Q1 2021 Barrick Gold Corp Earnings Call
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Ladies and gentlemen, thank you for standing by this is the conference operator welcome to the Barrick 2021 first 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 will.
Other question. Please press star followed by one on your telephone keypad at any time during the conference should you need the operator assistance. Please press star and zero as a reminder, this conference call is being recorded and the replay will be available on Barrick's website. Later today may 15 two.
And in 'twenty, one I would now like to turn you over to Mark Bristow Chief Executive Officer. Please go ahead Sir.
Thank you very much and good morning, and good afternoon, ladies and gentlemen, and welcome to Barrick's quarter one results presentation.
What's the wild past 12 months it has been.
You will recall it was Q1 'twenty 'twenty when we held our first all of the actual results presentation exactly a year ago.
When we announced the they have between Barrick and Randgold back and came back 28, and we said that its rationale was to combine the industry's best assets with its best manages.
The board its most valued gold business.
It was and remains our long term strategy.
But in the relatively short period of time as I'll show you. Today again, we have also achieved a long list of established accomplishments.
Most recently and the Cortez still heavily impacted by COVID-19, we met our production guidance maintained strong free cash flow and increased our net cash by $500 million.
In spite of and advanced tax payment of $72 million to the state of Nevada.
The quarterly dividend has been increased three fold since the merger announcement and this year will be topped by a 70 750 million return of capital distribution more than doubling the payout for the year on a per share base.
Yes.
Exploration refocused and stepped up since the merger is pumping exciting prospects and job pop line from multiple targets across the group.
And major growth projects, such as the Pueblo Viejo expansion and the third shaft at Turquoise Ridge.
Making good progress.
And at Pole Gras.
We are on track to resume operations later this year following a binding framework agreement with the government of Papua New Guinea.
I refer you to this cautionary statement, which is also available on our website should anyone wish to study it in more detail.
Our business.
Our businesses have the over long period of time and the social license to operate and this has served us well at the time when ESG has become a key investment criterion.
And our sustainability report for 2019, we published the industry's first ESG scorecard rating ourselves against our peers and the requirements of the G. R. A sustainability reporting standards.
The sustainability report for 'twenty, and 'twenty released a few weeks ago, and which now also reflects the checklist of the sustainability accounting standards Board shows that we have made progress against almost all key ESG metrics.
We have also advanced our admission reduction target from 10% to set your percent by 'twenty sachi with the ultimate aim of achieving net zero of about 2050.
The principles behind the ESG have long being practiced by Barrick two legacy companies and are deeply embedded and now every facet of the business.
We believe that a good company should also be of good neighbour.
Which is why we invest heavily and community development projects guided by the fully functional community development committees. We now have at all of our lives.
We also prioritized local employment.
Last year, 97% of our work force will host country Nationals and.
And we give rev per a preference to local contractors and suppliers with whom we spent more than $4 billion in 2020.
We take great care to manage and minimize our environmental impact and all of the operational sites have now been certified to the ISO 14001 global best practice standard.
Still on the social and governance front, we are addressing the check and human rights history of our Tanzania and mines through audits and training conducted by external experts.
These are the highlights from the 'twenty 'twenty sustainability report.
It's a KOL barrick philosophy that the benefits created by our operations should be shed.
Equity I believe with all stakeholders, particularly.
The host Karen the present communities, who all of the news of the resources we mined.
As we have already seen and ads and yeah and outside of New Guinea.
Governments of developing countries are demanding of biggest loss of ownership.
Barrick's onto the answer to this is to work to increase the size of the pie benefiting all.
Our sharp focus on safety continued to drive performance improvement and our total recordable injury rate was again reduced.
Latin America has done, particularly well on the safety front, but North America, and Africa, and the Middle East still have some work to do.
And number of L mind, and several radius received the ASO 45000 did widen and certification and the rest are on track to achieve this compliance by the end of this year.
We're also not easing up on our COVID-19 controls and we've already started vaccinating the workforces at Nevada Gold mines.
The blow VFR and jumbo Sayiid.
Our group wide vaccination plan is currently in the works.
There was zero of highly high severity environmental incidents in the group last year or during quarter. One of this year, we are particularly proud of our water recycling and reuse you reuse programs, which and the first quarter of 2021.
<unk> and 84% efficiency rate of hit of about 80% target.
Carbon emissions continued to decrease in line with plan.
And we've been extending our environmental reach into the world and there's areas about African host countries with some important natural assets are under threat.
In terms of of recent agreement with the government of Mali, we are assisting with the rehabilitation of the neglected fee net reserve.
Of UNESCO Biosphere sought.
And the Democratic Republic of Congo, we support the garage the National Park home to the country's largest elephant population as well as the critically critically endangered core defend giraffe.
As part of our support we spun said elephant tracking program and since 20 September 'twenty non gene no incidence of elephant Tai Chi have been recorded which is of significant achievement in this part of the world.
These are the highlights of the quarter.
Our tier one assets again produced solid performances with leading margins getting us off to a strong start to the and putting us on track to achieve our annual production target.
And particularly notable feature was the 31% increase and copper revenues due to higher copper prices with continued strict control cost control.
As guided.
The quarter, one results were softer for a range of operational region reasons, but we are forecasting a much stronger second half driven by mine sequencing and planned maintenance at Nevada Gold mines.
And the commissioning of a new Leach pad valley at Valla Dara.
The ramp up of underground operations at Poly and Hulu.
And higher grades for cost for the water.
The strong free cash flow and the increase of net cash and all the highlights of the quarter.
The sustainable quarterly dividend, coupled with the 750 million return of capital represent and industry, leading return to our shareholders.
And average lower gold price, which was $100 per ounce less than in the previous quarter did however impact revenue, but the copper operations benefited from the much higher copper price.
Over now to operations and we begin with the North American region.
Which is off to a good start to the and on track to meet its annual guidance of 2.322 point for 5 million ounces of gold unearned attributable basis.
Nevada is barrick's value foundation with three of our tier one mines, leading margins a strong upper breaking cash flow.
And the solid net cash position.
The joint venture has a good grip on its geological inventory with the brownfields and Greenfields exploration programs up and running and already paying dividends.
Nevada is probably the world's most prospect of gold district, and major opportunities are taking shape around our core sites at call and Cortez and turquoise Ridge.
The potential to grow resources and add value from this asset base is very significant.
Production at our North American flagship call and mine was down because higher carbonaceous or had to be blended with lower grade stockpile feed which affected roaster feed grade.
Cost sweat Nevertheless, well contained both call and roasters will be shut down for the annual maintenance during the second quarter. That's this quarter and that's partially why we are forecasting a better second half performance.
At Carlin.
We are looking to extend the known ore body deposits.
Work on the North call and trained is targeting high value breccia bodies open at depth with a view to enhancing the life of mine as well as making new discoveries.
Levo.
Continued to yield the robust high grade results and recently identified controls are opening up new peripheral targets.
Two of emerging high grade zones have been identified within the broad mineralized horizon of.
