Barrick Maintains Industry Lead With Increased Reserves and Resources Driving Growth
Barrick’s strategy of investing in organic growth through exploration and mineral resource management more than replaced gold reserves for the second straight year and significantly increased copper resources year on year, providing further support for both the company’s 10-year production forecast and its growth profile.
Announcing Barrick’s results for the 2022 year and Q4, president and chief executive Mark Bristow said the company had always believed that discovering ounces was better than buying them at a premium in a sector where reserves and resources were diminishing.
“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 $1.6 billion to shareholders in 2022 through dividends and share buybacks and has announced a further share buyback program of up to $1 billion for the next twelve months.1 During the past quarter, Moody’s upgraded the company’s long-term corporate credit rating from Baa1 to A3, making Barrick the highest-rated company in the gold mining sector.
A stronger Q4 operational performance, notably from Cortez and Carlin in Nevada, Pueblo Viejo in the Dominican Republic and Tongon in Côte d’Ivoire, contributed to annual gold production of more than 4.1 million ounces2 in a year impacted by infrastructural issues at Turquoise Ridge in Nevada and the replacement of the rock winder at Kibali in the Democratic Republic of Congo. Copper production from Lumwana in Zambia and Jabal Sayid in Saudi Arabia was well within guidance.
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 Balochistan province of Pakistan. Reko Diq is expected to double the size of the company’s copper production capacity when it is commissioned in 2028. Barrick owns 50% of the project, and will operate it, with the balance shared by the Government of Balochistan and three Pakistani state-owned enterprises.
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 Nevada, Gara West in Mali, North Mara in Tanzania, and Jabal Sayid in Saudi Arabia.
Greenfields exploration continues to deliver new opportunities across Barrick’s expanding global footprint.
“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 the United States and in Africa.
If you factor in the ounces produced under our management,15 we’re the largest in the world. We’ve been building our copper portfolio and when Reko Diq comes on stream it will lift us into the premier league of copper producers.
Given these resources, our proven strategy and our global expertise, I believe the case for investment in Barrick is becoming increasingly compelling,” Bristow said.
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 Mark Bristow will host a live presentation today at 11:00 EST / 16:00 UTC, with an interactive webinar linked to a conference call. Participants will be able to ask questions.
Q4 Dividend Declared with Record Annual Returns to Shareholders in 2022
Barrick today declared of a dividend of $0.10 per share for the fourth quarter of 2022. The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of 2022. The Q4 2022 dividend will be paid on March 15, 2023 to shareholders of record at the close of business on February 28, 2023.
In addition to the dividends paid in 2022, Barrick repurchased 24.25 million shares under the share buyback program that was announced in February 2022. As a result, $1.6 billion of cash was returned to shareholders through dividends and share buybacks during the year, exceeding the record $1.4 billion of distributions made in 2021.
“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 Graham Shuttleworth.
