Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today reported its first quarter results which were in line with guidance and position the Company well to meet its full year targets. Gold production is expected to ramp up steadily
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today
reported its first quarter results which were in line with
guidance and position the Company well to meet its full year
targets. Gold production is expected to ramp up steadily
during the year, supported by the completion of the Pueblo
Viejo plant expansion and the resumption of operations at
the Porgera mine. Additionally, copper production is also on
track to meet the full year’s guidance.
Reporting its Q1 results, Barrick said lower production
and the consequent higher costs reflected the delayed
ramp up at Pueblo Viejo following reconstruction of the
conveyor, which has now been completed, in addition
to planned maintenance at Nevada Gold Mines (NGM)
and mine sequencing at other sites. In the meantime, the
Company was progressing its four major organic growth
projects: the ramp up of the Goldrush gold mine in Nevada;
the Pueblo Viejo expansion; the Super Pit project at the
Lumwana copper mine in Zambia; and the development
of the giant copper-gold mine at Reko Diq in Pakistan.
Brownfields growth continues to support Barrick’s unique
reserve replacement record and greenfields exploration is
expanding its portfolio across the world.
Financial results for the quarter show a year-over-year
143% increase in net earnings per share, a 36% rise in
adjusted net earnings 1, and a 7% increase to $907 million
in attributable EBITDA2, with the operations delivering $760
million in operating cash flow for the quarter. The quarterly
dividend was maintained at $0.10 per share.
Q12024
5 6 7
WORLD-CLASS
COPPER
PROJECTS
GOLDRUSH
OPENS
NEW
TRAINING
ACADEMY
TORONTO – MAY 1, 2024
ALL AMOUNTS EXPRESSED IN U.S. DOLLARS
CLEAN
ENERGY
TRANSITION
4
BARRICK TO RAMP UP PRODUCTION
AS IT REMAINS ON TRACK TO ACHIEVE 2024 TARGETS
Results
Release
CONTINUED ON PAGE 3
COSTS EXPECTED TO TRACK LOWER
THROUGH THE YEAR
BARRICK ON TRACK
TO ACHIEVE 2024 TARGETS
ANOTHER SIGNIFICANT CONTRIBUTION
FROM COPPER PORTFOLIO
CONTINUED FOCUS ON SAFETY
AND OUR 'JOURNEY TO ZERO'
QUARTERLY DIVIDEND DECLARED
$0.10 PER SHARE
Key Performance Indicators
Financial and Operating Highlights
Financial Results Q1 2024 Q4 2023 Q1 2023
Realized gold price3,4
($ per ounce) 2,075 1,986 1,902
Realized copper price3,4
($ per pound) 3.86 3.78 4.20
Net earnings5
($ millions) 295 479 120
Adjusted net earnings1
($ millions) 333 466 247
Attributable EBITDA2
($ millions) 907 1,068 851
Net cash provided by operating
activities ($ millions) 760 997 776
Free cash flow6
($ millions) 32 136 88
Net earnings per share
($) 0.17 0.27 0.07
Adjusted net earnings
per share1 ($) 0.19 0.27 0.14
Attributable capital
expenditures7 ($ millions) 572 660 526
Operating Results Q1 2024 Q4 2023 Q1 2023
Gold
Production3
(thousands of ounces) 940 1,054 952
Cost of sales
(Barrick’s share)3,8 ($ per ounce) 1,425 1,359 1,378
Total cash costs3,9
($ per ounce) 1,051 982 986
All-in sustaining costs3,9
($ per ounce) 1,474 1,364 1,370
Copper
Production3,10
(thousands of tonnes) 40 51 40
Cost of sales
(Barrick’s share)3,11 ($ per pound) 3.20 2.92 3.22
C1 cash costs3,12
($ per pound) 2.40 2.17 2.71
All-in sustaining costs3,12
($ per pound) 3.59 3.12 3.40
Financial Position As at
3/31/24
As at
12/31/23
As at
3/31/23
Debt (current and long-term)
($ millions) 4,725 4,726 4,777
Cash and equivalents
($ millions) 3,942 4,148 4,377
Debt, net of cash
($ millions) 783 578 400
Best Assets
▪ Barrick on track to achieve 2024 targets as Pueblo
Viejo and Porgera ramp up
▪ Another strong performance from Loulo-Gounkoto
and Veladero in Q1
▪ Costs expected to track lower through the year on
steadily increasing production
