Barrick Gold, little affected by inflation, reaffirms its targets for 2021
Aug.9 (Reuters) – Barrick Gold Corp (ABX.TO) said on Monday it did not expect a major impact from inflation this year and stuck to its annual forecast as prices of yellow metal increase.
CEO Mark Bristow said the miner has accounted for costs at current levels, but if costs rise further, Barrick could see a 1% impact.
He also said the company did not expect to exceed the costs of new projects even though there was some impact, especially from rising steel prices.
Rival Newmont last month warned of rising costs for materials, energy and labor in the second half of the year and into 2022, adding that overall costs had risen by around 5%. when steel, fuel and oils were taken into account.
Barrick reiterated its intention to spend between $ 1.8 billion and $ 2.1 billion, and all-in sustaining costs of $ 970 an ounce to $ 1,020 an ounce of gold and 2 to 2 , $ 20 per pound of copper in 2021.
It maintained its production estimate of 4.4 million ounces to 4.7 million ounces of gold attributable to the company, and 410 million pounds to 460 million pounds of copper.
Production fell 9.4% to 1.04 million ounces in the second quarter, while realized gold prices rose 5.5% to $ 1,820 per ounce as a weaker dollar and safe haven purchases due to pandemic uncertainties have boosted demand.
Barrick’s all-inclusive sustaining costs, a measure that reflects the total costs associated with production, increased 5.4% to $ 1,087 per ounce of gold.
The company’s U.S.-listed shares, which have fallen 8% this year, are down 1.4% in pre-market trading, reflecting lower gold prices.
Shares of global miners have fallen this year after hitting record gold prices last year.
Barrick’s adjusted second-quarter earnings per share of 29 cents exceeded estimates by 26 cents, according to Refinitiv IBES. Revenue of $ 2.89 billion, however, missed estimates of $ 2.92 billion.
Reporting by Arathy S Nair in Bengaluru; Editing by Shinjini Ganguli
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