Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) built on the solid
foundation it laid last year with a robust first quarter
performance from all operations in the face of the challenges
presented by the global Covid-19 pandemic.
Q1 gold production and costs were consistent with full year
guidance; debt net of cash was reduced by a further 17% from the
end of Q4 to $1.85 billion with no significant maturities until
2033; operating cash flow increased to $889 million and free cash
flow1 to $438 million from Q4; net earnings per share was 22 cents;
adjusted net earnings per share2 was 16 cents; and the quarterly
dividend of 7 cents per share was maintained.
Financial and Operating Highlights
|
Financial Results |
Q1 2020 |
Q4
2019 |
Q1
2019 |
| Realized gold
price3,4($ per ounce) |
1,589 |
|
1,483 |
|
1,307 |
|
| Net earnings5($ millions) |
400 |
|
1,387 |
|
111 |
|
| Adjusted net earnings2($ millions) |
285 |
|
300 |
|
184 |
|
| Net cash provided by operatingactivities ($ millions) |
889 |
|
875 |
|
520 |
|
| Free cash flow1($ millions) |
438 |
|
429 |
|
146 |
|
| Net earnings per share($) |
0.22 |
|
0.78 |
|
0.06 |
|
| Adjusted net earningsper share2 ($) |
0.16 |
0.17 |
|
0.11 |
| Total attributable
capitalexpenditures6 ($ millions) |
364 |
|
393 |
|
361 |
|
| Operating Results |
Q1 2020 |
Q4 2019 |
Q1 2019 |
|
Gold |
| Production4(000s of ounces) |
1,250 |
|
1,439 |
|
1,367 |
|
| Cost of sales (Barrick's share)4,7($ per ounce) |
1,020 |
|
1,046 |
|
947 |
|
| Total cash costs4,8($ per ounce) |
692 |
692 |
631 |
| All-in sustaining costs4,8($ per ounce) |
954 |
|
923 |
|
825 |
|
|
Copper |
|
|
|
| Production9(millions of pounds) |
115 |
|
117 |
|
106 |
|
| Cost of sales (Barrick's share)9,10($ per pound) |
1.96 |
|
2.26 |
|
2.21 |
|
| C1 cash costs9,11($ per pound) |
1.55 |
|
1.90 |
|
1.66 |
|
| All-in sustaining
costs9,11($ per pound) |
2.04 |
2.82 |
2.46 |
Key Performance Indicators
- Solid start to the year from all operations
- Gold production and costs were consistent with full year
guidance
- Debt, net of cash, down a further 17% to $1.85 billion with no
significant maturities until 2033
- Operating Cash Flow increased to $889 million and Free Cash
Flow1 to $438 million from Q4
- Net earnings per share of 22 cents and adjusted net earnings
per share2 of 16 cents for the quarter
- Copper costs per pound significantly lower demonstrating
resilience of business
- Successful completion of Massawa sale creates value for all
stakeholders
- Signing of framework agreement in Tanzania paves way for
exporting concentrate
- Continued focus on safety delivers improvements in injury
rates
- 2019 Annual Report highlights ten-year plan as Barrick looks to
next phase of value creation
- Proactive engagement with all stakeholders ensures protection
of our people and supports sustainability of the business during
Covid-19 pandemic
- Barrick's sustainability vision demonstrated by publication of
industry-first ESG scorecard
- Brownfields exploration success points to life of mine
extensions
- Global exploration portfolio expanded with new projects and
targets
- Barrick declares $0.07 quarterly dividend per share
President and CEO Mark Bristow said operational and financial
delivery were on plan despite the fact that the group’s prime focus
during the latter part of the quarter had been on ensuring the
safety of Barrick’s people, communities and business in the face of
the novel coronavirus pandemic, while also coping with the
restrictive conditions imposed by governments.
“Our sustainability and regional teams have done a great job in
taking timely action to introduce comprehensive and carefully
considered measures at all our sites and offices to manage and
mitigate any impacts of Covid-19 on our employees and contractors.
A key focus of this plan is on prevention, and all sites are
working actively to head off an outbreak,” he said.
“In Barrick’s spirit of partnership, we have extended Covid-19
support to our local communities and our host countries and are
working closely with their health authorities. To date we have
donated more than $20 million to our host countries, many of whom
have limited healthcare facilities, to fund the purchase of medical
equipment and PPE.”
Highlights of the quarter included the closing of the sale of
the Massawa project, which has created immediate value for all
stakeholders, including Barrick. In Tanzania, the signing of the
framework agreement with the government paved the way for the
resumption of concentrate exports.
Brownfields exploration continues to replenish reserves depleted
by mining while Barrick’s generative exploration programs are
identifying new projects and targets, and expanding its global
reach. Among other things, Barrick has formed an alliance with
Japan Gold, holder of the largest exploration property portfolio in
Japan.
Since the end of the quarter, the government of Papua New Guinea
has announced that it will not renew Barrick Niugini Limited’s
20-year Special Mining Lease for the Porgera gold mine. Barrick has
said it will contest the move, which it regards as tantamount to
nationalization without due process. In the meantime, BNL has
placed Porgera on temporary care and maintenance. In addition, due
to the uncertainty related to the timing and scope of future
developments on the mine’s operating outlook, we are withdrawing
our full year 2020 guidance for Porgera at this time. As this is a
rapidly evolving situation, we will reassess on an ongoing basis
and provide further updates in due course, while maintaining
operational readiness.
Bristow said regardless of new discoveries, organic growth from
its existing asset base — which includes six Tier One gold mines —
would sustain Barrick’s recently published ten-year plan that
projects annual production of around five million ounces of gold
(subject to adjustment based on the outcome of the process with the
Government of Papua New Guinea with respect to the Porgera Special
Mining Lease extension). A Tier One gold mine is one which has a
life of at least 10 years and produces more than 500,000 ounces of
gold per annum in the lower half of the industry cost range.
Barrick has also published an industry-first ESG scorecard to
transparently report on its performance in terms of health and
safety; social and economic development; human rights; the
environment; and governance.
“Overall we scored a B grade, which we believe accurately
reflects our improvement in sustainability performance over the
year but also acknowledges that there is still some work to be
done,” Bristow said.
Conference Call and Webinar
Please join us for an interactive webinar today at 11:00
EDT/15:00 UTC to discuss the results.
WebinarUS and Canada, 1 800 319 4610UK, 0808 101
2791International, +1 416 915 3239
The webinar will remain on the website for later viewing and the
conference call will be available for replay by telephone at 1 855
669 9658 (US and Canada toll-free) and +1 604 674 8052
(international toll), access code 4363.
PRO-ACTIVE PREPARATION, RAPID RESPONSE BUFFER COVID-19
IMPACT
Barrick’s deeply embedded health and safety culture,
combined with its flat organizational structure and agile
management style, cushioned the initial impact of the coronavirus
pandemic on its people, communities and business.
President and CEO Mark Bristow says while crises of one kind or
another are endemic in big mining organizations, Covid-19 is a true
Black Swan event.
“Fortunately, Barrick had the management capacity to take
immediate and effective action based on well-established health and
safety resources and procedures. The streamlined corporate
structure we introduced last year, the strong regional executive
teams we established, and the transfer of greater authority to the
operations all contributed to fast decision-making and prompt
execution. We could also draw on the experience Randgold gained in
dealing with two Ebola outbreaks in Africa,” he says.
Group sustainability executive Grant Beringer says Barrick is
employing a ‘4 P’ strategy to protect its employees, contractors
and communities. The four Ps are Proactive
Response, Preparedness,
Prevention and Perspective.
Among many other things, these headings cover updating Emergency
Response Plans at each site, introducing a Trigger/Threat Action
Response Plan and the establishment of Outbreak Control Teams for
all mines. Temperature screening is carried out at all access
points to the sites and offices, rapid antibody test kits are being
rolled out across the group, and social distancing and hygiene
protocols have been put in place.
“We believe that education and communication are key components
of an effective Covid-19 campaign. Our workforce is regularly
updated on the latest developments and our plans. Fact sheets with
specific information on symptoms, hygiene and social distancing,
designed to prevent scaremongering or self-medication with
potentially hazardous substances, have been distributed to
everybody at Barrick. Daily situation reports from each region are
circulated throughout the organization.”
Beringer says Barrick is also engaging closely with its host
authorities and communities to support them in their fight against
the pandemic. To date, Barrick has provided host governments with
funding of more than $20 million, mainly to acquire specialized
medical equipment. In addition, the company’s operations and
subsidiaries have also been individually involved in a number of
diverse but effective local charitable initiatives where the need
for intervention has been identified.
Barrick has also taken steps to ensure that its operations
continue to enjoy an uninterrupted supply chain, proactively
engaging with key suppliers to mitigate volatility and uncertainty.
With an integrated supply chain stretching over multiple
continents, dedicated international logistics partners and strong
relationships with key suppliers, Barrick has been afforded the
flexibility to deal with the challenges in an agile manner.
“Not only have we focused on remaining active in ensuring we
have alternate procurement and logistic arrangements in place, we
have also increased the stocks of consumables and other fast moving
items at our mines. At the same time, the team has been there to
assist in procuring those often scarce PPE and other medical
supplies needed by our host countries,” says Barrick’s group supply
chain and commercial executive Riaan Grobler.
CLEARING THE AIR, CURBING THE COST
Barrick’s clean energy strategy is playing a significant
and growing part in reducing the impact of its operations on the
environment. At the same time, it is also steadily reducing their
cost profile.
Metallurgy, engineering and capital projects executive John
Steele says the company is investing in cleaner energy projects
across all its operations with the aim of cutting more than 1.5
million tonnes of CO2 per year from their GHG emissions. This marks
a major advance in a journey that has taken Barrick and legacy
company Randgold from diesel and coal through heavy fuel oil and
then to natural gas, hydro electric and solar power.
The group’s second solar power plant is currently being
installed at Loulo in Mali. When the 20MW station is commissioned
in September this year, it is expected to reduce diesel consumption
by 10 million litres and CO2 emissions by 27,000 tonnes per
year.
Kibali in the DRC relies mainly on the hydropower generated by
its three stations, but in a move to further reduce diesel
consumption, a 9MW battery has been installed to provide power
surge capacity which is currently supplied by generators. This will
reduce the need for thermal power top-ups at an estimated saving of
4.5 million litres of diesel and 8,000 tonnes of CO2 per year.
Despite its remote location, the inclusion of seasonal hydro power
allows Kibali to deliver power at an annual average of 10 cents per
kWh.
Nevada Gold Mines (NGM) has two power generation facilities in
northern Nevada with the TS Power Plant in Dunphy and the Western
102 Power Plant outside of Reno. The TS Power Plant began
operations in 2008 and has a capacity of 215MW power generation
from its original coal-fired process. The Western 102 Power Plant
has a capacity of 115MW, supplying power from natural gas fired
generators, and a 1MW Solar Facility.
NGM has embarked on a project to replace the last of its
coal-powered stations with natural gas to achieve an estimated
annual CO2 saving of 650,000 tonnes. Permit approval is expected in
the fourth quarter of this year. NGM has also started a permitting
process for a 200MW solar plant. The 100MW first phase of the
project is expected to save 130,000 tonnes of CO2 annually.
“Nevada Gold Mines is committed to providing its operations
low-cost, secure power generation through northeastern Nevada’s
power grid now and into the future. The conversion of NGM’s TS
Power Plant and the potential for an additional solar power
facility illustrates this commitment while reducing the mines’
carbon emissions,” said Greg Walker, executive managing director,
NGM.
In the Dominican Republic, the Quisqueya 1 power plant has been
converted to accept natural gas instead of heavy fuel oil. It is
expected to cut Pueblo Viejo’s CO2 emissions by 260,000 tonnes per
year.
In Latin America, construction of the 23 kilometre cross-Andes
powerline, which will link Veladero in Argentina with the Chilean
grid, is underway. Sustainable power from the Chilean grid — which
globally has the largest percentage of renewable energy in its
supply — will replace 25MW of diesel-fired generation on site. This
is expected to save 32 million litres of fuel per year, as well as
the considerable cost of trucking it up the Andes, and cut CO2
emissions by 83,000 tonnes.
BARRICK PUBLISHES INDUSTRY-FIRST ESG
SCORECARD
Long before ESG became a metric, its principles were
embedded in every aspect of Barrick’s and Randgold’s businesses,
helping management to make better decisions, de-risk projects,
discover new opportunities, maintain a social license and deliver
real value to stakeholders.
Following the very comprehensive post-merger Sustainability
Report Barrick published last year, this year’s even more detailed
report features the mining industry’s first ESG scorecard.
Developed with the assistance of independent sustainability
consultants, it rates Barrick’s performance against its peers on
social and economic development; health and safety; the environment
and human rights; and governance.
Group sustainability executive Grant Beringer says Barrick is
committed to transparently measuring and reporting its
performance.
“The 2019 scorecard gave Barrick a B grade, which reflects the
improvements in sustainability performance we have made across the
group through the year; however, we have not yet met all the high
standards we have set for ourselves, and there is still work to be
done,” he says.
“We are committed to improving our performance and our grade,
and will be tracking our progress on a monthly basis. An updated
scorecard will be published at the end of Q2 this year.”
GOLDEN SUNLIGHT CLOSURE SOLUTION SECURES SULPHIDE
FEEDSTOCK FOR NGM
Conventional closure methods would have left Barrick’s
Golden Sunlight mine in Montana with the burden of water treatment
in perpetuity.
Barrick engineers worked out, however, that the tailings were a
significant sulphide resource (as well as containing some gold)
that could be used to produce a sulphide concentrate through
flotation. This would remove a potential ground water pollutant,
minimizing its post-closure water treatment needs and reducing the
mine’s overall environmental liability.
