Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today reported
increased earnings and production for its second quarter, in line
with guidance, and said the Company was on track for a strong
second half of the year.
Net earnings1 were up 25% and the attributable EBITDA margin2
was up 17% quarter on quarter to 48% with strong operating cash
flows of $1.16 billion and a material increase in free cash flow3
to $340 million. Net earnings per share were up 24% to $0.21,
adjusted net earnings per share3 increased by 68% to $0.32, and the
quarterly dividend was maintained at $0.10 per share.
President and chief executive Mark Bristow said while steering
the Company towards the achievement of its 2024 guidance,
management was also maintaining its focus on value creation and
growth.
Key projects designed to boost production and expand the asset
base include the recently permitted Goldrush mine in Nevada which
is ramping up to annual production in excess of 400,000 ounces by
20285 while the adjacent Fourmile project, 100% owned by Barrick,
is shaping up as a new Tier One6 mine with a potential gold
production in excess of 500,000 ounces per annum over more than two
decades.7 In the Dominican Republic, Pueblo Viejo is completing an
expansion project designed to increase gold production to more than
800,000 ounces beyond 2040.8
“On the copper side of the business, two world-class projects
are set to deliver into a rising price and demand market. In
Zambia, the Lumwana super pit expansion will increase the mine’s
production from 130,000 tonnes to 240,000 tonnes per annum19 while
the Reko Diq project in Pakistan is targeting 400,000 tonnes of
copper and 500,000 ounces of gold per annum20,” Bristow said.
“The strong cash flows from our operations will fund these and
other developments while our robust balance sheet will support the
forecast growth and dividends. In the meantime, Barrick’s
unparalleled ability to replace reserve depletion organically will
continue to enhance the scope and quality of our existing asset
base.”
During the past quarter Barrick launched what is believed to be
the industry’s first comprehensive biodiversity assessment tool. It
was produced in collaboration with external experts and
incorporates local knowledge and priorities to establish baselines
and identify residual impacts. The development of the tool is
another milestone in achieving Barrick’s differentiated
sustainability strategy aimed at making a tangible difference on
the ground, where it matters most.
“We are using this tool at all our sites which allows us to
quantify both positive and negative impacts on biodiversity across
our operations worldwide. This informed approach will guide
targeted actions to take our already established rehabilitation and
key biodiversity conservation initiatives to another level,”
Bristow said.
Q2 2024 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/Canada
(toll-free), 1 844 763 8274UK (toll), +44 20 3795 9972International
(toll), +1 647 484 8814
The Q2 presentation materials will be available on Barrick’s
website at www.barrick.com and the webinar will remain on the
website for later viewing.
Key Performance Indicators
Financial and Operating
Highlights
|
Financial Results |
Q2 2024 |
Q1 2024 |
Q2 2023 |
|
Realized gold price9,10 ($ per ounce) |
2,344 |
2,075 |
1,972 |
| Realized copper
price9,10 ($ per pound) |
4.53 |
3.86 |
3.70 |
| Net earnings1 ($
millions) |
370 |
295 |
305 |
| Adjusted net earnings4 ($
millions) |
557 |
333 |
336 |
| Attributable EBITDA2 ($
millions) |
1,289 |
907 |
988 |
| Net cash provided by operating
activities ($ millions) |
1,159 |
760 |
832 |
| Free cash flow3 ($
millions) |
340 |
32 |
63 |
| Net earnings per share
($) |
0.21 |
0.17 |
0.17 |
| Adjusted net earnings per
share4 ($) |
0.32 |
0.19 |
0.19 |
|
Attributable capital expenditures11,12 ($ millions) |
694 |
572 |
588 |
|
Operating Results |
Q2 2024 |
Q1 2024 |
Q2 2023 |
|
Gold |
|
|
|
| Production9 (thousands of
ounces) |
948 |
940 |
1,009 |
| Cost of sales (Barrick’s
share)9,13 ($ per ounce) |
1,441 |
1,425 |
1,323 |
| Total cash costs9,14 ($
per ounce) |
1,059 |
1,051 |
963 |
| All-in
sustaining costs9,14 ($ per ounce) |
1,498 |
1,474 |
1,355 |
|
Copper |
|
|
|
| Production9,15 (thousands
of tonnes) |
43 |
40 |
48 |
| Cost of sales (Barrick’s
share)9,16 ($ per pound) |
3.05 |
3.20 |
2.84 |
| C1 cash costs9,17 ($ per
pound) |
2.18 |
2.40 |
2.28 |
| All-in
sustaining costs9,17 ($ per pound) |
3.67 |
3.59 |
3.13 |
|
Financial Position |
As at 6/30/24 |
As at 3/31/24 |
As at 6/30/23 |
|
Debt (current and long-term) ($ millions) |
4,724 |
4,725 |
4,774 |
| Cash and equivalents ($
millions) |
4,036 |
3,942 |
4,157 |
| Debt,
net of cash ($ millions) |
688 |
783 |
617 |
Best Assets
- In line Q2 performance positions
Barrick to deliver on gold production guidance for 2024
- Net earnings1 up 25% on Q1 and
attributable EBITDA margin2 up 17% to 48%
- Higher production and lower costs
expected in H2
- Pueblo Viejo production growth and
cost improvement expected in H2 driven by recovery
optimization
- Porgera delivers successful plant
completion test; ramp-up to capacity remains on track for 2024
- Lower costs at Lumwana combined with
higher prices drive 124% increase in group’s quarterly copper
margins18
- Stronger H2 at Lumwana to drive
delivery on group copper production guidance for 2024
- Reko Diq and Lumwana feasibility
studies on track for completion by year-end
- Ten rigs now drilling extensive
definition program at Fourmile; initial results confirm modelled
extensions to mineralization, validating the geological model
- Results from disciplined
brownfields exploration on track to replace annual depletion and
identify further upside opportunities around Barrick’s operations
in North America, Latin America and Africa & Middle East
Leader in Sustainability
- 33% decrease in total recordable
injuries from Q1
- Lost Time Injury-free month for the
group in June
- Finalization of Barrick’s
Biodiversity tool to measure No Net Loss and Net Gain
- Lumwana Environmental and Social
Impact Assessment (ESIA) completed and submitted to authorities for
review
- Reko Diq ESIA on track to be
submitted in Q3
- Porgera provides humanitarian and
logistical support to communities affected by the Mulitaka
landslide
Delivering Value
- Q2 operating cash flow of $1.16
billion — up 53% on Q1 — and free cash flow3 of $340 million
- 24% increase in net
earnings per share quarter on quarter to $0.21 and 68%
increase in adjusted net earnings4 per share to $0.32
- Share buyback recommences capturing
embedded value in business and growth pipeline
- Debt, net of cash reduced by 12%
quarter on quarter
- $0.10 per share dividend
declared
BARRICK DECLARES Q2 DIVIDEND AND BUYS BACK
SHARES
Barrick today announced the declaration of a dividend of
$0.10 per share for the second quarter of 2024. The dividend is
consistent with the Company’s Performance Dividend Policy announced
at the start of 2022.
The Q2 2024 dividend will be paid on September 16, 2024 to
shareholders of record at the close of business on August 30,
2024.
In addition to the dividend, Barrick repurchased 2.95 million
shares during the second quarter under the $1 billion share buyback
program that was announced in February 2024.
“The continued strength of our balance sheet and our world-class
gold and copper asset base allow us to distribute a robust
quarterly dividend whilst maintaining ample liquidity to invest in
growing our business. Additionally, we took the opportunity to buy
back stock at a compelling valuation,” said senior executive
vice-president and chief financial officer Graham Shuttleworth.
BARRICK’S STRATEGIC FOCUS ON TIER ONE ASSETS DELIVERS
TWO HIGH-POTENTIAL PROSPECTS IN NEVADA
Barrick’s sector-leading portfolio of Tier
One6 gold mines is set to be
expanded significantly as it advances the development of the
recently permitted Goldrush mine, part of Nevada Gold Mines, and
the adjacent Fourmile project, which is 100% owned by
Barrick.
Goldrush is successfully ramping up underground production,
aiming for a more than 35% increase next year, heading to an annual
output in excess of 400,000 ounces by 2028 (100% basis).5 The
mine’s development plan incorporates drill platform access to
support future growth through conversion of the mineral resource
base, currently standing at 9.8 million ounces at 5.88g/t within
indicated with a further 4.2 million ounces at 5.4g/t in the
inferred category (100% basis).21
At Fourmile, drilling has confirmed a grade which is
consistently double that of Goldrush’s along the 2.5-kilometer
strike length of mineralization. Ten diamond core rigs are
currently on-site drilling in support of an updated mineral
resource statement at the end of the year. Prefeasibility options
are being assessed for a year-end decision on an asset that is
demonstrating the potential for annual production in excess of
500,000 ounces over more than two decades.7 Fourmile’s proximity to
the permitted Goldrush mine will facilitate its advancement.
“This is a unique two-in-one opportunity to expand Barrick’s
value foundation in Nevada,” says Mark Bristow. “It highlights the
great growth opportunities embedded in our asset base and our
ability to identify and extract the enormous value they
represent.”
GIANT COPPER PROJECT STARTS TAKING SHAPE IN
PAKISTAN
At a time when new copper opportunities are rare to
non-existent, Barrick is demonstrating the value of its long-term
growth strategy and its early decision to expand its copper
portfolio by rapidly advancing the Reko Diq project in
Pakistan.
Scheduled to deliver its first concentrate before the end of
2028, Reko Diq is one of the world’s largest undeveloped
copper-gold deposit. With an estimated life of mine of 40 years,
and with exploration targets supporting the potential to double
that, Reko Diq will not only elevate Barrick into the front rank of
copper producers, but is destined to economically transform the
Balochistan province as well as to be a major growth engine for
Pakistan.20
The Reko Diq feasibility study remains on track for completion
by the end of this year and, in the meantime, the construction of
key enabling infrastructure is underway. Long lead items are being
ordered so that work on the processing facility construction can
start immediately once the final investment approval is given.
The workforce on site is growing, and in line with Barrick’s
global policy of local recruitment, 77% of direct employees are
from Balochistan and 94% are Pakistani nationals. To build capacity
as the project grows — by the end of next year it will be employing
an estimated 2,500 people — a skills-based technical training
center has been established for young people from the area. The
first group of 60 men and 80 women has been enrolled as trainees.
At Barrick’s Veladero mine in Argentina, nine young Pakistani
graduates are being trained for leadership roles at Reko Diq.
Central to the success of the project is the establishment and
maintenance of a strong social license to operate and Reko Diq is
delivering significant social advancement programs shaped by the
community development committees it established. These include the
establishment of two local healthcare centers, in partnership with
a leading healthcare network, which provide free medical services
to the community. All four local villages now have access to
potable water and five primary schools have been opened.
BARRICK’S LEADERSHIP IN SUSTAINABLE MINING CONFIRMED BY
NEW BIODIVERSITY TOOL
In a pioneering development for sustainable mining,
Barrick has put into practice a tool designed to transform how the
Company assesses its impact on biodiversity.
This innovative step marks a significant departure from
traditional methods of qualifying impacts, empowering Barrick to
measure its biodiversity impacts, both negative and positive, with
greater accuracy and clarity.
The tool, named the Biodiversity Residual Impact Assessment tool
(BRIA), is the product of years of research and collaboration with
third-party experts. Driven by a commitment to align corporate
goals with rigorous scientific standards, BRIA goes beyond mere
estimations and guesswork, offering tangible metrics that inform
actionable conservation strategies and, in time to come, targets to
measure against.
“At Barrick, we recognize the importance of setting goals that
are not only ambitious but also grounded in scientific evidence,”
says Grant Beringer, Barrick’s sustainability executive. “This tool
allows us to quantify both positive and negative impacts on
biodiversity across our operations worldwide. This capability is an
important step in our journey towards sustainable mining.”
Central to Barrick's approach is the integration of Key
Biodiversity Features (KBFs) into its Biodiversity Standard. These
features, identified through comprehensive ecological assessments
and baselines, represent critical habitats and species that are
prioritized for conservation or rehabilitation efforts. BRIA
facilitates the development of Measurable Conservation Actions
(MCAs), making sure that every initiative is tailored to maximize
positive outcomes for biodiversity. It’s a tool that was designed
largely for Barrick’s operations but will also be used to quantify
impacts on some of its external conservation initiatives such as
the support it provides to the Garamba National Park in the
DRC.
