Barrick to Ramp Up Production As It Remains On Track to Achieve 2024 Targets
*First Quarter 2024 Results
*All amounts expressed in U.S. dollars
TORONTO, May 01, 2024 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today reported its first quarter results which were in line with guidance and position the Company well to meet its full year targets. Gold production is expected to ramp up steadily during the year, supported by the completion of the Pueblo Viejo plant expansion and the resumption of operations at the Porgera mine. Additionally, copper production is also on track to meet the full year’s guidance.
Reporting its Q1 results, Barrick said lower production and the consequent higher costs reflected the delayed ramp up at Pueblo Viejo following reconstruction of the conveyor, which has now been completed, in addition to planned maintenance at Nevada Gold Mines (NGM) and mine sequencing at other sites. In the meantime, the Company was progressing its four major organic growth projects: the ramp up of the Goldrush gold mine in Nevada; the Pueblo Viejo expansion; the Super Pit project at the Lumwana copper mine in Zambia; and the development of the giant copper-gold mine at Reko Diq in Pakistan. Brownfields growth continues to support Barrick’s unique reserve replacement record and greenfields exploration is expanding its portfolio across the world.
Financial results for the quarter show a year-over-year 143% increase in net earnings per share, a 36% rise in adjusted net earnings^1, and a 7% increase to $907 million in attributable EBITDA^2, with the operations delivering $760 million in operating cash flow for the quarter. The quarterly dividend was maintained at $0.10 per share.
Operational highlights for the quarter also included the accelerated ramp-up of Goldrush in Nevada after its final permitting (Record of Decision) late last year. At the nearby Fourmile project — a potentially world-class asset 100% owned by Barrick — drilling for a prefeasibility study has started to drive it up the value curve. Exploration has identified open-ended high-grade upside at Turquoise Ridge in Nevada, already Barrick’s highest-grade mine, and at Kibali in the Democratic Republic of Congo, geologists have discovered a significant high-grade trend similar to the KCD deposit on which the mine was built.
Commenting on the results, president and chief executive Mark Bristow said Barrick’s ability to grow its gold and copper production from its peerless asset base would amplify its profitability in the rising commodity markets.
“Our focus on exploration has placed Barrick in the unique position of more than replacing the reserves we mine year after year. Our key organic projects, such as the development of Reko Diq, the extension of Pueblo Viejo’s Tier One^13 life by more than 20 years and the transformation of Lumwana into one of the world’s major copper mines will secure Barrick’s production profile well into the future,” he said.
Barrick’s holistic sustainability strategy remains foundational to all aspects of its business and continues to deliver real value to stakeholders. Bristow noted that among many other things, the Company had increased its water re-use and recycle rate to 84% last quarter, commissioned the first stage of a 100-megawatt solar array at NGM and had a 16-megawatt solar array permitted at Kibali. Power purchase agreements by NGM have avoided 75% of its emissions. On the biodiversity front, Barrick has a 730-hectare rehabilitation plan for its operating sites for 2024 and also aims to relocate 72 more white rhinos to the Garamba National Park in the Democratic Republic of Congo, in conjunction with the Institut Congolais pour la Conservation de la Nature (ICCN) and African Parks.
*Financial and Operating Highlights*
*Financial Results* *Q1 2024* *Q4 2023* *Q1 2023*
Realized gold price^3,4 ($ per ounce) *2,075* 1,986 1,902
Realized copper price^3,4 ($ per pound) *3.86* 3.78 4.20
Net earnings^5 ($ millions) *295* 479 120
Adjusted net earnings^1 ($ millions) *333* 466 247
Attributable EBITDA^2
($ millions) *907* 1,068 851
Net cash provided by operating activities ($ millions) *760* 997 776
Free cash flow^6 ($ millions) *32* 136 88
Net earnings per share ($) *0.17* 0.27 0.07
Adjusted net earnings per share^1 ($) *0.19* 0.27 0.14
Attributable capital expenditures^7 ($ millions) *572* 660 526
*Operating Results* *Q1 2024* *Q4 2023* *Q1 2023*
*Gold*
Production^3 (thousands of ounces) *940* 1,054 952
Cost of sales (Barrick’s share)^3,8 ($ per ounce) *1,425* 1,359 1,378
Total cash costs^3,9 ($ per ounce) *1,051* 982 986
All-in sustaining costs^3,9 ($ per ounce) *1,474* 1,364 1,370
*Copper*
Production^3,10 (thousands of tonnes) *40* 51 40
Cost of sales (Barrick’s share)^3,11 ($ per pound) *3.20* 2.92 3.22
C1 cash costs^3,12 ($ per pound) *2.40* 2.17 2.71
All-in sustaining costs^3,12 ($ per pound) *3.59* 3.12 3.40
*Financial Position* *As at 3/31/24* As at 12/31/23 As at 3/31/23
Debt (current and long-term) ($ millions) *4,725* 4,726 4,777
Cash and equivalents ($ millions) *3,942* 4,148 4,377
Debt, net of cash ($ millions) *783* 578 400
*Key Performance Indicators*
*Best Assets*
· Barrick on track to achieve 2024 targets as Pueblo Viejo and Porgera ramp up
· Another strong performance from Loulo-Gounkoto and Veladero in Q1
· Costs expected to track lower through the year on steadily increasing production
· Pueblo Viejo completes conveyor rebuild, plant ramping up in Q2
· Porgera produces first gold, with plant ramp-up on track to reach capacity in 2024
· Another significant contribution from the copper portfolio with increasing production forecast through the year
· Reko Diq and Lumwana feasibility studies on track for completion by year end with long-lead orders expected to commence in Q3
· Focus shifts to Fourmile on the back of Goldrush success and exploration expands beyond brownfields targets
· Brownfields growth continues as engine for organic reserve replacement with encouraging drilling results at NGM, Loulo and Kibali
· Greenfield exploration, complemented by strategic partnerships, grows portfolio in the most prospective belts
*Leader in Sustainability*
· Continued focus on safety, refining our ‘Journey to Zero’ program with Group-wide rollout of Fatal Risk Standards
· Differentiated and holistic approach to sustainability reinforced in Sustainability Report to be published in May 2024
· Commissioned 50% of the 200-megawatt solar facility in Nevada — an initiative supported by U.S. government incentives of over $100 million, including incentives for U.S.-manufactured solar cells*Delivering Value*
· Barrick’s focus on gold and copper production growth amplifies profitability in rising commodity market
· Operating cash flow of $760 million for the quarter
· Net earnings per share of $0.17 and adjusted net earnings per share^1 of $0.19 for the quarter
· $0.10 per share dividend declared*Q1 2024 Results Presentation*
*Webinar and Conference Call*
Mark Bristow will host a live presentation of the results today at 11:00 AM ET, with an interactive webinar linked to a conference call. Participants will be able to ask questions.
