Fourth Quarter and Full Year 2022 Results
All amounts expressed in US dollars
Announcing Barrick’s results for the 2022 year and Q4, president and chief executive
“Our continued success in not only replenishing but also unlocking significant value in our asset base shows the unmatched potential of our organic growth pipeline,” he said.
Barrick returned a record
A stronger Q4 operational performance, notably from Cortez and
In one of the most significant developments of the year, work has started on the development of the massive Reko Diq copper-gold project in the
Another major project, the expansion of Pueblo Viejo’s process plant and the establishment of a new tailings storage facility, also continued to advance. Bristow noted that despite the presence of over 4,500 additional construction workers on the site, the mill achieved a record throughput for the fourth successive year, with production well within guidance. Reserve growth has added more than 20 years to the life of this Tier One mine.
On the exploration front, drilling across Barrick’s brownfields portfolio has confirmed significant growth potential at Dorothy and Greater Leeville in
“The past year has seen a further deterioration in geopolitics and the dawn of a new era of high inflation, high interest rates and high risk. In this period of global uncertainty, gold outperformed most asset classes. Barrick is the largest gold miner in
Key Performance Indicators
Best Assets
- Tier One12 assets deliver significant growth in gold reserves and resources
- Completed the reconstitution of the Reko Diq project — one of the world’s largest undeveloped gold and copper deposits
- Copper resource growth driven by
Lumwana Super Pit and Reko Diq - Stronger Q4 performance from Cortez,
Carlin and Tongon results in full year gold production of 4.14 million ounces2 - Record throughput at Pueblo Viejo; reserve growth delivers a 20+ year life of mine13
- Commissioning of Pueblo Viejo plant expansion has commenced
- Goldrush permitting moves forward another step with Notice of Availability briefing package submitted
- Turquoise Ridge Third Shaft commissioned
- Strong drilling intersections across brownfields portfolio confirms growth potential (Dorothy, Morro Escondido,
Gara West ,Jabal Sayid , North Mara, Greater Leeville), while greenfields work continues to develop a pipeline of exciting targets
Leader in Sustainability
- Group-wide safety review prioritises Journey to Zero roadmap
- Zero Class 114 or high significance environmental incidents
- Greenhouse gas emissions reduction roadmap on track
- Water management recycling targets achieved
- Rhino reintroduction project contributes another significant biodiversity component to the greater Garamba nature initiative
Delivering Value
- Moody’s upgrades Barrick’s long-term credit rating from Baa1 to A3, making Barrick the highest-rated company in the gold mining industry
- Strategic repurchase of long-term debt at a discount to par reduces future interest payments
- Record returns of
$1.6 billion to shareholders in 2022
Financial and Operating Highlights
Financial Results | Q4 2022 | Q3 2022 | 2022 | 2021 | ||
Realized gold price2,3 ($ per ounce) | 1,728 | 1,722 | 1,795 | 1,790 | ||
Net earnings ($ millions) | (735 | ) | 241 | 432 | 2,022 | |
Adjusted net earnings4 ($ millions) | 220 | 224 | 1,326 | 2,065 | ||
Net cash provided by operating activities ($ millions) | 795 | 758 | 3,481 | 4,378 | ||
Free cash flow5 ($ millions) | (96 | ) | (34 | ) | 432 | 1,943 |
Net earnings per share ($) | (0.42 | ) | 0.14 | 0.24 | 1.14 | |
Adjusted net earnings per share4 ($) | 0.13 | 0.13 | 0.75 | 1.16 | ||
Attributable capital expenditures6,7 ($ millions) | 743 | 609 | 2,417 | 1,951 | ||
Operating Results | Q4 2022 | Q3 2022 | 2022 | 2021 | ||
Gold | ||||||
Production2 (thousands of ounces) | 1,120 | 988 | 4,141 | 4,437 | ||
Cost of sales2,8 ($ per ounce) | 1,324 | 1,226 | 1,241 | 1,093 | ||
Total cash costs2,9 ($ per ounce) | 868 | 891 | 862 | 725 | ||
All-in sustaining costs2,9 ($ per ounce) | 1,242 | 1,269 | 1,222 | 1,026 | ||
Copper | ||||||
Production2 (millions of pounds) | 96 | 123 | 440 | 415 | ||
Cost of sales2,10 ($ per pound) | 3.19 | 2.30 | 2.43 | 2.32 | ||
C1 cash costs2,11 ($ per pound) | 2.25 | 1.86 | 1.89 | 1.72 | ||
All-in sustaining costs2,11 ($ per pound) | 3.98 | 3.13 | 3.18 | 2.62 |
Q4 and Full Year 2022 Results Presentation
Webinar and Conference Call
President and CEO
Go to the webinar
US and
International (toll), +1 416 915 3239
The presentation materials will be available on Barrick’s website at www.barrick.com and the webinar will remain on the website for later viewing.
Q4 Dividend Declared with Record Annual Returns to Shareholders in 2022
Barrick today declared of a dividend of
In addition to the dividends paid in 2022, Barrick repurchased 24.25 million shares under the share buyback program that was announced in
“On the back of the company’s continuing strong operating performance, through the combination of the performance dividend policy and share buyback program, we have once again provided shareholders with record annual returns,” said senior executive vice-president and chief financial officer
Barrick Announces New Share Buyback Program
Barrick plans to undertake a new share repurchase program to buy back additional common shares.
Barrick’s Board of Directors has authorized a new program for the repurchase of up to
“After the success of last year’s buyback program, this new program gives us a further opportunity to repurchase our shares when we believe that they are trading in a price range that does not reflect the value of the Company’s mining and financial assets and future business prospects,” said
Under the program, repurchases can be made from time to time through published markets in
Barrick believes that, from time to time, the market price of its common shares trade at prices that may not adequately reflect their underlying value. The actual number of shares that may be purchased, if any, and the timing of such purchases, will be determined by Barrick based on a number of factors, including the Company’s financial performance, the availability of cash flows, and the consideration of other uses of cash, including capital investment opportunities, returns to shareholders, and debt reduction.
The repurchase program does not obligate the Company to acquire any particular number of common shares, and the program may be suspended or discontinued at any time at the Company’s discretion.
Significant Increase in Resources and Reseves Underpins Industry-Leading Production Profile Growth
Barrick grew attributable proven and probable gold mineral reserves by 6.7 million ounces net of depletion in 2022, while maintaining grade despite an increase in the reserve price assumption.
Reported at
Successful exploration at both the Lumwana and
Total attributable gold mineral resources grew by nearly 10% relative to 2021, and total attributable copper mineral resources more than doubled, growing by 124% year over year, both net of annual depletion. This growth was driven by the successful completion of a preliminary economic assessment supporting the
President and chief executive
“While we continue to evaluate all new opportunities against our strategic filters, we have always believed that finding our ounces is better than buying them, and this year’s resource and reserve statement showcases the unmatched potential of our organic growth pipeline,” said Bristow.
Mineral
“The substantial growth in our mineral resources lays the long-term foundation to potentially grow our current attributable production profile of approximately 5.5 million gold equivalent ounces19 per year to approximately 6.5 million gold equivalent ounces19 per year by the end of this decade, which would include production from Reko Diq and the
In
The Lumwana copper mineral resource base grew by 89%, net of depletion, relative to 2021. This follows the completion of the preliminary economic assessment on the
Within the
The reconstitution of the Reko Diq project added an attributable 18 billion pounds of copper17 at 0.44% with 15 million ounces gold17 at 0.26g/t to indicated resources, and an attributable 4.6 billion pounds of copper17 at 0.4% with 3.7 million ounces gold17 at 0.2g/t to inferred resources. These mineral resources reflect only three porphyries (H13, H14, H15) as well as the Tanjeel deposit within the cluster of Western Porphyries. Alongside the ongoing feasibility study update, the team is also planning to evaluate further known porphyry occurrences within the mining lease area.
In
Reko Diq Set to Transform Balochistan
Reko Diq, which upon completion is expected to be one of the largest copper mines in the world as well as a major gold producer, will have an enormously beneficial impact on the remote and neglected province of
The enormous mine, which will have a lifespan of multiple generations, is a partnership between Barrick, which owns 50% of the project and is the operator, the provincial government of
Barrick president and chief executive
“Barrick is highly experienced in developing and operating profitable mines in some of the world’s frontier regions, which also happen to hold the greatest potential for new discoveries. In
“Reko Diq is a classic example of how mining can be at the forefront of the achievement of the United Nations’ Social Development Goals. It will transform the
Completion of the feasibility study is scheduled for the end of 2024 and first production is targeted for 2028. In line with Barrick’s local recruitment policy, a
Barrick’s
Speaking to media at
“At the time of the merger with Randgold, the AME region had two Tier One mines. The newly proposed expansion that forms the core component of the ongoing
The Tanzanian gold mines, North Mara and Bulyanhulu, continued building on the complete turnaround effected by Barrick when it took over their management in
At the Kibali gold mine in the DRC, the mine’s three hydropower stations, supported by its battery storage system, kept energy costs at less than
AME’s estimated economic contribution to its host countries in 2022 exceeded
Greening the Grid in
The solar facility, which will cover 500 hectares with 544,908 modules, is expected to go into commercial production in the second quarter of 2024 and will supply 17% of NGM’s annual energy needs and reduce CO2 equivalent emissions by 254,000 tonnes per annum, an 8% reduction from NGM’s 2018 baseline. The TS power plant conversion project will cut an additional 526,000 tonnes of CO2 equivalent emissions per year, a 16% reduction from NGM’s 2018 baseline.
Consistent with Barrick’s global policy of employing, partnering, and advancing host communities and countries, NGM partnered with three Nevada-based contractors and will
domestically source over 90% of materials for the solar project. An engineering firm utilizing Nevada-based resources provided support for the design and permitting for the TS power plant conversion project.
Both NGM and Barrick have a strong focus on environmental management practices and are committed custodians of the unique lands, waters, flora, and fauna within the state of Nevada. These projects are key to Barrick’s roadmap targeting a 30% reduction in global emissions by 2030, while maintaining a steady production profile, with the goal of achieving net-zero by 2050.
Loulo-Gounkoto Complex Continues to Deliver Value to Stakeholders
Seventeen years after it went into production, Barrick’s Loulo-Gounkoto mining complex in
In 2022 it maintained its historically consistent performance by meeting its production guidance, solidified its long-term outlook and replaced its mined ounces for the fourth successive year. The initial development of a third underground mine at Gounkoto was commissioned and is on track to start ore production from stoping in the second quarter of 2023. Key geological structures within the Loulo district have indicated the potential for further discoveries.
Speaking to media at the mine recently, Barrick president and chief executive
“We continue to promote and develop our local partnerships, creating and contracting an all-Malian joint venture to mine the new
In line with Barrick’s GHG emissions reduction strategy, Loulo-Gounkoto is expanding its solar power plant by 40MW, targeting an annual CO2-e savings of more than 62kt. Since its commissioning in the third quarter of 2020, the solar power plant has cut emissions by 57,000 tonnes of CO2 equivalent emissions.
All-Terrain Woman
Pueblo Viejo heavy equipment operator
Born in the
Speaking Up to Stop
Open pit superintendent
“For all of us at times, it can be intimidating to speak up,” says Dahlman. “But knowing it could save a life is what gives me the courage to do so, no matter what the job is.
