Q4 2020 Barrick Gold Corp Earnings Call

[music].

Ladies and gentlemen, thank you for standing by this is the conference operator welcome to the Barrick 2024th quarter results Conference call. During the presentation. All participants are in listen only mode. Following the presentation, we will conduct a question and answer session.

At that time, if you have a question. Please press star followed by one on your telephone keypad at any time during the conference should you need operator assistance, Please press star and zero.

As a reminder, this conference call is being recorded and a replay will be available on the Barrick website. Later today February 18th 2021, I would now like to turn you over to Mark Bristow Chief Executive Officer. Please go ahead Sir.

Okay.

Thank you very much and good morning, good afternoon, ladies and gentlemen.

Welcome again to our presentation.

Alright, Thank you had Q4 results.

The posture as being one of them.

Right.

So unprecedented challenges we delivered on our production guidance and at the same time, we continue.

Our key projects.

Among the day.

We ask our ex.

Expansion plan the turquoise ridge.

Yeah.

The Gulf Gold Rush inspiration design and the.

Underground mine at Qatar.

We have moved to understanding of our ore bodies are putting geology front and center.

And we can now optimize our mine plans.

Foundations.

The sale of non core assets generated the one in Australian dollars, we promised and box cleaning up our portfolio, we aligned it with our strategic focus.

T L one months.

Our world class business.

Needs a global presence.

Great tier one asset.

In any jurisdiction.

Which means that some of the operations are located and more.

Political debates.

In addition to the coronavirus pandemic last year, we also had to deal with the Argentina financial crisis.

And Molly.

Major impact of political Tom you mentioned in the DRC and the closure of coal growth in Papua New Guinea.

Barrick has clearly demonstrated that it can manage risks across our book broad range of asset.

With the leadership capable.

Running a large and complex business.

But also recognizing and realizing new opportunities.

Please take note of this cautionary statement and for those who need more time to review it is available on our website.

Keith in the past year's performance what is the effectiveness.

ESG strategy, which is powered at all levels by a long established partnership philosophy, and our close relations ship all else day a cold.

From investors to host communities.

This was evident.

Very successful Covid containment programs, which profit the impact of the pandemic on our business and our people and also enabled us to provide much needed and welcome support to our host countries.

E N E G.

Most of the attention recently, but I would argue that it's social dimension is as important.

Particularly concerned and.

And that's the issue of poverty.

Arguably the greatest problem facing mankind is not more prominently on the agenda.

The worlds poorest people living at port fees, and easing the law, but real quick.

And not just.

Yes.

This is not to say that we shouldn't underestimate the gravity of the environmental challenge.

Barrick has a clear.

Our road map for the reduction of greenhouse gas emissions.

Which is based on climate sites and operational realities, rather than wishful thinking all long dated aspirations.

Oh Landmarked targets listed here.

Constant review.

All our operations have practical plans for transitioning to cleaner and more efficient energy sources and water management and we are cognizant of the necessity to innovate new power plants for a future bonds and short.

Barrick aspires.

To be an industry leader E S T as in other things.

Yeah.

This is a health and safety scorecard for 2020 and as you can see there was a significant improvement with both lost time and total recordable callable injuries decreasing by big margins.

Unfortunately, as previously disclosed and otherwise impeccable record.

And by ex Pats.

Jacque vitality at Kibali in November of 2020.

They were nose high severity environmental incidents across the group during the year and the number of medium severity advanced applaud.

As these numbers show, we've continued to reduce our emissions and improved our water usage and recycling right.

Okay.

What do we return is in better shape than the water we received.

The photographs on the right show. One example of the difference we've made since taking over North Mara where one of our priorities was to simplify water management debt.

Our social license to operate requires the goodwill of our host communities and is closely aligned with our partnership philosophy.

During 2020 fully functional community development committees were established at all the operational side.

And they were instrumental in deciding how best to invest the more than $26 million, we spent on quality of life.

Ex in the course of the.

Last year, we set ourselves very specific debt.

You can see here, we've checked all those boxes.

We met our production targets.

Delivered on our business plans and fully capitalized on the higher gold price and copper prices.

We increased free cash flow to an annual record of $3 $4 billion against the 27% rise in the gold price and we achieved our goal of zero net debt by the end of the.

It's worth recalling.

Debt as recently as <unk> T cell gene.

Eric was burdened by debt of more than $13 billion.

The quarterly dividend has also tripled since the merger with Randgold.

And since it was announced more than two years ago.

As I said tripled the quarterly dividend and in addition to the book.

Dividend as you all have read today, we are proposing a capital return to shareholders of $750 million to be paid in three chance tranches through this year.

This return is sourced from the proceeds of the sale of our stake in Kalgoorlie.

As well as other non core assets since 2000.

In line with our policy of returning surplus funds to our shareholders.

The solid operating results were driven by and now this.

Yes.

From well below NAV cause the Dominican Republic.

Boolean Hulu in Tanzania, and the continued improvement at the Turquoise Ridge complex in Nevada.

As I noted earlier production was at the midpoint of guidance and total cash costs and all in sustaining costs were within the guidance.

Despite higher royalties due to the gold price.

Our record free cash flow and zero net debt are particularly gratifying features of the numbers as are the very significant returns we delivered to our shareholders.

It's wholesale.

That Moody's has upgraded EBITDA.

It can be double a one which is the long term.

Old sector.

It's my view that the consolidation of the gold industry is not yet complete and as these numbers show Barrick is well equipped to play a big part in future developments.

Now to North America, and our operations there we start with the five year outlook for that region.

Yeah.

Going forward, our advancing our ore body knowledge.

Okay.

Auction profile and managing all in sustaining costs.

