Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) – Barrick’s Q3
results showed improved production at lower costs and confirmed its
long term growth forecast. President and chief executive Mark
Bristow said the Q3 performance was an improvement on the previous
quarter’s and Q4 is expected to be better. Despite the projected
second half improvement, gold production is forecast to be
marginally below the low end of our annual guidance range. Copper
is comfortably on track to meet its guidance for production and
costs.
Gold production in Q3 was higher than Q2 driven by improved
performances at Cortez, Turquoise Ridge and Kibali. As previously
disclosed, the ramp up at Pueblo Viejo is slower than planned.
Barrick is engaged with original equipment suppliers to develop
permanent solutions for their equipment failures. The 2024 Pueblo
Viejo production forecast still exceeds 800,000 ounces (100%
basis).1 The company also confirmed that the Notice of Availability
for the Final Environmental Impact Statement for Goldrush was
published on October 27.
“Mining is a long game and we don’t manage Barrick by the
quarter—our projection for a 30% increase in the production of
gold-equivalent ounces by the end of this decade remains intact,”
Bristow said.2
Barrick’s other key growth projects—the
development of the Reko Diq copper and gold mine in Pakistan, and
the expansion of the Lumwana copper mine in Zambia—are making
steady progress. Construction of Reko Diq is scheduled to start in
2025 targeting first production in 2028, and Lumwana’s expansion is
scheduled on the same timetable. Reko Diq will rank among the
world’s top 10 copper producers when it reaches full production,
while the expanded Lumwana mine is forecast to produce at an annual
production rate of 240,000 tonnes of contained copper.14,15
“Growing the copper portfolio is one of our
strategic priorities, and when these two mines are in full
production, they will promote Barrick to the premier league of
copper producers alongside its peerless gold portfolio. In the
meantime, we’re using our very successful Jabal Sayid copper mine
in Saudi Arabia as a springboard for the discovery of new
opportunities within the Kingdom and around the Red Sea to Egypt,
where we believe the Arabian-Nubian Shield is poised to become a
major new mining destination,” Bristow said.
Barrick has aggressive exploration across its
global portfolio, aiming both to sustain the company’s peerless
record of reserves replacement, and to find its next million-ounce
discovery. Since the merger with Randgold Resources in 2019,
Barrick has replaced 125% of its depleted reserves (exclusive of
divestments and acquisitions on a gold equivalent basis).16
Strong drill results at Nevada Gold Mines
support its three-year resource and replacement plan and,
brownfields exploration is highlighting the potential in the Africa
and Middle East region, and the exploration portfolios of South,
Central and North America are being expanded.
Bristow described Barrick’s financial
performance for the quarter as strong, noting that operating cash
flows grew by 35% to more than $1 billion, free cash flow3 was up
significantly to $359 million, net earnings per share
increased 24% to $0.21 per share and adjusted net earnings per
share6 rose 26% to $0.24 per share. The quarterly dividend was
maintained at 10 cents per share.
“Our robust balance sheet secures Barrick’s
capacity to continue to invest in growth projects, both new and
existing. These projects are not required to maintain our existing
production profile; they’re exceptional opportunities to drive real
long-term value creation, and our team has shown that they’re more
than capable of fully delivering on them,” Bristow said.
Financial and Operating
Highlights
Financial Results |
Q3 2023 |
Q2 2023 |
Q3 2022 |
|
Realized gold price4,5 ($ per ounce) |
1,928 |
1,972 |
1,722 |
|
Net earnings ($ millions) |
368 |
305 |
241 |
|
Adjusted net earnings6 ($
millions) |
418 |
336 |
224 |
|
Net cash provided by operating
activities ($ millions) |
1,127 |
832 |
758 |
|
Free cash flow3 ($
millions) |
359 |
63 |
(34 |
) |
Net earnings per share
($) |
0.21 |
0.17 |
0.14 |
|
Adjusted net earnings per
share6 ($) |
0.24 |
0.19 |
0.13 |
|
Attributable capital expenditures7 ($ millions) |
589 |
588 |
609 |
|
Operating Results |
Q3 2023 |
Q2 2023 |
Q3 2022 |
|
Gold |
|
|
|
Production4 (000s of
ounces) |
1,039 |
1,009 |
988 |
|
Cost of sales4,8 ($ per
ounce) |
1,277 |
1,323 |
1,226 |
|
Total cash costs4,9 ($
per ounce) |
912 |
963 |
891 |
|
All-in
sustaining costs4,9($ per ounce) |
1,255 |
1,355 |
1,269 |
|
Copper |
|
|
|
Production4 (millions of
pounds) |
112 |
107 |
123 |
|
Cost of sales4,8 ($ per
pound) |
2.68 |
2.84 |
2.30 |
|
C1 cash costs4,10 ($ per
pound) |
2.05 |
2.28 |
1.86 |
|
All-in
sustaining costs4,10 ($ per pound) |
3.23 |
3.13 |
3.13 |
|
Financial Position |
As at 9/30/23 |
As at 6/30/23 |
As at 9/30/22 |
|
Debt (current and long-term) ($ millions) |
4,775 |
4,774 |
5,095 |
|
Cash and equivalents ($
millions) |
4,261 |
4,157 |
5,240 |
|
Debt,
net of cash ($ millions) |
514 |
617 |
(145 |
) |
Key Performance Indicators
Best Assets
- Q3 gold production higher and costs
lower than Q2; increased production from Cortez, Turquoise Ridge
and Kibali
- Stronger Q4 expected with 2023 gold
production marginally below the low end of guidance
- Pueblo Viejo equipment issues impact
plant expansion project commissioning and ramp-up
- Strong Q3 for copper production
positions Barrick to deliver on annual guidance
- Lumwana feasibility study on track
for completion by end 2024, paving the way for near doubling of
capacity
- Signing of Special Mining Lease and
Mining Development Contract keeps Porgera on track for year end
restart11
- Veladero Phase 7B leach pad
expansion scheduled for completion in 2024
- Reko Diq feasibility study update on
track for completion by end of 2024
- Strong brownfields drilling results
at AME & LATAM Asia Pacific Tier One12 mines support
expected replacement of 2023 reserve depletion
- Mineral resource definition at
NGM support future three year reserve/resource replacement
strategy
- Expanded exploration portfolio
across South, Central and North America
Leader in Sustainability
- Scope 3 emissions reduction and
engagement targets set
- Barrick complies with GISTM
requirements for Extreme and Very High Consequence facilities in
line with guidance
- Barrick continues to exceed its
water re-use and recycling targets
- Malaria Incidence Rate13 26% below
the comparable period from 2022
- Barrick pioneers mining industry in
Pakistan hosting first-ever Minerals Summit
- Barrick establishes schools, clinics
and water plants in Balochistan
- Winnemucca Child Care and Early
Learning Centre opened
Delivering Value
- 35% quarter on quarter increase in
operating cash flow to over $1.1 billion
- Free cash flow3 increased by $296
million over Q2 to $359 million
- Debt, net of cash decreased to
$514 million; net leverage near zero
- 24% increase in net earnings per
share and 26% increase in adjusted net earnings per share6 to $0.24
for the quarter
- $0.10 per share dividend declared
Q3 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 Q3 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 Q3 Dividend
Barrick today announced the declaration of a dividend of
$0.10 per share for the third quarter of 2023. The dividend is
consistent with the company’s Performance Dividend Policy announced
at the start of 2022.
The Q3 2023 dividend will be paid on December 15, 2023 to
shareholders of record at the close of business on November 30,
2023.
“The continuing strength of our business and our balance sheet
allows us to maintain the distribution of a robust dividend to our
shareholders, whilst still ensuring adequate liquidity to invest in
our significant growth projects,” said senior executive
vice-president and chief financial officer Graham Shuttleworth.
Barrick Sets Scope 3 Emissions Targets In Line With
Sustainability Strategy
Barrick has set Scope 3 emissions reduction targets to
advance its responsible energy transitioning program in line with
its integrated and holistic approach to sustainability
management.
Scope 3 emissions are those generated outside the company’s
operational control, associated with upstream and downstream
activities. Barrick has already established a Scope 1 and 2
reduction target of 30% by 2030 against a 2018 baseline for its own
operations while maintaining a steady production profile, with the
ultimate vision of achieving net zero by 2050.
Group sustainability executive Grant Beringer says effective
Scope 3 action requires the combined efforts of producers,
suppliers and customers and must be backed by short-, medium- and
long-term implementation plans.
“As with Scope 1 and 2, we’ve set a clear Scope 3 roadmap, with
targets that are achievable, measurable and based on science rather
than wishful thinking. After extensive supplier engagement and data
collection, we’ve developed category-level targets for emissions
hotspots that have the greatest potential for action. These targets
are both quantitative and qualitative. Qualitative targets, and the
engagement that goes with them, are fundamental to progressing
collective action and the evolution of data quality. As we improve
our data quality, we will review and refine our targets and the
actions being taken to achieve them. In line with our partnership
model, we are also helping suppliers to build the necessary
management capacity,” he says.
Barrick president and chief executive Mark Bristow says the
company’s climate strategy was a key component of its
sustainability strategy, which is linked to the objectives of the
United Nations Sustainable Development Goals (SDGs).
“Mining is integral to the achievement of the SDGs and Barrick
has long shown the way by making sustainability foundational to all
our activities. This has included the early creation of detailed
and demonstrable emissions reduction roadmaps, with allocated
capital, designed to deliver tangible progress towards our
targets,” he says. These targets are both quantitative and
qualitative and are focused on high emission areas in our value
chain as outlined below:
Goods and Suppliers (Category 1):17
- Quantitative Target: 30% emissions
reduction of “Tier 1” suppliers (those suppliers that collectively
account for 5% of Barrick’s total spend in this category) by 2030
against a 2022 Scope 3 base year;
- Qualitative Target: Incorporate 130
of our largest suppliers by spend into our annual outreach (this
includes our Tier 1 suppliers as well as chemical and metal
fabricator suppliers) and engagement;
- 2025 Target: Collect high-quality data for 50% of Tier 1 and
chemical and metal fabricator suppliers through engagement, and
refine emissions reduction targets by 2025.
Fuels and Energy (Category 3):17
- Quantitative Target: 20% reduction
against a 2022 Scope 3 base year by 2030;
- Qualitative Targets:
- Collaborate towards new technologies
to reduce fleet emissions; and
- Engage with host governments where we consume power from
national grids for continued renewable energy incorporation.
Downstream Copper Processing (Category 10):17
- Qualitative Target: Outreach and
engagement of all downstream customers and smelters;
- 2025 Target: Set emissions reduction target, covering 75% of
copper processing, by 2025.
Turquoise Ridge Turnaround Delivers 14% Production
Increase
Turquoise Ridge, one of Nevada Gold Mines’ Tier
One12 mines, has increased
production by 14% year on year against the same period in 2022,
despite a planned shutdown, on the back of improved throughput and
recovery at the Sage autoclave and a better underground
performance. The mine is now well on track to achieve its annual
guidance.
Nevada Gold Mines (NGM) managing director Peter Richardson says
a new and rejuvenated leadership team had implemented a move from
reactive to planned maintenance, achieving a substantial
improvement in maintenance compliance. The stabilization of the
carbon-in-leach circuit has delivered a 6% improvement in the
recovery rate year on year.
“The now fully operational third shaft has increased the mine’s
hoisting capacity, shortened hauling distances and provided
additional ventilation. These improvements will increase production
and significantly reduce mining unit costs.”
Richardson says the lessons learned from the Turquoise Ridge
performance achievements will be applied across the Nevada mines. A
similar maintenance intervention is already under way at Carlin’s
process facilities, with the first focus on the Goldstrike
autoclave.
Reko Diq Development Continues to Prepare for Early Work
Start
The feasibility study update for the Reko Diq project,
which hosts the giant copper-gold deposit in Pakistan’s Balochistan
province, continues to make good progress towards its scheduled
completion by the end of next year.
During the past quarter there was a strong focus on delineating
water supply for the mine from surrounding aquifers. A seismic
survey of aquifers in the surrounding area has indicated
significant potential for aquifer water to meet the immediate water
supply needs of the mine. Drilling has commenced to confirm the
potential of these aquifers to meet the long-term water supply
needs of the mine. Reko Diq also is working with Fleet Space
Technologies, whose passive seismic geodes are purpose-built to
perform in extreme conditions, to map the basin geometry of the
groundwater systems.
An investigation of the region’s existing rail network has shown
there are no capacity problems on the rail lines planned to be used
by the mine during operation. The rail option is an efficient,
environmentally friendly, and cost-effective way to transport
copper concentrate from the mine to the port in Qasim and
consumables and equipment back to the mine. Port Gwadar, in
Balochistan, is being studied in parallel with Qasim and is
expected to be used in the future once required infrastructure is
developed by the Government of Pakistan to connect this port and
the Government completes necessary port improvements.
