Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) reported today that
it had met its production targets for 2020, thanks to a consistent
operating performance across the group that demonstrated
management’s ability to manage the impact of the Covid-19 pandemic
and other challenges. While cost of sales per ounce was impacted,
total cash costs1 and AISC per ounce1 were contained within
guidance despite higher royalty expenses from the higher gold price
environment.
At the same time, Barrick has continued to progress major
capital projects, including the Pueblo Viejo plant expansion, the
development of the underground mine at Gounkoto, the transition to
a new heap leach phase at Veladero and the re-establishment of the
Bulyanhulu mine.
Key Performance Indicators
- Barrick delivers on 2020 gold production
guidance
- Consistent operating performance across all
quarters of the year demonstrated Barrick’s ability to manage
impact of Covid-19
- Higher gold and copper prices delivered annual operating cash
flow of $5.4 billion and record annual free cash
flow2 of $3.4 billion
- Gold total cash costs1 and AISC1 within
guidance in spite of higher royalty costs
- Strong performance from Barrick operated copper
assets with costs at low end, or below, the guidance
range
- Zero net debt achieved and credit rating
upgraded
- Net earnings per share of $1.31 for 2020; adjusted net earnings
per share3 of $1.15 for the year (up 125% on prior
year)
- Pueblo Viejo plant expansion approved and work
commences
- Attributable group reserves partially replaced
net of depletion, excluding Massawa disposition, while
resources grow as focus on geology models pays
dividends
- Continued portfolio rationalization supports
further industry consolidation
- Exploration results confirm significant orebody
extensions at most operations
- High-grade resource continues to grow at
Fourmile as attention turns to accelerating the project
into the mine plan
- Bedded down exploration focus and developing
significant exploration opportunities across the
portfolio; new frontiers opening in all regions
- Significant safety improvement in 2020: 38%
decrease in LTIFR9 and 29% decrease in TRIFR10 year-on-year
- Zero Class 1 Environmental Incidents11 for Q4; continued to
exceed 75% water reuse and recycling target for
2020
- Barrick declares $0.09 quarterly dividend per
share plus proposes $750 million capital
return
Financial and Operating Highlights
Financial Results |
Q4 2020 |
Q3 2020 |
2020 |
|
2019 |
Realized gold price4,5($ per ounce) |
1,871 |
|
1,926 |
1,778 |
|
1,396 |
Net earnings($ millions) |
685 |
|
882 |
2,324 |
|
3,969 |
Adjusted net earnings3($
millions) |
616 |
|
726 |
2,042 |
|
902 |
Net cash provided by operating
activities ($ millions) |
1,638 |
|
1,859 |
5,417 |
|
2,833 |
Free cash flow2($
millions) |
1,092 |
|
1,311 |
3,363 |
|
1,132 |
Net earnings per share
($) |
0.39 |
|
0.50 |
1.31 |
|
2.26 |
Adjusted net earnings per
share3 ($) |
0.35 |
|
0.41 |
1.15 |
|
0.51 |
Attributable capital
expenditures ($ millions) |
445 |
|
436 |
1,651 |
|
1,512 |
Debt,
net of cash ($ millions) |
(33 |
) |
417 |
(33 |
) |
2,222 |
Operating Results |
Q4 2020 |
Q3 2020 |
2020 |
|
2019 |
Gold |
Production5
(000s of ounces) |
1,206 |
|
1,155 |
4,760 |
|
5,465 |
Cost of sales (Barrick's
share)5,6 ($ per
ounce) |
1,065 |
|
1,065 |
1,056 |
|
1,005 |
Total cash
costs1,5
($ per ounce) |
692 |
|
696 |
699 |
|
671 |
All-in sustaining
costs1,5
($ per ounce) |
929 |
|
966 |
967 |
|
894 |
Copper |
|
|
|
|
Production7
(millions of pounds) |
119 |
|
103 |
457 |
|
432 |
Cost of sales (Barrick's
share)6,7 ($ per pound) |
2.06 |
|
1.97 |
2.02 |
|
2.14 |
C1 cash
costs7,8
($ per pound) |
1.61 |
|
1.45 |
1.54 |
|
1.69 |
All-in
sustaining
costs7,8
($ per pound) |
2.42 |
|
2.31 |
2.23 |
|
2.52 |
Higher gold and copper prices drove annual operating cash flow
up 91% to $5.4 billion and annual free cash flow2 to a new record
high of $3.4 billion. Net earnings per share were $1.31 for 2020
and adjusted net earnings per share3 of $1.15 was up 125% on the
previous year. The company ended the year with zero debt, net of
cash, down from a peak of $13.4 billion in 2013, and with an
improved credit rating of Baa1 from Moody’s, among the best in the
gold sector.
Barrick declared an unchanged quarterly dividend of 9 cents per
share and announced that it would propose a return of capital
distribution of approximately 42 cents per share based on the
issued and outstanding shares as of December 31, 2020. The total
distribution of $750 million is derived from the $1.5 billion in
proceeds from the company’s sale of non-core assets since 2019, and
will be effected in three equal tranches to shareholders of record
on dates to be determined in May, August and November this year.
This return of capital is subject to shareholder approval at the
Annual and Special Meeting on May 4, 2021.
Senior executive vice-president and chief financial officer
Graham Shuttleworth said this return of capital, which will provide
shareholders with a significantly enhanced return in 2021, was in
line with Barrick’s strategy of returning surplus funds to
shareholders.
President and chief executive Mark Bristow said despite 2020’s
unprecedented difficult operating conditions — which in addition to
the pandemic had included a coup in Mali, the financial meltdown in
Argentina and the Papua New Guinea government’s flirtation with
resource nationalism — the company made further progress towards
delivering on its environmental, social and governance (ESG)
commitments, and expected to improve on its rating in last year’s
industry-first scorecard, published in its sustainability
report.
“We have a detailed road map towards clearly defined emission
reduction targets, based on climate science and operational
realities. Unlike others, our plan does not rely on mine closures
and production cutbacks. Our ultimate aim is net zero emissions
with landmarked targets towards this goal, which are constantly
reviewed and updated as new emissions-reduction opportunities are
identified and realized. In addition, each operation has an
effective plan for the continued transition to cleaner, more
efficient energy sources, and our water usage performance continues
to improve,” Bristow said.
“Our long-established partnership philosophy is the beating
heart of our ESG strategy. It was invaluable in our management of
the impact of the coronavirus on our business and our people and it
also enabled us to provide much-needed support to our host
communities and governments. On an everyday level, every
operational site now has a fully functional community development
committee to deal with local issues.”
The group’s total attributable gold resources grew in 2020, net
of depletion and excluding the impact of the disposition of
Massawa, as a result of the focus on high-confidence geology models
following the merger with Randgold. Attributable gold reserves
achieved a 76% replacement of depleted ounces, excluding Massawa,
with the Africa and Middle East region once again more than
replenishing their reserves.12
Bristow said that since the merger with Randgold, the company
had made significant progress in improving its knowledge of the
legacy Barrick orebodies and in developing Life of Mine
optimizations based on updated models, operating plans and cost
forecasts.
“As our understanding of the orebodies increases, the potential
for resource conversion to reserves will grow, but we still have
some way to go to reach the replacement levels of the Africa and
Middle East region across the group,” he said.
Bristow said an in-principle agreement about the future of the
Porgera mine, which has been on care and maintenance for most of
the past year, was reached with the government of Papua New Guinea
in October 2020 and teams from both sides continue to work on the
details of a mutually acceptable settlement.
In the meantime, Porgera has been excluded from the group’s 2021
production guidance of 4.4 to 4.7 million ounces of gold but, if an
agreement is reached, will be added back in once the terms and
timing of the settlement have been finalized. The company is
expecting per ounce costs to be similar to prior year actual
results. Sustaining capital guidance includes investments
previously deferred due to the Covid-19 pandemic.
Q4 and Full Year 2020 Results
PresentationWebinar and Conference
Call
President and chief executive Mark Bristow will host a virtual
presentation on the results today at 11:00 EST/16:00 UTC, with an
interactive webinar linked to a conference call. Participants will
be able to ask questions.
Go to the webinarUS
and Canada (toll-free) 1 800 319 4610UK (toll-free) 0808 101
2791International (toll) +1 416 915 3239
The Q4 and Full Year 2020 presentation materials will be
available on Barrick’s website at www.barrick.com
and the webinar will remain on the website for later viewing.
BARRICK PROPOSES RETURN OF CAPITAL DISTRIBUTION AND
DECLARES DIVIDEND
Barrick today announced it intends to propose to
shareholders a return of capital distribution of approximately
$0.42 per share13. Barrick also
announced that its Board of Directors has declared a dividend for
the fourth quarter of 2020 of $0.09 per share, payable on March 15,
2021, to shareholders of record at the close of business on March
1, 202114.
The return of capital will be proposed to shareholders at
Barrick’s Annual and Special Meeting on May 4, 2021. This
distribution is derived from a portion of the proceeds from the
divestiture of Kalgoorlie Consolidated Gold Mines in November 2019
and from other recent dispositions made by Barrick and its
affiliates. It is proposed that the total distribution of
approximately $750 million will be effected in three equal tranches
to shareholders of record on dates to be determined in May, August
and November 2021.
Senior executive vice-president and chief financial officer
Graham Shuttleworth said that the return of capital distribution
demonstrates Barrick’s commitment to return surplus funds to
shareholders as outlined in the strategy announced at the time of
the Randgold merger in September 2018. Since that time, the
quarterly dividend has tripled, and this capital distribution
further increases returns to shareholders.
“The Board believes that the return of capital distribution is
the most efficient way to return these surplus funds to
shareholders. Based on the current number of outstanding shares,
this distribution represents approximately 14 cents per share13 for
each tranche, or approximately 42 cents per share13 in total. In
addition to the current quarterly dividend of 9 cents per share14,
this distribution will provide shareholders with a significantly
enhanced return in 2021,” said Shuttleworth.
The Board continues to review further returns to shareholders,
which will be balanced and evaluated equally across other capital
uses, including disciplined growth and debt management.
BARRICK DIGITAL MOVES FORWARD WITH KEY
INITIATIVES
With the implementation of SAP S4 HANA at Nevada Gold
Mines in 2020, Barrick laid one of the key foundations for its
updated digital roadmap. As the remaining mines and regions bring
SAP online in 2021, a major portion of the data used for
operational and financial analysis will become standardized
globally.
Having successfully implemented the financial consolidation
process into OneStream during Q4, the next building block is a
concurrent roll-out of a more agile financial planning system, also
within the new OneStream application. The full integration of these
two major platforms (SAP and OneStream) will enable much quicker
insight into the group’s key cost drivers and enormously increase
the potential for efficiency analysis, benchmarking and other
value-added reporting.
Barrick’s Global Data Platform (GDP) is at the core of our
digital strategy and drives the way in which data moves between
different systems and enables improved visibility and decision
making by managers.
“The Global Data Platform roadmap is built around visibility of
business processes and automation of data currently collected in a
more manual way,” says vice president group information technology
Nico West.
“Projects have been prioritized starting with foundational work
around the visibility of data, understanding and getting to grips
with the complexities of disparate source systems. This allows us
to work towards integration, automation and optimization using fit
for purpose technologies at each step. Our investment approach to
the GDP is to pick specific but varied pilot projects to
demonstrate the success and value that the projects will deliver to
Barrick, and grow the platform incrementally, rather than a big
bang approach.”
Barrick’s approach to delivering digital innovation is to let
subject matter experts from within the business functions drive the
programs, as opposed to a centralized innovation office. They do
this by taking responsibility for identifying opportunities,
prioritizing roadmaps and providing key business sponsorship on
selected projects. This has the benefit of ensuring tight ownership
by the business and alignment with technology teams.
By using tried and tested technology in the Azure Cloud, which
sources data from core applications, we are creating common data
models that allow the business to standardize how applications
integrate and share information, including daily, weekly and
monthly reporting.
BUILDING A MULTI-CULTURAL, MULTI-GENERATIONAL WORKFORCE
ALIGNED TO A CHANGING WORLD
To build a modern mining business at the top of the
field, we need the best people to run our portfolio of
best-in-class assets, says group human resources executive Darian
Rich.
To build a modern mining business at the top of the field, we
need the best people to run our portfolio of best-in-class assets,
says group human resources executive Darian Rich.
Barrick’s Human Capital Framework sets a clear path for
recruiting, developing, assessing and rewarding our most valuable
resource, our workforce. At the same time, we encourage employees
to think and act like owners through our share ownership
program.
This framework is anchored by our operating philosophy of
meritocracy, where employees are selected and advance on the basis
of their demonstrated abilities and merit. A modern mining business
needs people who share its vision and its values and are
entrepreneurial, agile, alive to technological and societal changes
and profit oriented. Having the best minds and leadership are
crucial to finding innovative and sustainable solutions to business
challenges and embedding a high-performance culture.
At Barrick, we are building an effective multi-cultural and
multi-generational workforce aligned to a changing world. There are
many examples of employees whose first exposure to industry was
through their hire and development at Barrick. The company has a
long tradition of hiring locally for both operational and
managerial roles: 97% of our workforce and over 80% of our
management positions are hired locally. This policy leads to
greater team effectiveness and workforce stability.
We strongly believe that a diverse workforce is a better
workforce. We have operations in 13 countries and are committed to
harnessing the talents, skills, and perspectives of a diverse
workforce in each of them. We have embarked on a drive to recruit
more young people and women. 10% of our workforce are women. We
have concentrated on placing women in our university-sponsored and
new graduate programs to increase the pool for future development
and advancement.
We develop the company’s most promising employees to help build
their leadership skills and to guide career advancement through
tailored executive and management development programs developed in
partnership with leading universities in Africa, Europe, and the
US. Barrick recently partnered with the University of Miami in
collaboration with Bacardi and Boston Scientific to design and
launch a management development curriculum for our respective LATAM
and AP leaders.