Go to the webinar
US/Canada (toll-free), 1 844 763 8274
UK (toll), +44 20 3795 9972
International (toll), +1 647 484 8814
The Q1 presentation materials will be available on Barrick’s website at www.barrick.com and the webinar will remain on the website for later viewing.
*BARRICK DECLARES Q1 DIVIDEND*
*Barrick today announced the declaration of a dividend of $0.10 per share for Q1 2024. The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of 2022. *
The Q1 2024 dividend will be paid on June 17, 2024 to shareholders of record at the close of business on May 31, 2024.
“The continued strength of our balance sheet and our global asset base provide us with the ability to maintain the distribution of a robust dividend to our shareholders, whilst still ensuring Barrick has adequate liquidity to invest in growing our business,” said senior executive vice-president and chief financial officer Graham Shuttleworth.
*WORLD-CLASS COPPER PROJECTS SET TO DELIVER INTO RISING PRICE AND DEMAND MARKET*
*The copper industry has traditionally suffered from underinvestment while the search for new resources to boost production has accelerated. The long lead times needed to turn discoveries into mines mean that supply is unable to meet the growing global demand, driven by the worldwide transition to renewable energy.*
Foreseeing the emergence of the metal’s critical importance to the greening of the global grid, Barrick made the expansion of its copper portfolio a strategic priority at the time of the merger with Randgold five years ago. A thorough review of its global assets highlighted two significant opportunities: the Lumwana mine in Zambia; and the dormant Reko Diq project in Pakistan.
The new Barrick team restructured and re-engineered the struggling Lumwana operation back to health and then embarked on a Super Pit expansion project which will transform Lumwana into one of the world’s largest copper mines, with a projected annual production of around 240,000 tonnes per year over a life of more than 30 years.^14 It is a key component of the Zambian government’s drive to revive the country’s copper industry.
At the same time, Barrick revisited the Reko Diq project in Pakistan, which hosts one of the world’s largest undeveloped copper-gold deposits. Stalled at the feasibility stage almost a decade ago, Barrick revitalized the project through a reconstituted ownership structure based on its trademark partnership model. The Company owns 50% and will operate the mine, a number of Pakistani state-owned enterprises hold 25% and, at Barrick’s insistence, the remaining 25% is held by the government of the Balochistan province to ensure that the province and its people will receive a substantial economic benefit from the mine.
Both projects are on track for first production in 2028 when they will lift Barrick into the upper tier of copper miners and stand alongside its peerless gold asset portfolio as a major contributor. It is worth noting that some analysts predict that gold and copper both appear to be entering a new commodity super cycle where demand outstrips supply, leading to high prices for years to come.
President and chief executive Mark Bristow said Reko Diq was a prime example of Barrick’s ability to recognize and realize value. “This is undoubtedly one of the best undeveloped copper-gold deposits in the world, with a truly unique combination of large scale, low strip and high-grade orebodies. Barrick has a long record of success in seeing projects of this magnitude through from construction to operation, and we also bring to Reko Diq our expertise in successfully partnering with host countries for the benefit of all stakeholders in developing jurisdictions globally,” he said.
“There is also an enormous opportunity here to further unlock value, not only at Reko Diq but also in the wider region, which is underexplored and highly prospective."
Regarding Lumwana, Bristow said that well before the completion of its expansion program, the revived mine had already contributed almost $3 billion to the Zambian economy since 2019 in the form of royalties, taxes, salaries and the procurement of goods and services from local businesses.
As at its other operations, Barrick has also promoted the development of a sustainable local economy around the mine. Among other things, it has launched a Business Accelerator Program designed to build the commercial capacity of the contractors in its supply chain, equipping them to grow and diversify their businesses.
*POWER-BASED STRATEGIES AND TECHNOLOGY DRIVE EFFICIENCIES, CUT COSTS*
*Barrick’s group-wide transition to clean energy is making steady progress with the commissioning of 50% of the TS Solar Power facility at NGM in April marking another major milestone on our greenhouse gas (GHG) emissions reduction roadmap.*
With 100 megawatts of energy-producing capacity in this first phase, the solar facility began transmitting power to NGM’s operations in April.
When the second and final stage is completed in the second quarter of 2024, adding another 100 megawatts of power, the solar array will have the capacity to produce between 15% to 20% of NGM’s annual power demand — reducing NGM’s annual GHG emissions by 8% and Barrick’s overall GHG emissions by 5% against a 2018 baseline. The U.S. government provided an important economic incentive for the development of this renewable project via a $35 million tax benefit (Barrick’s share).
NGM has committed to a 20% carbon reduction by 2025 which will be achieved through the TS Solar facility and the modification of NGM’s TS Power Plant providing the ability to use cleaner burning natural gas as a fuel source.
Up next at NGM is the development of an additional solar power facility with a battery energy storage system (BESS) to serve as a secondary power source, mitigating the impacts of power grid disruption, and enhancing renewable energy consumption during off-peak hours. The project has been awarded $95 million in funding from the U.S. Department of Energy following a highly-competitive process that evaluated potential clean energy projects on mine land across the country.
At Loulo-Gounkoto in Mali, the use of solar energy is also increasing with a 72-megawatt solar power facility and 38-megwatt BESS now connected to the complex’s micro-grid. Solar power accounted for 28% of the total energy blend used in the first quarter of 2024, which is up from 14% in 2023 and 9% in 2022. Energy costs were down $6 million in the first quarter with this shift to solar away from heavy fuel oil.
In the Democratic Republic of Congo, Kibali’s three hydropower stations provided most of the mine’s power last year. At an average cost of $0.04 per kilowatt-hour, the hydropower blend is 90% cheaper than diesel fuel. The current expansion of the mine’s solar plant will increase the renewable energy use from 81% to 85%, with the mine running solely on renewal power during the six-month rainy season.
In Argentina, the Libertadores powerline is supplying renewable power to Veladero from neighboring Chile’s national grid, reducing GHG emissions and adding cost efficiencies. 2023 was the powerline’s first full year of operation — and it’s one reason Veladero exceeded its production guidance and beat its guidance on costs last year. A solar plant project at Pueblo Viejo in the Dominican Republic is also underway.
Barrick is targeting an overall 30% reduction in GHG emissions by 2030 (against our 2018 baseline) with the goal of achieving net-zero emissions by 2050.
*NEVADA GOLD MINES CELEBRATES OFFICIAL OPENING OF GOLDRUSH*
*The Goldrush Project is officially on track to produce 130,000 ounces*^*15** of gold this year and will further enhance the value Nevada Gold Mines (NGM) brings to the state through taxes, employment and meaningful support for communities, said Barrick President and CEO, Mark Bristow, at the project’s opening ceremony attended by Governor Joe Lombardo and local stakeholders.*
Barrick, which owns 61.5% of the project through the NGM joint venture with Newmont (38.5%), is developing and will operate the mine, scheduled to reach commercial production by 2026 and growing to approximately 400,000 ounces per annum^15 by 2028 (100% basis). The 24-year underground mine is expected to provide 500 jobs during its construction and employment for 570 people once operational.
