Q4 2023 Barrick Gold Corp Earnings Call

February 14, 2024

Please press Star then one on your telephone keypad will also be taking questions from those in the room.

As a reminder, this event is being recorded.

Play who will be available on Barrick's website. Later today February 14th 2024, I would now like to turn the call over to Mark Bristow President and CEO of Barrick. Please go ahead Sir.

Thank you very much and very good morning, and good afternoon to everyone.

Today.

I wanted to start.

This presentation with some reflection.

Back to the time of the merger.

Where we committed to a clear strategy.

For building, the new Barrick into the world's most valued mining company.

And move on now to today five years, it's clear that we've come a long way and realizing that objective as I'll show you through my presentation.

I'll focus on tier one assets has delivered a peerless gold portfolio with meaningful potential for further growth matched only by the significant ramp up of our copper business over the next four years.

Maintaining barracks unique record for replenishing our asset base, we have placed more than we have replaced more than 140% of our gold reserves.

Since 2019 and more importantly at the same grade which is critical.

In Tanzania, or tweak joint Venture's success has demonstrated the power of our partnership approach and we are aiming to replicate that at many of our other operations.

<unk> Paul.

And Rick a deck.

[music].

Our belief.

That combining the best assets with.

With the best people will we will yield the best returns has produced an industry leading production profile.

Backed by a strong balance sheet.

And sustainable dividend and capital return policy.

And every heading.

Asset quality.

Operational excellence.

Peerless people.

And sustainable profitability we.

We have not kicked virtually every box on a report card.

As this presentation includes some forward looking information.

I'll start with the usual cautionary statement, which if you are so inclined.

You can read it at your leisure.

On the website.

Protecting the health and safety of our people.

His bearish top priority and last year, we made tangible progress in what we call our journey to zero posting the best results since the merger.

As you can see here.

Both lagging indicators the lost time injury frequency rate and the total recordable injury rate continued to come down.

There is.

Have a lot more work to do on eliminating fatalities clearly a subject.

It is no room for complacency.

Quarter of 2023.

Our focus remains fixed.

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 they'll also be taking questions from those in the room. As a reminder, this event is being recorded.

On the zero goal and the enormous progress made by our Latin America, and Asia Pacific region shows as this as well.

Within our global reach.

And 'twenty through 'twenty, three we were able to progress our sustainability strategy significantly.

A replay will be available on barrick's website. Later today February 14th 2024, I would now like to turn the.

Commitment to real sustainability.

Call over to Mark Bristow, President and CEO with Barrick.

<unk> has long been the bedrock of our business and it's based on a holistic approach approach, which integrates all aspects.

Please go ahead, sir thank.

Thank you very much and a very good morning, and good afternoon to everyone.

Of our environmental and community responsibilities.

Today.

I wanted to start.

This presentation with some reflections back to the time of the merger.

As distinct.

From the Siloed ESG model.

The numbers you can see here shows the tangible benefits of this strategy.

Well, we committed to a clear strategy.

For building, the new Barrick into the world's most valued mining company.

Is delivery.

As you all know.

And move on now to today five years old and it's clear that we've come a long way and realizing that objective as I'll show you through my presentation.

We had a slow start to the year.

With the operational issues at MGM in Kibali.

And then towards the end of the year the commissioning setbacks.

I'll focus on tier one.

With Pablo via hose plant expansion impacting on production.

As it says delivered a peerless gold portfolio with meaningful potential for further growth.

Notwithstanding that we delivered a steady quarter on quarter improvement through the year and despite another good fourth quarter, we fell fractionally short of our gold guidance, while copper natus guidance.

Only by the significant ramp up of our copper business over the next four years.

Maintaining barrick's unique record for replenishing our asset base.

We have placed more than we have replaced more than 140% until about gold reserves since 2019 and more importantly at the same great which is critical.

Highlights of the year, where our sustained in an industry, leading gold and copper reserve replacement.

Which is one of the key differentiators between Barrick and its peers.

In Tanzania, a tweak our joint Venture's success has demonstrated the power of our partnership approach and we are aiming to replicate that at many of our other operations, including Polgar and Rico <expletive>.

Another consistent performance from the EMEA region.

And our strong financial performance admittedly with the wind of our record gold price at our backs.

Our strong balance sheet reflected by our investment grade rating also stands us in good stead as we navigate these uncertain times.

Our belief.

That combining the best assets.

With the best people will we will yield the best returns has produced an industry leading production profile.

The results for the fourth quarter reflect the improved performances from Cortez.

Backed by a strong balance sheet.

And sustainable dividend and capital return policy.

Phoenix, and Pueblo Viejo, where we have now resolved the equipment issues in the flotation circuit.

And every heading.

Asset quality.

Operational excellence.

Peerless people.

Costs were slightly higher than the previous court quarter, mainly due to lower grade stockpile feed process to add new logos Carter as a result of a pit wall failure at the Goldman Carter open pit.

And sustainable profitability we.

We have not kicked virtually.

Every box on a report card.

Yeah.

This presentation includes some forward looking information.

Lower grades processed at Carlin.

I'll start with the usual cautionary statement, which if you're so inclined you can read it at your leisure.

Extra commissioning costs and the impact of the tropical storm.

When Ted Pueblo Viejo, rather than an and this is rather than.

On the website.

Yeah.

What people jumped to a structural shift.

Protecting the health and safety of our people.

In inflation.

There's various top priority and last year, we made tangible progress in what we call our journey to zero posting the best results since the merger.

I'll touch on all of these as I go through the presentation.

The financial numbers speak for themselves, but it's worth pointing out that year on year operating cash flow increased by 7% and free cash flow grew by 50% first.

As you can see here.

It's lagging indicators the lost time injury frequency rate and the total recordable injury rate continued to come down.

Furthermore, adjusted net earnings per share increased by 12% and the core to the quarterly dividend was maintained at 10 cents per share in line with our policy.

There is.

However, a lot more work to do on eliminating fatalities clearly a subject.

Where there is no room for complacency.

We as usual, we'll start with the operational review and North America.

Our focus remains fixed.

Which is still a work in progress.

On the zero goal and the enormous progress made by our Latin America and Asia Pacific region shows that this is well within our global reach.

But on a much firmer foundation and under new leadership that is aligned with barrick's DNA.

At MGM, the long awaited record of decision enabled Cortez to advance the gold Rush development late in the fourth quarter.

And 'twenty through 'twenty, three we were able to progress our sustainability strategy significantly.

Commitment to real sustainability.

In 2024.

<unk> has long been the bedrock of our business and it's based on a holistic approach approach, which integrates all aspects.

We are ramping up drilling and the evaluation.

Barrick's, 100% owned formal project.

With a few viewed to commencing a pre feasibility study by the end of the year and I'll cover that in more detail a little later.

Oh about environmental and community responsibilities.

As distinct.

From the Siloed ESG muddle.

And in line with Barrick's continued group wide investment and accessing skills that are in short supply in the industry. In GM has established three early learning centers to increase.

The numbers you can see here.

Show the tangible benefits this strategy.

Is delivering.

Chile care facilities in the region and we've also progressed our.

As you all know.

We had a slow start to the.

Martin.

With the operational issues at N G M in Kibali.

Our education system, where our trial mine.

And then towards the end of the year the commissioning setbacks.

Training centers as we call them in South Africa.

With Pablo warehouse plant expansion impacting on production.

To make sure that everyone that joins us goes through a proper induction and make sure that we.

Notwithstanding that we delivered a steady quarter on quarter improvement through the and despite another good fourth quarter, we fell fractionally short all of our gold guidance, while copper met its guidance.

They really understand and our skilled enough to do the job and it's an integral part of our focus on safety.

That is a big issue you know everyone talks about all sorts of safety procedures.

Highlights of the year, where our sustained in an industry, leading gold and copper reserve replacement.

We've landed on the on the on the view that.

Operational excellence is really the foundation of a safe environment when people know what to do and they do it properly.

Which is one of the key differentiators between Barrick and its peers.

Another consistent performance from the <unk> region.

As elsewhere in the group.

The transition to renewable energy gathered pace with the commissioning of the substation and the first 100 megawatt solar farm in Nevada, with the second hundred Mega watts to be switched on.

And our strong financial performance admittedly with the wind other record gold price at our backs.

Our strong balance sheet reflected by our investment grade rating also stands us in good stead as we navigate these uncertain times.

Later this year.

Yeah.

This is a closer look.

At MGM and the details are in the MD&A for those who want to get into the details.

The results for the fourth quarter reflect the improved performances from Cortez Phoenix and Pablo via her where we have now resolved the equipment issues in the flotation circuit.

Were the highlights include a near record fourth quarter production from Cortez and the acceleration of the gold Rush development, which is forecast to produce 100000 ounces in 'twenty 130000 ounces in 2024 growing to around 400000 ounces by 2028.

Costs were slightly higher than the previous quarters quarter, mainly due to lower grade stockpile feed processed at Blue Lagoon Kauto as a result of a pit wall failure at the Goldman caught a open pit.

All in all we see an exciting future for Cortez.

Lower grades processed at Carlin extra.

And then looking forward to 'twenty 'twenty four we are also stepping up our planned underground development and grade control drilling efforts across.

Extra commissioning costs and the impact of the tropical storm.

Then Ted Pablo via her rather than and this is rather than <unk>.

Both open pit and underground as part of our production delivery assurance program at a tier one operations and that does impact on the <unk>.

What people jumped to a structural shift in inflation.

I'll touch on all of these as I go through the presentation.

The cost this year.

The financial numbers speak for themselves, but it's worth pointing out that year on year operating cash flow increased by 7% and free cash flow grew by 50%.

Another noteworthy improvement during the year was the step up in performance at Turquoise Ridge. Following the commissioning of its third shaft and improved performance at this age order clave, we've still got some work to do on the stage order closed, but we know very clear about what we have to do.

Furthermore, adjusted net earnings per share increased by 12% and the car T. D quarterly dividend was maintained at 10 cents per share in line with our policy.

To really return that that processing facility back to where we expected to operate as far as availability is go.

We as usual, we'll start with the operational review and North America.

Turquoise ridge because of that is beginning to live up to.

Which is still a work in progress, but on a much firmer foundation and under new leadership that is aligned with barrick's DNA.

Two its full tier one potential.

Costs for the EM complex were a little higher quarter on quarter, owing to the mix of production, including higher cost stockpile material as well as some additional maintenance costs.

At N G M. The long awaited record of decision enabled Cortez to advance the gold Rush development late in the fourth quarter.

I always refer.

Two our Nevada gold mines complex as our value Foundation.

In 2024.

We are ramping up drilling and the evaluation.

And here you can see why.

Barrick's, 100% owned form a project.

Far from being a mature destination.

With a few viewed to commencing a pre feasibility study by the end of the year and I'll cover that in more detail a little later.

It is a world class.

Goldfield, which were successfully export exploring for both Greenfields and brownfields growth opportunities.

And in line with Barrick's continued group wide investment in accessing skills that are in short supply in the industry.

We now have a five year outlook on.

Reserve replacement and that's quite important we've both debt.

G. M has established three early learning centers to increase childcare facilities in the region and we've also progressed our.

Foundation and now we can like we do in EMEA.

And in Latam, we can we can point to what we have to do to continue to convert over the next five years.

Martin M.

And the other point is that this year, we're gonna be spending quite a bit more of a budget same budget, but a little bit more not a little bit a substantial amount more on greenfields targets, because we built the models and we're excited about the fact that in our view this.

Our education system, where our trial mine.

Training centers as we call them in South Africa.

Too to make sure that everyone that joins us goes through a proper induction and make sure that we do.

They really understand at all skilled enough to do the job and it's an integral part of our focus on safety.

Is not a mature.

Goldfield Theres lots of <unk>.

Outside in it.

And one of those is the recent Robinson discovery.

Because that is a big issue you know everyone talks about all sorts of safety procedures, but we've landed on the on the on the view that operational excellence is really the foundation of a safe environment when people know what to do and they do it properly.

With step out drilling is confirming.

Outside potential and the importance of Robertson as it comes with the additional advantage of mostly non refractory oxide ore.

And then of course call it collyn the greater level.

As elsewhere in the group the.