This is consistent with our November Investor day with some capital.

Ed.

And to both 2021.

In 2022.

There are also some opportunities to them.

I will touch on in the next few slides.

In Nevada, the best potential potential or near to medium term life of mine no debt.

Alright, north level.

Oh mild.

And gold rush as well as the range project at Goldstrike.

The best.

For significant new discoveries are in the area between turquoise ridge and twin creeks.

Between pipeline and Robertson.

And as the Cortez complex, then Collyn basin south of gold quarry.

I have great day expectations for the North Leavell area and the team is currently prioritizing the improvement of the geological model and drilling to accelerate the delivery of ounces into the call and mining plan.

Results to date from five seven drill holes have confirmed at least two emerging high grade areas.

Yeah.

Average reserve grade at level.

Closer to the existing mine infrastructure continues to extend the tariff ore body to the north and the west.

The column complex is richly endowed with gold deposits and this flagship asset has some very exciting opportunities not only for resource expansion, but also for new world class discoveries.

In 'twenty 'twenty.

The current complex delivered at the midpoint of its production guidance.

And also kept costs well within the guidance range. This.

This year and the next tool see substantial investment in the future.

In addition to growing ounces through exploration at North Leavell, Rita K and grain the introduction of improvements to increase processing options.

As well plus force.

On the agenda.

Like calling the Cortez complex has a wealth of opportunities for expansion and growth.

The gold rush in formal discoveries are good examples of our policy of first understanding the geological framework and then building the exploration programs around that.

At full mile the improved confidence in our geological understanding is demonstrated by our first declaration of an indicated resource that's under a half a million ounces at around 10 times.

While still growing the inferred resource to two 3 million ounces at around 11 grams per ton by including Sofia.

I have no doubt that this resource will grow once we drive the development from gold rush and infill drill the four mile project.

Still in the Cortez complex.

Pipeline Crossroads is a world class legacy deposits and we continue to grow the resources at the Robertson deposits.

We are also progressing the feasibility work at Robinson, while taking a closer look.

At what lies between them.

Yeah.

Cortez itself exceeded the top end of its production guidance last year.

The gold Rush project is on track to expose his first ore in the first half of this year.

And the government's record of decision is now expected in the first quarter of 2022 rather than the.

Of this year.

This however will not impact the mine plan with a focus now on better understanding of the ore body as we opened it up while we finished the underground feasibility study.

For the Standalone gold rush portion.

We're exploring the possibility as I indicated earlier of reducing their cost and timing of drilling at four miles through underground access from gold rush.

Once gold rush and formal all up and running they will boost the Cortez complex is annual production.

And then should.

One status for.

Yes to come.

Turquoise Ridge.

Highest grades in the industry.

It was developed at a load as a low tonnage high grade mine and not based on a proper geological model.

This project and mine represents a significant opportunity for improvement it.

It has two huge deposits.

At either end of an eight kilometer trend.

What the historically poor geological understanding and a lot of potentially prospective ground between them.

We've done a great deal of work on this since the formation of Nevada Gold mines, and we're starting to generate new targets and what was thought to be a maturing district.

As shown in the section.

The newly discovered Midway falls between turquoise ridge and to increase could be unimportant district senile mineralization control.

The turquoise ridge complex has been struggling and production for the year fell short of guidance.

There was a marked turnaround however in the fourth quarter and ongoing optimization should deliver further improvements for this year, including a ramp up in underground development.

Construction of the third shaft remains unscheduled and within budget with commissioning planned for late 2022.

The shaft is designed to be able to increase hoisting capacity improve ventilation and shortened haulage distances for that operation.

Still in Nevada, Phoenix, and long Canyon are small, but very efficient low cost operations.

Exceeding the top end of production guidance and delivering exceptional margins.

North of the border in our home country, Canada Hemlo is made a remarkable journey from a survival mode to a per.

Potential she has to mine.

At the time of the merger.

We adopted whether it was actually a profitable asset.

But after unpacking, the geology and rebuilding the models, we found many opportunities not only to turn that into an efficient underground operations, but also to boulder to reserves and extend its life.

Most notably recent drilling has indicated the potential for a discrete parallel mineralized structure to the west of the main zone.

Further drilling is planned in 2012.

To improve the geological understanding of this area.

[laughter] last year Hemlo beat the top end of its production guidance and this year a separate portal development well ex access it's up a seaside providing a third mining front.

And increased flexibility mining.

Mining is expected to begin in the second half of this year.

Latin America.

Is there a region with many challenges mainly legacy issues that impact on our social license to operate but also an abundance of opportunities with.

We've put a lot of work into fixing our businesses and relationships there.

And last year I personally visited the region four times with molecule.

Leads that region of Barrick to review progress at our operations and also to meet with government and community leaders leaders and really invest in a new management teams across that region.

Overall, the price have been or are being addressed.

And even the situation in Papua New Guinea is progressing to what I trust will be a reasonable exceptional acceptable resolution to barrick as well as the government.

In the meantime, we have left program out of our guidance and then Ted you added back once we are able to reach a give agreement with the various stakeholders in Papua New Guinea, including government and the land guidance.

I would also point to the reduced production forecast at value Dara compared to what we shared with you at our November Investor Day.

This is mainly due to the transition plan to the new phase six to 10 project from the old Valley leaching facility.

Only recently finalized.

With the government.

We have a new exploration of new business team for the region and as a result, all working to expand our footprint and open up new opportunities across South America.

I also refer you to choose days announcement on the sale of Lagunas Norte day.

Which is this is in Peru, which is part of our continued rationalization of our core portfolio that does not fit with our long term investment strategy.

As Pablo via new.

New targets have been our debt and deferred and a particularly interesting one is being developed south of the more pets within the joint venture mining lease.

