Barrick doubles first-quarter earnings

Significant increases in production, earnings and cash flow are reported by American Barrick Resources (TSE) for the first quarter.

Net income doubled to US$46.1 million (16 cents per share) for the three months ended March 31, compared with US$23.2 million (8 cents per share) in the same quarter last year. By comparison, net income in the fourth quarter of 1992 was US$65.5 million (45 cents per share).

Gold production was 354,839 oz. for the first quarter, up from 202,505 oz. in the comparable period last year. The company’s gold price-hedging program enabled it to realize an average price of US$410 per oz. on its gold sales compared with the Comex average for the quarter of US$330 per oz. President Robert Smith said “the excellent performance of the Goldstrike mine (in Nevada) resulting from higher-grade sulphide ore, combined with the company’s gold price-hedging program, generated the substantially higher earnings and cash flow in the first quarter.”

In the first quarter, sulphide grade at Goldstrike averaged 0.31 oz. per ton. Operating costs for the period decreased to US$174 per oz. from US$199 a year ago. The decrease reflects the mining of higher-grade ore and the increase in production to 307,773 oz. from 151,838 oz. a year ago. The final three autoclaves, for oxidizing refractory gold ore, were commissioned smoothly at Goldstrike in the first quarter. Six autoclaves with a combined capacity of more than 15,000 tons per day are now operating. The additional capacity should help Barrick achieve its production target of 1.5 million oz. in 1993.