Q2 2023 Barrick Gold Corporation Earnings Call

Ladies and gentlemen, thank you for standing by this is the event operator welcome to <unk> results presentation for the second quarter of 2020 three.

Following today's presentation, a question and answer session will be conducted.

If you have a question and are joining the event by telephone. Please press Star then one on your telephone keypad.

We will also be taking questions from those in the room.

As a reminder, this event is being recorded and a replay will be available on barrick's website. Later today August eight 2023.

I would now like to turn it over to Mark Bristow, President and CEO of Barrick.

Please go ahead, Sir thank you very much and.

So in controlling this.

Welcome everyone. Good afternoon for those across the Atlantic and good morning for those the side of the Atlantic and a special welcome to all of you have.

Given up some of this study where.

Where they are outside to join US personally. Thank you for coming appreciate it.

I think as I felt I should start on a good news story.

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And and that is that and I'm sure you all know that's a city that is sitting in the hole here that we saw the average gold price for the last quarter at an all time high.

We're seeing a lot of people.

Suggesting that the gold price is not performing it's performing extremely well.

Hum.

For me the more interesting part.

Is that some see that says driven by a full cost a decline in interest rates and certainly having.

Recently travel.

Travel rock around the world.

I really believe its more about a risk on situation as we wrestle with.

The global economy, and its and the globalization of the world as a whole and and the fact that China is not I don't leave Gotta get back to where it was at Sydney getting recover but not back to where it was and and and again our supply chains and in general investment.

In the economy and.

And and uplift meant into all of some of those more challenged economies or Ken if it if we don't stop and invest in it and so otherwise.

Otherwise or are we going to do is.

Create a future where the rich continue to get richer and the poor get even PURA and so you know we held our.

Mining summit hidden.

Is that a bad last weekend and it was very interesting for me to see the realization.

From Pakistan that things needed to change and there were comments about you know its been.

70 years of mistakes and.

This country has everything that it needs to get on top of things.

And what it it's got the people bought fall, but it needs to care about them.

You know I'm drawing from the the leadership that spoke at the opening of the mining summit.

It it it needs to focus on development and not just.

Exploitation.

And finally, it needs to attract foreign investments and in fact, the minister of Petroleum pointed out that the strategy was to turn red tape into a red carpet for investors.

And that is very interesting that's a massive trial decision as and as you know that country's got many challenges.

And I think we've seen West Africa.

What happens when we neglect these developing countries and.

And we and we've spoken.

Many times to some of the major.

Economies in the World about West Africa, and the importance of staying there and engaging in conversation and working on investment and instead of just lecturing.

And and and and and again the the elected governments.

Governments right across that region have failed.

And we don't seem to want to do anything about it except lecture.

And so there's a big need for the world to relocate hot manages its business and and again.

As far as the policy towards mining and metals in the United States guys. You know it it has to reflect on.

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How important it is just to exploit other peoples natural resources, rather than develop some of its own and and engage and support and build a real mining industry because that's.

What.

The required.

If we got to have a better world ahead of us and so I think that they are and they certainly is conversation starting around those.

Those are topics and and as you know I've spoken a lot about the importance of partnerships and development.

Cross the world in Barrick, because hopefully I'll share with you today, what we've done in the now the real results that are starting to materialize now.

Policy of driving partnerships with our host countries.

Around the world.

And so and I'm also going to spend a little time to day an ad.

On.

Focusing in on exploration because you know this ongoing debates avia only grow through M&A and we've put a lot of effort in the last four years and widened fixing our assets.

And to building that bench strength and exploration and we've got some initial point is now starting to materialize, which we will share with you and we're super excited about being able to actually support some of these early results with real borehole Ah results bother.

And of this current quarter. So that's the sort of outline of my Macy jigawa to get across today.

And.

And I I would start first with just.

Just a quick look at well before I go further as usual presentation is preceded by a cautionary statement as you see how on the slide. It's also available on our website should you want to study it in more detail.

And then moving on to our Kpis.

K P ours for this past quarter.

As the at the beginning of the year, we we guided.

That our results will be weighted.

Roughly 45 55 in favor of the second half.

And then certainly as you can see that trained is already evident.

In quarter two.

The improvements over quarter one.

It was largely due to the completion of schedule maintenance on.

Collins processing facilities, which boosted in Gm's performance as you see it we will see in the number of touch on it just now and the strong contributions.

From our Tanzanian mines and Kibali in particular.

Well and of course, you would have seen two valid area had a good quarter better than planned.

As always I'll highlight the key aspects of our operations as I take you through the presentation at this time.

As I said, a two point to the progress we are making on all fronts as far as exploration got.

So looking ahead despite the.

Some.

Equipment challenges relating to PV ramp up we remain on track to.

Mitra gold and copper production guidance for 2023.

And they will should drive the costs.

Back down towards guidance.

And Nevada is expected to build on last quarters post to maintenance improvement PV will continue to to ramp up throughput to as it expands the plant. We have finished the commissioning, but we've got now and it's stuck in the ramp up.

And in Zambia, the La Manana copper mines, New fleet is expected to improve mining productivity and throughput and we land and better grades in the in the main pit in the back half of this year.

As far as the financial results go.

Increased production helped by the all time average quarterly gold process, which I just referred to delivered a 7% increase in operating cash flow and an increase in adjusted net earnings to 19 phase this year.

On the back of this quarterly dividend is maintained.

On a to attain Saint <unk> per share.

It's important that I point out the fact that we are managing this company for the long term.

And we're not we are very diligent to bed, we thought carefully about our dividend policy, we are respecting that policy and not disregarding it we remain the strongest balance sheet in the industry and as we pulled back on the back half of this year, we will build up our cash.

<unk> again materially.

At the beginning of the year, we launched a new safety drive as you all know and we call a journey to zero.

And it went we specifically laid it across the entire group and it certainly started to produce.

Results.

If you look at the lagging indicators, which is not what we're using to manage against.

We have the injury frequency rate are.

Down 38% quarter on quarter, but what's key is for the first time North America region, the whole North American region.

We reported an injury free April and.

So that's a key step in our commitment to getting.

Our operations back where we expect them to operate as far as safety goes and Latam and the Pacific Region also recorded zero lost time injuries for the entire quarter. So those are key more more important than the lagging indicator trained.

We then.

And that theoretically tracked our journey to zero and following a full review we've developed a new fatal risks and associated standards standards.

Shown here along with critical controls of each of the 10 fatal risks and part of our risk management overview. We also reviewed and updated our field level risk assessment tool that is standard throughout the organization now and really the big drivers to get every one of us.

Particularly the leadership completely embracing this journey to zero.

Yeah.

Yeah.

Sustainability is as you all know is central to barrick's strategies and practices and it does what secures a crucially important social license to operate and there were no significant environmental.

Incidents during the quarter and the year to date and our average water use efficiency for quarter, two was 82% and for the half year, 83% and again, beating our 80% target.

Also our greenhouse gas emissions were down 5% quarter on quarter and 12 for 12% against the same period last year.

And as you see in this slide our commitment to biodiversity takes many forms but was exemplified.

