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2011 was an excellent year for Barrick

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Barrick Gold Corporation (USA) (NYSE:ABX) Reports Q4 2011 Financial and Operating Results

  • Reported net earnings for Q4 were $959 million ( $0.96 per share) compared to $961 million ( $0.97 per share) in the prior year period. Adjusted net earnings rose 15% to $1.17 billion ( $1.17 per share)(1) from $1.02 billion ( $1.02 per share) in the prior year period, primarily reflecting higher realized gold prices and higher copper sales volumes. Q4 operating cash flow increased 41% to $1.22 billion and adjusted operating cash flow was $1.30 billion (1). Gold cash margins increased 25% to $1,159 per ounce(1) in Q4 from $928 per ounce in the prior year period and net cash margins rose 18% to $1,282 per ounce(1) from $1,090 per ounce in the prior year period.
  • Full year adjusted net earnings increased 33% from $3.52 billion in the prior year to $4.67 billion ( $4.67 per share), demonstrating the Company’s strong gold price leverage, and translating to a higher return on equity of 22%(1) from 20% in 2010. Adjusted operating cash flow rose 8% to $5.68 billion from $5.24 billion in the prior year. Reported net earnings and operating cash flow in 2011 increased 25% and 16% to $4.48 billion ( $4.49 per share) and $5.32 billion , respectively, compared to the prior year, and were Company records.
  • Q4 gold production of 1.81 million ounces at total cash costs of $505 per ounce(1) or net cash costs of $382 per ounce(1) included a strong performance from the North America region. Full year gold production of 7.68 million ounces at total cash costs of $460 per ounce met original guidance while net cash costs of $339 per ounce were below original guidance. Copper production of 451 million pounds in 2011 also met guidance at total cash costs of $1.75 per pound(1), which were slightly above guidance.
  • 2012 gold production is anticipated to be 7.3-7.8 million ounces at total cash costs of $520-$560 per ounce or net cash costs of $400-$450 per ounce(2), positioning Barrick as one of the lowest cost senior gold producers. Copper production for 2012 is expected to be 550-600 million pounds at total cash costs of $1.90-$2.20 per pound.

“2011 was an excellent year for Barrick,” said Aaron Regent, President and CEO. “We met our production and cost targets, enabling us to maximize the benefits of higher gold prices and realize record earnings and cash flow. We advanced our world-class projects, Pueblo Viejo and Pascua-Lama, which are scheduled to begin contributing low cost ounces in 2012 and 2013. We replaced our reserves, and our growing high grade gold discovery in Nevada, Red Hill/Goldrush, clearly demonstrates the value that a focused and disciplined exploration program can create. We added two quality copper mines to our portfolio and significantly expanded the copper reserves and resources at Lumwana. Finally, we continue to strengthen and be recognized for our CSR practices which are a critical component of our success.”

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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