Presenting the company’s third-quarter results, Bristow said a steady performance had paved the way for a stronger Q4, driven by access to higher grades at Nevada Gold Mines (NGM). Its exploration drive continues to build momentum
LONDON, November 3, 2022 — Barrick Gold Corporation
(NYSE:GOLD)(TSX:ABX) remains on track to achieve
its 2022 production guidance despite some short-term
operational challenges and rising input costs, president and
chief executive Mark Bristow said today.
Presenting the company’s third-quarter results, Bristow said
a steady performance had paved the way for a stronger Q4,
driven by access to higher grades at Nevada Gold Mines
(NGM). Its exploration drive continues to build momentum
and Barrick is set once again to grow its reserves net of
depletion this year.
Operating cash flow for the quarter was $758 million and
was supplemented by the sale of non-core royalty assets.
The robust balance sheet supported a $0.10 per share
base dividend plus a $0.05 per share performance dividend
for a total of $0.15 per share for the quarter. Under the $1
billion share buyback program, $322 million1 of shares have
been repurchased to date, or approximately 1% of Barrick’s
issued and outstanding shares at the time the program was
announced.
“Barrick’s core strategy is one of long-term value creation
and our focus remains firmly on this goal. We continue to
maintain a strong balance sheet and to develop our wealth
of organic growth projects. We also keep a sharp lookout
for M&A opportunities, but those that could pass our strict
investment filters are few and far between,” Bristow said.
Q32022
5 9 10
NEXT IN NEVADA TANZANIA
GROWTH
COMMITMENT
TO COPPER
ALL AMOUNTS EXPRESSED IN U.S. DOLLARS
TAILINGS
DISCLOSURE
UPDATED
4
DISCIPLINED STRATEGY EXECUTION SUPPORTS
SUSTAINED VALUE CREATION AT BARRICK
Q3 OPERATING CASH FLOW
$758 MILLION
Q3 NET EPS
Q3 ADJUSTED NET EPS3
$0.14
$0.13
Results
Release
CONTINUED ON PAGE 3
ON TRACK TO ACHIEVE
2022 PRODUCTION TARGETS
ON TRACK TO GROW RESERVES
NET OF DEPLETION BY YEAR END
Q3 NET CASH2
$145 MILLION
$0.15 PER SHARE
DIVIDEND FOR Q3
$322 MILLION
OF SHARES REPURCHASED UNDER
$1 BILLION BUYBACK PROGRAM4 IN 2022
Key Performance Indicators
Financial and Operating Highlights
Financial Results Q3 2022 Q2 2022 Q3 2021
Realized gold price5,6
($ per ounce) 1,722 1,861 1,771
Net earnings
($ millions) 241 488 347
Adjusted net earnings3
($ millions) 224 419 419
Net cash provided by operating
activities ($ millions) 758 924 1,050
Free cash flow7
($ millions) (34) 169 481
Net earnings per share
($) 0.14 0.27 0.20
Adjusted net earnings
per share3 ($) 0.13 0.24 0.24
Attributable capital
expenditures8,9 ($ millions) 609 587 456
Operating Results Q3 2022 Q2 2022 Q3 2021
Gold
Production6
(000s of ounces) 988 1,043 1,092
Cost of sales (Barrick's share)6,10
($ per ounce) 1,226 1,216 1,122
Total cash costs6,11
($ per ounce) 891 855 739
All-in sustaining costs6,11
($ per ounce) 1,269 1,212 1,034
Copper
Production6
(millions of pounds) 123 120 100
Cost of sales (Barrick's share)6,10
($ per pound) 2.30 2.11 2.57
C1 cash costs6,12
($ per pound) 1.86 1.70 1.85
All-in sustaining costs6,12
($ per pound) 3.13 2.87 2.60
Q3 2022 Results Presentation
Webinar and Conference Call
President and CEO Mark Bristow will host a live
presentation of the results today at 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 2022 presentation materials will be available on
Barrick’s website at www.barrick.com and the webinar will
remain on the website for later viewing.
