VANCOUVER (miningweekly.com) – The world's major gold producers on Wednesday reported mostly positive results for the three months ended September, saying profits increased while costs continued to fall in a higher gold price environment.
The world’s largest gold producer by output Barrick Gold reported adjusted earnings of $0.24 a share, compared with $0.11 a share in the comparable period last year. This beat analyst expectations of average earnings of $0.20 a share.
Revenue was down slightly at $2.3-billion from $2.32-billion a year earlier, while free cash flow fell to $674-million from $866-million.
Toronto-based Barrick increased its full-year 2016 production forecast to a range of 5.25-million to 5.55-million ounces of gold, from a previous target of 5-million to 5.5-million. Barrick has also lowered its estimate of all-in sustaining costs (AISC) to between $740/oz and $775/oz from a previous target of $750/oz to $790/oz.
The company added that capital expenditure for the current year was also lowered at between $1.2-billion and $1.3-billion, down from between $1.25-billion and $1.4-billion in the previous quarter.
Third-quarter gold output fell to 1.38-million ounces from 1.66-million ounces. AISC improved to $704/oz from $771/oz. Copper output fell to 100-million pounds from 140-million pounds.
Barrick reduced its debt load by $1.4-billion so far this year and the company said it was on track to meet its 2016 reduction target of $2-billion. In the medium term, it wants to reduce its $8.5-billion debt to below $5-billion.
NEWMONT DOUBLES DIVIDEND
Meanwhile, Greenwood Village, Colorado-based Newmont doubled its quarterly dividend to $0.05 from $0.025 previously. The company also refreshed its dividend policy, which is linked to the gold price. CEO Gary Goldberg stated that the revised policy had the potential to increase payout levels by more than 100%, starting in the first quarter of 2017.
Newmont reported net income of $169-million, or $0.32 a share, up from $159-million, or $0.30 a share, a year earlier.
Excluding special items, the company’s adjusted net income increased to $202-million, or $0.38 a share, in the quarter, from $70-million, or $0.13 a share, a year earlier.
Newmont also raised the lower end of its 2016 gold production forecast to between 4.8-million and 5-million ounces of gold this year, compared with a previous forecast of 4.7-million to 5-million ounces.
Attributable output at Newmont rose to 1.25-million ounces in the quarter, up from 1.21-million a year earlier.
The miner's AISC rose to $925/oz from $879/oz before, impacted by inventory adjustments at its Yanacocha mine, in Peru, and Ahafo mine, in Ghana.
GOLDCORP BACK IN BLACK
Vancouver-based Goldcorp reported net earnings of $59-million, or $0.07 a share, compared with a loss of $192-million, or $0.23 a share, a year earlier.
Excluding special items, Goldcorp reported earnings of $0.11 a share, in line with analyst forecasts.
Revenue was down 11% year-on-year at $1.15-billion.
Despite Goldcorp’s output in the third quarter falling 29% year-on-year to 715 000 oz in the third quarter, it reaffirmed its full-year guidance of between 2.8-million and 3.1-million ounces of gold this year at an AISC of between $850/oz and $925/oz. AISC for the third quarter fell to $812/oz from $858/oz a year earlier.
Goldcorp also announced a maiden indicated resource of 4.5-million ounces gold indicated and 900 000 oz of gold inferred at Porcupine's new Dome Century project, in Ontario. A study for a potential large-scale, openpit mine is also under way.
AGNICO BEATS EXPECTATIONS
NYSE- and TSX-listed Agnico Eagle Mines reported a quarterly net income of $49.4-million, or $0.22 a share, compared with net income of $1.3-million, or $0.01 a share, a year earlier.
Excluding items the adjusted net income was $56.6-million, or $0.25 a share, beating analyst expectations of earning $0.19 a share.
Agnico stated that operations continued to deliver solid production and cost performance, and it now expects to exceed the upper end of its 2016 production guidance of 1.6-million ounces.
Payable gold output totalled 416 187 oz, compared with 441 124 oz in the third quarter of 2015. AISC for the quarter were $821/oz, compared with $759/oz for the third quarter of 2015.
The company reduced net debt by about $154-million, to $587.9-million, as at September 30. Cash and cash equivalents and short-term investments totalled $627.4-million; Agnico declared a quarterly dividend of $0.10 a share.