Barrick Gold beats estimates for quarterly profit, enters JV in Jamaica

FILE PHOTO: A small toy figure and gold imitation are seen in front of the Barrick logo in this illustration taken November 19, 2021./File Photo

(Reuters) -Canadian miner Barrick Gold on Wednesday beat first-quarter profit estimates on higher bullion prices and said it has entered into an exploration partnership with Geophysx Jamaica.

Prices of the precious metal rose about 8.2% to $2,231 per ounce in the January-March quarter, on buying from central banks and hopes the U.S. Federal Reserve could cut interest rates as early as June. [GOL/]

The world’s second-largest gold miner said its average realized gold prices rose to $2,075 per ounce from $1,902 per ounce a year earlier.

All-in sustaining costs per ounce of gold, an industry metric that reflects total expenses, was $1,474 in the quarter, up from $1,370 per ounce a year earlier.

Rival Newmont also topped profit estimates last week, as the world’s largest gold miner benefited from robust production, prices and lower operating costs.

U.S.-listed shares of Barrick were up 2.5% in premarket trading.

The Toronto, Canada-based company, in a separate release, said as part of its agreement with Geophysx, Barrick will have the right to work with the private mineral exploration company to earn up to an 80% joint-venture interest in designated properties located in Jamaica.

The partnership would initially provide Barrick with access to about 4,000 square kilometers of consolidated land positions throughout the country, with a favorable geological setting comparable to the Dominican Republic, where it operates the Pueblo Viejo mine.

Barrick’s gold production fell to 940,000 ounces in the quarter, versus estimates of 947,330 ounces.

But it expects production to increase steadily through the year, with operations ramping up at its Goldrush mine in Nevada and at Pueblo Viejo, along with restarting of the Porgera mine in Papua New Guinea.

The company’s quarterly revenue of $2.75 billion was higher than the $2.64 billion a year ago.

It posted adjusted profit of 19 cents per share, compared with LSEG estimates of 15 cents.

(Reporting by Vallari Srivastava in Bengaluru; Editing by Krishna Chandra Eluri and Shilpi Majumdar)