Q1 2024 Barrick Gold Corp Earnings Call
[music].
Ladies and gentlemen, thank you for standing by.
This is the event operator.
Speaker Change: Come to Barrick's results presentation for the first quarter of 'twenty 'twenty four.
Okay.
Speaker Change: Following today's presentation, a question and answer session will be conducted.
Speaker Change: If you have a question and are joining the event by telephone. Please press Star then one on your telephone keypad.
Speaker Change: We'll also be taking questions from those in the room.
Speaker Change: As a reminder, this event is being recorded and a replay will be available on barrick's website. Later today may 1st 'twenty 'twenty four.
Speaker Change: I would now like to turn.
Speaker Change: You over to Mark Bristow, President and CEO of Baird. Please go ahead Sir.
Dennis Mark Bristow: Thank you very much and just before we start let's just check this out because it is a feedback on it how are we doing.
Speaker Change: Are you sure.
Dennis Mark Bristow: How many concern it.
Speaker Change: Okay.
Dennis Mark Bristow: What's that very good morning, and good afternoon, ladies and gentlemen.
Speaker Change: Particularly for those who have made an effort to come out.
Speaker Change: And join US in person. Thank you very much for coming out.
Speaker Change: So I thought I'd start.
Dennis Mark Bristow: To date.
Dennis Mark Bristow: Looking across the world, where we've witnessed change accelerating.
Dennis Mark Bristow: Uncertainty.
Dennis Mark Bristow: Coming more permanent.
Dennis Mark Bristow: And Cai I'll take events a lot more common.
Dennis Mark Bristow: And the global pursuit of renewable energy has boosted the demand for copper.
Dennis Mark Bristow: And with it the process up 15% in the first quarter of this year.
Speaker Change: Unprecedented conflict plus economic uncertainty have driven the gold price up 15% last year.
Speaker Change: And by the same margin so far this year to record hot.
Speaker Change: Confirming once again the mental status.
Speaker Change: Ultimate Safe Haven asset.
Speaker Change: Disappointingly barrick's share price lock those all of its peers.
Speaker Change: Lagging the golf course.
Speaker Change: Which raises the question.
Speaker Change: If you believe in gold why not to invest in the producers.
Speaker Change: The investment thesis as far as Barrick is concerned.
Speaker Change: Is that all embedded ability to grow.
Speaker Change: Copper and gold production.
Speaker Change: Amplify our profitability.
Speaker Change: In a rising commodity market.
Speaker Change: I'll show you.
Speaker Change: In the course of this presentation.
Speaker Change: Yeah.
Speaker Change: This presentation will include some forward looking statements.
Speaker Change: Your attention to the customary cautionary statement, which can also be found.
Speaker Change: On our website.
Speaker Change: Barrick.
Speaker Change: Currently directly and indirectly.
Speaker Change: Please more than 50000 people.
Speaker Change: Across our operations.
Speaker Change: And their health and safety of all our primary concern.
Speaker Change: Which is why I start the presentation with a report on up past quarters performance on this front.
Speaker Change: Tragically.
Speaker Change: Africa bonds had two fatalities in January as we announced at the time of our quarter four results.
Speaker Change: This has intensified already laser focus.
Speaker Change: On eliminating fatalities as a critical component of.
Speaker Change: All of our journey to zero.
Speaker Change: And a carefully considered fatal risk management program.
Speaker Change: That's been rolled out worldwide.
Speaker Change: This has been receiving an enormous amount of focus.
Speaker Change: Over the past 18 months and we as an executive team are determined to achieve our goal of zero fatalities.
Speaker Change: Operations.
Speaker Change: On a more positive note.
Speaker Change: Various injury frequency rates continued to decrease significantly against the same period last year.
Speaker Change: And this last quarter.
Speaker Change: And how about thoughts.
Speaker Change: Our lost time injury free.
Speaker Change: The Latin America, and Asia Pacific Region has had a particularly good run in record safety record, having just completed 14 consecutive months.
Speaker Change: With no lost time injuries.
Speaker Change: [noise] closely allied to health and safety is our complete commitment to sustainability.
Speaker Change: In its broadest sense.
Speaker Change: Sustainability, what's the DNA of our business long before.
Speaker Change: It is now called ESG.
Speaker Change: It's long before that.
Speaker Change: E S G became an investment matrix metric.
Speaker Change: Think holistic approach grounded on the concepts.
Speaker Change: Partnership and stakeholder recognition.
Speaker Change: Has had earned us a critically important social license.
Speaker Change: We operate.
Speaker Change: Some of the past quarters achievements are listed here and we'll give you a flavor of the tangible results we.
Speaker Change: We are achieving.
Speaker Change: You will find a comprehensive account of our performance and targets.
Speaker Change: Annual sustainability report scheduled for publication later this month.
Speaker Change: You should look it up on our website.
Speaker Change: We turned out.
Speaker Change: Two the overall highlights of the past quarter.
Speaker Change: Got it it was a similar start to the year as last year gold production was in line with plan, but down on the previous quarter.
Speaker Change: As I'll explain in the next slide.
Speaker Change: And on track to meet our full year guidance copper production was also in line with a lot with last year and like cold is forecast to grow through the.
Speaker Change: I'll also deal with the improved financial results compared to this time last year a little later.
Speaker Change: Successful brownfields exploration.
Speaker Change: The very engine that drives barrick's unparalleled ability to replace its mine reserves continue to deliver.
Speaker Change: And the Greenfields programs are expanding our portfolio and opportunities around the globe.
Speaker Change: These all of the operating results.
Speaker Change: Dissipated seasonal maintenance.
Speaker Change: The most important being.
Speaker Change: Tableau via conveyor Ria bold and mine plan sequencing resulted in love gold production, which in turn increased our cost per ounce.
Speaker Change: The commissioning of Pvs replacement convert is now.
Speaker Change: Complete.
Speaker Change: And the resumption of mining and processing at Pall Gras will also support the gold production ramp up we have planned for the rest of the AR.
Speaker Change: The lower production offset by higher gold processing supported improved and supported improved financial results when compared with the same period last year.
Speaker Change: You are on your net earnings per share increased spots, 143% for the quarter, while adjusted net earnings per share grew by 36%.
Speaker Change: But not gene cents per share we were ahead of consensus for the quarter.
Speaker Change: The attributable EBITDA margin rose by 5% to 41% and the operating cash flows remained strong at $760 million.
Speaker Change: The quarterly dividend was maintained at 10 cents per share and it's worth noting that at a time when both the gold and copper sectors are ex growth very strong balance sheet supports its organic growth projects, enabling it to project a significant rising production profile for the new.
Speaker Change: Next five years and beyond.
Speaker Change: We stopped the operational review in North America as usual with the ramp up of the gold Rush underground mountain now well under way at Nevada Gold mines. Our focus has also shifted to the nearby Barrick owned.
Speaker Change: Advanced haul mile Tau it with its world class potential.
Speaker Change: The successful permitting of gold rush will accelerate for miles progress up the value curve.
Speaker Change: And the significant evaluation drill program has commenced this month okay.
Speaker Change: Testing, the large inventory base and growing the mineral resources to inform a pre feasibility study decision expected by the end of this year.
Speaker Change: In other news from Nevada.
Speaker Change: <unk> Greening of Barrick's global grid advanced with the commissioning of the first 100 megawatts of the Tia <expletive> the T S solar power plants.
Speaker Change: Which is expected to have the second hundred megawatt phase commissioned.
Speaker Change:
Speaker Change: And the second quarter of this year.
Speaker Change: Okay.
Speaker Change: As guided.
Speaker Change: Nevada Gold mines made a softer start to the year.
Speaker Change: Cortez came in ahead of plan in fact.
Speaker Change: Significantly ahead of fed calling was on track on our run rate through for the whole year and turquoise Ridge is expecting a significant improvement as it addresses its backfill and development backlog following a planned shutdown in the quarter.
Speaker Change: Yeah.
Speaker Change: For a supposedly mature gold district, Nevada remains a highly prospective tijuana terrain for our exploration team.
