Barrick on track to meet 2020 production guidance after producing 1.16m oz in Q3

BARRICK Gold said preliminary third quarter gold sales were slightly higher than the previous quarter, and exceeded production following the export of the remaining stockpiled concentrate in Tanzania.

Sales totalled 1.25 million ounces of gold and 116 million pounds of copper whilst production totalled 1.16 million oz and 103 million pounds of copper. This took group gold  production for the nine month period to 3.6 million oz in line with full-year guidance of 4.6 million oz of gold.

Export of stockpiles from Barrick’s Tanzanian assets follow a settlement with the East African country’s government of a tax dispute with the former owner of the assets, Acacia Mining, which Barrick bought out. As part of the dispute, the government prevented Acacia from selling gold in concentrate.

As part of the agreement with the Tanzanian government, Barrick formed a joint venture called Twiga Minerals in order to share the proceeds from the mines. Twiga announced earlier this week it had paid a maiden interim cash dividend of $250m.

Barrick said it achieved an average selling price of $1,909 per ounce for its gold in the third quarter while the average market price for copper in the third quarter was $2.96 per pound.

Copper production and sales were lower than in the previous quarter owing to plant maintenance at the Lumwana facilities in Zambia. Copper all-in sustaining costs per pound are expected to be six to 8% higher than the second quarter of 2020 as a result of higher capitalised stripping at Lumwana, Barrick said.

The group is due to present its third quarter numbers on November 5.

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