Barrick Gold Corporation’s gold production for 2019 of 5,465,000
ounces was at the top end of its guidance range while copper
production of 432 million pounds was above the guidance range, the
company reported today.
Announcing its results for the fourth quarter
and the year, the company reported net earnings per share of $2.26
for the year and noted that its adjusted net earnings per share1
were up 46% year on year while debt net of cash was halved from
2018 to $2.2 billion. The quarterly dividend was increased by
40% from Q3, to $0.07 cents per share, which was itself a 25%
increase from Q2.
In a presentation here, president and chief
executive Mark Bristow said the successful formation of the Nevada
Gold Mines joint venture during the year had resulted in the North
American operations delivering at the midpoint of its production
and cost guidance ranges. There were also strong performances
from Barrick’s Latin American, Asia Pacific and Africa Middle East
operations.
“In the year since the completion of Barrick’s
merger with Randgold Resources, we have transformed the new company
while creating the world’s largest gold mining complex in Nevada in
a transaction that had been unsuccessfully pursued for two
decades. The Acacia minorities’ buy-out enabled us to settle
that company’s long-running dispute with the Tanzanian government
and to integrate its assets into our operations. We’ve also
started selling off non-core assets with the disposal of our stakes
in the Kalgoorlie gold mine in Australia and the agreed sale of the
Massawa project in Senegal,” Bristow said.
2019 Q4 Highlights
- Full year gold production at upper end and copper production
above guidance ranges
- Debt net of cash at $2.2 billion, down 47% from 2018
- Proven and probable reserves increase year-on-year at higher
grade, net of depletion
- Another quarterly dividend increase, up 40% from Q3 to $0.07
per share
Financial and
Operating Highlights(Unaudited)
Financial Results |
Q4 2019 |
Q3 2019 |
2019 |
2018 |
|
Realized gold price3,4 ($ per ounce) |
1,483 |
1,476 |
1,396 |
1,270 |
|
Net earnings (loss) ($ millions) |
1,387 |
2,277 |
3,969 |
(1,545 |
) |
Adjusted net earnings1 ($ millions) |
300 |
264 |
902 |
409 |
|
Net cash provided by operating activities($ millions) |
875 |
1,004 |
2,833 |
1,765 |
|
Free cash flow5 ($ millions) |
429 |
502 |
1,132 |
365 |
|
Net earnings (loss) per share ($) |
0.78 |
1.30 |
2.26 |
(1.32 |
) |
Adjusted net earnings per share1 ($) |
0.17 |
0.15 |
0.51 |
0.35 |
|
Total attributable
capital expenditures6 ($ millions) |
393 |
397 |
1,512 |
1,363 |
|
Operating Results |
Q4 2019 |
Q3 2019 |
2019 |
2018 |
|
Gold |
Production (000s of ounces) |
1,439 |
1,306 |
5,465 |
4,527 |
|
Cost of sales7 (Barrick's share) ($ per ounce) |
1,046 |
1,065 |
1,005 |
892 |
|
Total cash costs8 ($ per ounce) |
692 |
710 |
671 |
588 |
|
All-in sustaining costs8 ($ per ounce) |
923 |
984 |
894 |
806 |
|
Copper |
|
|
|
|
Production (millions of pounds) |
117 |
112 |
432 |
383 |
|
Cost of sales7 (Barrick's share) ($ per pound) |
2.26 |
2.00 |
2.14 |
2.40 |
|
C1 cash costs9 ($ per pound) |
1.90 |
1.62 |
1.69 |
1.97 |
|
All-in sustaining
costs9 ($ per pound) |
2.82 |
2.58 |
2.52 |
2.82 |
|
Key
PerformanceIndicators
- Full year gold production at upper end and copper production
above guidance ranges
- Gold costs per ounce down quarter on quarter
- Debt net of cash at $2.2 billion, down 47% from 2018
- Adjusted net earnings per share1 up 46% year on year
- Increased efficiency drives significant year-over-year
improvement in copper production and costs
- Successful formation and integration of Nevada Gold Mines JV
results in North American operations delivering at midpoint of its
production and cost guidance ranges
- Pueblo Viejo expansion evaluation and revised flowsheet
enhances project
- Strong performances across the board at Latin American, Asia
Pacific and Africa Middle East operations
- Proven and probable reserves increase net of depletion
year-on-year at higher grade
- Tanzanian disputes resolved with signing of framework
agreement
- Significant progress made in resolving tax related issues in
Mali to pave the way for further investment in the country
- Non-core asset disposals reinforce strategy of concentrated
Tier One2 asset portfolio
- Exceeded water recycling target of 70%; recycled >70% of
water used at our sites
- Another quarterly dividend increase, up 40% from Q3 to $0.07
per share
“We started the year with five Tier One2 gold mines and ended it
with six, thanks to the Nevada deal. We’ve also succeeded in
replenishing our reserves and resources, net of depletion, at a
higher grade.”
Bristow said the pace of these achievements was
attributable to a flattened management structure and the transfer
of responsibilities from the corporate office to the
operations.
“We now have agile multi-disciplinary teams
capable not only of executing complex, industry-leading corporate
transactions but also of running our operations efficiently while
pursuing new growth opportunities,” he said.
“The significant reduction in Barrick’s debt and
the growth in its liquidity means that the company is now capable
of managing its business and taking advantage of new opportunities
independent of the vagaries of the capital markets. Our
organic growth potential alone will support the 10-year production
plan we’ll be sharing with the market in March and our exploration
teams are stocking our future pipeline.”
Bristow noted that there was a strong focus on
automation and clean energy across the group, while retaining and
building on the operations’ social license remained a
priority. Barrick’s commitment to sustainability is evidenced
by the fact that more than 80% of the water used by our operations
was recycled or reused.
“We believe that our ability to operate
successfully depends on our ability to deliver long-term value to
shareholders and other stakeholders, including the host countries,
and on scrupulously managing our impact on the environment,” he
said.
Conference Call and Webcast
Please join us for a conference call and webcast
today at 11:00 ET/16:00 GMT to discuss the results.
US and Canada, 1-800-319-4610UK, 0808 101
2791International, +1 416 915-3239Webcast
The webcast will remain on the website for later
viewing, and the conference call will be available for replay by
telephone at 1 855 669 9658 (US and Canada) and +1 604 674 8052
(international), access code 3969.
BARRICK INCREASES DIVIDEND 40% FOR Q4
2019
Barrick Gold Corporation today announced that
its Board of Directors has declared a dividend for the fourth
quarter of 2019 of $0.07 per share, a 40% increase on the previous
quarter’s dividend, payable on March 16, 2020 to shareholders of
record at the close of business on February 28, 2020.10
Senior executive vice-president and chief
financial officer Graham Shuttleworth said this was the third
dividend increase this year and reflected the excellent performance
for the year and Barrick’s profitability and financial
strength.
“The board believes the dividend increase is
justified by the significant reduction in net debt and strong
balance sheet, together with the growth in free cash flow supported
by a robust 5-year plan which we have shared with the market,” said
Shuttleworth.
“At the time the Barrick-Randgold merger was
announced, the Q3 2018 dividend was 3 cents per share, which was
subsequently increased to 4 cents for Q1 2019 after the merger,
then increased to 5 cents for Q3 2019 on the back of our strong
operating performance, and now to 7 cents for Q4. This is
consistent with the company’s stated financial and operating
objectives and in line with the commitment to shareholder returns
made when the merger with Randgold was announced on September 24,
2018.”
SUSTAINABILITY: AT THE
HEARTOF BARRICK’S BUSINESS STRATEGY
Long before the current rise of investor
interest in ESG (environmental, sustainability and governance)
issues, Barrick and Randgold recognized that their ability to
operate successfully was dependent on delivering long-term value to
all stakeholders and to minimize their impact on the
environment.
“At Barrick, ESG is not some box-ticking
compliance function but a core strategy,” says president and chief
executive Mark Bristow. “It starts at the top and permeates
through the entire organization, and we believe that if it is
managed well, it will drive our ability to deliver long-term
profitability. It’s not only a social imperative - it’s a
commercial one.”
Grant Beringer, Barrick’s group sustainability
executive, says every site is expected to minimize water and energy
use, manage waste and land responsibly, and put employee safety
first. The operations promote the social and economic
development of their communities, and work constantly to form and
maintain mutually beneficial partnerships with their stakeholders.
Putting ESG into practice requires accountability to these
stakeholders, which is why Barrick reports comprehensively and
transparently on its sustainability performance and impacts.
“In 2019, there were no fatalities or
high-impact environmental incidents at any of our sites. We
recycled more than 70% of the water we used and we made significant
progress in curbing our carbon emissions, phasing in solar power at
Loulo-Gounkoto, converting the power plant at Pueblo Viejo to
natural gas and linking Veladero with grid power. We also
developed and implemented biodiversity action plans at our priority
sites and we’re on track to roll these out across the group by
2021. Our investment in community development projects
exceeded $23 million for the year,” he said.
COMMITMENT TO EXCELLENCE IN
GEOLOGYSECURES SUSTAINABILITY
Barrick’s intensified focus on
geocentric principles enables its geologists to increase existing
reserves as well as to find their next major discovery, says Rob
Krcmarov, executive vice-president, exploration and
growth.
“Understanding the orebodies is the key to
defining the revenue value of an asset as well as high-quality mine
planning. It ensures that every bit of that value can be
extracted safely and that the process maximizes the recovery rate,”
he says.
“Loulo-Gounkoto and Cortez-Goldrush are prime
examples of how orebody knowledge and quality geological work have
delivered world-class discoveries, and there is an abundance of
similar opportunities across our portfolio.”
Nevada Gold Mines’ holdings encompass more than
one million hectares across some of the best-endowed gold trends in
North America, and early versions of unified and more sophisticated
geological models have already identified new areas of interest
there. At Fourmile, the inferred resource was increased by
more than 170%11 in 2019 thanks to an improved understanding of the
mineralization controls, which also delivered a new high-grade
discovery more than a kilometer from the main orebody.
In Latin America, the number of drill targets in
the resource triangle had increased threefold by the end of the
year. In the highly prospective and under-explored El Indio
belt, advances in exploration technology and improved ore deposit
models are being employed to probe for concealed gold deposits.
At Porgera in Papua New Guinea, a new drill
hole, hundreds of meters beyond the pit, has validated the
exploration team’s prediction that the mineralized system is far
larger than currently defined.
Africa remains a target-rich environment, with
the Faraba complex in Mali and Bambadji in Senegal looking
particularly promising. Both Loulo-Gounkoto in Mali and
Kibali in the Democratic Republic of Congo continue to replace
their reserves and develop their resource growth opportunities,
while at the recently consolidated North Mara mine in Tanzania, a
new orebody model has identified an abundant upside.
“All our Tier One2 mines have in excess of 10
years’ worth of reserves at a $1,200/oz gold price. We expect
that many of these will yield extensions and additional discoveries
and will be producing for years to come. It is significant in
this regard to note that Barrick replaced its reserves net of
depletion and at a higher grade in 2019,” says Krcmarov.
BARRICK GROWS AND IMPROVES RESERVE AND
RESOURCE BASE IN A YEAR OF CHANGE
Barrick’s annual resource and reserve
declaration, published today as part of its fourth quarter results,
shows an attributable gold mineral reserve increase of
14.5% in ounces at 7.7% higher grade after depletion from mining,
reflecting a busy year which included the incorporation of Randgold
Resources, the formation of the Nevada Gold Mines joint venture
with Newmont and the disposal of KCGM. Attributable reserves
now stand at 1,300 million tonnes at 1.68 g/t for 71 million ounces
of gold.12 This has been achieved through reserve additions
greater than mining depletion at a number of our principal assets
including Kibali, Loulo-Gounkoto, Veladero, Porgera, Goldstrike
underground mine, Leeville/Portal underground mines, Mega Pit,
Turquoise Ridge underground mine, and Phoenix. This was
achieved through the refocus on geology as a core discipline within
the business and cost improvements at the Nevada joint venture,
which allowed for the lowering of cut-off grades and the increase
in reserves.
Global attributable mineral resources also
increased, net of depletion with significant inferred mineral
resource additions at Robertson and Fourmile in the Cortez district
of Nevada, moving these new projects up the resource
triangle. Goldrush, Robertson, and Pueblo Viejo contain
significant indicated and inferred mineral resources not currently
in reserves and are three growth projects from which further
reserve growth can be expected in the near future upon completion
of feasibility studies. Total attributable
measured and indicated mineral resources, now reported inclusive of
reserves and at a $1,500/oz gold price stand at 3,400 million
tonnes at 1.55 g/t for 170 million ounces, with a further 940
million tonnes at 1.30 g/t for 39 million ounces in the inferred
category, highlight the potential for growth in a higher gold price
environment.12 All underground mineral resources are now reported
within $1,500/oz stope optimizer shells and as such have shown
significant growth in ounces albeit at lower grade, but which
better reflects the opportunity at higher gold prices.
The Group gold mineral reserve reconciliation is
supplied below and explains the changes that occurred during the
year. Acquisition and disposal includes the net change to
Barrick’s reserves from the Randgold merger, the formation of the
Nevada joint venture, the Acacia minorities’ acquisition, and
the disposition of KCGM. Total depletion includes depletion from
mining which was offset by gains due to extensions to mineral
reserves through drilling and cut-off grade changes. Losses
incurred were comprised primarily of the reclassification of
Lagunas Norte to mineral resources, plus the removal of the Phase
Six pit pushback at Hemlo.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f637b21c-ee5c-4618-8bd0-3eab46376f51
All assets are optimized on the full value of
the deposit and as such copper and silver are reported as dedicated
mineral resources and reserves for all assets where copper or
silver is produced and sold as a primary product or by-product.
Total attributable copper mineral reserves now
stand at 1,600 million tonnes at 0.38% for 13 billion pounds of
contained copper.12 The growth of copper mineral reserves was
primarily driven by Lumwana due to the reclassification and
remodeling of the Chimiwungo pit and cost improvements, with a
small contribution from Zaldivar.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/de560e1e-930a-46d2-99cc-894b77c90ca8
Total attributable silver mineral reserves are
900 million tonnes at 5.03 g/t for 150 million ounces of contained
silver.12
TAKING TECH TO THE NEXT
LEVEL
Trials and projects designed to make
Barrick’s operations more efficient as well as safer are driving
the increased use of technology and automation across the
group.
Centres of excellence have been established to
advance autonomous applications for both surface and underground
operations. This means that rather than having a range of
operations trialing different systems, these will be proven on both
technological and operating cost grounds at the centres.
Should they pass these filters, they will be rolled out across the
group.
In Nevada, which is the centre of surface
automation and technology development for Barrick, the first stage
of a project designed to enable the retrofitting of an autonomous
system for Carlin’s haulage fleet has been completed
successfully. A number of trucks have already been
retrofitted and work is now under way on increasing their speed
from 15km/h to 35km/h, and installing portable locators that will
allow manned and unmanned operations in the same zone.
Following the creation of the Nevada Gold Mines JV, the autonomous
drilling trials Barrick and Newmont had been running with different
systems have been consolidated and will be tested at Phoenix and
Lone Tree this year.
Kibali remains at the leading edge of
underground automation in the global gold mining industry.
After the implementation of the Sandvik Automine Multifleet system,
which allows multiple autonomous machines to operate on the same
haulage level; a trial to utilize this technology on the production
levels has been completed successfully. Using the same operations
centre as the haulage system, one operator can now control up to
three machines acting semi-autonomously in three different
zones.
Also at Kibali, the installation of the Newtrax
system, which provides real-time visibility of the underground
operations, including personnel and equipment tracking and
proximity warning, machine health and productivity as well as
automated control of ventilation fans, was completed and will be
fully commissioned in Q1 of 2020.
With the rapid development of electric vehicles,
Barrick has introduced a battery-powered development drill at Hemlo
in a first step towards establishing the potential of this new
technology. Further trials of battery equipment are planned,
predominantly at Turquoise Ridge’s underground operation, where it
offers the potential of increasing production without having to
make significant changes to the ventilation system.
PEOPLE MAKE A BUSINESS
To build a modern mining business at the
top of its field, you need best-in-class people to run its
portfolio of best-in-class assets, says president and chief
executive Mark Bristow.
“That is why we are promoting a culture of
inclusion across the organization and at every level. We’ve
flattened the corporate structure to create a larger ownership
base, we’re sharing our strategic vision with all employees and the
roll-out of team effectiveness programs is reinforcing their
understanding of and commitment to our high-performance
ethos. I want everyone to come to work in the morning
inspired by the desire to help make Barrick the world’s safest,
most efficient, and most highly valued company,” he says.
Attracting, training and retaining the right
people is obviously the basis of this employee-oriented
philosophy. Barrick offers executive and management
development programs at leading universities to foster its next
generation of world-class leaders. It also invests in and
mentors young professionals through rotational training and
internship programs for college graduates.
“Our successful recruitment drive is filling our
pipeline of future talent with people who come from a broad range
of backgrounds but who all have the desire and the ability to buy
into the Barrick DNA,” Bristow says.
KEEPING OUR COUNSEL
Rich Haddock has decided to defer his retirement
and returns as Barrick’s general counsel in order, he says, to
participate in the exciting new developments at the company.
He joined Barrick in 1997 and has been involved in some of the most
important steps in its growth.
Poupak Bahamin has joined Barrick as deputy
general counsel from Norton Rose Fulbright, where she was a partner
and co-led its US mining practice. She is the current chair
of the World Association of Mining Lawyers.
