BREAKING NEWS
This content is not available in your region

Barrick Gold profit, revenue drop as metal prices weaken

Access to the comments Comments
Barrick Gold profit, revenue drop as metal prices weaken
FILE PHOTO: Barrick Gold Executive Chairman John Thornton attends the company's annual shareholders meeting in Toronto, Ontario, Canada April 25, 2017. REUTERS/Chris Helgren   -   Copyright  Chris Helgren(Reuters)
Text size Aa Aa

TORONTO (Reuters) – Barrick Gold Corp <ABX.TO>, which has agreed to a $6.1 billion (£4.7 billion) deal to acquire Randgold Resources Ltd <RRS.L>, reported a drop in third-quarter adjusted profit and revenue on Wednesday, hit by lower prices for gold and copper alongside higher fuel costs.

Adjusted net earnings for the quarter ended Sept. 30 were $89 million (£69.1 million), or 8 cents a share, compared with $200 million, or 17 cents a share in the same three-month period a year ago.

That beat the 5 cents per share adjusted profit that analysts, on average, had expected, according to Refinitiv.

On a net basis, Toronto-based Barrick lost $412 million, or 35 cents a share, reflecting a $405 million impairment charge for a processing project at its Lagunas Norte mine in Peru that it will not advance.

Revenue of $1.8 billion fell from $1.99 billion in the same period last year.

Barrick lowered its forecast for 2018 administrative costs to $235 million from $275 million. In July, the company took $28 million in severance charges as it reduced jobs outside mine operations from roughly 780 at the end of 2017, towards a target of 300.

Barrick said 2018 gold production is seen in the low end of a range between 4.5 million and 5 million ounces, at all-in sustaining costs of $765-$815 per ounce. Fourth-quarter output is seen at approximately 1.25 million ounces.

Copper production in 2018 is still seen at 345 million to 410 million pounds, at all-in production costs of $2.55 to $2.85 per pound.

(Reporting by Susan Taylor; Editing by Tom Brown)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.