All amounts expressed in US dollars
President and chief executive
“As today’s results show, in the face of unprecedented challenges we have succeeded in beating our earnings consensus, reinforcing our 10-year plan and capitalizing on the gold price to maintain an industry-leading balance sheet. Our year-to-date gold production of 3.6 million ounces keeps Barrick on track to achieve our guidance of between 4.6 and 5.0 million ounces for the year,” he said.
Of the group’s capital projects for the assets we operate, only Veladero’s cross-Andean powerline and phase 6 expansion were stalled as a result of
In October,
Subsequent to the third quarter, Barrick and the government of
Bristow said Barrick’s restructuring and portfolio rationalization had made it a more streamlined business with a much improved exploration strategy, particularly in its Latin American region, which should uncover new business opportunities. In the meantime, exploration around its Tier One assets continued to deliver organic growth and the company was expecting to grow mineral resources at most of its key assets.
“Barrick’s consistently strong performance since the merger has more than validated our belief that a combination of the best assets with the best people would deliver the best returns. It also shows that a business flourishes when it is driven by a clear strategy and not by the whims of the market,” Bristow said.
Key Performance Indicators
- Another solid quarter positions Barrick to deliver on annual production guidance
- Higher gold prices drive strong cash flow and increased royalty costs
- Operating cash flow of
$1.9 billion and record free cash flow1 of more than$1.3 billion - Debt net of cash reduced by 71% to
$0.4 billion with no significant maturities until 2033 - Strong operating performance across three quarters highlights asset quality
- Agile organizational structure continues to minimize the impact of Covid-19
- Consistent delivery from copper operations with costs tracking towards low end of guidance range
- Net earnings per share of
50 cents ; adjusted net earnings per share2 up 78% to41 cents for the quarter - Twiga partnership in
Tanzania pays maiden dividend with all stockpiled concentrate sold - Continued improvement in safety across the group year-on-year for both Lost Time and Total Injury Frequency rates
- Capital project teams remobilized in
Argentina while all other capital projects remain on track - Focus on exploration and organic growth highlights upside potential across Tier One11 portfolio
- Significant stratiform mineralization connects Goldrush to Fourmile
- Ongoing portfolio rationalization converts closure properties to value opportunities
- Barrick declares
$0.09 quarterly dividend per share
Financial and Operating Highlights
Financial Results | Q3 2020 | Q2 2020 | Q3 2019 | |||
Realized gold price3,4 ($ per ounce) | 1,926 | 1,725 | 1,476 | |||
Net earnings5 ($ millions) | 882 | 357 | 2,277 | |||
Adjusted net earnings2 ($ millions) | 726 | 415 | 264 | |||
Net cash provided by operating activities ($ millions) | 1,859 | 1,031 | 1,004 | |||
Free cash flow1 ($ millions) | 1,311 | 522 | 502 | |||
Net earnings per share ($) | 0.50 | 0.20 | 1.30 | |||
Adjusted net earnings per share2 ($) | 0.41 | 0.23 | 0.15 | |||
Attributable capital expenditures6 ($ millions) | 436 | 402 | 397 | |||
Operating Results Gold | Q3 2020 | Q2 2020 | Q3 2019 | |||
Production4 (000s of ounces) | 1,155 | 1,149 | 1,306 | |||
Cost of sales (Barrick's share)4,7 ($ per ounce) | 1,065 | 1,075 | 1,065 | |||
Total cash costs4,8 ($ per ounce) | 696 | 716 | 710 | |||
All-in sustaining costs4,8 ($ per ounce) | 966 | 1,031 | 984 | |||
Copper | ||||||
Production9 (millions of pounds) | 103 | 120 | 112 | |||
Cost of sales (Barrick's share)9,10 ($ per pound) | 1.97 | 2.08 | 2.00 | |||
C1 cash costs9,21 ($ per pound) | 1.45 | 1.55 | 1.62 | |||
All-in sustaining costs9,21 ($ per pound) | 2.31 | 2.15 | 2.58 |
Q3 2020 RESULTS PRESENTATION
Webinar and Conference Call
President and CEO
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 and the webinar will remain on the website for later viewing.
BARRICK DECLARES INCREASED DIVIDEND
Barrick today announced that its Board of Directors has declared a dividend for the third quarter of 2020 of
Senior executive vice-president and chief financial officer
“The Board believes that the current dividend increase is sustainable and is reflective of the ongoing robust performance of our operations and continued improvement in the strength of our balance sheet, with total liquidity of
ANNE KABAGAMBE APPOINTED TO BARRICK’S BOARD
Barrick has appointed
Prior to the
She has an undergraduate degree from the
Barrick Executive Chairman
FINDING AND DEVELOPING THE TALENT TO TAKE BARRICK INTO THE FUTURE
A modern mining business needs people who share its vision and its values, and are entrepreneurial, agile, alive to technological and societal changes, and profit-orientated. That is why, in an industry traditionally dominated by aging males, Barrick is building an employee corps with its eye on the future.
Barrick has a long tradition of hiring locally for both operational and managerial roles, in recognition of its host countries’ status as important stakeholders in the business. Current staffing levels of host country nationals in management roles are 80% in
Barrick has now also embarked on a drive to recruit more young people and women. In the year to date, the proportion of new-hires under the age of 30 were 22% in AME, 31% in NA and 36% in LATAM & AP.
“We invest in developing our talent to position us for future growth,” says group human resources executive
Barrick promotes a culture of continuous learning through groupwide programs designed to develop a foundation of operational knowledge and management skills. These include:
- the Compass program, which provides structured training and mentorship for early-career technical employees;
- the Greenfields Talent program, which provides new engineering graduates with underground mining experience; and
- the Finance for Business Leaders program, which encourages an ownership mindset and integrates commercial principles and technical skills.
While many companies have cancelled their internship programs,
Barrick also offers technical skills and apprenticeship training, developed in modules and constantly updated.
The executive team and senior leaders recently held a two-day talent and succession planning review to ensure that the group has the right skills in the right jobs to drive business priorities across the regions and sites. The review also identified potential future leaders for continuing performance assessment and access to individual development plans.
“Barrick’s commitment to supporting education extends beyond its operations,” says Rich. “Nevada Gold Mines recently announced a
WORLD-CLASS GEOLOGISTS
Since the Barrick-Randgold merger reintroduced geology as the foundation of the business, the company has launched a new exploration strategy that is being implemented by rebuilt and reinvigorated exploration teams in each of its regions.
These include linking geology and mineral resource management closely to supply projects of a short- to medium-term nature that could help optimize Life-of-Mine plans and smooth out dips in the production profile.
Secondly, there is the hunt for the next addition to Barrick’s Tier One11 portfolio, which already boasts six of these world-class mines. “Brownfields exploration optimizes our existing assets; a new discovery represents pure growth,” says Quick.
Then there is also the optimization of the value of major undeveloped projects. A prime example of these is Donlin, where a re-review of the model, based on fundamental geological observations, will improve and de-risk the resource model leading to an improved mine plan.
With competition for quality assets becoming more intense, the chase is on to find emerging opportunities early in their value chain and then to secure them by an earn-in or even outright purchase. Historically, Barrick has done well at this, with Goldstrike, Pierina, Loulo and Kibali all outstanding examples of geology-led acquisitions. But
“Short and long-term integrated planning is fundamental to our business culture, and we use the resource triangle as a tool to manage our deliverables,” he says.
“In the final analysis, however, it’s people and ideas that make discoveries, not an exploration process. That’s why we expect more than technical excellence from our geologists. They also need to be entrepreneurial, imaginative and creative — and, as they are often our first point of contact with potential host communities, they also have to grasp the social component of our licence to operate.”
SAP IMPLEMENTATION IN NEVADA MARKS AN IMPORTANT MILESTONE IN BARRICK’S DIGITAL TRANSFORMATION
Barrick’s new transactional system, SAP S4 HANA, has gone live at Nevada Gold Mines and will be rolled out across the entire group in the course of 2021.
The implementation lays one of the key foundations for the group to reap the benefits of becoming truly digital and will enable a new level of real-time decision-making as well as a more agile and business-led approach to systems and data-driven initiatives.
The project stayed on track with a very ambitious timeline despite the obvious challenges presented by the pandemic, with the legacy Newmont sites going live on
Training adopted a new approach, formulated during Barrick’s strategy sessions earlier this year. This involved identifying particularly talented individuals who were added to a pool of ‘super-users’ inside the various business functions. These users take up ownership of the system by acting as the first line of support for issues as well as by driving continuous incremental improvement of the core application. Almost immediately they began delivering refinements and improvements which will be included in future rollouts.
