Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) is on target to meet
its gold and copper production guidance for 2023 and continues to
advance major projects which will drive value delivery in the long
term through organic growth, president and chief executive Mark
Bristow said today.
Commenting on the company’s Q2 results, Bristow said improved
performances from the Carlin complex in Nevada, the Kibali gold
mine in the Democratic Republic of Congo and the Lumwana copper
mine in Zambia have laid a sound foundation for production in the
second half of the year which, as guided, is expected to surpass
the first. Key drivers of the higher anticipated H2 results are the
Q2 completion of major maintenance projects at Nevada Gold Mines
(“NGM”) and the commissioning of the plant expansion at the Pueblo
Viejo gold mine in the Dominican Republic.
Compared to Q1, gold production in Q2 was up 6% at just over 1
million ounces1 while copper production increased by 22% to 107
million pounds.1 Operating cash flow rose by 7% to $832 million,
net earnings increased by 143% to 17 cents per share, and
adjusted net earnings2 increased by 36% to 19 cents per share.
The quarterly dividend was maintained at 10 cents. Year-on-year,
the total recordable injury frequency rate (“TRIFR”) was reduced by
8% and greenhouse gas emissions were reduced by 12%.3
The massive Pueblo Viejo expansion project is making significant
progress with the process plant currently ramping up to full
capacity. The plant expansion and associated new tailings storage
facility will extend the Tier One11 mine’s life to beyond 2040 and
is designed to sustain gold production above 800,000 ounces pear
year (100% basis) going forward.12 In Papua New Guinea, the
resolution of the tax dispute has allowed us to work toward the
re-opening of the Porgera gold mine by the end of the year13, with
a potential Tier One production profile, while the prefeasibility
study on a Super Pit at Lumwana is driving its transformation into
another Tier One asset, capable of producing into the 2060s.
In Pakistan, Barrick continues to make solid progress on the
Reko Diq project. Reko Diq is targeting first production in 2028,
at the same time that the Lumwana expansion is expected to be
completed. Together, these projects will elevate Barrick into the
premier league of copper producers, in line with its strategy of
significantly expanding its copper portfolio.
Exploration, traditionally Barrick’s key growth driver, is
advancing significant resource and reserve growth opportunities at
Carlin, Cortez and Turquoise Ridge in Nevada, Veladero in Argentina
and Loulo, Kibali and Lumwana in Africa. Barrick is also continuing
to expand its global exploration footprint and has consolidated new
prospective ground holdings in the USA, Canada, the Dominican
Republic, Peru, Chile, Tanzania and Côte d’Ivoire.
“Our asset base is the best in the business and it gives us a
platform from which we can clearly see and plan for the future,
managing the challenges and maximizing the opportunities. At the
halfway mark of this year, we’ve again advanced significantly
towards our goal of building the world’s most valued gold and
copper mining company, and we have the strategy, the means and the
motivation to achieve that,” Bristow said.Key Performance
Indicators
Financial and Operating Highlights
Financial Results |
Q2 2023 |
Q1 2023 |
Q2 2022 |
Realized gold price1,4 ($ per ounce) |
1,972 |
1,902 |
1,861 |
Net earnings ($
millions) |
305 |
120 |
488 |
Adjusted net earnings2 ($
millions) |
336 |
247 |
419 |
Net cash provided by operating
activities ($ millions) |
832 |
776 |
924 |
Free cash flow5 ($
millions) |
63 |
88 |
169 |
Net earnings per share
($) |
0.17 |
0.07 |
0.27 |
Adjusted net earnings per
share2 ($) |
0.19 |
0.14 |
0.24 |
Attributable capital expenditures6,7 ($ millions) |
588 |
526 |
587 |
Operating Results |
Q2 2023 |
Q1 2023 |
Q2 2022 |
Gold |
|
|
|
Production1 (000s of
ounces) |
1,009 |
952 |
1,043 |
Cost of sales1,8 ($ per
ounce) |
1,323 |
1,378 |
1,216 |
Total cash costs1,9 ($
per ounce) |
963 |
986 |
855 |
All-in
sustaining costs1,9 ($ per ounce) |
1,355 |
1,370 |
1,212 |
Copper |
|
|
|
Production1 (millions of
pounds) |
107 |
88 |
120 |
Cost of sales1,8 ($ per
pound) |
2.84 |
3.22 |
2.11 |
C1 cash costs1,10 ($ per
pound) |
2.28 |
2.71 |
1.70 |
All-in
sustaining costs1,10 ($ per pound) |
3.13 |
3.40 |
2.87 |
Best Assets
- Strong performances at Carlin,
Kibali and Lumwana keep Barrick on track to deliver gold and copper
production within annual guidance
- Stronger second half expected with
completion of major shutdowns at NGM and Pueblo Viejo ramp-up in
Q3
- New equipment at Lumwana delivers
40% increase in copper production, 21% decrease in cost of sales
and 26% decrease in C1 cash costs10 over Q1; more expected in H2 as
we mine higher grade benches
- Solid Q2 production at Veladero
places it firmly on track to deliver on full-year guidance
- Porgera continues to advance to
restart, aided by settlement of legacy tax dispute and submission
of new Special Mining Lease application
- Exploration progresses significant
brownfields opportunities at Carlin, Cortez, Turquoise Ridge,
Veladero, Loulo, Kibali and Lumwana while consolidating new
prospective ground positions in USA, Canada, Dominican Republic,
Peru, Chile, Tanzania and Côte d’Ivoire
Leader in Sustainability
- Pueblo Viejo receives environmental
license for new tailings storage facility
- 8% reduction in TRIFR3
year-on-year
- 12% decrease in greenhouse gas
emissions versus H1 2022
- Successful reintroduction of 16
white rhinos into the Garamba National Park in DRC
Delivering Value
- 7% increase in operating cash flow
over Q1 to $832 million
- 143% increase in net earnings per
share over Q1 to $0.17 and 36% increase in adjusted net earnings
per share2 to $0.19 for Q2
- $0.10 per share dividend declared
Q2 2023 Results PresentationWebinar and
Conference Call
Mark Bristow will host a live presentation of the results today
at 11:00 AM ET, with an interactive webinar linked to a conference
call. Participants will be able to ask questions.
Go to the webinarUS and Canada (toll-free), 1 800 319 4610UK
(toll-free), 0808 101 2791International (toll), +1 416 915 3239
The Q2 2023 presentation materials will be available on
Barrick’s website at www.barrick.com and the webinar will remain on
the website for later viewing.
BARRICK DECLARES Q2 DIVIDEND
Barrick today announced the declaration of a dividend of
$0.10 per share for the second quarter of 2023.
The dividend is consistent with the company’s Performance
Dividend Policy announced at the start of 2022.
The Q2 2023 dividend will be paid on September 15, 2023 to
shareholders of record at the close of business on August 31,
2023.
“As a result of the continuing overall strength of our business
and balance sheet, we have maintained the distribution of a robust
base dividend to our shareholders, while our Performance Dividend
Policy provides the potential for additional upside going forward,”
said senior executive vice-president and chief financial officer
Graham Shuttleworth.
THE POSITIVE IMPACT OF RESPONSIBLE
MINING
Effective and equitable socio-economic development
worldwide would not be possible without the transformative
contribution of responsible mining, Mark Bristow said at the
group’s third annual Sustainability
Update on July 25.
Bristow said Barrick’s sustainability strategy was geared to the
United Nations’ Sustainable Development Goals (SDGs), and in line
with its commitment to transparency, its recently published
Sustainability Report for 2022 showed how its operations
contributed to or impacted on specific SDGs.
“We believe mining is the flywheel of development and therefore
the entire industry is essential to the achievement of the SDGs,”
he said.
Barrick’s Sustainability Executive, Grant Beringer, said the
group was also making progress towards complete conformance with
the latest best practices, including the International Council on
Mining and Metals’ Performance Expectations, the World Gold
Council’s Responsible Gold Mining Principles and the Global
Industry Standard on Tailings Management. Barrick continues to meet
or exceed its environmental targets, including recycling and
reusing water — up to 83% from 80% in 2021 — and reducing
greenhouse gas emissions by 12% year-on-year and 6% for 2022.
“We believe the mining industry is a catalyst for socio-economic
development through the infrastructure we build, the jobs we
create, the businesses we support through our supply chains and the
investments we make in local communities,” Beringer said.
The group’s current key focus areas are: using its purchasing
power to drive down Scope 3 emissions from suppliers; developing a
tool to measure its contribution to the conservation and
regeneration of biodiversity; continuing to provide ESG raters with
the latest sustainability-related information; and progressing the
environmental and social studies at the giant Reko Diq project in
Balochistan, Pakistan, where it is already delivering on its
community development commitments, far ahead of the targeted first
production in 2028.
“Done right, the mining industry is a powerful force for good in
the global drive for social and economic development,” Bristow
said.
FOCUS ON FLEXIBILITY AT NEVADA
With the completion of major maintenance shutdowns at
NGM, and a significantly improved performance from Carlin, the
focus on driving flexibility and reducing production risk has
intensified.
NGM chairman Mark Bristow says while the superb quality of the
complex’s assets and its enormous untapped potential make Nevada
the value foundation on which operator and majority shareholder
Barrick is growing its business, it has processing constraints
which need to be overcome by boosting operational flexibility.
“We see at each of the three Tier One assets (Carlin, Cortez and
Turquoise Ridge) multiple opportunities to strengthen the life of
mine with near-mine growth using the current infrastructure in the
midterm (Leeville, Ren), new projects that can extend the use of
the processing facilities (Robertson), and a long-term portfolio
targeting significant brownfields and greenfields (Fourmile,
Turquoise Ridge Underground) to sustain current production past the
15-year window.”
“We’re planning to achieve this by increasing processing and
mining run times, stepping up development at all the underground
mines, improving and standardizing maintenance management,
identifying and implementing efficiency initiatives, and tightening
control of compliance with mine plans,” he says.
“Barrick’s mantra is that the best assets need to be managed by
the best people so there’s been an equally strong focus on building
a management team and a workforce with the skills and orientation
required to make the most of the world’s largest gold mining
complex. In this regard, it’s worth noting that the training center
we established at NGM has already produced more than 170 frontline
and support staff graduates.”
During the past quarter, NGM’s operating muscle was beefed up
with the ahead-of-schedule commissioning of the first seven of a
new 22-unit Komatsu 930 fleet due this year. The rest of a total of
62 are due to be commissioned over the next three years.
WHERE WOMEN SHINE
On June 15, Barrick joined the rest of the industry in
celebrating the International Day of Women in Mining. As Mark
Bristow notes, however, acknowledging and encouraging the important
role women should be playing in this traditionally male-dominated
business is an everyday strategic priority for
Barrick.
“People are the ultimate resource, and we invest the same amount
of attention into finding and developing them as we do in exploring
for mineral resources,” Bristow says. “There’s a strong commercial
as well as a moral motivation to make gender diversity part of this
strategy. The communities in which we operate include large numbers
of capable and committed women who just need an opportunity to show
what they can contribute.
“That’s why we have recruitment drives and training programs
specifically targeted at women as well as initiatives to raise
awareness of the value of female economic empowerment in their
communities.
“At our Pueblo Viejo mine in the Dominican Republic, for
example, women represented 51% of new hires and 35% of internal
promotions last year, and 23% of its workforce is now female.
Across the group we had almost 3,000 female employees, representing
12% of our global workforce at the end of 2022, with 18% of
management positions and 16% of senior management positions being
held by women. We’re working hard to make that proportion
larger.”
LUMWANA’S BURIED TREASUREHOW BARRICK
CREATES VALUE BY UNCOVERING POTENTIAL
Barrick’s post-merger focus on developing a clear
understanding of the geological structures underlying its assets
has unlocked enormous potential across the group, most recently at
the 100% owned Lumwana copper mine in Zambia.
The transformation of this mine into a potential Tier One
operation with a significant free cash flow and a life expectancy
into the 2060s is well under way, with the accelerated
pre-feasibility study scheduled for completion towards the end of
next year. Pre-construction will start in 2025 with 2028 targeted
for first production. Concurrent with the expansion, the existing
process plant will be upgraded to support the new mine life.
“Resource conversion of the Chimiwungo Super Pit extension has
started and the results to date have confirmed the deposit’s
potential to provide the foundation for the Lumwana expansion
project. Meanwhile resource definition drilling at the
near-surface, low-strip Kamisengo deposit has shown that it can
support the process plant feed during the stripping phase of the
super pit,” says Sebastiaan Bock, chief operating officer of
Barrick’s Africa & Middle East region.
Mark Bristow says when the new Lumwana and Reko Diq both come on
stream, which is currently expected in 2028, they will promote
Barrick to the premier league of copper producers alongside its
peerless gold portfolio.
“Both these projects demonstrate Barrick’s unique ability to
extract every ounce or pound of value from assets already in its
portfolio,” he says.
ORGANIC GROWTH IN MINERAL RESERVES SUPPORTS BARRICK’S
10-YEAR PRODUCTION PROFILE
Exploration continues to be the driving force that sets
Barrick apart from its peers by delivering significant and
sustained growth in attributable, proven and probable
reserves.
“Since the 2019 merger with Randgold, we’ve replaced 125% of the
gold depleted by mining (exclusive of divestments and acquisitions
on a gold equivalent basis)14 by unlocking the full value of
Barrick’s assets and successfully expanding the asset base through
brownfields exploration,” says Simon Bottoms, mineral resource
management and evaluation executive.
“One of the big advantages of having high-quality assets in the
world’s most prospective regions is that we have a long replacement
planning runway. A key group deliverable is the organic replacement
of depletion on a rolling three-year basis. Our focus for the rest
of this year is on building the mineral resources that will serve
as the foundation for future conversion into reserves.”
In Nevada, Barrick continues to work on multiple Tier One
targets that are expected to materially grow the resource and
reserve potential of one of the world's most endowed mining
complexes. In the Africa & Middle East region, resource
conversion drilling at Kibali, Yalea at Loulo-Gounkoto and
Bulyanhulu is expected to again replace depletion this year.
“Looking ahead to 2024, the completion of the prefeasibility
study on the Lumwana Super Pit expansion project and the updated
feasibility study on the Reko Diq project in Pakistan is expected
to deliver organic growth over and above annual depletion in the
group’s mineral reserves. Next year’s reserve growth is also
expected to be supported by the completion of conversion drilling
in the greater Leeville complex and elsewhere at NGM,” says
Bottoms.