Best Assets
▪ Steady Q3 performance with grade uplift in
Q4 to drive delivery of 2022 gold production
targets
▪ Strong production performance at Lumwana
and Jabal Sayid has copper trending at
midpoint of guidance
▪ Another milestone reached at Goldrush with
conclusion of draft EIS public comment period
▪ New exploration management team builds
momentum with strong results from a range of
exciting targets across portfolio
▪ On track to grow reserves net of depletion by
year end
Leader in Sustainability
▪ Renewed focus on Visible Felt Leadership
shows improvement in safety at NGM
▪ All NGM sites retained ISO 14001 and ISO
45001 accreditation during the quarter
▪ Zero Class 1 or high significance
environmental incidents13
▪ Progress against Global Industry Standard on
Tailings Management and against self-
assessment plans completed for all ‘very high’
and ‘extreme’ consequence classifications
▪ Pueblo Viejo new tailings storage facility
Environmental and Social Impact Assessment
(ESIA) completed to the Dominican
Government’s Terms of Reference
Delivering Value
▪ Operating cash flow of $758 million plus
further value capture from sale of royalty
portfolio
▪ Net earnings per share of $0.14 and adjusted
net earnings per share3 of $0.13 for the
quarter
▪ Net cash of $145 million2 results in a $0.15
per share dividend for Q3 2022, inclusive of
$0.05 per share performance dividend
▪ A further 9 million shares repurchased under
buyback program (~$141 million) in Q3 2022
bringing the total year-to-date to $322 million4
BARRICK THIRD QUARTER 2022 2 PRESS RELEASE
CONTINUED FROM PAGE 1
“Sustainability is the cornerstone of our business, as it has
been for the past 20 years. We have adopted a holistic and
integrated approach to this critical issue, and are not only
prioritizing the environment portion of ESG metrics. This is
more attuned to the ethical and developmental needs of
many of our host countries, and is already delivering results,”
Bristow said.
Highlights of the quarter include the completion of the public
comment phase of NGM’s Goldrush project and continuing
progress with the Pueblo Viejo expansion project, designed
to extend the life of the mine beyond 2040 at an annual
production rate in excess of 800,000 ounces of gold (100%
basis).14 The definitive agreements on the Reko Diq copper-
gold project in Pakistan have been finalized and the process
now moves onto its legalization and closing stage, with
potential production from 2027/2028.
Barrick continues to build its copper portfolio with strong
performances from Jabal Sayid in Saudi Arabia and
Lumwana in Zambia, where ongoing exploration is pointing to
the potential for a superpit which could extend the mine’s life
to 2060.
At NGM, the North Leeville target has reported a maiden
inferred resource of 700,000 ounces (100% basis as of
December 31, 2021) 18 and is set for further growth. Bristow
says Barrick is looking at other opportunities in Nevada and
elsewhere in North America. In Africa, key structures in the
Loulo district are demonstrating the potential for further
discoveries and in the Democratic Republic of Congo, Kibali’s
prolific KCD structure continues to deliver growth.
“Barrick is successfully executing its strategy to create the
world’s most valued gold and copper mining company
through the performance of its peerless asset portfolio and a
pipeline of high-quality organic growth prospects. This is
evident in its industry-leading and sustainable shareholder
returns, delivered in a disciplined dividend framework,”
Bristow said.
Q3 DIVIDEND OF $0.15 PER SHARE DECLARED,
LEADING TO RECORD ANNUAL RETURNS IN 2022
Barrick today announced the declaration of a dividend of $0.15 per share for the third quarter of 2022.
The dividend is consistent with the Company’s Performance
Dividend Policy announced at the start of the year. The Q3
2022 dividend will be paid on December 15, 2022 to
shareholders of record at the close of business on November
30, 2022.
In addition to the enhanced dividends declared so far in 2022,
Barrick has continued to repurchase shares under the share
buyback program that was announced in February of this
year. As of the end of Q3, Barrick has repurchased 18 million
shares1 under the program, or approximately 1% of Barrick’s
issued and outstanding shares at the time the program was
announced, for net cash of $322 million 1, including $141
million paid during Q3 2022.
Consequently, through the end of Q3 2022, $1.2 billion of
cash has been used for dividends and share buybacks during
the year. With the payment of the dividend announced today
to be made in Q4 2022, the return to shareholders in 2022 in
the form of dividends and share buybacks is expected to
exceed the record $1.4 billion of distributions made in 2021.
