Barrick Gold’s Q2 Production Rises, Maintains 2024 Guidance
Barrick Gold has announced preliminary Q2 production results, reporting 948,000 ounces of gold and 43,000 tonnes of copper. The company also disclosed Q2 sales figures of 956,000 ounces of gold and 42,000 tonnes of copper. Barrick reiterated its expectation of increasing gold and copper production each quarter throughout 2024, with a significant uptick anticipated in the second half of the year, aligning with its full-year guidance.
The average market price for gold during Q2 stood at $2,338 per ounce, while copper averaged $4.42 per pound.
Barrick's Q2 gold production saw a boost compared to Q1, attributed to several factors: increased output at Turquoise Ridge following maintenance completion at the Sage autoclave in Q1, successful ramp-ups at Porgera, and notable production hikes at Tongon, North Mara, and Kibali. However, these gains were somewhat offset by planned lower production at Cortez and Phoenix. Production at Pueblo Viejo remained stable sequentially, as the operation focused on ramping up throughput and optimizing recovery rates for the second half of 2024.
In terms of costs, Q2 gold cost of sales per ounce and total cash costs per ounce are both expected to rise by 0 to 2% compared to Q1. Without the Q2 gold price increase and the resulting higher royalties, total cash costs per ounce would have been lower than in Q1. All-in sustaining costs per ounce are anticipated to increase by 1 to 3%, but are expected to decline in the year's second half as production ramps up.
For copper, preliminary Q2 production surpassed Q1 levels, primarily due to higher grades and recoveries at Lumwana, following a ramp-up in stripping activities and a planned Q1 shutdown. Compared to Q1 2024, Q2 copper cost of sales per pound is projected to be 4 to 6% lower, with C1 cash costs per pound expected to drop by 8 to 10%. However, all-in sustaining costs per pound are likely to rise by 1 to 3%, mainly due to increased waste stripping at Lumwana. Similar to gold, copper costs are expected to decrease in the second half of the year as production increases.
