Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) was on track to achieve annual production within its 2020 guidance range, despite the impact of the Covid-19 pandemic, the company said today. Second quarter results show year-to-date gold production
Q2Report
SOLID OPERATING PERFORMANCE MAINTAINS PRODUCTION WITHIN GUIDANCE
ALL AMOUNTS EXPRESSED IN US DOLLARS GUIDANCE MAINTAINED Toronto, August 10, 2020 — At the year’s halfway mark, Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) was on DESPITE COVID-19 CHALLENGES track to achieve annual production within its 2020 guidance range, despite the impact of the Covid-19 pandemic, the company said today.
h16%* OPERATING CASH FLOW TO $1.0 BILLION Second quarter results show year-to-date gold production FREE CASH FLOW h19%* TO $522 MILLION of 2.4 million ounces, at the mid-point of its 4.6 million to 5 million ounce annual guidance, driven by strong operating performances, particularly from Nevada Gold Mines (NGM)
in the United States, Loulo-Gounkoto in Mali and Kibali in the Democratic Republic of Congo. Barrick’s copper ALMOST
DEBT
portfolio continued to outperform with Lumwana in Zambia %* posting its best quarterly production in years. NET OF CASH TO $1.4 BILLION
Operating cash flow exceeded $1 billion for the quarter and free cash flow1 was $522 million. Net earnings per share was 20 cents. Adjusted net earnings per share2 was 23 cents, up the end of Q1, and the quarterly dividend was increased NET EPS2h44 44% from Q1 and well ahead of the market consensus, debt NET EPS %* ADJUSTED 20 CENTS net of cash was reduced by almost 25% to $1.4 billion from TO 23 CENTS
by 14% to 8 cents per share. The quarterly dividend has more than doubled since the announcement of the merger between Barrick and Randgold in September 2018. The DIVIDEND h PER SHARE non-core asset disposal strategy, which is ongoing, has so QUARTERLY %* TO 8 CENTS far delivered value of $1.5 billion of which $1.25 billion was in cash.
CONTINUED ON PAGE 3
- QUARTER ON QUARTER
4 5 6 7 PROMPT AND TANZANIA EXPLORATION A NEW EFFECTIVE REBUILDS MAINTAINS GENERATION OF PANDEMIC OPERATIONS FOCUS ON LEADERS RESPONSE FUTURE
Key Performance Indicators
Financial and Operating Highlights
- Continued solid performance positions Barrick well within annual production guidance, despite
| Financial Results | Q2 2020 | Q1 2020 Q2 2019 |
|---|---|---|
| Realized gold price3,4 ($ per ounce) Net earnings5 ($ millions) Adjusted net earnings2 ($ millions) Net cash provided by operating activities ($ millions) Free cash flow1 ($ millions) Net earnings per share ($) Adjusted net earnings per share2 ($) Attributable capital expenditures6 ($ millions) | 1,725 | 1,589 1,317 400 194 285 154 889 434 438 55 0.22 0.11 0.16 0.09 364 361 |
| 357 | ||
| 415 | ||
| 1,031 | ||
| 522 | ||
| 0.20 | ||
| 0.23 | ||
| 402 | ||
| Operating Results Gold | Q1 2020 Q2 2019 | |
| Q2 2020 | ||
| Production4 (000s of ounces) Cost of sales (Barrick's share)4,7 ($ per ounce) Total cash costs4,8 ($ per ounce) All-in sustaining costs4,8 ($ per ounce) Copper | 1,149 | 1,250 1,353 1,020 964 692 651 954 869 |
| 1,075 | ||
| 716 | ||
| 1,031 | ||
| Production9 (millions of pounds) Cost of sales (Barrick's share)9,10 ($ per pound) C1 cash costs8,9 ($ per pound) All-in sustaining costs8,9 ($ per pound) | 120 | 115 97 1.96 2.04 1.55 1.59 2.04 2.28 |
| 2.08 1.55 | ||
| 2.15 |
Covid-19 challenges
- Improvement in safety management following increased focus
- Strong cash generation highlights quality of assets and leverage to gold price
- Barrick continues to be vigilant in its approach to contain the impact of Covid-19
- Higher gold prices also result in higher royalty payments and costs
- Strong operating performance for copper with costs per pound at lower end of the guidance range
- Operating Cash Flow in excess of $1.0 billion and Free Cash Flow1 greater than $0.5 billion for the quarter
- Net debt down almost 25% to $1.4 billion with no significant maturities until 2033
- Net earnings per share of 20 cents; adjusted net earnings per share2 up 44% to 23 cents for the quarter
- Strong operating performance from Tier One12 assets, with Pueblo Viejo production impacted by planned maintenance shutdown
- Veladero production impacted by Argentina’s Covid-19 movement and social distancing restrictions
- 30% of stockpiled concentrate shipped from Tanzania and first $100 million paid to Government
Q2 2020 Results Presentation
- Agreement reached in Mali to extend the Loulo
Webinar and Conference Call
convention to 2038
President and CEO Mark Bristow will host an interactive webinar ▪ Significant exploration drill results from Nevada, on the results today at 11:00 EDT / 15:00 UTC. The presentation Dominican Republic, Mali and Tanzania will be linked to the webinar and conference call.
