Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today reported its
results for the first quarter of 2021, noting that with gold and
copper production on plan, it was well positioned to achieve its
annual guidance.
Production in the latter half of the year is
expected to be higher than the first, mainly due to mine sequencing
at Nevada Gold Mines, the commissioning of the new leach pad
facility at Veladero in Argentina, the ramp-up of underground
mining at Bulyanhulu and higher anticipated grades at Lumwana in
Zambia.
Barrick’s Tier One1 gold mines all delivered
strong financial performances in Q1 while revenue from its copper
mines rose by 31% due to higher copper prices. Net cash2 increased
by $0.5 billion despite an advanced tax payment to the state of
Nevada on the back of operating cash flow of $1.3 billion and
free cash flow3 of $0.8 billion.
The company announced a 9 cents per share
quarterly dividend, which will be topped up by a three-tranche
return of capital distribution totaling $750 million through the
course of the year. This would take the per share yield based on
yesterday’s closing share price to 3.5% for 2021.4,5
Major growth projects advanced during the
quarter include the plant and tailings expansion of the Tier One
Pueblo Viejo mine in the Dominican Republic, the third shaft at
Turquoise Ridge in Nevada and Goldrush exploration development,
also in Nevada, which has intersected first ore.
President and chief executive Mark Bristow said
Barrick’s intensified focus on exploration was paying dividends,
with exciting brownfields and generative results from multiple
targets across the group. Kibali in the Democratic Republic of
Congo was on course to replace reserves depleted by mining for the
third successive year and there were also particularly encouraging
results from Nevada, Loulo-Gounkoto in Mali, PV in Dominican
Republic and Jabal Sayid in Saudi Arabia.
Bristow said, “As detailed in Barrick’s recently
published Sustainability Report for 2020, the company has improved
its ESG performance against virtually all metrics. It has increased
its 2030 emissions reduction target from 10% to 30%, with the
ultimate aim of achieving net zero emissions by 2050.
“When we announced the merger between Barrick
and Randgold back in September 2018, we said that its rationale was
to combine the industry’s best assets with its best managers to
build the most valued gold business. Our management team’s record
speaks for itself, and as far as assets are concerned, Barrick
majority-owns and operates five of the world’s 10 largest gold
mines16, with a sixth in the form of Turquoise Ridge waiting in the
wings. Each of our core mines has a high-confidence 10-year plan in
place — and those are plans, not forecasts, which we plan to grow,”
he said.
“The rise in the gold price has prompted a
resurgence of the short-termism which has plagued the market, with
some investors focusing on short-term gains rather than sustainable
growth. But Barrick is building a business for the long term and
our focus remains firmly on the future and on the creation and
delivery of long-term value to our shareholders and all our other
stakeholders.”
Key Performance
Indicators
- Solid start to the 2021 year puts
Barrick on track to achieve production
targets
- Strong financial results
from Tier One assets with leading margins
- Copper revenues increased
31% compared to the prior quarter due to stronger copper
prices driving solid profitability with disciplined cost
control
- Net cash2
increased by $0.5 billion even after advance tax
payment in Nevada
- Operating cash flow of
$1.3 billion and free cash flow3 of
$0.8 billion
- Net earnings per share of
30 cents and adjusted net earnings per share6
of 29 cents
- Framework agreement in PNG puts
Porgera on track to resume operations
- Sustainability Report highlights
improvements against most ESG metrics
- Exploration delivers
exciting drill results from multiple targets
- Donlin approves 2021
follow-up drill program after successful 2020 results
- Turquoise Ridge Third
Shaft sinking reaches final station
- Goldrush exploration
development intersects first ore, in line with
guidance
- First $250 million ($0.14
per share) return of capital
distribution15 announced in addition to a
$0.09 quarterly dividend
Financial and Operating
Highlights
Financial Results |
Q1 2021 |
Q4 2020 |
Q1 2020 |
Realized gold price7,8($ per ounce) |
1,777 |
|
1,871 |
|
1,589 |
Net earnings9($ millions) |
538 |
|
685 |
|
400 |
Adjusted net earnings6($
millions) |
507 |
|
616 |
|
285 |
Net cash provided by operating
activities($ millions) |
1,302 |
|
1,638 |
|
889 |
Free cash flow3($
millions) |
763 |
|
1,092 |
|
438 |
Net earnings per share($) |
0.30 |
|
0.39 |
|
0.22 |
Adjusted net earnings per
share6($) |
0.29 |
|
0.35 |
|
0.16 |
Attributable capital
expenditures10($ millions) |
424 |
|
445 |
|
364 |
Debt,
net of cash($ millions) |
(519 |
) |
(33 |
) |
1,852 |
Operating Results |
Q1 2021 |
|
Q4 2020 |
|
Q1 2020 |
Gold |
|
|
Production8(000s of ounces) |
1,101 |
|
1,206 |
|
1,250 |
Cost of sales (Barrick's
share)8,11($ per ounce) |
1,073 |
|
1,065 |
|
1,020 |
Total cash costs8,12($ per
ounce) |
716 |
|
692 |
|
692 |
All-in sustaining costs8,12($
per ounce) |
1,018 |
|
929 |
|
954 |
Copper |
|
|
|
|
|
Production8(millions of pounds) |
93 |
|
119 |
|
115 |
Cost of sales (Barrick's
share)8,13($ per pound) |
2.11 |
|
2.06 |
|
1.96 |
C1 cash costs8,14($ per
pound) |
1.60 |
|
1.61 |
|
1.55 |
All-in
sustaining costs8,14($ per pound) |
2.26 |
|
2.42 |
|
2.04 |
Q1 2021 Results Presentation
President and CEO Mark Bristow will host an interactive webinar
on the results at 11:00 EDT / 15:00 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 Q1 2021 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 ANNOUNCES FIRST $250 MILLION RETURN OF CAPITAL
TRANCHE AND QUARTERLY DIVIDEND
Barrick today announced that the first $250 million
($0.14 per share)15 tranche of a
return of capital distribution totaling $750 million will be paid
on June 15, 2021 to shareholders of record at the close of business
on May 28, 2021.
In addition, Barrick announced that its Board of Directors has
declared a dividend for the first quarter of 2021 of $0.09 per
share, which will also be paid on June 15, 2021 to shareholders of
record at the close of business on May 28, 20214.
This follows the approval by shareholders at Barrick’s Annual
and Special Meeting on May 4, 2021 of the total $750 million return
of capital distribution. The remaining distribution of $500 million
is expected to be effected in two equal tranches to shareholders of
record on dates to be determined in August and November 2021.
Senior executive vice-president and chief financial officer
Graham Shuttleworth said that the return of capital distribution
and quarterly dividend demonstrates Barrick’s commitment to
shareholder returns in line with the strategy outlined at the time
of the Randgold merger in September 2018. Since that time dividends
have tripled, and together with this capital distribution,
establishes one of the industry’s leading returns for shareholders
in 2021.
“Based on the current number of outstanding shares, the
distribution of this first tranche represents approximately 14
cents per share15, with the three tranches to be distributed during
2021 representing approximately 42 cents per share in total15. In
addition to the current quarterly dividend of 9 cents per share,
these distributions are providing Barrick’s shareholders with a
significantly enhanced return in 2021,” said Shuttleworth.
INTEGRATION OF EXPLORATION, MINERAL RESOURCE MANAGEMENT
AND PLANNING UNLOCKS VALUE
Built on its core strategy of continuing exploration
success, Barrick’s 10-year plan has been bolstered further by
significant advances in resource replacement and prospect
development during the first quarter of the year.
Mineral resource management and evaluation executive, Rodney
Quick, says the post-merger focus on orebody knowledge across all
operating functions, a greatly improved understanding of geological
frameworks and the application of leading-edge technologies are
identifying and unlocking opportunities for expanding existing
asset bases as well as for new discoveries. These factors are
effectively combined under Barrick’s unique approach to integrated
exploration, mineral resource management and planning.
Better understanding of the orebodies has required a great deal
of work at the Nevada Gold Mines (NGM) joint venture and this is
now beginning to pay off. Drilling programs are currently under way
at all priority targets, including Leeville, Sphinx, Carlin Basin
and Pipeline-Robertson. Leeville is yielding robust high-grade
results and newly identified controls are opening up peripheral
targets. At Robertson, step-out drilling suggests considerable
near-surface upside and the potential for additional discoveries.
Exploration declines at Goldrush, now in ore, are continuing to
test extensions.
During the past quarter, notable advances were also made at
Loulo-Gounkoto, Kibali and Jabal Sayid.
In the greater Loulo district, new styles of mineralization have
been found in Senegal, a potential discovery is emerging at Yalea
Ridge and there are exciting drill intercepts beneath the Loulo 1
orebody. There are also at least three major structures immediately
south of Gounkoto with extensive anomalism pointing to a
potentially significant orebody nearby.
At Kibali, Kalimva is showing some very promising results and a
recent reinterpretation of the geological framework has highlighted
an area with many structural similarities to the world-class KCD
orebody immediately to the east.
At Jabal Sayid, a wide and high-grade intercept well outside the
known orebody, points to potentially significant mine life
extensions.
On the new discoveries front, generative and grassroots
exploration is building a pipeline of targets across all regions,
with a particular focus on Latin America, says Rob Krcmarov,
Barrick’s exploration and growth executive.
“There’s a high turnover of projects being evaluated, with the
emphasis on geological models and prospectivity. The Zambrana
target along strike from Pueblo Viejo is returning encouraging
results and at Veladero, drilling at Lama East appears to have
intersected strong near surface mineralisation, confirming the
potential of the unexplored region between Veladero and Lama.
Drilling is continuing to refine our understanding of the controls
on mineralization at Alturas-Del Carmen and Pascua-Lama,” he
says.
Barrick also continues to review new business opportunities,
capable of meeting its investment criteria, outside its existing
portfolio.
BIODIVERSITY ACTION PLANS PROTECT ECOSYSTEMS, PROMOTE
CONSERVATION AROUND BARRICK MINES
Barrick has implemented biodiversity action plans at all
its operational sites to manage their impact on sensitive
ecosystems as well as to support conservation efforts in the
wilderness areas around some of its mines.
In its latest conservation initiative, Barrick has entered into
an agreement with the government of Mali to assume responsibility
for the rehabilitation of the neglected Fina Reserve. Classified as
a biosphere reserve by UNESCO in 1982, Fina has since suffered from
under-investment and mismanagement.
Under the agreement, the company will invest $5 million in Fina
over the next five years to establish anti-poaching programs,
rehabilitate the lands and forests as well as reintroduce lost
animal species. In line with Barrick’s partnership philosophy, it
has established a board of governors which includes prominent
Malian businesspeople and representatives of Africa Parks. The
expert NGO, Bios, has been appointed to manage the park and an
introductory meeting has been held with local communities.
“Our ultimate aim is to transform Fina into an internationally
recognized national park for Mali,” says group sustainability
executive Grant Beringer.
In the Democratic Republic of Congo, Barrick already supports
the Garamba National Park, one of Africa’s oldest and a UNESCO
World Heritage Site. Garamba is home to the DRC’s largest elephant
population as well as the critically endangered Kordofan giraffe.