Our recently established Pueblo ground day project immediately adjacent to the PV 10 of men's has secured a strategically important parcel of land, which is critical for PVC expansion plan.

Pablo vein staged a great second half recovery hosting a mold throughput record for the second straight year to achieve its production guidance.

The expansion project will realize the operations full potential by unlocking a by unlocking just over 9 million ounces of gold currently excluded from reserves due to the lack of adequate tailings and storage facility.

The plant is being upgraded to handle the throughput a 14 million tons per annum and as a consequence, we are planning to process more stock pile material day this year.

This is the reason for a slightly lower production guidance compared to 22 eight.

And is in line with the forecast disclosed at our November Investor Day.

The team is continuing its work with the new government and the community to secure land for the new TSS.

The work associated with the TSA geotechnical and feasibility study is expected to be completed this year.

Invalid era, Pascua Lama district, a drilling program to test the link between the underlying deposits geology and metallurgy metallurgical characteristics is underway.

Around valid there are they are still a number of untested opportunities to expand the resource and reserve base.

Llama and valid era.

Drilling to extend that a day or a pit shell was also limited due to the impact of the pandemic and we expect to catch up with that during this summer in 2021.

And they all India region short term debt new Greenfields discovery.

Our strategy is to build a critical mass of smaller deposits to create a mining complex channel.

Per Boe of meeting our criteria.

As we reported earlier <unk> production was impacted by the pandemic related quarantine and movement restrictions imposed by the Argentine government.

This also temporarily.

<unk> demand has transitioned to the new phase six heap Leach facility, which is on track for completion.

At the end of the first half of this year.

As agreed upon with the government heap leach processing will be reduced during the transition impacting production.

However, the mine's performance is expected to improve in the second half of the.

After the new facility has been commissioned.

Darius connection to Chili's power grid at Pascua Lama should be completed by the end of this year as well, which will also reduce unit costs for the operation.

In Papua New Guinea, we have been engaging the government in discussions to seek a mutually acceptable way forward for the reopening of the poll Grub mine, which as you know is being threatened maintenance since the government refused to renew it.

Special mining lease in <unk>.

From 2020.

I am in fact speaking to you from the capital Port Moresby today, where the discussions are occurring.

If all goes well progress should reopen this year, but for the time being as I said in my introduction, we have excluded it from Barrick 2021 guidance.

Yeah.

The Africa and Middle East region has largely as expected driven.

Post merger repositioning and reinvigoration of Barrick.

It's five year plan remains intact.

Steady while costs and Capex coming down.

And there are plenty of opportunities to drive this performance beyond the time frame you see here.

Our immediate objective for that region is to either extend the life of mine of tongue on or replace its production after 'twenty two 'twenty three.

The Lula district in Mali is still out.

<unk> generates all of new ounces.

<unk> Carter again more than replace depleted reserves last year and there are big opportunities for more than both the Lula and garden cocktail mining leases.

Despite the political unrest in Mali, the complex exceeded the top end of its production guidance highlighting again, the importance of a strong in country partnerships and the agility of its management.

It's 10 year outlook is enhanced by the complex is third underground mine below the very profitable gold cutoff debt, which.

Which is on track to deliver its full first ore development tons in quarter two.

And studies for a potential underground mine at Lula three are progressing.

I exploration group is also making good progress on advancing the targets across in Senegal, an hour from Budgie joint venture.

In Cote d'ivoire.

Brownfields exploration has added three years to talk volume loss and a recent any.

Any 511 follow up.

With the potential to meet our criteria and eggs and extend the life of mine.

Situated 15.

Punk on the Mirth hie to target share.

For resource definition and resource reserve tranche.

And rivers.

Conversion.

The Cote d'ivoire remains an attractive destination because of its prospectively and relatively sophisticated infrastructure and.

And we continue our generative opportunities throughout the country with the aim of increasing new ground holidays.

For reasons beyond its control.

Non has led a troubled life, but it has always managed to be very profitable and last year.

It exceeded its rent budgeted production for the first time in its history.

It's the extended life of mine plan is being supported by additional exploration Optionality in exchange for a lower production profile at slightly higher costs.

Kibali grew its total reserves net of depletion for the success of <unk>.

Commodity was initially planned to progress two underground early mining, but the discovery of a series of significant open pit deposits has allowed us to gain processing flexibility by balancing the all feed over the minds change.

Flat.

The updated plan increases the mines gold production.

Two more than 750000 ounces.

Sustained throughout the current plan and given Kibali strong target pipeline likely beyond that.

Kibali produced near the top end of its guidance range in 'twenty 'twenty, while total cash costs and all in sustaining costs were at or below the bottom end of that range.

Kibali is the most highly automated underground mine in the Barrick group and a global leader in this field.

<unk> enables us to maximize its opportunities as well as the sufficiency.

It's three hydro power stations cheapest energy costs down and the recent introduction of a battery driven power performance system offers a further reduction of diesel generated power.

Okay.

Turning now to Tanzania.

We've achieved a great deal in this country since taking over the operations of the Acacia mines there.

On the exploration front.

Focus on getting a proper understanding of the geology is delivering exceptional results with north Mara increasing its mineral reserves net of depletion in 2020, while a substantial growth of resources indicates a significant potential force extending.

Its life of mine.

Operationally.

North Mara continues to improve in shaving production at the upper end of its guidance.

There's still a lot to do to realize this mine's full potential starting with the new oxygen plant and an upgrade of the cyclone cluster.

Recovery rates.

I believe once we brought north Barra and bullion Hulu into the latter half of the cost curve will be able to deliver another tier one complex.

Barrick's portfolio.

