- Barrick Gold (TSX:ABX) has announced its production and financial results for the first quarter of 2020
- The company posted a C$987 million drop in net earnings for the quarter on last year’s fourth quarter
- Barrick’s production was also down, contracting from 1.43 million gold ounces to 1.25 million ounces
- Dividends have been maintained at 7 cents quarterly
- Barrick Gold (ABX) is down 4 per cent at $38 per share with a market cap of $67 billion
Barrick Gold (TSX:ABX) has reported a drop in net earnings of C$987 million for the first quarter of 2020.
The company’s net earnings last year in the fourth quarter totalled $1.387 billion, or a per share net earning of 78 cents. The company this year posted net earnings of $400 million this quarter, or a 22 cent per share earning.
That represents a 71 per cent drop on net earnings over the quarter.
Gold production for the first quarter was 1.25 million gold ounces, down from the fourth quarter of 2019’s total of 1.43 million, which is on the lower end of guidance but still within Barrick’s projections.
The gold behemoth reduced their net debt 17 per cent to $1.95 billion. Operating cash flow increased to $889 million and free cash flow went to $438 million. These both represent increases on last year.
Adjusted net earnings per share reached 16 cents, which is just a cent off last year, and the quarterly dividend of 7 cents has been maintained.
Mark Bristow, President and CEO of Barrick Gold, said the company was on track in both finances and operations, despite the fact that the focus for most of the quarter had been on ensuring site safety in the face of the coronavirus.
“Our sustainability and regional teams have done a great job in taking timely action to introduce comprehensive and carefully considered measures at all our sites and offices to manage and mitigate any impacts of COVID-19 on our employees and contractors.”
“A key focus of this plan is on prevention, and all sites are working actively to head off an outbreak,” he said.
Barrick Gold (ABX) is down 4 per cent at $38 per share, as of 2:00pm EDT.