Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today posted its
third strong quarter in a row and said it was on track to deliver
production at the higher end and costs at the lower end of its
guidance ranges for the year.
Q3 results show net earnings per share of $1.30,
adjusted net earnings per share1 of $0.15, up 67% on Q2 on the back
of a higher gold price, and debt net of cash down 14% at $3.2
billion after payment of the dividend. The quarterly dividend
was increased by 25% to $0.05 per share on the back of the
robust operational performance and the growth in cashflows.
The Nevada Gold Mines joint venture delivered a
solid performance against plan in what was its inaugural quarter of
operation. There was an improved performance at a lower cost from
Pueblo Viejo in the Dominican Republic, where its plant expansion
pre-feasibility study is heading for completion by the end of this
year. Loulo-Gounkoto in Mali and Porgera in Papua New Guinea also
posted robust results. Continued efficiency improvements increased
the group’s copper production by 15% quarter on quarter.
Following the Acacia buy-out, Barrick and the
Tanzanian government have agreed in principle on a settlement of
that company’s tax and fiscal issues. A dedicated team is
currently working on evaluating and stabilizing the North Mara and
Bulyanhulu mines.
2019 Q3 Highlights
- Strong Q3 points to higher end of production and lower end of
cost guidance
- Debt net of cash at $3.2 billion after payment of dividend;
down 14% from Q2
- Nevada Gold Mines JV delivers on production plan in first
quarter of operation
- Quarterly dividend increased by 25% to $0.05 per share as cash
balance grows
Key Performance
Indicators
Financial and
Operating Highlights
Financial Results |
Q3 2019 |
|
Q2 2019 |
|
Q3 2018 |
|
Realized gold price2,3 ($ per ounce) |
1,476 |
|
1,317 |
|
1,216 |
|
Net earnings (loss) ($ millions) |
2,277 |
|
194 |
|
(412 |
) |
Adjusted net earnings1 ($ millions) |
264 |
|
154 |
|
89 |
|
Net cash provided by operating activities ($ millions) |
1,004 |
|
434 |
|
706 |
|
Free cash flow4 ($ millions) |
502 |
|
55 |
|
319 |
|
Net earnings (loss) per share ($) |
1.30 |
|
0.11 |
|
(0.35 |
) |
Adjusted net earnings per share1 ($) |
0.15 |
|
0.09 |
|
0.08 |
|
Total attributable
capital expenditures5 ($ millions) |
397 |
|
361 |
|
372 |
|
Operating Results |
Q3 2019 |
|
Q2 2019 |
|
Q3 2018 |
|
Gold |
|
|
|
Production (000s of ounces) |
1,306 |
|
1,353 |
|
1,149 |
|
Cost of sales6 (Barrick's share) ($ per ounce) |
1,065 |
|
964 |
|
850 |
|
Total cash costs7 ($ per ounce) |
710 |
|
651 |
|
587 |
|
All-in sustaining costs7 ($ per ounce) |
984 |
|
869 |
|
785 |
|
Copper |
|
|
|
Production (millions of pounds) |
112 |
|
97 |
|
106 |
|
Cost of sales6 (Barrick's share) ($ per pound) |
2.00 |
|
2.04 |
|
2.18 |
|
C1 cash costs8 ($ per pound) |
1.62 |
|
1.59 |
|
1.94 |
|
All-in sustaining
costs8 ($ per pound) |
2.58 |
|
2.28 |
|
2.71 |
|
- Strong Q3 points to higher end of production and lower end of
cost guidance for the year
- Debt net of cash at $3.2 billion after payment of dividend,
down 14% from Q2
- Adjusted net earnings per share1 of $0.15 up 67% on Q2
- Continued efficiency improvements lead to 15% increase in
copper production quarter on quarter
- Nevada Gold Mines JV delivers on production plan in first
quarter of operation
- Improved performance at lower cost from Pueblo Viejo as
expansion study progresses
- African and LatAm/APac operations remain on track with strong
performances from Loulo-Gounkoto and Porgera
- Refocused mineral resource management and exploration delivers
new discovery at Fourmile and highlights geological upside across
the group
- Latest drilling indicates life of mine extensions at Porgera
and Veladero
- Improved position in Dow Jones Sustainability Index as Barrick
continues to roll out new sustainability initiatives
- New focus on safety and environment delivers another quarter of
improvements
- Quarterly dividend increased by 25% to $0.05 per share as cash
balance grows
Barrick president and chief executive Mark
Bristow said lean, agile management teams had built on a return to
the basics of mineral resource management to deliver performance
improvements across the group, as well as a range of new
opportunities. These included a major new discovery at
Fourmile in Nevada, Life of Mine extensions at Porgera and
Veladero, and the confirmation of a wide-ranging geological
upside.
“We have prepared detailed five-year plans for
each region which we are sharing with the market this
quarter. These will be followed by a 10-year production plan,
scheduled for publication with our next annual report. The
objective is to make capital allocation, budgeting and forecasting
more dynamic. This, combined with the roll-out of our new
information management systems, will enable us to use real-time
data availability for real-time decision-making,” he said.
Barrick has also moved the ownership of orebody
modelling, reserve and resource estimation and mine planning to the
operations, with oversight from the corporate executive, in line
with its policy of effective on-site management and a flat
organizational structure.
Bristow said the planned disposal of non-core
assets was progressing as scheduled and was expected to realize
$1.5 billion or more by the end of next year.
“These are exciting times with lots of
opportunities to deliver real value for our owners and
stakeholders, and Barrick is strongly placed to take full advantage
of these,” he said.
Conference Call and Webcast
Please join us for a conference call and webcast
today at 9:00 ET/14:00 GMT to discuss the results.
US and Canada, 1-800-319-4610UK, 0808 101
2791International, +1 416 915-3239Webcast
The event will be available for replay online or
by telephone at 1-855-669-9658 (US and Canada) and +1 604 674-8052
(international), access code 3391.
BARRICK ANNOUNCES INCREASED DIVIDEND FOR
Q3 2019
Barrick Gold Corporation today announced that
its Board of Directors has declared a dividend for the third
quarter of 2019 of $0.05 per share, a 25% increase on the previous
quarter’s dividend, payable on December 16, 2019 to
shareholders of record at the close of business on November 29,
2019.9
Senior Executive Vice-President and Chief
Financial Officer Graham Shuttleworth said Barrick’s business
continued to perform well and the increased dividend reflected its
strong operating performance and growth in cashflows and is
consistent with the Company’s stated financial and operating
objectives.
The Barrick value chain
GEOCENTRIC FOCUS DELIVERS
RESULTS ACROSS GROUP
Geology is literally the bedrock on
which the mining industry is built. The quality and size of
the orebodies are not only its foundation but its revenue driver,
which is why the geosciences are the key component of Barrick’s
business model.
Effective exploration and responsible orebody
stewardship were central to the success of the group’s legacy
companies - the pre-merger Barrick and Randgold - but Barrick’s
geocentric focus faded over the years. The merger presented
the opportunity to reinvigorate and strengthen exploration and
mineral resource management, and reposition them as the starting
point for optimal planning and the first link in the value chain,
explains Mark Bristow, president and CEO of Barrick.
Essentially, says mineral resource management
and evaluation executive Rod Quick, the geosciences - geotechnical
analysis, geometallurgy and geohydrology - have been integrated,
and mine designs and feasibility studies are being revised
accordingly.
“Since the start of the year, we’ve strengthened
the teams, appointed mineral resource managers at all sites,
improved our geological knowledge and models, and started drilling
these models. We’ve also re-introduced focused exploration
programs for Barrick’s next Tier One10 asset,” he says.
“Already significant new mineral potential has
been identified across our portfolio of operations.
Exploration has delivered a new discovery close to Fourmile and
Goldrush in Nevada, and the latest drilling and modelling results
point to potential Life of Mine extensions at Veladero, Pueblo
Viejo, Porgera, Hemlo, Loulo-Gounkoto and Kibali. At Carlin,
district-scale geological compilation and integration have yielded
multiple high-quality targets, and drilling is already
underway.”
Executive vice president, exploration and
growth, Rob Krcmarov says in addition to maximizing its existing
assets, Barrick is already looking beyond the 10-year horizon in
its search for new opportunities, based on the group’s broad
geological knowledge across multiple world-class destinations.
“Mining is a long-term game, and we’re hunting
Tier One10 assets that will deliver value at the top as well as the
bottom of the inevitable cycles and will buffer Barrick against any
market volatility. That means we want orebodies with quality
as well as size,” Krcmarov says.
The Barrick value chain
POSITIVE ENERGY
Power is not only the mining industry's
biggest cost driver; its generation also has a significant impact
on the environment.
That is why Barrick’s energy strategy is
designed not only to deliver a reliable supply of affordable power
to its mines, but also to minimize the group’s carbon footprint,
says metallurgy, engineering and capital projects executive John
Steele.
“We’ve moved thermal power generation at the
mines that need it from diesel and Heavy Fuel Oil (HFO) to natural
gas wherever possible. We’re also extending regional power
grids to enable our mines to link up with national systems, and
introducing solar power where this can make a difference to our
grid supply,” he says.
The development of the Tier One10 Kibali mine in
the Democratic Republic of Congo included the construction of three
run of the river hydropower stations. Tongon in Côte d’Ivoire
is supplied with a mix of gas-generated thermal power and
hydropower by the country’s national grid. Porgera in Papua
New Guinea currently uses gas-fired thermal generation but the
potential to introduce a hydropower component is being
evaluated. Nevada Gold Mines can be fed by its own gas and
coal fired thermal stations but typically draws power from the
Western US grid. To further improve emissions in Nevada, coal
to gas conversion is being investigated. Pueblo Viejo in the
Dominican Republic supplies the mine and the local grid with
thermal power and recently converted from HFO to natural gas to
reduce cost and carbon emission. Veladero in Argentina is
being connected to grid power from neighboring Chile to eliminate
its reliance on diesel-fired thermal generation. Solar power
is being added to the supply mix at Loulo in Mali to reduce its
diesel consumption and is also being considered in Nevada to offset
thermal and grid power consumption.
“Responsible power generation is good business
because it cuts costs. And because it reduces Barrick’s
carbon footprint, it is also the right thing to do for our host
countries and communities,” says Steele.
The Barrick value chain
CONVERTING WORLD-CLASS
OREBODIES INTO HIGH-MARGIN
BUSINESSES
The mineral resource value-creation chain starts
with the discovery of a world-class asset and culminates in its
optimally efficient metallurgical extraction. Barrick has
many of the gold mining industry’s Tier One10 assets and, to make
the most of these, it uses a complete range of processing
technologies, ranging from simple heap leaching to complex
refractory ore processing in autoclaves and roasters.
- Barrick’s Nevada roasters are the world leaders in complex
double refractory ore processing.
- The Nevada autoclaves process high TCM refractory sulphides
with Calcium Thiosulphate leaching and Resin-in-Leach
recovery.
- In Nevada, the Dominican Republic and Papua New Guinea,
pressure oxidation in autoclaves is used to process single
refractory sulphides.
- Barrick is at the forefront of ultra-fine grinding of partially
refractory sulphides to enhance the extraction of gold at its
African operations.
- It also runs simple milling circuits; sulphide flotation and
heap leach operations.
“We’re always looking for ways to improve our
efficiencies and take our processing operations to the next
level. The challenge is not only to stay at the forefront of
technological developments but to ensure that our processing
facilities are fully integrated with our environmental and
sustainability initiatives,” says Barrick president and chief
executive Mark Bristow.
Current projects include a new flotation system
to support the proposed expansion of Pueblo Viejo’s operations; a
modification of the Mill 6 roaster at Carlin to raise throughput
and improve productivity; and pushing the grind/recovery/throughput
trade-off at Twin Creeks in Nevada to deliver a lower cost per
ounce of production.
SUSTAINABILITY: A VISION BECOMES A
REALITY
One of the new executive team’s first acts after
the merger was to define exactly what its sustainability
initiatives should achieve. It set these aims out
clearly:
- Barrick’s mines should create long-term value for all its
stakeholders, including investors, host countries and communities,
and employees.
- Environmental and social considerations should be embedded in
all business decisions to ensure that high and rising expectations
are met.
- Barrick must build deep partnerships with all stakeholders and
act on their concerns.
“Over the past nine months we have been putting
these principles into action and our efforts are paying dividends,”
says group sustainability executive Grant Beringer.
“We are particularly proud that Barrick has been
included in the Dow Jones Sustainability World Index for the
twelfth consecutive year. The Index evaluates more than 2,500
companies and uses rigorous criteria to identify the top 10 percent
performers. We’ve also been ranked as a leader for our
sustainability disclosure by ISS ESG, a governance research
firm.
Beringer says that while recognition is a sign
that Barrick is on the right track, it is the actions that the
teams at the mines take that are critical to the group’s continued
success in turning its sustainability vision into a tangible
reality.
SUSTAINABILITY IN ACTION: CASE
STUDIES
Developing agricultural entrepreneurs in
Mali and ZambiaLoulo has established an agribusiness and
has trained 48 local farmers in setting up a business, production
and marketing. Thirty farms have been created with credit
provided by a microfinance firm. They have also been provided
with water and equipment. To date, the farms have generated
production of 30 tonnes of food and income of $39,000.
At Barrick’s Lumwana mine in Zambia, women from the local community
are being trained in vegetable and fruit production, and have been
provided with a borehole, a greenhouse and storage sheds, among
other items.
Bringing back quality healthcare to the
Porgera ValleyThe Paiam hospital in Papua New Guinea has
been re-opened after three years thanks to funding assistance
provided by the Porgera Joint Venture (PJV) for its refurbishment
and the supply and installation of new equipment. PJV also
project-managed the process to facilitate the opening.
Throughout its life, Porgera Mine has supported the regional health
sector and has provided the funding and infrastructure to develop
health services in Porgera and the Enga province.
A big win for Giant Nickel’s
reclamationBarrick has received the Jake McDonald Annual
Reclamation Award from the British Columbia Technical and Research
Committee for improvements it made to a reclaimed tailings facility
at the historic Giant Nickel mine, which closed in 1978. The
improvements took 18 months to complete and demonstrate the
company's commitment to the environment. They include a new
water management infrastructure which has improved the water
quality and fish habitat in the surrounding environment.
Rehabilitating El IndioLocated
4,000 meters above sea level in Chile’s Elqui Valley, the El Indio
gold mine ceased operations in 2002. As there were no
definitive regulations for mine closures in Chile at the time,
Barrick voluntarily submitted a plan in accordance with the highest
international standards. The plan provided for the
dismantling of works and facilities as well as the relocation of
employees. Today, more than 80% of the closure works have
been completed and last year the Chilean Safety Association
recognized Barrick for reaching 14 years without a Lost-Time Injury
at the site.
Support for local farmers in
ArgentinaVeladero initiated an agricultural project in
2017 in cooperation with the Ministry of Mining and Production,
local municipalities and private sector companies and
associations. It involves 45 local farmers who participate in
training and development programs aimed at increasing their
agricultural yield and extending their distribution network.
To increase production and capacity, two greenhouses and eight cold
storage chambers have been constructed. Since 2018 the
project has produced 400 tons of vegetables, sold for $95,000.
DEVELOPING A NEW GENERATION OF
LEADERS
Barrick is doubling down on its
investment in its human capital, with a particular focus on the
young people who will provide its future leaders, says president
and chief executive Mark Bristow.
“Many of our current executives are the product
of our university and vocational training bursaries and have been
with the legacy companies since completing their studies. Our West
and East African management teams are virtually all home-grown, as
are many of those in North and Latin America,” says Bristow.
“We hunt for emerging talent at the major
tertiary education institutions and we’re now extending that to the
school level, to ensure that we identify and recruit the best of
the best. We’re building Barrick into a model of what a
modern mining business should be, and our flexible, agile
management style requires the constant injection of fresh
blood.”
Human capital management should be an enabler to
the business. We develop our employees meaningfully through stretch
assignments and targeted programs that build essential skill
sets. We consistently review our talent capability critical
to drive business priorities across the regions and sites, says
human resources executive Darian Rich.
“Our Compass program is designed for early
career professionals in exploration/geology, mine engineering and
health and safety. It includes work rotations through various
aspects of a function or site operations combined with individual
mentoring and very specific technical and leadership development
plans over a two- to three-year period. We continue to offer
finance for non-finance professionals as a baseline for development
in leadership positions. Annually, the operational leadership
teams identify promising employees in whom to invest to strengthen
our talent bench-strength. Employee identification is linked
to career advancement and succession planning. They attend
business management and executive leadership development programs
offered by universities in Africa, Europe, the Western US and
Florida for convenient access from each region.”
