Q1 2023 Barrick Gold Corporation Earnings Call

So is it do you expect to make up the shortfall in in the in the completion over Q2, Q3 or will that kind of pushed out into Q1 and Q2 into 2024.

No. It is exactly as you say that the intent is to catch up by.

We were looking at Q2, I think coming through the winter, we're looking at Q3 for the catch up.

Alright, and then a few specifics.

So I guess, you've got seven trucks at this point is that correct.

So far operating yes, yeah, and then by the end of the year, you're supposed to have 18 that you need for operational readiness.

Is that the case, we have another 11 coming.

I'd have to check the delivery dates, but it's all per our schedule, we've doubled down and check to make sure we're going to achieve everything we need to do for material movement.

Sure and then just moving onto the TNF I'm just wanted to clarify is a downstream tailings definitely write Naughty modified center line.

Downstream with and we do have a cutoff wallets deep soil mixing and we're doing an abutment or embankment on.

On the TSS as well.

Which is where a lot of our materials those two right now for the waste that goes down onto the tusa.

And then the other deliverable that I was thinking about for this quarter.

Did the did the crushers get delivered yet.

Crushers, you talked about the high pressure grinding rolls are the crushers pressures pressures are there.

The crushers it yes. It was it was listed as crushers in terms of what we.

In our mind towards from last September that the crushers, what should have been delivered.

Alrighty crushers that pressure there.

Okay, Alright, that's it for my questions I'll pass it off to somebody else.

Thanks Nina.

Our next question comes from Arun Lambda of TD Securities. Please go ahead.

Hey, guys just a couple quick ones on green sounds kind of largely been answered, but I guess first.

Can you just remind us when the timing of that independent study is going to come out and I'm guessing. It's before the site visit in September and then just lastly, you mentioned you mean all of the buildings are enclosed equipment onsite accept the HPE Jr.

In your view and can be Gregor for anyone what's the critical path item right now to kind of keep everything on schedule.

So on the on the QRS accident. We're we're in the mix of it right now I think that'll be done probably sometime in may and we can we can.

The market probably in May or June .

So long before the September site visit.

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Critical path has been the same since basically the start of construction, which is through the <unk>.

The milling facility.

So really Houston Houston to the process plant building, which getting getting in and closed which was done in Q1 was critical starting the ball mill installation, which has has commenced on schedule. It remains critical.

Critical path.

Until we get through the commissioning of that because.

It is the core piece of equipment, but we've got the two mills being installed in parallel previously scheduled for cereal so that should be able to keep everything on track there and Erin I think I think when we spoke in I guess it was January .

You asked me what.

Kept me up at night at Greenstone, and it's going really well, but the same thing I said then is the same thing I will say now which is we just have to maintain the productivity levels of the.

Contractors that are doing the mechanical electrical piping installation at site.

And.

That's a lot more challenging when the buildings aren't in close at this point, they're all in close we're moving past winter at greenstone now and things are actually starting to move very quickly there. So.

That's the main critical path keeping that productivity up as we get the mill installed but things are looking really good.

I'll just double checked crushers are on site and secondary crusher installation work is underway.

Estimated time of approximate completion for that or is it just kind of.

While we in the non binding term sheet that we signed with sandbox had had an outside date of September of this year.

And so the.

Equinox is working on the final documentation and then that would lead to sandbox doing a financing and then closing that transaction. So right now the outside data September and and that's the data was in the term sheet.

No that's great. Thanks, a lot and congrats on a good quarter.

Thanks Sarah.

Our next question comes from Mike Parkin of National Bank. Please go ahead.

Hi, guys. Thanks.

For taking my questions and congrats on the earnings beat for the quarter.

Most of my questions have been answered just can you give us a bit more color.

At mesquite around the permit.

With respect to mining in the path forward there in terms of what you expect.

At the asset say next year and the year beyond.

Well the permitting for mesquite relates to.

Every time, we do a drill program we have to permit them. So that always is in the queue is to get every single drill program being able to be permitted so it's a stepwise progression.

We are looking at one of the one of the areas, where we would like to be able to mine that will involve some modifications to infrastructure.

So that's that's underway and we also had applied for a pet high increase which we recently got granted.

So theres always permitting modifications to be done on a relatively tight footprint in a very large mine.

So.

It sounds like it's fairly low risk of being an issue for 2024.

Well, yes, essentially I would say the key thing is looking through 2024 and into 2025, I mean, we need to get all drill program is done and be able to support.

Production goes from the end of 2024 into 2025.

Okay.

And then just flipping back over to greenstone.

Can you just give us an idea of where you are staffing are you at peak contractor employment or is that still yet to come this year and that can support.

Increased productivity.

In terms of like your monthly completion rates.