Evaluation of the node and legal areas full potential has been accelerated and risk resource conversion is in progress.
We expect a maiden resource for the year and and are confident that total continued to grow.
We now move to Cortez, where production was impacted by re sequencing as a result of the previously reported geotechnical event, which delayed stacking at the heap leach pad and affected the feed blend to the oxide mol.
The mine and expect a stronger second half of the year sales to a higher contribution of fresh ore from pop line as mining day ramps up.
At Robinson and the Cortez District, we are also converting improved geological knowledge into growth opportunities.
Step out drilling 300 meters beyond the existing resource blocks suggest there's considerable near surface upsides that could lead to additional discoveries.
And the validates my personal belief of the potential of this area.
We're also looking at pop line and old tier one asset immediately adjacent to Robinson, which could provide a significant addition to cortez is life of mine.
And at Gold Rush.
The exploration D cards have now intersected the ore body with positive results.
Well it meant is accessing all for the initial bulk metallurgical campaigns and heading north towards towards the first vent shaft position.
We're considering where the two access for mile from surface or bot and I'm, sorry, we're considering where the to assess for mile from surface ore body underground from gold rush, which is our preferred option.
For the all based on what we know provides real potential to add two gold rushes value in many ways.
Not least of all for bile is of higher grade resource.
And with its inclusion at centers the main access development, allowing better utilization of the invested capital.
At Turquoise Ridge, we had a better quarter with steady production and slightly better grades from the twin creeks open pit.
Total cash cost were well within guidance and construction of the third shaft, the bottlenecks, the hoisting and ventilation constraints, which will allow for higher underground production.
And it remains within budget, that's the turquoise number the twin of the AR number three shaft. It remains within budget and on schedule for commissioning in late 'twenty 'twenty two.
We have at Turquoise ridge made considerable geological progress.
Improved understanding of the controls of mineralization has provided a solid foundation for mine design and planning and as indicated a significant potential for a new high grade underground operation.
If as anticipated turquoise ridge and twin creeks are proved to be geologically connected it could add significant high quality ounces to this project the complex.
And still in Nevada <unk>.
<unk> net Phoenix was consistent with the previous quarter and cost was significantly lower.
Due to increased copper brought by product credits and I would just point out that.
It's only at Phoenix way, we allocate.
Allocate credits for the copper back to the.
All in sustaining cost per ounce of gold.
And with total cash costs of $79 per ounce for the quarter.
And long Canyon and continued to boasts some of the best margins in the industry.
Long Canyon's mine life extension project is being reviewed as we shared with you last quarter and we are planning now having reviewed it to restart the permitting process for phase two.
Further north in Canada.
<unk> had a challenging quarter as it continues to transition to an underground only operation with the closure of the open pits and late 2020.
Strong production is expected and the second half of the year and the mine remains on track to meet its annual guidance and.
And Meanwhile, we continue to position hemlo as a potential tier two asset.
Mining from its new portal is expected to begin in the latter half of 2021 and this will provide a third mining front and increasing flexibility to the mine.
And tableau the geologists have done a great job and the identification of significant new extensions outside of the mine plan is expected to speed up its journey to tier two status.
So back to the United States, where adult and joint venture with Nova Golden and Alaska has commenced its 2021 drill program of 20000 meters. The.
This program is aimed at testing the updated geological model and all controls and to obtain additional geotechnical and Geo metallurgical data.
This will support the completion of the updated geological and resource and genetic models.
Two of which we will decide on the next steps in this project's progression.
And so now we move to move South the to our Latin American and Asia Pacific Region, where we continued to earn day intensify our focus on generative exploration and the new business.
The region also of houses two of our key projects.
Pablo via hose plant and tailings expansion and valid there is transition to a new heap Leach facility.
We are guiding annual attributable production of 600 to 660000 ounces and for this moment, we also not including a poll Gras and this guidance.
Pueblo Viejo is processing lower grades in line with plan as it advances development of its plant and tailings expansion project designed to extend its life to beyond 2040.
Despite the lower grades it's cost for the quarter were well below the bottom end of guidance confirming its status as the Lee leading low cost T. L. One line.
The expansion project remains on track and Dod budget and the Sag Mill is now on routes to the sought for.
Earth works for the plants have been completed.
And it has formally engaged with government and other stakeholders to secure land for the news day, the tailings storage facility.
The integration of the Pueblo Viejo District structural Fame work with improved geological knowledge has revealed the new targets, particularly exciting is the gold mineralization net zambrano <unk>.
And we're ongoing work had the has confirmed the multi kilometer strike potential.
Drilling is planned to start as soon as the permits have been approved for this project.
As I pointed out last quarter Valla Darrow was the only Barrick mine wave production was seriously impacted by the pandemic lockdown in 2020 and Argentina.
Net loss Cortez bounced back with a strong all round performance well ahead of plan.
The mine is currently running down the inventory from its old heap Leach facility, while it moves to its new phase six heap Leach pad.
Schedule and we're scheduling the commissioning of this phase six by the end of the second quarter. That's this quarter.
The connection to the Chilean power grid via Pascua Lama was delayed also by the pandemic and remain state to be completed by the end of this year.
And once we connect this and effectively connect to the Chilean power grid will see a reduction both invalid areas greenhouse gas emissions.
As well as operating cost.
The pandemic also affected the district's exploration progress.
But these are getting back the programs are now getting back on track Lama and the area of between valid Dara and Lama are specially drilled and poorly understood. So still lots to do to define the full potential of this region.
Three near mine targets are being drilled tested as we speak and a new generation of Standalone targets are being evaluated for the next season.
By way of the example.
And at Lama East two drill holes have confirmed significant extensions 300 meters beyond the current resource.
Both of the appear to have encountered over 200 meters of mineralization starting near the surface.
S. A's are pending but the initial chip Saab polls have returned very encouraging grades.
And further afield, we continue exploring our holdings along the Andean trend, where we have identified 11 areas of interest.
We are currently evaluating multiple new targets more marked by the yellow stars on this map.
You would have seen them.
The last month's announcement that the government of Papua New Guinea, and Barrick, New Guinea limited have agreed on a partnership for the future ownership and operation of Cobra, which has been on care and maintenance since this time last year.
The Creek key principles of the agreement are listed here on the slide.
And I believe it's a fair deal, which represents a true win win outcome for both parties.
The underlying implementation of agreements are in progress and the mine will be restarted when needs of being finalized.
If all goes well this could be by the end of this year.
So all of it now to Africa, and the Middle East home to two tier one mines and two copper mines.
And another strong quarter means the region is well positioned to achieve its annual attributable guidance of between one and a half and 1.6 million ounces of gold and 300, and 'twenty, two and 360 million pounds of copper.
The Africa and Middle East region boasts enormous prospective of T supporting the potential to further add to the already robust tenure of plans.
And the Lula God and carve of gun Carter this quarter delivered another stellar performance, beating its budget and boosting production by 25% quarter on quarter on the back of higher grades and increased throughput.
The complex continues to invest and its future and development of its third underground mine at current Carter is well underway.
