In a release issued earlier today under the same headline
by Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX), certain
prior quarter and prior-year figures included in the "Financial and
Operating Highlights" table were inverted or duplicated. This
correction does not change any other information in the release.
Complete corrected text follows:
Second Quarter 2021 ResultsAll amounts
expressed in US dollars
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) said today it had
completed or progressed major capital projects in the second
quarter of the year while its globally broadened exploration
programmes delivered substantial reserve gains and stepped up the
search for new world-class discoveries.
The new Phase 6 heap leach facility at Veladero has been
commissioned on time while the third shaft at Turquoise Ridge in
Nevada has been sunk to its final depth. Also in Nevada, the
updated Goldrush feasibility study has confirmed that this is a
world-class asset which meets Barrick’s investment criteria. In the
Dominican Republic, Pueblo Viejo and its stakeholders have agreed
on a government-led independent, strategic environmental assessment
of Pueblo Viejo’s Mine Life Extension Project, part of a $1.3
billion1 expansion project which is expected to allow Barrick to
convert approximately 9 million ounces of measured and indicated
resources to proven and probable reserves, extending this Tier One2
mine’s life to 2040 and beyond.3 In Mali, Africa, the
Loulo-Gounkoto complex’s third underground mine has delivered its
first ore.
The success of ongoing brownfields exploration indicates that
the North America and Africa & Middle East regions will both
more than replace reserves after mining depletion this year.
Greenfields programs are targeting new discoveries across the
Barrick portfolio, which has been extended to include Egypt,
Guyana, Japan, Senegal and Tanzania.
“The gold mining industry’s chronic tendency to harvest the gold
price instead of investing in the future has resulted in declining
reserves and a shortage of high-quality development projects. At
Barrick, on the other hand, a strong exploration culture combined
with its sustainable profitability strategy is expanding its asset
base as we look to discover exciting new opportunities,” says
president and chief executive Mark Bristow.
“We’re constantly pumping new prospects into a development and
project pipeline which already contains Goldrush, Fourmile and
Robertson in Nevada, Donlin in Alaska, as well as new
Loulo-Gounkoto and Kibali targets in Africa.
“The fact is that the industry has not been replacing what it’s
been mining. Barrick, on the other hand, is running its business
for the long term instead of focusing on short-term gains and
working to extend its resource-based 10-year plans to 15 and even
20 years,” he says.
Production for the second quarter of 2021 was impacted by a
mechanical mill failure at Carlin but Barrick remains on course to
achieve its guidance for the year. Net earnings per share were
23 cents and adjusted net earnings7 were 29 cents. A
dividend of 9 cents per share has been declared for the quarter,
which also sees the delivery of the $250 million (approximately 14
cents per share14) second tranche of the capital return. The
balance sheet remained strong with cash in excess of $5 billion at
the end of the quarter.
On the environmental front, Bristow noted the group had
continued to meet and exceed its targets on water recycling as well
as lowering energy and greenhouse gas intensity per tonne of ore
processed.
Financial and Operating
Highlights
Financial Results |
Q2 2021 |
Q1 2021 |
Q2 2020 |
Realized gold
price4,5
($ per ounce) |
1,820 |
|
1,777 |
|
1,725 |
|
Net earnings6
($
millions) |
411 |
|
538 |
|
357 |
|
Adjusted net earnings7
($
millions) |
513 |
|
507 |
|
415 |
|
Net cash provided by operating activities ($ millions) |
639 |
|
1,302 |
|
1,031 |
|
Free cash
flow8
($ millions) |
(19) |
|
763 |
|
522 |
|
Net earnings per
share
($) |
0.23 |
|
0.30 |
|
0.20 |
|
Adjusted net
earnings
per share7 ($) |
0.29 |
|
0.29 |
|
0.23 |
|
Attributable capital
expenditures9 ($ millions) |
518 |
|
424 |
|
402 |
|
Operating
Results |
Q2 2021 |
Q1 2021 |
Q2 2020 |
Gold |
|
|
|
Production5
(000s of ounces) |
1,041 |
|
1,101 |
|
1,149 |
|
Cost of sales (Barrick's share)5,10
($ per ounce) |
1,107 |
|
1,073 |
|
1,075 |
|
Total cash
costs5,11
($ per ounce) |
729 |
|
716 |
|
716 |
|
All-in sustaining
costs5,11
($ per ounce) |
1,087 |
|
1,018 |
|
1,031 |
|
Copper |
|
|
|
Production5
(millions of pounds) |
96 |
|
93 |
|
120 |
|
Cost of sales (Barrick's share)5,10
($ per pound) |
2.43 |
|
2.11 |
|
2.08 |
|
C1 cash
costs5,12
($ per pound) |
1.83 |
|
1.60 |
|
1.55 |
|
All-in sustaining
costs5,12
($ per pound) |
2.74 |
|
2.26 |
|
2.15 |
|
Key Performance Indicators
- Steady Q2 performance keeps Barrick
on guidance despite mechanical mill failure at Carlin
- Significant contribution from copper
assets continues to differentiate Barrick from peers
- Updated Goldrush feasibility study
delivers a robust project that meets our investment criteria;
Notice of Intent expected to be published imminently
- Ongoing evaluation of Goldrush has
the potential to further enhance project
- Successful commissioning of Phase 6
at Veladero, in line with guidance
- Third shaft at Turquoise Ridge
reaches final depth
- Dominican Republic Minister of Mines
announces Government-led independent, strategic environmental
assessment of Pueblo Viejo’s Mine Life Extension Project
- Strong balance sheet with cash
balance in excess of $5 billion
- Net earnings per share of
23 cents and adjusted net earnings per share7 of
29 cents
- Focus on safety delivers 50%
reduction in Lost Time Injuries (LTI)13
- Reduction in energy and greenhouse
gas intensity per tonne of ore processed13
- Ongoing brownfields programs point
to mine life extensions and strong reserve replacement after mining
depletion
- Exploration portfolio expanded with
new property positions in Egypt, Guyana, Japan, Senegal and
Tanzania
- Greenfields programs focus on new
discoveries and opportunities across our priority regions
- Sale of Lagunas Norte represents
further step in portfolio simplification and value realisation
- Continued progress at Porgera
following meeting of key PNG stakeholders
- Barrick declares $0.09 quarterly
dividend per share and adds second $250 million capital return
tranche (~14 cents per share14)
Q2 2021 Results Presentation
President and chief executive Mark Bristow will host a virtual
presentation on the results at 11:00 EDT, with an interactive
webinar linked to a conference call. Participants will be able to
ask questions.
Go to the webinarUS
and Canada (toll-free), 1 800 319 4610UK (toll-free), 0808 101
2791International (toll), +1 416 915 3239
The Q2 2021 presentation materials will be available on
Barrick’s website at www.barrick.com and the
webinar will remain on the website for later viewing.
SECOND $250 MILLION RETURN OF CAPITAL TRANCHE AND
QUARTERLY DIVIDEND
Barrick today announced that the second $250 million
tranche (approximately $0.14 per
share14) of the return of capital
distribution totalling $750 million will be paid on September 15,
2021 to shareholders of record at the close of business on August
31, 2021.
This will complement the $0.09 per share dividend declared by
the Barrick Board of Directors for the second quarter, which will
also be paid on September 15, 2021 to shareholders of record at the
close of business on August 31, 2021.15
This follows the approval by shareholders at Barrick’s Annual
and Special Meeting on May 4, 2021 of the total $750 million return
of capital distribution. After payment of the first $250 million
tranche on June 15, 2021 and the second distribution to be made on
September 15, 2021, the remaining $250 million is expected to be
distributed to shareholders of record on a date to be determined in
November 2021.
“We are pleased to be able to provide our shareholders with one
of the leading returns in the industry whilst at the same time
continuing to invest in the future growth and development of our
assets, underpinned by our strong operational and financial
performance,” said senior executive vice-president and chief
financial officer Graham Shuttleworth.
“WE’RE ALL NEVADANS”
How NGM’s partnership with state stakeholders is
delivering real value
Months of negotiation between Nevada Gold Mines (NGM), the
Nevada Mining Association and state legislators have resulted in
the enacting of a new mining excise tax, the revenue from which
will be applied to education. The new tiered tax on gross proceeds
with a highest rate of 1.1% is a long way from the earlier state
legislature proposals, which aimed to increase the existing 5% tax
on the net proceeds of mining to 12% or to impose a gross royalty
of 7.75%.
Barrick’s chief operating officer for North America, Catherine
Raw, said this outcome, the product of strong representations by
NGM in particular, had averted the imposition of swingeing new
taxes on Nevada’s mining industry while at the same time creating a
new and much-needed revenue stream for the state’s education
system. The latter, she said, was closely aligned to Barrick’s and
NGM’s commitment to supporting education.
“When NGM was established in 2019, we recognized that a real
partnership with the state and other stakeholders — surrounding
communities, Native American tribes and county authorities — was
fundamental to our vision of creating real and sustainable economic
and social benefits for all of Nevada. We recognize the importance
of ‘growing the pie’ for current and future generations of Nevadans
and in 2020 alone, NGM’s economic contribution to Nevada totaled
$2.35 billion.1 As part of this, the team has developed a wide
range of programs which are now being identified and channeled
through the community development committees that NGM has
established,” she said.
In the early days of the Covid-19 pandemic, NGM worked with the
Public Education Foundation to train teachers for an internet-based
teaching model, following this up with a $2.2 million partnership
with the Nevada Department of Education to fund the Discovery
Education online curriculum and make it available to every child in
the state. NGM also recognized the need to prepare future
generations to fully realize the state’s enormous economic
potential and partnered with the College of Southern Nevada and the
Clark County School districts to create a program which will
provide free training in industrial maintenance and diesel
mechanics to low-income and ethnically diverse high schoolers.
At the tertiary level, NGM is expanding its support for Nevada’s
flagship universities in Reno and Las Vegas. In May, University of
Nevada Reno (UNR) president Brian Sandoval — a former state
governor — toured Carlin with five UNR executives to explore
further opportunities for working together to build the talent
pipeline. Nevada ranks 47th out of the US’s 50 states for the
number of practicing physicians, and many residents of the state’s
rural south have to travel 500 kilometres or more to receive
healthcare. To help ameliorate this situation, NGM has partnered
with Touro University to sponsor medical rotations at clinics in
the region with the aim of encouraging the next generation of
doctors to see rural Nevada as a good place to pursue their
careers.
FEASIBILITY STUDY CONFIRMS GOLDRUSH PROJECT WORLD-CLASS
STATUS
The updated Goldrush feasibility study is expected to
deliver one of the world’s leading gold projects and comfortably
meets Barrick’s investment criteria.
Total initial capital is expected to be slightly lower versus
the previous study’s estimate of around $1 billion. The feasibility
study is expected to support the conversion of reserves in the new
year and reflects the Plan of Operations submitted as part of the
permitting process, and for which the US Bureau of Land
Management’s Notice of Intent is expected to be published
imminently in the federal register. The Record of Decision is now
expected in Q4 2022.
“There remains an enormous potential for future improvement in
the project economics from those resources not considered in the
feasibility study and of course there is Fourmile16 that lies
contiguous to the Goldrush orebody. To put it plainly, the updated
study underscores our belief that this is a world-class asset which
more than meets our investment criteria,” Barrick president and
chief executive Mark Bristow said.
PUEBLO VIEJO MINE LIFE EXTENSION PROJECT ADVANCES WITH
AGREEMENT ON PERMITTING STUDIES
Pueblo Viejo and its stakeholders have agreed on a
government-led, strategic environmental assessment of the Mine Life
Extension Project, which forms part of a project that could extend
the life of this Tier One mine to beyond 2040 and support annual
production in excess of 800,000
ounces.1
The agreement comes after more than a year of engagement with
the communities that would be directly or indirectly affected by
the proposed facility and is an important step towards starting
fieldwork and advancing the permitting process. The independent
investigation will run in parallel with Barrick’s own land
acquisition and environmental studies.
