All amounts expressed in US dollars
Second quarter results show year-to-date gold production of 2.4 million ounces, at the mid-point of its 4.6 million to 5 million ounce annual guidance, driven by strong operating performances, particularly from
Operating cash flow exceeded
Key Performance Indicators
- Continued solid performance positions Barrick well within annual production guidance, despite Covid-19 challenges
- Improvement in safety management following increased focus
- Strong cash generation highlights quality of assets and leverage to gold price
- Barrick continues to be vigilant in its approach to contain the impact of Covid-19
- Higher gold prices also result in higher royalty payments and costs
- Strong operating performance for copper with costs per pound at lower end of the guidance range
- Operating Cash Flow in excess of
$1.0 billion and Free Cash Flow1 greater than$0.5 billion for the quarter - Net debt down almost 25% to
$1.4 billion with no significant maturities until 2033 - Net earnings per share of
20 cents ; adjusted net earnings per share2 up 44% to23 cents for the quarter - Strong operating performance from Tier One12 assets, with Pueblo Viejo production impacted by planned maintenance shutdown
- Veladero production impacted by Argentina’s Covid-19 movement and social distancing restrictions
- 30% of stockpiled concentrate shipped from
Tanzania and first$100 million paid to Government - Agreement reached in
Mali to extend the Loulo convention to 2038 - Significant exploration drill results from Nevada,
Dominican Republic ,Mali andTanzania - Pueblo Viejo expansion, Goldrush development,
Turquoise Ridge shaft and other key projects remain on track despite Covid-19 challenges - Non-core asset disposal strategy delivers
$1.5 billion value realization, including$1.25 billion in cash, with more to come - Barrick increases quarterly dividend by 14% to
$0.08 per share
Financial and Operating Highlights
Financial Results | Q2 2020 | Q1 2020 | Q2 2019 |
Realized gold price3,4 ($ per ounce) | 1,725 | 1,589 | 1,317 |
Net earnings5 ($ millions) | 357 | 400 | 194 |
Adjusted net earnings2 ($ millions) | 415 | 285 | 154 |
Net cash provided by operating activities ($ millions) | 1,031 | 889 | 434 |
Free cash flow1 ($ millions) | 522 | 438 | 55 |
Net earnings per share ($) | 0.20 | 0.22 | 0.11 |
Adjusted net earnings per share2 ($) | 0.23 | 0.16 | 0.09 |
Attributable capital expenditures6 ($ millions) | 402 | 364 | 361 |
Operating Results | Q2 2020 | Q1 2020 | Q2 2019 |
Gold | |||
Production4 (000s of ounces) | 1,149 | 1,250 | 1,353 |
Cost of sales (Barrick's share)4,7 ($ per ounce) | 1,075 | 1,020 | 964 |
Total cash costs4,8 ($ per ounce) | 716 | 692 | 651 |
All-in sustaining costs4,8 ($ per ounce) | 1,031 | 954 | 869 |
Copper | |||
Production9 (millions of pounds) | 120 | 115 | 97 |
Cost of sales (Barrick's share)9,10 ($ per pound) | 2.08 | 1.96 | 2.04 |
C1 cash costs8,9 ($ per pound) | 1.55 | 1.55 | 1.59 |
All-in sustaining costs8,9 ($ per pound) | 2.15 | 2.04 | 2.28 |
President and chief executive
“Our flattened and decentralized management structure was a major factor in contending with Covid-19 while at the same time continuing to meet short-term targets and making significant progress towards our strategic objectives. Our major projects, including the expansion of Pueblo Viejo, the Goldrush development and the
“We also maintained our strong environmental, social and governance focus during this difficult period. The Lost Time Injury Frequency Rate decreased by 15.6% quarter on quarter, and we further reduced our carbon emissions and continued to improve our water recycling and reuse performance.”
Dealing with the operations, Bristow said in
In the
In
Porgera in
Bristow said during the quarter there had been significant exploration results from Nevada, the
Q2 2020 Results Presentation
Webinar and Conference Call
President and CEO
- Go to the webinar
US andCanada (toll-free) 1 800 319 4610UK (toll-free) 0808 101 2791
International (toll) +1 416 915 3239
The Q2 2020 presentation materials will be available on Barrick’s website at www.barrick.com and the webinar will remain on the website for later viewing.
QUARTERLY DIVIDEND INCREASED BY 14%
Barrick’s Board of Directors has declared a dividend for the second quarter of 2020 of
Senior executive vice-president and chief financial officer
“The Board believes that the dividend increase is sustainable and reflects the ongoing robust performance of our operations and continued improvement in the strength of our balance sheet, with total liquidity of
STRONG STRUCTURE, PARTNERSHIP CULTURE DRIVE PROMPT AND EFFECTIVE PANDEMIC RESPONSE
A fit-for-purpose management structure coupled with its deeply embedded health and welfare commitment enabled Barrick to buffer the impact of the Covid-19 pandemic on its business, people and communities as well as to provide vital support to its host governments.
President and chief executive
“Caring for the wellbeing of our employees and communities is a key characteristic of the Barrick DNA. Our financial strength, well-established prevention practices and procedures, and the experience we gained from dealing with two Ebola pandemics around our African operations stood us in good stead as we faced this new and unprecedented challenge,” he says.
“At all our sites, strict access, screening, sanitation and isolation measures were implemented and through our community engagement channels, we also took the lead in introducing these protocols, supported by education programs, to our neighbours. The provision of rapid antibody testing kits to local clinics and hospitals was particularly valuable in helping them to manage the pandemic’s initial onslaught.”
Barrick’s group sustainability executive,
In the
“We recognize the importance our tax contribution makes to Nevada’s economy and NGM is stepping up to support the state at a time when other businesses there find themselves in financial distress,” says Bristow.
“In Nevada, as elsewhere in our global operations, our aid has not been prompted by self-interested commercial considerations, but by Barrick’s foundational philosophy of partnership, which in this time of crisis has again demonstrated its value to our stakeholders.”
Beringer notes that Barrick operates in 12 countries, each with its own culture and at different stages of economic development. Consequently, aid was tailored to their particular needs in consultation with their governments.
“In Latin America, support has been focused on infrastructural and equipment needs. In
“The commitments our sites made to community investment and development prior to the Covid-19 outbreak remain intact and are being fulfilled in conjunction with our pandemic support programs. These include major projects such as the Durba road in the DRC and the shift to local contractors and suppliers in Tanzania.”
At the group level, all Barrick’s significant expansion projects remain on track, with internal teams having been trained to lessen reliance on external contractors. Among these are the solar power programs in
When Barrick took over the Acacia assets in
- Relations between the former management and the government as well as the community had broken down completely.
- North Mara had been closed under an environmental protection order.
- Bulyanhulu had been overrun by some 20,000 illegal miners and was no longer operating.
- The government had frozen all concentrate sales as well as the concentrate containers held under court order at port.
- There were hundreds of longstanding grievances, property disputes and accusations of human rights abuses at the mines.
- No geological block modelling, mineral resource management or mine planning had been done at the mines.
- Survey data was significantly incorrect, and capital allocation as well as executive decision-making were haphazard at best.
The first priority of
Greatly assisted by the Twiga board, Barrick and the affected communities soon agreed on a way forward to settle all the legacy land claims at North Mara.
Barrick’s DNA was infused into
Operationally, the team developed and implemented a new tailings and water management plan for North Mara. The mine could then resume production and the ban on doré sales was lifted. Getting to grips with the geology, a new block model that confirmed the acquisition assumptions and upside, was completed. Ten new exploration permits around North Mara have also been awarded by the government.
A study on restarting the Bulyanhulu mine projected the resumption of underground mining activities at the end of 2020, in line with guidance. Work on the structural integrity of the metallurgical plant commenced upon completion of the Acacia transaction, and refurbishment of the shaft is scheduled to start in August.
Another study to determine extensions at Buzwagi is underway and a local content plan has been submitted to the government.
“The foundation has been laid for delivery, and I can see North Mara and Bulyanhulu together eventually ranking as a Tier One12 complex, with annual production in excess of 500,000 ounces at a cost in the lower half of the industry curve, well beyond 10 years,” he says.
CORTEZ LEADS THE WAY IN NEVADA
Cortez continues to produce higher than planned ounces at a lower cost, confirming its status as Nevada Gold Mines’ flagship as well as the leader in the general move from lower grade open pit operations to higher grade underground mining.
Its outperformance is being driven by the underground operation, where improved efficiencies supported mining at higher production rates. On the back of this performance, the mineral resource management team has stepped up their game to test for geological extensions and the potential feeders of the known mineralization which could significantly extend the Life of Mine, enabling it to maintain its Tier One status without the assistance of Goldrush.
