Q1 2021 Barrick Gold Corp Earnings Call
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 have a quest.
<unk>. 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 barrick's website. Later today may 15 2000.
'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 quarter, one results presentation.
What's a wild past 12 months it has been.
You will recall it was Q1 'twenty 'twenty when we held our first all virtual results presentation exactly a year ago.
When we announced the merger between Barrick and Randgold back in September 20, <unk>, We said that its rationale was to combine the industry's best assets with its best manages to bold its most valued gold business.
It was and remains a long term strategy.
But in a relatively short period of time as I'll show you. Today again, we have also achieved a long list of established accomplishments.
Most recently in a quarter is 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.
In spite of an 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 for 750 million return of capital distribution more than doubling the payout for the year on a per share basis.
Yes.
Exploration refocused and stepped up since the merger is pumping exciting prospects into our pipeline for multiple targets across the group and major growth projects, such as the Pueblo Viejo expansion and the third shaft at Turquoise Ridge.
All making good progress.
And at <unk>, we are on track to resume operations later this year following a binding framework agreement with the government of Papua New Guinea.
Okay.
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 over a long period of time and their social license to operate and this has served us well at a time when ESG has become a key investment criterion.
In 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 '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 is G matrix.
We have also advanced our admission reduction target from 10% to 30% by 2030 with the ultimate aim of achieving net zero by 2050.
The principles behind ESG have long being practiced barbaric two legacy companies.
And are deeply embedded in our every facet of the business.
We believe that a good company should also be a good neighbor.
Which is why we invest heavily in community development projects guided by the fully functional community development committees, we now have at all our mines.
We also prioritized local employment.
Last year, 97% of our workforce will host country nationals.
And we give 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 our 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 checkered human rights history of our Tanzanian mines through audits and training conducted by external experts.
These are the highlights from the 'twenty 'twenty sustainability report.
It's a core Barrick philosophy that the benefits created by our operations should be shed.
Equitably with all stakeholders, particularly.
Our host countries and communities, who are the owners of the resources we mined.
As we have already seen in Tanzania, and Papa New Guinea governments of developing countries are demanding a bigger slice of ownership.
Barrick's onto 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 in 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.
A number of our mines have already received the ASO 45001 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, Pueblo Viejo and Jumbo Sayiid.
Our group wide vaccination plan is currently in the works.
There was zero a 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 reuse programs, which in the first quarter of 2021.
Achieved an 84% efficiency rate ahead of our 80% target.
Carbon emissions continued to decrease in line with plan and we've been extending our environmental reach into the wilderness areas of our African host countries with some important natural assets are under threat.
In terms of our recent agreement with the government of Mali, we are assisting with the rehabilitation of the neglected Pheno reserve.
A UNESCO biosphere sought.
In the Democratic Republic of Congo, We support the <unk> National Park home to the country's largest elephant population as well as the critically critically endangered chordophone zuroff.
As part of our support we spun said elephant tracking program and since 20 September 2019, no incidence of elephant poaching have been recorded which is a 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 year and putting us on track to achieve our annual production target.
A particularly notable feature was the 31% increase in 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.
The commissioning of a new Leach pad valley at valid error.
The ramp up of underground operations at full year on Hulu.
And higher grades forecast for Lamar on.
Yeah.
The strong free cash flow and the increase in net cash are the highlights of the quarter.
The sustainable quarterly dividend, coupled with the 750 million return of capital represent an 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 a 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 year and on track to meet its annual guidance of 2.3 to two point for 5 million ounces of gold on an attributable basis.
Nevada is barrick value foundation with three of our tier one mines, leading margins a strong operating cash flow and a 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 prospective gold district and major opportunities are taking shape around our core sites at Carlin 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 Collyn mine was down because higher carbonaceous or had to be blended with low grade stockpile feed which affected roaster feed grade.
Costs were nevertheless, well contained both collyn roasters will be shut down for their 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 Karl and trained is targeting higher value breccia bodies open at depth with a view to enhancing the life of mine as well as making new discoveries.
Level.
Continues to yield robust high grade results and recently identified controls on opening up new peripheral targets.
Two emerging high grade zones have been identified within a broad mineralized horizon.
Evaluation of the northern level areas full potential has been accelerated and risk resource conversion is in progress.
We expect a maiden resource for the year end and are confident that it will continue to grow.
Yeah.
We now move to Cortez, where production was impacted by re sequencing as a result of a previously reported geotechnical event, which delayed stacking at the heap leach pad and affected the feed lend to the oxide more.
Demand and expect a stronger second half of the year, thanks to a higher contribution of fresh ore from pipeline as mining day ramps up.
Yeah.
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 validates my personal belief of the potential of this area.
We're also looking at pipeline 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 day cons have now intersected the ore body with positive results day.
<unk> is accessing all for the initial bulk metallurgical campaigns and heading north towards towards the first vent shaft position.
We are considering whether to access for mile from surface or bought sorry, we are considering whether to assess for mile from surface ore body underground from gold rush, which is our preferred option.
For now based on what we know provides real potential to add to gold rushes value in many ways.
Not least of all four mile is a 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 costs were well within guidance construction of the third shaft debottleneck, the hoisting and ventilation constraints, which will allow for higher underground production.
And it remains within budget, that's the turquoise number.
On the twin the number three shaft it remains within budget and unchangeable for commissioning in late 2022.
We have at Turquoise ridge made considerable geological progress improved.
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 complex.
