Q2 2024 Barrick Gold Corp Earnings Call
Speaker Change: [music]
Operator: John Tumazos, Bob Brackett, Greg Barnes, John Thornton, John Thornton, John Thornton, John Thornton, [inaudible] John Thornton, John Thornton, John Thornton, John Thornton. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Ladies and gentlemen, thank you for standing by. This is the event operator.
Speaker Change: Ladies and gentlemen, thank you for standing by. This is the event operator. Welcome to BEREC's results presentation for the second quarter of 2024.
Operator: Welcome to Barrick's results presentation for the second quarter of 2024. Following today's presentation, a question 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.
Speaker Change: 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.
Mark Bristow: We will also be taking questions from those in the room. As a reminder, this event is being recorded and a replay will be available on Barrick's website later today, August 12th, 2024. I would now like to turn you over to Mark Bristow, President and CEO of Barrick. Please go ahead, sir.
Speaker Change: We will also be taking questions from those in the room. As a reminder, this event is being recorded and a replay will be available on BARRICK's website later today, August 12, 2024.
Mark Bristow: I would now like to turn you 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 those here at the Barrick corporate office and across the globe.
Mark Bristow: Thank you very much and. Very good morning and good afternoon to those here at the Barrick corporate office and across the globe. Welcome to the quarter two results presentation. So it's the halfway mark of 2024. It's gratifying to report that our performance has been picking up as we work, to meet our production guidance for the year. As important as our operations is the progress we are making in advancing our major growth projects. As I will show you during this presentation, a new potential Tier 1 gold mine. 100% owned by Barrick is taking shape in Nevada.
Mark Bristow: Our copper business is on track for a transformative expansion and the enlarged and upgraded Pueblo Viejo is getting into its stride for a new 20 year stretch, as a world-class producer. These mines will be delivering new gold and copper into the market, at a highly opportune time, demonstrating the value of Barrick's long term planning and investment strategy, as well as the enormous upside optionality embedded, in our asset base. This is the customary, cautionary notice regarding forward-looking information, and for those who want to study it further, you'll find it in full on our website. Starting with the group highlight.
Mark Bristow: The safety, financial and operational results for the past quarter all point in the right direction, reflecting a business that is delivering across the board. Rising production and increasing margins provide the foundation for a strong second half, while the financials augur well for our ability to fund our growth and so sustain the delivery of value to our shareholders. Tower is a closer look.
Mark Bristow: Welcome to the quarter two results presentation.
Mark Bristow: So it's a halfway mark of 2024.
Mark Bristow: It's gratifying to report that our performance has been picking up as we work to meet our production guidance for the year.
Mark Bristow: as important as our operations, is the progress we are making in advancing our major growth projects.
Mark Bristow: As I will show you during this presentation, a new potential Tier 1 gold mine, 100% owned by Barrick, is taking shape in Nevada.
Mark Bristow: Our copper business is on track for a transformative expansion and the enlarged and upgraded Pueblo Viejo is getting into its stride for a new 20-year stretch.
Mark Bristow: as a world-class producer.
Mark Bristow: These mines will be delivering new gold and copper into the market at a highly opportune time.
Mark Bristow: demonstrating the value of Barrick's long-term planning and investment strategy as well as the enormous upside optionality embedded in our asset base.
Mark Bristow: to
Speaker Change: This is the customary cautionary notice regarding forward-looking information and for those who want to study it further you'll find it in full on our website.
Mark Bristow: At the financials, particularly significant are the increase in the tributable EBITDA margin to 48 percent and the substantial free cash flow growth. Gold margins were up 39 percent quarter on quarter, while copper margins rose by 124 percent. Adjusted net earnings per share was 68% higher quarter on quarter, and debt net of cash was reduced by 12%, and the share buyback program was restarted and the quarterly dividend maintained at 10 cents per share.
Speaker Change: Starting with the group highlights.
Speaker Change: The safety, financial and operational results for the past quarter all point in the right direction.
Speaker Change: reflecting a business that is delivering across the board.
Speaker Change: Rising production and increasing margins provide the foundation for a strong second half while the financials augur well for our ability to fund our growth and so sustain the delivery of value to our shareholders.
Speaker Change: Now is a closer look.
Speaker Change: At the financials, particularly significant, are the increase in attributable EBITDA margin
Speaker Change: to 48% and a substantial free cash flow growth. Gold margins were up 39% quarter on quarter while copper margins rose by 124%.
Speaker Change: Adjusted net earnings per share were 68% higher quarter-on-quarter and debt net of cash was reduced by 12%.
Speaker Change: And the share buyback program was restarted and the quarterly dividend maintained at $0.10 per share.
Mark Bristow: Operationally... Gold production increased slightly quarter and quarter. A slightly higher cost was a function of higher royalties, but for all intents and purposes, the costs were flat, and dumb, and uh, The drivers of the cost were really set with PV as we ramped it up and then the pushbacks in... in Collin and Cortez. Copper production increased with costs falling thanks to higher grades and mining fleet upgrades.
Speaker Change: operationally
Speaker Change: Gold production increased slightly quarter and quarter. Slightly higher costs were a function of higher royalties, but for all intents and purposes, the costs were flat.
Speaker Change: And, uh.
Speaker Change: The drivers of the costs were really set with PV as we ramped it up and then the pushbacks in...
Speaker Change: in Collin and Cortez.
Speaker Change: Copper production increased with costs falling thanks to higher grades and mining fleet upgrades.
Mark Bristow: And looking ahead, we expect materially higher production from PV, Turquoise Ridge, and Lawana into the second half of the year, to look at our detailed health and safety report. It's very pleasing to show you how that the performance continues to train positively as we pursue our zero harm goal. Our approach to sustainability has always been holistic and embedded in our business. It is a differentiated approach focused on the long term and the understanding that all environmental and social aspects are interconnected and integrated. Our approach is always based on science, and it needs to be measurable.
Speaker Change: And looking ahead, we expect materially higher production from PV, Turquoise Ridge, and La Juana into the second half of the year.
Speaker Change: If you look at our detailed health and safety report
Speaker Change: It's very pleasing to show you how the performance continues to trend positively as we pursue our Zero Harm Goal.
Speaker Change: Our approach to sustainability has always been holistic and embedded in our business.
Speaker Change: It is a differentiated approach focused on the long-term and the understanding that all environmental and social aspects are interconnected and integrated.
Mark Bristow: This is why we developed the industry first sustainability scorecard, to track and disclose our sustainability performance. We also link our targets and reports to the UN Global Compact, and the UN Sustainable Development Goals, or SDGs, which itself calls for an approach to sustainability that resonates, with our strategy. And that is why we have developed and launched our own comprehensive biodiversity assessment tool during the past quarter. It is designed to measure our impacts on nature and inform actionable conservation strategies.
Speaker Change: Our approach is always based on science and it needs to be measurable. This is why we developed the industry-first sustainability scorecard to track and disclose our sustainability performance.
Speaker Change: We also link our targets and reports to the UN Global Compact.
Speaker Change: and the UN Sustainable Development Goals, or SDGs, which itself calls for an approach...
Speaker Change: to sustainability that resonates with our strategy and that is why we have developed and launched our own comprehensive biodiversity assessment tool during the past quarter.
Speaker Change: It is designed to measure our impacts on nature and inform actionable conservation strategies. And in time to come...
Mark Bristow: And in time to come.., targets to measure again, while maintaining a human-focused lens for the development of our host communities in our goal to alleviate poverty. Our integrated approach extends to our climate change strategy, and the addition of 200 megawatts of renewable solar energy at the TS Power Plant in Nevada is another contributor. So we start the operational review as usual in North America, where Nevada Gold Mines hosts three of our Tier 1 mines with another in the making at the adjacent 100% Barrick-owned 4-mile project. Four mile is a particularly exciting prospect.
Speaker Change: targets to measure against.
Speaker Change: while maintaining a human-focused lens for the development of our host communities and our goal to alleviate poverty.
Speaker Change: Our integrated approach extends to our climate change strategy and the addition of 200 megawatts of renewable solar energy at the TS power plant in Nevada is another contributor.
Mark Bristow: The more we learn about it. The more it looks like it could be the largest undeveloped high-grade gold deposit in the world today, directly adjacent to Nevada Gold Mines existing infrastructure in one of the world's best mining jurisdictions. Following the completion of the SAGE autoclave maintenance shutdown in the first quarter, Turquoise Ridge increased in production by 16% while Carlin focused on underground development to improve its operational flexibility to offset the Gold Quarry pit redesign following the pit wall failure in Q1, and Gold Rush continued to ramp up at Cortez. With that, Let's look, take a closer look at four miles, which is adjacent to Gold Rush, but as I said in the previous slide, is 100% owned by Barrick. I'm going to pause here.
