Q1 2022 Barrick Gold Corp Earnings Call
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Ladies and gentlemen, thank you for standing by this is the conference operator welcome to the Barrick 2022 first quarter results conference call.
During the presentation all participants are in a listen only mode.
Following the presentation, we will conduct a question and answer session.
That time, if you have questions. Please press Star then one on your telephone keypad.
At any time during the conference call should you need assistance from an 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.
Later today made of course 'twenty to 'twenty two.
I'd now like to turn the conference over to Mark Bristow Chief Executive Officer. Please go ahead Sir.
Thank you and a.
Very good morning, and good afternoon, ladies and gentlemen.
The world today is facing the greatest period of economic social and political disruption it has experienced in more than a generation.
Russia is wall on the Ukraine, and it's suspected larger ambitions.
Code redraw the map of Europe breaks.
Breaking dawn what everyone thought.
It was a permanent lease settled order.
This is already having a painful economic impact on many countries, who are dependent on Russian oil and gas, but also in industries worldwide, who are facing serious supply.
Logistics challenges.
In a rising inflation environment.
Meanwhile, over in China.
That has come back.
In a big way.
Dispelling any notion that the worst of the pandemic was behind us.
All in all.
It's a time of radical change and no one knows how it's going to turn out.
As far as Barrick is concerned however.
Scenario planning is an important part of our regular strategic reviews.
And they keep us prepared for all reasonably conceivable outcomes.
Including the worst case ones.
Our global presence means that our risks spread widely.
And the strength of our asset base our <unk>.
Balance sheet, and our management gives us confidence and confidence in our ability to navigate the turbulence.
Please take note of this cautionary statement, which is also available on the Barrick website.
These are the salient features of the past quarter.
As we messaged production was softer than the previous quarters for reasons I'll explain later.
As planned we.
We expect that the second half of the year will be stronger, which should keep us on track to meet our annual guidance.
Our best as it's generally performed well with new logo in Qatar delivering exceptionally good results.
Other highlights of the quarter include the in principle agreement with Pakistan for the restart of the Rico, <expletive> copper Gold project, which.
Which we believe will be a tier one asset.
By any measure.
Also important was the progress we made with the permitting process of Pablo.
Our warehouse, new tailing storage facility, which will try to transform.
What is already a tier one mine by adding more than 20 years to its life and as much as 9 million.
New ounces to the reserve.
As we expected.
As we expand globally, we continue to strengthen our management team through a number of senior appointments and effective succession planning has facilitated the smooth transition to new chief operating officers for our North American and African end.
Middle East regions.
E S G.
What we call sustainability remains high on management's priorities.
And last month, we published our fourth annual sustainability report.
Which highlighted the importance of our integrated approach and updated our greenhouse gas reduction roadmap for the journey.
Eight zero.
We havent seen the report if you haven't seen the report yet.
I would suggest that it's well worth the read.
So turning to the numbers.
Robust operating and free cash flows and the net cash position again strengthens our balance sheet and supported Barrick's, an all girl declaration under our new policy of a.
10 cents per share performance dividend.
Which effectively doubles, the Tencent base dividend.
It's also worth noting that Kibali has now paid out $1.2 billion on 100% basis over the last six months cleaning the black backlog of a locked up cash in that country.
The past quarters gold and copper production provided the base from which performance will improve steadily over the course of the AR.
We remain on track to deliver with it now 2022 production guidance.
Cost guidance, maybe at the higher end of the range due mainly to the increase in global energy prices as well as the inflationary pressures across the global supply chain and the effect of a higher gold price.
On royalties.
At the start of the year.
We guided costs by about 5%.
And with the recent increases in prices, we see this potentially add.
Adding around another 3% to costs.
And on the financial side.
Our improved net cash position of $743 million.
Was driven by operating cash flow of $1 billion with free cash flow of $393 million.
The distributions received from Kibali and the continuing monetization of equities positions arising from the sale of noncore assets.
Also worth noting.
Is that during the quarter.
N P upgraded our long term corporate credit rating to Triple B plus from Triple B with a stable outlook.
We also published our first Standalone tax contribution report, which highlights the significant contributions we make to the countries and a condom and economies where we operate.
Yeah.
We continue our health and safety journey to zero harm.
Otherwise credible record was sadly marred by two fatalities during the quarter.
As you would expect we take these events extremely seriously.
And among other initiatives, we have increased the unsought engagement and visibility of operational leadership to ensure that these do not happen again.
By the end of the quarter.
67% of our entire workforce had been fully vaccinated.
And there were very few active cases on sites across the group.
As recent events have shown however.
We can't afford.
To drop our guard and so we're keeping our protocols in place and updating them on a regular basis.
There were no clause wasn't environmental incidents during the quarter and we again improved our water use efficiency.
Which at 84% was ahead of the annual target of 18%.
Greenhouse gas emissions also decreased by 9% quarter on quarter.
As one of the groups many community initiatives.
Nevada Gold mines has provided a 30 million dollar alone for the provision of a broadband internet service to the surrounding towns.
And elsewhere across the group Barrick spent $4 9 million on community development projects.
The sustainability report I mentioned earlier.
Details are evolving approach to ESG management.
It recognizes that global crises, such as climate change poverty access to water and biodiversity loss are inextricably linked and should not be treated in isolation.
We believe that it's only by integrating these challenges and approaching them holistically that we'll be able to make a real difference.
2019 sustainability scorecard was a first for the industry.
And the 'twenty 'twenty. Two addition, again features a number of firsts.
Alignment with the reporting standards of the various ESG guidance frameworks.
Public disclosure disclosure of our scope three emissions.
And Ah reduction roadmap.
A report on social metrics not along $2 spent.
And our biodiversity standard and water policy.
It also updates the greenhouse gas roadmap that plots a course to net zero.
And the progress, we're making unresolved legacy issues.
This year's report again updates all sustainability scorecard.
Which rates our performance across a wide range of key metrics.
While noting many improvements we achieved our third overall b grade and honest acknowledgment that fatalities are not acceptable.
And there's still a lot of work to be done with regards to our drive to zero harm.
We started the operational report with the North American region, where in Nevada is home to three of our tier one bonds.
As well as many of our more interesting future prospects.
At the same time, we continue to progress the giant Donlin gold project in Alaska.
With an intense winter drilling phase as we search for more opportunities to grow our business in the Americas.
These are the operating results for the Nevada Gold mines as they expected production was lower following the record quarter for performance driven by the processing of higher grade stockpiled ore, while the goldstrike mill was being repaired.
Plans are in place and Kpis are being monitored closely.
To ensure that the full year guidance will be met.
