Barrick Gold Corporation
GOLD
is scheduled to report third-quarter 2020 results on Nov 5, before the opening bell.
The company’s third-quarter results are expected to reflect the benefits of higher gold prices. The company delivered an average earnings surprise of 23.1% over the trailing four quarters.
The stock has rallied 63.2% in the past year compared with the
industry
’s 41.3% growth.
Let’s see how things are shaping up for this announcement.
What to Expect in Q3
In October, Barrick announced preliminary results for third-quarter 2020.
Gold production and sales in the third quarter totaled 1.16 million ounces and 1.25 million ounces, respectively. Barrick realized average market price of $1,909 per ounce for gold. Notably, third-quarter gold production was sequentially higher due to stronger performances from Carlin and Pueblo Viejo. Moreover, preliminary gold sales in the third quarter slightly increased from the second quarter and came in higher than third-quarter 2020 production levels. The upside was due to export of the remaining stockpiled concentrate in Tanzania.
The company projects gold cost of sales per ounce for the third quarter to be in line with second-quarter levels. All-in sustaining cost (AISC) per ounce for gold are expected to be 5-7% lower than the second quarter.
Barrick reported preliminary third-quarter production and sales for copper of 103 million pounds and 116 million pounds, respectively. Also, preliminary copper production and sales for the third quarter were lower than second-quarter levels due to reduced throughput at Lumwana stemming from plant maintenance. Cost of sales per pound for copper for the third quarter is projected to be 4-6% lower than the second quarter. The company expects AISC per pound for copper to be 6-8% higher than the prior quarter.
Other Factors at Play
Concerns over the coronavirus pandemic have put gold in the spotlight this year as the most attractive safe-haven asset. Factors like a low interest rate environment, slump in crude oil prices and geopolitical tensions are driving demand for gold. Also, supply crunch stemming from suspensions of operations by miners have contributed to gain in gold prices. Notably, gold prices surged past the $1,900 an ounce mark in July and also attained an all-time high of $2,089.20 an ounce on Aug 7. Meanwhile, Barrick’s averaged realize price of gold also rose 31% year over year in the second quarter. The trend is likely to have continued in the third quarter and supported its margins.
What Do the Estimates Say?
The Zacks Consensus Estimate for third-quarter consolidated revenues is currently pegged at $3,353 million, which calls for a rise of 28.8% year over year.
Barrick Gold Corporation Price and EPS Surprise
Barrick Gold Corporation price-eps-surprise
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Barrick Gold Corporation Quote
Zacks Model
Our proven model does not predict an earnings beat for Barrick this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat. That’s not the case here.
Earnings ESP
: Earnings ESP for Barrick is 0.00%. The Zacks Consensus Estimate for earnings the third quarter is currently pegged at 32 cents. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Zacks Rank
: Barrick currently carries a Zacks Rank #2. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Stocks Likely to Beat Estimates
Here are some companies that you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Olin Corporation
OLN
, scheduled to release third-quarter 2020 earnings on Nov 4, has an Earnings ESP of +16.67% and carries a Zacks Rank #3.
Albemarle Corporation
ALB
, scheduled to release third-quarter 2020 earnings on Nov 4, has an Earnings ESP of +5.73% and carries a Zacks Rank #3.
Domtar Corporation
UFS
, slated to release third-quarter 2020 earnings on Nov 6, has an Earnings ESP of +57.14% and carries a Zacks Rank #3.
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