All amounts expressed in US dollars
As previously guided, Barrick’s Q4 gold production is expected to be the strongest of 2021 following the repair of the mill at Carlin’s Goldstrike roaster late in Q3. Consequently, for
The average market price for gold in Q3 was
Preliminary Q3 gold production was higher than Q2, with improved performance at NGM following planned maintenance shutdowns in the previous quarter, the continuing ramp-up of operations at Bulyanhulu and improved performance at Veladero following the commissioning of the Phase 6 leach pad expansion in Q2. Q3 gold cost of sales per ounce4 and total cash costs per ounce5 are both expected to be flat to 2% higher and all-in sustaining costs per ounce5 are expected to be 4 to 6% lower than Q2.
Preliminary Q3 copper production was higher than Q2, and Q4 is expected to be the strongest quarter of the year, mainly driven by higher grades from Lumwana. Q3 copper cost of sales per pound4 is expected to be 5 to 7% higher, C1 cash costs per pound5 are expected to be flat to 2% higher and copper all-in sustaining costs per pound5 are expected to be 4 to 6% lower than Q2.
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)) | ||||
Carlin6 (61.5%) | 209 | 202 | 628 | 625 |
Cortez (61.5%) | 130 | 126 | 340 | 338 |
82 | 82 | 252 | 253 | |
43 | 42 | 128 | 127 | |
31 | 33 | 84 | 85 | |
495 | 485 | 1,432 | 1,428 | |
Loulo-Gounkoto (80%) | 137 | 134 | 434 | 430 |
Pueblo Viejo (60%) | 127 | 125 | 381 | 384 |
Kibali (45%) | 95 | 93 | 272 | 272 |
North Mara (84%) | 66 | 65 | 191 | 187 |
Bulyanhulu (84%) | 53 | 49 | 121 | 113 |
Veladero (50%) | 48 | 44 | 111 | 123 |
Tongon (89.7%) | 41 | 41 | 137 | 138 |
26 | 29 | 115 | 118 | |
Buzwagi (84%) | 4 | 6 | 40 | 41 |
Total Gold | 1,092 | 1,071 | 3,234 | 3,234 |
Copper (equity pounds (millions)) | ||||
Lumwana | 57 | 64 | 164 | 191 |
Zaldívar (50%) | 24 | 25 | 70 | 72 |
19 | 12 | 55 | 47 | |
Total Copper | 100 | 101 | 289 | 310 |
Third Quarter 2021 Results
Barrick will release its Q3 2021 results before market open on
Go to the webinar
US and
International (toll) +1 416 915 3239
The Q3 2021 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:
Manager, Investor Relations and Corporate Access
+1 416 307 5105
cpitre@barrick.com
Investor and Media Relations
+44 20 7557 7738
barrick@dpapr.com
Website: www.barrick.com
Technical Information
The scientific and technical information contained in this news release has been reviewed and approved by:
Endnote 1
Porgera was placed on temporary care and maintenance in
Endnote 2
Copper realized price is a non-GAAP financial measure which excludes from sales: (i) unrealized gains and losses on non-hedge derivative contracts; (ii) unrealized mark-to-market gains and losses on provisional pricing from copper sales contracts; (iii) sales attributable to ore purchase arrangements; and (iv) treatment and refining charges.
This measure is intended to enable management to better understand the price realized in each reporting period for copper sales because unrealized mark-to-market values of non-hedge copper derivatives are subject to change each period due to changes in market factors such as market and forward 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 copper production.
The gains and losses on non-hedge derivatives and receivable balances relate to instruments/balances that mature in future periods, at which time the gains and losses will become realized. The amounts of these gains and losses reflect fair values based on market valuation assumptions at the end of each period and do not necessarily represent the amounts that will become realized on maturity. For those reasons, management believes that this measure provides a more accurate reflection of our Company’s past performance and is a better indicator of its expected performance in future periods.
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. The measure is not necessarily indicative of sales as determined under IFRS. Other companies may calculate this measure differently.
Barrick will provide a full reconciliation of this non-GAAP financial measure when the Company reports its quarterly results on
Endnote 3
The sales price for Barrick’s copper production is determined provisionally at the date of sale with the final price determined based on market copper prices at a future date set by the customer, generally one to three months after the initial date of sale. Market prices for copper may fluctuate during this extended settlement period. The prices of Barrick’s copper sales are marked-to-market at the balance sheet date based on the forward copper price for the relevant quotational period. All such mark-to-market adjustments are recorded in copper sale revenues. If the market price for copper declines, the final sale price realized by the Company at settlement may be lower than the provisional sale price initially recognized by the Company, requiring negative adjustments to Barrick’s average realized copper price for the relevant period.
Endnote 4
Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in care and maintenance) divided by ounces sold (both on an attributable basis based on Barrick’s ownership share). Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis based on Barrick’s ownership share).
References to attributable basis means our 100% share of
Endnote 5
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 6
Includes
Cautionary Statements Regarding Preliminary Third Quarter Production, Sales and Costs for 2021, 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, 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) realized price for copper.
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 and the timeline for the execution of definitive agreements to implement the framework agreement, form a new joint venture, and recommence 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; non-renewal of key licenses by governmental authorities including 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
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.
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