Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) remains on track to
achieve its 2022 production guidance despite some short-term
operational challenges and rising input costs, president and chief
executive Mark Bristow said today.
Presenting the company’s third-quarter results, Bristow said a
steady performance had paved the way for a stronger Q4, driven by
access to higher grades at Nevada Gold Mines (NGM). Its exploration
drive continues to build momentum and Barrick is set once again to
grow its reserves net of depletion this year.
Operating cash flow for the quarter was $758 million and was
supplemented by the sale of non-core royalty assets. The robust
balance sheet supported a $0.10 per share base dividend plus a
$0.05 per share performance dividend for a total of $0.15 per share
for the quarter. Under the $1 billion share buyback program, $322
million1 of shares have been repurchased to date, or approximately
1% of Barrick’s issued and outstanding shares at the time the
program was announced.
“Barrick’s core strategy is one of long-term value creation and
our focus remains firmly on this goal. We continue to maintain a
strong balance sheet and to develop our wealth of organic growth
projects. We also keep a sharp lookout for M&A opportunities,
but those that could pass our strict investment filters are few and
far between,” Bristow said.
“Sustainability is the cornerstone of our
business, as it has been for the past 20 years. We have adopted a
holistic and integrated approach to this critical issue, and are
not only prioritizing the environment portion of ESG metrics. This
is more attuned to the ethical and developmental needs of many of
our host countries, and is already delivering results,” Bristow
said.
Highlights of the quarter include the completion
of the public comment phase of NGM’s Goldrush project and
continuing progress with the Pueblo Viejo expansion project,
designed to extend the life of the mine beyond 2040 at an annual
production rate in excess of 800,000 ounces of gold (100% basis).14
The definitive agreements on the Reko Diq copper-gold project in
Pakistan have been finalized and the process now moves onto its
legalization and closing stage, with potential production from
2027/2028.
Barrick continues to build its copper portfolio
with strong performances from Jabal Sayid in Saudi Arabia and
Lumwana in Zambia, where ongoing exploration is pointing to the
potential for a superpit which could extend the mine’s life to
2060.
At NGM, the North Leeville target has reported a
maiden inferred resource of 700,000 ounces (100% basis as of
December 31, 2021)18 and is set for further growth. Bristow says
Barrick is looking at other opportunities in Nevada and elsewhere
in North America. In Africa, key structures in the Loulo district
are demonstrating the potential for further discoveries and in the
Democratic Republic of Congo, Kibali’s prolific KCD structure
continues to deliver growth.
“Barrick is successfully executing its strategy
to create the world’s most valued gold and copper mining company
through the performance of its peerless asset portfolio and a
pipeline of high-quality organic growth prospects. This is evident
in its industry-leading and sustainable shareholder returns,
delivered in a disciplined dividend framework,” Bristow said.
Key Performance Indicators
Financial and Operating Highlights
Financial Results |
Q3 2022 |
Q2 2022 |
Q3 2021 |
Realized gold price5,6 ($ per ounce) |
1,722 |
1,861 |
1,771 |
Net earnings ($ millions) |
241 |
488 |
347 |
Adjusted net earnings3 ($
millions) |
224 |
419 |
419 |
Net cash provided by operating
activities ($ millions) |
758 |
924 |
1,050 |
Free cash flow7 ($
millions) |
(34 |
169 |
481 |
Net earnings per share
($) |
0.14 |
0.27 |
0.20 |
Adjusted net earnings per
share3 ($) |
0.13 |
0.24 |
0.24 |
Attributable capital expenditures8,9 ($ millions) |
609 |
587 |
456 |
Operating Results |
Q3 2022 |
Q2 2022 |
Q3 2021 |
Gold |
|
|
|
Production6 (000s of
ounces) |
988 |
1,043 |
1,092 |
Cost of sales (Barrick's
share)6,10 ($ per ounce) |
1,226 |
1,216 |
1,122 |
Total cash costs6,11 ($
per ounce) |
891 |
855 |
739 |
All-in
sustaining costs6,11 ($ per ounce) |
1,269 |
1,212 |
1,034 |
Copper |
|
|
|
Production6 (millions of
pounds) |
123 |
120 |
100 |
Cost of sales (Barrick's
share)6,10 ($ per pound) |
2.30 |
2.11 |
2.57 |
C1 cash costs6,12 ($ per
pound) |
1.86 |
1.70 |
1.85 |
All-in
sustaining costs6,12 ($ per pound) |
3.13 |
2.87 |
2.60 |
Best Assets
- Steady Q3 performance with grade
uplift in Q4 to drive delivery of 2022 gold production targets
- Strong production performance at
Lumwana and Jabal Sayid has copper trending at midpoint of
guidance
- Another milestone reached at
Goldrush with conclusion of draft EIS public comment period
- New exploration management team
builds momentum with strong results from a range of exciting
targets across portfolio
- On track to grow reserves net of depletion by year end
Leader in Sustainability
- Renewed focus on Visible Felt
Leadership shows improvement in safety at NGM
- All NGM sites retained ISO 14001 and
ISO 45001 accreditation during the quarter
- Zero Class 1 or high significance
environmental incidents13
- Progress against Global Industry
Standard on Tailings Management and against self-assessment plans
completed for all ‘very high’ and ‘extreme’ consequence
classifications
- Pueblo Viejo new tailings storage facility Environmental and
Social Impact Assessment (ESIA) completed to the Dominican
Government’s Terms of Reference
Delivering Value
- Operating cash flow of $758 million
plus further value capture from sale of royalty portfolio
- Net earnings per share of $0.14 and
adjusted net earnings per share3 of $0.13 for the quarter
- Net cash of $145 million2
results in a $0.15 per share dividend for Q3 2022, inclusive of
$0.05 per share performance dividend
- A further 9 million shares repurchased under buyback program
(~$141 million) in Q3 2022 bringing the total year-to-date to $322
million4
Q3 2022 Results PresentationWebinar and
Conference Call
President and CEO Mark Bristow will host a live presentation of
the results today at 11:00 EDT, with an interactive webinar linked
to a conference call. Participants will be able to ask
questions.
Go to the webinarUS and Canada (toll-free), 1 800 319 4610UK
(toll-free), 0808 101 2791International (toll), +1 416 915 3239
The Q3 2022 presentation materials will be available on
Barrick’s website at www.barrick.com and the webinar will remain on
the website for later viewing.Q3 DIVIDEND OF $0.15 PER
SHARE DECLARED, LEADING TO RECORD ANNUAL RETURNS IN
2022
Barrick today announced the declaration of a dividend of
$0.15 per share for the third quarter of 2022.
The dividend is consistent with the Company’s Performance
Dividend Policy announced at the start of the year. The Q3 2022
dividend will be paid on December 15, 2022 to shareholders of
record at the close of business on November 30, 2022.
In addition to the enhanced dividends declared so far in 2022,
Barrick has continued to repurchase shares under the share buyback
program that was announced in February of this year. As of the end
of Q3, Barrick has repurchased 18 million shares1 under the
program, or approximately 1% of Barrick’s issued and outstanding
shares at the time the program was announced, for net cash of $322
million1, including $141 million paid during Q3 2022.
Consequently, through the end of Q3 2022, $1.2 billion of cash
has been used for dividends and share buybacks during the year.
With the payment of the dividend announced today to be made in Q4
2022, the return to shareholders in 2022 in the form of dividends
and share buybacks is expected to exceed the record $1.4 billion of
distributions made in 2021.
“The combination of the performance dividend policy and share
buyback program that were introduced earlier this year has allowed
us to provide significant benefits to our shareholders,” says
senior executive vice-president and chief financial officer Graham
Shuttleworth. “Anchored by our solid operating performance and cash
flows, we continue to maintain a robust balance sheet whilst
simultaneously providing our shareholders with meaningful
returns.”
BARRICK UPDATES TAILINGS DISCLOSURE
Barrick continues to progress towards compliance with
the new Global Industry Standard on Tailings Management (GISTM), in
line with its commitment as one of the main supporters of this
project.
Long a leader in the field of tailings management, Barrick has
maintained an internal standard that has been updated regularly in
line with regulatory requirements, industry guidelines and best
practices. This experience enabled it to make a significant
contribution to the development of the GISTM. Its tailings storage
facilities (TSFs) have been subject to an independent third-party
review for the past 20 years.
In the course of this year, Barrick has conducted external and
internal reviews of its tailings storage facilities against its
internal standard and the GISTM. Based on these reviews it has
taken a range of actions to further reduce the potential risk they
present. These include the installation of automated data
acquisition systems at numerous sites. Barrick’s TSF disclosure has
been updated and can be found on our website at
www.barrick.com/sustainability.
ISELA COSTANTINI JOINTS BARRICK BOARD
Isela Costantini has been appointed to Barrick’s Board
of Directors as an independent director.
Ms Costantini has over 25 years of experience in international
business and is currently the chief executive of Grupo Financiero
GST, a privately held asset management company that ranks among
Argentina’s leading financial groups. Prior to that, she was
president and CEO of Argentina’s national airline, Aerolineas
Argentina, as well as president and general director, Argentina,
Paraguay and Uruguay, for General Motors.
Executive chairman John Thornton said Ms Costantini would bring
a valuable perspective to the board with her wealth of experience
in business, government and regulatory affairs in Latin
America.
NGM: NOW FOR THE NEXT VALUE-CREATION PHASE
The successful merger of two different sets of assets,
systems, people and practices into the fully integrated Nevada Gold
Mines (NGM) has been a classic case of the whole exceeding the sum
of its parts, says Mark Bristow.
Bristow, the chairman of NGM and president and CEO of majority
owner Barrick, says the combination of Barrick’s Nevada assets’
reserves and grades with Newmont’s infrastructure has delivered
industry-leading growth and performance. In the three years since
the establishment of the joint venture, it has produced 10 million
ounces of gold (on a 100% basis) and added 14.7 million ounces of
proven and probable reserves (on a 100% basis before
depletion)15,17,18 as well as 8.5 million ounces of inferred
resources (on a 100% basis).16,17,18
Greatly improved knowledge of the orebodies supports robust
10-year mine plans and has increased the pre-merger life of mine,
and new opportunities for innovations and discoveries that will
support a 15-year plan have been identified.
“As far as the first phase of NGM’s development is concerned, I
think we can safely say: Mission Accomplished,” says Bristow.
“The foundational team did a great job and NGM now needs a new
leadership team to oversee its next stage of long-term value
creation. At the end of the past quarter, Peter Richardson
officially succeeded Greg Walker as executive managing director and
Henri Gonin, previously general manager at Carlin, was appointed
head of operations. Other senior appointments, internal as well as
external, make up the rest of a corporate structure which is fit
for NGM’s new purpose.”
NGM set out to be a thoroughly Nevadan business, the partner of
choice for the state as well as its communities. Since September
2020, it has contributed more than $5.5 million to Nevadan causes
through its five community development committees (CDCs). Each of
these covers a different region of Nevada, including the Native
American community. NGM’s support is focused on economic
development, education, environment, health and cultural
heritage.
NGM’s top priority is to create a “Zero-Harm” workplace. A
steady decline in the Lost Time Injury Frequency Rate19 and Total
Recordable Injury Frequency Rate20 in 2022 delivered NGM’s best
safety quarter of the year in the three months to September.
BARRICK AND PAKISTAN REVIEW PROGRESS ON REKO DIQ
PROJECT
Mark Bristow says the process of completing the final
agreements and legal steps that would enable the development of the
Reko Diq project is making steady progress.
Once the transaction is completed, Reko Diq, one of the largest
undeveloped copper-gold deposits in the world, will be owned 50% by
Barrick, 25% by Balochistan province and 25% by major Pakistani
state-owned enterprises (SOEs).
He was speaking after a four-day visit to Pakistan in October
2022 during which he and the project team held discussions with
prime minister Shehbaz Sharif and Balochistan chief minister Abdul
Quddus Bizenjo and their teams, as well as Barrick’s SOE partners.
With the approval of Pakistan president Dr Arif Alvi, the necessary
documents for the Presidential Reference were filed on October 15,
2022 with the country’s supreme court, a significant process
milestone.
During the course of the trip, the Barrick team also visited
Balochistan’s Chagai District, which hosts Reko Diq, to brief local
leaders and community stakeholders on the project. Reko Diq will
bring enormous benefits to the region in the form of employment,
skills and economic development, as well as community initiatives
focused on food security, environmental management and access to
healthcare, education and potable water.
Bristow says Barrick is setting up community development
committees (CDCs) to identify priority projects and supervise their
implementation.
“Barrick has been built on successful partnerships with our host
countries, and these encompass the full range of stakeholders, from
governments through suppliers to the communities around our mines.
Our CDC model provides a transparent and accountable mechanism for
tailoring development programs to the needs of these communities
with their full participation,” he says.
Once the current legal processes have been finalised, Barrick
will complete its update of the feasibility study, which currently
envisages an open-pit operation with a life of more than 40 years.
It is envisaged that the project will be built in two phases at an
initial estimated capital cost21 of approximately $7 billion and is
expected to go into production between 2027 and 2028.
While in Pakistan, Bristow announced that Barrick was donating
an additional $150,000 to the Balochistan flood relief fund,
bringing the company’s total contribution to $300,000.
