The mining sector may see renewed investor interest as Barrick Gold, the world’s second-largest gold producer, announced a rise in gold production for the second quarter, coinciding with prices nearing all-time highs.
On Tuesday, Barrick Gold (NYSE)(TSX) reported preliminary estimates of 948,000 ounces of gold and 43,000 tonnes of copper produced, along with sales of 956,000 ounces of gold and 42,000 tonnes of copper during the quarter. The average market price for gold in Q2 stood at $2,338 per ounce, while copper averaged $4.42 per pound.
This production reflects an increase from the first quarter, which saw outputs of 940,000 ounces of gold and 39,000 tonnes of copper. Barrick expects production to progressively rise throughout 2024, particularly in the second half of the year, and remains on track to meet its annual guidance for both gold and copper.
Factors contributing to the production boost include heightened activity at the Turquoise Ridge site following maintenance on the Sage autoclave, a successful ramp-up at Porgera, and significant gains at Tongon, North Mara, and Kibali.
However, Barrick also noted a rise in costs. Compared to Q1, gold cost of sales per ounce and total cash costs per ounce are projected to increase by 0 to 2%. The company indicated that, without the rise in gold prices and associated royalties, total cash costs per ounce would have been lower than in Q1. All-in sustaining costs per ounce are expected to be 1 to 3% higher, although costs are anticipated to decrease in the latter half of the year as production accelerates.
