Barrick Gold Corporation (USA) (NYSE:ABX), the world's largest gold producer, will report a more than 20 percent fall in second-quarter profit on a huge drop in its selling price and a massive impairment charge on the Chilean portion of its troubled Pascua-Lama mine, as well as high expenses.
The Toronto-based gold producer, which reports Thursday before the market opens, is expected to announce net income of $607.12 million, down 22.56 percent or $176.88 million below the year-earlier level. Earnings per share are expected to drop 24 percent to 59 cents compared with 78 cents in last year's second quarter. It will also report a lower profit margin, 4.3 percent below the year-earlier period, according to analysts surveyed by Thomson Reuters.
Barrick's revenue will likely drop to 3.09 billion, 5.4 percent below the previous year's $3.28 billion.
The price of gold dropped by more than 22 percent in the second quarter as investors reacted to announcements made by the central banks of the world's two largest economies. The U.S. Federal Reserve announced that it would soon scale back its bond repurchasing program and China's central bank also announced during the period that it plans to tighten its money supply.
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