Copper and higher gold grades to drive production guidance
Toronto — Barrick Gold Corporation has reported preliminary Q3 sales of 1.00 million ounces of gold and 120 million pounds of copper, as well as preliminary Q3 production of 0.99 million ounces of gold and 123 million pounds of copper. Access to high grade ore that was previously expected in late Q3 at Nevada Gold Mines is now scheduled for Q4, which should drive a strong finish to the year.
Barrick remains on track to achieve 2022 production guidance, with gold expected to be at the low end of the range and copper expected to be at the midpoint.
The average market price for gold in Q3 was $1,729 per ounce and the closing price at the end of the quarter was $1,672 per ounce. The average market price for copper in Q3 was $3.51 per pound. The Company’s third quarter realized copper price2 is expected to be 7 to 9% below the third quarter average market price for copper, primarily as a result of provisional pricing adjustments3 that reflect the decrease in the copper price near the end of Q3.
Preliminary Q3 gold production was lower than Q2 as a strong performance from Pueblo Viejo was offset by lower production at Veladero, Carlin and Turquoise Ridge. In addition, production at Long Canyon was lower than Q2 following the completion of Phase 1 mining in May 2022, as previously disclosed. Compared to Q2, Q3 gold cost of sales per ounce4 is expected to be in line with the prior quarter, while total cash costs per ounce5 and all-in sustaining costs per ounce5 are both expected to be 3% to 5% higher.
Preliminary Q3 copper production was higher than Q2, driven by strong performance from Lumwana. Compared to Q2, Q3 copper cost of sales per pound4, C1 cash costs per pound5 and all-in sustaining costs per pound5 are all expected to be 8 to 10% higher, mainly due to slightly lower grade and a higher strip ratio at Lumwana, as well as higher input costs at Zaldívar.
