Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) – The past year
marked a major milestone in Barrick’s journey to becoming the
world’s most valued gold and copper mining company, with the
foundational targets of the new business created by the Merger1
having largely been met, and its greater goals now within reach,
says president and chief executive Mark Bristow with the
publication of the company’s
2022 annual report
today.
“North America is Barrick’s value foundation and
the true benefits of our creation of the Nevada Gold Mines complex
are now becoming evident in the form of mineral resource growth and
new discoveries. The quality and prospectivity of
its portfolio cannot be overstated,” he said.
“In Central America the plant expansion project
we initiated at the Pueblo Viejo gold mine in the Dominican
Republic is rapidly taking shape. With its unlocked reserve base
now standing at 20 million ounces2, the life of the mine — one of
the six Tier One3 assets in our gold portfolio — has been extended
beyond 2040 and it will maintain an average annual production rate
above 800,000 ounces over that time4.
“Another of our Tier One assets, the
Loulo-Gounkoto complex in Mali, which has produced more than 9
million ounces of gold since 2005, is set to maintain its current
rate of production for the next 10 years, with its life extending
to 20375.”
Bristow said Barrick was also achieving its
strategic objective of significantly expanding its copper holdings.
Work on the reconstituted Reko Diq project in Pakistan — one of the
largest and highest quality undeveloped copper-gold deposits in the
world — has started, and the revitalized Lumwana mine in Zambia has
commenced a pre-feasibility study on the Super Pit expansion. When
both these projects are completed in 2028 they will elevate Barrick
into the front rank of copper producers.
“Brownfields exploration continues to unlock
potential around our existing assets while greenfields work has
started delivering real value. We’re continuing to expand our
global exploration footprint with active programs elsewhere in
North America as well as in Latin America, Saudi Arabia and Egypt,”
he said.
“One of the highlights of last year was the
continued growth in our gold reserves and resources, driven by our
strategy of investing in organic growth through exploration and
mineral resource management. Barrick’s ability over time to more
than replace the ounces we mine reinforces our sustainability and
our sector-leading production profile.”
Demonstrating its commitment to strong
shareholder returns, Barrick returned a record $1.6 billion6 to
shareholders last year but this was not at the expense of its
growth strategy, Bristow said.
“We continue to invest in and roll out our
10-year gold and copper plans, projecting real growth on a steady
base-case production profile. This investment is made possible by
the unmatched quality of our assets and the abundant free cash flow
they generate. Also embedded in our portfolio is a long pipeline of
quality projects from which we are steadily unlocking value. The
ability to grow without having to buy is a very significant
advantage that differentiates Barrick from its peers,” he said.
Bristow said in line with Barrick’s commitment
to a “best people” workforce it was aggressively recruiting
promising young professionals across all the relevant disciplines.
The next generation of leaders is already taking shape in the
company’s succession plans and last year already saw seamless
transitions in a number of key positions.
It is also rapidly progressing the greening of
its power grid across the group. Major solar projects in the
Dominican Republic and Nevada, the expansion of the solar power and
battery energy storage system at Loulo-Gounkoto and the planned
solar power dry season back-up for Kibali’s three hydropower plants
will not only significantly advance Barrick towards its 2050 net
zero target but will improve the mines’ margins by pruning energy
costs.
“Sustainability is fundamental to Barrick’s
business. We believe that climate risks, poverty and diversity loss
are inextricably linked and should be managed holistically. This
approach is based on our commitment to supporting the
socio-economic development of our host countries and communities.
Last year alone we invested $35 million in community development
projects,” he said.
Also in the annual report, executive chairman
John Thornton noted the significant contribution Barrick’s
operations make in the developing countries in which it
operates.
“Mining can and should be a key catalyst for
economic growth and social upliftment. Barrick’s substantial
contribution to our host countries’ coffers and our equally
significant investment in the welfare of the communities that
border on our mines is making a real difference, highlighting the
important part the mining industry can play in narrowing the gap
between the richer and poorer nations to make the world a better
place,” he said.
Barrick’s 2022 Annual Report, Annual Information
Form and Form 40-F are now available on SEDAR (www.sedar.com) and
EDGAR (www.sec.gov), respectively. Updated National Instrument
43-101 technical reports for each of the Loulo-Gounkoto Gold Mine
Complex and the Pueblo Viejo Mine, current as of December 31, 2022,
are also available on SEDAR and EDGAR.
To access the above-mentioned documents, please
visit www.barrick.com. Shareholders may also receive a copy of
Barrick’s audited financial statements without charge upon request
to Barrick’s Investor Relations Department, 161 Bay Street, Suite
3700, Toronto, Ontario, M5J 2S1 or to investor@barrick.com.