Last quarter Barrick launched its International Graduate Program
in Pakistan, designed to cultivate a cadre of future experts and
leaders for the country’s fledgling mining industry. Nine young
graduates—four of them women—have been selected through a
merit-driven process in Balochistan. Their disciplines are
electrical engineering, civil engineering, renewable energy and
geology. Barrick is also working with other partners to develop
vocational and technical training centres to ensure that as the
project ramps up, people from the surrounding area will be equipped
to participate. Reko Diq’s workforce, which will number more than
4,500 when the mine is fully operational, will be assembled, with
priority given to Balochistan locals and Pakistan nationals.
Currently the project workforce comprises 120 people with 70% from
Balochistan.
In line with its commitment to sharing Reko Diq’s benefits with
the people of Balochistan from an early stage, Barrick has already
commissioned three primary schools and supplied them with qualified
teachers and educational material. The schools have introduced
young people, about half of them girls, to formal education.
Similarly, it has partnered with the Indus Hospital and Healthcare
Network (IHHN) to establish a community health centre in Reko Diq’s
nearest neighbouring village. IHHN has donated a state-of-the-art
mobile clinic, operationally funded by Reko Diq, to serve the
community while the Reko Diq funded Indus hospital is being set
up.
In the meantime, Barrick is progressing project financing
discussions with potential lenders, with positive responses. The
financing process is expected to be formally launched before the
end of the year and will run in tandem with the updated feasibility
study, which will form the basis of the funding.
Special Mining Lease Signals Porgera
Restart
Governor General Sir Bob Dabae has granted a special
mining lease to New Porgera Limited (NPL), clearing the way for
Barrick to restart production at the gold mine, which has been on
care and maintenance for three
years.11
This follows the signing of a mining development contract and
the conclusion of a fiscal stability agreement for New Porgera
between the government and NPL. NPL has commenced engagement with
the mine property’s landowners to settle compensation
agreements.
Barrick president and chief executive Mark Bristow said subject
to agreement on compensation, the mine was positioned to restart
before the end of this year. Recruitment was being accelerated to
employ the full workforce that will be required when the mine
starts ramping up operations as soon as the compensation agreements
are in place.
“It’s been a long road, but the end is now in sight.
Negotiations between Barrick, the government and the other
stakeholders required patience and persistence but the spirit of
partnership in which they were conducted eventually led to an
outcome acceptable to all. Barrick’s commitment to partnership with
its host countries is also reflected in NPL’s ownership structure,
which ensures the equitable sharing of the value created by Porgera
with all stakeholders,” he said.
As Loulo-Gounkoto Sustains a Strong Performance, Barrick
Hunts for New Discoveries in the Region
The Loulo-Gounkoto complex is set to maintain its status
as one of the world’s top 10 gold producers as it stays on track to
meet this year’s guidance and continues to grow reserves above
annual mining depletion, says Barrick president and chief executive
Mark Bristow.
Briefing local stakeholders including journalists recently, he
noted that in the 26 years Barrick had been in the country, it had
worked tirelessly with successive governments and local partners to
grow Mali’s mining industry and to promote it as a global
investment destination, in the face of many social and political
challenges.
Over this time, Barrick has contributed almost $10 billion to
the Malian economy in the form of taxes, royalties, salaries and
payments to local suppliers. Some 70% of the economic benefit
currently generated by the complex goes to its Malian stakeholders.
Loulo-Gounkoto has contributed between 5% and 10% to the Malian GDP
over the past 10 years.
Barrick has also developed a previously non-existent mining
skills base in the region and Loulo-Gounkoto’s entire management
team are citizens of Mali. “Mali was the birthplace of Barrick’s
philosophy of genuine partnerships with its host governments. Close
relationships can over time be stressed by misconceptions but in
the past we have always been able to find solutions through open
and transparent dialogue. Mutually acceptable solutions can be
achieved if there is a genuine commitment to seek outcomes that
deliver real and long-term value for Mali and its people,” he
said.
Meanwhile, exploration teams continue to find new growth
opportunities in the very prospective Loulo-Gounkoto region.
Updated geological models have already identified new high-priority
targets with the potential of delivering the next generation of
major discoveries.
“We remain committed to Mali and, as we invest in future growth
here, we look forward to maintaining a mutually beneficial
partnership with the authorities and our in-country stakeholders,”
Bristow said.
Kibali Drives Sustainable Value Creation Through
Partnerships
The planned third-quarter ramp-up at Kibali, Africa’s
largest gold mine, has positioned it strongly to achieve its
production guidance for the year, maintaining Barrick’s track
record of delivery in the Democratic Republic of
Congo.
Speaking to journalists and local stakeholders in Kinshasa,
president and chief executive Mark Bristow said Kibali was also
well on its way to again replace the ounces mined during the year,
with positive results from both KCD underground and Mengu Hill
cut-back and good progress with the development of the KCD 11000
lode decline expected to yield further resource to reserve
conversions.
Kibali derives most of its energy needs from its three
hydropower stations with plans for a 16MW solar farm with a battery
energy storage system to augment the hydropower supply during the
dry season well under way. Following completion of this project,
the mine will run entirely on renewable energy for six months of
the year reducing its greenhouse gas emissions by 19.7kt CO2e
annually.
Part of the World Gold Council’s new documentary, GOLD:
A Journey with Idris Elba, released on YouTube, was filmed
at Kibali. Bristow said the mine was driving sustainable value
creation through local partnerships, spending over $180 million
with Congolese suppliers in the year to date and continuing to
invest in community development programs.
“As Barrick has shown, responsible mining has the unique ability
to make a transformative impact on the economies of developing and
underdeveloped countries. It is a force for good for all its
stakeholders, especially host countries and communities, and that
force is amplified when there is a genuine partnership between
miners and governments,” he said.
These include Cahier des Charge, part of our social development
program aligned with the Mining Code, which has launched eleven
projects this year with seven nearing completion. Barrick’s
investment in this program will total $8.9 million over five years.
Additionally, the mine’s community development fund, which
contributes 0.3% of revenue to projects, now has 44 projects under
its wing.
Kibali also continues to lead the way in biodiversity, with an
assessment under way for the transfer of a further 30 white rhinos
to the Garamba National Park, where 16 were re-introduced earlier
this year by a Barrick-led initiative.
Twiga Partnership Shows the Transformative Impact of
Mining
Barrick and the Tanzanian government are demonstrating
how mining can be an enormous force for good when miners and their
host governments work together to create sustainable value for all
stakeholders, says president and chief executive Mark
Bristow.
Speaking to media and other local stakeholders at Loulo Gold
mine recently, Bristow said Barrick’s pioneering Twiga partnership
with the government, which equally shares the economic benefits
generated by the North Mara and Bulyanhulu mines, should be a model
for successful cooperation, notably in developing countries. Not
only is Barrick now the largest contributor to the Tanzanian
economy through taxes, salaries, dividends, payments to local
suppliers, and investment in community projects, but it is also
proving the country’s investability to other international mining
companies.
Since taking over the two moribund mines in 2019, Barrick has
transformed them into a world-class gold mining complex making a
substantial contribution to the company’s bottom line. In that
time, it has contributed more than $3 billion to the Tanzanian
economy, with Twiga this year recognized as the largest dividend
payer of all the companies in which the government has an interest.
The mines spent 84% of their procurement budgets with local
companies, and Tanzanian citizens account for 96% of their
workforce.
In the same spirit of partnership, work has begun on the $30
million investment by Barrick in improving the country’s education
facilities, and we are finalizing the details for a further $40
million roadbuilding program.
Both mines are well on track to achieve their production
guidance for 2023 as well as to replace reserves depleted by
mining. In the meantime, exploration across Barrick’s licence areas
has highlighted new development opportunities across these areas,
including a potential new underground mine at North Mara.
“Our Twiga partnership is not only adding value to the Tanzanian
economy but to the quality of the lives of the communities around
its mines as they continue to grow. Our continued engagement with
these communities and their village leaders, local NGOs and human
rights organizations demonstrates Barrick’s partnership philosophy
and our commitment to upholding human rights standards in the
regions in which we operate,” Bristow said.
Barrick Strengthens Zambia Partnership, Invests in Major
Expansion of Lumwana Mine
Barrick’s transformation of its Lumwana mine into a
world-class producer will provide strong impetus for the
government’s thrust to revive the country’s copper industry,
president and chief executive Mark Bristow said in Lusaka after a
recent meeting with Zambian President Hakainde
Hichilema.
Barrick is investing almost $2 billion in an expansion project
designed to increase Lumwana’s annual production to an estimated
240,000 tonnes of copper from a 50 million tonne per annum process
plant over a 36-year life of mine, elevating this once-unprofitable
operation into the front rank of copper producers. The project’s
accelerated work program is targeting completion of the full
feasibility study by the end of 2024, bringing expected expanded
process plant production forward to 2028.
Since the merger of Barrick and Randgold in 2019, Lumwana has
contributed almost $3 billion to the Zambian economy in the form of
taxes, royalties, salaries and the procurement of goods and
services. In addition to its local procurement policy, the company
is also committed to local employment, and 99.3% of Lumwana’s
current workforce are Zambian nationals.
“Barrick believes that its host countries are its key
stakeholders and that partnering with them creates sustainable
value for both of us. In Zambia as elsewhere in our global network,
we seek to share the economic benefits generated by our mines with
the countries’ governments and people, notably our neighbouring
communities,” Bristow said.
Last year Barrick launched a Business Accelerator Program aimed
at building business capacity for the Zambian contractors in
Lumwana’s supply chain and to support them in effecting their own
growth plans. It is also partnering with the country’s Ministry of
Small and Medium Enterprises to support the development of these
businesses.
Looking at Lumwana’s current performance, Bristow said it was on
track to deliver its production guidance for 2023 and was ramping
up mining with both the reopening of the Malundwe pit as well as
delivery of the new owner mining pre-stripping fleet.
President Hakainde Hichilema said he was elated by the news of
the planned expansion. “This is a show of confidence in our New
Dawn government by one of the world’s leading mining companies. Our
laser focus is on establishing Zambia as a global mining
destination. We have also set ourselves the target of producing 3
million tonnes of copper by 2030. Barrick is a key strategic
partner on this journey.”
Barrick’s Embedded Growth Projects to Drive Value With
30% Rise in Production
With the potential embedded in its growth project
portfolio, Barrick plans to double its copper production by the end
of the decade and continue to increase it to an estimated 1 billion
pounds or 450,000 tonnes of copper per annum by 2031, says
president and chief executive Mark
Bristow.2
Speaking to investors on an update call, Bristow said this
substantial growth in copper production combined with the output
from Barrick’s sector-leading gold portfolio was expected to
increase the group’s attributable production by some 30% to 6.8
million gold-equivalent ounces by 2031.2,18
“The value of these projects, and in particular of our
substantial and growing copper business, is currently
underestimated by the market. If it was properly appreciated,
Barrick would be commanding a premium to our peers,” he said.
Mineral resource management and evaluation executive Simon
Bottoms said “Reko Diq in Pakistan is positioned to rank as one the
world’s top 10 copper mines when it reaches full production, and
the pre-feasibility study on the Lumwana Super Pit Expansion is
projected to deliver a potential of 240,000 tonnes of copper
production per annum from a 50 million tonne process plant
expansion over a 36-year life of mine.14,15 As a result of the
progress the accelerated Lumwana work program is now targeting to
complete a full feasibility study by the end of 2024, which brings
forward our expected production from the Super Pit to 2028. The
Reko Diq project also remains on track to deliver an updated
feasibility study by the end of 2024. Together, the Reko Diq and
Lumwana Super Pit feasibility studies will underpin potential 2024
reserve updates as an indicator of the transition to
construction”.
“Within our gold growth portfolio, the wholly-owned Fourmile
project is a best-in-class development project located in the
world’s most prolific gold district adjacent to existing
infrastructure, with ongoing drilling demonstrating significant
potential to increase in grade and size. Accordingly, we are
assessing options for independent exploration decline access in
support of a pre-feasibility study, which would later be
re-utilised for development and production complementing the
current Goldrush development. The results of our preliminary
economic assessment indicate that this could support a potential
production profile of 300,000-400,000 ounces per annum, over and
above the existing Cortez profile of 0.95-1.1 million ounces per
year (100% basis) over 10 years,” says Bottoms.2,19
Bristow said Nevada Gold Mines, the world’s largest gold mining
complex, was expected to grow its annual production to 3.7 million
ounces (100% basis) towards the end of the decade driven by our
three Tier One assets and near-mine exploration pointed to the
extension of that horizon to 15 years and beyond.2,12
In the Carlin District, the current 10-year production profile
is expected to be between 1.4-1.6 million ounces per year (100%
basis), and we have identified an exciting potential high-grade
opportunity at Horsham, on the northeast side of the known
high-grade controlling structures in the Leeville Complex, that we
will advance over the next few years, and is expected to extend
this profile well past the 10-year window.2
Similarly at Turquoise Ridge, we expect to build on the already
significant reserves and resources base with multi-million ounce
potential growth opportunities at Cricket Corridor to the east, BBT
Corridor to the south, and Getchell Fault zone to the west. This
will potentially further add to the existing 10-year production
profile of 550,000-750,000 ounces per year (100% basis).2
In Latin America, the Pueblo Viejo expansion project is
transforming a Tier One mine headed for closure into a long-life,
low-cost producer.20 While in Papua New Guinea, we are working
towards the restart of Porgera by the end of this year, and
restarted drilling will target the resource definition of the
Wangima Pit, with similar geology to the existing underground and
open pit, which has the potential to underpin an approximately 20
year mine life.21
“The Africa and Middle East region, our most
consistent production and reserve replacement performer, now also
presents us with the exciting growth opportunities as we leverage
our partnership model in Tanzania and Saudi Arabia,” Bristow
said.
