Latin America regions has positioned them to meet the top end of their guidance for the year. At the same time, Nevada Gold Mines (NGM) posted a quarter-on-quarter improvement and, with its Carlin mill operations now restored, is set to end 2021 with an enhanced quarter,
London, 4 November 2021 — Strong third quarter
production from its Africa and Middle East (AME) and
Latin America regions has positioned them to meet the
top end of their guidance for the year. At the same time,
Nevada Gold Mines (NGM) posted a quarter-on-quarter
improvement and, with its Carlin mill operations now
restored, is set to end 2021 with an enhanced quarter,
positioning Barrick for a strong finish to the year.
The company’s Q3 results, published today, report
attributable gold production for the quarter of 1.09
million ounces and 3.23 million ounces for the year
to date. Attributable copper production for the quarter
was 100 million pounds and 289 million pounds for the
year to date. Net earnings per share were 20 cents and
adjusted net earnings per share1 were 24 cents.
Presenting the results, president and chief executive
Mark Bristow said the operating cash flow of $1,050
million and the free cash flow 2 of $481 million for Q3
would further support an already strong balance sheet
and the funding of Barrick’s capital allocation priorities.
He noted that the sustainable quarterly dividend of
9 cents per share and the payment of the final $250
million3 tranche of the $750 million return of capital
distribution would combine to lift the total cash return
to shareholders to a record level of approximately $1.4
billion during 2021.
Q32021
6 6 9
INDUSTRY
ACTION ON
CLIMATE
CHANGE
FASTER, SAFER
GOLD ANALYSIS
AT BULYANHULU
SECURING
NGM'S STATUS
AS INDUSTRY
LEADER
ALL AMOUNTS EXPRESSED IN US DOLLARS
VELADERO
BACK ON
WORLD-CLASS
TRACK
5
Q3 OPERATING RESULT SETS BARRICK UP
FOR STRONG FINISH TO 2021
* Per share amount is estimated based on issued and outstanding Barrick shares as of September 30, 2021 and is subject to change.4
OPERATING CASH FLOW
$1,050 MILLION
NET EPS ADJUSTED NET EPS1
20 CENTS 24 CENTS
QUARTERLY DIVIDEND
9 CENTS
PER
SHARE
3rd RETURN OF CAPITAL TRANCHE*
~14 CENTS
PER
SHARE
Results
Release
CONTINUED ON PAGE 3
POSITIONED TO DELIVER ON
ANNUAL PRODUCTION GUIDANCE
COPPER ASSETS
BOLSTER EARNINGS
FREE CASH FLOW2
$481 MILLION
Key Performance Indicators
Financial and Operating Highlights
Financial Results Q3 2021 Q2 2021 Q3 2020
Realized gold price5
($ per ounce) 1,771 1,820 1,926
Net earnings
($ millions) 347 411 882
Adjusted net earnings1
($ millions) 419 513 726
Net cash provided by operating
activities ($ millions) 1,050 639 1,859
Free cash flow2
($ millions) 481 (19) 1,311
Net earnings per share
($) 0.20 0.23 0.50
Adjusted net earnings
per share1 ($) 0.24 0.29 0.41
Attributable capital
expenditures6 ($ millions) 456 518 436
Operating Results Q3 2021 Q2 2021 Q3 2020
Gold
Production7
(000s of ounces) 1,092 1,041 1,155
Cost of sales (Barrick's share)8
($ per ounce) 1,122 1,107 1,065
Total cash costs9
($ per ounce) 739 729 696
All-in sustaining costs9
($ per ounce) 1,034 1,087 966
Copper
Production7
(millions of pounds) 100 96 103
Cost of sales (Barrick's share)8
($ per pound) 2.57 2.43 1.97
C1 cash costs10
($ per pound) 1.85 1.83 1.45
All-in sustaining costs10
($ per pound) 2.60 2.74 2.31
Q3 2021 Results Presentation
Webinar and Conference Call
President and CEO Mark Bristow will host a live
presentation of the results today from London at 15:00
GMT/11:00 EDT, 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 Q3 2021 presentation materials will be available on
Barrick’s website at www.barrick.com and the webinar will
remain on the website for later viewing.