Last quarter by the Barrick led and reintroduction of what rod nose to the ground that National Park in the northeastern part of the Democratic Republic of Congo, and Grand as a National Park, we have been supporting since from Randgold days back in 2009, and it's also it's a personal.

Goal of mine to see this happen and it comes with another message and that is you know when we arrived in.

Bali, then mark our gold mines back in 2000 and on the load resistance Army was all over the place and today. The fact that we can put right back in that pop means we've really got on top of the security. So it's a massive.

And sort of.

Symbol of what mining can bring to these conflict zones, and and having just come back from Pakistan.

Absolutely convinced that if we do the record aircraft, we're going to see the same sort of effect, if not better more tangible in that part the part of Baluchistan way Rick you <expletive>.

Is gonna be bolt.

Yeah.

Another key point here and I'm not sure all of you are aware of this but.

Staying with sustainability.

So very pleased to announce that we've achieved full conformance with the recently formulated global industry standard on tailings management and you would have seen an announcement on Friday.

With the disclosure of information on our website as per principal 15 of the standard for our very high and extreme consequence facilities.

And I would just point out that Barrick.

Has a lot has long been a leader in the responsible management of tailings storage facilities and we welcome the additional disclosure, which is part of the new standard.

Over now to the operations, we start as usual with North America, where we continue to build our value Foundation in Nevada Gold mines.

Already far more than the sum of the parts.

That were combined in the merger.

And N G. M is on the cusp of entering a new growth phase as Alan Hope to show you and some of the exploration slots.

The knowledge gained from our better understanding of the ore bodies is generating new targets and discoveries as well as new concepts designed to deliver life of mine extensions and potentially the next wave of tier one assets and one of the world's most prolific.

Gold districts.

These are the Nevada gold mines operating results with production as I referred to in the introduction up 11% quarter on quarter.

And.

It's remains on track to deliver on its 2023 production plans.

The higher production.

Delivered a meaningful drop in all in sustaining costs as you can see from the slide and and we this is a trend we expect to continue into the second half of the year.

Yeah.

Since creating.

The Nevada gold mines.

It's worth noting that we've replaced 16.5 million reserve ounces depleted by mining.

And as you can see how we still have a wealth of opportunities.

With the potential to be big value drivers and are confident that exploration all sustain reserve replacement and deliver an inventory that will secure a 15 year planning horizon and beyond and I'll come back to that rich.

Placement strategy, because as we had in Randgold, we now developing a plan to replace.

Our reserves through the advancement from inventory to resources, and then to reserves and and in Nevada, we starting to see that plan as well.

There's no better place to start on the slide.

At the top right.

This review their net the Collyn trained.

Which is the gift that.

Keeps on giving we continue to insect intersect and this is quite important you'll see at the bottom that AR.

Twenty-three zero-zero, one intersection that we continue these I'll call in top grades.

And and in our quest to expand calling in the greater <unk>.

<unk> complex and we are continue to consolidate.

The the ground around this and we'd talking multi multimillion ounce opportunities and we are starting to see that definition and and we're expecting to be able to share some of the holes that we've drilled now.

But we're still waiting for the verified assets, but the one thing I've always said to many of you is that when you hit World class.

Our bodies you don't have to say in the assays the logs to the S. A lab to work it out.

So we're actually pretty excited about the the this potential at Cortez. The Barrick owned formal discovery is well on its way to tier one status. We shared some of these results with you last quarter. These are big numbers. We every intersection now we're starting to.

To show more more opportunity and in the most recent of these discoveries is the Dorothy brick brachia, which you'll see referenced in this slide but these intersections add significant adds is every time, we drill a hole, that's where we are in the ore body today.

Strong drilling results staying with.

With our Cortez complex from Robinson would show its potential to grow into a multimillion ounce.

Asset and this is it's very important Robertson, it's still going to be permitted we are in the process of permitting it but it's a multimillion odds.

Oxide deposit and that's important for Nevada, because we've got capacity in our oxide mills and and you'll remember that newmont will get it closed down their oxide MAU, even before we did the the the deal and we kept them alive and this is a very key.

Asset and we still are.

Looking to expand this footprint, it's been a very successful exploration project and finally at Turquoise Ridge.

We've now opened.

The.

Our main what we call truck turquoise ridge underground ore body to the north West and the South East.

And as you see here and again significant intersect.

Intersections.

And that really and this is the least developed of all that all the world class ore bodies.

In the node, Nevada operations, and I'll, just pause there for a minute and and just point out that the the.

The the <unk>.

Greater level area and certainly the extension as you see on the slide that's a completely parallel.

We'll clos.

Target, that's running parallel to the goldstrike.

The coal trade, which is the which is what made Colin so famous and we are rarely at at a stage of developing our sub parallel targets along the really key one of the key false which will parallel that debt will class trained.

That's that as I said has made so many mining companies wealthy.

Barrick also in addition to our Nevada joint venture continues to expand its north American footprint.

And drilling is confirming significant discovery potential across the multiple targets in Nevada away from Nevada Gold mines and framework drilling has started on a pull string project as well and.

And ongoing generative work in Grande consolidation is progressing across the western United States again, we've got some developing opportunities, which hopefully will be able to share with you.

In during the next quarter and in Canada.

Mapping and sampling at the pick project near Hemlo has identified some interesting mineralized structures.

The Allergist have also started work on the new stage in life project, and we've signed an agreement to earn up to 75% on the Petrus project, which is just north.

North West along the same trend as melodic so again, we're in the right place.

We're super excited and you know we tried as you know to look at.

But communities to go through M&A, but our geologists are starting to point to some real opportunities to expand our business here in Canada.

Moving then on to Latin America, and Asia Pacific region. The team is doing a great job.

Particularly the exploration team. We've we are busy rationalizing a large historical land portfolio now as well as <unk>.

Particularly along the Andean trend and we also are moving to secure new opportunities we've expanded our footprint in Chile, the Dominican Republic, and Peru, where we've made some exciting early stage progress, particularly in southern Peru at our Austral project.

This region also covers program in Papua New Guinea, and Rick codec in Pakistan, where there have been some very positive developments during the quarter, which I'll take you through.

Yeah.

So starting with PV.

Commissioning as I said in the intro of the expanded plant was impacted by ongoing equipment failures relating to the flotation and mold circuit pumps, and we are working with F. L. Smit.

To address these issues and rectify some design flaws and and I'll just explain we've installed the biggest flotation cells ever.

We'll certainly have a bigger.

The biggest debt F. L. Smith is supplied and we've had some issues with the some of the shafts and and the gearboxes and we've had two rate retro engineer them and and and and they have also rebuilt some new ones and sent them and so we are busy working with him and.

Until we get that settled where we're running all the circuits, but were going to take some time to ramp it up to full production.

We are still expecting.

A much stronger second half than the first half and the expansion project. We are confident we will achieve its full capacity.

At the end of this quarter, maybe early next quarter.

Once completed the plant expansion and mine life extension have been designed to support an annual production of above 800000 ounces two way beyond 2040, and and this really does make PV standout tier one mine and we've got six of them.

And we've got a couple in the making and we are very clear about how we define tier one assets.

And just to remind you when we did the merger PV.

Was it.

If we didn't get a solution on the tailings facility, who is going to close in 'twenty 'twenty. One. So we've now got the permits in place and we're good to go as.

