Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick” or the
“Company”) today reported preliminary full year and fourth quarter
2022 production results. On the back of stronger Q4 production, 13%
higher than the previous quarter, preliminary gold production for
the full year of 4.14 million ounces was approximately 1% lower
than the 4.2 million ounces1 previously guided, while preliminary
copper production of 440 million pounds for 2022 was in line with
the guidance range of 420 to 470 million pounds.
The preliminary Q4 results show sales of 1.11
million ounces of gold and 99 million pounds of copper, as well as
preliminary Q4 production of 1.12 million ounces of gold and 96
million pounds of copper. The average market price for gold in Q4
was $1,726 per ounce and the average market price for copper in Q4
was $3.63 per pound.
Preliminary Q4 gold production improved from Q3 and
was the highest quarter for the year with stronger performances
from Cortez, Carlin and Tongon. This was partially offset by
lower production at Pueblo Viejo which finished the year well
within guidance. Compared to Q3, Q4 gold cost of sales per
ounce2 is expected to be 4% to 6% higher, total cash costs per
ounce3 are expected to be 2% to 4% lower and all-in sustaining
costs per ounce3 are expected to be 1% to 3% lower than the prior
quarter.
Preliminary Q4 copper production was lower than Q3,
driven by higher waste stripping, lower throughput as well as lower
grades at Lumwana as per the mine plan and in line with our
previous disclosures. Compared to Q3, Q4 copper cost of sales per
pound2 is expected to be 38% to 40% higher, C1 cash costs per
pound3 are expected to be 20% to 22% higher and all-in sustaining
costs per pound3 are expected to be 26% to 28% higher. In addition
to lower sales from Lumwana due to the lower production described
above, Zaldívar also had higher input costs and higher sustaining
capital.
Barrick will provide additional discussion and
analysis regarding its full year and Q4 2022 production and sales
when the Company reports its quarterly and full year results before
North American markets open on February 15, 2023.
The following table includes preliminary gold and
copper production and sales results from Barrick's operations:
|
Three months endedDecember 31, 2022 |
Twelve months endedDecember 31, 2022 |
|
Production |
Sales |
Production |
Sales |
Gold (attributable ounces (000)) |
|
|
Carlin (61.5%) |
265 |
266 |
966 |
968 |
Cortez (61.5%) |
140 |
137 |
450 |
449 |
Turquoise Ridge (61.5%) |
78 |
74 |
282 |
278 |
Phoenix (61.5%) |
30 |
31 |
109 |
106 |
Long Canyon (61.5%) |
3 |
3 |
55 |
55 |
Nevada Gold Mines (61.5%) |
516 |
511 |
1,862 |
1,856 |
Loulo-Gounkoto (80%) |
139 |
141 |
547 |
548 |
Pueblo Viejo (60%) |
98 |
96 |
428 |
426 |
Kibali (45%) |
97 |
94 |
337 |
332 |
North Mara (84%) |
70 |
70 |
263 |
265 |
Tongon (89.7%) |
63 |
59 |
180 |
178 |
Veladero (50%) |
50 |
53 |
195 |
199 |
Bulyanhulu (84%) |
49 |
49 |
196 |
205 |
Hemlo |
38 |
38 |
133 |
132 |
Total Gold |
1,120 |
1,111 |
4,141 |
4,141 |
|
|
|
|
|
|
|
|
|
|
Copper (attributable pounds (millions)) |
|
|
Lumwana |
53 |
55 |
267 |
275 |
Zaldívar (50%) |
25 |
24 |
98 |
98 |
Jabal Sayid (50%) |
18 |
20 |
75 |
72 |
Total Copper |
96 |
99 |
440 |
445 |
Fourth Quarter and Full Year 2022 Results
Barrick will release its Q4 and full year 2022
results before market open on February 15, 2023. President and CEO
Mark Bristow will host a live presentation of the results that day
at 11:00 EST / 16:00 UTC, with an interactive webinar linked to a
conference call. Participants will be able to ask questions.
Go to the webinarUS and Canada (toll-free), 1 800 319 4610UK
(toll-free), 0808 101 2791International (toll), +1 416 915 3239
The Q4 and full year 2022 presentation materials
will be available on Barrick’s website at www.barrick.com.
The webinar will remain on the website for later
viewing, and the conference call will be available for replay by
telephone at 1 855 669 9658 (US and Canada toll-free) and +1 604
674 8052 (international toll), access code 9705.