APPRENTICESHIP PROGRAM SHAPES TECHNICAL
CAREERS
The Pueblo Viejo apprenticeship program has
proved to be a valuable tool in attracting and developing bright
young minds. Carried out every second year, the program
recruits people aged between 18 and 25 from the mine’s neighboring
communities and certifies them in a technical discipline through
both theoretical and practical training around the operation.
Three young women, all studying towards a career
in welding, excelled in the program at our Pueblo Viejo mine:
Daridalia Batista (19)“I never
imagined studying welding,” she says. “However, I soon fell
in love with it and it proves that young women are just as capable
at the craft as men.” She says she was concerned at the start
of her apprenticeship that she would be undermined as a woman in
the male-dominated working environment. “In reality, it has
been the complete opposite,” she says. “They respect us, care
for us and support us. We have a really good working
relationship.”
Cándida Reynosa (19)Candida
says her motivation to pursue a career in welding is because it
offers a promising future. She values the importance Barrick places
on safety precautions and says she can work with confidence without
worrying that something will happen to her. “We have all the
necessary protective equipment and training and the company’s motto
of returning home safe and sound every day really resonates with
me,” she says.
Darieli Sánchez (19)Darieli,
who describes herself as an adventurous and brave young woman,
really values Pueblo Viejo’s apprenticeship program. “The
fact that they give aspiring young people this opportunity to learn
an employable skill is rare in our country and one of the biggest
problems facing our youth. I am a very proud person and I’ve
felt nothing but pride since joining the program because it has
taught me that I can succeed as a woman in a male-dominated field,”
she says.
YOUNG EMPLOYEE SUCCESS
STORIES
Alexander Peña (34)Pueblo Viejo
Autoclave Maintenance SupervisorAlexander has been working for
Pueblo Viejo for more than eight years and holds the distinction of
reducing an aspect of the autoclave maintenance time from two days
to 15 hours. “We needed to make an internal repair of the
bricks that cover the autoclaves and our initial assessments
indicated that this would take 48 hours, which would greatly impact
downtime. I realized that we only needed to replace the
bricks in the affected area, reducing not only the required bricks
from 60 to eight but also saving us a substantial amount of time,”
he says.
Lauren Broncho (31)Nevada Gold
Mines Analytical Lab SupervisorLauren’s rapid rise through the
ranks of Barrick’s Nevadan gold mines is a testament to the
company’s long-standing partnership with the neighboring Native
American communities. An enrolled member in the Elko Band of
the TeMoak Tribe, Lauren was promoted to Analytical Lab Supervisor
in October this year. Previously she worked as a lab
technician, emergency response team member, trainer and relief
shifter and brings to her new position a solid background in safety
leadership.
INTERNS EARN FULL-TIME
EMPLOYMENT
Three times a year, Pueblo Viejo invites 30
final-year university students to participate in the mine’s
internship program. The objective is to give these students the
opportunity to put their theoretical knowledge into practical
application by working in different areas of the mine.
Two of these students outperformed over the
three-month duration of the program and have since been employed on
a full-time basis at the mine. They are:
Luis Daniel Rodríguez (24)“My
favorite subject at university was metallurgy and fortunately for
me it was in this area of the mine that I was able to showcase my
potential. Now I work for the mine doing condition monitoring
and non-destructive tests which I fully enjoy,” he says.
“Field experience is something that not all engineering students
get access to and I never thought that all the theories I learnt at
university could be applied so actively every day,” says Luis, who
studied electromechanical engineering.
Caroldania Díaz (23)“I will
always recommend to young people to grab an opportunity like this
with both hands because, on site, you always learn something
new. The internship program helped me grow out of my shell
and, because of that, I am now more empowered and confident to make
decisions,” Caroldania says. The geology engineering student adds
that the company’s safety ethic is what she admires most. “I
like the way they treat their people. They are always looking
after the safety of their workers,” she says.
KIBALI’S RISING STARS
Christelle Simuera Sifa (25)Lab
TechnicianChristelle joined Kibali in 2015 as a trainee and quickly
developed a reputation for high-quality work. Within six
months, she was assigned as a chemist at Kibali’s metallurgical
laboratory where she again excelled in her duties. Christelle
now works with the metallurgical accounting team and is described
by her colleagues as a value-adding member and a pleasure to be
around.
Robert Talaguma Asana (33)Lab
TechnicianDedicated to his work and admired for his
professionalism, Robert is one of the most qualified employees in
Kibali’s metallurgical laboratory. He joined the mine in 2016
as a trainee and was soon promoted to Lab Technician.
According to his colleagues, he always provides reliable results
and the data generated from his test work can be used with full
confidence to guide the process team.
Clara Kasongo Kakudji
(29)Supervisor EngineerClara, who is a qualified civil
engineer, oversees all the construction activities at Kibali
including road maintenance, housing projects and various other
community development initiatives. She is also in charge of
budgeting and accounting of all these developments and, despite
having only joined the mine in 2017, she is showing promising
potential to become a senior member of the engineering team.
THE LAUNCH OF TWIGA MINERALS HERALDS
PARTNERSHIP BETWEEN TANZANIAN GOVERNMENT AND BARRICK
The government of Tanzania (GoT) and
Barrick have reached an agreement to settle all disputes between
the GoT and the mining companies formerly operated by Acacia but
now managed by Barrick. The final agreements have been
submitted to the Tanzanian Attorney General for review and
legalization.
The terms of the agreement include the payment
of $300 million to settle all outstanding tax and other disputes;
the lifting of the concentrate export ban; the sharing of future
economic benefits from the mines on a 50/50 basis; and the
establishment of a unique, Africa-focused international dispute
resolution framework.
In conjunction with the finalization of the
agreement, a new operating company called Twiga Minerals
Corporation (Twiga) has been formed to manage the Bulyanhulu, North
Mara and Buzwagi mines. (Twiga is the Swahili word for
giraffe, Tanzania’s national symbol.) The GoT will acquire a
free carried shareholding of 16% in each of the mines and will
receive its half of the economic benefits from taxes, royalties,
clearing fees and participation in all cash distributions made by
the mines and Twiga. An annual true-up mechanism will ensure
the maintenance of the 50/50 split.
Speaking recently after a meeting with the
chairman of the Negotiating Committee of the Government of
Tanzania, Prof Palamagamba Kabudi, Barrick president and chief
executive Mark Bristow said the agreements introduced a new era of
productive partnership with the GoT and would ensure that Tanzania
and its people would share fully in the value created by the mines
they hosted. It also marked the end of the long impasse
between the GoT and Acacia which had led, among other things, to
the closure of North Mara and the freezing of export concentrate
from the two other operations. Barrick took over the
management of the mines after its buy-out of the Acacia minorities
last month. Since then it has negotiated the re-opening of
North Mara and is engaging with the mines’ host communities to
restore their social license.
“Rebuilding these operations after three years
of value destruction will require a lot of work, but the progress
we’ve already made will be greatly accelerated by this
agreement. Twiga, which will give the government full
visibility of and participation in operating decisions made for and
by the mines, represents our new partnership not only in spirit but
also in practice,” Bristow said.
He noted that Tanzanian nationals were already
being employed and trained to replace expatriate staff as had been
done very successfully at Barrick’s other African operations.
PARTNERSHIP TO CONTINUE
BUILDING MALI’S MINING INDUSTRY
The successful two-decade partnership between
the government of Mali and Randgold (now Barrick) has made the gold
mining industry one of the key drivers of the country’s economy,
says Barrick president and chief executive Mark Bristow.
Briefing local media on the Loulo-Gounkoto
complex’s current performance, Bristow said Barrick was committed
to further investment in Mali. It was currently developing a
new underground mine at Gounkoto, replenishing existing reserves
through brownfields exploration, prospecting for another
world-class discovery along the Mali/Senegal shear zone and
undertaking mapping and research in the south of the country.
He cautioned, however, that Mali’s mining
industry was facing many social and fiscal challenges.
Overcoming these to ensure that the sector could sustain its
contribution to the economy required closer cooperation between
government and industry in a spirit of transparency and
engagement.
Bristow noted that Barrick entered Mali through
Randgold’s discovery and development of Morila, which laid the
foundation for its mining industry as well as marking the first
true partnership between a host country and investors in West
Africa.
Since then, Barrick’s operations have paid
approximately $2.7 billion in taxes, royalties and dividends to the
state. Its mines currently contribute more than 40% of the
country’s total gold production. In line with its commitment
to creating value not only for its shareholders and the treasury
but to all the other stakeholders, it pioneered the concept of
building national capacity. Today all its mines in the
country are managed by all-Malian executive teams. In
addition, some of the key leaders in Barrick’s Africa and Middle
East region are the products of the group’s human capital
development programs in Mali.
Barrick also contributes to the economy through
its support for local businesses, to which it has paid
approximately $190 million so far this year alone.
Likewise, it continues to invest in the
community and all the villages around its mines now have schools,
primary healthcare clinics and access to potable water.
At Morila, which is nearing closure, it has
invested significantly in an Agripole which will provide a
sustainable post-mining micro-economy for the villages around the
mine. At Loulo, it has established an agricultural college
which this year produced 40 farming graduates who have been
deployed across 10 farms.
Turning to the operations, Bristow said in the
past quarter Loulo-Gounkoto had again set production records and
was on track to meet its production guidance of 690,00011 ounces of
gold for 2019. Successful exploration was replacing depleted
reserves, ensuring that its remaining life exceeded 10 years.
Loulo-Gounkoto is one of the world’s largest
gold mining operations and one of the largest businesses in West
Africa in terms of revenue, employment and taxes and dividends paid
to the state.
Bristow said that progress had been made in the
search for a global and amicable settlement of the tax and fiscal
issues between Barrick and the Government of Mali and negotiations
on the settlement’s implementation were nearing finalization.
UNDERGROUND MINING BREAKS RECORDS AS
KIBALI CONTINUES TO DELIVER
The underground operation at Kibali Gold
Mine set new mining and shaft production records in the third
quarter to keep the Barrick Tier One10 gold mine on track to meet
or beat its guidance of 750,000 ounces for the year11.
Throughput and recovery for the quarter were at or above the
nameplate level.
Briefing local media in Kinshasa recently,
Barrick president and chief executive Mark Bristow said Kibali -
already a world leader in automation - was taking this to the next
level with the commissioning of a Newtrax system which would
provide real-time data collection, enhance predictive maintenance,
track and manage the fleet, and implement a digital safety system
with personnel tracking. The mine is also working towards a
proof of concept of a highly advanced system which will allow
manned and unmanned operations in the same area.
“In line with our policy of local employment and
advancement, we continue to transfer the specialized skills
required for automated mining to our Congolese workforce. The
success of this policy is evident in Kibali’s consistently
excellent performance and shows what can be achieved with a
world-class asset in a remote and under-developed region of
Africa,” Bristow said. Positive drill results over the last few
years from Ikmava-Kalimva as well as KCD underground are expected
to result in reserve growth net of annual depletion. Ongoing
exploration has positioned Kibali for continued reserve replacement
for years to come, with further potential open pit extensions in
Gorumbwa, Sessenge and the potential KCD super pit, in addition to
the definition of the new KCD underground 11000 Lode. He noted that
Kibali was maintaining its solid health, safety and environmental
record despite the size and complexity of the operation.“Following
the transition of political power in the DRC, which happened
peacefully in the face of many challenges, we plan to engage the
new administration in a review of the 2018 mining code. We
believe it is still possible to arrive at a dispensation which is
more equitable to the industry,” he said.
SENATOR CORTEZ MASTO MEETS WITH NEVADA
GOLD MINES LEADERSHIP
In a scheduled visit to rural Nevada to
engage with stakeholders and communities, US Senator Catherine
Cortez Masto recently visited the Nevada Gold Mines (NGM)
headquarters in Elko, meeting with senior leadership and
employees.
The visit provided the opportunity for Senator
Cortez Masto to engage with NGM leadership to learn more about the
social and economic benefits generated by the company for the state
of Nevada, and its focus on safe and sustainable operations to
create value for all stakeholders. In addition, the senator
heard about NGM’s commitment to growing and training its current
and future workforce in Nevada.
Benefits from the formation of the world’s
largest gold mining complex, a joint venture between Barrick Gold
Corporation (61.5%) as the operator and Newmont Goldcorp
Corporation (38.5%), were shared with the Senator. Greg Walker, NGM
executive managing director, said the meeting was another step
towards building and maintaining strong partnerships with key
stakeholders and community organizations in northern Nevada and
across the state.
“Nevada Gold Mines was honored to host Senator
Cortez Masto,” said Walker. “We appreciate her interest in
our current and future business. With our operations and
employees based here in Nevada, we are proud of our contribution to
the state’s economy as well as the ongoing development of local
communities. We look forward to maintaining our leadership
role as a key employer and business partner in the region and an
active and responsible corporate citizen to the state and the
nation.”
