Barrick Gold Corporation today reported increased earnings and production for its second quarter, in line with guidance, and said the Company was on track for a strong second half of the year. Net earnings 1 were up 25% and the attributable EBITDA
Barrick Gold Corporation today reported increased earnings
and production for its second quarter, in line with guidance,
and said the Company was on track for a strong second half
of the year.
Net earnings 1 were up 25% and the attributable EBITDA
margin2 was up 17% quarter on quarter to 48% with strong
operating cash flows of $1.16 billion and a material increase
in free cash flow 3 to $340 million. Net earnings per share
were up 24% to $0.21, adjusted net earnings per share 4
increased by 68% to $0.32, and the quarterly dividend was
maintained at $0.10 per share.
President and chief executive Mark Bristow said while
steering the Company towards the achievement of its 2024
guidance, management was also maintaining its focus on
value creation and growth.
Key projects designed to boost production and expand the
asset base include the recently permitted Goldrush mine in
Nevada which is ramping up to annual production in excess
of 400,000 ounces by 2028 5 while the adjacent Fourmile
project, 100% owned by Barrick, is shaping up as a new
Tier One6 mine with a potential gold production in excess of
500,000 ounces per annum over more than two decades.7
In the Dominican Republic, Pueblo Viejo is completing an
expansion project designed to increase gold production to
more than 800,000 ounces beyond 2040.8
Q22024
6 8 10
NEW
BIODIVERSITY
TOOL
KIBALI
EXPLORATION
SUCCESS
PORGERA
RESPONDS TO
MULITAKA
LANDSLIDE
TORONTO – AUGUST 12, 2024
ALL AMOUNTS EXPRESSED IN U.S. DOLLARS
NEVADA
PROSPECTS
4
KEY PROJECTS ADVANCE
AS BARRICK KEEPS TIGHT FOCUS
ON VALUE CREATION AND GROWTH
Results
Release
CONTINUED ON PAGE 3
HIGHER PRODUCTION AND LOWER
COSTS EXPECTED IN H2
POSITIONED TO DELIVER ON
GOLD PRODUCTION GUIDANCE FOR '24
Q2 NET EPS $0.21
Q2 ADJUSTED NET EPS4 $0.32
SHARE BUYBACK
RECOMMENCES
QUARTERLY DIVIDEND DECLARED
$0.10 PER SHARE
NYSE: GOLD
TSX: ABX
Key Performance Indicators
Financial and Operating Highlights
Financial Results Q2 2024 Q1 2024 Q2 2023
Realized gold price9,10
($ per ounce) 2,344 2,075 1,972
Realized copper price9,10
($ per pound) 4.53 3.86 3.70
Net earnings1
($ millions) 370 295 305
Adjusted net earnings4
($ millions) 557 333 336
Attributable EBITDA2
($ millions) 1,289 907 988
Net cash provided by operating
activities ($ millions) 1,159 760 832
Free cash flow3
($ millions) 340 32 63
Net earnings per share
($) 0.21 0.17 0.17
Adjusted net earnings
per share4 ($) 0.32 0.19 0.19
Attributable capital
expenditures11,12 ($ millions) 694 572 588
Operating Results Q2 2024 Q1 2024 Q2 2023
Gold
Production9
(thousands of ounces) 948 940 1,009
Cost of sales
(Barrick’s share)9,13 ($ per ounce) 1,441 1,425 1,323
Total cash costs9,14
($ per ounce) 1,059 1,051 963
All-in sustaining costs9,14
($ per ounce) 1,498 1,474 1,355
Copper
Production9,15
(thousands of tonnes) 43 40 48
Cost of sales
(Barrick’s share)9,16 ($ per pound) 3.05 3.20 2.84
C1 cash costs9,17
($ per pound) 2.18 2.40 2.28
All-in sustaining costs9,17
($ per pound) 3.67 3.59 3.13
Financial Position As at
6/30/24
As at
3/31/24
As at
6/30/23
Debt (current and long-term)
($ millions) 4,724 4,725 4,774
Cash and equivalents
($ millions) 4,036 3,942 4,157
Debt, net of cash
($ millions) 688 783 617
Best Assets
▪ In line Q2 performance positions Barrick to deliver on
gold production guidance for 2024
▪ Net earnings1 up 25% on Q1 and attributable EBITDA
margin2 up 17% to 48%
▪ Higher production and lower costs expected in H2
▪ Pueblo Viejo production growth and cost
improvement expected in H2 driven by recovery
optimization
▪ Porgera delivers successful plant completion test;
ramp-up to capacity remains on track for 2024
▪ Lower costs at Lumwana combined with higher
prices drive 124% increase in group’s quarterly
copper margins18
▪ Stronger H2 at Lumwana to drive delivery on group