Barrick has also started work on a local agribusiness
development which will be integrated into the tailings facility and
create a further benefit for the community.
The mine life extension and plant expansion project, which will
require an initial investment of approximately $1.3 billion1, has
the potential to allow Pueblo Viejo to convert approximately 9
million ounces1 of measured and indicated resources to proven and
probable reserves. With the project, Pueblo Viejo’s total economic
contribution to the Dominican government in direct and indirect
taxes is expected to be over $9 billion from the beginning of
commercial production in 2013 through the extended life of mine
beyond 2040.3 Pueblo Viejo is the Dominican Republic’s largest
corporate taxpayer.
Pueblo Viejo’s previous operator effectively abandoned the mine
in 1995 without a proper closure, leaving it with a major water
contamination problem. When Barrick took over the asset, it
launched the largest environmental clean-up campaign in the
country’s history, and the water quality now meets regulatory
standards.
EXPLORATION DRIVES THE BARRICK TRAIN
The gold mining industry’s chronic tendency to harvest
the gold price instead of investing in the future has resulted in
declining reserves and a shortage of high-quality development
projects.
At Barrick, on the other hand, a strong exploration culture
combined with its sustainable profitability strategy is expanding
its asset base as well as discovering exciting new
opportunities.
President and chief executive Mark Bristow says exploration is
uncovering new satellites and extensions to existing deposits, and
the North America and Africa & Middle East regions are likely
to more than replace reserves after mining depletion this year with
the completion of the Goldrush underground feasibility study and
progress at Loulo-Gounkoto, Kibali and the Tanzanian
operations.
“At the same time, our greenfields exploration programs are
evaluating new targets with standalone potential away from our
mines as well as investigating new regions and third-party projects
with the potential to meet our investment criteria. So far this
year, Barrick has expanded its global footprint through investments
in prospective new properties in Nevada, Tanzania, Egypt, Guyana
and Japan,” he says.
Bristow points to Fourmile in Nevada as one of the best gold
discoveries worldwide in recent years, and one that will create
significant value when it is potentially added to the world class
Goldrush development project, which is already a core growth asset
in the Nevada Gold Mines joint venture. Robertson, also in Nevada,
is a growing heap leach project that is progressing through a
pre-feasibility study. Donlin in Alaska is one of the largest
undeveloped gold orebodies in the world in a tier one jurisdiction
and Barrick is currently working with its JV partner NovaGold on
moving it up the value curve.
“The fact is that the industry has not been replacing what it’s
been mining. Barrick, on the other hand, is running its business
for the long term instead of focusing on the short-term gains,
extending its resource-based 10-year plans to 15 and even 20
years,” he says.
KIBALI MAINTAINS MOMENTUM ON COURSE TO 2021 PRODUCTION
TARGET
After a strong start in the first quarter of 2021, the
Kibali gold mine, one of the largest in the world, remains on track
at the halfway mark of the year to achieve its annual production
guidance.
Speaking at a media briefing in Kinshasa, Barrick president and
chief executive Mark Bristow said that thanks to an aggressive
near-mine exploration program, Kibali was continuing to replace its
reserves faster than it was mining them, and now had a resource
base approaching the 2013 levels when the mine first went into
production.
“This means that Kibali should be able to sustain its production
rate well beyond the 10-year timetable in its current business
plan, thus continuing to create economic benefits for its
stakeholders in a region where its presence has already had a
profoundly positive impact,” he said.
Since the development of Kibali started, it has pumped $3.6
billion into the DRC economy in the form of taxes, salaries,
payments to local suppliers, and tangible contributions to the
infrastructure. In the year to date alone it has paid $73.8 million
to local businesses, in line with its policy of giving preference
to Congolese contractors and suppliers. It also prioritizes local
employment, and of the 5,341 employees and contractors who were on
site at the end of June, 94% were Congolese nationals.
Bristow said Kibali was also a leader in its health, safety and
environmental protection programs. Covid-19 protection protocols at
the mine had been intensified and a vaccination program was well
under way. It largely uses clean energy, generated by its three
hydropower plants. Its water recycling and re-use rate of 78% was
above target, reducing its draw from the Kibali river. It continues
to reforest the surrounding area, with 6,716 trees planted during
the past quarter, and is also actively supporting the Garamba
National Park’s elephant protection and general improvement
initiatives.
He said Barrick’s success in building and operating a
world-class gold mine in a remote part of the Congo was
attributable to the mutually beneficial partnerships it had forged
with its in-country stakeholders: the central, provincial and local
governments; its host community; civil society; and a large corps
of highly competent contractors and suppliers.
“We are strengthening our ties with the recently appointed
government and are working towards an amicable solution of some
outstanding legal and fiscal issues,” Bristow said.
“In the meantime, Barrick continues to invest and re-invest in
our future in the DRC. Our short-term focus is on ensuring that
Kibali will remain a major generator of economic benefits for all
its stakeholders well into the next decade. Beyond that, our
exploration teams are already hunting for the next Kibali. Their
success rate in finding world-class gold deposits is
outstanding.”
EXPLORATION SUCCESSES POINT TO LONGER LIFE FOR
TONGON
Significant exploration successes could extend the
Tongon gold mine’s life, says Barrick president and chief executive
Mark Bristow.
Speaking at a local media briefing at the mine, Bristow said 10
years after it went into production Tongon could get a new lease on
life thanks to promising results from near-mine exploration
campaigns designed to replace the mine’s depleted reserves. In
addition to work on the promising Seydou North and Tongon West
targets, Tongon has filed the documentation for the extension of
its Nielle mining licence by a further 10 years, to support the
drive to add to its Life of Mine.
Bristow said Barrick, through its predecessor Randgold
Resources, had been investing in and partnering with Côte d’Ivoire
through the country’s many challenges and development stages.
“The successful commissioning of Tongon in the midst of a civil
war was a landmark achievement in the development of a gold mining
industry in the highly prospective but underexplored Côte d’Ivoire.
Since then, the mine has been consistently profitable – it has just
declared a $150 million dividend for the year — and boasts one of
the best safety records in the Barrick group. Over time it has
invested $1.77 billion in the Ivorian economy in the form of taxes,
salaries, payments to local suppliers and infrastructure
developments,” Bristow said.
In Barrick’s spirit of partnership with its host communities,
Tongon has provided the local villages, located in one of the
poorest parts of the country, with access to electricity and new
markets through a network of power lines, roads and bridges, built
new primary schools and clinics, boosted the development of a
regional economy by employing local contractors and suppliers, and
prefinanced a number of income-generating projects. Most recently
it has provided a surgical unit for the Mbengue clinic.
“A longer life for Tongon means that it will be able to continue
creating benefits to share with our Ivorian stakeholders for years
to come,” Bristow said.
Mali / Transforming a neglected nature
reserveBarrick has entered into an agreement with the
government of Mali to assume responsibility for the rehabilitation
of the neglected Fina Reserve. Classified as a biosphere reserve by
UNESCO in 1982, Fina has since suffered from under-investment and
mismanagement. The area covers 136,000 hectares and we’re investing
$5 million over the next five years to establish anti-poaching
programs and rehabilitate the reserve. An expert NGO, Bios, has
been appointed to manage the park, and public awareness meetings
have been held in 54 villages around the reserve.
DRC / Stimulating economic
growthKibali has launched an innovative campaign to
stimulate the Durba economy by issuing local shopping vouchers to
employees. Focused on bringing new business to low-income
enterprises in the local community, the mine’s supply chain
department identified 27 vendors to join the program. It kicked off
in April with more than 1,000 booklets containing vouchers valued
at $1 each issued to Kibali employees. More than $110,000 has been
injected into the local economy with these vouchers being exchanged
for merchandise from the local businesses.
Dominican Republic / Vaccinating remote
communitiesMany people in remote communities around Pueblo
Viejo were not able to travel to a Covid-19 vaccination clinic, so
we helped to bring the vaccine to them. Partnering with the
Dominican Republic’s National Vaccination Plan (“Vacúnate RD”),
Barrick Pueblo Viejo sponsored transportation for medical teams
along with community mobilization and engagement efforts to
encourage people to get vaccinated. Over two weeks in June, more
than 3,000 families in 25 communities near the mine received their
first dose of the vaccine.
Argentina / Training future
minersAn intensive six-month training program for new
vehicle operators recently began at Veladero — and for the first
time, all of the participants are women. The first month of the
program focuses on safety with in-class lessons, followed by five
months of practical training on-site with the trucks. After
successfully completing the program, participants will be eligible
to apply for full-time roles that arise at the mine. This
initiative is one part of Veladero’s efforts to encourage more
women from local regions to consider a career in mining.
Nevada / Celebrating new
gradsFamily and friends gathered to celebrate this year’s
college graduates at the annual Western Shoshone Scholarship
Foundation reception, hosted by Nevada Gold Mines in Elko, Nevada.
Special guests included the well-known poet and artist Tanaya
Winder, who is an enrolled member of the Duckwater Shoshone Tribe,
along with Devan Kicknosway, a champion chicken dancer,
motivational speaker and rising YouTube star. We congratulate the
class of 2021 and look forward to your future success!
