For the full year, Barrick posted EPS of $0.68 on revenues of $10.24 billion, compared with EPS of $2.51 and revenues of $12.53 billion in 2013. Analysts had estimated EPS of $0.65 on revenues of $10.08 billion.
On a GAAP basis, Barrick posted a fourth-quarter loss of $2.45 per share, primarily due to an after-tax impairment charge of $1.7 billion for certain assets, a $1.1 billion write-down of goodwill and unrealized hedging losses of $138 million.
The company’s gold reserves ended 2014 at 93 million ounces, down from 104.1 million ounces at the end of 2013. About 65% of the reduction is down to mining and processing and the remainder has been divested. Measured and indicated copper reserves fell from 6.9 billion pounds at the end of 2013 to 4.6 billion pounds at the end of 2014.
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Total gold production in 2014 came to 6.24 million ounces at an all-in sustaining cost per ounce of $864. The average spot gold price for the year was $1,266 per ounce, compared with $1,411 in 2013. All-in sustaining costs per ounce of gold totaled $864 in 2014, compared with $915 per ounce in 2013.
In its outlook for 2015, Barrick estimates its all-in sustaining costs per ounce of gold at $860 to $895. Cash costs are forecast at $600 to $640 per ounce. Production is forecast at 6.2 million to 6.6 million ounces. Barrick estimates average gold revenue of $1,250 per ounce in 2015 and $2.50 per pound for copper. Capital spending is forecast at $1.9 billion to $2.2 billion, compared with $2.18 billion actual spending in 2014.
Barrick wants to cut its net debt from a current total of around $10 billion to about $7 billion by the end of 2015. The company said that it plans to do this by being more efficient with capital spending, cutting administrative costs and growing profitably. Barrick also said it would begin a process to sell its Porgera joint venture and its Cowal mine.
Shares of Barrick traded up nearly 3% in premarket trading Thursday, at $12.58 in a 52-week range of $10.04 to $21.45. Thomson Reuters had a consensus analyst price target of around $13.40 before the report.
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