Speaker Change: There are many substantial brownfields targets shown on this map will support its five year reserve replacement program.
Speaker Change: And the team is advancing a pipeline of exciting greenfield targets.
Speaker Change: Meanwhile, continued work on the ore body models have highlighted some significant untested potential.
Speaker Change: Okay.
Speaker Change: I've spoken to you about the greater level before that.
Speaker Change: Another example of this work is shown in these before and after cross sections of the Turquoise Ridge deposit.
Speaker Change: Demonstrating how the updating of geological models can drive growth.
Speaker Change: It's early days, but that's probably see yourself remodeling has generated some exciting new targets.
Speaker Change: Highlighted in those red circles on the right hand section.
Speaker Change: I anticipate that these will result in a substantial additions to.
Speaker Change: To the already high grade turquoise ridge and dominant.
Speaker Change: Yeah.
Speaker Change: We move now down to the Latin America, and Asia Pacific Region.
Speaker Change: Which had a very good quarter all around.
Speaker Change: Highlights included the progress at Pueblo Viejo.
Speaker Change: Which I've already referred to another strong performance from valley there are.
Speaker Change: Yes.
Speaker Change: And the restart of operations at Polaris.
Speaker Change: Break codex feasibility study is on track for completion by year end with first production scheduled in 2028.
Speaker Change: Pablo vehicle.
Speaker Change: Process grades wallets, new conveyor was being rebuilt.
Speaker Change: And that's impacted production for the quarter.
Speaker Change: Which also affected costs.
Speaker Change: The replacement conveyor has now been commissioned and.
Speaker Change: The plant is expected to ramp up during the second quarter.
Speaker Change: As production increases we express it.
Speaker Change: <unk> costs to come down.
Speaker Change: With the plant expansion now substantially complete.
Speaker Change: I guess has shifted to the related new tailings storage facility.
Speaker Change: Work is progressing as planned and the feasibility study is expected to be completed in quarter three.
Speaker Change: Or a third.
Speaker Change: To the Pueblo Viejo expansion earlier.
Speaker Change: Our flagship organic growth project.
Speaker Change: And this is why.
Speaker Change: To increase and sustain gold production at or above 800000 ounces.
Speaker Change: For at least 20 years.
Speaker Change: It's worth remembering.
Speaker Change: The public vehicle was on the verge of close about five years ago.
Speaker Change: When the new Barrick team figured out how to unlock its vast reserve and secure its long term future as a tier one gold mine.
Speaker Change: Showing how is a graphic illustrates elisa.
Speaker Change: Illustrating the impact of equipment failure has had on the project last year and more importantly.
Speaker Change: Where are we headed now with the.
Speaker Change: New structure, having been rebuilt and commission.
Speaker Change: In Africa, and the Middle East New logo in Qatar produced its usual steady tier one performance the feasibility for the La Manana Superpotent expansion remains on track for completion by the end of the.
Speaker Change: And the infrastructure for mining.
Speaker Change: The jumbo side copper mines loved one was completed continuing transition to renewable energy at Blue Lagoon Dakota, and Kibali also delivered significant savings.
Speaker Change: [noise].
Speaker Change: Do you look at Qatar.
Speaker Change: Increased production and kept costs partly controlled it.
Speaker Change: Second solar plant was commissioned during the quarter, replacing heavy fuel oil with solar power as an energy source delivering a cost saving of some $6 million just this last quarter.
Speaker Change: While on moly.
Speaker Change: We are aware of pet press speculation.
Speaker Change: He reported in Africa last year, and recently picked up by the Canadian media.
Speaker Change: About the government's so-called intention to expropriate.
Speaker Change: Look on Qatar complex.
Speaker Change: As we have previously disclosed we have been in ongoing dialogue with the government of Mali on several matches that impact operations.
Speaker Change: As part of our engagement.
Speaker Change: The government has recently recently confirmed to us that.
Speaker Change: They do not intend to expropriate the complex.
Speaker Change: Like any government body wishes to maximize their benefits from mining and Barrick remains committed to an equitable sharing all those economic benefits without host country.
Speaker Change: While protecting our shareholder rights.
Speaker Change: Our engagement with the government is continuing on that basis.
Speaker Change: The new law district remains.
Speaker Change: Highly prospective.
Speaker Change: Deep framework drilling is targeting a potential for a large scale extensions on repetitions of the main the hog Rag Elia system.
Speaker Change: Results confirmed that the system is still open.
Speaker Change: With high grade mineralization present at depth.
Speaker Change: Shallow drilling to the south is returning encouraging intersections from the actual name Elas structure.
Speaker Change: And at Kibali production was down in line with lower grades from planned waste stripping at.
Speaker Change: Two open pits.
Speaker Change: The mine is expected to show much improved results.
Speaker Change: On the back of higher grades in the second half of the as we complete that stripping.
Speaker Change: In exploration during the quarter.
Speaker Change: Around Kibali further defined a significant high grade 10.
Speaker Change: Trained immediately adjacent and similar to the massive K C D deposit on which commodity was bolt.
Speaker Change: We are modeling numerous high grade intersections.
Speaker Change: Potential load shapes, which could deliver a substantial.
Speaker Change: Satellite project.
Speaker Change: Yeah.
Speaker Change: In Tanzania, North virus production was lower quarter on quarter in line with its modern Plaid.
Speaker Change: Lower production meant higher costs.
Speaker Change: Boolean, who lose production was flat with higher tons processed offsetting lower grades lower grades with the higher tons were reflected in the increase in costs for the quarter, but again, we're expecting that to come down over the next three quarters.
Speaker Change: Okay.
Speaker Change: A globally significant organic copper growth project to Lamont copper mountain Super that the expansion is on track for first production in 2028.
Speaker Change: The accelerated feasibility study is scheduled for completion by the end of this year.
Speaker Change: With construction expected to start in 2025.
Speaker Change: The expansion will transform the water into a major copper mine with a loss of more than 30 years.
Speaker Change: A planned shutdown and lower grades reduced production in quarter one.
Speaker Change: But again, the higher grades going forward all deliver improvements through the year.
Speaker Change: Barrick also.
Speaker Change: On the back of all the rumors in the market continues to work with Cisco.
Speaker Change: To alleviate pressure on the Zambian power grid, and we do not expect any Polish or teachers to impact production.
Speaker Change: We are in the process of finalizing a power supply agreement with Cisco, which.
Speaker Change: Secure offtake for Mozambique.
Speaker Change: And in addition to this we have implemented a cogeneration program using a diesel standby generators.
Speaker Change: This will provide alternative sources of call of some 29 megawatts, which is more than 50% of the Lamar on his current board.
Speaker Change: I've often said.
Speaker Change: That exploration is to a mining company, what R&D is to the pharmaceutical industry.
Speaker Change: Discovery and development.
Speaker Change: The only true drivers of value creation in the body industry.
Speaker Change: Our teams continue their search for tier one opportunities across the worlds gold and copper regions.
Speaker Change: Shown on this map.
Speaker Change: In the United States, we continue to advance our Nevada portfolio, both in the joint venture as well as in Barrick's name itself.
Speaker Change: Along with developing opportunities in a number of other prospective states.
Speaker Change: In Canada, we are developing a growing portfolio of projects.
Speaker Change: Across the superior congrats on.
Speaker Change: And then Latin America, we testing priority targets around whether there are popular with the Ecuador.
Speaker Change: Ecuador, Peru, and more recently Jamaica.
Speaker Change: And in Africa mentioned, the hot potential targets around new logo on Carter in Kibali earlier.
Speaker Change: And we're increasing our ground holding and many of the countries where we operate.
Speaker Change: And then Pakistan Audiologist, so focused on unlocking the maximum value of the multiple knowing the fall freeze within the rig Kodiak project area as well as looking for new near Baden.
Speaker Change: Discoveries.
Speaker Change: And in Saudi Arabia, we've agreed with our partner BARDA and to add additional ground around job outside.
Speaker Change: And Omar double N beyond.
Speaker Change: The joint venture.
Speaker Change: Yeah.
Speaker Change: As I touched on earlier.