Appendix 12021
Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS |
|
2021 forecastattributable production(000s oz) |
2021 forecast costof sales10 ($/oz) |
2021 forecast totalcash costs11 ($/oz) |
2021 forecast all-insustaining costs11($/oz) |
Carlin (61.5%)17 |
940 - 1,000 |
920 - 970 |
740 - 790 |
1,050 - 1,100 |
Cortez (61.5%)18 |
500 - 550 |
1,000 - 1,050 |
700 - 750 |
940 - 990 |
Turquoise Ridge (61.5%) |
390 - 440 |
950 - 1,000 |
620 - 670 |
810 - 860 |
Phoenix (61.5%) |
100 - 120 |
1,800 - 1,850 |
725 - 775 |
970 - 1,020 |
Long Canyon (61.5%) |
140 - 160 |
800 - 850 |
180 - 230 |
240 - 290 |
Nevada Gold Mines (61.5%) |
2,100 - 2,250 |
980 - 1,030 |
660 - 710 |
910 - 960 |
Hemlo |
200 - 220 |
1,200 - 1,250 |
950 - 1,000 |
1,280 - 1,330 |
North America |
2,300 - 2,450 |
990 - 1,040 |
690 - 740 |
940 - 990 |
|
|
|
|
|
Pueblo Viejo (60%) |
470 - 510 |
880 - 930 |
520 - 570 |
760 - 810 |
Veladero (50%) |
130 - 150 |
1,510 - 1,560 |
820 - 870 |
1,720 - 1,770 |
Porgera (47.5%)19 |
— |
— |
— |
— |
Latin America & Asia Pacific |
600 - 660 |
1,050 - 1,100 |
600 - 650 |
1,000 - 1,050 |
|
|
|
|
|
Loulo-Gounkoto (80%) |
510 - 560 |
980 - 1,030 |
630 - 680 |
930 - 980 |
Kibali (45%) |
350 - 380 |
990 - 1,040 |
590 - 640 |
800 - 850 |
North Mara (84%) |
240 - 270 |
970 - 1,020 |
740 - 790 |
960 - 1,010 |
Tongon (89.7%) |
180 - 200 |
1,470 - 1,520 |
1,000 - 1,050 |
1,140 - 1,190 |
Bulyanhulu (84%) |
170 - 200 |
980 - 1,030 |
580 - 630 |
810 - 860 |
Buzwagi (84%) |
30 - 40 |
1,360 - 1,410 |
1,250 - 1,300 |
1,230 - 1,280 |
Africa & Middle East |
1,500 - 1,600 |
1,050 - 1,100 |
690 - 740 |
920 - 970 |
|
|
|
|
|
Total Attributable to
Barrick20,21,22 |
4,400 - 4,700 |
1,020 - 1,070 |
680 - 730 |
970 - 1,020 |
|
|
|
|
|
COPPER PRODUCTION AND COSTS |
|
2021 forecastattributable production(Mlbs) |
2021 forecast costof sales10 ($/lb) |
2021 forecast C1cash costs12 ($/lb) |
2021 forecast all-insustaining costs12 ($/lb) |
Lumwana |
250 - 280 |
1.85 - 2.05 |
1.45 - 1.65 |
2.25 - 2.45 |
Zaldívar (50%) |
90 - 110 |
2.30 - 2.50 |
1.65 - 1.85 |
1.90 - 2.10 |
Jabal Sayid (50%) |
70 - 80 |
1.40 - 1.60 |
1.10 - 1.30 |
1.30 - 1.50 |
Total Attributable to
Barrick21 |
410 - 460 |
1.90 - 2.10 |
1.40 - 1.60 |
2.00 - 2.20 |
|
|
|
|
|
ATTRIBUTABLE CAPITAL EXPENDITURES |
|
|
|
|
($ millions) |
|
|
|
Attributable minesite sustaining |
1,250 - 1,450 |
|
|
|
Attributable project |
550 - 650 |
|
|
|
Total attributable capital expenditures |
1,800 - 2,100 |
|
|
|
2021 OUTLOOK ASSUMPTIONS AND ECONOMIC
SENSITIVITY ANALYSIS23
|
2021 GuidanceAssumption |
Hypothetical Change |
Impact on EBITDA24(millions) |
Impact on TCC/C1 Cash Costsand AISC11,12 |
Gold price sensitivity |
$1,700/oz |
+/- $100/oz |
+/- $620 |
+/-$4/oz |
Copper
price sensitivity |
$2.75/lb |
+/- $0.25/lb |
+/- $60 |
+/- $0.01/lb |
Appendix 2Production and Cost Summary -
Gold
|
For the three months ended |
|
6/30/21 |
3/31/21 |
% Change |
6/30/20 |
% Change |
Nevada Gold Mines LLC
(61.5%)a |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
452 |
485 |
(7)% |
521 |
(13)% |
Gold produced (000s oz 100% basis) |
735 |
789 |
(7)% |
847 |
(13)% |
Cost of sales ($/oz) |
1,111 |
1,047 |
6 % |
1,055 |
5 % |
Total cash costs ($/oz)b |
717 |
686 |
5 % |
728 |
(2)% |
All-in sustaining costs ($/oz)b |
1,014 |
932 |
9 % |
985 |
3 % |
Carlin (61.5%)c |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
190 |
229 |
(17)% |
235 |
(19)% |
Gold produced (000s oz 100% basis) |
309 |
373 |
(17)% |
382 |
(19)% |
Cost of sales ($/oz) |
1,043 |
950 |
10 % |
1,037 |
1 % |
Total cash costs ($/oz)b |
852 |
766 |
11 % |
850 |
0 % |
All-in sustaining costs ($/oz)b |
1,310 |
1,045 |
25 % |
1,130 |
16 % |
Cortez (61.5%)d |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
110 |
100 |
10 % |
132 |
(17)% |
Gold produced (000s oz 100% basis) |
178 |
163 |
10 % |
215 |
(17)% |
Cost of sales ($/oz) |
1,167 |
1,251 |
(7)% |
871 |
34 % |
Total cash costs ($/oz)b |
793 |
860 |
(8)% |
613 |
29 % |
All-in sustaining costs ($/oz)b |
1,029 |
1,203 |
(14)% |
950 |
8 % |
Turquoise Ridge (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
78 |
92 |
(15)% |
79 |
0 % |
Gold produced (000s oz 100% basis) |
128 |
149 |
(15)% |
128 |
0 % |
Cost of sales ($/oz) |
1,131 |
1,007 |
12 % |
1,073 |
5 % |
Total cash costs ($/oz)b |
752 |
647 |
16 % |
753 |
0 % |
All-in sustaining costs ($/oz)b |
904 |
741 |
22 % |
829 |
9 % |
Phoenix (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
28 |
25 |
11 % |
35 |
(21)% |
Gold produced (000s oz 100% basis) |
45 |
41 |
11 % |
57 |
(21)% |
Cost of sales ($/oz) |
1,864 |
2,051 |
(9)% |
1,726 |
8 % |
Total cash costs ($/oz)b |
279 |
346 |
(19)% |
725 |
(62)% |
All-in sustaining costs ($/oz)b |
401 |
530 |
(24)% |
957 |
(58)% |
Long Canyon (61.5%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
46 |
39 |
18 % |
40 |
15 % |
Gold produced (000s oz 100% basis) |
75 |
63 |
18 % |
65 |
15 % |
Cost of sales ($/oz) |
691 |
511 |
35 % |
1,009 |
(32)% |
Total cash costs ($/oz)b |
168 |
79 |
113 % |
308 |
(45)% |
All-in sustaining costs ($/oz)b |
191 |
156 |
22 % |
430 |
(56)% |
Pueblo Viejo (60%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
117 |
137 |
(15)% |
111 |
5 % |
Gold produced (000s oz 100% basis) |
195 |
229 |
(15)% |
185 |
5 % |
Cost of sales ($/oz) |
904 |
816 |
11 % |
935 |
(3)% |
Total cash costs ($/oz)b |
533 |
507 |
5 % |
579 |
(8)% |
All-in sustaining costs ($/oz)b |
723 |
689 |
5 % |
720 |
0 % |
Loulo-Gounkoto (80%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
143 |
154 |
(7)% |
141 |
2 % |
Gold produced (000s oz 100% basis) |
179 |
193 |
(7)% |
176 |
2 % |
Cost of sales ($/oz) |
993 |
974 |
2 % |
1,012 |
(2)% |
Total cash costs ($/oz)b |
610 |
608 |
0% |
639 |
(5)% |
All-in sustaining costs ($/oz)b |
1,073 |
920 |
17 % |
1,030 |
4 % |
Kibali (45%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
91 |
86 |
5 % |
90 |
1 % |
Gold produced (000s oz 100% basis) |
202 |
192 |
5 % |
201 |
1 % |
Cost of sales ($/oz) |
1,038 |
1,065 |
(3)% |
1,067 |
(3)% |
Total cash costs ($/oz)b |
645 |
691 |
(7)% |
617 |
5 % |
All-in sustaining costs ($/oz)b |
894 |
856 |
4 % |
739 |
21 % |
Veladero (50%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
31 |
32 |
(3)% |
49 |
(37)% |
Gold produced (000s oz 100% basis) |
62 |
64 |
(3)% |
98 |
(37)% |
Cost of sales ($/oz) |
1,231 |
1,151 |
7 % |
1,228 |
0 % |
Total cash costs ($/oz)b |
774 |
736 |
5 % |
801 |
(3)% |
All-in sustaining costs ($/oz)b |
1,698 |
2,104 |
(19)% |
1,383 |
23 % |
Porgera (47.5%)e |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
— |
— |
0% |
24 |
0% |
Gold produced (000s oz 100% basis) |
— |
— |
0% |
51 |
0% |
Cost of sales ($/oz) |
— |
— |
0% |
1,141 |
0% |
Total cash costs ($/oz)b |
— |
— |
0% |
875 |
0% |
All-in sustaining costs ($/oz)b |
— |
— |
0% |
1,046 |
0% |
Tongon (89.7%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
48 |
48 |
0 % |
64 |
(25)% |
Gold produced (000s oz 100% basis) |
53 |
54 |
0 % |
71 |
(25)% |
Cost of sales ($/oz) |
1,446 |
1,510 |
(4)% |
1,275 |
13 % |
Total cash costs ($/oz)b |
1,045 |
995 |
5 % |
688 |
52 % |
All-in sustaining costs ($/oz)b |
1,162 |
1,062 |
9 % |
745 |
56 % |
Hemlo |
|
|
|
|
|
Gold produced (000s oz) |
42 |
47 |
(11)% |
54 |
(22)% |
Cost of sales ($/oz) |
1,603 |
1,610 |
0 % |
1,268 |
26 % |
Total cash costs ($/oz)b |
1,314 |
1,324 |
(1)% |
1,080 |
22 % |
All-in sustaining costs ($/oz)b |
1,937 |
1,840 |
5 % |
1,456 |
33 % |
North Mara (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
63 |
62 |
1 % |
68 |
(7)% |
Gold produced (000s oz 100% basis) |
75 |
74 |
1 % |
81 |
(7)% |
Cost of sales ($/oz) |
975 |
1,061 |
(8)% |
1,040 |
(6)% |
Total cash costs ($/oz)b |
816 |
832 |
(2)% |
724 |
13 % |
All-in sustaining costs ($/oz)b |
952 |
1,038 |
(8)% |
1,166 |
(18)% |
Buzwagi (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
19 |
17 |
10 % |
20 |
(7)% |
Gold produced (000s oz 100% basis) |
22 |
20 |
10 % |
24 |
(7)% |
Cost of sales ($/oz) |
1,315 |
1,486 |
(12)% |
909 |
45 % |
Total cash costs ($/oz)b |
1,244 |
1,450 |
(14)% |
751 |
66 % |
All-in sustaining costs ($/oz)b |
1,242 |
1,467 |
(15)% |
770 |
61 % |
Bulyanhulu (84%) |
|
|
|
|
|
Gold produced (000s oz attributable basis) |
35 |
33 |
6 % |
7 |
400 % |
Gold produced (000s oz 100% basis) |
42 |
39 |
6 % |
8 |
400 % |
Cost of sales ($/oz) |
1,164 |
1,211 |
(4)% |
1,658 |
(30)% |
Total cash costs ($/oz)b |
776 |
865 |
(10)% |
950 |
(18)% |
All-in sustaining costs ($/oz)b |
916 |
957 |
(4)% |
1,014 |
(10)% |
Total
Attributable to Barrickf |
|
|
|
|
|
Gold produced (000s oz) |
1,041 |
1,101 |
(5)% |
1,149 |
(9)% |
Cost of sales ($/oz)g |
1,107 |
1,073 |
3 % |
1,075 |
3 % |
Total cash costs ($/oz)b |
729 |
716 |
2 % |
716 |
2 % |
All-in sustaining costs ($/oz)b |
1,087 |
1,018 |
7 % |
1,031 |
5 % |
- These results represent our 61.5% interest in Carlin (including
NGM's 60% interest in South Arturo), Cortez, Turquoise Ridge,
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 press release to the most directly
comparable IFRS measure, please see the endnotes to this press
release.
- Included within our 61.5% interest in Carlin is NGM's 60%
interest in South Arturo.
- Starting in the first quarter of 2021, Goldrush is reported as
part of Cortez as it is operated by Cortez management. Comparative
periods have been restated to include Goldrush.
- As Porgera was placed on care and maintenance on April 25,
2020, no operating data or per ounce data is provided.
- Excludes Pierina, Lagunas Norte, Golden Sunlight, and Morila
(40%) up until its divestiture in November 2020, as these assets
are producing incidental ounces while in closure or care and
maintenance.
- Gold cost of sales per ounce is calculated as cost of sales
across our gold operations (excluding sites in closure or care and
maintenance) divided by ounces sold (both on an attributable basis
using Barrick's ownership share).