copper production guidance for 2024
▪ Reko Diq and Lumwana feasibility studies on track
for completion by year-end
▪ Ten rigs now drilling extensive definition program at
Fourmile; initial results confirm modelled extensions
to mineralization, validating the geological model
▪ Results from disciplined brownfields exploration on
track to replace annual depletion and identify further
upside opportunities around Barrick’s operations in
North America, Latin America and Africa & Middle
East
Leader in Sustainability
▪ 33% decrease in total recordable injuries from Q1
▪ Lost Time Injury-free month for the group in June
▪ Finalization of Barrick’s Biodiversity tool to measure
No Net Loss and Net Gain
▪ Lumwana Environmental and Social Impact
Assessment (ESIA) completed and submitted to
authorities for review
▪ Reko Diq ESIA on track to be submitted in Q3
▪ Porgera provides humanitarian and logistical support
to communities affected by the Mulitaka landslide
Delivering Value
▪ Q2 operating cash flow of $1.16 billion — up 53% on
Q1 — and free cash flow 3 of $340 million
▪ 24% increase in net earnings per share quarter on
quarter to $0.21 and 68% increase in adjusted net
earnings4 per share to $0.32
▪ Share buyback recommences capturing embedded
value in business and growth pipeline
▪ Debt, net of cash reduced by 12% quarter on quarter
▪ $0.10 per share dividend declared
BARRICK SECOND QUARTER 2024 2 PRESS RELEASE
CONTINUED FROM PAGE 1
“On the copper side of the business, two world-class
projects are set to deliver into a rising price and demand
market. In Zambia, the Lumwana super pit expansion
will increase the mine’s production from 130,000 tonnes
to 240,000 tonnes per annum 19 while the Reko Diq
project in Pakistan is targeting 400,000 tonnes of
copper and 500,000 ounces of gold per annum 20,”
Bristow said.
“The strong cash flows from our operations will fund
these and other developments while our robust balance
sheet will support the forecast growth and dividends. In
the meantime, Barrick’s unparalleled ability to replace
reserve depletion organically will continue to enhance
the scope and quality of our existing asset base.”
During the past quarter Barrick launched what is
believed to be the industry’s first comprehensive
biodiversity assessment tool. It was produced in
collaboration with external experts and incorporates
local knowledge and priorities to establish baselines and
identify residual impacts. The development of the tool is
another milestone in achieving Barrick’s differentiated
sustainability strategy aimed at making a tangible
difference on the ground, where it matters most.
“We are using this tool at all our sites which allows us to
quantify both positive and negative impacts on
biodiversity across our operations worldwide. This
informed approach will guide targeted actions to take
our already established rehabilitation and key
biodiversity conservation initiatives to another level,”
Bristow said.
Q2 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 Q2 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 Q2 DIVIDEND
AND BUYS BACK SHARES
Barrick today announced the declaration of a dividend of $0.10 per share for the second
quarter of 2024. The dividend is consistent with the Company’s Performance Dividend Policy
announced at the start of 2022.
The Q2 2024 dividend will be paid on September 16,
2024 to shareholders of record at the close of business
on August 30, 2024.
In addition to the dividend, Barrick repurchased 2.95
million shares during the second quarter under the $1
billion share buyback program that was announced in
February 2024.
“The continued strength of our balance sheet and our
world-class gold and copper asset base allow us to
distribute a robust quarterly dividend whilst maintaining
ample liquidity to invest in growing our business.
Additionally, we took the opportunity to buy back stock
at a compelling valuation,” said senior executive vice-
president and chief financial officer Graham
Shuttleworth.