The tool has already been trialed at two of its operations,
Carlin and Pueblo Viejo, and has quantified the positive impacts
Barrick has had in terms of its efforts on riparian habitat
restoration and conservation in both regions. The tool will elevate
the Biodiversity Action Plans (BAPs), developed by each site and
part of Barrick’s Sustainability Scorecard, by helping the sites
focus their actions on those areas that are the most important from
a habitat perspective. The tool also unlocks an opportunity to
direct its reclamation actions at its closed mines to ensure that
maximum biodiversity values at these sites are achieved.
“Our commitment to biodiversity conservation is not just a
component of our sustainability strategy; it's a fundamental part
of how we do business,” says Mark Bristow. “With BRIA we are able
to measure, monitor and mitigate our impact on biodiversity with
greater certainty, empowering us to take proactive steps towards
preserving natural ecosystems, while enhancing the resilience of
species and habitats.”
The deployment of BRIA underscores Barrick's leadership in
sustainable mining and sets a new standard for the industry. By
embracing data-driven insights and fostering partnerships with
local communities and conservation experts, Barrick aims to achieve
meaningful and lasting impacts on biodiversity conservation.
PIONEERING PROCESS CONTROL IMPROVEMENTS
Harnessing the latest technology to improve process
controls has enabled Barrick to increase throughput and advance
plans to reduce cyanide consumption.
Nevada Gold Mines’ Gold Quarry roaster — the older of the
complex’s two roasters — is being extensively upgraded in a $67
million project (on a 100% basis) designed to increase its total
throughput rate by 20%, improving cost efficiency and gold
production. The final phase of the upgrade started late in Q2 and
includes additional quench and solution cooling capacity and other
major components. The project also includes the replacement of the
sulphur dioxide converter supporting our emission controls.
At Kibali in the Democratic Republic of Congo, a cyanide
recovery plant has been commissioned in what is the mining
industry’s first full-scale application of an upflow reactor
technology, which recycles the cyanide instead of destroying it.
The plant is achieving its cyanide reduction design performance,
maintaining cyanide in the tailings to below the 50ppm target,
while delivering an above-expectation additional gold recovery of
0.85%.
In the hunt for alternative leaching agents, testwork at
Bulyanhulu in Tanzania has shown that a glycine-assisted leach in
the cyanide-in-leach circuit significantly reduces cyanide
consumption and reduces detoxification requirements. Glycine
amenability bulk and pilot tests are also being conducted at Kibali
and Loulo in Africa, as well as Nevada Gold Mines and at Veladero
in Argentina, alongside evaluation of other lixiviant products.
SHAPING THE NEXT GENERATION OF LEADERS
Reko Diq, Barrick’s mega-project in Pakistan, is still
at the infrastructure pre-construction stage but the Company is
already investing in the creation of a local skills pool from which
the future mine will draw its managers and operators.
This has started at the very beginning of the educational
process, with the establishment of five junior schools where none
had previously existed in this remote and underdeveloped part of
Balochistan and extends all the way to the Veladero mine in
Argentina, where Barrick has sent a cohort of promising young
Pakistani graduates to learn firsthand how a successful mine is
run.
“Here and throughout the global Barrick Group our goal is to
cultivate a new generation of employees by equipping them with the
tools required to address the technical, operational and managerial
challenges presented by a dynamic mining industry in a rapidly
evolving world,” says Mark Bristow.
“Barrick has the industry’s best assets and we need the best
people to extract their full value. Our policy is to employ our
host countries’ nationals and then to empower them through a
combination of theoretical and practical training, hands-on field
experience and personalized mentoring to run our world-class mines.
We demonstrated the success of this approach decades ago in Africa
where we elected to create our own skills pool rather than to rely
on expatriates, and where our Tier One mines have long been run
almost entirely by local workforces and management teams.”
The Africa & Middle East region continues to be a leading
force in talent development. The recently established Barrick
Academy at the former Buzwagi mine in Tanzania has already produced
582 graduates and is aiming to train a further 2,000 foremen and
supervisors over the next two years. Both the North America and
Latin America regions are developing similar programs as the
Barrick Academy concept is rolled out across the group.
In Nevada, a specialized training mine was established in 2022
to equip operational new hires, particularly those with no mining
experience, to work safely and efficiently. It has since graduated
more than 600 operators and is expanding its curriculum to cater to
supervisors.
Pueblo Viejo in the Dominican Republic has inaugurated a
Leadership School with a first intake of 32 employees in
partnership with the country’s National Institute of Education for
Technical Professionals. Management experts will lead a broad range
of courses designed to guide the development of future leaders
within the workforce. At Veladero in Argentina, where there is a
strong focus on increasing the proportion of female employees, 24
women from the local community have been enrolled in a new Truck
Operators Training Program which combines theoretical knowledge
with hands-on practice in the field.
“The cornerstone of Barrick’s global leadership development
framework is our executive and management programs, reserved for
high-potential performers. Since its inception in 2019, 22
employees have graduated from the executive program and 155 from
the management program. We are well placed to ensure that Barrick
will be a forward-facing, modern mining business far into the
future,” says Bristow.
EXPLORATION SUCCESS, CAPITAL INVESTMENT AND RESERVE
GROWTH TO SUSTAIN KIBALI’S PRODUCTION PROFILE
Africa’s largest gold mine, Kibali, continues to deliver
growth as its strong record of replenishing reserves and resources,
and further investment in technology and capacity, position it to
sustain its annual production of more than 700,000 ounces (on 100%
basis) past the current 10-year horizon to 15 years and
beyond.22
Speaking to local media and other stakeholders, Mark Bristow
said Kibali was not only Africa’s largest gold mine but also its
most automated and, thanks to its three hydropower stations, a
leader in renewable energy. When its back-up solar power plant and
battery storage system are commissioned next year, the renewable
component of its energy mix will increase to 85%.
“When we started building Kibali 14 years ago, this was one of
the DRC’s most underdeveloped regions. The value we created and the
infrastructure we built here have since transformed it into a new
economic frontier and a flourishing commercial hub, with a
community that has grown from 30,000 to over 500,000 people. We’ve
promoted this growth through investment in community development
and partnering with local businesses we have mentored. Our Azambi
power station, for example, was built by an all-Congolese team.
Since 2010, Kibali’s payments to local contractors and suppliers
have amounted to almost $2.7 billion,” Bristow said.
“In addition, Kibali has written a new chapter in Barrick’s long
support for Africa’s biodiversity by partnering with African Parks
and the DRC Government to re-introduce a sustainable population of
white rhino to the DRC’s Garamba National Park, which the mine also
supports in other ways. This means that, together with the Barrick
coffee project in the Haut-Uele region aimed at revitalizing the
once vibrant Robusta coffee industry which Isiro was previously
renowned for, we are not only looking after our host countries in
the present but also to their national heritage in the future.”
Bristow said Kibali was built on partnerships with its
stakeholders, notably the government and its host communities.
Based on its success, Barrick was ready to invest in new gold and
copper opportunities in the DRC, provided the government continued
to build alongside it.
BARRICK’S SUSTAINABILITY STRATEGY DELIVERS REAL VALUE TO
STAKEHOLDERS
Almost $12 billion of economic value generated by
Barrick’s mines last year remained in the countries in which it
operates, according to the Company’s 2023
Sustainability Report.
Mark Bristow says real, tangible sustainability can only be
achieved through a holistic approach aligned to the United Nation’s
Sustainable Development Goals. Barrick’s conformance with ESG
standards is a natural by-product of its sustainable business
philosophy and not its driver.
“Barrick’s distinctive approach to sustainability has evolved
over many years, guided by the operational experience gained at its
worldwide operations, the partnership philosophy at the heart of
its business and the Company’s belief that all stakeholders should
benefit from the value it creates,” he says. In 2023, 97% of its
employees were host country nationals and $43 million has been
invested by the Company’s pioneering Community Development
Committees (CDCs) in education, healthcare, food security, the
environment, infrastructure and local economic development. Further
details of Barrick’s economic value contribution, including taxes
paid, is included in its standalone Tax Contribution Report for
2023.
On the safety front, there was a 21% year-on-year improvement in
Barrick’s Lost Time Injury Frequency Rate23 with total injuries
reducing from 2022. The Company also recorded its lowest malaria
incidence rate, a 33% year-on-year decrease from 17.86% in 2022 to
11.35% in 2023. “Our safety performance has been given additional
focused attention with the establishment of new group-wide safety
protocols to drive fatal risks down and achieve the zero target we
have set ourselves,” Bristow says.
Also in 2023, Barrick achieved the target it set for itself for
2025 of reducing its greenhouse gas emissions by 15%. Its Scope 1
and 2 greenhouse gas emissions have now been reduced by 16% against
its 2018 baseline. Barrick will continue to reduce these emissions,
with the long-term goal to be Net Zero by 2050. At the same time,
it remains on track to achieve its Scope 3 emissions reduction
targets which were set in consultation with its suppliers and
service providers. Barrick also re-used or recycled 84% of the
water it used in its operations, with an 85% recycle rate achieved
at its water-stressed sites. Further sustainability metrics,
detailed by site, region and at a company level, can be found in
the GRI sheet.
Barrick is also targeting no net loss on any Key Biodiversity
Features (KBFs) identified at its sites and is contributing
positively to the conservation of high-risk biodiversity features.
“This is best illustrated by the successful, and ongoing,
reintroduction of white rhinos to the Garamba National Park in the
Democratic Republic of Congo. Today, these rhinos are safely
roaming a park previously considered lost to poachers and nomad
herders. Its restoration means that the surrounding communities can
look forward to a secure future and one that holds the promise of
eco-tourism’s economic awards,” says Bristow.
Barrick’s fourth annual Sustainability Update webinar was held
earlier this month. Visit our website to download the presentation
and replay the event.
PORGERA REMAINS ON TRACK DESPITE MULITAKA LANDSLIDE
CHALLENGES
Despite the operational challenges presented by the
recent Mulitaka landslide, Porgera Gold Mine has met or exceeded
its targets since resuming mining in December last year, with gold
production and performance on all-in sustaining
costs14 for the first half of the
year setting the mine up to achieve full year
guidance.
Mark Bristow, who was in the country to review New Porgera
Limited’s (NPL) second quarter results, said keeping Porgera open
in the wake of the landslide allowed for a swift response by the
mine to the collective recovery effort while sustaining the mine’s
contribution to the provincial and national economies.
“Reacting rapidly to the disaster, our teams put into operation
an air bridge and a temporary pipe across the slip to be able to
supply fuel and essential goods not only to the mine but to local
businesses serving the tens of thousands of residents of the
Porgera valley. The cooperation of the Mulitaka community is
essential to keeping these lifelines open until the permanent
bypass road can be completed,” Bristow said, expressing his deepest
sympathies to the families and friends of victims of the landslide
and reaffirming NPL’s commitment to impacted communities.
“Porgera employees have been on the ground in Mulitaka daily and
are embedded at the Enga Provincial Government’s disaster relief
center in Wabag to assist with all aspects of the rehabilitation
effort. These include the delivery of essential goods and fuel
while contributing geotechnical expertise to assist with ground
stabilization and the design of the new bypass road. Barrick and
JV-partner Zijin also jointly contributed $1 million towards relief
efforts, approximately half of which has already been
deployed.”
During his visit, Bristow met with Prime Minister James Marape,
Enga Governor Sir Peter Ipatas and Provincial Administrator Sandis
Tsaka to exchange views on the Mulitaka recovery, the New Porgera
Community Development Agreement (CDA) negotiations, and other
issues of common interest. It was agreed that the CDA must be
consistent with the New Porgera project agreements and ensure that
fair and equitable benefits reach all eligible landowners and the
wider Porgeran community, as well as provincial and national
stakeholders.
“NPL stands ready to pay benefits directly to landowner
households, without going through middlemen, once the CDA is
executed. The mine would make additional infrastructure
contributions to the project footprint area through effective use
of the tax credit scheme in collaboration with local and provincial
authorities,” Bristow said.
NPL currently employs 2,500 people, of whom 57% are from Porgera
and Enga, 40% from the rest of Papua New Guinea and 3% expatriates.
First gold, following the resumption of operations at the mine, was
poured in January, electricity from the Hides power plant in Hela
Province was restored in April and a throughput performance test
agreed to with Papua New Guinea was achieved in June, four months
ahead of schedule.
Bristow singled out the lack of law and order as the greatest
threat to the continued operation and profitability of the mine,
requiring the active support of all stakeholders to ensure that
Porgera could continue to deliver benefits in line with its
potential as a Tier One asset.