Studies are also continuing to advance of potential force underground mine at Lula, three and a pity expansion at Julia South.
And Meanwhile.
And the Yulia underground system continues to expand as shown on this slide through the extension of its high grade zone to the south.
The Lula district has been one of the world's most prolific producers of world class gold discoveries.
And we are confident that it still has the potential for more of.
It straddles molly's border with Senegal, where we are finding interesting and extended new styles of mineralization.
Particularly in Kb waste and soya and the band by G permit.
And then on the Mali side the.
There is a potential new discovery at the earlier ridge, while drilling beneath the Lula one ore body has returned exciting intercepts. In addition, there are at least three major structures immediately south of gone Carter.
The extensive anomalism points to the potential for further opportunities.
As you know last quarter, we repositioned.
Togo and to extend its life by reducing its throughput and the quarter one results reflect that transition.
We're also looking at supporting the mine life extension through Brownfields exploration onset of lot target as this map shows the exploration team has identified a number of these targets each for the potential of increasing tongue Bond's life of mine and.
And what's important is quite of few of these priority targets all within 10 kilometers of the tongue law and more.
Now of across the East Africa, where Kibali is Q1 production remained in line with plan.
And as it keeps on track to achieve its annual guidance.
Recently, a new government has taken office and the D. R. C and we spent some time was this the new government appointees, the new cabinet appointees, just 10 days ago, and engaging with them and and we have always had as you know a strong relationship with the Congolese.
Government and and and I think.
Now after seven months of really no.
Real cabinet.
And to speak of we now have a fully and.
And pointed and the responsible and accountable cabinets and supported by both the parliamentary and Senate majorities and and we are confident that we will be able to address.
Some of the outstanding issues that have been on the table for some time now, including the movement the free movement of cash from the country.
At Kibali.
Our reserve replacement program targeting of third successive year of growth continues with quite some success drilling on the world class K C. D ore body has confirmed alteration and mineralization over 500 meters down plunge of.
The us drilling and the existing resource limits on all loads and.
K C. D is all about the cigars, the plunge down and and they have a high level of hawk number of ounces per vertical meter because of the grade.
This work supports the extension of the K C D system, and bodes very well for our ability to continue replacing depletion at kibali for the foreseeable future.
Likewise exploration.
The K Z trained has delivered a number of open pits, which will increase flexibility at the mainly underground kibali by balancing the all feed with more open pit to bowl material.
The exploration pipeline at Kibali continues to grow and it is currently led by and the column that target.
Moving further east now to Tanzania, and North Mara where north Mara had a good quarter on the back of the improved underground productivity and higher grades.
We still have some work to do on the plant upgrade and our exploration team is looking at building up the life of mine.
Continued work on the GAAP corner system is indicating potential lateral and down dip extensions to the ore bodies, which could provide substantial resource growth resource growth to extend the life of the North Mara mine.
And the ramp up of the underground mining and processing operations at Poly and Hulu is making very good progress towards achieving steady state production.
The drill program and the high grade deep West Zone continues to produce positive results.
So the little bit about our copper production.
Copper has been one of the top performing commodities over the past 12 months with the metal recently breaching $10000 per ton for the first time in over 10 years.
The fundamentals for copper.
Copper remain strong and as you know I've spoken about copper for the last two years and we see our own copper portfolio as a source of differentiation to our gold industry peers for.
Voting shareholders with meaningful exposure from assets that are in production two day.
Based on the current spot pricing copper is expected to represent at least 20% of our gold equivalent ounces sold from 2021 to 'twenty 'twenty five.
Up from the 16% contribution in 2020 based on actual realized the process.
As already referred to.
Barrick copper portfolio performed well on the back of higher copper prices. The miners' production was impacted by lower grades, but is expected to improve and the second half of the year.
Jumbo Sayiid continues to deliver a consistent performance and drilling is on track to extend its life of mine once again.
And Ed Zelda of all of the operation is progressing its coupe Wroclaw project and there's still managing the impacts of the post COVID-19 pandemic in Chile.
We've recently focused and on some of the exploration near mine and adjacent the exploration potential at Jumbo Sayiid and recently we had.
Some wide and high grade intercepts, well outside the known ore body.
And these and Zips are expected to add too as I indicated earlier, the previously extended life of mine and you can see them on the sections.
On the slide.
So as I said at the outset Barrick core belief.
Is that the best assets.
Managed by the best people.
And we'll deliver the best results.
Our management team's record.
From our management team's record speaks for itself and as far as assets are concerned.
Barrick's majority owned and operated five of operates five of the world's 10 largest gold mines.
With the six and the form of turquoise ridge of close 11th.
Our strategy is to concentrate on tier one and tier two mines and.
And we have refined our portfolio accordingly through.
Through the disposal of noncore assets in the process, which is already realized one and a half billion dollars and is still continuing.
Most recently through the sale of Lagunas Norte, <unk>, and Peru, and some smaller legacy sites.
Each of our core mines has a high confidence tenure plan in place.
And I would point out those are plans not forecast.
And Nevada Gold mines in fact is looking beyond that.
The Roz and the gold price.
Has prompted a resurgence in my opinion of the short term ism, which plagues and has plagued the market.
With investors going for short term gains rather than sustainable growth.
Tower at Barrick.
It's all about building a business for owners.
And our focus is firmly on the future and on the creation and delivery of long term value to.
To all our shareholders as well as all our other stakeholders.
Our foundational objective is to Boulder business capable of delivering the industry's best returns.
Over two years on and we've made considerable progress towards that goal.
The dividend has tripled and we are proposing to more than double that with the return of capital in 2021.
Cash flows have increased to record levels and of one crippling debt burden has been reversed the.
These achievements are being built on a foundation of the great asset base.
Our fit for purpose structure and.
And of lean and agile leadership.
Who have more than lived up to our best people mantra.
We've certainly had our fair share of challenges no doubt.
And then some.
But we've overcome them and we'll continue to do that I promise you.
So looking ahead, our exploration teams are on the search for new opportunities to grow as sustainable and profitable strategy.
And we're more than ready to continue to exploit the openings that will be offered by the debt dynamics of our gold industry. So thank you ladies and gentlemen for your attention. We have most of our executive team on the call and and with that we'll be happy.
To open up for questions.
Thank you we will 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 of acknowledging your request.
You are using a speakerphone please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.
We'll pause for a moment as callers join the queue.
Our first question comes from Matthew Murphy of Barclays. Please go ahead.
Hi, Mark and team and <unk>.
The question on the Turquoise Ridge and there's a mention of for.
All of the ground of this the underground can you remind me where is this the underground and.
Is that anything that is of concern and ground conditions.
Anything that means on the outlook range.
Sorry.
Matthew what did you say about the as a reference to what.
The fall of ground.
So you know and turquoise ridge is and and and if you remember back.
And some of the other legacy operations in that region has a history of of poor ground conditions and the and so we are managing some of that at the moment, particularly around the the infrastructure and and again as we change the way, we model and with more G O.