Appendix 12019 Operating and Capital
Expenditure Guidance
GOLD PRODUCTION AND COSTS |
|
2019 forecast production (000s ozs) |
2019 forecast cost of sales6 ($/oz) |
2019 forecast total cash costs7 ($/oz) |
2019 forecast all-in sustaining costs7 ($/oz) |
Carlin12,13 |
960 - 1,020 |
1,020 - 1,080 |
740 - 790 |
955 - 995 |
Cortez12 |
760 - 810 |
810 - 850 |
530 - 580 |
670 - 710 |
Turquoise Ridge12 |
330 - 370 |
800 - 850 |
550 - 600 |
680 - 730 |
Phoenix12 |
50 - 70 |
2,250 - 2,300 |
940 - 990 |
1,120 - 1,150 |
Long Canyon12 |
40 - 50 |
1,100 - 1,150 |
300 - 350 |
920 - 950 |
Pueblo Viejo (60%) |
550 - 600 |
780 - 830 |
465 - 510 |
610 - 650 |
Loulo-Gounkoto (80%) |
520 - 570 |
880 - 930 |
575 - 625 |
810 - 850 |
Kibali (45%) |
330 - 350 |
1,150 - 1,200 |
555 - 605 |
670 - 730 |
Kalgoorlie (50%) |
260 - 280 |
920 - 970 |
740 - 790 |
1,010 - 1,050 |
Tongon (89.7%) |
250 - 270 |
1,300 - 1,350 |
710 - 760 |
780 - 820 |
Porgera (47.5%) |
240 - 260 |
980 - 1,030 |
800 - 850 |
985 - 1,025 |
Veladero (50%) |
230 - 250 |
1,250 - 1,350 |
770 - 820 |
1,150 - 1,250 |
Hemlo |
200 - 220 |
890 - 940 |
765 - 815 |
1,100 - 1,200 |
Tanzania (63.9%)14 |
320 - 350 |
920 - 970 |
665 - 710 |
860 - 920 |
Other Sites15 |
120 - 160 |
1,155 - 1,240 |
895 - 945 |
1,055 - 1,115 |
Total Attributable to Barrick16,17,18 |
5,100 - 5,600 |
940 - 990 |
650 - 700 |
870 - 920 |
|
|
|
|
|
COPPER PRODUCTION AND COSTS |
|
2019 forecast production (millions lbs) |
2019 forecast cost of sales6 ($/lb) |
2019 forecast C1 cash costs8 ($/lb) |
2019 forecast all-in sustaining costs8 ($/lb) |
Lumwana |
210 - 240 |
2.25 - 2.50 |
1.80 - 2.10 |
2.75 - 3.15 |
Zaldívar (50%) |
120 - 130 |
2.40 - 2.70 |
1.65 - 1.85 |
2.00 - 2.20 |
Jabal Sayid (50%) |
45 - 60 |
2.00 - 2.30 |
1.60 - 1.90 |
1.60 - 1.90 |
Total Copper17 |
375 - 430 |
2.30 - 2.70 |
1.70 - 2.00 |
2.40 - 2.90 |
|
|
|
|
|
CAPITAL EXPENDITURES |
|
|
|
|
|
($ millions) |
|
|
|
Minesite sustaining |
1,100 - 1,300 |
|
|
|
Project |
300 - 400 |
|
|
|
Total attributable capital
expenditures14 |
1,400 - 1,700 |
|
|
|
Appendix 2 Production and Cost
Summary
Production and Cost Summary - Gold
|
For the three months
ended |
|
|
9/30/19 |
|
6/30/19 |
|
% Change |
|
9/30/18 |
|
% Change |
|
Nevada Gold Mines LLC (61.5%)a |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
535 |
|
526 |
|
2 |
% |
624 |
|
(14 |
)% |
Gold produced (000s oz 100% basis) |
870 |
|
548 |
|
59 |
% |
650 |
|
33 |
% |
Cost of sales ($/oz) |
1,027 |
|
842 |
|
22 |
% |
800 |
|
28 |
% |
Total cash costs ($/oz)b |
693 |
|
594 |
|
17 |
% |
526 |
|
32 |
% |
All-in sustaining costs ($/oz)b |
946 |
|
752 |
|
26 |
% |
640 |
|
48 |
% |
Cortez (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
126 |
|
280 |
|
(55 |
)% |
326 |
|
(61 |
)% |
Gold produced (000s oz 100% basis) |
205 |
|
280 |
|
(27 |
)% |
326 |
|
(37 |
)% |
Cost of sales ($/oz) |
829 |
|
719 |
|
15 |
% |
630 |
|
32 |
% |
Total cash costs ($/oz)b |
570 |
|
489 |
|
17 |
% |
342 |
|
67 |
% |
All-in sustaining costs ($/oz)b |
772 |
|
561 |
|
38 |
% |
444 |
|
74 |
% |
Carlin (61.5%)d |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
278 |
|
181 |
|
54 |
% |
219 |
|
27 |
% |
Gold produced (000s oz 100% basis) |
452 |
|
181 |
|
150 |
% |
219 |
|
106 |
% |
Cost of sales ($/oz) |
1,007 |
|
1,116 |
|
(10 |
)% |
1,047 |
|
(4 |
)% |
Total cash costs ($/oz)b |
775 |
|
769 |
|
1 |
% |
738 |
|
5 |
% |
All-in sustaining costs ($/oz)b |
1,014 |
|
1,088 |
|
(7 |
)% |
892 |
|
14 |
% |
Turquoise Ridge (61.5%)e |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
82 |
|
65 |
|
26 |
% |
79 |
|
4 |
% |
Gold produced (000s oz 100% basis) |
133 |
|
87 |
|
53 |
% |
105 |
|
27 |
% |
Cost of sales ($/oz) |
1,077 |
|
665 |
|
62 |
% |
805 |
|
34 |
% |
Total cash costs ($/oz)b |
622 |
|
569 |
|
9 |
% |
711 |
|
(13 |
)% |
All-in sustaining costs ($/oz)b |
840 |
|
667 |
|
26 |
% |
757 |
|
11 |
% |
Phoenix (61.5%)f |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
25 |
|
|
|
|
|
Gold produced (000s oz 100% basis) |
41 |
|
|
|
|
|
Cost of sales ($/oz) |
2,186 |
|
|
|
|
|
Total cash costs ($/oz)b |
1,010 |
|
|
|
|
|
All-in sustaining costs ($/oz)b |
1,622 |
|
|
|
|
|
Long Canyon (61.5%)f |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
24 |
|
|
|
|
|
Gold produced (000s oz 100% basis) |
39 |
|
|
|
|
|
Cost of sales ($/oz) |
1,170 |
|
|
|
|
|
Total cash costs ($/oz)b |
353 |
|
|
|
|
|
All-in sustaining costs ($/oz)b |
714 |
|
|
|
|
|
Pueblo Viejo (60%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
139 |
|
124 |
|
12 |
% |
151 |
|
(8 |
)% |
Gold produced (000s oz 100% basis) |
232 |
|
207 |
|
12 |
% |
252 |
|
(8 |
)% |
Cost of sales ($/oz) |
807 |
|
852 |
|
(5 |
)% |
803 |
|
0 |
% |
Total cash costs ($/oz)b |
504 |
|
557 |
|
(10 |
)% |
517 |
|
(3 |
)% |
All-in sustaining costs ($/oz)b |
631 |
|
702 |
|
(10 |
)% |
688 |
|
(8 |
)% |
Production and Cost Summary - Gold
(continued)
|
For the three months
ended |
|
|
9/30/19 |
|
6/30/19 |
|
% Change |
|
9/30/18 |
|
% Change |
|
Loulo-Gounkoto (80%)g |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
153 |
|
147 |
|
4 |
% |
|
|
Gold produced (000s oz 100% basis) |
191 |
|
184 |
|
4 |
% |
|
|
Cost of sales ($/oz) |
1,018 |
|
1,072 |
|
(5 |
)% |
|
|
Total cash costs ($/oz)b |
630 |
|
598 |
|
5 |
% |
|
|
All-in sustaining costs ($/oz)b |
966 |
|
811 |
|
19 |
% |
|
|
Kibali (45%)g |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
91 |
|
95 |
|
(4 |
)% |
|
|
Gold produced (000s oz 100% basis) |
202 |
|
211 |
|
(4 |
)% |
|
|
Cost of sales ($/oz) |
1,187 |
|
868 |
|
37 |
% |
|
|
Total cash costs ($/oz)b |
554 |
|
540 |
|
3 |
% |
|
|
All-in sustaining costs ($/oz)b |
703 |
|
651 |
|
8 |
% |
|
|
Kalgoorlie (50%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
58 |
|
57 |
|
2 |
% |
75 |
|
(23 |
)% |
Gold produced (000s oz 100% basis) |
116 |
|
114 |
|
2 |
% |
150 |
|
(23 |
)% |
Cost of sales ($/oz) |
1,037 |
|
1,038 |
|
0 |
% |
923 |
|
12 |
% |
Total cash costs ($/oz)b |
856 |
|
846 |
|
1 |
% |
753 |
|
14 |
% |
All-in sustaining costs ($/oz)b |
1,170 |
|
1,204 |
|
(3 |
)% |
840 |
|
39 |
% |
Tongon (89.7%)g |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
62 |
|
61 |
|
2 |
% |
|
|
Gold produced (000s oz 100% basis) |
69 |
|
68 |
|
1 |
% |
|
|
Cost of sales ($/oz) |
1,396 |
|
1,562 |
|
(11 |
)% |
|
|
Total cash costs ($/oz)b |
793 |
|
750 |
|
6 |
% |
|
|
All-in sustaining costs ($/oz)b |
869 |
|
802 |
|
8 |
% |
|
|
Porgera (47.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
75 |
|
61 |
|
23 |
% |
53 |
|
42 |
% |
Gold produced (000s oz 100% basis) |
158 |
|
128 |
|
23 |
% |
112 |
|
41 |
% |
Cost of sales ($/oz) |
1,024 |
|
1,032 |
|
(1 |
)% |
1,067 |
|
(4 |
)% |
Total cash costs ($/oz)b |
868 |
|
893 |
|
(3 |
)% |
775 |
|
12 |
% |
All-in sustaining costs ($/oz)b |
1,053 |
|
1,112 |
|
(5 |
)% |
1,084 |
|
(3 |
)% |
Veladero (50%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
58 |
|
75 |
|
(23 |
)% |
49 |
|
18 |
% |
Gold produced (000s oz 100% basis) |
116 |
|
150 |
|
(23 |
)% |
98 |
|
18 |
% |
Cost of sales ($/oz) |
1,243 |
|
1,186 |
|
5 |
% |
1,083 |
|
15 |
% |
Total cash costs ($/oz)b |
773 |
|
746 |
|
4 |
% |
581 |
|
33 |
% |
All-in sustaining costs ($/oz)b |
1,142 |
|
1,046 |
|
9 |
% |
995 |
|
15 |
% |
Hemlo |
|
|
|
|
|
Gold produced (000s oz) |
49 |
|
55 |
|
(11 |
)% |
41 |
|
20 |
% |
Cost of sales ($/oz) |
1,083 |
|
953 |
|
14 |
% |
1,095 |
|
(1 |
)% |
Total cash costs ($/oz)b |
953 |
|
822 |
|
16 |
% |
996 |
|
(4 |
)% |
All-in sustaining costs ($/oz)b |
1,280 |
|
1,015 |
|
26 |
% |
1,247 |
|
3 |
% |
Tanzania (63.9%)h |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
53 |
|
101 |
|
(48 |
)% |
87 |
|
(39 |
)% |
Gold produced (000s oz 100% basis) |
83 |
|
158 |
|
(47 |
)% |
137 |
|
(39 |
)% |
Cost of sales ($/oz) |
1,057 |
|
920 |
|
15 |
% |
842 |
|
26 |
% |
Total cash costs ($/oz)b |
788 |
|
659 |
|
20 |
% |
670 |
|
18 |
% |
All-in sustaining costs ($/oz)b |
947 |
|
792 |
|
20 |
% |
880 |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production and Cost Summary - Gold
(continued) |
|
|
|
|
|
|
|
For the three months
ended |
|
|
9/30/19 |
|
6/30/19 |
|
% Change |
|
9/30/18 |
|
% Change |
|
Lagunas Norte |
|
|
|
|
|
Gold produced (000s oz) |
33 |
|
39 |
|
(15 |
)% |
64 |
|
(48 |
)% |
Cost of sales ($/oz) |
1,661 |
|
952 |
|
74 |
% |
720 |
|
131 |
% |
Total cash costs ($/oz)b |
1,327 |
|
732 |
|
81 |
% |
472 |
|
181 |
% |
All-in sustaining costs ($/oz)b |
1,422 |
|
998 |
|
42 |
% |
631 |
|
125 |
% |
Total Attributable to Barricki |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
1,306 |
|
1,353 |
|
(3 |
)% |
1,149 |
|
14 |
% |
Cost of sales ($/oz)j |
1,065 |
|
964 |
|
10 |
% |
850 |
|
25 |
% |
Total cash costs ($/oz)b |
710 |
|
651 |
|
9 |
% |
587 |
|
21 |
% |
All-in sustaining costs ($/oz)b |
984 |
|
869 |
|
13 |
% |
785 |
|
25 |
% |
- Represents the combined results of Cortez, Goldstrike
(including our 60% share of South Arturo) and our 75% interest in
Turquoise Ridge until June 30, 2019. Commencing July 1, 2019,
the date Nevada Gold Mines was established, the results represent
our 61.5% interest in Cortez, Carlin (including Goldstrike and 60%
of South Arturo), Turquoise Ridge (including Twin Creeks), Phoenix
and Long Canyon.
- These are non-GAAP financial performance measures with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. For further
information and a detailed reconciliation of each non-GAAP measure
used in this section of the 2019 Third Quarter Report to the most
directly comparable IFRS measure, please see endnote 7.
- On July 1, 2019, Cortez was contributed to Nevada Gold Mines, a
joint venture with Newmont Goldcorp. As a result, the amounts
presented are on an 100% basis up until June 30, 2019, and on a
61.5% basis thereafter.
- On July 1, 2019, Barrick's Goldstrike and Newmont Goldcorp's
Carlin were contributed to Nevada Gold Mines and are now referred
to as Carlin. As a result, the amounts presented represent
Goldstrike on a 100% basis (including our 60% share of South
Arturo) up until June 30, 2019, and the combined results of Carlin
and Goldstrike (including our 60% share of South Arturo) on a 61.5%
basis thereafter.
- Barrick owned 75% of Turquoise Ridge through the end of the
second quarter of 2019, with our joint venture partner, Newmont
Goldcorp, owning the remaining 25%. Turquoise Ridge was
proportionately consolidated on the basis that the joint venture
partners that have joint control have rights to the assets and
obligations for the liabilities relating to the arrangement. The
figures presented in this table are based on our 75% interest in
Turquoise Ridge until June 30, 2019. On July 1, 2019, Barrick's 75%
interest in Turquoise Ridge and Newmont Goldcorp's Twin Creeks and
25% interest in Turquoise Ridge were contributed to Nevada Gold
Mines. Starting July 1, 2019, the results represent our 61.5%
share of Turquoise Ridge and Twin Creeks, now referred to as
Turquoise Ridge.
- These sites were acquired as a result of the formation of
Nevada Gold Mines on July 1, 2019.
- These sites did not form a part of the Barrick consolidated
results in the three months ended June 30, 2018 as these sites were
acquired as a result of the Merger.
- Formerly known as Acacia Mining plc. On September 17,
2019, Barrick acquired all of the shares of Acacia it did not
own. Operating results will be included at 100% from October
1, 2019 (notwithstanding the completion of the Acacia transaction
on September 17, 2019, we consolidated our interest in Acacia and
recorded a non-controlling interest of 36.1% in the income
statement for the entirety of the third quarter of 2019 as a matter
of convenience) up until the GoT's 16% free-carried interest is
made effective, and on an 84% basis thereafter.
- With the end of mining at Golden Sunlight and Morila in the
second quarter as previously reported, we have ceased to include
production or non-GAAP cost metrics for these sites from July 1,
2019 onwards although these sites are included in the Total
Attributable to Barrick in the prior period comparatives.
- Cost of sales per ounce (Barrick’s share) is calculated as cost
of sales - gold on an attributable basis (excluding sites in care
and maintenance) divided by gold equity ounces sold.
Production and Cost Summary -
Copper
|
For the three months
ended |
|
|
9/30/19 |
|
6/30/19 |
|
% Change |
|
9/30/18 |
|
% Change |
|
Lumwana |
|
|
|
|
|
Copper production (millions lbs) |
65 |
|
49 |
|
33 |
% |
64 |
|
2 |
% |
Cost of sales ($/lb) |
2.04 |
|
2.07 |
|
(1 |
)% |
2.21 |
|
(8 |
)% |
C1 cash costs ($/lb)a |
1.83 |
|
1.70 |
|
8 |
% |
2.05 |
|
(11 |
)% |
All-in sustaining costs ($/lb)a |
3.66 |
|
2.78 |
|
32 |
% |
3.12 |
|
17 |
% |
Zaldívar
(50%) |
|
|
|
|
|
Copper production (millions lbs attributable basis) |
32 |
|
32 |
|
— |
% |
28 |
|
14 |
% |
Copper produced (millions lbs 100% basis) |
64 |
|
64 |
|
— |
% |
56 |
|
14 |
% |
Cost of sales ($/lb) |
2.18 |
|
2.32 |
|
(6 |
)% |
2.59 |
|
(16 |
)% |
C1 cash costs ($/lb)a |
1.55 |
|
1.61 |
|
(4 |
)% |
1.98 |
|
(22 |
)% |
All-in sustaining costs ($/lb)a |
1.91 |
|
1.85 |
|
3 |
% |
2.29 |
|
(17 |
)% |
Jabal Sayid (50%) |
|
|
|
|
|
Copper production (millions lbs attributable basis) |
15 |
|
16 |
|
(6 |
)% |
14 |
|
7 |
% |
Copper produced (millions lbs 100% basis) |
30 |
|
32 |
|
(6 |
)% |
28 |
|
7 |
% |
Cost of sales ($/lb) |
1.63 |
|
1.45 |
|
12 |
% |
1.66 |
|
(2 |
)% |
C1 cash costs ($/lb)a |
1.42 |
|
1.22 |
|
16 |
% |
1.56 |
|
(9 |
)% |
All-in sustaining costs ($/lb)a |
1.65 |
|
1.31 |
|
26 |
% |
1.67 |
|
(1 |
)% |
Total Copper |
|
|
|
|
|
Copper production (millions lbs attributable basis) |
112 |
|
97 |
|
15 |
% |
106 |
|
6 |
% |
Cost of sales ($/lb)b |
2.00 |
|
2.04 |
|
(2 |
)% |
2.18 |
|
(8 |
)% |
C1 cash costs ($/lb)a |
1.62 |
|
1.59 |
|
2 |
% |
1.94 |
|
(16 |
)% |
All-in sustaining costs ($/lb)a |
2.58 |
|
2.28 |
|
13 |
% |
2.71 |
|
(5 |
)% |
- These are non-GAAP financial performance measures with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. For further
information and a detailed reconciliation of each non-GAAP measure
used in this section of the press release to the most directly
comparable IFRS measure, please see endnote 8.
- Cost of sales per pound (Barrick’s share) is calculated as cost
of sales - copper plus our equity share of cost of sales
attributable to Zaldívar and Jabal Sayid divided by copper pounds
sold.