In the meantime, turquoise ridge ridges third shaft is on track for completion, this year, which will continue to support us.
Operational improvements there.
Results from drilling across the Nevada projects continued to highlight the huge potential of.
These systems as new targets are developed and resources are expanded.
At Turquoise Ridge geological modeling of the BBT corridor to the south highlighted the potential for significant additional ounces, which are early draw with with early drill drill results, indicating a this opportunity.
Drilling between.
And within the legacy twin creeks and turquoise Ridge operations is transforming our understanding of this area and we continue to make changes to the models with implications for exploration.
One of the strongest untested geochemical anomalies in the district has been identified at the fence line targets on the legacy boundary between the two operations and.
And shallow drilling is in progress to define vectors for a deeper core drilling project later in the year.
North level continues to grow as we step out around the maiden resource of 700000 ounces declared at the end of last year.
Resource delineation drilling is defining additional ounces whilst further drilling is planned to test the open extensions of high grade structures around the deposit.
North level remains one of our highest potential near mindset lots in Nevada.
And Ren is another expanding opportunity.
Last year, we declared a maiden inferred resource of one 2 million ounces and recent results have not only confirmed the muddle, but have continued to expand the J B zone resource to the south.
Mineralization remains open at both J B and Corona corridor.
We have initiated various mining studies on the geotechnical ventilation and dewatering parameters to optimally design. This part of the mine.
Over now to Latin America, and Asia Pacific.
Which ended the quarter, having made significant progress with its growth projects.
In PNG, we continue to get closer to reopening the mine following the passing by Parliament of legislation necessary for our agreed physical arrangements.
We expect to complete the remaining outstanding agreements in the next quarter.
Our planned midyear restart is expected to be delayed by one more quarter.
Yeah.
Pablo via her as I indicated earlier is a solid tier one asset which delivered our plan regarding production.
Production and costs on the back of record throughput, which bodes well for the future long term performance of the operation.
The new tailing storage facility, a key part of the transformational upgrade and expansion project is continuing to advance down the development path.
With the Esher application expected to be filed in quarter three.
And that well have dara.
The mine delivered on our planned lower production for the quarter, despite being partially impacted by Covid related absenteeism in January .
And the mine remains on track to meet the 2022 guidance.
Construction of the phase seven lease fed also remains on track with the second phase.
Expected to commence in the final quarter of this year.
You will have also seen the announcement of our agreement with the government of Pakistan, and the province of Baluchistan to reconstitute and restart the rig could dip project.
Which has been waiting in the wings for more than a decade.
It's an extremely exciting project.
There with the best of the best copper deposits.
And with the added attraction of a significant golden dominant.
Since the agreement was signed there's been a change of government in Pakistan, but this is not expected to negatively impact the process in.
In fact, I'm Jude to meet the new Prime Minister later this month to review progress.
Richard <expletive> is another good example of Barrick's partnership philosophy.
We will operate it but it will be owned 50% barbaric.
<unk>, 5% by well established Pakistan state owned enterprises.
25% by the province of Baluchistan.
The various underlying agreements are currently being finalized.
And when that's done we'll start to update the existing feasibility study, which should take around 24 months.
As such Richard there could be in production in five to six years, a very short term a short timeframe for a mine of this size.
Turning now to Africa, and the Middle East. This region finished the quarter ahead of its gold production plan on the back of the usual strong performance from the flagship Blue logo in Qatar.
And Kibali operations.
At Lula Carter.
The key production driver was higher grades per ounce cost matrix were well managed despite the impact of higher energy prices and increased logistics costs from the continued sanctions and border closures imposed on Molly by Echo us.
Albeit operations at Lula Cape.
Gordon Kauto remain unaffected.
The Lula districts.
Is.
Key mineralized Colorado's.
Continue to deliver exciting results.
<unk> across the border in Senegal is one of the more prospective pieces of ground and our West African portfolio.
And the team there is prioritizing lodge controls Lockheed to host potential significant deposits.
At Lula drilling north of the previously mined P. <unk> satellite deposit has also defined mineralization over 600 meters with some high grade intercepts what was while the results have also highlighted.
The potential to extend the far about complex set of lot deposits.
As we planned.
Production in Kibali was lower than the previous quarters due to planned maintenance and waste stripping.
Production is expected to improve this quarter and the mine like the others remain on track to achieve its annual guidance.
Like Lula.
Kibali continues.
To maintain its record of replacing reserves depleted through mining.
Resource conversion drilling from underground is successfully defining the potential for sustained growth over and above depletion for both 2022 and beyond.
And in Tanzania.
North Mara.
Boolean Hulu are on track to meet the annual guidance.
The quarter, one performance largely reflects the impact of planned maintenance at North Mara and the development of new headings, plus the removal of legacy underground waste it fully on Hulu.
North Mara has ramped ramp up of its open pit operations is on schedule.
And the project is designed to further derisk the mine by providing it with another source of mill feed and improved production flexibility.
A quick look at the copper portfolio were jumbo Sayeeda zaldivar, both delivered production and costs that were in line with or better than guidance.
Zaldivar as chloride project was commissioned providing the infrastructure for enhancing future production.
And as expected waste stripping impacted on demand as production, but its performance is forecast to improve steadily throughout the year.
Exploration at La Manana continues to access multiple targets in parallel redefining the geological models for existing targets and identifying new projects.
The overall aim is the definition of alternate all source that can provide production flexibility, whilst the chimney super pit pre stripping and associated infrastructure upgrades are completed.
Early results from ongoing drilling at the lube with target of encouraging and show the potential to extend the mineralization a further one kilometer to the north.
So with gold prices remaining high.
Driven by our global geopolitical and economic fears.
It's worth noting the unparalleled low leverage our portfolio of sixth tier one gold bonds gives barrick.
For every $100 per ounce raws in the gold price.
The attributable free cash flow generation generated by our operations over a five year period increases by around $1.5 billion.
The same is true of our copper assets for.
For every 50 cents per pound increase in the copper price.
Attributable free cash flow generated.
Those minds over five years rises by about $800 million.
And strong cash flows generate peer leading returns to shareholders as shown in this slide.
The distribution policy and overrated this quarter effectively doubled the dividend by adding a 10 cent per share performance element to the 10 cents per share base dividend.
On an annualized basis this equates to a yield of approximately 3.5%.
The new Formula also has the advantage of giving the market guidance on the potential fuel future dividend streams.
And while we don't believe our current share price fairly reflects its inherent value.
It has performed respect respectively against the spot gold price and the G. D X as shown for these periods.
And this leads me to what I believe is a compelling thesis for investing in Barrick.
