Strong Partnerships in Mali Support Robust Production Performance
27 October 2020 - 3:13AM
(NYSE:GOLD)(TSX:ABX) Barrick Gold Corporation’s Loulo-Gounkoto
complex remains on track to meet the upper end of its 2020 guidance
in the face of multiple challenges including a military coup in
Mali.
Barrick president and chief executive Mark Bristow
attributed this performance to the company’s long-established
relationships with partners in Mali and its philosophy of sharing
the benefits it creates with its local stakeholders. Over the past
24 years, Barrick and its legacy company Randgold Resources have
contributed $7.4 billion to the Malian economy in the form of
taxes, royalties, salaries and payments to local suppliers. So far
this year Loulo-Gounkoto has spent $275 million with local
contractors and suppliers.
The development of the complex’s third underground
mine at Gounkoto is on track to deliver its first ore tonnes in the
second quarter of 2021. Meanwhile, Barrick’s first solar power
plant has been commissioned and is ramping up to deliver 20MW into
the microgrid, in line with the company’s strategy of transitioning
to cleaner forms of energy.
The complex has paid dividends totalling $160
million in the year to date with Loulo paying a maiden dividend in
the quarter on the back of the mine’s convention amendment.
Barrick has agreed to sell its other operation in
Mali, Morila, to Mali Lithium with the government retaining its 20%
stake. Morila was the mine which laid the foundation for Randgold’s
success, producing almost 7 million ounces of gold over its life.
Bristow said the transaction created the opportunity for Morila’s
infrastructure and assets to be redeployed for the benefit of its
employees, surrounding communities and the country.
“We’ve always had great confidence in Mali and its
people, hence our continuing commitment to the country. It’s
gratifying to note that Mali is dealing with its political
challenges and has already returned to a civilian-led transitional
government. We look forward to being part of its future,” Bristow
said.
Enquiries:
President and CEOMark Bristow+1
647 205 7694+44 788 071 1386
COO, Africa and Middle EastWillem
Jacobs +44 779 557 5271
Investor and Media RelationsKathy du
Plessis+44 20 7557 7738Email: barrick@dpapr.com
Website: www.barrick.com
Cautionary Statement on Forward-Looking
Information
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 “meet”, “on track”, “will”,
“continue” and similar expressions identify forward-looking
statements. In particular, this press release contains
forward-looking statements including, without limitation, with
respect to: Loulo-Gounkoto meeting the upper end of its 2020
guidance; the development of the third underground mine at Gounkoto
and expected commencement of production; Barrick’s clean energy
strategy and expected benefits; the sale of Morila; and Barrick’s
commitment to Mali and local communities.
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; risk of loss due to acts of war, terrorism, sabotage and
civil disturbances; risks associated with projects in the
early stages of evaluation, and for which additional engineering
and other analysis is required; 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 all of targeted investments
and projects will meet the Company’s capital allocation objectives
and internal hurdle rate; 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 Mali and other jurisdictions in which the Company
or its affiliates do or may carry on business in the future; 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; risks
associated with new diseases, epidemics and pandemics, including
the effects and potential effects of the global Covid-19 pandemic;
litigation and legal and administrative proceedings; 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. Barrick
also cautions that its 2020 guidance may be impacted by the
unprecedented business and social disruption caused by the spread
of Covid-19. 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.
Barrick disclaims 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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