2024 Operating and Capital Expenditure
Guidance
|
GOLD PRODUCTION AND COSTS |
|
|
2024 forecast attributable production (000s oz) |
2024 forecast cost of sales13 ($/oz) |
2024 forecast total cash costs14 ($/oz) |
2024 forecast all-in sustaining costs14 ($/oz) |
|
Carlin (61.5%) |
800 - 880 |
1,270 - 1,370 |
1,030 - 1,110 |
1,430 - 1,530 |
|
Cortez (61.5%)24 |
380 - 420 |
1,460 - 1,560 |
1,040 - 1,120 |
1,390 - 1,490 |
|
Turquoise Ridge (61.5%) |
330 - 360 |
1,230 - 1,330 |
850 - 930 |
1,090 - 1,190 |
|
Phoenix (61.5%) |
120 - 140 |
1,640 - 1,740 |
810 - 890 |
1,100 - 1,200 |
|
Nevada Gold Mines (61.5%) |
1,650 - 1,800 |
1,340 - 1,440 |
980 - 1,060 |
1,350 - 1,450 |
|
Hemlo |
140 - 160 |
1,470 - 1,570 |
1,210 - 1,290 |
1,600 - 1,700 |
|
North America |
1,750 - 1,950 |
1,350 - 1,450 |
1,000 - 1,080 |
1,370 - 1,470 |
| |
|
|
|
|
|
Pueblo Viejo (60%) |
420 - 490 |
1,340 - 1,440 |
830 - 910 |
1,100 - 1,200 |
|
Veladero (50%) |
210 - 240 |
1,340 - 1,440 |
1,010 - 1,090 |
1,490 - 1,590 |
|
Porgera (24.5%)25 |
50 - 70 |
1,670 - 1,770 |
1,220 - 1,300 |
1,900 - 2,000 |
|
Latin America & Asia Pacific |
700 - 800 |
1,370 - 1,470 |
920 - 1,000 |
1,290 - 1,390 |
| |
|
|
|
|
|
Loulo-Gounkoto (80%) |
510 - 560 |
1,190 - 1,290 |
780 - 860 |
1,150 - 1,250 |
|
Kibali (45%) |
320 - 360 |
1,140 - 1,240 |
740 - 820 |
950 - 1,050 |
|
North Mara (84%) |
230 - 260 |
1,250 - 1,350 |
970 - 1,050 |
1,270 - 1,370 |
|
Bulyanhulu (84%) |
160 - 190 |
1,370 - 1,470 |
990 - 1,070 |
1,380 - 1,480 |
|
Tongon (89.7%) |
160 - 190 |
1,520 - 1,620 |
1,200 - 1,280 |
1,440 - 1,540 |
|
Africa & Middle East |
1,400 - 1,550 |
1,250 - 1,350 |
880 - 960 |
1,180 - 1,280 |
|
|
|
|
|
|
|
Total Attributable to
Barrick26,27,28 |
3,900 - 4,300 |
1,320 - 1,420 |
940 - 1,020 |
1,320 - 1,420 |
| |
|
|
|
|
|
COPPER PRODUCTION AND COSTS |
|
|
2024 forecast attributable production (000s tonnes)15 |
2024 forecast cost of sales16 ($/lb) |
2024 forecast C1 cash costs17 ($/lb) |
2024 forecast all-in sustaining costs17 ($/lb) |
|
Lumwana |
120 - 140 |
2.50 - 2.80 |
1.85 - 2.15 |
3.30 - 3.60 |
|
Zaldívar (50%) |
35 - 40 |
3.70 - 4.00 |
2.80 - 3.10 |
3.40 - 3.70 |
|
Jabal Sayid (50%) |
25 - 30 |
1.75 - 2.05 |
1.40 - 1.70 |
1.70 - 2.00 |
|
Total Attributable to
Barrick28 |
180 - 210 |
2.65 - 2.95 |
2.00 - 2.30 |
3.10 - 3.40 |
| |
|
|
|
|
|
ATTRIBUTABLE CAPITAL
EXPENDITURES12 |
|
|
|
|
|
($ millions) |
|
|
|
|
Attributable minesite sustaining11,12 |
1,550 - 1,750 |
|
|
|
|
Attributable project11,12 |
950 - 1,150 |
|
|
|
|
Total attributable capital
expenditures12 |
2,500 - 2,900 |
|
|
|
| |
|
|
|
|
2024 OUTLOOK ASSUMPTIONS AND ECONOMIC
SENSITIVITY ANALYSIS
|
|
2024 guidance assumption |
Hypothetical change |
Impact on EBITDA2 (millions) |
Impact on TCC and AISC14,17 |
|
Gold price sensitivity |
$1,900/oz |
+/- $100/oz |
+/- $550 |
+/- $5/oz |
| Copper
price sensitivity |
$3.50/lb |
+/- $0.25/lb |
+/- $110 |
+/- $0.01/lb |
Production and Cost Summary - Gold
| |
For the three months ended |
|
|
6/30/24 |
3/31/24 |
% Change |
6/30/23 |
% Change |
|
Nevada Gold Mines LLC
(61.5%)a |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
401 |
420 |
(5 |
)% |
458 |
(12 |
)% |
|
Gold produced (000s oz 100% basis) |
653 |
683 |
(5 |
)% |
744 |
(12 |
)% |
|
Cost of sales ($/oz) |
1,464 |
1,431 |
2 |
% |
1,357 |
8 |
% |
|
Total cash costs ($/oz)b |
1,104 |
1,081 |
2 |
% |
1,009 |
9 |
% |
|
All-in sustaining costs ($/oz)b |
1,636 |
1,536 |
7 |
% |
1,388 |
18 |
% |
|
Carlin (61.5%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
202 |
205 |
(1 |
)% |
248 |
(19 |
)% |
|
Gold produced (000s oz 100% basis) |
327 |
334 |
(1 |
)% |
403 |
(19 |
)% |
|
Cost of sales ($/oz) |
1,390 |
1,371 |
1 |
% |
1,240 |
12 |
% |
|
Total cash costs ($/oz)b |
1,145 |
1,127 |
2 |
% |
1,013 |
13 |
% |
|
All-in sustaining costs ($/oz)b |
1,805 |
1,687 |
7 |
% |
1,407 |
28 |
% |
|
Cortez (61.5%)c |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
102 |
119 |
(14 |
)% |
110 |
(7 |
)% |
|
Gold produced (000s oz 100% basis) |
166 |
194 |
(14 |
)% |
178 |
(7 |
)% |
|
Cost of sales ($/oz) |
1,366 |
1,329 |
3 |
% |
1,346 |
1 |
% |
|
Total cash costs ($/oz)b |
1,013 |
946 |
7 |
% |
972 |
4 |
% |
|
All-in sustaining costs ($/oz)b |
1,447 |
1,341 |
8 |
% |
1,453 |
0 |
% |
|
Turquoise Ridge (61.5%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
72 |
62 |
16 |
% |
68 |
6 |
% |
|
Gold produced (000s oz 100% basis) |
118 |
101 |
16 |
% |
112 |
6 |
% |
|
Cost of sales ($/oz) |
1,603 |
1,733 |
(8 |
)% |
1,466 |
9 |
% |
|
Total cash costs ($/oz)b |
1,235 |
1,359 |
(9 |
)% |
1,088 |
14 |
% |
|
All-in sustaining costs ($/oz)b |
1,505 |
1,655 |
(9 |
)% |
1,302 |
16 |
% |
|
Phoenix (61.5%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
25 |
34 |
(26 |
)% |
29 |
(14 |
)% |
|
Gold produced (000s oz 100% basis) |
42 |
54 |
(26 |
)% |
46 |
(14 |
)% |
|
Cost of sales ($/oz) |
2,018 |
1,595 |
27 |
% |
2,075 |
(3 |
)% |
|
Total cash costs ($/oz)b |
781 |
767 |
2 |
% |
948 |
(18 |
)% |
|
All-in sustaining costs ($/oz)b |
1,167 |
944 |
24 |
% |
1,132 |
3 |
% |
|
Long Canyon (61.5%)d |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
— |
— |
— |
% |
3 |
(100 |
)% |
|
Gold produced (000s oz 100% basis) |
— |
— |
— |
% |
5 |
(100 |
)% |
|
Cost of sales ($/oz) |
— |
— |
— |
% |
1,640 |
(100 |
)% |
|
Total cash costs ($/oz)b |
— |
— |
— |
% |
637 |
(100 |
)% |
|
All-in sustaining costs ($/oz)b |
— |
— |
— |
% |
677 |
(100 |
)% |
|
Pueblo Viejo (60%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
80 |
81 |
(1 |
)% |
77 |
4 |
% |
|
Gold produced (000s oz 100% basis) |
133 |
134 |
(1 |
)% |
128 |
4 |
% |
|
Cost of sales ($/oz) |
1,630 |
1,527 |
7 |
% |
1,344 |
21 |
% |
|
Total cash costs ($/oz)b |
1,024 |
1,013 |
1 |
% |
840 |
22 |
% |
|
All-in sustaining costs ($/oz)b |
1,433 |
1,334 |
7 |
% |
1,219 |
18 |
% |
|
Loulo-Gounkoto (80%) |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
137 |
141 |
(3 |
)% |
141 |
(3 |
)% |
|
Gold produced (000s oz 100% basis) |
172 |
176 |
(3 |
)% |
176 |
(3 |
)% |
|
Cost of sales ($/oz) |
1,160 |
1,177 |
(1 |
)% |
1,150 |
1 |
% |
|
Total cash costs ($/oz)b |
795 |
794 |
0 |
% |
801 |
(1 |
)% |
|
All-in sustaining costs ($/oz)b |
1,251 |
1,092 |
15 |
% |
1,245 |
0 |
% |
|
Kibali (45%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
82 |
76 |
8 |
% |
87 |
(6 |
)% |
|
Gold produced (000s oz 100% basis) |
182 |
168 |
8 |
% |
195 |
(6 |
)% |
|
Cost of sales ($/oz) |
1,313 |
1,200 |
9 |
% |
1,269 |
3 |
% |
|
Total cash costs ($/oz)b |
868 |
802 |
8 |
% |
797 |
9 |
% |
|
All-in sustaining costs ($/oz)b |
1,086 |
1,048 |
4 |
% |
955 |
14 |
% |
|
Veladero (50%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
56 |
57 |
(2 |
)% |
54 |
4 |
% |
|
Gold produced (000s oz 100% basis) |
112 |
115 |
(2 |
)% |
108 |
4 |
% |
|
Cost of sales ($/oz) |
1,298 |
1,322 |
(2 |
)% |
1,424 |
(9 |
)% |
|
Total cash costs ($/oz)b |
931 |
961 |
(3 |
)% |
999 |
(7 |
)% |
|
All-in sustaining costs ($/oz)b |
1,308 |
1,664 |
(21 |
)% |
1,599 |
(18 |
)% |
|
Porgera (24.5%)e |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
11 |
4 |
175 |
% |
— |
— |
% |
|
Gold produced (000s oz 100% basis) |
49 |
14 |
175 |
% |
— |
— |
% |
|
Cost of sales ($/oz) |
1,132 |
— |
— |
% |
— |
— |
% |
|
Total cash costs ($/oz)b |
941 |
— |
— |
% |
— |
— |
% |
|
All-in sustaining costs ($/oz)b |
1,079 |
— |
— |
% |
— |
— |
% |
|
Tongon (89.7%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
45 |
36 |
25 |
% |
44 |
2 |
% |
|
Gold produced (000s oz 100% basis) |
50 |
40 |
25 |
% |
49 |
2 |
% |
|
Cost of sales ($/oz) |
1,960 |
1,887 |
4 |
% |
1,514 |
29 |
% |
|
Total cash costs ($/oz)b |
1,716 |
1,630 |
5 |
% |
1,380 |
24 |
% |
|
All-in sustaining costs ($/oz)b |
1,899 |
1,773 |
7 |
% |
1,465 |
30 |
% |
|
Hemlo |
|
|
|
|
|
|
|
|
Gold produced (000s oz) |
37 |
37 |
0 |
% |
35 |
6 |
% |
|
Cost of sales ($/oz) |
1,663 |
1,715 |
(3 |
)% |
1,562 |
6 |
% |
|
Total cash costs ($/oz)b |
1,395 |
1,476 |
(5 |
)% |
1,356 |
3 |
% |
|
All-in sustaining costs ($/oz)b |
1,660 |
1,754 |
(5 |
)% |
1,634 |
2 |
% |
|
North Mara (84%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
54 |
46 |
17 |
% |
64 |
(16 |
)% |
|
Gold produced (000s oz 100% basis) |
63 |
55 |
17 |
% |
77 |
(16 |
)% |
|
Cost of sales ($/oz) |
1,570 |
1,678 |
(6 |
)% |
1,208 |
30 |
% |
|
Total cash costs ($/oz)b |
1,266 |
1,339 |
(5 |
)% |
942 |
34 |
% |
|
All-in sustaining costs ($/oz)b |
1,491 |
1,753 |
(15 |
)% |
1,355 |
10 |
% |
|
Bulyanhulu (84%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
45 |
42 |
7 |
% |
49 |
(8 |
)% |
|
Gold produced (000s oz 100% basis) |
53 |
50 |
7 |
% |
58 |
(8 |
)% |
|
Cost of sales ($/oz) |
1,438 |
1,479 |
(3 |
)% |
1,231 |
17 |
% |
|
Total cash costs ($/oz)b |
985 |
1,044 |
(6 |
)% |
850 |
16 |
% |
|
All-in sustaining costs ($/oz)b |
1,243 |
1,485 |
(16 |
)% |
1,105 |
12 |
% |
|
Total Attributable to
Barrickf |
|
|
|
|
|
|
|
|
Gold produced (000s oz) |
948 |
940 |
1 |
% |
1,009 |
(6 |
)% |
|
Cost of sales ($/oz)g |
1,441 |
1,425 |
1 |
% |
1,323 |
9 |
% |
|
Total cash costs ($/oz)b |
1,059 |
1,051 |
1 |
% |
963 |
10 |
% |
|
All-in sustaining costs ($/oz)b |
1,498 |
1,474 |
2 |
% |
1,355 |
11 |
% |
- These results
represent our 61.5% interest in Carlin, Cortez, Turquoise Ridge,
Phoenix and Long Canyon until it transitioned to care and
maintenance at the end of 2023, as previously reported.
