Mr. Mark Bristow reports
STRONG Q4 CAPS GREAT YEAR FOR BARRICK
Barrick Gold Corp.'s gold production for 2019 of 5,465,000 ounces was at the top end of its guidance range while copper production of 432 million pounds was above the guidance range.
All amounts are expressed in U.S. dollars unless otherwise indicated.
Announcing its results for the fourth quarter and the year, the company reported net earnings per share of $2.26 for the year and noted that its adjusted net earnings per share were up 46 per cent year on year while debt net of cash was halved from 2018 to $2.2-billion. The quarterly dividend was increased by 40 per cent from the third quarter, to seven cents per share, which was itself a 25-per-cent increase from Q2.
In a presentation, president and chief executive Mark Bristow said the successful formation of the Nevada Gold Mines joint venture during the year had resulted in the North American operations delivering at the midpoint of its production and cost guidance ranges. There were also strong performances from Barrick's Latin American, Asia Pacific and Africa Middle East operations.
"In the year since the completion of Barrick's merger with Randgold Resources, we have transformed the new company while creating the world's largest gold mining complex in Nevada in a transaction that had been unsuccessfully pursued for two decades. The Acacia minorities' buyout enabled us to settle that company's long-running dispute with the Tanzanian government and to integrate its assets into our operations. We've also started selling off non-core assets with the disposal of our stakes in the Kalgoorlie gold mine in Australia and the agreed sale of the Massawa project in Senegal," Mr. Bristow said.
2019 Q4 highlights
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Full-year gold production at upper end and copper production above guidance ranges;
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Debt net of cash at $2.2-billion, down 47 per cent from 2018;
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Proven and probable reserves increase year on year at higher grade, net of depletion;
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Another quarterly dividend increase, up 40 per cent from Q3 to seven cents per share.
FINANCIAL AND OPERATING HIGHLIGHTS
Financial results Q4 2019 Q3 2019 2019 2018
Realized gold price ($ per ounce) $1,483 $1,476 $1,396 $1,270
Net earnings (loss) ($ millions) 1,387 2,277 3,969 (1,545)
Adjusted net earnings ($ millions) 300 264 902 409
Net cash provided by operating activities ($ millions) 875 1,004 2,833 1,765
Free cash flow ($ millions) 429 502 1,132 365
Net earnings (loss) per share ($) 0.78 1.30 2.26 (1.32)
Adjusted net earnings per share ($) 0.17 0.15 0.51 0.35
Total attributable capital expenditures ($ millions) 393 397 1,512 1,363
Operating results Q4 2019 Q3 2019 2019 2018
Gold
Production (000s of ounces) 1,439 1,306 5,465 4,527
Cost of sales (Barrick's share) ($ per ounce) 1,046 1,065 1,005 892
Total cash costs ($ per ounce) 692 710 671 588
All-in sustaining costs ($ per ounce) 923 984 894 806
Copper
Production (millions of pounds) 117 112 432 383
Cost of sales (Barrick's share) ($ per pound) 2.26 2.00 2.14 2.40
C1 cash costs ($ per pound) 1.90 1.62 1.69 1.97
All-in sustaining costs ($ per pound) 2.82 2.58 2.52 2.82
Key performance
indicators
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Full-year gold production at upper end and copper production above guidance ranges;
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Gold costs per ounce down quarter on quarter;
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Debt net of cash at $2.2-billion, down 47 per cent from 2018;
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Adjusted net earnings per share up 46 per cent year on year;
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Increased efficiency drives significant year-over-year improvement in copper production and costs;
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Successful formation and integration of Nevada Gold Mines JV results in North American operations delivering at midpoint of its production and cost guidance ranges;
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Pueblo Viejo expansion evaluation and revised flowsheet enhances project;
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Strong performances across the board at Latin American, Asia Pacific and Africa Middle East operations;
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Proven and probable reserves increase net of depletion year on year at higher grade;
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Tanzanian disputes resolved with signing of framework agreement;
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Significant progress made in resolving tax-related issues in Mali to pave the way for further investment in the country;
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Non-core asset disposals reinforce strategy of concentrated tier one asset portfolio;
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Exceeded water recycling target of 70 per cent; recycled over 70 per cent of water used at the company's sites;
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Another quarterly dividend increase, up 40 per cent from Q3 to seven cents per share.
