Tous les montants exprimés en dollars américains
TORONTO, 10 août 2020 (GLOBE NEWSWIRE) – À mi-parcours de l'année, Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) était sur la bonne voie pour atteindre une production annuelle dans sa fourchette de prévisions pour 2020, malgré l'impact du Covid -19 pandémie, a déclaré la société aujourd'hui.
Les résultats du deuxième trimestre montrent une production d'or depuis le début de l'année de 2,4 millions d'onces, au milieu de ses prévisions annuelles de 4,6 millions à 5 millions d'onces, tirée par de solides performances d'exploitation, en particulier de Nevada Gold Mines (NGM) aux États-Unis , Loulo-Gounkoto au Mali et Kibali en République démocratique du Congo. Le portefeuille de cuivre de Barrick a continué de surperformer, Lumwana en Zambie affichant sa meilleure production trimestrielle depuis des années.
Le flux de trésorerie d'exploitation a dépassé 1 milliard de dollars pour le trimestre et le flux de trésorerie disponible1 était de 522 millions de dollars. Le bénéfice net par action était de 20 cents. Bénéfice net ajusté par action2 était de 23 cents, en hausse de 44% par rapport au premier trimestre et bien en avance sur le consensus du marché, la dette nette de trésorerie a été réduite de près de 25% à 1,4 milliard de dollars depuis la fin du premier trimestre et le dividende trimestriel a été augmenté de 14% à 8 cents par action . Le dividende trimestriel a plus que doublé depuis l'annonce de la fusion entre Barrick et Randgold en septembre 2018. La stratégie de cession d'actifs non stratégiques, qui est en cours, a jusqu'à présent généré une valeur de 1,5 milliard de dollars, dont 1,25 milliard de dollars en espèces.
Performance clé
Indicateurs
- Le maintien d'une solide performance positionne Barrick bien dans les prévisions de production annuelle, malgré les défis de Covid-19
- Amélioration de la gestion de la sécurité suite à une concentration accrue
- Une forte génération de trésorerie met en évidence la qualité des actifs et l'effet de levier sur le prix de l'or
- Barrick continue d'être vigilant dans son approche pour contenir l'impact de Covid-19
- Des prix de l'or plus élevés entraînent également des paiements de redevances et des coûts plus élevés
- Excellentes performances d'exploitation pour le cuivre avec des coûts par livre à l'extrémité inférieure de la plage de guidage
- Flux de trésorerie d'exploitation supérieur à 1,0 milliard de dollars et flux de trésorerie disponible1 supérieur à 0,5 milliard de dollars pour le trimestre
- Dette nette en baisse de près de 25% à 1,4 milliard de dollars sans échéances importantes jusqu'en 2033
- Bénéfice net par action de 20 cents; bénéfice net ajusté par action2 en hausse de 44% à 23 cents pour le trimestre
- Forte performance opérationnelle de Tier One12 actifs, la production de Pueblo Viejo étant impactée par l'arrêt prévu pour maintenance
- La production de Veladero affectée par le mouvement Covid-19 de l'Argentine et les restrictions de distanciation sociale
- 30% du concentré stocké expédié de Tanzanie et les premiers 100 millions de dollars versés au gouvernement
- Accord conclu au Mali pour prolonger la convention de Loulo jusqu'en 2038
- Résultats de forage d'exploration importants au Nevada, en République dominicaine, au Mali et en Tanzanie
- L'expansion de Pueblo Viejo, le développement de Goldrush, le puits Turquoise Ridge et d'autres projets clés restent sur la bonne voie malgré les défis de Covid-19
- La stratégie de cession d'actifs non essentiels permet de réaliser une valeur de 1,5 milliard de dollars, dont 1,25 milliard de dollars en espèces, et d'autres à venir
- Barrick augmente son dividende trimestriel de 14% à 0,08 $ par action
Faits saillants financiers et opérationnels
Résultats financiers | T2 2020 | T1 2020 | T2 2019 |
Prix de l'or réalisé3,4 ($ l'once) |
1 725 | 1 589 | 1 317 |
Bénéfice net5 (en millions de dollars) |
357 | 400 | 194 |
Bénéfice net ajusté2 (en millions de dollars) |
415 | 285 | 154 |
Trésorerie nette provenant des activités opérationnelles (en millions de dollars) |
1 031 | 889 | 434 |
Libre circulation des capitaux1 (en millions de dollars) |
522 | 438 | 55 |
Bénéfice net par action ($) |
0,20 | 0,22 | 0,11 |
Bénéfice net ajusté par action2 ($) |
0,23 | 0,16 | 0,09 |
Dépenses en capital attribuables6 (en millions de dollars) |
402 | 364 | 361 |
Résultats d'exploitation | T2 2020 | T1 2020 | T2 2019 |
Or | |||
Production4 (Milliers d'onces) |
1 149 | 1 250 | 1 353 |
Coût des ventes (part de Barrick)4,7 ($ l'once) |
1 075 | 1 020 | 964 |
Total des coûts décaissés4,8 ($ l'once) |
716 | 692 | 651 |
Coûts de maintien tout compris4,8 ($ l'once) |
1 031 | 954 | 869 |
Cuivre | |||
Production9 (millions de livres) |
120 | 115 | 97 |
Coût des ventes (part de Barrick)9,10 ($ par livre) |
2,08 | 1,96 | 2,04 |
Coûts décaissés C18,9 ($ par livre) |
1,55 | 1,55 | 1,59 |
Coûts de maintien tout compris8,9 ($ par livre) |
2,15 | 2,04 | 2,28 |
Le président et chef de la direction, Mark Bristow, a déclaré que la forte génération de trésorerie avait démontré la qualité des actifs de Barrick, la capacité de la direction à tirer pleinement parti de la hausse des prix de l’or, une exécution opérationnelle efficace et la gestion habile du groupe de l’impact de la pandémie de Covid-19.
«Notre structure de gestion aplatie et décentralisée a été un facteur majeur dans la lutte contre Covid-19 tout en continuant à atteindre les objectifs à court terme et en faisant des progrès significatifs vers nos objectifs stratégiques. Nos grands projets, y compris l'agrandissement de Pueblo Viejo, le développement Goldrush et le puits Turquoise Ridge, restent sur la bonne voie. La seule exception était Veladero, où les projets de lixiviation en tas et de lignes électriques transfrontalières chiliennes ont été touchés par les restrictions de quarantaine pandémique du gouvernement argentin », a déclaré Bristow.
«Nous avons également maintenu notre forte concentration environnementale, sociale et de gouvernance pendant cette période difficile. Le taux de fréquence des accidents avec arrêt de travail a diminué de 15,6% en rythme trimestriel, et nous avons encore réduit nos émissions de carbone et continué à améliorer nos performances de recyclage et de réutilisation de l'eau. »
En ce qui concerne les opérations, a déclaré Bristow en Amérique du Nord, NGM dirigé par Cortez tendait vers l'extrémité supérieure de ses directives, car la structure intégrée permettait à l'équipe de direction d'ajuster le routage du minerai à travers les installations de traitement de Carlin en temps réel, alors qu'il se trouvait à Hemlo restructuré au Canada. , l'exploration indiquait un soutien pour prolonger la durée de vie de la mine au-delà de 10 ans à un profil de production d'environ 220 000 onces par année.
Dans la région de l'Afrique et du Moyen-Orient, Loulo-Gounkoto et Kibali étaient également à l'extrémité supérieure de leurs orientations. Les actifs tanzaniens sont toujours en cours de réanimation, mais les exportations du concentré stocké ont repris et l'exploitation souterraine de Bulyanhulu est remise en service. Bristow a déclaré qu'entre eux, North Mara et Bulyanhulu étaient capables de produire plus de 500 000 onces par an pendant au moins 10 ans.13
En Amérique latine, la production de Pueblo Viejo a baissé comme prévu en raison d'un arrêt prévu pour maintenance de l'usine, tandis que la production et les coûts à Veladero ont été affectés par une quarantaine à l'échelle nationale et des conditions hivernales rigoureuses.
Porgera en Papouasie-Nouvelle-Guinée reste aux soins et à l'entretien tandis que la question de son bail minier spécial est devant le tribunal.
Bristow a déclaré qu'au cours du trimestre, il y avait eu des résultats d'exploration importants au Nevada, en République dominicaine, au Mali et en Tanzanie, et que l'on s'attendait à ajouter des ressources minérales importantes dans la plupart des opérations cette année.
Présentation des résultats du T2 2020
Webinaire et conférence téléphonique
Le président et chef de la direction, Mark Bristow, animera un webinaire interactif sur les résultats aujourd'hui à 11 h HAE / 15 h UTC. La présentation sera liée au webinaire et à la conférence téléphonique.
- Aller au webinaire
États-Unis et Canada (sans frais) 1800319 4610
Royaume-Uni (appel gratuit) 0808101 2791
International (payant) +1416915 3239
Le matériel de présentation du T2 2020 sera disponible sur le site Web de Barrick à www.barrick.com et le webinaire restera sur le site Web pour une consultation ultérieure.
DIVIDENDE TRIMESTRIEL AUGMENTÉ DE 14%
Le conseil d'administration de Barrick a déclaré un dividende pour le deuxième trimestre de 2020 de 0,08 $ par action, une augmentation de 14% par rapport au dividende du trimestre précédent, payable le 15 septembre 2020, aux actionnaires inscrits à la fermeture des bureaux le 31 août 2020 .14
Le vice-président exécutif principal et directeur financier, Graham Shuttleworth, a déclaré que le dividende trimestriel de Barrick avait plus que doublé depuis l'annonce de la fusion Barrick-Randgold en septembre 2018, reflétant la solide performance financière de Barrick.
«Le conseil estime que l'augmentation du dividende est durable et reflète la solide performance continue de nos opérations et l'amélioration continue de la solidité de notre bilan, avec une liquidité totale de 6,7 milliards de dollars, y compris un solde de trésorerie de 3,7 milliards de dollars à la fin du deuxième trimestre, et aucun remboursement de dette important dû avant 2033 », a déclaré Shuttleworth.
UNE STRUCTURE FORTE, UNE CULTURE DE PARTENARIAT POUR UNE RÉPONSE RAPIDE ET EFFICACE AUX PANDÉMIES
Une structure de gestion adaptée aux besoins, associée à son engagement profondément ancré en matière de santé et de bien-être, a permis à Barrick d'atténuer l'impact de la pandémie de Covid-19 sur ses activités, ses habitants et ses communautés, ainsi que de fournir un soutien vital à ses gouvernements hôtes.
Le président et chef de la direction, Mark Bristow, a déclaré que la formation de gestion aplatie et décentralisée au niveau régional offrait la plate-forme idéale pour une action immédiate adaptée au site et un engagement rapide avec les parties prenantes locales.
«Prendre soin du bien-être de nos employés et de nos communautés est une caractéristique clé de l'ADN de Barrick. Notre solidité financière, nos pratiques et procédures de prévention bien établies et l'expérience que nous avons acquise en faisant face à deux pandémies d'Ebola autour de nos opérations africaines nous ont bien aidés face à ce nouveau défi sans précédent », dit-il.
«Sur tous nos sites, des mesures strictes d'accès, de dépistage, d'assainissement et d'isolement ont été mises en œuvre et, grâce à nos canaux d'engagement communautaire, nous avons également pris les devants en introduisant ces protocoles, soutenus par des programmes d'éducation, à nos voisins. La fourniture de kits de dépistage rapide des anticorps aux cliniques et aux hôpitaux locaux a été particulièrement utile pour les aider à gérer l’attaque initiale de la pandémie. »
Grant Beringer, responsable de la durabilité du groupe de Barrick, a déclaré qu'à ce jour, la société a fourni plus de 20 millions de dollars en soutien à ses communautés d'accueil, une grande partie sous forme de fournitures et d'équipements médicaux. En outre, certaines de ses entreprises ont des taxes prépayées pour alléger la pression de la pandémie sur les économies de leurs pays d’accueil.
En République dominicaine, Pueblo Viejo a prépayé 113 millions de dollars aux autorités fiscales, portant le total de ses paiements d'impôts au gouvernement à plus de 2 milliards de dollars depuis 2013. Au Mali, le complexe de Loulo-Gounkoto a effectué un paiement anticipé d'impôts et de redevances de 20 millions de dollars et en Côte d'Ivoire, Tongon a prépayé 5 millions de dollars. Au Nevada, la législature de l'État a approuvé une offre de Nevada Gold Mines (NGM) de prépayer la taxe sur le produit net en tant que mesure d'allégement Covid-19. Dans le cadre de cet arrangement, NGM prévoit de verser 170 millions de dollars à l'État d'ici mars 2021. De plus, NGM a choisi de ne pas prendre l'option de reporter les paiements de charges sociales s'élevant à 40 millions de dollars. Le report de ces paiements est autorisé en vertu de la législation américaine visant à soutenir les entreprises pendant la pandémie.
«Nous reconnaissons l’importance que notre contribution fiscale apporte à l’économie du Nevada et NGM s’engage à soutenir l’État à un moment où d’autres entreprises se trouvent en difficulté financière», déclare Bristow.
«Au Nevada, comme ailleurs dans nos opérations mondiales, notre aide n’a pas été motivée par des considérations commerciales intéressées, mais par la philosophie fondamentale de partenariat de Barrick, qui en cette période de crise a de nouveau démontré sa valeur à nos parties prenantes.»
