Barrick Gold’s Q2 2016 Earnings Preview: Higher Gold Prices And Cost Reduction Initiatives To Boost Results

July 25th, 2016 by Trefis Team

We expect Barrick Gold to report a significant year-over-year improvement in its Q2 earnings, as a result of an improved gold pricing environment and the success of the company’s cost reduction initiatives. A surge in the investment demand for gold, resulting from concerns over global economic growth and the uncertainty created by the outcome of the UK’s EU referendum, has translated into a rally in gold prices. Moreover, higher macroeconomic uncertainty has lowered the chances of an interest rate hike by the Fed this year, which has further boosted prices of the yellow metal. Adding to the positive impact of the improvement in the pricing environment has been the success of the company’s cost reduction initiatives, with a combination of the sale of high-cost mines and operational improvements translating into a lower all-in sustaining cost guidance for the year. Considering all these factors, we expect Barrick Gold to report strong Q2 2016 results.

Have more questions about Barrick Gold? See the links below.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Barrick Gold

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