The transition to renewable energy gathered pace with the commissioning of the substation and the first hundred megawatt solar farm in Nevada, with the second hundred megawatts to be switched on.

It's multiple opportunities, which we expect to continue to support.

I'll reserve replacement.

As I indicated earlier miscarriage focus little bit on four mile and and share. The fact that we've decided to expand the drilling and other valuation work streams at this 100 per se in Barrick owned project.

Later this year.

This is a closer look.

At MGM and the details are in the MD&A for those who want to get into the details.

With a view to starting a pre feasibility study.

Were the highlights include a near record fourth quarter production from Cortez and the acceleration of the gold Rush development.

At the end of 'twenty 'twenty four and this.

This year, we're actually budgeting $40 million on this project.

Which is forecast to produce 100000 ounces in 'twenty 130000 ounces in 'twenty 'twenty four growing to around 400000 ounces by 2028.

<unk> 25 for drilling and the rest will be either.

Our work streams to ensure that we are at a stage, where we can take this.

Two towards a pre feasibility study at the end of the year.

All in all we see an exciting future for Cortez.

We believe that this drilling will outline the potential to more than triple the existing mineral resource base with mineralization hosted an Roc units that can potentially support large scale long haul open stoping.

And then looking forward to 'twenty 'twenty four we are also stepping up our planned underground development and grade control drilling if its across.

Both open pit and underground as part of our production delivery assurance program at our tier one operations and that does impact on the the cost.

Another key aspect of this program and this year's program includes the evaluation.

Cost this year.

Another noteworthy improvement during the year was the step up in performance at Turquoise Ridge. Following the commissioning of its third shaft and improved performance at this age order play we've still got some work to do on the Sage order close, but we know very clear about what we have to do too.

Of the access portal locations to.

To support development, along the strike of the ore body.

Which would initially be used for conversion drilling and then later be reused for mine haulage in support of a potential tier one production profile.

Outside Nevada, Barrick is actively expanding in North America.

Really return that that processing facility back to where we expected to operate as far as availabilities go.

And through generate of work in land consolidation.

We believe will now be able to start sharing with you the detail.

Turquoise ridge because of that is beginning to live up.

Two its full tier one potential.

Of our specific targets across the the U S and.

Cost for the EM complex were a little higher quarter on quarter, owing to the mix of production, including higher cost stockpile material as well as some additional maintenance costs.

And the reason we haven't got all the detail. It has we're still working on consolidating some of the ground.

As you know we are also partners and the Dodman Park project in Alaska, which is.

I always refer to.

Which we are systematically driving up the value curve.

To our Nevada gold mines complex as our value Foundation.

And as I've said, many times before I.

And you can see why.

Far from being a mature destination.

I also believe were under invested in our home country, Canada, where we're examining opportunities in the prospective Sturgeon Lake and Patrice projects.

It is a world class.

Goldfield, which were successfully export exploring for both Greenfields and brownfields growth opportunities.

Through grass roots, a district scale exploration programs.

We now have a five year.

Outlook on reserve replacement and that's quite important we built that.

Yeah.

And finally at our existing Hemlo mine, we continue to advance the open pit projects study.

Foundation and now we can like we do in our Ami.

And in Latam, we can we can point to what we have to do to continue to convert over the next five years.

We moved out now down south to what started as Latin America region, but has since expanded.

To encompass Asia and the Pacific.

And Argentina, Vela Dara something special delivered something special in the shape of our performance that beat its production and cost guidance and you know we've been struggling with that mind and last year, We said, let's stop cut it back or that reestablish it bringing a fresh set of eyes as far as <unk>.

Is not a mature.

Goldfield Theres lots of <unk>.

Leadership goes and really at.

Outside in it and one of those is the recent Robinson discovery with step out drilling is confirming our upside potential and the importance of Robertson as it comes with the additional advantage of mostly non refractory oxide ore.

The team did an excellent job in beating its guidance both on production and on costs and it's and in fact as a product of that we've added back about two years of mining to the pit because we're much more comfortable about.

Our ability to deliver value from that asset and of course.

And then of course call at calling the greater level hosts.

We're all waiting for the new government to start delivering on their promises to be a lot more.

Hosts multiple opportunities, which we expect to continue to support our reserve replacement.

Business friendly.

As I indicated earlier.

Elsewhere in the region, you'll have seen the years of negotiation with the government finally delivered a revived program in Papua New Guinea and the mine is scheduled to start pouring.

Focus little bit on four mile.

And and share the fact that we've decided to expand the drilling and other valuation work streams at this hundred per se in Barrick owned project with a view to starting a pre feasibility study at the end of 'twenty 'twenty, four and and this year, we actually budget.

Cold again this quarter.

I Didnt, Pakistan, the massive Rick Burdick copper gold project continues to advance steadily towards first production in 2028.

10 $40 million on this project 25 for drilling and the rest there'll be other.

Yeah.

Our flagship growth project the expansion of Pueblo Viejo in the Dominican Republic, and as I shared with you last time service suffered some setbacks in the pro form of premature failure of flotation gearboxes and the collapse of the Nu crushed ore stockpile convey.

Our work streams to ensure that we are at a stage, where we can take this.

Two towards a pre feasibility study at the end of the year.

Our structure.

And and now are highly competitive.

Richard and tenacious team.

Overcame the challenges to deliver an improved performance in quarter four notwithstanding.

Another key aspect of this program and this year's program includes the evaluation.

In addition to these two events one in 500 year tropical storm.

And I think it's important that.

When we first back in 2019, we had some focus on on managing the water and particularly ensuring that it stays within the footprint of the mine.

Of the access portal locations.

To support development, along the strike of the ore body, which would initially be used for conversion drilling and then later be reused for mine haulage in support of a potential tier one production profile.

And we were able to manage this massive storm event.

And and not have any major environmental incidents so a real tribute to the management.

Outside Nevada, Barrick is actively expanding in North America, and and through generate a work and land consolidation.

Just to remind you. This project is designed to sustain an average annual production in excess of 800000 ounces over life of mine beyond 2040, and we will have as I said earlier.

We believe will now be able to start sharing with you the detail.

<unk> of our specific targets across the the U S and.

We expect to have this conveyor.

And the reason we haven't got all the detail. It has we're still working on consolidating some of the ground.

Structure.

<unk> installed.

Later this quarter at the end of this quarter and worked and then we'll ramp up.

As you know we are also partners in the Darden and Park project in Alaska, which is.

We are currently.

Which we're systematically.

Working on the ramp up and I thought I'd show you this slide which is.

As I've said many times before.

I also believe were under invested in our home country, Canada, where we're examining opportunities in the prospective Sturgeon Lake and Patrice projects.

You can see.

The progress following the.

Repetitive failures of the new flotation gearboxes.

Through grass roots, a district scale exploration programs.

Which had to be redesigned.

Redesigned manufactured and re installed and this I can confirm as I indicated last quarter has been completed and was completed at the end of December.

And finally at our existing Hemlo mine, we continue to advance the open pit projects study.

And then the replacement of the crushed ore stockpile Convair is underway and <unk> and.

We moved out now down south to what started as Latin America region, but has since expanded.

And we are busy operating under a temporary installations.

To encompass Asia and the Pacific.

And and feeding the Sag mill, the second Sag mill, albeit at a reduced throughput.

And Argentina, Velo Dara something special delivered something special in the shape of our performance that beta its production and cost guidance and you know we've been struggling with that mind and last year, We said, let's stop cut it back or that reestablish it bringing a fresh set of eyes as far as <unk>.

And that ramp up will accelerate as I said after we install the replacement.

Conveyor infrastructure at the end of this quarter.

Elsewhere in the region, we continue to expand the Barrick footprint and again in Latam, We've we've really cleaned up our portfolio really refocused the exploration efforts on potential targets that have potential to meet our tier one ambitions.

Leadership goes and really it was the the team did an excellent job in beating its guidance both on production and on costs and it's and in fact as a product of that we've added back about two years of mining to the pit because we're much more comfortable about.

As part of that we've opened a new frontier in Ecuador, and secured a high quality portfolio together with our earnings.

Our ability to deliver value from that asset and of course.

An exciting advanced project in Peru, and.

We're all waiting for the new government to start delivering on their promises to be a lot more.

And then the valid era district fieldwork is defining drill ready targets N and.

<unk> business.

Up in the Dominican Republic.

Business friendly.

Elsewhere in the region, you'll have seen the years of negotiation with the government finally delivered a revived program in Papua New Guinea and the mine is scheduled to start pouring.

<unk> continues both within the Pueblo Viejo.

Joint venture lease area as well as across the country and again.

Excited that we'll be able to show you some good results.

Cold again this quarter.

In the next couple of quarters.

I had in Pakistan, the massive Rick Burdick copper Gold project continues to advance steadily towards first production in 2028.

Arising from network.

For the fifth consecutive year as I said in my introduction in fact ever since the merger the Africa and Middle East region delivered on its guidance.

Yeah.

Our flagship gross project the expansion of Pueblo Viejo in the Dominican Republic as I shared with you last time service suffered some setbacks in the pro form of premature failure of flotation gearboxes and the collapse of the Nu crushed ore stockpiled convey.

And replaced its mined reserves.

It has also.

Become a host Usama bearish, most exciting organic growth prospects, notably the la Manana copper mines expansion.

We start at.

<unk> structure.

And and all are highly committed and tenacious team.

Blue lagoon in Qatar, where the results speak for themselves.

Overcame the challenges to deliver an improved performance in quarter four notwithstanding.

Production was a little low as I indicated earlier and costs higher quarter on quarter on the back of lower grades in line with the revised plan following the gone Cotter pit wall failure.

In addition to these two events one in 500 year tropical storm and I think it's important that you know when we first back in 2019, we had some focus on on managing the water and particularly ensuring that it stays within the footprint of the mine and we were able to.

As also at Barrick the complex is transitioning to renewable energy.

And its second solar project, a 40 megawatt solar farm with a 36 megawatt battery energy storage system commissioned ahead of time and below the original capital cost estimates.

Manage this massive storm event.

And and not have any major environmental incidents so a real tribute to the management.

This last quarter.

Kibali is africa's largest gold mine and a leader in automation and clean energy much of the energy there drives kibali is already supplied by its three hydro power stations.

Just to remind you. This project is designed to sustain.

Average annual production in excess of 800000 ounces over a life of mine beyond 2040, and we will have as I said earlier.

And when the mines, New 16 megawatt solar power plant in battery storage system are commissioned in 'twenty 'twenty five it'll it crease its overall renewable energy penetration from 79% to 88%.

We expect to have this conveyor.

Structure.

We installed.

Later this quarter at the end of this quarter and worked and then we'll ramp up and we are currently.

And for six months of the year, it's electricity demand will be met entirely from renewables.

Working on the ramp up and I thought I'd show you this slide which is.

You can see.

The the progress following the repetitive failures of the new flotation gearboxes.

And in Tanzania.

Transformative tweak.

Partnership with the government continues to deliver exceptional results with north Mara and Bouillon Hulu, achieving the high end of their production guidance for the year and we're also expanding our footprint in the country in the hunt for new World class discoveries.

Which had to be redesigned manufactured and reinstall and this I can confirm as I indicated last quarter has been completed and was completed at the end of December.

And then the replacement of the crushed ore stockpile conveyor is underway and <unk> and we are busy operating under temporary installations, and and and feeding the Sag mill, the second Sag mill, albeit at a reduced throughput.

Our strategic decision.

To invest in the expansion of our copper portfolio has led to the Super pit the expansion project at La Manana in Zambia.

And this will transform lamont it into one of the world's major copper mines with projected annual production of 240000 tons per year over a 30 plus year life of mine.

And that ramp up will accelerate as I said after we install the replacement conveyor.

Conveyor infrastructure at the end of this quarter.

And it is a key component of the Zambian government drive to revive the country's copper industry over the next 10 years.

The estimated cost of the project has already indicated before is is around $1.9 billion and construction is scheduled to start early next year with 2028 targeted for first production the.

We've opened a new frontier in Ecuador, and secured a high quality portfolio.

Together with a.

An exciting advanced project in Peru.

The project is being fast tracked with the completion of the pre feasibility study and we project to start ordering long lead items.

And then the valid Arrow district field workers to fighting drill ready targets and then end up.