“This project demonstrates the value of having both a very clear end goal and the correct level of executive functional sponsorship on board from the very beginning and we look forward to seeing the results of applying this to future developments,” Hoffman said.
The SAP rollout coincides with the start of a number of equally ambitious initiatives including a common global data platform, a new financial reporting and planning system, as well as various operational technology enhancements, rationalizations and unifications. It also signals the end of siloed local customizations which previously stood in the way of one true global solution.
GLOBAL CLOSURE STRATEGY: PLAN FOR THE END BEFORE THE BEGINNING
The mining industry has traditionally dealt with the issue of mine closures by kicking the can down the road: delaying the inevitable for as long as possible, usually through a series of compliance adjustments.
This is clearly not a sustainable approach, says Barrick president and chief executive
Barrick has a number of legacy sites, in part acquired over the years through mergers and acquisitions. To ensure their successful closure in a consistent manner, the company has adopted a new Global Closure Standard, which group sustainability executive
Its key objectives are to find passive solutions for long-term water management; to prepare sites for a beneficial alternative use and possible divestiture; and to ensure that tailings storage facilities meet or exceed international safety standards.
The new strategy has already delivered significant successes, including the sale of Barrick’s interests in the Morila mine in
These divestitures are expected to deliver value and add to the
“It’s worth noting that while the divestiture sites do not meet our investment criteria, they may have a geological potential that could be realized under different owners with the necessary technical and financial capacity. In those cases, the host country and communities will continue to reap economic benefits when these sites are returned to production by new operators,” Bristow says.
In
Closed Barrick properties are also being used to conduct cutting edge scientific research, including the fundamental neutrino and dark matter research at the Sanford Underground Research Facility located in the underground workings of the former Homestake gold mine in
“Our global closure strategy is in fact a process of beneficial rationalization in which old problems are converted into new opportunities, benefiting all our stakeholders,” Bristow says.
MANAGING BY WALKING ABOUT
Mines cannot be managed effectively by remote control. That’s why after last year’s merger, Barrick’s head office was converted into a much smaller corporate hub providing specialized services while operational management was transferred to the mines.
The new decentralized structure — one of the flattest in the extractive industries for a business of Barrick’s size — means that senior executives directly engage with operations and employees, whom they learn to know personally by name as well as skill-set. It also gives them a first-hand insight into the engine rooms that drive the business, a better perspective on the challenges and opportunities at each site, a chance for best-practice sharing and a forum for collective decision-making.
For the employees, personal access to Barrick’s leadership team provides a platform to propose suggestions, raise and debate issues, contribute to decision-making and reinforce their role in living Barrick’s core values and delivering on its objectives.
Barrick executives visit all the operations in each of the regions at least once a quarter for an in-depth discussion with employees on business execution, safety and environmental performance and the status of key projects. They also use these visits as an opportunity to interface with community leaders.
During Covid-19, this engagement has continued — both on a virtual basis and in person. It's these relationships that have played a significant part in Barrick’s ability to ensure both prompt and effective responses to the pandemic across its portfolio of operations.
PIONEERING KIBALI CONTINUES TO POINT THE WAY
The Kibali mine is on track to deliver at the upper end of its 2020 guidance, says president and chief executive
Kibali was the first underground gold mine in the DRC and is one of the largest in the world. It is a global leader in automation and continues to improve efficiency and productivity through ongoing technological innovation. In the third quarter it set a new ore delivery record from underground, exceeding nameplate for the first time since the shaft was commissioned in 2018.
“Automation is often associated with reduced employment but we use it as an opportunity to further upskill our workers and to reduce our need for expatriate specialists. It is worth noting that Kibali — one of Barrick’s elite corps of Tier One mines — is led by a predominantly Congolese management team in line with our policy of employing and advancing host country nationals,” Bristow said.
A Tier One mine is one capable of producing at least 500,000 ounces of gold annually for at least 10 years in the lower half of the industry’s cost profile. Bristow said brownfields exploration was extending Kibali’s life by replacing reserves depleted by mining. Barrick’s exploration teams are also hunting for the next Kibali elsewhere in the DRC.
During the past quarter, battery technology was successfully integrated into the Kibali power grid to augment the mine’s three hydropower stations and offset the cyclical load of the winder. In line with Barrick’s global move to cleaner energy sources, the new technology will further reduce the mine’s carbon footprint and use of thermal power.
Following a recent meeting with
“The continuing paved extension to the Durba road will provide construction work for local contractors for the next three years. Community support continues to be reinforced through other initiatives such as the Renzi agribusiness project and the planned palm oil project. We also remain committed to transferring skills to the community, and the upgrading of the
Additionally, utility buildings initially built as isolation wards during the Ebola outbreak and subsequently used as a quarantine centre for Covid-19 cases, will now be transitioned to a tropical disease centre to serve local communities.
STRONG PARTNERSHIPS IN
The Loulo-Gounkoto complex remains on track to meet the upper end of its 2020 guidance in the face of multiple challenges including a military coup in
Barrick president and chief executive
The development of the complex’s third underground mine at Gounkoto is on track to deliver its first ore tonnes in the second quarter of 2021. Meanwhile, Barrick’s first solar power plant has been commissioned and is ramping up to deliver 20MW into the microgrid, in line with the company’s strategy of transitioning to cleaner forms of energy.
The complex has paid dividends totalling
Barrick has agreed to sell its other operation in
“We’ve always had great confidence in
Appendix 1
2020 Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS | ||||
2020 forecast attributable production (000s oz) | 2020 forecast cost of sales14 ($/oz) | 2020 forecast total cash costs8 ($/oz) | 2020 forecast all-in sustaining costs8 ($/oz) | |
1,000 - 1,050 | 920 - 970 | 760 - 810 | 1,000 - 1,050 | |
Cortez (61.5%) | 450 - 480 | 980 - 1,030 | 640 - 690 | 910 - 960 |
430 - 460 | 900 - 950 | 540 - 590 | 690 - 740 | |
100 - 120 | 1,850 - 1,900 | 700 - 750 | 920 - 970 | |
130 - 150 | 910 - 960 | 240 - 290 | 450 - 500 | |
2,100 - 2,250 | 970 - 1,020 | 660 - 710 | 880 - 930 | |
200 - 220 | 960 - 1,010 | 800 - 850 | 1,200 - 1,250 | |
2,300 - 2,450 | 970 - 1,020 | 660 - 710 | 900 - 950 | |
Pueblo Viejo (60%) | 530 - 580 | 840 - 890 | 520 - 570 | 720 - 770 |
Veladero (50%) | 240 - 270 | 1,220 - 1,270 | 670 - 720 | 1,250 - 1,300 |
Porgera (47.5%)16 | ||||
800 - 900 | 930 - 980 | 610 - 660 | 890 - 940 | |
Loulo-Gounkoto (80%) | 500 - 540 | 1,050 - 1,100 | 620 - 670 | 970 - 1,020 |
Kibali (45%) | 340 - 370 | 1,030 - 1,080 | 600 - 650 | 790 - 840 |
North Mara (84%)17 | 240 - 270 | 750 - 800 | 570 - 620 | 830 - 880 |
Tongon (89.7%) | 240 - 260 | 1,390 - 1,440 | 680 - 730 | 740 - 790 |
Bulyanhulu (84%)17 | 30 - 50 | 1,210 - 1,260 | 790 - 840 | 1,110 - 1,160 |
Buzwagi (84%)17 | 80 - 100 | 850 - 900 | 820 - 870 | 850 - 900 |