Beringer note que Barrick opère dans 12 pays, chacun avec sa propre culture et à différents stades de développement économique. Par conséquent, l'aide a été adaptée à leurs besoins particuliers en consultation avec leurs gouvernements.
«En Amérique latine, le soutien s'est concentré sur les besoins en infrastructures et en équipements. En Afrique, l'accent a été mis sur l'amélioration des installations et des capacités de santé existantes. Lorsque des dons financiers ont été faits, nous nous sommes engagés à fond avec les gouvernements pour identifier les besoins spécifiques et les avons aidés à se procurer du matériel et des fournitures. En RDC, nous avons converti le centre d’isolement Ebola de Kibali en un centre de traitement Covid-19 pour 100 patients, adapté aux directives gouvernementales. En Amérique du Nord, nous avons cherché à stimuler les économies locales, par exemple en faisant don de bons aux employés qui ne sont échangeables que dans les magasins et les fournisseurs de services de la communauté locale. NGM a également créé un fonds pour aider les entreprises locales touchées par la pandémie », dit-il.
«Les engagements pris par nos sites en matière d’investissement et de développement communautaires avant l’épidémie de Covid-19 demeurent intacts et sont remplis en conjonction avec nos programmes de soutien en cas de pandémie. Celles-ci incluent des projets majeurs tels que la route de Durba en RDC et le passage à des entrepreneurs et fournisseurs locaux en Tanzanie. »
Au niveau du groupe, tous les projets d’expansion importants de Barrick restent sur la bonne voie, les équipes internes ayant été formées pour réduire le recours à des sous-traitants externes. Parmi ceux-ci figurent les programmes d'énergie solaire en Afrique de l'Ouest et au Nevada, l'expansion de Pueblo Viejo en République dominicaine, le projet souterrain Bulyanhulu en Tanzanie et les développements de Goldrush et Turquoise Ridge au Nevada.
TANZANIE MINES FOCUS SUR LES LICENCES SOCIALES ET LES OPÉRATIONS MINIÈRES DE RECONSTRUCTION
Lorsque Barrick a repris les actifs d'Acacia en Tanzanie en septembre de l'année dernière, il a été confronté à un nettoyage aux proportions herculéennes:
- Les relations entre l'ancienne direction et le gouvernement ainsi que la communauté s'étaient complètement rompues.
- North Mara avait été fermé en vertu d'une ordonnance de protection de l'environnement.
- Bulyanhulu avait été envahi par quelque 20 000 mineurs illégaux et n’était plus en activité.
- Le gouvernement avait gelé toutes les ventes de concentrés ainsi que les conteneurs de concentrés détenus sous ordonnance du tribunal au port.
- Il y a eu des centaines de griefs de longue date, des conflits de propriété et des accusations de violations des droits de l'homme dans les mines.
- Aucune modélisation de blocs géologiques, aucune gestion des ressources minérales ou aucune planification minière n’avait été effectuée dans les mines.
- Les données de l'enquête étaient significativement incorrectes, et l'allocation du capital ainsi que la prise de décision de la direction étaient au mieux aléatoires.
La première priorité du directeur des opérations pour l'Afrique et le Moyen-Orient Willem Jacobs et son équipe était de regagner la confiance du gouvernement, ce qu'ils ont fait avec tant de succès que l'accord-cadre qui était dans les limbes depuis des années, a été rapidement finalisé et signé lors d'une cérémonie. en présence du président tanzanien John Magufuli et du président-directeur général de Barrick, Mark Bristow. Cela a été suivi par la création de Twiga Minerals Corporation, une coentreprise entre Barrick et le gouvernement conçue pour superviser la gestion des mines ainsi que le partage égal des avantages économiques qu'elles créent.
Fortement aidés par le conseil d'administration de Twiga, Barrick et les communautés touchées se sont rapidement mis d'accord sur une voie à suivre pour régler toutes les revendications territoriales héritées de North Mara.
L’ADN de Barrick a été infusé en Tanzanie avec l’introduction du personnel clé de ses opérations au Mali, après le changement de tous, sauf deux, de l’ancienne direction.
Sur le plan opérationnel, l'équipe a élaboré et mis en œuvre un nouveau plan de gestion des résidus et de l'eau pour North Mara. La mine pourrait alors reprendre la production et l'interdiction de vendre du doré a été levée. Se familiariser avec la géologie, un nouveau modèle de bloc qui a confirmé les hypothèses d'acquisition et les avantages, a été achevé. Dix nouveaux permis d'exploration autour de North Mara ont également été attribués par le gouvernement.
Une étude sur le redémarrage de la mine de Bulyanhulu prévoyait la reprise des activités minières souterraines à la fin de 2020, conformément aux orientations. Les travaux sur l'intégrité structurelle de l'usine métallurgique ont commencé à la fin de la transaction Acacia, et la rénovation du puits devrait débuter en août.
Une autre étude visant à déterminer les extensions à Buzwagi est en cours et un plan de contenu local a été soumis au gouvernement.
Mark Bristow dit que d'énormes progrès ont été accomplis dans la résolution de la situation tanzanienne, notamment en se concentrant sur l'engagement des parties prenantes et les relations communautaires de Barrick, en mettant l'accent sur la construction d'une véritable licence sociale sur ce qui était gravement négligé mais des atouts de classe mondiale.
«Les bases ont été jetées pour la livraison, et je peux voir North Mara et Bulyanhulu ensemble finir par se classer au rang un12 complexe, avec une production annuelle de plus de 500 000 onces à un coût dans la moitié inférieure de la courbe de l'industrie, bien au-delà de 10 ans », dit-il.
CORTEZ MONTRE LA VOIE AU NEVADA
Cortez continue de produire des onces plus élevées que prévu à un coût inférieur, confirmant son statut de fleuron de Nevada Gold Mines ainsi que de chef de file dans le passage général d’exploitations à ciel ouvert de moindre qualité à une exploitation souterraine à plus haute teneur.
Sa surperformance est tirée par l'exploitation souterraine, où l'amélioration de l'efficacité a soutenu l'exploitation minière à des taux de production plus élevés. Fort de cette performance, l'équipe de gestion des ressources minérales a intensifié son jeu pour tester les extensions géologiques et les sources potentielles de la minéralisation connue qui pourraient prolonger considérablement la durée de vie de la mine, lui permettant de maintenir son statut de premier rang sans l'aide. de Goldrush.
Au cours du dernier trimestre, l'équipe du projet Goldrush a été intégrée à l'organisation Cortez. Le développement des déclins de Goldrush est en avance sur le plan et la transition de l'exploitation de l'entrepreneur à l'exploitation du propriétaire a été avancée à 2020. L'équipe de gestion souterraine développe actuellement la préparation opérationnelle pour l'accélération du projet, qui devrait exposer le premier minerai dans la première moitié de 2021. Les permis sont attendus à la fin de 2021, ouvrant la voie au début des activités de construction finales qui, selon Greg Walker, directeur général exécutif, garantiront en outre que les opérations de Cortez restent une longue durée de vie, complexe de niveau 1, l'une des trois opérations de ce type dans le Portefeuille Nevada Gold Mines.
Entre-temps, le projet Fourmile de Barrick, à proximité, qui n’a pas encore été inclus dans le portefeuille de Nevada Gold Mines, a rapporté des résultats de forage très importants confirmant l'impressionnante haute teneur de la minéralisation ainsi que son potentiel futur excitant.
L’EXPLORATION MAINTIENT LA CONCENTRATION DE BARRICK SUR L’AVENIR
Malgré les défis posés par la pandémie de Covid-19, les équipes d’exploration de Barrick ont continué d’ajouter à l’inventaire minéral nécessaire pour soutenir une entreprise minière rentable.
Au cours du dernier trimestre, des résultats de forage importants ont été obtenus dans toutes les régions. Au Nevada, ceux-ci comprenaient les intersections à haute teneur du projet Fourmile, la plus haute intersection jamais vue à North Leeville et les intersections épaisses à Deep Post.
À Pueblo Viejo, en République dominicaine, le premier modèle structurel et la géophysique de pointe ont débloqué une nouvelle génération de cibles, et à Loulo 3, au Mali, de nouvelles intersections ont confirmé que la minéralisation à haute teneur est toujours ouverte. plonger. Toujours à Loulo, la zone de transfert à haute teneur de Yalea a été étendue de 480 mètres au-delà du modèle de bloc 2019 et est toujours ouverte en plongée. Une tendance minéralisée de plus d'un kilomètre de long a été confirmée au sud de la mine à ciel ouvert de Gounkoto, également au Mali.
Au cours du trimestre, les équipes d'exploration en Afrique et au Moyen-Orient (AME) ainsi qu'en Amérique latine (LATAM) ont été renforcées avec la nomination de cadres supérieurs, Aoife McGrath comme vice-président exploration pour AME et Leandro Sastre comme vice-président exploration pour LATAM .
McGrath a travaillé avec et dirigé des équipes d'exploration en Afrique, en Amérique du Nord et du Sud et en Europe, et son expérience couvre tout le spectre de la taille de l'entreprise et des étapes d'exploration. Nommée parmi les «100 femmes inspirantes du monde minier», elle a été impliquée dans un certain nombre de découvertes majeures et apporte de solides compétences commerciales à son nouveau rôle.
Sastre était auparavant directeur des opérations minières et des services techniques chez Veladero. Sa vaste base de compétences va de l'exploration au contrôle du minerai en passant par la modélisation des ressources. Il a été étroitement impliqué dans la découverte et la délimitation par Exeter du gisement Caspiche au Chili, qui fait maintenant partie de notre projet Norte Abierto, et du gisement Cerro Moro en Argentine, qui est maintenant une mine en exploitation.
RECRUTER ET DÉVELOPPER UNE NOUVELLE GÉNÉRATION DE LEADERS
Barrick emploie plus de 20 000 personnes ainsi que 21 000 sous-traitants dans 12 pays à travers le monde, et ses politiques de recrutement et de développement sont conçues pour s'assurer qu'ils peuvent être les meilleurs parmi les meilleurs.
L'entreprise a une forte tradition d'embauche localement pour des rôles opérationnels et de gestion. Dans sa région Afrique et Moyen-Orient (AME), 76% des postes de direction sont occupés par des ressortissants du pays hôte. En Amérique du Nord (NA), ce chiffre est de 88% et en Amérique latine et en Asie-Pacifique (LATAM & AP), il est de 51%. Le trimestre dernier, seuls 10 ressortissants étrangers ont été embauchés à des postes de direction dans les trois régions.
Pour s'assurer que son profil de personnel est aligné sur les changements sociétaux et technologiques, Barrick stimule également l'emploi de jeunes candidats ainsi que de femmes. Depuis le début de l'année, les pourcentages de nouveaux employés de moins de 30 ans étaient de 50% dans AME, 46% en Amérique du Nord et 42% en LATAM et AP.
L'exploitation minière est traditionnellement une industrie dominée par les hommes et Barrick fait un effort déterminé pour recruter plus de femmes grâce à des campagnes ciblées. En Amérique du Nord, 15% des employés sont des femmes et 25% des nouvelles recrues jusqu'à présent cette année étaient des femmes. Dans LATAM & AP, où 11% de tous les postes sont occupés par des femmes, les taux de recrutement étaient de 18% au premier trimestre et de 33% au deuxième trimestre, ce qui reflète l’amélioration de la capacité de la région à trouver et à employer des candidates. La région AME a des obstacles culturels à l'emploi des femmes, mais là aussi la situation s'améliore, avec de nouveaux placements jusqu'à 10% sur une base de 6%.
Chaque région a identifié des femmes à fort potentiel pour un développement de carrière à tous les niveaux de l'entreprise. Barrick s'est également associé à des universités de premier plan pour personnaliser des programmes de développement conçus pour répondre à ses besoins spécifiques.
En Amérique du Nord, 40% des participants actuels au programme de talents Greenfields de Barrick sont des femmes, qui passent 12 mois à travailler dans un environnement opérationnel, puis dirigent une équipe pendant six mois en tant que superviseur des secours avant de prendre leurs fonctions techniques chez Nevada Gold Mines. Le programme de développement Compass de la société propose des modules interfonctionnels allant de la géologie à la production en passant par la santé et la sécurité. Parmi le groupe actuel de participants à ce programme, 36% sont des femmes. À travers AME, Barrick offre une formation d'apprenti menant au statut d'artisan, et dans NA, Nevada Gold Mines est le principal participant au programme coopératif de formation à la maintenance avec le Great Basin College.
«Nous voulons avoir les bonnes compétences dans les bons emplois, mais nous voulons aussi nous assurer que nous avons une main-d’œuvre suffisamment diversifiée et qu’en investissant dans les jeunes, nous construisons une nouvelle génération de leaders pour faire avancer Barrick dans l’avenir. », Déclare le président et chef de la direction Mark Bristow.
PUEBLO VIEJO REMPORTE LE SCEAU D'OR POUR L'ÉGALITÉ DES GENRES
Le sceau d'or est le plus haut niveau d'une nouvelle certification d'égalité des sexes et il a été décerné à Pueblo Viejo (PV) à la suite d'un examen méticuleux par l'Institut dominicain pour la qualité (INDOCAL), le ministère de la Femme de la République dominicaine et le Programme des Nations Unies pour le développement ( PNUD). Dans le même temps, PV a également obtenu la certification Nordom 775 pour les meilleures pratiques en matière d'égalité et d'équité entre les sexes.