- Further
information on these non-GAAP financial performance measures,
including detailed reconciliations, is included in the endnotes to
this press release.
- Includes
Goldrush.
- Starting in the
first quarter of 2024, we have ceased to include production or
non-GAAP cost metrics for Long Canyon as it was placed on care and
maintenance at the end of 2023, as previously reported.
- As Porgera was
placed on care and maintenance from April 25, 2020 until December
22, 2023, no operating data or per ounce data has been provided
from the third quarter of 2020 to the fourth quarter of 2023. On
December 22, 2023, we completed the Commencement Agreement,
pursuant to which the PNG government and BNL, the 95% owner and
operator of the Porgera joint venture, agreed on a partnership for
the future ownership and operation of the mine. Ownership of
Porgera is now held in a new joint venture owned 51% by PNG
stakeholders and 49% by a Barrick affiliate, PJL. PJL is jointly
owned on a 50/50 basis by Barrick and Zijin Mining Group and
therefore Barrick now holds a 24.5% ownership interest in the
Porgera joint venture. Barrick holds a 23.5% interest in the
economic benefits of the mine under the economic benefit sharing
arrangement agreed with the PNG government whereby Barrick and
Zijin Mining Group together share 47% of the overall economic
benefits derived from the mine accumulated over time, and the PNG
stakeholders share the remaining 53%. In the first quarter of 2024,
Porgera had gold production but did not have any gold sales.
- Excludes
Pierina, which was producing incidental ounces until December 31,
2023 while in closure. It also excludes Long Canyon which is
producing residual ounces from the leach pad while in care and
maintenance.
- Gold cost of sales per ounce is calculated as cost of sales
across our gold operations (excluding sites in closure or care and
maintenance) divided by ounces sold (both on an attributable basis
using Barrick's ownership share).
Production and Cost Summary -
Copper
| |
For the three months ended |
| |
6/30/24 |
3/31/24 |
% Change |
6/30/23 |
% Change |
|
Lumwana |
|
|
|
|
|
|
Copper production (thousands of tonnes)a |
25 |
22 |
14 |
% |
30 |
(17 |
)% |
|
Cost of sales ($/lb) |
3.15 |
3.41 |
(8 |
)% |
2.80 |
13 |
% |
|
C1 cash costs ($/lb)b |
2.14 |
2.52 |
(15 |
)% |
2.30 |
(7 |
)% |
|
All-in sustaining costs ($/lb)b |
4.36 |
4.33 |
1 |
% |
3.29 |
33 |
% |
|
Zaldívar
(50%) |
|
|
|
|
|
|
Copper production (thousands of tonnes attributable basis)a |
10 |
9 |
11 |
% |
10 |
0 |
% |
|
Copper production (thousands of tonnes 100% basis)a |
19 |
19 |
11 |
% |
20 |
0 |
% |
|
Cost of sales ($/lb) |
4.13 |
3.97 |
4 |
% |
3.89 |
6 |
% |
|
C1 cash costs ($/lb)b |
3.12 |
2.95 |
6 |
% |
3.02 |
3 |
% |
|
All-in sustaining costs ($/lb)b |
3.55 |
3.27 |
9 |
% |
3.73 |
(5 |
)% |
|
Jabal Sayid (50%) |
|
|
|
|
|
|
Copper production (thousands of tonnes attributable basis)a |
8 |
9 |
(11 |
)% |
8 |
0 |
% |
|
Copper production (thousands of tonnes 100% basis)a |
16 |
17 |
(11 |
)% |
16 |
0 |
% |
|
Cost of sales ($/lb) |
1.67 |
1.61 |
4 |
% |
1.61 |
4 |
% |
|
C1 cash costs ($/lb)b |
1.34 |
1.35 |
(1 |
)% |
1.26 |
6 |
% |
|
All-in sustaining costs ($/lb)b |
1.53 |
1.55 |
(1 |
)% |
1.42 |
8 |
% |
|
Total Attributable to Barrick |
|
|
|
|
|
|
Copper production (thousands of tonnes)a |
43 |
40 |
8 |
% |
48 |
(10 |
)% |
|
Cost of sales ($/lb)c |
3.05 |
3.20 |
(5 |
)% |
2.84 |
7 |
% |
|
C1 cash costs ($/lb)b |
2.18 |
2.40 |
(9 |
)% |
2.28 |
(4 |
)% |
|
All-in sustaining costs ($/lb)b |
3.67 |
3.59 |
2 |
% |
3.13 |
17 |
% |
- Starting in 2024, we have presented
our copper production and sales quantities in tonnes rather than
pounds (1 tonne is equivalent to 2,204.6 pounds). Production and
sales amounts for prior periods have been restated for comparative
purposes. Our copper cost metrics are still reported on a per pound
basis.
- Further information on these non-GAAP financial performance
measures, including detailed reconciliations, is included in the
endnotes to this press release.
- Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share).
Financial and Operating Highlights
|
|
For the three months ended |
|
|
For the six months ended |
|
|
|
6/30/24 |
|
3/31/24 |
|
% Change |
|
|
6/30/23 |
|
% Change |
|
|
6/30/24 |
|
6/30/23 |
|
% Change |
|
|
Financial Results ($ millions) |
|
|
|
|
|
|
|
|
|
|
| Revenues |
3,162 |
|
2,747 |
|
15 |
% |
|
2,833 |
|
12 |
% |
|
5,909 |
|
5,476 |
|
8 |
% |
| Cost of sales |
1,979 |
|
1,936 |
|
2 |
% |
|
1,937 |
|
2 |
% |
|
3,915 |
|
3,878 |
|
1 |
% |
| Net earningsa |
370 |
|
295 |
|
25 |
% |
|
305 |
|
21 |
% |
|
665 |
|
425 |
|
56 |
% |
| Adjusted net earningsb |
557 |
|
333 |
|
67 |
% |
|
336 |
|
66 |
% |
|
890 |
|
583 |
|
53 |
% |
| Attributable EBITDAb |
1,289 |
|
907 |
|
42 |
% |
|
988 |
|
30 |
% |
|
2,196 |
|
1,839 |
|
19 |
% |
| Attributable EBITDA
marginb |
48 |
% |
41 |
% |
17 |
% |
|
42 |
% |
14 |
% |
|
45 |
% |
41 |
% |
10 |
% |
| Minesite sustaining capital
expendituresb,c |
631 |
|
550 |
|
15 |
% |
|
524 |
|
20 |
% |
|
1,181 |
|
978 |
|
21 |
% |
| Project capital
expendituresb,c |
176 |
|
165 |
|
7 |
% |
|
238 |
|
(26 |
)% |
|
341 |
|
464 |
|
(27 |
)% |
| Total consolidated capital
expendituresc,d |
819 |
|
728 |
|
13 |
% |
|
769 |
|
7 |
% |
|
1,547 |
|
1,457 |
|
6 |
% |
| Net cash provided by operating
activities |
1,159 |
|
760 |
|
53 |
% |
|
832 |
|
39 |
% |
|
1,919 |
|
1,608 |
|
19 |
% |
| Net cash provided by operating
activities margine |
37 |
% |
28 |
% |
32 |
% |
|
29 |
% |
28 |
% |
|
32 |
% |
29 |
% |
10 |
% |
| Free cash flowb |
340 |
|
32 |
|
963 |
% |
|
63 |
|
440 |
% |
|
372 |
|
151 |
|
146 |
% |
| Net earnings per share (basic and
diluted) |
0.21 |
|
0.17 |
|
24 |
% |
|
0.17 |
|
24 |
% |
|
0.38 |
|
0.24 |
|
58 |
% |
| Adjusted net earnings
(basic)bper share |
0.32 |
|
0.19 |
|
68 |
% |
|
0.19 |
|
68 |
% |
|
0.51 |
|
0.33 |
|
55 |
% |
|
Weighted average diluted common shares (millions of shares) |
1,755 |
|
1,756 |
|
0 |
% |
|
1,755 |
|
0 |
% |
|
1,755 |
|
1,775 |
|
(1 |
)% |
|
Operating Results |
|
|
|
|
|
|
|
|
|
|
| Gold production (thousands of
ounces)f |
948 |
|
940 |
|
1 |
% |
|
1,009 |
|
(6 |
)% |
|
1,888 |
|
1,961 |
|
(4 |
)% |
| Gold sold (thousands of
ounces)f |
956 |
|
910 |
|
5 |
% |
|
1,001 |
|
(4 |
)% |
|
1,866 |
|
1,955 |
|
(5 |
)% |
| Market gold price ($/oz) |
2,338 |
|
2,070 |
|
13 |
% |
|
1,976 |
|
18 |
% |
|
2,203 |
|
1,932 |
|
14 |
% |
| Realized gold priceb,f($/oz) |
2,344 |
|
2,075 |
|
13 |
% |
|
1,972 |
|
19 |
% |
|
2,213 |
|
1,938 |
|
14 |
% |
| Gold cost of sales (Barrick’s
share)f,g($/oz) |
1,441 |
|
1,425 |
|
1 |
% |
|
1,323 |
|
9 |
% |
|
1,433 |
|
1,350 |
|
6 |
% |
| Gold total cash
costsb,f($/oz) |
1,059 |
|
1,051 |
|
1 |
% |
|
963 |
|
10 |
% |
|
1,055 |
|
974 |
|
8 |
% |
| Gold all-in sustaining
costsb,f($/oz) |
1,498 |
|
1,474 |
|
2 |
% |
|
1,355 |
|
11 |
% |
|
1,489 |
|
1,362 |
|
9 |
% |
| Copper production (thousands
of tonnes)f,h |
43 |
|
40 |
|
8 |
% |
|
48 |
|
(10 |
)% |
|
83 |
|
88 |
|
(6 |
)% |
| Copper sold (thousands of
tonnes)f,h |
42 |
|
39 |
|
8 |
% |
|
46 |
|
(9 |
)% |
|
81 |
|
86 |
|
(6 |
)% |
| Market copper price ($/lb) |
4.42 |
|
3.83 |
|
15 |
% |
|
3.84 |
|
15 |
% |
|
4.12 |
|
3.95 |
|
4 |
% |
| Realized copper
priceb,f($/lb) |
4.53 |
|
3.86 |
|
17 |
% |
|
3.70 |
|
22 |
% |
|
4.21 |
|
3.93 |
|
7 |
% |
| Copper cost of sales (Barrick’s
share)f,i($/lb) |
3.05 |
|
3.20 |
|
(5 |
)% |
|
2.84 |
|
7 |
% |
|
3.12 |
|
3.02 |
|
3 |
% |
| Copper C1 cash
costsb,f($/lb) |
2.18 |
|
2.40 |
|
(9 |
)% |
|
2.28 |
|
(4 |
)% |
|
2.28 |
|
2.48 |
|
(8 |
)% |
| Copper all-in sustaining
costsb,f($/lb) |
3.67 |
|
3.59 |
|
2 |
% |
|
3.13 |
|
17 |
% |
|
3.64 |
|
3.26 |
|
12 |
% |
|
|
As at 6/30/24 |
|
As at3/31/24 |
|
% Change |
|
|
As at 6/30/23 |
|
% Change |
|
|
|
|
|
|
Financial Position ($ millions) |
|
|
|
|
|
|
|
|
|
|
| Debt (current and long-term) |
4,724 |
|
4,725 |
|
0 |
% |
|
4,774 |
|
(1 |
)% |
|
|
|
|
| Cash and equivalents |
4,036 |
|
3,942 |
|
2 |
% |
|
4,157 |
|
(3 |
)% |
|
|
|
|
|
Debt, net of cash |
688 |
|
783 |
|
(12 |
)% |
|
617 |
|
12 |
% |
|
|
|
|
- Net earnings represents net earnings attributable to the equity
holders of the Company.