Enquiries:
Claudia PitreManager, Investor Relations and
Corporate Access+1 416 307 5105cpitre@barrick.com
Kathy du Plessis Investor and Media Relations+44 20
7557 7738barrick@dpapr.com
Website: www.barrick.com
Technical Information
The scientific and technical information contained
in this news release has been reviewed and approved by: Craig
Fiddes, SME-RM, Manager - Resource Modeling, Nevada Gold Mines;
Chad Yuhasz, P.Geo, Mineral Resource Manager, Latin America and
Asia Pacific; and Richard Peattie, MPhil, FAusIMM, Mineral
Resources Manager: Africa & Middle East — each a “Qualified
Person” as defined in National Instrument 43-101 - Standards of
Disclosure for Mineral Projects.
Endnote 1
Porgera has been on temporary care and maintenance
since April 2020 and was not included in our full year 2022
guidance. On April 9, 2021, the Government of Papua New Guinea and
Barrick Niugini Limited, the operator of the Porgera joint venture,
signed a Framework Agreement in which they agreed on a partnership
for Porgera’s future ownership and operation. On February 3, 2022,
the Framework Agreement was replaced by the more detailed Porgera
Project Commencement Agreement (the “Commencement Agreement”). We
expect to update our guidance to include Porgera following both the
execution of definitive agreements to implement the binding
Commencement Agreement and the finalization of a timeline for the
resumption of full mine operations.
Endnote 2
Gold cost of sales per ounce is calculated as cost
of sales across our gold operations (excluding sites in care and
maintenance) divided by ounces sold (both on an attributable basis
based on 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 based on Barrick’s
ownership share).
References to attributable basis means our 100%
share of Hemlo and Lumwana, our 89.7% share of Tongon, our 84%
share of North Mara and Bulyanhulu, our 80% share of
Loulo-Gounkoto, our 61.5% share of Nevada Gold Mines, our 60% share
of Pueblo Viejo, our 50% share of Veladero, Zaldívar and Jabal
Sayid and our 45% share of Kibali.
Endnote 3
Total cash costs per ounce, all-in sustaining costs
per ounce and all-in costs per ounce are non-GAAP financial
measures which are calculated based on the definition published by
the World Gold Council ('WGC') (a market development organization
for the gold industry comprised of and funded by gold mining
companies from around the world, including Barrick). The WGC is not
a regulatory organization. Management uses these measures to
monitor the performance of our gold mining operations and its
ability to generate positive cash flow, both on an individual site
basis and an overall company basis.
Total cash costs start with our cost of sales
related to gold production and removes depreciation, the
non-controlling interest of cost of sales and includes by-product
credits. All-in sustaining costs start with total cash costs and
include sustaining capital expenditures, sustaining leases, general
and administrative costs, minesite exploration and evaluation costs
and reclamation cost accretion and amortization. These additional
costs reflect the expenditures made to maintain current production
levels.
We believe that our use of total cash costs, all-in
sustaining costs and all-in costs will assist analysts, investors
and other stakeholders of Barrick in understanding the costs
associated with producing gold, understanding the economics of gold
mining, assessing our operating performance and also our ability to
generate free cash flow from current operations and to generate
free cash flow on an overall company basis. Due to the
capital-intensive nature of the industry and the long useful lives
over which these items are depreciated, there can be a significant
timing difference between net earnings calculated in accordance
with IFRS and the amount of free cash flow that is being generated
by a mine and therefore we believe these measures are useful
non-GAAP operating metrics and supplement our IFRS disclosures.
These measures are not representative of all of our cash
expenditures as they do not include income tax payments, interest
costs or dividend payments. These measures do not include
depreciation or amortization.
Total cash costs per ounce, all-in sustaining costs
and all-in costs are intended to provide additional information
only and do not have standardized definitions under IFRS and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures are
not equivalent to net income or cash flow from operations as
determined under IFRS. Although the WGC has published a
standardized definition, other companies may calculate these
measures differently.
C1 cash costs per pound and all-in sustaining costs
per pound are non-GAAP financial measures related to our copper
mine operations. We believe that C1 cash costs per pound enables
investors to better understand the performance of our copper
operations in comparison to other copper producers who present
results on a similar basis. C1 cash costs per pound excludes
royalties and production taxes and non-routine charges as they are
not direct production costs. All-in sustaining costs per pound is
similar to the gold all-in sustaining costs metric and management
uses this to better evaluate the costs of copper production. We
believe this measure enables investors to better understand the
operating performance of our copper mines as this measure reflects
all of the sustaining expenditures incurred in order to produce
copper. All-in sustaining costs per pound includes C1 cash costs,
sustaining capital expenditures, sustaining leases, general and
administrative costs, minesite exploration and evaluation costs,
royalties and production taxes, reclamation cost accretion and
amortization and write-downs taken on inventory to net realizable
value.