▪ Pueblo Viejo completes conveyor rebuild, plant
ramping up in Q2
▪ Porgera produces first gold, with plant ramp-up on
track to reach capacity in 2024
▪ Another significant contribution from the copper
portfolio with increasing production forecast
through the year
▪ Reko Diq and Lumwana feasibility studies on track
for completion by year end with long-lead orders
expected to commence in Q3
▪ Focus shifts to Fourmile on the back of Goldrush
success and exploration expands beyond
brownfields targets
▪ Brownfields growth continues as engine for
organic reserve replacement with encouraging
drilling results at NGM, Loulo and Kibali
▪ Greenfield exploration, complemented by strategic
partnerships, grows portfolio in the most
prospective belts
Leader in Sustainability
▪ Continued focus on safety, refining our ‘Journey to
Zero’ program with Group-wide rollout of Fatal
Risk Standards
▪ Differentiated and holistic approach to
sustainability reinforced in Sustainability Report to
be published in May 2024
▪ Commissioned 50% of the 200-megawatt solar
facility in Nevada — an initiative supported by U.S.
government incentives of over $100 million,
including incentives for U.S.-manufactured solar
cells
Delivering Value
▪ Barrick’s focus on gold and copper production
growth amplifies profitability in rising commodity
market
▪ Operating cash flow of $760 million for the quarter
▪ Net earnings per share of $0.17 and adjusted net
earnings per share1 of $0.19 for the quarter
▪ $0.10 per share dividend declared
BARRICK FIRST QUARTER 2024 2 PRESS RELEASE
CONTINUED FROM PAGE 1
Operational highlights for the quarter also included the
accelerated ramp-up of Goldrush in Nevada after its final
permitting (Record of Decision) late last year. At the nearby
Fourmile project — a potentially world-class asset 100%
owned by Barrick — drilling for a prefeasibility study has
started to drive it up the value curve. Exploration has
identified open-ended high-grade upside at Turquoise Ridge
in Nevada, already Barrick’s highest-grade mine, and at Kibali
in the Democratic Republic of Congo, geologists have
discovered a significant high-grade trend similar to the KCD
deposit on which the mine was built.
Commenting on the results, president and chief executive
Mark Bristow said Barrick’s ability to grow its gold and copper
production from its peerless asset base would amplify its
profitability in the rising commodity markets.
“Our focus on exploration has placed Barrick in the unique
position of more than replacing the reserves we mine year
after year. Our key organic projects, such as the development
of Reko Diq, the extension of Pueblo Viejo’s Tier One13 life by
more than 20 years and the transformation of Lumwana into
one of the world’s major copper mines will secure Barrick’s
production profile well into the future,” he said.
Barrick’s holistic sustainability strategy remains foundational
to all aspects of its business and continues to deliver real
value to stakeholders. Bristow noted that among many other
things, the Company had increased its water re-use and
recycle rate to 84% last quarter, commissioned the first stage
of a 100-megawatt solar array at NGM and had a 16-
megawatt solar array permitted at Kibali. Power purchase
agreements by NGM have avoided 75% of its emissions. On
the biodiversity front, Barrick has a 730-hectare rehabilitation
plan for its operating sites for 2024 and also aims to relocate
72 more white rhinos to the Garamba National Park in the
Democratic Republic of Congo, in conjunction with the Institut
Congolais pour la Conservation de la Nature (ICCN) and
African Parks.
Q1 2024 Results Presentation
Webinar and Conference Call
Mark Bristow will host a live presentation of the results today
at 11:00 AM ET, with an interactive webinar linked to a
conference call. Participants will be able to ask questions.