- Further information on these non-GAAP financial performance
measures, including detailed reconciliations, is included in the
endnotes to this press release.
- Amounts presented on a consolidated
cash basis. Project capital expenditures are included in our
calculation of all-in costs, but not included in our calculation of
all-in sustaining costs.
- Total consolidated capital expenditures also includes
capitalized interest of $12 million and $25 million, respectively,
for the three and six month periods ended June 30, 2024
(March 31, 2024: $13 million and June 30, 2023: $7
million and $15 million, respectively).
- Represents net cash provided by
operating activities divided by revenue.
- On an attributable basis.
- Gold cost of sales per ounce is
calculated as cost of sales across our gold operations (excluding
sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using Barrick's ownership
share).
- Starting in 2024, we have presented
our copper production and sales quantities in tonnes rather than
pounds (1 tonne is equivalent to 2,204.6 pounds). Production and
sales amounts for prior periods have been restated for comparative
purposes. Our copper cost metrics are still reported on a per pound
basis.
- Copper cost of sales per pound is
calculated as cost of sales across our copper operations divided by
pounds sold (both on an attributable basis using Barrick's
ownership share).
Consolidated Statements of Income
| Barrick
Gold Corporation(in millions of United States dollars, except per
share data) (Unaudited) |
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Revenue (notes 4 and 5) |
$3,162 |
|
$2,833 |
|
$5,909 |
|
$5,476 |
|
|
Costs and expenses (income) |
|
|
|
|
| Cost of sales (notes 4 and
6) |
|
1,979 |
|
|
1,937 |
|
|
3,915 |
|
|
3,878 |
|
| General and administrative
expenses |
|
32 |
|
|
28 |
|
|
60 |
|
|
67 |
|
| Exploration, evaluation and
project expenses |
|
97 |
|
|
101 |
|
|
192 |
|
|
172 |
|
| Impairment charges (note 8b) |
|
1 |
|
|
22 |
|
|
18 |
|
|
23 |
|
| Loss (gain) on currency
translation |
|
5 |
|
|
(12 |
) |
|
17 |
|
|
26 |
|
| Closed mine rehabilitation |
|
(9 |
) |
|
(13 |
) |
|
(11 |
) |
|
9 |
|
| Income from equity investees
(note 11) |
|
(115 |
) |
|
(58 |
) |
|
(163 |
) |
|
(111 |
) |
|
Other expense (note 8a) |
|
80 |
|
|
18 |
|
|
97 |
|
|
70 |
|
|
Income before finance costs and income taxes |
$1,092 |
|
$810 |
|
$1,784 |
|
$1,342 |
|
|
Finance costs, net |
|
(51 |
) |
|
(44 |
) |
|
(82 |
) |
|
(102 |
) |
|
Income before income taxes |
$1,041 |
|
$766 |
|
$1,702 |
|
$1,240 |
|
|
Income tax expense (note 9) |
|
(407 |
) |
|
(264 |
) |
|
(581 |
) |
|
(469 |
) |
|
Net income |
$634 |
|
$502 |
|
$1,121 |
|
$771 |
|
|
Attributable to: |
|
|
|
|
| Equity holders of Barrick Gold
Corporation |
$370 |
|
$305 |
|
$665 |
|
$425 |
|
|
Non-controlling interests (note 14) |
$264 |
|
$197 |
|
$456 |
|
$346 |
|
|
|
|
|
|
|
| Earnings per share
data attributable to the equity holders of Barrick Gold Corporation
(note 7) |
|
|
|
|
| Net income |
|
|
|
|
|
Basic |
$ |
0.21 |
|
$ |
0.17 |
|
$ |
0.38 |
|
$ |
0.24 |
|
|
Diluted |
$ |
0.21 |
|
$ |
0.17 |
|
$ |
0.38 |
|
$ |
0.24 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2024
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 endedJune 30, |
|
Six months endedJune 30, |
|
|
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
| Net
income |
$634 |
$502 |
|
$1,121 |
$771 |
|
| Other comprehensive
income (loss), net of taxes |
|
|
|
|
| Items that may be
reclassified subsequently to profit or loss: |
|
|
|
|
| Unrealized gains on derivatives
designated as cash flow hedges, net of tax $nil, $nil, $nil and
$nil |
|
— |
|
— |
|
|
1 |
|
— |
|
| Currency translation adjustments,
net of tax $nil, $nil, $nil and $nil |
|
— |
|
— |
|
|
— |
|
(3 |
) |
| Items that will not be
reclassified to profit or loss: |
|
|
|
|
| Net change on equity investments,
net of tax $1, $(1), $1 and $(1) |
|
8 |
|
(5 |
) |
|
9 |
|
(5 |
) |
|
Total other comprehensive income (loss) |
|
8 |
|
(5 |
) |
|
10 |
|
(8 |
) |
|
Total comprehensive income |
$642 |
$497 |
|
$1,131 |
$763 |
|
|
Attributable to: |
|
|
|
|
| Equity holders of Barrick Gold
Corporation |
$378 |
$300 |
|
$675 |
$417 |
|
|
Non-controlling interests |
$264 |
$197 |
|
$456 |
$346 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2024
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Statements of Cash Flow
| Barrick
Gold Corporation(in millions of United States dollars)
(Unaudited) |
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
OPERATING ACTIVITIES |
|
|
|
|
| Net income |
$634 |
|
$502 |
|
$1,121 |
|
$771 |
|
| Adjustments for the following
items: |
|
|
|
|
|
Depreciation |
|
480 |
|
|
480 |
|
|
954 |
|
|
975 |
|
|
Finance costs, net |
|
51 |
|
|
44 |
|
|
82 |
|
|
102 |
|
|
Impairment charges (note 8b) |
|
1 |
|
|
22 |
|
|
18 |
|
|
23 |
|
|
Income tax expense (note 9) |
|
407 |
|
|
264 |
|
|
581 |
|
|
469 |
|
|
Income from equity investees (note 11) |
|
(115 |
) |
|
(58 |
) |
|
(163 |
) |
|
(111 |
) |
|
Gain on sale of non-current assets |
|
(5 |
) |
|
(3 |
) |
|
(6 |
) |
|
(6 |
) |
|
Loss (gain) on currency translation |
|
5 |
|
|
(12 |
) |
|
17 |
|
|
26 |
|
| Change in working capital
(note 10) |
|
112 |
|
|
(33 |
) |
|
(129 |
) |
|
(224 |
) |
| Other
operating activities (note 10) |
|
(29 |
) |
|
(63 |
) |
|
(99 |
) |
|
(26 |
) |
|
Operating cash flows before interest and income taxes |
|
1,541 |
|
|
1,143 |
|
|
2,376 |
|
|
1,999 |
|
| Interest paid |
|
(131 |
) |
|
(130 |
) |
|
(158 |
) |
|
(153 |
) |
| Interest received |
|
50 |
|
|
51 |
|
|
118 |
|
|
100 |
|
| Income
taxes paid1 |
|
(301 |
) |
|
(232 |
) |
|
(417 |
) |
|
(338 |
) |
|
Net cash provided by operating activities |
|
1,159 |
|
|
832 |
|
|
1,919 |
|
|
1,608 |
|
|
INVESTING ACTIVITIES |
|
|
|
|
| Property, plant and
equipment |
|
|
|
|
|
Capital expenditures (note 4) |
|
(819 |
) |
|
(769 |
) |
|
(1,547 |
) |
|
(1,457 |
) |
|
Sales proceeds |
|
7 |
|
|
3 |
|
|
7 |
|
|
6 |
|
| Investment sales |
|
33 |
|
|
— |
|
|
33 |
|
|
— |
|
| Funding of equity method
investments (note 11) |
|
(11 |
) |
|
— |
|
|
(55 |
) |
|
— |
|
| Dividends received from equity
method investments (note 11) |
|
42 |
|
|
18 |
|
|
89 |
|
|
85 |
|
|
Shareholder loan repayments from equity method investments |
|
45 |
|
|
5 |
|
|
90 |
|
|
5 |
|
|
Net cash used in investing activities |
|
(703 |
) |
|
(743 |
) |
|
(1,383 |
) |
|
(1,361 |
) |
|
FINANCING ACTIVITIES |
|
|
|
|
| Lease repayments |
|
(4 |
) |
|
(4 |
) |
|
(7 |
) |
|
(8 |
) |
| Dividends |
|
(175 |
) |
|
(174 |
) |
|
(350 |
) |
|
(349 |
) |
| Share buyback program (note
13) |
|
(49 |
) |
|
— |
|
|
(49 |
) |
|
— |
|
| Funding from non-controlling
interests (note 14) |
|
30 |
|
|
10 |
|
|
52 |
|
|
10 |
|
| Disbursements to
non-controlling interests (note 14) |
|
(169 |
) |
|
(162 |
) |
|
(290 |
) |
|
(224 |
) |
| Pueblo
Viejo JV partner shareholder loan |
|
5 |
|
|
21 |
|
|
(2 |
) |
|
41 |
|
|
Net cash used in financing activities |
|
(362 |
) |
|
(309 |
) |
|
(646 |
) |
|
(530 |
) |
|
Effect of exchange rate changes on cash and
equivalents |
|
— |
|
|
— |
|
|
(2 |
) |
|
— |
|
|
Net increase (decrease) in cash and equivalents |
|
94 |
|
|
(220 |
) |
|
(112 |
) |
|
(283 |
) |
|
Cash and equivalents at the beginning of
period |
|
3,942 |
|
|
4,377 |
|
|
4,148 |
|
|
4,440 |
|
|
Cash and equivalents at the end of period |
$4,036 |
|
$4,157 |
|
$4,036 |
|
$4,157 |
|
- Income taxes paid excludes $12 million (2023:
$28 million) for the three months ended June 30, 2024 and
$29 million (2023: $56 million) for the six months ended
June 30, 2024 of income taxes payable that were settled against
offsetting value added taxes (“VAT”) receivables.