During the past quarter, the Goldrush project team was integrated into the Cortez organization. Development of the Goldrush declines is ahead of plan and the transition from contractor to owner operation has been brought forward to 2020. The underground management team is currently developing operational readiness for the acceleration of the project, scheduled to expose first ore in the first half of 2021. Permits are expected in late 2021, paving the way for the start of final construction activities which
In the meantime, Barrick’s nearby Fourmile project, which has not yet been included in the Nevada Gold Mines portfolio, has reported very significant drill results confirming the impressive high-grade of the mineralization as well as its exciting future potential.
EXPLORATION MAINTAINS BARRICK’S FOCUS ON THE FUTURE
Despite the challenges presented by the Covid-19 pandemic, Barrick’s exploration teams have continued to add to the mineral inventory that is needed to sustain a profitable mining enterprise.
During the past quarter, there were significant drill results from all regions. In Nevada, these included the high-grade intercepts at the Fourmile project, the highest grade ever intercept at North Leeville and the thick intercepts at
At Pueblo Viejo, in
During the quarter, the exploration teams in
McGrath has worked with and led exploration teams in
Sastre was previously mine operations and technical services manager at Veladero. His wide skills base ranges from exploration through ore control to resource modelling. He was closely involved with Exeter’s discovery and delineation of the Caspiche orebody in
RECRUITING AND DEVELOPING A NEW GENERATION OF LEADERS
Barrick employs more than 20,000 people along with another 21,000 contractors in 12 countries across the world, and its recruitment and development policies are designed to ensure that they can be the best of the best.
The company has a strong tradition of hiring locally for operational as well as management roles. In its
To ensure that its people profile is aligned to societal and technological changes, Barrick is also driving the employment of younger candidates as well as women. In the year to date, new hire percentages under 30 years of age were 50% in AME, 46% in NA and 42% in LATAM & AP.
Mining is traditionally a male-dominated industry and Barrick is making a determined effort to recruit more women through targeted campaigns. In NA, 15% of employees are women, and 25% of new hires so far this year were women. In LATAM & AP, where 11% of all positions are held by women, hiring rates were 18% in Q1 and 33% in Q2, reflecting the region’s improving ability to source and employ women candidates. The AME region has cultural obstacles to the employment of women, but there too the position is improving, with new placements up to 10% from a 6% base.
Each region has identified high-potential women for further career development at all levels of the business. Barrick also has partnered with leading universities to customize development programs designed to meet its specific needs.
In NA, 40% of the current participants in Barrick’s Greenfields Talent Program are women, who spend 12 months working in an operational environment, then lead a crew for six months as relief supervisor before taking up their technical positions with
“We want to have the right skills in the right jobs, but we also want to make sure that we have an appropriately diverse workforce, and that by investing in young people, we are building a new generation of leaders to take Barrick into the future,” says president and chief executive
PUEBLO VIEJO AWARDED GOLD SEAL FOR GENDER EQUALITY
The Gold Seal is the highest level of a new gender equality certification and it was awarded to Pueblo Viejo (PV) following a meticulous review by the
The certifications reflect PV’s commitment to equal rights, benefits and opportunities for all employees, regardless of gender, and confirm that its workplace policies align with the United Nation’s
Appendix 1
2020 Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS | ||||
2020 forecast attributable production (000s oz) | 2020 forecast cost of sales15 ($/oz) | 2020 forecast total cash costs8 ($/oz) | 2020 forecast all-in sustaining costs8 ($/oz) | |
1,000 - 1,050 | 920 - 970 | 760 - 810 | 1,000 - 1,050 | |
Cortez (61.5%) | 450 - 480 | 980 - 1,030 | 640 - 690 | 910 - 960 |
430 - 460 | 900 - 950 | 540 - 590 | 690 - 740 | |
100 - 120 | 1,850 - 1,900 | 700 - 750 | 920 - 970 | |
130 - 150 | 910 - 960 | 240 - 290 | 450 - 500 | |
2,100 - 2,250 | 970 - 1,020 | 660 - 710 | 880 - 930 | |
200 - 220 | 960 - 1,010 | 800 - 850 | 1,200 - 1,250 | |
2,300 - 2,450 | 970 - 1,020 | 660 - 710 | 900 - 950 | |
Pueblo Viejo (60%) | 530 - 580 | 840 - 890 | 520 - 570 | 720 - 770 |
Veladero (50%) | 240 - 270 | 1,220 - 1,270 | 670 - 720 | 1,250 - 1,300 |
Porgera (47.5%)17 | ||||
800 - 900 | 930 - 980 | 610 - 660 | 890 - 940 | |
Loulo-Gounkoto (80%) | 500 - 540 | 1,050 - 1,100 | 620 - 670 | 970 - 1,020 |
Kibali (45%) | 340 - 370 | 1,030 - 1,080 | 600 - 650 | 790 - 840 |
North Mara (84%)18 | 240 - 270 | 750 - 800 | 570 - 620 | 830 - 880 |
Tongon (89.7%) | 240 - 260 | 1,390 - 1,440 | 680 - 730 | 740 - 790 |
Bulyanhulu (84%)18 | 30 - 50 | 1,210 - 1,260 | 790 - 840 | 1,110 - 1,160 |
Buzwagi (84%)18 | 80 - 100 | 850 - 900 | 820 - 870 | 850 - 900 |
1,450 - 1,600 | 1,040 - 1,090 | 640 - 690 | 870 - 920 | |
Total Attributable to Barrick18,19,20 | 4,600 - 5,000 | 980 - 1,030 | 650 - 700 | 920 - 970 |
COPPER PRODUCTION AND COSTS | ||||
2020 forecast attributable production (Mlbs) | 2020 forecast cost of sales15 ($/lb) | 2020 forecast C1 cash costs11 ($/lb) | 2020 forecast all-in sustaining costs11 ($/lb) | |
Lumwana | 250 - 280 | 2.20 - 2.40 | 1.50 - 1.70 | 2.30 - 2.60 |
Zaldívar (50%) | 120 - 135 | 2.40 - 2.70 | 1.65 - 1.85 | 2.30 - 2.60 |
60 - 70 | 1.75 - 2.00 | 1.40 - 1.60 | 1.50 - 1.70 | |
Total Copper21 | 440 - 500 | 2.10 - 2.40 | 1.50 - 1.80 | 2.20 - 2.50 |
ATTRIBUTABLE CAPITAL EXPENDITURES | ||||
($ millions) | ||||
Attributable minesite sustaining | 1,300 - 1,500 | |||
Attributable project | 300 - 400 | |||
Total attributable capital expenditures22 | 1,600 - 1,900 |
2020 Outlook Assumptions and Economic Sensitivity Analysis23
2020 Guidance Assumption | Hypothetical Change | Impact on EBITDA (millions)24 | Impact on AISC8,11 | ||
Gold revenue, net of royalties25 | |||||
- | - | - | |||
Copper revenue, net of royalties | +/- | +/ | +/- |
Appendix 2
Production and Cost Summary – Gold
For the three months ended | |||||||||||||||||||
% Change | % Change | ||||||||||||||||||
Gold produced (000s oz attributable basis) | 521 | 526 | (1 | ) | % | 526 | (1 | ) | % | ||||||||||
Gold produced (000s oz 100% basis) | 847 | 855 | (1 | ) | % | 548 | 55 | % | |||||||||||
Cost of sales ($/oz) | 1,055 | 995 | 6 | % | 842 | 25 | % | ||||||||||||
Total cash costs ($/oz)b | 728 | 690 | 6 | % | 594 | 23 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 985 | 952 | 3 | % | 752 | 31 | % | ||||||||||||
Gold produced (000s oz attributable basis) | 235 | 253 | (7 | ) | % | 181 | 30 | % | |||||||||||
Gold produced (000s oz 100% basis) | 382 | 411 | (7 | ) | % | 181 | 111 | % | |||||||||||
Cost of sales ($/oz) | 1,037 | 970 | 7 | % | 1,116 | (7 | ) | % | |||||||||||
Total cash costs ($/oz)b | 850 | 776 | 10 | % | 769 | 11 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 1,130 | 1,007 | 12 | % | 1,088 | 4 | % | ||||||||||||
Cortez (61.5%)d | |||||||||||||||||||
Gold produced (000s oz attributable basis) | 132 | 128 | 3 | % | 280 | (53 | ) | % | |||||||||||
