A stronger Q2 performance across the portfolio has kept Barrick on
course to achieve its annual gold and copper production guidance
while continuing to progress its key growth projects.
Gold production for the quarter was higher than Q1 at
1.04 million ounces — driven mainly by Carlin and Turquoise
Ridge in Nevada, Veladero in Argentina, and Bulyanhulu and North
Mara in Tanzania — and is expected to grow further in the second
half of the year. Copper production came to 120 million
pounds.
Operating cash flow was $924 million and free cash flow1 was
$169 million for the quarter. Net earnings per share were $0.27 and
adjusted net earnings per share2 were $0.24. A dividend of $0.20
per share was declared for the quarter on the back of the strong
operating performance and net cash of $636 million.3 During
the quarter, Barrick repurchased $182 million in shares under the
$1 billion share buy-back scheme introduced earlier this year. It
also repatriated the balance of Kibali’s surplus cash from the
Democratic Republic of Congo.
In the Dominican Republic, the Pueblo Viejo
expansion project advanced with the commencement of the public
consultation process and the selection of a preferred site for the
new tailings storage facility, subject to the completion of an
environmental and social impact assessment. The massive project has
the potential to extend the mine’s life to 2040 and beyond with an
estimated minimum average annual production of 800,000
ounces.12
In Nevada, the public review period of the
Goldrush project has started with the record of decision expected
in the first half of 2023, when the production timetable will be
confirmed. The definitive agreements underlying the framework
agreement between Barrick and the governments of Pakistan and
Balochistan on the Reko Diq project are being finalized. Once this
process has been completed and the necessary legalization steps
have been taken, Barrick will update its feasibility study on what
is one of world’s largest undeveloped copper-gold deposits, with
first production expected in 2027/2028.
Barrick is continuing to expand its global
exploration footprint with a strengthened team. In North America
the search has extended from Nevada to active projects in Canada.
The intensified exploration drive in Latin America led to an entry
into the Guiana Shield, and in Africa & the Middle East, new
projects have been initiated in Zambia, Tanzania and Egypt. A new
Asia Pacific team is making progress at Reko Diq, as well as Japan,
while also looking for fresh opportunities elsewhere in this
region.
Reviewing the quarter, president and chief
executive Mark Bristow said the critical scrutiny of ESG and
sustainability disclosures was intensifying in a climate of
skepticism about so-called greenwashing. Against this background,
Barrick’s annual Sustainability Scorecard, an industry first,
continues to report the group’s performance transparently and
objectively against a wide range of standard metrics.
“We’ve taken the leadership in integrating the
various aspects of ESG and managing these complex issues in a
measured and holistic manner,” he said.
“There are challenging times ahead, but Barrick
faces them with strong and agile leadership, a robust balance
sheet, solid Life of Mine plans, a reliable cash flow and a
strategy focused on sustainability and value creation.”
KEY PERFORMANCE INDICATORS
Financial and Operating
Highlights
Financial Results |
Q2 2022 |
Q1 2022 |
Q2 2021 |
|
Realized gold price4,5 ($ per ounce) |
1,861 |
1,876 |
1,820 |
|
Net earnings($ millions) |
488 |
438 |
411 |
|
Adjusted net earnings2 ($
millions) |
419 |
463 |
513 |
|
Net cash provided by operating
activities($ millions) |
924 |
1,004 |
639 |
|
Free cash flow1 ($
millions) |
169 |
393 |
(19 |
) |
Net earnings per share($) |
0.27 |
0.25 |
0.23 |
|
Adjusted net earnings per
share2($) |
0.24 |
0.26 |
0.29 |
|
Attributable capital expenditures6,7($ millions) |
587 |
478 |
518 |
|
Operating Results |
Q2 2022 |
Q1 2022 |
Q2 2021 |
|
Gold |
|
|
|
Production5 (000s of
ounces) |
1,043 |
990 |
1,041 |
|
Cost of sales (Barrick's
share)5,8 ($ per ounce) |
1,216 |
1,190 |
1,107 |
|
Total cash costs5,9 ($
per ounce) |
855 |
832 |
729 |
|
All-in
sustaining costs5,9 ($ per ounce) |
1,212 |
1,164 |
1,087 |
|
Copper |
|
|
|
Production5 (millions of
pounds) |
120 |
101 |
96 |
|
Cost of sales (Barrick's
share)5,8 ($ per pound) |
2.11 |
2.21 |
2.43 |
|
C1 cash costs5,10 ($ per
pound) |
1.70 |
1.81 |
1.83 |
|
All-in
sustaining costs5,10 ($ per pound) |
2.87 |
2.85 |
2.74 |
|
Best Assets
- Stronger Q2 performance across the portfolio keeps
Barrick on track to achieve 2022 production
targets
- Goldrush Notice of Availability published in Federal
Register starting the public comment period
- Significant progress made with the Pueblo Viejo
expansion project and additional tailings storage
facility
- Copper portfolio delivers with growing
prospectivity
- Continued focus on brownfields and greenfields
exploration, driven by energized new leadership, delivers
results
Leader in Sustainability
- Launched sustainability-linked credit
facility
- Progress made with newly developed Scope 3 emissions
reduction roadmap
- North Mara received award for the best community health
outreach program in Tanzania
- Public hearings completed for Pueblo Viejo’s
new tailings storage facility
- Year-on-year improvement in water reuse and
recycling
- Seamless leadership succession underpins
Barrick’s management bench strength
Delivering Value
- Operating cash flow of $924 million and free cash
flow1 of $169 million
for the quarter
- Net earnings per share of $0.27 and adjusted net
earnings per share2 of
$0.24 for the quarter
- Remaining surplus cash balance repatriated from
Kibali
- Net cash of $636 million3 supports a $0.20 per
share dividend for Q2 2022
- ~$182 million of shares repurchased under our
$1 billion buy-back program11
Q2 2022 Results PresentationWebinar and
Conference Call
President and CEO Mark Bristow will host a virtual presentation
on the results today at 11:00 EDT, with an interactive webinar
linked to a conference call. Participants will be able to ask
questions.
Go to the webinar |
US and Canada (toll-free), 1 800 319 4610 |
UK (toll-free), 0808 101 2791 |
International (toll), +1 416 915 3239 |
The Q2 2022 presentation materials will be available on
Barrick’s website at www.barrick.com and the webinar will remain on
the website for later viewing.
QUARTERLY DIVIDEND OF $0.20 PER SHARE
MAINTAINED
Barrick today announced the declaration of a dividend of
$0.20 per share in respect of performance for the second quarter of
2022.
The dividend, which is unchanged from Q1, is consistent with the
Company’s Performance Dividend Policy announced at the start of the
year.
The Q2 2022 dividend will be paid on September 15, 2022 to
shareholders of record at the close of business on August 31,
2022.13
“On the back of our strong operating performance, we are once
again able to provide a leading dividend yield to our shareholders,
whilst still maintaining a strong balance sheet,” says senior
executive vice-president and chief financial officer Graham
Shuttleworth. “We believe this continues to show the benefit of the
dividend policy that we announced in February 2022, including the
guidance it provides to our shareholders on future dividend
streams.”
NGM BUILDING NEW GROWTH OPPORTUNITIES
Three years after establishing the joint venture that
created the world’s largest gold mining complex, Nevada Gold Mines
(“NGM”) is stepping out on its next phase by identifying new
opportunities for discoveries and additions.
In one of the largest and most complex mergers in the history of
the industry, assets, operations, systems, people and cultures were
combined successfully to build a business that will unlock the full
potential of the region and create value for all stakeholders,
deliver real jobs and be a key partner to Nevada. Its workforce of
more than 7,000 already makes it one of the state’s largest
employers.
In its short life, NGM has produced 10 million ounces of gold15
and generated significant free cash. Greatly improved knowledge of
the orebodies support robust 10-year plans and increased the
pre-merger life of mine substantially. At the existing operations,
brownfields exploration is replacing reserves depleted by mining
and identifying new targets while the greenfields team is hunting
further afield for a new Tier One14 discovery in North America to
further augment the existing NGM portfolio.
NGM’s journey to its next growth phase is being guided by a
strengthened management team, led by Christine Keener, who joined
Barrick earlier this year as chief operating officer of its North
America region. Peter Richardson has been appointed incoming
executive managing director of NGM, replacing Greg Walker who
retires at the end of the year.
A new North America organizational structure, incorporating NGM,
has been designed to integrate and strengthen mineral resource
management, operational and project leadership to drive continued
performance improvements and support regional growth.
NGM continues to invest in people, both current and future
employees, through education partnerships and training programs. It
supports the College of Southern Nevada and the Clark County School
District, where high school students can get certificates in
industrial maintenance or diesel technology, and has renewed its
partnership with Discovery Education® for the Nevada Department of
Education’s outreach program. It is also working with the
University of Nevada and the Great Basin College in Elko to develop
mining-centered programs. Internally, NGM has established training
mines and facilities for underground and surface mining, and
process operations.
During the first half of the year, NGM posted and improved
operational performance at all of its sites apart from Cortez,
which is transitioning from Pipeline to Cortez Pits and the next
phase of Crossroads. Going forward, the Goldrush project will drive
further improvements at Cortez.
BARRICK EXTENDS GLOBAL EXPLORATION REACH
Barrick continues to expand its global exploration
footprint as a renewed and re-energized team hunts down
opportunities across an expanding global footprint.
In North America, the search has expanded from Nevada to active
projects in Canada. The intensified exploration drive in Latin
America led to an entry into the Guiana Shield, and in Africa &
the Middle East, new projects have been initiated in Zambia,
Tanzania and Egypt. A new Asia Pacific team is making progress
towards the reconstitution and restart of Reko Diq in Pakistan, as
well as Japan, while also looking for other fresh
opportunities.
President and chief executive Mark Bristow said in pursuit of
Barrick’s global growth strategy, significant changes have been
made in the senior management of the exploration team, led by Joel
Holliday.
Three of the four regional exploration teams – Latin America,
Africa & Middle East and Asia Pacific – are now being managed
by new vice-presidents, two of whom were internal appointments. In
Canada, the recently created positions of exploration manager and
new opportunities manager were filled and a dedicated growth
manager for the Latin America and Asia Pacific regions has been
appointed.
“Our geological teams now have strength in depth and we’re
building a pipeline of high-potential managers and technical
specialists. The highly experienced new appointees are already
driving significant change and this renewed energy and focus is
already delivering robust results,” Bristow said.
The exploration strategy is designed to:
- deliver short to medium term
projects that will support improvements in mine plans;
- make new discoveries for Barrick’s
Tier One gold and copper portfolio;
- optimize the value of major
undeveloped projects; and
- identify and secure emerging opportunities early in their value
curve.
PUEBLO VIEJO EXPANSION PROJECT CONTINUES TO
ADVANCE
Pueblo Viejo’s conversion into a long-life mine is
progressing after discussions with the Dominican Republic’s
government identified a site for the new tailings storage facility
and the terms of reference for the environmental and social impact
assessment were published.
The mine was heading for closure because its vast resources
could not be converted to reserves due to limitations on its
current tailings storage facility. The massive integrated expansion
has the potential to extend the mine's life to 2040 and beyond with
an estimated minimum average annual production of 800,000
ounces.12
This means that Pueblo Viejo, long the country’s largest
corporate taxpayer, will be able to continue delivering value to
its Dominican stakeholders for generations to come. In line with
Barrick’s partnership philosophy, it is engaging with the local
communities and authorities to keep them informed about the
project.
In spite of a contractor workforce of 3,500 being added to the
mine’s 2,700 permanent employees, Pueblo Viejo is maintaining an
exemplary safety record. At the end of this year’s second quarter,
the project had been injury free for 5 million hours or 10
months.
BARRICK BUILDS ON TRANSFORMED TANZANIAN
ASSETS
Barrick has been recognized as the largest contributor
to Tanzanian government revenue in 2021, confirming its position as
a key partner in the socio-economic development of the
country.
Since the company took control of North Mara and Bulyanhulu in
September 2019, its total in-country investment has totaled $1.995
billion.15 In the first half of this year, it has paid $158 million
in taxes, royalties and levies, $42 million in distributions to the
Government of Tanzania in the form of dividends and shareholder
loans as well as $210 million to local suppliers. It has also now
paid $140 million of its $300 million settlement with the
government.
Barrick has committed $6 for every ounce of gold sold by the two
mines to improving healthcare, education, infrastructure and access
to potable water in their communities. A further $70 million has
been allocated to investment in value-adding national projects,
including mining related training and scientific facilities at
Tanzanian universities.
