LONDON – Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) remains on track to achieve its 2022 production guidance despite some short-term operational challenges and rising input costs, president and chief executive Mark Bristow said today.
Presenting the company’s third-quarter results, Bristow said a steady performance had paved the way for a stronger Q4, driven by access to higher grades at Nevada Gold Mines (NGM). Its exploration drive continues to build momentum and Barrick is set once again to grow its reserves net of depletion this year.
Operating cash flow for the quarter was $758 million and was supplemented by the sale of non-core royalty assets. The robust balance sheet supported a $0.10 per share base dividend plus a $0.05 per share performance dividend for a total of $0.15 per share for the quarter. Under the $1 billion share buyback program, $322 million1 of shares have been repurchased to date, or approximately 1% of Barrick’s issued and outstanding shares at the time the program was announced.
“Barrick’s core strategy is one of long-term value creation and our focus remains firmly on this goal. We continue to maintain a strong balance sheet and to develop our wealth of organic growth projects. We also keep a sharp lookout for M&A opportunities, but those that could pass our strict investment filters are few and far between,” Bristow said.
“Sustainability is the cornerstone of our business, as it has been for the past 20 years. We have adopted a holistic and integrated approach to this critical issue, and are not only prioritizing the environment portion of ESG metrics. This is more attuned to the ethical and developmental needs of many of our host countries, and is already delivering results,” Bristow said.
Highlights of the quarter include the completion of the public comment phase of NGM’s Goldrush project and continuing progress with the Pueblo Viejo expansion project, designed to extend the life of the mine beyond 2040 at an annual production rate in excess of 800,000 ounces of gold (100% basis).14 The definitive agreements on the Reko Diq copper-gold project in Pakistan have been finalized and the process now moves onto its legalization and closing stage, with potential production from 2027/2028.
Barrick continues to build its copper portfolio with strong performances from Jabal Sayid in Saudi Arabia and Lumwana in Zambia, where ongoing exploration is pointing to the potential for a superpit which could extend the mine’s life to 2060.
At NGM, the North Leeville target has reported a maiden inferred resource of 700,000 ounces (100% basis as of December 31, 2021)18 and is set for further growth. Bristow says Barrick is looking at other opportunities in Nevada and elsewhere in North America. In Africa, key structures in the Loulo district are demonstrating the potential for further discoveries and in the Democratic Republic of Congo, Kibali’s prolific KCD structure continues to deliver growth.
“Barrick is successfully executing its strategy to create the world’s most valued gold and copper mining company through the performance of its peerless asset portfolio and a pipeline of high-quality organic growth prospects. This is evident in its industry-leading and sustainable shareholder returns, delivered in a disciplined dividend framework,” Bristow said.
Financial and Operating Highlights
Financial Results Q3 2022 Q2 2022 Q3 2021
Realized gold price5,6 ($ per ounce) 1,722 1,861 1,771
Net earnings ($ millions) 241 488 347
Adjusted net earnings3 ($ millions) 224 419 419
Net cash provided by operating activities ($ millions) 758 924 1,050
Free cash flow7 ($ millions) (34 169 481
Net earnings per share ($) 0.14 0.27 0.20
Adjusted net earnings per share3 ($) 0.13 0.24 0.24
Attributable capital expenditures8,9 ($ millions) 609 587 456
Operating Results Q3 2022 Q2 2022 Q3 2021
Gold
Production6 (000s of ounces) 988 1,043 1,092
Cost of sales (Barrick's share)6,10 ($ per ounce) 1,226 1,216 1,122
Total cash costs6,11 ($ per ounce) 891 855 739
All-in sustaining costs6,11 ($ per ounce) 1,269 1,212 1,034
Copper
Production6 (millions of pounds) 123 120 100
Cost of sales (Barrick's share)6,10 ($ per pound) 2.30 2.11 2.57
C1 cash costs6,12 ($ per pound) 1.86 1.70 1.85
All-in sustaining costs6,12 ($ per pound) 3.13 2.87 2.60
Key Performance Indicators
Best Assets
Steady Q3 performance with grade uplift in Q4 to drive delivery of 2022 gold production targets
Strong production performance at Lumwana and Jabal Sayid has copper trending at midpoint of guidance
Another milestone reached at Goldrush with conclusion of draft Environmental Impact Statement public comment period
New exploration management team builds momentum with strong results from a range of exciting targets across portfolio
On track to grow reserves net of depletion by year end
Leader in Sustainability
Renewed focus on Visible Felt Leadership shows improvement in safety at NGM
All NGM sites retained ISO 14001 and ISO 45001 accreditation during the quarter
Zero Class 1 or high significance environmental incidents13
Progress against Global Industry Standard on Tailings Management and against self-assessment plans completed for all ‘very high’ and ‘extreme’ consequence classifications
Pueblo Viejo new tailings storage facility Environmental and Social Impact Assessment (ESIA) completed to the Dominican Government’s Terms of Reference
Delivering Value
Operating cash flow of $758 million plus further value capture from sale of royalty portfolio
Net earnings per share of $0.14 and adjusted net earnings per share3 of $0.13 for the quarter
Net cash of $145 million2 results in a $0.15 per share dividend for Q3 2022, inclusive of $0.05 per share performance dividend
A further 9 million shares repurchased under buyback program (~$141 million) in Q3 2022 bringing the total year-to-date to $322 million4
Q3 2022 Results Presentation
Webinar and Conference Call
President and CEO Mark Bristow will host a live presentation of 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 Q3 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.
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https://www.barrick.com/English/news/news-details/2022/q3-2022-results/default.aspx |