The company provides elephant tracking collars, fuel for
observation and anti-poaching aircraft as well as funding the
improvement of roads, bridges and other infrastructure. Since the
program began in September 2019, not a single incident of elephant
poaching has been recorded. The next step will be the
reintroduction of white rhino and giant eland to the park.
ESG IN ACTION: TANZANIA SHOWS THE WAY
When Barrick took over operational control of its
Tanzanian assets under two years ago, it faced daunting challenges:
a government that was actively hostile to the mining industry in
general and the former operator in particular; serious
environmental issues which had halted production at North Mara;
long-standing land disputes; allegations of human rights abuses;
and a non-existent social licence to operate.
Since then, Barrick has formed a pioneering partnership with the
government, through which they will share the economic benefits
generated by the mines. These have not only been brought back into
production but have been set on course to potentially become
another Tier One complex for the company. Barrick has settled the
land disputes and resolved other grievances and is dealing with
historical human rights accusations in an open and transparent
way.
Barrick has an absolute and unwavering commitment to minimizing
the environmental impact of its operations, and its first priority
was to fix the Tailings Storage Facility (TSF) and the water
management situation at North Mara, says Grant Beringer, group
sustainability executive.
The company will invest $65 million in water management
initiatives, which has included an upgrade of the water treatment
plant, increasing its capacity 16-fold, and has drained the excess
water from the TSF, bringing it back to within its permit levels.
The next big project is a brine plant, the first of its kind in
African mining, which will reduce the volume of salts and increase
their concentration to allow for safe storage in the TSF. This
plant is scheduled for commissioning in the third quarter of this
year.
Community development committees have been established at the
mines, and through consultation with these and the authorities,
Barrick reached agreement on land compensation rates. To date,
almost all the compensation has been paid in a process overseen by
the government, the local authorities and the affected
communities.
Barrick has worked with independent specialists Avanzar to
update its human rights policies, standards and procedures, and to
develop human rights workshops for managers and supervisors, the
first of which was held in January of this year. Avanzar has also
conducted a human rights impact assessment.
The international security provider has been replaced by a local
company with close community ties, the mines’ relationship with the
police has been reviewed to establish clear boundaries, and arms
and ammunition are no longer stored on site.
“While there is still a lot of work to be done, we are
encouraged by the progress we have made in establishing Barrick’s
social licence to operate in Tanzania and in transforming moribund
mines into a valuable addition to our global portfolio. The fact
that ESG is so deeply ingrained in Barrick meant that we did not
have to invent a strategy for dealing with Tanzania — we simply
applied our existing principles and procedures,” he says.
NEVADA GOLD MINES: WORLD CLASS ASSETS AND A GREAT
FUTURE
Nevada Gold Mines, the joint venture formed in July 2019
by industry leaders Barrick and Newmont, is maturing rapidly, with
a high-confidence 10-year plan in place and the focus shifting to a
15-year plan. The world’s largest gold mining complex, NGM is
majority-owned and operated by Barrick.
Mineral Resource Manager for North America, Grigore Simon, says
rapid progress in improving orebody knowledge has opened up
resource growth and exploration opportunities, notably at North
Leeville, Ren, Robertson, Turquoise Ridge and Carlin. The
integrated leadership team has also continued to realize the
value-creating synergies presented by the joint venture through
reallocating resources between mine sites, and sharing skills and
equipment to maximize returns.
At the same time, NGM has been reinforcing its social licence to
operate by building strong relationships with its local
communities, the counties, the state and the federal agencies.
Community support initiatives include the Elko broadband project,
which will bring reliable high-speed internet services to an area
with some of the lowest connectivity in the USA. Another is the
I-80 Fund. Originally established to provide relief to small
businesses impacted by Covid-19, it has since evolved into a rural
development fund to stimulate economic growth in Northern Nevada.
NGM’s Heritage Fund matches employee and company contributions to
fund essential programs and services prioritized by employees.
To ensure that community needs are being met, advisory groups
consisting of local stakeholders have been formed to nominate
development projects for investment by NGM.
“These community development committees provide a forum for
two-way engagement between stakeholders and NGM, and to forge
mutually beneficial partnerships working together to build
long-term economic sustainability in these regions,” says Alissa
Wood, head of communities and corporate affairs.
NGM has a strong track record in environmental remediation and
reclamation, and is a committed custodian of Nevada’s unique lands,
waters, flora and fauna. In support of the state’s carbon-reduction
objectives, NGM is converting its TS coal power plant to a dual
fuel process which will enable it to generate power from natural
gas. The conversion will allow NGM to eliminate 563,000 tonnes of
carbon dioxide equivalent emissions per year. Its clean energy
strategy also includes the installation of over 200MW of solar
power. Together, these have the potential to reduce NGM’s emissions
by 20% by 2025 — the equivalent of taking around 150,000 cars off
the road.
NGM is currently gearing up for its first virtual investor site
visit and information day, which will take place on May 25,
2021.
PARTNERSHIP AND PERSEVERANCE PAY OFF AT
PORGERA
The Porgera gold mine is set to resume operations later
this year after the Papua New Guinea (PNG) government and Barrick
Niugini Limited (BNL) agreed on a partnership for its future
ownership and operation.
Porgera has been on care and maintenance since April 2020 when
the government declined to renew its special mining lease.
Under the terms of a binding framework agreement, ownership of
Porgera will be held by a new joint venture owned 51% by PNG
stakeholders and 49% by BNL. BNL remains the operator of the mine
and will provide the capital required to restart it. PNG and BNL
will share the economic benefits created by Porgera on a 53/47%
basis over the life of mine.
Barrick president and chief executive Mark Bristow said the
agreement was the product of a long and intense negotiation process
which eventually delivered a fair outcome for both parties.
“We intend to partner with all key stakeholders to make Porgera
a world-class long-life gold mine,” he said.
The parties are currently working towards the signing of
definitive agreements, at which time full work on restarting the
mine will commence.
PUEBLO VIEJO MAINTAINS MAJOR CONTRIBUTION TO DOMINICAN
ECONOMY
Pueblo Viejo paid $228 million in direct cash taxes and
royalties in the first four months of this year, bringing its total
tax and royalty payments to the government to more than $2.6
billion since production started in 2013.
The mine’s shareholders have received none of these cash
distributions and are still recovering $1.2 billion from its
initial investment of $3.5 billion. It is estimated that over the
current life of the mine, from 2013 to an expected 2043, its total
economic benefit will be in excess of $16 billion, of which the
government will get 55% and the mine’s shareholders receive
45%.
Pueblo Viejo accounts for an average of 19% of the Dominican
Republic’s annual corporate tax revenue, and in 2020 was
responsible for 37% of the country’s total exports. Last year it
also contributed $346 million to the economy in the form of
purchases from local suppliers and contractors.
Pueblo Viejo president Juana Barcelo says the mine’s expansion
project will enable it to continue its social and economic
contributions towards the development of the Dominican Republic for
many years to come. Without this project, however, it would have to
stop mining this year and the benefits to the Dominican economy,
the State treasury as well as the employees, business partners and
communities around the mine would cease.
KIBALI MAKES STRONG START TO 2021, CONTINUES TO REDUCE
CARBON FOOTPRINT
The Barrick operated Kibali mine in the DRC produced
191,612 ounces of gold17 in the
first quarter of 2021, keeping it on plan and on track to achieve
its full year target, president and chief executive Mark Bristow
told local media and stakeholders at a recent briefing in
Kinshasa.
The mine’s underground operation again drove production and
continuing improvements in the plant’s throughput and recovery
rates also contributed to Kibali’s on-plan delivery. Efficiency
improvement projects completed during the quarter, including an
upgrade of the hoisting infrastructure, are expected to boost its
performance further.
Power generation costs benefitted during the quarter from higher
river levels as the mine’s three hydropower plants supplied the
bulk of its energy requirements. The power grid was further
enhanced by the installation of a 9MW battery support system. The
new system will also decrease the need for diesel-generated backup,
in line with the mine’s strategy of reducing its carbon
footprint.
Strict adherence to Covid-19 prevention protocols largely
shielded the mine from the impact of the pandemic’s second
wave.
Looking ahead, Kibali continues to replace resources and secure
further open pit opportunities to balance its underground mine, and
to replace reserves and add flexibility to the operation in support
of its robust 10-year plan.
Kibali maintained its investment in community development, among
other things by advancing the Kibali-built Durba concrete road by
1.5km. The provision of additional potable water sources to the
surrounding villages was also extended. During Q1, the mine
launched an innovative campaign to stimulate the Durba economy by
issuing local shopping vouchers to employees.
Bristow said that Kibali continued to support the DRC’s Garamba
National Park, one of the oldest in Africa and a UNESCO World
Heritage Site, and that there had not been a single instance of
elephant poaching during 2020. The support program includes
tracking collars for elephants, fuel for tracker aircraft and
infrastructure improvements. A plan to reintroduce white rhino and
giant eland to the park is the next big undertaking.
“We look forward to working closely with His Excellency
President Felix Tshisekedi and his new coalition government in
further strengthening our partnership with the DRC and to resolve
certain outstanding issues around the mining code and the
repatriation of cash,” Bristow said. Since the development of
Kibali started in 2010, it has contributed $3.5 billion to the
DRC’s economy.
LOULO-GOUNKOTO’S THIRD UNDERGROUND MINE ON TRACK TO
START PRODUCTION
Barrick’s giant Loulo-Gounkoto gold complex’s third
underground mine has reached its first mining level and is
scheduled to start delivering ore tonnes to the plant during the
second quarter, president and chief executive Mark Bristow told a
media briefing in Bamako recently.
At the same time, a prefeasibility study has started on two more
mines on the Loulo permit: an underground operation at Loulo 3 and
a large open pit at Yalea South. These, Bristow said, would add
mining sources and improve feed flexibility, providing further
support for the complex’s robust 10-year plan. Meanwhile
exploration programs designed to replace depleted reserves are
continuing to deliver good results.
The complex produced 193,014 ounces of gold in Q1 and is on
track to achieve its full-year guidance of 640,000 to 700,000
ounces17. Given its strong performance and the relatively high gold
price, the joint venture board paid a combined dividend for the
Loulo-Gounkoto complex of $80 million in the quarter.
Covid-19 testing and care capacities were upgraded during the
quarter through the acquisition of new equipment and the complex
has been largely unaffected by the third wave of the pandemic.
Bristow said the complex was continuing to invest in the
development of the local community. One of its latest initiatives
is the Accelerator program, which trains smaller suppliers and
service providers in all aspects of business to enable them to grow
and diversify. In addition, they are mentored by some of
Loulo-Gounkoto’s larger, long-established suppliers and
contractors. Since the program was introduced eight months ago, 63%
of the participants have diversified their revenue streams and 80%
now have five-year growth plans and long-term goals.
“Loulo-Gounkoto remains a pillar of the Malian economy as well
as a driver of local economic development. Over the past 24 years,
Barrick and its legacy company Randgold Resources have contributed
$7.7 billion to the economy, of which $3 billion went to the state
in the form of dividends, taxes and royalties. Our long partnership
with the country and its people is a testament to how mutually
beneficial a relationship of this kind can be,” Bristow said.