Speaker Change: So we start the operational review as usual in North America.
Speaker Change: where Nevada Gold Mines hosts three of our Tier 1 mines with another in the making at the adjacent 100% barrack-owned 4-mile project.
Speaker Change: Four Mile is a particularly exciting prospect.
Speaker Change: The more we learn about it...
Speaker Change: The more it looks like it could be the largest undeveloped high-grade gold deposit in the world today.
Speaker Change: directly adjacent to Nevada Gold Mines existing infrastructure in one of the world's best mining jurisdictions.
Speaker Change: Following the completion of the SAGE autoclave maintenance shutdown in the first quarter
Speaker Change: Turquoise Ridge increased in production.
Speaker Change: by 16% while Carlin focused on underground development to improve its operational flexibility to offset
Speaker Change: the Gold Quarry pit redesign following the pit wall failure in Q1 and Gold Rush continued to ramp up at Cortez.
Speaker Change: With that...
Speaker Change: Let's take a closer look at 4 Mile.
Speaker Change: which is adjacent to Gold Rush but as I said in the previous slide is 100% owned by Barrick.
Mark Bristow: So that you can digest the very significant intersections by the 10 diamond core drill rigs currently on site. You look at these drill rigs, drill intersections, they really remind one of yesteryear, the Goldstrucks, the Carlins, the big discoveries. And, you know, many are in the two ounce per ton category. Really, Formal reminds me of those company-making call-in deposits of the past.
Speaker Change: I'm going to pause here.
Speaker Change: So that you can digest the very significant intersections by the 10 diamond core drill rigs currently on site.
Speaker Change: If you look at these drill rigs, drill intersections, they really remind one of yesteryear. The Goldstrucks, the Carlins, the big discoveries.
Speaker Change: and you know many are in the two ounce per ton category.
Speaker Change: Really, Formal reminds me of those company-making car loan deposits of the past.
Mark Bristow: A world-class project and everything As we shared with you last quarter, we're planning to have an updated mineral resource by the end of the year, when you'll make a decision about the pre-feasibility option.
Speaker Change: a world-class project.
Speaker Change: in every sense.
Speaker Change: As we shared with you last quarter, we're planning to have an updated mineral resource towards the end of the year when we'll make a decision about the pre-feasibility options.
Mark Bristow: That Geologist Dream of Us, In the fullness of time. I believe this asset has the potential to be as valuable to Barrick, as our current stake in Nevada gold mine. And that's before our geologists find more of those carlin elephants that I keep talking about, and that takes me to the 14 million ounce Levo project, which like Gold Rush is developing into another major growth driver, with the potential to double or triple.
Speaker Change: But as I said, this is really one of those assets that geologists dream about.
Speaker Change: In the fullness of time
Speaker Change: I believe this asset has the potential to be as valuable to Barrick as our current stake in Nevada gold mines.
Speaker Change: And that's before our geologists find more of those carlin elephants that I keep talking about.
Speaker Change: And that...
Speaker Change: takes me
Speaker Change: to the 14 million ounce levo project
Speaker Change: which like Gold Rush is developing into another major growth driver with the potential to double or triple
Mark Bristow: Current Reserve. Extending Colin's Life Beyond 2045. And I think this is significant, just to dwell a little bit further on it and when you look at, What we're dealing with today, we did a number of transactions in 2019, 2020. We never paid a premium for any of them.
Speaker Change: Current Reserves, extending Collins' life beyond 2045.
Speaker Change: What we're dealing with today, we did...
Speaker Change: A number of transactions in 2019-2020. We never paid a premium for any of them.
Mark Bristow: Embedded in those transactions are these types of ore bodies. And what we're doing now is bringing them to the fore and working to get them into our production profile. And you'll see more of this as you go.
Speaker Change: Embedded in those transactions are these types of O-Bodies.
Speaker Change: and what we're doing now is bringing them to the fore and working to get them into our production profile and you'll see more of this as you go but just to before I leave North America and Nevada in particular so we've got Gold Rush
Mark Bristow: But just to, before I leave North America and Nevada in particular, so we've got Gold Rush, driving Cortez Complex. We've got the emerging Lievel expansion driving Carlin. And of course, Turquoise Ridge stands on its own as a high cost, low, low, high grade, low cost producer. And really, that is the future of Nevada. And then, and then when you when you see the sort of quality coming out of Four Mile, you've got to believe that there's more opportunities, to make new discoveries in this region, and that's our focus.
Speaker Change: driving Cortez Complex.
Speaker Change: We've got the emerging Leval expansion driving Carlin and of course, Turquoise Ridge stands on its own.
Speaker Change: is a high-cost, low-grade, low-cost.
Speaker Change: producer and really that is the future of Nevada and then and then when you when you see the sort of quality coming out of Four Mile, you've got to believe that there's more opportunities to make new discoveries in this region and that's our focus.
Mark Bristow: Leaving the North Americas, we move now to Latin America and the Asia-Pacific region, where our flagship growth project, the Pueblo Viejo plant expansion and mine extension is up and running again, in Papua New Guinea, the recently restarted, Paul Gramein is ramping up to commercial production, while in Pakistan the Rekordec Feasibility Study is on track for completion this year. Work has already started on the construction of what we term early work.
Speaker Change: So, leaving the North Americas, we move now to Latin America and the Asia-Pacific region.
Speaker Change: where our flagship growth project, the Pueblo Viejo plant expansion and mine extension is up and running again.
Speaker Change: In Papua New Guinea, the recently
Speaker Change: restarted, Paul Gramein is ramping up to commercial production, while in Pakistan the Rekordec feasibility study is on track for completion this year.
Speaker Change: work has already started on the construction of what we term early works.
Mark Bristow: Infrastructure, while a recruitment drive focused on employees from the Balochistan province, which is the very foundation of what we're going to build Rekordex. Just a reminder, that the Pueblo Vero project is designed to increase annual production, sustainably above 800,000 ounces for 20 plus years. After the failure of the conveyor infrastructure last year, it is now being rebuilt, and the focus over the past three months has been on throughput, for the third quarter, attention is now on grinding, flotation, and recovery, ramping to achieve design output parameters, work on the new El Naranjo trading storage facility is advancing as planned.
Speaker Change: infrastructure, while a recruitment drive focused on employees from the Balochistan province, which is the very foundation of what we're going to build Rekordec.
Speaker Change: Just a reminder
Speaker Change: that the Pueblo Vero project is designed to increase annual production.
Speaker Change: sustainably above 800,000 ounces for 20 plus years.
Speaker Change: After the failure of the conveyor infrastructure last year it has now been rebuilt and the focus over the past three months has been on throughput.
Speaker Change: For the third quarter, attention is now on grinding, flotation, and recovery, ramping to achieve design output parameters.
Speaker Change: In the meantime, work on the new El Naranjo Tailing Storage Facility is advancing as planned.
Mark Bristow: Now you can see how the project has advanced over the past 12 months and the outlook for the remainder of the year. Now to Africa and Middle East region, which delivered its usual reliable performance with steady production and well-contained costs. These are the highlights and I'll tell you more about them as we go along.
Speaker Change: Now you can see how the project has advanced over the past 12 months and the outlook for the remainder of the year.
Speaker Change: Now to Africa and Middle East region, which delivered its usual reliable performance with steady production and well-contained costs.
Speaker Change: These are the highlights and I'll tell you more about them as we go along.
Mark Bristow: Another steady quarter for Lulogon Kato with cash costs well contained and all-in sustaining costs impacted by additional stripping for the Yalea pit pushback. Positive results from ongoing brownfields exploration point to further life of mine extension opportunities. And as we indicated last quarter, we continue to engage with the government of Mali on their desire to increase their benefits from the mining industry, while protecting our rights and the economic viability of the Lula-Gonkato complex going forward. In the north of the LULO permit, drill results from the Bavotto target have identified a large-scale, well-endowed system with high-grade intercepts.
Speaker Change: Another steady quarter for Lulugon Kato with cash costs well-contained and all-in sustaining costs impacted by additional stripping for the Yalea Pit pushback.
Speaker Change: Positive results from ongoing brownfields exploration point to further life of mine extension opportunities.
Speaker Change: And as we indicated last quarter, we continue to engage with the Government of Mali on their desire to increase their benefits from the mining industry, while protecting our rights and the economic viability of the Lula-Gonkoto complex going forward.
Speaker Change: In the north of the LULO permit, drill results from the Bavota target have identified a large-scale, well-endowed system with high-grade intercepts.