"We started the year with five tier one gold mines and ended it with six, thanks to the Nevada deal. We've also succeeded in replenishing our reserves and resources, net of depletion, at a higher grade."
Mr. Bristow said the pace of these achievements was attributable to a flattened management structure and the transfer of responsibilities from the corporate office to the operations.
"We now have agile multidisciplinary teams capable not only of executing complex, industry-leading corporate transactions but also of running our operations efficiently while pursuing new growth opportunities," he said.
"The significant reduction in Barrick's debt and the growth in its liquidity means that the company is now capable of managing its business and taking advantage of new opportunities independent of the vagaries of the capital markets. Our organic growth potential alone will support the 10-year production plan we'll be sharing with the market in March and our exploration teams are stocking our future pipeline."
Mr. Bristow noted that there was a strong focus on automation and clean energy across the group, while retaining and building on the operations' social licence remained a priority. Barrick's commitment to sustainability is evidenced by the fact that more than 80 per cent of the water used by its operations was recycled or reused.
"We believe that our ability to operate successfully depends on our ability to deliver long-term value to shareholders and other stakeholders, including the host countries, and on scrupulously managing our impact on the environment," he said.
Conference call and webcast
Please join the company for a conference call and webcast today at 11 a.m. ET/4 p.m. GMT to discuss the results.
United States and Canada: 1-800-319-4610
United Kingdom: 0808-101-2791
International: 1-416-915-3239
Webcast
The webcast will remain on the website for later viewing, and the conference call will be available for replay by telephone at 1-855-669-9658 (U.S. and Canada) and 1-604-674-8052 (international), access code 3969.
Barrick increases dividend 40 per cent for Q4 2019
Barrick Gold's board of directors has declared a dividend for the fourth quarter of 2019 of seven cents per share, a 40-per-cent increase on the previous quarter's dividend, payable on March 16, 2020, to shareholders of record at the close of business on Feb. 28, 2020.
Senior executive vice-president and chief financial officer Graham Shuttleworth said this was the third dividend increase this year and reflected the excellent performance for the year and Barrick's profitability and financial strength.
"The board believes the dividend increase is justified by the significant reduction in net debt and strong balance sheet, together with the growth in free cash flow supported by a robust five-year plan which we have shared with the market," said Mr. Shuttleworth.
"At the time the Barrick-Randgold merger was announced, the Q3 2018 dividend was three cents per share, which was subsequently increased to four cents for Q1 2019 after the merger, then increased to five cents for Q3 2019 on the back of our strong operating performance, and now to seven cents for Q4. This is consistent with the company's stated financial and operating objectives and in line with the commitment to shareholder returns made when the merger with Randgold was announced on Sept. 24, 2018."
Sustainability: at the heart
of Barrick's business strategy
Long before the current rise of investor interest in ESG (environmental, sustainability and governance) issues, Barrick and Randgold recognized that their ability to operate successfully was dependent on delivering long-term value to all stakeholders and to minimize their impact on the environment.
"At Barrick, ESG is not some box-ticking compliance function but a core strategy," says Mr. Bristow. "It starts at the top and permeates through the entire organization, and we believe that if it is managed well, it will drive our ability to deliver long-term profitability. It's not only a social imperative -- it's a commercial one."
Grant Beringer, Barrick's group sustainability executive, says every site is expected to minimize water and energy use, manage waste and land responsibly, and put employee safety first. The operations promote the social and economic development of their communities, and work constantly to form and maintain mutually beneficial partnerships with their stakeholders. Putting ESG into practice requires accountability to these stakeholders, which is why Barrick reports comprehensively and transparently on its sustainability performance and impacts.
"In 2019, there were no fatalities or high-impact environmental incidents at any of our sites. We recycled more than 70 per cent of the water we used and we made significant progress in curbing our carbon emissions, phasing in solar power at Loulo-Gounkoto, converting the power plant at Pueblo Viejo to natural gas and linking Veladero with grid power. We also developed and implemented biodiversity action plans at our priority sites and we're on track to roll these out across the group by 2021. Our investment in community development projects exceeded $23-million for the year," he said.
