Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today reported its
first quarter results which were in line with guidance and position
the Company well to meet its full year targets. Gold production is
expected to ramp up steadily during the year, supported by the
completion of the Pueblo Viejo plant expansion and the resumption
of operations at the Porgera mine. Additionally, copper production
is also on track to meet the full year’s guidance.
Reporting its Q1 results, Barrick said lower
production and the consequent higher costs reflected the delayed
ramp up at Pueblo Viejo following reconstruction of the conveyor,
which has now been completed, in addition to planned maintenance at
Nevada Gold Mines (NGM) and mine sequencing at other sites. In the
meantime, the Company was progressing its four major organic growth
projects: the ramp up of the Goldrush gold mine in Nevada; the
Pueblo Viejo expansion; the Super Pit project at the Lumwana copper
mine in Zambia; and the development of the giant copper-gold mine
at Reko Diq in Pakistan. Brownfields growth continues to support
Barrick’s unique reserve replacement record and greenfields
exploration is expanding its portfolio across the world.
Financial results for the quarter show a
year-over-year 143% increase in net earnings per share, a 36% rise
in adjusted net earnings1, and a 7% increase to $907 million
in attributable EBITDA2, with the operations delivering
$760 million in operating cash flow for the quarter. The
quarterly dividend was maintained at $0.10 per share.
Operational highlights for the quarter also
included the accelerated ramp-up of Goldrush in Nevada after its
final permitting (Record of Decision) late last year. At the nearby
Fourmile project — a potentially world-class asset 100% owned by
Barrick — drilling for a prefeasibility study has started to drive
it up the value curve. Exploration has identified open-ended
high-grade upside at Turquoise Ridge in Nevada, already Barrick’s
highest-grade mine, and at Kibali in the Democratic Republic of
Congo, geologists have discovered a significant high-grade trend
similar to the KCD deposit on which the mine was built.
Commenting on the results, president and chief
executive Mark Bristow said Barrick’s ability to grow its gold and
copper production from its peerless asset base would amplify its
profitability in the rising commodity markets.
“Our focus on exploration has placed Barrick in
the unique position of more than replacing the reserves we mine
year after year. Our key organic projects, such as the development
of Reko Diq, the extension of Pueblo Viejo’s Tier One13 life by
more than 20 years and the transformation of Lumwana into one of
the world’s major copper mines will secure Barrick’s production
profile well into the future,” he said.
Barrick’s holistic sustainability strategy
remains foundational to all aspects of its business and continues
to deliver real value to stakeholders. Bristow noted that among
many other things, the Company had increased its water re-use and
recycle rate to 84% last quarter, commissioned the first stage of a
100-megawatt solar array at NGM and had a 16-megawatt solar array
permitted at Kibali. Power purchase agreements by NGM have avoided
75% of its emissions. On the biodiversity front, Barrick has a
730-hectare rehabilitation plan for its operating sites for 2024
and also aims to relocate 72 more white rhinos to the Garamba
National Park in the Democratic Republic of Congo, in conjunction
with the Institut Congolais pour la Conservation de la Nature
(ICCN) and African Parks.
Financial and Operating
Highlights
|
Financial Results |
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
Realized gold
price3,4
($ per ounce) |
2,075 |
1,986 |
1,902 |
| Realized copper
price3,4
($ per pound) |
3.86 |
3.78 |
4.20 |
| Net earnings5
($ millions) |
295 |
479 |
120 |
| Adjusted net earnings1
($ millions) |
333 |
466 |
247 |
| Attributable EBITDA2($
millions) |
907 |
1,068 |
851 |
| Net cash provided by operating
activities ($ millions) |
760 |
997 |
776 |
| Free cash
flow6
($ millions) |
32 |
136 |
88 |
| Net earnings per share
($) |
0.17 |
0.27 |
0.07 |
| Adjusted net earnings per
share1 ($) |
0.19 |
0.27 |
0.14 |
|
Attributable capital expenditures7 ($ millions) |
572 |
660 |
526 |
|
Operating Results |
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
Gold |
|
|
|
|
Production3
(thousands of ounces) |
940 |
1,054 |
952 |
| Cost of sales
(Barrick’s share)3,8 ($ per ounce) |
1,425 |
1,359 |
1,378 |
| Total cash
costs3,9
($ per ounce) |
1,051 |
982 |
986 |
| All-in
sustaining
costs3,9
($ per ounce) |
1,474 |
1,364 |
1,370 |
|
Copper |
|
|
|
|
Production3,10
(thousands of tonnes) |
40 |
51 |
40 |
| Cost of sales (Barrick’s
share)3,11 ($ per pound) |
3.20 |
2.92 |
3.22 |
| C1 cash
costs3,12
($ per pound) |
2.40 |
2.17 |
2.71 |
| All-in
sustaining
costs3,12
($ per pound) |
3.59 |
3.12 |
3.40 |
|
Financial Position |
As at 3/31/24 |
As at 12/31/23 |
As at 3/31/23 |
|
Debt (current and
long-term)
($ millions) |
4,725 |
4,726 |
4,777 |
| Cash and
equivalents
($ millions) |
3,942 |
4,148 |
4,377 |
| Debt,
net of
cash
($ millions) |
783 |
578 |
400 |
Key Performance Indicators
Best Assets
- Barrick on track to achieve 2024
targets as Pueblo Viejo and Porgera ramp up
- Another strong performance from
Loulo-Gounkoto and Veladero in Q1
- Costs expected to track lower
through the year on steadily increasing production
- Pueblo Viejo completes conveyor
rebuild, plant ramping up in Q2
- Porgera produces first gold, with
plant ramp-up on track to reach capacity in 2024
- Another significant contribution
from the copper portfolio with increasing production forecast
through the year
- Reko Diq and Lumwana feasibility
studies on track for completion by year end with long-lead orders
expected to commence in Q3
- Focus shifts to Fourmile on the back
of Goldrush success and exploration expands beyond brownfields
targets
- Brownfields growth continues as
engine for organic reserve replacement with encouraging drilling
results at NGM, Loulo and Kibali
- Greenfield exploration,
complemented by strategic partnerships, grows portfolio in the most
prospective belts
Leader in Sustainability
- Continued focus on safety, refining
our ‘Journey to Zero’ program with Group-wide rollout of Fatal Risk
Standards
- Differentiated and holistic approach
to sustainability reinforced in Sustainability Report to be
published in May 2024
- Commissioned 50% of the
200-megawatt solar facility in Nevada — an initiative supported by
U.S. government incentives of over $100 million, including
incentives for U.S.-manufactured solar cells
Delivering Value
- Barrick’s focus on gold and copper
production growth amplifies profitability in rising commodity
market
- Operating cash flow of
$760 million for the quarter
- Net earnings per share of $0.17 and
adjusted net earnings per share1 of $0.19 for the quarter
- $0.10 per share dividend
declared
Q1 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 Q1 presentation materials will be available
on Barrick’s website at www.barrick.com and the webinar will remain
on the website for later viewing.
BARRICK DECLARES Q1
DIVIDEND
Barrick today announced the declaration
of a dividend of $0.10 per share for Q1 2024. The dividend is
consistent with the Company’s Performance Dividend Policy announced
at the start of 2022.
The Q1 2024 dividend will be paid on June 17,
2024 to shareholders of record at the close of business on May 31,
2024.
“The continued strength of our balance sheet and
our global asset base provide us with the ability to maintain the
distribution of a robust dividend to our shareholders, whilst still
ensuring Barrick has adequate liquidity to invest in growing our
business,” said senior executive vice-president and chief financial
officer Graham Shuttleworth.
WORLD-CLASS COPPER PROJECTS SET TO DELIVER INTO RISING
PRICE AND DEMAND MARKET
The copper industry has traditionally
suffered from underinvestment while the search for new resources to
boost production has accelerated. The long lead times needed to
turn discoveries into mines mean that supply is unable to meet the
growing global demand, driven by the worldwide transition to
renewable energy.
Foreseeing the emergence of the metal’s critical
importance to the greening of the global grid, Barrick made the
expansion of its copper portfolio a strategic priority at the time
of the merger with Randgold five years ago. A thorough review of
its global assets highlighted two significant opportunities: the
Lumwana mine in Zambia; and the dormant Reko Diq project in
Pakistan.
The new Barrick team restructured and
re-engineered the struggling Lumwana operation back to health and
then embarked on a Super Pit expansion project which will transform
Lumwana into one of the world’s largest copper mines, with a
projected annual production of around 240,000 tonnes per year over
a life of more than 30 years.14 It is a key component of the
Zambian government’s drive to revive the country’s copper
industry.
At the same time, Barrick revisited the Reko Diq
project in Pakistan, which hosts one of the world’s largest
undeveloped copper-gold deposits. Stalled at the feasibility stage
almost a decade ago, Barrick revitalized the project through a
reconstituted ownership structure based on its trademark
partnership model. The Company owns 50% and will operate the mine,
a number of Pakistani state-owned enterprises hold 25% and, at
Barrick’s insistence, the remaining 25% is held by the government
of the Balochistan province to ensure that the province and its
people will receive a substantial economic benefit from the
mine.