Production and Cost Summary -
Copper
|
For the three months ended |
|
6/30/21 |
3/31/21 |
% Change |
6/30/20 |
% Change |
Lumwana |
|
|
|
|
|
Copper production (Mlbs) |
56 |
51 |
10 % |
72 |
(22)% |
Cost of sales ($/lb) |
2.36 |
1.97 |
20 % |
2.06 |
15 % |
C1 cash costs ($/lb)a |
1.72 |
1.48 |
16 % |
1.55 |
11 % |
All-in sustaining costs ($/lb)a |
2.92 |
2.37 |
23 % |
2.27 |
29 % |
Zaldívar
(50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
22 |
24 |
(8)% |
28 |
(21)% |
Copper production (Mlbs 100% basis) |
44 |
48 |
(8)% |
56 |
(21)% |
Cost of sales ($/lb) |
3.56 |
3.03 |
17 % |
2.52 |
41 % |
C1 cash costs ($/lb)a |
2.68 |
2.25 |
19 % |
1.79 |
50 % |
All-in sustaining costs ($/lb)a |
3.15 |
2.47 |
28 % |
2.09 |
51 % |
Jabal Sayid (50%) |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
18 |
18 |
0 % |
20 |
(10)% |
Copper production (Mlbs 100% basis) |
36 |
36 |
0 % |
40 |
(10)% |
Cost of sales ($/lb) |
1.47 |
1.21 |
21 % |
1.41 |
4 % |
C1 cash costs ($/lb)a |
1.27 |
1.06 |
20 % |
1.14 |
11 % |
All-in sustaining costs ($/lb)a |
1.39 |
1.22 |
14 % |
1.41 |
(1)% |
Total Attributable to Barrick |
|
|
|
|
|
Copper production (Mlbs attributable basis) |
96 |
93 |
3
% |
120 |
(20)% |
Cost of sales ($/lb)b |
2.43 |
2.11 |
15 % |
2.08 |
17 % |
C1 cash costs ($/lb)a |
1.83 |
1.60 |
14 % |
1.55 |
18 % |
All-in sustaining costs ($/lb)a |
2.74 |
2.26 |
21 % |
2.15 |
27 % |
- 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 the endnotes to this press
release.
- Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share).
Appendix 3 Financial and Operating
Highlights
|
For the three months ended |
|
|
For the six months ended |
|
|
6/30/21 |
|
|
3/31/21 |
|
|
% Change |
|
|
6/30/20 |
|
|
% Change |
|
|
6/30/21 |
|
|
6/30/20 |
|
|
% Change |
|
Financial
Results ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
2,893 |
|
|
2,956 |
|
|
(2 |
)% |
|
3,055 |
|
|
(5 |
)% |
|
5,849 |
|
|
5,776 |
|
|
1 |
% |
Cost of sales |
1,704 |
|
|
1,712 |
|
|
0 |
% |
|
1,900 |
|
|
(10 |
)% |
|
3,416 |
|
|
3,676 |
|
|
(7 |
)% |
Net earningsa |
411 |
|
|
538 |
|
|
(24 |
)% |
|
357 |
|
|
15 |
% |
|
949 |
|
|
757 |
|
|
25 |
% |
Adjusted net earningsb |
513 |
|
|
507 |
|
|
1 |
% |
|
415 |
|
|
24 |
% |
|
1,020 |
|
|
700 |
|
|
46 |
% |
Adjusted EBITDAb |
1,719 |
|
|
1,800 |
|
|
(5 |
)% |
|
1,697 |
|
|
1 |
% |
|
3,519 |
|
|
3,163 |
|
|
11 |
% |
Adjusted EBITDA marginc |
59 |
% |
|
61 |
% |
|
(3 |
)% |
|
56 |
% |
|
5 |
% |
|
60 |
% |
|
55 |
% |
|
9 |
% |
Minesite sustaining capital
expendituresd |
452 |
|
|
405 |
|
|
12 |
% |
|
420 |
|
|
8 |
% |
|
857 |
|
|
790 |
|
|
8 |
% |
Project capital
expendituresd |
203 |
|
|
131 |
|
|
55 |
% |
|
85 |
|
|
139 |
% |
|
334 |
|
|
161 |
|
|
107 |
% |
Total consolidated capital
expendituresd,e |
658 |
|
|
539 |
|
|
22 |
% |
|
509 |
|
|
29 |
% |
|
1,197 |
|
|
960 |
|
|
25 |
% |
Net cash provided by operating
activities |
639 |
|
|
1,302 |
|
|
(51 |
)% |
|
1,031 |
|
|
(38 |
)% |
|
1,941 |
|
|
1,920 |
|
|
1 |
% |
Net cash provided by operating
activities marginf |
22 |
% |
|
44 |
% |
|
(50 |
)% |
|
34 |
% |
|
(35 |
)% |
|
33 |
% |
|
33 |
% |
|
0 |
% |
Free cash flowb |
(19 |
) |
|
763 |
|
|
(102 |
)% |
|
522 |
|
|
(104 |
)% |
|
744 |
|
|
960 |
|
|
(23 |
)% |
Net earnings per share (basic and
diluted) |
0.23 |
|
|
0.30 |
|
|
(23 |
)% |
|
0.20 |
|
|
15 |
% |
|
0.53 |
|
|
0.43 |
|
|
23 |
% |
Adjusted net earnings (basic)b
per share |
0.29 |
|
|
0.29 |
|
|
0 |
% |
|
0.23 |
|
|
26 |
% |
|
0.57 |
|
|
0.39 |
|
|
46 |
% |
Weighted average diluted common shares (millions of shares) |
1,779 |
|
|
1,778 |
|
|
0 |
% |
|
1,778 |
|
|
0 |
% |
|
1,779 |
|
|
1,778 |
|
|
0 |
% |
Operating
Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold production (thousands of
ounces)g |
1,041 |
|
|
1,101 |
|
|
(5 |
)% |
|
1,149 |
|
|
(9 |
)% |
|
2,142 |
|
|
2,399 |
|
|
(11 |
)% |
Gold sold (thousands of
ounces)g |
1,070 |
|
|
1,093 |
|
|
(2 |
)% |
|
1,224 |
|
|
(13 |
)% |
|
2,163 |
|
|
2,444 |
|
|
(11 |
)% |
Market gold price ($/oz) |
1,816 |
|
|
1,794 |
|
|
1 |
% |
|
1,711 |
|
|
6 |
% |
|
1,805 |
|
|
1,645 |
|
|
10 |
% |
Realized gold priceb,g
($/oz) |
1,820 |
|
|
1,777 |
|
|
2 |
% |
|
1,725 |
|
|
6 |
% |
|
1,798 |
|
|
1,657 |
|
|
9 |
% |
Gold cost of sales (Barrick’s
share)g,h ($/oz) |
1,107 |
|
|
1,073 |
|
|
3 |
% |
|
1,075 |
|
|
3 |
% |
|
1,090 |
|
|
1,048 |
|
|
4 |
% |
Gold total cash costsb,g
($/oz) |
729 |
|
|
716 |
|
|
2 |
% |
|
716 |
|
|
2 |
% |
|
723 |
|
|
704 |
|
|
3 |
% |
Gold all-in sustaining costsb,g
($/oz) |
1,087 |
|
|
1,018 |
|
|
7 |
% |
|
1,031 |
|
|
5 |
% |
|
1,052 |
|
|
993 |
|
|
6 |
% |
Copper production (millions of
pounds)g |
96 |
|
|
93 |
|
|
3 |
% |
|
120 |
|
|
(20 |
)% |
|
189 |
|
|
235 |
|
|
(20 |
)% |
Copper sold (millions of
pounds)g |
96 |
|
|
113 |
|
|
(15 |
)% |
|
123 |
|
|
(22 |
)% |
|
209 |
|
|
233 |
|
|
(10 |
)% |
Market copper price ($/lb) |
4.40 |
|
|
3.86 |
|
|
14 |
% |
|
2.43 |
|
|
81 |
% |
|
4.12 |
|
|
2.49 |
|
|
65 |
% |
Realized copper priceb,g
($/lb) |
4.57 |
|
|
4.12 |
|
|
11 |
% |
|
2.79 |
|
|
64 |
% |
|
4.32 |
|
|
2.53 |
|
|
71 |
% |
Copper cost of sales (Barrick’s
share)g,i ($/lb) |
2.43 |
|
|
2.11 |
|
|
15 |
% |
|
2.08 |
|
|
17 |
% |
|
2.26 |
|
|
2.03 |
|
|
11 |
% |
Copper C1 cash costsb,g
($/lb) |
1.83 |
|
|
1.60 |
|
|
14 |
% |
|
1.55 |
|
|
18 |
% |
|
1.71 |
|
|
1.55 |
|
|
10 |
% |
Copper all-in sustaining costsb,g
($/lb) |
2.74 |
|
|
2.26 |
|
|
21 |
% |
|
2.15 |
|
|
27 |
% |
|
2.48 |
|
|
2.10 |
|
|
18 |
% |
|
As at6/30/21 |
|
|
As at3/31/21 |
|
|
% Change |
|
|
As at6/30/20 |
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
Financial
Position ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (current and long-term) |
5,152 |
|
|
5,153 |
|
|
0 |
% |
|
5,168 |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
Cash and equivalents |
5,138 |
|
|
5,672 |
|
|
(9 |
)% |
|
3,743 |
|
|
37 |
% |
|
|
|
|
|
|
|
|
|
Debt, net of cash |
14 |
|
|
(519 |
) |
|
(103 |
)% |
|
1,425 |
|
|
(99 |
)% |
|
|
|
|
|
|
|
|
|
- Net earnings represents net earnings 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 the
endnotes to this press release.
- 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 of $3 million and $6 million, respectively,
for the three and six month periods ended June 30, 2021
(March 31, 2021: $3 million and June 30, 2020: $4 million
and $9 million, respectively).
- Represents net cash provided by operating activities divided by
revenue.
- On an attributable basis.
- Gold cost of sales per ounce is calculated as cost of sales
across our gold operations (excluding sites in closure or care and
maintenance) divided by ounces sold (both on an attributable basis
using Barrick's ownership share).
- Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share).
