Q3 2021 Barrick Gold Corp Earnings Call
Ladies and gentlemen, thank you for standing by this is the conference.
Operator, welcome to the Barrick cut 2021 third quarter results conference call.
During the presentation all participants on the phone I didn't listen only mode.
Following the presentation, we will conduct a question and answer session.
If you have a question. Please press Star then one on your Cyrusone keypad.
As a reminder, this conference call is being recorded.
And a replay will be available on barrick's website later today November four 2021.
I would now like to turn the conference over to Mark Bristow Chief Executive Officer. Please go ahead.
Thank you very much and I'm going to say.
Say, it's a.
Very good morning to all of you.
Olivia it's good afternoon.
Sorry, and welcome to the LSC again, that's a China.
So not to be.
It's almost a little bit plant, there and maybe a little bit what for some people but.
Good to see and thank you for coming to two two share this time with us.
And also good afternoon to those.
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Further east of here.
Very good morning too.
Our friends and colleagues who are back in the states.
I welcome you all to barrick's quarter three results presentation.
As we know the world is.
<unk> been living with Covid for a year and a half now.
And even though the vaccination fought back has had some success.
That patent domain continues to impact our lives.
Our business is nice.
You recently through the current supply chain process.
At the same time the mining industry has also had to accommodate the promise he of ESG is an investment criteria.
While struggling to meet performance focused on the next quarter.
And perhaps not surprisingly many companies, including some industry leaders.
Aching promises that seemed to be based on wishful thinking.
That technology still to be invented answer is yet to be discovered.
So I hope that the next generation of managers, we will find solutions before the delivery deadlines Dawn.
On the other hand has always been.
At contrarian and as I will show you today the promises we make.
It Ain't good in and guided by commercially and scientifically achievable plans.
Please take note of course Yuri.
<unk> mint and for those who would like to study it in more detail. It is available on our website.
So.
Prominent among those plans.
As you are carefully considered and rigorously implemented sustainability strategy.
Embedded in every part of our business is a function, which is not surely a corporate responsibility.
But it has to be earned at the site level.
Central to that strategy.
Our concept of partnership.
This is no new thing.
Barrick has always known that to be sustainable it must be trusted and valued in a long term partner to its wide range of stakeholders, notably its host countries and communities.
Our investment in these partnerships take many forms and.
In addition to the community development programs at all our mines.
We build the skills and capacity of our host country workers.
And vendors to multiply our positive impact on local regional and national economies.
Our policy of prioritizing local recruitment has produced workforces dominated by host country nationals, including and probably more importantly at the leadership level.
Last year, four and a half billion dollars, 75% of our total procurement spend.
Was invested on goods and services from local suppliers.
We engage at a local level without community stakeholders.
And then open and transparent manner to discuss the minds, the risks and opportunities and resolve problems.
The World has come a long way from the days when our cooperations only responsibilities.
We had to make a profit paid tax and obey the law.
Barrick creates real value for its partners not R&D through the economic benefits it shares but also through its conscientious K.
All of their environment.
Our employees by the very nature of the way we do business.
Also as stakeholders in our business.
And their wellbeing is a problem con said.
Although our safety trend has improved steadily since the merger.
We experienced two fatalities during the past quarter, one I spoke to you about last quarter.
And one that happened subsequent to that.
We held a group wide workshop to analyze the causes of these unfortunate and tragic events.
And to develop actions to prevent a repetition of such events.
As far as COVID-19 is concerned.
We continue to manage it with limited impact on our operations so far.
The priority now is to get all out people vaccinated.
To date, 35% of our employees have been fully vaccinated, while an additional 13% have had their first job.
The Latam region is leading the vaccination drive across the group with 67% fully vaccinated.
Even with the delay.
From Kovacs from the <unk> program, the IME vaccination rates are progressing well.
However backing.
Back in the United States, Nevada Gold mines is lacking with at least 32% either partially or fully vaccinated.
We believe that this event is primarily due to vaccine hesitancy and our team continues to sensitize our employees to the safety of the vaccine.
On the environmental front.
There were no class one incidents during the quarter.
Our water management strategy to minimize fresh and maximize recycled water consumption has delivered an increase in the recycling and reuse right to 283% from 78% in 'twenty 'twenty.
And we are on track to achieve or even beat the target of 80% we have set for water efficiency across the group for 2021.
Also during the quarter and independent human rights assessment and training program was completed at Pueblo Viejo, and Lula gone quarter, and it's now being rolled out at the other operations across the group.
We have also set 30% G H G emission reduction targets for 2030.
And one thing that separates us from others as I pointed out in my introduction.
As we have this road map, which shows how we intend to get there.
It's important to note that this is based on projects that have been that have been either implemented or under construction.
And does not require a change in our production profile.
To date, we have a clear roadmap is illustrated here.
Two of 25% emission reduction.
And we are confident that we will at least.
Deal with the other 5% remaining well before 2030.
These sort of things that you wouldn't see on now is.
Sandvik joint venture for instance, on the ground of underground equipment, a lot of equipment related reductions because we're still in the process of developing that technology to to ensure that we can deliver against our plans.
Yeah.
A question that was asked of me earlier today was how much is getting our cost.
And the critical answer from our point of view is this all comes with better efficiencies and lower operating costs.
It said January investment not only in the future in a responsible future, but also in a better business for Barrick.
Operationally it was another solid quarter. Despite some challenges and it was also very busy as you can see from the long list of Kpis on this slide.
The African and Middle East and Latin America regions are both trending towards the top end of their gardens, while Nevada posted a strong quarter on quarter improvement, albeit trending towards the bottom end of guidance.
Altogether Barrick is well placed to achieve its annual production guidance.
There was also a good quarter for our exploration teams as I'll show you later.
More than two years into the merger, we're now pretty much where we wanted to be.
With a strong foundation of World class mines.
And a robust pipeline of quality projects and prospects.
Notable features of the operating results results, although well contained costs the ramp upset valid era, and barley, and Hulu, Nevada gold mines, the effective management of the fallout from the failure of the goldstrike more and.
The significant contribution from our copper operations.
All in all we're set for what should be.
Strong finish for this year.
The financial results.
<unk> robust free cash flow, which continues to support an already very strong balance sheet as well as the exploitation of growth opportunities.
It's worth noting that the final tranche of the $750 million return of capital to shareholders.
Combined with our sustainable quarterly dividend of nine <unk> per share.
Represents a record total cash return to shareholders of $1.4 billion during 2021 for Barrick in other words Barrick has never returned more to its shareholders than that amount in a single year.
We turn now to operations.
Starting in North America.
Nevada had a slow first half of the AR as we explained on the back of our decision to bring forward the major planned shutdowns into that period.
However, despite the failure of the goldstrike mol, which repairs were completed at the end of quarter three it clawed back some production with a stronger quarter on quarter performance in quarter three.
