Barrick Advances Lumwana Super Pit Expansion as Copper Output Rises

Barrick’s Lumwana Copper Expansion in Zambia Remains on Track for 2028 Production Target

Construction of the Lumwana Super Pit copper expansion project in Zambia remained on schedule and within budget during the first quarter of 2026, mining giant Barrick Gold announced on Monday, 11 May.

The company confirmed that the first lift of the mill building wall was successfully completed during the quarter.

Mill shells have already been delivered to the site, while the first shipments of structural steel are expected before the end of June.

Barrick expects 2026 capital expenditure for the project to fall at the lower end of its guidance range of $750 million to $850 million.

Total capital investment for the Lumwana expansion is projected at approximately $2 billion.

The company said first copper production from the expanded operation remains on track for the end of the first quarter of 2028.

Copper Production and Costs

Barrick reported first-quarter copper production of 49,000 tonnes, representing an 11% increase year-on-year and aligning with company targets.

However, higher operational expenses pushed production costs upward. Copper cost of sales rose 17% to $3.41 per pound, while copper cash costs increased 14% to $2.57 per pound.

All-in sustaining costs (AISC) climbed 20% to $3.67 per pound, largely due to higher royalties linked to stronger copper prices and rising site operating costs.

Despite the cost increases, Barrick maintained its 2026 copper production guidance at between 190,000 and 220,000 tonnes.

The company also reaffirmed its cost guidance, projecting copper cost of sales between $3.05/lb and $3.35/lb, cash costs between $2.20/lb and $2.45/lb, and AISC between $3.45/lb and $3.75/lb.

Barrick president and CEO Mark Bristow said copper continues to play a critical role in the company’s long-term growth strategy.

Strong Gold Performance Boosts Earnings

Barrick also delivered strong gold production results during the quarter, producing 719,000 ounces, exceeding guidance due to improved output from the Loulo-Gounkoto complex in West Africa, as well as strong performances at NGM and Veladero.

The company generated $5.22 billion in revenue during the quarter, alongside $2.55 billion in operating cash flow and $1.21 billion in attributable free cash flow.

Barrick said stronger gold prices, increased production, and lower operational costs significantly boosted earnings and cash generation compared to the same period last year.

Net earnings reached $1.60 billion, while adjusted net earnings came in at $1.65 billion. EBITDA rose 103% year-on-year to $2.76 billion, with the EBITDA margin improving by 66%.

Gold cost of sales averaged $1,922 per ounce during the quarter, while total cash costs stood at $1,327 per ounce and AISC at $1,708 per ounce. Barrick attributed the improved cost performance to greater mining and processing efficiencies.

The company expects gold production to continue increasing throughout 2026, forecasting second-quarter output between 730,000 and 770,000 ounces.

Shareholder Returns and Outlook

Barrick’s 2026 cost guidance is based on an assumed oil price of $70 per barrel. The company noted that every $10 change in oil prices impacts diesel-related costs by approximately $12 per ounce across gold operations and $0.04 per pound at copper sites.

The company declared a quarterly dividend of $0.175 per share as part of its policy to distribute 50% of attributable free cash flow annually to shareholders.

In addition, Barrick’s board approved a share repurchase programme of up to $3 billion in outstanding common shares at prevailing market prices.