Consolidated Statements of Income
Barrick
Gold Corporation(in millions of United States dollars, except per
share data) (Unaudited) |
Three months endedJune 30, |
|
Six months endedJune 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue (notes 5 and 6) |
$ |
2,893 |
|
$ |
3,055 |
|
$ |
5,849 |
|
$ |
5,776 |
|
Costs and expenses
(income) |
|
|
|
|
Cost of sales (notes 5 and
7) |
|
1,704 |
|
|
1,900 |
|
|
3,416 |
|
|
3,676 |
|
General and administrative
expenses |
|
47 |
|
|
71 |
|
|
85 |
|
|
111 |
|
Exploration, evaluation and
project expenses |
|
77 |
|
|
78 |
|
|
138 |
|
|
149 |
|
Impairment (reversals) charges
(notes 9b and 13) |
|
2 |
|
|
23 |
|
|
(87 |
) |
|
(313 |
) |
Loss on currency translation |
|
7 |
|
|
2 |
|
|
11 |
|
|
18 |
|
Closed mine rehabilitation |
|
6 |
|
|
7 |
|
|
29 |
|
|
97 |
|
Income from equity investees
(note 12) |
|
(104 |
) |
|
(61 |
) |
|
(207 |
) |
|
(115 |
) |
Other expense (note 9a) |
|
26 |
|
|
73 |
|
|
45 |
|
|
38 |
|
Income before finance
costs and income taxes |
$ |
1,128 |
|
$ |
962 |
|
$ |
2,419 |
|
$ |
2,115 |
|
Finance costs, net |
|
(91 |
) |
|
(82 |
) |
|
(178 |
) |
|
(186 |
) |
Income before income
taxes |
$ |
1,037 |
|
$ |
880 |
|
$ |
2,241 |
|
$ |
1,929 |
|
Income tax expense (note 10) |
|
(343 |
) |
|
(258 |
) |
|
(717 |
) |
|
(644 |
) |
Net income |
$ |
694 |
|
$ |
622 |
|
$ |
1,524 |
|
$ |
1,285 |
|
Attributable
to: |
|
|
|
|
Equity holders of Barrick Gold
Corporation |
$ |
411 |
|
$ |
357 |
|
$ |
949 |
|
$ |
757 |
|
Non-controlling interests (note 17) |
$ |
283 |
|
$ |
265 |
|
$ |
575 |
|
$ |
528 |
|
|
|
|
|
|
Earnings per share
data attributable to the equity holders of Barrick Gold Corporation
(note 8) |
|
|
|
|
Net income |
|
|
|
|
Basic |
$ |
0.23 |
|
$ |
0.20 |
|
$ |
0.53 |
|
$ |
0.43 |
|
Diluted |
$ |
0.23 |
|
$ |
0.20 |
|
$ |
0.53 |
|
$ |
0.43 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2021
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 endedJune 30, |
|
Six months endedJune 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income |
$ |
694 |
|
$ |
622 |
|
$ |
1,524 |
|
$ |
1,285 |
|
Other comprehensive
income (loss), net of taxes |
|
|
|
|
Items that may be
reclassified subsequently to profit or loss: |
|
|
|
|
Unrealized losses on derivatives
designated as cash flow hedges, net of tax $nil, $nil, $nil and
$nil |
|
— |
|
|
(2 |
) |
|
— |
|
|
(1 |
) |
Realized losses on derivatives
designated as cash flow hedges, net of tax $nil, $nil, $nil and
$nil |
|
3 |
|
|
— |
|
|
3 |
|
|
— |
|
Currency translation adjustments,
net of tax $nil, $nil, $nil and $nil |
|
— |
|
|
(1 |
) |
|
— |
|
|
(5 |
) |
Items that will not be
reclassified to profit or loss: |
|
|
|
|
Actuarial loss on post employment
benefit obligations, net of tax $nil, ($3), $3 and $nil |
|
— |
|
|
(5 |
) |
|
— |
|
|
(2 |
) |
Net change on equity investments,
net of tax ($3), $nil, $5 and $nil |
|
10 |
|
|
118 |
|
|
(37 |
) |
|
93 |
|
Total other comprehensive income (loss) |
|
13 |
|
|
110 |
|
|
(34 |
) |
|
85 |
|
Total comprehensive income |
$ |
707 |
|
$ |
732 |
|
$ |
1,490 |
|
$ |
1,370 |
|
Attributable
to: |
|
|
|
|
Equity holders of Barrick Gold
Corporation |
$ |
424 |
|
$ |
467 |
|
$ |
915 |
|
$ |
842 |
|
Non-controlling interests |
$ |
283 |
|
$ |
265 |
|
$ |
575 |
|
$ |
528 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2021
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 endedJune 30, |
|
Six months endedJune 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
OPERATING
ACTIVITIES |
|
|
|
|
Net income |
$ |
694 |
|
$ |
622 |
|
$ |
1,524 |
|
$ |
1,285 |
|
Adjustments for the following
items: |
|
|
|
|
Depreciation |
|
500 |
|
|
566 |
|
|
1,007 |
|
|
1,090 |
|
Finance costs, net |
|
100 |
|
|
86 |
|
|
194 |
|
|
197 |
|
Impairment (reversals) charges (notes 9b and 13) |
|
2 |
|
|
23 |
|
|
(87 |
) |
|
(313 |
) |
Income tax expense (note 10) |
|
343 |
|
|
258 |
|
|
717 |
|
|
644 |
|
Income from investment in equity investees |
|
(104 |
) |
|
(61 |
) |
|
(207 |
) |
|
(115 |
) |
Loss (gain) on sale of non-current assets |
|
(7 |
) |
|
8 |
|
|
(10 |
) |
|
(52 |
) |
Loss on currency translation |
|
7 |
|
|
2 |
|
|
11 |
|
|
18 |
|
Change in working capital
(note 11) |
|
(197 |
) |
|
(8 |
) |
|
(249 |
) |
|
(314 |
) |
Other
operating activities (note 11) |
|
(76 |
) |
|
25 |
|
|
(116 |
) |
|
106 |
|
Operating cash flows before
interest and income taxes |
|
1,262 |
|
|
1,521 |
|
|
2,784 |
|
|
2,546 |
|
Interest paid |
|
(131 |
) |
|
(130 |
) |
|
(153 |
) |
|
(154 |
) |
Income
taxes paid1 |
|
(492 |
) |
|
(360 |
) |
|
(690 |
) |
|
(472 |
) |
Net cash provided by operating activities |
|
639 |
|
|
1,031 |
|
|
1,941 |
|
|
1,920 |
|
INVESTING
ACTIVITIES |
|
|
|
|
Property, plant and
equipment |
|
|
|
|
Capital expenditures (note 5) |
|
(658 |
) |
|
(509 |
) |
|
(1,197 |
) |
|
(960 |
) |
Sales proceeds |
|
1 |
|
|
9 |
|
|
5 |
|
|
16 |
|
Investment sales |
|
— |
|
|
206 |
|
|
— |
|
|
206 |
|
Divestitures (note 4) |
|
19 |
|
|
— |
|
|
19 |
|
|
256 |
|
Dividends received from equity
method investments |
|
35 |
|
|
29 |
|
|
161 |
|
|
54 |
|
Shareholder loan repayments from equity method investments |
|
— |
|
|
1 |
|
|
1 |
|
|
1 |
|
Net cash used in investing activities |
|
(603 |
) |
|
(264 |
) |
|
(1,011 |
) |
|
(427 |
) |
FINANCING
ACTIVITIES |
|
|
|
|
Lease repayments |
|
(4 |
) |
|
(7 |
) |
|
(10 |
) |
|
(12 |
) |
Debt repayments |
|
— |
|
|
— |
|
|
(7 |
) |
|
(351 |
) |
Dividends |
|
(159 |
) |
|
(124 |
) |
|
(317 |
) |
|
(246 |
) |
Return of capital (note
16) |
|
(250 |
) |
|
— |
|
|
(250 |
) |
|
— |
|
Funding from non-controlling
interests (note 17) |
|
6 |
|
|
— |
|
|
12 |
|
|
1 |
|
Disbursements to
non-controlling interests (note 17) |
|
(206 |
) |
|
(217 |
) |
|
(471 |
) |
|
(434 |
) |
Other
financing activities (note 11) |
|
43 |
|
|
— |
|
|
64 |
|
|
(15 |
) |
Net cash used in financing activities |
|
(570 |
) |
|
(348 |
) |
|
(979 |
) |
|
(1,057 |
) |
Effect of exchange rate changes on cash and
equivalents |
|
— |
|
|
(3 |
) |
|
(1 |
) |
|
(7 |
) |
Net increase (decrease) in
cash and equivalents |
|
(534 |
) |
|
416 |
|
|
(50 |
) |
|
429 |
|
Cash and equivalents at the beginning of
period |
|
5,672 |
|
|
3,327 |
|
|
5,188 |
|
|
3,314 |
|
Cash and equivalents at the end of period |
$ |
5,138 |
|
$ |
3,743 |
|
$ |
5,138 |
|
$ |
3,743 |
|
1. Income taxes paid excludes $57 million (2020:
$45 million) for the three months ended June 30, 2021 and
$93 million (2020: $69 million) for the six months ended
June 30, 2021 of income taxes payable that were settled against
offsetting VAT receivables.
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2021
available on our website are an integral part of these consolidated
financial statements.
Consolidated Balance Sheets
Barrick Gold Corporation |
As at June 30, |
|
As at December 31, |
|
(in millions of United States dollars) (Unaudited) |
|
2021 |
|
|
2020 |
|
ASSETS |
|
|
Current assets |
|
|
Cash and equivalents (note 14a) |
$ |
5,138 |
|
$ |
5,188 |
|
Accounts receivable |
|
554 |
|
|
558 |
|
Inventories |
|
1,825 |
|
|
1,878 |
|
Other current assets |
|
522 |
|
|
519 |
|
Total current assets |
$ |
8,039 |
|
$ |
8,143 |
|
Non-current assets |
|
|
Equity in investees (note 12) |
|
4,715 |
|
|
4,670 |
|
Property, plant and equipment |
|
24,755 |
|
|
24,628 |
|
Goodwill |
|
4,769 |
|
|
4,769 |
|
Intangible assets |
|
158 |
|
|
169 |
|
Deferred income tax assets |
|
61 |
|
|
98 |
|
Non-current portion of inventory |
|
2,559 |
|
|
2,566 |
|
Other assets |
|
1,472 |
|
|
1,463 |
|
Total assets |
$ |
46,528 |
|
$ |
46,506 |
|
LIABILITIES AND
EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$ |
1,157 |
|
$ |
1,458 |
|
Debt |
|
15 |
|
|
20 |
|
Current income tax liabilities |
|
311 |
|
|
436 |
|
Other current liabilities |
|
315 |
|
|
306 |
|
Total current liabilities |
$ |
1,798 |
|
$ |
2,220 |
|
Non-current liabilities |
|
|
Debt |
|
5,137 |
|
|
5,135 |
|
Provisions |
|
2,925 |
|
|
3,139 |
|
Deferred income tax liabilities |
|
3,197 |
|
|
3,034 |
|
Other liabilities |
|
1,297 |
|
|
1,268 |
|
Total liabilities |
$ |
14,354 |
|
$ |
14,796 |
|
Equity |
|
|
Capital stock (note 16) |
$ |
28,995 |
|
$ |
29,236 |
|
Deficit |
|
(7,320 |
) |
|
(7,949 |
) |
Accumulated other comprehensive loss |
|
(20 |
) |
|
14 |
|
Other |
|
2,034 |
|
|
2,040 |
|
Total equity attributable to Barrick Gold Corporation
shareholders |
$ |
23,689 |
|
$ |
23,341 |
|
Non-controlling interests (note 17) |
|
8,485 |
|
|
8,369 |
|
Total equity |
$ |
32,174 |
|
$ |
31,710 |
|
Contingencies and commitments (notes 5 and 18) |
|
|
Total liabilities and equity |
$ |
46,528 |
|
$ |
46,506 |
|
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2021
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 |
|
Retainedearnings(deficit) |
|
Accumulatedother comprehensiveincome (loss)1 |
|
Other2 |
|
Total equityattributable toshareholders |
|
Non-controllinginterests |
|
Total equity |
|
At January 1, 2021 |
1,778,190 |
$29,236 |
|
($7,949 |
) |
$14 |
|
$2,040 |
|
$23,341 |
|
$8,369 |
|
$31,710 |
|
Net income |
— |
— |
|
949 |
|
— |
|
— |
|
949 |
|
575 |
|
1,524 |
|
Total other comprehensive loss |
— |
— |
|
— |
|
(34 |
) |
— |
|
(34 |
) |
— |
|
(34 |
) |
Total comprehensive income (loss) |
— |
— |
|
949 |
|
(34 |
) |
— |
|
915 |
|
575 |
|
1,490 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
— |
|
(317 |
) |
— |
|
— |
|
(317 |
) |
— |
|
(317 |
) |
Return of capital (note 16) |
— |
(250 |
) |
— |
|
— |
|
— |
|
(250 |
) |
— |
|
(250 |
) |
Issued on exercise of stock options |
50 |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Funding from non-controlling interests (note 17) |
— |
— |
|
— |
|
— |
|
— |
|
— |
|
12 |
|
12 |
|
Disbursements to non-controlling interests (note 17) |
— |
— |
|
— |
|
— |
|
— |
|
— |
|
(471 |
) |
(471 |
) |
Dividend reinvestment plan (note 16) |
104 |
3 |
|
(3 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
Share-based payments |
898 |
6 |
|
— |
|
— |
|
(6 |
) |
— |
|
— |
|
— |
|
Total transactions with owners |
1,052 |
(241 |
) |
(320 |
) |
— |
|
(6 |
) |
(567 |
) |
(459 |
) |
(1,026 |
) |
At June 30, 2021 |
1,779,242 |
$28,995 |
|
($7,320 |
) |
($20 |
) |
$2,034 |
|
$23,689 |
|
$8,485 |
|
$32,174 |
|
|
|
|
|
|
|
|
|
|
At January 1, 2020 |
1,777,927 |
$29,231 |
|
($9,722 |
) |
($122 |
) |
$2,045 |
|
$21,432 |
|
$8,395 |
|
$29,827 |
|
Net income |
— |
— |
|
757 |
|
— |
|
— |
|
757 |
|
528 |
|
1,285 |
|
Total other comprehensive income |
— |
— |
|
— |
|
85 |
|
— |
|
85 |
|
— |
|
85 |
|
Total comprehensive income |
— |
— |
|
757 |
|
85 |
|
— |
|
842 |
|
528 |
|
1,370 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
Dividends |
— |
— |
|
(246 |
) |
— |
|
— |
|
(246 |
) |
— |
|
(246 |
) |
Issuance of 16% interest in Tanzania mines |
— |
— |
|
— |
|
— |
|
— |
|
— |
|
238 |
|
238 |
|
Issued on exercise of stock options |
40 |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Funding from non-controlling interests |
— |
— |
|
— |
|
— |
|
— |
|
— |
|
1 |
|
1 |
|
Disbursements to non-controlling interests |
— |
— |
|
— |
|
— |
|
— |
|
— |
|
(448 |
) |
(448 |
) |
Dividend reinvestment plan |
101 |
3 |
|
(3 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
Share-based payments |
— |
— |
|
— |
|
— |
|
4 |
|
4 |
|
— |
|
4 |
|
Total transactions with owners |
141 |
3 |
|
(249 |
) |
— |
|
4 |
|
(242 |
) |
(209 |
) |
(451 |
) |
At June 30, 2020 |
1,778,068 |
$29,234 |
|
($9,214 |
) |
($37 |
) |
$2,049 |
|
$22,032 |
|
$8,714 |
|
$30,746 |
|
1 Includes cumulative translation
losses at June 30, 2021: $95 million (December 31,
2020: $95 million; June 30, 2020: $92 million).2
Includes additional paid-in capital as at June 30, 2021:
$1,996 million (December 31, 2020: $2,002 million;
June 30, 2020: $2,011 million).
