Barrick’s first-quarter output hurt by mill failure at mines in Nevada

April 18, 2022

Barrick Gold said that first-quarter production from its Nevada Gold Mines operations fell 17.7 percent from the previous three months. The company announced that depletion of stockpiled higher grade underground ore after the mechanical mill failure at a roaster facility, which processes the gold ore, in the second quarter last year.

Barrick said gold output was lower at its Carlin and Cortez mines which are part of Nevada Gold Mines, a joint venture between Barrick and Newmont Corp. Reuters reported.

The company, which is scheduled to release its first-quarter results on May 4, said the average market price for gold in the quarter was $1,877 per ounce, up from $1,795 per ounce in the prior quarter.

Barrick said it expects the company’s all-in sustaining costs (AISC) for gold, a key industry metric, to be 19 to 21 percent higher from the fourth quarter, while AISC for copper is expected to be 1 to 3 percent lower.

Miners have been hit hard by a pandemic-led rise in expenses as they implement prevention measures to ensure the safety of workers and surrounding communities, with supply-chain issues due to global restrictions on movement adding to their woes.

Barrick said its gold production in 2022 is expected to increase through the year, while copper production is expected to be higher in the second half.

The company’s copper production during the quarter was 101 million pounds, down 19.84 percent from the previous quarter, hurt by lower output at its Lumwana mine, while total preliminary gold production was down 17.7 percent at 990 million ounces.

Analysts on an average expected gold production of 1.025 million ounces, according to Refinitiv IBES.



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