Exploration net full year, new new is producing some very encouraging results.

And as our understanding of that ore body improves it's becoming clear that itself will clause proportions with a measured and indicated resource of some $4 3 million ounces and an inferred resource of $8 3 million ounces.

And still lots to do to achieve profitable conversion to reserves.

The ramp up of the underground mining and processing it fully and Hulu.

Is on track and will continue through the first half of the reach.

Reaching steady state annualized production into 2022.

In the meantime, the feasibility study for an optimized mine plan is being progressed.

Our third Tanzanian mines Buzzworthy.

Schedule to into care and maintenance on its way to close out starting in the third quarter of this year.

[laughter] armed by the introduction of.

Onsite mineral resource management.

And an intensified focus on geology.

We've spent the two years since the merger improving our knowledge of the legacy book.

Barrick ore bodies.

We've made significant progress in developing life of mine optimizations.

Just on the high confidence geological models as.

As well as new operating plans.

<unk> profiles and costs for costs.

When excluding the impact of the disposal of Massawa, our total resources grew in 2020 as expected off the back of increasing inferred resources.

While 76% of reserves were replaced net of depletion.

This was also done while maintaining our above industry average.

Resource and reserve grade and is a testament to our focus on ore body quality, which differentiates us from the rest of our industry.

As our understanding of the ore bodies increases.

And as our drilling coverage improves.

The potential for resource conversion to reserves will grow.

But it will take some time.

For the group to reach the replacement levels of the Africa and Middle East region.

It's also worth noting that we have continued to clean up our portfolio with a focus on assets and opportunities that meet our specific strategic objectives and investment focus.

This is in line with our commitment to look to attract the best people to work with us to develop and mine the best assets in order to deliver long term sustainably profitable results.

Our 10 year guidance as an important tool to manage our sustainable profitability strategy.

This year's production.

As I've indicated will be impacted by the continued closure of program.

The heap leach transition that valid era.

But there are significant opportunities ahead for improvement and as I noted earlier, we have reason to believe at the <unk>.

Paul, but cobra issue could still be resolved positively.

The five year outlook.

For copper is also positive with all the trends as you see in this slide heading in the right direction.

Our copper portfolio made another significant contribution to the group's bottom line last year.

The other day advancement of Zelda Baas chloride Leach project was impacted by COVID-19 restrictions in Chile.

Lamar and in Zambia produced near the top end of its guidance and jumbo side exceeded its guidance.

Cost for the overall copper portfolio were better or at the bottom of the guidance ranges.

The change of copper reserves year on year, principally reflect depletion.

True bonding.

With La Manana operationally stable, there's significant exploration potential to grow resources and reserves on the property while extensions on load one net job all of Sayiid are progressing through peak pre feasibility and should suit edge to edge reserves.

Yes.

As many of you know <unk> has a colorful history, starting with its acquisition as part of the equinox deal and followed by years of operational disappointments.

What's that.

Africa and Middle East team has done with this asset is quite remarkable and summarized on this slide.

Through diligent operational Stuart ship focused on people.

<unk> sees cost discipline and sound geological and grade control practices.

This mine now boasts a long life and significant future cash flow generation potential.

Over the space of just two years production has increased by 23% costs have been reduced by 25%.

$3 50, copper price just a little below where it is today the mine could produce in excess of $250 million and free cash flow per annum for many years to come.

A real testimony to the Barrick operating philosophy.

The new Barrick is foundational objective.

To build a business capable of delivering the industry's best returns.

Two years on we've made considerable progress towards that goal.

The dividend has tripled cash.

Cash flows have increased to record levels.

And no one's crippling debt burden has been lifted.

These achievements were produced on the foundation of the <unk>.

Great asset base.

For purpose corporate structure, and a lean and agile leadership, who have more than lived up to our best people mantra.

We've had our fair of share challenges of course, and then some.

But we've overcome them.

We've found or created new opportunities to support our sustainable profitability strategy and.

And we've more than we're more than ready to exploit the openings that will be offered by the dynamics of the gold industry.

And finally.

As is customary.

Now as I look back on our performance since the merger.

While I firmly believe there is significant value left in our share price before any further improvements or growth prospects, we have already demonstrated clear outperformance.

As can be seen from this chart barrick share process outperformed for the past 30 months.

A shareholder and either Randgold Barrick at the time of the merger would now be some 30% ahead of the Gtx.

Importantly.

We are just at the beginning of an exciting and value creating journey.

Thank you everyone for listening and thank you for your attention.

Good spread of executives on the call to assist me any questions.

I'd be happy to pass back to the operator and take care of it.

Questions.

Thank you.

I'll now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you'll hear a tone acknowledging your request.

If youre using a speakerphone please pick up your handset before pressing any keys to withdraw your question. Please press Star then two we will pause for a moment as callers join the queue.

Our first question comes from Josh Wolfson of RBC capital markets. Please go ahead.

Good morning.

You know Mark I noticed there are a couple of headlines today on the topic of M&A and consolidation and the company share of reiterating its interest in being part of those discussions as well.

These on on copper could.

Could you sort of I guess update us with what the views are more specifically I guess in terms of Barrick.

One copper portfolio and then maybe how you look at these opportunities.

<unk> of the market today with there being a pretty material difference in how copper prices have performed versus versus gold.

Hi, Josh.

So I think the best way for me to answer that question, which is pretty broad as to take you back to two.

2000 debt.

A non qaeda and 11.

We're in a very similar price today than.

It was a it was a transformational period for Randgold resources at that time.

An increasing GAAP.

Gold price.

Notwithstanding that we did do a very critical deal right in the middle of a big Bull market in <unk>.

Bearing motto and ultimately led to the Kibali model today.

