Record Q3 results for Barrick Gold

Mining companies are breaking records all over the place in the third quarter of this year and Barrick Gold (ABX-T, ABX-N) is no exception.

The major, with a portfolio of long-life, low-cost properties on four continents, reported 50% growth in operating margins and record net income and operating cash flow, demonstrating its leverage to a gold price that continues to reach new levels.

Net income struck a record US$837 million (US$0.85 per share), while operating cash flow hit an all-time high of US$1.28 billion, up 40% from the US$911 million in the year-earlier period.

Quarterly gold production of 2.06 million ounces was also ahead of the company’s forecasts and at lower than expected total cash costs of US$454 per oz.

Cash margins rose 52% in the third quarter to US$783 per oz., up from US$515 per oz. in the same quarter of 2009. Net cash margins jumped to US$888 per oz. from US$600 per oz., a gain of 48%.

The company, which has operating mines and development projects in the U.S., Peru, Tanzania, Chile, Argentina, Australia, and Canada, authorized a fourth quarter dividend of 12¢ per share, a 20% increase from the previous dividend on an annualized basis.

Barrick ended the quarter with a cash balance of US$4.3 billion and US$1.5 billion in undrawn credit.

Full-year production is forecast to reach 7.65-7.85 million oz. gold at total cash costs of about US$455 per oz. and Barrick expects annual production will reach 9 million oz. gold within five years, once its Pueblo Viejo3and Pascua-Lama projects enter production.

In Toronto at presstime Barrick was trading at $48.90 per share. In New York Barrick was trading at US$47.98 per share.  UBS Investment Research has a 52-week target price on the stock of US$65 per share.