The proposed expansion of Pueblo Viejo, already one of the world’s
Tier One1 gold mines, includes an expansion of the mine’s
processing plant and tailings capacity with an estimated
initial capital investment of more than a billion dollars
(100% basis) and the potential to extend the life of the mine into
the 2030s and beyond2. Barrick expects to complete a
feasibility study for the expansion project during 2020. The
proposed capital investment would more than double the contribution
the mine has already made to the Dominican Republic.
Barrick Gold Corporation’s President and Chief
Executive Officer Mark Bristow, speaking at a local media briefing
here today, said the proposed investment was further evidence of
the joint venture partners’ long-term commitment to the social and
economic development of the Dominican Republic.
“We look forward to continue making a
significant and growing contribution to our communities and other
stakeholders and to unlocking the enormous value of its mineral
potential while addressing the historical third-party environmental
issues,” he said. Barrick manages the mine which is a joint
venture with Newmont Goldcorp.
Bristow noted that the joint venture partners
had already invested $5.2 billion in Pueblo Viejo, which
represents almost 20% of the total foreign direct investment in the
Dominican Republic over the past 10 years. Direct cash taxes
paid by the mine amounted to $1.6 billion which represents 57%
of the cash distributions compared to 43% earned by the joint
venture partners. Since 2013 the mine has accounted for 30%
of the country’s exports, and generated a net added value of
$5.7 billion and a total net added value of $8.5 billion,
equal to 2% of the Dominican gross domestic product.
“Some 96% of the mine’s employees are Dominicans
and this has also had a significant impact on the lives of the more
than 90,000 people in neighboring communities who have benefited
from its community upliftment programs. It has also promoted
the development of the local economy, spending more than
$123 million with local contractors and suppliers over the
past six years,” Bristow said.
“We look forward to building on what we have
already achieved here, and to continue creating value for all our
stakeholders, notably the government and people of the Dominican
Republic and our shareholders.”
Enquiries:
Mark BristowPresident and CEO+1 647 205 7694+44 788 071 1386 |
Mark HillChief Operating Officer LATAM and Asia Pacific+1 (416) 307
7429+1 (416) 358 4667 |
Kathy du PlessisRelations with Media and Investors+44 20 7557
7738barrick@dpapr.com |
Website: www.barrick.com
About Barrick
On January 1, 2019, a new Barrick was born as a
result of the merger between Barrick Gold Corporation and Randgold
Resources Limited. Shares in the new company trade on NYSE (GOLD)
and TSX (ABX).
The merger has created a sector-leading gold
company which owns five of the industry’s Top 10 Tier One gold
assets Cortez and Goldstrike in Nevada, in the United States
(100%); Kibali in the Democratic Republic of the Congo (45%);
Loulo-Gounkoto in Mali (80%); and Pueblo Viejo in the Dominican
Republic (60%) and two with the potential to become the gold assets
of the first level: Goldrush / Fourmile (100%) and Turquoise Ridge
(75%), both in the United States. With mining operations and
projects in 15 countries, including Argentina, Australia, Canada,
Chile, the Ivory Coast, the Democratic Republic of the Congo, the
Dominican Republic, Mali, Papua New Guinea, Peru, Saudi Arabia,
Senegal, the United States and Zambia, Barrick has the lowest total
cash cost position among its senior gold peers and a diversified
asset portfolio positioned for growth in many of the world's most
prolific gold districts.
Endnotes:
- A 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.
- For additional detail regarding Pueblo Viejo, see the Technical
Report on the Pueblo Viejo mine, Sanchez Ramirez Province,
Dominican Republic, dated March 19, 2018, and filed on SEDAR at
www.sedar.com and EDGAR at www.sec.gov on March 23, 2018.
Technical
Information
The scientific and technical information contained in this
press release has been reviewed and approved by John Steele, CIM,
Metallurgy, Engineering and Capital Projects Executive, who is a
“Qualified Person” as defined in National Instrument 43-101 –
Standards of Disclosure for Mineral Projects.
Cautionary Statement on Forward-Looking
Information
Certain information contained in this press
release, including any information as to Barrick’s strategy, plans,
or future operating or environmental performance, constitutes
“forward-looking statements”. All statements, other than statements
of historical fact, are forward-looking statements. The words
“proposed” “will”, “future”, “expansion”, “estimated”, “extend”,
“expect”, and similar expressions identify forward-looking
statements. In particular, this press release contains
forward-looking statements including, without limitation, with
respect to proposed investments in the Dominican Republic and the
potential for the expansion project at Pueblo Viejo to increase
throughput, convert resources into reserves and extend the life of
the mine.
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 the Pueblo Viejo expansion project
and other projects in the early stages of evaluation, and for which
additional engineering and other analysis is required to fully
assess their impact; 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; timing of
receipt of, or failure to comply with, necessary permits and
approvals; uncertainty whether some or all of 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; 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 the Dominican Republic, 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; 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;
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.
The Company disclaims 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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