Les certifications reflètent l'engagement de PV en faveur de l'égalité des droits, des avantages et des chances pour tous les employés, quel que soit le sexe, et confirment que ses politiques sur le lieu de travail s'alignent sur les objectifs de développement durable des Nations Unies et la stratégie de développement national de la République dominicaine en ce qui concerne la réduction de l'écart de rémunération entre les hommes et les femmes. faire progresser la représentation des femmes aux postes de direction.
Annexe 1
Orientations sur les dépenses de fonctionnement et d'immobilisations pour 2020
PRODUCTION D'OR ET COÛTS | ||||
Prévisions 2020 production attribuable (Milliers d'onces) |
Coût prévisionnel 2020 Des ventes15 ($ / once) |
Total des prévisions 2020 coûts décaissés8 ($ / once) |
Prévisions 2020 tout compris coûts de maintien8 ($ / once) |
|
Carlin (61,5%)16 | 1 000 – 1 050 | 920 – 970 | 760 – 810 | 1 000 – 1 050 |
Cortez (61,5%) | 450 – 480 | 980 – 1 030 | 640 – 690 | 910 – 960 |
Turquoise Ridge (61,5%) | 430 – 460 | 900 – 950 | 540 – 590 | 690 – 740 |
Phénix (61,5%) | 100 – 120 | 1 850 – 1 900 | 700 – 750 | 920 – 970 |
Long Canyon (61,5%) | 130 – 150 | 910 – 960 | 240 – 290 | 450 – 500 |
Mines d'or du Nevada (61,5%) | 2 100 – 2 250 | 970 – 1 020 | 660 – 710 | 880 – 930 |
Hemlo | 200 – 220 | 960 – 1 010 | 800 – 850 | 1 200 – 1 250 |
Amérique du Nord | 2 300 – 2 450 | 970 – 1 020 | 660 – 710 | 900 – 950 |
Pueblo Viejo (60%) | 530 – 580 | 840 – 890 | 520 – 570 | 720 – 770 |
Veladero (50%) | 240 – 270 | 1 220 – 1 270 | 670 – 720 | 1 250 – 1 300 |
Porgera (47,5%)17 | ||||
Amérique latine et Asie-Pacifique | 800 – 900 | 930 – 980 | 610 – 660 | 890 – 940 |
Loulo-Gounkoto (80%) | 500 – 540 | 1 050 – 1 100 | 620 – 670 | 970 – 1 020 |
Kibali (45%) | 340 – 370 | 1 030 – 1 080 | 600 – 650 | 790 – 840 |
North Mara (84%)18 | 240 – 270 | 750 – 800 | 570 – 620 | 830 – 880 |
Tongon (89,7%) | 240 – 260 | 1 390 – 1 440 | 680 – 730 | 740 – 790 |
Bulyanhulu (84%)18 | 30 – 50 | 1 210 – 1 260 | 790 – 840 | 1 110 – 1 160 |
Buzwagi (84%)18 | 80 – 100 | 850 – 900 | 820 – 870 | 850 – 900 |
Afrique et Moyen-Orient | 1 450 – 1 600 | 1 040 – 1 090 | 640 – 690 | 870 – 920 |
Total attribuable à Barrick18,19,20 | 4 600 à 5 000 | 980 – 1 030 | 650 – 700 | 920 – 970 |
PRODUCTION ET COÛTS DU CUIVRE | ||||
Prévisions 2020 production attribuable (Mlbs) |
Coût prévisionnel 2020 Des ventes15 ($ / livre) |
Prévisions 2020 C1 coûts décaissés11($ / livre) |
Prévisions 2020 tout compris coûts de maintien11 ($ / livre) |
|
Lumwana | 250 – 280 | 2,20 – 2,40 | 1,50 – 1,70 | 2,30 – 2,60 |
Zaldívar (50%) | 120 – 135 | 2,40 – 2,70 | 1,65 – 1,85 | 2,30 – 2,60 |
Jabal Sayid (50%) | 60 – 70 | 1,75 – 2,00 | 1,40 – 1,60 | 1,50 – 1,70 |
Cuivre total21 | 440 – 500 | 2,10 – 2,40 | 1,50 – 1,80 | 2,20 – 2,50 |
DÉPENSES EN CAPITAL ATTRIBUABLES | ||||
(en millions de dollars) | ||||
Maintien du site minier attribuable | 1 300 – 1 500 | |||
Projet attribuable | 300 – 400 | |||
Total des dépenses en immobilisations attribuables22 | 1 600 – 1 900 |
Hypothèses de perspectives 2020 et analyse de sensibilité économique23
Orientation 2020 supposition |
Changement hypothétique | Impact sur l'EBITDA (des millions)24 |
Impact sur l'AISC8,11 | ||
Revenus aurifères, nets de redevances25 | 1 350 $ / once | + 100 $ / once | + 655 $ | + 4 $ / once | |
1 350 $ / once | – 100 $ / once | – 652 $ | – 4 $ / once | ||
Revenus du cuivre, nets de redevances | 2,75 $ / livre | +/- 0,50 $ / livre | + / – 125 $ | +/- 0,02 $ / livre |
Annexe 2
Résumé de la production et des coûts – Or
Pour les trois mois terminés | |||||||||||||||||||
30/06/20 | 31/03/20 | % Changement | 30/06/19 | % Changement | |||||||||||||||
Nevada Gold Mines LLC (61,5%)une | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 521 | 526 | (1 | ) | % | 526 | (1 | ) | % | ||||||||||
Or produit (base 100% en milliers d'onces) | 847 | 855 | (1 | ) | % | 548 | 55 | % | |||||||||||
Coût des ventes ($ / oz) | 1 055 | 995 | 6 | % | 842 | 25 | % | ||||||||||||
Total des coûts décaissés ($ / oz)b | 728 | 690 | 6 | % | 594 | 23 | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 985 | 952 | 3 | % | 752 | 31 | % | ||||||||||||
Carlin (61,5%)c | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 235 | 253 | (7 | ) | % | 181 | 30 | % | |||||||||||
Or produit (base 100% en milliers d'onces) | 382 | 411 | (7 | ) | % | 181 | 111 | % | |||||||||||
Coût des ventes ($ / oz) | 1 037 | 970 | 7 | % | 1 116 | (7 | ) | % | |||||||||||
Total des coûts décaissés ($ / oz)b | 850 | 776 | dix | % | 769 | 11 | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 1 130 | 1 007 | 12 | % | 1 088 | 4 | % | ||||||||||||
Cortez (61,5%)ré | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 132 | 128 | 3 | % | 280 | (53 | ) | % | |||||||||||
Or produit (base 100% en milliers d'onces) | 215 | 208 | 3 | % | 280 | (23 | ) | % | |||||||||||
Coût des ventes ($ / oz) | 870 | 876 | (1 | ) | % | 719 | 21 | % | |||||||||||
Total des coûts décaissés ($ / oz)b | 613 | 614 | 0 | % | 489 | 25 | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 950 | 1 009 | (6 | ) | % | 561 | 69 | % | |||||||||||
Turquoise Ridge (61,5%)e | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 79 | 84 | (6 | ) | % | 65 | 22 | % | |||||||||||
Or produit (base 100% en milliers d'onces) | 128 | 137 | (6 | ) | % | 87 | 47 | % | |||||||||||
Coût des ventes ($ / oz) | 1 073 | 1 032 | 4 | % | 665 | 61 | % | ||||||||||||
Total des coûts décaissés ($ / oz)b | 753 | 668 | 13 | % | 569 | 32 | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 829 | 806 | 3 | % | 667 | 24 | % | ||||||||||||
Phénix (61,5%)F | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 35 | 35 | 0 | % | |||||||||||||||
Or produit (en milliers d'onces à 100%) | 57 | 57 | 0 | % | |||||||||||||||
Coût des ventes ($ / oz) | 1 726 | 1 583 | 9 | % | |||||||||||||||
Total des coûts décaissés ($ / oz)b | 725 | 737 | (2 | ) | % | ||||||||||||||
Coûts de maintien tout compris ($ / oz)b | 957 | 914 | 5 | % | |||||||||||||||
Long Canyon (61,5%)F | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 40 | 26 | 54 | % | |||||||||||||||
Or produit (base 100% en milliers d'onces) | 65 | 42 | 54 | % | |||||||||||||||
Coût des ventes ($ / oz) | 1 009 | 1 025 | (2 | ) | % | ||||||||||||||
Total des coûts décaissés ($ / oz)b | 308 | 345 | (11 | ) | % | ||||||||||||||
Coûts de maintien tout compris ($ / oz)b | 430 | 561 | (23 | ) | % | ||||||||||||||
Pueblo Viejo (60%) | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 111 | 143 | (22 | ) | % | 124 | (dix | ) | % | ||||||||||
Or produit (base 100% en milliers d'onces) | 185 | 238 | (22 | ) | % | 207 | (dix | ) | % | ||||||||||
Coût des ventes ($ / oz) | 935 | 767 | 22 | % | 852 | dix | % | ||||||||||||
Total des coûts décaissés ($ / oz)b | 579 | 502 | 15 | % | 557 | 4 | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 720 | 626 | 15 | % | 702 | 3 | % | ||||||||||||
Loulo-Gounkoto (80%) | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 141 | 141 | 0 | % | 147 | (4 | ) | % | |||||||||||
Or produit (en milliers d'onces à 100%) | 176 | 177 | 0 | % | 184 | (4 | ) | % | |||||||||||
Coût des ventes ($ / oz) | 1 012 | 1 002 | 1 | % | 1 072 | (6 | ) | % | |||||||||||
Total des coûts décaissés ($ / oz)b | 639 | 614 | 4 | % | 598 | 7 | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 1 030 | 891 | 16 | % | 811 | 27 | % | ||||||||||||
Kibali (45%) | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 90 | 91 | (1) | % | 95 | (5 | ) | % | |||||||||||
Or produit (base 100% en milliers d'onces) | 201 | 201 | (1) | % | 211 | (5 | ) | % | |||||||||||
Coût des ventes ($ / oz) | 1 067 | 1 045 | 2 | % | 868 | 23 | % | ||||||||||||
Total des coûts décaissés ($ / oz)b | 617 | 582 | 6 | % | 540 | 14 | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 739 | 773 | (4) | % | 651 | 14 | % | ||||||||||||
Veladero (50%) | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 49 | 75 | (35) | % | 75 | (35 | ) | % | |||||||||||
Or produit (base 100% en milliers d'onces) | 98 | 150 | (35) | % | 150 | (35 | ) | % | |||||||||||
Coût des ventes ($ / oz) | 1 228 | 1 182 | 4 | % | 1 186 | 4 | % | ||||||||||||
Total des coûts décaissés ($ / oz)b | 801 | 788 | 2 | % | 746 | 7 | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 1 383 | 1 266 | 9 | % | 1 046 | 32 | % | ||||||||||||
Porgera (47,5%) | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 24 | 62 | (61) | % | 61 | (61 | ) | % | |||||||||||
Or produit (base 100% en milliers d'onces) | 51 | 131 | (61) | % | 128 | (61 | ) | % | |||||||||||
Coût des ventes ($ / oz) | 1 141 | 1 097 | 4 | % | 1 032 | 11 | % | ||||||||||||
Total des coûts décaissés ($ / oz)b | 875 | 941 | (7) | % | 893 | (2 | ) | % | |||||||||||
Coûts de maintien tout compris ($ / oz)b | 1 046 | 1 089 | (4) | % | 1 112 | (6 | ) | % | |||||||||||
Tongon (89,7%) | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 64 | 61 | 5 | % | 61 | 5 | % | ||||||||||||
Or produit (base 100% en milliers d'onces) | 71 | 68 | 5 | % | 68 | 5 | % | ||||||||||||
Coût des ventes ($ / oz) | 1 275 | 1 368 | (7) | % | 1 562 | (18 | ) | % | |||||||||||
Total des coûts décaissés ($ / oz)b | 688 | 762 | (dix) | % | 750 | (8 | ) | % | |||||||||||
Coûts de maintien tout compris ($ / oz)b | 745 | 788 | (5) | % | 802 | (7 | ) | % | |||||||||||
Hemlo | |||||||||||||||||||
Or produit (en milliers d'onces) | 54 | 57 | (5) | % | 55 | (2 | ) | % | |||||||||||
Coût des ventes ($ / oz) | 1 268 | 1 119 | 13 | % | 953 | 33 | % | ||||||||||||
Total des coûts décaissés ($ / oz)b | 1 080 | 945 | 14 | % | 822 | 31 | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 1 456 | 1 281 | 14 | % | 1 015 | 43 | % | ||||||||||||
North Mara (84%)g | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 68 | 65 | 5 | % | 76 | (11 | ) | % | |||||||||||
Or produit (base 100% en milliers d'onces) | 81 | 77 | 5 | % | 119 | (32 | ) | % | |||||||||||
Coût des ventes ($ / oz) | 1 040 | 959 | 8 | % | 800 | 30 | % | ||||||||||||
Total des coûts décaissés ($ / oz)b | 724 | 646 | 12 | % | 539 | 34 | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 1 166 | 816 | 43 | % | 675 | 73 | % | ||||||||||||
Buzwagi (84%)g | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 20 | 22 | (9) | % | 19 | 5 | % | ||||||||||||
Or produit (base 100% en milliers d'onces) | 24 | 27 | (9) | % | 30 | (20 | ) | % | |||||||||||
Coût des ventes ($ / oz) | 909 | 1 373 | (34) | % | 1 198 | (24 | ) | % | |||||||||||
Total des coûts décaissés ($ / oz)b | 751 | 1 275 | (41) | % | 1 099 | (32 | ) | % | |||||||||||
Coûts de maintien tout compris ($ / oz)b | 770 | 1 288 | (40) | % | 1 150 | (33 | ) | % | |||||||||||
Bulyanhulu (84%)g | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 7 |
7 | 0 | % | 6 | 17 | % | ||||||||||||
Or produit (en milliers d'onces à 100%) | 8 | 9 | 0 | % | 9 | (11 | ) | % | |||||||||||
Coût des ventes ($ / oz) | 1 658 | 1 685 | (2) | % | 1 217 | 36 | % | ||||||||||||
Total des coûts décaissés ($ / oz)b | 950 | 686 | 38 | % | 525 | 81 | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 1 014 | 906 | 12 | % | 666 | 52 | % | ||||||||||||
Kalgoorlie (50%)h | |||||||||||||||||||
Or produit (base attribuable en milliers d'onces) | 57 | (100 | ) | % | |||||||||||||||
Or produit (base 100% en milliers d'onces) | 114 | (100 | ) | % | |||||||||||||||
Coût des ventes ($ / oz) | 1 038 | (100 | ) | % | |||||||||||||||
Total des coûts décaissés ($ / oz)b | 846 | (100 | ) | % | |||||||||||||||
Coûts de maintien tout compris ($ / oz)b | 1 204 | (100 | ) | % | |||||||||||||||
Total attribuable à Barrickje | |||||||||||||||||||
Or produit (en milliers d'onces) | 1 149 | 1 250 | (8) | % | 1 353 | (15 | ) | % | |||||||||||
Coût des ventes ($ / oz)j | 1 075 | 1 020 | 5 | % | 964 | 12 | % | ||||||||||||
Total des coûts décaissés ($ / oz)b | 716 | 692 | 3 | % | 651 | dix | % | ||||||||||||
Coûts de maintien tout compris ($ / oz)b | 1 031 | 954 | 8 | % | 869 | 19 | % |
une. Représente les résultats combinés de Cortez, Goldstrike (y compris notre part de 60% dans South Arturo) et notre participation de 75% dans Turquoise Ridge jusqu'au 30 juin 2019. À compter du 1er juillet 2019, date de création de Nevada Gold Mines, les résultats représentent notre Participation de 61,5% dans Cortez, Carlin (y compris Goldstrike et 60% de South Arturo), Turquoise Ridge (y compris Twin Creeks), Phoenix et Long Canyon.