Commitment to excellence in geology
secures sustainability
Barrick's intensified focus on geocentric principles enables its geologists to increase existing reserves as well as to find their next major discovery, says Rob Krcmarov, executive vice-president, exploration and growth.
"Understanding the orebodies is the key to defining the revenue value of an asset as well as high-quality mine planning. It ensures that every bit of that value can be extracted safely and that the process maximizes the recovery rate," he says.
"Loulo-Gounkoto and Cortez-Goldrush are prime examples of how orebody knowledge and quality geological work have delivered world-class discoveries, and there is an abundance of similar opportunities across our portfolio."
Nevada Gold Mines' holdings encompass more than one million hectares across some of the best-endowed gold trends in North America, and early versions of unified and more sophisticated geological models have already identified new areas of interest there. At Fourmile, the inferred resource was increased by more than 170 per cent in 2019 thanks to an improved understanding of the mineralization controls, which also delivered a new high-grade discovery more than a kilometre from the main orebody.
In Latin America, the number of drill targets in the resource triangle had increased threefold by the end of the year. In the highly prospective and underexplored El Indio belt, advances in exploration technology and improved ore deposit models are being employed to probe for concealed gold deposits.
At Porgera in Papua New Guinea, a new drill hole, hundreds of metres beyond the pit, has validated the exploration team's prediction that the mineralized system is far larger than currently defined.
Africa remains a target-rich environment, with the Faraba complex in Mali and Bambadji in Senegal looking particularly promising. Both Loulo-Gounkoto in Mali and Kibali in the Democratic Republic of the Congo continue to replace their reserves and develop their resource growth opportunities, while at the recently consolidated North Mara mine in Tanzania, a new orebody model has identified an abundant upside.
"All our tier one mines have in excess of 10 years worth of reserves at a $1,200/ounce gold price. We expect that many of these will yield extensions and additional discoveries and will be producing for years to come. It is significant in this regard to note that Barrick replaced its reserves net of depletion and at a higher grade in 2019," says Mr. Krcmarov.
Barrick grows and improves reserve and resource base in a year of change
Barrick's annual resource and reserve declaration, published today as part of its fourth quarter results, shows an attributable gold mineral reserve increase of 14.5 per cent in ounces at a 7.7-per-cent higher grade after depletion from mining, reflecting a busy year which included the incorporation of Randgold Resources, the formation of the Nevada Gold Mines joint venture with Newmont and the disposal of KCGM. Attributable reserves now stand at 1,300 million tonnes at 1.68 grams per tonne for 71 million ounces of gold. This has been achieved through reserve additions greater than mining depletion at a number of the company's principal assets including Kibali, Loulo-Gounkoto, Veladero, Porgera, Goldstrike underground mine, Leeville/Portal underground mines, Mega Pit, Turquoise Ridge underground mine and Phoenix. This was achieved through the refocus on geology as a core discipline within the business and cost improvements at the Nevada joint venture, which allowed for the lowering of cut-off grades and the increase in reserves.
Global attributable mineral resources also increased, net of depletion with significant inferred mineral resource additions at Robertson and Fourmile in the Cortez district of Nevada, moving these new projects up the resource triangle. Goldrush, Robertson and Pueblo Viejo contain significant indicated and inferred mineral resources not currently in reserves and are three growth projects from which further reserve growth can be expected in the near future upon completion of feasibility studies. Total attributable measured and indicated mineral resources, now reported inclusive of reserves and at a $1,500/oz gold price, stand at 3,400 million tonnes at 1.55 g/t for 170 million ounces, with a further 940 million tonnes at 1.30 g/t for 39 million ounces in the inferred category, highlight the potential for growth in a higher gold price environment. All underground mineral resources are now reported within $1,500/oz stope optimizer shells and as such have shown significant growth in ounces albeit at lower grade, but which better reflects the opportunity at higher gold prices.
Total attributable copper mineral reserves now stand at 1,600 million tonnes at 0.38 per cent for 13 billion pounds of contained copper. The growth of copper mineral reserves was primarily driven by Lumwana due to the reclassification and remodelling of the Chimiwungo pit and cost improvements, with a small contribution from Zaldivar.
