Barrick on track to achieve 2021 production targets

The average market price for gold in 1Q21 was US$1794/oz, while the average market price for copper in 1Q21 was US$3.86/lb.

As expected, preliminary 1Q21 gold production was lower than 4Q20, mainly due to mine sequencing at Carlin and Cortez as well as lower grades at Pueblo Viejo, in line with the mine and stockpile processing plan as the development of the expansion project advances. Lower grades and production from Tongon, consistent with the updated extension of the mine life to 2023, were offset by higher grades at Loulo-Gounkoto. As previously guided, the company’s gold production in 2H21 is expected to be higher than 1H21. Accordingly, 1Q21 gold cost of sales per ounce is expected to be slightly higher, total cash costs per ounce are expected to be 2 – 4% higher and all-in sustaining costs per ounce are expected to be 8 – 10% higher than 4Q20.

Preliminary 1Q21 copper production was 22% lower than 4Q20 as expected. Copper sales were 5% higher than the previous quarter as Lumwana sold a portion of its stockpiled concentrate. The company continued to expect its copper production in 2H21 to be stronger than the 1H21, mainly driven by higher grades from Lumwana. 1Q21 copper cost of sales per pound is expected to be 1 – 3% higher and C1 cash costs per pound are expected to be in line with the prior quarter. Copper all-in sustaining costs per pound are expected to be 6 – 8% lower than 4Q20, largely due to the increased sales.

Barrick will provide additional discussion and analysis regarding its 1Q21 production and sales when the company reports its quarterly results before North American markets open on 5 May 2021.

Read the article online at: https://www.globalminingreview.com/finance-business/16042021/barrick-on-track-to-achieve-2021-production-targets/