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Barrick (ABX) Reveals Preliminary Q1 Production Numbers


Barrick Gold Corporation ABX reported preliminary production results for first-quarter 2018.

Preliminary gold production and sales for the first quarter were roughly 1.05 million ounces and 1.07 million ounces, respectively. Average market price for gold during the quarter was $1,329 per ounce. Preliminary copper production and sales both totaled 85 million pounds, and average market price for copper was $3.16 per pound.

Notably, first-quarter gold and copper production figures highlight a sequential decline from last quarter’s reported numbers of roughly 1.4 million ounces and 99 million pounds, respectively.

Moreover, the company stated that realized copper price in the first quarter is projected to be roughly 5% lower than the average first quarter market price for the metal due to provisional pricing adjustments. This reflects down trend in copper prices over the period.

Shares of Barrick have lost 13.5% in the last three months, underperforming the industry’s roughly 10% decline.

Barrick is facing challenges from declining production. The company’s gold production fell roughly 12% year over year in fourth-quarter 2017 and 3.5% for full-year 2017, impacted by sale of 50% interest in the Veladero mine and lower production from Acacia.

Moreover, the company faces headwinds from higher expected costs in 2018. Its guidance for all-in sustaining costs of $765-$815 per ounce for this year reflects an increase from $750 in 2017.

Higher cost guidance reflects lower expected gold production from Pueblo Viejo, Veladero and Barrick Nevada, higher costs at Acacia and increased processing of higher-cost inventory.

Barrick Gold Corporation Price and Consensus

Barrick Gold Corporation Price and Consensus | Barrick Gold Corporation Quote

Zacks Rank & Stocks to Consider

Barrick currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks worth considering in the basic materials space are ArcelorMittal MT, Daqo New Energy Corp. DQ and CF Industries Holdings, Inc. CF, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ArcelorMittal has an expected long-term earnings growth rate of 13.4%. Its shares have soared 41.8% over a year.

Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have rallied a whopping 210.6% over a year.

CF Industries has an expected long-term earnings growth rate of 6%. Its shares have gained 30.7% over a year.

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