Speaker Change: Our transition to clean energy.
Speaker Change: <unk> is making steady progress.
Speaker Change: And not only propels us towards our goal of a 30% reduction in greenhouse gas emissions by 2030.
Speaker Change: It also drives efficiency.
Speaker Change: And cut costs.
Speaker Change: Another object of key importance to us is ensuring we have a minimum impact on our environment today and for future generations.
Speaker Change: Our support of the Grumbling National Park, and the D C and the protection of the Sage grouse population in Nevada are just two examples of our approach to biodiversity.
Speaker Change: So ladies and gentlemen.
Speaker Change: To wrap up my presentation today.
Speaker Change: I thought it was worth recapping all the reasons why Barrick represents the standouts investment opportunity.
Speaker Change: How you can see there are many great reasons, which differentiate us from our peers.
Speaker Change: Including our unrivaled reserve replacement track record.
Speaker Change: High quality asset portfolio.
Speaker Change: And industry, leading balance sheet, which will ensure we can afford our future growth and.
Speaker Change: And deliver more value to our shareholders.
Speaker Change: Today, we are the most undervalued major gold and copper mining company in the industry.
Speaker Change: But as we deliver on our operational plans and growth projects I've no doubt that will change.
Speaker Change: Included in our portfolio.
Speaker Change: Copper business, which is already a significant contributor.
Speaker Change: And positioned to grow.
Speaker Change: We have all seen the excitement around the latest BHP bid for Anglo American.
Speaker Change: And it's clear that the drive of the spud is Anglo significant copper portfolio.
Speaker Change: You might be interested to know.
Speaker Change: But when we have finished the lamont expansion.
Speaker Change: And the rig codec project construction.
Speaker Change: Copper production will be on a par with anglers copper portfolio today.
Speaker Change: That's certainly not valued in our stock currently.
Speaker Change: On that note I will end my presentation.
Speaker Change: And we would be happy to take questions starting here in Toronto with the audience and before going to those connected through the webcast.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Thank you very much for the presentation, Mark Lawson Winder from Bank of America Securities.
Speaker Change: I wanted to ask two questions. So first would be just about the commentary on the 2024 outlook around the royalty I just wanted to understand if you guys are concerned at a meeting that cash cost guidance in the event that the gold price averages above $2100 per ounce.
Speaker Change: So.
Speaker Change: I mean loss and it's it's all it's all in the models and the plans going forward and as I say to you. If you look at I'll just take.
Speaker Change: I'll step you through it.
Speaker Change: So Nevada is at a place now where we are absolutely.
Speaker Change: Care about all cost out production challenges and opportunities.
Speaker Change: Where are you working on flattening that structure and getting our ownership at the mine site for those that have visited.
Speaker Change: Two L bonds recently.
Speaker Change: And the Big driver, if you look at it and calling us.
Speaker Change: You know slightly softer as per the overall grade that we forecast for this year, it's slightly softer.
Speaker Change: Quarter on call and because of the grade but.
Speaker Change: A bigger throughput so we manage to get gold.
Speaker Change: Gold production, but the grade starts lifting up and and so we have an opportunity to drive down the costs and so that's that's a big driver there are two big drivers in Nevada that one.
Speaker Change: And turquoise Ridge and turquoise Ridge is all about backhaul and making sure that the infrastructure to support out that full because turquoise ridge is a high grade bond low cost.
Speaker Change: But it's a G O Tex is challenging so you've got to manage.
Speaker Change: The extraction with backhaul and we needed to really put some more more redundancy into our back full infrastructure to make sure. We can meet our plan. So that's that's what we did at the same time, we went down for a big pad maintenance on this age mill.
Speaker Change: And so those two drivers are the ones that catch us up on the guidance and bring the cost out because.
Speaker Change: They all the turquoise ridge is.
Speaker Change: More tons higher grade and so there's call it for different reasons.
Speaker Change: That's help you as you know that's the best way to deal with cost.
Speaker Change: On a cost per ounce base I would point out that the team has been really focused.
Speaker Change: You know I've always ready.
Speaker Change: Been focused on is that as the unit cost per tonne.
Speaker Change: So we're much more comfortable that we're on top of that game on a unit cost the topic in Nevada, which is really the thing that ultimately drives the overall cost per ounce.
Speaker Change: In Latin America.
Speaker Change: And Asia Pacific are the key is valid era.
Speaker Change: And again.
Speaker Change: We've now yeah.
Speaker Change: We we we would've made a guidance last year, if valor there I had got a ramp up rock, but we had the conveyor belt infrastructure collapse.
Speaker Change: Sorry PV.
Speaker Change: And what I said last time, we spoke because that's it that's the engineering challenge.
Speaker Change: Which we've got actually address now we've rebuilt that commission that it stops. So now we are ramping up the Titans, which you saw and with that comes the fine tuning of the.
Speaker Change: Of the floatation circuits, and we need the full throughput to be able to get that flotation circuit finely tuned that that is the that's really the driver of the overall cost because it picks up the recovery the grades there it's not.
Speaker Change: High grade mine, but the concentration the floatation concentrates the grade.
Speaker Change: And.
Speaker Change: And PV is a low cost.
Speaker Change: Cost produce a naturally so because a lot of this the feed we are using is stockpiled at radius really month.
Speaker Change: So that's the other driver and then the final driver was Kibali and again, that's a mine plan driven process. If you look at the run rates in the other bonds were in good shape.
Speaker Change: But kibali, we had to do that was pushed back on the two pets because kibali is.
Speaker Change: It's always relied on the flexibility that the open pits give to utilize the excess throughput capacity at the plant and we needed to get those pits open.
Speaker Change: So that impacted the production.
Speaker Change:
Speaker Change: For quarter, one and.
Speaker Change: Quota to Theres, a big lift in and both grade and throughput.
Speaker Change: And so and then we were at the run rate on the production profile of Lula's U.
Speaker Change: It's got to be more of the same for the next three quarters.
Speaker Change: The other one is north Mara again, we've we've introduced open pits into North Florida. As you know we spoke about it last last year a couple of times.
Speaker Change: You've got the underground all working and it's about optimizing that and and again there was some schedule.
Speaker Change:
Speaker Change: Work to be done in north Mara which impacted.
Speaker Change: On and we again, we'll see.
Speaker Change: We'll pick up in grade.
Speaker Change: This quarter too and then quite a big pickup in grade going.
Speaker Change: On the back half off.
Speaker Change: All of this year.
Speaker Change: And really that's so.
Speaker Change: Can you help me.
Speaker Change: Articulating the profile and.
Speaker Change: And so when you know, whereas in the beginning of last year. We we were we had a catch up whereas this year.
Speaker Change: We're on plan.
Speaker Change: That's very clear to us.
Speaker Change: Of course, the one thing that's good about where we are is that we've been diligently working to get that.
Speaker Change:
Speaker Change: That.
Speaker Change: And what's the right word inflection point on the production and it was gonna be last year, but with a P V.
Speaker Change:
Speaker Change: The hesitation, we pushed out into this year.
Speaker Change: But we're really at that stage, so we got it and and and I always say to the team.
Speaker Change: The difference between a good and great company is a great company clinics. They leave a good luck. So when you look at the.
Speaker Change: Expanding margins with a higher gold price.
Speaker Change: We've got that to help us and we've got the the costs coming down.
Speaker Change: And so you know we're in a reasonable position going forward to to expand out.
Speaker Change: Margin, which is what we are what we work for every day.
Speaker Change: So I'll answer your question. It was perfect. Thank you very much and it was hard not to notice in your presentation slides are a major focus on some of the exploration success and the huge amount of exploration targets that you guys have I mean, it is a great part of the story.
Speaker Change: Maybe this is a little early in the year to be asking but I'll try anyway, but what are your thoughts on reserve replacement this year and in gold.
Speaker Change: So I think for the first time.
Speaker Change: Nevada has got a get close if not achieve it tastes oven.
Speaker Change: So Nevada, we've got to a five year plan, so which is a big step forward and we've got some very exciting stuff in there you've got stuff that still working you know the extensions to the greater Leavell, Israel. This and that's not all in baked into our plans.
