Barrick’s Q3 results showed improved production at lower costs and confirmed its long term growth forecast. President and chief executive Mark Bristow said the Q3 performance was an improvement on the previous quarter’s and Q4 is expected to be better. Despite the projected second half improvement, gold production is forecast to be marginally below the low end of our annual guidance range. Copper is comfortably on track to meet its guidance for production and costs.

Gold production in Q3 was higher than Q2 driven by improved performances at Cortez, Turquoise Ridge and Kibali. As previously disclosed, the ramp up at Pueblo Viejo is slower than planned. Barrick is engaged with original equipment suppliers to develop permanent solutions for their equipment failures. The 2024 Pueblo Viejo production forecast still exceeds 800,000 ounces (100% basis). The company also confirmed that the Notice of Availability for the Final Environmental Impact Statement for Goldrush was published on October 27.

“Mining is a long game and we don’t manage Barrick by the quarter – our projection for a 30% increase in the production of gold-equivalent ounces by the end of this decade remains intact,” Bristow said.

Barrick’s other key growth projects – the development of the Reko Diq copper and gold mine in Pakistan, and the expansion of the Lumwana copper mine in Zambia – are making steady progress. Construction of Reko Diq is scheduled to start in 2025 targeting first production in 2028, and Lumwana’s expansion is scheduled on the same timetable. Reko Diq will rank among the world’s top 10 copper producers when it reaches full production, while the expanded Lumwana mine is forecast to produce at an annual production rate of 240,000 tonnes of contained copper.

“Growing the copper portfolio is one of our strategic priorities, and when these two mines are in full production, they will promote Barrick to the premier league of copper producers alongside its peerless gold portfolio. In the meantime, we’re using our very successful Jabal Sayid copper mine in Saudi Arabia as a springboard for the discovery of new opportunities within the Kingdom and around the Red Sea to Egypt, where we believe the Arabian-Nubian Shield is poised to become a major new mining destination,” Bristow said.

Barrick has aggressive exploration across its global portfolio, aiming both to sustain the company’s peerless record of reserves replacement, and to find its next million-ounce discovery. Since the merger with Randgold Resources in 2019, Barrick has replaced 125% of its depleted reserves (exclusive of divestments and acquisitions on a gold equivalent basis).

Strong drill results at Nevada Gold Mines support its three-year resource and replacement plan and, brownfields exploration is highlighting the potential in the Africa and Middle East region, and the exploration portfolios of South, Central and North America are being expanded.

Bristow described Barrick’s financial performance for the quarter as strong, noting that operating cash flows grew by 35% to more than US$1 billion, free cash flow3 was up significantly to US$359 million, net earnings per share increased 24% to US$0.21 per share and adjusted net earnings per share6 rose 26% to US$0.24 per share. The quarterly dividend was maintained at 10 cents per share.

“Our robust balance sheet secures Barrick’s capacity to continue to invest in growth projects, both new and existing. These projects are not required to maintain our existing production profile; they’re exceptional opportunities to drive real long-term value creation, and our team has shown that they’re more than capable of fully delivering on them,” Bristow said.

Egypt approved a zero-customs policy for participants of the Nebu Expo for Gold and Jewelry, scheduled for the end of November.

Head of the Gold Division at the Cairo Chamber of Commerce, Hani Milad, announced that the Egyptian Customs Authority agreed with the Assay and Weights Authority to exempt international participants from gold customs and taxes, allowing them to bring their products in their luggage.

The third edition of Nebu will be held between Nov. 25 and 27 amid a rise in the price of gold.

Milad explained that exhibitors in the past two editions had to agree with a shipping company and pay customs and tax duties, which affected the percentage of participants.

However, he expects the number of international participants to double with the new facilities introduced, as long as the incoming shipments will be re-exported with the exhibitors.

Authorities aim to transform Egypt into an international and regional center for gold and jewelry.

There are 13 steps in the new plan, beginning with the Gold Division notifying the Assay and Weights Authority with a list of names and data of the international exhibitors scheduled to participate in the expo.

It will also include a detailed statement of the types and specifications of the artifacts accompanying the exhibitor.

The document stated that the Assay and Weights Authority would inspect the jewelry and coordinate between customs, exhibitors, and organizers.

Egypt International Exhibitions Center Customs will deliver to the exhibitor a temporary release permit and a secured safe containing the artifacts imported with them. Before departure, they must provide the safe to the authorities for examination and verification.

Head of Assay and Weights Authority Ahmed Soliman approved the new procedures during a meeting with representatives from the Egyptian Customs Authority and the Gold Division.

Gold Division spokesman Wael Shahboun stated that these measures would double the number of international exhibitors at the expo, which supports Egypt’s efforts to transform into a global and regional hub for gold and jewelry.

Shahboun pointed out that most of the exhibitors in the upcoming Nebu exhibition are from Türkiye and Italy.

He said that the government is expected to extend the customs and tax-free period for gold imports for another six months.

The Gold Division had submitted a request to the cabinet to exempt gold imports carried by passengers from customs and taxes for another six months.

