Barrick Reports Stronger Q4 Gold Production
PRESS RELEASE
NYSE : GOLD TSX : ABX
All amounts expressed in US Dollars
Barrick Reports Stronger Q4 Gold Production
Toronto, January 17, 2023 – Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick” or the
“Company”) today reported preliminary full year and fourth quarter 2022 production results. On
the back of stronger Q4 production, 13% higher than the previous quarter, preliminary gold
production for the full year of 4.14 million ounces was approximately 1% lower than the 4.2 million
ounces1 previously guided, while preliminary copper production of 440 million pounds for 2022 was
in line with the guidance range of 420 to 470 million pounds.
The preliminary Q4 results show sales of 1.11 million ounces of gold and 99 million pounds of
copper, as well as preliminary Q4 production of 1.12 million ounces of gold and 96 million pounds
of copper. The average market price for gold in Q4 was $1,726 per ounce and the average market
price for copper in Q4 was $3.63 per pound.
Preliminary Q4 gold production improved from Q3 and was the highest quarter for the year with
stronger performances from Cortez, Carlin and Tongon. This was partially offset by lower
production at Pueblo Viejo which finished the year well within guidance. Compared to Q3, Q4 gold
cost of sales per ounce 2 is expected to be 4% to 6% higher, total cash costs per ounce 3 are
expected to be 2% to 4% lower and all -in sustaining costs per ounce 3 are expected to be 1% to
3% lower than the prior quarter.
Preliminary Q4 copper production was lower than Q3, driven by higher waste stripping, lower
throughput as well as lower grades at Lumwana as per the mine plan and in line with our previous
disclosures. Compared to Q3, Q4 copper cost of sales per pound2 is expected to be 38% to 40%
higher, C1 cash costs per pound3 are expected to be 20% to 22% higher and all-in sustaining costs
per pound3 are expected to be 26% to 28% higher. In addition to lower sales from Lumwana due
to the lower production described above, Zaldívar also had higher input costs and higher sustaining
capital.
Barrick w ill provide additional discussion and analysis regarding its full year and Q4 2022
production and sales when the Company reports its quarterly and full year results before North
American markets open on February 15, 2023.
BARRICK GOLD CORPORATION PRESS RELEASE
The following table includes preliminary gold and copper production and sales results from
Barrick's operations:
Three months ended
December 31, 2022
Twelve months ended
December 31, 2022
Production Sales Production Sales
Gold (attributable ounces (000))
Carlin (61.5%) 265 266 966 968
Cortez (61.5%) 140 137 450 449
Turquoise Ridge (61.5%) 78 74 282 278
Phoenix (61.5%) 30 31 109 106
Long Canyon (61.5%) 3 3 55 55
Nevada Gold Mines (61.5%) 516 511 1,862 1,856
Loulo-Gounkoto (80%) 139 141 547 548
Pueblo Viejo (60%) 98 96 428 426
Kibali (45%) 97 94 337 332
North Mara (84%) 70 70 263 265
Tongon (89.7%) 63 59 180 178
Veladero (50%) 50 53 195 199
Bulyanhulu (84%) 49 49 196 205
Hemlo 38 38 133 132
Total Gold 1,120 1,111 4,141 4,141
Copper (attributable pounds (millions))
Lumwana 53 55 267 275
Zaldívar (50%) 25 24 98 98
Jabal Sayid (50%) 18 20 75 72
Total Copper 96 99 440 445
Fourth Quarter and Full Year 2022 Results
Barrick will release its Q4 and full year 2022 results before market open on February 15, 2023.
President and CEO Mark Bristow will host a live presentation of the results that day at 11:00 EST
/ 16:00 UTC, with an interactive webinar linked to a conference call. Participants will be able to
ask questions.
Go to the webinar
US and Canada (toll-free), 1 800 319 4610
UK (toll-free), 0808 101 2791
International (toll), +1 416 915 3239
The Q4 and full year 2022 presentation materials will be available on Barrick’s website at
www.barrick.com.
The webinar will remain on the website for later viewing, and the conference call will be available
for replay by telephone at 1 855 669 9658 (US and Canada toll -free) and +1 604 674 8052
(international toll), access code 9705.