EXPANSION PROJECT WILL UNLOCK VALUE,
EXTEND LIFE AT PUEBLO VIEJO
Studies continue to support a plant
expansion project which will confirm Pueblo Viejo’s status as one
of the world’s greatest gold mines by extending its life beyond
2040 at a production rate of some 800,000 ounces per
year.13
Barrick president and chief executive Mark
Bristow says a substantial portion of the mine’s mineral resources
would have been sterilized by the limitation of its tailings
storage facility. Alongside the plant expansion project,
which will significantly boost throughput, the planned increase in
the mine’s tailings management capacity has the potential to
convert roughly 11 million ounces of indicated resources to
reserves on a 100% basis.
“A study completed last quarter indicated that
the throughput increase can be achieved without additional
autoclaves. An oxidation upgrade will provide the required
capacity at a lower capital and operating cost than the options
previously considered,” explained John Steele, Barrick’s
Metallurgy, Engineering and Capital Projects Executive. Pueblo
Viejo currently has 9.5 million ounces of gold in reserves. Total
measured and indicated mineral resources contain 25 million ounces
and thus offer a significant opportunity to expand reserves.14
The mine is an important component of the
Dominican Republic’s economy, contributing more than 20% of the
country’s annual corporate tax revenue. It operates in close
partnership with the government and the community, and recently
committed its support for the development of a local cacao-based
agribusiness.
BARRICK BACK IN BUSINESS IN
TANZANIA
Barrick says it has made significant
progress in reshaping the Tanzanian operations it consolidated
through the take-over of Acacia Mining in September last year in
order to create a sustainable business capable of long-term value
creation for its stakeholders.
At a signing ceremony with the President of the
United Republic of Tanzania, Dr John Pombe Magufuli, to formalize
the establishment of a joint venture between Barrick and the
government, Bristow said the joint venture, which will give the
government full visibility of and participation in operating
decisions made for and by the North Mara, Bulyanhulu and Buzwagi
mines, was a pioneering move which would take Barrick’s policy of
partnership with its host countries to a new level.
The agreement also ratifies the creation of
Twiga Minerals Corporation, the management company jointly owned by
the government and Barrick, that will oversee the management of
Barrick’s local operations, which are now owned 84% by Barrick and
16% by the government. The deal provides for a 50/50 sharing
in the economic benefits generated by the mining operations after
the recoupment of capital investments.
Following the ceremony, there are a number of
matters which Barrick and the government will work together to
implement. In particular, Barrick will partner with the University
of Dar es Salaam and commit up to $10 million in funding over a
10-year period for training and skills development in the mining
industry, and will also commit up to $40 million to upgrade the
road between Bulyanhulu and Mwanza as well as constructing a
housing compound and related infrastructure.
“Since taking over the operatorship, we have
been engaging with local communities to restore the mines’ social
license to operate and we are cooperating closely with the
authorities to address the environmental issues at North Mara. In
addition, we are working on a local supplier strategy as well as a
community development plan to create sustainable economic
opportunities for the people around our mines”, Bristow said.
Bristow said there was a strong focus on
rationalizing and optimizing mine plans. Following the
successful transition to owner mining at North Mara, this has
already delivered a reduction in costs and an increase in free cash
flow. A similar result is expected at Bulyanhulu, where an
integrated study aimed at optimizing the complete orebody should
kick-start the resumption of operations there later this year.
“Reflecting our confidence in the potential of
this highly prospective gold region, we have budgeted $50 million
for brown and greenfields exploration here in 2020 alone and are
looking at various opportunities to sustain and expand our
operations,” Bristow said.
In line with Barrick’s commitment to employing
and advancing locals at its mines, Tanzanian nationals are being
recruited and trained to replace expatriate employees as has been
done successfully at Barrick’s other African operations. In
addition, Acacia’s offices outside Tanzania have been closed, and
company records and day-to-day decision-making and accountability
have been moved back to the operations in Tanzania.
PIONEERING PARTNERSHIP WITH TANZANIA OFF
TOA STRONG START
Twiga Minerals Corporation, the recently
formed joint venture between the Tanzanian government and Barrick,
has had its first two board meetings, and Willem Jacobs, Barrick’s
chief operating officer for Africa and the Middle East, says the
positive energy in the room was palpable.
“Twiga has made a strong start, we’re getting
the Tanzanian operations back on track and we’re building a strong
foundation for sustainable profitability,” says Jacobs. “We
recognize that there’s still a long way to go, considering that we
also have to repair the damage these assets suffered during the
previous operator’s long stand-off with the government,” he
said.
“There are many examples of exploitation by the
extractive industries, as well as their hosts. With their
short-term focus, these enterprises are incapable of delivering
sustainable profitability. Similarly, those governments which
flirt with resource nationalization fail to see that the engine of
profitability drives their economies. With its ‘Win Together,
Lose Together’ creed, Twiga is a true partnership which will create
long-term benefits and share them equally.”
KIBALI SOARS PAST
GUIDANCETO POST ANOTHER RECORD YEAR
Barrick Gold Corporation’s Kibali mine beat its
2019 production guidance of 750,000 ounces of gold by a substantial
margin, delivering 814,027 ounces in another record year.15
Barrick president and chief executive Mark
Bristow told a media briefing here that Kibali’s continuing stellar
performance was a demonstration of how a modern, Tier One2 gold
mine could be developed and operated successfully in what is one of
the world’s most remote and infrastructurally under-endowed
regions. He also noted that in line with Barrick’s policy of
employing, training and advancing locals, the mine was managed by a
majority Congolese team, supported by a corps of majority Congolese
supervisors and personnel.
Already one of the world’s most highly automated
underground gold mines, Kibali continues its technological advance
with the introduction of truck and drill training simulators and
the integration of systems for personnel safety tracking and
ventilation demand control. The simulators will also be used to
train operators from Barrick’s Tanzanian mines.
“The completion of the Kalimva-Ikamva
prefeasibility study has delivered another viable opencast project
which will help balance Kibali’s opencast/underground ore ratio and
enhance the flexibility of the mine plan. Down-plunge extension
drilling at Gorumbwa has highlighted future underground potential
and ongoing conversion drilling at KCD is delivering reserve
replenishment. All in all, Kibali is well on track not only to meet
its 10-year production targets but to extend them beyond this
horizon,” Bristow said.
“We’re maintaining a strong focus on energy
efficiency through the development of our grid stabilizer project,
scheduled for commissioning in the second quarter of 2020. This
uses new battery technology to offset the need for running diesel
generators as a spinning reserve and ensures we maximize the use of
renewable hydro power. The installation of three new elution diesel
heaters will also help improve efficiencies and control power
costs. It’s worth noting that our clean energy strategy not only
achieves cost and efficiency benefits but also once again reduces
Kibali’s environmental footprint.”
Bristow said despite the pace of production and
the size and complexity of the mine, Kibali was maintaining its
solid safety and environmental records, certified by ISO 45001 and
ISO 14001 accreditations. It also remained committed to community
upliftment and local economic development. In 2019, it spent $158
million with Congolese contractors and suppliers and in December,
it started work on a trial section for a new concrete road between
Durba and the Watsa bridge.
LOULO-GOUNKOTO COMMITS TO NEW DECADE OF
DELIVERY AND INVESTMENT
Barrick Gold Corporation’s Loulo-Gounkoto
complex has again demonstrated its mettle, exceeding its 2019
guidance with production of 714,802 ounces of gold.16
Barrick’s president and chief executive Mark
Bristow told a briefing for local media that the complex continued
to perform consistently to plan and was still managing to replace
depleted reserves through successful brownfields exploration and
resource conversion.
“With the development of the complex’s third
underground mine scheduled to start in the fourth quarter of this
year, and an intensive exploration program in the Kenieba region,
Loulo-Gounkoto has significant growth potential and is well-placed
to meet all the targets of its 10-year plan,” he said.
In line with Barrick’s clean energy strategy,
Loulo-Gounkoto is pioneering the group’s first solar power project.
This is being developed in four phases, with the first scheduled
for commissioning at the end of the first quarter and the last in
the fourth quarter of this year. It will add 20MW to the complex’s
grid, reduce the unit cost of its power and cut carbon emissions by
some 40,000 tonnes per year. Bristow said it would serve as a model
for the introduction of solar power elsewhere across Barrick,
particularly at its North American operations.
Also being implemented at present is the Ramjack
Newtrax project, which is setting the foundation for the automation
and monitoring of the complex’s underground mines through a fiber
network.
Despite the high activity level, the complex
maintained its solid safety record with Lost Time Injuries (LTIs)
at Loulo decreasing from four to two year-on-year, and Gounkoto
recording its second successive LTI-free year.
Bristow said Loulo-Gounkoto continued to invest
in community health, education, and economic development programs.
One of these is the agricultural complex established and funded to
the tune of $2.2 million.
This has produced its first crop of 48 young
farmers who have been installed on 30 new farms and provided not
only with the necessary technical and entrepreneurial skills, but
with the credit to apply these effectively.
During 2019, Loulo-Gounkoto spent $313 million
with local contractors and suppliers and continued developing local
businesses by creating a $500,000 provision for an incubation
project designed to incorporate local contractors into the mining
industry.
“Over the past 23 years, Barrick and its legacy
company Randgold Resources have contributed $7.2 billion to the
Malian economy in the form of taxes, royalties, salaries and
payments to local suppliers. Over the same period, our mines in
Mali paid $2.7 billion in dividends, taxes and royalties to the
state - almost three times the $1 billion dividend received by
Barrick,” Bristow said.
“It is a cardinal principle of Barrick that our
host countries and communities should share equitably in the
benefits created by our operations. Some, such as skills
development and employment creation, cannot be measured, but as
these figures demonstrate, the quantifiable value we deliver to
Mali is very substantial,” Bristow said.
“This is also the product of a long and
constructive partnership between the government of Mali and
ourselves, and in this regard it is gratifying to report that we
have made significant progress towards settling the dispute between
us over tax and related issues which allows us to look forward to
continuing to grow our partnership with the Mali government and its
people.”
Appendix 12020 Operating and Capital
Expenditure Guidance
GOLD PRODUCTION AND COSTS |
|
2020 forecast attributable production (000s ozs) |
2020 forecast cost of sales7 ($/oz) |
2020 forecast total cash costs8 ($/oz) |
2020 forecast all-in sustaining costs8 ($/oz) |
Carlin (61.5%)17,18 |
1,000 - 1,050 |
920 - 970 |
760 - 810 |
1,000 - 1,050 |
Cortez (61.5%)17 |
450 - 480 |
980 - 1,030 |
640 - 690 |
910 - 960 |
Turquoise Ridge(61.5%)17 |
430 - 460 |
900 - 950 |
540 - 590 |
690 - 740 |
Phoenix (61.5%)17 |
100 - 120 |
1,850 - 1,900 |
700 - 750 |
920 - 970 |
Long Canyon (61.5%)17 |
130 - 150 |
910 - 960 |
240 - 290 |
450 - 500 |
Nevada Gold Mines(61.5%) |
2,100 - 2,250 |
970 - 1,020 |
660 - 710 |
880 - 930 |
Hemlo |
200 - 220 |
960 - 1,010 |
800 - 850 |
1,200 - 1,250 |
North America |
2,300 - 2,450 |
970 - 1,020 |
660 - 710 |
900 - 950 |
|
|
|
|
|
Pueblo Viejo (60%) |
530 - 580 |
840 - 890 |
520 - 570 |
720 - 770 |
Veladero (50%) |
240 - 270 |
1,220 - 1,270 |
670 - 720 |
1,250 - 1,300 |
Porgera (47.5%) |
240 - 270 |
890 - 940 |
770 - 820 |
960 - 1,010 |
Latin America & Asia Pacific |
1,000 - 1,100 |
930 - 980 |
610 - 660 |
890 - 940 |
|
|
|
|
|
Loulo-Gounkoto (80%) |
500 - 540 |
1,050 - 1,100 |
620 - 670 |
970 - 1,020 |
Kibali (45%) |
340 - 370 |
1,030 - 1,080 |
600 - 650 |
790 - 840 |
North Mara19 |
240 - 270 |
750 - 800 |
570 - 620 |
830 - 880 |
Tongon (89.7%) |
240 - 260 |
1,390 - 1,440 |
680 - 730 |
740 - 790 |
Bulyanhulu19 |
30 - 50 |
1,210 - 1,260 |
790 - 840 |
1,110 - 1,160 |
Buzwagi 19 |
80 - 100 |
850 - 900 |
820 - 870 |
850 - 900 |
Africa & Middle East |
1,450 - 1,600 |
1,040 - 1,090 |
640 - 690 |
870 - 920 |
|
|
|
|
|
Total Attributable to Barrick20,21,22,23 |
4,800 - 5,200 |
980 - 1,030 |
650 - 700 |
920 - 970 |
|
|
|
|
|
COPPER
PRODUCTION AND COSTS |
|
2020 forecast attributable production (M lbs) |
2020 forecast cost of sales7 ($/lb) |
2020 forecast C1 cash costs9 ($/lb) |
2020 forecast all-in sustaining costs9 ($/lb) |
Lumwana |
250 - 280 |
2.20 - 2.40 |
1.50 - 1.70 |
2.30 - 2.60 |
Zaldívar (50%) |
120 - 135 |
2.40 - 2.70 |
1.65 - 1.85 |
2.30 - 2.60 |
Jabal Sayid (50%) |
60 - 70 |
1.75 - 2.00 |
1.40 - 1.60 |
1.50 - 1.70 |
Total
Copper22 |
440 - 500 |
2.10 - 2.40 |
1.50 - 1.80 |
2.20 - 2.50 |
CAPITAL EXPENDITURES |
($ millions) |
Attributable minesite sustaining |
|
|
|
1,300 - 1,500 |
Attributable project |
|
|
|
300 - 400 |
Total attributable capital expenditures 24 |
|
|
|
1,600 - 1,900 |
Appendix 2Production and Cost
Summary
Production and Cost Summary -
Gold
(Unaudited) |
For the three months ended |
For the years
ended |
|
12/31/2019 |
9/30/2019 |
% Change |
12/31/2019 |
12/31/2018 |
% Change |
Nevada Gold Mines LLC (61.5%)a |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
585 |
|
535 |
|
9 |
% |
2,218 |
|
2,368 |
|
(6 |
)% |
Gold produced (000s oz 100% basis) |
951 |
|
870 |
|
9 |
% |
2,967 |
|
2,457 |
|
21 |
% |
Cost of sales ($/oz) |
1,038 |
|
1,027 |
|
1 |
% |
924 |
|
814 |
|
13 |
% |
Total cash costs ($/oz)b |
711 |
|
693 |
|
3 |
% |
634 |
|
526 |
|
20 |
% |
All-in sustaining costs ($/oz)b |
944 |
|
946 |
|
0 |
% |
828 |
|
664 |
|
25 |
% |
Cortez (61.5%)c |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
133 |
|
126 |
|
6 |
% |
801 |
|
1,265 |
|
(37 |
)% |
Gold produced (000s oz 100% basis) |
216 |
|
205 |
|
6 |
% |
963 |
|
1,265 |
|
(24 |
)% |
Cost of sales ($/oz) |
945 |
|
829 |
|
14 |
% |
762 |
|
659 |
|
16 |
% |
Total cash costs ($/oz)b |
681 |
|
570 |
|
19 |
% |
515 |
|
351 |
|
47 |
% |
All-in sustaining costs ($/oz)b |
1,012 |
|
772 |
|
31 |
% |
651 |
|
430 |
|
51 |
% |
Carlin (61.5%)d |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
276 |
|
278 |
|
(1 |
)% |
968 |
|
835 |
|
16 |
% |
Gold produced (000s oz 100% basis) |
449 |
|
452 |
|
(1 |
)% |
1,315 |
|
835 |
|
57 |
% |
Cost of sales ($/oz) |
975 |
|
1,007 |
|
(3 |
)% |
1,004 |
|
1,054 |
|
(5 |
)% |
Total cash costs ($/oz)b |
766 |
|
775 |
|
(1 |
)% |
746 |
|
740 |
|
1 |
% |
All-in sustaining costs ($/oz)b |
965 |
|
1,014 |
|
(5 |
)% |
984 |
|
983 |
|
0 |
% |
Turquoise Ridge (61.5%)e |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
111 |
|
82 |
|
35 |
% |
335 |
|
268 |
|
25 |
% |
Gold produced (000s oz 100% basis) |
181 |
|
133 |
|
35 |
% |
504 |
|
357 |
|
41 |
% |
Cost of sales ($/oz) |
971 |
|
1,077 |
|
(10 |
)% |
846 |
|
783 |
|
8 |
% |
Total cash costs ($/oz)b |
625 |
|
622 |
|
0 |
% |
585 |
|
678 |
|
(14 |
)% |
All-in sustaining costs ($/oz)b |
800 |
|