“When we took over these mines they were a moribund burden on
the government and their investors. In a very short time, we
redesigned and re-engineered them, creating what are in effect two
new mines. They are well placed to deliver their annual production
guidance and have the potential to achieve a combined Tier One
status in Barrick’s portfolio, meaning that they are capable of
producing at least 500,000 ounces of gold annually for more than 10
years at the lower end of the cost spectrum as a combined complex,”
president and chief executive Mark Bristow says.
“We are continuing to replace resources depleted by mining and
we are targeting new opportunities as well, increasing our
footprint around Bulyanhulu through the acquisition of six highly
prospective licences. We’re also updating the geological models in
the North Mara region and identifying potential targets elsewhere
in Tanzania.”
Bulyanhulu now has a life of more than 20 years and continues to
deliver a significant growth in reserves over and above depletion.
Development of its new Deep West extension is scheduled to start
this quarter. North Mara’s open pit has been successfully ramped up
and the new Gena pushback is planned for the second half of the
year. An investment of $65 million in water treatment and
management has reduced the volume in North Mara’s tailings dam from
7 million m3 to less than 800,000 m3, returning it to its designed
and legislated capacity.
In July, Bristow met with the elected Chairmen of the 11
villages around North Mara, as well as elders, officials, the
District Commissioner and the local Member of Parliament, following
a similar meeting in March. The Chairmen made constructive
suggestions on solidifying the relationship and reaffirmed their
satisfaction with Barrick’s sustainability and partnership policies
and practices.
During the past quarter, Bulyanhulu was named the overall winner
of the Tanzanian OSHA (Occupational Safety and Health Authority)
award for 2022 while North Mara received the award for the best
community health outreach program. An investment in a landmark
potable water project, scheduled for completion in October, will
benefit more than 30,000 people in four villages around North
Mara.
In line with Barrick’s policy of local employment, Tanzanian
nationals now account for 96% of the two mines’ workforces and 64%
of their senior management are Tanzanians. The mines are also
driving the increased employment of women in a traditionally
male-dominated industry through targeted recruitment and
development programs.
AFTER 25 YEARS OF DELIVERING VALUE TO MALI BARRICK
CONTINUES TO INVEST IN THE FUTURE
Barrick continues to invest in creating value for all
stakeholders and in supporting the communities that host its mines,
through among other things, the commissioning of the Gounkoto
underground mine and the Gara West open pit, the continuing
replacement of reserves, the extension of the solar power plant and
the further strengthening of local partnerships as instances of the
company’s long-term commitment to the country.
“In the first half of the year we’ve contributed $337 million to
the Malian economy in the form of taxes, royalties, dividends,
salaries and payments to local suppliers, taking the lifetime
contribution of Barrick, previously Randgold, to $8.5 billion.
We’re particularly proud of the fact the Gara West pit is being
mined for us by two Malian contractors we have mentored,” says
Barrick president and chief executive Mark Bristow.
At the halfway mark of the year, the complex is on track to meet
its production guidance for 2022, replace annual reserve depletion
to further extend its mine life, and maintain its exemplary safety
record, with no lost time injuries or major environmental events
during the past quarter.
It continues to invest in sustainable economic community
projects, establishing a motel, a farm for Kenieba women and three
water supply systems during the quarter. The Loulo agricultural
college, designed as the foundation of a sustainable regional
agribusiness, has already trained 21 women and 143 men and created
30 farms.
Since the opening of the mine, Loulo-Gounkoto has built 20
schools in its neighboring villages, taking student enrollment from
500 to more than 5,000. Seventy-eight of them are currently
benefiting from the complex’s bursary program and Loulo-Gounkoto is
also supporting teachers’ salaries.
“First as Randgold and now as Barrick, we’ve been operating in
Mali for 25 years and we plan to be here for at least as long
again. The strong and mutually rewarding partnerships we have
forged with the government, local business partners and our host
communities are the key to our success and an example to Africa’s
other mining countries,” Bristow says.
REKO DIQ ALLIANCE BETWEEN PAKISTAN AND BARRICK SET TO
CREATE LONG-TERM VALUE
Pakistan’s finance minister Miftah Ismail and Barrick
president and chief executive Mark Bristow said after their meeting
in Islamabad that they shared a clear vision of the national
strategic importance of the Reko Diq copper-gold project and were
committed to developing it as a world-class mine that would create
value for the country and its people through multiple
generations.
Reko Diq is one of the world’s largest undeveloped copper-gold
deposits. An agreement in principle reached between the government
of Pakistan, the provincial government of Balochistan and Barrick
earlier this year provides for the reconstitution and restart of
the project, which has been on hold since 2011. It will be operated
by Barrick and owned 50% by Barrick, 25% by the Balochistan
Provincial Government and 25% by Pakistani state-owned
enterprises.
The definitive agreements underlying the framework agreement
between Barrick and the governments of Pakistan and Balochistan are
being finalized. Once this has been completed and the necessary
legalization steps have been taken, Barrick will update the
original feasibility study, a process expected to take two years.
Construction of the first phase will follow that, with first
production of copper and gold expected in 2027/2028.
“During the negotiations the federal government and Barrick
confirmed that Balochistan and its people should receive their fair
share of the benefits as part of the Pakistan ownership group,”
Bristow said.
“At Barrick, we know that our long-term success depends on
sharing the benefits we create equitably with our host governments
and communities. At Reko Diq, Balochistan’s shareholding will be
fully funded by the project and the Federal Government, allowing
the province to reap the dividends, royalties and other benefits of
its 25% ownership without having to contribute financially to the
project’s construction or operation. It’s equally important that
Balochistan and its people should see these benefits from day one.
Even before construction starts, when the legalization process has
been completed we will implement a range of social development
programs, supported by an upfront commitment to the improvement of
healthcare, education, food security and the provision of potable
water in a region where the groundwater has a high saline
content.”
Finance minister Ismail said the development of Reko Diq
represented the largest direct foreign investment in Balochistan
and one of the largest in Pakistan.
“Like Barrick, we believe that the future of mining lies in
mutually beneficial partnerships between host countries and
world-class mining companies. The Reko Diq agreement exemplifies
this philosophy and also signals to the international community
that Pakistan is open for business,” he said.
Subject to the updated feasibility study, Reko Diq is envisaged
as a conventional open pit and milling operation, producing a
high-quality copper-gold concentrate. It will be constructed in two
phases, starting with a plant that will be able to process
approximately 40 million tonnes of ore per annum which could be
doubled in five years following first production from phase one.
With its unique combination of large scale, low strip and good
grade, Reko Diq will be a multi-generational mine with a life of at
least 40 years. During peak construction the project is expected to
employ 7,500 people and once in production it will create 4,000
long-term jobs. Barrick’s policy of prioritizing local employment
and suppliers will have a positive impact on the downstream
economy.
KIBALI DRIVES SUSTAINABLE VALUE CREATION
The Kibali gold mine’s investment in the Democratic
Republic of Congo now exceeds $4 billion and it has created a
thriving regional economy in a remote part of the country through
partnering with and mentoring local entrepreneurs, uplifting host
communities and upgrading essential infrastructure.
Kibali is not only Africa’s largest gold mine, it is also a
global leader in automation, sustainability initiatives, clean
energy and skills training.
“Thanks to Barrick’s policy of local employment and advancement,
94% of Kibali’s workforce, including its management, are Congolese
nationals. It is now also driving the employment of women in the
traditionally male-dominated mining industry through targeted
recruitment campaigns and development programs designed to equip
them for rewarding careers at all levels of the organization,” says
Barrick president and chief executive Mark Bristow.
Kibali is on track to meet its full-year production guidance and
has again posted an injury-free quarter. Its three world-class
hydropower stations are mitigating the impact of higher fuel prices
and significantly reducing the mine’s carbon footprint. Bristow
said the stations were built well before climate change became a
priority issue, demonstrating Barrick’s long-standing commitment to
sustainability in all its activities.
Kibali’s gold reserves have grown net of depletion for three
successive years, and ongoing conversion drilling is expected to
continue this trend, despite producing in excess of 5.7Moz of gold
to date.15 Ongoing exploration is delivering new growth
opportunities with the potential to grow the mineral resource base
beyond the original feasibility study.
Local sustainability projects include the construction of a
world-class aquaponics farm and the erection of a vocational and
technical training center to promote capacity building in the
community. Implementation of the cahier des charges mechanism has
started, following its approval by the government. This will add to
the current commitment of investing 0.3% of revenue in community
projects identified in consultation with the mine’s community
development committees.
Kibali also continues to invest in the future of Africa’s
biodiversity through its support for the Garamba National Park
which has seen a substantial increase in the giraffe population and
the near-elimination of elephant poaching. It is also sponsoring a
project for the re-introduction of white rhino into the park,
critical in the long-term campaign to protect this endangered
species.
“Kibali’s journey has created enormous value for all its
stakeholders and it’s a standout example of what mutually
beneficial partnerships can achieve. Its great gold endowment means
that it has a long future ahead as an engine for economic growth
and community development,” Bristow says.
BARRICK EXTENDS REVOLVING CREDIT FACILITY AND
ESTABLISHES SUSTAINABILITY-LINKED METRICS
Barrick has completed an amendment and restatement of
the company’s undrawn $3.0 billion revolving credit facility,
including an extension of the termination date by one year to May
2027, replacement of LIBOR with SOFR as the floating rate mechanism
related to the interest rate for any US dollar funds drawn down,
and the establishment of sustainability-linked
metrics.
The sustainability-linked metrics incorporated into the
revolving credit facility are made up of annual environmental and
social performance targets directly influenced by Barrick’s
actions, rather than based on external ratings. The performance
targets include Scope 1 and Scope 2 greenhouse gas emissions
intensity, water use efficiency (reuse and recycling rates), and
Total Recordable Injury Frequency Rate (TRIFR).16 Barrick may incur
positive or negative pricing adjustments on drawn credit spreads
and standby fees based on its sustainability performance versus the
targets that have been set.
Senior executive vice-president and chief financial officer
Graham Shuttleworth said, “The extension of the termination date of
our undrawn credit facility, combined with our strong balance
sheet, highlights the current strength of Barrick’s liquidity,
while the establishment of sustainability-linked metrics, along
with Barrick’s recently released 2021 Sustainability Report,
continues to show Barrick’s commitment to ESG.”
Barrick’s long-term credit is currently rated BBB+ and Baa1 by
S&P Global Ratings and Moody’s Investors Service,
respectively.
