Q4 2021 Barrick Gold Corp Earnings Call

Right.

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Couple of more minutes.

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All of these clients into today's call and it will be a moment of music as usual and then we'll begin thank you.

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Ladies and gentlemen, thank you for standing by this is the conference operator.

Welcome to the Barrick 2021 fourth quarter and year end results conference call.

During the presentation all participants are in the listen only mode.

Following the presentation, we will conduct a question and answer session.

At that time, if you have a question. Please press star followed by one on your telephone keypad.

At any time during the conference she didn't need assistance from the operator. Please press Star then zero.

As a reminder, this conference call is being recorded and a replay will be available on barrick's website. Later today February 16th 2022.

I would now like to turn the conference over to Mark Bristow Chief Executive Officer. Please go ahead, Sir Thank you very much and.

Very good morning to everyone and good afternoon.

To those on the other side.

And again welcome to Barrick's quota for in your end results presentation.

It's been three years now since we started on this journey.

And Barrick, because clearly achieving its goal of industry, leading value creation and sustainable profitability.

As I'm sure you will agree with me when you.

Review our results for 2021 .

By any measure you apply returns to shareholders.

Strength of balance sheet.

P Atlas assets.

Prospect pipeline.

Our long record of exploration success.

And delivery on our commitments.

Barrick, because they're a leader in the sector.

And the fact that our share price.

It does not reflect this makes barrick's case for investment.

Even more compelling.

Please take note of this cautionary statement.

Which is also available on the Barrick website.

So let's start.

By looking at last year's highlights.

And you couldn't possibly get a better set of Kpis.

We delivered on our production guidance for the third year in a row.

Nevada Gold mines confirmed that it is indisputably the world's number one gold complex and achieved a quarterly production record for quarter four.

Copper is contribution to the bottom line is increasing.

All operational sites maintained.

Or achieve the ASO health and safety and environmental accreditations.

We more than replaced our reserves net of depletion.

It's a better grade.

Our wealth of advanced exploration targets, we will support this replenishment and consequently, our business plans well into the future.

And finally, we generated significant cash flow and materially increased returns to shareholders.

Yeah.

The operating results reflect a good all round performance, including meeting production guidance for the third year in a row notwithstanding some considerable headwinds during the year.

Okay.

And the financial results.

Also show, we did well against the leading and lagging indicators.

Free cash flow for the quarter grew again.

And despite cash returns of one $4 billion to shareholders.

We were net cash positive for the second year in a row.

At the same time, we delivered strong per share growth with adjusted earnings for the quarter, increasing by 46% versus quarter three.

Yeah.

This is a health and safety report, which tracks our journey to zero harm.

We are particularly proud of our continued campaign against Covid.

Almost 60% of our employees are now fully vaccinated.

Well above the average.

The general populations and Yahoo, as states and countries.

We've also seen a meaningful decrease in our total recordable injury frequency rate year on year, which is pleasing.

Sadly however.

A tragic fatality in January has set us back and we are re engaging with all of our workforce.

To realize our goals in this regard and to reinforce the importance of that journey to zero harm.

We will start as normal the operational overview.

North America, where in Nevada Gold mines is barrick's rail failure Foundation.

We're building a presence there from this strong base and we are looking at green and brownfields opportunities across the United States, where donlin is a particularly interesting prospect.

As well of course.

As in all home country, Canada.

Nevada Gold mines.

Live at a stellar performance crowd by a production record in quarter four.

As well as our strong free cash flow of more than $2 $3 billion for the year.

This was driven by the three tier one mines collyn.

Cortes.

And turquoise ridge and in the face of some operational challenges.

Proving again that assets of this size and quality can handle what ever you throw at them.

Yeah.

The exploration team delay.

<unk> delivered real value for Nevada gold mines.

<unk> increased reserves by $9 4 million ounces may.

Measured and indicated resources were increased by seven 4 million ounces and inferred resources by $5 3 million ounces and this is after disposals and acquisitions and before depletion.

The additional reserves came from gold rush turquoise ridge and level and importantly, the resource growth came from Collyn and turquoise ridge and so as we build this per our geology and mineral resource management, we man.

Jim the replacement of our of the goal that we mine an important component.

In a long term sustainable mining business.

Theres still more to come from gold rush in the short term and longer term prospects for the continued expansion of the complex asset base.

Very good.

As we all know the environment in Latin America has become quite dynamic.

And while we still have some legacy issues there.

We are getting on the front foot in dealing with them.

We've put a lot of effort into strengthening our presence.

Completing transforming valid era and sending our exploration teams along the Andes across the full length of Argentina and Peru.

Into Guiana, and sending them to hunt for new opportunities.

Negotiations around program have progressed to the point, where we envisage restarting the mines in July .

But we have excluded production from our guidance for the time being and until we have everything agreed with the PNG government.

We've also set up a new Asia Pacific team to broaden our horizons in this enlarged region, which we see as having significant growth potential.

The tier one Pueblo Viejo mine in the Dominican Republic was one of our star performers achieving a record mill throughput for the third year in succession.

Production and costs were in line with guidance for the year.

The plant expansion.

And mine life extension project continues to make good progress.

Although as we previously flagged supply chain disruptions have delayed the timing of the project completion.

From July to the end of this year.

Consequently, we have updated our 2022 production and capital guidance to take this into account.

In conjunction with the government the selection and permitting process for the new tailing storage facility is underway.

And once completed and this is important the project will deliver as Superman capable of producing more than 800000 ounces of gold per year up and beyond up to and beyond 2040 and in fact, most of that period, it's above 900.

Answer as of year end, we have two years, where we go over a million ounces.

The transformation of Vela Dara in Argentina.

Has probably been our biggest success in the region, where we have turned it from a struggling.

Into a significant contributor with production forecast at around 460000 ounces for this year.

The phase six heap Leach facility was commissioned in 2021 and the first stage of Phase seven is scheduled for completion middle of this year.

The cross border connection to the Chilean power grid was also completed last year and it'll be switched on when we get that final permit from the Argentinian government.

This connection will not only cut fellow dara as costs, but will be another important component.

The group's clean energy drop.

Over now to Africa, and the Middle East, which for the third year in a row.

<unk> the top end of production guidance.

It also kept up its record of reserve replenishment, replacing a 165% of the ounces depleted by mining on a 100% basis.

During the year the region paid at just under $1 billion in dividends to its stakeholders.

And at Blue Lagoon, Carter and moly production costs were comfortably within the guidance ranges demonstrating the value and stability of tier one assets.

The complex continues to forecast a robust five year production plan.

And brownfields exploration across the two permits continues to show upside.

Across the border in Senegal, we've doubled our land position and continue to generate robust results from the <unk> joint venture.

Kibali also delivered a pleasing performance with all metrics within the guidance ranges and mineral reserves net of depletion increased for the third successive year at this operation as well.

The mine paid $200 million in dividends last year. This being the first step in a process of repatriating the cash to joint venture shareholders from the DRC.

Like Lulu and Lula Cotter could.

<unk> continued to find new ore bodies within the main mining area.

All accessible from the existing infrastructure with multiple opportunities identified to add reserves in the future as highlighted in this slide.

And in Tanzania. The two previously moribund mines, we took over from Acacia have been transformed beyond recognition.

Last year, producing in excess of 500000 ounces of gold together.

North Mara is on track to become a new fully integrated open pit and underground operation. This year and has the foundation for a 10 year plan with plenty of opportunities to expand our list.

The ramp up of Bouillon, who lose mining and processing operations has been completed and the mine is set to produce well in excess of 200000 ounces per annum for at least 20 more years.

Our copper operations remain a key differentiator and continued to make a real contribution to the group's bottom line.

In quarter four this business produced 126 million pounds of copper and generated an all in sustaining cost margin of around $200 million.

The mortar in Zambia is a long life mine, which will be profitable at any realistically conceivable copper price.

In Saudi Arabia, we're looking at expanding our presence along with modern joint venture partners at Jabil Sayeed.

On our own account, we're also investigating opportunities within the Nubian shield in Egypt.

