Stifel GMP analysts had a muted reaction to production figures from Barrick Gold Corp's most recent quarter after the mining major’s attributable gold production fell short of estimates.
Barrick reported preliminary 2Q production results with total gold production of 1.04 million ounces, an improvement over the 1Q, but below consensus estimates of 1.08 million ounces.
According to Stifel, Nevada Gold Mines drove the majority of negative variance to its estimates after falling approximately 22,000 ounces short of expectations.
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“Gold production guidance was maintained, expecting production to gradually increase over the remaining quarters,” Stifel analysts wrote in a note.
“Preliminary indications on quarterly gold costs are somewhat above our current estimates as well as consensus. Given the expected 2Q costs, and based on our forecasts for the second half of the year, we see Barrick tracking $5-$10 per ounce above current total cash cost or all-in-sustaining cost guidance.”
Stifel is maintaining its Buy rating and a C$41 price target on its shares, which are currently trading at C$20.24 in Toronto.
Barrick is planning to release its full 2Q results on August 8.
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