“The combination of the performance dividend policy and
share buyback program that were introduced earlier this year
has allowed us to provide significant benefits to our
shareholders,” says senior executive vice-president and chief
financial officer Graham Shuttleworth. “Anchored by our solid
operating performance and cash flows, we continue to
maintain a robust balance sheet whilst simultaneously
providing our shareholders with meaningful returns.”
BARRICK THIRD QUARTER 2022 3 PRESS RELEASE
BARRICK UPDATES TAILINGS DISCLOSURE
Barrick continues to progress towards compliance with the new Global Industry Standard on Tailings
Management (GISTM), in line with its commitment as one of the main supporters of this project.
Long a leader in the field of tailings management, Barrick has
maintained an internal standard that has been updated
regularly in line with regulatory requirements, industry
guidelines and best practices. This experience enabled it to
make a significant contribution to the development of the
GISTM. Its tailings storage facilities (TSFs) have been
subject to an independent third-party review for the past 20
years.
In the course of this year, Barrick has conducted external and
internal reviews of its tailings storage facilities against its
internal standard and the GISTM. Based on these reviews it
has taken a range of actions to further reduce the potential
risk they present. These include the installation of automated
data acquisition systems at numerous sites. Barrick’s TSF
disclosure has been updated and can be found on our
website at www.barrick.com/sustainability.
Isela Costantini has been appointed to Barrick’s
Board of Directors as an independent director.
Ms Costantini has over 25 years of experience in
international business and is currently the chief executive of
Grupo Financiero GST, a privately held asset management
company that ranks among Argentina’s leading financial
groups. Prior to that, she was president and CEO of
Argentina’s national airline, Aerolineas Argentina, as well as
president and general director, Argentina, Paraguay and
Uruguay, for General Motors.
Executive chairman John Thornton said Ms Costantini would
bring a valuable perspective to the board with her wealth of
experience in business, government and regulatory affairs in
Latin America.
BARRICK THIRD QUARTER 2022 4 PRESS RELEASE
A tailings storage facility in Nevada.
NGM: NOW FOR THE NEXT VALUE-CREATION PHASE
The successful merger of two different sets of assets, systems, people and practices into the fully
integrated Nevada Gold Mines (NGM) has been a classic case of the whole exceeding the sum of
its parts, says Mark Bristow.
Bristow, t he c hairman of N GM an d p resident and CEO of
majority o wner B arrick, s ays t he c ombination o f Bar rick’s
Nevada assets’ r eserves a nd g rades with Ne wmont’s
infrastructure has d elivered i ndustry-leading gr owth an d
performance. I n t he t hree year s sin ce th e est ablishment of
the j oint ven ture, i t h as pr oduced 1 0 million o unces of g old
(on a 100% basis) and added 14.7 million ounces of p roven
and pro bable r eserves ( on a 1 00% b asis befor e
depletion)15,17,18 as well a s 8.5 mi llion oun ces of i nferred
resources (on a 100% basis).16,17,18
Greatly improved knowledge of the orebodies supports robust
10-year mine plans and has increased the pre-merger life of
mine, and new opp ortunities for innovations and discoveries
that will support a 15-year plan have been identified.
“As far as t he f irst p hase o f NGM ’s de velopment is
concerned, I think we can safely say: Mission Accomplished,”
says Bristow.
“The foundational team did a gr eat job and NGM now needs
a new leadership team to oversee its next stage of long-term
value cr eation. At t he en d of th e pa st qu arter, P eter
Richardson o fficially s ucceeded G reg Walker a s e xecutive
managing dir ector and H enri G onin, p reviously ge neral
manager at Carlin, was appo inted head of operations. Other
senior a ppointments, inte rnal as well a s exter nal, ma ke up
the re st of a c orporate s tructure w hich is f it fo r N GM’s new
purpose.”
NGM se t o ut to b e a th oroughly N evadan b usiness, the
partner o f cho ice fo r t he sta te as w ell as i ts co mmunities.
Since S eptember 202 0, i t h as c ontributed m ore t han $ 5.5
million to Nevad an c auses t hrough it s f ive com munity
development com mittees (CDCs) . E ach of t hese cover s a
different re gion of N evada, in cluding the N ative Am erican
community. NG M’s s upport is focu sed o n e conomic
development, edu cation, en vironment, he alth an d cultu ral
heritage.