Appendix 12022
Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS |
|
2022 forecastattributable production(000s oz) |
2022 forecast costof sales8 ($/oz) |
2022 forecast totalcash costs9 ($/oz) |
2022 forecast all-insustaining costs9($/oz) |
Carlin (61.5%)17 |
950 - 1,030 |
900 - 980 |
730 - 790 |
1,020 - 1,100 |
Cortez (61.5%)18 |
480 - 530 |
970 - 1,050 |
650 - 710 |
1,010 - 1,090 |
Turquoise Ridge (61.5%) |
330 - 370 |
1,110 - 1,190 |
770 - 830 |
930 - 1,010 |
Phoenix (61.5%) |
90 - 120 |
2,000 - 2,080 |
720 - 780 |
890 - 970 |
Long Canyon (61.5%) |
40 - 50 |
1,420 - 1,500 |
540 - 600 |
540 - 620 |
Nevada Gold Mines (61.5%) |
1,900 - 2,100 |
1,020 - 1,100 |
710 - 770 |
990 - 1,070 |
Hemlo |
160 - 180 |
1,340 - 1,420 |
1,140 - 1,200 |
1,510 - 1,590 |
North America |
2,100 - 2,300 |
1,050 - 1,130 |
740 - 800 |
1,040 - 1,120 |
|
|
|
|
|
Pueblo Viejo (60%) |
400 - 440 |
1,070 - 1,150 |
670 - 730 |
910 - 990 |
Veladero (50%) |
220 - 240 |
1,210 - 1,290 |
740 - 800 |
1,270 - 1,350 |
Porgera (47.5%)19 |
— |
— |
— |
— |
Latin America & Asia Pacific |
620 - 680 |
1,140 - 1,220 |
700 - 760 |
1,040 - 1,120 |
|
|
|
|
|
Loulo-Gounkoto (80%) |
510 - 560 |
1,070 - 1,150 |
680 - 740 |
940 - 1,020 |
Kibali (45%) |
340 - 380 |
990 - 1,070 |
600 - 660 |
800 - 880 |
North Mara (84%) |
230 - 260 |
820 - 900 |
670 - 730 |
930 - 1,010 |
Tongon (89.7%) |
170 - 200 |
1,700 - 1,780 |
1,220 - 1,280 |
1,400 - 1,480 |
Bulyanhulu (84%) |
180 - 210 |
950 - 1,030 |
630 - 690 |
850 - 930 |
Africa & Middle East |
1,450 - 1,600 |
1,070 - 1,150 |
720 - 780 |
950 - 1,030 |
|
|
|
|
|
Total Attributable to
Barrick20,21,22 |
4,200 - 4,600 |
1,070 - 1,150 |
730 - 790 |
1,040 - 1,120 |
|
|
|
|
|
COPPER PRODUCTION AND COSTS |
|
2022 forecastattributable production(Mlbs) |
2022 forecast costof sales8 ($/lb) |
2022 forecast C1cash costs10 ($/lb) |
2022 forecast all-insustaining costs10($/lb) |
Lumwana |
250 - 280 |
2.20 - 2.50 |
1.60 - 1.80 |
3.10 - 3.40 |
Zaldívar (50%) |
100 - 120 |
2.70 - 3.00 |
2.00 - 2.20 |
2.50 - 2.80 |
Jabal Sayid (50%) |
70 - 80 |
1.40 - 1.70 |
1.30 - 1.50 |
1.30 - 1.60 |
Total Attributable to
Barrick21 |
420 - 470 |
2.20 - 2.50 |
1.70 - 1.90 |
2.70 - 3.00 |
|
|
|
|
|
ATTRIBUTABLE CAPITAL EXPENDITURES |
|
|
|
|
($ millions) |
|
|
|
Attributable minesite sustaining6 |
1,350 - 1,550 |
|
|
|
Attributable project6 |
550 - 650 |
|
|
|
Total attributable capital expenditures7 |
1,900 - 2,200 |
|
|
|
2022 OUTLOOK ASSUMPTIONS AND ECONOMIC
SENSITIVITY ANALYSIS
|
2022 GuidanceAssumption |
Hypothetical Change |
Impact on EBITDA23 (millions) |
Impact on TCC andAISC9,10 |
Gold price sensitivity |
$1,700/oz |
+/- $100/oz |
+/- $580 |
+/- $5/oz |
Copper
price sensitivity |
$4.00/lb |
+/- $0.25/lb |
+/- $60 |
+/- $0.01/lb |
Appendix 2Production
and Cost Summary - Gold
|
For the three months ended |
|
6/30/22 |
3/31/22 |
% Change |
6/30/21 |
% Change |
Nevada Gold Mines LLC
(61.5%)a |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
462 |
459 |
1% |
452 |
2% |
Gold produced (000s oz 100% basis) |
751 |
747 |
1% |
735 |
2% |
Cost of sales ($/oz) |
1,171 |
1,169 |
0% |
1,111 |
5% |
Total cash costs ($/oz)b |
856 |
820 |
4% |
717 |
19% |
All-in sustaining costs ($/oz)b |
1,238 |
1,118 |
11% |
1,014 |
22% |
Carlin (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
243 |
229 |
6% |
190 |
28% |
Gold produced (000s oz 100% basis) |
394 |
373 |
6% |
309 |
28% |
Cost of sales ($/oz) |
1,042 |
1,015 |
3% |
1,043 |
0% |
Total cash costs ($/oz)b |
862 |
829 |
4% |
852 |
1% |
All-in sustaining costs ($/oz)b |
1,192 |
1,139 |
5% |
1,310 |
(9)% |
Cortez (61.5%)d |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
97 |
115 |
(16)% |
110 |
(12)% |
Gold produced (000s oz 100% basis) |
158 |
187 |
(16)% |
178 |
(12)% |
Cost of sales ($/oz) |
1,168 |
1,113 |
5% |
1,167 |
0% |
Total cash costs ($/oz)b |
850 |
784 |
8% |
793 |
7% |
All-in sustaining costs ($/oz)b |
1,538 |
1,150 |
34% |
1,029 |
49% |
Turquoise Ridge (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
75 |
67 |
12% |
78 |
(4)% |
Gold produced (000s oz 100% basis) |
122 |
109 |
12% |
128 |
(4)% |
Cost of sales ($/oz) |
1,289 |
1,436 |
(10)% |
1,131 |
14% |
Total cash costs ($/oz)b |
928 |
1,030 |
(10)% |
752 |
23% |
All-in sustaining costs ($/oz)b |
1,195 |
1,281 |
(7)% |
904 |
32% |
Phoenix (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
26 |
23 |
13% |
28 |
(7)% |
Gold produced (000s oz 100% basis) |
43 |
37 |
13 % |
45 |
(7)% |
Cost of sales ($/oz) |
2,114 |
2,253 |
(6)% |
1,864 |
13% |
Total cash costs ($/oz)b |
895 |
835 |
7% |
279 |
221% |
All-in sustaining costs ($/oz)b |
1,152 |
1,027 |
12% |
401 |
187% |
Long Canyon (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
21 |
25 |
(16)% |
46 |
(54)% |
Gold produced (000s oz 100% basis) |
34 |
41 |
(16)% |
75 |
(54)% |
Cost of sales ($/oz) |
1,280 |
1,093 |
17% |
691 |
85% |
Total cash costs ($/oz)b |
450 |
342 |
32% |
168 |
168% |
All-in sustaining costs ($/oz)b |
459 |
366 |
25% |
191 |
140% |
Pueblo Viejo (60%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
105 |
104 |
1% |
117 |
(10)% |
Gold produced (000s oz 100% basis) |
175 |
174 |
1% |
195 |
(10)% |
Cost of sales ($/oz) |
1,154 |
1,077 |
7% |
904 |
28% |
Total cash costs ($/oz)b |
724 |
682 |
6% |
533 |
36% |
All-in sustaining costs ($/oz)b |
1,024 |
948 |
8% |
723 |
42% |
Loulo-Gounkoto (80%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
140 |
138 |
1% |
143 |
(2)% |
Gold produced (000s oz 100% basis) |
175 |
172 |
1% |
179 |
(2)% |
Cost of sales ($/oz) |
1,093 |
1,088 |
0% |
993 |
10% |
Total cash costs ($/oz)b |
730 |
721 |
1% |
610 |
20% |
All-in sustaining costs ($/oz)b |
1,013 |
982 |
3% |
1,073 |
(6)% |
Kibali (45%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
81 |
76 |
7% |
91 |
(11)% |
Gold produced (000s oz 100% basis) |
180 |
168 |
7% |
202 |
(11)% |
Cost of sales ($/oz) |
1,164 |
1,137 |
2% |
1,038 |
12% |
Total cash costs ($/oz)b |
738 |
744 |
(1)% |
645 |
14% |
All-in sustaining costs ($/oz)b |
946 |
996 |
(5)% |
894 |
6% |
Veladero (50%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
58 |
46 |
26% |
31 |
87% |
Gold produced (000s oz 100% basis) |
116 |
92 |
26% |
62 |
87% |
Cost of sales ($/oz) |
1,369 |
1,348 |
2% |
1,231 |
11% |
Total cash costs ($/oz)b |
861 |
847 |
2% |
774 |
11% |
All-in sustaining costs ($/oz)b |
1,461 |
1,588 |
(8)% |
1,698 |
(14)% |
Porgera (47.5%)e |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
— |
— |
—% |
— |
—% |
Gold produced (000s oz 100% basis) |
— |
— |
—% |
— |
—% |
Cost of sales ($/oz) |
— |
— |
—% |
— |
—% |
Total cash costs ($/oz)b |
— |
— |
—% |
— |
—% |
All-in sustaining costs ($/oz)b |
— |
— |
—% |
— |
—% |
Tongon (89.7%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
41 |
35 |
17% |
48 |
(15)% |
Gold produced (000s oz 100% basis) |
46 |
39 |
17% |
53 |
(15)% |
Cost of sales ($/oz) |
2,025 |
2,036 |
(1)% |
1,446 |
40% |
Total cash costs ($/oz)b |
1,558 |
1,667 |
(7)% |
1,045 |
49% |
All-in sustaining costs ($/oz)b |
1,655 |
1,803 |
(8)% |
1,162 |
42% |
Hemlo |
|
|
|
|
|
Gold produced (000s oz) |
36 |
31 |
16% |
42 |
(14)% |
Cost of sales ($/oz) |
1,698 |
1,727 |
(2)% |
1,603 |
6% |
Total cash costs ($/oz)b |
1,489 |
1,503 |
(1)% |
1,314 |
13% |
All-in sustaining costs ($/oz)b |
1,804 |
1,982 |
(9)% |
1,937 |
(7)% |
North Mara (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
66 |
56 |
18% |
63 |
5% |
Gold produced (000s oz 100% basis) |
79 |
66 |
18% |
75 |
5% |
Cost of sales ($/oz) |
1,060 |
852 |
24% |
975 |
9% |
Total cash costs ($/oz)b |
756 |
709 |
7% |
816 |
(7)% |
All-in sustaining costs ($/oz)b |
957 |
874 |
9% |
952 |
1% |
Buzwagi (84%)f |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
|
|
|
19 |
|
Gold produced (000s oz 100% basis) |
|
|
|
22 |
|
Cost of sales ($/oz) |
|
|
|
1,315 |
|
Total cash costs ($/oz)b |
|
|
|
1,244 |
|
All-in sustaining costs ($/oz)b |
|
|
|
1,242 |
|
Bulyanhulu (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
54 |
45 |
20% |
35 |
54% |
Gold produced (000s oz 100% basis) |
65 |
53 |
20% |
42 |
54% |
Cost of sales ($/oz) |
1,163 |
1,216 |
(4)% |
1,164 |
0% |
Total cash costs ($/oz)b |
836 |
847 |
(1)% |
776 |
8% |
All-in sustaining costs ($/oz)b |
1,094 |
984 |
11% |
916 |
19% |
Total
Attributable to Barrickg |
|
|
|
|
|
Gold produced (000s oz) |
1,043 |
990 |
5% |
1,041 |
0% |
Cost of sales ($/oz)h |
1,216 |
1,190 |
2% |
1,107 |
10% |
Total cash costs ($/oz)b |
855 |
832 |
3% |
729 |
17% |
All-in sustaining costs ($/oz)b |
1,212 |
1,164 |
4% |
1,087 |
11% |
- These results
represent our 61.5% interest in Carlin (including NGM's 60%
interest in South Arturo up until May 30, 2021 and 100% interest
thereafter, reflecting the terms of the Exchange Agreement with
i-80 Gold to acquire the 40% interest in South Arturo that NGM did
not already own in exchange for the Lone Tree and Buffalo Mountain
properties and infrastructure, which closed on October 14, 2021),
Cortez, Turquoise Ridge, Phoenix and Long Canyon.
- Further
information on these non-GAAP financial performance measures,
including detailed reconciliations, is included in the endnotes to
this press release.
- On September 7,
2021, NGM announced it had entered into an Exchange Agreement with
i-80 Gold to acquire the 40% interest in South Arturo that NGM did
not already own in exchange for the Lone Tree and Buffalo Mountain
properties and infrastructure. Operating results within our 61.5%
interest in Carlin includes NGM's 60% interest in South Arturo up
until May 30, 2021, and 100% interest thereafter, and operating
results within our 61.5% interest in Phoenix includes Lone Tree up
until May 31, 2021, reflecting the terms of the Exchange Agreement
which closed on October 14, 2021.
- Includes
Goldrush.
- As Porgera was placed on care and
maintenance on April 25, 2020, no operating data or per ounce data
is provided.
- With the end of mining at Buzwagi in
the third quarter of 2021, we have ceased to include production or
non-GAAP cost metrics for Buzwagi from October 1, 2021
onwards.
- Excludes
Pierina, Lagunas Norte up until its divestiture in June 2021, and
Buzwagi starting in the fourth quarter of 2021. Some of 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 closure or care and
maintenance) divided by ounces sold (both on an attributable basis
using Barrick's ownership share).