Up in the Dominican Republic exploration continues both within the Pueblo Viejo.

Towards the end of this year.

And how you can see are many brownfields and greenfields growth opportunities across the region of.

Joint venture lease area as well as across the country and again.

We're excited that we'll be able to show you some good results.

Of particular interest is our growing presence in Egypt, and Saudi Arabia.

In the next couple of quarters.

Where our partners at the Jumbo side copper mine, where with our partners at the Gib, Although saieed copper mine, we are rapidly progressing exploration on the very promising Omar Jamal permit.

Arising from network.

For the fifth consecutive year as I said in my introduction in fact ever since the merger the Africa and Middle East region delivered on its guidance Andrew.

We've already intersected significant Vms style mineralization at full prospects within this this property.

And replaced its mined reserves.

It is also.

Become a host Usama bearish, most exciting organic growth prospects, notably the Lamar on a copper mines expansion.

I've always said, ladies and gentlemen to be world class.

You have to be global.

And barrick's presence now extends across all the world's major gold and copper districts outside Russia and China.

We start at a <unk>.

Logan in Qatar, where the results speak for themselves.

Production was a little low as I indicated earlier and costs higher quarter on quarter on the back of lower grades in line with the revised plan following the gun Kauto pit wall failure.

And and we've also as I've said also rationalized our exploration portfolio. So we really have what's left is <unk>.

It targets that have the potential to meet our investment criteria.

As elsewhere at Barrick the complex is transitioning to renewable energy.

This is a solid foundation on which we can grow our production and our value and is directed by our proven strategy and supported by the broad spectrum of skills. We have developed two bowls, a modern mining business.

And our second solar project, a 40 megawatt solar farm with a 36 megawatt battery energy storage system commissioned ahead of time and below the original capital cost estimates.

This last quarter.

What are the key qualities that differentiates barrick from its peers.

Yeah.

Kibali is africa's largest gold mine and a leader in automation and clean energy much of the energy that drives Kibali is already supplied by its three hydro power stations.

As I noted earlier is our ability to replace our reserves organically.

And since 2019, we replaced 140% of the gold we've mined.

And when the mines, New 16 megawatt solar power plant in battery storage system are commissioned in 'twenty 'twenty five Italy, Kris it's overall renewable energy penetration from 79% to 88%.

Adding on 100% basis.

44 million ounces of proven and probable reserves across our managed assets.

And then last year, we did it again.

And I think people underestimate that you know how I talk about M&A.

And for six months of the year, it's electricity demand will be met entirely from renewables.

And you know.

When you do the same thing.

All the time over and over again and expecting a different outcome, there's a definition for that.

And in Tanzania.

Transformative tweak.

And paying a 50% premiums.

Our partnership with the government continues to deliver exceptional results with north Mara and Boolean Hulu, achieving the high end of their production guidance for the year and we're also expanding our footprint in the country in the hunt for new World class discoveries.

For assets and and and.

And not realizing the only way you can deliver is either find more we'll wait for the commodity price to lift your revenue line.

Finding.

Particularly our brownfields reserves rarely does sweat the assets sweat your capital and in it and again.

Our strategic decision.

To invest in the expansion of our copper portfolio has led to the Super pit the expansion project at La Manana in Zambia.

Yeah I've demonstrated this.

Many times throughout my career and.

And this will transform lamont it into one of the world's major copper mines with projected annual production of 240000 tons per year over a 30 plus year life of mine.

And I have no doubt that all focus.

<unk>.

We'll deliver again and and we I think have some examples of developing on which we can.

And it is a key component of the Zambian government drive to revive the country's copper industry over the next 10 years.

Prove out.

Our strategy.

So.

The estimated cost of the project has already indicated before is a is around $1.9 billion and construction is scheduled to start early next year with 2028 targeted for first production the.

That's why.

Barrick is not forced to buy its growth and its.

This growth is organically embedded.

And our business and you know our.

Our 10 year plan, which very few mining companies present.

The project is being fast tracked with the completion of the pre feasibility study and we project to start ordering long lead items.

<unk> is not there to to brag about our profile, but it is to give the market a clear understanding that our focus goes well beyond next year and that we are able to see challenges way ahead of down on.

Towards the end of this year.

And how you can see are many brownfields and greenfields growth opportunities across the region of.

Down in a in.

Of particular interest is our growing presence in Egypt, and Saudi Arabia.

In our runway and address them and that's always been.

Where our partners at the Jumbo side copper mine, where with our partners at the Gib, Although side copper mine, we are rapidly progressing exploration on the very promising Omar tomorrow permit.

Model.

And again.

Yeah.

I think the key here is that we're still working on the backend as I indicated of this profile to filling the gaps and based on our long term long track record I have no doubt we will do it in the fullness of time and Nevada is very good.

And we've already intersected significant Vms style mineralization at four prospects within this this property.

I've always said, ladies and gentlemen to be world class.

Example, because we're starting to get to a point, where we are able to look as I said forward a few years and know where the transition is the replacement is coming from.

You have to be global.

And barrick's presence now extends across all the world's major gold and copper districts outside Russia and China.

And again, we've got a long tail in Nevada, and the Big Challenge is how we bring it forward and one of the Big focuses this year is gonna be how we schedule.

And we've also as I said also rationalized our exploration portfolio. So we really have what's left is our targets that have the potential to meet our investment criteria.

The development of the greater level area all of those different mining sections.

This is a solid foundation on which we can grow our production and our value and is directed by our proven strategy and supported by the broad spectrum of skills, we have developed to bold a modern mining business.

In northern Collyn.

And to support this 10 year plan has a detailed five year of production.

And cost outlook.

Looking at the next five years.

There are few aspects to note.

What are the key qualities that differentiates barrick from its peers as I noted earlier is our ability to replace our reserves organically.

But an increasing production profile, which always brings the cost down.

An increase in capital expenditure over the next three years as we have now included the capital.

And since 2019.

Estimates for the rig codec and lemont is superb projects.

We've replaced 140% of the gold we've mined.

After which capital starts to decline and.

Adding on 100% basis.

And gold per ounce costs are flat.

44 million ounces of proven and probable reserves across our managed assets.

Year on year in 'twenty 'twenty, four and then start declining in line with increasing production.

And then last year, we did it again.

Also as previously flagged production in 'twenty 'twenty four is a little lower than.

And I think people underestimate that you know how I talk about M&A.

And you know.

Our previous estimate primarily due to the delay in the record of decision at gold rush and the slower ramp up of the expansion project at Pueblo Viejo.

Well when you do the same thing.

All the time over and over again and they expect a different outcome, there's a definition for that.

And paying a 50% premiums.

And MGM was always going to be a softer year in <unk> and 'twenty 'twenty four.

For assets, and and and and and not realizing the only way you can deliver is either find more we'll wait for the commodity price to lift your revenue line.

So the delay in the record of decision for gold Rush has exacerbated this.

Finding.

Our track record of replacing reserves.

Particularly our brownfields reserves rarely does sweat the assets sweat your capital and in it and again.

Gives us the confidence to know we can deliver on this outlook without the need for dilution re.

Yeah I've demonstrated this.

All delusion re.

Many times throughout my career and.

Acquisitions.

And I have no doubt that.

And importantly, we have the balance sheet strength and operating cash flows to fund this growth.

I'll focus.

<unk>.

We'll deliver again and and we I think have some examples of developing on which we can.

While still maintaining our industry leading credit rating.

As I've often said.

Prove our.

Mining is a long game and that should not be measured by quarters.

Our strategy.

I have no doubt that our strategy and partnership approach together with the quality of our assets and most importantly, our people.

So.

That's what Barry.

Barrick is not forced to buy its growth and.

We'll deliver real and sustainable long term value for our shareholders and our stakeholders. Thank you, ladies and gentlemen for your attention and we'll be happy to take questions.

It's this growth is organically embedded.

And our business and you know.

Our 10 year plan, which very few.

Mining companies present is not there to to brag about our profile, but it is to give the market a clear understanding that our focus goes well beyond next year and that we are able to see challenges way ahead of India down on it.

Operator over to you what we're going to do we're going to do.

Do the room first okay.

As greg's hands up.

Hi, Mark it's Greg Barnes from TD, just a couple of questions one.

And down in our in our runway and address them and that's always been our model.

There's been some political turmoil in Pakistan over the past week do.

And again.

Do you see that having any impact on your schedule on Rico <expletive>.

Yeah.

With the.

Sort of a change in government I'm not quite sure what's going on.

I think that the key here is that we're still working on the backend as I indicated of this profile to filling the gaps.

So yeah I mean.

So let me try to explain the situation when we when we when we.

And based on our long term long track record I have no doubt we will do it in the fullness of time and Nevada is a very good example, because you know we're starting to get to a point, where we are able to look as I've said forward a few years and know where the transition is.

Initiate the recommencement of.

Recur <expletive> following the Arbitration award.

With Imran Khan.

And and he is the person who actually brought it back into play along with us.

And then.

The replacement is coming from and and again, we've got a long tail in Nevada, and the Big Challenge is how we bring it forward and one of the Big focuses this year is gonna be how we schedule.

That that response than the government change to the Sheriff government and so, but we signed a framework agreement with Enron's government and and we signed the final agreement.

The development of the greater level area all of those different mining sections.

With the Sheriff's government, which was no different there is no change on the principles that were captured in the framework agreement and then we had that hole.

And northern Collyn.

And to support this 10 year plan has a detailed five year production.

Process endorsed by the Supreme Court. So those are the three sort of legs of government and and you know a lot of people. It's just it's an interesting political situation in Pakistan because there's.

And cost outlook.

Looking at the next five years.

There are a few aspects to note.

An increasing production profile, which always brings the cost down.

There was a lot of speculation about what would happen at elections.

And unlike many other emerging markets, everyone was encouraged to go and vote.

An increase in capital expenditure over the next three years as we have now included the capital S.

And they did so no and tried to boycott the elections and the outcome was was interesting in that it was sort of almost it was almost perfectly balanced about amongst the three big.

Estimates for the rig codec and lemont is super pit projects.

After which capital starts to decline.

And gold per ounce costs are flat.

Year on year in 'twenty 'twenty, four and then start declining in line with increasing production.

Political.

Entities, two one for want of a better word.

Also as previously flagged production in 'twenty 'twenty four is a little lower than.

So now the as you can imagine there's lots of energy being put into.

Our previous estimate primarily due to the delay in the record of decision that gold rush and the slower and ramp up of the expansion project at Pueblo Viejo.

Trying to form a government.

And the and the key is that.

Whichever coalition forms and it has to be a coalition whatever happens and whichever government.

And MGM was always going to be a <unk>.

After a year in <unk> and 'twenty 'twenty four.

Is it is a rises from this process.

So the delay in the record of decision for gold Rush has exacerbated this.

Any government that's formed will have a very strong opposition.

Okay.

As far as a.

Our track record of replacing reserves.

Richard It goes there's a bipartisan support for that project and we've never been partisan in anything we do it.

It gives us the confidence to know we can deliver on this outlook without the need for dilution re.

Ed.

Bad strategy in emerging markets. So we're working with continuing as usual.

All delusion re acquisitions.

Some of the best progress at we've shown and it's across the board, but has been with our.

And importantly, we have the balance sheet strength and operating cash flows to fund this growth, while still maintaining our industry leading credit rating.

Local.

Social programs and investment in working with the community. So right now as it stands and and you know the.

As I've often said.

Mining is a long game and that should not be measured by quarters.

Not only is that the federal government, but also the provinces of of voting and Theres, new expected new chief.

I have no doubt that our strategy and partnership approach together with the quality of our assets and most importantly, our people.

Chief Ministers, which is essentially the provincial head of government.

Which is important for mining because a lot of legislation. This is within the province, rather than at the center. So.

We'll deliver real and sustainable long term value for our shareholders and our stakeholders. Thank you, ladies and gentlemen for your attention and we'll be happy to take questions.

Yeah right now we'll continue as we do in most other countries.

Second question is around Nevada, and you can see in the final chart. There was a pick up in 'twenty five is there a broader turnaround happening there mark or is that just gold rush finally kicking in nowadays.

Operator over to you what we're going to do we're going to do.

