Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) – Barrick’s
industry-leading portfolio of gold and copper assets is projected
to show strong growth over the next five and 10 years,
president and chief executive Mark Bristow told an investor meeting
here today.
The unlocking of value at the Pueblo Viejo gold
mine in the Dominican Republic, following the finalization of the
location for the new tailings storage facility, will support that
growth, he said, with the latest geological model for its current
$2.1 billion expansion project1 now showing the potential for
upgrading 2 million ounces of inferred resources to indicated
which, together with approximately 10 million ounces of
measured and indicated resources, are expected to convert to proven
and probable reserves2.
“Others buy, Barrick builds. This investment is
expected to extend the Tier One3 mine’s life to beyond 2040,
at an average annual production rate of more than 800,000 ounces1,”
Bristow said.
“There’s also more to come from our three
Tier One assets in Nevada, where we hold 8,000 square
kilometers of prospective land in one of the world’s most
richly-endowed gold districts. In Africa, our two Tier One
mines continue to deliver geologically driven growth, while the two
Tanzanian mines we took over have been transformed into successful
operations and have the potential to achieve Tier One status as a
combined complex. Meanwhile, we’re well on our way to building a
Tier One copper business as a result of the Reko Diq project
in Pakistan and the Lumwana super pit in Zambia.”
Bristow said Barrick’s performance since its merger
with Randgold three years ago had been driven by a clear and
disciplined long-term strategy, focused on leveraging its
Tier One assets, and finding more. Gold and copper production
has met or exceeded guidance each year since the merger. Strong
cash flow generation has turned net debt of $4.2 billion into
net cash of $145 million at the end of last quarter4. The
strong balance sheet has enabled the company to deliver
peer-leading returns to shareholders within the framework of a
performance-linked dividend policy. Brownfields exploration
continues to replace reserves depleted by mining, and the search
for new discoveries has been extended across Barrick’s expanding
global footprint. The company already operates in 18 countries
across four continents.
“Barrick was a leader in sustainability long before
ESG became a key investment criterion. This means that we haven’t
had to scramble to comply with new requirements and expectations —
the ability to satisfy them was already embedded in every aspect of
our business. We have, however, refined our approach to
sustainability so that it holistically embraces the linked
challenges of poverty, climate change and biodiversity. It includes
a detailed, demonstrable roadmap based on climate science, to the
achievement of a 30% reduction in greenhouse gas emissions by
20305, against a 2018 baseline, with the ultimate goal of net zero
emissions by 2050,” Bristow said.
Enquiries:
President and CEOMark Bristow+1 647 205 7694+44 788
071 1386
Senior EVP and CFOGraham Shuttleworth+1 647 262
2095+44 779 771 1338
Investor and Media RelationsKathy du Plessis+44 20
7557 7738Email: barrick@dpapr.com
Endnotes
- On a 100% basis.
The initial capital estimate for the Pueblo Viejo plant expansion
and mine life extension project has been updated and is now $2.1
billion (previously $1.4 billion). As of September 30, 2022, $718
million has been incurred on the project.
- Refer to the
Technical Report on the Pueblo Viejo mine, Sanchez Ramirez
Province, Dominican Republic, dated March 19, 2018, and filed on
SEDAR at www.sedar.com and EDGAR at www.sec.gov on March 23,
2018.
- 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. A Tier One Copper Asset is
an asset with a reserve potential of greater than 5 million tonnes
of contained copper and C1 cash costs per pound in the lower half
of the industry cost curve.
- Net debt of $4.2
billion is calculated as debt ($5,738 million) less cash and
equivalents ($1,571 million) as of December 31, 2018. Net cash of
$145 million is calculated as cash and equivalents ($5,240 million)
less debt ($5,095 million) as of September 30, 2022
- We expect to reduce GHG emissions by
at least 30% by 2030 against a 2018 baseline, while maintaining a
steady production profile.
Technical Information
The scientific and technical information contained
in this press release has been reviewed and approved by Chad
Yuhasz, P.Geo, Mineral Resource Manager, Latin America & Asia
Pacific; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral
Resource Management and Evaluation Executive; and John Steele, CIM,
Metallurgy, Engineering and Capital Projects Executive – each a
“Qualified Person” as defined in National Instrument 43-101 –
Standards of Disclosure for Mineral Projects.
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”,
“strategy”, “target”, “plan”, “guidance”, “project”, “continue”,
“estimate”, “potential”, “progress”, “future”, “prospect”, “focus”,
“more to come”, “building”, “will”, “could”, “would”, “should”,
“may” and similar expressions identify forward-looking statements.