Which is a real tribute to the expertise and the ability of the Nevada Gold mines management.
Hemlo, and Canada was negatively impacted by COVID-19, as I'll explain to you later.
But up in Alaska, The Donlin project continues to make encouraging progress.
In Nevada, we're showing growth across all four of our complete core district.
With our exploration teams succeeding in their drive to reinforce and extend the current life of mine plans by finding additional ounces.
While also hunting for new Standalone discoveries.
And Collyn.
Boosted production and lowered cost despite as I said earlier that the all the time on the goldstrike roaster on the back of the improved throughput.
While the one goldstrike nor was done as we explained last quarter caught and focused on processing all with higher carbonaceous content.
And you know that often we are constrained because we have to blend. So we took that higher carbon con.
Content, all with higher grade and because we had a longer residents Tom on the lower throughput. We are about our ALDA be able to we were able to process it with better recoveries.
We have stockpiled on the other hand, the high grade ore with lower carbon content and it's that all of that we now processing through the plant and its that or that's going to drive the significant improvement in production for quarter four so a very efficient way of handling what.
As an unprecedented failure in one of our big Sag Mills.
Yeah.
North level is on track to deliver its maiden resource by the end of the year and this is one significant benefit of of the merger of the merger of the assets between Barrick and newmont, the past quarter delivered a world class intercept.
In fact, it's the best intercept made in call in to date.
And the definition of a very high grade zone within an area of continuous mineralization, which is open in all directions.
Follow up drilling is now underway with an additional step out scheduled for early next year.
And this is part of a bigger upside potential of the greater level complex, which continues to be highlighted with our ongoing work around the footprints of legal and test.
The potential and there's greater legal area stands at approximately 25 million tons had seven to 12 grams.
With more to come as a very large resource and reserve definition drilling program continues to expand the existing footprint in all directions.
Staying in the Carlin complex.
Underground resource drilling at rent.
Has confirmed our model and the significant upside potential on the western side of the deposit mix to the infrastructure.
And I must say this is an exciting time for <unk>.
Exploration team, but we had this big development into ran called the road to rent and at some stage some of the people at suggesting maybe it was a road to nowhere, but with the latest results were Super excited and again, we expect this project to also report.
A maiden resource by the end of the.
While we work on the technical aspects of the opportunity in other words. It is very close to infrastructure and has real potential to add to the profile of the collyn.
Life of mine plan in the short term.
After the quarter MGM completed as you would've seen the south Arturo Lone tree asset swap, which streamlined its portfolio and secured the 40% of south Arturo that it did not already owned.
Recent drilling has identified a new or controlling structure that could again extend this mine life.
Of this asset.
Turning to Cortez last quarter Cortez was also impacted by the goldstrike more failure.
But like Colin management mitigated the spot prioritizing the protesting of underground oxide ore at the oxide mill.
And stepping up our heap leach production from the open pit and then N succeeded in boosting production by nearly 20% over the previous quarter.
The resumption of the processing through the goldstrike Moe and a continuing increase in heap Leach production has said Cortez up for a strong finish to the year as well.
At Cortez Hills underground testing of the Hansen and Vudu fault targets below. The mine has also proved to be successful opening up the area for expansion, both along strike and down depth.
And then over at the gold Rush.
Project The U S Bureau of land in mines finally, published a notice of intent in August and following the completion of the public scoping exercise a draft environmental impact statement is being prepared for publication in January next year.
This is a feasibility study showed.
As we expected that the project covered by the plan of operations in the E. R. I S comfortably passes barrick's investment filters.
We have said the first metallurgical batch sample through our goldstrike roaster and results were as predicted and all of US and are on track to increase the underground reserves with our year end reserve resource update.
This is obviously going to be a very valuable addition to the Cortez complex and one that offers further upside and which will support cortez as tier one status well into the future.
We continue to explore options for linking gold rush in the nearby formyl through underground access.
[laughter] formal is not part of the Nevada gold mines and for the time being is still owned by Barrick.
At present conceptually, we envisage completing the feasibility by developing across the Nevada gold mines Barrick border.
<unk> 24 2025.
First potential mining a formal or is scheduled.
Towards the end of our 10 year plan.
Turquoise Ridge.
Is another of the tier one mines and MGM, but the luxury of its high grades and low cost covered up.
Jude of citizens in the past and bringing it up to our standards has been a big job.
It's been a job, which required a geological operational and cultural transformation.
It's been improving steadily since our intervention and there's going to be a real value driver for a N G M in the medium term.
The commissioning of its number three shaft scheduled for late 2022 will be a game changer by increasing the underground mines hoisting capacity and reducing haulage distances to Canada with a significantly improved.
Ventilation.
We have been.
Mentioned earlier, we've been Trialing for electric trucks at Turquoise Ridge.
And they are always great when they work.
But we havent achieved the availability that we need yet and then this is an important aspect of what the mining industry faces we have a partnership.
With Sandvik and a T R. Despite this ramp up our drive is also essential.
Centrally on R&D.
The laboratory and and and our commitment to sandvik and likewise to sandvik to US is really we need to persevere with this work as I said when these trucks work they are amazing and there's lots of little things that we can improve on that.
At the same time as part of the commitments and because.
Supplied us with additional conventional trucks, so that we can keep going with this.
This experiment and we look forward to the time, when we have and we've got five of them. So it's a very significant commitment from.
From a N G M N barrick as well as from the Sandvik Corporation.
[laughter].
In the meantime exploration is revealed significant.
Angel and the gap between Turquoise Ridge and twin creeks and we've now identified some very high to in fact high priority targets for testing this quarter.
Personally I'm very excited that our prediction that this could prove to be one of the most prospective ground positions in barrick's portfolio looks to be on the marks are let's watch this space.
And these are [laughter].
In Gm's, two smaller mines Phoenix as a low cost producer and a solid performer with a 10 year life of mine and has it and as it's shown again this quarter, it's a very consistent deliver our values and it's also a copper and gold business.
We're currently looking at back at the tailings dam because it does contain some other strategic metals.
Long Canyon on the other hand is a very high margin operator has been for a while but it's got limited lots of opportunities and we don't see it as a long term asset within MGM, and we will be reviewing and making a decision about its future early in the new year.
We move now to Canada.
Hemlo.
Where.
The operation has was significantly impacted by Covid, 19 restrictions, which slowed down the ramp up of underground development.
As you recall, we made a decision to bring and then Australia, an underground contractor to help us transition the mining.
Of old style mining strategy into a more modern focused mining exercise as we have across the Barrick group and in particular as we've proved.
To be will clause so now.
Breaking our operations.
It was a combination of the Canadian restrictions and the very draconian approach to COVID-19 by the Australians we couldn't get the people and in a proper way and so it really caught us and and so we're now starting to get that right, but we've lost an opportunity.
T. Because as you know we had closed out in the open pit, we are moving to underground and so.
First we back on track.