Shahboun explained that there are indications that the government would agree to the extensions, backed by Minister of Trade and Supply Ali el-Moselhi and the shortage of raw gold and dollars in the country.

Caledonia Mining is exploring options to raise US$250 million to develop its Bilboes project into what could be Zimbabwe’s biggest gold mine.

The company, which also owns the Blanket gold mine in Zimbabwe, could raise the money via a combination of debt, its own cash reserves and equity, said Maurice Mason, Caledonia’s vice-president, corporate development.

The Bilboes project could potentially produce about 170,000oz ounces of gold annually, boosting Caledonia’s total bullion output to about 250,000oz, Mason said.

Caledonia, backed by investors including Cape Town-based fund manager Allan Gray, is one of a number of mining investors searching for new opportunities in Zimbabwe, even as the economy buckles from challenges such as intermittent power cuts, scarcity of US dollars and hyperinflation.

Caledonia, which plans to construct the Bilboes mine over two years, is doing studies to find solutions to reduce the upfront capital required, Mason said.

“It will be Zimbabwe’s biggest gold mine by far,” Mason said via email. “We are considering phased capital raising, but that will depend on the outcome of the review of the feasibility study.”

While investors were cautious to commit to big mining projects, “our experience has been for quality projects with good returns and  investors have been supportive”, he said.

Zimbabwe has been struggling to attract big investors from early 2000 when its economy imploded after the government’s seizure of white-owned commercial farms for distribution to blacks.

The scarcity of dollars means some investors often struggle or fail to remit profits.

While Caledonia has been able to pay dividends from its Blanket mine, Mason said in general terms some international investors remain concerned about repatriating profits from investments in Zimbabwe as well as about the country’s policy stability.

“Foreign investors need to know they can repatriate the fruits of their investment,” Mason said.

Gold is among Zimbabwe’s top foreign currency earning commodities with tobacco and platinum metals mined by units of Impala Platinum and Anglo American Platinum.

Caledonia, which has long sought to expand gold output in Zimbabwe, acquired the Bilboes project in 2022. It’s also searching for more gold deposits at Motapa and Maligreen projects.

State-owned Epangelo Mining Company (Pty) Ltd. has announced promising mineral resource estimate (MRE) of 1,3 million ounces of gold at its Kokoseb project.

The project, to the north of Okombahe town, is a joint venture between Epangelo and Damaran Exploration, a wholly owned subsidiary of WIA Gold Limited.

According to the latest Chamber of Mines of Namibia newsletter, the MRE at Kokoseb is 1,3 Moz at 1,0 g/t gold, at a cut-off grade of 0,5 g/t within a US$1,800/ounce pit shell.

“The MRE has demonstrated very good continuity in grade and width along the mineralised sections from surface,” said the chamber.

The newsletter added that preliminary metallurgical test results returned excellent gold recoveries above 91% via a gravity and standard direct leach process, confirming the development potential for Kokoseb.

Kokoseb was first identified in May 2021, by a regional 500 by 500m soil-sampling programme that was completed over the licence.

A trenching programme, which commenced in September 2021, confirmed the mineralisation at Kokoseb, which was followed up by a small-scale diamond-drilling programme that was completed in early 2022.

“An RC drilling programme commenced at the end of the June quarter 2022, and has formed the basis of the MRE,” said the chamber of mines.

The dataset for the MRE, as of 10 May 2023, includes results from 12 diamond holes and 90 RC holes, totalling 19,496m of drilling, along with data from 10 trenches for 1,058m.

Several higher-grade plunging shoots have already been identified beneath the present pit outlines and these are currently being followed up to see if they can be added to the current resource estimate.

Geologically, Kokoseb lies within the northern central zone of the Pan-African Damaran orogenic belt around 15 kilometre south of the Otjihorongo thrust.

Metasediments of the Arandis, Karibib and Kuiseb Formations of the Swakop Group underlie the project area.

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.

AngloGold Ashanti shares fell more than 8% on Tuesday after the miner said its half-year profit would fall by as much as 58%, mainly due to higher costs and mandatory environmental provisions in Brazil.

The miner’s shares fell to their lowest level since March 16.

AngloGold expects its headline earnings per share (HEPS) – the main profit measure for South African firms – to be between US$0.30 and US$0.37 in the six months to June 30, compared to US$0.71 a year ago.

AngloGold said earnings were hit by higher environmental provisions of US$38 million net of tax following the implementation of new legislation in Brazil relating to the management of mineral waste storage facilities.

Inflation had also driven up operating costs by US$111 million, the miner said. Mineral exploration and evaluation costs had also increased.

Gold production was marginally higher at 1.236 million ounces during the half-year, compared to 1.233 million ounces during the same period last year.

In May, AngloGold, whose forerunner was founded by industrialist Ernest Oppenheimer a century ago, announced plans to shift its primary listing from Johannesburg to New York.

The company, which completed the sale of its South African mines in 2020, will also shift its corporate headquarters to London.

AngloGold will publish its half-year results on Aug. 4.