As far as the expansion goes and that's when you try and put a value on that is like a very big discovery. This is a 22 million ounce.

The prospectus Vic.

Sure.

As I mentioned, Argentina, Valla Dara exceeded.

It's planned production, which is particularly commendable considering the very difficult operating environment Argentina's.

Ongoing currency crisis has created strong railing results from Nomura Escondida target pointed point to its potential as a satellite.

Two valid era, we're busy doing that modeling right now and exploration is also focused on those other targets immediately around fair value. There I think the team is now fully motivated having.

<unk> some success with Mara Mora and Escondida.

And again, you you'd call we cut back on Valla Dara.

Delayed some of the capital into end of next year. This is a very dominant NAMIC. You. In addition to the currency cross it's an election year, it's an election year, that's being spread over the whole year and so we know now who are governors in San Juan.

But we still got to go through that rock'n'roll.

Process to get the.

The federal government in place in an elected president.

So as I noted again earlier, we're rationalizing our exploration portfolio in Latin America, and prioritizing our portfolios are getting a resource triangle people, who know me know exactly what it means.

In order and and we continue to.

Secure more ground in that area, there's a quick snapshot of where we are.

Looking and yeah.

We certainly are.

Excited about the prospects and we've got a completely new team has taken a couple of years now to get that team to start really understanding what we want and where to go and we're now starting to get.

Those results.

And then flipping across to Pakistan.

The feasibility study at Rico <expletive>.

Yeah.

Made material progress this last quarter and is still scheduled for completion by the end of next year with 2028.

Targeted for first production of concentrate infrastructure development is underway and the refurbishment, which is a key thing of the air strip has been approved for flats with a weekly charter and are guiding to flat to two sought.

And in line with our commitment as you see in this insert.

Too early benefit sharing with the people of Baluchistan, we've already established two primary schools as part of our community investment as proposed by the newly formed community development committees. So this is something that's in partnership with our communities.

And.

And by the way I personally along with the senior executive back have been to all of those communities.

And it's worth noting you know.

When you look at the Afghan story and you look at this story and Balochi the bullets people a cross.

In Afghanistan, and and in bullet Stern of Pakistan.

And you see the school and you see that the the they're more or less 50, 50 boys and girls.

It's quite an achievement.

And I'll tell you a little bit about baluchistan, particularly around ricky-tick.

There is no economic activity and so when you give people a chance to earn money, it's amazing what happens and.

It's the only place in the world who have seen more schools.

Then kids in.

In fact, all the schools are empty.

And so why because there's such poverty.

The children, who have to work.

At to survive and so as coming in and supporting the children, giving them square meal getting them to school is the only way. They can get educated and this is part of a program that we did very well in in Kibali and that is a GK thing the future.

Operators of demand ahead of demand. So we've done it we started with.

This is a multi generational mines. So we've started with junior school.

We've also looked at vocational training of those young teens, and then we've gone abroad and looked at across the.

The universities for.

But lets people who are.

I have a really finished or about to finish their degrees in particularly.

Particularly in engineering, but.

Engineering some economics.

And and processing and so the first.

Bunch, we've NAS.

The contracted and they will be moved to our operations around the world and they will start working with us with the intention that they will be the leaders of the operation when we turn it on.

In a few years' time.

So and again, that's we commissioned kibali with local.

People. So every day most of our workers go home into the villages around demand and so the community is <unk>.

Our our workers and that's our intention.

In <unk>.

And Rick for Rick Rick Burdick as well.

You would've seen some announcements on progress recently.

At last.

Hearing the age of the long road towards the mines reopening and.

And the key one is we've applied for the.

The special mining lease.

Which is the one that was removed as you'll recall at the end of the last lease period and and two for that to proceeds to close.

We needed to have a number of.

Regulatory procedures first one is what they call a warden scouring that's happened and all the different selected regions and and the we've had a security forum led by the key ministers and the Prime Minister himself and and doing that forum the minister of mines, formerly <unk>.

Open the development for them, which is the critical process, where everyone has a chance to engage and discuss and share what they want and it all ultimately.

Culminate in the it might not culminate in a full mutual agreement across every aspect because they know the negotiating tactics in Papua New Guinea has started a 120% and see where you land.

<unk>.

But it is a serious engagement and and it will during this process the government will get to a point where it all.

<unk> finalized its own review of our applications for the ASML and then we'll get that awarded on the back of that we've started.

The preparation of the mobile fleet.

As we as after all this time, we've had to upgrade some of the tanks tankage in the in the.

In the processing facility, we have a new crusher in order and.

We're getting ready to start up.

And and our expectation is that we should be able to start and get poor our first bar of gold this year.

And every time I say that people say don't do you have any more granularity on that and I say no but in the fullness of time, we will and I. All I can say is that everyone wants. The mine started now so you will see the the updates as we get closer to.

That that day.

Okay.

So with that.

We move across to Africa, and the Middle East and.

And this bond U is.

By far the most consistent performer in our portfolio and it's not only a reliable contributor to the bottom line, but also hosts to a wealth of gold and copper opportunities.

The Lula Conculture complex.

Delivered its usual strong performance.

And and is on track to achieve its 2023 guidance as it continues to invest in greening its power supply grid as well as replenishing its reserves and looking for more and again this has been a spectacular asset.

It would be remiss of me not to point out that Molly is not without its challenges.

And I would add is has never been without these challenges.

We have been operating there for 26 years and in that time Ludo.

We built a new logo Carter and into one of the world's 10 largest gold mining complexes as well as the as the country's largest taxpayer in employer.

Sydney largest employer outside government.

We've had a constructive relationship with successive governments through some very turbulent times and in recent weeks I've personally engaged with key members of the current leadership.

About the proposed new mining code and I'm very optimistic that as in the past, we will find a mutually acceptable way to keep galled shining for Molly.

In West Africa.

There's a lot of opportunities are pointed out it's a very dynamic place right now as you would have read in the newspaper with the latest two and as Jay.

And but stay with Lulu, we've we continue to define wide high grade.

Intersections on the extensions, allowing the big structures that host the multiple world class assets.

Around and within the Lula Guncotton leases, while also cross the border in Senegal, we continue to.

Evaluate the dilemma joint venture in particular, and and we've got the Bob LNG joint venture and we are continuing to expand our footprint in eastern Senegal and in Cordova, we're assessing the funnel Dara satellite deposits and other high priority targets.

The team has been extremely successful in adding to the life of mine of ton God.

Moving across.

To.

The Democratic Republic of Congo, and in commodity and Kibali again, Kibali overcame it's first quarter challenges.

To deliver substantial improvement as you can see here.

In production for quarter, two and it's that has it's a back on it.

This is really set it back on course.

Two two.

To achieve its full year guidance and and we also really focusing on our underground.

Development to build additional.

The flexibility and be able to support the new 10 year mine plan.

And ongoing exploration rarely has highlighted to immediately to the west of the case E D.

Main series of deposits that potential for more of the same and we're quite excited about this.

Recent development.

And in Tanzania, which is a real success story.

Our trigger joint venture with the.