b. Il s'agit de mesures de la performance financière non conformes aux PCGR sans signification normalisée selon les IFRS et peuvent donc ne pas être comparables à des mesures similaires présentées par d'autres émetteurs. Pour plus d'informations et un rapprochement détaillé de chaque mesure non conforme aux PCGR utilisée avec la mesure IFRS la plus directement comparable, veuillez consulter les pages 79 à 103 de notre rapport de gestion du deuxième trimestre.
c. Le 1er juillet 2019, Barrick’s Goldstrike et Newmont’s Carlin ont été cédées à Nevada Gold Mines et sont maintenant appelées Carlin. As a result, the amounts presented represent Goldstrike on a 100% basis (including our 60% share of South Arturo) up until June 30, 2019, and the combined results of Carlin and Goldstrike (including NGM’s 60% share of South Arturo) on a 61.5% basis thereafter.
d. On July 1, 2019, Cortez was contributed to Nevada Gold Mines, a joint venture with Newmont. As a result, the amounts presented are on an 100% basis up until June 30, 2019, and on a 61.5% basis thereafter.
e. Barrick owned 75% of Turquoise Ridge through to the end of the second quarter of 2019, with our joint venture partner, Newmont, owning the remaining 25%. Turquoise Ridge was proportionately consolidated on the basis that the joint venture partners that have joint control have rights to the assets and obligations for the liabilities relating to the arrangement. The figures presented in this table are based on our 75% interest in Turquoise Ridge until June 30, 2019. On July 1, 2019, Barrick’s 75% interest in Turquoise Ridge as well as Newmont’s Twin Creeks and 25% interest in Turquoise Ridge were contributed to Nevada Gold Mines. Starting July 1, 2019, the results represent our 61.5% share of Turquoise Ridge and Twin Creeks, now referred to as Turquoise Ridge.
f. A 61.5% interest in these sites was acquired as a result of the formation of Nevada Gold Mines on July 1, 2019.
g. Formerly known as Acacia Mining plc. On September 17, 2019, Barrick acquired all of the shares of Acacia it did not own. Operating results are included at 100% from October 1, 2019 to December 31, 2019 (notwithstanding the completion of the Acacia transaction on September 17, 2019, we consolidated our interest in Acacia and recorded a non-controlling interest of 36.1% in the income statement for the entirety of the third quarter of 2019 as a matter of convenience), and on an 84% basis thereafter as the GoT’s 16% free-carried interest was made effective from January 1, 2020.
h. On November 28, 2019, we completed the sale of our 50% interest in Kalgoorlie in Western Australia to Saracen Mineral Holdings Limited for total cash consideration of $750 million. Accordingly, these represent our 50% interest until November 28, 2019.
i. Excludes Pierina; Lagunas Norte starting in the fourth quarter of 2019; and Golden Sunlight and Morila (40%) starting in the third quarter of 2019 which are producing incidental ounces as they reach the end of their mine lives.
j. Cost of sales per ounce (Barrick’s share) is calculated as gold cost of sales on an attributable basis (excluding sites in care and maintenance) divided by gold equity ounces sold.
Production and Cost Summary – Copper
For the three months ended | ||||||||||||
6/30/20 | 3/31/20 | % Change | 6/30/19 | % Change | ||||||||
Lumwana | ||||||||||||
Copper production (Mlbs) | 72 | 64 | 13 | % | 49 | 47 | % | |||||
Cost of sales ($/lb) | 2.06 | 1.94 | 6 | % | 2.07 | 0 | % | |||||
C1 cash costs ($/lb)une | 1.55 | 1.63 | (5 | ) | % | 1.70 | (9 | ) | % | |||
All-in sustaining costs ($/lb)une | 2.27 | 2.26 | 0 | % | 2.78 | (18 | ) | % | ||||
Zaldívar (50%) | ||||||||||||
Copper production (Mlbs attributable basis) | 28 | 31 | (10 | ) | % | 32 | (13 | ) | % | |||
Copper production (Mlbs 100% basis) | 56 | 62 | (10 | ) | % | 64 | (13 | ) | % | |||
Cost of sales ($/lb) | 2.52 | 2.39 | 5 | % | 2.32 | 9 | % | |||||
C1 cash costs ($/lb)une | 1.79 | 1.71 | 5 | % | 1.61 | 11 | % | |||||
All-in sustaining costs ($/lb)une | 2.09 | 1.99 | 5 | % | 1.85 | 13 | % | |||||
Jabal Sayid (50%) | ||||||||||||
Copper production (Mlbs attributable basis) | 20 | 20 | 0 | % | 16 | 25 | % | |||||
Copper production (Mlbs 100% basis) | 40 | 40 | 0 | % | 32 | 25 | % | |||||
Cost of sales ($/lb) | 1.41 | 1.28 | dix | % | 1.45 | (3 | ) | % | ||||
C1 cash costs ($/lb)une | 1.14 | 0.97 | 18 | % | 1.22 | (7 | ) | % | ||||
All-in sustaining costs ($/lb)une | 1.41 | 1.11 | 27 | % | 1.31 | 8 | % | |||||
Total Copper | ||||||||||||
Copper production (Mlbs attributable basis) | 120 | 115 | 4 | % | 97 | 24 | % | |||||
Cost of sales ($/lb)b | 2.08 | 1.96 | 6 | % | 2.04 | 2 | % | |||||
C1 cash costs ($/lb)une | 1.55 | 1.55 | 0 | % | 1.59 | (3 | ) | % | ||||
All-in sustaining costs ($/lb)une | 2.15 | 2.04 | 5 | % | 2.28 | (6 | ) | % |
a. These are non-GAAP financial performance measures with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information and a detailed reconciliation of each non-GAAP measure used to the most directly comparable IFRS measure, please see pages 79 to 103 of our second quarter MD&A.
b. Cost of sales per pound (Barrick’s share) is calculated as copper cost of sales plus our equity share of cost of sales attributable to Zaldívar and Jabal Sayid divided by copper pounds sold.
Technical Information
The scientific and technical information contained in this press release has been reviewed and approved by Steven Yopps, MMSA, Director – Metallurgy, North America; Craig Fiddes, SME-RM, Manager – Resource Modeling, Nevada Gold Mines; Chad Yuhasz, P.Geo, Mineral Resource Manager, Latin America and Asia Pacific; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral Resources Manager: Africa and Middle East; Rodney Quick, MSc, Pr. Sci.Nat, Mineral Resource Management and Evaluation Executive; John Steele, CIM, Metallurgy, Engineering and Capital Projects Executive; and Rob Krcmarov, FAusIMM, Executive Vice President, Exploration and Growth – 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, 2019.
Notes de fin
Endnote 1
“Free cash flow” is a non-GAAP financial performance measure which deducts capital expenditures from net cash provided by operating activities. Barrick believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other companies. Free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on this non-GAAP measure are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
($ millions) | For the three months ended | For the six months ended | ||||||||
6/30/20 | 3/31/20 | 6/30/19 | 6/30/20 | 6/30/19 | ||||||
Net cash provided by operating activities | 1,031 | 889 | 434 | 1,920 | 954 | |||||
Capital expenditures | (509) | (451) | (379) | (960) | (753) | |||||
Free cash flow | 522 | 438 | 55 | 960 | 201 |
Endnote 2
“Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial performance measures. Adjusted net earnings excludes the following from net earnings: certain impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and investments; gains (losses) and other one-time costs relating to acquisitions or dispositions; foreign currency translation gains (losses); significant tax adjustments not related to current period earnings; unrealized gains (losses) on non-hedge derivative instruments; and the tax effect and non-controlling interest of these items. The Company uses this measure internally to evaluate our underlying operating performance for the reporting periods presented and to assist with the planning and forecasting of future operating results. Barrick believes that adjusted net earnings is a useful measure of our performance because these adjusting items do not reflect the underlying operating performance of our core mining business and are not necessarily indicative of future operating results. Adjusted net earnings and adjusted net earnings per share are intended to provide additional information only and do not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on these non-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to Net Earnings per Share, Adjusted Net Earnings and Adjusted Net Earnings per Share
($ millions, except per share amounts in dollars) | For the three months ended | For the six months ended | ||||||||
6/30/20 | 3/31/20 | 6/30/19 | 6/30/20 | 6/30/19 | ||||||
Net earnings attributable to equity holders of the Company | 357 | 400 | 194 | 757 | 305 | |||||
Impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and investmentsune | 23 | (336) | 12 | (313) | 15 | |||||
Acquisition/disposition (gains) lossesb | 8 | (60) | (12) | (52) | (12) | |||||
Loss (gain) on currency translation | 2 | 16 | (6) | 18 | 16 | |||||
Significant tax adjustmentsc | (7) | (44) | (83) | (51) | (75) | |||||
Other expense adjustmentsré | 48 | 98 | 58 | 146 | 104 | |||||
Tax effect and non-controlling intereste | (16) | 211 | (9) | 195 | (15) | |||||
Adjusted net earnings | 415 | 285 | 154 | 700 | 338 | |||||
Net earnings per shareF | 0,20 | 0.22 | 0.11 | 0.43 | 0.17 | |||||
Adjusted net earnings per shareF | 0,23 | 0.16 | 0.09 | 0.39 | 0.19 |
- Net impairment charges for the three month period ended June 30, 2020 relate to miscellaneous assets. For the three month period ended March 31, 2020 and the six month period ended June 30, 2020, net impairment reversals primarily relate to non-current asset reversals at our Tanzanian assets.
- Acquisition/disposition gains for the three month period ended March 31, 2020 and the six month period ended June 30, 2020 primarily relate to the gain on the sale of Massawa.
- Significant tax adjustments for the three month period ended March 31, 2020 and the six month period ended June 30, 2020 primarily relate to deferred tax recoveries as a result of tax reform measures in Argentina and adjustments made in recognition of the net settlement of all outstanding disputes with the GoT. For the three and six month periods ended June 30, 2019, significant tax adjustments primarily relate to an adjustment to deferred taxes at Veladero. Refer to Note 10 to the Financial Statements for more information.
- Other expense adjustments for the three and six month period ended June 30, 2020 primarily relate to care and maintenance expenses at Porgera and Covid-19 donations. The six month period ended June 30, 2020 was further impacted by changes in the discount rate assumptions on our closed mine rehabilitation provision. For the three month period ended March 31, 2020, other expense adjustments primarily relate to the impact of changes in the discount rate assumptions on our closed mine rehabilitation provision and losses on debt extinguishment. Other expense adjustments for the three and six month periods ended June 30, 2019 primarily relate to severance costs as a result of the implementation of a number of organizational reductions, the impact of changes in the discount rate assumptions on our closed mine rehabilitation provision and transaction costs related to Nevada Gold Mines.
