Barrick (GOLD) Releases Preliminary Results for Q4 and FY19

Zacks Equity Research

Barrick Gold Corporation GOLD has released its preliminary results for the fourth quarter and 2019.

In fourth-quarter 2019, the company produced 1.439 million ounces of gold and sold 1.413 million ounces. Average market price for gold in the quarter was $1,481 per ounce.  

The company stated that preliminary fourth-quarter gold production and sales were sequentially higher from third-quarter levels. The upside can be attributed to strong performance from Nevada Gold Mines, especially at Turquoise Ridge, Pueblo Viejo and Veladero. Also, normal operations resumed at North Mara in the fourth quarter following the lifting of restrictions at the tailings storage facility that were imposed in September 2019.

The company expects gold cost of sales per ounce for the fourth quarter to be in line with third-quarter levels. On a sequential-comparison basis, it expects a decline in gold total cash costs per ounce in the range of 1-3% and a decline in all-in sustaining costs per ounce of around 6-8% in the fourth quarter.

The company produced 117 million pounds of copper during the fourth quarter and sold 91 million pounds. Average market price for copper in the quarter was $2.67 per pound.

For 2019, preliminary gold production was 5.5 million ounces, which is at the higher end of the guidance of 5.1-5.6 million ounces. Preliminary copper production was 432 million pounds, which exceeds the top-end of the guidance of 375-430 million pounds.

The company is expected to release its fourth-quarter and 2019 results on Feb 12, 2020, before the opening bell.

Barrick’s shares have gained 53.5% in the past year compared with the industry’s 35% growth.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Daqo New Energy Corp DQ, Pan American Silver Corp PAAS and Commercial Metals Company CMC, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Daqo New Energy has projected earnings growth rate of 315.4% for 2020. The company’s shares have surged 82.9% in the past year.

Pan American Silver has an estimated earnings growth rate of 46.7% for 2020. Its shares have returned 52.6% in the past year.    

Commercial Metals has an expected earnings growth rate of 17.3% for fiscal 2020. The company’s shares have rallied 29.7% in the past year.

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