Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) – With the potential
embedded in its growth project portfolio, Barrick plans to double
its copper production by the end of the decade and continue to
increase it to an estimated 1 billion pounds or 450,000 tonnes of
copper per annum by 2031, says president and chief executive Mark
Bristow.1
Speaking to investors on an update call, Bristow
said this substantial growth in copper production combined with the
output from Barrick’s sector-leading gold portfolio was expected to
increase the group’s attributable production by some 30% to 6.8
million gold-equivalent ounces by 2031.1,2
“The value of these projects, and in particular
of our substantial and growing copper business, is currently
underestimated by the market. If it was properly appreciated,
Barrick would be commanding a premium to our peers,” he said.
Reko Diq in Pakistan is positioned to rank as
one the world’s top 10 copper mines when it reaches full production
and the pre-feasibility study on the Lumwana Super Pit Expansion is
projected to deliver a potential of 240,000 tonnes of copper
production per annum from a 50 million tonne process plant
expansion over a 36-year life of mine.3,5 The accelerated
Lumwana work program is now targeting to complete a full
feasibility study by the end of 2024, which brings forward our
expected production from the Super Pit to 2028. The Reko Diq
project also remains on track to deliver an updated feasibility
study by the end of 2024. Together, the Reko Diq and Lumwana Super
Pit feasibility studies will underpin potential reserve updates and
the transition to construction.
“Within our gold growth portfolio, the
wholly-owned Fourmile project is a best-in-class development
project located in the world’s most prolific gold district adjacent
to existing infrastructure, with ongoing drilling demonstrating
significant potential to increase in grade and size. Accordingly,
we are assessing options for independent exploration decline access
in support of a pre-feasibility study, which would later be
re-utilised for development and production complementing the
current Goldrush development. The results of our preliminary
economic assessment indicate that this could support a potential
production profile of 300,000–400,000 ounces per annum, over and
above the existing Cortez profile of 950,000–1.2 million ounces per
year (100% basis) over 10 years,” says mineral resource management
and evaluation executive Simon Bottoms.1,6
Bristow said Nevada Gold Mines, the world’s
largest gold mining complex, was expected to grow its annual
production to 3.7 million ounces (100% basis) towards the end of
the decade driven by our three Tier One assets and near-mine
exploration pointed to the extension of that horizon to 15 years
and beyond. 1,7
In the Carlin District, the current 10-year
production profile is expected to be between 1.4–1.6 million ounces
per year (100% basis) and we have identified an exciting potential
high-grade opportunity at Horsham on the northeast side of the
known high-grade controlling structures in the Leeville Complex
that we will advance over the next few years and is expected to
extend this profile well past the 10-year window.1
Similarly at Turquoise Ridge, we expect to build
on the already significant reserves and resources base with
multi-million ounce potential growth opportunities at Cricket
Corridor to the east, BBT Corridor to the south, and Getchell Fault
zone to the west. This will potentially further add to the existing
10-year production profile of 550,000–700,000 ounces per year (100%
basis).1
In Latin America, the Pueblo Viejo expansion
project is transforming a Tier One mine headed for closure into a
long-life, low-cost producer.8 While in Papua New Guinea, we
are working towards the restart of Porgera by the end of this year,
and restarted drilling will target the resource definition of the
Wangima Pit, with similar geology to the existing underground and
open pit, which has the potential to underpin an approximately
twenty year mine life.9
“The Africa and Middle East region, our most
consistent production and reserve replacement performer, now also
presents us with the exciting growth opportunities as we leverage
our partnership model in Tanzania and Saudi Arabia,” Bristow
said.
See Appendix A for additional details on the
growth studies underway for the Reko Diq project, Lumwana Super Pit
Expansion project, Fourmile project, and the Porgera mine.