Total attributable silver mineral reserves are 900 million tonnes at 5.03 g/t for 150 million ounces of contained silver.
Taking tech to the next level
Trials and projects designed to make Barrick's operations more efficient as well as safer are driving the increased use of technology and automation across the group.
Centres of excellence have been established to advance autonomous applications for both surface and underground operations. This means that rather than having a range of operations trialling different systems, these will be proven on both technological and operating cost grounds at the centres. Should they pass these filters, they will be rolled out across the group.
In Nevada, which is the centre of surface automation and technology development for Barrick, the first stage of a project designed to enable the retrofitting of an autonomous system for Carlin's haulage fleet has been completed successfully. A number of trucks have already been retrofitted and work is now under way on increasing their speed from 15 kilometres per hour to 35 km/h, and installing portable locators that will allow manned and unmanned operations in the same zone. Following the creation of the Nevada Gold Mines JV, the autonomous drilling trials Barrick and Newmont had been running with different systems have been consolidated and will be tested at Phoenix and Lone Tree this year.
Kibali remains at the leading edge of underground automation in the global gold mining industry. After the implementation of the Sandvik automine multifleet system, which allows multiple autonomous machines to operate on the same haulage level; a trial to utilize this technology on the production levels has been completed successfully. Using the same operations centre as the haulage system, one operator can now control up to three machines acting semi-autonomously in three different zones.
Also at Kibali, the installation of the Newtrax system, which provides real-time visibility of the underground operations, including personnel and equipment tracking and proximity warning, machine health and productivity as well as automated control of ventilation fans, was completed and will be fully commissioned in Q1 of 2020.
With the rapid development of electric vehicles, Barrick has introduced a battery-powered development drill at Hemlo in a first step toward establishing the potential of this new technology. Further trials of battery equipment are planned, predominantly at Turquoise Ridge's underground operation, where it offers the potential of increasing production without having to make significant changes to the ventilation system.
People make a business
To build a modern mining business at the top of its field, you need best-in-class people to run its portfolio of best-in-class assets, says Mr. Bristow.
"That is why we are promoting a culture of inclusion across the organization and at every level. We've flattened the corporate structure to create a larger ownership base, we're sharing our strategic vision with all employees and the rollout of team effectiveness programs is reinforcing their understanding of and commitment to our high performance ethos. I want everyone to come to work in the morning inspired by the desire to help make Barrick the world's safest, most efficient, and most highly valued company," he says.
Attracting, training and retaining the right people are obviously the basis of this employee-oriented philosophy. Barrick offers executive and management development programs at leading universities to foster its next generation of world-class leaders. It also invests in and mentors young professionals through rotational training and internship programs for college graduates.
"Our successful recruitment drive is filling our pipeline of future talent with people who come from a broad range of backgrounds but who all have the desire and the ability to buy into the Barrick DNA," Mr. Bristow says.
Keeping the company's counsel
Rich Haddock has decided to defer his retirement and returns as Barrick's general counsel in order, he says, to participate in the exciting new developments at the company. He joined Barrick in 1997 and has been involved in some of the most important steps in its growth.
Poupak Bahamin has joined Barrick as deputy general counsel from Norton Rose Fulbright, where she was a partner and co-led its U.S. mining practice. She is the current chair of the World Association of Mining Lawyers.
Expansion project will unlock value, extend life at Pueblo Viejo
Studies continue to support a plant expansion project which will confirm Pueblo Viejo's status as one of the world's greatest gold mines by extending its life beyond 2040 at a production rate of about 800,000 ounces per year.
Mr. Bristow says a substantial portion of the mine's mineral resources would have been sterilized by the limitation of its tailings storage facility. Alongside the plant expansion project, which will significantly boost throughput, the planned increase in the mine's tailings management capacity has the potential to convert roughly 11 million ounces of indicated resources to reserves on a 100-per-cent basis.
"A study completed last quarter indicated that the throughput increase can be achieved without additional autoclaves. An oxidation upgrade will provide the required capacity at a lower capital and operating cost than the options previously considered," explained John Steele, Barrick's metallurgy, engineering and capital projects executive.