Both projects are on track for first production
in 2028 when they will lift Barrick into the upper tier of copper
miners and stand alongside its peerless gold asset portfolio as a
major contributor. It is worth noting that some analysts predict
that gold and copper both appear to be entering a new commodity
super cycle where demand outstrips supply, leading to high prices
for years to come.
President and chief executive Mark Bristow said
Reko Diq was a prime example of Barrick’s ability to recognize and
realize value. “This is undoubtedly one of the best undeveloped
copper-gold deposits in the world, with a truly unique combination
of large scale, low strip and high-grade orebodies. Barrick has a
long record of success in seeing projects of this magnitude through
from construction to operation, and we also bring to Reko Diq our
expertise in successfully partnering with host countries for the
benefit of all stakeholders in developing jurisdictions globally,”
he said.
“There is also an enormous opportunity here to
further unlock value, not only at Reko Diq but also in the wider
region, which is underexplored and highly prospective."
Regarding Lumwana, Bristow said that well before
the completion of its expansion program, the revived mine had
already contributed almost $3 billion to the Zambian economy since
2019 in the form of royalties, taxes, salaries and the procurement
of goods and services from local businesses.
As at its other operations, Barrick has also
promoted the development of a sustainable local economy around the
mine. Among other things, it has launched a Business Accelerator
Program designed to build the commercial capacity of the
contractors in its supply chain, equipping them to grow and
diversify their businesses.POWER-BASED STRATEGIES AND
TECHNOLOGY DRIVE EFFICIENCIES, CUT COSTS
Barrick’s group-wide transition to clean
energy is making steady progress with the commissioning of 50% of
the TS Solar Power facility at NGM in April marking another major
milestone on our greenhouse gas (GHG) emissions reduction
roadmap.
With 100 megawatts of energy-producing capacity
in this first phase, the solar facility began transmitting power to
NGM’s operations in April.
When the second and final stage is completed in
the second quarter of 2024, adding another 100 megawatts of power,
the solar array will have the capacity to produce between 15% to
20% of NGM’s annual power demand — reducing NGM’s annual GHG
emissions by 8% and Barrick’s overall GHG emissions by 5% against a
2018 baseline. The U.S. government provided an important economic
incentive for the development of this renewable project via a $35
million tax benefit (Barrick’s share).
NGM has committed to a 20% carbon reduction by
2025 which will be achieved through the TS Solar facility and the
modification of NGM’s TS Power Plant providing the ability to use
cleaner burning natural gas as a fuel source.
Up next at NGM is the development of an
additional solar power facility with a battery energy storage
system (BESS) to serve as a secondary power source, mitigating the
impacts of power grid disruption, and enhancing renewable energy
consumption during off-peak hours. The project has been awarded $95
million in funding from the U.S. Department of Energy following a
highly-competitive process that evaluated potential clean energy
projects on mine land across the country.
At Loulo-Gounkoto in Mali, the use of solar
energy is also increasing with a 72-megawatt solar power facility
and 38-megwatt BESS now connected to the complex’s micro-grid.
Solar power accounted for 28% of the total energy blend used in the
first quarter of 2024, which is up from 14% in 2023 and 9% in 2022.
Energy costs were down $6 million in the first quarter with this
shift to solar away from heavy fuel oil.
In the Democratic Republic of Congo, Kibali’s
three hydropower stations provided most of the mine’s power last
year. At an average cost of $0.04 per kilowatt-hour, the hydropower
blend is 90% cheaper than diesel fuel. The current expansion of the
mine’s solar plant will increase the renewable energy use from 81%
to 85%, with the mine running solely on renewal power during the
six-month rainy season.
In Argentina, the Libertadores powerline is
supplying renewable power to Veladero from neighboring Chile’s
national grid, reducing GHG emissions and adding cost efficiencies.
2023 was the powerline’s first full year of operation — and it’s
one reason Veladero exceeded its production guidance and beat its
guidance on costs last year. A solar plant project at Pueblo Viejo
in the Dominican Republic is also underway.
Barrick is targeting an overall 30% reduction in
GHG emissions by 2030 (against our 2018 baseline) with the goal of
achieving net-zero emissions by 2050.NEVADA GOLD MINES
CELEBRATES OFFICIAL OPENING OF GOLDRUSH
The Goldrush Project is officially on
track to produce 130,000 ounces15
of gold this year and will further enhance the value Nevada
Gold Mines (NGM) brings to the state through taxes, employment and
meaningful support for communities, said Barrick President and CEO,
Mark Bristow, at the project’s opening ceremony attended by
Governor Joe Lombardo and local stakeholders.
Barrick, which owns 61.5% of the project through
the NGM joint venture with Newmont (38.5%), is developing and will
operate the mine, scheduled to reach commercial production by 2026
and growing to approximately 400,000 ounces per annum15 by 2028
(100% basis). The 24-year underground mine is expected to provide
500 jobs during its construction and employment for 570 people once
operational.
More than $300 million of a $1 billion capital
budget (100% basis) has been spent on the project, which is
expected to generate substantial tax revenue for the state both in
the form of net proceeds from minerals tax and the gold and silver
excise tax, earmarked for education. in Nevada under the new mine
tax framework.
Speaking at the ribbon-cutting ceremony, Bristow
thanked the bi-partisan federal delegation and the governor for
their active and unwavering commitment that was instrumental in
obtaining the record of decision, as well as our community
stakeholders for supporting the project through the permitting
process. “We recognize that we have been entrusted with a
tremendous economic and environmental responsibility and we look
forward to sharing the benefits of this new mine with Nevada and
its people,” he said.
BARRICK OPENS ACADEMY AT CLOSED BUZWAGI
MINE
Barrick has officially opened its
world-class training academy at the old Buzwagi mine, in line with
its mine closure objective of leaving a positive legacy after
mining has finished.
The Barrick Academy is designed to offer
tailor-made training programs aimed at developing Barrick’s
frontline managers to grow both as individuals and as leaders in
their fields, while equipping them with the skills to manage their
teams more effectively and to improve performance.
The Academy will be training more than 2,000
foremen, supervisors and superintendents from the Africa and Middle
East region in the next 24 months. Looking ahead, we are also
gearing up to include our contractors and expand the curriculum to
cover wider disciplines, including financial leadership, advanced
computer literacy and safety courses.
The opening of the Barrick Academy follows the
construction of an airport terminal at Buzwagi’s Kahama airstrip in
January this year, which has paved the way for a scheduled airline
service that can serve more than 200 passengers at a time. It is
expected to be a major catalyst for economic growth in the
region.
According to Barrick’s chief operating officer
for the Africa and Middle East region, Sebastiaan Bock, the airport
terminal and Academy form part of Barrick’s plan to turn Buzwagi
into a Special Economic Zone. A feasibility study commissioned in
2021 showed that the creation of the Special Economic Zone (SEZ)
had the potential to replace the mine as the region’s economic
driver and could sustainably create 3,000 jobs annually, generate
more than $150,000 each year from service levies for the local
municipality and deliver approximately $4.5 million in employment
taxes a year. The Government of Tanzania approved the conversion of
the mine into a SEZ through a Government Notice that was issued in
February this year. A number of investors have started the process
of setting up manufacturing industries inside this area.
“How we close our mines is just as important to
us as how we build and operate them. Our Buzwagi mine was a
significant economic powerhouse in the region for nearly 15 years
before it poured its last gold in 2021. From our perspective,
however, that is not the end of the story for Buzwagi as we
transform it into an alternative productive asset that will serve
the community for decades to come,” Bock said.