▪ Quarter-on-quarter improvement positions Barrick
to deliver on annual production guidance
▪ Strong production from the AME and Latin
America regions places both regions at top end of
annual guidance range
▪ Nevada shows strong quarter on quarter
performance on the back of improved run time at all
major processing facilities
▪ Carlin mill operations restored at end of the
quarter setting up for strong Q4
▪ Copper assets deliver incremental production
and bolster earnings for Barrick
▪ Goldrush Notice of Intent published, successful
processing of first bulk sample supports additional
reserve conversion at year end
▪ Balance sheet strength supported by operating cash
flow of $1,050 million
▪ Net earnings per share of 20 cents; adjusted net
earnings per share1 of 24 cents
▪ Porgera makes progress towards reopening
▪ South Arturo / Lone Tree asset swap streamlines
NGM portfolio and adds value
▪ 22% year-on-year decrease in the year-to-date
TRIFR11 highlights increased focus on safety
▪ Year-to-date water efficiency (reuse and recycling)
of 83%
▪ Greenhouse gas reduction roadmap advances as
NGM gets approval to double solar capacity to
200MW
▪ Veladero completes construction of powerline
from Chile
▪ Strong project development and brownfields
results from North America and AME point to
reserve replacement net of depletion for the group
▪ Drive to expand portfolio adds exploration
projects in five countries
▪ Donlin board approves additional funding to
advance studies and plan for a winter drilling
program
▪ Barrick declares $0.09 quarterly dividend per
share in addition to payment of third $250 million12
capital return tranche (~14 cents per share4)
BARRICK THIRD QUARTER 2021 2 PRESS RELEASE
CONTINUED FROM PAGE 1
“More than two years after the merger, we are getting to
where we want to be, with the industry’s best asset base in
the form of six Tier One 13 gold mines and a well-balanced
portfolio of high-quality growth opportunities. In Nevada, the
publication of an official Notice of Intent marks another
advance in the development of the world-class Goldrush
project, where the successful processing of the first bulk
samples points to an additional reserve conversion by the
end of the year,” he said.
“In Argentina, the commissioning of the new heap leach
facility at Veladero, defined as an at-risk asset at the time of
the merger, has put the mine back on track to get back to its
past performance as it ramps up production. In Tanzania, we
have completely revived the moribund Bulyanhulu mine and it
too is now back in business and ramping up production. In
Alaska, the 2021 drilling program has been completed at
Donlin, one of the largest undeveloped gold deposits in the
world, and we’re now updating our models and preparing for
an early start to the next phase.”
The Pueblo Viejo expansion project in the Dominican
Republic is at the permitting stage for the new tailings storage
facility. The project is expected to extend the Tier One mine’s
life to beyond 2040 and has the potential to convert
approximately 9 million ounces of measured and indicated
resources to proven and probable reserves.14
Bristow said results from successful brownfields exploration,
particularly in North America and Africa, indicated that the
group is on track to replace its gold reserves net of depletion
in 2021. The drive to expand its portfolio and extend its global
footprint has added new exploration projects in five countries.
Barrick has also been advancing its greenhouse gas (GHG)
reduction strategy with NGM starting construction of its solar
power plant with initial capacity of 100MW and the permit
received to double this to 200MW, and Veladero completing
construction of its cross-border link-up with the Chilean
national power grid — a global leader in renewable energy.
“Barrick is driven by value creation and by any measure
we’ve been successful so far. But ours is a long-term vision
which looks far beyond our major operations’ current 10-year
business plans and our ceaseless pursuit of new
opportunities is continuing to deliver exciting future
prospects,” Bristow said.
THIRD $250 MILLION RETURN OF CAPITAL TRANCHE
AND QUARTERLY DIVIDEND
Barrick today announced that the third $250 million3 tranche (approximately $0.14 per share4) of
the return of capital distribution totalling $750 million will be paid on December 15, 2021 to
shareholders of record at the close of business on November 30, 2021.
This will complement the $0.09 per share dividend declared
by the Barrick Board of Directors for the third quarter, which
will also be paid on December 15, 2021 to shareholders of
record at the close of business on November 30, 2021.12
This follows the approval by shareholders at Barrick’s Annual
and Special Meeting on May 4, 2021 of the total $750 million
return of capital distribution. The first $250 million tranche
was paid on June 15, 2021 and the second $250 million
tranche was paid on September 15, 2021.
“We are pleased that the combination of our quarterly
dividend and the $750 million return of capital distribution
have provided our shareholders with a record level of cash
returns totalling approximately $1.4 billion during 2021 whilst
our strong operational and financial performance during the
year has allowed us to continue to invest in our business and
has set us up well to continue to provide meaningful returns
to shareholders going forward,” said senior executive vice-
president and chief financial officer Graham Shuttleworth.
BARRICK THIRD QUARTER 2021 3 PRESS RELEASE
Nevada Senator Catherine Cortez Masto (center) visits the Goldstrike operation at Nevada Gold Mines in August.