A PROUD HISTORY, A BRIGHT FUTURE
Barrick marked its 40th birthday this year, celebrating
its growth from the modest, small-scale operation started by
Canadian mining pioneer Peter Munk in the early 1980s.
When Barrick listed on the Toronto Stock Exchange on May 2,
1983, it had a market capitalization of C$100 million and produced
30,000 ounces of gold in its first full year of production. Since
its merger with Randgold in 2019, the company aspires to be the
world’s most valued gold and copper business with the best assets
managed by the best people and delivering the best returns and
benefits for all its stakeholders.
Barrick today has a multi billion dollar market capitalization
and produced 4.1 million ounces of gold and 440 million pounds of
copper in 20221 from a mine and project portfolio spanning 19
countries.
BRINGING BACK WHITE RHINOS TO THE DRC
Barrick was the sole donor in the recent translocation
of 16 southern white rhinos to the Democratic Republic of the
Congo’s Garamba National Park, near our Kibali Gold Mine, in
collaboration with the Institut Congolais pour la Conservation de
la Nature (ICCN), African Parks and &Beyond Phinda Private Game
Reserve in Kwazulu-Natal, South Africa, from where the rhinos were
sourced. Northern white rhinos were last seen in the park in 2006
and are now considered extinct.
This latest sustainability initiative forms part of Barrick’s
long-standing partnership with African Parks and Garamba, which has
seen the company provide more than $2.5 million for tracking
collars, fuel for observation planes, rescue and rehabilitation
programs as well as improvements to critical infrastructure such as
roads and bridges.
Additionally, Barrick will fund the translocation of a further
60 white rhinos from South Africa to Garamba over the next three
years. The project is aligned with Barrick’s biodiversity strategy
which places importance on restoring and conserving areas with high
conservation value and the species within those habitats.
A COMPREHENSIVE MULTI-YEAR PROCESS EXTENDS THE LIFE OF
PUEBLO VIEJO TO BEYOND 2040
The Barrick-operated Pueblo Viejo mine continues to
advance the engineering design for the El Naranjo tailings storage
facility (TSF) project which will extend its life to 2040 and
beyond.12 The plant expansion and
associated new TSF is designed to sustain gold production above
800,000 ounces per year (100% basis) going
forward.12
Speaking at a local media briefing on July 27, Mark Bristow said
that the comprehensive engineering, environmental and community
process, conducted over several years, would enable Pueblo Viejo to
double the enormous contribution it had already made to the
Dominican Republic’s economy.
In line with its commitment to transparency, Bristow detailed
the process leading up to the issuance of the environmental licence
recently received for the new TSF. This started with a
comprehensive site selection in line with the Global Industry
Standard on Tailings Management (GISTM) and in consultation with
the Government and communities.
Following the site selection process, an Environmental and
Social Impact Assessment (ESIA) was completed which considered
potential impacts associated with the preferred and alternative
sites. This involved the completion of numerous specialist studies
undertaken by independent in-country and international experts,
including an independent peer review.
The company consulted with interested and affected parties over
the course of four years, including more than 3,000 community
engagements and two open public participation meetings. In line
with the company’s commitment to transparency and best practice,
open public meetings were advertised in local and national media
and allowed sufficient opportunity for all parties to raise
concerns, questions and comments throughout the process.
“Mining is the driver for global development and to date, Pueblo
Viejo has paid a total of $3.2 billion in direct and indirect taxes
since commencing commercial production in 2013. The extension of
the mine’s life will allow Pueblo Viejo to continue being a major
creator of value for the Dominican Republic and its people far into
the future,” Bristow said. TWIGA TRANSFORMS TANZANIAN
MINING, SETS STANDARD FOR INDUSTRY
Twiga Minerals, the joint venture between the Tanzanian
government and Barrick, has revitalized the country’s gold mining
industry through a partnership that should serve as a model for
similar operations, particularly in developing regions, says Mark
Bristow.
Briefing media at a visit to the North Mara mine in July,
Bristow said, in 2019, when Barrick took control over North Mara
and Bulyanhulu — the mines that now form the Twiga complex – both
were rundown and at a virtual standstill due to a deadlocked
dispute between the government and the previous operators.
“We settled the dispute and established Twiga as a 50:50
economic benefits sharing partnership, which also vested a 16%
shareholding in each mine with the government. We reinvented the
mines which now, as a combined complex, produce gold at a Tier One
level. So successful are these operations that, since Barrick’s
buyout of the minority shareholders, they have contributed more
than $2.8 billion to the Tanzanian economy in the form of taxes,
levies, dividends, salaries and payments to local suppliers,”
Bristow said.
“Equally important, we have fixed the environmental, land claims
and human rights issues that destroyed these mines’ reputations and
have restored their social licence to operate as an integral member
of their communities. Since its establishment, Twiga has invested
more than $12.5 million in landmark projects — identified in
collaboration with the community development committees we
established at the mines — to provide access to quality healthcare,
educational facilities, potable water and alternative sources of
income. Among these is an irrigation system which is expected to
substantially improve production for more than 2,350 farmers, as
well as a potable water tower that provides water to nearly 35,000
residents.”
Twiga has also committed $30 million to a Future Forward School
Program. In partnership with the government, it will build 1,090
classrooms and other facilities across 161 schools nationwide, to
accommodate some 49,000 students who started their A-levels in July
this year. In addition, it has pledged $40 million to construct a
73 kilometre road from Kahama to Kakola.
Operationally, Bristow said the Twiga complex was continuing its
strong production performance and was well on track to achieve its
guidance for the year. Both mines are maintaining a strong focus on
the health and safety of their workers, and in April Bulyanhulu won
the Overall Tanzanian OSHA1 Compliance Award for 2023 in the Mining
Sector Category and North Mara was second runner-up.
Globally, Barrick has a policy of prioritizing local employment
and at Twiga this has delivered a workforce which is 96% Tanzanian,
with almost half drawn from the communities around the mines.
Bristow said conversion drilling at North Mara was successfully
replacing the reserves depleted by mining and first ore was mined
at the mine’s new Gena pit last quarter. Additional opportunities
for resource conversion have been identified at both mines.
“Barrick is committed to expanding its presence in Tanzania from
our base here. We are currently consolidating key prospecting
licences in the country with a view to expanding our existing
reserves and resources as well as to discovering new world-class
gold deposits,” he said.
KIBALI SET TO ROLL OUT NEW 10-YEAR PLAN ON BACK OF
PRODUCTION RAMP-UP AND RESERVE REPLACEMENT
Africa’s biggest gold mine, Kibali, stepped up
production significantly in the past quarter as part of its planned
ramp-up and is well on track to achieve its annual guidance. At the
same time, successful exploration is expected to more than replace
reserves depleted by mining again this year.
Briefing media in Kinshasa, Mark Bristow said the 10-year-old
mine was now rolling out its business plan for the next decade,
securing its status as one of the company’s elite portfolio of Tier
One mines — those capable of producing 500,000 ounces or more of
gold for at least 10 years at a cost below the industry
average.
The mine draws most of its power from its three hydropower
stations on the Kibali river. A planned 16MW solar farm, designed
to back up the hydropower during the Democratic Republic of Congo’s
(DRC’s) dry season, is expected to increase the renewable power
contribution to the mine’s energy grid from 79% to 88%, with Kibali
running entirely on renewables during the wet season.
Bristow said the creation of a world-class mine and a thriving
local economy in one of the DRC’s remotest and least developed
regions represented a triumph for the successful partnership
between Barrick, the country’s government and its host
communities.
“Our stakeholders in the DRC have benefited enormously from
Kibali, which over the past 10 years has contributed $4.6 billion
to the country in the form of dividends, royalties and taxes. In
line with our local procurement policy, Kibali gives preference to
Congolese suppliers and contractors, who to date have received $2.5
billion from the mine,” Bristow said.
“Barrick’s commitment to the DRC is also evident from the
extensive support we have given the Garamba National Park,
contributing to the conservation of high value biodiversity. Most
recently we led the drive to reintroduce white rhinos to the park,
where they were last seen 17 years ago. Last month 16 of these
rhinos were successfully introduced to Garamba with a further 60
scheduled for delivery over the next three years.”
Kibali’s Cahier des Charges program launched eleven projects in
2023 with seven of these scheduled for completion this July. The
mine is investing $8.9 million in this program over five years. The
community development fund is also implementing a number of new
projects.
SUCCESSFUL EXPLORATION CONTINUES TO EXTEND TONGON’S LIFE
OF MINE
Originally scheduled for closure in 2020, the life of
Barrick’s Tongon gold mine continues to be extended through
successful exploration campaigns.
Tongon general manager Hilaire Diarra says that since Tongon
poured its first gold in 2010, the mine has contributed $2.2
billion to the Ivorian economy in the form of taxes, infrastructure
development, salaries and payments to local suppliers.
“Extending its life will help ensure that Tongon is still able
to share the value it creates with all its Ivorian stakeholders
continuing its investment in community infrastructure development
and income-generating projects. Exploration has further delivered
the Seydou North, Tongon West and Djinni satellite targets adding
to the life of mine. Barrick has now also been awarded a new
exploration permit for Boundiali and drilling is ongoing at the
Fonondara conversion project,” he said.
“In spite of the fact that throughout its life Tongon has had to
contend with serious operational issues, as well as a challenging
socio-political environment, since pouring first gold it has never
had an unprofitable quarter, which is a tribute to the dedication
of the mine’s successive management teams. At the halfway mark of
this year, it is on track to once again achieve its annual
production guidance.”
SUCCESSFUL PARTNERSHIP WILL KEEP GOLD SHINING FOR
MALI
The 26-year-long partnership between Barrick (previously
Randgold) and the state of Mali has built the country’s gold mining
industry into a world leader and positioned it strongly for further
growth, says Mark Bristow.
Speaking at a media briefing at the Loulo-Gounkoto complex,
Bristow said the complex was one of the world’s top 10 gold
producers and the biggest business in terms of enterprise value in
the whole of West Africa. Together with the Morila mine, the
complex has contributed $9.3 billion to the Malian economy and
accounted for between 5% and 10% of the country’s GDP over the past
10 years. Loulo-Gounkoto is one of Mali’s largest taxpayers and
employers, with a workforce of some 7,000, 97% of whom are Malian
nationals. Over the life of the complex the state has received more
than 70% of the economic benefits it created.
“We are continuing to invest in the future of Loulo-Gounkoto.
Successful exploration is more than replacing the ounces we mine as
well as identifying new growth opportunities with the potential to
deliver the next generation of major discoveries in the Loulo
region. The new underground mine at Gounkoto – the complex’s third
– has developed its first production stopes and the Yalea South
cutback is ahead of plan,” Bristow said.
“We foresee that the complex will be a major contributor to the
Malian economy for years to come. The achievement of that vision
will require the continued commitment to the mutually rewarding
partnership which has brought us this far and delivered sustainable
benefits to all stakeholders, including the country’s
citizens.”
In line with Barrick’s global policy of local procurement,
Malian suppliers accounted for 74% of the complex’s purchases,
amounting to $298 million, during the first half of this year.
Turning to Loulo-Gounkoto’s operations, Bristow said the complex
was continuing to perform strongly and was on track to achieve its
production guidance for this year. It remains tightly focused on
the safety of its workers and there were no lost-time injuries
again during the past quarter.
As part of Barrick’s transition to renewable energy, the complex
is extending its solar power installation by 48MW and battery
storage system by 38MVA. The project is already feeding 10MW into
the mines micro-grid and it is expected that its second phase will
be commissioned well ahead of the current end-2024 completion
date.
HERITAGE FUND WILDLIFE ENDOWMENT SUPPORTS HABITAT
ENHANCEMENT AND RESTORATION PROJECTS
NGM has established a new Wildlife Endowment, created as
an extension of the company’s non-profit employee giving program,
the Heritage Fund.
The Wildlife Endowment was established in partnership with the
Nevada Department of Wildlife (NDOW) as a sustainable environmental
fund dedicated to wildlife habitat enhancement and restoration
projects supporting wildland fire prevention, restoration, and
riparian and stream health initiatives across Nevada.
The Heritage Fund recently approved $5 million of the $20
million commitment by NGM to be earmarked for Wildlife Endowment
funding. Once fully funded in mid-2025, any environmental entity
able to leverage qualified State or Federal matching grants whose
efforts fit within fire prevention, restoration, and riparian and
stream health categories will have the opportunity to request
funding.
One of the many benefits of the Wildlife Endowment is its
accessibility to NGM employees, who will have the opportunity to
easily donate to the fund and receive an additional 120% NGM
match.
“We are very proud of this new environmental endowment, as it
aligns with the Heritage Fund’s mission of supporting the
sustainability of community programs and initiatives. It is a clear
demonstration of our commitment to environmental stewardship
alongside NDOW and other environmental agencies who are already
doing great work in our communities and across the state,” says NGM
executive managing director Peter Richardson.
VELADERO RECOGNIZED AS FIRST ARGENTINE MINE
TO IMPLEMENT TSM STANDARD
Veladero has become the first mine in Argentina to
achieve compliance with the Towards Sustainable Mining (TSM)
Standard, earning a special distinction from the Argentine Chamber
of Mining (CAEM) during the Arminera 2023 summit, the industry's
flagship event in the country.
“Attaining TSM verification for Veladero is a testament to our
commitment to society, especially our employees, neighbouring
communities, and future generations, in developing sustainable
mining practices. The transformation effort at Veladero spanned
four years of intense work across all departments in the company.
Veladero has confirmed its status as an open and transparent
partner, fully accountable to society,” said Marcelo Álvarez,
executive director of government relations for Barrick South
America, upon receiving the special mention.
Towards Sustainable Mining is a standard developed by the Mining
Association of Canada (MAC) that sets quality and control standards
to ensure responsible and transparent mining operations. The system
consists of protocols with ratings that cover the most relevant
environmental and social aspects, including biodiversity
conservation, community engagement, human rights, and mine closure,
among others.
BARRICK TARGETS 2028 FOR FIRST PRODUCTION FROM REKO
DIQ
Mark Bristow says with the updated feasibility study on
the giant Reko Diq copper-gold project making rapid progress, the
company is aiming to start production in 2028.
Speaking at the inaugural session of Pakistan’s first Minerals
Summit on August 1, Bristow said the signing of the New Reko Diq
agreement last year was a landmark event in the development of a
mining industry in Pakistan, a process which will be accelerated by
the Minerals Summit.
