Toronto, Canada — MININGREVIEW.COM — 28 July 2011 – The world’s largest gold miner “’ Barrick Gold Corporation “’ has reported a 35% increase in its quarterly profit as the surge in bullion prices helped boost the company’s results.
Reuters reports that the Euro-zone debt crisis, along with mounting fears of a U.S. debt default, have pushed the price of gold to new highs in recent months. Spot gold broke through the US$1,600 an ounce level earlier this month and hit a record US$1,628 an ounce on Wednesday.
Barrick said in a statement released here that its second-quarter net income had risen to US$1.16 billion, or US$1.16 a share, up from a year-before profit of US$859 million, or 86 cents a share.
Excluding one-time items, earnings rose to US$1.12 billion, or US$1.12 a share. That compared with a profit of US$824 million, or 84 cents a share, a year earlier.
Meanwhile an announcement in London revealed that African Barrick Gold “’ the African offshoot of Barrick Gold “’ showed a net income increase of 21% in the first half, boosted by higher gold sales and prices, with production in line with its expectations.
Net income rose to US$120 million from US$99 million as the Tanzania-focused miner doubled its interim dividend to 3.2 cents a share.
Production in the second quarter, which saw a mill motor failure at its Buzwagi mine and an attack on its North Mara operation, fell 4% from the year-earlier quarter to 171,950 ounces.
However, the figure exceeded some analysts’ expectations. Canaccord Genuity had forecast second-quarter output of 159,000 ounces and Numis Corp had anticipated 150,000 ounces.
The miner said it was confident for the second half and retained its forecast to produce between 700,000 and 760,000 ounces of gold this year at a cash cost of US$590-650 an ounce.