Mark Bristow: This, along with other near mine targets, all goes well for Lula Gunkoto to again replace the gold they mined this year, and across to the DRC where Khabbali picked up speed after a slow start, to the year with weight stripping providing access to higher grade OpenFit All. Meanwhile, next year's planned commissioning of its solar power and battery storage facility will complement the mine's three hydropower plants, increasing the renewable component of its energy use to 85% and in fact, For six months of the year, we'll have 100% renewable energy driving our power delivery.
Speaker Change: This, along with other near mine targets, all goes well for Lula Guncato to again replace the gold they mined this year.
Speaker Change: And across to the DRC where Kabali picked up speed after a slow start to the year with weight stripping providing access to higher grade OpenFit All.
Speaker Change: Meanwhile, next year's planned commissioning of its solar power and battery storage facility will complement the mine's three hydropower plants, increasing the renewable component of its energy use to 85 percent. And in fact,
Speaker Change: For six months of the year we'll have 100% renewable energy driving our power delivery.
Mark Bristow: As at Lulogon Cotto, brownfields exploration continues to deliver further potential for growth with high-grade results from the Agbarabow, Rhino, Kumbakola targets pointing to a significant deposit, within just four kilometers of the plot. The prolific KCD trend is also producing new opportunities for reserve additions. And therein lies the quality that what we, you know, everyone sort of created a definition of tier one asset. But real tier one assets come with enormous upside opportunity, as you see in Lula Goncato and at Cabali and, and significantly in, in Nevada, in Tanzania.
Speaker Change: As at Lulogon Cotto, brownfields exploration continues to deliver further potential for growth with high-grade results from the Agbarabo, Rhino, Kumbakola targets pointing to a significant deposit.
Speaker Change: within just four kilometers of the plant.
Speaker Change: The prolific KCD trend is also producing new opportunities for reserve additions. And therein lies what everyone sort of created a definition of Tier 1 assets.
Speaker Change: But real TL1 assets come with enormous upside opportunity, as you see in Lulogon Cotto and at Kabali and significantly in Nevada.
Mark Bristow: Yep. North Mara and Bullion Hulu both increased production while driving down costs, and the resuscitation of these mines is one of our major success stories, as is the concept of formal benefit-sharing partnerships with host countries which we successfully pioneered, with the Tanzanian government. The Lemoina copper mine in Zambia delivered a higher production at lower cost, in line with the plan and is set for an even stronger second half of the year.
Speaker Change: In Tanzania
Speaker Change: North Mara and Bullion Hulu both increased production, while driving down costs and the resuscitation of these mines.
Speaker Change: is one of our major success stories.
Speaker Change: as is the concept of formal benefit-sharing partnerships with host countries which we successfully pioneered with the Tanzanian government.
Speaker Change: The Lumwana copper mine in Zambia delivered a higher production at lower costs in line with the plan and is set for an even stronger second half of the year.
Mark Bristow: The mine is also on the threshold of its super pit expansion, which will increase production to some 240,000 tons of copper and extend the operation's life by more than 30 years. First production of this project is expected, or from this project is expected, in 2028.
Speaker Change: The mine is also on the threshold of its super pit expansion, which will increase production to some 240,000 tons of copper and extend the operation's life by more than 30 years.
Speaker Change: First production of this project is expected, or from this project is expected.
Mark Bristow: The La Mina Super Pit and Rikadek are two of the organic growth projects I referred to at the start of the presentation. And with y'all recapped, yeah. Together they will provide powerful support for Barrick's drive to grow our gold equivalent production by 30%, during this decade. And it's worth reminding you that RICODEC will be both a gold and a copper mine designed to produce 400,000 tons of copper on an annual basis and 500,000 ounces of gold per year in phase two of its development.
Speaker Change: in 2028.
Speaker Change: The Lamina Super-Pit and Ricker Deck are two of the organic growth projects I referred to at the start of the presentation.
Speaker Change: And with y'all recap yeah
Speaker Change: Together, they will provide powerful support for Barrick's drive to grow our gold equivalent production by 30% during this decade. And it's worth reminding you that Rickerdeck
Speaker Change: will be both a gold and a copper mine designed to produce 400,000 tons of copper on an annual basis and 500,000 ounces of gold per year in phase two of its development.
Mark Bristow: Add to that the ramp up of basically two new mines, Gold Rush and Peavey, to be followed by a potential brand new mine in Four Mile, of which Barrick owns 100%, and which can utilize the existing Nevada gold mines infrastructure and processing facilities. Barrick, has an unmatched growth portfolio that separates us from the industry with prospects of even more to come from our ongoing exploration initiative. So, this brings me to a subject I have been flagging for some time, and that is How Undervalued.
Speaker Change: Add to that
Speaker Change: the ramp-up of basically two new mines.
Speaker Change: Gold Rush
Speaker Change: and PV to be followed by a potential brand-new mine.
Speaker Change: in Four Mile, of which Barrick owns 100%, and which can utilize the existing Nevada gold mines infrastructure and processing facilities.
Speaker Change: Barrick
Speaker Change: has an unmatched growth portfolio that separates us from the industry with prospects of even more to come from our ongoing exploration initiatives.
Speaker Change: So, this brings me to a subject I have been flagging for some time.
Mark Bristow: Barrick's shares are today. So to my, to end my presentation, I wanted to take you through, some research based on consensus net asset value of our assets. On this slide, we highlight two of our key businesses, on the left, of the slide, you have Nevada Gold Mines, which is by far the best gold asset in the world's most mining friendly jurisdiction. The right side shows our growing copper business is well on track to becoming world class amongst peers, some of which have recently attracted international attention, moving, One step further. This table identifies the unrealized value embedded in Barrick's, within Barrick's portfolio. Nevada Goldmines on its own.
Speaker Change: and that is how undervalued Barrick shares are today.
Speaker Change: So to end my presentation I wanted to take you through some research based on consensus net asset value of our assets.
Speaker Change: On this slide, we highlight two of our key businesses.
Speaker Change: On the left.
Speaker Change: of the slide you have Nevada gold mines which is by far the best gold asset in the world's most mining friendly jurisdiction
Speaker Change: The right side shows our growing copper business is well on track to becoming world-class amongst peers.
Speaker Change: some of which have recently attracted international attention.
Speaker Change: moving
Speaker Change: One step further...
Speaker Change: This table identifies the unrealized value embedded in Barracks within Barracks Portfolio.
Unknown Executive: John Tumazos, Bob Brackett, John Thornton, Unknown Executive, John Thornton, Unknown Executive, should command the industry's highest valuation. On that basis, this analysis conservatively assumes the price to have multiple equivalent to that of Agnico Eagle, although arguably NGM would be higher rated given its size and quality. The analysis applies a similarly conservative market multiple to our copper asset, in line with copper peers. Although again, I would note that the recent BHP Lundin transaction ascribed significantly higher multiples, to those undeveloped costs by assets in Argentina.
Speaker Change: Nevada gold mines on its own should command the industry's highest valuation.
Speaker Change: On that basis, this analysis conservatively assumes the price to NAV multiple equivalent to that of Agnico Eagle.
Speaker Change: although arguably NGM would be higher rated given its size and quality.
Speaker Change: The analysis applies a similarly conservative market multiple to our copper assets.
Speaker Change: in line with copper peers, although again, I would note that the recent BHP Lundin transaction ascribed significantly higher multiples to those undeveloped copper assets in Argentina.
Unknown Executive: Again, the analysis is based on the current analyst consensus now. But we expect these NAVs, to increase, as we will be publishing updated feasibility studies on our two key growth projects, at the end of the year. As you can see from the table, on the basis of the analysis, the value of just our interest in the Nevada gold mine.., and our copper portfolio loan exceeds our current market cap, according to the current market value of our shares. The rest of our business has a negative value of $1.2 billion. This includes our interest in three tier one gold mines outside Nevada. The World Class Four Mile Project.
Speaker Change: Again, the analysis is based on the current analyst's consensus NAVs.
Speaker Change: But we expect these NAVs...
Speaker Change: To increase
Speaker Change: as we will be publishing updated feasibility studies on our two key growth projects.
Speaker Change: at the end of the year.
Speaker Change: As you can see from the table, on the basis of the analysis, the value of just our interest in the Nevada Gold Mines
Speaker Change: and our copper portfolio alone exceeds our current market cap.
Speaker Change: In fact,
Speaker Change: according to the current market value of our shares.
Speaker Change: The rest of our business has a negative value of $1.2 billion.
Speaker Change: This includes our interest in three tier one gold mines outside Nevada, the world-class four mile project.
