Barrick reveals 3Q23 financial results

President and chief executive Mark Bristow said the 3Q23 performance was an improvement on the previous quarter’s and 4Q23 is expected to be better. Despite the projected second half improvement, gold production is forecast to be marginally below the low end of our annual guidance range. Copper is comfortably on track to meet its guidance for production and costs.

Gold production in 3Q23 was higher than 2Q23 driven by improved performances at Cortez, Turquoise Ridge, and Kibali. The ramp up at Pueblo Viejo is slower than planned. The 2024 Pueblo Viejo production forecast still exceeds 800 000 oz (100% basis). The company also confirmed that the Notice of Availability for the Final Environmental Impact Statement for Goldrush was published on October 27.

“Mining is a long game and we don’t manage Barrick by the quarter – our projection for a 30% increase in the production of gold-equivalent ounces by the end of this decade remains intact,” Bristow said.

Barrick’s other key growth projects – the development of the Reko Diq copper and gold mine in Pakistan, and the expansion of the Lumwana copper mine in Zambia – are making steady progress. Construction of Reko Diq is scheduled to start in 2025 targeting first production in 2028, and Lumwana’s expansion is scheduled on the same timetable. Reko Diq will rank among the world’s top 10 copper producers when it reaches full production, while the expanded Lumwana mine is forecast to produce at an annual production rate of 240 000 t of contained copper.

“Growing the copper portfolio is one of our strategic priorities, and when these two mines are in full production, they will promote Barrick to the premier league of copper producers alongside its peerless gold portfolio. In the meantime, we’re using our very successful Jabal Sayid copper mine in Saudi Arabia as a springboard for the discovery of new opportunities within the Kingdom and around the Red Sea to Egypt, where we believe the Arabian-Nubian Shield is poised to become a major new mining destination,” Bristow added.

Barrick has exploration across its global portfolio, aiming both to sustain the company’s record of reserves replacement, and to find its next million-ounce discovery. Since the merger with Randgold Resources in 2019, Barrick has replaced 125% of its depleted reserves (exclusive of divestments and acquisitions on a gold equivalent basis).

Strong drill results at Nevada Gold Mines support its three-year resource and replacement plan and brownfields exploration is highlighting the potential in the Africa and Middle East region. The exploration portfolios of South, Central, and North America are being expanded.

Bristow described Barrick’s financial performance for the quarter as strong, noting that operating cash flows grew by 35% to more than US$1 billion, free cash flow was up significantly to US$359 million, net earnings per share increased 24% to US$0.21 per share and adjusted net earnings per share rose 26% to US$0.24 per share. The quarterly dividend was maintained at 10 cents per share.

“Our robust balance sheet secures Barrick’s capacity to continue to invest in growth projects, both new and existing. These projects are not required to maintain our existing production profile; they’re exceptional opportunities to drive real long-term value creation, and our team has shown that they’re more than capable of fully delivering on them,” Bristow commented.

Read the article online at: https://www.globalminingreview.com/finance-business/08112023/barrick-announces-3q23-financial-results/