- All amounts expressed in US dollars
Toronto – Capturing the benefit of higher gold prices through agile management and operational efficiency, Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) increased its operating cash flow by 80% quarter-on-quarter to $1.9 billion and free cash flow 1 by 151% to $1.3 billion in the third quarter of 2020 — a record level of quarterly free cash flow for the company. Net earnings per share was 50 cents, while adjusted net earnings per share 2 was 78% higher than the prior quarter at 41 cents. Debt net of cash was reduced by a further 71% to $417 million, compared to $1.4 billion in the prior quarter, and the quarterly dividend was increased again, the third time in the past year, rising by 12.5% to 9 cents per share.

President and chief executive Mark Bristow said that two quarters into the Covid-19 pandemic, it was clear how effectively Barrick had been dealing with the impact of the virus on its business, its people and its communities.

“As today’s results show, in the face of unprecedented challenges we have succeeded in beating our earnings consensus, reinforcing our 10-year plan and capitalizing on the gold price to maintain an industry-leading balance sheet. Our year-to-date gold production of 3.6 million ounces keeps Barrick on track to achieve our guidance of between 4.6 and 5.0 million ounces for the year,” he said.

Of the group’s capital projects for the assets we operate, only Veladero’s cross-Andean powerline and phase 6 expansion were stalled as a result of Argentina's Covid-19 response and further complicated by the onset of winter, with these projects now restarted. The construction of the third shaft at Turquoise Ridge, the twin declines at Goldrush and the underground mine at Gounkoto, as well as Hemlo’s transition to contractor underground mining, the process plant and tailings expansion plan at Pueblo Viejo, the commissioning of the group’s first solar power plant at Loulo and the resumption of underground mining at Bulyanhulu were not interrupted.

In October, Twiga Minerals Corporation, the groundbreaking joint venture between Barrick and the government of Tanzania, paid a maiden dividend of $250 million. Bristow said the revived Tanzanian mines, North Mara and Bulyanhulu in combination, had the potential to become Barrick’s seventh Tier One asset. A Tier One mine is defined as one that can produce more than 500,000 ounces of gold annually for at least 10 years in the lower half of the industry’s cost curve.

Subsequent to the third quarter, Barrick and the government of Papua New Guinea announced that they had agreed in principle on the formation of a new partnership to operate the Porgera mine that is currently on care and maintenance. Under the conceptual agreement, which is still to be finalized, Barrick Niugini Limited will remain the operator, the government will acquire a major share of the equity, and the two sides will agree on a equitable sharing of economic benefits.

Bristow said Barrick’s restructuring and portfolio rationalization had made it a more streamlined business with a much improved exploration strategy, particularly in its Latin American region, which should uncover new business opportunities. In the meantime, exploration around its Tier One assets continued to deliver organic growth and the company was expecting to grow mineral resources at most of its key assets.

“Barrick’s consistently strong performance since the merger has more than validated our belief that a combination of the best assets with the best people would deliver the best returns. It also shows that a business flourishes when it is driven by a clear strategy and not by the whims of the market,” Bristow said.

Key Performance Indicators
•Another solid quarter positions Barrick to deliver on annual production guidance
•Higher gold prices drive strong cash flow and increased royalty costs
•Operating cash flow of $1.9 billion and record free cash flow 1 of more than $1.3 billion
•Debt net of cash reduced by 71% to $0.4 billion with no significant maturities until 2033
•Strong operating performance across three quarters highlights asset quality
•Agile organizational structure continues to minimize the impact of Covid-19
•Consistent delivery from copper operations with costs tracking towards low end of guidance range
•Net earnings per share of 50 cents; adjusted net earnings per share 2 up 78% to 41 cents for the quarter
•Twiga partnership in Tanzania pays maiden dividend with all stockpiled concentrate sold
•Continued improvement in safety across the group year-on-year for both Lost Time and Total Injury Frequency rates
•Capital project teams remobilized in Argentina while all other capital projects remain on track
•Focus on exploration and organic growth highlights upside potential across Tier One 11 portfolio
•Significant stratiform mineralization connects Goldrush to Fourmile
•Ongoing portfolio rationalization converts closure properties to value opportunities
•Barrick declares $0.09 quarterly dividend per share

Financial and Operating Highlights
Financial Results Q3 2020 Q2 2020 Q3 2019
Realized gold price 3,4
($ per ounce) 1,926 1,725 1,476
Net earnings 5
($ millions) 882 357 2,277
Adjusted net earnings 2
($ millions) 726 415 264
Net cash provided by operating activities
($ millions) 1,859 1,031 1,004
Free cash flow 1
($ millions) 1,311 522 502
Net earnings per share
($) 0.50 0.20 1.30
Adjusted net earnings per share 2
($) 0.41 0.23 0.15
Attributable capital expenditures 6
($ millions) 436 402 397
Operating Results
Gold Q3 2020 Q2 2020 Q3 2019
Production 4
(000s of ounces) 1,155 1,149 1,306
Cost of sales (Barrick's share) 4,7
($ per ounce) 1,065 1,075 1,065
Total cash costs 4,8
($ per ounce) 696 716 710
All-in sustaining costs 4,8
($ per ounce) 966 1,031 984
Copper Production 9
(millions of pounds) 103 120 112
Cost of sales (Barrick's share) 9,10
($ per pound) 1.97 2.08 2.00
C1 cash costs 9,21
($ per pound) 1.45 1.55 1.62
All-in sustaining costs 9,21
($ per pound) 2.31 2.15 2.58

Q3 2020 Results Presentation
Webinar and Conference Call

President and CEO Mark Bristow will host a virtual presentation on the results today at 11:00 EST/16:00 UTC, with an interactive webinar linked to a conference call. Participants will be able to ask questions.

Go to the webinar
US and Canada (toll-free) 1 800 319 4610
UK (toll-free) 0808 101 2791
International (toll) +1 416 915 3239

The Q3 2020 presentation materials will be available on Barrick’s website at www.barrick.com and the webinar will remain on the website for later viewing.

Barrick Declares Increased Dividend

Barrick’s Board of Directors has declared a dividend for the third quarter of 2020 of $0.09 per share, a 12.5% increase on the previous quarter’s dividend, payable on December 15, 2020, to shareholders of record at the close of business on November 30, 2020. 12

Senior executive vice-president and chief financial officer Graham Shuttleworth said that this represents the third increase in the quarterly dividend in the past year and that Barrick’s quarterly dividend has tripled since the announcement of the Barrick-Randgold merger in September 2018, reflecting Barrick’s continued strong financial performance.

“The Board believes that the current dividend increase is sustainable and is reflective of the ongoing robust performance of our operations and continued improvement in the strength of our balance sheet, with total liquidity of $7.7 billion, including a cash balance of $4.7 billion, and a debt net of cash position of just $0.4 billion as of the end of the third quarter, as well as no material debt repayments due before 2033,” said Shuttleworth.

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