- Pueblo Viejo expansion, Goldrush development,
Go to the webinar Turquoise Ridge shaft and other key projects US and Canada (toll-free) 1 800 319 4610 remain on track despite Covid-19 challenges UK (toll-free) 0808 101 2791 International (toll) +1 416 915 3239
- Non-core asset disposal strategy delivers $1.5 billion value realization, including $1.25 billion
The Q2 2020 presentation materials will be available on in cash, with more to come Barrick’s website at www.barrick.com and the webinar will remain on the website for later viewing.
- Barrick increases quarterly dividend by 14% to $0.08 per share
BARRICK SECOND QUARTER 2020 2 PRESS RELEASE
CONTINUED FROM PAGE 1 in real time, while at the restructured Hemlo in Canada, exploration was indicating support for extending the Life of President and chief executive Mark Bristow said the strong Mine beyond 10 years at a production profile of around cash generation demonstrated the quality of Barrick’s assets, 220,000 ounces per year.
management’s ability to capture the full benefit of higher gold prices, effective operational execution and the group’s deft In the Africa and Middle East region, Loulo-Gounkoto and handling of the Covid-19 pandemic’s impact.
Kibali were also at the upper end of their guidance. The Tanzanian assets are still being resuscitated but exports of the “Our flattened and decentralized management structure was a stockpiled concentrate have resumed and the Bulyanhulu major factor in contending with Covid-19 while at the same underground operation is being recommissioned. Bristow said time continuing to meet short-term targets and making between them, North Mara and Bulyanhulu were capable of significant progress towards our strategic objectives. Our major producing more than 500,000 ounces annually for at least 10 projects, including the expansion of Pueblo Viejo, the Goldrush years.13 development and the Turquoise Ridge shaft, remain on track.
The only exception was Veladero, where the heap leach and In Latin America, Pueblo Viejo’s production was down as cross-border Chilean power line projects were impacted by the expected due to a planned plant maintenance shutdown, while Argentine government’s pandemic quarantine restrictions,”
production and costs at Veladero were impacted by a Bristow said.
nationwide quarantine and severe winter weather.
“We also maintained our strong environmental, social and Porgera in Papua New Guinea remains on care and governance focus during this difficult period. The Lost Time maintenance while the issue of its Special Mining Lease is Injury Frequency Rate decreased by 15.6% quarter on quarter, before the court.
and we further reduced our carbon emissions and continued to improve our water recycling and reuse performance.”
Bristow said during the quarter there had been significant exploration results from Nevada, the Dominican Republic, Mali Dealing with the operations, Bristow said in North America, and Tanzania, and the expectation was to add significant NGM led by Cortez trended towards the upper end of its mineral resources at most operations this year.
guidance as the integrated structure allowed the management team to adjust ore routing through Carlin’s processing facilities
QUARTERLY DIVIDEND INCREASED BY 14%
Barrick’s Board of Directors has declared a dividend for the QUARTERLY DIVIDEND PER SHARE second quarter of 2020 of $0.08 per share, a 14% increase on the previous quarter’s dividend, payable on September 15, 2020, to shareholders of record at the close of business on August 31, 2020.14
Senior executive vice-president and chief financial officer Graham Shuttleworth says that Barrick’s quarterly dividend has more than doubled since the announcement of the Barrick- Randgold merger in September 2018, reflecting Barrick’s continued strong financial performance.
“The Board believes that the dividend increase is sustainable and reflects the ongoing robust performance of our operations and continued improvement in the strength of our balance sheet, with total liquidity of $6.7 billion, including a cash balance of $3.7 billion at the end of the second quarter, and no The Q2 2020 dividend of $0.08 is a 14% increase on the previous quarter. material debt repayments due before 2033,” said Shuttleworth.
BARRICK SECOND QUARTER 2020 3 PRESS RELEASE
STRONG STRUCTURE, PARTNERSHIP CULTURE DRIVE PROMPT AND EFFECTIVE PANDEMIC RESPONSE
A fit-for-purpose management structure coupled with its deeply embedded health and welfare commitment enabled Barrick to buffer the impact of the Covid-19 pandemic on its business, people and communities as well as to provide vital support to its host governments.
chosen not to take up the option of deferring payroll tax payments amounting to $40 million. Deferral of these payments is allowed under US legislation aimed at supporting businesses through the pandemic.
“We recognize the importance our tax contribution makes to Nevada’s economy and NGM is stepping up to support the state at a time when other businesses there find themselves in financial distress,” says Bristow.