BARRICK SECOND QUARTER 2024 3 PRESS RELEASE
BARRICK’S STRATEGIC FOCUS
ON TIER ONE ASSETS DELIVERS TWO
HIGH-POTENTIAL PROSPECTS IN NEVADA
Barrick’s sector-leading portfolio of Tier One 6 gold mines is set to be expanded significantly
as it advances the development of the recently permitted Goldrush mine, part of Nevada Gold
Mines, and the adjacent Fourmile project, which is 100% owned by Barrick.
Goldrush is successfully ramping up underground
production, aiming for a more than 35% increase next
year, heading to an annual output in excess of 400,000
ounces by 2028 (100% basis). 5 The mine’s
development plan incorporates drill platform access to
support future growth through conversion of the mineral
resource base, currently standing at 9.8 million ounces
at 5.88g/t within indicated with a further 4.2 million
ounces at 5.4g/t in the inferred category (100% basis).21
At Fourmile, drilling has confirmed a grade which is
consistently double that of Goldrush’s along the 2.5-
kilometer strike length of mineralization. Ten diamond
core rigs are currently on-site drilling in support of an
updated mineral resource statement at the end of the
year. Prefeasibility options are being assessed for a
year-end decision on an asset that is demonstrating the
potential for annual production in excess of 500,000
ounces over more than two decades. 7 Fourmile’s
proximity to the permitted Goldrush mine will facilitate its
advancement.
“This is a unique two-in-one opportunity to expand
Barrick’s value foundation in Nevada,” says Mark
Bristow. “It highlights the great growth opportunities
embedded in our asset base and our ability to identify
and extract the enormous value they represent.”
BARRICK SECOND QUARTER 2024 4 PRESS RELEASE
GIANT COPPER PROJECT
STARTS TAKING SHAPE IN PAKISTAN
At a time when new copper opportunities are rare to non-existent, Barrick is demonstrating
the value of its long-term growth strategy and its early decision to expand its copper portfolio
by rapidly advancing the Reko Diq project in Pakistan.
Scheduled to deliver its first concentrate before the end
of 2028, Reko Diq is one of the world’s largest
undeveloped copper-gold deposit. With an estimated life
of mine of 40 years, and with exploration targets
supporting the potential to double that, Reko Diq will not
only elevate Barrick into the front rank of copper
producers, but is destined to economically transform the
Balochistan province as well as to be a major growth
engine for Pakistan.20
The Reko Diq feasibility study remains on track for
completion by the end of this year and, in the meantime,
the construction of key enabling infrastructure is
underway. Long lead items are being ordered so that
work on the processing facility construction can start
immediately once the final investment approval is given.
The workforce on site is growing, and in line with
Barrick’s global policy of local recruitment, 77% of direct
employees are from Balochistan and 94% are Pakistani
nationals. To build capacity as the project grows — by
the end of next year it will be employing an estimated
2,500 people — a skills-based technical training center
has been established for young people from the area.
The first group of 60 men and 80 women has been
enrolled as trainees. At Barrick’s Veladero mine in
Argentina, nine young Pakistani graduates are being
trained for leadership roles at Reko Diq.
Central to the success of the project is the
establishment and maintenance of a strong social
license to operate and Reko Diq is delivering significant
social advancement programs shaped by the
community development committees it established.
These include the establishment of two local healthcare
centers, in partnership with a leading healthcare
network, which provide free medical services to the
community. All four local villages now have access to
potable water and five primary schools have been
opened.
BARRICK SECOND QUARTER 2024 5 PRESS RELEASE
BARRICK’S LEADERSHIP IN SUSTAINABLE MINING
CONFIRMED BY NEW BIODIVERSITY TOOL
In a pioneering development for sustainable mining, Barrick has put into practice a tool
designed to transform how the Company assesses its impact on biodiversity.
This innovative step marks a significant departure from
traditional methods of qualifying impacts, empowering
Barrick to measure its biodiversity impacts, both
negative and positive, with greater accuracy and clarity.
The tool, named the Biodiversity Residual Impact
Assessment tool (BRIA), is the product of years of
research and collaboration with third-party experts.
Driven by a commitment to align corporate goals with
rigorous scientific standards, BRIA goes beyond mere
estimations and guesswork, offering tangible metrics
that inform actionable conservation strategies and, in
time to come, targets to measure against.
