GOLD: Barrick Q1 report cuts 2017 guidance

TORONTO – Barrick Gold reported strong first quarter results, but has cut its guidance for 2017 following the sale of a 50% interest in the Veladero gold mine in Argentina. [caption id="attachment_1003718173" align="alignleft" width="300"] Barrick employs drones at Veladero to improve en environmental monitoring.[/caption] The company had first quarter revenues of $1.99 billion (all U.S. dollars) and earnings attributable to shareholders of $679 million ($0.58 per share). Free cash flow was put at $161 million. Total gold production during the quarter was 1.31 million oz. at an all-in sustaining cost of $722 per oz., or $833 per oz. sold. Total debt was reduced by $178 million in the same reporting period. Previously, Barrick estimated 2017 production would be between 5.6 million and 5.9 million oz. With the sale of half the Veladero mine to Shandong Gold, Barrick’s share of that mine’s output is reduced. The restated, lower 2017 guidance is 5.3 million to 5.6 million oz. of gold. The guidance figure assumes normal leaching operations will resume in June; they were suspended by the Argentine government following a recent pipeline leak. Veladero produced 544,000 oz. of gold in 2016. Barrick’s 2016 annual and quarterly reports are available at www.Barrick.com.