Gold produced (000s oz 100% basis) | 215 | 208 | 3 | % | 280 | (23 | ) | % | |||||||||||
Cost of sales ($/oz) | 870 | 876 | (1 | ) | % | 719 | 21 | % | |||||||||||
Total cash costs ($/oz)b | 613 | 614 | 0 | % | 489 | 25 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 950 | 1,009 | (6 | ) | % | 561 | 69 | % | |||||||||||
Gold produced (000s oz attributable basis) | 79 | 84 | (6 | ) | % | 65 | 22 | % | |||||||||||
Gold produced (000s oz 100% basis) | 128 | 137 | (6 | ) | % | 87 | 47 | % | |||||||||||
Cost of sales ($/oz) | 1,073 | 1,032 | 4 | % | 665 | 61 | % | ||||||||||||
Total cash costs ($/oz)b | 753 | 668 | 13 | % | 569 | 32 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 829 | 806 | 3 | % | 667 | 24 | % | ||||||||||||
Gold produced (000s oz attributable basis) | 35 | 35 | 0 | % | |||||||||||||||
Gold produced (000s oz 100% basis) | 57 | 57 | 0 | % | |||||||||||||||
Cost of sales ($/oz) | 1,726 | 1,583 | 9 | % | |||||||||||||||
Total cash costs ($/oz)b | 725 | 737 | (2 | ) | % | ||||||||||||||
All-in sustaining costs ($/oz)b | 957 | 914 | 5 | % | |||||||||||||||
Gold produced (000s oz attributable basis) | 40 | 26 | 54 | % | |||||||||||||||
Gold produced (000s oz 100% basis) | 65 | 42 | 54 | % | |||||||||||||||
Cost of sales ($/oz) | 1,009 | 1,025 | (2 | ) | % | ||||||||||||||
Total cash costs ($/oz)b | 308 | 345 | (11 | ) | % | ||||||||||||||
All-in sustaining costs ($/oz)b | 430 | 561 | (23 | ) | % | ||||||||||||||
Pueblo Viejo (60%) | |||||||||||||||||||
Gold produced (000s oz attributable basis) | 111 | 143 | (22 | ) | % | 124 | (10 | ) | % | ||||||||||
Gold produced (000s oz 100% basis) | 185 | 238 | (22 | ) | % | 207 | (10 | ) | % | ||||||||||
Cost of sales ($/oz) | 935 | 767 | 22 | % | 852 | 10 | % | ||||||||||||
Total cash costs ($/oz)b | 579 | 502 | 15 | % | 557 | 4 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 720 | 626 | 15 | % | 702 | 3 | % | ||||||||||||
Loulo-Gounkoto (80%) | |||||||||||||||||||
Gold produced (000s oz attributable basis) | 141 | 141 | 0 | % | 147 | (4 | ) | % | |||||||||||
Gold produced (000s oz 100% basis) | 176 | 177 | 0 | % | 184 | (4 | ) | % | |||||||||||
Cost of sales ($/oz) | 1,012 | 1,002 | 1 | % | 1,072 | (6 | ) | % | |||||||||||
Total cash costs ($/oz)b | 639 | 614 | 4 | % | 598 | 7 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 1,030 | 891 | 16 | % | 811 | 27 | % | ||||||||||||
Kibali (45%) | |||||||||||||||||||
Gold produced (000s oz attributable basis) | 90 | 91 | (1) | % | 95 | (5 | ) | % | |||||||||||
Gold produced (000s oz 100% basis) | 201 | 201 | (1) | % | 211 | (5 | ) | % | |||||||||||
Cost of sales ($/oz) | 1,067 | 1,045 | 2 | % | 868 | 23 | % | ||||||||||||
Total cash costs ($/oz)b | 617 | 582 | 6 | % | 540 | 14 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 739 | 773 | (4) | % | 651 | 14 | % | ||||||||||||
Veladero (50%) | |||||||||||||||||||
Gold produced (000s oz attributable basis) | 49 | 75 | (35) | % | 75 | (35 | ) | % | |||||||||||
Gold produced (000s oz 100% basis) | 98 | 150 | (35) | % | 150 | (35 | ) | % | |||||||||||
Cost of sales ($/oz) | 1,228 | 1,182 | 4 | % | 1,186 | 4 | % | ||||||||||||
Total cash costs ($/oz)b | 801 | 788 | 2 | % | 746 | 7 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 1,383 | 1,266 | 9 | % | 1,046 | 32 | % | ||||||||||||
Porgera (47.5%) | |||||||||||||||||||
Gold produced (000s oz attributable basis) | 24 | 62 | (61) | % | 61 | (61 | ) | % | |||||||||||
Gold produced (000s oz 100% basis) | 51 | 131 | (61) | % | 128 | (61 | ) | % | |||||||||||
Cost of sales ($/oz) | 1,141 | 1,097 | 4 | % | 1,032 | 11 | % | ||||||||||||
Total cash costs ($/oz)b | 875 | 941 | (7) | % | 893 | (2 | ) | % | |||||||||||
All-in sustaining costs ($/oz)b | 1,046 | 1,089 | (4) | % | 1,112 | (6 | ) | % | |||||||||||
Tongon (89.7%) | |||||||||||||||||||
Gold produced (000s oz attributable basis) | 64 | 61 | 5 | % | 61 | 5 | % | ||||||||||||
Gold produced (000s oz 100% basis) | 71 | 68 | 5 | % | 68 | 5 | % | ||||||||||||
Cost of sales ($/oz) | 1,275 | 1,368 | (7) | % | 1,562 | (18 | ) | % | |||||||||||
Total cash costs ($/oz)b | 688 | 762 | (10) | % | 750 | (8 | ) | % | |||||||||||
All-in sustaining costs ($/oz)b | 745 | 788 | (5) | % | 802 | (7 | ) | % | |||||||||||
Gold produced (000s oz) | 54 | 57 | (5) | % | 55 | (2 | ) | % | |||||||||||
Cost of sales ($/oz) | 1,268 | 1,119 | 13 | % | 953 | 33 | % | ||||||||||||
Total cash costs ($/oz)b | 1,080 | 945 | 14 | % | 822 | 31 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 1,456 | 1,281 | 14 | % | 1,015 | 43 | % | ||||||||||||
North Mara (84%)g | |||||||||||||||||||
Gold produced (000s oz attributable basis) | 68 | 65 | 5 | % | 76 | (11 | ) | % | |||||||||||
Gold produced (000s oz 100% basis) | 81 | 77 | 5 | % | 119 | (32 | ) | % | |||||||||||
Cost of sales ($/oz) | 1,040 | 959 | 8 | % | 800 | 30 | % | ||||||||||||
Total cash costs ($/oz)b | 724 | 646 | 12 | % | 539 | 34 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 1,166 | 816 | 43 | % | 675 | 73 | % | ||||||||||||
Buzwagi (84%)g | |||||||||||||||||||
Gold produced (000s oz attributable basis) | 20 | 22 | (9) | % | 19 | 5 | % | ||||||||||||
Gold produced (000s oz 100% basis) | 24 | 27 | (9) | % | 30 | (20 | ) | % | |||||||||||
Cost of sales ($/oz) | 909 | 1,373 | (34) | % | 1,198 | (24 | ) | % | |||||||||||
Total cash costs ($/oz)b | 751 | 1,275 | (41) | % | 1,099 | (32 | ) | % | |||||||||||
All-in sustaining costs ($/oz)b | 770 | 1,288 | (40) | % | 1,150 | (33 | ) | % | |||||||||||
Bulyanhulu (84%)g | |||||||||||||||||||
Gold produced (000s oz attributable basis) | 7 | 7 | 0 | % | 6 | 17 | % | ||||||||||||
Gold produced (000s oz 100% basis) | 8 | 9 | 0 | % | 9 | (11 | ) | % | |||||||||||
Cost of sales ($/oz) | 1,658 | 1,685 | (2) | % | 1,217 | 36 | % | ||||||||||||
Total cash costs ($/oz)b | 950 | 686 | 38 | % | 525 | 81 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 1,014 | 906 | 12 | % | 666 | 52 | % | ||||||||||||
Kalgoorlie (50%)h | |||||||||||||||||||
Gold produced (000s oz attributable basis) | 57 | (100 | ) | % | |||||||||||||||
Gold produced (000s oz 100% basis) | 114 | (100 | ) | % | |||||||||||||||
Cost of sales ($/oz) | 1,038 | (100 | ) | % | |||||||||||||||
Total cash costs ($/oz)b | 846 | (100 | ) | % | |||||||||||||||
All-in sustaining costs ($/oz)b | 1,204 | (100 | ) | % | |||||||||||||||
Total Attributable to Barricki | |||||||||||||||||||
Gold produced (000s oz) | 1,149 | 1,250 | (8) | % | 1,353 | (15 | ) | % | |||||||||||
Cost of sales ($/oz)j | 1,075 | 1,020 | 5 | % | 964 | 12 | % | ||||||||||||
Total cash costs ($/oz)b | 716 | 692 | 3 | % | 651 | 10 | % | ||||||||||||
All-in sustaining costs ($/oz)b | 1,031 | 954 | 8 | % | 869 | 19 | % |
a. Represents the combined results of Cortez, Goldstrike (including our 60% share of South Arturo) and our 75% interest in
b. 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 to the most directly comparable IFRS measure, please see pages 79 to 103 of our second quarter MD&A.
c. On
d. On
e. Barrick owned 75% of
f. A 61.5% interest in these sites was acquired as a result of the formation of Nevada Gold Mines on
g. Formerly known as
h. On
i. Excludes Pierina; Lagunas Norte starting in the fourth quarter of 2019; and Golden Sunlight and Morila (40%) starting in the third quarter of 2019 which are producing incidental ounces as they reach the end of their mine lives.
j. Cost of sales per ounce (Barrick’s share) is calculated as gold cost of sales on an attributable basis (excluding sites in care and maintenance) divided by gold equity ounces sold.
