Canada’s Barrick Gold (TSX:ABX)(NYSE:GOLD), the world’s second-largest producer of the precious metal, has reported a first-quarter profit of $111 million for the January-March period, or six cents per share, about 33% below the nine cents per share analysts on average had expected.
The figure is also down from a profit of $158 million, or 14 cents per share, in the same quarter last year.
The Toronto-based miner, which keeps its books in U.S. dollars, said quarter on quarter comparisons were skewed by the recent and touted merge with Randgold at the start of the year.
Revenue, in fact, totalled $2.09 billion, up from $1.79 billion in the same quarter of 2018, while January-March gold production was up 8% to 1.367 million ounces from 1.049 million in the first quarter last year and 1.262 million in the fourth quarter.
The company also announced a dividend of 4 cents per share payable on June 17 to shareholders of record at the close of business on May 31.
Officials said this was in line with the commitment the company made when the $18.3 billion merger with Randgold was first mentioned last year.
“We have gone a long way towards integrating the organizations, streamlining the processes and ensuring that all the sites have the geological, operational and technical capability to meet their business objectives,” Mark Bristow, president and chief executive officer, said in the statement.
“We’re also well advanced in establishing our new joint venture with Newmont, which has been named Nevada Gold Mines. The organizational structures are being finalized and we’re working together with Newmont to realize the synergies and cost-reduction opportunities offered by the joint venture, which is scheduled for completion by the end of the second quarter.”
Bristow said Barrick is on track to meet its plans for the year. The company projected 2019 guidance of 5.1 million to 5.6 million ounces of gold at AISC of $870 to $920 an ounce.
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