In addition, in a unique win-win deal, Nevada Gold Mines has
agreed to purchase the concentrate from Golden Sunlight. Golden
Sunlight will receive a stable long-term price for its concentrate
while NGM has secured a new fuel supply (with a gold price upside)
for its refractory process plants for at least the next five
years.
NEW EXPLORATION DRIVE EXTENDS ASSET BASE, BRINGS NEXT
TIER ONE DISCOVERY CLOSER
Since geology was reinstated as the flywheel of the
Barrick engine, the group’s exploration teams have made significant
advances in replenishing the company’s reserves as well as stepping
up the search for the next big discovery.
“As a geology centric organization, we understand that major
discoveries are increasingly rare,” says executive VP exploration
and growth Rob Krcmarov. “What is required now is a much deeper
geological insight at both the orebody and district level.”
During the past quarter, significant advances have been
made on three projects. At Turquoise Ridge in Nevada, upgrading the
geological understanding has already identified multiple targets,
including open-ended mineralization and untested structural
intersections in favorable host rock below the mine. In the DRC,
new trends that have emerged in the central and northern parts of
the Kibali permit have shown the potential for high grade
mineralization. In Tanzania, a full relog and remodel of the
Gokona/Nyabigena deposit has materially changed the understanding
of the controls on mineralization, leading to the identification of
multiple open targets with the potential to grow the resources
beyond depletion for the foreseeable future.
President and CEO Mark Bristow says in order for Barrick to be a
global leader it needs a global presence.
“We’re already on the ground in all of the world’s major gold
destinations aside from Russia and East Europe. We’re looking at a
future built around our existing big operations in Central, East
and West Africa, in Nevada, the world’s most prolific goldfield, in
the massively underexplored Dominican Republic, and along the
Andean trend. But we’re also looking at new frontiers such as
Japan, where we’ve formed an alliance with the holder of the
largest exploration portfolio in the country. What’s particularly
interesting to us is that while Japan hosts one of the world’s
highest-grade gold mines, it has seen no modern exploration,” he
says.
REVITALIZED VELADERO POISED FOR NEW FUTURE
The life of the Veladero gold mine in Argentina has been
extended to at least 10 years following a comprehensive review of
its strategy and business plan, says Barrick president and CEO Mark
Bristow.
Bristow was briefing an Argentinian audience of local media,
government authorities and local business and community leaders on
the mine’s progress from Barrick’s offices in Chile, via a video
conference to comply with the Covid-19 related travel restrictions
imposed by Argentina.
“Our review included the reinterpretation of the mine’s geology
and an ongoing infill drilling campaign. We established exploration
and resource management teams to identify satellite orebodies with
the potential to deliver an increase in resources and reserves. Our
aim is to extend Veladero’s life of mine beyond 2030 and elevate it
to a Tier One mine,” he said. Barrick defines a Tier One mine as
one that will produce at least 500,000 ounces per annum, has a life
of more than ten years and total cash costs per ounce8 at the lower
half of the industry range.
Bristow said the next step in Veladero’s transformation would be
to connect the mine to cleaner, cheaper power from the grid in
neighboring Chile. Once commissioned in the second half of this
year, this could halve the mine’s carbon footprint and potentially
reduce its cut-off grade, creating an opportunity to further
increase the mineable reserves.
Projects related to revitalizing Veladero, such as the leach pad
expansion, have created new employment opportunities, with the
number of direct employees and contractors rising by 1,400 to
almost 5,000 since January 2019, and the number of local suppliers
increasing almost threefold12. In line with Barrick’s local
employment policy, 99% of Barrick’s workforce at Veladero are
Argentinian.
Since 2005, Veladero has contributed some $9.5 billion to the
Argentinian economy through taxes, royalties, salaries and payments
to local suppliers. The mine has established a new community fund
which, depending on production, is expected to generate more than
$88 million for local infrastructure development over the next
decade.
“Argentina has the potential to rebuild its economy for its
people and Veladero can make a significant contribution to that
process. Realizing that potential requires the government and the
industry to work together towards long-term goals and to guard
against short-term fiscal measures which could destroy this
opportunity,” Bristow said.
A PEERLESS RECORD OF STRATEGIC DELIVERY
In the 15 months since the Randgold merger, Barrick’s
Strategic Matters Group has driven the historic Nevada Gold Mines
joint venture transaction, and the successful sales of Kalgoorlie
in Western Australia and the Massawa project in Senegal.
It also worked with Barrick’s Africa and Middle East team to
secure the Acacia minorities buyout, create a new joint venture
with the government of Tanzania and settle all outstanding
disputes.
The group is led by senior executive vice-president Kevin
Thomson, who describes it as a small team of highly experienced
people, based in the Toronto corporate office, with a deep industry
knowledge and uniquely specialized, diversified and complementary
skillsets that enable it to go well beyond a typical corporate
development function.
“It operates on a tightly integrated basis with the rest of the
organization, and interacts constantly with Barrick’s technical,
exploration, tax, financial and legal teams across the globe, as
well as leading banks and law firms,” he says.
“The group has an unparalleled record of success in executing
and delivering major strategic initiatives. Among other
things, it has achieved some of the highest transaction multiples
in the industry through the divestment of non-core assets over the
past five years.”
Barrick Completes Massawa Transaction
In line with its strategy of focusing on Tier One assets,
Barrick has completed the transaction of combining its Massawa gold
project in Senegal with Teranga Gold Corporation’s Sabodala gold
mine. Barrick and its Senegalese partner previously held a 90%
interest in the Massawa project.
Mark Bristow said Massawa was one of the largest unexploited
gold deposits in West Africa and its legacy company, Randgold
Resources, had developed this over a period of years to the point
where its value could now be optimally realized for the benefit of
all its stakeholders which includes the Senegal Government.
“Teranga is best placed to achieve this as it already owns the
nearby Sabodala mine and Sabodala’s combination with Massawa is
expected to deliver significant synergies. Barrick will
participate in the upside of the combined asset through the 11%
interest it acquired in Teranga through this transaction,” he
said.
THE LONG GAME WINS
In another first for the gold mining industry, Barrick
has published its ten-year plans in its 2019 annual report which
appeared in March.
They show that the company’s strong asset foundation will
support its targeted production for at least the next ten years
through organic growth. Only capital related to our current
operating assets, sustaining projects in progress as well as
existing exploration and mineral resource management initiatives
will be required, which will be funded by cash flows at a $1,200/oz
average gold price. The plans will be rolled on an annual
basis.
The ten-year mine plans are based on reserves and geologically
understood resource extensions. A $1,200/oz long-term gold price is
currently used to allocate capital.
President and CEO Mark Bristow says Barrick is making its plans
public to provide investor confidence in its sustainability and to
demonstrate that it’s the “go-to” gold company for gearing on the
high gold price.
“Barrick has been able to make this confident statement of
intent thanks to the work we’ve done to strengthen the geology
function and introduce mineral resource management across the
organization. At the same time, we’ve transferred ownership of and
responsibility for the orebodies to the mines. Geological updates
are regularly used to update mine plans and real Life of Mine
optimization is based on high-confidence geological models as well
as operating plans, ounce profiles, and operating and capital cost
forecasts,” he says.
“Our long-term strategy prizes quality above quantity, hence its
focus on Tier One assets. We define a Tier One mine as one that
will produce at least 500,000 ounces per annum, has a life of more
than ten years and total cash costs per ounce8 at the lower half of
the industry range. The fact that we have six of these mines in our
portfolio is the surest guarantor of our ten-year production
forecast.”
PUEBLO VIEJO’S EXPANSION TO BOOST DOMINICAN ECONOMY FOR
DECADES TO COME
The proposed expansion of the Pueblo Viejo gold mine
will extend its life as well as its significant contribution to the
Dominican Republic’s economy until 2040 and beyond, says Mark
Bristow, president and CEO of operator Barrick.
Speaking to local media and businessmen, Bristow said the
project would require an initial investment of $1.3 billion to
expand the process plant and the tailings facility14. Extending its
life would unlock the mine’s potential to increase exports by $22
billion and generate more than $4 billion in taxes at a gold price
of $1,500 per ounce. The mine’s workforce (which is 97% Dominican)
is expected to grow as the project develops and it will increase
opportunities for women (currently 12% of the workforce). It will
also further promote the development of the local economy based on
the mine’s suppliers and contractors.
“Our aim is to continue contributing to the social and economic
development of the Dominican Republic by applying our
sustainability philosophy to create long-term value for all our
stakeholders, especially the governments and people of our host
countries. Without this project, mining at Pueblo Viejo would have
ceased in the next two years,” he said.
The expansion will enable the mine to exploit the lower grades
in the orebody and is not intended to process ore from outside the
current concession area.
In the meantime, Bristow noted, the conversion of the mine’s
Quisqueya 1 power plant to natural gas had successfully been
commissioned. This will cut greenhouse gases by an estimated 30%
and nitrogen oxide by 85%, further reducing Pueblo Viejo’s impact
on the environment. An agribusiness project is also planned as an
additional benefit for the communities impacted by the
expansion.
Pueblo Viejo pays another $185 million in taxes,
bringing its total cash distribution to the Dominican Government to
+$2 billion
In the first four months of 2020, the Pueblo Viejo gold mine
paid $185 million in direct taxes and $9 million in indirect taxes
to the Dominican Government. These payments include advances of
income taxes, net profit interest and royalties on the sales of
gold and silver paid in the first quarter of 2020, as well as the
final settlement of the 2019 fiscal year.
In an early payment in April to help contribute to the stability
of the Dominican economy and aid the country in combating and
containing the spread of the Covid-19 pandemic, Pueblo Viejo paid
$113 million to the Internal Tax Collector, despite the Dominican
Government extending its deadline for certain tax declarations.
This brings Pueblo Viejo’s total tax payments to the Government to
more than $2 billion since 2013.
Pueblo Viejo's exports in the first quarter of this year
represented 37% of the country's total exports of national goods,
with a value of $399 million of a total of $1,081 million15.
Pueblo Viejo has also committed nearly $1 million in supporting
actions to mitigate the impact of Covid-19 in the Dominican
Republic and the communities near its operations.
MODERNIZING AND STREAMLINING OPERATIONS AT
HEMLO
Hemlo has moved to an underground contracting mining
model in order to secure the mine’s future viability and to extend
its Life of Mine.
Barminco, a leader in modern underground mining skills, won the
tender and will be providing contract mining services, with the
objective of improving productivity through industry-leading
technology and more efficient mining methods at the underground
operation.
Barminco’s scope includes undertaking mine development,
production and haulage, and utilizing mining equipment provided by
Barrick. The Barminco plan includes employing more than 300 local
people at the operation.
Having recognized the importance of changing the way the mine
operates and committing to a more modern mining methodology to
ensure Hemlo’s future profitability, Barrick, together with
contractor Barminco, consulted closely with employees, the
Biigtigong Nishnaabeg and Netmizaagamig Nishnaabeg First Nations
groups, as well as representatives of the Marathon, Manitouwadge
and White River communities, before signing the letter of intent
for contract mining services.