And that Zelle Deval in Chile, we achieved production.

Production guidance and completed the chloride Leach project, which is scheduled for commissioning this quarter.

Each of Barrick's Global network of mines continue to invest in their social license to operate which we work hard to maintain.

Unlock wall Street.

We at Barrick didn't discover ESG, just a few years ago.

Sustainability is at the very heart of our business.

And it's not a virtue signaling exercise.

Of course.

Caring about the people and the environment impacted by our operations.

As a moral imperative.

But it also makes good commercial sense as Barrick's partnership philosophy has proved time and again.

This year will again be publishing a detailed sustainability report, which among other things objectively rates outperformance against all critical ESG metrics.

We're also remain and we also remain in the 95th percentile of the Dow Jones sustainability World Index.

And then the top 5% for environmental policy and management mineral waste management closure and social impact.

We've also improved our CDP rating from a C to a b.

And we will be one of the first in the industry to risks to start reporting on forestry.

One example of Barrick sustainability commitment in action is our mine closure policy, which is designed to leave behind healthy thriving communities, when we and mining operations.

We reclaim as we go along.

Last year, restoring more than 700 hectares to their former state.

Well planned mine closure can even be a source of economic benefit.

For example, the production of sulfide concentrate at the Golden Sunlight mine, which was closed in 2019, not only removes a potential source of environmental contamination.

But provides nevada gold mines with sulfur fuel and pays for the rehabilitation of this mine.

An important component of our sustainability strategy.

Is closer alignment with our host communities.

Notable instance of this partnership philosophy in action is how we turned the tailings mess, we inherited at North Mara into a facility that meets international standards and is acceptable to the authorities and the communities.

Surrounding day.

Sustainability.

Is all about the future.

Whether it's our ESG commitments.

Or ensuring we are sustainably profitable and invest properly in that future by consistently expanding our asset base.

We publish and we published our annual reserve and resource Declaration last week.

Attributable proven and probable gold reserves and resources both grew net of depletion.

And at higher grades and while copper showed a slight reduction.

There are many opportunities already identified to reverse this.

In both cases upgraded geological models are supporting the group's rolling 10 year business plans.

These plans are also underpinned by our strong balance sheet.

Prior to announcing the merger with Randgold in 2018, Barrick had a net debt burden greater than $4 billion.

Since then we have generated significant free cash flow and divested non core assets.

As at the end of 2021.

In addition to being in a net cash position.

We have also returned almost two and a half a billion dollars in cash to shareholders over the past three years.

We also have a strong record of growing shareholder returns over the past five years as shown in this slide.

With this quarter four dividend, we are extending this track record and increasing the base payout to 10 cents per share.

Up 11 cents from quarter three.

To enable shareholders to end tests anticipate future returns and as we promised the board has approved a performance based dividend policy.

Todd to the net cash available at the end of each quarter as shown in the table at the bottom of the slide.

And at the same time. The board has also approved a 1 billion share buyback program.

As you can see.

From this slide.

We expect our free cash flow from operating mines.

To increase over the next five years.

No matter what.

Commodity price one assumes.

It's worth noting that every for every $100 per ounce increase in the gold price there.

The attributable free cash flow generated by our gold operations increases by around $1.5 billion.

Thanks to the operating leverage provided by our six tier one assets.

Similarly for copper.

For every 50 cent per pound increase.

The attributable free cash flow increases by around $800 million.

This is a five year gold production forecast based on a gold price of $1700 per ounce and as it incorporates the cost impact of royalties at higher forecast gold.

Mrs.

Our declining capital investment and all in sustaining costs.

Should ensure our growing free cash flow at any reasonable foreseeable gold price.

The same.

It's true of copper.

Which is already contributing some 20% of our bottom line and is well set to improve on that.

In particular, our investment this year and in 2023 at Lamar honor for stripping and new mining equipment sets the stage for some significant production growth at this asset from 2024 onwards.

And this is our 10 year gold production forecast.

It is important to note there.

This is entirely based on our current operations and does not take into account the many real growth opportunities that are within our reach.

Including program.

Donlin.

Nevada, our South American and African portfolios, and the prospects consistently being uncovered by our exploration teams.

In and around our existing regions as well as our new frontiers.

And so ladies and gentlemen, getting back to our value, creating story that I started the presentation with.

I believe Barrick offers the market a uniquely attractive investment opportunity.

We have what is undoubtedly the best asset base in the business.

With six tier one mines and more waiting in the wings.

All our mines have a 10 year business plan.

That is not on wishful thinking.

But our geological understanding proper engineering and commercial reality.

We have a significant and growing copper business, which is already providing meaningful free cash flow to the group.

And in industry running out of raw material, we keep expanding our reserves.

Our strong balance sheet will fund our investment and growth projects.

We have a long record of exploration success, and our high quality target pipeline.

Sustainability as I said in the presentation has long been a strategic business priority.

And we have an industry, leading approach, which is entrenched in barrick's DNA.

Informing every decision we make.

Compliance with standards of course remains important.

However.

It is now a natural byproduct of our strategy rather than the primary output.

The team.

And finally, we have delivered on our commitment and growing shareholder returns and have now established a clear framework on how this will evolve going forward.

Again, ladies and gentlemen, thank you for your attention and before a pause.

Back to the.

Operator to take questions I would also like to take this opportunity to introduce Christine Keener, Who's our new Chief operating officer for North America as you know Catherine Raw left us at the end of last year. We are delighted to have Christine join our team she has.

Actually recently been with myself and the team at the Nevada, She's in the saddle and and and Christine. We we welcome you to the team and I'm sure. Many of you will.

In short shrift to have time to do.

Discuss matters with Christine going forward, so as that.

Thank you for your attention and and again the greater Barrick teams some of them I have with me in Toronto are online, where they where they are not in Toronto and we'll be delighted to take questions should you have any.

Thank you.

We will now begin the question and answer session.

He joined the question queue you May press.

Star then one on your telephone keypad.

Your request.

If youre using a speakerphone please pick up your handset before pressing any Keith.

To withdraw your question you May Press Star then two.

We will pause for a moment as callers join the queue.

Our first question is from Cleveland with UBS. Please go ahead.

Great. Thanks for taking my question and congratulations on finalizing the dividend policy and a good set of results.

I've got two questions.

Hey, Mark.

On the 10 year outlook.

On Slide 28, you know I appreciate you gave just a.

Synopsis of a couple of the areas that could add to that forecast.

Aside from Port or I don't know, if you could give us a little bit more color on potential growth opportunities kind of before that 2027.

Time frame is laid out there in the slide where if you have any confidence on adding to that outlook.

Operator.

Yeah. So of course in the near term, we've got some opportunity and some real opportunities and you've touched on power already.

In Nevada again, we've got some very exciting new targets both.

Adjacent to known infrastructure and projects that we have initiated like looking at the gap between them.

The increase in turquoise ridge.

And we've got some more new greenfields exploration across the Nevada complex.

We are we are looking to grow.

Our opportunities in DRC at the moment, we have got some very interesting opportunities that we're evaluating as I touched on we've got.

Some exciting exploration ground in Senegal across the river from new logo quarter, where.

We're continuing to work on the portfolio of projects that we have along the.

And in a trend.

And and again, a big focus is adding life to them.

Two.

Valid era, and valla Dara in itself as part of the Pascua Lama infrastructure and again as I've said in previous presentations, we are working really hard at it.

Trying to define the resource space, particularly in the Lama side of the Pascua Lama project, which is in the Argentinean side.

And we have a target of 2024 to two to try and get our head around the prospective 80 of those many targets that we inherited.

From the previous Barrick management, and so and then of course, there's the challenge of realizing the Arbitration award that we received in favor of the <unk> project in Pakistan and that's something that is a key component of this I mean, that's not.

Reflected on our and our share price and at the same time, we've opened up new frontiers as I touched on EG.

Egypt, we are busy working there at all we are looking at expanding our partnership with modern in Saudi Arabia. We've got geologist now working in Guyana in South America and also Ecuador. So again, we've pushed out the boat I think that's the key.