We offer training programs to develop a foundation of
operational knowledge through our Compass Development and Young
Professional Programs, which provide structured training and
mentorship opportunities for early career technical employees. We
have piloted the Barrick Greenfields Talent Program at Nevada Gold
Mines which provides new engineering graduates with meaningful
direct underground mining experience as a solid foundation for
their mining engineer careers. Our Finance for Business Leaders
program develops financial acumen across the organization to help
our people have an ownership mindset and integrate financial and
business needs into their everyday thinking. Our skills training
programs are delivered in modules and updated based on equipment
and mining methods used. We are implementing standards for
trainers; better tools to evaluate the effectiveness of the
training for new workers and assess trainees’ competencies once
they have completed the training; and opportunities for ongoing and
refresher training.
This year we strengthened our application of talent assessments
to ensure employees are receiving quality feedback about their
performance and demonstration of Barrick values. These talent
reviews served as inputs for our succession planning. The executive
team and key senior leaders held succession planning reviews to
discuss our talent capability critical to drive business priorities
across the regions and sites by ensuring we have the right skills
in the right jobs. Succession slates were compiled, individual
profiles were reviewed and follow up actions were identified as we
assess the performance and potential of our employees and build
individual development plans for our leaders and our high-potential
talent pools.
Our compensation programs are an integral part of our Human
Capital Framework. Our reward programs are designed to recognize
safe production and cost management in our operations and our
short- and long-term incentive programs reward individual and
collective performance measured against business plan objectives.
The performance measures that we have selected for our incentive
plans reflect our accountability for delivering on sustainable
value creation. A cornerstone of our compensation design is all
Barrick senior leaders receive a significant portion of their
compensation in shares tied to company performance which are held
based on market-leading requirements.
TANZANIAN ASSETS DELIVER ON PRODUCTION GUIDANCE AS
BARRICK CONTINUES TO UNLOCK VALUE
The North Mara and Bulyanhulu gold mines both produced
near the top end of their production guidance in 2020, their first
full year under Barrick’s management. Including Buzwagi, the
Tanzanian assets delivered a combined output of 462,472 ounces for
the year15.
The mines have been successfully revived, with North Mara
delivering significant improvements and underground production
restarted at Bulyanhulu. The mines, managed through the Twiga joint
venture with the Government of Tanzania, paid a maiden dividend of
$250 million in October 2020.
North Mara posted a record throughput in Q4 and Bulyanhulu
recommenced processing of underground ore during the quarter.
Bulyanhulu is scheduled to be in full production by the second half
of 2021, when its ramp-up is completed. Both mines performed
creditably on the health, safety and environmental front, with
Bulyanhulu gaining ISO 14001 certification for the first time.
Speaking at a briefing for local media at the Bulyanhulu mine,
Barrick president and chief executive Mark Bristow said the mines’
strong performance was the product of the speed and effectiveness
with which the company’s Africa and Middle East regional team was
unlocking the unrealized value of these assets, despite the
challenges presented by the Covid-19 pandemic.
“These mines are now very different businesses. North Mara’s
Life of Mine production profile has been vastly improved and
implementation of its comprehensive water management plan is on
track. Bulyanhulu’s resurrection was a particularly exceptional
achievement, considering that both its shaft and plant had to be
refurbished extensively. The new mine plan delivers a sustainable
long-term value-driven operation,” Bristow said.
“We’re optimizing our 10-year plan to make the combined North
Mara and Bulyanhulu mines the seventh Tier One16 complex in the
Barrick portfolio by bringing them into the lower half of the
industry’s cost curve. At the same time, the combined total of
Mineral Resources for North Mara and Bulyanhulu grew, net of
depletion, compared to 2019 on the back of fixing the legacy
geological models and supporting data. Subsequently, the complete
re-optimization of the mine plans for the potential Tier One
complex is underway and is expected to deliver further growth.
Concurrently, we continue to improve relations with our host
communities, securing Barrick’s social licence to operate in
Tanzania. Past grievances have been resolved and the remaining land
legacy issues are being addressed. Fully functional community
development committees have been established to focus on education,
health, water and agribusiness, and 21 agribusiness groups from 11
villages are already being supported at North Mara. Barrick also
proved its value as a partner through its tangible support for the
government’s pandemic containment campaign.”
During 2020, Barrick invested $800 million in the Tanzanian
economy in the form of taxes, permits, infrastructure development,
salaries and payments to local suppliers. In line with its
groupwide policy of employing host country nationals, the company
continued to recruit locally, with over 600 new workers employed
during the year at Bulyanhulu alone. Tanzanian nationals now make
up 96% of the mines’ total workforce.
Capital and exploration expenditures exceeded $180 million for
the year15, of which half related to growth projects, and this
investment is continuing into 2021. Bristow said Tanzania’s
large-scale mineralized systems held the potential for world-class
discoveries and, in addition to brownfields exploration designed to
increase and convert the existing mines’ resources, Barrick had
also initiated greenfields programs to generate new targets.
TONGON GETS IT RIGHT
Barrick’s Tongon mine produced a total of 284,863 ounces
of gold in 2020, at the top end of its guidance for the
year15, driven by strong plant
throughput with runtime setting a record of 95.2% in October. This
improved throughput, combined with cost-reduction initiatives, had
a positive impact on per ounce costs compared to 2019.
Addressing a group of local media at the mine, Barrick president
and chief executive Mark Bristow said Tongon had to overcome
enormous obstacles to achieve this exceptional performance. Built
and commissioned in the midst of a civil war, it has since operated
in a very unstable socio-political environment and has been
impacted by a broad range of problems, including a mill fire,
recurring technical issues and an erratic grid power supply.
“Despite all these challenges, Tongon has been consistently
profitable and in 2020 again paid a $150 million dividend to its
shareholders. It provided $1.2 million to the government to support
its campaign against Covid-19 while implementing effective
prevention measures at the mine to protect its people and the
business. And it maintained its commitment to its host community
with the installation and start-up of a number of income-generating
projects,” Bristow said.
He noted that Tongon had the best safety record in the worldwide
Barrick group. Until it suffered one lost-time injury on October
28, 2020, the mine had recorded more than 15 million lost-time
injury-free work hours over 1,120 days. There were no Class 1 or 2
environmental incidents11 during the year and the mine retained its
ISO 14001 and ISO 45001 certifications.
Continued exploration and the conversion of resources to
reserves have extended the life of the mine to 2023 and further
opportunities for replacing reserves are being pursued.
In line with Barrick’s policy of supporting local business,
Tongon spent $105 million – 66% of its total procurement budget –
with Ivorian contractors and suppliers in 2020. Since Tongon poured
its first gold in 2010, it has paid more than $1.6 billion into the
Ivorian economy in the form of taxes, infrastructure development,
salaries and payments to local suppliers.
KIBALI CONTINUES TO SHINE
The Barrick operated Kibali Joint Venture in the DRC
produced 808,134 ounces of gold in 2020, achieving the top-end of
production guidance for the
year15.
This performance was driven by its underground operation which
achieved record monthly and quarterly ore production in December
and Q4 2020. Kibali is a world leader in automated underground
mining, through systems that allow multiple autonomous machines to
operate on the same haulage and production levels, and provide
real-time visibility of all operations as well as automated control
of the ventilation fans. Leading-edge technology is also being
harnessed elsewhere at Kibali and the successful commissioning of
an on-line particle size analyzer will optimize fine grinding on
its ultrafine grind (UFG) mills.
Kibali has, since commissioning, consistently lowered its carbon
emissions thanks to its three hydropower stations and the
implementation of predictive maintenance monitoring at these plants
will further minimize downtime. Its new battery-based reactive
power support system has further reduced the mine’s reliance on
back-up thermal power.
At the same time, Kibali has retained its focus on exploration
and resource conversion and replaced the ounces depleted by mining,
thus extending the life of the mine. Its open-pit operation is set
up for a solid year with development of the access to the Sessenge
orebody completed ahead of plan. A robust open-pit component has
been included in the mine plan and will provide additional
processing flexibility to the plant over the next 10 years.
Kibali retained its ISO 45001 and ISO 14001 safety and
environmental accreditations. Effective Covid-19 prevention
protocols also remain in place. Having donated more than $2 million
to the DRC government in the form of equipment to support the
national campaign against the pandemic, Kibali is currently
partnering with the National Laboratory Institution in training
medical staff to diagnose the disease.
Barrick president and chief executive Mark Bristow says the
pandemic response has once again demonstrated the company’s value
as a partner to its host countries and communities.
“While protecting our people and our business from the impact of
Covid-19, we have continued to invest in community improvement
projects, skills development programs to deliver more Congolese
managers and technicians, and the implementation of the second
phase of the Watsa/Durba concrete road construction. Kibali’s
policy of supporting and mentoring local contractors and suppliers
has created a new economic frontier in this remote region. Last
year we spent more than $200 million with local businesses on
services such as civil construction, roadworks, plant maintenance,
trucking and catering,” he said.
Over the past 10 years, Kibali has pumped $3.4 billion into the
Congolese economy in the form of taxes, permits, infrastructure,
salaries and payments to local suppliers.
LOULO-GOUNKOTO BEATS GUIDANCE, REPLACED DEPLETED
RESERVES
Barrick’s Loulo-Gounkoto mine complex delivered
production of 680,215 ounces of gold in 2020, exceeding its full
year guidance despite Covid-19 and other
challenges15.
At the same time, it improved its safety performance, reducing
its Lost-Time Injury Frequency Rate9 by more than half compared to
2019 and achieving a lost-time injury-free year in its underground
operations. The complex retained its ISO 45001 and ISO 14001
health, safety and environmental certifications.
The underground operations have reached a world-class level of
automation, hard on the heels of pace-setter Kibali. The two
existing underground mines, Yalea and Gara, will shortly be joined
by a third when Gounkoto underground delivers its first ore tonnes
planned for the second quarter of this year.
In another major technological advance, Loulo commissioned
Barrick’s first solar power plant in the Africa and Middle East
region, delivering 20MW of capacity into the microgrid. Projects
scheduled for completion in 2021 include the commissioning of a
water treatment plant, an expansion of power generating capacity
and a powerline upgrade to support the new Gounkoto underground
mine.
The complex continued to support and develop local businesses,
spending more than $375 million with local contractors and
suppliers in 2020. Its accelerator program, designed to equip
budding businessmen and women with commercial skills, established
48 entrepreneurs and granted them credit totalling about $390,000.
Loulo-Gounkoto’s local content program was further improved by the
formation of a transport consortium which incorporates most of its
existing Malian transport providers.
In a presentation to local media and stakeholders at the Loulo
mine, Barrick president and chief executive Mark Bristow said that
thanks to continuing successful exploration, the complex’s gold
reserves were now larger than they had been 15 years ago, and
indications were that it would once more have replaced ounces
depleted by mining in 2020.
“The Loulo district lies at the heart of one of the world’s most
prolific gold regions. Over the past 15 years, this has delivered
more world-class discoveries than any other, and our extensive
exploration programs are designed not only to replenish our
reserves but to find our next Tier One16 mine,” he said.
Loulo and Gounkoto paid and declared combined dividends of $240
million for 2020. Over the past almost 24 years, Barrick and its
legacy company Randgold Resources contributed $7.7 billion to
Mali’s economy in the form of taxes, royalties, salaries and
payments to local suppliers. Its annual contribution amounts to
between 5% and 10% of the country’s GDP.
The company hosted Mali's minister of mines, Lamine Seydou
Traore, and a delegation from his department who visited the mine
and toured the operation with the Barrick team.
ESG: A CLEAR ROADMAP TOWARDS REALISTIC
TARGETS
Long before the values now known collectively as ESG
were promoted to a prime investment criterion, they were
foundational to Randgold Resources and a significant factor in its
success. Following the merger with Barrick, these principles were
also embedded in the new business.
Barrick’s group sustainability executive, Grant Beringer, says
the company’s commitment to ESG is not a form of virtue-signaling
but a key component of its strategies and plans, designed to secure
its social licence to operate, de-risk the business and leverage
opportunities.
“This commitment is driven at the operational level, not set in
a corporate office as part of a compliance exercise. This ensures
that we are making constant improvements on the ground and can
measure our progress accurately,” he says.
“Our partnership philosophy is central to Barrick’s ESG
strategy. Our senior corporate and regional executives engage
regularly with our host countries’ presidents, ministers, governors
and community leaders. Each operational site has a fully functional
community development committee, where Barrick acts not as an owner
but as a participant, and where frank and open communication is
encouraged. We also communicate regularly with our investment
partners: last year, we had more than 30 meetings with shareholders
where we kept them informed about our ESG progress and plans.”
Barrick’s sustainably profitable mines enable it to deliver on
its promise to share the value they create with all stakeholders.
They pay substantial taxes, have a locals-first employment policy,
spend billions of dollars on goods and services procured from
in-country suppliers, and last year invested more than $30 million
in Covid-19 support for their host governments and communities.
On the environmental front, Barrick recognizes that climate
change presents both risks and opportunities for the business. The
company has a clear roadmap for the reduction of greenhouse gas
emissions (GHG), which is based on climate science and operational
realities. It does not rely on mine closures, production cutbacks
or the hopeful expectation of reductions by suppliers or
governments. The ultimate aim is net zero emissions but the roadmap
has landmarked targets towards this goal based on practical and
available options. The company’s target is not static, however, and
is constantly reviewed and updated as further reduction
opportunities are identified and realized. The rapid development of
battery technology looks particularly promising.
“Every one of our operations has an effective energy conversion
management plan. During the past year, for example, Pueblo Viejo
converted its Quisqueya power plant from heavy fuel oil to natural
gas, Kibali added battery energy storage to the grid to offset the
cyclical load and reduce dependence on diesel generators in the wet
season, and Loulo-Gounkoto commissioned a 20MW solar power plant,”
says Beringer.
