Barrick profit lifted by surging bullion price

Thu Oct 27, 2011 3:39pm EDT
 
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By Euan Rocha

(Reuters) - Barrick Gold ABX.TO, the world's top gold miner, reported a 45 percent increase in quarterly profit on Thursday, driven by a sharp increase in bullion prices.

Barrick's solid results mirrored those of Canada's No. 2 gold miner Goldcorp G.TO, which also reported a big earnings increase late on Wednesday.

In separate conference calls on Thursday, executives of both gold miners touted their respective growth prospects from development projects currently in the pipeline.

Both played down the impact of Argentina's surprise move on Wednesday to order oil, gas and mining companies to cash in all their export revenue on the local foreign-exchange market.

The chief executives of both miners said the move, aimed at protecting Argentina's dwindling central bank reserves and stemming losses in the Argentine peso, won't have a material impact on operations or planned investments in the country.

Barrick, which operates the Veladero mine in Argentina, is also in the midst of developing the massive Pascua Lama mine on the border of Chile and Argentina. Goldcorp owns a minority stake in the Alumbrera mine in Argentina and it also owns the Cerro Negro project in the country's Santa Cruz province.

SOLID QUARTER

Earlier, Toronto-based Barrick said its third-quarter net income rose to $1.37 billion, or $1.36 a share, from a year-earlier profit of $942 million, or 94 cents.   Continued...