Production and Cost Summary -
Copper
|
For the three months ended |
|
6/30/22 |
3/31/22 |
% Change |
6/30/21 |
% Change |
Lumwana |
|
|
|
|
|
Copper production (Mlbs) |
75 |
57 |
32% |
56 |
34% |
Cost of sales ($/lb) |
2.01 |
2.20 |
(9)% |
2.36 |
(15)% |
C1 cash costs ($/lb)a |
1.68 |
1.86 |
(10)% |
1.72 |
(2)% |
All-in sustaining costs ($/lb)a |
3.28 |
3.16 |
4% |
2.92 |
12% |
Zaldívar
(50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
25 |
25 |
0% |
22 |
14% |
Copper production (Mlbs 100% basis) |
50 |
51 |
0% |
44 |
14% |
Cost of sales ($/lb) |
2.88 |
2.85 |
1% |
3.56 |
(19)% |
C1 cash costs ($/lb)a |
2.17 |
2.15 |
1% |
2.68 |
(19)% |
All-in sustaining costs ($/lb)a |
2.65 |
2.64 |
0% |
3.15 |
(16)% |
Jabal Sayid (50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
20 |
19 |
5% |
18 |
11% |
Copper production (Mlbs 100% basis) |
40 |
38 |
5% |
36 |
11% |
Cost of sales ($/lb) |
1.45 |
1.30 |
12% |
1.47 |
(1)% |
C1 cash costs ($/lb)a |
1.09 |
1.10 |
(1)% |
1.27 |
(14)% |
All-in sustaining costs ($/lb)a |
1.19 |
1.17 |
2% |
1.39 |
(14)% |
Total Attributable to Barrick |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
120 |
101 |
19% |
96 |
25% |
Cost of sales ($/lb)b |
2.11 |
2.21 |
(5)% |
2.43 |
(13)% |
C1 cash costs ($/lb)a |
1.70 |
1.81 |
(6)% |
1.83 |
(7)% |
All-in sustaining costs ($/lb)a |
2.87 |
2.85 |
1% |
2.74 |
5% |
- Further
information on these non-GAAP financial performance measures,
including detailed reconciliations, is included in the endnotes to
this press release.
- Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share).
Appendix 3Financial and Operating
Highlights
|
For the three months ended |
|
For the six months ended |
|
6/30/22 |
3/31/22 |
% Change |
|
6/30/21 |
% Change |
|
6/30/22 |
6/30/21 |
% Change |
Financial Results ($ millions) |
|
|
|
|
|
|
|
|
|
|
Revenues |
2,859 |
|
2,853 |
|
0 |
% |
|
2,893 |
|
(1)% |
|
5,712 |
|
5,849 |
|
(2)% |
Cost of sales |
1,850 |
|
1,739 |
|
6 |
% |
|
1,704 |
|
9 |
% |
|
3,589 |
|
3,416 |
|
5 |
% |
Net earningsa |
488 |
|
438 |
|
11 |
% |
|
411 |
|
19 |
% |
|
926 |
|
949 |
|
(2)% |
Adjusted net earningsb |
419 |
|
463 |
|
(10)% |
|
513 |
|
(18)% |
|
882 |
|
1,020 |
|
(14)% |
Adjusted EBITDAb |
1,527 |
|
1,645 |
|
(7)% |
|
1,719 |
|
(11)% |
|
3,172 |
|
3,519 |
|
(10)% |
Adjusted EBITDA marginc |
53 |
% |
58 |
% |
(9)% |
|
59 |
% |
(10)% |
|
56 |
% |
60 |
% |
(7)% |
Minesite sustaining capital
expendituresb,d |
523 |
|
420 |
|
25 |
% |
|
452 |
|
16 |
% |
|
943 |
|
857 |
|
10 |
% |
Project capital
expendituresb,d |
226 |
|
186 |
|
22 |
% |
|
203 |
|
11 |
% |
|
412 |
|
334 |
|
23 |
% |
Total consolidated capital
expendituresd,e |
755 |
|
611 |
|
24 |
% |
|
658 |
|
15 |
% |
|
1,366 |
|
1,197 |
|
14 |
% |
Net cash provided by operating
activities |
924 |
|
1,004 |
|
(8)% |
|
639 |
|
45 |
% |
|
1,928 |
|
1,941 |
|
(1)% |
Net cash provided by operating
activities marginf |
32 |
% |
35 |
% |
(9)% |
|
22 |
% |
45 |
% |
|
34 |
% |
33 |
% |
3 |
% |
Free cash flowb |
169 |
|
393 |
|
(57)% |
|
(19 |
) |
989 |
% |
|
562 |
|
744 |
|
(24)% |
Net earnings per share (basic and
diluted) |
0.27 |
|
0.25 |
|
8 |
% |
|
0.23 |
|
17 |
% |
|
0.52 |
|
0.53 |
|
(2)% |
Adjusted net earnings (basic)b
per share |
0.24 |
|
0.26 |
|
(8)% |
|
0.29 |
|
(17)% |
|
0.50 |
|
0.57 |
|
(12)% |
Weighted average diluted common shares (millions of shares) |
1,777 |
|
1,779 |
|
0 |
% |
|
1,779 |
|
0 |
% |
|
1,778 |
|
1,779 |
|
0 |
% |
Operating Results |
|
|
|
|
|
|
|
|
|
|
Gold production (thousands of
ounces)g |
1,043 |
|
990 |
|
5 |
% |
|
1,041 |
|
0 |
% |
|
2,033 |
|
2,142 |
|
(5)% |
Gold sold (thousands of
ounces)g |
1,040 |
|
993 |
|
5 |
% |
|
1,070 |
|
(3)% |
|
2,033 |
|
2,163 |
|
(6)% |
Market gold price ($/oz) |
1,871 |
|
1,877 |
|
0 |
% |
|
1,816 |
|
3 |
% |
|
1,874 |
|
1,805 |
|
4 |
% |
Realized gold priceb,g
($/oz) |
1,861 |
|
1,876 |
|
(1)% |
|
1,820 |
|
2 |
% |
|
1,868 |
|
1,798 |
|
4 |
% |
Gold cost of sales (Barrick’s
share)g,h ($/oz) |
1,216 |
|
1,190 |
|
2 |
% |
|
1,107 |
|
10 |
% |
|
1,203 |
|
1,090 |
|
10 |
% |
Gold total cash costsb,g
($/oz) |
855 |
|
832 |
|
3 |
% |
|
729 |
|
17 |
% |
|
844 |
|
723 |
|
17 |
% |
Gold all-in sustaining costsb,g
($/oz) |
1,212 |
|
1,164 |
|
4 |
% |
|
1,087 |
|
11 |
% |
|
1,188 |
|
1,052 |
|
13 |
% |
Copper production (millions of
pounds)g |
120 |
|
101 |
|
19 |
% |
|
96 |
|
25 |
% |
|
221 |
|
189 |
|
17 |
% |
Copper sold (millions of
pounds)g |
113 |
|
113 |
|
0 |
% |
|
96 |
|
18 |
% |
|
226 |
|
209 |
|
8 |
% |
Market copper price ($/lb) |
4.32 |
|
4.53 |
|
(5)% |
|
4.40 |
|
(2)% |
|
4.43 |
|
4.12 |
|
8 |
% |
Realized copper priceb,g
($/lb) |
3.72 |
|
4.68 |
|
(21)% |
|
4.57 |
|
(19)% |
|
4.20 |
|
4.32 |
|
(3)% |
Copper cost of sales (Barrick’s
share)g,i ($/lb) |
2.11 |
|
2.21 |
|
(5)% |
|
2.43 |
|
(13)% |
|
2.16 |
|
2.26 |
|
(4)% |
Copper C1 cash costsb,g
($/lb) |
1.70 |
|
1.81 |
|
(6)% |
|
1.83 |
|
(7)% |
|
1.75 |
|
1.71 |
|
2 |
% |
Copper all-in sustaining costsb,g
($/lb) |
2.87 |
|
2.85 |
|
1 |
% |
|
2.74 |
|
5 |
% |
|
2.86 |
|
2.48 |
|
15 |
% |
|
As at 6/30/22 |
As at 3/31/22 |
% Change |
|
As at 6/30/21 |
% Change |
|
|
|
|
Financial Position ($ millions) |
|
|
|
|
|
|
|
|
|
|
Debt (current and long-term) |
5,144 |
|
5,144 |
|
0 |
% |
|
5,152 |
|
0 |
% |
|
|
|
|
Cash and equivalents |
5,780 |
|
5,887 |
|
(2)% |
|
5,138 |
|
12 |
% |
|
|
|
|
Debt, net of cash |
(636 |
) |
(743 |
) |
(14)% |
|
14 |
|
(4,643)% |
|
|
|
|
- Net earnings represents net earnings attributable to the equity
holders of the Company.
- Further information on these non-GAAP financial performance
measures, including detailed reconciliations, is included in the
endnotes to this press release.
- Represents adjusted EBITDA divided by revenue.
- Amounts presented on a consolidated
cash basis. Project capital expenditures are included in our
calculation of all-in costs, but not included in our calculation of
all-in sustaining costs.
- Total consolidated capital
expenditures also includes capitalized interest of $6 million and
$11 million, respectively, for the three and six month periods
ended June 30, 2022 (March 31, 2022: $5 million and
June 30, 2021: $3 million and $6 million,
respectively).
- Represents net cash provided by
operating activities divided by revenue.
- On an attributable basis.
- Gold cost of sales per ounce is
calculated as cost of sales across our gold operations (excluding
sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using Barrick's ownership
share).
- Copper cost of sales per pound is
calculated as cost of sales across our copper operations divided by
pounds sold (both on an attributable basis using Barrick's
ownership share).