It includes the peerless quality of our asset base.
Our pud proven long term strategy combined with reality based implementation plans.
Our ability to more than replenish our reserves and our long constantly replenish prospect pipeline.
Our approach to sustainability.
Characterized by tangible on the ground action and measurable results.
And of course.
The strength of our balance sheet.
But perhaps the characteristic that most distinguishes barrick from its peers is a focus on tier one assets selected against a set of very clear investment criteria and supported by our ability to operate in.
In both developed and developing countries.
There's an old saying.
And if youre looking for elephants.
You have to go to elephant country.
We've searched for and found tier one assets.
In parts of the world that presented challenges that daunted other mining companies and then proceeded to successfully develop and.
And operate them.
Whilst we continue to invest in pursuing new tier one opportunities across all three regions in which we operate.
Our next stop right now looks to be Pakistan.
Where we once again.
Once again perseverance partnership.
And patients have put us on track to deliver one of the world's greatest mining opportunities to our shareholders our partners.
And all our other key stakeholders.
Ladies and gentlemen.
Thank you for your attention and the team and I are happy to take any questions.
We will now begin the question and answer session.
Joining that question queue, you May press Star then one on your telephone keypad.
You'll hear a killen acknowledging your request.
If you're using a speakerphone please pick up your handset before pressing entities.
To withdraw your question. Please press Star then two.
Our first question the interim Greg Barnes with TD Securities. Please go ahead.
Thank you Mark I, just want to understand the timing around the permitting of the new tailings facility equivalent via email.
You said, you're going to file in E. S. Sorry in Q3, so that would suggest you picked the site.
I was wondering how long it's going to take the government to prove that site.
And then just.
You've picked because they're going to be a significant delta in the capital cost for the <unk>.
Expansion, depending on which side you do pick how much will it capex potentially change up or down.
Just to take you through I think we've shared this with you before we've been through.
Lot of thoughts more than 30, but really got down and evaluated around 22 sites, we shortened that down too.
Five sites and then we passed all our assessments we used two independent.
Engineering firms to order a process and pass it back to government and as a consequence. The government then reviewed our selection criteria.
We have as as the government announced reached an agreement on the way forward for the final selection of the sites are we.
We're looking at two sites at the moment both in the same provinces, which the mine is located and were currently doing invasive evaluation for the foundations of the the walls and also making sure that you know we don't have any open aquifers that Mike.
Put the storage of the material that risk and and whether we have to lineup or not.
And and that work because we should be ready to file our ethnic makeup.
Make a final decision and of course, we'll file that application.
With the the the all the information.
With the government and on that basis, we will already have collected the the key.
Technical data.
So that we are ready to make.
It makes the application for the environmental permit and that will we're forecasting to do that early Q3.
And then it's a matter and we working alongside the government in this process and and so we don't see any reason that that process won't.
Continue as it has in the last couple of quarters and and our plan is that we should certainly be in a position to determine.
That that project is now approved it is continuing.
<unk> when we get to the final permit might be end of this year towards the end of this year or even early next year, but that doesn't that wouldn't change the process. So.
So that's the first part of your question and we are engaged now in consultation we have a we have a couple of infrastructure to finalize. The first one is are we going to be moving the material on a conveyor belt.
And so that requires consultation as far as the <unk>.
People that will might be affected by that infrastructure and then of course.
As part of our evaluation we are also consulting.
With the communities that that might be impacted on the final by the final decision.
And again as we indicated originally we also looking at a buffer zone. So there are some common areas no matter what the final decision is which will.
Also involve relocation so and we've done the first round of a consultation on that basis on.
On the cost side and the other costs. The original estimate is around one $4 billion 900 million odd dollars for the.
The expansion.
Expansion of the plant and that's associated infrastructure and then.
The rest looking to the the tailings dam I think between 800 and $900 so between.
506 hundred was earmarked for the tailings.
And.
Waste rock Star.
Storage.
The the the final estimates are will come with the final designs or the more advanced designs. Once we've got the foundation drilling done, particularly on the damn well as you know this this wall is.
Has to be like the current.
Legal wall, it's a it's a seismic area. So it's a highly engineered.
Ah is a bit of.
Infrastructure. It will also just to get like makes it clear we build the wall as we go we don't pull the wool complete rather than the beginning.
The facilities that we have shortly.
Shortlisted.
Certainly cover the current forecast lofty beyond 2040 and some.
And so the fight and I'm I'm walking around the capital estimate we will update that kept the capital estimate as we start finalizing at least the scope of the design, particularly the the wall infrastructure and there are some offsets that we're looking at we got some opportune.
<unk> two to create a quarries within the ore immediately adjacent to one of the sites and that would impact materially the cost of the long term costs and there are a number of other influences I think we're very comfortable with our estimates on the relocation costs.
And and and we do have.
A very broad based support.
For the sites that we've currently chosen so will we.
Currently prioritized I would add.
That's really.
No.
Where we are today.
And and and and and Greg the the returns of this asset a significant you know they certainly meet in any conceivable capital costs were.
You know a 15% return based on 1200 dollar gold and 275 copper.
We don't I know, we've got copper, we don't produce it at this stage and I'm proud of the vehicle, but if it passes the test. So we're very comfortable about this project as a very significant project and it really realizes the original.
Pablo Erica.
Our investment back 10 years ago.
So mark how far away are the two sites from the plant and how many people have to be relocated.
Approximately.
Whether they're the closest of all the thoughts are a grant do you want to comment on that.
Yes, so as you say the sites.
Clearly comes to to the mine and not too far from the existing tailings facility itself.
I mean in terms of the numbers around the recent implemented that.
We still need to get to grips, you couldn't get onto the ground and start doing those.
So that's underway at the moment and we have a clear picture of the exact numbers in the next couple of months.
Okay.
That's it for me.
And Greg as soon as we've got it you know there's this is a process as soon as we have definitive framework agreements will have shared with the market immediately.
Okay. Thanks Mark.
The next question is from creating a client with UBS. Please go ahead.
Hey, good morning, good afternoon, everybody. Thanks for taking my question I'm wondering just zoom out a little bit and think kind of like big picture on what the what the guidance means I think gold prices and copper prices say, they're tracking maybe a little bit higher about in line with where they were in Q.
One.
Mark you talked about I think production sort of rising and you should get some cost absorption there and costs fall is there any reason to think that free cash flow wouldn't be higher sequentially in the second quarter than what it was in the first quarter.
Sure that's a that's a that's a.
Fair.
But let me parse this all is impacted by Tak seven wherein we pay tax I'll pass it on to grab me I'll be able to take you through that yeah. That's that's that's right Mark.
