Barrick profits jump as prices rise, guidance maintained

(Sharecast News) - NYSE-listed mining giant Barrick reported a sharp increase in adjusted profits in the third quarter on Monday, benefiting from higher gold and copper prices, as it maintained its full-year production and cost guidance.

Adjusted net earnings rose 37% to $1.35bn in the three months to 30 September, up from $982m a year earlier, while adjusted earnings per share jumped 41% to $0.82.

Revenues increased 22% to $5.07bn from $4.15bn as the average realised gold price climbed 23% to $4,243 per ounce, helping offset higher operating costs and a 2% decline in attributable gold production to 816,000 ounces.

However, production increased 6% year on year when excluding divested assets, supported by the continued ramp-up at Goldrush and improved performance at Loulo-Gounkoto.

Copper production fell 11% to 50,000 tonnes during the quarter, but the realised copper price rose 6% to $6.54 a pound.

Barrick reaffirmed its full-year production guidance of 2.90m to 3.25m ounces of gold and 190,000 to 220,000 tonnes of copper, alongside unchanged cost forecasts.

President and chief executive Mark Hill said: "This quarter marks a full year of consistent delivery," adding: "We remain on track to achieve our full-year production guidance, and we head into the year's final months with momentum, drive, and discipline."

Barrick also returned $1.04bn to shareholders during the quarter, including $761m in share buybacks, and declared a quarterly dividend of $0.175 per share.

The company ended September with net cash of $900m, compared with $300m a year earlier.

Barrick shares were up 4% at $42.20 by 1640 GMT.