Appendix 12020 Operating and Capital
Expenditure Guidance
| GOLD PRODUCTION AND COSTS |
|
|
2020 forecastattributable production(000s ozs) |
2020 forecast costof sales16 ($/oz) |
2020 forecast totalcash costs8 ($/oz) |
2020 forecast all-insustaining costs8 ($/oz) |
|
Carlin (61.5%)17 |
1,000 - 1,050 |
920 - 970 |
760 - 810 |
1,000 - 1,050 |
|
Cortez (61.5%) |
450 - 480 |
980 - 1,030 |
640 - 690 |
910 - 960 |
|
Turquoise Ridge (61.5%) |
430 - 460 |
900 - 950 |
540 - 590 |
690 - 740 |
|
Phoenix (61.5%) |
100 - 120 |
1,850 - 1,900 |
700 - 750 |
920 - 970 |
|
Long Canyon (61.5%) |
130 - 150 |
910 - 960 |
240 - 290 |
450 - 500 |
|
Nevada Gold Mines (61.5%) |
2,100 - 2,250 |
970 - 1,020 |
660 - 710 |
880 - 930 |
|
Hemlo |
200 - 220 |
960 - 1,010 |
800 - 850 |
1,200 - 1,250 |
|
North America |
2,300 - 2,450 |
970 - 1,020 |
660 - 710 |
900 - 950 |
|
|
|
|
|
|
|
Pueblo Viejo (60%) |
530 - 580 |
840 - 890 |
520 - 570 |
720 - 770 |
|
Veladero (50%) |
240 - 270 |
1,220 - 1,270 |
670 - 720 |
1,250 - 1,300 |
|
Porgera (47.5%)18 |
|
|
|
|
|
Latin America & Asia Pacific |
800 - 900 |
930 - 980 |
610 - 660 |
890 - 940 |
|
|
|
|
|
|
|
Loulo-Gounkoto (80%) |
500 - 540 |
1,050 - 1,100 |
620 - 670 |
970 - 1,020 |
|
Kibali (45%) |
340 - 370 |
1,030 - 1,080 |
600 - 650 |
790 - 840 |
|
North Mara (84%)19 |
240 - 270 |
750 - 800 |
570 - 620 |
830 - 880 |
|
Tongon (89.7%) |
240 - 260 |
1,390 - 1,440 |
680 - 730 |
740 - 790 |
|
Bulyanhulu (84%)19 |
30 - 50 |
1,210 - 1,260 |
790 - 840 |
1,110 - 1,160 |
|
Buzwagi (84%)19 |
80 - 100 |
850 - 900 |
820 - 870 |
850 - 900 |
|
Africa & Middle East |
1,450 - 1,600 |
1,040 - 1,090 |
640 - 690 |
870 - 920 |
| |
|
|
|
|
|
Total Attributable to Barrick20,21,22 |
4,600 - 5,000 |
980 - 1,030 |
650 - 700 |
920 - 970 |
|
|
|
|
|
|
| COPPER PRODUCTION AND COSTS |
|
|
2020 forecastattributable production(M lbs) |
2020 forecast costof sales16 ($/lb) |
2020 forecast C1cash costs11 ($/lb) |
2020 forecast all-insustaining costs11 ($/lb) |
|
Lumwana |
250 - 280 |
2.20 - 2.40 |
1.50 - 1.70 |
2.30 - 2.60 |
|
Zaldívar (50%) |
120 - 135 |
2.40 - 2.70 |
1.65 - 1.85 |
2.30 - 2.60 |
|
Jabal Sayid (50%) |
60 - 70 |
1.75 - 2.00 |
1.40 - 1.60 |
1.50 - 1.70 |
|
Total Copper |
440 - 500 |
2.10 - 2.40 |
1.50 - 1.80 |
2.20 - 2.50 |
|
|
|
|
|
|
|
ATTRIBUTABLE CAPITAL EXPENDITURES |
|
|
|
|
|
($ millions) |
|
|
|
|
Attributable minesite sustaining |
1,300 - 1,500 |
|
|
|
|
Attributable project |
300 - 400 |
|
|
|
| Total
attributable capital expenditures23 |
1,600 - 1,900 |
|
|
|
2020 Outlook Assumptions and Economic Sensitivity
Analysis
|
|
2020 GuidanceAssumption |
Hypothetical Change |
Impact on EBITDA(millions)24 |
Impact on AISC8,11 |
| Gold revenue, net of royalties13 |
$1,350/oz |
+/-
$100/oz |
+/-
$339 |
+/-
$3/oz |
| Copper revenue, net of
royalties |
$2.75/lb |
+/- $0.50/lb |
+/- $169 |
+/- $0.02/lb |
Appendix 2Production and Cost Summary -
Gold
|
|
For the three months ended |
| |
3/31/20 |
12/31/19 |
% Change |
3/31/19 |
% Change |
| Nevada
Gold Mines LLC (61.5%)a |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
526 |
585 |
(10 |
)% |
572 |
(8 |
)% |
|
Gold produced (000s oz 100% basis) |
855 |
951 |
(10 |
)% |
598 |
43 |
% |
|
Cost of sales ($/oz) |
995 |
1,038 |
(4 |
)% |
780 |
28 |
% |
|
Total cash costs ($/oz)b |
690 |
711 |
(3 |
)% |
542 |
27 |
% |
|
All-in sustaining costs ($/oz)b |
952 |
944 |
1 |
% |
678 |
40 |
% |
|
Carlin (61.5%)c |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
253 |
276 |
(8 |
)% |
233 |
9 |
% |
|
Gold produced (000s oz 100% basis) |
411 |
449 |
(8 |
)% |
233 |
76 |
% |
|
Cost of sales ($/oz) |
970 |
975 |
(1 |
)% |
947 |
2 |
% |
|
Total cash costs ($/oz)b |
776 |
766 |
1 |
% |
671 |
16 |
% |
|
All-in sustaining costs ($/oz)b |
1,007 |
965 |
4 |
% |
891 |
13 |
% |
|
Cortez (61.5%)d |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
128 |
133 |
(4 |
)% |
262 |
(51 |
)% |
|
Gold produced (000s oz 100% basis) |
208 |
216 |
(4 |
)% |
262 |
(21 |
)% |
|
Cost of sales ($/oz) |
876 |
945 |
(7 |
)% |
682 |
28 |
% |
|
Total cash costs ($/oz)b |
614 |
681 |
(10 |
)% |
433 |
42 |
% |
|
All-in sustaining costs ($/oz)b |
1,009 |
1,012 |
0 |
% |
506 |
99 |
% |
|
Turquoise Ridge (61.5%)e |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
84 |
111 |
(24 |
)% |
77 |
9 |
% |
|
Gold produced (000s oz 100% basis) |
137 |
181 |
(24 |
)% |
103 |
33 |
% |
|
Cost of sales ($/oz) |
1,032 |
971 |
6 |
% |
592 |
74 |
% |
|
Total cash costs ($/oz)b |
668 |
625 |
7 |
% |
506 |
32 |
% |
|
All-in sustaining costs ($/oz)b |
806 |
800 |
1 |
% |
592 |
36 |
% |
|
Phoenix (61.5%)f |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
35 |
31 |
13 |
% |
|
|
|
|
Gold produced (000s oz 100% basis) |
57 |
50 |
13 |
% |
|
|
|
|
Cost of sales ($/oz) |
1,583 |
2,025 |
(22 |
)% |
|
|
|
|
Total cash costs ($/oz)b |
737 |
902 |
(18 |
)% |
|
|
|
|
All-in sustaining costs ($/oz)b |
914 |
1,034 |
(12 |
)% |
|
|
|
|
Long Canyon (61.5%)f |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
26 |
34 |
(24 |
)% |
|
|
|
|
Gold produced (000s oz 100% basis) |
42 |
55 |
(24 |
)% |
|
|
|
|
Cost of sales ($/oz) |
1,025 |
1,026 |
0 |
% |
|
|
|
|
Total cash costs ($/oz)b |
345 |
317 |
9 |
% |
|
|
|
|
All-in sustaining costs ($/oz)b |
561 |
657 |
(15 |
)% |
|
|
|
| Pueblo Viejo (60%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
143 |
179 |
(20 |
)% |
148 |
(3 |
)% |
|
Gold produced (000s oz 100% basis) |
238 |
298 |
(20 |
)% |
247 |
(3 |
)% |
|
Cost of sales ($/oz) |
767 |
660 |
16 |
% |
696 |
10 |
% |
|
Total cash costs ($/oz)b |
502 |
422 |
19 |
% |
421 |
19 |
% |
|
All-in sustaining costs ($/oz)b |
626 |
517 |
21 |
% |
543 |
15 |
% |
| Loulo-Gounkoto (80%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
141 |
144 |
(2 |
)% |
128 |
10 |
% |
|
Gold produced (000s oz 100% basis) |
177 |
180 |
(2 |
)% |
160 |
10 |
% |
|
Cost of sales ($/oz) |
1,002 |
1,037 |
(3 |
)% |
1,052 |
(5 |
)% |
|
Total cash costs ($/oz)b |
614 |
631 |
(3 |
)% |
684 |
(10 |
)% |
|
All-in sustaining costs ($/oz)b |
891 |
917 |
(3 |
)% |
840 |
6 |
% |
| Kibali (45%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
91 |
87 |
5 |
% |
93 |
(2 |
)% |
|
Gold produced (000s oz 100% basis) |
201 |
193 |
5 |
% |
207 |
(2 |
)% |
|
Cost of sales ($/oz) |
1,045 |
1,205 |
(13 |
)% |
1,202 |
(13 |
)% |
|
Total cash costs ($/oz)b |
582 |
608 |
(4 |
)% |
573 |
2 |
% |
|
All-in sustaining costs ($/oz)b |
773 |
740 |
4 |
% |
673 |
15 |
% |
| Veladero (50%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
75 |
71 |
6 |
% |
70 |
7 |
% |
|
Gold produced (000s oz 100% basis) |
150 |
142 |
6 |
% |
140 |
7 |
% |
|
Cost of sales ($/oz) |
1,182 |
1,138 |
4 |
% |
1,195 |
(1 |
)% |
|
Total cash costs ($/oz)b |
788 |
710 |
11 |
% |
713 |
11 |
% |
|
All-in sustaining costs ($/oz)b |
1,266 |
1,142 |
11 |
% |
1,100 |
15 |
% |
| Porgera (47.5%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
62 |
82 |
(24 |
)% |
66 |
(6 |
)% |
|
Gold produced (000s oz 100% basis) |
131 |
172 |
(24 |
)% |
139 |
(6 |
)% |
|
Cost of sales ($/oz) |
1,097 |
909 |
21 |
% |
1,031 |
6 |
% |
|
Total cash costs ($/oz)b |
941 |
757 |
24 |
% |
854 |
10 |
% |
|
All-in sustaining costs ($/oz)b |
1,089 |
894 |
22 |
% |
978 |
11 |
% |
| Tongon (89.7%) |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
61 |
61 |
0 |
% |
61 |
0 |
% |
|
Gold produced (000s oz 100% basis) |
68 |
68 |
0 |
% |
68 |
0 |
% |
|
Cost of sales ($/oz) |
1,368 |
1,476 |
(7 |
)% |
1,451 |
(6 |
)% |
|
Total cash costs ($/oz)b |
762 |
803 |
(5 |
)% |
799 |
(5 |
)% |
|
All-in sustaining costs ($/oz)b |
788 |
867 |
(9 |
)% |
836 |
(6 |
)% |
| Hemlo |
|
|
|
|
|
|
|
|
Gold produced (000s oz) |
57 |
54 |
6 |
% |
55 |
4 |
% |
|
Cost of sales ($/oz) |
1,119 |
1,632 |
(31 |
)% |
906 |
24 |
% |
|
Total cash costs ($/oz)b |
945 |
1,091 |
(13 |
)% |
769 |
23 |
% |
|
All-in sustaining costs ($/oz)b |
1,281 |
1,380 |
(7 |
)% |
915 |
40 |
% |
| North Marag |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
65 |
103 |
(37 |
)% |
42 |
55 |
% |
|
Gold produced (000s oz 100% basis) |
77 |
103 |
(25 |
)% |
66 |
17 |
% |
|
Cost of sales ($/oz) |
959 |
1,021 |
(6 |
)% |
1,064 |
(10 |
)% |
|
Total cash costs ($/oz)b |
646 |
675 |
(4 |
)% |
755 |
(14 |
)% |
|
All-in sustaining costs ($/oz)b |
816 |
830 |
(2 |
)% |
944 |
(14 |
)% |
| Buzwagig |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
22 |
28 |
(21 |
)% |
18 |
22 |
% |
|
Gold produced (000s oz 100% basis) |
27 |
28 |
(4 |
)% |
28 |
(4 |
)% |
|
Cost of sales ($/oz) |
1,373 |
1,235 |
11 |
% |
1,243 |
10 |
% |
|
Total cash costs ($/oz)b |
1,275 |
1,144 |
11 |
% |
1,164 |
10 |
% |
|
All-in sustaining costs ($/oz)b |
1,288 |
1,169 |
10 |
% |
1,228 |
5 |
% |
| Bulyanhulug |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
7 |
9 |
(22 |
)% |
6 |
17 |
% |
|
Gold produced (000s oz 100% basis) |
9 |
9 |
0 |
% |
9 |
0 |
% |
|
Cost of sales ($/oz) |
1,685 |
1,293 |
30 |
% |
1,008 |
67 |
% |
|
Total cash costs ($/oz)b |
686 |
752 |
(9 |
)% |
622 |
10 |
% |
|
All-in sustaining costs ($/oz)b |
906 |
909 |
0 |
% |
757 |
20 |
% |
| Kalgoorlie (50%)h |
|
|
|
|
|
|
|
|
Gold produced (000s oz attributable basis) |
|
36 |
(100 |
)% |
55 |
(100 |
)% |
|
Gold produced (000s oz 100% basis) |
|
72 |
(100 |
)% |
110 |
(100 |
)% |
|
Cost of sales ($/oz) |
|
1,127 |
(100 |
)% |
1,064 |
(100 |
)% |
|
Total cash costs ($/oz)b |
|
940 |
(100 |
)% |
870 |
(100 |
)% |
|
All-in sustaining costs ($/oz)b |
|
1,172 |
(100 |
)% |
1,185 |
(100 |
)% |
| Total Attributable to Barricki |
|
|
|
|
|
|
|
|
Gold produced (000s oz) |
1,250 |
1,439 |
(13 |
)% |
1,367 |
(9 |
)% |
|
Cost of sales ($/oz)j |
1,020 |
1,046 |
(2 |
)% |
947 |
8 |
% |
|
Total cash costs ($/oz)b |
692 |
692 |
0 |
% |
631 |
10 |
% |
|
All-in sustaining costs ($/oz)b |
954 |
923 |
3 |
% |
825 |
16 |
% |
| |
|
|
|
|
|
|
|
- Represents the combined results of Cortez, Goldstrike
(including our 60% share of South Arturo) and our 75% interest in
Turquoise Ridge until June 30, 2019. Commencing July 1, 2019,
the date Nevada Gold Mines was established, the results represent
our 61.5% interest in Cortez, Carlin (including Goldstrike and 60%
of South Arturo), Turquoise Ridge (including Twin Creeks), Phoenix
and Long Canyon.
- These are non-GAAP financial performance measures with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. For further
information and a detailed reconciliation of each non-GAAP measure
used to the most directly comparable IFRS measure, please see pages
79 to 95 of our first quarter MD&A.
- On July 1, 2019, Barrick's Goldstrike and Newmont's Carlin were
contributed to Nevada Gold Mines and are now referred to as
Carlin. As a result, the amounts presented represent
Goldstrike on a 100% basis (including our 60% share of South
Arturo) up until June 30, 2019, and the combined results of Carlin
and Goldstrike (including NGM's 60% share of South Arturo) on a
61.5% basis thereafter.
- On July 1, 2019, Cortez was contributed to Nevada Gold Mines, a
joint venture with Newmont. As a result, the amounts
presented are on an 100% basis up until June 30, 2019, and on a
61.5% basis thereafter.