- Tax effect and non-controlling interest for the three month periods ended March 31, 2020 and December 31, 2019 primarily relates to the net impairment reversals related to long-lived assets.
- Calculated using weighted average number of shares outstanding under the basic method of earnings per share.
Endnote 3
“Realized price” is a non-GAAP financial measure which excludes from sales: unrealized gains and losses on non-hedge derivative contracts; unrealized mark-to-market gains and losses on provisional pricing from copper and gold sales contracts; sales attributable to ore purchase arrangements; treatment and refining charges; export duties; and cumulative catch-up adjustments to revenue relating to our streaming arrangements. This measure is intended to enable Management to better understand the price realized in each reporting period for gold and copper sales because unrealized mark-to-market values of non-hedge gold and copper derivatives are subject to change each period due to changes in market factors such as market and forward gold and copper prices, so that prices ultimately realized may differ from those recorded. The exclusion of such unrealized mark-to-market gains and losses from the presentation of this performance measure enables investors to understand performance based on the realized proceeds of selling gold and copper production. The realized price measure is intended to provide additional information and does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on these non-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Sales to Realized Price per ounce/pound
($ millions, except per ounce/pound information in dollars) | Gold | Cuivre | Gold | Cuivre | ||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||
6/30/20 | 3/31/20 | 6/30/19 | 6/30/20 | 3/31/20 | 6/30/19 | 6/30/20 | 6/30/19 | 6/30/20 | 6/30/19 | |||||||||||
Sales | 2,812 | 2,593 | 1,937 | 184 | 99 | 103 | 5,405 | 3,843 | 283 | 266 | ||||||||||
Sales applicable to non-controlling interests | (822) | (770) | (240) | 0 | 0 | 0 | (1,592) | (464) | 0 | 0 | ||||||||||
Sales applicable to equity method investmentsa,b | 172 | 147 | 135 | 120 | 107 | 124 | 319 | 264 | 227 | 245 | ||||||||||
Realized non-hedge gold/copper derivative (losses) gains | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | ||||||||||
Sales applicable to sites in care and maintenancec | (53) | (46) | (26) | 0 | 0 | 0 | (99) | (52) | 0 | 0 | ||||||||||
Treatment and refinement charges | 2 | 0 | 0 | 40 | 39 | 25 | 2 | 0 | 79 | 56 | ||||||||||
Autreré | 0 | 15 | 0 | 0 | 0 | 0 | 15 | 0 | 0 | 0 | ||||||||||
Revenues – as adjusted | 2,111 | 1,939 | 1,807 | 344 | 245 | 252 | 4,050 | 3,592 | 589 | 567 | ||||||||||
Ounces/pounds sold (000s ounces/millions pounds)c | 1,224 | 1,220 | 1,372 | 123 | 110 | 96 | 2,444 | 2,737 | 233 | 199 | ||||||||||
Realized gold/copper price per ounce/pounde | 1,725 | 1,589 | 1,317 | 2.79 | 2.23 | 2.62 | 1,657 | 1,312 | 2.53 | 2.85 |
- Represents sales of $164 million and $304 million, respectively, for the three and six month periods ended June 30, 2020 (March 31, 2020: $140 million and June 30, 2019: $125 million and $242 million, respectively) applicable to our 45% equity method investment in Kibali and $nil and nil, respectively, (March 31, 2020: $nil and June 30, 2019: $10 million and $22 million, respectively) applicable to our 40% equity method investment in Morila for gold. Represents sales of $78 million and $150 million, respectively, for the three and six months ended June 30, 2020 (March 31, 2020: $72 million and June 30, 2019: $86 million and $167 million, respectively) applicable to our 50% equity method investment in Zaldívar and $46 million and $86 million, respectively (March 31, 2020: $40 million and June 30, 2019: $44 million and $88 million, respectively) applicable to our 50% equity method investment in Jabal Sayid for copper.
- Sales applicable to equity method investments are net of treatment and refinement charges.
- Figures exclude: Pierina; Golden Sunlight and Morila starting in the third quarter of 2019; and Lagunas Norte starting in the fourth quarter of 2019, from the calculation of realized price per ounce as the mine is mining incidental ounces as it enters closure.
- Represents cumulative catch-up adjustment to revenue relating to our streaming arrangements. Refer to note 2f of the 2019 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 4
Includes North Mara, Bulyanhulu and Buzwagi on a 84% basis starting January 1, 2020 (and on a 63.9% basis from January 1, 2019 to September 30, 2019; notwithstanding the completion of the Acacia transaction on September 17, 2019, we consolidated our interest in Acacia and recorded a non-controlling interest of 36.1% in the income statement for the entirety of the third quarter of 2019 as a matter of convenience, and on a 100% basis from October 1, 2019 to December 31, 2019), Pueblo Viejo on a 60% basis, South Arturo on a 36.9% basis from July 1, 2019 onwards as a result of its contribution to Nevada Gold Mines (and on a 60% basis from January 1, 2019 to June 30, 2019), Veladero on a 50% basis, Loulo-Gounkoto on an 80% basis, Kibali on a 45% basis, Tongon on an 89.7% basis, and Morila on a 40% basis until the second quarter of 2019, which reflects our equity share of production and sales. Also removes the non-controlling interest of 38.5% Nevada Gold Mines from July 1, 2019 onwards.
Endnote 5
Net earnings (loss) represents net earnings (loss) attributable to the equity holders of the Company.
Endnote 6
These amounts are presented on the same basis as our guidance and include our 60% share of Pueblo Viejo, 80% share of Loulo-Gounkoto, 89.7% share of Tongon, 45% share of Kibali, 40% share of Morila and 60% share of South Arturo (36.9% of South Arturo from July 1, 2019 onwards as a result of its contribution to Nevada Gold Mines), our 84% share of Tanzania starting January 1, 2020 (63.9% share from January 1, 2019 to September 30, 2019; notwithstanding the completion of the Acacia transaction on September 17, 2019, we consolidated our interest in Acacia and recorded a non-controlling interest of 36.1% in the income statement for the entirety of the third quarter of 2019 as a matter of convenience, and 100% share from October 1, 2019 to December 31, 2019) and our 50% share of Zaldívar and Jabal Sayid. Starting July 1, 2019, it also includes our 61.5% share of Nevada Gold Mines.
Endnote 7
Gold cost of sales (Barrick’s share) is calculated as cost of sales – gold on an attributable basis (excluding sites in care and maintenance) divided by ounces sold.
Endnote 8
“Total cash costs” per ounce, “All-in sustaining costs” per ounce and “All-in costs” per ounce are non-GAAP financial performance measures. “Total cash costs” per ounce starts with cost of sales related to gold production but removes depreciation, the noncontrolling interest of cost of sales, and includes by product credits. “All-in sustaining costs” per ounce begin with “Total cash costs” per ounce and add further costs which reflect the expenditures made to maintain current production levels, primarily sustaining capital expenditures, sustaining leases, general & administrative costs, minesite exploration and evaluation costs, and reclamation cost accretion and amortization. “All-in costs” per ounce starts with “All-in sustaining costs” per ounce and adds additional costs that reflect the varying costs of producing gold over the life-cycle of a mine, including: project capital expenditures and other nonsustaining costs. Barrick believes that the use of “total cash costs” per ounce, “all-in sustaining costs” per ounce and “All-in costs” per ounce will assist investors, analysts and other stakeholders in understanding the costs associated with producing gold, understanding the economics of gold mining, assessing our operating performance and also our ability to generate free cash flow from current operations and to generate free cash flow on an overall Company basis. “Total cash costs” per ounce, “All-in sustaining costs” per ounce and “All-in costs” per ounce are intended to provide additional information only and do not have any standardized meaning under IFRS. Although a standardized definition of all-in sustaining costs was published in 2013 by the World Gold Council (a market development organization for the gold industry comprised of and funded by 25 gold mining companies from around the world, including Barrick), it is not a regulatory organization, and other companies may calculate this measure differently. Starting from the first quarter of 2019, we have renamed “cash costs” to “total cash costs” when referring to our gold operations. The calculation of total cash costs is identical to our previous calculation of cash costs with only a change in the naming convention of this non-GAAP measure. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Further details on these non-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Gold Cost of Sales to Total cash costs, All-in sustaining costs and All-in costs, including on a per ounce basis
($ millions, except per ounce information in dollars) | For the three months ended | For the six months ended | |||||||||
Footnote | 6/30/20 | 3/31/20 | 6/30/19 | 6/30/20 | 6/30/19 | ||||||
Cost of sales applicable to gold production | 1,740 | 1,643 | 1,437 | 3,383 | 2,787 | ||||||
Depreciation | (498) | (474) | (431) | (972) | (815) | ||||||
Cash cost of sales applicable to equity method investments | 62 | 52 | 62 | 114 | 124 | ||||||
By-product credits | (59) | (29) | (23) | (88) | (47) | ||||||
Realized (gains) losses on hedge and non-hedge derivatives | une | 1 | 0 | (1) | 1 | (1) | |||||
Non-recurring items | b | 0 | 0 | (9) | 0 | (29) | |||||
Autre | c | (26) | (27) | (26) | (53) | (46) | |||||
Non-controlling interests | ré | (336) | (316) | (112) | (652) | (213) | |||||
Total cash costs | 884 | 849 | 897 | 1,733 | 1,760 | ||||||
General & administrative costs | 71 | 40 | 59 | 111 | 113 | ||||||
Minesite exploration and evaluation costs | e | 23 | 15 | 12 | 38 | 23 | |||||
Minesite sustaining capital expenditures | F | 420 | 370 | 267 | 790 | 520 | |||||
Sustaining leases | dix | 0 | 8 | dix | 18 | ||||||
Rehabilitation – accretion and amortization (operating sites) | g | 12 | 14 | 16 | 26 | 30 | |||||
Non-controlling interest, copper operations and other | h | (158) | (125) | (76) | (283) | (151) | |||||
All-in sustaining costs | 1,262 | 1,163 | 1,183 | 2,425 | 2,313 | ||||||
Project exploration and evaluation and project costs | e | 55 | 56 | 86 | 111 | 149 | |||||
Community relations costs not related to current operations | 0 | 1 | 0 | 1 | 1 | ||||||
Project capital expenditures | F | 85 | 76 | 108 | 161 | 228 | |||||
Rehabilitation – accretion and amortization (non-operating sites) | g | 4 | 2 | 7 | 6 | 14 | |||||
Non-controlling interest and copper operations and other | h | (36) | (17) | (28) | (53) | (31) | |||||
All-in costs | 1,370 | 1,281 | 1,356 | 2,651 | 2,674 | ||||||
Ounces sold – equity basis (000s ounces) | je | 1,224 | 1,220 | 1,372 | 2,444 | 2,737 | |||||
Cost of sales per ounce | j,k | 1,075 | 1,020 | 964 | 1,048 | 956 | |||||
Total cash costs per ounce | k | 716 | 692 | 651 | 704 | 641 | |||||
Total cash costs per ounce (on a co-product basis) | k,l | 747 | 705 | 663 | 726 | 654 | |||||
All-in sustaining costs per ounce | k | 1,031 | 954 | 869 | 993 | 842 | |||||
All-in sustaining costs per ounce (on a co-product basis) | k,l | 1,062 | 967 | 881 | 1,015 | 855 | |||||
All-in costs per ounce | k | 1,118 | 1,052 | 999 | 1,085 | 976 | |||||
All-in costs per ounce (on a co-product basis) | k,l | 1,149 | 1,065 | 1,011 | 1,107 | 989 |
a. Realized (gains) losses on hedge and non-hedge derivatives
Includes realized hedge losses of $nil and $nil, respectively, for the three and six month periods ended June 30, 2020 (March 31, 2020: $nil and June 30, 2019: $nil and $nil, respectively), and realized non-hedge losses of $1 million and $1 million, respectively, for the three and six month periods ended June 30, 2020 (March 31, 2020: $nil and June 30, 2019: gains of $1 million and $1 million, respectively). Refer to note 5 to the Financial Statements for further information.
b. Non-recurring items
Non-recurring items in 2019 relate to organizational restructuring. These costs are not indicative of our cost of production and have been excluded from the calculation of total cash costs.
c. Autre
Other adjustments for the three and six month period ended June 30, 2020 include the removal of total cash costs and by-product credits associated with: our Pierina mine; Golden Sunlight and Morila starting in the third quarter of 2019; and Lagunas Norte starting in the fourth quarter of 2019, which all are mining incidental ounces as they enter closure of $26 million and $51 million, respectively, (March 31, 2020: $25 million; June 30, 2019: $19 million and $37 million, respectively, relating to Pierina only).
d. Non-controlling interests
Non-controlling interests include non-controlling interests related to gold production of $495 million and $961 million, respectively, for the three and six month periods ended June 30, 2020 (March 31, 2020: $466 million and June 30, 2019: $171 million and $323 million, respectively). Non-controlling interests include Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara, Bulyanhulu, Buzwagi (notwithstanding the completion of the Acacia transaction on September 17, 2019, we consolidated our interest in Acacia and recorded a non-controlling interest of 36.1% in the income statement for the entirety of the third quarter of 2019 as a matter of convenience) and Nevada Gold Mines starting July 1, 2019. Refer to note 5 to the Financial Statements for further information.
e. Exploration and evaluation costs
Exploration, evaluation and project expenses are presented as minesite sustaining if it supports current mine operations and project if it relates to future projects. Refer to page 72 of the second quarter MD&A.