Mark Bristow: Other gold mines and development projects still in the pipeline, and our exploration team's unparalleled success in uncovering new unknowns, in short. I would submit, that when you buy Barrick today, you get a lot for free. We set out in 2019 to build a sustainably profitable gold and copper mining company, focused on world-class assets. We do not have to buy them, at a premium, as I indicated in my introduction. They were embedded, in the combined portfolio that we put together at market, and Just Required Identification Evaluation.
Speaker Change: other gold mines and development projects still in the pipeline and our exploration team's unparalleled success in uncovering new answers.
Speaker Change: In short,
Speaker Change: I would submit that when you buy a Barrick today you get a lot for free.
Speaker Change: We set out in 2019 to build a sustainably profitable gold and copper mining company focused on world-class assets.
Speaker Change: We do not have to buy them at a premium as I indicated in my introduction
Speaker Change: They were embedded.
Speaker Change: in the combined portfolio that we put together at market.
Speaker Change: and just required identification, evaluation, development and delivery which is where we are today.
Mark Bristow: Development and Delivery, which is where we are today. On top of that, We have replaced all the answers we have mined, and repaired our balance sheet to be industry leading and capable of supporting our dividend policy and growth plans. Barrick represents an investment opportunity unmatched in our sector and I hope you'll leave the presentation with a clearer understanding of why the case for such an investment is so compelling. Thank you all for your attention and we'll be happy to take questions as usual. Where do you want to start here in the audit? Mark, thanks very much for the presentation. It's Lawson Winder from Bank of America, wanted to start on copper, about LeMuana.
Speaker Change: On top of that
Speaker Change: We have replaced all the ounces we have mined and repaired our balance sheet to be industry leading and capable of supporting our dividend policy and growth plans.
Speaker Change: Clearly.
Speaker Change: Barrick represents an investment opportunity unmatched in our sector and I hope you'll leave the presentation with a clearer understanding of why the case for such an investment is so compelling.
Speaker Change: Thank you all for your attention and we'll be happy to take questions as usual.
Speaker Change: Where do you want to start? Here?
Speaker Change: Mark, thanks very much for the presentation. It's Lawson Winder from Bank of America. Hello.
Lawson Winder: So two questions on that particular asset. So one, the power situation in the country, I mean, currently, there's been a reduction of 20% initially and now, you anticipate that will continue to improve going forward? Is there any risk that that could be reduced further? And then about the LeMana project ramping up and in first production in 2028. What is the latest thinking on a power?
Lawson Winder: I wanted to start on copper and just ask about Lemoana. So two questions on that particular asset. So one, the power situation in the country. I mean, currently there's...
Speaker Change: production of 20% initially and now
Speaker Change: for Electricity Availability. Do you anticipate that will continue to improve going forward? Is there any risk that that could be reduced further? And then secondly, when you think about the La Mona project ramping up and in first production in 2028, what
Mark Bristow: So there are, Lawson, there are some plans to put extra infrastructure, power infrastructure into Zambia. We have already been awarded the capacity required to bring in the expansion in in Zambia. So technically, we're, we're, cleared to draw off the grid as the country itself looks to expand its infrastructure. At the same time, Barrick has recently completed a study of the entire Zambian power infrastructure and potential, and of course we share that with the authorities.
Speaker Change: is the latest thinking on a power solution for that asset.
Speaker Change: So there are, Lawson, there are some plans to put extra infrastructure, power infrastructure into Zambia. We have already been awarded the capacity required to bring in the expansion in Zambia. So technically we're...
Speaker Change: where
Speaker Change: Cleared for to draw off the grid as the the country itself looks to expand its infrastructure at the same time Barrick has recently completed a study
Speaker Change: of the entire... John Tumazos, Bob Brackett, Greg Barnes, John Thornton, Unknown Executive,
Speaker Change: Zambian power infrastructure and potential. And of course we share that with the authorities.
Mark Bristow: And then as far as the short-term issues go, you're right, 40% is now the rationing, but we have got a back-to-back agreement with the utility to be able to purchase third-party power from outside Zambia at a discount to the cost of generating diesel power, and we've got full backup diesel power on site as well.
Speaker Change: And then as far as the short-term issues go, you're right, 40% is now the rationing, but we have got a back-to-back agreement.
Speaker Change: With the the utility
Speaker Change: to be able to purchase power, third party power from outside Zambia at a discount to the cost of generating diesel power and we've got full backup diesel power on site as well.
Mark Bristow: You know, having said that, and so we saw this coming, we invested in our own insurance; we then worked with the government to make sure that we could access additional external third-party power at a lower price to what we bought or purchased, and what we generate ourselves. But at the same time, we brought in additional infrastructure and generating equipment to be able to support ourselves. And as part of that, we've also reached an agreement on co-generation.
Speaker Change: Having said that, and so we saw this coming, we invested in our own insurance. We then worked with the government to make sure that we can access additional external third-party power at a lower price to what we...
Speaker Change: purchase what we generate ourselves but at the same time we we brought in additional infrastructure
Speaker Change: and generating equipment to be able to support ourselves. And as part of that, we've also reached agreement on co-generation.
Mark Bristow: So we can generate power ourselves and feed it through the grid. So we've done pretty much every, I mean, we've grew up in West Africa, where you have to rely on your own self to be able to supply power.
Speaker Change: So we can generate power ourselves and feed it through the grid. So we've done pretty much everything. I mean, we grew up in West Africa where you have to rely on your own self to be able to supply power.
Mark Bristow: And so, and, and the AME team is, you know, very equipped to be able to deal with this stuff. Having said that, there's of course, challenges, you know, we every now and then we get the thing, the power delivery unsinked, and we have to pick up on it, we've got, and but we're getting much better at being able to do that. And so at this stage, we don't believe that in the medium to long term, that there's a risk, but we will continue to look at solutions.
Speaker Change: And so, and the AME team is, you know.
Speaker Change: very equipped to be able to deal with this stuff.
Speaker Change: Having said that, there's of course challenges. You know, every now and then we get the power delivery unsynced and we have to pick up on it. But we're getting much better at being able to do that.
Speaker Change: and so at this stage we don't believe that in the medium to long term that there's a risk but we will continue to look at solutions and of course as you know we've just commissioned
Mark Bristow: And of course, as you know, we've just commissioned, The TS solar plant in Nevada, that's 200 megawatts. So, you know, if you look back to our experience... Going back to Randall days, you know, we started with generating diesel, then we went into heavy fuel, now we gas turbines, solar.
Speaker Change: The TS solar plant in Nevada, that's 200 megawatts. So, you know, if you look back to our experience...
Mark Bristow: So we have a very good under technical capability of managing power. And the first thing is to, is to work with the utility to make sure that one, they understand, The opportunities and the infrastructure, because it's no good just dumping in power like you saw in Pakistan, where where they've got lots of power, but they can't get it anyway, because the infrastructure is unreliable. So that was our first investment alongside or on behalf of the Zambian government.
Speaker Change: Going back to Randall days, you know, we started with generating diesel, then we went into heavy fuel, now we gas turbines, solar, so we have a very good technical capability of managing.
Speaker Change: power. And the first thing is to work with the utility to make sure that they understand
Speaker Change: The opportunities and the infrastructure, because it's no good just dumping in power like you saw in Pakistan.
Speaker Change: Where they've got lots of power, but they can't get it anywhere because the infrastructure is unreliable. So that was our first investment alongside or on behalf of the Zambian government. So, you know, we're very aware of it. We are not
Mark Bristow: So, Are we very aware of it? We are not. We are not dismissing it, we recognize it as a risk, but once you, you know, the... The, Once you understand it, then you can work too. Michigan.
Speaker Change: We are not dismissing it we recognize it as a risk, but once you you know the
Speaker Change: Once you understand it, then you can work to mitigate it.
Josh Rales: RBC. Mark, if I can ask you a question on capital allocation. I think historically you've talked about prioritizing or wanting to prioritize financial liquidity for some of the copper growth portfolio. Development Capital. Company now has started a little bit of a buyback. Is it reasonable to assume that this could continue from here, or is this sort of a one-off? So, first of all, Josh, just to correct you on your report this morning.
Speaker Change: Thank you for watching.
Speaker Change: That's RBC.
Speaker Change: Mark, if I can ask you a question on capital allocation. I think historically you've talked about prioritizing or wanting to prioritize.
Mark Bristow: financial liquidity for some of the copper growth portfolio development capital. The company now has started a little bit of a buyback. Is it reasonable to assume that this could continue from here or is this sort of a one-off thing?
Josh: No, first of all, Josh, just to correct you on your report this morning, we put in the buyback approvals.
