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Barrick's (GOLD) Earnings Beat Estimates in Q3, Sales Lag

Barrick Gold Corporation GOLD recorded net earnings (on a reported basis) of $347 million or 20 cents per share in third-quarter 2021, down from $882 million or 50 cents per share in the year-ago quarter.

Barring one-time items, adjusted earnings per share were 24 cents. The figure beat the Zacks Consensus Estimate of 23 cents.

Barrick recorded total sales of $2,826 million, down 20.2% year over year. The figure missed the Zacks Consensus Estimate of $2,832.7 million. Results in the reported quarter were hurt by lower gold prices.

Nevada Gold Mines delivered a quarter-on-quarter improvement driven by improved run time at all major processing facilities.

Barrick Gold Corporation Price, Consensus and EPS Surprise

 

Barrick Gold Corporation price-consensus-eps-surprise-chart | Barrick Gold Corporation Quote

 

Operational Highlights

Total gold production amounted to around 1.09 million ounces in the third quarter, down 5.5% year over year from 1.15 million ounces. Average realized price of gold was $1,771 per ounce in the quarter, down 8% year over year.

Cost of sales increased 5.4% year over year to $1,122 per ounce. All-in sustaining costs (AISC) moved up around 7% year over year to $1,034 per ounce in the quarter.

Copper production declined 2.9% year over year to 100 million pounds. Average realized copper price was $3.98 per pound, up 21.3% year over year.

Financial Position

At the end of the quarter, Barrick had cash and cash equivalents of $5,043 million, up 6% year over year. The company’s total debt was $5,154 million at the end of the quarter, flat year over year.

Net cash provided by operating activities declined 43.5% year over year to $1,050 million for the quarter.

Guidance

For 2021, Barrick anticipates attributable gold production in the range of 4.4-4.7 million ounces. AISC is expected in the range of $970-$1,020 per ounce and cost of sales is projected in the band of $1,020-$1,070 per ounce.

The company also expects copper production in the range of 410-460 million pounds at AISC of $2.00-$2.20 per pound and cost of sales of $1.90-$2.10 per pound.

Capital expenditures are projected between $1,800 million and $2,100 million.

Price Performance

Barrick’s shares have declined 35% in the past year compared with a 28% fall of the industry.

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Zacks Rank & Key Picks

Barrick currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation NUE, The Chemours Company CC and Olin Corporation OLN.

Nucor has a projected earnings growth rate of around 583.5% for the current year. The company’s shares have soared 130.9% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Chemours has an expected earnings growth rate of around 86.9% for the current year. The company’s shares have gained 30.6% in the past year. It currently carries a Zacks Rank #2 (Buy).

Olin has an expected earnings growth rate of around 740% for the current year. The company’s shares have surged 192.3% in the past year. It currently flaunts a Zacks Rank #1.


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Nucor Corporation (NUE): Free Stock Analysis Report
 
Barrick Gold Corporation (GOLD): Free Stock Analysis Report
 
Olin Corporation (OLN): Free Stock Analysis Report
 
The Chemours Company (CC): Free Stock Analysis Report
 
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