Enquiries:
President and CEOMark Bristow+1 647 205 7694+44
788 071 1386
Senior EVP and CFOGraham Shuttleworth+1 647 262
2095+44 779 771 1338
Investor and Media RelationsKathy du Plessis+44
20 7557 7738Email: barrick@dpapr.com
Website: www.barrick.com
Appendix A
Reko Diq Study Snapshot
(100%)3 |
Mine Life (yrs) |
42 |
Mineral Resource3(100%
basis) |
M&I: 3.8Bt @ 0.44% Cu for 17Mt CuINF:
1.2Bt @ 0.4% Cu for 4.2Mt Cu |
|
Phase 1 |
Phase 2 |
Throughput (Mtpa) |
40 (2028 – 2033) |
80 (2034 onwards) |
Average Annual Production |
|
|
Copper (kt)i |
250ii |
400ii |
Gold (koz)i |
300ii |
500ii |
Average Annual Total Tonnes Mined (TTM) (Mt) |
100ii |
200ii |
Strip Ratio |
0.4ii |
1.0ii |
Construction Capital
($bn)12 |
Approx. 5.0 – 5.5 |
Approx. 3.2 – 3.5 |
Cost of Sales ($/lb)4 |
Approx.1.2 – 1.3 |
Approx.1.1 – 1.2 |
AISC
($/lb)4,11 |
Approx.1.2 – 1.3 |
Approx.1.1 – 1.2 |
C1 Costs ($/lb)4,11 |
Approx. 0.8 – 0.9 |
Approx. 0.7 – 0.8 |
-
96.5% of Annual Copper production and 94% of Annual Gold production
from the concentrate is assumed to be payable under industry
standard smelting and refining terms.
- Indicative gold
and copper recovered production profile from Reko Diq, which is
conceptual in nature. Subject to change following an updated
feasibility study.
Lumwana Study
Snapshot5 |
Mineral Resource5(100%
attrib.) |
M&I:: 1.1Bt @ 0.54% Cu for 6.0Mt CuINF:
0.8Bt @ 0.5% Cu for 4.0Mt Cu |
|
Current |
Super Pit |
Mine Life (yrs) |
19 |
36ii |
Throughput (Mtpa) |
26-28 |
50 |
Avg Annual Cu Produced (kt) 100%
basisi |
150 |
240ii |
Average Annual TTM (Mt) |
110 |
250ii |
Life of Mine Strip Ratio |
3.4 |
4.3ii |
Construction Capital
($bn)12 |
N/A |
Approx. 1.6-1.9(2024 – 2028) |
Cost of Sales ($/lb) |
2.2 |
Approx. 2.1 – 2.4 |
LOM AISC
($/lb)11 |
2.3 |
Approx.1.9 – 2.2 |
LOM C1 Costs ($/lb)11 |
1.9 |
Approx. 1.8 – 2.1 |
-
96.5% of Annual Copper production from the concentrate is assumed
to be payable under industry standard smelting and refining
terms.
-
Indicative copper production profile from Lumwana, which is
conceptual in nature. Subject to change following completion of the
pre-feasibility study.
Fourmile Conceptual PEA Study
Snapshot6 |
Mineral Resource6(100%
attrib.) |
M&I: 0.49Moz @ 10g/tINF: 2.7Moz @
10.5g/t |
Exploration Upsidei |
13 – 20Mt @ 13.3 – 20.0g/t |
Mine Life (yrs) |
+15ii |
Ore tonnes (ktpa) |
600 – 1,500ii |
Average annual gold production (Koz) |
300 – 400ii |
Construction Capital ($bn)12 |
Approx. 0.8 – 1.1 |
Cost of Sales ($/oz) |
Approx. 700 – 900 |
AISC ($/oz)10 |
Approx. 700 – 900 |
-
Potential quantities and grades in these preliminary results are
conceptual in nature and there has been insufficient exploration to
define a mineral resource at this time and it is uncertain that
further exploration will result in the target being delineated as a
mineral resource.
-
Indicative gold production profile from Fourmile which is
conceptual in nature. Subject to change following completion of the
pre-feasibility study.