840 |
|
(5 |
)% |
732 |
|
756 |
|
(3 |
)% |
Phoenix (61.5%)f |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
31 |
|
25 |
|
24 |
% |
56 |
|
|
|
Gold produced (000s oz 100% basis) |
50 |
|
41 |
|
24 |
% |
91 |
|
|
|
Cost of sales ($/oz) |
2,025 |
|
2,186 |
|
(7 |
)% |
2,093 |
|
|
|
Total cash costs ($/oz)b |
902 |
|
1,010 |
|
(11 |
)% |
947 |
|
|
|
All-in sustaining costs ($/oz)b |
1,034 |
|
1,622 |
|
(36 |
)% |
1,282 |
|
|
|
Long Canyon (61.5%)f |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
34 |
|
24 |
|
42 |
% |
58 |
|
|
|
Gold produced (000s oz 100% basis) |
55 |
|
39 |
|
42 |
% |
94 |
|
|
|
Cost of sales ($/oz) |
1,026 |
|
1,170 |
|
(12 |
)% |
1,088 |
|
|
|
Total cash costs ($/oz)b |
317 |
|
353 |
(10 |
)% |
333 |
|
|
|
All-in sustaining costs ($/oz)b |
657 |
|
714 |
|
(8 |
)% |
681 |
|
|
|
Pueblo Viejo (60%) |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
179 |
|
139 |
|
29 |
% |
590 |
|
581 |
|
2 |
% |
Gold produced (000s oz 100% basis) |
298 |
|
232 |
|
29 |
% |
983 |
|
968 |
|
2 |
% |
Cost of sales ($/oz) |
660 |
|
807 |
|
(18 |
)% |
747 |
|
750 |
|
0 |
% |
Total cash costs ($/oz)b |
422 |
|
504 |
|
(16 |
)% |
471 |
|
465 |
|
1 |
% |
All-in sustaining costs ($/oz)b |
517 |
|
631 |
|
(18 |
)% |
592 |
|
623 |
|
(5 |
)% |
Production and Cost Summary - Gold
(continued)
(Unaudited) |
For the three months ended |
For the years ended |
|
12/31/2019 |
9/30/2019 |
% Change |
12/31/19 |
12/31/18 |
% Change |
Loulo-Gounkoto (80%)g |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
144 |
153 |
(6 |
)% |
572 |
|
|
Gold produced (000s oz 100% basis) |
180 |
191 |
(6 |
)% |
715 |
|
|
Cost of sales ($/oz) |
1,037 |
1,018 |
2 |
% |
1,044 |
|
|
Total cash costs ($/oz)b |
631 |
630 |
0 |
% |
634 |
|
|
All-in sustaining costs ($/oz)b |
917 |
966 |
(5 |
)% |
886 |
|
|
Kibali (45%)g |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
87 |
91 |
(4 |
)% |
366 |
|
|
Gold produced (000s oz 100% basis) |
193 |
202 |
(4 |
)% |
813 |
|
|
Cost of sales ($/oz) |
1,205 |
1,187 |
2 |
% |
1,111 |
|
|
Total cash costs ($/oz)b |
608 |
554 |
10 |
% |
568 |
|
|
All-in sustaining costs ($/oz)b |
740 |
703 |
5 |
% |
693 |
|
|
Kalgoorlie (50%)h |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
36 |
58 |
(38 |
)% |
206 |
314 |
(34 |
)% |
Gold produced (000s oz 100% basis) |
72 |
116 |
(38 |
)% |
413 |
628 |
(34 |
)% |
Cost of sales ($/oz) |
1,127 |
1,037 |
9 |
% |
1,062 |
899 |
18 |
% |
Total cash costs ($/oz)b |
940 |
856 |
10 |
% |
873 |
732 |
19 |
% |
All-in sustaining costs ($/oz)b |
1,172 |
1,170 |
0 |
% |
1,183 |
857 |
38 |
% |
Tongon (89.7%)g |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
61 |
62 |
(2 |
)% |
245 |
|
|
Gold produced (000s oz 100% basis) |
68 |
69 |
(2 |
)% |
273 |
|
|
Cost of sales ($/oz) |
1,476 |
1,396 |
6 |
% |
1,469 |
|
|
Total cash costs ($/oz)b |
803 |
793 |
1 |
% |
787 |
|
|
All-in sustaining costs ($/oz)b |
867 |
869 |
0 |
% |
844 |
|
|
Porgera (47.5%) |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
82 |
75 |
9 |
% |
284 |
204 |
39 |
% |
Gold produced (000s oz 100% basis) |
172 |
158 |
9 |
% |
597 |
429 |
39 |
% |
Cost of sales ($/oz) |
909 |
1,024 |
(11 |
)% |
994 |
996 |
0 |
% |
Total cash costs ($/oz)b |
757 |
868 |
(13 |
)% |
838 |
796 |
5 |
% |
All-in sustaining costs ($/oz)b |
894 |
1,053 |
(15 |
)% |
1,003 |
1,083 |
(7 |
)% |
Veladero (50%)i |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
71 |
58 |
22 |
% |
274 |
278 |
(1 |
)% |
Gold produced (000s oz 100% basis) |
142 |
116 |
22 |
% |
548 |
556 |
(1 |
)% |
Cost of sales ($/oz) |
1,138 |
1,243 |
(8 |
)% |
1,188 |
1,112 |
7 |
% |
Total cash costs ($/oz)b |
710 |
773 |
(8 |
)% |
734 |
629 |
17 |
% |
All-in sustaining costs ($/oz)b |
1,142 |
1,142 |
0 |
% |
1,105 |
1,154 |
(4 |
)% |
Hemlo |
|
|
|
|
|
|
Gold produced (000s oz) |
54 |
49 |
10 |
% |
213 |
171 |
25 |
% |
Cost of sales ($/oz) |
1,632 |
1,083 |
51 |
% |
1,137 |
1,157 |
(2 |
)% |
Total cash costs ($/oz)b |
1,091 |
953 |
14 |
% |
904 |
1,046 |
(14 |
)% |
All-in sustaining costs ($/oz)b |
1,380 |
1,280 |
8 |
% |
1,140 |
1,318 |
(14 |
)% |
North Maraj |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
103 |
29 |
255 |
% |
251 |
215 |
17 |
% |
Gold produced (000s oz 100% basis) |
103 |
45 |
129 |
% |
334 |
336 |
(1 |
)% |
Cost of sales ($/oz) |
1,021 |
907 |
13 |
% |
953 |
795 |
20 |
% |
Total cash costs ($/oz)b |
675 |
603 |
12 |
% |
646 |
603 |
7 |
% |
All-in sustaining costs ($/oz)b |
830 |
850 |
(2 |
)% |
802 |
830 |
(3 |
)% |
(Unaudited) |
For the three months ended |
For the years ended |
|
12/31/2019 |
9/30/2019 |
% Change |
12/31/19 |
12/31/18 |
% Change |
Buzwagij |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
28 |
18 |
56 |
% |
83 |
93 |
(11 |
)% |
Gold produced (000s oz 100% basis) |
28 |
28 |
— |
% |
115 |
146 |
(21 |
)% |
Cost of sales ($/oz) |
1,235 |
1,292 |
(4 |
)% |
1,240 |
939 |
32 |
% |
Total cash costs ($/oz)b |
1,144 |
1,202 |
(5 |
)% |
1,156 |
916 |
26 |
% |
All-in sustaining costs ($/oz)b |
1,169 |
1,220 |
(4 |
)% |
1,178 |
947 |
24 |
% |
Bulyanhuluj |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
9 |
6 |
50 |
% |
27 |
26 |
4 |
% |
Gold produced (000s oz 100% basis) |
9 |
9 |
— |
% |
37 |
41 |
(10 |
)% |
Cost of sales ($/oz) |
1,293 |
1,288 |
0 |
% |
1,207 |
1,231 |
(2 |
)% |
Total cash costs ($/oz)b |
752 |
729 |
3 |
% |
676 |
650 |
4 |
% |
All-in sustaining costs ($/oz)b |
909 |
769 |
18 |
% |
773 |
754 |
3 |
% |
Total Attributable to Barrickk |
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
1,439 |
1,306 |
10 |
% |
5,465 |
4,527 |
21 |
% |
Cost of sales ($/oz)l |
1,046 |
1,065 |
(2 |
)% |
1,005 |
892 |
13 |
% |
Total cash costs ($/oz)b |
692 |
710 |
(3 |
)% |
671 |
588 |
14 |
% |
All-in sustaining costs ($/oz)b |
923 |
984 |
(6 |
)% |
894 |
806 |
11 |
% |
a. Represents the combined results of
Cortez, Goldstrike (including our 60% share of South Arturo) and
our 75% interest in Turquoise Ridge until June 30, 2019.
Commencing July 1, 2019, the date Nevada Gold Mines was
established, the results represent our 61.5% interest in Cortez,
Carlin (including Goldstrike and 60% of South Arturo), Turquoise
Ridge (including Twin Creeks), Phoenix and Long Canyon.b.
These are non-GAAP financial performance measures with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. For further
information and a detailed reconciliation of each non-GAAP measure
used in this section of the press release to the most directly
comparable IFRS measure, please see pages 91 to 113 of our fourth
quarter 2019 MD&A.c. On July 1, 2019, Cortez was
contributed to Nevada Gold Mines, a joint venture with
Newmont. As a result, the amounts presented are on an 100%
basis up until June 30, 2019, and on a 61.5% basis thereafter.
d. On July 1, 2019, Barrick's Goldstrike and Newmont's Carlin
were contributed to Nevada Gold Mines and are now referred to as
Carlin. As a result, the amounts presented represent
Goldstrike on a 100% basis (including our 60% share of South
Arturo) up until June 30, 2019, and the combined results of Carlin
and Goldstrike (including our 60% share of South Arturo) on a 61.5%
basis thereafter. e. Barrick owned 75% of Turquoise Ridge
through to the end of the second quarter of 2019, with our joint
venture partner, Newmont, owning the remaining 25%. Turquoise Ridge
was proportionately consolidated on the basis that the joint
venture partners that have joint control have rights to the assets
and obligations for the liabilities relating to the arrangement.
The figures presented in this table are based on our 75% interest
in Turquoise Ridge until June 30, 2019. On July 1, 2019, Barrick's
75% interest in Turquoise Ridge and Newmont's Twin Creeks and 25%
interest in Turquoise Ridge were contributed to Nevada Gold
Mines. Starting July 1, 2019, the results represent our 61.5%
share of Turquoise Ridge and Twin Creeks, now referred to as
Turquoise Ridge.f. These sites were acquired as a
result of the formation of Nevada Gold Mines on July 1,
2019.g. These sites did not form a part of the Barrick
consolidated results in 2018 and 2017 as these sites were acquired
as a result of the Merger. h. On November 28, 2019, we
completed the sale of our 50% interest in Kalgoorlie in Western
Australia to Saracen Mineral Holdings Limited for total cash
consideration of $750 million. Accordingly, these represent
our 50% interest until November 28, 2019.i. On June 30, 2017,
we sold 50% of Veladero; therefore, these represent results on a
100% basis from January 1 to June 30, 2017 and on a 50% basis from
July 1, 2017 onwardsj. Formerly known as Acacia Mining
plc. On September 17, 2019, Barrick acquired all of the
shares of Acacia it did not own. Operating results are
included at 100% from October 1, 2019 (notwithstanding the
completion of the Acacia transaction on September 17, 2019, we
consolidated our interest in Acacia and recorded a non-controlling
interest of 36.1% in the income statement for the entirety of the
third quarter of 2019 as a matter of convenience) up until the
GoT’s 16% free-carried interest is made effective, which is
expected to be January 1, 2020, and on an 84% basis
thereafter.k. With the end of mining at Golden Sunlight and
Morila in the second quarter and Lagunas Norte in the third quarter
as previously reported, we have ceased to include production or
non-GAAP cost metrics for these sites from July 1, 2019 and October
1, 2019, respectively, onwards although these sites are included in
the Total Attributable to Barrick in the prior period
comparatives.l. Cost of sales per ounce (Barrick’s share) is
calculated as cost of sales - gold on an attributable basis
(excluding sites in care and maintenance) divided by gold equity
ounces sold.
Production and Cost Summary - Copper
(Unaudited) |
For the three months ended |
For the years ended |
|
12/31/2019 |
9/30/2019 |
% Change |
12/31/19 |
12/31/18 |
% Change |
Lumwana |
|
|
|
|
|
|
Copper production (millions lbs) |
63 |
65 |
(3 |
)% |
238 |
224 |
6 |
% |
Cost of sales ($/lb) |
2.22 |
2.04 |
9 |
% |
2.13 |
2.51 |
(15 |
)% |
C1 cash costs ($/lb)a |
2.10 |
1.83 |
15 |
% |
1.79 |
2.08 |
(14 |
)% |
All-in sustaining costs ($/lb)a |
3.41 |
3.66 |
(7 |
)% |
3.04 |
3.08 |
(1 |
)% |
Zaldívar
(50%) |
|
|
|
|
|
|
Copper production (millions lbs attributable basis) |
36 |
32 |
13 |
% |
128 |
104 |
23 |
% |
Copper produced (millions lbs 100% basis) |
72 |
64 |
13 |
% |
256 |
208 |
23 |
% |
Cost of sales ($/lb) |
2.59 |
2.18 |
19 |
% |
2.46 |
2.55 |
(4 |
)% |
C1 cash costs ($/lb)a |
1.95 |
1.55 |
26 |
% |
1.77 |
1.97 |
(10 |
)% |
All-in sustaining costs ($/lb)a |
2.56 |
1.91 |
34 |
% |
2.15 |
2.47 |
(13 |
)% |
Jabal Sayid (50%) |
|
|
|
|
|
|
Copper production (millions lbs attributable basis) |
18 |
15 |
20 |
% |
66 |
55 |
20 |
% |
Copper produced (millions lbs 100% basis) |
36 |
30 |
20 |
% |
132 |
110 |
20 |
% |
Cost of sales ($/lb) |
1.47 |
1.63 |
(10 |
)% |
1.53 |
1.73 |
(12 |
)% |
C1 cash costs ($/lb)a |
1.29 |
1.42 |
(9 |
)% |
1.26 |
1.53 |
(18 |
)% |
All-in sustaining costs ($/lb)a |
1.78 |
1.65 |
8 |
% |
1.51 |
1.92 |
(21 |
)% |
Total Copper |
|
|
|
|
|
|
Copper production (millions lbs attributable basis) |
117 |
112 |
4 |
% |
432 |
383 |
13 |
% |
Cost of sales ($/lb)b |
2.26 |
2.00 |
13 |
% |
2.14 |
2.40 |
(11 |
)% |
C1 cash costs ($/lb)a |
1.90 |
1.62 |
17 |
% |
1.69 |
1.97 |
(14 |
)% |
All-in sustaining costs ($/lb)a |
2.82 |
2.58 |
9 |
% |
2.52 |
2.82 |
(11 |
)% |
- These are non-GAAP financial performance measures with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. For further
information and a detailed reconciliation of each non-GAAP measure
used in this section of the MD&A to the most directly
comparable IFRS measure, please see pages 91 to 113 of our fourth
quarter 2019 MD&A.
- Cost of sales per pound (Barrick’s share) is calculated as cost
of sales - copper plus our equity share of cost of sales
attributable to Zaldívar and Jabal Sayid divided by copper pounds
sold.
Appendix 32020 Outlook Assumptions and
Economic Sensitivity Analysis
Outlook Assumptions and Economic Sensitivity
Analysis
|
2020 Guidance Assumption |
Hypothetical Change |
Impact on EBITDA (millions)25 |
Impact on All-in Sustaining Costs8,9 |
|
Gold revenue, net of
royalties |
$1,350/oz |
+/- $100/oz |
+/- $472 |
+/- $4/oz |
Copper
revenue, net of royalties |
$2.75/lb |
+/- $0.50/lb |
+/- $224 |
+/- $0.02/lb |
TECHNICAL INFORMATION
The scientific and technical information
contained in this press release has been reviewed and approved by
Steven Yopps, MMSA, Director - Metallurgy, North America; Craig
Fiddes, North America Resource Modeling Manager; Chad Yuhasz,
P.Geo, Mineral Resource Manager, Latin America and Australia
Pacific; Simon Bottoms, CGeol, MGeol, FGS, MAusIMM, Mineral
Resources Manager: Africa and Middle East; Rodney Quick, MSc, Pr.
Sci.Nat, Mineral Resource Management and Evaluation Executive; John
Steele, CIM, Metallurgy, Engineering and Capital Projects
Executive; and Rob Krcmarov, FAusIMM, Executive Vice President,
Exploration and Growth – each a “Qualified Person” as defined in
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
All mineral reserve and mineral resource
estimates are estimated in accordance with National Instrument
43-101 – Standards of Disclosure for Mineral Projects. Unless
otherwise noted, such mineral reserve and mineral resource
estimates are as of December 31, 2019.
Endnotes
Endnote 1
In this press release of unaudited financial
results, “adjusted net earnings” and “adjusted net earnings per
share” are non-GAAP financial performance measures. Adjusted net
earnings excludes the following from net earnings: certain
impairment charges (reversals) related to intangibles, goodwill,
property, plant and equipment, and investments; gains (losses) and
other one-time costs relating to acquisitions or dispositions;
foreign currency translation gains (losses); significant tax
adjustments not related to current period earnings; unrealized
gains (losses) on non-hedge derivative instruments; and the tax
effect and non-controlling interest of these items. The Company
uses this measure internally to evaluate our underlying operating
performance for the reporting periods presented and to assist with
the planning and forecasting of future operating results. Barrick
believes that adjusted net earnings is a useful measure of our
performance because these adjusting items do not reflect the
underlying operating performance of our core mining business and
are not necessarily indicative of future operating results.
Adjusted net earnings and adjusted net earnings per share are
intended to provide additional information only and do not have any
standardized meaning under IFRS and may not be comparable to
similar measures of performance presented by other companies. They
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Further
details on these non-GAAP measures are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov.
Reconciliation of Net Earnings to Net Earnings per
Share, Adjusted Net Earnings and Adjusted Net Earnings per
Share(Unaudited)
($ millions, except per share amounts in dollars) |
For the three months ended |
For the years ended |
|
12/31/19 |
9/30/19 |
12/31/19 |
12/31/18 |
12/31/17 |
Net earnings (loss) attributable to equity holders of the
Company |
1,387 |
|
2,277 |
|
3,969 |
|
(1,545 |
) |
1,438 |
|
Impairment charges (reversals) related to long-lived assetsa |
(566 |
) |
(872 |
) |
(1,423 |
) |
900 |
|
(212 |
) |
Acquisition/disposition (gains) lossesb |
(414 |
) |
(1,901 |
) |
(2,327 |
) |
(68 |
) |
(911 |
) |
(Gain) loss on currency translation |
53 |
|
40 |
|
109 |
|
136 |
|
72 |
|
Significant tax adjustmentsc |
74 |
|
35 |
|
34 |
|
742 |
|
244 |
|
Other (income) expense adjustmentsd |
(845 |
) |
53 |
|
(687 |
) |
366 |
|
178 |
|
Unrealized gains (losses) on non-hedge derivative instruments |
0 |
|
1 |
|
0 |
|
1 |
|
(1 |
) |
Tax effect and non-controlling intereste |
611 |
|
631 |
|
1,227 |
|
(123 |
) |
68 |
|
Adjusted net earnings |
300 |
|
264 |
|
902 |
|
409 |
|
876 |
|
Net earnings (loss) per sharef |
0.78 |
|
1.30 |
|
2.26 |
|
(1.32 |
) |
1.23 |
|
Adjusted net earnings per sharef |
0.17 |
|
0.15 |
|
0.51 |
|
0.35 |
|
0.75 |
|
- Net impairment reversals for the current year primarily relate
to non-current asset reversals at Pueblo Viejo, partially offset by
impairment charges at Pascua-Lama in the fourth quarter of
2019. This was further impacted by non-current asset
reversals at Lumwana in the third quarter of 2019. Net
impairment charges for 2018 primarily relate to non-current asset
impairments at Lagunas Norte and non-current asset and goodwill
impairments at Veladero.