Check input, we're comfortable that we'll move away from that and where we've been trialing automated miners in the region. We've also improved our geological knowledge.
The most definitely you know we were we're comfortable that we'll continue to improve the other thing about turquoise ridge is no with the.
With the completion of number three shaft will increase our hour.
Our hoisting capacity, which again puts and takes are some of the pressure of and improve our back for us our plans and increase our number of a face of availability of.
And Greg is actually on the call and maybe he wants to add to that Greg.
Yeah, Yeah, Mark. Thank you for that my Matthew Thanks for your question directly. The this the underground is actually at the twin creeks operation at the small underground that was the.
Operator day to day at a relatively low and ounces them from the from the bigger picture takeaways reaches out of mine underground operations and the fall of ground. There was it was significant the vehicles, but it's not significant as Mark said it was the isolated G. I take issue. So no it's not a major not of magic.
So and going forward, but and just for your information and that's I agree with the twin creeks noted two of turquoise Ridge.
Okay I appreciate that thanks a lot.
Yeah.
Our next question comes from Josh Wilson of RBC capital markets. Please go ahead.
Thanks.
Mark I can't help but notice there's been a number of and now it's been slightly across different jurisdictions on the resource nationalism side of it and it's not just a traditional a west African challenge I guess for Randgold is something that's also present and South America.
And also in Nevada, I'm, just wondering from your perspective and in all of the she's given your decades of experience you know what trends youre seeing and if this season.
A greater risks today, and perhaps what you've seen in the past.
Gosh, you know of course.
And in times like this where there hasnt been much economic activity and and and the gold industry of cost benefits from times like this because of the gold prices up.
We've we've certainly managed expectations and also supported our host countries and how states.
By advancing.
Some of our tax taxes.
I would also point out you know as one of the things that I've spoken to you about and shared with the market is you know it's the the gold industry has a real responsibility as a insurance policy.
And along with the the and.
And then also say gold industry, the entire industry and of course as miners, we have we benefit and participate in that.
And it's also important that we continue to build long term relationships with our stakeholders and as you as I've pointed out and many occasion theres. The short term ism that arises all of the top you know last time the post the global financial crisis. There was this.
Big demand for growth and then when the industry went out and bought anything that that it could and resulted in value destruction and then there was an enormous amount of your of wringing of hands, and and and and concern and then and that led to more demand from.
And the the industry as far as paying our dividends and we've seen again this time and so we have to put our balance on this because you know when the fund managers and demand.
The big payouts and dividends after a period, where the industry has and spent a lot of.
And of money and and investing in its own future and then get disturbed by the fact that other cost stakeholders la coast countries of which we are actually mining there.
National.
Assets.
And you know, it's it's an imbalance and and us and the middle as as managers of of these businesses and the industry have to balance that and so as you've seen barrick is down net extremely well and are following the crisis and Tanzania, we've reset the walk back a situation and.
And Papua New Guinea that that is now again of deliver on and are on us the the the the split and economics of Fe split on economics.
And and again, we are gonna have to do more of that as an industry. If we want to remain relevant and be able to upper right across the globe and are some of these developing countries and as you point out it's not only developing countries and.
The emerging markets anymore, it's everywhere.
Okay and.
And just one other question on poor grew out of the comment about.
Looking to revise guidance once that advances.
And is it fair to say that the production impact for 2020, one will be pretty limited and this is just more on on the capital side are in terms of the cost for restart.
Yes, that's a fair I mean, the one thing you wanted to do is get this right and you know it's been a.
And the tough negotiation, we need to get this right. It is a world class asset it's in the very challenging a G. A graphical area as well as of geopolitical area and so and and then are the a lot of the things that I'd like to see us improve on one particularly.
The the license to operate and our community relations our relationship with landowners and you know those landowners and we're very key and and getting this settlement over the line. So.
For me.
And we'd rather do that properly and make sure that we start a new program that is capable of operating and net and a more of a harmonious way.
The for another 20 years. So that's why we've made the decision to keep it out of our guidance.
For those were my questions. Thank you.
Our next question comes from Greg Barnes of TD Securities. Please go ahead.
And thank you Mark I just wanted to touch.
Touch on the for the.
Tailing system that are part.
Total of Yale and the new tailings facility and win it.
Expect that to get permitted and actually get out.
Yeah. So Greg the again. This is you know these consultations and one of the things that we're absolutely committed to is full consultation with all interested and affected parties as well as key stakeholders and and we've been doing that for a year now we have a.
A significant support base.
From the community and and of course and like anything there are detractors.
In the process and and and you know we had a altercation just last week, where some of handful of detractors rarely you know prevented a the the right of interested and in fact as parties want to hear what we've got to say.
And two to be heard and and so we are very determined to proceed with that we believe that it's this expansion is in the best interest of the communities and surrounding.
And.
The communities as well as the the provincial and national economies just to give you some background.
Since Pueblo Viejo, and poured its first gold and 2013.
Our average share of commercial tax corporate tax that's paid to the creation of corporate taxes paid to the the central government Treasury.
Is 18 per se. So we are a very significant part of.
Of the tax structure.
The structure in.
In Dominican Republic, and also we are by far the biggest and Prolia in that region and and again. This development is going to bring and a commitment we are already far advanced and investing and economic and <unk> businesses.
Like agribusiness, it's a very big kickoff the growing area around where are we planning to.
Bowl the impoundment facility.
And there's a lot of benefits that can come with this it's a natural basin, which is not very prospective for agriculture or anything else.
And and again are there a lot of those communities are would benefit from a relocation program some additional investment and their own agricultural businesses and other.
Industry. So you know this is the first of all public.
The consultation process and and we've got.
Time, and anyway, and these sort of things time is not import as important as the communication and of course, we open are openly inviting even the detractors to sit down and.
And and engage with us and understand what we're doing and and certainly you know this project has had.
And even over the recent elections had bipartisan support so yeah, we're very confident that we will progress this and and and and five day I E outcome that will benefit everyone and be acceptable for the mid to the majority.
And just to be clear of delay and the TSA expansion would not delay the ramping up the expansion of the total smart correct.
No we've got capacity and our current infrastructure to be able to manage this properly we need the T. S F operational during 2020 five and so you know we all working and of course, we would like to have a target. The nearer term so that we make sure that we do of Rob.
And at the right place before it becomes critical.
I just wanted to touch on and the monarch, given where the copper prices the operations and already.
And that's going to free cash flow and actually challenging some of your bigger gold operations on that from.
When the Randgold Barrick merger happened and there's a lot of talk of La Manana could be monetized is that.
Some of it and now it's off the table and you don't view and you want to maintain net exposure to gold.
Yes.
Greg One thing that you called and blame accuse us of is selling anything for nothing.
And we have a very good understanding of what the.
The value of mineral resources.
Come with and and Nevada, Mila Mono was one of those projects way of Sydney, we looked at it and it had a lung.
Bad history, it was very marginal.