- Barrick owned 75% of Turquoise Ridge through the end of the
second quarter of 2019, with our joint venture partner, Newmont,
owning the remaining 25%. Turquoise Ridge was proportionately
consolidated on the basis that the joint venture partners that have
joint control have rights to the assets and obligations for the
liabilities relating to the arrangement. The figures presented in
this table are based on our 75% interest in Turquoise Ridge until
June 30, 2019. On July 1, 2019, Barrick's 75% interest in Turquoise
Ridge and Newmont's Twin Creeks and 25% interest in Turquoise Ridge
were contributed to Nevada Gold Mines. Starting July 1, 2019,
the results represent our 61.5% share of Turquoise Ridge and Twin
Creeks, now referred to as Turquoise Ridge.
- A 61.5% interest in these sites was acquired as a result of the
formation of Nevada Gold Mines on July 1, 2019.
- Formerly known as Acacia Mining plc. On September 17,
2019, Barrick acquired all of the shares of Acacia it did not
own. Operating results are included at 100% from October 1,
2019 to December 31, 2019 (notwithstanding the completion of the
Acacia transaction on September 17, 2019, we consolidated our
interest in Acacia and recorded a non-controlling interest of 36.1%
in the income statement for the entirety of the third quarter of
2019 as a matter of convenience), and on an 84% basis thereafter as
the GoT's 16% free-carried interest was made effective from January
1, 2020.
- On November 28, 2019, we completed the sale of our 50% interest
in Kalgoorlie in Western Australia to Saracen Mineral Holdings
Limited for total cash consideration of $750 million. Accordingly,
these represent our 50% interest until November 28, 2019.
- Excludes Pierina; Lagunas Norte starting in the fourth quarter
of 2019; and Golden Sunlight and Morila (40%) starting in the third
quarter of 2019 which are mining incidental ounces as it enters
closure.
- Cost of sales per ounce (Barrick’s share) is calculated as cost
of sales - gold on an attributable basis (excluding sites in care
and maintenance) divided by gold equity ounces sold.
Production and Cost Summary - Copper
| |
For the three months
ended |
| |
3/31/20 |
12/31/19 |
% Change |
3/31/19 |
% Change |
|
Lumwana |
|
|
|
|
|
|
|
|
Copper production (millions lbs) |
64 |
63 |
2 |
% |
61 |
5 |
% |
|
Cost of sales ($/lb) |
1.94 |
2.22 |
(13 |
)% |
2.16 |
(10 |
)% |
|
C1 cash costs ($/lb)a |
1.63 |
2.10 |
(22 |
)% |
1.67 |
(2 |
)% |
|
All-in sustaining costs ($/lb)a |
2.26 |
3.41 |
(34 |
)% |
2.79 |
(19 |
)% |
| Zaldívar
(50%) |
|
|
|
|
|
|
|
|
Copper production (millions lbs attributable basis) |
31 |
36 |
(14 |
)% |
28 |
11 |
% |
|
Copper production (millions lbs 100% basis) |
62 |
72 |
(14 |
)% |
56 |
11 |
% |
|
Cost of sales ($/lb) |
2.39 |
2.59 |
(8 |
)% |
2.68 |
(11 |
)% |
|
C1 cash costs ($/lb)a |
1.71 |
1.95 |
(12 |
)% |
1.91 |
(10 |
)% |
|
All-in sustaining costs ($/lb)a |
1.99 |
2.56 |
(22 |
)% |
2.12 |
(6 |
)% |
| Jabal Sayid (50%) |
|
|
|
|
|
|
|
|
Copper production (millions lbs attributable basis) |
20 |
18 |
11 |
% |
17 |
18 |
% |
|
Copper production (millions lbs 100% basis) |
40 |
36 |
11 |
% |
34 |
18 |
% |
|
Cost of sales ($/lb) |
1.28 |
1.47 |
(13 |
)% |
1.55 |
(17 |
)% |
|
C1 cash costs ($/lb)a |
0.97 |
1.29 |
(25 |
)% |
1.10 |
(12 |
)% |
|
All-in sustaining costs ($/lb)a |
1.11 |
1.78 |
(38 |
)% |
1.30 |
(15 |
)% |
| Total Copper |
|
|
|
|
|
|
|
|
Copper production (millions lbs attributable basis) |
115 |
117 |
(2 |
)% |
106 |
8 |
% |
|
Cost of sales ($/lb)b |
1.96 |
2.26 |
(13 |
)% |
2.21 |
(11 |
)% |
|
C1 cash costs ($/lb)a |
1.55 |
1.90 |
(18 |
)% |
1.66 |
(7 |
)% |
|
All-in sustaining costs ($/lb)a |
2.04 |
2.82 |
(28 |
)% |
2.46 |
(17 |
)% |
| |
|
|
|
|
|
|
|
- These are non-GAAP financial performance measures with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. For further
information and a detailed reconciliation of each non-GAAP measure
used to the most directly comparable IFRS measure, please see pages
79 to 95 of our first quarter MD&A.
- Cost of sales per pound (Barrick’s share) is calculated as cost
of sales - copper plus our equity share of cost of sales
attributable to Zaldívar and Jabal Sayid divided by copper pounds
sold.
Technical Information
The scientific and technical information
contained in this press release has been reviewed and approved by
Steven Yopps, MMSA, Director - Metallurgy, North America; Craig
Fiddes, Manager of Growth Projects, Nevada Gold Mines; Chad Yuhasz,
P.Geo, Mineral Resource Manager, Latin America and Australia
Pacific; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral
Resources Manager: Africa and Middle East; Rodney Quick, MSc, Pr.
Sci.Nat, Mineral Resource Management and Evaluation Executive; John
Steele, CIM, Metallurgy, Engineering and Capital Projects
Executive; and Rob Krcmarov, FAusIMM, Executive Vice President,
Exploration and Growth — each a “Qualified Person” as defined in
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects.
All mineral reserve and mineral resource
estimates are estimated in accordance with National Instrument
43-101 - Standards of Disclosure for Mineral Projects. Unless
otherwise noted, such mineral reserve and mineral resource
estimates are as of December 31, 2019.
Endnotes
Endnote 1
“Free cash flow” is a non-GAAP financial performance measure
which deducts capital expenditures from net cash provided by
operating activities. Barrick believes this to be a useful
indicator of our ability to operate without reliance on additional
borrowing or usage of existing cash. Free cash flow is intended to
provide additional information only and does not have any
standardized meaning under IFRS and may not be comparable to
similar measures of performance presented by other companies. Free
cash flow should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS.
Further details on this non-GAAP measure are provided in the
MD&A accompanying Barrick’s financial statements filed from
time to time on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
Reconciliation of Net Cash Provided by Operating
Activities to Free Cash Flow
| ($
millions) |
For the three months ended |
|
|
3/31/20 |
|
12/31/19 |
|
3/31/19 |
|
| Net cash provided by operating
activities |
889 |
|
875 |
|
520 |
|
|
Capital expenditures |
(451 |
) |
(446 |
) |
(374 |
) |
|
Free cash flow |
438 |
|
429 |
|
146 |
|
Endnote 2
“Adjusted net earnings” and “adjusted net earnings per share”
are non-GAAP financial performance measures. Adjusted net earnings
excludes the following from net earnings: certain impairment
charges (reversals) related to intangibles, goodwill, property,
plant and equipment, and investments; gains (losses) and other
one-time costs relating to acquisitions or dispositions; foreign
currency translation gains (losses); significant tax adjustments
not related to current period earnings; unrealized gains (losses)
on non-hedge derivative instruments; and the tax effect and
non-controlling interest of these items. The Company uses this
measure internally to evaluate our underlying operating performance
for the reporting periods presented and to assist with the planning
and forecasting of future operating results. Barrick believes that
adjusted net earnings is a useful measure of our performance
because these adjusting items do not reflect the underlying
operating performance of our core mining business and are not
necessarily indicative of future operating results. Adjusted net
earnings and adjusted net earnings per share are intended to
provide additional information only and do not have any
standardized meaning under IFRS and may not be comparable to
similar measures of performance presented by other companies. They
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Further
details on these non-GAAP measures are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to Net Earnings
per Share, Adjusted Net Earnings and Adjusted Net Earnings per
Share
| ($
millions, except per share amounts in dollars) |
For the three months ended |
|
|
3/31/20 |
|
12/31/19 |
|
3/31/19 |
|
| Net earnings (loss) attributable
to equity holders of the Company |
400 |
|
1,387 |
|
111 |
|
| Impairment charges (reversals)
related to intangibles, goodwill, property, plant and equipment,
and investmentsa |
(336 |
) |
(566 |
) |
3 |
|
| Acquisition/disposition
(gains) lossesb |
(60 |
) |
(414 |
) |
0 |
|
| (Gain) loss on currency
translation |
16 |
|
53 |
|
22 |
|
| Significant tax adjustmentsc |
(44 |
) |
74 |
|
8 |
|
| Other expense adjustmentsd |
98 |
|
(845 |
) |
46 |
|
| Tax
effect and non-controlling intereste |
211 |
|
611 |
|
(6 |
) |
|
Adjusted net earnings |
285 |
|
300 |
|
184 |
|
| Net earnings per sharef |
0.22 |
|
0.78 |
|
0.06 |
|
|
Adjusted net earnings per sharef |
0.16 |
|
0.17 |
|
0.11 |
|
a. Net impairment reversals for the three month period
ended March 31, 2020 primarily relate to non-current asset
reversals at Bulyanhulu, offset by losses at Buzwagi and North
Mara. For the three month period ended December 31, 2019, net
impairment reversals primarily relate to non-current asset
impairments at Pueblo Viejo, partially offset by impairment charges
at Pascua-Lama.b. Acquisition/disposition gains for the three
month period ended March 31, 2020 primarily relate to the gain on
the sale of Massawa. For the three month period ended
December 31, 2019, acquisition/disposition gains mainly relate to
the gain on the sale of our 50% interest in
Kalgoorlie.c. Significant tax adjustments for the three month
period ended March 31, 2020 primarily relate to deferred tax
recoveries as a result of tax reform measures in Argentina and
adjustments made in recognition of the net settlement of all
outstanding disputes with the Government of Tanzania. Refer
to Note 10 to the Financial Statements for more
information.d. Other expense adjustments for the three month
period ended March 31, 2020 primarily relate to the impact of
changes in the discount rate assumptions on our closed mine
rehabilitation provision and losses on debt extinguishment.
For the three month period ended December 31, 2019, other
expense adjustments primarily relate to the gain on the
de-recognition of the deferred revenue liability relating to our
silver sale agreement with Wheaton Precious Metals Corp. and the
gain on a settlement of customs duty and indirect taxes at
Lumwana.e. Tax effect and non-controlling interest for the
three month periods ended March 31, 2020 and December 31, 2019
primarily relates to the net impairment reversals related to
long-lived assets.f. Calculated using weighted average number
of shares outstanding under the basic method of earnings per
share.
Endnote 3
"Realized price" is a non-GAAP financial measure
which excludes from sales: unrealized gains and losses on non-hedge
derivative contracts; unrealized mark-to-market gains and losses on
provisional pricing from copper and gold sales contracts; sales
attributable to ore purchase arrangements; treatment and refining
charges; export duties; and cumulative catch-up adjustments to
revenue relating to our streaming arrangements. This measure is
intended to enable Management to better understand the price
realized in each reporting period for gold and copper sales because
unrealized mark-to-market values of non-hedge gold and copper
derivatives are subject to change each period due to changes in
market factors such as market and forward gold and copper prices,
so that prices ultimately realized may differ from those recorded.
The exclusion of such unrealized mark-to-market gains and losses
from the presentation of this performance measure enables investors
to understand performance based on the realized proceeds of selling
gold and copper production. The realized price measure is intended
to provide additional information and does not have any
standardized definition under IFRS and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Further details on these non-GAAP measures
are provided in the MD&A accompanying Barrick’s financial
statements filed from time to time on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov.
Reconciliation of Sales to
Realized Price per ounce/pound
| ($
millions, except per ounce/pound information in dollars) |
Gold |
Copper |
|
|
For the three months ended |
|
|
3/31/20 |
|
12/31/19 |
|
3/31/19 |
|
3/31/20 |
|
12/31/19 |
|
3/31/19 |
|
| Sales |
2,593 |
|
2,758 |
|
1,906 |
|
99 |
|
82 |
|
163 |
|
| Sales applicable to
non-controlling interests |
(770 |
) |
(769 |
) |
(224 |
) |
0 |
|
0 |
|
0 |
|
| Sales applicable to equity
method investmentsa,b |
147 |
|
139 |
|
129 |
|
107 |
|
147 |
|
121 |
|
| Realized non-hedge gold/copper
derivative (losses) gains |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
| Sales applicable to sites in
care and maintenancec |
(46 |
) |
(56 |
) |
(26 |
) |
0 |
|
0 |
|
0 |
|
| Treatment and refinement
charges |
0 |
|
0 |
|
0 |
|
39 |
|
25 |
|
31 |
|
|
Otherd |
15 |
|
22 |
|
0 |
|
0 |
|
0 |
|
0 |
|
|
Revenues – as adjusted |
1,939 |
|
2,094 |
|
1,785 |
|
245 |
|
254 |
|
315 |
|
|
Ounces/pounds sold (000s ounces/millions pounds)c |
1,220 |
|
1,413 |
|
1,365 |
|
110 |
|
91 |
|
103 |
|
|
Realized gold/copper price per ounce/pounde |
1,589 |
|
1,483 |
|
1,307 |
|
2.23 |
|
2.76 |
|
3.07 |
|
a. Represents sales of $140 million
for the three month periods ended March 31, 2020
(December 31, 2019: $130 million and March 31, 2019: $117
million) applicable to our 45% equity method investment in Kibali
and $nil (December 31, 2019: $9 million and March 31,
2019: $12 million) applicable to our 40% equity method investment
in Morila for gold. Represents sales of $72 million for the three
months ended March 31, 2020 (December 31, 2019: $110
million and March 31, 2019: $81 million) applicable to our 50%
equity method investment in Zaldívar and $40 million
(December 31, 2019: $43 million and March 31, 2019: $44
million) applicable to our 50% equity method investment in Jabal
Sayid for copper.b. Sales applicable to equity method
investments are net of treatment and refinement charges.c.Figures
exclude Pierina; Golden Sunlight and Morila starting in the third
quarter of 2019; and Lagunas Norte starting in the fourth quarter
of 2019, from the calculation of realized price per ounce as the
mine is mining incidental ounces as it enters
closure.d. Represents cumulative catch-up adjustment to
revenue relating to our streaming arrangements. Refer to note
2f of the 2019 Annual Financial Statements for more
information.e. Realized price per ounce/pound may not
calculate based on amounts presented in this table due to
rounding.