2023 Operating and Capital Expenditure
Guidance
GOLD PRODUCTION AND COSTS |
|
2023 forecastattributable production(000s oz) |
2023 forecast costof sales8 ($/oz) |
2023 forecast totalcash costs9 ($/oz) |
2023 forecast all-insustaining costs9 ($/oz) |
Carlin (61.5%) |
910 - 1,000 |
1,030 - 1,110 |
820 - 880 |
1,250 - 1,330 |
Cortez (61.5%)22 |
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%)11 |
— |
— |
— |
— |
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
Barrick23,24,25 |
4,200 - 4,600 |
1,170 - 1,250 |
820 - 880 |
1,170 - 1,250 |
|
|
|
|
|
COPPER PRODUCTION AND COSTS |
|
2023 forecastattributable production(Mlbs) |
2023 forecast costof sales8 ($/lb) |
2023 forecast C1cash costs10 ($/lb) |
2023 forecast all-insustaining costs10 ($/lb) |
Lumwana |
260 - 290 |
2.45 - 2.75 |
2.00 - 2.20 |
3.20 - 3.50 |
Zaldívar (50%) |
100 - 110 |
3.40 - 3.70 |
2.60 - 2.80 |
2.90 - 3.20 |
Jabal Sayid (50%) |
65 - 75 |
1.80 - 2.10 |
1.50 - 1.70 |
1.60 - 1.90 |
Total Attributable to
Barrick25 |
420 - 470 |
2.60 - 2.90 |
2.05 - 2.25 |
2.95 - 3.25 |
|
|
|
|
|
ATTRIBUTABLE CAPITAL EXPENDITURES |
|
|
|
|
($ millions) |
|
|
|
Attributable minesite sustaining7 |
1,450 - 1,700 |
|
|
|
Attributable project7 |
750 - 900 |
|
|
|
Total attributable capital
expenditures7 |
2,200 - 2,600 |
|
|
|
2023 OUTLOOK ASSUMPTIONS AND ECONOMIC
SENSITIVITY ANALYSIS
|
2023 GuidanceAssumption |
Hypothetical Change |
Impact on EBITDA26 (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 |
‘+/- $0.01/lb |
Refer to page 13 of Barrick’s Q3 2023 MD&A for the latest
full year 2023 outlook.
Production and Cost Summary - Gold
|
For the three months ended |
|
9/30/23 |
6/30/23 |
% Change |
9/30/22 |
% Change |
Nevada Gold Mines LLC
(61.5%)a |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
478 |
458 |
4 |
% |
425 |
12 |
% |
Gold produced (000s oz 100% basis) |
777 |
744 |
4 |
% |
691 |
12 |
% |
Cost of sales ($/oz) |
1,273 |
1,357 |
(6 |
)% |
1,242 |
2 |
% |
Total cash costs ($/oz)b |
921 |
1,009 |
(9 |
)% |
924 |
0 |
% |
All-in sustaining costs ($/oz)b |
1,286 |
1,388 |
(7 |
)% |
1,333 |
(4 |
)% |
Carlin (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
230 |
248 |
(7 |
)% |
229 |
0 |
% |
Gold produced (000s oz 100% basis) |
374 |
403 |
(7 |
)% |
372 |
0 |
% |
Cost of sales ($/oz) |
1,166 |
1,240 |
(6 |
)% |
1,137 |
3 |
% |
Total cash costs ($/oz)b |
953 |
1,013 |
(6 |
)% |
943 |
1 |
% |
All-in sustaining costs ($/oz)b |
1,409 |
1,407 |
0 |
% |
1,304 |
8 |
% |
Cortez (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
137 |
110 |
25 |
% |
98 |
40 |
% |
Gold produced (000s oz 100% basis) |
224 |
178 |
25 |
% |
160 |
40 |
% |
Cost of sales ($/oz) |
1,246 |
1,346 |
(7 |
)% |
1,056 |
18 |
% |
Total cash costs ($/oz)b |
840 |
972 |
(14 |
)% |
770 |
9 |
% |
All-in sustaining costs ($/oz)b |
1,156 |
1,453 |
(20 |
)% |
1,426 |
(19 |
)% |
Turquoise Ridge (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
83 |
68 |
22 |
% |
62 |
34 |
% |
Gold produced (000s oz 100% basis) |
134 |
112 |
22 |
% |
102 |
34 |
% |
Cost of sales ($/oz) |
1,300 |
1,466 |
(11 |
)% |
1,509 |
(14 |
)% |
Total cash costs ($/oz)b |
938 |
1,088 |
(14 |
)% |
1,105 |
(15 |
)% |
All-in sustaining costs ($/oz)b |
1,106 |
1,302 |
(15 |
)% |
1,423 |
(22 |
)% |
Phoenix (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
26 |
29 |
(10 |
)% |
30 |
(13 |
)% |
Gold produced (000s oz 100% basis) |
42 |
46 |
(10 |
)% |
47 |
(13 |
)% |
Cost of sales ($/oz) |
2,235 |
2,075 |
8 |
% |
1,964 |
14 |
% |
Total cash costs ($/oz)b |
1,003 |
948 |
6 |
% |
953 |
5 |
% |
All-in sustaining costs ($/oz)b |
1,264 |
1,132 |
12 |
% |
1,084 |
17 |
% |
Long Canyon (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
2 |
3 |
(33 |
)% |
6 |
(67 |
)% |
Gold produced (000s oz 100% basis) |
3 |
5 |
(33 |
)% |
10 |
(67 |
)% |
Cost of sales ($/oz) |
1,832 |
1,640 |
12 |
% |
1,769 |
4 |
% |
Total cash costs ($/oz)b |
778 |
637 |
22 |
% |
662 |
18 |
% |
All-in sustaining costs ($/oz)b |
831 |
677 |
23 |
% |
684 |
21 |
% |
Pueblo Viejo (60%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
79 |
77 |
3 |
% |
121 |
(35 |
)% |
Gold produced (000s oz 100% basis) |
131 |
128 |
3 |
% |
202 |
(35 |
)% |
Cost of sales ($/oz) |
1,501 |
1,344 |
12 |
% |
1,097 |
37 |
% |
Total cash costs ($/oz)b |
935 |
840 |
11 |
% |
733 |
28 |
% |
All-in sustaining costs ($/oz)b |
1,280 |
1,219 |
5 |
% |
1,063 |
20 |
% |
|
For the three months ended |
|
9/30/23 |
6/30/23 |
% Change |
9/30/22 |
% Change |
Loulo-Gounkoto (80%) |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
142 |
141 |
1 |
% |
130 |
9 |
% |
Gold produced (000s oz 100% basis) |
176 |
176 |
1 |
% |
162 |
9 |
% |
Cost of sales ($/oz) |
1,087 |
1,150 |
(5 |
)% |
1,220 |
(11 |
)% |
Total cash costs ($/oz)b |
773 |
801 |
(3 |
)% |
845 |
(9 |
)% |
All-in sustaining costs ($/oz)b |
1,068 |
1,245 |
(14 |
)% |
1,216 |
(12 |
)% |
Kibali (45%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
99 |
87 |
14 |
% |
83 |
19 |
% |
Gold produced (000s oz 100% basis) |
221 |
195 |
14 |
% |
184 |
19 |
% |
Cost of sales ($/oz) |
1,152 |
1,269 |
(9 |
)% |
1,047 |
10 |
% |
Total cash costs ($/oz)b |
694 |
797 |
(13 |
)% |
731 |
(5 |
)% |
All-in sustaining costs ($/oz)b |
801 |
955 |
(16 |
)% |
876 |
(9 |
)% |
Veladero (50%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
55 |
54 |
2 |
% |
41 |
34 |
% |
Gold produced (000s oz 100% basis) |
111 |
108 |
2 |
% |
83 |
34 |
% |
Cost of sales ($/oz) |
1,376 |
1,424 |
(3 |
)% |
1,430 |
(4 |
)% |
Total cash costs ($/oz)b |
988 |
999 |
(1 |
)% |
893 |
11 |
% |
All-in sustaining costs ($/oz)b |
1,314 |
1,599 |
(18 |
)% |
1,570 |
(16 |
)% |
Porgera (47.5%)d |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
— |
— |
— |
% |
— |
— |
% |
Gold produced (000s oz 100% basis) |
— |
— |
— |
% |
— |
— |
% |
Cost of sales ($/oz) |
— |
— |
— |
% |
— |
— |
% |
Total cash costs ($/oz)b |
— |
— |
— |
% |
— |
— |
% |
All-in sustaining costs ($/oz)b |
— |
— |
— |
% |
— |
— |
% |
Tongon (89.7%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
47 |
44 |
7 |
% |
41 |
15 |
% |
Gold produced (000s oz 100% basis) |
53 |
49 |
7 |
% |
46 |
15 |
% |
Cost of sales ($/oz) |
1,423 |
1,514 |
(6 |
)% |
1,744 |
(18 |
)% |
Total cash costs ($/oz)b |
1,217 |
1,380 |
(12 |
)% |
1,462 |
(17 |
)% |
All-in sustaining costs ($/oz)b |
1,331 |
1,465 |
(9 |
)% |
1,607 |
(17 |
)% |
Hemlo |
|
|
|
|
|
Gold produced (000s oz) |
31 |
35 |
(11 |
)% |
28 |
11 |
% |
Cost of sales ($/oz) |
1,721 |
1,562 |
10 |
% |
1,670 |
3 |
% |
Total cash costs ($/oz)b |
1,502 |
1,356 |
11 |
% |
1,446 |
4 |
% |
All-in sustaining costs ($/oz)b |
1,799 |
1,634 |
10 |
% |
1,865 |
(4 |
)% |
North Mara (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
62 |
64 |
(3 |
)% |
71 |
(13 |
)% |
Gold produced (000s oz 100% basis) |
73 |
77 |
(3 |
)% |
84 |
(13 |
)% |
Cost of sales ($/oz) |
1,244 |
1,208 |
3 |
% |
956 |
30 |
% |
Total cash costs ($/oz)b |
999 |
942 |
6 |
% |
737 |
36 |
% |
All-in sustaining costs ($/oz)b |
1,429 |
1,355 |
5 |
% |
951 |
50 |
% |
|
For the three months ended |
|
9/30/23 |
6/30/23 |
% Change |
9/30/22 |
% Change |
Bulyanhulu (84%) |
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
46 |
49 |
(6 |
)% |
48 |
(4 |
)% |
Gold produced (000s oz 100% basis) |
55 |
58 |
(6 |
)% |
58 |
(4 |
)% |
Cost of sales ($/oz) |
1,261 |
1,231 |
2 |
% |
1,229 |
3 |
% |
Total cash costs ($/oz)b |
859 |
850 |
1 |
% |
898 |
(4 |
)% |
All-in sustaining costs ($/oz)b |
1,132 |
1,105 |
2 |
% |
1,170 |
(3 |
)% |
Total Attributable to
Barricke |
|
|
|
|
|
|
|
Gold produced (000s oz) |
1,039 |
1,009 |
3 |
% |
988 |
5 |
% |
Cost of sales ($/oz)f |
1,277 |
1,323 |
(3 |
)% |
1,226 |
4 |
% |
Total cash costs ($/oz)b |
912 |
963 |
(5 |
)% |
891 |
2 |
% |
All-in sustaining costs ($/oz)b |
1,255 |
1,355 |
(7 |
)% |
1,269 |
(1 |
)% |
a. These results represent our 61.5% interest in Carlin, Cortez,
Turquoise Ridge, Phoenix and Long Canyon.b. Further information on
these non-GAAP financial performance measures, including detailed
reconciliations, is included in the endnotes to this press
release.c. Includes Goldrush.d. As Porgera was placed on care and
maintenance on April 25, 2020, no operating data or per ounce data
is provided.e. Excludes Pierina, which is producing incidental
ounces while in closure.f. Gold cost of sales per ounce is
calculated as cost of sales across our gold operations (excluding
sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using Barrick's ownership
share).