More than $300 million of a $1 billion capital budget (100% basis) has been spent on the project, which is expected to generate substantial tax revenue for the state both in the form of net proceeds from minerals tax and the gold and silver excise tax, earmarked for education. in Nevada under the new mine tax framework.
Speaking at the ribbon-cutting ceremony, Bristow thanked the bi-partisan federal delegation and the governor for their active and unwavering commitment that was instrumental in obtaining the record of decision, as well as our community stakeholders for supporting the project through the permitting process. “We recognize that we have been entrusted with a tremendous economic and environmental responsibility and we look forward to sharing the benefits of this new mine with Nevada and its people,” he said.
*BARRICK OPENS ACADEMY AT CLOSED BUZWAGI MINE*
*Barrick has officially opened its world-class training academy at the old Buzwagi mine, in line with its mine closure objective of leaving a positive legacy after mining has finished.*
The Barrick Academy is designed to offer tailor-made training programs aimed at developing Barrick’s frontline managers to grow both as individuals and as leaders in their fields, while equipping them with the skills to manage their teams more effectively and to improve performance.
The Academy will be training more than 2,000 foremen, supervisors and superintendents from the Africa and Middle East region in the next 24 months. Looking ahead, we are also gearing up to include our contractors and expand the curriculum to cover wider disciplines, including financial leadership, advanced computer literacy and safety courses.
The opening of the Barrick Academy follows the construction of an airport terminal at Buzwagi’s Kahama airstrip in January this year, which has paved the way for a scheduled airline service that can serve more than 200 passengers at a time. It is expected to be a major catalyst for economic growth in the region.
According to Barrick’s chief operating officer for the Africa and Middle East region, Sebastiaan Bock, the airport terminal and Academy form part of Barrick’s plan to turn Buzwagi into a Special Economic Zone. A feasibility study commissioned in 2021 showed that the creation of the Special Economic Zone (SEZ) had the potential to replace the mine as the region’s economic driver and could sustainably create 3,000 jobs annually, generate more than $150,000 each year from service levies for the local municipality and deliver approximately $4.5 million in employment taxes a year. The Government of Tanzania approved the conversion of the mine into a SEZ through a Government Notice that was issued in February this year. A number of investors have started the process of setting up manufacturing industries inside this area.
“How we close our mines is just as important to us as how we build and operate them. Our Buzwagi mine was a significant economic powerhouse in the region for nearly 15 years before it poured its last gold in 2021. From our perspective, however, that is not the end of the story for Buzwagi as we transform it into an alternative productive asset that will serve the community for decades to come,” Bock said.
*2024 Operating and Capital Expenditure Guidance*
*GOLD PRODUCTION AND COSTS* 2024 forecast
attributable production
(000s oz) 2024 forecast cost
of sales^8 ($/oz) 2024 forecast total
cash costs^9 ($/oz) 2024 forecast all-in
sustaining costs^9 ($/oz)
Carlin (61.5%) 800 - 880 1,270 - 1,370 1,030 - 1,110 1,430 - 1,530
Cortez (61.5%)^16 380 - 420 1,460 - 1,560 1,040 - 1,120 1,390 - 1,490
Turquoise Ridge (61.5%) 330 - 360 1,230 - 1,330 850 - 930 1,090 - 1,190
Phoenix (61.5%) 120 - 140 1,640 - 1,740 810 - 890 1,100 - 1,200
Nevada Gold Mines (61.5%) 1,650 - 1,800 1,340 - 1,440 980 - 1,060 1,350 - 1,450
Hemlo 140 - 160 1,470 - 1,570 1,210 - 1,290 1,600 - 1,700
North America 1,750 - 1,950 1,350 - 1,450 1,000 - 1,080 1,370 - 1,470
Pueblo Viejo (60%) 420 - 490 1,340 - 1,440 830 - 910 1,100 - 1,200
Veladero (50%) 210 - 240 1,340 - 1,440 1,010 - 1,090 1,490 - 1,590
Porgera (47.5%)^17 50 - 70 1,670 - 1,770 1,220 - 1,300 1,900 - 2,000
Latin America & Asia Pacific 700 - 800 1,370 - 1,470 920 - 1,000 1,290 - 1,390
Loulo-Gounkoto (80%) 510 - 560 1,190 - 1,290 780 - 860 1,150 - 1,250
Kibali (45%) 320 - 360 1,140 - 1,240 740 - 820 950 - 1,050
North Mara (84%) 230 - 260 1,250 - 1,350 970 - 1,050 1,270 - 1,370
Bulyanhulu (84%) 160 - 190 1,370 - 1,470 990 - 1,070 1,380 - 1,480
Tongon (89.7%) 160 - 190 1,520 - 1,620 1,200 - 1,280 1,440 - 1,540
Africa & Middle East 1,400 - 1,550 1,250 - 1,350 880 - 960 1,180 - 1,280
*Total Attributable to Barrick*^*18,19,20* 3,900 - 4,300 1,320 - 1,420 940 - 1,020 1,320 - 1,420
*COPPER PRODUCTION AND COSTS* 2024 forecast
attributable production
(000s tonnes)^10 2024 forecast cost
of sales^11 ($/lb) 2024 forecast C1
cash costs^12 ($/lb) 2024 forecast all-in
sustaining costs^12 ($/lb)
Lumwana 120 - 140 2.50 - 2.80 1.85 - 2.15 3.30 - 3.60
Zaldívar (50%) 35 - 40 3.70 - 4.00 2.80 - 3.10 3.40 - 3.70
Jabal Sayid (50%) 25 - 30 1.75 - 2.05 1.40 - 1.70 1.70 - 2.00
*Total Attributable to Barrick*^*20* 180 - 210 2.65 - 2.95 2.00 - 2.30 3.10 - 3.40
*ATTRIBUTABLE CAPITAL EXPENDITURES*^*21* ($ millions)
Attributable minesite sustaining^8,21 1,550 - 1,750
Attributable project^8,21 950 - 1,150
*Total attributable capital expenditures*^*21* 2,500 - 2,900
