First Quarter 2022 Results
All amounts expressed in US dollars
President and chief executive
Since agreement on the repatriation of revenue from Kibali was reached with the
Bristow said as guided earlier, Q1 was a softer quarter, particularly when compared to Q4 of 2021, which included a record-breaking performance from
Highlights of the quarter included the framework agreement with
Also significant was the progress made in securing a new tailings storage facility for the Pueblo Viejo project in the
“Barrick controls what are unquestionably the mining industry’s best gold assets as well as some substantial copper mines. Reko Diq is one of the largest undeveloped copper-gold porphyry deposits in the world, and if the conditions to closing are satisfied, it will be a very significant addition to this portfolio, even before it goes into production, by boosting reserves and resources as the updated feasibility study unfolds,” Bristow said.
“In addition to its size and quality, Barrick’s asset base is distinguished by our continued success in more than replacing the reserves depleted by mining through brownfields exploration. At the same time, we continue to hunt for new Tier One assets across our expanding global footprint. The past quarter again produced promising results from all regions, with significant new potential identified in
Bristow said the Company’s latest annual Sustainability Report highlights its integrated approach to ESG, based on its belief that the challenges of poverty, climate change and biodiversity are intertwined and should be addressed holistically. The report notes that last year Barrick spent
Some
“Sustainability has long been an integral part of the way Barrick does business and our commitment to its effective management is key to our goal of building the world’s most valued gold and copper mining company,” Bristow said.
Key Performance Indicators
Financial and Operating Highlights
Financial Results | Q1 2022 | Q4 2021 | Q1 2021 |
Realized gold price4 ($ per ounce) | 1,876 | 1,793 | 1,777 |
Net earnings ($ millions) | 438 | 726 | 538 |
Adjusted net earnings3 ($ millions) | 463 | 626 | 507 |
Net cash provided by operating activities ($ millions) | 1,004 | 1,387 | 1,302 |
Free cash flow1 ($ millions) | 393 | 718 | 763 |
Net earnings per share ($) | 0.25 | 0.41 | 0.30 |
Adjusted net earnings per share3 ($) | 0.26 | 0.35 | 0.29 |
Attributable capital expenditures5,6 ($ millions) | 478 | 552 | 424 |
Operating Results | Q1 2022 | Q4 2021 | Q1 2021 |
Gold | |||
Production7 (000s of ounces) | 990 | 1,203 | 1,101 |
Cost of sales (Barrick's share)7,8 ($ per ounce) | 1,190 | 1,075 | 1,073 |
Total cash costs7,9 ($ per ounce) | 832 | 715 | 716 |
All-in sustaining costs7,9 ($ per ounce) | 1,164 | 971 | 1,018 |
Copper | |||
Production6 (millions of pounds) | 101 | 126 | 93 |
Cost of sales (Barrick's share)7,8 ($ per pound) | 2.21 | 2.21 | 2.11 |
C1 cash costs7,10 ($ per pound) | 1.81 | 1.63 | 1.60 |
All-in sustaining costs7,10 ($ per pound) | 2.85 | 2.92 | 2.26 |
Best Assets
- First quarter puts Barrick on track to achieve 2022 production targets
- Strong performance from Loulo-Gounkoto on the back of solid throughput, recovery and grade
- Pueblo Viejo new Tailings Storage Facility permitting makes significant progress
- Reko Diq framework agreement signed with
Pakistan paving the way for the next potential Tier One11 asset development - New senior appointments strengthen management team as it expands globally
- Exciting exploration results in all regions with significant new potential highlighted in
Nevada ,Argentina , and theLoulo District
Leader in Sustainability
- 2021 Sustainability Report published highlighting our integrated approach to ESG
- 33% decrease in LTIFR12 quarter on quarter
- Updated GHG Reduction Roadmap outlining our journey to Net Zero by 2050
- Funding the reintroduction of white rhinos to the
Garamba National Park in the DRC
Delivering Value
- Operating cash flow of
$1,004 million and free cash flow1 of$393 million for the quarter - Net earnings per share of
$0.25 and adjusted net earnings per share3 of$0.26 for the quarter - Kibali distributes a further
$0.6 billion in cash during the quarter (100% basis) - Net cash2 of $743 million results in a
$0.20 per share dividend for Q1 2022, inclusive of a$0.10 per share performance dividend14
Q1 2022 Results Presentation
Webinar and Conference Call
President and CEO
Go to the webinar
US and
International (toll), +1 416 915 3239
The Q1 2022 presentation materials will be available on Barrick’s website at www.barrick.com and the webinar will remain on the website for later viewing.
NEW PERFORMANCE DIVIDEND POLICY DOUBLES BARRICK’S QUARTERLY DIVIDEND
Barrick today announced the declaration of a dividend in respect of performance for the first quarter of 2022 that incorporates an enhancement to the base dividend as a result of achieving Level III under the Company’s Performance Dividend Policy.
Barrick’s Board of Directors declared a dividend of
“Our strong operating performance and robust net cash balance has allowed us to provide an enhanced dividend to our shareholders,” says senior executive vice-president and chief financial officer
The
Performance Dividend Level | Threshold Level | Quarterly Base Dividend | Quarterly Performance Dividend | Quarterly Total Dividend |
Level I | Net cash < | per share | per share | per share |
Level II | Net cash > | per share | per share | per share |
Level III | Net cash > | per share | per share | per share |
Level IV | Net cash > | per share | per share | per share |
STRATEGY SECURES BARRICK’S ABILITY TO SUCCEED AMID GLOBAL GEOPOLITICAL DYNAMICS AND IN CHALLENGING JURISDICTIONS
While Barrick’s core strategy — the creation and delivery of real, sustainable value to its stakeholders — is fixed, the actions needed to secure its consistent execution are subject to a rigorous review process.
This starts at the beginning of each year with a week-long strategic planning and team effectiveness review for the group’s top executives, led by president and chief executive
This year’s group strategy session took particular note of the importance of risk management in a global environment which, says Bristow, is probably in greater political, social and economic disarray than any previous period since World War II.
“We’re still dealing with the fall-out of the Covid-19 pandemic, inflation in developed countries is rising to levels not experienced in a generation and in
“Fortunately for Barrick, managing risks in challenging geo-political jurisdictions is one of our core competencies, largely gained in
“It’s our partnership philosophy that has enabled us to achieve this. Mining is a long-term business and we therefore need the ability to benefit our host countries for the length of our investment and beyond. We secure this essential social licence to operate by demonstrating that the value we create is equitably shared with our local stakeholders and that we are a major contributor to the state’s coffers — in short, a welcome and responsible citizen and neighbour.”
Bristow says with mature mining regions offering fewer opportunities for major discoveries, new Tier One assets will inevitably have to be sought in developing countries, where Barrick is already operating successfully.
“Our decision to proceed with the reconstitution of the Reko Diq project in
INVESTING IN THE BEST PEOPLE FOR THE BEST FUTURE
“Getting the optimal results from the industry’s best assets requires people who not only possess skills and drive but are also sufficiently diverse in terms of race, age and gender to lead Barrick into the new world,” explains the Group Human Resources executive,
Thanks to Barrick’s long-established policy of recruiting host country nationals, 96% of its workforce and 78% of its managers are local hires. Its drive for gender diversity in a traditionally male-dominated industry has also started producing results, with women accounting for 24% of new hires during the past quarter and 11% of Barrick’s global workforce.
Similarly, the employee age shift continues and 56% of the workforce are now under the age of 40 and 16% under the age of 30. In the past quarter, 38% of new hires were younger than 30.
Last quarter, the
Preparing the group’s future generation of leaders requires deep succession planning, reflected in a number of key recent changes. With
MANAGING COSTS AMID HIGH INFLATION AND GEOPOLITICAL CONFLICT
Rising inflation, exacerbated by the conflict between
To mitigate inflation and manage supply risks, Barrick is employing a proven multi-pronged strategy, says group commercial and supply chain executive
“Our procurement strategy is built on a thorough understanding of our key cost drivers, commodities and services. The recent groupwide roll-out of SAP has improved the visibility of these factors and allowed real-time decision-making. At the same time, we are identifying technical levers that could drive internal efficiencies,” he says.
“Secondly, we have built strong collaborative relationships with leading global supply chain partners, with a dedicated freight forwarding capacity that spans five continents. They pool their buying power to ensure that we have fixed-price agreements with key suppliers. A big part of the cost of logistics is in the efficiency of the movement of goods from port to destination and we leverage global logistics through our partnership structures to do cross-continent bookings of charters and to consolidate freight from multiple ports.”