Josh Rales: We don't, we put in the buyback approval, so that we can manage shorts in the market, and, and any softness in the stock. So, And you've seen that through my whole career. I don't say one thing and do another.
Josh: so that we can manage shorts in the market.
Josh: and any softness in the stock.
Josh: Our discipline is real and you've seen that through my whole career. I don't say one thing and do another.
Mark Bristow: And so managing capital allocation is core to us. And so the way the model works, which we've shared with our investors is when we get extra cash net of debt. We will pay that out as evidence.
Josh: and so managing capital allocation is core to us and so the way the model works which we've shared with our investors is when we get extra cash net off
Mark Bristow: As management, we've got the flexibility as we go towards that point of using that money to buy back stock. And so then you delay the dividend. And we will manage it against how we.., deem the value of the shares. And right now there's no question that the shares are a good buy. And so, you know, we got through some of our challenges at the earlier part of this year. We had some extra cash. We had a window because remember, we have closed periods where we can't buy.
Josh: Debt.
Josh: We will pay that out as a dividend.
Josh: As management, we've got the flexibility as we go towards that point of using that money to buy back stock. And so then you delay the dividend. And we will manage it against how we...
Josh: deem the value of the shares and right now there's no question that the shares are a good buy.
Josh: and so you know we got through some of our challenges at the earlier part of this year we had some extra cash we we had a window because remember we have closed periods where we can't buy
Mark Bristow: And again, what we said in the press releases, we should restart it now. Share Purchase. And we'll do that within that guidance that we've shared with the market. And I would also point out, if you look at Barrick and its returns through dividends, share buybacks, return of capital, we're not out of tilter, with our peers, and we still got a very strong balance. And so if you look at the returns, particularly given the current share price, the returns are quite healthy. Against the Equity.
Josh: And again, what we said in the press release is we should restart it now.
Josh: share purchase and we'll do that within that guidance that we've shared with the market. And I would also point out if you look at Barrick and its returns through dividends, share buybacks, return of capital, we're not out of tilter.
Josh: with our peers.
Josh: and we've still got a very strong balance sheet.
Josh: And so if you look at the returns, particularly given the current share price, the returns are quite healthy against the equity.
Mark Bristow: But, you know, our objective will be, first of all, get the share price up. That's the real focus, and in the long term, we'll pay the dividends as we did, as I did in Rangold Resources, you know, and we fundamentally believe, that dividends should come from the PLL, PNL, in a mining company like that, and you shouldn't be borrowing to pay dividends. And that's the way we always run our businesses and that's the way we plan, and we and just just probably another bit of color. This quarter is good because you see the costs are flat.
Josh: But our objective will be, first of all, get the share price up, that's the real focus.
Josh: and in the long term we'll pay the dividends as we did, as I did, in Rangold Resources, you know. And we fundamentally believe...
Josh: that dividends should come from the PLL, P&L, in a mining company like Barrick. And you shouldn't be borrowing to pay dividends. And that's the way we always run our businesses, and that's the way we plan to continue.
Josh: And just probably another bit of color.
Mark Bristow: Okay, on the swings and roundabouts, there are a couple of assets that still have a way to go, and there are other assets that are ahead of the curve, like PV's got some way to go, and Turquoise Ridge as well. But largely, we're at that point where we're now starting to, we've caught up with a lot of the development, we're starting to transition to our own teams, back to our own teams from the contractors on the development, particularly in Nevada, to catch up and build that flexibility in the underground operations.
Josh: This quarter is good because you see the costs are flat.
Speaker Change: OK, on the swings and roundabouts, there are a couple of assets that still have a way to go and there are other assets that are ahead of the curve, like PV's got some way to go and Turquoise Ridge as well.
Speaker Change: Um...
Speaker Change: But largely we're at that point where we're now starting to, we've caught up with a lot of the development. We're starting to transition to our own teams, back to our own teams from the contractors on the development, particularly in Nevada, to catch up and build that flexibility in the underground operations.
Mark Bristow: And, and a lot of that supporting capital, the sustaining capital, you call it. That starts coming off as we forecast now for a while and it gets replaced by a growing growth capital as we go into the expansion of Lamona and the re in the construction of. All that.
Speaker Change: And a lot of that supporting capital, the sustaining capital you call it,
Speaker Change: That starts coming off as we forecast now for a while and it gets replaced by a growing growth capital as we go into the expansion of La Moina and the construction of La Moina.
Mark Bristow: Rick O'Deck and then of course 4 Mile is a brand new asset it's still at that pre-feasibility pre-pre-feasibility stage and we need to put get our head around that but you can see how quickly the geology started to link together, And so that's another opportunity. And then the remaining capital in Pablo Verga is all about the tailings facility. The capital itself for the expansion is large. One more question on sort of the same. I do like the slide you had.
Ricker Dick: of Ricker Dick.
Ricker Dick: And then, of course...
Ricker Dick: Formal is a brand new asset. It's still
Ricker Dick: at that pre-feasibility, pre-pre-feasibility stage. And we need to put, get our head around that, but you can see how quickly the geology started to link together.
Ricker Dick: and so that's another opportunity and then the remaining capital in Pueblo Verde is all about the tailings facility the capital itself for the expansion is largely spent.
Speaker Change: One more question on sort of the same train of thinking you were reviewing. I do like the slide you had that
Mark Bristow: Demonstrates the value proposition with the stock here, and sort of the real core value drivers are wondering. You know, in the event that shareholders or investors don't recognize that, would the company ever consider... Spitting out some assets. Investing in some of these non-core positions to try to realize the value on a quicker basis. Well, first of all, have you ever seen that work? You know, getting rid of non core assets, absolutely very logical. But moving high quality assets out of a portfolio makes no sense.
Speaker Change: that demonstrates the value proposition with the stock here and sort of the real core value drivers. I'm wondering, you know, in the event that shareholders or investors don't recognize that, would the company ever consider you know, spinning out some assets or...
Speaker Change: divesting some of these non-core positions to try to realize the value on a quicker time frame. Well first of all have you ever seen that work?
Mark Bristow: First of all, the mining industry has got too many companies with not enough management as it is, and you know, breaking these companies up without a third party acquisition. Barr Competent Management is a challenge to deliver value, and and that's a short term opportunity. You know, it's like people saying, So. Why don't you?
Speaker Change: You know, getting rid of non-core assets absolutely very logical, but moving high quality assets out of a portfolio makes no sense. First of all, the mining industry's got too many companies with not enough management as it is.
Speaker Change: And, you know, breaking these companies up without a third-party acquisition by competent management is a challenge to deliver value. And that's a short-term opportunity. You know, it's like people saying...
Mark Bristow: delay the capital development of your assets and give us the dividend. So how do we build the company because it's a consumptive industry, you've got to replace what you what you mine. And I would take you back to two examples. We went through the same debate to the market in 2011 in Rangal. We ended up at two over two times. Now trading at over two times NAV eventually as we delivered on those assets. Another really good example is Freeport.
Speaker Change: So...
Speaker Change: Why don't you
Speaker Change: delay the capital development of your assets and give us the dividend so how do we build the company because it's a consumptive industry you've got to replace what you what you mine and I would take you back to two examples
Speaker Change: We went through the same debate to the market in 2011 in Rangold.
Speaker Change: We ended up at over two times NAV, trading at over two times NAV eventually as we delivered on those assets.
Mark Bristow: You know, we try to convince Freeport to merge with us when there were $10 billion market cap. They were resolute about, The value of their company and the importance of investing in Grasberg's underground infrastructure. It took them years to get there, and they languished around the bottom end of value or under this value.
Speaker Change: Another really good example is Freeport.
Speaker Change: You know, we try to convince Freeport to merge with us when there were $10 billion market caps. They were resolute about...
Speaker Change: their value of their company and the importance of investing in Grasberg's underground infrastructure. It took them years to get there.
Speaker Change: And they languished around the bottom end of the valley, or under this valley.
Mark Bristow: But look where they're trading today. They delivered on that plan. And they and the markets recognize them having been very negative to that decision to invest in that country in Indonesia.
Speaker Change: But look where they're trading today. They delivered on that plan and the markets recognize them having been very negative.
Speaker Change: to that decision to invest in that country, in Indonesia.
Mark Bristow: So, you know, and if you look at all the if you look at what grew BHP, It was those, last century investments in high-risk developments, Escondida, the oil and gas, the iron ore, that really built that company into what it is today. And that's what drove Rio to get where it is, and then it had a bad patch. And it's now reflecting on how does it get back there, but it still made some big decisions in Mongolia, it's now in West Africa, and so this world has moved that way, and if you want to play in the mining industry and we've transitioned out of the mid-cap, lower-cap instant gratification model.
