Kibali, ranked among the world’s Top 10 gold mines, has made a
strong start to 2019 after setting a new production record last
year, Barrick President and Chief Executive Officer Mark Bristow
said here today. Barrick operates Kibali, which is a joint venture
with AngloGold Ashanti and the Congolese parastatal SOKIMO.
Speaking at a briefing for local media and
stakeholders, Bristow said Kibali was continuing to break records
en route to its 2019 guidance of 750,000 ounces, the latest being
the 285,000 tonnes of ore hoisted through the shaft in March1.
Throughput and recovery remained at or above nameplate levels and
Kibali continued to add new technology to its autonomous mining
operation, a field in which it is already an industry leader.
“With Kibali producing at this rate, we are
intensifying our focus on reserve and resource replacement.
Drilling is targeting the extensions of the KCD Gorumbwa complex of
orebodies, along the 30km gold bearing KZ structure, and the
western extensions of the Kibali Graben. This has confirmed that
there is a substantial potential for replenishing the reserve and
resource base,” Bristow said.
“Kibali is one of five Tier One2 gold mines in the
Barrick stable and it is an outstanding example of Barrick’s
commitment to partnerships. This is demonstrated by the
constructive relationship between its three shareholders as well as
by its continuing investment in the local economy. During the past
quarter the mine spent $38 million with Congolese contractors and
the recently initiated Durba road upgrade project is being
undertaken by 100% Congolese owned and operated contractors which
Kibali developed.”
Bristow noted that, at their meeting in Washington
DC earlier this month, the Congolese president, his excellency
Felix Tshisekedi, and Barrick Executive Chairman John Thornton had
confirmed their joint commitment to a partnership designed to
develop the country’s gold mining industry. Follow-up meetings held
in-country over the last 24 hours between President Felix
Tshisekedi, Bristow and their respective executive teams focused on
partnership initiatives and strategies to support the continued
growth of the mining industry for the benefit of investors, the
Congolese nation and other stakeholders.
“The DRC government is one of our most important
partners and we look forward to working with them to create an
economic climate capable of attracting large and long-term
investments such as the one we made in Kibali. This requires a
mining code which equitably balances the interests of the State and
the capital providers and allows both to participate fairly in the
value creation that the mining industry offers. We are and will
continue to engage with the government and administration on the
issues around the code introduced last year,” he said.
Enquiries:
President and Chief Executive OfficerMark Bristow+1
647 205 7694+44 788 071 1386
Chief Operating Officer, Africa and Middle
EastWillem Jacobs +44 779 557 5271+243 820 678 040
DRC Country Manager Cyrille Mutombo +243 812 532
441
Investor and Media RelationsKathy du Plessis+44 20
7557 7738Email: barrick@dpapr.com Website:
www.barrick.com
About the Kibali Gold Mine
The Kibali mine, located in the Democratic Republic
of Congo, is one of the largest gold mines in Africa. It comprises
an integrated open pit and an underground operation as well as a
7.2Mtpa processing plant. First gold was poured in 2013 from open
pit operations and commissioning of the full underground operation
was completed at the end of 2017.
Kibali is in the northeast of the DRC,
approximately 220km east of the capital of the Haut Uele province,
Isiro, 150km west of the Ugandan border town of Arua and 1,800km
from the Kenyan port of Mombasa. The mine is owned by Kibali
Goldmines SA (Kibali) which is a joint venture company effectively
owned 45% by each of Barrick and AngloGold Ashanti, and 10% by
Société Miniére de Kilo-Moto (SOKIMO). The mine was developed and
is operated by Barrick.
About Barrick
On January 1, 2019, a new Barrick was born out of
the merger between Barrick Gold Corporation and Randgold Resources
Limited. Shares in the new company trade on the NYSE (GOLD)
and the TSX (ABX).
The merger has created a sector-leading gold
company which owns five of the industry’s Top 10 Tier One2 gold
assets (Cortez and Goldstrike in Nevada, USA (100%); Kibali in DRC
(45%); Loulo-Gounkoto in Mali (80%); and Pueblo Viejo in Dominican
Republic (60%)) and two with the potential to become Tier One2 gold
assets (Goldrush/Fourmile (100%) and Turquoise Ridge (75%), both in
the USA).
With mining operations and projects in 15
countries, including Argentina, Australia, Canada, Chile, Côte
d’Ivoire, DRC, Dominican Republic, Mali, Papua New Guinea, Peru,
Saudi Arabia, Senegal, USA, and Zambia, Barrick has the lowest
total cash cost3 position among its senior gold peers4 and a
diversified asset portfolio positioned for growth in many of the
world’s most prolific gold districts.
