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Q3 Operating Result Sets Barrick Up for Strong Finish to 2021

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Q3 Operating Result Sets Barrick Up for Strong Finish to 2021

 

 

 

 

 

Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) — Strong third quarter production from its Africa and Middle East and Latin America regions has positioned them to meet the top end of their guidance for the year. At the same time, Nevada Gold Mines posted a quarter-on-quarter improvement and, with its Carlin mill operations now restored, is set to end 2021 with an enhanced quarter, positioning Barrick for a strong finish to the year.

 

The company’s Q3 results, published today, report attributable gold production for the quarter of 1.09 million ounces and 3.23 million ounces for the year to date. Attributable copper production for the quarter was 100 million pounds and 289 million pounds for the year to date. Net earnings per share were 20 cents and adjusted net earnings per share1 were 24 cents.

 

Presenting the results, president and chief executive Mark Bristow said the operating cash flow of $1,050 million and the free cash flow2 of $481 million for Q3 would further support an already strong balance sheet and the funding of Barrick’s capital allocation priorities. He noted that the sustainable quarterly dividend of 9 cents per share and the payment of the final $250 million3 tranche of the $750 million return of capital distribution would combine to lift the total cash return to shareholders to a record level of approximately $1.4 billion during 2021.

 

“More than two years after the merger, we are getting to where we want to be, with the industry’s best asset base in the form of six Tier One13 gold mines and a well-balanced portfolio of high-quality growth opportunities. In Nevada, the publication of an official Notice of Intent marks another advance in the development of the world-class Goldrush project, where the successful processing of the first bulk samples points to an additional reserve conversion by the end of the year,” he said.

 

“In Argentina, the commissioning of the new heap leach facility at Veladero, defined as an at-risk asset at the time of the merger, has put the mine back on track to get back to its past performance as it ramps up production. In Tanzania, we have completely revived the moribund Bulyanhulu mine and it too is now back in business and ramping up production. In Alaska, the 2021 drilling program has been completed at Donlin, one of the largest undeveloped gold deposits in the world, and we’re now updating our models and preparing for an early start to the next phase.”

 

The Pueblo Viejo expansion project in the Dominican Republic is at the permitting stage for the new tailings storage facility. The project is expected to extend the Tier One mine’s life to beyond 2040 and has the potential to convert approximately 9 million ounces of measured and indicated resources to proven and probable reserves.14

 

Bristow said results from successful brownfields exploration, particularly in North America and Africa, indicated that the group is on track to replace its gold reserves net of depletion in 2021. The drive to expand its portfolio and extend its global footprint has added new exploration projects in five countries.

 

Barrick has also been advancing its greenhouse gas (GHG) reduction strategy with NGM starting construction of its solar power plant with initial capacity of 100MW and the permit received to double this to 200MW, and Veladero completing construction of its cross-border link-up with the Chilean national power grid — a global leader in renewable energy.

 

“Barrick is driven by value creation and by any measure we’ve been successful so far. But ours is a long-term vision which looks far beyond our major operations’ current 10-year business plans and our ceaseless pursuit of new opportunities is continuing to deliver exciting future prospects,” Bristow said.

 

Key Performance Indicators

 

Financial and Operating Highlights

 

Financial Results Q3 2021 Q2 2021 Q3 2020
Realized gold price5
($ per ounce)
1,771    1,820     1,926  
Net earnings
($ millions)
347   411     882  
Adjusted net earnings1
($ millions)
419    513     726  
Net cash provided by operating activities ($ millions) 1,050   639     1,859  
Free cash flow2
($ millions)
481   (19 )   1,311  
Net earnings per share
($)
0.20   0.23     0.50  
Adjusted net earnings
per share1 ($)
0.24   0.29     0.41  
Attributable capital expenditures6 ($ millions) 456   518     436  
Operating Results Q3 2021 Q2 2021 Q3 2020
Gold      
Production7
(000s of ounces)
1,092   1,041     1,155  
Cost of sales (Barrick’s share)8
($ per ounce)
1,122   1,107     1,065  
Total cash costs9
($ per ounce)
739   729     696  
All-in sustaining costs9
($ per ounce)
1,034   1,087     966  
Copper      
Production7
(millions of pounds)
100   96     103  
Cost of sales (Barrick’s share)8
($ per pound)
2.57   2.43     1.97  
C1 cash costs10
($ per pound)
1.85   1.83     1.45  
All-in sustaining costs10
($ per pound)
2.60   2.74     2.31  

 

  • Quarter-on-quarter improvement positions Barrick to deliver on annual production guidance
  • Strong production from the AME and Latin America regions places both regions at top end of annual guidance range
  • Nevada shows strong quarter on quarter performance on the back of improved run time at all major processing facilities
  • Carlin mill operations restored at end of the quarter setting up for strong Q4
  • Copper assets deliver incremental production and bolster earnings for Barrick
  • Goldrush Notice of Intent published, successful processing of first bulk sample supports additional reserve conversion at year end
  • Balance sheet strength supported by operating cash flow of $1,050 million
  • Net earnings per share of 20 cents; adjusted net earnings per share1 of 24 cents
  • Porgera makes progress towards reopening
  • South Arturo / Lone Tree asset swap streamlines NGM portfolio and adds value
  • 22% year-on-year decrease in the year-to-date TRIFR11 highlights increased focus on safety
  • Year-to-date water efficiency (reuse and recycling) of 83%
  • Greenhouse gas reduction roadmap advances as NGM gets approval to double solar capacity to 200MW
  • Veladero completes construction of powerline from Chile
  • Strong project development and brownfields results from North America and AME point to reserve replacement net of depletion for the group
  • Drive to expand portfolio adds exploration projects in five countries
  • Donlin board approves additional funding to advance studies and plan for a winter drilling program
  • Barrick declares $0.09 quarterly dividend per share in addition to payment of third $250 million12 capital return tranche (~14 cents per share4)

 

Third $250 Million Return of Capital Tranche and Quarterly Dividend

 

Barrick announced that the third $250 million3 tranche (approximately $0.14 per share4) of the return of capital distribution totalling $750 million will be paid on December 15, 2021 to shareholders of record at the close of business on November 30, 2021.

 

This will complement the $0.09 per share dividend declared by the Barrick Board of Directors for the third quarter, which will also be paid on December 15, 2021 to shareholders of record at the close of business on November 30, 2021.12

 

This follows the approval by shareholders at Barrick’s Annual and Special Meeting on May 4, 2021 of the total $750 million return of capital distribution. The first $250 million tranche was paid on June 15, 2021 and the second $250 million tranche was paid on September 15, 2021.

“We are pleased that the combination of our quarterly dividend and the $750 million return of capital distribution have provided our shareholders with a record level of cash returns totalling approximately $1.4 billion during 2021 whilst our strong operational and financial performance during the year has allowed us to continue to invest in our business and has set us up well to continue to provide meaningful returns to shareholders going forward,” said senior executive vice-president and chief financial officer Graham Shuttleworth.

