Barrick Gold Corp (NYSE: GOLD) stock fell over 2.3% on August 10th, 2021 ( as of 1:21:06 PM UTC-4 · USD ; Source: Google finance) after the company posted mixed results for the second quarter of FY 21. The production for the second quarter of 2021 was affected by a mechanical mill failure at Carlin but Barrick remains on course to achieve its guidance for the year. Barrick also announced that the second $250 million tranche (approximately $0.14 per share) of the return of capital distribution totalling $750 million will be paid on September 15, 2021 to shareholders of record at the close of business on August 31, 2021. The second quarter dividend of $0.09 per share will be paid on September 15, 2021 to shareholders of record at the close of business on August 31, 2021. The company is not expecting a major hit from inflation this year and stuck to its full-year forecasts as prices for the yellow metal tick up. The company did not expect to exceed costs on new projects even though there was some impact, particularly from rising steel prices.
Meanwhile, in Canada, Hemlo’s reinvention as an underground operation was impeded by COVID travel restrictions, which have affected the Australian contractors with whom Barrick has worked very successfully in Africa. As a result, the mine underperformed and is trending to the bottom of its guidance for 2021. The transformation of the underground continues, however, with mining from a new portal expected to start in this quarter. And in exploration, the company is continuing to define potential resource additions, which could extend the mine’s life beyond 2030.
GOLD in the second quarter of FY 21 has reported the adjusted earnings per share of 29 cents, beating the analysts’ estimates for the adjusted earnings per share of 28 cents, according to analysts polled by Thomson Reuters. The company had reported the adjusted revenue of $2.89 billion in the second quarter of FY 21, missing the analysts’ estimates for revenue of $3.06 billion. Production fell 9.4% to 1.04 million ounces in the second quarter, while realized gold prices rose 5.5% to $1,820 per ounce as a weaker dollar and safe-haven buying due to pandemic-related uncertainties boosted demand.
Barrick reiterated its plans to spend between $1.8 billion and $2.1 billion, and all-in-sustaining costs of $970 per ounce to $1,020 per ounce of gold and $2-$2.20 per pound of copper in 2021. It maintained its production estimate of 4.4 million ounces to 4.7 million ounces of gold attributable to the company, and 410 million pounds to 460 million pounds of copper.