Future projects include Nevada Gold Mines’ conversion of its TS
Power Plant to natural gas and the construction of a 200MW solar
farm. Loulo-Gounkoto is doubling the capacity of its solar plant
and Pueblo Viejo is switching its lime kiln from diesel to natural
gas. The project to link Veladero in Argentina to the power grid in
neighboring Chile, halted by the pandemic, is underway again. The
Chilean grid has the largest renewable power component in the
world.
“Transitioning to cleaner, more efficient energy sources is not
only the right thing to do environmentally – power is the biggest
cost factor in mining, so this also makes commercial sense,” says
Beringer. And so our focus is not only about reducing the GHG
emissions at our current operations but it’s about tracking and
embracing new technology and innovation to ensure the new mines we
build in the future are designed to be industry leading when it
comes to power and other ESG measures.
BARRICK’S FIT-FOR-PURPOSE LEGAL TEAM
A global company with many moving parts needs a legal
team with world-class expertise as well as an in-depth knowledge of
the business and the jurisdictions in which it
operates.
Following the merger, Barrick implemented a lean and
fit-for-purpose legal management model capable of ensuring that the
company moves forward successfully in an increasingly complex
environment.
General counsel Rich Haddock’s small office is complemented by
strong legal managers in each region. Each manager sources the best
external legal advisors and integrates these outside resources into
the internal teams. In addition to decades of experience, many of
Barrick’s lawyers also have training or experience as geologists,
mining engineers and environmental professionals.
The legal team is engaged at all levels of the business and at
an early stage of all processes. It is deeply involved in corporate
transactions such as the completion of the Nevada Gold Mines joint
venture and the partnership with the government of Tanzania. It
also plays a key part in operational matters, including permitting,
human resources and labor relations, title and land management, and
compliance.
The team has developed a deep expertise in dealing with resource
nationalism, having worked in diverse jurisdictions to achieve
successful outcomes, and is currently closely involved in the
Porgera special mining lease negotiations. It is also playing a key
part in resolving Barrick’s remaining legacy issues.
More generally, it follows trends and changes of laws and
policies in the mining sector, positioning Barrick as the industry
leaders in discussions and negotiations with mining
authorities.
RESOURCES GROW AS FOCUS ON GEOLOGY DELIVERS
DIVIDENDS
Attributable mineral reserves reflect a 76% replacement
of depletion, with a consistent reserve grade maintained
year-on-year, after adjustment for the disposal of Massawa.
Similarly, excluding the impact of Massawa, the net reduction in
reserves year-on-year is approximately 2%. Attributable group
reserves, reported at
$1,200/oz17, stand at 1,300
million tonnes at 1.66g/t for 68 million
ounces12 of gold.
Armed with the introduction of on-site mineral resource
management and an intensified focus on geology, Barrick has spent
the two years since the Randgold merger improving knowledge of its
orebodies. At the same time, it has transferred ownership and
responsibility for the orebodies to the mines, empowering and
integrating the on-site mineral resource, geology and planning
teams.
Barrick’s mineral resource management and evaluation executive,
Rod Quick, says the company has made significant progress in
developing Life of Mine optimizations based on high-confidence
geological models as well as operating plans, ounce profiles and
cost forecasts.
“As our understanding of the orebodies increases, the potential
for sustainable resource to reserves conversion will grow, but it
will take time for the group to reach the replacement levels of the
Africa and Middle East region,” Quick said.
Total attributable group gold resources increased in 2020, net
of depletion and excluding the impact of the disposal of Massawa.
Inclusive of reserves and reported at a gold price of $1,500/oz17,
attributable measured and indicated resources stood at 3,300
million tonnes at 1.52g/t for 160 million ounces12, with a further
980 million tonnes at 1.4g/t for 43 million ounces12 in the
inferred category.
Copper mineral reserves for 2020 are calculated using a copper
price of $2.75 per pound and mineral resources are calculated at
$3.50 per pound, both rates unchanged from 2019. Attributable
measured and indicated copper resources were 25 billion pounds12 at
an average grade of 0.36%, and inferred copper resources were 2.2
billion pounds12 at an average grade of 0.2%. Attributable proven
and probable copper reserves were 13 billion pounds12 at an average
grade of 0.39%.
For further details, please refer to the Reserves and Resources
section of the MD&A in Barrick’s Q4 and year-end 2020
report.
TO BE GREAT, BE GLOBAL
The Covid-19 pandemic, perhaps more than anything else,
has demonstrated that a world-class business has to have a global
presence. It has also underlined the importance of real
partnerships between a mining company and its
stakeholders.
Three factors were key to Barrick’s effective management of the
pandemic’s impact on its business and people. The first is the
flat, decentralized and agile management structure introduced after
the Randgold merger. Our managers literally live in our businesses
and our senior corporate and regional executives visit them
regularly. This meant quick, site-specific decision-making, within
the guidance provided by the group’s global perspective, and the
sharing of experience between operations. The African mines, for
example, have dealt with several Ebola outbreaks while the North
American ones have not had to contend with a crisis like Covid-19
for generations.
Second is our partnership philosophy. Barrick is a trusted ally
to its host countries and communities, bonded to them in mutually
rewarding relationships built up over years. This enabled us to
work closely with them in devising and implementing their own
pandemic containment campaigns. This cooperation included financial
support as well as the provision of testing facilities and
isolation centers and participation in Covid-19 crises
committees.
The third is our demographic profile, which is dominated by host
country nationals as a consequence of our robust policy of
employing, training and promoting them. Their deep identification
and familiarity with local conditions, cultures and creeds, is
always invaluable to the business, but never more so than in a
crisis.
“By being global, we diversify our risk and we leverage our
experience across a range of jurisdictions to navigate dynamic
operational environments,” says Catherine Raw, Barrick’s chief
operating officer for the North America region.
“The depth of our local talent; the independence, agility and
innovation of our operational leaders; and our commitment to being
a good corporate citizen and a welcome neighbor – these have
combined to ensure that we are delivering on our promises,
progressing our strategy and adding value for all our stakeholders.
To be great is to be global.”
Appendix 1
2021 Operating and Capital Expenditure
Guidance
GOLD PRODUCTION AND COSTS |
|
2021 forecast attributable production (000s ozs) |
2021 forecast cost of sales6 ($/oz) |
2021 forecast total cash costs1 ($/oz) |
2021 forecast all-in sustaining costs1 ($/oz) |
Carlin (61.5%)18 |
940 - 1,000 |
920 - 970 |
740 - 790 |
1,050 - 1,100 |
Cortez (61.5%) |
500 - 550 |
1,000 - 1,050 |
700 - 750 |
940 - 990 |
Turquoise Ridge (61.5%) |
390 - 440 |
950 - 1,000 |
620 - 670 |
810 - 860 |
Phoenix (61.5%) |
100 - 120 |
1,800 - 1,850 |
725 - 775 |
970 - 1,020 |
Long Canyon (61.5%) |
140 - 160 |
800 - 850 |
180 - 230 |
240 - 290 |
Nevada Gold Mines (61.5%) |
2,100 - 2,250 |
980 - 1,030 |
660 - 710 |
910 - 960 |
Hemlo |
200 - 220 |
1,200 - 1,250 |
950 - 1,000 |
1,280 - 1,330 |
North America |
2,300 - 2,450 |
990 - 1,040 |
690 - 740 |
940 - 990 |
|
|
|
|
|
Pueblo Viejo (60%) |
470 - 510 |
880 - 930 |
520 - 570 |
760 - 810 |
Veladero (50%) |
130 - 150 |
1,510 - 1,560 |
820 - 870 |
1,720 - 1,770 |
Porgera (47.5%)19 |
— |
— |
— |
— |
Latin America & Asia Pacific |
600 - 660 |
1,050 - 1,100 |
600 - 650 |
1,000 - 1,050 |
|
|
|
|
|
Loulo-Gounkoto (80%) |
510 - 560 |
980 - 1,030 |
630 - 680 |
930 - 980 |
Kibali (45%) |
350 - 380 |
990 - 1,040 |
590 - 640 |
800 - 850 |
North Mara |
240 - 270 |
970 - 1,020 |
740 - 790 |
960 - 1,010 |
Tongon (89.7%) |
180 - 200 |
1,470 - 1,520 |
1,000 - 1,050 |
1,140 - 1,190 |
Bulyanhulu |
170 - 200 |
980 - 1,030 |
580 - 630 |
810 - 860 |
Buzwagi |
30 - 40 |
1,360 - 1,410 |
1,250 - 1,300 |
1,230 - 1,280 |
Africa & Middle East |
1,500 - 1,600 |
1,050 - 1,100 |
690 - 740 |
920 - 970 |
|
|
|
|
|
Total Attributable to
Barrick20,21,22 |
4,400 - 4,700 |
1,020 - 1,070 |
680 - 730 |
970 - 1,020 |
|
|
|
|
|
COPPER PRODUCTION AND COSTS |
|
2021 forecast attributable production (M lbs) |
2021 forecast cost of sales6 ($/lb) |
2021 forecast C1 cash costs8 ($/lb) |
2021 forecast all-in sustaining costs8 ($/lb) |
Lumwana |
250 - 280 |
1.85 - 2.05 |
1.45 - 1.65 |
2.25 - 2.45 |
Zaldívar (50%) |
90 - 110 |
2.30 - 2.50 |
1.65 - 1.85 |
1.90 - 2.10 |
Jabal Sayid (50%) |
70 - 80 |
1.40 - 1.60 |
1.10 - 1.30 |
1.30 - 1.50 |
Total Copper22 |
410 - 460 |
1.90 - 2.10 |
1.40 - 1.60 |
2.00 - 2.20 |
|
|
|
|
|
ATTRIBUTABLE CAPITAL EXPENDITURES |
|
|
|
|
(millions) |
|
|
Attributable Minesite Sustaining |
1,250 - 1,450 |
|
|
Attributable Project |
550 - 650 |
|
|
Total
Attributable Capital Expenditures23 |
1,800 - 2,100 |
|
|
2021 OUTLOOK ASSUMPTIONS AND ECONOMIC
SENSITIVITY ANALYSIS
|
2021 guidance assumption |
Hypothetical change |
Impact on EBITDA24 (millions) |
Impact on TCC, C1 cash costs and AISC1,8 |
Gold price sensitivity |
$1,700/oz |
+/- $100/oz |
+/- $620 |
+/-$4/oz |
Copper
price sensitivity |
$2.75/lb |
+/- $0.25/lb |
+/- $60 |
+/- $0.01/lb |
Appendix 2Production
and Cost Summary - Gold
|
For the three months ended |
For the years ended |
|
12/31/20 |
|
9/30/2020 |
|
Change |
|
12/31/20 |
|
12/31/2019 |
|
Change |
|
Nevada Gold Mines (61.5%)a |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
546 |
|
538 |
|
1 |
% |
2,131 |
|
2,218 |
|
(4 |
%) |
Gold produced (000s oz 100% basis) |
885 |
|
875 |
|
1 |
% |
3,467 |
|
2,967 |
|
17 |
% |
Cost of sales ($/oz) |
1,007 |
|
1,060 |
|
(5 |
%) |
1,029 |
|
924 |
|
11 |
% |
Total cash costs ($/oz)b |
667 |
|
723 |
|
(8 |
%) |
702 |
|
634 |
|
11 |
% |
All-in sustaining costs ($/oz)b |
873 |
|
956 |
|
(9 |
%) |
941 |
|
828 |
|
14 |
% |
Carlin (61.5%)c |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
260 |
|
276 |
|
(6 |
%) |
1,024 |
|
968 |
|
6 |
% |
Gold produced (000s oz 100% basis) |
422 |
|
448 |
|
(6 |
%) |
1,665 |
|
1,315 |
|
27 |
% |
Cost of sales ($/oz) |
917 |
|
985 |
|
(7 |
%) |
976 |
|
1,004 |
|
(3 |
%) |
Total cash costs ($/oz)b |
740 |
|
800 |
|
(8 |
%) |
790 |
|
746 |
|
6 |
% |
All-in sustaining costs ($/oz)b |
1,005 |
|
1,036 |
|
(3 |
%) |
1,041 |
|
984 |
