Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today announced a
$0.20 per share quarterly dividend, the first to include a $0.10
per share performance component in line with its new dividend
policy.
President and chief executive Mark Bristow said the Company’s
net cash balance at the end of Q1 stood at $743 million, reflecting
cash flow from the operations, the continuing sale of non-core
assets, and its share of a further $0.6 billion in cash
distributions by Kibali.
Since agreement on the repatriation of revenue from Kibali was
reached with the Democratic Republic of Congo (DRC) last year,
Kibali has delivered $1.2 billion (on a 100% basis) in the form of
dividends and debt repayments, inclusive of distributions received
subsequent to March 31, 2022.
Bristow said as guided earlier, Q1 was a softer quarter,
particularly when compared to Q4 of 2021, which included a
record-breaking performance from Nevada Gold Mines. With a stronger
performance expected in the second half of the year, Barrick
remains on track to meet its 2022 production guidance.
Highlights of the quarter included the framework
agreement with Pakistan on restarting the Reko-Diq copper-gold
project. Bristow is scheduled to meet the country’s new prime
minister later this month to review progress.
Also significant was the progress made in
securing a new tailings storage facility for the Pueblo Viejo
project in the Dominican Republic. The project is designed to
unlock approximately 9 million ounces of measured and indicated
resources and convert them into additional proven and probable
reserves, extending the mine’s life by more than 20 years.13
“Barrick controls what are unquestionably the
mining industry’s best gold assets as well as some substantial
copper mines. Reko Diq is one of the largest undeveloped
copper-gold porphyry deposits in the world, and if the conditions
to closing are satisfied, it will be a very significant addition to
this portfolio, even before it goes into production, by boosting
reserves and resources as the updated feasibility study unfolds,”
Bristow said.
“In addition to its size and quality, Barrick’s
asset base is distinguished by our continued success in more than
replacing the reserves depleted by mining through brownfields
exploration. At the same time, we continue to hunt for new Tier One
assets across our expanding global footprint. The past quarter
again produced promising results from all regions, with significant
new potential identified in Nevada, Argentina and Africa’s Loulo
district.”
Bristow said the Company’s latest annual
Sustainability Report highlights its integrated approach to ESG,
based on its belief that the challenges of poverty, climate change
and biodiversity are intertwined and should be addressed
holistically. The report notes that last year Barrick spent $5.5
billion with host country suppliers, equating to 81% of its global
procurement expenditure. Host country nationals accounted for 96%
of its total workforce and 78% of its management, and the drive to
employ more women is succeeding.
Some $850 million has been spent on or budgeted
for renewable energy and greenhouse gas (GHG) emissions reduction
projects. These are outlined in the report in an updated GHG
emissions reduction roadmap leading to a Net Zero target by 2050.
Barrick, for the first time, has disclosed its Scope 3 emissions
and Scope 3 roadmap to engage and assist its suppliers with their
GHG emissions reductions.
“Sustainability has long been an integral part
of the way Barrick does business and our commitment to its
effective management is key to our goal of building the world’s
most valued gold and copper mining company,” Bristow said.
Key Performance Indicators
Financial and Operating Highlights
Financial Results |
Q1 2022 |
Q4 2021 |
Q1 2021 |
Realized gold
price4
($ per ounce) |
1,876 |
1,793 |
1,777 |
Net earnings
($ millions) |
438 |
726 |
538 |
Adjusted net earnings3
($ millions) |
463 |
626 |
507 |
Net cash provided by operating
activities ($ millions) |
1,004 |
1,387 |
1,302 |
Free cash
flow1
($ millions) |
393 |
718 |
763 |
Net earnings per share
($) |
0.25 |
0.41 |
0.30 |
Adjusted net earnings per
share3 ($) |
0.26 |
0.35 |
0.29 |
Attributable capital expenditures5,6 ($ millions) |
478 |
552 |
424 |
Operating Results |
Q1 2022 |
Q4 2021 |
Q1 2021 |
Gold |
|
|
|
Production7
(000s of ounces) |
990 |
1,203 |
1,101 |
Cost of sales (Barrick's
share)7,8 ($ per ounce) |
1,190 |
1,075 |
1,073 |
Total cash
costs7,9
($ per ounce) |
832 |
715 |
716 |
All-in
sustaining
costs7,9
($ per ounce) |
1,164 |
971 |
1,018 |
Copper |
|
|
|
Production6
(millions of pounds) |
101 |
126 |
93 |
Cost of sales (Barrick's
share)7,8
($ per pound) |
2.21 |
2.21 |
2.11 |
C1 cash
costs7,10
($ per pound) |
1.81 |
1.63 |
1.60 |
All-in
sustaining
costs7,10
($ per pound) |
2.85 |
2.92 |
2.26 |
Best Assets
- First quarter puts Barrick on track to achieve 2022
production targets
- Strong performance from Loulo-Gounkoto on the
back of solid throughput, recovery and grade
- Pueblo Viejo new Tailings Storage Facility permitting
makes significant progress
- Reko Diq framework agreement signed with
Pakistan paving the way for the next potential Tier One11 asset
development
- New senior appointments strengthen management
team as it expands globally
- Exciting exploration results in all regions
with significant new potential highlighted in Nevada, Argentina,
and the Loulo District
Leader in Sustainability
- 2021 Sustainability Report published
highlighting our integrated approach to ESG
- 33% decrease in LTIFR12 quarter on
quarter
- Updated GHG Reduction Roadmap
outlining our journey to Net Zero by 2050
- Funding the reintroduction of white rhinos to
the Garamba National Park in the DRC
Delivering Value
- Operating cash flow of $1,004 million and free cash
flow1 of $393 million
for the quarter
- Net earnings per share of $0.25 and adjusted net
earnings per share3 of
$0.26 for the quarter
- Kibali distributes a further $0.6 billion in
cash during the quarter (100% basis)
- Net cash2 of $743 million results in a $0.20 per
share dividend for Q1 2022, inclusive of a $0.10 per share
performance dividend14
Q1 2022 Results
PresentationWebinar and Conference
CallPresident 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 webinarUS
and Canada (toll-free), 1 800 319 4610UK (toll-free), 0808 101
2791International (toll), +1 416 915 3239
The Q1 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.
NEW PERFORMANCE DIVIDEND POLICY DOUBLES BARRICK’S
QUARTERLY DIVIDEND
Barrick today announced the declaration of a dividend in
respect of performance for the first quarter of 2022 that
incorporates an enhancement to the base dividend as a result of
achieving Level III under the Company’s Performance Dividend
Policy.
Barrick’s Board of Directors declared a dividend
of $0.20 per share for the first quarter of 2022 that will be paid
on June 15, 2022 to shareholders of record at the close of business
on May 27, 2022.14 This dividend comprises a base quarterly
dividend of $0.10 per share and a performance dividend enhancement
of an additional $0.10 per share.
“Our strong operating performance and robust net
cash balance has allowed us to provide an enhanced dividend to our
shareholders,” says senior executive vice-president and chief
financial officer Graham Shuttleworth. “We believe this shows the
benefit of the Performance Dividend Policy that we announced in
February, including the guidance it provides to our shareholders on
future dividend streams.”
The $0.10 per share enhancement to the base
quarterly dividend was achieved as a result of Barrick reporting
net cash on its Consolidated Balance Sheet at March 31, 2022 of
greater than $0.5 billion and less than $1 billion as per the
following schedule:
Performance Dividend Level |
Threshold Level |
Quarterly Base Dividend |
Quarterly Performance Dividend |
Quarterly Total Dividend |
Level I |
Net cash <$0 |
$0.10 per share |
$0.00 per share |
$0.10 per share |
Level II |
Net cash >$0 and <$0.5B |
$0.10 per share |
$0.05 per share |
$0.15 per share |
Level III |
Net cash >$0.5B and <$1B |
$0.10 per share |
$0.10 per share |
$0.20 per share |
Level IV |
Net cash >$1B |
$0.10 per share |
$0.15 per share |
$0.25 per share |
STRATEGY SECURES BARRICK’S ABILITY TO SUCCEED AMID
GLOBAL GEOPOLITICAL DYNAMICS AND IN CHALLENGING
JURISDICTIONS
While Barrick’s core strategy — the
creation and delivery of real, sustainable value to its
stakeholders — is fixed, the actions needed to secure its
consistent execution are subject to a rigorous review
process.
This starts at the beginning of each year with a
week-long strategic planning and team effectiveness review for the
group’s top executives, led by president and chief executive Mark
Bristow. Risks and opportunities are carefully assessed, and the
outputs needed to manage them effectively are identified. These
outputs are then rolled out through similar planning sessions at
all operational and corporate sites, ensuring a group-wide
alignment with the agreed objectives and actions.
This year’s group strategy session took
particular note of the importance of risk management in a global
environment which, says Bristow, is probably in greater political,
social and economic disarray than any previous period since World
War II.
“We’re still dealing with the fall-out of the
Covid-19 pandemic, inflation in developed countries is rising to
levels not experienced in a generation and in Eastern Europe a
major war, the like of which we never expected to see again, is
ongoing, with huge personal cost and potentially devastating
economic consequences for the major countries dependent on Russian
oil and gas,” says Bristow.
“Fortunately for Barrick, managing risks in
challenging geo-political jurisdictions is one of our core
competencies, largely gained in Africa, where our mines have
continued to operate steadily and profitably through civil wars,
coups d’état, complex logistics and delicate negotiations with host
governments,” he says.
“It’s our partnership philosophy that has
enabled us to achieve this. Mining is a long-term business and we
therefore need the ability to benefit our host countries for the
length of our investment and beyond. We secure this essential
social licence to operate by demonstrating that the value we create
is equitably shared with our local stakeholders and that we are a
major contributor to the state’s coffers — in short, a welcome and
responsible citizen and neighbour.”
Bristow says with mature mining regions offering
fewer opportunities for major discoveries, new Tier One assets will
inevitably have to be sought in developing countries, where Barrick
is already operating successfully.