For me.

To leave with you is when you look forward.

We rarely get.

Easily up to that 4.8 million ounce, a year target and we bolted on.

Really the big tier one assets that we have and I'll give you an example.

Colin will grow well Colin is a $1 6 million ounce producer and it goes on for a long time, the key growth in and in Nevada is Cortez and on the back of the record of decision, we're expecting out of gold rush.

Cortez moves very quickly into the 900000.

<unk> per year, and then a million ounce producer.

For that long a 10 year period so.

That is a big.

Contributed to Nevada, and its contribution to our to the bottom line of Barrick and of course, Newmont as well and then turquoise Ridge has got a steady ramp up our forecast for the next five years at least and that takes it up to the sort of say.

$100696 50 to 700000 ounce.

Production profile.

We've got some exciting opportunities in it.

In Tanzania, we are very bullish about Tanzania, and the opportunities there now that we've got those two big operating platforms one is fully.

<unk> and Hulu, which still has capacity in its processing facility are you would've seen that we've announced the expansion of the Bally and Hulu footprint.

Just recently and and that the challenge in Bali is.

We need another mining front another set of faces to operate and that to do that we need to delineate and bank and other hum.

Vein system, which is the primary sort of.

The ore body that we mine.

Currently in two different ore bodies within the Boolean Hulu mining lease.

Same with North Mara we've now got North Mara properly balanced a decent 10 year plan made up of AR and integrated open pit and underground.

Mining.

Structure and you would remember.

North Mara was one of those mines that was either Roche Darko know Dana.

And what we've got now is a very consistent 300000 ounce production profile for 10 years and a lot of upside.

That is not baked into our plans yet.

And so and then.

Mark and his team.

Our.

Starting up our Asia Pacific focus and where we are excited about the opportunities to grow our footprint in that area and again South America is as you all know is challenging.

Place right now to operate but with it as as I've found in my career that always brings opportunity. So we have a great team, we are expanding and improving our exploration groups, both in South America, and and and across Africa.

And we've built a very solid exploration team in North America, that's both.

Canada and.

In the United States.

There's lots to come organically of course the U S.

As you know.

One big discovery changes everything and that's where you really create value in a mining company.

Right. Okay. Thank you very much for that color Mark appreciate it.

And.

Sort of switching gears, a little bit you know thinking more about.

More about capital allocation.

I know you'd like to talk about M&A.

So we are always assessing M&A it seems like.

Sort of the deal.

There is a competition for deals.

It's been somewhat intense over the last couple of years.

This presentation really focus a lot more on the organic.

Both opportunities and now you're sort of reinforcing the buyback and the dividend.

Is your thought process around M&A changed at all in the last couple of months or last year.

Not at all and as you know I talk a lot about M&A and have done very little.

But the M&A that we've done has been value creating.

Indisputably value, creating and I think I would point out the competition.

For for M&A at the moment as a competition to survive.

And so you get these very high priced deals and we don't do deals like that so people know that we've been around as you know you've known me for a long time and some of the audience, even even longer and so.

Yes, we look at we've got a very strict filter now and the way, we assess opportunities and and.

And you know I think.

We were going reasonably well I think ourselves without deals and and the acquisition by newmont of of Goldcorp created real value for this industry.

Yeah.

I I reflect on some of the transit recent transactions sort of brings back memories of 2012 2013 and.

We're not in that business and we don't have to do those sort of transactions. We don't have to buy things to extend their life. We've got a solid platform. The same as we had in Randgold resources and and our intention is to build on that value platform that we've created and we set out to do that.

In 2018, when we announced the merger with Randgold, we were very clear that our focus was high quality assets run by the best people focus on profitability and real sustainable returns to our shareholders and that's what we intend to continue to drive it.

Cheers. Thank you very much Mark I appreciate it.

Our next question is from Josh Wilson with RBC capital markets. Please go ahead.

Thank you very much.

So understandably strategies and philosophies change overtime and adapt to the market.

Historically for Randgold and Barrick.

Share buybacks have not been one of the primary factors for capital allocation as part of the new strategy is something which is more prominent mark could you, perhaps walk us through perhaps what's changed and why this is the right move.

So Josh.

As long as I've known you you've been trying to change my strategy.

That strategy has been pretty focused and clear and and and.

And then at the same time, we react to certain situations and one of them is that we feel that the share price is not being properly.

Valued and so it makes sense to clear the opportunity cleared with the market.

The opportunity to buy back stock in a situation like this so I don't understand how you can say that's a change in strategy I mean that makes sense.

It's a provisional approval, we can do with it we can use it for the right reasons.

And we've been very clear about that.

At the same time, we are very focused we've as I promised you.

And the rest of the crew three years ago, we have.

Delivered a revised.

Hum.

Dividend policy based on the strength of our P&L and that's always been the strategy you know I don't believe in creating dividends or borrowing to pay dividends.

We've always paid I've always paid dividends based on the strength of the P&L and and to be able to have a strong P&L you have to have quality assets and so and you need a clear up your balance sheet and your debt structure, which we've done so everything is no ticking the boxes and.

18th 2018 in September we very clearly said that is what we're gonna do take out the debt.

Clean up the balance sheet.

Focus on high quality assets and returns real value creation on a sustainable basis.

For our shareholders and other stakeholders as.

As well.

Alright, I'll do my best to try to refrain from changing the company strategy, but don't hold me to it.

On the new sort of five year outlook.

Looking at the production it looks and granted we're working with our geometry sets here it looks like a touch lighter.

Maybe 100000 ounces over the next couple of years.

Would that be attributable to that is that a function of PV or are there other factors in there. So it is.

The this year, there's just there's a change in the balance because of the expansion in Pueblo Viejo, which we've communicated some time back and that drops the production by 100000 ounces. It pulls back up immediately next year as we finish the complete.

And of the expansion.

And you know the background behind that.

The.

The the growth side, so going from four four to four point data is very clear.

There's the other change has been the.

Suspension of operations at long.

Long Canyon and again for that asset, we're reviewing whether we keep it in our portfolio not because again, we are very focused on.

The.

The quality of our assets and the longevity of the assets.

And the other one as well.

We'll be.

Hemlo, where we've reset the ramp up.

So that's the we're slow that.

<unk> profile as we wrestle with.

Getting that mine back on track and that bond went through some challenges with Covid and the we made a commitment to bring in contract miners and then COVID-19 blocked shut down the ability for the Australian.

Teams to come in to Canada, and so we are reassessing that that operation and those are the impacts on that profile, but the profile still.

I don't know what sort of accuracy, a ruler is but it takes us back up to about the 4.8 billion ounces.

And remember these are ounces and plans that we have clear, it's not they're not forecast that actually pads.

Josh.

Understood. Thank you.

Our next question is from Matthew Murphy with Barclays. Please go ahead.

Similar question on the.

Charts guidance outlook on Capex now at this time.

The way I'm looking at it it looks like Capex is up around 200 300 million Bucks a year.

Do you.

Disagree with that.

If it is up what is the.

What are some of the drivers there. So yes, just for capital one of the biggest drivers on capital is the.

<unk> decision to I mean, the whole.

Focus on Nevada, The fact that the Africa and Middle East team got their head around Lamont, who got the cost out and they have the mining cost.

There's a bigger investment on our end and investing in the equipment. We've got some additions to make to lock the crushing circuit and so on.

So that's a big change.

The capital in program and ramping up.

That's not in our forecast tegra, yet the capital for Polaris. So then it's so I'll pass it onto Grammy can finish.

The the.

Explanations.

So thanks.

Thanks, Matt.

I mean, the key drivers.

As Mark has already touched on as.

Is the some of the changes in the mine plants. We've obviously you had some carryover of capital from 2021 into 2022 and a little bit beyond.

Related to the delays in the PV expansion that was how big is this capital project.

And that's carried over a little into.

2022, because of the supply chain global supply chain constraints that we've had there.

The other area, where we are investing more is in is in the copper business and pneumonia.

Where.

Historically, that's a business that has been starved of capital and we are.

