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To: Jim Willie CB who wrote (7416)	9/26/2002 10:47:10 AM
From: Sully-	Read Replies (1) \| Respond to of 89467

Reuters Company News CORRECTED - UPDATE 1-Barrick cuts forecast, blames lower gold production Thursday September 26, 8:05 am ET In TORONTO story headlined "UPDATE 1-Barrick cuts forecast, blames lower gold prices" please read headline as..."UPDATE 1-Barrick cuts forecast, blames lower gold production"... (Corrects headline) A corrected repetition follows (Adds details throughout. Figures U.S. unless otherwise noted) TORONTO, Sept 26 (Reuters) - Barrick Gold Corp. (NYSE:ABX - News; Toronto:ABX.TO - News), one of the world's biggest gold producers, lowered its 2002 and third-quarter earnings forecasts on Thursday, blaming lower gold production and higher costs. The company, which earlier this month unveiled a multibillion-dollar mine development plan to double profits by 2006, revised its 2002 projections to between 33 cents and 35 cents a share, before adjustments, down from earlier guidance at the lower end of 42 cents to 47 cents a share. The company said gold production is on target for 5.7 million ounces this year, while cash costs are expected to average $178 per ounce, up from $172 per ounce previously estimated. The company expects third-quarter earnings to be in the range of five cents to six cents, before rising to the 10-cent to 11-cent range in the fourth quarter, based on spot gold prices averaging $315 an ounce. "While our third quarter has been disappointing, we expect our fourth quarter results to improve as we mine better grades at several operations," Chief Operating Officer John Carrington said in a statement. "We've been working flat out to fix the mine sequencing and processing issues at several of our mines this year, We thought we had turned the corner with a strong June," Carrington added. Wall Street analysts, on average, expected the company to earn 43 cents a share for the year, according to Thomson First Call, while they predicted third-quarter earnings of 12 cents and fourth-quarter profit of 13 cents a share. Cash costs are expected to average approximately $180 per ounce in the third quarter. Despite the higher costs, the company expects to generate $370 million in free cash flow this year. Barrick said it expects lower gold sales and higher depreciation expenses than previously forecast. In addition, Barrick plans to bring its forward sales position down to 12 million ounces, or 15 percent of current reserves -- a one-third reduction from present levels -- by the end of 2003. In line with that plan, Barrick expects to reduce its forward sales position to 16.9 million ounces from 17.9 million ounces and its variable price sales and call option contract position to 2.2 million ounces from 3.1 million ounces by the end of the third quarter of 2002. Barrick's shares have risen 10 percent this year, outperforming Placer Dome Inc. (Toronto:PDG.TO - News; NYSE:PDG - News), whose shares have fallen 12 percent in the same time. Barrick stock closed at C$28.07 a share on the Toronto Stock Exchange on Wednesday. They have traded in a 52-week range of C$21.30 to C$36.05. ($1=$1.58 Canadian) biz.yahoo.com