Barrick Gold (NYSE: ABX) reported Q1 EPS of $0.15, $0.01 better than the analyst estimate of $0.14. Revenue for the quarter came in at $1.79 billion versus the consensus estimate of $1.84 billion.

OUTLOOK

We continue to expect full-year gold production of 4.5-5.0 million ounces, at a cost of sales3 of $810-$850 per ounce, and all-in sustaining costs4 of $765-$815 per ounce. As previously reported, the power plant that supplies electricity to the Porgera Joint Venture mine was damaged during an earthquake that struck Papua New Guinea on February 26, 2018. The mine's processing plant is currently operating at approximately 25 percent capacity, supported by an existing on-site diesel power station, as well as portable generators. At this time, the operation expects to increase processing capacity in stages, with full capacity anticipated by the fourth quarter. While the impact of this event to production at Porgera remains under evaluation, the Company's consolidated 2018 gold production guidance remains unchanged. Business interruption insurance is expected to mitigate a significant portion of earnings lost as a result of this event.

We expect gold production in the second quarter to be roughly in line with the first quarter at around one million ounces, mainly due to the impact of a scheduled maintenance shutdown at the Barrick Nevada roaster.

Sustaining capital expenditures are expected to be higher in the second quarter relative to the first quarter as the North American construction season ramps up for major sustaining projects such as tailings dam raises. Capitalized stripping at Barrick Nevada, Pueblo Viejo, and Veladero, and increased underground development at Barrick Nevada, are also expected to be higher in the second quarter.

The completion of development work, stripping, and maintenance in the second quarter, along with access to higher grades in the second half of the year, is expected to drive stronger production in the third and fourth quarters, at lower costs compared to the first half of 2018. In particular, we expect higher production from Barrick Nevada and Pueblo Viejo in the second half of the year, driven by higher grades and throughput.

We continue to expect full-year copper production of 385-450 million pounds, at a cost of sales3 of $1.80-$2.10 per pound, and all-in sustaining costs5 of $2.30-$2.60 per pound. Lower realized grades in the first quarter at the Lumwana mine are expected to steadily improve over the course of 2018.

Total attributable capital expenditure guidance6 for 2018 remains unchanged at $1.40-$1.60 billion, including mine site sustaining capital7 of $0.95-$1.10 billion, and project capital expenditures8 of $450-$550 million.

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