NEW MODEL SHOWS 20-YEAR LIFE POTENTIAL
FOR BULYANHULU
How Barrick transformed a derelict mine into a world-class asset
Two years ago, the Bulyanhulu gold mine in Tanzania was on
care and maintenance, with only its small tailings
reprocessing operation still limping along: a burden to its
shareholders and the state.
Then Barrick took over, rebuilt and reopened Bulyanhulu,
now transformed beyond recognition into one that, along with
sister mine North Mara, has the potential to produce more
than 500,000 ounces of gold per year 14 and, according to the
latest geological model, can maintain a consistent production
profile to 2040 and beyond.
“Bulyanhulu had effectively been trashed by its previous
operators who also destroyed its relationship with its
community as well as the government. But Barrick’s
geologists saw the value in this unloved mine and we set
about unlocking it, applying our core business principles,”
said president and chief executive Mark Bristow.
The first step was to mend bridges with the state, which
resulted in the establishment of the groundbreaking Twiga
Minerals Corporation, a joint venture between Barrick and the
government of Tanzania, which oversees the management of
the Tanzanian mines and the equal sharing of the economic
benefits they create.
The drill database was recompiled and validated,
underground development was re-surveyed, new mineral
resource and geotechnical block models were generated and
mine designs were fully updated.
The processing plant was completely refurbished and ramped
up to a 145tph throughput, as were the vertical shaft and
materials handling infrastructure. A secondary crushing and
sampling circuit was introduced along with an open conical
stockpile and reclamation facility designed to improve mill
feed. During the past quarter, it commissioned a
PhotonAssayTM laboratory, the first of its kind in Africa and in
Barrick’s global operations.
Bulyanhulu has also moved away from shipping concentrates
abroad for processing and is now producing gold bars on site.
In the meantime, ongoing geometallurgical testwork could
unlock further resources within developed mine areas while
brownfields exploration probes the potential within and
outside the Bulyanhulu permit for new mining fronts.
As the mine moves into the final stages of its ramp-up, the
workforce has increased from 155 to 878, of whom 94% are
Tanzanians, with 39% drawn directly from surrounding
communities. Bulyanhulu is also increasing its economic
support for local businesses, with 70% of its procurement
now spent with Tanzanian contractors and suppliers.
BARRICK THIRD QUARTER 2021 4 PRESS RELEASE
VELADERO BACK ON WORLD-CLASS TRACK
At the time of the Barrick-Randgold merger, Veladero in Argentina was identified as an asset that
was seriously at risk. The operation was running out of leach stacking space and its relationship
with the government and the surrounding community had deteriorated to the point where it no
longer had a social licence to operate.
The Covid-19 pandemic compounded its problems, with
Argentina’s lockdown impacting on production as well on the
progress of the mine’s two capital projects: construction of a
new heap leach facility and the connection to the Chilean
national power grid.
Barrick president and chief executive Mark Bristow says the
turnaround achieved by the new Latin America management
team after the merger is extraordinary. Veladero is poised to
come in at the top of its production guidance range for this
year, the Phase 6 heap leach project has been commissioned
successfully and stakeholder relations have improved to the
extent that Barrick is now the preferred mining partner in the
country’s San Juan province.
Mine life has increased to more than 10 years on the back of
successful resource conversions in the Cuatro Esquinas
pushback and a new life of mine strategy designed to
optimize the orebody. Exploration has resumed in the
Veladero area and drilling at Lama — the Argentinian half of
the border-straddling the Pascua-Lama project — has
confirmed the existence of a large copper-gold porphyry
system at depth.
Bristow says over the past two years Barrick has invested
$219 million 14 in its goal of making Veladero another of its
Tier One mines. Going forward, work has already started on a
Phase 7 leach pad and on increasing efficiencies, among
other things by re-establishing the conveyor system from the
crusher to the leach pads to reduce haul distances and
greenhouse (GHG) emissions. In October, construction was
completed on the powerline from Chile, which is expected to
reduce costs and GHG emissions, cutting diesel consumption
by 23 million litres and CO 2 equivalent emissions by 100,000
tonnes.
To mark the completion of the Phase 6 project, Veladero
established a community development fund, in partnership
with San Juan, which will dedicate 1.5% of the mine’s gold
sales to the improvement of the infrastructure in the province.
Its commitment to the surrounding communities has also
been demonstrated by the launch of a mining school and the
use of local contractors for the Phase 6 and Phase 7 projects.