Speaker Change: Yeah, and if you look at all the... if you look at what grew BHP...
Speaker Change: It was those
Speaker Change: Lost century investments in high-risk developments. Escondida.
Speaker Change: the oil and gas.
Speaker Change: that really, the iron ore
Speaker Change: that really built that company into what it is today.
Speaker Change: And that's what drove Rio to get where it is, and then it had a bad patch.
Speaker Change: and it's reflecting on how does it get back there but it still made some big decisions in Mongolia, it's now you know in West Africa and so this world has moved that way.
Speaker Change: And if you want to play in the mining industry and we've transitioned out of the
Speaker Change: mid-cap, lower-cap, instant gratification model.
Mark Bristow: We're in there for the long term. We create a lot of value and we know that this value delivers significant value for all our stakeholders. So that's the game with we've signed up and to take, this company back to where, where to the sum to the individual part, would would not make any sense to certainly me and I don't believe when you look at our register our main investors are all still very much intact from 29.
Speaker Change: We're in there for the long term we create a lot of value and we know that this value delivers significant value for all our stakeholders so that's the game with we've signed up and to take
Speaker Change: this company back to where, to the individual parts, would not make any sense to certainly me and I don't believe when you look at our register, our main investors are all still very much intact from 2019.
Mark Bristow: Good morning, Brian McArthur, Raymond James. So, Mark, you've highlighted how exciting 4MILE might be, but can you just go over and review, because I suspect the devil's in the details now, how it gets vended in to NGM? And I guess the question really here is, I know you have to do a study, but technically, what type of study does it have to be?
Brian McArthur: Good morning, Brian McArthur, Raymond James. So Mark, you've highlighted how exciting 4 Mile might be, but can you just go over and review, because I suspect the devil's in the details now.
Mark Bristow: Can Newmont force you to do that study? Who controls the time horizon on that? Maybe just how you think about this going forward. So let me cover the strategy, and then Graham, who actually negotiates the deal, I'll pass the detail to him. But nobody can force anyone to do anything in this life, and certainly not under this agreement.
Speaker Change: how it gets vended in to NGM. And I guess the question really here is, I know you have to do a study, but technically, what type of study does it have to be? Can Newmont force you to do that study?
Speaker Change: who controls the time horizon on that. Maybe just tell you think about this going forward. So let me cover the strategy and then Graham who actually negotiated the deal, I'll pass the detail to him. But there's nobody can force anyone to do anything in this life and certainly not under this agreement.
Mark Bristow: The point is, as you know, we have a partnership with Newmont in Nevada, and we have the right to access and utilize Nevada gold mines infrastructure, as do, as does Newmont. And so at the end of the day, there's, there's an opportunity to find a way to develop it for the in the best interests of both sets of shareholders, which is what we should be doing as custodians of these assets. At the same time, our responsibility as all the time that that, format remains 100% as it is to maximize, the asset for our shareholders. And so that's the work we're doing now, is that we're doing, we've got 10 rigs on site. You go there, it looks like the old days in Carlin.
Graham: The point is as you know, we have a partnership with with Newmont in in in Nevada and And we have the right to access and utilize Nevada gold mines infrastructure as do
Graham: as does Newmont.
Speaker Change: And so, at the end of the day, there's an opportunity to find a way to develop it in the best interest of both sets of shareholders, which is what we should be doing as custodians of these assets. At the same time, our responsibility as...
Speaker Change: [inaudible]
Speaker Change: 4 Mile remains a 100% asset, is to maximize...
Speaker Change: the asset for our shareholders.
Speaker Change: And so that's the work we're doing now, is that we're doing, we've got 10 rigs on site, you go there, it looks like the old days in Carlin. You got, you know, just see rigs and trucks everywhere. And every intersection as you see is, you know, multi-ounce.
Mark Bristow: You know, just see rigs and trucks everywhere. And every intersection, as you see, is, you know, multi-armed, intersections and we're talking very thick, Bradshaw style obery. And so our work this year is ready to get a feel of what it is. We don't make any secret of it, it's information we share freely both with the market, our shareholders and of course Newmar. And then once we've got that, we'll be able to have a better, a view on our options and and and there is a there is a way to develop four mile on a stand-alone base. It is definitely a way to do it, but again, that's all in.
Speaker Change: intersections and we're talking very thick
Speaker Change: Breccia style ovaries.
Speaker Change: And so our work this year is ready to get a feel of what it is.
Speaker Change: We don't make any secret of it, it's information we share freely both with the market, our shareholders and of course Newmont.
Speaker Change: And then once we've got that, we'll be able to have a better view on our options. And there is a way to develop 4MILE on a stand-alone basis.
Speaker Change: It is definitely a way to do it, but again, that's all in.
Graham Shuttleworth: The optionality going forward and how we'll choose it, but getting back to the actual legal basis on which we can manage this, I'll pass it to Graham. Thanks, Mark. Yeah, so the Joint Venture Agreement has.., and specific provisions that deal with this. First and foremost, [inaudible] In terms of bringing the asset into the joint venture, provided the joint venture meets a minimum return hurdle rate. It goes into the joint venture and that would be on the back of a feasibility study.
Speaker Change: the optionality going forward and how we'll choose it, but getting back to the actual legal basis on which we can manage this, I'll pass it to Graham.
Graham: Thanks Mark. Yeah, so the Joint Venture Agreement has...
Graham: and specific provisions that deal with this. First and foremost, Dr. John Tumazos, Dr. John Tumazos, Dr. John Tumazos, Dr. John Thornton,
Graham: In terms of bringing the asset into the joint venture, provided the joint venture meets a minimum return hurdle rate, it goes into the joint venture, and that would be on the back of a feasibility study.
Graham Shuttleworth: And in terms of determining the value of the, of and then importantly, market multiples for the appropriate asset. So it's very much a market-based valuation. And then on top of that, in terms of determining its value.
Graham: and in terms of determining the value of the
Graham: of the asset for the purposes of going into the joint venture, that is determined based on market valuation. So effectively it would be consensus gold prices, a combination of consensus spot and recent history gold prices.
Graham: And then importantly, market multiples for the appropriate asset. So it's very much a market-based valuation.
Graham Shuttleworth: It gets the benefit of all of the infrastructure that's already embedded. So, effectively, the... The feasibility study doesn't carry any of the existing infrastructure, it simply looks at what the cost would be on a go-forward basis for that asset.
Graham: And then on top of that, in terms of determining its value...
Graham: It gets the benefit of all of the infrastructure that's already embedded.
Speaker Change: The feasibility study doesn't carry any of the existing infrastructure. It simply looks at, you know, what the cost would be.
Graham Shuttleworth: So effectively, in the case of 4 Mile, it would benefit from all of the Gold Rush infrastructure that's already pre-developed. And then the cost of the feasibility study itself is also something that is part of the compensation. So in other words, on top of that market valuation.
Speaker Change: on a go-forward basis for that asset. So effectively, in the case of 4 Mile, it would benefit from all of the Gold Rush infrastructure that's already pre-developed.
Speaker Change: And then the cost of the feasibility study itself is also something that is part of the compensation. So in other words, on top of that market valuation.
Graham Shuttleworth: So that's the key, the key aspect. So just to clarify that there's not much that's left behind in how everyone, you pay full value for the, for bringing it to feasibility and then the value on the basis of the, and Mark, Anita Soni at CIBC. My question is with regards to Pueblo Viejo, so you've got, thanks for the slide where it shows the recovery rates into the end of the year. I think you have a rebound of 79% and then 80% in Q3 and Q4 respectively. Could you just talk about how that evolves over 2025 as well, I think the targeted rates are around 92% if I'm correct? Um, no, I think it's all just above 80.
Speaker Change: So, that's the key aspects of it.
Speaker Change: So just to clarify that there's not much that's left behind in how everyone you pay full value for bringing it to feasibility and then the value on the basis of the feasibility.
Speaker Change: Hi Mark, Anita Sone at CIBC. Hello Anita. Good morning.
Anita Sone: My question is with regards to Pueblo Viejo. Thanks for the slide where it shows the recovery rates into the end of the year. I think you have a rebound of 79% and then 80% in Q3 and Q4 respectively.
Speaker Change: Could you just talk about how that evolves over 2025 as well? I think the targeted rates are around 92% if I'm correct?
Speaker Change: No, I think it's all just above 80. That's correct, the final targeted recovery.
Anita Soni: That's correct, the final. Targeted Recovery. Simon, are you on the call? Yeah, I'm Pat. What's the targeted recovery rate for? PV, Ultimately, Mark Hill.
Speaker Change: Simon, are you on the call?
Simon: Yeah, I'm here.
