Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick” or the
“Company”) today announced preliminary full year and fourth quarter
2020 results which indicate that it has met its 2020 guidance
targets. Preliminary gold production for the full year of 4.8
million ounces is at the midpoint of the 4.6 to 5.0 million ounce
guidance range, while preliminary copper production of 457 million
pounds is also within the guidance range of 440 to 500 million
pounds.
The preliminary Q4 results show sales for the quarter of 1.19
million ounces of gold and 108 million pounds of copper, as well as
preliminary Q4 production of 1.21 million ounces of gold and 119
million pounds of copper. The average market price for gold in Q4
was $1,874 per ounce, while the average market price for copper was
$3.25 per pound.
Preliminary Q4 gold production was higher than Q3 2020, mainly
due to a strong performance from Pueblo Viejo, the ramp-up of
mining operations at Bulyanhulu and ongoing improvement at
Turquoise Ridge. Preliminary Q4 gold sales were lower than Q3 2020
as third quarter sales included the export of the remaining
stockpiled concentrate in Tanzania. Q4 gold cost of sales per
ounce1 and total cash costs per ounce2 are expected to be in line
with the prior quarter and gold all-in sustaining costs per ounce2
are expected to be 3-5% lower than in Q3 2020.
Preliminary Q4 copper production was higher than Q3 2020
following completion of plant maintenance at Lumwana in the third
quarter. Preliminary Q4 copper sales were lower than the previous
quarter, primarily due to the timing of shipments at Lumwana. Q4
copper cost of sales per pound1 is expected to be 4-6% higher, Q4
copper C1 cash costs per pound2 are expected to be 10-12% higher
and copper all-in sustaining costs per pound2 are expected to be
4-6% higher than Q3 2020. Driving these changes are higher
operating costs at Lumwana and Zaldívar, partially offset by lower
depreciation and lower sustaining capital at Lumwana.
Barrick will provide additional discussion and analysis
regarding its fourth quarter production and sales when the Company
reports its quarterly and full year 2020 results before North
American markets open on February 18, 2021.
The following table includes preliminary gold and copper
production and sales results from Barrick's operations:
|
Three months ended |
Twelve months ended |
|
December 31, 2020 |
December 31, 2020 |
|
Production |
Sales |
Production |
Sales |
Gold (equity ounces (000)) |
|
|
Carlin3 (61.5%) |
260 |
259 |
1,024 |
1,024 |
Cortez (61.5%) |
118 |
116 |
491 |
491 |
Turquoise Ridge (61.5%) |
91 |
90 |
330 |
332 |
Phoenix (61.5%) |
26 |
26 |
126 |
126 |
Long Canyon (61.5%) |
51 |
51 |
160 |
161 |
Nevada Gold Mines (61.5%) |
546 |
542 |
2,131 |
2,134 |
Pueblo Viejo (60%) |
159 |
153 |
542 |
541 |
Loulo-Gounkoto (80%) |
123 |
126 |
544 |
542 |
Kibali (45%) |
92 |
89 |
364 |
364 |
Tongon (89.7%) |
66 |
64 |
255 |
255 |
North Mara (84%) |
61 |
63 |
261 |
269 |
Veladero (50%) |
58 |
51 |
226 |
186 |
Hemlo |
57 |
57 |
223 |
224 |
Bulyanhulu (84%) |
23 |
20 |
44 |
103 |
Buzwagi (84%) |
21 |
21 |
84 |
174 |
Porgera (47.5%) |
0 |
0 |
86 |
87 |
Total Gold |
1,206 |
1,186 |
4,760 |
4,879 |
|
|
|
|
|
|
|
|
|
|
Copper (equity pounds (millions)) |
|
|
Lumwana |
78 |
65 |
276 |
277 |
Zaldívar (50%) |
23 |
25 |
106 |
106 |
Jabal Sayid (50%) |
18 |
18 |
75 |
74 |
Total Copper |
119 |
108 |
457 |
457 |
Fourth Quarter and Full Year 2020
Results
Barrick will release its fourth quarter and full year 2020
results before market open on February 18, 2021. President and CEO
Mark Bristow will host an interactive webinar on the results at
11:00 EST / 16:00 UTC. The presentation will be linked to the
webinar and conference call. Participants will be able to ask
questions.