At the same time, we we had a big capital program, we were building out on tongue on as well and and and and so we use that opportunity not only to.

Expand our business, but also to pay down our debt and you've seen the same focus this time round.

We brought the debt down we have no net debt now and we've we've started a dividend policy already before the ball price started moving this is allowed us to return more to our shareholders as we did in in and net to 'twenty non chain in fact, it started in two.

Nate I said 18 year successive increase in.

And the dividend we paid despite the ups and downs of the gold price and Barrick is that at that point, we bought.

We are committed to returning about three 6% yield.

The share price a couple of days ago.

With the proposed 750 capital return that.

Debt, we shared with you today.

And at the same time, we're not.

Putting the company into any sort of debt and net debt.

We've got lots of liquidity with both anti exploration teams in all three regions very solid leadership I think we've demonstrated that our mineral resource management and planning capabilities are now well entrenched and how executive teams.

Led by our Catherine Mark in Belem.

I certainly can all take on an extra asset or.

So that's and then Asia Pacific roughly more than one Mark would say.

So we're well positioned we've got the strongest balance sheets in the industry is still growing.

And so now it's about.

Making sure that we deliver it and deliver that value to our shareholders in a proper and considered basis and again you know that.

And I would ask is.

In this.

The bull market that we find out.

And everyone. They aim for more and more money to be returned to the shareholders very few people investing in their own future.

Everyone harvesting and this is this is a cyclical business.

The near the top of the cycle.

And in it.

Managing this.

It requires some conservatism and and considered.

No no decisions and we think that we.

Certainly experienced in this.

We've got good memories, particularly Graham and I and the other executives in my team.

And so.

No.

There are lots of loss as you know Josh there are lots and lots of businesses.

Whether that's a couple of gold that just three years ago, certainly were on the watch list and suddenly they are you know theres no.

Our risk and stress anymore, and so with that comes opportunity.

As you know the discussions between Barrick and Randgold started in late 2015 and took some time to find a deal which rarely delivered real benefits for all the owners of both companies.

And so we're not everyone as you see in the market today everyone.

Every time, you wake up Theres a different opinion that's.

Considered to be the only opinion on where the markets are going to go and what's going to happen to gold and you know.

Where you should be putting your money.

And we are back.

Back in the great financial processes, we believe debt.

The.

Net short or near term to mid term.

Outlook on on global markets.

Not clear.

We believe that the.

Uh huh.

<unk>.

Technical support for a stronger gold price is still very well embedded in the market.

And we certainly haven't seen the consequence of this unprecedented quantitative easing.

That we've witnessed in the last nine months orders of magnitude of what we saw over the five year plan. So that's that's first of all the way we frame.

Our business.

Now you look at how your growth the best way to grow in times like this of course is organically and one of the things that I hope I shared with you.

Through this presentation is every single core assets and Barrick has real upside that you can demonstrate.

Both and in particular, most of them new discoveries as well as brownfields extensions.

So that's that's a core component of our business and of course, they are and gain to be further consolidation.

<unk> and <unk> and we believe that.

The.

Challenge of doing those transactions is is going to not only be commercial but also the ability to be able to deliver.

More alive.

Alarmed more modern.

Comfort to the onus of long term owners of these.

Companies.

And so.

Again, I started out with the sharing of our ESG strategy, which I believe that ultimately is going to become a key driver.

No one's ability to transact going forward.

Coming to your debt.

That's gold side and that's our core business.

On the copper side.

Again, we've demonstrated that we are well.

We're capable of managing and delivering.

Real value and in the copper space.

Lamont is got a long history of book performance, we've been able to rebuild it.

And position it and we've always said our focus on copper is first prize the copper comes with gold and yoga.

Gold copper geological to range, and secondly that we would pursue copper assets, where they are located in countries, where we have <unk>.

And can demonstrate a competitive advantage over the traditional copper miners.

We believe that day.

That sort.

Sort of Central African copper provinces.

<unk> offers that opportunity for us at the same time that down in South America, there's lots of copper potential that comes with gold and the gold copper porphyry.

And Wow exploration teams often to the Asia Pacific also pursuing opportunities where again net debt Geological Association is clear.

We're not I think the market responds.

Is that just because we talk about growth and we've talked about the importance and significance of Av.

For Barrick to remain relevant in the industry it needs to be broadened into copper as being that we can sort of go out there and just buy the first copper asset or company regardless of.

The opportunity to deliver value to <unk>.

Both the target owners.

Owners as well as so.

Yeah, we're not going to do that.

Walk this.

With me for a long time Josh.

We got too many checks and balances and my executive team to go out there and do something stupid.

So watch this space give us Tom will keep building our business in a considered way.

Great. Thank you very much.

Our next question comes from Mike Parkin of National Bank. Please go ahead.

Hi, guys. Thanks for taking my question. One I had was you know we're seeing quite a core cold snap come down through the U S. I was wondering if theres been any negative impact to the Nevada gold mines.

Operations do a cold or is that anything that you would expect to maybe drive a bit of a soft Q1 or something that would probably bounce back with the resumption of kind of normal temperatures.

Yeah, Mark I would just say that where operations are located in Nevada.

Leopard nickels installment, regardless of whether they cold snaps, we had noticed a cold snap was just call. Yes, we look forward to it.

Sunny day.

So it's a bit like West Africa. When you have three months of range, where you get one major dumped on you.

You know, we don't see it appropriate to use where that to explain why we called run our bonds.

Our team is well equipped to manage.

In Northern Nevada, just like we are in the Andes in South America.

You definitely wouldn't see anyone using it as an excuse.

Okay and one last.

A question on <unk>.

Covid do you see any potential to implement a.

