BARRICK Gold Corporation reported first half gold production of 2.4 million ounces, midway of the Canadian headquartered firm’s 2020 guidance of 4.6 million to five million oz. This was despite the impact of COVID-19 lockdowns which resulted in lower second quarter production compared to the first three months of the financial year.
The pandemic has had a positive effect on the gold price however. Amid stimulus efforts by central banks, investors have flocked to gold which has value preservation characteristics during time of geopolitical stress. Barrick’s average gold price received for the second quarter was $1,711/oz which compares to an average of $1,589/oz in the first quarter.
Preliminary second quarter gold sales of 2.44 million oz were in line with the previous quarter, and higher than production largely owing to the resumption of exports of concentrate that had been stockpiled in Tanzania.
Second quarter gold cost of sales per ounce were expected to come in some 4% to 6% higher whilst total cash costs per ounce were forecast at 2% to 4% higher. All-in sustaining costs would be 7% to 9% higher than in the first quarter of 2020.
Mark Bristow, CEO of Barrick, said the numbers positioned Barrick to achieve its guidance for the financial year.
“Comprehensive programs to counter the spread of COVID-19 are in place at all of Barrick’s operations and it continues to take the necessary steps to manage the impact of the pandemic on its business,” the company said.
Barrick is due to report its second quarter and half year results on August 10.
