First Quarter 2023 Results
All amounts expressed in US dollars
TORONTO — The completion of major processing plant maintenance at Nevada Gold Mines, the conversion of the Goldstrike autoclave to a carbon-in-leach process, a much-improved performance from Turquoise Ridge and the steady ramp-up of throughput at Pueblo Viejo’s expanded plant will boost production in the second half of the year and keep Barrick on track to achieve its 2023 guidance, the company said today.
Reporting on the results for the first quarter, president and chief executive Mark Bristow said production, while lower than Q4 2022, was on plan, and free cash flow1 had still increased, demonstrating the value of Barrick’s Tier One2 asset portfolio. Net earnings per share for the quarter were $0.07, while adjusted net earnings per share3 were $0.14, and the quarterly dividend was maintained at $0.10 per share.
“At NGM, we have introduced a flatter and more responsive organizational structure and instilled the Barrick style of leadership in what is still a relatively new management team. Through this process, we have passed a major milestone in our journey to unlock Nevada’s full potential and strengthen its 15-year business plan,” he said.
“In the Dominican Republic, construction of Pueblo Viejo’s expanded process plant was 93% complete at the end of Q1 and we’re ramping up to full capacity by July. Currently our biggest growth project, it has been designed to extend the mine’s Tier One life to beyond 2040 at an expected average annual production rate of 800,000 ounces4 of gold.”
The development of another major project, Reko Diq in Pakistan, is also advancing steadily with continued progress on the updating of the feasibility study and the establishment of a Community Development Committee as well as a school. Scheduled to go into production in 2028, Reko Diq hosts one of the world’s largest undeveloped copper-gold deposits.
The Africa and Middle East region finished Q1 with gold production ahead of plan, setting the foundation for another year of delivery. At the Loulo-Gounkoto complex in Mali, the first high-grade stope at the new Gounkoto underground mine was successfully mined ahead of schedule. At North Mara in Tanzania, mining has started at the new Gena open pit. During the quarter, Barrick committed $30 million to a new education initiative in partnership with the Tanzanian government.
“While we continue to build our peerless asset base, we are also casting our net wider and stepping up the hunt for fresh opportunities. During the past quarter, we have opened up new frontiers and secured multiple interesting prospects in Canada, the USA, Peru, the Dominican Republic, Saudi Arabia and Tanzania,” Bristow said.
“We’re also maintaining our carefully planned transition to cleaner energy. In Nevada, work has started on the TS Power Plant’s natural gas co-fire project as well as the TS Solar project. At Loulo, work is under way on the expansion of its solar plant and the addition of a battery storage system and at Kibali in the Democratic Republic of Congo (“DRC”), a battery back-up system for the three hydropower stations that supply the bulk of its energy is being planned.”
Bristow said Barrick’s consistent reserve replacement and resource growth has allowed it to underpin each operation and project with a fully planned 10+ year production profile. This secures the generation of a robust free cash flow that consistently delivers strong returns to shareholders and enables Barrick to drive organic growth by investing in the development of its world-class assets.
Financial and Operating Highlights
Financial Results Q1 2023 Q4 2022 Q1 2022
Realized gold price5,6
($ per ounce) 1,902 1,728 1,876
($ millions) 120 (735 ) 438
Adjusted net earnings3
($ millions) 247 220 463
Net cash provided by operating activities
($ millions) 776 795 1,004
Free cash flow1
($ millions) 88 (96 ) 393
Net earnings per share
($) 0.07 (0.42 ) 0.25
Adjusted net earnings per share3
($) 0.14 0.13 0.26
Attributable capital expenditures7,8
($ millions) 526 743 478
Operating Results Q1 2023 Q4 2022 Q1 2022
(000s of ounces) 952 1,120 990
Cost of sales5,9
($ per ounce) 1,378 1,324 1,190
Total cash costs5,10
($ per ounce) 986 868 832
All-in sustaining costs5,10
($ per ounce) 1,370 1,242 1,164
(millions of pounds) 88 96 101
Cost of sales5,9
($ per pound) 3.22 3.19 2.21
C1 cash costs5,11
($ per pound) 2.71 2.25 1.81
All-in sustaining costs5,11
($ per pound) 3.40 3.98 2.85
Key Performance Indicators
Q1 production in line with plan after planned maintenance at Nevada Gold Mines and start of plant commissioning at Pueblo Viejo
Pueblo Viejo and Nevada Gold Mines ramp up to drive a stronger second half in line with guidance
Robust performance from Turquoise Ridge driving year-on-year production increase
Pueblo Viejo’s expansion project continues to advance: SAG mill turning and first ore through the crusher as ramp-up starts
Gounkoto underground delivers first production stopes ahead of schedule
Resin-in-leach to carbon-in-leach conversion at the Goldstrike autoclave completed on time and on budget improving operational flexibility
Exploration team secures new projects in Canada, USA, Peru, Dominican Republic, Saudi Arabia, Tanzania
Leader in Sustainability
New global safety program ‘Journey to Zero’ launched
2022 Sustainability Report highlights Barrick’s contribution to achievement of United Nations Sustainable Development Goals
Reko Diq constitutes first Community Development Committee and opens Humai school
Barrick leads nationwide education initiative in Tanzania with $30 million commitment
Pueblo Viejo receives highest gender equality certification in Dominican Republic
Free cash flow1 increased despite a lower production quarter
Net earnings per share of $0.07 and adjusted net earnings per share3 of $0.14 for the quarter
$0.10 per share dividend declared
Q1 2023 Results Presentation
Webinar and Conference Call
Mark Bristow will host a live presentation of the results today at 11:00 AM ET, 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 Q1 2023 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 Q1 Dividend
Barrick today announced the declaration of a dividend of $0.10 per share for the first quarter of 2023.
The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of 2022 and will be paid on June 15, 2023 to shareholders of record at the close of business on May 31, 2023.
“Through the maintenance of a robust balance sheet, we are able to continue to provide a strong base dividend to our shareholders, with our Performance Dividend Policy providing shareholders with the potential for additional upside going forward,” said senior