Barrick shows second quarter consistency, maintains dividend
JOHANNESBURG (miningweekly.com) – The world’s biggest gold mining company Barrick on Monday announced a maintained second-quarter dividend on production in line with the base set in the first three months of the year.
Barrick CFO Graham Shuttleworth said the second-quarter dividend of $0.04 a share reflected the stability of cash flows of the New York- and Toronto-listed company, which has assets in Argentina, Australia, Canada, Chile, the Dominican Republic, Papua New Guinea, Peru, Saudi Arabia, Tanzania, the United States and Zambia.
Strong performances at Loulo-Gounkoto in Mali and Veladero in Argentina helped to take total second-quarter gold production to 1.353-million ounces.
President and CEO Dr Mark Bristow said gold production for the year was expected to be at the upper end of the 2019 guidance range, with cost metrics at the lower end.
He said that Nevada Gold Mines, the joint venture launched on July 1, was on track to deliver synergies of up to $500-million a year in the first five years.
Net earnings were $0.11 a share, while debt net of cash was unchanged at $3.7-billion after payment of the first-quarter dividend. Adjusted net earnings of $0.09 a share were in line with consensus.
Following the end of the quarter, Barrick repurchased $248-million of outstanding debt due in 2020, saving interest of $12-million. Operating activities provided net cash of $434-million.
In the six months since the Barrick-Randgold merger was consummated, management had made enormous progress in building a business that would be a model of value creation for the mining industry.
In the first half of 2019, Barrick merged with Randgold, Newmont acquired Goldcorp, and then Barrick and Newmont pooled their Nevadan assets to create Nevada Gold Mines. African operations posted strong performances and an offer was made to acquire minority interests in Acacia.
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