Barrick's huge profit drop

Photo: The Canadian Press

Barrick Gold Corp. reports that its net income fell to $158 million in its fiscal first quarter, down more than 75 per cent from the same period a year ago.

The Toronto-based miner, which reports in U.S. currency, said its income amounted to 14 cents per share, compared to earnings of $679 million or 58 cents per share in the year-earlier period.

It said the lower earnings are mainly related to a net impairment reversal of $1.13 billion recorded in the year-ago quarter related to the sale of 25 per cent of the Cerro Casale project.

On an adjusted basis, earnings were 15 cents per share, slightly better than the 13 cents per share analysts had expected.

Revenue was $1.79 billion for the three months ended March 31, down 10 per cent from $1.99 billion during last year's first quarter.

The report was the first issued by Barrick since the death of founder Peter Munk, age 90, on March 28.