Ladies Lead in Development
Fourteen women employed across Barrick’s mines in the
APPENDIX
2023 Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS | ||||
2023 forecast attributable production (000s ozs) | 2023 forecast cost of sales8 ($/oz) | 2023 forecast total cash costs9 ($/oz) | 2023 forecast all-in sustaining costs9 ($/oz) | |
910 - 1,000 | 1,030 - 1,110 | 820 - 880 | 1,250 - 1,330 | |
Cortez (61.5%)22 | 580 - 650 | 1,080 - 1,160 | 680 - 740 | 930 - 1,010 |
300 - 340 | 1,290 - 1,370 | 900 - 960 | 1,170 - 1,250 | |
100 - 120 | 1,860 - 1,940 | 880 - 940 | 1,110 - 1,190 | |
0 - 10 | 2,120 - 2,200 | 730 - 790 | 1,080 - 1,160 | |
1,900 - 2,100 | 1,140 - 1,220 | 790 - 850 | 1,140 - 1,220 | |
150 - 170 | 1,400 - 1,480 | 1,210 - 1,270 | 1,590 - 1,670 | |
2,100 - 2,300 | 1,160 - 1,240 | 820 - 880 | 1,170 - 1,250 | |
Pueblo Viejo (60%) | 470 - 520 | 1,130 - 1,210 | 710 - 770 | 960 - 1,040 |
Veladero (50%) | 160 - 180 | 1,630 - 1,710 | 1,060 - 1,120 | 1,550 - 1,630 |
Porgera (47.5%)23 | — | — | — | — |
630 - 700 | 1,260 - 1,340 | 800 - 860 | 1,110 - 1,190 | |
Loulo-Gounkoto (80%) | 510 - 560 | 1,100 - 1,180 | 750 - 810 | 1,070 - 1,150 |
Kibali (45%) | 320 - 360 | 1,080 - 1,160 | 710 - 770 | 880 - 960 |
North Mara (84%) | 230 - 260 | 1,120 - 1,200 | 900 - 960 | 1,240 - 1,320 |
Bulyanhulu (84%) | 160 - 190 | 1,230 - 1,310 | 880 - 940 | 1,160 - 1,240 |
Tongon (89.7%) | 180 - 210 | 1,260 - 1,340 | 1,070 - 1,130 | 1,240 - 1,320 |
1,450 - 1,600 | 1,130 - 1,210 | 820 - 880 | 1,080 - 1,160 | |
Total attributable to Barrick24,25,26 | 4,200 - 4,600 | 1,170 - 1,250 | 820 - 880 | 1,170 - 1,250 |
COPPER PRODUCTION AND COSTS | ||||
2023 forecast attributable production (M lbs) | 2023 forecast cost of sales8 ($/lb) | 2023 forecast C1 cash costs9 ($/lb) | 2023 forecast all-in sustaining costs9 ($/lb) | |
Lumwana | 260 - 290 | 2.45 - 2.75 | 2.00 - 2.20 | 3.20 - 3.50 |
Zaldívar (50%) | 100 - 110 | 3.40 - 3.70 | 2.60 - 2.80 | 2.90 - 3.20 |
Jabal Sayid (50%) | 65 - 75 | 1.80 - 2.10 | 1.50 - 1.70 | 1.60 - 1.90 |
Total attributable to Barrick25 | 420 - 470 | 2.60 - 2.90 | 2.05 - 2.25 | 2.95 - 3.25 |
ATTRIBUTABLE CAPITAL EXPENDITURES7 | ||||
(millions) | ||||
Attributable minesite sustaining6,7 | 1,450 - 1,700 | |||
Attributable project6,7 | 750 - 900 | |||
Total attributable capital expenditures7 | 2,200 - 2,600 |
2023 OUTLOOK ASSUMPTIONS AND ECONOMIC SENSITIVITY ANALYSIS
2023 guidance assumption | Hypothetical change | Impact on EBITDA27 (millions) | Impact on TCC and AISC9,11 | |
Gold price sensitivity | +/- | ‘+/ | ‘+/ | |
Copper price sensitivity | ‘+/ | ‘+/- | ‘+/ |
Mineral Reserves and Mineral Resources
Gold Mineral Reserves1,2,3 | ||||||||||||
As at | PROVEN | PROBABLE | TOTAL | |||||||||
Tonnes | Grade | Contained ozs | Tonnes | Grade | Contained ozs | Tonnes | Grade | Contained ozs | ||||
Based on attributable ounces | (Mt) | (g/t) | (Moz) | (Mt) | (g/t) | (Moz) | (Mt) | (g/t) | (Moz) | |||
Bulyanhulu underground (84.00%) | 2.2 | 7.16 | 0.50 | 11 | 6.18 | 2.2 | 13 | 6.34 | 2.7 | |||
0.069 | 0.34 | 0.00076 | — | — | — | 0.069 | 0.34 | 0.00076 | ||||
5.8 | 0.20 | 0.038 | 7.5 | 0.39 | 0.094 | 13 | 0.31 | 0.13 | ||||
5.9 | 0.21 | 0.039 | 7.5 | 0.39 | 0.094 | 13 | 0.31 | 0.13 | ||||
Kibali surface | 5.4 | 2.07 | 0.36 | 15 | 2.19 | 1.0 | 20 | 2.16 | 1.4 | |||
Kibali underground | 9.1 | 4.31 | 1.3 | 14 | 4.15 | 1.9 | 23 | 4.21 | 3.2 | |||
Kibali (45.00%) total | 14 | 3.47 | 1.6 | 29 | 3.15 | 3.0 | 44 | 3.26 | 4.6 | |||
Loulo-Gounkoto surface | 11 | 2.48 | 0.89 | 14 | 2.78 | 1.3 | 25 | 2.65 | 2.2 | |||
Loulo-Gounkoto underground | 8.9 | 4.86 | 1.4 | 19 | 5.04 | 3.1 | 28 | 4.98 | 4.5 | |||
Loulo-Gounkoto (80.00%) total | 20 | 3.54 | 2.3 | 34 | 4.08 | 4.4 | 54 | 3.87 | 6.7 | |||
North Mara surface | 0.25 | 3.43 | 0.028 | 29 | 2.05 | 1.9 | 29 | 2.06 | 2.0 | |||
North Mara underground | 0.21 | 3.68 | 0.025 | 9.3 | 3.42 | 1.0 | 9.5 | 3.43 | 1.0 | |||
North Mara (84.00%) total | 0.46 | 3.55 | 0.053 | 39 | 2.38 | 2.9 | 39 | 2.40 | 3.0 | |||
Tongon surface (89.70%) | 3.9 | 2.36 | 0.30 | 3.9 | 2.14 | 0.26 | 7.8 | 2.25 | 0.56 | |||
47 | 3.17 | 4.8 | 120 | 3.24 | 13 | 170 | 3.22 | 18 | ||||
Norte Abierto surface (50.00%) | 110 | 0.65 | 2.4 | 480 | 0.59 | 9.2 | 600 | 0.60 | 12 | |||
Porgera surface4 | — | — | — | 5.0 | 3.55 | 0.57 | 5.0 | 3.55 | 0.57 | |||
Porgera underground4 | 0.66 | 6.69 | 0.14 | 2.2 | 7.05 | 0.51 | 2.9 | 6.96 | 0.65 | |||
Porgera (24.50%) total4 | 0.66 | 6.69 | 0.14 | 7.2 | 4.64 | 1.1 | 7.9 | 4.81 | 1.2 | |||
Pueblo Viejo surface (60.00%) | 35 | 2.29 | 2.6 | 140 | 2.16 | 9.7 | 170 | 2.19 | 12 | |||
Veladero surface (50.00%) | 8.0 | 0.41 | 0.11 | 77 | 0.74 | 1.8 | 85 | 0.71 | 1.9 | |||
160 | 1.02 | 5.2 | 710 | 0.96 | 22 | 870 | 0.97 | 27 | ||||
9.8 | 2.48 | 0.79 | 63 | 2.24 | 4.6 | 73 | 2.27 | 5.4 | ||||
11 | 9.27 | 3.3 | 6.0 | 7.90 | 1.5 | 17 | 8.79 | 4.8 | ||||
21 | 6.07 | 4.1 | 69 | 2.73 | 6.1 | 90 | 3.50 | 10 | ||||
Cortez surface | 0.76 | 2.65 | 0.065 | 110 | 0.88 | 3.0 | 110 | 0.90 | 3.1 | |||
Cortez underground5 | 0.60 | 9.44 | 0.18 | 26 | 7.74 | 6.4 | 26 | 7.78 | 6.5 | |||
Cortez (61.50%) total | 1.4 | 5.63 | 0.25 | 130 | 2.22 | 9.4 | 130 | 2.26 | 9.6 | |||
— | — | — | 18 | 1.49 | 0.86 | 18 | 1.49 | 0.86 | ||||
0.50 | 4.93 | 0.079 | 4.6 | 4.87 | 0.73 | 5.1 | 4.88 | 0.81 | ||||
0.50 | 4.93 | 0.079 | 23 | 2.19 | 1.6 | 23 | 2.25 | 1.7 | ||||
8.5 | 0.71 | 0.19 | 96 | 0.58 | 1.8 | 100 | 0.59 | 2.0 | ||||
10 | 2.29 | 0.75 | 0.28 | 1.38 | 0.013 | 11 | 2.27 | 0.77 | ||||
10 | 10.20 | 3.4 | 12 | 9.51 | 3.8 | 23 | 9.82 | 7.2 | ||||
21 | 6.26 | 4.1 | 13 | 9.33 | 3.8 | 33 | 7.43 | 8.0 | ||||
52 | 5.24 | 8.7 | 330 | 2.12 | 23 | 380 | 2.54 | 31 | ||||
TOTAL | 260 | 2.26 | 19 | 1,200 | 1.53 | 57 | 1,400 | 1.67 | 76 | |||
See “Mineral Reserves and Resources Endnotes”. |
Copper Mineral Reserves1,2,3,7 | ||||||||||||
As at | PROVEN | PROBABLE | TOTAL | |||||||||
Tonnes | Cu Grade | Contained Cu | Tonnes | Cu Grade | Contained Cu | Tonnes | Cu Grade | Contained Cu | ||||
Based on attributable pounds | (Mt) | (%) | (Mlb) | (Mt) | (%) | (Mlb) | (Mt) | (%) | (Mlb) | |||
Bulyanhulu underground (84.00%) | 2.2 | 0.33 | 16 | 11 | 0.34 | 84 | 13 | 0.34 | 100 | |||
0.069 | 2.64 | 4.0 | — | — | — | 0.069 | 2.64 | 4.0 | ||||
5.8 | 2.25 | 290 | 7.5 | 2.28 | 380 | 13 | 2.26 | 670 | ||||
5.9 | 2.25 | 290 | 7.5 | 2.28 | 380 | 13 | 2.27 | 670 | ||||
Lumwana surface (100%) | 89 | 0.51 | 1,000 | 390 | 0.59 | 5,200 | 480 | 0.58 | 6,200 | |||
97 | 0.61 | 1,300 | 410 | 0.62 | 5,600 | 510 | 0.62 | 7,000 | ||||
Norte Abierto surface (50.00%) | 110 | 0.19 | 480 | 480 | 0.23 | 2,400 | 600 | 0.22 | 2,900 | |||
Zaldívar surface (50.00%) | 170 | 0.44 | 1,600 | 38 | 0.31 | 260 | 210 | 0.42 | 1,900 | |||
280 | 0.34 | 2,100 | 520 | 0.23 | 2,700 | 810 | 0.27 | 4,800 | ||||
11 | 0.16 | 40 | 130 | 0.16 | 470 | 140 | 0.16 | 510 | ||||
11 | 0.16 | 40 | 130 | 0.16 | 470 | 140 | 0.16 | 510 | ||||
TOTAL | 390 | 0.40 | 3,500 | 1,100 | 0.37 | 8,800 | 1,500 | 0.38 | 12,000 | |||
See “Mineral Reserves and Resources Endnotes”. |
Silver Mineral Reserves1,2,3,7 | ||||||||||||
As at | PROVEN | PROBABLE | TOTAL | |||||||||
Tonnes | Ag Grade | Contained Ag | Tonnes | Ag Grade | Contained Ag | Tonnes | Ag Grade | Contained Ag | ||||
Based on attributable ounces | (Mt) | (g/t) | (Moz) | (Mt) | (g/t) | (Moz) | (Mt) | (g/t) | (Moz) | |||
Bulyanhulu underground (84.00%) | 2.2 | 6.90 | 0.48 | 11 | 5.91 | 2.1 | 13 | 6.07 | 2.6 | |||
2.2 | 6.90 | 0.48 | 11 | 5.91 | 2.1 | 13 | 6.07 | 2.6 | ||||
Norte Abierto surface (50.00%) | 110 | 1.91 | 7.0 | 480 | 1.43 | 22 | 600 | 1.52 | 29 | |||
Pueblo Viejo surface (60.00%) | 35 | 12.94 | 15 | 140 | 13.76 | 62 | 170 | 13.60 | 76 | |||
Veladero surface (50.00%) | 8.0 | 12.72 | 3.3 | 77 | 14.62 | 36 | 85 | 14.44 | 39 | |||
160 | 4.92 | 25 | 700 | 5.34 | 120 | 860 | 5.26 | 150 | ||||
8.5 | 7.46 | 2.0 | 96 | 6.24 | 19 | 100 | 6.34 | 21 | ||||
8.5 | 7.46 | 2.0 | 96 | 6.24 | 19 | 100 | 6.34 | 21 | ||||
TOTAL | 170 | 5.07 | 28 | 810 | 5.45 | 140 | 980 | 5.39 | 170 | |||
See “Mineral Reserves and Resources Endnotes”. |
Gold Mineral Resources1,3,8,9 | |||||||||||||
As at | MEASURED (M)10 | INDICATED (I)10 | (M) + (I)10 | INFERRED11 | |||||||||
Tonnes | Grade | Contained ozs | Tonnes | Grade | Contained ozs | Contained ozs | Tonnes | Grade | Contained ozs | ||||
Based on attributable ounces | (Mt) | (g/t) | (Moz) | (Mt) | (g/t) | (Moz) | (Moz) | (Mt) | (g/t) | (Moz) | |||
Bulyanhulu surface | 0.0029 | 6.70 | 0.00062 | — | — | — | 0.00062 | — | — | — | |||
Bulyanhulu underground | 3.3 | 10.24 | 1.1 | 21 | 5.88 | 3.9 | 5.0 | 17 | 8.4 | 4.6 | |||
Bulyanhulu (84.00%) total | 3.3 | 10.24 | 1.1 | 21 | 5.88 | 3.9 | 5.0 | 17 | 8.4 | 4.6 | |||
0.069 | 0.34 | 0.00076 | — | — | — | 0.00076 | — | — | — | ||||
7.8 | 0.33 | 0.083 | 7.3 | 0.41 | 0.097 | 0.18 | 1.5 | 0.6 | 0.027 | ||||
7.9 | 0.33 | 0.084 | 7.3 | 0.41 | 0.097 | 0.18 | 1.5 | 0.6 | 0.027 | ||||
Kibali surface | 7.4 | 2.19 | 0.52 | 26 | 2.06 | 1.7 | 2.2 | 4.8 | 2.1 | 0.32 | |||
Kibali underground | 12 | 4.63 | 1.8 | 24 | 3.97 | 3.1 | 4.9 | 8.4 | 2.9 | 0.79 | |||
Kibali (45.00%) total | 20 | 3.70 | 2.3 | 50 | 2.98 | 4.8 | 7.1 | 13 | 2.6 | 1.1 | |||
Loulo-Gounkoto surface | 12 | 2.49 | 0.97 | 16 | 2.90 | 1.5 | 2.4 | 6.5 | 1.9 | 0.38 | |||
Loulo-Gounkoto underground | 17 | 4.39 | 2.5 | 28 | 4.63 | 4.2 | 6.7 | 16 | 2.9 | 1.5 | |||
Loulo-Gounkoto (80.00%) total | 30 | 3.61 | 3.4 | 44 | 4.02 | 5.7 | 9.1 | 22 | 2.6 | 1.9 | |||
North Mara surface | 18 | 2.25 | 1.3 | 23 | 1.79 | 1.3 | 2.6 | 4.1 | 1.4 | 0.19 | |||
North Mara underground | 0.77 | 2.28 | 0.057 | 28 | 2.21 | 2.0 | 2.0 | 15 | 1.6 | 0.75 | |||
North Mara (84.00%) total | 18 | 2.25 | 1.3 | 50 | 2.02 | 3.3 | 4.6 | 19 | 1.6 | 0.93 | |||
Tongon surface (89.70%) | 4.5 | 2.57 | 0.37 | 5.3 | 2.32 | 0.40 | 0.77 | 0.82 | 2.5 | 0.064 | |||
83 | 3.23 | 8.7 | 180 | 3.18 | 18 | 27 | 73 | 3.7 | 8.6 | ||||
Alturas surface (100%) | — | — | — | — | — | — | — | 180 | 0.9 | 5.4 | |||
Norte Abierto surface (50.00%) | 190 | 0.63 | 3.9 | 1,100 | 0.53 | 19 | 22 | 370 | 0.4 | 4.4 | |||