Barrick is also cultivating alternative suppliers, particularly in developing countries, as back-up to its main supply chain partners and as a cost-base benchmark. Its long-standing policy of local procurement in host countries, which now stands at 65% of its global procurement, is serving Barrick well as a hedge against inflation, particularly in terms of the cost of logistics, tariffs and inventory.
To manage price and supply volatility, Barrick has built up a strategic inventory of key commodities and Barrick optimizes this inventory and its cost through improved demand and maintenance planning. Where possible it also leverages new projects to renegotiate supply contracts. The proposed 200MW solar power project in
TRUE PARTNERSHIP WILL DELIVER REKO DIQ PROJECT
The groundbreaking partnership agreement between Barrick, the federal government of
Speaking on a recent investor call, Bristow said the project represented a unique mining opportunity, which would be a major addition to Barrick’s Tier One asset base, while also bringing significant economic and social benefits to
The agreement in principle recently reached between the parties provides for the reconstitution and restart of the project, which has been on hold since 2011. It will be operated and owned 50% by Barrick, 25% by Pakistani state-owned enterprises and 25% by the government of
Bristow said that, following the finalization of the underlying agreements, legalization and closing, Barrick would update the 2010 feasibility study.
“Reko Diq’s fundamentals have not changed materially since then. Subject to the updated feasibility study, it is still envisaged as a conventional open pit and milling operation producing a high-quality copper-gold concentrate. We are planning a two-phase construction approach, starting with an approximately 40 million tonne per annum plant, which could be doubled within five years. The staged development will optimize returns, manage upfront capital, lower execution risk and bring forward production and cash flows in the long run. If all goes according to plan, we anticipate first production in five to six years’ time,” he said.
“Offering a unique combination of large scale, low strip and good grade, Reko Diq will be a multi-generational mine, with a life of at least 40 years. The contemplated mine plan is based on four porphyry deposits within our land package and our exploration licence area holds additional deposits with future upside potential.”
Noting that since 2010 there had been game-changing technological advances in renewable energy alternatives, some of which are particularly well-suited to the area, Bristow said a Barrick team was already assessing various solar, wind and battery configurations to maximize the mine’s renewable power generation. This could also deliver a range of economic and operational benefits.
The development of Reko Diq will make
“At Barrick we know that our long-term success depends on sharing the benefits we create equitably with our host governments and communities. That’s why we wanted Balochistan’s share of the venture to be fully funded, 10% by the project and 15% by the government of
KIBALI POWERS AHEAD WHILE BARRICK PLANS FURTHER INVESTMENTS IN DRC
Africa’s largest gold mine, Kibali in the DRC, has made a strong start to 2022 and is on track to equal its 2021 production this year. Last year it again replaced the reserves depleted by mining and its prolific KZ trend of orebodies continues to deliver opportunities for significant open pit and underground growth.
Speaking to media and other stakeholders in
Another section of the Durba road to Watsa has been completed and the resettlement of the Kalimva-Ikamva and Pamao villages has started with the first group of people moving into their new homes. On the health and safety front, there were zero lost time injuries during the quarter, the malaria and HIV programs continued to deliver infection rate reductions and 60% of our employees have been vaccinated against Covid-19, versus a national average of 1%.
In addition to Kibali’s long-standing support for conservation measures in one of DRC’s leading national parks, African Parks and Barrick are looking to reintroduce the white rhino to the
Since the project that became Kibali was acquired in 2009, its probable mineral reserves were doubled to more than 10 million ounces15 of gold in 2010. Construction then started the following year, three hydropower plants were built and the infrastructure — including the road to the Ugandan border — was developed. The mine went into production in 2013 and still today has more than 10 years of mine life ahead, with 2021 total proven and probable mineral reserves of 83Mt at 3.60g/t for 9.6Moz16 of gold, before considering extensions to known orebodies and new discoveries. Since 2009, Kibali has invested almost
“Barrick is continuing to invest in the DRC, not only by developing the many new growth opportunities which are extending Kibali’s life, but also through pursuing greenfields exploration and other opportunities across the country as we search for our next world-class discovery,” Bristow said.
HOLISTIC APPROACH TO ESG WILL MAKE LASTING IMPACT
Barrick has an integrated approach to sustainability to address each of the Environmental, Social and Governance (ESG) components concurrently, says group sustainability executive
“The challenges of fighting poverty, climate change and biodiversity loss are deeply connected, and we have no option but to tackle them together through a holistic and integrated approach to sustainability management, if we are to make a lasting, positive impact on any of them,” he says.
“While excellent management of environmental aspects is critical for sustainable delivery, this only focuses on one side of the issue. That is why this report has a strong focus on the ‘silent S’ in ESG, demonstrating that responsible mining is an enormous lever for delivering social upliftment and development.”
Barrick achieved a ‘B’ grade for a third consecutive year in its industry-first Sustainability Scorecard and recorded significant improvements across most of its key metrics. Highlights for the year include the certification of all operational sites to the ISO 45001 and ISO 14001 standards and the procurement of goods and services worth
Additionally, approximately
Meanwhile, its new Biodiversity Standard, focused on driving positive biodiversity outcomes in critically important areas, has resulted in a significant increase in key species populations in the
“Conserving biodiversity is fundamental to planetary survival, essential to tackling climate change and has an important role to play in the war on poverty. We strive not only to preserve and maintain biodiversity within our permits but to partner with NGOs and other organizations, to protect and restore critical biodiversity in some of the world’s most ecologically sensitive places,” says Beringer.
The latest report is now aligned to the Sustainability Accounting Standards Board’s (SASB) reporting requirements for metals and mining and continues to conform to the Global Reporting Initiative’s ‘GRI Standards: Core option’ as well as the
FUNDING THE RE-INTRODUCTION OF WHITE RHINOS TO THE GARAMBA NATIONAL PARK IN THE DRC
Measurable conservation action focused on threatened species abatement and restoration
Barrick wants to restore the white rhino population at the
Barrick has provided support to the park since 2015, with a view to protecting and restoring its biodiversity and resulting in a notable improvement in the herd size of the endangered Kordofan giraffe, which has grown from 22 individuals in 2012 to 65 last year. Similarly, buffalo populations have also steadily grown with average herd sizes ranging from 20 to nearly 500 individuals. Furthermore, there has not been an instance of elephant poaching since
UPDATED GHG ROADMAP OUTLINES JOURNEY TO 2050
Sun to help power journey to Net Zero
Solar power will account for approximately a third of the total reduction in the GHG emissions that Barrick plans to achieve by 2030, according to the latest GHG Reduction Roadmap published in its 2021 Sustainability Report.
Barrick’s GHG Reduction Roadmap outlines the renewable energy projects that are contributing to or have the potential to help meet its target of reducing total emissions by 30% by 2030 as well as its course to be Net Zero by 2050. Solar power is expected to account for 681kt of the 2,262kt Barrick needs to reduce its total annual GHG emissions to 5,279kt CO2e by 2030 against a 2018 baseline of 7,541kt CO2e.
In addition to the 20MW solar power plant at Loulo (27kt estimated reduction of CO2e per year) completed in 2020, work has begun on an estimated
Other projects being investigated include expansions to the solar plants at Loulo (54kt estimated reduction of CO2e) and Nevada (254kt CO2e), as well as additional solar installations at Jabal Sayid (11kt estimated reduction of CO2e), Kibali (12kt estimated reduction of CO2e) and Pueblo Viejo (69kt estimated reduction of CO2e). Approximately
PUEBLO VIEJO MOVES FORWARD WITH LIFE OF MINE EXTENSION PROJECT
The Dominican Government has completed its strategic review of the location of the new Tailings Storage Facility (TSF) for the Pueblo Viejo mine in the
The government, through their process, have identified a select number of alternatives for further assessment. At the same time, Barrick conducted its own alternatives assessment, completed by a multidisciplinary team of external subject matter experts from various independent consulting companies.
Several sites were initially identified and after various screening phases, which considered environmental, social, and technical factors, potentially feasible sites were identified for further evaluation. The two separate assessments independently identified four alternative sites, of which two sites, located in the
Barrick president and chief executive
The ESIA will identify and implement mechanisms to mitigate potential environmental impacts as well as initiatives to improve the livelihoods of the communities. Barrick is committed to following international standards and will adhere to the Global Industry Standard on Tailings Management in terms of design, construction, operation, and closure of the tailings storage facility.
