Business

Barrick Gold sees profits rise in quarter but misses analyst expectations

Barrick Gold's first quarter results fell short of expectations despite swinging to a profit of $679 million US compared to a net loss of $83 million US in the same quarter last year.
Gold mining giant Barrick said that once adjusted, first-quarter earnings came in at $162 million US or $0.14 per share, compared with $127 million US or $0.11 per share in the first quarter of 2016. (The Associated Press)

Barrick Gold's first quarter results fell short of expectations despite swinging to a profit of $679 million US compared to a net loss of $83 million US in the same quarter last year.

The gold mining giant said that once adjusted, net earnings came in at $162 million US or $0.14 per share, compared with $127 million US or $0.11 per share in the first quarter of 2016.

The results fell short of the analyst consensus of $224 million US in net income and earnings per share of $0.20, according to Thomson Reuters.

Revenue for the first quarter came in at $1.99 billion US, also below analyst expectations of $2.17 billion US.

The company also revised down its production outlook for the year to between 5.3 and 5.6 million ounces gold, compared with the 5.6 to 5.9 million ounces it had previously expected.

Barrick said two-thirds of the reduced output is because it's selling a 50 per cent stake in its Veladero mine in Argentina, where it has run into operational challenges.