Porgera Conceptual PEA Study Snapshot
(100%)9 |
Mineral Resource9(100%
basis) |
M&I: 10.2Moz Au @ 3.8g/tINF: 3.4Moz Au
@ 3.2g/t |
Exploration Upsidei |
30 – 50Mt @ 2.5 – 3.3g/t |
Mine Life (yrs) |
20ii |
Ore tonnes (ktpa) |
5,650 – 6,200ii |
Average annual gold production (Koz) |
650 – 750ii |
Expansion Capital ($bn)12 |
Approx. 0.9 – 1.1iii |
Cost of Sales ($/oz) |
Approx. 800 – 1,000 |
AISC ($/oz)10 |
Approx. 700 – 900 |
-
Potential quantities and grades in these preliminary results are
conceptual in nature and there has been insufficient exploration to
define a mineral resource at this time and it is uncertain that
further exploration will result in the target being delineated as a
mineral resource.
-
Indicative gold production profile from Porgera (100% basis)
which is conceptual in nature and is subject to change following
completion of a pre-feasibility study.
-
65% of expansion capital is planned during 2024-2028 and 25% during
2029-2033.
Appendix B – Outlook
Assumptions
Key assumptions |
2023 |
2024 |
2025+ |
Gold Price ($/oz) |
1,900 |
1,300 |
1,300 |
Copper Price ($/lb) |
3.50 |
3.00 |
3.00 |
Oil Price (WTI) ($/barrel) |
90 |
70 |
70 |
AUD Exchange Rate (AUD:USD) |
0.75 |
0.75 |
0.75 |
ARS Exchange Rate (USD:ARS) |
230 |
230 |
230 |
CAD Exchange Rate (USD:CAD) |
1.30 |
1.30 |
1.30 |
CLP Exchange Rate (USD:CLP) |
800 |
900 |
900 |
EUR Exchange Rate (EUR:USD) |
1.10 |
1.20 |
1.20 |
- Barrick’s
five-year indicative base case outlook is based on our current
operating asset portfolio, sustaining projects in progress and
exploration/mineral resource management initiatives in execution.
Our outlook is based on our current reserves and resources as
disclosed in our Q4 2022 report and assumes that we will continue
to be able to convert resources into reserves. Additional asset
optimization, further exploration growth, new project initiatives
and divestitures are not included. For the group gold and copper
segments, and where applicable for a specific region, our
indicative outlook is subject to change and assumes the following:
- New open pit
production permitted and commencing at Hemlo in the second half of
2025, allowing three years for permitting and two years for
pre-stripping prior to first ore production in 2027.
- Production from
the proposed Pueblo Viejo plant expansion and tailings facility
project starting in 2023.
- Tongon will
enter care and maintenance by 2026.
- Production
attributable to Porgera is based on the assumption that the mine’s
current care and maintenance status will be temporary, and that the
suspension of operations will not have a significant impact on
Barrick’s future production.
- Our five-year
indicative base case outlook excludes:
- Production from
Fourmile.
- Production from
Pierina and Golden Sunlight, which are currently in care and
maintenance.
- Production from
long-term greenfield optionality from Donlin, Pascua-Lama, Norte
Abierto or Alturas.
-
Barrick’s ten-year base case production profile
is subject to change and are based on the same
assumptions as the current five-year outlook detailed above, except
that the next five years of the ten-year outlook assume
attributable production from exploration and mineral resource
management projects in execution at Nevada Gold Mines and
Hemlo.
- Barrick’s
five-year and ten-year production profile in this presentation also
assumes the re-start of Porgera, as well as an indicative gold and
copper production profile for Reko Diq and an indicative copper
production profile for the Lumwana Super Pit expansion, both of
which are conceptual in nature.
- Barrick's
15-year production profile for Nevada Gold Mines is based on the
same assumptions as the ten-year base case production profile
detailed above.
Technical Information
The scientific and technical information
contained in this press release has been reviewed and approved by
Craig Fiddes, SME-RM, Lead, Resource Modeling, Nevada Gold Mines;
Chad Yuhasz, P.Geo, Mineral Resource Manager, Latin America &
Asia Pacific; Richard Peattie, MPhil, FAusIMM, Mineral Resources
Manager: Africa and Middle East; Simon Bottoms, CGeol, MGeol, FGS,
FAusIMM, Mineral Resource Management and Evaluation Executive; John
Steele, CIM, Metallurgy, Engineering and Capital Projects
Executive; and Joel Holliday, FAusIMM, Executive Vice-President,
Exploration — each a “Qualified Person” as defined in National
Instrument 43-101 - Standards of Disclosure for Mineral Projects.
