Barrick Gold profit cut in half

Barrick Gold Corp.'s profit missed expectations in the third quarter as its revenue fell amid lower gold prices.

The Toronto-based company's net income before adjustments fell to $620 million US or 62 cents per share — less than half what Barrick earned at the same time last year.

Its adjusted EPS was 85 cents per share, or $850 million in total.

Analysts had been looking for $1 per share of adjusted EPS from Barrick, the world's largest gold producer.

Revenue drops

In the third quarter of 2011, Barrick had $1.37 billion or $1.37 per share of net earnings and $1.38 billion or $1.38 per share of adjusted net income.

Revenue dropped to $3.43 billion from $3.97 billion.

The third quarter net income included $148 million of impairment charges, primarily related to to an exploration property in Papua New Guinea, acquired as a result of the Kainantu acquisition in 2007.

Barrick says it's realized average gold price was $1,655 per ounce, five per cent lower than the same period last year.

It said the 2012 gold production target is currently 7.3 million to 7.5 million ounces, within the original guidance range.

Barrick says it has cut or deferred about $1 billion of capital spending for 2013, but capex will be about the same as this year.

"We are on track to achieve our production guidance with higher production expected in the fourth quarter," said Jamie Sokalsky, President and Chief Executive Officer.

"Despite some cost pressures, Barrick remains the lowest cost senior gold producer."