“In Nevada, as elsewhere in our global operations, our aid has Barrick has provided more than $20 million in support to its host communities, not been prompted by self-interested commercial considerations, much of it in the form of medical supplies and equipment.
but by Barrick’s foundational philosophy of partnership, which in this time of crisis has again demonstrated its value to our President and chief executive Mark Bristow says the company’s stakeholders.”
flattened and regionally devolved management formation provided the ideal platform for immediate site-appropriate action Beringer notes that Barrick operates in 12 countries, each with and swift engagement with local stakeholders.
its own culture and at different stages of economic development. Consequently, aid was tailored to their particular needs in “Caring for the wellbeing of our employees and communities is a consultation with their governments.
key characteristic of the Barrick DNA. Our financial strength, well-established prevention practices and procedures, and the “In Latin America, support has been focused on infrastructural experience we gained from dealing with two Ebola pandemics and equipment needs. In Africa, the emphasis has been on around our African operations stood us in good stead as we improving existing healthcare facilities and capacity. Where faced this new and unprecedented challenge,” he says.
financial donations were made, we engaged thoroughly with the governments to identify specific requirements and assisted them “At all our sites, strict access, screening, sanitation and isolation in sourcing equipment and supplies. In the DRC, we converted measures were implemented and through our community Kibali’s Ebola isolation centre into a 100-patient Covid-19 engagement channels, we also took the lead in introducing these treatment facility tailored to government guidelines. In North protocols, supported by education programs, to our neighbours.
America we sought to stimulate local economies, for example by The provision of rapid antibody testing kits to local clinics and donating vouchers to employees that are only redeemable at hospitals was particularly valuable in helping them to manage stores and service providers in the local community. NGM has the pandemic’s initial onslaught.”
also established a fund to help local businesses impacted by the pandemic,” he says.
Barrick’s group sustainability executive, Grant Beringer, says that to date the company has provided more than $20 million in “The commitments our sites made to community investment and support to its host communities, much of it in the form of medical development prior to the Covid-19 outbreak remain intact and supplies and equipment. In addition, some of its businesses are being fulfilled in conjunction with our pandemic support have prepaid taxes to ease the pandemic’s pressure on their programs. These include major projects such as the Durba road host countries’ economies.
in the DRC and the shift to local contractors and suppliers in Tanzania.”
In the Dominican Republic, Pueblo Viejo prepaid $113 million to the tax authorities, bringing its total tax payments to the At the group level, all Barrick’s significant expansion projects government to more than $2 billion since 2013. In Mali, the remain on track, with internal teams having been trained to Loulo-Gounkoto complex made an early tax and royalty payment lessen reliance on external contractors. Among these are the of $20 million and in Côte d’Ivoire, Tongon prepaid $5 million. In solar power programs in West Africa and Nevada, the expansion Nevada, the state legislature has approved an offer by Nevada of Pueblo Viejo in the Dominican Republic, the Bulyanhulu Gold Mines (NGM) to prepay net proceeds tax as a Covid-19 underground project in Tanzania, and the Goldrush and relief measure. Under this arrangement, NGM expects to pay Turquoise Ridge developments in Nevada.
$170 million to the state by March 2021. In addition, NGM has
BARRICK SECOND QUARTER 2020 4 PRESS RELEASE
TANZANIA MINES FOCUS ON SOCIAL LICENSE AND REBUILDING MINING OPERATIONS
When Barrick took over the Acacia assets in Tanzania in September last year, it was faced with a clean- up of Herculean proportions:
- Relations between the former management and the confirmed the acquisition assumptions and upside, was government as well as the community had broken down completed. Ten new exploration permits around North Mara have completely. also been awarded by the government.
- North Mara had been closed under an environmental A study on restarting the Bulyanhulu mine projected the protection order.
resumption of underground mining activities at the end of 2020,
- Bulyanhulu had been overrun by some 20,000 illegal miners in line with guidance. Work on the structural integrity of the and was no longer operating.
metallurgical plant commenced upon completion of the Acacia
- The government had frozen all concentrate sales as well as transaction, and refurbishment of the shaft is scheduled to start the concentrate containers held under court order at port. in August.
- There were hundreds of longstanding grievances, property disputes and accusations of human rights abuses at the Another study to determine extensions at Buzwagi is underway and a local content plan has been submitted to the government. mines.
- No geological block modelling, mineral resource Mark Bristow says enormous progress has been made in fixing management or mine planning had been done at the mines.
the Tanzanian situation, not least by concentrating on Barrick’s
- Survey data was significantly incorrect, and capital stakeholder engagement and community relations, with a focus allocation as well as executive decision-making were on building a real social license at what were badly neglected but haphazard at best.
world-class assets.
