All amounts expressed in US dollars
The average market price for gold in the third quarter was
Preliminary third quarter gold production was slightly higher than the second quarter of 2020, notwithstanding the fact that there was no third quarter production at Porgera in
Preliminary third quarter copper production and sales were both lower than the previous quarter, primarily as a result of lower throughput at Lumwana following plant maintenance completed in the quarter. Third quarter copper cost of sales per pound2 is expected to be 4-6% lower and C1 cash costs per pound3 are expected to be 5-7% lower than the prior quarter. Copper all-in sustaining costs per pound3 are expected to be 6-8% higher than the second quarter of 2020 as a result of higher capitalized stripping at Lumwana.
Barrick will provide additional discussion and analysis regarding its third quarter production and sales when the company reports its quarterly results before North American markets open on
The following table includes preliminary gold and copper production and sales results from Barrick's operations:
Three months ended | Nine months ended | |||
Production | Sales | Production | Sales | |
Gold (equity ounces (000)) | ||||
Carlin4 (61.5%) | 276 | 275 | 764 | 765 |
Cortez (61.5%) | 113 | 115 | 373 | 375 |
76 | 76 | 239 | 242 | |
30 | 31 | 100 | 100 | |
43 | 45 | 109 | 110 | |
538 | 542 | 1,585 | 1,592 | |
Loulo-Gounkoto (80%) | 139 | 136 | 421 | 416 |
Pueblo Viejo (60%) | 129 | 129 | 383 | 388 |
Kibali (45%) | 91 | 91 | 272 | 275 |
North Mara (84%) | 67 | 69 | 200 | 206 |
Tongon (89.7%) | 64 | 65 | 189 | 191 |
55 | 55 | 166 | 167 | |
Veladero (50%) | 44 | 43 | 168 | 135 |
Buzwagi (84%) | 21 | 73 | 63 | 153 |
Bulyanhulu (84%) | 7 | 46 | 21 | 83 |
Porgera (47.5%) | 0 | 0 | 86 | 87 |
Total Gold | 1,155 | 1,249 | 3,554 | 3,693 |
Copper (equity pounds (millions)) | ||||
Lumwana | 62 | 74 | 198 | 212 |
Zaldívar (50%) | 24 | 21 | 83 | 81 |
17 | 21 | 57 | 56 | |
Total Copper | 103 | 116 | 338 | 349 |
Third Quarter 2020 Results
Barrick will release its Q3 2020 results before market open on
Go to the webinar
US and
International (toll) +1 416 915 3239
The Q3 2020 presentation materials will be available on Barrick’s website at www.barrick.com.
The webinar will remain on the website for later viewing, and the conference call will be available for replay by telephone at 1 855 669 9658 (US and
Enquiries:
Claudia Pitre
Analyst, Investor Relations and Corporate Access
+1 416 307 5105
cpitre@barrick.com
Investor and Media Relations
+44 20 7557 7738
barrick@dpapr.com
Technical Information
The scientific and technical information contained in this news release has been reviewed and approved by:
Endnote 1
Barrick is closely monitoring the global Covid-19 pandemic and Barrick's guidance may be impacted if the operation or development of our mines and projects is disrupted due to efforts to slow the spread of the virus.
Endnote 2
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, 38.5%
Endnote 3
Total cash costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce are non-GAAP financial measures which are calculated based on the definition published by the
Total cash costs start with our cost of sales related to gold production and removes depreciation, the non-controlling interest of cost of sales and includes by-product credits. All-in sustaining costs start with total cash costs and include sustaining capital expenditures, sustaining leases, general and administrative costs, minesite exploration and evaluation costs and reclamation cost accretion and amortization. These additional costs reflect the expenditures made to maintain current production levels.
We believe that our use of total cash costs, all-in sustaining costs and all-in costs will assist analysts, investors and other stakeholders of Barrick 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. Due to the capital-intensive nature of the industry and the long useful lives over which these items are depreciated, there can be a significant timing difference between net earnings calculated in accordance with IFRS and the amount of free cash flow that is being generated by a mine and therefore we believe these measures are useful non-GAAP operating metrics and supplement our IFRS disclosures. These measures are not representative of all of our cash expenditures as they do not include income tax payments, interest costs or dividend payments. These measures do not include depreciation or amortization.
Total cash costs per ounce, all-in sustaining costs and all-in costs are intended to provide additional information only and do not have standardized definitions under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not equivalent to net income or cash flow from operations as determined under IFRS. Although the WGC has published a standardized definition, other companies may calculate these measures differently.
C1 cash costs per pound and all-in sustaining costs per pound are non-GAAP financial measures related to our copper mine operations. We believe that C1 cash costs per pound enables investors to better understand the performance of our copper operations in comparison to other copper producers who present results on a similar basis. C1 cash costs per pound excludes royalties and production taxes and non-routine charges as they are not direct production costs. All-in sustaining costs per pound is similar to the gold all-in sustaining costs metric and management uses this to better evaluate the costs of copper production. We believe this measure enables investors to better understand the operating performance of our copper mines as this measure reflects all of the sustaining expenditures incurred in order to produce copper. All-in sustaining costs per pound includes C1 cash costs, sustaining capital expenditures, sustaining leases, general and administrative costs, minesite exploration and evaluation costs, royalties and production taxes, reclamation cost accretion and amortization and write-downs taken on inventory to net realizable value.
Barrick will provide a full reconciliation of these non-GAAP financial measures when the Company reports its quarterly results on
Endnote 4
Includes
Cautionary Statements Regarding Preliminary Third Quarter Production, Sales and Costs for 2020, and Forward-Looking Information
Barrick cautions that, whether or not expressly stated, all third quarter figures contained in this press release including, without limitation, production levels, sales and associated costs are preliminary, and reflect our expected third quarter results as of the date of this press release. Actual reported third quarter production levels, sales and associated costs are subject to management’s final review, as well as review by the Company’s independent accounting firm, and may vary significantly from those expectations because of a number of factors, including, without limitation, additional or revised information, and changes in accounting standards or policies, or in how those standards are applied. Barrick will provide additional discussion and analysis and other important information about its third quarter production levels and sales and associated costs when it reports actual results on
Finally, Barrick cautions that this press release contains forward-looking statements with respect to: (i) Barrick’s production; (ii) costs per ounce for gold and per pound for copper; and (iii) Barrick’s ability to achieve its guidance for the year.
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; the duration of the temporary suspension of operations at Porgera; risks associated with projects in the early stages of evaluation, and for which additional engineering and other analysis is required; disruption of supply routes which may cause delays in construction and mining activities at Barrick’s more remote properties; whether benefits expected from recent transactions are 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; timing of receipt of, or failure to comply with, necessary permits and approvals; uncertainty whether some or all of targeted investments and projects will meet the Company’s capital allocation objectives and internal hurdle rate; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; the impact of inflation; fluctuations in the currency markets; changes in national and local government legislation, taxation, controls or regulations and/ or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in
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
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Source:
2020 GlobeNewswire, Inc., source