Barrick Gold's Operating Loss Peaked at $1.2 Billion in Q4 '18

SEATTLE (Scrap Monster): Canadian Barrick Gold- the world’s leading gold producer by volume has reported 2018 full year and fourth quarter results. The company reported huge quarterly loss, mainly on account of certain issues at two of its mines- Lagunas Notre, Peru and Veladero, Argentina.

The company reported operating loss of $1.2 billion in the fourth quarter of 2018. This compared with the loss of $314 million reported during the corresponding quarter in 2017. The loss includes $900 million in net impairment charges related to the Lagunas Notre mine. The higher government tax payment by the Veladero mine also contributed to the loss. The quarterly revenue dropped from $2.2 billion to $1.9 billion year-on-year. Also, the Q4 `18 gold production totaled 1.26 million ounces.

Barrick Gold generated annual revenues of $7.24 billion in 2018. The full-year gold production was in line with the earlier guidance at 4.53 million ounces at all-in sustaining cost of $806 per ounce. The 2018 adjusted net earnings were $409 million or $0.35 per share. The company reduced its total debt by 11% during the year.

The company predicted that costs are likely to surge higher by nearly 8% in 2019 to $870-$920 per ounce, partly on account of end of mining at its low-cost Cortez Hills, Nevada open pit mine during the initial half of the year. The gold output in 2019 is likely to total between 5.1 and 5.6 million ounces during the current year.

In line with its vision to be the world’s most valued gold mining business, Barrick Gold targets to focus on optimizing its existing operations and pursuing new opportunities for development.