Barrick Gold Q2 profit surges 59 per cent to $783 million

The world's largest gold producer Barrick Gold Corporation reported a 59-per cent jump in its second-quarter net income at $783 million or 79 cents a share compared to $492 million or 56 cents a share in Q2 last year, aiming for a record profit in 2010 driven by higher bullion prices and rising production from its mines.

The Toronto-based miner's net income excluding one-time items was up 76 per cent at $759 million or 77 cents per share in Q2 over $431 million or 49 cents a share for the same quarter a year ago, beating street expectations.

Total sales for the second quarter increased to $2.64 billion, up 34 per cent compared to $1.96 billion for the same quarter last year.

According to Barrick's president and CEO Aaron Regent ''the outlook for the price of gold remains very positive and Barrick will continue to be a major beneficiary.''

''We continued to advance our project pipeline in line with our plans. In particular, Cortez Hills has been completed and is performing exceptionally well and the construction of Pueblo Viejo and Pascua-Lama continue to move forward,'' Regent further stated.

The company also raised its dividend by 20-per cent to 12 cents per share and plans to change from semi-annual to quarterly dividend payouts.

''Sovereign-debt issues around the world aren't likely to go away in the foreseeable future,'' the main drivers of investment demand, and hence, higher gold prices are still in place,'' said Barrick's chief financial officer Jamie Sokalsky said on a conference call with investors.