And still in Nevada pre.
Production at Phoenix was consistent with the previous quarter and costs were significantly lower due to increased copper briar byproduct product credits and I would just point out that.
It's only at Phoenix, where we allocate.
Allocate credits for the copper back to the.
All in sustaining cost per ounce of gold.
With total cash costs of $79 per ounce for the quarter.
Long Canyon continued to boast 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.
Yeah.
Further north in Canada here.
Hemlo had a challenging quarter as it continues to transition to an underground only operation with the closure of the open pits in late 2020.
Strong production is expected in the second half of the year and the mine remains on track to meet its annual guidance.
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 them on.
At Hemlo, the geologists have done a great job and the identification of significant new extensions outside the mine plan is expected to speed up its journey to tier two status.
So back to the United States, where donlin joint venture with Nova Gold in Alaska has commenced its 2021 drill program of 20000 meters.
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 after which we will decide on the next steps in this project's progression.
And so now we move to move South to our Latin American and Asia Pacific Region, where we continued to intensify our focus on generative exploration and new business.
The region also houses two of our key projects.
Pablo via hose plant in 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 our program in this guidance.
Yeah.
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 be on 2040.
Despite the lower grades its costs for the quarter were well below the bottom end of guidance confirming its status as a lead leading low cost tier one mine.
The expansion project remains on track and on budget and its Sag mill is now on routes to the site.
Bulk earthworks for the plants have been completed.
And it is formally engaged with government and other stakeholders to secure land for the news day is tailings storage facility.
The integration of the Pueblo Viejo District structural Fame work with improved geological knowledge has revealed a new targets, particularly exciting is the gold mineralization net zambrano <unk>.
We're ongoing work has confirmed 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, where production was seriously impacted by the pandemic lockdown in 'twenty 'twenty in Argentina.
But last quarter it 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.
Scheduled 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 in valid areas greenhouse gas emissions.
As well as operating costs.
The pandemic also affected the district's exploration progress.
But these are getting back the programs are now getting back on track Lama in the area between valid era, 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 example.
At Lama East two drill holes have confirmed significant extensions 300 meters beyond the current resource.
Both appear to have encountered over 200 meters of mineralization starting near the surface.
Assays are pending but the initial chip samples 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.
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 poor growth, which has been on care and maintenance since this time last year.
For Cree key principles of the agreement are listed here on this slide.
And I believe it's a fair deal, which represents a true win win outcome for both parties.
The underlying implementation agreements are in progress and the mine will be restarted when these have been finalized.
If all goes well this could be by the end of this year.
Yes.
So over now to Africa, and the Middle East home to two tier one mines and two copper mines.
Another strong quarter means the region is well positioned to achieve its annual attributable guidance of between one and a half and one 6 million ounces of gold and 320 to 360 million pounds of copper.
The Africa and Middle East region boasts enormous prospective 80 supporting the potential to further add to the already robust 10 year plans.
And.
Lula Garden carve gun Carter this quarter delivered another stellar performance, beating its budget and boosting production by 25 per cent quarter on quarter on the back of higher grades and increased throughput.
The complex continues to invest in its future and development of its third underground mine net cone Carter is well underway.
Studies are also continuing to to advance a potential force underground mine at Lou low three and a pit expansion at Julia sauce.
And Meanwhile.
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.
It straddles Molly's border was Senegal, where we are finding interesting an extended new styles of mineralization.
Particularly in kv waste and soya in the band <unk> permit.
And on the modeling side.
There is a potential new discovery at Elia 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.
Extensive anomalism points to the potential for further opportunities.
As you know last quarter, we repositioned.
On.
Tongue on 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 on satellite targets as this map shows the exploration team has identified a number of these targets each with the potential of increasing tongue orange life of mine.
And what's important is quite a few of these priority targets are within 10 kilometers of the tongue on more.
Now across to East Africa, where Kibali is Q1 production remained in line with plan as it keeps on track to achieve its annual guidance.
Essentially a new government has taken office in the DRC and we spend some time with this 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 I think.
Now after seven months of really no.
Real cabinet.
To speak off we now have a fully.
And pointed and responsible and accountable cabinets 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 a 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 previous.
As drilling and the existing resource limits on all loads and.
K C. D is all about these cigars debt plunged down and and.
And they have a high level of Hawk.
Number of ounces per vertical meter because of their grade.
This work supports the extension of the KC D system, and bodes very well for our ability to continue replacing depletion at kibali for the foreseeable future.
Likewise exploration along the case Ed 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 table material.
The exploration pipeline at Kibali continues to grow and it is currently led by the column that target.
Moving further east now to Tanzania, and North Mara where north Mara had a good quarter on the back of improved underground productivity and higher grades we.
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 gold 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 bully on Hulu is making very good progress towards achieving steady state production.
The drill program in the high grade deep West Zone continues to produce positive results.
So a little bit about our copper production car.
Copper has been one of the top performing commodities over the past 12 months with a metal recently breaching $10000 per ton for the first time in over 10 years.
The fundamentals for.
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, providing shareholders with meaningful exposure from assets that are in production today.
Based on the current spot pricing copper is expected to represent at least 20 per cent of our gold equivalent ounces sold from 2021 to 'twenty 'twenty five.
Up from the 16% contribution in 'twenty 'twenty based on actual realized prices.
As already referred to.
Barrick copper portfolio performed well on the back of higher copper prices low miners' production was impacted by lower grades but is expected to improve in the second half of the year.