We really investing in that business, because we see a lot of growth opportunities and you can see that in the in the profile of the mall and a ramp up over the next five minutes over the next five years, where we had.

We've got new fleet and other initiatives that will increase our availabilities.

That's a big big factor coming through as well.

And Matthew the the most important thing is the.

Next year is the last big capital year, and then it starts coming down and that's the driver.

When you look at Barrick and its five year plan and all you need to do at the end of the five years is continue those.

Those graphs for the 10 year plan.

What you do see as a growth in cash flow free cash flow because of that declining all in sustaining cost and so you know whatever gold price you use.

You are running the model that you get a you get an increasing cash flow in the 10 year plan and that's a lot of people say, yes. This is a flat production profile, yes, but it's it's long and it's it's it's exploiting our capital base.

That we would have completely invested in.

By the end of next year early the following year and then you can and you get the benefits of that over a long period.

Right right.

The only other point so I was just gonna make was just in the EMEA region.

We have got a little more capital in Tanzania, which is related to the the redevelopment of those plants at Mark's already talked about so the ability for us to be able to ramp up that production. Following the completion of the feasibility study at police when is the demand redesign at North Mara where we've now got both the open pit and underground coming back into the <unk>.

So there's a little more capital Man then at Lula, where we've got the expansion to our solar plants. So that's.

Only two two hour GHT reduction plans, we were investing in solar capacity and we've got the.

Extra 200 megawatts in.

In Nevada, as well and I would just point out Matthew the.

Those.

Our program out.

Path to 30% reduction that we've detailed all those projects are delivering 15% IRR is at 1200 dollar long term gold price so they they all.

As much as a new and they're dealing with a greenhouse gas emission commitments. They do reduce the costs and deliver real returns as a business as an investment.

Hey, Mark event with a carbon price or is that just.

Business as usual doing it that's just business as usual and you know one of the things we stuck with US we didn't get caught up in this rental stuff we waited until the the solar technology end market was as such that you could own your own.

Solar cells, and and install and and derive the full benefit of solar energy and again.

Barrick with the experience we've developed in.

In Africa as well is that we've grown.

Our knowledge and understanding of.

Micro grids in power generation, and and and and that roadmap to 30% reduction is a real engineered modeled.

<unk>.

Processed.

Investment it's not.

Sure.

Ah promised without a plan it is the plan to support the promise.

That's great to see.

Pleasure.

Our next question is from getting that coil with BNP Paribas. Please go ahead.

Thanks, operator, good afternoon good morning.

Two questions one on the dividend policies to see.

Aligning it almost to <unk>.

We'll do them.

Basically you're doing net cash, but just to understand.

Is there a maximum net cash balance that you want to keep in balance sheet and pay everything.

And there.

$1.

The maximum dividend.

In any given year and maybe any excess gets funnel through buybacks, if the share price and I was there.

So.

So the concept here is that we want to grow this business, we set out when we when we did the deal with <unk>.

Randgold, we want to build a real business.

That's relevant in the public markets and so part of that is building a stronger ever stronger balance sheet at the same time, we wanted to have that commitment to them.

<unk>.

To our shareholders way you can.

Look at our plans.

And they expect in the.

And know what sort of yields youll get from the payouts are.

Right now we stop at.

It's a billion dollars.

1 billion to $1 $5 billion and that payout so that payout keeps going.

Not to say that we wouldn't revise it but that's a good start.

I think we got to get to the $1 billion.

Net cash.

I think the point is it's a it's a self correcting formula. So every quarter, we look at where the cashes in and we power it accordingly.

To the extent that.

You know, we don't pay out cash this quarter that cash is available for whom its dividend next quarter. So.

That's that's how the formula works effect of visa.

Provided we were net.

Net cash we're looking to pay a performance isn't it.

Got it.

Okay.

One on <unk>.

It looks very ripe.

An imminent restart I understand why you were excluded from the guidance, but are you able to provide any more color.

Possible timeline of restart and how long will it take to get back to full capacity.

[laughter] just let me explain to you where we are so we signed a framework agreement was bonding.

Now recently on the commencement of the program project commencement agreement PPA.

And that sets the it takes the framework agreement and enhances that agreement gives us more surety on the vestments, we gotta make.

Is it clarifies.

The the rights of the various shareholders and opens the way for the incorporation of a new program vehicle company.

Company and.

To do that of course, we need a shareholders' agreement and a constitution the company constitutional and so.

We've now settled those the terms of those agreements.

We need to get it signed and that's a step but it's a process.

Because of the fact that they are more than one stakeholder on the Papua New Guinea inside.

Once we do that we then have the ability to apply for the S. M. L. The special mining license and roll the exploration licenses and other permits from the old program into the new Cobra and that's a process in itself.

And then we are.

The negotiation of the legal process is complete on that.

Then we've got to settle the operator's agreement the framework of that is setting the framework agreement.

And and the other key process to be.

Dealt with is the development Forum, which is a provision under the <unk>.

G law, which whereby the various land owners and other interest interested groups get together and under the MRA stewardship and allocate to them amongst themselves the equity that's been.

Reserved for the landowners and once that is done.

We're ready to to.

Commenced with the.

Restart what we have done in the interim as part of care and maintenance is we've cleaned up the pit we've cleaned up the underground.

Taken all the mark out of there.

We've also reviewed and and and and done.

Some servicing on the mobile equipment. We currently now working through the processing plant just to make sure that everything is operational so we have done a little bit of operational readiness work ahead of the final Ah.

Proper restocked and and again, the restart period will be around six months, depending on exactly when we start the restart and how much interim work we had completed.

Thank you very much mark for the detailed explanation.

Thank you.

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

Hi, good morning, guys.

Most of my questions have been asked and answered, but I just wanted to get a little bit better understanding on the <unk> and where exactly you are spending.

In terms of sustaining capital and growth.

Capital breakout.

No that would be the first question.

So.

The as I said a lot.

We've got a new fleet, we bought part of it it's still coming.

We are upgrading the whole fleet the team.

We went in there we dropped the mining costs by nearly 50%.

But the fleet was an old fleet.

So that's one that that no we still got more fleet to arrive, but we've got some upgrades to the to some of the equipment that we'll keep and then also there's some work to be done on the crushing circuit.

As well so that in.

And that really takes us to the sort of.

I'm I'm wanting to say.

300 and.

So $50 million.

Pounds of copper here right.

Yes, 100%.

So that's that's the plan and then there's an additional point to some of to add not a large amount of money, but significant as some of the exploration. We're doing we've identified some new set of lots and.

Under the current mine plan 2026 ish, we've got to make a decision on a big Super pit pushback.

But some of the exploration work, we're doing is indicating that we have we could be able to define some better grades and lower strip ratios that would delay that decision.

And extend the life and the current Super pit to go for 60 years, and if we can add more.

Lower strip material into the plan, we will extend that.

That decision until later and granular look at anything or not.

The only thing I would just say is it's it's all sustaining capital it's basically plant plant upgrades.

<unk> upgrades, it's all about making sure that we can do all the tons both the.

Most of the waste tons as well as the mining and make sure that we get the availability and the throughput through the plant and that will end.

Anita.

We had one stage you were going to sell this asset we couldnt get up.

We knew the value at that time, but.

But as the team in Africa got the hit around this operation we were very comfortable that they've got that down to making money at $2 75, a pound.

So we shifted our strategy and and we're not reinvesting in this long life operation.

Thank you I was actually I was looking for granting short answer but your answer actually.

And to my next question, which was.

What investors are looking for copper exposure he talked about comprehensive strategic assets.

Previously talking about an M&A context.

Meredith I mean, I'm, just trying to get an idea what the copper.

10 year profile, what the copper production would look like.

Should we expect that to grow beyond the 500 million.

So going into the back half of the decade.

That you are making it one one right now and could potentially make anything.

I have to make a decision on that and then what was that comparable.

Ballpark.

So the shape of it as just a cost of stripping.

And again.

Yeah, exactly how we manage that strip is it does it will be premised on what.

What we do do as far as exploration and adding additional resources, we're very comfortable that we're going to add some significant resources and reserves.