The new TSF would enable operations at Pueblo Viejo to continue beyond 2040. As a major creator of value for the
In 2021, the Tier One mine paid
“Our goal in the
BARRICK ANNUAL REPORT PUBLISHED
The 2021 Annual Report was published in March
Barrick’s 2021 Annual Report, Annual Information Form and Form 40-F are available on SEDAR (www.sedar.com) and EDGAR (www.sec.gov), respectively. Updated National Instrument 43-101 technical reports for each of the
To access the above-mentioned documents, please visit www.barrick.com. Shareholders may also receive a copy of Barrick’s audited financial statements without charge upon request to Barrick’s Investor Relations Department,
Barrick expands global footprint in hunt for high-quality assets
Barrick is continuing to invest in its future through the development of capital projects that will expand and enhance an operating platform which already holds some of the industry’s best assets, says president and chief executive
Writing in the Company’s 2021 Annual Report Bristow says that, while building on this value foundation, Barrick was also expanding its presence into new prospective areas in its hunt for high-quality assets.
“A specialist
“We are working on a well-defined strategy to grow our business in
Bristow says Barrick has mapped out and is advancing on a clear road to achievable GHG emissions reduction targets and its long-standing commitment to ESG principles informs all its business decisions.
“The Social component of ESG tends to be overshadowed by its Environmental counterpart, but for Barrick it is the socio-economic state of our less-developed host countries that is critically important, and much of our sustainability strategy is directed at ensuring that our host communities are not negatively impacted by the world’s transition to a green economy.”
“Our drive to employ the next generation of mining talent remained steady, with 56% of our workforce now under the age of 40 and 19%[19] under 30. Throughout the period we also continued to increase our gender diversity, and last year 17% of new hires globally were women. Barrick believes in empowering our people to thrive in a decentralized structure with lean regional teams designed for agility and focused on creating value for all our stakeholders,” says Bristow.
Barrick set to deliver substantial future free cash flows
Barrick is built on a foundation of six Tier One gold mines with rolling 10-year plans which secure the Company’s ability to generate substantial free cash flows[1] for the next decade and beyond, says executive chairman
Writing in the Company’s 2021 Annual Report, Thornton notes that in
“As previously announced, after careful consideration of our capital allocation, the board has settled on a new dividend policy comprising a base dividend with an additional performance dividend linked to the net cash on the balance sheet, starting in 2022. We believe this will give our shareholders guidance on future dividend streams14,” he says.
“The board has also approved a
S&P UPGRADES BARRICK TO BBB+ WITH STABLE OUTLOOK
Appendix 1
2022 Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS | ||||
2022 forecast attributable production (000s oz) | 2022 forecast cost of sales8 ($/oz) | 2022 forecast total cash costs9 ($/oz) | 2022 forecast all-in sustaining costs9 ($/oz) | |
950 - 1,030 | 900 - 980 | 730 - 790 | 1,020 - 1,100 | |
Cortez (61.5%)22 | 480 - 530 | 970 - 1,050 | 650 - 710 | 1,010 - 1,090 |
330 - 370 | 1,110 - 1,190 | 770 - 830 | 930 - 1,010 | |
90 - 120 | 2,000 - 2,080 | 720 - 780 | 890 - 970 | |
40 - 50 | 1,420 - 1,500 | 540 - 600 | 540 - 620 | |
1,900 - 2,100 | 1,020 - 1,100 | 710 - 770 | 990 - 1,070 | |
160 - 180 | 1,340 - 1,420 | 1,140 - 1,200 | 1,510 - 1,590 | |
2,100 - 2,300 | 1,050 - 1,130 | 740 - 800 | 1,040 - 1,120 | |
Pueblo Viejo (60%) | 400 - 440 | 1,070 - 1,150 | 670 - 730 | 910 - 990 |
Veladero (50%) | 220 - 240 | 1,210 - 1,290 | 740 - 800 | 1,270 - 1,350 |
Porgera (47.5%)23 | — | — | — | — |
620 - 680 | 1,140 - 1,220 | 700 - 760 | 1,040 - 1,120 | |
Loulo-Gounkoto (80%) | 510 - 560 | 1,070 - 1,150 | 680 - 740 | 940 - 1,020 |
Kibali (45%) | 340 - 380 | 990 - 1,070 | 600 - 660 | 800 - 880 |
North Mara (84%) | 230 - 260 | 820 - 900 | 670 - 730 | 930 - 1,010 |
Tongon (89.7%) | 170 - 200 | 1,700 - 1,780 | 1,220 - 1,280 | 1,400 - 1,480 |
Bulyanhulu (84%) | 180 - 210 | 950 - 1,030 | 630 - 690 | 850 - 930 |
1,450 - 1,600 | 1,070 - 1,150 | 720 - 780 | 950 - 1,030 | |
Total Attributable to Barrick24,25,26 | 4,200 - 4,600 | 1,070 - 1,150 | 730 - 790 | 1,040 - 1,120 |
COPPER PRODUCTION AND COSTS | ||||
2022 forecast attributable production (Mlbs) | 2022 forecast cost of sales8 ($/lb) | 2022 forecast C1 cash costs10 ($/lb) | 2022 forecast all-in sustaining costs10 ($/lb) | |
Lumwana | 250 - 280 | 2.20 - 2.50 | 1.60 - 1.80 | 3.10 - 3.40 |
Zaldívar (50%) | 100 - 120 | 2.70 - 3.00 | 2.00 - 2.20 | 2.50 - 2.80 |
70 - 80 | 1.40 - 1.70 | 1.30 - 1.50 | 1.30 - 1.60 | |
Total Attributable to Barrick25 | 420 - 470 | 2.20 - 2.50 | 1.70 - 1.90 | 2.70 - 3.00 |
ATTRIBUTABLE CAPITAL EXPENDITURES | ||||
($ millions) | ||||
Attributable minesite sustaining6 | 1,350 - 1,550 | |||
Attributable project6 | 550 - 650 | |||
Total attributable capital expenditures7 | 1,900 - 2,200 |
2022 OUTLOOK ASSUMPTIONS AND ECONOMIC SENSITIVITY ANALYSIS
2022 Guidance Assumption | Hypothetical Change | Impact on EBITDA27 (millions) | Impact on TCC and AISC9,10 | |
Gold price sensitivity | +/- | +/- | +/- | |
Copper price sensitivity | +/- | +/- | +/- |
Appendix 2
Production and Cost Summary - Gold
For the three months ended | |||||||||
% Change | % Change | ||||||||
Gold produced (000s oz attributable basis) | 459 | 604 | (24)% | 485 | (5)% | ||||
Gold produced (000s oz 100% basis) | 747 | 981 | (24)% | 789 | (5)% | ||||
Cost of sales ($/oz) | 1,169 | 1,023 | 14% | 1,047 | 12% | ||||
Total cash costs ($/oz)b | 820 | 687 | 19% | 686 | 20% | ||||
All-in sustaining costs ($/oz)b | 1,118 | 893 | 25% | 932 | 20% | ||||
Gold produced (000s oz attributable basis) | 229 | 295 | (22)% | 229 | 0% | ||||
Gold produced (000s oz 100% basis) | 373 | 479 | (22)% | 373 | 0% | ||||
Cost of sales ($/oz) | 1,015 | 899 | 13% | 950 | 7% | ||||
Total cash costs ($/oz)b | 829 | 728 | 14% | 766 | 8% | ||||
All-in sustaining costs ($/oz)b | 1,139 | 950 | 20% | 1,045 | 9% | ||||
Cortez (61.5%)d | |||||||||
Gold produced (000s oz attributable basis) | 115 | 169 | (32)% | 100 | 15% | ||||
Gold produced (000s oz 100% basis) | 187 | 275 | (32)% | 163 | 15% | ||||
Cost of sales ($/oz) | 1,113 | 984 | 13% | 1,251 | (11)% | ||||
Total cash costs ($/oz)b | 784 | 657 | 19% | 860 | (9)% | ||||
