Barrick Gold Corp. reported a surprise net loss in the third quarter on a tax provision related to operations in Tanzania.
An export ban at a unit in the African nation amid a contractual dispute also dragged down production and revenue for the world’s biggest gold miner. Barrick lowered the top end of its 2017 production guidance to 5.5 million from 5.6 million ounces, it said Wednesday in a statement.
All-in sustaining costs to produce an ounce of gold were $772 compared with analysts’ expectations for $785 and $704 in the third quarter of 2016. The third-quarter net loss was $11 million, compared with net income of $175 million a year earlier, Barrick said.
Barrick was expected to report net income of $186 million, according to the average estimate of analysts tracked by Bloomberg. Earnings excluding one-time items were 16 cents a share, in line with the average of 14 analysts’ estimates compiled by Bloomberg.
Barrick has repeatedly stressed that improving free-cash flow is more important than adding ounces to its production pipeline. The company produced 1.243 million ounces of gold, in line with lower preliminary production estimates released last week.
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