All mineral reserve and mineral resource estimates are estimated in
accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects.
Unless otherwise noted, such mineral reserve and
mineral resource estimates are as of December 31, 2022.
Endnotes
- See Appendix B – Outlook
Assumptions.
- Gold Equivalent Ounces from copper
assets are calculated using a gold price of $1,300/oz and a copper
price of $3.00/lb.
- Barrick holds a 50% ownership
interest in the Reko Diq project following the completion
of the transaction allowing for the reconstitution of the project
on December 15, 2022. This completed the process that began earlier
in 2022 following the conclusion of a framework agreement
among the Governments of Pakistan
and Balochistan province, Barrick and Antofagasta plc,
which provided a path for the development of the project under
a reconstituted structure. The remaining 50% of the
reconstituted project is held by Pakistani stakeholders. Barrick is
the operator of the project.Reko Diq mineral resources
are estimated in accordance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects as required by
Canadian securities regulatory authorities. Estimates are as of
December 31, 2022, unless otherwise noted. Attributable
Indicated resources of 1,800 tonnes grading 0.26 g/t,
representing 15 million ounces of gold, and 1,900 million tonnes
grading 0.44%, representing 18,000 million pounds of copper.
Inferred resources of 570 tonnes grading 0.2 g/t, representing
3.7 million ounces of gold, and 590 million tonnes grading
0.4%, representing 4,600 million pounds of copper. Complete mineral
reserve and mineral resource data for all mines and projects
referenced in this presentation, including tonnes, grades, pounds,
and ounces, can be found on pages 33-46 of Barrick’s 2022 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.
- Reko Diq “Cost of Sales” per pound
Cu “C1 cash costs” per pound Cu and “All-in sustaining costs” per
pound Cu are reported inclusive of by-product credit for gold
production based upon long term reserve prices of $1,300/oz Au and
$3.00/lb Cu.
- Lumwana financial metrics and
production metrics are based upon a preliminary economic assessment
which is preliminary in nature because it includes inferred
mineral resources that are considered too speculative geologically
to have the economic considerations applied to them that would
enable them to be categorized as mineral reserves, and there is no
certainty that the preliminary economic assessment will be
realized. The preliminary economic assessment for
Lumwana Super Pit is based upon a $3.00/lb whittle pit shell.
The assumptions outlined within the preliminary economic assessment
have formed the basis for the ongoing pre-feasibility study and are
made by the qualified person.Lumwana mineral resources are
estimated in accordance with National Instrument 43-101 - Standards
of Disclosure for Mineral Projects as required by Canadian
securities regulatory authorities. Estimates are as
of December 31, 2022, unless otherwise noted.
Attributable Measured resources of 140 million tonnes grading
0.48%, representing 1,500 million pounds of copper, Indicated
resources of 960 million tonnes grading
0.55%, representing 12,000 million pounds of copper, and 1,100
million tonnes grading 0.44%, representing 18,000 million
pounds of copper. Inferred resources of 820 million tonnes
grading 0.5 %, representing 8,700 million
pounds of copper. Complete mineral reserve and mineral
resource data for all mines and projects referenced in this
presentation, including tonnes, grades, pounds, and ounces, can be
found on pages 33-46 of Barrick’s 2022 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.
- Fourmile financial metrics and
production metrics are based upon preliminary economic
assessment which is preliminary in nature because it includes
inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves, and there is no certainty that the preliminary economic
assessment will be realized. The preliminary economic
assessment for Fourmile is based upon $1,300/oz mineable
stope optimizer. The assumptions outlined within the preliminary
economic assessment have formed the basis for the
ongoing study and are made by the qualified
person. Fourmile is currently 100% owned by Barrick. As
previously disclosed, Barrick anticipates Fourmile being
contributed to the Nevada Gold Mines joint venture if certain
criteria are met following the completion of drilling and the
requisite feasibility work.Fourmile mineral resources are estimated
in accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects as required by Canadian securities
regulatory authorities. Estimates are as of December 31, 2022,
unless otherwise noted. Indicated resources of 1.5 million tonnes
grading 10.01 g/t, representing 0.49 million ounces of gold, and
Inferred resources of 7.8 million tonnes grading 10.5 g/t,
representing 2.7 million ounces of gold, Complete mineral
reserve and mineral resource data for all mines and projects
referenced in this presentation, including tonnes, grades, pounds,
and ounces, can be found on pages 33-46 of Barrick’s 2022 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.