All-in sustaining costs ($/oz)b | 1,150 | 853 | 35% | 1,203 | (4)% | ||||
Gold produced (000s oz attributable basis) | 67 | 82 | (18)% | 92 | (27)% | ||||
Gold produced (000s oz 100% basis) | 109 | 133 | (18)% | 149 | (27)% | ||||
Cost of sales ($/oz) | 1,436 | 1,194 | 20% | 1,007 | 43% | ||||
Total cash costs ($/oz)b | 1,030 | 819 | 26% | 647 | 59% | ||||
All-in sustaining costs ($/oz)b | 1,281 | 996 | 29% | 741 | 73% | ||||
Gold produced (000s oz attributable basis) | 23 | 25 | (8)% | 25 | (8)% | ||||
Gold produced (000s oz 100% basis) | 37 | 41 | (8)% | 41 | (8)% | ||||
Cost of sales ($/oz) | 2,253 | 2,047 | 10% | 2,051 | 10% | ||||
Total cash costs ($/oz)b | 835 | 443 | 88% | 346 | 141% | ||||
All-in sustaining costs ($/oz)b | 1,027 | 614 | 67% | 530 | 94% | ||||
Gold produced (000s oz attributable basis) | 25 | 33 | (24)% | 39 | (36)% | ||||
Gold produced (000s oz 100% basis) | 41 | 53 | (24)% | 63 | (36)% | ||||
Cost of sales ($/oz) | 1,093 | 999 | 9% | 511 | 114% | ||||
Total cash costs ($/oz)b | 342 | 325 | 5% | 79 | 333% | ||||
All-in sustaining costs ($/oz)b | 366 | 384 | (5)% | 156 | 135% | ||||
Pueblo Viejo (60%) | |||||||||
Gold produced (000s oz attributable basis) | 104 | 107 | (3)% | 137 | (24)% | ||||
Gold produced (000s oz 100% basis) | 174 | 178 | (3)% | 229 | (24)% | ||||
Cost of sales ($/oz) | 1,077 | 987 | 9% | 816 | 32% | ||||
Total cash costs ($/oz)b | 682 | 612 | 11% | 507 | 35% | ||||
All-in sustaining costs ($/oz)b | 948 | 858 | 10% | 689 | 38% | ||||
Loulo-Gounkoto (80%) |
Gold produced (000s oz attributable basis) | 138 | 126 | 10% | 154 | (10)% | |||
Gold produced (000s oz 100% basis) | 172 | 158 | 10% | 193 | (10)% | |||
Cost of sales ($/oz) | 1,088 | 1,139 | (4)% | 974 | 12% | |||
Total cash costs ($/oz)b | 721 | 685 | 5% | 608 | 19% | |||
All-in sustaining costs ($/oz)b | 982 | 822 | 19% | 920 | 7% | |||
Kibali (45%) | ||||||||
Gold produced (000s oz attributable basis) | 76 | 94 | (19)% | 86 | (12)% | |||
Gold produced (000s oz 100% basis) | 168 | 209 | (19)% | 192 | (12)% | |||
Cost of sales ($/oz) | 1,137 | 979 | 16% | 1,065 | 7% | |||
Total cash costs ($/oz)b | 744 | 582 | 28% | 691 | 8% | |||
All-in sustaining costs ($/oz)b | 996 | 776 | 28% | 856 | 16% | |||
Veladero (50%) | ||||||||
Gold produced (000s oz attributable basis) | 46 | 61 | (25)% | 32 | 44% | |||
Gold produced (000s oz 100% basis) | 92 | 122 | (25)% | 64 | 44% | |||
Cost of sales ($/oz) | 1,348 | 1,279 | 5% | 1,151 | 17% | |||
Total cash costs ($/oz)b | 847 | 834 | 2% | 736 | 15% | |||
All-in sustaining costs ($/oz)b | 1,588 | 1,113 | 43% | 2,104 | (25) % | |||
Porgera (47.5%)e | ||||||||
Gold produced (000s oz attributable basis) | — | — | —% | — | —% | |||
Gold produced (000s oz 100% basis) | — | — | —% | — | —% | |||
Cost of sales ($/oz) | — | — | —% | — | —% | |||
Total cash costs ($/oz)b | — | — | —% | — | —% | |||
All-in sustaining costs ($/oz)b | — | — | —% | — | —% | |||
Tongon (89.7%) | ||||||||
Gold produced (000s oz attributable basis) | 35 | 50 | (30)% | 48 | (27)% | |||
Gold produced (000s oz 100% basis) | 39 | 56 | (30)% | 54 | (27)% | |||
Cost of sales ($/oz) | 2,036 | 1,494 | 36% | 1,510 | 35% | |||
Total cash costs ($/oz)b | 1,667 | 1,205 | 38% | 995 | 68% | |||
All-in sustaining costs ($/oz)b | 1,803 | 1,301 | 39% | 1,062 | 70% | |||
Gold produced (000s oz) | 31 | 35 | (11)% | 47 | (34)% | |||
Cost of sales ($/oz) | 1,727 | 1,770 | (2)% | 1,610 | 7% | |||
Total cash costs ($/oz)b | 1,503 | 1,481 | 1% | 1,324 | 14% | |||
All-in sustaining costs ($/oz)b | 1,982 | 1,938 | 2% | 1,840 | 8% | |||
North Mara (84%) | ||||||||
Gold produced (000s oz attributable basis) | 56 | 69 | (19)% | 62 | (10)% | |||
Gold produced (000s oz 100% basis) | 66 | 82 | (19)% | 74 | (10)% | |||
Cost of sales ($/oz) | 852 | 858 | (1)% | 1,061 | (20)% | |||
Total cash costs ($/oz)b | 709 | 679 | 4% | 832 | (15)% | |||
All-in sustaining costs ($/oz)b | 874 | 1,033 | (15)% | 1,038 | (16)% | |||
Buzwagi (84%)f |
Gold produced (000s oz attributable basis) | 17 | ||||
Gold produced (000s oz 100% basis) | 20 | ||||
Cost of sales ($/oz) | 1,486 | ||||
Total cash costs ($/oz)b | 1,450 | ||||
All-in sustaining costs ($/oz)b | 1,467 | ||||
Bulyanhulu (84%) | |||||
Gold produced (000s oz attributable basis) | 45 | 57 | (21)% | 33 | 36% |
Gold produced (000s oz 100% basis) | 53 | 68 | (21)% | 39 | 36% |
Cost of sales ($/oz) | 1,216 | 956 | 27% | 1,211 | 0% |
Total cash costs ($/oz)b | 847 | 567 | 49% | 865 | (2)% |
All-in sustaining costs ($/oz)b | 984 | 897 | 10% | 957 | 3% |
Total Attributable to Barrickg | |||||
Gold produced (000s oz) | 990 | 1,203 | (18)% | 1,101 | (10)% |
Cost of sales ($/oz)h | 1,190 | 1,075 | 11% | 1,073 | 11% |
Total cash costs ($/oz)b | 832 | 715 | 16% | 716 | 16% |
All-in sustaining costs ($/oz)b | 1,164 | 971 | 20% | 1,018 | 14% |
- These results represent our 61.5% interest in
Carlin (including NGM's 60% interest in South Arturo up untilMay 30, 2021 and 100% interest thereafter, reflecting the terms of the Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not already own in exchange for the Lone Tree andBuffalo Mountain properties and infrastructure, which closed onOctober 14, 2021 ), Cortez,Turquoise Ridge ,Phoenix andLong Canyon . - Further information on these non-GAAP financial performance measures, including detailed reconciliations, is included in the endnotes to this press release.
- On
September 7, 2021 , NGM announced it had entered into an Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not already own in exchange for the Lone Tree andBuffalo Mountain properties and infrastructure. Operating results within our 61.5% interest inCarlin includes NGM's 60% interest in South Arturo up untilMay 30, 2021 , and 100% interest thereafter, and operating results within our 61.5% interest inPhoenix includesLone Tree up untilMay 31, 2021 , reflecting the terms of the Exchange Agreement which closed onOctober 14, 2021 . - Includes Goldrush.
- As Porgera was placed on care and maintenance on
April 25, 2020 , no operating data or per ounce data is provided. - With the end of mining at Buzwagi in the third quarter of 2021, as previously disclosed, we have ceased to include production or non-GAAP cost metrics for Buzwagi from
October 1, 2021 onwards. - Excludes Pierina, Golden Sunlight, Lagunas Norte up until its divestiture in
June 2021 , and Buzwagi starting in the fourth quarter of 2021. Some of these assets are producing incidental ounces while in closure or care and maintenance. - Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using Barrick's ownership share).