BARRICK GOLD CORPORATION PRESS RELEASE
Enquiries:
Claudia Pitre
Manager, Investor Relations and Corporate Access
+1 416 307 5105
Kathy du Plessis
Investor and Media Relations
+44 20 7557 7738
Website: www.barrick.com
Technical Information
The scientific and technical information contained in this news release has been reviewed and
approved by: Craig Fiddes, SME -RM, Manager - Resource Modeling, Nevada Gold Mines; Chad
Yuhasz, P.Geo, Mineral Resource Manager, Latin America and Asia Pacific; and Richard Peattie,
MPhil, FAusIMM, Mineral Resources Manager: Africa & Middle East — each a “Qualified Person”
as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Endnote 1
Porgera has been on temporary care and maintenance since April 2020 and was not included in
our full year 2022 guidance. On April 9, 2021, the Government of Papua New Guinea and Barrick
Niugini Limited, the operator of the Porgera joint venture, signed a Framework Agreement in which
they agreed on a partnership for Porgera’s future ownership and operation. On February 3, 2022,
the Framework Agreement was replaced by the more detailed Porgera Project Commencement
Agreement (the “Commencement Agreement”). We expect to update our guidance to include
Porgera following both the execution of definitive agreements to implement the binding
Commencement Agreement and the finalization of a timeline for the resumption of full mine
operations.
Endnote 2
Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding
sites in care and maintenance) divided by ounces sold (both on an attributable basis based on
Barrick’s ownership share). Copper cost of sales per pound is calculated as cost of sales across
our copper operations divided by pounds sold (both on an attributable basis based on Barrick’s
ownership share).
References to attributable basis means our 100% share of Hemlo and Lumwana, our 89.7% share
of Tongon, our 84% share of North Mara and Bulyanhulu, our 80% share of Loulo-Gounkoto, our
61.5% share of Nevada Gold Mines, our 60% share of Pueblo Viejo, our 50% share of Veladero,
Zaldívar and Jabal Sayid and our 45% share of Kibali.
Endnote 3
Total cash costs per ounce, all -in sustaining costs per ounce and all -in costs per ounce are non -
GAAP financial measures which are calculated based on the definition published by the World
Gold Council ('WGC') (a market development organization for the gold industry comprised of and
funded by gold mining companies from around the world, including Barrick). The WGC is not a
regulatory organization. Management uses these measures to monitor the performance of our gold
mining operations and its ability to generate positive cash flow, both on an individual site basis and
an overall company basis.
BARRICK GOLD CORPORATION PRESS RELEASE
Total cash costs start with our cost of sales related to gold production and removes depreciation,
the non-controlling interest of cost of sales and includes by-product credits. All-in sustaining costs
start with total cash costs and include sustaining capital expenditures, sustaining leases, general
and administrative costs, minesite exploration and evaluation costs and reclamation cost accretion
and amortization. These additional costs reflect the expenditures made to maintain current
production levels.
We believe that our use of total cash costs, all -in sustaining costs and all -in costs will assist
analysts, investors and other stakeholders of Barrick in understanding the costs associated with
producing gold, understanding the economics of gold mining, assessing our operating performance
and also our ability to generate free cash flow from current operations and to generate free cash
flow on an overall company basis. Due to the capital-intensive nature of the industry and the long
useful lives over which these items are depreciated, there can be a significant timing difference
between net earnings calculated in accordance with IFRS and the amount of free cash flow that is
being generated by a mine and therefore we believe these measures are useful non-GAAP
operating metrics and supplement our IFRS disclosures. These measures are not representative
of all of our cash expenditures as they do not include income tax payments, interest costs or
dividend payments. These measures do not include depreciation or amortization.
Total cash costs per ounce, all-in sustaining costs and all-in costs are intended to provide additional
information only and do not have standardized definitions under IFRS and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance with
IFRS. These measures are not equivalent to net income or cash flow from operations as
determined under IFRS. Although the WGC has published a standardized definition, other
companies may calculate these measures differently.
C1 cash costs per pound and all-in sustaining costs per pound are non-GAAP financial measures
related to our copper mine operations. We believe that C1 cash costs per pound enables investors
to better understand the performance of our copper operations in comparison to other copper
producers who present results on a similar basis. C1 cash costs per pound excludes royalties and
production taxes and non-routine charges as they are not direct production costs. All-in sustaining
costs per pound is similar to the gold all -in sustaining costs metric and management uses this to
better evaluate the costs of copper production. We believe this measure enables investors to better
understand the operating performance of our copper mines as this measure reflects all of the
sustaining expenditures incurred in order to produce copper. All -in sustaining costs per pound
includes C1 cash costs, sustaining capital expenditures, sustaining leases, general and
administrative costs, minesite exploration and evaluation costs, royalties and production taxes,
reclamation cost accretion and amortization and write-downs taken on inventory to net realizable
value.
Barrick will provide a full reconciliation of these non-GAAP financial measures when the Company
reports its quarterly results on February 15, 2023.