Appendix 32019 Outlook Assumptions and
Economic Sensitivity Analysis19
|
2019 Guidance Assumption |
Hypothetical Change |
Impact on EBITDA (millions) |
Impact on AISC7,8 |
Gold revenue, net of
royalties |
$1,250/oz |
+/- $100/oz |
+/- $ 128 |
+/- $ 3/oz |
Copper
revenue, net of royalties |
$2.75/lb |
+/- $0.50/lb |
+/- $ 40 |
+/- $ 0.05/lb |
|
|
|
|
|
Gold
all-in sustaining costs7 |
|
|
|
|
WTI crude oil price |
$65/bbl |
+/- $10/bbl |
+/- $ 10 |
+/- $ 7/oz |
Australian dollar exchange
rate |
0.75:1 |
+/- 10% |
+/- $ 7 |
+/- $ 5/oz |
Argentine peso exchange
rate |
60:1 |
+/- 10% |
+/- $ 1 |
+/- $ 1/oz |
Canadian dollar exchange
rate |
1.3:1 |
+/- 10% |
+/- $ 9 |
+/- $ 7/oz |
European euro exchange rate |
1.2:1 |
+/- 10% |
+/- $ 0 |
+/- $ 0/oz |
|
|
|
|
|
Copper
all-in sustaining costs8 |
|
|
|
|
WTI crude oil price |
$65/bbl |
+/- $10/bbl |
+/- $ 2 |
+/- $ 0.02/lb |
Chilean
peso exchange rate |
680:1 |
+/- 10% |
+/- $ 2 |
+/- $ 0.03/lb |
Technical Information
The scientific and technical information
contained in this press release has been reviewed and approved by
Steven Yopps, MMSA, Director - Metallurgy, North America; Chad
Yuhasz, P.Geo, Mineral Resource Manager, Latin America and
Australia Pacific; Simon Bottoms, CGeol, MGeol, FGS, MAusIMM,
Mineral Resources Manager, Africa and Middle East; Rodney Quick,
MSc, Pr. Sci.Nat, Mineral Resource Management and Evaluation
Executive; John Steele, CIM, Metallurgy, Engineering and Capital
Projects Executive; and Rob Krcmarov, FAusIMM, Executive Vice
President, Exploration and Growth — each a “Qualified Person” as
defined in National Instrument 43-101 – Standards of Disclosure for
Mineral Projects.
Endnotes
Endnote 1“Adjusted net
earnings” and “adjusted net earnings per share” are non-GAAP
financial performance measures. Adjusted net earnings excludes the
following from net earnings: certain impairment charges (reversals)
related to intangibles, goodwill, property, plant and equipment,
and investments; gains (losses) and other one-time costs relating
to acquisitions or dispositions; foreign currency translation gains
(losses); significant tax adjustments not related to current period
earnings; unrealized gains (losses) on non-hedge derivative
instruments; and the tax effect and non-controlling interest of
these items. The Company uses this measure internally to evaluate
our underlying operating performance for the reporting periods
presented and to assist with the planning and forecasting of future
operating results. Barrick believes that adjusted net earnings is a
useful measure of our performance because these adjusting items do
not reflect the underlying operating performance of our core mining
business and are not necessarily indicative of future operating
results. Adjusted net earnings and adjusted net earnings per share
are intended to provide additional information only and do not have
any standardized meaning under IFRS and may not be comparable to
similar measures of performance presented by other companies. They
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Further
details on these non-GAAP measures are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov.
Reconciliation of Net Earnings to Net Earnings per
Share, Adjusted Net Earnings and Adjusted Net Earnings per
Share
($
millions, except per share amounts in dollars) |
For the three months ended |
|
For the nine months ended |
|
|
9/30/19 |
|
6/30/19 |
|
9/30/18 |
|
9/30/19 |
|
9/30/18 |
|
Net earnings (loss) attributable
to equity holders of the Company |
2,277 |
|
194 |
|
(412 |
) |
2,582 |
|
(348 |
) |
Impairment charges related to
intangibles, goodwill, property, plant and equipment, and
investmentsa |
(872 |
) |
12 |
|
431 |
|
(857 |
) |
492 |
|
Acquisition/disposition
(gains) lossesb |
(1,901 |
) |
(12 |
) |
(1 |
) |
(1,913 |
) |
(49 |
) |
(Gain) loss on currency
translation |
40 |
|
(6 |
) |
62 |
|
56 |
|
152 |
|
Significant tax adjustmentsc |
35 |
|
(83 |
) |
(39 |
) |
(40 |
) |
23 |
|
Other expense adjustmentsd |
53 |
|
58 |
|
68 |
|
158 |
|
105 |
|
Unrealized (gains) losses on
non-hedge derivative instruments |
1 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Tax
effect and non-controlling interest |
631 |
|
(9 |
) |
(20 |
) |
616 |
|
(35 |
) |
Adjusted net earnings |
264 |
|
154 |
|
89 |
|
602 |
|
340 |
|
Net earnings per sharee |
1.30 |
|
0.11 |
|
(0.35 |
) |
1.47 |
|
(0.30 |
) |
Adjusted net earnings per sharee |
0.15 |
|
0.09 |
|
0.08 |
|
0.34 |
|
0.29 |
|
- Net impairment reversals for the three and nine month periods
ended September 30, 2019 primarily relate to non-current asset
reversals at Lumwana, partially offset by impairments at Cortez and
Lagunas Norte. For the three and nine months ended September
30, 2018, net impairment charges primarily relate to non-current
asset impairments at Lagunas Norte.
- Acquisition/disposition gains for the three and nine month
periods ended September 30, 2019 primarily relate to the gain on
the remeasurement of Turquoise Ridge to fair value as a result of
its contribution to Nevada Gold Mines.
- Significant tax adjustments for the three months ended June 30,
2019 primarily relate to an adjustment to deferred taxes at
Veladero.
- Other expense adjustments for the three and nine month periods
ended September 30, 2019 primarily relate to severance costs
as a result of the implementation of a number of organizational
reductions, the impact of changes in the discount rate assumptions
on our closed mine rehabilitation provision and transaction costs
related to Nevada Gold Mines and Acacia.
- Calculated using weighted average number of shares outstanding
under the basic method of earnings per share.
Endnote 2Includes Tanzania on a
63.9% basis (notwithstanding the completion of the Acacia
transaction on September 17, 2019, we consolidated our interest in
Acacia and recorded a non-controlling interest of 36.1% in the
income statement for the entirety of the third quarter of 2019 as a
matter of convenience), Pueblo Viejo on a 60% basis, South Arturo
on a 60% basis (36.9% of South Arturo from July 1, 2019 onwards as
a result of its contribution to Nevada Gold Mines), and Veladero on
a 50% basis, which reflects our equity share of production and
sales. Also includes Loulo-Gounkoto on an 80% basis, Kibali
on a 45% basis, Tongon on an 89.7% basis and Morila on a 40% basis,
which reflects our equity share of production and sales, commencing
January 1, 2019, the effective date of the Merger. Also
removes the non-controlling interest of 38.5% Nevada Gold Mines
from July 1, 2019 onwards.
Endnote 3"Realized price" is a
non-GAAP financial measure which excludes from sales: unrealized
gains and losses on non-hedge derivative contracts; unrealized
mark-to-market gains and losses on provisional pricing from copper
and gold sales contracts; sales attributable to ore purchase
arrangements; treatment and refining charges; and export
duties. This measure is intended to enable Management to better
understand the price realized in each reporting period for gold and
copper sales because unrealized mark-to-market values of non-hedge
gold and copper derivatives are subject to change each period due
to changes in market factors such as market and forward gold and
copper prices, so that prices ultimately realized may differ from
those recorded. The exclusion of such unrealized mark-to-market
gains and losses from the presentation of this performance measure
enables investors to understand performance based on the realized
proceeds of selling gold and copper production. The realized price
measure is intended to provide additional information and does not
have any standardized definition under IFRS and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Further details on
these non-GAAP measures are provided in the MD&A accompanying
Barrick’s financial statements filed from time to time on SEDAR
at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Sales to Realized
Price per ounce/pound
($
millions, except per ounce/pound information in dollars) |
Gold |
Copper |
Gold |
Copper |
|
For the three months ended |
|
For the nine months ended |
|
|
9/30/19 |
|
6/30/19 |
|
9/30/18 |
|
9/30/19 |
|
6/30/19 |
|
9/30/18 |
|
9/30/19 |
|
9/30/18 |
|
9/30/19 |
|
9/30/18 |
|
Sales |
2,585 |
|
1,937 |
|
1,661 |
|
45 |
|
103 |
|
145 |
|
6,428 |
|
4,866 |
|
311 |
|
368 |
|
Sales applicable to
non-controlling interests |
(748 |
) |
(240 |
) |
(179 |
) |
0 |
|
0 |
|
0 |
|
(1,212 |
) |
(537 |
) |
0 |
|
0 |
|
Sales applicable to equity
method investmentsa,b |
140 |
|
135 |
|
0 |
|
100 |
|
124 |
|
126 |
|
404 |
|
0 |
|
345 |
|
326 |
|
Realized non-hedge gold/copper
derivative (losses) gains |
0 |
|
1 |
|
0 |
|
0 |
|
0 |
|
0 |
|
1 |
|
2 |
|
0 |
|
0 |
|
Sales applicable to sites in
care and maintenancec |
(32 |
) |
(26 |
) |
(22 |
) |
0 |
|
0 |
|
0 |
|
(84 |
) |
(83 |
) |
0 |
|
0 |
|
Treatment and refinement
charges |
0 |
|
0 |
|
0 |
|
18 |
|
25 |
|
43 |
|
0 |
|
1 |
|
74 |
|
103 |
|
Export duties |
0 |
|
0 |
|
3 |
|
0 |
|
0 |
|
0 |
|
0 |
|
3 |
|
0 |
|
0 |
|
Revenues – as adjusted |
1,945 |
|
1,807 |
|
1,463 |
|
163 |
|
252 |
|
314 |
|
5,537 |
|
4,252 |
|
730 |
|
797 |
|
Ounces/pounds sold (000s ounces/millions pounds)c |
1,318 |
|
1,372 |
|
1,204 |
|
65 |
|
96 |
|
114 |
|
4,055 |
|
3,312 |
|
264 |
|
273 |
|
Realized gold/copper price per ounce/poundd |
1,476 |
|
1,317 |
|
1,216 |
|
2.55 |
|
2.62 |
|
2.76 |
|
1,365 |
|
1,284 |
|
2.78 |
|
2.92 |
|
- Represents sales of $133 million and $375 million,
respectively, for the three and nine month periods ended
September 30, 2019 (June 30, 2019: $125 million and
September 30, 2018: $nil and $nil, respectively) applicable to
our 45% equity method investment in Kibali of $8 million and $30
million, respectively (June 30, 2019: $10 million and
September 30, 2018: $nil and $nil, respectively) applicable to
our 40% equity method investment in Morila for gold. Represents
sales of $66 million and $233 million, respectively, for the three
and nine months ended September 30, 2019 (June 30, 2019:
$86 million and September 30, 2018: $74 million and $216
million, respectively) applicable to our 50% equity method
investment in Zaldívar and $37 million and $125 million,
respectively (June 30, 2019: $44 million and
September 30, 2018: $58 million and $124 million,
respectively) applicable to our 50% equity method investment in
Jabal Sayid for copper.
- Sales applicable to equity method investments are net of
treatment and refinement charges.
- Figures exclude Pierina, and starting in the third quarter of
2019, Golden Sunlight and Morila, from the calculation of realized
price per ounce as the mine is mining incidental ounces as it
enters closure.
- Realized price per ounce/pound may not calculate based on
amounts presented in this table due to rounding.
Endnote 4 “Free cash flow”
is a non-GAAP financial performance measure which deducts capital
expenditures from net cash provided by operating activities.
Barrick believes this to be a useful indicator of our ability to
operate without reliance on additional borrowing or usage of
existing cash. Free cash flow is intended to provide additional
information only and does not have any standardized meaning under
IFRS and may not be comparable to similar measures of performance
presented by other companies. Free cash flow should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Further details on
this non-GAAP measure are provided in the MD&A accompanying
Barrick’s financial statements filed from time to time on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Cash Provided by Operating
Activities to Free Cash Flow
($
millions) |
For the three months ended |
|
For the nine months ended |
|
|
9/30/19 |
|
6/30/19 |
|
9/30/18 |
|
9/30/19 |
|
9/30/18 |
|
Net cash provided by operating
activities |
1,004 |
|
434 |
|
706 |
|
1,958 |
|
1,354 |
|
Capital expenditures |
(502 |
) |
(379 |
) |
(387 |
) |
(1,255 |
) |
(1,026 |
) |
Free cash flow |
502 |
|
55 |
|
319 |
|
703 |
|
328 |
|
Endnote 5These amounts are
presented on the same basis as our guidance and include our 60%
share of Pueblo Viejo and South Arturo (36.9% of South Arturo from
July 1, 2019 onwards as a result of its contribution to Nevada Gold
Mines), our 63.9% share of Tanzania (notwithstanding the completion
of the Acacia transaction on September 17, 2019, we consolidated
our interest in Acacia and recorded a non-controlling interest of
36.1% in the income statement for the entirety of the third quarter
of 2019 as a matter of convenience) and our 50% share of Zaldívar
and Jabal Sayid. Also includes our 80% share of
Loulo-Gounkoto, 89.7% share of Tongon, 45% share of Kibali and 40%
share of Morila commencing January 1, 2019, the effective date of
the Merger. Starting July 1, 2019, it also includes our 61.5%
share of Nevada Gold Mines.
Endnote 6Cost of sales
applicable to gold per ounce is calculated using cost of sales
applicable to gold on an attributable basis (removing the
non-controlling interest of 40% Pueblo Viejo, 36.1% Tanzania
(notwithstanding the completion of the Acacia transaction on
September 17, 2019, we consolidated our interest in Acacia and
recorded a non-controlling interest of 36.1% in the income
statement for the entirety of the third quarter of 2019 as a matter
of convenience) and 40% South Arturo from cost of sales (63.1% of
South Arturo from July 1, 2019 onwards as a result of its
contribution to Nevada Gold Mines)), divided by attributable gold
ounces. The non-controlling interest of 20% Loulo-Gounkoto and
10.3% of Tongon is also removed from cost of sales and our
proportionate share of cost of sales attributable to equity method
investments (Kibali and Morila) is included commencing January 1,
2019, the effective date of the Merger. Also removes the
non-controlling interest of 38.5% Nevada Gold Mines from cost of
sales from July 1, 2019 onwards. Cost of sales applicable to copper
per pound is calculated using cost of sales applicable to copper
including our proportionate share of cost of sales attributable to
equity method investments (Zaldívar and Jabal Sayid), divided by
consolidated copper pounds (including our proportionate share of
copper pounds from our equity method investments).
Endnote 7“Total cash costs” per
ounce, “All-in sustaining costs” per ounce and "All-in costs" per
ounce are non-GAAP financial performance measures. “Total cash
costs” per ounce starts with cost of sales applicable to gold
production, but excludes the impact of depreciation, the
non-controlling interest of cost of sales, and includes by-product
credits. “All-in sustaining costs” per ounce begin with “Total cash
costs” per ounce and add further costs which reflect the additional
costs of operating a mine, primarily sustaining capital
expenditures, sustaining leases, general & administrative
costs, minesite exploration and evaluation costs, and reclamation
cost accretion and amortization. "All-in costs" per ounce
starts with "All-in sustaining costs" per ounce and adds additional
costs that reflect the varying costs of producing gold over the
life-cycle of a mine, including: project capital expenditures and
other non-sustaining costs. Barrick believes that the use of
“total cash costs” per ounce, “all-in sustaining costs” per ounce
and "All-in costs" per ounce will assist investors, analysts and
other stakeholders in understanding the costs associated with
producing gold, understanding the economics of gold mining,
assessing our operating performance and also our ability to
generate free cash flow from current operations and to generate
free cash flow on an overall Company basis. “Total cash costs” per
ounce, “All-in sustaining costs” per ounce and "All-in costs" per
ounce are intended to provide additional information only and do
not have any standardized meaning under IFRS. Although a
standardized definition of all-in sustaining costs was published in
2013 by the World Gold Council (a market development
organization for the gold industry comprised of and funded by 26
gold mining companies from around the world, including Barrick), it
is not a regulatory organization, and other companies may calculate
this measure differently. Starting from the first quarter of 2019,
we have renamed "cash costs" to "total cash costs" when referring
to our gold operations. The calculation of total cash costs
is identical to our previous calculation of cash costs with only a
change in the naming convention of this non-GAAP measure.