Go to the webinar
US/Canada (toll-free), 1 844 763 8274
UK (toll), +44 20 3795 9972
International (toll), +1 647 484 8814
The Q1 presentation materials will be available on Barrick’s
website at www.barrick.com and the webinar will remain on
the website for later viewing.
BARRICK DECLARES Q1 DIVIDEND
Barrick today announced the declaration of a dividend of $0.10 per share for Q1 2024.
The dividend is consistent with the Company’s Performance
Dividend Policy announced at the start of 2022.
The Q1 2024 dividend will be paid on June 17, 2024 to
shareholders of record at the close of business on May 31,
2024.
“The continued strength of our balance sheet and our global
asset base provide us with the ability to maintain the
distribution of a robust dividend to our shareholders, whilst
still ensuring Barrick has adequate liquidity to invest in
growing our business,” said senior executive vice-president
and chief financial officer Graham Shuttleworth.
BARRICK FIRST QUARTER 2024 3 PRESS RELEASE
WORLD-CLASS COPPER PROJECTS SET TO DELIVER
INTO RISING PRICE AND DEMAND MARKET
The copper indus try ha s t raditionally s uffered fr om unde rinvestment whi le the s earch f or ne w
resources to boos t production has accelerated. The long le ad times needed to turn discoveries
into m ines m ean t hat s upply i s una ble t o m eet the gr owing globa l dem and, dr iven by the
worldwide transition to renewable energy.
Foreseeing the emergence of t he metal’s critical importance
to the greening of the global grid, Barrick made the expansion
of its copp er por tfolio a s trategic p riority at th e t ime of t he
merger with Randgold five years ago. A thorough review of its
global asse ts hig hlighted t wo sign ificant op portunities: th e
Lumwana mine in Zambia; and the dormant Reko Diq project
in Pakistan.
The n ew B arrick team re structured a nd re -engineered the
struggling Lu mwana op eration ba ck to h ealth an d the n
embarked o n a Su per P it e xpansion pr oject w hich wil l
transform L umwana i nto o ne of t he w orld’s lar gest c opper
mines, with a projected annual production of around 240,000
tonnes per year over a life of more than 30 years.14 It is a key
component of t he Zambian government’s drive to revive the
country’s copper industry.
At the s ame t ime, Bar rick re visited the R eko D iq pr oject in
Pakistan, which hosts one of the world’s largest undeveloped
copper-gold deposits. Stalled at the feasibility stage almost a
decade ago, B arrick r evitalized t he p roject t hrough a
reconstituted owne rship s tructure b ased o n its t rademark
partnership model. The Company owns 50% and will operate
the mine, a number of Pakistani state-owned enterprises hold
25% and, at Barrick’s insistence, the remaining 25% is held
by the government of the Balochistan province to ensure that
the pr ovince an d its p eople w ill r eceive a s ubstantial
economic benefit from the mine.
Both p rojects a re o n t rack f or fir st p roduction i n 2028 wh en
they will lift Barrick into the upper tier of copper miners and
stand a longside i ts p eerless g old a sset p ortfolio a s a m ajor
contributor. It is worth noting that some analysts predict that
gold and copper both appear to be entering a new commodity
super cycle where demand outstrips supply, leading to high
prices for years to come.
President and chief executive Mark Bristow said Reko Diq
was a prime example of Barrick’s ability to recognize and
realize value. “This is undoubtedly one of the best
undeveloped copper-gold deposits in the world, with a truly
unique combination of large scale, low strip and high-grade
orebodies. Barrick has a long record of success in seeing
projects of this magnitude through from construction to
operation, and we also bring to Reko Diq our expertise in
successfully partnering with host countries for the benefit of
all stakeholders in developing jurisdictions globally,” he said.
“There is also an enormous opportunity here to further unlock
value, not only at Reko Diq but also in the wider region, which
is underexplored and highly prospective."
