Barrick Gold 3-month TSX chart

Surging gold prices led to a $514-million US first-quarter profit at Barrick Gold, and company executives told shareholders they expect demand from emerging markets to keep the precious metal at precious levels for some time yet.

Barrick's first quarter profit amounted to 59 cents US a share. That reversed a net loss of $159 million US, or 18 cents a share, in the same quarter a year earlier.

Barrick reported a loss last year as it took a huge writedown to abandon its hedging program. For many years, Barrick had engaged in hedging — selling much of its production at pre-determined prices. That guaranteed a certain minimum price for its gold but prevented it from taking full advantage of rising gold prices.

With gold peaking recently above $1,000 US an ounce, the benefit of the decision to get out of its hedging contracts is now showing up on Barrick's bottom line.

Demonstrators criticize Barrick Gold's environmental and human rights record outside the company's annual general meeting in Toronto. (CBC)

The Toronto-based company said it sold its gold for a record average of $925 US an ounce in the quarter.

Even a drop in production couldn't take the shine off prices that high. The world's biggest gold miner produced 1.7 million ounces in the first quarter, down from two million in the same quarter a year ago. The company blamed disruptions and lower grades at some of its operations.

Barrick maintained its full-year production guidance of 7.6 million to 8.1 million ounces.

"We have positioned ourselves to benefit from today's strong metal prices, and our efforts are now being realized in expanding margins and strong earnings and cash flow," acting chief executive Peter Munk said in a statement.

Munk, who founded Barrick Gold, has been in the CEO's chair since March, when chief executive Greg Wilkins began a leave of absence because of an unspecified serious illness.

Still, Wilkins was able to deliver an optimistic address to shareholders at the company's annual meeting Tuesday morning in Toronto. Wilkins said "virtually no new discoveries" would help to keep demand for gold strong and prices high.

A small group of demonstrators protested outside the annual meeting, accusing Barrick of harming the environment and having no respect for indigenous peoples — charges Barrick has denied.

Barrick shares finished down one cent at $39.40 on the TSX.