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UPDATE 1-Miner Barrick raises dividend as adjusted profit soars on strong gold prices

Published 2020-11-05, 06:21 a/m
© Reuters.
GOLD
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(Updates with prices, production, background)

Nov 5 (Reuters) - Canadian miner Barrick Gold Corp ABX.TO GOLD.N posted a near three-fold jump in quarterly adjusted profit on Thursday and increased its dividend, benefiting from a surge in gold prices fueled by widespread coronavirus stimulus measures unveiled globally.

Higher prices of precious metals, including gold's surge to a record high above $2,000 an ounce earlier this year, have offered miners a lifeline after the COVID-19 pandemic disrupted supply chains and mining operations.

Barrick said average realized gold prices rose to $1,926 per ounce in the third quarter ended Sept. 30 from $1,476 per ounce a year earlier.

However, gold production, as expected, fell to 1.16 million ounces from 1.3 million ounces as the miner's Porgera project in Papua New Guinea remained shut during the period.

In a recent development, Papua New Guinea and Barrick agreed in principle over Porgera, with Barrick Niugini Ltd set to remain operator of the project. declared a dividend of 9 cents per share, a 12.5% increase on the previous quarter's dividend.

The Toronto-based company's adjusted profit rose to $726 million, or 41 cents per share, in the third quarter, from $264 million, or 15 cents per share, a year earlier.

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