With its North Mara and Bulyanhulu gold mines set to achieve a
combined production in excess of 500,000 ounces1 for the second
year running, Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) is
looking to expand its East African footprint from this base.
Speaking to media at a briefing at a local school
near to the North Mara Mine, president and chief executive Mark
Bristow said the resurrection of these moribund mines and their
transformation into an asset with the potential to be included in
Barrick’s elite Tier One2 portfolio as a combined complex was a
remarkable success story.
“Our groundbreaking Twiga partnership with the
Tanzanian government not only settled its long-running disputes
with the mines’ previous operators but has established a model for
mutually beneficial cooperation between miners and their host
countries, particularly in Africa. By demonstrating that Tanzania
is an investor-friendly destination it also augurs well for the
future of the country’s mining industry,” he said.
Both North Mara and Bulyanhulu have been ramping up
production, with North Mara hitting a record 505,000 tonnes of ore
and waste mined last quarter1. It continues to optimize the
underground operation while the change to an owner-mining strategy
has boosted the expansion of both the mine and open pit operations.
At Bulyanhulu, the development of the main declines to access the
Deep West zone of the orebody started last quarter. The production
ramp-up at both mines is being supported by fleet upgrades.
“We continue to target further growth through
reconnaissance and the consolidation of key licences. Extension
opportunities are being assessed along the Gokona strike and
throughout the Bulyanhulu Inlier. Results from the deep drilling at
Gokona are pointing to a significant potential for extending North
Mara’s life,” Bristow said.
“In addition to the brownfields exploration
designed to maintain the positive trend on resource expansion and
conversion at the two mines, we are also looking further afield. A
better understanding of the region’s geological architecture will
improve our ability to discover new world-class development
opportunities in our areas of interest.”
In line with Barrick’s localization policy,
Tanzanians make up 96% of mines’ workforces, with 45% drawn from
the communities surrounding the mines. Host country nationals
account for 58% of the senior management. During the past quarter
the mines spent $339 million with Tanzanian suppliers and service
providers. Since it took over the mines in 2019, Barrick has
contributed over $2.1 billion to the Tanzanian economy.
Barrick EnquiriesPresident and
CEOMark Bristow+1 647 205 7694+44 788 071 1386
Country manager, TanzaniaMelkiory Ngido+255 686 945
222Email: melkiory.ngido@barrick.com
Investor and media relationsKathy du Plessis+44 20
7557 7738Email: barrick@dpapr.com
Website: www.barrick.com
Endnote 1 On a 100% basis.
Endnote 2 A Tier One Gold Asset is
an asset with a reserve potential to deliver a minimum 10-year
life, annual production of at least 500,000 ounces of gold and
total cash costs per ounce over the mine life that are in the lower
half of the industry cost curve.
Cautionary Statement on Forward-Looking
InformationCertain 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 “target”, “set to achieve”,
“looking to expand”, “potential”, “future,” “continue”, “improve”,
“would”, “commit”, “advance”, “generate”, “expect”, “will”, and
similar expressions identify forward-looking statements. In
particular, this press release contains forward-looking statements
including, without limitation, with respect to: expected production
and cost levels for the North Mara and Bulyanhulu mines and their
Tier One potential as a combined complex; Barrick’s partnership
with the Government of Tanzania under the framework agreement; the
ramp-up of production at North Mara and Bulyanhulu, optimization of
production and fleet upgrades; potential mine life extensions,
resource expansion and new development opportunities identified
through drilling and other exploration activities; planned
investments by Barrick in Tanzania including to develop healthcare,
education and infrastructure; Barrick’s contributions to the local
economy, including local hiring and procurement programs and
spending as well as anticipated contributions to value-adding
national projects.
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); the
speculative nature of mineral exploration and development; changes
in mineral production performance, exploitation, and exploration
successes; risks associated with projects in the early stages of
evaluation, and for which additional engineering and other analysis
is required; failure to comply with environmental and health and
safety laws and regulations; timing of receipt of, or failure to
comply with, necessary permits and approvals; uncertainty whether
some or all of the targeted investments and projects will meet the
Company’s capital allocation objectives and internal hurdle rate;
changes in national and local government legislation, taxation,
controls or regulations and/ or changes in the administration of
laws, policies and practices, expropriation or nationalization of
property and political or economic developments in Tanzania and
other jurisdictions in which the Company or its affiliates do or
may carry on business in the future; our ability to convert
resources into reserves; increased costs, delays, suspensions and
technical challenges associated with the construction of capital
projects; risks associated with working with partners in jointly
controlled assets; 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 associated with new diseases, epidemics and
pandemics, including the effects and potential effects of the
global Covid-19 pandemic; litigation and legal and administrative
proceedings; employee relations including loss of key employees;
increased costs and physical risks, including extreme weather
events and resource shortages, related to climate change; and
availability and increased costs associated with mining inputs and
labor. Barrick also cautions that its guidance may be impacted by
the unprecedented 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.
Barrick disclaims 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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