43 | 1.86 | 2.6 | 390 | 1.49 | 19 | 21 | 15 | 1.7 | 0.86 | ||||
Porgera surface4 | 0.39 | 3.98 | 0.049 | 14 | 2.78 | 1.3 | 1.3 | 6.1 | 2.2 | 0.43 | |||
Porgera underground4 | 0.99 | 6.16 | 0.20 | 5.0 | 6.04 | 0.97 | 1.2 | 1.8 | 6.6 | 0.39 | |||
Porgera (24.50%) total4 | 1.4 | 5.55 | 0.25 | 19 | 3.62 | 2.3 | 2.5 | 8.0 | 3.2 | 0.82 | |||
Pueblo Viejo surface (60.00%) | 46 | 2.08 | 3.1 | 190 | 1.99 | 12 | 15 | 4.6 | 1.8 | 0.26 | |||
Reko Diq surface (50.00%)6 | — | — | — | 1,800 | 0.26 | 15 | 15 | 570 | 0.2 | 3.7 | |||
Veladero surface (50.00%) | 9.1 | 0.40 | 0.12 | 120 | 0.71 | 2.6 | 2.8 | 14 | 0.6 | 0.27 | |||
290 | 1.06 | 9.9 | 3,600 | 0.60 | 69 | 79 | 1,200 | 0.4 | 16 | ||||
See “Mineral Reserves and Resources Endnotes”. |
Gold Mineral Resources1,3,8,9 | |||||||||||||
As at | MEASURED (M)10 | INDICATED (I)10 | (M) + (I)10 | INFERRED11 | |||||||||
Tonnes | Grade | Contained ozs | Tonnes | Grade | Contained ozs | Contained ozs | Tonnes | Grade | Contained ozs | ||||
Based on attributable ounces | (Mt) | (g/t) | (Moz) | (Mt) | (g/t) | (Moz) | (Moz) | (Mt) | (g/t) | (Moz) | |||
29 | 2.18 | 2.0 | 140 | 1.94 | 8.5 | 11 | 60 | 1.2 | 2.4 | ||||
24 | 7.80 | 5.9 | 13 | 6.74 | 2.7 | 8.7 | 13 | 7.3 | 3.2 | ||||
53 | 4.69 | 8.0 | 150 | 2.35 | 11 | 19 | 73 | 2.3 | 5.5 | ||||
Cortez surface | 0.99 | 2.78 | 0.089 | 160 | 0.87 | 4.4 | 4.5 | 110 | 0.4 | 1.5 | |||
Cortez underground5 | 1.3 | 7.66 | 0.32 | 37 | 6.87 | 8.3 | 8.6 | 15 | 5.9 | 2.9 | |||
Cortez (61.50%) total | 2.3 | 5.53 | 0.40 | 190 | 2.02 | 13 | 13 | 130 | 1.1 | 4.4 | |||
Donlin surface (50.00%) | 3.9 | 2.52 | 0.31 | 270 | 2.24 | 19 | 20 | 46 | 2.0 | 3.0 | |||
Fourmile underground (100%) | — | — | — | 1.5 | 10.01 | 0.49 | 0.49 | 7.8 | 10.5 | 2.7 | |||
— | — | — | 42 | 1.40 | 1.9 | 1.9 | 2.4 | 1.0 | 0.079 | ||||
0.72 | 5.11 | 0.12 | 11 | 4.80 | 1.6 | 1.8 | 3.0 | 5.1 | 0.50 | ||||
0.72 | 5.11 | 0.12 | 52 | 2.09 | 3.5 | 3.6 | 5.4 | 3.3 | 0.58 | ||||
0.30 | 3.53 | 0.034 | 4.9 | 2.56 | 0.41 | 0.44 | 1.1 | 0.9 | 0.029 | ||||
— | — | — | 1.1 | 10.68 | 0.38 | 0.38 | 0.53 | 9.1 | 0.16 | ||||
0.30 | 3.53 | 0.034 | 6.1 | 4.05 | 0.79 | 0.82 | 1.6 | 3.6 | 0.18 | ||||
12 | 0.64 | 0.25 | 230 | 0.50 | 3.6 | 3.9 | 30 | 0.3 | 0.32 | ||||
24 | 2.14 | 1.6 | 21 | 2.07 | 1.4 | 3.0 | 6.7 | 1.7 | 0.37 | ||||
13 | 9.49 | 3.9 | 19 | 8.51 | 5.3 | 9.2 | 1.9 | 6.9 | 0.42 | ||||
36 | 4.72 | 5.5 | 40 | 5.19 | 6.6 | 12 | 8.6 | 2.9 | 0.79 | ||||
110 | 4.18 | 15 | 940 | 1.93 | 58 | 73 | 300 | 1.8 | 17 | ||||
TOTAL | 480 | 2.13 | 33 | 4,700 | 0.96 | 150 | 180 | 1,500 | 0.8 | 42 | |||
See “Mineral Reserves and Resources Endnotes”. |
Copper Mineral Resources1,3,7,8,9 | ||||||||||||||
As at | MEASURED (M)10 | INDICATED (I)10 | (M) + (I)10 | INFERRED11 | ||||||||||
Tonnes | Grade | Contained lbs | Tonnes | Grade | Contained lbs | Contained lbs | Tonnes | Grade | Contained lbs | |||||
Based on attributable pounds | (Mt) | (%) | (Mlb) | (Mt) | (%) | (Mlb) | (Mlb) | (Mt) | (%) | (Mlb) | ||||
Bulyanhulu surface | 0.0029 | 0.32 | 0.021 | — | — | — | 0.021 | — | — | — | ||||
Bulyanhulu underground | 3.3 | 0.44 | 32 | 21 | 0.31 | 140 | 170 | 17 | 0.4 | 130 | ||||
Bulyanhulu (84.00%) total | 3.3 | 0.44 | 32 | 21 | 0.31 | 140 | 170 | 17 | 0.4 | 130 | ||||
0.069 | 2.64 | 4.0 | — | — | — | 4.0 | — | — | — | |||||
7.8 | 2.60 | 450 | 7.3 | 2.36 | 380 | 830 | 1.5 | 1.3 | 44 | |||||
7.9 | 2.60 | 450 | 7.3 | 2.36 | 380 | 830 | 1.5 | 1.3 | 44 | |||||
Lumwana surface (100%) | 140 | 0.48 | 1,500 | 960 | 0.55 | 12,000 | 13,000 | 820 | 0.5 | 8700 | ||||
150 | 0.59 | 2,000 | 990 | 0.56 | 12,000 | 14,000 | 840 | 0.5 | 8,900 | |||||
Norte Abierto surface (50.00%) | 170 | 0.21 | 790 | 1,000 | 0.21 | 4,700 | 5,500 | 360 | 0.2 | 1,400 | ||||
Reko Diq surface (50.00%)6 | — | — | — | 1,900 | 0.44 | 18,000 | 18,000 | 590 | 0.4 | 4,600 | ||||
Zaldívar surface (50.00%) | 360 | 0.40 | 3,200 | 200 | 0.37 | 1,600 | 4,800 | 20 | 0.4 | 160 | ||||
530 | 0.34 | 4,000 | 3,100 | 0.36 | 25,000 | 29,000 | 970 | 0.3 | 6,200 | |||||
15 | 0.15 | 52 | 320 | 0.15 | 1,000 | 1,100 | 32 | 0.1 | 93 | |||||
15 | 0.15 | 52 | 320 | 0.15 | 1,000 | 1,100 | 32 | 0.1 | 93 | |||||
TOTAL | 700 | 0.39 | 6,000 | 4,500 | 0.39 | 38,000 | 44,000 | 1,800 | 0.4 | 15,000 | ||||
See “Mineral Reserves and Resources Endnotes”. |
Silver Mineral Resources1,3,7,8,9 | ||||||||||||||
As at | MEASURED (M)10 | INDICATED (I)10 | (M) + (I)10 | INFERRED11 | ||||||||||
Tonnes | Ag Grade | Contained Ag | Tonnes | Ag Grade | Contained Ag | Contained Ag | Tonnes | Ag Grade | Contained Ag | |||||
Based on attributable ounces | (Mt) | (g/t) | (Moz) | (Mt) | (g/t) | (Moz) | (Moz) | (Mt) | (g/t) | (Moz) | ||||
Bulyanhulu surface | 0.0029 | 7.00 | 0.00065 | — | — | — | 0.00065 | — | — | — | ||||
Bulyanhulu underground | 3.3 | 8.52 | 0.90 | 21 | 5.54 | 3.7 | 4.6 | 17 | 6.2 | 3.4 | ||||
Bulyanhulu (84.00%) total | 3.3 | 8.52 | 0.90 | 21 | 5.54 | 3.7 | 4.6 | 17 | 6.2 | 3.4 | ||||
3.3 | 8.52 | 0.90 | 21 | 5.54 | 3.7 | 4.6 | 17 | 6.2 | 3.4 | |||||
Norte Abierto surface (50.00%) | 190 | 1.62 | 10 | 1,100 | 1.23 | 43 | 53 | 370 | 1.0 | 11 | ||||
Pascua-Lama surface (100%) | 43 | 57.21 | 79 | 390 | 52.22 | 660 | 740 | 15 | 17.8 | 8.8 | ||||
Pueblo Viejo surface (60.00%) | 46 | 11.69 | 17 | 190 | 12.32 | 75 | 92 | 4.6 | 10.5 | 1.5 | ||||
Veladero surface (50.00%) | 9.1 | 11.39 | 3.3 | 120 | 14.42 | 54 | 57 | 14 | 14.3 | 6.3 | ||||
290 | 11.73 | 110 | 1,800 | 14.51 | 830 | 940 | 400 | 2.2 | 28 | |||||
12 | 6.80 | 2.7 | 230 | 5.79 | 42 | 45 | 30 | 5.6 | 5.4 | |||||
12 | 6.80 | 2.7 | 230 | 5.79 | 42 | 45 | 30 | 5.6 | 5.4 | |||||
TOTAL | 310 | 11.50 | 110 | 2,000 | 13.44 | 880 | 990 | 450 | 2.5 | 37 | ||||
See “Mineral Reserves and Resources Endnotes”. |
Summary Gold Mineral Reserves1,2,3 | ||||||||
For the years ended | 2022 | 2021 | ||||||
Ownership | Tonnes | Grade | Ounces | Ownership | Tonnes | Grade | Ounces | |
Based on attributable ounces | % | (Mt) | (g/t) | (Moz) | % | (Mt) | (g/t) | (Moz) |
Bulyanhulu surface | 84.00% | — | — | — | 84.00% | 0.00010 | 10.42 | 0.000035 |
Bulyanhulu underground | 84.00% | 13 | 6.34 | 2.7 | 84.00% | 10 | 7.76 | 2.5 |
Bulyanhulu Total | 84.00% | 13 | 6.34 | 2.7 | 84.00% | 10 | 7.76 | 2.5 |
50.00% | 0.069 | 0.34 | 0.00076 | 50.00% | 0.072 | 0.34 | 0.00079 | |
50.00% | 13 | 0.31 | 0.13 | 50.00% | 13 | 0.26 | 0.11 | |
Jabal Sayid Total | 50.00% | 13 | 0.31 | 0.13 | 50.00% | 13 | 0.26 | 0.11 |
Kibali surface | 45.00% | 20 | 2.16 | 1.4 | 45.00% | 17 | 2.45 | 1.3 |
Kibali underground | 45.00% | 23 | 4.21 | 3.2 | 45.00% | 21 | 4.54 | 3.0 |
Kibali Total | 45.00% | 44 | 3.26 | 4.6 | 45.00% | 37 | 3.60 | 4.3 |
Loulo-Gounkoto surface | 80.00% | 25 | 2.65 | 2.2 | 80.00% | 22 | 2.98 | 2.1 |
Loulo-Gounkoto underground | 80.00% | 28 | 4.98 | 4.5 | 80.00% | 29 | 4.86 | 4.6 |
Loulo-Gounkoto Total | 80.00% | 54 | 3.87 | 6.7 | 80.00% | 51 | 4.06 | 6.7 |
North Mara surface | 84.00% | 29 | 2.06 | 2.0 | 84.00% | 38 | 1.73 | 2.1 |
North Mara underground | 84.00% | 9.5 | 3.43 | 1.0 | 84.00% | 6.8 | 3.44 | 0.75 |
North Mara Total | 84.00% | 39 | 2.40 | 3.0 | 84.00% | 44 | 1.99 | 2.8 |
Tongon surface | 89.70% | 7.8 | 2.25 | 0.56 | 89.70% | 7.9 | 1.87 | 0.47 |
170 | 3.22 | 18 | 160 | 3.22 | 17 | |||
Norte Abierto surface | 50.00% | 600 | 0.60 | 12 | 50.00% | 600 | 0.60 | 12 |
Porgera surface4 | 24.50% | 5.0 | 3.55 | 0.57 | 24.50% | 4.8 | 3.66 | 0.56 |
Porgera underground4 | 24.50% | 2.9 | 6.96 | 0.65 | 24.50% | 3.2 | 6.34 | 0.66 |
Porgera Total4 | 24.50% | 7.9 | 4.81 | 1.2 | 24.50% | 8.0 | 4.75 | 1.2 |
Pueblo Viejo surface | 60.00% | 170 | 2.19 | 12 | 60.00% | 76 | 2.22 | 5.4 |
Veladero surface | 50.00% | 85 | 0.71 | 1.9 | 50.00% | 90 | 0.77 | 2.2 |
870 | 0.97 | 27 | 770 | 0.83 | 21 | |||
61.50% | 73 | 2.27 | 5.4 | 61.50% | 84 | 2.23 | 6.0 | |
61.50% | 17 | 8.79 | 4.8 | 61.50% | 19 | 8.86 | 5.4 | |
Carlin Total | 61.50% | 90 | 3.50 | 10 | 61.50% | 100 | 3.46 | 11 |
Cortez surface | 61.50% | 110 | 0.90 | 3.1 | 61.50% | 39 | 1.68 | 2.1 |
Cortez underground5 | 61.50% | 26 | 7.78 | 6.5 | 61.50% | 27 | 7.79 | 6.7 |
Cortez Total | 61.50% | 130 | 2.26 | 9.6 | 61.50% | 65 | 4.17 | 8.8 |
100% | 18 | 1.49 | 0.86 | 100% | 0.018 | 0.32 | 0.00018 | |
100% | 5.1 | 4.88 | 0.81 | 100% | 6.4 | 5.18 | 1.1 | |
Hemlo Total | 100% | 23 | 2.25 | 1.7 | 100% | 6.4 | 5.16 | 1.1 |
61.50% | — | — | — | 61.50% | 0.61 | 1.18 | 0.023 | |
61.50% | 100 | 0.59 | 2.0 | 61.50% | 100 | 0.60 | 2.0 | |
61.50% | 11 | 2.27 | 0.77 | 61.50% | 26 | 2.05 | 1.7 | |
61.50% | 23 | 9.82 | 7.2 | 61.50% | 21 | 10.39 | 6.9 | |
Turquoise Ridge Total | 61.50% | 33 | 7.43 | 8.0 | 61.50% | 46 | 5.74 | 8.6 |
380 | 2.54 | 31 | 330 | 3.04 | 32 | |||
TOTAL | 1,400 | 1.67 | 76 | 1,300 | 1.71 | 69 | ||
See “Mineral Reserves and Resources Endnotes”. | ||||||||
Mineral Reserves and Resources Endnotes
- Mineral reserves (“reserves”) and mineral resources (“resources”) have been estimated as at