Company kind of sponsored vaccine clinic to get vaccines to your employees at a faster rate than government programs or are you looking at it to just leave it with the governments of your respective host countries.

Go that route.

Well.

To do this.

<unk> partner with our host countries.

In the case of Nevada state.

On combating COVID-19 and its impact and.

Bought two operations, we now have.

Covid.

Yeah.

Partnership.

Led.

PCR laboratories, which support.

Protocols and net free Kevin Turner.

Accurate tests.

Couple of hours.

And that's been very helpful. We've got two more true ready rollout.

Yes.

The laboratory and Tanzania, which we're working on it and one in Zambia.

Just put one into.

Ambler as well.

So to the town of marathon.

So that's you know.

And again in all our countries. We are very much part of the Covid Task Force and.

Our senior executives of <unk>.

Being included in the.

Vaccine logistics and management structures in our various regions.

And coast counties.

Or.

Provinces.

And Kathryn is very much part of.

Debt initiative in Canada as well as in.

Nevada, as as Greg and immediate part of that.

Alco any market region.

In northern Nevada and NAV.

Africa OE part of the whole African Union initiative to source and and support.

The rollout of vaccines, it's a little more complicated day.

But there's been some movement recently and we've seen the first Johnson and Johnson vaccines coming into South Africa, and we look forward to be able to manage debt.

And to the across the nations across the countries in which we operate in Africa, South America, where we were early partners with the Dominican Republic.

Setting up structures to purchase in order of vaccines and get them in to the country. We've got a very strong relationship.

Worked extremely well, it's one of our most responsive.

But.

Initiatives has been as you know.

Dominican Republic is.

Being a holiday destination.

It's very hard in the early days of Covid and then we are working again with the Argentinian Julian government on.

Sourcing vaccines.

Again, all the emerging and developing world are slightly behind.

<unk>.

<unk> developed.

Economies as far as rolling out that vaccine is absolutely critical for the.

Okay.

Okay.

To manage a global solution on the vaccine rollout.

No. We are part of it at this stage it is not possible for private enterprises to purchase vaccines themselves, but we.

We are partnering with the without host countries and already.

For instance, in Nevada, we're talking about.

Uh huh.

Some of the vaccines to the the critical support staff within the mining industry as well as other industries.

It's a very collaborative initiative in.

Well I mean, it's been an impressive partnership.

Cross all 13 of our host countries.

<unk>.

I'm optimistic.

By bringing this.

Pandemic under control in the in the medium term, it's definitely not going to happen as quickly as everyone would have locked and so it's it's very important we all continue to exercise.

Discipline in.

In respect of protocols of.

Social distancing et cetera until such time as we get a.

Herd immunity and changed in our populations.

Thanks, Mark and all the best in the negotiations with per GAAP.

Thanks, Mike.

Our next question comes from Danielle <unk> of Bernstein. Please go ahead.

Great. Thank you. My first question is on your climate targets say, they seem significantly more ambitious than the stats at the Investor day, and say could you give us any color on specific projects or specific actions that you're planning, which will lead to those higher and.

Reductions in greenhouse gases.

Hello, Daniel.

We are ambitious I mean, we are very clear that our target is.

To achieve a 30% reduction by 2030 and.

I think the net zero target out to 2015 is a bit academic at the moment, because I don't think well I know that there is no gold mining company that goes to <unk> 50 in the current plan.

But.

So important is that.

We I and my team.

Large team now have always been absolutely clear that we manage our business on tangible plans.

There is a target everyone's.

Being under pressure to accept that day targeting ex.

X Y and Z that doesn't mean anything if you don't have a real plan against which you can measure yourself and so we started out with a plan to deliver a 10% reduction last year last year and our 2019.

And the ability to report we've now increased debt to 15.

Per cent reduction we've got a serious.

Every single one of our operations has got a very specific.

Greenhouse gas strategy.

Whether it's a valid narrow area rolling out the connection with the two the Chilean power grid, which is the.

<unk> has more sustainable.

Power component did you add any other.

Power utility.

No problem.

No.

And so that that really does takeaway significant emissions and also drops out costs materially.

Download era and the Dominican Republic, we are the leader in that country with a conversion from maybe feel to natural gas driving big turbines very efficient very low emissions and.

Not really.

At PV, but also for the nation.

In Nevada, we.

Reported with the joint venture.

The Newmont coal power station and we are already well down the road on converting that to.

Natural gas and also we are <unk>.

Busy permitting at 200 megawatt.

<unk> power station, which will be linked to that.

Natural gas facility and we've got a second one as well.

And Kibali, which is our youngest mine in the group debt.

We built on the back of Hydro power installations, and recently as I mentioned in my speech, we've added a big battery to that and we've learned so much about how to form a grid.

Many grid.

In remote and a remote place like the jungle in DRC and that battery technology is proved to be invaluable and we are not looking at changing around the the hull.

Construction of our grid.

Using the battery is the formation to form the grid and the power the hydro power to actually keep the batteries charged.

And and <unk>.

Kibali is unique in that it's got a big hoist.

And it's constantly drawing large amounts of power from the grid.

What we've learned there we've just commissioned a 20 megawatt solar power station Marella.

In Western Mali, and we know that.

An opportunity too.

Install similar battery technology.

Sorry, non Marina and Lula, Oman, Qatar and and be able to form the grid and use the solar to keep those batteries, Todd and therefore do away with a lot more of the.

Hum.

Diesel and heavy fuel pod component of our power station there.

And then the opportunities in.

Further as natural gas power and there's more and more opportunities now as people start investing in hydro.

In Papua New Guinea, which has got some very exciting potential thoughtful harddrive comp, particularly.

From the pilots. So you know when you walk through our portfolio I'm, just giving you a quick brush of water and energy.

