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Barrick Gold profit, revenue drop as metal prices weaken

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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)
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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)

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