Endnote 4
Includes North Mara, Bulyanhulu and Buzwagi on a
84% basis starting January 1, 2020 (and on a 63.9% basis from
January 1, 2019 to September 30, 2019; notwithstanding the
completion of the Acacia transaction on September 17, 2019, we
consolidated our interest in Acacia and recorded a non-controlling
interest of 36.1% in the income statement for the entirety of the
third quarter of 2019 as a matter of convenience, and on a 100%
basis from October 1, 2019 to December 31, 2019), Pueblo Viejo on a
60% basis, South Arturo on a 36.9% basis from July 1, 2019 onwards
as a result of its contribution to Nevada Gold Mines (and on a 60%
basis from January 1, 2019 to June 30, 2019), Veladero on a 50%
basis, Loulo-Gounkoto on an 80% basis, Kibali on a 45% basis,
Tongon on an 89.7% basis, and Morila on a 40% basis until the
second quarter of 2019, which reflects our equity share of
production and sales. Also removes the non-controlling
interest of 38.5% Nevada Gold Mines from July 1, 2019 onwards.
Endnote 5
Net earnings (loss) represents net earnings
(loss) attributable to the equity holders of the Company.
Endnote 6
These amounts are presented on the same basis as
our guidance and include our 60% share of Pueblo Viejo, 80% share
of Loulo-Gounkoto, 89.7% share of Tongon, 45% share of Kibali, 40%
share of Morila and 60% share of South Arturo (36.9% of South
Arturo from July 1, 2019 onwards as a result of its contribution to
Nevada Gold Mines), our 84% share of Tanzania starting January 1,
2020 (63.9% share from January 1, 2019 to September 30, 2019;
notwithstanding the completion of the Acacia transaction on
September 17, 2019, we consolidated our interest in Acacia and
recorded a non-controlling interest of 36.1% in the income
statement for the entirety of the third quarter of 2019 as a matter
of convenience, and 100% share from October 1, 2019 to December 31,
2019) and our 50% share of Zaldívar and Jabal Sayid. Starting
July 1, 2019, it also includes our 61.5% share of Nevada Gold
Mines.
Endnote 7
Gold cost of sales (Barrick’s share) is
calculated as cost of sales - gold on an attributable basis
(excluding sites in care and maintenance) divided by ounces
sold.
Endnote 8
“Total cash costs” per ounce, “All-in sustaining
costs” per ounce and "All-in costs" per ounce are non-GAAP
financial performance measures. “Total cash costs” per ounce starts
with cost of sales related to gold production but removes
depreciation, the noncontrolling interest of cost of sales, and
includes by product credits. “All-in sustaining costs” per ounce
begin with “Total cash costs” per ounce and add further costs which
reflect the expenditures made to maintain current production
levels, primarily sustaining capital expenditures, sustaining
leases, general & administrative costs, minesite exploration
and evaluation costs, and reclamation cost accretion and
amortization. "All-in costs" per ounce starts with "All-in
sustaining costs" per ounce and adds additional costs that reflect
the varying costs of producing gold over the life-cycle of a mine,
including: project capital expenditures and other nonsustaining
costs. Barrick believes that the use of “total cash costs” per
ounce, “all-in sustaining costs” per ounce and "All-in costs" per
ounce will assist investors, analysts and other stakeholders in
understanding the costs associated with producing gold,
understanding the economics of gold mining, assessing our operating
performance and also our ability to generate free cash flow from
current operations and to generate free cash flow on an overall
Company basis. “Total cash costs” per ounce, “All-in sustaining
costs” per ounce and "All-in costs" per ounce are intended to
provide additional information only and do not have any
standardized meaning under IFRS. Although a standardized definition
of all-in sustaining costs was published in 2013 by the World Gold
Council (a market development organization for the gold industry
comprised of and funded by 25 gold mining companies from around the
world, including Barrick), it is not a regulatory organization, and
other companies may calculate this measure differently. Starting
from the first quarter of 2019, we have renamed "cash costs" to
"total cash costs" when referring to our gold operations. The
calculation of total cash costs is identical to our previous
calculation of cash costs with only a change in the naming
convention of this non-GAAP measure. These measures should not be
considered in isolation or as a substitute for measures prepared in
accordance with IFRS. Further details on these non-GAAP measures
are provided in the MD&A accompanying Barrick’s financial
statements filed from time to time on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov.
Reconciliation of Gold Cost of
Sales to Total cash costs, All-in sustaining costs and All-in
costs, including on a per ounce basis
| ($
millions, except per ounce information in dollars) |
|
For the three months ended |
|
|
Footnote |
3/31/20 |
|
12/31/19 |
|
3/31/19 |
|
| Cost of sales applicable to gold
production |
|
1,643 |
|
1,896 |
|
1,350 |
|
|
Depreciation |
|
(474 |
) |
(549 |
) |
(384 |
) |
|
Cash cost of sales applicable to equity method investments |
|
52 |
|
57 |
|
62 |
|
|
By-product credits |
|
(29 |
) |
(43 |
) |
(24 |
) |
|
Realized (gains) losses on hedge and non-hedge derivatives |
a |
0 |
|
1 |
|
0 |
|
|
Non-recurring items |
b |
0 |
|
(22 |
) |
(20 |
) |
|
Other |
c |
(27 |
) |
(37 |
) |
(20 |
) |
|
Non-controlling interests |
d |
(316 |
) |
(326 |
) |
(101 |
) |
|
Total cash costs |
|
849 |
|
977 |
|
863 |
|
|
General & administrative costs |
|
40 |
|
31 |
|
54 |
|
|
Minesite exploration and evaluation costs |
e |
15 |
|
24 |
|
11 |
|
|
Minesite sustaining capital expenditures |
f |
370 |
|
394 |
|
253 |
|
|
Sustaining leases |
|
0 |
|
4 |
|
10 |
|
|
Rehabilitation - accretion and amortization (operating sites) |
g |
14 |
|
7 |
|
14 |
|
|
Non-controlling interest, copper operations and other |
h |
(125 |
) |
(135 |
) |
(75 |
) |
| All-in
sustaining costs |
|
1,163 |
|
1,302 |
|
1,130 |
|
|
Project exploration and evaluation and project costs |
e |
56 |
|
60 |
|
63 |
|
|
Community relations costs not related to current operations |
|
1 |
|
0 |
|
1 |
|
|
Project capital expenditures |
f |
76 |
|
46 |
|
120 |
|
|
Rehabilitation - accretion and amortization (non-operating
sites) |
g |
2 |
|
3 |
|
7 |
|
|
Non-controlling interest and copper operations and other |
h |
(33 |
) |
(28 |
) |
(3 |
) |
| All-in
costs |
|
1,265 |
|
1,383 |
|
1,318 |
|
|
Ounces sold - equity basis (000s ounces) |
i |
1,220 |
|
1,413 |
|
1,365 |
|
|
Cost of sales per ounce |
j,k |
1,020 |
|
1,046 |
|
947 |
|
| Total cash costs per ounce |
k |
692 |
|
692 |
|
631 |
|
| Total
cash costs per ounce (on a co-product basis) |
k,l |
705 |
|
712 |
|
644 |
|
| All-in sustaining costs per
ounce |
k |
954 |
|
923 |
|
825 |
|
| All-in
sustaining costs per ounce (on a co-product basis) |
k,l |
967 |
|
943 |
|
838 |
|
| All-in costs per ounce |
k |
1,035 |
|
976 |
|
964 |
|
| All-in
costs per ounce (on a co-product basis) |
k,l |
1,048 |
|
996 |
|
977 |
|
a. Realized (gains) losses
on hedge and non-hedge derivatives
Includes realized hedge losses of $nil for the
three month periods ended March 31, 2020 (December 31,
2019: $nil and March 31, 2019: $nil), and realized non-hedge
losses of $nil for the three month periods ended March 31,
2020 (December 31, 2019: $1 million and March 31, 2019:
$nil). Refer to note 5 to the Financial Statements for further
information.
b. Non-recurring
items
Non-recurring items in 2019 relate to
organizational restructuring. These costs are not indicative
of our cost of production and have been excluded from the
calculation of total cash costs.
c. Other
Other adjustments for the three month period
ended March 31, 2020 include the removal of total cash costs
and by-product credits associated with our Pierina mine; Golden
Sunlight and Morila starting in the third quarter of 2019; and
Lagunas Norte starting in the fourth quarter of 2019, which all are
mining incidental ounces as they enter closure of $25 million
(December 31, 2019: $35 million; March 31, 2019: $18
million relating to Pierina only).
d. Non-controlling
interests
Non-controlling interests include
non-controlling interests related to gold production of $466
million for the three month periods ended March 31, 2020
(December 31, 2019: $477 million and March 31, 2019: $152
million). Non-controlling interests include Pueblo Viejo,
Loulo-Gounkoto, Tongon, North Mara, Bulyanhulu, Buzwagi
(notwithstanding the completion of the Acacia transaction on
September 17, 2019, we consolidated our interest in Acacia and
recorded a non-controlling interest of 36.1% in the income
statement for the entirety of the third quarter of 2019 as a matter
of convenience) and Nevada Gold Mines starting July 1, 2019. Refer
to note 5 to the Financial Statements for further information.
e. 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 72 of this MD&A.
f. 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 distinct
projects designed to increase the net present value of the mine and
are not related to current production. Significant projects in the
current year are stripping at Rangefront declines, the Goldrush
exploration declines, and construction of the third shaft at
Turquoise Ridge. Refer to page 71 of this MD&A.
g. Rehabilitation—accretion
and amortization
Includes depreciation on the assets related to
rehabilitation provisions of our gold operations and accretion on
the rehabilitation provision of our gold operations, split between
operating and non-operating sites.
h. Non-controlling interest
and copper operations
Removes general & administrative costs
related to non-controlling interests and copper based on a
percentage allocation of revenue. Also removes exploration,
evaluation and project expenses, rehabilitation costs and capital
expenditures incurred by our copper sites and the non-controlling
interest of North Mara, Bulyanhulu and Buzwagi (notwithstanding the
completion of the Acacia transaction on September 17, 2019, we
consolidated our interest in Acacia and recorded a non-controlling
interest of 36.1% in the income statement for the entirety of the
third quarter of 2019 as a matter of convenience), Pueblo Viejo,
Loulo-Gounkoto and Tongon operating segments and South Arturo
(63.1% of South Arturo from July 1, 2019 onwards as a result of its
contribution to Nevada Gold Mines). Also removes the
non-controlling interest of Nevada Gold Mines starting July 1,
2019. It also includes capital expenditures applicable to
equity method investments. Figures remove the impact of Pierina;
Golden Sunlight and Morila starting in the third quarter of 2019;
and Lagunas Norte starting in the fourth quarter of 2019. The
impact is summarized as the following:
| ($
millions) |
For the three months ended |
|
Non-controlling interest, copper operations and other |
3/31/20 |
|
12/31/19 |
|
3/31/19 |
|
| General & administrative
costs |
(6 |
) |
(3 |
) |
(10 |
) |
| Minesite exploration and
evaluation expenses |
(3 |
) |
(6 |
) |
(1 |
) |
| Rehabilitation - accretion and
amortization (operating sites) |
(4 |
) |
(1 |
) |
(1 |
) |
|
Minesite sustaining capital expenditures |
(112 |
) |
(125 |
) |
(63 |
) |
| All-in
sustaining costs total |
(125 |
) |
(135 |
) |
(75 |
) |
| Project exploration and
evaluation and project costs |
(19 |
) |
(14 |
) |
(2 |
) |
|
Project capital expenditures |
(14 |
) |
(14 |
) |
(1 |
) |
| All-in
costs total |
(33 |
) |
(28 |
) |
(3 |
) |
i. Ounces sold -
equity basis
Figures remove the impact of Pierina; Golden
Sunlight and Morila starting in the third quarter of 2019; and
Lagunas Norte starting in the fourth quarter of 2019, which are
mining incidental ounces as the sites enter closure.
j. Cost of
sales per ounce
Figures remove the cost of sales impact of
Pierina of $6 million for the three month periods ended
March 31, 2020 (December 31, 2019: $14 million and
March 31, 2019: $27 million); starting in the third quarter of
2019, Golden Sunlight of $nil for the three month periods ended
March 31, 2020 (December 31, 2019: $nil and
March 31, 2019: $nil) and Morila of $6 million for the three
month periods ended March 31, 2020 (December 31, 2019:
$13 million and March 31, 2019: $nil); and starting in the
fourth quarter of 2019, Lagunas Norte of $21 million for the three
month periods ended March 31, 2020 (December 31, 2019:
$26 million and March 31, 2019: $nil), which are mining
incidental ounces as these sites enter closure. Cost of sales per
ounce excludes non-controlling interest related to gold production.