These measures should not be considered in isolation or as a
substitute for measures prepared in accordance with IFRS. Further
details on these non-GAAP measures are provided in the MD&A
accompanying Barrick’s financial statements filed from time to time
on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov.
Reconciliation of Gold Cost of Sales to
Total cash costs, All-in sustaining costs and All-in costs,
including on a per ounce basis
($
millions, except per ounce information in dollars) |
|
For the three months ended |
|
For the nine months ended |
|
|
Footnote |
9/30/19 |
|
6/30/19 |
|
9/30/18 |
|
9/30/19 |
|
9/30/18 |
|
Cost of sales applicable to gold
production |
|
1,831 |
|
1,437 |
|
1,164 |
|
4,618 |
|
3,268 |
|
Depreciation |
|
(538 |
) |
(431 |
) |
(319 |
) |
(1,353 |
) |
(907 |
) |
Cash cost of sales applicable to equity method investments |
|
45 |
|
62 |
|
0 |
|
169 |
|
0 |
|
By-product credits |
|
(48 |
) |
(23 |
) |
(31 |
) |
(95 |
) |
(105 |
) |
Realized (gains) losses on hedge and non-hedge derivatives |
a |
1 |
|
(1 |
) |
0 |
|
0 |
|
0 |
|
Non-recurring items |
b |
(4 |
) |
(9 |
) |
(7 |
) |
(33 |
) |
(17 |
) |
Other |
c |
(19 |
) |
(26 |
) |
(18 |
) |
(65 |
) |
(60 |
) |
Non-controlling interests |
d |
(339 |
) |
(112 |
) |
(83 |
) |
(552 |
) |
(233 |
) |
Total cash costs |
|
929 |
|
897 |
|
706 |
|
2,689 |
|
1,946 |
|
General & administrative costs |
|
68 |
|
59 |
|
71 |
|
181 |
|
212 |
|
Minesite exploration and evaluation costs |
e |
22 |
|
12 |
|
11 |
|
45 |
|
31 |
|
Minesite sustaining capital expenditures |
f |
406 |
|
267 |
|
233 |
|
926 |
|
699 |
|
Sustaining leases |
|
5 |
|
8 |
|
0 |
|
23 |
|
0 |
|
Rehabilitation - accretion and amortization (operating sites) |
g |
28 |
|
16 |
|
25 |
|
58 |
|
63 |
|
Non-controlling interest, copper operations and other |
h |
(184 |
) |
(76 |
) |
(101 |
) |
(335 |
) |
(256 |
) |
All-in
sustaining costs |
|
1,274 |
|
1,183 |
|
945 |
|
3,587 |
|
2,695 |
|
Project exploration and evaluation and project costs |
e |
64 |
|
86 |
|
78 |
|
213 |
|
228 |
|
Community relations costs not related to current operations |
|
1 |
|
0 |
|
1 |
|
2 |
|
2 |
|
Project capital expenditures |
f |
96 |
|
108 |
|
126 |
|
324 |
|
332 |
|
Rehabilitation - accretion and amortization (non-operating
sites) |
g |
5 |
|
7 |
|
9 |
|
19 |
|
25 |
|
Non-controlling interest and copper operations and other |
h |
(46 |
) |
(28 |
) |
(8 |
) |
(77 |
) |
(16 |
) |
All-in
costs |
|
1,394 |
|
1,356 |
|
1,151 |
|
4,068 |
|
3,266 |
|
Ounces sold - equity basis (000s ounces) |
i |
1,318 |
|
1,372 |
|
1,204 |
|
4,055 |
|
3,312 |
|
Cost of sales per ounce |
j,k |
1,065 |
|
964 |
|
850 |
|
991 |
|
859 |
|
Total cash costs per ounce |
k |
710 |
|
651 |
|
587 |
|
663 |
|
588 |
|
Total
cash costs per ounce (on a co-product basis) |
k,l |
735 |
|
663 |
|
603 |
|
680 |
|
609 |
|
All-in sustaining costs per
ounce |
k |
984 |
|
869 |
|
785 |
|
883 |
|
813 |
|
All-in
sustaining costs per ounce (on a co-product basis) |
k,l |
1,009 |
|
881 |
|
801 |
|
900 |
|
834 |
|
All-in costs per ounce |
k |
1,074 |
|
999 |
|
956 |
|
999 |
|
986 |
|
All-in
costs per ounce (on a co-product basis) |
k,l |
1,099 |
|
1,011 |
|
972 |
|
1,016 |
|
1,007 |
|
a. Realized
(gains) losses on hedge and non-hedge
derivatives Includes realized hedge losses of $nil
and $nil, respectively, for the three and nine month periods ended
September 30, 2019 (June 30, 2019: $nil and
September 30, 2018: $nil and $2 million), and realized
non-hedge losses of $1 million and $nil, respectively, for the
three and nine month periods ended September 30, 2019
(June 30, 2019: gains of $1 million and September 30,
2018: $nil and $2 million, respectively). Refer to note 5 to the
Financial Statements for further information.
b. Non-recurring
items Non-recurring items in 2019 relate to
organizational restructuring. These costs are not indicative
of our cost of production and have been excluded from the
calculation of total cash costs.
c. Other Other
adjustments for the three and nine month periods ended
September 30, 2019 include the removal of total cash costs and
by-product credits associated with our Pierina mine, and starting
in the third quarter of 2019, Golden Sunlight and Morila, which all
are mining incidental ounces as they enter closure, of $19 million
and $57 million, respectively (June 30, 2019: $19 million and
September 30, 2018: $18 million and $60 million, respectively,
relating to Pierina only).
d. Non-controlling
interests Non-controlling interests include
non-controlling interests related to gold production of $506
million and $829 million, respectively, for the three and nine
month periods ended September 30, 2019 (June 30, 2019:
$171 million and September 30, 2018: $121 million and $339
million, respectively). Non-controlling interests include Pueblo
Viejo and Tanzania (notwithstanding the completion of the Acacia
transaction on September 17, 2019, we consolidated our interest in
Acacia and recorded a non-controlling interest of 36.1% in the
income statement for the entirety of the third quarter of 2019 as a
matter of convenience). Starting January 1, 2019, the effective
date of the Merger, non-controlling interests also include
Loulo-Gounkoto and Tongon and starting July 1, 2019, it also
includes Nevada Gold Mines. Refer to note 5 to the Financial
Statements for further information.
e. Exploration and
evaluation costs Exploration, evaluation and
project expenses are presented as minesite sustaining if it
supports current mine operations and project if it relates to
future projects. Refer to page 70 of the Third Quarter 2019
MD&A.
f. Capital
expenditures Capital expenditures are related to our
gold sites only and are presented on a 100% cash basis starting
from January 1, 2019 and on a 100% accrued basis for the three and
nine month periods ended September 30, 2018. They are split
between minesite sustaining and project capital expenditures.
Project capital expenditures are distinct projects designed to
increase the net present value of the mine and are not related to
current production. Significant projects in the current year are
stripping at Rangefront declines, Cortez Crossroads, the Goldrush
exploration declines, the Deep South Expansion, and construction of
the third shaft at Turquoise Ridge. Refer to page 68 of the Third
Quarter 2019 MD&A.
g. Rehabilitation—accretion and
amortization Includes depreciation on the assets
related to rehabilitation provisions of our gold operations and
accretion on the rehabilitation provision of our gold operations,
split between operating and non-operating sites.
h. Non-controlling
interest and copper operations Removes
general & administrative costs related to non-controlling
interests and copper based on a percentage allocation of revenue.
Also removes exploration, evaluation and project expenses,
rehabilitation costs and capital expenditures incurred by our
copper sites and the non-controlling interest of our Tanzania
(notwithstanding the completion of the Acacia transaction on
September 17, 2019, we consolidated our interest in Acacia and
recorded a non-controlling interest of 36.1% in the income
statement for the entirety of the third quarter of 2019 as a matter
of convenience) and Pueblo Viejo operating segments and South
Arturo (63.1% of South Arturo from July 1, 2019 onwards as a result
of its contribution to Nevada Gold Mines). Also removes the
non-controlling interest of our Loulo-Gounkoto and Tongon operating
segments commencing January 1, 2019, the effective date of the
Merger, and of Nevada Gold Mines starting July 1, 2019. It
also includes capital expenditures applicable to equity method
investments. Figures remove the impact of Pierina, and starting in
the third quarter of 2019, Golden Sunlight and Morila. The impact
is summarized as the following:
($
millions) |
For the three months ended |
|
For the nine months ended |
|
Non-controlling interest, copper operations and other |
9/30/19 |
|
6/30/19 |
|
9/30/18 |
|
9/30/19 |
|
9/30/18 |
|
General & administrative
costs |
(22 |
) |
(23 |
) |
(20 |
) |
(55 |
) |
(68 |
) |
Minesite exploration and
evaluation expenses |
(9 |
) |
0 |
|
0 |
|
(10 |
) |
(1 |
) |
Rehabilitation - accretion and
amortization (operating sites) |
(10 |
) |
(1 |
) |
(1 |
) |
(12 |
) |
(4 |
) |
Minesite sustaining capital expenditures |
(143 |
) |
(52 |
) |
(80 |
) |
(258 |
) |
(183 |
) |
All-in
sustaining costs total |
(184 |
) |
(76 |
) |
(101 |
) |
(335 |
) |
(256 |
) |
Project exploration and
evaluation and project costs |
(12 |
) |
(26 |
) |
(7 |
) |
(40 |
) |
(13 |
) |
Project capital expenditures |
(34 |
) |
(2 |
) |
(1 |
) |
(37 |
) |
(3 |
) |
All-in
costs total |
(46 |
) |
(28 |
) |
(8 |
) |
(77 |
) |
(16 |
) |
i. Ounces sold -
equity basisFigures remove the impact of Pierina, and
starting in the third quarter of 2019, Golden Sunlight and Morila,
which are mining incidental ounces as the sites enter closure.
j. Cost of sales
per ounceFigures remove the cost of sales impact of
Pierina of $28 million and $99 million, respectively, for the three
and nine month periods ended September 30, 2019 (June 30,
2019: $44 million and September 30, 2018: $23 million and $84
million, respectively), and starting in the third quarter of 2019,
Golden Sunlight of $1 million and $1 million, respectively, for the
three and nine month periods ended September 30, 2019
(June 30, 2019: $nil and September 30, 2018: $nil and
$nil, respectively) and Morila of $10 million and $10 million,
respectively, for the three and nine month periods ended
September 30, 2019 (June 30, 2019: $nil and
September 30, 2018: $nil and $nil, respectively) which are
mining incidental ounces as these sites enter closure. Cost of
sales per ounce excludes non-controlling interest related to gold
production. Cost of sales applicable to gold per ounce is
calculated using cost of sales on an attributable basis (removing
the non-controlling interest of 40% Pueblo Viejo, 36.1% Tanzania
(notwithstanding the completion of the Acacia transaction on
September 17, 2019, we consolidated our interest in Acacia and
recorded a non-controlling interest of 36.1% in the income
statement for the entirety of the third quarter of 2019 as a matter
of convenience) and 40% South Arturo from cost of sales (63.1% of
South Arturo from July 1, 2019 onwards as a result of its
contribution to Nevada Gold Mines)), divided by attributable gold
ounces. The non-controlling interest of 20% Loulo-Gounkoto and
10.3% of Tongon is also removed from cost of sales and our
proportionate share of cost of sales attributable to equity method
investments (Kibali and Morila) is included commencing January 1,
2019, the effective date of the Merger. Also removes the
non-controlling interest of 38.5% Nevada Gold Mines from cost of
sales from July 1, 2019 onwards.
k. Per ounce
figures Cost of sales per ounce, total cash costs per
ounce, all-in sustaining costs per ounce and all-in costs per ounce
may not calculate based on amounts presented in this table due to
rounding.
l. Co-product
costs per ounce Total cash costs per ounce, all-in
sustaining costs per ounce and all-in costs per ounce presented on
a co-product basis removes the impact of by-product credits of our
gold production (net of non-controlling interest) calculated
as:
($
millions) |
For the three months ended |
|
For the nine months ended |
|
|
9/30/19 |
|
6/30/19 |
|
9/30/18 |
|
9/30/19 |
|
9/30/18 |
|
By-product credits |
48 |
|
23 |
|
31 |
|
95 |
|
105 |
|
Non-controlling interest |
(16 |
) |
(7 |
) |
(11 |
) |
(31 |
) |
(35 |
) |
By-product credits (net of non-controlling interest) |
32 |
|
16 |
|
20 |
|
64 |
|
70 |
|
Endnote 8“C1 cash costs” per
pound and “All-in sustaining costs” per pound are non-GAAP
financial performance measures. “C1 cash costs” per pound is based
on cost of sales but excludes the impact of depreciation and
royalties and includes treatment and refinement charges. “All-in
sustaining costs” per pound begins with “C1 cash costs” per pound
and adds further costs which reflect the additional costs of
operating a mine, primarily sustaining capital expenditures,
general & administrative costs and royalties and production
taxes. Barrick believes that the use of “C1 cash costs” per pound
and “all-in sustaining costs” per pound will assist investors,
analysts, and other stakeholders in understanding the costs
associated with producing copper, understanding the economics of
copper mining, assessing our operating performance, and also our
ability to generate free cash flow from current operations and to
generate free cash flow on an overall Company basis. “C1 cash
costs” per pound and “All-in sustaining costs” per pound are
intended to provide additional information only, do not have any
standardized meaning under IFRS, and may not be comparable to
similar measures of performance presented by other companies. These
measures should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS.
Further details on these non-GAAP measures are provided in the
MD&A accompanying Barrick’s financial statements filed from
time to time on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov.
Reconciliation of Copper Cost of Sales
to C1 cash costs and All-in sustaining costs, including on a per
pound basis
($
millions, except per pound information in dollars) |
For the three months ended |
|
For the nine months ended |
|
|
9/30/19 |
|
6/30/19 |
|
9/30/18 |
|
9/30/19 |
|
9/30/18 |
|
Cost of sales |
49 |
|
101 |
|
144 |
|
281 |
|
348 |
|
Depreciation/amortization |
(13 |
) |
(28 |
) |
(37 |
) |
(83 |
) |
(86 |
) |
Treatment and refinement charges |
18 |
|
25 |
|
43 |
|
74 |
|
103 |
|
Cash cost of sales applicable to equity method investments |
59 |
|
69 |
|
81 |
|
194 |
|
203 |
|
Less: royalties and production taxesa |
(5 |
) |
(9 |
) |
(10 |
) |
(26 |
) |
(29 |
) |
By-product credits |
(3 |
) |
(2 |
) |
(1 |
) |
(8 |
) |
(4 |
) |
Other |
0 |
|
(5 |
) |
0 |
|
(5 |
) |
0 |
|
C1 cash cost of sales |
105 |
|
151 |
|
220 |
|
427 |
|
535 |
|
General & administrative costs |
5 |
|
6 |
|
7 |
|
16 |
|
23 |
|
Rehabilitation - accretion and amortization |
2 |
|
3 |
|
5 |
|
8 |
|
13 |
|
Royalties and production taxesa |
5 |
|
9 |
|
10 |
|
26 |
|
29 |
|
Minesite exploration and evaluation costs |
1 |
|
1 |
|
1 |
|
4 |
|
2 |
|
Minesite sustaining capital expenditures |
48 |
|
48 |
|
65 |
|
155 |
|
153 |
|
Sustaining leases |
0 |
|
1 |
|
0 |
|
2 |
|
0 |
|
Inventory write-downs |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
All-in sustaining costs |
166 |
|
219 |
|
308 |
|
638 |
|
755 |
|
Pounds sold - consolidated basis (millions pounds) |
65 |
|
96 |
|
114 |
|
264 |
|
273 |
|
Cost of sales per poundb,c |
2.00 |
|
2.04 |
|
2.18 |
|
2.10 |
|
2.22 |
|
C1 cash cost per poundb |
1.62 |
|
1.59 |
|
1.94 |
|
1.62 |
|
1.97 |
|
All-in sustaining costs per poundb |
2.58 |
|
2.28 |
|
2.71 |
|
2.42 |
|
2.76 |
|
- For the three and nine month periods ended September 30,
2019, royalties and production taxes include royalties of $5
million and $26 million, respectively (June 30, 2019: $9
million and September 30, 2018: $11 million and $28 million,
respectively).