Production and Cost Summary – Copper
For the three months ended | ||||||||||||
% Change | % Change | |||||||||||
Lumwana | ||||||||||||
Copper production (Mlbs) | 72 | 64 | 13 | % | 49 | 47 | % | |||||
Cost of sales ($/lb) | 2.06 | 1.94 | 6 | % | 2.07 | 0 | % | |||||
C1 cash costs ($/lb)a | 1.55 | 1.63 | (5 | ) | % | 1.70 | (9 | ) | % | |||
All-in sustaining costs ($/lb)a | 2.27 | 2.26 | 0 | % | 2.78 | (18 | ) | % | ||||
Zaldívar (50%) | ||||||||||||
Copper production (Mlbs attributable basis) | 28 | 31 | (10 | ) | % | 32 | (13 | ) | % | |||
Copper production (Mlbs 100% basis) | 56 | 62 | (10 | ) | % | 64 | (13 | ) | % | |||
Cost of sales ($/lb) | 2.52 | 2.39 | 5 | % | 2.32 | 9 | % | |||||
C1 cash costs ($/lb)a | 1.79 | 1.71 | 5 | % | 1.61 | 11 | % | |||||
All-in sustaining costs ($/lb)a | 2.09 | 1.99 | 5 | % | 1.85 | 13 | % | |||||
Copper production (Mlbs attributable basis) | 20 | 20 | 0 | % | 16 | 25 | % | |||||
Copper production (Mlbs 100% basis) | 40 | 40 | 0 | % | 32 | 25 | % | |||||
Cost of sales ($/lb) | 1.41 | 1.28 | 10 | % | 1.45 | (3 | ) | % | ||||
C1 cash costs ($/lb)a | 1.14 | 0.97 | 18 | % | 1.22 | (7 | ) | % | ||||
All-in sustaining costs ($/lb)a | 1.41 | 1.11 | 27 | % | 1.31 | 8 | % | |||||
Total Copper | ||||||||||||
Copper production (Mlbs attributable basis) | 120 | 115 | 4 | % | 97 | 24 | % | |||||
Cost of sales ($/lb)b | 2.08 | 1.96 | 6 | % | 2.04 | 2 | % | |||||
C1 cash costs ($/lb)a | 1.55 | 1.55 | 0 | % | 1.59 | (3 | ) | % | ||||
All-in sustaining costs ($/lb)a | 2.15 | 2.04 | 5 | % | 2.28 | (6 | ) | % |
a. 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 to the most directly comparable IFRS measure, please see pages 79 to 103 of our second quarter MD&A.
b. Cost of sales per pound (Barrick’s share) is calculated as copper cost of sales plus our equity share of cost of sales attributable to Zaldívar and
Technical Information
The scientific and technical information contained in this press release has been reviewed and approved by
All mineral reserve and mineral resource estimates are estimated in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Unless otherwise noted, such mineral reserve and mineral resource estimates are as of
Endnotes
Endnote 1
“Free cash flow” is a non-GAAP financial performance measure which deducts capital expenditures from net cash provided by operating activities. Barrick believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other companies. Free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on this non-GAAP measure are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
($ millions) | For the three months ended | For the six months ended | ||||||||
Net cash provided by operating activities | 1,031 | 889 | 434 | 1,920 | 954 | |||||
Capital expenditures | (509) | (451) | (379) | (960) | (753) | |||||
Free cash flow | 522 | 438 | 55 | 960 | 201 |
Endnote 2
“Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial performance measures. Adjusted net earnings excludes the following from net earnings: certain impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and investments; gains (losses) and other one-time costs relating to acquisitions or dispositions; foreign currency translation gains (losses); significant tax adjustments not related to current period earnings; unrealized gains (losses) on non-hedge derivative instruments; and the tax effect and non-controlling interest of these items. The Company uses this measure internally to evaluate our underlying operating performance for the reporting periods presented and to assist with the planning and forecasting of future operating results. Barrick believes that adjusted net earnings is a useful measure of our performance because these adjusting items do not reflect the underlying operating performance of our core mining business and are not necessarily indicative of future operating results. Adjusted net earnings and adjusted net earnings per share are intended to provide additional information only and do not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on these non-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to Net Earnings per Share, Adjusted Net Earnings and Adjusted Net Earnings per Share
($ millions, except per share amounts in dollars) | For the three months ended | For the six months ended | ||||||||
Net earnings attributable to equity holders of the Company | 357 | 400 | 194 | 757 | 305 | |||||
Impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and investmentsa | 23 | (336) | 12 | (313) | 15 | |||||
Acquisition/disposition (gains) lossesb | 8 | (60) | (12) | (52) | (12) | |||||
Loss (gain) on currency translation | 2 | 16 | (6) | 18 | 16 | |||||
Significant tax adjustmentsc | (7) | (44) | (83) | (51) | (75) | |||||
Other expense adjustmentsd | 48 | 98 | 58 | 146 | 104 | |||||
Tax effect and non-controlling intereste | (16) | 211 | (9) | 195 | (15) | |||||
Adjusted net earnings | 415 | 285 | 154 | 700 | 338 | |||||
Net earnings per sharef | 0.20 | 0.22 | 0.11 | 0.43 | 0.17 | |||||
Adjusted net earnings per sharef | 0.23 | 0.16 | 0.09 | 0.39 | 0.19 |
- Net impairment charges for the three month period ended
June 30, 2020 relate to miscellaneous assets. For the three month period endedMarch 31, 2020 and the six month period endedJune 30, 2020 , net impairment reversals primarily relate to non-current asset reversals at our Tanzanian assets. - Acquisition/disposition gains for the three month period ended
March 31, 2020 and the six month period endedJune 30, 2020 primarily relate to the gain on the sale of Massawa. - Significant tax adjustments for the three month period ended
March 31, 2020 and the six month period endedJune 30, 2020 primarily relate to deferred tax recoveries as a result of tax reform measures inArgentina and adjustments made in recognition of the net settlement of all outstanding disputes with the GoT. For the three and six month periods endedJune 30, 2019 , significant tax adjustments primarily relate to an adjustment to deferred taxes at Veladero. Refer to Note 10 to the Financial Statements for more information. - Other expense adjustments for the three and six month period ended
June 30, 2020 primarily relate to care and maintenance expenses at Porgera and Covid-19 donations. The six month period endedJune 30, 2020 was further impacted by changes in the discount rate assumptions on our closed mine rehabilitation provision. For the three month period endedMarch 31, 2020 , other expense adjustments primarily relate to the impact of changes in the discount rate assumptions on our closed mine rehabilitation provision and losses on debt extinguishment. Other expense adjustments for the three and six month periods endedJune 30, 2019 primarily relate to severance costs as a result of the implementation of a number of organizational reductions, the impact of changes in the discount rate assumptions on our closed mine rehabilitation provision and transaction costs related to Nevada Gold Mines. - Tax effect and non-controlling interest for the three month periods ended
March 31, 2020 andDecember 31, 2019 primarily relates to the net impairment reversals related to long-lived assets. - Calculated using weighted average number of shares outstanding under the basic method of earnings per share.