Production and Cost Summary - Copper
For the three months ended | |||||
% Change | % Change | ||||
Lumwana | |||||
Copper production (Mlbs) | 57 | 78 | (27)% | 51 | 12% |
Cost of sales ($/lb) | 2.20 | 2.16 | 2% | 1.97 | 12% |
C1 cash costs ($/lb)a | 1.86 | 1.54 | 21% | 1.48 | 26% |
All-in sustaining costs ($/lb)a | 3.16 | 3.29 | (4)% | 2.37 | 33% |
Zaldívar (50%) | |||||
Copper production (Mlbs attributable basis) | 25 | 27 | (7)% | 24 | 4% |
Copper production (Mlbs 100% basis) | 51 | 54 | (7)% | 48 | 4% |
Cost of sales ($/lb) | 2.85 | 3.14 | (9)% | 3.03 | (6)% |
C1 cash costs ($/lb)a | 2.15 | 2.35 | (9)% | 2.25 | (4)% |
All-in sustaining costs ($/lb)a | 2.64 | 3.42 | (23)% | 2.47 | 7% |
Copper production (Mlbs attributable basis) | 19 | 21 | (10)% | 18 | 6% |
Copper production (Mlbs 100% basis) | 38 | 42 | (10)% | 36 | 6% |
Cost of sales ($/lb) | 1.30 | 1.36 | (4)% | 1.21 | 7% |
C1 cash costs ($/lb)a | 1.10 | 1.11 | (1)% | 1.06 | 4% |
All-in sustaining costs ($/lb)a | 1.17 | 1.27 | (8)% | 1.22 | (4)% |
Total Attributable to Barrick | |||||
Copper production (Mlbs attributable basis) | 101 | 126 | (20)% | 93 | 9% |
Cost of sales ($/lb)b | 2.21 | 2.21 | 0% | 2.11 | 5% |
C1 cash costs ($/lb)a | 1.81 | 1.63 | 11% | 1.60 | 13% |
All-in sustaining costs ($/lb)a | 2.85 | 2.92 | (2)% | 2.26 | 26% |
- Further information on these non-GAAP financial performance measures, including detailed reconciliations, is included in the endnotes to this press release.
- Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick's ownership share).
Appendix 3
Financial and Operating Highlights
For the three months ended | |||||||||||
% Change | % Change | ||||||||||
Financial Results ($ millions) | |||||||||||
Revenues | 2,853 | 3,310 | (14 | )% | 2,956 | (3 | )% | ||||
Cost of sales | 1,739 | 1,905 | (9 | )% | 1,712 | 2 | % | ||||
Net earningsa | 438 | 726 | (40 | )% | 538 | (19 | )% | ||||
Adjusted net earningsb | 463 | 626 | (26 | )% | 507 | (9 | )% | ||||
Adjusted EBITDAb | 1,645 | 2,070 | (21 | )% | 1,800 | (9 | )% | ||||
Adjusted EBITDA marginc | 58 | % | 63 | % | (8 | )% | 61 | % | (5 | )% | |
Minesite sustaining capital expendituresb,d | 420 | 431 | (3 | )% | 405 | 4 | % | ||||
Project capital expendituresb,d | 186 | 234 | (21 | )% | 131 | 42 | % | ||||
Total consolidated capital expendituresd,e | 611 | 669 | (9 | )% | 539 | 13 | % | ||||
Net cash provided by operating activities | 1,004 | 1,387 | (28 | )% | 1,302 | (23 | )% | ||||
Net cash provided by operating activities marginf | 35 | % | 42 | % | (17 | )% | 44 | % | (20 | )% | |
Free cash flowb | 393 | 718 | (45 | )% | 763 | (48 | )% | ||||
Net earnings per share (basic and diluted) | 0.25 | 0.41 | (39 | )% | 0.30 | (17 | )% | ||||
Adjusted net earnings (basic)b per share | 0.26 | 0.35 | (26 | )% | 0.29 | (10 | )% | ||||
Weighted average diluted common shares (millions of shares) | 1,779 | 1,779 | 0 | % | 1,778 | 0 | % | ||||
Operating Results | |||||||||||
Gold production (thousands of ounces)g | 990 | 1,203 | (18 | )% | 1,101 | (10 | )% | ||||
Gold sold (thousands of ounces)g | 993 | 1,234 | (20 | )% | 1,093 | (9 | )% | ||||
Market gold price ($/oz) | 1,877 | 1,795 | 5 | % | 1,794 | 5 | % | ||||
Realized gold priceb,g ($/oz) | 1,876 | 1,793 | 5 | % | 1,777 | 6 | % | ||||
Gold cost of sales (Barrick’s share)g,h ($/oz) | 1,190 | 1,075 | 11 | % | 1,073 | 11 | % | ||||
Gold total cash costsb,g ($/oz) | 832 | 715 | 16 | % | 716 | 16 | % | ||||
Gold all-in sustaining costsb,g ($/oz) | 1,164 | 971 | 20 | % | 1,018 | 14 | % | ||||
Copper production (millions of pounds)g | 101 | 126 | (20 | )% | 93 | 9 | % | ||||
Copper sold (millions of pounds)g | 113 | 113 | 0 | % | 113 | 0 | % | ||||
Market copper price ($/lb) | 4.53 | 4.40 | 3 | % | 3.86 | 17 | % | ||||
Realized copper priceb,g ($/lb) | 4.68 | 4.63 | 1 | % | 4.12 | 14 | % | ||||
Copper cost of sales (Barrick’s share)g,i ($/lb) | 2.21 | 2.21 | 0 | % | 2.11 | 5 | % | ||||
Copper C1 cash costsb,g ($/lb) | 1.81 | 1.63 | 11 | % | 1.60 | 13 | % | ||||
Copper all-in sustaining costsb,g ($/lb) | 2.85 | 2.92 | (2 | )% | 2.26 | 26 | % | ||||
As at | As at | % Change | As at | % Change | |||||||
Financial Position ($ millions) | |||||||||||
Debt (current and long-term) | 5,144 | 5,150 | 0 | % | 5,153 | 0 | % | ||||
Cash and equivalents | 5,887 | 5,280 | 11 | % | 5,672 | 4 | % | ||||
Debt, net of cash | (743 | ) | (130 | ) | 472 | % | (519 | ) | 43 | % |
- Net earnings represents net earnings attributable to the equity holders of the Company.
- Further information on these non-GAAP financial performance measures, including detailed reconciliations, is included in the endnotes to this press release.
- 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 of
$5 million for the three month period endedMarch 31, 2022 (December 31, 2021 :$4 million andMarch 31, 2021 :$3 million ). - Represents net cash provided by operating activities divided by revenue.
- On an attributable basis.
- Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using 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 using Barrick's ownership share).
