HomeGoldGood Q2 results for Barrick

Good Q2 results for Barrick

Construction well underway
at Barrick’s Buzwagi
project in Tanzania
Toronto, Canada — MININGREVIEW.COM — 01 August 2008 – Barrick Gold Corporation – the world’s leading gold producer, with 27 operating mines and many advanced exploration and development projects in ten countries across five continents – has posted another quarter of impressive financial results in the face of increasing operating costs.
Releasing its second quarter report here, the company revealed net income of US$485 million (R3.8 billion) and operating cash flow of US$531 million (R4.2 billion) in the three-month period, compared to net income of US$396 million (R3.1 billion) and operating cash flow of US$336 million (R2.6 billion) from April to June 2007. This meant that net income rose 22% and operating cash flow increased 58%, compared to the prior year period.

The report added that second quarter gold production was 1.86 million oz at total cash costs of $417/oz, and copper production was 87 million lbs at total cash costs of $1.08/lb.

Higher gold prices have significantly outpaced year-on-year cash cost increases from energy and other inflationary pressures, said the report. Revenues expanded 20% from the second quarter of 2007 to $2.0 billion (R16 billion), and cash margins have increased 68% to $477/oz over the same period.

Barrick pointed out that it continued to be in line with its gold production guidance for 2008 of 7.6 – 8.1 million oz, but now expected full year production to trend towards the lower end of the range. It added that with higher assumed energy, gold and other consumables prices, total cash costs for 2008 had been revised and were now expected to be in the range of $425 – $445/oz.

“Barrick has posted another quarter of solid financial results despite surging energy costs,” said chairman and interim CEO Peter Munk.