“I hope the momentum created by this event will be sustained by
successive efforts to unlock this sector’s full potential and build
its capacity by attracting other foreign investors to follow
Barrick, to the lasting benefit of Pakistan and its people,” he
said.
“There is a growing demand for metals and minerals, especially
copper, and the challenge for mining companies and their host
governments is to ensure that these resources are extracted in a
responsible and equitable manner. Barrick believes in the principle
of mutual advantage and shares the value its operations create with
all stakeholders, including its host countries and
communities.”
Bristow noted that Reko Diq was the latest manifestation of
Barrick’s partnership model, already successfully applied elsewhere
in its global portfolio. Barrick owns 50% of Reko Diq and is
developing and will operate the mine. The Balochistan province,
which hosts the deposit, has a 25% share and the federal government
holds the other 25% through state-owned entities.15
REKO DIQ CONSTITUTES COMMUNITY DEVELOPMENT COMMITTEE FOR
LOCALLY DRIVEN DEVELOPMENT
The Reko Diq Mining Company has constituted a 25-member
Community Development Committee (CDC) at Nokkundi, the nearest town
to Reko Diq, in the Chagai district of Balochistan. The CDC
comprises local stakeholders and community leaders who will guide
the company’s social investment plan in the area.
Reko Diq country manager Ali Ehsan Rind said: “In all its
operations worldwide, Barrick strives to be a good corporate
citizen and a genuine partner of the host communities in locally
led development. With the formation of this CDC, representing all
the key local stakeholders, I am confident that our work will
become a catalyst for the social development of the local
communities.”
The Nokkundi CDC, formed after an extensive consultation
process, has the responsibility to identify social investment
initiatives to be undertaken by the company. It is a concrete step
to ensuring that Reko Diq delivers social investment projects of
significant and lasting benefit to the local communities among whom
it will operate.
Reko Diq will be a multi-generational mine with a life of at
least 40 years. During peak construction the project is expected to
employ 7,500 people and once in production it will create some
4,000 long-term jobs. Barrick’s policy of prioritizing local
employment and suppliers will have a positive impact on the local
economy.
The company plans to complete the Reko Diq feasibility study
update by the end of 2024, with 2028 targeted for first production
from the giant copper-gold mine in the country’s Balochistan
province. The new Reko Diq agreement ensures that benefits from the
project start accruing to the people of Balochistan well before the
mine goes into production through advancing royalties and social
development investments.
APPENDIX
2023 Operating and Capital Expenditure
Guidance
GOLD PRODUCTION AND COSTS |
|
2023 forecast attributable production (000s oz) |
2023 forecast cost of sales8 ($/oz) |
2023 forecast total cash costs9 ($/oz) |
2023 forecast all-in sustaining costs9 ($/oz) |
Carlin (61.5%) |
910 - 1,000 |
1,030 - 1,110 |
820 - 880 |
1,250 - 1,330 |
Cortez (61.5%)16 |
580 - 650 |
1,080 - 1,160 |
680 - 740 |
930 - 1,010 |
Turquoise Ridge (61.5%) |
300 - 340 |
1,290 - 1,370 |
900 - 960 |
1,170 - 1,250 |
Phoenix (61.5%) |
100 - 120 |
1,860 - 1,940 |
880 - 940 |
1,110 - 1,190 |
Long Canyon (61.5%) |
0 - 10 |
2,120 - 2,200 |
730 - 790 |
1,080 - 1,160 |
Nevada Gold Mines (61.5%) |
1,900 - 2,100 |
1,140 - 1,220 |
790 - 850 |
1,140 - 1,220 |
Hemlo |
150 - 170 |
1,400 - 1,480 |
1,210 - 1,270 |
1,590 - 1,670 |
North America |
2,100 - 2,300 |
1,160 - 1,240 |
820 - 880 |
1,170 - 1,250 |
|
|
|
|
|
Pueblo Viejo (60%) |
470 - 520 |
1,130 - 1,210 |
710 - 770 |
960 - 1,040 |
Veladero (50%) |
160 - 180 |
1,630 - 1,710 |
1,060 - 1,120 |
1,550 - 1,630 |
Porgera (47.5%)13 |
— |
— |
— |
— |
Latin America & Asia Pacific |
630 - 700 |
1,260 - 1,340 |
800 - 860 |
1,110 - 1,190 |
|
|
|
|
|
Loulo-Gounkoto (80%) |
510 - 560 |
1,100 - 1,180 |
750 - 810 |
1,070 - 1,150 |
Kibali (45%) |
320 - 360 |
1,080 - 1,160 |
710 - 770 |
880 - 960 |
North Mara (84%) |
230 - 260 |
1,120 - 1,200 |
900 - 960 |
1,240 - 1,320 |
Bulyanhulu (84%) |
160 - 190 |
1,230 - 1,310 |
880 - 940 |
1,160 - 1,240 |
Tongon (89.7%) |
180 - 210 |
1,260 - 1,340 |
1,070 - 1,130 |
1,240 - 1,320 |
Africa & Middle East |
1,450 - 1,600 |
1,130 - 1,210 |
820 - 880 |
1,080 - 1,160 |
|
|
|
|
|
Total Attributable to
Barrick17,18,19 |
4,200 - 4,600 |
1,170 - 1,250 |
820 - 880 |
1,170 - 1,250 |
|
|
|
|
|
COPPER PRODUCTION AND COSTS |
|
2023 forecast attributable production (Mlbs) |
2023 forecast cost of sales8 ($/lb) |
2023 forecast C1 cash costs9 ($/lb) |
2023 forecast all-in sustaining costs9 ($/lb) |
Lumwana |
260 - 290 |
2.45 - 2.75 |
2.00 - 2.20 |
3.20 - 3.50 |
Zaldívar (50%) |
100 - 110 |
3.40 - 3.70 |
2.60 - 2.80 |
2.90 - 3.20 |
Jabal Sayid (50%) |
65 - 75 |
1.80 - 2.10 |
1.50 - 1.70 |
1.60 - 1.90 |
Total Attributable to
Barrick19 |
420 - 470 |
2.60 - 2.90 |
2.05 - 2.25 |
2.95 - 3.25 |
|
|
|
|
|
ATTRIBUTABLE CAPITAL EXPENDITURES |
|
|
|
|
($ millions) |
|
|
|
Attributable minesite sustaining6 |
1,450 - 1,700 |
|
|
|
Attributable project6 |
750 - 900 |
|
|
|
Total attributable capital
expenditures6 |
2,200 - 2,600 |
|
|
|
2023 OUTLOOK ASSUMPTIONS AND ECONOMIC
SENSITIVITY ANALYSIS
|
2023 Guidance Assumption |
Hypothetical Change |
Impact on EBITDA20 (millions) |
Impact on TCC and AISC9,10 |
Gold price sensitivity |
$1,650/oz |
+/- $100/oz |
‘+/-$590 |
‘+/-$5/oz |
Copper
price sensitivity |
$3.50/lb |
+/- $0.25/lb |
‘+/- $110 |
‘+/-$0.01/lb |
Production and Cost Summary - Gold
|
For the three months ended |
|
6/30/23 |
3/31/23 |
% Change |
6/30/22 |
% Change |
Nevada Gold Mines LLC
(61.5%)a |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
458 |
416 |
10 |
% |
462 |
(1 |
)% |
Gold produced (000s oz 100% basis) |
744 |
676 |
10 |
% |
751 |
(1 |
)% |
Cost of sales ($/oz) |
1,357 |
1,461 |
(7 |
)% |
1,171 |
16 |
% |
Total cash costs ($/oz)b |
1,009 |
1,074 |
(6 |
)% |
856 |
18 |
% |
All-in sustaining costs ($/oz)b |
1,388 |
1,436 |
(3 |
)% |
1,238 |
12 |
% |
Carlin (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
248 |
166 |
49 |
% |
243 |
2 |
% |
Gold produced (000s oz 100% basis) |
403 |
270 |
49 |
% |
394 |
2 |
% |
Cost of sales ($/oz) |
1,240 |
1,449 |
(14 |
)% |
1,042 |
19 |
% |
Total cash costs ($/oz)b |
1,013 |
1,215 |
(17 |
)% |
862 |
18 |
% |
All-in sustaining costs ($/oz)b |
1,407 |
1,689 |
(17 |
)% |
1,192 |
18 |
% |
Cortez (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
110 |
140 |
(21 |
)% |
97 |
13 |
% |
Gold produced (000s oz 100% basis) |
178 |
226 |
(21 |
)% |
158 |
13 |
% |
Cost of sales ($/oz) |
1,346 |
1,324 |
2 |
% |
1,168 |
15 |
% |
Total cash costs ($/oz)b |
972 |
913 |
6 |
% |
850 |
14 |
% |
All-in sustaining costs ($/oz)b |
1,453 |
1,233 |
18 |
% |
1,538 |
(6 |
)% |
Turquoise Ridge (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
68 |
81 |
(16 |
)% |
75 |
(9 |
)% |
Gold produced (000s oz 100% basis) |
112 |
131 |
(16 |
)% |
122 |
(9 |
)% |
Cost of sales ($/oz) |
1,466 |
1,412 |
4 |
% |
1,289 |
14 |
% |
Total cash costs ($/oz)b |
1,088 |
1,034 |
5 |
% |
928 |
17 |
% |
All-in sustaining costs ($/oz)b |
1,302 |
1,271 |
2 |
% |
1,195 |
9 |
% |
Phoenix (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
29 |
27 |
7 |
% |
26 |
12 |
% |
Gold produced (000s oz 100% basis) |
46 |
45 |
7 |
% |
43 |
12 |
% |
Cost of sales ($/oz) |
2,075 |
2,380 |
(13 |
)% |
2,114 |
(2 |
)% |
Total cash costs ($/oz)b |
948 |
1,198 |
(21 |
)% |
895 |
6 |
% |
All-in sustaining costs ($/oz)b |
1,132 |
1,365 |
(17 |
)% |
1,152 |
(2 |
)% |
Long Canyon (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
3 |
2 |
50 |
% |
21 |
(86 |
)% |
Gold produced (000s oz 100% basis) |
5 |
4 |
50 |
% |
34 |
(86 |
)% |
Cost of sales ($/oz) |
1,640 |
1,621 |
1 |
% |
1,280 |
28 |
% |
Total cash costs ($/oz)b |
637 |
579 |
10 |
% |
450 |
42 |
% |
All-in sustaining costs ($/oz)b |
677 |
629 |
8 |
% |
459 |
47 |
% |
Pueblo Viejo (60%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
77 |
89 |
(13 |
)% |
105 |
(27 |
)% |
Gold produced (000s oz 100% basis) |
128 |
149 |
(13 |
)% |
175 |
(27 |
)% |
Cost of sales ($/oz) |
1,344 |
1,241 |
8 |
% |
1,154 |
16 |
% |
Total cash costs ($/oz)b |
840 |
714 |
18 |
% |
724 |
16 |
% |
All-in sustaining costs ($/oz)b |
1,219 |
1,073 |
14 |
% |
1,024 |
19 |
% |
|
For the three months ended |
|
6/30/23 |
3/31/23 |
% Change |
6/30/22 |
% Change |
Loulo-Gounkoto (80%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
141 |
137 |
3 |
% |
140 |
1 |
% |
Gold produced (000s oz 100% basis) |
176 |
172 |
3 |
% |
175 |
1 |
% |
Cost of sales ($/oz) |
1,150 |
1,275 |
(10 |
)% |
1,093 |
5 |
% |
Total cash costs ($/oz)b |
801 |
855 |
(6 |
)% |
730 |
10 |
% |
All-in sustaining costs ($/oz)b |
1,245 |
1,190 |
5 |
% |
1,013 |
23 |
% |
Kibali (45%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
87 |
64 |
36 |
% |
81 |
7 |
% |
Gold produced (000s oz 100% basis) |
195 |
141 |
36 |
% |
180 |
7 |
% |
Cost of sales ($/oz) |
1,269 |
1,367 |
(7 |
)% |
1,164 |
9 |
% |
Total cash costs ($/oz)b |
797 |
987 |
(19 |
)% |
738 |
8 |
% |
All-in sustaining costs ($/oz)b |
955 |
1,177 |
(19 |
)% |
946 |
1 |
% |
Veladero (50%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
54 |
43 |
26 |
% |
58 |
(7 |
)% |
Gold produced (000s oz 100% basis) |
108 |
86 |
26 |
% |
116 |
(7 |
)% |
Cost of sales ($/oz) |
1,424 |
1,587 |
(10 |
)% |
1,369 |
4 |
% |
Total cash costs ($/oz)b |
999 |
1,035 |
(3 |
)% |
861 |
16 |
% |
All-in sustaining costs ($/oz)b |
1,599 |
1,761 |
(9 |
)% |
1,461 |
9 |
% |
Porgera (47.5%)d |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
— |
— |
— |
% |
— |
— |
% |
Gold produced (000s oz 100% basis) |
— |
— |
— |
% |
— |
— |
% |
Cost of sales ($/oz) |
— |
— |
— |
% |
— |
— |
% |
Total cash costs ($/oz)b |
— |
— |
— |
% |
— |
— |
% |
All-in sustaining costs ($/oz)b |
— |
— |
— |
% |
— |
— |
% |
Tongon (89.7%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
44 |
50 |
(12 |
)% |
41 |
7 |
% |
Gold produced (000s oz 100% basis) |
49 |
55 |
(12 |
)% |
46 |
7 |
% |
Cost of sales ($/oz) |
1,514 |
1,453 |
4 |
% |
2,025 |
(25 |
)% |
Total cash costs ($/oz)b |
1,380 |
1,182 |
17 |
% |
1,558 |
(11 |
)% |
All-in sustaining costs ($/oz)b |
1,465 |
1,284 |
14 |
% |
1,655 |
(11 |
)% |
Hemlo |
|
|
|
|
|
Gold produced (000s oz) |
35 |
41 |
(15 |
)% |
36 |
(3 |
)% |
Cost of sales ($/oz) |
1,562 |
1,486 |
5 |
% |
1,698 |
(8 |
)% |
Total cash costs ($/oz)b |
1,356 |
1,291 |
5 |
% |
1,489 |
(9 |
)% |
All-in sustaining costs ($/oz)b |
1,634 |
1,609 |
2 |
% |
1,804 |
(9 |
)% |
North Mara (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
64 |
68 |
(6 |
)% |
66 |
(3 |
)% |
Gold produced (000s oz 100% basis) |
77 |
81 |
(6 |
)% |
79 |
(3 |
)% |
Cost of sales ($/oz) |
1,208 |
987 |
22 |
% |
1,060 |
14 |
% |
Total cash costs ($/oz)b |
942 |
759 |
24 |
% |
756 |
25 |
% |
All-in sustaining costs ($/oz)b |
1,355 |
1,137 |
19 |
% |
957 |
42 |
% |
|
For the three months ended |
|
6/30/23 |
3/31/23 |
% Change |
6/30/22 |
% Change |
Bulyanhulu (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
49 |
44 |
11 |
% |
54 |
(9 |
)% |
Gold produced (000s oz 100% basis) |
58 |
53 |
11 |
% |
65 |
(9 |
)% |
Cost of sales ($/oz) |
1,231 |
1,358 |
(9 |
)% |
1,163 |
6 |
% |
Total cash costs ($/oz)b |
850 |
982 |
(13 |
)% |
836 |
2 |
% |
All-in sustaining costs ($/oz)b |
1,105 |
1,332 |
(17 |
)% |
1,094 |
1 |
% |
Total Attributable to
Barricke |
|
|
|
|
|
Gold produced (000s oz) |
1,009 |
952 |
6 |
% |
1,043 |
(3 |
)% |
Cost of sales ($/oz)f |
1,323 |
1,378 |
(4 |
)% |
1,216 |
9 |
% |
Total cash costs ($/oz)b |
963 |
986 |
(2 |
)% |
855 |
13 |
% |
All-in sustaining costs ($/oz)b |
1,355 |
1,370 |
(1 |
)% |
1,212 |
12 |
% |
- These results represent our 61.5% interest in Carlin, Cortez,
Turquoise Ridge, Phoenix and Long Canyon.