Go to the webinarUS and Canada
(toll-free) 1 800 319 4610UK (toll-free) 0808 101 2791International
(toll) +1 416 915 3239
The fourth quarter and full year 2020 presentation materials
will be available on Barrick’s website at www.barrick.com.
The webinar will remain on the website for later viewing, and
the conference call will be available for replay by telephone at 1
855 669 9658 (US and Canada) and +1 604 674 8052 (international),
access code 5232.
Enquiries:
Claudia Pitre Analyst, Investor Relations and
Corporate Access+1 416 307 5105cpitre@barrick.com
Kathy du Plessis Investor and Media
Relations+44 20 7557 7738barrick@dpapr.com
Technical Information
The scientific and technical information contained in this news
release has been reviewed and approved by: Steven Yopps, MMSA,
Manager of Growth Projects, Nevada Gold Mines; Chad Yuhasz, P.Geo,
Mineral Resource Manager, Latin America and Asia Pacific; and Simon
Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral Resources Manager,
Africa and Middle East – each a “Qualified Person” as defined in
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
Endnote 1
Cost of sales applicable to gold per ounce is calculated using
cost of sales applicable to gold on an attributable basis (removing
the non-controlling interest of 40% Pueblo Viejo, 38.5% Nevada Gold
Mines, 63.1% South Arturo, 20% Loulo-Gounkoto, 16% North Mara,
Bulyanhulu and Buzwagi and 10.3% of Tongon and including our
proportionate share of cost of sales attributable to equity method
investments (Kibali) in cost of sales), divided by attributable
gold ounces. Cost of sales applicable to copper per pound is
calculated using cost of sales applicable to copper including our
proportionate share of cost of sales attributable to equity method
investments (Zaldívar and Jabal Sayid), divided by consolidated
copper pounds (including our proportionate share of copper pounds
from our equity method investments).
Endnote 2
Total cash costs per ounce, all-in sustaining costs per ounce
and all-in costs per ounce are non-GAAP financial 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 is not a regulatory
organization. Management uses these measures to monitor the
performance of our gold mining operations and its ability to
generate positive cash flow, both on an individual site basis and
an overall company basis.
Total cash costs start with our cost of sales related to gold
production and removes depreciation, the non-controlling interest
of cost of sales and includes by-product credits. All-in sustaining
costs start with total cash costs and include 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.
We believe that our use of total cash costs, all-in sustaining
costs and all-in costs 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. Due to the
capital-intensive nature of the industry and the long useful lives
over which these items are depreciated, there can be a significant
timing difference between net earnings calculated in accordance
with IFRS and the amount of free cash flow that is being generated
by a mine and therefore we believe these measures are useful
non-GAAP operating metrics and supplement our IFRS disclosures.
These measures are not representative of all of our cash
expenditures as they do not include income tax payments, interest
costs or dividend payments. These measures do not include
depreciation or amortization.
Total cash costs per ounce, all-in sustaining costs and all-in
costs 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.
C1 cash costs per pound and all-in sustaining costs per pound
are non-GAAP financial measures related to our copper mine
operations. We believe that C1 cash costs per pound enables
investors to better understand the performance of our copper
operations in comparison to other copper producers who present
results on a similar basis. C1 cash costs per pound excludes
royalties and production taxes and non-routine charges as they are
not direct production costs. All-in sustaining costs per pound is
similar to the gold all-in sustaining costs metric and management
uses this to better evaluate the costs of copper production. We
believe this measure enables investors to better understand the
operating performance of our copper mines as this measure reflects
all of the sustaining expenditures incurred in order to produce
copper. All-in sustaining costs per pound includes C1 cash costs,
sustaining capital expenditures, sustaining leases, general and
administrative costs, minesite exploration and evaluation costs,
royalties and production taxes, reclamation cost accretion and
amortization and write-downs taken on inventory to net realizable
value.
Barrick will provide a full reconciliation of these non-GAAP
financial measures when the Company reports its quarterly results
on February 18, 2021.
Endnote 3
Includes Nevada Gold Mines' 60% equity share of South
Arturo.