“Our decision to proceed with the reconstitution
of the Reko Diq project in Pakistan, a Tier One copper and gold
asset in the making by any measure, is based on this track record
and on our confidence in our ability to deliver yet another
world-class mine in a remote region. Our drive to expand our
Asia-Pacific presence and grow our copper portfolio also sit firmly
within this strategy,” he says.
INVESTING IN THE BEST PEOPLE FOR THE BEST
FUTURE
“Getting the optimal results from the
industry’s best assets requires people who not only possess skills
and drive but are also sufficiently diverse in terms of race, age
and gender to lead Barrick into the new world,” explains the Group
Human Resources executive, Darian Rich.
Thanks to Barrick’s long-established policy of
recruiting host country nationals, 96% of its workforce and 78% of
its managers are local hires. Its drive for gender diversity in a
traditionally male-dominated industry has also started producing
results, with women accounting for 24% of new hires during the past
quarter and 11% of Barrick’s global workforce.
Similarly, the employee age shift continues and
56% of the workforce are now under the age of 40 and 16% under the
age of 30. In the past quarter, 38% of new hires were younger than
30.
Last quarter, the North America region
participated in 36 recruiting events at schools and universities
while Latin America’s internship programs cater for graduates as
well as workers, with Veladero currently training 20 female truck
drivers. In Africa and the Middle East, competency-based training
programs continue to upskill workers.
Preparing the group’s future generation of
leaders requires deep succession planning, reflected in a number of
key recent changes. With Willem Jacobs retiring in June 2022, the
region’s chief financial officer, Sebastiaan Bock, is stepping up
as chief operating officer for Africa and the Middle East. Greg
Walker is being succeeded as executive managing director of Nevada
Gold Mines at the end of 2022 and, in the corporate office, Poupak
Bahamin has been appointed general counsel while Rich Haddock
transitions to a legal advisor role. Rich will remain a valuable
resource through March 2024 to provide continuity of support for
Reko Diq and other projects.
MANAGING COSTS AMID HIGH INFLATION AND GEOPOLITICAL
CONFLICT
Rising inflation, exacerbated by the
conflict between Russia and Ukraine and the sanctions imposed on
Russia, has had a direct impact on Barrick’s business in terms not
only of fuel and gas prices but also the cost and availability of
input commodities.
To mitigate inflation and manage supply risks,
Barrick is employing a proven multi-pronged strategy, says group
commercial and supply chain executive Riaan Grobler.
“Our procurement strategy is built on a thorough
understanding of our key cost drivers, commodities and services.
The recent groupwide roll-out of SAP has improved the visibility of
these factors and allowed real-time decision-making. At the same
time, we are identifying technical levers that could drive internal
efficiencies,” he says.
“Secondly, we have built strong collaborative
relationships with leading global supply chain partners, with a
dedicated freight forwarding capacity that spans five continents.
They pool their buying power to ensure that we have fixed-price
agreements with key suppliers. A big part of the cost of logistics
is in the efficiency of the movement of goods from port to
destination and we leverage global logistics through our
partnership structures to do cross-continent bookings of charters
and to consolidate freight from multiple ports.”
Barrick is also cultivating alternative
suppliers, particularly in developing countries, as back-up to its
main supply chain partners and as a cost-base benchmark. Its
long-standing policy of local procurement in host countries, which
now stands at 65% of its global procurement, is serving Barrick
well as a hedge against inflation, particularly in terms of the
cost of logistics, tariffs and inventory.
To manage price and supply volatility, Barrick
has built up a strategic inventory of key commodities and Barrick
optimizes this inventory and its cost through improved demand and
maintenance planning. Where possible it also leverages new projects
to renegotiate supply contracts. The proposed 200MW solar power
project in Nevada, for example, has allowed Barrick to reduce the
costs of the existing energy supplier for Nevada Gold Mines.
TRUE PARTNERSHIP WILL DELIVER REKO DIQ
PROJECT
The groundbreaking partnership agreement
between Barrick, the federal government of Pakistan and the
provincial government of Balochistan should unlock the enormous
value of Reko Diq, one of the world’s largest undeveloped copper
and gold deposits, says president and chief executive Mark
Bristow.
Speaking on a recent investor call, Bristow said
the project represented a unique mining opportunity, which would be
a major addition to Barrick’s Tier One asset base, while also
bringing significant economic and social benefits to Pakistan and
Balochistan.
The agreement in principle recently reached
between the parties provides for the reconstitution and restart of
the project, which has been on hold since 2011. It will be operated
and owned 50% by Barrick, 25% by Pakistani state-owned enterprises
and 25% by the government of Balochistan. The Company has similar
partnerships in other countries which have proved to be catalysts
in developing local economies.
Bristow said that, following the finalization of
the underlying agreements, legalization and closing, Barrick would
update the 2010 feasibility study.
“Reko Diq’s fundamentals have not changed
materially since then. Subject to the updated feasibility study, it
is still envisaged as a conventional open pit and milling operation
producing a high-quality copper-gold concentrate. We are planning a
two-phase construction approach, starting with an approximately 40
million tonne per annum plant, which could be doubled within five
years. The staged development will optimize returns, manage upfront
capital, lower execution risk and bring forward production and cash
flows in the long run. If all goes according to plan, we anticipate
first production in five to six years’ time,” he said.
“Offering a 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. The contemplated mine plan
is based on four porphyry deposits within our land package and our
exploration licence area holds additional deposits with future
upside potential.”
Noting that since 2010 there had been
game-changing technological advances in renewable energy
alternatives, some of which are particularly well-suited to the
area, Bristow said a Barrick team was already assessing various
solar, wind and battery configurations to maximize the mine’s
renewable power generation. This could also deliver a range of
economic and operational benefits.
The development of Reko Diq will make
Balochistan the largest recipient of foreign investment in
Pakistan. During peak construction periods, the project is expected
to employ 7,500 people and once in production will create about
4,000 long-term jobs. Barrick’s policy of prioritizing local
employment and suppliers will have a positive downstream impact on
the local economy.
“At Barrick we know that our long-term success
depends on sharing the benefits we create equitably with our host
governments and communities. That’s why we wanted Balochistan’s
share of the venture to be fully funded, 10% by the project and 15%
by the government of Pakistan. It’s equally important to us that
Balochistan and its people should see the benefits from day one.
Even before construction begins, we will be implementing a range of
social development programs, supported by upfront commitments to
the development of the skills required for mining, the improvement
of education, healthcare, food security and, importantly, access to
potable water in a region where the groundwater has a high saline
content,” Bristow said.
KIBALI POWERS AHEAD WHILE BARRICK PLANS FURTHER
INVESTMENTS IN DRC
Africa’s largest gold mine, Kibali in the DRC, has made
a strong start to 2022 and is on track to equal its 2021 production
this year. Last year it again replaced the reserves depleted by
mining and its prolific KZ trend of orebodies continues to deliver
opportunities for significant open pit and underground
growth.
Speaking to media and other stakeholders in
Kinshasa, Barrick president and chief executive Mark Bristow said
Kibali had notched up a number of other key deliverables during the
current quarter. These include the signing of a cahier de charge
with the surrounding communities to formalize their role in
identifying and overseeing the mine’s investment in social
development projects.
Another section of the Durba road to Watsa has
been completed and the resettlement of the Kalimva-Ikamva and Pamao
villages has started with the first group of people moving into
their new homes. On the health and safety front, there were zero
lost time injuries during the quarter, the malaria and HIV programs
continued to deliver infection rate reductions and 60% of our
employees have been vaccinated against Covid-19, versus a national
average of 1%.
In addition to Kibali’s long-standing support
for conservation measures in one of DRC’s leading national parks,
African Parks and Barrick are looking to reintroduce the white
rhino to the Garamba National Park. In what will be the largest
exercise of its kind, the plan envisages the relocation of around
50 white rhinos to Garamba creating a new population group which is
critical in the long-term plan to protect this species. In line
with Barrick’s development strategy, the mine also launched the
Garamba Alliance in partnership with the US Agency for
International Development (USAID).
Since the project that became Kibali was
acquired in 2009, its probable mineral reserves were doubled to
more than 10 million ounces15 of gold in 2010. Construction then
started the following year, three hydropower plants were built and
the infrastructure — including the road to the Ugandan border — was
developed. The mine went into production in 2013 and still today
has more than 10 years of mine life ahead, with 2021 total proven
and probable mineral reserves of 83Mt at 3.60g/t for 9.6Moz16 of
gold, before considering extensions to known orebodies and new
discoveries. Since 2009, Kibali has invested almost $4 billion in
the DRC in the form of royalties, taxes and permits; infrastructure
and community development; salaries; and payments to local
suppliers and contractors, which have created a thriving regional
economy.
“Barrick is continuing to invest in the DRC, not
only by developing the many new growth opportunities which are
extending Kibali’s life, but also through pursuing greenfields
exploration and other opportunities across the country as we search
for our next world-class discovery,” Bristow said.
HOLISTIC APPROACH TO ESG WILL MAKE LASTING
IMPACT
Barrick has an integrated approach to sustainability to
address each of the Environmental, Social and Governance (ESG)
components concurrently, says group sustainability executive Grant
Beringer in the Company’s 2021 Sustainability
Report.
“The challenges of fighting poverty, climate
change and biodiversity loss are deeply connected, and we have no
option but to tackle them together through a holistic and
integrated approach to sustainability management, if we are to make
a lasting, positive impact on any of them,” he says.
“While excellent management of environmental
aspects is critical for sustainable delivery, this only focuses on
one side of the issue. That is why this report has a strong focus
on the ‘silent S’ in ESG, demonstrating that responsible mining is
an enormous lever for delivering social upliftment and
development.”
Barrick achieved a ‘B’ grade for a third
consecutive year in its industry-first Sustainability Scorecard and
recorded significant improvements across most of its key metrics.