Consolidated Statements of Income
(in millions of | Three months ended | |||||
2022 | 2021 | |||||
Revenue (notes 5 and 6) | $2,853 | |||||
Costs and expenses (income) | ||||||
Cost of sales (notes 5 and 7) | 1,739 | 1,712 | ||||
General and administrative expenses | 54 | 38 | ||||
Exploration, evaluation and project expenses | 67 | 61 | ||||
Impairment (reversals) charges (notes 9b and 13) | 2 | (89 | ) | |||
Loss on currency translation | 3 | 4 | ||||
Closed mine rehabilitation | 3 | 23 | ||||
Income from equity investees (note 12) | (99 | ) | (103 | ) | ||
Other (income) expense (note 9a) | (11 | ) | 19 | |||
Income before finance costs and income taxes | $1,095 | |||||
Finance costs, net | (88 | ) | (87 | ) | ||
Income before income taxes | $1,007 | |||||
Income tax expense (note 10) | (301 | ) | (374 | ) | ||
Net income | $706 | |||||
Attributable to: | ||||||
Equity holders of | $438 | |||||
Non-controlling interests (note 16) | $268 | |||||
Earnings per share data attributable to the equity holders of | ||||||
Net income | ||||||
Basic | $0.25 | |||||
Diluted | $0.25 |
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
Consolidated Statements of Comprehensive Income
(in millions of | Three months ended | |||||
2022 | 2021 | |||||
Net income | $706 | |||||
Other comprehensive income (loss), net of taxes | ||||||
Items that will not be reclassified to profit or loss: | ||||||
Net change on equity investments, net of tax ( | 58 | (47 | ) | |||
Total other comprehensive income (loss) | 58 | (47 | ) | |||
Total comprehensive income | $764 | |||||
Attributable to: | ||||||
Equity holders of | $496 | |||||
Non-controlling interests | $268 |
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
Consolidated Statements of Cash Flow
(in millions of | Three months ended | |||||
2022 | 2021 | |||||
OPERATING ACTIVITIES | ||||||
Net income | $706 | |||||
Adjustments for the following items: | ||||||
Depreciation | 460 | 507 | ||||
Finance costs, net | 98 | 94 | ||||
Impairment (reversals) charges (notes 9b and 13) | 2 | (89 | ) | |||
Income tax expense (note 10) | 301 | 374 | ||||
Income from equity investees (note 12) | (99 | ) | (103 | ) | ||
Gain on sale of non-current assets | (2 | ) | (3 | ) | ||
Loss on currency translation | 3 | 4 | ||||
Change in working capital (note 11) | (131 | ) | (58 | ) | ||
Other operating activities (note 11) | (77 | ) | (34 | ) | ||
Operating cash flows before interest and income taxes | 1,261 | 1,522 | ||||
Interest paid | (23 | ) | (22 | ) | ||
Income taxes paid1 | (234 | ) | (198 | ) | ||
Net cash provided by operating activities | 1,004 | 1,302 | ||||
INVESTING ACTIVITIES | ||||||
Property, plant and equipment | ||||||
Capital expenditures (note 5) | (611 | ) | (539 | ) | ||
Sales proceeds | 1 | 4 | ||||
Investment sales | 260 | — | ||||
Dividends received from equity method investments (note 12) | 359 | 126 | ||||
Shareholder loan repayments from equity method investments (note 12) | — | 1 | ||||
Net cash provided by (used in) investing activities | 9 | (408 | ) | |||
FINANCING ACTIVITIES | ||||||
Lease repayments | (6 | ) | (6 | ) | ||
Debt repayments | — | (7 | ) | |||
Dividends | (178 | ) | (158 | ) | ||
Funding from non-controlling interests (note 16) | — | 6 | ||||
Disbursements to non-controlling interests (note 16) | (267 | ) | (265 | ) | ||
Pueblo Viejo JV partner shareholder loan | 45 | 21 | ||||
Net cash used in financing activities | (406 | ) | (409 | ) | ||
Effect of exchange rate changes on cash and equivalents | — | (1 | ) | |||
Net increase in cash and equivalents | 607 | 484 | ||||
Cash and equivalents at the beginning of period | 5,280 | 5,188 | ||||
Cash and equivalents at the end of period | $5,887 |
1. Income taxes paid excludes $26 million (2021: $36 million) of income taxes payable that were settled against offsetting VAT receivables.
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
Consolidated Balance Sheets
As at | As at | |||||
(in millions of | 2022 | 2021 | ||||
ASSETS | ||||||
Current assets | ||||||
Cash and equivalents | $5,887 | |||||
Accounts receivable | 640 | 623 | ||||
Inventories | 1,766 | 1,734 | ||||
Other current assets | 722 | 612 | ||||
Total current assets | $9,015 | |||||
Non-current assets | ||||||
Equity in investees (note 12) | 4,334 | 4,594 | ||||
Property, plant and equipment | 25,153 | 24,954 | ||||
4,769 | 4,769 | |||||
Intangible assets | 149 | 150 | ||||
Deferred income tax assets | 15 | 29 | ||||
Non-current portion of inventory | 2,639 | 2,636 | ||||
Other assets | 1,232 | 1,509 | ||||
Total assets | $47,306 | |||||
LIABILITIES AND EQUITY | ||||||
Current liabilities | ||||||
Accounts payable | $1,525 | |||||
Debt | 14 | 15 | ||||
Current income tax liabilities | 342 | 285 | ||||
Other current liabilities | 366 | 338 | ||||
Total current liabilities | $2,247 | |||||
Non-current liabilities | ||||||
Debt | 5,130 | 5,135 | ||||
Provisions | 2,738 | 2,768 | ||||
Deferred income tax liabilities | 3,308 | 3,293 | ||||
Other liabilities | 1,257 | 1,301 | ||||
Total liabilities | $14,680 | |||||
Equity | ||||||
Capital stock (note 15) | $28,497 | |||||
Deficit | (6,306 | ) | (6,566 | ) | ||
Accumulated other comprehensive income (loss) | 35 | (23 | ) | |||
Other | 1,949 | 1,949 | ||||
Total equity attributable to | $24,175 | |||||
Non-controlling interests (note 16) | 8,451 | 8,450 | ||||
Total equity | $32,626 | |||||
Contingencies and commitments (notes 5 and 17) | ||||||
Total liabilities and equity | $47,306 |
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2022 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 | 1,779,331 | $28,497 | ($6,566 | ) | ($23 | ) | $1,949 | $23,857 | $8,450 | $32,307 | |||||||||||||
Net income | — | — | 438 | — | — | 438 | 268 | 706 | |||||||||||||||
Total other comprehensive income (loss) | — | — | — | 58 | — | 58 | — | 58 | |||||||||||||||
Total comprehensive income | — | — | 438 | 58 | — | 496 | 268 | 764 | |||||||||||||||
Transactions with owners | |||||||||||||||||||||||
Dividends | — | — | (178 | ) | — | — | (178 | ) | — | (178 | ) | ||||||||||||
Disbursements to non-controlling interests (note 16) | — | — | — | — | — | — | (267 | ) | (267 | ) | |||||||||||||
Dividend reinvestment plan (note 15) | 25 | — | — | — | — | — | — | — | |||||||||||||||
Total transactions with owners | 25 | — | (178 | ) | — | — | (178 | ) | (267 | ) | (445 | ) | |||||||||||
At | 1,779,356 | $28,497 | ($6,306 | ) | $35 | $1,949 | $24,175 | $8,451 | $32,626 | ||||||||||||||
At | 1,778,190 | $29,236 | ($7,949 | ) | $14 | $2,040 | $23,341 | $8,369 | $31,710 | ||||||||||||||
Net income | — | — | 538 | — | — | 538 | 292 | 830 | |||||||||||||||
Total other comprehensive income (loss) | — | — | — | (47 | ) | — | (47 | ) | — | (47 | ) | ||||||||||||
Total comprehensive income (loss) | — | — | 538 | (47 | ) | — | 491 | 292 | 783 | ||||||||||||||
Transactions with owners | |||||||||||||||||||||||
Dividends | — | — | (158 | ) | — | — | (158 | ) | — | (158 | ) | ||||||||||||
Issued on exercise of stock options | 50 | — | — | — | — | — | — | — | |||||||||||||||
Funding from non-controlling interests | — | — | — | — | — | — | 6 | 6 | |||||||||||||||
Disbursements to non-controlling interests | — | — | — | — | — | — | (262 | ) | (262 | ) | |||||||||||||
Dividend reinvestment plan | 72 | 2 | (2 | ) | — | — | — | — | — | ||||||||||||||
Share-based payments | 59 | — | — | — | — | — | — | — | |||||||||||||||
Total transactions with owners | 181 | 2 | (160 | ) | — | — | (158 | ) | (256 | ) | (414 | ) | |||||||||||
At | 1,778,371 | $29,238 | ($7,571 | ) | ($33 | ) | $2,040 | $23,674 | $8,405 | $32,079 |
1. Includes cumulative translation losses at
2. Includes additional paid-in capital as at
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
Technical Information
The scientific and technical information contained in this press release has been reviewed and approved by
All mineral reserve and mineral resource estimates are estimated in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Unless otherwise noted, such mineral reserve and mineral resource estimates are as of
Endnotes
Endnote 1
“Free cash flow” is a non-GAAP financial performance measure that deducts capital expenditures from net cash provided by operating activities. Management believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Free cash flow is intended to provide additional information only and does not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently. Further details on this non-GAAP financial performance measure are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
($ millions) | For the three months ended | |||||
Net cash provided by operating activities | 1,004 | 1,387 | 1,302 | |||
Capital expenditures | (611 | ) | (669 | ) | (539 | ) |
Free cash flow | 393 | 718 | 763 |
Endnote 2
Calculated as cash and equivalents (
Endnote 3
“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. Management 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. Management 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 definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently. Further details on these non-GAAP financial performance 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 | |||||
Net earnings attributable to equity holders of the Company | 438 | 726 | 538 | |||
Impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and investmentsa | 2 | 14 | (89 | ) | ||
Acquisition/disposition (gains) lossesb | (2 | ) | (198 | ) | (3 | ) |
Loss on currency translation | 3 | 13 | 4 | |||
Significant tax adjustmentsc | 17 | (29 | ) | 47 | ||
Other expense adjustmentsd | 13 | 36 | 11 | |||
Tax effect and non-controlling intereste | (8 | ) | 64 | (1 | ) | |
Adjusted net earnings | 463 | 626 | 507 | |||
Net earnings per sharef | 0.25 | 0.41 | 0.30 | |||
Adjusted net earnings per sharef | 0.26 | 0.35 | 0.29 |
- For the three month period ended
March 31, 2022 , we recorded no significant impairment charges or reversals. Net impairment reversals for the three months endedMarch 31, 2021 mainly relate to non-current asset reversals at Lagunas Norte. - There were no significant acquisition/disposition gains or losses for the three months ended
March 31, 2022 . Acquisition/disposition gains for the three month period endedDecember 31, 2021 primarily relate to the gain on the divestiture ofLone Tree . - For the three month period ended
December 31, 2021 , significant tax adjustments mainly relate to the impacts of the South Arturo asset exchange, foreign currency translation gains and losses on tax balances, and the recognition/derecognition of our deferred taxes in various jurisdictions. For the three months endedMarch 31, 2021 , significant tax adjustments primarily relate to the remeasurement of deferred tax balances for changes in foreign currency rates and the recognition/derecognition of our deferred taxes in various jurisdictions. - Other expense adjustments for all periods mainly relate to care and maintenance expenses at Porgera. The three month period ended
December 31, 2021 was further impacted by a$25 million litigation settlement. - Tax effect and non-controlling interest for the three month period ended
March 31, 2022 primarily relates to other expense adjustments, while tax effect and non-controlling interest for the three month period endedDecember 31, 2021 mainly relates to acquisition/disposition gains. - Calculated using weighted average number of shares outstanding under the basic method of earnings per share.