It's going to take us some time as much as 18 months to really get us back in and pick up this momentum hemlo for US is a significant what we define as a strategic investment to things as you know I'm very bullish on the Canadian market and and Barrick is under invested in it.
And.
And secondly, we need to develop an expertise to two to manage operations in in Canada.
One area, where hemlo has delivered is in confirming its resource growth potential.
Infill drilling as you see on the Eastern zone is on track to add a new mining area with exploration also focusing on the western limits of the deposit to expand the ore body.
And then further to the.
[laughter] East.
On the other side of the.
The old David Belmond, we have also a focus for exploration and and if we can deliver what we think there is a.
We have no doubt that it would lead to a significant transformation of hemlo and just you don't know hemlo.
Got.
It's sort of lived.
In spite of what it did because of the very high grade of the ore body and and so we've found just focusing in on all the information and consolidating it has pointed us into some directions that we think could deliver some significant additional resources.
Also as I touched on earlier.
And I've said many times before.
I believe that Barrick is under invested in Canada.
Which is our home country as well as a mining friendly jurisdiction.
Exploration and new business teams.
Looking for opportunities to add or consolidate ground and one or more of the very prospective Canadian gold belts.
And then over to Alaska and to Donlin Gold, which is one of the largest undeveloped gold deposits in the world with the reserve potential of well over 30 million ounces within one single large open pit.
Drilling this year is focused on understanding the geology, and we aim to update geological geotechnical and resource models. During the first half of 2022 and.
Currently the open pit models are still data constrained and the Donlin Board has not proved on the back of the recent work funding for additional drilling and study work into 2022 prep to prepare for further advancement of the project up the value curve.
Staying in the Americas, but moving to Latin America, which is a region full of opportunities.
But as you would have appreciated over the last few months also some really significant challenges.
We've made a number of solid strategic and investment decisions to maximize the former and minimize the later.
And the ramp up of the new Leach pad is driven up production that valid era and the planned expansion of Pueblo Viejo will extend this tier one minds loss into the 'twenty forties and beyond.
And we expect to convert to around 9 million ounces of measured and indicated resource to the mines proven and probable reserve on the permitting of the new tailings facility.
And then the sale of Lagunas Norte I has enabled a further rationalization of our portfolio in this region and again realized value and removed some significant liabilities from a non core asset.
And these are the Pablo <unk> operating results, which confirm that it's 2021 production is trending well within guidance and costs towards the bottom of guidance.
Construction of the processing plant expansion is progressing and completion is expected by the end of 2022 although there has been as I indicated in my introduction some impact on the delivery schedule because of Covid related issues.
The mine is also negotiating additional tailings capacity permitting with the government and local stakeholders.
The Dominican government.
And Pablo I have agreed on a government led independent strategic environmental assessment of Pueblo Viejo mine life extension project.
As a reference for the assessment have already been published by the government and the 10 firms that have been invited to have submitted their proposals and we expect the selection of the the the successful but this week or next week.
The updating of the PV District Geological model earlier. This year has also led to the definition of a series of structural colored Cora doors, which have extended the potential between zambrano, which is a very significant X.
Operations target and a new area called Arroyo del Ray we.
We have started drilling.
On that those new targets and we expect to get start getting results. When we speak to you early next year.
As I noted earlier.
<unk> had a good quarter on the back of the new phase six heap Leach facility, which was commissioned in quarter two and the work has already started on phase seven expansion, which will further support its bold back to its historical production levels.
And you would remember the objective of this is to re establish a new infrastructure for the next 10 year life of Valla Dara.
As you all recall valid erez connection to Chile's National power grid was delayed by COVID-19 restrictions and construction has now finally being completed and commissioning is expected in quarter four.
This cheaper cleaner energy source is expected as you would have seen on the roadmap to.
To reduce valid areas greenhouse gas emissions by around 100000 tons of carbon dioxide.
There is also schedule to beat its guidance for 2021 which is a significant achievement. When you consider the the multitude of challenges we had as Covid was first.
First impacted Argentina, and the response by the Argentinian government coinciding with the start of winter in Argentina.
Again, a great tribute to the management Argentinian management.
The passcode Lama project.
Straddles the border between Argentina, and Chile with Lama on the Argentinian side between valid era and pass car.
And this project one is that partially bolt plant and infrastructure facility, which when complete should be able to process a wide range of all types.
Pascua Lama and its many geological targets and resource options is currently being reviewed from top to bottom and we plan to be ready with our way forward at the back end of 'twenty 'twenty four.
The project faces significant technical and environmental challenges as I'm sure you would have picked up in the press.
But again it has the potential for world class status and we have options of how we can bring it to account.
Whilst we continue to focus and this will remain the case at 222 any full exploration on the sudden one province, and the valid there Pascua Lama district.
In addition to searching for more satellites for valid. There are we have also branched out across the El Indio belt of Chile, and Argentina, and a search for other world class opportunities.
We also recently extended our South American footprint, two Guiana, where we recently secured 63000 hectares of prospective ground on a third tower structural corridor within the Corona basin.
The geological and geochemical screening program is currently in progress.
<unk>, Brian Basin for those who don't know it is well known geological trend and it is very similar and geology to that of West Africa, where as you. All know we've been exploring successfully for many years, So it's fair and square.
And our comfort zone.
As you would have seen from all the press.
And I think Theres a lot of it so I'm not going to repeat at all today.
We continue to work hard to reopen the program on in Papua New Guinea, which as you know has been on care and maintenance since April 2020.
When the government declined to renew the special mining lease.
Biggest focus now is is to settle as on a sound.
S M L salad and the special mining lease and that's a combined commitment both from the government and from be Enel, which is a partnership between.
Xinjian and Berrick, which barrick leaves.
And we're all clear that we have to do is a complicated process because as you know Papua New Guineas mining code has a big focus on the inclusion of landowners in the process. We are well down the road on the console that consultation process and Barrick is part of our.
Those all to the state also had an agreement or has an agreement with the landowners, which supports that the initiative of getting.
The the mine back up and running and I think we've got to that stage, where everyone is very clear that this economy needs, which was the <unk> was and used to be the biggest drive of the PNG economy.
So.
We're very focused on on getting it back on track.
As I explained in my introduction.
Africa, and Middle East operations again proved their steady performer status and continued to deliver a strong cash flow stream to barrick as well as an abundance of new opportunities and that was the logic behind the Barrick merger was Randgold was we had a highly profitable portfolio.
A very solid balance sheet full of cash and Barrick had a world class assets and the combination of those two we would unlock as you see we're doing now the significant value embedded in the Barrick portfolio.
Failure.
In Mali Lula on Qatar.
He is heading to the top end of its production guidance and at the same time. It is maintaining its focus on efficient energy management with the planned expansion of its very successful solar power plant installation and its battery storage.
<unk>, which we've dragged across from.