 

New Model Shows 20-Year Life Potential for Bulyanhulu

 

How Barrick transformed a derelict mine into a world-class asset

 

Two years ago, the Bulyanhulu gold mine in Tanzania was on care and maintenance, with only its small tailings reprocessing operation still limping along: a burden to its shareholders and the state.

 

Then Barrick took over, rebuilt and reopened Bulyanhulu, now transformed beyond recognition into one that, along with sister mine North Mara, has the potential to produce more than 500,000 ounces of gold per year14 and, according to the latest geological model, can maintain a consistent production profile to 2040 and beyond.

 

“Bulyanhulu had effectively been trashed by its previous operators who also destroyed its relationship with its community as well as the government. But Barrick’s geologists saw the value in this unloved mine and we set about unlocking it, applying our core business principles,” said president and chief executive Mark Bristow.

 

The first step was to mend bridges with the state, which resulted in the establishment of the groundbreaking Twiga Minerals Corporation, a joint venture between Barrick and the government of Tanzania, which oversees the management of the Tanzanian mines and the equal sharing of the economic benefits they create.

 

The drill database was recompiled and validated, underground development was re-surveyed, new mineral resource and geotechnical block models were generated and mine designs were fully updated.

 

The processing plant was completely refurbished and ramped up to a 145tph throughput, as were the vertical shaft and materials handling infrastructure. A secondary crushing and sampling circuit was introduced along with an open conical stockpile and reclamation facility designed to improve mill feed. During the past quarter, it commissioned a PhotonAssayTM laboratory, the first of its kind in Africa and in Barrick’s global operations.

 

Bulyanhulu has also moved away from shipping concentrates abroad for processing and is now producing gold bars on site.

 

In the meantime, ongoing geometallurgical testwork could unlock further resources within developed mine areas while brownfields exploration probes the potential within and outside the Bulyanhulu permit for new mining fronts.

 

As the mine moves into the final stages of its ramp-up, the workforce has increased from 155 to 878, of whom 94% are Tanzanians, with 39% drawn directly from surrounding communities. Bulyanhulu is also increasing its economic support for local businesses, with 70% of its procurement now spent with Tanzanian contractors and suppliers.

 

Veladero Back on World-Class Track

 

At the time of the Barrick-Randgold merger, Veladero in Argentina was identified as an asset that was seriously at risk. The operation was running out of leach stacking space and its relationship with the government and the surrounding community had deteriorated to the point where it no longer had a social licence to operate.

 

The Covid-19 pandemic compounded its problems, with Argentina’s lockdown impacting on production as well on the progress of the mine’s two capital projects: construction of a new heap leach facility and the connection to the Chilean national power grid.

 

Barrick president and chief executive Mark Bristow says the turnaround achieved by the new Latin America management team after the merger is extraordinary. Veladero is poised to come in at the top of its production guidance range for this year, the Phase 6 heap leach project has been commissioned successfully and stakeholder relations have improved to the extent that Barrick is now the preferred mining partner in the country’s San Juan province.

 

Mine life has increased to more than 10 years on the back of successful resource conversions in the Cuatro Esquinas pushback and a new life of mine strategy designed to optimize the orebody. Exploration has resumed in the Veladero area and drilling at Lama — the Argentinian half of the border-straddling the Pascua-Lama project — has confirmed the existence of a large copper-gold porphyry system at depth.

 

Bristow says over the past two years Barrick has invested $219 million14 in its goal of making Veladero another of its Tier One mines. Going forward, work has already started on a Phase 7 leach pad and on increasing efficiencies, among other things by re-establishing the conveyor system from the crusher to the leach pads to reduce haul distances and greenhouse (GHG) emissions. In October, construction was completed on the powerline from Chile, which is expected to reduce costs and GHG emissions, cutting diesel consumption by 23 million litres and CO2 equivalent emissions by 100,000 tonnes.

 

To mark the completion of the Phase 6 project, Veladero established a community development fund, in partnership with San Juan, which will dedicate 1.5% of the mine’s gold sales to the improvement of the infrastructure in the province. Its commitment to the surrounding communities has also been demonstrated by the launch of a mining school and the use of local contractors for the Phase 6 and Phase 7 projects.

 

“Our support for local suppliers and contractors provides the community not only with the opportunity to develop their skills but also to partner with the mine in creating shared value,” says Marcelo Alvarez, executive director Argentina and Chile.

 

Veladero has also been successful in recruiting women in what has traditionally been a male-dominated industry. Fifteen of the 24 participants in its current technical training program are women and a further 17 are being trained as truck drivers.

 

On another front, its staff have been leading the charge in the fight against Covid-19. Veladero is closing in on being fully vaccinated, with 99.7% having received their first dose and 74% the second.

 

“It all starts with people,” says Mark Bristow. “And at this mine, 15,000 feet above sea level high in the Andes, a remarkable recovery in the face of adversity has been driven by its leadership and its workforce.”

 

Mining Industry Needs Strong Collective Action on Climate Change

 

Reducing emissions to counter the causes of climate change requires strong collective action by the mining industry, Barrick president and chief executive Mark Bristow says.

 

Bristow hailed the collective commitment by the International Council on Mining and Metals (ICMM) to a goal of net zero greenhouse gas emissions by 2050 in line with the recommendations of the Paris Agreement and said it represented an integrated approach that struck the right balance between environmental, social and economic needs. Barrick is a member of the ICMM and its Climate Change Advisory Group.

 

“Barrick already has a clear scientifically based emissions reduction roadmap which targets a 30% cut by 2030 against our 2018 baseline and a net zero outcome by 2050, in line with ICMM’s goal,” Bristow said.
The company’s group sustainability executive, Grant Beringer, said a series of carbon-reducing initiatives was already being implemented across Barrick’s global operations. At NGM, the world’s largest gold producing complex, which is operated and majority-owned by Barrick, these included projects such as the construction of a new solar power plant and the conversion of the TS power plant from coal to natural gas. These projects will support NGM’s transition from coal power to a dual energy solution which will reduce the complex’s carbon emissions by as much as 50%.

 

Barrick Commissions Africa’s First PhotonAssay Labratory

 

Barrick, in partnership with MSALABS Ltd, has successfully installed a Chrysos PhotonAssayTM laboratory at its Bulyanhulu mine in Tanzania — the first in Africa and in its global operations.

 

This new technique delivers faster, safer and more accurate analysis of gold, silver and complementary elements by non-destructive measurement of larger and more representative samples in as little as two minutes, enabling rapid turnaround of critical operational information that drives optimization throughout the mining value chain.

 

The system provides an environmentally friendly, chemical-free, more sustainable replacement for traditional fire assay methods, significantly reducing CO2 emissions and hazardous waste.