Cost of sales applicable to gold per ounce is calculated using cost
of sales on an attributable basis (removing the non-controlling
interest of 40% Pueblo Viejo, 20% of Loulo-Gounkoto, 10.3% of
Tongon, 16% North Mara, Bulyanhulu and Buzwagi starting January 1,
2020, the effective date of the GoT's free carried interest (36.1%
up until September 30, 2019; notwithstanding the completion of the
Acacia transaction on September 17, 2019, we consolidated our
interest in Acacia and recorded a non-controlling interest of 36.1%
in the income statement for the entirety of the third quarter of
2019 as a matter of convenience) and 40% South Arturo from cost of
sales (63.1% of South Arturo from July 1, 2019 onwards as a result
of its contribution to Nevada Gold Mines)), divided by attributable
gold ounces. The non-controlling interest of 38.5% Nevada Gold
Mines is also removed from cost of sales from July 1, 2019
onwards.
k. Per
ounce figures
Cost of sales per ounce, total cash costs per
ounce, all-in sustaining costs per ounce and all-in costs per ounce
may not calculate based on amounts presented in this table due to
rounding.
l. Co-product costs per
ounce
Total cash costs per ounce, all-in sustaining
costs per ounce and all-in costs per ounce presented on a
co-product basis removes the impact of by-product credits of our
gold production (net of non-controlling interest) calculated
as:
| ($
millions) |
For the three months ended |
|
|
3/31/20 |
|
12/31/19 |
|
3/31/19 |
|
| By-product credits |
29 |
|
43 |
|
24 |
|
|
Non-controlling interest |
(15 |
) |
(17 |
) |
(8 |
) |
|
By-product credits (net of non-controlling interest) |
14 |
|
26 |
|
16 |
|
Endnote 9
Amounts reflect production and sales from Jabal Sayid and
Zaldívar on a 50% basis, which reflects our equity share of
production, and Lumwana.
Endnote 10
Copper cost of sales (Barrick’s share) is calculated as cost of
sales - copper plus our equity share of cost of sales attributable
to Zaldívar and Jabal Sayid divided by pounds sold.
Endnote 11
“C1 cash costs” per pound and “All-in sustaining costs” per
pound are non-GAAP financial performance measures. “C1 cash costs”
per pound is based on cost of sales but excludes the impact of
depreciation and royalties and production taxes and includes
treatment and refinement charges. “All-in sustaining costs” per
pound begins with “C1 cash costs” per pound and adds further costs
which reflect the additional costs of operating a mine, primarily
sustaining capital expenditures, general & administrative costs
and royalties and production taxes. Barrick believes that the use
of “C1 cash costs” per pound and “all-in sustaining costs” per
pound will assist investors, analysts, and other stakeholders in
understanding the costs associated with producing copper,
understanding the economics of copper mining, assessing our
operating performance, and also our ability to generate free cash
flow from current operations and to generate free cash flow on an
overall Company basis. “C1 cash costs” per pound and “All-in
sustaining costs” per pound are intended to provide additional
information only, do not have any standardized meaning under IFRS,
and may not be comparable to similar measures of performance
presented by other companies. These measures should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Further details on
these non-GAAP measures are provided in the MD&A accompanying
Barrick’s financial statements filed from time to time on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Copper Cost of
Sales to C1 cash costs and All-in sustaining costs, including on a
per pound basis
| ($
millions, except per pound information in dollars) |
For the three months ended |
|
|
3/31/20 |
|
12/31/19 |
|
3/31/19 |
|
| Cost of sales |
124 |
|
80 |
|
131 |
|
|
Depreciation/amortization |
(43 |
) |
(17 |
) |
(42 |
) |
|
Treatment and refinement charges |
39 |
|
25 |
|
31 |
|
|
Cash cost of sales applicable to equity method investments |
66 |
|
94 |
|
66 |
|
|
Less: royalties and production taxesa |
(11 |
) |
(9 |
) |
(12 |
) |
|
By-product credits |
(3 |
) |
(1 |
) |
(3 |
) |
| C1 cash cost
of sales |
172 |
|
172 |
|
171 |
|
|
General & administrative costs |
3 |
|
3 |
|
5 |
|
|
Rehabilitation - accretion and amortization |
3 |
|
7 |
|
3 |
|
|
Royalties and production taxesa |
11 |
|
9 |
|
12 |
|
|
Minesite exploration and evaluation costs |
1 |
|
2 |
|
2 |
|
|
Minesite sustaining capital expenditures |
32 |
|
60 |
|
59 |
|
|
Sustaining leases |
3 |
|
3 |
|
1 |
|
| All-in
sustaining costs |
225 |
|
256 |
|
253 |
|
| Pounds sold -
consolidated basis (millions pounds) |
110 |
|
91 |
|
103 |
|
| Cost of sales
per poundb,c |
1.96 |
|
2.26 |
|
2.21 |
|
| C1 cash cost
per poundb |
1.55 |
|
1.90 |
|
1.66 |
|
| All-in
sustaining costs per poundb |
2.04 |
|
2.82 |
|
2.46 |
|
a. For the three month period ended March 31, 2020,
royalties and production taxes include royalties of $11 million
(December 31, 2019: $8 million and March 31, 2019: $12
million).
b. Cost of sales per pound, C1 cash costs
per pound and all-in sustaining costs per pound may not calculate
based on amounts presented in this table due to rounding.
c. Cost of sales applicable to copper per
pound is calculated using cost of sales including our proportionate
share of cost of sales attributable to equity method investments
(Zaldívar and Jabal Sayid), divided by consolidated copper pounds
(including our proportionate share of copper pounds from our equity
method investments).
Endnote 12
The number of local suppliers participating in
Veladero’s supply chain tendering processes has increased by 279%,
as reported by the San Juan Chamber of Mining Services.
Endnote 13
Due to our hedging activities, which are
reflected in these sensitivities, we are partially protected
against changes in these factors.
Endnote 14
On a 100% basis. For additional detail regarding
Pueblo Viejo, see the Technical Report on the Pueblo Viejo mine,
Sanchez Ramirez Province, Dominican Republic, dated March 19, 2018,
and filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov on
March 23, 2018.
Endnote 15
According to the March export report issued by
the Export and Investment Center of the Dominican Republic (CEI-RD,
in Spanish).
Endnote 16
Cost of sales applicable to gold per ounce is
calculated using cost of sales applicable to gold on an
attributable basis (removing the non-controlling interest of 38.5%
of Nevada Gold Mines (including 63.1% of South Arturo), 40% Pueblo
Viejo, 20% of Loulo-Gounkoto, 10.3% of Tongon, and 16% of North
Mara, Bulyanhulu and Buzwagi from cost of sales and including our
proportionate share of cost of sales attributable to our equity
method investments in Kibali and Morila), divided by attributable
gold ounces sold. Cost of sales applicable to copper per pound is
calculated using cost of sales applicable to copper including our
proportionate share of cost of sales attributable to our equity
method investments in Zaldívar and Jabal Sayid, divided by
consolidated copper pounds sold (including our proportionate share
of copper pounds sold from our equity method investments).
Endnote 17
Includes our 36.9% share of South Arturo.
Endnote 18
Based on the communication we received from the
Government of Papua New Guinea that the SML will not be extended,
Porgera was placed on temporary care and maintenance on April 25,
2020 to ensure the safety and security of our employees and
communities. Due to the uncertainty related to the timing and scope
of future developments on the mine’s operating outlook, our full
year 2020 guidance for Porgera has been withdrawn.
Endnote 19
Amounts are on an 84% basis as the GoT's 16%
free-carried interest was made effective from January 1, 2020.
Endnote 20
Total cash costs and all-in sustaining costs per ounce include
the impact of hedges and/or costs allocated to non-operating
sites.
Endnote 21
Operating unit guidance ranges reflect
expectations at each individual operating unit, and may not add up
to the company-wide guidance range total. Guidance ranges exclude
Pierina, Lagunas Norte, Golden Sunlight and Morila (40%) which are
mining incidental ounces as it enters closure.
Endnote 22
Includes corporate administration costs.
Endnote 23
2020 Guidance includes our 61.5% share of Nevada Gold Mines, our
60% share of Pueblo Viejo, our 80% share of Loulo-Gounkoto, our
89.7% share of Tongon, our 84% share of North Mara, Bulyanhulu and
Buzwagi, our 50% share of Zaldívar and Jabal Sayid, and our 45% of
Kibali, and our share of joint operations.
Endnote 24
EBITDA is a non-GAAP financial measure, which
excludes the following from net earnings: income tax expense;
finance costs; finance income; and depreciation. Management
believes that EBITDA is a valuable indicator of our ability to
generate liquidity by producing operating cash flow to fund working
capital needs, service debt obligations, and fund capital
expenditures. Management uses EBITDA for this purpose. Adjusted
EBITDA removes the effect of impairment charges;
acquisition/disposition gains/losses; foreign currency translation
gains/losses; other expense adjustments; unrealized gains on
non-hedge derivative instruments; and the impact of the income tax
expense, finance costs, finance income and depreciation incurred in
our equity method accounted investments. We believe these items
provide a greater level of consistency with the adjusting items
included in our Adjusted Net Earnings reconciliation, with the
exception that these amounts are adjusted to remove any impact on
finance costs/income, income tax expense and/or depreciation as
they do not affect EBITDA. We believe this additional information
will assist analysts, investors and other stakeholders of Barrick
in better understanding our ability to generate liquidity from our
full business, including equity method investments, by excluding
these amounts from the calculation as they are not indicative of
the performance of our core mining business and not necessarily
reflective of the underlying operating results for the periods
presented. EBITDA and adjusted EBITDA are intended to provide
additional information only and do not have any standardized
meaning under IFRS and may not be comparable to similar measures of
performance presented by other companies. They should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Further details on
these non-GAAP measures are provided in the MD&A accompanying
Barrick’s financial statements filed from time to time on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Earnings
to EBITDA and Adjusted EBITDA
| ($
millions) |
For the three months ended |
|
|
3/31/20 |
|
12/31/19 |
|
3/31/19 |
|
| Net earnings (loss) |
663 |
|
1,776 |
|
140 |
|
|
Income tax expense |
386 |
|
784 |
|
167 |
|
|
Finance costs, neta |
88 |
|
90 |
|
100 |
|
|
Depreciation |
524 |
|
572 |
|
435 |
|
| EBITDA |
1,661 |
|
3,222 |
|
842 |
|
| Impairment charges (reversals)
of long-lived assetsb |
(336 |
) |
(566 |
) |
3 |
|
| Acquisition/disposition
(gains) lossesc |
(60 |
) |
(414 |
) |
0 |
|
| Loss on currency translation |
16 |
|
53 |
|
22 |
|
| Other expense (income)
adjustmentsd |
98 |
|
(845 |
) |
46 |
|
|
Income tax expense, net finance costs, and depreciation from equity
investees |
87 |
|
112 |
|
89 |
|
|
Adjusted EBITDA |
1,467 |
|
1,562 |
|
1,002 |
|
a. Finance costs exclude accretion.b. Net impairment
reversals for the three month period ended March 31, 2020 primarily
relate to non-current asset reversals at Bulyanhulu, offset by
losses at Buzwagi and North Mara. For the three month period
ended December 31, 2019, net impairment reversals primarily relate
to non-current asset impairments at Pueblo Viejo, partially offset
by impairment charges at
Pascua-Lama.c. Acquisition/disposition gains for the three
month period ended March 31, 2020 primarily relate to the gain on
the sale of Massawa. For the three month period ended
December 31, 2019, acquisition/disposition gains mainly relate to
the gain on the sale of our 50% interest in
Kalgoorlie.d. Other expense adjustments for the three month
period ended March 31, 2020 primarily relate to the impact of
changes in the discount rate assumptions on our closed mine
rehabilitation provision and losses on debt extinguishment.
For the three month period ended December 31, 2019, other
expense adjustments primarily relate to the gain on the
de-recognition of the deferred revenue liability relating to our
silver sale agreement with Wheaton Precious Metals Corp. and the
gain on a settlement of customs duty and indirect taxes at
Lumwana.
Endnote 25
|
Key Assumptions |
|
|
|
|
| Gold Price ($/oz) |
1,350 |
|
1,200 |
|
| Copper Price ($/lb) |
2.75 |
|
2.75 |
|
| Oil Price (WTI)
($/barrel) |
65 |
|
65 |
|
| AUD Exchange Rate
(AUD:USD) |
0.70 |
|
0.75 |
|
| ARS Exchange Rate
(USD:ARS) |
65.00 |
|
75.00 |
|
| CAD Exchange Rate
(USD:CAD) |
1.30 |
|
1.30 |
|
| CLP Exchange Rate
(USD:CLP) |
725 |
|
680 |
|
| EUR
Exchange Rate (EUR:USD) |
1.20 |
|
1.20 |
|
Barrick's five-year indicative outlook is based
on our current operating asset portfolio, sustaining projects in
progress and exploration/mineral resource management initiatives in
execution. Additional asset optimization, further exploration
growth, new project initiatives and divestitures are not included.
