Barrick Misses Estimates on Falling Gold Volume - TheStreet

Barrick Gold

(ABX)

said its first-quarter results fell short of analyst estimates as gold sales decreased from last year.

The gold producer said it earned $47 million, or 9 cents a share, down from $49 million, or 9 cents a share, in the year ago quarter.

After non-hedge-related adjustments, the company earned $46 million, or 9 cents a share, compared with $87 million, or 16 cents a share, last year. On that basis, analysts polled by Thomson Financial/First Call expected the company to earn 12 cents a share.

Revenue for the quarter fell to $478 million on gold sales of 1.5 million ounces, down from $499 million on sales of 1.6 million ounces last year. The company said the drop in sales was partially offset by a $9 per ounce increase in the price of gold, as it realized an average price of $329 per ounce on gold sales.

Barrick said it produced 1.4 million ounces of gold at costs of $175 an ounce in the quarter, compared to 1.5 million ounces at costs of $161 per ounce a year ago.

The company also noted that it had made a "significant new gold discovery" in Peru that should provide a total of 3.5 million ounces of gold. The company's exploration and development costs have increased $15 million for the year because of the new find.

Shares of Barrick closed at $20.07 Tuesday.