Barrick Gold lowers cost forecast as earnings beat

(Reuters) - Barrick Gold Corp (Toronto:ABX.TO - News), the world's largest gold producer, reported first-quarter earnings on Tuesday that beat market expectations and also lowered its outlook for costs this year.

Even so, its U.S.-listed shares (NYSE:ABX - News) were down 3.7 percent at $15.51 in premarket trading on Tuesday as the gold price retreated.

The Toronto-based miner reported adjusted earnings of 11 cents a share, up from 5 cents a year ago and ahead of analyst expectations of 11 cents, on average, according to Thomson Reuters I/B/E/S.

Barrick cut its forecast for all-in sustaining costs, the industry benchmark, for this year to a range of $760 to $810 per ounce from $775 to $825 before. It kept its gold production forecast unchanged at 5 million to 5.5 million ounces.

The miner, which has been selling non-core assets and using cashflow to pay down debt, said it is on track to cut debt by $2 billion this year. The company's total debt fell to $9.1 billion at the end of March from $10 billion at the end of December.

In the first three months, gold production fell 7.9 percent to 1.3 million ounces, while all-in sustaining costs fell 23.8 percent to $706 per ounce.

That suggests that costs "should rise over the balance of the year or guidance is too high," TD Securities analyst Greg Barnes said in a note to clients.

Barrick, which has mines in the Americas, Australia and Africa, reported a net loss of $83 million, or 7 cents per share, in the quarter ended March 31, compared with a profit of $57 million, or 5 cents per share, a year earlier.

Its stock has doubled in value this year on the back of stronger gold prices. Investors also have warmed to the company as it has cut operating costs and expenses and whittled down its mountain of debt.

(Reporting by Arathy S Nair in Bengaluru and Nicole Mordant in Vancouver; Editing by Ted Kerr, Maju Samuel and Bill Trott)