1,450 - 1,600 | 1,040 - 1,090 | 640 - 690 | 870 - 920 | |
Total Attributable to Barrick18,19,20 | 4,600 - 5,000 | 980 - 1,030 | 650 - 700 | 920 - 970 |
COPPER PRODUCTION AND COSTS | ||||
2020 forecast attributable production (Mlbs) | 2020 forecast cost of sales14 ($/lb) | 2020 forecast C1 cash costs21 ($/lb) | 2020 forecast all-in sustaining costs21 ($/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 Copper20 | 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 TCC/C1 Cash Costs and AISC8,21 | ||
Gold price sensitivity25 | |||||
- | - | - | |||
Copper price sensitivity | +/ | +/ | +/ | ||
Appendix 2
Production and Cost Summary - Gold
For the three months ended | |||||||||||
% Change | % Change | ||||||||||
Gold produced (000s oz attributable basis) | 538 | 521 | 3 | % | 535 | 1 | % | ||||
Gold produced (000s oz 100% basis) | 875 | 847 | 3 | % | 870 | 1 | % | ||||
Cost of sales ($/oz) | 1,060 | 1,055 | 0 | % | 1,027 | 3 | % | ||||
Total cash costs ($/oz)b | 723 | 728 | (1 | ) | % | 693 | 4 | % | |||
All-in sustaining costs ($/oz)b | 956 | 985 | (3 | ) | % | 946 | 1 | % | |||
Gold produced (000s oz attributable basis) | 276 | 235 | 17 | % | 278 | (1 | ) | % | |||
Gold produced (000s oz 100% basis) | 448 | 382 | 17 | % | 452 | (1 | ) | % | |||
Cost of sales ($/oz) | 985 | 1,037 | (5 | ) | % | 1,007 | (2 | ) | % | ||
Total cash costs ($/oz)b | 800 | 850 | (6 | ) | % | 775 | 3 | % | |||
All-in sustaining costs ($/oz)b | 1,036 | 1,130 | (8 | ) | % | 1,014 | 2 | % | |||
Cortez (61.5%)d | |||||||||||
Gold produced (000s oz attributable basis) | 113 | 132 | (14 | ) | % | 126 | (10 | ) | % | ||
Gold produced (000s oz 100% basis) | 184 | 215 | (14 | ) | % | 205 | (10 | ) | % | ||
Cost of sales ($/oz) | 1,060 | 870 | 22 | % | 829 | 28 | % | ||||
Total cash costs ($/oz)b | 763 | 613 | 24 | % | 570 | 34 | % | ||||
All-in sustaining costs ($/oz)b | 1,133 | 950 | 19 | % | 772 | 47 | % | ||||
Gold produced (000s oz attributable basis) | 76 | 79 | (4 | ) | % | 82 | (7 | ) | % | ||
Gold produced (000s oz 100% basis) | 124 | 128 | (4 | ) | % | 133 | (7 | ) | % | ||
Cost of sales ($/oz) | 1,097 | 1,073 | 2 | % | 1,077 | 2 | % | ||||
Total cash costs ($/oz)b | 745 | 753 | (1 | ) | % | 622 | 20 | % | |||
All-in sustaining costs ($/oz)b | 805 | 829 | (3 | ) | % | 840 | (4 | ) | % | ||
Gold produced (000s oz attributable basis) | 30 | 35 | (14 | ) | % | 25 | 20 | % | |||
Gold produced (000s oz 100% basis) | 49 | 57 | (14 | ) | % | 41 | 20 | % | |||
Cost of sales ($/oz) | 1,773 | 1,726 | 3 | % | 2,186 | (19 | ) | % | |||
Total cash costs ($/oz)b | 520 | 725 | (28 | ) | % | 1,010 | (49 | ) | % | ||
All-in sustaining costs ($/oz)b | 659 | 957 | (31 | ) | % | 1,622 | (59 | ) | % | ||
Gold produced (000s oz attributable basis) | 43 | 40 | 8 | % | 24 | 79 | % | ||||
Gold produced (000s oz 100% basis) | 70 | 65 | 8 | % | 39 | 79 | % | ||||
Cost of sales ($/oz) | 877 | 1,009 | (13 | ) | % | 1,170 | (25 | ) | % | ||
Total cash costs ($/oz)b | 212 | 308 | (31 | ) | % | 353 | (40 | ) | % | ||
All-in sustaining costs ($/oz)b | 384 | 430 | (11 | ) | % | 714 | (46 | ) | % | ||
Pueblo Viejo (60%) | |||||||||||
Gold produced (000s oz attributable basis) | 129 | 111 | 16 | % | 139 | (7 | ) | % | |||
Gold produced (000s oz 100% basis) | 215 | 185 | 16 | % | 232 | (7 | ) | % | |||
Cost of sales ($/oz) | 791 | 935 | (15 | ) | % | 807 | (2 | ) | % | ||
Total cash costs ($/oz)b | 450 | 579 | (22 | ) | % | 504 | (11 | ) | % | ||
All-in sustaining costs ($/oz)b | 609 | 720 | (15 | ) | % | 631 | (3 | ) | % | ||
Loulo-Gounkoto (80%) | |||||||||||
Gold produced (000s oz attributable basis) | 139 | 141 | (1 | ) | % | 153 | (9 | ) | % | ||
Gold produced (000s oz 100% basis) | 174 | 176 | (1 | ) | % | 191 | (9 | ) | % | ||
Cost of sales ($/oz) | 1,088 | 1,012 | 8 | % | 1,018 | 7 | % | ||||
Total cash costs ($/oz)b | 682 | 639 | 7 | % | 630 | 8 | % | ||||
All-in sustaining costs ($/oz)b | 1,161 | 1,030 | 13 | % | 966 | 20 | % | ||||
Kibali (45%) | |||||||||||
Gold produced (000s oz attributable basis) | 91 | 90 | 1 | % | 91 | 0 | % | ||||
Gold produced (000s oz 100% basis) | 203 | 201 | 1 | % | 202 | 0 | % | ||||
Cost of sales ($/oz) | 1,088 | 1,067 | 2 | % | 1,187 | (8 | ) | % | |||
Total cash costs ($/oz)b | 617 | 617 | 0 | % | 554 | 11 | % | ||||
All-in sustaining costs ($/oz)b | 817 | 739 | 11 | % | 703 | 16 | % | ||||
Veladero (50%) | |||||||||||
Gold produced (000s oz attributable basis) | 44 | 49 | (10 | ) | % | 58 | (24 | ) | % | ||
Gold produced (000s oz 100% basis) | 89 | 98 | (10 | ) | % | 116 | (24 | ) | % | ||
Cost of sales ($/oz) | 1,136 | 1,228 | (7 | ) | % | 1,243 | (9 | ) | % | ||
Total cash costs ($/oz)b | 708 | 801 | (12 | ) | % | 773 | (8 | ) | % | ||
All-in sustaining costs ($/oz)b | 1,159 | 1,383 | (16 | ) | % | 1,142 | 1 | % | |||
Porgera (47.5%)g | |||||||||||
Gold produced (000s oz attributable basis) | — | 24 | 75 | ||||||||
Gold produced (000s oz 100% basis) | — | 51 | 158 | ||||||||
Cost of sales ($/oz) | — | 1,141 | 1,024 | ||||||||
Total cash costs ($/oz)b | — | 875 | 868 | ||||||||
All-in sustaining costs ($/oz)b | — | 1,046 | 1,053 | ||||||||
Tongon (89.7%) | |||||||||||
Gold produced (000s oz attributable basis) | 64 | 64 | 0 | % | 62 | 3 | % | ||||
Gold produced (000s oz 100% basis) | 71 | 71 | 0 | % | 69 | 3 | % | ||||
Cost of sales ($/oz) | 1,329 | 1,275 | 4 | % | 1,396 | (5 | ) | % | |||
Total cash costs ($/oz)b | 731 | 688 | 6 | % | 793 | (8 | ) | % | |||
All-in sustaining costs ($/oz)b | 777 | 745 | 4 | % | 869 | (11 | ) | % | |||
Gold produced (000s oz) | 55 | 54 | 2 | % | 49 | 12 | % | ||||
Cost of sales ($/oz) | 1,257 | 1,268 | (1 | ) | % | 1,083 | 16 | % | |||
Total cash costs ($/oz)b | 1,099 | 1,080 | 2 | % | 953 | 15 | % | ||||
All-in sustaining costs ($/oz)b | 1,497 | 1,456 | 3 | % | 1,280 | 17 | % | ||||
North Marah | |||||||||||
Gold produced (000s oz attributable basis) | 67 | 68 | (1 | ) | % | 29 | 131 | % | |||
Gold produced (000s oz 100% basis) | 80 | 81 | (1 | ) | % | 45 | 78 | % | |||
Cost of sales ($/oz) | 903 | 1,040 | (13 | ) | % | 907 | 0 | % | |||
Total cash costs ($/oz)b | 649 | 724 | (10 | ) | % | 603 | 8 | % | |||
All-in sustaining costs ($/oz)b | 758 | 1,166 | (35 | ) | % | 850 | (11 | ) | % | ||
Buzwagih | |||||||||||
Gold produced (000s oz attributable basis) | 21 | 20 | 5 | % | 18 | 17 | % | ||||
Gold produced (000s oz 100% basis) | 25 | 24 | 5 | % | 28 | (11 | ) | % | |||
Cost of sales ($/oz) | 907 | 909 | 0 | % | 1,292 | (30 | ) | % | |||
Total cash costs ($/oz)b | 687 | 751 | (9 | ) | % | 1,202 | (43 | ) | % | ||
All-in sustaining costs ($/oz)b | 693 | 770 | (10 | ) | % | 1,220 | (43 | ) | % | ||
Bulyanhuluh | |||||||||||
Gold produced (000s oz attributable basis) | 7 | 7 | 0 | % | 6 | 17 | % | ||||
Gold produced (000s oz 100% basis) | 8 | 8 | 0 | % | 9 | (11 | ) | % | |||
Cost of sales ($/oz) | 1,502 | 1,658 | (9 | ) | % | 1,288 | 17 | % | |||
Total cash costs ($/oz)b | 874 | 950 | (8 | ) | % | 729 | 20 | % | |||
All-in sustaining costs ($/oz)b | 913 | 1,014 | (10 | ) | % | 769 | 19 | % | |||
Kalgoorlie (50%)i | |||||||||||
Gold produced (000s oz attributable basis) | 58 | (100 | ) | % | |||||||
Gold produced (000s oz 100% basis) | 116 | (100 | ) | % | |||||||
Cost of sales ($/oz) | 1,037 | (100 | ) | % | |||||||
Total cash costs ($/oz)b | 856 | (100 | ) | % | |||||||
All-in sustaining costs ($/oz)b | 1,170 | (100 | ) | % | |||||||
Total Attributable to Barrickj,i | |||||||||||
Gold produced (000s oz) | 1,155 | 1,149 | 1 | % | 1,306 | (12 | ) | % | |||
Cost of sales ($/oz)k | 1,065 | 1,075 | (1 | ) | % | 1,065 | 0 | % | |||
Total cash costs ($/oz)b | 696 | 716 | (3 | ) | % | 710 | (2 | ) | % | ||
All-in sustaining costs ($/oz)b | 966 | 1,031 | (6 | ) | % | 984 | (2 | ) | % |
- Represents the combined results of Cortez, Goldstrike (including our 60% share of South Arturo) and our 75% interest in
Turquoise Ridge untilJune 30, 2019 . CommencingJuly 1, 2019 , the date Nevada Gold Mines was established, the results represent our 61.5% interest in Cortez,Carlin (including Goldstrike and 60% of South Arturo),Turquoise Ridge (including Twin Creeks),Phoenix andLong Canyon . - These are non-GAAP financial performance measures with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information and a detailed reconciliation of each non-GAAP measure used to the most directly comparable IFRS measure, please see pages 82 to 106 of our third quarter MD&A.