- Further information on these non-GAAP financial performance
measures, including detailed reconciliations, is included in the
endnotes to this press release.
- Includes Goldrush.
- As Porgera was placed on care and maintenance on April 25,
2020, no operating data or per ounce data is provided.
- Excludes Pierina, which is producing incidental ounces while in
closure.
- Gold cost of sales per ounce is calculated as cost of sales
across our gold operations (excluding sites in closure or care and
maintenance) divided by ounces sold (both on an attributable basis
using Barrick's ownership share).
Production and Cost Summary -
Copper
|
For the three months ended |
|
6/30/23 |
3/31/23 |
% Change |
6/30/22 |
% Change |
Lumwana |
|
|
|
|
|
Copper production (Mlbs) |
67 |
48 |
40 |
% |
75 |
(11)% |
Cost of sales ($/lb) |
2.80 |
3.56 |
(21)% |
2.01 |
39 |
% |
C1 cash costs ($/lb)a |
2.30 |
3.09 |
(26)% |
1.68 |
37 |
% |
All-in sustaining costs ($/lb)a |
3.29 |
3.98 |
(17)% |
3.28 |
— |
% |
Zaldívar
(50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
22 |
22 |
0 |
% |
25 |
(12)% |
Copper production (Mlbs 100% basis) |
43 |
44 |
0 |
% |
50 |
(12)% |
Cost of sales ($/lb) |
3.89 |
3.73 |
4 |
% |
2.88 |
35 |
% |
C1 cash costs ($/lb)a |
3.02 |
2.86 |
6 |
% |
2.17 |
39 |
% |
All-in sustaining costs ($/lb)a |
3.73 |
3.22 |
16 |
% |
2.65 |
41 |
% |
Jabal Sayid (50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
18 |
18 |
0 |
% |
20 |
(10)% |
Copper production (Mlbs 100% basis) |
35 |
37 |
0 |
% |
40 |
(10)% |
Cost of sales ($/lb) |
1.61 |
1.53 |
5 |
% |
1.45 |
11 |
% |
C1 cash costs ($/lb)a |
1.26 |
1.39 |
(9)% |
1.09 |
16 |
% |
All-in sustaining costs ($/lb)a |
1.42 |
1.61 |
(12)% |
1.19 |
19 |
% |
Total Attributable to Barrick |
|
|
|
|
|
Copper production (Mlbs) |
107 |
88 |
22 |
% |
120 |
(11)% |
Cost of sales ($/lb)b |
2.84 |
3.22 |
(12)% |
2.11 |
35 |
% |
C1 cash costs ($/lb)a |
2.28 |
2.71 |
(16)% |
1.70 |
34 |
% |
All-in sustaining costs ($/lb)a |
3.13 |
3.40 |
(8)% |
2.87 |
9 |
% |
- Further
information on these non-GAAP financial performance measures,
including detailed reconciliations, is included in the endnotes to
this press release.
- Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share).
Financial and Operating Highlights
|
For the three months ended |
|
For the six months ended |
|
6/30/23 |
3/31/23 |
% Change |
|
6/30/22 |
% Change |
|
6/30/23 |
6/30/22 |
% Change |
Financial Results($ millions) |
|
|
|
|
|
|
|
|
|
|
Revenues |
2,833 |
|
2,643 |
|
7% |
|
2,859 |
|
(1)% |
|
5,476 |
|
5,712 |
|
(4)% |
Cost of sales |
1,937 |
|
1,941 |
|
0% |
|
1,850 |
|
5% |
|
3,878 |
|
3,589 |
|
8% |
Net earningsa |
305 |
|
120 |
|
154% |
|
488 |
|
(38)% |
|
425 |
|
926 |
|
(54)% |
Adjusted net earningsb |
336 |
|
247 |
|
36% |
|
419 |
|
(20)% |
|
583 |
|
882 |
|
(34)% |
Adjusted EBITDAb |
1,368 |
|
1,183 |
|
16% |
|
1,527 |
|
(10)% |
|
2,551 |
|
3,172 |
|
(20)% |
Adjusted EBITDA marginc |
48% |
|
45% |
|
7% |
|
53% |
|
(9)% |
|
47% |
|
56% |
|
(16)% |
Minesite sustaining capital
expendituresb,d |
524 |
|
454 |
|
15% |
|
523 |
|
0% |
|
978 |
|
943 |
|
4% |
Project capital
expendituresb,d |
238 |
|
226 |
|
5% |
|
226 |
|
5% |
|
464 |
|
412 |
|
13% |
Total consolidated capital
expendituresd,e |
769 |
|
688 |
|
12% |
|
755 |
|
2% |
|
1,457 |
|
1,366 |
|
7% |
Net cash provided by operating
activities |
832 |
|
776 |
|
7% |
|
924 |
|
(10)% |
|
1,608 |
|
1,928 |
|
(17)% |
Net cash provided by operating
activities marginf |
29% |
|
29% |
|
0% |
|
32% |
|
(9)% |
|
29% |
|
34% |
|
(15)% |
Free cash flowb |
63 |
|
88 |
|
(28)% |
|
169 |
|
(63)% |
|
151 |
|
562 |
|
(73)% |
Net earnings per share (basic and
diluted) |
0.17 |
|
0.07 |
|
143% |
|
0.27 |
|
(37)% |
|
0.24 |
|
0.52 |
|
(54)% |
Adjusted net earnings
(basic)bper share |
0.19 |
|
0.14 |
|
36% |
|
0.24 |
|
(21)% |
|
0.33 |
|
0.50 |
|
(34)% |
Weighted average diluted common shares (millions of shares) |
1,755 |
|
1,755 |
|
0% |
|
1,777 |
|
(1)% |
|
1,755 |
|
1,778 |
|
(1)% |
Operating Results |
|
|
|
|
|
|
|
|
|
|
Gold production (thousands of
ounces)g |
1,009 |
|
952 |
|
6% |
|
1,043 |
|
(3)% |
|
1,961 |
|
2,033 |
|
(4)% |
Gold sold (thousands of
ounces)g |
1,001 |
|
954 |
|
5% |
|
1,040 |
|
(4)% |
|
1,955 |
|
2,033 |
|
(4)% |
Market gold price ($/oz) |
1,976 |
|
1,890 |
|
5% |
|
1,871 |
|
6% |
|
1,932 |
|
1,874 |
|
3% |
Realized gold priceb,g($/oz) |
1,972 |
|
1,902 |
|
4% |
|
1,861 |
|
6% |
|
1,938 |
|
1,868 |
|
4% |
Gold cost of sales (Barrick’s
share)g,h($/oz) |
1,323 |
|
1,378 |
|
(4)% |
|
1,216 |
|
9% |
|
1,350 |
|
1,203 |
|
12% |
Gold total cash
costsb,g($/oz) |
963 |
|
986 |
|
(2)% |
|
855 |
|
13% |
|
974 |
|
844 |
|
15% |
Gold all-in sustaining
costsb,g($/oz) |
1,355 |
|
1,370 |
|
(1)% |
|
1,212 |
|
12% |
|
1,362 |
|
1,188 |
|
15% |
Copper production (millions of
pounds)g |
107 |
|
88 |
|
22% |
|
120 |
|
(11)% |
|
195 |
|
221 |
|
(12)% |
Copper sold (millions of
pounds)g |
101 |
|
89 |
|
13% |
|
113 |
|
(11)% |
|
190 |
|
226 |
|
(16)% |
Market copper price ($/lb) |
3.84 |
|
4.05 |
|
(5)% |
|
4.32 |
|
(11)% |
|
3.95 |
|
4.43 |
|
(11)% |
Realized copper
priceb,g($/lb) |
3.70 |
|
4.20 |
|
(12)% |
|
3.72 |
|
(1)% |
|
3.93 |
|
4.20 |
|
(6)% |
Copper cost of sales (Barrick’s
share)g,i($/lb) |
2.84 |
|
3.22 |
|
(12)% |
|
2.11 |
|
35% |
|
3.02 |
|
2.16 |
|
40% |
Copper C1 cash
costsb,g($/lb) |
2.28 |
|
2.71 |
|
(16)% |
|
1.70 |
|
34% |
|
2.48 |
|
1.75 |
|
42% |
Copper all-in sustaining
costsb,g($/lb) |
3.13 |
|
3.40 |
|
(8)% |
|
2.87 |
|
9% |
|
3.26 |
|
2.86 |
|
14% |
|
As at 6/30/23 |
As at 3/31/23 |
% Change |
|
As at 6/30/22 |
% Change |
|
|
|
|
Financial Position($ millions) |
|
|
|
|
|
|
|
|
|
|
Debt (current and long-term) |
4,774 |
|
4,777 |
|
0% |
|
5,144 |
|
(7)% |
|
|
|
|
Cash and equivalents |
4,157 |
|
4,377 |
|
(5)% |
|
5,780 |
|
(28)% |
|
|
|
|
Debt, net of cash |
617 |
|
400 |
|
54% |
|
(636) |
|
197% |
|
|
|
|
- Net earnings represents net earnings attributable to the equity
holders of the Company.
- Further information on these non-GAAP financial performance
measures, including detailed reconciliations, is included in the
endnotes to this press release.
- Represents adjusted EBITDA divided by revenue.
- Amounts presented on a consolidated
cash basis. Project capital expenditures are included in our
calculation of all-in costs, but not included in our calculation of
all-in sustaining costs.
- Total consolidated capital
expenditures also includes capitalized interest of $7 million and
$15 million, respectively, for the three and six month periods
ended June 30, 2023 (March 31, 2023: $8 million and
June 30, 2022: $6 million and $11 million,
respectively).
- Represents net cash provided by
operating activities divided by revenue.
- On an attributable basis.
- Gold cost of sales per ounce is
calculated as cost of sales across our gold operations (excluding
sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using Barrick's ownership
share).
- Copper cost of sales per pound is
calculated as cost of sales across our copper operations divided by
pounds sold (both on an attributable basis using Barrick's
ownership share).