Both at.

Lamar now, which is a big operation and and also had a job all side. So.

For me we.

Have every intention of growing our business.

And copper.

And gold.

And gold and then in copper.

And and and and the the the principle behind Barrick's business philosophy is high quality assets, that's our focus and so you know.

That's what we're hunting, whether it's gold or copper.

And by the way as you know.

Eric has always had a copper portion of its business unlock many of the.

The gold miners.

The point is that the copper business never made a real contribution to barrick's bottomline today. It is and it does so even at $2 75, a pound. So yeah. That's all we've done we haven't shifted anything we've just had a look at our business we looked at selling.

We couldnt get the right price.

The team felt they could do a better job than the past and they certainly have and it's not a very significant.

Assets in our portfolio.

If you want to add.

I'd just say in each if you look at the copper graph, you'll see the growth.

Over the five year period, and as Mark has alluded to when you look further out within the 10 year period, you can see newmont are getting up to 350 million pounds.

And I think Anita at this stage.

Let's get our business settled on the copper side and we've got a we've got a lot of opportunities on the gold side and and we will keep the market updated on.

New opportunities as we.

But what we have done as I said, we've opened this.

New frontier in Asia Pacific.

And we.

We now have.

Embedded copper expertise additional expertise.

And our exploration teams, both in Africa, and the Central African copper belt region and also in all.

As Latam teams, our South American and Central American teams.

Okay, and then a quick one on the record of decision you mentioned.

I hope I'm not speaking at Cortez.

Contained gold gotcha.

Pertaining to.

Cortez, one way or they can go deeper and below the water table.

The expansion is talking about and Cortez is all about gold rush at this stage, we have some very exciting exploration.

Our new <unk>, new models and Cortez underground that we're busy drilling we touch on that if you read the M DNI.

That we are covering but this is the currently it's.

It's the business plan. So it's it's what we've got in Cortez, We've got some other additional Robertson in pipeline that we're working on and and then really it's the.

It's the post record of decision gold Rush, which as you know we've signaled that it should be in place by the end of this year.

Okay. Thank you that's it for my questions. Thanks Anita.

Our next question is from JK pretty Lasky with BMO capital markets. Please go ahead.

Thank you very much.

Also most of my questions have been answered already I, just maybe wanted to follow up with one.

Andrew was asking earlier.

Just ask you a little bit more explicitly you havent buyback now or $1 billion.

I know what we've seen from other other companies not not Eric when they when they dispose of buyback, sometimes completed executed and sometimes they don't.

Can you talk a little bit about what your commitment to executing on the buyback has been fully intend to finish the $1 billion by the end of the year.

Or is it something that will be.

More discretionary.

So.

The best thing for you to do so.

Jackie has to read the MD&A, because it's very clear they and again this is about.

A view that we have about the value of our stock and and again, we might spend at all we might spend a little part of it it depends on the market and how the.

How we feel and.

About the value of our avast stock in the market against.

The other things that we can spend the money on.

And then just maybe following up on that.

Yes.

That's your priority that your preference would be to continue to grow I know you have mentioned that.

I know I know that growing the business as a priority is that.

The first priority.

And I did a buyback or special dividend, we should think would be kind of secondary to your growth opportunities.

I think the dividends and growth are not mutually excuse exclusive as I've always said you know we focus on 15% returns at.

Gold price is much lower than they are today.

At the same time and I've always believed and demonstrated if you have that sort of full Ted discipline, you should get to a point, where you can do bus invest in your future.

And continue to make returns and a classic example is last year. We returned $1 4 billion a record return of cash returned to our shareholders ever.

And at the same time, we continue to invest some significant capital. This is to really make sure that we've got a solid platform to deliver.

The 10 year and beyond plans that we have in our big operations.

Thank you very much.

Our next question is from Greg Barnes with TD Securities. Please go ahead.

Thank you Mark with a $200 million and dividends paid out in Kibali.

The second half of last year have you opened that.

Avenue to get dividends out of the country pulling out the legacy $500 million is that progress being made on that as well, yes, we have as I told you and when we when I spoke at your conference Greg.

So we're expecting another $300 million.

Imminently this month, and then that'll be followed by another $300 and and the deal that we've got is we will we will.

Pay out the money.

For specifically two to pay down the debt.

With the next billion dollars and that's where you get your 500 from because it gets divided between its just over $1 billion. After the 200 million dividend payment the dividend payment was the first step as we pointed out in the in the announcements today and then we'll pay out the $1 billion.

Just over 1 billion, everyone gets two major shareholders get.

<unk> hundred because it goes back to to play pay.

Pay the debt and then going forward, we will we will pay 50, 50, 52 dividends and 50 for the continued.

Reduction in debt and end.

It's important that.

People understand that it's this process and we've done it in Mali as well allows everyone to benefit the government gets a.

Foreign exchange fee on the on the loan repayments it gets a withholding tax payment on the dividends.

Partners, which is the state mining company get dividend benefits going forward and we don't wait for the end of the project for everyone to benefit so yeah. That's the way we've been and we've never.

The issue in the market about this money, but it's never been as you know I haven't made a big fuss about it it's never been under question. It's just when it should be paid and and so we've got to that point.

And I explained to you in the past the reasons for that.

We've we've got to that point now.

Fair enough just mark on the risk of going down the M&A question Route again, but I think everyone agrees is paying their premiums.

Yes, it makes a lot of sense and we've demonstrated that it works, but should the goalpost be a bit wider when youre looking into development project to an exploration stage project.

To bring something that looks very attractive and tearful sure.

And that's a matter of what we agree with you know two to pay.

And infinite premium on an asset that's got no.

Permits no resources nothing is not doesn't fit our criteria and you might get lucky, but I've never.

Gambled in and the way I run our business. So we.

We have a very solid technical team at the corporate level and supported by competent.

In our country.

His skills.

And in the and again, we will pay a premium on something if we can see the benefit in the geological model or something that we feel we can unlock.

We're not we're not sort of.

The blind to opportunities as we've demonstrated in the past Greg, but just we some of these assets that we're dealt last quarter they've been around a long time.

We as an industry all walked away from them at much lower gold prices.

And.

One thing for sure as you've been around us nearly as long as me.

<unk> thousand $800 gold mask a lot of.

Issues in an asset and.

And again all of these assets had too much.

Soon to be discovered opportunities baked into the value and then a premium on top of that so.

We won't do it.

Okay fair enough. Thanks Margaret.

Our next question is from Patrick pointed out with Allianz investment management. Please go ahead.

Hi, Mark Thanks for your continued focus on sustainability topics, especially on today's call.

We believe that this requirement is.

Terry in your sector, not as a competitive advantage, but it is a competitive necessity.

We're also looking forward to your sustainability report I appreciate the work by grant Beringer there.

With this in mind on your 30% reduction for 2030, you have a roadmap laid out which is primarily solar.

Actual gas conversion.

Can you provide a little bit of color on the biggest additional projects that you have.

Destination for this target.

So we've started way back already with a big conversion of gas.

Of our heavy fuel to gas and Dr. We've built a lot of.

Additional capacity to to manage.

Macro grids in DRC, we've we've installed a big battery and the DRC, we got to put in more batteries now and really what it's designed to do is completely take out the spinning reserve the thermal spending reserve.

During the the big water periods, the Big Hot River periods.

And the way. It works is we originally tested the battery on men at managing the demand.

Of the.

The shaft the.

Hoist and it was pulling lots of power and we had to spin diesel engines to to deliver that power and that the demand was there. What we've done is put a battery of NASA, the hydro and keeps the battery.

<unk> charged in the battery can react to that demand what we're looking at now is expanding that battery.

Past city, and making the battery form the grit.

And then making sure that the hydro keeps the batteries charged and so it's a much more efficient way to manage the power and it's a significant improvement and then with that knowledge, we've transferred back to Mali, where we don't have a go.

Did it all and we don't have access to a Hydra.

We have a lot of sudden and so we trialed a 20 megawatt.

Solar has worked exceptionally well now we're going to travel that and we're going to add battery.