*2024 OUTLOOK ASSUMPTIONS AND ECONOMIC SENSITIVITY ANALYSIS*
2024 guidance
assumption Hypothetical change Impact on EBITDA^2
(millions) Impact on TCC and
AISC^9,12
Gold price sensitivity $1,900/oz +/- $100/oz ‘+/-$550 ‘+/-$5/oz
Copper price sensitivity $3.50/lb +/- $0.25/lb ‘+/- $110 ‘+/-$0.01/lb
*Production and Cost Summary - Gold*
For the three months ended *3/31/24**
* 12/31/23
% Change
3/31/23
% Change
*Nevada Gold Mines LLC (61.5%)*^*a*
Gold produced (000s oz attributable basis) *420* 513 (18 )% 416 1 %
Gold produced (000s oz 100% basis) *683* 833 (18 )% 676 1 %
Cost of sales ($/oz) *1,431* 1,331 8 % 1,461 (2 )%
Total cash costs ($/oz)^b *1,081* 968 12 % 1,074 1 %
All-in sustaining costs ($/oz)^b *1,536* 1,366 12 % 1,436 7 %
*Carlin (61.5%)*
Gold produced (000s oz attributable basis) *205* 224 (8 )% 166 23 %
Gold produced (000s oz 100% basis) *334* 363 (8 )% 270 23 %
Cost of sales ($/oz) *1,371* 1,219 12 % 1,449 (5 )%
Total cash costs ($/oz)^b *1,127* 1,006 12 % 1,215 (7 )%
All-in sustaining costs ($/oz)^b *1,687* 1,506 12 % 1,689 %
*Cortez (61.5%)*^*c*
Gold produced (000s oz attributable basis) *119* 162 (27 )% 140 (15 )%
Gold produced (000s oz 100% basis) *194* 263 (27 )% 226 (15 )%
Cost of sales ($/oz) *1,329* 1,353 (2 )% 1,324 %
Total cash costs ($/oz)^b *946* 909 4 % 913 4 %
All-in sustaining costs ($/oz)^b *1,341* 1,309 2 % 1,233 9 %
*Turquoise Ridge (61.5%)*
Gold produced (000s oz attributable basis) *62* 84 (26 )% 81 (23 )%
Gold produced (000s oz 100% basis) *101* 137 (26 )% 131 (23 )%
Cost of sales ($/oz) *1,733* 1,419 22 % 1,412 23 %
Total cash costs ($/oz)^b *1,359* 1,046 30 % 1,034 31 %
All-in sustaining costs ($/oz)^b *1,655* 1,257 32 % 1,271 30 %
*Phoenix (61.5%)*
Gold produced (000s oz attributable basis) *34* 41 (17 )% 27 26 %
Gold produced (000s oz 100% basis) *54* 67 (17 )% 45 26 %
Cost of sales ($/oz) *1,595* 1,576 1 % 2,380 (33 )%
Total cash costs ($/oz)^b *767* 787 (3 )% 1,198 (36 )%
All-in sustaining costs ($/oz)^b *944* 981 (4 )% 1,365 (31 )%
*Long Canyon (61.5%)*^*d*
Gold produced (000s oz attributable basis) *—* 2 (100 )% 2 (100 )%
Gold produced (000s oz 100% basis) *—* 3 (100 )% 4 (100 )%
Cost of sales ($/oz) *—* 2,193 (100 )% 1,621 (100 )%
Total cash costs ($/oz)^b *—* 990 (100 )% 579 (100 )%
All-in sustaining costs ($/oz)^b *—* 1,074 (100 )% 629 (100 )%
*Pueblo Viejo (60%)*
Gold produced (000s oz attributable basis) *81* 90 (10 )% 89 (9 )%
Gold produced (000s oz 100% basis) *134* 151 (10 )% 149 (9 )%
Cost of sales ($/oz) *1,527* 1,588 (4 )% 1,241 23 %
Total cash costs ($/oz)^b *1,013* 1,070 (5 )% 714 42 %
All-in sustaining costs ($/oz)^b *1,334* 1,428 (7 )% 1,073 24 %
*Loulo-Gounkoto (80%)*
Gold produced (000s oz attributable basis) *141* 127 11 % 137 3 %
Gold produced (000s oz 100% basis) *176* 159 11 % 172 3 %
Cost of sales ($/oz) *1,177* 1,296 (9 )% 1,275 (8 )%
Total cash costs ($/oz)^b *794* 924 (14 )% 855 (7 )%
All-in sustaining costs ($/oz)^b *1,092* 1,168 (7 )% 1,190 (8 )%
*Kibali (45%)*
Gold produced (000s oz attributable basis) *76* 93 (18 )% 64 19 %
Gold produced (000s oz 100% basis) *168* 206 (18 )% 141 19 %
Cost of sales ($/oz) *1,200* 1,141 5 % 1,367 (12 )%
Total cash costs ($/oz)^b *802* 737 9 % 987 (19 )%
All-in sustaining costs ($/oz)^b *1,048* 819 28 % 1,177 (11 )%
*Veladero (50%)*
Gold produced (000s oz attributable basis) *57* 55 4 % 43 33 %
Gold produced (000s oz 100% basis) *115* 110 4 % 86 33 %
Cost of sales ($/oz) *1,322* 1,378 (4 )% 1,587 (17 )%
Total cash costs ($/oz)^b *961* 1,021 (6 )% 1,035 (7 )%
All-in sustaining costs ($/oz)^b *1,664* 1,403 19 % 1,761 (6 )%
*Porgera (24.5%)*^*e*
Gold produced (000s oz attributable basis) *4* — — % — — %
Gold produced (000s oz 100% basis) *14* — — % — — %
Cost of sales ($/oz) *—* — — % — — %
Total cash costs ($/oz)^b *—* — — % — — %
All-in sustaining costs ($/oz)^b *—* — — % — — %
*Tongon (89.7%)*
Gold produced (000s oz attributable basis) *36* 42 (14 )% 50 (28 )%
Gold produced (000s oz 100% basis) *40* 47 (14 )% 55 (28 )%
Cost of sales ($/oz) *1,887* 1,489 27 % 1,453 30 %
Total cash costs ($/oz)^b *1,630* 1,184 38 % 1,182 38 %
All-in sustaining costs ($/oz)^b *1,773* 1,586 12 % 1,284 38 %
*Hemlo*
Gold produced (000s oz) *37* 34 9 % 41 (10 )%
Cost of sales ($/oz) *1,715* 1,618 6 % 1,486 15 %
Total cash costs ($/oz)^b *1,476* 1,407 5 % 1,291 14 %
All-in sustaining costs ($/oz)^b *1,754* 1,671 5 % 1,609 9 %
*North Mara (84%)*
Gold produced (000s oz attributable basis) *46* 59 (22 )% 68 (32 )%
Gold produced (000s oz 100% basis) *55* 71 (22 )% 81 (32 )%
Cost of sales ($/oz) *1,678* 1,420 18 % 987 70 %
Total cash costs ($/oz)^b *1,339* 1,103 21 % 759 76 %
All-in sustaining costs ($/oz)^b *1,753* 1,449 21 % 1,137 54 %
*Bulyanhulu (84%)*
Gold produced (000s oz attributable basis) *42* 41 2 % 44 (5 )%
Gold produced (000s oz 100% basis) *50* 48 2 % 53 (5 )%
Cost of sales ($/oz) *1,479* 1,413 5 % 1,358 9 %
Total cash costs ($/oz)^b *1,044* 1,002 4 % 982 6 %
All-in sustaining costs ($/oz)^b *1,485* 1,376 8 % 1,332 11 %
*Total Attributable to Barrick*^*f*
Gold produced (000s oz) *940* 1,054 (11 )% 952 (1 )%
Cost of sales ($/oz)^g *1,425* 1,359 5 % 1,378 3 %
Total cash costs ($/oz)^b *1,051* 982 7 % 986 7 %
All-in sustaining costs ($/oz)^b *1,474* 1,364 8 % 1,370 8 %
a. These results represent our 61.5% interest in Carlin, Cortez, Turquoise Ridge, Phoenix and Long Canyon until it transitioned to care and maintenance at the end of 2023, as previously reported.