Jabot Sayiid continues to deliver a consistent performance and drilling is on track to extend its life of mine once again.
And at Zaldivar, the operation is progressing its Cooper claw project and is still managing the impacts of the post COVID-19 pandemic in Chile.
We've recently focused in on some of the exploration near mine and adjacent day exploration potential at Jumbo Sayiid and recently we had.
Some wide and high grade intercepts, well outside the known ore body.
And these intercepts are expected to add too as I indicated earlier, the previously extended life of mine and you can see them on these sections.
On this slide.
So as I said at the outset Barrick core belief.
Is that the best assets.
Managed by the best people.
We will deliver the best results.
Our management team's record.
Our management team's record speaks for itself and as far as assets are concerned.
Eric's majority owned and operated five of operates five of the world's 10 largest gold mines.
With a six in the form of turquoise Ridge.
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 a process, which is already realized one on a half billion dollars and is still continuing.
Most recently through the sale of Lagunas Norte day in Peru, and some smaller legacy sites.
Each of our core mines has a high confidence 10 year plan in place.
And I would point out those are plans not forecast.
And Nevada Gold mines in fact is looking beyond that.
Yeah.
The rise in 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.
Harry 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 all our shareholders as well as all our other stakeholders.
Our foundational.
Objective is to build a business capable of delivering the industry's best returns.
Over two years on we've made considerable progress towards that goal.
The dividend has tripled and.
And we are now proposing to more than double that with the return of capital in 2021 cash.
Cash flows have increased to record levels and no one's crippling debt burden has been reversed.
These achievements are being built on a foundation of a great asset base.
Fit for purpose structure, and a 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 our sustainable 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 with that we'll be happy.
To open up for questions.
Thank you.
Now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad.
Aratana 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 college, China Q.
Our first question comes from Matthew Murphy of Barclays. Please go ahead.
Hi, Mark and team.
Just a question on the turquoise ridge.
As I've mentioned have fallen.
Solid ground on this the underground can you remind me, whereas Vista underground and.
And is that anything that.
Is that a concern on ground conditions.
Anything that means on the outlook right.
Sorry.
Matthew what did you say about there's a reference to what.
A fall of ground.
So you know turquoise ridge's and and if you remember back.
At some of the other legacy operations in that region has a history of a poor ground conditions and and so we are managing some of that at the moment, particularly around the infrastructure and and again as we change the way we mine.
With more G O take input we're comfortable that we'll move away from debt and where we've been trialing automated miners in the region. We've also improved our geological knowledge. So.
Most definitely where we're comfortable that we'll continue to improve the other thing about turquoise ridge is.
With the.
With the completion of number three shaft will increase.
Our our hoisting capacity, which again puts.
Some of the pressure off our improve our back for us our plans and increase our number of Ah face availability.
Greg is actually on the call and maybe he wants to add to that Greg.
Yeah, Yeah, Mark Thank you for that Mark Matthew to answer your question directly the Vista underground is actually at the twin creeks operation. It's a small underground that was.
Operator day to day relatively low ounces.
From the from the bigger picture Turquoise Ridge's day of mine underground operation and the fall of ground. There was it was significant for vehicles, but it's not significant.
As Mike said it was isolated Geo tech issue. So no it's not a major it not a major concern going forward.
And just for your information, it's overweight to encourage noted turquoise ridge.
Okay I appreciate that thanks a lot.
Our next question comes from Josh Wilson with RBC capital markets. Please go ahead.
Thanks.
Mark I can't help but notice there's been a number of announcements lately across different jurisdictions on.
The resource nationalism side, and it's not just a traditional west African challenge I guess for Randgold is for shopping it's also present in South America.
And also in Nevada, I'm, just wondering from your perspective and in our sheet given your decades of experience.
What trends Youre seeing in efficiency.
Uh huh.
Greater risks today than perhaps what you've seen in the past.
Yes.
Of course.
Times like this where there hasnt been much economic activity and and and the gold industry of course benefits from times like this because of gold prices up.
We've we've certainly managed expectations and also supported our host countries and host states.
By advancing.
Some of our tax taxes.
I would also point out as well.
One of the things that I've spoken to you about and shared with the market is.
It's the gold industry has a real responsibility as a insurance policy.
Along with the well.
I would also say gold industry, the entire industry and of course as miners, we have we benefit and participate in that.
It's also important debt, we continue to build long term relationships with our stakeholders and as you as I've pointed out in many occasion. There's this short term ism net arises all the time.
Last time per.
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 wringing of hands on and concern and and that led to more demand from.
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 in our fund managers demand.
The big.
Big payouts in dividends after a period, where the industry hasn't spent a lot of.
It's of money and investing in its own future and then get disturbed by the fact that other core stakeholders low cost countries of which we are actually mining there.
National.
Assets.
It's an imbalance and us in the middle as as managers of these businesses in the industry have to balance debt and so as you've seen Barrick has done net extremely well and are following the crisis in Tanzania, We've recently walk back a situation.
In Papua New Guinea debt that is now going to deliver on and on.
The the the split in economic Safaie 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.
Operate across the globe and.
Some of these developing countries and as you point out just it's not only developing countries and emerging markets anymore. It's everywhere.
Okay.
And just one other question on on program the comment about share.
Looking to revise guidance once that advances.
Is it fair to say that the production impact for 2021 will be pretty limited. This is just more on on the capital side 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.