Endnote 4
“Realized price” is a non-GAAP financial performance 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; 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. Other companies may calculate this measure differently. Further details on these non-GAAP financial performance 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 | |||||||
For the three months ended | |||||||||
Sales | 2,511 | 2,977 | 2,641 | 287 | 263 | 256 | |||
Sales applicable to non-controlling interests | (787 | ) | (931 | ) | (814 | ) | 0 | 0 | 0 |
Sales applicable to equity method investmentsa,b | 136 | 172 | 154 | 188 | 222 | 170 | |||
Sales applicable to sites in closure or care and maintenancec | 0 | (8 | ) | (41 | ) | 0 | 0 | 0 | |
Treatment and refinement charges | 3 | 1 | 0 | 51 | 39 | 41 | |||
Otherd | 0 | 2 | 0 | 0 | 0 | 0 | |||
Revenues – as adjusted | 1,863 | 2,213 | 1,940 | 526 | 524 | 467 | |||
Ounces/pounds sold (000s ounces/millions pounds)c | 993 | 1,234 | 1,093 | 113 | 113 | 113 | |||
Realized gold/copper price per ounce/pounde | 1,876 | 1,793 | 1,777 | 4.68 | 4.63 | 4.12 |
- Represents sales of
$137 million for the three month period endedMarch 31, 2022 (December 31, 2021 :$172 million andMarch 31, 2021 :$154 million ) applicable to our 45% equity method investment in Kibali for gold. Represents sales of$118 million for the three months endedMarch 31, 2022 (December 31, 2021 :$119 million andMarch 31, 2021 :$109 million ) applicable to our 50% equity method investment in Zaldívar and$75 million (December 31, 2021 :$111 million andMarch 31, 2021 :$65 million ) applicable to our 50% equity method investment inJabal Sayid for copper. - Sales applicable to equity method investments are net of treatment and refinement charges.
- Excludes Pierina, Golden Sunlight, Lagunas Norte up until its divestiture in
June 2021 , and Buzwagi starting in the fourth quarter of 2021. Some of these assets are producing incidental ounces while in closure or care and maintenance. - Represents a cumulative catch-up adjustment to revenue relating to our streaming arrangements. Refer to note 2e of the 2021 Annual Financial Statements for more information.
- Realized price per ounce/pound may not calculate based on amounts presented in this table due to rounding.
Endnote 5
Capital expenditures are classified into minesite sustaining capital expenditures or project capital expenditures depending on the nature of the expenditure. Minesite sustaining capital expenditures is the capital spending required to support current production levels. Project capital expenditures represent the capital spending at new projects and major, discrete projects at existing operations intended to increase net present value through higher production or longer mine life. Management believes this to be a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of all-in sustaining costs per ounce and all-in costs per ounce. Classifying capital expenditures is intended to provide additional information only and does not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently. The following table reconciles these non-GAAP financial performance measures to the most directly comparable IFRS measure.
Reconciliation of the Classification of Capital Expenditures
For the three months ended | |||
($ millions) | |||
Minesite sustaining capital expenditures | 420 | 431 | 405 |
Project capital expenditures | 186 | 234 | 131 |
Capitalized interest | 5 | 4 | 3 |
Total consolidated capital expenditures | 611 | 669 | 539 |
Endnote 6
Attributable capital expenditures are presented on the same basis as guidance, which 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 and Bulyanhulu and our 50% share of Zaldívar and
Endnote 7
On an attributable basis.
Endnote 8
Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using 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 using Barrick’s ownership share).
Endnote 9
“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 includes minesite 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. "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 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. “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 standardized definitions under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Although a standardized definition of all-in sustaining costs was published 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 | ||||||
Footnote | |||||||
Cost of sales applicable to gold production | 1,582 | 1,771 | 1,571 | ||||
Depreciation | (419 | ) | (512 | ) | (454 | ) | |
Cash cost of sales applicable to equity method investments | 51 | 52 | 59 | ||||
By-product credits | (55 | ) | (70 | ) | (59 | ) | |
Realized (gains) losses on hedge and non-hedge derivatives | 0 | 0 | 0 | ||||
Non-recurring items | a | 0 | 0 | 0 | |||
Other | b | (1 | ) | (7 | ) | (33 | ) |
Non-controlling interests | c | (331 | ) | (351 | ) | (302 | ) |
Total cash costs | 827 | 883 | 782 | ||||
General & administrative costs | 54 | 39 | 38 | ||||
Minesite exploration and evaluation costs | d | 10 | 12 | 16 | |||
Minesite sustaining capital expenditures | e | 420 | 431 | 405 | |||
Sustaining leases | 9 | 13 | 13 | ||||
Rehabilitation - accretion and amortization (operating sites) | f | 11 | 12 | 11 | |||
Non-controlling interest, copper operations and other | g | (176 | ) | (191 | ) | (154 | ) |
All-in sustaining costs | 1,155 | 1,199 | 1,111 | ||||
Global exploration and evaluation and project expense | d | 57 | 70 | 45 | |||
Community relations costs not related to current operations | 0 | 0 | 0 | ||||
Project capital expenditures | e | 186 | 234 | 131 | |||
Non-sustaining leases | 0 | 0 | 0 | ||||
Rehabilitation - accretion and amortization (non-operating sites) | f | 3 | 2 | 3 | |||
Non-controlling interest and copper operations and other | g | (58 | ) | (71 | ) | (42 | ) |
All-in costs | 1,343 | 1,434 | 1,248 | ||||
Ounces sold - equity basis (000s ounces) | h | 993 | 1,234 | 1,093 | |||
Cost of sales per ounce | i,j | 1,190 | 1,075 | 1,073 | |||
Total cash costs per ounce | j | 832 | 715 | 716 | |||
Total cash costs per ounce (on a co-product basis) | j,k | 869 | 753 | 746 | |||
All-in sustaining costs per ounce | j | 1,164 | 971 | 1,018 | |||
All-in sustaining costs per ounce (on a co-product basis) | j,k | 1,201 | 1,009 | 1,048 | |||
All-in costs per ounce | j | 1,353 | 1,162 | 1,144 | |||
All-in costs per ounce (on a co-product basis) | j,k | 1,390 | 1,200 | 1,174 |
a. | Non-recurring items These costs are not indicative of our cost of production and have been excluded from the calculation of total cash costs. |
b. | Other Other adjustments for the three month period ended |
c. | Non-controlling interests Non-controlling interests include non-controlling interests related to gold production of |
d. | 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 70 of the Q1 2022 MD&A. |
e. | 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 capital spending at new projects and major, distinct projects at existing operations intended to increase net present value through higher production or longer mine life. Significant projects in the current year are the expansion project at Pueblo Viejo, construction of the Third Shaft at |
f. | 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. |
g. | 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 Nevada Gold Mines (including South Arturo), Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara, Bulyanhulu, and Buzwagi (up until the third quarter of 2021) operating segments. It also includes capital expenditures applicable to our equity method investment in Kibali. Figures remove the impact of Pierina, Golden Sunlight, Lagunas Norte up until its divestiture in |
($ millions) | For the three months ended | |||||
Non-controlling interest, copper operations and other | ||||||
General & administrative costs | (13 | ) | (4 | ) | (6 | ) |
Minesite exploration and evaluation expenses | (3 | ) | (2 | ) | (7 | ) |
Rehabilitation - accretion and amortization (operating sites) | (3 | ) | (3 | ) | (3 | ) |
Minesite sustaining capital expenditures | (157 | ) | (182 | ) | (138 | ) |
All-in sustaining costs total | (176 | ) | (191 | ) | (154 | ) |
Global exploration and evaluation and project expense | (4 | ) | (6 | ) | (1 | ) |
Project capital expenditures | (54 | ) | (65 | ) | (41 | ) |
All-in costs total | (58 | ) | (71 | ) | (42 | ) |
h. | Ounces sold - equity basis Figures remove the impact of: Pierina, Golden Sunlight, Lagunas Norte up until its divestiture in |
i. | Cost of sales per ounce Figures remove the cost of sales impact of: Pierina of |