f. Capital expenditures
Capital expenditures are related to our gold sites only and are split between minesite sustaining and project capital expenditures. Project capital expenditures are distinct projects designed to increase the net present value of the mine and are not related to current production. Significant projects in the current year are the expansion project at Pueblo Viejo, the Goldrush exploration declines, the restart of mining activities at Bulyanhulu, and construction of the third shaft at Turquoise Ridge. Refer to page 71 of the second quarter MD&A.
g. Rehabilitation—accretion and amortization
Includes depreciation on the assets related to rehabilitation provisions of our gold operations and accretion on the rehabilitation provision of our gold operations, split between operating and non-operating sites.
h. Non-controlling interest and copper operations
Removes general & administrative costs related to non-controlling interests and copper based on a percentage allocation of revenue. Also removes exploration, evaluation and project expenses, rehabilitation costs and capital expenditures incurred by our copper sites and the non-controlling interest of North Mara, Bulyanhulu and Buzwagi (notwithstanding the completion of the Acacia transaction on September 17, 2019, we consolidated our interest in Acacia and recorded a non-controlling interest of 36.1% in the income statement for the entirety of the third quarter of 2019 as a matter of convenience), Pueblo Viejo, Loulo-Gounkoto and Tongon operating segments and South Arturo (63.1% of South Arturo from July 1, 2019 onwards as a result of its contribution to Nevada Gold Mines). Also removes the non-controlling interest of Nevada Gold Mines starting July 1, 2019. It also includes capital expenditures applicable to equity method investments. Figures remove the impact of Pierina; Golden Sunlight and Morila starting in the third quarter of 2019; and Lagunas Norte starting in the fourth quarter of 2019. The impact is summarized as the following:
($ millions) | For the three months ended | For the six months ended | ||||||||
Non-controlling interest, copper operations and other | 6/30/20 | 3/31/20 | 6/30/19 | 6/30/20 | 6/30/19 | |||||
General & administrative costs | (8) | (6) | (23) | (14) | (33) | |||||
Minesite exploration and evaluation expenses | (8) | (3) | 0 | (11) | (1) | |||||
Rehabilitation – accretion and amortization (operating sites) | (4) | (4) | (1) | (8) | (2) | |||||
Minesite sustaining capital expenditures | (138) | (112) | (52) | (250) | (115) | |||||
All-in sustaining costs total | (158) | (125) | (76) | (283) | (151) | |||||
Project exploration and evaluation and project costs | (9) | (3) | (26) | (12) | (28) | |||||
Project capital expenditures | (27) | (14) | (2) | (41) | (3) | |||||
All-in costs total | (36) | (17) | (28) | (53) | (31) |
i. Ounces sold – equity basis
Figures remove the impact of: Pierina; Golden Sunlight and Morila starting in the third quarter of 2019; and Lagunas Norte starting in the fourth quarter of 2019, which are producing incidental ounces as they reach the end of their mine lives.
j. Cost of sales per ounce
Figures remove the cost of sales impact of: Pierina of $4 million and $10 million, respectively, for the three and six month periods ended June 30, 2020 (March 31, 2020: $6 million and June 30, 2019: $44 million and $71 million, respectively); starting in the third quarter of 2019, Golden Sunlight of $nil and $nil, respectively, for the three and six month periods ended June 30, 2020 (March 31, 2020: $nil and June 30, 2019: $nil and $nil, respectively) and Morila of $8 million and $14 million, respectively, for the three and six month periods ended June 30, 2020 (March 31, 2020: $6 million and June 30, 2019: $nil and $nil, respectively); and starting in the fourth quarter of 2019, Lagunas Norte of $23 million and $43 million, respectively, for the three and six month periods ended June 30, 2020 (March 31, 2020: $21 million and June 30, 2019: $nil and $nil, respectively), which are mining incidental ounces as these sites enter closure. Cost of sales per ounce excludes non-controlling interest related to gold production. Cost of sales applicable to gold per ounce is calculated using cost of sales on an attributable basis (removing the non-controlling interest of 40% Pueblo Viejo, 20% of Loulo-Gounkoto, 10.3% of Tongon, 16% North Mara, Bulyanhulu and Buzwagi starting January 1, 2020, the effective date of the GoT’s free carried interest (36.1% up until September 30, 2019; notwithstanding the completion of the Acacia transaction on September 17, 2019, we consolidated our interest in Acacia and recorded a non-controlling interest of 36.1% in the income statement for the entirety of the third quarter of 2019 as a matter of convenience) and 40% South Arturo from cost of sales (63.1% of South Arturo from July 1, 2019 onwards as a result of its contribution to Nevada Gold Mines)), divided by attributable gold ounces. The non-controlling interest of 38.5% Nevada Gold Mines is also removed from cost of sales from July 1, 2019 onwards.
k. Per ounce figures
Cost of sales per ounce, total cash costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce may not calculate based on amounts presented in this table due to rounding.
l. Co-product costs per ounce
Total cash costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce presented on a co-product basis removes the impact of by-product credits of our gold production (net of non-controlling interest) calculated as:
($ millions) | For the three months ended | For the six months ended | ||||||||
6/30/20 | 3/31/20 | 6/30/19 | 6/30/20 | 6/30/19 | ||||||
By-product credits | 59 | 29 | 23 | 88 | 47 | |||||
Non-controlling interest | (22) | (15) | (7) | (37) | (15) | |||||
By-product credits (net of non-controlling interest) | 37 | 14 | 16 | 51 | 32 |
Endnote 9
Amounts reflect production and sales from Jabal Sayid and Zaldívar on a 50% basis, which reflects our equity share of production, and Lumwana.
Endnote 10
Copper cost of sales (Barrick’s share) is calculated as cost of sales – copper plus our equity share of cost of sales attributable to Zaldívar and Jabal Sayid divided by pounds sold.
Endnote 11
“C1 cash costs” per pound and “All-in sustaining costs” per pound are non-GAAP financial performance measures. “C1 cash costs” per pound is based on cost of sales but excludes the impact of depreciation and royalties and production taxes and includes treatment and refinement charges. “All-in sustaining costs” per pound begins with “C1 cash costs” per pound and adds further costs which reflect the additional costs of operating a mine, primarily sustaining capital expenditures, general & administrative costs and royalties and production taxes. Barrick believes that the use of “C1 cash costs” per pound and “all-in sustaining costs” per pound will assist investors, analysts, and other stakeholders in understanding the costs associated with producing copper, understanding the economics of copper mining, assessing our operating performance, and also our ability to generate free cash flow from current operations and to generate free cash flow on an overall Company basis. “C1 cash costs” per pound and “All-in sustaining costs” per pound are intended to provide additional information only, do not have any standardized meaning under IFRS, and may not be comparable to similar measures of performance presented by other companies. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on these non-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Copper Cost of Sales to C1 cash costs and All-in sustaining costs, including on a per pound basis
($ millions, except per pound information in dollars) | For the three months ended | For the six months ended | ||||||||
6/30/20 | 3/31/20 | 6/30/19 | 6/30/20 | 6/30/19 | ||||||
Cost of sales | 153 | 124 | 101 | 277 | 232 | |||||
Depreciation/amortization | (63) | (43) | (28) | (106) | (70) | |||||
Treatment and refinement charges | 40 | 39 | 25 | 79 | 56 | |||||
Cash cost of sales applicable to equity method investments | 72 | 66 | 69 | 138 | 135 | |||||
Less: royalties and production taxesune | (11) | (11) | (9) | (22) | (21) | |||||
By-product credits | (3) | (3) | (2) | (6) | (5) | |||||
Autre | 0 | 0 | (5) | 0 | (5) | |||||
C1 cash costs | 188 | 172 | 151 | 360 | 322 | |||||
General & administrative costs | 6 | 3 | 6 | 9 | 11 | |||||
Rehabilitation – accretion and amortization | 2 | 3 | 3 | 5 | 6 | |||||
Royalties and production taxesune | 11 | 11 | 9 | 22 | 21 | |||||
Minesite exploration and evaluation costs | 1 | 1 | 1 | 2 | 3 | |||||
Minesite sustaining capital expenditures | 52 | 32 | 48 | 84 | 107 | |||||
Sustaining leases | 2 | 3 | 1 | 5 | 2 | |||||
All-in sustaining costs | 262 | 225 | 219 | 487 | 472 | |||||
Pounds sold – consolidated basis (millions pounds) | 123 | 110 | 96 | 233 | 199 | |||||
Cost of sales per poundb,c | 2.08 | 1.96 | 2.04 | 2.03 | 2.13 | |||||
C1 cash cost per poundb | 1.55 | 1.55 | 1.59 | 1.55 | 1.62 | |||||
All-in sustaining costs per poundb | 2.15 | 2.04 | 2.28 | 2.10 | 2.37 |
- For the three and six month period ended June 30, 2020, royalties and production taxes include royalties of $11 million and $22 million respectively (March 31, 2020: $11 million and June 30, 2019: $9 million and $21 million respectively).
- 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.
- Cost of sales applicable to copper per pound is calculated using cost of sales including our proportionate share of cost of sales attributable to equity method investments (Zaldívar and Jabal Sayid), divided by consolidated copper pounds (including our proportionate share of copper pounds from our equity method investments).
Endnote 12
Barrick defines a Tier One mine as one that produces in excess of 500,000 ounces of gold per annum and has a life of at least 10 years.
Endnote 13
On a 100% basis and pending completion of updated feasibility studies at Bulyanhulu.
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 and other factors deemed relevant by the Board.
Endnote 15
Cost of sales applicable to gold per ounce is calculated using cost of sales applicable to gold on an attributable basis (removing the non-controlling interest of 40% Pueblo Viejo; 20% Loulo-Gounkoto; 10.3% Tongon; 16% North Mara, Bulyanhulu and Buzwagi starting January 1, 2020, the date the GoT’s 16% free carried interest was made effective (36.1% from January 1, 2019 to September 30, 2019; notwithstanding the completion of the Acacia transaction on September 17, 2019, we consolidated our interest in Acacia and recorded a non-controlling interest of 36.1% in the income statement for the entirety of the third quarter of 2019 as a matter of convenience); 63.1% South Arturo from cost of sales from July 1, 2019 onwards as a result of its contribution to Nevada Gold Mines (and on a 40% basis from January 1, 2019 to June 30, 2019); and our proportionate share of cost of sales attributable to equity method investments (Kibali, and Morila until the second quarter of 2019), divided by attributable gold ounces. Also removes the non-controlling interest of 38.5% Nevada Gold Mines from cost of sales from July 1, 2019 onwards. Cost of sales applicable to copper per pound is calculated using cost of sales applicable to copper including our proportionate share of cost of sales attributable to equity method investments (Zaldívar and Jabal Sayid), divided by consolidated copper pounds (including our proportionate share of copper pounds from our equity method investments).
Endnote 16
Includes our 36.9% share of South Arturo.
Endnote 17
Based on the communication we received from the Government of Papua New Guinea that the SML will not be extended, Porgera was placed on temporary care and maintenance on April 25, 2020 to ensure the safety and security of our employees and communities. Due to the uncertainty related to the timing and scope of future developments on the mine’s operating outlook, our full year 2020 guidance for Porgera has been withdrawn.
Endnote 18
Amounts are on an 84% basis as the GoT’s 16% free-carried interest was made effective from January 1, 2020.
Endnote 19
Total cash costs and all-in sustaining costs per ounce include the impact of hedges and/or costs allocated to non-operating sites.
Endnote 20
Operating unit guidance ranges reflect expectations at each individual operating unit, and may not add up to the company-wide guidance range total. Guidance ranges exclude Pierina, Lagunas Norte, Golden Sunlight and Morila (40%).
Endnote 21
Includes corporate administration costs.
Endnote 22
2020 Guidance includes our 61.5% share of Nevada Gold Mines, our 60% share of Pueblo Viejo, our 80% share of Loulo-Gounkoto, our 89.7% share of Tongon, our 84% share of North Mara, Bulyanhulu and Buzwagi, our 50% share of Zaldívar and Jabal Sayid, and our 45% of Kibali, and our share of joint operations.
Endnote 23
Reflects the impact of the full year.
Endnote 24
EBITDA is a non-GAAP financial measure, which excludes the following from net earnings: income tax expense; finance costs; finance income; and depreciation. Management believes that EBITDA is a valuable indicator of our ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures. Management uses EBITDA for this purpose. Adjusted EBITDA removes the effect of impairment charges; acquisition/disposition gains/losses; foreign currency translation gains/losses; other expense adjustments; unrealized gains on non-hedge derivative instruments; and the impact of the income tax expense, finance costs, finance income and depreciation incurred in our equity method accounted investments. We believe these items provide a greater level of consistency with the adjusting items included in our Adjusted Net Earnings reconciliation, with the exception that these amounts are adjusted to remove any impact on finance costs/income, income tax expense and/or depreciation as they do not affect EBITDA. We believe this additional information will assist analysts, investors and other stakeholders of Barrick in better understanding our ability to generate liquidity from our full business, including equity method investments, by excluding these amounts from the calculation as they are not indicative of the performance of our core mining business and not necessarily reflective of the underlying operating results for the periods presented. EBITDA and adjusted EBITDA are intended to provide additional information only and do not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on these non-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to EBITDA and Adjusted EBITDA
($ millions) | For the three months ended | For the six months ended | ||||||||
6/30/20 | 3/31/20 | 6/30/19 | 6/30/20 | 6/30/19 | ||||||
Net earnings (loss) | 622 | 663 | 223 | 1,285 | 363 | |||||
Income tax expense | 258 | 386 | 41 | 644 | 208 | |||||
Finance costs, netune | 74 | 88 | 98 | 162 | 198 | |||||
Depreciation | 566 | 524 | 466 | 1,090 | 901 | |||||
EBITDA | 1,520 | 1,661 | 828 | 3,181 | 1,670 | |||||
Impairment charges (reversals) of long-lived assetsb | 23 | (336) | 12 | (313) | 15 | |||||
Acquisition/disposition (gains) lossesc | 8 | (60) | (12) | (52) | (12) | |||||
Loss (gain) on currency translation | 2 | 16 | (6) | 18 | 16 | |||||
Other expense (income) adjustmentsré | 48 | 98 | 58 | 146 | 104 | |||||
Income tax expense, net finance costs, and depreciation from equity investees | 96 | 87 | 92 | 183 | 181 | |||||
Adjusted EBITDA | 1,697 | 1,466 | 972 | 3,163 | 1,974 |
- Finance costs exclude accretion.