Tanzanian government as a poster child for my thesis that mining can be the force that makes undeveloped countries investable and there's no better example than Tanzania.

And it's great to see BHP, putting its toe in the water in Tanzania on the Nikola project.

After Barrick took control of North Mara and bullion Hulu in 2019, it transform them into operations capable of producing a combined half a million ounces annually.

In other words, a tier one production profile and we have also shown that we can achieve.

And what you can achieve when a mining company and its host country work together.

Two develop itch natural resource endowment and last quarter conversion drilling at North Mara placed all the reserves are.

Depleted from mining and remind the first ore from the again, a pit and additional opportunities for resource conversion bullies got a very long loss nearly in well into the twenty's.

North Mara has just over 10 years, so big focus there and.

It's worth.

Having a look at this slide and that is we have tier three tier one to rains in our central and East African holdings. The Kibali Lithia are very covered.

A new exploration foot print, south Aboolian, Hulu and high priority permits along the good kind of Colorado, which I've just referred to.

And.

And again this good Kona corridor is an exciting opportunity when we win.

Randgold resources, we will always try to get out.

Hands on those extensions and it's taken us a while to secure the permits because they were lapsed they lapsed under the Acacia Tom and so we've now got them and restarting to evaluate them and we're super excited about the opportunity to extend.

And north borrowers life of mine on the back of that.

We also have a very.

Significant.

Intersection beneath the near began a pet as you see here and there and it's really it got everyone's attention, where we're not sure about how it actually fits into the the ore bodies at the moment, but it's a it's a recently confirmed intersection.

Moving across into Zambia.

And in generally our copper operations as I pointed out Lamont in Oman is a wells well set to achieve its guidance for the year. It really is going to have a strong second half and with the implementation of its owner miner strategy and the commissioning of the revel and commissioning of the new fleet.

Where we replaced a contractor which was very expensive.

We've already seen a reduction in in cost says you can see here on the slide.

And.

And Ah and excited about the prospects of Lamar and Ala Moana has the potential based on our preliminary economic assessment.

To be equivalent to our share of their recur DIC investment.

That's how significant it is so.

I'd point out that at the time of the merger no one believed in pneumonia.

It was a high cost producer, making no money.

And it says subsequent transformation into a potential tier one asset in our copper portfolio is another one of barrick's Big success stories, and we are talking about significant reserve conversion on the back of the feasibility study we are busy with and the projected expansion on the back of.

This new Super pit.

As I pointed out there will add significantly to its production and take the mine life to beyond 2016.

And.

So we're on track to complete that.

Our next year and and we've schedule.

Construction, starting in 'twenty, and 'twenty, five and and our forecast at the moment would bring that expansion from Lamar and I head of the Reckitt <expletive>.

Delivery on its first.

Concentrate is we've got some and we'll be detailing this on the back of the final studies on both projects.

In Saudi Arabia.

Job I'll say he'd made maintained its consistent production and kept its cost below the guidance ranges and our early results from our new property boom of demand are exciting and really it's a it's it's it's a start of something I believe that's significant.

And what's more it's been the foundation of us growing our relationship with the Kingdom of Saudi Arabia.

Before I just touch on and then the last one is Chilean zaldivar, which is largely more of the same.

I would just point out that.

Really it's lamont and and and Kibali there are key for the second half delivery.

For EMEA as a whole, but all the <unk> operations are on track on top target too.

To meet the guidance.

And then two.

Two more slides the one that I referred to Rod in my introduction and that is.

If there's one thing.

More than any other that said.

Barrick apart.

And I know, it's not snazzy and it doesn't require M&A and all that other stuff.

It's a it's been our ability to deliver sustained and significant growth in reserves since the merger.

And remember we were all in the same boat often before that in 2019.

And we've.

Replace the 125% of the gold.

That we've mined or the gold equivalent that we monitor including the copper.

Since the time, we started out on a new venture.

And and again, we we will be sharing with the market off strategy of a three year rolling replacement model because we do have some very big assets. So you'll see the inventory build and then you'll get a big kick in the resources in the yogurt the conversions in over three years.

We're very comfortable and slowly we will build it into a shorter term cycle of course, it goes without saying that the contributions we can make to our copper reserves and resources are significant on the back of the work that we are doing both in Pakistan.

And also.

And also la Manana in Zambia.

We will continue our work not only to hunt those.

World Class gold deposits.

But also copper.

In all the big copper to rains.

In the world today apart from Russia.

But otherwise we're we're very knowledgeable about what's going on in the copper.

Big Cup of feels of the world as we are with the goals and Anna and again our view is.

Growth for Barrick going forward is based on asset quality and I think that's really when you look at our portfolio today, we've got six tier one proper tier one assets.

Got a whole Paul.

Five our world class assets.

<unk> is one of them, it's a 500 plus thousand ounce going to 800, it close to a million and some years, we share the economics on just about a 50 50 basis with.

P&G, Inc. So it's a significant share of value for Barrick.

We've we've got of course.

Valla, Daryl which is no small asset.

In partnership with engine right now we're managing this situation politically.

We've got Lamar on are coming on and that's with that if we can prove it which we have no doubt we we will.

Is it definitely a tier one copper asset.

And of course, Rick codec once we get through the start in and convince everyone. This is a real value asset. That's that's right up there with the top five in the world. So.

You know when you look it up our portfolio tongue on is the one that's the least as far as when you look at it but it's a very good cash producer because it's built so well that our sustaining capital is so small and you'll see the mod in the costs relative to its total cash.

Costs all in sustaining costs are not as high as other mines and its just about can we find more and at the end of the day.

To close it will cost us around $30 million, so it's not a big risk in our portfolio.

And.

And so and zelle devise a partnership as you know with with Antofagasta and then the last assets in our portfolio. So we don't have a long tail in airport, we solve the tail.

At every time, we did a transaction.

And the only one that we have to deal with is hemlo and we've got some real plans to do that we're looking at pushing back that pet again with the higher gold price and we've done a lot of work and pick the PEC project just up the road that's important for us So I'm actually there for the weekend with the team looking at.

Strategies as far as Hemlo goes so another differentiator.

And there's a sort of whole of M&A.

Is the fact that we have a clear path to increasing our.

Gold.

Equivalent to ounces by 25%.

Attend.

Towards the end of the trailing 29 and that is a very significant.

And in a stand at a point because as you know many of our peers have been forced into M&A.

Because they just haven't been able to replace.

The ounces that they've mind, and and and and and our Finnish ladies and gentlemen.

With the fact that we certainly celebrate for the first time that on consensus basis. The analysts are showing that Barrick is a has more value than newmont.

The challenges, we're still at a discount to that valuation so.

Our focus now that we've got a.

Our business clear we've got our teams in good shape is is.

Is that we're going to be working really hard to to get us up there where we are certainly come from and that is a good premium to underlying value and we've got some big things to work on of course, there's a big Delta with Rick Burdick Theres, another delta with with.

With Lamont, there's another big Delta with program as we bring that on so.

And again, there's a big Delta in Nevada Gold mines, and as we not only within the whole joint venture, but when you add in the prospects of <unk>.

Four mile. It's a significant asset for us and as I'm sure. It is.

For our partners so with that.

Thank you for listening, we'll be happy to take questions. We do have.