In particular, this press release contains forward-looking
statements including, without limitation, with respect to:
Barrick’s forward-looking production guidance, including our five
and ten year outlooks for gold and copper; 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; projected capital, operating and exploration
expenditures; our ability to convert resources into reserves and
replace reserves net of depletion from production; mine life and
production rates; Barrick’s global exploration strategy and planned
exploration activities; Barrick’s copper strategy; our plans and
expected completion and benefits of the Pueblo Viejo plant
expansion and mine life extension project, including the potential
for conversion of resources to reserves and increased short-term
production levels, as well as updated capital cost estimates for
the project; potential mineralization and metal or mineral
recoveries; the timeline and process for the reconstitution of a
joint venture to carry out the future development and operation of
the Reko Diq project; our pipeline of high confidence projects at
or near existing operations; expected production and cost levels
for the North Mara and Bulyanhulu mines and their potential to
achieve Tier One status as a combined complex; Lumwana’s potential
for future growth and ability to further extend the life of mine,
including through the development of a super pit; Barrick’s
strategy, plans, targets and goals in respect of environmental and
social governance issues, including greenhouse gas emissions
reduction targets; Barrick’s performance dividend policy; 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); risks
associated with projects in the early stages of evaluation and for
which additional engineering and other analysis is required; risks
related to the possibility that future exploration results will not
be consistent with the Company’s expectations, that quantities or
grades of reserves will be diminished, and that resources may not
be converted to reserves; 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; changes in
mineral production performance, exploitation and exploration
successes; 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; the speculative nature of
mineral exploration and development; lack of certainty with respect
to foreign legal systems, corruption and other factors that are
inconsistent with the rule of law; 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 or other
countries in which Barrick does or may carry on business in the
future; risks relating to political instability in certain of the
jurisdictions in which Barrick operates; timing of receipt of, or
failure to comply with, necessary permits and approvals, including
approval of the final location of the additional tailings storage
facility for Pueblo Viejo following submission of the Environmental
and Social Impact Assessment in the Dominican Republic; non-renewal
of or failure to obtain key licenses by governmental authorities;
failure to comply with environmental and health and safety laws and
regulations; contests over title to properties, particularly title
to undeveloped properties, or over access to water, power and other
required infrastructure; the liability associated with risks and
hazards in the mining industry, and the ability to maintain
insurance to cover such losses; increased costs and physical risks,
including extreme weather events and resource shortages, related to
climate change; damage to the Company’s reputation due to the
actual or perceived occurrence of any number of events, including
negative publicity with respect to the Company’s handling of
environmental matters or dealings with community groups, whether
true or not; risks related to operations near communities that may
regard Barrick’s operations as being detrimental to them;
litigation and legal and administrative proceedings; operating or
technical difficulties in connection with mining or development
activities, including geotechnical challenges, tailings dam and
storage facilities failures, and disruptions in the maintenance or
provision of required infrastructure and information technology
systems; increased costs, delays, suspensions and technical
challenges associated with the construction of capital projects;
risks associated with working with partners in jointly controlled
assets; risks related to disruption of supply routes which may
cause delays in construction and mining activities, including
disruptions in the supply of key mining inputs due to the invasion
of Ukraine by Russia; risk of loss due to acts of war, terrorism,
sabotage and civil disturbances; risks associated with artisanal
and illegal mining; risks associated with Barrick’s infrastructure,
information technology systems and the implementation of Barrick’s
technological initiatives; 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; the
impact of inflation, including global inflationary pressures driven
by supply chain disruptions caused by the ongoing Covid-19 pandemic
and global energy cost increases following the invasion of Ukraine
by Russia; adverse changes in our credit ratings; fluctuations in
the currency markets; changes in U.S. dollar interest rates; risks
arising from holding derivative instruments (such as credit risk,
market liquidity risk and mark-to-market risk); risks related to
the demands placed on the Company’s management, the ability of
management to implement its business strategy and enhanced
political risk in certain jurisdictions; uncertainty whether some
or all of Barrick’s targeted investments and projects will meet the
Company’s capital allocation objectives and internal hurdle rate;
whether benefits expected from recent transactions being realized;
business opportunities that may be presented to, or pursued by, the
Company; our ability to successfully integrate acquisitions or
complete divestitures; risks related to competition in the mining
industry; employee relations including loss of key employees;
availability and increased costs associated with mining inputs and
labor; and risks associated with diseases, epidemics and pandemics,
including the effects and potential effects of the global Covid-19
pandemic. Barrick also cautions that its 2022 guidance, as well as
its five and ten year outlooks for gold and copper, 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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