Regarding Lumwana, Bristow said that well before the
completion of its expansion program, the revived mine had
already contributed almost $3 billion to the Zambian economy
since 2019 in the form of royalties, taxes, salaries and the
procurement of goods and services from local businesses.
As at its other operations, Barrick has also promoted the
development of a sustainable local economy around the
mine. Among other things, it has launched a Business
Accelerator Program designed to build the commercial
capacity of the contractors in its supply chain, equipping them
to grow and diversify their businesses.
BARRICK FIRST QUARTER 2024 4 PRESS RELEASE
The Super Pit expansion project will transform Lumwana into one of the world’s largest copper mines.
POWER-BASED STRATEGIES AND TECHNOLOGY
DRIVE EFFICIENCIES, CUT COSTS
Barrick’s group-wide trans ition t o cle an ener gy i s mak ing s teady progress wit h t he
commissioning of 5 0% of t he TS S olar P ower f acility at N GM in A pril m arking anot her m ajor
milestone on our greenhouse gas (GHG) emissions reduction roadmap.
With 100 megawatts of energy-producing capacity in this first
phase, th e solar facility b egan t ransmitting powe r t o N GM’s
operations in April.
When the second and final stage is completed in the second
quarter of 2024, adding another 100 megawatts of power, the
solar array will have the capacity to pr oduce between 15% to
20% o f N GM’s a nnual power d emand — red ucing NGM’s
annual G HG e missions by 8% a nd Bar rick’s o verall G HG
emissions by 5 % a gainst a 20 18 ba seline. T he U .S.
government provided an important economic incentive for the
development of t his re newable pr oject via a $ 35 m illion tax
benefit (Barrick’s share).
NGM has com mitted to a 20% carb on red uction by 2025
which will b e achieved through the T S Solar facility a nd the
modification of NGM’s TS Power Plant providing the ability to
use cleaner burning natural gas as a fuel source.
Up ne xt at N GM i s the d evelopment of a n ad ditional sola r
power facility with a battery energy storage system (BESS) to
serve as a secondary power source, mitigating the impacts of
power gr id disrup tion, and e nhancing r enewable e nergy
consumption d uring off- peak hour s. The pr oject h as b een
awarded $95 million in fu nding from the U.S. Department of
Energy following a highly-competitive process that evaluated
potential clea n ener gy pr ojects on min e l and acr oss the
country.
At Loulo-Gounkoto in Mali, the use of solar energy is also
increasing with a 72-megawatt solar power facility and 38-
megwatt BESS now connected to the complex’s micro-grid.
Solar power accounted for 28% of the total energy blend
used in the first quarter of 2024, which is up from 14% in
2023 and 9% in 2022. Energy costs were down $6 million in
the first quarter with this shift to solar away from heavy fuel
oil.
In the Democratic Republic of Congo, Kibali’s three
hydropower stations provided most of the mine’s power last
year. At an average cost of $0.04 per kilowatt-hour, the
hydropower blend is 90% cheaper than diesel fuel. The
current expansion of the mine’s solar plant will increase the
renewable energy use from 81% to 85%, with the mine
running solely on renewal power during the six-month rainy
season.
In Argentina, the Libertadores powerline is supplying
renewable power to Veladero from neighboring Chile’s
national grid, reducing GHG emissions and adding cost
efficiencies. 2023 was the powerline’s first full year of
operation — and it’s one reason Veladero exceeded its
production guidance and beat its guidance on costs last year.
A solar plant project at Pueblo Viejo in the Dominican
Republic is also underway.
Barrick is targeting an overall 30% reduction in GHG
emissions by 2030 (against our 2018 baseline with the goal
of achieving net-zero emissions by 2050.
BARRICK FIRST QUARTER 2024 5 PRESS RELEASE
The TS Solar Power facility at Nevada Gold Mines.