Some of our team members online and and we are going to take the offers and Graham of causes here in a couple of other executives.

And the audience here in Quebec, Canada, so over to you operator to manage I know, we will take questions. Yeah. So we'll manage this process going forward.

Alright, thanks, very much for the presentation, it's Jackie price, mostly from BMO and Mark can you talk a little bit about your plans or Saldovar I know you've mentioned in the MD&A that it's now classified as noncore and do you have plans to divest that at some point.

I think at some point maybe.

Right now you know, we've just applied for the it with.

And if Augusta with the extension of the life of mine and the permitting which we are dealing with at the moment, which which shows a much bigger.

Longer life of mine than we currently have.

And the reason, we say that is that just didnt reporting it's a steady small operation. It's managed by anti <unk>. We have an active role in that management is a joint venture partner as you can imagine we're not very good at standing back.

But that's.

That's the basis on which we've put it.

In that category and.

And again.

You know better than me.

Despite the fact that the copper market is an absolute short supply and you just have to go a little way and then Theres nothing.

There is a softness in the process.

At the end of the day.

Yeah.

We'll we'll manage that strategically.

Can I ask one follow up as well can you talk a little bit about the process from here and what needs to be done.

So really it's their special mining license.

Which.

Which is we are waiting for which will you know we've done all the other regulatory work we've got everything in place.

We need that special mining license, which means that we have all the communities signed off.

And and once we can do that with and I had a very very good.

Townhall with all our key landowners.

When I was last day two weeks ago.

So there's no doubt everyone wants the mine opened and it's a very significant deal because never has have the landowners.

Have the potential to earn so much from.

A goldmine.

Or any mine in Papua New Guinea, So yeah, I think theres lots of drivers are of course, there's the also the.

Obsession with being able to negotiate the terms, which we've already settled but that's the good thing about Papua New Guinea as frustrating as it is is as our full consultation before that special mining license is issued and and we know Barrick.

Plaza and then Barrick had 30 years of no issue because.

They got that process right and we're very mindful that it is alleged to just society and you Gotta do this thing to the book to make sure that we can mine for another 30 years.

Mark you made a couple of comments about the fundamental outlook of the company being very constructive based on the gold price based on the growth outlook and then the valuation of the stock where it is I'm wondering what your thoughts are on using some capital towards the buyback going forward.

Yeah Josh.

Is.

Entertains us Graham and I almost every day.

We have bought back in in the past and.

And we know I think we.

Again, we don't want to risk our balance sheet right now.

We are very well positioned we are have extremely strong balance sheet, we are forecasting a growth in cash and that will trigger.

Our net cash position and as we approach that you know the the one option, which is the preferred option is to buy your stock back.

We absolutely we are completely in agreement with consensus and that is where we're trading below what we should be trading and it makes sense to buy it. So there's no risk in buying our stock back is just how we manage job our balance sheet.

Towards that.

Alright, one more question.

You made a statement about progress being a a world class tier one assets and with.

What should comments about.

Yup analysts' expectations, because you may be remind us.

What you think the potential economics for flash it looked like meaning you know what's the initial capital to get this to tier one status and what the production and cost structure would be thank you.

So the.

It's a low cost producer because its relatively high grade.

It's single refractory also autoclave more crush a more simple process node too well.

The if you look at consensus there.

The valuation is.

Around $6 billion to $7 billion on consensus process.

5% desktop is in discounting.

Graham.

And so.

And it's about a billion dollars of capital over the next.

10 years.

Flatly weight is front end loaded, but again, we've got a bit of work to do on that a lot of it depends on how we treat the way and give them a pet which is not in reserve yet so I'm talking I'm talking about total resource now.

10 years, we've got banked.

And that's important for us because we get to the 50 50 sharing of economics and and our intention is that we will we will create so much value for everyone. No one else would want it.

Government and Barry Kobe Partners Forever, Yeah, that's the that's the intention.

So and.

Theres, a big pushback on the western wall of the main pit that we got to address and that's what we busy with at the moment is made of designing doing that as I say in the in the press release, we are designing that pushback at the moment I think that I can say the underground is bet in better condition than we expected.

So we were happy with that we've had this constant sloughing of the western wall, which has always been a challenge it at par and we need to cut it back and put some put some remedial work into that wall. The traction is that there's quite a lot of all on net pushback. So.

And what we hope is that we'll be able to pay for that pushback and then you've got the web game of pet which is rarely brings.

Whole lot of additional resources into.

And the mine plan and potentially takes it to 20 years, which gives you that big number if you look at it.

And we're using just that's a broad rough rough value a valuation on using consensus process.

The key for Us is.

But in 10 years, we more than get to the 50 347 split economic split and remember we sweep.

All our costs that we've incurred.

To date from the government equity to equalize and once we get there then everyone else benefits. What's important is that the landowners and the province benefit preferentially said says carried equity.

Just to explain grab you want to add to that.

I think you've done a good job there I mean, the key point, Josh really is that.

When you look at our economic interest there and you contrast, it to the equity interests. The economic interest is almost double the equity interest because of the way that the cash flow split works.

If you compare it to what you would get in a normal situation. If you were paying.

Corporate taxes, and a 3% royalty so the combination of that economic splitting off the cash flows combined with what Mark just referred to which is the sweep of the cash that we've already spent means that our economic interest is considerably effectively double the value of what the equity interest would imply.

And just as this goes back to the Tanzanian deal that we made and the point I've been making all along.

Is the probably the mining industries are going to invest in promise the world.

And then they don't make the money because they don't deliver on the plan. So the government gets nothing because all they rely on US Texas. So what we did in Tianjin is we took the economic interest and split it down the middle.

We true it up every year, that's a bit complicated, but we do.

So they got them and get the tax.

Mount but if we do not pay tax they still get 50%.

So it's a much fair way of doing it and and again, Papua New Guinea Hasnt B a polo is a special example in and Ironically it paid.

The the foreign currency crisis in Papua New Guinea is directly because we're not expecting.

Importing golf from program, because it's the biggest producer and the biggest.

The most profitable company.

Company in Papua New Guinea.

So.

So that's the same thesis is that the prime Minister wanted 51%, which I was very happy to give I mean after 30 years. He wanted a different deal. He wanted to make sure that he could get all his legal taxes and he wanted to participate in the equity.

If we deliver on what we planned and if we did and he wanted it still half of the production. So that's what we've agreed to do and and it's a it's a great way of doing business I believe and and one thing the only.

Risk is you have to be absolutely convinced you can deliver on your mind and the models that you shared.

And we've done a very similar model in and Rick Burdick, as well slightly more skewed that Rick Burdick is much bigger asset, but and also the government are taking a lot of risk in themselves.

Through this state owned enterprises, and we're gearing it with equity.

With a global funding package with it with their true sorry, we are gearing it was that sort of hit that equity.

With the global funding package.

Hey, Mark Lawson Winder from Bank of America. Thank you for the presentation and nice to see that today and the team I wanted to touch on reserve replacement that you spoke to the importance of reserve replacement to the value of Barrick what is the outlook for this year and which assets do you see driving that outlook.

So Africa will replace.

All of it.

Gold and copper that it's Marty.