For the group gold and copper segments, and where applicable for a
specific region, this indicative outlook is subject to change and
assumes the following:
- The inclusion of synergies identified for Nevada Gold
Mines;
- Production from Cortez Deep South by 2020, in-line with
guidance;
- Production ramping-up from the third shaft at Turquoise Ridge
by 2022, in-line with guidance;
- Production from Goldrush commencing in 2021, in-line with
guidance;
- Production from the proposed Pueblo Viejo plant expansion and
tailings project by 2023, in-line with guidance. Our assumptions
are subject to change following the combined feasibility study for
the plant expansion and tailings project;
- An 84% ownership interest in North Mara, Bulyanhulu and
Buzwagi. At this time, we assume that Buzwagi will enter care and
maintenance in 2021;
- A restart of mining operations at Bulyanhulu by the end of
2020;
- Tongon will enter care and maintenance during the 2022
year;
- A sale of stockpiled concentrate related to the Tanzania assets
and Lumwana by the end of 2020;
- Production from the Zaldívar CuproChlor® Chloride Leach Project
by 2022. Antofagasta is the operator of Zaldívar.
- Production attributable to Porgera is based on the assumption
that the mine’s current care and maintenance status will be
temporary, and that the suspension of operations will not have a
significant impact on Barrick’s future production.
This five-year indicative outlook excludes:
- Production from Fourmile;
- Production from assets currently in care and maintenance
including Pierina, Lagunas Norte, Morila and Golden Sunlight;
- Production from long-term greenfield optionality from Donlin,
Pascua-Lama, Norte Abierto or Alturas.
Barrick's ten-year gold production profile is
also based on its current operating asset portfolio, sustaining
projects in progress and exploration/mineral resource management
initiatives in execution. Additional asset optimization, further
exploration growth, new project initiatives and divestitures are
not included. This ten-year outlook is subject to change and is
based on the same assumptions as the current five-year outlook
detailed above for the initial five years. The subsequent five
years is also subject to change and assumes attributable production
from Fourmile (starting in 2028) as well as exploration and mineral
resource management projects in execution at Nevada Gold Mines,
Hemlo and Porgera.
Financial and Operating Highlights
| |
For the three months ended |
|
|
3/31/20 |
12/31/19 |
% Change |
3/31/19 |
% Change |
|
Financial Results ($ millions) |
|
|
|
|
|
|
|
|
|
|
| Revenues |
2,721 |
|
2,883 |
|
(6 |
)% |
2,093 |
|
30 |
% |
| Cost of sales |
1,776 |
|
1,987 |
|
(11 |
)% |
1,490 |
|
19 |
% |
| Net earningsa |
400 |
|
1,387 |
|
(71 |
)% |
111 |
|
260 |
% |
| Adjusted net earningsb |
285 |
|
300 |
|
(5 |
)% |
184 |
|
55 |
% |
| Adjusted EBITDAb |
1,467 |
|
1,562 |
|
(6 |
)% |
1,002 |
|
46 |
% |
| Adjusted EBITDA marginc |
54 |
% |
54 |
% |
0 |
% |
48 |
% |
13 |
% |
| Minesite sustaining capital
expendituresd |
370 |
|
394 |
|
(6 |
)% |
253 |
|
46 |
% |
| Project capital
expendituresd |
76 |
|
46 |
|
65 |
% |
120 |
|
(37 |
)% |
| Total consolidated capital
expendituresd,e |
451 |
|
446 |
|
1 |
% |
374 |
|
21 |
% |
| Net cash provided by operating
activities |
889 |
|
875 |
|
2 |
% |
520 |
|
71 |
% |
| Net cash provided by operating
activities marginf |
33 |
% |
30 |
% |
10 |
% |
25 |
% |
32 |
% |
| Free cash flowb |
438 |
|
429 |
|
2 |
% |
146 |
|
200 |
% |
| Net earnings per share (basic
and diluted) |
0.22 |
|
0.78 |
|
(72 |
)% |
0.06 |
|
267 |
% |
| Adjusted net earnings (basic)b
per share |
0.16 |
|
0.17 |
|
(6 |
)% |
0.11 |
|
45 |
% |
|
Weighted average diluted common shares (millions of shares) |
1,778 |
|
1,778 |
|
0 |
% |
1,746 |
|
2 |
% |
| Operating
Results |
|
|
|
|
|
|
|
|
|
|
| Gold production (thousands of
ounces)g |
1,250 |
|
1,439 |
|
(13 |
)% |
1,367 |
|
(9 |
)% |
| Gold sold (thousands of
ounces)g |
1,220 |
|
1,413 |
|
(14 |
)% |
1,365 |
|
(11 |
)% |
| Market gold price ($/oz) |
1,583 |
|
1,481 |
|
7 |
% |
1,304 |
|
21 |
% |
| Realized gold priceb,g
($/oz) |
1,589 |
|
1,483 |
|
7 |
% |
1,307 |
|
22 |
% |
| Gold cost of sales (Barrick’s
share)g,h ($/oz) |
1,020 |
|
1,046 |
|
(2 |
)% |
947 |
|
8 |
% |
| Gold total cash costsb,g
($/oz) |
692 |
|
692 |
|
0 |
% |
631 |
|
10 |
% |
| Gold all-in sustaining
costsb,g ($/oz) |
954 |
|
923 |
|
3 |
% |
825 |
|
16 |
% |
| Copper production (millions of
pounds)i |
115 |
|
117 |
|
(2 |
)% |
106 |
|
8 |
% |
| Copper sold (millions of
pounds)i |
110 |
|
91 |
|
21 |
% |
103 |
|
7 |
% |
| Market copper price
($/lb) |
2.56 |
|
2.67 |
|
(4 |
)% |
2.82 |
|
(9 |
)% |
| Realized copper priceb,i
($/lb) |
2.23 |
|
2.76 |
|
(19 |
)% |
3.07 |
|
(27 |
)% |
| Copper cost of sales
(Barrick’s share)i,j ($/lb) |
1.96 |
|
2.26 |
|
(13 |
)% |
2.21 |
|
(11 |
)% |
| Copper C1 cash costsb,i
($/lb) |
1.55 |
|
1.90 |
|
(18 |
)% |
1.66 |
|
(7 |
)% |
| Copper
all-in sustaining costsb,i ($/lb) |
2.04 |
|
2.82 |
|
(28 |
)% |
2.46 |
|
(17 |
)% |
|
|
As at 3/31/20 |
As at 12/31/19 |
% Change |
As at 3/31/19 |
% Change |
| Financial
Position ($ millions) |
|
|
|
|
|
|
|
|
|
|
| Debt (current and long-term) |
5,179 |
|
5,536 |
|
(6 |
)% |
5,807 |
|
(11 |
)% |
| Cash and equivalents |
3,327 |
|
3,314 |
|
0 |
% |
2,153 |
|
55 |
% |
|
Debt, net of cash |
1,852 |
|
2,222 |
|
(17 |
)% |
3,654 |
|
(49 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
- Net earnings represents net earnings attributable to the equity
holders of the Company.
- Adjusted net earnings, adjusted EBITDA, free cash flow,
adjusted net earnings per share, realized gold price, all-in
sustaining costs, total cash costs, C1 cash costs and realized
copper price are non-GAAP financial performance measures with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. For further
information and a detailed reconciliation of each non-GAAP measure
to the most directly comparable IFRS measure, please see pages 79
to 95 of our first quarter MD&A.
- Represents adjusted EBITDA divided by revenue.
- Amounts presented on a consolidated cash basis. Project capital
expenditures are included in our calculation of all-in costs, but
not included in our calculation of all-in sustaining costs.
- Total consolidated capital expenditures also includes
capitalized interest.
- Represents net cash provided by operating activities divided by
revenue.
- Includes North Mara, Bulyanhulu and Buzwagi on a 84% basis
starting January 1, 2020 (and on a 63.9% basis from January 1, 2019
to September 30, 2019; notwithstanding the completion of the Acacia
transaction on September 17, 2019, we consolidated our interest in
Acacia and recorded a non-controlling interest of 36.1% in the
income statement for the entirety of the third quarter of 2019 as a
matter of convenience, and on a 100% basis from October 1, 2019 to
December 31, 2019), Pueblo Viejo on a 60% basis, South Arturo on a
36.9% basis from July 1, 2019 onwards as a result of its
contribution to Nevada Gold Mines (and on a 60% basis from January
1, 2019 to June 30, 2019), Veladero on a 50% basis, Loulo-Gounkoto
on an 80% basis, Kibali on a 45% basis, Tongon on an 89.7% basis,
and Morila on a 40% basis until the second quarter of 2019, which
reflects our equity share of production and sales. Also
removes the non-controlling interest of 38.5% Nevada Gold Mines
from July 1, 2019 onwards.
- Gold cost of sales (Barrick’s share) is calculated as cost of
sales - gold on an attributable basis (excluding sites in care and
maintenance) divided by ounces sold.
- Amounts reflect production and sales from Jabal Sayid and
Zaldívar on a 50% basis, which reflects our equity share of
production, and Lumwana.
- Copper cost of sales (Barrick’s share) is calculated as cost of
sales - copper plus our equity share of cost of sales attributable
to Zaldívar and Jabal Sayid divided by pounds sold.
Consolidated Statements of Income
| Barrick
Gold Corporation(in millions of United States dollars, except per
share data) (Unaudited) |
Three months endedMarch 31, |
|
|
2020 |
|
2019 |
|
|
Revenue (notes 5 and 6) |
$2,721 |
|
$2,093 |
|
| Costs and expenses
(income) |
|
|
| Cost of sales (notes 5 and
7) |
1,776 |
|
1,490 |
|
| General and administrative
expenses |
40 |
|
54 |
|
| Exploration, evaluation and
project expenses |
71 |
|
74 |
|
| Impairment (reversals) charges
(notes 9B and 13) |
(336 |
) |
3 |
|
| Loss on currency translation |
16 |
|
22 |
|
| Closed mine rehabilitation |
90 |
|
25 |
|
| Income from equity investees
(note 12) |
(54 |
) |
(28 |
) |
|
Other (income) expense (note 9A) |
(35 |
) |
26 |
|
| Income before finance
costs and income taxes |
$1,153 |
|
$427 |
|
|
Finance costs, net |
(104 |
) |
(120 |
) |
| Income before income
taxes |
$1,049 |
|
$307 |
|
|
Income tax expense (note 10) |
(386 |
) |
(167 |
) |
|
Net income |
$663 |
|
$140 |
|
| Attributable
to: |
|
|
| Equity holders of Barrick Gold
Corporation |
$400 |
|
$111 |
|
|
Non-controlling interests |
$263 |
|
$29 |
|
| |
|
|
| Earnings per share
data attributable to the equity holders of Barrick Gold Corporation
(note 8) |
|
|
| Net income |
|
|
|
Basic |
$0.22 |
|
$0.06 |
|
|
Diluted |
$0.22 |
|
$0.06 |
|
| |
|
|
|
|
The notes to these unaudited condensed interim financial
statements, which are contained in the First Quarter Report 2020
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 endedMarch 31, |
|
|
2020 |
2019 |
|
Net income |
$663 |
|
$140 |
|
| Other comprehensive
(loss) income, net of taxes |
|
|
| Items that may be
reclassified subsequently to profit or loss: |
|
|
| Unrealized gains (losses) on
derivatives designated as cash flow hedges, net of tax $nil and
$nil |
1 |
|
— |
|
| Currency translation adjustments,
net of tax $nil and $nil |
(4 |
) |
(2 |
) |
| Items that will not be
reclassified to profit or loss: |
|
|
| Actuarial gain (loss) on post
employment benefit obligations, net of tax $3 and $nil |
3 |
|
— |
|
|
Net change on equity investments, net of tax $nil and $nil |
(25 |
) |
(4 |
) |
|
Total other comprehensive loss |
(25 |
) |
(6 |
) |
|
Total comprehensive income |
$638 |
|
$134 |
|
| Attributable
to: |
|
|
| Equity holders of Barrick Gold
Corporation |
$375 |
|
$105 |
|
|
Non-controlling interests |
$263 |
|
$29 |
|
| |
|
|
|
|
The notes to these unaudited condensed interim financial
statements, which are contained in the First Quarter Report 2020
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 endedMarch 31, |
|
|
2020 |
2019 |
| OPERATING
ACTIVITIES |
|
|
|
Net income |
$663 |
|
$140 |
|
| Adjustments for the following
items: |
|
|
|
Depreciation |
524 |
|
435 |
|
|
Finance costs, net |
111 |
|
127 |
|
|
Impairment (reversals) charges (notes 9B and 13) |
(336 |
) |
3 |
|
|
Income tax expense (note 10) |
386 |
|
167 |
|
|
Gain on sale of non-current assets |
(60 |
) |
— |
|
|
Loss on currency translation |
16 |
|
22 |
|
| Change in working capital
(note 11) |
(332 |
) |
(248 |
) |
| Other
operating activities (note 11) |
53 |
|
(24 |
) |
| Operating cash flows before
interest and income taxes |
1,025 |
|
622 |
|
| Interest paid |
(24 |
) |
(28 |
) |
| Income
taxes paid |
(112 |
) |
(74 |
) |
|
Net cash provided by operating activities |
889 |
|
520 |
|
| INVESTING
ACTIVITIES |
|
|
| Property, plant and
equipment |
|
|
|
Capital expenditures (note 5) |
(451 |
) |
(374 |
) |
|
Sales proceeds |
7 |
|
3 |
|
| Investment purchases |
— |
|
(3 |
) |
| Divestitures (note 4) |
256 |
|
— |
|
| Cash acquired in merger |
— |
|
751 |
|
| Other
investing activities (note 11) |
25 |
|
45 |
|
|
Net cash provided by (used in) investing
activities |
(163 |
) |
422 |
|
| FINANCING
ACTIVITIES |
|
|
| Lease repayments |
(5 |
) |
(12 |
) |
| Debt repayments |
(351 |
) |
(16 |
) |
| Dividends |
(122 |
) |
(333 |
) |
| Funding from non-controlling
interests |
1 |
|
6 |
|
| Disbursements to
non-controlling interests |
(217 |
) |
(5 |
) |
| Other financing
activities |
(15 |
) |
— |
|
|
Net cash used in financing activities |
(709 |
) |
(360 |
) |
|
Effect of exchange rate changes on cash and
equivalents |
(4 |
) |
— |
|
| Net increase in cash and
equivalents |
13 |
|
582 |
|
|
Cash and equivalents at the beginning of
period |
3,314 |
|
1,571 |
|
|
Cash and equivalents at the end of period |
$3,327 |
|
$2,153 |
|
| |
|
|
|
|
The notes to these unaudited condensed interim financial
statements, which are contained in the First Quarter Report 2020
available on our website are an integral part of these consolidated
financial statements.