Appendix 12021
Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS |
|
2021 forecast attributableproduction (000s oz) |
2021 forecast cost ofsales11 ($/oz) |
2021 forecast total cashcosts12 ($/oz) |
2021 forecast all-insustaining costs12 ($/oz) |
Carlin (61.5%)18 |
940 - 1,000 |
920 - 970 |
740 - 790 |
1,050 - 1,100 |
Cortez (61.5%)19 |
500 - 550 |
1,000 - 1,050 |
700 - 750 |
940 - 990 |
Turquoise Ridge (61.5%) |
390 - 440 |
950 - 1,000 |
620 - 670 |
810 - 860 |
Phoenix (61.5%) |
100 - 120 |
1,800 - 1,850 |
725 - 775 |
970 - 1,020 |
Long Canyon (61.5%) |
140 - 160 |
800 - 850 |
180 - 230 |
240 - 290 |
Nevada Gold Mines (61.5%) |
2,100 - 2,250 |
980 - 1,030 |
660 - 710 |
910 - 960 |
Hemlo |
200 - 220 |
1,200 - 1,250 |
950 - 1,000 |
1,280 - 1,330 |
North America |
2,300 - 2,450 |
990 - 1,040 |
690 - 740 |
940 - 990 |
|
|
|
|
|
Pueblo Viejo (60%) |
470 - 510 |
880 - 930 |
520 - 570 |
760 - 810 |
Veladero (50%) |
130 - 150 |
1,510 - 1,560 |
820 - 870 |
1,720 - 1,770 |
Porgera (47.5%)20 |
— |
— |
— |
— |
Latin America & Asia Pacific |
600 - 660 |
1,050 - 1,100 |
600 - 650 |
1,000 - 1,050 |
|
|
|
|
|
Loulo-Gounkoto (80%) |
510 - 560 |
980 - 1,030 |
630 - 680 |
930 - 980 |
Kibali (45%) |
350 - 380 |
990 - 1,040 |
590 - 640 |
800 - 850 |
North Mara (84%) |
240 - 270 |
970 - 1,020 |
740 - 790 |
960 - 1,010 |
Tongon (89.7%) |
180 - 200 |
1,470 - 1,520 |
1,000 - 1,050 |
1,140 - 1,190 |
Bulyanhulu (84%) |
170 - 200 |
980 - 1,030 |
580 - 630 |
810 - 860 |
Buzwagi (84%) |
30 - 40 |
1,360 - 1,410 |
1,250 - 1,300 |
1,230 - 1,280 |
Africa & Middle East |
1,500 - 1,600 |
1,050 - 1,100 |
690 - 740 |
920 - 970 |
|
|
|
|
|
Total Attributable to
Barrick21,22,23 |
4,400 - 4,700 |
1,020 - 1,070 |
680 - 730 |
970 - 1,020 |
|
|
|
|
|
COPPER PRODUCTION AND COSTS |
|
2021 forecast attributableproduction (Mlbs) |
2021 forecast cost ofsales13 ($/lb) |
2021 forecast C1 cashcosts14 ($/lb) |
2021 forecast all-insustaining costs14 ($/lb) |
Lumwana |
250 - 280 |
1.85 - 2.05 |
1.45 - 1.65 |
2.25 - 2.45 |
Zaldívar (50%) |
90 - 110 |
2.30 - 2.50 |
1.65 - 1.85 |
1.90 - 2.10 |
Jabal Sayid (50%) |
70 - 80 |
1.40 - 1.60 |
1.10 - 1.30 |
1.30 - 1.50 |
Total Attributable to
Barrick22 |
410 - 460 |
1.90 - 2.10 |
1.40 - 1.60 |
2.00 - 2.20 |
|
|
|
|
|
ATTRIBUTABLE CAPITAL EXPENDITURES |
|
|
|
|
($ millions) |
|
|
|
Attributable minesite sustaining |
1,250 - 1,450 |
|
|
|
Attributable project |
550 - 650 |
|
|
|
Total attributable capital expenditures |
1,800 - 2,100 |
|
|
|
2021 OUTLOOK ASSUMPTIONS AND ECONOMIC
SENSITIVITY ANALYSIS24
|
2021 Guidance Assumption |
Hypothetical Change |
Impact on EBITDA25 (millions) |
Impact on TCC/C1 Cash Costs and AISC12,14 |
Gold price sensitivity |
$1,700/oz |
+/- $100/oz |
+/- $620 |
+/-$4/oz |
Copper
price sensitivity |
$2.75/lb |
+/- $0.25/lb |
+/- $60 |
+/- $0.01/lb |
Appendix 2Production
and Cost Summary - Gold
|
For the three months ended |
|
|
3/31/21 |
|
12/31/20 |
|
% Change |
|
3/31/20 |
|
% Change |
|
Nevada Gold Mines LLC
(61.5%)a |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
485 |
|
546 |
|
(11)% |
|
526 |
|
(8)% |
|
Gold produced (000s oz 100% basis) |
789 |
|
885 |
|
(11)% |
|
855 |
|
(8)% |
|
Cost of sales ($/oz) |
1,047 |
|
1,008 |
|
4 % |
|
995 |
|
5 % |
|
Total cash costs ($/oz)b |
686 |
|
667 |
|
3 % |
|
690 |
|
(1)% |
|
All-in sustaining costs ($/oz)b |
932 |
|
873 |
|
7 % |
|
952 |
|
(2)% |
|
Carlin (61.5%)c |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
229 |
|
260 |
|
(12)% |
|
253 |
|
(9)% |
|
Gold produced (000s oz 100% basis) |
373 |
|
422 |
|
(12)% |
|
411 |
|
(9)% |
|
Cost of sales ($/oz) |
950 |
|
917 |
|
4 % |
|
970 |
|
(2)% |
|
Total cash costs ($/oz)b |
766 |
|
740 |
|
4 % |
|
776 |
|
(1)% |
|
All-in sustaining costs ($/oz)b |
1,045 |
|
1,005 |
|
4 % |
|
1,007 |
|
4 % |
|
Cortez (61.5%)d |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
100 |
|
118 |
|
(15)% |
|
128 |
|
(22)% |
|
Gold produced (000s oz 100% basis) |
163 |
|
191 |
|
(15)% |
|
208 |
|
(22)% |
|
Cost of sales ($/oz) |
1,251 |
|
1,043 |
|
20 % |
|
878 |
|
42 % |
|
Total cash costs ($/oz)b |
860 |
|
738 |
|
17 % |
|
614 |
|
40 % |
|
All-in sustaining costs ($/oz)b |
1,203 |
|
906 |
|
33 % |
|
1,009 |
|
19 % |
|
Turquoise Ridge (61.5%) |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
92 |
|
91 |
|
1 % |
|
84 |
|
9 % |
|
Gold produced (000s oz 100% basis) |
149 |
|
147 |
|
1 % |
|
137 |
|
9 % |
|
Cost of sales ($/oz) |
1,007 |
|
1,064 |
|
(5)% |
|
1,032 |
|
(2)% |
|
Total cash costs ($/oz)b |
647 |
|
687 |
|
(6)% |
|
668 |
|
(3)% |
|
All-in sustaining costs ($/oz)b |
741 |
|
757 |
|
(2)% |
|
806 |
|
(8)% |
|
Phoenix (61.5%) |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
25 |
|
26 |
|
(3)% |
|
35 |
|
(28)% |
|
Gold produced (000s oz 100% basis) |
41 |
|
42 |
|
(3)% |
|
57 |
|
(28)% |
|
Cost of sales ($/oz) |
2,051 |
|
2,054 |
|
— % |
|
1,583 |
|
30 % |
|
Total cash costs ($/oz)b |
346 |
|
590 |
|
(41)% |
|
737 |
|
(53)% |
|
All-in sustaining costs ($/oz)b |
530 |
|
670 |
|
(21)% |
|
914 |
|
(42)% |
|
Long Canyon (61.5%) |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
39 |
|
51 |
|
(24)% |
|
26 |
|
50 % |
|
Gold produced (000s oz 100% basis) |
63 |
|
83 |
|
(24)% |
|
42 |
|
50 % |
|
Cost of sales ($/oz) |
511 |
|
674 |
|
(24)% |
|
1,025 |
|
(50)% |
|
Total cash costs ($/oz)b |
79 |
|
145 |
|
(46)% |
|
345 |
|
(77)% |
|
All-in sustaining costs ($/oz)b |
156 |
|
324 |
|
(52)% |
|
561 |
|
(72)% |
|
Pueblo Viejo (60%) |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
137 |
|
159 |
|
(14)% |
|
143 |
|
(4)% |
|
Gold produced (000s oz 100% basis) |
229 |
|
265 |
|
(14)% |
|
238 |
|
(4)% |
|
Cost of sales ($/oz) |
816 |
|
803 |
|
2 % |
|
767 |
|
6 % |
|
Total cash costs ($/oz)b |
507 |
|
493 |
|
3 % |
|
502 |
|
1 % |
|
All-in sustaining costs ($/oz)b |
689 |
|
689 |
|
— % |
|
626 |
|
10 % |
|
Loulo-Gounkoto (80%) |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
154 |
|
123 |
|
26 % |
|
141 |
|
9 % |
|
Gold produced (000s oz 100% basis) |
193 |
|
153 |
|
26 % |
|
177 |
|
9 % |
|
Cost of sales ($/oz) |
974 |
|
1,149 |
|
(15)% |
|
1,002 |
|
(3)% |
|
Total cash costs ($/oz)b |
608 |
|
734 |
|
(17)% |
|
614 |
|
(1)% |
|
All-in sustaining costs ($/oz)b |
920 |
|
923 |
|
— % |
|
891 |
|
3 % |
|
Kibali (45%) |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
86 |
|
92 |
|
(6)% |
|
91 |
|
(5)% |
|
Gold produced (000s oz 100% basis) |
192 |
|
205 |
|
(6)% |
|
201 |
|
(5)% |
|
Cost of sales ($/oz) |
1,065 |
|
1,163 |
|
(8)% |
|
1,045 |
|
2 % |
|
Total cash costs ($/oz)b |
691 |
|
616 |
|
12 % |
|
582 |
|
19 % |
|
All-in sustaining costs ($/oz)b |
856 |
|
783 |
|
9 % |
|
773 |
|
11 % |
|
Veladero (50%) |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
32 |
|
58 |
|
(45)% |
|
75 |
|
(57)% |
|
Gold produced (000s oz 100% basis) |
64 |
|
116 |
|
(45)% |
|
150 |
|
(57)% |
|
Cost of sales ($/oz) |
1,151 |
|
1,074 |
|
7 % |
|
1,182 |
|
(3)% |
|
Total cash costs ($/oz)b |
736 |
|
698 |
|
5 % |
|
788 |
|
(7)% |
|
All-in sustaining costs ($/oz)b |
2,104 |
|
1,428 |
|
47 % |
|
1,266 |
|
66 % |
|
Porgera (47.5%)e |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
— |
|
— |
|
|
|
62 |
|
(100)% |
|
Gold produced (000s oz 100% basis) |
— |
|
— |
|
|
|
131 |
|
(100)% |
|
Cost of sales ($/oz) |
— |
|
— |
|
|
|
1,097 |
|
(100)% |
|
Total cash costs ($/oz)b |
— |
|
— |
|
|
|
941 |
|
(100)% |
|
All-in sustaining costs ($/oz)b |
— |
|
— |
|
|
|
1,089 |
|
(100)% |
|
Tongon (89.7%) |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
48 |
|
66 |
|
(26)% |
|
61 |
|
(21)% |
|
Gold produced (000s oz 100% basis) |
54 |
|
73 |
|
(26)% |
|
68 |
|
(21)% |
|
Cost of sales ($/oz) |
1,510 |
|
1,371 |
|
10 % |
|
1,368 |
|
10 % |
|
Total cash costs ($/oz)b |
995 |
|
810 |
|
23 % |
|
762 |
|
31 % |
|
All-in sustaining costs ($/oz)b |
1,062 |
|
853 |
|
25 % |
|
788 |
|
35 % |
|
Hemlo |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz) |
47 |
|
57 |
|
(18)% |
|
57 |
|
(18)% |
|
Cost of sales ($/oz) |
1,610 |
|
1,379 |
|
17 % |
|
1,119 |
|
44 % |
|
Total cash costs ($/oz)b |
1,324 |
|
1,104 |
|
20 % |
|
945 |
|
40 % |
|
All-in sustaining costs ($/oz)b |
1,840 |
|
1,464 |
|
26 % |
|
1,281 |
|
44 % |
|
North Mara (84%) |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
