Barrick Gold Corp. said Tuesday it matched production and cost targets in 2003 and continued to trim its hedge book, although lower ore grades at mines in Peru and the United States will likely mean slightly lower numbers this year.
For 2003, Barrick reported total production of 5.51 million ounces at a cash cost of $189 (U.S.) an ounce.
In a statement, it also again said it expects 2004 gold production to be between 4.9 million and 5 million ounces at an average cash cost of $205 (U.S.) to $215 an ounce.
The lower production and higher cost estimates come as the company works through lower ore grade at its Pierina mine in Peru and Betze-Post mine in Nevada.
Barrick had previously outlined that situation in the fourth quarter of 2003.
Meanwhile, Barrick also reported that its hedge position was reduced by 600,000 ounces in the fourth quarter
As a result, Barrick's 2003 year-end position declined to 15.5 million ounces - down 2.6 million ounces year over year - representing less than 20 per cent of Barrick's reserves.
"In keeping with its no-hedge policy, Barrick will continue to pursue opportunities to further reduce its hedge position with the objective of reducing it to zero over time," the company said.
Barrick has cut its hedge position by about 36 per cent over the past two years.
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