Barrick CEO Mark Bristow
Gold major Barrick Gold said on Thursday that its full-year production was continuing to trend towards the upper end of its 5.1-million to 5.6-million ounce guidance range, despite third-quarter production being lower than that of the second quarter.
CEO Mark Bristow said that the third-quarter production results were strong across its portfolio and explained that the quarter-on-quarter gold production drop was the result of operational restrictions at North Mara, in Tanzania.
Third-quarter gold costs were also higher (between 11% and 13%), as a result of higher depreciation resulting from purchase price adjustments at Nevada Gold Mines, in the US, but he said that it remained in line with its guidance for the year.
The third-quarter results show preliminary third-quarter sales of 1.32-million ounces of gold and 64-million pounds of copper, as well as preliminary third-quarter production of 1.31-million ounces of gold and 111-million pounds of copper.
Preliminary third quarter copper production was higher than the second quarter, as a result of higher production at Lumwana, in Zambia.
Third-quarter copper sales were lower than production, owing to a major refurbishment at one of the third-party smelters that processes a portion of the concentrate produced by Lumwana. Barrick said that the refurbishment should be completed by the end of the year and that it was evaluating alternative smelter opportunities during the maintenance period.
Third quarter copper cost of sales per pound are expected to be in line with the prior quarter and C1 cash costs per pound are expected to be 2% to 4% higher than the second quarter.