Speaker Change: The new modeling that we've done in turquoise ridge, if that is a duplication all those falls.
Speaker Change: Below the main horizon, which we've.
Speaker Change: Which is in the reserves, that's an exciting development, we haven't quantified it yet, but it's it's significant.
Speaker Change:
Speaker Change: Do you want to add anything else salmon to speak up.
Salmon: Substantial contribution so that I'll do that so and and once we finish the feasibility in Pakistan, It's like 15 million ounces of gold how much.
Speaker Change: 13 million ounces of gold at a whole bundle of copper.
Speaker Change: You know we already show a big.
Speaker Change: A step up in our reserves are going forward.
Speaker Change: And I think you know a new love.
Speaker Change: Nobody they all.
Speaker Change: So I'm just adding the answers they want.
Speaker Change: Mark It's Greg Barnes from TD couple of questions one.
Speaker Change: P V.
Greg Barnes: Got the ramp up slide in terms of tonnes a throughput I think that's what it is without my glasses.
Speaker Change: In terms of grade a worldwide I mean in terms of recovery. When do you think you'd get that optimizes that through the course of the year and by 2025 year at full run rates, they're both on throughput and grade and recovery.
Speaker Change: Yeah, the grade and and in PV is around two point full plateau modest grabbing a half either thought and we blend the.
Speaker Change: The all out of the pit with the stockpile. So that's what we're doing and we concentrate that into the <unk>.
Speaker Change: Into the autoclave, so we and one of the things that we did and the ramp up last year is that just to remind you. We had we we we built this new flow sheet and what it did is it added fuel to the autoclave. So we put the order craves into a higher.
Speaker Change: Temperature regime, and and so we added it.
Speaker Change: Technology Flash.
Speaker Change: Our cooling vessel effectively a flash point, so we could flesh off the heat when it got hot Hot.
Speaker Change: But with the gambling last year, we had to go back to run up on feed on the autoclave. So we so we ended up having in two of our clubs times, having the ability to do both so to take run of mine feed and to take the higher concentrate hot sulfur feed which is much more efficient.
Speaker Change: Because it's at a higher temperature so we've got a much more flexible flow sheet.
Speaker Change: We are now at that stage to your point, Greg running up the throughput we need that throughput to get to that sort of nameplate to be able to optimize the float circuit, we are getting the float up already.
Greg Barnes: That's the recovery.
Greg Barnes: And we've had a.
Speaker Change: Pretty much every expert operational and metallurgical problems.
Speaker Change: From the Barrick group and some outside help just to manage that reagent sweep because that's the trick.
Speaker Change: We've we've done all the test work we test all the time, we are comfortable with the targets. We've just got a subtle the throughput run rate and that's and that's what you see in the in the slide is that during that goes up there's still a little bit of a dynamic in the.
Speaker Change: Feet, but we're getting there.
Speaker Change: Yeah.
Speaker Change: The second question is around Molly.
Speaker Change: How far apart are you because I know the government has approached you with you with new demands is is this a wide gap or is that something you can they can resolve very quickly or is this going to be a situation that drags on for some time so.
Speaker Change: I think there's obviously a lot of trial and and Sebastian Bach, who runs Africa Middle East is a bit more.
Speaker Change: So we spent a lot of time engaging and what happened was like any sort.
Speaker Change: Sort of revolution embedded comments, because it was effectively.
Speaker Change: A very uncomfortable situation between the population and the civilian government which was.
Speaker Change: Less than sort of.
Speaker Change: Just two.
Speaker Change: To say it politely.
Speaker Change: And so it drove this change as we've seen before and body.
Speaker Change: And so immediately that the the transitional government, which was formed headed by the junta, who was looking for ways to get more out of the mining industry because that's the only.
Speaker Change: Leave it to poll, so they did a audit which.
Speaker Change: Which again, we supported win win never shot of supporting orders.
Speaker Change: But the objective of that audit initially was to try and find fault rather than look for.
Speaker Change: Opportunities to build a better industry, which is what we all agreed we would do including the the people in and authority.
Speaker Change: While it took them a long time to release that report, which we have now so we've been able to respond to it.
Speaker Change: And sit down with the Ministry of Finance at this stage and more recently.
Speaker Change: As a minister of bonds that is engaging with us. So that's the way, we all with the engagement and.
Speaker Change: And we have Oh, just to try and explain marlies.
Speaker Change: Government.
Speaker Change: Oh goodness are largely intact.
Speaker Change: And then you've got the junta with it sort of executive that they've appointed over over.
Speaker Change: <unk>.
Speaker Change: <unk> that the the normal organs of government in Mali has quite a bureaucratic.
Speaker Change: Structure, a bureaucratic government.
Speaker Change: And we know all the people and we've got to know the new.
Speaker Change: People in PA.
Speaker Change: And so some so modern natural reaction is.
Speaker Change: If you're coming up with.
Speaker Change: Claims you should have a muddle a basis on which it is raised.
Speaker Change: And and.
Speaker Change: So you should share it with us and of course, we've got our bottles. So we can put the two together and we can work out who's right and who's wrong oil, where it is and and.
Speaker Change: And find a way forward and as you know ive always prefer to engage in that I've already had that conversation.
Speaker Change: Should we be looking to.
Speaker Change: Find a solution together or should we be farting, because we can go to arbitration.
Speaker Change: And in and get a competent authority again as we've done in the past and body.
Speaker Change: And both parties agree it's much more constructive to engage.
Speaker Change: So that's the way, we are and and the 'twenty to 'twenty three mining code, which has been approved now and we're waiting for the regulations.
Speaker Change: Specifically.
Speaker Change: <unk> provides full.
Speaker Change:
Speaker Change: Hey.
Speaker Change: Old order rot to coin a phrase.
Speaker Change: To accept the 'twenty two 'twenty three code when the permits come.
Speaker Change: Come up for renewal.
Speaker Change: We haven't come up for renewal, we've got two different permits that quite far apart as far as Tom has got.
Speaker Change: But again like we've done in all our countries, we would prefer to debate it and we did it with the activity of the civilian government beforehand.
Speaker Change: And engage I head up top and we are and and and our position is where we find good reason for us to be able to improve our you know things.
Speaker Change: Things like that we're never in a 1991 cut because the current convention is not a it's it's.
Speaker Change: It's morphed from the 91 cut because we've accepted changes as we go in and so that's the debate.
Speaker Change: Of course, we are dealing with people that are not particularly.
Speaker Change: Our competence in the mining industry.
Speaker Change: So and at argument is be careful you don't compromise the benefits to Bali.
Speaker Change: By taking too much and eroding the value of the ore bodies that we've defined and it's a complicated debates and for me to say, it's going to be easy look we've had some very engaging conversations in Bali.
Speaker Change: Ross.
Speaker Change: 28, yes.
Speaker Change: And that's where we are.
Speaker Change: So and but one thing I can tell you is that.
Speaker Change: In the the we've challenged the authority about these rumors.
Speaker Change: And they have very clearly said to us in writing that they have no intention of.
Speaker Change: Expropriated that's it so yeah, that's and that's all I can tell you that's about it but it is dynamic it is that very stressed economy.
Speaker Change: We are dealing with the all the five of the G. Seven countries have full embassies or in the country everyone's concerned about taking this this country forward.
Speaker Change: Particularly the western a palace.
Speaker Change: And and and definitely the the Bodleian authorities are you know are clear that they want to do something that's good for <unk>.
Speaker Change: Bali and not trying to sort of take valliant.
Speaker Change: Well, that's certainly what they've told me correctly.
Speaker Change: No I'm, sorry, I can't give you more granularity, but I'm actually as I, usually do I'm, just giving you the lay of the land thanks, Mark I'll hand it over.
Speaker Change: Hey, Mark it's Jackie prices landscape email and maybe just to dig into that a little bit more if you could talk about the government in Mali, and the stability and I'm just not familiar with the the structure of the military junta like how how stable is that and do you expect any kind of change to the structure of that government overtime.