Cautionary Statements Regarding Preliminary
Fourth Quarter and Full Year Production, Sales and
Costs for 2020, and Forward-Looking Information
Barrick cautions that, whether or not expressly stated, all full
year and fourth quarter figures contained in this press release
including, without limitation, production levels, sales and
associated costs are preliminary, and reflect our expected full
year and fourth quarter results as of the date of this press
release. Actual reported full year and fourth quarter production
levels, sales and associated costs are subject to management’s
final review, as well as review by the Company’s independent
accounting firm, and may vary significantly from those expectations
because of a number of factors, including, without limitation,
additional or revised information, and changes in accounting
standards or policies, or in how those standards are applied.
Barrick will provide additional discussion and analysis and other
important information about its full year and fourth quarter
production levels and sales and associated costs when it reports
actual results on February 18, 2021. For a complete picture of
the Company’s financial performance, it will be necessary to review
all of the information in the Company’s full year and fourth
quarter financial report and related MD&A. Accordingly, readers
are cautioned not to rely solely on the information contained
herein.
Finally, Barrick cautions that this press release contains
forward-looking statements with respect to: (i) Barrick’s
production and sales; (ii) costs per ounce for gold and per pound
for copper; and (iii) Barrick’s ability to achieve its guidance for
the year.
Forward-looking statements are necessarily based upon a number
of estimates and assumptions including material estimates and
assumptions related to the factors set forth below that, while
considered reasonable by the Company as at the date of this press
release in light of management’s experience and perception of
current conditions and expected developments, are inherently
subject to significant business, economic, and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking statements, and undue reliance should not be
placed on such statements and information. Such factors include,
but are not limited to: fluctuations in the spot and forward price
of gold, copper, or certain other commodities (such as silver,
diesel fuel, natural gas, and electricity); the speculative nature
of mineral exploration and development; changes in mineral
production performance, exploitation, and exploration successes;
the duration of the temporary suspension of operations at Porgera;
risks associated with projects in the early stages of evaluation,
and for which additional engineering and other analysis is
required; disruption of supply routes which may cause delays in
construction and mining activities at Barrick’s more remote
properties; whether benefits expected from recent transactions are
realized; diminishing quantities or grades of reserves; increased
costs, delays, suspensions and technical challenges associated with
the construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; failure to comply with environmental and health
and safety laws and regulations; timing of receipt of, or failure
to comply with, necessary permits and approvals; uncertainty
whether some or all of targeted investments and projects will meet
the Company’s capital allocation objectives and internal hurdle
rate; the impact of global liquidity and credit availability on the
timing of cash flows and the values of assets and liabilities based
on projected future cash flows; the impact of inflation;
fluctuations in the currency markets; changes in national and local
government legislation, taxation, controls or regulations and/ or
changes in the administration of laws, policies and practices,
expropriation or nationalization of property and political or
economic developments in Canada, the United States, and other
jurisdictions in which the Company or its affiliates do or may
carry on business in the future; lack of certainty with respect to
foreign legal systems, corruption and other factors that are
inconsistent with the rule of law; 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; the possibility that future
exploration results will not be consistent with the Company’s
expectations; 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; risk of loss due to acts of
war, terrorism, sabotage and civil disturbances; risks associated
with illegal and artisanal mining; risks associated with new
diseases, epidemics and pandemics, including the effects of the
global Covid-19 pandemic; litigation and legal and administrative
proceedings; contests over title to properties, particularly title
to undeveloped properties, or over access to water, power and other
required infrastructure; business opportunities that may be
presented to, or pursued by, the Company; our ability to
successfully integrate acquisitions or complete divestitures; risks
associated with working with partners in jointly controlled assets;
employee relations including loss of key employees; increased costs
and physical risks, including extreme weather events and resource
shortages, related to climate change; and availability and
increased costs associated with mining inputs and labor. Barrick
also cautions that its 2020 guidance may be impacted by the
unprecedented business and social disruption caused by the spread
of Covid-19. In addition, there are risks and hazards associated
with the business of mineral exploration, development and mining,
including environmental hazards, industrial accidents, unusual or
unexpected formations, pressures, cave-ins, flooding and gold
bullion, copper cathode or gold or copper concentrate losses (and
the risk of inadequate insurance, or inability to obtain insurance,
to cover these risks).
Many of these uncertainties and contingencies can affect our
actual results and could cause actual results to differ materially
from those expressed or implied in any forward-looking statements
made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
Barrick disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
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