Consolidated Statements of Income
Barrick
Gold Corporation(in millions of United States dollars, except per
share data) (Unaudited) |
Three months ended June 30, |
Six months ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue (notes 4 and 5) |
$ |
2,833 |
|
$ |
2,859 |
|
$ |
5,476 |
|
$ |
5,712 |
|
Costs and expenses (income) |
|
|
|
|
Cost of sales (notes 4 and
6) |
|
1,937 |
|
|
1,850 |
|
|
3,878 |
|
|
3,589 |
|
General and administrative
expenses |
|
28 |
|
|
30 |
|
|
67 |
|
|
84 |
|
Exploration, evaluation and
project expenses |
|
101 |
|
|
100 |
|
|
172 |
|
|
167 |
|
Impairment charges (notes 8b and
12) |
|
22 |
|
|
3 |
|
|
23 |
|
|
5 |
|
(Gain) loss on currency
translation |
|
(12 |
) |
|
6 |
|
|
26 |
|
|
9 |
|
Closed mine rehabilitation |
|
(13 |
) |
|
(128 |
) |
|
9 |
|
|
(125 |
) |
Income from equity investees
(note 11) |
|
(58 |
) |
|
(89 |
) |
|
(111 |
) |
|
(188 |
) |
Other expense (income) (note 8a) |
|
18 |
|
|
2 |
|
|
70 |
|
|
(9 |
) |
Income before finance costs and income taxes |
$ |
810 |
|
$ |
1,085 |
|
$ |
1,342 |
|
$ |
2,180 |
|
Finance costs, net |
|
(44 |
) |
|
(89 |
) |
|
(102 |
) |
|
(177 |
) |
Income before income taxes |
$ |
766 |
|
$ |
996 |
|
$ |
1,240 |
|
$ |
2,003 |
|
Income tax expense (note 9) |
|
(264 |
) |
|
(279 |
) |
|
(469 |
) |
|
(580 |
) |
Net income |
$ |
502 |
|
$ |
717 |
|
$ |
771 |
|
$ |
1,423 |
|
Attributable to: |
|
|
|
|
Equity holders of Barrick Gold
Corporation |
$ |
305 |
|
$ |
488 |
|
$ |
425 |
|
$ |
926 |
|
Non-controlling interests (note 15) |
$ |
197 |
|
$ |
229 |
|
$ |
346 |
|
$ |
497 |
|
|
|
|
|
|
Earnings per share
data attributable to the equity holders of Barrick Gold Corporation
(note 7) |
|
|
|
|
Net income |
|
|
|
|
Basic |
$ |
0.17 |
|
$ |
0.27 |
|
$ |
0.24 |
|
$ |
0.52 |
|
Diluted |
$ |
0.17 |
|
$ |
0.27 |
|
$ |
0.24 |
|
$ |
0.52 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2023
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Statements of Comprehensive
Income
Barrick
Gold Corporation(in millions of United States dollars)
(Unaudited) |
Three months ended June 30, |
Six months ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net
income |
$ |
502 |
|
$ |
717 |
|
$ |
771 |
|
$ |
1,423 |
|
Other comprehensive
income (loss), net of taxes |
|
|
|
|
Items that may be
reclassified subsequently to profit or loss: |
|
|
|
|
Currency translation adjustments,
net of tax $nil, $nil, $nil and $nil |
|
— |
|
|
1 |
|
|
(3 |
) |
|
1 |
|
Items that will not be
reclassified to profit or loss: |
|
|
|
|
Actuarial loss on post employment
benefit obligations, net of tax $nil, $nil, $nil and $nil |
|
— |
|
|
(1 |
) |
|
— |
|
|
(1 |
) |
Net change on equity investments,
net of tax $(1), $2, $(1) and $(6) |
|
(5 |
) |
|
(26 |
) |
|
(5 |
) |
|
32 |
|
Total other comprehensive (loss) income |
|
(5 |
) |
|
(26 |
) |
|
(8 |
) |
|
32 |
|
Total comprehensive income |
$ |
497 |
|
$ |
691 |
|
$ |
763 |
|
$ |
1,455 |
|
Attributable to: |
|
|
|
|
Equity holders of Barrick Gold
Corporation |
$ |
300 |
|
$ |
462 |
|
$ |
417 |
|
$ |
958 |
|
Non-controlling interests |
$ |
197 |
|
$ |
229 |
|
$ |
346 |
|
$ |
497 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2023
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Statements of Cash Flow
Barrick
Gold Corporation(in millions of United States dollars)
(Unaudited) |
Three months ended June 30, |
Six months ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
OPERATING ACTIVITIES |
|
|
|
|
Net income |
$ |
502 |
|
$ |
717 |
|
$ |
771 |
|
$ |
1,423 |
|
Adjustments for the following
items: |
|
|
|
|
Depreciation |
|
480 |
|
|
476 |
|
|
975 |
|
|
936 |
|
Finance costs, net1 |
|
44 |
|
|
89 |
|
|
102 |
|
|
177 |
|
Impairment charges (notes 8b and 12) |
|
22 |
|
|
3 |
|
|
23 |
|
|
5 |
|
Income tax expense (note 9) |
|
264 |
|
|
279 |
|
|
469 |
|
|
580 |
|
Income from equity investees (note 11) |
|
(58 |
) |
|
(89 |
) |
|
(111 |
) |
|
(188 |
) |
Gain on sale of non-current assets |
|
(3 |
) |
|
(20 |
) |
|
(6 |
) |
|
(22 |
) |
(Gain) loss on currency translation |
|
(12 |
) |
|
6 |
|
|
26 |
|
|
9 |
|
Change in working capital
(note 10) |
|
(45 |
) |
|
(34 |
) |
|
(251 |
) |
|
(165 |
) |
Other
operating activities (note 10) |
|
(51 |
) |
|
(126 |
) |
|
1 |
|
|
(203 |
) |
Operating cash flows before interest and income taxes |
|
1,143 |
|
|
1,301 |
|
|
1,999 |
|
|
2,552 |
|
Interest paid |
|
(130 |
) |
|
(129 |
) |
|
(153 |
) |
|
(152 |
) |
Interest received1 |
|
51 |
|
|
12 |
|
|
100 |
|
|
22 |
|
Income
taxes paid2 |
|
(232 |
) |
|
(260 |
) |
|
(338 |
) |
|
(494 |
) |
Net cash provided by operating activities |
|
832 |
|
|
924 |
|
|
1,608 |
|
|
1,928 |
|
INVESTING ACTIVITIES |
|
|
|
|
Property, plant and
equipment |
|
|
|
|
Capital expenditures (note 4) |
|
(769 |
) |
|
(755 |
) |
|
(1,457 |
) |
|
(1,366 |
) |
Sales proceeds |
|
3 |
|
|
22 |
|
|
6 |
|
|
23 |
|
Investment sales |
|
— |
|
|
122 |
|
|
— |
|
|
382 |
|
Dividends received from equity
method investments (note 11) |
|
18 |
|
|
310 |
|
|
85 |
|
|
669 |
|
Shareholder loan repayments from equity method investments (note
11) |
|
5 |
|
|
— |
|
|
5 |
|
|
— |
|
Net cash used in investing activities |
|
(743 |
) |
|
(301 |
) |
|
(1,361 |
) |
|
(292 |
) |
FINANCING ACTIVITIES |
|
|
|
|
Lease repayments |
|
(4 |
) |
|
(4 |
) |
|
(8 |
) |
|
(10 |
) |
Dividends |
|
(174 |
) |
|
(353 |
) |
|
(349 |
) |
|
(531 |
) |
Share buyback program |
|
— |
|
|
(173 |
) |
|
— |
|
|
(173 |
) |
Funding from non-controlling
interests (note 15) |
|
10 |
|
|
— |
|
|
10 |
|
|
— |
|
Disbursements to
non-controlling interests (note 15) |
|
(162 |
) |
|
(232 |
) |
|
(224 |
) |
|
(499 |
) |
Pueblo
Viejo JV partner shareholder loan |
|
21 |
|
|
35 |
|
|
41 |
|
|
80 |
|
Net cash used in financing activities |
|
(309 |
) |
|
(727 |
) |
|
(530 |
) |
|
(1,133 |
) |
Effect of exchange rate changes on cash and
equivalents |
|
— |
|
|
(3 |
) |
|
— |
|
|
(3 |
) |
Net increase (decrease) in cash and equivalents |
|
(220 |
) |
|
(107 |
) |
|
(283 |
) |
|
500 |
|
Cash and equivalents at the beginning of
period |
|
4,377 |
|
|
5,887 |
|
|
4,440 |
|
|
5,280 |
|
Cash and equivalents at the end of period |
$ |
4,157 |
|
$ |
5,780 |
|
$ |
4,157 |
|
$ |
5,780 |
|
- 2022 figures have been restated to reflect the change in
presentation to present interest received ($12 million for the
three months ended and $22 million for the six months ended June
30, 2022) separately from finance costs.
- Income taxes paid excludes $28 million (2022:
$10 million) for the three months ended June 30, 2023 and
$56 million (2022: $36 million) for the six months ended
June 30, 2023 of income taxes payable that were settled against
offsetting value added tax (“VAT”) receivables.
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2023
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Balance Sheets
Barrick Gold Corporation |
As at June 30, |
As at December 31, |
(in
millions of United States dollars) (Unaudited) |
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
Current assets |
|
|
Cash and equivalents |
$ |
4,157 |
|
$ |
4,440 |
|
Accounts receivable |
|
603 |
|
|
554 |
|
Inventories |
|
1,868 |
|
|
1,781 |
|
Other current assets (note 13b) |
|
742 |
|
|
1,690 |
|
Total current assets |
$ |
7,370 |
|
$ |
8,465 |
|
Non-current assets |
|
|
Equity in investees (note 11) |
|
4,004 |
|
|
3,983 |
|
Property, plant and equipment |
|
26,311 |
|
|
25,821 |
|
Goodwill |
|
3,581 |
|
|
3,581 |
|
Intangible assets |
|
149 |
|
|
149 |
|
Deferred income tax assets |
|
19 |
|
|
19 |
|
Non-current portion of inventory |
|
2,765 |
|
|
2,819 |
|
Other assets |
|
1,087 |
|
|
1,128 |
|
Total assets |
$ |
45,286 |
|
$ |
45,965 |
|
LIABILITIES AND EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$ |
1,525 |
|
$ |
1,556 |
|
Debt |
|
13 |
|
|
13 |
|
Current income tax liabilities |
|
320 |
|
|
163 |
|
Other current liabilities (note 13b) |
|
412 |
|
|
1,388 |
|
Total current liabilities |
$ |
2,270 |
|
$ |
3,120 |
|
Non-current liabilities |
|
|
Debt |
|
4,761 |
|
|
4,769 |
|
Provisions |
|
2,181 |
|
|
2,211 |
|
Deferred income tax liabilities |
|
3,286 |
|
|
3,247 |
|
Other liabilities |
|
1,303 |
|
|
1,329 |
|
Total liabilities |
$ |
13,801 |
|
$ |
14,676 |
|
Equity |
|
|
Capital stock (note 14) |
$ |
28,116 |
|
$ |
28,114 |
|
Deficit |
|
(7,208 |
) |
|
(7,282 |
) |
Accumulated other comprehensive income (loss) |
|
18 |
|
|
26 |
|
Other |
|
1,913 |
|
|
1,913 |
|
Total equity attributable to Barrick Gold Corporation
shareholders |
$ |
22,839 |
|
$ |
22,771 |
|
Non-controlling interests (note 15) |
|
8,646 |
|
|
8,518 |
|
Total equity |
$ |
31,485 |
|
$ |
31,289 |
|
Contingencies and commitments (notes 4 and 16) |
|
|
Total liabilities and equity |
$ |
45,286 |
|
$ |
45,965 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2023
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Statements of Changes in
Equity
Barrick
Gold Corporation |
|
Attributable to equity holders of the company |
|
|
(in millions of United States dollars) (Unaudited) |
Common Shares (in thousands) |
Capital stock |
Retained earnings (deficit) |
Accumulated other comprehensive income (loss)1 |
Other2 |
Total equity attributable to shareholders |
Non-controlling interests |
Total equity |
At January 1, 2023 |
1,755,350 |
|
$ |
28,114 |
|
($ |
7,282 |
) |
$ |
26 |
|
$ |
1,913 |
|
$ |
22,771 |
|
$ |
8,518 |
|
$ |
31,289 |
|
Net income |
— |
|
|
— |
|
|
425 |
|
|
— |
|
|
— |
|
|
425 |
|
|
346 |
|
|
771 |
|
Total other comprehensive loss |
— |
|
|
— |
|
|
— |
|
|
(8 |
) |
|
— |
|
|
(8 |
) |
|
— |
|
|
(8 |
) |
Total comprehensive income (loss) |
— |
|
|
— |
|
|
425 |
|
|
(8 |
) |
|
— |
|
|
417 |
|
|
346 |
|
|
763 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(349 |
) |
|
— |
|
|
— |
|
|
(349 |
) |
|
— |
|
|
(349 |
) |
Funding from non-controlling interests (note 15) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
|
10 |
|
Disbursements to non-controlling interests (note 15) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(228 |
) |
|
(228 |
) |
Dividend reinvestment plan (note 14) |
118 |
|
|
2 |
|
|
(2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total transactions with owners |
118 |
|
|
2 |
|
|
(351 |
) |
|
— |
|
|
— |
|
|
(349 |
) |
|
(218 |
) |
|
(567 |
) |
At June 30, 2023 |
1,755,468 |
|
$ |
28,116 |
|
($ |
7,208 |
) |
$ |
18 |
|
$ |
1,913 |
|
$ |
22,839 |
|
$ |
8,646 |
|
$ |
31,485 |
|
|
|
|
|
|
|
|
|
|
At January 1, 2022 |
1,779,331 |
|
$ |
28,497 |
|
($ |
6,566 |
) |
($ |
23 |
) |
$ |
1,949 |
|
$ |
23,857 |
|
$ |
8,450 |
|
$ |
32,307 |
|
Net income |
— |
|
|
— |
|
|
926 |
|
|
— |
|
|
— |
|
|
926 |
|
|
497 |
|
|
1,423 |
|
Total other comprehensive income |
— |
|
|
— |
|
|
— |
|
|
32 |
|
|
— |
|
|
32 |
|
|
— |
|
|
32 |
|
Total comprehensive income |
— |
|
|
— |
|
|
926 |
|
|
32 |
|
|
— |
|
|
958 |
|
|
497 |
|
|
1,455 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(531 |
) |
|
— |
|
|
— |
|
|
(531 |
) |
|
— |
|
|
(531 |
) |
Disbursements to non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(524 |
) |
|
(524 |
) |
Dividend reinvestment plan |
105 |
|
|
2 |
|
|
(2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Share buyback program |
(8,500 |
) |
|
(136 |
) |
|
— |
|
|
— |
|
|
(37 |
) |
|
(173 |
) |
|
— |
|
|
(173 |
) |
Total transactions with owners |
(8,395 |
) |
|
(134 |
) |
|
(533 |
) |
|
— |
|
|
(37 |
) |
|
(704 |
) |
|
(524 |
) |
|
(1,228 |
) |
At June 30, 2022 |
1,770,936 |
|
$ |
28,363 |
|
($ |
6,173 |
) |
$ |
9 |
|
$ |
1,912 |
|
$ |
24,111 |
|
$ |
8,423 |
|
$ |
32,534 |
|
- Includes cumulative translation losses at June 30, 2023:
$95 million (December 31, 2022: $93 million;
June 30, 2022: $93 million).
- Includes additional paid-in capital as at June 30, 2023:
$1,875 million (December 31, 2022: $1,875 million;
June 30, 2022: $1,874 million).
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2023
available on our website, are an integral part of these
consolidated financial statements.
Technical Information
The scientific and technical information
contained in this press release has been reviewed and approved by
Craig Fiddes, SME-RM, Lead, Resource Modeling, Nevada Gold Mines;
Chad Yuhasz, P.Geo, Mineral Resource Manager, Latin America &
Asia Pacific; Richard Peattie, MPhil, FAusIMM, Mineral Resources
Manager: Africa and Middle East; Simon Bottoms, CGeol, MGeol, FGS,
FAusIMM, Mineral Resource Management and Evaluation Executive; John
Steele, CIM, Metallurgy, Engineering and Capital Projects
Executive; and Joel Holliday, FAusIMM, Executive Vice-President,
Exploration — each a “Qualified Person” as defined in National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
All mineral reserve and mineral resource
estimates are estimated in accordance with National Instrument
43-101 - Standards of Disclosure for Mineral Projects. Unless
otherwise noted, such mineral reserve and mineral resource
estimates are as of December 31, 2022.
Endnotes
Endnote 1On an attributable basis.