b. Further information on these non-GAAP financial performance measures, including detailed reconciliations, is included in the endnotes to this press release.
c. Includes Goldrush.
d. Starting in the first quarter of 2024, we have ceased to include production or non-GAAP cost metrics for Long Canyon as it was placed on care and maintenance at the end of 2023, as previously reported.
e. As Porgera was placed on care and maintenance from April 25, 2020 until December 22, 2023, no operating data or per ounce data has been provided from the third quarter of 2020 to the fourth quarter of 2023. On December 22, 2023, we completed the Commencement Agreement, pursuant to which the PNG government and BNL, the 95% owner and operator of the Porgera joint venture, agreed on a partnership for the future ownership and operation of the mine. Ownership of Porgera is now held in a new joint venture owned 51% by PNG stakeholders and 49% by a Barrick affiliate, PJL. PJL is jointly owned on a 50/50 basis by Barrick and Zijin Mining Group and therefore Barrick now holds a 24.5% ownership interest in the Porgera joint venture. Barrick holds a 23.5% interest in the economic benefits of the mine under the economic benefit sharing arrangement agreed with the PNG government whereby Barrick and Zijin Mining Group together share 47% of the overall economic benefits derived from the mine accumulated over time, and the PNG stakeholders share the remaining 53%. In the first quarter of 2024, Porgera had gold production but did not have any gold sales.
f. Excludes Pierina, which was producing incidental ounces until December 31, 2023 while in closure. It also excludes Long Canyon which is producing residual ounces from the leach pad while in care and maintenance.
g. 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 *3/31/24* 12/31/23 % Change
3/31/23 % Change
*Lumwana*
Copper production (thousands of tonnes)^a *22* 33 (33 )% 22 %
Cost of sales ($/lb) *3.41* 2.95 16 % 3.56 (4 )%
C1 cash costs ($/lb)^b *2.52* 2.14 18 % 3.09 (18 )%
All-in sustaining costs ($/lb)^b *4.33* 3.38 28 % 3.98 9 %
*Zald**í**var (50%)*
Copper production (thousands of tonnes attributable basis)^a *9* 10 (10 )% 10 (10 )%
Copper production (thousands of tonnes 100% basis)^a *19* 20 (10 )% 20 (10 )%
Cost of sales ($/lb) *3.97* 3.85 3 % 3.73 6 %
C1 cash costs ($/lb)^b *2.95* 2.93 1 % 2.86 3 %
All-in sustaining costs ($/lb)^b *3.27* 3.51 (7 )% 3.22 2 %
*Jabal Sayid (50%)*
Copper production (thousands of tonnes attributable basis)^a *9* 8 13 % 8 13 %
Copper production (thousands of tonnes 100% basis)^a *17* 16 13 % 17 13 %
Cost of sales ($/lb) *1.61* 1.59 1 % 1.53 5 %
C1 cash costs ($/lb)^b *1.35* 1.32 2 % 1.39 (3 )%
All-in sustaining costs ($/lb)^b *1.55* 1.50 3 % 1.61 (4 )%
*Total Attributable to Barrick*
Copper production (thousands of tonnes)^a *40* 51 (22 )% 40 %
Cost of sales ($/lb)^c *3.20* 2.92 10 % 3.22 (1 )%
C1 cash costs ($/lb)^b *2.40* 2.17 11 % 2.71 (11 )%
All-in sustaining costs ($/lb)^b *3.59* 3.12 15 % 3.40 6 %
a. Starting in 2024, we have presented our copper production and sales quantities in tonnes rather than pounds (1 tonne is equivalent to 2,204.6 pounds). Production and sales amounts for prior periods have been restated for comparative purposes. Our copper cost metrics are still reported on a per pound basis.
b. Further information on these non-GAAP financial performance measures, including detailed reconciliations, is included in the endnotes to this press release.
c. Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick's ownership share).
*Financial and Operating Highlights*
For the three months ended
*3/31/24* 12/31/23 % Change 3/31/23 % Change
*Financial Results* ($ millions)
Revenues *2,747* 3,059 (10 )% 2,643 4 %
Cost of sales *1,936* 2,139 (9 )% 1,941 %
Net earnings^a *295* 479 (38 )% 120 146 %
Adjusted net earnings^b *333* 466 (29 )% 247 35 %
Attributable EBITDA^b *907* 1,068 (15 )% 851 7 %
Attributable EBITDA margin^c *41* *%* 42 % (2 )% 39 % 5 %
Minesite sustaining capital expenditures^b,d *550* 569 (3 )% 454 21 %
Project capital expenditures^b,d *165* 278 (41 )% 226 (27 )%
Total consolidated capital expenditures^d,e *728* 861 (15 )% 688 6 %
Net cash provided by operating activities *760* 997 (24 )% 776 (2 )%
Net cash provided by operating activities margin^f *28* *%* 33 % (15 )% 29 % (3 )%
Free cash flow^b *32* 136 (76 )% 88 (64 )%
Net earnings per share (basic and diluted) *0.17* 0.27 (37 )% 0.07 143 %
Adjusted net earnings (basic)^b per share *0.19* 0.27 (30 )% 0.14 36 %
Weighted average diluted common shares (millions of shares) *1,756* 1,756 % 1,755 %
*Operating Results*
Gold production (thousands of ounces)^g *940* 1,054 (11 )% 952 (1 )%
Gold sold (thousands of ounces)^g *910* 1,042 (13 )% 954 (5 )%
Market gold price ($/oz) *2,070* 1,971 5 % 1,890 10 %
Realized gold price^b,g ($/oz) *2,075* 1,986 4 % 1,902 9 %
Gold cost of sales (Barrick’s share)^g,h ($/oz) *1,425* 1,359 5 % 1,378 3 %
Gold total cash costs^b,g ($/oz) *1,051* 982 7 % 986 7 %
Gold all-in sustaining costs^b,g ($/oz) *1,474* 1,364 8 % 1,370 8 %
Copper production (thousands of tonnes)^g,i *40* 51 (22 )% 40 %
Copper sold (thousands of tonnes)^g,i *39* 53 (26 )% 40 (3 )%
Market copper price ($/lb) *3.83* 3.70 4 % 4.05 (5 )%
Realized copper price^b,g ($/lb) *3.86* 3.78 2 % 4.20 (8 )%
Copper cost of sales (Barrick’s share)^g,j ($/lb) *3.20* 2.92 10 % 3.22 (1 )%
Copper C1 cash costs^b,g ($/lb) *2.40* 2.17 11 % 2.71 (11 )%
Copper all-in sustaining costs^b,g ($/lb) *3.59* 3.12 15 % 3.40 6 % *As at
3/31/24* As at
12/31/23 % Change As at 3/31/23 % Change
*Financial Position* ($ millions)
Debt (current and long-term) *4,725* 4,726 % 4,777 (1 )%
Cash and equivalents *3,942* 4,148 (5 )% 4,377 (10 )%
Debt, net of cash *783* 578 35 % 400 96 %
a. Net earnings represents net earnings attributable to the equity holders of the Company.