December 31, 2022 (unless otherwise noted) in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) as required by Canadian securities regulatory authorities. ForUnited States reporting purposes, theSEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with theSEC under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”). These amendments became effectiveFebruary 25, 2019 (the “SEC Modernization Rules”) with compliance required for the first fiscal year beginning on or afterJanuary 1, 2021 . The SEC Modernization Rules replace the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7, which was rescinded from and after the required compliance date of the SEC Modernization Rules. As a result of the adoption of the SEC Modernization Rules, theSEC now recognizes estimates of “measured”, “indicated” and “inferred” mineral resources. In addition, theSEC has amended its definitions of “proven mineral reserves” and “probable mineral reserves” to be substantially similar to the correspondingCanadian Institute of Mining , Metallurgy and Petroleum definitions, as required by NI 43-101. U.S. investors should understand that “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, U.S. investors are cautioned not to assume that any part or all of Barrick’s mineral resources constitute or will be converted into reserves. Mineral resource and mineral reserve estimations have been prepared by employees of Barrick, its joint venture partners or its joint venture operating companies, as applicable, under the supervision ofRichard Peattie ,Africa and Middle East Mineral Resource Manager,Chad Yuhasz ,Latin America & Asia Pacific Mineral Resource Manager andCraig Fiddes , Manager - Resource Modeling,Nevada Gold Mines and reviewed bySimon Bottoms , Barrick’s Mineral Resource Management and Evaluation Executive. For 2022, reserves have been estimated based on an assumed gold price ofUS$1,300 per ounce, an assumed silver price ofUS$18.00 per ounce, and an assumed copper price ofUS$3.00 per pound and long-term average exchange rates of1.30 CAD /US$, except at Zaldívar, where mineral reserves for 2022 were calculated using Antofagasta guidance and an updated assumed copper price ofUS$3.30 per pound. The Zaldívar joint venture is operated by Antofagasta. Subsequent to the publication of Barrick’s press release ofFebruary 9, 2023 , entitled “Focus on Tier One Assets Delivers Significant Increase in Resources and Reserves, Underpinning Industry-Leading Production Profile Growth” Antofagasta updated their assumed copper price for 2022 reserves from$3.10 per pound to$3.30 per pound, which does not change Barrick’s 2022 reserves and resources estimates for the joint venture as originally disclosed onFebruary 9, 2023 and set forth in the tables above. For 2021, reserves were estimated based on an assumed gold price ofUS$1,200 per ounce, an assumed silver price ofUS$16.50 per ounce, and an assumed copper price ofUS$2.75 per pound and long-term average exchange rates of1.30 CAD /US$., except at Zaldívar, where mineral reserves for 2021 were calculating using Antofagasta guidance and an assumed copper price of$3.10 per pound. Reserve estimates incorporate current and/or expected mine plans and cost levels at each property. Varying cut-off grades have been used depending on the mine and type of ore contained in the reserves. Barrick’s normal data verification procedures have been employed in connection with the calculations. Verification procedures include industry-standard quality control practices. Resources as atDecember 31, 2022 have been estimated using varying cut-off grades, depending on both the type of mine or project, its maturity and ore types at each property. - In confirming our annual reserves for each of our mineral properties, projects, and operations, we conduct a reserve test on
December 31 of each year to verify that the future undiscounted cash flow from reserves is positive. The cash flow ignores all sunk costs and only considers future operating and closure expenses as well as any future capital costs. - All mineral resource and mineral reserve estimates of tonnes, Au oz, Ag oz and Cu lb are reported to the second significant digit.
- Porgera mineral reserves and mineral resources are reported on a 24.5% interest basis, reflecting Barrick’s expected ownership interest following the implementation of the binding
February 3, 2022 Commencement Agreement. The Commencement Agreement provides, among other things, for ownership of Porgera to be held in a new joint venture owned 51% byPapua New Guinea (“PNG”) stakeholders and 49% byBarrick Niugini Limited (“BNL”) or an affiliate. BNL is jointly owned on a 50/50 basis byBarrick and Zijin Mining Group and will retain operatorship of the mine under the terms of the Commencement Agreement. Efforts are ongoing to execute the remaining definitive agreements to implement the Commencement Agreement and finalize a timeline for the reopening of the Porgera mine and resumption of full mine operations. For additional information, see page 48 of Barrick’s Fourth Quarter and Year End Report 2022. - Cortez underground includes 21 million tonnes at 7.27g/t for 4.9 million ounces of probable reserves, 29 million tonnes at 6.49g/t for 6.1 million ounces of indicated resources and 15 million tonnes at 5.9g/t for 2.8 million ounces of inferred resources related to Goldrush. As noted in endnote 9, mineral resources are reported on an inclusive basis.
- Reko Diq mineral resources are reported on a 50% interest basis, reflecting Barrick’s ownership interest following the completion of the transaction allowing for the reconstitution of the project on
December 15, 2022 . This completed the process that began earlier in 2022 following the conclusion of a framework agreement among the Governments ofPakistan andBalochistan province,Barrick and Antofagasta plc, which provided a path for the development of the project under a reconstituted structure. The reconstituted project is held 50% by Barrick and 50% by Pakistani stakeholders. Barrick is the operator of the project. For additional information, see page 9 of Barrick’s Fourth Quarter and Year End Report 2022. - 2022 polymetallic mineral resources and mineral reserves are estimated using the combined value of gold, copper & silver and accordingly are reported as gold, copper and silver mineral resources and mineral reserves.
- Mineral resources which are not mineral reserves do not have demonstrated economic viability.
- Mineral resources are reported inclusive of mineral reserves.
- All measured and indicated mineral resource estimates of grade and all proven and probable mineral reserve estimates of grade for Au g/t, Ag g/t and Cu % are reported to two decimal places.
- All inferred mineral resource estimates of grade for Au g/t, Ag g/t and Cu % are reported to one decimal place.
Production and Cost Summary - Gold
For the three months ended | For the years ended | |||||||
Change | Change | |||||||
Gold produced (000s oz attributable basis) | 516 | 425 | 21 | % | 1,862 | 2,036 | (9 | %) |
Gold produced (000s oz 100% basis) | 838 | 691 | 21 | % | 3,028 | 3,311 | (9 | %) |
Cost of sales ($/oz) | 1,257 | 1,242 | 1 | % | 1,210 | 1,072 | 13 | % |
Total cash costs ($/oz)b | 906 | 924 | (2 | %) | 876 | 705 | 24 | % |
All-in sustaining costs ($/oz)b | 1,179 | 1,333 | (12 | %) | 1,214 | 949 | 28 | % |
Gold produced (000s oz attributable basis) | 265 | 229 | 16 | % | 966 | 923 | 5 | % |
Gold produced (000s oz 100% basis) | 432 | 372 | 16 | % | 1,571 | 1,501 | 5 | % |
Cost of sales ($/oz) | 1,081 | 1,137 | (5 | %) | 1,069 | 968 | 10 | % |
Total cash costs ($/oz)b | 878 | 943 | (7 | %) | 877 | 782 | 12 | % |
All-in sustaining costs ($/oz)b | 1,217 | 1,304 | (7 | %) | 1,212 | 1,087 | 11 | % |
Cortez (61.5%)d | ||||||||
Gold produced (000s oz attributable basis) | 140 | 98 | 43 | % | 450 | 509 | (12 | %) |
Gold produced (000s oz 100% basis) | 226 | 160 | 43 | % | 731 | 828 | (12 | %) |
Cost of sales ($/oz) | 1,284 | 1,056 | 22 | % | 1,164 | 1,122 | 4 | % |
Total cash costs ($/oz)b | 848 | 770 | 10 | % | 815 | 763 | 7 | % |
All-in sustaining costs ($/oz)b | 1,037 | 1,426 | (27 | %) | 1,258 | 1,013 | 24 | % |
Gold produced (000s oz attributable basis) | 78 | 62 | 26 | % | 282 | 334 | (16 | %) |
Gold produced (000s oz 100% basis) | 127 | 102 | 26 | % | 459 | 543 | (16 | %) |
Cost of sales ($/oz) | 1,518 | 1,509 | 1 | % | 1,434 | 1,122 | 28 | % |
Total cash costs ($/oz)b | 1,089 | 1,105 | (1 | %) | 1,035 | 749 | 38 | % |
All-in sustaining costs ($/oz)b | 1,304 | 1,423 | (8 | %) | 1,296 | 892 | 45 | % |
Gold produced (000s oz attributable basis) | 30 | 30 | 0 | % | 109 | 109 | 0 | % |
Gold produced (000s oz 100% basis) | 48 | 47 | 0 | % | 177 | 178 | 0 | % |
Cost of sales ($/oz) | 1,901 | 1,964 | (3 | %) | 2,039 | 1,922 | 6 | % |
Total cash costs ($/oz)b | 946 | 953 | (1 | %) | 914 | 398 | 130 | % |
All-in sustaining costs ($/oz)b | 1,037 | 1,084 | (4 | %) | 1,074 | 533 | 102 | % |
Gold produced (000s oz attributable basis) | 3 | 6 | (50 | %) | 55 | 161 | (66 | %) |
Gold produced (000s oz 100% basis) | 5 | 10 | (50 | %) | 90 | 261 | (66 | %) |
Cost of sales ($/oz) | 1,812 | 1,769 | 2 | % | 1,282 | 739 | 73 | % |
Total cash costs ($/oz)b | 616 | 662 | (7 | %) | 435 | 188 | 131 | % |
All-in sustaining costs ($/oz)b | 664 | 684 | (3 | %) | 454 | 238 | 91 | % |
Pueblo Viejo (60%) | ||||||||
Gold produced (000s oz attributable basis) | 98 | 121 | (19 | %) | 428 | 488 | (12 | %) |
Gold produced (000s oz 100% basis) | 163 | 202 | (19 | %) | 713 | 814 | (12 | %) |
Cost of sales ($/oz) | 1,215 | 1,097 | 11 | % | 1,132 | 896 | 26 | % |
Total cash costs ($/oz)b | 764 | 733 | 4 | % | 725 | 541 | 34 | % |
All-in sustaining costs ($/oz)b | 1,065 | 1,063 | 0 | % | 1,026 | 745 | 38 | % |
Loulo-Gounkoto (80%) | ||||||||
Gold produced (000s oz attributable basis) | 139 | 130 | 7 | % | 547 | 560 | (2 | %) |
Gold produced (000s oz 100% basis) | 174 | 162 | 7 | % | 684 | 700 | (2 | %) |
Cost of sales ($/oz) | 1,216 | 1,220 | 0 | % | 1,153 | 1,049 | 10 | % |
Total cash costs ($/oz)b | 822 | 845 | (3 | %) | 778 | 650 | 20 | % |
All-in sustaining costs ($/oz)b | 1,102 | 1,216 | (9 | %) | 1,076 | 970 | 11 | % |
Kibali (45%) | ||||||||
Gold produced (000s oz attributable basis) | 97 | 83 | 17 | % | 337 | 366 | (8 | %) |
Gold produced (000s oz 100% basis) | 216 | 184 | 17 | % | 750 | 812 | (8 | %) |
Cost of sales ($/oz) | 1,570 | 1,047 | 50 | % | 1,243 | 1,016 | 22 | % |
Total cash costs ($/oz)b | 617 | 731 | (16 | %) | 703 | 627 | 12 | % |
All-in sustaining costs ($/oz)b | 981 | 876 | 12 | % | 948 | 818 | 16 | % |
Veladero (50%) | ||||||||
Gold produced (000s oz attributable basis) | 50 | 41 | 22 | % | 195 | 172 | 13 | % |
Gold produced (000s oz 100% basis) | 99 | 83 | 22 | % | 389 | 344 | 13 | % |
Cost of sales ($/oz) | 2,309 | 1,430 | 61 | % | 1,628 | 1,256 | 30 | % |
Total cash costs ($/oz)b | 954 | 893 | 7 | % | 890 | 816 | 9 | % |
All-in sustaining costs ($/oz)b | 1,526 | 1,570 | (3 | %) | 1,528 | 1,493 | 2 | % |
Porgera (47.5%)e | ||||||||
Gold produced (000s oz attributable basis) | — | — | — | — | — | — | % | |
Gold produced (000s oz 100% basis) | — | — | — | — | — | — | % | |
Cost of sales ($/oz) | — | — | — | — | — | — | % | |