Do the room first K Theres greg's hands up.

The Nevada team is now ready.

Really starting to <unk>.

Yeah.

Hi, Mark it's Greg Barnes from TD, just a couple of questions one.

Make progress and we've put a lot of effort in the US It was a big merger.

There's been some political turmoil in Pakistan over the past week.

With two very distinct cultures.

And then we had Covid and then you had this.

Do you see that having any impact on your schedule on Rico <expletive>.

This big turnover that we saw right across the United States economy, where an analyst and effectively what people refer to as skills shortage.

With the.

Sort of a change in government I'm not quite sure what's going on.

So yeah I mean.

So let me try to explain the situation when we when we when we.

And we really had to invest in and then you had the lithium mine as or promoters and you know and we're the biggest monitor in the U S, whereas supply of people to any promotional effort.

Initiated the Recommencement of.

Recur <expletive> following the Arbitration award it was with Imran Khan.

But we brought that turnover down materially in Nevada, We've got a new management team, it's much more caring who because that's the way. We are you it might be tough on standards, but were soft on people.

And and he is the person who actually brought it back into play along with us.

And then.

That that response, then the government change to the Sheriff government and so, but we signed a framework agreement with Enron's government and and we've signed the final agreement.

And and and and I'll just give you. Some examples if you look at them.

The roasters performance in the last two quarters of last year back to where we we have them right in the beginning and and the gold quarry roaster, which we've had to spend a lot of time and money on really starting to live up to.

With the Sheriff's government, which was no different there is no change on the principles that were captured in the framework agreement and then we had that hole.

Proteus endorsed by the Supreme Court. So those are the three sort of legs of government and and you know a lot of people. It is its an interesting political situation in Pakistan, because there's there was a lot of speculation about what would happen at elections.

Better efficiencies, we've got the final leg and its expansion in the middle of this year and then we'll have that locked 20% increase in throughput.

And we've spent a lot of time on.

On the Sage bowls, the whole sage infrastructure, we are getting that back to where we wanted to be and that is very core to our.

And unlike many other emerging markets, everyone was encouraged to go and vote.

And they did so no one tried to boycott the elections and the outcome was was interesting in that it was sort of almost it was almost perfectly balanced about amongst the three big.

Turquoise Ridge, which is one of the major high grade deposits long life deposits within the complex and actually hours down there.

Political.

Last week Saturday This last Saturday and and for me. It was really encouraging how are we managing the rock mechanics, and and all the way we mining and we are doing now and turquoise Ridge open stoping backfill and also cut in full.

Entities, two one for want of a better word.

So now the as you can imagine there's lots of energy being put into.

Trying to form a government.

And the and the key is that.

And bet on a much larger scale than they used to do it and we're doing it safely.

Whichever coalition forms and it has to be a coalition whatever happens and whichever government.

And very efficiently so that the.

Is it is a arises from this process.

I'm very confident that youll start seeing those costs come down because it's 11 gram ore body.

Any government that's formed will have a very strong opposition.

And so you know it's got a lot going for it and if we can get there.

As far as a.

Rick Codec goes there's a bipartisan support for that project and we've never been partisan and anything we do it.

<unk>.

The autoclave is working and we've we've.

We've got one more.

Big.

Change to do in the flow sheet of the order claims and Sage and what we've done Greg as we've put.

Ed.

Bad strategy in emerging market. So yeah. We are working we continue as usual.

What some of the best progress at we've shown and it's across the board, but has been without a law.

We've formed a team of autoclave experts Barrick has the biggest operator of autoclave in the world.

Local.

And what we've done is we've got them all around the world and we've put a group of process engineers together to look at all our autoclave installations and see how we can really learn from each other and lift the game to best practice and.

Social programs and investment in working with the community. So right now as it stands and and you know the.

Not only is it the federal government, but also the provinces of of voting and Theres, new expected new chief.

Chief Ministers, which is essentially the provincial head of government.

We've really uncovered some bottlenecks in the.

In this age.

Which is important for mining because a lot of the legislation. This is within the province, rather than at the center. So.

Mill that.

We've been <unk>.

Pressurizing the order claims to frequently largely around.

Yeah right now we'll continue as we do in most other countries.

The valves the longevity of valves and the reason is that we haven't we haven't got we missing a component of being able to normalize the pressure across the valve when we turn it off and on.

And so that's that's a big step forward, which which we just it's not a large expense were just about finished the design because we've got many examples and we will put that in place and for me. That's a key step forward and we've done a lot in in this age and we've got a team now working on.

The Nevada team is now.

Really starting to <unk>.

Make progress and you know we've put a lot of effort in there it was a big merger.

With two very distinct cultures.

And then we had Covid and then you had this this big turnover that we saw right across the United States economy, where an analyst and effectively what people refer to as skills shortage.

On process optimization and automation as far as process controls go and so we're really at the stage, where we where the operators and the management are now up to speed and the next step is you can use the automation because putting in automation without a competent.

And we really had to invest in and then you had the lithium mine as or promoters and you know and we're the biggest miner in the U S, whereas supply of people to any promotional effort.

Operating team is not an efficient way to get to increase.

But we brought that turnover down materially in Nevada, We've got a new management team, it's much more caring who because that's the way we argue it might be tough on standards, but were soft on people.

Throughput and so and we are the same in the.

We've got a completely new team and our roasters at Carlin and again, we are now performing above our K P. S.

Which has been a long time since we've done this so all around I mean your your your your commentary is real and I'm excited about improvements on that what what is dampening our costs at the moment is that.

And and and and I'll just give you. Some examples if you look at the.

We made a decision to bring in some contractors to get ahead of our development because.

On the double refractory ore, which comes from a big high grade deposits.

Better efficiencies, we've got the final leg and that is the expansion in the middle of this year and then we'll have that locked 20% increase in throughput.

We processed constrained as far as the roaster.

Nearly proceeds for not quiet because we've improved the efficiency.

And we've spent a lot of time on.

On the Sage bowls, the whole sage infrastructure, we are getting that back to where we wanted to be and that is very core to our.

And so the flexibility in your mind. This is a big mine it should have flexibility. It's a big mining complex you know when you're producing three 3 million ounces a year you shouldnt be worried about catching up a thousand ounces 2000 ounces yea or nay.

Turquoise Ridge, which is one of the major high grade deposits long life deposits within the complex and actually hours down there.

And so.

So, but what we found is that we were.

Through lack of flexibility underground because removing the whole business underground is that odd development and you know this better than anyone you get behind on development you constrain your mining flexibility and then you've got problems because you've got deal with a fall of ground at all.

Last week Saturday This last Saturday and and for me. It was really encouraging how are we managing the rock mechanics, and and all the way we mining and we're doing now and turquoise Ridge open stoping backfill and also cut in full.

And sort of operational issue so in all of our underground mines we've.

But on a much larger scale than they used to do it and we're doing it safely.

We brought in contract as to just help the team get ahead and it'll be a 12 to 18 months program and that does impact the costs because it's an extra cost.

And very efficiently. So you know the the.

I'm very confident that youll start seeing those costs come down because it's 11 gram ore body.

And they will take it back.

And so you know it's got a lot going for it and if we can get there.

From the contractors and in the fullness of time, so all around Nevada is in a better spot and I think you'll see it in last year.

<unk>.

The autoclave is working and we've we've we've got one more.

Big.

A change to do in the flow sheet of the autoclave is in Sage and what we've done Greg as we've put.

We had a bad start.

But when we.

We increased our performance every quarter.

We formed a team of autoclave experts Barrick has the biggest operator of autoclave in the world.

We didn't quite catch up but we did and that will continue in this this year, you'll see them performance improve through the through the year end.

As.

And I believe that we are building and as I said last year, we largely complete with the merger challenges it's now about.

You know focusing on efficiencies in delivery.

Yeah.

In this age.

Hi, Marc.

Mill that that we've been.

Excuse me Lawson Winder from Bank of America. Thank you very much for the presentation today.

Depressurizing the autoclave to frequently largely around.

<unk>.

I Love. This chart that you have of the five year production in gold cost forecast.

Valves, the longevity of valves and the reason is that we haven't we haven't got we missing a component of being able to normalize the pressure across the valve when we turn it off and on.

And in particularly the cash cost effectively this chart is showing your all in sustaining costs declining from the 1300 dollar range down to the 1200 dollar range and my question would be I mean is there an objective over the next five years to move.

And so that's that's a big step forward, which which we just it's not a large expense were just about finished the design because we've got many examples and we will put that in place and for me. That's a key step forward and we've done a lot you know in in this age and we've got a team working on.

From the <unk> hundred dollars per ounce it used today for reserves and for planning to $1200 per ounce in five years, and then as a follow up I would ask you know what inflation assumptions are built in here for 24, and then and then 25 to 2028.

On process optimization and automation.

So the all in sustaining cost come down to a thousand just to correct you. So.

As far as process controls go and so we're really at the stage, where we where the operators and the management to now up to speed and the next step is you can use the automation because putting in automation without a competent operating team is not an efficient way to get to increase.

And so you can see the flat year.

Year on year.

I'll, let Graham comment on the way, we manage our own.

Inputs on the on this muddle, but that's exactly right and the point here is that you know this.

Throughput and so and we are the same in the we've got a completely new team and our roasters at Carlin and again, we are now performing above our kpis.

And not to tell you how to do your work.

But no one ever looks at grade some I think some analysts do but a lot of people don't just look at the cost.

And in this industry is high grading.

And when you look at Barrick's grade great. It's not high grading at all all of our grades in the next five years off of all almost flat.

And so we manage.

We made a decision to bring in some contractors to get ahead of our development.

Optimization of our ore bodies.

Sure there are times, when we sort of look a little different to the market, but that's why we put these these charts up and and we're not different to the market we have some.

Yeah.

On the double refractory ore, which comes from a big high grade deposits.

Process constrained as far as the roaster.

Cost drivers and let me tell you what they are on there.

Nearly proceeds to not quite because we've improved the efficiency.

The first one is PV and PV is a low cost operator, so even with its current challenges is 'twenty 'twenty four is going to be you know one of our lowest cost mines, but it's going to come down even further.

And so the flexibility in your mind. This is a big mine that should have flexibility. It's a big mining complex you know when you're producing three 3 million ounces a year you shouldnt be worried about catching up a thousand ounces 2000 ounces yea or nay.

As we as we steady asset above 800000 ounces.

And so.

Gold Rush, we're now focused on development.

So, but what we found is that we were.

Through lack of flexibility underground because removing the whole business underground is that odd development and you know this better than anyone.

Which we haven't been able to do for the last.

Three years.

And.

And that comes at a cost so the gold rush.

Get behind on development you constrain your mining flexibility and then you've got problems because you've called deal with a fall of ground all.

The cost profile is higher and these next two years as we ramp up the and put the infrastructure in and get the the the.

It's sort of operational issue, so we and all our underground mines we've.

<unk>.

Ventilation up to standard and things like that which as you know that's the big challenge there and then pour grass headset.

We brought in contract as to just help the team get ahead and it'll be a 12 to 18 months program and that does impact the costs because it's an extra cost.

19, <unk> hundred dollars an ounce in this model.

Of course, it's a ramp up and and so that's not what it's long. It's also a low cost producer. So so those are the drivers.

And they will take it back.

From the contractors and in the fullness of time, so all around Nevada is in a better spot and I think you'll see it in last year we.

And Collyn has.

You know we had the crossroads challenge, where we where we had a large chunk of that what we had modeled as high grade that was faulted out so we need to work that through.

We had a bad start.

But when we.

We increased our performance every quarter.

We didn't quite catch up but we did and that will continue in this this year, you'll see the performance improve through the through the year end.

And get those costs down because the way that Colin was structured and so it's a big ship. So it's it takes a bit of time to turn.

As.

And I believe that we are building and as I said last year, we largely complete with a merger challenges it's now about.

But again, we're on on it and you'll see collyn grades are sort of.

4.34 point force our high grade.

You know focusing on efficiencies in delivery.

And as Scott open pits embedded in that so.

Yeah.

You know there's nothing here that.

Hi, Marc.

Excuse me Lawson Winder from Bank of America. Thank you very much for the presentation today.

And well, let me rephrase it.