b. Further information on these non-GAAP financial performance measures, including detailed reconciliations, is included in the endnotes to this press release.
c. Represents adjusted EBITDA divided by revenue.
d. Amounts presented on a consolidated cash basis. Project capital expenditures are included in our calculation of all-in costs, but not included in our calculation of all-in sustaining costs.
e. Total consolidated capital expenditures also includes capitalized interest of $13 million for the three month period ended March 31, 2024 (December 31, 2023: $14 million and March 31, 2023: $8 million).
f. Represents net cash provided by operating activities divided by revenue.
g. On an attributable basis.
h. Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using Barrick's ownership share).
i. Starting in 2024, we have presented our copper production and sales quantities in tonnes rather than pounds (1 tonne is equivalent to 2,204.6 pounds). Production and sales amounts for prior periods have been restated for comparative purposes. Our copper cost metrics are still reported on a per pound basis.
j. Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick's ownership share).
*Consolidated Statements of Income*
Barrick Gold Corporation
(in millions of United States dollars, except per share data) (Unaudited) Three months ended
March 31, *2024* 2023
*Revenue (notes 4 and 5)* *$**2,747* $2,643
*Costs and expenses (income)*
Cost of sales (notes 4 and 6) *1,936* 1,941
General and administrative expenses *28* 39
Exploration, evaluation and project expenses *95* 71
Impairment charges (note 8b) *17* 1
Loss on currency translation *12* 38
Closed mine rehabilitation *(2* *)* 22
Income from equity investees (note 11) *(48* *)* (53 )
Other expense (note 8a) *17* 52
*Income before finance costs and income taxes* *$**692* $532
Finance costs, net *(31* *)* (58 )
*Income before income taxes* *$**661* $474
Income tax expense (note 9) *(174* *)* (205 )
*Net income* *$**487* $269
*Attributable to:*
Equity holders of Barrick Gold Corporation *$**295* $120
Non-controlling interests (note 14) *$**192* $149
*Earnings per share data attributable to the equity holders of Barrick Gold Corporation (note 7)*
Net income
Basic *$**0.17* $0.07
Diluted *$**0.17* $0.07
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2024 available on our website, are an integral part of these consolidated financial statements.
*Consolidated Statements of Comprehensive Income*
Barrick Gold Corporation
(in millions of United States dollars) (Unaudited) Three months ended
March 31, *2024* 2023
Net income *$**487* $269
*Other comprehensive income (loss), net of taxes*
*Items that may be reclassified subsequently to profit or loss:*
Unrealized gains on derivatives designated as cash flow hedges, net of tax $nil and $nil *1* —
Currency translation adjustments, net of tax $nil and $nil *—* (3 )
*Items that will not be reclassified to profit or loss:*
Net change on equity investments, net of tax $nil and $nil *1* —
*Total other comprehensive income (loss)* *2* (3 )
*Total comprehensive income* *$**489* $266
*Attributable to:*
Equity holders of Barrick Gold Corporation *$**297* $117
Non-controlling interests *$**192* $149
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2024 available on our website, are an integral part of these consolidated financial statements.
*Consolidated Statements of Cash Flow*
Barrick Gold Corporation(in millions of United States dollars) (Unaudited) Three months ended
March 31, *2024* 2023
*OPERATING ACTIVITIES *
Net income *$**487* $269
Adjustments for the following items:
Depreciation *474* 495
Finance costs, net *31* 58
Impairment charges (note 8b) *17* 1
Income tax expense (note 9) *174* 205
Income from equity investees (note 11) *(48* *)* (53 )
Gain on sale of non-current assets *(1* *)* (3 )
Loss on currency translation *12* 38
Change in working capital (note 10) *(241* *)* (191 )
Other operating activities (note 10) *(70* *)* 37
Operating cash flows before interest and income taxes *835* 856
Interest paid *(27* *)* (23 )
Interest received *68* 49
Income taxes paid^1 *(116* *)* (106 )
*Net cash provided by operating activities* *760* 776
*INVESTING ACTIVITIES*
Property, plant and equipment
Capital expenditures (note 4) *(728* *)* (688 )
Sales proceeds *—* 3
Funding of equity method investments (note 11) *(44* *)* —
Dividends received from equity method investments (note 11) *47* 67
Shareholder loan repayments from equity method investments *45* —
*Net cash used in investing activities* *(680* *)* (618 )
*FINANCING ACTIVITIES*
Lease repayments *(3* *)* (4 )
Dividends *(175* *)* (175 )
Funding from non-controlling interests (note 14) *22* —
Disbursements to non-controlling interests (note 14) *(121* *)* (62 )
Pueblo Viejo JV partner shareholder loan *(7* *)* 20
*Net cash used in financing activities* *(284* *)* (221 )
*Effect of exchange rate changes on cash and equivalents* *(2* *)* —
Net decrease in cash and equivalents *(206* *)* (63 )
*Cash and equivalents at the beginning of period * *4,148* 4,440
*Cash and equivalents at the end of period* *$**3,942* $4,377
^1 Income taxes paid excludes $17 million (2023: $28 million) for the three months ended March 31, 2024 of income taxes payable that were settled against offsetting value added tax (“VAT”) receivables.
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2024 available on our website, are an integral part of these consolidated financial statements.