It's very important to note the second quarter is traditionally our lowest cash flow quarter and and that's driven by two key factors. The first is that we pay interest on our bonds.
Semi annually, so that's second quarter in the fourth quarter.
And then the second quarter also has our highest cash tax payments. That's generally when we make the most significant payments. So when we look at our own internal forecast for cash flow quarter twos is noticeably.
And that said, we will see some benefits from some of the Kibali cash distributions that came through in the first part of the second quarter, So that will.
Assist but it is generally our lowest cash flow quarter.
Okay, Alright, Thanks Grant and that's helpful to understand and then I guess, just sort of taking that one step further.
Just sticking on the capital allocation team you didn't buyback any stock in Q1.
You know I think at the pace, you're going you're very quickly you're going to be sort of up in the top level of the.
<unk> graduated dividend framework.
If you sort of get to that top level, where you know the dividend. The special performance dividend is maxed out would you think about raising it I mean or is that the point, where you would start to.
Start to buy back stock or should we think about the the buyback maybe it was more opportunistic relative to the share price.
First the first lost part of your question first and that is if we get to that level, that's a high class problem and and we'll manage it when we get there.
I think that the key about the the ability to buy back stock was that last year, we got caught.
With the market share price really got undervalued significantly and we realized we didn't have a tool to deal with that you know we've had too many shorts enough stock and it would have been great to just go and buy up the stuck in burn off the shorts.
And so we now have that tool available and that's exactly what it's for is when we feel that on a relative basis.
I'll stop process, you know underperforming and there's a sort of a intervention or impact people impacting at our investment and our strategies impacting it will will definitely buy back that stock that the current situation as you as you know is as it is.
<unk>, a very fluid situation and we are monitoring.
The the market and of course, the equity values are almost on a daily basis.
Okay, well just stay tuned on the dividend you do that.
Thanks, Mark Thanks take care guys.
The next question is from Matthew Murphy with Barclays. Please go ahead.
Hi, just had one on the coal unit cost guidance.
730 to 790 now headed to the higher end just wondering if you can break down some of the drivers I guess, if you go from the midpoint to the high end call. It 30 Bucks an ounce.
Half of that three year energy price assumption, that's the kind of the breakdown I'm I'm wondering about.
So I'm gonna pauses to Graham on the granular answer, but I just want to also point out met the the the lower production this quarter.
So as we lift the production and get back to guidance will temper that unit cost profile. So you know.
This is not the base on which to work on just to give it some.
But again Graham you want to you want to pick on the detail.
Yeah, So Matthew.
You're right the biggest chunk of that cost driver is very much energy process, So both diesel and gas.
And we've proven given previously given sensitivities on that and where we you know we are effectively guiding that for every $10 change in the barrel price of oil that gives us about a 6% increase on our total cash costs.
So.
You know when you look at our energy prices from where we were previously looking at sort of $70 and now there are over 100, you can see that that that makes up the biggest chunk.
All of that movement, and then gas on top of it as well.
And then the rest is really I would say more specific commodities, where are we seeing price pressure things like ammonia nitrate cyanide steel bowls, those sort of areas and a lot of those have been specifically impacted.
Through the Ukraine crisis, where you know you've had suppliers either in Russia, Ukraine, and then no longer available and therefore, you're seeing a bit of a squeeze in on those markets. All day, all related to sort of the petrochemical industry and therefore, you know the same drivers as the underlying increase in the in the diesel price.
So those those are the biggest changes.
Got it okay, Thanks Graham and.
And then I saw you were trying to hire for gold Rush, just wondering how youre seeing.
The Nevada labor market these days.
Just just one thing just I'm just a correction that I think I said, 6%, but I I meant $6 per ounce.
Well just to be clear that scene six so their neighborhood market met.
The we've been restructuring our whole barrick.
Human resource Organogram, Yeah, we want I've, just finished Ah Ah Ah Ah global.
Engagement on all our operations with our executive team is looking at.
Progressing our vision of much flatter structures deeper reach into our organization more accountability at levels, taking out management levels, because you know the and and also we have a very big commitment to education both.
Upskilling technical skills, and educating Rochester basis from high school across the globe.
<unk> and <unk>.
And whilst there is a tightness in the supervision foreman base areas of.
Nevada, we've just this this though we replaced about 90% of the people we employed last year.
We have retained so again as we change the profile of our employment base with slightly high on the on the turnover, but this.
This year to date we've.
A replay significantly more than than what are then.
And then the resignations Ole or leaving.
So no I think for me, it's a challenge but at the same time, it's a significant opportunity as we look to give.
Give people more accountability pay people more pay people differently.
And and position, particularly in Nevada.
For a more modern way of mining and we've done an enormous amount of work in Latin America marked killer in the team we're much more aligned with the with my vision of how we employ and how we pay.
Because you have done extremely well and and as I pointed out in my presentation. Two we've we've our succession. Our efforts are really paying dividends and you'll see as we progress and we've appointed senior executives both through.
Promotion or succession and from.
External Ah.
The sources, we've been able to do that without having to say Oh southern says retiring and.
And we're waiting to full at that position. We've we've we've done it well within the time, we've got good transition plans to ensure that we have continuity in our operations and you know again we.
Our focus has been to beef up on a C near what we call Big mine General managers some of the more important skills that that are under pressure are investing in those and so it's a it is a it is a.
Uh huh.
At a point that we have to manage in the market at the same time as I said, it's an opportunity for us to.
Re read redefined some of our.
<unk> 10.
And leadership structures across the group.
Interesting okay. Thank you.
Right.
The next question is from Anita Soni with CIBC. Please go ahead.
Hi, Good morning, I, just wanted to get a little bit of clarity on that cost number. He said, it's heading towards the higher end of the 730 to $7 90 guidance range and I think he said something to the order of about 2% to 3% as a result of higher oil prices. So is that 2% to 3% over the $7 90 or is that just the 2% to 3%.
As getting you out of the mid range and towards the 790 the latter.
That's our nature of nature that it's the latter but I need to point out that you know, it's there's no magic in men aging inflation. It is what it is we've still got some yeah. We've been really focused on synergies and efficiencies and you know we've just finished rolling out.
Our new global platform data platform with all the bolt ons. So we have real time data we can process from a.
Our bodies to mine plans.
And manages and and operators have access to that real time data and all of that is and where you know theres no. Other mining company that has done that and we've used the latest latest.
Technology to two to develop that platform. So that's very helpful. As you know Anita we're very agile and obsessed about our numbers and the ability to respond intra day.
Two changes and and that's where our team is going so yes.