Consolidated Statements of Income
Barrick
Gold Corporation(in millions of United States dollars, except per
share data) (Unaudited) |
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue (notes 5 and 6) |
$ |
2,859 |
|
|
$ |
2,893 |
|
|
$ |
5,712 |
|
|
$ |
5,849 |
|
Costs and expenses (income) |
|
|
|
|
Cost of sales (notes 5 and
7) |
|
1,850 |
|
|
|
1,704 |
|
|
|
3,589 |
|
|
|
3,416 |
|
General and administrative
expenses |
|
30 |
|
|
|
47 |
|
|
|
84 |
|
|
|
85 |
|
Exploration, evaluation and
project expenses |
|
100 |
|
|
|
77 |
|
|
|
167 |
|
|
|
138 |
|
Impairment (reversals) charges
(notes 9b and 13) |
|
3 |
|
|
|
2 |
|
|
|
5 |
|
|
|
(87 |
) |
Loss on currency translation |
|
6 |
|
|
|
7 |
|
|
|
9 |
|
|
|
11 |
|
Closed mine rehabilitation |
|
(128 |
) |
|
|
6 |
|
|
|
(125 |
) |
|
|
29 |
|
Income from equity investees
(note 12) |
|
(89 |
) |
|
|
(104 |
) |
|
|
(188 |
) |
|
|
(207 |
) |
Other expense (income) (note 9a) |
|
2 |
|
|
|
26 |
|
|
|
(9 |
) |
|
|
45 |
|
Income before finance costs and income taxes |
$ |
1,085 |
|
|
$ |
1,128 |
|
|
$ |
2,180 |
|
|
$ |
2,419 |
|
Finance costs, net |
|
(89 |
) |
|
|
(91 |
) |
|
|
(177 |
) |
|
|
(178 |
) |
Income before income taxes |
$ |
996 |
|
|
$ |
1,037 |
|
|
$ |
2,003 |
|
|
$ |
2,241 |
|
Income tax expense (note 10) |
|
(279 |
) |
|
|
(343 |
) |
|
|
(580 |
) |
|
|
(717 |
) |
Net income |
$ |
717 |
|
|
$ |
694 |
|
|
$ |
1,423 |
|
|
$ |
1,524 |
|
Attributable to: |
|
|
|
|
Equity holders of Barrick Gold
Corporation |
$ |
488 |
|
|
$ |
411 |
|
|
$ |
926 |
|
|
$ |
949 |
|
Non-controlling interests (note 16) |
$ |
229 |
|
|
$ |
283 |
|
|
$ |
497 |
|
|
$ |
575 |
|
|
|
|
|
|
Earnings per share
data attributable to the equity holders of Barrick Gold Corporation
(note 8) |
|
|
|
|
Net income |
|
|
|
|
Basic |
$ |
0.27 |
|
|
$ |
0.23 |
|
|
$ |
0.52 |
|
|
$ |
0.53 |
|
Diluted |
$ |
0.27 |
|
|
$ |
0.23 |
|
|
$ |
0.52 |
|
|
$ |
0.53 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2022
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 June 30, |
Six months ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
Net
income |
$ |
717 |
|
|
$ |
694 |
|
$ |
1,423 |
|
|
$ |
1,524 |
|
Other comprehensive
income (loss), net of taxes |
|
|
|
|
Items that may be
reclassified subsequently to profit or loss: |
|
|
|
|
Realized losses on derivatives
designated as cash flow hedges, net of tax $nil, $nil, $nil and
$nil |
|
— |
|
|
|
3 |
|
|
— |
|
|
|
3 |
|
Currency translation adjustments,
net of tax $nil, $nil, $nil and $nil |
|
1 |
|
|
|
— |
|
|
1 |
|
|
|
— |
|
Items that will not be
reclassified to profit or loss: |
|
|
|
|
Actuarial loss on post employment
benefit obligations, net of tax $nil, $nil, $nil and $3 |
|
(1 |
) |
|
|
— |
|
|
(1 |
) |
|
|
— |
|
Net change on equity investments,
net of tax $2, ($3), ($6) and $5 |
|
(26 |
) |
|
|
10 |
|
|
32 |
|
|
|
(37 |
) |
Total other comprehensive (loss) income |
|
(26 |
) |
|
|
13 |
|
|
32 |
|
|
|
(34 |
) |
Total comprehensive income |
$ |
691 |
|
|
$ |
707 |
|
$ |
1,455 |
|
|
$ |
1,490 |
|
Attributable to: |
|
|
|
|
Equity holders of Barrick Gold
Corporation |
$ |
462 |
|
|
$ |
424 |
|
$ |
958 |
|
|
$ |
915 |
|
Non-controlling interests |
$ |
229 |
|
|
$ |
283 |
|
$ |
497 |
|
|
$ |
575 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2022
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Statements of Cash Flow
Barrick Gold Corporation (in millions of United States
dollars) (Unaudited) |
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
OPERATING ACTIVITIES |
|
|
|
|
Net income |
$ |
717 |
|
|
$ |
694 |
|
|
$ |
1,423 |
|
|
$ |
1,524 |
|
Adjustments for the following
items: |
|
|
|
|
Depreciation |
|
476 |
|
|
|
500 |
|
|
|
936 |
|
|
|
1,007 |
|
Finance costs, net |
|
101 |
|
|
|
100 |
|
|
|
199 |
|
|
|
194 |
|
Impairment (reversals) charges (notes 9b and 13) |
|
3 |
|
|
|
2 |
|
|
|
5 |
|
|
|
(87 |
) |
Income tax expense (note 10) |
|
279 |
|
|
|
343 |
|
|
|
580 |
|
|
|
717 |
|
Income from equity investees (note 12) |
|
(89 |
) |
|
|
(104 |
) |
|
|
(188 |
) |
|
|
(207 |
) |
Gain on sale of non-current assets |
|
(20 |
) |
|
|
(7 |
) |
|
|
(22 |
) |
|
|
(10 |
) |
Loss on currency translation |
|
6 |
|
|
|
7 |
|
|
|
9 |
|
|
|
11 |
|
Change in working capital
(note 11) |
|
(34 |
) |
|
|
(197 |
) |
|
|
(165 |
) |
|
|
(249 |
) |
Other
operating activities (note 11) |
|
(126 |
) |
|
|
(76 |
) |
|
|
(203 |
) |
|
|
(116 |
) |
Operating cash flows before interest and income taxes |
|
1,313 |
|
|
|
1,262 |
|
|
|
2,574 |
|
|
|
2,784 |
|
Interest paid |
|
(129 |
) |
|
|
(131 |
) |
|
|
(152 |
) |
|
|
(153 |
) |
Income
taxes paid1 |
|
(260 |
) |
|
|
(492 |
) |
|
|
(494 |
) |
|
|
(690 |
) |
Net cash provided by operating activities |
|
924 |
|
|
|
639 |
|
|
|
1,928 |
|
|
|
1,941 |
|
INVESTING ACTIVITIES |
|
|
|
|
Property, plant and
equipment |
|
|
|
|
Capital expenditures (note 5) |
|
(755 |
) |
|
|
(658 |
) |
|
|
(1,366 |
) |
|
|
(1,197 |
) |
Sales proceeds |
|
22 |
|
|
|
1 |
|
|
|
23 |
|
|
|
5 |
|
Investment sales |
|
122 |
|
|
|
— |
|
|
|
382 |
|
|
|
— |
|
Divestitures (note 4) |
|
— |
|
|
|
19 |
|
|
|
— |
|
|
|
19 |
|
Dividends received from equity
method investments (note 12) |
|
310 |
|
|
|
35 |
|
|
|
669 |
|
|
|
161 |
|
Shareholder loan repayments from equity method investments (note
12) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Net cash used in investing activities |
|
(301 |
) |
|
|
(603 |
) |
|
|
(292 |
) |
|
|
(1,011 |
) |
FINANCING ACTIVITIES |
|
|
|
|
Lease repayments |
|
(4 |
) |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
(10 |
) |
Debt repayments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
Dividends |
|
(353 |
) |
|
|
(159 |
) |
|
|
(531 |
) |
|
|
(317 |
) |
Return of capital (note
15) |
|
— |
|
|
|
(250 |
) |
|
|
— |
|
|
|
(250 |
) |
Share buyback program (note
15) |
|
(173 |
) |
|
|
— |
|
|
|
(173 |
) |
|
|
— |
|
Funding from non-controlling
interests (note 16) |
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
12 |
|
Disbursements to
non-controlling interests (note 16) |
|
(232 |
) |
|
|
(206 |
) |
|
|
(499 |
) |
|
|
(471 |
) |
Pueblo
Viejo JV partner shareholder loan |
|
35 |
|
|
|
43 |
|
|
|
80 |
|
|
|
64 |
|
Net cash used in financing activities |
|
(727 |
) |
|
|
(570 |
) |
|
|
(1,133 |
) |
|
|
(979 |
) |
Effect of exchange rate changes on cash and
equivalents |
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
(1 |
) |
Net increase (decrease) in cash and equivalents |
|
(107 |
) |
|
|
(534 |
) |
|
|
500 |
|
|
|
(50 |
) |
Cash and equivalents at the beginning of
period |
|
5,887 |
|
|
|
5,672 |
|
|
|
5,280 |
|
|
|
5,188 |
|
Cash and equivalents at the end of period |
$ |
5,780 |
|
|
$ |
5,138 |
|
|
$ |
5,780 |
|
|
$ |
5,138 |
|
- Income taxes paid excludes $10 million (2021:
$57 million) for the three months ended June 30, 2022 and
$36 million (2021: $93 million) for the six months ended
June 30, 2022 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 Second Quarter Report 2022
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Balance Sheets
Barrick Gold Corporation |
As at June 30, |
|
|
As at December 31, |
|
(in millions of United States dollars) (Unaudited) |
|
2022 |
|
|
|
2021 |
|
ASSETS |
|
|
Current assets |
|
|
Cash and equivalents |
$ |
5,780 |
|
|
$ |
5,280 |
|
Accounts receivable |
|
577 |
|
|
|
623 |
|
Inventories |
|
1,699 |
|
|
|
1,734 |
|
Other current assets |
|
754 |
|
|
|
612 |
|
Total current assets |
$ |
8,810 |
|
|
$ |
8,249 |
|
Non-current assets |
|
|
Equity in investees (note 12) |
|
4,113 |
|
|
|
4,594 |
|
Property, plant and equipment |
|
25,202 |
|
|
|
24,954 |
|
Goodwill |
|
4,769 |
|
|
|
4,769 |
|
Intangible assets |
|
149 |
|
|
|
150 |
|
Deferred income tax assets |
|
6 |
|
|
|
29 |
|
Non-current portion of inventory |
|
2,694 |
|
|
|
2,636 |
|
Other assets |
|
1,099 |
|
|
|
1,509 |
|
Total assets |
$ |
46,842 |
|
|
$ |
46,890 |
|
LIABILITIES AND EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$ |
1,537 |
|
|
$ |
1,448 |
|
Debt |
|
13 |
|
|
|
15 |
|
Current income tax liabilities |
|
303 |
|
|
|
285 |
|
Other current liabilities |
|
377 |
|
|
|
338 |
|
Total current liabilities |
$ |
2,230 |
|
|
$ |
2,086 |
|
Non-current liabilities |
|
|
Debt |
|
5,131 |
|
|
|
5,135 |
|
Provisions |
|
2,321 |
|
|
|
2,768 |
|
Deferred income tax liabilities |
|
3,368 |
|
|
|
3,293 |
|
Other liabilities |
|
1,258 |
|
|
|
1,301 |
|
Total liabilities |
$ |
14,308 |
|
|
$ |
14,583 |
|
Equity |
|
|
Capital stock (note 15) |
$ |
28,363 |
|
|
$ |
28,497 |
|
Deficit |
|
(6,173 |
) |
|
|
(6,566 |
) |
Accumulated other comprehensive income (loss) |
|
9 |
|
|
|
(23 |
) |
Other |
|
1,912 |
|
|
|
1,949 |
|
Total equity attributable to Barrick Gold Corporation
shareholders |
$ |
24,111 |
|
|
$ |
23,857 |
|
Non-controlling interests (note 16) |
|
8,423 |
|
|
|
8,450 |
|
Total equity |
$ |
32,534 |
|
|
$ |
32,307 |
|
Contingencies and commitments (notes 5 and 17) |
|
|
Total liabilities and equity |
$ |
46,842 |
|
|
$ |
46,890 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2022
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, 2022 |
1,779,331 |
|
$ |
28,497 |
|
$ |
(6,566 |
) |
$ |
(23 |
) |
$ |
1,949 |
|
$ |
23,857 |
|
$ |
8,450 |
|
$ |
32,307 |
|
Net income |
— |
|
|
— |
|
|
926 |
|
|
— |
|
|
— |
|
|
926 |
|
|
497 |
|
|
1,423 |
|
Total other comprehensive income |
— |
|
|
— |
|
|
— |
|
|
32 |
|
|
— |
|
|
32 |
|
|
— |
|
|
32 |
|
Total comprehensive income |
— |
|
|
— |
|
|
926 |
|
|
32 |
|
|
— |
|
|
958 |
|
|
497 |
|
|
1,455 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(531 |
) |
|
— |
|
|
— |
|
|
(531 |
) |
|
— |
|
|
(531 |
) |
Disbursements to non-controlling interests (note 16) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(524 |
) |
|
(524 |
) |
Dividend reinvestment plan (note 15) |
105 |
|
|
2 |
|
|
(2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Share buyback program (note 15) |
(8,500 |
) |
|
(136 |
) |
|
— |
|
|
— |
|
|
(37 |
) |
|
(173 |
) |
|
— |
|
|
(173 |
) |
Total transactions with owners |
(8,395 |
) |
|
(134 |
) |
|
(533 |
) |
|
— |
|
|
(37 |
) |
|
(704 |
) |
|
(524 |
) |
|
(1,228 |
) |
At June 30, 2022 |
1,770,936 |
|
$ |
28,363 |
|
$ |
(6,173 |
) |
$ |
9 |
|
$ |
1,912 |
|
$ |
24,111 |
|
$ |
8,423 |
|
$ |
32,534 |
|
|
|
|
|
|
|
|
|
|
At January 1, 2021 |
1,778,190 |
|
$ |
29,236 |
|
$ |
(7,949 |
) |
$ |
14 |
|
$ |
2,040 |
|
$ |
23,341 |
|
$ |
8,369 |
|
$ |
31,710 |
|
Net income |
— |
|
|
— |
|
|
949 |
|
|
— |
|
|
— |
|
|
949 |
|
|
575 |
|
|
1,524 |
|
Total other comprehensive loss |
— |
|
|
— |
|
|
— |
|
|
(34 |
) |
|
— |
|
|
(34 |
) |
|
— |
|
|
(34 |
) |
Total comprehensive income (loss) |
— |
|
|
— |
|
|
949 |
|
|
(34 |
) |
|
— |
|
|
915 |
|
|
575 |
|
|
1,490 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(317 |
) |
|
— |
|
|
— |
|
|
(317 |
) |
|
— |
|
|
(317 |
) |
Return of capital (note 15) |
— |
|
|
(250 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(250 |
) |
|
— |
|
|
(250 |
) |
Issued on exercise of stock options |
50 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Funding from non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
|
12 |
|
Disbursements to non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(471 |
) |
|
(471 |
) |
Dividend reinvestment plan |
104 |
|
|
3 |
|
|
(3 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Share-based payments |
898 |
|
|
6 |
|
|
— |
|
|
— |
|
|
(6 |
) |
|
— |
|
|
— |
|
|
— |
|
Total transactions with owners |
1,052 |
|
|
(241 |
) |
|
(320 |
) |
|
— |
|
|
(6 |
) |
|
(567 |
) |
|
(459 |
) |
|
(1,026 |
) |
At June 30, 2021 |
1,779,242 |
|
$ |
28,995 |
|
$ |
(7,320 |
) |
$ |
(20 |
) |
$ |
2,034 |
|
$ |
23,689 |
|
$ |
8,485 |
|
$ |
32,174 |
|
- Includes cumulative translation losses at June 30, 2022:
$93 million (December 31, 2021: $94 million;
June 30, 2021: $95 million).