Endnote 3
"Realized price" is a non-GAAP financial measure which excludes from sales: unrealized gains and losses on non-hedge derivative contracts; unrealized mark-to-market gains and losses on provisional pricing from copper and gold sales contracts; sales attributable to ore purchase arrangements; treatment and refining charges; 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 | |||||||||||||||||||
Sales | 2,812 | 2,593 | 1,937 | 184 | 99 | 103 | 5,405 | 3,843 | 283 | 266 | ||||||||||
Sales applicable to non-controlling interests | (822) | (770) | (240) | 0 | 0 | 0 | (1,592) | (464) | 0 | 0 | ||||||||||
Sales applicable to equity method investmentsa,b | 172 | 147 | 135 | 120 | 107 | 124 | 319 | 264 | 227 | 245 | ||||||||||
Realized non-hedge gold/copper derivative (losses) gains | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | ||||||||||
Sales applicable to sites in care and maintenancec | (53) | (46) | (26) | 0 | 0 | 0 | (99) | (52) | 0 | 0 | ||||||||||
Treatment and refinement charges | 2 | 0 | 0 | 40 | 39 | 25 | 2 | 0 | 79 | 56 | ||||||||||
Otherd | 0 | 15 | 0 | 0 | 0 | 0 | 15 | 0 | 0 | 0 | ||||||||||
Revenues – as adjusted | 2,111 | 1,939 | 1,807 | 344 | 245 | 252 | 4,050 | 3,592 | 589 | 567 | ||||||||||
Ounces/pounds sold (000s ounces/millions pounds)c | 1,224 | 1,220 | 1,372 | 123 | 110 | 96 | 2,444 | 2,737 | 233 | 199 | ||||||||||
Realized gold/copper price per ounce/pounde | 1,725 | 1,589 | 1,317 | 2.79 | 2.23 | 2.62 | 1,657 | 1,312 | 2.53 | 2.85 |
- Represents sales of
$164 million and$304 million , respectively, for the three and six month periods endedJune 30, 2020 (March 31, 2020 :$140 million andJune 30, 2019 :$125 million and$242 million , respectively) applicable to our 45% equity method investment in Kibali and $nil and nil, respectively, (March 31, 2020 : $nil andJune 30, 2019 :$10 million and$22 million , respectively) applicable to our 40% equity method investment in Morila for gold. Represents sales of$78 million and$150 million , respectively, for the three and six months endedJune 30, 2020 (March 31, 2020 :$72 million andJune 30, 2019 :$86 million and$167 million , respectively) applicable to our 50% equity method investment in Zaldívar and$46 million and$86 million , respectively (March 31, 2020 :$40 million andJune 30, 2019 :$44 million and$88 million , respectively) applicable to our 50% equity method investment inJabal Sayid for copper. - Sales applicable to equity method investments are net of treatment and refinement charges.
- Figures exclude: Pierina; Golden Sunlight and Morila starting in the third quarter of 2019; and Lagunas Norte starting in the fourth quarter of 2019, from the calculation of realized price per ounce as the mine is mining incidental ounces as it enters closure.
- Represents cumulative catch-up adjustment to revenue relating to our streaming arrangements. Refer to note 2f of the 2019 Annual Financial Statements for more information.
- Realized price per ounce/pound may not calculate based on amounts presented in this table due to rounding.
Endnote 4
Includes North Mara, Bulyanhulu and Buzwagi on a 84% basis starting
Endnote 5
Net earnings (loss) represents net earnings (loss) attributable to the equity holders of the Company.
Endnote 6
These amounts are presented on the same basis as our guidance and include our 60% share of Pueblo Viejo, 80% share of Loulo-Gounkoto, 89.7% share of Tongon, 45% share of Kibali, 40% share of Morila and 60% share of South Arturo (36.9% of South Arturo from
Endnote 7
Gold cost of sales (Barrick’s share) is calculated as cost of sales - gold on an attributable basis (excluding sites in care and maintenance) divided by ounces sold.
Endnote 8
“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 but removes depreciation, the noncontrolling interest of cost of sales, and includes by product credits. “All-in sustaining costs” per ounce begin with “Total cash costs” per ounce and add further costs which reflect the 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 nonsustaining 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
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 | |||||||||||
Cost of sales applicable to gold production | 1,740 | 1,643 | 1,437 | 3,383 | 2,787 | ||||||
Depreciation | (498) | (474) | (431) | (972) | (815) | ||||||
Cash cost of sales applicable to equity method investments | 62 | 52 | 62 | 114 | 124 | ||||||
By-product credits | (59) | (29) | (23) | (88) | (47) | ||||||
Realized (gains) losses on hedge and non-hedge derivatives | a | 1 | 0 | (1) | 1 | (1) | |||||
Non-recurring items | b | 0 | 0 | (9) | 0 | (29) | |||||
Other | c | (26) | (27) | (26) | (53) | (46) | |||||
Non-controlling interests | d | (336) | (316) | (112) | (652) | (213) | |||||
Total cash costs | 884 | 849 | 897 | 1,733 | 1,760 | ||||||
General & administrative costs | 71 | 40 | 59 | 111 | 113 | ||||||
Minesite exploration and evaluation costs | e | 23 | 15 | 12 | 38 | 23 | |||||
Minesite sustaining capital expenditures | f | 420 | 370 | 267 | 790 | 520 | |||||
Sustaining leases | 10 | 0 | 8 | 10 | 18 | ||||||
Rehabilitation - accretion and amortization (operating sites) | g | 12 | 14 | 16 | 26 | 30 | |||||
Non-controlling interest, copper operations and other | h | (158) | (125) | (76) | (283) | (151) | |||||
All-in sustaining costs | 1,262 | 1,163 | 1,183 | 2,425 | 2,313 | ||||||
Project exploration and evaluation and project costs | e | 55 | 56 | 86 | 111 | 149 | |||||
Community relations costs not related to current operations | 0 | 1 | 0 | 1 | 1 | ||||||
Project capital expenditures | f | 85 | 76 | 108 | 161 | 228 | |||||
Rehabilitation - accretion and amortization (non-operating sites) | g | 4 | 2 | 7 | 6 | 14 | |||||
Non-controlling interest and copper operations and other | h | (36) | (17) | (28) | (53) | (31) | |||||
All-in costs | 1,370 | 1,281 | 1,356 | 2,651 | 2,674 | ||||||
Ounces sold - equity basis (000s ounces) | i | 1,224 | 1,220 | 1,372 | 2,444 | 2,737 | |||||
Cost of sales per ounce | j,k | 1,075 | 1,020 | 964 | 1,048 | 956 | |||||
Total cash costs per ounce | k | 716 | 692 | 651 | 704 | 641 | |||||
Total cash costs per ounce (on a co-product basis) | k,l | 747 | 705 | 663 | 726 | 654 | |||||
All-in sustaining costs per ounce | k | 1,031 | 954 | 869 | 993 | 842 | |||||
All-in sustaining costs per ounce (on a co-product basis) | k,l | 1,062 | 967 | 881 | 1,015 | 855 | |||||
All-in costs per ounce | k | 1,118 | 1,052 | 999 | 1,085 | 976 | |||||
All-in costs per ounce (on a co-product basis) | k,l | 1,149 | 1,065 | 1,011 | 1,107 | 989 |
a. Realized (gains) losses on hedge and non-hedge derivatives
Includes realized hedge losses of $nil and $nil, respectively, for the three and six month periods ended
b. Non-recurring items
Non-recurring items in 2019 relate to organizational restructuring. These costs are not indicative of our cost of production and have been excluded from the calculation of total cash costs.
c. Other
Other adjustments for the three and six month period ended
d. Non-controlling interests
Non-controlling interests include non-controlling interests related to gold production of
e. Exploration and evaluation costs
Exploration, evaluation and project expenses are presented as minesite sustaining if it supports current mine operations and project if it relates to future projects. Refer to page 72 of the second quarter MD&A.
f. Capital expenditures
Capital expenditures are related to our gold sites only and are split between minesite sustaining and project capital expenditures. Project capital expenditures are distinct projects designed to increase the net present value of the mine and are not related to current production. Significant projects in the current year are the expansion project at Pueblo Viejo, the Goldrush exploration declines, the restart of mining activities at Bulyanhulu, and construction of the third shaft at
g. Rehabilitation—accretion and amortization
Includes depreciation on the assets related to rehabilitation provisions of our gold operations and accretion on the rehabilitation provision of our gold operations, split between operating and non-operating sites.
h. Non-controlling interest and copper operations
Removes general & administrative costs related to non-controlling interests and copper based on a percentage allocation of revenue. Also removes exploration, evaluation and project expenses, rehabilitation costs and capital expenditures incurred by our copper sites and the non-controlling interest of North Mara, Bulyanhulu and Buzwagi (notwithstanding the completion of the Acacia transaction on
($ millions) | For the three months ended | For the six months ended | ||||||||
Non-controlling interest, copper operations and other | ||||||||||
General & administrative costs | (8) | (6) | (23) | (14) | (33) | |||||
Minesite exploration and evaluation expenses | (8) | (3) | 0 | (11) | (1) | |||||
Rehabilitation - accretion and amortization (operating sites) | (4) | (4) | (1) | (8) | (2) | |||||
Minesite sustaining capital expenditures | (138) | (112) | (52) | (250) | (115) | |||||
All-in sustaining costs total | (158) | (125) | (76) | (283) | (151) | |||||
Project exploration and evaluation and project costs | (9) | (3) | (26) | (12) | (28) | |||||
Project capital expenditures | (27) | (14) | (2) | (41) | (3) | |||||
All-in costs total | (36) | (17) | (28) | (53) | (31) |
i. Ounces sold - equity basis
Figures remove the impact of: Pierina; Golden Sunlight and Morila starting in the third quarter of 2019; and Lagunas Norte starting in the fourth quarter of 2019, which are producing incidental ounces as they reach the end of their mine lives.