- On
July 1, 2019 , Barrick's Goldstrike and Newmont'sCarlin were contributed to Nevada Gold Mines and are now referred to as Carlin. As a result, the amounts presented represent Goldstrike on a 100% basis (including our 60% share of South Arturo) up untilJune 30, 2019 , and the combined results ofCarlin and Goldstrike (including NGM's 60% share of South Arturo) on a 61.5% basis thereafter. - On
July 1, 2019 , Cortez was contributed to Nevada Gold Mines, a joint venture with Newmont. As a result, the amounts presented are on an 100% basis up untilJune 30, 2019 , and on a 61.5% basis thereafter. - Barrick owned 75% of
Turquoise Ridge through to the end of the second quarter of 2019, with our joint venture partner, Newmont, owning the remaining 25%.Turquoise Ridge was proportionately consolidated on the basis that the joint venture partners that have joint control have rights to the assets and obligations for the liabilities relating to the arrangement. The figures presented in this table are based on our 75% interest inTurquoise Ridge untilJune 30, 2019 . OnJuly 1, 2019 , Barrick's 75% interest inTurquoise Ridge as well as Newmont's Twin Creeks and 25% interest inTurquoise Ridge were contributed to Nevada Gold Mines. StartingJuly 1, 2019 , the results represent our 61.5% share ofTurquoise Ridge and Twin Creeks, now referred to asTurquoise Ridge . - A 61.5% interest in these sites was acquired as a result of the formation of Nevada Gold Mines on
July 1, 2019 . - As Porgera was placed on care and maintenance on
April 25, 2020 , no operating data or per ounce data is provided. - Formerly part of
Acacia Mining plc . OnSeptember 17, 2019 , Barrick acquired all of the shares of Acacia it did not own. Operating results are included at 100% fromOctober 1, 2019 toDecember 31, 2019 (notwithstanding the completion of the Acacia transaction onSeptember 17, 2019 , we consolidated our interest in Acacia and recorded a non-controlling interest of 36.1% in the income statement for the entirety of the third quarter of 2019 as a matter of convenience), and on an 84% basis thereafter as the GoT's 16% free-carried interest was made effective fromJanuary 1, 2020 . - On
November 28, 2019 , we completed the sale of our 50% interest in Kalgoorlie inWestern Australia to Saracen Mineral Holdings Limited for total cash consideration of$750 million . Accordingly, these represent our 50% interest untilNovember 28, 2019 . - Excludes Pierina; Lagunas Norte starting in the fourth quarter of 2019, and Golden Sunlight and Morila (40%) starting in the third quarter of 2019 which are producing incidental ounces as they reach the end of their mine lives.
- Cost of sales per ounce (Barrick’s share) is calculated as gold cost of sales on an attributable basis (excluding sites in care and maintenance) divided by gold attributable ounces sold.
Production and Cost Summary - Copper
For the three months ended | |||||||||
% Change | % Change | ||||||||
Lumwana | |||||||||
Copper production (Mlbs) | 62 | 72 | (14 | ) | % | 65 | (5 | ) | % |
Cost of sales ($/lb) | 2.06 | 2.06 | 0 | % | 2.04 | 1 | % | ||
C1 cash costs ($/lb)a | 1.49 | 1.55 | (4 | ) | % | 1.83 | (19 | ) | % |
All-in sustaining costs ($/lb)a | 2.58 | 2.27 | 14 | % | 3.66 | (30 | ) | % | |
Zaldívar (50%) | |||||||||
Copper production (Mlbs attributable basis) | 24 | 28 | (14 | ) | % | 32 | (25 | ) | % |
Copper production (Mlbs 100% basis) | 48 | 56 | (14 | ) | % | 64 | (25 | ) | % |
Cost of sales ($/lb) | 2.20 | 2.52 | (13 | ) | % | 2.18 | 1 | % | |
C1 cash costs ($/lb)a | 1.64 | 1.79 | (8 | ) | % | 1.55 | 6 | % | |
All-in sustaining costs ($/lb)a | 2.27 | 2.09 | 9 | % | 1.91 | 19 | % | ||
Copper production (Mlbs attributable basis) | 17 | 20 | (15 | ) | % | 15 | 13 | % | |
Copper production (Mlbs 100% basis) | 34 | 40 | (15 | ) | % | 30 | 13 | % | |
Cost of sales ($/lb) | 1.43 | 1.41 | 1 | % | 1.63 | (12 | ) | % | |
C1 cash costs ($/lb)a | 1.14 | 1.14 | 0 | % | 1.42 | (20 | ) | % | |
All-in sustaining costs ($/lb)a | 1.17 | 1.41 | (17 | ) | % | 1.65 | (29 | ) | % |
Total Copper | |||||||||
Copper production (Mlbs attributable basis) | 103 | 120 | (14 | ) | % | 112 | (8 | ) | % |
Cost of sales ($/lb)b | 1.97 | 2.08 | (5 | ) | % | 2.00 | (2 | ) | % |
C1 cash costs ($/lb)a | 1.45 | 1.55 | (6 | ) | % | 1.62 | (10 | ) | % |
All-in sustaining costs ($/lb)a | 2.31 | 2.15 | 7 | % | 2.58 | (10 | ) | % |
- These are non-GAAP financial performance measures with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information and a detailed reconciliation of each non-GAAP measure used to the most directly comparable IFRS measure, please see pages 82 to 106 of our third quarter MD&A.
- Cost of sales per pound (Barrick’s share) is calculated as copper cost of sales plus our equity share of cost of sales attributable to Zaldívar and
Jabal Sayid divided by copper attributable pounds sold.