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2024
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 June 30,2024 |
|
As at December 31,2023 |
|
|
ASSETS |
|
|
| Current assets |
|
|
|
Cash and equivalents |
$4,036 |
|
$4,148 |
|
|
Accounts receivable |
|
566 |
|
|
693 |
|
|
Inventories |
|
1,684 |
|
|
1,782 |
|
|
Other current assets |
|
916 |
|
|
815 |
|
|
Total current assets |
$7,202 |
|
$7,438 |
|
| Non-current assets |
|
|
|
Non-current portion of inventory |
|
2,725 |
|
|
2,738 |
|
|
Equity in investees (note 11) |
|
4,262 |
|
|
4,133 |
|
|
Property, plant and equipment |
|
26,994 |
|
|
26,416 |
|
|
Intangible assets |
|
148 |
|
|
149 |
|
|
Goodwill |
|
3,581 |
|
|
3,581 |
|
|
Other assets |
|
1,307 |
|
|
1,356 |
|
|
Total assets |
$46,219 |
|
$45,811 |
|
|
LIABILITIES AND EQUITY |
|
|
| Current liabilities |
|
|
|
Accounts payable |
$1,386 |
|
$1,503 |
|
|
Debt |
|
11 |
|
|
11 |
|
|
Current income tax liabilities |
|
427 |
|
|
303 |
|
|
Other current liabilities |
|
568 |
|
|
539 |
|
|
Total current liabilities |
$2,392 |
|
$2,356 |
|
| Non-current liabilities |
|
|
|
Debt |
|
4,713 |
|
|
4,715 |
|
|
Provisions |
|
1,946 |
|
|
2,058 |
|
|
Deferred income tax liabilities |
|
3,471 |
|
|
3,439 |
|
|
Other liabilities |
|
1,202 |
|
|
1,241 |
|
|
Total liabilities |
$13,724 |
|
$13,809 |
|
|
Equity |
|
|
|
Capital stock (note 13) |
$28,071 |
|
$28,117 |
|
|
Deficit |
|
(6,400 |
) |
|
(6,713 |
) |
|
Accumulated other comprehensive income |
|
34 |
|
|
24 |
|
|
Other |
|
1,911 |
|
|
1,913 |
|
|
Total equity attributable to Barrick Gold Corporation
shareholders |
$23,616 |
|
$23,341 |
|
|
Non-controlling interests (note 14) |
|
8,879 |
|
|
8,661 |
|
|
Total equity |
$32,495 |
|
$32,002 |
|
|
Contingencies and commitments (notes 4 and 15) |
|
|
|
Total liabilities and equity |
$46,219 |
|
$45,811 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2024
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Statements of Changes in
Equity
| Barrick
Gold Corporation |
|
Attributable to equity holders of the company |
|
|
|
(in millions of United States dollars) (Unaudited) |
Common Shares (in thousands) |
|
Capital stock |
|
Retained earnings (deficit) |
|
Accumulated other comprehensive income (loss)1 |
|
Other2 |
|
Total equity attributable to shareholders |
|
Non-controlling interests |
|
Total equity |
|
|
At January 1, 2024 |
1,755,570 |
|
$28,117 |
|
($6,713 |
) |
$24 |
|
$1,913 |
|
$23,341 |
|
$8,661 |
|
$32,002 |
|
|
Net income |
— |
|
— |
|
665 |
|
— |
|
— |
|
665 |
|
456 |
|
1,121 |
|
|
Total other comprehensive income |
— |
|
— |
|
— |
|
10 |
|
— |
|
10 |
|
— |
|
10 |
|
|
Total comprehensive income |
— |
|
— |
|
665 |
|
10 |
|
— |
|
675 |
|
456 |
|
1,131 |
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
Dividends |
— |
|
— |
|
(350 |
) |
— |
|
— |
|
(350 |
) |
— |
|
(350 |
) |
|
Funding from non-controlling interests (note 14) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
52 |
|
52 |
|
|
Disbursements to non-controlling interests (note 14) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(290 |
) |
(290 |
) |
|
Dividend reinvestment plan (note 13) |
114 |
|
2 |
|
(2 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
|
Share buyback program (note 13) |
(2,950 |
) |
(48 |
) |
— |
|
— |
|
(2 |
) |
(50 |
) |
— |
|
(50 |
) |
|
Total transactions with owners |
(2,836 |
) |
(46 |
) |
(352 |
) |
— |
|
(2 |
) |
(400 |
) |
(238 |
) |
(638 |
) |
|
At June 30, 2024 |
1,752,734 |
|
$28,071 |
|
($6,400 |
) |
$34 |
|
$1,911 |
|
$23,616 |
|
$8,879 |
|
$32,495 |
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2023 |
1,755,350 |
|
$28,114 |
|
($7,282 |
) |
$26 |
|
$1,913 |
|
$22,771 |
|
$8,518 |
|
$31,289 |
|
|
Net income |
— |
|
— |
|
425 |
|
— |
|
— |
|
425 |
|
346 |
|
771 |
|
|
Total other comprehensive loss |
— |
|
— |
|
— |
|
(8 |
) |
— |
|
(8 |
) |
— |
|
(8 |
) |
|
Total comprehensive income (loss) |
— |
|
— |
|
425 |
|
(8 |
) |
— |
|
417 |
|
346 |
|
763 |
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
Dividends |
— |
|
— |
|
(349 |
) |
— |
|
— |
|
(349 |
) |
— |
|
(349 |
) |
|
Funding from non-controlling interests |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
10 |
|
10 |
|
|
Disbursements to non-controlling interests |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(228 |
) |
(228 |
) |
|
Dividend reinvestment plan |
118 |
|
2 |
|
(2 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
|
Total transactions with owners |
118 |
|
2 |
|
(351 |
) |
— |
|
— |
|
(349 |
) |
(218 |
) |
(567 |
) |
|
At June 30, 2023 |
1,755,468 |
|
$28,116 |
|
($7,208 |
) |
$18 |
|
$1,913 |
|
$22,839 |
|
$8,646 |
|
$31,485 |
|
- Includes cumulative translation losses at June 30, 2024:
$95 million (December 31, 2023: $95 million;
June 30, 2023: $95 million).
- Includes additional paid-in capital as at June 30, 2024:
$1,873 million (December 31, 2023: $1,875 million;
June 30, 2023: $1,875 million).
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2024
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;
Richard Peattie, MPhil, FAusIMM, Mineral Resources Manager: Africa
and Middle East; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral
Resource Management and Evaluation Executive (in this capacity, Mr.
Bottoms is also responsible on an interim basis for scientific and
technical information relating to the Latin America and Asia
Pacific region); 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, 2023.
Endnotes
Endnote 1Net earnings
represents net earnings attributable to the equity holders of the
Company.
Endnote 2EBITDA 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. 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. Attributable EBITDA margin is
calculated as attributable EBITDA divided by revenues - as
adjusted. We believe this ratio will assist analysts, investors and
other stakeholders of Barrick to better understand the relationship
between revenues and EBITDA or operating profit. Starting with the
Q2 2024 MD&A, we are presenting net leverage as a non-GAAP
ratio and is calculated as debt, net of cash divided by the sum of
adjusted EBITDA of the last four consecutive quarters. We
believe this ratio will assist analysts, investors and other
stakeholders of Barrick in monitoring our leverage and evaluating
our balance sheet. EBITDA, adjusted EBITDA, attributable EBITDA,
EBITDA margin and net leverage are intended to provide additional
information to investors and analysts 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. EBITDA, adjusted EBITDA and attributable
EBITDA exclude the impact of cash costs of financing activities and
taxes, and the effects of changes in operating working capital
balances, and therefore are not necessarily indicative of operating
profit or cash flow from operations as determined under IFRS. Other
companies may calculate EBITDA, adjusted EBITDA, attributable
EBITDA, EBITDA margin and net leverage 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.sedarplus.ca 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 six months ended |
|
|
6/30/24 |
3/31/24 |
6/30/23 |
6/30/24 |
6/30/23 |
|
Net earnings |
634 |
|
487 |
|
502 |
|
1,121 |
|
771 |
|
|
Income tax expense |
407 |
|
174 |
|
264 |
|
581 |
|
469 |
|
|
Finance costs, neta |
28 |
|
10 |
|
23 |
|
38 |
|
60 |
|
|
Depreciation |
480 |
|
474 |
|
480 |
|
954 |
|
975 |
|
|
EBITDA |
1,549 |
|
1,145 |
|
1,269 |
|
2,694 |
|
2,275 |
|
| Impairment charges of
non-current assetsb |
1 |
|
17 |
|
22 |
|
18 |
|
23 |
|
| Acquisition/disposition
gains |
(5 |
) |
(1 |
) |
(3 |
) |
(6 |
) |
(6 |
) |
| Loss (gain) on currency
translation |
5 |
|
12 |
|
(12 |
) |
17 |
|
26 |
|
| Other expense (income)
adjustmentsc |
48 |
|
(9 |
) |
(3 |
) |
39 |
|
60 |
|
| Income
tax expense, net finance costsa, and depreciation from equity
investees |
119 |
|
102 |
|
95 |
|
221 |
|
173 |
|
|
Adjusted EBITDA |
1,717 |
|
1,266 |
|
1,368 |
|
2,983 |
|
2,551 |
|
|
Non-controlling Interests |
(428 |
) |
(359 |
) |
(380 |
) |
(787 |
) |
(712 |
) |
|
Attributable EBITDA |
1,289 |
|
907 |
|
988 |
|
2,196 |
|
1,839 |
|
|
Revenues - as adjustedd |
2,658 |
|
2,222 |
|
2,346 |
|
4,880 |
|
4,534 |
|
|
Attributable EBITDA margine |
48 |
% |
41 |
% |
42 |
% |
45 |
% |
41 |
% |
|
|
|
|
|
As at 6/30/24 |
As at 12/31/23 |
|
Net leveragef |
|
|
|
0.1:1 |
0.1:1 |
- Finance costs
exclude accretion.
- The net
impairment charges for the six month periods ended June 30, 2024
and June 30, 2023 relate to miscellaneous assets.
- For the three
and six month periods ended June 30, 2024, other expense (income)
adjustments include the interest and penalties recognized following
the proposed settlement of the Zaldívar Tax Assessments in Chile.
Other expense (income) adjustments for the six month period ended
June 30, 2023 mainly related to the $30 million commitment we made
towards the expansion of education infrastructure in Tanzania, per
our community investment obligations under the Twiga partnership,
and care and maintenance expenses at Porgera.
- Refer to Reconciliation of Sales to
Realized Price per ounce/pound on page 76 of the Q2 2024
MD&A.
- Represents attributable EBITDA
divided by revenues - as adjusted.
- Represents debt, net of cash
divided by adjusted EBITDA of the last four consecutive
quarters.
Endnote 3“Free cash flow” is a
non-GAAP financial measure that deducts capital expenditures from
net cash provided by operating activities. Management believes this
to be a useful indicator of our ability to operate without reliance
on additional borrowing or usage of existing cash. Free cash flow
is intended to provide additional information only and does not
have any standardized definition under IFRS, and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The measure is not
necessarily indicative of operating profit or cash flow from
operations as determined under IFRS. Other companies may calculate
this measure differently. Further details on this non-GAAP
financial performance measure are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. The
following table reconciles this non-GAAP financial measure to the
most directly comparable IFRS measure.
Reconciliation of Net Cash Provided by
Operating Activities to Free Cash Flow
| ($
millions) |
For the three months ended |
For the six months ended |
|
|
6/30/24 |
3/31/24 |
6/30/23 |
6/30/24 |
6/30/23 |
|
Net cash provided by operating activities |
1,159 |
|
760 |
|
832 |
|
1,919 |
|
1,608 |
|
|
Capital expenditures |
(819 |
) |
(728 |
) |
(769 |
) |
(1,547 |
) |
(1,457 |
) |
|
Free cash flow |
340 |
|
32 |
|
63 |
|
372 |
|
151 |
|
Endnote 4“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 Accounting Standards as issued
by the International Accounting Standards Board (“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.sedarplus.ca and on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to Net
Earnings per Share, Adjusted Net Earnings and Adjusted Net Earnings
per Share
| ($
millions, except per share amounts in dollars) |
For the three months ended |
For the six months ended |
|
|
6/30/24 |
3/31/24 |
6/30/23 |
6/30/24 |
6/30/23 |
|
Net earnings attributable to equity holders of the Company |
370 |
|
295 |
|
305 |
|
665 |
|
425 |
|
| Impairment charges related to
intangibles, goodwill, property, plant and equipment, and
investmentsa |
1 |
|
17 |
|
22 |
|
18 |
|
23 |
|
| Acquisition/disposition
gains |
(5 |
) |
(1 |
) |
(3 |
) |
(6 |
) |
(6 |
) |
| Loss on currency translation |
5 |
|
12 |
|
(12 |
) |
17 |
|
26 |
|
| Significant tax adjustmentsb |
137 |
|
29 |
|
33 |
|
166 |
|
81 |
|
| Other expense (income)
adjustmentsc |
48 |
|
(9 |
) |
(3 |
) |
39 |
|
60 |
|
| Non-controlling interestd |
0 |
|
(4 |
) |
(7 |
) |
(4 |
) |
(13 |
) |
| Tax
effectd |
1 |
|
(6 |
) |
1 |
|
(5 |
) |
(13 |
) |
|
Adjusted net earnings |
557 |
|
333 |
|
336 |
|
890 |
|
583 |
|
|
Net earnings per sharee |
0.21 |
|
0.17 |
|
0.17 |
|
0.38 |
|
0.24 |
|
|
Adjusted net earnings per sharee |
0.32 |
|
0.19 |
|
0.19 |
|
0.51 |
|
0.33 |
|
- The net
impairment charges for the six month periods ended June 30, 2024
and June 30, 2023 relate to miscellaneous assets.
- For the three
and six month periods ended June 30, 2024, significant tax
adjustments include the proposed settlement of the Zaldívar Tax
Assessments in Chile. Significant tax adjustments for the six month
period ended June 30, 2024 also include the de-recognition of
deferred tax assets, and adjustments in respect of prior years and
the re-measurement of deferred tax balances. For the six month
period ended June 30, 2023, significant tax adjustments mainly
related to the settlement agreement to resolve the tax dispute at
Porgera, adjustments in respect of prior years and the
re-measurement of deferred tax balances.
- For the three
and six month periods ended June 30, 2024, other expense (income)
adjustments include the interest and penalties recognized following
the proposed settlement of the Zaldívar Tax Assessments in Chile.
Other expense (income) adjustments for the six month period ended
June 30, 2023 mainly related to the $30 million commitment we made
towards the expansion of education infrastructure in Tanzania, per
our community investment obligations under the Twiga partnership,
and care and maintenance expenses at Porgera.
- Non-controlling
interest and tax effect for the six month period ended June 30,
2024 primarily relates to net impairment charges.