- Cost of sales per pound, C1 cash costs per pound and all-in
sustaining costs per pound may not calculate based on amounts
presented in this table due to rounding.
- Cost of sales applicable to copper per pound is calculated
using cost of sales including our proportionate share of cost of
sales attributable to equity method investments (Zaldívar and Jabal
Sayid), divided by consolidated copper pounds (including our
proportionate share of copper pounds from our equity method
investments).
Endnote 9The declaration and
payment of dividends is at the discretion of the Board of
Directors, and will depend on the Company’s financial results, cash
requirements, future prospects, and other factors deemed relevant
by the Board.
Endnote 10A 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. Barrick
believes that total cash cost per ounce 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.
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.
Endnote 11On a 100%
basis. Our 2019 attributable production forecast is 520 - 570
thousand ounces for Loulo-Gounkoto and 330 - 350 thousand ounces
for Kibali.
Endnote 12These five operations
are part of Nevada Gold Mines from July 1, 2019. Amounts
include Cortez (100%), Goldstrike (100%) and Turquoise Ridge (75%),
also known collectively as Barrick Nevada, from January 1, 2019 to
June 30, 2019, and Cortez, Carlin (which includes Goldstrike),
Turquoise Ridge (including Twin Creeks), Phoenix and Long Canyon on
a 61.5% basis from July 1, 2019 onwards as a result of the
formation of Nevada Gold Mines with Newmont Goldcorp on July 1,
2019.
Endnote 13Includes our 60%
share of South Arturo from January 1, 2019 to June 30, 2019 and
36.9% from July 1, 2019 onwards as a result of the formation of
Nevada Gold Mines with Newmont Goldcorp on July 1, 2019.
Endnote 14Formerly known as
Acacia Mining plc. On September 17, 2019, Barrick acquired
all of the shares of Acacia it did not own. Operating results
will be included at 100% from October 1, 2019 (notwithstanding the
completion of the Acacia transaction on September 17, 2019, we
consolidated our interest in Acacia and recorded a non-controlling
interest of 36.1% in the income statement for the entirety of the
third quarter of 2019 as a matter of convenience) up until the
GoT's 16% free-carried interest is made effective, and on an 84%
basis thereafter.
Endnote 15Other sites include
Lagunas Norte, Golden Sunlight, and Morila (40%) and excludes
Pierina which is mining incidental ounces as it enters closure. Due
to the planned ramp down of operations, we have ceased to include
production or non-GAAP cost metrics for Golden Sunlight or Morila
after the second quarter and will cease to include Lagunas Norte
after the end of the third quarter.
Endnote 16Total cash costs and
all-in sustaining costs per ounce include the impact of hedges
and/or costs allocated to non-operating sites.
Endnote 17Operating unit
guidance ranges reflect expectations at each individual operating
unit, and may not add up to the company-wide guidance range total.
Guidance ranges exclude Pierina which is mining incidental ounces
as it enters closure.
Endnote 18Includes corporate
administration costs.
Endnote 19Reflects impact on
the remaining three months of 2019.
Financial and Operating
Highlights
|
For the three months ended |
For the nine months ended |
|
9/30/19 |
|
6/30/19 |
|
% Change |
9/30/18 |
|
% Change |
9/30/19 |
|
9/30/18 |
|
% Change |
Financial
Results ($ millions) |
|
|
|
|
|
|
|
|
Revenues |
2,678 |
|
2,063 |
|
30 |
% |
1,837 |
|
46 |
% |
6,834 |
|
5,339 |
|
28 |
% |
Cost of sales |
1,889 |
|
1,545 |
|
22 |
% |
1,315 |
|
44 |
% |
4,924 |
|
3,643 |
|
35 |
% |
Net earnings (loss)a |
2,277 |
|
194 |
|
1,074 |
% |
(412 |
) |
653 |
% |
2,582 |
|
(348 |
) |
842 |
% |
Adjusted net earningsb |
264 |
|
154 |
|
71 |
% |
89 |
|
197 |
% |
602 |
|
340 |
|
77 |
% |
Adjusted EBITDAb |
1,297 |
|
972 |
|
33 |
% |
776 |
|
67 |
% |
3,271 |
|
2,274 |
|
44 |
% |
Adjusted EBITDA marginc |
48 |
% |
47 |
% |
2 |
% |
42 |
% |
14 |
% |
48 |
% |
43 |
% |
12 |
% |
Total capital expenditures -
sustainingd |
406 |
|
267 |
|
52 |
% |
256 |
|
59 |
% |
926 |
|
701 |
|
32 |
% |
Total project capital
expendituresd |
96 |
|
108 |
|
(11 |
)% |
131 |
|
(27 |
)% |
324 |
|
325 |
|
0 |
% |
Total consolidated capital
expendituresd,e |
502 |
|
379 |
|
32 |
% |
387 |
|
30 |
% |
1,255 |
|
1,026 |
|
22 |
% |
Net cash provided by operating
activities |
1,004 |
|
434 |
|
131 |
% |
706 |
|
42 |
% |
1,958 |
|
1,354 |
|
45 |
% |
Net cash provided by operating
activities marginf |
37 |
% |
21 |
% |
76 |
% |
38 |
% |
(3 |
)% |
29 |
% |
25 |
% |
16 |
% |
Free cash flowb |
502 |
|
55 |
|
813 |
% |
319 |
|
57 |
% |
703 |
|
328 |
|
114 |
% |
Net earnings (loss) per share
(basic and diluted) |
1.30 |
|
0.11 |
|
1,082 |
% |
(0.35 |
) |
471 |
% |
1.47 |
|
(0.30 |
) |
590 |
% |
Adjusted net earnings (basic)b
per share |
0.15 |
|
0.09 |
|
67 |
% |
0.08 |
|
88 |
% |
0.34 |
|
0.29 |
|
17 |
% |
Weighted average diluted common shares (millions of shares) |
1,756 |
|
1,752 |
|
0 |
% |
1,167 |
|
50 |
% |
1,751 |
|
1,167 |
|
50 |
% |
Operating
Results |
|
|
|
|
|
|
|
|
Gold production (thousands of
ounces)g |
1,306 |
|
1,353 |
|
(3 |
)% |
1,149 |
|
14 |
% |
4,026 |
|
3,265 |
|
23 |
% |
Gold sold (thousands of
ounces)g |
1,318 |
|
1,372 |
|
(4 |
)% |
1,204 |
|
9 |
% |
4,055 |
|
3,312 |
|
22 |
% |
Market gold price ($/oz) |
1,472 |
|
1,309 |
|
12 |
% |
1,213 |
|
21 |
% |
1,364 |
|
1,282 |
|
6 |
% |
Realized gold priceb,g
($/oz) |
1,476 |
|
1,317 |
|
12 |
% |
1,216 |
|
21 |
% |
1,365 |
|
1,284 |
|
6 |
% |
Gold cost of sales (Barrick’s
share)g,h ($/oz) |
1,065 |
|
964 |
|
10 |
% |
850 |
|
25 |
% |
991 |
|
859 |
|
15 |
% |
Gold total cash costsb,g
($/oz) |
710 |
|
651 |
|
9 |
% |
587 |
|
21 |
% |
663 |
|
588 |
|
13 |
% |
Gold all-in sustaining
costsb,g ($/oz) |
984 |
|
869 |
|
13 |
% |
785 |
|
25 |
% |
883 |
|
813 |
|
9 |
% |
Copper production (millions of
pounds)i |
112 |
|
97 |
|
15 |
% |
106 |
|
6 |
% |
315 |
|
274 |
|
15 |
% |
Copper sold (millions of
pounds)i |
65 |
|
96 |
|
(32 |
)% |
114 |
|
(43 |
)% |
264 |
|
273 |
|
(3 |
)% |
Market copper price
($/lb) |
2.63 |
|
2.77 |
|
(5 |
)% |
2.77 |
|
(5 |
)% |
2.74 |
|
3.01 |
|
(9 |
)% |
Realized copper priceb,i
($/lb) |
2.55 |
|
2.62 |
|
(3 |
)% |
2.76 |
|
(8 |
)% |
2.78 |
|
2.92 |
|
(5 |
)% |
Copper cost of sales
(Barrick’s share)i,j ($/lb) |
2.00 |
|
2.04 |
|
(2 |
)% |
2.18 |
|
(8 |
)% |
2.10 |
|
2.22 |
|
(5 |
)% |
Copper C1 cash costsb,i
($/lb) |
1.62 |
|
1.59 |
|
2 |
% |
1.94 |
|
(16 |
)% |
1.62 |
|
1.97 |
|
(18 |
)% |
Copper
all-in sustaining costsb,i ($/lb) |
2.58 |
|
2.28 |
|
13 |
% |
2.71 |
|
(5 |
)% |
2.42 |
|
2.76 |
|
(12 |
)% |
|
As at9/30/19 |
|
As at6/30/19 |
|
% Change |
As at9/30/18 |
|
% Change |
|
|
|
Financial
Position ($ millions) |
|
|
|
|
|
|
|
|
Debt (current and long-term) |
5,560 |
|
5,807 |
|
(4 |
)% |
5,745 |
|
(3 |
)% |
|
|
|
Cash and equivalents |
2,405 |
|
2,153 |
|
12 |
% |
1,697 |
|
42 |
% |
|
|
|
Debt, net of cash |
3,155 |
|
3,654 |
|
(14 |
)% |
4,048 |
|
(22 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net earnings (loss) represents net
earnings (loss) attributable to the equity holders of the
Company.
- Adjusted net earnings, adjusted
EBITDA, free cash flow, adjusted net earnings per share, realized
gold price, all-in sustaining costs, total cash costs, C1 cash
costs and realized copper price are non-GAAP financial performance
measures with no standardized meaning under IFRS and therefore may
not be comparable to similar measures presented by other issuers.
For further information and a detailed reconciliation of each
non-GAAP measure to the most directly comparable IFRS measure,
please see pages 77 to 98 of our third quarter MD&A.
- Represents adjusted EBITDA divided
by revenue.
- Amounts presented on a consolidated
cash basis. Project capital expenditures are included in our
calculation of all-in costs, but not included in our calculation of
all-in sustaining costs.
- Total consolidated capital
expenditures also includes capitalized interest.
- Represents net cash provided by
operating activities divided by revenue.
- Includes Tanzania on a 63.9% basis
(notwithstanding the completion of the Acacia transaction on
September 17, 2019, we consolidated our interest in Acacia and
recorded a non-controlling interest of 36.1% in the income
statement for the entirety of the third quarter of 2019 as a matter
of convenience), Pueblo Viejo on a 60% basis, South Arturo on a 60%
basis (36.9% of South Arturo from July 1, 2019 onwards as a result
of its contribution to Nevada Gold Mines), and Veladero on a 50%
basis, which reflects our equity share of production and sales.
Also includes Loulo-Gounkoto on an 80% basis, Kibali on a 45%
basis, Tongon on an 89.7% basis and Morila on a 40% basis, which
reflects our equity share of production and sales, commencing
January 1, 2019, the effective date of the Merger. Also
removes the non-controlling interest of 38.5% Nevada Gold Mines
from July 1, 2019 onwards.
- Gold cost of sales (Barrick’s
share) is calculated as cost of sales - gold on an attributable
basis (excluding sites in care and maintenance) divided by ounces
sold.
- Amounts reflect production and
sales from Jabal Sayid and Zaldívar on a 50% basis, which reflects
our equity share of production, and Lumwana.
- Copper cost of sales (Barrick’s
share) is calculated as cost of sales - copper plus our equity
share of cost of sales attributable to Zaldívar and Jabal Sayid
divided by pounds sold.
Production and Cost Summary -
Gold
|
For the three months
ended |
|
9/30/19 |
|
6/30/19 |
|
% Change |
9/30/18 |
|
% Change |
Nevada Gold Mines LLC (61.5%)a |
|
|
|
|
|
Gold produced (000s oz) |
535 |
|
526 |
|
2 |
% |
624 |
|
(14 |
)% |
Cost of sales ($/oz) |
1,027 |
|
842 |
|
22 |
% |
800 |
|
28 |
% |
Total cash costs ($/oz)b |
693 |
|
594 |
|
17 |
% |
526 |
|
32 |
% |
All-in sustaining costs ($/oz)b |
946 |
|
752 |
|
26 |
% |
640 |
|
48 |
% |
Cortez (61.5%)c |
|
|
|
|
|
Gold produced (000s oz) |
126 |
|
280 |
|
(55 |
)% |
326 |
|
(61 |
)% |
Cost of sales ($/oz) |
829 |
|
719 |
|
15 |
% |
630 |
|
32 |
% |
Total cash costs ($/oz)b |
570 |
|
489 |
|
17 |
% |
342 |
|
67 |
% |
All-in sustaining costs ($/oz)b |
772 |
|
561 |
|
38 |
% |
444 |
|
74 |
% |
Carlin (61.5%)d |
|
|
|
|
|
Gold produced (000s oz) |
278 |
|
181 |
|
54 |
% |
219 |
|
27 |
% |
Cost of sales ($/oz) |
1,007 |
|
1,116 |
|
(10 |
)% |
1,047 |
|
(4 |
)% |
Total cash costs ($/oz)b |
775 |
|
769 |
|
1 |
% |
738 |
|
5 |
% |
All-in sustaining costs ($/oz)b |
1,014 |
|
1,088 |
|
(7 |
)% |
892 |
|
14 |
% |
Turquoise Ridge (61.5%)e |
|
|
|
|
|
Gold produced (000s oz) |
82 |
|
65 |
|
26 |
% |
79 |
|
4 |
% |
Cost of sales ($/oz) |
1,077 |
|
665 |
|
62 |
% |
805 |
|
34 |
% |
Total cash costs ($/oz)b |
622 |
|
569 |
|
9 |
% |
711 |
|
(13 |
)% |
All-in sustaining costs ($/oz)b |
840 |
|
667 |
|
26 |
% |
757 |
|
11 |
% |
Phoenix (61.5%)f |
|
|
|
|
|
Gold produced (000s oz) |
25 |
|
|
|
|
|
Cost of sales ($/oz) |
2,186 |
|
|
|
|
|
Total cash costs ($/oz)b |
1,010 |
|
|
|
|
|
All-in sustaining costs ($/oz)b |
1,622 |
|
|
|
|
|
Long Canyon (61.5%)f |
|
|
|
|
|
Gold produced (000s oz) |
24 |
|
|
|
|
|
Cost of sales ($/oz) |
1,170 |
|
|
|
|
|
Total cash costs ($/oz)b |
353 |
|
|
|
|
|
All-in sustaining costs ($/oz)b |
714 |
|
|
|
|
|
Pueblo Viejo (60%) |
|
|
|
|
|
Gold produced (000s oz) |
139 |
|
124 |
|
12 |
% |
151 |
|
(8 |
)% |
Cost of sales ($/oz) |
807 |
|
852 |
|
(5 |
)% |
803 |
|
0 |
% |
Total cash costs ($/oz)b |
504 |
|
557 |
|
(10 |
)% |
517 |
|
(3 |
)% |
All-in sustaining costs ($/oz)b |
631 |
|
702 |
|
(10 |
)% |
688 |
|
(8 |
)% |
Loulo-Gounkoto (80%)g |
|
|
|
|
|
Gold produced (000s oz) |
153 |
|
147 |
|
4 |
% |
|
|
Cost of sales ($/oz) |
1,018 |
|
1,072 |
|
(5 |
)% |
|
|
Total cash costs ($/oz)b |
630 |
|
598 |
|
5 |
% |
|
|
All-in sustaining costs ($/oz)b |
966 |
|
811 |
|
19 |
% |
|
|
Kibali (45%)g |
|
|
|
|
|
Gold produced (000s oz) |
91 |
|
95 |
|
(4 |
)% |
|
|
Cost of sales ($/oz) |
1,187 |
|
868 |
|
37 |
% |
|
|
Total cash costs ($/oz)b |
554 |
|
540 |
|
3 |
% |
|
|
All-in sustaining costs ($/oz)b |
703 |
|
651 |
|
8 |
% |
|
|
Kalgoorlie (50%) |
|
|
|
|
|
Gold produced (000s oz) |
58 |
|
57 |
|
2 |
% |
75 |
|
(23 |
)% |
Cost of sales ($/oz) |
1,037 |
|
1,038 |
|
0 |
% |
923 |
|
12 |
% |
Total cash costs ($/oz)b |
856 |
|
846 |
|
1 |
% |
753 |
|
14 |
% |
All-in sustaining costs ($/oz)b |
1,170 |
|
1,204 |
|
(3 |
)% |
840 |
|
39 |
% |
|
|
|
|
|
|
|
|
|
|
|
Production and Cost Summary - Gold
(continued)
|
For the three months
ended |
|
9/30/19 |
|
6/30/19 |
|
% Change |
9/30/18 |
|
% Change |
Tongon (89.7%)g |
|
|
|
|
|
Gold produced (000s oz) |
62 |
|
61 |
|
2 |
% |
|
|
Cost of sales (per oz) |
1,396 |
|
1,562 |
|
(11 |
)% |
|
|
Total cash costs (per oz)a |
793 |
|
750 |
|
6 |
% |
|
|
All-in sustaining costs (per oz)a |
869 |
|
802 |
|
8 |
% |
|
|
Porgera (47.5%) |
|
|
|
|
|
Gold produced (000s oz) |
75 |
|
61 |
|
23 |
% |
53 |
|
42 |
% |
Cost of sales (per oz) |
1,024 |
|
1,032 |
|
(1 |
)% |
1,067 |
|
(4 |
)% |
Total cash costs (per oz)a |
868 |
|
893 |
|
(3 |
)% |
775 |
|
12 |
% |
All-in sustaining costs (per oz)a |
1,053 |
|
1,112 |
|
(5 |
)% |
1,084 |
|
(3 |
)% |
Veladero (50%) |
|
|
|
|
|
Gold produced (000s oz) |
58 |
|
75 |
|
(23 |
)% |
49 |
|
18 |
% |
Cost of sales ($/oz) |
1,243 |
|
1,186 |
|
5 |
% |
1,083 |
|
15 |
% |
Total cash costs ($/oz)b |
773 |
|
746 |
|
4 |
% |
581 |
|
33 |
% |
All-in sustaining costs ($/oz)b |
1,142 |
|
1,046 |
|
9 |
% |
995 |
|
15 |
% |
Hemlo |
|
|
|
|
|
Gold produced (000s oz) |
49 |
|
55 |
|
(11 |
)% |
41 |
|
20 |
% |
Cost of sales ($/oz) |
1,083 |
|
953 |
|
14 |
% |
1,095 |
|
(1 |
)% |
Total cash costs ($/oz)b |
953 |
|
822 |
|
16 |
% |
996 |
|
(4 |
)% |
All-in sustaining costs ($/oz)b |
1,280 |
|
1,015 |
|
26 |
% |
1,247 |
|
3 |
% |
Tanzania (63.9%)h |
|
|
|
|
|
Gold produced (000s oz) |
53 |
|
101 |
|
(48 |
)% |
87 |
|
(39 |
)% |
Cost of sales ($/oz) |
1,057 |
|
920 |
|
15 |
% |
842 |
|
26 |
% |
Total cash costs ($/oz)b |
788 |
|
659 |
|
20 |
% |
670 |
|
18 |
% |
All-in sustaining costs ($/oz)b |
947 |
|
792 |
|
20 |
% |
880 |
|
8 |
% |
Lagunas Norte |
|
|
|
|
|
Gold produced (000s oz) |
33 |
|
39 |
|
(15 |
)% |
64 |
|
(48 |
)% |
Cost of sales ($/oz) |
1,661 |
|
952 |
|
74 |
% |
720 |
|
131 |
% |
Total cash costs ($/oz)b |
1,327 |
|
732 |
|
81 |
% |
472 |
|
181 |
% |
All-in sustaining costs ($/oz)b |
1,422 |
|
998 |
|
42 |
% |
631 |
|
125 |
% |
Total Attributable to Barricki |
|
|
|
|
|
Gold produced (000s oz) |
1,306 |
|
1,353 |
|
(3 |
)% |
1,149 |
|
14 |
% |
Cost of sales ($/oz)j |
1,065 |
|
964 |
|
10 |
% |
850 |
|
25 |
% |
Total cash costs ($/oz)b |
710 |
|
651 |
|
9 |
% |
587 |
|
21 |
% |
All-in sustaining costs ($/oz)b |
984 |
|
869 |
|
13 |
% |
785 |
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
|
- Represents the combined results of
Cortez, Goldstrike (including our 60% share of South Arturo) and
our 75% interest in Turquoise Ridge until June 30, 2019.