Speaker Change: Well I think you're asking me to say something that I'm not prepared to say so yeah. This is the third.
Speaker Change: Military leadership the countries had a the.
Speaker Change: The one was very short lived.
Speaker Change: The overall intention and and by its very self definition, that's defined itself as a transitional government.
Speaker Change: The intention is moving to that two two to reintroduce normal civilian government going forward and as you know there's a lot of stress in that region, we've seen a J.
Speaker Change: <unk> moved to a military government southern as Guinea well.
Speaker Change: Yeah, they're big investments going on and I I don't know bought so that whole region is.
Speaker Change: Is is it's a challenging environment and and the the enemy as office the radical Muslim movement in the Sahil. So yeah. There's a it's very complicated and none of them are particularly in doubt apart from.
Speaker Change: From Guinea.
Speaker Change: Sorry, I didn't mean to try and catch on something Hum on another topic can you maybe talk about pork right and how old the startup is going there just given the mine has been been down for a while.
Speaker Change: J.
Speaker Change: Surprisingly well.
Speaker Change: So, it's but sometimes that's running in the dark.
Speaker Change: Particularly though what next challenge you Gotta get but.
J: Since we since we moved to the official startup and then we engaged with the Hella province on restarting the the guess.
J: Pods are power stations are charting the next door province, redirecting the pylons that carry the pass through to them on we've gotten all that we've commissioned the generation facility and were feeding them on so you know and we are ramping up and we did a lot of.
J: Pre work on and ramping up but so far it's going well. So far we are ahead of that.
Speaker Change: Great. Thank you very much.
Speaker Change: Mark This is Ralph <unk> from eight capital I'm, just wondering as you move to this feasibility.
Ralph: Feasibility study at P V coming in Q3 is a lot of that going to be sort of recalibration and retooling of the equipment. That's happened over the past few months and can you talk a little bit about some of the tailings facility management changes that have been going on and that are going to go into that study.
Speaker Change: So as far as the expansion of the processing facility its done.
Speaker Change: With a feasibility I'm, referring to is for the tailings position, we've we've got to put it on.
Speaker Change: On the back of the pre feasibility and it'll be finalized with the feasibility final feasibility study and it's all about the CIT did geotechnical test work on the on the wall and making sure that you know the design is as per rig.
Speaker Change: Quiet in a seismically active a region as well.
Speaker Change: Web T V is and of course, we have the the original tailings facility, which was equally well designed as a reference.
Speaker Change: In the meantime, we all are we have so to achieve that pre feasibility we did all of consultations and we've we've way down the road on engagement with the community on relocation. We I was there just a few weeks ago. We all are busy.
Speaker Change: Our building the new.
Speaker Change: So they're all substantial town, so I mean, they're all particularly the impressive towns.
Speaker Change: And then we'll start the relocation.
Speaker Change: Is some of the Reed rich first relocations will happen. This year. So we are progressing.
Speaker Change: We have no reason to believe that we will not complete the feasibility study and we are progressing in all its all the engagements and the social plans and all that sort of stuff as well as the technical.
Speaker Change: Investigation to confirm the final design of the actual retaining infrastructure.
Speaker Change: And then secondly can you just talk about delivering the pre feasibility study at four ml and how the newmont gaucher patients discussions of bringing that into N. G. M. Would then kind of follow on from that so you know the right now with the and I must say, it's worth just reinforcing.
Speaker Change: I don't think people appreciate the importance of permitting.
Speaker Change: Gold Rush and I mean, the team did an excellent job when you think of where we started the process in 2018.
Speaker Change: And we completed it in 2023 effectively.
Speaker Change: So it's a it's a particularly good piece of work.
Speaker Change: All the consults and everything as you know, it's not easy to permit body.
Speaker Change: In United States, and we have the support of both sides of the aisle from Senators and Congress people are the that's the federal Senate and Congress.
Speaker Change: Out of Nevada, as well as the Nevada Governor.
Speaker Change: And and the legislature in Nevada, So it was a and I we cut the ribbon.
Speaker Change: With the governor of the state last week.
Speaker Change: Officially opened.
Speaker Change: Full vial as an extension of that but a different style of mineralization that you're moving the classic Carlin style mineralization into a made up more photos much more brittle rock. So you get a big branches, which which have been the two.
Speaker Change: The heart of some of the famous Super high grades and calling over the years and so you get much bigger size.
Speaker Change: Uh huh ore bodies and at a better grade.
Speaker Change: And so.
Speaker Change: Under the JV joint venture, where we all are.
Speaker Change: If we complete a feasibility study that proves viability.
Speaker Change: You can put it to newmont.
Speaker Change: And Theres, a formula and as soon as we passed the full tau in the Formula we put it.
Speaker Change: And there's a process of getting calculating a market value so not an NPV, but a market value.
Speaker Change: And also and once that is done newmont are obliged to.
Speaker Change: To either buy their share in.
Speaker Change: And cash and reimburse us on all the costs that has taken us to get there or diluted that's the option.
Speaker Change: And again as you know what I mean, I've always been one that engages them. Because this is a really a real asset and we have a good relationship with newmont and Nevada, We've worked well together as a partnership and so we haven't we are we are open with the conversation and the.
Speaker Change: Progress with our partners, where we haven't agreed sorry I'm out of the.
Speaker Change: So we haven't agreed.
Speaker Change: On a specific way forward.
Speaker Change: But we have agreed that we will have at the appropriate time, a conversation to to investigate options because it's in everyone's oh interest to do that so that's and and Newmont has some excluded ground as well under the because if you remember this was a hostile and.
Speaker Change: Gage went.
Speaker Change: And we had agreed that we would value the deal on the basis of the market.
Speaker Change: And there were some assets lack full vial that wasn't valued by the market and deciding when they saw it so we've got some.
Speaker Change: Lower grade options that are sitting in the.
Speaker Change: Excluded assets, but and as you know in the fullness of time and mining he's a real assets that come into play with a rising oil price.
Speaker Change: In terms of before moat do you have a permit or do you have to start like gold rush or the purpose of it is a it's a there will be some permitting but.
Speaker Change: Gold rush helps in that permitting because of the infrastructure we can access.
Speaker Change: Are they is it underground mine you can access it from already permitted.
Speaker Change: Positions and of course, we have the under the joint venture agreement. We can also use.
Speaker Change: The installed Nevada infrastructure so.
Speaker Change: And right now we need to drill it out.
Speaker Change: So what are we doing an end and at the moment is Simon's got is we've got a focused barrick team are looking at it infrastructure layout drilling a number of holes from surface about 42 million dollar project for this year to be able to scope, the project and and and get.
Speaker Change: I hate around what it's got in tile to get a free pre feasibility study that.
Speaker Change: That's what we do.
Speaker Change: And in terms of point of view.
Speaker Change: Besides what.
Speaker Change: You know.
Speaker Change: Is there any other problem that we we we might have or is everything good to go.
Speaker Change: No. It's just an issue of ramping it up.
Speaker Change: How long it will be to the body of industry.
Speaker Change: [laughter] that is perfect.
Speaker Change: But as we stand today I mean, we said set out to put this expansion in back in 2019, when we would have closed the bond in 2021.
Speaker Change: And and and against all opposition.
Speaker Change: Oh that we've done that and we're busy rolling that out so.
Speaker Change: To give you an idea up until 'twenty 'twenty.
Speaker Change: The average contribution.
Speaker Change: That probably vehicle made to the corporate tax of Dominican Republic.
Speaker Change: It was 18%.
Speaker Change: So we dipped.
Speaker Change: In the last two years, because we had to manage with stockpiles and we didn't have access to the expanded processing plant, but now that we have.
Speaker Change: And we drive that cost down and back above 800000 ounces for a very long time, we go back to that very privileged.
Speaker Change: Heavy contribution to the Dominican Republic, and I would add that P V.
Speaker Change: Is the very foundation of the power infrastructure for the whole country.
Speaker Change: And and and a big taxpayer and a big employer, it's changed the whole province to province in which.
