Barrick Stellar Q1 Beating Estimates & Confirming Guidance

Today, Barrick announced a 78% increase in first-quarter profit, beating analyst expectations in part from rising gold and copper prices, and said it was on track to meet annual forecasts.

Gold production slipped from 1.25 million from 1.10 million ounces due partly to lower grades at its Pueblo Viejo mine in Dominican Republic while copper revenue increased 31% due to higher prices.

Adjusted profit surged 78% to $507 million in the quarter ended March 31, from $285 million a year earlier. Net earnings per share of 30 cents and adjusted net earnings per share of 29 cents

With record operating & free cash flows of $1.3B & $.8B, the company has announced a 9c quarterly dividend and a 14c return of capital. This represents the first tranche of three payments for a total of  $750M return of capital. These payments will be paid on June 15, 2021 to shareholders of record at the close of business on May 28, 20214.

Production in the second half is expected to be higher than the first , Barrick said, mainly due to the ramp-up of underground mining at the Bulyanhulu mine in Tanzania and higher expected grades at Lumwana Zambia.

President and chief executive Mark Bristow said Barrick’s intensified focus on exploration was paying dividends, with exciting brownfields and generative results from multiple targets across the group. Kibali in the Democratic Republic of Congo was on course to replace reserves depleted by mining for the third successive year and there were also particularly encouraging results from Nevada, Loulo-Gounkoto in Mali, PV in Dominican Republic and Jabal Sayid in Saudi Arabia.