Speaker Change: What's the targeted recovery rate for?
Peavey: Uh, Peavey?
Mark Hill: ultimately Mark Hill
Mark Bristow: So it's an incremental over the next couple of years. We lift to 79 and then step up from. Yes, the Ateez yeah, I don't think it's 92, but Mark, are you... Mark Hill, are you on the call? Unknown, John Steele. Don't kill. Hi Mark, I don't have the exact number in my head but going up through mid-80s, 85 next year, I'm not sure of the exact number for quarters, I'll have to look that up and get back to you.
Speaker Change: So it's an incremental over the next couple of years. We lift to 79 and then step up from
Speaker Change: Yeah, the 80s.
Speaker Change: Yeah.
Speaker Change: I don't think it's 92, but Mark are you?
Speaker Change: Mark Hill, are you on the call?
Speaker Change: Not on the hill. John Steele?
John Steele: John Steele
John Steele: Hi Mark, I don't have the exact number in my head, but going up through mid-80s, 85 next year, I'm not sure of the exact number for quarters. I'll have to look that up and get back to you.
John Steele: So that's the number I have in my head, the sort of mid-80s. And we're targeting, as you see, end of this year at 80, then 82, and the sort of 85, 86s. And, and, Anita, the focus at the moment is, Like, I'm sure you've listened to this sort of line before, many times in the mining industry. This is a single sag mole, and then the original tag mole, the ball mole, and getting those moles to.., optimize the grind to optimize the flow, to optimize the recovery.
Speaker Change: So that's the number I have in my head, the sort of mid 80s, and we're targeting as you see end of this year at 80, then 82 and the sort of 85, 86s.
Speaker Change: Um...
Speaker Change: And, Anita, the focus at the moment is...
Anita Sone: Like, I'm sure you've listened to this sort of line before many times in the mining industry. This is a single sag mole and then the original sag mole is a ball mole and getting those moles to
Anita Sone: optimize the grind to optimize the float.
Mark Bristow: That's the focus that we're in right now, balancing that. We've got, we're comfortable with the throughput. We're comfortable with the front end of the plant.
Anita Sone: to optimise the recovery. That's the focus that we're in right now, is balancing that. We've got, we're comfortable with the throughput.
Mark Bristow: It's now making sure that we've got the process control into the flow sheet. And now it's really teaching the process control to be able to optimize that balance between grind and not gritting up the circuit and the flotation. And I was there just the other day and all the float cells are working, everything's working now, just optimising that balance.
Anita Sone: We're comfortable with the front end of the plant.
Anita Sone: It's now making sure that we and and we were we've got the process control into the Into the flow sheet and now it's really teaching
Anita Sone: the process control to be able to optimise that balance between grind and not gritting up the circuit and the flotation.
Anita Sone: And I was there just the other day and all the float cells are working, everything is working now, just optimising that balance. So the big focus was get the throughput to a point where we are comfortable with the ability to make that throughput and now we're working on that.
Mark Bristow: So the big focus was get the throughput to a point where we are comfortable with the ability to make that throughput and now we're working on that, the optimization of the of the actual, design criteria, which is recovery and flow and ground class or grind the grind bracket and not over grinding it or under grinding it. Second question, both for Carlin and Cortez, the stripping rates picked up. Cortez, and I noticed in the MD&A it said it would be largely complete in mid- 5, so the rates that you're at about, I think it's 13 to 1, is that going to continue until Q2 of 2025? Is that the case?
Anita Sone: and the optimization of the...
Anita Sone: of the actual design criteria, which is recovery and flow and grind size, or grind, the grind bracket and not over grinding it or under grinding it.
Speaker Change: Second question, both for Carlin and Cortez, the stripping rates picked up.
Speaker Change: At Cortez, and I noticed in the MDNA it said it would be largely complete in mid 2025 so the rates that you're at at about I think it's 13 to 1 is that going to continue until Q2 of 2025 is that the case? Yeah, it'll come down. We so look
Mark Bristow: Cortez is for Crossroads and Arturo, and... That's the big focus on getting particularly crossroads sorted out and then in, And we're on top of that, you know, the team has done an excellent job on getting their head around the crossroads challenges, which were largely variations in the actual ore body between oxide and sulfur. Tools & Applications, Chuck Sorrel, Chuck Sorrel, Chuck Sorrel, Chuck Sorrel, Chuck Sorrel, Chuck Sorrel Cloths, Chuck Sorrel Stuff, Rick Goldman, Chuck Sorrel, Chuck Sorrel Stuff, Chuck Sorrel www.jurassicworld.com, Chuck Sorrel,reedingworld.org, Chuck Sorrel Style ??trik Ch VIDEO, Fred Tornow , Chuck Sorrel Video Review, Tony Day, La laufen von Falko, Chuck Sorrel General VIDEO GEDDED, Mark Sonic Life, Chuck Sorrel, Chuck Sorrel, Chuck Sorrel Manufacturer, Chuck Sorrel, Greg Barnes, fåttp fahren, Mark Sorrel, check Dunkerque, Tru dummy statistics, Jacky, Mark Sorrel Crypto Marketing, Fischer Marketing, how to, christian benny tutorials, Chuck Sorrel Di Bismuth, 1982 Currency, Chuck Sorrel, Julian.-MM Weber, www.mahler Companies, Clanson, And so, yes, we'll, it'll come off a little bit, but, you know. Cortez is, in my mind, is in good shape.
Speaker Change: Cortez is for crossroads and Arturo and
Speaker Change: that's the big focus on getting particularly crossroads sorted out and then in
Speaker Change: And we're on top of that.
Speaker Change: You know, the team has done an excellent job on getting their head around.
Speaker Change: The Crossroads Challenges, which.
Speaker Change: were largely variations in the actual ore body between oxide and sulphide.
Speaker Change: or refractory ore.
Speaker Change: And so, yes, it'll come off a little bit, but Cortez is, in my mind, is in good shape.
Mark Bristow: The 7C failure in Gold Quarry Pit is the one that we're wrestling with at the moment. And, you know, that's a pit with a history of failures. And you remember, I think, the 2009 failure, which was the.., sort of clay white part of the pit which they used to call, Um...
Speaker Change: 7c failure in Gold Quarry Pit is the one that we're wrestling with at the moment and you know that's that's a pit with a history of failures and you remember I think the 2009 failure which was the
Speaker Change: sort of clay-like part of the pit which they used to call
Mark Bristow: I think this is phase six. So, so right now we've got a pile of, um.., of Geotex. And really, you've got to go to the Geotex from Arizona and around there, not the Geotex from here, because it's, you know, completely different rocks, young, a lot of clay, a lot of water in the, in the but sidewalls higher hydrostatic pressure.
Speaker Change: I think this is phase six.
Speaker Change: So right now we've got a pile of...
Speaker Change: of geotexts and really you've got to go to the geotexts from Arizona and around there, not the geotexts from.
Speaker Change: Yeah, because it's you know, they're completely different rocks young a lot of clay
Mark Bristow: So we're busy working with that now to redesign that pit. Short term is to be able to get back into the pit at the 7c position and longer term is how does that pit look in the longer term life of mine and how much do you have to lay it back or can you, designed the sidewalls differently by dewatering the pits and that's what we're looking at at the moment. And so that we'll update you more on when we get to the end of the year. So to round out the top five, Turquoise Ridge.
Speaker Change: A lot of water in the...
Speaker Change: pit sidewalls higher hydrostatic pressure. So we're busy working with that now to redesign that pit.
Speaker Change: short term is to be able to...
Speaker Change: Get back into the...
Speaker Change: at the 7C position and longer term is how does that pit look in the longer term life of mine and how much do you have to lay it back or can you...
Speaker Change: design those sidewalls differently by dewatering the pits and that's what we're looking at at the moment. And so that we'll update you more on when we get to the end of the year.
Mark Bristow: Could you just give us a little bit more color on how the rest of the year evolves there? I did notice that the grades in the autoclave dropped and I'm just not sure why that happened with the grades in the underground ramping up. So Turquoise Ridge is all about backfill, and putting in that infrastructure. So we made a conscious decision. To slow down the mining and processing rate, we've got lots of stockpiles. So that's what you see.
Speaker Change: So to round out the top five, Turquoise Ridge, could you just give us a little bit more colour on how the rest of the year evolves there? I did notice that the grades in the autoclave dropped and I'm just not sure why that happened with the grades in the underground ramping up.
Speaker Change: So, Turquoise Ridge is all about backfall.
Speaker Change: and putting in that infrastructure. So we made a conscious decision.
Speaker Change: To slow down the mining and processing rate, we've got lots of stockpiles. So that's what you see. And getting on top of the...