2024 Operating and Capital Expenditure
Guidance
|
GOLD PRODUCTION AND COSTS |
|
|
2024 forecast attributable production (000s oz) |
2024 forecast cost of sales8 ($/oz) |
2024 forecast total cash costs9 ($/oz) |
2024 forecast all-in sustaining costs9 ($/oz) |
|
Carlin (61.5%) |
800 - 880 |
1,270 - 1,370 |
1,030 - 1,110 |
1,430 - 1,530 |
|
Cortez (61.5%)16 |
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 (47.5%)17 |
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
Barrick18,19,20 |
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)10 |
2024 forecast cost of sales11 ($/lb) |
2024 forecast C1 cash costs12 ($/lb) |
2024 forecast all-in sustaining costs12 ($/lb) |
|
Lumwana |
120 - 140 |
2.50 - 2.80 |
1.85 - 2.15 |
3.30 - 3.60 |
|
Zaldívar (50%) |
35 - 40 |
3.70 - 4.00 |
2.80 - 3.10 |
3.40 - 3.70 |
|
Jabal Sayid (50%) |
25 - 30 |
1.75 - 2.05 |
1.40 - 1.70 |
1.70 - 2.00 |
|
Total Attributable to
Barrick20 |
180 - 210 |
2.65 - 2.95 |
2.00 - 2.30 |
3.10 - 3.40 |
|
|
|
|
|
|
|
ATTRIBUTABLE CAPITAL
EXPENDITURES21 |
|
|
|
|
|
($ millions) |
|
|
|
|
Attributable minesite sustaining8,21 |
1,550 - 1,750 |
|
|
|
|
Attributable project8,21 |
950 - 1,150 |
|
|
|
|
Total attributable capital
expenditures21 |
2,500 - 2,900 |
|
|
|
| |
|
|
|
|
2024 OUTLOOK ASSUMPTIONS AND ECONOMIC
SENSITIVITY ANALYSIS
|
|
2024 guidance assumption |
Hypothetical change |
Impact on EBITDA2 (millions) |
Impact on TCC and AISC9,12 |
|
Gold price sensitivity |
$1,900/oz |
+/- $100/oz |
‘+/-$550 |
‘+/-$5/oz |
|
Copper price sensitivity |
$3.50/lb |
+/- $0.25/lb |
‘+/- $110 |
‘+/-$0.01/lb |
| |
|
|
|
|
Production and Cost Summary -
Gold
|
|
For the three months ended |
|
|
|
3/31/24 |
12/31/23 |
% Change |
|
3/31/23 |
% Change |
|
|
Nevada Gold Mines LLC
(61.5%)a |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
420 |
513 |
(18 |
)% |
416 |
1 |
% |
|
Gold produced (000s oz 100% basis) |
683 |
833 |
(18 |
)% |
676 |
1 |
% |
|
Cost of sales ($/oz) |
1,431 |
1,331 |
8 |
% |
1,461 |
(2 |
)% |
|
Total cash costs ($/oz)b |
1,081 |
968 |
12 |
% |
1,074 |
1 |
% |
|
All-in sustaining costs ($/oz)b |
1,536 |
1,366 |
12 |
% |
1,436 |
7 |
% |
|
Carlin (61.5%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
205 |
224 |
(8 |
)% |
166 |
23 |
% |
|
Gold produced (000s oz 100% basis) |
334 |
363 |
(8 |
)% |
270 |
23 |
% |
|
Cost of sales ($/oz) |
1,371 |
1,219 |
12 |
% |
1,449 |
(5 |
)% |
|
Total cash costs ($/oz)b |
1,127 |
1,006 |
12 |
% |
1,215 |
(7 |
)% |
|
All-in sustaining costs ($/oz)b |
1,687 |
1,506 |
12 |
% |
1,689 |
0 |
% |
|
Cortez (61.5%)c |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
119 |
162 |
(27 |
)% |
140 |
(15 |
)% |
|
Gold produced (000s oz 100% basis) |
194 |
263 |
(27 |
)% |
226 |
(15 |
)% |
|
Cost of sales ($/oz) |
1,329 |
1,353 |
(2 |
)% |
1,324 |
0 |
% |
|
Total cash costs ($/oz)b |
946 |
909 |
4 |
% |
913 |
4 |
% |
|
All-in sustaining costs ($/oz)b |
1,341 |
1,309 |
2 |
% |
1,233 |
9 |
% |
|
Turquoise Ridge (61.5%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
62 |
84 |
(26 |
)% |
81 |
(23 |
)% |
|
Gold produced (000s oz 100% basis) |
101 |
137 |
(26 |
)% |
131 |
(23 |
)% |
|
Cost of sales ($/oz) |
1,733 |
1,419 |
22 |
% |
1,412 |
23 |
% |
|
Total cash costs ($/oz)b |
1,359 |
1,046 |
30 |
% |
1,034 |
31 |
% |
|
All-in sustaining costs ($/oz)b |
1,655 |
1,257 |
32 |
% |
1,271 |
30 |
% |
|
Phoenix (61.5%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
34 |
41 |
(17 |
)% |
27 |
26 |
% |
|
Gold produced (000s oz 100% basis) |
54 |
67 |
(17 |
)% |
45 |
26 |
% |
|
Cost of sales ($/oz) |
1,595 |
1,576 |
1 |
% |
2,380 |
(33 |
)% |
|
Total cash costs ($/oz)b |
767 |
787 |
(3 |
)% |
1,198 |
(36 |
)% |
|
All-in sustaining costs ($/oz)b |
944 |
981 |
(4 |
)% |
1,365 |
(31 |
)% |
|
Long Canyon (61.5%)d |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
— |
2 |
(100 |
)% |
2 |
(100 |
)% |
|
Gold produced (000s oz 100% basis) |
— |
3 |
(100 |
)% |
4 |
(100 |
)% |
|
Cost of sales ($/oz) |
— |
2,193 |
(100 |
)% |
1,621 |
(100 |
)% |
|
Total cash costs ($/oz)b |
— |
990 |
(100 |
)% |
579 |
(100 |
)% |
|
All-in sustaining costs ($/oz)b |
— |
1,074 |
(100 |
)% |
629 |
(100 |
)% |
|
Pueblo Viejo (60%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
81 |
90 |
(10 |
)% |
89 |
(9 |
)% |
|
Gold produced (000s oz 100% basis) |
134 |
151 |
(10 |
)% |
149 |
(9 |
)% |
|
Cost of sales ($/oz) |
1,527 |
1,588 |
(4 |
)% |
1,241 |
23 |
% |
|
Total cash costs ($/oz)b |
1,013 |
1,070 |
(5 |
)% |
714 |
42 |
% |
|
All-in sustaining costs ($/oz)b |
1,334 |
1,428 |
(7 |
)% |
1,073 |
24 |
% |
|
Loulo-Gounkoto (80%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
141 |
127 |
11 |
% |
137 |
3 |
% |
|
Gold produced (000s oz 100% basis) |
176 |
159 |
11 |
% |
172 |
3 |
% |
|
Cost of sales ($/oz) |
1,177 |
1,296 |
(9 |
)% |
1,275 |
(8 |
)% |
|
Total cash costs ($/oz)b |
794 |
924 |
(14 |
)% |
855 |
(7 |
)% |
|
All-in sustaining costs ($/oz)b |
1,092 |
1,168 |
(7 |
)% |
1,190 |
(8 |
)% |
|
Kibali (45%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
76 |
93 |
(18 |
)% |
64 |
19 |
% |
|
Gold produced (000s oz 100% basis) |
168 |
206 |
(18 |
)% |
141 |
19 |
% |
|
Cost of sales ($/oz) |
1,200 |
1,141 |
5 |
% |
1,367 |
(12 |
)% |
|
Total cash costs ($/oz)b |
802 |
737 |
9 |
% |
987 |
(19 |
)% |
|
All-in sustaining costs ($/oz)b |
1,048 |
819 |
28 |
% |
1,177 |
(11 |
)% |
|
Veladero (50%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
57 |
55 |
4 |
% |
43 |
33 |
% |
|
Gold produced (000s oz 100% basis) |
115 |
110 |
4 |
% |
86 |
33 |
% |
|
Cost of sales ($/oz) |
1,322 |
1,378 |
(4 |
)% |
1,587 |
(17 |
)% |
|
Total cash costs ($/oz)b |
961 |
1,021 |
(6 |
)% |
1,035 |
(7 |
)% |
|
All-in sustaining costs ($/oz)b |
1,664 |
1,403 |
19 |
% |
1,761 |
(6 |
)% |
|
Porgera (24.5%)e |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
4 |
— |
— |
% |
— |
— |
% |
|
Gold produced (000s oz 100% basis) |
14 |
— |
— |
% |
— |
— |
% |
|
Cost of sales ($/oz) |
— |
— |
— |
% |
— |
— |
% |
|
Total cash costs ($/oz)b |
— |
— |
— |
% |
— |
— |
% |
|
All-in sustaining costs ($/oz)b |
— |
— |
— |
% |
— |
— |
% |
|
Tongon (89.7%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
36 |
42 |
(14 |
)% |
50 |
(28 |
)% |
|
Gold produced (000s oz 100% basis) |
40 |
47 |
(14 |
)% |
55 |
(28 |
)% |
|
Cost of sales ($/oz) |
1,887 |
1,489 |
27 |
% |
1,453 |
30 |
% |
|
Total cash costs ($/oz)b |
1,630 |
1,184 |
38 |
% |
1,182 |
38 |
% |
|
All-in sustaining costs ($/oz)b |
1,773 |
1,586 |
12 |
% |
1,284 |
38 |
% |
|
Hemlo |
|
|
|
|
|
|
|
|
Gold produced (000s oz) |
37 |
34 |
9 |
% |
41 |
(10 |
)% |
|
Cost of sales ($/oz) |
1,715 |
1,618 |
6 |
% |
1,486 |
15 |
% |
|
Total cash costs ($/oz)b |
1,476 |
1,407 |
5 |
% |
1,291 |
14 |
% |
|
All-in sustaining costs ($/oz)b |
1,754 |
1,671 |
5 |
% |
1,609 |
9 |
% |
|
North Mara (84%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
46 |
59 |
(22 |
)% |
68 |
(32 |
)% |
|
Gold produced (000s oz 100% basis) |
55 |
71 |
(22 |
)% |
81 |
(32 |
)% |
|
Cost of sales ($/oz) |
1,678 |
1,420 |
18 |
% |
987 |
70 |
% |
|
Total cash costs ($/oz)b |
1,339 |
1,103 |
21 |
% |
759 |
76 |
% |
|
All-in sustaining costs ($/oz)b |
1,753 |
1,449 |
21 |
% |
1,137 |
54 |
% |
|
Bulyanhulu (84%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
42 |
41 |
2 |
% |
44 |
(5 |
)% |
|
Gold produced (000s oz 100% basis) |
50 |
48 |
2 |
% |
53 |
(5 |
)% |
|
Cost of sales ($/oz) |
1,479 |
1,413 |
5 |
% |
1,358 |
9 |
% |
|
Total cash costs ($/oz)b |
1,044 |
1,002 |
4 |
% |
982 |
6 |
% |
|
All-in sustaining costs ($/oz)b |
1,485 |
1,376 |
8 |
% |
1,332 |
11 |
% |
|
Total Attributable to
Barrickf |
|
|
|
|
|
|
|
|
Gold produced (000s oz) |
940 |
1,054 |
(11 |
)% |
952 |
(1 |
)% |
|