 

Introducing the new system to media at the mine, Barrick president and chief executive Mark Bristow said it was part of the group’s continuing drive to harness technological innovation in the service of operational excellence, occupational safety and environmental care.

 

Loulo-Gounkoto’s New Underground Mine Ramps Up as Exploration Continues to Extend Complex’s Life

 

The Loulo-Gounkoto gold complex is set to remain a major contributor to the Malian economy well into the future as it continues to replace the ore depleted by mining, says Barrick president and chief executive Mark Bristow.

 

Mines operated in Mali by Barrick and its predecessor Randgold have spent some $8 billion14 in the country in the form of taxes, royalties, salaries and payments to local suppliers over the past 24 years. To date this year, it has paid $318 million14 to the government in taxes, royalties and dividends and invested more than $13 million14 in community wellbeing projects ranging from health and education to economic development initiatives such as its Business Accelerator program, designed to equip budding entrepreneurs with management skills.

 

Bristow says Loulo-Gounkoto was on track to meet its annual production guidance, with its new underground mine at Gounkoto — the complex’s third underground operation — ramping up production. Through successful exploration it is on track to increase mineral reserves net of depletion for the third successive year and promising results from the Yalea Ridge and Gounkoto-Faraba targets reaffirm the potential for further life-of-mine extensions.

 

“Loulo-Gounkoto is one of the world’s greatest gold mining operations and it continues to confirm its status as a member of the industry’s elite Tier One club as well as the largest private sector contributor to Mali’s GDP,” Bristow says.

 

“In addition to the enormous value it creates for its stakeholders, Loulo-Gounkoto also aspires to a high level of social responsibility. Almost 40% of employees have been vaccinated against Covid-19 and 335 people have been vaccinated in the surrounding community. Security staff and other employees who come into contact with the community have undergone rigorous training in human rights. Work is also under way to secure the new certification standardized by the International Cyanide Management Institute.”

 

Loulo-Gounkoto is maintaining its commitment to the employment and advancement of host country nationals, in line with Barrick’s global policy, and people from the nearby Kenieba village have been successfully trained to operate key equipment at the new Gounkoto underground mine. The complex is almost entirely staffed and managed by Malian citizens.

 

Pueblo Viejo Progresses Life-Extension Project

 

Barrick’s Pueblo Viejo mine is continuing to advance a plant expansion and tailings storage facility project designed to extend its life to 2040 and beyond.

 

President and chief executive Mark Bristow says that so far this year the Tier One mine has paid $522 million in direct and indirect taxes, which brings its total tax payments since it went into commercial production in 2013 to just under $3 billion.14 The extension of its life means that it would continue to be a major creator of value for the Dominican Republic and its people far into the future.

 

“Of the mine’s 2,500 employees, 97% are Dominicans, many drawn from its surrounding communities which have all benefited substantially from its investment in upliftment programs. At present, the mine is involved in such programs in 58 surrounding communities. These include an agribusiness project intended to improve cacao cultivation in the area. In line with Barrick’s global policy of favoring local contractors and suppliers, Pueblo Viejo has also promoted the development of the local economy, spending more than $160 million with them over the past eight years14,” he says.

 

Bristow says that Pueblo Viejo’s management had been very successful in addressing the environmental liabilities left by the mine’s former operator, significantly improving the water quality of the two nearby rivers. The drive for gender diversity was also paying dividends, with women now accounting for 16% of the workforce.

 

“Our goal in the Dominican Republic, as elsewhere in the world, is to create long-term value for our stakeholders through our strategy of sustainable development. Pueblo Viejo’s expansion project has the potential to double the enormous contribution it has already made to the Dominican Republic’s economy. Without this project, however, that contribution could end soon,” he says.

 

Industry Leader Kibali Continues to Advance Automated Mining

 

The Kibali gold mine remains on track to achieve its production guidance for the year and grow its mineral reserves net of depletion, securing its future as a Tier One operation for at least another 10 years.

 

Barrick president and CEO Mark Bristow says at the same time continuing investment in technological innovation is keeping Kibali at the forefront of developments in automated mining.

 

Machine learning has been implemented at the mine’s three hydropower stations and reactive control of the enlarged battery installation will further reduce the need for back-up diesel generation, shrinking Kibali’s already relatively small carbon footprint. New automation software for the underground haulage loaders has been installed and the commissioning of a system for remote stope bogging now enables operators to control loaders from surface.

 

“Surface control is safer and more efficient, and it also creates employment opportunities for women in an industry where these are not abundant. It’s worth noting that all these operators are Congolese, as Kibali continues to employ and upskill locals in line with Barrick’s global policy of giving preference to host country nationals. Congolese citizens currently make up 94% of Kibali’s workforce including its leadership,” Bristow says.

 

“Five thousand of our employees and contractors go home to surrounding villages at the end of their shifts and the wellbeing of these communities is consequently a prime concern. This is exemplified by the effectiveness of Kibali’s anti-Covid-19 campaign which included the construction of a community treatment facility. With the support of the Congolese health authorities, we secured a supply of the AstraZeneca vaccine and to date 21% of employees and contractors have been vaccinated compared with the DRC’s countrywide average of 0.15%.”

 

Bristow says the growth of Kibali had catalyzed and supported the emergence of a thriving local economy in a region previously largely reliant on subsistence farming. In the year to date, the mine has spent $95 million14 with local contractors and suppliers, many of whom were nurtured by the mine through skills transfer and capacity building.

 

“To date Kibali has contributed $3.7 billion14 to the Congolese economy in the form of payments to contractors and suppliers, infrastructure community and support, salaries and royalties, taxes and permits. The success of our continuing exploration program around the mine confirms the potential for reserve growth from new open pittable resources and extensions to the high-grade underground orebodies, indicating that Kibali will materially benefit the DRC and its people for years to come.”

 

Tanzanian Mines on Track for Production Guidance, Well-Placed to Extend Lives

 

Barrick’s Tanzanian mines, North Mara and Bulyanhulu, are both set to meet their 2021 production targets as well as to replace depleted reserves through brownfields exploration.

 

President and chief executive Mark Bristow says the production ramp-up at Bulyanhulu is gaining momentum with plant performance ahead of expectations and recoveries at a consistent rate of 93%.

An 11% increase in tonnage was driven partly by an investment in three new fully automated loaders and three additional drills. Successful conversion and optimization of mineral resources in the upper portion of Deep West has been completed and is expected to add significant mineral reserves to the asset base, unlocking further value in the mine plan. In line with its long-term commitment to Tanzania, Barrick has also secured exploration targets elsewhere within Bulyanhulu’s mining licence.

 

At North Mara the commissioning of a brine treatment plant is scheduled for the fourth quarter of this year as part of Barrick’s successful drive to eliminate the mine’s historical environmental issues. This has also included a new water treatment plant and an upgraded tailings facility. During the past quarter the mine’s Gokona underground operation was connected to the national power grid, which will cut its diesel consumption by 43%. North Mara’s two open pits have been redesigned and integrated with the underground mine.