Basis to it and so what we do then is that we make that.

So a much more efficient and and the impact on the the.

Heavy fuel machines.

The first thing is we would want to retire the highest spending diesel machines and we've got these big heavy fuel base load machines, and again, we will be able to manage that more efficiently and then.

In Nevada as you know, we've got a higher NAV.

Natural gas power station and we've got a coal power station at <unk>.

<unk> immediately.

Two years ago was to work to replace the coal.

With natural gas and we're down way down the road on that and then without knowledge and Nevada grid is much bigger and we've got access to the United States power grid. So that makes it a lot more efficient to have a very big solar.

Power station. So we've committed 202, a 200 megawatt.

Power plant and we've got the the property right next to a power station and and.

And so that's a big step forward and then.

In Chile, and I mean in Argentina, what we've done is the old.

Or the the Pascua Lama infrastructure was designed to use to access the Chilean.

National grid, and that's probably the greenest grid in the world.

We've now got permission to do that we've connected to the grid. We've also brought the infrastructure and tie it into the Pascua Lama original infrastructure and it's not accessible by valid era, and that's a big saving.

And.

A big contribution to our emissions.

Emissions reduction.

And we've got a.

Again, we've been working in Tanzania linking the grids back because traditionally mine is both their own power stations diesel power stations now it makes sense to go back to <unk>.

To the and the grid in Tanzania is largely renewable energy and and the problem with the Tanzanian grid is its reliability. So we are currently investing in.

In grid stabilizes.

That sort of technology, so that we can access the grid, we have just joined.

North Mara underground to the Tanzania, and grid and and again, we will make it more reliable, it's a lot cheaper and it's and it's renewable and likewise with the model. We have the same opportunity because a lot of Zambian power comes from the Kariba are hydro.

And there are other opportunities as well so yeah, I think I've walked through all.

All the assays grant Beringer, you on the call if I missed anything.

Yes, that's right Mark I think the only other one was probably the PV launch kill doing a fuel switch.

From a cheap natural gas and that'll also give us your.

127000 tons.

<unk> equivalent.

On an annual basis okay.

So Patrick is that answer your question Mark I would say we're also investigating the.

Sure.

However window as well.

Andrew.

Patrick you are happy with it.

Yes, great. Thanks, guys, maybe if we shift to 2050, so thinking longer term.

What role.

Do you see from policy regulatory and value chain support to make your end ICM.

The peers that have committed to.

Net zero by 2050 become more viable or more achievable, yes, I think Patrick one of the Big dilemma is that we all have is the promise without a plan.

And so you know we've never done that.

And everything I've been involved in.

And the big challenges Evs and this expectation that they just magically we're going to deliver massive batteries that can hook up to a 300 ton truck and it's gotta be perfect.

And likewise with hydrogen.

Fuel cell technology.

Quite a long way to go still we are partnering with the major equipment suppliers.

We are investing ourself in things like <unk>.

Carbon capture.

But the next big focus for us and we already far down the road is dealing with a scope three emissions.

<unk> and his team have done a great job, reaching out in understanding that.

And we have set as a target for next year to be able to deliver a roadmap for that part.

And again, it's a it's a more challenging undertaking but we are very clear that we want to work with our service providers, particularly in country service providers and so.

And the focus has been for US is value driven focus so the big ticket items were going to address first.

At the end in the meantime, we have got people dedicated to evaluating and driving the.

The opportunity to to build out more capacity for further reduction and the one filter that we have and we've done it as I said earlier in the presentation. We've done all the whole roadmap we've shared with you.

All of those projects deliver 15 per se they meet our investment criteria as if it was another business and and we believe that that's the that's what's going to get the world to the right place because when people work out that the commercial attraction of doing this sort of work.

It delivers returns and it's not just about trying to please some demand with a promise.

Thanks, Mark and thanks, Greg.

Our next question is from Adam Josephson with Keybanc. Please go ahead.

Mark and Graham Good afternoon, Thanks, very much for taking my questions I appreciate youre doing so.

Mark can you talk about your your gold cash cost and ASIC guidance for 'twenty two.

We're expecting them to be up about 5% I know you mentioned in the.

In the MD&A that it's the full year impact of the Nevada mining tax in general cost inflation, specifically energy, but can you just talk about the buckets that are comprising that expected, 5% inflation and how much is the energy labor and materials et cetera, and then why you expect those cash costs to decline year.

Over year and 23, if I, if I read that slide correctly.

Okay, I'm gonna grams, well equipped he has done it so many times.

I just want to point out that one of the key drivers on the causes.

We've always forecast our five year plan at $200 gold.

We've changed at this year I mean, it doesn't change the production profile of the picture.

What are the changes as it adds at $24, a gram $24 to the cost.

And so when you take that and then the cost out of Nevada is about eight since $8 sorry.

And then you've got the 3% to 5% inflation. So when you back calculate everything it all stacks up and and a lot of people look at it and I Havent done the arithmetic and it works and that's why we get close to.

What we say, we got to do and what we do when we do it so.

It's a real cost thing of course, there is ways to manage it and.

And again the team we've taken $300 million out of our.

<unk> supply chain procurement business.

We've got another $50 million to $80 million targeted this year in 2022.

And again, we are that's what we do for our business is manage and mitigate costs focus on on better efficiencies.

Invest in and.

The efficiency drive and another aspect before I get Ah Ah.

Graham to touch on on the the Minutiae is we've also as you all remember rolled out a brand new data platform layer data platform that integrates all the information across the group. We've got two more months to do progress of course, because we haven't stopped.

And job I'll say age, which were busy with but all the other operations on the same platform interconnected and is fully integrated and now what we're doing is is rolling out does reporting systems and and processes, which we can use this.

Real time data to improve our business and that's definitely going to bring further efficiencies.

And I would argue that we're the only large mining company that has a brand new platform fully integrated up to speed and in the end.

<unk> modernized because it's new so with that I'll pass it to Graham and he can he can catch you the detail. Thanks Adam.

I think.

As you already touched on and Mark has touched on.

We have been guiding for about 5% inflation, which is made up of various different buckets. The biggest bucket of that really is on the energy side and obviously in.

Particularly oil.

<unk> has a big impact on our costs.

We estimate that for every $10 a barrel change change in the price of oil, it's about $6 per ounce and impact on our cash costs.

Really a natural gas has a big impact on costs.

So again about a $1 change in the gas price has about a $3 impact on our cash cost it's not as significant because.

We are biggest exposure to gas is really a nevada in PV and not reliant on other operations.

So that's the biggest factor that's probably of that five that's probably be somewhere between two and 2.5% of that of that 5%.

The rest is Israeli made up of of just cost price increases.

One of the Big factors, that's that's been impacting us lately has been freight.

So freight makes up about 5% of our landed cost. So you can see.

That it's not a massive impact but it certainly has been impacting us in the short term we believe that.

The constraints within the global supply chain will normalize within the next six to 12 months. So we think we think that's more temporary than long term.

The issue, but certainly we have seen situations, where we've seen rates tripling for example.

Against that we've been working hard to manage that.

In terms of consolidating our shipping.

Yeah.

Hearing direct chips to mitigate the cost of containers.

And and just consolidating our buying and are now shipping.

The other one that box already touched on is obviously royalties and as <unk> as he alluded to the rough impact of the change in the gold price is about $5 an ounce for every $100 change in the gold price.

And so those are really those are really the key the key buckets that I would point to mark already touched on the fact that we've taken around $300 million out of our annual supply chain spend over the last three years and in line with the targets that we set and we have another $80 million that we wanted to achieve this year.

Now that's not going to save us from.

All of the inflationary pressures that we are experiencing but and it certainly helps to mitigate some of those costs, particularly around energy materials and of course, the other one is labor.

And just touching on labor.

We are obviously exposed to the pressure that that is being experienced across the mining industry, but I would say that we probably have less exposure to that pressure just because of our strategy of employing national.

Employees in all of our operations. So we have a lower proportion of expatriate which is really where the pressure has been coming on particularly in Australia, Canada and places like that.

