Barrick Gold Corp. production falls due to mine sales, costs also down – by Sunny Freeman (Financial Post – January 26, 2017)

Barrick Gold Corp.’s annual gold production in 2016 fell by nearly 10 per cent and copper production was down about 19 per cent compared to the year before, largely due to the company’s decision to sell off some non-core mines, the company announced Wednesday.

The Toronto-based mining giant said it produced about 5.5 million ounces of gold at its 16 gold mines — which was at the high end of its 5.25 to 5.55 million ounce guidance. But that was short of the 6.1 million ounces mined in 2015.

Production was impacted by the sale of some of its smaller mines such as Cowal, Round Mountain, Bald Mountain, Ruby Hill and the sale of half its interest in Porgera, the company said. Still, production at its core mines, including Cortez and Goldstrike, rose slightly from 2015.

The company, which gives projections in U.S. dollars, also estimates cost of sales for gold will come in at the low end of its guidance range between US$800 to US$850 per ounce for 2016. That helped curb the impact of the reduced production on its bottom line.

Full-year all in sustaining costs are expected to be at the low end of its guidance between US$740 and US$755 per ounce for gold. It aims to have that measure —the industry standard— down to US$700 per ounce by 2019.

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