Kibali, where we've really made a lot of progress in managing our PA storage capacity with a battery technology.
We see this region.
As one of the world's most promising gold districts and in a recent meeting with the country's minister of mines. He confirmed his commitment to barrick as a partner.
What I explained on our interest in continuing to invest in exploration across western and southern Mali and now a hunt for the next Lulu gone Qatar Oman.
At <unk> in Eastern Senegal kv West is emerging as a significant gold system with exciting potential to move forward to discovery status.
High grades have been confirmed.
To a depth of 200 meters and remain open at at deeper levels and along both struck distances. We will continue to evaluate this project and the other related satellite.
Targets are.
During the current field season, and we're right in the middle of that fee L season, as we speak.
And tongue on in Cote d'ivoire.
The mine produced a solid set of results for the quarter successful exploration and mineral resource management of the satellite pits at tongue on has extended its life by another year to 'twenty 'twenty four.
And our pipeline of new targets, along the prospective still below trend and proximate summit tea to the tongue garden plant has been targeted for follow up this quarter.
At the <unk> north targets on the same trend, we've outlined a new inferred resource and started step out drilling down plunge to trace this high grade shoot mineralization, which opens at depth.
We're also looking at multiple targets on the adjacent Bondi, aldi permit which could feed or by truck to tongue gone.
And then the Democratic Republic of Congo, Kibali is on track to deliver on its production guidance and it continues to demonstrate significant upside potential.
The past quarter sold a big cost improvement, thanks to higher grades and increased hydro power generation through the wet season.
And as I'm sure you all would like to ask on the cash we continue to have constructive discussions with the government about releasing the money currently held in DRC. When I say that is held in an account in U S dollars and we now have agreements in principle on a y.
The forward, including the approval to pay a dividend and we ramp and we await the final approval on the repayment of loans and the point here is that we are very focused on doing this properly. It was a situation that is caught up a bit.
The sudden move to pass a new mining code in 2018, and then the constipated.
Political management system that followed until the recent appointment of a of a cabinet that was aligned with the leader President chassis Kitty and had the support of Parliament and since then we've seen a new.
Prime Minister get appointed from the from the the mining industry and the new Governor of the reserve bank from the IMF and and we're very comfortable with the quality and the commitment of the new management team and you would've seen that being at G. G to N T N.
And cop 286, and has been a big promotion I read promotion of the Congo mining industry, and and and and ready promoting new investments something that.
It hasn't happened since the 2018 code was initially passed so where we're very comfortable and again I've been locked that the whole time comfortable we'll solve this problem and by the way we do have all the legal documentation that gives us the right to repatriate.
And the Democratic.
Public of Congo, we have a lot of.
Prospective land positions in.
And then around Kibali and and in the last two quarters with all the geologists have really shifted the balance and a 10 year plan to a point, where we have an equal amount of feed from open pit to bowl material along with the higher grade underground.
Our resources and reserves and so that's quite significant to keep that balance because it keeps the effects ability and just to give you a background.
Kibali is the 800000 ounce producer so it's one of the biggest gold mines in the world.
Brownfields exploration has also continued at Kibali.
With the follow up drilling underway at <unk>, which is a new target and again as you see this target is really starting to show a continuity, both a long strike and as well as down depth and.
And the indications are that the grades could be sufficient to support both the extended open pit.
The operation as well as support and underground one.
In Tanzania.
North Mara increased production.
On the back of higher grades better recovery rates and improved ore delivery from underground as we get this mine back on track.
We've redesigned the interface between the <unk> underground mine and open pit and achieved a better balance between the two all sources and both good coda and Rama cutbacks are currently being evaluated.
On track to deliver robust extensions to the life of mine plan there.
Mine remains on track to achieve its production guidance.
And Boolean Hulu.
One of them is one of our big success stories, two years ago as Youll recall it was a rundown tailings re treatment operation, but today things to a major turnaround effort by the regional team, which included reestablishing the shaft and rehabilitating the plot.
Got.
It is a real underground mine again.
Ramping up to steady state annual production of between 220, and 260000 ounces of gold from next year and the latest geological model indicates that its mine life could potentially extend to 2040 and b.
Beyond.
Clearly in Hulu is getting ready for an updated reserve declaration, which again like all the other major assets and Barrick expect to show a strong growth in excess of depletion.
And another success story.
Is there a little more on a copper mine in Zambia.
While we still need to unplug some processing bottlenecks.
Is capitalizing effectively on higher grades to boost.
Boost throughput in the fourth quarter is likely to be its best quarter ever.
You would have also seen the recent announcement from the Zambian government on allowing us to deduct royalty costs for income tax purposes, which will be a med carrier benefit to our cash flows out of la Moana.
We have also recently established a significant exploration team at la Manana to probe multiple opportunities to exit extend its loss.
A number of exciting targets, some with a potential for higher grades and better strip ratios.
I've already been defined and we believe that mine has a good prospect.
Joining that Premier League of African property.
Copper producers going forward.
As for our other copper operations jumbo side in Saudi Arabia, and Zaldivar in Chile are consistent performance that continued to make a valuable contribution to barrick's bottom line.
At Jabil, Sayiid low blood and load for eastern extensions have been added to the life of mine and additional opportunities for near mine growth have been identified.
<unk> chloride rich project remains within budget and on track for completion in the first half of next year.
And in line with Barrick strategy of expanding expanding its global presence. We recently acquired four exploration blocks in Egypt, preparing the ground for exploration and our perspective, but under explored region of Africa.
We are also now established a field, where our team in the country and have started remote data collection and interpretation of the geology over the permits.
As you know Barrick has a single minded pep and purpose in the creation of value for all its stakeholders.
And this bar chart shows our performance on this front since the merger.
As you can see we have succeeded by every measure.
And we will crowd in this year as I noted earlier with a record returned to our shareholders.
And even with that we're still growing the significant strength of our balance sheet.
But I would suggest that's already a history.
Our focus as always is out in the future.
Mining is I never tire of reminding people.
As a long term business.
Our success and its success.
Bonds sustainability.
Hence the constant search.
<unk> and exploration exploitation of new opportunities.
At Barrick, we manage this process through our resource triangle.
In this model I exploration teams feed a freak frequently replenish stream of Greenfield and brownfield targets into the base of the triangle.
These are filtered through multiple evaluation lies with the ones that meet all of our investment criteria.
Suddenly, making it to the top of the triangle and a development stage.
This is how our triangle looks at present abundantly stopped and well balanced at every stage of the game.
I think it's important for me to stress at the end of our presentation lock that.
But our people are the driving force.
Behind our track record of achievements.
Consequently, we see this as a key differentiator in our strategy and actively engage in all areas of our human resource plan at all levels within the business.
We believe we provide a great place to work where people are empowered as owners and all inspired to be the best that they can be.
And so and.
With a look at our five year production profile.