Endnote 2“Adjusted net
earnings” and “adjusted net earnings per share” are non-GAAP
financial performance measures. Adjusted net earnings excludes the
following from net earnings: impairment charges (reversals) related
to intangibles, goodwill, property, plant and equipment, and
investments; acquisition/disposition gains/losses; foreign currency
translation gains/losses; significant tax adjustments; other items
that are not indicative of the underlying operating performance of
our core mining business; and tax effect and non-controlling
interest of the above items. Management uses this measure
internally to evaluate our underlying operating performance for the
reporting periods presented and to assist with the planning and
forecasting of future operating results. Management believes that
adjusted net earnings is a useful measure of our performance
because impairment charges, acquisition/disposition gains/losses
and significant tax adjustments do not reflect the underlying
operating performance of our core mining business and are not
necessarily indicative of future operating results. Adjusted net
earnings and adjusted net earnings per share are intended to
provide additional information only and does not have any
standardized definition under IFRS and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. The measures are not necessarily
indicative of operating profit or cash flow from operations as
determined under IFRS. Other companies may calculate these measures
differently. The following table reconciles these non-GAAP
financial measures to the most directly comparable IFRS measure.
Further details on these non-GAAP financial performance measures
are provided in the MD&A accompanying Barrick’s financial
statements filed from time to time on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov.
Reconciliation of Net Earnings to Net
Earnings per Share, Adjusted Net Earnings and Adjusted Net Earnings
per Share
($
millions, except per share amounts in dollars) |
For the three months ended |
|
For the six months ended |
|
|
6/30/23 |
|
3/31/23 |
|
6/30/22 |
|
6/30/23 |
|
6/30/22 |
|
Net
earnings attributable to equity holders of the Company |
305 |
|
120 |
|
488 |
|
425 |
|
926 |
|
Impairment charges (reversals)
related to intangibles, goodwill, property, plant and equipment,
and investmentsa |
22 |
|
1 |
|
3 |
|
23 |
|
5 |
|
Acquisition/disposition
gainsb |
(3 |
) |
(3 |
) |
(20 |
) |
(6 |
) |
(22 |
) |
(Gain) loss on currency
translation |
(12 |
) |
38 |
|
6 |
|
26 |
|
9 |
|
Significant tax adjustmentsc |
33 |
|
48 |
|
38 |
|
81 |
|
55 |
|
Other (income) expense
adjustmentsd |
(3 |
) |
63 |
|
(95 |
) |
60 |
|
(82 |
) |
Non-controlling intereste |
(7 |
) |
(6 |
) |
(7 |
) |
(13 |
) |
(7 |
) |
Tax
effecte |
1 |
|
(14 |
) |
6 |
|
(13 |
) |
(2 |
) |
Adjusted net earnings |
336 |
|
247 |
|
419 |
|
583 |
|
882 |
|
Net earnings per sharef |
0.17 |
|
0.07 |
|
0.27 |
|
0.24 |
|
0.52 |
|
Adjusted net earnings per sharef |
0.19 |
|
0.14 |
|
0.24 |
|
0.33 |
|
0.50 |
|
- For the three and six month periods
ended June 30, 2023, net impairment charges were mainly related to
miscellaneous assets.
- For the three and six month periods
ended June 30, 2022, acquisition/disposition gains were primarily
related to miscellaneous permit and land assets.
- For the three and six month periods
ended June 30, 2023, significant tax adjustments were mainly
related to the settlement agreement to resolve the tax dispute at
Porgera, adjustments in respect of prior years and the
re-measurement of deferred tax balances.
- For the three month period ended
March 31, 2023 and the six month period ended June 30, 2023, other
(income) expense adjustments mainly relate to the $30 million
commitment we made towards the expansion of education
infrastructure in Tanzania, per our community investment
obligations under the Twiga partnership. Other (income) expense
adjustments for all periods were also impacted by changes in the
discount rate assumptions on our closed mine rehabilitation
provision and care and maintenance expenses at Porgera.
- Non-controlling interest and tax
effect for the three and six month periods ended June 30, 2023
primarily relates to loss on currency translation.
- Calculated using weighted average
number of shares outstanding under the basic method of earnings per
share.
Endnote 3Total reportable
incident frequency rate (“TRIFR”) is a ratio calculated as follows:
number of reportable injuries x 1,000,000 hours divided by the
total number of hours worked. Reportable injuries include
fatalities, lost time injuries, restricted duty injuries, and
medically treated injuries.
Endnote 4“Realized price” is a
non-GAAP financial performance measure which excludes from sales:
treatment and refining charges; and cumulative catch-up adjustment
to revenue relating to our streaming arrangements. We believe this
provides investors and analysts with a more accurate measure with
which to compare to market gold prices and to assess our gold sales
performance. For those reasons, management believes that this
measure provides a more accurate reflection of our company’s past
performance and is a better indicator of its expected performance
in future periods. The realized price measure is intended to
provide additional information, and does not have any standardized
definition under IFRS and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. The measure is not necessarily indicative of sales as
determined under IFRS. Other companies may calculate this measure
differently. The following table reconciles realized prices to the
most directly comparable IFRS measure. Further details on these
non-GAAP financial performance measures are provided in the
MD&A accompanying Barrick’s financial statements filed from
time to time on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
Reconciliation of Sales to Realized
Price per ounce/pound
($
millions, except per ounce/pound information in dollars) |
Gold |
Copper |
Gold |
Copper |
For the three months ended |
For the six months ended |
|
6/30/23 |
|
3/31/23 |
|
6/30/22 |
|
6/30/23 |
3/31/23 |
6/30/22 |
6/30/23 |
|
6/30/22 |
|
6/30/23 |
6/30/22 |
Sales |
2,584 |
|
2,411 |
|
2,597 |
|
189 |
171 |
211 |
4,995 |
|
5,108 |
|
360 |
498 |
Sales applicable to
non-controlling interests |
(787 |
) |
(723 |
) |
(779 |
) |
0 |
0 |
0 |
(1,510 |
) |
(1,566 |
) |
0 |
0 |
Sales applicable to equity
method investmentsa,b |
171 |
|
126 |
|
145 |
|
133 |
160 |
164 |
297 |
|
281 |
|
293 |
352 |
Sales applicable to sites in
closure or care and maintenancec |
(2 |
) |
(7 |
) |
(30 |
) |
0 |
0 |
0 |
(9 |
) |
(30 |
) |
0 |
0 |
Treatment and refinement
charges |
8 |
|
7 |
|
2 |
|
50 |
43 |
47 |
15 |
|
5 |
|
93 |
98 |
Revenues – as adjusted |
1,974 |
|
1,814 |
|
1,935 |
|
372 |
374 |
422 |
3,788 |
|
3,798 |
|
746 |
948 |
Ounces/pounds sold (000s ounces/millions pounds)c |
1,001 |
|
954 |
|
1,040 |
|
101 |
89 |
113 |
1,955 |
|
2,033 |
|
190 |
226 |
Realized gold/copper price per ounce/poundd |
1,972 |
|
1,902 |
|
1,861 |
|
3.70 |
4.20 |
3.72 |
1,938 |
|
1,868 |
|
3.93 |
4.20 |
- Represents sales of $171 million
and $297 million, respectively, for the three and six month
periods ended June 30, 2023 (March 31, 2023:
$126 million and June 30, 2022: $145 million and
$282 million, respectively) applicable to our 45% equity
method investment in Kibali for gold. Represents sales of $81
million and $179 million, respectively, for the three and six
month periods ended June 30, 2023 (March 31, 2023: $98
million and June 30, 2022: $99 million and $217 million,
respectively) applicable to our 50% equity method investment in
Zaldívar and $58 million and $127 million, respectively
(March 31, 2023: $69 million and June 30, 2022: $69
million and $144 million, respectively), applicable to our 50%
equity method investment in Jabal Sayid for copper.
- Sales applicable to equity method
investments are net of treatment and refinement charges.
- Excludes Pierina, which is
producing incidental ounces while in closure.
- Realized price per ounce/pound may
not calculate based on amounts presented in this table due to
rounding.
Endnote 5“Free cash flow” is a
non-GAAP financial measure that deducts capital expenditures from
net cash provided by operating activities. Management believes this
to be a useful indicator of our ability to operate without reliance
on additional borrowing or usage of existing cash. Free cash flow
is intended to provide additional information only and does not
have any standardized definition under IFRS, and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The measure is not
necessarily indicative of operating profit or cash flow from
operations as determined under IFRS. Other companies may calculate
this measure differently. Further details on this non-GAAP
financial performance measure are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. The
following table reconciles this non-GAAP financial measure to the
most directly comparable IFRS measure.
Reconciliation of Net Cash Provided by
Operating Activities to Free Cash Flow
($
millions) |
For the three months ended |
|
For the six months ended |
|
|
6/30/23 |
|
3/31/23 |
|
6/30/22 |
|
6/30/23 |
|
6/30/22 |
|
Net
cash provided by operating activities |
832 |
|
776 |
|
924 |
|
1,608 |
|
1,928 |
|
Capital expenditures |
(769 |
) |
(688 |
) |
(755 |
) |
(1,457 |
) |
(1,366 |
) |
Free cash flow |
63 |
|
88 |
|
169 |
|
151 |
|
562 |
|
Endnote 6Capital expenditures
are classified into minesite sustaining capital expenditures or
project capital expenditures depending on the nature of the
expenditure. Minesite sustaining capital expenditures is the
capital spending required to support current production levels.
Project capital expenditures represent the capital spending at new
projects and major, discrete projects at existing operations
intended to increase net present value through higher production or
longer mine life. Management believes this to be a useful indicator
of the purpose of capital expenditures and this distinction is an
input into the calculation of all-in sustaining costs per ounce and
all-in costs per ounce. Classifying capital expenditures is
intended to provide additional information only and does not have
any standardized definition under IFRS, and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may
calculate these measures differently. The following table
reconciles these non-GAAP financial performance measures to the
most directly comparable IFRS measure.
Reconciliation of the Classification of
Capital Expenditures
($
millions) |
For the three months ended |
For the six months ended |
|
6/30/23 |
3/31/23 |
6/30/22 |
6/30/23 |
6/30/22 |
Minesite sustaining capital expenditures |
524 |
454 |
523 |
978 |
943 |
Project capital expenditures |
238 |
226 |
226 |
464 |
412 |
Capitalized interest |
7 |
8 |
6 |
15 |
11 |
Total consolidated capital expenditures |
769 |
688 |
755 |
1,457 |
1,366 |
Endnote 7These amounts are
presented on the same basis as our guidance.
Endnote 8Gold cost of sales per
ounce is calculated as cost of sales across our gold operations
(excluding sites in closure or care and maintenance) divided by
ounces sold (both on an attributable basis using Barrick's
ownership share). Copper cost of sales per pound is calculated as
cost of sales across our copper operations divided by pounds sold
(both on an attributable basis using Barrick's ownership share).
References to attributable basis means our 100% share of Hemlo and
Lumwana, our 61.5% share of NGM, our 60% share of Pueblo Viejo, our
80% share of Loulo-Gounkoto, our 89.7% share of Tongon, our 84%
share of North Mara, and Bulyanhulu, our 50% share of Veladero,
Zaldívar and Jabal Sayid, our 47.5% share of Porgera and our 45%
share of Kibali.