|
6 |
% |
Cortez (61.5%)d |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
118 |
|
113 |
|
4 |
% |
491 |
|
801 |
|
(39 |
%) |
Gold produced (000s oz 100% basis) |
191 |
|
184 |
|
4 |
% |
799 |
|
963 |
|
(17 |
%) |
Cost of sales ($/oz) |
1,043 |
|
1,060 |
|
(2 |
%) |
957 |
|
762 |
|
26 |
% |
Total cash costs ($/oz)b |
738 |
|
763 |
|
(3 |
%) |
678 |
|
515 |
|
32 |
% |
All-in sustaining costs ($/oz)b |
906 |
|
1,133 |
|
(20 |
%) |
998 |
|
651 |
|
53 |
% |
Turquoise Ridge (61.5%)e |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
91 |
|
76 |
|
20 |
% |
330 |
|
335 |
|
(2 |
%) |
Gold produced (000s oz 100% basis) |
147 |
|
124 |
|
20 |
% |
537 |
|
504 |
|
7 |
% |
Cost of sales ($/oz) |
1,064 |
|
1,097 |
|
(3 |
%) |
1,064 |
|
846 |
|
26 |
% |
Total cash costs ($/oz)b |
687 |
|
745 |
|
(8 |
%) |
711 |
|
585 |
|
22 |
% |
All-in sustaining costs ($/oz)b |
757 |
|
805 |
|
(6 |
%) |
798 |
|
732 |
|
9 |
% |
Phoenix (61.5%)f |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
26 |
|
30 |
|
(13 |
%) |
126 |
|
56 |
|
125 |
% |
Gold produced (000s oz 100% basis) |
42 |
|
49 |
|
(13 |
%) |
205 |
|
91 |
|
125 |
% |
Cost of sales ($/oz) |
2,054 |
|
1,773 |
|
16 |
% |
1,772 |
|
2,093 |
|
(15 |
%) |
Total cash costs ($/oz)b |
590 |
|
520 |
|
13 |
% |
649 |
|
947 |
|
(31 |
%) |
All-in sustaining costs ($/oz)b |
670 |
|
659 |
|
2 |
% |
814 |
|
1,282 |
|
(37 |
%) |
Long Canyon (61.5%)f |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
51 |
|
43 |
|
19 |
% |
160 |
|
58 |
|
176 |
% |
Gold produced (000s oz 100% basis) |
83 |
|
70 |
|
19 |
% |
261 |
|
94 |
|
176 |
% |
Cost of sales ($/oz) |
674 |
|
877 |
|
(23 |
%) |
869 |
|
1,088 |
|
(20 |
%) |
Total cash costs ($/oz)b |
145 |
|
212 |
|
(32 |
%) |
236 |
|
333 |
|
(29 |
%) |
All-in sustaining costs ($/oz)b |
324 |
|
384 |
|
(16 |
%) |
405 |
|
681 |
|
(41 |
%) |
Pueblo Viejo (60%) |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
159 |
|
129 |
|
23 |
% |
542 |
|
590 |
|
(8 |
%) |
Gold produced (000s oz 100% basis) |
265 |
|
215 |
|
23 |
% |
903 |
|
983 |
|
(8 |
%) |
Cost of sales ($/oz) |
803 |
|
791 |
|
2 |
% |
819 |
|
747 |
|
10 |
% |
Total cash costs ($/oz)b |
493 |
|
450 |
|
9 |
% |
504 |
|
471 |
|
7 |
% |
All-in sustaining costs ($/oz)b |
689 |
|
609 |
|
13 |
% |
660 |
|
592 |
|
12 |
% |
Loulo-Gounkoto (80%) |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
123 |
|
139 |
|
(12 |
%) |
544 |
|
572 |
|
(5 |
%) |
Gold produced (000s oz 100% basis) |
153 |
|
174 |
|
(12 |
%) |
680 |
|
715 |
|
(5 |
%) |
Cost of sales ($/oz) |
1,149 |
|
1,088 |
|
6 |
% |
1,060 |
|
1,044 |
|
2 |
% |
Total cash costs ($/oz)b |
734 |
|
682 |
|
8 |
% |
666 |
|
634 |
|
5 |
% |
All-in sustaining costs ($/oz)b |
923 |
|
1,161 |
|
(21 |
%) |
1,006 |
|
886 |
|
14 |
% |
Kibali (45%) |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
92 |
|
91 |
|
1 |
% |
364 |
|
366 |
|
(1 |
%) |
Gold produced (000s oz 100% basis) |
205 |
|
203 |
|
1 |
% |
808 |
|
813 |
|
(1 |
%) |
Cost of sales ($/oz) |
1,163 |
|
1,088 |
|
7 |
% |
1,091 |
|
1,111 |
|
(2 |
%) |
Total cash costs ($/oz)b |
616 |
|
617 |
|
0 |
% |
608 |
|
568 |
|
7 |
% |
All-in sustaining costs ($/oz)b |
783 |
|
817 |
|
(4 |
%) |
778 |
|
693 |
|
12 |
% |
Veladero (50%) |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
58 |
|
44 |
|
31 |
% |
226 |
|
274 |
|
(18 |
%) |
Gold produced (000s oz 100% basis) |
116 |
|
89 |
|
31 |
% |
452 |
|
548 |
|
(18 |
%) |
Cost of sales ($/oz) |
1,074 |
|
1,136 |
|
(5 |
%) |
1,151 |
|
1,188 |
|
(3 |
%) |
Total cash costs ($/oz)b |
698 |
|
708 |
|
(1 |
%) |
748 |
|
734 |
|
2 |
% |
All-in sustaining costs ($/oz)b |
1,428 |
|
1,159 |
|
23 |
% |
1,308 |
|
1,105 |
|
18 |
% |
Porgera (47.5%)g |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
— |
|
— |
|
— |
|
86 |
|
284 |
|
(70 |
%) |
Gold produced (000s oz 100% basis) |
— |
|
— |
|
— |
|
181 |
|
597 |
|
(70 |
%) |
Cost of sales ($/oz) |
— |
|
— |
|
— |
|
1,225 |
|
994 |
|
23 |
% |
Total cash costs ($/oz)b |
— |
|
— |
|
— |
|
928 |
|
838 |
|
11 |
% |
All-in sustaining costs ($/oz)b |
— |
|
— |
|
— |
|
1,115 |
|
1,003 |
|
11 |
% |
Tongon (89.7%) |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
66 |
|
64 |
|
3 |
% |
255 |
|
245 |
|
4 |
% |
Gold produced (000s oz 100% basis) |
73 |
|
71 |
|
3 |
% |
284 |
|
273 |
|
4 |
% |
Cost of sales ($/oz) |
1,371 |
|
1,329 |
|
3 |
% |
1,334 |
|
1,469 |
|
(9 |
%) |
Total cash costs ($/oz)b |
810 |
|
731 |
|
11 |
% |
747 |
|
787 |
|
(5 |
%) |
All-in sustaining costs ($/oz)b |
853 |
|
777 |
|
10 |
% |
791 |
|
844 |
|
(6 |
%) |
Hemlo |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz) |
57 |
|
55 |
|
4 |
% |
223 |
|
213 |
|
5 |
% |
Cost of sales ($/oz) |
1,379 |
|
1,257 |
|
10 |
% |
1,256 |
|
1,137 |
|
10 |
% |
Total cash costs ($/oz)b |
1,104 |
|
1,099 |
|
0 |
% |
1,056 |
|
904 |
|
17 |
% |
All-in sustaining costs ($/oz)b |
1,464 |
|
1,497 |
|
(2 |
%) |
1,423 |
|
1,140 |
|
25 |
% |
North Marah |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
61 |
|
67 |
|
(9 |
%) |
261 |
|
251 |
|
4 |
% |
Gold produced (000s oz 100% basis) |
73 |
|
80 |
|
(9 |
%) |
311 |
|
334 |
|
(7 |
%) |
Cost of sales ($/oz) |
1,073 |
|
903 |
|
19 |
% |
992 |
|
953 |
|
4 |
% |
Total cash costs ($/oz)b |
799 |
|
649 |
|
23 |
% |
702 |
|
646 |
|
9 |
% |
All-in sustaining costs ($/oz)b |
989 |
|
758 |
|
30 |
% |
929 |
|
802 |
|
16 |
% |
Buzwagih |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
21 |
|
21 |
|
0 |
% |
84 |
|
83 |
|
1 |
% |
Gold produced (000s oz 100% basis) |
25 |
|
25 |
|
0 |
% |
100 |
|
115 |
|
(13 |
%) |
Cost of sales ($/oz) |
1,314 |
|
907 |
|
45 |
% |
1,021 |
|
1,240 |
|
(18 |
%) |
Total cash costs ($/oz)b |
1,267 |
|
687 |
|
84 |
% |
859 |
|
1,156 |
|
(26 |
%) |
All-in sustaining costs ($/oz)b |
1,283 |
|
693 |
|
85 |
% |
871 |
|
1,178 |
|
(26 |
%) |
Bulyanhuluh |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
23 |
|
7 |
|
229 |
% |
44 |
|
27 |
|
63 |
% |
Gold produced (000s oz 100% basis) |
27 |
|
8 |
|
229 |
% |
52 |
|
37 |
|
41 |
% |
Cost of sales ($/oz) |
1,181 |
|
1,502 |
|
(21 |
%) |
1,499 |
|
1,207 |
|
24 |
% |
Total cash costs ($/oz)b |
610 |
|
874 |
|
(30 |
%) |
832 |
|
676 |
|
23 |
% |
All-in sustaining costs ($/oz)b |
664 |
|
913 |
|
(27 |
%) |
895 |
|
773 |
|
16 |
% |
Kalgoorlie (50%)i |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
|
|
|
|
|
|
|
|
206 |
|
(100 |
%) |
Gold produced (000s oz 100% basis) |
|
|
|
|
|
|
|
|
413 |
|
(100 |
%) |
Cost of sales ($/oz) |
|
|
|
|
|
|
|
|
1,062 |
|
(100 |
%) |
Total cash costs ($/oz)b |
|
|
|
|
|
|
|
|
873 |
|
(100 |
%) |
All-in sustaining costs ($/oz)b |
|
|
|
|
|
|
|
|
1,183 |
|
(100 |
%) |
Total Attributable to Barrickj |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (000s oz) |
1,206 |
|
1,155 |
|
4 |
% |
4,760 |
|
5,465 |
|
(13 |
%) |
Cost of sales ($/oz)k |
1,065 |
|
1,065 |
|
0 |
% |
1,056 |
|
1,005 |
|
5 |
% |
Total cash costs ($/oz)b |
692 |
|
696 |
|
(1 |
%) |
699 |
|
671 |
|
4 |
% |
All-in sustaining costs ($/oz)b |
929 |
|
966 |
|
(4 |
%) |
967 |
|
894 |
|
8 |
% |
-
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 used in this section of the
press release to the most directly comparable IFRS measure, please
see the endnotes to this press release.
- 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.
- On July 1, 2019,
Cortez was contributed to Nevada Gold Mines, a joint venture with
Newmont. As a result, the amounts presented are on a 100% basis up
until June 30, 2019, and 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.
- A 61.5% interest
in these sites was acquired as a result of the formation of Nevada
Gold Mines on July 1, 2019.
- As Porgera was
placed on care and maintenance on April 25, 2020, no operating data
or per ounce data has been provided starting the third quarter of
2020.
- Formerly part of
Acacia Mining plc. On September 17, 2019, Barrick acquired all of
the shares of Acacia it did not own. Operating results are included
at 63.9% 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), on a 100% basis from October
1, 2019, to December 31, 2019, and on an 84% basis thereafter as
the GoT’s 16% free-carried interest was made effective from January
1, 2020.
- 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 $750 million. Accordingly, the amounts
presented represent our 50% interest until November 28, 2019.
- Excludes
Pierina, Golden Sunlight starting in the third quarter of 2019,
Morila (40%) starting in the third quarter of 2019 up until its
divestiture in November 2020, and Lagunas Norte starting in the
fourth quarter of 2019. These assets are producing incidental
ounces as they reach the end of their mine lives.
- Cost of sales
per ounce (Barrick’s share) is calculated as cost of sales - gold
on an attributable basis (excluding sites in care and maintenance)
divided by gold equity ounces sold.
Production and Cost Summary - Copper
|
For the three months ended |
For the years ended |
|
12/31/20 |
9/30/2020 |
Change |
12/31/20 |
12/31/19 |
Change |
Lumwana |
|
|
|
|
|
|
Copper production (millions lbs) |
78 |
|
62 |
|
26 |
% |
276 |
238 |
|
16 |
% |
Cost of sales ($/lb) |
1.96 |
|
2.06 |
|
(5 |
%) |
2.01 |
2.13 |
|
(6 |
%) |
C1 cash costs ($/lb)a |
1.58 |
|
1.49 |
|
6 |
% |
1.56 |
1.79 |
|
(13 |
%) |
All-in sustaining costs ($/lb)a |
2.60 |
|
2.58 |
|
1 |
% |
2.43 |
3.04 |
|
(20 |
%) |
Zaldívar
(50%) |
|
|
|
|
|
|
Copper production (millions lbs attributable basis) |
23 |
|
24 |
|
(4 |
%) |
106 |
128 |
|
(17 |
%) |
Copper produced (millions lbs 100% basis) |
46 |
|
48 |
|
(4 |
%) |
212 |
256 |
|
(17 |
%) |
Cost of sales ($/lb) |
2.68 |
|
2.20 |
|
22 |
% |
2.46 |
2.46 |
|
0 |
% |
C1 cash costs ($/lb)a |
2.01 |
|
1.64 |
|
23 |
% |
1.79 |
1.77 |
|
1 |
% |
All-in sustaining costs ($/lb)a |
2.70 |
|
2.27 |
|
19 |
% |
2.25 |
2.15 |
|
5 |
% |
Jabal Sayid (50%) |
|
|
|
|
|
|
Copper production (millions lbs attributable basis) |
18 |
|
17 |
|
6 |
% |
75 |
66 |
|
14 |
% |
Copper produced (millions lbs 100% basis) |
36 |
|
34 |
|
6 |
% |
150 |
132 |
|
14 |
% |
Cost of sales ($/lb) |
1.53 |
|
1.43 |
|
7 |
% |
1.42 |
1.53 |
|
(7 |
%) |
C1 cash costs ($/lb)a |
1.15 |
|
1.14 |
|
1 |
% |
1.11 |
1.26 |
|
(12 |
%) |
All-in sustaining costs ($/lb)a |
1.27 |
|
1.17 |
|
9 |
% |
1.24 |
1.51 |
|
(18 |
%) |
Total Copper |
|
|
|
|
|
|
Copper production (millions lbs) |
119 |
|
103 |
|
16 |
% |
457 |
432 |
|
6 |
% |
Cost of sales ($/lb)b |
2.06 |
|
1.97 |
|
5 |
% |
2.02 |
2.14 |
|
(6 |
%) |
C1 cash costs ($/lb)a |
1.61 |
|
1.45 |
|
11 |
% |
1.54 |
1.69 |
|
(9 |
%) |
All-in sustaining costs ($/lb)a |
2.42 |
|
2.31 |
|
5 |
% |
2.23 |
2.52 |
|
(12 |
%) |
-
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 the endnotes to this press
release.
- 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.
Technical Information
The scientific and technical information
contained in this press release has been reviewed and approved by
Steven Yopps, MMSA, Manager of Growth Projects, Nevada Gold Mines;
Craig Fiddes, SME-RM, Manager – Resource Modeling, Nevada Gold
Mines; Chad Yuhasz, P.Geo, Mineral Resource Manager, Latin America
& Asia Pacific; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM,
Mineral Resources Manager: Africa & 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, 2020.
