Barrick Gold Corporation is on target to meet its gold and copper production guidance for 2023 and continues to advance major projects which will drive value delivery in the long term through organic growth, president and chief executive Mark Bristow said.
Commenting on the company’s Q2 results, Bristow said improved performances from the Carlin complex in Nevada, the Kibali gold mine in the Democratic Republic of Congo and the Lumwana copper mine in Zambia have laid a sound foundation for production in the second half of the year which, as guided, is expected to surpass the first. Key drivers of the higher anticipated H2 results are the Q2 completion of major maintenance projects at Nevada Gold Mines (“NGM”) and the commissioning of the plant expansion at the Pueblo Viejo gold mine in the Dominican Republic.
Compared to Q1, gold production in Q2 was up 6% at just over 1 million ounces while copper production increased by 22% to 107 million pounds. Operating cash flow rose by 7% to $832 million, net earnings increased by 143% to 17 cents per share, and adjusted net earnings increased by 36% to 19 cents per share. The quarterly dividend was maintained at 10 cents. Year-on-year, the total recordable injury frequency rate (“TRIFR”) was reduced by 8% and greenhouse gas emissions were reduced by 12%.
The massive Pueblo Viejo expansion project is making significant progress with the process plant currently ramping up to full capacity. The plant expansion and associated new tailings storage facility will extend the Tier One mine’s life to beyond 2040 and is designed to sustain gold production above 800,000 ounces pear year (100% basis) going forward. In Papua New Guinea, the resolution of the tax dispute has allowed us to work toward the re-opening of the Porgera gold mine by the end of the year, with a potential Tier One production profile, while the prefeasibility study on a Super Pit at Lumwana is driving its transformation into another Tier One asset, capable of producing into the 2060s.
In Pakistan, Barrick continues to make solid progress on the Reko Diq project. Reko Diq is targeting first production in 2028, at the same time that the Lumwana expansion is expected to be completed. Together, these projects will elevate Barrick into the premier league of copper producers, in line with its strategy of significantly expanding its copper portfolio.
Exploration, traditionally Barrick’s key growth driver, is advancing significant resource and reserve growth opportunities at Carlin, Cortez and Turquoise Ridge in Nevada, Veladero in Argentina and Loulo, Kibali and Lumwana in Africa. Barrick is also continuing to expand its global exploration footprint and has consolidated new prospective ground holdings in the USA, Canada, the Dominican Republic, Peru, Chile, Tanzania and Côte d’Ivoire.
“Our asset base is the best in the business and it gives us a platform from which we can clearly see and plan for the future, managing the challenges and maximizing the opportunities. At the halfway mark of this year, we’ve again advanced significantly towards our goal of building the world’s most valued gold and copper mining company, and we have the strategy, the means and the motivation to achieve that,” Bristow said.