*Consolidated Balance Sheets*
Barrick Gold Corporation *As at March 31,* As at December 31,
(in millions of United States dollars) (Unaudited) *2024* 2023
*ASSETS*
Current assets
Cash and equivalents *$**3,942* $4,148
Accounts receivable *654* 693
Inventories *1,805* 1,782
Other current assets *880* 815
Total current assets *$**7,281* $7,438
Non-current assets
Non-current portion of inventory *2,684* 2,738
Equity in investees (note 11) *4,178* 4,133
Property, plant and equipment *26,648* 26,416
Intangible assets *148* 149
Goodwill *3,581* 3,581
Other assets *1,323* 1,356
*Total assets* *$**45,843* $45,811
*LIABILITIES AND EQUITY*
Current liabilities
Accounts payable *$**1,360* $1,503
Debt *12* 11
Current income tax liabilities *317* 303
Other current liabilities *506* 539
Total current liabilities *$**2,195* $2,356
Non-current liabilities
Debt *4,713* 4,715
Provisions *2,008* 2,058
Deferred income tax liabilities *3,472* 3,439
Other liabilities *1,238* 1,241
*Total liabilities* *$**13,626* $13,809
Equity
Capital stock (note 13) *$**28,118* $28,117
Deficit *(6,594* *)* (6,713 )
Accumulated other comprehensive income *26* 24
Other *1,913* 1,913
*Total equity attributable to Barrick Gold Corporation shareholders* *$**23,463* $23,341
Non-controlling interests (note 14) *8,754* 8,661
*Total equity* *$**32,217* $32,002
Contingencies and commitments (notes 4 and 15)
*Total liabilities and equity* *$**45,843* $45,811
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2024 available on our website, are an integral part of these consolidated financial statements.
*Consolidated Statements of Changes in Equity*
Barrick Gold Corporation Attributable to equity holders of the company
(in millions of United States dollars) (Unaudited) Common Shares (in thousands) Capital stock
Retained earnings (deficit)
Accumulated other comprehensive income (loss)^1
Other^2
Total equity attributable to shareholders
Non-controlling interests
Total equity
*At January 1, 2024* *1,755,570* *$**28,117* *($**6,713* *)* *$**24* *$**1,913* *$**23,341* *$**8,661* *$**32,002*
Net income — — 295 — — 295 192 487
Total other comprehensive income — — — 2 — 2 — 2
Total comprehensive income — — 295 2 — 297 192 489
Transactions with owners
Dividends — — (175 ) — — (175 ) — (175 )
Funding from non-controlling interests (note 14) — — — — — — 22 22
Disbursements to non-controlling interests (note 14) — — — — — — (121 ) (121 )
Dividend reinvestment plan (note 13) 66 1 (1 ) — — — — —
Total transactions with owners 66 1 (176 ) — — (175 ) (99 ) (274 )
*At March 31, 2024* *1,755,636* *$**28,118* *($**6,594* *)* *$**26* *$**1,913* *$**23,463* *$**8,754* *$**32,217*
*At January 1, 2023* *1,755,350* *$**28,114* *($**7,282* *)* *$**26* *$**1,913* *$**22,771* *$**8,518* *$**31,289*
Net income — — 120 — — 120 149 269
Total other comprehensive loss — — — (3 ) — (3 ) — (3 )
Total comprehensive income (loss) — — 120 (3 ) — 117 149 266
Transactions with owners
Dividends — — (175 ) — — (175 ) — (175 )
Disbursements to non-controlling interests — — — — — — (62 ) (62 )
Dividend reinvestment plan 58 1 (1 ) — — — — —
Total transactions with owners 58 1 (176 ) — — (175 ) (62 ) (237 )
*At March 31, 2023* *1,755,408* *$**28,115* *($**7,338* *)* *$**23* *$**1,913* *$**22,713* *$**8,605* *$**31,318*
^1 Includes cumulative translation losses at March 31, 2024: $95 million (December 31, 2023: $95 million; March 31, 2023: $95 million).
^2 Includes additional paid-in capital as at March 31, 2024: $1,875 million (December 31, 2023: $1,875 million; March 31, 2023: $1,875 million).
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2024 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 Craig Fiddes, SME-RM, Lead, Resource Modeling, Nevada Gold Mines; Richard Peattie, MPhil, FAusIMM, Mineral Resources Manager: Africa and Middle East; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral Resource Management and Evaluation Executive (in this capacity, Mr. Bottoms is also responsible on an interim basis for scientific and technical information relating to the Latin America and Asia Pacific region); John Steele, CIM, Metallurgy, Engineering and Capital Projects Executive; and Joel Holliday, FAusIMM, Executive Vice-President, Exploration — each a “Qualified Person” as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
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 December 31, 2023.
*Endnotes*
*Endnote 1*
“Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial performance measures. Adjusted net earnings excludes the following from net earnings: impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and investments; acquisition/disposition gains/losses; foreign currency translation gains/losses; significant tax adjustments; other items that are not indicative of the underlying operating performance of our core mining business; and tax effect and non-controlling interest of the above 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 impairment charges, acquisition/disposition gains/losses and significant tax adjustments 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 does not have any standardized definition under IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS”) and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently. The following table reconciles these non-GAAP financial measures to the most directly comparable IFRS measure. 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.sedarplus.ca 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 *3/31/24* 12/31/23 3/31/23
Net earnings attributable to equity holders of the Company *295* 479 120
Impairment charges related to intangibles, goodwill, property, plant and equipment, and investments^a *17* 289 1
Acquisition/disposition gains^b *(1* *)* (354 ) (3 )
Loss on currency translation *12* 37 38
Significant tax adjustments^c *29* 120 48
Other (income) expense adjustments^d *(9* *)* 41 63
Non-controlling interest^e *(4* *)* (89 ) (6 )
Tax effect^e *(6* *)* (57 ) (14 )
Adjusted net earnings *333* 466 247
Net earnings per share^f *0.17* 0.27 0.07
Adjusted net earnings per share^f *0.19* 0.27 0.14
a. For the three month period ended March 31, 2024, net impairment charges were mainly related to miscellaneous property, plant and equipment assets. For the three month period ended December 31, 2023, net impairment charges mainly related to a long-lived asset impairment at Long Canyon.
b. For the three month period ended December 31, 2023, acquisition/disposition gains mainly related to a gain on the reopening of the Porgera mine as the conditions for the reopening were completed on December 22, 2023.
c. For the three month period ended March 31, 2024, significant tax adjustments were mainly related to the de-recognition of deferred tax assets and the re-measurement of deferred tax balances. Significant tax adjustments for the three month period ended December 31, 2023 related to foreign currency translation gains and losses on tax balances; the impact of prior year adjustments; and the recognition and derecognition of deferred tax assets.
d. For the three month periods ended March 31, 2024 and December 31, 2023, other (income) expense adjustments mainly related to changes in the discount rate assumptions on our closed mine rehabilitation provision. The three month period ended December 31, 2023 was further impacted by care and maintenance expenses at Porgera. Other (income) expense adjustments for the three month period ended March 31, 2023 mainly related to the $30 million commitment we made towards the expansion of education infrastructure in Tanzania, per our community investment obligations under the Twiga partnership.
e. Non-controlling interest and tax effect for the three month period ended March 31, 2024 primarily relates to net impairment charges.
f. Calculated using weighted average number of shares outstanding under the basic method of earnings per share.
