Higher gold prices and gains on derivatives more than offset rising costs and pushed fourth-quarter profits up 43 per cent at Barrick Gold Corp.
The international gold producer, based in Toronto, said Friday its fourth-quarter net income was $77-million (U.S.) or 14 cents a share.
That compared with $54-million or 10 cents in the year-ago quarter.
The improved profits “reflect a $51 per ounce higher realized gold price and a $60-million increase in non-hedge derivative gains,” Barrick stated.
“These were partly offset by higher cash operating costs, provisions of $14-million for the Inmet settlement and $10 million for reclamation costs and an $18-million lower income tax recovery.”
Gold sales for the quarter were 1.36 million ounces, down from 1.54 million in the final three months of 2002.
But Barrick's realized price rose to $394 per ounce from $343 and revenue edged up to $536 million from $526 million.
Operating costs were $292 an ounce, up from $267.
Barrick said full-year profit was $200-million or 37 cents a share, compared with $193-million or 36 cents in 2002. Sales rose to $2.04-billion from $1.97-billion.
© The Globe and Mail
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