Yes, we've got inflation pressures, but we've also got opportunity to send the synergy opportunities and continued improvements that will help mitigate that inflationary pressure.
As you've seen we've adjusted our board again this.
At this presentation and we got to keep a very sharp focus on inflation and how how we manage that.
Okay. Thank you that sounds like that's a good answer and then the second question was with regards to the Capex. So I think I had you guys. He spent $611 million this quarter and I think the guide within 192.2, so it's a little over them.
On a quarterly run rate and it's actually kind of bucking the trend of what everyone else has done which has been under spending so it's good that.
You're finding people to do the work because that's a different problem that you can't do that but and does that mean that you know the youll revert back towards the.
The guidance of one nine to $2 two or could we see this level of spending sustained no. I think we're just also the where our big projects saw and remember we're coming to the end of.
The number three shaft and some of the big projects in an ongoing capital as the PV expansion. So you know it's it's just the way its profile then and I'm glad you recognize that we are spending the capital. So that's important in any business to be able to deliver on the benefits of those expansion or efficiency problem.
Projects.
Okay, otherwise you have to have production problems later on okay. Thank you that's it for my questions. Okay.
The next question is from Lawson Winder with Bank of America. Please go ahead.
Oh, Hi, Mark next year from you. Thank you for today's update.
Maybe at risk and putting too fine a point on it I'd like to just ask quickly again on the buyback so.
You have.
I've stated in the release that you acquire your shares when they're trading below and consider intrinsic value and just recently.
Earlier on the call mentioned that.
You'll enter when it's relatively underperforming.
It would just be kind of helpful for me anyway to sort of square those two is intrinsic value perhaps.
Then based on moving gold price target.
Yeah, I think there's many variables that impact that a lager with the actual market itself. Lawson. So you know I think you are putting too fine a focus on this decision I think what we don't want to do is get caught like we did last year and and and don't have any tools.
To deal with a very soft our share price so.
No I think right now we're you know it's got it's an interesting time I think also you need to.
Put my strategy and perspective, you know, we when we set out to build this new.
The value focused.
Organization.
One of the key focuses was to get rid of the debt cleanup and and and make sure. We focus on the best people to run out you know top quality assets, but also what we what it this quarter quarter. One was a very significant quarter, we dealt with a lot of critical points things that work.
Worrying.
Analysts and shareholders alike, but also we strengthened the balance sheet is now makes us independent of the market and so we are we're a very different organization than we were just three years ago.
And we've got you know and environment are ahead of us that I believe is is nobody listening to this call will probably very few.
Have been there before to see hopper inflation, and and and and again the the globalization of those sort of stable years of the life. The back end of last century.
And so you know managing a situation like this you need the balance sheet strength again, we didn't just.
Transact and keep all the assets, we turned them down and making sure we keep those that can manage the cycle.
So all that is part of it and the and the share buyback strategy is an integral part of that we are completely focused on making sure that our shareholders.
Our.
<unk> and benefit.
Our business in a material matter.
Thank you and if I could ask one more question just.
Your latest thoughts on the potential to grow copper production in <unk> and in particular.
Or do you see the basis for growth there whether it be an expansion of one.
We're building, a new mine or potentially acquiring existing assets.
So the opportunities to have to be all of the what you point to our right now our focus is still delivering a more efficient streamlined.
The model, we are forecasting a significant improvements in production and a life of mine plan just on Lamont to.
Touched on you know the opportunity we have.
Uncovered two boats are more flexibility into the operation.
Zambia has Ah is a country with a new government, that's rarely business friendly and so you know a lot of the conflicts in the industry, which led to.
Investors in mining companies, leaving and disposing.
Disposing of the assets are that's sort of gone away.
At the same time, you know as we keep reinforcing we're very disciplined in la.
Looking for opportunities that fit our investment.
Filters and so.
Again right now on this this phase of the market discovery is a good thing and we have beefed up our.
Our exploration our competency in the Central African copper belt, and and we're definitely focused on.
Building, the models and making sure that we we or pursue.
Opportunities and of course, the Zambian government is very open and extremely willing to work with any long term investor.
Invest and and so we have a built a strong relationship with them.
And particularly the president and.
And so let's see what it brings and of course again, there's some stranded infrastructure in.
In Zambia, and and and the waters of concentrate producers so.
As we look at everything if it fits our criteria, we'll pursue it if it doesn't one thing we can demonstrate as zombie.
Zambia meets our long term filters as we speak today and it passes the.
The investment test it.
275 copper.
Thanks, very much for your thoughts.
The next question is from Tanya you could connect with Scotiabank. Please go ahead.
Great Good afternoon, and good morning, and thanks for taking my questions a lot of them have been answered, but I do have three remaining three.
Three quick ones.
First one is just on and thank you for the quarterly guidance.
You provided on the asset.
In your press release, just from a bigger picture, maybe micro Gram can you guide us whether we are seeing progressive quarter quarter quarter over quarter improvement with a strong Q4 and sort of our portfolio. Our week 45 55 production first half second are we.
Sorry, 48, 52, I'm, just trying to get a feel for the portfolio quarter over quarter, and then first half second half I would say of course.
What we do when you have these back.
Backend weighted profiles Tanya.
And bring them forward. So that's the focus right now is bringing some of the quota of full production forward.
And we've got big commissioning.
And ramp ups are particularly at turquoise ridge.
Gold rush right at the end, yeah, there's an opportunity there because.
It is.
Cortez moves quite quickly up the the value curve towards a million ounces starting next year.
And so we want to get that up and running.
Your.
45 48.
50 to 55.
Way of between those ranges is probably realistic grab you want to add anything to that.
No I think that's right I mean, yeah.
Nice to be in the middle of those two ranges, but yeah somewhere around there.
With quarter over quarter.
That's right Tanya Yeah, it's a progressive process okay perfect.
And I wanted to come back.
On the inflation I know that you know about 40% of your cost structure is labor. So just wanted to make sure on that Frank one if you are seeing any labor pressures and two if you are if you have any labor agreements that need to be renegotiated this year.
So I think the team in Nevada has done an excellent job on.
The Guy she 18 with the one union.
The team that we've got that we inherited in the deal with Newmont.
And that's that's established in and set for another year.
And and and again the labor engagements on mostly in South America and Africa, we're largely through them.
And you know that's normal course of business, we're not seeing that sort of inflation.
Across the other regions Israeli the United States and again, we managing a Tonya you know that it's not it's not at all.
It's difficult and but it's also what we're finding is that the.
The the the when we employ people, where we're not short of applications and when we will employ them in one of the things. We really obsessed about is we want people to join us that are aligned with our vision and our DNA and we don't see people as numbers that you know.