Highlights for the year include the certification of all
operational sites to the ISO 45001 and ISO 14001 standards and the
procurement of goods and services worth $1.67 billion from local
suppliers close to Barrick’s operations. In total, $5.5 billion was
spent on host country suppliers, equating to 81% of Barrick’s
global procurement spend. Further details of Barrick’s economic
value contribution, including taxes paid, is included in its
standalone Tax Contribution Report for 2021. Host country nationals
now comprise 96% of its workforce and the group maintained its
downward trend in the Total Recordable Injury Frequency Rate.17
Additionally, approximately $850 million has
been spent or budgeted for renewable energy and GHG emissions
reduction projects, all of which meet the Company’s required 15%
internal rate of return. The report also contains an updated GHG
Reduction Roadmap, outlining the projects that decrease emissions
against Barrick’s 2018 baseline by at least 30% by 2030, while
maintaining a steady production profile, as well as its course to
be Net-Zero by 2050. It also details Barrick’s first-ever
disclosure of its Scope 3 emissions and Scope 3 roadmap to engaging
and assisting its suppliers with their GHG emissions reduction.
Barrick’s water efficiency rate, a measure of the amount of water
it reuses and recycles, was 82% for 2021.
Meanwhile, its new Biodiversity Standard,
focused on driving positive biodiversity outcomes in critically
important areas, has resulted in a significant increase in key
species populations in the Garamba National Park in the Democratic
Republic of Congo near its Kibali mine. Barrick, through its
partnership with African Parks and the Congolese Institute for the
Conservation of Nature (ICCN), is also the sole sponsor to
reintroduce white rhino to the park in 2022.
“Conserving biodiversity is fundamental to
planetary survival, essential to tackling climate change and has an
important role to play in the war on poverty. We strive not only to
preserve and maintain biodiversity within our permits but to
partner with NGOs and other organizations, to protect and restore
critical biodiversity in some of the world’s most ecologically
sensitive places,” says Beringer.
The latest report is now aligned to the
Sustainability Accounting Standards Board’s (SASB) reporting
requirements for metals and mining and continues to conform to the
Global Reporting Initiative’s ‘GRI Standards: Core option’ as well
as the Task Force on Climate-related Financial Disclosures (TCFD)
framework.
FUNDING THE RE-INTRODUCTION OF WHITE RHINOS TO THE
GARAMBA NATIONAL PARK IN THE DRC
Measurable conservation action focused on threatened
species abatement and restoration
Barrick wants to restore the white rhino
population at the Garamba National Park in the DRC and has
partnered with African Parks and the Congolese Institute for the
Conservation of Nature (ICCN) to fund the transfer of at least 50
rhinos from South Africa in 2022.
The Garamba National Park, located 70km north of
the Kibali mine in the north-east of the DRC, covers an area
greater than 5,000km2 and is adjacent to four contiguous reserves
with an additional 10,000km2. It is one of Africa’s oldest national
parks and a UNESCO World Heritage Site. The park has been placed on
the list of World Heritage Sites in danger, following years of
armed conflict, civil wars and poaching that has resulted in steep
declines in its wildlife populations.
Barrick has provided support to the park since
2015, with a view to protecting and restoring its biodiversity and
resulting in a notable improvement in the herd size of the
endangered Kordofan giraffe, which has grown from 22 individuals in
2012 to 65 last year. Similarly, buffalo populations have also
steadily grown with average herd sizes ranging from 20 to nearly
500 individuals. Furthermore, there has not been an instance of
elephant poaching since September 2020.
UPDATED GHG ROADMAP OUTLINES JOURNEY TO
2050
Sun to help power journey to Net Zero
Solar power will account for approximately a
third of the total reduction in the GHG emissions that Barrick
plans to achieve by 2030, according to the latest GHG Reduction
Roadmap published in its 2021 Sustainability Report.
Barrick’s GHG Reduction Roadmap outlines the
renewable energy projects that are contributing to or have the
potential to help meet its target of reducing total emissions by
30% by 2030 as well as its course to be Net Zero by 2050. Solar
power is expected to account for 681kt of the 2,262kt Barrick needs
to reduce its total annual GHG emissions to 5,279kt CO2e by 2030
against a 2018 baseline of 7,541kt CO2e.
In addition to the 20MW solar power plant at
Loulo (27kt estimated reduction of CO2e per year) completed in
2020, work has begun on an estimated $262 million 200MW solar
facility with battery storage in Nevada. The facility is expected
to satisfy approximately 15% of Nevada Gold Mines’ (NGM) total
electricity requirements and should reduce Barrick’s GHG emissions
by 254kt per year, which is equivalent to taking almost 34,000 cars
off the road.
Other projects being investigated include
expansions to the solar plants at Loulo (54kt estimated reduction
of CO2e) and Nevada (254kt CO2e), as well as additional solar
installations at Jabal Sayid (11kt estimated reduction of CO2e),
Kibali (12kt estimated reduction of CO2e) and Pueblo Viejo (69kt
estimated reduction of CO2e). Approximately $850 million has been
spent or budgeted for renewable energy and GHG emissions reduction
projects, all of which meet the Company’s required 15% internal
rate of return.
PUEBLO VIEJO MOVES FORWARD WITH LIFE OF
MINE EXTENSION PROJECT
The Dominican Government has completed
its strategic review of the location of the new Tailings Storage
Facility (TSF) for the Pueblo Viejo mine in the Dominican Republic.
The new TSF forms part of the expansion project that is designed to
extend the Tier One mine’s life to beyond 2040 and support annual
production in excess of 800,000
ounces.13
The government, through their process, have
identified a select number of alternatives for further assessment.
At the same time, Barrick conducted its own alternatives
assessment, completed by a multidisciplinary team of external
subject matter experts from various independent consulting
companies.
Several sites were initially identified and
after various screening phases, which considered environmental,
social, and technical factors, potentially feasible sites were
identified for further evaluation. The two separate assessments
independently identified four alternative sites, of which two
sites, located in the Sanchez Ramirez Province, would be put
forward for further investigation.
Barrick president and chief executive Mark
Bristow said that although these alternative sites existed as
determined by the reviews, the final location and construction of
the facility would be subject to the completion of an Environmental
and Social Impact Assessment (ESIA) in accordance with Dominican
Republic legislation and international standards. Once completed,
the ESIA would be submitted to the government for evaluation and
final decision.
The ESIA will identify and implement mechanisms
to mitigate potential environmental impacts as well as initiatives
to improve the livelihoods of the communities. Barrick is committed
to following international standards and will adhere to the Global
Industry Standard on Tailings Management in terms of design,
construction, operation, and closure of the tailings storage
facility.
The new TSF would enable operations at Pueblo
Viejo to continue beyond 2040. As a major creator of value for the
Dominican Republic, the project will stop the decline in
production, and will facilitate the continued payment of taxes,
exportation, jobs, national and local purchases, and social
benefits the mine brings to the country.
In 2021, the Tier One mine paid $527 million in
direct and indirect taxes which brings total tax payments since
2013 to more than $3 billion.
“Our goal in the Dominican Republic, as
elsewhere in the world, is to create long-term value for all our
stakeholders through our strategy of sustainable development.
Pueblo Viejo’s expansion project is expected to increase total
direct and indirect taxes to over $9 billion from the beginning of
commercial production in 2013 through to the extended life of mine
beyond 204018,” Bristow said.
BARRICK ANNUAL REPORT PUBLISHED
The 2021 Annual Report was published in
March
Barrick’s 2021 Annual Report, Annual Information
Form and Form 40-F are available on SEDAR (www.sedar.com) and EDGAR
(www.sec.gov), respectively. Updated National Instrument 43-101
technical reports for each of the Kibali Gold Mine and the Cortez
Complex, current as of December 31, 2021, 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.
Barrick expands global footprint in hunt
for high-quality assets
Barrick is continuing to invest in its future
through the development of capital projects that will expand and
enhance an operating platform which already holds some of the
industry’s best assets, says president and chief executive Mark
Bristow.
Writing in the Company’s 2021 Annual Report
Bristow says that, while building on this value foundation, Barrick
was also expanding its presence into new prospective areas in its
hunt for high-quality assets.
“A specialist Asia-Pacific team, set up to look
at opportunities in that region, has acquired exploration permits
in Japan and are hunting for additional opportunities in that
region. We are also investigating projects across the Nubian and
Arabian Shields in North Africa and the Middle East. We have put a
particularly strong focus on exploration in Latin America, where
our teams are testing a portfolio of targets on the El Indio belt
along the border between Argentina and Chile. We have also added
ground in Peru and started fieldwork on new projects in Guyana and
Suriname.”
“We are working on a well-defined strategy to
grow our business in Canada where I believe we are under-invested.
A significant exploration portfolio has been secured in the
country’s Uchi Belt and the team is also looking at other
opportunities in the country.”
Bristow says Barrick has mapped out and is
advancing on a clear road to achievable GHG emissions reduction
targets and its long-standing commitment to ESG principles informs
all its business decisions.
“The Social component of ESG tends to be
overshadowed by its Environmental counterpart, but for Barrick it
is the socio-economic state of our less-developed host countries
that is critically important, and much of our sustainability
strategy is directed at ensuring that our host communities are not
negatively impacted by the world’s transition to a green
economy.”
“Our drive to employ the next generation of
mining talent remained steady, with 56% of our workforce now under
the age of 40 and 19%[19] under 30. Throughout the period we also
continued to increase our gender diversity, and last year 17% of
new hires globally were women. Barrick believes in empowering our
people to thrive in a decentralized structure with lean regional
teams designed for agility and focused on creating value for all
our stakeholders,” says Bristow.
Barrick set to deliver substantial
future free cash flows
Barrick is built on a foundation of six Tier One
gold mines with rolling 10-year plans which secure the Company’s
ability to generate substantial free cash flows[1] for the next
decade and beyond, says executive chairman John Thornton.