We can explain these costs and they're not systemic and our operation operating costs. They are driven by specific.

<unk>.

I Love. This chart that you have upwards of five year production in gold cost forecast.

Decisions and events.

To explain the assumptions yeah sure two and the key thing here loosened is the as always with conscious is energy.

You know, we always say that around 20% of our cost is energy directly but indirectly when you look at energy in terms of the way it impacts zone.

From the <unk> hundred dollars per ounce it used today for reserves and for planning to $1200 per ounce in in five years, and then as a follow up I would ask you know what inflation assumptions are built in here for 24, and then and then 25 to 2028.

Reagents and other consumables in terms of the way the impacts of supply chain and knock on costs on just on suppliers and their input.

Of course, it's probably more like 50% when you look at the real impact of energy across the group.

So the all in sustaining cost come down to a thousand just to correct you. So.

So that's always going to be a key driver we were using $85. Brent is our assumption for this year, So that's pretty close to where spot things sports at about 82 at the moment.

And so you can see the flat.

Year on year.

I'll, let Graham comment on the way, we manage our iron inputs on the on this model, but that's exactly right and the point here is that you know this.

And that's a little higher than than what the average was for 2023.

But you know we.

Yeah.

Got it.

We're looking at where it is today long term, we bring that down to about $75 for our long term planning.

And not to tell you how to do your work.

But no one ever looks at grade some I think some analysts do but a lot of people does is look at the cost and in this industry is high grading and when you look at Barrick's grade great. It's not high grading at all all of our grades in the next five years off.

And 2024.

The other key area of of input price pressures on labor.

So labor makes up around 35% to 40% of ordinary course.

And there we're seeing an inflationary pressure year on year of around 4%. So that has a small impact on costs.

Almost flat and and so we manage.

Optimization of our ore bodies and sure there are times, when we sort of look a little different to the market, but that's why we put these these charts up and and we're not different to the market we have some.

Other than that most of the other input costs.

Relatively similar to 2023, and we were able to bring down.

One is of course in 2023 compared to 2022.

There are some areas, where it's still sticky, particularly regionally in North America things like cement lime.

Cost drivers and let me tell you what they are on there.

Explosives steel.

Little bit of.

Inflationary pressure in those areas, which we're working on to bring down but you know we've made we've made a lot of progress on it.

As we as we steady out at above 800000 ounces.

It's really those are those are the key drivers.

Just in terms of your first question, which was really about.

Gold Rush, we're now focused on development.

Are we planning to reduce our long term planning process centers no.

Which we haven't been able to do for the last.

The <unk> hundred is is we will continue to to.

Three years.

And.

And that comes with costs, so the gold rush.

Plan.

As we sit in the past, we always look at input costs and that's what we use.

The cost profile is higher in these next two years as we ramp up the and put the infrastructure in and get to the the ventilator.

For determining our long term planning process and those are certainly not going lower.

So 1300, as we will be it's just will make a lot more money.

Ventilation up to standard and things like that which as you know that's the big challenge there and then pour graph sits set.

And we will lock in their profitability.

19, <unk> hundred dollars an ounce in this model.

Sure.

Of course, it's a ramp up and and so you know that's not what it's long. It's also a low cost producer. So so those are the drivers.

Okay.

Mark. Thanks. This is a rough proceeds from eight capital you spent some time talking about Nevada gold mines I wanted to address the reserve replacement, where you where you've done a lot of work on this sort of five year plan.

And Collyn has.

You know we had the crossroads challenge, where we where we had a large chunk of that what we had modeled as high grade that was faulted out so we need to work that through.

Do you think you're in a position to have enough data and outlook that year over year reserve replacement.

It will be consistent at a similar grade ore, whereas the profile going to look a little bit more leaned, where you know operating mines are diminishing some of these more towards the later into that guidance period, we see the pickup.

And get those costs down because the way that Colin was structured and so it's a big ship. So it's it takes a bit of time to turn.

So in our modeling it.

But again, we're on on it and you'll see collyn grades are sort of.

We had budgeted.

50% replacement in Nevada, This year North America.

4.34 point force our high grade.

And we beat that replacement so she goes.

And it's got open pits embedded in that so.

Sure.

More efficient with our drilling.

So there's nothing here that.

But when we as we go into the next five years is still lumpy because Nevada, a lot of our reserves are underground so we bought <unk>.

And well, let me rephrase it.

We can explain these costs and they're not systemic and our operation operating costs, they driven by specific.

Resource inventory and then Theres a conversion behind that but we're not as I pointed out able to point to you a five year program over those five years in Nevada will replace all.

Decisions and events.

To explain the assumptions yeah sure two and the key thing here loosened is the as always with conscious is energy.

All the the gold we mine so.

You know, we always say that around 20% of our cost is energy directly but indirectly when you look at energy in terms of the way it impacts zone.

It's in the inventory is a lot more reliable.

And then we move it through.

Inferred.

Reagents and other consumables in terms of the way it impacts of supply chain and knock on costs on just on suppliers and their input.

<unk>.

Indicated and and and and measured and that model is and in a large lock level has been approached.

Of course, it's probably more like 50% when you look at the real impact of energy across the group.

Work in process, but and that the key is the reason we can shift some of our capital to more greenfields targets, because we know that systematic we've caught up with the drilling.

So that's always going to be a key driver we were using $85. Brent is our assumption for this year. So that's pretty close to where spot I think sports at about 82 at the moment.

And we will we are catching up because this year is quite a big expense on drilling.

And that's a little higher than than what the average was for 2023.

And with the development getting ahead, we can cover the the reserves and the and the grade control confidence because that's all a part of.

But you know we were looking at where it is today long term, we bring that down to about $75 for our long term planning.

And 2024.

Good underground mining practice.

The other key area of of the input price pressures on labor.

But we've been able to relocate reallocate some of that.

Budget to more Greenfields targets and we've got a lot we have a number of greenfields targets and this is now when you look at four mile.

So labor makes up around 35% to 40% of ordinary course.

They are we seeing an inflationary pressure year on year of around 4%. So that has a small impact on costs.

And you look at the way we've.

Men aged debt.

Other than that most of the other input costs.

That is exactly one mile away from Cortez.

Relatively similar to 2023, and we were able to bring down.

And it's a multimillion ounce years 14 million ounces in gold rush and is substantially more.

One is of course in 2023 compared to 2022.

And it's and it's higher grade because we go into breakthroughs from mall.

There are some areas, where it's still sticky, particularly regionally in North America things like cement lime.

Flat sort of playing out.

Explosives steel.

Or bodies, because we go into a big brittle hailer around an intrusive. So the rock is behaving differently and it gives us really chunky grades.

Little bit of.

Inflationary pressure in those areas, which we're working on to bring down but you know we've made we've made a lot of progress.

It's really those are those are the key drivers.

Bridget shape.

Just in terms of your first question, which was really about.

Our bodies, so and the question is how many more of those are there and I'll give you. An example, we shared with you a drill hole last quarter.

Are we planning to reduce our long term planning price launch centers no.

In the Mega put in turquoise ridge.

The <unk> hundred is is we will continue to to.

The old twin creeks, we drilled a hole down there the mega pit is the only tier one ore body in the call an area the whole clar region.

Plan.

As we sit in the past, we always look at input costs and that's what we use.

For determining our long term planning process and those are certainly not going lower.

Where no one's ever found the feeder.

So 1300, as we will be it's just will make a lot more money.

And we know the feeders are the ones that really deliver the value.

And we will lock in their profitability.

And they're calling system and so we drove that whole it was significant 70 meters at <unk>.

Mark.

All grade grade.

And so we are slowly.

Yes.

Getting enough data to Victor and just to to really test that concept. So we've got that we've got the whole.

A little Boulder basin, we've got the north and southern extensions now of the Turquoise Ridge underground mine, we back and looking at Getchell because oh.

Do you think you're in a position to have enough data and outlook that year over year reserve replacement.

We'll be consistent at a similar grade ore, whereas the profile going to look a little bit more latent where you know operating mines diminishing some of these more towards the later into that guidance period, we see the pickup.

Our confidence in being able to manage the rock mechanics.

Have rock mechanics everywhere.

When we got the one where none.

So we now modeling it you know we had budgeted.

And so our underground.

The controls.

50% replacement in Nevada, this year in North America.

And and being able to mine safely without.

And we beat that replacement just because we were.

Really getting impacted by poor ground conditions.

More efficient with our drilling.

Gives us much more calm.

But when we as we go into the next five years. It is still lumpy because Nevada, a lot of our reserves are underground so we bought <unk>.

Confidence to go back into getchell.

And then we've got there's an extension further north than the level, what we call a greater level the measure the geologists come up with about four different names but.

Resource inventory and then there is a conversion behind that but we're not as I pointed out able to point to you a five year program over those five years in Nevada will replace all.

In my mind, it's the greater level area, and then north of that we've got.

Another new target that we've.

Sure it's on the map and.

All the the gold we mine so.

And and then trying to model the.

It's in the inventory is a lot more reliable.

The the gold rush.

And then we move it through.

Four mile trained because it's another call and trained.

Inferred.

<unk>.

Indicated and and and and measured and that model is and in a large lock level has been our approach.

And and and and look for duplications structural duplicate duplication is the big focus on our team now so I'd say too that the geology team and again when we got there there were no.

Work in process, but and that the key is the reason we can shift some of our capital to more greenfield targets, because we know that systematic we've caught up with the drilling.

Exploration Osaka.

Its own silo and there was no MRM.

And today, we've got an integrated team that really understands what it's doing and and I challenge them to drill I say block, 15% of your budget needs to be.

And we will we are catching up because this year is quite a big expense on drilling.

And with the development getting ahead, we can cover the the reserves and the and the grade control confidence because that's all a part of and.

Drill holes, where theres no other drill holes within three miles.

And they said look we are we've got like 40%.

Of that we are already there ahead of what I was pushing so yeah, I think there's real opportunity and then there's more opportunity outside of the joint venture area as well in Nevada that we were chasing.

Good underground mining practice.

But we've been able to relocate reallocate some of that.

Budget to more Greenfield targets and we've got a lot we have a number of great Greenfields targets and this is now when you look at four mile.

Hi, Mark its linear from CIBC.

And you look at the way we manage that.

A couple of quick questions. The first one just on Kibali I think he said you guys sorry. It was Lulu that had a pit wall failure is that cleaned up now.

That is exactly one mile away from Cortez.

And it's a multimillion ounce 14 million ounces in gold rush, and there's substantially more and its and its higher grade because we go into breccias from mall.

So it shouldn't impact grades going into this year no no.

Impacting the profile because we are still putting the ramp down but it's you know we knew it would slide we just didn't expect it to go all the way to the bottom.

Flatter sort of planar.

Or bodies, because we go into a big brittle hailer around an intrusive. So the rock is behaving differently and it gives us really chunky grades.

Hum.

As you know in an open pit mining we monitor.

That was all the time and from time to time, they do fail and it's best that you know about it so that no one gets injured and we've got very focused.

Shape.

Or bodies, so and the question is how many more of those are there and I'll give you. An example, we shared with you a drill hole last quarter.

Trolls on pit wall stability, so we see it coming.

And then secondly, I was going to ask about four mile and you went into that a little bit but could you just give us an idea of how much of a four mile is in the.

In the Mega put in turquoise ridge.

The old twin creeks, we drilled a hole down there the mega pit is the only tier one ore body in the call an area the whole car region.

Resource and what would be expect what would be expected to be included in the PFS.

Where no one's ever found the feeder.

That's like the base you'd be working with so let me just answer the first one differently and that is four mile is now just starting to come into our 10 year plan because we've rolled it for the year.

And we know the feeders are the ones that really deliver the value.

And they're calling system and so we drove that whole it was significant 70 meters at <unk>.

So just for your information and as you know under the deal we can put four mile to.

All grade grade.

And so we are slowly.

Getting enough data to Victor and just to to really test that concept. So we've got that we've got the whole.

To newmont.

As a partner.

If we get a feasibility study and that meet certain criteria and newmont needs to pay up or dilute.

A little Boulder basin, we've got the north and southern extensions now of the Turquoise Ridge underground mine, we back and looking at Getchell because oh.

That's the agreement we have.