Production and Cost Summary -
Copper
|
For the three months ended |
|
9/30/23 |
6/30/23 |
% Change |
9/30/22 |
% Change |
Lumwana |
|
|
|
|
|
Copper production (Mlbs) |
72 |
67 |
7 |
% |
82 |
(12 |
)% |
Cost of sales ($/lb) |
2.48 |
2.80 |
(11 |
)% |
2.19 |
13 |
% |
C1 cash costs ($/lb)a |
1.86 |
2.30 |
(19 |
)% |
1.78 |
4 |
% |
All-in sustaining costs ($/lb)a |
3.41 |
3.29 |
4 |
% |
3.50 |
(3 |
)% |
Zaldívar
(50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
22 |
22 |
0 |
% |
23 |
(4 |
)% |
Copper production (Mlbs 100% basis) |
46 |
43 |
0 |
% |
45 |
(4 |
)% |
Cost of sales ($/lb) |
3.86 |
3.89 |
(1 |
)% |
3.20 |
21 |
% |
C1 cash costs ($/lb)a |
2.99 |
3.02 |
(1 |
)% |
2.45 |
22 |
% |
All-in sustaining costs ($/lb)a |
3.39 |
3.73 |
(9 |
)% |
2.94 |
15 |
% |
Jabal Sayid (50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
18 |
18 |
0 |
% |
18 |
0 |
% |
Copper production (Mlbs 100% basis) |
35 |
35 |
0 |
% |
37 |
0 |
% |
Cost of sales ($/lb) |
1.72 |
1.61 |
7 |
% |
1.58 |
9 |
% |
C1 cash costs ($/lb)a |
1.45 |
1.26 |
15 |
% |
1.41 |
3 |
% |
All-in sustaining costs ($/lb)a |
1.64 |
1.42 |
15 |
% |
1.52 |
8 |
% |
Total Attributable to Barrick |
|
|
|
|
|
Copper production (Mlbs) |
112 |
107 |
5 |
% |
123 |
(9 |
)% |
Cost of sales ($/lb)b |
2.68 |
2.84 |
(6 |
)% |
2.30 |
17 |
% |
C1 cash costs ($/lb)a |
2.05 |
2.28 |
(10 |
)% |
1.86 |
10 |
% |
All-in sustaining costs ($/lb)a |
3.23 |
3.13 |
3 |
% |
3.13 |
3 |
% |
a. Further information on these non-GAAP financial performance
measures, including detailed reconciliations, is included in the
endnotes to this press release.b. Copper cost of sales per pound is
calculated as cost of sales across our copper operations divided by
pounds sold (both on an attributable basis using Barrick's
ownership share).
Financial and Operating Highlights
|
For the three months ended |
|
For the nine months ended |
|
9/30/23 |
|
6/30/23 |
|
% Change |
|
9/30/22 |
|
% Change |
|
9/30/23 |
|
9/30/22 |
|
% Change |
Financial
Results ($ millions) |
|
|
|
|
|
|
|
|
|
|
Revenues |
2,862 |
|
2,833 |
|
1 |
% |
|
2,527 |
|
13 |
% |
|
8,338 |
|
8,239 |
|
1 |
% |
Cost of
sales |
1,915 |
|
1,937 |
|
(1 |
)% |
|
1,815 |
|
6 |
% |
|
5,793 |
|
5,404 |
|
7 |
% |
Net earningsa |
368 |
|
305 |
|
21 |
% |
|
241 |
|
53 |
% |
|
793 |
|
1,167 |
|
(32 |
)% |
Adjusted net earningsb |
418 |
|
336 |
|
24 |
% |
|
224 |
|
87 |
% |
|
1,001 |
|
1,106 |
|
(9 |
)% |
Adjusted EBITDAb |
1,464 |
|
1,368 |
|
7 |
% |
|
1,155 |
|
27 |
% |
|
4,015 |
|
4,327 |
|
(7 |
)% |
Adjusted EBITDA marginc |
51 |
% |
48 |
% |
6 |
% |
|
46 |
% |
11 |
% |
|
48 |
% |
53 |
% |
(9 |
)% |
Minesite sustaining capital
expendituresb,d |
529 |
|
524 |
|
1 |
% |
|
571 |
|
(7 |
)% |
|
1,507 |
|
1,514 |
|
0 |
% |
Project capital
expendituresb,d |
227 |
|
238 |
|
(5 |
)% |
|
213 |
|
7 |
% |
|
691 |
|
625 |
|
11 |
% |
Total
consolidated capital expendituresd,e |
768 |
|
769 |
|
0 |
% |
|
792 |
|
(3 |
)% |
|
2,225 |
|
2,158 |
|
3 |
% |
Net cash
provided by operating activities |
1,127 |
|
832 |
|
35 |
% |
|
758 |
|
49 |
% |
|
2,735 |
|
2,686 |
|
2 |
% |
Net cash provided by operating
activities marginf |
39 |
% |
29 |
% |
34 |
% |
|
30 |
% |
30 |
% |
|
33 |
% |
33 |
% |
0 |
% |
Free cash flowb |
359 |
|
63 |
|
470 |
% |
|
(34 |
) |
1,156 |
% |
|
510 |
|
528 |
|
(3 |
)% |
Net
earnings per share (basic and diluted) |
0.21 |
|
0.17 |
|
24 |
% |
|
0.14 |
|
50 |
% |
|
0.45 |
|
0.66 |
|
(32 |
)% |
Adjusted net earnings (basic)b
per share |
0.24 |
|
0.19 |
|
26 |
% |
|
0.13 |
|
85 |
% |
|
0.57 |
|
0.62 |
|
(8 |
)% |
Weighted average diluted common shares (millions of shares) |
1,755 |
|
1,755 |
|
0 |
% |
|
1,768 |
|
(1 |
)% |
|
1,755 |
|
1,775 |
|
(1 |
)% |
Operating Results |
|
|
|
|
|
|
|
|
|
|
Gold production (thousands of
ounces)g |
1,039 |
|
1,009 |
|
3 |
% |
|
988 |
|
5 |
% |
|
3,000 |
|
3,021 |
|
(1 |
)% |
Gold sold (thousands of
ounces)g |
1,027 |
|
1,001 |
|
3 |
% |
|
997 |
|
3 |
% |
|
2,982 |
|
3,030 |
|
(2 |
)% |
Market
gold price ($/oz) |
1,928 |
|
1,976 |
|
(2 |
)% |
|
1,729 |
|
12 |
% |
|
1,930 |
|
1,824 |
|
6 |
% |
Realized
gold priceb,g ($/oz) |
1,928 |
|
1,972 |
|
(2 |
)% |
|
1,722 |
|
12 |
% |
|
1,934 |
|
1,820 |
|
6 |
% |
Gold
cost of sales (Barrick’s share)g,h ($/oz) |
1,277 |
|
1,323 |
|
(3 |
)% |
|
1,226 |
|
4 |
% |
|
1,325 |
|
1,211 |
|
9 |
% |
Gold total cash costsb,g
($/oz) |
912 |
|
963 |
|
(5 |
)% |
|
891 |
|
2 |
% |
|
953 |
|
859 |
|
11 |
% |
Gold
all-in sustaining costsb,g ($/oz) |
1,255 |
|
1,355 |
|
(7 |
)% |
|
1,269 |
|
(1 |
)% |
|
1,325 |
|
1,215 |
|
9 |
% |
Copper production (millions of
pounds)g |
112 |
|
107 |
|
5 |
% |
|
123 |
|
(9 |
)% |
|
307 |
|
344 |
|
(11 |
)% |
Copper sold (millions of
pounds)g |
101 |
|
101 |
|
0 |
% |
|
120 |
|
(16 |
)% |
|
291 |
|
346 |
|
(16 |
)% |
Market
copper price ($/lb) |
3.79 |
|
3.84 |
|
(1 |
)% |
|
3.51 |
|
8 |
% |
|
3.89 |
|
4.11 |
|
(5 |
)% |
Realized
copper priceb,g ($/lb) |
3.78 |
|
3.70 |
|
2 |
% |
|
3.24 |
|
17 |
% |
|
3.88 |
|
3.86 |
|
1 |
% |
Copper
cost of sales (Barrick’s share)g,i ($/lb) |
2.68 |
|
2.84 |
|
(6 |
)% |
|
2.30 |
|
17 |
% |
|
2.90 |
|
2.21 |
|
31 |
% |
Copper
C1 cash costsb,g ($/lb) |
2.05 |
|
2.28 |
|
(10 |
)% |
|
1.86 |
|
10 |
% |
|
2.33 |
|
1.79 |
|
30 |
% |
Copper
all-in sustaining costsb,g ($/lb) |
3.23 |
|
3.13 |
|
3 |
% |
|
3.13 |
|
3 |
% |
|
3.25 |
|
2.96 |
|
10 |
% |
|
As at 9/30/23 |
|
As at 6/30/23 |
|
% Change |
|
As at 9/30/22 |
|
% Change |
|
|
|
|
Financial
Position ($ millions) |
|
|
|
|
|
|
|
|
|
|
Debt
(current and long-term) |
4,775 |
|
4,774 |
|
0 |
% |
|
5,095 |
|
(6 |
)% |
|
|
|
|
Cash and
equivalents |
4,261 |
|
4,157 |
|
3 |
% |
|
5,240 |
|
(19 |
)% |
|
|
|
|
Debt, net of cash |
514 |
|
617 |
|
(17 |
)% |
|
(145 |
) |
454 |
% |
|
|
|
|
a. Net earnings represents net earnings attributable
to the equity holders of the Company.b. Further
information on these non-GAAP financial performance measures,
including detailed reconciliations, is included in the endnotes to
this press release.c. Represents adjusted EBITDA
divided by revenue.d. 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.e. Total
consolidated capital expenditures also includes capitalized
interest of $12 million and $27 million, respectively, for the
three and nine month periods ended September 30, 2023
(June 30, 2023: $7 million and September 30, 2022: $8
million and $19 million, respectively).f.
Represents net cash provided by operating activities divided
by revenue.g. On an attributable basis.
h. 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).i.