- Calculated using weighted average
number of shares outstanding under the basic method of earnings per
share.
Endnote 5Refer to the Technical
Report on the Cortez Complex, Lander and Eureka Counties, State of
Nevada, USA, dated December 31, 2021, and filed on SEDAR+ at
www.sedarplus.ca and EDGAR at www.sec.gov on March 18, 2022.
Endnote 6A Tier One Gold Asset
is an asset with a $1,300/oz reserve with potential for 5 million
ounces to support 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. Tier One Assets
must be located in a world class geological district with potential
for organic reserve growth and long-term geologically driven
addition.
Endnote 7Indicative gold
production profile from Fourmile which is conceptual in nature.
Subject to change following completion of the pre-feasibility
study. Fourmile is currently 100% owned by Barrick. As previously
disclosed, Barrick anticipates Fourmile being contributed to the
Nevada Gold Mines joint venture, at fair market value, if certain
criteria are met.
Endnote 8See the Technical
Report on the Pueblo Viejo mine, Dominican Republic, dated March
17, 2023, and filed on SEDAR+ at www.sedarplus.ca and EDGAR at
www.sec.gov on March 17, 2023.
Endnote 9On an attributable basis.
Endnote 10“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.sedarplus.ca
and on EDGAR at www.sec.gov.
Reconciliation of Sales to Realized
Price per ounce/pound
| ($
millions, except per ounce/pound information in dollars) |
Gold |
Copper |
Gold |
Copper |
|
For the three months ended |
For the six months ended |
|
|
6/30/24 |
3/31/24 |
6/30/23 |
6/30/24 |
3/31/24 |
6/30/23 |
6/30/24 |
6/30/23 |
6/30/24 |
6/30/23 |
|
Sales |
2,868 |
|
2,528 |
|
2,584 |
|
219 |
163 |
189 |
5,396 |
|
4,995 |
|
382 |
360 |
| Sales applicable to
non-controlling interests |
(850 |
) |
(795 |
) |
(787 |
) |
0 |
0 |
0 |
(1,645 |
) |
(1,510 |
) |
0 |
0 |
| Sales applicable to equity
method investmentsa,b |
217 |
|
151 |
|
171 |
|
161 |
136 |
133 |
368 |
|
297 |
|
297 |
293 |
| Sales applicable to sites in
closure or care and maintenancec |
(3 |
) |
(2 |
) |
(2 |
) |
0 |
0 |
0 |
(5 |
) |
(9 |
) |
0 |
0 |
| Treatment and refinement
charges |
8 |
|
7 |
|
8 |
|
38 |
34 |
50 |
15 |
|
15 |
|
72 |
93 |
|
Otherd |
0 |
|
0 |
|
0 |
|
0 |
0 |
0 |
0 |
|
0 |
|
0 |
0 |
|
Revenues – as adjusted |
2,240 |
|
1,889 |
|
1,974 |
|
418 |
333 |
372 |
4,129 |
|
3,788 |
|
751 |
746 |
|
Ounces/pounds sold (000s ounces/millions pounds)c |
956 |
|
910 |
|
1,001 |
|
93 |
86 |
101 |
1,866 |
|
1,955 |
|
179 |
190 |
|
Realized gold/copper price per ounce/pounde |
2,344 |
|
2,075 |
|
1,972 |
|
4.53 |
3.86 |
3.70 |
2,213 |
|
1,938 |
|
4.21 |
3.93 |
- Represents sales
of $217 million and $368 million, respectively, for the three and
six month periods ended June 30, 2024 (March 31, 2024:
$151 million and June 30, 2023: $171 million and
$297 million, respectively) applicable to our 45% equity
method investment in Kibali for gold. Represents sales of $89
million and $169 million, respectively, for the three and six
month periods ended June 30, 2024 (March 31, 2024: $80
million and June 30, 2023: $81 million and $179 million,
respectively) applicable to our 50% equity method investment in
Zaldívar and $79 million and $141 million, respectively
(March 31, 2024: $62 million and June 30, 2023: $58
million and $127 million, respectively), applicable to our 50%
equity method investment in Jabal Sayid for copper.
- Sales applicable
to equity method investments are net of treatment and refinement
charges.
- On an
attributable basis. Excludes Pierina, which was producing
incidental ounces until December 31, 2023 while in closure. It also
excludes Long Canyon which is producing residual ounces from the
leach pad while in care and maintenance.
- Represents a
cumulative catch-up adjustment to revenue relating to our streaming
arrangements. Refer to note 2e of the 2023 Annual Financial
Statements for more information.
- Realized price per ounce/pound may
not calculate based on amounts presented in this table due to
rounding.
Endnote 11These 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 |
|
|
6/30/24 |
3/31/24 |
6/30/23 |
6/30/24 |
6/30/23 |
|
Minesite sustaining capital expenditures |
631 |
550 |
524 |
1,181 |
978 |
| Project capital expenditures |
176 |
165 |
238 |
341 |
464 |
|
Capitalized interest |
12 |
13 |
7 |
25 |
15 |
|
Total consolidated capital expenditures |
819 |
728 |
769 |
1,547 |
1,457 |
Endnote 12Attributable capital
expenditures are presented on the same basis as guidance, which
includes 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 Zaldívar and
Jabal Sayid and, beginning in 2024, our 24.5% share of Porgera.
Endnote 13Gold 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).
Endnote 14“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 their ability to
generate positive cash flow, both on an individual site basis and
an overall company basis. “Total cash costs” per ounce start with
our cost of sales related to gold production and removes
depreciation, the noncontrolling interest of cost of sales and
includes by-product credits. “All-in sustaining costs” per ounce
start with “Total cash costs” per ounce and includes sustaining
capital expenditures, sustaining leases, general and administrative
costs, minesite exploration and evaluation costs and reclamation
cost accretion and amortization. These additional costs reflect the
expenditures made to maintain current production levels. “All-in
costs” per ounce start with “All-in sustaining costs” and adds
additional costs that reflect the varying costs of producing gold
over the life-cycle of a mine, including: project capital
expenditures (capital spending at new projects and major, discrete
projects at existing operations intended to increase net present
value through higher production or longer mine life) and other
non-sustaining costs (primarily non-sustaining leases, exploration
and evaluation costs, community relations costs and general and
administrative costs that are not associated with current
operations). These definitions recognize that there are different
costs associated with the life-cycle of a mine, and that it is
therefore appropriate to distinguish between sustaining and
non-sustaining costs. Barrick believes that the use of “Total cash
costs” per ounce, “All-in sustaining costs” per ounce and "All-in
costs" per ounce will assist analysts, investors and other
stakeholders of Barrick in understanding the costs associated with
producing gold, understanding the economics of gold mining,
assessing our operating performance and also our ability to
generate free cash flow from current operations and to generate
free cash flow on an overall company basis. “Total cash costs” per
ounce, “All-in sustaining costs” per ounce and "All-in costs" per
ounce are intended to provide additional information only and do
not have standardized definitions under IFRS and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures are
not equivalent to net income or cash flow from operations as
determined under IFRS. Although the WGC has published a
standardized definition, other companies may calculate these
measures differently. Further details on these non-GAAP financial
performance measures are provided in the MD&A accompanying
Barrick’s financial statements filed from time to time on SEDAR+ at
www.sedarplus.ca and on EDGAR at www.sec.gov.
Reconciliation of Gold Cost of Sales to
Total cash costs, All-in sustaining costs and All-in costs,
including on a per ounce basis
| ($
millions, except per ounce information in dollars) |
|
For the three months ended |
For the six months ended |
|
|
Footnote |
6/30/24 |
3/31/24 |
6/30/23 |
6/30/24 |
6/30/23 |
|
Cost of sales applicable to gold production |
|
1,799 |
|
1,761 |
|
1,753 |
|
3,560 |
|
3,514 |
|
|
Depreciation |
|
(401 |
) |
(407 |
) |
(413 |
) |
(808 |
) |
(858 |
) |
|
Cash cost of sales applicable to equity method investments |
|
77 |
|
56 |
|
67 |
|
133 |
|
130 |
|
|
By-product credits |
|
(75 |
) |
(56 |
) |
(60 |
) |
(131 |
) |
(121 |
) |
| Non-recurring items |
a |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
| Other |
b |
5 |
|
2 |
|
5 |
|
7 |
|
5 |
|
|
Non-controlling interests |
c |
(393 |
) |
(400 |
) |
(388 |
) |
(793 |
) |
(766 |
) |
|
Total cash costs |
|
1,012 |
|
956 |
|
964 |
|
1,968 |
|
1,904 |
|
|
General & administrative costs |
|
32 |
|
28 |
|
28 |
|
60 |
|
67 |
|
|
Minesite exploration and evaluation costs |
d |
6 |
|
13 |
|
14 |
|
19 |
|
25 |
|
|
Minesite sustaining capital expenditures |
e |
631 |
|
550 |
|
524 |
|
1,181 |
|
978 |
|
|
Sustaining leases |
|
9 |
|
6 |
|
9 |
|
15 |
|
16 |
|
|
Rehabilitation - accretion and amortization (operating sites) |
f |
20 |
|
17 |
|
15 |
|
37 |
|
29 |
|
|
Non-controlling interest, copper operations and other |
g |
(278 |
) |
(224 |
) |
(197 |
) |
(502 |
) |
(356 |
) |
|
All-in sustaining costs |
|
1,432 |
|
1,346 |
|
1,357 |
|
2,778 |
|
2,663 |
|
|
Global exploration and evaluation and project expense |
d |
91 |
|
82 |
|
87 |
|
173 |
|
147 |
|
|
Community relations costs not related to current operations |
|
0 |
|
0 |
|
1 |
|
0 |
|
1 |
|
|
Project capital expenditures |
e |
176 |
|
165 |
|
238 |
|
341 |
|
464 |
|
|
Non-sustaining leases |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
|
Rehabilitation - accretion and amortization (non-operating
sites) |
f |
7 |
|
7 |
|
6 |
|
14 |
|
12 |
|
|
Non-controlling interest and copper operations and other |
g |
(37 |
) |
(92 |
) |
(122 |
) |
(129 |
) |
(210 |
) |
|
All-in costs |
|
1,669 |
|
1,508 |
|
1,567 |
|
3,177 |
|
3,077 |
|
|
Ounces sold - attributable basis (000s ounces) |
h |
956 |
|
910 |
|
1,001 |
|
1,866 |
|
1,955 |
|
|
Cost of sales per ounce |
i,j |
1,441 |
|
1,425 |
|
1,323 |
|
1,433 |
|
1,350 |
|
|
Total cash costs per ounce |
j |
1,059 |
|
1,051 |
|
963 |
|
1,055 |
|
974 |
|
| Total
cash costs per ounce (on a co-product basis) |
j,k |
1,112 |
|
1,093 |
|
1,003 |
|
1,103 |
|
1,016 |
|
|
All-in sustaining costs per ounce |
j |
1,498 |
|
1,474 |
|
1,355 |
|
1,489 |
|
1,362 |
|
| All-in
sustaining costs per ounce (on a co-product basis) |
j,k |
1,551 |
|
1,516 |
|
1,395 |
|
1,537 |
|
1,404 |
|
|
All-in costs per ounce |
j |
1,746 |
|
1,657 |
|
1,566 |
|
1,702 |
|
1,574 |
|
| All-in
costs per ounce (on a co-product basis) |
j,k |
1,799 |
|
1,699 |
|
1,606 |
|
1,750 |
|
1,616 |
|
|
a. |
Non-recurring items |
|
|
These costs are not indicative of our cost of production and have
been excluded from the calculation of total cash costs. |
|
b. |
Other |
|
|
Other adjustments for the three and six month periods ended
June 30, 2024 include the removal of total cash costs and
by-product credits associated with Pierina of $nil and $nil,
respectively (March 31, 2024: $nil; June 30, 2023: $nil
and $3 million, respectively), which was producing incidental
ounces until December 31, 2023 while in closure. |
|
c. |
Non-controlling interests |
|
|
Non-controlling interests include non-controlling interests related
to gold production of $532 million and $1,074 million,
respectively, for the three and six month periods ended
June 30, 2024 (March 31, 2024: $542 million and
June 30, 2023: $533 million and $1,062 million, respectively).
Non-controlling interests include NGM, Pueblo Viejo,
Loulo-Gounkoto, Tongon, North Mara and Bulyanhulu. Refer to Note 4
to the Financial Statements for further information. |
|
d. |
Exploration and evaluation costs |
|
|
Exploration, evaluation and project expenses are presented as
minesite sustaining if they support current mine operations and
project if they relate to future projects. Refer to page 50 of the
Q2 2024 MD&A. |
|
e. |
Capital expenditures |
|
|
Capital expenditures are related to our gold sites only and are
split between minesite sustaining and project capital expenditures.