62 |
|
61 |
|
1 % |
|
65 |
|
(4)% |
|
Gold produced (000s oz 100% basis) |
74 |
|
73 |
|
1 % |
|
77 |
|
(4)% |
|
Cost of sales ($/oz) |
1,061 |
|
1,073 |
|
(1)% |
|
959 |
|
11 % |
|
Total cash costs ($/oz)b |
832 |
|
799 |
|
4 % |
|
646 |
|
29 % |
|
All-in sustaining costs ($/oz)b |
1,038 |
|
989 |
|
5 % |
|
816 |
|
27 % |
|
Buzwagi (84%) |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
17 |
|
21 |
|
(20)% |
|
22 |
|
(25)% |
|
Gold produced (000s oz 100% basis) |
20 |
|
25 |
|
(20)% |
|
27 |
|
(25)% |
|
Cost of sales ($/oz) |
1,486 |
|
1,314 |
|
13 % |
|
1,373 |
|
8 % |
|
Total cash costs ($/oz)b |
1,450 |
|
1,267 |
|
14 % |
|
1,275 |
|
14 % |
|
All-in sustaining costs ($/oz)b |
1,467 |
|
1,283 |
|
14 % |
|
1,288 |
|
14 % |
|
Bulyanhulu (84%) |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
33 |
|
23 |
|
44 % |
|
7 |
|
352 % |
|
Gold produced (000s oz 100% basis) |
39 |
|
27 |
|
44 % |
|
9 |
|
352 % |
|
Cost of sales ($/oz) |
1,211 |
|
1,181 |
|
3 % |
|
1,685 |
|
(28)% |
|
Total cash costs ($/oz)b |
865 |
|
610 |
|
42 % |
|
686 |
|
26 % |
|
All-in sustaining costs ($/oz)b |
957 |
|
664 |
|
44 % |
|
906 |
|
6 % |
|
Total Attributable to
Barrickf |
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz) |
1,101 |
|
1,206 |
|
(9)% |
|
1,250 |
|
(12)% |
|
Cost of sales ($/oz)g |
1,073 |
|
1,065 |
|
1 % |
|
1,020 |
|
5 % |
|
Total cash costs ($/oz)b |
716 |
|
692 |
|
3 % |
|
692 |
|
3 % |
|
All-in sustaining costs ($/oz)b |
1,018 |
|
929 |
|
10 % |
|
954 |
|
7 % |
|
- These results
represent our 61.5% interest in Carlin (including NGM's 60%
interest in South Arturo), Cortez, Turquoise Ridge, Phoenix and
Long Canyon.
- These are
non-GAAP financial performance measures with no standardized
meaning under IFRS and therefore may not be comparable to similar
measures presented by other issuers. For further information and a
detailed reconciliation of each non-GAAP measure used in this
section of the press release to the most directly comparable IFRS
measure, please see the endnotes to this press release.
- Included within
our 61.5% interest in Carlin is NGM's 60% interest in South
Arturo.
- Starting in the
first quarter of 2021, Goldrush is reported as part of Cortez as it
is operated by Cortez management. Comparative periods have been
restated to include Goldrush.
- As Porgera was placed on care and
maintenance on April 25, 2020, no operating data or per ounce data
is provided.
- Excludes
Pierina, Lagunas Norte, Golden Sunlight, and Morila (40%) up until
its divestiture in November 2020, as these assets are producing
incidental ounces while in closure or care and maintenance.
- Gold cost of sales per ounce is calculated as cost of sales
across our gold operations (excluding sites in 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 |
|
|
3/31/21 |
|
12/31/20 |
|
% Change |
|
3/31/20 |
|
% Change |
|
Lumwana |
|
|
|
|
|
|
|
|
|
Copper production (Mlbs) |
51 |
|
78 |
|
(35)% |
|
64 |
|
(20)% |
|
Cost of sales ($/lb) |
1.97 |
|
1.96 |
|
1 % |
|
1.94 |
|
2 % |
|
C1 cash costs ($/lb)a |
1.48 |
|
1.58 |
|
(6)% |
|
1.63 |
|
(9)% |
|
All-in sustaining costs ($/lb)a |
2.37 |
|
2.60 |
|
(9)% |
|
2.26 |
|
5 % |
|
Zaldívar
(50%) |
|
|
|
|
|
|
|
|
|
|
Copper production (Mlbs attributable basis) |
24 |
|
23 |
|
4 % |
|
31 |
|
(23)% |
|
Copper production (Mlbs 100% basis) |
48 |
|
46 |
|
4 % |
|
62 |
|
(23)% |
|
Cost of sales ($/lb) |
3.03 |
|
2.68 |
|
13 % |
|
2.39 |
|
27 % |
|
C1 cash costs ($/lb)a |
2.25 |
|
2.01 |
|
12 % |
|
1.71 |
|
32 % |
|
All-in sustaining costs ($/lb)a |
2.47 |
|
2.70 |
|
(9)% |
|
1.99 |
|
24 % |
|
Jabal Sayid (50%) |
|
|
|
|
|
|
|
|
|
|
Copper production (Mlbs attributable basis) |
18 |
|
18 |
|
0 % |
|
20 |
|
(10)% |
|
Copper production (Mlbs 100% basis) |
36 |
|
36 |
|
0 % |
|
40 |
|
(10)% |
|
Cost of sales ($/lb) |
1.21 |
|
1.53 |
|
(21)% |
|
1.28 |
|
(5)% |
|
C1 cash costs ($/lb)a |
1.06 |
|
1.15 |
|
(8)% |
|
0.97 |
|
9 % |
|
All-in sustaining costs ($/lb)a |
1.22 |
|
1.27 |
|
(4)% |
|
1.11 |
|
10 % |
|
Total Attributable to Barrick |
|
|
|
|
|
|
|
|
|
|
Copper production (Mlbs attributable basis) |
93 |
|
119 |
|
(22)% |
|
115 |
|
(19)% |
|
Cost of sales ($/lb)b |
2.11 |
|
2.06 |
|
2 % |
|
1.96 |
|
8 % |
|
C1 cash costs ($/lb)a |
1.60 |
|
1.61 |
|
(1)% |
|
1.55 |
|
3 % |
|
All-in sustaining costs ($/lb)a |
2.26 |
|
2.42 |
|
(7)% |
|
2.04 |
|
11 % |
|
-
These are non-GAAP financial performance measures with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. For further
information and a detailed reconciliation of each non-GAAP measure
used in this section of the press release to the most directly
comparable IFRS measure, please see the endnotes to this press
release.
- Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share).
Appendix 3Financial and Operating
Highlights
|
For the three months ended |
|
|
3/31/21 |
|
12/31/20 |
|
% Change |
|
|
3/31/20 |
|
% Change |
|
Financial Results ($ millions) |
|
|
|
|
|
|
Revenues |
2,956 |
|
3,279 |
|
(10 |
)% |
|
2,721 |
|
9 |
% |
Cost of sales |
1,712 |
|
1,814 |
|
(6 |
)% |
|
1,776 |
|
(4 |
)% |
Net earningsa |
538 |
|
685 |
|
(21 |
)% |
|
400 |
|
35 |
% |
Adjusted net earningsb |
507 |
|
616 |
|
(18 |
)% |
|
285 |
|
78 |
% |
Adjusted EBITDAb |
1,800 |
|
2,106 |
|
(15 |
)% |
|
1,466 |
|
23 |
% |
Adjusted EBITDA marginc |
61 |
% |
64 |
% |
(5 |
)% |
|
54 |
% |
13 |
% |
Minesite sustaining capital
expendituresd |
405 |
|
354 |
|
14 |
% |
|
370 |
|
9 |
% |
Project capital
expendituresd |
131 |
|
184 |
|
(29 |
)% |
|
76 |
|
72 |
% |
Total consolidated capital
expendituresd,e |
539 |
|
546 |
|
(1 |
)% |
|
451 |
|
20 |
% |
Net cash provided by operating
activities |
1,302 |
|
1,638 |
|
(21 |
)% |
|
889 |
|
46 |
% |
Net cash provided by operating
activities marginf |
44 |
% |
50 |
% |
(12 |
)% |
|
33 |
% |
33 |
% |
Free cash flowb |
763 |
|
1,092 |
|
(30 |
)% |
|
438 |
|
74 |
% |
Net earnings per share (basic and
diluted) |
0.30 |
|
0.39 |
|
(23 |
)% |
|
0.22 |
|
36 |
% |
Adjusted net earnings (basic)b
per share |
0.29 |
|
0.35 |
|
(17 |
)% |
|
0.16 |
|
81 |
% |
Weighted average diluted common shares (millions of shares) |
1,778 |
|
1,778 |
|
0 |
% |
|
1,778 |
|
0 |
% |
Operating Results |
|
|
|
|
|
|
Gold production (thousands of
ounces)g |
1,101 |
|
1,206 |
|
(9 |
)% |
|
1,250 |
|
(12 |
)% |
Gold sold (thousands of
ounces)g |
1,093 |
|
1,186 |
|
(8 |
)% |
|
1,220 |
|
(10 |
)% |
Market gold price ($/oz) |
1,794 |
|
1,874 |
|
(4 |
)% |
|
1,583 |
|
13 |
% |
Realized gold priceb,g
($/oz) |
1,777 |
|
1,871 |
|
(5 |
)% |
|
1,589 |
|
12 |
% |
Gold cost of sales (Barrick’s
share)g,h ($/oz) |
1,073 |
|
1,065 |
|
1 |
% |
|
1,020 |
|
5 |
% |
Gold total cash costsb,g
($/oz) |
716 |
|
692 |
|
3 |
% |
|
692 |
|
3 |
% |
Gold all-in sustaining costsb,g
($/oz) |
1,018 |
|
929 |
|
10 |
% |
|
954 |
|
7 |
% |
Copper production (millions of
pounds)g |
93 |
|
119 |
|
(22 |
)% |
|
115 |
|
(19 |
)% |
Copper sold (millions of
pounds)g |
113 |
|
108 |
|
5 |
% |
|
110 |
|
3 |
% |
Market copper price ($/lb) |
3.86 |
|
3.25 |
|
19 |
% |
|
2.56 |
|
51 |
% |
Realized copper priceb,g
($/lb) |
4.12 |
|
3.39 |
|
22 |
% |
|
2.23 |
|
85 |
% |
Copper cost of sales (Barrick’s
share)g,i ($/lb) |
2.11 |
|
2.06 |
|
2 |
% |
|
1.96 |
|
8 |
% |
Copper C1 cash costsb,g
($/lb) |
1.60 |
|
1.61 |
|
(1 |
)% |
|
1.55 |
|
3 |
% |
Copper all-in sustaining costsb,g
($/lb) |
2.26 |
|
2.42 |
|
(7 |
)% |
|
2.04 |
|
11 |
% |
|
As at 3/31/21 |
|
As at 12/31/20 |
|
% Change |
|
|
As at 3/31/20 |
|
% Change |
|
Financial Position ($ millions) |
|
|
|
|
|
|
Debt (current and long-term) |
5,153 |
|
5,155 |
|
0 |
% |
|
5,179 |
|
(1 |
)% |
Cash and equivalents |
5,672 |
|
5,188 |
|
9 |
% |
|
3,327 |
|
70 |
% |
Debt, net of cash |
(519 |
) |
(33 |
) |
1,473 |
% |
|
1,852 |
|
(128 |
)% |
a. |
Net earnings represents net earnings attributable to the equity
holders of the Company. |
b. |
Adjusted net earnings, adjusted
EBITDA, free cash flow, adjusted net earnings per share, realized
gold price, all-in sustaining costs, total cash costs, C1 cash
costs and realized copper price are non-GAAP financial performance
measures with no standardized meaning under IFRS and therefore may
not be comparable to similar measures presented by other issuers.