As we looked at it we certainly had inbound interest are in and acquiring it bad at net non nobody who showed and interest came anywhere near what we believed it was worth and then the team that we put in there and we've reshaped it to be like Oh, I E M E operation.
<unk> Magellan the National management, very focused on profit send and efficiencies we reduced the.
The mining cost by nearly 50% and we made it a very profitable business, it's still a low grade operation, but it's a big operation and so like all of a low grade operations. When you have a big run up and the commodity price. It rarely does is highly geared and it really delivers significant.
The increased cash flow, so and what we've demonstrated to ourselves both with the Montana and Jumbo Sayiid is we certainly I know the all of our basic approach to mining we understand the capa business. We've proved that we can operate both high grade complex undergrad.
And mines copper mines in the form of Jumbo side, and also a low grade super pits like Lamar and so and and and we see the says is giving us a real and to the understanding of the Central African copper.
Belt, and and again, you know I think with some of the geopolitical developments and South America, you're going to see a pivot to some of the other.
Hum copper.
And Dow and doubt of geology of the World and you know, we've got that interest and and the and knowledge and the Pakistan a region, which is highly prospective a lot of again, the challenging address and now with the the the work that we.
We've done and.
And the Sandro Cup of belts.
Where we're much more comfortable of that.
Continuing to explore and invest in and that part of the world and and we also have a joint venture and the making with modern and the.
And the Arabian shield, and and and we've been working with the Egyptians on the latest bid round as well. So that's all sort of copper gold. So yeah, we'll continue to find.
Find out of own gold gold and gold copper and opportunities.
Okay. Thanks Mark.
Okay.
Okay.
Next question comes from Jackie <unk>.
And of BMO capital markets. Please go ahead.
Thanks, very much. Thanks for taking my question I guess I just wanted to ask you about the the presentation that you just gave me you've shown a lot of different exploration and opportunities and initiatives that youre working on and can you maybe help just to.
True and little bit what what might we expect to see in your next reserve update and and your next life of mine plan or a new guidance can you maybe give us the ER.
And idea of which of your exploration opportunities might start to show up and your numbers are.
Sooner.
The Jackie the as you know and and and the legacy Randgold assets. We had of system. It's the well established and we replaced gold and that we mine on a regular basis not always every year, but most years and we've also got visibility you know for Lula and Carter and and.
And Kibali, we can show, how we and convert ounces two or three years ahead of us.
What we've been working on AR and the the greater of Barrick Group now is building that same sort of a geological competence to be able to deliver that and and integrating and bringing back the geologist into the business of money.
And as you know.
The we've made of a.
Great progress in Tanzania.
And where we can see that we will continue to replace the ounces that were of mining and and and certainly add to that.
The exciting one for me is Nevada, and the Nevada gold mines, and the and the tremendous progress that we've made with the first of all integrating the.
The exploration group back into our partnering with the mineral resource management group and and as you would have picked up and the messaging today is that we're starting to look at 15 year Horizons in Nevada gold mines, because remember that as of.
Very big operation and bigger than most mining companies and and again it consumes a lot of gold and so we need to be investing and we needed to have a longer runway and being able to manage that business successfully and we certainly seeing that now and and we the objective of <unk>.
Boeing you the the the future is important because.
Again, what we what you can expect is.
Is the continued roll forward of the obtain your plans and as of of pointed out to you before we've got a two two and a bit years of higher capital as we recapitalize some of our tier one assets and then really we see you know.
Our portfolio as we've got of today.
Rarely grows cash flow at any gold price because why because the sustaining capital comes down to a run rate of between one and $1 2 billion ounces a billion dollars and and really that allows.
The allows you know of.
And free cash flow growth.
Of course that 10 year plan is a foundational base to al.
The full commitment to grow further value.
For owners and other stakeholders and and that that will come from.
The new exploration discoveries are again, Nevada is very special and that you know the size of ore bodies that you require to deliver multi million ounce discoveries are quite small relatively and we still believe there is enormous.
And the potential to discover and not only to extend and replace the the ounces. We mine on a brownfield spaces, but two to make significant greenfields exploration and that requires a real investment in R&D. The real you know a creative side of geology and exploration.
And then of course, there's the the easier projects to grow lock Pueblo Viejo, we're unlocking that constraint on.
The storage facility are really unlocks and ore body, that's already drilled out.
And and then you know the.
The valid areas is just more cash flow of effectively.
It's not right up and at a number of widen.
And part of our components, but we are very committed and again, one small or moderate discovery within tracking distance are valid error is very material for us and and again I need to remind you we've got a full processing facility.
Which can manage just about any top of metallurgical all of that you can imagine.
In that part of the world, whether it's copper copper gold or gold or silver by the way and so you know of our geologist.
We are challenging our geologists to get beyond just the.
And drilling on the edges of all bodies and go out there and and so the first couple of big holes. We've drove the one of our our reported you on Lama East [laughter].
Is a is one of those results and then we are very busy and in other parts of South America as we build our portfolio and continue to look to open up new frontiers, just as we are doing and and.
In the in the EMEA region.
And and of course, we've got Darden, and which we spoke about and and that is a big resource still of the bit of a way to go before we are absolutely clear about the geology.
And then I would like to believe that you know Oh, a settlement with Papua New Guinea, and and and are proving to the market that we know how to manage even and that part of the world because that part of the world is largely under explored.
And and again Ah Ah offers enormous opportunity too.
And to discover tier one assets, so that's why and and and again I think we our first focus.
Get this business back on track.
The up the portfolio to quality assets deal with the lot of leg of legacy liabilities, which we've made progress on we have certainly haven't completely dealt with all of them, but we are dealing with them and then now that we've got that are highly competent.
Very professional and other agile leadership and not the time to to focus on our future and that's something that as you know I, I really believe and and and and we've now got the balance sheet, the people and and the vision to be able to.
Continue to bolt on a sustainably profitable strategy.
Thanks, very much Mark that was really helpful color.
Our next question comes from Tanya <unk> of Scotiabank. Please go ahead.
Hi, good morning, and good afternoon everybody.
And just a couple of questions. If I could I just wanted to circle back to the core grafts and just wanted to ask and how long with the ramp up of tank to get to full capacity of six months and the appropriate ramp up.
Yeah.
Tanya Yeah.
Good morning to says you know if it with six months to really get this and to.
Everyone on to on track to start the operation and.
And and then a number of another six months in fact, and our agreement and our framework agreement, we've got seven months to get to sort of 80% of our targeted production. So that's the sort of guidance. We've agreed to the big that is not of the challenge the challenges to <unk>.
And from where we are two day to starting the operation and that's a big focus now because there's quite a lot of work to do on settling a special mining license agreeing on a the full implementation agreement and.
And dealing with.
All of the of various agreements that one has to negotiate and settle to be able to start operations, we have barrick and N P and L has the operator ship and.
And so it's very much and our control, but this time around we have a very we are equal part there in the form of the state two and with the real interest and this assay to belt of work with us to get this thing done and so.
You know so that's our timeframe. So if everything works really well, we'll we'll be there and are you now starting to and a.
