Barrick Gold Corporation GOLD has announced preliminary third-quarter production of 943,000 ounces of gold and 48,000 tons of copper. It also reported preliminary sales of 967,000 ounces of gold and 42,000 tons of copper. GOLD continues to forecast a considerably higher fourth quarter to bring 2024 production in line with its full-year gold and copper expectations. The average market price for gold in the third quarter was $2,474 per ounce, while the average market price for copper was $4.18 per pound.

Preliminary third-quarter gold production was consistent with the prior quarter. Pueblo Viejo production improved 23% sequentially due to continuing plant optimization, while North Mara had a stronger quarter due to higher grades. Carlin's Gold Quarry roaster expansion, completed during a third-quarter shutdown, is projected to drive increased throughput and recoveries in the fourth quarter. Production from Turquoise Ridge improved from the second quarter, with stronger underground mining performance more than compensating for the Sage autoclave's planned shutdown in the third quarter. At Kibali, underground development in the third quarter provided access to more high-grade underground headings, which are projected to be supported by higher open pit grades and volumes to deliver a stronger performance in the fourth quarter.

In comparison to the second quarter, the third-quarter gold cost of sales per ounce is expected to be 1-3% higher, total cash costs per ounce 3-5% higher and all-in sustaining costs per ounce 0-2% more, reflecting greater royalties from the higher gold price received.

Preliminary third-quarter copper output was higher than the prior quarter, owing mostly to increased grades and recoveries at Lumwana following improved ore access caused by a ramp-up in stripping efforts in the second quarter, with further improvements expected in the fourth quarter. Third-quarter copper cost of sales per pound is projected to be 5-7% higher from the prior quarter, C1 cash expenses per pound 13-15% higher and all-in sustaining costs per pound 2-4% lower, owing principally to a reduction in capitalized waste stripping at Lumwana.

Barrick’s shares have gained 22.4% in the past year compared with a 40.7% rise in the industry.

Image Source: Zacks Investment Research

Zacks Rank & Other Key Picks

GOLD currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, IAMGOLD Corporation IAG and Centrus Energy Corp. LEU. 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 151.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for IAG’s current-year earnings is pegged at 52 cents, indicating a year-over-year rise of 477.8%. The Zacks Consensus Estimate for IAG's current-year earnings has been going up in the past 30 days. IAG, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 200%. The company's shares have rallied roughly 118.3% in the past year.

The Zacks Consensus Estimate for Centrus’ current-year earnings is pegged at $3.06 per share. LEU, a Zacks Rank #1 stock, beat the consensus estimate in three of the last four quarters while missed once, with the average earnings surprise being 107.1%. LEU has rallied around 52.9% in the past year.

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Carpenter Technology Corporation (CRS) : Free Stock Analysis Report

Iamgold Corporation (IAG) : Free Stock Analysis Report

Barrick Gold Corporation (GOLD) : Free Stock Analysis Report

Centrus Energy Corp. (LEU) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research