INCORPORATION OF NEW PORGERA LIMITED ADVANCES MINE
RESTART
The incorporation of New Porgera Limited (NPL) on
September 22, following execution of the New Porgera Shareholders
Agreement by Barrick (Niugini) Limited, Kumul Mineral Holdings
Limited and Mineral Resources Enga, marked an important step
towards the long-delayed restart of the Porgera mine.
Once certain conditions are fulfilled, NPL intends to apply for
a new Special Mining Lease (SML) in coming weeks.
In Papua New Guinea for quarterly operational reviews, Mark
Bristow said that New Porgera will work with the State and the
Mineral Resources Authority (MRA) to ensure that the SML
application process proceeded without delay and in accordance with
the Mining Act and the Porgera Project Commencement Agreement
(PPCA).
“The application and early approval of a new SML is the goal
that all Porgera stakeholders should be striving for. The mine has
sat idle for far too long — more than two and a half years —
depriving landowners and the communities of Porgera of employment
and other essential benefits that the mine delivered successfully
for 30 years,” said Bristow.
Together with Barrick’s executives, Bristow travelled to Porgera
to kick-off the security forum alongside the Mining Minister Sir
Ano Pala, Porgera MP Maso Karipe, SML and Lease for Mining Purpose
landowners, community members, women’s groups and business leaders.
Also in attendance was the Enga Provincial Police Commander and
representatives of the Enga Provincial Government, Porgera District
and PNG Defence Force.
“We had a constructive kick-off meeting in Porgera and everyone
agreed that law and order is crucial to the restart of Porgera mine
and the long-term future of the Porgera District. The parties will
continue to meet and collaborate on law and order initiatives and
their implementation. All landowners and community leaders have
acknowledged the urgent need for leadership at ground level to
complement the work being done by security forces. There was a call
from the landowners for the signing of a peace agreement between
rival clans in the Porgera Valley and the need for a government
endorsed police operation to address the current lawlessness in
Porgera,” said Bristow.
As a sign of Barrick’s commitment to restart the operation, the
company is building a dedicated team, comprised of a majority of
Papua New Guineans, to get the mine up and running so that the
people of Porgera can finally see the signs of Porgera’s revival
that they have been waiting for. To date, Barrick and Zijin have
funded $391 million solely for care and maintenance.
VELADERO CONTINUES TO EXPLORE AND STRENGTHEN ITS
PARTNERSHIP WITH THE COMMUNITY
But Warns That In-Country Conditions Could Adversely
Affect Mining Industry Viability
The Veladero gold mine has reached its 17th anniversary
since first gold in October 2005 and the company remains committed
to improving the asset, building on strong partnerships with the
local community, and exploring to increase its
resources.
Mark Bristow said recent integrated work from the exploration
team in the Veladero district had identified four high interest
targets that would be tested with drilling campaigns that started
in October 2022.
Veladero will also launch four new Community Development
Committees (CDCs) in the provinces of Iglesia and Jáchal to further
develop an open partnership with local communities, bringing the
total CDCs to six, and increasing the frequency of participatory
environmental monitoring. The role of the CDCs is to allocate the
community investment budget to projects prioritized by local
stakeholders, with each committee made up of a mix of local leaders
and community members.
“We call San Juan our home and since 2019 we have significantly
improved our relations with all stakeholders based on our DNA of
open and transparent communication. I’m thrilled to see this
commitment expand with the new CDCs in our neighboring communities
of Iglesia and Jáchal,” Bristow said.
Another important initiative is to enhance environmental
participatory monitoring. The first of these took place at the
start of October when water quality samples were collected at
Veladero's Compliance Point by community members and analyzed at a
certified laboratory. Over the next six months, monitoring will
occur monthly and then quarterly, significantly increasing
participation from the current annual frequency.
In terms of value creation, the procurement spend with local
community suppliers reached US$22 million in the last 12 months.
This has generated new opportunities for local suppliers such as
earthworks, construction, manufacturing of grinding balls, glass
cutting, hardware, mining road maintenance and cargo
transportation, among others. At the same time, the company has
developed an incubation program for non-mining related small
businesses, which has produced about 60 initiatives in the last
three years.
“We are exploring in the San Juan province and across the
country, and at the same time, we have raised concerns about the
mining industry's viability. At Veladero, we have observed how the
current financial situation in Argentina, with currency
restrictions, inflation, and taxation, combines with the global
financial crisis to create risks for the mine plan. As partners, we
urgently need to work together for a sustainable long-term future,”
Bristow said.
FURTHER GROWTH TARGETED IN TANZANIA
With North Mara and Bulyanhulu set to achieve a combined
production in excess of 500,000 ounces22
for the second year running, Barrick is looking to expand
its East African footprint from this base.
Mark Bristow says the resurrection of these moribund mines and
their transformation into an asset with the potential to be
included in Barrick’s elite Tier One23 portfolio as a combined
complex was a remarkable success story.
“Our groundbreaking Twiga partnership with the Tanzanian
government not only settled its long-running disputes with the
mines’ previous operators but has established a model for mutually
beneficial cooperation between miners and their host countries,
particularly in Africa. By demonstrating that Tanzania is an
investor-friendly destination it also augurs well for the future of
the country’s mining industry,” he said.
Both North Mara and Bulyanhulu have been ramping up production,
with North Mara hitting a record 505,000 tonnes of ore and waste
mined last quarter.22 It continues to optimize the underground
operation while the change to an owner-mining strategy has boosted
the expansion of both the mine and open pit operations. At
Bulyanhulu, the development of the main declines to access the Deep
West zone of the orebody started last quarter. The production
ramp-up at both mines is being supported by fleet upgrades.
“We continue to target further growth through reconnaissance and
the consolidation of key licences. Extension opportunities are
being assessed along the Gokona strike and throughout the
Bulyanhulu Inlier. Results from the deep drilling at Gokona are
pointing to a significant potential for extending North Mara’s
life,” Bristow said.
“In addition to the brownfields exploration designed to maintain
the positive trend on resource expansion and conversion at the two
mines, we are also looking further afield. A better understanding
of the region’s geological architecture will improve our ability to
discover new world-class development opportunities in our areas of
interest.”
In line with Barrick’s localization policy, Tanzanians make up
96% of the mines’ workforces, with 45% drawn from the communities
surrounding the mines. Host country nationals account for 58% of
the senior management. During the past quarter, the mines spent
$339 million with Tanzanian suppliers and service providers. Since
it took over the mines in 2019, Barrick has contributed over $2.1
billion to the Tanzanian economy.
LUMWANA SHOWS BARRICK’S COMMITMENT TO
COPPER
The transformation of Lumwana from a marginal copper
asset into a world-class operation demonstrates the commitment of
Barrick to expanding its copper holdings in Africa and
globally.
Mark Bristow says since 2019, Lumwana’s fortunes had been turned
around completely. Its life has been extended and it has been built
into a profitable business, with significant growth opportunities.
A solid year to date performance has kept it on track to achieve
its annual production guidance.
Now one of Zambia’s largest copper producers, it employs more
than 4,400 people, 99.3% of them Zambian nationals. It has an
exceptional safety record, with no fatalities since 2016 and a Lost
Time Injury Frequency Rate19 of less than 1.0% over the past 10
years.
“As a lower-grade mine, Lumwana is volume-driven and there is a
strong focus on driving down operational costs by achieving
efficiencies through scaled operations. This year’s production has
already benefited from the improved runtimes provided by a new
fleet of trucks and shovels. The planned upgrade of the conveyor
system will secure steady ore delivery to the plant, boosting
throughput and production next year,” Bristow said.
“Promising drill results at the Lubwe satellite target are
increasing our confidence that we will be able to develop a super
pit and still keep producing at today’s rates and more. Should the
super pit prove viable, it will substantially extend the mine’s
life with a two year pre-feasibility study scheduled to commence in
2023. In addition to Lubwe, the assessment of the Kamaranda and
Kababisa prospects is ongoing with drill programmes planned for the
fourth quarter and potential to add additional satellites. It’s
worth noting that the government’s new mineral royalty tax regime,
scheduled to come into effect in January next year, will unlock
additional free cash flow for Barrick, allowing us to reinvest in
Lumwana.”
EXPLORATION SUCCESS SECURES KIBALI’S FUTURE
The ability of Africa’s largest gold mine to replace its
reserves beyond depletion will secure its position as one of
Barrick’s Tier One assets well into the future.
Mark Bristow says the 13-year-old mine, which has just improved
its performance for the third consecutive quarter, still had an
enormous upside. With its exploration prospect pipeline continuing
to expand, it was well set to maintain its business plan for at
least another 10 years.
Kibali’s underground operations are being further extended by
two years through the addition of the 11,000 Lode to the mine plan.
This lode continues to deliver promising results, unlocking
additional value, and remains open down plunge. Drilling is also
under way at the Mengu Hill, Agbarabo, Rhino, Zambula and Makoro
targets which are showing potential as additional underground and
open pit satellites.
Bristow said with an in-country investment of $4.2 billion,
Kibali had made a significant contribution to the Congolese state’s
coffers. More importantly, it had transformed the country’s
previously undeveloped north-eastern region into a thriving new
economic frontier.
During the past quarter, minister of mines HE Antoinette N'Samba
Kalambayi launched the steering committee which will manage
Kibali’s social development fund, based on 0.3% of the mine’s
annual turnover. An amount of $13.7 million, accrued over the past
three years, has already been earmarked for community projects
which will be launched this year. The new 2,500-seat Catholic
church in Kokiza has recently been officially handed over to and
accepted by the Diocese and its approximately 30,000 strong
congregation, who were resettled in the new village between 2010
and 2016.
Barrick also continues to invest in the future of Africa’s
biodiversity with the planned reintroduction of 76 white rhinos to
the Garamba National Park, a critical move in the long-term plan to
protect this endangered species.
DELIVERING 25 YEARS OF VALUE TO MALI, WITH MORE TO
COME
Barrick’s Loulo, Gounkoto and the former Morila mines
have contributed $8.7 billion to the Malian economy in the 25 years
the company has been in the country and over the past decade have
accounted for between 5% and 10% of its GDP.
Mark Bristow says that throughout Barrick’s long partnership
with Mali, it had supported the country during some difficult times
in its history. Its relationship with successive governments
continues to be mutually beneficial, with the Loulo-Gounkoto
complex — one of the company’s elite Tier One assets — on track to
meet its 2022 production guidance.
“In line with our long-term commitment to Mali, we continue to
invest in exploration to extend the life of the complex, which
regularly more than replaces the gold it mines each year. The Loulo
district is still delivering high-quality targets and we’re
upgrading the complex’s infrastructure to support both open pit
pushbacks and extensions at Yalea and Gara. In the meantime, the
new Gounkoto underground mine is progressing its development
towards scheduled commencement of stoping next year,” he said.
Bristow noted that Loulo-Gounkoto was an outstanding example of
Barrick’s policy of recruiting and developing the people of its
host countries. Malian nationals account for 95% of the complex’s
workforce and they are led by an all-Malian management team.
Similarly, it has invested in the growth of local business
partners, ranging from key contractors to fuel and lubricant
suppliers. In the year to date, it has spent $395 million with
these partners, representing 80% of its total purchases.
Loulo-Gounkoto has also significantly improved the quality of
life in its surrounding communities through its investment in
projects designed to provide them with access to healthcare,
education, food security and potable water. A local
entrepreneurship programme has directly created more than 1,200
jobs.
Malaria remains one of Africa’s biggest health problems and
Loulo-Gounkoto is taking aggressive action to reverse the recent
rise in the infection rate after a long period in which it steadily
decreased. This includes a door-to-door awareness campaign in the
local villages, a workshop held alongside the country’s national
director of malaria control, close cooperation with regional
healthcare authorities and working with other mining companies to
identify and leverage synergies in the various malaria response
plans.