The ramp up and quota for if it knocks out and a better way of modern he start that ramp up and the beginning of next year.
And just that the cost of healing and partner I'm kind of half tank car to get this line up can you just give us the scene outside.
And those could be with this the equity accounted.
So it's.
It's it's a it's it's we invest in it way of finding it and and and we recoup it as part of our so we recoup the capital and then after capital we share the economics.
53 per se and 47% in favor of of the government of net the key is the the of the economic the split.
For us as you know and of course, we've got the operator ship, so it's around $300 million and putting the money that we've already spent to get it back up to production molecules on the core Mark of I got it more or less right.
Hi, Mark that's right that's correct.
And when it's up that Graeme it's gonna be equity accounted for.
That's correct Tanya offline to you and where and who may have been weak.
Yes.
And bill.
Yeah, we'll move from proportional consolidation to equity accounting when when the the change guys project will be equity accounts. It is.
Okay, great and if I could just you know most of the CIC and I'm just trying to understand and appreciate Mike you know, we got and you know responsible capital won't play and just trying to understand and just your joint venture partner has given us some timeline in terms of getting cash out of Turkey, I see the responses.
The 509 paint and 100% basis coming through in March.
Sort of installments of <unk> can you just give us an idea of what is happening is that no longer the case that we're not gonna have installments anymore and also my understanding was that we needed to have them.
The parliamentary approval, if we wanted to kind of permanent mechanism and play kick out the money and seamlessly can you.
Satisfy some of that the.
The tightening of that'd be just explained to you said that the the the first of all day all she doesn't have exchange control approval, so and it's never had it there's a glitch and the.
And the a 2018 mining code, which by the way we all operate on the undead protest and on top of that.
The joint venture profit.
Part of it is correct, because we give them that guidance.
But you know the expectation of moving from this.
Paralyzed the government situation, which we've endured for.
Eight months now a little bit over eight months and has been you know we've been expecting it to happen and it hasn't happened as quickly as we expected and and even the.
The appointment of the the new cabinet, which as I indicated is now supported by and majority and Parliament and and the Senate that cabinet was only.
Sworn in la.
Last Thursday evenings, so they've had their first cabinet meeting on top of that we have had a special committee.
And formed by.
By the Cree to engage with the industry not only the kibali are and to ensure that we we.
That in the absence of the authority to do such that we do have an authorized and whats the atwood.
Committee authority to be able to process and engage and finding a solution and really the solution and is about we don't want to none of us want to do special deals and <unk>.
Anything we want the right to repatriate.
Funds not to take the about just because we feel like taking them out. They they are monies that have been returned as part of our revenue and our commitment to returning the of revenue from sales.
To the D. R C. But we wanted to use them to do three things of course, it's very important we pay back the the debt and that that comes with and most dense is instances of interest. So it's in everyone's interest excuse the pun to pay the debt back so that.
And we can get into a bigger tax position and everyone benefits.
Second part is we wanted to use those funds to be able to pay for services that we purchase from outside the country.
And the third and final one when all of that said and done as we wanted to repair to pay dividends because that's why.
We've invested and the first place and and when you pay dividends of course, the AR in country shareholders benefit as well as the government and treasury because of the war withholding taxes. So you know, it's and and so there's no argument about that philosophy.
And and it's just about making sure that we do it in the proper way and as you can imagine this is an important.
The fact of for all miners in the D. R C now because of.
And even the top of mind is after the fill up and in the copper price are generating free cash and you know want to be able to address and then theres been a lot of capital spent and and the Katanga region as we did and Kibali. So that's the background and and and and the the money is and our private banking.
Accounts, it's not under threat now and try to take it from us and.
It's been a very cordial and professional engagement and and where we're absolutely confident that we'll get to the point, where we returned to the the the the normal operating process, which we have all become accustomed to until the 2018 transition.
Okay. So we shouldnt be concerned whether these banks actually have your funds on deposit.
Thanks, and your private bank account and you can see it and.
And we're not we're not going to have to apply for piecemeal applications and that's what something that I've been very clear about is that you know we want to lasting solution because again.
You know when you talk to the new government and and the various ministers as well as the President's office. You know we were very outspoken about the 2018 code and and the fact that it was that and attempt to sort of aggressively harvest and something that hadn't even being invested in.
And now we've got you know two years on a bit more than two years on and we've got all of these super commodity prices and we've seen other invest investment into the DRC. So you know, there's a real desire and the end of it.
Our commitment to two work at EM and.
And attracting new investments and and I must say the new Prime Minister says is of the.
The young and energetic and very focused person from the industry and.
And I've got high hopes for for the mining industry and the DRC.
Okay, and so should I think of it then that we argument of getting money out and installments and.
And I've mentioned previously and you'll see it coming out you know whether you've got of course, if you've got lots of debt I.
I mean loans it'll come out quickly because we want to pay those lines off of as quickly as possible and everyone understands as a benefit to all the stakeholders both government and shareholders and then you know the the rest are we want to be able to continually work with it because you know the the D. O S. He has never been.
Our country, where you worry about your money because it's never had the exchange controls and.
And and so people don't make a big fuss about whether they've got the balance of a big balance or small balance and the country, we invested and U S dollar of cans and international banks within the DRC. So it's never under threat and and then of course, you know it will support the dividend policies.
That will come after the death of recruitment and and and we've what we've done and Kibali, specifically Anglogold Ashanti and ourselves is we've certainly indicated that we would be happy to pay some advanced dividends and to ensure that our partners to keep I get some banner.
Why are we paying down the lines.
And so can you just kind of frame it for me and Mark that we do not need parliamentary approval to put it for.
And that mechanism in place to get this out.
The node because we've got the special committee are piling on the process, but at the same time, we also need to take away. The the what's the right word the contradiction and two articles within the law and that of.
Again as part of this process and and and again, we couldnt get of that and win and we didn't have you know alignment within parliament, but we certainly have now.
I, just said and one other question just from a Q2 and it appears to me that with all of the maintenance shutdowns that you have and several asset and better grade profiles and the second half of the year Q2 could potentially be we kind of in Q1 and the production basis is that something that I should think of the is that a fair assumption.
So.
Sort of let's work backwards of but.
So for.
Really if you look at our guidance is for point for two for point 7 million ounces for the year.
Midyear, we gotta be at half of the bottom end of that guidance and then we'll fill up and the second half. That's that's the sort of guidance, we're looking at them, which will take us up well into our guidance and and so so.
Several of the.
The similar outlook and quarter two as in quarter, one and if it's if it's off the it's really a small a percentage it's very it looks very much if you take the.
The four point and for which is the bottom and our Dod and Nevada and about two that's more or less of what our target is for midyear.
And that's all of their Atkins and great. Thank you so much and good luck on that the IC.
So I don't need any luck. Thank you Tanya.
Our next question comes from Mike Parkin of National Bank. Please go ahead.
Hey, guys. Thanks for taking my questions, just with a per gear and the restart.
Looking at like reported COVID-19 numbers, the seemed really low are there as you know a fairly significant recent jump and the numbers.