- Includes additional paid-in capital as at June 30, 2022:
$1,874 million (December 31, 2021: $1,911 million;
June 30, 2021: $1,996 million).
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2022
available on our website, are an integral part of these
consolidated financial statements.
Technical Information
The scientific and technical information contained in this press
release has been reviewed and approved by Simon Bottoms, CGeol,
MGeol, FGS, FAusIMM, Mineral Resources Manager: Africa & Middle
East, a “Qualified Person” as defined in National Instrument 43-101
- Standards of Disclosure for Mineral Projects.
Endnotes
Endnote 1
“Free cash flow” is a non-GAAP financial performance measure
that deducts capital expenditures from net cash provided by
operating activities. Management believes this to be a useful
indicator of our ability to operate without reliance on additional
borrowing or usage of existing cash. Free cash flow is intended to
provide additional information only and does not have any
standardized definition under IFRS, and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Other companies may calculate this measure
differently. Further details on this non-GAAP financial performance
measure are provided in the MD&A accompanying Barrick’s
financial statements filed from time to time on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Cash Provided by Operating
Activities to Free Cash Flow
($
millions) |
For the three months ended |
|
For the six months ended |
|
|
6/30/22 |
|
3/31/22 |
|
6/30/21 |
|
6/30/22 |
|
6/30/21 |
|
Net
cash provided by operating activities |
924 |
|
1,004 |
|
639 |
|
1,928 |
|
1,941 |
|
Capital expenditures |
(755 |
) |
(611 |
) |
(658 |
) |
(1,366 |
) |
(1,197 |
) |
Free cash flow |
169 |
|
393 |
|
(19 |
) |
562 |
|
744 |
|
Endnote 2
“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; other items that are not
indicative of the underlying operating performance of our core
mining business; and the tax effect and non-controlling interest of
these items. Management uses this measure internally to evaluate
our underlying operating performance for the reporting periods
presented and to assist with the planning and forecasting of future
operating results. Management believes that adjusted net earnings
is a useful measure of our performance because 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 definition under IFRS and should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may
calculate these measures differently. Further details on these
non-GAAP financial performance measures are provided in the
MD&A accompanying Barrick’s financial statements filed from
time to time on SEDAR at www.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 |
|
For the six months ended |
|
|
6/30/22 |
|
3/31/22 |
|
6/30/21 |
|
6/30/22 |
|
6/30/21 |
|
Net
earnings attributable to equity holders of the Company |
488 |
|
438 |
|
411 |
|
926 |
|
949 |
|
Impairment charges (reversals)
related to intangibles, goodwill, property, plant and equipment,
and investmentsa |
3 |
|
2 |
|
2 |
|
5 |
|
(87 |
) |
Acquisition/disposition
gainsb |
(20 |
) |
(2 |
) |
(7 |
) |
(22 |
) |
(10 |
) |
Loss on currency translation |
6 |
|
3 |
|
7 |
|
9 |
|
11 |
|
Significant tax adjustmentsc |
38 |
|
17 |
|
62 |
|
55 |
|
109 |
|
Other (income) expense
adjustmentsd |
(95 |
) |
13 |
|
14 |
|
(82 |
) |
25 |
|
Tax
effect and non-controlling intereste |
(1 |
) |
(8 |
) |
24 |
|
(9 |
) |
23 |
|
Adjusted net earnings |
419 |
|
463 |
|
513 |
|
882 |
|
1,020 |
|
Net earnings per sharef |
0.27 |
|
0.25 |
|
0.23 |
|
0.52 |
|
0.53 |
|
Adjusted net earnings per sharef |
0.24 |
|
0.26 |
|
0.29 |
|
0.50 |
|
0.57 |
|
- For the three month period ended June 30, 2022, we recorded no
significant impairment charges or reversals. Net impairment
reversals for the six months ended June 30, 2021 mainly relate to
non-current asset reversals at Lagunas Norte.
- For the three and six month periods ended June 30, 2022,
acquisition/disposition gains relate to miscellaneous permit and
land assets.
- For the three month period ended June 30, 2022, significant tax
adjustments mainly relate to foreign currency translation gains and
losses on tax balances, changes in the discount rate assumptions on
our closed mine rehabilitation provision and care and maintenance
expenses at Porgera. For the three and six month periods ended June
30, 2021, significant tax adjustments primarily relate to deferred
tax expense as a result of tax reform measures in Argentina. The
six month period ended June 30, 2021 was further impacted by the
remeasurement of deferred tax balances for changes in foreign
currency rates and the recognition/derecognition of our deferred
taxes in various jurisdictions.
- Other (income) expense adjustments for the three and six month
periods ended June 30, 2022 mainly relate to changes in the
discount rate assumptions on our closed mine rehabilitation
provision and care and maintenance expenses at Porgera. For the
three months ended March 31, 2022 and the three and six month
periods ended June 30, 2021, other (income) expense adjustments
mainly relate to care and maintenance expenses at Porgera.
- Tax effect and non-controlling interest for the three and six
month periods ended June 30, 2022 and the three month ended March
31, 2022 primarily relates to other (income) expense adjustments,
while tax effect and non-controlling interest for the three and six
month periods ended June 30, 2021 mainly relates to the net
impairment charges (reversals) related to long-lived assets.
- Calculated using weighted average number of shares outstanding
under the basic method of earnings per share.
Endnote 3
Calculated as cash and equivalents ($5,780 million) less
debt ($5,144 million).
Endnote 4
“Realized price” is a non-GAAP financial performance measure
which excludes from sales: unrealized gains and losses on non-hedge
derivative contracts; unrealized mark-to-market gains and losses on
provisional pricing from copper and gold sales contracts; sales
attributable to ore purchase arrangements; treatment and refining
charges; and cumulative catch-up adjustments to revenue relating to
our streaming arrangements. This measure is intended to enable
Management to better understand the price realized in each
reporting period for gold and copper sales because unrealized
mark-to-market values of non-hedge gold and copper derivatives are
subject to change each period due to changes in market factors such
as market and forward gold and copper prices, so that prices
ultimately realized may differ from those recorded. The exclusion
of such unrealized mark-to-market gains and losses from the
presentation of this performance measure enables investors to
understand performance based on the realized proceeds of selling
gold and copper production. The realized price measure is intended
to provide additional information and does not have any
standardized definition under IFRS and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Other companies may calculate this measure
differently. Further details on these non-GAAP financial
performance measures are provided in the MD&A accompanying
Barrick’s financial statements filed from time to time on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Sales to Realized Price per
ounce/pound
($
millions, except per ounce/pound information in dollars) |
Gold |
Copper |
Gold |
Copper |
For the three months ended |
For the six months ended |
|
6/30/22 |
|
3/31/22 |
|
6/30/21 |
|
6/30/22 |
3/31/22 |
6/30/21 |
6/30/22 |
|
6/30/21 |
|
6/30/22 |
6/30/21 |
Sales |
2,597 |
|
2,511 |
|
2,589 |
|
211 |
287 |
234 |
5,108 |
|
5,230 |
|
498 |
490 |
Sales applicable to
non-controlling interests |
(779 |
) |
(787 |
) |
(779 |
) |
0 |
0 |
0 |
(1,566 |
) |
(1,593 |
) |
0 |
0 |
Sales applicable to equity
method investmentsa,b |
145 |
|
136 |
|
168 |
|
164 |
188 |
161 |
281 |
|
322 |
|
352 |
331 |
Sales applicable to sites in
closure or care and maintenancec |
(30 |
) |
0 |
|
(28 |
) |
0 |
0 |
0 |
(30 |
) |
(69 |
) |
0 |
0 |
Treatment and refinement
charges |
2 |
|
3 |
|
0 |
|
47 |
51 |
39 |
5 |
|
0 |
|
98 |
80 |
Revenues – as adjusted |
1,935 |
|
1,863 |
|
1,950 |
|
422 |
526 |
434 |
3,798 |
|
3,890 |
|
948 |
901 |
Ounces/pounds sold (000s ounces/millions pounds)c |
1,040 |
|
993 |
|
1,070 |
|
113 |
113 |
96 |
2,033 |
|
2,163 |
|
226 |
209 |
Realized gold/copper price per ounce/poundd |
1,861 |
|
1,876 |
|
1,820 |
|
3.72 |
4.68 |
4.57 |
1,868 |
|
1,798 |
|
4.20 |
4.32 |
- Represents sales of $145 million and $282 million,
respectively, for the three and six month periods ended
June 30, 2022 (March 31, 2022: $137 million and
June 30, 2021: $169 million and $323 million,
respectively) applicable to our 45% equity method investment in
Kibali for gold. Represents sales of $99 million and $217
million, respectively, for the three and six months ended
June 30, 2022 (March 31, 2022: $118 million and
June 30, 2021: $87 million and $196 million) applicable to our
50% equity method investment in Zaldívar and $69 million and $144
million, respectively (March 31, 2022: $75 million and
June 30, 2021: $79 million and $144 million) applicable to our
50% equity method investment in Jabal Sayid for copper.
- Sales applicable to equity method investments are net of
treatment and refinement charges.
- Excludes Pierina, Lagunas Norte up until its divestiture in
June 2021, and Buzwagi starting in the fourth quarter of 2021. Some
of these assets are producing incidental ounces while in closure or
care and maintenance.
- Realized price per ounce/pound may not calculate based on
amounts presented in this table due to rounding.
Endnote 5
On an attributable basis.
Endnote 6
Capital expenditures are classified into minesite sustaining
capital expenditures or project capital expenditures depending on
the nature of the expenditure. Minesite sustaining capital
expenditures is the capital spending required to support current
production levels. Project capital expenditures represent the
capital spending at new projects and major, discrete projects at
existing operations intended to increase net present value through
higher production or longer mine life. Management believes this to
be a useful indicator of the purpose of capital expenditures and
this distinction is an input into the calculation of all-in
sustaining costs per ounce and all-in costs per ounce. Classifying
capital expenditures is intended to provide additional information
only and does not have any standardized definition under IFRS, and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Other
companies may calculate these measures differently. The following
table reconciles these non-GAAP financial performance measures to
the most directly comparable IFRS measure.
Reconciliation of the Classification of Capital
Expenditures
($
millions) |
For the three months ended |
For the six months ended |
|
6/30/22 |
3/31/22 |
6/30/21 |
6/30/22 |
6/30/21 |
Minesite sustaining capital expenditures |
523 |
420 |
452 |
943 |
857 |
Project capital expenditures |
226 |
186 |
203 |
412 |
334 |
Capitalized interest |
6 |
5 |
3 |
11 |
6 |
Total consolidated capital expenditures |
755 |
611 |
658 |
1,366 |
1,197 |
Endnote 7
Attributable capital expenditures are presented on the same
basis as guidance, which includes our 61.5% share of Nevada Gold
Mines, our 60% share of Pueblo Viejo, our 80% share of
Loulo-Gounkoto, our 89.7% share of Tongon, our 84% share of North
Mara and Bulyanhulu and our 50% share of Zaldívar and Jabal
Sayid.
Endnote 8
Gold cost of sales per ounce is calculated as cost of sales
across our gold operations (excluding sites in closure or care and
maintenance) divided by ounces sold (both on an attributable basis
using Barrick's ownership share). 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). References to attributable basis means our 100%
share of Hemlo and Lumwana, our 61.5% share of Nevada Gold Mines,
our 60% share of Pueblo Viejo, our 80% share of Loulo-Gounkoto, our
89.7% share of Tongon, our 84% share of North Mara, Bulyanhulu and
Buzwagi up until the third quarter of 2021, our 50% share of
Veladero, Zaldívar and Jabal Sayid, our 47.5% share of Porgera and
our 45% share of Kibali.