Appendix 12022
Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS |
|
2022 forecast attributable production (000s oz) |
2022 forecast cost of sales10 ($/oz) |
2022 forecast total cash costs11 ($/oz) |
2022 forecast all-in sustaining costs11 ($/oz) |
Carlin (61.5%)24 |
950 - 1,030 |
900 - 980 |
730 - 790 |
1,020 - 1,100 |
Cortez (61.5%)25 |
480 - 530 |
970 - 1,050 |
650 - 710 |
1,010 - 1,090 |
Turquoise Ridge (61.5%) |
330 - 370 |
1,110 - 1,190 |
770 - 830 |
930 - 1,010 |
Phoenix (61.5%) |
90 - 120 |
2,000 - 2,080 |
720 - 780 |
890 - 970 |
Long Canyon (61.5%) |
40 - 50 |
1,420 - 1,500 |
540 - 600 |
540 - 620 |
Nevada Gold Mines (61.5%) |
1,900 - 2,100 |
1,020 - 1,100 |
710 - 770 |
990 - 1,070 |
Hemlo |
160 - 180 |
1,340 - 1,420 |
1,140 - 1,200 |
1,510 - 1,590 |
North America |
2,100 - 2,300 |
1,050 - 1,130 |
740 - 800 |
1,040 - 1,120 |
|
|
|
|
|
Pueblo Viejo (60%) |
400 - 440 |
1,070 - 1,150 |
670 - 730 |
910 - 990 |
Veladero (50%) |
220 - 240 |
1,210 - 1,290 |
740 - 800 |
1,270 - 1,350 |
Porgera (47.5%)26 |
— |
— |
— |
— |
Latin America & Asia Pacific |
620 - 680 |
1,140 - 1,220 |
700 - 760 |
1,040 - 1,120 |
|
|
|
|
|
Loulo-Gounkoto (80%) |
510 - 560 |
1,070 - 1,150 |
680 - 740 |
940 - 1,020 |
Kibali (45%) |
340 - 380 |
990 - 1,070 |
600 - 660 |
800 - 880 |
North Mara (84%) |
230 - 260 |
820 - 900 |
670 - 730 |
930 - 1,010 |
Bulyanhulu (84%) |
180 - 210 |
950 - 1,030 |
630 - 690 |
850 - 930 |
Tongon (89.7%) |
170 - 200 |
1,700 - 1,780 |
1,220 - 1,280 |
1,400 - 1,480 |
Africa & Middle East |
1,450 - 1,600 |
1,070 - 1,150 |
720 - 780 |
950 - 1,030 |
|
|
|
|
|
Total Attributable to
Barrick27,28,29 |
4,200 - 4,600 |
1,070 - 1,150 |
730 - 790 |
1,040 - 1,120 |
|
|
|
|
|
COPPER PRODUCTION AND COSTS |
|
2022 forecast attributable production (Mlbs) |
2022 forecast cost of sales10 ($/lb) |
2022 forecast C1 cash costs12 ($/lb) |
2022 forecast all-in sustaining costs12 ($/lb) |
Lumwana |
250 - 280 |
2.20 - 2.50 |
1.60 - 1.80 |
3.10 - 3.40 |
Zaldívar (50%) |
100 - 120 |
2.70 - 3.00 |
2.00 - 2.20 |
2.50 - 2.80 |
Jabal Sayid (50%) |
70 - 80 |
1.40 - 1.70 |
1.30 - 1.50 |
1.30 - 1.60 |
Total Attributable to
Barrick28 |
420 - 470 |
2.20 - 2.50 |
1.70 - 1.90 |
2.70 - 3.00 |
|
|
|
|
|
ATTRIBUTABLE CAPITAL EXPENDITURES |
|
|
|
|
($ millions) |
|
|
|
Attributable minesite sustaining8 |
1,350 - 1,550 |
|
|
|
Attributable project8 |
550 - 650 |
|
|
|
Total attributable capital expenditures9 |
1,900 - 2,200 |
|
|
|
2022 OUTLOOK ASSUMPTIONS AND ECONOMIC
SENSITIVITY ANALYSIS
|
2022 Guidance Assumption |
Hypothetical Change |
Impact on EBITDA30 (millions) |
Impact on TCC and AISC11,12 |
Gold price sensitivity |
$1,700/oz |
‘+ $100/oz |
+ $580 |
+ $4/oz |
Copper
price sensitivity |
$4/lb |
+/- $0.25/lb |
+/- $60 |
‘+/- $0.02/lb |
Appendix
2Production and Cost Summary -
Gold
|
For the three months ended |
|
9/30/22 |
6/30/22 |
% Change |
9/30/21 |
% Change |
Nevada Gold Mines LLC
(61.5%)a |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
425 |
462 |
(8 |
)% |
495 |
(14 |
)% |
Gold produced (000s oz 100% basis) |
691 |
751 |
(8 |
)% |
805 |
(14 |
)% |
Cost of sales ($/oz) |
1,242 |
1,171 |
6 |
% |
1,123 |
11 |
% |
Total cash costs ($/oz)b |
924 |
856 |
8 |
% |
734 |
26 |
% |
All-in sustaining costs ($/oz)b |
1,333 |
1,238 |
8 |
% |
975 |
37 |
% |
Carlin (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
229 |
243 |
(6 |
)% |
209 |
10 |
% |
Gold produced (000s oz 100% basis) |
372 |
394 |
(6 |
)% |
340 |
10 |
% |
Cost of sales ($/oz) |
1,137 |
1,042 |
9 |
% |
1,017 |
12 |
% |
Total cash costs ($/oz)b |
943 |
862 |
9 |
% |
814 |
16 |
% |
All-in sustaining costs ($/oz)b |
1,304 |
1,192 |
9 |
% |
1,124 |
16 |
% |
Cortez (61.5%)d |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
98 |
97 |
1 |
% |
130 |
(25 |
)% |
Gold produced (000s oz 100% basis) |
160 |
158 |
1 |
% |
212 |
(25 |
)% |
Cost of sales ($/oz) |
1,056 |
1,168 |
(10 |
)% |
1,164 |
(9 |
)% |
Total cash costs ($/oz)b |
770 |
850 |
(9 |
)% |
800 |
(4 |
)% |
All-in sustaining costs ($/oz)b |
1,426 |
1,538 |
(7 |
)% |
1,065 |
34 |
% |
Turquoise Ridge (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
62 |
75 |
(17 |
)% |
82 |
(24 |
)% |
Gold produced (000s oz 100% basis) |
102 |
122 |
(17 |
)% |
134 |
(24 |
)% |
Cost of sales ($/oz) |
1,509 |
1,289 |
17 |
% |
1,169 |
29 |
% |
Total cash costs ($/oz)b |
1,105 |
928 |
19 |
% |
788 |
40 |
% |
All-in sustaining costs ($/oz)b |
1,423 |
1,195 |
19 |
% |
943 |
51 |
% |
Phoenix (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
30 |
26 |
15 |
% |
31 |
(3 |
)% |
Gold produced (000s oz 100% basis) |
47 |
43 |
15 |
% |
50 |
(3 |
)% |
Cost of sales ($/oz) |
1,964 |
2,114 |
(7 |
)% |
1,777 |
11 |
% |
Total cash costs ($/oz)b |
953 |
895 |
6 |
% |
499 |
91 |
% |
All-in sustaining costs ($/oz)b |
1,084 |
1,152 |
(6 |
)% |
582 |
86 |
% |
Long Canyon (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
6 |
21 |
(71 |
)% |
43 |
(86 |
)% |
Gold produced (000s oz 100% basis) |
10 |
34 |
(71 |
)% |
69 |
(86 |
)% |
Cost of sales ($/oz) |
1,769 |
1,280 |
38 |
% |
796 |
122 |
% |
Total cash costs ($/oz)b |
662 |
450 |
47 |
% |
201 |
229 |
% |
All-in sustaining costs ($/oz)b |
684 |
459 |
49 |
% |
251 |
173 |
% |
Pueblo Viejo (60%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
121 |
105 |
15 |
% |
127 |
(5 |
)% |
Gold produced (000s oz 100% basis) |
202 |
175 |
15 |
% |
212 |
(5 |
)% |
Cost of sales ($/oz) |
1,097 |
1,154 |
(5 |
)% |
895 |
23 |
% |
Total cash costs ($/oz)b |
733 |
724 |
1 |
% |
521 |
41 |
% |
All-in sustaining costs ($/oz)b |
1,063 |
1,024 |
4 |
% |
728 |
46 |
% |
Loulo-Gounkoto (80%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
130 |
140 |
(7 |
)% |
137 |
(5 |
)% |
Gold produced (000s oz 100% basis) |
162 |
175 |
(7 |
)% |
171 |
(5 |
)% |
Cost of sales ($/oz) |
1,220 |
1,093 |
12 |
% |
1,109 |
10 |
% |
Total cash costs ($/oz)b |
845 |
730 |
16 |
% |
708 |
19 |
% |
All-in sustaining costs ($/oz)b |
1,216 |
1,013 |
20 |
% |
1,056 |
15 |
% |
Kibali (45%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
83 |
81 |
2 |
% |
95 |
(13 |
)% |
Gold produced (000s oz 100% basis) |
184 |
180 |
2 |
% |
209 |
(13 |
)% |
Cost of sales ($/oz) |
1,047 |
1,164 |
(10 |
)% |
987 |
6 |
% |
Total cash costs ($/oz)b |
731 |
738 |
(1 |
)% |
597 |
22 |
% |
All-in sustaining costs ($/oz)b |
876 |
946 |
(7 |
)% |
751 |
17 |
% |
Veladero (50%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
41 |
58 |
(29 |
)% |
48 |
(15 |
)% |
Gold produced (000s oz 100% basis) |
83 |
116 |
(29 |
)% |
96 |
(15 |
)% |
Cost of sales ($/oz) |
1,430 |
1,369 |
4 |
% |
1,315 |
9 |
% |
Total cash costs ($/oz)b |
893 |
861 |
4 |
% |
882 |
1 |
% |
All-in sustaining costs ($/oz)b |
1,570 |
1,461 |
7 |
% |
1,571 |
0 |
% |
Porgera (47.5%)e |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
— |
— |
— |
% |
— |
— |
% |
Gold produced (000s oz 100% basis) |
— |
— |
— |
% |
— |
— |
% |
Cost of sales ($/oz) |
— |
— |
— |
% |
— |
— |
% |
Total cash costs ($/oz)b |
— |
— |
— |
% |
— |
— |
% |
All-in sustaining costs ($/oz)b |
— |
— |
— |
% |
— |
— |
% |
Tongon (89.7%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
41 |
41 |
0 |
% |
41 |
0 |
% |
Gold produced (000s oz 100% basis) |
46 |
46 |
0 |
% |
45 |
0 |
% |
Cost of sales ($/oz) |
1,744 |
2,025 |
(14 |
)% |
1,579 |
10 |
% |
Total cash costs ($/oz)b |
1,462 |
1,558 |
(6 |
)% |
1,139 |
28 |
% |
All-in sustaining costs ($/oz)b |
1,607 |
1,655 |
(3 |
)% |
1,329 |
21 |
% |
Hemlo |
|
|
|
|
|
Gold produced (000s oz) |
28 |
36 |
(22 |
)% |
26 |
8 |
% |
Cost of sales ($/oz) |
1,670 |
1,698 |
(2 |
)% |
1,870 |
(11 |
)% |
Total cash costs ($/oz)b |
1,446 |
1,489 |
(3 |
)% |
1,493 |
(3 |
)% |
All-in sustaining costs ($/oz)b |
1,865 |
1,804 |
3 |
% |
2,276 |
(18 |
)% |
North Mara (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
71 |
66 |
8 |
% |
66 |
8 |
% |
Gold produced (000s oz 100% basis) |
84 |
79 |
8 |
% |
79 |
8 |
% |
Cost of sales ($/oz) |
956 |
1,060 |
(10 |
)% |
993 |
(4 |
)% |
Total cash costs ($/oz)b |
737 |
756 |
(3 |
)% |
796 |
(7 |
)% |
All-in sustaining costs ($/oz)b |
951 |
957 |
(1 |
)% |
985 |
(3 |
)% |
Buzwagi (84%)f |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
|
|
|
4 |
|
Gold produced (000s oz 100% basis) |
|
|
|
5 |
|
Cost of sales ($/oz) |
|
|
|
1,000 |
|
Total cash costs ($/oz)b |
|
|
|
967 |
|
All-in sustaining costs ($/oz)b |
|
|
|
970 |
|
Bulyanhulu (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
48 |
54 |
(11 |
)% |
53 |
(9 |
)% |
Gold produced (000s oz 100% basis) |
58 |
65 |
(11 |
)% |
63 |
(9 |
)% |
Cost of sales ($/oz) |
1,229 |
1,163 |
6 |
% |
1,073 |
15 |
% |
Total cash costs ($/oz)b |
898 |
836 |
7 |
% |
724 |
24 |
% |
All-in sustaining costs ($/oz)b |
1,170 |
1,094 |
7 |
% |
827 |
41 |
% |
Total
Attributable to Barrickg |
|
|
|
|
|
Gold produced (000s oz) |
988 |
1,043 |
(5 |
)% |
1,092 |
(10 |
)% |
Cost of sales ($/oz)h |
1,226 |
1,216 |
1 |
% |
1,122 |
9 |
% |
Total cash costs ($/oz)b |
891 |
855 |
4 |
% |
739 |
21 |
% |
All-in sustaining costs ($/oz)b |
1,269 |
1,212 |
5 |
% |
1,034 |
23 |
% |
- These results represent our 61.5% interest in Carlin (including
NGM's 60% interest in South Arturo up until May 30, 2021 and 100%
interest thereafter, reflecting the terms of the Exchange Agreement
with i-80 Gold to acquire the 40% interest in South Arturo that NGM
did not already own in exchange for the Lone Tree and Buffalo
Mountain properties and infrastructure, which closed on October 14,
2021), Cortez, Turquoise Ridge, Phoenix and Long Canyon.
- Further information on these non-GAAP financial performance
measures, including detailed reconciliations, is included in the
endnotes to this press release.
- On September 7, 2021, NGM announced it had entered into an
Exchange Agreement with i-80 Gold to acquire the 40% interest in
South Arturo that NGM did not already own in exchange for the Lone
Tree and Buffalo Mountain properties and infrastructure. Operating
results within our 61.5% interest in Carlin includes NGM's 60%
interest in South Arturo up until May 30, 2021, and 100% interest
thereafter, and operating results within our 61.5% interest in
Phoenix includes Lone Tree up until May 31, 2021, reflecting the
terms of the Exchange Agreement which closed on October 14,
2021.
- Includes Goldrush.
- As Porgera was placed on care and maintenance on April 25,
2020, no operating data or per ounce data is provided.
- With the end of mining at Buzwagi in the third quarter of 2021,
we have ceased to include production or non-GAAP cost metrics for
Buzwagi from October 1, 2021 onwards.
