Barrick Gold Earnings Top Estimates on Costs

Barrick Gold Corp., the world’s largest producer of the precious metal, reported profit that beat analysts’ estimates after costs were lower than expected.

Third-quarter net income fell to $125 million, or 11 cents a share, from $172 million, or 17 cents, a year earlier, Toronto-based Barrick said today in a statement. Earnings excluding one-time items were 19 cents a share, topping the 17-cent average of 23 estimates compiled by Bloomberg. Sales declined to $2.6 billion from $2.99 billion, exceeding the $2.49 billion average estimate.

Barrick is among gold producers that have reined in spending and delayed growth plans after the metal’s 28 percent decline last year. The company aims to cut its annual costs by $500 million this year, former Chief Executive Officer Jamie Sokalsky said July 31.

The company’s so-called adjusted operating costs were $589 an ounce, lower than the $607 average of six estimates, while all-in sustaining costs, a more comprehensive measure, fell to $834 per ounce, from $914 in the third quarter of 2013.

Barrick reduced its forecast for 2014 all-in sustaining costs to $880 to $920 per ounce, from a previous range of $900 to $940.

Barrick produced 1.65 million ounces of gold in the third quarter, compared with 1.85 million a year earlier and the 1.52 million average of four analysts’ estimates compiled by Bloomberg.

Gold futures averaged $1,282.12 in the quarter on the Comex in New York, 3.4 percent lower than a year earlier.

Sokalsky left last month, after Barrick announced his departure in July and named executives Kelvin Dushnisky and Jim Gowans co-presidents.

(Barrick scheduled a conference call to discuss the results for tomorrow at 9:30 a.m. New York time, accessible in North America at 1-888-789-9572 and for other callers at 1-416-695-7806. The passcode is 8055612.)

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