Barrick Gold (NYSE:GOLD) Corporation GOLD recorded net earnings (on a reported basis) of $685 million or 39 cents per share in fourth-quarter 2020, down from $1,387 million or 78 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share surged 105.9% year over year to 35 cents. The figure also beat the Zacks Consensus Estimate of 31 cents.
Barrick recorded total sales of $3,279 million, up 13.7% year over year. The figure topped the Zacks Consensus Estimate of $3,220.7 million.
Operational Highlights
Total gold production amounted to around 1.2 million ounces in the fourth quarter, down 16.2% year over year from 1.4 million ounces. Average realized price of gold was $1,871 per ounce in the quarter, up 26.2% year over year.
Cost of sales increased 1.8% year over year to $1,065 per ounce. All-in sustaining costs (AISC) moved up around 1% year over year to $929 per ounce in the quarter.
Copper production increased 1.7% year over year to 119 million pounds. Average realized copper price was $3.39 per pound, up 22.8% year over year.
FY20 Results
Earnings (as reported) for full-year 2020 were $1.31 per share compared with earnings of $2.26 per share a year ago. Net sales rose 30% year over year to around $12,595 million.
Financial Position
At the end of the year, Barrick had cash and cash equivalents of $5,188 million, up 57% year over year. The company’s long-term debt was $5,135 million at the end of the quarter, down 0.5% year over year.
Net cash provided by operating activities surged 91.2% year over year to $5,417 million.
Guidance
For 2021, Barrick anticipates attributable gold production in the range of 4.4-4.7 million ounces. AISC is expected in the range of $970-$1,020 per ounce and cost of sales is expected in the range of $1,020-$1,070 per ounce.
The company expects copper production in the range of 410-460 million pounds at AISC of $2.00-$2.20 per pound and cost of sales of $1.90-$2.10 per pound.
Capital expenditures are projected between $1,800 million and $2,100 million.
Price Performance
Barrick’s shares have declined 2.2% in the past year compared with 7.7% rise of the industry.
Zacks Rank & Other Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group (OTC:FSUGY) Limited FSUGY, BHP Group (NYSE:BHP) BHP and Impala Platinum (OTC:IMPUY) Holdings Limited IMPUY.
Fortescue has a projected earnings growth rate of 78.4% for the current fiscal. The company’s shares have surged around 160% in a year. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BHP has an expected earnings growth rate of 62.3% for the current fiscal. The company’s shares have gained around 49.8% in the past year. It currently holds a Zacks Rank #2.
Impala has an expected earnings growth rate of 195.9% for the current fiscal. The company’s shares have rallied around 48.3% in the past year. It currently sports a Zacks Rank #1.
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