- Excludes Pierina, Lagunas Norte up until its divestiture in
June 2021, and Buzwagi starting in the fourth quarter of
2021. Some of these assets are producing incidental ounces
while in closure or care and maintenance.
- Gold cost of sales per ounce is calculated as cost of sales
across our gold operations (excluding sites in closure or care and
maintenance) divided by ounces sold (both on an attributable basis
using Barrick's ownership share).
Production and Cost Summary -
Copper
|
For the three months ended |
|
9/30/22 |
6/30/22 |
% Change |
9/30/21 |
% Change |
Lumwana |
|
|
|
|
|
Copper production (Mlbs) |
82 |
75 |
9 |
% |
57 |
44 |
% |
Cost of sales ($/lb) |
2.19 |
2.01 |
9 |
% |
2.54 |
(14)% |
C1 cash costs ($/lb)a |
1.78 |
1.68 |
6 |
% |
1.76 |
1 |
% |
All-in sustaining costs ($/lb)a |
3.50 |
3.28 |
7 |
% |
2.68 |
31 |
% |
Zaldívar
(50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
23 |
25 |
(8)% |
24 |
(4)% |
Copper production (Mlbs 100% basis) |
45 |
50 |
(8)% |
48 |
(4)% |
Cost of sales ($/lb) |
3.20 |
2.88 |
11 |
% |
3.13 |
2 |
% |
C1 cash costs ($/lb)a |
2.45 |
2.17 |
13 |
% |
2.33 |
5 |
% |
All-in sustaining costs ($/lb)a |
2.94 |
2.65 |
11 |
% |
2.77 |
6 |
% |
Jabal Sayid (50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
18 |
20 |
(10)% |
19 |
(5)% |
Copper production (Mlbs 100% basis) |
37 |
40 |
(10)% |
38 |
(5)% |
Cost of sales ($/lb) |
1.58 |
1.45 |
9 |
% |
1.51 |
5 |
% |
C1 cash costs ($/lb)a |
1.41 |
1.09 |
29 |
% |
1.35 |
4 |
% |
All-in sustaining costs ($/lb)a |
1.52 |
1.19 |
28 |
% |
1.55 |
(2)% |
Total Attributable to Barrick |
|
|
|
|
|
Copper production (Mlbs) |
123 |
120 |
3 |
% |
100 |
23 |
% |
Cost of sales ($/lb)b |
2.30 |
2.11 |
9 |
% |
2.57 |
(11)% |
C1 cash costs ($/lb)a |
1.86 |
1.70 |
9 |
% |
1.85 |
1 |
% |
All-in sustaining costs ($/lb)a |
3.13 |
2.87 |
9 |
% |
2.60 |
20 |
% |
- Further
information on these non-GAAP financial performance measures,
including detailed reconciliations, is included in the endnotes to
this press release.
- Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share).
Appendix 3Financial and Operating
Highlights
|
For the three months ended |
|
|
For the nine months ended |
|
|
9/30/22 |
|
6/30/22 |
|
% Change |
|
|
9/30/21 |
|
% Change |
|
|
9/30/22 |
|
9/30/21 |
|
% Change |
|
Financial Results ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
2,527 |
|
2,859 |
|
(12 |
)% |
|
2,826 |
|
(11 |
)% |
|
8,239 |
|
8,675 |
|
(5 |
)% |
Cost of sales |
1,815 |
|
1,850 |
|
(2 |
)% |
|
1,768 |
|
3 |
% |
|
5,404 |
|
5,184 |
|
4 |
% |
Net earningsa |
241 |
|
488 |
|
(51 |
)% |
|
347 |
|
(31 |
)% |
|
1,167 |
|
1,296 |
|
(10 |
)% |
Adjusted net earningsb |
224 |
|
419 |
|
(47 |
)% |
|
419 |
|
(47 |
)% |
|
1,106 |
|
1,439 |
|
(23 |
)% |
Adjusted EBITDAb |
1,155 |
|
1,527 |
|
(24 |
)% |
|
1,669 |
|
(31 |
)% |
|
4,327 |
|
5,188 |
|
(17 |
)% |
Adjusted EBITDA marginc |
46 |
% |
53 |
% |
(13 |
)% |
|
59 |
% |
(22 |
)% |
|
53 |
% |
60 |
% |
(12 |
)% |
Minesite sustaining capital expendituresb,d |
571 |
|
523 |
|
9 |
% |
|
386 |
|
48 |
% |
|
1,514 |
|
1,242 |
|
22 |
% |
Project capital
expendituresb,d |
213 |
|
226 |
|
(6 |
)% |
|
179 |
|
19 |
% |
|
625 |
|
513 |
|
22 |
% |
Total consolidated capital
expendituresd,e |
792 |
|
755 |
|
5 |
% |
|
569 |
|
39 |
% |
|
2,158 |
|
1,766 |
|
22 |
% |
Net cash provided by operating
activities |
758 |
|
924 |
|
(18 |
)% |
|
1,050 |
|
(28 |
)% |
|
2,686 |
|
2,991 |
|
(10 |
)% |
Net cash provided by operating
activities marginf |
30 |
% |
32 |
% |
(6 |
)% |
|
37 |
% |
(19 |
)% |
|
33 |
% |
34 |
% |
(3 |
)% |
Free cash flowb |
(34 |
) |
169 |
|
(120 |
)% |
|
481 |
|
(107 |
)% |
|
528 |
|
1,225 |
|
(57 |
)% |
Net earnings per share (basic and
diluted) |
0.14 |
|
0.27 |
|
(48 |
)% |
|
0.20 |
|
(30 |
)% |
|
0.66 |
|
0.73 |
|
(10 |
)% |
Adjusted net earnings (basic)b
per share |
0.13 |
|
0.24 |
|
(46 |
)% |
|
0.24 |
|
(46 |
)% |
|
0.62 |
|
0.81 |
|
(23 |
)% |
Weighted average diluted common shares (millions of shares) |
1,768 |
|
1,777 |
|
(1 |
)% |
|
1,779 |
|
(1 |
)% |
|
1,775 |
|
1,779 |
|
0 |
% |
Operating Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold production (thousands of
ounces)g |
988 |
|
1,043 |
|
(5 |
)% |
|
1,092 |
|
(10 |
)% |
|
3,021 |
|
3,234 |
|
(7 |
)% |
Gold sold (thousands of
ounces)g |
997 |
|
1,040 |
|
(4 |
)% |
|
1,071 |
|
(7 |
)% |
|
3,030 |
|
3,234 |
|
(6 |
)% |
Market gold price ($/oz) |
1,729 |
|
1,871 |
|
(8 |
)% |
|
1,790 |
|
(3 |
)% |
|
1,824 |
|
1,800 |
|
1 |
% |
Realized gold priceb,g
($/oz) |
1,722 |
|
1,861 |
|
(7 |
)% |
|
1,771 |
|
(3 |
)% |
|
1,820 |
|
1,789 |
|
2 |
% |
Gold cost of sales (Barrick’s
share)g,h ($/oz) |
1,226 |
|
1,216 |
|
1 |
% |
|
1,122 |
|
9 |
% |
|
1,211 |
|
1,101 |
|
10 |
% |
Gold total cash costsb,g
($/oz) |
891 |
|
855 |
|
4 |
% |
|
739 |
|
21 |
% |
|
859 |
|
728 |
|
18 |
% |
Gold all-in sustaining costsb,g
($/oz) |
1,269 |
|
1,212 |
|
5 |
% |
|
1,034 |
|
23 |
% |
|
1,215 |
|
1,046 |
|
16 |
% |
Copper production (millions of
pounds)g |
123 |
|
120 |
|
3 |
% |
|
100 |
|
23 |
% |
|
344 |
|
289 |
|
19 |
% |
Copper sold (millions of
pounds)g |
120 |
|
113 |
|
6 |
% |
|
101 |
|
19 |
% |
|
346 |
|
310 |
|
12 |
% |
Market copper price ($/lb) |
3.51 |
|
4.32 |
|
(19 |
)% |
|
4.25 |
|
(17 |
)% |
|
4.11 |
|
4.17 |
|
(1 |
)% |
Realized copper priceb,g
($/lb) |
3.24 |
|
3.72 |
|
(13 |
)% |
|
3.98 |
|
(19 |
)% |
|
3.86 |
|
4.21 |
|
(8 |
)% |
Copper cost of sales (Barrick’s
share)g,i ($/lb) |
2.30 |
|
2.11 |
|
9 |
% |
|
2.57 |
|
(11 |
)% |
|
2.21 |
|
2.36 |
|
(6 |
)% |
Copper C1 cash costsb,g
($/lb) |
1.86 |
|
1.70 |
|
9 |
% |
|
1.85 |
|
1 |
% |
|
1.79 |
|
1.75 |
|
2 |
% |
Copper all-in sustaining costsb,g
($/lb) |
3.13 |
|
2.87 |
|
9 |
% |
|
2.60 |
|
20 |
% |
|
2.96 |
|
2.52 |
|
17 |
% |
|
As at 9/30/22 |
|
As at 6/30/22 |
|
% Change |
|
|
As at 9/30/21 |
|
% Change |
|
|
|
|
|
|
|
|
Financial Position ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (current and long-term) |
5,095 |
|
5,144 |
|
(1 |
)% |
|
5,154 |
|
(1 |
)% |
|
|
|
|
|
|
|
Cash and equivalents |
5,240 |
|
5,780 |
|
(9 |
)% |
|
5,043 |
|
4 |
% |
|
|
|
|
|
|
|
Debt, net of cash |
(145 |
) |
(636 |
) |
(77 |
)% |
|
111 |
|
(231 |
)% |
|
|
|
|
|
|
|
- Net earnings represents net earnings attributable to the equity
holders of the Company.
- Further information on these non-GAAP financial performance
measures, including detailed reconciliations, is included in the
endnotes to this press release.
- 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 of $8 million and
$19 million, respectively, for the three and nine month periods
ended September 30, 2022 (June 30, 2022: $6 million and
September 30, 2021: $4 million and $11 million,
respectively).
- Represents net cash provided by
operating activities divided by revenue.
- On an attributable basis.
- Gold cost of sales per ounce is
calculated as cost of sales across our gold operations (excluding
sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using Barrick's ownership
share).
- Copper cost of sales per pound is
calculated as cost of sales across our copper operations divided by
pounds sold (both on an attributable basis using Barrick's
ownership share).