Pueblo Viejo currently has 9.5 million ounces of gold in reserves. Total measured and indicated mineral resources contain 25 million ounces and thus offer a significant opportunity to expand reserves.
The mine is an important component of the Dominican Republic's economy, contributing more than 20 per cent of the country's annual corporate tax revenue. It operates in close partnership with the government and the community, and recently committed its support for the development of a local cacao-based agribusiness.
Barrick back in business in Tanzania
Barrick says it has made significant progress in reshaping the Tanzanian operations it consolidated through the takeover of Acacia Mining in September last year in order to create a sustainable business capable of long-term value creation for its stakeholders.
At a signing ceremony with the President of the United Republic of Tanzania, Dr. John Pombe Magufuli, to formalize the establishment of a joint venture between Barrick and the government, Mr. Bristow said the joint venture, which will give the government full visibility of and participation in operating decisions made for and by the North Mara, Bulyanhulu and Buzwagi mines, was a pioneering move which would take Barrick's policy of partnership with its host countries to a new level.
The agreement also ratifies the creation of Twiga Minerals Corp., the management company jointly owned by the government and Barrick, that will oversee the management of Barrick's local operations, which are now owned 84 per cent by Barrick and 16 per cent by the government. The deal provides for a 50/50 sharing in the economic benefits generated by the mining operations after the recoupment of capital investments.
Following the ceremony, there are a number of matters which Barrick and the government will work together to implement. In particular, Barrick will partner with the University of Dar es Salaam and commit up to $10-million in financing over a 10-year period for training and skills development in the mining industry, and will also commit up to $40-million to upgrade the road between Bulyanhulu and Mwanza as well as constructing a housing compound and related infrastructure.
"Since taking over the operatorship, we have been engaging with local communities to restore the mines' social licence to operate and we are co-operating closely with the authorities to address the environmental issues at North Mara. In addition, we are working on a local supplier strategy as well as a community development plan to create sustainable economic opportunities for the people around our mines," Mr. Bristow said.
Mr. Bristow said there was a strong focus on rationalizing and optimizing mine plans. Following the successful transition to owner mining at North Mara, this has already delivered a reduction in costs and an increase in free cash flow. A similar result is expected at Bulyanhulu, where an integrated study aimed at optimizing the complete orebody should kick-start the resumption of operations there later this year.
"Reflecting our confidence in the potential of this highly prospective gold region, we have budgeted $50-million for brown and greenfields exploration here in 2020 alone and are looking at various opportunities to sustain and expand our operations," Mr. Bristow said.
In line with Barrick's commitment to employing and advancing locals at its mines, Tanzanian nationals are being recruited and trained to replace expatriate employees as has been done successfully at Barrick's other African operations. In addition, Acacia's offices outside Tanzania have been closed, and company records and day-to-day decision-making and accountability have been moved back to the operations in Tanzania.
Pioneering partnership with Tanzania off to
a strong start
Twiga Minerals Corp., the recently formed joint venture between the Tanzanian government and Barrick, has had its first two board meetings, and Willem Jacobs, Barrick's chief operating officer for Africa and the Middle East, says the positive energy in the room was palpable.
"Twiga has made a strong start, we're getting the Tanzanian operations back on track and we're building a strong foundation for sustainable profitability," says Mr. Jacobs. "We recognize that there's still a long way to go, considering that we also have to repair the damage these assets suffered during the previous operator's long standoff with the government," he said.
"There are many examples of exploitation by the extractive industries, as well as their hosts. With their short-term focus, these enterprises are incapable of delivering sustainable profitability. Similarly, those governments which flirt with resource nationalization fail to see that the engine of profitability drives their economies. With its 'win together, lose together' creed, Twiga is a true partnership which will create long-term benefits and share them equally."
Kibali soars past guidance
to post another record year
Barrick Gold's Kibali mine beat its 2019 production guidance of 750,000 ounces of gold by a substantial margin, delivering 814,027 ounces in another record year.