So and the ground or at least in your communications with the appetite is that you know.
Is there any kind of COVID-19 challenge that maybe.
Puts a little bit of additional kind of challenge on the restart of core gear.
So Mark you know, we all come from of Delta.
And says many members of my team with numerous Pandemics viral pandemics, not just COVID-19, and the best way to death.
And manage these per day per day makes is with proper planning and and and and some paranoia.
Hmm.
Absolutely you know, we've already Mark Hill and the team.
And we have a we've started employing and building our capacity back into progress itself.
That's a very real focus for us mobilizing the ability to do testing we are Oh, we have tested and facilities and all of our operations now or right adjacent to them. Some [laughter], we own and Sabah and partnership with <unk>.
The local authority or the National authority across.
Organization and we are currently as we speak mobilizing laboratory into program and and again Ah.
You know, making sure that we have adequate antigen tests, which we've which have become extremely.
The accurate of the top.
And and then it's all of that our reach out after each sorry into the communities, we've started that and and and we you know we will treat povera as we.
Start employing a as we do on every one of the operations of course as you've seen that the international community has reached out to a true peppa and you're going to need to support and early vaccination process and again I mentioned and our presenter.
And that we have a global vaccine initiative that we're working on and where we can we are you know we are facilitating and in countries, where we aren't able to do it ourselves and where we are able to directly invest and support our countries and regions.
And we do that as well, so yeah, we will and and and to say that yeah definitely.
In Italy, COVID-19 is it challenging situations and Papua New Guinea, and again, the that countries and in our infrastructure and and health facilities are not the best and so you you need to manage it with a you know with a real focus.
Great. Thanks, very much for that everything else I had already been asked so thank you.
Right.
Our next question comes from Kip keen of S&P Global. Please go ahead.
Okay.
Thanks for taking thanks for taking the question and just looking more generally and on in terms of acquisitions.
Hum.
And if you look at the market out there and and what's available and you see whether it's the gold and copper.
Company minor.
And they tend to look at fairly conservatively at share what's available out there that is not much and so when you look at the end of potential acquisitions out there.
How do you view of the market in terms of what's available.
Okay.
Yeah, So kip and that's it [laughter] of good observation I read out of the answer that question.
The there's still consolidation and my mind required, particularly and the gold industry.
And and and again.
But the problem is that a lot of the the high quality assets on bedded in individual companies and it's hard to get a deal that brings a significant and you know our portfolio with it and.
Again, I think you know to be able to do.
Value, creating M&A.
What needs the support of the fund managers and investors and otherwise you know, it's a better option to continue to explore and and hopefully I've demonstrated that barrick real focus.
Over the last six months once we got a settled.
Israeli building that capacity for organic growth.
And so and then on the copper side too you know, there's and there's very few pure copper plays I think everyone and again has been caught flat footed and this copper price run up.
As you know we've been talking about it for a long time, and we've certainly focused and on our portfolio to make sure that it's and efficiently run and and and we maximize the returns on a on the rising copper prices again.
And we've invested in additional expertise and I exploration teams to be able to build better copper, our exploration strategies and and and and also.
Through the whole spectrum of various gold copper geological environments.
And.
And and better at the same time and in markets. There are always opportunities to create to benefit from up to do deliver value we've proved that.
Through our history, and so you know of Barrick and Randgold.
And have delivered significant value through opportunistic.
The M&A transactions throughout their history and so you know we are we constantly looking at opportunities. We we run a ruler of any new no.
Non spent any new development and and and what's important is we have the skill base and the balance sheet to be able to.
Exploit.
And opportunity when it does of raws and we'll continue to do that.
We are kept honest by our filters and not to add kipp without we're not we're not growth.
We're not obsessed with growth of but we are obsessed with creating value.
Right now for them.
Well in advance of.
Given the dearth of discovery and the past say 10, or so years I mean do you put more focus on exploration. Obviously, you have done to it to a degree but does it become a greater focus the and the next couple of years.
Yeah, there's a there's a great slide that we shared with the market when we announced the merger with Randgold resources.
Where we showed the growth and in the Barrick and Randgold resources and the value creation from our primary discoveries, but also equally.
Both companies delivered significant value by post acquisition.
The expansions and Kibali is a classic example, and and the DRC.
And so that's really the that there's you know the best way to create real value and this industry is to make your own discovery.
The second best way as defined and somebody who's made the discovery of it and it hasn't worked out how valuable it is yet.
And and so they're and lives of the importance of having a highly skilled exploration and mineral resource management team and ones.
And and one's business.
Okay. Thanks.
Okay.
Our next question comes from Brian Macarthur of Raymond James. Please go ahead.
Hi, good morning, Mark.
Maybe just following a little bit on that discussion and and we did talk about your copper portfolio earlier, and you mentioned reco, <expletive> and Pakistan. So just a couple of questions. The first of all can you remind me where we stand on that potential award settlement and the second part I guess the is it more philosophical question I mean.
And again that project, if I remember had decent infrastructure pretty good geology.
But it's all sort of pretty tough country, but that's something years, you've said in the past you've had the scale to deal with or are you thinking more and now philosophically. That's nothing you might like the developed or do you just have to wait for the settlement or is it something more of that now the copper prices up you know these things that you set of pretty scarce.
And maybe theres, a partner or somebody else that can come in and develop it just philosophically how you look at something like that.
So as you know one of the philosophies that we brought them in Barrick and 2019 was you know I'm not a big one net and that takes on host countries are in of thought and and so we we we reached out on the back of what.
The unfortunate already started to.
You can find the solution that was a constructive with the Tanzanian government and we've been very successful and that again, you've seen us manage situations, whether it's historically, we had issues out of the Mali because governments don't are not therefore lot of anymore of this button all day.
And then they move around and move out of turn out of a quite a lot.
I think I've worked with block 20 different finance and minds of ministers and Molly.
And and we did the same and South America, both in Argentina to build a stronger more transparent and engaging partnership with buzz the argentinean and federal government and more importantly, the sun one and <unk>.
Provincial government and we did the same and dealing with the the legacy challenges around Pasqua and Chile.
And and you know we've built a much stronger better relationship Ah in Chile, and whilst we've got some way to go to evaluate fully the potential of Pascal we are busy with that so.
We've done the same and and and Rick of <expletive> and net where there is an award out there it's a $6 billion.
Award, it's it's shared with our partners Antofagasta.
Now to go and try and garnish that the amount of money from Pakistan, which has just been led $6 billion by the World Bank IMF as of <unk>.
Hard task and we believe that our you know, it's a world class asset as you point out Brian and.
And Theres Merit, and and finding a way, where we will earn and back and award and you know and of the if and.
And if Augusta Con forget that the hit around operating day will find the work to find a way to to compromise and say two of them that their side of the.
Of the.
And and you know that are that the and that area is has got enormous mineral endowment both gold and.
The copper and and other a ray of elements and and and metals, So yeah, and and and as I've experienced in my professional life went off of started out and sub Saharan Africa was almost the noga place and today, it's very easy to operate and so you know the world.