Come and go we were very focused on building that.
Human Capital Foundation, so yes, it is and in the U S. As is rarely and it's the way that that the U S. Labor market has responded to COVID-19 and the alternate opportunities and of course, you've got some new projects being developed in the junior.
As a you know promising.
Promising minds and and employing people.
So all of that dynamic is real but I wouldn't say that it's it's a.
That's why we run companies as we manage people.
So.
Okay. So that sounded like you don't have any contracts.
No no we've got no contracts that that would risk out organization.
And maybe the same on the supply chain contracts do you have any renewal like finite or anything like that no. We have we are very you know we've again.
<unk> taken out significant hundreds of millions of dollars out of the supply chain procurement costs and Barrick.
And we still got some way to go to before we comfortable that were super efficient.
And we know the real problem and the team across the group have done a remarkable job managing.
You know we come from that break ground very dynamic situation and we've managed the COVID-19.
Impacts, we manage the echo a sanctioning of Mali.
Which brought to challenges on the logistics side, we've now managing the eastern Europe .
Process, along with what she's not talked about the impact of the Covid Lockdowns in China, So and again, what we did is when we when.
When we put the two companies together, we we slimmed down our inventory our store inventory down to a month, because we need to clean off to all the working capital.
When COVID-19 reared its head, we Jack that up to three months.
With the with the cross is unfolding and there was lots of avoiding it was coming we were already running around and moving some of our eastern European potential impacted our consumables up to five months and we're pretty much you know.
In that space on the on the contracts we have long term contracts. So that's the first thing. We did is a role in our renegotiated put in long term contracts and work more on a partnership basis.
But yeah.
Theirs is in times like this there's then theres sort of knee jerk reaction where people use that.
The concept of inflation to widen their margin, particularly.
Particularly on the supply side, and then others that work open open books with us and we will definitely work with them to make sure that they stay in business profitably and so.
It's you know that we don't look at it is just and that's why we've got a very effective.
Our supply chain partners.
We will manage this because the one thing we don't want is.
Our service providers to go out of business.
Okay.
And then just on the.
You mentioned in the beginning.
You have in your guidance.
Hi, Jeff.
Reflecting a 5% inflation and now youre seeing 3% Mark that puts you at 8% on the cost side operating costs can you comment on the capital side, I mean everyone's focusing on me.
In constant we haven't heard much about what's happening what are you seeing on the capital side of it.
Continue some of the main belts.
The big capital projects as Ive indicated before the big pressure at the moment as steel costs and we pre purchased most of our steel city for PV and and for the.
Because rich number three shaft and again, we trade that quite actively.
Oh no representatives, so we manage.
That that risk.
There has been some impact on the on the timing in Pueblo Viejo, which we shared with you last quarter.
Of course of the.
<unk> impact and getting some of the steel are manufactured steel into a Dominican Republic, but.
Again, that's all baked into our forecast so as we speak today that there are the there's there's no material impact on now are any of our capital projects scribe.
No I don't on the growth projects I would just say on obviously on the sustaining capital quite a bit of the capital there is stripping and and clearly that does have a energy component to it. So some small pressure there, but we don't expect to be going outside of our guidance on capital.
Okay and then my final question, if I could just on poor ground marketing et cetera, and our negotiations are going Wow, it looks actually slipped a quarter. So we're going into Q3 2022 for startup and fast.
Does that mean that it would be Q2 of 2023 that we saw and I think the six months right.
It could ramp up to full capacity, so should I be thinking Q2 of 2023 and four.
Ramp up stage for operation Yeah. That's a that's a reasonable assumption of course, you know why do we delay we are still doing preparation work. So we cant do physical mining, but we can work on making sure our equipment is.
Properly.
Serviced and ready to operate etcetera etcetera, the big challenge is gonna be employing the people we've got about a thousand people employed at the moment, we gotta go too.
When I say, two and a half.
Yeah.
And then just to update you where we are we've we've signed the P. P. C. I and most importantly, you would've seen ahead of the elections, because parliament stopped passing legislation now after the elections, we got the approval of all the related legislation.
And that needs to.
Endorse our framework agreement. So that's all in place, which which is very material for us and we have won signature outstanding on the shareholders' agreement.
What do we need to.
Incorporate the.
The new Polgar, our company and therefore and with that apply for the.
S M L.
The special mining license.
Sound ASML, that's part of our agreement.
And as soon as we get that sorted out.
We'll be able to then apply for ASML and then it's a procedural thing we work with our minerals resources authority and.
We will deal with the issues and we'll be moving forward and we are saying we should be.
Uh huh.
And the other place.
Two two.
Formally start around October .
At this stage.
Remember there's elections now too so it's going to.
Impact on our planning.
Okay.
So six months after that.
Okay great.
Okay. Thank you.
Oh no.
The next question is from Mike Parkin with National Bank. Please go ahead.
Hey, guys. Thanks for taking my question with respect to PV can you just remind us what your current tailings facility has in terms of capacity.
<unk>.
Is there a tight spot in terms of getting the new and improved in constructed and ready for initial deposits.
<unk> versus when the current when it gets filled up.
So the the we've got headroom out to 2027.
With some additional investments.
And you know, we would expect to be ready to process that.
Long before that I dunno granted.
Yes.
Do you have are you on the call or Jordan's deal, maybe you want to just give the detail.
Yeah, you're right March 2027.
The current design.
Well, that's something that you at least what we have already built as is.
Definitely we could raise the wall sooner, but and are based on the schedule that we have no we don't see that as necessary, but what.
Is that fair.
While we construct and Youtube.
John is there anything you want to add.
No that's correct.
The five years up until 65 meters and we can do.
Go for an extra three children that facility with the with the redesign so you're comfortable that you have the time.
No.
So if I was to get to.
The next THL credit.
That answer your question.
Thanks, John .
If you decide to exercise that additional three meter lifts that doesn't require any government approval, that's all of them no, but it's capital.
I'd prefer not to do it and right now there's nothing no plans to do it.
Okay. Thanks, guys. That's it for me thank you.
The next question is from jet tenure go with BNP Paribas. Please go ahead.
Thanks, Alberto Good morning, good good question unrelated to credit.
Good analogy on cool technology.
Acknowledging you had experience with working in challenging chose to change.
The question is more about risk assessment, which is how do you ensure that there aren't other potentially dangerous and you mentioned you're looking for elephants.
It took them to the new mining is too volatile can do gene.
It is true if the project itself.
How do you address 15 it against the known.
Right.
In the future.
As an example, you tend towards putting alone food Mongolian project.