Cost of sales ($/oz)g |
1,425 |
1,359 |
5 |
% |
1,378 |
3 |
% |
|
Total cash costs ($/oz)b |
1,051 |
982 |
7 |
% |
986 |
7 |
% |
|
All-in sustaining costs ($/oz)b |
1,474 |
1,364 |
8 |
% |
1,370 |
8 |
% |
|
a. |
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. |
|
b. |
Further information on these non-GAAP financial performance
measures, including detailed reconciliations, is included in the
endnotes to this press release. |
|
c. |
Includes Goldrush. |
|
d. |
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. |
|
e. |
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. |
|
f. |
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. |
|
g. |
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 |
|
|
|
3/31/24 |
12/31/23 |
% Change |
|
3/31/23 |
% Change |
|
|
Lumwana |
|
|
|
|
|
|
|
|
Copper production (thousands of tonnes)a |
22 |
33 |
(33 |
)% |
22 |
0 |
% |
|
Cost of sales ($/lb) |
3.41 |
2.95 |
16 |
% |
3.56 |
(4 |
)% |
|
C1 cash costs ($/lb)b |
2.52 |
2.14 |
18 |
% |
3.09 |
(18 |
)% |
|
All-in sustaining costs ($/lb)b |
4.33 |
3.38 |
28 |
% |
3.98 |
9 |
% |
|
Zaldívar
(50%) |
|
|
|
|
|
|
|
|
Copper production (thousands of tonnes attributable basis)a |
9 |
10 |
(10 |
)% |
10 |
(10 |
)% |
|
Copper production (thousands of tonnes 100% basis)a |
19 |
20 |
(10 |
)% |
20 |
(10 |
)% |
|
Cost of sales ($/lb) |
3.97 |
3.85 |
3 |
% |
3.73 |
6 |
% |
|
C1 cash costs ($/lb)b |
2.95 |
2.93 |
1 |
% |
2.86 |
3 |
% |
|
All-in sustaining costs ($/lb)b |
3.27 |
3.51 |
(7 |
)% |
3.22 |
2 |
% |
|
Jabal Sayid (50%) |
|
|
|
|
|
|
|
|
Copper production (thousands of tonnes attributable basis)a |
9 |
8 |
13 |
% |
8 |
13 |
% |
|
Copper production (thousands of tonnes 100% basis)a |
17 |
16 |
13 |
% |
17 |
13 |
% |
|
Cost of sales ($/lb) |
1.61 |
1.59 |
1 |
% |
1.53 |
5 |
% |
|
C1 cash costs ($/lb)b |
1.35 |
1.32 |
2 |
% |
1.39 |
(3 |
)% |
|
All-in sustaining costs ($/lb)b |
1.55 |
1.50 |
3 |
% |
1.61 |
(4 |
)% |
|
Total Attributable to Barrick |
|
|
|
|
|
|
|
|
Copper production (thousands of tonnes)a |
40 |
51 |
(22 |
)% |
40 |
0 |
% |
|
Cost of sales ($/lb)c |
3.20 |
2.92 |
10 |
% |
3.22 |
(1 |
)% |
|
C1 cash costs ($/lb)b |
2.40 |
2.17 |
11 |
% |
2.71 |
(11 |
)% |
|
All-in sustaining costs ($/lb)b |
3.59 |
3.12 |
15 |
% |
3.40 |
6 |
% |
|
a. |
Starting in 2024, we have presented our copper production and sales
quantities in tonnes rather than pounds (1 tonne is equivalent to
2,204.6 pounds). Production and sales amounts for prior periods
have been restated for comparative purposes. Our copper cost
metrics are still reported on a per pound basis. |
| b. |
Further information on these
non-GAAP financial performance measures, including detailed
reconciliations, is included in the endnotes to this press
release. |
| c. |
Copper cost of sales per pound is
calculated as cost of sales across our copper operations divided by
pounds sold (both on an attributable basis using Barrick's
ownership share). |
| |
|
Financial and Operating
Highlights
|
|
For the three months ended |
|
|
|
3/31/24 |
|
12/31/23 |
|
% Change |
|
3/31/23 |
|
% Change |
|
|
Financial Results ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
2,747 |
|
3,059 |
|
(10 |
)% |
2,643 |
|
4 |
% |
|
Cost of sales |
1,936 |
|
2,139 |
|
(9 |
)% |
1,941 |
|
0 |
% |
|
Net earningsa |
295 |
|
479 |
|
(38 |
)% |
120 |
|
146 |
% |
|
Adjusted net earningsb |
333 |
|
466 |
|
(29 |
)% |
247 |
|
35 |
% |
|
Attributable EBITDAb |
907 |
|
1,068 |
|
(15 |
)% |
851 |
|
7 |
% |
|
Attributable EBITDA marginc |
41 |
% |
42 |
% |
(2 |
)% |
39 |
% |
5 |
% |
|
Minesite sustaining capital expendituresb,d |
550 |
|
569 |
|
(3 |
)% |
454 |
|
21 |
% |
|
Project capital expendituresb,d |
165 |
|
278 |
|
(41 |
)% |
226 |
|
(27 |
)% |
|
Total consolidated capital expendituresd,e |
728 |
|
861 |
|
(15 |
)% |
688 |
|
6 |
% |
|
Net cash provided by operating activities |
760 |
|
997 |
|
(24 |
)% |
776 |
|
(2 |
)% |
|
Net cash provided by operating activities marginf |
28 |
% |
33 |
% |
(15 |
)% |
29 |
% |
(3 |
)% |
|
Free cash flowb |
32 |
|
136 |
|
(76 |
)% |
88 |
|
(64 |
)% |
|
Net earnings per share (basic and diluted) |
0.17 |
|
0.27 |
|
(37 |
)% |
0.07 |
|
143 |
% |
|
Adjusted net earnings (basic)b per share |
0.19 |
|
0.27 |
|
(30 |
)% |
0.14 |
|
36 |
% |
|
Weighted average diluted common shares (millions of shares) |
1,756 |
|
1,756 |
|
0 |
% |
1,755 |
|
0 |
% |
|
Operating Results |
|
|
|
|
|
|
|
|
|
|
|
Gold production (thousands of ounces)g |
940 |
|
1,054 |
|
(11 |
)% |
952 |
|
(1 |
)% |
|
Gold sold (thousands of ounces)g |
910 |
|
1,042 |
|
(13 |
)% |
954 |
|
(5 |
)% |
|
Market gold price ($/oz) |
2,070 |
|
1,971 |
|
5 |
% |
1,890 |
|
10 |
% |
|
Realized gold priceb,g ($/oz) |
2,075 |
|
1,986 |
|
4 |
% |
1,902 |
|
9 |
% |
|
Gold cost of sales (Barrick’s share)g,h ($/oz) |
1,425 |
|
1,359 |
|
5 |
% |
1,378 |
|
3 |
% |
|
Gold total cash costsb,g ($/oz) |
1,051 |
|
982 |
|
7 |
% |
986 |
|
7 |
% |
|
Gold all-in sustaining costsb,g ($/oz) |
1,474 |
|
1,364 |
|
8 |
% |
1,370 |
|
8 |
% |
|
Copper production (thousands of tonnes)g,i |
40 |
|
51 |
|
(22 |
)% |
40 |
|
0 |
% |
|
Copper sold (thousands of tonnes)g,i |
39 |
|
53 |
|
(26 |
)% |
40 |
|
(3 |
)% |
|
Market copper price ($/lb) |
3.83 |
|
3.70 |
|
4 |
% |
4.05 |
|
(5 |
)% |
|
Realized copper priceb,g ($/lb) |
3.86 |
|
3.78 |
|
2 |
% |
4.20 |
|
(8 |
)% |
|
Copper cost of sales (Barrick’s share)g,j ($/lb) |
3.20 |
|
2.92 |
|
10 |
% |
3.22 |
|
(1 |
)% |
|
Copper C1 cash costsb,g ($/lb) |
2.40 |
|
2.17 |
|
11 |
% |
2.71 |
|
(11 |
)% |
|
Copper all-in sustaining costsb,g ($/lb) |
3.59 |
|
3.12 |
|
15 |
% |
3.40 |
|
6 |
% |
|
|
As at 3/31/24 |
|
As at 12/31/23 |
|
% Change |
|
As at 3/31/23 |
|
% Change |
|
|
Financial Position ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
Debt (current and long-term) |
4,725 |
|
4,726 |
|
0 |
% |
4,777 |
|
(1 |
)% |
|
Cash and equivalents |
3,942 |
|
4,148 |
|
(5 |
)% |
4,377 |
|
(10 |
)% |
|
Debt, net of cash |
783 |
|
578 |
|
35 |
% |
400 |
|
96 |
% |
|
a. |
Net earnings represents net earnings attributable to the equity
holders of the Company. |
| b. |
Further information on these
non-GAAP financial performance measures, including detailed
reconciliations, is included in the endnotes to this press
release. |
| c. |
Represents adjusted EBITDA
divided by revenue. |
| d. |
Amounts presented on a
consolidated cash basis. Project capital expenditures are included
in our calculation of all-in costs, but not included in our
calculation of all-in sustaining costs. |
| e. |
Total consolidated capital
expenditures also includes capitalized interest of $13 million for
the three month period ended March 31, 2024 (December 31,
2023: $14 million and March 31, 2023: $8 million). |
| f. |
Represents net cash provided by
operating activities divided by revenue. |
| g. |
On an attributable basis. |
| h. |
Gold cost of sales per ounce is
calculated as cost of sales across our gold operations (excluding
sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using Barrick's ownership
share). |
| i. |
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. |
| j. |
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 March 31, |
|
|
|
2024 |
|
2023 |
|
|
Revenue (notes 4 and 5) |
$2,747 |
|
$2,643 |
|
|
Costs and expenses (income) |
|
|
|
|
|
Cost of sales (notes 4 and 6) |
1,936 |
|
1,941 |
|
|
General and administrative expenses |
28 |
|
39 |
|
|
Exploration, evaluation and project expenses |
95 |
|
71 |
|
|
Impairment charges (note 8b) |
17 |
|
1 |
|
|
Loss on currency translation |
12 |
|
38 |
|
|
Closed mine rehabilitation |
(2 |
) |
22 |
|
|
Income from equity investees (note 11) |
(48 |
) |
(53 |
) |
|
Other expense (note 8a) |
17 |
|
52 |
|
|