Writing in the Company’s 2021 Annual Report,
Thornton notes that in September 2018, when the Randgold merger was
announced, Barrick had net debt in excess of $4 billion. Since
then, it has not only moved into a net cash position but has
returned $2.5 billion of cash to shareholders, including last
year’s record distribution of $1.4 billion.
“As previously announced, after careful
consideration of our capital allocation, the board has settled on a
new dividend policy comprising a base dividend with an additional
performance dividend linked to the net cash on the balance sheet,
starting in 2022. We believe this will give our shareholders
guidance on future dividend streams14,” he says.
“The board has also approved a $1 billion share
buyback plan which will afford us the opportunity to acquire our
shares when they are trading below what we consider to be their
intrinsic value.”[20]
S&P UPGRADES BARRICK TO BBB+ WITH STABLE
OUTLOOK
S&P Global Ratings has upgraded Barrick’s
long-term corporate credit rating to BBB+ from BBB, with a stable
outlook. This follows a similar upgrade to Baa1 by Moody’s
Investors Service in October 2020.
Appendix 12022
Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS |
|
2022 forecastattributable production(000s oz) |
2022 forecastcost of sales8 ($/oz) |
2022 forecast totalcash costs9 ($/oz) |
2022 forecast all-insustaining costs9 ($/oz) |
Carlin (61.5%)21 |
950 - 1,030 |
900 - 980 |
730 - 790 |
1,020 - 1,100 |
Cortez (61.5%)22 |
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%)23 |
— |
— |
— |
— |
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
Barrick24,25,26 |
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 ($/lb) |
Lumwana |
250 - 280 |
2.20 - 2.50 |
1.60 - 1.80 |
3.10 - 3.40 |
Zaldívar (50%) |
100 - 120 |
2.70 - 3.00 |
2.00 - 2.20 |
2.50 - 2.80 |
Jabal Sayid (50%) |
70 - 80 |
1.40 - 1.70 |
1.30 - 1.50 |
1.30 - 1.60 |
Total Attributable to
Barrick25 |
420 - 470 |
2.20 - 2.50 |
1.70 - 1.90 |
2.70 - 3.00 |
|
|
|
|
|
ATTRIBUTABLE CAPITAL EXPENDITURES |
|
|
|
|
($ 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 EBITDA27(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 |
+/- $0.01/lb |
Appendix 2Production
and Cost Summary - Gold
|
For the three months ended |
|
3/31/22 |
12/31/21 |
% Change |
3/31/21 |
% Change |
Nevada Gold Mines LLC
(61.5%)a |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
459 |
604 |
(24)% |
485 |
(5)% |
Gold produced (000s oz 100% basis) |
747 |
981 |
(24)% |
789 |
(5)% |
Cost of sales ($/oz) |
1,169 |
1,023 |
14% |
1,047 |
12% |
Total cash costs ($/oz)b |
820 |
687 |
19% |
686 |
20% |
All-in sustaining costs ($/oz)b |
1,118 |
893 |
25% |
932 |
20% |
Carlin (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
229 |
295 |
(22)% |
229 |
0% |
Gold produced (000s oz 100% basis) |
373 |
479 |
(22)% |
373 |
0% |
Cost of sales ($/oz) |
1,015 |
899 |
13% |
950 |
7% |
Total cash costs ($/oz)b |
829 |
728 |
14% |
766 |
8% |
All-in sustaining costs ($/oz)b |
1,139 |
950 |
20% |
1,045 |
9% |
Cortez (61.5%)d |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
115 |
169 |
(32)% |
100 |
15% |
Gold produced (000s oz 100% basis) |
187 |
275 |
(32)% |
163 |
15% |
Cost of sales ($/oz) |
1,113 |
984 |
13% |
1,251 |
(11)% |
Total cash costs ($/oz)b |
784 |
657 |
19% |
860 |
(9)% |
All-in sustaining costs ($/oz)b |
1,150 |
853 |
35% |
1,203 |
(4)% |
Turquoise Ridge (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
67 |
82 |
(18)% |
92 |
(27)% |
Gold produced (000s oz 100% basis) |
109 |
133 |
(18)% |
149 |
(27)% |
Cost of sales ($/oz) |
1,436 |
1,194 |
20% |
1,007 |
43% |
Total cash costs ($/oz)b |
1,030 |
819 |
26% |
647 |
59% |
All-in sustaining costs ($/oz)b |
1,281 |
996 |
29% |
741 |
73% |
Phoenix (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
23 |
25 |
(8)% |
25 |
(8)% |
Gold produced (000s oz 100% basis) |
37 |
41 |
(8)% |
41 |
(8)% |
Cost of sales ($/oz) |
2,253 |
2,047 |
10% |
2,051 |
10% |
Total cash costs ($/oz)b |
835 |
443 |
88% |
346 |
141% |
All-in sustaining costs ($/oz)b |
1,027 |
614 |
67% |
530 |
94% |
Long Canyon (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
25 |
33 |
(24)% |
39 |
(36)% |
Gold produced (000s oz 100% basis) |
41 |
53 |
(24)% |
63 |
(36)% |
Cost of sales ($/oz) |
1,093 |
999 |
9% |
511 |
114% |
Total cash costs ($/oz)b |
342 |
325 |
5% |
79 |
333% |
All-in sustaining costs ($/oz)b |
366 |
384 |
(5)% |
156 |
135% |
Pueblo Viejo (60%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
104 |
107 |
(3)% |
137 |
(24)% |
Gold produced (000s oz 100% basis) |
174 |
178 |
(3)% |
229 |
(24)% |
Cost of sales ($/oz) |
1,077 |
987 |
9% |
816 |
32% |
Total cash costs ($/oz)b |
682 |
612 |
11% |
507 |
35% |
All-in sustaining costs ($/oz)b |
948 |
858 |
10% |
689 |
38% |
Loulo-Gounkoto (80%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
138 |
126 |
10% |
154 |
(10)% |
Gold produced (000s oz 100% basis) |
172 |
158 |
10% |
193 |
(10)% |
Cost of sales ($/oz) |
1,088 |
1,139 |
(4)% |
974 |
12% |
Total cash costs ($/oz)b |
721 |
685 |
5% |
608 |
19% |
All-in sustaining costs ($/oz)b |
982 |
822 |
19% |
920 |
7% |
Kibali (45%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
76 |
94 |
(19)% |
86 |
(12)% |
Gold produced (000s oz 100% basis) |
168 |
209 |
(19)% |
192 |
(12)% |
Cost of sales ($/oz) |
1,137 |
979 |
16% |
1,065 |
7% |
Total cash costs ($/oz)b |
744 |
582 |
28% |
691 |
8% |
All-in sustaining costs ($/oz)b |
996 |
776 |
28% |
856 |
16% |
Veladero (50%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
46 |
61 |
(25)% |
32 |
44% |
Gold produced (000s oz 100% basis) |
92 |
122 |
(25)% |
64 |
44% |
Cost of sales ($/oz) |
1,348 |
1,279 |
5% |
1,151 |
17% |
Total cash costs ($/oz)b |
847 |
834 |
2% |
736 |
15% |
All-in sustaining costs ($/oz)b |
1,588 |
1,113 |
43% |
2,104 |
(25) % |
Porgera (47.5%)e |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
— |
— |
—% |
— |
—% |
Gold produced (000s oz 100% basis) |
— |
— |
—% |
— |
—% |
Cost of sales ($/oz) |
— |
— |
—% |
— |
—% |
Total cash costs ($/oz)b |
— |
— |
—% |
— |
—% |
All-in sustaining costs ($/oz)b |
— |
— |
—% |
— |
—% |
Tongon (89.7%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
35 |
50 |
(30)% |
48 |
(27)% |
Gold produced (000s oz 100% basis) |
39 |
56 |
(30)% |
54 |
(27)% |
Cost of sales ($/oz) |
2,036 |
1,494 |
36% |
1,510 |
35% |
Total cash costs ($/oz)b |
1,667 |
1,205 |
38% |
995 |
68% |
All-in sustaining costs ($/oz)b |
1,803 |
1,301 |
39% |
1,062 |
70% |
Hemlo |
|
|
|
|
|
Gold produced (000s oz) |
31 |
35 |
(11)% |
47 |
(34)% |
Cost of sales ($/oz) |
1,727 |
1,770 |
(2)% |
1,610 |
7% |
Total cash costs ($/oz)b |
1,503 |
1,481 |
1% |
1,324 |
14% |
All-in sustaining costs ($/oz)b |
1,982 |
1,938 |
2% |
1,840 |
8% |
North Mara (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
56 |
69 |
(19)% |
62 |
(10)% |
Gold produced (000s oz 100% basis) |
66 |
82 |
(19)% |
74 |
(10)% |
Cost of sales ($/oz) |
852 |
858 |
(1)% |
1,061 |
(20)% |
Total cash costs ($/oz)b |
709 |
679 |
4% |
832 |
(15)% |
All-in sustaining costs ($/oz)b |
874 |
1,033 |
(15)% |
1,038 |
(16)% |
Buzwagi (84%)f |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
|
|
|
17 |
|
Gold produced (000s oz 100% basis) |
|
|
|
20 |
|
Cost of sales ($/oz) |
|
|
|
1,486 |
|
Total cash costs ($/oz)b |
|
|
|
1,450 |
|
All-in sustaining costs ($/oz)b |
|
|
|
1,467 |
|
Bulyanhulu (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
45 |
57 |
(21)% |
33 |
36% |
Gold produced (000s oz 100% basis) |
53 |
68 |
(21)% |
39 |
36% |
Cost of sales ($/oz) |
1,216 |
956 |
27% |
1,211 |
0% |
Total cash costs ($/oz)b |
847 |
567 |
49% |
865 |
(2)% |
All-in sustaining costs ($/oz)b |
984 |
897 |
10% |
957 |
3% |
Total Attributable to
Barrickg |
|
|
|
|
|
Gold produced (000s oz) |
990 |
1,203 |
(18)% |
1,101 |
(10)% |
Cost of sales ($/oz)h |
1,190 |
1,075 |
11% |
1,073 |
11% |
Total cash costs ($/oz)b |
832 |
715 |
16% |
716 |
16% |
All-in sustaining costs ($/oz)b |
1,164 |
971 |
20% |
1,018 |
14% |
- 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, as previously disclosed, we have ceased
to include production or non-GAAP cost metrics for Buzwagi from
October 1, 2021 onwards.