j. Cost of sales per ounce
Figures remove the cost of sales impact of: Pierina of
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 | ||||||||
By-product credits | 59 | 29 | 23 | 88 | 47 | |||||
Non-controlling interest | (22) | (15) | (7) | (37) | (15) | |||||
By-product credits (net of non-controlling interest) | 37 | 14 | 16 | 51 | 32 |
Endnote 9
Amounts reflect production and sales from
Endnote 10
Copper cost of sales (Barrick’s share) is calculated as cost of sales - copper plus our equity share of cost of sales attributable to Zaldívar and
Endnote 11
“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 | ||||||||
Cost of sales | 153 | 124 | 101 | 277 | 232 | |||||
Depreciation/amortization | (63) | (43) | (28) | (106) | (70) | |||||
Treatment and refinement charges | 40 | 39 | 25 | 79 | 56 | |||||
Cash cost of sales applicable to equity method investments | 72 | 66 | 69 | 138 | 135 | |||||
Less: royalties and production taxesa | (11) | (11) | (9) | (22) | (21) | |||||
By-product credits | (3) | (3) | (2) | (6) | (5) | |||||
Other | 0 | 0 | (5) | 0 | (5) | |||||
C1 cash costs | 188 | 172 | 151 | 360 | 322 | |||||
General & administrative costs | 6 | 3 | 6 | 9 | 11 | |||||
Rehabilitation - accretion and amortization | 2 | 3 | 3 | 5 | 6 | |||||
Royalties and production taxesa | 11 | 11 | 9 | 22 | 21 | |||||
Minesite exploration and evaluation costs | 1 | 1 | 1 | 2 | 3 | |||||
Minesite sustaining capital expenditures | 52 | 32 | 48 | 84 | 107 | |||||
Sustaining leases | 2 | 3 | 1 | 5 | 2 | |||||
All-in sustaining costs | 262 | 225 | 219 | 487 | 472 | |||||
Pounds sold - consolidated basis (millions pounds) | 123 | 110 | 96 | 233 | 199 | |||||
Cost of sales per poundb,c | 2.08 | 1.96 | 2.04 | 2.03 | 2.13 | |||||
C1 cash cost per poundb | 1.55 | 1.55 | 1.59 | 1.55 | 1.62 | |||||
All-in sustaining costs per poundb | 2.15 | 2.04 | 2.28 | 2.10 | 2.37 |
- For the three and six month period ended
June 30, 2020 , royalties and production taxes include royalties of$11 million and$22 million respectively (March 31, 2020 :$11 million andJune 30, 2019 :$9 million and$21 million respectively). - Cost of sales per pound, C1 cash costs per pound and all-in sustaining costs per pound may not calculate based on amounts presented in this table due to rounding.
- Cost of sales applicable to copper per pound is calculated using cost of sales including our proportionate share of cost of sales attributable to equity method investments (Zaldívar and
Jabal Sayid ), divided by consolidated copper pounds (including our proportionate share of copper pounds from our equity method investments).
Endnote 12
Barrick defines a Tier One mine as one that produces in excess of 500,000 ounces of gold per annum and has a life of at least 10 years.
Endnote 13
On a 100% basis and pending completion of updated feasibility studies at Bulyanhulu.
Endnote 14
The 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 15
Cost of sales applicable to gold per ounce is calculated using cost of sales applicable to gold on an attributable basis (removing the non-controlling interest of 40% Pueblo Viejo; 20% Loulo-Gounkoto; 10.3% Tongon; 16% North Mara, Bulyanhulu and Buzwagi starting
Endnote 16
Includes our 36.9% share of South Arturo.
Endnote 17
Based on the communication we received from the Government of
Endnote 18
Amounts are on an 84% basis as the GoT's 16% free-carried interest was made effective from
Endnote 19
Total cash costs and all-in sustaining costs per ounce include the impact of hedges and/or costs allocated to non-operating sites.
Endnote 20
Operating unit guidance ranges reflect expectations at each individual operating unit, and may not add up to the company-wide guidance range total. Guidance ranges exclude Pierina, Lagunas Norte, Golden Sunlight and Morila (40%).
Endnote 21
Includes corporate administration costs.
Endnote 22
2020 Guidance includes 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 Zaldívar and
Endnote 23
Reflects the impact of the full year.
Endnote 24
EBITDA 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; unrealized gains on non-hedge derivative instruments; 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 | ||||||||
Net earnings (loss) | 622 | 663 | 223 | 1,285 | 363 | |||||
Income tax expense | 258 | 386 | 41 | 644 | 208 | |||||
Finance costs, neta | 74 | 88 | 98 | 162 | 198 | |||||
Depreciation | 566 | 524 | 466 | 1,090 | 901 | |||||
EBITDA | 1,520 | 1,661 | 828 | 3,181 | 1,670 | |||||
Impairment charges (reversals) of long-lived assetsb | 23 | (336) | 12 | (313) | 15 | |||||
Acquisition/disposition (gains) lossesc | 8 | (60) | (12) | (52) | (12) | |||||
Loss (gain) on currency translation | 2 | 16 | (6) | 18 | 16 | |||||
Other expense (income) adjustmentsd | 48 | 98 | 58 | 146 | 104 | |||||
Income tax expense, net finance costs, and depreciation from equity investees | 96 | 87 | 92 | 183 | 181 | |||||
Adjusted EBITDA | 1,697 | 1,466 | 972 | 3,163 | 1,974 |
- Finance costs exclude accretion.
- Net impairment charges for the three month period ended
June 30, 2020 relate to miscellaneous assets. For the three month period endedMarch 31, 2020 and the six month period endedJune 30, 2020 , net impairment reversals primarily relate to non-current asset reversals at our Tanzanian assets. - Acquisition/disposition gains for the three month period ended
March 31, 2020 and the six month period endedJune 30, 2020 primarily relate to the gain on the sale of Massawa. - Other expense adjustments for the three and six month period ended
June 30, 2020 primarily relate to care and maintenance expenses at Porgera and Covid-19 donations. The six month period endedJune 30, 2020 was further impacted by changes in the discount rate assumptions on our closed mine rehabilitation provision. For the three month period endedMarch 31, 2020 , other expense adjustments primarily relate to the impact of changes in the discount rate assumptions on our closed mine rehabilitation provision and losses on debt extinguishment. Other expense adjustments for the three and six month periods endedJune 30, 2019 primarily relate to severance costs as a result of the implementation of a number of organizational reductions, the impact of changes in the discount rate assumptions on our closed mine rehabilitation provision and transaction costs related to Nevada Gold Mines.
Endnote 25
Due to our hedging activities, which are reflected in these sensitivities, we are partially protected against changes in these factors.
