Barrick Gold Corp. beat estimates for quarterly profit on Monday, benefiting from a rise in demand for the safe-haven metal driven by uncertainty about the global economy.
Gold prices have surged this year, as a sharp rise in stimulus packages to shield economies from the fallout of the Covid-19 pandemic has bolstered the metal’s safe-haven appeal.
The miner, which had warned of lower production in the quarter due to the impact of coronavirus at its Veladero mine in Argentina and dispute over its Porgera gold mine in Papua New Guinea, reported a 15% fall in gold output.
Barrick said it realized an average gold price of $1,725 per ounce in the quarter, a 31% jump from a year earlier.
The company’s adjusted profit rose to $415 million, or 23 cents per share, in the second quarter ended June 30, from $154 million, or 9 cents per share, a year earlier.
Analysts were expecting the company to report a profit of 19 cents per share, according to Refinitiv IBES data.