The notes to these unaudited condensed interim financial
statements, which are contained in the Second Quarter Report 2021
available on our website are an integral part of these consolidated
financial statements.
Technical Information
The scientific and technical information contained in this press
release has been reviewed and approved by Steven Yopps, MMSA,
Manager of Growth Projects, Nevada Gold Mines; Craig Fiddes,
SME-RM, Manager – Resource Modeling, Nevada Gold Mines; Chad
Yuhasz, P.Geo, Mineral Resource Manager, Latin America & Asia
Pacific; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral
Resources Manager: Africa & 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 1On a 100% basis.
Endnote 2A Tier One Gold Asset is an asset with
a reserve potential to deliver a minimum 10-year life, annual
production of at least 500,000 ounces of gold and total cash costs
per ounce over the mine life that are in the lower half of the
industry cost curve.
Endnote 3Future economic contribution over
extended mine life assuming a gold price of $1,599 per ounce and a
silver price of $20.96 per ounce.
Endnote 4“Realized price” is a non-GAAP
financial measure which excludes from sales: unrealized gains and
losses on non-hedge derivative contracts; unrealized mark-to-market
gains and losses on provisional pricing from copper and gold sales
contracts; sales attributable to ore purchase arrangements;
treatment and refining charges; export duties; and cumulative
catch-up adjustments to revenue relating to our streaming
arrangements. This measure is intended to enable Management to
better understand the price realized in each reporting period for
gold and copper sales because unrealized mark-to-market values of
non-hedge gold and copper derivatives are subject to change each
period due to changes in market factors such as market and forward
gold and copper prices, so that prices ultimately realized may
differ from those recorded. The exclusion of such unrealized
mark-to-market gains and losses from the presentation of this
performance measure enables investors to understand performance
based on the realized proceeds of selling gold and copper
production. The realized price measure is intended to provide
additional information and does not have any standardized
definition under IFRS and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. Further details on these non-GAAP measures are provided
in the MD&A accompanying Barrick’s financial statements filed
from time to time on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
Reconciliation of Sales to Realized Price per
ounce/pound
($ millions,
except per ounce/pound information in dollars) |
Gold |
Copper |
Gold |
Copper |
For the three months ended |
|
For the six months ended |
|
|
6/30/21 |
|
3/31/21 |
|
6/30/20 |
|
6/30/21 |
|
3/31/21 |
|
6/30/20 |
|
6/30/21 |
|
6/30/20 |
|
6/30/21 |
|
6/30/20 |
|
Sales |
2,589 |
|
2,641 |
|
2,812 |
|
234 |
|
256 |
|
184 |
|
5,230 |
|
5,405 |
|
490 |
|
283 |
|
Sales applicable to
non-controlling interests |
(779 |
) |
(814 |
) |
(822 |
) |
0 |
|
0 |
|
0 |
|
(1,593 |
) |
(1,592 |
) |
0 |
|
0 |
|
Sales applicable to equity
method investmentsa,b |
168 |
|
154 |
|
172 |
|
161 |
|
170 |
|
120 |
|
322 |
|
319 |
|
331 |
|
227 |
|
Sales applicable to sites in
closure or care and maintenancec |
(28 |
) |
(41 |
) |
(53 |
) |
0 |
|
0 |
|
0 |
|
(69 |
) |
(99 |
) |
0 |
|
0 |
|
Treatment and refinement
charges |
0 |
|
0 |
|
2 |
|
39 |
|
41 |
|
40 |
|
0 |
|
2 |
|
80 |
|
79 |
|
Otherd |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
15 |
|
0 |
|
0 |
|
Revenues – as adjusted |
1,950 |
|
1,940 |
|
2,111 |
|
434 |
|
467 |
|
344 |
|
3,890 |
|
4,050 |
|
901 |
|
589 |
|
Ounces/pounds sold (000s ounces/millions pounds)c |
1,070 |
|
1,093 |
|
1,224 |
|
96 |
|
113 |
|
123 |
|
2,163 |
|
2,444 |
|
209 |
|
233 |
|
Realized gold/copper price per ounce/pounde |
1,820 |
|
1,777 |
|
1,725 |
|
4.57 |
|
4.12 |
|
2.79 |
|
1,798 |
|
1,657 |
|
4.32 |
|
2.53 |
|
a. |
Represents sales of $169 million and $323 million, respectively,
for the three and six month periods ended June 30, 2021
(March 31, 2021: $154 million and June 30, 2020: $164
million and $304 million, respectively) applicable to our 45%
equity method investment in Kibali for gold. Represents sales of
$87 million and $196 million, respectively, for the three and six
months ended June 30, 2021 (March 31, 2021: $109 million
and June 30, 2020: $78 million and $150 million, respectively)
applicable to our 50% equity method investment in Zaldívar and $79
million and $144 million, respectively (March 31, 2021: $65
million and June 30, 2020: $46 million and $86 million,
respectively) applicable to our 50% equity method investment in
Jabal Sayid for copper. |
b. |
Sales applicable to equity method investments are net of treatment
and refinement charges. |
c. |
Figures exclude: Pierina, Lagunas Norte up until its divestiture in
June 2021, Golden Sunlight, and Morila up until its divestiture in
November 2020 from the calculation of realized price per ounce.
These assets are producing incidental ounces. |
d. |
Represents a cumulative catch-up adjustment to revenue relating to
our streaming arrangements. Refer to note 2f of the 2020 Annual
Financial Statements for more information. |
e. |
Realized price per ounce/pound may not calculate based on amounts
presented in this table due to rounding. |
Endnote 5On an attributable basis.
Endnote 6Net earnings represents net earnings
attributable to the equity holders of the Company.
Endnote 7“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; 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 six months ended |
|
|
6/30/21 |
|
3/31/21 |
|
6/30/20 |
|
6/30/21 |
|
6/30/20 |
|
Net earnings attributable to equity holders of the Company |
411 |
|
538 |
|
357 |
|
949 |
|
757 |
|
Impairment charges (reversals)
related to intangibles, goodwill, property, plant and equipment,
and investmentsa |
2 |
|
(89 |
) |
23 |
|
(87 |
) |
(313 |
) |
Acquisition/disposition
(gains) lossesb |
(7 |
) |
(3 |
) |
8 |
|
(10 |
) |
(52 |
) |
Loss (gain) on currency
translation |
7 |
|
4 |
|
2 |
|
11 |
|
18 |
|
Significant tax
adjustmentsc |
62 |
|
47 |
|
(7 |
) |
109 |
|
(51 |
) |
Other expense
adjustmentsd |
14 |
|
11 |
|
48 |
|
25 |
|
146 |
|
Tax
effect and non-controlling intereste |
24 |
|
(1 |
) |
(16 |
) |
23 |
|
195 |
|
Adjusted net earnings |
513 |
|
507 |
|
415 |
|
1,020 |
|
700 |
|
Net earnings per sharef |
0.23 |
|
0.30 |
|
0.20 |
|
0.53 |
|
0.43 |
|
Adjusted net earnings per sharef |
0.29 |
|
0.29 |
|
0.23 |
|
0.57 |
|
0.39 |
|
a. |
For the three month period ended June 30, 2021, we recorded no
significant impairment charges or reversals. Net impairment
reversals for the three months ended March 31, 2021 and six months
ended June 30, 2021 mainly relate to non-current asset reversals at
Lagunas Norte. For the three month period ended June 30, 2020, net
impairment charges relate to miscellaneous assets. For the six
months ended June 30, 2020, net impairment reversals primarily
relate to non-current asset reversals at our Tanzanian assets. |
b. |
Acquisition/disposition gains for the six month period ended June
30, 2020 primarily relate to the gain on the sale of Massawa. |
c. |
Significant tax adjustments for the three month period ended June
30, 2021 mainly relates to deferred tax expense as a result of tax
reform measures in Argentina. For the three month period ended
March 31, 2021, significant tax adjustments mainly relate to the
remeasurement of deferred tax balances for changes in foreign
currency rates and the recognition/derecognition of our deferred
taxes in various jurisdictions. Significant tax adjustments for the
six month period ended June 30, 2021 mainly relates to deferred tax
expense as a result of tax reform measures in Argentina, the
remeasurement of deferred tax balances for changes in foreign
currency rates and the recognition/derecognition of our deferred
taxes in various jurisdictions. For the six months ended June 30,
2020, significant tax adjustments primarily relate to deferred tax
recoveries as a result of tax reform measures in Argentina and
adjustments made in recognition of the net settlement of all
outstanding disputes with the Government of Tanzania. |
d. |
Other expense adjustments for all periods mainly relate to care and
maintenance expenses at Porgera. The three month period ended June
30, 2020 was further impacted by Covid-19 donations. For the six
month period ended June 30, 2020, other expense adjustments also
relate to changes in the discount rate assumptions on our closed
mine rehabilitation provision. |
e. |
Tax effect and non-controlling interest for the six month period
ended June 30, 2020 primarily relates to the net impairment
reversals related to long-lived assets. |
f. |
Calculated using weighted average number of shares outstanding
under the basic method of earnings per share. |
Endnote 8“Free cash flow” is a non-GAAP
financial performance measure that 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 six months ended |
|
|
6/30/21 |
|
3/31/21 |
|
6/30/20 |
|
6/30/21 |
|
6/30/20 |
|
Net cash provided by operating
activities |
639 |
|
1,302 |
|
1,031 |
|
1,941 |
|
1,920 |
|
Capital
expenditures |
(658 |
) |
(539 |
) |
(509 |
) |
(1,197 |
) |
(960 |
) |
Free
cash flow |
(19 |
) |
763 |
|
522 |
|
744 |
|
960 |
|
Endnote 9These amounts are presented on the
same basis as our guidance.
Endnote 10Gold cost of sales per ounce is
calculated as cost of sales across our gold operations (excluding
sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using Barrick's ownership share).
Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share). References to
attributable basis means our 100% share of Hemlo and Lumwana, our
61.5% share of Nevada Gold Mines, our 60% share of Pueblo Viejo,
our 80% share of Loulo-Gounkoto, our 89.7% share of Tongon, our 84%
share of North Mara, Bulyanhulu and Buzwagi, our 50% share of
Veladero, Zaldívar and Jabal Sayid, our 47.5% share of Porgera and
our 45% share of Kibali.