The first priority of Africa and Middle East chief operating officer “The foundation has been laid for delivery, and I can see North Willem Jacobs and his team was to regain the trust of the Mara and Bulyanhulu together eventually ranking as a Tier One12 government, which they did so successfully that the framework complex, with annual production in excess of 500,000 ounces at agreement which had been in limbo for years, was swiftly a cost in the lower half of the industry curve, well beyond finalized and signed at a ceremony attended by Tanzanian 10 years,” he says.
president John Magufuli and Barrick president and chief executive Mark Bristow. This was followed by the establishment of Twiga Minerals Corporation, a joint venture between Barrick and the government designed to oversee the management of the mines as well as the equal sharing of the economic benefits they create.
Greatly assisted by the Twiga board, Barrick and the affected communities soon agreed on a way forward to settle all the legacy land claims at North Mara.
Barrick’s DNA was infused into Tanzania with the introduction of key staff from its Mali operations, after the change of all but two members of the former management.
Operationally, the team developed and implemented a new tailings and water management plan for North Mara. The mine could then resume production and the ban on doré sales was Face masks provided to employees and stakeholders across our Africa and Middle East operations have been sourced from local communities. lifted. Getting to grips with the geology, a new block model that
CORTEZ LEADS THE WAY IN NEVADA
Cortez continues to produce higher than planned ounces at a lower cost, confirming its status as Nevada Gold Mines’ flagship as well as the leader in the general move from lower grade open pit operations to higher grade underground mining.
Its outperformance is being driven by the underground operation, production rates. On the back of this performance, the mineral where improved efficiencies supported mining at higher resource management team has stepped up their game to test
BARRICK SECOND QUARTER 2020 5 PRESS RELEASE
for geological extensions and the potential feeders of the known During the past quarter, the Goldrush project team was mineralization which could significantly extend the Life of Mine, integrated into the Cortez organization. Development of the enabling it to maintain its Tier One status without the assistance Goldrush declines is ahead of plan and the transition from of Goldrush. contractor to owner operation has been brought forward to 2020. The underground management team is currently developing operational readiness for the acceleration of the project, scheduled to expose first ore in the first half of 2021. Permits are expected in late 2021, paving the way for the start of final construction activities which Greg Walker, executive general manager, explains will further ensure the Cortez operations remains a long life, Tier One complex, one of three such operations in the Nevada Gold Mines portfolio.
In the meantime, Barrick’s nearby Fourmile project, which has not yet been included in the Nevada Gold Mines portfolio, has reported very significant drill results confirming the impressive high-grade of the mineralization as well as its exciting future potential.
EXPLORATION MAINTAINS BARRICK’S FOCUS ON THE FUTURE
There were significant drill results from all regions during the past quarter.
Despite the challenges presented by the Covid-19 pandemic, Barrick’s exploration teams have continued to add to the mineral inventory that is needed to sustain a profitable mining enterprise.
During the past quarter, there were significant drill results from McGrath as vice president exploration for AME and all regions. In Nevada, these included the high-grade intercepts Leandro Sastre as vice president exploration for LATAM.
at the Fourmile project, the highest grade ever intercept at North Leeville and the thick intercepts at Deep Post. McGrath has worked with and led exploration teams in Africa, North and South America and Europe, and her experience spans At Pueblo Viejo, in Dominican Republic, the first structural model the full spectrum of company size and exploration stages. and state-of-the-art geophysics have unlocked a new generation Named as one of the ‘Global 100 Inspirational Women in Mining’, of targets, and at Loulo 3, in Mali, new intersections have she has been involved in a number of major discoveries and confirmed that high-grade mineralization is still open down brings strong commercial skills to her new role.
plunge. Also at Loulo, the high-grade Yalea transfer zone has been extended 480 metres beyond the 2019 block model and is Sastre was previously mine operations and technical services still open down plunge. A greater than one-kilometre-long manager at Veladero. His wide skills base ranges from mineralized trend has been confirmed south of the Gounkoto exploration through ore control to resource modelling. He was open pit, also in Mali. closely involved with Exeter’s discovery and delineation of the Caspiche orebody in Chile, now part of our Norte Abierto project, During the quarter, the exploration teams in Africa and the and the Cerro Moro orebody in Argentina, which is now an Middle East (AME) as well as Latin America (LATAM) were operating mine.
strengthened with the appointment of senior managers, Aoife
BARRICK SECOND QUARTER 2020 6 PRESS RELEASE
RECRUITING AND DEVELOPING A NEW GENERATION OF LEADERS
Janet Camilo (left), the Dominican Republic’s Minister of Women, and Inka Mattila (right), UNDP resident representative, present the Gold Seal of Igualando RD to Juana Barceló (centre), Pueblo Viejo President, at a ceremony lauding the mine’s commitment to and progress in advancing gender equality in the workplace.
Barrick employs more than 20,000 people along with another 21,000 contractors in 12 countries across the world, and its recruitment and development policies are designed to ensure that they can be the best of the best.