For further information and a detailed reconciliation of each
non-GAAP measure to the most directly comparable IFRS measure,
please see 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 $3 million for
the three month periods ended March 31, 2021
(December 31, 2020: $8 million and March 31, 2020: $5
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 care and maintenance) divided by ounces sold (both on an
attributable basis using Barrick's ownership share). |
i. |
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, |
|
|
|
2021 |
|
|
2020 |
|
Revenue (notes 5 and 6) |
$ |
2,956 |
|
$ |
2,721 |
|
Costs and expenses (income) |
|
|
Cost of sales (notes 5 and
7) |
|
1,712 |
|
|
1,776 |
|
General and administrative
expenses |
|
38 |
|
|
40 |
|
Exploration, evaluation and
project expenses |
|
61 |
|
|
71 |
|
Impairment reversals (notes 9b
and 13) |
|
(89 |
) |
|
(336 |
) |
Loss on currency translation |
|
4 |
|
|
16 |
|
Closed mine rehabilitation |
|
23 |
|
|
90 |
|
Income from equity investees
(note 12) |
|
(103 |
) |
|
(54 |
) |
Other expense (income) (note 9a) |
|
19 |
|
|
(35 |
) |
Income before finance costs and income taxes |
$ |
1,291 |
|
$ |
1,153 |
|
Finance costs, net |
|
(87 |
) |
|
(104 |
) |
Income before income taxes |
$ |
1,204 |
|
$ |
1,049 |
|
Income tax expense (note 10) |
|
(374 |
) |
|
(386 |
) |
Net income |
$ |
830 |
|
$ |
663 |
|
Attributable to: |
|
|
Equity holders of Barrick Gold
Corporation |
$ |
538 |
|
$ |
400 |
|
Non-controlling interests (note 17) |
$ |
292 |
|
$ |
263 |
|
|
|
|
Earnings per share
data attributable to the equity holders of Barrick Gold Corporation
(note 8) |
|
|
Net income |
|
|
Basic |
$ |
0.30 |
|
$ |
0.22 |
|
Diluted |
$ |
0.30 |
|
$ |
0.22 |
|
The notes to these unaudited condensed interim
financial statements, which are contained in the First Quarter
Report 2021 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, |
|
|
|
2021 |
|
|
2020 |
|
Net
income |
$ |
830 |
|
$ |
663 |
|
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 |
|
— |
|
|
(4 |
) |
Items that will not be
reclassified to profit or loss: |
|
|
Actuarial gain on post employment
benefit obligations, net of tax $nil and $3 |
|
— |
|
|
3 |
|
Net change on equity investments,
net of tax $8 and $nil |
|
(47 |
) |
|
(25 |
) |
Total other comprehensive loss |
|
(47 |
) |
|
(25 |
) |
Total comprehensive income |
$ |
783 |
|
$ |
638 |
|
Attributable to: |
|
|
Equity holders of Barrick Gold
Corporation |
$ |
491 |
|
$ |
375 |
|
Non-controlling interests |
$ |
292 |
|
$ |
263 |
|
The notes to these unaudited condensed interim
financial statements, which are contained in the First Quarter
Report 2021 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, |
|
|
|
2021 |
|
|
2020 |
|
OPERATING ACTIVITIES |
|
|
Net income |
$ |
830 |
|
$ |
663 |
|
Adjustments for the following
items: |
|
|
Depreciation |
|
507 |
|
|
524 |
|
Finance costs, net |
|
94 |
|
|
111 |
|
Impairment reversals (notes 9b and 13) |
|
(89 |
) |
|
(336 |
) |
Income tax expense (note 10) |
|
374 |
|
|
386 |
|
Gain on sale of non-current assets |
|
(3 |
) |
|
(60 |
) |
Loss on currency translation |
|
4 |
|
|
16 |
|
Change in working capital
(note 11) |
|
(102 |
) |
|
(332 |
) |
Other
operating activities (note 11) |
|
(93 |
) |
|
53 |
|
Operating cash flows before interest and income taxes |
|
1,522 |
|
|
1,025 |
|
Interest paid |
|
(22 |
) |
|
(24 |
) |
Income
taxes paid1 |
|
(198 |
) |
|
(112 |
) |
Net cash provided by operating activities |
|
1,302 |
|
|
889 |
|
INVESTING ACTIVITIES |
|
|
Property, plant and
equipment |
|
|
Capital expenditures (note 5) |
|
(539 |
) |
|
(451 |
) |
Sales proceeds |
|
4 |
|
|
7 |
|
Divestitures (note 4) |
|
— |
|
|
256 |
|
Other
investing activities (note 11) |
|
127 |
|
|
25 |
|
Net cash used in investing activities |
|
(408 |
) |
|
(163 |
) |
FINANCING ACTIVITIES |
|
|
Lease repayments |
|
(6 |
) |
|
(5 |
) |
Debt repayments |
|
(7 |
) |
|
(351 |
) |
Dividends |
|
(158 |
) |
|
(122 |
) |
Funding from non-controlling
interests (note 17) |
|
6 |
|
|
1 |
|
Disbursements to
non-controlling interests (note 17) |
|
(265 |
) |
|
(217 |
) |
Other
financing activities (note 11) |
|
21 |
|
|
(15 |
) |
Net cash used in financing activities |
|
(409 |
) |
|
(709 |
) |
Effect of exchange rate changes on cash and
equivalents |
|
(1 |
) |
|
(4 |
) |
Net increase in cash and equivalents |
|
484 |
|
|
13 |
|
Cash and equivalents at the beginning of
period |
|
5,188 |
|
|
3,314 |
|
Cash and equivalents at the end of period |
$ |
5,672 |
|
$ |
3,327 |
|
1. Income taxes paid excludes $36 million (March 31,
2020: $24 million) of income taxes payable that were settled
against offsetting VAT receivables.
