TORONTO — A stronger Q2 performance across the portfolio has kept Barrick on course to achieve its annual gold and copper production guidance while continuing to progress its key growth projects.
Gold production for the quarter was higher than Q1 at 1.04 million ounces — driven mainly by Carlin and Turquoise Ridge in Nevada, Veladero in Argentina, and Bulyanhulu and North Mara in Tanzania — and is expected to grow further in the second half of the year. Copper production came to 120 million pounds.
Operating cash flow was $924 million and free cash flow1 was $169 million for the quarter. Net earnings per share were $0.27 and adjusted net earnings per share2 were $0.24. A dividend of $0.20 per share was declared for the quarter on the back of the strong operating performance and net cash of $636 million.3 During the quarter, Barrick repurchased $182 million in shares under the $1 billion share buy-back scheme introduced earlier this year. It also repatriated the balance of Kibali’s surplus cash from the Democratic Republic of Congo.
In the Dominican Republic, the Pueblo Viejo expansion project advanced with the commencement of the public consultation process and the selection of a preferred site for the new tailings storage facility, subject to the completion of an environmental and social impact assessment. The massive project has the potential to extend the mine’s life to 2040 and beyond with an estimated minimum average annual production of 800,000 ounces.12
In Nevada, the public review period of the Goldrush project has started with the record of decision expected in the first half of 2023, when the production timetable will be confirmed. The definitive agreements underlying the framework agreement between Barrick and the governments of Pakistan and Balochistan on the Reko Diq project are being finalized. Once this process has been completed and the necessary legalization steps have been taken, Barrick will update its feasibility study on what is one of world’s largest undeveloped copper-gold deposits, with first production expected in 2027/2028.
Barrick is continuing to expand its global exploration footprint with a strengthened team. In North America the search has extended from Nevada to active projects in Canada. The intensified exploration drive in Latin America led to an entry into the Guiana Shield, and in Africa & the Middle East, new projects have been initiated in Zambia, Tanzania and Egypt. A new Asia Pacific team is making progress at Reko Diq, as well as Japan, while also looking for fresh opportunities elsewhere in this region.
Reviewing the quarter, president and chief executive Mark Bristow said the critical scrutiny of ESG and sustainability disclosures was intensifying in a climate of skepticism about so-called greenwashing. Against this background, Barrick’s annual Sustainability Scorecard, an industry first, continues to report the group’s performance transparently and objectively against a wide range of standard metrics.
“We’ve taken the leadership in integrating the various aspects of ESG and managing these complex issues in a measured and holistic manner,” he said.
“There are challenging times ahead, but Barrick faces them with strong and agile leadership, a robust balance sheet, solid Life of Mine plans, a reliable cash flow and a strategy focused on sustainability and value creation.”
Financial and Operating Highlights
Financial Results Q2 2022 Q1 2022 Q2 2021
Realized gold price4,5
($ per ounce) 1,861 1,876 1,820
Net earnings
($ millions) 488 438 411
Adjusted net earnings2
($ millions) 419 463 513
Net cash provided by operating activities
($ millions) 924 1,004 639
Free cash flow1
($ millions) 169 393 (19 )
Net earnings per share
($) 0.27 0.25 0.23
Adjusted net earnings per share2
($) 0.24 0.26 0.29
Attributable capital expenditures6,7
($ millions) 587 478 518
Operating Results Q2 2022 Q1 2022 Q2 2021
Gold
Production5
(000s of ounces) 1,043 990 1,041
Cost of sales (Barrick's share)5,8
($ per ounce) 1,216 1,190 1,107
Total cash costs5,9
($ per ounce) 855 832 729
All-in sustaining costs5,9
($ per ounce) 1,212 1,164 1,087
Copper
Production5
(millions of pounds) 120 101 96
Cost of sales (Barrick's share)5,8
($ per pound) 2.11 2.21 2.43
C1 cash costs5,10
($ per pound) 1.70 1.81 1.83
All-in sustaining costs5,10
($ per pound) 2.87 2.85 2.74
Key Performance Indicators
Best Assets
Stronger Q2 performance across the portfolio keeps Barrick on track to achieve 2022 production targets
Goldrush Notice of Availability published in Federal Register starting the public comment period
Significant progress made with the Pueblo Viejo expansion project and additional tailings storage facility
Copper portfolio delivers with growing prospectivity
Continued focus on brownfields and greenfields exploration, driven by energized new leadership, delivers results
Leader in Sustainability
Launched sustainability-linked credit facility
Progress made with newly developed Scope 3 emissions reduction roadmap
North Mara received award for the best community health outreach program in Tanzania
Public hearings completed for Pueblo Viejo’s new tailings storage facility
Year-on-year improvement in water reuse and recycling
Seamless leadership succession underpins Barrick’s management bench strength
Delivering Value
Operating cash flow of $924 million and free cash flow1 of $169 million for the quarter
Net earnings per share of $0.27 and adjusted net earnings per share2 of $0.24 for the quarter
Remaining surplus cash balance repatriated from Kibali
Net cash of $636 million3 supports a $0.20 per share dividend for Q2 2022
~$182 million of shares repurchased under our $1 billion buy-back program11
Q2 2022 Results Presentation
Webinar and Conference Call
President and CEO Mark Bristow will host a virtual presentation on the results today at 11:00 EDT, with an interactive webinar linked to a conference call. Participants will be able to ask questions.
Go to the webinar
US and Canada (toll-free), 1 800 319 4610
UK (toll-free), 0808 101 2791
International (toll), +1 416 915 3239
The Q2 2022 presentation materials will be available on Barrick’s website at www.barrick.com and the webinar will remain on the website for later viewing.
Barrick Maintains Dividend of $0.20 Per Share for Q2
Press Release
All amounts expressed in US dollars
TORONTO – Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today announced the declaration of a dividend of $0.20 per share in respect of performance for the second quarter of 2022. The dividend, which is unchanged from Q1, is consistent with the Company’s Performance Dividend Policy announced at the start of the year.
The Q2 2022 dividend will be paid on September 15, 2022 to shareholders of record at the close of business on August 31, 2022.1
“On the back of our strong operating performance, we are once again able to provide a leading dividend yield to our shareholders, whilst still maintaining a strong balance sheet,” says senior executive vice-president and chief financial officer Graham Shuttleworth. “We believe this continues to show the benefit of the dividend policy that we announced in February 2022, including the guidance it provides to our shareholders on future dividend streams.”
|