Income before finance costs and income taxes |
$692 |
|
$532 |
|
|
Finance costs, net |
(31 |
) |
(58 |
) |
|
Income before income taxes |
$661 |
|
$474 |
|
|
Income tax expense (note 9) |
(174 |
) |
(205 |
) |
|
Net income |
$487 |
|
$269 |
|
|
Attributable to: |
|
|
|
|
|
Equity holders of Barrick Gold Corporation |
$295 |
|
$120 |
|
|
Non-controlling interests (note 14) |
$192 |
|
$149 |
|
|
|
|
|
|
|
|
Earnings per share data attributable to the equity holders
of Barrick Gold Corporation (note 7) |
|
|
|
|
|
Net income |
|
|
|
|
|
Basic |
$0.17 |
|
$0.07 |
|
|
Diluted |
$0.17 |
|
$0.07 |
|
| |
|
|
|
|
The notes to these unaudited condensed interim
financial statements, which are contained in the First 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 ended March 31, |
|
|
|
2024 |
2023 |
|
|
Net income |
$487 |
$269 |
|
|
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 and $nil |
1 |
— |
|
|
Currency translation adjustments, net of tax $nil and $nil |
— |
(3 |
) |
|
Items that will not be reclassified to profit or
loss: |
|
|
|
Net change on equity investments, net of tax $nil and $nil |
1 |
— |
|
|
Total other comprehensive income (loss) |
2 |
(3 |
) |
|
Total comprehensive income |
$489 |
$266 |
|
|
Attributable to: |
|
|
|
Equity holders of Barrick Gold Corporation |
$297 |
$117 |
|
|
Non-controlling interests |
$192 |
$149 |
|
| |
|
|
|
The notes to these unaudited condensed interim
financial statements, which are contained in the First 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 March 31, |
|
|
|
2024 |
|
2023 |
|
|
OPERATING ACTIVITIES |
|
|
|
Net income |
$487 |
|
$269 |
|
|
Adjustments for the following items: |
|
|
|
Depreciation |
474 |
|
495 |
|
|
Finance costs, net |
31 |
|
58 |
|
|
Impairment charges (note 8b) |
17 |
|
1 |
|
|
Income tax expense (note 9) |
174 |
|
205 |
|
|
Income from equity investees (note 11) |
(48 |
) |
(53 |
) |
|
Gain on sale of non-current assets |
(1 |
) |
(3 |
) |
|
Loss on currency translation |
12 |
|
38 |
|
|
Change in working capital (note 10) |
(241 |
) |
(191 |
) |
|
Other operating activities (note 10) |
(70 |
) |
37 |
|
|
Operating cash flows before interest and income taxes |
835 |
|
856 |
|
|
Interest paid |
(27 |
) |
(23 |
) |
|
Interest received |
68 |
|
49 |
|
|
Income taxes paid1 |
(116 |
) |
(106 |
) |
|
Net cash provided by operating activities |
760 |
|
776 |
|
|
INVESTING ACTIVITIES |
|
|
|
Property, plant and equipment |
|
|
|
Capital expenditures (note 4) |
(728 |
) |
(688 |
) |
|
Sales proceeds |
— |
|
3 |
|
|
Funding of equity method investments (note 11) |
(44 |
) |
— |
|
|
Dividends received from equity method investments (note 11) |
47 |
|
67 |
|
|
Shareholder loan repayments from equity method investments |
45 |
|
— |
|
|
Net cash used in investing activities |
(680 |
) |
(618 |
) |
|
FINANCING ACTIVITIES |
|
|
|
Lease repayments |
(3 |
) |
(4 |
) |
|
Dividends |
(175 |
) |
(175 |
) |
|
Funding from non-controlling interests (note 14) |
22 |
|
— |
|
|
Disbursements to non-controlling interests (note 14) |
(121 |
) |
(62 |
) |
|
Pueblo Viejo JV partner shareholder loan |
(7 |
) |
20 |
|
|
Net cash used in financing activities |
(284 |
) |
(221 |
) |
|
Effect of exchange rate changes on cash and
equivalents |
(2 |
) |
— |
|
|
Net decrease in cash and equivalents |
(206 |
) |
(63 |
) |
|
Cash and equivalents at the beginning of
period |
4,148 |
|
4,440 |
|
|
Cash and equivalents at the end of period |
$3,942 |
|
$4,377 |
|
|
1 |
Income taxes paid excludes $17 million (2023:
$28 million) for the three months ended March 31, 2024 of
income taxes payable that were settled against offsetting value
added tax (“VAT”) receivables. |
| |
|
The notes to these unaudited condensed interim
financial statements, which are contained in the First Quarter
Report 2024 available on our website, are an integral part of these
consolidated financial statements.
Consolidated Balance Sheets
|
Barrick Gold Corporation |
As at March 31, |
|
As at December 31, |
|
|
(in millions of United States dollars) (Unaudited) |
2024 |
|
2023 |
|
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and equivalents |
$3,942 |
|
$4,148 |
|
|
Accounts receivable |
654 |
|
693 |
|
|
Inventories |
1,805 |
|
1,782 |
|
|
Other current assets |
880 |
|
815 |
|
|
Total current assets |
$7,281 |
|
$7,438 |
|
|
Non-current assets |
|
|
|
Non-current portion of inventory |
2,684 |
|
2,738 |
|
|
Equity in investees (note 11) |
4,178 |
|
4,133 |
|
|
Property, plant and equipment |
26,648 |
|
26,416 |
|
|
Intangible assets |
148 |
|
149 |
|
|
Goodwill |
3,581 |
|
3,581 |
|
|
Other assets |
1,323 |
|
1,356 |
|
|
Total assets |
$45,843 |
|
$45,811 |
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$1,360 |
|
$1,503 |
|
|
Debt |
12 |
|
11 |
|
|
Current income tax liabilities |
317 |
|
303 |
|
|
Other current liabilities |
506 |
|
539 |
|
|
Total current liabilities |
$2,195 |
|
$2,356 |
|
|
Non-current liabilities |
|
|
|
Debt |
4,713 |
|
4,715 |
|
|
Provisions |
2,008 |
|
2,058 |
|
|
Deferred income tax liabilities |
3,472 |
|
3,439 |
|
|
Other liabilities |
1,238 |
|
1,241 |
|
|
Total liabilities |
$13,626 |
|
$13,809 |
|
|
Equity |
|
|
|
Capital stock (note 13) |
$28,118 |
|
$28,117 |
|
|
Deficit |
(6,594 |
) |
(6,713 |
) |
|
Accumulated other comprehensive income |
26 |
|
24 |
|
|
Other |
1,913 |
|
1,913 |
|
|
Total equity attributable to Barrick Gold Corporation
shareholders |
$23,463 |
|
$23,341 |
|
|
Non-controlling interests (note 14) |
8,754 |
|
8,661 |
|
|
Total equity |
$32,217 |
|
$32,002 |
|
|
Contingencies and commitments (notes 4 and 15) |
|
|
|
Total liabilities and equity |
$45,843 |
|
$45,811 |
|
| |
|
|
|
|
The notes to these unaudited condensed interim
financial statements, which are contained in the First 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 |
— |
|
— |
|
295 |
|
— |
|
— |
|
295 |
|
192 |
|
487 |
|
|
Total other comprehensive income |
— |
|
— |
|
— |
|
2 |
|
— |
|
2 |
|
— |
|
2 |
|
|
Total comprehensive income |
— |
|
— |
|
295 |
|
2 |
|
— |
|
297 |
|
192 |
|
489 |
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends |
— |
|
— |
|
(175 |
) |
— |
|
— |
|
(175 |
) |
— |
|
(175 |
) |
|
Funding from non-controlling interests (note 14) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
22 |
|
22 |
|
|
Disbursements to non-controlling interests (note 14) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(121 |
) |
(121 |
) |
|
Dividend reinvestment plan (note 13) |
66 |
|
1 |
|
(1 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
|
Total transactions with owners |
66 |
|
1 |
|
(176 |
) |
— |
|
— |
|
(175 |
) |
(99 |
) |
(274 |
) |
|
At March 31, 2024 |
1,755,636 |
|
$28,118 |
|
($6,594 |
) |
$26 |
|
$1,913 |
|
$23,463 |
|
$8,754 |
|
$32,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2023 |
1,755,350 |
|
$28,114 |
|
($7,282 |
) |
$26 |
|
$1,913 |
|
$22,771 |
|
$8,518 |
|
$31,289 |
|
|
Net income |
— |
|
— |
|
120 |
|
— |
|
— |
|
120 |
|
149 |
|
269 |
|
|
Total other comprehensive loss |
— |
|
— |
|
— |
|
(3 |
) |
— |
|
(3 |
) |
— |
|
(3 |
) |
|
Total comprehensive income (loss) |
— |
|
— |
|
120 |
|
(3 |
) |
— |
|
117 |
|
149 |
|
266 |
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends |
— |
|
— |
|
(175 |
) |
— |
|
— |
|
(175 |
) |
— |
|
(175 |
) |
|
Disbursements to non-controlling interests |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(62 |
) |
(62 |
) |
|
Dividend reinvestment plan |
58 |
|
1 |
|
(1 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
|
Total transactions with owners |
58 |
|
1 |
|
(176 |
) |
— |
|
— |
|
(175 |
) |
(62 |
) |
(237 |
) |
|
At March 31, 2023 |
1,755,408 |
|
$28,115 |
|
($7,338 |
) |
$23 |
|
$1,913 |
|
$22,713 |
|