Endnotes
Endnote 1
“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 and removes
depreciation, the non-controlling interest of cost of sales, and
includes by product credits. “All-in sustaining costs” per ounce
start 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 gold mining companies from around the
world, including Barrick), it is not a regulatory organization, and
other companies may calculate this measure differently. 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
|
|
For the three months ended |
|
For the years ended |
($
millions, except per ounce information in dollars) |
Footnote |
12/31/20 |
9/30/20 |
|
12/31/20 |
12/31/19 |
12/31/18 |
Cost of sales applicable to gold production |
|
1,681 |
|
1,768 |
|
|
6,832 |
|
6,514 |
|
4,621 |
|
Depreciation |
|
(495 |
) |
(508 |
) |
|
(1,975 |
) |
(1,902 |
) |
(1,253 |
) |
Cash cost of sales applicable to equity method investments |
|
69 |
|
53 |
|
|
222 |
|
226 |
|
0 |
|
By-product credits |
|
(56 |
) |
(84 |
) |
|
(228 |
) |
(138 |
) |
(131 |
) |
Realized (gains) losses on hedge and non-hedge derivatives |
a |
(1 |
) |
0 |
|
|
0 |
|
1 |
|
3 |
|
Non-recurring items |
b |
1 |
|
0 |
|
|
1 |
|
(55 |
) |
(172 |
) |
Other |
c |
(55 |
) |
(24 |
) |
|
(129 |
) |
(102 |
) |
(87 |
) |
Non-controlling interests |
d |
(323 |
) |
(337 |
) |
|
(1,312 |
) |
(878 |
) |
(313 |
) |
Total cash costs |
|
821 |
|
868 |
|
|
3,411 |
|
3,666 |
|
2,668 |
|
General & administrative costs |
|
24 |
|
50 |
|
|
185 |
|
212 |
|
265 |
|
Minesite exploration and evaluation costs |
e |
22 |
|
19 |
|
|
79 |
|
69 |
|
45 |
|
Minesite sustaining capital expenditures |
f |
354 |
|
415 |
|
|
1,559 |
|
1,320 |
|
975 |
|
Sustaining leases |
|
12 |
|
9 |
|
|
31 |
|
27 |
|
0 |
|
Rehabilitation - accretion and amortization (operating sites) |
g |
11 |
|
13 |
|
|
46 |
|
65 |
|
81 |
|
Non-controlling interest, copper operations and other |
h |
(142 |
) |
(166 |
) |
|
(594 |
) |
(470 |
) |
(374 |
) |
All-in sustaining costs |
|
1,102 |
|
1,208 |
|
|
4,717 |
|
4,889 |
|
3,660 |
|
Project exploration and evaluation and project costs |
e |
52 |
|
53 |
|
|
216 |
|
273 |
|
338 |
|
Community relations costs not related to current operations |
|
0 |
|
0 |
|
|
1 |
|
2 |
|
4 |
|
Project capital expenditures |
f |
184 |
|
126 |
|
|
471 |
|
370 |
|
459 |
|
Non-sustaining leases |
|
4 |
|
0 |
|
|
4 |
|
0 |
|
0 |
|
Rehabilitation - accretion and amortization (non-operating
sites) |
g |
4 |
|
3 |
|
|
10 |
|
22 |
|
33 |
|
Non-controlling interest and copper operations and other |
h |
(61 |
) |
(47 |
) |
|
(157 |
) |
(105 |
) |
(21 |
) |
All-in costs |
|
1,285 |
|
1,343 |
|
|
5,262 |
|
5,451 |
|
4,473 |
|
Ounces sold - equity basis (000s ounces) |
i |
1,186 |
|
1,249 |
|
|
4,879 |
|
5,467 |
|
4,544 |
|
Cost of sales per ounce |
j,k |
1,065 |
|
1,065 |
|
|
1,056 |
|
1,005 |
|
892 |
|
Total cash costs per ounce |
k |
692 |
|
696 |
|
|
699 |
|
671 |
|
588 |
|
Total
cash costs per ounce (on a co-product basis) |
k,l |
718 |
|
742 |
|
|
727 |
|
689 |
|
607 |
|
All-in sustaining costs per ounce |
k |
929 |
|
966 |
|
|
967 |
|
894 |
|
806 |
|
All-in
sustaining costs per ounce (on a co-product basis) |
k,l |
955 |
|
1,012 |
|
|
995 |
|
912 |
|
825 |
|
All-in costs per ounce |
k |
1,083 |
|
1,076 |
|
|
1,079 |
|
996 |
|
985 |
|
All-in
costs per ounce (on a co-product basis) |
k,l |
1,109 |
|
1,122 |
|
|
1,107 |
|
1,014 |
|
1,004 |
|
- Realized (gains) losses on hedge and non-hedge
derivativesIncludes realized hedge losses of $nil and $nil
for the three months and year ended December 31, 2020,
respectively (September 30, 2020: $nil; 2019: $nil; 2018:
$4 million), and realized non-hedge gains of $1 million and
$nil for the three months and year ended December 31, 2020,
respectively (September 30, 2020: $nil; 2019: gains of
$1 million; 2018: gains of $1 million). Refer to note 5
to the Financial Statements for further information.
- Non-recurring itemsThese costs are not
indicative of our cost of production and have been excluded from
the calculation of total cash costs. Non-recurring items in 2019
relate to organizational restructuring. In 2018, non-recurring
items mainly relate to inventory impairment of $166 million at
Lagunas Norte.
- OtherOther adjustments for the three months
and year ended December 31, 2020 include the removal of total
cash costs and by-product credits associated with Pierina, Golden
Sunlight starting in the third quarter of 2019, Morila starting in
the third quarter of 2019 up until its divestiture in November
2020, and Lagunas Norte starting in the fourth quarter of 2019 of
$26 million and $104 million, respectively (September 30,
2020: $27 million; 2019: $92 million; 2018: $87 million). These
assets are producing incidental ounces as they reach the end of
their mine lives.
- Non-controlling interestsNon-controlling
interests include non-controlling interests related to gold
production of $490 million and $1,959 million, respectively,
for the three months and year ended December 31, 2020
(September 30, 2020: $508 million; 2019: $1,306 million;
2018: $453 million). Non-controlling interests include Pueblo
Viejo; North Mara, Bulyanhulu and Buzwagi (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 from January 1, 2020 onwards, the date the
GoT’s 16% free carried interest was made effective). Commencing
January 1, 2019, the effective date of the Merger, the
non-controlling interests also include Loulo-Gounkoto and Tongon
and starting July 1, 2019, it also includes Nevada Gold Mines.
Refer to note 5 to the Financial Statements for further
information.
- Exploration and evaluation costsExploration,
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 88 of the Q4 2020 MD&A.
- Capital expendituresCapital 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. 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 the expansion project at Pueblo Viejo, the
Goldrush exploration declines, the restart of mining activities at
Bulyanhulu, and construction of the third shaft at Turquoise Ridge.
Refer to page 87 of the Q4 2020 MD&A.
- Rehabilitation - accretion and
amortizationIncludes 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.
- Non-controlling interest and copper
operationsRemoves 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 North Mara, Bulyanhulu and Buzwagi (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 from January 1, 2020 onwards, the date the
GoT’s 16% free carried interest was made effective), 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). Commencing
January 1, 2019, the effective date of the Merger, also removes the
non-controlling interest of our Loulo-Gounkoto and Tongon. Also
removes 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 starting the
third quarter of 2019, Morila starting in the third quarter of 2019
up until its divestiture in November 2020, 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 |
12/31/20 |
9/30/20 |
12/31/20 |
12/31/19 |
12/31/18 |
General & administrative costs |
(5 |
) |
(6 |
) |
(25 |
) |
(58 |
) |
(104 |
) |
Minesite exploration and evaluation costs |
(9 |
) |
(5 |
) |
(25 |
) |
(16 |
) |
(3 |
) |
Rehabilitation - accretion and amortization (operating sites) |
(3 |
) |
(3 |
) |
(14 |
) |
(13 |
) |
(6 |
) |
Minesite sustaining capital expenditures |
(125 |
) |
(152 |
) |
(530 |
) |
(383 |
) |
(261 |
) |
All-in sustaining costs total |
(142 |
) |
(166 |
) |
(594 |
) |
(470 |
) |
(374 |
) |
Project exploration and evaluation and project costs |
(6 |
) |
(9 |
) |
(25 |
) |
(54 |
) |
(16 |
) |
Project capital expenditures |
(55 |
) |
(38 |
) |
(132 |
) |
(51 |
) |
(5 |
) |
All-in costs total |
(61 |
) |
(47 |
) |
(157 |
) |
(105 |
) |
(21 |
) |
|
i. |
Ounces sold - equity basis |
|
|
Figures remove the impact of Pierina, Golden Sunlight starting in
the third quarter of 2019, Morila starting in the third quarter of
2019 up until its divestiture in November 2020, and Lagunas Norte
starting in the fourth quarter of 2019. These assets are producing
incidental ounces as they reach the end of their mine lives. |
|
|
|
|
j. |
Cost of sales per ounce |
|
|
Figures remove the cost of sales impact of Pierina of $4 million
and $18 million, respectively, for the three months and year ended
December 31, 2020 (September 30, 2020: $4 million; 2019:
$113 million; 2018: $116 million); starting in the third quarter of
2019, Golden Sunlight of $nil and $nil, respectively, for the three
months and year ended December 31, 2020 (September 30,
2020: $nil; 2019: $1 million; 2018: $nil); starting in the third
quarter of 2019 up until its divestiture in November 2020, Morila
of $2 million and $22 million, respectively, for the three months
and year ended December 31, 2020 (September 30, 2020: $7
million; 2019: $23 million; 2018: $nil); and starting in the fourth
quarter of 2019, Lagunas Norte of $26 million and $92 million,
respectively, for the three months and year ended December 31,
2020 (September 30, 2020: $22 million; 2019: $26 million;
2018: $nil). These assets are producing incidental ounces as they
reach the end of their mine lives. Cost of sales per ounce excludes
non-controlling interest related to gold production. Cost of sales
applicable to gold per ounce is calculated using cost of sales
applicable to gold on an attributable basis (removing the
non-controlling interest of 40% Pueblo Viejo, 16% North Mara,
Bulyanhulu and Buzwagi starting January 1, 2020, the date the GoT’s
16% free carried interest was made effective (36.1% from January 1,
2018 to September 30, 2019; notwithstanding the completion of the
Acacia transaction on September 17, 2019, we consolidated our
interest in Acacia and recorded a non-controlling interest of 36.1%
in the income statement for the entirety of the third quarter of
2019 as a matter of convenience); and 63.1% South Arturo from cost
of sales from July 1, 2019 onwards as a result of its contribution
to Nevada Gold Mines (and on a 40% basis from January 1, 2018 to
June 30, 2019), divided by attributable gold ounces. Commencing
January 1, 2019, the effective date of the Merger, the
non-controlling interest of 20% Loulo-Gounkoto and 10.3% Tongon is
also removed from cost of sales and our proportionate share of cost
of sales attributable to equity method investments (Kibali, and
Morila until the second quarter of 2019) is included. Cost of sales
applicable to gold per ounce also removes the non-controlling
interest of 38.5% Nevada Gold Mines from July 1, 2019 onwards. |
|
|
|
|
k. |
Per ounce figures |
|
|
Cost of sales per ounce, cash costs per ounce, all-in sustaining
costs per ounce and all-in costs per ounce may not calculate based
on amounts presented in this table due to rounding. |
|
|
|
|
l. |
Co-product costs per ounce |
|
|
Cash costs per ounce, all-in sustaining costs per ounce and all-in
costs per ounce presented on a co-product basis remove the impact
of by-product credits of our gold production (net of
non-controlling interest) calculated as: |
($ millions) |
For the three months ended |
For the years ended |
|
12/31/20 |
9/30/20 |
12/31/20 |
12/31/19 |
12/31/18 |
By-product credits |
56 |
|
84 |
|
|
228 |
|
138 |
|
131 |
|
Non-controlling interest |
(27 |
) |
(29 |
) |
|
(92 |
) |
(48 |
) |
(45 |
) |
By-product credits (net of non-controlling interest) |
29 |
|
55 |
|
|
136 |
|
90 |
|
86 |
|
Endnote 2
“Free cash flow” is a non-GAAP financial
performance measure that 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
|
For the three months ended |
|
For the years ended |
($ millions) |
12/31/20 |
9/30/20 |
|
12/31/20 |
12/31/19 |
12/31/18 |
Net cash provided by operating activities |
1,638 |
|
1,859 |
|
|
5,417 |
|
2,833 |
|
1,765 |
|
Capital expenditures |
(546 |
) |
(548 |
) |
|
(2,054 |
) |
(1,701 |
) |
(1,400 |
) |
Free cash flow |
1,092 |
|
1,311 |
|
|
3,363 |
|
1,132 |
|
365 |
|
Endnote 3
“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;
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
|
For the three months ended |
|
For the years ended |
($ millions, except per share amounts in dollars) |
12/31/20 |
9/30/20 |
|
12/31/20 |
12/31/19 |
12/31/18 |
Net earnings (loss) attributable to equity holders of the
Company |
685 |
|
882 |
|
|
2,324 |
|
3,969 |
|
(1,545 |
) |
Impairment charges (reversals) related to long-lived assetsa |
40 |
|
4 |
|
|
(269 |
) |
(1,423 |
) |
900 |
|
Acquisition/disposition (gains) lossesb |
(126 |
) |
(2 |
) |
|
(180 |
) |
(2,327 |
) |
(68 |
) |
(Gain) loss on currency translation |
16 |
|
16 |
|
|
50 |
|
109 |
|
136 |
|
Significant tax adjustmentsc |
(2 |
) |
(66 |
) |
|
(119 |
) |
34 |
|
742 |
|
Other (income) expense adjustmentsd |
15 |
|
(90 |
) |
|
71 |
|
(687 |
) |
366 |
|
Unrealized gains (losses) on non-hedge derivative instruments |
0 |
|
0 |
|
|
0 |
|
0 |
|
1 |
|
Tax effect and non-controlling intereste |
(12 |
) |
(18 |
) |
|
165 |
|
1,227 |
|
(123 |
) |
Adjusted net earnings |
616 |
|
726 |
|
|
2,042 |
|
902 |
|
409 |
|
Net earnings (loss) per sharef |
0.39 |
|
0.50 |
|
|
1.31 |
|
2.26 |
|
(1.32 |
) |
Adjusted net earnings per sharef |
0.35 |
|
0.41 |
|
|
1.15 |
|
0.51 |
|
0.35 |
|
- Net impairment reversals for the current year primarily relate
to non-current asset reversals at our Tanzanian assets. Net
impairment charges for 2019 primarily relate to non-current asset
reversals at Lumwana and Pueblo Viejo, partially offset by
impairment charges at Pascua-Lama.