You can't just say I'm going to reduce power you've got about a plan to do it and and one of the things that Barrick is investing it is that technology to ensure that the next year bond we bolt is even more.

Efficiency bolt interest as far as generation guys compared to for instance, your body.

So we're learning every day and I believe that if we continue with that focus in every single general manager a senior executive and Barrick is in one of this commitment to our stakeholders.

I hope that answers your question.

That's very useful color. Thank you.

And just one more from me on Tanzania, you talk about making north Mara possibly a tier one mine.

And I'm trying to conceptualize how that happens is is it the case that some of the geological upside results in a different way of operating those mines like in a broader context, how should I be thinking about that.

300000 ounces out of those more and more then.

250000 ounces.

Fully in Hulu add them together that's 550000.

North Mara has a moderate grade mine.

But he is a high grade mine, we drive the cost down to the bottom half of the cost curve and you've got a Tijuana complex.

Combined in the country and they both have more than 10 years' loss substantially more than 10 years.

So that's really our focus and.

And what what North Mara has got a bit of a way to get to that low end of the cost curve, but we'll get it there because it's got so much upside we still got to lift the production fully.

Significantly by the grade of that ore body.

Great. That's helpful. Thank you.

Our next question comes from Mike <unk> of Bank of America. Please go ahead.

Oh, Hi, Mark I hope, all is well and they're not face a cold snap in port Moresby.

Just moving.

Moving to I have a question I handle all day.

Intrigued by the steady state 1.9 million tonnes per annum production.

Well what are they how much.

Tons will come from each of the mining fronts to get to that production level.

And what would that mean to the mine production.

Right now.

My accounts again, no chance of a cold snap.

What most be I can assure you.

Yes.

What about the causes to again is when you turn the air conditioner down to about six data center growth.

B.

Timna as you know our outlook. This year is about 210000 ounces.

And the plan is to get it up to about 250000 ounces.

From underground.

And that's why we need that extra access and the <unk> zone, which we're developing now and.

I mean, you can do the math just work it back.

But.

It's rarely.

It said too.

Our first price would be to get get it up to 250000 ounces.

As we improve the infrastructure the hoisting.

Ventilation one of the big challenges is getting a lot of the well.

Waste out of the mine to improve.

Logistics and all movement.

Right now all of that is constraining, we still got a developed.

Lung.

How open stope opportunities.

We got to improve our backfill.

And we've still got quite a bit of a remnant mining that we're doing in this next year and perhaps the year.

Call it to 2022.

And at the same time, we're drilling and building debt.

Reserve base to support.

Plus 10 year, plus 250000 ounce producer, which makes it a substantial Canadian gold box.

Okay, well, thank you and good luck there.

You know that Manuel Dan Schumacher.

Oh.

Sorry on 19.

80.

88 with Corona.

That's it.

And it's still got legs.

Yes, it does.

[laughter].

Yeah.

Our next question comes from Anita Soni from CIBC World markets. Please go ahead.

Good morning.

So my question Yeah.

With regards to reserve replacement, so I saw some strong reserve replacement debt.

Pretty good grades, but I'm going to ask you about the question.

Areas like a little bit.

Particularly at Nevada Gold mines.

And you guys had mentioned that it's going to take a few years to shoot to fully see the results.

To get it up to where you are in Africa in terms of reserve replacement. So can you give us a little bit of color on the plans forward in the next year or two in terms of them getting that.

Those grades in those ounces backup.

Yeah, So in Asia.

Yes, just trying to explain I'm not sure about what you're talking about there because you know the.

If you look at.

In North America, we went from 31 million ounces in 'twenty.

And non gene. This is reserves now at 268 grams, a tonne to 29 million ounces at two eight grams a tonne so yes.

The if you look at.

Africa of course, we've grown.

Certainly on the back of the Lula North Dakota.

And Kibali at North Mara replacement.

Tongue on is a tougher nut to crack because it isn't the plot.

And bullion, who the big growth will come.

As we complete the underground feasibility study.

So and no small North America is in good shape.

It's first of all you got to Boulder.

Resource profile.

We are very disciplined on the grade.

And so we.

We've done that and hopefully Anita you would've seen in my presentation knee pointing to further resource expansion and you've got a bold debt front ahead of the mining faces.

In the inventory first then and then third ultimately it gets into measured and indicated which results in reserve.

And it's.

It's going to take some time.

76% replacement right now with a with more than 100% replacement on the resource category.

Bodes well for us too.

To get all of our assets.

Delivering reserve replacement over time, and now I'll just take you through it as I pointed out PV is a simple case of significant reserve growth.

Dara, we didn't get the drilling done we wanted to in 2020 because of the restrictions of Covid. So a lot of that drilling has been rolled over to this year and.

And again, we expect to make.

Meg.

Significant process progress.

Progress in the <unk> the full quarter's extension of this.

Current value there are puts.

And then yes.

It pointed to north level, some significant upside potential Rita K, we busy drilling out we've got the lower part of Rita K now coming into the mine plan.

Our reserve conversion Napa part, we're still dealing with the water table and making sure that it's accessible which means you can bank debt.

We've got some into a mine plan and reserve, but still quite a lot more outstanding.

There's still work to do and.

Both.

Turquoise ridge underground as well as our twin creeks.

And then.

Cortes.

As we develop and deliver on the feasibility study for gold rush, you'll see some significant.

Answer is flying into that complex.

I'm really very comfortable about where we are as far as understanding our geology and.

Being able to with some.

When I go to the minds now is like I got to get in.

Kibali and Lula.

The MRM team have a plan to combat.

It's part of our business.

And.

I mean, we even added ounces.

Just before the close.

