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[Au]Barrick Gold Reports Smaller Adjusted 2Q Profit, Trims Dividend
Aug 6,2015 16:21CST
company news
Source:SMM
Barrick Gold Corp. (NYSE, TSX: ABX) posted a smaller adjusted net profit in the second quarter compared to a year ago and also trimmed its dividend, the company announced late Wednesday.

By Paul Ploumis06 Aug 2015 Last updated at 02:20:58 GMT

(Kitco News) - Barrick Gold Corp. (NYSE, TSX: ABX) posted a smaller adjusted net profit in the second quarter compared to a year ago and also trimmed its dividend, the company announced late Wednesday.

The world’s largest gold-mining company lowered its guidance for gold production in 2015 but also chopped its outlook for all-in sustaining costs. The board of directors reduced the quarterly dividend from 5 cents per share to 2 cents per share.

Meanwhile, in anticipation of continued weakness in gold prices, Barrick said officials are targeting $2 billion in reduced expenditures by the end of 2016. Efforts continue to reduce debt.

Adjusted second-quarter net earnings were $60 million, or a nickel per share, compared to $159 million, or 14 cents, in the same period a year ago. Lower adjusted net earnings reflect lower gold sales and lower realized gold and copper prices compared to the prior-year period, the company reported.

Barrick had a net loss for the quarter of $9 million, or a penny per share, compared to a net loss of $269 million, or 23 cents, in the prior-year quarter. Significant special items included $22 million in impairment charges primarily related to power assets at Pueblo Viejo in the Dominican Republic, $30 million in unrealized foreign currency translation losses, $17 million in costs tied to closure of the Perth office, and a $15 million positive adjustment reflecting the increase in the discount rate used to calculate the provision for environmental remediation at closed mines.

Production in the second quarter was 1.45 million ounces of gold at all-in sustaining costs of $895 per ounce.

Full-year gold production is now expected to be between 6.1 million and 6.4 million ounces, down from 6.2 million to 6.6 million previously. Barrick said this reflects the impact of asset sales. All-in sustaining cost guidance for 2015 has been reduced to $840-$880 per ounce from $860-$895 per ounce previously.

The board cut the dividend to “increase financial flexibility” at a time of weakening prices of precious metals, the company said. The dividend will be paid on Sept. 15 to shareholders of record at the close of business on Aug. 31.

Courtesy: Kitco News


Barrick Gold Corp.
GOLD

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