Endnote 9
“Total cash costs” per ounce, “All-in sustaining costs” per
ounce and “All-in costs” per ounce are non-GAAP financial
performance measures. “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 includes minesite sustaining capital
expenditures, sustaining leases, general and administrative costs,
minesite exploration and evaluation costs, and reclamation cost
accretion and amortization. These additional costs reflect the
expenditures made to maintain current production levels. "All in
costs" per ounce 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 of Barrick in
understanding the costs associated with producing gold,
understanding the economics of gold mining, assessing our operating
performance and also our ability to generate free cash flow from
current operations and to generate free cash flow on an overall
company basis. “Total cash costs” per ounce, “All-in sustaining
costs” per ounce and "All-in costs" per ounce are intended to
provide additional information only and do not have standardized
definitions under IFRS and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. Although a standardized definition of all-in sustaining
costs was published by the World Gold Council (a market development
organization for the gold industry comprised of and funded by gold
mining companies from around the world, including Barrick), it is
not a regulatory organization, and other companies may calculate
this measure differently. Further details on these non-GAAP
financial performance measures are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR at www.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 |
|
For the six months ended |
|
|
Footnote |
6/30/22 |
|
3/31/22 |
|
6/30/21 |
|
6/30/22 |
|
6/30/21 |
|
Cost of sales applicable to gold production |
|
1,703 |
|
1,582 |
|
1,561 |
|
3,285 |
|
3,132 |
|
Depreciation |
|
(438 |
) |
(419 |
) |
(448 |
) |
(857 |
) |
(902 |
) |
Cash cost of sales applicable to equity method investments |
|
54 |
|
51 |
|
55 |
|
105 |
|
114 |
|
By-product credits |
|
(51 |
) |
(55 |
) |
(70 |
) |
(106 |
) |
(129 |
) |
Realized (gains) losses on hedge and non-hedge derivatives |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Non-recurring items |
a |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Other |
b |
(22 |
) |
(1 |
) |
(22 |
) |
(23 |
) |
(55 |
) |
Non-controlling interests |
c |
(358 |
) |
(331 |
) |
(294 |
) |
(689 |
) |
(596 |
) |
Total cash costs |
|
888 |
|
827 |
|
782 |
|
1,715 |
|
1,564 |
|
General & administrative costs |
|
30 |
|
54 |
|
47 |
|
84 |
|
85 |
|
Minesite exploration and evaluation costs |
d |
20 |
|
10 |
|
16 |
|
30 |
|
32 |
|
Minesite sustaining capital expenditures |
e |
523 |
|
420 |
|
452 |
|
943 |
|
857 |
|
Sustaining leases |
|
6 |
|
9 |
|
6 |
|
15 |
|
19 |
|
Rehabilitation - accretion and amortization (operating sites) |
f |
13 |
|
11 |
|
13 |
|
24 |
|
24 |
|
Non-controlling interest, copper operations and other |
g |
(221 |
) |
(176 |
) |
(151 |
) |
(397 |
) |
(305 |
) |
All-in sustaining costs |
|
1,259 |
|
1,155 |
|
1,165 |
|
2,414 |
|
2,276 |
|
Global exploration and evaluation and project expense |
d |
80 |
|
57 |
|
61 |
|
137 |
|
106 |
|
Community relations costs not related to current operations |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Project capital expenditures |
e |
226 |
|
186 |
|
203 |
|
412 |
|
334 |
|
Non-sustaining leases |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Rehabilitation - accretion and amortization (non-operating
sites) |
f |
5 |
|
3 |
|
4 |
|
8 |
|
7 |
|
Non-controlling interest and copper operations and other |
g |
(68 |
) |
(58 |
) |
(74 |
) |
(126 |
) |
(116 |
) |
All-in costs |
|
1,502 |
|
1,343 |
|
1,359 |
|
2,845 |
|
2,607 |
|
Ounces sold - equity basis (000s ounces) |
h |
1,040 |
|
993 |
|
1,070 |
|
2,033 |
|
2,163 |
|
Cost of sales per ounce |
i,j |
1,216 |
|
1,190 |
|
1,107 |
|
1,203 |
|
1,090 |
|
Total cash costs per ounce |
j |
855 |
|
832 |
|
729 |
|
844 |
|
723 |
|
Total
cash costs per ounce (on a co-product basis) |
j,k |
887 |
|
869 |
|
766 |
|
878 |
|
757 |
|
All-in sustaining costs per ounce |
j |
1,212 |
|
1,164 |
|
1,087 |
|
1,188 |
|
1,052 |
|
All-in
sustaining costs per ounce (on a co-product basis) |
j,k |
1,244 |
|
1,201 |
|
1,124 |
|
1,222 |
|
1,086 |
|
All-in costs per ounce |
j |
1,444 |
|
1,353 |
|
1,269 |
|
1,399 |
|
1,206 |
|
All-in
costs per ounce (on a co-product basis) |
j,k |
1,476 |
|
1,390 |
|
1,306 |
|
1,433 |
|
1,240 |
|
a. |
Non-recurring itemsThese costs are not indicative
of our cost of production and have been excluded from the
calculation of total cash costs. |
b. |
OtherOther adjustments for the three and six month
periods ended June 30, 2022 include the removal of total cash
costs and by-product credits associated with Pierina, Golden
Sunlight, Lagunas Norte up until its divestiture in June 2021, and
Buzwagi starting the fourth quarter of 2021, which all are
producing incidental ounces, of $7 million and $10 million,
respectively (March 31, 2022: $3 million; June 30, 2021:
$14 million and $38 million, respectively). |
c. |
Non-controlling interestsNon-controlling interests
include non-controlling interests related to gold production of
$505 million and $981 million, respectively, for the three and
six month periods ended June 30, 2022 (March 31, 2022:
$476 million and June 30, 2021: $453 million and $915
million). Non-controlling interests include Nevada Gold Mines,
Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara, Bulyanhulu, and
Buzwagi up until the third quarter of 2021. Refer to Note 5 to the
Financial Statements for further information. |
d. |
Exploration and evaluation costsExploration,
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 50 of Barrick’s Q2 2022
MD&A. |
e. |
Capital expendituresCapital expenditures are
related to our gold sites only and are split between minesite
sustaining and project capital expenditures. Project capital
expenditures are capital spending at new projects and major,
distinct projects at existing operations intended to increase net
present value through higher production or longer mine life.
Significant projects in the current year are the expansion project
at Pueblo Viejo, construction of the Third Shaft at Turquoise
Ridge, and the Veladero Phase 7 expansion. Refer to page 49 of
Barrick’s Q2 2022 MD&A. |
f. |
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. |
g. |
Non-controlling interest and copper
operationsRemoves 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
(up until the third quarter of 2021) operating segments. It also
includes capital expenditures applicable to our equity method
investment in Kibali. Figures remove the impact of Pierina, Golden
Sunlight, Lagunas Norte up until its divestiture in June 2021, and
Buzwagi starting the fourth quarter of 2021. The impact is
summarized as the following: |
($
millions) |
For the three months ended |
|
For the six months ended |
|
Non-controlling interest, copper operations and other |
6/30/22 |
|
3/31/22 |
|
6/30/21 |
|
6/30/22 |
|
6/30/21 |
|
General & administrative costs |
(5 |
) |
(13 |
) |
(7 |
) |
(18 |
) |
(13 |
) |
Minesite exploration and
evaluation expenses |
(7 |
) |
(3 |
) |
(3 |
) |
(10 |
) |
(10 |
) |
Rehabilitation - accretion and
amortization (operating sites) |
(4 |
) |
(3 |
) |
(4 |
) |
(7 |
) |
(7 |
) |
Minesite sustaining capital expenditures |
(205 |
) |
(157 |
) |
(137 |
) |
(362 |
) |
(275 |
) |
All-in sustaining costs total |
(221 |
) |
(176 |
) |
(151 |
) |
(397 |
) |
(305 |
) |
Global exploration and evaluation and project expense |
(11 |
) |
(4 |
) |
(8 |
) |
(15 |
) |
(9 |
) |
Project capital expenditures |
(57 |
) |
(54 |
) |
(66 |
) |
(111 |
) |
(107 |
) |
All-in costs total |
(68 |
) |
(58 |
) |
(74 |
) |
(126 |
) |
(116 |
) |
h. |
Ounces sold - equity basisFigures remove the
impact of: Pierina, Golden Sunlight, Lagunas Norte up until its
divestiture in June 2021, and Buzwagi starting the fourth quarter
of 2021. Some of these assets are producing incidental ounces while
in closure or care and maintenance. |
i. |
Cost of sales per ounceFigures remove the cost of
sales impact of: Pierina of $8 million and $11 million,
respectively, for the three and six month periods ended
June 30, 2022 (March 31, 2022: $3 million and
June 30, 2021: $2 million and $7 million); Golden Sunlight of
$nil and $nil, respectively, for the three and six month periods
ended June 30, 2022 (March 31, 2022: $nil and
June 30, 2021: $nil and $nil, respectively); up until its
divestiture in June 2021, Lagunas Norte of $nil and $nil,
respectively, for the three and six month periods ended
June 30, 2022 (March 31, 2022: $nil and June 30,
2021: $14 million and $37 million, respectively); and starting the
fourth quarter of 2021, Buzwagi of $nil and $nil, respectively, for
the three and six month periods ended June 30, 2022
(March 31, 2022: $nil and June 30, 2021: $nil and $nil,
respectively), which are producing incidental ounces. Gold cost of
sales per ounce is calculated as cost of sales across our gold
operations (excluding sites in closure or care and maintenance)
divided by ounces sold (both on an attributable basis using
Barrick's ownership share). |
j. |
Per ounce figuresCost of sales per ounce, total
cash costs per ounce, all-in sustaining costs per ounce and all-in
costs per ounce may not calculate based on amounts presented in
this table due to rounding. |
k. |
Co-product costs per ounceTotal cash costs per
ounce, all-in sustaining costs per ounce and all-in costs per ounce
presented on a co-product basis removes the impact of by-product
credits of our gold production (net of non-controlling interest)
calculated as: |
($
millions) |
For the three months ended |
|
For the six months ended |
|
|
6/30/22 |
|
3/31/22 |
|
6/30/21 |
|
6/30/22 |
|
6/30/21 |
|
By-product credits |
51 |
|
55 |
|
70 |
|
106 |
|
129 |
|
Non-controlling interest |
(18 |
) |
(19 |
) |
(30 |
) |
(37 |
) |
(56 |
) |
By-product credits (net of non-controlling interest) |
33 |
|
36 |
|
40 |
|
69 |
|
73 |
|
Endnote 10
“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, sustaining leases, general and
administrative costs, minesite exploration and evaluation costs,
royalties and production taxes, reclamation cost accretion and
amortization and write-downs taken on inventory to net realizable
value. Management believes that the use of “C1 cash costs” per
pound and “all-in sustaining costs” per pound will enable investors
to better understand the operating performance of our copper mines
as this measure reflects all of the sustaining expenditures
incurred in order to produce copper. “C1 cash costs” per pound and
“All-in sustaining costs” per pound are intended to provide
additional information only and do not have standardized
definitions under IFRS and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. Other companies may calculate these measures
differently. Further details on these non-GAAP financial
performance measures are provided in the MD&A accompanying
Barrick’s financial statements filed from time to time on SEDAR at
www.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 |
|
For the six months ended |
|
|
6/30/22 |
|
3/31/22 |
|
6/30/21 |
|
6/30/22 |
|
6/30/21 |
|
Cost of sales |
143 |
|
154 |
|
137 |
|
297 |
|
273 |
|
Depreciation/amortization |
(34 |
) |
(38 |
) |
(46 |
) |
(72 |
) |
(94 |
) |
Treatment and refinement charges |
47 |
|
51 |
|
39 |
|
98 |
|
80 |
|
Cash cost of sales applicable to equity method investments |
74 |
|
72 |
|
72 |
|
146 |
|
151 |
|
Less: royalties and production taxesa |
(32 |
) |
(32 |
) |
(25 |
) |
(64 |
) |
(48 |
) |
By-product credits |
(6 |
) |
(3 |
) |
(3 |
) |
(9 |
) |
(7 |
) |
Other |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
C1 cash costs |
192 |
|
204 |
|
174 |
|
396 |
|
355 |
|
General & administrative costs |
6 |
|
12 |
|
5 |
|
18 |
|
10 |
|
Rehabilitation - accretion and amortization |
1 |
|
1 |
|
2 |
|
2 |
|
3 |
|
Royalties and production taxesa |
32 |
|
32 |
|
25 |
|
64 |
|
48 |
|
Minesite exploration and evaluation costs |
5 |
|
3 |
|
4 |
|
8 |
|
6 |
|
Minesite sustaining capital expenditures |
89 |
|
67 |
|
48 |
|
156 |
|
90 |
|
Sustaining leases |
2 |
|
1 |
|
2 |
|
3 |
|
4 |
|
All-in sustaining costs |
327 |
|
320 |
|
260 |
|
647 |
|
516 |
|
Pounds sold - consolidated basis (millions pounds) |
113 |
|
113 |
|
96 |
|
226 |
|
209 |
|
Cost of sales per poundb,c |
2.11 |
|
2.21 |
|
2.43 |
|
2.16 |
|
2.26 |
|
C1 cash cost per poundb |
1.70 |
|
1.81 |
|
1.83 |
|
1.75 |
|
1.71 |
|
All-in sustaining costs per poundb |
2.87 |
|
2.85 |
|
2.74 |
|
2.86 |
|
2.48 |
|
- For the three and six month periods
ended June 30, 2022, royalties and production taxes include
royalties of $32 million and $64 million, respectively
(March 31, 2022: $32 million and June 30, 2021: $25
million and $48 million, respectively).
