Barrick Reports 25% Rise in Earnings and 60% Increase in Cash Flow for the Second Quarter
All amounts in United States dollars
TORONTO, July 22 /CNW/ - Barrick Gold Corporation today reported a 25%
increase in earnings and a 60% increase in cash flow for the second quarter of
1999. The combination of higher production and lower cash costs, as well as
the premiums realized on its gold sales, contributed to the exceptional
results.
Net income rose to US$84 million for the quarter ended June 30, 1999,
from US$67 million in the year-earlier quarter, on revenues of US$373 million,
compared to US$293 million. On a per share basis, earnings increased 11% to
US20 cents per share from US18 cents per share in the year-earlier quarter.
Operating cash flow rose to US$174 million, or US44 cents per share, compared
to US$109 million, or US29 cents per share.
For the six months ended June 30, 1999, net income increased to a record
US$171 million, or US43 cents per share, from US$142 million, or US38 cents
per share, in the year-earlier period, on revenues of US$763 million, compared
to US$595 million. Operating cash flow for the six-month period rose to US$384
million, or US$1.00 per share, from US$244 million, or US65 cents per share,
in the same period of 1998.
''These results confirm once again Barrick's unrivalled position in the
industry,'' said Randall Oliphant, President and Chief Executive Officer. ''We
are making more money today than ever before, selling our gold for three times
the cost of production.''
Gold production rose 30% to 2.0 million ounces for the six months ended
June 30, 1999, compared to 1.5 million ounces in the same period last year.
Cash operating costs declined 22% to US$122 per ounce, compared to US$157 per
ounce. Total cash costs, including royalties and production taxes, declined to
US$131 per ounce for the period ended June 30, 1999, from US$179 per ounce.
Notably, the Company's new Pierina Mine contributed 554,469 ounces of gold at
a total cash cost of US$38 per ounce during the first half of 1999.
''Our operations are more than meeting their production and cost targets
across the board,'' said John Carrington, Vice Chairman and Chief Operating
Officer. ''These excellent results were achieved through our relentless focus
on productivity and cost control.''
In the first half, Barrick's Premium Gold Sales Program generated US$208
million in additional revenue. The Company realized an average price of US$385
an ounce on its gold sales, a premium of US$105 per ounce over the average
spot price of US$280 for the first six months. The Company's production
through 2001 is sold forward at an average minimum price of US$385 per ounce.
Barrick currently has 13.3 million ounces sold forward.
Barrick is the only gold mining company with an ''A'' credit rating. The
Company's balance sheet had cash of US$565 million, no net debt and
shareholders' equity of US$4 billion, at June 30, 1999.
The Company remains on track to meet its 1999 targets. They include cash
operating costs of US$125 per ounce (1998 - US$160) and production of 3.6
million ounces (1998 - 3.2 million ounces).
Barrick's shares are traded under the ticker symbol ABX on the Toronto,
Montreal, New York, London and Swiss Stock Exchanges and the Paris Bourse.
Certain statements set forth above constitute ''forward looking
statements'' within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Such statements involve risks, uncertainties
and other factors that may cause the actual results, performance or
achievements to differ from those expressed or implied by such forward looking
statements. Such risks and uncertainties are described in periodic filings
made by Barrick with the U.S. Securities and Exchange Commission and Canadian
provincial securities regulatory authorities.
<<
BARRICK GOLD CORPORATION
Key Statistics
-------------------------------------------------------------------------
For the three months For the six months
(in United States dollars) ended June 30, ended June 30,
(Unaudited) 1999 1998 1999 1998
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Operations
Gold production (ounces) 969,324 754,459 1,980,237 1,523,741
Gold sold (ounces) 970,899 732,530 1,983,442 1,487,842
Average spot gold price $ 274 $ 300 $ 280 $ 298
Average price realized
per ounce sold $ 385 $ 400 $ 385 $ 400
Cash operating costs per ounce $ 128 $ 161 $ 122 $ 157
Total cash costs per ounce (1) $ 137 $ 183 $ 131 $ 179
Financial Results (millions)
Revenue from gold sales $ 373 $ 293 $ 763 $ 595
Net income for the period 84 67 171 142
Operating cash flow 174 109 384 244
-------------------------------------------------------------------------
Per Share Data (dollars)
Net income for the period-
basic $ 0.21 $ 0.18 $ 0.44 $ 0.38
fully diluted 0.20 0.18 0.43 0.38
Operating cash flow 0.44 0.29 1.00 0.65
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Common Shares Outstanding (millions) 1999 1998
-------------------------------------------------------------------------
As at June 30 394 376
Weighted average 386 375
As at
----------------------
June 30, December 31,
1999 1998
Financial Position (millions)
Cash $ 565 $ 416
Working capital 587 378
Long-term debt 525 500
Shareholders' equity 4,014 3,592
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(1) Includes royalties and production taxes.
BARRICK GOLD CORPORATION
Gold Production and Cost Summary
-------------------------------------------------- --------------------
Three months Six months
(ounces and cash operating ended June 30, ended June 30,
costs per ounce) 1999 1998 1999 1998
-------------------------------------------------- --------------------
Goldstrike Property
Betze-Post Mine 351,669 334,851 640,176 618,170
$184 $187 $184 $188
Meikle Mine 197,580 214,368 435,375 495,072
$76 $75 $80 $73
---------------------- --------------------
549,249 549,219 1,075,551 1,113,242
$145 $142 $143 $135
---------------------- --------------------
Pierina Property (1) 238,809 - 554,469 -
$35 - $38 -
---------------------- --------------------
Canadian Properties
Bousquet Mine 49,803 41,500 104,961 87,398
$181 $197 $175 $192
Holt-McDermott Mine 28,557 33,407 55,991 69,085
$127 $120 $135 $124
---------------------- --------------------
78,360 74,907 160,952 156,483
$162 $163 $161 $162
---------------------- --------------------
Other Properties 102,906 130,333 189,265 254,016
$214 $241 $208 $249
-------------------------------------------------- --------------------
Total production 969,324 754,459 1,980,237 1,523,741
Cash operating costs per ounce $128 $161 $122 $157
-------------------------------------------------- --------------------
(1) Property commenced operations in November 1998.
>>
%SEDAR: 00000923E
-30-
For further information: Media Contact: Vincent Borg, Vice President,
Corporate Communications, Tel (416) 307-7477, Fax (416) 861-1509,
barrick.com
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