ELKO, Nev. - Barrick Gold Corp. showed a drop in profits for the quarter that ended March 31, but said it remained upbeat over the success of its hedging program and low-cost mines in Nevada and Peru.
The company reported a net income on Wednesday of $72 million or 18 cents a share, down from $87 million and 23 cents a share for the same period a year earlier.
Barrick also announced completion of the $330 million roaster plant at the Goldstrike operations north of Carlin, which the company said would boost earnings later in the year.
Barrick President and Chief Executive Officer Randall Oliphant said last year's first quarter was the company's strongest in 1999 and that this year's results were higher than anticipated.
''We've just completed the new roaster facility at Goldstrike ahead of schedule and below budget,'' Oliphant told the Elko Daily Free Press by telephone from Toronto.
Barrick, Canada's No. 1 gold producer, also reported production of 902,617 ounces in the first quarter, down from 1,019,913 ounces in the first quarter of 1999, and cash costs of $133 for the first three months of 2000, $12 lower than the target of $145 an ounce, but higher than the cash cost of $125 an ounce in the first quarter of 1999.
Oliphant said Barrick still expects to produce 3.7 million ounces of gold this year.
Oliphant credited Barrick's hedging program for achieving a gold price of $360 per troy ounce in the first quarter, compared with the spot gold price average of $290 and said production is sold forward at an average minimum price of $360 an ounce.
The hedging brought in an extra $62 million in the quarter on gold sales of 882,772 ounces.
Barrick shares closed at $17 today on the New York Stock Exhange, up 56 cents.