The one that won't will be.

<unk>.

Latam, but its got to bring a whole lot to earn with Povera and.

And Rick Burdick that sits in that region.

And we've got this new.

Series of projects and around a valid era, and we've got some super exciting projects South Southern Peru.

Peru in particular and other parts of of the.

South America, which we'll share with you in the next quarter or two.

Nevada Gold mines will all add a bot between 50 and 60% of it.

Of its current it's in this year's production, but then it has a big year next year and the following year.

And so that's why what we've shared is.

There is on a three year Rolling average, we will continue to replace ounces and we will get Nevada, we just about there with Nevada lack we have in Africa and again Lawson. So much. So that you know we were engaged in conversation because.

In Randgold, we used to some.

Some of our incentives are based on.

Reserve replacement.

At least reserve resource replacement in and I believe that's a very good metric.

In any mining company to renew merit.

Management on so that's how significant we believe in and are in and the importance of organic growth because makes particularly when you look at because we've got really big assets.

And we've now.

Close to have completed the recapitalization, because the barrick side of our assets will run down.

And both sides of Nevada Goldmine were run down.

Barrick side was high graded the Newmont side was just run down and we've recapitalized that we've now got a resource base on the top of that and so if you add to it your returns are significant they become infinite.

Because you're adding ounces on a capital base and that's the game near that's the game about big mining assets is if you've got big ore bodies and you've both demand properly.

It produces along.

The copper miners are good at that.

Yeah, that's what makes them so.

So valuable.

I wanted to follow up excuse me on a comment you made about the value of barrick's assets, but then the the multiple discount in the market and.

You make a case here for why the assets are strong weather as it should be strong going forward with the reserve growth.

What is the market missing or has market missed over the last few years in your view.

Led to that discount.

What I would start with the fact that perhaps it starts with the analysts.

And and the management and that we Havent had that conversation and so it's pleasing to see that valuation coming through on a blended conscientious basis. So that's a good thing and we are very mindful and I'll say this rod in 2019, we had a job to do.

And you don't build.

A great Bonnie companies easily today, particularly not gold companies. They are tough things to bolt on bolt one myself and now this is the second.

And so you know and and again, we are mindful that we have to be able to I mean, we've always ive always been that sort of personnel actis support.

I'd like to have that argument is justle.

A firm better.

I'll have to do it on the back of something that's tangible and I think we really are there today.

And the first step is you know, it's very helpful and the analysts.

Group are recognizing value and it's even more exciting when there is still headroom, which I've just pointed to and and by far if you look at our performance what we say what we do how we manage our balance sheet, what we've promised the market we've been consistent.

We always are so I don't think there's any doubt in the minds of anyone of course.

Some people are a little nervous about where we've gone there were the same when we went into the D. R. C. You know, but today when you look at the portfolio of assets.

And you've I'm sure Lawson you've followed.

United States mining law, and the debate and Rosemont and all that all workers hard with the team in the U S. As I do in Pakistan and West Africa.

It's Ed and gone are the days, where you can run mining companies from a.

Yes, 16 floor.

Office block in this.

The developed world you have to be out there and and again getting back to how we manage our reserve resource replacement in that as we move that ownership up to demand we've changed the management to be real business people, who lose leader, our minds and they own those assets they've got quality.

She is scientists protesting engineers, it's not we don't remote control of our business.

From a central corporate office, we do hold them accountable and we always they always say to the team you know if you if you go off piste.

You'll start seeing us if you really get off piste, you'll see us all the time until we get you back on track and that's the way we run back.

Thank you.

Like I said operator can remove this.

Okay.

Sure So maybe to follow up sorry, Brian Macarthur Raymond James I mean, probably one of your hidden values that you're starting to highlight is the super pad I mean this thing could be.

You wanted to own one of the better copper mines out there in the world place. She never Gould credit does it make sense to be have all the copper and barrick going forward given how big a good a copper company you're going to have.

Second thing.

Without you probably can't give me everything on the PFS, but true to 2060.

Is that a pretty stable production profile at the Super pit. So again, it's basically duration forever, though big low grade pet pet and what happened is the chimney pet it got segregated because people yeah Barrick was in a position to try to make money. So it dive down and then chase the grade and.

It's a challenge to chase grade and low grade who blended.

Date of entry hosted copper deposit so.

And what we've done is just go back to geology, and and there are a couple of satellite pits that odd genuinely higher grade and lower strip ratio and the exciting thing about it.

Tomorrow is that.

We run the risk of doing a whole pushback for the super pit without going negative cash flow.

Because we have these satellite pits that can so we mine the same strip ratio. If it you know on a copper waste basis, and so that really.

And that's B, that's our team you know that's what they but once we got the cost down so we got the cost down.

Right in the beginning we understood got to know.

There's ore bodies and in that and then we looked at the other satellites again, a bit like West Africa. There were none in the form of anomalies, but no one is ever stuck a hall in them.

So that's what we've been doing.

And we're far down the road on that process. So we're confident enough that we've got enough copper in those satellite pit said will support right now we are mining and we get a hit some higher grade zones in La Montana pit chimie pit now.

And at the same time we've.

Replace the.

Contract miner with a new fleet of <unk>.

<unk> Kamath.

<unk> 200 tonne trucks, and we've dropped the costs Bob $2 a ton.

And and that has really changed here and you can see it in the numbers already.

And this quarter this last quarter and so that so we'll manage that pet to a point, where we've got it open on strike and then that big pushback to create the Super pit, we'll use the satellite pits to do that we are we are right in the middle of permitting.

The new tailings facility.

It's largely a negotiation with.

The travel.

Travel chief them of the region, which we've had a long standing relationship with them as far as the therapies go we've got support on that.

So if I looked at the slide there 2029, I mean, you've got travel side in there and you've got Davita are in there, but you don't have Rick Kodak to Reits that youre going to have like.

Yeah, we got to have a five year thing at that site and we are actively hunting in the main copper belt. You know we are in the all the copper belt of the United States and let me tell you there's some significant.

Opportunities still within the U S. As I showed on that slide broadly.

And and so we're and again, we believe that if you. If you if you believe in the numbers, which I've always worked on.

The U S is going to have to change the way it manages mining and and we have taken that bet.

To get out there ahead of the.

And again, we're the biggest miners in.

The United States already.

And where we're probably the biggest explorer sorry stepped out of the box.

We probably.

Yes.

Okay.

We are probably the biggest.

Explorer right now in the U S as well.

Thank you.

Sure.

Anyone else.

Okay.

Later, we pass back to you for any questions from the Collins.

Certainly we will now begin.

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

Draw your question. Please press star two.

The first question comes from Cleve Rickard with UBS.

Please go ahead.

Alright, Thanks for taking my question. Good day, everybody can you hear me, okay. They are perfectly safe.

Excellent. Thanks, Mark we've got a little bit of technical difficulties on the line. So.

I apologize if the question is redundant, but I think in the prepared materials, you've called out Cortez.

And turquoise ridge as.

Some of the assets, where you know there was there was some maintenance there was for investment done in the first half and then you expect that increased production run rate in the second half.