Total cash costs ($/oz)b | — | — | — | — | — | — | % | |
All-in sustaining costs ($/oz)b | — | — | — | — | — | — | % | |
Tongon (89.7%) | ||||||||
Gold produced (000s oz attributable basis) | 63 | 41 | 54 | % | 180 | 187 | (4 | %) |
Gold produced (000s oz 100% basis) | 70 | 46 | 54 | % | 201 | 209 | (4 | %) |
Cost of sales ($/oz) | 1,381 | 1,744 | (21 | %) | 1,748 | 1,504 | 16 | % |
Total cash costs ($/oz)b | 1,070 | 1,462 | (27 | %) | 1,396 | 1,093 | 28 | % |
All-in sustaining costs ($/oz)b | 1,404 | 1,607 | (13 | %) | 1,592 | 1,208 | 32 | % |
Gold produced (000s oz) | 38 | 28 | 36 | % | 133 | 150 | (11 | %) |
Cost of sales ($/oz) | 1,451 | 1,670 | (13 | %) | 1,628 | 1,693 | (4 | %) |
Total cash costs ($/oz)b | 1,227 | 1,446 | (15 | %) | 1,409 | 1,388 | 2 | % |
All-in sustaining costs ($/oz)b | 1,557 | 1,865 | (17 | %) | 1,788 | 1,970 | (9 | %) |
North Mara | ||||||||
Gold produced (000s oz attributable basis) | 70 | 71 | (1 | %) | 263 | 260 | 1 | % |
Gold produced (000s oz 100% basis) | 84 | 84 | (1 | %) | 313 | 309 | 1 | % |
Cost of sales ($/oz) | 1,030 | 956 | 8 | % | 979 | 966 | 1 | % |
Total cash costs ($/oz)b | 758 | 737 | 3 | % | 741 | 777 | (5 | %) |
All-in sustaining costs ($/oz)b | 1,301 | 951 | 37 | % | 1,028 | 1,001 | 3 | % |
Buzwagif | ||||||||
Gold produced (000s oz attributable basis) | — | — | 40 | (100 | %) | |||
Gold produced (000s oz 100% basis) | — | — | 47 | (100 | %) | |||
Cost of sales ($/oz) | — | — | 1,334 | (100 | %) | |||
Total cash costs ($/oz)b | — | — | 1,284 | (100 | %) | |||
All-in sustaining costs ($/oz)b | — | — | 1,291 | (100 | %) | |||
Bulyanhulu | ||||||||
Gold produced (000s oz attributable basis) | 49 | 48 | 2 | % | 196 | 178 | 10 | % |
Gold produced (000s oz 100% basis) | 58 | 58 | 2 | % | 233 | 212 | 10 | % |
Cost of sales ($/oz) | 1,237 | 1,229 | 1 | % | 1,211 | 1,079 | 12 | % |
Total cash costs ($/oz)b | 896 | 898 | 0 | % | 868 | 709 | 22 | % |
All-in sustaining costs ($/oz)b | 1,401 | 1,170 | 20 | % | 1,156 | 891 | 30 | % |
Total Attributable to Barrickg | ||||||||
Gold produced (000s oz) | 1,120 | 988 | 13 | % | 4,141 | 4,437 | (7 | %) |
Cost of sales ($/oz)h | 1,324 | 1,226 | 8 | % | 1,241 | 1,093 | 14 | % |
Total cash costs ($/oz)b | 868 | 891 | (3 | %) | 862 | 725 | 19 | % |
All-in sustaining costs ($/oz)b | 1,242 | 1,269 | (2 | %) | 1,222 | 1,026 | 19 | % |
- These results represent our 61.5% interest in
Carlin (including NGM’s 60% interest in South Arturo up untilMay 30, 2021 and 100% interest thereafter), Cortez,Turquoise Ridge ,Phoenix andLong Canyon . - Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 71 to 89 of Barrick’s Q4 2022 MD&A.
- Includes our share of South Arturo. On
September 7, 2021 , NGM announced it had entered into an Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not already own in exchange for the Lone Tree andBuffalo Mountain properties and infrastructure. Operating results within our 61.5% interest inCarlin includes NGM’s 60% interest in South Arturo up untilMay 30, 2021 , and 100% interest thereafter, and operating results within our 61.5% interest inPhoenix includesLone Tree up untilMay 30, 2021 , reflecting the terms of the Exchange Agreement which closed onOctober 14, 2021 . - Starting in the first quarter of 2021, Goldrush is reported as part of Cortez as it is operated by Cortez management. Comparative periods have been restated to include Goldrush.
- As Porgera was placed on care and maintenance on
April 25, 2020 , no operating data or per ounce data has been provided starting the third quarter of 2020. - With the end of mining at Buzwagi in the third quarter of 2021, as previously reported, we have ceased to include production or non-GAAP cost metrics for Buzwagi from
October 1, 2021 onwards. - Excludes Pierina, Golden Sunlight, Morila (40%) and Lagunas Norte for all periods and Buzwagi starting in the fourth quarter of 2021 as these assets are producing incidental ounces while in closure or care and maintenance. Lagunas Norte was divested in
June 2021 and Morila was divested inNovember 2020 . - Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using Barrick’s ownership share).
Production and Cost Summary - Copper
For the three months ended | For the years ended | |||||||
Change | Change | |||||||
Lumwana | ||||||||
Copper production (millions lbs) | 53 | 82 | (35 | %) | 267 | 242 | 10 | % |
Cost of sales ($/lb) | 3.56 | 2.19 | 63 | % | 2.42 | 2.25 | 8 | % |
C1 cash costs ($/lb)a | 2.34 | 1.78 | 31 | % | 1.89 | 1.62 | 17 | % |
All-in sustaining costs ($/lb)a | 4.86 | 3.50 | 39 | % | 3.63 | 2.80 | 30 | % |
Zaldívar (50%) | ||||||||
Copper production (millions lbs attributable basis) | 25 | 23 | 9 | % | 98 | 97 | 1 | % |
Copper production (millions lbs 100% basis) | 50 | 45 | 9 | % | 196 | 193 | 1 | % |
Cost of sales ($/lb) | 3.55 | 3.20 | 11 | % | 3.12 | 3.19 | (2 | %) |
C1 cash costs ($/lb)a | 2.69 | 2.45 | 10 | % | 2.36 | 2.38 | (1 | %) |
All-in sustaining costs ($/lb)a | 3.60 | 2.94 | 22 | % | 2.95 | 2.94 | 0 | % |
Copper production (millions lbs attributable basis) | 18 | 18 | 0 | % | 75 | 76 | (1 | %) |
Copper production (millions lbs 100% basis) | 36 | 37 | 0 | % | 151 | 152 | (1 | %) |
Cost of sales ($/lb) | 1.72 | 1.58 | 9 | % | 1.52 | 1.38 | 10 | % |
C1 cash costs ($/lb)a | 1.42 | 1.41 | 1 | % | 1.26 | 1.18 | 7 | % |
All-in sustaining costs ($/lb)a | 1.54 | 1.52 | 1 | % | 1.36 | 1.33 | 2 | % |
Total Attributable to Barrick | ||||||||
Copper production (millions lbs) | 96 | 123 | (22 | %) | 440 | 415 | 6 | % |
Cost of sales ($/lb)b | 3.19 | 2.30 | 39 | % | 2.43 | 2.32 | 5 | % |
C1 cash costs ($/lb)a | 2.25 | 1.86 | 21 | % | 1.89 | 1.72 | 10 | % |
All-in sustaining costs ($/lb)a | 3.98 | 3.13 | 27 | % | 3.18 | 2.62 | 21 | % |
- Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 71 to 89 of Barrick’s Q4 2022 MD&A.
- Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick’s ownership share).
Financial and Operating Highlights
For the three months ended | For the years ended | ||||||||||||
Change | Change | ||||||||||||
Financial Results ($ millions) | |||||||||||||
Revenues | 2,774 | 2,527 | 10 | % | 11,013 | 11,985 | (8 | )% | |||||
Cost of sales | 2,093 | 1,815 | 15 | % | 7,497 | 7,089 | 6 | % | |||||
Net (loss) earningsa | (735 | ) | 241 | (405 | )% | 432 | 2,022 | (79 | )% | ||||
Adjusted net earningsb | 220 | 224 | (2 | )% | 1,326 | 2,065 | (36 | )% | |||||
Adjusted EBITDAb | 1,286 | 1,155 | 11 | % | 5,613 | 7,258 | (23 | )% | |||||
Adjusted EBITDA marginb,c | 46 | % | 46 | % | 0 | % | 51 | % | 61 | % | (16 | )% | |
Minesite sustaining capital expendituresb,d | 557 | 571 | (2 | )% | 2,071 | 1,673 | 24 | % | |||||
Project capital expendituresb,d | 324 | 213 | 52 | % | 949 | 747 | 27 | % | |||||
Total consolidated capital expendituresd,e | 891 | 792 | 13 | % | 3,049 | 2,435 | 25 | % | |||||
Net cash provided by operating activities | 795 | 758 | 5 | % | 3,481 | 4,378 | (20 | )% | |||||
Net cash provided by operating activities marginf | 29 | % | 30 | % | (3 | )% | 32 | % | 37 | % | (14 | )% | |
Free cash flowb | (96 | ) | (34 | ) | (182 | )% | 432 | 1,943 | (78 | )% | |||
Net earnings per share (basic and diluted) | (0.42 | ) | 0.14 | (400 | )% | 0.24 | 1.14 | (79 | )% | ||||
Adjusted net earnings (basic)b per share | 0.13 | 0.13 | 0 | % | 0.75 | 1.16 | (35 | )% | |||||
Weighted average diluted common shares (millions of shares) | 1,759 | 1,768 | (1 | )% | 1,771 | 1,779 | 0 | % | |||||
Operating Results | |||||||||||||
Gold production (thousands of ounces)g | 1,120 | 988 | 13 | % | 4,141 | 4,437 | (7 | )% | |||||
Gold sold (thousands of ounces)g | 1,111 | 997 | 11 | % | 4,141 | 4,468 | (7 | )% | |||||
Market gold price ($/oz) | 1,726 | 1,729 | 0 | % | 1,800 | 1,799 | 0 | % | |||||
Realized gold priceb,g ($/oz) | 1,728 | 1,722 | 0 | % | 1,795 | 1,790 | 0 | % | |||||
Gold cost of sales (Barrick’s share)g,h ($/oz) | 1,324 | 1,226 | 8 | % | 1,241 | 1,093 | 14 | % | |||||
Gold total cash costsb,g ($/oz) | 868 | 891 | (3 | )% | 862 | 725 | 19 | % | |||||
Gold all-in sustaining costsb,g ($/oz) | 1,242 | 1,269 | (2 | )% | 1,222 | 1,026 | 19 | % | |||||
Copper production (millions of pounds)g | 96 | 123 | (22 | )% | 440 | 415 | 6 | % | |||||
Copper sold (millions of pounds)g | 99 | 120 | (18 | )% | 445 | 423 | 5 | % | |||||
Market copper price ($/lb) | 3.63 | 3.51 | 3 | % | 3.99 | 4.23 | (6 | )% | |||||
Realized copper priceb,g ($/lb) | 3.81 | 3.24 | 18 | % | 3.85 | 4.32 | (11 | )% | |||||
Copper cost of sales (Barrick’s share)g,i ($/lb) | 3.19 | 2.30 | 39 | % | 2.43 | 2.32 | 5 | % | |||||
Copper C1 cash costsb,g ($/lb) | 2.25 | 1.86 | 21 | % | 1.89 | 1.72 | 10 | % | |||||
Copper all-in sustaining costsb,g ($/lb) | 3.98 | 3.13 | 27 | % | 3.18 | 2.62 | 21 | % | |||||
As at | As at | Change | As at | As at | Change | ||||||||
Financial Position ($ millions) | |||||||||||||
Debt (current and long-term) | 4,782 | 5,095 | (6 | )% | 4,782 | 5,150 | (7 | )% | |||||
Cash and equivalents | 4,440 | 5,240 | (15 | )% | 4,440 | 5,280 | (16 | )% | |||||
Debt, net of cash | 342 | (145 | ) | (336 | )% | 342 | (130 | ) | (363 | )% |
- Net earnings represents net earnings attributable to the equity holders of the Company.
- Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 71 to 89 of Barrick’s Q4 2022 MD&A.
- Represents adjusted EBITDA divided by revenue.
- Amounts presented on a consolidated cash basis. Project capital expenditures are included in our calculation of all-in costs, but not included in our calculation of all-in sustaining costs.
- Total consolidated capital expenditures also includes capitalized interest of
$10 million and$29 million , respectively, for the three months and year endedDecember 31, 2022 (September 30, 2022 :$8 million ; 2021:$15 million ). - Represents net cash provided by operating activities divided by revenue.
- On an attributable basis.
- Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using Barrick’s ownership share).
- Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick’s ownership share).