The I mean, you know we have a good relationship with newmont at the Nevada joint venture level, and and you know our.

Our confidence in being able to manage the rock mechanics.

Our view is that we need to continue to show prosper activity and I think currently the reserves are kind of call that 3 million ounces.

Have rock mechanics everywhere.

When we got there they won where none.

And so our underground.

Southern you ought to take a nature through that.

The controls.

And and being able to mine safely without really.

Yes.

Currently we're at about 7 million ounces in third.

Ready getting impacted by poor ground conditions.

Small amount and indicators.

The reasonable spike, but we're expecting to defined by the end of each year.

Gives us much more.

Confidence to go back into Getchell, and then we've got Theres an extension further north in the level, what we call a greater level. The mezz the geologists come up with like four different names, but.

We'll support initial pre feasibility study.

Pre feasibility study, we see being effective.

Oh incremental studies as we continue to expand new ore body because through the course of this year as well as defining the resource base will still be defining significant additional inventory, which we expect to outline the garage. So formal through the next 10 years.

In my mind is that the greater level area, and then north of that we've got.

Another new target that we've.

Sure It is on the map and.

And and and then you know trying to model the.

The gold rush.

On that so 2.7 million ounces of inferred would be the base and what creates that.

For mild trained because it's another call and trained.

And and and and look for duplications structural duplicate duplications is the big focus on our team now so I'd say too that the geology team and again when we got there there were no.

Note that our current resources.

Yeah.

Great.

Hi, Congrats.

Okay Alright, that's good. Thank you that's it from me.

Yeah.

I think I think it's Jackie pricing landscape BMO, thanks, very much Mark and I just had another question about four miles. So hope you don't mind, you mentioned in the MD&A that you're considering and surface portal to decouple. The project from Gold Rush and then you and then I think the wording you used but ultimately complement the goldfish development can you talk a little there.

Exploration was locker.

Its own silo and there was no MRM.

And today, we've got an integrated team that really understands what it's doing and and I challenge them to drill I'll say it like 15% of your budget needs to be a.

Drill holes, where theres no other drill holes within three miles.

What that means would you consider keeping it outside of the joint venture or is it still within the joint venture just operating separately, but processed through through the same.

And they said look we are we've got like 40%.

That were already there ahead of what I was pushing so yeah, I think there's real opportunity and then there's more opportunity outside of the joint venture area as well in Nevada that we were chasing.

Milling and infrastructures is or what you mean.

Well I'll answer it so.

So.

There's clearly scared of whatever they say.

Yes.

The.

Hi, Mark it's an ear from CIBC.

There is a process that I just touched on to get it into the joint venture and and we've got to demonstrate viability at the same time theres always negotiate a negotiable options as as we do it.

A couple of quick questions. The first one just on Kibali I think he said you guys. Sorry. It was Lulu that had a pit wall failure is that cleaned up now or is yet so it shouldn't impact grades going into this year no no impact.

Impacting the profile because we are still putting the ramp down but it's you know we knew it would slide we just didn't expect it to go all the way to the bottom.

But the key is when you look at gold rush.

It's not an optimal access because we access it on the twin declines and they come out on the Hill and then you got to get the ore to the processing facility.

I mean, we you know as you know in an open pit mining we monitor that.

So what we're looking at is is there's two other access is the one that's the most attractive is the northern access which is a six kilometer drive but it brings out the or in the valley close to the processing facility. So that makes.

That was all the time and from time to time, they do fail and it's best that you know about it so that no one gets injured and we've got very focused controls on pit wall stability. So we see it coming and.

And then secondly, I was going to ask about four mile and you went into that a little bit but could you just give us an idea of how much of a four mile is in the.

Good sense on just logistics at the same time if you.

If you drive a drive.

Resource and what would be expect what would be expected to be included in the PFS in terms of its like the base you'd be working with so let me just answer the first one differently and that is four mile is now just starting to come into our 10 year plan because we've rolled it 40 or so just for you.

Through that struck.

You open up the entire area for infill drilling and it'll be easy easy to move it from because trying to bank. These all these ore bodies.

From the surface is a very expensive exercise.

And just to give you an idea of if you just take the.

All information and as you know under the deal we can put four mile too.

The section from rose to Sofia.

And we can access that through the twin.

To newmont.

Drives from gold rush and their intention is to do that.

As a partner if we get a feasibility study and that meet certain criteria and newmont needs to pay up or dilute.

Our agreement we can use.

Nevada joint venture infrastructure.

That's the agreement we have.

So we can access that that we've drilled out that area will you save about $500 million.

The I mean, you know we have a good relationship with newmont at the Nevada joint venture level and and you know.

So that's had the difference in trying to draw.

Our view is that we need to continue to show prostate activity and I think currently the reserves are hard to call that 3 million ounces.

Close spaced holes.

From surface.

So that so where are we going with salmon is what we wanted to do is.

Southern you ought to take in Asia through that.

Shows the viability and the pre feasibility and then the question that reverted decided do we take part of this or all of this so.

Yes.

Currently we've got 7 million ounces in third.

Small amount and indicators.

You know to freeze ability in and pass the test.

The reasonable spike, but we're expecting to defined by the end of each year.

<unk> will support initial pre feasibility study.

Or do we sit down with new mountain and structure, a more reasonable way of bringing this asset which is absolutely critical for the long term profile of of Nevada gold mines in some form but yeah, we've had very high level conversations about.

Pre feasibility study recently.

The concept, but were not we havent.

We haven't.

<unk> engaged in any formal discussions.

But the from our point of view.

It's very important for us to demonstrate to our shareholders. The value of this world class asset and so we and we've allocated part of our.

Global exploration Budd.

Budget too.

Doing this work this year and it's a three year program.

To get this done.

And just to be Crystal clear Jackie.

Intention would always be that it would come into the joint venture. So that's not what we're saying which is saying we could access it from our separate axes I appreciate that thank you and one other question on a different topic. If you don't mind walking us through maybe the process of restarting Parker I just some modeling help I would expect as the year goes on and there'll be more and more.

Ramped up but if you could maybe give us some color in terms of like what Q1 might look like would be helpful. Thank you.

Yeah. This is tapping your Guinea project.

Yeah.

So.

So we've got 60000 ounces and our guidance attributable over this year.

I think the we've spent a bit of time with all of you on on explaining to you that.

We what we do start doing as soon as we start generating revenues.

Even at these higher costs, we start paying back off care and maintenance costs. So we sweep Ola.

The non land owner equity that we don't own a.

To start repaying so the cash flow start moving fairly quickly.

I'll give you the hurdles and by the end of this quarter, we'll have a better a sort of.

Bitter granted granularity for you but.

So the we've.

We're commissioning the plant now and we've run non gold.

Material through it.

And that we're now starting to gear up to put cold.

[noise] contained material into the processing plant or why would be our best.

And and we can do that and produce gold with certain so oxide material.

Do we need the the power suppliers switch on the autoclave.

So that's the next step and right now we've just deployed a we just secured a helicopter which can work with our team to Iraq.

I think there are three or four PAH PAH.

Pylons that are have been toppled to put them back in place and we are working with the community and the Halo Governor, which is a different province to where we operate to make sure we secure.

The gas fired power supply to the mine, because we need that to be able to run the mines properly.

And that's all built into this years.

Ramp up so I think by the end of the quarter, we will have a much better outlook for you there on the granularity of where we go yeah I just say, it's very much a second half of the year.

Jackie we will produce some gold in the first half, but it's really about the <unk>.

Second half, where we expect to produce the majority of that guidance that mark spoke about.

And we I mean, we are well on track we've done better than we expected unemployed people and ramping up the employment, we've still got security issues that we're dealing with as you I mean, I don't know how close you followup happen, you're getting with that those rights in <unk>.

What would be the other day and the security capacity of the government is under pressure but.

But we are working and the one thing as everyone appreciates I mean after all this is couple of years, there's no doubt about the importance of program to the economy of Papua New Guinea, because it is a very profitable business.

So it does deliver real value to the economy.

Yes, Martin priority from Veritas investment research.

Just a question here on lunar one.

We were expecting some.

Cost reduction going forward.

I knew that of course has been increasing a lot this year.

Can you.

Give us more detail on that.

So.

Most definitely you'll see.

Short.

Some reduction in costs for the for the earn our gardens Youll see it.

The big focus at the moment is we still pre stripping.

The what we call the <unk>.

Trading 42 plan, which is the plan b for the Super pit.

But.

Martin to your point the mining costs are critical the mining efficiencies and mining costs are the real driver on this expansion. So you won't see those costs come down as we as.

As we are.

I realize those machines and make sure that we start mining because the big thing first was too.

Establish the.

The pets that we can mine efficiently I'm sorry.

Simon you want to add to that yeah, I would just I would just say you're right from 2025, there's a big step down on costs and as we get those efficiencies sovereigns.

Simon do you want to comment.

Yes.

I mean, obviously there.

Patient sees all kind of come with scale as we expand with the expansion.

In mining at a annual run rate of about 130 million tonnes will be incrementally over the course of about four to five years, we were stepping up to 250 million tons per annum.

With that step up obviously, where it scales of economy will also be shifting to a much larger fleet.

In line with the new fleet that we've been gradually bringing into the water and just started to come online at the end of last year.

So there is your answer so you're right.

So 2025 should I be thinking that you'd be like 10, or 20% lowering cost or is that too much to us.

I'm not sure the sovereign.

Number in your head that's that's not unreasonable.

Yes, it's in the range.

Okay.

Rob do you want to move to operator can we move to the people online. Please.

Secondly did.

To join the question queue.

You May press Star then one on your telephone keypad, you will hear a tone acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any Keith cause Italia question. Please press Star then two.

The first question comes from Daniel Major UBS. Please go ahead.

Hi, Marc Greg can you hear me okay.

Thanks, Dave.

Very well thanks.

Yes couple of questions.

The first one a couple of them on Capex first one can reasonably simple one how much of the guidance.

Within your guidance sorry is included for early development spend on.

Laguardia and record it.

I'm going to answer that.

So food.

Who.

Rick Burdick, the capital guidance for 'twenty 'twenty four is $140 million.

It is a very profitable business.

On for insurance settlement.

So it does deliver real value to the economy.

$280 million for the project.

And for.

In the morning, or our capital spend is 100 million.

Yes, Martin Pradier from Veritas investment research.

Just a question here on lunar one.

Okay.

Great.

We were expecting some cost reduction going forward.

And then.

Second one.

When I look at the slide on.

I know that of course has been increasing a lot this year.

The five year forecast you see capex come out to about $3 5 billion as we head towards the.

Can you.

Give us more detail on that.

So.

Finalization of the budgets for those kind of major projects. How are you feeling in terms of the range of Capex previously given <unk> seen continued inflation since yeah.

Most definitely you'll see a S S.

Short.

Some reduction in costs for the for the year in our gardens Youll see it.

The big focus at the moment is we still pre stripping.

Yes. It says estimates so given it is.

Still the right kind of ballpark or should we expect the.

The what we call the <unk>.

Capex to edge up from the previous ranges you gave for those who academic in the morning. So so I can answer that so based on the pre fees. The numbers are there and thereabouts, but remember we are moving towards feasibility study proper design and so we really expect to to tidy up on.

Training 42 plan, which is the plan b for the Super pad.

But.

Martin to your point the mining costs are critical the mining efficiencies and mining costs are the real driver on this expansion. So you won't see those costs come down as we.

Those.

Capital estimates towards the end of the year.

As we are.

Mobilize those machines and make sure that we start mining because the big thing first was too.

But right now we've got no reason to change the numbers Yeah. That's right I mean, I think Don the key is there's a lot of trade of studies going on at the moment.

Establish the.

The pet so that we can mine efficiently.

So.

As you would imagine that involves potentially putting in more capex, but then getting opex benefits for it and that's what the teams busy with when they finish that work we will have the.

Simon you want to add to that yeah, I would just I would just say you're right from 2025, there's a big step down on costs and as we get those efficiencies.

We will have the updated numbers and with that will come in the b.

Simon do you want to comment.

Yes.

Operating costs as well.

I mean, obviously there's.

Patients, who use <unk> com web scale as we expand with the expansion.

But.

We're still in we're still in the same ballpark and then just just to build on that.