The company has a strong tradition of hiring locally for Nevada Gold Mines. The company’s Compass Development operational as well as management roles. In its Africa and Program offers cross-functional modules ranging from geology Middle East (AME) region, 76% of management positions are through production to health and safety. Of the current group of occupied by host country nationals. In North America (NA) that participants in this program, 36% are women. Across AME, figure is 88% and in Latin America and Asia Pacific (LATAM & Barrick offers apprentice training leading to artisan status, and in AP) it is 51%. Last quarter, only 10 foreign nationals were hired NA, Nevada Gold Mines is the leading participant in the into management positions across all three regions. maintenance training cooperative program with Great Basin College.
To ensure that its people profile is aligned to societal and technological changes, Barrick is also driving the employment of “We want to have the right skills in the right jobs, but we also younger candidates as well as women. In the year to date, new want to make sure that we have an appropriately diverse hire percentages under 30 years of age were 50% in AME, 46% workforce, and that by investing in young people, we are building in NA and 42% in LATAM & AP. a new generation of leaders to take Barrick into the future,” says president and chief executive Mark Bristow.
Mining is traditionally a male-dominated industry and Barrick is making a determined effort to recruit more women through
PUEBLO VIEJO AWARDED GOLD SEAL FOR targeted campaigns. In NA, 15% of employees are women, and
GENDER EQUALITY
25% of new hires so far this year were women. In LATAM & AP, where 11% of all positions are held by women, hiring rates were The Gold Seal is the highest level of a new gender equality 18% in Q1 and 33% in Q2, reflecting the region’s improving certification and it was awarded to Pueblo Viejo (PV) following a ability to source and employ women candidates. The AME region has cultural obstacles to the employment of women, but there meticulous review by the Dominican Institute for Quality (INDOCAL), the Dominican Republic’s Ministry of Women and too the position is improving, with new placements up to 10% the United Nations Development Program (UNDP). At the same from a 6% base.
time, PV was also awarded the Nordom 775 certification for best Each region has identified high-potential women for further practice in gender equality and equity.
career development at all levels of the business. Barrick also has partnered with leading universities to customize development The certifications reflect PV’s commitment to equal rights, programs designed to meet its specific needs. benefits and opportunities for all employees, regardless of gender, and confirm that its workplace policies align with the In NA, 40% of the current participants in Barrick’s Greenfields United Nation’s Sustainable Development Goals and the Talent Program are women, who spend 12 months working in an Dominican Republic’s National Development Strategy with regard to reducing the gender pay gap and advancing women’s operational environment, then lead a crew for six months as relief supervisor before taking up their technical positions with representation in leadership positions.
BARRICK SECOND QUARTER 2020 7 PRESS RELEASE
Appendix 1 2020 Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS
2020 forecast 2020 forecast cost 2020 forecast total 2020 forecast all-in attributable production of sales15 ($/oz) cash costs8 ($/oz) sustaining costs8 ($/oz) (000s oz)
Carlin (61.5%)16 1,000 - 1,050 920 - 970 760 - 810 1,000 - 1,050
Cortez (61.5%) 450 - 480 980 - 1,030 640 - 690 910 - 960
Turquoise Ridge (61.5%) 430 - 460 900 - 950 540 - 590 690 - 740
Phoenix (61.5%) 100 - 120 1,850 - 1,900 700 - 750 920 - 970
Long Canyon (61.5%) 130 - 150 910 - 960 240 - 290 450 - 500
Nevada Gold Mines (61.5%) 2,100 - 2,250 970 - 1,020 660 - 710 880 - 930