Including international agencies, but that didnt prevent the government to renegotiate the contract which got concluded earlier this year.
No.
Just trying to understand.
<unk> to risk assessment, and presumably you've used the same copper and gold prices that you use for other large scale projects have you used it.
I mean to me.
For this project.
So there's this project pauses a hurdle rate of around 15% at 1200 gold and 275 copper, it's we don't change that and and just to point out you know risks are binary in mining either have a mono you don't and I would.
Point out that you know, it's it's unfair to suggest or blame the Mongolian government for the renegotiation of.
The Mongolian Rio Tinto investment the reason was because Rio didn't deliver on the original plan and ran up a massive debts. So everyone. Every project's got a story, we have a very strong reputation of delivering on what we say and and that's the first.
Trick and building strong license to operate.
Yeah. This is a asset that has been effectively.
Therefore, barrick for over a decade, it's been a matter of.
Dispute between Barrick and the Pakistan government.
And and that's dispute went to arbitration. It received award it was awarded against and but at the same time as you know in Barrick in and myself. We believe in finding solutions are not ready focusing on fighting with our host countries.
And so the product of all of this negotiation, which I must say so I took a enormous amount of effort from a negotiating team is a clear 50 50 as we've demonstrated we is is the right way to look at partnerships.
In Tanzania, and more recently in Papua New Guinea.
And so.
And on the same time, it's the first time that the baluchi.
Stan.
The province has been.
Been recognized and will receive a substantial component of the benefits of this.
Investment and.
And and again we.
Our commitment to ensure that our that we started investing in the community and particularly on Upskilling the village people.
Head of the mining operations and there's so many things that have been neglected there and one of them. For instance is just the accessibility to potable water for instance, and in Barrick. Since you know we have three primary pillars and our commitment to our communities potable water primary health and primary education all of which.
Need improvement in.
In that region.
Yeah. So we've worked in these sort of environments before I've spent my entire life working in these sorts of environments are this is a perfect opportunity for the mining industry just to demonstrate what it can bring to the economy of our country as we've as we've been able to demonstrate in many parts of the.
A world.
So that's I think this is a very fair deal, it's a deal in which the government of Pakistan all investing in so again, a new way of looking at it.
We are bringing the international agencies, and it's a very material and it's the biggest single investment Pakistan scene, and it has enormous social and economic impact for the entire Pakistan country, and and then specifically the ability Stan.
Province.
I'm I'm very comfortable of course, they've gotta be challenges and bumps along the road.
But so far I experience the.
The spot starting in with sort of a conflict conflict situation.
The the the state of Buckhead, Pakistan, and we've been through many governments just to remind you in this process has always upheld our agreements.
And I think that bodes well for for the full for a long term successful partnership with the people of Pakistan.
Thanks for the detailed explanation just to follow up briefly on between project is the decision to reactivate obviously, there is a long history.
Obviously, there was a dispute but.
Was there anything else.
Competing against this project for capitalism, either organically or Inorganically is the quantity of geology.
The teams just appointed difficult to compete with the losing your near term time horizon.
So we've got another really big project in partnership with Novo Golden Alaska, which were.
Moving forward on as I indicated last time I spoke at a public forum and the question was asked.
They are mutually exclusive projects, we can afford you've seen our balance sheet and you know in my lifetime I, both three months at a time.
And definitely Barrick and its executive team within the three regions. Every one of those teams are quite capable of shepherding, a new tier one asset into our portfolio. So yeah.
Yeah, Rick addicts fits under him the latter.
Latam Asia Pacific region.
We've still got the African region, and and the North American region, and and Donlin fits in under the North American region. So that.
We are we are we are never going to sequence world class assets that meet our filters, we're going to invest and bring them to account.
Thank you very much mark.
The next question is from Adam Josephson with Keybanc. Please go ahead.
Mark and Graham Good afternoon, Thanks, very much for taking my questions.
You mentioned earlier just about your your stock trading at a discount to what you consider to be a true value and on the last call you talked about the discount to obviously newmont.
Just wondering how you think about you balance your desire to invest in tier one assets, which you obviously you have many of them.
Some investors perception that there is more risky than this year because of your willingness to invest in and what they consider risky jurisdictions until youre trying to do the right thing, but balance that with.
Whatever investor perceptions are about the recipe nuts. So of your portfolio. So how do you kind of balance those two things given your belief that you continue to trade at a discount to fair value, presumably in part because of these perceptions.
Okay. So let me try and deal.
Deal with that quite complicated question. The first the first part to it is.
If you look at the second to last slide outperformance against the Gtx is at yeah. We're above the Gtx performance when you look at it.
Over the last 12 months six months or since we incorporated the joint venture or or merged with Randgold. So yeah. We are performing in the market at the upper end of course as you pointed out Newmont recently has been higher than that but this is a long term game.
And and again, if you look at what we've come from a negative <unk>.
Net debt of over 4 billion to a positive net debt of.
$700 million, so and when you look at our cash flow and you look at that and we've paid out.
350, I mean $3 $5 billion of.
Uh huh.
Cash both in the capital reduction.
Capital returns and the dividends.
To our shareholders over that three years so yeah.
So to conclude that Barrick is a very very much a sustainably profitable mining company.
And if you if you're if you stop and there are many examples of it when you. When you think I started randgold was $10 million in 1995.
And look where we've taken that and know Barrick.
And and you look at the big companies that were there in the market with us back in 1995, so many of them have disappeared.
Because mining is a consumptive industry and you know risk is is how you manage it and we just have to look at.
Chile, and Peru today, if you look at the dynamics the tax dynamics within the United States and how it changes from one.
Government to to another.
And you have seen.
Hmm.
Have a great the challenges and across our Africa.
And the point is you know people Miss the real point of mining and that is if you can partner with your host country, you create value and deliver meaningful change.
The contribution to the economy and the people of your host country.
That's called license to operate which we all look at there's some sort of intangible tag. It's a genuinely important component of our business and in Barrick.
And so and and you know if you Gotta go.
No.
It is a bad asset and a good country, it's still a bad asset.
A good asset and any country is a good asset and and and to bring back yard to your point about.
Mongolia is that it's how you exploit it and share the benefits of that exploitation that allows you to keep that asset or not they're not finish off by somebody always say on that is have you ever seen the landlord kickoff tenant that's paying full re.
Rental.
So yes.
That's really our philosophy on it and and we know because I know from experience as we deliver on that people will want to own our stock.
No I really appreciate the market just one other question Newmont was asked this as well about yeah. There's all this discussion about inflation for understandable reasons and that prompted.
A question on their call about potentially revisiting their gold price assumption for budgeting purposes is that something that you.
