Barrick Gold targets 9 million ounces of gold production in five years

The world's largest gold producer Barrick Gold Corporation said yesterday that the company has set an annual production target of 9 million ounces of gold in five years, approximately 16-per cent up from the present level of 7.65-7.85 million ounces.

The Canadian miner reported a record $829 million in Q3 adjusted net income, registering a 75-per cent increase, compared to $473 million for the same quarter last year, as a result of record gold prices, and increased production from its mines.

Operating cash flow also surged to a record $1.28 billion, up 40 per cent from $911 million in the third quarter of 2009.

Cash margins continue to benefit from rising gold prices and lower cash costs. Q3 margins increased to 52 per cent to $783 per ounce over $515 per ounce in the third quarter of 2009. Average realised gold price in Q3 was $1,237 per ounce, 27-per cent higher compared to a year ago.

For Q3 2010, the gold miner produced 2.06 million ounces of the precious metal at lower than expected cash cost of $454 per ounce. The higher than expected production was due to strong performance from the North American region, including the new Cortez Hills and Goldstrike mines, as well as Veladero mines in South America.

The increased production target of 9 million ounces in five years is based on anticipated production from the world-class Pueblo Viejo project in the Dominican Republic and Pascua-Lama project in the Chile-Argentina border, and additional development of existing mines.