NEVADA GOLD MINES CELEBRATES
OFFICIAL OPENING OF GOLDRUSH
The Goldrush Project is officially on track to produce 130,000 ounces15 of gold this yea r and will
further enhance t he val ue N evada Gol d M ines (NGM ) br ings to t he st ate t hrough t axes,
employment a nd m eaningful s upport f or c ommunities, s aid Ba rrick P resident a nd C EO, Mar k
Bristow, a t the pr oject’s ope ning c eremony at tended by G overnor J oe Lomba rdo a nd l ocal
stakeholders.
Barrick, which owns 61.5% o f t he p roject thr ough t he NGM
joint v enture with N ewmont (3 8.5%), i s deve loping and w ill
operate the mine, scheduled to reach commercial production
by 2 026 and gr owing to a pproximately 400 ,000 oun ces per
annum15 by 202 8 (10 0% b asis). T he 24- year u nderground
mine is expected to provide 500 jobs dur ing its constr uction
and employment for 570 people once operational.
More than $300 million o f a $1 billion capital budget (100%
basis) h as bee n spen t on t he pr oject, wh ich is e xpected t o
generate substantial tax revenue for the state both in the form
of ne t pr oceeds fr om miner als tax and t he g old an d sil ver
excise tax, earmarked for education. in Nevada under the
new mine tax framework.
Speaking at the ribbon-cutting ceremony, Bristow thanked the
bi-partisan federal delegation and the governor for their active
and unwavering commitment that was instrumental in
obtaining the record of decision, as well as our community
stakeholders for supporting the project through the permitting
process. “We recognize that we have been entrusted with a
tremendous economic and environmental responsibility and
we look forward to sharing the benefits of this new mine with
Nevada and its people,” he said.
BARRICK FIRST QUARTER 2024 6 PRESS RELEASE
BARRICK OPENS ACADEMY AT CLOSED BUZWAGI MINE
Barrick has off icially opened it s w orld-class t raining ac ademy at t he ol d B uzwagi m ine, in li ne
with its mine closure objective of leaving a positive legacy after mining has finished.
The Barrick Academy is designed to offer tailor-made training
programs aimed at developing Barrick’s frontline managers to
grow both as individuals and as leade rs in th eir fields, while
equipping t hem w ith the ski lls to m anage the ir t eams m ore
effectively and to improve performance.
The Acad emy w ill be t raining mor e th an 2, 000 fo remen,
supervisors and superintendents from the Afr ica and Middle
East region in the next 24 months. L ooking ahead, we are
also ge aring u p to includ e our c ontractors an d e xpand th e
curriculum to cove r w ider disciplines, i ncluding f inancial
leadership, advanced computer literacy and safety courses.
The opening of the Barrick Academy follows the construction
of an airport terminal at Buzwagi’s Kahama airstrip in January
this y ear, w hich h as pa ved the w ay for a s cheduled airline
service that can serve more than 200 passengers at a tim e.
It is expected to b e a major catalyst f or economic growth in
the region.
According to Barrick’s chief operating officer for the Africa and
Middle East region, Sebastiaan Bock, the airport terminal and
Academy form part of Barrick’s plan to turn Buzwagi into a
Special Economic Zone. A feasibility study commissioned in
2021 showed that the creation of the Special Economic Zone
(SEZ had the potential to replace the mine as the region’s
economic driver and could sustainably create 3,000 jobs
annually, generate more than $150,000 each year from
service levies for the local municipality and deliver
approximately $4.5 million in employment taxes a year. The
Government of Tanzania approved the conversion of the
mine into a SEZ through a Government Notice that was
issued in February this year. A number of investors have
started the process of setting up manufacturing industries
inside this area.
“How we close our mines is just as important to us as how we
build and operate them. Our Buzwagi mine was a significant
economic powerhouse in the region for nearly 15 years
before it poured its last gold in 2021. From our perspective,
however, that is not the end of the story for Buzwagi as we
transform it into an alternative productive asset that will serve
the community for decades to come,” Bock said.
BARRICK FIRST QUARTER 2024 7 PRESS RELEASE
Mark Bristow greets the Honourable Anthony Mavunde, Tanaznia’s Minister of Minerals, at the opening of the Barrick Academy (pictured at top).