“At Barrick, we recognize the importance of setting
goals that are not only ambitious but also grounded in
scientific evidence,” says Grant Beringer, Barrick’s
sustainability executive. “This tool allows us to quantify
both positive and negative impacts on biodiversity
across our operations worldwide. This capability is an
important step in our journey towards sustainable
mining.”
Central to Barrick's approach is the integration of Key
Biodiversity Features (KBFs) into its Biodiversity
Standard. These features, identified through
comprehensive ecological assessments and baselines,
represent critical habitats and species that are
prioritized for conservation or rehabilitation efforts. BRIA
facilitates the development of Measurable Conservation
Actions (MCAs), making sure that every initiative is
tailored to maximize positive outcomes for biodiversity.
It’s a tool that was designed largely for Barrick’s
operations but will also be used to quantify impacts on
some of its external conservation initiatives such as the
support it provides to the Garamba National Park in the
DRC.
The tool has already been trialed at two of its
operations, Carlin and Pueblo Viejo, and has quantified
the positive impacts Barrick has had in terms of its
efforts on riparian habitat restoration and conservation
in both regions. The tool will elevate the Biodiversity
Action Plans (BAPs), developed by each site and part of
Barrick’s Sustainability Scorecard, by helping the sites
focus their actions on those areas that are the most
important from a habitat perspective. The tool also
unlocks an opportunity to direct its reclamation actions
at its closed mines to ensure that maximum biodiversity
values at these sites are achieved.
“Our commitment to biodiversity conservation is not just
a component of our sustainability strategy; it's a
fundamental part of how we do business,” says Mark
Bristow. “With BRIA we are able to measure, monitor
and mitigate our impact on biodiversity with greater
certainty, empowering us to take proactive steps
towards preserving natural ecosystems, while
enhancing the resilience of species and habitats.”
The deployment of BRIA underscores Barrick's
leadership in sustainable mining and sets a new
standard for the industry. By embracing data-driven
insights and fostering partnerships with local
communities and conservation experts, Barrick aims to
achieve meaningful and lasting impacts on biodiversity
conservation.
BARRICK SECOND QUARTER 2024 6 PRESS RELEASE
In the Dominican Republic, the Margajita River has been restored to its natural state, bringing back fishing activity to the area.
PIONEERING PROCESS CONTROL IMPROVEMENTS
Harnessing the latest technology to improve process controls has enabled Barrick to increase throughput
and advance plans to reduce cyanide consumption.
Nevada Gold Mines’ Gold Quarry roaster — the older of
the complex’s two roasters — is being extensively
upgraded in a $67 million project (on a 100% basis)
designed to increase its total throughput rate by 20%,
improving cost efficiency and gold production. The final
phase of the upgrade started late in Q2 and includes
additional quench and solution cooling capacity and other
major components. The project also includes the
replacement of the sulphur dioxide converter supporting
our emission controls.
At Kibali in the Democratic Republic of Congo, a cyanide
recovery plant has been commissioned in what is the
mining industry’s first full-scale application of an upflow
reactor technology, which recycles the cyanide instead of
destroying it. The plant is achieving its cyanide reduction
design performance, maintaining cyanide in the tailings to
below the 50ppm target, while delivering an above-
expectation additional gold recovery of 0.85%.
In the hunt for alternative leaching agents, testwork at
Bulyanhulu in Tanzania has shown that a glycine-assisted
leach in the cyanide-in-leach circuit significantly reduces
cyanide consumption and reduces detoxification
requirements. Glycine amenability bulk and pilot tests are
also being conducted at Kibali and Loulo in Africa, as well
as Nevada Gold Mines and at Veladero in Argentina,
alongside evaluation of other lixiviant products.
SHAPING THE NEXT GENERATION OF LEADERS
Reko Diq, Barrick’s mega-project in Pakistan, is still at the infrastructure pre-construction stage but the
Company is already investing in the creation of a local skills pool from which the future mine will draw its
managers and operators.
This has started at the very beginning of the educational
process, with the establishment of five junior schools
where none had previously existed in this remote and
underdeveloped part of Balochistan and extends all the
way to the Veladero mine in Argentina, where Barrick has
sent a cohort of promising young Pakistani graduates to
learn firsthand how a successful mine is run.