- Excludes
Pierina, Golden Sunlight, 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 |
|
3/31/22 |
12/31/21 |
% Change |
3/31/21 |
% Change |
Lumwana |
|
|
|
|
|
Copper production (Mlbs) |
57 |
78 |
(27)% |
51 |
12% |
Cost of sales ($/lb) |
2.20 |
2.16 |
2% |
1.97 |
12% |
C1 cash costs ($/lb)a |
1.86 |
1.54 |
21% |
1.48 |
26% |
All-in sustaining costs ($/lb)a |
3.16 |
3.29 |
(4)% |
2.37 |
33% |
Zaldívar
(50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
25 |
27 |
(7)% |
24 |
4% |
Copper production (Mlbs 100% basis) |
51 |
54 |
(7)% |
48 |
4% |
Cost of sales ($/lb) |
2.85 |
3.14 |
(9)% |
3.03 |
(6)% |
C1 cash costs ($/lb)a |
2.15 |
2.35 |
(9)% |
2.25 |
(4)% |
All-in sustaining costs ($/lb)a |
2.64 |
3.42 |
(23)% |
2.47 |
7% |
Jabal Sayid (50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
19 |
21 |
(10)% |
18 |
6% |
Copper production (Mlbs 100% basis) |
38 |
42 |
(10)% |
36 |
6% |
Cost of sales ($/lb) |
1.30 |
1.36 |
(4)% |
1.21 |
7% |
C1 cash costs ($/lb)a |
1.10 |
1.11 |
(1)% |
1.06 |
4% |
All-in sustaining costs ($/lb)a |
1.17 |
1.27 |
(8)% |
1.22 |
(4)% |
Total Attributable to Barrick |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
101 |
126 |
(20)% |
93 |
9% |
Cost of sales ($/lb)b |
2.21 |
2.21 |
0% |
2.11 |
5% |
C1 cash costs ($/lb)a |
1.81 |
1.63 |
11% |
1.60 |
13% |
All-in sustaining costs ($/lb)a |
2.85 |
2.92 |
(2)% |
2.26 |
26% |
- 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 |
|
|
3/31/22 |
|
12/31/21 |
|
% Change |
|
|
3/31/21 |
|
% Change |
|
Financial Results ($ millions) |
|
|
|
|
|
|
Revenues |
2,853 |
|
3,310 |
|
(14 |
)% |
|
2,956 |
|
(3 |
)% |
Cost of sales |
1,739 |
|
1,905 |
|
(9 |
)% |
|
1,712 |
|
2 |
% |
Net earningsa |
438 |
|
726 |
|
(40 |
)% |
|
538 |
|
(19 |
)% |
Adjusted net earningsb |
463 |
|
626 |
|
(26 |
)% |
|
507 |
|
(9 |
)% |
Adjusted EBITDAb |
1,645 |
|
2,070 |
|
(21 |
)% |
|
1,800 |
|
(9 |
)% |
Adjusted EBITDA marginc |
58 |
% |
63 |
% |
(8 |
)% |
|
61 |
% |
(5 |
)% |
Minesite sustaining capital
expendituresb,d |
420 |
|
431 |
|
(3 |
)% |
|
405 |
|
4 |
% |
Project capital
expendituresb,d |
186 |
|
234 |
|
(21 |
)% |
|
131 |
|
42 |
% |
Total consolidated capital
expendituresd,e |
611 |
|
669 |
|
(9 |
)% |
|
539 |
|
13 |
% |
Net cash provided by operating
activities |
1,004 |
|
1,387 |
|
(28 |
)% |
|
1,302 |
|
(23 |
)% |
Net cash provided by operating
activities marginf |
35 |
% |
42 |
% |
(17 |
)% |
|
44 |
% |
(20 |
)% |
Free cash flowb |
393 |
|
718 |
|
(45 |
)% |
|
763 |
|
(48 |
)% |
Net earnings per share (basic and
diluted) |
0.25 |
|
0.41 |
|
(39 |
)% |
|
0.30 |
|
(17 |
)% |
Adjusted net earnings
(basic)b per share |
0.26 |
|
0.35 |
|
(26 |
)% |
|
0.29 |
|
(10 |
)% |
Weighted average diluted common shares (millions of shares) |
1,779 |
|
1,779 |
|
0 |
% |
|
1,778 |
|
0 |
% |
Operating Results |
|
|
|
|
|
|
Gold production (thousands of
ounces)g |
990 |
|
1,203 |
|
(18 |
)% |
|
1,101 |
|
(10 |
)% |
Gold sold (thousands of
ounces)g |
993 |
|
1,234 |
|
(20 |
)% |
|
1,093 |
|
(9 |
)% |
Market gold price ($/oz) |
1,877 |
|
1,795 |
|
5 |
% |
|
1,794 |
|
5 |
% |
Realized gold
priceb,g ($/oz) |
1,876 |
|
1,793 |
|
5 |
% |
|
1,777 |
|
6 |
% |
Gold cost of sales (Barrick’s
share)g,h ($/oz) |
1,190 |
|
1,075 |
|
11 |
% |
|
1,073 |
|
11 |
% |
Gold total cash
costsb,g ($/oz) |
832 |
|
715 |
|
16 |
% |
|
716 |
|
16 |
% |
Gold all-in sustaining
costsb,g ($/oz) |
1,164 |
|
971 |
|
20 |
% |
|
1,018 |
|
14 |
% |
Copper production (millions of
pounds)g |
101 |
|
126 |
|
(20 |
)% |
|
93 |
|
9 |
% |
Copper sold (millions of
pounds)g |
113 |
|
113 |
|
0 |
% |
|
113 |
|
0 |
% |
Market copper price ($/lb) |
4.53 |
|
4.40 |
|
3 |
% |
|
3.86 |
|
17 |
% |
Realized copper
priceb,g ($/lb) |
4.68 |
|
4.63 |
|
1 |
% |
|
4.12 |
|
14 |
% |
Copper cost of sales (Barrick’s
share)g,i ($/lb) |
2.21 |
|
2.21 |
|
0 |
% |
|
2.11 |
|
5 |
% |
Copper C1 cash
costsb,g ($/lb) |
1.81 |
|
1.63 |
|
11 |
% |
|
1.60 |
|
13 |
% |
Copper all-in sustaining
costsb,g ($/lb) |
2.85 |
|
2.92 |
|
(2 |
)% |
|
2.26 |
|
26 |
% |
|
As at3/31/22 |
|
As at12/31/21 |
|
% Change |
|
|
As at3/31/21 |
|
% Change |
|
Financial Position ($ millions) |
|
|
|
|
|
|
Debt (current and long-term) |
5,144 |
|
5,150 |
|
0 |
% |
|
5,153 |
|
0 |
% |
Cash and equivalents |
5,887 |
|
5,280 |
|
11 |
% |
|
5,672 |
|
4 |
% |
Debt, net of cash |
(743 |
) |
(130 |
) |
472 |
% |
|
(519 |
) |
43 |
% |
- 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 $5 million for
the three month period ended March 31, 2022 (December 31,
2021: $4 million and March 31, 2021: $3 million).