2024 Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS
2024 forecast
attributable production
(000s oz)
2024 forecast cost
of sales8 ($/oz)
2024 forecast total
cash costs9 ($/oz)
2024 forecast all-in
sustaining costs9 ($/oz)
Carlin (61.5%) 800 - 880 1,270 - 1,370 1,030 - 1,110 1,430 - 1,530
Cortez (61.5%)16 380 - 420 1,460 - 1,560 1,040 - 1,120 1,390 - 1,490
Turquoise Ridge (61.5%) 330 - 360 1,230 - 1,330 850 - 930 1,090 - 1,190
Phoenix (61.5%) 120 - 140 1,640 - 1,740 810 - 890 1,100 - 1,200
Nevada Gold Mines (61.5%) 1,650 - 1,800 1,340 - 1,440 980 - 1,060 1,350 - 1,450
Hemlo 140 - 160 1,470 - 1,570 1,210 - 1,290 1,600 - 1,700
North America 1,750 - 1,950 1,350 - 1,450 1,000 - 1,080 1,370 - 1,470
Pueblo Viejo (60%) 420 - 490 1,340 - 1,440 830 - 910 1,100 - 1,200
Veladero (50%) 210 - 240 1,340 - 1,440 1,010 - 1,090 1,490 - 1,590
Porgera (47.5%)17 50 - 70 1,670 - 1,770 1,220 - 1,300 1,900 - 2,000
Latin America & Asia Pacific 700 - 800 1,370 - 1,470 920 - 1,000 1,290 - 1,390
Loulo-Gounkoto (80%) 510 - 560 1,190 - 1,290 780 - 860 1,150 - 1,250
Kibali (45%) 320 - 360 1,140 - 1,240 740 - 820 950 - 1,050
North Mara (84%) 230 - 260 1,250 - 1,350 970 - 1,050 1,270 - 1,370
Bulyanhulu (84%) 160 - 190 1,370 - 1,470 990 - 1,070 1,380 - 1,480
Tongon (89.7%) 160 - 190 1,520 - 1,620 1,200 - 1,280 1,440 - 1,540
Africa & Middle East 1,400 - 1,550 1,250 - 1,350 880 - 960 1,180 - 1,280
Total Attributable to Barrick18,19,20 3,900 - 4,300 1,320 - 1,420 940 - 1,020 1,320 - 1,420
COPPER PRODUCTION AND COSTS
2024 forecast
attributable production
(000s tonnes)10
2024 forecast cost
of sales11 ($/lb)
2024 forecast C1
cash costs12 ($/lb)
2024 forecast all-in
sustaining costs12 ($/lb)
Lumwana 120 - 140 2.50 - 2.80 1.85 - 2.15 3.30 - 3.60
Zaldívar (50%) 35 - 40 3.70 - 4.00 2.80 - 3.10 3.40 - 3.70
Jabal Sayid (50%) 25 - 30 1.75 - 2.05 1.40 - 1.70 1.70 - 2.00
Total Attributable to Barrick20 180 - 210 2.65 - 2.95 2.00 - 2.30 3.10 - 3.40
ATTRIBUTABLE CAPITAL EXPENDITURES21
($ millions)
Attributable minesite sustaining7,21 1,550 - 1,750
Attributable project7,21 950 - 1,150
Total attributable capital expenditures21 2,500 - 2,900
2024 OUTLOOK ASSUMPTIONS AND ECONOMIC SENSITIVITY ANALYSIS
2024 guidance
assumption Hypothetical change Impact on EBITDA2
(millions)
Impact on TCC and
AISC9,12
Gold price sensitivity $1,900/oz +/- $100/oz ‘+/-$550 ‘+/-$5/oz
Copper price sensitivity $3.50/lb +/- $0.25/lb ‘+/- $110 ‘+/-$0.01/lb
BARRICK FIRST QUARTER 2024 8 PRESS RELEASE