A consistently outstanding performance at its Goldstrike mine in Nevada helped American Barrick Resources (TSE) post significant increases in production, earnings and cash flow for the first six months of 1993.
Net income rose 72% to US$103.2 million (US36 cents per share) on revenue of US$319.3 million for the six months ended June 30. This compares with earnings of US$59.9 million (US21 cents per share) on revenue of US$197 million in the same period a year ago.
Gold production was substantially higher at 762,665 oz., up from 495,237 oz. in the comparable period of 1992. The rise was caused by a 70% increase in production at Goldstrike; the mine produced 664,717 oz. gold in the first half at an average sulphide grade of 0.28 oz. gold per ton.
Barrick also continued to benefit from its flexible hedging program, realizing an average price of US$410 per oz., compared with the Commodity Exchange of New York average of US$345 per oz.
Barrick President Robert Smith attributed the excellent first-half results to several factors, including: processing of high-grade ore at Goldstrike; the strong performance of the Mercur mine in Utah and the Holt-McDermott mine near Kirkland Lake, Ont.; and the hedging program.
Barrick’s operating costs of US$172 per oz. (versus US$184 per oz. a year ago) reflect a greater amount of low-cost production from Goldstrike and the improved performance at Holt-McDermott, where operating and cash costs per oz. decreased 58% to US$248 per oz.
Net income for the 3-month period rose 56% to US$57.2 million (US20 cents per share) compared with US$36.8 million (US13 cents per share) in the same period a year earlier.
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