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.
Hold.
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.
Hold.
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.
Hold.
TOP BUYS THIS WEEK include Nestle SA (NESN:VX; NSRGY:OTC).
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