Mr. Bristow told a media briefing that Kibali's continuing stellar performance was a demonstration of how a modern, tier one gold mine could be developed and operated successfully in what is one of the world's most remote and infrastructurally underendowed regions. He also noted that in line with Barrick's policy of employing, training and advancing locals, the mine was managed by a majority Congolese team, supported by a corps of majority Congolese supervisors and personnel.
Already one of the world's most highly automated underground gold mines, Kibali continues its technological advance with the introduction of truck and drill training simulators and the integration of systems for personnel safety tracking and ventilation demand control. The simulators will also be used to train operators from Barrick's Tanzanian mines.
"The completion of the Kalimva-Ikamva prefeasibility study has delivered another viable opencast project which will help balance Kibali's opencast/underground ore ratio and enhance the flexibility of the mine plan. Down-plunge extension drilling at Gorumbwa has highlighted future underground potential and ongoing conversion drilling at KCD is delivering reserve replenishment. All in all, Kibali is well on track not only to meet its 10-year production targets but to extend them beyond this horizon," Mr. Bristow said.
"We're maintaining a strong focus on energy efficiency through the development of our grid stabilizer project, scheduled for commissioning in the second quarter of 2020. This uses new battery technology to offset the need for running diesel generators as a spinning reserve and ensures we maximize the use of renewable hydro power. The installation of three new elution diesel heaters will also help improve efficiencies and control power costs. It's worth noting that our clean energy strategy not only achieves cost and efficiency benefits but also once again reduces Kibali's environmental footprint."
Mr. Bristow said despite the pace of production and the size and complexity of the mine, Kibali was maintaining its solid safety and environmental records, certified by ISO 45001 and ISO 14001 accreditations. It also remained committed to community upliftment and local economic development. In 2019, it spent $158-million with Congolese contractors and suppliers and in December, it started work on a trial section for a new concrete road between Durba and the Watsa bridge.
Loulo-Gounkoto commits to new decade of delivery and investment
Barrick Gold's Loulo-Gounkoto complex has again demonstrated its mettle, exceeding its 2019 guidance with production of 714,802 ounces of gold.
Mr. Bristow told a briefing for local media that the complex continued to perform consistently to plan and was still managing to replace depleted reserves through successful brownfields exploration and resource conversion.
"With the development of the complex's third underground mine scheduled to start in the fourth quarter of this year, and an intensive exploration program in the Kenieba region, Loulo-Gounkoto has significant growth potential and is well placed to meet all the targets of its 10-year plan," he said.
In line with Barrick's clean energy strategy, Loulo-Gounkoto is pioneering the group's first solar power project. This is being developed in four phases, with the first scheduled for commissioning at the end of the first quarter and the last in the fourth quarter of this year. It will add 20 megawatts to the complex's grid, reduce the unit cost of its power and cut carbon emissions by about 40,000 tonnes per year. Mr. Bristow said it would serve as a model for the introduction of solar power elsewhere across Barrick, particularly at its North American operations.
Also being implemented at present is the Ramjack Newtrax project, which is setting the foundation for the automation and monitoring of the complex's underground mines through a fibre network.
Despite the high activity level, the complex maintained its solid safety record with lost-time injuries (LTIs) at Loulo decreasing from four to two year on year, and Gounkoto recording its second successive LTI-free year.
Mr. Bristow said Loulo-Gounkoto continued to invest in community health, education and economic development programs. One of these is the agricultural complex established and financed to the tune of $2.2-million.
This has produced its first crop of 48 young farmers who have been installed on 30 new farms and provided not only with the necessary technical and entrepreneurial skills, but with the credit to apply these effectively.
During 2019, Loulo-Gounkoto spent $313-million with local contractors and suppliers and continued developing local businesses by creating a $500,000 provision for an incubation project designed to incorporate local contractors into the mining industry.
"Over the past 23 years, Barrick and its legacy company Randgold Resources have contributed $7.2-billion to the Malian economy in the form of taxes, royalties, salaries and payments to local suppliers. Over the same period, our mines in Mali paid $2.7-billion in dividends, taxes and royalties to the state -- almost three times the $1-billion dividend received by Barrick," Mr. Bristow said.