Like all of our plans is firmly rooted in reality.
We've added a gold equivalent ounces in relation to our copper production.
Responds to interest from investors and as normal we will be updating the market with our detailed 2022 plans when we presented our quarter four results in the new year.
With the industry's best.
<unk> asset base as our foundation.
Exceptional leadership at all levels.
And a host of high quality opportunities I have shown you I believe barrick is well placed to achieve its vision of becoming the world's most valued gold company.
And with that I'll. Thank you for your attention tension and we will be happy to take any questions and I think luvs has instructed me that I need to start here.
And somebody got a.
Michael we.
Okay.
Claudio walk them ask Siri to stick your hand up if you go to a question.
They are behind you Claudia.
Yeah.
Thanks, very much indeed, Mark Paul Gait from hospital, just one question on the on the project pipeline. When you sort of look at sort of North America square conspicuous you know the the number of projects that you've got the well you've got reserve definition, but have not yet sort of moved into the pre feasibility stage. So it sort of goes from 12.
<unk> turn to three and I was just wondering sort of what is it that sort of defines not quite sharp sort of step.
And the number of opportunities there and what the potential could be just sort of got so it sort of about 12 number sort of more just to see more of a thought.
Those in that next category beyond. Thank you. Thank you very much yeah. That's a very insightful question and again, a large part of that has to do with Nevada, and this strange relationship between Barrick and newmont.
And I'm, saying this as a complete outsider I'm not taking sides yeah, but.
You know the boundaries.
First of all the fences don't cut off all bodies, and and you had a situation where newmont had the sort of infrastructure and development and a rapidly declining resource and Ed and not a focus at the future and Barrick had high quality.
Deposits very high grade.
Infrastructure that was in the wrong place to a degree.
And and focused on paying down debt.
It was high grading its assay.
And so when we got there there was very little information base to work on so the first thing we had to do was first.
Some geology.
Secondly, divide them and the skills to focus on the actual operation in the form of mineral resource management to support the planning the G O attack.
The Geo hydrology and extend the the the the the.
The extensions of the ore bodies, because there was short and that's will remember we focused on the 10 year plan. We've done that now we know looking at 15 years.
And and once we started putting that together we found a lot of opportunities this level opportunity both legal north end level. The greater level area was that an extension of part of the call and operations the newmont call at all.
Carl and operations, where they had been a very wide spaced drilling program, but not a lot of focus in two model at the geology and that's what we are showing you now.
Four of five to 10 million ounce target.
In that area and that's taken us some time to drill because these are deep holes they have to be well thought through you and the one thing about call in deposits.
Is it's very easy to Victor and on them. It's that wants to find them is the tough, but so you get there and they're about.
But when you do this cover them they small, but hog Super high grade. So the answer is just ballooned and that's what you're seeing in that one so and the same with red It was right in the middle and we got two out of those Rita K upper and lower <unk>.
So defined geological models, but no.
Drill holes in them or very little and also Simon had no Hydra Geo hydrology. So just to give you an idea that has a significant reserve potential we're not talking about even resources.
But to get there.
Have to drill them out.
It's taken us two and a half years well, it's actually only two years in Nevada, and <unk> and we're not at the stage, where we've got maiden resource declarations.
I'm the same no turquoise ridge, which was owned by Barrick are 25% ownership of Newmont and it was using the twin creeks processing facilities.
<unk> Creek preferred they all came from open pit it was complex and it was low grade.
Barrick had oldest a high grade ore, but it was constrained by what newmont.
Allowed us to use and that's kept back. So there was never every any tension in the mine. We came along and took the fence, Hawaii and suddenly it was drinking out of a fire hose and we didn't have the geology right. We didn't have the.
Right, we just.
Hugh Hugh Hugh when you have a mine like that.
And you have super high grades people migrate to the high grades, but you get there and you've got the Geo Tech wrong. So we've only just got to that stage in turquoise Ridge, where we've got complete models now and where we can plan with concept and not to be able to do that as well remember both.
Knees were centrally controlled.
A lot of the planning was done on the demand from the sea are rather than the quality and capability of the ore body and we've moved that ownership back to the bonds and so now we have a lot more control a.
Through the month of it.
Exploitation of its own business plan and then.
Definitely no greenfields exploration and the one thing I can assure you that Colin has still got you know I I am I. My first 10 years as a geologist I never saw a gold grade above like one and a half grabs and this is in the vet waterfront and that was about 5000 meters below surface. So.
Yeah. The the the quality of geology is exceptional and and I've just touched on two key greenfield targets that we've got in but again, that's going to take at least two seasons for us to create.
This last year just to give you some idea.
The the hydrothermal.
Geochemical footprints of call and deposits are significant so you can poke a hole above the ore body and youll see it.
But then to vector into the actual ore body is quite difficult.
And and this turquoise ridge twin creeks section.
We think because really got something because we've already done a pattern of short hauls just to test and plot out the geochemical haler and now he's starting to Victor it into the top of it. So it's genuine scientifically led exploration.
It is something that hasn't been done for a very long time and North America January.
So that's where we are in and again.
We know the portfolio of Cabot in Canada was.
M T.
And so we've had to generate our own portfolio, there and that's why north.
North America is so short of advanced targets lots of potential resources, we've got to get them through that final filter, but they all have real potential to pass our investment filters, whereas in and Ami and in Africa Middle East and then the Randgold had that we had weak.
<unk> tell you three years ahead our conversion.
Because it's it's it's part of our integrated plan.
Latin America.
It was in the same but you know it was being sold off effectively because people had lost confidence in that arena and also relative to the stress on the balance sheet. It was better and makes sense of course, it made sense to stay with the North American, Nevada, and assets and look to sell off the and we've walked at all.
Back and they and the other exciting thing is when you look at the global map apart from the Russian and Chinese.
Gold belt, where we have well covered we can go we have geologists and mining engineers and lawyers and that an average gold province in the world and that's what we're busy exploiting that and I hope that answers your question and.
We also by the way I didn't tell you we've started now rebuilding our Asia Pacific team.
Geologist mining engineers.
The legal people because that's our next big growth mode. Ah is around that area, both the Asian part and Asia.
Asia and the Pacific rim.
Mhm.
Okay.
Hi, Mark it's Mike Bedford from Woodhill, Mark at a company level your unit cost increases seem to have been remarkably well maintained at a at a good level given all the inflationary pressures. We're seeing can you perhaps shed some light in terms of how you've done that and how you see inflationary pressures in the short term.
And some of the sticky once for the longer term.
Yeah. So I always I mean, I've said this many times when you act like an owner there are a lot more obsessed about the costs.
And as you know a barrick is by far a leader in how we as we did in Randgold are incentivized, our executive and blood down leadership with our equity participation. So we have a significant component of that and we teach people.
Two o'clock on this.
Well, we demand that they do.
And so with that if you look at we've also still taking out.