$8,605 |
|
$31,318 |
|
|
1 |
Includes cumulative translation losses at March 31, 2024:
$95 million (December 31, 2023: $95 million;
March 31, 2023: $95 million). |
|
2 |
Includes additional paid-in capital as at March 31, 2024:
$1,875 million (December 31, 2023: $1,875 million;
March 31, 2023: $1,875 million). |
|
|
|
The notes to these unaudited condensed interim
financial statements, which are contained in the First 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 1 “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 |
|
|
|
3/31/24 |
|
12/31/23 |
|
3/31/23 |
|
|
Net earnings attributable to equity holders of the Company |
295 |
|
479 |
|
120 |
|
|
Impairment charges related to intangibles, goodwill, property,
plant and equipment, and investmentsa |
17 |
|
289 |
|
1 |
|
|
Acquisition/disposition gainsb |
(1 |
) |
(354 |
) |
(3 |
) |
|
Loss on currency translation |
12 |
|
37 |
|
38 |
|
|
Significant tax adjustmentsc |
29 |
|
120 |
|
48 |
|
|
Other (income) expense adjustmentsd |
(9 |
) |
41 |
|
63 |
|
|
Non-controlling intereste |
(4 |
) |
(89 |
) |
(6 |
) |
|
Tax effecte |
(6 |
) |
(57 |
) |
(14 |
) |
|
Adjusted net earnings |
333 |
|
466 |
|
247 |
|
|
Net earnings per sharef |
0.17 |
|
0.27 |
|
0.07 |
|
|
Adjusted net earnings per sharef |
0.19 |
|
0.27 |
|
0.14 |
|
|
a. |
For the three month period ended March 31, 2024, net impairment
charges were mainly related to miscellaneous property, plant and
equipment assets. For the three month period ended December 31,
2023, net impairment charges mainly related to a long-lived asset
impairment at Long Canyon. |
| b. |
For the three month period ended
December 31, 2023, acquisition/disposition gains mainly related to
a gain on the reopening of the Porgera mine as the conditions for
the reopening were completed on December 22, 2023. |
| c. |
For the three month period ended
March 31, 2024, significant tax adjustments were mainly related to
the de-recognition of deferred tax assets and the re-measurement of
deferred tax balances. Significant tax adjustments for the three
month period ended December 31, 2023 related to foreign currency
translation gains and losses on tax balances; the impact of prior
year adjustments; and the recognition and derecognition of deferred
tax assets. |
| d. |
For the three month periods ended
March 31, 2024 and December 31, 2023, other (income) expense
adjustments mainly related to changes in the discount rate
assumptions on our closed mine rehabilitation provision. The three
month period ended December 31, 2023 was further impacted by care
and maintenance expenses at Porgera. Other (income) expense
adjustments for the three month period ended March 31, 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. |
| e. |
Non-controlling interest and tax
effect for the three month period ended March 31, 2024 primarily
relates to net impairment charges. |
| f. |
Calculated using weighted average
number of shares outstanding under the basic method of earnings per
share. |
| |
|
Endnote 2 EBITDA is a non-GAAP
financial performance measure, which excludes the following from
net earnings: income tax expense; finance costs; finance income;
and depreciation. Management believes that EBITDA is a valuable
indicator of our ability to generate liquidity by producing
operating cash flow to fund working capital needs, service debt
obligations, and fund capital expenditures. Management uses EBITDA
for this purpose. Adjusted EBITDA removes the effect of impairment
charges; acquisition/disposition gains/losses; foreign currency
translation gains/losses; and other expense adjustments. We also
remove the impact of the income tax expense, finance costs, finance
income and depreciation incurred in our equity method accounted
investments. We believe these items provide a greater level of
consistency with the adjusting items included in our adjusted net
earnings reconciliation, with the exception that these amounts are
adjusted to remove any impact on finance costs/income, income tax
expense and/or depreciation as they do not affect EBITDA. We
believe this additional information will assist analysts, investors
and other stakeholders of Barrick in better understanding our
ability to generate liquidity from our full business, including
equity method investments, by excluding these amounts from the
calculation as they are not indicative of the performance of our
core mining business and not necessarily reflective of the
underlying operating results for the periods presented. In the
third quarter of 2023 we introduced attributable EBITDA, which
removes the non-controlling interest portion from our adjusted
EBITDA measure. Prior periods have been presented to allow for
comparability. We believe this additional information will assist
analysts, investors and other stakeholders of Barrick in better
understanding our ability to generate liquidity from our
attributable business and which is aligned with how we present our
forward looking guidance on gold ounces and copper pounds produced.
EBITDA, adjusted EBITDA, and attributable EBITDA are intended to
provide additional information only and do not have any
standardized definition under IFRS and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Other companies may calculate EBITDA,
adjusted EBITDA, and attributable EBITDA differently. Further
details on these 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 |
|
|
3/31/24 |
12/31/23 |
3/31/23 |
|
Net earnings |
487 |
|
597 |
|
269 |
|
|
Income tax expense |
174 |
|
174 |
|
205 |
|
|
Finance costs, neta |
10 |
|
(7 |
) |
37 |
|
|
Depreciation |
474 |
|
564 |
|
495 |
|
|
EBITDA |
1,145 |
|
1,328 |
|
1,006 |
|
|
Impairment charges of non-current assetsb |
17 |
|
289 |
|
1 |
|
|
Acquisition/disposition gainsc |
(1 |
) |
(354 |
) |
(3 |
) |
|
Loss on currency translation |
12 |
|
37 |
|
38 |
|
|
Other (income) expense adjustmentsd |
(9 |
) |
41 |
|
63 |
|
|
Income tax expense, net finance costsa, and depreciation from
equity investees |
102 |
|
118 |
|
78 |
|
|
Adjusted EBITDA |
1,266 |
|
1,459 |
|
1,183 |
|
|
Non-controlling Interests |
(359 |
) |
(391 |
) |
(332 |
) |
|
Attributable EBITDA |
907 |
|
1,068 |
|
851 |
|
|
Revenues - as adjustede |
2,222 |
|
2,514 |
|
2,188 |
|
|
Attributable EBITDA marginf |
41 |
% |
42 |
% |
39 |
% |
|
a. |
Finance costs exclude accretion. |
| b. |
For the three month period ended
March 31, 2024, net impairment charges were mainly related to
miscellaneous property, plant and equipment assets. For the three
month period ended December 31, 2023, net impairment charges mainly
related to a long-lived asset impairment at Long Canyon. |
| c. |
For the three month period ended
December 31, 2023, acquisition/disposition gains mainly related to
a gain on the reopening of the Porgera mine as the conditions for
the reopening were completed on December 22, 2023. |
| d. |
For the three month periods ended
March 31, 2024 and December 31, 2023, other (income) expense
adjustments mainly related to changes in the discount rate
assumptions on our closed mine rehabilitation provision. The three
month period ended December 31, 2023 was further impacted by care
and maintenance expenses at Porgera. Other (income) expense
adjustments for the three month period ended March 31, 2023 mainly
related to the $30 million commitment we made towards the expansion
of education infrastructure in Tanzania, per our community
investment obligations under the Twiga partnership. |
| e. |
Refer to Reconciliation of Sales
to Realized Price per ounce/pound on page 67 of Barrick’s Q1 2024
MD&A. |
| f. |
Represents attributable EBITDA
divided by revenues - as adjusted. |
| |
|
Endnote 3 On an attributable
basis.