The notes to these unaudited condensed interim
financial statements, which are contained in the First Quarter
Report 2021 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) |
|
2021 |
|
|
2020 |
|
ASSETS |
|
|
Current assets |
|
|
Cash and equivalents (note 14a) |
$ |
5,672 |
|
$ |
5,188 |
|
Accounts receivable |
|
530 |
|
|
558 |
|
Inventories |
|
1,776 |
|
|
1,878 |
|
Other current assets |
|
470 |
|
|
519 |
|
Total current assets (excluding assets classified as held for
sale) |
$ |
8,448 |
|
$ |
8,143 |
|
Assets classified as held for sale (note 4a) |
|
336 |
|
|
— |
|
Total current assets |
$ |
8,784 |
|
$ |
8,143 |
|
Non-current assets |
|
|
Equity in investees (note 12) |
|
4,646 |
|
|
4,670 |
|
Property, plant and equipment |
|
24,628 |
|
|
24,628 |
|
Goodwill |
|
4,769 |
|
|
4,769 |
|
Intangible assets |
|
168 |
|
|
169 |
|
Deferred income tax assets |
|
58 |
|
|
98 |
|
Non-current portion of inventory |
|
2,482 |
|
|
2,566 |
|
Other assets |
|
1,313 |
|
|
1,463 |
|
Total assets |
$ |
46,848 |
|
$ |
46,506 |
|
LIABILITIES AND EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$ |
1,168 |
|
$ |
1,458 |
|
Debt |
|
13 |
|
|
20 |
|
Current income tax liabilities |
|
606 |
|
|
436 |
|
Other current liabilities |
|
271 |
|
|
306 |
|
Total current liabilities (excluding liabilities classified as held
for sale) |
$ |
2,058 |
|
$ |
2,220 |
|
Liabilities classified as held for sale (note 4a) |
|
273 |
|
|
— |
|
Total current liabilities |
$ |
2,331 |
|
$ |
2,220 |
|
Non-current liabilities |
|
|
Debt |
|
5,140 |
|
|
5,135 |
|
Provisions |
|
2,926 |
|
|
3,139 |
|
Deferred income tax liabilities |
|
3,085 |
|
|
3,034 |
|
Other liabilities |
|
1,287 |
|
|
1,268 |
|
Total liabilities |
$ |
14,769 |
|
$ |
14,796 |
|
Equity |
|
|
Capital stock (note 16) |
$ |
29,238 |
|
$ |
29,236 |
|
Deficit |
|
(7,571 |
) |
|
(7,949 |
) |
Accumulated other comprehensive loss |
|
(33 |
) |
|
14 |
|
Other |
|
2,040 |
|
|
2,040 |
|
Total equity attributable to Barrick Gold Corporation
shareholders |
$ |
23,674 |
|
$ |
23,341 |
|
Non-controlling interests (note 17) |
|
8,405 |
|
|
8,369 |
|
Total equity |
$ |
32,079 |
|
$ |
31,710 |
|
Contingencies and commitments (notes 5 and 18) |
|
|
Total liabilities and equity |
$ |
46,848 |
|
$ |
46,506 |
|
The notes to these unaudited condensed interim
financial statements, which are contained in the First Quarter
Report 2021 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, 2021 |
1,778,190 |
|
$29,236 |
|
($7,949 |
) |
|
$14 |
|
|
$2,040 |
|
$23,341 |
|
|
$8,369 |
|
|
$31,710 |
|
Net income |
— |
|
— |
|
538 |
|
|
— |
|
|
— |
|
538 |
|
|
292 |
|
|
830 |
|
Total other comprehensive income (loss) |
— |
|
— |
|
— |
|
|
(47 |
) |
|
— |
|
(47 |
) |
|
— |
|
|
(47 |
) |
Total comprehensive income (loss) |
— |
|
— |
|
538 |
|
|
(47 |
) |
|
— |
|
491 |
|
|
292 |
|
|
783 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
— |
|
(158 |
) |
|
— |
|
|
— |
|
(158 |
) |
|
— |
|
|
(158 |
) |
Issued on exercise of stock options |
50 |
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
Funding from non-controlling interests (note 17) |
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
6 |
|
|
6 |
|
Disbursements to non-controlling interests (note 17) |
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
(262 |
) |
|
(262 |
) |
Dividend reinvestment plan (note 16) |
72 |
|
2 |
|
(2 |
) |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
Share-based payments |
59 |
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
Total transactions with owners |
181 |
|
2 |
|
(160 |
) |
|
— |
|
|
— |
|
(158 |
) |
|
(256 |
) |
|
(414 |
) |
At March 31, 2021 |
1,778,371 |
|
$29,238 |
|
($7,571 |
) |
|
($33 |
) |
|
$2,040 |
|
$23,674 |
|
|
$8,405 |
|
|
$32,079 |
|
|
|
|
|
|
|
|
|
|
At January 1, 2020 |
1,777,927 |
|
$29,231 |
|
($9,722 |
) |
|
($122 |
) |
|
$2,045 |
|
$21,432 |
|
|
$8,395 |
|
|
$29,827 |
|
Net income |
— |
|
— |
|
400 |
|
|
— |
|
|
— |
|
400 |
|
|
263 |
|
|
663 |
|
Total other comprehensive income (loss) |
— |
|
— |
|
— |
|
|
(25 |
) |
|
— |
|
(25 |
) |
|
— |
|
|
(25 |
) |
Total comprehensive income (loss) |
— |
|
— |
|
400 |
|
|
(25 |
) |
|
— |
|
375 |
|
|
263 |
|
|
638 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
— |
|
(122 |
) |
|
— |
|
|
— |
|
(122 |
) |
|
— |
|
|
(122 |
) |
Issuance of 16% interest in Tanzania mines |
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
234 |
|
|
234 |
|
Issued on exercise of stock options |
30 |
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
Funding from non-controlling interests |
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
1 |
|
|
1 |
|
Disbursements to non-controlling interests |
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
(225 |
) |
|
(225 |
) |
Dividend reinvestment plan |
78 |
|
2 |
|
(2 |
) |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
Share-based payments |
— |
|
— |
|
— |
|
|
— |
|
|
2 |
|
2 |
|
|
— |
|
|
2 |
|
Total transactions with owners |
108 |
|
2 |
|
(124 |
) |
|
— |
|
|
2 |
|
(120 |
) |
|
10 |
|
|
(110 |
) |
At March 31, 2020 |
1,778,035 |
|
$29,233 |
|
($9,446 |
) |
|
($147 |
) |
|
$2,047 |
|
$21,687 |
|
|
$8,668 |
|
|
$30,355 |
|
1 Includes cumulative translation losses at March 31,
2021: $95 million (December 31, 2020: $95 million;
March 31, 2020: $92 million).2 Includes additional
paid-in capital as at March 31, 2021: $2,002 million
(December 31, 2020: $2,002 million; March 31, 2020:
$2,009 million).
The notes to these unaudited condensed interim financial
statements, which are contained in the First Quarter Report 2021
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 Steven Yopps, MMSA,
Manager of Growth Projects, Nevada Gold Mines; Craig Fiddes,
SME-RM, Manager – Resource Modeling, Nevada Gold Mines; Chad
Yuhasz, P.Geo, Mineral Resource Manager, Latin America & Asia
Pacific; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral
Resources Manager: Africa & Middle East; Rodney Quick, MSc, Pr.
Sci.Nat, Mineral Resource Management and Evaluation Executive; John
Steele, CIM, Metallurgy, Engineering and Capital Projects
Executive; and Rob Krcmarov, FAusIMM, Executive Vice President,
Exploration and Growth – each a “Qualified Person” as defined in
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
Endnotes
Endnote 1A Tier One Gold Asset is an asset with
a reserve potential to deliver a minimum 10-year life, annual
production of at least 500,000 ounces of gold and total cash costs
per ounce over the mine life that are in the lower half of the
industry cost curve.
Endnote 2Calculated as cash ($5,672 million)
less debt ($5,153 million).
Endnote 3“Free cash flow” is a non-GAAP
financial performance measure that deducts capital expenditures
from net cash provided by operating activities. Barrick believes
this to be a useful indicator of our ability to operate without
reliance on additional borrowing or usage of existing cash. Free
cash flow is intended to provide additional information only and
does not have any standardized meaning under IFRS and may not be
comparable to similar measures of performance presented by other
companies. Free cash flow should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. Further details on this non-GAAP measure are provided in
the MD&A accompanying Barrick’s financial statements filed from
time to time on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
Reconciliation of Net Cash Provided by
Operating Activities to Free Cash Flow
($
millions) |
For the three months ended |
|
|
3/31/21 |
|
12/31/20 |
|
3/31/20 |
|
Net cash provided by operating activities |
1,302 |
|
1,638 |
|
889 |
|
Capital expenditures |
(539 |
) |
(546 |
) |
(451 |
) |
Free cash flow |
763 |
|
1,092 |
|
438 |
|
Endnote 4The declaration and payment of
dividends is at the discretion of the Board of Directors, and will
depend on the company’s financial results, cash requirements,
future prospects and other factors deemed relevant by the
Board.
Endnote 5Forecast yield for 2021 is based on
the current quarterly dividend rate ($0.09 per share) and a return
of capital distribution per share ($0.42) calculated based on our
issued and outstanding shares as of March 31, 2021, which is
subject to change.
Endnote 6“Adjusted net earnings” and “adjusted
net earnings per share” are non-GAAP financial performance
measures. Adjusted net earnings excludes the following from net
earnings: certain impairment charges (reversals) related to
intangibles, goodwill, property, plant and equipment, and
investments; gains (losses) and other one-time costs relating to
acquisitions or dispositions; foreign currency translation gains
(losses); significant tax adjustments not related to current period
earnings; and the tax effect and non-controlling interest of these
items. The Company uses this measure internally to evaluate our
underlying operating performance for the reporting periods
presented and to assist with the planning and forecasting of future
operating results. Barrick believes that adjusted net earnings is a
useful measure of our performance because these adjusting items do
not reflect the underlying operating performance of our core mining
business and are not necessarily indicative of future operating
results. Adjusted net earnings and adjusted net earnings per share
are intended to provide additional information only and do not have
any standardized meaning under IFRS and may not be comparable to
similar measures of performance presented by other companies. They
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Further
details on these non-GAAP measures are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to Net Earnings per
Share, Adjusted Net Earnings and Adjusted Net Earnings per
Share
($
millions, except per share amounts in dollars) |
For the three months ended |
|
|
3/31/21 |
|
12/31/20 |
|
3/31/20 |
|
Net earnings attributable to equity holders of the Company |
538 |
|
685 |
|
400 |
|
Impairment charges (reversals)
related to intangibles, goodwill, property, plant and equipment,
and investmentsa |
(89 |
) |
40 |
|
(336 |
) |
Acquisition/disposition
(gains) lossesb |
(3 |
) |
(126 |
) |
(60 |
) |
Loss (gain) on currency
translation |
4 |
|
16 |
|
16 |
|
Significant tax adjustmentsc |
47 |
|
(2 |
) |
(44 |
) |
Other expense adjustmentsd |
11 |
|
15 |
|
98 |
|
Tax
effect and non-controlling intereste |
(1 |
) |
(12 |
) |
211 |
|
Adjusted net earnings |
507 |
|
616 |
|
285 |
|
Net earnings per sharef |
0.30 |
|
0.39 |
|
0.22 |
|
Adjusted net earnings per sharef |
0.29 |
|
0.35 |
|
0.16 |
|
a. |
For the three month period ended March 31, 2021, net impairment
reversals primarily relate to non-current asset reversals at
Lagunas Norte. Net impairment charges (reversals) for the
three month periods ended December 31, 2020 and March 31, 2020
mainly relate to non-current assets at our Tanzanian assets. |
b. |
Acquisition/disposition gains for
the three month period ended December 31, 2020 primarily relate to
the gain on the sale of Eskay Creek, Morila and Bullfrog. For
the three months ended March 31, 2020, acquisition/disposition
gains mainly relate to the gain on the sale of Massawa. |
c. |
Significant tax adjustments for
the three month period ended March 31, 2021 mainly relates to the
remeasurement of deferred tax balances for changes in foreign
currency rates and the recognition/derecognition of our deferred
taxes in various jurisdictions. For the three months ended
March 31, 2020, significant tax adjustments primarily relate to
deferred tax recoveries as a result of tax reform measures in
Argentina and adjustments made in recognition of the net settlement
of all outstanding disputes with the Government of Tanzania. |
d. |
Other expense adjustments for the
three month periods ended March 31, 2021 and December 31, 2020
mainly relate to care and maintenance expenses at Porgera.