- 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 endedMarch 31, |
|
|
|
2022 |
|
|
2021 |
|
Revenue (notes 5 and 6) |
$2,853 |
|
$2,956 |
|
Costs and expenses (income) |
|
|
Cost of sales (notes 5 and
7) |
|
1,739 |
|
|
1,712 |
|
General and administrative
expenses |
|
54 |
|
|
38 |
|
Exploration, evaluation and
project expenses |
|
67 |
|
|
61 |
|
Impairment (reversals) charges
(notes 9b and 13) |
|
2 |
|
|
(89 |
) |
Loss on currency translation |
|
3 |
|
|
4 |
|
Closed mine rehabilitation |
|
3 |
|
|
23 |
|
Income from equity investees
(note 12) |
|
(99 |
) |
|
(103 |
) |
Other (income) expense (note 9a) |
|
(11 |
) |
|
19 |
|
Income before finance costs and income taxes |
$1,095 |
|
$1,291 |
|
Finance costs, net |
|
(88 |
) |
|
(87 |
) |
Income before income taxes |
$1,007 |
|
$1,204 |
|
Income tax expense (note 10) |
|
(301 |
) |
|
(374 |
) |
Net income |
$706 |
|
$830 |
|
Attributable to: |
|
|
Equity holders of Barrick Gold
Corporation |
$438 |
|
$538 |
|
Non-controlling interests (note 16) |
$268 |
|
$292 |
|
|
|
|
Earnings per share
data attributable to the equity holders of Barrick Gold Corporation
(note 8) |
|
|
Net income |
|
|
Basic |
$0.25 |
|
$0.30 |
|
Diluted |
$0.25 |
|
$0.30 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the First 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 endedMarch 31, |
|
|
|
2022 |
|
|
2021 |
|
Net
income |
$706 |
|
$830 |
|
Other comprehensive
income (loss), net of taxes |
|
|
Items that will not be
reclassified to profit or loss: |
|
|
Net change on equity investments,
net of tax ($8) and $8 |
|
58 |
|
|
(47 |
) |
Total other comprehensive income (loss) |
|
58 |
|
|
(47 |
) |
Total comprehensive income |
$764 |
|
$783 |
|
Attributable to: |
|
|
Equity holders of Barrick Gold
Corporation |
$496 |
|
$491 |
|
Non-controlling interests |
$268 |
|
$292 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the First 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 endedMarch 31, |
|
|
|
2022 |
|
|
2021 |
|
OPERATING ACTIVITIES |
|
|
Net income |
$706 |
|
$830 |
|
Adjustments for the following
items: |
|
|
Depreciation |
|
460 |
|
|
507 |
|
Finance costs, net |
|
98 |
|
|
94 |
|
Impairment (reversals) charges (notes 9b and 13) |
|
2 |
|
|
(89 |
) |
Income tax expense (note 10) |
|
301 |
|
|
374 |
|
Income from equity investees (note 12) |
|
(99 |
) |
|
(103 |
) |
Gain on sale of non-current assets |
|
(2 |
) |
|
(3 |
) |
Loss on currency translation |
|
3 |
|
|
4 |
|
Change in working capital
(note 11) |
|
(131 |
) |
|
(58 |
) |
Other
operating activities (note 11) |
|
(77 |
) |
|
(34 |
) |
Operating cash flows before interest and income taxes |
|
1,261 |
|
|
1,522 |
|
Interest paid |
|
(23 |
) |
|
(22 |
) |
Income
taxes paid1 |
|
(234 |
) |
|
(198 |
) |
Net cash provided by operating activities |
|
1,004 |
|
|
1,302 |
|
INVESTING ACTIVITIES |
|
|
Property, plant and
equipment |
|
|
Capital expenditures (note 5) |
|
(611 |
) |
|
(539 |
) |
Sales proceeds |
|
1 |
|
|
4 |
|
Investment sales |
|
260 |
|
|
— |
|
Dividends received from equity
method investments (note 12) |
|
359 |
|
|
126 |
|
Shareholder loan repayments from equity method investments (note
12) |
|
— |
|
|
1 |
|
Net cash provided by (used in) investing
activities |
|
9 |
|
|
(408 |
) |
FINANCING ACTIVITIES |
|
|
Lease repayments |
|
(6 |
) |
|
(6 |
) |
Debt repayments |
|
— |
|
|
(7 |
) |
Dividends |
|
(178 |
) |
|
(158 |
) |
Funding from non-controlling
interests (note 16) |
|
— |
|
|
6 |
|
Disbursements to
non-controlling interests (note 16) |
|
(267 |
) |
|
(265 |
) |
Pueblo
Viejo JV partner shareholder loan |
|
45 |
|
|
21 |
|
Net cash used in financing activities |
|
(406 |
) |
|
(409 |
) |
Effect of exchange rate changes on cash and
equivalents |
|
— |
|
|
(1 |
) |
Net increase in cash and equivalents |
|
607 |
|
|
484 |
|
Cash and equivalents at the beginning of
period |
|
5,280 |
|
|
5,188 |
|
Cash and equivalents at the end of period |
$5,887 |
|
$5,672 |
|
1. Income taxes paid excludes $26 million (2021:
$36 million) of income taxes payable that were settled against
offsetting VAT receivables.
The notes to these unaudited condensed interim financial
statements, which are contained in the First Quarter Report 2022
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Balance Sheets
Barrick Gold Corporation |
As at March 31, |
|
As at December 31, |
|
(in
millions of United States dollars) (Unaudited) |
2022 |
|
2021 |
|
ASSETS |
|
|
Current assets |
|
|
Cash and equivalents |
$5,887 |
|
$5,280 |
|
Accounts receivable |
|
640 |
|
|
623 |
|
Inventories |
|
1,766 |
|
|
1,734 |
|
Other current assets |
|
722 |
|
|
612 |
|
Total current assets |
$9,015 |
|
$8,249 |
|
Non-current assets |
|
|
Equity in investees (note 12) |
|
4,334 |
|
|
4,594 |
|
Property, plant and equipment |
|
25,153 |
|
|
24,954 |
|
Goodwill |
|
4,769 |
|
|
4,769 |
|
Intangible assets |
|
149 |
|
|
150 |
|
Deferred income tax assets |
|
15 |
|
|
29 |
|
Non-current portion of inventory |
|
2,639 |
|
|
2,636 |
|
Other assets |
|
1,232 |
|
|
1,509 |
|
Total assets |
$47,306 |
|
$46,890 |
|
LIABILITIES AND EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$1,525 |
|
$1,448 |
|
Debt |
|
14 |
|
|
15 |
|
Current income tax liabilities |
|
342 |
|
|
285 |
|
Other current liabilities |
|
366 |
|
|
338 |
|
Total current liabilities |
$2,247 |
|
$2,086 |
|
Non-current liabilities |
|
|
Debt |
|
5,130 |
|
|
5,135 |
|
Provisions |
|
2,738 |
|
|
2,768 |
|
Deferred income tax liabilities |
|
3,308 |
|
|
3,293 |
|
Other liabilities |
|
1,257 |
|
|
1,301 |
|
Total liabilities |
$14,680 |
|
$14,583 |
|
Equity |
|
|
Capital stock (note 15) |
$28,497 |
|
$28,497 |
|
Deficit |
|
(6,306 |
) |
|
(6,566 |
) |
Accumulated other comprehensive income (loss) |
|
35 |
|
|
(23 |
) |
Other |
|
1,949 |
|
|
1,949 |
|
Total equity attributable to Barrick Gold Corporation
shareholders |
$24,175 |
|
$23,857 |
|
Non-controlling interests (note 16) |
|
8,451 |
|
|
8,450 |
|
Total equity |
$32,626 |
|
$32,307 |
|
Contingencies and commitments (notes 5 and 17) |
|
|
Total liabilities and equity |
$47,306 |
|
$46,890 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the First 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 |
— |
|
|
— |
|
|
438 |
|
|
— |
|
|
— |
|
|
438 |
|
|
268 |
|
|
706 |
|
Total other comprehensive income (loss) |
— |
|
|
— |
|
|
— |
|
|
58 |
|
|
— |
|
|
58 |
|
|
— |
|
|
58 |
|
Total comprehensive income |
— |
|
|
— |
|
|
438 |
|
|
58 |
|
|
— |
|
|
496 |
|
|
268 |
|
|
764 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(178 |
) |
|
— |
|
|
— |
|
|
(178 |
) |
|
— |
|
|
(178 |
) |
Disbursements to non-controlling interests (note 16) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(267 |
) |
|
(267 |
) |
Dividend reinvestment plan (note 15) |
25 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total transactions with owners |
25 |
|
|
— |
|
|
(178 |
) |
|
— |
|
|
— |
|
|
(178 |
) |
|
(267 |
) |
|
(445 |
) |
At March 31, 2022 |
1,779,356 |
|
$28,497 |
|
($6,306 |
) |
$35 |
|
$1,949 |
|
$24,175 |
|
$8,451 |
|
$32,626 |
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2021 |
1,778,190 |
|
$29,236 |
|
($7,949 |
) |
$14 |
|
$2,040 |
|
$23,341 |
|
$8,369 |
|
$31,710 |
|
Net income |
— |
|
|
— |
|
|
538 |
|
|
— |
|
|
— |
|
|
538 |
|
|
292 |
|
|
830 |
|
Total other comprehensive income (loss) |
— |
|
|
— |
|
|
— |
|
|
(47 |
) |
|
— |
|
|
(47 |
) |
|
— |
|
|
(47 |
) |
Total comprehensive income (loss) |
— |
|
|
— |
|
|
538 |
|
|
(47 |
) |
|
— |
|
|
491 |
|
|
292 |
|
|
783 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(158 |
) |
|
— |
|
|
— |
|
|
(158 |
) |
|
— |
|
|
(158 |
) |
Issued on exercise of stock options |
50 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Funding from non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6 |
|
|
6 |
|
Disbursements to non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(262 |
) |
|
(262 |
) |
Dividend reinvestment plan |
72 |
|
|
2 |
|
|
(2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Share-based payments |
59 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total transactions with owners |
181 |
|
|
2 |
|
|
(160 |
) |
|
— |
|
|
— |
|
|
(158 |
) |
|
(256 |
) |
|
(414 |
) |
At March 31, 2021 |
1,778,371 |
|
$29,238 |
|
($7,571 |
) |
($33 |
) |
$2,040 |
|
$23,674 |
|
$8,405 |
|
$32,079 |
|
1. Includes cumulative translation losses at March 31,
2022: $94 million (December 31, 2021: $94 million;
March 31, 2021: $95 million).2. Includes additional paid-in
capital as at March 31, 2022: $1,911 million
(December 31, 2021: $1,911 million; March 31, 2021:
$2,002 million).
The notes to these unaudited condensed interim financial
statements, which are contained in the First 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
Craig Fiddes, SME-RM, Manager – Resource Modeling, Nevada Gold
Mines; Chad Yuhasz, P.Geo, Mineral Resource Manager, Latin America
& Asia Pacific; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM,
Mineral Resources Manager: Africa & Middle East; Rodney Quick,
MSc, Pr. Sci.Nat, Mineral Resource Management and Evaluation
Executive; John Steele, CIM, Metallurgy, Engineering and Capital
Projects Executive; and Rob Krcmarov, FAusIMM, Technical Advisor to
Barrick — 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, 2021.
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 |
|
3/31/22 |
12/31/21 |
3/31/21 |
Net
cash provided by operating activities |
1,004 |
|
1,387 |
|
1,302 |
|
Capital expenditures |
(611 |
) |
(669 |
) |
(539 |
) |
Free cash flow |
393 |
|
718 |
|
763 |
|
Endnote 2
Calculated as cash and equivalents ($5,887
million) less debt ($5,144 million).
Endnote 3
“Adjusted net earnings” and “adjusted net
earnings per share” are non-GAAP financial performance measures.
Adjusted net earnings excludes the following from net earnings:
certain impairment charges (reversals) related to intangibles,
goodwill, property, plant and equipment, and investments; gains
(losses) and other one time costs relating to acquisitions or
dispositions; foreign currency translation gains (losses);
significant tax adjustments not related to current period earnings;
and the tax effect and non-controlling interest of these items.