Cautionary Statement on Forward-Looking
Information
Certain information contained in this press
release, including any information as to Barrick’s strategy, 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
“potential”, “look forward” and “continue” and similar expressions
identify forward-looking statements. In particular, this press
release contains forward-looking statements including, without
limitation, with respect to: 2019 production guidance with respect
to the Kibali mine; opportunities for reserve replacement along the
KZ trend and around KCD; engagement with the government of the
Democratic Republic of Congo in relation to a new mining code
introduced last year; and future contributions to the economy of
the Democratic Republic of Congo.
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 Barrick 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: the speculative nature of mineral
exploration and development; changes in mineral production
performance, exploitation, and exploration successes; diminishing
quantities or grades of reserves; 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 the Democratic Republic of Congo; lack of
certainty with respect to foreign legal systems, corruption, and
other factors that are inconsistent with the rule of law; risk of
loss due to acts of war, terrorism, sabotage and civil
disturbances; fluctuations in the spot and forward price of gold,
copper, or certain other commodities (such as silver, diesel fuel,
natural gas, and electricity); timing of receipt of, or failure to
comply with, necessary permits and approvals; failure to comply
with environmental and health and safety laws and regulations;
litigation; damage to the Barrick’s reputation due to the actual or
perceived occurrence of any number of events, including negative
publicity with respect to the Barrick’s handling of environmental
matters or dealings with community groups, whether true or not;
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; the impact of global liquidity and
credit availability on the timing of cash flows and the values of
assets and liabilities based on projected future cash flows; the
impact of inflation; fluctuations in the currency markets; contests
over title to properties, particularly title to undeveloped
properties, or over access to water, power, and other required
infrastructure; 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. In addition, there are risks and hazards associated with the
business of mineral exploration, development, and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding, and gold bullion, copper
cathode, or gold or copper concentrate losses (and the risk of
inadequate insurance, or inability to obtain insurance, to cover
these risks).
Many of these uncertainties and contingencies can
affect our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements, and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
Barrick disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
Technical Information
The scientific and technical information contained
in this press release has been reviewed and approved by Simon
Bottoms, CGeol, MGeol, FGS, MAusIMM, Mineral Resources Manager:
Africa and Middle East of Barrick, a “Qualified Person” as defined
in National Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
Third Party Data
The total cash costs comparison of Barrick to its
senior gold peers is based on data obtained from Wood Mackenzie as
of August 31, 2018. Wood Mackenzie is an independent third party
research and consultancy firm that provides data for, among others,
the metals and mining industry. Wood Mackenzie is not affiliated
with Barrick.
Where figures for Barrick are compared to its
senior gold peers, the data from Wood Mackenzie has been used to
ensure consistency in the compared measure across the comparator
group. Barrick does not have the ability to verify the Wood
Mackenzie figures and the non-GAAP financial performance measures
used by Wood Mackenzie may not correspond to the non-GAAP financial
performance measures calculated by Barrick or any of the other
senior gold peers.
Endnotes
- 100% basis. In 2018, Randgold’s 45% equity share of gold
production from Kibali was 363,000 ounces.
- A Tier One Gold Asset is a mine with a stated life in excess of
10 years with 2017 production of at least 500,000 ounces of gold
and 2017 total cash cost per ounce within the bottom half of Wood
Mackenzie’s cost curve tools (excluding state-owned and
privately-owned mines). For purposes of determining Tier One Gold
Assets, “Total cash cost” per ounce is based on data from Wood
Mackenzie as of August 31, 2018, except in respect of Barrick’s
mines where Barrick may rely on its internal data which is more
current and reliable. The Wood Mackenzie calculation of “Total cash
cost” per ounce may not be identical to the manner in which Barrick
calculates comparable measures. “Total cash cost” per ounce is a
non-GAAP financial performance measure with no standardized meaning
under IFRS and therefore may not be comparable to similar measures
presented by other issuers. “Total cash cost” per ounce should not
be considered by investors as an alternative to operating profit,
net profit attributable to shareholders, or to other IFRS measures.
Wood Mackenzie is an independent third party research and
consultancy firm that provides data for, among others, the metals
and mining industry. Wood Mackenzie does not have any affiliation
to Barrick. See also Endnote #3.
- “Lowest total cash cost” is based on data from Wood Mackenzie
as of August 31, 2018. “Total cash cost” is a non-GAAP financial
performance measure with no standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. Financial comparisons between the post-merger
Barrick and its senior gold peers are made on the basis of the data
presented by Wood Mackenzie which may not be calculated in the same
manner as Barrick calculates comparable measures. Barrick believes
that total cash cost is a useful indicator for investors and
management of a mining company’s performance as it provides an
indication of a company’s profitability and efficiency, the trends
in cash costs as the company’s operations mature, and a benchmark
of performance to allow for comparison against other
companies.
- Senior gold peers means the following companies: Agnico Eagle
Mines Limited, Goldcorp Inc., Newcrest Mining Limited, and Newmont
Mining Corporation.
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