Barrick will provide a full reconciliation of these
non-GAAP financial measures when the Company reports its quarterly
results on February 15, 2023.
Cautionary Statements Regarding Preliminary
Fourth Quarter and Full Year Production, Sales and Costs for 2022,
and Forward-Looking Information
Barrick cautions that, whether or not expressly
stated, all full year and fourth quarter figures contained in this
press release including, without limitation, production levels,
sales and associated costs are preliminary, and reflect our
expected full year and fourth quarter results as of the date of
this press release. Actual reported full year and fourth quarter
production levels, sales and associated costs are subject to
management’s final review, as well as review by the Company’s
independent accounting firm, and may vary significantly from those
expectations because of a number of factors, including, without
limitation, additional or revised information, and changes in
accounting standards or policies, or in how those standards are
applied. Barrick will provide additional discussion and analysis
and other important information about its full year and fourth
quarter production levels, sales and associated costs when it
reports actual results on February 15, 2023. For a complete picture
of the Company’s financial performance, it will be necessary to
review all of the information in the Company’s full year and fourth
quarter financial report and related MD&A. Accordingly, readers
are cautioned not to rely solely on the information contained
herein.
Finally, Barrick cautions that this press release
contains forward-looking statements with respect to: (i) Barrick’s
production; and (ii) costs per ounce for gold and per pound for
copper.
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 or unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements, and undue reliance
should not be placed on such statements and information.
Such factors include, but are not limited to:
fluctuations in the spot and forward price of gold, copper, or
certain other commodities (such as silver, diesel fuel, natural
gas, and electricity); the speculative nature of mineral
exploration and development; changes in mineral production
performance, exploitation, and exploration successes; the duration
of the temporary suspension of operations at Porgera and the
timeline for the execution of definitive agreements to implement
the Commencement Agreement, and recommence operations at Porgera;
risks associated with projects in the early stages of evaluation,
and for which additional engineering and other analysis is
required; disruption of supply routes which may cause delays in
construction and mining activities, including disruptions in the
supply of key mining inputs due to the invasion of Ukraine by
Russia; whether benefits expected from recent transactions are
realized; diminishing quantities or grades of reserves; increased
costs, delays, suspensions and technical challenges associated with
the construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; failure to comply with environmental and health
and safety laws and regulations; timing of receipt of, or failure
to comply with, necessary permits and approvals; non-renewal of key
licenses by governmental authorities; uncertainty whether some or
all of targeted investments and projects will meet the Company’s
capital allocation objectives and internal hurdle rate; the impact
of 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; 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; fluctuations in
the currency markets; changes in national and local government
legislation, taxation, controls or regulations and/ or changes in
the administration of laws, policies and practices, expropriation
or nationalization of property and political or economic
developments in Canada, the United States, and other jurisdictions
in which the Company or its affiliates do or may carry on business
in the future; lack of certainty with respect to foreign legal
systems, corruption and other factors that are inconsistent with
the rule of law; damage to the Company’s reputation due to the
actual or perceived occurrence of any number of events, including
negative publicity with respect to the Company’s handling of
environmental matters or dealings with community groups, whether
true or not; the possibility that future exploration results will
not be consistent with the Company’s expectations; risks that
exploration data may be incomplete and considerable additional work
may be required to complete further evaluation, including but not
limited to drilling, engineering and socioeconomic studies and
investment; risk of loss due to acts of war, terrorism, sabotage
and civil disturbances; risks associated with illegal and artisanal
mining; risks associated with new diseases, epidemics and
pandemics, including the effects of the global Covid-19 pandemic;
litigation and legal and administrative proceedings; contests over
title to properties, particularly title to undeveloped properties,
or over access to water, power and other required infrastructure;
business opportunities that may be presented to, or pursued by, the
Company; our ability to successfully integrate acquisitions or
complete divestitures; risks associated with working with partners
in jointly controlled assets; employee relations including loss of
key employees; increased costs and physical risks, including
extreme weather events and resource shortages, related to climate
change; and availability and increased costs associated with mining
inputs and labor. Barrick also cautions that its guidance may be
impacted by the ongoing business and social disruption caused by
the spread of Covid-19. In addition, there are risks and hazards
associated with the business of mineral exploration, development
and mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and
gold bullion, copper cathode or gold or copper concentrate losses
(and the risk of inadequate insurance, or inability to obtain
insurance, to cover these risks).
Many of these uncertainties and contingencies can
affect our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
Barrick disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
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