Management uses this measure internally to evaluate our underlying
operating performance for the reporting periods presented and to
assist with the planning and forecasting of future operating
results. Management believes that adjusted net earnings is a useful
measure of our performance because these adjusting items do not
reflect the underlying operating performance of our core mining
business and are not necessarily indicative of future operating
results. Adjusted net earnings and adjusted net earnings per share
are intended to provide additional information only and do not have
any standardized definition under IFRS and should not be considered
in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. Other companies may calculate
these measures differently. Further details on these non-GAAP
financial performance measures are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to Net
Earnings per Share, Adjusted Net Earnings and Adjusted Net Earnings
per Share
($
millions, except per share amounts in dollars) |
For the three months ended |
|
3/31/22 |
12/31/21 |
3/31/21 |
Net
earnings attributable to equity holders of the Company |
438 |
|
726 |
|
538 |
|
Impairment charges (reversals)
related to intangibles, goodwill, property, plant and equipment,
and investmentsa |
2 |
|
14 |
|
(89 |
) |
Acquisition/disposition
(gains) lossesb |
(2 |
) |
(198 |
) |
(3 |
) |
Loss on currency translation |
3 |
|
13 |
|
4 |
|
Significant tax adjustmentsc |
17 |
|
(29 |
) |
47 |
|
Other expense adjustmentsd |
13 |
|
36 |
|
11 |
|
Tax
effect and non-controlling intereste |
(8 |
) |
64 |
|
(1 |
) |
Adjusted net earnings |
463 |
|
626 |
|
507 |
|
Net earnings per sharef |
0.25 |
|
0.41 |
|
0.30 |
|
Adjusted net earnings per sharef |
0.26 |
|
0.35 |
|
0.29 |
|
- For the three month period ended
March 31, 2022, we recorded no significant impairment charges or
reversals. Net impairment reversals for the three months ended
March 31, 2021 mainly relate to non-current asset reversals at
Lagunas Norte.
- There were no significant
acquisition/disposition gains or losses for the three months ended
March 31, 2022. Acquisition/disposition gains for the three month
period ended December 31, 2021 primarily relate to the gain on the
divestiture of Lone Tree.
- For the three month period ended
December 31, 2021, significant tax adjustments mainly relate to the
impacts of the South Arturo asset exchange, foreign currency
translation gains and losses on tax balances, and the
recognition/derecognition of our deferred taxes in various
jurisdictions. For the three months ended March 31, 2021,
significant tax adjustments primarily relate to the remeasurement
of deferred tax balances for changes in foreign currency rates and
the recognition/derecognition of our deferred taxes in various
jurisdictions.
- Other expense adjustments for all
periods mainly relate to care and maintenance expenses at Porgera.
The three month period ended December 31, 2021 was further impacted
by a $25 million litigation settlement.
- Tax effect and non-controlling
interest for the three month period ended March 31, 2022 primarily
relates to other expense adjustments, while tax effect and
non-controlling interest for the three month period ended December
31, 2021 mainly relates to acquisition/disposition gains.
- Calculated using weighted average
number of shares outstanding under the basic method of earnings per
share.
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 |
For the three months ended |
|
3/31/22 |
12/31/21 |
3/31/21 |
3/31/22 |
12/31/21 |
3/31/21 |
Sales |
2,511 |
|
2,977 |
|
2,641 |
|
287 |
263 |
256 |
Sales applicable to
non-controlling interests |
(787 |
) |
(931 |
) |
(814 |
) |
0 |
0 |
0 |
Sales applicable to equity
method investmentsa,b |
136 |
|
172 |
|
154 |
|
188 |
222 |
170 |
Sales applicable to sites in
closure or care and maintenancec |
0 |
|
(8 |
) |
(41 |
) |
0 |
0 |
0 |
Treatment and refinement
charges |
3 |
|
1 |
|
0 |
|
51 |
39 |
41 |
Otherd |
0 |
|
2 |
|
0 |
|
0 |
0 |
0 |
Revenues – as adjusted |
1,863 |
|
2,213 |
|
1,940 |
|
526 |
524 |
467 |
Ounces/pounds sold (000s ounces/millions pounds)c |
993 |
|
1,234 |
|
1,093 |
|
113 |
113 |
113 |
Realized gold/copper price per ounce/pounde |
1,876 |
|
1,793 |
|
1,777 |
|
4.68 |
4.63 |
4.12 |
- Represents sales of $137 million
for the three month period ended March 31, 2022
(December 31, 2021: $172 million and March 31, 2021: $154
million) applicable to our 45% equity method investment in Kibali
for gold. Represents sales of $118 million for the three months
ended March 31, 2022 (December 31, 2021: $119 million and
March 31, 2021: $109 million) applicable to our 50% equity
method investment in Zaldívar and $75 million (December 31,
2021: $111 million and March 31, 2021: $65 million) applicable
to our 50% equity method investment in Jabal Sayid for copper.
- Sales applicable to equity method
investments are net of treatment and refinement charges.
- Excludes Pierina, Golden Sunlight,
Lagunas Norte up until its divestiture in June 2021, and Buzwagi
starting in the fourth quarter of 2021. Some of these assets are
producing incidental ounces while in closure or care and
maintenance.
- Represents a cumulative catch-up
adjustment to revenue relating to our streaming arrangements. Refer
to note 2e of the 2021 Annual Financial Statements for more
information.
- Realized price per ounce/pound may
not calculate based on amounts presented in this table due to
rounding.
Endnote 5
Capital expenditures are classified into
minesite sustaining capital expenditures or project capital
expenditures depending on the nature of the expenditure. Minesite
sustaining capital expenditures is the capital spending required to
support current production levels. Project capital expenditures
represent the capital spending at new projects and major, discrete
projects at existing operations intended to increase net present
value through higher production or longer mine life. Management
believes this to be a useful indicator of the purpose of capital
expenditures and this distinction is an input into the calculation
of all-in sustaining costs per ounce and all-in costs per ounce.
Classifying capital expenditures is intended to provide additional
information only and does not have any standardized definition
under IFRS, and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. Other companies may calculate these measures differently. The
following table reconciles these non-GAAP financial performance
measures to the most directly comparable IFRS measure.
Reconciliation of the Classification of
Capital Expenditures
|
For the three months ended |
($ millions) |
3/31/22 |
12/31/21 |
3/31/2021 |
Minesite sustaining capital expenditures |
420 |
431 |
405 |
Project capital expenditures |
186 |
234 |
131 |
Capitalized interest |
5 |
4 |
3 |
Total consolidated capital expenditures |
611 |
669 |
539 |
Endnote 6
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 7
On an attributable basis.
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).
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 |
|
Footnote |
3/31/22 |
12/31/21 |
3/31/21 |
Cost of sales applicable to gold production |
|
1,582 |
|
1,771 |
|
1,571 |
|
Depreciation |
|
(419 |
) |
(512 |
) |
(454 |
) |
Cash cost of sales applicable to equity method investments |
|
51 |
|
52 |
|
59 |
|
By-product credits |
|
(55 |
) |
(70 |
) |
(59 |
) |
Realized (gains) losses on hedge and non-hedge derivatives |
|
0 |
|
0 |
|
0 |
|
Non-recurring items |
a |
0 |
|
0 |
|
0 |
|
Other |
b |
(1 |
) |
(7 |
) |
(33 |
) |
Non-controlling interests |
c |
(331 |
) |
(351 |
) |
(302 |
) |
Total cash costs |
|
827 |
|
883 |
|
782 |
|
General & administrative costs |
|
54 |
|
39 |
|
38 |
|
Minesite exploration and evaluation costs |
d |
10 |
|
12 |
|
16 |
|
Minesite sustaining capital expenditures |
e |
420 |
|
431 |
|
405 |
|
Sustaining leases |
|
9 |
|
13 |
|
13 |
|
Rehabilitation - accretion and amortization (operating sites) |
f |
11 |
|
12 |
|
11 |
|
Non-controlling interest, copper operations and other |
g |
(176 |
) |
(191 |
) |
(154 |
) |
All-in sustaining costs |
|
1,155 |
|
1,199 |
|
1,111 |
|
Global exploration and evaluation and project expense |
d |
57 |
|
70 |
|
45 |
|
Community relations costs not related to current operations |
|
0 |
|
0 |
|
0 |
|
Project capital expenditures |
e |
186 |
|
234 |
|
131 |
|
Non-sustaining leases |
|
0 |
|
0 |
|
0 |
|
Rehabilitation - accretion and amortization (non-operating
sites) |
f |
3 |
|
2 |
|
3 |
|
Non-controlling interest and copper operations and other |
g |
(58 |
) |
(71 |
) |
(42 |
) |
All-in costs |
|
1,343 |
|
1,434 |
|
1,248 |
|
Ounces sold - equity basis (000s ounces) |
h |
993 |
|
1,234 |
|
1,093 |
|
Cost of sales per ounce |
i,j |
1,190 |
|
1,075 |
|
1,073 |
|
Total cash costs per ounce |
j |
832 |
|
715 |
|
716 |
|
Total
cash costs per ounce (on a co-product basis) |
j,k |
869 |
|
753 |
|
746 |
|
All-in sustaining costs per ounce |
j |
1,164 |
|
971 |
|
1,018 |
|
All-in
sustaining costs per ounce (on a co-product basis) |
j,k |
1,201 |
|
1,009 |
|
1,048 |
|
All-in costs per ounce |
j |
1,353 |
|
1,162 |
|
1,144 |
|
All-in
costs per ounce (on a co-product basis) |
j,k |
1,390 |
|
1,200 |
|
1,174 |
|
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 month period
ended March 31, 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 $3 million (December 31, 2021: $7
million; March 31, 2021: $24 million). |
c. |
Non-controlling interestsNon-controlling interests
include non-controlling interests related to gold production of
$476 million for the three month period ended March 31, 2022
(December 31, 2021: $527 million and March 31, 2021: $462
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 70 of the Q1 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 69 of the
Q1 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 |
Non-controlling interest, copper operations and other |
3/31/22 |
12/31/21 |
3/31/21 |
General & administrative costs |
(13 |
) |
(4 |
) |
(6 |
) |
Minesite exploration and
evaluation expenses |
(3 |
) |
(2 |
) |
(7 |
) |
Rehabilitation - accretion and
amortization (operating sites) |
(3 |
) |
(3 |
) |
(3 |
) |
Minesite sustaining capital expenditures |
(157 |
) |
(182 |
) |
(138 |
) |
All-in sustaining costs total |
(176 |
) |
(191 |
) |
(154 |
) |
Global exploration and evaluation and project expense |
(4 |
) |
(6 |
) |
(1 |
) |
Project capital expenditures |
(54 |
) |
(65 |
) |
(41 |
) |
All-in costs total |
(58 |
) |
(71 |
) |
(42 |
) |
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 $3 million for the three month period ended March 31, 2022
(December 31, 2021: $7 million and March 31, 2021: $5
million); Golden Sunlight of $nil for the three month period ended
March 31, 2022 (December 31, 2021: $nil and
March 31, 2021: $nil); up until its divestiture in June 2021,
Lagunas Norte of $nil for the three month period ended
March 31, 2022 (December 31, 2021: $nil and
March 31, 2021: $23 million); and starting the fourth quarter
of 2021, Buzwagi of $nil for the three month period ended
March 31, 2022 (December 31, 2021: $nil and
March 31, 2021: $nil), which are producing incidental ounces.