- Acquisition/disposition gains for the current year primarily
relate to the gain on the sale of our 50% interest in Kalgoorlie in
the fourth quarter of 2019 and the gain on the remeasurement of
Turquoise Ridge to fair value as a result of its contribution to
Nevada Gold Mines in the third quarter of 2019.
- Significant tax adjustments in 2018 primarily relate to the
de-recognition of our Canadian and Peruvian deferred tax
assets.
- Other expense adjustments for the current year primarily relate
to the gain on the de-recognition of the deferred revenue liability
relating to our silver sale agreement with Wheaton Precious Metals
Corp. and the gain on a tax settlement at Lumwana, both occurring
in the fourth quarter of 2019.
- Tax effect and non-controlling interest for the current year
primarily relates to the impairment charges related to long-lived
assets.
- Calculated using weighted average number of shares outstanding
under the basic method of earnings per share.
Endnote 2A Tier One Gold Asset
is a mine with a stated life in excess of 10 years, annual
production of at least 500,000 ounces of gold and total cash costs
per ounce over the mine life that are in the lower half of the
industry cost curve.
Endnote 3Includes Tanzania on a
63.9% basis (notwithstanding the completion of the Acacia
transaction on September 17, 2019, we consolidated our interest in
Acacia and recorded a non-controlling interest of 36.1% in the
income statement for the entirety of the third quarter of 2019 as a
matter of convenience), Pueblo Viejo on a 60% basis, South Arturo
on a 60% basis (36.9% from July 1, 2019 onwards as a result of its
contribution to Nevada Gold Mines), and Veladero on a 50% basis,
which reflects our equity share of production and sales. Also
includes Loulo-Gounkoto on an 80% basis, Kibali on a 45% basis,
Tongon on an 89.7% basis and Morila on a 40% basis, which reflects
our equity share of production and sales, commencing January 1,
2019, the effective date of the Merger. Also removes the
non-controlling interest of 38.5% Nevada Gold Mines from July 1,
2019 onwards.
Endnote 4"Realized price" is a
non-GAAP financial measure which excludes from sales: unrealized
gains and losses on non-hedge derivative contracts; unrealized
mark-to-market gains and losses on provisional pricing from copper
and gold sales contracts; sales attributable to ore purchase
arrangements; treatment and refining charges; export duties;
and cumulative catch-up adjustments to revenue relating to our
streaming arrangements. This measure is intended to enable
Management to better understand the price realized in each
reporting period for gold and copper sales because unrealized
mark-to-market values of non-hedge gold and copper derivatives are
subject to change each period due to changes in market factors such
as market and forward gold and copper prices, so that prices
ultimately realized may differ from those recorded. The exclusion
of such unrealized mark-to-market gains and losses from the
presentation of this performance measure enables investors to
understand performance based on the realized proceeds of selling
gold and copper production. The realized price measure is intended
to provide additional information and does not have any
standardized definition under IFRS and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Further details on these non-GAAP measures
are provided in the MD&A accompanying Barrick’s financial
statements filed from time to time on SEDAR
at www.sedar.com and on EDGAR
at www.sec.gov.
Reconciliation of Sales to Realized
Price per ounce/pound(Unaudited)
($
millions, except per ounce/pound information in dollars) |
Gold |
Copper |
Gold |
Copper |
|
For the three months ended |
For the years ended |
|
12/31/19 |
9/30/19 |
12/31/19 |
9/30/19 |
12/31/19 |
12/31/18 |
12/31/17 |
12/31/19 |
12/31/18 |
12/31/17 |
Sales |
2,758 |
|
2,585 |
|
82 |
|
45 |
|
9,186 |
|
6,600 |
|
7,631 |
|
393 |
|
512 |
|
608 |
|
Sales applicable to
non-controlling interests |
(769 |
) |
(748 |
) |
0 |
|
0 |
|
(1,981 |
) |
(734 |
) |
(810 |
) |
0 |
|
0 |
|
0 |
|
Sales applicable to equity
method investmentsa,b |
139 |
|
140 |
|
147 |
|
100 |
|
543 |
|
0 |
|
0 |
|
492 |
|
442 |
|
427 |
|
Realized non-hedge gold/copper
derivative (losses) gains |
0 |
|
0 |
|
0 |
|
0 |
|
1 |
|
2 |
|
3 |
|
0 |
|
0 |
|
0 |
|
Sales applicable to sites in
care and maintenancec |
(56 |
) |
(32 |
) |
0 |
|
0 |
|
(140 |
) |
(111 |
) |
(153 |
) |
0 |
|
0 |
|
0 |
|
Treatment and refinement
charges |
0 |
|
0 |
|
25 |
|
18 |
|
0 |
|
1 |
|
1 |
|
99 |
|
144 |
|
157 |
|
Export duties |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
(1 |
) |
0 |
|
0 |
|
0 |
|
0 |
|
Otherd |
22 |
|
0 |
|
0 |
|
0 |
|
22 |
|
12 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Revenues – as adjusted |
2,094 |
|
1,945 |
|
254 |
|
163 |
|
7,631 |
|
5,769 |
|
6,672 |
|
984 |
|
1,098 |
|
1,192 |
|
Ounces/pounds sold (000s ounces/millions pounds)c |
1,413 |
|
1,318 |
|
91 |
|
65 |
|
5,467 |
|
4,544 |
|
5,302 |
|
355 |
|
382 |
|
405 |
|
Realized gold/copper price per ounce/pounde |
1,483 |
|
1,476 |
|
2.76 |
|
2.55 |
|
1,396 |
|
1,270 |
|
1,258 |
|
2.77 |
|
2.88 |
|
2.95 |
|
a. Represents sales of $130
million and $505 million, respectively, for the three months and
year ended December 31, 2019 (September 30, 2019: $133
million; 2018: $nil; 2017: $nil) applicable to our 45% equity
method investment in Kibali and $9 million and $39 million,
respectively (September 30, 2019: $8 million; 2018: $nil;
2017: $nil) applicable to our 40% equity method investment in
Morila for gold. Represents sales of $110 million and $343
million for the three months and year ended December 31,
2019 (September 30, 2019: $66 million; 2018:
$300 million; 2017: $325 million) applicable to our 50% equity
method investment in Zaldívar and $43 million and $168 million,
respectively (September 30, 2019: $37 million; 2018: $161
million; 2017: $116 million) applicable to our 50% equity method
investment in Jabal Sayid.b. Sales applicable to
equity method investments are net of treatment and refinement
charges.c. Figures exclude Pierina, Golden
Sunlight and Morila starting in the third quarter of 2019, and
Lagunas Norte starting in the fourth quarter of 2019 from the
calculation of realized price per ounce, which are mining
incidental ounces as they enter closure.d.
Represents cumulative catch-up adjustment to revenue relating to
our streaming arrangements.e. Realized price per
ounce/pound may not calculate based on amounts presented in this
table due to rounding.
Endnote 5“Free cash flow” is a
non-GAAP financial performance measure which deducts capital
expenditures from net cash provided by operating activities.
Barrick believes this to be a useful indicator of our ability to
operate without reliance on additional borrowing or usage of
existing cash. Free cash flow is intended to provide additional
information only and does not have any standardized meaning under
IFRS and may not be comparable to similar measures of performance
presented by other companies. Free cash flow should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Further details on
this non-GAAP measure are provided in the MD&A accompanying
Barrick’s financial statements filed from time to time on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Cash Provided by
Operating Activities to Free Cash Flow(Unaudited)
($ millions) |
For the three months ended |
For the years ended |
|
12/31/19 |
9/30/19 |
12/31/19 |
12/31/18 |
12/31/17 |
Net cash provided by operating activities |
875 |
|
1,004 |
|
2,833 |
|
1,765 |
|
2,065 |
|
Capital expenditures |
(446 |
) |
(502 |
) |
(1,701 |
) |
(1,400 |
) |
(1,396 |
) |
Free cash flow |
429 |
|
502 |
|
1,132 |
|
365 |
|
669 |
|
Endnote 6These amounts are
presented on the same basis as our guidance and include our 60%
share of Pueblo Viejo and South Arturo (36.9% of South Arturo from
July 1, 2019 onwards as a result of its contribution to Nevada Gold
Mines), our 63.9% share of Tanzania until September 30, 2019
(notwithstanding the completion of the Acacia transaction on
September 17, 2019, we consolidated our interest in Acacia and
recorded a non-controlling interest of 36.1% in the income
statement for the entirety of the third quarter of 2019 as a matter
of convenience) and our 50% share of Zaldívar and Jabal
Sayid. Also includes our 80% share of Loulo-Gounkoto, 89.7%
share of Tongon, 45% share of Kibali and 40% share of Morila
commencing January 1, 2019, the effective date of the Merger.
Starting July 1, 2019, it also includes our 61.5% share of Nevada
Gold Mines.
Endnote 7Cost of sales
applicable to gold per ounce is calculated using cost of sales
applicable to gold on an attributable basis (removing the
non-controlling interest of 40% Pueblo Viejo, 36.1% Tanzania until
September 30, 2019 (notwithstanding the completion of the Acacia
transaction on September 17, 2019, we consolidated our interest in
Acacia and recorded a non-controlling interest of 36.1% in the
income statement for the entirety of the third quarter of 2019 as a
matter of convenience) and 40% South Arturo from cost of sales
(63.1% of South Arturo from July 1, 2019 onwards as a result of its
contribution to Nevada Gold Mines)), divided by attributable gold
ounces. The non-controlling interest of 20% Loulo-Gounkoto and
10.3% of Tongon is also removed from cost of sales and our
proportionate share of cost of sales attributable to equity method
investments (Kibali and Morila) is included commencing January 1,
2019, the effective date of the Merger. Also removes the
non-controlling interest of 38.5% Nevada Gold Mines from cost of
sales from July 1, 2019 onwards. Cost of sales applicable to copper
per pound is calculated using cost of sales applicable to copper
including our proportionate share of cost of sales attributable to
equity method investments (Zaldívar and Jabal Sayid), divided by
consolidated copper pounds (including our proportionate share of
copper pounds from our equity method investments).
Endnote 8“Total cash costs” per
ounce, “All-in sustaining costs” per ounce and "All-in costs" per
ounce are non-GAAP financial performance measures. “Total cash
costs” per ounce starts with cost of sales related to gold
production but removes depreciation, the non-controlling interest
of cost of sales, and includes by-product credits. “All-in
sustaining costs” per ounce begin with “Total cash costs” per ounce
and add further costs which reflect the expenditures made to
maintain current production levels, primarily sustaining capital
expenditures, sustaining leases, general & administrative
costs, minesite exploration and evaluation costs, and reclamation
cost accretion and amortization. "All-in costs" per ounce
starts with "All-in sustaining costs" per ounce and adds additional
costs that reflect the varying costs of producing gold over the
life-cycle of a mine, including: project capital expenditures and
other non-sustaining costs. Barrick believes that the use of
“total cash costs” per ounce, “all-in sustaining costs” per ounce
and "All-in costs" per ounce will assist investors, analysts and
other stakeholders in understanding the costs associated with
producing gold, understanding the economics of gold mining,
assessing our operating performance and also our ability to
generate free cash flow from current operations and to generate
free cash flow on an overall Company basis. “Total cash costs” per
ounce, “All-in sustaining costs” per ounce and "All-in costs" per
ounce are intended to provide additional information only and do
not have any standardized meaning under IFRS. Although a
standardized definition of all-in sustaining costs was published in
2013 by the World Gold Council (a market development
organization for the gold industry comprised of and funded by 25
gold mining companies from around the world, including Barrick), it
is not a regulatory organization, and other companies may calculate
this measure differently. Starting from the first quarter of 2019,
we have renamed "cash costs" to "total cash costs" when referring
to our gold operations. The calculation of total cash costs
is identical to our previous calculation of cash costs with only a
change in the naming convention of this non-GAAP measure.
These measures should not be considered in isolation or as a
substitute for measures prepared in accordance with IFRS. Further
details on these non-GAAP measures are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov.
Reconciliation of Gold Cost of Sales to
Total cash costs, All-in sustaining costs and All-in costs,
including on a per ounce basis(Unaudited)
($
millions, except per ounce information in dollars) |
|
For the three months ended |
For the years ended |
|
Footnote |
12/31/19 |
9/30/19 |
12/31/19 |
12/31/18 |
12/31/17 |
Cost of sales applicable to gold
production |
|
1,896 |
|
1,831 |
|
6,514 |
|
4,621 |
|
4,836 |
|
Depreciation |
|
(549 |
) |
(538 |
) |
(1,902 |
) |
(1,253 |
) |
(1,529 |
) |
Cash cost of sales applicable to equity method investments |
|
57 |
|
45 |
|
226 |
|
0 |
|
0 |
|
By-product credits |
|
(43 |
) |
(48 |
) |
(138 |
) |
(131 |
) |
(135 |
) |
Realized (gains) losses on hedge and non-hedge derivatives |
a |
1 |
|
1 |
|
1 |
|
3 |
|
23 |
|
Non-recurring items |
b |
(22 |
) |
(4 |
) |
(55 |
) |
(172 |
) |
0 |
|
Other |
c |
(37 |
) |
(19 |
) |
(102 |
) |
(87 |
) |
(106 |
) |
Non-controlling interests |
d |
(326 |
) |
(339 |
) |
(878 |
) |
(313 |
) |
(299 |
) |
Total cash costs |
|
977 |
|
929 |
|
3,666 |
|
2,668 |
|
2,790 |
|
General & administrative costs |
|
31 |
|
68 |
|
212 |
|
265 |
|
248 |
|
Minesite exploration and evaluation costs |
e |
24 |
|
22 |
|
69 |
|
45 |
|
47 |
|
Minesite sustaining capital expenditures |
f |
394 |
|
406 |
|
1,320 |
|
975 |
|
1,109 |
|
Sustaining leases |
|
4 |
|
5 |
|
27 |
|
0 |
|
0 |
|
Rehabilitation - accretion and amortization (operating sites) |
g |
7 |
|
28 |
|
65 |
|
81 |
|
64 |
|
Non-controlling interest, copper operations and other |
h |
(135 |
) |
(184 |
) |
(470 |
) |
(374 |
) |
(273 |
) |
All-in sustaining costs |
|
1,302 |
|
1,274 |
|
4,889 |
|
3,660 |
|
3,985 |
|
Project exploration and evaluation and project costs |
e |
60 |
|
64 |
|
273 |
|
338 |
|
307 |
|
Community relations costs not related to current operations |
|
0 |
|
1 |
|
2 |
|
4 |
|
4 |
|
Project capital expenditures |
f |
46 |
|
96 |
|
370 |
|
459 |
|
273 |
|
Rehabilitation - accretion and amortization (non-operating
sites) |
g |
3 |
|
5 |
|
22 |
|
33 |
|
20 |
|
Non-controlling interest and copper operations and other |
h |
(28 |
) |
(46 |
) |
(105 |
) |
(21 |
) |
(21 |
) |
All-in
costs |
|
1,383 |
|
1,394 |
|
5,451 |
|
4,473 |
|
4,568 |
|
Ounces sold - equity basis (000s ounces) |
i |
1,413 |
|
1,318 |
|
5,467 |
|
4,544 |
|
5,302 |
|
Cost of sales per ounce |
j,k |
1,046 |
|
1,065 |
|
1,005 |
|
892 |
|
794 |
|
Total cash costs per ounce |
k |
692 |
|
710 |
|
671 |
|
588 |
|
526 |
|
Total
cash costs per ounce (on a co-product basis) |
k,l |
712 |
|
735 |
|
689 |
|
607 |
|
544 |
|
All-in sustaining costs per
ounce |
k |
923 |
|
984 |
|
894 |
|
806 |
|
750 |
|
All-in
sustaining costs per ounce (on a co-product basis) |
k,l |
943 |
|
1,009 |
|
912 |
|
825 |
|
768 |
|
All-in costs per ounce |
k |
976 |
|
1,074 |
|
996 |
|
985 |
|
860 |
|
All-in
costs per ounce (on a co-product basis) |
k,l |
996 |
|
1,099 |
|
1,014 |
|
1,004 |
|
878 |
|
a. Realized (gains) losses
on hedge and non-hedge derivatives
Includes realized hedge losses of $nil and $nil
for the three months and year ended December 31, 2019,
respectively (September 30, 2019: $nil; 2018: $4 million;
2017: $27 million), and realized non-hedge losses of
$1 million and $1 million for the three months and year ended
December 31, 2019, respectively (September 30, 2019: $1
million; 2018: gains of $1 million; 2017: gains of
$4 million).
b. Non-recurring
items
Non-recurring items in 2019 relate to
organizational restructuring. These costs are not indicative
of our cost of production and have been excluded from the
calculation of total cash costs.
c. Other
Other adjustments for the three months and year
ended December 31, 2019 include the removal of total cash
costs and by-product credits associated with our Pierina mine,
Golden Sunlight and Morila starting in the third quarter of 2019,
and Lagunas Norte starting in the fourth quarter of 2019, which all
are mining incidental ounces as they enter closure, of $35 million
and $92 million, respectively (September 30, 2019: $19
million; 2018: $87 million; 2017: $108 million).
d. Non-controlling
interests
Non-controlling interests include
non-controlling interests related to gold production of
$477 million and $1,306 million, respectively, for the three
months and year ended December 31, 2019 (September 30,
2019: $506 million; 2018: $453 million; 2017: $454 million).