For the three months ended March 31, 2020, other expense
adjustments primarily relate to the impact of changes in the
discount rate assumptions on our closed mine rehabilitation
provision and losses on debt extinguishment. |
e. |
Tax effect and non-controlling
interest for the three month period ended March 31, 2020 primarily
relates to the net impairment reversals related to long-lived
assets and acquisition gains. |
f. |
Calculated using weighted average
number of shares outstanding under the basic method of earnings per
share. |
Endnote 7“Realized price” is a non-GAAP
financial measure which excludes from sales: unrealized gains and
losses on non-hedge derivative contracts; unrealized mark-to-market
gains and losses on provisional pricing from copper and gold sales
contracts; sales attributable to ore purchase arrangements;
treatment and refining charges; export duties; and cumulative
catch-up adjustments to revenue relating to our streaming
arrangements. This measure is intended to enable Management to
better understand the price realized in each reporting period for
gold and copper sales because unrealized mark-to-market values of
non-hedge gold and copper derivatives are subject to change each
period due to changes in market factors such as market and forward
gold and copper prices, so that prices ultimately realized may
differ from those recorded. The exclusion of such unrealized
mark-to-market gains and losses from the presentation of this
performance measure enables investors to understand performance
based on the realized proceeds of selling gold and copper
production. 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. Further details on these non-GAAP measures are provided
in the MD&A accompanying Barrick’s financial statements filed
from time to time on SEDAR at www.sedar.com 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 |
|
3/31/21 |
|
12/31/20 |
|
3/31/20 |
|
3/31/21 |
12/31/20 |
3/31/20 |
Sales |
2,641 |
|
3,028 |
|
2,593 |
|
256 |
195 |
99 |
Sales applicable to
non-controlling interests |
(814 |
) |
(934 |
) |
(770 |
) |
0 |
0 |
0 |
Sales applicable to equity
method investmentsa,b |
154 |
|
168 |
|
147 |
|
170 |
135 |
107 |
Realized non-hedge gold/copper
derivative (losses) gains |
0 |
|
0 |
|
0 |
|
0 |
0 |
0 |
Sales applicable to sites in
care and maintenancec |
(41 |
) |
(41 |
) |
(46 |
) |
0 |
0 |
0 |
Treatment and refinement
charges |
0 |
|
1 |
|
0 |
|
41 |
39 |
39 |
Otherd |
0 |
|
(1 |
) |
15 |
|
0 |
0 |
0 |
Revenues – as adjusted |
1,940 |
|
2,221 |
|
1,939 |
|
467 |
369 |
245 |
Ounces/pounds sold (000s ounces/millions pounds)c |
1,093 |
|
1,186 |
|
1,220 |
|
113 |
108 |
110 |
Realized gold/copper price per ounce/pounde |
1,777 |
|
1,871 |
|
1,589 |
|
4.12 |
3.39 |
2.23 |
a. |
Represents sales of $154 million for the three month period ended
March 31, 2021 (December 31, 2020: $168 million and
March 31, 2020: $140 million) applicable to our 45% equity
method investment in Kibali for gold. Represents sales of $109
million for the three months ended March 31, 2021
(December 31, 2020: $82 million and March 31, 2020: $72
million) applicable to our 50% equity method investment in Zaldívar
and $65 million (December 31, 2020: $59 million and
March 31, 2020: $40 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. |
Figures exclude: Pierina, Lagunas
Norte, Golden Sunlight, and Morila up until its divestiture in
November 2020 from the calculation of realized price per
ounce. These assets are producing incidental ounces. |
d. |
Represents a cumulative catch-up
adjustment to revenue relating to our streaming arrangements.
Refer to note 2f of the 2020 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 8On an attributable basis.
Endnote 9Net earnings represents net earnings
attributable to the equity holders of the Company.
Endnote 10These amounts are presented on the
same basis as our guidance.
Endnote 11Gold cost of sales per ounce is
calculated as cost of sales across our gold operations (excluding
sites in care and maintenance) divided by ounces sold (both on an
attributable basis using Barrick's ownership share). 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“Total cash costs” per ounce, “All-in
sustaining costs” per ounce and "All-in costs" per ounce are
non-GAAP financial performance measures. “Total cash costs” per
ounce starts with 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”
per ounce start with “Total cash costs” per ounce and add further
costs which reflect the expenditures made to maintain current
production levels, primarily sustaining capital expenditures,
sustaining leases, general & administrative costs, minesite
exploration and evaluation costs, and reclamation cost accretion
and amortization. "All-in costs" per ounce starts with "All-in
sustaining costs" per ounce and adds additional costs that reflect
the varying costs of producing gold over the life-cycle of a mine,
including: project capital expenditures and other 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 investors, analysts and other stakeholders 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 any
standardized meaning under IFRS. Although a standardized definition
of all-in sustaining costs was published in 2013 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), it is not a regulatory organization, and
other companies may calculate this measure differently. These
measures should not be considered in isolation or as a substitute
for measures prepared in accordance with IFRS. Further details on
these non-GAAP measures are provided in the MD&A accompanying
Barrick’s financial statements filed from time to time on SEDAR at
www.sedar.com 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 |
3/31/21 |
|
12/31/20 |
|
3/31/20 |
|
Cost of sales applicable to gold production |
|
1,571 |
|
1,681 |
|
1,643 |
|
Depreciation |
|
(454 |
) |
(495 |
) |
(474 |
) |
Cash cost of sales applicable to equity method investments |
|
59 |
|
69 |
|
52 |
|
By-product credits |
|
(59 |
) |
(56 |
) |
(29 |
) |
Realized (gains) losses on hedge and non-hedge derivatives |
a |
0 |
|
(1 |
) |
0 |
|
Non-recurring items |
b |
0 |
|
1 |
|
0 |
|
Other |
c |
(33 |
) |
(55 |
) |
(27 |
) |
Non-controlling interests |
d |
(302 |
) |
(323 |
) |
(316 |
) |
Total cash costs |
|
782 |
|
821 |
|
849 |
|
General & administrative costs |
|
38 |
|
24 |
|
40 |
|
Minesite exploration and evaluation costs |
e |
16 |
|
22 |
|
15 |
|
Minesite sustaining capital expenditures |
f |
405 |
|
354 |
|
370 |
|
Sustaining leases |
|
13 |
|
12 |
|
0 |
|
Rehabilitation - accretion and amortization (operating sites) |
g |
11 |
|
11 |
|
14 |
|
Non-controlling interest, copper operations and other |
h |
(154 |
) |
(142 |
) |
(125 |
) |
All-in
sustaining costs |
|
1,111 |
|
1,102 |
|
1,163 |
|
Project exploration and evaluation and project costs |
e |
45 |
|
52 |
|
56 |
|
Community relations costs not related to current operations |
|
0 |
|
0 |
|
1 |
|
Project capital expenditures |
f |
131 |
|
184 |
|
76 |
|
Non-sustaining leases |
|
0 |
|
4 |
|
0 |
|
Rehabilitation - accretion and amortization (non-operating
sites) |
g |
3 |
|
4 |
|
2 |
|
Non-controlling interest and copper operations and other |
h |
(42 |
) |
(61 |
) |
(33 |
) |
All-in
costs |
|
1,248 |
|
1,285 |
|
1,265 |
|
Ounces sold - equity basis (000s ounces) |
i |
1,093 |
|
1,186 |
|
1,220 |
|
Cost of sales per ounce |
j,k |
1,073 |
|
1,065 |
|
1,020 |
|
Total cash costs per ounce |
k |
716 |
|
692 |
|
692 |
|
Total
cash costs per ounce (on a co-product basis) |
k,l |
746 |
|
718 |
|
705 |
|
All-in sustaining costs per
ounce |
k |
1,018 |
|
929 |
|
954 |
|
All-in
sustaining costs per ounce (on a co-product basis) |
k,l |
1,048 |
|
955 |
|
967 |
|
All-in costs per ounce |
k |
1,144 |
|
1,083 |
|
1,035 |
|
All-in
costs per ounce (on a co-product basis) |
k,l |
1,174 |
|
1,109 |
|
1,048 |
|
a. |
Realized (gains) losses on hedge and non-hedge
derivativesIncludes realized hedge losses of $nil for the
three month period ended March 31, 2021 (December 31,
2020: $nil and March 31, 2020: $nil), and realized non-hedge
losses of $nil for the three month period ended March 31, 2021
(December 31, 2020: gains of $1 million and March 31,
2020: $nil). Refer to Note 5 to the Financial Statements for
further information. |
|
|
b. |
Non-recurring
itemsThese costs are not indicative of our cost of
production and have been excluded from the calculation of total
cash costs. |
|
|
c. |
OtherOther
adjustments for the three month period ended March 31, 2021
include the removal of total cash costs and by-product credits
associated with Pierina, Lagunas Norte, Golden Sunlight and Morila
up until its divestiture in November 2020, which all are producing
incidental ounces, of $24 million (December 31, 2020: $26
million; March 31, 2020: $25 million). |
|
|
d. |
Non-controlling
interestsNon-controlling interests include non-controlling
interests related to gold production of $462 million for the three
month period ended March 31, 2021 (December 31, 2020:
$490 million and March 31, 2020: $466 million).
Non-controlling interests include Nevada Gold Mines, Pueblo Viejo,
Loulo-Gounkoto, Tongon, North Mara, Bulyanhulu, Buzwagi. Refer to
Note 5 to the Financial Statements for further information. |
|
|
e. |
Exploration and
evaluation costs Exploration, evaluation and
project expenses are presented as minesite sustaining if it
supports current mine operations and project if it relates to
future projects. Refer to page 68 of the Q1 2021 MD&A. |
|
|
f. |
Capital
expenditures Capital expenditures are related to our
gold sites only and are split between minesite sustaining and
project capital expenditures. Project capital expenditures are
distinct projects designed to increase the net present value of the
mine and are not related to current production. Significant
projects in the current year are the expansion project at Pueblo
Viejo and construction of the Third Shaft at Turquoise Ridge. Refer
to page 67 of the Q1 2021 MD&A. |
|
|
g. |
Rehabilitation—accretion
and amortizationIncludes depreciation on the assets
related to rehabilitation provisions of our gold operations and
accretion on the rehabilitation provision of our gold operations,
split between operating and non-operating sites. |
|
|
h. |
Non-controlling interest
and copper operations Removes
general & administrative costs related to non-controlling
interests and copper based on a percentage allocation of revenue.
Also removes exploration, evaluation and project expenses,
rehabilitation costs and capital expenditures incurred by our
copper sites and the non-controlling interest of Nevada Gold Mines
(including South Arturo), Pueblo Viejo, Loulo-Gounkoto, Tongon,
North Mara, Bulyanhulu, and Buzwagi operating segments. It
also includes capital expenditures applicable to our equity method
investment in Kibali. Figures remove the impact of Pierina, Lagunas
Norte and Golden Sunlight. The impact is summarized as the
following: |
($
millions) |
For the three months ended |
|
Non-controlling interest, copper operations and other |
3/31/21 |
|
12/31/20 |
|
3/31/20 |
|
General & administrative costs |
(6 |
) |
(5 |
) |
(6 |
) |
Minesite exploration and
evaluation expenses |
(7 |
) |
(9 |
) |
(3 |
) |
Rehabilitation - accretion and
amortization (operating sites) |
(3 |
) |
(3 |
) |
(4 |
) |
Minesite sustaining capital expenditures |
(138 |
) |
(125 |
) |
(112 |
) |
All-in
sustaining costs total |
(154 |
) |
(142 |
) |
(125 |
) |
Project exploration and
evaluation and project costs |
(1 |
) |
(6 |
) |
(19 |
) |
Project capital expenditures |
(41 |
) |
(55 |
) |
(14 |
) |
All-in
costs total |
(42 |
) |
(61 |
) |
(33 |
) |
i. |
Ounces sold - equity basisFigures remove the
impact of: Pierina, Lagunas Norte, Golden Sunlight, and Morila up
until its divestiture in November 2020, which are producing
incidental ounces. |
|
|
j. |
Cost of sales per
ounceFigures remove the cost of sales impact of: Pierina
of $5 million for the three month period ended March 31, 2021
(December 31, 2020: $4 million and March 31, 2020: $6
million); Golden Sunlight of $nil for the three month period ended
March 31, 2021 (December 31, 2020: $nil and
March 31, 2020: $nil); up until its divestiture in November of
2020, Morila, of $nil for the three month period ended
March 31, 2021 (December 31, 2020: $2 million and
March 31, 2020: $6 million); and Lagunas Norte of $23 million
for the three month period ended March 31, 2021
(December 31, 2020: $26 million and March 31, 2020: $21
million), which are producing incidental ounces. Gold cost of
sales per ounce is calculated as cost of sales across our gold
operations (excluding sites in care and maintenance) divided by
ounces sold (both on an attributable basis using Barrick's
ownership share). |
|
|
k. |
Per ounce
figuresCost of sales per ounce, total cash costs per
ounce, all-in sustaining costs per ounce and all-in costs per ounce
may not calculate based on amounts presented in this table due to
rounding. |
|
|
l. |
Co-product costs per
ounceTotal cash costs per ounce, all-in sustaining costs
per ounce and all-in costs per ounce presented on a co-product
basis removes the impact of by-product credits of our gold
production (net of non-controlling interest) calculated as: |
($
millions) |
For the three months ended |
|
|
3/31/21 |
|
12/31/20 |
|
3/31/20 |
|
By-product credits |
59 |
|
56 |
|
29 |
|
Non-controlling interest |
(26 |
) |
(27 |
) |
(15 |
) |
By-product credits (net of non-controlling interest) |
33 |
|
29 |
|
14 |
|
Endnote 13Copper 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 14“C1 cash costs” per pound and “All-in
sustaining costs” per pound are non-GAAP financial performance
measures. “C1 cash costs” per pound is based on cost of sales but
excludes the impact of depreciation and royalties and production
taxes and includes treatment and refinement charges. “All-in
sustaining costs” per pound begins with “C1 cash costs” per pound
and adds further costs which reflect the additional costs of
operating a mine, primarily sustaining capital expenditures,
general & administrative costs and royalties and production
taxes. Barrick believes that the use of “C1 cash costs” per pound
and “all-in sustaining costs” per pound will assist investors,
analysts, and other stakeholders in understanding the costs
associated with producing copper, understanding the economics of
copper 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. “C1 cash
costs” per pound and “All-in sustaining costs” per pound are
intended to provide additional information only, do not have any
standardized meaning under IFRS, and may not be comparable to
similar measures of performance presented by other companies. These
measures should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS.