“Our support for local suppliers and contractors provides the
community not only with the opportunity to develop their skills
but also to partner with the mine in creating shared value,”
says Marcelo Alvarez, executive director Argentina and Chile.
Veladero has also been successful in recruiting women in
what has traditionally been a male-dominated industry.
Fifteen of the 24 participants in its current technical training
program are women and a further 17 are being trained as
truck drivers.
On another front, its staff have been leading the charge in the
fight against Covid-19. Veladero is closing in on being fully
vaccinated, with 99.7% having received their first dose and
74% the second.
“It all starts with people,” says Mark Bristow. “And at this
mine, 15,000 feet above sea level high in the Andes, a
remarkable recovery in the face of adversity has been driven
by its leadership and its workforce.”
BARRICK THIRD QUARTER 2021 5 PRESS RELEASE
MINING INDUSTRY NEEDS STRONG COLLECTIVE ACTION
ON CLIMATE CHANGE
Reducing emissions to counter the causes of climate change requires strong collective action by
the mining industry, Barrick president and chief executive Mark Bristow says.
Bristow hailed the collective commitment by the International
Council on Mining and Metals (ICMM) to a goal of net zero
greenhouse gas emissions by 2050 in line with the
recommendations of the Paris Agreement and said it
represented an integrated approach that struck the right
balance between environmental, social and economic needs.
Barrick is a member of the ICMM and its Climate Change
Advisory Group.
“Barrick already has a clear scientifically based emissions
reduction roadmap which targets a 30% cut by 2030 against
our 2018 baseline and a net zero outcome by 2050, in line
with ICMM’s goal,” Bristow said.
The company’s group sustainability executive, Grant
Beringer, said a series of carbon-reducing initiatives was
already being implemented across Barrick’s global
operations. At NGM, the world’s largest gold producing
complex, which is operated and majority-owned by Barrick,
these included projects such as the construction of a new
solar power plant and the conversion of the TS power plant
from coal to natural gas. These projects will support NGM’s
transition from coal power to a dual energy solution which will
reduce the complex’s carbon emissions by as much as 50%.
BARRICK COMMISSIONS AFRICA’S FIRST
PHOTONASSAY LABORATORY
Barrick, in partnership with MSALABS Ltd, has successfully installed a Chrysos PhotonAssay TM
laboratory at its Bulyanhulu mine in Tanzania — the first in Africa and in its global operations.
This new technique delivers faster, safer and more accurate
analysis of gold, silver and complementary elements by non-
destructive measurement of larger and more representative
samples in as little as two minutes, enabling rapid turnaround
of critical operational information that drives optimization
throughout the mining value chain.
The system provides an environmentally friendly, chemical-
free, more sustainable replacement for traditional fire assay
methods, significantly reducing CO 2 emissions and
hazardous waste.
Introducing the new system to media at the mine, Barrick
president and chief executive Mark Bristow said it was part of
the group’s continuing drive to harness technological
innovation in the service of operational excellence,
occupational safety and environmental care.
BARRICK THIRD QUARTER 2021 6 PRESS RELEASE
LOULO-GOUNKOTO’S NEW UNDERGROUND MINE
RAMPS UP AS EXPLORATION CONTINUES TO
EXTEND COMPLEX’S LIFE
The Loulo-Gounkoto gold complex is set to remain a major contributor to the Malian economy
well into the future as it continues to replace the ore depleted by mining, says Barrick president
and chief executive Mark Bristow.
Mines operated in Mali by Barrick and its predecessor
Randgold have spent some $8 billion 14 in the country in the
form of taxes, royalties, salaries and payments to local
suppliers over the past 24 years. To date this year, it has paid
$318 million 14 to the government in taxes, royalties and
dividends and invested more than $13 million 14 in community
wellbeing projects ranging from health and education to
economic development initiatives such as its Business
Accelerator program, designed to equip budding
entrepreneurs with management skills.
Bristow says Loulo-Gounkoto was on track to meet its annual
production guidance, with its new underground mine at
Gounkoto — the complex’s third underground operation —
ramping up production. Through successful exploration it is
on track to increase mineral reserves net of depletion for the
third successive year and promising results from the Yalea
Ridge and Gounkoto-Faraba targets reaffirm the potential for
further life-of-mine extensions.
“Loulo-Gounkoto is one of the world’s greatest gold mining
operations and it continues to confirm its status as a member
of the industry’s elite Tier One club as well as the largest
private sector contributor to Mali’s GDP,” Bristow says.