Non-controlling interests include Pueblo Viejo and Tanzania until
September 30, 2019 (notwithstanding the completion of the Acacia
transaction on September 17, 2019, we consolidated our interest in
Acacia and recorded a non-controlling interest of 36.1% in the
income statement for the entirety of the third quarter of 2019 as a
matter of convenience). Starting January 1, 2019, the
effective date of the Merger, non-controlling interests also
include Loulo-Gounkoto and Tongon and starting July 1, 2019, it
also includes Nevada Gold Mines.
e. Exploration and
evaluation costs
Exploration, evaluation and project expenses are
presented as minesite if it supports current mine operations and
project if it relates to future projects. Refer to page 82 of the
Fourth Quarter 2019 MD&A.
f. Capital
expenditures
Capital expenditures are related to our gold
sites only and are presented on a 100% cash basis starting from
January 1, 2019 and on a 100% accrued basis for 2018 and
2017. They are split between minesite sustaining and project
capital expenditures. Project capital expenditures are distinct
projects designed to increase the net present value of the mine and
are not related to current production. Significant projects in the
current year are stripping at Rangefront declines, Cortez
Crossroads, the Goldrush exploration declines, the Deep South
Expansion, and construction of the third shaft at Turquoise
Ridge. Refer to page 81 of the Fourth Quarter 2019
MD&A.
g. Rehabilitation -
accretion and amortization
Includes depreciation on the assets related to
rehabilitation provisions of our gold operations and accretion on
the rehabilitation provisions of our gold operations, split between
operating and non-operating sites.
h. Non-controlling interest
and copper operations
Removes general & administrative costs
related to non-controlling interests and copper based on a
percentage allocation of revenue. Also removes exploration,
evaluation and project expenses, rehabilitation costs and capital
expenditures incurred by our copper sites and the non-controlling
interest of our Tanzania operations until September 30, 2019
(notwithstanding the completion of the Acacia transaction on
September 17, 2019, we consolidated our interest in Acacia and
recorded a non-controlling interest of 36.1% in the income
statement for the entirety of the third quarter of 2019 as a matter
of convenience) and Pueblo Viejo and South Arturo (63.1% of South
Arturo from July 1, 2019 onwards as a result of its contribution to
Nevada Gold Mines). Also removes the non-controlling interest of
our Loulo-Gounkoto and Tongon operating segments commencing January
1, 2019, the effective date of the Merger, and of Nevada Gold Mines
starting July 1, 2019. It also includes capital expenditures
applicable to equity method investments. Figures remove the impact
of Pierina, Golden Sunlight and Morila starting in the third
quarter of 2019, and Lagunas Norte starting in the fourth quarter
of 2019. The impact is summarized as the following:
($ millions) |
For the three months ended |
For the years ended |
Non-controlling interest, copper operations and other |
12/31/19 |
9/30/19 |
12/31/19 |
12/31/18 |
12/31/17 |
General &
administrative costs |
(3 |
) |
(22 |
) |
(58 |
) |
(104 |
) |
(21 |
) |
Minesite exploration and evaluation costs |
(6 |
) |
(9 |
) |
(16 |
) |
(3 |
) |
(12 |
) |
Rehabilitation - accretion and amortization (operating sites) |
(1 |
) |
(10 |
) |
(13 |
) |
(6 |
) |
(10 |
) |
Minesite sustaining capital expenditures |
(125 |
) |
(143 |
) |
(383 |
) |
(261 |
) |
(230 |
) |
All-in sustaining costs total |
(135 |
) |
(184 |
) |
(470 |
) |
(374 |
) |
(273 |
) |
Project exploration and
evaluation and project costs |
(14 |
) |
(12 |
) |
(54 |
) |
(16 |
) |
(17 |
) |
Project capital expenditures |
(14 |
) |
(34 |
) |
(51 |
) |
(5 |
) |
(4 |
) |
All-in costs total |
(28 |
) |
(46 |
) |
(105 |
) |
(21 |
) |
(21 |
) |
i. Ounces sold - equity
basis
Figures remove the impact of Pierina, Golden
Sunlight and Morila starting in the third quarter of 2019, and
Lagunas Norte starting in the fourth quarter of 2019, which are
mining incidental ounces as the sites enter closure.
j. Cost of sales per
ounce
Figures remove the cost of sales impact of
Pierina of $14 million and $113 million, respectively, for the
three months and year ended December 31, 2019
(September 30, 2019: $28 million; 2018: $116 million; 2017:
$174 million); starting in the third quarter of 2019, Golden
Sunlight of $nil and $1 million, respectively, for the three months
and year ended December 31, 2019 (September 30, 2019: $1
million; 2018: $nil; 2017: $nil) and Morila of $13 million and $23
million, respectively, for the three months and year ended
December 31, 2019 (September 30, 2019: $10 million; 2018:
$nil; 2017: $nil); and starting in the fourth quarter of 2019,
Lagunas Norte of $26 million and $26 million, respectively,
for the three months and year ended December 31, 2019
(September 30, 2019: $nil; 2018: $nil; 2017: $nil), which are
mining incidental ounces as these sites enter closure. Cost of
sales per ounce excludes non-controlling interest related to gold
production. Cost of sales applicable to gold per ounce is
calculated using cost of sales on an attributable basis (removing
the non-controlling interest of 40% Pueblo Viejo, 36.1% Tanzania
until September 30, 2019 (notwithstanding the completion of the
Acacia transaction on September 17, 2019, we consolidated our
interest in Acacia and recorded a non-controlling interest of 36.1%
in the income statement for the entirety of the third quarter of
2019 as a matter of convenience) and 40% South Arturo from cost of
sales (63.1% of South Arturo from July 1, 2019 onwards as a result
of its contribution to Nevada Gold Mines)), divided by attributable
gold ounces. The non-controlling interest of 20% Loulo-Gounkoto and
10.3% of Tongon is also removed from cost of sales and our
proportionate share of cost of sales attributable to equity method
investments (Kibali and Morila) is included commencing January 1,
2019, the effective date of the Merger. Also removes the
non-controlling interest of 38.5% Nevada Gold Mines from cost of
sales from July 1, 2019 onwards.
k. Per ounce
figures
Cost of sales per ounce, cash costs per ounce,
all-in sustaining costs per ounce and all-in costs per ounce may
not calculate based on amounts presented in this table due to
rounding.
l. Co-product costs per
ounce
Cash costs per ounce, all-in sustaining costs
per ounce and all-in costs per ounce presented on a co-product
basis remove the impact of by-product credits of our gold
production (net of non-controlling interest) calculated as:
($ millions) |
For the three months ended |
For the years ended |
|
12/31/19 |
9/30/19 |
12/31/19 |
12/31/18 |
12/31/17 |
By-product credits |
43 |
|
48 |
|
138 |
|
131 |
|
135 |
|
Non-controlling interest |
(17 |
) |
(16 |
) |
(48 |
) |
(45 |
) |
(30 |
) |
By-product credits (net of non-controlling interest) |
26 |
|
32 |
|
90 |
|
86 |
|
105 |
|
Endnote 9“C1 cash costs” per
pound and “All-in sustaining costs” per pound are non-GAAP
financial performance measures. “C1 cash costs” per pound is based
on cost of sales but excludes the impact of depreciation and
royalties and production taxes and includes treatment and
refinement charges. “All-in sustaining costs” per pound begins with
“C1 cash costs” per pound and adds further costs which reflect the
additional costs of operating a mine, primarily sustaining capital
expenditures, general & administrative costs and royalties and
production taxes. Barrick believes that the use of “C1 cash costs”
per pound and “all-in sustaining costs” per pound will assist
investors, analysts, and other stakeholders in understanding the
costs associated with producing copper, understanding the economics
of copper mining, assessing our operating performance, and also our
ability to generate free cash flow from current operations and to
generate free cash flow on an overall Company basis. “C1 cash
costs” per pound and “All-in sustaining costs” per pound are
intended to provide additional information only, do not have any
standardized meaning under IFRS, and may not be comparable to
similar measures of performance presented by other companies. These
measures should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS.
Further details on these non-GAAP measures are provided in the
MD&A accompanying Barrick’s financial statements filed from
time to time on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov.
Reconciliation of Copper Cost of Sales
to C1 cash costs and All-in sustaining costs, including on a per
pound basis(Unaudited)
($
millions, except per pound information in dollars) |
For the three months ended |
For the years ended |
|
12/31/19 |
9/30/19 |
12/31/19 |
12/31/18 |
12/31/17 |
Cost of sales |
80 |
|
49 |
|
361 |
|
558 |
|
399 |
|
Depreciation/amortization |
(17 |
) |
(13 |
) |
(100 |
) |
(170 |
) |
(83 |
) |
Treatment and
refinement charges |
25 |
|
18 |
|
99 |
|
144 |
|
157 |
|
Cash cost of sales applicable to equity method
investments |
94 |
|
59 |
|
288 |
|
281 |
|
245 |
|
Less: royalties and
production taxesa |
(9 |
) |
(5 |
) |
(35 |
) |
(44 |
) |
(38 |
) |
By-product credits |
(1 |
) |
(3 |
) |
(9 |
) |
(6 |
) |
(5 |
) |
Other |
0 |
|
0 |
|
(5 |
) |
(11 |
) |
0 |
|
C1 cash cost of sales |
172 |
|
105 |
|
599 |
|
752 |
|
675 |
|
General &
administrative costs |
3 |
|
5 |
|
19 |
|
28 |
|
12 |
|
Rehabilitation -
accretion and amortization |
7 |
|
2 |
|
15 |
|
16 |
|
12 |
|
Royalties and
production taxes |
9 |
|
5 |
|
35 |
|
44 |
|
38 |
|
Minesite exploration
and evaluation costs |
2 |
|
1 |
|
6 |
|
4 |
|
6 |
|
Minesite sustaining
capital expenditures |
60 |
|
48 |
|
215 |
|
220 |
|
204 |
|
Sustaining leases |
3 |
|
0 |
|
5 |
|
0 |
|
0 |
|
Inventory write-downs |
0 |
|
0 |
|
0 |
|
11 |
|
0 |
|
All-in sustaining costs |
256 |
|
166 |
|
894 |
|
1,075 |
|
947 |
|
Pounds sold - consolidated basis (millions pounds) |
91 |
|
65 |
|
355 |
|
382 |
|
405 |
|
Cost of sales per poundb,c |
2.26 |
|
2.00 |
|
2.14 |
|
2.40 |
|
1.77 |
|
C1 cash cost per poundb |
1.90 |
|
1.62 |
|
1.69 |
|
1.97 |
|
1.66 |
|
All-in sustaining costs per poundb |
2.82 |
|
2.58 |
|
2.52 |
|
2.82 |
|
2.34 |
|
a. For the three months and year
ended December 31, 2019, royalties and production taxes
include royalties of $8 million and $34 million, respectively
(September 30, 2019: $5 million, 2018: $39 million and 2017:
$38 million ).b. Cost of sales per pound, C1 cash costs
per pound and all-in sustaining costs per pound may not calculate
based on amounts presented in this table due to
rounding.c. Cost of sales per pound related to copper is
calculated using cost of sales including our proportionate share of
cost of sales attributable to equity method investments (Zaldívar
and Jabal Sayid), divided by consolidated copper pounds sold
(including our proportionate share of copper pounds sold from our
equity method investments).
Endnote 10The declaration and
payment of dividends is at the discretion of the Board of
Directors, and will depend on the Company’s financial results, cash
requirements, prospects, and other factors deemed relevant by the
Board.
Endnote 11Estimated in
accordance with National Instrument 43-101 as required by Canadian
securities regulatory authorities. Estimates are as of December 31,
2019. Fourmile inferred resources were 5.4 million tonnes at 10.9
g/t for 1.9 million ounces of gold as at December 31, 2019 compared
to 1.2 million ounces at 18.6 g/t for 700,000 ounces of gold as at
December 31, 2018. Complete mineral reserve and resource data,
including tonnes, grades, and ounces, as well as the assumptions on
which the mineral reserves for Barrick are reported, are set out in
Barrick’s Q4 2019 Report issued on February 12, 2020.
Endnote 12Estimated in
accordance with National Instrument 43-101 as required by Canadian
securities regulatory authorities. Estimates are as of December 31,
2019, unless otherwise noted. Proven reserves of 280 million tonnes
grading 2.42 g/t, representing 22 million ounces of gold; 420
million tonnes grading 0.4%, representing 3,700 million pounds of
copper; and 150 million tonnes grading 4.31 g/t, representing 21
million ounces of silver. Probable reserves of 1,000 million tonnes
grading 1.48 g/t, representing 49 million ounces of gold; 1,200
million tonnes grading 0.38%, representing 9,800 million pounds of
copper; and 750 million tonnes grading 5.18 g/t, representing 120
million ounces of silver. Measured resources of 530 million tonnes
grading 2.21 g/t, representing 37 million ounces of gold; 660
million tonnes grading 0.38%, representing 5,500 million pounds of
copper; and 350 million tonnes grading 12.52 g/t, representing 140
million ounces of silver. Indicated resources of 2,800 million
tonnes grading 1.43 g/t, representing 130 million ounces of gold;
2,400 million tonnes grading 0.38%, representing 21,000 million
pounds of copper; and 2,000 million tonnes grading 13.44 g/t,
representing 870 million ounces of silver. Inferred resources of
940 million tonnes grading 1.3 g/t, representing 39 million ounces
of gold; 430 million tonnes grading 0.2%, representing 2,200
million pounds of copper; and 460 million tonnes grading 3.20 g/t,
representing 47 million ounces of silver. Complete mineral reserve
and resource data, including tonnes, grades, and ounces, as well as
the assumptions on which the mineral reserves for Barrick are
reported (on an attributable basis), are set out in Barrick’s Q4
2019 Report issued on February 12, 2020.
Estimates as of December 31, 2018, unless
otherwise noted are proven reserves of 344.6 million tonnes
grading 2.15 g/t, representing 23.9 million ounces of gold,
and 169.2 million tonnes grading 0.59%, representing 2.195 billion
pounds of copper. Probable reserves of 0.9 billion tonnes grading
1.33 g/t, representing 38.4 million ounces of gold, and 452.7
million tonnes grading 0.55%, representing 5.454 billion pounds of
copper. Complete 2018 mineral reserve and resource data, including
tonnes, grades, and ounces, can be found on pages 33-45 of
Barrick’s Annual Information Form/Form 40-F for the year
ended December 31, 2018 on file with Canadian provincial securities
regulatory authorities and the U.S. Securities and Exchange
Commission.
Endnote 13For additional detail
regarding Pueblo Viejo, see the Technical Report on the Pueblo
Viejo mine, Sanchez Ramirez Province, Dominican Republic, dated
March 19, 2018, and filed on SEDAR at www.sedar.com and EDGAR at
www.sec.gov on March 23, 2018.
Endnote 14Estimated in
accordance with National Instrument 43-101 as required by Canadian
securities regulatory authorities. Estimates for Pueblo Viejo are
as of December 31, 2019 (100% basis). Proven reserves of 16.83
million tonnes grading 2.68 g/t, representing 1.45 million ounces
of gold. Probable reserves of 102.29 million tonnes grading 2.46
g/t, representing 8.08 million ounces of gold. Measured resources
of 133.46 million tonnes grading 2.41 g/t, representing 10.35
million ounces of gold. Indicated resources of 206.77 million
tonnes grading 2.25 g/t, representing 14.96 million ounces of gold.
Inferred resources of 54.27 million tonnes grading 2.10 g/t,
representing 3.67 million ounces of gold. Complete mineral reserve
and resource data, including tonnes, grades, and ounces, as well as
the assumptions on which the mineral reserves for Barrick are
reported (on an attributable basis), are set out in Barrick’s Q4
2019 Report issued on February 12, 2020.
Endnote 15On a 100% basis. Our
2019 attributable gold production forecast (45%) was 330 - 350
thousand ounces for Kibali.
Endnote 16On a 100% basis. Our
2019 attributable production forecast (80%) was 520 - 570 thousand
ounces for Loulo-Gounkoto.
Endnote 17These five operations
are part of Nevada Gold Mines from July 1, 2019. Amounts
include Cortez (100%), Goldstrike (100%) and Turquoise Ridge (75%),
also known collectively as Barrick Nevada, from January 1, 2019 to
June 30, 2019, and Cortez, Carlin (which includes Goldstrike),
Turquoise Ridge (including Twin Creeks), Phoenix and Long Canyon on
a 61.5% basis from July 1, 2019 onwards as a result of the
formation of Nevada Gold Mines with Newmont on July 1, 2019.
Endnote 18Includes our 60%
share of South Arturo from January 1, 2019 to June 30, 2019 and
36.9% from July 1, 2019 onwards as a result of the formation of
Nevada Gold Mines with Newmont on July 1, 2019.
Endnote 19Formerly known as
Acacia Mining plc. On September 17, 2019, Barrick acquired
all of the shares of Acacia it did not own. Operating results
are included at 100% from October 1, 2019 (notwithstanding the
completion of the Acacia transaction on September 17, 2019, we
consolidated our interest in Acacia and recorded a non-controlling
interest of 36.1% in the income statement for the entirety of the
third quarter of 2019 as a matter of convenience) up until the
GoT’s 16% free-carried interest is made effective, which is
expected to be January 1, 2020, and on an 84% basis
thereafter. As the GoT’s 16% free-carried interest is
expected to be made effective in January 2020, our 2020 outlook
represents our 84% share.