*Endnote 2*
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. In the third quarter of 2023 we introduced attributable EBITDA, which removes the non-controlling interest portion from our adjusted EBITDA measure. Prior periods have been presented to allow for comparability. We believe this additional information will assist analysts, investors and other stakeholders of Barrick in better understanding our ability to generate liquidity from our attributable business and which is aligned with how we present our forward looking guidance on gold ounces and copper pounds produced. EBITDA, adjusted EBITDA, and attributable 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, adjusted EBITDA, and attributable 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.sedarplus.ca and on EDGAR at www.sec.gov.
*Reconciliation of Net Earnings to EBITDA, Adjusted EBITDA and Attributable EBITDA*
($ millions) For the three months ended
*3/31/24**
* 12/31/23
3/31/23
Net earnings *487* 597 269
Income tax expense *174* 174 205
Finance costs, net^a *10* (7 ) 37
Depreciation *474* 564 495
EBITDA *1,145* 1,328 1,006
Impairment charges of non-current assets^b *17* 289 1
Acquisition/disposition gains^c *(1* *)* (354 ) (3 )
Loss on currency translation *12* 37 38
Other (income) expense adjustments^d *(9* *)* 41 63
Income tax expense, net finance costs^a, and depreciation from equity investees *102* 118 78
Adjusted EBITDA *1,266* 1,459 1,183
Non-controlling Interests *(359* *)* (391 ) (332 )
Attributable EBITDA *907* 1,068 851
Revenues - as adjusted^e *2,222* 2,514 2,188
Attributable EBITDA margin^f *41* *%* 42 % 39 %
a. Finance costs exclude accretion.
b. For the three month period ended March 31, 2024, net impairment charges were mainly related to miscellaneous property, plant and equipment assets. For the three month period ended December 31, 2023, net impairment charges mainly related to a long-lived asset impairment at Long Canyon.
c. For the three month period ended December 31, 2023, acquisition/disposition gains mainly related to a gain on the reopening of the Porgera mine as the conditions for the reopening were completed on December 22, 2023.
d. For the three month periods ended March 31, 2024 and December 31, 2023, other (income) expense adjustments mainly related to changes in the discount rate assumptions on our closed mine rehabilitation provision. The three month period ended December 31, 2023 was further impacted by care and maintenance expenses at Porgera. Other (income) expense adjustments for the three month period ended March 31, 2023 mainly related to the $30 million commitment we made towards the expansion of education infrastructure in Tanzania, per our community investment obligations under the Twiga partnership.
e. Refer to Reconciliation of Sales to Realized Price per ounce/pound on page 67 of Barrick’s Q1 2024 MD&A.
f. Represents attributable EBITDA divided by revenues - as adjusted.
*Endnote 3*
On an attributable basis.
*Endnote 4*
“Realized price” is a non-GAAP financial performance measure which excludes from sales: treatment and refining charges; and cumulative catch-up adjustment to revenue relating to our streaming arrangements. We believe this provides investors and analysts with a more accurate measure with which to compare to market gold and copper prices and to assess our gold and copper sales performance. For those reasons, management believes that this measure provides a more accurate reflection of our company’s past performance and is a better indicator of its expected performance in future periods. The realized price measure is intended to provide additional information, and does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of sales as determined under IFRS. Other companies may calculate this measure differently. The following table reconciles realized prices to the most directly comparable IFRS measure. Further details on these non-GAAP financial performance measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.
*Reconciliation of Sales to Realized Price per ounce/pound*
($ millions, except per ounce/pound information in dollars) Gold Copper For the three months ended *3/31/24* 12/31/23 3/31/23 *3/31/24* 12/31/23 3/31/23
Sales *2,528* 2,767 2,411 *163* 226 171
Sales applicable to non-controlling interests *(795* *)* (872 ) (723 ) **
Sales applicable to equity method investments^a,b *151* 183 126 *136* 168 160
Sales applicable to sites in closure or care and maintenance^c *(2* *)* (2 ) (7 ) **
Treatment and refinement charges *7* 8 7 *34* 51 43
Other^d ** (15 ) **
Revenues – as adjusted *1,889* 2,069 1,814 *333* 445 374
Ounces/pounds sold (000s ounces/millions pounds)^c *910* 1,042 954 *86* 117 89
Realized gold/copper price per ounce/pound^e *2,075* 1,986 1,902 *3.86* 3.78 4.20
a. Represents sales of $151 million, for the three month period ended March 31, 2024 (December 31, 2023: $183 million and March 31, 2023: $126 million) applicable to our 45% equity method investment in Kibali for gold. Represents sales of $80 million for the three month period ended March 31, 2024 (December 31, 2023: $98 million and March 31, 2023: $98 million) applicable to our 50% equity method investment in Zaldívar and $62 million (December 31, 2023: $77 million and March 31, 2023: $69 million), applicable to our 50% equity method investment in Jabal Sayid for copper.
b. Sales applicable to equity method investments are net of treatment and refinement charges.
c. On an attributable basis. Excludes Pierina, which was producing incidental ounces until December 31, 2023 while in closure. It also excludes Long Canyon which is producing residual ounces from the leach pad while in care and maintenance.
d. Represents a cumulative catch-up adjustment to revenue relating to our streaming arrangements. Refer to note 2e of the 2023 Annual Financial Statements for more information.
e. Realized price per ounce/pound may not calculate based on amounts presented in this table due to rounding.
*Endnote 5*
Net earnings represents net earnings attributable to the equity holders of the Company.
*Endnote 6*
“Free cash flow” is a non-GAAP financial measure that deducts capital expenditures from net cash provided by operating activities. Management believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Free cash flow is intended to provide additional information only and does not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate this measure differently. Further details on this non-GAAP financial performance measure are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. The following table reconciles this non-GAAP financial measure to the most directly comparable IFRS measure.
*Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow*
($ millions) For the three months ended *3/31/24* 12/31/23 3/31/23
Net cash provided by operating activities *760* 997 776
Capital expenditures *(728* *)* (861 ) (688 )
Free cash flow *32* 136 88
*Endnote 7*
These amounts are presented on the same basis as our guidance. Minesite sustaining capital expenditures and project capital expenditures are non-GAAP financial measures. 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*
($ millions) For the three months ended *3/31/24* 12/31/23 3/31/23
Minesite sustaining capital expenditures *550* 569 454
Project capital expenditures *165* 278 226
Capitalized interest *13* 14 8
Total consolidated capital expenditures *728* 861 688
*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 basi