Canadian miner Barrick Gold Corp. GOLD reported second-quarter earnings of 11 cents per share on Monday, missing consensus estimates by 1 cent.
Revenue of $2.06 billion grew 20.5% year over year, but fell $20 million short of expectations.
The market was disappointed with the results, so the stock declined 0.99% to close at $17.96 on Monday.
Revenue growth was attributed to a 27% rise in gold production to 1.353 million ounces as a result of strong performances at its 50% interest in the Veladero mine in Argentina and its 80% interest in the Loulo-Gounkoto mine in Mali.
A slight 0.3% increase in the average realized gold price to $1,317 per ounce sold and nearly 17% hike in the production of copper to 97 million pounds also contributed to growth.
Barrick also produced the metal from its Nevada Gold Mines joint venture with Newmont Goldcorp Corp. NEM and from other mineral interests located in the Dominican Republic, Western Australia, Papua New Guinea, Canada and additional operations in Mali.
The asset portfolio also includes producing mines in Montana, Peru, Chile, Zambia, Ivory Coast, Congo, Saudi Arabia as well as 63.9% equity stake in Acacia Mining PLC LSE:ACA with its assets in Tanzania.
Despite improved throughput, the all-in sustaining cost rose 1.5% to $869 per ounce of gold due to higher cost of sales and mine site sustaining capital expenditures.
As of June 30, the balance sheet had $2.15 billion in cash on hand and equivalents and $1.93 billion in gold inventories. Property, plant and equipment were valued at $16.9 billion and total debt amounted to $7.96 billion. Total equity was worth about $18.5 billion.
Barrick is optimistic about output and costs for full-year 2019. The miner forecasts gold production will be at the upper end of the guidance range of 5.1 million to 5.6 million ounces and the all-in sustaining cost in the lower end of the guidance of $870 to $920 per ounce.
Copper production is anticipated to range between 375 million and 430 million pounds at an all-in sustaining cost of $2.40 to $2.90 per pound.
President and CEO Mark Bristow said the joint venture with Nevada Gold Mines is in the process of delivering synergies of up to $500 million every year for the first five years of the deal. The joint venture was launched last month and is operated by Barrick.
Sell-side analysts recommend holding Barrick Gold with an average price target of $17.36 per share.
Following a 69% upside over the past year through Aug. 12, the share price is now significantly above the 200-, 100- and 50-day simple moving average lines. The 52-week range is $9.53 to $18.66 and the market capitalization is $31.54 billion.
The 14-day relative strength index of 59 suggests the stock is neither oversold nor overbought.
Disclosure: I have no positions in any securities mentioned.
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