Enquiries
President and CEOMark Bristow+1 647 205 7694+44 788 071 1386 |
Senior EVP and CFO Graham Shuttleworth+1 647 262 2095+44 779 771
1338 |
Investor and Media RelationsKathy du Plessis+44 20 7557 7738Email:
barrick@dpapr.com |
Website: www.barrick.com
Endnotes
- The merger of
Barrick and Randgold completed on January 1, 2019.
- On a 100% basis.
Estimated in accordance with National Instrument 43-101 - Standards
of Disclosure for Mineral Projects as required by Canadian
securities regulatory authorities. Estimates are as of December 31,
2022, unless otherwise noted. Proven mineral reserves of 59 million
tonnes grading 2.29g/t, representing 4.3 million ounces of gold.
Probable mineral reserves of 230 million tonnes grading 2.16g/t,
representing 16 million ounces of gold. Refer to the Technical
Report on the Pueblo Viejo Mine, Dominican Republic, dated March
17, 2023 and filed on SEDAR at www.sedar.com and EDGAR at
www.sec.gov on March 17, 2023. Complete attributable mineral
reserve and mineral resource data for all mines and projects
referenced in this press release, including tonnes, grades, and
ounces, can be found in the Mineral Reserves and Mineral Resources
Tables provided on pages 37 to 46 of Barrick’s 2022 Annual
Information Form and Form 40-F filed on SEDAR at www.sedar.com and
on EDGAR at www.sec.gov.
- 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 that are in the
lower half of the industry cost curve.
- On a 100% basis.
Refer to the Technical Report on the Pueblo Viejo Mine, Dominican
Republic, dated March 17, 2023 and filed on SEDAR at www.sedar.com
and EDGAR at www.sec.gov on March 17, 2023.
- On a 100% basis.
Refer to the Technical Report on the Loulo-Gounkoto Gold Mine
Complex, Mali, dated March 17, 2023 and filed on SEDAR at
www.sedar.com and EDGAR at www.sec.gov on March 17, 2023.
- Through dividends and share
buybacks.
Technical
Information
The scientific and technical information
contained in this press release has been reviewed and approved by
Craig Fiddes – SME-RM, Lead– Resource Modeling, Nevada Gold Mines;
Chad Yuhasz, P.Geo, Mineral Resource Manager, Latin America &
Asia Pacific; Richard Peattie, MPhil, FAusIMM, Mineral Resources
Manager: Africa and Middle East; Simon Bottoms, CGeol, MGeol, FGS,
FAusIMM, Mineral Resource Management and Evaluation Executive; and
John Steele, CIM, Metallurgy, Engineering and Capital, each a
“Qualified Person” as defined in National Instrument 43-101
– Standards of Disclosure for Mineral Projects.
All mineral reserve and mineral resource
estimates are estimated in accordance with National Instrument
43-101 – Standards of Disclosure for Mineral Projects. Unless
otherwise noted, such mineral reserve and mineral resource
estimates are as of December 31, 2022.
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 “high-potential”, “grow”,
“maintain”, “expand”, “invest”, “unlock”, “continue”, “will”,
“commitment”, “unlock value”, “target”, “contribution”, “catalyst”,
“believe” and similar expressions identify forward-looking
statements. In particular, this press release contains
forward-looking statements including, without limitation, with
respect to: Barrick’s strategy to invest in our 10-year gold and
copper plans and growth projects while funding exploration
initiatives to expand its presence in new prospective areas
including in North America, Latin America, Saudi Arabia and Egypt;
Barrick’s global exploration strategy and planned exploration
activities; our ability to convert resources into reserves and
future reserve replacement; the anticipated benefits of the Pueblo
Viejo plant expansion and mine life extension project including the
construction of the new Naranjo tailings storage facility; the
potential for the Reko Diq project and proposed Super Pit expansion
at Lumwana to significantly expand Barrick’s copper holdings;
Barrick’s focus on socioeconomic development in its host countries
in line with its sustainability vision; Barrick’s solar projects
and greenhouse gas emissions reduction targets; Barrick’s
initiatives to increase workforce diversity in line with its
sustainability strategy to create value for all stakeholders;
Barrick’s future plans, growth potential, financial strength,
investments and overall strategy; and expectations regarding future
price assumptions, financial performance, shareholder returns 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; 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; 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; approval of the final
location of the additional TSF for Pueblo Viejo following
submission of the ESIA in the Dominican Republic, non-renewal of
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; 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, including
disruptions in the supply of key mining inputs due to the invasion
of Ukraine by Russia; 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 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 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;
employee relations including loss of key employees; availability
and increased costs associated with mining inputs and labor; and
risks associated with diseases, epidemics and pandemics, including
the effects and potential effects of the global Covid-19 pandemic.
Barrick also cautions that its 2023 guidance may be impacted by the
ongoing business and social disruption caused by the spread of
Covid-19.
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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