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Pandemic impact blamed as Barrick gold production falls in the second quarter

TORONTO — Barrick Gold Corp. is reporting lower production of gold and higher costs at its mines in preliminary second quarter results. The Toronto-based miner says gold production in the three months ended June 30 fell by about eight per cent to 1.
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TORONTO — Barrick Gold Corp. is reporting lower production of gold and higher costs at its mines in preliminary second quarter results.

The Toronto-based miner says gold production in the three months ended June 30 fell by about eight per cent to 1.149 million ounces from 1.25 million in the previous quarter, mainly due to COVID-19 related disruptions at its Veladero mine in Argentina.

It warns that second quarter gold all-in sustaining costs per ounce are expected to be seven to nine per cent higher than in the first quarter, while copper costs are to rise by four to six per cent.

Barrick says the average market price for gold in the second quarter was US$1,711 per ounce, up from its realized price of US$1,589 per ounce in the first quarter.

Copper production, meanwhile, rose to 120 million pounds from 115 million in the first quarter, and the average market price was US$2.43 per pound, up from a realized price of US$2.23 in the first quarter.

CEO Mark Bristow says Barrick is positioned well to achieve its guidance for the year.

In May, 2020 gold guidance was adjusted lower by about 200,000 ounces to between 4.6 and five million ounces to account for the suspension of its Porgera gold mine amid a dispute with the federal government in Papua New Guinea.

Barrick is to report its second quarter financial results on Aug. 10.

This report by The Canadian Press was first published July 16, 2020.

Companies in this story: (TSX:ABX)

The Canadian Press

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