Considered an end and weigh the pros and cons of and what is your thinking along those lines.
The thing that is now.
We've shared this is the market going back to 2001, we have a policy. It's a it's a formulaic policy that we have that's why we bought we you know we've kept the gold price where it is we don't make it up.
Look at this sort of who does what.
Where the gold price and we we we set a long term gold price based on input costs.
And we have a reference point going back to 1998.
Where we built a model of specific bundle for exactly that reason and we've used the gold prices are long term gold price a full 50, when the gold price was 260 <unk>.
And of course as you know in 2000 then.
11, or 2010, when everyone Chase the gold price up.
And are we stuck at $1000 and so we'd be moved from <unk>.
400, 450 650.
Through the first decade of this century stopped at 1020 10.
And we moved up to 1200, when we did the deal with with Barrick because again when you settle with the gold price without a cost impact you you impact your.
You were cut off grade and and also your production profile.
And so yes with inflation.
Coming through on our costs that it makes sense that we will automatically and continue to review that we do anyway, because we run all our reserves at 200, and our resources and we have full mine plans that support our resource estimates at 1500, so and and.
We look at sensitivities all the time Rod quick and as his group that's their job and so you know there will be a time in the.
The gold price will go down and as there will be times when the gold price what are the golf Ross who use might go down.
Yeah, that's that's inevitable in AR.
And our and our industry with the input costs are changing and they most definitely change it.
No I just wanted to I appreciate that but I just want to follow up to that when might if you were to change your gold price assumption. When do you think that might be would it be end of this year is there any kind of time timeline you could give us. So we review the AR reserves and the assumptions every.
Our end of the year as part of our declaration of our resources and reserves. So yeah. We're very comfortable that we remain profitable that are assumptions throughout this year.
Because we've set those plans and they.
They are designed to make money at 1200. So we've got you know a fair margin.
And as we do every year, we'll relocate it when we come to reflect on our reserve statements for the end of this year.
Thanks, very much mark.
The next question is from John Tumazos with John Tumazos very independent research. Please go ahead.
Mark. Thank you very much for your cost breakdowns in great detail.
I see the Nevada costs per ton for open pit mining as Roosen.
39, 6% over five quarters.
That's a very.
Accurate measure of industry costs.
Great.
It involved were great.
Your cash cost per ounce over five quarters of only <unk>, 22%.
And this was a bad quarter with slow output to next quarter should be lower.
The copper division.
Cash costs over five quarters have only risen 12, 4%.
Yes.
I wish I was you know where you are and I could shine your shoes.
How is the physics.
Of your cost per ounce or cost per pound only rising a third as much as mining cost per tonne.
So great.
Great job of controlling costs. So we are obsessed about controlling costs, but I think you've sort.
Sort of laid out.
Metric that we wrestle with all the time and I'll try and deal with it so that the copper costs. You know, we we lamont when when we really got our teeth into it was very inefficient and we effectively halve the costs of mining in Nevada, and we not just putting a new fleet, so you're going to see even.
Better efficiencies and and of course, we we all are working in an inflationary environment and so there will be some cost creep on that and that's that's the flow through with.
The manat the the same goes for jumbo side, which is really driven by our expansion of the mining there.
The efficiencies of mining so we've effectively increase the throughput or production by 50%.
And as you know in mining the economies of scale are always always win.
And so we've dropped the grade and jumbo side slightly and but we've increased the efficiency with the same infrastructure. So we've increased the throughput and the copper production materially and so that drives for copper copper was lack of neglected part of our business.
And so that's where the extra efficiency comes from.
Nevada Theres a is a big change in how we managing we've got some.
<unk> fleet that we have to use too.
Sure up an old pit as part of our commitment to the first nation. So that's that's there's some inefficient mining there. We are also doing some big tilings.
Upgrades again, we try and sequence that when we strip for mining purposes. So we can move the material to the tidings facility or or.
All the leach pads, when we build new leach pads.
And again, the Greg and the team and in Nevada have been looking at.
What are the next steps you've got inefficiency is looking across the Nevada group and say are we allocating our fleets are both underground and surface in the most appropriate manner.
And and still further breaking down the the the fences so to speak between AR and individuals are full big operations. We've got it in Nevada. So again, you'll see that that cost are open cost cost will come down in the Nevada. So those are really the drivers we've got some additional <unk>.
Cost pressure in.
Invalid era, you would've seen and also we operated as you correctly pointed out our lower production for the group and particularly for valid era.
We are investing in a new fleet or a second hand, but relatively new fleet in and in.
Argentina, and that's going to bring with it some efficiencies as well and then we are mobilizing fleet, which we haven't started yet, but we are mobilizing faithful program.
In itself also bringing a.
Significant improvements in our.
Cost so that's why I say, when we talk about cost, they're very variable you can't blame it all on inflation.
Some of it is efficiencies some of it is you know the age of the equipment and so on but we really drive our unit costs. That's how we run Barrick, we don't run per ounce, we run per tonne unit cost.
I hope that answer your question.
Thank you if I could follow up several years ago.
Nevada cost per ton for Barrick was as low as $1 40 per ton.
And it appeared to be as good as anybody in the world are pretty close.
Do you think it's possible.
To get back under $2 a ton.
And then those cost per ton were before the newmont merger, and however that affected improvement or.
Otherwise, but do you think it's possible to get to $2 a tonne again.
So $2 you need 300 tonne trucks are a big pet and you know the Nevada is open pits are quite far apart now there is.
Efficiencies in.
And I'm, calling pets still.
But that's the point I'm, making.
The real cost now and now it's changed a lot I think you're talking about.
A decade and a half ago.
I think there are long gone the other days, where for it with a 300 ton truck or or 170 ton truck, which is most of the stuff that we use.
You get down under $2 to $2 20.
In Zambia, we are close to that sort of $2 $22 50, with big 300 ton Komatsu.
Yeah.
Thank you very much.
There are no more questions on the conference call.
Well. Thank you everyone that was quite an exhaustive set of questions. I. Appreciate the interest we stayed the course, everyone has sort of.
Sweating under the the the lots, but appreciate your time and your interest again, we'll be seeing you. Some of you and and Miami next week next week, hopefully end and again will be at indaba for those who are going to Darwin and then some of them.
Our team will also be a P D C and Toronto and otherwise. Please if you have any further questions reach out to the team. We always you know very.
Very committed to making sure that you get the right.
Information so thanks, again and have a good day.
This concludes today's conference call.
Do you have any additional questions. Please contact Barrick Investor Relations Department you May now disconnect. Your lines. Thank you for participating and have a pleasant day.
Yes.