Winona, Ontario -- (SBWire) -- 11/02/2010 -- Eldora Gold Resources Canada News - Barrick Gold (NYSE:ABX), the world's largest producer of the yellow metal, posted a record profit for the third quarter, as lower-than-expected cash costs and higher gold prices boosted overall production.
During the period, the company recorded net income of $837 million, or $0.85 per share, from a loss of $5.4 billion, or $6.07 per share, in the year-ago quarter, when the company had $5.7 billion in charges related to the elimination of its gold hedging program.
Adjusted for one-time items, profits rose 75% to $829 million in the third quarter, or $0.84 per share, beating analyst expectations of $0.76 earnings per share.
Sales also jumped 40% to $2.8 billion in the period, compared to $2.0 billion a year earlier.
Eldora Gold Resources Canada News - Barrick said that its better-than-expected results were primarily a result of the company's third quarter gold production of 2.06 million ounces, ahead of target on account of lower total cash costs of $454 per ounce, and strong performance at its new Cortez Hills mine in the North American region.
In a statement, the company said its cash margins have reaped the benefits of rising gold prices and lower cash costs, increasing 52% to $783 per ounce. The realized gold price for the quarter was $1,237 per ounce, 27% higher than the prior year period.
Full year gold production is on track, Barrick added, expecting between 7.65 to 7.85 million ounces of gold at total cash costs of about $455 per ounce. It also anticipates producing about 360 million pounds of copper at total cash costs of $1.10-$1.15 per pound, in line with the original guidance.
Eldora Gold Resources Canada News - The giant gold producer expects that its Pueblo Viejo project in the Dominican Republic will begin initial production in the fourth quarter of 2011, while its Pascua-Lama property on the border of Chile and Argentina is on track to enter production in the first quarter of 2013. The company is targeting growth in gold production to 9.0 million ounces annually within five years once both these project come onstream, it said.
Based on the third quarter results, Barrick announced that its board has authorized a 20% increase in fourth quarter dividends to $0.12 per share. At quarter-end, the company had a whopping $4.3 billion in cash and $1.5 billion in undrawn credit, with $3.1 billion in net debt.
Barrick, from its properties across North and South America, Africa and the Australia Pacific regions, has gold reserves of 139.8 million ounces, plus measured and indicated gold resources of 61.8 million ounces and inferred gold resources of 31.6 million ounces.
Eldora Gold Resources Canada News - The company's closing price yesterday was $46.94, up from its 52-week low of $36.01.
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Barrick Gold Achieves Record Q3 Profit As Gold Prices Rise : Eldora Gold Resources News