- Net impairment charges for the three month period ended June 30, 2020 relate to miscellaneous assets. For the three month period ended March 31, 2020 and the six month period ended June 30, 2020, net impairment reversals primarily relate to non-current asset reversals at our Tanzanian assets.
- Acquisition/disposition gains for the three month period ended March 31, 2020 and the six month period ended June 30, 2020 primarily relate to the gain on the sale of Massawa.
- Other expense adjustments for the three and six month period ended June 30, 2020 primarily relate to care and maintenance expenses at Porgera and Covid-19 donations. The six month period ended June 30, 2020 was further impacted by changes in the discount rate assumptions on our closed mine rehabilitation provision. For the three month period ended March 31, 2020, other expense adjustments primarily relate to the impact of changes in the discount rate assumptions on our closed mine rehabilitation provision and losses on debt extinguishment. Other expense adjustments for the three and six month periods ended June 30, 2019 primarily relate to severance costs as a result of the implementation of a number of organizational reductions, the impact of changes in the discount rate assumptions on our closed mine rehabilitation provision and transaction costs related to Nevada Gold Mines.
Endnote 25
Due to our hedging activities, which are reflected in these sensitivities, we are partially protected against changes in these factors.
Financial and Operating Highlights
For the three months ended | For the six months ended | ||||||||||||||||||
6/30/20 | 3/31/20 | % Change | 6/30/19 | % Change | 6/30/20 | 6/30/19 | % Change | ||||||||||||
Financial Results ($ millions) | |||||||||||||||||||
Revenues | 3,055 | 2,721 | 12 | % | 2,063 | 48 | % | 5,776 | 4,156 | 39 | % | ||||||||
Cost of sales | 1,900 | 1,776 | 7 | % | 1,545 | 23 | % | 3,676 | 3,035 | 21 | % | ||||||||
Net earningsune | 357 | 400 | (11 | ) | % | 194 | 84 | % | 757 | 305 | 148 | % | |||||||
Adjusted net earningsb | 415 | 285 | 46 | % | 154 | 169 | % | 700 | 338 | 107 | % | ||||||||
Adjusted EBITDAb | 1,697 | 1,466 | 16 | % | 972 | 75 | % | 3,163 | 1,974 | 60 | % | ||||||||
Adjusted EBITDA marginb,c | 56 | % | 54 | % | 4 | % | 47 | % | 19 | % | 55 | % | 47 | % | 17 | % | |||
Minesite sustaining capital expendituresré | 420 | 370 | 14 | % | 267 | 57 | % | 790 | 520 | 52 | % | ||||||||
Project capital expendituresré | 85 | 76 | 12 | 108 | (21 | ) | 161 | 228 | (29 | ) | % | ||||||||
Total consolidated capital expendituresd,e | 509 | 451 | 13 | 379 | 34 | 960 | 753 | 27 | % | ||||||||||
Net cash provided by operating activities | 1,031 | 889 | 16 | % | 434 | 138 | % | 1,920 | 954 | 101 | % | ||||||||
Net cash provided by operating activities marginF | 34 | % | 33 | % | 3 | % | 21 | % | 62 | % | 33 | % | 23 | % | 43 | % | |||
Free cash flowb | 522 | 438 | 19 | % | 55 | 849 | % | 960 | 201 | 378 | % | ||||||||
Net earnings per share (basic and diluted) | 0,20 | 0.22 | (9 | ) | % | 0.11 | 82 | % | 0.43 | 0.17 | 153 | % | |||||||
Adjusted net earnings (basic)bper share | 0,23 | 0.16 | 44 | % | 0.09 | 156 | % | 0.39 | 0.19 | 105 | % | ||||||||
Weighted average diluted common shares (millions of shares) | 1,778 | 1,778 | 0 | % | 1,752 | 1 | % | 1,778 | 1,749 | 2 | % | ||||||||
Operating Results | |||||||||||||||||||
Gold production (thousands of ounces)g | 1,149 | 1,250 | (8 | ) | % | 1,353 | (15 | ) | % | 2,399 | 2,720 | (12 | ) | % | |||||
Gold sold (thousands of ounces)g | 1,224 | 1,220 | 0 | % | 1,372 | (11 | ) | % | 2,444 | 2,737 | (11 | ) | % | ||||||
Market gold price ($/oz) | 1,711 | 1,583 | 8 | % | 1,309 | 31 | % | 1,645 | 1,307 | 26 | % | ||||||||
Realized gold priceb,g($/oz) | 1,725 | 1,589 | 9 | % | 1,317 | 31 | % | 1,657 | 1,312 | 26 | % | ||||||||
Gold cost of sales (Barrick’s share)g,h($/oz) | 1,075 | 1,020 | 5 | % | 964 | 12 | % | 1,048 | 956 | dix | % | ||||||||
Gold total cash costsb,g($/oz) | 716 | 692 | 3 | % | 651 | dix | % | 704 | 641 | dix | % | ||||||||
Gold all-in sustaining costsb,g($/oz) | 1,031 | 954 | 8 | % | 869 | 19 | % | 993 | 842 | 18 | % | ||||||||
Copper production (millions of pounds)je | 120 | 115 | 4 | % | 97 | 24 | % | 235 | 203 | 16 | % | ||||||||
Copper sold (millions of pounds)je | 123 | 110 | 12 | % | 96 | 28 | % | 233 | 199 | 17 | % | ||||||||
Market copper price ($/lb) | 2.43 | 2.56 | (5 | ) | % | 2.77 | (12 | ) | % | 2.49 | 2.80 | (11 | ) | % | |||||
Realized copper priceb,i($/lb) | 2.79 | 2.23 | 25 | % | 2.62 | 6 | % | 2.53 | 2.85 | (11 | ) | % | |||||||
Copper cost of sales (Barrick’s share)i,j($/lb) | 2.08 | 1.96 | 6 | % | 2.04 | 2 | % | 2.03 | 2.13 | (5 | ) | % | |||||||
Copper C1 cash costsb,i($/lb) | 1.55 | 1.55 | 0 | % | 1.59 | (3 | ) | % | 1.55 | 1.62 | (4 | ) | % | ||||||
Copper all-in sustaining costsb,i($/lb) | 2.15 | 2.04 | 5 | % | 2.28 | (6 | ) | % | 2.10 | 2.37 | (11 | ) | % | ||||||
As at 6/30/20 | As at 3/31/20 | % Change | As at 6/30/19 | % Change | |||||||||||||||
Financial Position ($ millions) | |||||||||||||||||||
Debt (current and long-term) | 5,168 | 5,179 | 0 | % | 5,807 | (11 | ) | % | |||||||||||
Cash and equivalents | 3,743 | 3,327 | 13 | % | 2,153 | 74 | % | ||||||||||||
Debt, net of cash | 1,425 | 1,852 | (23 | ) | % | 3,654 | (61 | ) | % |
a. Net earnings represents net earnings attributable to the equity holders of the Company.
b. Adjusted net earnings, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net earnings per share, realized gold price, all-in sustaining costs, total cash costs, C1 cash costs and realized copper price are non-GAAP financial performance measures with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information and a detailed reconciliation of each non-GAAP measure to the most directly comparable IFRS measure, please see pages 79 to 103 of our second quarter MD&A.
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.
f. Represents net cash provided by operating activities divided by revenue.
g. Includes North Mara, Bulyanhulu and Buzwagi on a 84% basis starting January 1, 2020 (and on a 63.9% basis from January 1, 2019 to September 30, 2019; notwithstanding the completion of the Acacia transaction on September 17, 2019, we consolidated our interest in Acacia and recorded a non-controlling interest of 36.1% in the income statement for the entirety of the third quarter of 2019 as a matter of convenience, and on a 100% basis from October 1, 2019 to December 31, 2019), Pueblo Viejo on a 60% basis, South Arturo on a 36.9% basis from July 1, 2019 onwards as a result of its contribution to Nevada Gold Mines (and on a 60% basis from January 1, 2019 to June 30, 2019), Veladero on a 50% basis, Loulo-Gounkoto on an 80% basis, Kibali on a 45% basis, Tongon on an 89.7% basis, and Morila on a 40% basis until the second quarter of 2019, which reflects our equity share of production and sales. Also removes the non-controlling interest of 38.5% Nevada Gold Mines from July 1, 2019 onwards.
h. Gold cost of sales (Barrick’s share) is calculated as gold cost of sales on an attributable basis (excluding sites in care and maintenance) divided by ounces sold.
i. Amounts reflect production and sales from Jabal Sayid and Zaldívar on a 50% basis, which reflects our equity share of production, and Lumwana.
j. Copper cost of sales (Barrick’s share) is calculated as copper cost of sales plus our equity share of cost of sales attributable to Zaldívar and Jabal Sayid divided by pounds sold.
Consolidated Statements of Income
Barrick Gold Corporation (in millions of United States dollars, except per share data) (Unaudited) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue (notes 5 and 6) | $ | 3,055 | $ | 2,063 | $ | 5,776 | $ | 4,156 | ||||||||
Costs and expenses (income) | ||||||||||||||||
Cost of sales (notes 5 and 7) | 1,900 | 1,545 | 3,676 | 3,035 | ||||||||||||
General and administrative expenses | 71 | 59 | 111 | 113 | ||||||||||||
Exploration, evaluation and project expenses | 78 | 98 | 149 | 172 | ||||||||||||
Impairment (reversals) charges (notes 9B and 13) | 23 | 12 | (313 | ) | 15 | |||||||||||
Loss (gain) on currency translation | 2 | (6 | ) | 18 | 16 | |||||||||||
Closed mine rehabilitation | 7 | 16 | 97 | 41 | ||||||||||||
Income from equity investees (note 12) | (61 | ) | (50 | ) | (115 | ) | (78 | ) | ||||||||
Other expense (note 9A) | 73 | 7 | 38 | 33 | ||||||||||||
Income before finance costs and income taxes | $ | 962 | $ | 382 | $ | 2,115 | $ | 809 | ||||||||
Finance costs, net | (82 | ) | (118 | ) | (186 | ) | (238 | ) | ||||||||
Income before income taxes | $ | 880 | $ | 264 | $ | 1,929 | $ | 571 | ||||||||
Income tax expense (note 10) | (258 | ) | (41 | ) | (644 | ) | (208 | ) | ||||||||
Net income | $ | 622 | $ | 223 | $ | 1,285 | $ | 363 | ||||||||
Attributable to: | ||||||||||||||||
Equity holders of Barrick Gold Corporation | $ | 357 | $ | 194 | $ | 757 | $ | 305 | ||||||||
Non-controlling interests | $ | 265 | $ | 29 | $ | 528 | $ | 58 | ||||||||
Earnings per share data attributable to the equity holders of Barrick Gold Corporation (note 8) | ||||||||||||||||
Net income | ||||||||||||||||
De base | $ | 0,20 | $ | 0.11 | $ | 0.43 | $ | 0.17 | ||||||||
Diluted | $ | 0,20 | $ | 0.11 | $ | 0.43 | $ | 0.17 |
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2020 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 June 30, | Six months ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income | $ | 622 | $ | 223 | $ | 1,285 | $ | 363 | ||||||||
Other comprehensive (loss) income, net of taxes | ||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||
Unrealized gains (losses) on derivatives designated as cash flow hedges, net of tax $nil, $nil, $nil and $nil | (2 | ) | – | (1 | ) | – | ||||||||||
Currency translation adjustments, net of tax $nil, $nil, $nil and $nil | (1 | ) | (1 | ) | (5 | ) | (3 | ) | ||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||
Actuarial gain (loss) on post employment benefit obligations, net of tax ($3), $nil, $nil and $nil | (5 | ) | – | (2 | ) | – | ||||||||||
Net change on equity investments, net of tax $nil, $nil, $nil and $nil | 118 | 11 | 93 | 7 | ||||||||||||
Total other comprehensive income | 110 | dix | 85 | 4 | ||||||||||||
Total comprehensive income | $ | 732 | $ | 233 | $ | 1,370 | $ | 367 | ||||||||
Attributable to: | ||||||||||||||||
Equity holders of Barrick Gold Corporation | $ | 467 | $ | 204 | $ | 842 | $ | 309 | ||||||||
Non-controlling interests | $ | 265 | $ | 29 | $ | 528 | $ | 58 |
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2020 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 June 30, | Six months ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Net income | $ | 622 | $ | 223 | $ | 1,285 | $ | 363 | ||||||||
Adjustments for the following items: | ||||||||||||||||
Depreciation | 566 | 466 | 1,090 | 901 | ||||||||||||
Finance costs, net | 86 | 125 | 197 | 252 | ||||||||||||
Impairment (reversals) charges (notes 9B and 13) | 23 | 12 | (313 | ) | 15 | |||||||||||
Income tax expense (note 10) | 258 | 41 | 644 | 208 | ||||||||||||
Loss (gain) on sale of non-current assets | 8 | (12 | ) | (52 | ) | (12 | ) | |||||||||
Loss (gain) on currency translation | 2 | (6 | ) | 18 | 16 | |||||||||||
Change in working capital (note 11) | (9 | ) | (82 | ) | (341 | ) | (330 | ) | ||||||||
Other operating activities (note 11) | (35 | ) | 38 | 18 | 14 | |||||||||||
Operating cash flows before interest and income taxes | 1,521 | 805 | 2,546 | 1,427 | ||||||||||||
Interest paid | (130 | ) | (137 | ) | (154 | ) | (165 | ) | ||||||||
Income taxes paid | (360 | ) | (234 | ) | (472 | ) | (308 | ) | ||||||||
Net cash provided by operating activities | 1,031 | 434 | 1,920 | 954 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Property, plant and equipment | ||||||||||||||||
Capital expenditures (note 5) | (509 | ) | (379 | ) | (960 | ) | (753 | ) | ||||||||
Sales proceeds | 9 | 15 | 16 | 18 | ||||||||||||
Investment sales (purchases) | 206 | (4 | ) | 206 | (7 | ) | ||||||||||
Divestitures (note 4) | – | – | 256 | – | ||||||||||||
Cash acquired in merger | – | – | – | 751 | ||||||||||||
Other investing activities (note 11) | 30 | 17 | 55 | 62 | ||||||||||||
Net cash provided by (used in) investing activities | (264 | ) | (351 | ) | (427 | ) | 71 | |||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Lease repayments | (7 | ) | (6 | ) | (12 | ) | (18 | ) | ||||||||
Debt repayments | – | – | (351 | ) | (16 | ) | ||||||||||
Dividends | (124 | ) | (61 | ) | (246 | ) | (394 | ) | ||||||||
Funding from non-controlling interests | – | 8 | 1 | 14 | ||||||||||||
Disbursements to non-controlling interests | (217 | ) | (23 | ) | (434 | ) | (28 | ) | ||||||||
Other financing activities | – | – | (15 | ) | – | |||||||||||
Net cash used in financing activities | (348 | ) | (82 | ) | (1,057 | ) | (442 | ) | ||||||||
Effect of exchange rate changes on cash and equivalents | (3 | ) | (1 | ) | (7 | ) | (1 | ) | ||||||||
Net increase in cash and equivalents | 416 | – | 429 | 582 | ||||||||||||
Cash and equivalents at the beginning of period | 3,327 | 2,153 | 3,314 | 1,571 | ||||||||||||
Cash and equivalents at the end of period | $ | 3,743 | $ | 2,153 | $ | 3,743 | $ | 2,153 |
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2020 available on our website are an integral part of these consolidated financial statements.