Commencing July 1, 2019, the date Nevada Gold Mines was
established, the results represent our 61.5% interest in Cortez,
Carlin (including Goldstrike and 60% of South Arturo), Turquoise
Ridge (including Twin Creeks), Phoenix and Long Canyon.
- These are non-GAAP financial
performance measures with no standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. For further information and a detailed
reconciliation of each non-GAAP measure to the most directly
comparable IFRS measure, please see pages 77 to 98 of our
third quarter MD&A.
- On July 1, 2019, Cortez was
contributed to Nevada Gold Mines, a joint venture with Newmont
Goldcorp. As a result, the amounts presented are on an 100%
basis up until June 30, 2019, and on a 61.5% basis
thereafter.
- On July 1, 2019, Barrick's
Goldstrike and Newmont Goldcorp's Carlin were contributed to Nevada
Gold Mines and are now referred to as Carlin. As a result,
the amounts presented represent Goldstrike on a 100% basis
(including our 60% share of South Arturo) up until June 30, 2019,
and the combined results of Carlin and Goldstrike (including our
60% share of South Arturo) on a 61.5% basis thereafter.
- Barrick owned 75% of Turquoise
Ridge through the end of the second quarter of 2019, with our joint
venture partner, Newmont Goldcorp, owning the remaining 25%.
Turquoise Ridge was proportionately consolidated on the basis that
the joint venture partners that have joint control have rights to
the assets and obligations for the liabilities relating to the
arrangement. The figures presented in this table are based on our
75% interest in Turquoise Ridge until June 30, 2019. On July 1,
2019, Barrick's 75% interest in Turquoise Ridge and Newmont
Goldcorp's Twin Creeks and 25% interest in Turquoise Ridge were
contributed to Nevada Gold Mines. Starting July 1, 2019, the
results represent our 61.5% share of Turquoise Ridge and Twin
Creeks, now referred to as Turquoise Ridge.
- These sites were acquired as a
result of the formation of Nevada Gold Mines on July 1, 2019.
- These sites did not form a part of
the Barrick consolidated results in the three months ended June 30,
2018 as these sites were acquired as a result of the
Merger.
- Formerly known as Acacia Mining
plc. On September 17, 2019, Barrick acquired all of the
shares of Acacia it did not own. Operating results will be
included at 100% from October 1, 2019 (notwithstanding the
completion of the Acacia transaction on September 17, 2019, we
consolidated our interest in Acacia and recorded a non-controlling
interest of 36.1% in the income statement for the entirety of the
third quarter of 2019 as a matter of convenience) up until the
GoT's 16% free-carried interest is made effective, and on an 84%
basis thereafter.
- With the end of mining at Golden
Sunlight and Morila in the second quarter as previously reported,
we have ceased to include production or non-GAAP cost metrics for
these sites from July 1, 2019 onwards although these sites are
included in the Total Attributable to Barrick in the prior period
comparatives.
- Cost of sales per ounce (Barrick’s
share) is calculated as cost of sales - gold on an attributable
basis (excluding sites in care and maintenance) divided by gold
equity ounces sold.
Production and Cost Summary -
Copper
|
For the three months
ended |
|
9/30/19 |
|
6/30/19 |
|
% Change |
9/30/18 |
|
% Change |
Lumwana |
|
|
|
|
|
Copper production (millions lbs) |
65 |
|
49 |
|
33 |
% |
64 |
|
2 |
% |
Cost of sales ($/lb) |
2.04 |
|
2.07 |
|
(1 |
)% |
2.21 |
|
(8 |
)% |
C1 cash costs ($/lb)a |
1.83 |
|
1.70 |
|
8 |
% |
2.05 |
|
(11 |
)% |
All-in sustaining costs ($/lb)a |
3.66 |
|
2.78 |
|
32 |
% |
3.12 |
|
17 |
% |
Zaldívar
(50%) |
|
|
|
|
|
Copper production (millions lbs) |
32 |
|
32 |
|
0 |
% |
28 |
|
14 |
% |
Cost of sales ($/lb) |
2.18 |
|
2.32 |
|
(6 |
)% |
2.59 |
|
(16 |
)% |
C1 cash costs ($/lb)a |
1.55 |
|
1.61 |
|
(4 |
)% |
1.98 |
|
(22 |
)% |
All-in sustaining costs ($/lb)a |
1.91 |
|
1.85 |
|
3 |
% |
2.29 |
|
(17 |
)% |
Jabal Sayid (50%) |
|
|
|
|
|
Copper production (millions lbs) |
15 |
|
16 |
|
(6 |
)% |
14 |
|
7 |
% |
Cost of sales ($/lb) |
1.63 |
|
1.45 |
|
12 |
% |
1.66 |
|
(2 |
)% |
C1 cash costs ($/lb)a |
1.42 |
|
1.22 |
|
16 |
% |
1.56 |
|
(9 |
)% |
All-in sustaining costs ($/lb)a |
1.65 |
|
1.31 |
|
26 |
% |
1.67 |
|
(1 |
)% |
Total Copper |
|
|
|
|
|
Copper production (millions lbs) |
112 |
|
97 |
|
15 |
% |
106 |
|
6 |
% |
Cost of sales ($/lb)b |
2.00 |
|
2.04 |
|
(2 |
)% |
2.18 |
|
(8 |
)% |
C1 cash costs ($/lb)a |
1.62 |
|
1.59 |
|
2 |
% |
1.94 |
|
(16 |
)% |
All-in sustaining costs ($/lb)a |
2.58 |
|
2.28 |
|
13 |
% |
2.71 |
|
(5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
- These are non-GAAP financial
performance measures with no standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. For further information and a detailed
reconciliation of each non-GAAP measure to the most directly
comparable IFRS measure, please see pages 77 to 98 of our third
quarter MD&A.
- Cost of sales per pound (Barrick’s
share) is calculated as cost of sales - copper plus our equity
share of cost of sales attributable to Zaldívar and Jabal Sayid
divided by copper pounds sold.
Consolidated Statements of Income
Barrick
Gold Corporation(in millions of United States dollars, except per
share data) (Unaudited) |
Three months endedSeptember 30, |
|
Nine months endedSeptember 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenue (notes 5 and 6) |
$2,678 |
|
$1,837 |
|
$6,834 |
|
$5,339 |
|
Costs and expenses
(income) |
|
|
|
|
Cost of sales (notes 5 and
7) |
|
1,889 |
|
|
1,315 |
|
|
4,924 |
|
|
3,643 |
|
General and administrative
expenses |
|
68 |
|
|
71 |
|
|
181 |
|
|
212 |
|
Exploration, evaluation and
project expenses |
|
86 |
|
|
89 |
|
|
258 |
|
|
259 |
|
Impairment (reversals) charges
(notes 9B and 13) |
|
(872 |
) |
|
431 |
|
|
(857 |
) |
|
492 |
|
Loss on currency translation |
|
40 |
|
|
62 |
|
|
56 |
|
|
152 |
|
Closed mine rehabilitation |
|
5 |
|
|
(6 |
) |
|
46 |
|
|
(6 |
) |
Income from equity investees
(note 12) |
|
(38 |
) |
|
(19 |
) |
|
(116 |
) |
|
(45 |
) |
Loss (gain) on non-hedge
derivatives |
|
1 |
|
|
— |
|
|
— |
|
|
(3 |
) |
Other (income) expense (note 9A) |
|
(1,852 |
) |
|
16 |
|
|
(1,818 |
) |
|
55 |
|
Income (loss) before
finance costs and income taxes |
$3,351 |
|
($122 |
) |
$4,160 |
|
$580 |
|
Finance costs, net |
|
(125 |
) |
|
(159 |
) |
|
(363 |
) |
|
(428 |
) |
Income (loss) before
income taxes |
$3,226 |
|
($281 |
) |
$3,797 |
|
$152 |
|
Income tax expense (note 10) |
|
(791 |
) |
|
(105 |
) |
|
(999 |
) |
|
(422 |
) |
Net income (loss) |
$2,435 |
|
($386 |
) |
$2,798 |
|
($270 |
) |
Attributable
to: |
|
|
|
|
Equity holders of Barrick Gold
Corporation |
$2,277 |
|
($412 |
) |
$2,582 |
|
($348 |
) |
Non-controlling interests |
$158 |
|
$26 |
|
$216 |
|
$78 |
|
|
|
|
|
|
Earnings (loss) per
share data attributable to the equity holders of Barrick Gold
Corporation (note 8) |
|
|
|
|
Net income (loss) |
|
|
|
|
Basic |
$1.30 |
|
($0.35 |
) |
$1.47 |
|
($0.30 |
) |
Diluted |
$1.30 |
|
($0.35 |
) |
$1.47 |
|
($0.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Third Quarter Report 2019
available on our website are an integral part of these consolidated
financial statements.
Consolidated Statements of Comprehensive
Income
Barrick
Gold Corporation(in millions of United States dollars)
(Unaudited) |
Three months endedSeptember 30, |
|
Nine months endedSeptember 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net income (loss) |
$2,435 |
|
($386 |
) |
$2,798 |
|
($270 |
) |
Other comprehensive
(loss) income, net of taxes |
|
|
|
|
Items that may be
reclassified subsequently to profit or loss: |
|
|
|
|
Unrealized gains (losses) on
derivatives designated as cash flow hedges, net of tax $nil, ($1),
$nil and ($7) |
|
— |
|
|
5 |
|
|
— |
|
|
15 |
|
Realized (gains) losses on
derivatives designated as cash flow hedges, net of tax $nil, $1,
$nil and $1 |
|
— |
|
|
(1 |
) |
|
— |
|
|
(1 |
) |
Currency translation adjustments,
net of tax $nil, $nil, $nil and $nil |
|
(1 |
) |
|
(6 |
) |
|
(4 |
) |
|
(4 |
) |
Items that will not be
reclassified to profit or loss: |
|
|
|
|
Actuarial gain (loss) on post
employment benefit obligations, net of tax $nil, $nil, $nil and
$nil |
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
Net unrealized change on equity
investments, net of tax $nil, $nil, $nil and $nil |
|
53 |
|
|
(4 |
) |
|
61 |
|
|
(12 |
) |
Net realized change on equity investments, net of tax $nil, $nil,
$nil and $nil |
|
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
Total other comprehensive income (loss) |
|
52 |
|
|
(6 |
) |
|
56 |
|
|
(1 |
) |
Total comprehensive income (loss) |
$2,487 |
|
($392 |
) |
$2,854 |
|
($271 |
) |
Attributable
to: |
|
|
|
|
Equity holders of Barrick Gold
Corporation |
$2,329 |
|
($418 |
) |
$2,638 |
|
($349 |
) |
Non-controlling interests |
$158 |
|
$26 |
|
$216 |
|
$78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Third Quarter Report 2019
available on our website are an integral part of these consolidated
financial statements.