Consolidated Balance Sheets
| Barrick
Gold Corporation(in millions of United States dollars)
(Unaudited) |
As at March 31, |
As at December 31, |
|
|
2020 |
2019 |
| ASSETS |
|
|
| Current assets |
|
|
|
Cash and equivalents (note 14A) |
$3,327 |
|
$3,314 |
|
|
Accounts receivable |
371 |
|
363 |
|
|
Inventories |
2,159 |
|
2,289 |
|
|
Other current assets |
594 |
|
565 |
|
| Total current assets (excluding
assets classified as held for sale) |
$6,451 |
|
$6,531 |
|
|
Assets classified as held for sale (note 4A) |
— |
|
356 |
|
| Total current assets |
$6,451 |
|
$6,887 |
|
| Non-current assets |
|
|
|
Equity in investees (note 12) |
4,556 |
|
4,527 |
|
|
Property, plant and equipment |
24,809 |
|
24,141 |
|
|
Goodwill |
4,769 |
|
4,769 |
|
|
Intangible assets |
230 |
|
226 |
|
|
Deferred income tax assets |
149 |
|
235 |
|
|
Non-current portion of inventory |
2,523 |
|
2,300 |
|
|
Other assets |
1,452 |
|
1,307 |
|
|
Total assets |
$44,939 |
|
$44,392 |
|
| LIABILITIES AND
EQUITY |
|
|
| Current liabilities |
|
|
|
Accounts payable |
$1,140 |
|
$1,155 |
|
|
Debt (note 14B) |
29 |
|
375 |
|
|
Current income tax liabilities |
249 |
|
224 |
|
|
Other current liabilities |
552 |
|
622 |
|
| Total current liabilities |
$1,970 |
|
$2,376 |
|
| Non-current liabilities |
|
|
|
Debt (note 14B) |
5,150 |
|
5,161 |
|
|
Provisions |
3,267 |
|
3,114 |
|
|
Deferred income tax liabilities |
3,079 |
|
3,091 |
|
|
Other liabilities |
1,118 |
|
823 |
|
|
Total liabilities |
$14,584 |
|
$14,565 |
|
| Equity |
|
|
|
Capital stock (note 16) |
$29,233 |
|
$29,231 |
|
|
Deficit |
(9,446 |
) |
(9,722 |
) |
|
Accumulated other comprehensive loss |
(147 |
) |
(122 |
) |
|
Other |
2,047 |
|
2,045 |
|
|
Total equity attributable to Barrick Gold Corporation
shareholders |
$21,687 |
|
$21,432 |
|
|
Non-controlling interests |
8,668 |
|
8,395 |
|
|
Total equity |
$30,355 |
|
$29,827 |
|
|
Contingencies and commitments (notes 5 and 17) |
|
|
|
Total liabilities and equity |
$44,939 |
|
$44,392 |
|
| |
|
|
|
|
The notes to these unaudited condensed interim financial
statements, which are contained in the First Quarter Report 2020
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) |
CommonShares (inthousands) |
Capitalstock |
Retainedearnings(deficit) |
|
Accumulatedothercomprehensiveincome (loss)1 |
|
Other2 |
Total equityattributable toshareholders |
|
Non-controllinginterests |
|
Totalequity |
|
|
At January 1, 2020 |
1,777,927 |
$29,231 |
($9,722 |
) |
($122 |
) |
$2,045 |
$21,432 |
|
$8,395 |
|
$29,827 |
|
|
Net income |
— |
— |
400 |
|
— |
|
— |
400 |
|
263 |
|
663 |
|
|
Total other comprehensive income (loss) |
— |
— |
— |
|
(25 |
) |
— |
(25 |
) |
— |
|
(25 |
) |
|
Total comprehensive income (loss) |
— |
— |
400 |
|
(25 |
) |
— |
375 |
|
263 |
|
638 |
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
Dividends |
— |
— |
(122 |
) |
— |
|
— |
(122 |
) |
— |
|
(122 |
) |
|
Issuance of 16% interest in Tanzania mines (note 13) |
— |
— |
— |
|
— |
|
— |
— |
|
234 |
|
234 |
|
|
Issued on exercise of stock options |
30 |
— |
— |
|
— |
|
— |
— |
|
— |
|
— |
|
|
Funding from non-controlling interests |
— |
— |
— |
|
— |
|
— |
— |
|
1 |
|
1 |
|
|
Disbursements to non-controlling interests |
— |
— |
— |
|
— |
|
— |
— |
|
(225 |
) |
(225 |
) |
|
Dividend reinvestment plan (note 16) |
78 |
2 |
(2 |
) |
— |
|
— |
— |
|
— |
|
— |
|
|
Share-based payments |
— |
— |
— |
|
— |
|
2 |
2 |
|
— |
|
2 |
|
|
Total transactions with owners |
108 |
2 |
(124 |
) |
— |
|
2 |
(120 |
) |
10 |
|
(110 |
) |
|
At March 31, 2020 |
1,778,035 |
$29,233 |
($9,446 |
) |
($147 |
) |
$2,047 |
$21,687 |
|
$8,668 |
|
$30,355 |
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2019 |
1,167,847 |
$20,883 |
($13,453 |
) |
($158 |
) |
$321 |
$7,593 |
|
$1,792 |
|
$9,385 |
|
|
Net income |
— |
— |
111 |
|
— |
|
— |
111 |
|
29 |
|
140 |
|
|
Total other comprehensive income (loss) |
— |
— |
— |
|
(6 |
) |
— |
(6 |
) |
— |
|
(6 |
) |
|
Total comprehensive income (loss) |
— |
— |
111 |
|
(6 |
) |
— |
105 |
|
29 |
|
134 |
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
Dividends |
— |
— |
(3 |
) |
— |
|
— |
(3 |
) |
— |
|
(3 |
) |
|
Merger with Randgold Resources Limited |
583,669 |
7,903 |
— |
|
— |
|
— |
7,903 |
|
882 |
|
8,785 |
|
|
Funding from non-controlling interests |
— |
— |
— |
|
— |
|
— |
— |
|
6 |
|
6 |
|
|
Disbursements to non-controlling interests |
— |
— |
— |
|
— |
|
— |
— |
|
(5 |
) |
(5 |
) |
|
Dividend reinvestment plan |
466 |
6 |
(6 |
) |
— |
|
— |
— |
|
— |
|
— |
|
|
Total transactions with owners |
584,135 |
7,909 |
(9 |
) |
— |
|
— |
7,900 |
|
883 |
|
8,783 |
|
|
At March 31, 2019 |
1,751,982 |
$28,792 |
($13,351 |
) |
($164 |
) |
$321 |
$15,598 |
|
$2,704 |
|
$18,302 |
|
| 1 |
Includes
cumulative translation losses at March 31, 2020:
$92 million (March 31, 2019: $84 million). |
| 2 |
Includes additional paid-in capital as at March 31, 2020:
$2,009 million (December 31, 2019: $2,007 million;
March 31, 2019: $283 million). |
| |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the First Quarter Report 2020
available on our website are an integral part of these consolidated
financial statements.
Enquiries
President and CEOMark Bristow+1 647 205 7694+44 788 071 1386
Senior EVP and CFOGraham Shuttleworth+1 647 262 2095+44 779 771
1338+44 1534 735 333
Investor and Media RelationsKathy du Plessis+44 20 7557
7738Email: barrick@dpapr.com
Corporate Office
Barrick Gold Corporation161 Bay Street, Suite
3700Toronto, Ontario M5J 2S1Canada
Telephone: +1 416 861-9911Email: investor@barrick.comWebsite:
www.barrick.com
Shares Listed
GOLD The New York Stock Exchange
ABXThe Toronto Stock Exchange
Transfer Agents and Registrars
AST Trust Company (Canada)P.O. Box 700, Postal
Station BMontreal, Quebec H3B 3K3orAmerican Stock
Transfer & Trust Company, LLC6201 – 15 AvenueBrooklyn,
New York 11219
Telephone: 1-800-387-0825Fax: 1-888-249-6189Email:
inquiries@astfinancial.comWebsite: www.astfinancial.com
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 “deliver”, "points to", "plan", "progresses", "upside",
“opportunities”, "objective", "expected", “potential”, “strategy”,
“will”, "proposed", "aim", "continues" 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 and estimates of future costs; cash flow forecasts;
projected capital, operating and exploration expenditures,
including with respect to Barrick’s 10-year production profile;
Barrick’s engagement with local communities to manage the Covid-19
pandemic; Barrick’s response to the government of Papua New
Guinea’s decision not to extend Porgera’s Special Mining Lease; the
duration of the temporary suspension of operations at
Porgera; potential mineralization, and potential discoveries of new
Tier One mines; potential extensions to life of mine, including at
Veladero; potential exploration targets and mineral resource
potential, including reserve replenishment; opportunities to
deliver value for Barrick’s owners and stakeholders; Barrick’s
energy and sustainability strategies, including potential
reductions to Barrick’s carbon footprint and costs and improvements
in Barrick’s sustainability performance including the timing of
Barrick’s updated ESG scorecard; future investments in community
projects and contributions to local economies; expected benefits of
the proposed closure solution at Golden Sunlight; and expectations
regarding future price assumptions, financial performance and other
outlook or guidance.
Forward-looking statements are necessarily based upon a number
of estimates and assumptions including material estimates and
assumptions related to the factors set forth below that, while
considered reasonable by the Company as at the date of this press
release in light of management’s experience and perception of
current conditions and expected developments, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking statements and undue reliance should not be
placed on such statements and information. Such factors include,
but are not limited to: fluctuations in the spot and forward price
of gold, copper or certain other commodities (such as silver,
diesel fuel, natural gas and electricity); the speculative nature
of mineral exploration and development; changes in mineral
production performance, exploitation and exploration successes;
risks associated with projects in the early stages of evaluation
and for which additional engineering and other analysis is
required; the benefits expected from recent transactions being
realized, including Nevada Gold Mines; diminishing quantities or
grades of reserves; increased costs, delays, suspensions and
technical challenges associated with the construction of capital
projects; operating or technical difficulties in connection with
mining or development activities, including geotechnical challenges
and disruptions in the maintenance or provision of required
infrastructure and information technology systems; failure to
comply with environmental and health and safety laws and
regulations; non-renewal of key licenses by governmental
authorities, including non-renewal of Porgera’s Special Mining
Lease; timing of receipt of, or failure to comply with, necessary
permits and approvals; uncertainty whether some or all of Barrick's
targeted investments and projects will meet the Company’s capital
allocation objectives and internal hurdle rate; the impact of
global liquidity and credit availability on the timing of cash
flows and the values of assets and liabilities based on projected
future cash flows; adverse changes in our credit ratings; the
impact of inflation; fluctuations in the currency markets; changes
in U.S. dollar interest rates; risks arising from holding
derivative instruments; changes in national and local government
legislation, taxation, controls or regulations and/or changes in
the administration of laws, policies and practices, expropriation
or nationalization of property and political or economic
developments in Canada, the United States and other jurisdictions
in which the Company or its affiliates do or may carry on business
in the future; lack of certainty with respect to foreign legal
systems, corruption and other factors that are inconsistent with
the rule of law; risks associated with illegal and artisanal
mining; risks associated with new diseases, epidemics and
pandemics, including the effects and potential effects of the
global Covid-19 pandemic; disruption of supply routes which may
cause delays in construction and mining activities; damage to the
Company’s reputation due to the actual or perceived occurrence of
any number of events, including negative publicity with respect to
the Company’s handling of environmental matters or dealings with
community groups, whether true or not; the possibility that future
exploration results will not be consistent with the Company’s
expectations; risks that exploration data may be incomplete and
considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; risk of loss due to acts of
war, terrorism, sabotage and civil disturbances; litigation and
legal and administrative proceedings; contests over title to
properties, particularly title to undeveloped properties, or over
access to water, power and other required infrastructure; business
opportunities that may be presented to, or pursued by, the Company;
our ability to successfully integrate acquisitions or complete
divestitures, including our ability to successfully reintegrate
Acacia’s operations; risks associated with working with partners in
jointly controlled assets; employee relations including loss of key
employees; increased costs and physical risks, including extreme
weather events and resource shortages, related to climate change;
and availability and increased costs associated with mining inputs
and labor. Barrick also cautions that its 2020 guidance and five
and ten year plan 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.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/1c9b7d83-ad0b-4293-a14e-589fad0c4d93
Grafico Azioni Barrick Gold (TSX:ABX)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Barrick Gold (TSX:ABX)
Storico
Da Apr 2023 a Apr 2024