Financial and Operating Highlights
For the three months ended | For the six months ended | ||||||||||||||||||
% Change | % Change | % Change | |||||||||||||||||
Financial Results ($ millions) | |||||||||||||||||||
Revenues | 3,055 | 2,721 | 12 | % | 2,063 | 48 | % | 5,776 | 4,156 | 39 | % | ||||||||
Cost of sales | 1,900 | 1,776 | 7 | % | 1,545 | 23 | % | 3,676 | 3,035 | 21 | % | ||||||||
Net earningsa | 357 | 400 | (11 | ) | % | 194 | 84 | % | 757 | 305 | 148 | % | |||||||
Adjusted net earningsb | 415 | 285 | 46 | % | 154 | 169 | % | 700 | 338 | 107 | % | ||||||||
Adjusted EBITDAb | 1,697 | 1,466 | 16 | % | 972 | 75 | % | 3,163 | 1,974 | 60 | % | ||||||||
Adjusted EBITDA marginb,c | 56 | % | 54 | % | 4 | % | 47 | % | 19 | % | 55 | % | 47 | % | 17 | % | |||
Minesite sustaining capital expendituresd | 420 | 370 | 14 | % | 267 | 57 | % | 790 | 520 | 52 | % | ||||||||
Project capital expendituresd | 85 | 76 | 12 | 108 | (21 | ) | 161 | 228 | (29 | ) | % | ||||||||
Total consolidated capital expendituresd,e | 509 | 451 | 13 | 379 | 34 | 960 | 753 | 27 | % | ||||||||||
Net cash provided by operating activities | 1,031 | 889 | 16 | % | 434 | 138 | % | 1,920 | 954 | 101 | % | ||||||||
Net cash provided by operating activities marginf | 34 | % | 33 | % | 3 | % | 21 | % | 62 | % | 33 | % | 23 | % | 43 | % | |||
Free cash flowb | 522 | 438 | 19 | % | 55 | 849 | % | 960 | 201 | 378 | % | ||||||||
Net earnings per share (basic and diluted) | 0.20 | 0.22 | (9 | ) | % | 0.11 | 82 | % | 0.43 | 0.17 | 153 | % | |||||||
Adjusted net earnings (basic)b per share | 0.23 | 0.16 | 44 | % | 0.09 | 156 | % | 0.39 | 0.19 | 105 | % | ||||||||
Weighted average diluted common shares (millions of shares) | 1,778 | 1,778 | 0 | % | 1,752 | 1 | % | 1,778 | 1,749 | 2 | % | ||||||||
Operating Results | |||||||||||||||||||
Gold production (thousands of ounces)g | 1,149 | 1,250 | (8 | ) | % | 1,353 | (15 | ) | % | 2,399 | 2,720 | (12 | ) | % | |||||
Gold sold (thousands of ounces)g | 1,224 | 1,220 | 0 | % | 1,372 | (11 | ) | % | 2,444 | 2,737 | (11 | ) | % | ||||||
Market gold price ($/oz) | 1,711 | 1,583 | 8 | % | 1,309 | 31 | % | 1,645 | 1,307 | 26 | % | ||||||||
Realized gold priceb,g ($/oz) | 1,725 | 1,589 | 9 | % | 1,317 | 31 | % | 1,657 | 1,312 | 26 | % | ||||||||
Gold cost of sales (Barrick’s share)g,h ($/oz) | 1,075 | 1,020 | 5 | % | 964 | 12 | % | 1,048 | 956 | 10 | % | ||||||||
Gold total cash costsb,g ($/oz) | 716 | 692 | 3 | % | 651 | 10 | % | 704 | 641 | 10 | % | ||||||||
Gold all-in sustaining costsb,g ($/oz) | 1,031 | 954 | 8 | % | 869 | 19 | % | 993 | 842 | 18 | % | ||||||||
Copper production (millions of pounds)i | 120 | 115 | 4 | % | 97 | 24 | % | 235 | 203 | 16 | % | ||||||||
Copper sold (millions of pounds)i | 123 | 110 | 12 | % | 96 | 28 | % | 233 | 199 | 17 | % | ||||||||
Market copper price ($/lb) | 2.43 | 2.56 | (5 | ) | % | 2.77 | (12 | ) | % | 2.49 | 2.80 | (11 | ) | % | |||||
Realized copper priceb,i ($/lb) | 2.79 | 2.23 | 25 | % | 2.62 | 6 | % | 2.53 | 2.85 | (11 | ) | % | |||||||
Copper cost of sales (Barrick’s share)i,j ($/lb) | 2.08 | 1.96 | 6 | % | 2.04 | 2 | % | 2.03 | 2.13 | (5 | ) | % | |||||||
Copper C1 cash costsb,i ($/lb) | 1.55 | 1.55 | 0 | % | 1.59 | (3 | ) | % | 1.55 | 1.62 | (4 | ) | % | ||||||
Copper all-in sustaining costsb,i ($/lb) | 2.15 | 2.04 | 5 | % | 2.28 | (6 | ) | % | 2.10 | 2.37 | (11 | ) | % | ||||||
As at | As at | % Change | As at | % Change | |||||||||||||||
Financial Position ($ millions) | |||||||||||||||||||
Debt (current and long-term) | 5,168 | 5,179 | 0 | % | 5,807 | (11 | ) | % | |||||||||||
Cash and equivalents | 3,743 | 3,327 | 13 | % | 2,153 | 74 | % | ||||||||||||
Debt, net of cash | 1,425 | 1,852 | (23 | ) | % | 3,654 | (61 | ) | % |
a. Net earnings represents net earnings attributable to the equity holders of the Company.
b. Adjusted net earnings, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net earnings per share, realized gold price, all-in sustaining costs, total cash costs, C1 cash costs and realized copper price are non-GAAP financial performance measures with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information and a detailed reconciliation of each non-GAAP measure to the most directly comparable IFRS measure, please see pages 79 to 103 of our second quarter MD&A.
c. Represents adjusted EBITDA divided by revenue.
d. 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.
e. Total consolidated capital expenditures also includes capitalized interest.
f. Represents net cash provided by operating activities divided by revenue.
g. Includes North Mara, Bulyanhulu and Buzwagi on a 84% basis starting
h. Gold cost of sales (Barrick’s share) is calculated as gold cost of sales on an attributable basis (excluding sites in care and maintenance) divided by ounces sold.
i. Amounts reflect production and sales from
j. Copper cost of sales (Barrick’s share) is calculated as copper cost of sales plus our equity share of cost of sales attributable to Zaldívar and
Consolidated Statements of Income
(in millions of | Three months ended | Six months ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue (notes 5 and 6) | $ | 3,055 | $ | 2,063 | $ | 5,776 | $ | 4,156 | ||||||||
Costs and expenses (income) | ||||||||||||||||
Cost of sales (notes 5 and 7) | 1,900 | 1,545 | 3,676 | 3,035 | ||||||||||||
General and administrative expenses | 71 | 59 | 111 | 113 | ||||||||||||
Exploration, evaluation and project expenses | 78 | 98 | 149 | 172 | ||||||||||||
Impairment (reversals) charges (notes 9B and 13) | 23 | 12 | (313 | ) | 15 | |||||||||||
Loss (gain) on currency translation | 2 | (6 | ) | 18 | 16 | |||||||||||
Closed mine rehabilitation | 7 | 16 | 97 | 41 | ||||||||||||
Income from equity investees (note 12) | (61 | ) | (50 | ) | (115 | ) | (78 | ) | ||||||||
Other expense (note 9A) | 73 | 7 | 38 | 33 | ||||||||||||
Income before finance costs and income taxes | $ | 962 | $ | 382 | $ | 2,115 | $ | 809 | ||||||||
Finance costs, net | (82 | ) | (118 | ) | (186 | ) | (238 | ) | ||||||||
Income before income taxes | $ | 880 | $ | 264 | $ | 1,929 | $ | 571 | ||||||||
Income tax expense (note 10) | (258 | ) | (41 | ) | (644 | ) | (208 | ) | ||||||||
Net income | $ | 622 | $ | 223 | $ | 1,285 | $ | 363 | ||||||||
Attributable to: | ||||||||||||||||
Equity holders of | $ | 357 | $ | 194 | $ | 757 | $ | 305 | ||||||||
Non-controlling interests | $ | 265 | $ | 29 | $ | 528 | $ | 58 | ||||||||
Earnings per share data attributable to the equity holders of | ||||||||||||||||
Net income | ||||||||||||||||
Basic | $ | 0.20 | $ | 0.11 | $ | 0.43 | $ | 0.17 | ||||||||
Diluted | $ | 0.20 | $ | 0.11 | $ | 0.43 | $ | 0.17 |
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2020 available on our website are an integral part of these consolidated financial statements.
Consolidated Statements of Comprehensive Income
(in millions of | Three months ended | Six months ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income | $ | 622 | $ | 223 | $ | 1,285 | $ | 363 | ||||||||
Other comprehensive (loss) income, net of taxes | ||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||
Unrealized gains (losses) on derivatives designated as cash flow hedges, net of tax $nil, $nil, $nil and $nil | (2 | ) | — | (1 | ) | — | ||||||||||
Currency translation adjustments, net of tax $nil, $nil, $nil and $nil | (1 | ) | (1 | ) | (5 | ) | (3 | ) | ||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||
Actuarial gain (loss) on post employment benefit obligations, net of tax ( | (5 | ) | — | (2 | ) | — | ||||||||||
Net change on equity investments, net of tax $nil, $nil, $nil and $nil | 118 | 11 | 93 | 7 | ||||||||||||
Total other comprehensive income | 110 | 10 | 85 | 4 | ||||||||||||
Total comprehensive income | $ | 732 | $ | 233 | $ | 1,370 | $ | 367 | ||||||||
Attributable to: | ||||||||||||||||
Equity holders of | $ | 467 | $ | 204 | $ | 842 | $ | 309 | ||||||||
Non-controlling interests | $ | 265 | $ | 29 | $ | 528 | $ | 58 |
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2020 available on our website are an integral part of these consolidated financial statements.