In mining at a annual run rate of about 130 million tonnes will be incrementally over the course of about four to five years stepping up to 250 million tonnes per annum.

It's worth noting that.

Lamont is going to be one step ahead of Richard <expletive>.

Because it's an expansion, but the same lack of podium partners are working with are both teams. So we're really looking for.

With that step up obviously, where it scales of economy will also be shifting to <unk>.

Larger fleet in line with the new fleet that we've been gradually bringing into la Manana just started to come online at the end of last year.

For you know to lever our purchasing power the way we design things. So you have duplication in design and there's a lot of benefits.

So there is ill answer so you're right.

So 2025 should I be thinking that you'd be like 10, or 20% lowering cost or is that too much to us.

And running it's like running a makeup.

Mine development so.

We expect to see some efficiencies or benefits of that.

I'm not sure.

Do you have that number in your head that's that's not unreasonable.

Great. Thanks.

Just one more if I could.

Okay.

Just on your reserve assumptions. Some Graham you mentioned just sticking with 1300 on the gold side three Bucks is pretty conservative on the.

Yes, it's in there.

The range Okay.

Okay.

Oh do you want to move to operator can we move to the people online. Please.

On the copper front and I know, it's a management team over the years, you've been conservative on the assumptions for two good reasons, but.

Certainly.

To join the question queue.

You May press Star then one on your telephone keypad, you will hear a tone acknowledging your request.

Is that a number that is going to stay and if you were to meet that higher would that change in any way your design of your copper expansions.

Using a speakerphone please pick up your handset before pressing any Keith to withdraw your question. Please press Star then two.

Yeah, I think there and this is a strategy question really.

Our next question comes from Danielle laser with UBS. Please go ahead.

And what what you'll find is that the.

The numbers the 1300, particularly if you look at the gold or gold deposits. We've got a few outliers as you've seen in the MD&A are particularly telling them on where you've got full AR capital repayment in your.

Hi, Marc Greg can you hear me, Okay, yes perfectly thanks, Dave.

Yes couple of questions.

Yes, the first one a couple of them.

Capex first one can reasonably simple one how much of the guidance within your guidance. Sorry is included for early development spend on legal.

And your sustaining capital is as low as it is in Togo and will adjust because we don't want to leave any gold in the ground.

Towards the end of the mine, but generally if you look at barrick's ore bodies.

<unk> and <unk>.

You want to answer that.

If you change the.

So.

Full.

1300, all you do is add waste.

Retro <expletive> the capital guidance for 2000 $24 million to $140 million.

It had very low grade because.

The the ore body shapes are still within the 1300 envelope.

For our share is that right.

If you follow what I'm, saying.

$280 million for the project.

And similarly for copper.

And for.

In the morning, our capital spend is $100 million.

We of course will look at marginal opportunities at higher copper.

Prices as we've always done you know, even when we used a $1000.

Okay.

Thanks, Greg.

And then.

You all remember well maybe you want.

Second one.

When I look at the slide.

The big put at it.

On the five year forecast you see capex come out to about $3 5 billion as we head towards the.

Earlier, we took off the gold price went up to 1800 and 2011, and we took a whole lot of gold it was high grade, but low recoveries and we took it because we could push it back in six months and we could access the gold and once we have paid for the strip.

So finalization of the budgets for both kind of major projects. How are you feeling in terms of the range of Capex previously given <unk> seen continued inflation since.

Since those estimates so given it is still the right kind of ballpark or should we expect the capex to edge up from the previous ranges you gave for both recognition of Nomura. So so I can answer that based on the pre fees. The numbers are there and thereabouts, but remember we are moving towards a feasibility study.

It was really good business. So we do have we will manage the flexibility inherent in a specific ore body, but right now the 1300 on the gold.

Deposits really defines the geological boundary store.

And and $3 on the on the copper projects as we.

Proper.

Design and so we'll expect to tidy up on those.

Grow our understanding and Rick have <expletive> you know will be reconsidering that but right now we don't have to do that and even you know I've.

Capital estimates towards the end of the year.

But right now we've got no reason to change the numbers, yes, that's right I mean, I think Don the key is there's a lot of trade off studies going on at the moment.

And a lot of time with sovereign.

On the Yamana stuff because.

So.

Again that $3 is it's tight but we get the whole economic.

As you would imagine that involves potentially putting in more capex, but then getting opex benefits for it and that's what the team is busy with when they finished that work we will have the.

The ore body, the geology into that $3 envelope.

Simon do you want to add to that.

We will have the updated numbers and with that will come the the operating costs as well.

You've covered it well.

But.

The only other thing I would point to Dan is that we did lift the resource price for copper resources this year to $4 two.

We're still in we're still in the same ballpark and then just just to build on that.

It's worth noting that.

Lamont is going to be one step ahead of Richard <expletive>.

To reflect.

You know I guess, the point that you're making which is.

Because it's an expansion, but the same lack of podium partners are working with are both teams. So we're really looking.

The risk on copper seems to be on the upside and we wanted to make sure that we weren't sterilizing.

Assets and opportunities.

So certainly we take onboard you.

For you know to lever our purchasing power the way we design things. So you have duplication in design, there's a lot of benefits.

To a point that.

Prices could go a lot higher and just.

Fundamental reason for that is.

It's the same as we use a 1700 dollar resource if you want to keep the infrastructure out away from the ore body.

And running it's like running a makeup.

Modern development, so we expect to see some efficiencies or benefits of that.

So that salary source.

And certainly a $4 is not a.

Ambitious number but again when you look at the the payer ability of even the porphyry that rigor <expletive> we just want to make sure that we don't put infrastructure and a good example is got a escondida and Zaldivar you fund infrastructure all over their pets that shouldn't davina.

Great. Thanks.

Just one more if I could.

<unk>.

Just on your reserve assumptions. Some Graham you mentioned Youre sticking with 1300 on the gold side three Bucks is pretty conservative on the.

On the copper front and I know the management team over the years, you've been conservative on the assumptions for good reasons, but.

Expensive to move lack railway lines and things like that.

Is that a number that is going to stay and if you were to meet that higher would that change in any way your design of your copper expansions.

Very clear thank you very much.

The next question comes from Bob Brackett with Bernstein Research. Please go ahead.

Yeah, I think Dan this is a strategy question really.

Yes. Good afternoon, you mentioned adjectives assigned to M&A that included dilution Aerie and delusion Aerie.

And what what you'll find is that the.

The numbers the 1300, particularly if you look at the gold or gold deposits. We've got a few outliers as you've seen in the MD&A of particularly talk on where you've got full capital repayment and your.

The opposite of those adjectives look like to you.

How do you mean explain that.

Yes, so what M&A would be neither dilution aerie to barrick or delusion aerie to use a team that you would contemplate.

And your sustaining capital is as low as it is in Togo and will adjust.

Because we don't want to leave any gold in the ground.

Go ahead and throw out.

Towards the end of the mine, but generally if you look at barrick's ore bodies.

On the options if you need.

Further so no.

No I got it so let's go back in history.

If you change the.

We acquired Bhp's assets in my latest start Rand gold.

1300, all you do is add waste.

It had very low grade because.

It was a very accretionary acquisition.

The the ore body shapes are still within the 1300 envelope.

We then acquired motto.

And a hostile takeover.

If you follow what I'm, saying.

And similarly for copper.

That was equally.

No.

Our criteria, which is kibali, whereas your wishes Kibali and then the Randgold Barrick merger was definitely a value, creating exercise and it's a long term platform and.

We of course will look at marginal opportunities at higher copper.

Prices as we've always done you know even when we use the $1000.

You all remember well maybe you out.

Most other companies that did M&A around that time and pay a premium for it I think.

The big put it at your earlier, we took off the gold price went up to 1800 and 2011, and we took a whole lot of gold it was high grade, but low recoveries and we took it because we could push it back in six months and we could access the gold.

It's not not possible due to show.

A long term.

New foundation for for those transactions and then we did the Acacia take out.

And once we had paid for the strip. It was really good business. So we do have we will manage the flexibility inherent in a specific ore body, but right now.

Which again has been a.

<unk> investment.

And of course, although we didn't issue paper for the Nevada joint venture.

Certainly.

The 1300 on the gold.

The some of the.

The hull is substantially more valuable than the sum of the individual parts. So those are the only transactions I've been involved in and they all worked.

Deposits really defines the geological boundary store.

And $3 on the on the copper projects as we.

Grow our understanding and Richard <expletive> you know will be reconsidering that but right now we don't have to do that and even.

<unk>.

And I speak on behalf of myself and the team at Barrick, So so that.

And a lot of Tivos sovereign.

Those are all.

Our value added transactions and they have all come with.

On the Yamana stuff because.

Again that $3 is it's tight but we get the whole economic.

They all at market.

And all had organic growth embedded in the assets as well so.

Ore body, the geology into that three dollar envelope.

And do you want to add to that.

And we that's what wed like to do.

I think you've covered it well.

That's those are the opportunities that we look for.

The only other thing I would point to Dan is that we did lift the resource price for copper resources this year to $4 two.

Very clear I take the point on organic growth with whatever you might acquire as being critical.

To reflect I.

Pleasure.

I guess, the point that you're making which is that the.

The risk on copper seems to be on the upside and we wanted to make sure that we weren't sterilizing assets and opportunities.

Once again, if you have a question.

Please press Star then one.

Our next question comes from Tanya that disconnect at Scotia Bank. Please go ahead.

So certainly we take onboard your viewpoint that.

Great. Thank you for taking my question good afternoon, everyone.

Copper prices could go a lot higher.

The fundamental reason for that is.

Yes.

Hi, I just wanted to ask Graeme.

It's the same as we used a 1700 dollar resource if you want to keep the infrastructure out away from the ore body.

On the capital program can you just give me an idea what we're unique.

So that salary source.

Here to get this mine up and running.

And certainly a $4 is not a.

Ambitious number but again when you look at the the payer ability of even the porphyry that rig today, we just want to make sure that we don't put infrastructure and a good example is go to Escondida and Zaldivar you find infrastructure all over the pet that Shouldnt Davina.

You want me to answer it.

Tanya, it's approximately $70 million our share.

Thank you for that.

Expensive to move like railway lines and things like that.

Quick question for you on Nevada Gold mines.

Very clear thank you very much.

I just want to make.

The core tenants, where you aren't going to be in lower production in 'twenty four over 23 do you get that crossroad.

The next question comes from Bob Brackett with Bernstein Research. Please go ahead.

The model changing reducing outside now can you just explain to me what exactly.

Yes. Good afternoon, you mentioned adjectives assigned to M&A that included dilution Aerie and delusion Aerie, one would be opposite of those adjectives look like to you.

Crossroads.

Crossroads, we had.

What we've been doing since 2019 is spinning our wheels to bank.

The deposits.

How do you mean, a flame that.

And I just gave you.

Yes, so what M&A wouldn't be neither dilution aerie to barrick or delusion area to use the team that you would contemplate.

On the Newmont side most of the.

The models the the business plans are.

Go ahead and throw out.

12, or 18 months old.

The option if you need.

Further.

And on Barrick's side it was yeah.

No I got it so let's go back in history. So we acquired Bhp's assets in Mali to start Rand gold that was a very accretionary acquisition.

Almost.

Current.

Because VAG was focused on high grading and in numerous focused on survival.

We then acquired motto.

And so when we put the two together as we pointed out at the time there was a lot of chatter there wasn't a mineral resource management Department, even is we had a catch up and.

And a hostile takeover.

That was equally.

Our criteria, which is kibali, whereas your wishes Kibali and then the Randgold Barrick merger was definitely a value, creating exercise and it's a long term platform and.

We have caught up a lot, we still catching up a bit because with the pressure on them.

Accessing people.

We brought on the contracts because we just weren't getting on top of the development. We have pushed it ahead, but not enough.

Most other companies that did M&A around that time and pay a premium for it.

And so.

Yeah, you know, it's not not possible due to show.

<unk>.

Crossroads.

Sure.

Long term.

When we as we drilled it out there was a high grade when we were there the analysts on the last visit we were right in the high grade of the of the ore body.

A new foundation for for those transactions and then we did the Acacia take out.

Which again has been a spectacular investment.

But what we hadn't seen is a fault.

