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Barrick Little Light on Output, on Track for Year
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Adrian Day Global Analyst Adrian Day looks at production results from some gold companies; all will have full financials to follow. With gold and silver stocks jumping in the last week the XAU was up over 7% to its highest level since mid-May we are not chasing now.

Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) reported 2Q production slightly below estimates, though up from the first quarter as earlier maintenance at Carlin was finished.

However, plant expansion commissioning at Pueblo Viejo hurt production there this quarter. The company always said the second half of the year would be stronger than the first and appears to be on track to meet full-year guidance.

Costs are expected to be a little lower in the quarter, though still well above guidance for the year. In Mali, which accounts for about 8% of Barrick's NAV and a little more of revenue, a draft of changes to the mining law is under consideration. It would increase the government's share in mining projects to 35% from 20%. Details are unclear, in particular, whether the new terms would apply to mines already operating.


Fortuna and Royal See Good Output

Fortuna Silver Mines Inc. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE) had another solid quarter, with gold production above estimates, aided by the end-May start of the Séguéla mine in Cȏte d'Ivoire; by-products zinc and lead were also above estimates, but silver output was well below.

San Jose, which produces much of the company's silver, was hurt by a mine blockade during the quarter; operations have since resumed.


Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX) reported mixed stream results, as it continues to be broadly in line with annual guidance.

Revenue from streams accounts for about 70% of total revenues. Sales were helped by a reduction in gold inventories.

The company released few details.



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Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Barrick Gold Corp. and Fortuna Silver Mines Inc.
  2. Adrian Day: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with: All. I determined which companies would be included in this article based on my research and understanding of the sector.
  3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
  4.  This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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Adrian Day Disclosures

Adrian Day’s Global Analyst is distributed for $990 per year by Investment Consultants International, Ltd., P.O. Box 6644, Annapolis, MD 21401. (410) 224-8885. Publisher: Adrian Day. Owner: Investment Consultants International, Ltd. Staff may have positions in securities discussed herein. Adrian Day is also President of Global Strategic Management (GSM), a registered investment advisor, and a separate company from this service. In his capacity as GSM president, Adrian Day may be buying or selling for clients securities recommended herein concurrently, before or after recommendations herein, and may be acting for clients in a manner contrary to recommendations herein. This is not a solicitation for GSM. Views herein are the editor’s opinion and not fact. All information is believed to be correct, but its accuracy cannot be guaranteed. The owner and editor are not responsible for errors and omissions. © 2023. Adrian Day’s Global Analyst. Information and advice herein are intended purely for the subscriber’s own account. Under no circumstances may any part of a Global Analyst e-mail be copied or distributed without prior written permission of the editor. Given the nature of this service, we will pursue any violations aggressively.

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