Consolidated Statements of Income
Barrick
Gold Corporation(in millions of United States dollars, except per
share data) (Unaudited) |
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue (notes 5 and 6) |
$ |
2,527 |
|
$ |
2,826 |
|
$ |
8,239 |
|
$ |
8,675 |
|
Costs and expenses (income) |
|
|
|
|
Cost of sales (notes 5 and
7) |
|
1,815 |
|
|
1,768 |
|
|
5,404 |
|
|
5,184 |
|
General and administrative
expenses |
|
26 |
|
|
27 |
|
|
110 |
|
|
112 |
|
Exploration, evaluation and
project expenses |
|
77 |
|
|
67 |
|
|
244 |
|
|
205 |
|
Impairment (reversals) charges
(notes 9b and 13) |
|
24 |
|
|
10 |
|
|
29 |
|
|
(77 |
) |
Loss on currency translation |
|
3 |
|
|
5 |
|
|
12 |
|
|
16 |
|
Closed mine rehabilitation |
|
(55 |
) |
|
4 |
|
|
(180 |
) |
|
33 |
|
Income from equity investees
(note 12) |
|
(52 |
) |
|
(101 |
) |
|
(240 |
) |
|
(308 |
) |
Other (income) expense (note 9a) |
|
(9 |
) |
|
18 |
|
|
(18 |
) |
|
63 |
|
Income before finance costs and income taxes |
$ |
698 |
|
$ |
1,028 |
|
$ |
2,878 |
|
$ |
3,447 |
|
Finance costs, net |
|
(73 |
) |
|
(93 |
) |
|
(250 |
) |
|
(271 |
) |
Income before income taxes |
$ |
625 |
|
$ |
935 |
|
$ |
2,628 |
|
$ |
3,176 |
|
Income tax expense (note 10) |
|
(215 |
) |
|
(323 |
) |
|
(795 |
) |
|
(1,040 |
) |
Net income |
$ |
410 |
|
$ |
612 |
|
$ |
1,833 |
|
$ |
2,136 |
|
Attributable to: |
|
|
|
|
Equity holders of Barrick Gold
Corporation |
$ |
241 |
|
$ |
347 |
|
$ |
1,167 |
|
$ |
1,296 |
|
Non-controlling interests (note 17) |
$ |
169 |
|
$ |
265 |
|
$ |
666 |
|
$ |
840 |
|
|
|
|
|
|
Earnings per share
data attributable to the equity holders of Barrick Gold Corporation
(note 8) |
|
|
|
|
Net income |
|
|
|
|
Basic |
$ |
0.14 |
|
$ |
0.20 |
|
$ |
0.66 |
|
$ |
0.73 |
|
Diluted |
$ |
0.14 |
|
$ |
0.20 |
|
$ |
0.66 |
|
$ |
0.73 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Third Quarter Report 2022
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Statements of Comprehensive
Income
Barrick
Gold Corporation(in millions of United States dollars)
(Unaudited) |
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net
income |
$ |
410 |
|
$ |
612 |
|
$ |
1,833 |
|
$ |
2,136 |
|
Other comprehensive
income (loss), net of taxes |
|
|
|
|
Items that may be
reclassified subsequently to profit or loss: |
|
|
|
|
Realized losses on derivatives
designated as cash flow hedges, net of tax $nil, $nil, $nil and
$nil |
|
1 |
|
|
— |
|
|
1 |
|
|
3 |
|
Currency translation adjustments,
net of tax $nil, $nil, $nil and $nil |
|
1 |
|
|
2 |
|
|
2 |
|
|
2 |
|
Items that will not be
reclassified to profit or loss: |
|
|
|
|
Actuarial loss on post employment
benefit obligations, net of tax $nil, $nil, $nil and $nil |
|
(1 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
Net change on equity investments,
net of tax $nil, $2, ($6) and $7 |
|
3 |
|
|
(12 |
) |
|
35 |
|
|
(49 |
) |
Total other comprehensive income (loss) |
|
4 |
|
|
(10 |
) |
|
36 |
|
|
(44 |
) |
Total comprehensive income |
$ |
414 |
|
$ |
602 |
|
$ |
1,869 |
|
$ |
2,092 |
|
Attributable to: |
|
|
|
|
Equity holders of Barrick Gold
Corporation |
$ |
245 |
|
$ |
337 |
|
$ |
1,203 |
|
$ |
1,252 |
|
Non-controlling interests |
$ |
169 |
|
$ |
265 |
|
$ |
666 |
|
$ |
840 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Third Quarter Report 2022
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Statements of Cash Flow
Barrick
Gold Corporation (in millions of United States dollars)
(Unaudited) |
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
OPERATING ACTIVITIES |
|
|
|
|
Net income |
$ |
410 |
|
$ |
612 |
|
$ |
1,833 |
|
$ |
2,136 |
|
Adjustments for the following
items: |
|
|
|
|
Depreciation |
|
457 |
|
|
538 |
|
|
1,393 |
|
|
1,545 |
|
Finance costs, net |
|
103 |
|
|
101 |
|
|
302 |
|
|
295 |
|
Impairment (reversals) charges (notes 9b and 13) |
|
24 |
|
|
10 |
|
|
29 |
|
|
(77 |
) |
Income tax expense (note 10) |
|
215 |
|
|
323 |
|
|
795 |
|
|
1,040 |
|
Income from equity investees (note 12) |
|
(52 |
) |
|
(101 |
) |
|
(240 |
) |
|
(308 |
) |
Gain on sale of non-current assets |
|
(64 |
) |
|
(5 |
) |
|
(86 |
) |
|
(15 |
) |
Loss on currency translation |
|
3 |
|
|
5 |
|
|
12 |
|
|
16 |
|
Change in working capital
(note 11) |
|
(52 |
) |
|
58 |
|
|
(217 |
) |
|
(191 |
) |
Other
operating activities (note 11) |
|
(91 |
) |
|
(17 |
) |
|
(294 |
) |
|
(133 |
) |
Operating cash flows before interest and income taxes |
|
953 |
|
|
1,524 |
|
|
3,527 |
|
|
4,308 |
|
Interest paid |
|
(23 |
) |
|
(18 |
) |
|
(175 |
) |
|
(171 |
) |
Income
taxes paid1 |
|
(172 |
) |
|
(456 |
) |
|
(666 |
) |
|
(1,146 |
) |
Net cash provided by operating activities |
|
758 |
|
|
1,050 |
|
|
2,686 |
|
|
2,991 |
|
INVESTING ACTIVITIES |
|
|
|
|
Property, plant and
equipment |
|
|
|
|
Capital expenditures (note 5) |
|
(792 |
) |
|
(569 |
) |
|
(2,158 |
) |
|
(1,766 |
) |
Sales proceeds |
|
52 |
|
|
16 |
|
|
75 |
|
|
21 |
|
Investment sales |
|
— |
|
|
— |
|
|
382 |
|
|
— |
|
Divestitures (note 4) |
|
— |
|
|
— |
|
|
— |
|
|
19 |
|
Dividends received from equity
method investments (note 12) |
|
101 |
|
|
53 |
|
|
770 |
|
|
214 |
|
Shareholder loan repayments from equity method investments (note
12) |
|
— |
|
|
1 |
|
|
— |
|
|
2 |
|
Net cash used in investing activities |
|
(639 |
) |
|
(499 |
) |
|
(931 |
) |
|
(1,510 |
) |
FINANCING ACTIVITIES |
|
|
|
|
Lease repayments |
|
(6 |
) |
|
(5 |
) |
|
(16 |
) |
|
(15 |
) |
Debt repayments |
|
(56 |
) |
|
— |
|
|
(56 |
) |
|
(7 |
) |
Dividends |
|
(351 |
) |
|
(158 |
) |
|
(882 |
) |
|
(475 |
) |
Return of capital (note
16) |
|
— |
|
|
(250 |
) |
|
— |
|
|
(500 |
) |
Share buyback program (note
16) |
|
(141 |
) |
|
— |
|
|
(314 |
) |
|
— |
|
Funding from non-controlling
interests (note 17) |
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
Disbursements to
non-controlling interests (note 17) |
|
(162 |
) |
|
(270 |
) |
|
(661 |
) |
|
(741 |
) |
Other
financing activities (note 11) |
|
60 |
|
|
37 |
|
|
140 |
|
|
101 |
|
Net cash used in financing activities |
|
(656 |
) |
|
(646 |
) |
|
(1,789 |
) |
|
(1,625 |
) |
Effect of exchange rate changes on cash and
equivalents |
|
(3 |
) |
|
— |
|
|
(6 |
) |
|
(1 |
) |
Net decrease in cash and equivalents |
|
(540 |
) |
|
(95 |
) |
|
(40 |
) |
|
(145 |
) |
Cash and equivalents at the beginning of
period |
|
5,780 |
|
|
5,138 |
|
|
5,280 |
|
|
5,188 |
|
Cash and equivalents at the end of period |
$ |
5,240 |
|
$ |
5,043 |
|
$ |
5,240 |
|
$ |
5,043 |
|
- Income taxes paid excludes $59 million (2021:
$(26) million) for the three months ended September 30,
2022 and $95 million (2021: $67 million) for the nine
months ended September 30, 2022 of income taxes payable that were
settled against offsetting VAT receivables.
The notes to these unaudited condensed interim financial
statements, which are contained in the Third Quarter Report 2022
available on our website, are an integral part of these
consolidated financial statements.
Consolidated Balance Sheets
Barrick Gold Corporation |
As at
September 30, |
|
As at December
31, |
|
(in millions of United States dollars) (Unaudited) |
|
2022 |
|
|
2021 |
|
ASSETS |
|
|
Current assets |
|
|
Cash and equivalents |
$ |
5,240 |
|
$ |
5,280 |
|
Accounts receivable |
|
499 |
|
|
623 |
|
Inventories |
|
1,691 |
|
|
1,734 |
|
Other current assets |
|
786 |
|
|
612 |
|
Total current assets |
$ |
8,216 |
|
$ |
8,249 |
|
Non-current assets |
|
|
Equity in investees (note 12) |
|
4,064 |
|
|
4,594 |
|
Property, plant and equipment |
|
25,329 |
|
|
24,954 |
|
Goodwill |
|
4,769 |
|
|
4,769 |
|
Intangible assets |
|
149 |
|
|
150 |
|
Deferred income tax assets |
|
— |
|
|
29 |
|
Non-current portion of inventory |
|
2,815 |
|
|
2,636 |
|
Other assets |
|
1,100 |
|
|
1,509 |
|
Total assets |
$ |
46,442 |
|
$ |
46,890 |
|
LIABILITIES AND EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$ |
1,571 |
|
$ |
1,448 |
|
Debt (note 14a) |
|
12 |
|
|
15 |
|
Current income tax liabilities |
|
192 |
|
|
285 |
|
Other current liabilities |
|
413 |
|
|
338 |
|
Total current liabilities |
$ |
2,188 |
|
$ |
2,086 |
|
Non-current liabilities |
|
|
Debt (note 14a) |
|
5,083 |
|
|
5,135 |
|
Provisions |
|
2,110 |
|
|
2,768 |
|
Deferred income tax liabilities |
|
3,461 |
|
|
3,293 |
|
Other liabilities |
|
1,293 |
|
|
1,301 |
|
Total liabilities |
$ |
14,135 |
|
$ |
14,583 |
|
Equity |
|
|
Capital stock (note 16) |
$ |
28,220 |
|
$ |
28,497 |
|
Deficit |
|
(6,284 |
) |
|
(6,566 |
) |
Accumulated other comprehensive income (loss) |
|
13 |
|
|
(23 |
) |
Other |
|
1,915 |
|
|
1,949 |
|
Total equity attributable to Barrick Gold Corporation
shareholders |
$ |
23,864 |
|
$ |
23,857 |
|
Non-controlling interests (note 17) |
|
8,443 |
|
|
8,450 |
|
Total equity |
$ |
32,307 |
|
$ |
32,307 |
|
Contingencies and commitments (notes 5 and 18) |
|
|
Total liabilities and equity |
$ |
46,442 |
|
$ |
46,890 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Third Quarter Report 2022
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) (Unaudited) |
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, 2022 |
1,779,331 |
|
$28,497 |
|
($6,566 |
) |
($23 |
) |
$1,949 |
|
$23,857 |
|
$8,450 |
|
$32,307 |
|
Net income |
— |
|
— |
|
1,167 |
|
— |
|
— |
|
1,167 |
|
666 |
|
1,833 |
|
Total other comprehensive income |
— |
|
— |
|
— |
|
36 |
|
— |
|
36 |
|
— |
|
36 |
|
Total comprehensive income |
— |
|
— |
|
1,167 |
|
36 |
|
— |
|
1,203 |
|
666 |
|
1,869 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
— |
|
(882 |
) |
— |
|
— |
|
(882 |
) |
— |
|
(882 |
) |
Disbursements to non-controlling interests (note 17) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(673 |
) |
(673 |
) |
Dividend reinvestment plan (note 16) |
204 |
|
3 |
|
(3 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
Share buyback program (note 16) |
(17,500 |
) |
(280 |
) |
— |
|
— |
|
(34 |
) |
(314 |
) |
— |
|
(314 |
) |
Total transactions with owners |
(17,296 |
) |
(277 |
) |
(885 |
) |
— |
|
(34 |
) |
(1,196 |
) |
(673 |
) |
(1,869 |
) |
At September 30, 2022 |
1,762,035 |
|
$28,220 |
|
($6,284 |
) |
$13 |
|
$1,915 |
|
$23,864 |
|
$8,443 |
|
$32,307 |
|
|
|
|
|
|
|
|
|
|
At January 1, 2021 |
1,778,190 |
|
$29,236 |
|
($7,949 |
) |
$14 |
|
$2,040 |
|
$23,341 |
|
$8,369 |
|
$31,710 |
|
Net income |
— |
|
— |
|
1,296 |
|
— |
|
— |
|
1,296 |
|
840 |
|
2,136 |
|
Total other comprehensive loss |
— |
|
— |
|
— |
|
(44 |
) |
— |
|
(44 |
) |
— |
|
(44 |
) |
Total comprehensive income (loss) |
— |
|
— |
|
1,296 |
|
(44 |
) |
— |
|
1,252 |
|
840 |
|
2,092 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
— |
|
(475 |
) |
— |
|
— |
|
(475 |
) |
— |
|
(475 |
) |
Return of capital (note 16) |
— |
|
(500 |
) |
— |
|
— |
|
— |
|
(500 |
) |
— |
|
(500 |
) |
Issued on exercise of stock options |
50 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Funding from non-controlling interests |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
12 |
|
12 |
|
Disbursements to non-controlling interests |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(749 |
) |
(749 |
) |
Dividend reinvestment plan |
147 |
|
4 |
|
(4 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
Share-based payments |
899 |
|
6 |
|
— |
|
— |
|
(6 |
) |
— |
|
— |
|
— |
|
Total transactions with owners |
1,096 |
|
(490 |
) |
(479 |
) |
— |
|
(6 |
) |
(975 |
) |
(737 |
) |
(1,712 |
) |
At September 30, 2021 |
1,779,286 |
|
$28,746 |
|
($7,132 |
) |
($30 |
) |
$2,034 |
|
$23,618 |
|
$8,472 |
|
$32,090 |
|
- Includes cumulative translation losses at September 30,
2022: $92 million (December 31, 2021: $94 million;
September 30, 2021: $94 million).
- Includes additional paid-in capital as at September 30,
2022: $1,877 million (December 31, 2021:
$1,911 million; September 30, 2021: $1,996 million).
The notes to these unaudited condensed interim financial
statements, which are contained in the Third Quarter Report 2022
available on our website, are an integral part of these
consolidated financial statements.
Technical Information
The scientific and technical information contained in this press
release has been reviewed and approved by 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, in both his capacity as
Mineral Resources Manager: Africa & Middle East and Mineral
Resource Management and Evaluation Executive (Mr. Bottoms held the
title of Mineral Resources Manager: Africa & Middle East until
September 30, 2022, and was promoted to Mineral Resource Management
and Evaluation Executive effective October 1, 2022); John Steele,
CIM, Metallurgy, Engineering and Capital Projects Executive; and
Rob Krcmarov, FAusIMM, Technical Advisor to Barrick — 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, 2021.