- Cost of sales per pound, C1 cash
costs per pound and all-in sustaining costs per pound may not
calculate based on amounts presented in this table due to
rounding.
- Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share).
Endnote 11
Includes $9 million that settled in July 2022.
Endnote 12
On a 100% basis. See the Technical Report on the Pueblo Viejo
mine, Sanchez Ramirez Province, Dominican Republic, dated March 19,
2018, and filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov
on March 23, 2018.
Endnote 13
The 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, the number of
outstanding common shares, and other factors deemed relevant by the
Board.
Endnote 14
A 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 in the lower half of the industry cost curve. A Tier One
Copper Asset is an asset with a reserve potential of greater than
five million tonnes of contained copper and C1 cash costs per pound
over the mine life that are in the lower half of the industry cost
curve.
Endnote 15
On a 100% basis.
Endnote 16
Total reportable incident frequency rate (“TRIFR”) is a ratio
calculated as follows: number of reportable injuries x 1,000,000
hours divided by the total number of hours worked. Reportable
injuries include fatalities, lost time injuries, restricted duty
injuries, and medically treated injuries.
Endnote 17
Included within our 61.5% interest in Carlin is Nevada Gold
Mines' 100% interest in South Arturo.
Endnote 18
Includes Goldrush.
Endnote 19
Porgera was placed on temporary care and maintenance on April
25, 2020 and remains excluded from our 2022 guidance. We expect to
update our guidance to include Porgera following both the execution
of definitive agreements to implement the Commencement Agreement
and the finalization of a timeline for the resumption of full mine
operations. Refer to page 8 of Barrick’s Q2 2022 MD&A for
further details.
Endnote 20
Total cash costs and all-in sustaining costs per ounce include
costs allocated to non-operating sites.
Endnote 21
Operating division guidance ranges reflect expectations at each
individual operating division, and may not add up to the
company-wide guidance range total. Guidance ranges exclude Pierina
which is producing incidental ounces while in closure.
Endnote 22
Includes corporate administration costs.
Endnote 23
EBITDA is a non-GAAP financial performance measure, which
excludes the following from net earnings: income tax expense;
finance costs; finance income; and depreciation. Management
believes that EBITDA is a valuable indicator of our ability to
generate liquidity by producing operating cash flow to fund working
capital needs, service debt obligations, and fund capital
expenditures. Management uses EBITDA for this purpose. Adjusted
EBITDA removes the effect of impairment charges;
acquisition/disposition gains/losses; foreign currency translation
gains/losses; and other expense adjustments. We also remove the
impact of the income tax expense, finance costs, finance income and
depreciation incurred in our equity method accounted investments.
We believe these items provide a greater level of consistency with
the adjusting items included in our adjusted net earnings
reconciliation, with the exception that these amounts are adjusted
to remove any impact on finance costs/income, income tax expense
and/or depreciation as they do not affect EBITDA. We believe this
additional information will assist analysts, investors and other
stakeholders of Barrick in better understanding our ability to
generate liquidity from our full business, including equity method
investments, by excluding these amounts from the calculation as
they are not indicative of the performance of our core mining
business and not necessarily reflective of the underlying operating
results for the periods presented. EBITDA and adjusted EBITDA are
intended to provide additional information only and do not have any
standardized definition under IFRS and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Other companies may calculate EBITDA and
adjusted EBITDA differently. Further details on these non-GAAP
financial performance measures are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to EBITDA
and Adjusted EBITDA
($
millions) |
For the three months ended |
|
For the six months ended |
|
|
6/30/22 |
|
3/31/22 |
|
6/30/21 |
|
6/30/22 |
|
6/30/21 |
|
Net earnings |
717 |
|
706 |
|
694 |
|
1,423 |
|
1,524 |
|
Income tax expense |
279 |
|
301 |
|
343 |
|
580 |
|
717 |
|
Finance costs, neta |
73 |
|
76 |
|
76 |
|
149 |
|
153 |
|
Depreciation |
476 |
|
460 |
|
500 |
|
936 |
|
1,007 |
|
EBITDA |
1,545 |
|
1,543 |
|
1,613 |
|
3,088 |
|
3,401 |
|
Impairment charges (reversals)
of long-lived assetsb |
3 |
|
2 |
|
2 |
|
5 |
|
(87 |
) |
Acquisition/disposition
(gains) lossesc |
(20 |
) |
(2 |
) |
(7 |
) |
(22 |
) |
(10 |
) |
Loss on currency
translation |
6 |
|
3 |
|
7 |
|
9 |
|
11 |
|
Other expense
adjustmentsd |
(95 |
) |
13 |
|
14 |
|
(82 |
) |
25 |
|
Income
tax expense, net finance costs, and depreciation from equity
investees |
88 |
|
86 |
|
90 |
|
174 |
|
179 |
|
Adjusted EBITDA |
1,527 |
|
1,645 |
|
1,719 |
|
3,172 |
|
3,519 |
|
- Finance costs exclude accretion.
- For the three month period ended June 30, 2022, we recorded no
significant impairment charges or reversals. Net impairment
reversals for the six months ended June 30, 2021 mainly relate to
non-current asset reversals at Lagunas Norte.
- For the three and six month periods ended June 30, 2022,
acquisition/disposition gains relate to miscellaneous permit and
land assets.
- Other (income) expense adjustments for the three and six month
periods ended June 30, 2022 mainly relate to changes in the
discount rate assumptions on our closed mine rehabilitation
provision and care and maintenance expenses at Porgera. For the
three months ended March 31, 2022 and the three and six month
periods ended June 30, 2021, other (income) expense adjustments
mainly relate to care and maintenance expenses at Porgera.
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
GOLDThe New York Stock
Exchange
ABXThe Toronto Stock
Exchange
Transfer Agents and Registrars
TSX Trust CompanyP.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 “believe”, “expect”,
“strategy”, “target”, “plan”, “opportunities”, “guidance”,
“allocated”, “project”, “continue”, “committed”, “estimate”,
“potential”, “capable”, “proposed”, “future”, “prospective”,
“focus”, “during”, “ongoing”, “following”, “subject to”,
“scheduled”, “will”, “could”, “would”, “should”, “may” and similar
expressions identify forward-looking statements. In particular,
this press release contains forward-looking statements including,
without limitation, with respect to: Barrick’s forward-looking
production guidance; estimates of future cost of sales per ounce
for gold and per pound for copper, total cash costs per ounce and
C1 cash costs per pound, and all-in-sustaining costs per
ounce/pound; projected capital, operating and exploration
expenditures; our ability to convert resources into reserves and
replace reserves net of depletion from production; mine life and
production rates; Barrick’s global exploration strategy and planned
exploration activities, including in new prospective territories in
the North America, Latin America, Africa and the Middle East, and
Asia Pacific regions; the timeline and process for the
reconstitution of a joint venture to carry out the future
development and operation of the Reko Diq project; the planned
updating of the historical Reko Diq feasibility study and our plans
upon the project’s reconstitution; the proposed fiscal terms
applicable to the Reko Diq project and the joint venture through
which it is held; our plans and expected completion and benefits of
our growth projects, including the Pueblo Viejo plant expansion and
mine life extension project and Goldrush; the ability of the North
Mara and Bulyanhulu mines to achieve Tier One status as a combined
complex; the timeline for development of Bulyanhulu’s Deep West and
North Mara’s Gena pushback; the anticipated benefits of the
extension of Barrick’s credit facility and inclusion of
sustainability-linked metrics; Barrick’s strategy, plans, targets
and goals in respect of environmental and social governance issues,
including local community relations and investments (including
local content programs and planned investments to develop
healthcare, education and infrastructure in Tanzania and local
employment, development and education initiatives in Mali), climate
change, greenhouse gas emissions reduction targets, tailings
storage facility management (including the new Tailings Storage
Facility at Pueblo Viejo), health and safety performance and
biodiversity initiatives; Barrick’s performance dividend policy;
and expectations regarding future price assumptions, financial
performance and other outlook or guidance.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: fluctuations in the spot
and forward price of gold, copper or certain other commodities
(such as silver, diesel fuel, natural gas and electricity); risks
associated with projects in the early stages of evaluation and for
which additional engineering and other analysis is required; risks
related to the possibility that future exploration results will not
be consistent with the Company’s expectations, that quantities or
grades of reserves will be diminished, and that resources may not
be converted to reserves; risks associated with the fact that
certain of the initiatives described in this press release are
still in the early stages and may not materialize; changes in
mineral production performance, exploitation and exploration
successes; risks that exploration data may be incomplete and
considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; the speculative nature of
mineral exploration and development; lack of certainty with respect
to foreign legal systems, corruption and other factors that are
inconsistent with the rule of law; changes in national and local
government legislation, taxation, controls or regulations and/or
changes in the administration of laws, policies and practices; the
potential impact of proposed changes to Chilean law on the status
of value added tax (“VAT”) refunds received in Chile in connection
with the development of the Pascua-Lama project; expropriation or
nationalization of property and political or economic developments
in Canada, the United States or other countries in which Barrick
does or may carry on business in the future; risks relating to
political instability in certain of the jurisdictions in which
Barrick operates; timing of receipt of, or failure to comply with,
necessary permits and approvals; non-renewal of or failure to
obtain key licenses by governmental authorities; failure to comply
with environmental and health and safety laws and regulations;
contests over title to properties, particularly title to
undeveloped properties, or over access to water, power and other
required infrastructure; the liability associated with risks and
hazards in the mining industry, and the ability to maintain
insurance to cover such losses; increased costs and physical risks,
including extreme weather events and resource shortages, related to
climate change; damage to the Company’s reputation due to the
actual or perceived occurrence of any number of events, including
negative publicity with respect to the Company’s handling of
environmental matters or dealings with community groups, whether
true or not; risks related to operations near communities that may
regard Barrick’s operations as being detrimental to them;
litigation and legal and administrative proceedings; operating or
technical difficulties in connection with mining or development
activities, including geotechnical challenges, tailings dam and
storage facilities failures, and disruptions in the maintenance or
provision of required infrastructure and information technology
systems; increased costs, delays, suspensions and technical
challenges associated with the construction of capital projects;
risks associated with working with partners in jointly controlled
assets; risks related to disruption of supply routes which may
cause delays in construction and mining activities; risk of loss
due to acts of war, terrorism, sabotage and civil disturbances;
risks associated with artisanal and illegal mining; risks
associated with Barrick’s infrastructure, information technology
systems and the implementation of Barrick’s technological
initiatives; the impact of global liquidity and credit availability
on the timing of cash flows and the values of assets and
liabilities based on projected future cash flows; the impact of
inflation, including global inflationary pressures driven by supply
chain disruptions caused by the ongoing Covid-19 pandemic and
global energy cost increases following the invasion of Ukraine by
Russia; adverse changes in our credit ratings; fluctuations in the
currency markets; changes in U.S. dollar interest rates; risks
arising from holding derivative instruments (such as credit risk,
market liquidity risk and mark-to-market risk); risks related to
the demands placed on the Company’s management, the ability of
management to implement its business strategy and enhanced
political risk in certain jurisdictions; uncertainty whether some
or all of Barrick’s targeted investments and projects will meet the
Company’s capital allocation objectives and internal hurdle rate;
whether benefits expected from recent transactions being realized;
business opportunities that may be presented to, or pursued by, the
Company; our ability to successfully integrate acquisitions or
complete divestitures; risks related to competition in the mining
industry; employee relations including loss of key employees;
availability and increased costs associated with mining inputs and
labor; risks associated with diseases, epidemics and pandemics,
including the effects and potential effects of the global Covid-19
pandemic; risks related to the failure of internal controls; and
risks related to the impairment of the Company’s goodwill and
assets. Barrick also cautions that its 2022 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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