Project capital expenditures are capital spending at new projects
and major, discrete projects at existing operations intended to
increase net present value through higher production or longer mine
life. Significant projects in the current year include the plant
expansion project at Pueblo Viejo and the TS solar project at NGM.
Refer to page 50 of the Q2 2024 MD&A. |
|
f. |
Rehabilitation—accretion and amortization |
|
|
Includes depreciation on the assets related to rehabilitation
provisions of our gold operations and accretion on the
rehabilitation provision of our gold operations, split between
operating and non-operating sites. |
|
g. |
Non-controlling interest and copper
operations |
|
|
Removes general and administrative costs related to
non-controlling interests and copper based on a percentage
allocation of revenue. Also removes exploration, evaluation and
project expenses, rehabilitation costs and capital expenditures
incurred by our copper sites and the non-controlling interest of
NGM, Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara and
Bulyanhulu operating segments. It also includes capital
expenditures applicable to our equity method investment in Kibali.
Figures remove the impact of Pierina up until December 31, 2023.
The impact is summarized as the following: |
| ($
millions) |
For the three months ended |
For the six months ended |
|
Non-controlling interest, copper operations and other |
6/30/24 |
3/31/24 |
6/30/23 |
6/30/24 |
6/30/23 |
|
General & administrative costs |
(6 |
) |
(4 |
) |
(5 |
) |
(10 |
) |
(11 |
) |
| Minesite exploration and
evaluation expenses |
(4 |
) |
(2 |
) |
(4 |
) |
(6 |
) |
(8 |
) |
| Rehabilitation - accretion and
amortization (operating sites) |
(6 |
) |
(5 |
) |
(5 |
) |
(11 |
) |
(10 |
) |
|
Minesite sustaining capital expenditures |
(262 |
) |
(213 |
) |
(183 |
) |
(475 |
) |
(327 |
) |
|
All-in sustaining costs total |
(278 |
) |
(224 |
) |
(197 |
) |
(502 |
) |
(356 |
) |
|
Global exploration and evaluation and project expense |
(30 |
) |
(44 |
) |
(37 |
) |
(74 |
) |
(49 |
) |
|
Project capital expenditures |
(7 |
) |
(48 |
) |
(85 |
) |
(55 |
) |
(161 |
) |
|
All-in costs total |
(37 |
) |
(92 |
) |
(122 |
) |
(129 |
) |
(210 |
) |
|
h. |
Ounces sold - attributable basis |
|
|
Excludes Pierina, which was producing incidental ounces until
December 31, 2023 while in closure. It also excludes Long Canyon
which is producing residual ounces from the leach pad while in care
and maintenance. |
|
i. |
Cost of sales per ounce |
|
|
Figures remove the cost of sales impact of: Pierina of $nil and
$nil, respectively, for the three and six month periods ended
June 30, 2024 (March 31, 2024: $nil and June 30,
2023: $nil and $3 million, respectively), which was producing
incidental ounces up until December 31, 2023 while in closure. Gold
cost of sales per ounce is calculated as cost of sales across our
gold operations (excluding sites in closure or care and
maintenance) divided by ounces sold (both on an attributable basis
using Barrick's ownership share). |
|
j. |
Per ounce figures |
|
|
Cost of sales per ounce, total cash costs per ounce, all-in
sustaining costs per ounce and all-in costs per ounce may not
calculate based on amounts presented in this table due to
rounding. |
|
k. |
Co-product costs per ounce |
|
|
Total cash costs per ounce, all-in sustaining costs per ounce and
all-in costs per ounce presented on a co-product basis removes the
impact of by-product credits of our gold production (net of
non-controlling interest) calculated as: |
| ($
millions) |
For the three months ended |
For the six months ended |
|
|
6/30/24 |
3/31/24 |
6/30/23 |
6/30/24 |
6/30/23 |
|
By-product credits |
75 |
|
56 |
|
60 |
|
131 |
|
121 |
|
|
Non-controlling interest |
(24 |
) |
(18 |
) |
(20 |
) |
(42 |
) |
(39 |
) |
|
By-product credits (net of non-controlling interest) |
51 |
|
38 |
|
40 |
|
89 |
|
82 |
|
Endnote 15Starting in 2024, we
have presented our copper production and sales quantities in tonnes
rather than pounds (1 tonne is equivalent to 2,204.6 pounds). Our
copper cost metrics are still reported on a per pound basis.
Endnote 16Copper 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 17“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 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,
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.sedarplus.ca and on EDGAR at
www.sec.gov.
Reconciliation of Copper Cost of Sales
to C1 cash costs and All-in sustaining costs, including on a per
pound basis
| ($
millions, except per pound information in dollars) |
For the three months ended |
For the six months ended |
|
|
6/30/24 |
3/31/24 |
6/30/23 |
6/30/24 |
6/30/23 |
|
Cost of sales |
172 |
|
168 |
|
176 |
|
340 |
|
350 |
|
|
Depreciation/amortization |
(71 |
) |
(60 |
) |
(59 |
) |
(131 |
) |
(103 |
) |
|
Treatment and refinement charges |
38 |
|
34 |
|
50 |
|
72 |
|
93 |
|
|
Cash cost of sales applicable to equity method investments |
84 |
|
82 |
|
84 |
|
166 |
|
171 |
|
|
Less: royalties |
(16 |
) |
(12 |
) |
(16 |
) |
(28 |
) |
(31 |
) |
|
By-product credits |
(6 |
) |
(5 |
) |
(6 |
) |
(11 |
) |
(10 |
) |
|
Other |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
|
C1 cash costs |
201 |
|
207 |
|
229 |
|
408 |
|
470 |
|
|
General & administrative costs |
5 |
|
4 |
|
4 |
|
9 |
|
10 |
|
|
Rehabilitation - accretion and amortization |
2 |
|
2 |
|
2 |
|
4 |
|
4 |
|
|
Royalties |
16 |
|
12 |
|
16 |
|
28 |
|
31 |
|
|
Minesite exploration and evaluation costs |
1 |
|
0 |
|
2 |
|
1 |
|
4 |
|
|
Minesite sustaining capital expenditures |
111 |
|
83 |
|
58 |
|
194 |
|
91 |
|
|
Sustaining leases |
4 |
|
1 |
|
4 |
|
5 |
|
7 |
|
|
All-in sustaining costs |
340 |
|
309 |
|
315 |
|
649 |
|
617 |
|
|
Tonnes sold - attributable basis (thousands of tonnes) |
42 |
|
39 |
|
46 |
|
81 |
|
86 |
|
|
Pounds sold - attributable basis (millions pounds) |
93 |
|
86 |
|
101 |
|
179 |
|
190 |
|
|
Cost of sales per pounda,b |
3.05 |
|
3.20 |
|
2.84 |
|
3.12 |
|
3.02 |
|
|
C1 cash costs per pounda |
2.18 |
|
2.40 |
|
2.28 |
|
2.28 |
|
2.48 |
|
|
All-in sustaining costs per pounda |
3.67 |
|
3.59 |
|
3.13 |
|
3.64 |
|
3.26 |
|
- Cost of sales
per pound, C1 cash costs per pound and all-in sustaining costs per
pound may not calculate based on amounts presented in this table
due to rounding.
- Copper cost of sales per pound is
calculated as cost of sales across our copper operations divided by
pounds sold (both on an attributable basis using Barrick's
ownership share).
Endnote 18Copper margins are
calculated as realized price10 per pound of copper minus cost of
sales per pound of copper.
Endnote 19Indicative copper
production profile from Lumwana, which is conceptual in nature.
Subject to change following completion of the feasibility
study.
Endnote 20Indicative gold and
copper recovered production profile from Reko Diq is conceptual in
nature and subject to change following completion of the updated
feasibility study. 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.
Endnote 21Estimated 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, 2023,
unless otherwise noted. Mineral reserves and resources at Cortez
are reported inclusive of Goldrush at Barrick’s 61.5% share. Cortez
proven reserves of 1.1 million tonnes grading 1.86g/t representing
0.064 million ounces of gold, and probable reserves of 130 million
tonnes grading 2.13g/t representing 9.0 million ounces of gold.
Measured resources of 1.1 million tonnes grading 1.86g/t
representing 0.064 million ounces of gold, and indicated resources
of 190 million tonnes grading 1.97g/t representing 12 million
ounces of gold. Inferred resources of 97 million tonnes grading
1.3g/t representing 4.0 million ounce of gold. Complete mineral
reserve and mineral resource data for all mines and projects
referenced in this press release, including tonnes, grades, and
ounces, can be found in the Mineral Reserves and Mineral Resources
Tables included on pages 37-45 of Barrick’s 2023 Annual Information
Form/Form 40-F filed on SEDAR+ at www.sedarplus.ca and on EDGAR at
www.sec.gov.
Endnote 22Refer to the
Technical Report on the Kibali Gold Mine, Democratic Republic of
the Congo dated March 18, 2022 with an effective date of December
31, 2021, and filed on SEDAR+
at www.sedarplus.com and EDGAR at www.sec.gov on March
18, 2022.
Endnote 23Lost Time Injury
Frequency Rate is a ratio calculated as follows: number of lost
time injuries x 1,000,000 hours divided by the total number of
hours worked.
Endnote 24Includes
Goldrush.
Endnote 25Porgera was placed on
care and maintenance from April 25, 2020 until December 22, 2023.
On December 22, 2023, the Porgera Project Commencement Agreement
was completed and recommissioning of the mine commenced. As a
result, Porgera is included in our 2024 guidance at 24.5%.
Endnote 26Total cash costs and
all-in sustaining costs per ounce include costs allocated to
non-operating sites.
Endnote 27Operating 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 28Includes corporate
administration costs.
Shares Listed
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Transfer Agents and Registrars
TSX Trust Company301 – 100 Adelaide Street West
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Telephone: 1 800 387 0825Fax: 1 888 249 6189
Email: shareholderinquiries@tmx.comWebsite: www.tsxtrust.com
Corporate Office
Barrick Gold Corporation161 Bay Street, Suite
3700Toronto, Ontario M5J 2S1Canada
Telephone: +1 416 861 9911Email: investor@barrick.comWebsite:
www.barrick.com
Enquiries
President and Chief Executive OfficerMark
Bristow+1 647 205 7694+44 7880 711 386
Senior Executive Vice-President and Chief Financial
OfficerGraham Shuttleworth+1 647 262 2095+44 7797
711 338
Investor and Media RelationsKathy du Plessis+44
207 557 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”, “ramp up”, “commitment” “opportunities”,
“foundation”, “guidance”, “project”, “expand”, “invest”,
“continue”, “progress”, “develop”, “on track”, “estimate”,
“growth”, “potential”, “prospect”, “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;
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 and
anticipated production growth from Barrick’s organic project
pipeline and reserve replacement; Barrick’s global exploration
strategy and planned exploration activities; our ability to
identify new Tier One assets and the potential for existing assets
to attain Tier One status, including Fourmile and Porgera;
Barrick’s copper strategy; our plans for, and expected completion
and benefits of, our growth projects; potential mineralization and
metal or mineral recoveries; our investment in and expected
benefits of process control improvements; targeted first production
for the Reko Diq project and its expected mine life; projected
annual production for the Goldrush and Fourmile projects; Barrick’s
partnership with Papua New Guinea and the sharing of projected
economic benefits from Porgera with Papua New Guinea stakeholders
under the Community Development Agreement; our pipeline of high
confidence projects at or near existing operations, including
Fourmile; Barrick’s commitment to the Democratic Republic of the
Congo and potential for further growth opportunities at Kibali;
Barrick’s strategy, plans, targets and goals in respect of
environmental and social governance issues, including local
community relations, economic contributions and education,
employment and procurement initiatives, climate change (including
our GHG emissions reduction targets and renewable energy
initiatives), and biodiversity initiatives (including the BRIA);
Barrick’s performance dividend policy and share buyback program;
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; 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; the Company’s ability to
achieve its sustainability goals, including its climate-related
goals and GHG emissions reduction targets, in particular its
ability to achieve its Scope 3 emissions targets which require
reliance on entities within Barrick’s value chain, but outside of
the Company’s direct control, to achieve such targets within the
specified time frames; 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 and
conflicts in the Middle East; 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 incidents, including
those caused by computer viruses, malware, ransomware and other
cyberattacks, or similar information technology system failures,
delays and/or 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 ongoing global supply chain disruptions, 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.
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.
Barrick Gold (TSX:ABX)
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Barrick Gold (TSX:ABX)
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