j. | 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. |
k. | 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 | |||||
By-product credits | 55 | 70 | 59 | |||
Non-controlling interest | (19 | ) | (25 | ) | (26 | ) |
By-product credits (net of non-controlling interest) | 36 | 45 | 33 |
Endnote 10
“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, 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. Management believes that the use of “C1 cash costs” per pound and “all-in sustaining costs” per pound will enable 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. “C1 cash costs” per pound and “All-in sustaining costs” per pound 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. Other companies may calculate these measures differently. Further details on these non-GAAP financial performance 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 | |||||
Cost of sales | 154 | 134 | 136 | |||
Depreciation/amortization | (38 | ) | (43 | ) | (48 | ) |
Treatment and refinement charges | 51 | 39 | 41 | |||
Cash cost of sales applicable to equity method investments | 72 | 88 | 79 | |||
Less: royalties and production taxesa | (32 | ) | (28 | ) | (23 | ) |
By-product credits | (3 | ) | (6 | ) | (4 | ) |
Other | 0 | 0 | 0 | |||
C1 cash costs | 204 | 184 | 181 | |||
General & administrative costs | 12 | 5 | 4 | |||
Rehabilitation - accretion and amortization | 1 | 2 | 1 | |||
Royalties and production taxesa | 32 | 28 | 23 | |||
Minesite exploration and evaluation costs | 3 | 5 | 2 | |||
Minesite sustaining capital expenditures | 67 | 104 | 42 | |||
Sustaining leases | 1 | 3 | 2 | |||
All-in sustaining costs | 320 | 331 | 255 | |||
Pounds sold - consolidated basis (millions pounds) | 113 | 113 | 113 | |||
Cost of sales per poundb,c | 2.21 | 2.21 | 2.11 | |||
C1 cash cost per poundb | 1.81 | 1.63 | 1.60 | |||
All-in sustaining costs per poundb | 2.85 | 2.92 | 2.26 |
- For the three month period ended
March 31, 2022 , royalties and production taxes include royalties of$32 million (December 31, 2021 :$28 million andMarch 31, 2021 :$23 million ). - 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.
- 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 using Barrick's ownership share).
Endnote 11
A Tier One Gold Asset is an asset with a reserve potential to deliver a minimum 10-year life, 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. A Tier One Copper Asset is an asset with a reserve potential of greater than five million tonnes of contained copper and C1 cash costs per pound over the mine life that are in the lower half of the industry cost curve.
Endnote 12
Lost time injury frequency rate (“LTIFR”) is a ratio calculated as follows: number of lost time injuries x 1,000,000 hours divided by the total number of hours worked.
Endnote 13
On a 100% basis. See the Technical Report on the Pueblo Viejo mine,
Endnote 14
The declaration and payment of dividends is at the discretion of the Board of Directors, and will depend on the Company’s financial results, cash requirements, future prospects, the number of outstanding common shares, and other factors deemed relevant by the Board.
Endnote 15
Historical estimate as of
Endnote 16
Estimated in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects as required by Canadian securities regulatory authorities. Estimates are as of
Endnote 17
Total reportable incident frequency rate ("TRIFR") is a ratio calculated as follows: number of reportable injuries x 1,000,000 hours divided by the total number of hours worked. Reportable injuries include fatalities, lost time injuries, restricted duty injuries, and medically treated injuries.
Endnote 18
Future economic contribution over extended mine life assuming a gold price of
Endnote 19
As of
Endnote 20
The actual number of common shares that may be purchased, if any, and the timing of any such purchases, will be determined by Barrick based on a number of factors, including the company’s financial performance, the availability of cash flows, and the consideration of other uses of cash, including capital investment opportunities, returns to shareholders, and debt reduction.
Endnote 21
Included within our 61.5% interest in
Endnote 22
Includes Goldrush.
Endnote 23
Porgera was placed on temporary care and maintenance in
Endnote 24
Total cash costs and all-in sustaining costs per ounce include costs allocated to non-operating sites.
Endnote 25
Operating division guidance ranges reflect expectations at each individual operating division, and may not add up to the company-wide guidance range total. Guidance ranges exclude Pierina, Golden Sunlight and Buzwagi. Some of these assets are producing incidental ounces while in closure or care and maintenance.
Endnote 26
Includes corporate administration costs.
Endnote 27
EBITDA is a non-GAAP financial performance 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; and other expense adjustments. We also remove 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 definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate EBITDA and adjusted EBITDA differently. Further details on these non-GAAP financial performance 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 | |||||
Net earnings | 706 | 1,152 | 830 | |||
Income tax expense | 301 | 304 | 374 | |||
Finance costs, neta | 76 | 74 | 77 | |||
Depreciation | 460 | 557 | 507 | |||
EBITDA | 1,543 | 2,087 | 1,788 | |||
Impairment charges (reversals) of long-lived assetsb | 2 | 14 | (89 | ) | ||
Acquisition/disposition (gains) lossesc | (2 | ) | (198 | ) | (3 | ) |
Loss on currency translation | 3 | 13 | 4 | |||
Other expense adjustmentsd | 13 | 36 | 11 | |||
Income tax expense, net finance costs, and depreciation from equity investees | 86 | 118 | 89 | |||
Adjusted EBITDA | 1,645 | 2,070 | 1,800 |
- Finance costs exclude accretion.
- For the three month period ended
March 31, 2022 , we recorded no significant impairment charges or reversals. Net impairment reversals for the three months endedMarch 31, 2021 mainly relate to non-current asset reversals at Lagunas Norte. - There were no significant acquisition/disposition gains or losses for the three months ended
March 31, 2022 . Acquisition/disposition gains for the three month period endedDecember 31, 2021 primarily relate to the gain on the divestiture ofLone Tree . - Other expense adjustments for all periods mainly relate to care and maintenance expenses at Porgera. The three month period ended
December 31, 2021 was further impacted by a$25 million litigation settlement.
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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 “believe”, “expect”, “anticipate”, “contemplate”, “goal”, “target”, “plan”, “strategy”, “opportunities”, “guidance”, “outlook”, “project”, “continue”, “committed”, “budget”, “estimate”, “forecast”, “potential”, “proposed”, “future”, “prospective”, “focus”, “during”, “ongoing”, “following”, “subject to”, “scheduled”, “will”, “could”, “would”, “should” 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; estimates of future cost of sales per ounce for gold and per pound for copper, total cash costs per ounce and C1 cash costs per pound, and all-in-sustaining costs per ounce/pound; projected capital, operating and exploration expenditures; our ability to convert resources into reserves and replace reserves net of depletion from production; mine life and production rates; Barrick’s global exploration strategy and planned exploration activities, including in new prospective territories in the
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); risks associated with projects in the early stages of evaluation and for which additional engineering and other analysis is required; risks related to the possibility that future exploration results will not be consistent with the Company’s expectations, that quantities or grades of reserves will be diminished, and that resources may not be converted to reserves; risks associated with the fact that certain of the initiatives described in this press release are still in the early stages and may not materialize; changes in mineral production performance, exploitation and exploration successes; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; the speculative nature of mineral exploration and development; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices; expropriation or nationalization of property and political or economic developments in
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the
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