NGM’s t op p riority i s to cr eate a “ Zero-Harm” wor kplace. A
steady decline in t he Lost Time Injury Frequency Rate19 and
Total R ecordable I njury Fr equency Rate 20 in 20 22 d elivered
NGM’s best safety quarter of the year in the three months to
September.
B
ARRICK THIRD QUARTER 2022 5 PRESS RELEASE
BARRICK AND PAKISTAN REVIEW PROGRESS
ON REKO DIQ PROJECT
Mark Br istow sa ys t he proc ess of com pleting the f inal agreements a nd le gal ste ps tha t w ould
enable the development of the Reko Diq project is making steady progress.
Once t he t ransaction i s c ompleted, R eko D iq, o ne o f t he
largest undeveloped copper-gold deposits in the world, will be
owned 50% b y B arrick, 25% b y B alochistan p rovince a nd
25% by major Pakistani state-owned enterprises (SOEs).
He was speaking after a four-day visit to Pakistan in October
2022 during which he and the project team held discussions
with p rime ministe r Sh ehbaz Shar if a nd B alochistan chief
minister Abdul Q uddus B izenjo and t heir te ams, a s w ell a s
Barrick’s S OE par tners. W ith t he a pproval o f P akistan
president Dr A rif A lvi, t he n ecessary d ocuments f or t he
Presidential Ref erence wer e f iled o n O ctober 15, 2 022 w ith
the country’s supreme court, a significant process milestone.
During th e cour se of t he tr ip, the Barrick t eam a lso visi ted
Balochistan’s Chagai District, which hosts Reko Diq, to brief
local l eaders and com munity s takeholders o n t he p roject.
Reko Di q will b ring e normous ben efits to t he r egion in t he
form o f e mployment, s kills a nd econom ic d evelopment, as
well a s c ommunity i nitiatives f ocused on food secu rity,
environmental m anagement a nd access to hea lthcare,
education and potable water.
Bristow s ays B arrick i s setting up c ommunity deve lopment
committees (CDCs) to identify priority projects and supervise
their implementation.
“Barrick has been built on successful partnerships with our
host cou ntries, a nd t hese e ncompass the full r ange o f
stakeholders, fr om gover nments th rough sup pliers t o th e
communities around our mines. Our CDC model provides a
transparent and a ccountable m echanism for t ailoring
development pr ograms t o the n eeds of these c ommunities
with their full participation,” he says.
Once the current legal processes have been finalised, Barrick
will complete its update of the feasibility study, which currently
envisages an open-pit operation with a life of m ore than 40
years. It i s e nvisaged that t he p roject will b e b uilt in t wo
phases at an initial e stimated capital cost21 of a pproximately
$7 billion and is expected to go into production between 2027
and 2028.
While i n Pakista n, Br istow a nnounced that Bar rick w as
donating an a dditional $ 150,000 to t he B alochistan f lood
relief fun d, bring ing the com pany’s to tal c ontribution to
$300,000.
B
ARRICK THIRD QUARTER 2022 6 PRESS RELEASE
INCORPORATION OF NEW PORGERA LIMITED
ADVANCES MINE RESTART
The incorporation of New Porgera Limited (NPL) on September 22, following execution of the New
Porgera Shar eholders A greement by Ba rrick (N iugini) Li mited, K umul M ineral H oldings Lim ited
and Mineral Resources Enga, marked an important step towards the long-delayed restart of the
Porgera mine.
Once certain conditions are fulfilled, NPL intends to apply for
a new Special Mining Lease (SML) in coming weeks.
In Papua New Guinea for quarterly operational reviews, Mark
Bristow s aid that Ne w P orgera will wor k w ith t he S tate and
the Miner al R esources A uthority (M RA) t o e nsure t hat the
SML a pplication p rocess pr oceeded without delay a nd in
accordance w ith t he Mining A ct a nd the Porg era P roject
Commencement Agreement (PPCA).