That tough negotiation, we need to get this right. It is a world class asset it's in a very challenging.
Graphical area as well as a geopolitical area and so and you know there are a lot of things that I'd like to see us improve on one, particularly the the license to operate in our community relations our relationship with landowners and you know those landowners we're very.
Key ni and getting this settlement over the line so.
For me.
We'd rather do that properly and make sure that we start a new program that is capable of operating in net in a more a harmonious way.
For another 20 years. So that's why we made the decision to keep it out of our guidance.
Great those are my questions. Thank you.
Yes.
Our next question comes from Greg Barnes of TD Securities. Please go ahead.
Thank you Mark I just wanted to touch.
Touch on the on.
Tailings system at a price.
Several of the new tailings facility and win it.
Expect that to get permitted and actually go out.
Yeah. So Greg there again. This is these consultations and one of the things that we are 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 significant <unk>.
Port base.
From the community and and of course like anything there are detractors.
In the process and and you know we had a altercation just last week with some a handful of detractors rarely you know prevented a the right of.
Interested and in fact as parties want to hear what we've got to say and two to be heard and so we are very determined to proceed with that we believe that it's this expansion is in the best interests of the commute.
Ts and surrounding.
Communities as well as the the provincial and national economies.
Just to give you some background.
Since Pueblo Viejo poured its first gold in 2013.
Average share of commercial tax corporate tax that's paid to the <unk>.
<unk> corporate taxes paid to the central government Treasury is 18 per se. So we are a very significant part of them.
Of the tax.
Structure in.
In Dominican Republic, and also we are by far the biggest employer in that region and and again. This development is going to bring in on our commitment we are already far advanced in investing in economic.
Businesses like agribusiness, it's a very big cacao growing area around where are we planning to.
Bold the impoundment facility.
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.
For a lot of those communities.
Would benefit from a relocation program some additional investment in their own.
Agricultural businesses and other.
Industry. So you know this is the first of our public.
The consultation process and and we've got.
Tom in anyway.
In these sort of things.
Time is not import is important is for communication and of course, we open are openly inviting even the detractors to sit down and and engage with us and understand what we're doing and certainly you know this project has had.
Even over the recent elections had bipartisan support so.
We are very confident that we will progress this in and five day, a outcome that will benefit everyone and be acceptable for them to the majority.
And just to be clear delay on the tier four expansion would not delay you're ramping on expansion of the project.
We've got capacity in our current infrastructure to be able to manage this properly we.
We need the TSA for operational during 2025, and so we are working and of course, we would like to have a target.
Near term so that we make sure that we do arrive it at the right place before it becomes critical.
I just wanted to touch on them on a given where the copper prices the operations generating significant free cash flow and actually challenging some of your bigger gold operations on that front.
When the Randgold Barrick merger happened is a lot of talk on La Manana couldn't monetize is that.
Some of it and now it's off the table and you don't even you want to maintain net exposure to gold.
Yes.
One thing that you call on player.
Gives us of is selling anything for nothing.
And we have a very good understanding of what.
Value mineral resources.
Come with and and Nevada, Mila Mono is one of those projects.
Projects were certainly.
We looked at it it it had a lung.
Bad history, it was very marginal but as we looked at it we certainly had inbound interest.
In and acquiring it bad at none none nobody who showed an 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.
A M E operations majority National management very focused on.
Profits and and efficiencies we reduced the.
The mining costs 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 lock all.
Low grade operations, when you have a big run up in the commodity price. It really does is highly geared and it really delivers significant increased cash flow, so and what we've demonstrated to ourselves both with la Montana and Jumbo Sayiid is we certainly I know the hour.
Basic approach to mining we understand the capa business. We've proved that we can operate both high grade complex underground mines copper mines in the form of Jumbo side and also a low grade super pits like Lamar on us So and we see this as.
Is giving us a real into the understanding of the Central African.
The copper.
On belts and again, you know I think with some of the geopolitical.
Political developments in South America, you're going to see.
In our pivot to some of the other.
Copper.
And doubt in doubt.
<unk> of the World and we've got that.
Net interest and in the.
And knowledge in the Pakistan a reach.
A region, which is highly prospective although again challenging address and now with the work that we've done in.
In the central copper belt, where we're much more comfortable about continuing.
Continuing to explore and invest in and net part of the world and and we also have a joint venture in the making with modern in the.
And the Arabian shield.
And we've been working with the Egyptians on their latest third round as well. So thats also a copper gold zone.
We'll continue to you know.
Finally, our own gold gold and gold copper opportunities.
Okay excellent that's it.
Yeah.
Yeah.
Okay.
Our next question comes from Jackie <unk> 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 presentation that you just gave me you've shown a lot of different.
Exploration opportunities and initiatives that you're working on can you maybe help just a pause.
Cut through a little debt what.
What might we expect to see in your next reserve update and your next life of mine plan or a new guidance can you maybe give us a.
On ideas of which of your exploration opportunities might start to show up in your numbers.
Sooner so Jackie there as you know on and in the legacy Randgold assets, we had a system, that's 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 are on quota and.
And and Kibali, we can show how we enter convert ounces two or three years ahead of us.
What we've been working on in the Greater Barrick Group now is building that same sort of geological.
Geological competence to be able to deliver that and and integrating and bringing back the geologists into the business of money.
And as you know.
We've made a great.
Great progress in Tanzania.
And where we can see that we will continue to replace the ounces that we're mining and <unk> 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 our festival integrating.
