Barrick misses gold guidance as production falls to 22 year low

Barrick misses gold guidance as production falls to 22-year low

(Bloomberg) — Barrick Gold Corp.’s bullion production. slipped to its lowest level since 2000 last year, falling short of analysts’ expectations and its own target as operational issues dampened production.

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Barrick produced 4.14 million ounces of gold last year, marking its third consecutive decline in annual production, according to preliminary figures the company released on Tuesday. Chief Executive Officer Mark Bristow said as recently as Nov. 3 that Barrick was on track to meet its full-year guidance of 4.2 million to 4.6 million ounces, albeit on the lower end of the range.

Barrick shares were down 3% to C$25.32 as of 12:05 pm in Toronto, their biggest one-day decline since mid-December.

The world’s second-largest gold producer has faced production-impacting challenges at its mines through 2022, including repairs and upgrades in Nevada and an inability to resume operations at its Porgera mine in Papua New Guinea while it is on a settlement waiting with the government to resume the facility .

Gold production in the fourth quarter was 1.11 million ounces, the strongest quarter in a year, although it still fell short of analysts’ expectations. Meanwhile, annual copper production was 440 million pounds, in the mid-range of forecast and the highest estimates.

The Toronto-based metals producer has seen its gold production fall since acquiring Randgold Resources Ltd in 2019. Barrick’s highest annual production was in 2006, when it had a record production of 8.64 million ounces, the year the company acquired its Canadian rival Placer Dome Inc..

Acquisitions could help increase Barrick’s metals production while longer-term development projects wait to come to fruition. Bristow said in a Dec. 28 interview that he was focusing on deals in the “younger part of the market” this year.

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Barrick is expected to report fourth-quarter results on February 15, a report that typically outlines the company’s metals production forecast for the coming year.

(Updates stocks in third paragraph.)

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