Endnotes
Endnote 1
Includes 0.5 million Barrick shares repurchased for $8 million
in September 2022 and settled in October 2022.
Endnote 2
Calculated as cash and equivalents ($5,240 million) less
debt ($5,095 million).
Endnote 3
“Adjusted net earnings” and “adjusted net earnings per share”
are non-GAAP financial performance measures. Adjusted net earnings
excludes the following from net earnings: certain impairment
charges (reversals) related to intangibles, goodwill, property,
plant and equipment, and investments; gains (losses) and other one
time costs relating to acquisitions or dispositions; foreign
currency translation gains (losses); significant tax adjustments
not related to current period earnings; other items that are not
indicative of the underlying operating performance of our core
mining business; and the tax effect and non-controlling interest of
these items. Management uses this measure internally to evaluate
our underlying operating performance for the reporting periods
presented and to assist with the planning and forecasting of future
operating results. Management believes that adjusted net earnings
is a useful measure of our performance because these adjusting
items do not reflect the underlying operating performance of our
core mining business and are not necessarily indicative of future
operating results. Adjusted net earnings and adjusted net earnings
per share are intended to provide additional information only and
do not have any standardized definition under IFRS and should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may
calculate these measures differently. Further details on these
non-GAAP financial performance measures are provided in the
MD&A accompanying Barrick’s financial statements filed from
time to time on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
Reconciliation of Net Earnings to Net Earnings per
Share, Adjusted Net Earnings and Adjusted Net Earnings per
Share
($
millions, except per share amounts in dollars) |
For the three months ended |
|
For the nine months ended |
|
|
9/30/22 |
|
6/30/22 |
|
9/30/21 |
|
9/30/22 |
|
9/30/21 |
|
Net earnings attributable to equity holders of the Company |
241 |
|
488 |
|
347 |
|
1,167 |
|
1,296 |
|
Impairment charges (reversals)
related to intangibles, goodwill, property, plant and equipment,
and investmentsa |
24 |
|
3 |
|
10 |
|
29 |
|
(77 |
) |
Acquisition/disposition
gainsb |
(64 |
) |
(20 |
) |
(5 |
) |
(86 |
) |
(15 |
) |
Loss on currency
translation |
3 |
|
6 |
|
5 |
|
12 |
|
16 |
|
Significant tax
adjustmentsc |
44 |
|
38 |
|
45 |
|
99 |
|
154 |
|
Other (income) expense
adjustmentsd |
(27 |
) |
(95 |
) |
12 |
|
(109 |
) |
37 |
|
Tax
effect and non-controlling intereste |
3 |
|
(1 |
) |
5 |
|
(6 |
) |
28 |
|
Adjusted net earnings |
224 |
|
419 |
|
419 |
|
1,106 |
|
1,439 |
|
Net earnings per sharef |
0.14 |
|
0.27 |
|
0.20 |
|
0.66 |
|
0.73 |
|
Adjusted net earnings per sharef |
0.13 |
|
0.24 |
|
0.24 |
|
0.62 |
|
0.81 |
|
- For the three and nine month periods ended September 30, 2022,
net impairment charges mainly relate to an inventory write-off at
Lumwana. Net impairment reversals for the nine months ended
September 30, 2021 mainly relate to non-current asset reversals at
Lagunas Norte.
- For the three and nine month periods ended September 30, 2022,
acquisition/disposition gains relate to the sale of a portfolio of
royalties to Maverix Metals Inc. and the sale of a portfolio of
royalties by Nevada Gold Mines to Gold Royalty Corp.
- For the three month period ended September 30, 2022,
significant tax adjustments mainly relate to foreign currency
translation gains and losses on tax balances, gain on sale of
non-current assets, impairment charges and changes in the discount
rate assumptions on our closed mine rehabilitation provision. For
the three month period ended September 30, 2021, significant tax
adjustments primarily relate to the foreign exchange impact on
current tax expense in Peru and the remeasurement of deferred tax
balances. For the nine month period ended September 30, 2022,
significant tax adjustments primarily relate to foreign currency
translation gains and losses on tax balances, changes in the
discount rate assumptions on our closed mine rehabilitation
provision, care and maintenance expenses at Porgera and gain on
sale of non-current assets. For the nine month period ended
September 30, 2021, significant tax adjustments mainly relate to
deferred tax expense as a result of tax reform measures in
Argentina, the foreign exchange impact on current tax expense in
Peru and the remeasurement of deferred tax balances, the settlement
of the Massawa Senegalese tax dispute and the
recognition/derecognition of our deferred taxes in various
jurisdictions.
- For the three month periods ended September 30, 2022 and June
30, 2022 and for the nine month period ended September 2022, other
(income) expense adjustments mainly relate to changes in the
discount rate assumptions on our closed mine rehabilitation
provision. Other (income) expense adjustments for all periods were
also impacted by care and maintenance expenses at Porgera.
- Tax effect and non-controlling interest for the nine month
period ended September 30, 2021 primarily relates to
acquisition/disposition gains.
- Calculated using weighted average number of shares outstanding
under the basic method of earnings per share.
Endnote 4
As at September 30, 2022, we have purchased $322 million of
shares under this program, including $8 million that settled in the
fourth quarter of 2022.
Endnote 5
“Realized price” is a non-GAAP financial performance measure
which excludes from sales: unrealized gains and losses on non-hedge
derivative contracts; unrealized mark-to-market gains and losses on
provisional pricing from copper and gold sales contracts; sales
attributable to ore purchase arrangements; treatment and refining
charges; and cumulative catch-up adjustments to revenue relating to
our streaming arrangements. This measure is intended to enable
Management to better understand the price realized in each
reporting period for gold and copper sales because unrealized
mark-to-market values of non-hedge gold and copper derivatives are
subject to change each period due to changes in market factors such
as market and forward gold and copper prices, so that prices
ultimately realized may differ from those recorded. The exclusion
of such unrealized mark-to-market gains and losses from the
presentation of this performance measure enables investors to
understand performance based on the realized proceeds of selling
gold and copper production. The realized price measure is intended
to provide additional information and does not have any
standardized definition under IFRS and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Other companies may calculate this measure
differently. Further details on these non-GAAP financial
performance measures are provided in the MD&A accompanying
Barrick’s financial statements filed from time to time on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Sales to Realized Price per
ounce/pound
($
millions, except per ounce/pound information in dollars) |
Gold |
Copper |
Gold |
Copper |
For the three months ended |
For the nine months ended |
|
9/30/22 |
|
6/30/22 |
|
9/30/21 |
|
9/30/22 |
6/30/22 |
9/30/21 |
9/30/22 |
|
9/30/21 |
|
9/30/22 |
9/30/21 |
Sales |
2,277 |
|
2,597 |
|
2,531 |
|
200 |
211 |
209 |
7,385 |
|
7,761 |
|
698 |
699 |
Sales applicable to
non-controlling interests |
(700 |
) |
(779 |
) |
(799 |
) |
0 |
0 |
0 |
(2,266 |
) |
(2,392 |
) |
0 |
0 |
Sales applicable to equity
method investmentsa,b |
152 |
|
145 |
|
166 |
|
134 |
164 |
154 |
433 |
|
488 |
|
486 |
485 |
Sales applicable to sites in
closure or care and maintenancec |
(14 |
) |
(30 |
) |
(11 |
) |
0 |
0 |
0 |
(44 |
) |
(80 |
) |
0 |
0 |
Treatment and refinement
charges |
3 |
|
2 |
|
9 |
|
54 |
47 |
42 |
8 |
|
9 |
|
152 |
122 |
Revenues – as adjusted |
1,718 |
|
1,935 |
|
1,896 |
|
388 |
422 |
405 |
5,516 |
|
5,786 |
|
1,336 |
1,306 |
Ounces/pounds sold (000s ounces/millions pounds)c |
997 |
|
1,040 |
|
1,071 |
|
120 |
113 |
101 |
3,030 |
|
3,234 |
|
346 |
310 |
Realized gold/copper price per ounce/poundd |
1,722 |
|
1,861 |
|
1,771 |
|
3.24 |
3.72 |
3.98 |
1,820 |
|
1,789 |
|
3.86 |
4.21 |
- Represents sales of $152 million
and $433 million, respectively, for the three and nine month
periods ended September 30, 2022 (June 30, 2022: $145
million and September 30, 2021: $166 million and
$489 million, respectively) applicable to our 45% equity
method investment in Kibali for gold. Represents sales of $82
million and $299 million, respectively, for the three and nine
months ended September 30, 2022 (June 30, 2022: $99
million and September 30, 2021: $108 million and $304 million,
respectively) applicable to our 50% equity method investment in
Zaldívar and $57 million and $201 million, respectively
(June 30, 2022: $69 million and September 30, 2021: $50
million and $194 million, respectively) applicable to our 50%
equity method investment in Jabal Sayid for copper.
- Sales applicable to equity method
investments are net of treatment and refinement charges.
- Excludes Pierina, Lagunas Norte up
until its divestiture in June 2021, and Buzwagi starting in the
fourth quarter of 2021. Some of these assets are producing
incidental ounces while in closure or care and maintenance.
- Realized price per ounce/pound may
not calculate based on amounts presented in this table due to
rounding.
Endnote 6
On an attributable basis.
Endnote 7
“Free cash flow” is a non-GAAP financial performance measure
that deducts capital expenditures from net cash provided by
operating activities. Management believes this to be a useful
indicator of our ability to operate without reliance on additional
borrowing or usage of existing cash. Free cash flow is intended to
provide additional information only and does not have any
standardized definition under IFRS, and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Other companies may calculate this measure
differently. Further details on this non-GAAP financial performance
measure are provided in the MD&A accompanying Barrick’s
financial statements filed from time to time on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Cash Provided by Operating
Activities to Free Cash Flow
($
millions) |
For the three months ended |
|
For the nine months ended |
|
|
9/30/22 |
|
6/30/22 |
|
9/30/21 |
|
9/30/22 |
|
9/30/21 |
|
Net cash provided by operating activities |
758 |
|
924 |
|
1,050 |
|
2,686 |
|
2,991 |
|
Capital
expenditures |
(792 |
) |
(755 |
) |
(569 |
) |
(2,158 |
) |
(1,766 |
) |
Free cash flow |
(34 |
) |
169 |
|
481 |
|
528 |
|
1,225 |
|
Endnote 8
Capital expenditures are classified into minesite sustaining
capital expenditures or project capital expenditures depending on
the nature of the expenditure. Minesite sustaining capital
expenditures is the capital spending required to support current
production levels. Project capital expenditures represent the
capital spending at new projects and major, discrete projects at
existing operations intended to increase net present value through
higher production or longer mine life. Management believes this to
be a useful indicator of the purpose of capital expenditures and
this distinction is an input into the calculation of all-in
sustaining costs per ounce and all-in costs per ounce. Classifying
capital expenditures is intended to provide additional information
only 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. Other
companies may calculate these measures differently. The following
table reconciles these non-GAAP financial performance measures to
the most directly comparable IFRS measure.
Reconciliation of the Classification of Capital
Expenditures
($
millions) |
For the three months ended |
For the nine months ended |
|
9/30/22 |
6/30/22 |
9/30/21 |
9/30/22 |
9/30/21 |
Minesite sustaining capital expenditures |
571 |
523 |
386 |
1,514 |
1,242 |
Project capital expenditures |
213 |
226 |
179 |
625 |
513 |
Capitalized interest |
8 |
6 |
4 |
19 |
11 |
Total consolidated capital expenditures |
792 |
755 |
569 |
2,158 |
1,766 |
Endnote 9
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 and Bulyanhulu and our 50% share of Zaldívar and Jabal
Sayid.
Endnote 10
Gold cost of sales per ounce is calculated as cost of sales
across our gold operations (excluding sites in closure or care and
maintenance) divided by ounces sold (both on an attributable basis
using Barrick's ownership share). Copper cost of sales per pound is
calculated as cost of sales across our copper operations divided by
pounds sold (both on an attributable basis using Barrick's
ownership share). References to attributable basis means our 100%
share of Hemlo and Lumwana, 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 up until the third quarter of 2021, our 50% share of
Veladero, Zaldívar and Jabal Sayid, our 47.5% share of Porgera and
our 45% share of Kibali.
