Headline: Barrick Gold Reports 3rd-Quarter Profit On Higher Production, Sales
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Barrick Gold Corp. - Toronto
3rd Quar Sept. 30:
1998 1997
Revenues -a $324,000,000 $314,000,000
Net income 76,000,000 b (315,000,000)
Shr ern (basic)
Net income .20 b (.84)
Figures in parentheses are losses.
a. Represents revenues from gold sales.
b. Includes a non-cash provision of $385 million, or $1.03 a share.
Barrick Gold Corp. (ABX), Toronto, said its growth in the first nine
months was due to higher production, significantly lower costs and the
premium earned on its gold sales.
Barrick said gold production rose 5% to 2.3 million ounces in the
first nine months, compared with a year earlier. The company said its
1998 production target is 3.1 million ounces.
Barrick said its cash operating costs declined 14% to $160 an ounce
in the latest nine-month period, compared with $186 an ounce a year
earlier. The company said its focus on productivity led to lower unit
costs at all operations.
Total cash costs, including royalties and production taxes, declined
to $181 an ounce in the latest nine months, compared with $209 an ounce
a year earlier.
Barrick said production at its Goldstrike property increased 10% to
1.7 million ounces, with the Meikle mine producing almost 700,000 ounces
in the first nine months of 1998. The company said the Meikle mine
exceeded all targets and was a major contributor to Barrick's nine-month
performance.
The company said it realized an average of $400 an ounce on
production in the latest nine months, a premium of $105 an ounce on the
average spot price for the period. It said it has 10.4 million ounces
sold forward, including production through 2000, at an average of $400
an ounce.
Barrick is a gold-mining company.
Copyright (c) 1998 Dow Jones & Company, Inc.
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