Consolidated Statements of Income
For the years ended | 2022 | 2021 | ||||
Revenue (notes 5 and 6) | $ | 11,013 | $ | 11,985 | ||
Costs and expenses (income) | ||||||
Cost of sales (notes 5 and 7) | 7,497 | 7,089 | ||||
General and administrative expenses (note 11) | 159 | 151 | ||||
Exploration, evaluation and project expenses (notes 5 and 8) | 350 | 287 | ||||
Impairment charges (reversals) (notes 10 and 21) | 1,671 | (63 | ) | |||
Loss on currency translation | 16 | 29 | ||||
Closed mine rehabilitation (note 27b) | (136 | ) | 18 | |||
Income from equity investees (note 16) | (258 | ) | (446 | ) | ||
Other (income) expense (note 9) | (268 | ) | (67 | ) | ||
Income before finance items and income taxes | 1,982 | 4,987 | ||||
Finance costs, net (note 14) | (301 | ) | (355 | ) | ||
Income before income taxes | 1,681 | 4,632 | ||||
Income tax expense (note 12) | (664 | ) | (1,344 | ) | ||
Net income | $ | 1,017 | $ | 3,288 | ||
Attributable to: | ||||||
Equity holders of | $ | 432 | $ | 2,022 | ||
Non-controlling interests (note 32) | $ | 585 | $ | 1,266 | ||
Earnings (loss) per share data attributable to the equity holders of | ||||||
Net income | ||||||
Basic | $ | 0.24 | $ | 1.14 | ||
Diluted | $ | 0.24 | $ | 1.14 |
The notes to these consolidated financial statements, which are contained in the Fourth Quarter and Year End Report, available on our website are an integral part of these consolidated financial statements.
Consolidated Statements of Comprehensive Income
For the years ended | 2022 | 2021 | |||
Net income | $ | 1,017 | $ | 3,288 | |
Other comprehensive income (loss), net of taxes | |||||
Items that may be reclassified subsequently to profit or loss: | |||||
Realized losses on derivatives designated as cash flow hedges, net of tax $nil and $nil | 1 | 3 | |||
Currency translation adjustments, net of tax $nil and $nil | 1 | 2 | |||
Items that will not be reclassified to profit or loss: | |||||
Actuarial gain on post-employment benefit obligations, net of tax $nil and ( | 8 | 2 | |||
Net change in value of equity investments, net of tax ( | 39 | (44 | ) | ||
Total other comprehensive income (loss) | 49 | (37 | ) | ||
Total comprehensive income | $ | 1,066 | $ | 3,251 | |
Attributable to: | |||||
Equity holders of | $ | 481 | $ | 1,985 | |
Non-controlling interests | $ | 585 | $ | 1,266 |
The notes to these consolidated financial statements, which are contained in the Fourth Quarter and Year End Report, available on our website are an integral part of these consolidated financial statements.
Consolidated Statements of Cash Flow
For the years ended | 2022 | 2021 | ||||
OPERATING ACTIVITIES | ||||||
Net income | $ | 1,017 | $ | 3,288 | ||
Adjustments for the following items: | ||||||
Depreciation | 1,997 | 2,102 | ||||
Finance costs (note 14)1 | 301 | 355 | ||||
Net impairment charges (reversals) (notes 10 and 21) | 1,671 | (63 | ) | |||
Income tax expense (note 12) | 664 | 1,344 | ||||
Income from investment in equity investees (note 16) | (258 | ) | (446 | ) | ||
Loss on currency translation | 16 | 29 | ||||
Gain on sale of non-current assets (note 9) | (405 | ) | (213 | ) | ||
Change in working capital (note 15) | (322 | ) | (273 | ) | ||
Other operating activities (note 15) | (217 | ) | (203 | ) | ||
Operating cash flows before interest and income taxes | 4,464 | 5,920 | ||||
Interest paid | (305 | ) | (303 | ) | ||
Interest received1 | 89 | 35 | ||||
Income taxes paid2 | (767 | ) | (1,274 | ) | ||
Net cash provided by operating activities | 3,481 | 4,378 | ||||
INVESTING ACTIVITIES | ||||||
Property, plant and equipment | ||||||
Capital expenditures (note 5) | (3,049 | ) | (2,435 | ) | ||
Sales proceeds | 88 | 35 | ||||
Divestitures (note 4) | — | 27 | ||||
Investment (purchases) sales | 381 | (46 | ) | |||
Dividends received from equity method investments (note 16) | 869 | 520 | ||||
Shareholder loan repayments from equity method investments (note 16) | — | 2 | ||||
Net cash used in investing activities | (1,711 | ) | (1,897 | ) | ||
FINANCING ACTIVITIES | ||||||
Lease repayments | (20 | ) | (20 | ) | ||
Debt repayments | (375 | ) | (7 | ) | ||
Dividends (note 31) | (1,143 | ) | (634 | ) | ||
Return of capital (note 31) | — | (750 | ) | |||
Share buyback program (note 31) | (424 | ) | — | |||
Funding from non-controlling interests (note 32) | — | 12 | ||||
Disbursements to non-controlling interests (note 32) | (833 | ) | (1,104 | ) | ||
Other financing activities (note 15) | 191 | 115 | ||||
Net cash used in financing activities | (2,604 | ) | (2,388 | ) | ||
Effect of exchange rate changes on cash and equivalents | (6 | ) | (1 | ) | ||
Net increase (decrease) in cash and equivalents | (840 | ) | 92 | |||
Cash and equivalents at beginning of year (note 25a) | 5,280 | 5,188 | ||||
Cash and equivalents at the end of year | $ | 4,440 | $ | 5,280 |
1 2021 figures have been restated to present the change in presentation to present interest received (
2 Income taxes paid excludes $126 million (2021: $69 million) of income taxes payable that were settled against offsetting VAT receivables.
The notes to these consolidated financial statements, which are contained in the Fourth Quarter and Year End Report, available on our website are an integral part of these consolidated financial statements.
Consolidated Balance Sheets
As at December | As at December | |||||
(in millions of | 31, 2022 | 31, 2021 | ||||
ASSETS | ||||||
Current assets | ||||||
Cash and equivalents (note 25a) | $ | 4,440 | $ | 5,280 | ||
Accounts receivable (note 18) | 554 | 623 | ||||
Inventories (note 17) | 1,781 | 1,734 | ||||
Other current assets (note 18) | 1,690 | 612 | ||||
Total current assets | 8,465 | 8,249 | ||||
Non-current assets | ||||||
Non-current portion of inventory (note 17) | 2,819 | 2,636 | ||||
Equity in investees (note 16) | 3,983 | 4,594 | ||||
Property, plant and equipment (note 19) | 25,821 | 24,954 | ||||
Intangible assets (note 20a) | 149 | 150 | ||||
3,581 | 4,769 | |||||
Deferred income tax assets (note 30) | 19 | 29 | ||||
Other assets (note 22) | 1,128 | 1,509 | ||||
Total assets | $ | 45,965 | $ | 46,890 | ||
LIABILITIES AND EQUITY | ||||||
Current liabilities | ||||||
Accounts payable (note 23) | $ | 1,556 | $ | 1,448 | ||
Debt (note 25b) | 13 | 15 | ||||
Current income tax liabilities | 163 | 285 | ||||
Other current liabilities (note 24) | 1,388 | 338 | ||||
Total current liabilities | 3,120 | 2,086 | ||||
Non-current liabilities | ||||||
Debt (note 25b) | 4,769 | 5,135 | ||||
Provisions (note 27) | 2,211 | 2,768 | ||||
Deferred income tax liabilities (note 30) | 3,247 | 3,293 | ||||
Other liabilities (note 29) | 1,329 | 1,301 | ||||
Total liabilities | 14,676 | 14,583 | ||||
Equity | ||||||
Capital stock (note 31) | 28,114 | 28,497 | ||||
Deficit | (7,282 | ) | (6,566 | ) | ||
Accumulated other comprehensive (loss) income | 26 | (23 | ) | |||
Other | 1,913 | 1,949 | ||||
Total equity attributable to | 22,771 | 23,857 | ||||
Non-controlling interests (note 32) | 8,518 | 8,450 | ||||
Total equity | 31,289 | 32,307 | ||||
Contingencies and commitments (notes 2, 17, 19 and 36) | ||||||
Total liabilities and equity | $ | 45,965 | $ | 46,890 |
The notes to these consolidated financial statements, which are contained in the Fourth Quarter and Year End Report, available on our website are an integral part of these consolidated financial statements.
Consolidated Statements of Changes in Equity
Attributable to equity holders of the Company | ||||||||||||||||
(in millions of | Common Shares (in thousands) | Capital stock | Deficit | Accumulated other comprehensive income (loss)1 | Other2 | Total equity attributable to shareholders | Non- controlling interests | Total equity | ||||||||
At | 1,779,331 | $28,497 | ($6,566 | ) | ($23 | ) | $1,949 | $23,857 | $8,450 | $32,307 | ||||||
Net income | — | — | 432 | — | — | 432 | 585 | 1,017 | ||||||||
Total other comprehensive income | — | — | — | 49 | — | 49 | — | 49 | ||||||||
Total comprehensive income | — | $— | $— | |||||||||||||
Transactions with owners | ||||||||||||||||
Dividends (note 31) | — | — | (1,143 | ) | — | — | (1,143 | ) | — | (1,143 | ) | |||||
Reko Diq reconstitution (note 4) | — | — | — | — | — | — | 329 | 329 | ||||||||
Disbursements to non-controlling interests (note 32) | — | — | — | — | — | — | (846 | ) | (846 | ) | ||||||
Dividend reinvestment plan (note 31) | 269 | 5 | (5 | ) | — | — | — | — | — | |||||||
Share buyback program (note 31) | (24,250 | ) | (388 | ) | — | — | (36 | ) | (424 | ) | — | (424 | ) | |||
Total transactions with owners | (23,981 | ) | ( | ) | ( | ) | $— | ( | ) | ( | ) | ( | ) | ( | ) | |
At | 1,755,350 | $28,114 | ($7,282 | ) | $26 | $1,913 | $22,771 | $8,518 | $31,289 | |||||||
At | 1,778,190 | $29,236 | ($7,949 | ) | $14 | $2,040 | $23,341 | $8,369 | $31,710 | |||||||
Net income | — | — | 2,022 | — | — | 2,022 | 1,266 | 3,288 | ||||||||
Total other comprehensive loss | — | — | — | (37 | ) | — | (37 | ) | — | (37 | ) | |||||
Total comprehensive income (loss) | — | $— | ( | ) | $— | |||||||||||
Transactions with owners | ||||||||||||||||
Dividends (note 31) | — | — | (634 | ) | — | — | (634 | ) | — | (634 | ) | |||||
Return of capital (note 31) | — | (750 | ) | — | — | — | (750 | ) | — | (750 | ) | |||||
Acquisition of South Arturo non-controlling interest (note 4) | — | — | — | — | (85 | ) | (85 | ) | (86 | ) | (171 | ) | ||||
Issued on exercise of stock options | 50 | — | — | — | — | — | — | — | ||||||||
Funding from non-controlling interests (note 32) | — | — | — | — | — | — | 12 | 12 | ||||||||
Disbursements to non-controlling interests (note 32) | — | — | — | — | — | — | (1,111 | ) | (1,111 | ) | ||||||
Dividend reinvestment plan (note 31) | 192 | 5 | (5 | ) | — | — | — | — | — | |||||||
Share-based payments | 899 | 6 | — | — | (6 | ) | — | — | — | |||||||
Total transactions with owners | 1,141 | ( | ) | ( | ) | $— | ( | ) | ( | ) | ( | ) | ( | ) | ||
At | 1,779,331 | $28,497 | ($6,566 | ) | ($23 | ) | $1,949 | $23,857 | $8,450 | $32,307 |
1 Includes cumulative translation adjustments as at
2 Includes additional paid-in capital as at
The notes to these consolidated financial statements, which are contained in the Fourth Quarter and Year End Report, available on our website are an integral part of these consolidated financial statements.
Technical Information
The scientific and technical information contained in this press release has been reviewed and approved by
All mineral reserve and mineral resource estimates are estimated in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Unless otherwise noted, such mineral reserve and mineral resource estimates are as of
Endnotes
Endnote 1
The repurchase program does not obligate Barrick to acquire any particular number of common shares and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.
Endnote 2
On an attributable basis.