Consolidated Statements of Cash Flow
Barrick
Gold Corporation (in millions of United States dollars)
(Unaudited) |
Three months endedSeptember 30, |
|
Nine months endedSeptember 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
OPERATING
ACTIVITIES |
|
|
|
|
Net income (loss) |
$2,435 |
|
($386 |
) |
$2,798 |
|
($270 |
) |
Adjustments for the following
items: |
|
|
|
|
Depreciation |
|
559 |
|
|
363 |
|
|
1,460 |
|
|
1,016 |
|
Finance costs |
|
129 |
|
|
163 |
|
|
381 |
|
|
440 |
|
Impairment (reversals) charges (notes 9B and 13) |
|
(872 |
) |
|
431 |
|
|
(857 |
) |
|
492 |
|
Income tax expense (note 10) |
|
791 |
|
|
105 |
|
|
999 |
|
|
422 |
|
Remeasurement of Turquoise Ridge to fair value |
|
(1,886 |
) |
|
— |
|
|
(1,886 |
) |
|
— |
|
Gain on sale of non-current assets |
|
(15 |
) |
|
(1 |
) |
|
(27 |
) |
|
(49 |
) |
Loss on currency translation |
|
40 |
|
|
62 |
|
|
56 |
|
|
152 |
|
Change in working capital
(note 11) |
|
67 |
|
|
167 |
|
|
(263 |
) |
|
(69 |
) |
Other
operating activities (note 11) |
|
(126 |
) |
|
(63 |
) |
|
(112 |
) |
|
(204 |
) |
Operating cash flows before
interest and income taxes |
|
1,122 |
|
|
841 |
|
|
2,549 |
|
|
1,930 |
|
Interest paid |
|
(31 |
) |
|
(29 |
) |
|
(196 |
) |
|
(212 |
) |
Income
taxes paid |
|
(87 |
) |
|
(106 |
) |
|
(395 |
) |
|
(364 |
) |
Net cash provided by operating activities |
|
1,004 |
|
|
706 |
|
|
1,958 |
|
|
1,354 |
|
INVESTING
ACTIVITIES |
|
|
|
|
Property, plant and
equipment |
|
|
|
|
Capital expenditures (note 5) |
|
(502 |
) |
|
(387 |
) |
|
(1,255 |
) |
|
(1,026 |
) |
Sales proceeds |
|
13 |
|
|
1 |
|
|
31 |
|
|
53 |
|
Investment (purchases)
proceeds |
|
3 |
|
|
— |
|
|
(4 |
) |
|
(39 |
) |
Cash acquired in merger |
|
— |
|
|
— |
|
|
751 |
|
|
— |
|
Other
investing activities (note 11) |
|
103 |
|
|
— |
|
|
165 |
|
|
(5 |
) |
Net cash used in investing activities |
|
(383 |
) |
|
(386 |
) |
|
(312 |
) |
|
(1,017 |
) |
FINANCING
ACTIVITIES |
|
|
|
|
Lease repayments |
|
(5 |
) |
|
— |
|
|
(23 |
) |
|
— |
|
Debt repayments |
|
(264 |
) |
|
(649 |
) |
|
(280 |
) |
|
(680 |
) |
Dividends |
|
(67 |
) |
|
(31 |
) |
|
(461 |
) |
|
(94 |
) |
Funding from non-controlling
interests |
|
102 |
|
|
5 |
|
|
116 |
|
|
17 |
|
Disbursements to
non-controlling interests |
|
(133 |
) |
|
— |
|
|
(161 |
) |
|
(82 |
) |
Other financing
activities |
|
(2 |
) |
|
(29 |
) |
|
(2 |
) |
|
(29 |
) |
Net cash used in financing activities |
|
(369 |
) |
|
(704 |
) |
|
(811 |
) |
|
(868 |
) |
Effect of exchange rate changes on cash and
equivalents |
|
— |
|
|
(4 |
) |
|
(1 |
) |
|
(6 |
) |
Net increase (decrease) in
cash and equivalents |
|
252 |
|
|
(388 |
) |
|
834 |
|
|
(537 |
) |
Cash and equivalents at the beginning of
period |
|
2,153 |
|
|
2,085 |
|
|
1,571 |
|
|
2,234 |
|
Cash and equivalents at the end of period |
$2,405 |
|
$1,697 |
|
$2,405 |
|
$1,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Third Quarter Report 2019
available on our website are an integral part of these consolidated
financial statements.
Consolidated Balance Sheets
Barrick
Gold Corporation (in millions of United States dollars)
(Unaudited) |
As at September 30, |
|
As at December 31, |
|
|
|
2019 |
|
|
2018 |
|
ASSETS |
|
|
Current assets |
|
|
Cash and equivalents (note 14A) |
$2,405 |
|
$1,571 |
|
Accounts receivable |
|
311 |
|
|
248 |
|
Inventories |
|
2,265 |
|
|
1,852 |
|
Other current assets |
|
529 |
|
|
307 |
|
Total current assets |
$5,510 |
|
$3,978 |
|
Non-current assets |
|
|
Equity in investees (note 12) |
|
4,474 |
|
|
1,234 |
|
Property, plant and equipment |
|
24,758 |
|
|
12,826 |
|
Goodwill |
|
4,798 |
|
|
1,176 |
|
Intangible assets |
|
227 |
|
|
227 |
|
Deferred income tax assets |
|
334 |
|
|
259 |
|
Non-current portion of inventory |
|
2,434 |
|
|
1,696 |
|
Other assets |
|
1,332 |
|
|
1,235 |
|
Total assets |
$43,867 |
|
$22,631 |
|
LIABILITIES AND
EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$1,337 |
|
$1,101 |
|
Debt (note 14B) |
|
66 |
|
|
43 |
|
Current income tax liabilities |
|
133 |
|
|
203 |
|
Other current liabilities |
|
308 |
|
|
321 |
|
Total current liabilities |
$1,844 |
|
$1,668 |
|
Non-current liabilities |
|
|
Debt (note 14B) |
|
5,494 |
|
|
5,695 |
|
Provisions |
|
3,664 |
|
|
2,904 |
|
Deferred income tax liabilities |
|
2,692 |
|
|
1,236 |
|
Other liabilities |
|
1,773 |
|
|
1,743 |
|
Total liabilities |
$15,467 |
|
$13,246 |
|
Equity |
|
|
Capital stock (note 16) |
$29,228 |
|
$20,883 |
|
Deficit |
|
(11,020 |
) |
|
(13,453 |
) |
Accumulated other comprehensive loss |
|
(102 |
) |
|
(158 |
) |
Other |
|
2,043 |
|
|
321 |
|
Total equity attributable to Barrick Gold Corporation
shareholders |
$20,149 |
|
$7,593 |
|
Non-controlling interests |
|
8,251 |
|
|
1,792 |
|
Total equity |
$28,400 |
|
$9,385 |
|
Contingencies and commitments (notes 5 and 17) |
|
|
Total liabilities and equity |
$43,867 |
|
$22,631 |
|
|
|
|
|
|
|
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Third Quarter Report 2019
available on our website are an integral part of these consolidated
financial statements.
Consolidated Statements of Changes in
Equity
|
|
|
|
|
Barrick
Gold Corporation |
|
Attributable to equity holders of the company |
|
|
(in
millions of United States dollars) (Unaudited) |
CommonShares(inthousands) |
|
Capitalstock |
|
Retaineddeficit |
|
Accumulatedothercomprehensiveincome (loss)1 |
|
Other2 |
|
Total equityattributable toshareholders |
|
Non-controllinginterests |
|
Totalequity |
|
At January 1, 2019 |
1,167,847 |
|
$20,883 |
|
($13,453 |
) |
($158 |
) |
$321 |
|
$7,593 |
|
$1,792 |
|
$9,385 |
|
Net income |
— |
|
|
— |
|
|
2,582 |
|
|
— |
|
|
— |
|
|
2,582 |
|
|
216 |
|
|
2,798 |
|
Total other comprehensive income |
— |
|
|
— |
|
|
— |
|
|
56 |
|
|
— |
|
|
56 |
|
|
— |
|
|
56 |
|
Total comprehensive income |
— |
|
|
— |
|
|
2,582 |
|
|
56 |
|
|
— |
|
|
2,638 |
|
|
216 |
|
|
2,854 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(131 |
) |
|
— |
|
|
— |
|
|
(131 |
) |
|
— |
|
|
(131 |
) |
Merger with Randgold Resources Limited |
583,669 |
|
|
7,903 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,903 |
|
|
874 |
|
|
8,777 |
|
Nevada Gold Mines JV with Newmont Goldcorp Corporation |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,645 |
|
|
1,645 |
|
|
5,909 |
|
|
7,554 |
|
Acquisition of 36.1% of Acacia Mining plc |
24,837 |
|
|
423 |
|
|
— |
|
|
— |
|
|
70 |
|
|
493 |
|
|
(495 |
) |
|
(2 |
) |
Issued on exercise of stock options |
130 |
|
|
1 |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
Funding from non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
116 |
|
|
116 |
|
Other decrease in non-controlling interest |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(161 |
) |
|
(161 |
) |
Dividend reinvestment plan (note 16) |
1,299 |
|
|
18 |
|
|
(18 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Share-based payments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
7 |
|
|
7 |
|
|
— |
|
|
7 |
|
Total transactions with owners |
609,935 |
|
|
8,345 |
|
|
(149 |
) |
|
— |
|
|
1,722 |
|
|
9,918 |
|
|
6,243 |
|
|
16,161 |
|
At September 30, 2019 |
1,777,782 |
|
$29,228 |
|
($11,020 |
) |
($102 |
) |
$2,043 |
|
$20,149 |
|
$8,251 |
|
$28,400 |
|
|
|
|
|
|
|
|
|
|
At December 31, 2017 |
1,166,577 |
|
$20,893 |
|
($11,759 |
) |
($169 |
) |
$321 |
|
$9,286 |
|
$1,781 |
|
$11,067 |
|
Impact of adopting IFRS 15 on January 1, 2018 |
— |
|
|
— |
|
|
64 |
|
|
— |
|
|
— |
|
|
64 |
|
|
— |
|
|
64 |
|
At January 1, 2018 (restated) |
1,166,577 |
|
$20,893 |
|
($11,695 |
) |
($169 |
) |
$321 |
|
$9,350 |
|
$1,781 |
|
$11,131 |
|
Net (loss) income |
— |
|
|
— |
|
|
(348 |
) |
|
— |
|
|
— |
|
|
(348 |
) |
|
78 |
|
|
(270 |
) |
Total other comprehensive income (loss) |
— |
|
|
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
|
(1 |
) |
|
— |
|
|
(1 |
) |
Total comprehensive (loss) income |
— |
|
|
— |
|
|
(348 |
) |
|
(1 |
) |
|
— |
|
|
(349 |
) |
|
78 |
|
|
(271 |
) |
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
|
|
— |
|
|
(94 |
) |
|
— |
|
|
— |
|
|
(94 |
) |
|
— |
|
|
(94 |
) |
Issued on exercise of stock options |
20 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Funding from non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17 |
|
|
17 |
|
Other decrease in non-controlling interests |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(97 |
) |
|
(97 |
) |
Dividend reinvestment plan |
996 |
|
|
11 |
|
|
(11 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total transactions with owners |
1,016 |
|
|
11 |
|
|
(105 |
) |
|
— |
|
|
— |
|
|
(94 |
) |
|
(80 |
) |
|
(174 |
) |
At September 30, 2018 |
1,167,593 |
|
$20,904 |
|
($12,148 |
) |
($170 |
) |
$321 |
|
$8,907 |
|
$1,779 |
|
$10,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Includes cumulative translation losses at
September 30, 2019: $87 million (September 30, 2018:
$77 million).2 Includes additional paid-in capital as at
September 30, 2019: $1,998 million (December 31,
2018: $283 million; September 30, 2018: $283 million) and
convertible borrowings - equity component as at September 30,
2019: $38 million (December 31, 2018: $38 million;
September 30, 2018: $38 million).The notes to these unaudited
condensed interim financial statements, which are contained in the
Third Quarter Report 2019 available on our website are an integral
part of these consolidated financial statements.
Corporate Office |
Enquiries |
|
|
Barrick Gold Corporation |
President
and Chief Executive Officer |
161 Bay
Street, Suite 3700 |
Mark
Bristow |
Toronto,
Ontario M5J 2S1 |
+1 647
205 7694 |
Canada |
+44 788
071 1386 |
|
|
Telephone: +1 416 861-9911 |
Senior
Executive Vice-President and |
Email:
investor@barrick.com |
Chief
Financial Officer |
Website:
www.barrick.com |
Graham
Shuttleworth |
|
+1 647
262 2095 |
|
+44 779
771 1338 |
Shares Listed |
+44 1534
735 333 |
|
|
GOLD The New York Stock Exchange |
Investor
and Media Relations |
ABX The Toronto Stock Exchange |
Kathy du
Plessis |
|
+44 20
7557 7738 |
|
Email:
barrick@dpapr.com |
Transfer Agents and Registrars |
|
|
|
AST Trust Company (Canada) |
|
P.O. Box
700, Postal Station B |
|
Montreal,
Quebec H3B 3K3 |
|
or |
|
American
Stock Transfer & Trust Company, LLC |
6201 – 15
Avenue |
|
Brooklyn,
New York 11219 |
|
|
|
Telephone: 1-800-387-0825 |
|
Fax:
1-888-249-6189 |
|
Email:
inquiries@astfinancial.com |
|
Website:
www.astfinancial.com |
|
Cautionary Statement on Forward-Looking
Information
Certain information contained or incorporated by
reference in this press release, including any information as to
our strategy, projects, 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 "on track", “deliver”,
heading for", "working on", "points to", "plan", "progresses",
"upside", “opportunities”, "scheduled for", "objective",
"expected", “potential”, "underway", “strategy”, “will”, "being
evaluated", "proposed", "aims", "developing", "continues" and
similar expressions identify forward-looking statements. In
particular, this press release contains forward-looking statements
including, without limitation, with respect to: Barrick’s
forward-looking production and cost guidance; timing of completion
of a feasibility study for the potential plant expansion at Pueblo
Viejo; potential mineralization, including at Fourmile; potential
extensions to life of mine, including at Porgera, Veladero, Pueblo
Viejo, Hemlo, Loulo Gounkoto and Kibali; timing of completion of
Barrick’s five- and ten-year plans; dispositions of non-core
assets, and potential proceeds from any such transactions;
potential exploration targets and mineral resource potential,
including reserve replenishment; opportunities to deliver value for
Barrick’s owners and stakeholders; Barrick’s energy and
sustainability strategies, and potential reductions to Barrick’s
carbon footprint and costs; potential efficiency improvements and
capital projects initiatives; future investments in community
projects and contributions to local economies; the new partnership
between Barrick and the GoT and the agreement to resolve all
outstanding disputes between Acacia and the GoT; expectations
regarding settlement negotiations with the Government of Mali;
potential advancements in automation technology; Barrick's human
capital management and employee development plans; future
engagement with the Government of the Democratic Republic of the
Congo in respect of the new Mining Code introduced in 2018 and
related regulations; and expectations regarding future price
assumptions, financial performance and other outlook or
guidance.
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 the Company 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: fluctuations in the spot
and forward price of gold, copper or certain other commodities
(such as silver, diesel fuel, natural gas and electricity); the
speculative nature of mineral exploration and development; changes
in mineral production performance, exploitation and exploration
successes; risks associated with projects in the early stages of
evaluation and for which additional engineering and other analysis
is required; whether the agreement to settle all disputes between
Acacia and the Government of Tanzania (the “GoT”) will be legalized
and executed by the GoT; the Company’s ability to successfully
re-integrate Acacia’s operations; the benefits expected from recent
transactions being realized, including Nevada Gold Mines;
diminishing quantities or grades of reserves; 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; failure to comply with environmental and health
and safety laws and regulations; non-renewal of key licenses by
governmental authorities; timing of receipt of, or failure to
comply with, necessary permits and approvals; uncertainty whether
some or all of Barrick's targeted investments and projects will
meet the Company’s capital allocation objectives and internal
hurdle rate; 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; adverse changes
in our credit ratings; the impact of inflation; fluctuations in the
currency markets; changes in U.S. dollar interest rates; risks
arising from holding derivative instruments; 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 Canada, the United States and
other jurisdictions in which the Company or its affiliates do or
may carry on business in the future; lack of certainty with respect
to foreign legal systems, corruption and other factors that are
inconsistent with the rule of law; risks associated with illegal
and artisanal mining; the risks of operating in jurisdictions where
infectious diseases present major health care issues; disruption of
supply routes which may cause delays in construction and mining
activities; damage to the Company’s reputation due to the actual or
perceived occurrence of any number of events, including negative
publicity with respect to the Company’s handling of environmental
matters or dealings with community groups, whether true or not; the
possibility that future exploration results will not be consistent
with the Company’s expectations; risks that exploration data may be
incomplete and considerable additional work may be required to
complete further evaluation, including but not limited to drilling,
engineering and socioeconomic studies and investment; risk of loss
due to acts of war, terrorism, sabotage and civil disturbances;
litigation and legal and administrative proceedings; contests over
title to properties, particularly title to undeveloped properties,
or over access to water, power and other required infrastructure;
business opportunities that may be presented to, or pursued by, the
Company; our ability to successfully integrate acquisitions or
complete divestitures; risks associated with working with partners
in jointly controlled assets; 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. We disclaim 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.
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