Barrick Gold Corporation has reported preliminary Q2 sales of 1.07 Moz of gold and 96 million pounds of copper, as well as preliminary Q2 production of 1.04 Moz of gold and 96 million pounds of copper.
It remains on track to achieve 2021 guidance with both the Africa & Middle East and Latin America & Asia Pacific regions trending to the higher end of their regional gold guidance and North America to the lower end.
The average market price for gold in Q2 was $1,816 per ounce, while the average market price for copper in Q2 was $4.40 per pound.
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Preliminary Q2 gold production was lower than Q1, with planned maintenance shutdowns at Nevada Gold Mines’ processing facilities further impacted by a mechanical mill failure at Carlin’s Goldstrike roaster, as well as planned maintenance at Pueblo Viejo.
The Goldstrike roaster is currently operating at a reduced rate and work to repair the mill is expected to be completed in Q3, with actions being taken to mitigate the impact on NGM’s full year production. As previously guided, Barrick’s gold production in the second half of 2021 is forecast to be higher than the first half. Q2 gold cost of sales per ounce is expected to be 2 to 4% higher, total cash costs per ounce are expected to be 1 to 3% higher and all-in sustaining costs per ounce are expected to be 6 to 8% higher than Q1.
Preliminary Q2 copper production was slightly higher than Q1. Copper sales in Q2 were in line with production, but 15% lower than the previous quarter, as Lumwana sold a higher portion of its stockpiled concentrate in Q1 2021. We continue to expect the Company’s copper production in the second half of 2021 to be stronger than the first half, mainly driven by higher grades from Lumwana.
Q2 copper cost of sales per pound is expected to be 14 to 16% higher, C1 cash costs per pound are expected to be 13 to 15% higher and copper all-in sustaining costs per pound are expected to be 20 to 22% higher than Q1, largely due to lower sales at Lumwana and maintenance at Zaldivar, as well as the impact of a higher copper price translating into higher royalty costs.