And that's got some significant upside and that's what comes with tier one assets.

I hope that gives you some comfort.

Then to debt.

And the most important thing is that the quality of our resource stroke reserve.

Is.

Is still intact and we haven't allowed.

Anything to deteriorate on the back of a higher gold price we've kept the 1200 discipline.

Yeah, No I didn't notice the grades were maintained or if not improved debt most of the assets or is it just drilling into some of the long Canyon Phoenix Carlin and took place that didn't quite.

Keep pace with the rest of the assets, but thanks for the explanation.

Okay.

Worried about long Canyon remember, we've stalled long canyon as we as we.

Re Tata permitting.

And so that's that's looking for a second phase expansion of the life of mine and that would also impact our reserves at the moment, we don't have a parameter it's not coming into the reserve.

What part of long Canyon.

Okay, and then my second and final question I guess is a long one but.

You've talked about industry consolidation in the gold space and I just wanted to understand what exactly it is debt.

Catches your eye so much.

With the with the assets that are out there and if you could give us some parameters on what exactly you're looking for and how that competes with your internal projects.

Okay.

I guess, the best way is to wind back everything too.

2017.

Early 2018.

And you and your portfolio of cash.

Companies, you're covering a lot of them.

Very stressed.

And then suddenly everything is terrific.

With a higher gold price that doesn't change the long term.

The ability of our industry and then we've got a couple of.

A single asset companies that have struggled to deliver against their feasibility study, but it's being kept alive by.

Higher gold price.

And.

Our industry is right now at a place where it's not worried about its future and and and I point. This to both the fund managers who are keeping demanding.

Cash returns, it's not worrying about how you package.

Use this higher gold price to package.

Repackage, our industry, which is required to create a relevant industry as.

Allocation of capital becomes more sort of larger and more mature.

Clumsy.

Going forward.

The findings are just getting bigger and bigger net and I need that.

The Dol to be move more.

And so and.

At the same time, we've got management teams that are just hanging on to this opportunity using the COVID-19 and the higher gold price.

Revenge.

The conversation around consolidation.

So, but it's not going to be like that forever. We've.

Seeing the market respond.

On the softening gold price will be at that is way above the sort of average.

And that's why it's important for barrick to be to have the strength financial and management bench strength to be able to force some of these.

Opportunities.

But the criteria we've been very clear.

Yes, we look at two categories of opportunities tier, one which is plus 500000 ounces.

At the bottom of the cost curve within the bottom of the cost per.

And tier two which is sort of above 250000 ounces.

At the bottom half of the cost per bed.

And both having at least 10 year life of mine potential so yes.

And in times like this as I touched on in my presentation.

As.

Mato acquisition, we made in 2000 and non in the middle of the crisis very solid.

Well structured bull market and the gold.

And the gold price.

And we did that acquisition it was a world class acquisition when you read a trough.

<unk> has delivered.

This value to our business.

There is.

The key is not to buy.

And it's a conversation that should be had because it is sucking money out of the gold industry doesn't do anyone any favors.

But this industry is.

It was very precarious and 2017 2018, it hasnt changed.

It's just you can't see it because of the higher margins.

And so.

Yeah, I think it's important that we get them and that's why I keep bashing that drop.

Or beating that drum and net.

I think we need to do and notwithstanding that as <unk> seen Barrick has really invested in it.

Organic opportunities, both brown and Greenfields and we'll continue to do that as well.

Okay. Thank you and just wanted to close out by congratulating you on your cost control. Those are that's a pretty good results considering the past year and in the year going forward.

Thank you.

Thank you I.

I appreciate it that's coming from you.

Our next question comes from Matthew Murphy of Barclays. Please go ahead.

Hi, there.

Just wondering if youre still expecting to formalize a dividend payout policy.

This year I thought it might have some with this quarter or is it something you're looking to do early this year.

Yeah Yeah.

I think it's important I did touch on this in a manner.

On Thursday.

A lot of debate at the board and amongst our executive team.

How we manage this.

Again, if you went back to 2008 non intent.

While we manage that return of capital to shareholders and our dividend.

Strategy.

Very similar this time around.

We have no visibility of how the.

Short to medium term.

Economy, or a market looks like and I think.

We definitely I mean, we realized non core assets. We believe it's important to return makes logical sense to return that.

But part of that to our shareholders.

He has done my whole career.

We've used the cash generated by our business to bring down our net debt and cover ourselves.

And so that we are completely independent.

Of the capital markets and are able to run our business without interference.

That's done and I'm very happy with that we will continue to build the cash portion of.

Our balance sheet through this year, the gold price stays above 1700.

And so and then.

And we believe that.

This whole unprecedented scenario is is unclear and extremely dynamic and I'm pretty.

Confident to be able to bet you that the current analyst outlook on on what it's going to look like in 12 months time is all wrong.

And so.

Lord and debate without management team.

Landed on the fact that it's better to return this its a significant return.

Added to our non sensor cost quarter delivers about a three 6% yield.

Current.

Share process.

Actually a bit higher than today.

And then we'll reassess things next year, where I'm sure things there'll be a lot clear to everyone.

Okay. Thank you.

There are no more questions from the conference call.

This concludes today, thank you very much.

Alright. Thank you I'd, just like to say to everyone. Thank you very much for making the time today.

We're pleased that we got through this presentation a lot of people put enormous amount of effort into the communications and everyone was.

Really concerned that we might break out communications through this process.

Thanks to everyone that Korea, but and then again, thank you for making the time to join US and we'll speak to you soon.

This concludes today's conference call.

Should you have additional questions. Please contact the Barrick Investor Relations Department you May now disconnect. Your lines. Thank you for participating and have a pleasant day.

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