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 endedSeptember 30, |
|
Nine months endedSeptember 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue (notes 4 and 5) |
$ |
2,862 |
|
$ |
2,527 |
|
$ |
8,338 |
|
$ |
8,239 |
|
Costs and expenses
(income) |
|
|
|
|
Cost of sales (notes 4 and
6) |
|
1,915 |
|
|
1,815 |
|
|
5,793 |
|
|
5,404 |
|
General and administrative
expenses |
|
30 |
|
|
26 |
|
|
97 |
|
|
110 |
|
Exploration, evaluation and
project expenses |
|
86 |
|
|
77 |
|
|
258 |
|
|
244 |
|
Impairment charges (notes 8b
and 12) |
|
— |
|
|
24 |
|
|
23 |
|
|
29 |
|
Loss on currency
translation |
|
30 |
|
|
3 |
|
|
56 |
|
|
12 |
|
Closed mine
rehabilitation |
|
(44 |
) |
|
(55 |
) |
|
(35 |
) |
|
(180 |
) |
Income from equity investees
(note 11) |
|
(68 |
) |
|
(52 |
) |
|
(179 |
) |
|
(240 |
) |
Other
expense (income) (note 8a) |
|
58 |
|
|
(9 |
) |
|
128 |
|
|
(18 |
) |
Income before finance
costs and income taxes |
$ |
855 |
|
$ |
698 |
|
$ |
2,197 |
|
$ |
2,878 |
|
Finance
costs, net |
|
(52 |
) |
|
(73 |
) |
|
(154 |
) |
|
(250 |
) |
Income before income
taxes |
$ |
803 |
|
$ |
625 |
|
$ |
2,043 |
|
$ |
2,628 |
|
Income
tax expense (note 9) |
|
(218 |
) |
|
(215 |
) |
|
(687 |
) |
|
(795 |
) |
Net income |
$ |
585 |
|
$ |
410 |
|
$ |
1,356 |
|
$ |
1,833 |
|
Attributable
to: |
|
|
|
|
Equity holders of Barrick Gold
Corporation |
$ |
368 |
|
$ |
241 |
|
$ |
793 |
|
$ |
1,167 |
|
Non-controlling interests (note 15) |
$ |
217 |
|
$ |
169 |
|
$ |
563 |
|
$ |
666 |
|
|
|
|
|
|
Earnings per share
data attributable to the equity holders of Barrick Gold Corporation
(note 7) |
|
|
|
|
Net income |
|
|
|
|
Basic |
$ |
0.21 |
|
$ |
0.14 |
|
$ |
0.45 |
|
$ |
0.66 |
|
Diluted |
$ |
0.21 |
|
$ |
0.14 |
|
$ |
0.45 |
|
$ |
0.66 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Third 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 endedSeptember 30, |
|
Nine months endedSeptember 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net
income |
$ |
585 |
|
$ |
410 |
|
$ |
1,356 |
|
$ |
1,833 |
|
Other comprehensive income (loss), net of
taxes |
|
|
|
|
Items that may be
reclassified subsequently to profit or loss: |
|
|
|
|
Realized
losses on derivatives designated as cash flow hedges, net of tax
$nil, $nil, $nil and $nil |
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
Currency
translation adjustments, net of tax $nil, $nil, $nil and $nil |
|
— |
|
|
1 |
|
|
(3 |
) |
|
2 |
|
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 |
) |
|
— |
|
|
(2 |
) |
Net
change on equity investments, net of tax $1, $nil, $nil and
$(6) |
|
(12 |
) |
|
3 |
|
|
(17 |
) |
|
35 |
|
Total other comprehensive (loss) income |
|
(12 |
) |
|
4 |
|
|
(20 |
) |
|
36 |
|
Total comprehensive income |
$ |
573 |
|
$ |
414 |
|
$ |
1,336 |
|
$ |
1,869 |
|
Attributable to: |
|
|
|
|
Equity
holders of Barrick Gold Corporation |
$ |
356 |
|
$ |
245 |
|
$ |
773 |
|
$ |
1,203 |
|
Non-controlling interests |
$ |
217 |
|
$ |
169 |
|
$ |
563 |
|
$ |
666 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Third 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 endedSeptember 30, |
|
Nine months endedSeptember 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
OPERATING
ACTIVITIES |
|
|
|
|
Net income |
$ |
585 |
|
$ |
410 |
|
$ |
1,356 |
|
$ |
1,833 |
|
Adjustments for the following
items: |
|
|
|
|
Depreciation |
|
504 |
|
|
457 |
|
|
1,479 |
|
|
1,393 |
|
Finance costs, net1 |
|
52 |
|
|
73 |
|
|
154 |
|
|
250 |
|
Impairment charges (notes 8b and 12) |
|
— |
|
|
24 |
|
|
23 |
|
|
29 |
|
Income tax expense (note 9) |
|
218 |
|
|
215 |
|
|
687 |
|
|
795 |
|
Income from equity investees (note 11) |
|
(68 |
) |
|
(52 |
) |
|
(179 |
) |
|
(240 |
) |
Gain on sale of non-current assets |
|
(4 |
) |
|
(64 |
) |
|
(10 |
) |
|
(86 |
) |
Loss on currency translation |
|
30 |
|
|
3 |
|
|
56 |
|
|
12 |
|
Change in working capital
(note 10) |
|
(47 |
) |
|
(52 |
) |
|
(298 |
) |
|
(217 |
) |
Other
operating activities (note 10) |
|
(74 |
) |
|
(91 |
) |
|
(73 |
) |
|
(294 |
) |
Operating cash flows before
interest and income taxes |
|
1,196 |
|
|
923 |
|
|
3,195 |
|
|
3,475 |
|
Interest paid |
|
(31 |
) |
|
(23 |
) |
|
(184 |
) |
|
(175 |
) |
Interest received1 |
|
57 |
|
|
30 |
|
|
157 |
|
|
52 |
|
Income
taxes paid2 |
|
(95 |
) |
|
(172 |
) |
|
(433 |
) |
|
(666 |
) |
Net cash provided by operating activities |
|
1,127 |
|
|
758 |
|
|
2,735 |
|
|
2,686 |
|
INVESTING
ACTIVITIES |
|
|
|
|
Property, plant and
equipment |
|
|
|
|
Capital expenditures (note 4) |
|
(768 |
) |
|
(792 |
) |
|
(2,225 |
) |
|
(2,158 |
) |
Sales proceeds |
|
2 |
|
|
52 |
|
|
8 |
|
|
75 |
|
Investment sales |
|
3 |
|
|
— |
|
|
3 |
|
|
382 |
|
Dividends received from equity
method investments (note 11) |
|
74 |
|
|
101 |
|
|
159 |
|
|
770 |
|
Shareholder loan repayments from equity method investments (note
11) |
|
— |
|
|
— |
|
|
5 |
|
|
— |
|
Net cash used in investing activities |
|
(689 |
) |
|
(639 |
) |
|
(2,050 |
) |
|
(931 |
) |
FINANCING
ACTIVITIES |
|
|
|
|
Lease repayments |
|
(3 |
) |
|
(6 |
) |
|
(11 |
) |
|
(16 |
) |
Debt repayments |
|
— |
|
|
(56 |
) |
|
— |
|
|
(56 |
) |
Dividends |
|
(175 |
) |
|
(351 |
) |
|
(524 |
) |
|
(882 |
) |
Share buyback program |
|
— |
|
|
(141 |
) |
|
— |
|
|
(314 |
) |
Funding from non-controlling
interests (note 15) |
|
13 |
|
|
— |
|
|
23 |
|
|
— |
|
Disbursements to
non-controlling interests (note 15) |
|
(175 |
) |
|
(162 |
) |
|
(399 |
) |
|
(661 |
) |
Other
financing activities (note 10) |
|
7 |
|
|
60 |
|
|
48 |
|
|
140 |
|
Net cash used in financing activities |
|
(333 |
) |
|
(656 |
) |
|
(863 |
) |
|
(1,789 |
) |
Effect of exchange rate changes on cash and
equivalents |
|
(1 |
) |
|
(3 |
) |
|
(1 |
) |
|
(6 |
) |
Net increase (decrease) in
cash and equivalents |
|
104 |
|
|
(540 |
) |
|
(179 |
) |
|
(40 |
) |
Cash and equivalents at the beginning of
period |
|
4,157 |
|
|
5,780 |
|
|
4,440 |
|
|
5,280 |
|
Cash and equivalents at the end of period |
$ |
4,261 |
|
$ |
5,240 |
|
$ |
4,261 |
|
$ |
5,240 |
|
1 2022 figures have been restated to
reflect the change in presentation to present interest received
($30 million for the three months ended and $52 million for the
nine months ended September 30, 2022) separately from finance
costs. 2 Income taxes paid excludes
$68 million (2022: $59 million) for the three months
ended September 30, 2023 and $124 million (2022:
$95 million) for the nine months ended September 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 Third Quarter Report 2023
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Balance Sheets
Barrick
Gold Corporation (in millions of United States dollars)
(Unaudited) |
As at September 30, 2023 |
|
As at December 31, 2022 |
|
ASSETS |
|
|
Current assets |
|
|
Cash and equivalents |
$4,261 |
|
$4,440 |
|
Accounts receivable |
|
561 |
|
|
554 |
|
Inventories |
|
1,913 |
|
|
1,781 |
|
Other current assets (note 13b) |
|
684 |
|
|
1,690 |
|
Total current assets |
$7,419 |
|
$8,465 |
|
Non-current assets |
|
|
Equity in investees (note 11) |
|
3,998 |
|
|
3,983 |
|
Property, plant and equipment |
|
26,621 |
|
|
25,821 |
|
Goodwill |
|
3,581 |
|
|
3,581 |
|
Intangible assets |
|
149 |
|
|
149 |
|
Deferred income tax assets |
|
27 |
|
|
19 |
|
Non-current portion of inventory |
|
2,774 |
|
|
2,819 |
|
Other assets |
|
1,026 |
|
|
1,128 |
|
Total assets |
$45,595 |
|
$45,965 |
|
LIABILITIES AND
EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$1,584 |
|
$1,556 |
|
Debt |
|
8 |
|
|
13 |
|
Current income tax liabilities |
|
313 |
|
|
163 |
|
Other current liabilities (note 13b) |
|
513 |
|
|
1,388 |
|
Total current liabilities |
$2,418 |
|
$3,120 |
|
Non-current liabilities |
|
|
Debt |
|
4,767 |
|
|
4,769 |
|
Provisions |
|
2,112 |
|
|
2,211 |
|
Deferred income tax liabilities |
|
3,367 |
|
|
3,247 |
|
Other liabilities |
|
1,233 |
|
|
1,329 |
|
Total liabilities |
$13,897 |
|
$14,676 |
|
Equity |
|
|
Capital stock (note 14) |
$28,117 |
|
$28,114 |
|
Deficit |
|
(7,016 |
) |
|
(7,282 |
) |
Accumulated other comprehensive income (loss) |
|
6 |
|
|
26 |
|
Other |
|
1,913 |
|
|
1,913 |
|
Total equity attributable to Barrick Gold Corporation
shareholders |
$23,020 |
|
$22,771 |
|
Non-controlling interests (note 15) |
|
8,678 |
|
|
8,518 |
|
Total equity |
$31,698 |
|
$31,289 |
|
Contingencies and commitments (notes 4 and 16) |
|
|
Total liabilities and equity |
$45,595 |
|
$45,965 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Third 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) |
CommonShares(in thousands) |
|
Capital stock |
|
Retainedearnings(deficit) |
|
Accumulated othercomprehensiveincome (loss)1 |
|
Other2 |
|
Total equityattributable toshareholders |
|
Non-controllinginterests |
|
Totalequity |
|
At January 1, 2023 |
1,755,350 |
|
$28,114 |
|
($7,282 |
) |
$26 |
|
$ 1,913 |
|
$22,771 |
|
$8,518 |
|
$31,289 |
|
Net income |
— |
|
|
— |
|
|
793 |
|
|
— |
|
|
— |
|
|
793 |
|
|
563 |
|
|
1,356 |
|
Total other comprehensive loss |
— |
|
|
— |
|
|
— |
|
|
(20 |
) |
|
— |
|
|
(20 |
) |
|
— |
|
|
(20 |
) |
Total comprehensive income (loss) |
— |
|
|
— |
|
|
793 |
|
|
(20 |
) |
|
— |
|
|
773 |
|
|
563 |
|
|
1,336 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(524 |
) |
|
— |
|
|
— |
|
|
(524 |
) |
|
— |
|
|
(524 |
) |
Funding from non-controlling interests (note 15) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
23 |
|
|
23 |
|
Disbursements to non-controlling interests (note 15) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(426 |
) |
|
(426 |
) |
Dividend reinvestment plan (note 14) |
173 |
|
|
3 |
|
|
(3 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total transactions with owners |
173 |
|
|
3 |
|
|
(527 |
) |
|
— |
|
|
— |
|
|
(524 |
) |
|
(403 |
) |
|
(927 |
) |
At September 30, 2023 |
1,755,523 |
|
$28,117 |
|
($7,016 |
) |
$6 |
|
$1,913 |
|
$23,020 |
|
$8,678 |
|
$31,698 |
|
|
|
|
|
|
|
|
|
|
At January 1, 2022 |
1,779,331 |
|
$28,497 |
|
($6,566 |
) |
($23 |
) |
$1,949 |
|
$23,857 |
|
$8,450 |
|
$32,307 |
|
Net income |
— |
|
|
— |
|
|
1,167 |
|
|
— |
|
|
— |
|
|
1,167 |
|
|
666 |
|
|
1,833 |
|
Total other comprehensive income |
— |
|
|
— |
|
|
— |
|
|
36 |
|
|
— |
|
|
36 |
|
|
— |
|
|
36 |
|
Total comprehensive income |
— |
|
|
— |
|
|
1,167 |
|
|
36 |
|
|
— |
|
|
1,203 |
|
|
666 |
|
|
1,869 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(882 |
) |
|
— |
|
|
— |
|
|
(882 |
) |
|
— |
|
|
(882 |
) |
Disbursements to non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(673 |
) |
|
(673 |
) |
Dividend reinvestment plan |
204 |
|
|
3 |
|
|
(3 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Share buyback program |
(17,500 |
) |
|
(280 |
) |
|
— |
|
|
— |
|
|
(34 |
) |
|
(314 |
) |
|
— |
|
|
(314 |
) |
Total transactions with owners |
(17,296 |
) |
|
(277 |
) |
|
(885 |
) |
|
— |
|
|
(34 |
) |
|
(1,196 |
) |
|
(673 |
) |
|
(1,869 |
) |
At September 30, 2022 |
1,762,035 |
|
$28,220 |
|
($6,284 |
) |
$13 |
|
$1,915 |
|
$23,864 |
|
$8,443 |
|
$32,307 |
|
1 Includes cumulative translation losses
at September 30, 2023: $95 million (December 31,
2022: $93 million; September 30, 2022: $92
million).2 Includes additional paid-in
capital as at September 30, 2023: $1,875 million
(December 31, 2022: $1,875 million; September 30,
2022: $1,877 million).
The notes to these unaudited condensed interim financial
statements, which are contained in the Third 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 1
On a 100% basis. Refer 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. See Appendix B – Outlook Assumptions.
Endnote 2
See Appendix B - Outlook Assumptions. Gold
Equivalent Ounces from copper assets are calculated using a gold
price of $1,300/oz and a copper price of $3.00/lb.
