Barrick Gold (NYSE:ABX) and other miners have been garnering the attention of some who are concerned over the impact rising inflation and costs will have on the companies in light of their guidance.
The giant gold miner looks solid in that regard, as based on revenue topping $2.95 billion and gold production reached 1.7 million ounces at cash costs of $486 an ounce, or $326 an ounce if you include sales of byproduct metals. Barrick said it should produce from 7.6 million to 8 million ounces of gold in 2011 at cash costs from $450 to $480 an ounce. Cash costs will be up in 2011 over 2010 because of rising raw material costs and lower grade gold at some of the mines the company works.
But with Barrick generating 95 cents a share in the last quarter, a big boost of 55 percent over the same quarter last year, while also declaring a 12-cent dividend, it appears they're confident they can continue to generate healthy profits in a tough environment.
As for inflation, that should help all the gold mining companies, and investors flock to gold to protect against rising inflation, which should help drive up the price of gold.
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