The exploration group back into partnering with the mineral resource management group and and as you would have picked up in the messaging today is that we're starting to look at 15 year Horizons in Nevada gold mines, because remember that.
It is a very big operation bigger than most mining companies and and again it consumes a lot of gold so we need to be investing and we need to have a longer runway.
And being able to manage debt business successfully and we certainly seeing that now and we the objective of showing you the future is important because.
Again, what we what you can expect is.
Is the continued roll forward of our 10 year plans.
And as have 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 it 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 answer a billion dollars and really that.
Allows our free cash flow growth.
Of course that 10 year plan is a foundational base to our full.
Full commitment to grow further value.
For our owners and other stakeholders and that that will come from.
The new exploration discoveries again, Nevada is very special and net 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.
The potential to discover not only to extend and replace the ounces. We mine on our brownfields basis for two to make significant greenfields exploration and that requires a real investment in R&D. The real you know creative side of geology and exploration.
And then of course, there's the the.
The easier projects to grow lock Pueblo Viejo, we're unlocking that constraint on.
On the storage facility.
Really unlocks an ore body, that's already drilled out.
And then you know the.
The valid areas is just more cash flow effectively oh, it's not right up in AR.
Number one.
Part of our components, but we are very committed and again once more or moderate discovery within tracking distance of valla Dara is very material for us and again I need to remind you we've got a full.
Processing facility, which can manage just about any type of metallurgical or 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 our geologists are we challenging our geologists to get beyond just <unk>.
On a drilling on the edges of ore bodies and go out there and and so the first couple of big holes. We've drove the one on a reported you on Lama East.
<unk> is a is one of those results and then we are very busy 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.
In the EMEA region, and and of course, we've got Darden on which we spoke about.
And that is a big resource stoller, but bit of a way to go before we are absolutely clear about the geology and then I would like to believe that you know are all a settlement with Papua New Guinea and <unk>.
And proving to the market that we know how to manage even in that part of the world because that part of the world is largely under explored.
And and again Ah.
Offers enormous opportunity too to discover tier one.
So that's why and again I think we our first focus.
Get this business back on track.
Tidy up the portfolio to quality assets deal with the.
Our legacy liabilities, which we've made progress on we have certainly haven't.
On a 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 agile leadership and now it's time to focus on our future and that's something that as you know.
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 build on a sustainably profitable strategy.
Thanks, very much Mark Thats really helpful color.
Our next question comes from Tanya <unk> of Scotiabank. Please go ahead.
Great Good morning.
Good afternoon everybody.
Just a couple of questions if I could I just wanted to circle back on.
And just wanted to ask how long with the RAF tank to GAAP.
For capacity as six months.
And hopefully it ramp up.
Tanya Yeah.
Good morning to you.
So as you know.
It was six months.
To really get this and to everyone on to on track to start the operation.
And and then a number another six months in fact in 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 that.
The big that is not the challenge the challenges to get from where we are today 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 the phone.
For implementation agreement and are dealing with them.
All the various.
Various agreements that one has to negotiate and settle to be able to start operations, we have barrick and be enel has the operator ship.
And so it's very much in our control, but this time around we have a very equal part there in the form of the state two and with a real interest in this asset to be able to work with us to get this thing done so.
So that's our timeframe. So if everything works really well, we'll we'll be there and are starting to.
Ramp up in quota for that.
Docs on a bit we were modern he start that ramp up in the beginning of next year.
And just that the cost that you're on your partner I'm gonna have to incur to get this mine up can you just give us a sign.
Those could be on.
That'd be equity accounted.
So it's.
It's it's a it's we invest in it we are finding it and.
And we recoup it as part of our so we recoup the capital and then after capital we share the economics for.
53 per cent, 47% in favor of of the government of net the key is the.
The economic.
Flipped.
For us as you know and of course, we've got the operator ship so.
It's around $300 million, including the money that we've already spent to get it back up to production molecules on the core mark ever got it more or less right.
Hi, Mark that's right that's correct.
And then when it's on that Graeme is going to be equity accounted.
So it just takes last year, there to your Investor day, and we get recoup the capital channel consolidation.
Yeah, we'll move from proportional consolidation to equity accounting.
When we change guidance.
Okay, great and if I could just you know on most of the DRC and I'm, just trying to understand and appreciate mindset.
Average possible capital then play on.
Just trying to understand.
Just your joint venture partner has given us on timeline in terms of getting cash out on <unk>.
500 million paid on SAP.
Coming through in March.
So on an installment.
Can you just give us an idea what it.
Happening is that no longer the case, we're not gonna haven't found that anymore and also on my understanding was that we needed to have them.
Our net debt.
If we wanted to put up per minute mechanism in place to get the money out seamlessly can you share.
Some of that for them.
Telling you they'd be just explained to you. So the first of all day all she doesn't have exchange control approval. So it has never had it there is a glitch in the.
In the 2018 mining code, which by the way, we all operate under under protest.
And on top of that.
Our joint venture.
Partly is correct, because we give them that guidance.
But you know the expectation of moving from this.
On paralyzed government situation, which we've endured for.
Eight months now a little bit over eight months.
<unk> has been you know we've been expecting it to happen and it hasn't happened as quickly.
As we expected it and even the low.
Appointment of the.
The new cabinet, which as I indicated is now supported by a majority in parliament and in the Senate.
Net cabinet was only.
Sworn in la.