Endnote 4 “Realized price” is a
non-GAAP financial performance measure which excludes from sales:
treatment and refining charges; and cumulative catch-up adjustment
to revenue relating to our streaming arrangements. We believe this
provides investors and analysts with a more accurate measure with
which to compare to market gold and copper prices and to assess our
gold and copper sales performance. For those reasons, management
believes that this measure provides a more accurate reflection of
our company’s past performance and is a better indicator of its
expected performance in future periods. The realized price measure
is intended to provide additional information, and does not have
any standardized definition under IFRS and should not be considered
in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. The measure is not necessarily
indicative of sales as determined under IFRS. Other companies may
calculate this measure differently. The following table reconciles
realized prices to the most directly comparable IFRS measure.
Further details on these non-GAAP financial performance measures
are provided in the MD&A accompanying Barrick’s financial
statements filed from time to time on SEDAR+ at www.sedarplus.ca
and on EDGAR at www.sec.gov.
Reconciliation of Sales to Realized Price
per ounce/pound
|
($ millions, except per ounce/pound information in dollars) |
Gold |
Copper |
|
|
For the three months ended |
|
|
3/31/24 |
|
12/31/23 |
|
3/31/23 |
|
3/31/24 |
12/31/23 |
3/31/23 |
|
Sales |
2,528 |
|
2,767 |
|
2,411 |
|
163 |
226 |
171 |
|
Sales applicable to non-controlling interests |
(795 |
) |
(872 |
) |
(723 |
) |
0 |
0 |
0 |
|
Sales applicable to equity method investmentsa,b |
151 |
|
183 |
|
126 |
|
136 |
168 |
160 |
|
Sales applicable to sites in closure or care and maintenancec |
(2 |
) |
(2 |
) |
(7 |
) |
0 |
0 |
0 |
|
Treatment and refinement charges |
7 |
|
8 |
|
7 |
|
34 |
51 |
43 |
|
Otherd |
0 |
|
(15 |
) |
0 |
|
0 |
0 |
0 |
|
Revenues – as adjusted |
1,889 |
|
2,069 |
|
1,814 |
|
333 |
445 |
374 |
|
Ounces/pounds sold (000s ounces/millions pounds)c |
910 |
|
1,042 |
|
954 |
|
86 |
117 |
89 |
|
Realized gold/copper price per ounce/pounde |
2,075 |
|
1,986 |
|
1,902 |
|
3.86 |
3.78 |
4.20 |
|
a. |
Represents sales of $151 million, for the three month period ended
March 31, 2024 (December 31, 2023: $183 million and
March 31, 2023: $126 million) applicable to our 45%
equity method investment in Kibali for gold. Represents sales of
$80 million for the three month period ended March 31,
2024 (December 31, 2023: $98 million and March 31, 2023:
$98 million) applicable to our 50% equity method investment in
Zaldívar and $62 million (December 31, 2023: $77 million and
March 31, 2023: $69 million), applicable to our 50% equity
method investment in Jabal Sayid for copper. |
|
b. |
Sales applicable to equity method investments are net of treatment
and refinement charges. |
|
c. |
On an attributable basis. Excludes Pierina, which was producing
incidental ounces until December 31, 2023 while in closure. It also
excludes Long Canyon which is producing residual ounces from the
leach pad while in care and maintenance. |
|
d. |
Represents a cumulative catch-up adjustment to revenue relating to
our streaming arrangements. Refer to note 2e of the 2023 Annual
Financial Statements for more information. |
|
e. |
Realized price per ounce/pound may not calculate based on amounts
presented in this table due to rounding. |
|
|
|
Endnote 5 Net earnings
represents net earnings attributable to the equity holders of the
Company.
Endnote 6 “Free cash flow” is a
non-GAAP financial measure that deducts capital expenditures from
net cash provided by operating activities. Management believes this
to be a useful indicator of our ability to operate without reliance
on additional borrowing or usage of existing cash. Free cash flow
is intended to provide additional information only and does not
have any standardized definition under IFRS, and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The measure is not
necessarily indicative of operating profit or cash flow from
operations as determined under IFRS. Other companies may calculate
this measure differently. Further details on this non-GAAP
financial performance measure are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. The
following table reconciles this non-GAAP financial measure to the
most directly comparable IFRS measure.
Reconciliation of Net Cash Provided by
Operating Activities to Free Cash Flow
|
($ millions) |
For the three months ended |
|
|
|
3/31/24 |
|
12/31/23 |
|
3/31/23 |
|
|
Net cash provided by operating activities |
760 |
|
997 |
|
776 |
|
|
Capital expenditures |
(728 |
) |
(861 |
) |
(688 |
) |
|
Free cash flow |
32 |
|
136 |
|
88 |
|
| |
|
|
|
|
|
|
Endnote 7 These amounts are
presented on the same basis as our guidance. Minesite sustaining
capital expenditures and project capital expenditures are non-GAAP
financial measures. Capital expenditures are classified into
minesite sustaining capital expenditures or project capital
expenditures depending on the nature of the expenditure. Minesite
sustaining capital expenditures is the capital spending required to
support current production levels. Project capital expenditures
represent the capital spending at new projects and major, discrete
projects at existing operations intended to increase net present
value through higher production or longer mine life. Management
believes this to be a useful indicator of the purpose of capital
expenditures and this distinction is an input into the calculation
of all-in sustaining costs per ounce and all-in costs per ounce.
Classifying capital expenditures is intended to provide additional
information only and does not have any standardized definition
under IFRS, and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. Other companies may calculate these measures differently. The
following table reconciles these non-GAAP financial performance
measures to the most directly comparable IFRS measure.
Reconciliation of the Classification of
Capital Expenditures
|
($ millions) |
For the three months ended |
|
|
3/31/24 |
12/31/23 |
3/31/23 |
|
Minesite sustaining capital expenditures |
550 |
569 |
454 |
|
Project capital expenditures |
165 |
278 |
226 |
|
Capitalized interest |
13 |
14 |
8 |
|
Total consolidated capital expenditures |
728 |
861 |
688 |
| |
|
|
|
Endnote 8 Gold cost of sales
per ounce is calculated as cost of sales across our gold operations
(excluding sites in closure or care and maintenance) divided by
ounces sold (both on an attributable basis using Barrick's
ownership share).
Endnote 9 “Total cash costs”
per ounce, “All-in sustaining costs” per ounce and “All-in costs”
per ounce are non-GAAP financial performance measures which are
calculated based on the definition published by the World Gold
Council (a market development organization for the gold industry
comprised of and funded by gold mining companies from around the
world, including Barrick, the “WGC”). The WGC is not a regulatory
organization. Management uses these measures to monitor the
performance of our gold mining operations and 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 |
|
|
|
Footnote |
3/31/24 |
|
12/31/23 |
|
3/31/23 |
|
|
Cost of sales applicable to gold production |
|
1,761 |
|
1,928 |
|
1,761 |
|
|
Depreciation |
|
(407 |
) |
(471 |
) |
(445 |
) |
|
Cash cost of sales applicable to equity method investments |
|
56 |
|
65 |
|
63 |
|
|
By-product credits |
|
(56 |
) |
(66 |
) |
(61 |
) |
|
Non-recurring items |
a |
0 |
|
0 |
|
0 |
|
|
Other |
b |
2 |
|
6 |
|
0 |
|
|
Non-controlling interests |
c |
(400 |
) |
(432 |
) |
(378 |
) |
|
Total cash costs |
|
956 |
|
1,030 |
|
940 |
|
|
General & administrative costs |
|
28 |
|
29 |
|
39 |
|
|
Minesite exploration and evaluation costs |
d |
13 |
|
4 |
|
11 |
|
|
Minesite sustaining capital expenditures |
e |
550 |
|
569 |
|
454 |
|
|
Sustaining leases |
|
6 |
|
7 |
|
7 |
|
|
Rehabilitation - accretion and amortization (operating sites) |
f |
17 |
|
20 |
|
14 |
|
|
Non-controlling interest, copper operations and other |
g |
(224 |
) |
(230 |
) |
(159 |
) |
|
All-in sustaining costs |
|
1,346 |
|
1,429 |
|
1,306 |
|
|
Global exploration and evaluation and project expense |
d |
82 |
|
99 |
|
60 |
|
|
Community relations costs not related to current operations |
|
0 |
|
1 |
|
0 |
|
|
Project capital expenditures |
e |
165 |
|
278 |
|
226 |
|
|
Non-sustaining leases |
|
0 |
|
0 |
|
0 |
|
|
Rehabilitation - accretion and amortization (non-operating
sites) |
f |
7 |
|
7 |
|
6 |
|
|
Non-controlling interest and copper operations and other |
g |
(92 |
) |
(112 |
) |
(88 |
) |
|
All-in costs |
|
1,508 |
|
1,702 |
|
1,510 |
|
|
Ounces sold - attributable basis (000s ounces) |
h |
910 |
|
1,042 |
|
954 |
|
|
Cost of sales per ounce |
i,j |
1,425 |
|
1,359 |
|
1,378 |
|
|
Total cash costs per ounce |
j |
1,051 |
|
982 |
|
986 |
|
|
Total cash costs per ounce (on a co-product basis) |
j,k |
1,093 |
|
1,026 |
|
1,030 |
|
|
All-in sustaining costs per ounce |
j |
1,474 |
|
1,364 |
|
1,370 |
|
|
All-in sustaining costs per ounce (on a co-product basis) |
j,k |
1,516 |
|
1,408 |
|
1,414 |
|
|
All-in costs per ounce |
j |
1,657 |
|
1,627 |
|
1,583 |
|
|
All-in costs per ounce (on a co-product basis) |
j,k |
1,699 |
|
1,671 |
|
1,627 |
|
|
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 month period ended March 31,
2024 include the removal of total cash costs and by-product credits
associated with Pierina of $nil (December 31, 2023: $nil;
March 31, 2023: $3 million), which was producing incidental
ounces until December 31, 2023. |
|
c. |
Non-controlling interests |
|
|
Non-controlling interests include non-controlling interests related
to gold production of $542 million for the three month period ended
March 31, 2024 (December 31, 2023: $594 million and
March 31, 2023: $529 million). Non-controlling interests
include NGM, Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara and
Bulyanhulu. Refer to Note 4 to the Financial Statements for further
information. |
|
d. |
Exploration and evaluation costs |
|
|
Exploration, evaluation and project expenses are presented as
minesite sustaining if it supports current mine operations and
project if it relates to future projects. Refer to page 48 of
Barrick’s Q1 2014 MD&A. |
|
e. |
Capital expenditures |
|
|
Capital expenditures are related to our gold sites only and are
split between minesite sustaining and project capital expenditures.