Further details on these non-GAAP measures are provided in the
MD&A accompanying Barrick’s financial statements filed from
time to time on SEDAR at www.sedar.com 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 |
|
|
3/31/21 |
|
12/31/20 |
|
3/31/20 |
|
Cost of sales |
136 |
|
125 |
|
124 |
|
Depreciation/amortization |
(48 |
) |
(41 |
) |
(43 |
) |
Treatment and refinement charges |
41 |
|
39 |
|
39 |
|
Cash cost of sales applicable to equity method investments |
79 |
|
72 |
|
66 |
|
Less: royalties and production taxesa |
(23 |
) |
(16 |
) |
(11 |
) |
By-product credits |
(4 |
) |
(5 |
) |
(3 |
) |
Other |
0 |
|
0 |
|
0 |
|
C1 cash costs |
181 |
|
174 |
|
172 |
|
General & administrative costs |
4 |
|
5 |
|
3 |
|
Rehabilitation - accretion and amortization |
1 |
|
1 |
|
3 |
|
Royalties and production taxesa |
23 |
|
16 |
|
11 |
|
Minesite exploration and evaluation costs |
2 |
|
1 |
|
1 |
|
Minesite sustaining capital expenditures |
42 |
|
65 |
|
32 |
|
Sustaining leases |
2 |
|
2 |
|
3 |
|
All-in sustaining costs |
255 |
|
264 |
|
225 |
|
Pounds sold - consolidated basis (millions pounds) |
113 |
|
108 |
|
110 |
|
Cost of
sales per poundb,c |
2.11 |
|
2.06 |
|
1.96 |
|
C1 cash
cost per poundb |
1.60 |
|
1.61 |
|
1.55 |
|
All-in
sustaining costs per poundb |
2.26 |
|
2.42 |
|
2.04 |
|
a. |
For the three month period ended March 31, 2021, royalties and
production taxes include royalties of $23 million
(December 31, 2020: $16 million and March 31, 2020: $11
million). |
b. |
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. |
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). |
Endnote 15Return of capital distribution per
share amounts are based on issued and outstanding Barrick shares as
of March 31, 2021 and are subject to change.
Endnote 16Source: Mining Intelligence and
Company Reports. Based on 2020 production.
Endnote 17On a 100% basis.
Endnote 18Included within our 61.5% interest in
Carlin is NGM's 60% interest in South Arturo.
Endnote 19Includes Goldrush.
Endnote 20Porgera was placed on temporary care
and maintenance in April 2020 and remains excluded from our 2021
guidance. On April 9, 2021, the Government of Papua New Guinea and
BNL, the operator of the Porgera joint venture, signed a binding
Framework Agreement in which they agreed on a partnership for
Porgera's future ownership and operation. We expect to update our
guidance to include Porgera following both the execution of
definitive agreements to implement the Framework Agreement and the
finalization of a timeline for the resumption of full mine
operations.
Endnote 21Total cash costs and all-in
sustaining costs per ounce include the impact of hedges and/or
costs allocated to non-operating sites.
Endnote 22Operating 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, Lagunas Norte, and Golden Sunlight, which
are producing incidental ounces while in closure or care and
maintenance.
Endnote 23Includes corporate administration
costs.
Endnote 24Reflects the impact of the full
year.
Endnote 25EBITDA is a non-GAAP financial
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; other expense adjustments; and 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. EBITDA and adjusted EBITDA are
intended to provide additional information only and do not have any
standardized meaning under IFRS and may not be comparable to
similar measures of performance presented by other companies. They
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Further
details on these non-GAAP measures are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to EBITDA and Adjusted
EBITDA
($
millions) |
For the three months ended |
|
|
3/31/21 |
|
12/31/20 |
|
3/31/20 |
|
Net earnings |
830 |
|
1,058 |
|
663 |
|
Income tax expense |
374 |
|
404 |
|
386 |
|
Finance costs, neta |
77 |
|
72 |
|
88 |
|
Depreciation |
507 |
|
544 |
|
524 |
|
EBITDA |
1,788 |
|
2,078 |
|
1,661 |
|
Impairment charges (reversals)
of long-lived assetsb |
(89 |
) |
40 |
|
(336 |
) |
Acquisition/disposition
(gains) lossesc |
(3 |
) |
(126 |
) |
(60 |
) |
Loss on currency translation |
4 |
|
16 |
|
16 |
|
Other expense (income)
adjustmentsd |
11 |
|
15 |
|
98 |
|
Income tax expense, net finance costs, and depreciation from equity
investees |
89 |
|
83 |
|
87 |
|
Adjusted EBITDA |
1,800 |
|
2,106 |
|
1,466 |
|
a. |
Finance costs exclude accretion. |
b. |
For the three month period ended
March 31, 2021, net impairment reversals primarily relate to
non-current asset reversals at Lagunas Norte. Net impairment
charges (reversals) for the three month periods ended December 31,
2020 and March 31, 2020 mainly relate to non-current assets at our
Tanzanian assets. |
c. |
Acquisition/disposition gains for
the three month period ended December 31, 2020 primarily relate to
the gain on the sale of Eskay Creek, Morila and Bullfrog. For
the three months ended March 31, 2020, acquisition/disposition
gains mainly relate to the gain on the sale of Massawa. |
d. |
Other expense adjustments for the
three month periods ended March 31, 2021 and December 31, 2020
mainly relate to care and maintenance expenses at Porgera.
For the three months ended March 31, 2020, other expense
adjustments primarily relate to the impact of changes in the
discount rate assumptions on our closed mine rehabilitation
provision and losses on debt extinguishment. |
Corporate Office
Barrick Gold Corporation161 Bay Street, Suite
3700Toronto, Ontario M5J 2S1Canada
Telephone: +1 416 861-9911Email: investor@barrick.comWebsite:
www.barrick.com
Shares Listed
GOLD The New York Stock Exchange
ABX The Toronto Stock Exchange
Transfer Agents and Registrars
AST Trust Company (Canada)P.O. Box 700, Postal
Station BMontreal, Quebec H3B 3K3or American Stock
Transfer & Trust Company, LLC6201 – 15 AvenueBrooklyn,
New York 11219
Telephone: 1-800-387-0825Fax: 1-888-249-6189Email:
inquiries@astfinancial.comWebsite: www.astfinancial.com
Enquiries
President and Chief Executive OfficerMark
Bristow+1 647 205 7694+44 788 071 1386
Senior Executive Vice-President and Chief Financial
OfficerGraham Shuttleworth+1 647 262 2095+44 779
771 1338
Investor and Media RelationsKathy du Plessis+44
20 7557 7738Email: barrick@dpapr.com
Cautionary Statement on Forward-Looking
Information
Certain information contained or incorporated by reference in
this press release, including any information as to our strategy,
projects, plans or future financial or operating performance,
constitutes “forward-looking statements”. All statements, other
than statements of historical fact, are forward-looking statements.
The words “deliver”, "plan", "objective", "expected", “potential”,
“strategy”, “will”, "continues", “ongoing” 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 and estimates of future costs; mine life and
production rates; Barrick’s response to the government of Papua New
Guinea’s decision not to extend Porgera’s Special Mining Lease; the
terms of a new partnership for Porgera’s future ownership and
operation under the Framework Agreement between Papua New Guinea
and BNL, and the timeline for execution of definitive agreements
and formation of a new joint venture to implement the Framework
Agreement and recommence operations at Porgera; the duration
of the temporary suspension of operations at Porgera; potential
mineralization; potential exploration targets and mineral resource
potential, including reserve replenishment; the new joint venture
with the Government of Tanzania and the potential for Barrick’s
North Mara and Bulyanhulu mines to become a Tier One complex; the
timing and amount of Barrick’s return of capital distributions;
future dividend and yield levels; Barrick’s engagement with local
communities to manage the Covid-19 pandemic; Barrick’s strategy,
plans, targets and goals in respect of environmental and social
governance issues, including climate change, greenhouse gas
emissions reduction targets, tailings storage facility management
and conservation efforts; future investments in community projects
and contributions to local economies; Barrick’s human capital
management strategy; the development of the third underground mine
at Gounkoto and the timeline for first production; 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); the speculative nature
of mineral exploration and development; changes in mineral
production performance, exploitation and exploration successes;
risks associated with projects in the early stages of evaluation
and for which additional engineering and other analysis is
required; the benefits expected from recent transactions being
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; non-renewal of key licenses by
governmental authorities, including non-renewal of Porgera’s
Special Mining Lease; timing of receipt of, or failure to comply
with, necessary permits and approvals; uncertainty whether some or
all of Barrick's 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; adverse changes in our credit
ratings; the impact of inflation; fluctuations in the currency
markets; changes in U.S. dollar interest rates; risks arising from
holding derivative instruments; 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; risks associated with illegal
and artisanal mining; risks associated with new diseases, epidemics
and pandemics, including the effects and potential effects of the
global Covid-19 pandemic; disruption of supply routes which may
cause delays in construction and mining activities; 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; 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, including our ability to successfully reintegrate the
operations of the former Acacia; 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 2021
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. 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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