Technical Information
The scientific and technical information contained in this MD&A has been reviewed and approved by
Endnotes
Endnote 1
“Free cash flow” is a non-GAAP financial performance measure that deducts capital expenditures from net cash provided by operating activities. Barrick believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other companies. Free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on this non-GAAP measure are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
($ millions) | For the three months ended | For the nine months ended | ||||||||||
Net cash provided by operating activities | 1,859 | 1,031 | 1,004 | 3,779 | 1,958 | |||||||
Capital expenditures | (548 | ) | (509 | ) | (502 | ) | (1,508 | ) | (1,255 | ) | ||
Free cash flow | 1,311 | 522 | 502 | 2,271 | 703 |
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; 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 nine months ended | ||||||||||
Net earnings attributable to equity holders of the Company | 882 | 357 | 2,277 | 1,639 | 2,582 | |||||||
Impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and investmentsa | 4 | 23 | (872 | ) | (309 | ) | (857 | ) | ||||
Acquisition/disposition (gains) lossesb | (2 | ) | 8 | (1,901 | ) | (54 | ) | (1,913 | ) | |||
Loss (gain) on currency translation | 16 | 2 | 40 | 34 | 56 | |||||||
Significant tax adjustmentsc | (66 | ) | (7 | ) | 35 | (117 | ) | (40 | ) | |||
Other expense adjustmentsd | (90 | ) | 48 | 53 | 56 | 158 | ||||||
Tax effect and non-controlling intereste | (18 | ) | (16 | ) | 631 | 177 | 616 | |||||
Adjusted net earnings | 726 | 415 | 264 | 1,426 | 602 | |||||||
Net earnings per sharef | 0.50 | 0.20 | 1.30 | 0.92 | 1.47 | |||||||
Adjusted net earnings per sharef | 0.41 | 0.23 | 0.15 | 0.80 | 0.34 | |||||||
a. For the three month period ended
b. Acquisition/disposition gains for the nine month period ended
c. Significant tax adjustments for the nine month period ended
d. Other expense adjustments for the three and nine month period ended
e. Tax effect and non-controlling interest for the three and nine month periods ended
f. 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 nine months ended | ||||||||||||||||||||
Sales | 3,237 | 2,812 | 2,585 | 219 | 184 | 45 | 8,642 | 6,428 | 502 | 311 | |||||||||||
Sales applicable to non-controlling interests | (967 | ) | (822 | ) | (748 | ) | 0 | 0 | 0 | (2,560 | ) | (1,212 | ) | 0 | 0 | ||||||
Sales applicable to equity method investmentsa,b | 183 | 172 | 140 | 121 | 120 | 100 | 502 | 404 | 348 | 345 | |||||||||||
Realized non-hedge gold/copper derivative (losses) gains | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | |||||||||||
Sales applicable to sites in care and maintenancec | (53 | ) | (53 | ) | (32 | ) | 0 | 0 | 0 | (152 | ) | (84 | ) | 0 | 0 | ||||||
Treatment and refinement charges | 4 | 2 | 0 | 39 | 40 | 18 | 6 | 0 | 118 | 74 | |||||||||||
Otherd | 0 | 0 | 0 | 0 | 0 | 0 | 15 | 0 | 0 | 0 | |||||||||||
Revenues – as adjusted | 2,404 | 2,111 | 1,945 | 379 | 344 | 163 | 6,453 | 5,537 | 968 | 730 | |||||||||||
Ounces/pounds sold (000s ounces/millions pounds)c | 1,249 | 1,224 | 1,318 | 116 | 123 | 65 | 3,693 | 4,055 | 349 | 264 | |||||||||||
Realized gold/copper price per ounce/pounde | 1,926 | 1,725 | 1,476 | 3.28 | 2.79 | 2.55 | 1,748 | 1,365 | 2.78 | 2.78 |
a. Represents sales of
b. Sales applicable to equity method investments are net of treatment and refinement charges.
c. 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.
d. Represents a cumulative catch-up adjustment to revenue relating to our streaming arrangements. Refer to note 2f of the 2019 Annual Financial Statements for more information.
e. Realized price per ounce/pound may not calculate based on amounts presented in this table due to rounding.
Endnote 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 and removes depreciation, the non-controlling interest of cost of sales, and includes by product credits. “All-in sustaining costs” per ounce start with “Total cash costs” per ounce and add further costs which reflect the expenditures made to maintain current production levels, primarily sustaining capital expenditures, sustaining leases, general & administrative costs, minesite exploration and evaluation costs, and reclamation cost accretion and amortization. "All-in costs" per ounce starts with "All-in sustaining costs" per ounce and adds additional costs that reflect the varying costs of producing gold over the life-cycle of a mine, including: project capital expenditures and other non-sustaining costs. Barrick believes that the use of “Total cash costs” per ounce, “All-in sustaining costs” per ounce and "All-in costs" per ounce will assist investors, analysts and other stakeholders in understanding the costs associated with producing gold, understanding the economics of gold mining, assessing our operating performance and also our ability to generate free cash flow from current operations and to generate free cash flow on an overall Company basis. “Total cash costs” per ounce, “All-in sustaining costs” per ounce and "All-in costs" per ounce are intended to provide additional information only and do not have any standardized meaning under IFRS. Although a standardized definition of all-in sustaining costs was published in 2013 by the
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 nine months ended | |||||||||
Footnote | |||||||||||
Cost of sales applicable to gold production | 1,768 | 1,740 | 1,831 | 5,151 | 4,618 | ||||||
Depreciation | (508 | ) | (498 | ) | (538 | ) | (1,480 | ) | (1,353 | ) | |
Cash cost of sales applicable to equity method investments | 53 | 62 | 45 | 156 | 169 | ||||||
By-product credits | (84 | ) | (59 | ) | (48 | ) | (172 | ) | (95 | ) | |
Realized (gains) losses on hedge and non-hedge derivatives | a | 0 | 1 | 1 | 1 | 0 | |||||
Non-recurring items | b | 0 | 0 | (4 | ) | 0 | (33 | ) | |||
Other | c | (24 | ) | (26 | ) | (19 | ) | (77 | ) | (65 | ) |
Non-controlling interests | d | (337 | ) | (336 | ) | (339 | ) | (989 | ) | (552 | ) |
Total cash costs | 868 | 884 | 929 | 2,590 | 2,689 | ||||||
General & administrative costs | 50 | 71 | 68 | 161 | 181 | ||||||
Minesite exploration and evaluation costs | e | 19 | 23 | 22 | 57 | 45 | |||||
Minesite sustaining capital expenditures | f | 415 | 420 | 406 | 1,205 | 926 | |||||
Sustaining leases | 9 | 10 | 5 | 19 | 23 | ||||||
Rehabilitation - accretion and amortization (operating sites) | g | 13 | 12 | 28 | 39 | 58 | |||||
Non-controlling interest, copper operations and other | h | (166 | ) | (158 | ) | (184 | ) | (438 | ) | (335 | ) |
All-in sustaining costs | 1,208 | 1,262 | 1,274 | 3,633 | 3,587 | ||||||
Project exploration and evaluation and project costs | e | 53 | 55 | 64 | 164 | 213 | |||||
Community relations costs not related to current operations | 0 | 0 | 1 | 1 | 2 | ||||||
Project capital expenditures | f | 126 | 85 | 96 | 287 | 324 | |||||
Rehabilitation - accretion and amortization (non-operating sites) | g | 3 | 4 | 5 | 9 | 19 | |||||
Non-controlling interest and copper operations and other | h | (47 | ) | (36 | ) | (46 | ) | (100 | ) | (77 | ) |
All-in costs | 1,343 | 1,370 | 1,394 | 3,994 | 4,068 | ||||||
Ounces sold - equity basis (000s ounces) | i | 1,249 | 1,224 | 1,318 | 3,693 | 4,055 | |||||
Cost of sales per ounce | j,k | 1,065 | 1,075 | 1,065 | 1,054 | 991 | |||||
Total cash costs per ounce | k | 696 | 716 | 710 | 701 | 663 | |||||
Total cash costs per ounce (on a co-product basis) | k,l | 742 | 747 | 735 | 732 | 680 | |||||
All-in sustaining costs per ounce | k | 966 | 1,031 | 984 | 984 | 883 | |||||
All-in sustaining costs per ounce (on a co-product basis) | k,l | 1,012 | 1,062 | 1,009 | 1,015 | 900 | |||||
All-in costs per ounce | k | 1,076 | 1,118 | 1,074 | 1,082 | 999 | |||||
All-in costs per ounce (on a co-product basis) | k,l | 1,122 | 1,149 | 1,099 | 1,113 | 1,016 |
a. Realized (gains) losses on hedge and non-hedge derivatives
Includes realized hedge losses of $nil and $nil, respectively, for the three and nine month periods ended
b. Non-recurring items
Non-recurring items in 2019 relate to organizational restructuring. These costs are not indicative of our cost of production and have been excluded from the calculation of total cash costs.
c. Other
Other adjustments for the three and nine month period ended
d. Non-controlling interests
Non-controlling interests include non-controlling interests related to gold production of
e. Exploration and evaluation costs
Exploration, evaluation and project expenses are presented as minesite sustaining if it supports current mine operations and project if it relates to future projects. Refer to page 75 of the Q3 2020 MD&A.