Our strategy of really developing all host national skills.

<unk> is paying dividends.

That probably covers it.

Thanks, and just one follow up on that so from 'twenty two 'twenty three in terms of gold cash costs, you won't have the royalty issue, presumably and then you won't have the impact of the Nevada mining tax so youre thinking that your cost savings efforts will more than offset any incremental energy labor freight <unk>.

<unk> cost inflation is that the right way to think about it yes, I think it's a combination of two things. It's it's partly to do with that those Michigan's but its also when you look at the graph.

A lot of the decline in cost is a function of increasing production. So we're effectively going from.

$4 4 million ounces to $4 8 million ounces and and so that that increase in production.

A large chunk of our costs are fixed so that's what really gives you that that reducing cost profile.

Yes, no I appreciate that Mark just one on following up on Jonathan's question from very early in the call about the.

Authorization I know you mentioned you view the shares are undervalued and I. Appreciate that you said you had similar comments on the call three months ago, you thought Barrick was a very attractive investment opportunity.

At the same time, you said look I'm not so sure we're not in the business of trying to manipulate our share price.

They are perhaps better ways to return capital to shareholders than to buy back stock.

So have you changed your tune at all from what you were thinking three months ago.

Because it seemed like you read the stock just as just as attractive then as you do now.

No. We havent the point is that we've seen a big divergent from the.

Some of that well one of our peers relative to the rest of the industry and us against our peer group <unk>.

Excluding newmont is.

In line with performance. So it is a complicated.

Challenge, but at the end of the day.

It is my responsibility to worry about the value of our stock and and.

The first point is we got to convince the.

<unk>.

Analysts that this stock is ready valuable.

We've delivered on what we said at the same time.

We want to use all the levers that we can to address that and and what we've done is made sure that we have that because you know our stock went quite far down and on a historic basis that it was relatively even though according to consensus it was undervalued. So we.

We wanted to have the all the.

The tools to deal with.

A lower stock price should should.

Prevail and should we see the opportunity to to tidy up some of the.

Sort of.

Less well held.

<unk> shares.

And Mark just on that divergence in valuations is there anything that you would attribute that to do you think it's <unk>.

Dividend policy do you think its where youre domiciled.

Els that.

Strikes you.

For me I look.

You will recall I have been through this exact same situation back in 2012 in 2013, where every time I stood up on the podium.

People are banging the table, saying you need to grow you know and everyone was promising growth and everyone was running around buying anything that they could and and and we and Randgold. If you plot the randgold share price.

I had lagged for a while until such time as you know these these big deals didn't work because the gold price softened and this way we've got two ways to deal with that inflation and the gold price cycle and it's interesting from 2013.

Randgold left the rest of the industry, because we haven't done any value destructive deal and we outperformed the industry all the way till the deal with Barrick in 2019.

And we never you never close that that margin and so that and that also lies because again.

The the level of analysis in the gold industry at these sort of gold prices is.

No.

As the gold prices always.

Proving the analysts wrong, because it's moving in different ways in and no one gets the gold price right.

And so for me there are lots of different.

Influences on gold stocks at this time of the cycle and it's worth going back in and plotting equities and in the gold price started 2005, its a very interesting graph to look at and again, we at Barrick already long term.

Our focus is long term value creation, it always has been and.

And so when we look at.

How we manage and communicate with looking at the long term.

Yeah, It's Peter it's been my whole of in my in my life has invested in bearish I'm fully committed shareholder.

And so most of mine in fact, all my colleagues and the executive team. We're all owners and in fact I don't know if you noticed but you have to have five times your salary in equity to be part of our executive team.

And so.

For me, it's a complex situation.

Our discussion without borders and and our shareholders.

Is that some view that as a that we shouldn't be sitting there watching our share price languish.

Relative to anything else and.

There are moments when it makes good sense to to initiate some buybacks and you.

Can't do that at a drop of a hat you've got to have it approved and.

And so we made sure that we address that.

That particular tool that we need in our toolbox.

Thanks, a lot Mark I appreciate it.

Our next question is from Tanya <unk> with connect with Scotia Bank. Please go ahead.

Oh, great. Thank you and good afternoon, everyone.

Congrats on that.

Anthony Yang channel there.

Okay policies.

Two questions if I could I just need cash allocation on one. So my first question is on the GIC and the repatriation of EUR 500 million I just want to confirm that you have all of the necessary signatures in place to take some money out of the EIC.

And if you do.

How we're going to take it out.

Thank you.

Okay.

We don't need any signatures, it's a standard procedure.

What as I explained to you Tony a while back there was this confusion between the 2018 code, which we're not legally.

Required to follow.

We developed and invested against the 2002 code, but at the same time as you know, we're not a company that sort of.

Sticks that post up and as the last man standing at the top of the mountain.

We the first step of the payment.

Was it at the end of the third quarter last year, we paid out a 30 million dollar dividend to just a practice the process and then another.

170 at the end of the year again as part of the process because.

There's a lot there's a lot of money there and it makes people anxious and then next one is we've agreed to pay it out originally it was 90 days to just manage the the banking system and give it.

The chance to manage that amount of money, leaving the DLC.

We've now settled out at 300, 300, and then 400.

And we will do it and.

And sort of.

123 week slots.

That's the that's the plan.

I would also point out just so everyone understands this.

Never say that we couldnt take it out.

I've always been very clear and it's never been a question with the Congolese government that it wasn't our money and that anyone who is trying to keep it there.

We've had to go through a whole lot of processes and it's only recently that we have a fully aligned cabinet that's aligned with the parliament to be able to address some of the the requirements.

We are the other one is that 40% of all our revenues.

<unk> offshore.

So when Kibali everytime it sells gold, we keep 40% offshore and that 40% goes to payback.

The loans and other corporate costs like management fees and so on.

60%.

Repatriate and we use it to payables and so on and Theres, a residual amount and as we've performed at Kibali.

The amount of that repatriated portion of the revenues has grown.

And with the Quebec government it was a complicated process.

And.

Normal approval from the central bank to really to transfer money.

Was was was never denied but it was never responded to and to move.

Is it because it's a dollar account off.

Of the.

Offshore effectively outside out of DRC, you do need a foreign exchange approval.

Forex approval, which comes with a fee.

And that's the process that we've been working through and as you know there was a recent change in the Central Bank government and and now with the new Governor it's been easier to deal with that because there's not a connection between the ministry of finance.

Ministers office and and the the governor of the Central Bank. So that's really where we are and and it's.

The money you cant transfer money just transfer it.

You've got to pay out something in there too to the three things that we can use that money for of course paying costs.

Then repaying the debt until the debt repaid and after that it's just dividends. So the important thing was to pay the first tranche of dividends why because.

The state mining company and the state court benefits in that transfer and we demonstrated that.

And then the second is to clear this billion dollars.

Out on on on debt repayments, and then move to a 50 50.

And that's ready.

The.

The rationale behind us.

And we have you know we don't we don't have to seek approval no one says.

You will do this but we went through a.

Fair F series of commissions to review the situation and the conflict in the.

And some of the legislation. We've we've also agreed with the president of the.

Parliament Ah sorry of the Senate.

To introduce some legislation to clean up the these are.

These articles that might be misconstrued.

And that will happen.

This year.

As part of the.

The Senate process or parliament process and.

And so that's the that's what it is and.

I don't think there's anything more that we need to build the trucks, where we've actually put the.

The instructions that transfer instructions into the bank or we get it I think it's probably today or it was happened yesterday, but sometime this week those transfers will go.

Okay. So when I look at your financials at the end of March.

One.

Got that.

500 million your shack, well all have been removed.

Also probably 600 of the the bed in it could be but right now.

If you look at every two weeks.

The there's a charged it might be just at the beginning of the last tranche at because originally it was 90 days.

But certainly the next.

This quarter, we should have the first two tranches of 300 600, many of them that 300 is us.

But I think there's a real motivation.

For the for the government to get this thing settled because.

Tanya.

That all the time and the money sits in a bank account in DRC it attracts an 8% interest.

So.

Theres, a big motivation to get this thing settled.