The synergies benefits from the merger and our discipline, we've taken out about $200 million.
Of of direct savings out of the supply chain.
Since we have joined forces.
And we've got about 100 million to go in the next by end of next year I grab.
So we still have that benefit in and to just give you an idea. We've just and we've really we are always focused on long term contracts with dampened our ability for people to change the cost.
Our whole process, where we have multiple suppliers. We've just taken a we've just reached agreement with some of our key suppliers, which have resulted in 20% reduction in costs.
We have a long term standing partnership with all of them.
Principal equipment suppliers.
And again that goes down to the the maintenance.
A lot of things and and then.
And we also have a real commitment to change the.
Age profile of our business are in Nevada for instance changed a lot and.
Older people with respect Mark are not as efficient as.
As younger people and and they don't come in as the expensive. So you get more effective more efficient more modern thinking a better appropriate engineering skills et cetera, and we've seen a lot of that and you're going to see more of that also we've moved away from expatriate towards national St.
<unk> management.
And then, particularly in and Latam America, you'll see a big difference and also in <unk> and <unk> and Paul rollout of that's not coming through yet if you look at we've moved the program was.
Essentially a province of Australia.
And everyone worked in program out of Australia, we've changed that even the store men and the storehouse was in cans.
Rather than in Port Moresby.
You know we've changed all that and that's a that's a common thread throughout Lamont, we've when we've just about half the mining costs and the Montana.
Just because of the focus on efficiency.
Our run times cycle times obsessed with it with the transport and we've got as I touched on in my presentation, a few more bottlenecks to come through so commercially.
We still have some opportunities on the logistics side again, we're just so much better than most miners are not good logistics people, but in a growing up in Africa. We learned very quickly if you cant get the logistics right you're done.
And and so.
You know things like consolidating freight has been a big boon for us through Covid and also the ability a relationship that we brought to the partnership is a we have we can do multiple lines no we didn't.
When we got to Nevada, the principal logistics company.
It was D H L.
And so it's very hard to move the peace DS 8000, shovel with DHL go to have one of those very big colorful boxes yet no.
So and we've really gone local and again a big success.
So you know I know, but.
But there is a pressure on it I would just my cynical point of view as we know in mining a lot of price pressure comes from quality of ore body.
And you've heard me say on many occasions.
What are the things that this industry and I would point specifically to investors is doing a disservice is sucking up all the free cash and dividends and not encouraging reinvestment and so you've got a higher gold price.
People are exploiting that to everyone's focused on no cash margins and no one's focusing as you saw us talk about it today the replacement of the answers you mine with the same quality of ounces.
And so yeah those are all drivers of of inflation.
We we would.
If you if Graham will tell you that inflation pressure outside the energy sector.
Is 2% to 3%.
So there is at the same time, we are obsessed about mitigating that on every day.
On the power side is.
More you know we have you know this power market, whether it's gas or diesel or heavy fuel.
Or even just you know we are generating power for our host countries at the moment because no one had anticipated the situation that we're currently experiencing so that's a bit more dynamic but again, we've got we are obsessed about long term contracts. So we have those that support us and Africa, where we are.
If we use more diesel for instance.
Again, those countries damp and.
Park are the diesel costs for instance, when it goes down you don't get the full benefit when it goes up its push into but.
Again, those are helpful and we've done a lot as you saw on just changing at all.
<unk> generation towards renewable energy and I've been a commercially beneficial way.
Do you want to add anything.
Switching.
So I'm.
I'm worried about.
The only other point I would make is just the impact on royalties from royalties on our costs, obviously, both in nickel and copper space.
We have seen an impact on our costs from a slightly higher gold price in 'twenty 'twenty. One we're using a 1700 donlin gold price and obviously, we've had prices closer to 1800, but particularly on the copper side, where we were using a 275 copper prices and copper prices have averaged about $4. So that's another impact which.
Each one has to take into account just wants its a high class problem.
That's I mean that so it just underscores the even better performance on an operational phase.
Anyone else.
Can we migrate them to.
Two global questions on the chorus call.
Yes for sure. Our first question from the phone is from Danielle <unk> with Bernstein. Please go ahead.
Great. Thank you so with the final tranche of the return of capital the sad when if at all would you give the market some guidance on the additional dividends that you could expect.
Of the nine cents a share isn't there a balance to be struck between returns any reinvestment and do you think you're at that right balance at nine cents a share.
So Danielle we promised the market as you know we're at the start of this year. We were unsure about you know we had a big task ahead of US we had taken on this massive a combination of three different entities significant entities and we we add.
And I've always been a great believer that dividends are driven by.
Performance.
What we found ourselves in in the beginning of the AR was a windfall.
Cash balance.
Because of our.
Disposal of noncore assets the title of 1.7, a $1.4 billion $1 $5 billion and we felt that again I've always said.
Because I'm a key shareholder is when you make more than you plan to make you should give some of it back to shareholders and so we felt that it was a good idea to.
Split that and give a 750.
Dollars back to shareholders and it was on that basis, we explained to the market and we kept a core dividend of nonsense, which we had increased three fold from the time, we did the deal.
No.
And we've always promised the market we had come in with a more defined definitive a dividend policy.
When we spoke to you without a 2021 results and we plan to do that.
Great. Thank you that's very useful if I can squeeze in one more and on the greenhouse gas emissions. How actively are you considering the use of offsets that's why I mentioned on the slide and could you also give us a timeline when do you have more visibility on the decarbonising pathway for mining equipment.
Yeah.
Yeah. So.
As a.
No I think first of all I'll just wait for you to give me a little bit of credit on a shy a roadmap to get trained.
<unk> 25 per cent tect off without.
Drawing on any form of religion.
And and and the 5% I'm, absolutely confident that will add to that taking us to.
30% <unk> 2030 that having said that we're not as we pointed out with a b vs on underground equipment and we've got many other initiatives. So we got a big initiative with a major supplier of.
Utility vehicles.
And there's a there's a there's a.
Swaps are more but I mean, just the experience with the the Sandvik project.
There's no technology yet.
That actually allows you to plan and confidence so we're investing in that technology, whether it's drilling technology and again, we think that's quite an important component whether it's are we looking at a whole transport technology and you know every.
Newspapers are opened up it's got a hydrogen in it but not too many hydrogen cars driving around and again, we've got a gap to go through and we're invested in that.
I thought process, we're invested in carbon sinks, we're invested also in or investing in.
Just the reduction of emissions to pad efficient a.
Additional engines and energy generation and there's an enormous amount to be had with that a big migration to natural gas, which again is a you know a significant reduction in <unk> and <unk>.
Greenhouse gas emissions so it.
Definitely you're right about.
Ah Ah efficiencies.
That's the way that technology needs to really land and just you know just to reinforce battery technology everyone's got a battery there are so many battery factories, but batteries are the.
The big batteries available today some of the technology is showing improvement, but basically it's just a pack of smaller battery.