Endnote 9“Total cash costs” per
ounce, “All-in sustaining costs” per ounce and “All-in costs” per
ounce are non-GAAP financial performance measures which are
calculated based on the definition published by the World Gold
Council (a market development organization for the gold industry
comprised of and funded by gold mining companies from around the
world, including Barrick, the “WGC”). The WGC is not a regulatory
organization. Management uses these measures to monitor the
performance of our gold mining operations and its ability to
generate positive cash flow, both on an individual site basis and
an overall company basis. “Total cash costs” per ounce start with
our cost of sales related to gold production and removes
depreciation, the noncontrolling interest of cost of sales and
includes by-product credits. “All-in sustaining costs” per ounce
start with “Total cash costs” per ounce and includes sustaining
capital expenditures, sustaining leases, general and administrative
costs, minesite exploration and evaluation costs and reclamation
cost accretion and amortization. These additional costs reflect the
expenditures made to maintain current production levels. “All-in
costs” per ounce start with “All-in sustaining costs” and adds
additional costs that reflect the varying costs of producing gold
over the life-cycle of a mine, including: project capital
expenditures (capital spending at new projects and major, discrete
projects at existing operations intended to increase net present
value through higher production or longer mine life) and other
non-sustaining costs (primarily non-sustaining leases, exploration
and evaluation costs, community relations costs and general and
administrative costs that are not associated with current
operations). These definitions recognize that there are different
costs associated with the life-cycle of a mine, and that it is
therefore appropriate to distinguish between sustaining and
non-sustaining costs. Barrick believes that the use of “Total cash
costs” per ounce, “All-in sustaining costs” per ounce and "All-in
costs" per ounce will assist analysts, investors and other
stakeholders of Barrick in understanding the costs associated with
producing gold, understanding the economics of gold mining,
assessing our operating performance and also our ability to
generate free cash flow from current operations and to generate
free cash flow on an overall company basis. “Total cash costs” per
ounce, “All-in sustaining costs” per ounce and "All-in costs" per
ounce are intended to provide additional information only and do
not have standardized definitions under IFRS and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures are
not equivalent to net income or cash flow from operations as
determined under IFRS. Although the WGC has published a
standardized definition, other companies may calculate these
measures differently. Further details on these non-GAAP financial
performance measures are provided in the MD&A accompanying
Barrick’s financial statements filed from time to time on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Gold Cost of Sales to
Total cash costs, All-in sustaining costs and All-in costs,
including on a per ounce basis
($
millions, except per ounce information in dollars) |
|
For the three months ended |
|
For the six months ended |
|
|
Footnote |
6/30/23 |
|
3/31/23 |
|
6/30/22 |
|
6/30/23 |
|
6/30/22 |
|
Cost of sales applicable to gold production |
|
1,753 |
|
1,761 |
|
1,703 |
|
3,514 |
|
3,285 |
|
Depreciation |
|
(413 |
) |
(445 |
) |
(438 |
) |
(858 |
) |
(857 |
) |
Cash cost of sales applicable to equity method investments |
|
67 |
|
63 |
|
54 |
|
130 |
|
105 |
|
By-product credits |
|
(60 |
) |
(61 |
) |
(51 |
) |
(121 |
) |
(106 |
) |
Non-recurring items |
a |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Other |
b |
5 |
|
0 |
|
(22 |
) |
5 |
|
(23 |
) |
Non-controlling interests |
c |
(388 |
) |
(378 |
) |
(358 |
) |
(766 |
) |
(689 |
) |
Total cash costs |
|
964 |
|
940 |
|
888 |
|
1,904 |
|
1,715 |
|
General & administrative costs |
|
28 |
|
39 |
|
30 |
|
67 |
|
84 |
|
Minesite exploration and evaluation costs |
d |
14 |
|
11 |
|
20 |
|
25 |
|
30 |
|
Minesite sustaining capital expenditures |
e |
524 |
|
454 |
|
523 |
|
978 |
|
943 |
|
Sustaining leases |
|
9 |
|
7 |
|
6 |
|
16 |
|
15 |
|
Rehabilitation - accretion and amortization (operating sites) |
f |
15 |
|
14 |
|
13 |
|
29 |
|
24 |
|
Non-controlling interest, copper operations and other |
g |
(197 |
) |
(159 |
) |
(221 |
) |
(356 |
) |
(397 |
) |
All-in sustaining costs |
|
1,357 |
|
1,306 |
|
1,259 |
|
2,663 |
|
2,414 |
|
Global exploration and evaluation and project expense |
d |
87 |
|
60 |
|
80 |
|
147 |
|
137 |
|
Community relations costs not related to current operations |
|
1 |
|
0 |
|
0 |
|
1 |
|
0 |
|
Project capital expenditures |
e |
238 |
|
226 |
|
226 |
|
464 |
|
412 |
|
Non-sustaining leases |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Rehabilitation - accretion and amortization (non-operating
sites) |
f |
6 |
|
6 |
|
5 |
|
12 |
|
8 |
|
Non-controlling interest and copper operations and other |
g |
(122 |
) |
(88 |
) |
(68 |
) |
(210 |
) |
(126 |
) |
All-in costs |
|
1,567 |
|
1,510 |
|
1,502 |
|
3,077 |
|
2,845 |
|
Ounces sold - equity basis (000s ounces) |
h |
1,001 |
|
954 |
|
1,040 |
|
1,955 |
|
2,033 |
|
Cost of sales per ounce |
i,j |
1,323 |
|
1,378 |
|
1,216 |
|
1,350 |
|
1,203 |
|
Total cash costs per ounce |
j |
963 |
|
986 |
|
855 |
|
974 |
|
844 |
|
Total
cash costs per ounce (on a co-product basis) |
j,k |
1,003 |
|
1,030 |
|
887 |
|
1,016 |
|
878 |
|
All-in sustaining costs per ounce |
j |
1,355 |
|
1,370 |
|
1,212 |
|
1,362 |
|
1,188 |
|
All-in
sustaining costs per ounce (on a co-product basis) |
j,k |
1,395 |
|
1,414 |
|
1,244 |
|
1,404 |
|
1,222 |
|
All-in costs per ounce |
j |
1,566 |
|
1,583 |
|
1,444 |
|
1,574 |
|
1,399 |
|
All-in
costs per ounce (on a co-product basis) |
j,k |
1,606 |
|
1,627 |
|
1,476 |
|
1,616 |
|
1,433 |
|
a. |
Non-recurring items |
|
These costs are not indicative of our cost of production and have
been excluded from the calculation of total cash costs. |
b. |
Other |
|
Other adjustments for the three and six month periods ended
June 30, 2023 include the removal of total cash costs and
by-product credits associated with Pierina, Golden Sunlight, and
Buzwagi, which all are producing incidental ounces, of $nil and
$3 million, respectively (March 31, 2023: $3 million;
June 30, 2022: $7 million and $10 million, respectively). |
c. |
Non-controlling interests |
|
Non-controlling interests include non-controlling interests related
to gold production of $533 million and $1,062 million,
respectively, for the three and six month periods ended
June 30, 2023 (March 31, 2023: $529 million and
June 30, 2022: $505 million and $981 million, respectively).
Non-controlling interests include NGM, Pueblo Viejo,
Loulo-Gounkoto, Tongon, North Mara and Bulyanhulu. Refer to Note 5
to the Financial Statements for further information. |
d. |
Exploration and evaluation costs |
|
Exploration, evaluation and project expenses are presented as
minesite sustaining if it supports current mine operations and
project if it relates to future projects. Refer to page 50 of
Barrick’s Q2 2023 MD&A. |
e. |
Capital expenditures |
|
Capital expenditures are related to our gold sites only and are
split between minesite sustaining and project capital expenditures.
Project capital expenditures are capital spending at new projects
and major, discrete projects at existing operations intended to
increase net present value through higher production or longer mine
life. Significant projects in the current year are the plant
expansion project at Pueblo Viejo and the solar projects at NGM and
Loulo-Gounkoto. Refer to page 49 of Barrick’s Q2 2023
MD&A. |
f. |
Rehabilitation—accretion and amortization |
|
Includes depreciation on the assets related to rehabilitation
provisions of our gold operations and accretion on the
rehabilitation provision of our gold operations, split between
operating and non-operating sites. |
g. |
Non-controlling interest and copper
operations |
|
Removes general & administrative costs related to
non-controlling interests and copper based on a percentage
allocation of revenue. Also removes exploration, evaluation and
project expenses, rehabilitation costs and capital expenditures
incurred by our copper sites and the non-controlling interest of
NGM, Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara and
Bulyanhulu operating segments. It also includes capital
expenditures applicable to our equity method investment in Kibali.
Figures remove the impact of Pierina, Golden Sunlight, and Buzwagi.
The impact is summarized as the following: |
($
millions) |
For the three months ended |
|
For the six months ended |
|
Non-controlling interest, copper operations and other |
6/30/23 |
|
3/31/23 |
|
6/30/22 |
|
6/30/23 |
|
6/30/22 |
|
General & administrative costs |
(5 |
) |
(6 |
) |
(5 |
) |
(11 |
) |
(18 |
) |
Minesite exploration and
evaluation expenses |
(4 |
) |
(4 |
) |
(7 |
) |
(8 |
) |
(10 |
) |
Rehabilitation - accretion and
amortization (operating sites) |
(5 |
) |
(5 |
) |
(4 |
) |
(10 |
) |
(7 |
) |
Minesite sustaining capital expenditures |
(183 |
) |
(144 |
) |
(205 |
) |
(327 |
) |
(362 |
) |
All-in sustaining costs total |
(197 |
) |
(159 |
) |
(221 |
) |
(356 |
) |
(397 |
) |
Global exploration and evaluation and project expense |
(37 |
) |
(12 |
) |
(11 |
) |
(49 |
) |
(15 |
) |
Project capital expenditures |
(85 |
) |
(76 |
) |
(57 |
) |
(161 |
) |
(111 |
) |
All-in costs total |
(122 |
) |
(88 |
) |
(68 |
) |
(210 |
) |
(126 |
) |
h. |
Ounces sold - equity basis |
|
Figures remove the impact of: Pierina and Buzwagi. Some of these
assets are producing incidental ounces while in closure or care and
maintenance. |
i. |
Cost of sales per ounce |
|
Figures remove the cost of sales impact of: Pierina of $nil and $3
million, respectively, for the three and six month periods ended
June 30, 2023 (March 31, 2023: $3 million and
June 30, 2022: $8 million and $11 million, respectively);
Golden Sunlight of $nil and $nil, respectively, for the three and
six month periods ended June 30, 2023 (March 31, 2023:
$nil and June 30, 2022: $nil and $nil respectively); Buzwagi
of $nil and $nil, respectively, for the three and six month periods
ended June 30, 2023 (March 31, 2023: $nil and
June 30, 2022: $nil and $nil, respectively), which are
producing incidental ounces. Gold cost of sales per ounce is
calculated as cost of sales across our gold operations (excluding
sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using Barrick's ownership
share). |
j. |
Per ounce figures |
|
Cost of sales per ounce, total cash costs per ounce, all-in
sustaining costs per ounce and all-in costs per ounce may not
calculate based on amounts presented in this table due to
rounding. |
k. |
Co-product costs per ounce |
|
Total cash costs per ounce, all-in sustaining costs per ounce and
all-in costs per ounce presented on a co-product basis removes the
impact of by-product credits of our gold production (net of
non-controlling interest) calculated as: |
($
millions) |
For the three months ended |
|
For the six months ended |
|
|
6/30/23 |
|
3/31/23 |
|
6/30/22 |
|
6/30/23 |
|
6/30/22 |
|
By-product credits |
60 |
|
61 |
|
51 |
|
121 |
|
106 |
|
Non-controlling interest |
(20 |
) |
(19 |
) |
(18 |
) |
(39 |
) |
(37 |
) |
By-product credits (net of non-controlling interest) |
40 |
|
42 |
|
33 |
|
82 |
|
69 |
|
Endnote 10“C1 cash costs” per
pound and “All-in sustaining costs” per pound are non-GAAP
financial performance measures related to our copper mine
operations. We believe that “C1 cash costs” per pound enables
investors to better understand the performance of our copper
operations in comparison to other copper producers who present
results on a similar basis. “C1 cash costs” per pound excludes
royalties and production taxes and non-routine charges as they are
not direct production costs. “All-in sustaining costs” per pound is
similar to the gold all-in sustaining costs metric and management
uses this to better evaluate the costs of copper production. We
believe this measure enables investors to better understand the
operating performance of our copper mines as this measure reflects
all of the sustaining expenditures incurred in order to produce
copper. “All-in sustaining costs” per pound includes C1 cash costs,
sustaining capital expenditures, sustaining leases, general and
administrative costs, minesite exploration and evaluation costs,
royalties and production taxes, reclamation cost accretion and
amortization and writedowns taken on inventory to net realizable
value. Further details on these non-GAAP financial performance
measures are provided in the MD&A accompanying Barrick’s
financial statements filed from time to time on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Copper Cost of Sales
to C1 cash costs and All-in sustaining costs, including on a per
pound basis
($
millions, except per pound information in dollars) |
For the three months ended |
|
For the six months ended |
|
|
6/30/23 |
|
3/31/23 |
|
6/30/22 |
|
6/30/23 |
|
6/30/22 |
|
Cost of sales |
176 |
|
174 |
|
143 |
|
350 |
|
297 |
|
Depreciation/amortization |
(59 |
) |
(44 |
) |
(34 |
) |
(103 |
) |
(72 |
) |
Treatment and refinement charges |
50 |
|
43 |
|
47 |
|
93 |
|
98 |
|
Cash cost of sales applicable to equity method investments |
84 |
|
87 |
|
74 |
|
171 |
|
146 |
|
Less: royalties |
(16 |
) |
(15 |
) |
(32 |
) |
(31 |
) |
(64 |
) |
By-product credits |
(6 |
) |
(4 |
) |
(6 |
) |
(10 |
) |
(9 |
) |
Other |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
C1 cash costs |
229 |
|
241 |
|
192 |
|
470 |
|
396 |
|
General & administrative costs |
4 |
|
6 |
|
6 |
|
10 |
|
18 |
|
Rehabilitation - accretion and amortization |
2 |
|
2 |
|
1 |
|
4 |
|
2 |
|
Royalties |
16 |
|
15 |
|
32 |
|
31 |
|
64 |
|
Minesite exploration and evaluation costs |
2 |
|
2 |
|
5 |
|
4 |
|
8 |
|
Minesite sustaining capital expenditures |
58 |
|
33 |
|
89 |
|
91 |
|
156 |
|
Sustaining leases |
4 |
|
3 |
|
2 |
|
7 |
|
3 |
|
All-in sustaining costs |
315 |
|
302 |
|
327 |
|
617 |
|
647 |
|
Pounds sold - consolidated basis (millions pounds) |
101 |
|
89 |
|
113 |
|
190 |
|
226 |
|
Cost of sales per pounda,b |
2.84 |
|
3.22 |
|
2.11 |
|
3.02 |
|
2.16 |
|
C1 cash costs per pounda |
2.28 |
|
2.71 |
|
1.70 |
|
2.48 |
|
1.75 |
|
All-in sustaining costs per pounda |
3.13 |
|
3.40 |
|
2.87 |
|
3.26 |
|
2.86 |
|
- Cost of sales per pound, C1 cash
costs per pound and all-in sustaining costs per pound may not
calculate based on amounts presented in this table due to
rounding.
- Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share).
Endnote 11A Tier One Gold Asset
is an asset with a reserve potential to deliver a minimum 10-year
life, annual production of at least 500,000 ounces of gold and
total cash costs per ounce over the mine life that are in the lower
half of the industry cost curve. A Tier One Copper Asset is an
asset with a reserve potential of greater than five million tonnes
of contained copper and C1 cash costs per pound over the mine life
that are in the lower half of the industry cost curve.
Endnote 12Refer to the
Technical Report on the Pueblo Viejo Mine, Dominican Republic,
dated March 17, 2023 and filed on SEDAR at www.sedar.com and EDGAR
at www.sec.gov on March 17, 2023.
Endnote 13Porgera was placed on
temporary care and maintenance on April 25, 2020 and remains
excluded from our 2023 guidance. We expect to update our guidance
to include Porgera following both the execution of definitive
agreements to implement the Commencement Agreement and the
finalization of a timeline for the resumption of full mine
operations.
Endnote 14Gold Equivalent
Ounces from copper assets are calculated using a gold price of
$1,300/oz; and copper price of $3.00/lb.
Estimated in accordance with National Instrument
43-101 - Standards of Disclosure for Mineral Projects as required
by Canadian securities regulatory authorities:
Estimates as of
December 31, 2022: Proven mineral reserves of 260 million tonnes
grading 2.26g/t, representing 19 million ounces of gold, and 390
million tonnes grading 0.40%, representing 3,500 million pounds of
copper. Probable reserves of 1,200 million tonnes grading 1.53g/t,
representing 57 million ounces of gold, and 1,100 million tonnes
grading 0.37%, representing 8,800 million pounds of copper.
Estimates as of
December 31, 2021: Proven mineral reserves of 240 million tonnes
grading 2.20 g/t, representing 17 million ounces of gold, and 380
million tonnes grading 0.41%, representing 3,400 million pounds of
copper. Probable reserves of 1,000 million tonnes grading 1.60 g/t,
representing 53 million ounces of gold, and 1,100 million tonnes
grading 0.37%, representing 8,800 million pounds of copper.
Estimates as of
December 31, 2020: Proven reserves of 280 million tonnes grading
2.37 g/t, representing 21 million ounces of gold, and 350 million
tonnes grading 0.39%, representing 3,000 million pounds of copper.
Probable reserves of 990 million tonnes grading 1.46 g/t,
representing 47 million ounces of gold, and 1,100 million tonnes
grading 0.39%, representing 9,700 million pounds of copper.
