Barrick Gold Corp. tops analysts’ estimates for earnings and revenue in Q2

Barrick Gold Corp. tops analysts’ estimates for earnings and revenue in Q2
Written by:
Wajeeh Khan
10th August, 14:07
Updated: 10th August, 14:09
  • Barrick Gold Corp. tops analysts’ estimates for earnings and revenue in Q2.
  • The company's board announces 6.11 pence a share of quarterly dividend.
  • The Canadian firm expressed confidence that it will hit its annual production target.

Barrick Gold Corp. (TSE: ABX) published its quarterly financial results on Monday that came in stronger than what analysts had expected. The company attributed its success in the fiscal second quarter to timely operational changes it made at mines to combat the novel challenges raises by the Coronavirus pandemic.

Shares of the company opened roughly 1.5% up to £22.50 per share on Monday. On a year to date basis, Barrick Gold is currently 60% up. The stock had dropped to as low as £12.41 per share in March.

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At the time of writing, it is valued at £39.76 billion and has a price to earnings ratio of 12.11. CEO Mark Bristow of Barrick Gold said in May that the company offers a de facto self-funded insurance policy.

Barrick says it will hit its production target for 2020

Barrick also expressed confidence on Monday that it will hit its production target for 2020. The mining company reported £272.73 million of profit in the second quarter that translates to 15.28 pence a share. In the same quarter last year, Barrick had registered a much lower £148.21 million of profit or 8.40 pence per share.

On an adjusted basis, its per-share earnings printed at 17.57 pence per share. According to FactSet, experts had forecast a lower 13.75 pence of adjusted EPS for Barrick in Q2. Learn more about profit and loss statements.

The Toronto-based company valued production of gold in the recent quarter at 1.15 million troy ounces. In the comparable quarter of 2019, however, it had produced 1.35 million troy ounces instead. According to Barrick, the average realised gold price for the second quarter stood at £1,317.81.

Barrick announces 6.11 pence a share of quarterly dividend

In terms of revenue, the mining firm reported £2.34 billion in Q2 versus the year-ago figure of £1.57 billion. FactSet consensus, on the other hand, was at a lower £2.26 billion of revenue for Barrick in the recent quarter.

The company’s declared 6.11 pence per share of quarterly dividend that marks a 14% growth on a year over year basis. Barrick also announced on Monday that it had inked an agreement in Mali that secured an extension on Loulo convention through 2038.

In a statement last week, Barrick Gold had expressed plans of switching its main listing to New York from Toronto. The decision, it added, was not finalised as the company was taking its time to weigh the pros and cons.

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