Endnote 3
“Realized price” is a non-GAAP financial performance measure which excludes from sales: treatment and refining charges; and cumulative catch-up adjustment to revenue relating to our streaming arrangements. We believe this provides investors and analysts with a more accurate measure with which to compare to market gold prices and to assess our gold sales performance. For those reasons, management believes that this measure provides a more accurate reflection of our Company’s past performance and is a better indicator of its expected performance in future periods. The realized price measure is intended to provide additional information, and does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of sales as determined under IFRS. Other companies may calculate this measure differently. The following table reconciles realized prices to the most directly comparable IFRS measure. Further details on these non-GAAP financial performance measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Sales to Realized Price per ounce/pound
For the three months ended | For the years ended | ||||||||||||||
($ millions, except per ounce/pound information in dollars) | Gold | Copper | Gold | Copper | |||||||||||
Sales | 2,535 | 2,277 | 170 | 200 | 9,920 | 10,738 | 11,670 | 868 | 962 | 697 | |||||
Sales applicable to non-controlling interests | (785 | ) | (700 | ) | 0 | 0 | (3,051 | ) | (3,323 | ) | (3,494 | ) | 0 | 0 | 0 |
Sales applicable to equity method investmentsa,b | 164 | 152 | 160 | 134 | 597 | 660 | 648 | 646 | 707 | 483 | |||||
Sales applicable to sites in closure or care and maintenancec | (11 | ) | (14 | ) | 0 | 0 | (55 | ) | (88 | ) | (170 | ) | 0 | 0 | 0 |
Treatment and refining charges | 15 | 3 | 47 | 54 | 23 | 10 | 7 | 199 | 161 | 157 | |||||
Otherd | 0 | 0 | 0 | 0 | 0 | 2 | 13 | 0 | 0 | 0 | |||||
Revenues – as adjusted | 1,918 | 1,718 | 377 | 388 | 7,434 | 7,999 | 8,674 | 1,713 | 1,830 | 1,337 | |||||
Ounces/pounds sold (000s ounces/millions pounds)c | 1,111 | 997 | 99 | 120 | 4,141 | 4,468 | 4,879 | 445 | 423 | 457 | |||||
Realized gold/copper price per ounce/pounde | 1,728 | 1,722 | 3.81 | 3.24 | 1,795 | 1,790 | 1,778 | 3.85 | 4.32 | 2.92 |
- Represents sales of
$164 million and$597 million , respectively, for the three months and year endedDecember 31, 2022 (September 30, 2022 :$152 million ; 2021:$661 million ; 2020:$648 million ) applicable to our 45% equity method investment in Kibali and $nil and $nil, respectively (September 30, 2022 : $nil; 2021: $nil; 2020: $nil) applicable to our 40% equity method investment in Morila up until its divestiture inNovember 2020 for gold. Represents sales of $91 million and $390 million, respectively, for the three months and year endedDecember 31, 2022 (September 30, 2022 :$82 million ; 2021: $423 million; 2020:$298 million ) applicable to our 50% equity method investment in Zaldívar and$74 million and$275 million , respectively (September 30, 2022 :$57 million ; 2021:$305 million ; 2020:$204 million ) applicable to our 50% equity method investment inJabal Sayid for copper. - Sales applicable to equity method investments are net of treatment and refinement charges.
- Excludes Pierina, Morila up until its divestiture in
November 2020 , Lagunas Norte up until its divestiture inJune 2021 , and Buzwagi starting in the fourth quarter of 2021. Some of these assets are producing incidental ounces while in closure or care and maintenance. - Represents cumulative catch-up adjustment to revenue relating to our streaming arrangements. Refer to note 2f to the Financial Statements for more information.
- Realized price per ounce/pound may not calculate based on amounts presented in this table.
Endnote 4
“Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial performance measures. Adjusted net earnings excludes the following from net earnings: impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and investments; acquisition/disposition gains/losses; foreign currency translation gains/losses; significant tax adjustments; other items that are not indicative of the underlying operating performance of our core mining business; and tax effect and non-controlling interest of the above items. Management uses this measure internally to evaluate our underlying operating performance for the reporting periods presented and to assist with the planning and forecasting of future operating results. Management believes that adjusted net earnings is a useful measure of our performance because impairment charges, acquisition/disposition gains/losses and significant tax adjustments do not reflect the underlying operating performance of our core mining business and are not necessarily indicative of future operating results. Adjusted net earnings and adjusted net earnings per share are intended to provide additional information only and does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently. The following table reconciles these non-GAAP financial measures to the most directly comparable IFRS measure. Further details on these non-GAAP financial performance measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.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
For the three months ended | For the years ended | ||||||||||
($ millions, except per share amounts in dollars) | |||||||||||
Net (loss) earnings attributable to equity holders of the Company | (735 | ) | 241 | 432 | 2,022 | 2,324 | |||||
Impairment charges (reversals) related to non-current assetsa | 1,642 | 24 | 1,671 | (63 | ) | (269 | ) | ||||
Acquisition/disposition gainsb | (319 | ) | (64 | ) | (405 | ) | (213 | ) | (180 | ) | |
Loss on currency translation | 4 | 3 | 16 | 29 | 50 | ||||||
Significant tax adjustmentsc | (4 | ) | 44 | 95 | 125 | (119 | ) | ||||
Other expense (income) adjustmentsd | 126 | (27 | ) | 17 | 73 | 71 | |||||
Non-controlling intereste | (271 | ) | 4 | (274 | ) | 64 | (12 | ) | |||
Tax effecte | (223 | ) | (1 | ) | (226 | ) | 28 | 177 | |||
Adjusted net earnings | 220 | 224 | 1,326 | 2,065 | 2,042 | ||||||
Net (loss) earnings per sharef | (0.42 | ) | 0.14 | 0.24 | 1.14 | 1.31 | |||||
Adjusted net earnings per sharef | 0.13 | 0.13 | 0.75 | 1.16 | 1.15 |
- Net impairment charges for the three month period and year ended
December 31, 2022 primarily relate to a goodwill impairment at Loulo-Gounkoto, and non-current asset impairments at Veladero andLong Canyon , partially offset by an impairment reversal at Reko Diq. Net impairment charges for the prior year mainly relate to non-current asset reversals at Lagunas Norte. - Acquisition/disposition gains for the three month period and year ended
December 31, 2022 primarily relate to a gain as Barrick’s interest in the Reko Diq project increased from 37.5% to 50%. The year endedDecember 31, 2022 was further impacted by the sale of a portfolio of royalties to Maverix Metals Inc. and the sale of a portfolio of royalties by NGM to Gold Royalty Corp. Acquisition/disposition gains for the prior year primarily relate to the gain on the sale ofLone Tree . - Significant tax adjustments in the current year primarily relate to deferred tax recovery as a result of net impairment charges; foreign currency translation gains and losses on tax balances; the Porgera mine continuing to be on care and maintenance; updates to the rehabilitation provision for our non-operating mines; and the recognition and derecognition of deferred tax assets. In 2021, significant tax adjustments primarily relate to deferred tax expense as a result of tax reform measures in
Argentina , the foreign exchange impact on current tax expense inPeru and the remeasurement of current and deferred tax balances, the acquisition of the 40% interest in South Arturo that NGM did not already own, the sale of Lagunas Norte, the settlement of the Massawa Senegalese tax dispute and the recognition/derecognition of our deferred taxes in various jurisdictions. - Other expense adjustments for the three month period and year ended
December 31, 2022 mainly relate to a net realizable value impairment of leach pad inventory at Veladero, care and maintenance expenses at Porgera and supplies obsolescence write-off at Bulyanhulu and North Mara. The prior year was impacted by care and maintenance expenses at Porgera and a$25 million litigation settlement. - Non-controlling interest and tax effect for the current year primarily relates to impairment charges (reversals) related to non-current assets.
- Calculated using weighted average number of shares outstanding under the basic method of earnings per share.
Endnote 5
“Free cash flow” is a non-GAAP financial measure that deducts capital expenditures from net cash provided by operating activities. Management believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Free cash flow is intended to provide additional information only and does not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate this measure differently. Further details on this non-GAAP financial performance measure are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. The following table reconciles this non-GAAP financial measure to the most directly comparable IFRS measure.
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
For the three months ended | For the years ended | ||||||||||
($ millions) | |||||||||||
Net cash provided by operating activities | 795 | 758 | 3,481 | 4,378 | 5,417 | ||||||
Capital expenditures | (891 | ) | (792 | ) | (3,049 | ) | (2,435 | ) | (2,054 | ) | |
Free cash flow | (96 | ) | (34 | ) | 432 | 1,943 | 3,363 |
Endnote 6
Capital expenditures are classified into minesite sustaining capital expenditures or project capital expenditures depending on the nature of the expenditure. Minesite sustaining capital expenditures is the capital spending required to support current production levels. Project capital expenditures represent the capital spending at new projects and major, discrete projects at existing operations intended to increase net present value through higher production or longer mine life. Management believes this to be a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of all-in sustaining costs per ounce and all-in costs per ounce. Classifying capital expenditures is intended to provide additional information only and does not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently. The following table reconciles these non-GAAP financial performance measures to the most directly comparable IFRS measure.
Reconciliation of the Classification of Capital Expenditures
For the three months ended | For the years ended | |||||
($ millions) | ||||||
Minesite sustaining capital expenditures | 557 | 571 | 2,071 | 1,673 | 1,559 | |
Project capital expenditures | 324 | 213 | 949 | 747 | 471 | |
Capitalized interest | 10 | 8 | 29 | 15 | 24 | |
Total consolidated capital expenditures | 891 | 792 | 3,049 | 2,435 | 2,054 |
Endnote 7
Attributable capital expenditures are presented on the same basis as guidance, which includes our 61.5% share of NGM, our 60% share of Pueblo Viejo, our 80% share of Loulo-Gounkoto, our 89.7% share of Tongon, our 84% share of North Mara and Bulyanhulu and our 50% share of Zaldívar and
Endnote 8
Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using Barrick’s ownership share).
Endnote 9
“Total cash costs” per ounce, “All-in sustaining costs” per ounce and “All-in costs” per ounce are non-GAAP financial performance measures which are calculated based on the definition published by the
Reconciliation of Gold Cost of Sales to Total cash costs, All-in sustaining costs and All-in costs, including on a per ounce basis
For the three months ended | For the years ended | |||||||||||
($ millions, except per ounce information in dollars) | Footnote | |||||||||||
Cost of sales applicable to gold production | 1,890 | 1,638 | 6,813 | 6,504 | 6,832 | |||||||
Depreciation | (506 | ) | (393 | ) | (1,756 | ) | (1,889 | ) | (1,975 | ) | ||
Cash cost of sales applicable to equity method investments | 56 | 61 | 222 | 217 | 222 | |||||||
By-product credits | (69 | ) | (50 | ) | (225 | ) | (285 | ) | (228 | ) | ||
Non-recurring items | a | (23 | ) | 0 | (23 | ) | 0 | 1 | ||||
Other | b | 7 | (7 | ) | (23 | ) | (48 | ) | (129 | ) | ||
Non-controlling interests | c | (393 | ) | (360 | ) | (1,442 | ) | (1,261 | ) | (1,312 | ) | |
Total cash costs | 962 | 889 | 3,566 | 3,238 | 3,411 | |||||||
General & administrative costs | 49 | 26 | 159 | 151 | 185 | |||||||
Minesite exploration and evaluation costs | d | 23 | 22 | 75 | 64 | 79 | ||||||
Minesite sustaining capital expenditures | e | 557 | 571 | 2,071 | 1,673 | 1,559 | ||||||
Sustaining leases | 11 | 12 | 38 | 41 | 31 | |||||||
Rehabilitation - accretion and amortization (operating sites) | f | 14 | 12 | 50 | 50 | 46 | ||||||
Non-controlling interest, copper operations and other | g | (239 | ) | (264 | ) | (900 | ) | (636 | ) | (594 | ) | |
All-in sustaining costs | 1,377 | 1,268 | 5,059 | 4,581 | 4,717 | |||||||
Global exploration and evaluation and project expense | d | 83 | 55 | 275 | 223 | 216 | ||||||
Community relations costs not related to current operations | 0 | 0 | 0 | 0 | 1 | |||||||
Project capital expenditures | e | 324 | 213 | 949 | 747 | 471 | ||||||
Non-sustaining leases | 0 | 0 | 0 | 0 | 4 | |||||||
Rehabilitation - accretion and amortization (non-operating sites) | f | 6 | 5 | 19 | 13 | 10 | ||||||
Non-controlling interest and copper operations and other | g | (130 | ) | (71 | ) | (327 | ) | (240 | ) | (157 | ) | |
All-in costs | 1,660 | 1,470 | 5,975 | 5,324 | 5,262 | |||||||
Ounces sold - equity basis (000s ounces) | h | 1,111 | 997 | 4,141 | 4,468 | 4,879 | ||||||
Cost of sales per ounce | i,j | 1,324 | 1,226 | 1,241 | 1,093 | 1,056 | ||||||
Total cash costs per ounce | j | 868 | 891 | 862 | 725 | 699 | ||||||
Total cash costs per ounce (on a co-product basis) | j,k | 908 | 925 | 897 | 765 | 727 | ||||||
All-in sustaining costs per ounce | j | 1,242 | 1,269 | 1,222 | 1,026 | 967 | ||||||
All-in sustaining costs per ounce (on a co-product basis) | j,k | 1,282 | 1,303 | 1,257 | 1,066 | 995 | ||||||
All-in costs per ounce | j | 1,496 | 1,474 | 1,443 | 1,192 | 1,079 | ||||||
All-in costs per ounce (on a co-product basis) | j,k | 1,536 | 1,508 | 1,478 | 1,232 | 1,107 |
a. | Non-recurring items | |
These costs are not indicative of our cost of production and have been excluded from the calculation of total cash costs. Non-recurring items for the three months ended and year ended | ||
b, | Other | |
Other adjustments for the three months and year ended | ||
c. | Non-controlling interests | |
Non-controlling interests include non-controlling interests related to gold production of $560 million and | ||
d. | Exploration and evaluation costs | |
Exploration, evaluation and project expenses are presented as minesite if it supports current mine operations and project if it relates to future projects. Refer to page 61 of this MD&A. | ||
e. | Capital expenditures | |
Capital expenditures are related to our gold sites only and are split between minesite sustaining and project capital expenditures. Project capital expenditures are capital spending at new projects and major, discrete projects at existing operations intended to increase net present value through higher production or longer mine life. Significant projects in the current year are the expansion project at Pueblo Viejo, construction of the Third Shaft at | ||
f. | Rehabilitation - accretion and amortization | |
Includes depreciation on the assets related to rehabilitation provisions of our gold operations and accretion on the rehabilitation provisions of our gold operations, split between operating and non-operating sites. | ||
g. | Non-controlling interest and copper operations | |
Removes general & administrative costs related to non-controlling interests and copper based on a percentage allocation of revenue. Also removes exploration, evaluation and project expenses, rehabilitation costs and capital expenditures incurred by our copper sites and the non-controlling interests of NGM (including South Arturo), Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara, Bulyanhulu and Buzwagi (up until the third quarter of 2021) operating segments. It also includes capital expenditures applicable to our equity method investment in Kibali. Figures remove the impact of Pierina, Golden Sunlight, Morila up until its divestiture in |
($ millions) | For the three months ended | For the years ended | ||||||||
Non-controlling interest, copper operations and other | ||||||||||
General & administrative costs | (8 | ) | (5 | ) | (31 | ) | (21 | ) | (25 | ) |
Minesite exploration and evaluation costs | (8 | ) | (9 | ) | (27 | ) | (19 | ) | (25 | ) |
Rehabilitation - accretion and amortization (operating sites) | (6 | ) | (3 | ) | (16 | ) | (14 | ) | (14 | ) |
Minesite sustaining capital expenditures | (217 | ) | (247 | ) | (826 | ) | (582 | ) | (530 | ) |
All-in sustaining costs total | (239 | ) | (264 | ) | (900 | ) | (636 | ) | (594 | ) |
Global exploration and evaluation and project costs | (8 | ) | (9 | ) | (32 | ) | (19 | ) | (25 | ) |
Project capital expenditures | (122 | ) | (62 | ) | (295 | ) | (221 | ) | (132 | ) |
All-in costs total | (130 | ) | (71 | ) | (327 | ) | (240 | ) | (157 | ) |
h. | Ounces sold - equity basis | |
Figures remove the impact of Pierina, Golden Sunlight, Morila up until its divestiture in | ||
i. | Cost of sales per ounce | |
Figures remove the cost of sales impact of Pierina of | ||
j. | Per ounce figures | |
Cost of sales per ounce, cash costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce may not calculate based on amounts presented in this table due to rounding. | ||
k. | Co-product costs per ounce | |
Cash costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce presented on a co-product basis remove 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 years ended | ||||||||
By-product credits | 69 | 50 | 225 | 285 | 228 | |||||
Non-controlling interest | (25 | ) | (16 | ) | (78 | ) | (108 | ) | (92 | ) |
By-product credits (net of non-controlling interest) | 44 | 34 | 147 | 177 | 136 |
Endnote 10
Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick’s ownership share).
