Rising Gold Prices Lift Barrick Gold’s Earnings

Barrick Gold’s (GOLD) second-quarter adjusted earnings beat estimates, as gold prices rose and the gold producer said its first-half performance puts it on track to meet its goals for the full year.

Adjusted earnings of $557 million or 32 cents per share beat estimates after accounting for over $180 million related to tax assessments in Chile and other costs. Revenue at $3.16 billion missed expectations. Net income before adjustment at $370 million or 21 cents per share also fell short of estimates compiled by Visible Alpha, as production costs proved higher than analysts anticipated.

Like other gold miners, Barrick has benefited from higher gold prices, which hit a number of record highs this year.

Barrick also said that it started buying back stock in the quarter as part of the $1 billion program it announced in February.

Higher Production, Lower Costs Expected in Second Half

The Toronto-based company said it expects higher gold production and lower costs to support a strong second half of the year, with Barrick projecting it will be able to meet its production goals of 3,900 to 4,300 ounces of gold for the full fiscal year.

Barrick shares were up close to 6% at $18.44 as of 10:20 a.m. ET Monday following the company’s earnings release, and have gained about 2% since the start of the year.