Barrick’s Q1 2017 Earnings Preview: Higher Gold Prices And Lower Cost Operations To Translate Into Earnings Growth

April 20th, 2017 by Trefis Team

Barrick Gold will release its Q1 2017 earnings result on April 24 and conduct a conference call with analysts the next day. [1] We expect the company to report an improvement in its earnings driven by higher gold prices and the impact of lower cost operations.

Gold prices surged in Q3 2016 amid the uncertainty caused by the unexpected outcome of the UK’s EU referendum and an increase in the safe-haven investment demand for the yellow metal. While prices declined in anticipation of the Fed’s interest rate hikes in December of last year and March of this year, they still averaged higher in Q1 2017 as compared to the corresponding period of last year.

Besides higher gold prices, Barrick Gold’s Q1 earnings are likely to benefit from a reduction in the company’s operating costs. A combination of operational improvements and the sale of high-cost non-core assets has led to a reduction in the costs of the company’s gold mining operations, as illustrated by the comparison between the company’s cash costs in Q1 2016 and the guidance for 2017. The following tables summarize our expectations from Barrick’s Q1 2017 results.

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ABX Q1 2017 Earnings Preview

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

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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Notes:
  1. Barrick Reschedules First Quarter 2017 Earnings Release, Barrick Gold News Release [↩]