Endnote 20Also includes Lagunas
Norte, Golden Sunlight, and Morila (40%) and excludes Pierina which
is mining incidental ounces as it enters closure. Due to the
planned ramp down of operations, we have ceased to include
production or non-GAAP cost metrics for Golden Sunlight or Morila
after the second quarter and Lagunas Norte after the third
quarter.
Endnote 21Total cash costs and
all-in sustaining costs per ounce include costs allocated to
non-operating sites.
Endnote 22Operating division
guidance ranges reflect expectations at each individual operating
division, and may not add up to the company-wide guidance range
total. The company-wide 2019 results and guidance ranges exclude
Pierina, which is mining incidental ounces as it enters closure,
and Golden Sunlight and Morila after the second quarter of 2019 and
Lagunas Norte after the third quarter of 2019 due to the planned
ramp down of operations.
Endnote 23Includes corporate
administration costs.
Endnote 24Attributable capital
expenditures are presented on the same basis as guidance, which
includes our 61.5% share of Nevada Gold Mines, our 60% share of
Pueblo Viejo, our 80% share of Loulo-Gounkoto, our 89.7% share of
Tongon, our 84% share of North Mara, Bulyanhulu and Buzwagi and our
50% share of Zaldívar and Jabal Sayid. As the GoT’s 16%
free-carried interest is expected to be made effective as of
January 1, 2020, our 2020 outlook represents our 84% share of North
Mara, Bulyanhulu and Buzwagi.
Endnote 25EBITDA is a non-GAAP
financial measure, which excludes the following from net earnings:
income tax expense; finance costs; finance income; and
depreciation. Management believes that EBITDA is a valuable
indicator of our ability to generate liquidity by producing
operating cash flow to fund working capital needs, service debt
obligations, and fund capital expenditures. Management uses EBITDA
for this purpose. Adjusted EBITDA removes the effect of
impairment charges; acquisition/disposition gains/losses; foreign
currency translation gains/losses; other expense adjustments;
unrealized gains on non-hedge derivative instruments; and the
impact of the income tax expense, finance costs, finance income and
depreciation incurred in our equity method accounted
investments. We believe these items provide a greater level
of consistency with the adjusting items included in our Adjusted
Net Earnings reconciliation, with the exception that these amounts
are adjusted to remove any impact on finance costs/income, income
tax expense and/or depreciation as they do not affect EBITDA.
We believe this additional information will assist analysts,
investors and other stakeholders of Barrick in better understanding
our ability to generate liquidity from our full business, including
equity method investments, by excluding these amounts from the
calculation as they are not indicative of the performance of our
core mining business and not necessarily reflective of the
underlying operating results for the periods presented. EBITDA and
adjusted EBITDA are intended to provide additional information only
and do not have any standardized meaning under IFRS and may not be
comparable to similar measures of performance presented by other
companies. They should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. Further details on these non-GAAP measures are provided in
the MD&A accompanying Barrick’s financial statements filed from
time to time on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
Reconciliation of Net Earnings to EBITDA
and Adjusted EBITDA(Unaudited)
($
millions) |
For the three months ended |
For the years ended |
|
12/31/19 |
9/30/19 |
12/31/19 |
12/31/18 |
12/31/17 |
Net earnings (loss) |
1,776 |
|
2,435 |
|
4,574 |
|
(1,435 |
) |
1,516 |
|
Income tax
expense |
784 |
|
791 |
|
1,783 |
|
1,198 |
|
1,231 |
|
Finance costs,
neta |
90 |
|
106 |
|
394 |
|
458 |
|
624 |
|
Depreciation |
572 |
|
559 |
|
2,032 |
|
1,457 |
|
1,647 |
|
EBITDA |
3,222 |
|
3,891 |
|
8,783 |
|
1,678 |
|
5,018 |
|
Impairment charges (reversals)
of long-lived assetsb |
(566 |
) |
(872 |
) |
(1,423 |
) |
900 |
|
(212 |
) |
Acquisition/disposition
(gains)/lossesc |
(414 |
) |
(1,901 |
) |
(2,327 |
) |
(68 |
) |
(911 |
) |
Foreign currency translation
(gains)/losses |
53 |
|
40 |
|
109 |
|
136 |
|
72 |
|
Other (income) expense
adjustmentsd |
(845 |
) |
53 |
|
(687 |
) |
336 |
|
51 |
|
Unrealized gains on non-hedge
derivative instruments |
0 |
|
1 |
|
0 |
|
1 |
|
(1 |
) |
Income
tax expense, net finance costsa, and depreciation from equity
investees |
112 |
|
85 |
|
378 |
|
97 |
|
98 |
|
Adjusted EBITDA |
1,562 |
|
1,297 |
|
4,833 |
|
3,080 |
|
4,115 |
|
- Finance costs exclude accretion.
- Net impairment reversals for the current year primarily relate
to non-current asset reversals at Pueblo Viejo, partially offset by
impairment charges at Pascua-Lama in the fourth quarter of
2019. This was further impacted by non-current asset
reversals at Lumwana in the third quarter of 2019. Net
impairment charges for 2018 primarily relate to non-current asset
impairments at Lagunas Norte and non-current asset and goodwill
impairments at Veladero.
- Acquisition/disposition gains for the current year primarily
relate to the gain on the sale of our 50% interest in Kalgoorlie in
the fourth quarter of 2019 and the gain on the remeasurement of
Turquoise Ridge to fair value as a result of its contribution to
Nevada Gold Mines in the third quarter of 2019.
- Other expense adjustments for the current year primarily relate
to the gain on the de-recognition of the deferred revenue liability
relating to our silver sale agreement with Wheaton Precious Metals
Corp. and the gain on a tax settlement at Lumwana, both occurring
in the fourth quarter of 2019.
FINANCIAL AND OPERATING HIGHLIGHTS
(Unaudited) |
For the three months
ended |
For the years
ended |
|
12/31/2019 |
9/30/2019 |
% Change |
12/31/19 |
12/31/18 |
% Change |
12/31/17 |
Financial
Results ($ millions) |
|
|
|
|
|
|
|
Revenues |
2,883 |
|
2,678 |
|
8 |
% |
9,717 |
|
7,243 |
|
34 |
% |
8,374 |
|
Cost of sales |
1,987 |
|
1,889 |
|
5 |
% |
6,911 |
|
5,220 |
|
32 |
% |
5,300 |
|
Net earnings (loss)a |
1,387 |
|
2,277 |
|
(39 |
)% |
3,969 |
|
(1,545 |
) |
357 |
% |
1,438 |
|
Adjusted net earningsb |
300 |
|
264 |
|
14 |
% |
902 |
|
409 |
|
121 |
% |
876 |
|
Adjusted EBITDAb |
1,562 |
|
1,297 |
|
20 |
% |
4,833 |
|
3,080 |
|
57 |
% |
4,115 |
|
Adjusted EBITDA marginc |
54 |
% |
48 |
% |
13 |
% |
50 |
% |
43 |
% |
16 |
% |
49 |
% |
Total minesite sustaining
capital expendituresd |
394 |
|
406 |
|
(3 |
)% |
1,320 |
|
968 |
|
36 |
% |
1,116 |
|
Total project capital
expendituresd |
46 |
|
96 |
|
(52 |
)% |
370 |
|
425 |
|
(13 |
)% |
280 |
|
Total consolidated capital
expendituresd,e |
446 |
|
502 |
|
(11 |
)% |
1,701 |
|
1,400 |
|
22 |
% |
1,396 |
|
Net cash provided by operating
activities |
875 |
|
1,004 |
|
(13 |
)% |
2,833 |
|
1,765 |
|
61 |
% |
2,065 |
|
Net cash provided by operating
activities marginf |
30 |
% |
37 |
% |
(19 |
)% |
29 |
% |
24 |
% |
21 |
% |
25 |
% |
Free cash flowb |
429 |
|
502 |
|
(15 |
)% |
1,132 |
|
365 |
|
210 |
% |
669 |
|
Net earnings (loss) per share
(basic and diluted) |
0.78 |
|
1.30 |
|
(40 |
)% |
2.26 |
|
(1.32 |
) |
271 |
% |
1.23 |
|
Adjusted net earnings (basic)b
per share |
0.17 |
|
0.15 |
|
13 |
% |
0.51 |
|
0.35 |
|
46 |
% |
0.75 |
|
Weighted average diluted common shares (millions of shares) |
1,778 |
|
1,756 |
|
1 |
% |
1,758 |
|
1,167 |
|
51 |
% |
1,166 |
|
Operating
Results |
|
|
|
|
|
|
|
Gold production (thousands of
ounces)g |
1,439 |
|
1,306 |
|
10 |
% |
5,465 |
|
4,527 |
|
21 |
% |
5,323 |
|
Gold sold (thousands of
ounces)g |
1,413 |
|
1,318 |
|
7 |
% |
5,467 |
|
4,544 |
|
20 |
% |
5,302 |
|
Market gold price ($/oz) |
1,481 |
|
1,472 |
|
1 |
% |
1,393 |
|
1,268 |
|
10 |
% |
1,257 |
|
Realized gold priceb,g
($/oz) |
1,483 |
|
1,476 |
|
0 |
% |
1,396 |
|
1,270 |
|
10 |
% |
1,258 |
|
Gold cost of sales (Barrick’s
share)g,h ($/oz) |
1,046 |
|
1,065 |
|
(2 |
)% |
1,005 |
|
892 |
|
13 |
% |
794 |
|
Gold total cash costsb,g
($/oz) |
692 |
|
710 |
|
(3 |
)% |
671 |
|
588 |
|
14 |
% |
526 |
|
Gold all-in sustaining costsb,g
($/oz) |
923 |
|
984 |
|
(6 |
)% |
894 |
|
806 |
|
11 |
% |
750 |
|
Copper production (millions of
pounds)i |
117 |
|
112 |
|
4 |
% |
432 |
|
383 |
|
13 |
% |
413 |
|
Copper sold (millions of
pounds)i |
91 |
|
65 |
|
40 |
% |
355 |
|
382 |
|
(7 |
)% |
405 |
|
Market copper price ($/lb) |
2.67 |
|
2.63 |
|
2 |
% |
2.72 |
|
2.96 |
|
(8 |
)% |
2.80 |
|
Realized copper priceb,i
($/lb) |
2.76 |
|
2.55 |
|
8 |
% |
2.77 |
|
2.88 |
|
(4 |
)% |
2.95 |
|
Copper cost of sales (Barrick’s
share)i,j ($/lb) |
2.26 |
|
2.00 |
|
13 |
% |
2.14 |
|
2.40 |
|
(11 |
)% |
1.77 |
|
Copper C1 cash costsb,i
($/lb) |
1.90 |
|
1.62 |
|
17 |
% |
1.69 |
|
1.97 |
|
(14 |
)% |
1.66 |
|
Copper all-in sustaining costsb,i ($/lb) |
2.82 |
|
2.58 |
|
9 |
% |
2.52 |
|
2.82 |
|
(11 |
)% |
2.34 |
|
|
As at 12/31/19 |
As at 9/30/19 |
% Change |
As at 12/31/18 |
% Change |
As at 12/31/17 |
|
Financial
Position ($ millions) |
|
|
|
|
|
|
|
Debt (current and long-term) |
5,536 |
|
5,560 |
|
0 |
% |
5,738 |
|
(4 |
)% |
6,423 |
|
|
Cash and equivalents |
3,314 |
|
2,405 |
|
38 |
% |
1,571 |
|
111 |
% |
2,234 |
|
|
Debt, net of cash |
2,222 |
|
3,155 |
|
(30 |
)% |
4,167 |
|
(47 |
)% |
4,189 |
|
|
- Net earnings (loss) represents net
earnings (loss) attributable to the equity holders of the
Company.
- Adjusted net earnings, adjusted
EBITDA, free cash flow, adjusted net earnings per share, realized
gold price, all-in sustaining costs, total cash costs, C1 cash
costs and realized copper price are non-GAAP financial performance
measures with no standardized meaning under IFRS and therefore may
not be comparable to similar measures presented by other issuers.
For further information and a detailed reconciliation of each
non-GAAP measure to the most directly comparable IFRS measure,
please see pages 88 to 110 of our fourth quarter MD&A.
- Represents adjusted EBITDA divided
by revenue.
- Amounts presented on a consolidated
cash basis. Project capital expenditures are included in our
calculation of all-in costs, but not included in our calculation of
all-in sustaining costs.
- Total consolidated capital
expenditures also includes capitalized interest.
- Represents net cash provided by
operating activities divided by revenue.
- Includes Tanzania on a 63.9% basis
until September 30, 2019 (notwithstanding the completion of the
Acacia transaction on September 17, 2019, we consolidated our
interest in Acacia and recorded a non-controlling interest of 36.1%
in the income statement for the entirety of the third quarter of
2019 as a matter of convenience), Pueblo Viejo on a 60% basis,
South Arturo on a 60% basis (36.9% from July 1, 2019 onwards as a
result of its contribution to Nevada Gold Mines), and Veladero on a
50% basis, which reflects our equity share of production and
sales. Also includes Loulo-Gounkoto on an 80% basis, Kibali
on a 45% basis, Tongon on an 89.7% basis and Morila on a 40% basis,
which reflects our equity share of production and sales, commencing
January 1, 2019, the effective date of the Merger. Also
removes the non-controlling interest of 38.5% Nevada Gold Mines
from July 1, 2019 onwards.
- Gold cost of sales (Barrick’s
share) is calculated as cost of sales - gold on an attributable
basis (excluding sites in care and maintenance) divided by ounces
sold.
- Amounts reflect production and
sales from Jabal Sayid and Zaldívar on a 50% basis, which reflects
our equity share of production, and Lumwana.
- Copper cost of sales (Barrick’s
share) is calculated as cost of sales - copper plus our equity
share of cost of sales attributable to Zaldívar and Jabal Sayid
divided by pounds sold.