Last Thursday evening, so they've had their first cabinet meeting on top of that we have had a special committee.
On formed.
By decree to engage with the industry not only the kibali.
And to ensure that we we.
Debt in the absence of the authority to do such that we do have an authorized and what's the right word.
Committee authority to be able to process and engaged in finding a solution and really the solution is about we don't want to none of us want to do special deals.
And anything we want the right to repatriate funds.
Funds not to take them out just because we feel are taking them out. They they are monies that have been returned as part of our revenue and our commitment to returning.
On the revenue from sales.
To the DRC, but we wanted to use them to do three things on.
Of course, it's very important we pay back the debt that debt comes with and most answers instances interests. So it's in everyone's interest excuse the pun to pay the debt back so that we can get into a bigger tax position everyone benefits.
The 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 in the first place and and when you pay dividends of course, the in country shareholders benefit as well as the government and treasury because of the withholding taxes. So you know it and so there's no argument about debt philosophy.
And and it's just about.
Making sure that we do it in a proper way and as you can imagine this is an important.
The factor for all miners in the D. R C now because.
Even the copper miners after the fill up and in the copper price.
<unk> free cash and want to be able to address and then there's been a lot of capital spent in and the Katanga region. As we did in Kibali. So that's the background and and the money is in our private bank accounts, it's not under threat no one's tried to take it from us and it's been a very core.
Real and professional engagement in and where we're absolutely confident that we'll get to the point, where we returned to the the normal operating process, which we have all become accustomed to until the 2018 transition.
Okay. So we shouldn't be.
That's on whether these banks actually have your funds on deposit.
Thanks, and your private bank accounts.
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 the various ministers as well as the President's office. You know we were very outspoken about the 2018 code in and the fact that it was an attempt to sort of aggressively harvest something that hadn't even been invested in and now we've got you know two years.
On a bit more than two years on and we've got all these super commodity prices and we've seen no invest investment into the DRC. So you know there is a real desire and end of.
Our commitment to two work at at attracting new investments and I must say the new Prime Minister is a.
A young and energetic and very focused person from the industry.
And I've got high hopes for for the mining industry in the DRC.
Okay, and so should I think of it that we aren't in any given this money out in instalments and wasn't mentioned senior loans.
Coming out of Canada.
You've got of course, if you've got lots of debt.
I mean loans it will come out quickly because we want to pay those loans off as quickly as possible and everyone understands is a benefit to all the stakeholders, both government and shareholders and then the.
The rest are we want to be able to continually work with it because you know the DRC has never been a country, where you worry about your money because it's never had the exchange controls.
And so people don't make a big fuss about whether they've got the balance a big balance or small balance in the country. We invested in U S. Dollar accounts in international banks within the DRC. So it's never under threat and then of course.
It will support the dividend policies.
That will come after the debt recruitment and and and we've what we've done in Kibali specifically.
Anglogold Ashanti and ourselves is we've certainly indicated that we would be happy to pay some advanced evidence to ensure that our partners to keep it gets some benefit why are we paying down their loans.
And so can you just confirm that for me, Matt that we cannot meet parliamentary approval for many.
Net mechanism in place to get this out so no because we've got this special committee.
Pining on the process, but at the same time, we also need to take away the.
The what's the right word the contradiction in two articles within the law and that again is part of this process and it and again, we couldn't get it done when we didn't have you know alignment within Parliament would we certainly have now.
I just had one other question just on Q2. It appears to me that with all the maintenance shutdowns that you have several assets on better grade profiles on the second half of the year Q2 to cash.
Should we be weaker than Q1 on a production basis is that something that I should think happens on a fair.
Sasha.
So.
Sort of let's work backwards, but.
So.
Really if you look at our guidance is for point for two for point 7 million ounces for the year.
Midyear, we gonna be at.
Half of the bottom end of that guidance and then we'll fill up in the second half. That's that's the sort of guidance we're looking at.
Which will take us up well into our.
Our guidance.
And so so similar.
Similar.
The outlook in quarter two as in quarter, one if it's if it's soft it's really a small percentage.
Percentage, it's very it looks very much if you take the.
The four point for which is the bottom and our dog divided by two that's more or less what our target is for midyear.
And that's on their Atkins.
Great. Thank you so much on good luck on that day I think.
Doesn'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 for.
On a per Ger and restart I'm looking at like reported COVID-19 numbers for seemed really low there is a fairly significant recent jumped on the numbers.
Boots on the ground or at least you know.
Communications for staff.
Right.
Is that.
Is there any kind of COVID-19 challenge that maybe.
It puts a little bit of additional kind of challenge on the restart of Parker.
So mark.
I come from of Delta.
And so as many members of my team with numerous Pandemics viral pandemics not just COVID-19, and the best way to death.
Advantage these per day per day mixes with proper planning 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 capacity back into program itself.
That's a very real focus for us.
Mobilizing the ability to do testing, we are we have testing facilities and all our operations now all right adjacent to them. Some we own in semi in partnership with.
The local authority or the National authority across.
Organization and we are currently as we speak mobilizing laboratory into program and and again.
Making sure that we have adequate antigen tests, which we've which have become extremely.
Accurate.
Over time, and then it's all about our reach out.
Street, sorry into the communities, we've started debt and and we you know we will treat pallbearer as we.
Start employing.
As we do on every one of our operations of course as you've seen that the international community has reached out to our to pepper and you're going to need to support an early vaccination process and again I mentioned in our presentation that we have a global.