Endnote 3
“Free cash flow” is a non-GAAP financial measure
that deducts capital expenditures from net cash provided by
operating activities. Management believes this to be a useful
indicator of our ability to operate without reliance on additional
borrowing or usage of existing cash. Free cash flow is intended to
provide additional information only and does not have any
standardized definition under IFRS, and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. The measure is not necessarily indicative
of operating profit or cash flow from operations as determined
under IFRS. Other companies may calculate this measure differently.
Further details on this non-GAAP financial performance measure are
provided in the MD&A accompanying Barrick’s financial
statements filed from time to time on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov. The following table reconciles this non-GAAP
financial measure to the most directly comparable IFRS measure.
Reconciliation of Net Cash Provided by
Operating Activities to Free Cash Flow
($ millions) |
For the three months ended |
|
For the nine months ended |
|
|
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
|
9/30/2023 |
|
9/30/2022 |
|
Net cash provided by operating activities |
1,127 |
|
832 |
|
758 |
|
2,735 |
|
2,686 |
|
Capital
expenditures |
(768 |
) |
(769 |
) |
(792 |
) |
(2,225 |
) |
(2,158 |
) |
Free cash flow |
359 |
|
63 |
|
-34 |
|
510 |
|
528 |
|
|
|
|
|
|
|
|
|
|
|
|
Endnote 4
On an attributable basis.
Endnote 5
“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 and copper prices and to assess our gold and
copper 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 nine months ended |
|
9/30/23 |
6/30/23 |
9/30/22 |
9/30/23 |
6/30/23 |
9/30/22 |
9/30/23 |
9/30/22 |
9/30/23 |
9/30/22 |
|
Sales |
2,588 |
|
2,584 |
|
2,277 |
|
209 |
189 |
200 |
7,583 |
|
7,385 |
|
569 |
698 |
|
Sales
applicable to non-controlling interests |
(797 |
) |
(787 |
) |
(700 |
) |
0 |
0 |
0 |
(2,307 |
) |
(2,266 |
) |
0 |
0 |
|
Sales
applicable to equity method investmentsa,b |
187 |
|
171 |
|
152 |
|
126 |
133 |
134 |
484 |
|
433 |
|
419 |
486 |
|
Sales
applicable to sites in closure or care and maintenancec |
(4 |
) |
(2 |
) |
(14 |
) |
0 |
0 |
0 |
(13 |
) |
(44 |
) |
0 |
0 |
|
Treatment and
refinement charges |
7 |
|
8 |
|
3 |
|
47 |
50 |
54 |
22 |
|
8 |
|
140 |
152 |
|
Revenues – as
adjusted |
1,981 |
|
1,974 |
|
1,718 |
|
382 |
372 |
388 |
5,769 |
|
5,516 |
|
1,128 |
1,336 |
|
Ounces/pounds
sold (000s ounces/millions pounds)c |
1,027 |
|
1,001 |
|
997 |
|
101 |
101 |
120 |
2,982 |
|
3,030 |
|
291 |
346 |
|
Realized
gold/copper price per ounce/poundd |
1,928 |
|
1,972 |
|
1,722 |
|
3.78 |
3.70 |
3.24 |
1,934 |
|
1,820 |
|
3.88 |
3.86 |
|
a. |
Represents sales of
$187 million and $484 million, respectively, for the three and
nine month periods ended September 30, 2023 (June 30,
2023: $171 million and September 30, 2022: $152 million
and $433 million, respectively) applicable to our 45% equity method
investment in Kibali for gold. Represents sales of $82 million and
$261 million, respectively, for the three and nine month
periods ended September 30, 2023 (June 30, 2023: $81
million and September 30, 2022: $82 million and $299 million,
respectively) applicable to our 50% equity method investment in
Zaldívar and $49 million and $176 million, respectively
(June 30, 2023: $58 million and September 30, 2022: $57
million and $201 million, respectively), applicable to our 50%
equity method investment in Jabal Sayid for copper. |
b. |
Sales applicable to
equity method investments are net of treatment and refinement
charges. |
c. |
On an attributable
basis. Excludes Pierina, which is producing incidental ounces while
in closure. |
d. |
Realized price per
ounce/pound may not calculate based on amounts presented in this
table due to rounding. |
Endnote 6
“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 nine months ended |
|
|
9/30/23 |
6/30/23 |
9/30/22 |
9/30/23 |
9/30/22 |
|
Net earnings attributable to equity holders of the Company |
368 |
|
305 |
|
241 |
|
793 |
|
1,167 |
|
|
Impairment charges (reversals)
related to intangibles, goodwill, property, plant and equipment,
and investmentsa |
0 |
|
22 |
|
24 |
|
23 |
|
29 |
|
|
Acquisition/disposition
gainsb |
(4 |
) |
(3 |
) |
(64 |
) |
(10 |
) |
(86 |
) |
|
Loss
(gain) on currency translation |
30 |
|
(12 |
) |
3 |
|
56 |
|
12 |
|
|
Significant tax adjustmentsc |
19 |
|
33 |
|
44 |
|
100 |
|
99 |
|
|
Other
(income) expense adjustmentsd |
(5 |
) |
(3 |
) |
(27 |
) |
55 |
|
(109 |
) |
|
Non-controlling intereste |
4 |
|
(7 |
) |
4 |
|
(9 |
) |
(3 |
) |
|
Tax
effecte |
6 |
|
1 |
|
(1 |
) |
(7 |
) |
(3 |
) |
|
Adjusted net earnings |
418 |
|
336 |
|
224 |
|
1,001 |
|
1,106 |
|
|
Net earnings per sharef |
0.21 |
|
0.17 |
|
0.14 |
|
0.45 |
|
0.66 |
|
|
Adjusted net earnings per sharef |
0.24 |
|
0.19 |
|
0.13 |
|
0.57 |
|
0.62 |
|
|
a. |
For the three month
period ended June 30, 2023, net impairment charges were mainly
related to miscellaneous assets. For the three and nine month
periods ended September 30, 2022, net impairment charges mainly
relate to an inventory write-off at Lumwana. |
b. |
For the three and
nine month periods ended September 30, 2022,
acquisition/disposition gains mainly related to the sale of a
portfolio of royalties to Maverix Metals Inc. and the sale of a
portfolio of royalties by Nevada Gold Mines to Gold Royalty
Corp. |
c. |
For the three month
period ended September 30, 2023, significant tax adjustments were
mainly related to the de-recognition of deferred tax assets,
adjustments in respect of prior years and the re-measurement of
deferred tax balances. For the nine month period ended September
30, 2023, significant tax adjustments were mainly related to the
settlement agreement to resolve the tax dispute at Porgera, the
de-recognition of deferred tax assets, adjustments in respect of
prior years and the re-measurement of deferred tax balances. |
d. |
For the nine
month period ended September 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. |
e. |
Non-controlling
interest and tax effect for the three and nine month periods ended
September 30, 2023 primarily relates to loss (gain) on currency
translation. |
f. |
Calculated using
weighted average number of shares outstanding under the basic
method of earnings per share. |
Endnote 7
These amounts are presented on the same basis as
our guidance. Minesite sustaining capital expenditures and project
capital expenditures are non-GAAP financial measures. Capital
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 nine months ended |
|
9/30/23 |
6/30/23 |
9/30/22 |
9/30/23 |
9/30/22 |
Minesite sustaining capital expenditures |
529 |
524 |
571 |
1,507 |
1,514 |
Project
capital expenditures |
227 |
238 |
213 |
691 |
625 |
Capitalized interest |
12 |
7 |
8 |
27 |
19 |
Total consolidated capital expenditures |
768 |
769 |
792 |
2,225 |
2,158 |
Endnote 8
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). 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
non-controlling 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 nine months ended |
|
|
Footnote |
9/30/23 |
6/30/23 |
9/30/22 |
9/30/23 |
9/30/22 |
Cost of sales applicable to gold production |
|
1,736 |
|
1,753 |
|
1,638 |
|
5,250 |
|
4,923 |
|
|
Depreciation |
|
(427 |
) |
(413 |
) |
(393 |
) |
(1,285 |
) |
(1,250 |
) |
|
Cash cost of sales applicable
to equity method investments |
|
65 |
|
67 |
|
61 |
|
195 |
|
166 |
|
|
By-product credits |
|
(65 |
) |
(60 |
) |
(50 |
) |
(186 |
) |
(156 |
) |
Non-recurring
items |
a |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Other |
b |
7 |
|
5 |
|
(7 |
) |
12 |
|
(30 |
) |
Non-controlling interests |
c |
(380 |
) |
(388 |
) |
(360 |
) |
(1,146 |
) |
(1,049 |
) |
Total cash costs |
|
936 |
|
964 |
|
889 |
|
2,840 |
|
2,604 |
|
|
General & administrative costs |
|
30 |
|
28 |
|
26 |
|
97 |
|
110 |
|
|
Minesite exploration and
evaluation costs |
d |
11 |
|
14 |
|
22 |
|
36 |
|
52 |
|
|
Minesite sustaining capital
expenditures |
e |
529 |
|
524 |
|
571 |
|
1,507 |
|
1,514 |
|
|
Sustaining leases |
|
7 |
|
9 |
|
12 |
|
23 |
|
27 |
|
|
Rehabilitation - accretion and
amortization (operating sites) |
f |
14 |
|
15 |
|
12 |
|
43 |
|
36 |
|
|
Non-controlling interest, copper operations and other |
g |
(238 |
) |
(197 |
) |
(264 |
) |
(594 |
) |
(661 |
) |
All-in sustaining costs |
|
1,289 |
|
1,357 |
|
1,268 |
|
3,952 |
|
3,682 |
|
|
Global exploration and evaluation and project expense |
d |
75 |
|
87 |
|
55 |
|
222 |
|
192 |
|
|
Community relations costs not
related to current operations |
|
0 |
|
1 |
|
0 |
|
1 |
|
0 |
|
|
Project capital
expenditures |
e |
227 |
|
238 |
|
213 |
|
691 |
|
625 |
|
|
Non-sustaining leases |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
|
Rehabilitation - accretion and amortization (non-operating
sites) |
f |
6 |
|
6 |
|
5 |
|
18 |
|
13 |
|
|
Non-controlling interest and copper operations and other |
g |
(101 |
) |
(122 |
) |
(71 |
) |
(311 |
) |
(197 |
) |
All-in costs |
|
1,496 |
|
1,567 |
|
1,470 |
|
4,573 |
|
4,315 |
|
Ounces sold - attributable basis (000s ounces) |
h |
1,027 |
|
1,001 |
|
997 |
|
2,982 |
|
3,030 |
|
Cost of sales per ounce |
i,j |
1,277 |
|
1,323 |
|
1,226 |
|
1,325 |
|
1,211 |
|
Total cash
costs per ounce |
j |
912 |
|
963 |
|
891 |
|
953 |
|
859 |
|
Total
cash costs per ounce (on a co-product basis) |
j,k |
954 |
|
1,003 |
|
925 |
|
995 |
|
893 |
|
All-in
sustaining costs per ounce |
j |
1,255 |
|
1,355 |
|
1,269 |
|
1,325 |
|
1,215 |
|
All-in
sustaining costs per ounce (on a co-product basis) |
j,k |
1,297 |
|
1,395 |
|
1,303 |
|
1,367 |
|
1,249 |
|
All-in
costs per ounce |
j |
1,457 |
|
1,566 |
|
1,474 |
|
1,534 |
|
1,424 |
|
All-in
costs per ounce (on a co-product basis) |
j,k |
1,499 |
|
1,606 |
|
1,508 |
|
1,576 |
|
1,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a. |
Non-recurring itemsThese costs are not indicative
of our cost of production and have been excluded from the
calculation of total cash costs. |
b. |
OtherOther adjustments for the three and nine
month periods ended September 30, 2023 include the removal of
total cash costs and by-product credits associated with Pierina,
which is producing incidental ounces, of $nil and $3 million,
respectively (June 30, 2023: $nil; September 30, 2022: $7
million and $17 million,
respectively). |
c. |
Non-controlling interestsNon-controlling interests
include non-controlling interests related to gold production of
$536 million and $1,598 million, respectively, for the three
and nine month periods ended September 30, 2023 (June 30,
2023: $533 million and September 30, 2022: $491 million and
$1,472 million, respectively). Non-controlling interests include
NGM, Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara and
Bulyanhulu. Refer to Note 4 to the Financial Statements for further
information. |
d. |
Exploration
and evaluation costsExploration, evaluation and project
expenses are presented as minesite sustaining if it supports
current mine operations and project if it relates to future
projects. Refer to page 51 of Barrick’s Q3 2023
MD&A. |
e. |
Capital
expendituresCapital expenditures are related to our gold
sites only and are split between minesite sustaining and project
capital expenditures. Project capital expenditures are capital
spending at new projects and major, discrete projects at existing
operations intended to increase net present value through higher
production or longer mine life. Significant projects in the current
year are the plant expansion project at Pueblo Viejo and the solar
projects at NGM and Loulo-Gounkoto. Refer to page 50 of Barrick’s
Q3 2023 MD&A. |
f.
|
Rehabilitation—accretion and amortizationIncludes
depreciation on the assets related to rehabilitation provisions of
our gold operations and accretion on the rehabilitation provision
of our gold operations, split between operating and non-operating
sites. |
g. |
Non-controlling interest and copper
operationsRemoves general & administrative costs
related to non-controlling interests and copper based on a
percentage allocation of revenue. Also removes exploration,
evaluation and project expenses, rehabilitation costs and capital
expenditures incurred by our copper sites and the non-controlling
interest of NGM, Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara
and Bulyanhulu operating segments. It also includes capital
expenditures applicable to our equity method investment in Kibali.