 

Bristow said Barrick was continuing to improve the quality of life in the villages around North Mara, in partnership with the mine’s community development committee. Key projects include construction of a tarmac road, classrooms, pediatric wards and laboratories, and support for agribusiness.

 

Since Barrick formed its pioneering partnership with the government through the Twiga partnership in 2020, it has paid $118 million in salaries, $496 million in taxes, levies and royalties and $609 million for locally sourced goods and services.14 It has also paid a maiden cash dividend of $250 million.14

 

Integration of Assets, Investment in Future Secure NGM’s Status as Industry Leader

 

Nevada Gold Mines (NGM) is demonstrating the impact of operator and majority-owner Barrick’s strategy of combining the best people with the best assets to deliver the best returns, says Barrick president and chief executive Mark Bristow.

 

Speaking at an update for local media and community leaders, Bristow said NGM — the world’s largest gold mining complex — stood out from the rest of the industry not only because of its size but because its wealth of projects and prospects secure its future as a high-quality, long-life operation for decades to come.

 

“The combination of the Nevada assets of Barrick and Newmont has unlocked the vast geological potential of this mineral-rich region by consolidating mines, processing facilities and landholdings. Anchored by the massive Carlin and Cortez mines, NGM is building up the third Tier One asset, Turquoise Ridge, while Goldrush, a world-class project in its own right, heads up a long pipeline of quality prospects,” he said.

 

“NGM has also built strong relations across the full spectrum of the mines’ previously neglected stakeholders, and its wide-ranging support for educational and other community development initiatives is securing its social licence as a valuable partner with Nevada and its people.”

 

Bristow cited Turquoise Ridge as an example of the transformative effect of asset consolidation. The high-grade underground orebody at Turquoise Ridge, then a Barrick property, was mined for years without a full understanding of its geology and was also constrained by the lack of its own processing plant. At the same time, Newmont’s neighboring Twin Creeks was facing the decline of production from its open pits and its processing facilities had never been pushed to deliver. The ramp-up of underground production at Turquoise Ridge, based on a completely new geological model, will pick up speed when its third shaft is completed next year, more than offsetting the drop in production from the now-integrated Twin Creeks. The integration of the two assets has also delivered new exploration opportunities in the gap between the two.

 

During the past quarter, the Goldrush project’s official Notice of Intent was published, putting NGM well on the way to permitting its next major orebody. The updated feasibility study and the successful processing of the first ore samples has strengthened confidence that additional resources will be converted to reserves later this year.

 

NGM continued to optimize its portfolio through the South Arturo/Lone Tree asset swap, which removed a closure liability from its balance sheet while securing additional ounces and geological upside by bringing the other 40% of South Arturo under its control. In the meantime, brownfields exploration is confirming a significant upside through prospects such as a major deposit in North Leeville and the promising Phoenix gold and copper satellite.

 

Bristow said NGM was continuing to invest in infrastructure capable of supporting mining far into the future. This includes advancing data analysis capabilities and reducing greenhouse gas (GHG) emissions. An example of the latter is the second phase of the TS solar power facility which will increase its solar capacity to 200MW and is the cornerstone of NGM’s commitment to cutting GHG emissions by 20% by 2025.

 

Reviewing the past quarter, Bristow said improved run times at all of NGM’s major processing facilities had lifted NGM’s performance while the restoration of the Carlin mill operations had set it up for a strong end to the year.

 

Exploration Veteran Passes the Baton to Experienced Geologist and Team Leader

 

Joel Holliday, senior vice president for Global Exploration, has been promoted to executive vice president for Exploration, effective November this year.

 

He takes up the position of veteran Rob Krcmarov, who will assume a part-time non-executive role as Technical Adviser to Barrick. Prior to the merger, Joel managed Randgold’s exploration teams for 15 years with discoveries including Gounkoto and Loulo 3. Rob’s career spans 33 years, 13 of which he spent leading Barrick’s global exploration teams. Under his watch, Barrick discovered and delineated multiple orebodies, including the world-class Goldrush deposit which is soon to go into production.

 

Appendix 1

 

2021 Operating and Capital Expenditure Guidance

 

GOLD PRODUCTION AND COSTS
  2021 forecast attributable production (000s oz) 2021 forecast cost of sales8 ($/oz) 2021 forecast total cash costs9 ($/oz) 2021 forecast all-in sustaining costs($/oz)
Carlin (61.5%)15 940 – 1,000 920 – 970 740 – 790 1,050 – 1,100
Cortez (61.5%)16 500 – 550 1,000 – 1,050 700 – 750 940 – 990
Turquoise Ridge (61.5%) 390 – 440 950 – 1,000 620 – 670 810 – 860
Phoenix (61.5%) 100 – 120 1,800 – 1,850 725 – 775 970 – 1,020
Long Canyon (61.5%) 140 – 160 800 – 850 180 – 230 240 – 290
Nevada Gold Mines (61.5%) 2,100 – 2,250 980 – 1,030 660 – 710 910 – 960
Hemlo 200 – 220 1,200 – 1,250 950 – 1,000 1,280 – 1,330
North America 2,300 – 2,450 990 – 1,040 690 – 740 940 – 990
         
Pueblo Viejo (60%) 470 – 510 880 – 930 520 – 570 760 – 810
Veladero (50%) 130 – 150 1,510 – 1,560 820 – 870 1,720 – 1,770
Porgera (47.5%)17
Latin America & Asia Pacific 600 – 660 1,050 – 1,100 600 – 650 1,000 – 1,050
         
Loulo-Gounkoto (80%) 510 – 560 980 – 1,030 630 – 680 930 – 980
Kibali (45%) 350 – 380 990 – 1,040 590 – 640 800 – 850
North Mara (84%) 240 – 270 970 – 1,020 740 – 790 960 – 1,010
Tongon (89.7%) 180 – 200 1,470 – 1,520 1,000 – 1,050 1,140 – 1,190
Bulyanhulu (84%) 170 – 200 980 – 1,030 580 – 630 810 – 860
Buzwagi (84%) 30 – 40 1,360 – 1,410 1,250 – 1,300 1,230 – 1,280
Africa & Middle East 1,500 – 1,600 1,050 – 1,100 690 – 740 920 – 970
         
Total Attributable to Barrick18,19,20 4,400 – 4,700 1,020 – 1,070 680 – 730 970 – 1,020
         
 

 

COPPER PRODUCTION AND COSTS

  2021 forecast attributable production (Mlbs) 2021 forecast cost of sales8 ($/lb) 2021 forecast C1 cash costs10 ($/lb) 2021 forecast all-in sustaining costs10 ($/lb)
Lumwana 250 – 280 1.85 – 2.05 1.45 – 1.65 2.25 – 2.45
Zaldívar (50%) 90 – 110 2.30 – 2.50 1.65 – 1.85 1.90 – 2.10
Jabal Sayid (50%) 70 – 80 1.40 – 1.60 1.10 – 1.30 1.30 – 1.50
Total Attributable to Barrick19 410 – 460 1.90 – 2.10 1.40 – 1.60 2.00 – 2.20
         
