NYSE- and TSX-listed Barrick Gold has maintained its 2018 production guidance at 4.5-million to 5-million ounces and its copper guidance at 345-million to 410-million pounds, after reporting preliminary third-quarter production results.
The miner, which recently agreed to buy London-listed Randgold Resources for about $5.4-billion, increased its gold production by 8% quarter-on-quarter to 1.15-million ounces and its copper output by 28% quarter-on-quarter to 106-million pounds of copper.
The improved third-quarter gold production is attributed to improved throughput and grade at Barrick Nevada, in the US, and the jump in copper production to higher output from the Lumwana mine, in Zambia.
Barrick lifted its gold sales by 16% on the prior quarter to 1.20-million ounces and its copper sales by 54% to 114-million pounds. The average September quarter market price for gold was $1 213/oz and for copper $2.77/lb.
The miner said that third-quarter gold and copper costs would be lower.
Further, Barrick reported that its full-year effective tax rate would be about 48% to 50%, assuming a gold price of $1 200/oz for the remainder of the year.
The increase from the previous guidance range of 44% to 46% was due to lower-than-anticipated sales from operations in lower-tax jurisdictions, in particular Barrick Nevada.
Barrick will provide additional discussion and analysis on October 24, when it publishes its quarterly results.