- A Tier One Gold Asset is an asset
with a $1,300/oz reserve potential to deliver a minimum 10-year
life, annual production of at least 500,000 ounces of gold and with
all in sustaining costs per pound in the lower half of the industry
cost curve. A Tier One Copper Asset is an asset with a $3.00/lb
reserve with potential for +5Mt contained copper in support of at
least 20 years life, annual production of at least 200ktpa, with
all in sustaining costs per pound in the lower half of the industry
cost curve. A Tier Two Gold Asset is an asset with a reserve
potential to deliver a minimum 10-year life, annual production of
at least 250,000 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 Strategic Asset is an asset which in the opinion of
Barrick, has the potential to deliver significant unrealized value
in the future.
- Refer to the Technical Report on
the Pueblo Viejo Mine, Dominican Republic, dated March 17, 2023 and
filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov on March
17, 2023.
- Porgera financial metrics and
production metrics are based upon a preliminary economic assessment
which is preliminary in nature because it includes inferred
mineral resources that are considered too speculative geologically
to have the economic considerations applied to them that would
enable them to be categorized as mineral reserves, and there is no
certainty that the preliminary economic assessment will be
realized. The preliminary economic assessment for Porgera is based
upon a $1,300/oz Au whittle pit shell. The assumptions outlined
within the preliminary economic assessment have formed the basis
for the ongoing pre-feasibility study and are made by the qualified
person.Porgera mineral resources are estimated in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects as required by Canadian securities regulatory authorities.
Estimates are as of December 31, 2022, unless otherwise noted.
Attributable Measured resources of 1.4 million tonnes grading
5.55g/t, representing 0.25 million ounces of gold, Indicated
resources of 19 million tonnes grading 3.62g/t, representing 2.3
million ounces of gold. Inferred resources of 8 million tonnes
grading 3.2g/t, representing 0.82 million ounces of gold. Complete
mineral reserve and mineral resource data for all mines and
projects referenced in this presentation, including tonnes, grades,
pounds, and ounces, can be found on pages 33-46 of Barrick’s 2022
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.
- “Total cash costs” per ounce,
“All-in sustaining costs” per ounce and "All-in costs" per ounce
are non-GAAP financial 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 mine site
sustaining capital expenditures, sustaining leases, general and
administrative costs, mine site 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 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 including a detailed
reconciliation of this non-GAAP financial measure to its most
directly comparable GAAP measure are incorporated by reference and
provided on pages 60-72 of the MD&A accompanying Barrick’s
second quarter 2023 financial statements filed on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
- “C1 cash costs” per pound and
“All-in sustaining costs” per pound are non-GAAP financial
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
including a detailed reconciliation of this non-GAAP financial
measure to its most directly comparable GAAP measure are
incorporated by reference and provided on pages 72-73 of the
MD&A accompanying Barrick’s second quarter 2023 financial
statements filed on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
- These amounts are presented on the
same basis as our guidance. Minesite sustaining capital
expenditures and project capital expenditures are non-GAAP
financial measures. 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.
Further details including a detailed reconciliation of this
non-GAAP financial measure to its most directly comparable GAAP
measure are incorporated by reference and provided on page 59
of the MD&A accompanying Barrick’s second quarter 2023
financial statements filed on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov.
