Mining company Barrick Gold reported on Thursday that third-quarter profit fell 18% from the previous three months, dragged down by weak gold and copper prices.
Gold prices have fallen from record highs set at the start of the pandemic crisis as a result of vaccinations and the reopening of the global economy, while copper prices have fallen from their 2021 highs because of weak Chinese demand.
Barrick's realised gold fell 2.7 per cent to $1771 an ounce in the quarter, while copper fell nearly 13 per cent to $3.98 a pound from the second quarter.
CEO Mark Bristow said Barrick's production forecast for 2021 was in the lower half of the previous estimate of 4.4 million to 4.7 million ounces. this is due to pandemic-related disruptions, plant closures in Nevada and other challenges in the first half of this year.
Speaking of the continued consolidation of the gold industry, Bristow said mergers and acquisitions were not always the right way to show value, although he acknowledged that Barrick's share price had "huge upward potential"
Canada's Agnico Eagle Mines Ltd agreed in September to buy rival Kirkland Lake Gold Ltd, for C $13.51 billion in stock, a move defined by Bristow as "necessary integration".
The company said its total gold maintenance cost, an industry indicator of total production-related costs, fell 4.8 per cent to $1034 an ounce, while the total maintenance cost of copper fell 5.1 per cent to $2.60 per pound.
Gold production rose 4.9% to 109 million ounces from the second quarter, while copper production rose 4.16% to 100 million pounds.
Adjusted earnings for the quarter ended Sept. 30 were 24 cents a share, beating analysts' expectations of 23 cents, according to Refinitiv IBES.