Endnote 11“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 related to gold production and
removes depreciation, the non-controlling interest of cost of
sales, and includes by-product credits. “All-in sustaining costs”
per ounce start with “Total cash costs” per ounce and add further
costs which reflect the expenditures made to maintain current
production levels, 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 gold mining companies from around the
world, including Barrick), it is not a regulatory organization, and
other companies may calculate this measure differently. 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 six months ended |
|
|
Footnote |
6/30/21 |
|
3/31/21 |
|
6/30/20 |
|
6/30/21 |
|
6/30/20 |
|
Cost of sales applicable to
gold production |
|
1,561 |
|
1,571 |
|
1,740 |
|
3,132 |
|
3,383 |
|
Depreciation |
|
(448 |
) |
(454 |
) |
(498 |
) |
(902 |
) |
(972 |
) |
Cash cost of sales applicable to equity method investments |
|
55 |
|
59 |
|
62 |
|
114 |
|
114 |
|
By-product credits |
|
(70 |
) |
(59 |
) |
(59 |
) |
(129 |
) |
(88 |
) |
Realized (gains) losses on hedge and non-hedge derivatives |
a |
0 |
|
0 |
|
1 |
|
0 |
|
1 |
|
Non-recurring items |
b |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Other |
c |
(22 |
) |
(33 |
) |
(26 |
) |
(55 |
) |
(53 |
) |
Non-controlling interests |
d |
(294 |
) |
(302 |
) |
(336 |
) |
(596 |
) |
(652 |
) |
Total
cash costs |
|
782 |
|
782 |
|
884 |
|
1,564 |
|
1,733 |
|
General & administrative costs |
|
47 |
|
38 |
|
71 |
|
85 |
|
111 |
|
Minesite exploration and evaluation costs |
e |
16 |
|
16 |
|
23 |
|
32 |
|
38 |
|
Minesite sustaining capital expenditures |
f |
452 |
|
405 |
|
420 |
|
857 |
|
790 |
|
Sustaining leases |
|
6 |
|
13 |
|
10 |
|
19 |
|
10 |
|
Rehabilitation - accretion and amortization (operating sites) |
g |
13 |
|
11 |
|
12 |
|
24 |
|
26 |
|
Non-controlling interest, copper operations and other |
h |
(151 |
) |
(154 |
) |
(158 |
) |
(305 |
) |
(283 |
) |
All-in
sustaining costs |
|
1,165 |
|
1,111 |
|
1,262 |
|
2,276 |
|
2,425 |
|
Project exploration and evaluation and project costs |
e |
61 |
|
45 |
|
55 |
|
106 |
|
111 |
|
Community relations costs not related to current operations |
|
0 |
|
0 |
|
0 |
|
0 |
|
1 |
|
Project capital expenditures |
f |
203 |
|
131 |
|
85 |
|
334 |
|
161 |
|
Non-sustaining leases |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Rehabilitation - accretion and amortization (non-operating
sites) |
g |
4 |
|
3 |
|
4 |
|
7 |
|
6 |
|
Non-controlling interest and copper operations and other |
h |
(74 |
) |
(42 |
) |
(36 |
) |
(116 |
) |
(53 |
) |
All-in
costs |
|
1,359 |
|
1,248 |
|
1,370 |
|
2,607 |
|
2,651 |
|
Ounces
sold - equity basis (000s ounces) |
i |
1,070 |
|
1,093 |
|
1,224 |
|
2,163 |
|
2,444 |
|
Cost of
sales per ounce |
j,k |
1,107 |
|
1,073 |
|
1,075 |
|
1,090 |
|
1,048 |
|
Total cash costs per
ounce |
k |
729 |
|
716 |
|
716 |
|
723 |
|
704 |
|
Total
cash costs per ounce (on a co-product basis) |
k,l |
766 |
|
746 |
|
747 |
|
757 |
|
726 |
|
All-in sustaining costs per
ounce |
k |
1,087 |
|
1,018 |
|
1,031 |
|
1,052 |
|
993 |
|
All-in
sustaining costs per ounce (on a co-product basis) |
k,l |
1,124 |
|
1,048 |
|
1,062 |
|
1,086 |
|
1,015 |
|
All-in costs per ounce |
k |
1,269 |
|
1,144 |
|
1,118 |
|
1,206 |
|
1,085 |
|
All-in
costs per ounce (on a co-product basis) |
k,l |
1,306 |
|
1,174 |
|
1,149 |
|
1,240 |
|
1,107 |
|
a. |
Realized (gains) losses on hedge and non-hedge
derivativesIncludes realized hedge losses of $nil and
$nil, respectively, for the three and six month periods ended
June 30, 2021 (March 31, 2021: $nil and June 30,
2020: $nil and $nil, respectively), and realized non-hedge losses
of $nil and $nil, respectively, for the three and six month periods
ended June 30, 2021 (March 31, 2021: $nil and
June 30, 2020: losses of $1 million and $1 million,
respectively). |
|
|
b. |
Non-recurring itemsThese costs are not indicative
of our cost of production and have been excluded from the
calculation of total cash costs. |
|
|
c. |
OtherOther adjustments for the three and six month
periods ended June 30, 2021 include the removal of total cash
costs and by-product credits associated with Pierina, Lagunas Norte
up until its divestiture in June 2021, Golden Sunlight and Morila
up until its divestiture in November 2020, which all are producing
incidental ounces, of $14 million and $38 million, respectively
(March 31, 2021: $24 million; June 30, 2020: $26 million
and $51 million, respectively). |
|
|
d. |
Non-controlling interestsNon-controlling interests
include non-controlling interests related to gold production of
$453 million and $915 million, respectively, for the three and six
month periods ended June 30, 2021 (March 31, 2021: $462
million and June 30, 2020: $495 million and $961 million,
respectively). Non-controlling interests include Nevada Gold Mines,
Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara, Bulyanhulu,
Buzwagi. Refer to Note 5 to the Financial Statements for further
information. |
|
|
e. |
Exploration and evaluation costsExploration,
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 71 of the second quarter
2021 MD&A. |
|
|
f. |
Capital expenditures Capital expenditures are
related to our gold sites only and 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 the
expansion project at Pueblo Viejo, construction of the Third Shaft
at Turquoise Ridge, and the development of the Gounkoto
underground. Refer to page 70 of the second quarter 2021
MD&A. |
|
|
g. |
Rehabilitation—accretion and amortizationIncludes
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
operationsRemoves 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 Nevada Gold Mines (including South Arturo), Pueblo
Viejo, Loulo-Gounkoto, Tongon, North Mara, Bulyanhulu, and Buzwagi
operating segments. It also includes capital expenditures
applicable to our equity method investment in Kibali. Figures
remove the impact of Pierina, Lagunas Norte up until its
divestiture in June 2021, Golden Sunlight and Morila up until its
divestiture in November 2020. |
($
millions) |
For the three months ended |
|
For the six months ended |
|
Non-controlling interest, copper operations and other |
6/30/21 |
|
3/31/21 |
|
6/30/20 |
|
6/30/21 |
|
6/30/20 |
|
General &
administrative costs |
(7 |
) |
(6 |
) |
(8 |
) |
(13 |
) |
(14 |
) |
Minesite exploration and
evaluation expenses |
(3 |
) |
(7 |
) |
(8 |
) |
(10 |
) |
(11 |
) |
Rehabilitation - accretion and
amortization (operating sites) |
(4 |
) |
(3 |
) |
(4 |
) |
(7 |
) |
(8 |
) |
Minesite sustaining capital expenditures |
(137 |
) |
(138 |
) |
(138 |
) |
(275 |
) |
(250 |
) |
All-in
sustaining costs total |
(151 |
) |
(154 |
) |
(158 |
) |
(305 |
) |
(283 |
) |
Project exploration and
evaluation and project costs |
(8 |
) |
(1 |
) |
(9 |
) |
(9 |
) |
(12 |
) |
Project
capital expenditures |
(66 |
) |
(41 |
) |
(27 |
) |
(107 |
) |
(41 |
) |
All-in
costs total |
(74 |
) |
(42 |
) |
(36 |
) |
(116 |
) |
(53 |
) |
i. |
Ounces sold - equity basisFigures remove the
impact of: Pierina, Lagunas Norte up until its divestiture in June
2021, Golden Sunlight, and Morila up until its divestiture in
November 2020, which are producing incidental ounces. |
|
|
j. |
Cost of sales per ounceFigures remove the cost of
sales impact of: Pierina of $2 million and $7 million,
respectively, for the three and six month periods ended
June 30, 2021 (March 31, 2021: $5 million and
June 30, 2020: $4 million and $10 million, respectively);
Golden Sunlight of $nil and $nil, respectively, for the three and
six month periods ended June 30, 2021 (March 31, 2021:
$nil and June 30, 2020: $nil and $nil, respectively); up until
its divestiture in November of 2020, Morila, of $nil and $nil,
respectively, for the three and six month periods ended
June 30, 2021 (March 31, 2021: $nil and June 30,
2020: $8 million and $14 million, respectively); and up until its
divestiture in June 2021, Lagunas Norte of $14 million and $37
million, respectively, for the three and six month periods ended
June 30, 2021 (March 31, 2021: $23 million and
June 30, 2020: $23 million and $43 million, respectively),
which are producing incidental ounces. Gold cost of sales per ounce
is calculated as cost of sales across our gold operations
(excluding sites in closure or care and maintenance) divided by
ounces sold (both on an attributable basis using Barrick's
ownership share). |
|
|
k. |
Per ounce figures Cost of sales per ounce,
total cash costs per ounce, all-in sustaining costs per ounce and
all-in costs per ounce may not calculate based on amounts presented
in this table due to rounding. |
|
|
l. |
Co-product costs per ounce Total cash costs
per ounce, all-in sustaining costs per ounce and all-in costs per
ounce presented on a co-product basis removes the impact of
by-product credits of our gold production (net of non-controlling
interest) calculated as: |
($
millions) |
For the three months ended |
|
For the six months ended |
|
|
6/30/21 |
|
3/31/21 |
|
6/30/20 |
|
6/30/21 |
|
6/30/20 |
|
By-product credits |
70 |
|
59 |
|
59 |
|
129 |
|
88 |
|
Non-controlling interest |
(30 |
) |
(26 |
) |
(22 |
) |
(56 |
) |
(37 |
) |
By-product credits (net of non-controlling interest) |
40 |
|
33 |
|
37 |
|
73 |
|
51 |
|
Endnote 12“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 production
taxes 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 six months ended |
|
|
6/30/21 |
|
3/31/21 |
|
6/30/20 |
|
6/30/21 |
|
6/30/20 |
|
Cost of sales |
137 |
|
136 |
|
153 |
|
273 |
|
277 |
|
Depreciation/amortization |
(46 |
) |
(48 |
) |
(63 |
) |
(94 |
) |
(106 |
) |
Treatment and refinement charges |
39 |
|
41 |
|
40 |
|
80 |
|
79 |
|
Cash cost of sales applicable to equity method investments |
72 |
|
79 |
|
72 |
|
151 |
|
138 |
|
Less: royalties and production taxesa |
(25 |
) |
(23 |
) |
(11 |
) |
(48 |
) |
(22 |
) |
By-product credits |
(3 |
) |
(4 |
) |
(3 |
) |
(7 |
) |
(6 |
) |
Other |
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
C1 cash
costs |
174 |
|
181 |
|
188 |
|
355 |
|
360 |
|
General & administrative costs |
5 |
|
4 |
|
6 |
|
10 |
|
9 |
|
Rehabilitation - accretion and amortization |
2 |
|
1 |
|
2 |
|
3 |
|
5 |
|
Royalties and production taxesa |
25 |
|
23 |
|
11 |
|
48 |
|
22 |
|
Minesite exploration and evaluation costs |
4 |
|
2 |
|
1 |
|
6 |
|
2 |
|
Minesite sustaining capital expenditures |
48 |
|
42 |
|
52 |
|
90 |
|
84 |
|
Sustaining leases |
2 |
|
2 |
|
2 |
|
4 |
|
5 |
|
All-in sustaining costs |
260 |
|
255 |
|
262 |
|
516 |
|
487 |
|
Pounds
sold - consolidated basis (millions pounds) |
96 |
|
113 |
|
123 |
|
209 |
|
233 |
|
Cost of
sales per poundb,c |
2.43 |
|
2.11 |
|
2.08 |
|
2.26 |
|
2.03 |
|
C1 cash
cost per poundb |
1.83 |
|
1.60 |
|
1.55 |
|
1.71 |
|
1.55 |
|
All-in
sustaining costs per poundb |
2.74 |
|
2.26 |
|
2.15 |
|
2.48 |
|
2.10 |
|
a. |
For the three and six month periods ended June 30, 2021,
royalties and production taxes include royalties of $25 million and
$48 million, respectively (March 31, 2021: $23 million and
June 30, 2020: $11 million and $22 million,
respectively). |
b. |
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. |
c. |
Copper cost of sales per pound is calculated as cost of sales
across our copper operations divided by pounds sold (both on an
attributable basis using Barrick's ownership share). |
Endnote 13Quarter on quarter.
