Please comment on ABX Q1 earnings? They appear to be very good and Q2 will be much better but the stock went down and closer to yrly low instead of yrly high with very high gold price?
Thanks,
George
EPS of 19c beat estimates of 15.5c. Revenue of $2.74B matched estimates. EBITDA of $1.26B was 8% better than expected. Barrick's gold production may rise over the next three quarters on improving output at the Nevada Gold Mine joint-venture, Pueblo Vieja, North Mara and Kibali -- after maintenance disrupted 1Q -- bringing the lower-to-middle end of guidance for 3.9-4.3 million ounces within reach. Total cash costs could average toward the top end of the company's forecast of $940-$1,020 per ounce due to a stronger-than-expected price environment. Still, consensus Ebitda may be too conservative. Should gold hold at $2,300 an ounce, Barrick's full-year Ebitda could reach $6.7-6.8 billion. If spot metal prices hold for the rest of the year and working capital outflows ease over the next three quarters, Barrick's net debt could fall close to zero by year-end. The stock is going in the opposite direction of fundamentals. It is still not our favourite in the sector, but the quarter and outlook are decent, certainly.