Production and Cost Summary -
Gold
(Unaudited) |
For the three months
ended |
For the years ended |
|
12/31/2019 |
9/30/2019 |
% Change |
12/31/2019 |
12/31/2018 |
% Change |
12/31/2017 |
Nevada Gold Mines (61.5%)a |
|
|
|
|
|
|
|
Gold produced (000s oz) |
585 |
|
535 |
|
9 |
% |
2,218 |
|
2,368 |
|
(6 |
)% |
2,523 |
|
Cost of sales ($/oz) |
1,038 |
|
1,027 |
|
1 |
% |
924 |
|
814 |
|
13 |
% |
786 |
|
Total cash costs ($/oz)b |
711 |
|
693 |
|
3 |
% |
634 |
|
526 |
|
20 |
% |
467 |
|
All-in sustaining costs ($/oz)b |
944 |
|
946 |
|
0 |
% |
828 |
|
664 |
|
25 |
% |
634 |
|
Cortez (61.5%)c |
|
|
|
|
|
|
|
Gold produced (000s oz) |
133 |
|
126 |
|
6 |
% |
801 |
|
1,265 |
|
(37 |
)% |
1,447 |
|
Cost of sales ($/oz) |
945 |
|
829 |
|
14 |
% |
762 |
|
659 |
|
16 |
% |
657 |
|
Total cash costs ($/oz)b |
681 |
|
570 |
|
19 |
% |
515 |
|
351 |
|
47 |
% |
300 |
|
All-in sustaining costs ($/oz)b |
1,012 |
|
772 |
|
31 |
% |
651 |
|
430 |
|
51 |
% |
380 |
|
Carlin (61.5%)d |
|
|
|
|
|
|
|
Gold produced (000s oz) |
276 |
|
278 |
|
(1 |
)% |
968 |
|
835 |
|
16 |
% |
780 |
|
Cost of sales ($/oz) |
975 |
|
1,007 |
|
(3 |
)% |
1,004 |
|
1,054 |
|
(5 |
)% |
1,024 |
|
Total cash costs ($/oz)b |
766 |
|
775 |
|
(1 |
)% |
746 |
|
740 |
|
1 |
% |
721 |
|
All-in sustaining costs ($/oz)b |
965 |
|
1,014 |
|
(5 |
)% |
984 |
|
983 |
|
0 |
% |
1,045 |
|
Turquoise Ridge (61.5%)e |
|
|
|
|
|
|
|
Gold produced (000s oz) |
111 |
|
82 |
|
35 |
% |
335 |
|
268 |
|
25 |
% |
211 |
|
Cost of sales ($/oz) |
971 |
|
1,077 |
|
(10 |
)% |
846 |
|
783 |
|
8 |
% |
715 |
|
Total cash costs ($/oz)b |
625 |
|
622 |
|
0 |
% |
585 |
|
678 |
|
(14 |
)% |
589 |
|
All-in sustaining costs ($/oz)b |
800 |
|
840 |
|
(5 |
)% |
732 |
|
756 |
|
(3 |
)% |
733 |
|
Phoenix (61.5%)f |
|
|
|
|
|
|
|
Gold produced (000s oz) |
31 |
|
25 |
|
24 |
% |
56 |
|
|
|
|
Cost of sales ($/oz) |
2,025 |
|
2,186 |
|
(7 |
)% |
2,093 |
|
|
|
|
Total cash costs ($/oz)b |
902 |
|
1,010 |
|
(11 |
)% |
947 |
|
|
|
|
All-in sustaining costs ($/oz)b |
1,034 |
|
1,622 |
|
(36 |
)% |
1,282 |
|
|
|
|
Long Canyon (61.5%)f |
|
|
|
|
|
|
|
Gold produced (000s oz) |
34 |
|
24 |
|
42 |
% |
58 |
|
|
|
|
Cost of sales ($/oz) |
1,026 |
|
1,170 |
|
(12 |
)% |
1,088 |
|
|
|
|
Total cash costs ($/oz)b |
317 |
|
353 |
|
(10 |
)% |
333 |
|
|
|
|
All-in sustaining costs ($/oz)b |
657 |
|
714 |
|
(8 |
)% |
681 |
|
|
|
|
Pueblo Viejo (60%) |
|
|
|
|
|
|
|
Gold produced (000s oz) |
179 |
|
139 |
|
29 |
% |
590 |
|
581 |
|
2 |
% |
650 |
|
Cost of sales ($/oz) |
660 |
|
807 |
|
(18 |
)% |
747 |
|
750 |
|
0 |
% |
699 |
|
Total cash costs ($/oz)b |
422 |
|
504 |
|
(16 |
)% |
471 |
|
465 |
|
1 |
% |
405 |
|
All-in sustaining costs ($/oz)b |
517 |
|
631 |
|
(18 |
)% |
592 |
|
623 |
|
(5 |
)% |
525 |
|
Loulo-Gounkoto (80%)g |
|
|
|
|
|
|
|
Gold produced (000s oz) |
144 |
|
153 |
|
(6 |
)% |
572 |
|
|
|
|
Cost of sales ($/oz) |
1,037 |
|
1,018 |
|
2 |
% |
1,044 |
|
|
|
|
Total cash costs ($/oz)b |
631 |
|
630 |
|
0 |
% |
634 |
|
|
|
|
All-in sustaining costs ($/oz)b |
917 |
|
966 |
|
(5 |
)% |
886 |
|
|
|
|
Kibali (45%)g |
|
|
|
|
|
|
|
Gold produced (000s oz) |
87 |
|
91 |
|
(4 |
)% |
366 |
|
|
|
|
Cost of sales ($/oz) |
1,205 |
|
1,187 |
|
2 |
% |
1,111 |
|
|
|
|
Total cash costs ($/oz)b |
608 |
|
554 |
|
10 |
% |
568 |
|
|
|
|
All-in sustaining costs ($/oz)b |
740 |
|
703 |
|
5 |
% |
693 |
|
|
|
|
Kalgoorlie (50%)h |
|
|
|
|
|
|
|
Gold produced (000s oz) |
36 |
|
58 |
|
(38 |
)% |
206 |
|
314 |
|
(34 |
)% |
368 |
|
Cost of sales ($/oz) |
1,127 |
|
1,037 |
|
9 |
% |
1,062 |
|
899 |
|
18 |
% |
806 |
|
Total cash costs ($/oz)b |
940 |
|
856 |
|
10 |
% |
873 |
|
732 |
|
19 |
% |
642 |
|
All-in sustaining costs ($/oz)b |
1,172 |
|
1,170 |
|
0 |
% |
1,183 |
|
857 |
|
38 |
% |
729 |
|
Tongon (89.7%)g |
|
|
|
|
|
|
|
Gold produced (000s oz) |
61 |
|
62 |
|
(2 |
)% |
245 |
|
|
|
|
Cost of sales ($/oz) |
1,476 |
|
1,396 |
|
6 |
% |
1,469 |
|
|
|
|
Total cash costs ($/oz)b |
803 |
|
793 |
|
1 |
% |
787 |
|
|
|
|
All-in sustaining costs ($/oz)b |
867 |
|
869 |
|
0 |
% |
844 |
|
|
|
|
Production and Cost Summary - Gold
(continued)
(Unaudited) |
For the three months
ended |
For the years
ended |
|
12/31/2019 |
9/30/2019 |
% Change |
12/31/19 |
12/31/18 |
% Change |
12/31/2017 |
Porgera (47.5%) |
|
|
|
|
|
|
|
Gold produced (000s oz) |
82 |
|
75 |
|
9 |
% |
284 |
|
204 |
|
39 |
% |
235 |
|
Cost of sales ($/oz) |
909 |
|
1,024 |
|
(11 |
)% |
994 |
|
996 |
|
0 |
% |
944 |
|
Total cash costs ($/oz)b |
757 |
|
868 |
|
(13 |
)% |
838 |
|
796 |
|
5 |
% |
781 |
|
All-in sustaining costs ($/oz)b |
894 |
|
1,053 |
|
(15 |
)% |
1,003 |
|
1,083 |
|
(7 |
)% |
993 |
|
Veladero (50%)i |
|
|
|
|
|
|
|
Gold produced (000s oz) |
71 |
|
58 |
|
22 |
% |
274 |
|
278 |
|
(1 |
)% |
432 |
|
Cost of sales ($/oz) |
1,138 |
|
1,243 |
|
(8 |
)% |
1,188 |
|
1,112 |
|
7 |
% |
897 |
|
Total cash costs ($/oz)b |
710 |
|
773 |
|
(8 |
)% |
734 |
|
629 |
|
17 |
% |
598 |
|
All-in sustaining costs ($/oz)b |
1,142 |
|
1,142 |
|
0 |
% |
1,105 |
|
1,154 |
|
(4 |
)% |
987 |
|
Hemlo |
|
|
|
|
|
|
|
Gold produced (000s oz) |
54 |
|
49 |
|
10 |
% |
213 |
|
171 |
|
25 |
% |
196 |
|
Cost of sales ($/oz) |
1,632 |
|
1,083 |
|
51 |
% |
1,137 |
|
1,157 |
|
(2 |
)% |
986 |
|
Total cash costs ($/oz)b |
1,091 |
|
953 |
|
14 |
% |
904 |
|
1,046 |
|
(14 |
)% |
841 |
|
All-in sustaining costs ($/oz)b |
1,380 |
|
1,280 |
|
8 |
% |
1,140 |
|
1,318 |
|
(14 |
)% |
1,092 |
|
North Maraj |
|
|
|
|
|
|
|
Gold produced (000s oz) |
103 |
|
29 |
|
255 |
% |
251 |
|
215 |
|
17 |
% |
207 |
|
Cost of sales ($/oz) |
1,021 |
|
907 |
|
13 |
% |
953 |
|
795 |
|
20 |
% |
683 |
|
Total cash costs ($/oz)b |
675 |
|
603 |
|
12 |
% |
646 |
|
603 |
|
7 |
% |
509 |
|
All-in sustaining costs ($/oz)b |
830 |
|
850 |
|
(2 |
)% |
802 |
|
830 |
|
(3 |
)% |
773 |
|
Buzwagij |
|
|
|
|
|
|
|
Gold produced (000s oz) |
28 |
|
18 |
|
56 |
% |
83 |
|
93 |
|
(11 |
)% |
172 |
|
Cost of sales ($/oz) |
1,235 |
|
1,292 |
|
(4 |
)% |
1,240 |
|
939 |
|
32 |
% |
643 |
|
Total cash costs ($/oz)b |
1,144 |
|
1,202 |
|
(5 |
)% |
1,156 |
|
916 |
|
26 |
% |
600 |
|
All-in sustaining costs ($/oz)b |
1,169 |
|
1,220 |
|
(4 |
)% |
1,178 |
|
947 |
|
24 |
% |
632 |
|
Bulyanhuluj |
|
|
|
|
|
|
|
Gold produced (000s oz) |
9 |
|
6 |
|
50 |
% |
27 |
|
26 |
|
4 |
% |
112 |
|
Cost of sales ($/oz) |
1,293 |
|
1,288 |
|
0 |
% |
1,207 |
|
1,231 |
|
(2 |
)% |
1,309 |
|
Total cash costs ($/oz)b |
752 |
|
729 |
|
3 |
% |
676 |
|
650 |
|
4 |
% |
848 |
|
All-in sustaining costs ($/oz)b |
909 |
|
769 |
|
18 |
% |
773 |
|
754 |
|
3 |
% |
1,319 |
|
Total Attributable to Barrickk |
|
|
|
|
|
|
|
Gold produced (000s oz) |
1,439 |
|
1,306 |
|
10 |
% |
5,465 |
|
4,527 |
|
21 |
% |
5,323 |
|
Cost of sales ($/oz)l |
1,046 |
|
1,065 |
|
(2 |
)% |
1,005 |
|
892 |
|
13 |
% |
794 |
|
Total cash costs ($/oz)b |
692 |
|
710 |
|
(3 |
)% |
671 |
|
588 |
|
14 |
% |
526 |
|
All-in sustaining costs ($/oz)b |
923 |
|
984 |
|
(6 |
)% |
894 |
|
806 |
|
11 |
% |
750 |
|
- Represents the combined results of
Cortez, Goldstrike (including our 60% share of South Arturo) and
our 75% interest in Turquoise Ridge until June 30, 2019.
Commencing July 1, 2019, the date Nevada Gold Mines was
established, the results represent our 61.5% interest in Cortez,
Carlin (including Goldstrike and 60% of South Arturo), Turquoise
Ridge (including Twin Creeks), Phoenix and Long Canyon.
- These are non-GAAP financial
performance measures with no standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. For further information and a detailed
reconciliation of each non-GAAP measure to the most directly
comparable IFRS measure, please see pages 88 to 110 of our fourth
quarter MD&A.
- On July 1, 2019, Cortez was
contributed to Nevada Gold Mines, a joint venture with
Newmont. As a result, the amounts presented are on an 100%
basis up until June 30, 2019, and on a 61.5% basis
thereafter.
- On July 1, 2019, Barrick's
Goldstrike and Newmont's Carlin were contributed to Nevada Gold
Mines and are now referred to as Carlin. As a result, the
amounts presented represent Goldstrike on a 100% basis (including
our 60% share of South Arturo) up until June 30, 2019, and the
combined results of Carlin and Goldstrike (including our 60% share
of South Arturo) on a 61.5% basis thereafter.
- Barrick owned 75% of Turquoise
Ridge through to the end of the second quarter of 2019, with our
joint venture partner, Newmont, owning the remaining 25%. Turquoise
Ridge was proportionately consolidated on the basis that the joint
venture partners that have joint control have rights to the assets
and obligations for the liabilities relating to the arrangement.
The figures presented in this table are based on our 75% interest
in Turquoise Ridge until June 30, 2019. On July 1, 2019, Barrick's
75% interest in Turquoise Ridge and Newmont's Twin Creeks and 25%
interest in Turquoise Ridge were contributed to Nevada Gold
Mines. Starting July 1, 2019, the results represent our 61.5%
share of Turquoise Ridge and Twin Creeks, now referred to as
Turquoise Ridge.
- These sites were acquired as a
result of the formation of Nevada Gold Mines on July 1, 2019.
- These sites did not form a part of
the Barrick consolidated results in 2018 and 2017 as these sites
were acquired as a result of the Merger.
- On November 28, 2019, we completed
the sale of our 50% interest in Kalgoorlie in Western Australia to
Saracen Mineral Holdings Limited for total cash consideration of
$750 million. Accordingly, these represent our 50% interest
until November 28, 2019.
- On June 30, 2017, we sold 50% of
Veladero; therefore, these represent results on a 100% basis from
January 1 to June 30, 2017 and on a 50% basis from July 1, 2017
onwards.
- Formerly known as Acacia Mining
plc. On September 17, 2019, Barrick acquired all of the
shares of Acacia it did not own. Operating results are
included at 100% from October 1, 2019 (notwithstanding the
completion of the Acacia transaction on September 17, 2019, we
consolidated our interest in Acacia and recorded a non-controlling
interest of 36.1% in the income statement for the entirety of the
third quarter of 2019 as a matter of convenience) up until the
GoT’s 16% free-carried interest is made effective, which is
expected to be January 1, 2020, and on an 84% basis
thereafter.
- With the end of mining at Golden
Sunlight and Morila in the second quarter and Lagunas Norte in the
third quarter as previously reported, we have ceased to include
production or non-GAAP cost metrics for these sites from July 1,
2019 and October 1, 2019, respectively, onwards although these
sites are included in the Total Attributable to Barrick in the
prior period comparatives.
- Cost of sales per ounce (Barrick’s
share) is calculated as cost of sales - gold on an attributable
basis (excluding sites in care and maintenance) divided by gold
equity ounces sold.
Production and Cost Summary -
Copper
(Unaudited) |
For the three months
ended |
For the years
ended |
|
12/31/2019 |
9/30/2019 |
% Change |
12/31/19 |
12/31/18 |
% Change |
12/31/17 |
Lumwana |
|
|
|
|
|
|
|
Copper production (millions lbs) |
63 |
|
65 |
|
(3 |
)% |
238 |
|
224 |
|
6 |
% |
256 |
|
Cost of sales ($/lb) |
2.22 |
|
2.04 |
|
9 |
% |
2.13 |
|
2.51 |
|
(15 |
)% |
1.57 |
|
C1 cash costs ($/lb)a |
2.10 |
|
1.83 |
|
15 |
% |
1.79 |
|
2.08 |
|
(14 |
)% |
1.66 |
|
All-in sustaining costs ($/lb)a |
3.41 |
|
3.66 |
|
(7 |
)% |
3.04 |
|
3.08 |
|
(1 |
)% |
2.35 |
|
Zaldívar
(50%) |
|
|
|
|
|
|
|
Copper production (millions lbs) |
36 |
|
32 |
|
13 |
% |
128 |
|
104 |
|
23 |
% |
114 |
|
Cost of sales ($/lb) |
2.59 |
|
2.18 |
|
19 |
% |
2.46 |
|
2.55 |
|
(4 |
)% |
2.15 |
|
C1 cash costs ($/lb)a |
1.95 |
|
1.55 |
|
26 |
% |
1.77 |
|
1.97 |
|
(10 |
)% |
1.66 |
|
All-in sustaining costs ($/lb)a |
2.56 |
|
1.91 |
|
34 |
% |
2.15 |
|
2.47 |
|
(13 |
)% |
2.21 |
|
Jabal Sayid (50%) |
|
|
|
|
|
|
|
Copper production (millions lbs) |
18 |
|
15 |
|
20 |
% |
66 |
|
55 |
|
20 |
% |
43 |
|
Cost of sales ($/lb) |
1.47 |
|
1.63 |
|
(10 |
)% |
1.53 |
|
1.73 |
|
(12 |
)% |
1.90 |
|
C1 cash costs ($/lb)a |
1.29 |
|
1.42 |
|
(9 |
)% |
1.26 |
|
1.53 |
|
(18 |
)% |
1.70 |
|
All-in sustaining costs ($/lb)a |
1.78 |
|
1.65 |
|
8 |
% |
1.51 |
|
1.92 |
|
(21 |
)% |
2.30 |
|
Total Copper |
|
|
|
|
|
|
|
Copper production (millions lbs) |
117 |
|
112 |
|
4 |
% |
432 |
|
383 |
|
13 |
% |
413 |
|
Cost of sales ($/lb)b |
2.26 |
|
2.00 |
|
13 |
% |
2.14 |
|
2.40 |
|
(11 |
)% |
1.77 |
|
C1 cash costs ($/lb)a |
1.90 |
|
1.62 |
|
17 |
% |
1.69 |
|
1.97 |
|
(14 |
)% |
1.66 |
|
All-in sustaining costs ($/lb)a |
2.82 |
|
2.58 |
|
9 |
% |
2.52 |
|
2.82 |
|
(11 |
)% |
2.34 |
|
- These are non-GAAP financial performance measures with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. For further
information and a detailed reconciliation of each non-GAAP measure
to the most directly comparable IFRS measure, please see pages 88
to 110 of our fourth quarter MD&A.
- Cost of sales per pound (Barrick’s
share) is calculated as cost of sales - copper plus our equity
share of cost of sales attributable to Zaldívar and Jabal Sayid
divided by copper pounds sold.