Gold cost of sales per ounce is calculated as cost of sales across
our gold operations (excluding sites in closure or care and
maintenance) divided by ounces sold (both on an attributable basis
using Barrick's ownership share). |
j. |
Per ounce
figuresCost of sales per ounce, total cash costs per
ounce, all-in sustaining costs per ounce and all-in costs per ounce
may not calculate based on amounts presented in this table due to
rounding. |
k. |
Co-product costs
per ounceTotal cash costs per ounce, all-in sustaining
costs per ounce and all-in costs per ounce presented on a
co-product basis removes the impact of by-product credits of our
gold production (net of non-controlling interest) calculated
as: |
($
millions) |
For the three months ended |
|
3/31/22 |
12/31/21 |
3/31/21 |
By-product credits |
55 |
|
70 |
|
59 |
|
Non-controlling interest |
(19 |
) |
(25 |
) |
(26 |
) |
By-product credits (net of non-controlling interest) |
36 |
|
45 |
|
33 |
|
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 |
|
3/31/22 |
12/31/21 |
3/31/21 |
Cost of sales |
154 |
|
134 |
|
136 |
|
Depreciation/amortization |
(38 |
) |
(43 |
) |
(48 |
) |
Treatment and refinement charges |
51 |
|
39 |
|
41 |
|
Cash cost of sales applicable to equity method investments |
72 |
|
88 |
|
79 |
|
Less: royalties and production taxesa |
(32 |
) |
(28 |
) |
(23 |
) |
By-product credits |
(3 |
) |
(6 |
) |
(4 |
) |
Other |
0 |
|
0 |
|
0 |
|
C1 cash costs |
204 |
|
184 |
|
181 |
|
General & administrative costs |
12 |
|
5 |
|
4 |
|
Rehabilitation - accretion and amortization |
1 |
|
2 |
|
1 |
|
Royalties and production taxesa |
32 |
|
28 |
|
23 |
|
Minesite exploration and evaluation costs |
3 |
|
5 |
|
2 |
|
Minesite sustaining capital expenditures |
67 |
|
104 |
|
42 |
|
Sustaining leases |
1 |
|
3 |
|
2 |
|
All-in sustaining costs |
320 |
|
331 |
|
255 |
|
Pounds sold - consolidated basis (millions pounds) |
113 |
|
113 |
|
113 |
|
Cost of sales per poundb,c |
2.21 |
|
2.21 |
|
2.11 |
|
C1 cash cost per poundb |
1.81 |
|
1.63 |
|
1.60 |
|
All-in sustaining costs per poundb |
2.85 |
|
2.92 |
|
2.26 |
|
- For the three month period ended
March 31, 2022, royalties and production taxes include
royalties of $32 million (December 31, 2021: $28 million and
March 31, 2021: $23 million).
- 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
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. 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 12
Lost time injury frequency rate (“LTIFR”) is a
ratio calculated as follows: number of lost time injuries x
1,000,000 hours divided by the total number of hours worked.
Endnote 13
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 14
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 15
Historical estimate as of December 31, 2010 on a
100% basis. Probable reserves of 74 million tonnes grading 4.21g/t,
representing 10 million ounces of gold. Historical reserves were
estimated by Randgold Resources in accordance with the Australian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (the “JORC Code”). The JORC Code reporting standards
are functionally equivalent to National Instrument 43-101 -
Standards of Disclosure for Mineral Projects.
Endnote 16
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, 2021 on a 100% basis. Proven reserves of 32 million
tonnes grading 3.76g/t, representing 3.9 million ounces of gold;
probable reserves of 51 million tonnes grading 3.50g/t,
representing 5.8 million ounces of gold. Complete mineral reserve
and mineral resource data for all of Barrick’s mines and projects,
including tonnes, grades, and ounces, can be found on pages 34-47
of Barrick’s 2021 Annual Information Form / Form 40-F on file with
the Canadian provincial securities regulators on SEDAR at
www.sedar.com and the Securities and Exchange Commission on EDGAR
at www.sec.gov.
Endnote 17
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 18
Future economic contribution over extended mine
life assuming a gold price of $1,599 per ounce and a silver price
of $20.96 per ounce.
Endnote 19
As of December 31, 2021.
Endnote 20
The actual number of common shares that may be
purchased, if any, and the timing of any such purchases, will be
determined by Barrick based on a number of factors, including the
company’s financial performance, the availability of cash flows,
and the consideration of other uses of cash, including capital
investment opportunities, returns to shareholders, and debt
reduction.
Endnote 21
Included within our 61.5% interest in Carlin is
Nevada Gold Mines' 100% interest in South Arturo.
Endnote 22
Includes Goldrush.
Endnote 23
Porgera was placed on temporary care and
maintenance in April 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 31 of
Barrick’s Q1 2022 MD&A for further details.
Endnote 24
Total cash costs and all-in sustaining costs per
ounce include costs allocated to non-operating sites.
Endnote 25
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, Golden Sunlight and Buzwagi. Some of these assets
are producing incidental ounces while in closure or care and
maintenance.
Endnote 26
Includes corporate administration costs.
Endnote 27
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 |
|
3/31/22 |
12/31/21 |
3/31/21 |
Net earnings |
706 |
|
1,152 |
|
830 |
|
Income tax expense |
301 |
|
304 |
|
374 |
|
Finance costs, neta |
76 |
|
74 |
|
77 |
|
Depreciation |
460 |
|
557 |
|
507 |
|
EBITDA |
1,543 |
|
2,087 |
|
1,788 |
|
Impairment charges (reversals)
of long-lived assetsb |
2 |
|
14 |
|
(89 |
) |
Acquisition/disposition
(gains) lossesc |
(2 |
) |
(198 |
) |
(3 |
) |
Loss on currency
translation |
3 |
|
13 |
|
4 |
|
Other expense
adjustmentsd |
13 |
|
36 |
|
11 |
|
Income
tax expense, net finance costs, and depreciation from equity
investees |
86 |
|
118 |
|
89 |
|
Adjusted EBITDA |
1,645 |
|
2,070 |
|
1,800 |
|
- Finance costs exclude
accretion.
- For the three month period ended
March 31, 2022, we recorded no significant impairment charges or
reversals. Net impairment reversals for the three months ended
March 31, 2021 mainly relate to non-current asset reversals at
Lagunas Norte.
- There were no significant
acquisition/disposition gains or losses for the three months ended
March 31, 2022. Acquisition/disposition gains for the three month
period ended December 31, 2021 primarily relate to the gain on the
divestiture of Lone Tree.
- Other expense adjustments for all
periods mainly relate to care and maintenance expenses at Porgera.
The three month period ended December 31, 2021 was further impacted
by a $25 million litigation settlement.
Corporate Office
Barrick Gold Corporation161 Bay
Street, Suite 3700Toronto, Ontario M5J 2S1Canada
Telephone: +1 416 861-9911Email:
investor@barrick.comWebsite: www.barrick.com
Shares Listed
GOLD The New York Stock
Exchange
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”,
“anticipate”, “contemplate”, “goal”, “target”, “plan”, “strategy”,
“opportunities”, “guidance”, “outlook”, “project”, “continue”,
“committed”, “budget”, “estimate”, “forecast”, “potential”,
“proposed”, “future”, “prospective”, “focus”, “during”, “ongoing”,
“following”, “subject to”, “scheduled”, “will”, “could”, “would”,
“should” 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 Asia Pacific region, North
Africa and the Middle East, Latin America and Canada; the timeline
and process for the execution and legalization of definitive
agreements and 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
and governance terms applicable to the Reko Diq project and the
joint venture through which it is held; the duration of the
temporary suspension of operations at Porgera, the conditions for
the reopening of the mine and the timeline to recommence
operations; our plans and expected completion and benefits of our
growth projects, including the Pueblo Viejo plant expansion and
mine life extension project; Barrick’s strategy, plans, targets and
goals in respect of environmental and social governance issues,
including local community relations, climate change, greenhouse gas
emissions reduction targets (including with respect to our Scope 3
emissions), tailings storage facility management (including the new
Tailings Storage Facility at Pueblo Viejo) and biodiversity
initiatives in our local communities; plans to repurchase Barrick
shares pursuant to the share buyback program, which does not
obligate the Company to acquire any particular number of common
shares and which may be suspended or discontinued at any time at
the Company’s discretion; 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;
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, including the mining lease and exploration license for
the Reko Diq project; 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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