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 “expect”, “target”, “plan”,
“opportunities”, “outlook”, “on track”, “project”, “continue”,
“growth”, “potential”, “upside”, “future”, “ongoing”, “expected”,
“scheduled”, “will”, “can”, “could”, 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, including estimated 10- and 15-year production including
for Nevada Gold Mines, Reko Diq, the Lumwana Super Pit and Porgera,
and anticipated production growth from Barrick’s organic project
pipeline and reserve replacement; estimates of future costs and
projected future cash flows, capital, operating and exploration
expenditures and mine life and production rates including for the
Fourmile project, Lumwana Super Pit, Reko Diq project and Porgera
mine; our ability to convert resources into reserves and replace
reserves net of depletion from production; mine life and production
rates; our plans and expected completion and benefits of our growth
projects, including the Fourmile project, Lumwana Super Pit, Reko
Diq, the Pueblo Viejo plant expansion and mine life extension
project and the restart of Porgera; the planned updating of the
historical Reko Diq feasibility study and targeted first
production; the duration of the temporary suspension of operations
at Porgera and the timeline to recommence operations; anticipated
drilling and pre-feasibility study work at Porgera; Lumwana’s
ability to further extend its life of mine through the development
of a Super Pit and targeted completion of the pre-feasibility study
and first production; Barrick’s global exploration strategy and
planned exploration activities, including in North America, Latin
America, Africa and the Middle East, and Asia Pacific Regions;
Barrick’s copper strategy; our pipeline of high confidence projects
at or near existing operations, including potential new discoveries
in Nevada; potential mineralization and metal or mineral
recoveries, including near-mine exploration upside potential; joint
ventures and partnerships; and expectations regarding future price
assumptions, financial performance and other outlook or
guidance.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: fluctuations in the spot
and forward price of gold, copper or certain other commodities
(such as silver, diesel fuel, natural gas and electricity); risks
associated with projects in the early stages of evaluation and for
which additional engineering and other analysis is required; risks
related to the possibility that future exploration results will not
be consistent with the Company’s expectations, that quantities or
grades of reserves will be diminished, and that resources may not
be converted to reserves; risks associated with the fact that
certain of the initiatives described in this press release are
still in the early stages and may not materialize; changes in
mineral production performance, exploitation and exploration
successes; risks that exploration data may be incomplete and
considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; the speculative nature of
mineral exploration and development; lack of certainty with respect
to foreign legal systems, corruption and other factors that are
inconsistent with the rule of law; changes in national and local
government legislation, taxation, controls or regulations and/or
changes in the administration of laws, policies and practices; the
potential impact of proposed changes to Chilean law on the status
of value added tax refunds received in Chile in connection with the
development of the Pascua-Lama project; expropriation or
nationalization of property and political or economic developments
in Canada, the United States or other countries in which Barrick
does or may carry on business in the future; risks relating to
political instability in certain of the jurisdictions in which
Barrick operates; timing of receipt of, or failure to comply with,
necessary permits and approvals including the issuance of a Record
of Decision for the Goldrush Project and/or whether the Goldrush
Project will be permitted to advance as currently designed under
its Feasibility Study, the environmental license for the
construction and operation of the El Naranjo tailings storage
facility for Pueblo Viejo, and permitting activities required to
optimize Long Canyon’s life of mine; non-renewal of or failure to
obtain key licenses by governmental authorities, including the new
special mining lease for Porgera; failure to comply with
environmental and health and safety laws and regulations; increased
costs and physical and transition risks related to climate change,
including extreme weather events, resource shortages, emerging
policies and increased regulations relating to related to
greenhouse gas emission levels, energy efficiency and reporting of
risks; 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; 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, including
disruptions in the supply of key mining inputs due to the invasion
of Ukraine by Russia; risk of loss due to acts of war, terrorism,
sabotage and civil disturbances; risks associated with artisanal
and illegal mining; risks associated with Barrick’s infrastructure,
information technology systems and the implementation of Barrick’s
technological initiatives, including risks related to
cyber-attacks, cybersecurity breaches, or similar network or system
disruptions; 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, global
energy cost increases following the invasion of Ukraine by Russia
and country-specific political and economic factors in Argentina;
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 2023 guidance and 10- and
15-year production outlooks may be impacted by the ongoing business
and social disruption caused by the spread of Covid-19. In
addition, there are risks and hazards associated with the business
of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion, copper
cathode or gold or copper concentrate losses (and the risk of
inadequate insurance, or inability to obtain insurance, to cover
these risks).
Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us. Readers
are cautioned that forward-looking statements are not guarantees of
future performance. All of the forward-looking statements made in
this press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
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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