Barrick posts profit jump, flags significant work ahead on Acacia – by Nichola Saminather and Shanti S Nair (Reuters U.S. – August 12, 2019)

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(Reuters) – Barrick Gold Corp (ABX.TO) (GOLD.N) reported quarterly adjusted profit that nearly doubled on higher production on Monday, and said it has a “great deal of work” ahead resolving problems around its African unit, whose buyout the company expects to complete next month.

Barrick also said it plans to begin the sale process for its 50% stake in the Kalgoorlie operation in Western Australia in the third quarter. Newmont Goldcorp (NEM.N) owns the remainder.

The world’s second-largest gold producer reported adjusted profit of $154 million, or 9 cents per share, in the second quarter ended June 30, up from $81 million, or 7 cents per share, a year earlier.

Barrick expects 2019 gold production to be at the higher end of its 5.1 million to 5.6 million range, and all-in sustaining costs to be at the lower end of its $870 to $920 per ounce range. Barrick’s shares rose 2.1% to C24.47 in Toronto.

The Toronto-based company is in the process of integrating operations following a flurry of activity over the past few quarters, from the acquisition of Randgold Resources late last year to a joint venture in Nevada with the world’s biggest gold producer, Newmont Goldcorp, to the buyout of Tanzania-focused unit Acacia Mining Plc (ACAA.L).

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