Hemlo 200 - 220 960 - 1,010 800 - 850 1,200 - 1,250
North America 2,300 - 2,450 970 - 1,020 660 - 710 900 - 950
Pueblo Viejo (60%) 530 - 580 840 - 890 520 - 570 720 - 770
Veladero (50%) 240 - 270 1,220 - 1,270 670 - 720 1,250 - 1,300 Porgera (47.5%)17
Latin America & Asia Pacific 800 - 900 930 - 980 610 - 660 890 - 940
Loulo-Gounkoto (80%) 500 - 540 1,050 - 1,100 620 - 670 970 - 1,020
Kibali (45%) 340 - 370 1,030 - 1,080 600 - 650 790 - 840 North Mara (84%)18 240 - 270 750 - 800 570 - 620 830 - 880
Tongon (89.7%) 240 - 260 1,390 - 1,440 680 - 730 740 - 790 Bulyanhulu (84%)18 30 - 50 1,210 - 1,260 790 - 840 1,110 - 1,160 Buzwagi (84%)18 80 - 100 850 - 900 820 - 870 850 - 900
Africa & Middle East 1,450 - 1,600 1,040 - 1,090 640 - 690 870 - 920
Total Attributable to Barrick18,19,20 4,600 - 5,000 980 - 1,030 650 - 700 920 - 970
COPPER PRODUCTION AND COSTS
2020 forecast 2020 forecast cost 2020 forecast C1 2020 forecast all-in attributable production of sales15 ($/lb) cash costs11 ($/lb) sustaining costs11 ($/lb) (Mlbs)
Lumwana 250 - 280 2.20 - 2.40 1.50 - 1.70 2.30 - 2.60
Zaldívar (50%) 120 - 135 2.40 - 2.70 1.65 - 1.85 2.30 - 2.60
Jabal Sayid (50%) 60 - 70 1.75 - 2.00 1.40 - 1.60 1.50 - 1.70 Total Copper21 440 - 500 2.10 - 2.40 1.50 - 1.80 2.20 - 2.50
ATTRIBUTABLE CAPITAL EXPENDITURES
($ millions)
Attributable minesite sustaining 1,300 - 1,500
Attributable project 300 - 400 Total attributable capital expenditures22 1,600 - 1,900
2020 Outlook Assumptions and Economic Sensitivity Analysis23
2020 Guidance Impact on EBITDA
| Assumption | Hypothetical Change | (millions)24 | Impact on AISC8,11 | ||
|---|---|---|---|---|---|
| Gold revenue, net of royalties25 | $1,350/oz | +$100/oz | +$655 | +$4/oz | |
| $1,350/oz | -$100/oz | -$652 | -$4/oz | ||
| Copper revenue, net of royalties | $2.75/lb | +/- $0.50/lb | +/-$125 | +/- $0.02/lb | |
| BARRICK SECOND QUARTER 2020 | 8 | PRESS RELEASE |
Appendix 2 Production and Cost Summary - Gold
For the three months ended
6/30/20 3/31/20 % Change 6/30/19 % Change
Nevada Gold Mines LLC (61.5%)a
Gold produced (000s oz attributable basis) (1) % 521 526 (1) % 526
| 847 | 855 | (1) % | 548 | ||
| Cost of sales ($/oz) | 1,055 | 995 | 6 % | 842 | 25 % |
| Total cash costs ($/oz)b | 728 | 690 | 6 % | 594 | 23 % |
Gold produced (000s oz 100% basis) 55 %
All-in sustaining costs ($/oz)b 31 % 985 952 3 % 752
Carlin (61.5%)c
Gold produced (000s oz attributable basis) 235 253 (7) % 181 30 % Gold produced (000s oz 100% basis) 111 % 382 411 (7) % 181 Cost of sales ($/oz) (7) % 1,037 970 7 % 1,116 Total cash costs ($/oz)b 850 776 10 % 769 11 % All-in sustaining costs ($/oz)b 4 % 1,130 1,007 12 % 1,088
Cortez (61.5%)d
Gold produced (000s oz attributable basis) 132 128 3 % 280 (53) % Gold produced (000s oz 100% basis) 215 208 3 % 280 (23) %
| 870 | 876 | (1) % | 719 | ||
| Total cash costs ($/oz)b | 613 | 614 | 0 % | 489 | 25 % |
| All-in sustaining costs ($/oz)b | 950 | 1,009 | (6) % | 561 | 69 % |
Cost of sales ($/oz) 21 %
Turquoise Ridge (61.5%)e
Gold produced (000s oz attributable basis) 22 % 79 84 (6) % 65 Gold produced (000s oz 100% basis) 128 137 (6) % 87 47 % Cost of sales ($/oz) 61 % 1,073 1,032 4 % 665 Total cash costs ($/oz)b 32 % 753 668 13 % 569 All-in sustaining costs ($/oz)b 829 806 3 % 667 24 %
Phoenix (61.5%)f
Gold produced (000s oz attributable basis) 0 % 35 35 Gold produced (000s oz 100% basis) 57 57 0 % Cost of sales ($/oz) 1,726 1,583 9 % Total cash costs ($/oz)b (2) % 725 737 All-in sustaining costs ($/oz)b 5 % 957 914
Long Canyon (61.5%)f
Gold produced (000s oz attributable basis) 54 % 40 26 Gold produced (000s oz 100% basis) 54 % 65 42 Cost of sales ($/oz) 1,009 1,025 (2) % Total cash costs ($/oz)b 308 345 (11) % All-in sustaining costs ($/oz)b (23) % 430 561
Pueblo Viejo (60%)
Gold produced (000s oz attributable basis) 111 143 (22) % 124 (10) % Gold produced (000s oz 100% basis) (10) % 185 238 (22) % 207 Cost of sales ($/oz) 10 % 935 767 22 % 852 Total cash costs ($/oz)b 579 502 15 % 557 4 % All-in sustaining costs ($/oz)b 3 % 720 626 15 % 702