And so you know there's still a lot of work to to go into batteries and and I must say our partnership with sandvik that I've been putting a lot of thought and our engineering and research into batteries and again batteries in a Tesla car and <unk>.
<unk> and a 50 ton truck underground different environment. So we've got some way to go but to give you a confidence we're fully invested in that and the vehicle.
Investment to us that's absolutely critical in a scope three.
Emissions, because it's all about transport and can we do it better and again on our lives. We've got some really exciting projects to take.
Hydrocarbon.
Transport out of the loop or reduce it materially and you know that's a big focus for us as well and what that does is again somebody asked me today, how much does this cost.
Stuff that I showed you just now that's all it improves the bottom lot. It doesn't it doesn't increase the bottom line. So very now we have an obsession about making sure. We use this in a property sustainable way.
Great. Thank you.
Hmm.
Our next question from the conference call comes from the line of Tanya Jaquith connect with Scotiabank. Please go ahead.
Good afternoon, everyone. Thank you very much for taking my questions I have three.
Maybe if I could start just with Graham.
Graham just when you were talking about the inflationary pressures and you did mentioned the higher gold price impact on costs and obviously the Nevada.
Tax that Tom you mentioned also in the press release should I be thinking inflationary pressures of about 2% to 3% should I be thinking as we go into 2022 that the upper end of your cost guidance range would be an appropriate level to be at or should I be thinking about putting in.
Inflation on top of that.
China High.
The.
Thank you need to obviously.
Look at that guidance and add that inflation to it.
Also need to adjust for those those different a royalty environments.
And you need to adjust for the different power environments. So those are the those.
As already to the three components that are going to drive that and then as you say the specific point that we've called out is the impact of the new Nevada, and education tax, which albeit is a tax that comes through as a cost.
And so that has an impact on those things. So those are really the four things. So you know when you look at.
The the current numbers if you go to effectively add those to it.
Having said that obviously as we look towards next year and we look towards our plans Oh, you know we've talked about some of the challenges that we're dealing with in our business you know Mark mentioned the slower ramp up at hemlo.
And some of the other areas. So that those things will also have an impact on our costs and all in all our planning. So you know it's it's a it's a combination of all of that.
So if I look at.
I'd add to that too and that is if you take him out of our numbers and you except they are the impacts already embedded in our numbers our numbers are below a thousand all.
All in sustaining costs. So again, when you're looking at the range Hemlo is a slightly different animal again, we'll bring those costs down.
From where they are today, but.
You know that if you look at the run rate of our al assets and then you've also got a.
Consider the grades in the ore bodies that are gonna be mined because we remember we focus on dollar per ton.
And end of and the discipline on the ore body side.
Without 1200 dollar gold price reserves a limit. So you know it's a complicated question to answer them.
And and and the best thing if you want some advice. The best thing is wait till February and we'll tell you.
[laughter] Oh well.
I'm not that patient on my side.
And what do you think might be you might be wrong [laughter] yeah.
I guess, what I'm getting from you and that sort of that 3% to 5% inflationary environment.
Inventories that you have et cetera sort of reasonable.
And where I said, you know as Graham says take the range and Jack It up so it's still a range. It's not just taking the top end, yes, no I understand.
And maybe Mark if I have you I would just like to two other questions for you.
One I wanted to talk about just Nevada Gold mines, you mentioned that the vaccination rate of 32% I think in the U S.
And I mean, you know I, just kind of think of that number and and I think that the productivity absenteeism went that number what sort of impacts that you're seeing on absenteeism in connectivity and Nevada gold mines.
And yes, maybe start with that and how do we get you know how do we get to an in person fascination right.
Yeah. So.
Again, a very pointed question and well posed.
The the.
So Nevada gold mines led the fight against them.
Covid and in that first rail.
I sort of infection right around the world and we know we didn't Miss a beat we had.
As the infection came we were already a big.
Warning the governor of Nevada, he better pay attention.
Weird and instituted protocols when when a vegas came to a grinding halt.
So the protocol process worked really well for us and and again when the first round of vaccines. The first uptake was pretty good but very quickly the southern part of Nevada that took us and there's you know there's a there's a big political and social issue.
Relating to the.
The the vaccine what we what we have done is.
We've got various incentives in place we have very strict protocols are in Nevada. So that deal as you know until we get a herd immunity.
We are not prepared to put our workforce at at risk. So you wear the mosques you'd do you you do your hand cleaning you keep your distance.
Everyone. So even the ones that our vaccine.
And and and we did the same tania and in Canada, because again, there was a big anti vaccine movement in Canada for a while but the government. They helped us because it made it so difficult for you to even have a meal go anyway watch a football game.
Or ice hockey Guy and <unk> and so the population very quickly moved to embrace vaccination and then we mandated it.
And we didn't do we didn't lead the mandate.
And and we are completely aligned with society and managing Covid to same in Dominican Republic, where 97% vaccinated.
Again that you know that was the appraiser then to lead the way you. It's a it's a tourist destination and he just he was way ahead of the rest of the World. Argentina has started very very hesitantly, but it's also a operation we haven't had a positive case up and.
Valley Dara for like four weeks now.
And so the challenge is and then we've just surveyed our workforce in Nevada, and one of the clear message is as people don't want to be treated like children.
And the whole American approach to this is is like no one really cares about the individual you know if it's if it's not coming out of CNN or Fox news or the whitehouse and it must be wrong.
And people take offense to that so you know, we've really engaged with our workforce we've changed our approach to to treat them like adults, which they are with respect that are first of all you know we want we wanted people to to ensure that they care about their fellow beings that I don't think we see.
Much you know.
Disparity activity when it comes to that that's not the intention.
But and so we have had a recent.
To get to the 32% are.
Quite a significant I think it's about a 6% improvement and we've really changed our approach we have mobile vaccine clinics.
We are doing it along with the normal seasonal flu vaccines and we've got a very big education program and we'll just keep banging away at it.
At this stage, we had another spike in in line with everyone's.
Our fourth wave Spock, but it's back down under control as we've really pushed the protocols and and I've got every confidence that we'll get there and and again we are.
Are we talking about you know a freedom of choice that we respect at the same time, then you need to be able to not let your fellow workers pay for your medical insurance.
Because you've decided to take on that risk yourself. So yeah. Those are the conversations we are having in an adult forum.
And we certainly are seeing a difference we have had a high degree of.
Covid cases without any symptoms and so.
We are building that immunity anyway in the community.
The problem in in northern Nevada to there are a lot of people with Morbidities and so this virus. That's the real you know it it it's a kilo in it when you get a pick this virus up and you've got any sort of.
Untreated morbidities.
I think it's a very challenging social.
Our task that where we have to do them we've done it around the world.
And and you know, we've kept Africa safe and operating.