 

 

ATTRIBUTABLE CAPITAL EXPENDITURES

     
  ($ millions)      
Attributable minesite sustaining 1,250 – 1,450      
Attributable project 550 – 650      
Total attributable capital expenditures 1,800 – 2,100      

 

 

2021 OUTLOOK ASSUMPTIONS AND ECONOMIC SENSITIVITY ANALYSIS21

 

  2021 Guidance Assumption Hypothetical Change Impact on EBITDA22 (millions) Impact on TCC and AISC9,10
Gold price sensitivity $1,700/oz +/- $100/oz +/- $620 +/-$4/oz
Copper price sensitivity $2.75/lb +/- $0.25/lb +/- $60 +/- $0.01/lb

 

 

Appendix 2

Production and Cost Summary – Gold

 

  For the three months ended    
  9/30/21 6/30/21   % Change     9/30/20   % Change    
Nevada Gold Mines LLC (61.5%)a                      
Gold produced (000s oz attributable basis) 495 452   10   % 538   (8 ) %
Gold produced (000s oz 100% basis) 805 735   10   % 875   (8 ) %
Cost of sales ($/oz) 1,123 1,111   1   % 1,060   6   %
Total cash costs ($/oz)b 734 717   2   % 723   2   %
All-in sustaining costs ($/oz)b 975 1,014   (4 ) % 956   2   %
Carlin (61.5%)c                      
Gold produced (000s oz attributable basis) 209 190   10   % 276   (24 ) %
Gold produced (000s oz 100% basis) 340 309   10   % 448   (24 ) %
Cost of sales ($/oz) 1,017 1,043   (2 ) % 985   3   %
Total cash costs ($/oz)b 814 852   (4 ) % 800   2   %
All-in sustaining costs ($/oz)b 1,124 1,310   (14 ) % 1,036   8   %
Cortez (61.5%)d                      
Gold produced (000s oz attributable basis) 130 110   18   % 113   15   %
Gold produced (000s oz 100% basis) 212 178   18   % 184   15   %
Cost of sales ($/oz) 1,164 1,167   0   % 1,062   10   %
Total cash costs ($/oz)b 800 793   1   % 763   5   %
All-in sustaining costs ($/oz)b 1,065 1,029   3   % 1,133   (6 ) %
Turquoise Ridge (61.5%)                      
Gold produced (000s oz attributable basis) 82 78   5   % 76   8   %
Gold produced (000s oz 100% basis) 134 128   5   % 124   8   %
Cost of sales ($/oz) 1,169 1,131   3   % 1,097   7   %
Total cash costs ($/oz)b 788 752   5   % 745   6   %
All-in sustaining costs ($/oz)b 943 904   4   % 805   17   %
Phoenix (61.5%)                      
Gold produced (000s oz attributable basis) 31 28   11   % 30   3   %
Gold produced (000s oz 100% basis) 50 45   11   % 49   3   %
Cost of sales ($/oz) 1,777 1,864   (5 ) % 1,773   0   %
Total cash costs ($/oz)b 499 279   79   % 520   (4 ) %
All-in sustaining costs ($/oz)b 582 401   45   % 659   (12 ) %
Long Canyon (61.5%)                      
Gold produced (000s oz attributable basis) 43 46   (7 ) % 43   0   %
Gold produced (000s oz 100% basis) 69 75   (7 ) % 70   0   %
Cost of sales ($/oz) 796 691   15   % 877   (9 ) %
Total cash costs ($/oz)b 201 168   20   % 212   (5 ) %
All-in sustaining costs ($/oz)b 251 191   31   % 384   (35 ) %
Pueblo Viejo (60%)                      
Gold produced (000s oz attributable basis) 127 117   9   % 129   (2 ) %
Gold produced (000s oz 100% basis) 212 195   9   % 215   (2 ) %
Cost of sales ($/oz) 895 904   (1 ) % 791   13   %
Total cash costs ($/oz)b 521 533   (2 ) % 450   16   %
All-in sustaining costs ($/oz)b 728 723   1   % 609   20   %
Loulo-Gounkoto (80%)                      
Gold produced (000s oz attributable basis) 137 143   (4 ) % 139   (1 ) %
Gold produced (000s oz 100% basis) 171 179   (4 ) % 174   (1 ) %
Cost of sales ($/oz) 1,109 993   12   % 1,088   2   %
Total cash costs ($/oz)b 708 610   16   % 682   4   %
All-in sustaining costs ($/oz)b 1,056 1,073   (2 ) % 1,161   (9 ) %
Kibali (45%)                      
Gold produced (000s oz attributable basis) 95 91   4   % 91   4   %
Gold produced (000s oz 100% basis) 209 202   4   % 203   4   %
Cost of sales ($/oz) 987 1,038   (5 ) % 1,088   (9 ) %
Total cash costs ($/oz)b 597 645   (7 ) % 617   (3 ) %
All-in sustaining costs ($/oz)b 751 894   (16 ) % 817   (8 ) %
Veladero (50%)                      
Gold produced (000s oz attributable basis) 48 31   55   % 44   9   %
Gold produced (000s oz 100% basis) 96 62   55   % 89   9   %
Cost of sales ($/oz) 1,315 1,231   7   % 1,136   16   %
Total cash costs ($/oz)b 882 774   14   % 708   25   %
All-in sustaining costs ($/oz)b 1,571 1,698   (7 ) % 1,159   36   %
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 ($/oz)b     %     %
Tongon (89.7%)                      
Gold produced (000s oz attributable basis) 41 48   (15 ) % 64   (36 ) %
Gold produced (000s oz 100% basis) 45 53   (15 ) % 71   (36 ) %
Cost of sales ($/oz) 1,579 1,446   9   % 1,329   19   %
Total cash costs ($/oz)b 1,139 1,045   9   % 731   56   %
All-in sustaining costs ($/oz)b 1,329 1,162   14   % 777   71   %
Hemlo                      
Gold produced (000s oz) 26 42   (38 ) % 55   (53 ) %
Cost of sales ($/oz) 1,870 1,603   17   % 1,257   49   %
Total cash costs ($/oz)b 1,493 1,314   14   % 1,099   36   %
All-in sustaining costs ($/oz)b 2,276 1,937   18   % 1,497   52   %
North Mara (84%)                      
Gold produced (000s oz attributable basis) 66 63   5   % 67   (1 ) %
Gold produced (000s oz 100% basis) 79 75   5   % 80   (1 ) %
Cost of sales ($/oz) 993 975   2   % 903   10   %
Total cash costs ($/oz)b 796 816   (2 ) % 649   23   %
All-in sustaining costs ($/oz)b 985 952   3   % 758   30   %
Buzwagi (84%)                      
Gold produced (000s oz attributable basis) 4 19   (79 ) % 21   (81 ) %
Gold produced (000s oz 100% basis) 5 22   (79 ) % 25   (81 ) %
Cost of sales ($/oz) 1,000 1,315   (24 ) % 907   10   %
Total cash costs ($/oz)b 967 1,244   (22 ) % 687   41   %
All-in sustaining costs ($/oz)b 970 1,242   (22 ) % 693   40   %
Bulyanhulu (84%)                      
Gold produced (000s oz attributable basis) 53 35   51   % 7   657   %
Gold produced (000s oz 100% basis) 63 42   51   % 8   657   %
Cost of sales ($/oz) 1,073 1,164   (8 ) % 1,502   (29 ) %
Total cash costs ($/oz)b 724 776   (7 ) % 874   (17 ) %
All-in sustaining costs ($/oz)b 827 916   (10 ) % 913   (9 ) %
Total Attributable to Barrickf                      
Gold produced (000s oz) 1,092 1,041   5   % 1,155   (5 ) %
Cost of sales ($/oz)g 1,122 1,107   1   % 1,065   5   %
Total cash costs ($/oz)b 739 729   1   % 696   6   %
All-in sustaining costs ($/oz)b 1,034 1,087   (5 ) % 966   7   %
  1. These results represent our 61.5% interest in Carlin (including NGM’s 60% interest in South Arturo), Cortez, Turquoise Ridge, Phoenix and Long Canyon.
  2. Further information on these non-GAAP measures, including detailed reconciliations, is included in the endnotes to this press release.
  3. Included within our 61.5% interest in Carlin is NGM’s 60% interest in 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 and Buffalo Mountain properties and infrastructure. The exchange transaction closed on October 14, 2021.  Please refer to page 30 of our third quarter MD&A  for more details.
  4. 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.
  5. As Porgera was placed on care and maintenance on April 25, 2020, no operating data or per ounce data is provided.
  6. Excludes Pierina, Lagunas Norte, Morila (40%) for all periods 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 in November 2020.
  7. 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    
  9/30/21 6/30/21 % Change     9/30/20 % Change    
Lumwana          
Copper production (Mlbs) 57 56 2   % 62 (8 ) %
Cost of sales ($/lb) 2.54 2.36 8   % 2.06 23   %
C1 cash costs ($/lb)a 1.76 1.72 2   % 1.49 18   %
All-in sustaining costs ($/lb)a 2.68 2.92 (8 ) % 2.58 4   %
Zaldívar (50%)          
Copper production (Mlbs attributable basis) 24 22 9   % 24 0   %
Copper production (Mlbs 100% basis) 48 44 9   % 48 0   %
Cost of sales ($/lb) 3.13 3.56 (12 ) % 2.20 42   %
C1 cash costs ($/lb)a 2.33 2.68 (13 ) % 1.64 42   %
All-in sustaining costs ($/lb)a 2.77 3.15 (12 ) % 2.27 22   %
Jabal Sayid (50%)          
Copper production (Mlbs attributable basis) 19 18 6   % 17 12   %
Copper production (Mlbs 100% basis) 38 36 6   % 34 12   %
Cost of sales ($/lb) 1.51 1.47 3   % 1.43 6   %
C1 cash costs ($/lb)a 1.35 1.27 6   % 1.14 18   %
All-in sustaining costs ($/lb)a 1.55 1.39 12   % 1.17 32   %
Total Attributable to Barrick          
Copper production (Mlbs attributable basis) 100 96 4   % 103 (3 ) %
Cost of sales ($/lb)b 2.57 2.43 6   % 1.97 30   %
C1 cash costs ($/lb)a 1.85 1.83 1   % 1.45 28   %
All-in sustaining costs ($/lb)a 2.60 2.74 (5 ) % 2.31 13   %
  1. Further information on these non-GAAP measures, including detailed reconciliations, is included in the endnotes to this press release.
  2. 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).