f. Capital expenditures
Capital expenditures are related to our gold sites only and are split between minesite sustaining and project capital expenditures. Project capital expenditures are distinct projects designed to increase the net present value of the mine and are not related to current production. Significant projects in the current year are the expansion project at Pueblo Viejo, the Goldrush exploration declines, the restart of mining activities at Bulyanhulu, and construction of the third shaft at
g. Rehabilitation—accretion and amortization
Includes depreciation on the assets related to rehabilitation provisions of our gold operations and accretion on the rehabilitation provision of our gold operations, split between operating and non-operating sites.
h. Non-controlling interest and copper operations
Removes general & administrative costs related to non-controlling interests and copper based on a percentage allocation of revenue. Also removes exploration, evaluation and project expenses, rehabilitation costs and capital expenditures incurred by our copper sites and the non-controlling interest of North Mara, Bulyanhulu and Buzwagi (notwithstanding the completion of the Acacia transaction on
($ millions) | For the three months ended | For the nine months ended | ||||||||
Non-controlling interest, copper operations and other | ||||||||||
General & administrative costs | (6 | ) | (8 | ) | (22 | ) | (20 | ) | (55 | ) |
Minesite exploration and evaluation expenses | (5 | ) | (8 | ) | (9 | ) | (16 | ) | (10 | ) |
Rehabilitation - accretion and amortization (operating sites) | (3 | ) | (4 | ) | (10 | ) | (11 | ) | (12 | ) |
Minesite sustaining capital expenditures | (152 | ) | (138 | ) | (143 | ) | (391 | ) | (258 | ) |
All-in sustaining costs total | (166 | ) | (158 | ) | (184 | ) | (438 | ) | (335 | ) |
Project exploration and evaluation and project costs | (9 | ) | (9 | ) | (12 | ) | (21 | ) | (40 | ) |
Project capital expenditures | (38 | ) | (27 | ) | (34 | ) | (79 | ) | (37 | ) |
All-in costs total | (47 | ) | (36 | ) | (46 | ) | (100 | ) | (77 | ) |
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 nine months ended | ||||||||
By-product credits | 84 | 59 | 48 | 172 | 95 | |||||
Non-controlling interest | (29 | ) | (22 | ) | (16 | ) | (65 | ) | (31 | ) |
By-product credits (net of non-controlling interest) | 55 | 37 | 32 | 107 | 64 |
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
A Tier One Gold Asset is a mine with a stated life in excess of 10 years, annual production of at least 500,000 ounces of gold and total cash costs per ounce over the mine life that are in the lower half of the industry cost curve.
Endnote 12
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 13
Endnote 14
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 38.5% of Nevada Gold Mines (including 63.1% of South Arturo), 40% of Pueblo Viejo, 20% of Loulo-Gounkoto, 10.3% of Tongon, and 16% of North Mara, Bulyanhulu and Buzwagi from cost of sales and including our proportionate share of cost of sales attributable to our equity method investments in Kibali), divided by attributable gold ounces sold. Cost of sales applicable to copper per pound is calculated using cost of sales applicable to copper including our proportionate share of cost of sales attributable to our equity method investments in Zaldívar and
Endnote 15
Includes our 36.9% share of South Arturo.
Endnote 16
Based on the communication we received from the Government of
Endnote 17
Amounts are on an 84% basis as the GoT's 16% free-carried interest was made effective from
Endnote 18
Total cash costs and all-in sustaining costs per ounce include the impact of hedges and/or costs allocated to non-operating sites.
Endnote 19
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 20
Includes corporate administration costs.
Endnote 21
“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 nine months ended | ||||||||
Cost of sales | 154 | 153 | 49 | 431 | 281 | |||||
Depreciation/amortization | (61 | ) | (63 | ) | (13 | ) | (167 | ) | (83 | ) |
Treatment and refinement charges | 39 | 40 | 18 | 118 | 74 | |||||
Cash cost of sales applicable to equity method investments | 57 | 72 | 59 | 195 | 194 | |||||
Less: royalties and production taxesa | (16 | ) | (11 | ) | (5 | ) | (38 | ) | (26 | ) |
By-product credits | (4 | ) | (3 | ) | (3 | ) | (10 | ) | (8 | ) |
Other | 0 | 0 | 0 | (5 | ) | |||||
C1 cash costs | 169 | 188 | 105 | 529 | 427 | |||||
General & administrative costs | 4 | 6 | 5 | 13 | 16 | |||||
Rehabilitation - accretion and amortization | 2 | 2 | 2 | 7 | 8 | |||||
Royalties and production taxesa | 16 | 11 | 5 | 38 | 26 | |||||
Minesite exploration and evaluation costs | 2 | 1 | 1 | 4 | 4 | |||||
Minesite sustaining capital expenditures | 74 | 52 | 48 | 158 | 155 | |||||
Sustaining leases | 2 | 2 | 0 | 7 | 2 | |||||
All-in sustaining costs | 269 | 262 | 166 | 756 | 638 | |||||
Pounds sold - consolidated basis (millions pounds) | 116 | 123 | 65 | 349 | 264 | |||||
Cost of sales per poundb,c | 1.97 | 2.08 | 2.00 | 2.01 | 2.10 | |||||
C1 cash cost per poundb | 1.45 | 1.55 | 1.62 | 1.52 | 1.62 | |||||
All-in sustaining costs per poundb | 2.31 | 2.15 | 2.58 | 2.17 | 2.42 |
a. For the three and nine month period ended
b. Cost of sales per pound, C1 cash costs per pound and all-in sustaining costs per pound may not calculate based on amounts presented in this table due to rounding.
c. 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
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; 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 nine months ended | ||||||||||
Net earnings (loss) | 1,271 | 622 | 2,435 | 2,556 | 2,798 | |||||||
Income tax expense | 284 | 258 | 791 | 928 | 999 | |||||||
Finance costs, neta | 72 | 74 | 106 | 234 | 304 | |||||||
Depreciation | 574 | 566 | 559 | 1,664 | 1,460 | |||||||
EBITDA | 2,201 | 1,520 | 3,891 | 5,382 | 5,561 | |||||||
Impairment charges (reversals) of long-lived assetsb | 4 | 23 | (872 | ) | (309 | ) | (857 | ) | ||||
Acquisition/disposition (gains) lossesc | (2 | ) | 8 | (1,901 | ) | (54 | ) | (1,913 | ) | |||
Loss on currency translation | 16 | 2 | 40 | 34 | 56 | |||||||
Other expense (income) adjustmentsd | (90 | ) | 48 | 53 | 56 | 158 | ||||||
Unrealized (gains) losses on non-hedge derivative instruments | 0 | 0 | 1 | 0 | 0 | |||||||
Income tax expense, net finance costs, and depreciation from equity investees | 94 | 96 | 85 | 277 | 266 | |||||||
Adjusted EBITDA | 2,223 | 1,697 | 1,297 | 5,386 | 3,271 |
a. Finance costs exclude accretion.