-
Acquisition/disposition gains for the current year primarily relate
to the gain on the sale of Eskay Creek, Morila and Bullfrog in the
fourth quarter of 2020. This was further impacted by the sale of
Massawa in the first quarter of 2020. Acquisition/disposition gains
for 2019 primarily relate to the gain on the remeasurement of
Turquoise Ridge to fair value as a result of its contribution to
Nevada Gold Mines and the gain on sale of our 50% interest in
Kalgoorlie.
- Significant tax
adjustments in the current year primarily relate to deferred tax
recoveries as a result of tax reform measures in Argentina and
adjustments made in recognition of the net settlement of all
outstanding disputes with the GoT. Significant tax adjustments for
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 impact of
changes in the discount rate assumptions on our closed mine
rehabilitation provision, care and maintenance expenses at Porgera
and donations related to Covid-19, partially offset by the gain on
the remeasurement of the residual cash liability relating to our
silver sale agreement with Wheaton. Other expense adjustments for
2019 primarily relate to the gain on the de-recognition of the
deferred revenue liability relating to our silver sale agreement
with Wheaton and the gain on a settlement of customs duty and
indirect taxes at Lumwana.
- 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 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
|
For the three months ended |
For the years ended |
($ millions, except per ounce/pound information in dollars) |
Gold |
Copper |
Gold |
Copper |
|
12/31/20 |
9/30/20 |
12/31/20 |
9/30/20 |
12/31/20 |
12/31/19 |
12/31/18 |
12/31/20 |
12/31/19 |
12/31/18 |
Sales |
3,028 |
|
3,237 |
|
195 |
219 |
11,670 |
|
9,186 |
|
6,600 |
|
697 |
393 |
512 |
Sales applicable to
non-controlling interests |
(934 |
) |
(967 |
) |
0 |
0 |
(3,494 |
) |
(1,981 |
) |
(734 |
) |
0 |
0 |
0 |
Sales applicable to equity
method investmentsa,b |
168 |
|
183 |
|
135 |
121 |
648 |
|
543 |
|
0 |
|
483 |
492 |
442 |
Realized non-hedge gold/copper
derivative (losses) gains |
0 |
|
0 |
|
0 |
0 |
0 |
|
1 |
|
2 |
|
0 |
0 |
0 |
Sales applicable to sites in
care and maintenancec |
(41 |
) |
(53 |
) |
0 |
0 |
(170 |
) |
(140 |
) |
(111 |
) |
0 |
0 |
0 |
Treatment and refinement
charges |
1 |
|
4 |
|
39 |
39 |
7 |
|
0 |
|
1 |
|
157 |
99 |
144 |
Export duties |
0 |
|
0 |
|
0 |
0 |
0 |
|
0 |
|
(1 |
) |
0 |
0 |
0 |
Otherd |
(1 |
) |
0 |
|
0 |
0 |
13 |
|
22 |
|
12 |
|
0 |
0 |
0 |
Revenues – as adjusted |
2,221 |
|
2,404 |
|
369 |
379 |
8,674 |
|
7,631 |
|
5,769 |
|
1,337 |
984 |
1,098 |
Ounces/pounds sold (000s ounces/millions pounds)c |
1,186 |
|
1,249 |
|
108 |
116 |
4,879 |
|
5,467 |
|
4,544 |
|
457 |
355 |
382 |
Realized gold/copper price per ounce/pounde |
1,871 |
|
1,926 |
|
3.39 |
3.28 |
1,778 |
|
1.396 |
|
1,270 |
|
2.92 |
2.77 |
2.88 |
- Represents sales
of $168 million and $648 million, respectively, for the three
months and year ended December 31, 2020 (September 30,
2020: $176 million; 2019: $505 million; 2018: $nil) applicable to
our 45% equity method investment in Kibali and $nil and $nil,
respectively (September 30, 2020: $nil; 2019: $39 million;
2018: $nil) applicable to our 40% equity method investment in
Morila for gold. Represents sales of $82 million and $298 million,
respectively, for the three months and year ended
December 31, 2020 (September 30, 2020: $66 million; 2019:
$343 million; 2018: $300 million) applicable to our 50% equity
method investment in Zaldívar and $59 million and $204 million,
respectively (September 30, 2020: $59 million; 2019: $168
million; 2018: $161 million) applicable to our 50% equity method
investment in Jabal Sayid.
- Sales applicable
to equity method investments are net of treatment and refinement
charges.
- Figures exclude
Pierina, Golden Sunlight starting in the third quarter of 2019,
Morila starting in the third quarter of 2019 up until its
divestiture in November 2020, and Lagunas Norte starting in the
fourth quarter of 2019 from the calculation of realized price per
ounce. These assets are producing incidental ounces as they reach
the end of their mine lives.
- Represents
cumulative catch-up adjustment to revenue relating to our streaming
arrangements. Refer to note 2f to the Financial Statements for more
information.
- Realized price per ounce/pound may
not calculate based on amounts presented in this table due to
rounding.
Endnote 5
Includes North Mara, Bulyanhulu and Buzwagi on a
84% basis starting January 1, 2020 (and on a 63.9% basis from
January 1, 2018 to 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 on a 100%
basis from October 1, 2019 to December 31, 2019), Pueblo Viejo on a
60% basis, South Arturo on a 36.9% basis from July 1, 2019 onwards
as a result of the contribution to Nevada Gold Mines (and on a 60%
basis from January 1, 2018 to June 30, 2019), and Veladero on a 50%
basis, which reflects our equity share of production and sales.
Commencing on January 1, 2019, the effective date of the merger
with Randgold Resources Limited (the “Merger”), 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 until the second quarter of
2019. Also removes the non-controlling interest of 38.5% Nevada
Gold Mines from July 1, 2019 onwards.
Endnote 6
Cost 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, 16% North Mara, Bulyanhulu and Buzwagi starting
January 1, 2020, the date the GoT’s 16% free carried interest was
made effective (36.1% from January 1, 2018 to 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 63.1% South Arturo from cost of sales from
July 1, 2019 onwards as a result of its contribution to Nevada Gold
Mines (and on a 40% basis from January 1, 2018 to June 30, 2019),
divided by attributable gold ounces. Commencing January 1, 2019,
the effective date of the Merger, the non-controlling interest of
20% Loulo-Gounkoto and 10.3% Tongon is also removed from cost of
sales and our proportionate share of cost of sales attributable to
equity method investments (Kibali, and Morila until the second
quarter of 2019) is included. Cost of sales applicable to gold per
ounce also removes the non-controlling interest of 38.5% Nevada
Gold Mines 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 7
Amounts reflect production and sales from Jabal
Sayid and Zaldívar on a 50% basis, which reflects our equity share
of production, and Lumwana.
Endnote 8
“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
|
For the three months ended |
|
For the years ended |
($ millions, except per pound information in dollars) |
12/31/20 |
9/30/20 |
|
12/31/20 |
12/31/19 |
12/31/18 |
Cost of sales |
125 |
|
154 |
|
|
556 |
|
361 |
|
558 |
|
Depreciation/amortization |
(41 |
) |
(61 |
) |
|
(208 |
) |
(100 |
) |
(170 |
) |
Treatment and refinement charges |
39 |
|
39 |
|
|
157 |
|
99 |
|
144 |
|
Cash cost of sales applicable to equity method investments |
72 |
|
57 |
|
|
267 |
|
288 |
|
281 |
|
Less: royalties and production taxesa |
(16 |
) |
(16 |
) |
|
(54 |
) |
(35 |
) |
(44 |
) |
By-product credits |
(5 |
) |
(4 |
) |
|
(15 |
) |
(9 |
) |
(6 |
) |
Other |
0 |
|
0 |
|
|
0 |
|
(5 |
) |
(11 |
) |
C1 cash cost of sales |
174 |
|
169 |
|
|
703 |
|
599 |
|
752 |
|
General & administrative costs |
5 |
|
4 |
|
|
18 |
|
19 |
|
28 |
|
Rehabilitation - accretion and amortization |
1 |
|
2 |
|
|
8 |
|
15 |
|
16 |
|
Royalties and production taxes |
16 |
|
16 |
|
|
54 |
|
35 |
|
44 |
|
Minesite exploration and evaluation costs |
1 |
|
2 |
|
|
5 |
|
6 |
|
4 |
|
Minesite sustaining capital expenditures |
65 |
|
74 |
|
|
223 |
|
215 |
|
220 |
|
Sustaining leases |
2 |
|
2 |
|
|
9 |
|
5 |
|
0 |
|
Inventory write-downs |
0 |
|
0 |
|
|
0 |
|
0 |
|
11 |
|
All-in sustaining costs |
264 |
|
269 |
|
|
1,020 |
|
894 |
|
1,075 |
|
Pounds sold - consolidated basis (millions pounds) |
108 |
|
116 |
|
|
457 |
|
355 |
|
382 |
|
Cost of sales per poundb,c |
2.06 |
|
1.97 |
|
|
2.02 |
|
2.14 |
|
2.40 |
|
C1 cash costs per poundb |
1.61 |
|
1.45 |
|
|
1.54 |
|
1.69 |
|
1.97 |
|
All-in sustaining costs per poundb |
2.42 |
|
2.31 |
|
|
2.23 |
|
2.52 |
|
2.82 |
|
- For the three months and year ended
December 31, 2020, royalties and production taxes include
royalties of $16 million and $54 million, respectively
(September 30, 2020: $16 million, 2019: $34 million and 2018:
$39 million).
- 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.
- 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 9
Lost-Time Injury Frequency Rate (“LTIFR”) is a
ratio calculated as follows: number of lost-time injuries x
1,000,000 hours divided by the total number of hours worked.
Endnote 10Total reportable
incident frequency rate (“TRIFR”) is a ratio calculated as follows:
number of reportable injuries x 1,000,000 hours divided by the
total number of hours worked. Reportable injuries include
fatalities, lost-time injuries, restricted duty injuries, and
medically treated injuries.
Endnote 11
Class 1 - High Significance is defined as an
incident that causes significant negative impacts on human health
or the environment or an incident that extends onto publicly
accessible land and has the potential to cause significant adverse
impact to surrounding communities, livestock or wildlife. Class 2 -
Medium Significance is defined as an incident that has the
potential to cause negative impact on human health or the
environment but is reasonably anticipated to result in only
localized and short-term environmental or community impact
requiring minor remediation.
Endnote 12
Estimated in accordance with National Instrument
43-101 - Standards of Disclosure for Mineral Projects as required
by Canadian securities regulatory authorities. Estimates are as of
December 31, 2020, unless otherwise noted. Proven reserves of
280 million tonnes grading 2.37 g/t, representing 21 million ounces
of gold, and 350 million tonnes grading 0.39%, representing 3,000
million pounds of copper. Probable reserves of 990 million tonnes
grading 1.46 g/t, representing 47 million ounces of gold, and 1,100
million tonnes grading 0.39%, representing 9,700 million pounds of
copper. Measured resources of 530 million tonnes grading 2.11 g/t,
representing 36 million ounces of gold, and 600 million tonnes
grading 0.36%, representing 4,800 million pounds of copper.
Indicated resources of 2,800 million tonnes grading 1.41 g/t,
representing 130 million ounces of gold, and 2,500 million tonnes
grading 0.36%, representing 20,000 million pounds of copper.
Inferred resources of 980 million tonnes grading 1.4 g/t,
representing 43 million ounces of gold, and 440 million tonnes
grading 0.2%, representing 2,200 million pounds of copper. Complete
mineral reserve and mineral resource data for all mines and
projects referenced in this press release, including tonnes,
grades, and ounces, can be found on pages 136-143 of Barrick’s
Fourth Quarter and Year-End 2020 Report.
Endnote 13Per share amounts for
the proposed return of capital distribution are based on issued and
outstanding Barrick shares as of December 31, 2020 and are subject
to change.
Endnote 14
The 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, future prospects
and other factors deemed relevant by the Board.
Endnote 15
On a 100% basis.
Endnote 16
A Tier One Gold Asset is an asset with a reserve
potential to deliver a minimum 10-year life, 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 17
Unchanged from 2019.
Endnote 18
Includes our 36.9% share of South Arturo.
Endnote 19
Based on the communication we received from the
Government of Papua New Guinea that the SML will not be extended,
Porgera was placed on temporary care and maintenance on April 25,
2020 to ensure the safety and security of our employees and
communities. Due to the uncertainty related to the timing and scope
of future developments on the mine’s operating outlook, 2021
guidance for Porgera has not been included.
Endnote 20
Total cash costs and all-in sustaining costs per
ounce include costs allocated to non-operating sites.
Endnote 21
Operating division guidance ranges reflect
expectations at each individual operating division, and may not add
up to the company-wide guidance range total. The 2021 guidance
ranges exclude Pierina, Lagunas Norte, and Golden Sunlight, which
are mining incidental ounces as they enter closure.