I asked a similar question last quarter do you expect that second half run rate to continue into 2020 for like you know have you done the bulk of the kind of bigger work that you need to do with those mines in order to sustain production at that second half run rate, yeah, absolutely and look.

Let me just take one at a time, so the Cortez maintenance.

Is rarely.

Development and the main the it's not really Axel.

Like processing maintenance Turquoise ridge was a premature a hotspot on one of the order place and we brought it forward. It was gonna be in quarter three normal planned maintenance again, we brought it forward we changed a lot we used the opportunity to change all of Gaylord palms and tidy it up we've got quite a bit of work to do.

To get turquoise ridge to where we want it to be.

The the roaster maintenance was a big maintenance schedule maintenance on the goldstrike roaster.

More importantly, it was the shutdown on the gold quarry Roaster and also we use that shutdown to tie in the X on the expansion project. So we got one more shutdown to do next year I think it's second quarter schedule for.

And we will finish the expansion.

The.

Gold quarry roaster, so not only do we maintain the run rate we lift our throughput capacity in the gold quarry roaster by between 15, and 20% and so we bring down the costs and and so we add production capacity because right now in Nevada Gold mines is.

And on double refractory oil processing capacity.

Yeah, we and I know, we've spent a lot of time unplanned maintenance to the point that a lot of the planned maintenance was planned because it was neglected.

And and so we are getting back to that to a proper planned maintenance, which is scheduled maintenance, which which is a normal course of business, which is baked into our.

Our forecast anyway, so but to answer your question in simple words, yes, youll see their throughput maintained at a higher rate largely because we add more capacity next year.

Right right, that's very clear and then and then one just quick follow up.

The gold rush record of decision is.

Continues to come up in three of our conversations and see.

You're expecting it now we think in Q4.

But there was also a little bit of discussion around certain modifications to the.

Dale.

Wondering if that record of decision is restricting development there at all or if these small modifications are allowing sort of timely development to continue.

So on the development side, we are continuing it does.

Start impeding production, because we need to get.

Ventilation up ahead of where we are and so if it carries on much further.

It'll it'll impact production, we've guided that we are looking at the specific impacts at.

At this stage you know this is all about Rosemont and department of interior and we've been engaged with them all the time and and again. This this issue about permitting.

And mineralized claims and the fact of the matter two things Goldress doesn't need a tailings dam it doesn't it's mineralized everywhere.

Underneath and where we are working it's got a very small footprint because we using already permitted infrastructure. So it doesn't.

Isn't fettered, even if you wanted to you've called put it into a <unk>.

Sort of Rosemont argument.

And and it's taken a little while for us to get BLA M.

The state and particularly the federal.

Part of it.

Two two carats.

So they have cleared it now so that's why we are pointing to a specific to unfair it but it's a little bit longer.

Program.

Yeah, we are talking all the time and we are working towards it.

We have got permission to extend.

The development under the.

The exploration permit.

In.

And gold rush.

We can run into next year and still get a.

The flexibility and in place, but we need it as soon as you start having to put the raise bore was up to get the ventilation cleared to be able to.

Ramp up the <unk>.

All production, so that's really where we are and and every indication is now that it's been cleared.

To finalize the AI as the first step and then that.

It goes to the once that's finalized.

The record of decision followed shortly so that's why we've got and we make these forecast in conversation with our local B L. M T.

Alright, very good thank you.

The next question comes from Alan Spence.

Key parabolic theme. Please go ahead.

Hey, good morning, guys and thanks for the opportunity.

I've got two and I'll just take them one at a time first one on turquoise ridge.

Unplanned maintenance events.

Can you just expand on what that was and if that's carried into the third quarter.

Yeah, So we had a.

Fall of ground in.

Part of the development in Turquoise Ridge weight way again as part of our design and changing the design, which we had to step back in and deal with we had a further shutdown on the shaft on some of the safety.

Arrangements in the shop that we needed to fix and we did that.

The main <unk> main impact was really the.

The autoclave hotspot, which we had to take the autoclave down and fix it we were scheduled to do that as I said in quarter three we brought it forward so.

On balance across the the year doesn't impact on our production.

That's really the the.

Most important of the unplanned maintenance it was planned but not dead.

Okay understood and then one probably for Graeme could you talk a little bit of cost expectations into the second half how you're seeing the development of <unk>.

Labor.

Polls.

Yeah.

Take care of any Harris.

Okay.

Yeah.

So you wanted to know about inflation in our outlook on that.

Yes to the second half please.

So I'll I'll answer Graham's got a technical challenge here.

So we certainly see costs flattening off.

Some sort.

Sort of softening a little but we we forecast seeing a sticky sort of inflation where around where it is today we have some.

Higher costs, which will which are still Ukraine related.

Ammonia men cyanide and things like that.

The Big driver is in the second half is increased production will bring down our cost as I pointed out in our guidance.

And.

And you know we.

We do believe that the costs will come down, but not all the way down in the short term.

But there's as you and I will tell you from years of experience here.

Hit your numbers on the production.

Always look better.

We certainly not facing inflationary costs right now we've got a couple but we've got some plans like.

We're much more able to manage the cost and logistics in Ami.

The U S has got restrictions on imports and.

And are the tariffs and so on and so.

We manage that differently, but.

Yeah, I think I don't know Graham now that you've got the Mark.

I think you've got kind of a day Mark I mean.

The costs are expected to come down in the second half as the production ramps up and you know that's.

That's how we that's how we get down there.

The point just to reiterate is that our cost guidance is obviously based on a gold price assumption in 2023, when we were using $60 50.

Pad to the base case assumption, so I think it's important to take into consideration as well.

Okay.

Alright, Thanks, guys. The audio managed to come back at the end I missed most of that but I'll I'll read the transcript for your whole description. Thanks.

Okay, sorry about that.

Our next question comes from <unk> with high Tower International Securities.

Go ahead.

Hi, Mark.

Yeah.

Internationally.

I have two small questions.

Hi.

All of our project.

Uh huh.

Yeah.

Sure.

They can buy a bank.

In mining.

So jointly with Tianjin mining.

So we split it 60 40.

So there was some.

It was a negotiated settlement that was quite a tough thing to sort of assigned.

You know we work very closely with Amgen.

Chairman Chairman myself sat down and worked through.

And allocated some to the Barrick path because this settlement included all way to the new program.

Startup so we didnt leave any.

Residual tax assessment Fahad, we cleared the whole thing and so there was some tax that was future based.

Some tax that was specific to the assessment, which was done just before they close the mine and then some related to the Pos before Xinjian was.

Part of that project. So we worked through that and basically Sheffield as per the answers on a 60 40 by so we shared the tax.

Got it thank you.

My question.

I'll now talk about our future.

Bianca and current.

Net income for a mining company.

Manny.

Are you finding great.

Oh Wow.

Uh huh.

Okay.

Thank you.

So.

The one thing that's.

That's a very important point to make and that is a lot of the copper produced today is from old bonds, which started out as a new months.

And decades ago lock 50 years ago and.

And so that is a challenge and and of course, if you're talking Chile water has become a big issue in Chile, and the copper mining.

On the assets that we've got.

We are in a better league because of grades generally Rick.

Rick Burdick comes with gold, which makes it.

More attractive.

And Blaine the the risk of it.