 

 

Appendix 3

Financial and Operating Highlights

 

  For the three months ended       For the nine months ended    
  9/30/21   6/30/21     % Change       9/30/20   % Change       9/30/21   9/30/20   % Change    
Financial Results ($ millions)                    
Revenues 2,826   2,893   (2 ) %   3,540   (20 ) %   8,675   9,316   (7 ) %
Cost of sales 1,768   1,704   4   %   1,927   (8 ) %   5,184   5,603   (7 ) %
Net earningsa 347   411   (16 ) %   882   (61 ) %   1,296   1,639   (21 ) %
Adjusted net earningsb 419   513   (18 ) %   726   (42 ) %   1,439   1,426   1   %
Adjusted EBITDAb 1,669   1,719   (3 ) %   2,223   (25 ) %   5,188   5,386   (4 ) %
Adjusted EBITDA marginc 59  % 59 % 0   %   63 % (6 ) %   60  % 58 % 3   %
Minesite sustaining capital expendituresd 386   452   (15 ) %   415   (7 ) %   1,242   1,205   3   %
Project capital expendituresd 179   203   (12 ) %   126   42   %   513   287   79   %
Total consolidated capital expendituresd,e 569   658   (14 ) %   548   4   %   1,766   1,508   17   %
Net cash provided by operating activities 1,050   639   64   %   1,859   (44 ) %   2,991   3,779   (21 ) %
Net cash provided by operating activities marginf 37  % 22 % 68   %   53 % (30 ) %   34  % 41 % (17 ) %
Free cash flowb 481   (19 ) 2,632   %   1,311   (63 ) %   1,225   2,271   (46 ) %
Net earnings per share (basic and diluted) 0.20   0.23   (13 ) %   0.50   (60 ) %   0.73   0.92   (21 ) %
Adjusted net earnings (basic)per share 0.24   0.29   (17 ) %   0.41   (41 ) %   0.81   0.80   1   %
Weighted average diluted common shares (millions of shares) 1,779   1,779   0   %   1,778   0   %   1,779   1,778   0   %
Operating Results                      
Gold production (thousands of ounces)g 1,092   1,041   5   %   1,155   (5 ) %   3,234   3,554   (9 ) %
Gold sold (thousands of ounces)g 1,071   1,070   0   %   1,249   (14 ) %   3,234   3,693   (12 ) %
Market gold price ($/oz) 1,790   1,816   (1 ) %   1,909   (6 ) %   1,800   1,735   4   %
Realized gold priceb,g ($/oz) 1,771   1,820   (3 ) %   1,926   (8 ) %   1,789   1,748   2   %
Gold cost of sales (Barrick’s share)g,h ($/oz) 1,122   1,107   1   %   1,065   5   %   1,101   1,054   4   %
Gold total cash costsb,g ($/oz) 739   729   1   %   696   6   %   728   701   4   %
Gold all-in sustaining costsb,g ($/oz) 1,034   1,087   (5 ) %   966   7   %   1,046   984   6   %
Copper production (millions of pounds)g 100   96   4   %   103   (3 ) %   289   338   (14 ) %
Copper sold (millions of pounds)g 101   96   5   %   116   (13 ) %   310   349   (11 ) %
Market copper price ($/lb) 4.25   4.40   (3 ) %   2.96   44   %   4.17   2.65   57   %
Realized copper priceb,g ($/lb) 3.98   4.57   (13 ) %   3.28   21   %   4.21   2.78   51   %
Copper cost of sales (Barrick’s share)g,i ($/lb) 2.57   2.43   6   %   1.97   30   %   2.36   2.01   17   %
Copper C1 cash costsb,g ($/lb) 1.85   1.83   1   %   1.45   28   %   1.75   1.52   15   %
Copper all-in sustaining costsb,g ($/lb) 2.60   2.74   (5 ) %   2.31   13   %   2.52   2.17   16   %
  As at 9/30/21   As at
6/30/21
% Change   As at
9/30/20
% Change        
Financial Position ($ millions)                      
Debt (current and long-term) 5,154   5,152   0   %   5,161   0   %        
Cash and equivalents 5,043   5,138   (2 ) %   4,744   6   %        
Debt, net of cash 111   14   693   %   417   (73 ) %        
  1. Net earnings represents net earnings attributable to the equity holders of the Company.
  2. Further information on these non-GAAP measures, including detailed reconciliations, is included in the endnotes to this press release.
  3. Represents adjusted EBITDA divided by revenue.
  4. 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.
  5. Total consolidated capital expenditures also includes capitalized interest of $4 million and $11 million, respectively, for the three and nine month periods ended September 30, 2021 (June 30, 2021: $3 million and September 30, 2020: $7 million and $16 million, respectively).
  6. Represents net cash provided by operating activities divided by revenue.
  7. On an attributable basis.
  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).
  9. Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick’s ownership share).