Vaccine initiative that we're working on.
And where we can we are you know we are facilitating 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.
We do that as well so yeah, we will and to think that death.
Definitely COVID-19 is it challenging situation in Papua New Guinea, and again is that countries.
In our infrastructure and and health facility.
Our facilities are not the best and so you need to manage it with you know what.
Our real focus.
Alright, thanks very much for that.
<unk> also had already been asked so thank you thanks Mark.
Our next question comes from Kip keen of S&P Global. Please go ahead.
Yeah.
Yeah.
Thanks, Richard Thanks for taking the question.
Just looking more generally are on in terms of acquisitions.
And if you look at the market out there and what's available.
Whether it's gold or copper company minor.
They tend to look at fairly conservatively at share what's available out there that is not much. So when you look at the earnings potential.
Potential acquisitions out there.
How do you view the market in terms of what's available.
Yeah, So kipp.
It's a good observation I don't know how to answer that question.
You know the there's still consolidation in my mind required, particularly in the gold industry.
And and again.
Because the problem is that a lot of the high quality assets on bedded in individual companies. So it's hard to get a deal that brings a significant.
You know our portfolio with it.
Again, I think you know to be able to do.
Value, creating M&A.
One needs the support of the fund managers and investors otherwise you know, it's a better option to continue to explore on and hopefully I've demonstrated that barrick real focus.
Over the last six months once we got are settled.
Israeli building that capacity for organic growth.
And so and then on the copper side too you know, there's there's very few pure copper plays.
I. Thank everyone again has been caught flat footed in this copper.
Yes.
<unk> as.
As you know we've been talking about it for a long time and we've certainly focused in on our portfolio to make sure that it's.
Efficiently run and we maximize the returns on a on a rising copper price again.
We've invested in additional expertise and our exploration teams to be able to build better copper exploration strategies.
And also through.
Through the whole spectrum of various gold copper geological environments.
And but at the same time in in markets. There are always opportunities to create to benefit from.
To do deliver value we've proved that.
Through our history, and so Barrick and Randgold.
Have delivered significant value through opportunistic.
M&A transactions throughout their history and.
So you know we constantly looking at opportunities.
We run a ruler over any new now.
Non cement any new development.
And what's important is we have the skill base and the balance sheet to be able to explore.
Exploit.
An opportunity when it does arise and we will continue to do that.
We are kept honest by our filters Ahmad add kipp without we're not we're not growth.
We're not obsessed with growth, but we are obsessed with creating value.
Through growth.
No.
Well in advance.
Given the dearth of discovery in the past say 10, or so years I mean do you put more focus on exploration. Obviously, you have done to a degree but it doesn't become a greater focus.
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.
In in.
Barrick and Randgold resources and the value creation from our.
The primary discoveries, but also equally.
Both companies delivered significant value by post acquisition.
Expansions and Kibali is a classic example, and in the DRC.
So that's really that there's you know the best way to create real value in this industry is to make your own discovery.
The second best way is to find somebody who's made the discovery on it hasn't worked out how valuable it is yet.
And so therein lies the importance of having a highly skilled exploration and mineral resource management team and ones.
In one's business.
Okay. Thanks.
Yeah.
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 we did talk on bigger copper portfolio earlier, and you mentioned reco kick in Pakistan. So just a couple of questions first of all can you remind me where we stand on that potential award settlement and the second part I guess this is more philosophical question.
And again that project, if I remember had decent infrastructure pretty good geology.
But it's also on a pretty tough country, but that's something years, you've said in the past you've had the skills to deal with or are you thinking more now philosophically, that's something you might like to develop 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 a pretty scarce.
Maybe there's a partner or somebody else that can come in and develop but just philosophically. How you look at something like that so as you know one of the philosophies that we brought.
And Barrick.
In 2019 was.
I'm not a big one net and that takes on host countries in a thought and and so we reached out on the back of what John Thornton and already started to.
To find a solution that was a constructive with the Tanzanian government and we've been very successful on that.
Again, you've seen us manage situations, whether it's historically, we had issues of Mali, because governments are not there for love anymore. On this button will do and how they move around mover turn over quite a lot.
I think I've worked with block 20 different finance and mines ministers in Mali.
<unk>.
And we did the same in South America, both on Argentina to build a stronger more transparent engaging partnership with both the Argentinian federal government and more importantly, this on one <unk>.
Provincial government and we did the same in dealing with the legacy challenges around pasqua in Chile.
And and you know we've built a much stronger better relationship.
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 in and Rick Burdick, and net where there is an award out there. It's a 6 billion dollar award.
It's a it's shared with our partners Antofagasta, we know to go and tried garnish net amount of money from Pakistan, which has just been led $6 billion by the World Bank IMF.
As a hard task and we believe that it's a world class asset as you point out Brian and.
And then there's merit in and finding a way where we will earn back on award and you know end of.
If and.
Antofagasta Con get their head around operating day, we'll find a no work to find a way to to compromise and settle on their side of the.
Of the.
<unk>.
And and you know that debt.
That area has got enormous mineral endowment, both gold and.
Copper and and other.
Rare elements and and and metals so.
And as I've experienced in my professional life when I first started out in sub Saharan Africa was almost a noga place and today, it's very easy to operate and so you know as the world moves on and and I think that you know we've had very constructive and in discussions with the.
With the Pakistan and Bellucci saw on star and authorities and end up.