“Here and throughout the global Barrick Group our goal is
to cultivate a new generation of employees by equipping
them with the tools required to address the technical,
operational and managerial challenges presented by a
dynamic mining industry in a rapidly evolving world,” says
Mark Bristow.
“Barrick has the industry’s best assets and we need the
best people to extract their full value. Our policy is to
employ our host countries’ nationals and then to empower
them through a combination of theoretical and practical
training, hands-on field experience and personalized
mentoring to run our world-class mines. We demonstrated
the success of this approach decades ago in Africa where
we elected to create our own skills pool rather than to rely
on expatriates, and where our Tier One mines have long
been run almost entirely by local workforces and
management teams.”
The Africa & Middle East region continues to be a leading
force in talent development. The recently established
Barrick Academy at the former Buzwagi mine in Tanzania
has already produced 582 graduates and is aiming to train
a further 2,000 foremen and supervisors over the next two
years. Both the North America and Latin America regions
are developing similar programs as the Barrick Academy
concept is rolled out across the group.
In Nevada, a specialized training mine was established in
2022 to equip operational new hires, particularly those with
no mining experience, to work safely and efficiently. It has
since graduated more than 600 operators and is expanding
its curriculum to cater to supervisors.
Pueblo Viejo in the Dominican Republic has inaugurated a
Leadership School with a first intake of 32 employees in
partnership with the country’s National Institute of
Education for Technical Professionals. Management
experts will lead a broad range of courses designed to
guide the development of future leaders within the
workforce. At Veladero in Argentina, where there is a
strong focus on increasing the proportion of female
employees, 24 women from the local community have
been enrolled in a new Truck Operators Training Program
which combines theoretical knowledge with hands-on
practice in the field.
“The cornerstone of Barrick’s global leadership
development framework is our executive and management
programs, reserved for high-potential performers. Since its
inception in 2019, 22 employees have graduated from the
executive program and 155 from the management
program. We are well placed to ensure that Barrick will be
a forward-facing, modern mining business far into the
future,” says Bristow.
BARRICK SECOND QUARTER 2024 7 PRESS RELEASE
EXPLORATION SUCCESS, CAPITAL INVESTMENT
AND RESERVE GROWTH TO SUSTAIN KIBALI’S
PRODUCTION PROFILE
Africa’s largest gold mine, Kibali, continues to deliver growth as its strong record of
replenishing reserves and resources, and further investment in technology and capacity,
position it to sustain its annual production of more than 700,000 ounces (on 100% basis) past
the current 10-year horizon to 15 years and beyond.22
Speaking to local media and other stakeholders, Mark
Bristow said Kibali was not only Africa’s largest gold
mine but also its most automated and, thanks to its
three hydropower stations, a leader in renewable
energy. When its back-up solar power plant and battery
storage system are commissioned next year, the
renewable component of its energy mix will increase to
85%.
“When we started building Kibali 14 years ago, this was
one of the DRC’s most underdeveloped regions. The
value we created and the infrastructure we built here
have since transformed it into a new economic frontier
and a flourishing commercial hub, with a community that
has grown from 30,000 to over 500,000 people. We’ve
promoted this growth through investment in community
development and partnering with local businesses we
have mentored. Our Azambi power station, for example,
was built by an all-Congolese team. Since 2010, Kibali’s
payments to local contractors and suppliers have
amounted to almost $2.7 billion,” Bristow said.
“In addition, Kibali has written a new chapter in Barrick’s
long support for Africa’s biodiversity by partnering with
African Parks and the DRC Government to re-introduce
a sustainable population of white rhino to the DRC’s
Garamba National Park, which the mine also supports
in other ways. This means that, together with the Barrick
coffee project in the Haut-Uele region aimed at
revitalizing the once vibrant Robusta coffee industry
which Isiro was previously renowned for, we are not
only looking after our host countries in the present but
also to their national heritage in the future.”
Bristow said Kibali was built on partnerships with its
stakeholders, notably the government and its host
communities. Based on its success, Barrick was ready
to invest in new gold and copper opportunities in the
DRC, provided the government continued to build
alongside it.
BARRICK SECOND QUARTER 2024 8 PRESS RELEASE
Mark Bristow (center) visits Kibali in May.