"It is a cardinal principle of Barrick that our host countries and communities should share equitably in the benefits created by our operations. Some, such as skills development and employment creation, cannot be measured, but as these figures demonstrate, the quantifiable value we deliver to Mali is very substantial," Mr. Bristow said.
"This is also the product of a long and constructive partnership between the government of Mali and ourselves, and in this regard it is gratifying to report that we have made significant progress towards settling the dispute between us over tax and related issues which allows us to look forward to continuing to grow our partnership with the Mali government and its people."
2020 OPERATING AND CAPITAL EXPENDITURE GUIDANCE
Gold production and costs
2020
2020 forecast 2020 forecast all-in
attributable 2020 forecast cost forecast total sustaining
production (000s oz) of sales ($/oz) costs ($/oz) costs ($/oz)
Carlin (61.5%) 1,000-1,050 $920-$970 $760-$810 $1,000-$1,050
Cortez (61.5%) 450-480 980-1,030 640-690 910-960
Turquoise Ridge (61.5%) 430-460 900-950 540-590 690-740
Phoenix (61.5%) 100-120 1,850-1,900 700-750 920-970
Long Canyon (61.5%) 130-150 910-960 240-290 450-500
Nevada Gold Mines (61.5%) 2,100-2,250 970-1,020 660-710 880-930
Hemlo 200-220 960-1,010 800-850 1,200-1,250
North America 2,300-2,450 970-1,020 660-710 900-950
Pueblo Viejo (60%) 530-580 840-890 520-570 720-770
Veladero (50%) 240-270 1,220-1,270 670-720 1,250-1,300
Porgera (47.5%) 240-270 890-940 770-820 960-1,010
Latin America and Asia Pacific 1,000-1,100 930-980 610-660 890-940
Loulo-Gounkoto (80%) 500-540 1,050-1,100 620-670 970-1,020
Kibali (45%) 340-370 1,030-1,080 600-650 790-840
North Mara 240-270 750-800 570-620 830-880
Tongon (89.7%) 240-260 1,390-1,440 680-730 740-790
Bulyanhulu 30-50 1,210-1,260 790-840 1,110-1,160
Buzwagi 80-100 850-900 820-870 850-900
Africa and Middle East 1,450-1,600 1,040-1,090 640-690 870-920
Total attributable to Barrick 4,800-5,200 980-1,030 650-700 920-970
COPPER PRODUCTION AND COSTS
2020
2020 forecast 2020 forecast all-in
attributable 2020 forecast forecast C1 cash sustaining
production (M lb) cost of sales ($/lb) cash costs ($/lb) costs ($/lb)
Lumwana 250-280 $2.20-$2.40 $1.50-$1.70 $2.30-$2.60
Zaldivar (50%) 120-135 2.40-2.70 1.65-1.85 2.30-2.60
Jabal Sayid (50%) 60-70 1.75-2.00 1.40-1.60 1.50-1.70
Total copper (22) 440-500 2.10-2.40 1.50-1.80 2.20-2.50
CAPITAL EXPENDITURES
($ millions)
Attributable mine site sustaining $1,300-$1,500
Attributable project 300-400
Total attributable capital expenditures 1,600-1,900
CONSOLIDATED STATEMENTS OF INCOME
For the years ended Dec. 31
(in millions of United States dollars, except per share data)
2019 2018
Revenue $9,717 $7,243
Costs and expenses
Cost of sales 6,911 5,220
General and administrative expenses 212 265
Exploration, evaluation and project expenses 342 383
Impairment (reversals) charges (1,423) 900
Loss on currency translation 109 136
Closed mine rehabilitation 5 (13)
Income from equity investees (165) (46)
Other (income) expense (3,100) 90
Income before finance items and income taxes 6,826 308
Finance costs, net (469) (545)
Income (loss) before income taxes 6,357 (237)
Income tax expense (1,783) (1,198)
Net income (loss) $4,574 $(1,435)
Attributable to
Equity holders of Barrick Gold $3,969 $(1,545)
Non-controlling interests $605 $110
Earnings (loss) per share data attributable to the
equity holders of Barrick Gold
Net income (loss)
Basic $2.26 $(1.32)
Diluted $2.26 $(1.32)
We seek Safe Harbor.
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