 

 

Consolidated Statements of Income

 

Barrick Gold Corporation
(in millions of United States dollars, except per share data) (Unaudited)
Three months ended September 30,     Nine months ended September 30,    
    2021       2020       2021       2020    
Revenue (notes 5 and 6) $ 2,826     $ 3,540     $ 8,675     $ 9,316    
Costs and expenses (income)        
Cost of sales (notes 5 and 7)   1,768       1,927       5,184       5,603    
General and administrative expenses   27       50       112       161    
Exploration, evaluation and project expenses   67       72       205       221    
Impairment (reversals) charges (notes 9b and 13)   10       4       (77 )     (309 )  
Loss on currency translation   5       16       16       34    
Closed mine rehabilitation   4       8       33       105    
Income from equity investees (note 12)   (101 )     (95 )     (308 )     (210 )  
Other expense (income) (note 9a)   18       (78 )     63       (40 )  
Income before finance costs and income taxes $ 1,028     $ 1,636     $ 3,447     $ 3,751    
Finance costs, net   (93 )     (81 )     (271 )     (267 )  
Income before income taxes $ 935     $ 1,555     $ 3,176     $ 3,484    
Income tax expense (note 10)   (323 )     (284 )     (1,040 )     (928 )  
Net income $ 612     $ 1,271     $ 2,136     $ 2,556    
Attributable to:        
Equity holders of Barrick Gold Corporation $ 347     $ 882     $ 1,296     $ 1,639    
Non-controlling interests (note 17) $ 265     $ 389     $ 840     $ 917    
         
Earnings per share data attributable to the equity holders of Barrick Gold Corporation (note 8)        
Net income        
Basic $ 0.20     $ 0.50     $ 0.73     $ 0.92    
Diluted $ 0.20     $ 0.50     $ 0.73     $ 0.92    

 

The notes to these unaudited condensed interim financial statements, which are contained in the Third Quarter Report 2021 available on our website are an integral part of these consolidated financial statements.

 

 

Consolidated Statements of Comprehensive Income

 

Barrick Gold Corporation
(in millions of United States dollars) (Unaudited)
Three months ended September 30,     Nine months ended September 30,    
    2021       2020       2021       2020    
Net income $ 612     $ 1,271     $ 2,136     $ 2,556    
Other comprehensive income (loss), net of taxes        
Items that may be reclassified subsequently to profit or loss:        
Unrealized losses on derivatives designated as cash flow hedges, net of tax $nil, $nil, $nil and $nil         (3 )           (4 )  
Realized losses on derivatives designated as cash flow hedges, net of tax $nil, $nil, $nil and $nil         3       3       3    
Currency translation adjustments, net of tax $nil, $nil, $nil and $nil   2       (1 )     2       (6 )  
Items that will not be reclassified to profit or loss:        
Actuarial loss on post employment benefit obligations, net of tax $nil, $1, $nil and $1                     (2 )  
Net change on equity investments, net of tax $2, ($34), $7 and ($34)   (12 )     38       (49 )     131    
Total other comprehensive (loss) income   (10 )     37       (44 )     122    
Total comprehensive income $ 602     $ 1,308     $ 2,092     $ 2,678    
Attributable to:        
Equity holders of Barrick Gold Corporation $ 337     $ 919     $ 1,252     $ 1,761    
Non-controlling interests $ 265     $ 389     $ 840     $ 917    

 

The notes to these unaudited condensed interim financial statements, which are contained in the Third Quarter Report 2021 available on our website are an integral part of these consolidated financial statements.

 

 

Consolidated Statements of Cash Flow

 

 Barrick Gold Corporation
(in millions of United States dollars) (Unaudited)
Three months ended September 30,     Nine months ended September 30,    
    2021       2020       2021       2020    
OPERATING ACTIVITIES        
Net income $ 612     $ 1,271     $ 2,136     $ 2,556    
Adjustments for the following items:        
Depreciation   538       574       1,545       1,664    
Finance costs, net   101       83       295       280    
Impairment (reversals) charges (notes 9b and 13)   10       4       (77 )     (309 )  
Income tax expense (note 10)   323       284       1,040       928    
Income from investment in equity investees   (101 )     (95 )     (308 )     (210 )  
Gain on sale of non-current assets   (5 )     (2 )     (15 )     (54 )  
Loss on currency translation   5       16       16       34    
Change in working capital (note 11)   58       (3 )     (191 )     (317 )  
Other operating activities (note 11)   (17 )     (149 )     (133 )     (43 )  
Operating cash flows before interest and income taxes   1,524       1,983       4,308       4,529    
Interest paid   (18 )     (19 )     (171 )     (173 )  
Income taxes paid1   (456 )     (105 )     (1,146 )     (577 )  
Net cash provided by operating activities   1,050       1,859       2,991       3,779    
INVESTING ACTIVITIES        
Property, plant and equipment        
Capital expenditures (note 5)   (569 )     (548 )     (1,766 )     (1,508 )  
Sales proceeds   16       8       21       24    
Investment sales         2             208    
Divestitures (note 4)               19       256    
Dividends received from equity method investments   53       38       214       92    
Shareholder loan repayments from equity method investments   1       46       2       47    
Net cash used in investing activities   (499 )     (454 )     (1,510 )     (881 )  
FINANCING ACTIVITIES        
Lease repayments   (5 )     (8 )     (15 )     (20 )  
Debt repayments               (7 )     (351 )  
Dividends   (158 )     (141 )     (475 )     (387 )  
Return of capital (note 16)   (250 )           (500 )        
Funding from non-controlling interests (note 17)               12       1    
Disbursements to non-controlling interests (note 17)   (270 )     (259 )     (741 )     (693 )  
Other financing activities (note 11)   37             101       (15 )  
Net cash used in financing activities   (646 )     (408 )     (1,625 )     (1,465 )  
Effect of exchange rate changes on cash and equivalents         4       (1 )     (3 )  
Net increase (decrease) in cash and equivalents   (95 )     1,001       (145 )     1,430    
Cash and equivalents at the beginning of period   5,138       3,743       5,188       3,314    
Cash and equivalents at the end of period $ 5,043     $ 4,744     $ 5,043     $ 4,744    
  1. Income taxes paid excludes $(26) million (2020: $44 million) for the three months ended September 30, 2021 and $67 million (2020: $113 million) for the nine months ended September 30, 2021 of income taxes payable that were settled against offsetting VAT receivables.

