Barrick Gold misses profit estimates on higher costs, lower Nevada production

(Reuters) -Canada's Barrick Gold (NYSE:GOLD ) missed Wall Street estimates for third-quarter profit on Thursday, weighed down by higher costs and lower production at its Nevada mines.

Total (EPA:TTEF ) gold output at Nevada Gold Mines fell to 385,000 ounces in the July-September quarter, compared with 401,000 ounces in the preceding three months, the company reported in October.

Meanwhile, all-in sustaining costs (AISC) for gold, an industry metric reflecting total expenses, rose to $1,507 per ounce in the quarter, from $1,255 per ounce last year.

U.S.-listed shares slipped 1.6% in premarket trade.

Newmont, the world's biggest gold miner, also reported a rise in costs in the third quarter due to higher contractual labor costs.

Barrick's realized price for gold rose 29.4% to $2,494 per ounce during the quarter, tracking a rally in bullion prices following a 50 basis point rate cut by the U.S. Federal Reserve and safe heaven demand due to the conflict in the Middle East.

Copper AISC rose 10.5% year-over-year, even as it declined quarter-over-quarter.

The Toronto-based miner reiterated it was on track for an improved performance in the fourth quarter with production ramp-ups at Pueblo Viejo at the Dominican Republic and higher output from its Nevada mines.



Barrick said full-year production at its Loulo-Gounkoto project in Mali - where it is currently locked in a dispute related to an agreement with the government - would be at the top end of its forecast.

On an adjusted basis, the world's second-largest gold miner posted a profit of 30 cents per share for the quarter ended Sept. 30, compared to analysts' average estimate of 31 cents, according to data compiled by LSEG.

Source: Investing.com