Consolidated Statements of
Income(Unaudited)
|
|
|
Barrick Gold
Corporation For the years ended December 31 (in millions
of United States dollars, except per share data) |
|
2019 |
|
2018 |
Revenue |
$9,717 |
|
$7,243 |
|
Costs and
expenses |
|
|
Cost of sales |
|
6,911 |
|
|
5,220 |
|
General and administrative
expenses |
|
212 |
|
|
265 |
|
Exploration, evaluation and
project expenses |
|
342 |
|
|
383 |
|
Impairment (reversals)
charges |
|
(1,423 |
) |
|
900 |
|
Loss on currency
translation |
|
109 |
|
|
136 |
|
Closed mine
rehabilitation |
|
5 |
|
|
(13 |
) |
Income from equity
investees |
|
(165 |
) |
|
(46 |
) |
Other
(income) expense |
|
(3,100 |
) |
|
90 |
|
Income before finance
items and income taxes |
|
6,826 |
|
|
308 |
|
Finance
costs, net |
|
(469 |
) |
|
(545 |
) |
Income (loss) before
income taxes |
|
6,357 |
|
|
(237 |
) |
Income
tax expense |
|
(1,783 |
) |
|
(1,198 |
) |
Net income (loss) |
$4,574 |
|
|
($1,435 |
) |
Attributable
to: |
|
|
Equity holders of Barrick Gold
Corporation |
$3,969 |
|
|
($1,545 |
) |
Non-controlling interests |
$605 |
|
$110 |
|
Earnings (loss)
per share data attributable to the equity holders of Barrick Gold
Corporation |
Net income (loss) |
|
|
Basic |
$2.26 |
|
|
($1.32 |
) |
Diluted |
$2.26 |
|
|
($1.32 |
) |
Consolidated Statements of Comprehensive
Income(Unaudited)
Barrick Gold Corporation |
|
For the
years ended December 31 (in millions of United States dollars) |
|
2019 |
|
2018 |
Net income (loss) |
$4,574 |
|
($1,435 |
) |
Other comprehensive
income (loss), net of taxes |
|
|
Items that may be
reclassified subsequently to profit or loss: |
|
|
Unrealized gains (losses) on derivatives designated as cash flow
hedges, net of tax $nil and ($12) |
|
— |
|
|
8 |
|
Realized (gains) losses on derivatives designated as cash flow
hedges, net of tax $nil and $3 |
|
— |
|
|
(2 |
) |
Currency translation adjustments, net of tax $nil and $nil |
|
(6 |
) |
|
(9 |
) |
Items that will not be
reclassified to profit or loss: |
|
|
Actuarial gain (loss) on post-employment benefit obligations, net
of tax ($3) and $nil |
|
(6 |
) |
|
(2 |
) |
Net change on equity investments, net of tax $nil and $nil |
|
48 |
|
|
16 |
|
Total other comprehensive income |
|
36 |
|
|
11 |
|
Total comprehensive income (loss) |
$4,610 |
|
|
($1,424 |
) |
Attributable
to: |
|
|
Equity holders of Barrick Gold
Corporation |
$4,005 |
|
|
($1,534 |
) |
Non-controlling interests |
$605 |
|
$110 |
|
Consolidated Statements of Cash
Flow(Unaudited)
Barrick Gold Corporation |
|
For the
years ended December 31 (in millions of United States dollars) |
|
2019 |
|
2018 |
OPERATING
ACTIVITIES |
|
|
Net income (loss) |
$4,574 |
|
($1,435 |
) |
Adjustments for the following
items: |
|
|
Depreciation |
|
2,032 |
|
|
1,457 |
|
Finance costs |
|
500 |
|
|
560 |
|
Impairment (reversals) charges |
|
(1,423 |
) |
|
900 |
|
Income tax expense |
|
1,783 |
|
|
1,198 |
|
Loss on currency translation |
|
109 |
|
|
136 |
|
Gain on sale of non-current assets |
|
(441 |
) |
|
(68 |
) |
Remeasurement of Turquoise Ridge to fair value |
|
(1,886 |
) |
|
— |
|
Change in working capital |
|
(357 |
) |
|
(173 |
) |
Other
operating activities |
|
(1,070 |
) |
|
(62 |
) |
Operating cash flows before interest and income taxes |
|
3,821 |
|
|
2,513 |
|
Interest paid |
|
(333 |
) |
|
(350 |
) |
Income taxes paid |
|
(655 |
) |
|
(398 |
) |
Net cash provided by operating activities |
|
2,833 |
|
|
1,765 |
|
INVESTING
ACTIVITIES |
|
|
Property, plant and
equipment |
|
|
Capital expenditures |
|
(1,701 |
) |
|
(1,400 |
) |
Sales proceeds |
|
41 |
|
|
70 |
|
Divestitures |
|
750 |
|
|
— |
|
Investment purchases |
|
(4 |
) |
|
(159 |
) |
Cash acquired in merger |
|
751 |
|
|
— |
|
Other
investing activities |
|
213 |
|
|
(5 |
) |
Net cash provided by (used in) investing
activities |
|
50 |
|
|
(1,494 |
) |
FINANCING
ACTIVITIES |
|
|
Lease repayments |
|
(28 |
) |
|
— |
|
Debt repayments |
|
(281 |
) |
|
(687 |
) |
Dividends |
|
(548 |
) |
|
(125 |
) |
Funding from non-controlling
interests |
|
140 |
|
|
24 |
|
Disbursements to
non-controlling interests |
|
(421 |
) |
|
(108 |
) |
Other financing activities |
|
(1 |
) |
|
(29 |
) |
Net cash used in financing activities |
|
(1,139 |
) |
|
(925 |
) |
Effect of exchange rate changes on cash and
equivalents |
|
(1 |
) |
|
(9 |
) |
Net increase (decrease) in cash
and equivalents |
|
1,743 |
|
|
(663 |
) |
Cash
and equivalents at beginning of year |
|
1,571 |
|
|
2,234 |
|
Cash and equivalents at the end of year |
$3,314 |
|
$1,571 |
|
Consolidated Balance
Sheets(Unaudited)
|
As at December 31,2019 |
As at December 31, 2018 |
|
Barrick Gold Corporation |
|
(in
millions of United States dollars) |
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and
equivalents |
$3,314 |
|
$1,571 |
|
|
Accounts receivable |
|
363 |
|
|
248 |
|
|
Inventories |
|
2,289 |
|
|
1,852 |
|
|
Other current assets |
|
565 |
|
|
307 |
|
|
Total current assets (excluding
assets classified as held-for-sale) |
|
6,531 |
|
|
3,978 |
|
|
Assets
classified as held-for-sale |
|
356 |
|
|
— |
|
|
Total current assets |
|
6,887 |
|
|
3,978 |
|
|
Non-current assets |
|
|
|
Non-current portion of
inventory |
|
2,300 |
|
|
1,696 |
|
|
Equity in
investees |
|
4,527 |
|
|
1,234 |
|
|
Property, plant and
equipment |
|
24,141 |
|
|
12,826 |
|
|
Intangible assets |
|
226 |
|
|
227 |
|
|
Goodwill |
|
4,769 |
|
|
1,176 |
|
|
Deferred income tax
assets |
|
235 |
|
|
259 |
|
|
Other assets |
|
1,307 |
|
|
1,235 |
|
|
Total assets |
$44,392 |
|
$22,631 |
|
|
LIABILITIES AND
EQUITY |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$1,190 |
|
$1,101 |
|
|
Debt |
|
375 |
|
|
43 |
|
|
Current income tax liabilities |
|
92 |
|
|
203 |
|
|
Other current liabilities |
|
622 |
|
|
321 |
|
|
Total current liabilities
(excluding liabilities classified as held-for-sale) |
|
2,279 |
|
|
1,668 |
|
|
Liabilities classified as held-for-sale |
|
— |
|
|
— |
|
|
Total current liabilities |
|
2,279 |
|
|
1,668 |
|
|
Non-current liabilities |
|
|
|
Debt |
|
5,161 |
|
|
5,695 |
|
|
Provisions |
|
3,114 |
|
|
2,904 |
|
|
Deferred income tax liabilities |
|
3,091 |
|
|
1,236 |
|
|
Other liabilities |
|
920 |
|
|
1,743 |
|
|
Total liabilities |
|
14,565 |
|
|
13,246 |
|
|
Equity |
|
|
|
Capital stock |
|
29,231 |
|
|
20,883 |
|
|
Deficit |
|
(9,722 |
) |
|
(13,453 |
) |
|
Accumulated other comprehensive
loss |
|
(122 |
) |
|
(158 |
) |
|
Other |
|
2,045 |
|
|
321 |
|
|
Total equity attributable
to Barrick Gold Corporation shareholders |
|
21,432 |
|
|
7,593 |
|
|
Non-controlling interests |
|
8,395 |
|
|
1,792 |
|
|
Total equity |
|
29,827 |
|
|
9,385 |
|
|
Contingencies and commitments |
|
|
|
Total liabilities and equity |
$44,392 |
|
$22,631 |
|
|
Consolidated Statements of Changes in
Equity(Unaudited)
Barrick
Gold Corporation |
|
Attributable to equity holders of the Company |
|
|
(in
millions of United States dollars) |
Common Shares (in thousands) |
Capital stock |
Retained earnings (deficit) |
Accumulated other comprehensive income (loss)1 |
Other2 |
Total equity attributable to shareholders |
Non-controlling interests |
Total equity |
At January 1, 2019 |
1,167,847 |
|
$ |
20,883 |
|
($13,453 |
) |
($158 |
) |
$321 |
|
$7,593 |
|
$1,792 |
|
$9,385 |
|
Net income (loss) |
— |
|
|
— |
|
3,969 |
|
|
— |
|
|
— |
|
|
3,969 |
|
|
605 |
|
|
4,574 |
|
Total other comprehensive income |
— |
|
|
— |
|
— |
|
|
36 |
|
|
— |
|
|
36 |
|
|
— |
|
|
36 |
|
Total comprehensive income (loss) |
— |
|
$— |
|
$3,969 |
|
$36 |
|
$— |
|
$4,005 |
|
$605 |
|
$4,610 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
(218 |
) |
|
— |
|
|
— |
|
|
(218 |
) |
|
— |
|
|
(218 |
) |
Merger with Randgold Resources Limited |
583,669 |
|
|
7,903 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,903 |
|
|
872 |
|
|
8,775 |
|
Nevada Gold Mines JV with Newmont Goldcorp Corporation |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,645 |
|
|
1,645 |
|
|
5,910 |
|
|
7,555 |
|
Acquisition of 36.1% of Acacia Mining plc |
24,837 |
|
|
423 |
|
|
— |
|
|
— |
|
|
70 |
|
|
493 |
|
|
(495 |
) |
|
(2 |
) |
Issued on exercise of stock options |
131 |
|
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
|
2 |
|
Funding from non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
140 |
|
|
140 |
|
Other decrease in non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(429 |
) |
|
(429 |
) |
Dividend reinvestment plan |
1,443 |
|
|
20 |
|
|
(20 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Share-based payments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
9 |
|
|
9 |
|
|
— |
|
|
9 |
|
Total transactions with owners |
610,080 |
|
$8,348 |
|
($238 |
) |
$— |
|
$1,724 |
|
$9,834 |
|
$5,998 |
|
$15,832 |
|
At December 31, 2019 |
1,777,927 |
|
$29,231 |
|
($9,722 |
) |
($122 |
) |
$2,045 |
|
$21,432 |
|
$8,395 |
|
$29,827 |
|
|
|
|
|
|
|
|
|
|
At December 31, 2017 |
1,166,577 |
|
$20,893 |
|
($11,759 |
) |
($169 |
) |
$321 |
|
$9,286 |
|
$1,781 |
|
$11,067 |
|
Impact of adopting IFRS 15 on January 1, 2018 |
— |
|
|
— |
|
|
64 |
|
|
— |
|
|
— |
|
|
64 |
|
|
— |
|
|
64 |
|
At January 1, 2018 (restated) |
1,166,577 |
|
$20,893 |
|
($11,695 |
) |
($169 |
) |
$321 |
|
$9,350 |
|
$1,781 |
|
$11,131 |
|
Net (loss) income |
— |
|
|
— |
|
|
(1,545 |
) |
|
— |
|
|
— |
|
|
(1,545 |
) |
|
110 |
|
|
(1,435 |
) |
Total other comprehensive income |
— |
|
|
— |
|
|
— |
|
|
11 |
|
|
— |
|
|
11 |
|
|
— |
|
|
11 |
|
Total comprehensive (loss) income |
— |
|
$— |
|
($1,545 |
) |
$11 |
|
$— |
|
($1,534 |
) |
$110 |
|
($1,424 |
) |
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(199 |
) |
|
— |
|
|
— |
|
|
(199 |
) |
|
— |
|
|
(199 |
) |
Issued on exercise of stock options |
20 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Funding from non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
24 |
|
|
24 |
|
Other decrease in non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(123 |
) |
|
(123 |
) |
Dividend reinvestment plan |
1,250 |
|
|
14 |
|
|
(14 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other3 |
— |
|
|
(24 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(24 |
) |
|
— |
|
|
(24 |
) |
Total transactions with owners |
1,270 |
|
($10 |
) |
($213 |
) |
$— |
|
$— |
|
($223 |
) |
($99 |
) |
($322 |
) |
At December 31, 2018 |
1,167,847 |
|
$20,883 |
|
($13,453 |
) |
($158 |
) |
$321 |
|
$7,593 |
|
$1,792 |
|
$9,385 |
|
|
|
|
|
|
|
|
|
|
1 Includes cumulative translation adjustments as
at December 31, 2019: $88 million loss (December 31, 2018: $82
million loss).
2 Includes additional paid-in capital as at
December 31, 2019: $2,007 million (December 31, 2018:
$283 million).
3 Represents a reversal of a previously
recognized deferred tax asset, which was originally recognized in
capital stock.
Corporate Office
Barrick Gold Corporation161 Bay
Street, Suite 3700Toronto, Ontario M5J 2S1Canada
Telephone: +1 416 861-9911Email:
investor@barrick.comWebsite: www.barrick.com
Shares Listed
GOLD The New York Stock
ExchangeABX The Toronto
Stock Exchange
Transfer Agents and Registrars
AST Trust Company (Canada)P.O.
Box 700, Postal Station BMontreal, Quebec H3B
3K3orAmerican Stock Transfer & Trust Company,
LLC6201 – 15 AvenueBrooklyn, New York 11219
Telephone: 1-800-387-0825Fax:
1-888-249-6189Email: inquiries@astfinancial.comWebsite:
www.astfinancial.com Enquiries
President and Chief Executive OfficerMark
Bristow+1 647 205 7694+44 788 071 1386
Senior Executive Vice-President andChief
Financial OfficerGraham Shuttleworth+1 647 262 2095+44 779 771
1338+44 1534 735 333
Investor and Media RelationsKathy du Plessis+44
20 7557 7738barrick@dpapr.com
Cautionary Statement on Forward-Looking
Information
Barrick cautions that, whether or not expressly
stated, all full year and fourth quarter figures contained in this
press release reflect our expected full year and fourth quarter
results as of the date of this press release. Actual audited full
year and fourth quarter results are subject to management’s final
review, as well as review by the Company’s independent accounting
firm, and may vary significantly from those expectations because of
a number of factors, including, without limitation, additional or
revised information, and changes in accounting standards or
policies, or in how those standards are applied. For a complete
picture of the Company’s financial performance, it will be
necessary to review all of the information in the Company’s full
year and fourth quarter financial report and related MD&A as
filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Accordingly, readers are cautioned not to rely solely on the
information contained herein.
Certain information contained or incorporated by
reference in this press release, including any information as to
our strategy, projects, plans or future financial or operating
performance, constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are
forward-looking statements. The words “believe”, “expect”,
“anticipate”, “target”, “plan”, “objective”, “assume”, “intend”,
“intention”, “project”, “goal”, “continue”, “budget”, “estimate”,
“potential”, “may”, “will”, “can”, “could”, “would” and similar
expressions identify forward-looking statements. In particular,
this press release contains forward-looking statements including,
without limitation, with respect to: Barrick’s goal to be the
world’s most valued gold mining business; our strategies and plans
with respect to environmental, sustainability and governance
issues; mine life and production rates; potential mineralization
and metal or mineral recoveries; expected replacement of mineral
reserves and resources; our future plans, growth potential,
financial strength, investments and overall strategy; our plans and
expected completion and benefits of our projects, including
automation initiatives, Pueblo Viejo plant expansion, projects at
Loulo Gounkoto (including the development of the complex’s third
underground mine, exploration program, solar power project and the
Ramjack Newtrax automation and monitoring project) and the grid
stabilizer project at Kibali; progress with respect to the
settlement of tax disputes with the Malian government and our
future working relationship as long-term partners; future
investments in community projects and contributions to local
economies; and long-term value creation for the stakeholders of
Barrick’s Tanzanian operations.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: fluctuations in the spot
and forward price of gold, copper or certain other commodities
(such as silver, diesel fuel, natural gas and electricity); the
speculative nature of mineral exploration and development; changes
in mineral production performance, exploitation and exploration
successes; risks associated with projects in the early stages of
evaluation and for which additional engineering and other analysis
is required ; the Company’s ability to successfully re-integrate
Acacia’s operations; whether benefits expected from recent
transactions are realized; disruption of supply routes
which may cause delays in construction and mining activities at
Barrick’s more remote properties; diminishing quantities or grades
of reserves; increased costs, delays, suspensions and technical
challenges associated with the construction of capital projects;
operating or technical difficulties in connection with mining or
development activities, including geotechnical challenges and
disruptions in the maintenance or provision of required
infrastructure and information technology systems; failure to
comply with environmental and health and safety laws and
regulations; timing of receipt of, or failure to comply with,
necessary permits and approvals; uncertainty whether some or
targeted investments and projects will meet the Company’s
capital allocation objectives and internal hurdle rate; the impact
of global liquidity and credit availability on the timing of cash
flows and the values of assets and liabilities based on projected
future cash flows; adverse changes in our credit ratings; the
impact of inflation; fluctuations in the currency markets; changes
in U.S. dollar interest rates; risks arising from holding
derivative instruments; changes in national and local government
legislation, taxation, controls or regulations and/or changes in
the administration of laws, policies and practices; expropriation
or nationalization of property and political or economic
developments in Canada, the United States and other jurisdictions
in which the Company or its affiliates do or may carry on business
in the future; lack of certainty with respect to foreign legal
systems, corruption and other factors that are inconsistent with
the rule of law; risks associated with illegal and artisanal
mining; the risks of operating in jurisdictions where infectious
diseases present major health care issues; damage to the Company’s
reputation due to the actual or perceived occurrence of any number
of events, including negative publicity with respect to the
Company’s handling of environmental matters or dealings with
community groups, whether true or not; the possibility that future
exploration results will not be consistent with the Company’s
expectations; risks that exploration data may be incomplete and
considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; risk of loss due to acts of
war, terrorism, sabotage and civil disturbances; litigation;
contests over title to properties, particularly title to
undeveloped properties, or over access to water, power and other
required infrastructure; business opportunities that may be
presented to, or pursued by, the Company; risks associated with the
fact that certain of the initiatives described in this press
release are still in the early stages and may not materialize; our
ability to successfully integrate acquisitions or complete
divestitures; risks associated with working with partners in
jointly controlled assets; employee relations including loss of key
employees; increased costs and physical risks, including extreme
weather events and resource shortages, related to climate change;
and availability and increased costs associated with mining inputs
and labor. In addition, there are risks and hazards associated with
the business of mineral exploration, development and mining,
including environmental hazards, industrial accidents, unusual or
unexpected formations, pressures, cave-ins, flooding and gold
bullion, copper cathode or gold or copper concentrate losses (and
the risk of inadequate insurance, or inability to obtain insurance,
to cover these risks).
Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us. Readers
are cautioned that forward-looking statements are not guarantees of
future performance. All of the forward-looking statements made in
this press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release. We disclaim any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
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