Endnote 11
“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 includes minesite sustaining capital
expenditures, sustaining leases, general and administrative costs,
minesite exploration and evaluation costs, and reclamation cost
accretion and amortization. These additional costs reflect the
expenditures made to maintain current production levels. "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 of Barrick 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 standardized
definitions under IFRS and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. Although a standardized definition of all-in sustaining
costs was published 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. Further details on these non-GAAP
financial performance 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
($
millions, except per ounce information in dollars) |
|
For the three months ended |
|
For the nine months ended |
|
|
Footnote |
9/30/22 |
|
6/30/22 |
|
9/30/21 |
|
9/30/22 |
|
9/30/21 |
|
Cost of sales applicable to gold production |
|
1,638 |
|
1,703 |
|
1,601 |
|
4,923 |
|
4,733 |
|
Depreciation |
|
(393 |
) |
(438 |
) |
(475 |
) |
(1,250 |
) |
(1,377 |
) |
Cash cost of sales applicable to equity method investments |
|
61 |
|
54 |
|
51 |
|
166 |
|
165 |
|
By-product credits |
|
(50 |
) |
(51 |
) |
(86 |
) |
(156 |
) |
(215 |
) |
Realized (gains) losses on hedge and non-hedge derivatives |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Non-recurring items |
a |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Other |
b |
(7 |
) |
(22 |
) |
14 |
|
(30 |
) |
(41 |
) |
Non-controlling interests |
c |
(360 |
) |
(358 |
) |
(314 |
) |
(1,049 |
) |
(910 |
) |
Total cash costs |
|
889 |
|
888 |
|
791 |
|
2,604 |
|
2,355 |
|
General & administrative costs |
|
26 |
|
30 |
|
27 |
|
110 |
|
112 |
|
Minesite exploration and evaluation costs |
d |
22 |
|
20 |
|
20 |
|
52 |
|
52 |
|
Minesite sustaining capital expenditures |
e |
571 |
|
523 |
|
386 |
|
1,514 |
|
1,242 |
|
Sustaining leases |
|
12 |
|
6 |
|
9 |
|
27 |
|
28 |
|
Rehabilitation - accretion and amortization (operating sites) |
f |
12 |
|
13 |
|
14 |
|
36 |
|
38 |
|
Non-controlling interest, copper operations and other |
g |
(264 |
) |
(221 |
) |
(140 |
) |
(661 |
) |
(445 |
) |
All-in sustaining costs |
|
1,268 |
|
1,259 |
|
1,107 |
|
3,682 |
|
3,382 |
|
Global exploration and evaluation and project expense |
d |
55 |
|
80 |
|
47 |
|
192 |
|
153 |
|
Community relations costs not related to current operations |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Project capital expenditures |
e |
213 |
|
226 |
|
179 |
|
625 |
|
513 |
|
Non-sustaining leases |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Rehabilitation - accretion and amortization (non-operating
sites) |
f |
5 |
|
5 |
|
4 |
|
13 |
|
11 |
|
Non-controlling interest and copper operations and other |
g |
(71 |
) |
(68 |
) |
(53 |
) |
(197 |
) |
(169 |
) |
All-in costs |
|
1,470 |
|
1,502 |
|
1,284 |
|
4,315 |
|
3,890 |
|
Ounces sold - equity basis (000s ounces) |
h |
997 |
|
1,040 |
|
1,071 |
|
3,030 |
|
3,234 |
|
Cost of sales per ounce |
i,j |
1,226 |
|
1,216 |
|
1,122 |
|
1,211 |
|
1,101 |
|
Total cash costs per ounce |
j |
891 |
|
855 |
|
739 |
|
859 |
|
728 |
|
Total
cash costs per ounce (on a co-product basis) |
j,k |
925 |
|
887 |
|
794 |
|
893 |
|
769 |
|
All-in sustaining costs per ounce |
j |
1,269 |
|
1,212 |
|
1,034 |
|
1,215 |
|
1,046 |
|
All-in
sustaining costs per ounce (on a co-product basis) |
j,k |
1,303 |
|
1,244 |
|
1,089 |
|
1,249 |
|
1,087 |
|
All-in costs per ounce |
j |
1,474 |
|
1,444 |
|
1,199 |
|
1,424 |
|
1,203 |
|
All-in
costs per ounce (on a co-product basis) |
j,k |
1,508 |
|
1,476 |
|
1,254 |
|
1,458 |
|
1,244 |
|
a. |
|
Non-recurring items |
|
|
These costs are not indicative of our cost of production and have
been excluded from the calculation of total cash costs. |
b. |
|
Other |
|
|
Other adjustments for the three and nine month periods ended
September 30, 2022 include the removal of total cash costs and
by-product credits associated with Pierina, Golden Sunlight,
Lagunas Norte up until its divestiture in June 2021, and Buzwagi
starting the fourth quarter of 2021, which all are producing
incidental ounces, of $7 million and $17 million, respectively
(June 30, 2022: $7 million; September 30, 2021: $6
million and $44 million, respectively). |
c. |
|
Non-controlling
interests |
|
|
Non-controlling interests include non-controlling interests related
to gold production of $491 million and $1,472 million,
respectively, for the three and nine month periods ended
September 30, 2022 (June 30, 2022: $505 million and
September 30, 2021: $481 million and $1,396 million,
respectively). Non-controlling interests include Nevada Gold Mines,
Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara, Bulyanhulu, and
Buzwagi up until the third quarter of 2021. Refer to Note 5 to the
Financial Statements for further information. |
d. |
|
Exploration and
evaluation costs |
|
|
Exploration, evaluation and project expenses are presented as
minesite sustaining if it supports current mine operations and
project if it relates to future projects. Refer to page 50 of
Barrick’s Q3 2022 MD&A. |
e. |
|
Capital
expenditures |
|
|
Capital expenditures are related to our gold sites only and are
split between minesite sustaining and project capital expenditures.
Project capital expenditures are capital spending at new projects
and major, distinct projects at existing operations intended to
increase net present value through higher production or longer mine
life. Significant projects in the current year are the expansion
project at Pueblo Viejo, construction of the Third Shaft at
Turquoise Ridge, and the Veladero Phase 7 expansion. Refer to page
49 of Barrick’s Q3 2022 MD&A. |
f. |
|
Rehabilitation—accretion
and amortization |
|
|
Includes depreciation on the assets related to rehabilitation
provisions of our gold operations and accretion on the
rehabilitation provision of our gold operations, split between
operating and non-operating sites. |
g. |
|
Non-controlling interest
and copper operations |
|
|
Removes general &
administrative costs related to non-controlling interests and
copper based on a percentage allocation of revenue. Also removes
exploration, evaluation and project expenses, rehabilitation costs
and capital expenditures incurred by our copper sites and the
non-controlling interest of Nevada Gold Mines (including South
Arturo), Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara,
Bulyanhulu, and Buzwagi (up until the third quarter of 2021)
operating segments. It also includes capital expenditures
applicable to our equity method investment in Kibali. Figures
remove the impact of Pierina, Golden Sunlight, Lagunas Norte up
until its divestiture in June 2021, and Buzwagi starting the fourth
quarter of 2021. The impact is summarized as the following: |
($
millions) |
For the three months ended |
|
For the nine months ended |
|
Non-controlling interest, copper operations and other |
9/30/22 |
|
6/30/22 |
|
9/30/21 |
|
9/30/22 |
|
9/30/21 |
|
General & administrative costs |
(5 |
) |
(5 |
) |
(4 |
) |
(23 |
) |
(17 |
) |
Minesite exploration and
evaluation expenses |
(9 |
) |
(7 |
) |
(7 |
) |
(19 |
) |
(17 |
) |
Rehabilitation - accretion and
amortization (operating sites) |
(3 |
) |
(4 |
) |
(4 |
) |
(10 |
) |
(11 |
) |
Minesite sustaining capital expenditures |
(247 |
) |
(205 |
) |
(125 |
) |
(609 |
) |
(400 |
) |
All-in sustaining costs total |
(264 |
) |
(221 |
) |
(140 |
) |
(661 |
) |
(445 |
) |
Global exploration and evaluation and project expense |
(9 |
) |
(11 |
) |
(4 |
) |
(24 |
) |
(13 |
) |
Project capital expenditures |
(62 |
) |
(57 |
) |
(49 |
) |
(173 |
) |
(156 |
) |
All-in costs total |
(71 |
) |
(68 |
) |
(53 |
) |
(197 |
) |
(169 |
) |
h. |
|
Ounces sold - equity basis |
|
|
Figures remove the impact of: Pierina, Golden Sunlight, Lagunas
Norte up until its divestiture in June 2021, and Buzwagi starting
the fourth quarter of 2021. Some of these assets are producing
incidental ounces while in closure or care and maintenance. |
i. |
|
Cost of sales per
ounce |
|
|
Figures remove the cost of sales impact of: Pierina of $6 million
and $17 million, respectively, for the three and nine month
periods ended September 30, 2022 (June 30, 2022: $8
million and September 30, 2021: $6 million and $13 million,
respectively); Golden Sunlight of $nil and $nil, respectively, for
the three and nine month periods ended September 30, 2022
(June 30, 2022: $nil and September 30, 2021: $nil and
$nil, respectively); up until its divestiture in June 2021, Lagunas
Norte of $nil and $nil, respectively, for the three and nine month
periods ended September 30, 2022 (June 30, 2022: $nil and
September 30, 2021: $nil and $37 million, respectively); and
starting the fourth quarter of 2021, Buzwagi of $nil and $nil,
respectively, for the three and nine month periods ended
September 30, 2022 (June 30, 2022: $nil and
September 30, 2021: $nil and $nil, respectively), which are
producing incidental ounces. Gold cost of sales per ounce is
calculated as cost of sales across our gold operations (excluding
sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using Barrick's ownership
share). |
j. |
|
Per ounce
figures |
|
|
Cost of sales per ounce, total cash costs per ounce, all-in
sustaining costs per ounce and all-in costs per ounce may not
calculate based on amounts presented in this table due to
rounding. |
k. |
|
Co-product costs per
ounce |
|
|
Total cash costs per ounce,
all-in sustaining costs per ounce and all-in costs per ounce
presented on a co-product basis removes the impact of by-product
credits of our gold production (net of non-controlling interest)
calculated as: |
($
millions) |
For the three months ended |
|
For the nine months ended |
|
|
9/30/22 |
|
6/30/22 |
|
9/30/21 |
|
9/30/22 |
|
9/30/21 |
|
By-product credits |
50 |
|
51 |
|
86 |
|
156 |
|
215 |
|
Non-controlling interest |
(16 |
) |
(18 |
) |
(27 |
) |
(53 |
) |
(83 |
) |
By-product credits (net of non-controlling interest) |
34 |
|
33 |
|
59 |
|
103 |
|
132 |
|
Endnote 12
“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, sustaining leases, general and
administrative costs, minesite exploration and evaluation costs,
royalties and production taxes, reclamation cost accretion and
amortization and write-downs taken on inventory to net realizable
value. Management believes that the use of “C1 cash costs” per
pound and “all-in sustaining costs” per pound will enable investors
to better understand the operating performance of our copper mines
as this measure reflects all of the sustaining expenditures
incurred in order to produce copper. “C1 cash costs” per pound and
“All-in sustaining costs” per pound are intended to provide
additional information only and do not have standardized
definitions under IFRS and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. Other companies may calculate these measures
differently. Further details on these non-GAAP financial
performance 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
($
millions, except per pound information in dollars) |
For the three months ended |
|
For the nine months ended |
|
|
9/30/22 |
|
6/30/22 |
|
9/30/21 |
|
9/30/22 |
|
9/30/21 |
|
Cost of sales |
172 |
|
143 |
|
162 |
|
469 |
|
435 |
|
Depreciation/amortization |
(59 |
) |
(34 |
) |
(60 |
) |
(131 |
) |
(154 |
) |
Treatment and refinement charges |
54 |
|
47 |
|
42 |
|
152 |
|
122 |
|
Cash cost of sales applicable to equity method investments |
81 |
|
74 |
|
74 |
|
227 |
|
225 |
|
Less: royalties |
(23 |
) |
(32 |
) |
(27 |
) |
(87 |
) |
(75 |
) |
By-product credits |
(2 |
) |
(6 |
) |
(2 |
) |
(11 |
) |
(9 |
) |
Other |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
C1 cash costs |
223 |
|
192 |
|
189 |
|
619 |
|
544 |
|
General & administrative costs |
4 |
|
6 |
|
3 |
|
22 |
|
13 |
|
Rehabilitation - accretion and amortization |
0 |
|
1 |
|
1 |
|
2 |
|
4 |
|
Royalties |
23 |
|
32 |
|
27 |
|
87 |
|
75 |
|
Minesite exploration and evaluation costs |
8 |
|
5 |
|
3 |
|
16 |
|
9 |
|
Minesite sustaining capital expenditures |
115 |
|
89 |
|
40 |
|
271 |
|
130 |
|
Sustaining leases |
1 |
|
2 |
|
2 |
|
4 |
|
6 |
|
All-in sustaining costs |
374 |
|
327 |
|
265 |
|
1,021 |
|
781 |
|
Pounds sold - consolidated basis (millions pounds) |
120 |
|
113 |
|
101 |
|
346 |
|
310 |
|
Cost of sales per pounda,b |
2.30 |
|
2.11 |
|
2.57 |
|
2.21 |
|
2.36 |
|
C1 cash cost per pounda |
1.86 |
|
1.70 |
|
1.85 |
|
1.79 |
|
1.75 |
|
All-in sustaining costs per pounda |
3.13 |
|
2.87 |
|
2.60 |
|
2.96 |
|
2.52 |
|
- 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.
- Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share).
Endnote 13
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.
Endnote 14
See the Technical Report on the Pueblo Viejo mine, Sanchez
Ramirez Province, Dominican Republic, dated March 19, 2018, and
filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov on March
23, 2018.
Endnote 15
Proven and probable mineral reserves added since the formation
of the NGM joint venture on July 1, 2019, calculated before
depletion based on NGM’s total proven and probable mineral reserves
estimated as of December 31, 2021, including the 40% interest in
South Arturo that NGM acquired in 2021 and that it did not already
own, compared to the total pro forma proven and probable mineral
reserves of NGM estimated as of December 31, 2018, including NGM’s
then 60% interest in South Arturo. See endnote 17 and endnote
18.