Project capital expenditures are capital spending at new projects
and major, discrete projects at existing operations intended to
increase net present value through higher production or longer mine
life. Significant projects in the current year include the plant
expansion project at Pueblo Viejo and the solar project at NGM.
Refer to page 47 of Barrick’s Q1 2024 MD&A. |
|
f. |
Rehabilitation—accretion and amortization |
|
|
Includes depreciation on the assets related to rehabilitation
provisions of our gold operations and accretion on the
rehabilitation provision of our gold operations, split between
operating and non-operating sites. |
|
g. |
Non-controlling interest and copper
operations |
|
|
Removes general and administrative costs related to
non-controlling interests and copper based on a percentage
allocation of revenue. Also removes exploration, evaluation and
project expenses, rehabilitation costs and capital expenditures
incurred by our copper sites and the non-controlling interest of
NGM, Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara and
Bulyanhulu operating segments. It also includes capital
expenditures applicable to our equity method investment in Kibali.
Figures remove the impact of Pierina up until December 31, 2023.
The impact is summarized as the following: |
|
|
|
|
($ millions) |
For the three months ended |
|
|
Non-controlling interest, copper operations and other |
3/31/24 |
|
12/31/23 |
|
3/31/23 |
|
|
General & administrative costs |
(4 |
) |
7 |
|
(6 |
) |
|
Minesite exploration and evaluation expenses |
(2 |
) |
(2 |
) |
(4 |
) |
|
Rehabilitation - accretion and amortization (operating sites) |
(5 |
) |
(6 |
) |
(5 |
) |
|
Minesite sustaining capital expenditures |
(213 |
) |
(229 |
) |
(144 |
) |
|
All-in sustaining costs total |
(224 |
) |
(230 |
) |
(159 |
) |
|
Global exploration and evaluation and project expense |
(44 |
) |
(40 |
) |
(12 |
) |
|
Project capital expenditures |
(48 |
) |
(72 |
) |
(76 |
) |
|
All-in costs total |
(92 |
) |
(112 |
) |
(88 |
) |
|
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 for the
three month period ended March 31, 2024 (December 31,
2023: $nil and March 31, 2023: $3 million), which was
producing incidental ounces up until December 31, 2023. Gold cost
of sales per ounce is calculated as cost of sales across our gold
operations (excluding sites in closure or care and maintenance)
divided by ounces sold (both on an attributable basis using
Barrick's ownership share). |
|
j. |
Per ounce figures |
|
|
Cost of sales per ounce, total cash costs per ounce, all-in
sustaining costs per ounce and all-in costs per ounce may not
calculate based on amounts presented in this table due to
rounding. |
|
k. |
Co-product costs per ounce |
|
|
Total cash costs per ounce, all-in sustaining costs per ounce and
all-in costs per ounce presented on a co-product basis removes the
impact of by-product credits of our gold production (net of
non-controlling interest) calculated as: |
|
|
|
| |
($ millions) |
For the three months ended |
|
| |
|
3/31/24 |
|
12/31/23 |
|
3/31/23 |
|
|
|
By-product credits |
56 |
|
66 |
|
61 |
|
| |
Non-controlling interest |
(18 |
) |
(20 |
) |
(19 |
) |
| |
By-product credits (net of non-controlling interest) |
38 |
|
46 |
|
42 |
|
| |
|
|
|
|
|
|
|
Endnote 10 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). Our
copper cost metrics are still reported on a per pound basis.
Endnote 11 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 12 “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 |
|
|
|
3/31/24 |
|
12/31/23 |
|
3/31/23 |
|
|
Cost of sales |
168 |
|
209 |
|
174 |
|
|
Depreciation/amortization |
(60 |
) |
(86 |
) |
(44 |
) |
|
Treatment and refinement charges |
34 |
|
51 |
|
43 |
|
|
Cash cost of sales applicable to equity method investments |
82 |
|
103 |
|
87 |
|
|
Less: royalties |
(12 |
) |
(16 |
) |
(15 |
) |
|
By-product credits |
(5 |
) |
(5 |
) |
(4 |
) |
|
Other |
0 |
|
0 |
|
0 |
|
|
C1 cash costs |
207 |
|
256 |
|
241 |
|
|
General & administrative costs |
4 |
|
6 |
|
6 |
|
|
Rehabilitation - accretion and amortization |
2 |
|
2 |
|
2 |
|
|
Royalties |
12 |
|
16 |
|
15 |
|
|
Minesite exploration and evaluation costs |
0 |
|
0 |
|
2 |
|
|
Minesite sustaining capital expenditures |
83 |
|
84 |
|
33 |
|
|
Sustaining leases |
1 |
|
3 |
|
3 |
|
|
All-in sustaining costs |
309 |
|
367 |
|
302 |
|
|
Tonnes sold - attributable basis (thousands of tonnes) |
39 |
|
53 |
|
40 |
|
|
Pounds sold - attributable basis (millions pounds) |
86 |
|
117 |
|
89 |
|
|
Cost of sales per pounda,b |
3.20 |
|
2.92 |
|
3.22 |
|
|
C1 cash costs per pounda |
2.40 |
|
2.17 |
|
2.71 |
|
|
All-in sustaining costs per pounda |
3.59 |
|
3.12 |
|
3.40 |
|
|
a. |
Cost of sales per pound, C1 cash costs per pound and all-in
sustaining costs per pound may not calculate based on amounts
presented in this table due to rounding. |
|
b. |
Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share). |
|
|
|
Endnote 13 A 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 14 Indicative copper
production profile from Lumwana, which is conceptual in nature.
Subject to change following completion of the pre-feasibility
study.
Endnote 15 Refer 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 16 Includes
Goldrush.
Endnote 17 Porgera 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 18 Total cash costs and
all-in sustaining costs per ounce include costs allocated to
non-operating sites.
Endnote 19 Operating division
guidance ranges reflect expectations at each individual operating
division and may not add up to the company wide guidance range
total. Guidance ranges exclude Pierina which is producing
incidental ounces while in closure.
Endnote 20 Includes corporate
administration costs.
Endnote 21 Attributable 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.
Shares Listed
GOLD The New York Stock Exchange
ABX The Toronto Stock
Exchange
Transfer Agents and Registrars
TSX Trust Company 301 – 100 Adelaide Street West
Toronto, Ontario M5H 4H1 Canada or Equiniti Trust Company,
LLC 6201 – 15th Avenue Brooklyn, New York 11219 USA
Telephone: 1 800 387 0825 Fax: 1 888 249 6189
Email: shareholderinquiries@tmx.com Website:
www.tsxtrust.com
Corporate Office Barrick
Gold Corporation 161 Bay Street, Suite 3700 Toronto,
Ontario M5J 2S1 Canada
Telephone: +1 416 861 9911 Email:
investor@barrick.com Website: www.barrick.com
Enquiries President and Chief
Executive Officer Mark Bristow +1 647 205 7694 +44
7880 711 386
Senior Executive Vice-President and Chief
Financial Officer Graham Shuttleworth +1 647 262
2095 +44 7797 711 338
Investor and Media Relations Kathy du
Plessis +44 207 557 7738 Email:
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”, “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, including discoveries
at Turqouise Ridge and Kibali; our ability to identify new Tier One
assets and the potential for existing assets to attain Tier One
status; Barrick’s copper strategy; our plans and expected
completion and benefits of our growth projects; potential
mineralization and metal or mineral recoveries; the completion of
the TS Solar facility at Neveda Gold Mines; targeted first
production for the Reko Diq project and the Lumwana Super Pit
expansion project; projected annual production for the Lumwana
Super Pit expansion project and the Goldrush project; the
resumption and ramp up of operations at the Porgera mine; our
pipeline of high confidence projects at or near existing
operations, including Fourmile; 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 renewable energy
initiatives, and biodiversity initiatives; the potential to
transform Buzwagi into a Special Economic Zone; Barrick’s
performance dividend policy; 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.
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