Endnote 22
Includes corporate administration costs.
Endnote 23
Attributable 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.
Endnote 24
EBITDA 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; 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
|
For the three months ended |
|
For the years ended |
($
millions) |
12/31/20 |
9/30/20 |
|
12/31/20 |
12/31/19 |
12/31/18 |
Net earnings (loss) |
1,058 |
|
1,271 |
|
|
3,614 |
|
4,574 |
|
(1,435 |
) |
Income tax expense |
404 |
|
284 |
|
|
1,332 |
|
1,783 |
|
1,198 |
|
Finance costs, neta |
72 |
|
72 |
|
|
306 |
|
394 |
|
458 |
|
Depreciation |
544 |
|
574 |
|
|
2,208 |
|
2,032 |
|
1,457 |
|
EBITDA |
2,078 |
|
2,201 |
|
|
7,460 |
|
8,783 |
|
1,678 |
|
Impairment charges (reversals)
of long-lived assetsb |
40 |
|
4 |
|
|
(269 |
) |
(1,423 |
) |
900 |
|
Acquisition/disposition
(gains)/lossesc |
(126 |
) |
(2 |
) |
|
(180 |
) |
(2,327 |
) |
(68 |
) |
Foreign currency translation
(gains)/losses |
16 |
|
16 |
|
|
50 |
|
109 |
|
136 |
|
Other (income) expense
adjustmentsd |
15 |
|
(90 |
) |
|
71 |
|
(687 |
) |
336 |
|
Unrealized gains on non-hedge
derivative instruments |
0 |
|
0 |
|
|
0 |
|
0 |
|
1 |
|
Income
tax expense, net finance costsa, and depreciation from equity
investees |
83 |
|
94 |
|
|
360 |
|
378 |
|
97 |
|
Adjusted EBITDA |
2,106 |
|
2,223 |
|
|
7,492 |
|
4,833 |
|
3,080 |
|
- Finance costs exclude
accretion.
- Net impairment reversals for the
current year primarily relate to non-current asset reversals at our
Tanzanian assets. Net impairment charges for 2019 primarily relate
to non-current asset reversals at Lumwana and Pueblo Viejo,
partially offset by impairment charges at Pascua-Lama.
- Acquisition/disposition gains for
the current year primarily relate to the gain on the sale of Eskay
Creek, Morila and Bullfrog in the fourth quarter of 2020. This was
further impacted by the sale of Massawa in the first quarter of
2020. Acquisition/disposition gains for 2019 primarily relate to
the gain on the remeasurement of Turquoise Ridge to fair value as a
result of its contribution to Nevada Gold Mines and the gain on
sale of our 50% interest in Kalgoorlie.
- Other expense adjustments for the
current year primarily relate to the impact of changes in the
discount rate assumptions on our closed mine rehabilitation
provision, care and maintenance expenses at Porgera and donations
related to Covid-19, partially offset by the gain on the
remeasurement of the residual cash liability relating to our silver
sale agreement with Wheaton. Other expense adjustments for 2019
primarily relate to the gain on the de-recognition of the deferred
revenue liability relating to our silver sale agreement with
Wheaton and the gain on a settlement of customs duty and indirect
taxes at Lumwana.
Financial and Operating Highlights
|
For the three months ended |
|
For the years ended |
|
12/31/20 |
9/30/20 |
Change |
|
12/31/20 |
12/31/19 |
Change |
Financial Results ($ millions) |
|
|
|
|
|
|
|
Revenues |
3,279 |
|
|
3,540 |
|
(7 |
)% |
|
12,595 |
|
|
9,717 |
|
30 |
% |
Cost of sales |
1,814 |
|
|
1,927 |
|
(6 |
)% |
|
7,417 |
|
|
6,911 |
|
7 |
% |
Net earnings (loss)a |
685 |
|
|
882 |
|
(22 |
)% |
|
2,324 |
|
|
3,969 |
|
(41 |
%) |
Adjusted net earningsb |
616 |
|
|
726 |
|
(15 |
)% |
|
2,042 |
|
|
902 |
|
126 |
% |
Adjusted EBITDAb |
2,106 |
|
|
2,223 |
|
(5 |
)% |
|
7,492 |
|
|
4,833 |
|
55 |
% |
Adjusted EBITDA marginb,c |
64 |
|
% |
63 |
% |
2 |
% |
|
59 |
|
% |
50 |
% |
18 |
% |
Total minesite sustaining
capital expendituresd |
354 |
|
|
415 |
|
(15 |
)% |
|
1,559 |
|
|
1,320 |
|
18 |
% |
Total project capital
expendituresd |
184 |
|
|
126 |
|
46 |
% |
|
471 |
|
|
370 |
|
27 |
% |
Total consolidated capital
expendituresd,e |
546 |
|
|
548 |
|
0 |
% |
|
2,054 |
|
|
1,701 |
|
21 |
% |
Net cash provided by operating
activities |
1,638 |
|
|
1,859 |
|
(12 |
)% |
|
5,417 |
|
|
2,833 |
|
91 |
% |
Net cash provided by operating
activities marginf |
50 |
|
% |
53 |
% |
(6 |
)% |
|
43 |
|
% |
29 |
% |
48 |
% |
Free cash flowb |
1,092 |
|
|
1,311 |
|
(17 |
)% |
|
3,363 |
|
|
1,132 |
|
197 |
% |
Net earnings (loss) per share
(basic and diluted) |
0.39 |
|
|
0.50 |
|
(22 |
)% |
|
1.31 |
|
|
2.26 |
|
(42 |
%) |
Adjusted net earnings (basic)b
per share |
0.35 |
|
|
0.41 |
|
(15 |
)% |
|
1.15 |
|
|
0.51 |
|
125 |
% |
Weighted average diluted common shares (millions of shares) |
1,778 |
|
|
1,778 |
|
0 |
% |
|
1,778 |
|
|
1,758 |
|
1 |
% |
Operating Results |
|
|
|
|
|
|
|
Gold production (thousands of
ounces)g |
1,206 |
|
|
1,155 |
|
4 |
% |
|
4,760 |
|
|
5,465 |
|
(13 |
%) |
Gold sold (thousands of
ounces)g |
1,186 |
|
|
1,249 |
|
(5 |
)% |
|
4,879 |
|
|
5,467 |
|
(11 |
%) |
Market gold price ($/oz) |
1,874 |
|
|
1,909 |
|
(2 |
)% |
|
1,770 |
|
|
1,393 |
|
27 |
% |
Realized gold priceb,g
($/oz) |
1,871 |
|
|
1,926 |
|
(3 |
)% |
|
1,778 |
|
|
1,396 |
|
27 |
% |
Gold cost of sales (Barrick’s
share)g,h ($/oz) |
1,065 |
|
|
1,065 |
|
0 |
% |
|
1,056 |
|
|
1,005 |
|
5 |
% |
Gold total cash costsb,g
($/oz) |
692 |
|
|
696 |
|
(1 |
)% |
|
699 |
|
|
671 |
|
4 |
% |
Gold all-in sustaining costsb,g
($/oz) |
929 |
|
|
966 |
|
(4 |
)% |
|
967 |
|
|
894 |
|
8 |
% |
Copper production (millions of
pounds)i |
119 |
|
|
103 |
|
16 |
% |
|
457 |
|
|
432 |
|
6 |
% |
Copper sold (millions of
pounds)i |
108 |
|
|
116 |
|
(7 |
)% |
|
457 |
|
|
355 |
|
29 |
% |
Market copper price ($/lb) |
3.25 |
|
|
2.96 |
|
10 |
% |
|
2.80 |
|
|
2.72 |
|
3 |
% |
Realized copper priceb,i
($/lb) |
3.39 |
|
|
3.28 |
|
3 |
% |
|
2.92 |
|
|
2.77 |
|
5 |
% |
Copper cost of sales (Barrick’s
share)i,j ($/lb) |
2.06 |
|
|
1.97 |
|
5 |
% |
|
2.02 |
|
|
2.14 |
|
(6 |
%) |
Copper C1 cash costsb,i
($/lb) |
1.61 |
|
|
1.45 |
|
11 |
% |
|
1.54 |
|
|
1.69 |
|
(9 |
%) |
Copper all-in sustaining costsb,i ($/lb) |
2.42 |
|
|
2.31 |
|
5 |
% |
|
2.23 |
|
|
2.52 |
|
(12 |
%) |
|
As at 12/31/20 |
As at 9/30/20 |
Change |
|
As at 12/31/20 |
As at 12/31/19 |
Change |
Financial Position ($ millions) |
|
|
|
|
|
|
|
Debt (current and long-term) |
5,155 |
|
|
5,161 |
|
0 |
% |
|
5,155 |
|
|
5,536 |
|
(7 |
)% |
Cash and equivalents |
5,188 |
|
|
4,744 |
|
9 |
% |
|
5,188 |
|
|
3,314 |
|
57 |
% |
Debt, net of cash |
(33 |
) |
|
417 |
|
(108 |
)% |
|
(33 |
) |
|
2,222 |
|
(101 |
%) |
- Net earnings (loss) represents net earnings (loss) attributable
to the equity holders of the Company.
- Adjusted net earnings, adjusted
EBITDA, adjusted EBITDA margin, 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 96 to 122 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 North Mara, Bulyanhulu and
Buzwagi on a 84% basis starting January 1, 2020 (and on a 63.9%
basis from January 1, 2018 to 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 on a 100%
basis from October 1, 2019 to December 31, 2019), Pueblo Viejo on a
60% basis, South Arturo on a 36.9% basis from July 1, 2019 onwards
as a result of the contribution to Nevada Gold Mines (and on a 60%
basis from January 1, 2018 to June 30, 2019), and Veladero on a 50%
basis, which reflects our equity share of production and sales.
Commencing on January 1, 2019, the effective date of the merger
with Randgold Resources Limited (the “Merger”), 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 until the second quarter of
2019. 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.
Consolidated Statements of Income
Barrick Gold Corporation |
|
|
For the
years ended December 31 (in millions of United States dollars,
except per share data) |
|
2020 |
|
2019 |
Revenue (notes 5 and 6) |
$12,595 |
|
|
$9,717 |
|
|
Costs and expenses |
|
|
Cost of sales (notes 5 and 7) |
|
7,417 |
|
|
|
6,911 |
|
|
General and administrative
expenses (note 11) |
|
185 |
|
|
|
212 |
|
|
Exploration, evaluation and
project expenses (notes 5 and 8) |
|
295 |
|
|
|
342 |
|
|
Impairment reversals (note
10) |
|
(269 |
) |
|
|
(1,423 |
) |
|
Loss on currency
translation |
|
50 |
|
|
|
109 |
|
|
Closed mine rehabilitation
(note 27b) |
|
90 |
|
|
|
5 |
|
|
Income from equity investees
(note 16) |
|
(288 |
) |
|
|
(165 |
) |
|
Other
(income) expense (note 9) |
|
(178 |
) |
|
|
(3,100 |
) |
|
Income before finance items and income taxes |
|
5,293 |
|
|
|
6,826 |
|
|
Finance
costs, net (note 14) |
|
(347 |
) |
|
|
(469 |
) |
|
Income before income taxes |
|
4,946 |
|
|
|
6,357 |
|
|
Income
tax expense (note 12) |
|
(1,332 |
) |
|
|
(1,783 |
) |
|
Net income |
$3,614 |
|
|
$4,574 |
|
|
Attributable to: |
|
|
Equity holders of Barrick Gold
Corporation |
$2,324 |
|
|
$3,969 |
|
|
Non-controlling interests (note 32) |
$1,290 |
|
|
$605 |
|
|
Earnings (loss) per share data attributable to the equity holders
of Barrick Gold Corporation (note 13) |
|
|
Net income |
|
|
Basic |
$1.31 |
|
|
$2.26 |
|
|
Diluted |
$1.31 |
|
|
$2.26 |
|
|
The notes to these unaudited consolidated financial statements,
which are contained in the Fourth Quarter and Year End Report,
available on our website are an integral part of these consolidated
financial statements.
Consolidated Statements of Comprehensive Income
Barrick Gold Corporation |
|
For the
years ended December 31 (in millions of United States dollars) |
2020 |
2019 |
Net income |
$3,614 |
|
|
$4,574 |
|
|
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 $nil |
|
(3 |
) |
|
|
— |
|
|
Realized (gains) losses on derivatives designated as cash flow
hedges, net of tax $nil and $nil |
|
4 |
|
|
|
— |
|
|
Currency translation adjustments, net of tax $nil and $nil |
|
(7 |
) |
|
|
(6 |
) |
|
Items that will not be
reclassified to profit or loss: |
|
|
Actuarial gain (loss) on post-employment benefit obligations, net
of tax $1 and ($3) |
|
(6 |
) |
|
|
(6 |
) |
|
Net change in value of equity investments, net of tax ($38) and
$nil |
|
148 |
|
|
|
48 |
|
|
Total other comprehensive income |
|
136 |
|
|
|
36 |
|
|
Total comprehensive income |
$3,750 |
|
|
$4,610 |
|
|
Attributable to: |
|
|
Equity holders of Barrick Gold
Corporation |
$2,460 |
|
|
$4,005 |
|
|
Non-controlling interests |
$1,290 |
|
|
$605 |
|
|
The notes to these unaudited consolidated financial statements,
which are contained in the Fourth Quarter and Year End Report,
available on our website are an integral part of these consolidated
financial statements.
