Mining major, Barrick Gold Corporation, yielded stronger Q2 output of 1.04 million ounces of gold and 120 million pounds of copper as well as sales of 1.04 million ounces of gold and 113 million pounds of copper.

Following previous production guidance, Barrick’s gold production in 2022 is expected to increase through the year, and with the stronger Q2 performance, it remains on track to achieve 2022 gold and copper guidance.

The average market price for gold in Q2 was $1,871 per ounce. The average market price for copper in Q2 was $4.32 per pound, however the closing price at the end of Q2 was $3.83 per pound.

The Company’s second quarter realized copper price is expected to be 13-15 per cent below the average second quarter market price for copper, primarily as a result of provisional pricing adjustments that reflect the decrease in the copper price near the end of Q2 2022.

In line with expectations, preliminary Q2 gold production was higher than Q1 2022 due to a stronger performance across the portfolio, particularly at Carlin, Turquoise Ridge, Veladero, Bulyanhulu and North Mara.

“This was partially offset by lower production at Cortez due to mine sequencing as it transitions from the end of open pit mining at Pipeline to a new phase at Crossroads, which is expected to underpin stronger performance for the asset in the fourth quarter of 2022.”
Press Statement

graphite — mining equipment in use in mining operation

Production Costs to Slow Down

Compared to Q1, Q2 2022 gold cost of sales per ounce is expected to be 1 per cent to 3 per cent higher, total cash costs per ounce are expected to be 2 per cent to 4 per cent higher and all-in sustaining costs per ounce are expected to be 3 per cent to 5 per cent higher.

Preliminary Q2 2022 copper production was higher than Q1 2022, driven by Lumwana as according to plan, however Q2 copper sales were in line with the prior quarter due to the timing of shipments.

Compared to Q1 2022, Q2 2022 copper cost of sales per pound is expected to be 4 per cent to 6 per cent lower and cash costs per pound are expected to be 5 per cent to 7 per cent lower. Copper all-in sustaining costs per pound are expected to be in line to 2 per cent higher than Q1 2022.

As planned, Barrick Gold will provide additional discussion and analysis regarding its second quarter 2022 production and sales when the Company reports its quarterly results before North American markets open on August 8, 2022.

Recall that, in Q1 2022, Barrick recorded a decline in production compared to the previous year’s quarter. The company noted that its mines struggled with the prolonged effect of the pandemic-led. This led to a rise in expenses as the company implemented prevention measures to ensure the safety of workers and surrounding communities, with supply chain issues due to global restrictions on movement adding to the company’s woes.