 

The notes to these unaudited condensed interim financial statements, which are contained in the Third Quarter Report 2021 available on our website are an integral part of these consolidated financial statements.

 

 

Consolidated Balance Sheets

 

Barrick Gold Corporation As at September 30,     As at December 31,    
(in millions of United States dollars) (Unaudited)   2021       2020    
ASSETS    
Current assets    
Cash and equivalents (note 14a) $ 5,043     $ 5,188    
Accounts receivable   600       558    
Inventories   1,821       1,878    
Other current assets   547       519    
Total current assets $ 8,011     $ 8,143    
Non-current assets    
Equity in investees (note 12)   4,762       4,670    
Property, plant and equipment   24,747       24,628    
Goodwill   4,769       4,769    
Intangible assets   151       169    
Deferred income tax assets   55       98    
Non-current portion of inventory   2,651       2,566    
Other assets   1,488       1,463    
Total assets $ 46,634     $ 46,506    
LIABILITIES AND EQUITY    
Current liabilities    
Accounts payable $ 1,444     $ 1,458    
Debt   15       20    
Current income tax liabilities   212       436    
Other current liabilities   309       306    
Total current liabilities $ 1,980     $ 2,220    
Non-current liabilities    
Debt   5,139       5,135    
Provisions   2,923       3,139    
Deferred income tax liabilities   3,175       3,034    
Other liabilities   1,327       1,268    
Total liabilities $ 14,544     $ 14,796    
Equity    
Capital stock (note 16) $ 28,746     $ 29,236    
Deficit   (7,132 )     (7,949 )  
Accumulated other comprehensive loss   (30 )     14    
Other   2,034       2,040    
Total equity attributable to Barrick Gold Corporation shareholders $ 23,618     $ 23,341    
Non-controlling interests (note 17)   8,472       8,369    
Total equity $ 32,090     $ 31,710    
Contingencies and commitments (notes 5 and 18)    
Total liabilities and equity $ 46,634     $ 46,506    

 

The notes to these unaudited condensed interim financial statements, which are contained in the Third Quarter Report 2021 available on our website are an integral part of these consolidated financial statements.

 

 

Consolidated Statements of Changes in Equity

 

Barrick Gold Corporation   Attributable to equity holders of the company    
(in millions of United States dollars) (Unaudited) Common Shares (in thousands)   Capital stock     Retained earnings (deficit)     Accumulated other comprehensive income (loss)1     Other2     Total equity attributable to shareholders     Non-controlling interests     Total equity    
At January 1, 2021 1,778,190   $29,236     ($7,949 )   $14     $2,040     $23,341     $8,369     $31,710    
Net income           1,296                   1,296       840       2,136    
Total other comprehensive loss                 (44 )           (44 )           (44 )  
Total comprehensive income (loss)           1,296       (44 )           1,252       840       2,092    
Transactions with owners                
Dividends           (475 )                 (475 )           (475 )  
Return of capital (note 16)     (500 )                       (500 )           (500 )  
Issued on exercise of stock options 50                                            
Funding from non-controlling interests (note 17)                                   12       12    
Disbursements to non-controlling interests (note 17)                                   (749 )     (749 )  
Dividend reinvestment plan (note 16) 147     4       (4 )                                
Share-based payments 899     6                   (6 )                    
Total transactions with owners 1,096     (490 )     (479 )           (6 )     (975 )     (737 )     (1,712 )  
At September 30, 2021 1,779,286   $28,746     ($7,132 )   ($30 )   $2,034     $23,618     $8,472     $32,090    
                 
At January 1, 2020 1,777,927   $29,231     ($9,722 )   ($122 )   $2,045     $21,432     $8,395     $29,827    
Net income           1,639                   1,639       917       2,556    
Total other comprehensive income                 122             122             122    
Total comprehensive income           1,639       122             1,761       917       2,678    
Transactions with owners                
Dividends           (387 )                 (387 )           (387 )  
Issuance of 16% interest in Tanzania mines                                   238       238    
Sale of Acacia exploration properties                       (13 )     (13 )     13          
Issued on exercise of stock options 70                                            
Funding from non-controlling interests                                   1       1    
Disbursements to non-controlling interests                                   (713 )     (713 )  
Dividend reinvestment plan 129     4       (4 )                                
Share-based payments                       6       6             6    
Total transactions with owners 199     4       (391 )           (7 )     (394 )     (461 )     (855 )  
At September 30, 2020 1,778,126   $29,235     ($8,474 )   $     $2,038     $22,799     $8,851     $31,650    
  1. Includes cumulative translation losses at September 30, 2021: $94 million (December 31, 2020: $95 million; September 30, 2020: $94 million).
  2. Includes additional paid-in capital as at September 30, 2021: $1,996 million (December 31, 2020: $2,002 million; September 30, 2020: $2,000 million).

 

The notes to these unaudited condensed interim financial statements, which are contained in the Third Quarter Report 2021 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 Steven Yopps, MMSA, Manager of Growth Projects, Nevada Gold Mines; Craig Fiddes, SME-RM, Manager – Resource Modeling, Nevada Gold Mines; Chad Yuhasz, P.Geo, Mineral Resource Manager, Latin America & Asia Pacific; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral Resources Manager: Africa & Middle East; Rodney Quick, MSc, Pr. Sci.Nat, Mineral Resource Management and Evaluation Executive; John Steele, CIM, Metallurgy, Engineering and Capital Projects Executive; and Rob Krcmarov, FAusIMM, Executive Vice President, Exploration and Growth – each a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

 

Posted November 4, 2021

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