BARRICK SECOND QUARTER 2020 9 PRESS RELEASE
Loulo-Gounkoto (80%)
Gold produced (000s oz attributable basis) 141 141 0 % 147 (4) % Gold produced (000s oz 100% basis) (4) % 176 177 0 % 184 Cost of sales ($/oz) (6) % 1,012 1,002 1 % 1,072 Total cash costs ($/oz)b 639 614 4 % 598 7 % All-in sustaining costs ($/oz)b 27 % 1,030 891 16 % 811
Kibali (45%)
Gold produced (000s oz attributable basis) 90 91 (1) % 95 (5) % Gold produced (000s oz 100% basis) 201 201 (1) % 211 (5) %
| 1,067 | 1,045 | 2 % | 868 | ||
| Total cash costs ($/oz)b | 617 | 582 | 6 % | 540 | 14 % |
| All-in sustaining costs ($/oz)b | 739 | 773 | (4) % | 651 | 14 % |
Cost of sales ($/oz) 23 %
Veladero (50%)
Gold produced (000s oz attributable basis) (35) % 49 75 (35) % 75 Gold produced (000s oz 100% basis) 98 150 (35) % 150 (35) % Cost of sales ($/oz) 4 % 1,228 1,182 4 % 1,186 Total cash costs ($/oz)b 7 % 801 788 2 % 746 All-in sustaining costs ($/oz)b 1,383 1,266 9 % 1,046 32 %
Porgera (47.5%)
Gold produced (000s oz attributable basis) 62 (61) % 61 (61) %
Gold produced (000s oz 100% basis) 51 131 (61) % 128 (61) % Cost of sales ($/oz) 1,141 1,097 4 % 1,032 11 % Total cash costs ($/oz)b (2) % 875 941 (7) % 893 All-in sustaining costs ($/oz)b (6) % 1,046 1,089 (4) % 1,112
Tongon (89.7%)
Gold produced (000s oz attributable basis) 64 61 5 % 5 %
| 71 | 68 | 5 % | 68 | ||
| Cost of sales ($/oz) | 1,275 | 1,368 | (7) % | 1,562 | (18) % |
| Total cash costs ($/oz)b | 688 | 762 | (10) % | 750 | (8) % |
Gold produced (000s oz 100% basis) 5 %
All-in sustaining costs ($/oz)b (7) % 745 788 (5) % 802
Hemlo
Gold produced (000s oz) 54 57 (5) % 55 (2) % Cost of sales ($/oz) 33 % 1,268 1,119 13 % 953 Total cash costs ($/oz)b 31 % 1,080 945 14 % 822 All-in sustaining costs ($/oz)b 1,456 1,281 14 % 1,015 43 %
North Mara (84%)g
Gold produced (000s oz attributable basis) 68 5 % (11) % 65 76 Gold produced (000s oz 100% basis) 81 77 5 % 119 (32) % Cost of sales ($/oz) 1,040 959 8 % 800 30 % Total cash costs ($/oz)b 34 % 724 646 12 % 539 All-in sustaining costs ($/oz)b 1,166 816 43 % 675 73 %
Buzwagi (84%)g
Gold produced (000s oz attributable basis) 20 22 (9) % 19 5 %
Gold produced (000s oz 100% basis) (20) % 24 27 (9) % 30 Cost of sales ($/oz) 909 1,373 (34) % 1,198 (24) % Total cash costs ($/oz)b (32) % 751 1,275 (41) % 1,099 All-in sustaining costs ($/oz)b (33) % 770 1,288 (40) % 1,150
BARRICK SECOND QUARTER 2020 10 PRESS RELEASE
Bulyanhulu (84%)g
Gold produced (000s oz attributable basis) 7 7 0 % 6 17 %
Gold produced (000s oz 100% basis) (11) % 8 9 0 % 9 Cost of sales ($/oz) 36 % 1,658 1,685 (2) % 1,217 Total cash costs ($/oz)b 950 686 38 % 525 81 % All-in sustaining costs ($/oz)b 52 % 1,014 906 12 % 666
Kalgoorlie (50%)h
Gold produced (000s oz attributable basis) 57 (100) % Gold produced (000s oz 100% basis) 114 (100) % Cost of sales ($/oz) (100) % 1,038 Total cash costs ($/oz)b 846 (100) % All-in sustaining costs ($/oz)b 1,204 (100) %
Total Attributable to Barricki
Gold produced (000s oz) (15) % 1,149 1,250 (8) % 1,353 Cost of sales ($/oz)j 1,075 1,020 5 % 964 12 % Total cash costs ($/oz)b 10 % 716 692 3 % 651 All-in sustaining costs ($/oz)b 19 % 1,031 954 8 % 869
a. Represents the combined results of Cortez, Goldstrike (including our 60% share of South Arturo) and our 75% interest in Turquoise Ridge until June 30, 2019. Commencing July 1, 2019, the date Nevada Gold Mines was established, the results represent our 61.5% interest in Cortez, Carlin (including Goldstrike and 60% of South Arturo), Turquoise Ridge (including Twin Creeks), Phoenix and Long Canyon.
b. These are non-GAAP financial performance measures with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information and a detailed reconciliation of each non-GAAP measure used to the most directly comparable IFRS measure, please see pages 79 to 103 of our second quarter MD&A.
