Canada's Barrick Gold reports Q2 profit beat on higher output, prices
ca.finance.yahoo.com
Reuters
Mon, August 12, 2024 at 3:08 a.m. PDT·2 min read
GOLD
+0.74%
(Reuters) -Canada's Barrick Gold edged past Wall Street estimates for second-quarter profit on Monday, as the company benefited from higher prices and robust production.
Barrick's U.S.-listed shares were up 2.1% before the bell.
Hopes of a U.S. interest rate cut this year and uncertainty around elections, along with global geopolitical risks have lifted the bullion's safe-haven appeal, pushing it to a record high level.
The company's average realized gold prices jumped 19% to $2,344 per ounce and copper prices rose 22% to $4.53 per pound.
The company also benefited from higher production at its mines in Nevada and Papua New Guinea, with gold output of 948,000 ounces in the quarter ended June 30, compared to estimates of 905,800 ounces, according to LSEG data.
Last month, rival Newmont also beat second-quarter profit estimates, benefiting from the rally in bullion prices and robust production at its mines.
Barrick said its free cash flow surged more than 400% to $340 million from a year earlier, adding that the "strong cash flow from operations" sets it up to execute various mine expansion projects across the globe.
The Toronto, Canada-based company reaffirmed its annual gold production outlook of 3.9 million ounces to 4.3 million ounces. This compares to analysts expectations of 4 million ounces of gold in 2024.
Barrick added that it has not received any response from the United Nations Human Rights Council, after the company addressed allegations of human rights violations at its North Mara Gold Mine in June.
On an adjusted basis, the world's second-largest gold miner posted a profit of 32 cents per share in the April-June quarter, compared with estimates of 28 cents per share. |