Estimates as of
December 31, 2019: Proven reserves of 280 million tonnes grading
2.42 g/t, representing 22 million ounces of gold, and 420 million
tonnes grading 0.4%, representing 3,700 million pounds of copper.
Probable reserves of 1,000 million tonnes grading 1.48 g/t,
representing 49 million ounces of gold, and 1,200 million tonnes
grading 0.38%, representing 9,800 million pounds of copper.
Estimates as of December 31, 2019 reflect Barrick’s acquisition of
all of the shares of Acacia Mining plc that it did not already own
as of September 17, 2019.
Acquisitions and divestments includes the
following: a decrease of 2.2 Moz in proven and probable gold
reserves from December 31, 2019 to December 31, 2020, as a result
of the divestiture of Barrick's Massawa gold project effective
March 4, 2020; and a decrease of 0.90 Moz in proven and probable
gold reserves from December 31, 2020 to December 31, 2021, as a
result of the change in Barrick's equity interest in Porgera from
47.5% to 24.5% and the net impact of the asset exchange of Lone
Tree to i-80 Gold for the remaining 50% of South Arturo that Nevada
Gold Mines did not already own.
Endnote 15Reko Diq is a world
class copper-gold mine in the making located in Chagai district of
Balochistan province, in Pakistan. One of the largest undeveloped
copper-gold projects in the world, Reko Diq is owned 50% by
Barrick, 25% by three federal state-owned enterprises, 15% by the
Province of Balochistan on a fully funded basis and 10% by the
Province of Balochistan on a free carried basis. Barrick is now
updating the project’s 2010 feasibility and 2011 feasibility
expansion studies. This should be completed by 2024, with 2028
targeted for first production.
Reko Diq is expected to have a life of at least
40 years as a truck-and-shovel open pit operation with processing
facilities producing a high-quality copper-gold concentrate.
Construction is expected in two phases with a combined process
capacity of 80 million tonnes per annum.
Reko Diq will be a major contributor to
Pakistan’s economy which is expected to have a transformative
impact on the Balochistan province where, in addition to the
economic benefits it will generate, the mine will also create jobs,
promote the growth of a regional economy and invest in development
programs.
Endnote 16Includes
Goldrush.
Endnote 17Total cash costs and
all-in sustaining costs per ounce include costs allocated to
non-operating sites.
Endnote 18Operating division
guidance ranges reflect expectations at each individual operating
division and may not add up to the company-wide guidance range
total. Guidance ranges exclude Pierina which is producing
incidental ounces while in closure.
Endnote 19Includes corporate
administration costs.
Endnote 20EBITDA is a non-GAAP
financial performance measure, which excludes the following from
net earnings: income tax expense; finance costs; finance income;
and depreciation. Management believes that EBITDA is a valuable
indicator of our ability to generate liquidity by producing
operating cash flow to fund working capital needs, service debt
obligations, and fund capital expenditures. Management uses EBITDA
for this purpose. Adjusted EBITDA removes the effect of impairment
charges; acquisition/disposition gains/losses; foreign currency
translation gains/losses; and other expense adjustments. We also
remove the impact of the income tax expense, finance costs, finance
income and depreciation incurred in our equity method accounted
investments. We believe these items provide a greater level of
consistency with the adjusting items included in our adjusted net
earnings reconciliation, with the exception that these amounts are
adjusted to remove any impact on finance costs/income, income tax
expense and/or depreciation as they do not affect EBITDA. We
believe this additional information will assist analysts, investors
and other stakeholders of Barrick in better understanding our
ability to generate liquidity from our full business, including
equity method investments, by excluding these amounts from the
calculation as they are not indicative of the performance of our
core mining business and not necessarily reflective of the
underlying operating results for the periods presented. EBITDA and
adjusted EBITDA are intended to provide additional information only
and do not have any standardized definition under IFRS and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may
calculate EBITDA and adjusted EBITDA differently. Further details
on these non-GAAP financial performance measures are provided in
the MD&A accompanying Barrick’s financial statements filed from
time to time on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
Reconciliation of Net Earnings to EBITDA
and Adjusted EBITDA
($
millions) |
For the three months ended |
|
For the six months ended |
|
|
6/30/23 |
|
3/31/23 |
|
6/30/22 |
|
6/30/23 |
|
6/30/22 |
|
Net earnings |
502 |
|
269 |
|
717 |
|
771 |
|
1,423 |
|
Income tax expense |
264 |
|
205 |
|
279 |
|
469 |
|
580 |
|
Finance costs, neta |
23 |
|
37 |
|
73 |
|
60 |
|
149 |
|
Depreciation |
480 |
|
495 |
|
476 |
|
975 |
|
936 |
|
EBITDA |
1,269 |
|
1,006 |
|
1,545 |
|
2,275 |
|
3,088 |
|
Impairment charges (reversals)
of non-current assetsb |
22 |
|
1 |
|
3 |
|
23 |
|
5 |
|
Acquisition/disposition
gainsc |
(3 |
) |
(3 |
) |
(20 |
) |
(6 |
) |
(22 |
) |
(Gain) loss on currency
translation |
(12 |
) |
38 |
|
6 |
|
26 |
|
9 |
|
Other (income) expense
adjustmentsd |
(3 |
) |
63 |
|
(95 |
) |
60 |
|
(82 |
) |
Income
tax expense, net finance costsa, and depreciation from equity
investees |
95 |
|
78 |
|
88 |
|
173 |
|
174 |
|
Adjusted EBITDA |
1,368 |
|
1,183 |
|
1,527 |
|
2,551 |
|
3,172 |
|
- Finance costs exclude
accretion.
- For the three and six month periods
ended June 30, 2023, net impairment charges were mainly related to
miscellaneous assets.
- For the three and six month periods
ended June 30, 2022, acquisition/disposition gains were primarily
related to miscellaneous permit and land assets.
- For the three month period ended
March 31, 2023 and the six month period ended June 30, 2023, other
(income) expense adjustments mainly relate to the $30 million
commitment we made towards the expansion of education
infrastructure in Tanzania, per our community investment
obligations under the Twiga partnership. Other (income) expense
adjustments for all periods were also impacted by changes in the
discount rate assumptions on our closed mine rehabilitation
provision and care and maintenance expenses at Porgera.
Corporate Office
Barrick Gold Corporation161 Bay
Street, Suite 3700Toronto, Ontario M5J 2S1Canada
Telephone: +1 416 861-9911Email:
investor@barrick.comWebsite: www.barrick.com
Shares Listed
GOLDThe New York Stock
Exchange
ABXThe Toronto Stock
Exchange
Transfer Agents and Registrars
TSX Trust Company301 – 100
Adelaide Street West Toronto, Ontario M5H 4H1or Equiniti
Trust Company, LLC6201 – 15 AvenueBrooklyn, New York
11219
Telephone: 1-800-387-0825Fax:
1-888-249-6189Email: shareholderinquiries@tmx.comWebsite:
www.tsxtrust.com
Enquiries
President and Chief Executive OfficerMark
Bristow+1 647 205 7694+44 788 071 1386
Senior Executive Vice-President and Chief Financial
OfficerGraham Shuttleworth+1 647 262 2095+44 779
771 1338
Investor and Media RelationsKathy du Plessis+44
20 7557 7738Email: barrick@dpapr.com
Cautionary Statement on Forward-Looking
Information
Certain information contained or incorporated by
reference in this press release, including any information as to
our strategy, projects, plans or future financial or operating
performance, constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are
forward-looking statements. The words “believe”, “expect”,
“strategy”, “target”, “plan”, “focus”, “scheduled”, “commitment”
“opportunities”, “guidance”, “project”, “expand”, “continue”,
“progress”, “runway”, “on track”, “estimate”, “growth”,
“potential”, “future”, “extend”, “will”, “could”, “would”,
“should”, “may” and similar expressions identify forward-looking
statements. In particular, this press release contains
forward-looking statements including, without limitation, with
respect to: Barrick’s forward-looking production guidance,
including our ten-year production profile for gold and copper;
projected capital, operating and exploration expenditures; our
ability to convert resources into reserves and replace reserves net
of depletion from production; mine life and production rates,
including expected mineral reserve replacement in 2023 and 2024;
Barrick’s global exploration strategy and planned exploration
activities, including the expected benefits of conversion drilling
at the greater Leeville complex; our ability to identify new Tier
One assets and the potential for existing assets to attain Tier One
status, including Porgera and Lumwana; Barrick’s copper strategy;
our plans and expected completion and benefits of our growth
projects, including the Pueblo Viejo plant expansion and mine life
extension project, solar and battery storage system expansion
project at Loulo-Gounkoto and maintenance and processing
initiatives at Nevada Gold Mines; potential mineralization and
metal or mineral recoveries; expected timing for the feasibility
study and targeted first production for the Reko Diq project; the
duration of the temporary suspension of operations at Porgera, the
conditions for the reopening of the mine and the timeline to
recommence operations; our pipeline of high confidence projects at
or near existing operations; Barrick’s global exploration strategy
and planned exploration activities; Barrick’s partnership with the
Government of Tanzania under the framework agreement; Lumwana’s
ability to further extend the life of mine through the development
of a Super Pit and targeted pre-construction and first production;
Barrick’s strategy, plans, targets and goals in respect of
environmental and social governance issues, including local
community relations, economic contributions and education,
infrastructure and procurement initiatives, climate change and
biodiversity initiatives; Barrick’s talent management strategy; and
expectations regarding future price assumptions, financial
performance and other outlook or guidance.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: fluctuations in the spot
and forward price of gold, copper or certain other commodities
(such as silver, diesel fuel, natural gas and electricity); risks
associated with projects in the early stages of evaluation and for
which additional engineering and other analysis is required; risks
related to the possibility that future exploration results will not
be consistent with the Company’s expectations, that quantities or
grades of reserves will be diminished, and that resources may not
be converted to reserves; risks associated with the fact that
certain of the initiatives described in this press release are
still in the early stages and may not materialize; changes in
mineral production performance, exploitation and exploration
successes; risks that exploration data may be incomplete and
considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; the speculative nature of
mineral exploration and development; lack of certainty with respect
to foreign legal systems, corruption and other factors that are
inconsistent with the rule of law; changes in national and local
government legislation, taxation, controls or regulations and/or
changes in the administration of laws, policies and practices; the
potential impact of proposed changes to Chilean law on the status
of value added tax refunds received in Chile in connection with the
development of the Pascua-Lama project; expropriation or
nationalization of property and political or economic developments
in Canada, the United States or other countries in which Barrick
does or may carry on business in the future; risks relating to
political instability in certain of the jurisdictions in which
Barrick operates; timing of receipt of, or failure to comply with,
necessary permits and approvals, including the issuance of a Record
of Decision for the Goldrush Project and/or whether the Goldrush
Project will be permitted to advance as currently designed under
its Feasibility Study, the environmental license for the
construction and operation of the El Naranjo tailings storage
facility for Pueblo Viejo, and permitting activities required to
optimize Long Canyon’s life of mine; non-renewal of key licenses by
governmental authorities, including the new Special Mining Lease
for Porgera; failure to comply with environmental and health and
safety laws and regulations; increased costs and physical and
transition risks related to climate change, including extreme
weather events, resource shortages, emerging policies and increased
regulations relating to greenhouse gas emission levels, energy
efficiency and reporting of risks; contests over title to
properties, particularly title to undeveloped properties, or over
access to water, power and other required infrastructure; the
liability associated with risks and hazards in the mining industry,
and the ability to maintain insurance to cover such losses; damage
to the Company’s reputation due to the actual or perceived
occurrence of any number of events, including negative publicity
with respect to the Company’s handling of environmental matters or
dealings with community groups, whether true or not; risks related
to operations near communities that may regard Barrick’s operations
as being detrimental to them; litigation and legal and
administrative proceedings; operating or technical difficulties in
connection with mining or development activities, including
geotechnical challenges, tailings dam and storage facilities
failures, and disruptions in the maintenance or provision of
required infrastructure and information technology systems;
increased costs, delays, suspensions and technical challenges
associated with the construction of capital projects; risks
associated with working with partners in jointly controlled assets;
risks related to disruption of supply routes which may cause delays
in construction and mining activities, including disruptions in the
supply of key mining inputs due to the invasion of Ukraine by
Russia; risk of loss due to acts of war, terrorism, sabotage and
civil disturbances; risks associated with artisanal and illegal
mining; risks associated with Barrick’s infrastructure, information
technology systems and the implementation of Barrick’s
technological initiatives, including risks related to
cyber-attacks, cybersecurity breaches, or similar network or system
disruptions; the impact of global liquidity and credit availability
on the timing of cash flows and the values of assets and
liabilities based on projected future cash flows; the impact of
inflation, including global inflationary pressures driven by supply
chain disruptions caused by the ongoing Covid-19 pandemic, global
energy cost increases following the invasion of Ukraine by Russia
and country-specific political and economic factors in Argentina;
adverse changes in our credit ratings; fluctuations in the currency
markets; changes in U.S. dollar interest rates; risks arising from
holding derivative instruments (such as credit risk, market
liquidity risk and mark-to-market risk); risks related to the
demands placed on the Company’s management, the ability of
management to implement its business strategy and enhanced
political risk in certain jurisdictions; uncertainty whether some
or all of Barrick's targeted investments and projects will meet the
Company’s capital allocation objectives and internal hurdle rate;
whether benefits expected from recent transactions are realized;
business opportunities that may be presented to, or pursued by, the
Company; our ability to successfully integrate acquisitions or
complete divestitures; risks related to competition in the mining
industry; employee relations including loss of key employees;
availability and increased costs associated with mining inputs and
labor; risks associated with diseases, epidemics and pandemics,
including the effects and potential effects of the global Covid-19
pandemic; risks related to the failure of internal controls; and
risks related to the impairment of the Company’s goodwill and
assets. Barrick also cautions that its 2023 guidance, as well as
its ten-year production profile for gold and copper, may be
impacted by the ongoing business and social disruption caused by
the spread of Covid-19.
In addition, there are risks and hazards
associated with the business of mineral exploration, development
and mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and
gold bullion, copper cathode or gold or copper concentrate losses
(and the risk of inadequate insurance, or inability to obtain
insurance, to cover these risks).
Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us. Readers
are cautioned that forward-looking statements are not guarantees of
future performance. All of the forward-looking statements made in
this press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release. We disclaim any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
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