Endnote 11
“C1 cash costs” per pound and “All-in sustaining costs” per pound are non-GAAP financial performance measures related to our copper mine operations. We believe that “C1 cash costs” per pound enables investors to better understand the performance of our copper operations in comparison to other copper producers who present results on a similar basis. “C1 cash costs” per pound excludes royalties and production taxes and non-routine charges as they are not direct production costs. “All-in sustaining costs” per pound is similar to the gold all-in sustaining costs metric and management uses this to better evaluate the costs of copper production. We believe this measure enables investors to better understand the operating performance of our copper mines as this measure reflects all of the sustaining expenditures incurred in order to produce copper. “All-in sustaining costs” per pound includes C1 cash costs, sustaining capital expenditures, sustaining leases, general and administrative costs, minesite exploration and evaluation costs, royalties and production taxes, reclamation cost accretion and amortization and writedowns taken on inventory to net realizable value. Further details on these non-GAAP financial performance measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Copper Cost of Sales to C1 cash costs and All-in sustaining costs, including on a per pound basis
For the three months ended | For the years ended | ||||||||||
($ millions, except per pound information in dollars) | |||||||||||
Cost of sales | 197 | 172 | 666 | 569 | 556 | ||||||
Depreciation/amortization | (92 | ) | (59 | ) | (223 | ) | (197 | ) | (208 | ) | |
Treatment and refinement charges | 47 | 54 | 199 | 161 | 157 | ||||||
Cash cost of sales applicable to equity method investments | 90 | 81 | 317 | 313 | 267 | ||||||
Less: royalties | (16 | ) | (23 | ) | (103 | ) | (103 | ) | (54 | ) | |
By-product credits | (3 | ) | (2 | ) | (14 | ) | (15 | ) | (15 | ) | |
C1 cash cost of sales | 223 | 223 | 842 | 728 | 703 | ||||||
General & administrative costs | 8 | 4 | 30 | 17 | 18 | ||||||
Rehabilitation - accretion and amortization | 2 | 0 | 4 | 6 | 8 | ||||||
Royalties | 16 | 23 | 103 | 103 | 54 | ||||||
Minesite exploration and evaluation costs | 6 | 8 | 22 | 14 | 5 | ||||||
Minesite sustaining capital expenditures | 139 | 115 | 410 | 234 | 223 | ||||||
Sustaining leases | 2 | 1 | 6 | 9 | 9 | ||||||
All-in sustaining costs | 396 | 374 | 1,417 | 1,111 | 1,020 | ||||||
Pounds sold - consolidated basis (millions pounds) | 99 | 120 | 445 | 423 | 457 | ||||||
Cost of sales per pounda,b | 3.19 | 2.30 | 2.43 | 2.32 | 2.02 | ||||||
C1 cash costs per pounda | 2.25 | 1.86 | 1.89 | 1.72 | 1.54 | ||||||
All-in sustaining costs per pounda | 3.98 | 3.13 | 3.18 | 2.62 | 2.23 |
- Cost of sales per pound, C1 cash costs per pound and all-in sustaining costs per pound may not calculate based on amounts presented in this table due to rounding.
- Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick’s ownership share).
Endnote 12
A Tier One Gold Asset is an asset with a reserve potential to deliver a minimum 10-year life, annual production of at least 500,000 ounces of gold and total cash costs per ounce over the mine life that are in the lower half of the industry cost curve. A Tier One Copper Asset is an asset with a reserve potential of greater than 5 million tonnes of contained copper and C1 cash costs per pound in the lower half of the industry cost curve.
Endnote 13
A Technical Report to support the Pueblo Viejo mine life extension and process plant expansion project, including the pre-feasibility study for the new Naranjo tailings storage facility, will be prepared in accordance with Form 43-101F1 and filed on SEDAR within 45 days of Barrick’s press release dated as of
Endnote 14
Class 1 - High Significance is defined as an incident that causes significant negative impacts on human health or the environment or an incident that extends onto publicly accessible land and has the potential to cause significant adverse impact to surrounding communities, livestock or wildlife.
Endnote 15
On a 100% basis.
Endnote 16
Commodity | Proven and Probable Reserve Price Assumptions | Measured, Indicated and Inferred Resource Price Assumptions | ||
2021 | 2022 | 2021 | 2022 | |
Gold | ||||
Copperi | ||||
Silver |
i Except at Zaldívar, where mineral reserves and resources are based on Antofagasta’s price assumptions. For mineral reserves, the copper price assumption used by Antofagasta was
Endnote 17
Estimated in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects as required by Canadian securities regulatory authorities. Estimates are as of
Endnote 18
Estimated in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects as required by Canadian securities regulatory authorities. Estimates are as of
Endnote 19
Gold equivalent ounces calculated from our copper assets are calculated using a gold price of
Barrick’s ten-year indicative production profile for gold equivalent ounces is based on the following assumptions:
Key Outlook Assumptions | 2023 | 2024 | 2025+ |
Gold Price ($/oz) | 1,650 | 1,300 | 1,300 |
Copper Price ($/lb) | 3.50 | 3.00 | 3.00 |
Oil Price (WTI) ($/barrel) | 90 | 70 | 70 |
AUD Exchange Rate (AUD:USD) | 0.75 | 0.75 | 0.75 |
ARS Exchange Rate (USD:ARS) | 170 | 170 | 170 |
CAD Exchange Rate (USD:CAD) | 1.30 | 1.30 | 1.30 |
CLP Exchange Rate (USD:CLP) | 900 | 900 | 900 |
EUR Exchange Rate (EUR:USD) | 1.20 | 1.20 | 1.20 |
Barrick’s five-year indicative outlook is based on our current operating asset portfolio, sustaining projects in progress and exploration/mineral resource management initiatives in execution. This outlook is based on our current reserves and resources as disclosed in this press release and assumes that we will continue to be able to convert resources into reserves. Additional asset optimization, further exploration growth, new project initiatives and divestitures are not included. For the group gold and copper segments, and where applicable for a specific region, this indicative outlook is subject to change and assumes the following: new open pit production permitted and commencing at
Our five-year indicative outlook excludes: production from Fourmile, Pierina, and Golden Sunlight, which are currently in care and maintenance, and production from long-term greenfield optionality from Donlin, Pascua-Lama, Norte Abierto and Alturas.
Barrick’s ten-year indicative production profile is subject to change and is based on the same assumptions as the current five-year outlook detailed above, except that the subsequent five years of the ten-year outlook assumes attributable production from Fourmile as well as exploration and mineral resource management projects in execution at Nevada Gold Mines and
Barrick’s five-year and ten-year production profile in this press release also assumes the re-start of Porgera, as well as an indicative gold and copper production profile for Reko Diq and an indicative copper production profile for the
Endnote 20
Gold equivalent ounces calculated from our copper assets are calculated using a gold price of
Endnote 21
Included within our 61.5% interest in
Endnote 22
Includes Goldrush.
Endnote 23
Porgera was placed on temporary care and maintenance on
Endnote 24
Total cash costs and all-in sustaining costs per ounce include costs allocated to non-operating sites.
Endnote 25
Operating division guidance ranges reflect expectations at each individual operating division, and may not add up to the company-wide guidance range total. Guidance ranges exclude Pierina which is producing incidental ounces while in closure.
Endnote 26
Includes corporate administration costs.
Endnote 27
EBITDA is a non-GAAP financial performance measure, which excludes the following from net earnings: income tax expense; finance costs; finance income; and depreciation. Management believes that EBITDA is a valuable indicator of our ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures. Management uses EBITDA for this purpose. Adjusted EBITDA removes the effect of impairment charges; acquisition/disposition gains/losses; foreign currency translation gains/losses; and other expense adjustments. We also remove the impact of the income tax expense, finance costs, finance income and depreciation incurred in our equity method accounted investments. We believe these items provide a greater level of consistency with the adjusting items included in our adjusted net earnings reconciliation, with the exception that these amounts are adjusted to remove any impact on finance costs/income, income tax expense and/or depreciation as they do not affect EBITDA. We believe this additional information will assist analysts, investors and other stakeholders of Barrick in better understanding our ability to generate liquidity from our full business, including equity method investments, by excluding these amounts from the calculation as they are not indicative of the performance of our core mining business and not necessarily reflective of the underlying operating results for the periods presented. EBITDA and adjusted EBITDA are intended to provide additional information only and do not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate EBITDA and adjusted EBITDA differently. Further details on these non-GAAP financial performance measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to EBITDA and Adjusted EBITDA
For the three months ended | For the years ended | ||||||||||
($ millions) | |||||||||||
Net (loss) earnings | (816 | ) | 410 | 1,017 | 3,288 | 3,614 | |||||
Income tax expense | (131 | ) | 215 | 664 | 1,344 | 1,332 | |||||
Finance costs, neta | 31 | 55 | 235 | 307 | 306 | ||||||
Depreciation | 604 | 457 | 1,997 | 2,102 | 2,208 | ||||||
EBITDA | (312 | ) | 1,137 | 3,913 | 7,041 | 7,460 | |||||
Impairment charges (reversals) of long-lived assetsb | 1,642 | 24 | 1,671 | (63 | ) | (269 | ) | ||||
Acquisition/disposition gainsc | (319 | ) | (64 | ) | (405 | ) | (213 | ) | (180 | ) | |
Loss on currency translation | 4 | 3 | 16 | 29 | 50 | ||||||
Other expense (income) adjustmentsd | 126 | (27 | ) | 17 | 73 | 71 | |||||
Income tax expense, net finance costsa, and depreciation from equity investees | 145 | 82 | 401 | 391 | 360 | ||||||
Adjusted EBITDA | 1,286 | 1,155 | 5,613 | 7,258 | 7,492 |
- Finance costs exclude accretion.
- Net impairment charges for the three month period and year ended
December 31, 2022 primarily relate to a goodwill impairment at Loulo-Gounkoto, and non-current asset impairments at Veladero andLong Canyon , partially offset by an impairment reversal at Reko Diq. Net impairment charges for the prior year mainly relate to non-current asset reversals at Lagunas Norte. - Acquisition/disposition gains for the three month period and year ended
December 31, 2022 primarily relate to a gain as Barrick’s interest in the Reko Diq project increased from 37.5% to 50%. The year endedDecember 31, 2022 was further impacted by the sale of a portfolio of royalties to Maverix Metals Inc. and the sale of a portfolio of royalties by NGM to Gold Royalty Corp. Acquisition/disposition gains for the prior year primarily relate to the gain on the sale ofLone Tree . - Other expense adjustments for the three month period and year ended
December 31, 2022 mainly relate to a net realizable value impairment of leach pad inventory at Veladero, care and maintenance expenses at Porgera and supplies obsolescence write-off at Bulyanhulu and North Mara. The prior year was impacted by care and maintenance expenses at Porgera and a$25 million litigation settlement.
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or
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Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “expect”, “strategy”, “target”, “plan”, “on track”, “scheduled”, “committed” “opportunities”, “guidance”, “project”, “continue”, “anticipated”, “estimate”, “potential”, “proposed”, “future”, “during”, “ongoing”, “planned”, “will”, “could”, “would”, “should”, “may” 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, including our five- and ten-year production outlooks for gold and copper; estimates of future cost of sales per ounce for gold and per pound for copper, total cash costs per ounce and C1 cash costs per pound, and all-in-sustaining costs per ounce/pound; projected capital, operating and exploration expenditures; our ability to convert resources into reserves and replace reserves net of depletion from production; mine life and production rates; Barrick’s global exploration strategy and planned exploration activities, including growth potential in
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper or certain other commodities (such as silver, diesel fuel, natural gas and electricity); risks associated with projects in the early stages of evaluation and for which additional engineering and other analysis is required; risks related to the possibility that future exploration results will not be consistent with the Company’s expectations, that quantities or grades of reserves will be diminished, and that resources may not be converted to reserves; risks associated with the fact that certain of the initiatives described in this press release are still in the early stages and may not materialize; changes in mineral production performance, exploitation and exploration successes; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; the speculative nature of mineral exploration and development; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices; the potential impact of proposed changes to Chilean law on the status of value added tax refunds received in
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
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