Would you know I can certainly say barrick.
Prejudice is to find a workable com.
Compromised solutions debt 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 theres very clearly on this.
Sentiment is not there the award as they've.
Been a you know.
Approved and that's how do you how does Pakistan deliver on that and again and.
Just building on on my own personal.
View about.
Responsible mining and how we deal with our host countries, but the same we've started that even before.
On the we took up the Randgold deal.
And it's much more constructive to do that way.
People benefit out of paying.
Paying office.
Sort of judgment block this.
But again, there's a there's water to run on flow under the bridge and that.
We've got you know a little bit like the program I mean Pablo is a.
Pretty challenging engagement, but the outcome our hope.
It 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 could potentially be meaningful I mean that option value is a good way to look at it you know.
It's theres a value and what we prepare to do is take a long dated.
Our position as far as getting full access to that value.
Great. Thanks, very much I appreciate the color on Mark Okay right.
Okay.
Our next question comes from John Tumazos of John Tumazos, very independent research. Please go ahead.
Congratulations on all the great work Mark.
I'll say outlook.
For just getting around it.
Drilling all the meters you want a true.
Exploring and refreshing reserves per share.
So Mick.
All right.
Well as you know we haven't stopped.
Fundamentally believe in managing by walking about and.
And we've continued as normal.
We've just finished a you know as part of this quarter. One results. We had full management reviews with all our operations and an on site team effectiveness and.
Strategic review workshops.
So it hasnt.
You know we've had to be a little.
Flexible on the way, we do things.
On the drilling side.
The big challenges to get through companies to work for us.
In Africa, we are.
Both long year's biggest client.
And have been through all you know every part of the cycle.
Because we believe in.
Investing in our future.
We've worked very hard to get drill rigs into.
On to the Andes, 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 just.
Completed the drilling some confirmation re drilling on the Chilean side in particular, but again, we could we could do with a 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.
Fantastic example of the 10 NASA T. That's required to get rigs into some countries, particularly over a process like this has been Saudi Arabia, but again you saw it today the results of that effort to bring rigs into the country.
And get the drilling started so those have been the biggest challenges again.
In Nevada.
We've we've had to work much harder to build a more business relationship with the drilling companies I don't think we're quite there yet, but you know we are prepared to invest and drilling.
Companies to be able to get them to a level, 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.
The business.
So you know I think in summary, the challenges have been the Andes.
For many reasons because you know Chile is also <unk>.
Battled with the COVID-19 pandemic in Argentina as well.
But.
Again on I'm pleased to say that the teams have made progress and we do have.
Drew.
Drilling ongoing we've just mobilized where last year in Donlin, we didn't have a single COVID-19 case touchwood hopefully it continues this summer.
And so we've just mobilized the rigs into into Donlin, we are D. Mobilizing the rigs that are done in a in the Andes right now because we're moving into winter.
Mark Im sorry.
Because 10 years ago, it was hard to kick the tires for the big trucks.
Maybe once or twice for generations. So Joe cyanide was short what else besides drill rigs its hard for you to get enough.
Yeah.
Great drill on our ships so again.
John Baugh focus I mean, what we bring is mining I, often say is all about logistics supply chains. We've got I would argue we probably got the best supply chain organization in the mining industry and I mean, when you see how they managed.
The impacts of this crisis and bold flexibility as soon as we saw it coming we built flexibility into our supply chain, we were able to switch from China to Europe back to China seamlessly on on supplies things like cyanide in particular.
And again.
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.
With a top tier suppliers.
And again.
Because 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 ransom by our long term partners.
On every aspect of it and we we run our own you know we have visibility of every single consignment. We manage every aspect of the supply chain and you know and we monitor it.
Because effectively we just move stuff as miners.
Blast.
The stuff underground ore in the pit we move it to the processing plant, we move a whole lot of stuff to the processing part to process that ore and then we ship at bars of gold just one big movement.
So I you know 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 across the Barrick group and we've gotten a lot of buying power as you can imagine.
Mark.
Made overtures for a year or two ago towards Shreveport, when copper was bottoming.
It was a good show they didn't want on that.
David a good try at the right time.
Almost tongue in cheek.
Maybe you should take a look at Ford motor as Theyre, having a big trouble with logistics for their output for.
For sure this quarter.
A large likelihood ours that buy copper vision was had merit.
Yeah.
I mean, maybe we should've done it a little differently, but it certainly what it proves.
Is that we are absolutely focused on.
Creating value and we recognize when there's an opportunity.
I think we also learned from times when we when we file on on Devers and.
But at the same time, we're not reckless in how we engage on.
Pursuing opportunities that we recognize so yeah.
There was a there was one opportunity where hunting some more now and and I think what hopefully shared with you today is that we're also investing in our own future which is.
And my history in my career.
Korea, that's always been the biggest value creator.
Mark sometimes the other guy knows everyone has asked us for good.
Commodity as well.
So once in awhile back on.
On the same now.
Keep trying exactly.
So how do you.
<unk> jewelry.
[laughter].
There are no more questions from the conference call.
Alright, well. Thank you everyone net was a quite a conversation and I really appreciate your input and and and for you to stay in with US in this conversation again look forward to.
To the next time, we talk and and hopefully.
Everyone will make an effort to join the Nevada gold mines team minutes 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 detail of what that team has achieved with a set of rarely.
Hock loss 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 sign off please feel free to to to reach out to the team. So again. Thank you.