Twenty years after Morila started production, the Barrick owned and
operated gold mines in Mali continue to make a major contribution
to the country’s economy and lead the growth of its mining
industry, president and chief executive Mark Bristow said here
today.
Speaking at a briefing at the mine for local
media, Bristow said while Morila was heading for closure after
producing 6.8 million ounces of gold, the Loulo-Gounkoto
complex ranked as one of the world’s top 10 Tier One1
gold mines and during the past quarter again delivered the greatest
production improvement in Barrick’s global portfolio. In
total Randgold and its successor have spent $160 million on
exploration and contributed approximately $6.5 billion to the
greater economy with taxes, royalties and dividends totaling $2.6
billion. The Company’s contribution represented approximately
6% of Mali’s GDP in 2018. Bristow noted that the Government
and Barrick’s Mali management team had made progress in resolving
outstanding tax disputes and the Company expected to conclude the
agreed mediation process soon.
At the year’s halfway mark, he said,
Loulo-Gounkoto was well on its way to achieve its 2019 production
guidance of 690 000 ounces of gold2. Continuing
brownfields exploration around its three main orebodies was
confirming the potential to replace depleted reserves, supporting
and possibly extending the complex’s 10-year plan. Barrick is
also hunting new orebodies along its 70-kilometer tenement
straddling the Mali-Senegal shear, which has produced more major
gold discoveries over the past 20 years than anywhere else in the
world.
The Loulo-Gounkoto complex currently comprises
the Yalea and Gara underground mines and the Gounkoto super pit,
with a fourth mine in the form of an underground operation at
Gounkoto at the feasibility study stage.
The installation of a 20-megawatt solar power
plant is currently under way. Bristow said this would save
the complex 10 million liters of fuel per year, reduce its carbon
footprint and provide a low-cost power source for the local
community after Loulo-Gounkoto’s eventual closure.
In other community projects, the agricultural
college established by the complex has produced its third batch of
graduates, all of whom have been placed with agribusinesses.
Nineteen schools, one for each village, have been built and
enrolment has increased to more than 5 000 against 500 when
the mine opened. Three clinics have been established in the
community and programs to fight malaria and HIV/AIDS continue to
reduce the incidence of these diseases.
To date, Loulo-Gounkoto has invested more than
$6.4 million in community development. At Morila meanwhile,
the agribusiness center designed to leave a sustainable post-mining
economy for the local community is taking its final shape.
Bristow noted that all three mines at
Loulo-Gounkoto were managed by Malian nationals. Of the
complex’s more than 4 000 employees, 95% are Malians.
“The Barrick mines have been good for Mali, not
only in terms of their contribution to the economy but also for
their world-class health, safety and environmental practices, their
substantial investment in sustainability, their support of local
suppliers and contractors, and their policy of employing and
empowering Malian citizens. For their part, Mali and its
people have been rewarding hosts and partners, and we look forward
to continuing our productive relationship with them,” he said.
Enquiries
President and chief executiveMark Bristow+1 647 205 7694+44 788 071
1386 |
Group regional manager West Africa Mahamadou Samaké +223 66 75 61
36 |
Investor & media relationsKathy du Plessis+44 20 7557
7738Email: barrick@dpapr.com |
Website: www.barrick.com
Cautionary Statement on Forward-Looking
Information
Certain information contained in this press
release, including any information as to Barrick’s strategy, 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
“continue”, “guidance”, “potential”, “possibly”, “under way”,
“would”, “eventual” and “look forward” and similar expressions
identify forward-looking statements. In particular, this press
release contains forward-looking statements including, without
limitation, with respect to: forward-looking production guidance,
within the range of published guidance of 520-570koz (80%); the
potential for multiple zones of mineralization to be extended and
combined at the Loulo-Gounkoto complex; mineral reserve and mineral
resource replacement at the Loulo-Gounkoto complex; the
installation of a solar power plant and associated fuel savings,
including with respect to the Loulo-Gounkoto complex’s carbon
footprint and future investments in community projects and disease
prevention programs.
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 Barrick 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;
diminishing quantities or grades of reserves; increased costs,
delays, suspensions, and technical challenges associated with the
construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges, and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; 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 Mali; lack of certainty with respect to foreign
legal systems, corruption, and other factors that are inconsistent
with the rule of law; risk of loss due to acts of war, terrorism,
sabotage and civil disturbances; the risks associated with
infectious diseases presenting as major health issues; timing of
receipt of, or failure to comply with, necessary permits and
approvals; failure to comply with environmental and health and
safety laws and regulations; litigation and legal and
administrative proceedings; damage to the Barrick’s reputation due
to the actual or perceived occurrence of any number of events,
including negative publicity with respect to the Barrick’s handling
of environmental matters or dealings with community groups, whether
true or not; 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; fluctuations in the currency markets; contests over
title to properties, particularly title to undeveloped properties,
or over access to water, power, and other required infrastructure;
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. 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.
Endnotes
- A Tier One Gold Asset is a mine
with a stated life in excess of 10 years with 2017 production of at
least 500,000 ounces of gold and 2017 total cash cost per ounce
within the bottom half of Wood Mackenzie’s cost curve tools
(excluding state-owned and privately-owned mines). For purposes of
determining Tier One Gold Assets, “Total cash cost” per ounce is
based on data from Wood Mackenzie as of August 31, 2018. The Wood
Mackenzie calculation of “Total cash cost” per ounce may not be
identical to the manner in which Barrick calculates comparable
measures. “Total cash cost” per ounce is a non-GAAP financial
performance measure with no standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. “Total cash cost” per ounce should not be considered
by investors as an alternative to operating profit, net profit
attributable to shareholders, or to other IFRS measures. Wood
Mackenzie is an independent third-party research and consultancy
firm that provides data for, among others, the metals and mining
industry. Wood Mackenzie does not have any affiliation to
Barrick.
- On a 100% basis.
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