Figures remove the impact of Pierina. The impact is summarized as
the following: |
|
($ millions) |
For the three months ended |
For the nine months ended |
|
Non-controlling interest, copper operations and other |
9/30/2023 |
6/30/2023 |
9/30/2022 |
9/30/2023 |
9/30/2022 |
|
General & administrative costs |
(5) |
(5) |
(5) |
(16) |
(23) |
|
Minesite exploration and evaluation expenses |
(4) |
(4) |
(9) |
(12) |
(19) |
|
Rehabilitation - accretion and amortization (operating sites) |
(5) |
(5) |
(3) |
(15) |
(10) |
|
Minesite sustaining capital expenditures |
(224) |
(183) |
(247) |
(551) |
(609) |
|
All-in sustaining costs total |
(238) |
(197) |
(264) |
(594) |
(661) |
|
Global exploration and evaluation and project expense |
(29) |
(37) |
(9) |
(78) |
(24) |
|
Project capital expenditures |
(72) |
(85) |
(62) |
(233) |
(173) |
|
All-in costs total |
(101) |
(122) |
(71) |
(311) |
(197) |
|
|
|
|
|
|
|
h. |
Ounces sold - attributable basisExcludes Pierina,
which is producing incidental ounces while in closure. |
i. |
Cost of sales per ounceFigures remove the cost of
sales impact of: Pierina of $nil and $3 million, respectively, for
the three and nine month periods ended September 30, 2023
(June 30, 2023: $nil and September 30, 2022: $6 million
and $17 million, respectively), which is producing incidental
ounces. Gold cost of sales per ounce is calculated as cost of sales
across our gold operations (excluding sites in closure or care and
maintenance) divided by ounces sold (both on an attributable basis
using Barrick's ownership share). |
j. |
Per ounce figuresCost of sales per ounce, total
cash costs per ounce, all-in sustaining costs per ounce and all-in
costs per ounce may not calculate based on amounts presented in
this table due to rounding. |
k. |
Co-product costs per ounceTotal cash costs per
ounce, all-in sustaining costs per ounce and all-in costs per ounce
presented on a co-product basis removes the impact of by-product
credits of our gold production (net of non-controlling interest)
calculated as: |
|
|
|
|
|
|
|
($
millions) |
For the three months ended |
For the nine months ended |
|
9/30/23 |
6/30/23 |
9/30/22 |
9/30/23 |
9/30/22 |
By-product credits |
65 |
|
60 |
|
50 |
|
186 |
|
156 |
|
Non-controlling interest |
(22 |
) |
(20 |
) |
(16 |
) |
(61 |
) |
(53 |
) |
By-product credits (net of non-controlling interest) |
43 |
|
40 |
|
34 |
|
125 |
|
103 |
|
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 nine months ended |
|
|
9/30/23 |
6/30/23 |
9/30/22 |
9/30/23 |
9/30/22 |
|
Cost of sales |
167 |
|
176 |
|
172 |
|
517 |
|
469 |
|
|
Depreciation/amortization |
(70 |
) |
(59 |
) |
(59 |
) |
(173 |
) |
(131 |
) |
|
Treatment and refinement charges |
47 |
|
50 |
|
54 |
|
140 |
|
152 |
|
|
Cash cost of sales applicable
to equity method investments |
82 |
|
84 |
|
81 |
|
253 |
|
227 |
|
|
Less:
royalties |
(15 |
) |
(16 |
) |
(23 |
) |
(46 |
) |
(87 |
) |
|
By-product credits |
(4 |
) |
(6 |
) |
(2 |
) |
(14 |
) |
(11 |
) |
|
Other |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
C1 cash costs |
207 |
|
229 |
|
223 |
|
677 |
|
619 |
|
|
General & administrative costs |
6 |
|
4 |
|
4 |
|
16 |
|
22 |
|
|
Rehabilitation - accretion and amortization |
3 |
|
2 |
|
0 |
|
7 |
|
2 |
|
|
Royalties |
15 |
|
16 |
|
23 |
|
46 |
|
87 |
|
|
Minesite
exploration and evaluation costs |
3 |
|
2 |
|
8 |
|
7 |
|
16 |
|
|
Minesite sustaining capital
expenditures |
91 |
|
58 |
|
115 |
|
182 |
|
271 |
|
|
Sustaining leases |
2 |
|
4 |
|
1 |
|
9 |
|
4 |
|
All-in sustaining costs |
327 |
|
315 |
|
374 |
|
944 |
|
1,021 |
|
Pounds sold - attributable basis (millions pounds) |
101 |
|
101 |
|
120 |
|
291 |
|
346 |
|
Cost of sales per pounda,b |
2.68 |
|
2.84 |
|
2.30 |
|
2.90 |
|
2.21 |
|
C1 cash costs per pounda |
2.05 |
|
2.28 |
|
1.86 |
|
2.33 |
|
1.79 |
|
All-in sustaining costs per pounda |
3.23 |
|
3.13 |
|
3.13 |
|
3.25 |
|
2.96 |
|
a. |
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. |
b. |
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 11
Porgera 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 landowner compensation agreements
and the finalization of a timeline for the resumption of full mine
operations. The granting of the new SML to New Porgera Limited
reduced Barrick's interest in the future production of the Porgera
mine from 47.5% to 24.5%.
Endnote 12
A Tier One Gold Asset is an asset with a
$1,300/oz reserve potential to deliver a minimum 10-year life,
annual production of at least 500,000 ounces of gold and with all
in sustaining costs per ounce in the lower half of the industry
cost curve. A Tier One Copper Asset is an asset with a $3.00/lb
reserve with potential for +5Mt contained copper in support of at
least 20 years life, annual production of at least 200ktpa, with
all in sustaining costs per pound in the lower half of the industry
cost curve. A Tier Two Gold Asset is an asset with a reserve
potential to deliver a minimum 10-year life, annual production of
at least 250,000 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 Strategic Asset is an asset which in the opinion of
Barrick, has the potential to deliver significant unrealized value
in the future.
Endnote 13
Malaria Incidence Rate is calculated as number
of new positive cases of malaria X 100 / Total employees during the
reporting period.
Endnote 14
Barrick holds a 50% ownership interest in the
Reko Diq project following the completion of the transaction
allowing for the reconstitution of the project on December 15,
2022. This completed the process that began earlier in 2022
following the conclusion of a framework agreement among the
Governments of Pakistan and Balochistan province, Barrick and
Antofagasta plc, which provided a path for the development of the
project under a reconstituted structure. The remaining 50% of the
reconstituted project is held by Pakistani stakeholders. Barrick is
the operator of the project.
Reko Diq mineral resources are estimated in
accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects as required by Canadian securities
regulatory authorities. Estimates are as of December 31, 2022,
unless otherwise noted. Attributable Indicated resources of 1,800
tonnes grading 0.26 g/t, representing 15 million ounces of gold,
and 1,900 million tonnes grading 0.44%, representing 18,000 million
pounds of copper. Inferred resources of 570 tonnes grading 0.2 g/t,
representing 3.7 million ounces of gold, and 590 million tonnes
grading 0.4%, representing 4,600 million pounds of copper. Complete
mineral reserve and mineral resource data for all mines and
projects referenced in this presentation, including tonnes, grades,
pounds, and ounces, can be found on pages 33-46 of Barrick’s 2022
Annual Information Form / Form 40-F on file with the Canadian
provincial securities regulators on SEDAR at www.sedar.com and the
Securities and Exchange Commission on EDGAR at www.sec.gov.
Endnote 15
Lumwana financial metrics and production metrics
are based upon a preliminary economic assessment which is
preliminary in nature because it includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty
that the preliminary economic assessment will be realized. The
preliminary economic assessment for Lumwana Super Pit is based upon
a $3.00/lb whittle pit shell. The assumptions outlined within the
preliminary economic assessment have formed the basis for the
ongoing pre-feasibility study and are made by the qualified
person.
Lumwana mineral resources are estimated in
accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects as required by Canadian securities
regulatory authorities. Estimates are as of December 31, 2022,
unless otherwise noted. Attributable Measured resources of 140
million tonnes grading 0.48%, representing 1,500 million pounds of
copper, Indicated resources of 960 million tonnes grading 0.55%,
representing 12,000 million pounds of copper, Measured and
Indicated resources of 1,100 million tonnes grading 0.54%,
representing 13,000 million pounds of copper and Inferred resources
of 820 million tonnes grading 0.5%,representing 8,700 million
pounds of copper. Complete mineral reserve and mineral resource
data for all mines and projects referenced in this presentation,
including tonnes, grades, pounds, and ounces, can be found on pages
33-46 of Barrick’s 2022 Annual Information Form / Form 40-F on file
with the Canadian provincial securities regulators on SEDAR at
www.sedar.com and the Securities and Exchange Commission on EDGAR
at www.sec.gov.
Endnote 16
Gold Equivalent Ounces from copper assets are
calculated using a gold price of $1300/oz and a 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 17
Categories as defined in the Greenhouse Gas
Protocol’s Technical Guidance for Calculating Scope 3 Emissions.
Achievement of Barrick’s Scope 3 targets will require collaboration
with suppliers and customers in our value chain, which are outside
of Barrick’s direct control.
Endnote 18
Gold Equivalent Ounces from copper assets are
calculated using a gold price of $1,300/oz and a copper price of
$3.00/lb.
Endnote 19
Fourmile financial metrics and production
metrics are based upon preliminary economic assessment which is
preliminary in nature because it includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty
that the preliminary economic assessment will be realized. The
preliminary economic assessment for Fourmile is based upon
$1,300/oz mineable stope optimizer. The assumptions outlined within
the preliminary economic assessment have formed the basis for the
ongoing study and are made by the qualified person. Fourmile is
currently 100% owned by Barrick. As previously disclosed, Barrick
anticipates Fourmile being contributed to the Nevada Gold Mines
joint venture if certain criteria are met following the completion
of drilling and the requisite feasibility work.
Fourmile mineral resources are estimated in
accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects as required by Canadian securities
regulatory authorities. Estimates are as of December 31, 2022,
unless otherwise noted. Indicated resources of 1.5 million tonnes
grading 10.01 g/t, representing 0.49 million ounces of gold, and
Inferred resources of 7.8 million tonnes grading 10.5 g/t,
representing 2.7 million ounces of gold, Complete mineral reserve
and mineral resource data for all mines and projects referenced in
this presentation, including tonnes, grades, pounds, and ounces,
can be found on pages 33-46 of Barrick’s 2022 Annual Information
Form / Form 40-F on file with the Canadian provincial securities
regulators on SEDAR at www.sedar.com and the Securities and
Exchange Commission on EDGAR at www.sec.gov.
Endnote 20
Refer 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 21
Porgera financial metrics and production metrics
are based upon a preliminary economic assessment which is
preliminary in nature because it includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty
that the preliminary economic assessment will be realized. The
preliminary economic assessment for Porgera is based upon a
$1,300/oz Au whittle pit shell. The assumptions outlined within the
preliminary economic assessment have formed the basis for the
ongoing pre-feasibility study and are made by the qualified
person.
Porgera mineral resources are estimated in
accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects as required by Canadian securities
regulatory authorities. Estimates are as of December 31, 2022,
unless otherwise noted. Attributable Measured resources of 1.4
million tonnes grading 5.55g/t, representing 0.25 million ounces of
gold, Indicated resources of 19 million tonnes grading 3.62g/t,
representing 2.3 million ounces of gold. Inferred resources of 8.0
million tonnes grading 3.2g/t, representing 0.82 million ounces of
gold. Complete mineral reserve and mineral resource data for all
mines and projects referenced in this presentation, including
tonnes, grades, pounds, and ounces, can be found on pages 33-46 of
Barrick’s 2022 Annual Information Form / Form 40-F on file with the
Canadian provincial securities regulators on SEDAR at www.sedar.com
and the Securities and Exchange Commission on EDGAR at
www.sec.gov.
Endnote 22
Includes Goldrush.
Endnote 23
Total cash costs and all-in sustaining costs per
ounce include costs allocated to non-operating sites.
Endnote 24
Operating 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 25
Includes corporate administration costs.