Speaker Change: PV is located so it is a very big and and this construction when we did the big construction expansion.
Speaker Change: What we did is we had to bring in external Ah partners, but we also partner does external partners with local business partner. So we already did support the economy during the whole covered period as well. So we both have a very strong license to operate in that.
Speaker Change: In that country.
Speaker Change: Okay.
Speaker Change: That's.
Speaker Change: So you can remove to the.
Speaker Change: The telephone.
Speaker Change: Participants please.
Speaker Change: Certainly.
Speaker Change: To join the question queue. You May Press Star then one on your telephone keypad, you will hear a tone acknowledging your request.
Speaker Change: Using a speakerphone please pick up your handset before pressing any Keith David.
Speaker Change: Try a question. Please press Star then two.
Speaker Change: First question comes from Daniel Major UBS. Please go ahead.
Daniel Major: Hi, Mark can you hear me, Okay, Yeah perfectly thing study.
Daniel Major: Hey, Thanks, Yeah couple of questions, Yes, the first one in such a high level and obviously M&A.
Daniel Major: Topic in the sector at the moment and some.
Daniel Major: One of the discussions around valuation.
Daniel Major: Comes around complexity of portfolios lots of asset lots of minority interests.
Daniel Major: Good gold price environment, you're looking at the portfolio and thinking of any assets you could use to streamline and recycle that capital into our expansion projects.
Daniel Major: So we have Oh, we have a couple that you could argue all non call.
Daniel Major: Tongue lawn as one.
Daniel Major: The others are strategic are in the form of handler and we've put a lot of effort into repositioning hemlo and you'll see that in right now it's an important component of our business because it's the only assets in Canada and whilst we all investing heavily in Canada, we were we.
Daniel Major: We don't think its wise for us to have.
Daniel Major: To step away from Canada, we want to grow our Canadian footprint profitably.
Daniel Major:
Daniel Major: The the valid there as it is managed by Antofagasta, but again I mean, sorry, the Zelda Viasat does manage bar.
Daniel Major: And if Augusta and again you know that.
Daniel Major: Price is important our copper strategy is important so you know at this stage that's out all that's where we are and we've got some.
Daniel Major: Our work in progress in Chile, which we're quite excited about.
Daniel Major: And that set the rest all tier one assets.
Daniel Major:
Daniel Major: Switching snugly into our strategy so.
Daniel Major: We will at the appropriate time as we've demonstrated but I think the key that out.
Daniel Major: Answer you with us at the time about transactions the joint venture between the the the consolidation of Barrick and Randgold as one company, we sold a noncore asset.
Daniel Major: When we when we looked at it additional opportunities and the Nevada joint venture we dealt with the challenging assets in the form of long Canyon and the things that were disappointing as part of the the consolidation of those joint ventures, and so we did.
Daniel Major: You know some people are still dragging.
Daniel Major: It's with them after a big premium transactions, we don't have that problem.
Daniel Major: So.
Dan: So Dan.
Daniel Major: Dan.
Daniel Major: I see no. That's my answer them right now, we've got really fantastic World class assets as I say that.
Daniel Major: His intention.
Daniel Major: A reference point. This is just look at what Bhp's and suggested they could pay for.
Daniel Major: Anglo American's copper assets arguably there's a bit of other stuff with it but it's still a big tag and and and we've got it organically.
Daniel Major: So that's our focus and we've got a gross sets in Nevada and surrounds I rest of our portfolio, particularly P V.
Daniel Major: And then it's the exploration group that's starting to.
Daniel Major: In the major.
Daniel Major: <unk> gold copper regions of the world and and and we believe that's the.
Daniel Major: That's the future of Barrick.
Daniel Major: Right now.
Speaker Change: Great. Thanks, and then just one other if I may.
Daniel Major: We.
Daniel Major: It looks like.
Daniel Major: In Reckitt <expletive>.
Daniel Major: There's a deal approaching on the other side of the 50% does that impact your funding and.
Daniel Major: Kind of how you're looking at financing the project.
Speaker Change: No not at all.
Speaker Change: Okay, great. Thanks.
Speaker Change: The next question comes from Tanya the disconnect with Scotiabank. Please go ahead.
Tanya: Oh, great. Good morning, Thank you so much.
Tanya: Okay.
Speaker Change: Yes.
Speaker Change: Mike.
Tanya: Uh huh.
Tanya: Hum.
Tanya: Yeah.
Tanya: Oh.
Tanya: Going on in the World.
Tanya: Are there any and we should know about with respect to changes in the royalty.
Tanya: Anything else.
Tanya: Uh huh.
Tanya: So every indication at the moment is that the president the current president it'll be it will have a second time.
Tanya: He he meant it when he was elected he wasn't expecting COVID-19. He did he is probably as a leader goes he probably manage that process better than any any leader in any country that we have investments and and and and he's been at you know where you stand a very good shape.
Tanya: He's dealt with some of the challenges that he's had the next door neighbor challenge on top of that.
Tanya: It's been a challenge, but I mean, we're not expecting the opinion polls that at least indicate that he's more than likely to be the successful candidate and if he is we.
Tanya: Yeah, he's he's he's shown.
Tanya: Highlights of the importance of investment in that our economy, and and I don't believe there's gotta be but it's certainly not going to be any aggressive engagement with the private sector I think theres going to be real focus to it to bolt it the private sector going forward.
Tanya: Okay.
Tanya: Yeah.
Speaker Change: Thank you.
Tanya: Yes.
Tanya: Yeah.
Tanya: You may begin.
Tanya: Sure.
Tanya: Yes.
Tanya: Remind me.
Tanya: Sure.
Tanya: Yeah.
Tanya: Okay.
Tanya: Okay.
Tanya: Thank you.
Tanya: Yeah.
Tanya: Yeah.
Tanya: You push that out.
Tanya: Is that would that be.
Tanya: Yeah.
Tanya: Yes.
Tanya: Okay.
Tanya: So telling you there are really two aspects to this the first is obviously.
Tanya: That data has previously been pushed out preview you know.
Tanya: From its original date, so that can always be negotiated but more importantly, actually when we installed the the.
Tanya: Electricity line from <unk>.
Tanya: From Chile across we actually started exporting power.
Tanya: And that for US is important because it helps us with that that refund because it affects levy is it meets the requirements for full production in a sense. So so that is actually really sort of dissipated the risk associated with that.
Tanya: Okay.
Speaker Change: Final question.
Speaker Change: For myself.
Speaker Change: Thank you Mark.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: [laughter] for Nucor.
Speaker Change: Kathy.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Hi.
Speaker Change: Yeah.
Speaker Change: Hi.
Speaker Change: With a strong Q4.
Speaker Change: Yes.
Speaker Change: Uh huh.
Speaker Change: Yes, Tanya that's a that's a pretty good read on it maybe its 46 54 or something like that but.
Speaker Change: It's it's it's there or thereabouts, it's definitely a a as we've said it all in our guidance, it's gonna be increasing production through the a strong finish to the year. So yeah. That's it that's a fair read.
Speaker Change: Wow.
Speaker Change: Okay Cup Cup is a little more second half weighted them relative to the Gulf.
Speaker Change: Okay.
Speaker Change: Sorry.
Speaker Change: No.
Speaker Change: Inflation pressures.
Speaker Change: Yeah.
Speaker Change: Nathan wind down.
Speaker Change: Yes.
Speaker Change: Wow.
Speaker Change: <unk>.
Speaker Change: Hi.
Speaker Change: Yeah, Yeah, that's relatively consistent.
Speaker Change: I wouldn't say, we're seeing any continuing inflation, it's more a case of some of those key commodities.
Speaker Change: Like you mentioned, the steel bowls cyanide and explosives, where we've been trying to wrestle those prices back down to.
Speaker Change: 2021 process. So in a lot of other areas, we all back down to 2021 prices, but there are a few of those that have.
Speaker Change: Remain sticky and and we need to bring them down its not necessarily across the whole group tends to be more regional so north America, we have more pressure than we do in the other parts of the business and then as you say labor is not the same pressure that they once a.
Speaker Change: A year or two ago.