Consolidated Balance Sheets
Barrick Gold Corporation (in millions of United States dollars) (Unaudited) |
As at June 30, | As at December 31, | ||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and equivalents (note 14A) | $ | 3,743 | $ | 3,314 | ||||
Accounts receivable | 407 | 363 | ||||||
Inventories | 2,160 | 2,289 | ||||||
Other current assets | 609 | 565 | ||||||
Total current assets (excluding assets classified as held for sale) | $ | 6,919 | $ | 6,531 | ||||
Assets classified as held for sale (note 4A) | – | 356 | ||||||
Total current assets | $ | 6,919 | $ | 6,887 | ||||
Non-current assets | ||||||||
Equity in investees (note 12) | 4,587 | 4,527 | ||||||
Property, plant and equipment | 24,727 | 24,141 | ||||||
Goodwill | 4,769 | 4,769 | ||||||
Intangible assets | 214 | 226 | ||||||
Deferred income tax assets | 143 | 235 | ||||||
Non-current portion of inventory | 2,460 | 2,300 | ||||||
Autres actifs | 1,361 | 1,307 | ||||||
Total des actifs | $ | 45,180 | $ | 44,392 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 1,072 | $ | 1,155 | ||||
Debt (note 14B) | 26 | 375 | ||||||
Current income tax liabilities | 122 | 224 | ||||||
Other current liabilities | 591 | 622 | ||||||
Total current liabilities | $ | 1,811 | $ | 2,376 | ||||
Non-current liabilities | ||||||||
Debt (note 14B) | 5,142 | 5,161 | ||||||
Provisions | 3,291 | 3,114 | ||||||
Deferred income tax liabilities | 3,106 | 3,091 | ||||||
Other liabilities | 1,084 | 823 | ||||||
Responsabilités totales | $ | 14,434 | $ | 14,565 | ||||
Equity | ||||||||
Capital stock (note 16) | $ | 29,234 | $ | 29,231 | ||||
Deficit | (9,214 | ) | (9,722 | ) | ||||
Accumulated other comprehensive loss | (37 | ) | (122 | ) | ||||
Autre | 2,049 | 2,045 | ||||||
Total equity attributable to Barrick Gold Corporation shareholders | $ | 22,032 | $ | 21,432 | ||||
Non-controlling interests | 8,714 | 8,395 | ||||||
Total equity | $ | 30,746 | $ | 29,827 | ||||
Contingencies and commitments (notes 5 and 17) | ||||||||
Total liabilities and equity | $ | 45,180 | $ | 44,392 |
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2020 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 | Autre2 | Total equity attributable to shareholders | Non-controlling interests | Total equity | ||||||||||||||||||||
At January 1, 2020 | 1,777,927 | $ | 29,231 | ($ | 9,722 | ) | ($ | 122 | ) | $ | 2,045 | $ | 21,432 | $ | 8,395 | $ | 29,827 | |||||||||||
Net income | – | – | 757 | – | – | 757 | 528 | 1,285 | ||||||||||||||||||||
Total other comprehensive income (loss) | – | – | – | 85 | – | 85 | – | 85 | ||||||||||||||||||||
Total comprehensive income | – | – | 757 | 85 | – | 842 | 528 | 1,370 | ||||||||||||||||||||
Transactions with owners | ||||||||||||||||||||||||||||
Dividends | – | – | (246 | ) | – | – | (246 | ) | – | (246 | ) | |||||||||||||||||
Issuance of 16% interest in Tanzania mines (note 13) | – | – | – | – | – | – | 238 | 238 | ||||||||||||||||||||
Issued on exercise of stock options | 40 | – | – | – | – | – | – | – | ||||||||||||||||||||
Funding from non-controlling interests | – | – | – | – | – | – | 1 | 1 | ||||||||||||||||||||
Disbursements to non-controlling interests | – | – | – | – | – | – | (448 | ) | (448 | ) | ||||||||||||||||||
Dividend reinvestment plan (note 16) | 101 | 3 | (3 | ) | – | – | – | – | – | |||||||||||||||||||
Share-based payments | – | – | – | – | 4 | 4 | – | 4 | ||||||||||||||||||||
Total transactions with owners | 141 | 3 | (249 | ) | – | 4 | (242 | ) | (209 | ) | (451 | ) | ||||||||||||||||
At June 30, 2020 | 1,778,068 | $ | 29,234 | ($ | 9,214 | ) | ($ | 37 | ) | $ | 2,049 | $ | 22,032 | $ | 8,714 | $ | 30,746 | |||||||||||
At January 1, 2019 | 1,167,847 | $ | 20,883 | ($ | 13,453 | ) | ($ | 158 | ) | $ | 321 | $ | 7,593 | $ | 1,792 | $ | 9,385 | |||||||||||
Net income | – | – | 305 | – | – | 305 | 58 | 363 | ||||||||||||||||||||
Total other comprehensive income | – | – | – | 4 | – | 4 | – | 4 | ||||||||||||||||||||
Total comprehensive income | – | – | 305 | 4 | – | 309 | 58 | 367 | ||||||||||||||||||||
Transactions with owners | ||||||||||||||||||||||||||||
Dividends | – | – | (64 | ) | – | – | (64 | ) | – | (64 | ) | |||||||||||||||||
Merger with Randgold Resources Limited | 583,669 | 7,903 | – | – | – | 7,903 | 885 | 8,788 | ||||||||||||||||||||
Issued on exercise of stock options | 25 | – | – | – | – | – | – | – | ||||||||||||||||||||
Funding from non-controlling interests | – | – | – | – | – | – | 14 | 14 | ||||||||||||||||||||
Disbursements to non-controlling interests | – | – | – | – | – | – | (28 | ) | (28 | ) | ||||||||||||||||||
Dividend reinvestment plan (note 16) | 1,128 | 15 | (15 | ) | – | – | – | – | – | |||||||||||||||||||
Share-based payments | – | – | – | – | 5 | 5 | – | 5 | ||||||||||||||||||||
Total transactions with owners | 584,822 | 7,918 | (79 | ) | – | 5 | 7,844 | 871 | 8,715 | |||||||||||||||||||
At June 30, 2019 | 1,752,669 | $ | 28,801 | ($ | 13,227 | ) | ($ | 154 | ) | $ | 326 | $ | 15,746 | $ | 2,721 | $ | 18,467 |
1 Includes cumulative translation losses at June 30, 2020: $92 million (June 30, 2019: $84 million).
2 Includes additional paid-in capital as at June 30, 2020: $2,011 million (December 31, 2019: $2,007 million; June 30, 2019: $283 million).
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2020 available on our website are an integral part of these consolidated financial statements.
Corporate Office
Barrick Gold Corporation
161 Bay Street, Suite 3700
Toronto, Ontario M5J 2S1
Canada
Telephone: +1 416 861-9911
Email: investor@barrick.com
Website: www.barrick.com
Shares Listed
GOLD
The New York Stock Exchange
ABX
The Toronto Stock Exchange
Transfer Agents and Registrars
AST Trust Company (Canada)
P.O. Box 700, Postal Station B
Montreal, Quebec H3B 3K3
ou
American Stock Transfer & Trust Company, LLC
6201 – 15 Avenue
Brooklyn, New York 11219
Telephone: 1-800-387-0825
Fax: 1-888-249-6189
Email: inquiries@astfinancial.com
Website: www.astfinancial.com
Enquiries
President and chief executive
Mark Bristow
+1 647 205 7694
+44 788 071 1386
SEVP and chief financial officer
Graham Shuttleworth
+1 647 262 2095
+44 779 771 1338
Investor and media Relations
Kathy du Plessis
+44 20 7557 7738
Email: barrick@dpapr.com
Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “deliver”, “plan”, “objective”, “expected”, “potential”, “strategy”, “will”, “continues”, “ongoing” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: Barrick’s forward-looking production guidance and estimates of future costs; Barrick’s non-core asset disposal strategy; potential extensions to life of mine, including at Hemlo; production rates, including potential production from North Mara and Bulyanhulu; Barrick’s response to the government of Papua New Guinea’s decision not to extend Porgera’s Special Mining Lease; the duration of the temporary suspension of operations at Porgera; potential mineralization; potential exploration targets and mineral resource potential, including reserve replenishment; future dividend levels; Barrick’s engagement with local communities to manage the Covid-19 pandemic; future investments in community projects and contributions to local economies; the new joint venture with the Government of Tanzania; timing of resumption of production at Bulyanhulu; timing of development of the Goldrush declines; and expectations regarding future price assumptions, financial performance and other outlook or guidance.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper or certain other commodities (such as silver, diesel fuel, natural gas and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation and exploration successes; risks associated with projects in the early stages of evaluation and for which additional engineering and other analysis is required; the benefits expected from recent transactions being realized; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required infrastructure and information technology systems; failure to comply with environmental and health and safety laws and regulations; non-renewal of key licenses by governmental authorities, including non-renewal of Porgera’s Special Mining Lease; timing of receipt of, or failure to comply with, necessary permits and approvals; uncertainty whether some or all of Barrick’s targeted investments and projects will meet the Company’s capital allocation objectives and internal hurdle rate; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; adverse changes in our credit ratings; the impact of inflation; fluctuations in the currency markets; changes in U.S. dollar interest rates; risks arising from holding derivative instruments; 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 Canada, the United States and other jurisdictions in which the Company or its affiliates do or may carry on business in the future; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law; risks associated with illegal and artisanal mining; risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic; disruption of supply routes which may cause delays in construction and mining activities; damage to the Company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company’s handling of environmental matters or dealings with community groups, whether true or not; the possibility that future exploration results will not be consistent with the Company’s expectations; 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; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; litigation and legal and administrative proceedings; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; business opportunities that may be presented to, or pursued by, the Company; our ability to successfully integrate acquisitions or complete divestitures, including our ability to successfully reintegrate Acacia’s operations; risks associated with working with partners in jointly controlled assets; employee relations including loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; and availability and increased costs associated with mining inputs and labor. Barrick also cautions that its 2020 guidance may be impacted by the unprecedented business and social disruption caused by the spread of Covid-19. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).
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 SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release. We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.