Despite the challenges posed by the global Covid-19 pandemic,
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick”) has
emerged even stronger and made significant progress towards
becoming the world’s most valued gold company since its
transformational merger with Randgold Resources only two years ago,
says Executive Chairman John Thornton in the company’s 2021
Information Circular published today and available now at
www.barrick.com/agm and also filed on SEDAR (www.sedar.com) and
EDGAR (www.sec.gov).
Led by President and Chief Executive Officer
Mark Bristow, the Barrick team built on 2019’s excellent
performance by capitalizing fully on the higher gold price,
delivering on the company’s production guidance, and ending 2020
with one of the industry’s strongest balance sheets. Barrick
increased the quarterly dividend three-fold since the announcement
of the merger in September 2018 and proposes to return $750 million
in surplus funds to shareholders through a return of capital over
the course of 2021, as described in the Information Circular.
Bristow said a company that was burdened by net
debt of more than $13 billion as recently as 2013 now had zero net
debt, no significant maturities for the next 10 years and a robust
balance sheet, with strong liquidity consisting of $5.2 billion in
cash and an undrawn $3 billion credit facility.
“Efficient operations and effective management
enabled us to capitalize fully on the higher gold and copper prices
and to pass the rewards on to our investors as well as our
community stakeholders. These achievements were produced on the
foundation of a solid 10-year plan built on a great asset base, a
fit-for-purpose structure and management teams that more than lived
up to our ‘best people’ mantra,” he said.
In the Information Circular, Lead Independent
Director Brett Harvey emphasized that the Board believes good
corporate governance is foundational to Barrick’s long-term success
and that the Board’s work is guided by three core principles:
stakeholder engagement, feedback from fellow owners, and applying
rigorous oversight to each aspect of the business including
pandemic-related risks. The Board was closely involved with
Barrick’s response to the Covid-19 pandemic and effectively managed
and mitigated the impact of the pandemic on Barrick’s people,
business, and communities. Operating responsibly, however, is not
something new for Barrick. Barrick has set the sustainability
standard for the industry as the first mining company to publish a
Sustainability Scorecard as part of its annual sustainability
report last April.
The Information Circular also highlights Board
renewal and an increase in diversity including gender diversity
since the merger. During these two years Barrick has added two new
Directors to the Board of ten. They are highly qualified women who
were identified through a rigorous search and selection process
overseen by the Corporate Governance & Nominating Committee: Ms
Loreto Silva, who has significant expertise in large-scale
infrastructure projects and wide-ranging experience in legal and
government affairs with a specific focus on South America; and Ms
Anne Kabagambe, whose perspective on doing business internationally
is informed by her experience in engaging with governments, the
private sector and civil society as well as her knowledge of the
global resource, banking, and education sectors through her
previous role as an Executive Director of the World Bank
representing the interests of 22 Sub-Saharan African countries. In
addition, the Board has approved amendments to Barrick’s Diversity
Policy to include an aspirational target for women to represent at
least 30% of directors by the end of 2022. The Information Circular
notes that the Corporate Governance & Nominating Committee is
currently searching for an additional compelling and qualified
female candidate to appoint to the Board.
The Information Circular also highlights
Barrick’s executive compensation policies and programs, noting that
they are designed to reward sustained, industry-leading performance
delivery and to drive accountability through share ownership: as
meaningful shareholders, the executive team is focused on and
invested in Barrick’s long-term value creation. Barrick’s
cornerstone Performance Granted Share Unit (PGSU) Plan was updated
to accelerate employee share ownership through a phased vesting
schedule and to provide access to awards, subject to the
achievement of market-leading performance requirements. To
reinforce Barrick’s commitment to maintaining market-leading share
ownership requirements, Barrick’s partners are now required to hold
at least 50% of their minimum share ownership requirement in actual
Barrick shares. In addition, 25% of all PGSU awards have been
linked to Barrick’s sustainability performance, as assessed by its
industry-leading Sustainability Scorecard, and 10% to the evolution
of the company’s human capital strategy.
Due to the ongoing unprecedented public health
concerns related to the global pandemic and to mitigate health
risks to all stakeholders, Barrick will again hold its 2021 Annual
and Special Meeting of Shareholders entirely online. The company
will monitor the situation closely and provide a physical location
if conditions allow. The Information Circular details how to
attend, participate, and vote at the virtual meeting.
Barrick’s 2021 Annual and Special Meeting of
Shareholders will be held on May 4, 2021 at 10:00 am (Toronto time)
at web.lumiagm.com/492500406. A live webcast of the meeting will
also be available at www.barrick.com/agm.
Enquiries:
Mark BristowPresident and CEO+1
647 205 7694+ 44 788 071 1386
Graham ShuttleworthSenior EVP
and CFO+1 647 262 2095+44 779 771 1338
Kathy du PlessisInvestor and
Media Relations+44 20 7557 7738Email: barrick@dpapr.com
Website: www.barrick.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 “continue”, “propose”,
“project”, “opportunity”, “growth”, “believe”, “expect”, “will”,
“can”, “could”, “would” and similar expressions identify
forward-looking statements. In particular, this press release
contains forward-looking statements including, without limitation,
with respect to: Barrick’s vision to be the world’s most valued
gold company; forward-looking production guidance including with
respect to Barrick’s 10-year gold production profile and balance
sheet; the proposed return of capital distribution, including the
timing and amount of the distribution; the anticipated benefits of
Barrick’s sustainability strategy, Board diversity initiatives, and
approach to executive compensation; Barrick’s long-term growth
opportunities and potential value to be realized from those
opportunities; and the Company’s intention to make a physical
location available on May 4, 2021 for the Annual and Special
Meeting of Shareholders if circumstances related to Covid-19
allow.
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; disruption of supply routes which may cause delays in
construction and mining activities at Barrick’s more remote
properties; 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 licences by
governmental authorities, including non-renewal of Porgera’s
Special Mining Lease; 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; timing of receipt of, or failure to comply with,
necessary permits and approvals; uncertainty whether some or
targeted investments and projects will meet the Company’s capital
allocation objectives and internal hurdle rate; 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; 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; risk of loss due to acts of war, terrorism, sabotage
and civil disturbances; litigation; contests over title to
properties, particularly title to undeveloped properties, or over
access to water, power and other required infrastructure; our
ability to successfully integrate acquisitions or complete
divestitures; risks associated with working with partners in
jointly controlled assets; employee relations including loss of key
employees; increased costs and physical risks, including extreme
weather events and resource shortages, related to climate change;
and availability and increased costs associated with mining inputs
and labor. Barrick also cautions that its 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 the company’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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