Barrick Mining ABX-T reported a rise in third-quarter profit on Monday, driven by higher gold prices that offset a decline in production. Spot gold averaged US$4,204.59 per ounce during the July-September period, up about 17.6 per cent from a year earlier. This surge was fueled by strong central-bank purchases and investor demand for bullion as a hedge against weakening currencies.
The prospect of U.S. interest-rate cuts initially supported gold prices, though they later pulled back as expectations for monetary policy easing faded. Higher gold prices typically boost miners’ revenue and margins. Barrick’s quarterly average realized gold price rose 23 per cent over the year earlier to US$4,243 per ounce.
However, gold production fell to 816,000 ounces in the third quarter, from 829,000 ounces a year earlier. This decline was largely due to extreme weather at the Veladero mine and delayed access to higher-grade ore at North Mara. The company expects to access the higher-grade material in the fourth quarter.
Barrick earned US$1.32 billion, or 80 US cents per share, for the three months ended Sept. 30, compared with US$1.30 billion, or 76 US cents per share, a year earlier.