b. For the three month period ended
c. Acquisition/disposition gains for the nine month period ended
d. Other expense adjustments for the three and nine month period ended
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 nine months ended | ||||||||||||||||||
% Change | % Change | % Change | |||||||||||||||||
Financial Results ($ millions) | |||||||||||||||||||
Revenues | 3,540 | 3,055 | 16 | % | 2,678 | 32 | % | 9,316 | 6,834 | 36 | % | ||||||||
Cost of sales | 1,927 | 1,900 | 1 | % | 1,889 | 2 | % | 5,603 | 4,924 | 14 | % | ||||||||
Net earningsa | 882 | 357 | 147 | % | 2,277 | (61 | ) | % | 1,639 | 2,582 | (37 | ) | % | ||||||
Adjusted net earningsb | 726 | 415 | 75 | % | 264 | 175 | % | 1,426 | 602 | 137 | % | ||||||||
Adjusted EBITDAb | 2,223 | 1,697 | 31 | % | 1,297 | 71 | % | 5,386 | 3,271 | 65 | % | ||||||||
Adjusted EBITDA marginb,c | 63 | % | 56 | % | 13 | % | 48 | % | 31 | % | 58 | % | 48 | % | 21 | % | |||
Minesite sustaining capital expendituresd | 415 | 420 | (1 | ) | % | 406 | 2 | % | 1,205 | 926 | 30 | % | |||||||
Project capital expendituresd | 126 | 85 | 48 | 96 | 31 | 287 | 324 | (11 | ) | % | |||||||||
Total consolidated capital expendituresd,e | 548 | 509 | 8 | 502 | 9 | 1,508 | 1,255 | 20 | % | ||||||||||
Net cash provided by operating activities | 1,859 | 1,031 | 80 | % | 1,004 | 85 | % | 3,779 | 1,958 | 93 | % | ||||||||
Net cash provided by operating activities marginf | 53 | % | 34 | % | 56 | % | 37 | % | 43 | % | 41 | % | 29 | % | 41 | % | |||
Free cash flowb | 1,311 | 522 | 151 | % | 502 | 161 | % | 2,271 | 703 | 223 | % | ||||||||
Net earnings per share (basic and diluted) | 0.50 | 0.20 | 150 | % | 1.30 | (62 | ) | % | 0.92 | 1.47 | (37 | ) | % | ||||||
Adjusted net earnings (basic)b per share | 0.41 | 0.23 | 78 | % | 0.15 | 173 | % | 0.80 | 0.34 | 135 | % | ||||||||
Weighted average diluted common shares (millions of shares) | 1,778 | 1,778 | 0 | % | 1,756 | 1 | % | 1,778 | 1,751 | 2 | % | ||||||||
Operating Results | |||||||||||||||||||
Gold production (thousands of ounces)g | 1,155 | 1,149 | 1 | % | 1,306 | (12 | ) | % | 3,554 | 4,026 | (12 | ) | % | ||||||
Gold sold (thousands of ounces)g | 1,249 | 1,224 | 2 | % | 1,318 | (5 | ) | % | 3,693 | 4,055 | (9 | ) | % | ||||||
Market gold price ($/oz) | 1,909 | 1,711 | 12 | % | 1,472 | 30 | % | 1,735 | 1,364 | 27 | % | ||||||||
Realized gold priceb,g ($/oz) | 1,926 | 1,725 | 12 | % | 1,476 | 30 | % | 1,748 | 1,365 | 28 | % | ||||||||
Gold cost of sales (Barrick’s share)g,h ($/oz) | 1,065 | 1,075 | (1 | ) | % | 1,065 | 0 | % | 1,054 | 991 | 6 | % | |||||||
Gold total cash costsb,g ($/oz) | 696 | 716 | (3 | ) | % | 710 | (2 | ) | % | 701 | 663 | 6 | % | ||||||
Gold all-in sustaining costsb,g ($/oz) | 966 | 1,031 | (6 | ) | % | 984 | (2 | ) | % | 984 | 883 | 11 | % | ||||||
Copper production (millions of pounds)i | 103 | 120 | (14 | ) | % | 112 | (8 | ) | % | 338 | 315 | 7 | % | ||||||
Copper sold (millions of pounds)i | 116 | 123 | (6 | ) | % | 65 | 78 | % | 349 | 264 | 32 | % | |||||||
Market copper price ($/lb) | 2.96 | 2.43 | 22 | % | 2.63 | 13 | % | 2.65 | 2.74 | (3 | ) | % | |||||||
Realized copper priceb,i ($/lb) | 3.28 | 2.79 | 18 | % | 2.55 | 29 | % | 2.78 | 2.78 | 0 | % | ||||||||
Copper cost of sales (Barrick’s share)i,j ($/lb) | 1.97 | 2.08 | (5 | ) | % | 2.00 | (2 | ) | % | 2.01 | 2.10 | (4 | ) | % | |||||
Copper C1 cash costsb,i ($/lb) | 1.45 | 1.55 | (6 | ) | % | 1.62 | (10 | ) | % | 1.52 | 1.62 | (6 | ) | % | |||||
Copper all-in sustaining costsb,i ($/lb) | 2.31 | 2.15 | 7 | % | 2.58 | (10 | ) | % | 2.17 | 2.42 | (10 | ) | % | ||||||
As at | As at | % Change | As at | % Change | |||||||||||||||
Financial Position ($ millions) | |||||||||||||||||||
Debt (current and long-term) | 5,161 | 5,168 | 0 | % | 5,560 | (7 | ) | % | |||||||||||
Cash and equivalents | 4,744 | 3,743 | 27 | % | 2,405 | 97 | % | ||||||||||||
Debt, net of cash | 417 | 1,425 | (71 | ) | % | 3,155 | (87 | ) | % |
- Net earnings represents net earnings attributable to the equity holders of the Company.
- 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 82 to 106 of our third quarter MD&A.
- Represents adjusted EBITDA divided by revenue.
- Amounts presented on a consolidated cash basis. Project capital expenditures are included in our calculation of all-in costs, but not included in our calculation of all-in sustaining costs.
- Total consolidated capital expenditures also includes capitalized interest.
- Represents net cash provided by operating activities divided by revenue.
- Includes North Mara, Bulyanhulu and Buzwagi on a 84% basis starting
January 1, 2020 (and on a 63.9% basis fromJanuary 1, 2019 toSeptember 30, 2019 ; notwithstanding the completion of the Acacia transaction onSeptember 17, 2019 , we consolidated our interest in Acacia and recorded a non-controlling interest of 36.1% in the income statement for the entirety of the third quarter of 2019 as a matter of convenience, and on a 100% basis fromOctober 1, 2019 toDecember 31, 2019 ), Pueblo Viejo on a 60% basis, South Arturo on a 36.9% basis fromJuly 1, 2019 onwards as a result of its contribution to Nevada Gold Mines (and on a 60% basis fromJanuary 1, 2019 toJune 30, 2019 ), Veladero on a 50% basis, Loulo-Gounkoto on an 80% basis, Kibali on a 45% basis, Tongon on an 89.7% basis, and Morila on a 40% basis until the second quarter of 2019, which reflects our equity share of production and sales. Also removes the non-controlling interest of 38.5% Nevada Gold Mines fromJuly 1, 2019 onwards. - 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.
- Amounts reflect production and sales from
Jabal Sayid and Zaldívar on a 50% basis, which reflects our equity share of production, and Lumwana. - 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
Jabal Sayid divided by pounds sold.
Consolidated Statements of Income
(in millions of | Three months ended | Nine months ended | |||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Revenue (notes 5 and 6) | |||||||||||
Costs and expenses (income) | |||||||||||
Cost of sales (notes 5 and 7) | 1,927 | 1,889 | 5,603 | 4,924 | |||||||
General and administrative expenses | 50 | 68 | 161 | 181 | |||||||
Exploration, evaluation and project expenses | 72 | 86 | 221 | 258 | |||||||
Impairment (reversals) charges (notes 9B and 13) | 4 | (872 | ) | (309 | ) | (857 | ) | ||||
Loss on currency translation | 16 | 40 | 34 | 56 | |||||||
Closed mine rehabilitation | 8 | 5 | 105 | 46 | |||||||
Income from equity investees (note 12) | (95 | ) | (38 | ) | (210 | ) | (116 | ) | |||
Other income (note 9A) | (78 | ) | (1,851 | ) | (40 | ) | (1,818 | ) | |||
Income before finance costs and income taxes | |||||||||||
Finance costs, net | (81 | ) | (125 | ) | (267 | ) | (363 | ) | |||
Income before income taxes | |||||||||||
Income tax expense (note 10) | (284 | ) | (791 | ) | (928 | ) | (999 | ) | |||
Net income | |||||||||||
Attributable to: | |||||||||||
Equity holders of | |||||||||||
Non-controlling interests | |||||||||||
Earnings per share data attributable to the equity holders of | |||||||||||
Net income | |||||||||||
Basic | |||||||||||
Diluted |
The notes to these unaudited condensed interim financial statements, which are contained in the Third 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 | Nine months ended | ||||||||
2020 | 2019 | 2020 | 2019 | |||||||
Net income | $1,271 | $2,556 | ||||||||
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 | (3 | ) | — | (4 | ) | — | ||||
Realized (gains) losses on derivatives designated as cash flow hedges, net of tax $nil, $nil, $nil and $nil | 3 | — | 3 | — | ||||||
Currency translation adjustments, net of tax $nil, $nil, $nil and $nil | (1 | ) | (1 | ) | (6 | ) | (4 | ) | ||
Items that will not be reclassified to profit or loss: | ||||||||||
Actuarial gain (loss) on post employment benefit obligations, net of tax | — | — | (2 | ) | — | |||||
Net change on equity investments, net of tax ( | 38 | 53 | 131 | 60 | ||||||
Total other comprehensive income | 37 | 52 | 122 | 56 | ||||||
Total comprehensive income | $1,308 | $2,678 | ||||||||
Attributable to: | ||||||||||
Equity holders of | $919 | $1,761 | ||||||||
Non-controlling interests | $389 | $917 |
The notes to these unaudited condensed interim financial statements, which are contained in the Third Quarter Report 2020 available on our website are an integral part of these consolidated financial statements.