Consolidated Statements of Cash Flow
Barrick Gold Corporation |
|
For the
years ended December 31 (in millions of United States dollars) |
|
2020 |
|
2019 |
OPERATING ACTIVITIES |
|
|
Net
income |
$3,614 |
|
|
$4,574 |
|
|
Adjustments for the following
items: |
|
|
Depreciation |
|
2,208 |
|
|
|
2,032 |
|
|
Finance costs (note 14) |
|
364 |
|
|
|
500 |
|
|
Net impairment reversals (note 10) |
|
(269 |
) |
|
|
(1,423 |
) |
|
Income tax expense (note 12) |
|
1,332 |
|
|
|
1,783 |
|
|
Loss on currency translation |
|
50 |
|
|
|
109 |
|
|
Gain on sale of non-current assets (note 9) |
|
(180 |
) |
|
|
(441 |
) |
|
Remeasurement of Turquoise Ridge to fair value (note 4) |
|
— |
|
|
|
(1,886 |
) |
|
Change in working capital
(note 15) |
|
(308 |
) |
|
|
(357 |
) |
|
Other
operating activities (note 15) |
|
(381 |
) |
|
|
(1,113 |
) |
|
Operating cash flows before interest and income taxes |
|
6,430 |
|
|
|
3,778 |
|
|
Interest paid |
|
(295 |
) |
|
|
(333 |
) |
|
Income taxes paid1 |
|
(718 |
) |
|
|
(612 |
) |
|
Net cash provided by operating activities |
|
5,417 |
|
|
|
2,833 |
|
|
INVESTING ACTIVITIES |
|
|
Property, plant and
equipment |
|
|
Capital expenditures (note 5) |
|
(2,054 |
) |
|
|
(1,701 |
) |
|
Sales proceeds |
|
45 |
|
|
|
41 |
|
|
Divestitures (note 4) |
|
283 |
|
|
|
750 |
|
|
Investment sales
(purchases) |
|
220 |
|
|
|
(4 |
) |
|
Cash acquired in merger (note
4) |
|
— |
|
|
|
751 |
|
|
Other
investing activities (note 15) |
|
220 |
|
|
|
213 |
|
|
Net cash provided by (used in) investing
activities |
|
(1,286 |
) |
|
|
50 |
|
|
FINANCING ACTIVITIES |
|
|
Lease repayments |
|
(26 |
) |
|
|
(28 |
) |
|
Debt repayments |
|
(353 |
) |
|
|
(281 |
) |
|
Dividends (note 31) |
|
(547 |
) |
|
|
(548 |
) |
|
Funding from non-controlling
interests (note 32) |
|
11 |
|
|
|
140 |
|
|
Disbursements to
non-controlling interests (note 32) |
|
(1,367 |
) |
|
|
(421 |
) |
|
Other financing activities |
|
28 |
|
|
|
(1 |
) |
|
Net cash used in financing activities |
|
(2,254 |
) |
|
|
(1,139 |
) |
|
Effect of exchange rate changes on cash and
equivalents |
|
(3 |
) |
|
|
(1 |
) |
|
Net
increase (decrease) in cash and equivalents |
|
1,874 |
|
|
|
1,743 |
|
|
Cash
and equivalents at beginning of year (note 25a) |
|
3,314 |
|
|
|
1,571 |
|
|
Cash and equivalents at the end of year |
$5,188 |
|
|
$3,314 |
|
|
1 Income taxes paid excludes $203 million
(2019: $115 million) of income taxes payable that were settled
against offsetting VAT receivables.
The notes to these unaudited consolidated financial statements,
which are contained in the Fourth Quarter and Year End Report,
available on our website are an integral part of these consolidated
financial statements.
Consolidated Balance Sheets
Barrick Gold Corporation |
As at December 31, 2020 |
As at December 31, 2019 |
|
|
|
|
|
|
|
|
|
(in
millions of United States dollars) |
|
|
|
|
|
|
|
|
ASSETS |
|
|
Current assets |
|
|
Cash and equivalents (note
25a) |
$5,188 |
|
|
$3,314 |
|
|
Accounts receivable (note
18) |
|
558 |
|
|
|
363 |
|
|
Inventories (note 17) |
|
1,878 |
|
|
|
2,289 |
|
|
Other
current assets (note 18) |
|
519 |
|
|
|
565 |
|
|
Total current assets (excluding assets classified as
held-for-sale) |
|
8,143 |
|
|
|
6,531 |
|
|
Assets
classified as held-for-sale (note 4) |
|
— |
|
|
|
356 |
|
|
Total current assets |
|
8,143 |
|
|
|
6,887 |
|
|
Non-current assets |
|
|
Non-current portion of
inventory (note 17) |
|
2,566 |
|
|
|
2,300 |
|
|
Equity in investees (note
16) |
|
4,670 |
|
|
|
4,527 |
|
|
Property, plant and equipment
(note 19) |
|
24,628 |
|
|
|
24,141 |
|
|
Intangible assets (note
20a) |
|
169 |
|
|
|
226 |
|
|
Goodwill (note 20b) |
|
4,769 |
|
|
|
4,769 |
|
|
Deferred income tax assets
(note 30) |
|
98 |
|
|
|
235 |
|
|
Other
assets (note 22) |
|
1,463 |
|
|
|
1,307 |
|
|
Total assets |
$46,506 |
|
|
$44,392 |
|
|
LIABILITIES AND EQUITY |
|
|
Current liabilities |
|
|
Accounts payable (note 23) |
$1,458 |
|
|
$1,155 |
|
|
Debt (note 25b) |
|
20 |
|
|
|
375 |
|
|
Current income tax liabilities |
|
436 |
|
|
|
224 |
|
|
Other current liabilities (note 24) |
|
306 |
|
|
|
622 |
|
|
Total current liabilities |
|
2,220 |
|
|
|
2,376 |
|
|
Non-current liabilities |
|
|
Debt (note 25b) |
|
5,135 |
|
|
|
5,161 |
|
|
Provisions (note 27) |
|
3,139 |
|
|
|
3,114 |
|
|
Deferred income tax liabilities (note 30) |
|
3,034 |
|
|
|
3,091 |
|
|
Other liabilities (note 29) |
|
1,268 |
|
|
|
823 |
|
|
Total liabilities |
|
14,796 |
|
|
|
14,565 |
|
|
Equity |
|
|
Capital stock (note 31) |
|
29,236 |
|
|
|
29,231 |
|
|
Deficit |
|
(7,949) |
|
|
|
(9,722) |
|
|
Accumulated other comprehensive
loss |
|
14 |
|
|
|
(122) |
|
|
Other |
|
2,040 |
|
|
|
2,045 |
|
|
Total equity attributable to Barrick Gold Corporation
shareholders |
|
23,341 |
|
|
|
21,432 |
|
|
Non-controlling interests (note 32) |
|
8,369 |
|
|
|
8,395 |
|
|
Total equity |
|
31,710 |
|
|
|
29,827 |
|
|
Contingencies and commitments (notes 2, 17, 19 and 36) |
|
|
Total liabilities and equity |
$46,506 |
|
|
$44,392 |
|
|
The notes to these unaudited consolidated financial statements,
which are contained in the Fourth Quarter and Year End Report,
available on our website are an integral part of these consolidated
financial statements.
Consolidated Statements of Changes in Equity
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, 2020 |
1,777,927 |
|
$29,231 |
|
($9,722 |
) |
|
($122 |
) |
|
$2,045 |
|
|
$21,432 |
|
|
$8,395 |
|
|
$29,827 |
|
|
Net income |
— |
|
|
— |
|
|
2,324 |
|
|
|
— |
|
|
|
— |
|
|
|
2,324 |
|
|
|
1,290 |
|
|
|
3,614 |
|
|
Total other comprehensive income |
— |
|
|
— |
|
|
— |
|
|
|
136 |
|
|
|
— |
|
|
|
136 |
|
|
|
— |
|
|
|
136 |
|
|
Total comprehensive income |
— |
|
$ |
— |
|
$2,324 |
|
|
$136 |
|
|
$ |
— |
|
|
$2,460 |
|
|
$1,290 |
|
|
$3,750 |
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends (note 31) |
— |
|
|
— |
|
|
(547) |
|
|
|
— |
|
|
|
— |
|
|
|
(547) |
|
|
|
— |
|
|
|
(547) |
|
|
Issuance of 16% interest in Tanzania mines (note 21) |
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
238 |
|
|
|
238 |
|
|
Sale of Acacia exploration properties |
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(13) |
|
|
|
(13) |
|
|
|
13 |
|
|
|
— |
|
|
Issued on exercise of stock options |
99 |
|
|
1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
Funding from non-controlling interests (note 32) |
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
11 |
|
|
Disbursements to non-controlling interests (note 32) |
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,578) |
|
|
|
(1,578) |
|
|
Dividend reinvestment plan (note 31) |
164 |
|
|
4 |
|
|
(4) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Share-based payments |
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
8 |
|
|
|
— |
|
|
|
8 |
|
|
Total transactions with owners |
263 |
|
$5 |
|
($551 |
) |
|
$ |
— |
|
|
($5 |
) |
|
($551 |
) |
|
($1,316 |
) |
|
($1,867 |
) |
|
At December 31, 2020 |
1,778,190 |
|
$29,236 |
|
($7,949 |
) |
|
$14 |
|
|
$2,040 |
|
|
$23,341 |
|
|
$8,369 |
|
|
$31,710 |
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2019 |
1,167,847 |
|
$20,883 |
|
($13,453 |
) |
|
($158 |
) |
|
$321 |
|
|
$7,593 |
|
|
$1,792 |
|
|
$9,385 |
|
|
Net income |
— |
|
|
— |
|
|
3,969 |
|
|
|
— |
|
|
|
— |
|
|
|
3,969 |
|
|
|
605 |
|
|
|
4,574 |
|
|
Total other comprehensive income |
— |
|
|
— |
|
|
— |
|
|
|
36 |
|
|
|
— |
|
|
|
36 |
|
|
|
— |
|
|
|
36 |
|
|
Total comprehensive income |
— |
|
$ |
— |
|
$3,969 |
|
|
$36 |
|
|
$ |
— |
|
|
$4,005 |
|
|
$605 |
|
|
$4,610 |
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(218) |
|
|
|
— |
|
|
|
— |
|
|
|
(218) |
|
|
|
— |
|
|
|
(218) |
|
|
Merger with Randgold Resources Limited (note 4) |
583,669 |
|
|
7,903 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,903 |
|
|
|
872 |
|
|
|
8,775 |
|
|
Nevada Gold Mines JV with Newmont Goldcorp Corporation (note
4) |
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
1,645 |
|
|
|
1,645 |
|
|
|
5,910 |
|
|
|
7,555 |
|
|
Acquisition of 36.1% of Acacia Mining plc (note 4) |
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 |
|
|
1 Includes cumulative translation adjustments as at
December 31, 2020: $95 million loss (December 31, 2019:
$88 million loss).
2 Includes additional paid-in capital as at
December 31, 2020: $2,002 million (December 31, 2019:
$2,007 million).
The notes to these unaudited consolidated financial statements,
which are contained in the Fourth Quarter and Year End Report,
available on our website are an integral part of these consolidated
financial statements.
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
GOLDThe New York Stock Exchange
ABXThe Toronto Stock Exchange
Transfer Agents and Registrars
AST Trust Company (Canada)P.O. Box 700, Postal
Station BMontreal, Quebec H3B 3K3or American 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
Investor and Media RelationsKathy du Plessis+44
20 7557 7738barrick@dpapr.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 “believe”, “expect”, “anticipate”, “vision”, “target”,
“plan”, “opportunities”, “objective”, “pursuit”, “assume”,
“intend”, “intention”, “project”, “goal”, “continue”, “budget”,
“estimate”, “potential”, “strategy”, “prospective”, “following”,
“future”, “aim”, “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; Barrick’s forward-looking
production guidance; estimates of future cost of sales per ounce
for gold and per pound for copper, total cash costs per ounce and
C1 cash costs per pound, and all-in sustaining costs per
ounce/pound; cash flow forecasts; projected capital, operating and
exploration expenditures; mine life and production rates; Barrick’s
engagement with local communities to manage the Covid-19 pandemic;
potential mineralization and metal or mineral recoveries; our
ability to identify, invest in and develop potential Tier One, Tier
Two and Strategic Assets; our strategies and plans with respect to
environmental matters, including climate change, greenhouse gas
emissions reduction targets, and tailings storage facility
management projects; our future plans, growth potential, financial
strength, investments and overall strategy, including with respect
to dispositions of non-core assets, maximizing the long-term value
of our strategic copper business, and our participation in future
consolidation of the gold industry; the potential impact of
proposed changes to Nevada’s Net Proceeds of Minerals tax on Nevada
Gold Mines and Barrick’s engagement with affected stakeholders to
reach a solution that secures the long-term viability of the Nevada
mining industry; our plans and expected completion and benefits of
our growth projects, including construction of twin exploration
declines at Goldrush, the Turquoise Ridge Third Shaft, Pueblo Viejo
plant and tailings facility expansion, Bulyanhulu production
ramp-up, Zaldívar chloride leach project, and Veladero power
transmission project; our ability to convert resources into
reserves; the proposed return of capital distribution, including
the timing and amount of the distribution; the partnership between
Barrick and the Government of Tanzania (“GoT”) and the agreement to
resolve all outstanding disputes between Acacia and the GoT;
Barrick and Barrick Niugini Limited’s response to the government of
Papua New Guinea’s decision not to extend Porgera’s special mining
lease and to the Internal Revenue Commission’s proposed tax
adjustments; the agreement in principle regarding arrangements for
a new Porgera partnership with Papua New Guinea, and efforts to
reach a binding memorandum of agreement; the duration of the
temporary suspension of operations at Porgera; asset sales, joint
ventures and partnerships; our economic and social development
priorities within our host communities, including local hiring,
procurement, training and community development initiatives; our
digital innovation initiatives; and expectations regarding future
price assumptions, financial performance and other outlook or
guidance.
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; 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; non-renewal of key licences by
governmental authorities, including non-renewal of Porgera’s
Special Mining Lease; 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; 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; 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; risks associated with new diseases, epidemics and
pandemics, including the effects and potential effects of the
global Covid-19 pandemic; 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; whether benefits expected from recent
transactions are realized; 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. Barrick
also cautions that its 2021 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. 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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