“The application and early approval of a new SML is the goal
that all Porgera stakeholders should be striving for. The mine
has sat idle for far too long — more than two and a half years
— depriving landowners and the communities of Porgera of
employment and ot her esse ntial b enefits th at t he m ine
delivered successfully for 30 years,” said Bristow.
Together with B arrick’s e xecutives, Bristow t ravelled t o
Porgera t o k ick-off t he secur ity f orum alo ngside t he M ining
Minister S ir A no Pa la, Po rgera MP Ma so Kar ipe, SM L a nd
Lease for Mining Purpose landowners, community members,
women’s g roups a nd b usiness l eaders. Al so i n attend ance
was th e E nga Pr ovincial P olice Co mmander and
representatives of the Enga Provincial Government, Porgera
District and PNG Defence Force.
“We had a c onstructive k ick-off m eeting i n Por gera a nd
everyone agreed that law and order is crucial to the restart of
Porgera mine and the long-term future of the Porgera District.
The parties will continue to me et and collaborate on law and
order initiatives and their implementation. All landowners and
community l eaders h ave acknowled ged the ur gent ne ed for
leadership at g round level to c omplement t he wor k be ing
done by se curity fo rces. Ther e w as a call fr om t he
landowners for the signin g of a pe ace ag reement be tween
rival clan s in t he P orgera Valley a nd t he n eed fo r a
government endorsed police operation to address the current
lawlessness in Porgera,” said Bristow.
As a s ign o f Bar rick’s c ommitment t o r estart the oper ation,
the c ompany i s b uilding a dedicate d t eam, com prised o f a
majority o f P apua New G uineans, t o g et t he m ine u p a nd
running s o t hat t he p eople of Por gera c an f inally s ee t he
signs of Por gera’s revival that they h ave been waiting f or. To
date, B arrick an d Z ijin have fund ed $3 91 m illion sole ly for
care and maintenance.
B
ARRICK THIRD QUARTER 2022 7 PRESS RELEASE
Mining Minister Sir Ano Pala and Mark Bristow.
VELADERO CONTINUES TO EXPLORE AND STRENGTHEN
ITS PARTNERSHIP WITH THE COMMUNITY
But Warns That In-Country Conditions Could Adversely Affect Mining Industry Viability
The Veladero gold mine has reached its 17th anniversary since first gold in October 2005 and the
company remains committed to improving the asset, building on strong partnerships with the
local community, and exploring to increase its resources.
Mark Bristow said recent integrated work from the exploration
team in the Veladero district had identified four high interest
targets that would be tested with drilling campaigns that
started in October 2022.
Veladero will also launch four new Community Development
Committees (CDCs) in the provinces of Iglesia and Jáchal to
further develop an open partnership with local communities,
bringing the total CDCs to six, and increasing the frequency
of participatory environmental monitoring. The role of the
CDCs is to allocate the community investment budget to
projects prioritized by local stakeholders, with each
committee made up of a mix of local leaders and community
members.
“We call San Juan our home and since 2019 we have
significantly improved our relations with all stakeholders
based on our DNA of open and transparent communication.
I’m thrilled to see this commitment expand with the new
CDCs in our neighboring communities of Iglesia and Jáchal,”
Bristow said.
Another important initiative is to enhance environmental
participatory monitoring. The first of these took place at the
start of October when water quality samples were collected at
Veladero's Compliance Point by community members and
analyzed at a certified laboratory. Over the next six months,
monitoring will occur monthly and then quarterly, significantly
increasing participation from the current annual frequency.
In terms of value creation, the procurement spend with local
community suppliers reached US$22 million in the last 12
months. This has generated new opportunities for local
suppliers such as earthworks, construction, manufacturing of
grinding balls, glass cutting, hardware, mining road
maintenance and cargo transportation, among others. At the
same time, the company has developed an incubation
program for non-mining related small businesses, which has
produced about 60 initiatives in the last three years.
“We are exploring in the San Juan province and across the
country, and at the same time, we have raised concerns
about the mining industry's viability. At Veladero, we have
observed how the current financial situation in Argentina, with
currency restrictions, inflation, and taxation, combines with
the global financial crisis to create risks for the mine plan. As
partners, we urgently need to work together for a sustainable
long-term future,” Bristow said.
BARRICK THIRD QUARTER 2022 8 PRESS RELEASE