Consolidated Statements of Cash Flow
(in millions of | Three months ended | Nine months ended | |||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | |||||||||||
Adjustments for the following items: | |||||||||||
Depreciation | 574 | 559 | 1,664 | 1,460 | |||||||
Finance costs, net | 83 | 129 | 280 | 381 | |||||||
Impairment (reversals) charges (notes 9B and 13) | 4 | (872 | ) | (309 | ) | (857 | ) | ||||
Income tax expense (note 10) | 284 | 791 | 928 | 999 | |||||||
Remeasurement of | — | (1,886 | ) | — | (1,886 | ) | |||||
Gain on sale of non-current assets | (2 | ) | (15 | ) | (54 | ) | (27 | ) | |||
Loss on currency translation | 16 | 40 | 34 | 56 | |||||||
Change in working capital (note 11) | (3 | ) | 67 | (344 | ) | (263 | ) | ||||
Other operating activities (note 11) | (244 | ) | (126 | ) | (226 | ) | (112 | ) | |||
Operating cash flows before interest and income taxes | 1,983 | 1,122 | 4,529 | 2,549 | |||||||
Interest paid | (19 | ) | (31 | ) | (173 | ) | (196 | ) | |||
Income taxes paid | (105 | ) | (87 | ) | (577 | ) | (395 | ) | |||
Net cash provided by operating activities | 1,859 | 1,004 | 3,779 | 1,958 | |||||||
INVESTING ACTIVITIES | |||||||||||
Property, plant and equipment | |||||||||||
Capital expenditures (note 5) | (548 | ) | (502 | ) | (1,508 | ) | (1,255 | ) | |||
Sales proceeds | 8 | 13 | 24 | 31 | |||||||
Investment sales (purchases) | 2 | 3 | 208 | (4 | ) | ||||||
Divestitures (note 4) | — | — | 256 | — | |||||||
Cash acquired in merger | — | — | — | 751 | |||||||
Other investing activities (note 11) | 84 | 103 | 139 | 165 | |||||||
Net cash used in investing activities | (454 | ) | (383 | ) | (881 | ) | (312 | ) | |||
FINANCING ACTIVITIES | |||||||||||
Lease repayments | (8 | ) | (5 | ) | (20 | ) | (23 | ) | |||
Debt repayments | — | (264 | ) | (351 | ) | (280 | ) | ||||
Dividends | (141 | ) | (67 | ) | (387 | ) | (461 | ) | |||
Funding from non-controlling interests | — | 102 | 1 | 116 | |||||||
Disbursements to non-controlling interests | (259 | ) | (133 | ) | (693 | ) | (161 | ) | |||
Other financing activities | — | (2 | ) | (15 | ) | (2 | ) | ||||
Net cash used in financing activities | (408 | ) | (369 | ) | (1,465 | ) | (811 | ) | |||
Effect of exchange rate changes on cash and equivalents | 4 | — | (3 | ) | (1 | ) | |||||
Net increase in cash and equivalents | 1,001 | 252 | 1,430 | 834 | |||||||
Cash and equivalents at the beginning of period | 3,743 | 2,153 | 3,314 | 1,571 | |||||||
Cash and equivalents at the end of period |
The notes to these unaudited condensed interim financial statements, which are contained in the Third Quarter Report 2020 available on our website are an integral part of these consolidated financial statements.
Consolidated Balance Sheets
(in millions of | As at | As at | |||
2020 | 2019 | ||||
ASSETS | |||||
Current assets | |||||
Cash and equivalents (note 14A) | |||||
Accounts receivable | 509 | 363 | |||
Inventories | 2,111 | 2,289 | |||
Other current assets | 495 | 565 | |||
Total current assets (excluding assets classified as held for sale) | |||||
Assets classified as held for sale | — | 356 | |||
Total current assets | |||||
Non-current assets | |||||
Equity in investees (note 12) | 4,643 | 4,527 | |||
Property, plant and equipment | 24,698 | 24,141 | |||
4,769 | 4,769 | ||||
Intangible assets | 170 | 226 | |||
Deferred income tax assets | 165 | 235 | |||
Non-current portion of inventory | 2,392 | 2,300 | |||
Other assets | 1,420 | 1,307 | |||
Total assets | |||||
LIABILITIES AND EQUITY | |||||
Current liabilities | |||||
Accounts payable | |||||
Debt (note 14B) | 21 | 375 | |||
Current income tax liabilities | 339 | 224 | |||
Other current liabilities | 359 | 622 | |||
Total current liabilities | |||||
Non-current liabilities | |||||
Debt (note 14B) | 5,140 | 5,161 | |||
Provisions | 3,311 | 3,114 | |||
Deferred income tax liabilities | 3,064 | 3,091 | |||
Other liabilities | 1,200 | 823 | |||
Total liabilities | |||||
Equity | |||||
Capital stock (note 16) | |||||
Deficit | (8,474 | ) | (9,722 | ) | |
Accumulated other comprehensive loss | — | (122 | ) | ||
Other | 2,038 | 2,045 | |||
Total equity attributable to | |||||
Non-controlling interests | 8,851 | 8,395 | |||
Total equity | |||||
Contingencies and commitments (notes 5 and 17) | |||||
Total liabilities and equity |
The notes to these unaudited condensed interim financial statements, which are contained in the Third 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 | ( | ) | ( | ) | ||||||||||||||||
Net income | — | — | 1,639 | — | — | 1,639 | 917 | 2,556 | |||||||||||||
Total other comprehensive income (loss) | — | — | — | 122 | — | 122 | — | 122 | |||||||||||||
Total comprehensive income | — | — | 1,639 | 122 | — | 1,761 | 917 | 2,678 | |||||||||||||
Transactions with owners | |||||||||||||||||||||
Dividends | — | — | (387 | ) | — | — | (387 | ) | — | (387 | ) | ||||||||||
Issuance of 16% interest in | — | — | — | — | — | — | 238 | 238 | |||||||||||||
Sale of Acacia exploration properties | — | — | — | — | (13 | ) | (13 | ) | 13 | — | |||||||||||
Issued on exercise of stock options | 70 | — | — | — | — | — | — | — | |||||||||||||
Funding from non-controlling interests | — | — | — | — | — | — | 1 | 1 | |||||||||||||
Disbursements to non-controlling interests | — | — | — | — | — | — | (713 | ) | (713 | ) | |||||||||||
Dividend reinvestment plan (note 16) | 129 | 4 | (4 | ) | — | — | — | — | — | ||||||||||||
Share-based payments | — | — | — | — | 6 | 6 | — | 6 | |||||||||||||
Total transactions with owners | 199 | 4 | (391 | ) | — | (7 | ) | (394 | ) | (461 | ) | (855 | ) | ||||||||
At | 1,778,126 | ( | ) | $— | |||||||||||||||||
At | 1,167,847 | ( | ) | ( | ) | ||||||||||||||||
Net income | — | — | 2,582 | — | — | 2,582 | 216 | 2,798 | |||||||||||||
Total other comprehensive income | — | — | — | 56 | — | 56 | — | 56 | |||||||||||||
Total comprehensive income | — | — | 2,582 | 56 | — | 2,638 | 216 | 2,854 | |||||||||||||
Transactions with owners | |||||||||||||||||||||
Dividends | — | — | (131 | ) | — | — | (131 | ) | — | (131 | ) | ||||||||||
Merger with | 583,669 | 7,903 | — | — | — | 7,903 | 874 | 8,777 | |||||||||||||
Nevada Gold Mines JV with | — | — | — | — | 1,645 | 1,645 | 5,909 | 7,554 | |||||||||||||
Acquisition of 36.1% of Acacia Mining plc | 24,837 | 423 | — | — | 70 | 493 | (495 | ) | (2 | ) | |||||||||||
Issued on exercise of stock options | 130 | 1 | — | — | — | 1 | — | 1 | |||||||||||||
Funding from non-controlling interests | — | — | — | — | — | — | 116 | 116 | |||||||||||||
Disbursements to non-controlling interests | — | — | — | — | — | — | (161 | ) | (161 | ) | |||||||||||
Dividend reinvestment plan (note 16) | 1,299 | 18 | (18 | ) | — | — | — | — | — | ||||||||||||
Share-based payments | — | — | — | — | 7 | 7 | — | 7 | |||||||||||||
Total transactions with owners | 609,935 | 8,345 | (149 | ) | — | 1,722 | 9,918 | 6,243 | 16,161 | ||||||||||||
At | 1,777,782 | ( | ) | ( | ) |
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 Third Quarter Report 2020 available on our website are an integral part of these consolidated financial statements.
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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, including the sale of Barrick’s interest in the Morila mine and Barrick’s global closure strategy; production rates; Barrick’s response to the government of Papua New Guinea’s decision not to extend Porgera’s Special
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