<unk> and and I think that you know, we've had very constructive and and discussions with the.
With the Pakistan, and Bellucci saw star and authorities and and I would and you know I I can certainly say barrick's a.
Prejudice is to find a workable.
Compromised solutions that that deliver constructive outcomes to these often acrimonious situations.
That covers your question.
No. That's very helpful. So I mean, you are still able to negotiate the even though the settlements out there.
No it absolutely because you know, there's very clearly oh and the sentiment is not there and it's the the award has been.
Being that you know are approved and now it's how do you how does the Pakistan deliver on that and again it was and the just bolting on on my own personal view.
View about.
The responsible mining and how we deal with our host countries, but the same yeah. We've started that even before you know the the the the we took up our the Randgold deal.
And and it's much more constructive to do that way and.
And people benefit out of our paying office and it's sort of judgment block. This.
But again, there's a there's water to run on the flow under the bridge and the we've got you know a lot of bad luck. The program I mean, Paul grow as the.
Pretty challenging engagement, but the outcome of hope will be worth it for all stakeholders.
Great. Thanks, very much I was just trying to figure out what the option value might be there because it could potentially be meaningful.
I mean that option value is a good way to look at it you're nuts.
And it's is of value and and what we prepare to do is take a long dated.
The position as far as getting full access to that sadly.
Great. Thanks, very much I appreciate the color Mark.
The right.
Our next question comes from John Tumazos of John Tumazos, very independent research. Please go ahead.
Congratulations on all of the great work Mark.
I'll say outlook.
For just getting around and drilling.
Drilling all of the meters you wanted the true.
Exploring and replacing reserves of share.
Given the pandemic.
Yes.
Well as you know we haven't stopped.
Fundamentally believe and managing by walking about and.
And we've continued as normal we've.
And we've just finished a you know as part of this quarter. One results. We had full of management reviews, with all of our operations and and unsought team effectiveness and.
Strategic review workshops.
And so you know the it hasn't you know we've had to be a little flexibility.
And the way, we do things on the drilling side are you know the big challenges to get drove companies to work for us.
In Africa, we are bought long of his biggest clients.
And have been through all of you know every part of the cycle.
Because we believe and you know of investing in our future.
And we've we've worked very hard to get drill rigs into.
Onto the Andes and that's been a big challenge during this time and certainly from the Argentinean side, we now have drill rigs up there. We've as you would've read we we've just.
Completed the drilling some confirmation re drilling on the Chilean side and pasqua, but again, we could we could do with the few more rigs.
At this stage, we've been working on incentives and how we partner with the drilling companies to be able to achieve our objectives.
Of Fantastic example of the Ted NASA T. That's required to get rigs and do some countries, particularly out of the crisis like this has been and Saudi Arabia, but again you saw today the results of that effort to bring rigs into the country and get the drilling started.
So those have been the the biggest challenges again, and Nevada and <unk>.
And we've we've had to work much harder to build a more business relationship with the drilling companies.
And I don't think we're quite there yet, but you know we are prepared to invest and drilling our companies to be able to get them to a level of where they are able to deliver on what we want them to do so and we see that as a very critical part of our.
And business.
So you know I think in summary, the the challenges of being the Andes for many reasons because you know Chile is always the battled with the COVID-19 pandemic and Argentina as well.
And.
Again, I'm I'm pleased to say that the teams have made progress and we do have.
True.
Really ongoing we've just mobilized yeah last year and and Donlin, we didn't have a single COVID-19 case touchwood hopefully it continues this summer and.
And so we've just mobilized the rigs into and to Donlin are we are the mobilizing the rigs that are down and and the and he's right now because we're moving into winter.
Mark and other cycles 10 years ago, It was hard to get the tires for the big trucks.
Maybe once or twice the generation or so ago cyanide was short what else. Besides drill rigs is hard for you to get enough of.
Yeah.
Great drill intercepts.
So again.
John Baugh focus I mean, what we bring as you know mining and I, often say is all about logistics and supply chains. We got I would argue we probably got the best sort.
<unk> chain organization and the mining industry.
And I mean, when you see how they managed this the impacts of this crisis and the old flexibility as soon as we saw it coming we both flexibility and to our supply chain, we were able to switch from China to Europe back to China seamlessly on on supplies.
Things like cyanide and in particular.
And again you know we are all about long term relationships. So we've done a lot of work. We've built some very strong partnerships on a global basis are with the top tier suppliers.
And again.
Of course really loyal through the cycle and the fact that we run.
Long term contracts.
We find that we have less we've we've rarely very seldom been held to read and some buyout of long term partners are on every aspect of it and we we run our own you know we have visibility of every single consignment, we manage every as.
Fact of the supply chain and you know and we monitor it.
Cause effectively we just move stuff as the mine as you know we were blocked.
The stuff on the ground or in the pit we move it to the processing plant and we move a whole lot of stuff to the processing part to process that ore and then we shut that pause of golf the just one big movement.
So I you know I I I can clearly.
Confirm that on the tire side, we're in good shape, we certainly expecting some squeeze.
But again, we've spent a lot of time building those relationships are across the Barrick group and we've got a lot of buying power of as you can imagine.
Smart.
Made overtures for a year or two ago toward Freeport when copper was bottoming.
It was a good show they didn't want and dance.
Gave it a good try at the right time.
Almost tongue and cheek.
Maybe you should take a look at Ford Motor Theyre, having a big trouble with logistics for their outputs down 50%.
All of the best Smart So I'm glad you recognize that buy copper of vision was had merit.
Yeah.
And maybe we should've done it a little differently, but it certainly and what it proves.
Is that where are absolutely focused on creating value and we recognized when there's an opportunity.
I think we also learn from times and we when we file our non devers and.
And at the same time, we're not reckless and how we engage on.
The pursuing opportunities that we rationale so yeah.
There was a there was the one opportunity where hunting and some more now and and I think what hopefully shared with you today is that we're also investing and Oh and future which is.
And my history and my.
Korea, that's always been the biggest value creator.
Mark sometimes the other guy and knows everyone of us assets for good.
And as commodity as well.
Once in a while.
And the same now.
And keep trying.
Exactly good share that you are a dud jewelry.
[laughter].
Yeah.
There are no more questions from the conference call.
Alright, well. Thank you everyone and that was a quiet of conversation and I really appreciate your input and and and for you just staying with us and this conversation again look forward to.
Two of the next time, we talk and and hopefully ever.
Everyone and we'll make an effort to join the Nevada gold mines team and its virtual investor day, coming up and and I'm sure you'll find it very interesting and see a little bit more of the color and and detail of what that team has achieved with the set of variety.
High class asset. So again, thank you for your time and and again, if there's anything that you've forgotten to ask or you think of after we saw and off please feel free to to to reach out to the team. So again. Thank you.
This concludes today's conference call.
Should you have any additional questions. Please contact the Barrick Investor Relations Department you May now disconnect your lines.
And you for participating and have a pleasant day.
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