Speaker Change: Okay, great. Thank you so much.
Speaker Change: Thanks.
Speaker Change: My question.
Speaker Change: Yeah, I think just one thing on the labor North Americas as you know we've invested heavily in.
Speaker Change: And improving the skills of our.
Speaker Change: Work force in Nevada, and we starting to see those signs and so the opportunity is to lift the it's an expensive commodity are absolutely critical asset, but and and now approaches which and the team has done exceptionally well and you.
Speaker Change: Driving our the skill base, so that we can improve the efficiencies and offset the cost.
Speaker Change: So that's been our focus over the last couple of years.
Speaker Change: Okay next.
Speaker Change: The next question comes from Anita Soni.
Anita Soni: Please go ahead.
Anita Soni: Good morning, Martin so.
Anita Soni: So a few questions mostly following on what tax Jaime was asking for firstly Romana grade.
Anita Soni: That were processed so much lower than what was mined are you pulling from stockpiles and when will that.
Speaker Change: I'll, let I'll, let Simon answer that it's just a function of where we are in the pit the with just outside the high grade shoots and so everywhere with the stripping at the moment, we will open up the higher grade later in the year.
Simon: Yeah, I guess the question was why not see that.
Speaker Change: Direct cause I know I thought I saw some mine grades for much higher than that than me.
Speaker Change: All right.
Simon: No I think the second just to comment the second hard off of the grade Tucson, Lynn's point because of the schedule of mining.
Simon: Lift up and and remember we are building.
Simon: The base for a big expansion and so we don't want to end up sort of diving down on the ore body, we need to manage this as a long term investment so.
Simon: Yeah.
Simon: And we'll manage that as we go and including.
Simon: Growing some of our stockpiles, but.
Simon: Yeah. That's that's what it is it's gonna be it back.
Simon: Our weighted.
Speaker Change: I'm on a particularly and that's what drives the point that Graham.
Simon: <unk> pointed out there's a little more on.
Simon: Yeah, much stronger back half of the in the copper side of our business.
Simon: Okay. So then moving to Phoebe.
Phoebe: The disclosure around the AR about the tons that would be expected over the course of the year can you give a little bit of color on what kind of grade is it pretty steady grades at two three gram ore.
Phoebe: That rise or fall over the course of the year.
Simon: They are too we've got a get.
Simon: Again in the second half of the and and and and you know that this is so the average grade for the is about just over two point full.
Simon: So it puts it in perspective.
Simon: Great.
Simon: And then another very detailed question.
Simon: Rich you mentioned the backfill situation.
Simon: Is that and how long will that take them too.
Rich: Right I mean, it's obviously impacting the mining cost underground mine in constant and I'm reading through maybe the autoclave process cost as well, but I'm just wondering when those costs will start to trend down.
Rich: So we expect to be back up at plan at the routing plan at the end of quarter three.
Rich: But you know we're working with now we were ahead of the plan as far as Black backfill goes catching up and and and we will get close but not quite on.
Simon: Budgets by the middle of the corridor, three will who will take us to that point.
Speaker Change: Okay, and then lastly, a similar question on Carlin.
Speaker Change: So what can we expect in terms of.
Speaker Change: Okay, great increases over the course of the year I think that's another one where you have your grades were low in the first quarter and will rebound over the course of the year.
Speaker Change: The grades are going to be.
Speaker Change: And so they all are in the first quarter and I and I'll go I'll take you to those so we're looking at a grade around 4.3.
Speaker Change: For the but it goes.
Speaker Change: Again this is a very big mine.
Speaker Change: So next call there'll be better grades and then I think the the following quarters again, good grade and then we have a back to sort of.
Speaker Change:
Speaker Change: Full grams on the corner fall, so its a little bit bumpy, but on average you know.
Speaker Change: There's a there's there's 10 to 20000 ounces different between H, one and H two.
Speaker Change: And in a nod.
Speaker Change: What was with.
Speaker Change: Collins, a big Beast. It's you know you try and keep it as close to the running average as you can and that's what it looks like on the profile.
Speaker Change: Alright, and then last and final question.
Speaker Change: The other mill maintenance shutdowns that we should be aware of over the course of the year.
Speaker Change: Yeah, we got the bank shutdown with the gold quarry roaster.
Speaker Change: In July.
Speaker Change: Which which is we tie in the expansion and so post that.
Speaker Change: We will ramp up and we're forecasting this year for the backend of the so the last half and and one quarter will be up there around somewhere between 15, and 20% higher throughput and gold quarry rise to depending on how quick.
Speaker Change: We ramp it up.
Speaker Change: Okay. So that's a favorite round, it's a big shut down we were putting in we upgrading the convert that we do a whole lot of extra stuff, that's really being them.
Speaker Change: Impacting.
Speaker Change:
Speaker Change: Fishing season, and we expect to bring the cost down substantially on the back of that is to say expansion, both because you've got more throughput, but more importantly, because we've actually addressed some of the challenges within the.
Speaker Change: Ancillary equipment are in that roster.
Speaker Change: Alright. Thank you that's it from my questions. Thanks for taking them.
Speaker Change: Anita.
Speaker Change: The next question comes from Joshua Gale with Resi Associates. Please go ahead.
Joshua Mark Wolfson: Thank you.
Joshua Mark Wolfson: Good afternoon, Mark Hello, Josh.
Joshua Mark Wolfson: Can you hear me yeah, I can tell you perfectly thank you.
Joshua Mark Wolfson: Terrific I was wondering if you could comment on the Don Juan.
Joshua Mark Wolfson: Deposit in Alaska, I heard a presentation by Thomas Kaplan talking about the very high grades there.
Joshua Mark Wolfson: It's just an amazing resource and asset and you haven't really said much about that and does the higher gold price.
Joshua Mark Wolfson: Accelerate that potential in your mind.
Joshua Mark Wolfson: And then the second quick question is you mentioned that you think Barrick is the.
Joshua Mark Wolfson: Cheapest gold.
Joshua Mark Wolfson: Most undervalued gold company in the World and I was wondering if you could point to a metric or two that you look at to reach that conclusion that you could share with us.
Speaker Change: Sure. So if you look at consensus on N. A V multiples, where I know at one time so that.
Speaker Change: On who you follow the it's around anywhere between point date, not end point not in three times, Ed I V and of course as the gold price goes above the consensus prices as the as with the copper and copper is the real driver as well is that.
Speaker Change: Got a expense so that's an easy answer on Darden and.
Speaker Change: You know, we've always recognized that as Tom does a very large resource. It is refractory. So it's a it's a calling and varied geographic little challenged area.
Speaker Change: Not geopolitical the geographical.
Speaker Change: Is that its a call it a deposit at 2.4 somewhere around the <unk> grams a tonne.
Speaker Change: Infrastructure is the challenge and getting it to to deliver a return that meets our investment criteria has been our focus and we've been working hand in glove with another golf team are already trying to sweat every line item in the capital schedule.
Speaker Change: And and Youll final note of course, you know rising gold prices float these types of votes.
Speaker Change: Yeah, they're there.
Speaker Change: And there will be a time when another gold would would be an investment. So that's our view, it's an inventory issue.
Speaker Change: As part of a global inventory, it's it's a valuable asset in our inventory and AR.
Speaker Change: And so you know and we've never.
Speaker Change: Ted anything otherwise.
Speaker Change: Yep.
Speaker Change: No you should never goes, but you don't I mean Garland.
Speaker Change: Yeah.
Speaker Change: Yeah, but nothing that Nova cold as it was the other part of it.
Speaker Change: Absolutely, but its yeah, you're referring to don't run it will be developed.
Speaker Change: And it is a valuable asset.
Speaker Change: Great, but not any time soon this is way out in the future.
Speaker Change: You try and predict the gold price.
Speaker Change: No.
Speaker Change: This is up 15, it's up 30 nearly 30.
Speaker Change: In the last 18 months.
Speaker Change: Yeah.
Speaker Change: It just didn't work at these levels if it if it stay if the gold price stays here.
Speaker Change: Well I think that's starting to get close yeah.