c. On July 1, 2019, Barrick's Goldstrike and Newmont's Carlin were contributed to Nevada Gold Mines and are now referred to as Carlin. As a result, the amounts presented represent Goldstrike on a 100% basis (including our 60% share of South Arturo) up until June 30, 2019, and the combined results of Carlin and Goldstrike (including NGM's 60% share of South Arturo) on a 61.5% basis thereafter.
d. On July 1, 2019, Cortez was contributed to Nevada Gold Mines, a joint venture with Newmont. As a result, the amounts presented are on an 100% basis up until June 30, 2019, and on a 61.5% basis thereafter.
e. Barrick owned 75% of Turquoise Ridge through to the end of the second quarter of 2019, with our joint venture partner, Newmont, owning the remaining 25%. Turquoise Ridge was proportionately consolidated on the basis that the joint venture partners that have joint control have rights to the assets and obligations for the liabilities relating to the arrangement. The figures presented in this table are based on our 75% interest in Turquoise Ridge until June 30, 2019. On July 1, 2019, Barrick's 75% interest in Turquoise Ridge as well as Newmont's Twin Creeks and 25% interest in Turquoise Ridge were contributed to Nevada Gold Mines. Starting July 1, 2019, the results represent our 61.5% share of Turquoise Ridge and Twin Creeks, now referred to as Turquoise Ridge.
f. A 61.5% interest in these sites was acquired as a result of the formation of Nevada Gold Mines on July 1, 2019.
g. Formerly known as Acacia Mining plc. On September 17, 2019, Barrick acquired all of the shares of Acacia it did not own. Operating results are included at 100% from October 1, 2019 to December 31, 2019 (notwithstanding the completion of the Acacia transaction on September 17, 2019, we consolidated our interest in Acacia and recorded a non-controlling interest of 36.1% in the income statement for the entirety of the third quarter of 2019 as a matter of convenience), and on an 84% basis thereafter as the GoT's 16% free-carried interest was made effective from January 1, 2020.
h. On November 28, 2019, we completed the sale of our 50% interest in Kalgoorlie in Western Australia to Saracen Mineral Holdings Limited for total cash consideration of $750 million. Accordingly, these represent our 50% interest until November 28, 2019.
i. Excludes Pierina; Lagunas Norte starting in the fourth quarter of 2019; and Golden Sunlight and Morila (40%) starting in the third quarter of 2019 which are producing incidental ounces as they reach the end of their mine lives.
j. Cost of sales per ounce (Barrick’s share) is calculated as gold cost of sales on an attributable basis (excluding sites in care and maintenance) divided by gold equity ounces sold.
BARRICK SECOND QUARTER 2020 11 PRESS RELEASE
Production and Cost Summary - Copper
6/30/20 3/31/20 % Change 6/30/19 % Change
Lumwana
Copper production (Mlbs) 72 64 13 % 49 47 %
| 2.06 | 1.94 | 6 % | 2.07 | ||
| C1 cash costs ($/lb)a | 1.55 | 1.63 | (5) % | 1.70 | (9) % |
| All-in sustaining costs ($/lb)a | 2.27 | 2.26 | 0 % | 2.78 | (18) % |
Cost of sales ($/lb) 0 %
Zaldívar (50%)
Copper production (Mlbs attributable basis) 28 31 (13) %
(10) % 32 Copper production (Mlbs 100% basis) 56 62 (10) % 64 (13) % Cost of sales ($/lb) 9 % 2.52 2.39 5 % 2.32 C1 cash costs ($/lb)a 1.79 1.71 11 % 5 % 1.61 All-in sustaining costs ($/lb)a 2.09 1.99 5 % 1.85 13 %
Jabal Sayid (50%)
| Copper production (Mlbs attributable basis) | 20 | 20 | 0 % | 16 | 25 % |
| Copper production (Mlbs 100% basis) | 40 | 40 | 0 % | 32 | 25 % |
| Cost of sales ($/lb) | 1.41 | 1.28 | 10 % | 1.45 | (3) % |
| C1 cash costs ($/lb)a | 1.14 | 0.97 | (7) % |
18 % 1.22 All-in sustaining costs ($/lb)a 8 % 1.41 1.11 27 % 1.31
Total Copper
Copper production (Mlbs attributable basis) 4 % 97 24 % 120 115 Cost of sales ($/lb)b 2 % 2.08 1.96 6 % 2.04 C1 cash costs ($/lb)a 1.55 1.55 0 % 1.59 (3) % All-in sustaining costs ($/lb)a (6) % 2.15 2.04 5 % 2.28
a. These are non-GAAP financial performance measures with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information and a detailed reconciliation of each non-GAAP measure used to the most directly comparable IFRS measure, please see pages 79 to 103 of our second quarter MD&A.
b. Cost of sales per pound (Barrick’s share) is calculated as copper cost of sales plus our equity share of cost of sales attributable to Zaldívar and Jabal Sayid divided by copper pounds sold.
BARRICK SECOND QUARTER 2020 12 PRESS RELEASE