Cautionary Statements Regarding Preliminary Fourth Quarter and Full Year Production,
Sales and Costs for 2022, and Forward-Looking Information
Barrick cautions that, whether or not expressly stated, all full year and fourth quarter figures
contained in this press release including, without limitation, production levels, sales and associated
BARRICK GOLD CORPORATION PRESS RELEASE
costs are preliminary, and reflect our expected full year and fourth quarter results as of the date of
this press release. Actual reported full year and fourth quarter production levels, sales and
associated costs are subject to management’s final review, as well as review by the C ompany’s
independent accounting firm, and may vary significantly from those expectations because of a
number of factors, including, without limitation, additional or revised information, and changes in
accounting standards or policies, or in how those standards are applied. Barrick will provide
additional discussion and analysis and other important information about its full year and fourth
quarter production levels, sales and associated costs when it reports actual results on February
15, 2023. For a compl ete picture of the Company’s financial performance, it will be necessary to
review all of the information in the Company’s full year and fourth quarter financial report and
related MD&A. Accordingly, readers are cautioned not to rely solely on the information contained
herein.
Finally, Barrick cautions that this press release contains forward-looking statements with respect
to: (i) Barrick’s production; and (ii) costs per ounce for gold and per pound for copper.
Forward-looking statements are necessarily based upon a number of estimates and assumptions
including material estimates and assumptions related to the factors set forth below that, while
considered reasonable by the Company as at the date of this press release in light of
management’s experience and perception of current conditions and expected developments, are
inherently subject to significant business, economic, and competitive uncertainties and
contingencies. Known or unknown factors could cause actual results to differ materially from those
projected in the forward -looking statements, and undue reliance should not be placed on such
statements and information.
Such factors include, but are not limited to: fluctuations in the spot and forward price of gold,
copper, or certain other commodities ( such as silver, diesel fuel, natural gas, and electricity); the
speculative nature of mineral exploration and development; changes in mineral production
performance, exploitation, and exploration successes; the duration of the temporary suspension of
operations at Porgera and the timeline for the execution of definitive agreements to implement the
Commencement Agreement, and recommence operations at Porgera; risks associated with
projects in the early stages of evaluation, and for which additional engineeri ng and other analysis
is required; disruption of supply routes which may cause delays in construction and mining
activities, including disruptions in the supply of key mining inputs due to the invasion of Ukraine by
Russia; whether benefits expected from recent transactions are realized; diminishing quantities or
grades of reserves; increased costs, delays, suspensions and technical challenges associated with
the construction of capital projects; operating or technical difficulties in connection with mining or
development activities, including geotechnical challenges and disruptions in the maintenance or
provision of required infrastructure and information technology systems; failure to comply with
environmental and health and safety laws and regulations; timing of receipt of, or failure to comply
with, necessary permits and approvals; non-renewal of key licenses by governmental authorities;
uncertainty whether some or all of targeted investments and projects will meet the Company’s
capital allocation objecti ves and internal hurdle rate; the impact of inflation, including global
inflationary pressures driven by supply chain disruptions caused by the ongoing Covid-19
pandemic and global energy cost increases following the invasion of Ukraine by Russia; the impact
of global liquidity and credit availability on the timing of cash flows and the values of assets and
liabilities based on projected future cash flows; fluctuations in the currency markets; changes in
national and local government legislation, taxation, controls or regulations and/ or changes in the
BARRICK GOLD CORPORATION PRESS RELEASE
administration of laws, policies and practices, expropriation or nationalization of property and
political or economic developments in Canada, the United States, and other jurisdictions in which
the Company or its affiliates do or may carry on business in the future; lack of certainty with respect
to foreign legal systems, corruption and other factors that are inconsistent with the rule of law;
damage to the Company’s reputation due to the actual or perceived occurrence of any number of
events, including negative publicity with respect to the Company’s handling of environmental
matters or dealings with community groups, whether true or not; the possibility that future
exploration results will not be consistent w ith the Company’s expectations; risks that exploration
data may be incomplete and considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and socioeconomic studies and
investment; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; risks
associated with illegal and artisanal mining; risks associated with new diseases, epidemics and
pandemics, including the effects of the global Covid-19 pandemic; litigation and legal and
administrative proceedings; contests over title to properties, particularly title to undeveloped
properties, or over access to water, power and other required infrastructure; business opportunities
that may be presented to, or pursued by, the Com pany; our ability to successfully integrate
acquisitions or complete divestitures; risks associated with working with partners in jointly
controlled assets; employee relations including loss of key employees; increased costs and
physical risks, including extreme weather events and resource shortages, related to climate
change; and availability and increased costs associated with mining inputs and labor. Barrick also
cautions that its guidance may be impacted by the ongoing business and social disruption caused
by the spread of Covid-19. In addition, there are risks and hazards associated with the business of
mineral exploration, development and mining, including environmental hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-in s, flooding and gold bullion,
copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or
inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual
results to differ materially from those expressed or implied in any forward-looking statements made
by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees
of future performance. All of the forward-looking statements made in this press release are qualified
by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial securities regulatory authorities for
a more detailed discussion of some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking
statements contained in this press release.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise, except as required by applicable
law.