And of course, although we didn't issue paper for the Nevada joint venture.

That slashed part of that higher grade ore fed deaths. So when we went down another bench when we drill the holes we ended up modeling.

Certainly.

The some of the.

The hole is substantially more valuable than the sum of the individual parts. So those are the only transactions ive been involved in and they all worked.

Our fault, which cut off the ore body, which reduced.

The volume of high grade material and if you recall there was always a bit of a spike in our production and Cortez in our forecast so.

And and I speak on behalf of myself and the team at Barrick. So so that those are.

So that's the reason we've now drilled the ore body at this we what we're doing now is pushing back the crossroads pit and we will come back in two.

Our value added transactions and they've all come with.

They all at market.

Two the schedule.

And all had organic growth embedded in the assets as well so.

Next year.

But not at the grade that we were expecting and I bet on top of that the team is also being able to.

And we that's what we'd like to do.

And the other oxide material from.

That's those are the opportunities that we look for.

From.

Very clear I take the point on organic growth with whatever you might acquire as being critical.

Some of the other pets and the expansions to those pits, which will help us feed but not at the grade that we had originally planned that's that's the story for the oxide drop in this year.

Pleasure.

Once again, if you have a question.

Please press Star then one.

Okay.

The next question comes from Tanya the disconnect that Scotiabank. Please go ahead.

Is that crossroads.

This yeah.

Okay.

Great Great. Thank you for taking my question good afternoon, everyone.

Great. Thank you for that and then maybe.

Tanya just to complete that we lost ounces and the delay in the rod.

Good morning.

Hi, I just wanted to ask Greg.

Because once we got the record of decision, we rarely had to re.

Ram and the capital for.

Can you just give me an idea of what we need to spend.

Mine up and running.

Focus.

Gold rush to ramp up.

We have to get the ventilation shaft in place we've got a there's a whole lot of infrastructure that we need to put in place to be able to get that long term ramp up in the mine. So those both those impacted on 2020 four.

Do you want me to answer it.

Tanya, it's approx approximately $70 million our share.

Okay.

Alright.

Okay. Thank you for that.

Maybe I could just on just Nevada gold mines in general there's a lot of work that youre doing there.

Mark.

Quick question for you on Nevada Gold mines.

And.

I just wanted to.

I guess I'm trying to understand.

The Cortez, where you aren't going to be in lower production in 'twenty four 'twenty three do you get that crossroad.

Labor you mentioned that the turnover.

Uh huh.

Decrease can you just give me an idea what the turnover rate right now.

Model changing reducing outside mill can you just explain to me what exactly crossroad. So.

I know when we went down that you were looking for a modest progression to be sounds like where are we on that and whereas the training program going for these underground mine.

So at Crossroads, we had what we've been doing.

2019 is spinning our wheels to bank.

Got it.

We're below 15% turnover now which is substantial.

The deposits.

And I'll just give you the on the newmont side most of the.

What is it.

<unk> 40 so.

The models the the business plans are.

So we are below 14% and it's interesting our training mines people that go through the training mined so far we haven't got a lot of data, but they stay there.

12, or 18 months old.

And on Barrick's side it was.

They generally stay because now we've got properly skilled people and Theres no stress in their lives they know what to do in <unk>.

Almost.

Current.

Because <unk> was focused on high grading and and Newmont was focused on survival.

And.

The other thing too is.

The first phase of of putting these two mines together.

And so when we put the two together as we pointed out at the time there was a lot of there wasn't a mineral resource management Department, even is we had to catch up and.

And it's important this conversation about people.

Because you can go and smashed to different cultures, together and force it for a while but if you're building a business and our mining industry doesn't have that if you look across the mining industry and you look at the executive group Theres No executive group in the mining industry that is entrenched as much as.

We have caught up a lot, we still catching up a bit because with the pressure on them.

Accessing people.

We've brought in the contracts because we just weren't getting on top of the development. We had pushed it ahead, but not enough.

As the Barrick team and because we've put an enormous amount of time and effort into into our skill base.

And so.

<unk>.

Crossroads.

When we as we drilled it out there was a high grade when we were there the Atlas on the last visit we were right in the high grade of the of the ore body.

So.

So that's so what we were first one under Greg Walker's we need to get everyone together and iron out the discrepancies in disparities and all that sort of stuff and bring the union and because theres a unionized workforce embedded in the call and open cost side of the business.

But what we haven't seen is a fault.

That slot.

Part of that high grade ore fed deaths. So when we went down another bench when we drill the holes we ended up modeling.

And then in 'twenty two 'twenty three of you.

Our fault, which cut off the ore body, which reduce the.

End of 'twenty to 'twenty, two and Greg left it was specifically designed to change the culture. Another step in that as we move the ownership from Al go back to the operations.

The volume of high grade material and if you recall there was always a bit of a spark in our production and Cortez in our forecast so.

Because when you when you're transitioning you've got to have more control.

So that's the reason we've now drilled the ore body artist, we what we're doing now is pushing back the crossroads pit and we will come back in two.

And we changed all the general managers and the end of 2022 and we shifted the the control back reduced and we still reducing that.

To the schedule.

Next year.

Alco footprint.

But not at the grade that we were expecting and I bet on top of that the team has also been able to.

And and and we brought in some new senior management to lead the team and that management was not it.

And the other oxide material from from.

It didn't come from.

Some of the other pets and the expansions to those pits, which will help us feed but not at the grade that we had originally planned that's that's the story for the oxide drop in this year.

Barrick, we brought it from outside and so the results that you see and I've got no doubt you're going to continue to see it is a product of that.

Human capital engineering effectively to get it as I say in the MD&A and in my presentation ready to align it with the Barrick DNI and and you know I've spent a lot of personal time there.

Okay. So did we lose out there is that crossroad.

Yes, yes.

Okay.

Hey, Thank you for that and then maybe.

Yeah, just to complete that we lost ounces and the delay in the rod.

Leading this process because its people.

And and I'm.

Because.

Once we got the record of decision, we rarely had to re.

I'm more comfortable today than I've ever been that we're making real progress with the people in and that's always if you one sustainable change you've got to.

Focus.

Gold rush to ramp up so you know we have to get the ventilation shaft in place. We've got a there's a whole lot of infrastructure that we need to put in place to be able to get that long term ramp up in the mine. So those both those impacted on 2020 four.

You Gotta get people aligned.

Like this year.

When you look at this.

Head office.

Third it covers this corporate office 48 people and if you take out.

The big wigs, it's probably 38.

Okay.

Yes.

Nevada Gold mines in general there's a lot of work that youre doing there.

And it does.

Double the amount of work than three.

And.

Three times that people did before.

Thank you from China.

The young <unk>.

Labor you mentioned that the turnover.

Very energetic super efficient in what they do and they fully plugged into our organization and a rider and in fact, we have rotations now with these young folk here into our operations and they.

Uh huh.

Decrease can you just give me an idea what the turnover rate right now.

I know when we were that you were looking for a lot of progression could be felt like where are we on that and whereas the training program going for these underground mine.

Our analysts because we've got financial analysts. This is financial is in analyzing our efficiencies embedded here and Bruce and I mean, it's.

And then again in August.

We're below 15% turnover now which is substantial.

What is it.

It's a very efficient we're using.

40 so.

So we are below 14% and it's interesting our training mines people that go through the training mined so far we haven't got a lot of data, but they stay.

<unk> data platform is to show that we are fully connected across the organization around the world and we can consolidate too and I ask questions now we can consolidate the financials even income statements.

They generally stay because now we've got properly skilled people and Theres no stress in their lives they know what to do and and.

Across the group distill them or look at benchmarking and.

And and and and.

The measure of the way the one company will run, particularly Lac La Manana now with a drive to get these costs down on the on the big plant. So.

The other thing too is.

The first phase of of putting these two mines together.

And it's important this conversation about people.

Because you can go and smash two different cultures, together and faucet for awhile, but if you're building a business and our mining industry doesn't have that if you look across the mining industry and you look at the executive group.

It really is a motivating thing to get people aligned with our business rather than just coming in to do it.

A task.

Okay, I'm, just trying to benchmark Mark how is 14% is that an average for Nevada.

Theres No executive group in the mining industry that is entrenched as much as as the Barrick team and because we've put an enormous amount of time and effort into into our skill base.

Hi.

Benchmark turnover.

No. That's I mean in America have you ever American.

That's low very low.

And so.

So that's so what we with first one under Greg Walker's we need to get everyone together and iron out the discrepancies in disparities and all that sort of stuff and bring the union and because theres a unionized workforce embedded in the call and open cost side of the business.

And we got to get it lower you know the places where we're tip when you tipped us when you when you create the trust between the workforce and the leadership you tip. It and then you become as a winning team when you become a winning team everyone gets bonuses.

It becomes it feeds on itself and.

And then in 'twenty two 'twenty three of you.

Otherwise you will always have it and and Tonya.

End of 'twenty to 'twenty, two and Greg left it was specifically designed to change the culture. Another step in that as we move the ownership from Alka back to the operations.

The first time in my entire career 40 years.

First time are found people scared of being fired was in Nevada.

Because when you when you're transitioning you've got to have more control and and we changed all the general managers and the end of 2022 and we shifted the the control back reduced and we still reducing that.

There was fear because it was a style of management, which was very.

Non confrontational, but quite tough.

And didn't didn't all go well for inclusivity and Barrick is it carrying over in ASEAN, we care about.

Alco footprint.

And and we brought in some new.

New senior management to lead the team and that management was not.

People in our team in there and you do that you start getting the benefits and are we seeing that.

It didn't come from.

Derek we brought it from outside and so the results that you see and I've got no doubt you're going to continue to see it is a product of that.

Alright, thank you.

Okay.

There are no more questions.

Well, thank you very much everyone and thanks for coming and those particularly made the effort to come out here.

Human capital engineering effectively to get it as I say in the MD&A and in my presentation ready to align it with the Barrick DNI and and you know I've spent a lot of personal time there.

I think we've got some.

Some snacks.

<unk>.

So join US next door, if you if you wish Youre welcome and.

For those on the call sorry about that.

Leading this process because its people.

A T. Whoever you are thank you.

And and I'm, you know I'm more comfortable today than I've ever been that we're making real progress with the people in and that's always if you want sustainable change you've got to.

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

Right.

You've gotta get people aligned.

Like this year.

Okay.

When you look at this.

[noise].

Head office.

We had it covers this corporate office 48 people and if you take out the.

The big wigs, it's probably 38.

And and it does.

Double the amount of work than three.

Three times that people did before.

The young very energetic super efficient in what they do and they fully plugged into our organization.

In fact, we have rotations now with these young folk here into our operations and they are.

Analysts because we've got financial analysts. This is financial is in analyzing our efficiencies embedded here and Bruce and I mean, it's.

It's a very efficient we using yard.

Across the group distill them or look at benchmarking and.

Measure the way the one company will run.

Particularly like Lamont and now with a drive to get these costs down on the on the big plant. So.

It really is a motivating thing to get people aligned with the business rather than just coming in to do it.

A task.

Okay, I'm, just trying to benchmark Mark how is 14% is that an average for Nevada.

Hi.

Trying to benchmark the turnover.

Now that I mean in America.

Barrick and.

That's low very low.

And we got to get it like the places where we tip. When you tip. This when you when you create the trust but.

Tween, the workforce and the leadership you tip. It and then you become as a winning team when you become a winning team everyone gets bonuses.

It becomes it feeds on itself.

Otherwise you will always have it and and Tonya.

First time in my entire career 40 years.

The first time are found.

People scared of being fired was in Nevada.

You know there was fear because it was a style of management, which was very.

Non confrontational, but quite tough.

And didn't didn't all go well for inclusivity, and Barrick is that carrying over and our nation, we care about our.

People in our team in there and you do that you start getting the benefits and are we seeing that.

Alright, thank you.

Alright.

There are no more questions.

Well. Thank you very much everyone. Thanks for coming and those particularly made the effort to come out here I.

I think we've got some.

Some snacks.

<unk>.

Yeah.

So join US next door, if you if you wish Youre welcome and.

For those on the call sorry about that but.

Bought up a T wherever you are.

You.

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

Right.

Okay.

Yeah.

[noise].

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