So $600 million in Q1, and the remaining $400.

Alright, Thank you, Tim and we might surprise you.

And then just maybe.

On the DRC, we did notice.

Or penalty.

Jim can you, let us know what that's about that's a normal course of business.

We have.

Yeah.

We have sometimes little over enthusiastic customers people.

And the annual.

Audits and.

In fact most of those.

<unk> supported by document to prove documented approvals and how we manage our duties against for instance, some of the explosive materials that we.

You'd be important also steel balls, just as an example, where it has been interpreted as something else and its a normal course of process we.

We will engage which we have we've got all that comfort letters and the decrease that we need to to deal with this challenge and as we've stated in the MD&A. We are we don't believe that it's a it's something that we should be.

Providing for.

Okay. Thank you and just my last question just finally.

Finally accomplished strategy just wanted to understand a little bit.

That strategy and just where we are.

Yes.

So right now.

The asset that we have is the arbitration award.

Uh huh.

Which we share with Antofagasta and.

And ourselves back.

We are working and have been in a general knowledge.

And in the spirit of Barrick's philosophy of how we can convert that into a into something that's more meaningful and that's something that doesn't end up with a with the Pakistan government, having to write a big check without any benefits and.

Rick Burdick is an opportunity that we've been working on whereby everyone will benefit.

Our shareholders of course and.

And same with the baluchi start in government in the Pakistan government, and that's really where I would want to stop it because theres still a lot of work and water to fly under the bridge, but thats the tactic and they know and as I said I think I was told Greg It is.

That is conference that.

It's it's a it's a real asset and we would like as miners to convert that into a mining asset. It's one of the better ones around Ah.

Otherwise, we end up in the conflict and that's not a good thing to do with your host country or potential host country.

Okay. So is it fair to say that this is a ways out in terms of fitting into your 10 your pipeline.

It would be fantastic in a change of heartland.

It's a real deal.

But it's not in our opinion, not and Oh, sorry, it's not in our tenure popular right now I understand that in terms of resolving everything and that currently having it.

<unk> study.

Would you be able to even send it into your tenure shop.

Absolutely.

Okay.

Great. Thank you thanks Tonya.

Our next question is from Mike Parkin with National Bank Financial. Please go ahead.

Hey, guys congrats on a good quarter.

Just a question with respect to the.

Performance dividend does that.

Indicate kind of a comfort level with carrying debt on the balance sheet or are you.

<unk>.

Whereas the debt is.

Given the.

Performance dividend is linked to the net cash position.

So.

I think you've just answered your own question Buck.

Net cash means theres no net debt and so the way. It's designed is that if we have because what we have done initially as our debt to to pay it all up is expensive.

Hopefully it gets cheaper and cheaper with a growing interest rates.

But we've offset that we've got cash balancing the debt.

And what we've said is.

Anything above zero, so from <unk> to 500 million net cash we had pay at a five cent dividend and then 500 to a 1 billion and a bit into 51.5 hundred.

Okay, and so that's and what it does is that it.

Really as it said non negotiable process, because if we are investing heavily in a big project for example, and we drive.

We increased our net debt to fund that then we are investing our shareholders' money into that project in and given our return criteria. We think most in fact more than most of our shareholders would support that.

If we don't know.

And we and rebuild.

Cash on the balance sheet, we make sure that we don't create a lazy balance sheet and in that.

On a formulaic basis money goes back to shareholders.

Okay. Thanks, very much guys. Okay. Thanks Mark.

Our next question is from Brian Macarthur with Raymond James. Please go ahead.

Thank you for taking my questions. After all the time I just wanted to go back to the self correcting mechanism on the dividend and your service is coming from the debt side, but what about the working capital side I mean, we get variability.

If you really built up.

That working capital down you get a lot of cash pay it out in the next quarter rebalance. It does that is that what I was to take meter or is there. Some mechanism. We just kind of smooth it over time because.

A lot of investors like a more smooth evident in things jumping up and down.

I think over the year.

As Graham says it yourself balancing.

I don't.

No I think it worked really well in randgold this sort of approach it slightly more sophisticated because a much bigger company, but.

I think you'll see that it'll work out just fine.

While uncertainty over time, you'll build it up anyway, but I guess, there's less risk of that happening.

Second question, just Mark the only thing I think it's quite interesting that doesn't get talked about a lot is.

Liabilities. So just on this golden sunlight deal effectively do reclamation, which is very very good you get a source of product, which is to provide lower cost in Nevada, which is a win but theres also a reversal in the financial exactly so liberating money.

Bonds and stopped by doing all of this as well is actually a three pronged win here.

Yeah. So when we started when we started three years ago. The bond was $150 million. It's now 90.

And right and it's going down and the little eventually end up with Zara.

So that's the plan and just as a broader strategy you know we inherited we've got a number of.

Our closure sites, which actually sits at the most in North America on the Christine.

And when I sat down with the team back in 2019, what I've challenged the team to do is.

Is to engineer. These these sites were being maintained and can kicked down the road and it was costing us hundreds of millions of dollars a year just to keep them compliant.

So what we see.

Patterns the team with is lit engineer them to closure not hundreds.

100 years of water treatment closure, but full closure so get the best engineers focused on.

Rehabilitating the sites, making sure that we have we can sustainably manage.

For instance, the water balances and the team has done an excellent job already.

Already we've more than half of that debt.

That caused Patrick Malone are you on the call.

Great Rob you might want to comment so we've driven that and of course with a higher gold price.

We've disposed some of some of those sites because they have.

Resources, and then they don't meet <unk> criteria, but they certainly meet other mining minus criteria and so we've really cleaned up that.

That portfolio and continue to do so.

And then what it's done as well as it's it's growing barracks.

Skills and and technology in managing closure.

And that's a real asset to have.

In.

In this in the modern world is to deliver is to bring another skill when we go to mining and that is that we we manage and I think and gradual.

It reinforces one of the most neglected parts of ESG is not only the S part social side, but also the biodiversity and water and and it's and it's a big issue for Barrick and our closure of philosophy.

What do you want to add to that.

Yes.

I think youre right Mark in terms of the water as they set really was where we focused.

Okay. After the merger because this strategy prior to that was just to treat water in perpetuity. So the liabilities.

Massive.

In terms of just water treatment, so that really hasnt been off I guess I mean, one of the key drivers for Golden sunlight.

Was removing that TSS.

Which we needed to treat the seepage water from and that again is going to be in perpetuity. So we've completely remove that liability and.

The same for a number of the other sides that lease.

We started looking at it removes that liabilities.

And then to the biodiversity point.

Golden Sunlight is a classic example of this is we are being able to restore that land.

<unk> back to its previous condition and we've also purchased adjacent land, which we are now.

Making available to the community as a conservation area.

So really it's coming full circle in on a lot of these closures thoughts and at the same time as you mentioned, reducing those liabilities significantly.

Great. Thanks notes, an elegant solution.

Final question a quick one just as long Canyon two in your 10 year plan.

Yes, but there's a big gap and in it.

And it sort of winds down.

It's eight O the debate and the team is is it rarely at Barrick.

Evel asset.

And we are actually looking at and conversation with our partners at <unk>.

Possibly realizing that asset.

In the short term so it isn't bad as a very small contributor yeah.

For the next few years, we were obviously focused on the permitting and then it only kicks back in in 2026 in terms of fresh rock.

But as Mark says it soon.

For the June to decide whether we keep it or not.

Right It would there be capital in 'twenty four 'twenty five.

No at this stage.

Yeah.

Thank you very much I appreciate you answering all my questions pleasure.

There are no further questions registered at this time I would like to turn the conference back over to Mark Bristow for any closing remarks broadwell as has been our.

Marathon session.

And hopefully you would've recognized it wasn't my presentation. This time it was all the questions. So we're really focused on getting this message out.

Lot of detail in our MD&A, we thank you for your questions and and again if any further questions. As you know we are always available to.

To answer your questions. So again, thank you for affording US all this time and we'll see you soon probably down in.

Our Florida hopefully.

So thanks again.

Okay.

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