-=Barrick Gold (ABX) reported earnings on Wed 14 Feb 2018 (a/h)

Barrick Gold beats by $0.02, reports revs in-line; guides FY18 production down 6-15%

• Reports Q4 (Dec) earnings of $0.22 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.20; revenues fell 3.9% year/year to $2.23 bln vs the $2.21 bln Capital IQ Consensus. Gold production in the fourth quarter was 1.34 million ounces, at a cost of sales applicable to gold3 of $801 per ounce, and all-in sustaining costs4 of $756 per ounce. Copper production in the fourth quarter was 99 million pounds, at a cost of sales3 of $1.79 per pound, and all-in sustaining costs6 of $2.51 per pound.
• "In 2018, we expect to produce 4.5-5.0 million ounces of gold, at a cost of sales applicable to gold of $810-$850 per ounce, and all-in sustaining costs of $765-$815 per ounce. Higher cost guidance for 2018 primarily reflects lower anticipated gold production from Barrick Nevada, Pueblo Viejo and Veladero, increased processing of higher-cost inventory, and higher costs at Acacia.
• We expect first quarter production of around one million ounces at costs that will be proportionately higher than those anticipated for the remainder of the year, largely due to lower grades at Barrick Nevada, and the timing of planned maintenance at Pueblo Viejo.
• Total attributable capital expenditures for 2018 are expected to be in the range of $1.40-$1.60 billion. This includes project capital expenditures of $450-$550 million, an increase of roughly $270 million compared to 2017, as we increase investments in the future of our business. Attributable mine site sustaining capital expenditures are expected to be in the range of $950 million-$1.1 billion, compared to $1.1 billion in 2017, reflecting our ongoing focus on capital efficiency and discipline.
• Based on our current asset mix, from 2019 to 2022 we expect average annual gold production to be between 4.2-4.6 million ounces, at an average cost of sales of $850-$980 per ounce, and average all-in sustaining costs of $750-$875 per ounce, representing a stable base case for our business. This includes contributions from feasibility level projects at Goldrush, Cortez Deep South, Turquoise Ridge, and Lagunas Norte-but assumes no contribution from Pascua-Lama, Donlin Gold, Cerro Casale, or Alturas.
• Investor Day February 22