And Ed on the on the water aspect on record and that's one of the critical.

Deliverables on our feasibility study and we're very focused on that as I said, we're going to be doing the first real in depth of water study for that whole part of.

Pakistan stroke Baluchistan.

The work that we've already done we're comfortable that certainly for the first 10 years.

Yes. It is.

We can draw water.

Without impacting those aquifers and Theres a lot more that we've.

Sort of certainly part can point to at this stage, but it needs a lot of work ultimately the they are further options.

As that.

Area that whole T theater.

Metalliferous pulse gets developed this is gonna be.

I, a region, where infrastructure and particularly desalination is going to have to be part of the big AD developments going forward.

I got it thank you.

Contrary, China. Thank you very much.

Our next question comes from Anita Soni with CIBC World markets.

Ahead.

Hi, good afternoon Mark.

Taking my question.

One last thing I think about that.

And my apologies for the background 19th.

Yeah.

When you visit the assets three months ago, and it definitely impressive asset, but you were just talking about some issues that you were having with many outbound Schmidt our pieces of equipment can you talk about how you see that evolving in Q3.

Anything would be ramped up in Q4, but can you talk about how it going this quarter and what we should be expecting in terms of throughput for next quarter. So.

And as you would imagine everyone in PV, John Steele, all our engineers from other parts of the world.

We are commissioning experts.

F L Smith.

The subject matter experts and this is a new piece of equipment.

And we've had challenges with.

The the.

Shaft send and the.

The gearboxes.

We have.

Replaced them already we.

We are reengineering some of the design issues up as we speak.

And manufacturing some additional.

Pieces of equipment. So we got back up so we're working on it.

<unk>.

For me I.

Don't you have a feel right now because.

Are these sort of start ups.

Can happen in a.

Flash, while they can you can work the math.

Over a couple of weeks.

But we are waiting for a final.

Plan actual schedule of how are we going to get them back to so we've got and we're able to engineer and replace parts in and an engineer little pieces and that will get them running but we need to get this thing to full capacity.

And in it it would be remiss of me to not point out that this is a big as it is to get a run for 20 plus years.

You know, we we are dealing with it.

Certainly when I sit with the team and I've just come from there.

We still got to have a substantially better second half than first half at PV and that's.

That end and as of today, we we are still planning to be within the guidance.

Okay Alright. Thank you you have to kind of question.

Thank you Anita.

The next question comes from Tanya you could connect with Scotiabank.

Please go ahead.

Yes.

Thank you for taking my questions I apologize.

Okay.

Technical issues.

Hey.

Just wanted to circle back to par if I can.

Just want to confirm that Mark what you said was that.

Yes.

Cash on mining license that on the critical path for us to start.

And I just wanted to confirm that you said that local communities.

Kind of it goes to comment correct. So we are waiting for the special mining lease which is the same thing effectively.

But that's what it's termed.

And the landowners agreement as you know, we disclose that way back when there was this conflict between us and government the landowners.

There are aligned with option.

Reinforcing the importance of Paul around getting it back online. So that's so the equity split is.

A 10% to land owners of which two and a half go to what we call a L. M P landowners and seven and a half to the.

CML landowners the main owners of the land on which the mine operates and 5% goes to.

The anger province.

And that's the split of course.

Conversation in the development for them.

Evolves around that and also other contracts that are.

That are always in place people like the people living down the river.

People on on other concessions that.

Dollar amount concessions and other various transitions that we work with and all of that is part of that and of course.

The government is also committed to investing back into program the Pogo Valley.

Schooling, and and we have been talking about some tax offsets even because you know it.

It is a real realization of how significant.

Poker is to the economy of.

Of the Papua New Guinea so.

The answer is yes, and no because this is a process of course theres always a fall back because we have agreements, but this is a process of consulta issue, which is prescribed by the law. The first one is the water and caring and that is really defined for the government through the wardens and the M O.

Array.

Two mineral resource authority or the mining department to sit and listen to all interested in affected parties and how that there.

Issues proposals whatever and record them.

And.

And that has an obligation and then following that the development Forum, which is more of an proper engagement and it doesn't have to be completed.

Straight away, but once it's the process is far enough advanced the government will make the decision at the appointed time on issuing the ASML.

Okay.

And when we get them now.

Can we scale it.

Mark.

In fact, the case mine to get to full capacity, yeah, I think that once we move onto the site six months is a good target here. We are of course produced gold before that but getting it ramped up that's that's that's a good assumption.

And should I start.

This mine to produce on a 100% basis.

800000 ounces.

Total cash costs at 900.

Gaming console.

Is that kind of a reasonable number that's a fair guess at this stage.

We'll update it as we go I think January once we're up and running we'll share some updated numbers with you, but it will get once we get the startup plan, which is what we're working on we will guide you.

Yeah, we've got those gardens out and they will stick until we change them and the ramp up as you know it goes ahead of that so are you working on 500.

As a first crack is reasonable on a 100% but of course it goes a lot higher than that within a couple of years.

Okay, Alright, I'll wait for that.

Finally, I would that be coming at you know once you get that.

Be reasonable to assume Humphrey.

Yeah.

Yeah, we'll give you two jewelry when we announced that we exited.

Probably starting up the mine.

I've got a Graham Miao trying to.

I think Tony I think all things going according to plan in February when we do our normal.

And your guidance is probably the best guess.

Okay.

Graham.

Yes, Amit.

Placement because again of technical issues.

To understand as a company overall gig I correctly understand that this year when you look likely seen more increases to resources.

And not necessarily reserves.

That is correct yes.

And that reserve replacement you can see appearing in Africa.

Gold and copper.

Not in Latam.

Yeah, that's correct and that you'll see that rolling up next year.

Okay, Alright, so thats helpful. And then just lastly, just on the.

Overall.

For the company with that has been an increase in gold and copper.

Yes, yes, its mined copper ingalls.

You're talking about the last second to last slide.

Yeah Yeah.

Okay.

Perfect. Thank you Tamara perfect. Thank you.

Our final question comes from Martin <unk>.

In theory it does.

Research.

Go ahead.

Thank you.

I have two questions.

The first one on lunar one.

Can you maintain.

Talking about much higher grade in second half compared to Q2.

Can you give us some idea.

What do you mean in terms of higher grade in the second half.

The higher grade in Oman, as low grade anywhere else.

So it's not a lot, but it's more consistent and.

And slightly higher grade.

I mean I can actually.

Compared to Q2 or are we talking 10% to 15%.

Okay.

So again, 10% there's a good number.

Okay, that's fair.

In Q Kibali Yep.

Good recovery.

Can you maintain or improve production in second half compared to Q2, we've got a good second half for Kibali. It's good overall.

You know the second half.

It's really <unk>.

Listed with quarter two so that's the kind of run rate that we expect for the rest of the year.

Okay fair enough.

Thank you very much.

There are no more questions from the conference call.

Thank you very much thanks, ladies and gentlemen, those of you here.

Think we're and would like to invite you for.

Our snack and a glass of wine, we thought wed break the tradition here.

Numeric so join us.

Yeah.

Thank you Ron.

Today's event should you have additional questions.

Okay.

Okay.

Thanks, and have a pleasant day.

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