Speaker Change: Terrific. Thank you I appreciate all your hard work and commitment.
Speaker Change: Thank you.
Speaker Change: The next question comes from John Tumazos, with John Tumazos, very independent research. Please go ahead.
John Thornton: Thank you very much.
Speaker Change: Similar.
John Thornton: You have three or four potential projects in Chile.
John Thornton: And copper has rebounded along with school.
John Thornton: It's where it was in Alaska, where it was.
John Thornton: Before mile endorsed you know their extensions at Cortez in Nevada gold.
John Thornton: Okay.
John Thornton: These projects.
John Thornton: Do you assume that as discrete costs will rise as much as the gold and copper prices or.
Speaker Change: Well, you're asking me to it.
John Thornton: Three quarters of the incremental revenue comes homes as a project or.
John Thornton: Oh, how are you.
John Thornton: Evaluate.
John Thornton: These economics in a rising gold and copper price environment Mark.
Speaker Change: So John.
John Thornton: Let me maybe answer that in and sort of presenting a scenario I go back to Trey.
John Thornton: 'twenty 'twenty so.
John Thornton: 2008, 2006 was a run up in the gold price from 450. It was in 2005 two.
John Thornton: About $1000 in 2000 and not in <unk>.
John Thornton: $800 in 2011.
John Thornton: And if you recall.
John Thornton: Very similar to the last 24 months you've seen.
John Thornton: The market has gotten some big deals on a rapidly rising gold price.
John Thornton: And.
John Thornton: And paid significant premium.
John Thornton: And that's what happened then it's the difference so as everyone did it because they were more majors than they are today.
John Thornton: And then they're in the gold price came off and there was inflation.
John Thornton: From 2005 from the time that China joined the global economy. It drove that inflation you know the oil price went up everything went up but the commodity prices.
John Thornton: Routinely outperformed so it wasn't like we see now where were.
John Thornton: Where we had inflation without the rising gold price in a big fill up at the as we've witnessed over the last 18 months. So.
John Thornton: And the question is.
John Thornton: And sure they they they that marginality that that you can make money on the margin as it is a real is always traditionally been an attraction in the gold industry, but you know you're the expert.
John Thornton: The problem with the mining industry has taken that margin with the gold price to keep its shareholders, believing that they're adding reserves, but they havent ready so.
John Thornton: That's a challenge for our industry, it's equally it's an equal challenge for the copper industry.
John Thornton: And so what we have.
John Thornton: Work to position.
John Thornton: Paragon has a contrarian to that approach and that we focused in on the right assets. We've invested in them and we've made sure that we've replaced adult we bond was the same.
John Thornton:
John Thornton: Same quality AR reserve.
John Thornton: And we do have that marginal flexibility because of our discipline on the 1300 dollar gold. So if you take some of that as its not all of them because a lot of them are constrained geologically within the 1300, Edinburgh, but there are some that have.
John Thornton: Lower grade halos around the 1300 envelop so we take that.
John Thornton: And when there's a high gold price, we'll take that because it comes in at a very similar margin because of the infrastructure. So have you got a thousand dollar margin and.
John Thornton: Are you developing their infrastructure on a 1300 model you can take marginal.
John Thornton: General and our definition not in anyone else's.
John Thornton: Our goals on that basis, and that's good business. So we do that we've done it we did it back in 2011, we pushed back the Lula pets and took a whole pile of.
John Thornton: A high grade low recovery all and.
John Thornton: It was you know in it and we could do that.
John Thornton: So, we do that but and and you know.
John Thornton: Darden and there's a very different asset too.
John Thornton: Falloff.
John Thornton: While as a tier one will clos.
John Thornton: Opportunity and it'll make money in any gold price you can forecast realistically, it's a matter of banking it.
John Thornton: Which we dude again diligently we are not going to take it.
John Thornton: The risk on that.
John Thornton: On the Chile side, you know the copper prices certainly helped on Zelle deval.
John Thornton: The valid there a mine is I think we fixed that.
John Thornton: Rather than got saved by the Gulf crossing a goldmine and it's not a copper mine.
John Thornton: Pascua Lama, we are working on are on them on them.
John Thornton: And a preliminary economic model full full plus glut it's.
John Thornton: It's also really its a gold and silver mine of which there's a big silver stream as you know.
John Thornton:
Speaker Change: Got it.
Speaker Change: We we don't hedge.
Speaker Change: We would have to see.
Speaker Change: It would be have to be covered and we set up a reserve gold price based on input costs, we don't set it against the spot gold price we will exploit.
Speaker Change: If it makes sense, John we'll exploit a high gold price.
Speaker Change: And our mining plans, but we wouldn't change our reserves on that basis. So that's so that so for us all.
Speaker Change: Opportunities for us all the expansion and leave all the whole collyn the.
John Thornton: The expansion in turquoise ridge.
John Thornton: The gold rush ramp up which is already day as an expansion opportunity more complex than in full mile. We got some very exciting upside in kibali and new logo in Qatar P. V is about delivering 20 years any further additions as loss.
John Thornton: Rather than profile and it's yeah.
John Thornton: 802 million ounce producer.
John Thornton:
John Thornton: And then the real excitement is some of our copper plays and our new jurisdictions.
John Thornton: And as we go through this year I'm confident we'll be able to.
John Thornton: Share more with you as we grow that we've we're still consolidating some of the titles in those areas and then.
John Thornton: And then of course, the gold play and and.
John Thornton: You know this the Ah Ah Ah.
John Thornton: A very solid relationships in Zambia in D. C offer us significant opportunities again, which we've you know we are cautiously optimistic we're going to grow those those positions.
Speaker Change: I hope that answers your question.
Speaker Change: Oh, that's great Mark some of your projects have been in over 10 years, and they're rigorously analyzed and engineered by Barrick.
Speaker Change: Yes.
John Thornton: For example.
John Thornton: Poor morale is at the head of the pack or something else is at the head of the pack.
John Thornton: And there's other companies that don't have enough projects and are willing to pay premiums where do you work somebody.
John Thornton: Premium.
John Thornton: One of your projects.
John Thornton: Hey, you're a $1 billion or more.
John Thornton: So we'd be very happy to sell somebody a the assay to if they're going to pay us more than we think it gets worse.
John Thornton: But our business fundamentally is mining.
John Thornton: And as you see if you take Lula, we started at a million ounces. It's now got what seven seven.
John Thornton: Seven 7 million of reserves still today after more than 10 years of money.
John Thornton: 2005, so that 15 22 years of Ani.
John Thornton: So we you know when you're in these tier one jurisdictions, where these big assets that last for a long time and we're in that you know in Nevada.
John Thornton: It is a exciting place when you find assets in Nevada.
John Thornton: Like a formal they all massive assets.
John Thornton: So you know we're not in this game for the short term, it's a long game and it's been good for our shareholders at the time you know I think if you look at the Randgold shareholders, they've done very well out of this deal. If you look at the Parex shareholders, but we've still got some work to do to deliver them.
John Thornton: Value of the others that are still in from back in <unk> and 'twenty, a teen and but we are building a great company with you know are capable of.
John Thornton: Delivering value and we've paid a lot of.
John Thornton: Dividends out and and other capital returns to our shareholders already while we fix that business.
Speaker Change: Thank you.
Speaker Change: There are currently no more questions from the conference call.
Speaker Change: Alright, well. Thank you very much everyone I appreciate the questions and thank you again for those who came.
Speaker Change: To join us on a one on one basis.
Speaker Change: Well as you know always available to take questions going forward, we look forward to talking to you again, and we are having our analyst visit.
Speaker Change: Into our Kibali and Tanzania mine starting on Monday.
Speaker Change: And then we will be releasing the presentations and that on the website.
Speaker Change: Due to follow the trip.
Speaker Change: Virtually and and we're always available to to help you out if you've got any questions. Thanks again.
Speaker Change: This concludes today's event should you have additional questions. Please contact the Barrick Investor Relations Department you may disconnect. Your lines. Thank you for participating and have a pleasant day.
Speaker Change: [music].