Consolidated Statements of Cash Flow
Barrick Gold Corporation (in millions of | Three months ended | Six months ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Net income | $ | 622 | $ | 223 | $ | 1,285 | $ | 363 | ||||||||
Adjustments for the following items: | ||||||||||||||||
Depreciation | 566 | 466 | 1,090 | 901 | ||||||||||||
Finance costs, net | 86 | 125 | 197 | 252 | ||||||||||||
Impairment (reversals) charges (notes 9B and 13) | 23 | 12 | (313 | ) | 15 | |||||||||||
Income tax expense (note 10) | 258 | 41 | 644 | 208 | ||||||||||||
Loss (gain) on sale of non-current assets | 8 | (12 | ) | (52 | ) | (12 | ) | |||||||||
Loss (gain) on currency translation | 2 | (6 | ) | 18 | 16 | |||||||||||
Change in working capital (note 11) | (9 | ) | (82 | ) | (341 | ) | (330 | ) | ||||||||
Other operating activities (note 11) | (35 | ) | 38 | 18 | 14 | |||||||||||
Operating cash flows before interest and income taxes | 1,521 | 805 | 2,546 | 1,427 | ||||||||||||
Interest paid | (130 | ) | (137 | ) | (154 | ) | (165 | ) | ||||||||
Income taxes paid | (360 | ) | (234 | ) | (472 | ) | (308 | ) | ||||||||
Net cash provided by operating activities | 1,031 | 434 | 1,920 | 954 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Property, plant and equipment | ||||||||||||||||
Capital expenditures (note 5) | (509 | ) | (379 | ) | (960 | ) | (753 | ) | ||||||||
Sales proceeds | 9 | 15 | 16 | 18 | ||||||||||||
Investment sales (purchases) | 206 | (4 | ) | 206 | (7 | ) | ||||||||||
Divestitures (note 4) | — | — | 256 | — | ||||||||||||
Cash acquired in merger | — | — | — | 751 | ||||||||||||
Other investing activities (note 11) | 30 | 17 | 55 | 62 | ||||||||||||
Net cash provided by (used in) investing activities | (264 | ) | (351 | ) | (427 | ) | 71 | |||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Lease repayments | (7 | ) | (6 | ) | (12 | ) | (18 | ) | ||||||||
Debt repayments | — | — | (351 | ) | (16 | ) | ||||||||||
Dividends | (124 | ) | (61 | ) | (246 | ) | (394 | ) | ||||||||
Funding from non-controlling interests | — | 8 | 1 | 14 | ||||||||||||
Disbursements to non-controlling interests | (217 | ) | (23 | ) | (434 | ) | (28 | ) | ||||||||
Other financing activities | — | — | (15 | ) | — | |||||||||||
Net cash used in financing activities | (348 | ) | (82 | ) | (1,057 | ) | (442 | ) | ||||||||
Effect of exchange rate changes on cash and equivalents | (3 | ) | (1 | ) | (7 | ) | (1 | ) | ||||||||
Net increase in cash and equivalents | 416 | — | 429 | 582 | ||||||||||||
Cash and equivalents at the beginning of period | 3,327 | 2,153 | 3,314 | 1,571 | ||||||||||||
Cash and equivalents at the end of period | $ | 3,743 | $ | 2,153 | $ | 3,743 | $ | 2,153 |
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2020 available on our website are an integral part of these consolidated financial statements.
Consolidated Balance Sheets
Barrick Gold Corporation (in millions of | As at | As at | ||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and equivalents (note 14A) | $ | 3,743 | $ | 3,314 | ||||
Accounts receivable | 407 | 363 | ||||||
Inventories | 2,160 | 2,289 | ||||||
Other current assets | 609 | 565 | ||||||
Total current assets (excluding assets classified as held for sale) | $ | 6,919 | $ | 6,531 | ||||
Assets classified as held for sale (note 4A) | — | 356 | ||||||
Total current assets | $ | 6,919 | $ | 6,887 | ||||
Non-current assets | ||||||||
Equity in investees (note 12) | 4,587 | 4,527 | ||||||
Property, plant and equipment | 24,727 | 24,141 | ||||||
| 4,769 | 4,769 | ||||||
Intangible assets | 214 | 226 | ||||||
Deferred income tax assets | 143 | 235 | ||||||
Non-current portion of inventory | 2,460 | 2,300 | ||||||
Other assets | 1,361 | 1,307 | ||||||
Total assets | $ | 45,180 | $ | 44,392 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 1,072 | $ | 1,155 | ||||
Debt (note 14B) | 26 | 375 | ||||||
Current income tax liabilities | 122 | 224 | ||||||
Other current liabilities | 591 | 622 | ||||||
Total current liabilities | $ | 1,811 | $ | 2,376 | ||||
Non-current liabilities | ||||||||
Debt (note 14B) | 5,142 | 5,161 | ||||||
Provisions | 3,291 | 3,114 | ||||||
Deferred income tax liabilities | 3,106 | 3,091 | ||||||
Other liabilities | 1,084 | 823 | ||||||
Total liabilities | $ | 14,434 | $ | 14,565 | ||||
Equity | ||||||||
Capital stock (note 16) | $ | 29,234 | $ | 29,231 | ||||
Deficit | (9,214 | ) | (9,722 | ) | ||||
Accumulated other comprehensive loss | (37 | ) | (122 | ) | ||||
Other | 2,049 | 2,045 | ||||||
Total equity attributable to | $ | 22,032 | $ | 21,432 | ||||
Non-controlling interests | 8,714 | 8,395 | ||||||
Total equity | $ | 30,746 | $ | 29,827 | ||||
Contingencies and commitments (notes 5 and 17) | ||||||||
Total liabilities and equity | $ | 45,180 | $ | 44,392 |
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2020 available on our website are an integral part of these consolidated financial statements.
Consolidated Statements of Changes in Equity
Attributable to equity holders of the company | ||||||||||||||||||||||||||||
(in millions of | Common Shares (in thousands) | Capital stock | Retained earnings (deficit) | Accumulated other comprehensive income (loss)1 | Other2 | Total equity attributable to shareholders | Non-controlling interests | Total equity | ||||||||||||||||||||
At | 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 (loss) | — | — | — | 85 | — | 85 | — | 85 | ||||||||||||||||||||
Total comprehensive income | — | — | 757 | 85 | — | 842 | 528 | 1,370 | ||||||||||||||||||||
Transactions with owners | ||||||||||||||||||||||||||||
Dividends | — | — | (246 | ) | — | — | (246 | ) | — | (246 | ) | |||||||||||||||||
Issuance of 16% interest in | — | — | — | — | — | — | 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 (note 16) | 101 | 3 | (3 | ) | — | — | — | — | — | |||||||||||||||||||
Share-based payments | — | — | — | — | 4 | 4 | — | 4 | ||||||||||||||||||||
Total transactions with owners | 141 | 3 | (249 | ) | — | 4 | (242 | ) | (209 | ) | (451 | ) | ||||||||||||||||
At | 1,778,068 | $ | 29,234 | ($ | 9,214 | ) | ($ | 37 | ) | $ | 2,049 | $ | 22,032 | $ | 8,714 | $ | 30,746 | |||||||||||
At | 1,167,847 | $ | 20,883 | ($ | 13,453 | ) | ($ | 158 | ) | $ | 321 | $ | 7,593 | $ | 1,792 | $ | 9,385 | |||||||||||
Net income | — | — | 305 | — | — | 305 | 58 | 363 | ||||||||||||||||||||
Total other comprehensive income | — | — | — | 4 | — | 4 | — | 4 | ||||||||||||||||||||
Total comprehensive income | — | — | 305 | 4 | — | 309 | 58 | 367 | ||||||||||||||||||||
Transactions with owners | ||||||||||||||||||||||||||||
Dividends | — | — | (64 | ) | — | — | (64 | ) | — | (64 | ) | |||||||||||||||||
Merger with | 583,669 | 7,903 | — | — | — | 7,903 | 885 | 8,788 | ||||||||||||||||||||
Issued on exercise of stock options | 25 | — | — | — | — | — | — | — | ||||||||||||||||||||
Funding from non-controlling interests | — | — | — | — | — | — | 14 | 14 | ||||||||||||||||||||
Disbursements to non-controlling interests | — | — | — | — | — | — | (28 | ) | (28 | ) | ||||||||||||||||||
Dividend reinvestment plan (note 16) | 1,128 | 15 | (15 | ) | — | — | — | — | — | |||||||||||||||||||
Share-based payments | — | — | — | — | 5 | 5 | — | 5 | ||||||||||||||||||||
Total transactions with owners | 584,822 | 7,918 | (79 | ) | — | 5 | 7,844 | 871 | 8,715 | |||||||||||||||||||
At | 1,752,669 | $ | 28,801 | ($ | 13,227 | ) | ($ | 154 | ) | $ | 326 | $ | 15,746 | $ | 2,721 | $ | 18,467 |
1 Includes cumulative translation losses at
2 Includes additional paid-in capital as at
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2020 available on our website are an integral part of these consolidated financial statements.
Corporate Office
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Email: investor@barrick.com
Website: www.barrick.com
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or
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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 “deliver”, "plan", "objective", "expected", “potential”, “strategy”, “will”, "continues", “ongoing” 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 and estimates of future costs; Barrick’s non-core asset disposal strategy; potential extensions to life of mine, including at
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper or certain other commodities (such as silver, diesel fuel, natural gas and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation and exploration successes; risks associated with projects in the early stages of evaluation and for which additional engineering and other analysis is required; the benefits expected from recent transactions being realized; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required infrastructure and information technology systems; failure to comply with environmental and health and safety laws and regulations; non-renewal of key licenses by governmental authorities, including non-renewal of Porgera’s Special
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
Source:
2020 GlobeNewswire, Inc., source