One of the world’s largest gold producers, Barrick Gold Corporation, reached higher earnings in the 1Q earnings than last year. It is mainly because rising gold and copper prices drive revenue growth. The Toronto-based gold miner said it expects earnings to achieve its annual forecast.
Barrick Gold Corp on Wednesday reported a 78% increase in first-quarter profits.
Barrick’s profit in the first quarter was 538 million U.S. dollars, higher than the 400 million U.S. dollars in the same period last year, and revenue increased from 2.72 billion U.S. dollars to 2.96 billion U.S. dollars. Barrick declared a quarterly dividend of 9 cents per share.
Gold production fell to 1.1 million ounces from 1.2 million ounces in the same period last year, partly due to the lower grade of the Pueblo Viejo mine in the Dominican Republic.
However, the actual price was 1,777 U.S. dollars per ounce, a 12% increase from 1,589 U.S. dollars.
Barrick Plans to Increase Copper Examination
Copper revenues increased by 31% compared to the fourth quarter of 2020. Barrick’s realized price rose to 4.12 U.S. dollars per pound from 3.39 U.S. dollars in the previous quarter and 2.23 U.S. dollars in the same period last year.
Total earnings per share were 0.29 U.S. dollars, higher than analysts’ expectations of 0.27 U.S. dollars.
Barrick plans to continue its copper exploration while increasing the income of existing mines. The price rises above 4.50 U.S. dollars per pound.
An increase in copper prices is because copper production fell to 93 million pounds from 119 million pounds in 4Q. In 1Q of 2020, these numbers were 115 million pounds. However, in the most recent quarter, copper sales increased from 110 million pounds last year to 1.13 Billion pounds.
Copper should account for at least 20% of the company’s gold equivalent ounces sold from 2021 to 2025. It is higher than the 16% calculated by the actual realizable price 2020.
Barrick Will Re-Operate Porgera Gold Mine
Later this year, Barrick’s suspended Porgera gold in Papua New Guinea will re-operate. The company negotiated with the central government to resolve the dispute, leading to greater ownership.
Overall, Barrick has made good progress in its plan to restart the Porgera mine. However, it is not yet ready to include its products in its annual guidance.