Endnote 16
Inferred mineral resources added since the formation of the NGM
joint venture on July 1, 2019, based on NGM’s total inferred
resources estimated as of December 31, 2021, including the 40%
interest in South Arturo that NGM acquired in 2021 and that it did
not already own, compared to the total pro forma inferred resources
of NGM estimated as of December 31, 2018, including NGM’s then 60%
interest in South Arturo and excluding Barrick’s 100% owned
Fourmile project. See endnote 17 and endnote 18.
Endnote 17
The pro forma reserves and resources figures of Nevada Gold
Mines set out below were derived by adding the respective reserves
and resources in respect of Nevada operations reported by Barrick
in its 2018 Annual Information Form and Newmont in its press
release dated February 21, 2019 reporting its 2018 Reserves and
Resources and its annual report on Form 10-K for the fiscal year
ended December 31, 2018 in respect of the relevant Nevada
properties. The pro forma reserves and resources are provided for
illustrative purposes only. Barrick and Newmont calculated such
figures based on different standards and assumptions, and
accordingly such figures may not be directly comparable and the pro
forma reserves and resources may be subject to adjustments due to
such differing standards and assumptions. In particular, Barrick
mineral reserves and resources have been prepared according to
Canadian Institute of Mining, Metallurgy and Petroleum 2014
Definition Standards for Mineral Resources and Mineral Reserves as
incorporated by National Instrument 43-101 – Standards of
Disclosure for Mineral Projects, which differ from the requirements
of U.S. securities laws. Newmont’s reported reserves were prepared
in compliance with Industry Guide 7 published by the SEC, however
at that time, the SEC did not recognize the terms “resources” and
“measured and indicated resources”. Newmont had determined that its
reported “resources” would be substantively the same as those
prepared using Guidelines established by the Society of Mining,
Metallurgy and Exploration (SME) and that its reported measured and
indicated resources (combined) were equivalent to “Mineralized
Material” disclosed in its annual report on Form 10-K.
Reserves and resources of Barrick in Nevada are stated on an
attributable basis as of December 31, 2018 and include Goldstrike,
Cortez, Goldrush, South Arturo (60%) and Turquoise Ridge (75%).
Proven reserves of 84.4 million tonnes grading 4.36 g/t,
representing 11.8 million ounces of gold. Probable reserves of
155.6 million tonnes grading 2.93 g/t, representing 14.7 million
ounces of gold. Measured resources of 13.5 million tonnes grading
4.22 g/t, representing 1.8 million ounces of gold. Indicated
resources of 101.6 million tonnes grading 4.34 g/t, representing
14.2 million ounces of gold. Inferred resources of 28.7 million
tonnes grading 5.2 g/t, representing 4.8 million ounces of gold.
Complete mineral reserve and resource data for all Barrick mines
and projects referenced in this press release as of December 31,
2018, including tonnes, grades, and ounces, as well as the
assumptions on which the mineral reserves for Barrick are reported,
are set out in Barrick’s 2018 Annual Information Form issued on
March 22, 2019.
Reserves and resources of Newmont in Nevada are stated on an
attributable basis as of December 31, 2018 and include Carlin,
Phoenix, Twin Creeks (including Newmont’s 25% equity in Turquoise
Ridge) and Long Canyon. Proven reserves of 46.6 million tonnes
grading 3.84 g/t, representing 5.8 million ounces of gold. Probable
reserves of 378.1 million tonnes grading 1.32 g/t, representing
16.0 million ounces of gold. Measured resources of 19.7 million
tonnes grading 2.2 g/t, representing 1.4 million ounces of gold.
Indicated resources of 244.4 million tonnes grading 1.27 g/t,
representing 10.0 million ounces of gold. Inferred resources of
45.5 million tonnes grading 1.81 g/t, representing 2.7 million
ounces of gold. Complete mineral reserve and resource data for all
Newmont mines and projects referenced in this press release as of
December 31, 2018, including tonnes, grades, and ounces, as well as
the assumptions on which the mineral reserves for Newmont are
reported, are set out in Newmont’s press release dated February 21,
2019 reporting its 2018 Reserves and Resources and its annual
report on Form 10-K for the fiscal year ended December 31,
2018.
Below is additional reserve and resource data in respect of
Nevada Gold Mines as of December 31, 2018:
|
2018 PROFORMA GOLD MINERAL RESERVES |
PROVEN |
PROBABLE |
PROVEN & PROBABLE |
Tonnes |
Grade |
Contained ozs |
Tonnes |
Grade |
Contained ozs |
Tonnes |
Grade |
Contained ozs |
|
Mt |
(gm/t) |
Moz |
Mt |
(gm/t) |
Moz |
Mt |
(gm/t) |
Moz |
Barrick in Nevada |
84 |
4.36 |
12 |
160 |
2.93 |
15 |
240 |
3.43 |
27 |
Newmont in Nevada |
47 |
3.84 |
5.8 |
380 |
1.32 |
16 |
420 |
1.6 |
22 |
NEVADA GOLD MINES |
131 |
4.18 |
18 |
530 |
1.79 |
31 |
660 |
2.26 |
48 |
|
2018 PROFORMA GOLD MINERAL RESOURCES (Exclusive of Mineral
Reserves) |
MEASURED |
INDICATED |
M&I |
INFERRED |
Tonnes |
Grade |
Contained ozs |
Tonnes |
Grade |
Contained ozs |
Tonnes |
Grade |
Contained ozs |
Tonnes |
Grade |
Contained ozs |
Mt |
(gm/t) |
Moz |
Mt |
(gm/t) |
Moz |
Mt |
(gm/t) |
Moz |
Mt |
(gm/t) |
Moz |
Barrick in Nevada |
14 |
4.22 |
1.8 |
102 |
4.34 |
14 |
115 |
4.32 |
16 |
29 |
5.2 |
4.8 |
Newmont in Nevada |
20 |
2.19 |
1.4 |
240 |
1.27 |
10 |
270 |
1.34 |
11 |
46 |
1.8 |
2.7 |
NEVADA GOLD MINES |
33 |
3.02 |
3.2 |
350 |
2.17 |
24 |
380 |
2.24 |
27 |
74 |
3.1 |
7.5 |
Endnote 18
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, 2021, unless otherwise noted. Reserves and resources
for NGM as of December 31, 2021 are stated on a 100% basis. Proven
reserves of 99 million tonnes grading 4.82 g/t, representing 15
million ounces of gold. Probable reserves of 422 million tonnes
grading 2.58 g/t, representing 35 million ounces of gold. Measured
resources of 168 million tonnes grading 4.13 g/t, representing 22
million ounces of gold. Indicated resources of 923 million tonnes
grading 1.85 g/t, representing 55 million ounces of gold. Inferred
resources of 305 million tonnes grading 1.6 g/t, representing 16
million ounces of gold. Inferred resources for North Leeville -
Carlin of 1.9 million tonnes grading 11.5 g/t, representing 0.70
million ounces of gold. Complete mineral reserve and mineral
resource data for all mines and projects referenced in this press
release as of December 31, 2021, including tonnes, grades, pounds,
and ounces, can be found on pages 34-47 of Barrick’s 2021 Annual
Information Form / Form 40-F on file with the Canadian provincial
securities regulators on SEDAR at www.sedar.com and the Securities
and Exchange Commission on EDGAR at www.sec.gov.
Endnote 19
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 20
Total 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 21
Subject to change following completion of the updated
feasibility study.
Endnote 22
On a 100% basis.
Endnote 23
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 24
Included within our 61.5% interest in Carlin is Nevada Gold
Mines' 100% interest in South Arturo.
Endnote 25
Includes Goldrush.
Endnote 26
Porgera was placed on temporary care and maintenance on April
25, 2020 and remains excluded from our 2022 guidance. We expect to
update our guidance to include Porgera following both the execution
of definitive agreements to implement the Commencement Agreement
and the finalization of a timeline for the resumption of full mine
operations. Refer to page 8 of Barrick’s Q3 2022 MD&A for
further details.
Endnote 27
Total cash costs and all-in sustaining costs per ounce include
costs allocated to non-operating sites.
Endnote 28
Operating division guidance ranges reflect expectations at each
individual operating division, and may not add up to the
company-wide guidance range total. Guidance ranges exclude Pierina
which is producing incidental ounces while in closure.
Endnote 29
Includes corporate administration costs.
Endnote 30
EBITDA is a non-GAAP financial performance 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; and other expense adjustments. We also remove 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 definition under IFRS and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Other companies may calculate EBITDA and
adjusted EBITDA differently. Further details on these non-GAAP
financial performance 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
($
millions) |
For the three months ended |
|
For the nine months ended |
|
|
9/30/22 |
|
6/30/22 |
|
9/30/21 |
|
9/30/22 |
|
9/30/21 |
|
Net earnings |
410 |
|
717 |
|
612 |
|
1,833 |
|
2,136 |
|
Income tax expense |
215 |
|
279 |
|
323 |
|
795 |
|
1,040 |
|
Finance costs, neta |
55 |
|
73 |
|
80 |
|
204 |
|
233 |
|
Depreciation |
457 |
|
476 |
|
538 |
|
1,393 |
|
1,545 |
|
EBITDA |
1,137 |
|
1,545 |
|
1,553 |
|
4,225 |
|
4,954 |
|
Impairment charges (reversals)
of long-lived assetsb |
24 |
|
3 |
|
10 |
|
29 |
|
(77 |
) |
Acquisition/disposition
gainsc |
(64 |
) |
(20 |
) |
(5 |
) |
(86 |
) |
(15 |
) |
Loss on currency
translation |
3 |
|
6 |
|
5 |
|
12 |
|
16 |
|
Other (income) expense
adjustmentsd |
(27 |
) |
(95 |
) |
12 |
|
(109 |
) |
37 |
|
Income
tax expense, net finance costs, and depreciation from equity
investees |
82 |
|
88 |
|
94 |
|
256 |
|
273 |
|
Adjusted EBITDA |
1,155 |
|
1,527 |
|
1,669 |
|
4,327 |
|
5,188 |
|
- Finance costs exclude accretion.
- For the three and nine month periods ended September 30, 2022,
net impairment charges mainly relate to an inventory write-off at
Lumwana. Net impairment reversals for the nine months ended
September 30, 2021 mainly relate to non-current asset reversals at
Lagunas Norte.
- For the three and nine month periods ended September 30, 2022,
acquisition/disposition gains relate to the sale of a portfolio of
royalties to Maverix Metals Inc. and the sale of a portfolio of
royalties by Nevada Gold Mines to Gold Royalty Corp.
- For the three month periods ended September 30, 2022 and June
30, 2022 and for the nine month period ended September 2022, other
(income) expense adjustments mainly relate to changes in the
discount rate assumptions on our closed mine rehabilitation
provision. Other (income) expense adjustments for all periods were
also impacted by care and maintenance expenses at Porgera.
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
TSX Trust CompanyP.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 and Chief Financial
OfficerGraham Shuttleworth+1 647 262 2095+44 779
771 1338
Investor and Media RelationsKathy du Plessis+44
20 7557 7738Email: barrick@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”, “strategy”, “target”, “plan”, “on
track”, “opportunities”, “guidance”, “project”, “continue”,
“committed”, “estimate”, “potential”, “progress”, “proposed”,
“warns”, “future”, “prospect”, “focus”, “during”, “ongoing”,
“following”, “subject to”, “scheduled”, “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;
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
our growth projects; potential mineralization and metal or mineral
recoveries; new opportunities for innovations and discoveries at
Nevada Gold Mines; the timeline and process for the reconstitution
of a joint venture to carry out the future development and
operation of the Reko Diq project; the planned updating of the
historical Reko Diq feasibility study and our plans upon the
project’s reconstitution; the proposed fiscal terms applicable to
the Reko Diq project and the joint venture through which it is
held; the timeline for execution and effectiveness of definitive
agreements and formation of a new joint venture to implement the
Framework Agreement between Papua New Guinea and Barrick (Niugini)
Limited; the duration of the temporary suspension of operations at
Porgera, the conditions for the reopening of the mine and the
timeline to recommence operations; the potential impact of local
currency restrictions, inflation and taxation in Argentina on
Veladero; our pipeline of high confidence projects at or near
existing operations, including the potential for a super pit at
Jabal Sayid; expected production and cost levels for the North Mara
and Bulyanhulu mines and their potential to achieve Tier One status
as a combined complex; Barrick’s partnership with the Government of
Tanzania under the framework agreement; Lumwana’s potential for
future growth and ability to further extend the life of mine,
including through the development of a super pit; the anticipated
impact of Zambia’s new royalty tax regime; Barrick’s strategy,
plans, targets and goals in respect of environmental and social
governance issues, including local community relations and
investments (including local content programs and community
investment in Nevada, Argentina and Africa), climate change,
greenhouse gas emissions reduction targets, tailings storage
facility management (including compliance with the Global Industry
Standard on Tailings Management), health and safety performance and
biodiversity initiatives; Barrick’s performance dividend policy and
share buyback program; 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; risks associated with diseases, epidemics and pandemics,
including the effects and potential effects of the global Covid-19
pandemic; risks related to the failure of internal controls; and
risks related to the impairment of the Company’s goodwill and
assets. Barrick also cautions that its 2022 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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