“In addition to the enormous value it creates for its
stakeholders, Loulo-Gounkoto also aspires to a high level of
social responsibility. Almost 40% of employees have been
vaccinated against Covid-19 and 335 people have been
vaccinated in the surrounding community. Security staff and
other employees who come into contact with the community
have undergone rigorous training in human rights. Work is
also under way to secure the new certification standardized
by the International Cyanide Management Institute.”
Loulo-Gounkoto is maintaining its commitment to the
employment and advancement of host country nationals, in
line with Barrick’s global policy, and people from the nearby
Kenieba village have been successfully trained to operate
key equipment at the new Gounkoto underground mine. The
complex is almost entirely staffed and managed by Malian
citizens.
BARRICK THIRD QUARTER 2021 7 PRESS RELEASE
PUEBLO VIEJO PROGRESSES LIFE-EXTENSION PROJECT
Barrick’s Pueblo Viejo mine is continuing to advance a plant expansion and tailings storage
facility project designed to extend its life to 2040 and beyond.
President and chief executive Mark Bristow says that so far
this year the Tier One mine has paid $522 million in direct
and indirect taxes, which brings its total tax payments since it
went into commercial production in 2013 to just under $3
billion.14 The extension of its life means that it would continue
to be a major creator of value for the Dominican Republic and
its people far into the future.
“Of the mine’s 2,500 employees, 97% are Dominicans, many
drawn from its surrounding communities which have all
benefited substantially from its investment in upliftment
programs. At present, the mine is involved in such programs
in 58 surrounding communities. These include an
agribusiness project intended to improve cacao cultivation in
the area. In line with Barrick’s global policy of favoring local
contractors and suppliers, Pueblo Viejo has also promoted
the development of the local economy, spending more than
$160 million with them over the past eight years14,” he says.
Bristow says that Pueblo Viejo’s management had been very
successful in addressing the environmental liabilities left by
the mine’s former operator, significantly improving the water
quality of the two nearby rivers. The drive for gender diversity
was also paying dividends, with women now accounting for
16% of the workforce.
“Our goal in the Dominican Republic, as elsewhere in the
world, is to create long-term value for our stakeholders
through our strategy of sustainable development. Pueblo
Viejo’s expansion project has the potential to double the
enormous contribution it has already made to the Dominican
Republic’s economy. Without this project, however, that
contribution could end soon,” he says.
INDUSTRY LEADER KIBALI CONTINUES TO
ADVANCE AUTOMATED MINING
The Kibali gold mine remains on track to achieve its production guidance for the year and grow
its mineral reserves net of depletion, securing its future as a Tier One operation for at least
another 10 years.
Barrick president and CEO Mark Bristow says at the same
time continuing investment in technological innovation is
keeping Kibali at the forefront of developments in automated
mining.
Machine learning has been implemented at the mine’s three
hydropower stations and reactive control of the enlarged
battery installation will further reduce the need for back-up
diesel generation, shrinking Kibali’s already relatively small
carbon footprint. New automation software for the
underground haulage loaders has been installed and the
commissioning of a system for remote stope bogging now
enables operators to control loaders from surface.
“Surface control is safer and more efficient, and it also
creates employment opportunities for women in an industry
where these are not abundant. It’s worth noting that all these
operators are Congolese, as Kibali continues to employ and
upskill locals in line with Barrick’s global policy of giving
preference to host country nationals. Congolese citizens
currently make up 94% of Kibali’s workforce including its
leadership,” Bristow says.
“Five thousand of our employees and contractors go home to
surrounding villages at the end of their shifts and the
wellbeing of these communities is consequently a prime
concern. This is exemplified by the effectiveness of Kibali’s
anti-Covid-19 campaign which included the construction of a
community treatment facility. With the support of the
Congolese health authorities, we secured a supply of the
AstraZeneca vaccine and to date 21% of employees and
contractors have been vaccinated compared with the DRC’s
countrywide average of 0.15%.”
Bristow says the growth of Kibali had catalyzed and
supported the emergence of a thriving local economy in a
region previously largely reliant on subsistence farming. In
the year to date, the mine has spent $95 million 14 with local
contractors and suppliers, many of whom were nurtured by
the mine through skills transfer and capacity building.
“To date Kibali has contributed $3.7 billion14 to the Congolese
economy in the form of payments to contractors and
suppliers, infrastructure community and support, salaries and
royalties, taxes and permits. The success of our continuing
exploration program around the mine confirms the potential
for reserve growth from new open pittable resources and
extensions to the high-grade underground orebodies,
indicating that Kibali will materially benefit the DRC and its
people for years to come.”
BARRICK THIRD QUARTER 2021 8 PRESS RELEASE