Endnote 14Per share amount is estimated based
on issued and outstanding Barrick shares as of June 30, 2021 and is
subject to change. The final per share amount to be paid on
September 15, 2021 will be calculated based on the issued and
outstanding Barrick shares as of the August 31, 2021 record
date.
Endnote 15The 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 16Fourmile is currently not included in
the NGM joint venture with Newmont, but may be contributed if
certain criteria are met in the future.
Endnote 17Included within our 61.5% interest in
Carlin is NGM's 60% interest in South Arturo.
Endnote 18Includes Goldrush.
Endnote 19Porgera was placed on temporary care
and maintenance in April 2020 and remains excluded from our 2021
guidance. On April 9, 2021, the Government of Papua New Guinea and
BNL, the operator of the Porgera joint venture, signed a binding
Framework Agreement in which they agreed on a partnership for
Porgera's future ownership and operation. We expect to update our
guidance to include Porgera following both the execution of
definitive agreements to implement the Framework Agreement and the
finalization of a timeline for the resumption of full mine
operations.
Endnote 20Total cash costs and all-in
sustaining costs per ounce include the impact of hedges and/or
costs allocated to non-operating sites.
Endnote 21Operating division guidance ranges
reflect expectations at each individual operating division, and may
not add up to the company-wide guidance range total. Guidance
ranges exclude Pierina and Lagunas Norte which are producing
incidental ounces while in closure or care and maintenance. Lagunas
Norte was divested in June 2021.
Endnote 22Includes corporate administration
costs.
Endnote 23Reflects the impact of the full
year.
Endnote 24EBITDA is a non-GAAP financial
measure, which excludes the following from net earnings: income tax
expense; finance costs; finance income; and depreciation.
Management believes that EBITDA is a valuable indicator of our
ability to generate liquidity by producing operating cash flow to
fund working capital needs, service debt obligations, and fund
capital expenditures. Management uses EBITDA for this purpose.
Adjusted EBITDA removes the effect of impairment charges;
acquisition/disposition gains/losses; foreign currency translation
gains/losses; other expense adjustments; and the impact of the
income tax expense, finance costs, finance income and depreciation
incurred in our equity method accounted investments. We believe
these items provide a greater level of consistency with the
adjusting items included in our Adjusted Net Earnings
reconciliation, with the exception that these amounts are adjusted
to remove any impact on finance costs/income, income tax expense
and/or depreciation as they do not affect EBITDA. We believe this
additional information will assist analysts, investors and other
stakeholders of Barrick in better understanding our ability to
generate liquidity from our full business, including equity method
investments, by excluding these amounts from the calculation as
they are not indicative of the performance of our core mining
business and not necessarily reflective of the underlying operating
results for the periods presented. EBITDA and adjusted EBITDA 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 EBITDA and Adjusted
EBITDA
($
millions) |
For the three months ended |
|
For the six months ended |
|
|
6/30/21 |
|
3/31/21 |
|
6/30/20 |
|
6/30/21 |
|
6/30/20 |
|
Net earnings |
694 |
|
830 |
|
622 |
|
1,524 |
|
1,285 |
|
Income tax expense |
343 |
|
374 |
|
258 |
|
717 |
|
644 |
|
Finance costs, neta |
76 |
|
77 |
|
74 |
|
153 |
|
162 |
|
Depreciation |
500 |
|
507 |
|
566 |
|
1,007 |
|
1,090 |
|
EBITDA |
1,613 |
|
1,788 |
|
1,520 |
|
3,401 |
|
3,181 |
|
Impairment charges (reversals)
of long-lived assetsb |
2 |
|
(89 |
) |
23 |
|
(87 |
) |
(313 |
) |
Acquisition/disposition
(gains) lossesc |
(7 |
) |
(3 |
) |
8 |
|
(10 |
) |
(52 |
) |
Loss on currency
translation |
7 |
|
4 |
|
2 |
|
11 |
|
18 |
|
Other expense (income)
adjustmentsd |
14 |
|
11 |
|
48 |
|
25 |
|
146 |
|
Income
tax expense, net finance costs, and depreciation from equity
investees |
90 |
|
89 |
|
96 |
|
179 |
|
183 |
|
Adjusted EBITDA |
1,719 |
|
1,800 |
|
1,697 |
|
3,519 |
|
3,163 |
|
a. |
Finance costs exclude accretion. |
b. |
For the three month period ended June 30, 2021, we recorded no
significant impairment charges or reversals. Net impairment
reversals for the three months ended March 31, 2021 and six months
ended June 30, 2021 mainly relate to non-current asset reversals at
Lagunas Norte. For the three month period ended June 30, 2020, net
impairment charges relate to miscellaneous assets. For the six
months ended June 30, 2020, net impairment reversals primarily
relate to non-current asset reversals at our Tanzanian assets. |
c. |
Acquisition/disposition gains for the six month period ended June
30, 2020 primarily relate to the gain on the sale of Massawa. |
d. |
Other expense adjustments for all periods mainly relate to care and
maintenance expenses at Porgera. The three month period ended June
30, 2020 was further impacted by Covid-19 donations. For the six
month period ended June 30, 2020, other expense adjustments also
relate to changes in the discount rate assumptions on our closed
mine rehabilitation provision. |
Corporate Office
Barrick Gold Corporation161 Bay Street, Suite
3700Toronto, Ontario M5J 2S1Canada
Telephone: +1 416 861-9911Email: investor@barrick.comWebsite:
www.barrick.com
Shares Listed
GOLDThe New York Stock Exchange
ABXThe Toronto Stock Exchange
Transfer Agents and Registrars
AST Trust Company (Canada)P.O. Box 700, Postal
Station BMontreal, Quebec H3B 3K3or American Stock
Transfer & Trust Company, LLC6201 – 15 AvenueBrooklyn,
New York 11219
Telephone: 1-800-387-0825Fax: 1-888-249-6189Email:
inquiries@astfinancial.comWebsite: www.astfinancial.com
Enquiries
President and Chief Executive OfficerMark
Bristow+1 647 205 7694+44 788 071 1386
Senior Executive Vice-President and Chief Financial
OfficerGraham Shuttleworth+1 647 262 2095+44 779
771 1338
Investor and Media RelationsKathy du Plessis+44
20 7557 7738Email: barrick@dpapr.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 “believe”, “expect”, “vision”, “aim”, “strategy”,
“target”, “plan”, “opportunities”, “guidance”, “forecast”,
“outlook”, “objective”, “intended”, “project”, “pursue”,
“continue”, “estimate”, “potential”, “prospective”, “future”,
“focus”, “ongoing”, “following”, “subject to”, “may”, “will”,
“can”, “could”, “would”, “should” 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 guidance;
estimates of future cost of sales per ounce for gold and per pound
for copper, total cash costs per ounce and C1 cash costs per pound,
and all-in-sustaining costs per ounce/pound; cash flow forecasts;
projected capital, operating and exploration expenditures; the
timing and amount of Barrick’s return of capital distributions;
mine life and production rates, including timing of production
ramp-up at Goldrush; the results of the Goldrush Feasibility Study,
including projected capital estimates, anticipated permitting
timelines and investment returns related to the Goldrush Project,
as well as opportunities for enhancements; Barrick’s engagement
with local communities to manage the Covid-19 pandemic; our plans
and expected timing and benefits of our growth projects, including
the Goldrush project, Turquoise Ridge Third Shaft, and Pueblo Viejo
plant and tailings facility expansion; the impact of Nevada’s new
mining excise tax on Nevada Gold Mines; our pipeline of high
confidence projects at or near existing operations; potential
mineralization and metal or mineral recoveries; our ability to
convert resources into reserves; asset sales, joint ventures and
partnerships; Barrick’s global exploration strategy and planned
exploration activities; Barrick’s strategy, plans, targets and
goals in respect of environmental and social governance issues,
including climate change, greenhouse gas emissions reduction
targets and tailings storage facility management; 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); risks associated with
projects in the early stages of evaluation and for which additional
engineering and other analysis is required; risks related to the
possibility that future exploration results will not be consistent
with the Company’s expectations, that quantities or grades of
reserves will be diminished, and that resources may not be
converted to reserves; risks associated with the fact that certain
of the initiatives described in this press release are still in the
early stages and may not materialize; changes in mineral production
performance, exploitation and exploration successes; 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; the speculative nature of mineral exploration and
development; lack of certainty with respect to foreign legal
systems, corruption and other factors that are inconsistent with
the rule of law; 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 or other countries in
which Barrick does or may carry on business in the future; risks
relating to political instability in certain of the jurisdictions
in which Barrick operates; timing of receipt of, or failure to
comply with, necessary permits and approvals, including the
issuance of a Record of Decision for the Goldrush Project and/or
whether the Goldrush Project will be permitted to advance as
currently designed under its Feasibility Study; non-renewal of key
licenses by governmental authorities, including non-renewal of
Porgera’s special mining lease; failure to comply with
environmental and health and safety laws and regulations; contests
over title to properties, particularly title to undeveloped
properties, or over access to water, power and other required
infrastructure; the liability associated with risks and hazards in
the mining industry, and the ability to maintain insurance to cover
such losses; increased costs and physical risks, including extreme
weather events and resource shortages, related to climate change;
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; risks related
to operations near communities that may regard Barrick’s operations
as being detrimental to them; litigation and legal and
administrative proceedings; operating or technical difficulties in
connection with mining or development activities, including
geotechnical challenges, tailings dam and storage facilities
failures, and disruptions in the maintenance or provision of
required infrastructure and information technology systems;
increased costs, delays, suspensions and technical challenges
associated with the construction of capital projects; risks
associated with working with partners in jointly controlled assets;
risks related to disruption of supply routes which may cause delays
in construction and mining activities; risk of loss due to acts of
war, terrorism, sabotage and civil disturbances; risks associated
with artisanal and illegal mining; risks associated with Barrick’s
infrastructure, information technology systems and the
implementation of Barrick’s technological initiatives; 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; the impact of inflation; adverse changes in our
credit ratings; fluctuations in the currency markets; changes in
U.S. dollar interest rates; risks arising from holding derivative
instruments (such as credit risk, market liquidity risk and
mark-to-market risk); risks related to the demands placed on the
Company’s management, the ability of management to implement its
business strategy and enhanced political risk in certain
jurisdictions; uncertainty whether some or all of Barrick's
targeted investments and projects will meet the Company’s capital
allocation objectives and internal hurdle rate; whether benefits
expected from recent transactions being realized; business
opportunities that may be presented to, or pursued by, the Company;
our ability to successfully integrate acquisitions or complete
divestitures; risks related to competition in the mining industry;
employee relations including loss of key employees; availability
and increased costs associated with mining inputs and labor; risks
associated with diseases, epidemics and pandemics, including the
effects and potential effects of the global Covid-19 pandemic;
risks related to the failure of internal controls; and risks
related to the impairment of the Company’s goodwill and assets.
Barrick also cautions that its 2021 guidance may be impacted by the
unprecedented business and social disruption caused by the spread
of Covid-19. 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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