Hurt by lower output at its Cortez and Carlin mines in Nevada, Miner Barrick Gold (ABX.TO), said on April 14 that the first-quarter production fell 17.7% from the previous three months.
Barrick said that due to depletion of stockpiled higher grade underground ore after the mechanical mill failure in the second quarter last year at a roaster facility, which processes the gold ore, gold output was lower at its Carlin and Cortez mines.
The Cortez and Carlin mines are part of Nevada Gold Mines, a joint venture between Newmont Corp (NEM.N) and Barrick.
Up from $1,795 per ounce in the prior quarter, the average market price for gold in the quarter was $1,877 per ounce, as highlighted by the company, which is scheduled to release its first-quarter results on May 4.
While all-in sustaining costs (AISC) for copper are expected to be 1% to 3% lower from the fourth quarter, Barrick said it expects the company’s AISC for gold, a key industry metric, to be 19% to 21% higher.
With supply-chain issues due to global restrictions on movement adding to their woes, miners have been hit hard by a pandemic-led rise in expenses as they implement prevention measures to ensure the safety of workers and surrounding communities.
Copper production in 2022 is expected to be higher in the second half. Nonetheless, its gold production is expected to increase through the year, as explained by Barrick.
Hurt by lower output at its Lumwana mine, the company’s copper production during the quarter was 101 million pounds, down 19.84% from the previous quarter, while total preliminary gold production was down 17.7% at 990 million ounces.
According to Refinitiv IBES, analysts on an average expected gold production to reach 1.025 million ounces.
In premarket trading, the company’s U.S.-listed shares, which have gained nearly 34% so far this year, were down 0.9%.