Endnote 26
EBITDA 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. Starting with the accompanying
MD&A, we are presenting attributable EBITDA, which removes the
non-controlling interest portion from our adjusted EBITDA measure.
Prior periods have been presented to allow for comparability. We
believe this additional information will assist analysts, investors
and other stakeholders of Barrick in better understanding our
ability to generate liquidity from our attributable business and
which is aligned with how we present our forward looking guidance
on gold ounces and copper pounds produced. EBITDA, adjusted EBITDA,
and attributable 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, adjusted EBITDA, and attributable
EBITDA differently. Further details on these nonGAAP 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, Adjusted EBITDA and Attributable EBITDA
($ millions) |
For the three months ended |
For the nine months ended |
|
|
9/30/23 |
6/30/23 |
9/30/22 |
9/30/23 |
9/30/22 |
Net earnings |
585 |
|
502 |
|
410 |
|
1,356 |
|
1,833 |
|
|
Income tax expense |
218 |
|
264 |
|
215 |
|
687 |
|
795 |
|
|
Finance costs, neta |
30 |
|
23 |
|
55 |
|
90 |
|
204 |
|
|
Depreciation |
504 |
|
480 |
|
457 |
|
1,479 |
|
1,393 |
|
EBITDA |
1,337 |
|
1,269 |
|
1,137 |
|
3,612 |
|
4,225 |
|
Impairment
charges (reversals) of non-current assetsb |
0 |
|
22 |
|
24 |
|
23 |
|
29 |
|
Acquisition/disposition gainsc |
(4 |
) |
(3 |
) |
(64 |
) |
(10 |
) |
(86 |
) |
Loss (gain) on
currency translation |
30 |
|
(12 |
) |
3 |
|
56 |
|
12 |
|
Other (income)
expense adjustmentsd |
(5 |
) |
(3 |
) |
(27 |
) |
55 |
|
(109 |
) |
Income tax expense, net finance costsa, and depreciation from
equity investees |
106 |
|
95 |
|
82 |
|
279 |
|
256 |
|
Adjusted EBITDA |
1,464 |
|
1,368 |
|
1,155 |
|
4,015 |
|
4,327 |
|
Non-controlling Interests |
(393 |
) |
(380 |
) |
(327 |
) |
(1,096 |
) |
(1,196 |
) |
Attributable EBITDA |
1,071 |
|
988 |
|
828 |
|
2,919 |
|
3,131 |
|
Revenues - as adjustede |
2,363 |
|
2,346 |
|
2,106 |
|
6,897 |
|
6,852 |
|
Attributable EBITDA marginf |
45 |
% |
42 |
% |
39 |
% |
42 |
% |
46 |
% |
a. |
Finance costs
exclude accretion. |
b. |
For the three month
period ended June 30, 2023, net impairment charges were mainly
related to miscellaneous assets. For the three and nine month
periods ended September 30, 2022, net impairment charges mainly
relate to an inventory write-off at Lumwana. |
c. |
For the three and
nine month periods ended September 30, 2022,
acquisition/disposition gains mainly related to the sale of a
portfolio of royalties to Maverix Metals Inc. and the sale of a
portfolio of royalties by Nevada Gold Mines to Gold Royalty
Corp. |
d. |
For the nine month
period ended September 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. |
e. |
Refer to
Reconciliation of Sales to Realized Price per ounce/pound on page
76 of Barrick’s Q3 2023 MD&A. |
f. |
Represents
attributable EBITDA divided by revenues - as adjusted. |
Endnote 27
Reko Diq “Cost of Sales” per pound Cu “C1 cash
costs” per pound Cu and “All-in sustaining costs” per pound Cu are
reported inclusive of by-product credit for gold production based
upon long term reserve prices of $1,300/oz Au and $3.00/lb Cu.
Appendix A
Reko Diq Study Snapshot
(100%)14 |
Mine Life (yrs) |
42 |
Mineral Resource14(100%
basis) |
M&I: 3.8Bt @ 0.44% Cu for 17Mt Cu |
INF: 1.2Bt @ 0.4% Cu for 4.2Mt Cu |
|
Phase 1 |
Phase 2 |
Throughput (Mtpa) |
40 (2028 – 2033) |
80 (2034 onwards) |
Average Annual Production |
Copper (kt)i |
250ii |
400ii |
Gold (koz)i |
300ii |
500ii |
Average Annual Total Tonnes Mined (TTM) (Mt) |
100ii |
200ii |
Strip Ratio |
0.4ii |
1.0ii |
Construction Capital ($bn)7 |
Approx. 5.0 – 5.5 |
Approx. 3.2 – 3.5 |
Cost of Sales ($/lb)27 |
Approx.1.2 – 1.3 |
Approx.1.1 – 1.2 |
AISC ($/lb)10,27 |
Approx.1.2 – 1.3 |
Approx.1.1 – 1.2 |
C1 Costs ($/lb)10,27 |
Approx. 0.8 – 0.9 |
Approx. 0.7 – 0.8 |
- 96.5% of Annual Copper production and 94% of Annual Gold
production from the concentrate is assumed to be payable under
industry standard smelting and refining terms.
- Indicative gold and copper recovered production profile from
Reko Diq, which is conceptual in nature. Subject to change
following an updated feasibility study.
|
Lumwana Study Snapshot15 |
Mineral Resource15(100%
attrib.) |
M&I: 1.1Bt @ 0.54% Cu for 6.0Mt Cu |
INF: 0.8Bt @ 0.5% Cu for 4.0Mt Cu |
|
Current |
Super Pit |
Mine Life (yrs) |
19 |
36ii |
Throughput (Mtpa) |
26-28 |
50 |
Avg Annual Cu Produced (kt) 100%
basisi |
150 |
240ii |
Average Annual TTM (Mt) |
110 |
250ii |
Life of Mine Strip Ratio |
3.4 |
4.3ii |
Construction Capital ($bn)7 |
N/A |
Approx. 1.6-1.9(2024 – 2028) |
Cost of Sales ($/lb) |
2.2 |
Approx. 2.1 – 2.4 |
LOM AISC ($/lb)10 |
2.3 |
Approx.1.9 – 2.2 |
LOM C1 Costs ($/lb)10 |
1.9 |
Approx. 1.8 – 2.1 |
- 96.5% of Annual Copper production from the concentrate is
assumed to be payable under industry standard smelting and refining
terms.
- Indicative copper production profile from Lumwana, which is
conceptual in nature. Subject to change following completion of the
pre-feasibility study.
|
Fourmile Conceptual PEA Study
Snapshot19 |
Mineral Resource19(100%
attrib.) |
M&I: 0.49Moz @ 10g/tINF: 2.7Moz @
10.5g/t |
Exploration Upsidei |
13 – 20Mt @ 13.3 – 20.0g/t |
Mine Life (yrs) |
+15ii |
Ore tonnes (ktpa) |
600 – 1,500ii |
Average annual gold production (Koz) |
300 – 400ii |
Construction Capital ($bn)7 |
Approx. 0.8 – 1.1 |
Cost of Sales ($/oz) |
Approx. 700 – 900 |
AISC ($/oz)9 |
Approx. 700 – 900 |
- Potential quantities and grades in
these preliminary results are conceptual in nature and there has
been insufficient exploration to define a mineral resource at this
time and it is uncertain that further exploration will result in
the target being delineated as a mineral resource.
- Indicative gold production profile
from Fourmile which is conceptual in nature. Subject to change
following completion of the pre-feasibility study.
|
Porgera Conceptual PEA Study Snapshot
(100%)21 |
Mineral Resource21(100%
basis) |
M&I: 10.2Moz Au @ 3.8g/tINF: 3.4Moz Au
@ 3.2g/t |
Exploration Upsidei |
30 – 50Mt @ 2.5 – 3.3g/t |
Mine Life (yrs) |
20ii |
Ore tonnes (ktpa) |
5,650 – 6,200ii |
Average annual gold production (Koz) |
650 – 750ii |
Expansion Capital ($bn)7 |
Approx. 0.9 – 1.1iii |
Cost of Sales ($/oz) |
Approx. 800 – 1,000 |
AISC ($/oz)9 |
Approx. 700 – 900 |
- Potential
quantities and grades in these preliminary results are conceptual
in nature and there has been insufficient exploration to define a
mineral resource at this time and it is uncertain that further
exploration will result in the target being delineated as a mineral
resource.
- Indicative gold
production profile from Porgera (100% basis) which is conceptual in
nature and is subject to change following completion of a
pre-feasibility study.
- 65% of expansion capital is planned
during 2024-2028 and 25% during 2029-2033.
|
Appendix B – Outlook
Assumptions
Key assumptions |
2023 |
2024 |
2025+ |
Gold Price ($/oz) |
1,900 |
1,300 |
1,300 |
Copper Price ($/lb) |
3.50 |
3.00 |
3.00 |
Oil Price (WTI) ($/barrel) |
90 |
70 |
70 |
AUD Exchange Rate (AUD:USD) |
0.75 |
0.75 |
0.75 |
ARS Exchange Rate (USD:ARS) |
230 |
230 |
230 |
CAD Exchange Rate (USD:CAD) |
1.30 |
1.30 |
1.30 |
CLP Exchange Rate (USD:CLP) |
800 |
900 |
900 |
EUR Exchange Rate (EUR:USD) |
1.10 |
1.20 |
1.20 |
- Barrick’s
five-year indicative base case outlook is based on our current
operating asset portfolio, sustaining projects in progress and
exploration/mineral resource management initiatives in execution.
Our outlook is based on our current reserves and resources as
disclosed in our Q4 2022 report and assumes that we will continue
to be able to convert resources into reserves. Additional asset
optimization, further exploration growth, new project initiatives
and divestitures are not included. For the group gold and copper
segments, and where applicable for a specific region, our
indicative outlook is subject to change and assumes the following:
- New open pit
production permitted and commencing at Hemlo in the second half of
2025, allowing three years for permitting and two years for
pre-stripping prior to first ore production in 2027.
- Production from
the proposed Pueblo Viejo plant expansion and tailings facility
project starting in 2023.
- Tongon will
enter care and maintenance by 2026.
- Production
attributable to Porgera is based on the assumption that the mine’s
current care and maintenance status will be temporary, and that the
suspension of operations will not have a significant impact on
Barrick’s future production.
- Our five-year
indicative base case outlook excludes:
- Production from
Fourmile.
- Production from
Pierina and Golden Sunlight, which are currently in care and
maintenance.
- Production from
long-term greenfield optionality from Donlin, Pascua-Lama, Norte
Abierto or Alturas.
- Barrick’s
ten-year base case production profile is subject to change and are
based on the same assumptions as the current five-year outlook
detailed above, except that the next five years of the ten-year
outlook assume attributable production from exploration and mineral
resource management projects in execution at Nevada Gold Mines and
Hemlo.
- Barrick’s
five-year and ten-year production profile in this presentation also
assumes the re-start of Porgera, as well as an indicative gold and
copper production profile for Reko Diq and an indicative copper
production profile for the Lumwana Super Pit expansion, both of
which are conceptual in nature.
- Barrick's 15-year production
profile for Nevada Gold Mines is based on the same assumptions as
the ten-year base case production profile detailed above.
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”, “invest”,
“continue”, “progress”, “develop”, “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 anticipated gold production for the fourth quarter of
2023 and our expectation of a shortfall (and the magnitude of the
expected shortfall) in 2023 annual gold production relative to
Barrick’s previously announced 2023 guidance and our five, ten and
fifteen-year production profiles 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,
annual production expectations from Reko Diq and Lumwana and
anticipated production growth from Barrick’s organic project
pipeline and reserve replacement; Barrick’s global exploration
strategy and planned exploration activities, including the expected
benefits of drill results at Nevada Gold Mines; our ability to
identify new Tier One assets and the potential for existing assets
to attain Tier One status; 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,
Fourmile, Reko Diq project, Porgera mine, Lumwana Super Pit and
growth opportunities at Nevada Gold Mines; potential mineralization
and metal or mineral recoveries; expected timing for the
feasibility study, construction and targeted first production for
the Reko Diq project; our expectations for a project financing
process for Reko Diq; the duration of the temporary suspension of
operations at Porgera, the conditions for the reopening of the
mine, including the execution of compensation agreements with local
landowners, and the timeline to recommence operations; potential
mine life of Porgera; our pipeline of high confidence projects at
or near existing operations; the potential to extend Veladero’s
life of mine; 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 timing for 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
(including our Scope 3 emissions targets and our reliance on our
value chain to help us achieve these targets within the specified
time frames), biodiversity initiatives and tailings storage
facilities management, including Barrick’s conformance with the
Global Industry Standard on Tailings Management; 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, and the environmental license for the
construction and operation of the El Naranjo tailings storage
facility for Pueblo Viejo; non-renewal of key licenses by
governmental authorities; 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 five, ten and fifteen-year production profiles 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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