So while we peak through the summer.

Due to a combination of operations and current and construction personnel.

But that was that was to be expected.

We've been through all that.

Housing plans and everything.

It will be tight, but it's part of the plan.

Yeah.

And then in terms of like your for your regular worker staffing how is that going you were kind of highlighting some wins in terms of looking to be kind of the employer of choice given our long mine life in the area.

Is that still tracking nicely.

It's tracking nicely, but it's not without challenge.

The team at Green zones are working hard to get everyone. They need for for the operation and I know they are attending a lot of different.

Employment.

Jos in conferences, and we're very actively hiring and so if anyone is interested in the job of Green zone, you can check our website or the Greenfield website, we'd love to hear from you.

The biggest challenge is be more.

Technical roles.

No operators electricians heavy duty mechanics, those types of roles are certainly challenging there is a lot of competition, but it is going well and we're keen to talk to anyone who onboard green zone.

And our peak will be June for personnel on site.

We're about 870 at the moment, but June piece up just over the phone.

Okay looking forward to tracking the progress on that one.

Thanks, guys.

Realistically I have one follow up question from Anita.

Our next question comes from Anita Soni of CIBC World markets. Please go ahead.

Hi, Thanks, I was just going to ask about the project Capex spend if I look you are on schedule in terms of the capex spend at around 65% at the end of this quarter.

But given that you're a little bit behind on the actual progress.

I guess.

You try to catch up over the next couple of quarters on our progress will that have any impact to.

To the overall capital or.

The capital spend.

Pattern over the next couple of quarters.

Yes, Peter we don't believe it will.

Right.

And so could you provide some color on why it won't.

We believe we.

Within our budget overall contingency for those kinds of items that might be taking more hours than originally plan that that contingency sufficient to satisfy.

An increase if necessary.

Okay, and how much of the contingency remains I think when you were on the tour I believe some of it had been used up already but I don't really have an update on what the contingency was since then.

Yes.

That is part of the Q area that we're going through right now so.

I'm, sorry, you're going to just have to wait.

For us to finalize that work that we're doing.

Okay, and I just wanted to dig a little bit more on this on the tailings dam I guess, what I'm trying to drive that is.

You've got seven trucks right now I think you were supposed to have about nine by the end of this quarter and then to me. The truck delivery is kind of critical to making sure that your TNF is built on time and available for when you start production. So could you give us a little bit of.

Timeline over the next six months nine months about when Youre expecting the tracks and what needs to be done on the TM off to be in order to be ready for Q Q for the first half of 'twenty 'twenty four.

Yes, the Tms has to be available for use as of.

The fourth quarter of this year that doesn't change.

I'd have to go back and check on actual truck numbers, but Daryl.

Daryl debenture with our technical services team monitors.

David New hook on the operations side.

Greenstone.

It has for progress.

I'll come back to you on that one.

Sure I mean.

In the.

Technical report it said it was nine by the end of this quarter and 18 by the end of next quarter. Okay.

Because obviously you've got to do a lot of moving reversed in Q2 and Q3, so you need <unk>.

We also modified the mining plan.

<unk>, which we talked about last year that we went from I think the original plan was about 41 million tons. We modified the plan for the first period to be about 30 million tonnes, which meant that we could push off some of the trucks and it had no impact overall for the.

<unk> first five years of operations.

Pushed some of the tons into the operating period.

And that was for the stripping rate that was so you've basically giving yourself I guess 10 million tons of wiggle room on that.

Yep Yep.

Yes.

Sorry, there is a disconnect for you.

Can come back and check on the delivery times for it and we will come back with an answer for you.

Okay. Thank you.

It's a good point and just kind of further to your point, we've actually put in orders in advance on the trucks that we need.

<unk> and shovels.

We're very comfortable that we're going to have all the gear, we need in the time that we need it as we've kind of accelerated.

The ordering up and meet commitments on that year.

Okay. Thank you.

One question from online if you've got all the permits that you need now at RDM.

Yes, with the exception of the permit for the.

Filter tailings storage facility, we do have one permit which was four.

Some additional low grade dumps that were looking at topping up our feet. We know that the permit has been issued and we're just waiting for the signed version of it to be delivered but.

We consider that to be in hand, so just filter tailings storage facility, which for us is a shift.

RDM and obviously as the way to go in Brazil, because all mines are shifting towards filter tailings storage facilities for the future once they finish their current designs.

Okay. Thank you our great.

Dave any closing remarks.

No I think I think that sums it up well and as usual I'll just say if anyone has any further questions you can always reach out to really enter myself.

The website all of our contact information is there.

Thanks again for attending the call. Okay. Thanks, everybody for joining US today, operator, you can now conclude the call.

Q.

This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

Yes.

Yes.

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