Because at the rest of the world neglected or denied Africa access to vaccines for a long time and now we're getting them in and every time, we get a batch and we distribute them immediately so yeah. It's a it's a challenge and the mining industry is grappling more than anyone because we need people.
Those who go to work and I would suggest that you know of barrick's approach to this has so far been the appropriate sort of measure to deal with it.
And have you seen that kind of am I.
Productivity impacts from this in Nevada.
Okay. That's great on the line he's the expert Tim go ahead.
I was going to say I cannot she'd been on it. Thanks, Dan you just the numbers Boy am I just last week, we had 20 positive types as we had.
I grabbed 7000 employees. We had 60 people are off work. So you talked about the absenteeism.
Absolutely Ism right that's about what we're looking at so well less than 1%. It does impact production that you get a a cluster of people in a particular area. So you have to do crew and the whole crew goes down, but it'll be a short term impact for AG.
Up to 10 days or putting bodies more likely I can come back to work.
So the impact was really there has been an impact, but it's very minimal from the production perspective.
So they're the sort of numbers, we're looking at as Mark said, we teach them about four or five weeks ago.
<unk> started to come down dramatically and it's not impacting our production.
No.
That's good to hear.
Just one last final question if I can for.
Mark you know I'm I'm, just intrigued about Tom you mentioned Youre looking at your dividend policy or you know when you report your financials.
Q1 of next year I'm, just trying to think about your stock is very cheap and I'm trying to understand how you balance and would you look at share buyback.
Is that dividends are a combination of thought thank you.
No I told you we would look at anything we as you know.
We look at those as a holistic measure them. The most important job that we have is to ensure that we invest in our future.
We have always Graham and I are hold Korea have have bolt our dividend policies or returned to shareholders on.
On.
The company delivered as far as a P&L goes so you need to afford your debit and particularly in the.
Gold mining industry.
And buybacks have a role we did the first compulsory buyback in randgold.
In London are ever.
And there's ways to do that.
And at the same time, you know there's a you know.
The market and and Atlanta have a say in the valuation and and again, we see the value is sitting in and Barrick is a very attractive investment opportunity and and we've got no doubt that there are many people that ever.
Already started taking on that Ah yeah, theyre, taking that opportunity. So you know, we never say never theres definitely opportunities on share buybacks, but the one thing that we are we have absolute agreement an end and I'll do the same with my board is.
We do not try and manipulate we don't believe that buying shares though.
Or dividends or anything is is if you wanted to do it to manipulate your share part process. It's we're not task to do that we are definitely hard to take opportunities when we see that our share prices.
Significantly undervalued.
At the same time, we are mindful that there are lots of owners that can do with.
A reliable dividend going forward.
And to do either of those you still got to deliver a highly profitable business and we've only been at this two and a half years.
Yeah, we are competing with companies that have been around for a lot longer. So we're working on it.
I appreciate it.
Trade Boolean value share shaky person.
Thanks, a lot I haven't seen too many analysts, giving us sort of significant values that would suggest that we should be doing that so.
Thank you.
Yep.
Our next question from the conference call is from Jackie pretty be Laski with BMO capital markets. Please go ahead.
Okay. Thanks, very much I think I just wanted to follow up on a comment that you made earlier mark.
Investing in Canada, and you and you mentioned.
Yeah perspective trends in Canada.
Just to me that your your thinking today is more more on the Greenfield side.
Can you maybe talk about how you're seeing that growth opportunities maybe in Canada contrasted with the rest of the world I know when I saw you in Denver, you you'd mentioned, Pakistan as well as being potentially interesting in and I know you've got a lot of other exploration initiatives.
Initiatives on the go like how how would Canada sit in on that pecking order.
So I think Canada is right up there with the most perspective as I've learnt about Canada, one of the things that.
I think that you know I see us.
It's sort of the the the mineral industry oil and I would hate I wouldn't call it exploration, but the mineral.
Opportunity industry.
So one bull market to the next.
And and most of it is.
Is managing a portfolio that sits on the shelf during their trough.
Sure in the trough there is a little bit of additional addition to the inventory.
But.
There's that it lacks real exploration and it has done for a while and so it as you will recall Jackie early.
Got it.
Before carve outs or light twin 2019.
I was talking about exactly that and that we made a decision to go out and bold.
I will class exploration team in Canada and.
And we had enough legacy projects within Barrick to be able to have a appreciation of what the is there.
We've done that and at the same time. We've also participated in every single vending exercise.
In Canada. So that's taught us a lot as well and and you know where I dismiss opportunities to acquire things.
Long as we can deliver as we've always demonstrated value.
At the same time, we see a lot of value and.
In Canada, we have the absolute capability of one recognizing it and two evaluating or or chasing it up the value curve. So that's you know it doesn't mean to say that we want.
Snatch an opportunity that arises.
But you know if you look at my history.
It's always been a grounded in organic growth and.
And I think you know at the same time, we we're not scared of.
Tapping into a ring when there's a quality fries.
Up for grabs so.
And I don't think we'll change that strategy.
I understood.
I just I mean, I was hoping to get a comment from you to on on record yet I know in September you talked about that as being something that you guys were essentially looking to get back into is that still the case or is that something that maybe we should think about it there isn't much longer dated opportunity.
That's a very real opportunity, we worked very hard at securing.
Securing a.
Award and as you know when I stepped into Barrick there were a lot of conflicts with how its host countries and we've slowly tick them, all off and thought and converted them into a win win situation genuinely not sort of.
They are sort of some sort of abstract win win.
And and Richard that cause a world class asset at our Israeli there because of the investments that.
That barrick in Antofagasta made in the joint venture and.
It sits in the upper echelon of quality assets, we have an opportunity to to develop it without having to pay for it because we've already got the award because we already did the initial work and and at the same time, we are in a N.
Award back and the the the host country gets the benefit alongside us and everyone wins and in this modern World. You know what do you think you can go and and and extort a whole pile of cash.
Cash from emerging markets, but it's not going to happen so and.
And we don't have the risk of any upfront front.
The investments are that that as it makes sense for us to to look at and we will we are looking at it we will continue to engage with the host country government and other stakeholders to see if we can deliver it in a way where we were.
We manage the liabilities at Barrick.
Risk investment risk and and at the same time deliver real value for all stakeholders as we do in all the countries who are working so that's that's the way we look at it.
I appreciate that thank you very much.
That's all my questions. Thanks, Mark Thank you Jay.
There are no further questions registered in the conference call Sir.
Alright, well. Thank you everyone I appreciate your time and I look for it and again you know we're all available to take questions. If you want to if.
If you haven't thought of on yet and you do please reach out to myself or the rest of the team or or just get all of our loved so Kathy in and pay US a question, we'll be back with an answer. Thank you very much again for those who made the effort to come in today I appreciate it. Thank you.
Yeah.
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. Thank you for participating and have a pleasant day.
Yeah.
Okay.
Uh huh.
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