Mark Bristow: And getting on top of the backfill infrastructure, which we've done now, and now it's a case of catching up on the backfill so that we build full flexibility in the Turquoise Ridge mine plan. And the plan is that we will improve all the way up to the end of the year. That infrastructure catch-up plan is working, and we measure it weekly, and so I'm confident that we'll get back there by the end of the year.
Speaker Change: of the backfill infrastructure.
Speaker Change: and which we've done now, and now it's a case of...
Speaker Change: Catching up on the backfill so that we build full flexibility in the Turquoise Ridge mine plan. And the plan is that...
Speaker Change: we will improve all the way up to the end of the year. That infrastructure catch-up plan is working and we measure it weekly and so I'm confident that we'll get back there by the end of the year. We'll have caught up the plan.
Mark Bristow: We'll have caught up the plan, and that's really the big ... And Turquoise Ridge is a very high-grade ore body. It's got some upside opportunities in it, but if you don't keep your backfill up to speed right on the face ... You have problems here. So, and that brings safety issues as well as flexibility in mining. So that's really the driver behind Turquoise. Good morning.
Speaker Change: And that's really the big... And Turquoise Ridge is a very high-grade ore body. It's got some upside opportunities in it. But if you don't keep your backfill up to speed, right on the face, you have problems geotechnically.
Speaker Change: And that brings safety issues as well as flexibility in mining. So that's really the driver behind Turquoise Ridge.
Ralph Profiti: Thanks, Mark. This is Ralph Profiti from 8 Capital. I have two questions. Firstly, can you bring us up to date on your discussions with the Mali government? It seems like some of the peers are inching closer towards something that's more definitive in a positive way. Can you bring us up to date on that? And then secondly, you talked about utilizing Nevada infrastructure on Four Mile, and can you specifically address labor? How have you done in sort of the near term on addressing some of those constraints?
Speaker Change: Good morning.
Ralph Profitti: Thanks, Mark. This is Ralph Profitti from 8 Capital. I have two questions. Firstly, can you bring us up to date?
Ralph Profitti: on your discussions with the Mali government. It seems like some of the peers are...
Ralph Profitti: inching closer towards something that's more definitive in a positive way. Can you bring us up to date on that? And then secondly, you had talked about utilizing Nevada infrastructure on Four Mile and can you specifically address labor? How have you done in sort of the near term on addressing some of those constraints and then eventually when Four Mile does come into
Ralph Profiti: And then eventually, when Four Mile does come into production, how does your long term studies look on the labor constraints? Okay, so, so Marley, I've, you know, in the disclosure, it's pretty well where it is we as you know, we believe in, Sharing the economic benefits of The nation's asset that as mine as we mine no matter how you own it, My belief is that it's all national assets. And so, when the junta took over, there was a view that M?ori should benefit more from.
Ralph Profitti: production. How does your long-term studies look on the labor constraints?
Ralph Profitti: So Marlee, in the disclosure it's pretty well where it is. As you know, we believe in...
Speaker Change: sharing the economic benefits of a nation's asset that as mine as we mine no matter how you own it
Speaker Change: My belief is that it's all national assets. And so when the junta took over, there was a view that Mali should benefit more from
Mark Bristow: It's mining industry. And as you know, there's no other industry that makes bigger contribution to the Mali economy than the mining industry. I've been in it since the very beginning, and and of course we saying it's fine we we would be very happy to do that we need to get down to the nitty-gritty and look at the models we are still paying dividends we paid a dividend two weeks ago, 10 days ago, and we are the biggest contributor into the Mali Treasury.
Speaker Change: it's mining industry and as you know there's no other industry that makes bigger contribution to the Mali economy than the mining industry. I've been in it since the very beginning.
Speaker Change: and and of course we saying that's fine we we would be very happy to do that we need to get down to the nitty-gritty and look at the models we are still paying dividends we paid a dividend
Speaker Change: two weeks ago, ten days ago, and we are the biggest contributor into the Mali Treasury.
Mark Bristow: The question that we have is, we're happy to do that on a percentage basis, so slightly more than 50% for example, that's a good place to be for a government. And also it has to be affordable by the company, that's Lulogon Cotto as a company.
Speaker Change: so
Speaker Change: The question that we have is we're happy to do that on a percentage basis so you know slightly more than 50% for example that's that's a good place to be for a government
Lulogon Kota: and also it has to be affordable by the company, that's Lulogon Kota as a company.
Mark Bristow: And what we are we are anxious about is we don't see any merit in paying huge amounts of future cash now because it just, make the future more difficult to manage. So we need to work it in a transparent way. Our team is engaged with the President's Office plus the Ministry of Finance and Ministry of Mines, and we're working constructively to find a way forward. That's really all I can say, and we have been doing so for quite a while, on the On the question around, Full mile. Please remind me.
Lulogon Kota: And what we are anxious about is we don't see any merit in paying huge amounts of future cash now. Because it just...
Lulogon Kota: makes the future more difficult to manage. So we need to work it in a transparent way. Our team is engaged with the president's office plus the
Lulogon Kota: Ministry of Finance and Ministry of Mines and we're working constructively to find a way forward. That's really all I can say at this stage and we have been doing so for quite a while now.
Lulogon Kota: On the
Lulogon Kota: On the question around
Mark Bristow: Thank you. Thank you. Oh yeah, so we've put a lot of effort into Labour. Labour is.., is critical everywhere today in mining. And we again, we've just been through a restructuring, we took a whole level of management out of, out of Nevada. We are looking at further automation reposition. And the other thing is, you know, you saw us buy, invest in a whole lot of new equipment, mobile equipment, particularly. We are running a trial on automation, which we will then roll out across the complex, and and we've also challenged the management on talking up the court, because every time you have, you don't use the equipment efficiently. You end up with two operators, and that means two operators, it means six operators.
Lulogon Kota: 4-mile
Speaker Change: Just remind me
Speaker Change: Oh yeah, so we've put a lot of effort into labor. Labor is...
Speaker Change: is critical everywhere today in mining.
Speaker Change: and we again we've just been through a restructuring we took a whole level of management out of
Speaker Change: out of Nevada. We are looking at further automation, repositioning, and the other thing is, you know, you saw us buy, invest in a whole lot of new equipment, mobile equipment particularly.
Speaker Change: We are running a trial on automation, which we will then roll out across the complex.
Speaker Change: And we've also challenged the management on...
Speaker Change: parking up equipment because every time you have you don't use the equipment efficiently
Speaker Change: You end up with two operators, and that means two operators and means six operators.
Mark Bristow: And so you take out a piece of equipment and suddenly you have that requirement and you can reallocate those people to different positions. So we have a training mine now for underground miners, for open pit miners, and for protesters. And we are still, we could do with a little more capacity, which we are investing in, we're expanding that capability because, In the US, the concept of, Technical skills is not the same as in Europe and and and the colonies or ex-colonies like South Africa and Australia.
Speaker Change: And so you take out a piece of equipment and suddenly you have that requirement and you can reallocate those people to different positions.
Speaker Change: So we have a training mine now for underground miners, for open pit miners, and for processors, processing.
Speaker Change: And we are still, we could do with a little more capacity, which we are investing and we're expanding that capability. Because in the U.S., the concept of...
Speaker Change: technical skills is not the same as in Europe and the colonies or ex-colonies like South Africa and Australia.
Mark Bristow: And so what we're doing is building that skill into the workforce. And we've, during COVID, we got to a 25% turnover rate; we're way back down now. And, and, and again, as we've rotated out, people, the people, our retention of workers that go through the training mines is very high in the nine-to-five. Because, as you can imagine, you go into a big operation like Nevada, and you're not fully trained to operate in these big underground mines or these huge open pits.
Speaker Change: and so what we're doing is building that skill into the workforce and we've, during COVID, we got to a 25% turnover rate.
Speaker Change: We're way back down now, and again, as we've rotated out, people, the people, our retention of...
Speaker Change: workers that go through the training mines are very high in the 90s.
Speaker Change: Because, as you can imagine, you're going to a big operation like Nevada, and you're not fully trained to operate in these big underground mines or these huge open pits.
Mark Bristow: It's it's it's it's um It's it's it's it's it's, It's a. It's hard to do, you know, and and but when you know what to do and you're well trained in it the job is so much easier so so our investment in people has been uh you know, And we, and the other thing, I mean it's, you know, with the lithium market now collapsed. Of course, we are also the source of all highly qualified miners in the USA.
Speaker Change: It's a...
Speaker Change: hard to do you know and and but when you know what to do and you well trained in it the job is so much easier so so our investment in people has been you know
Speaker Change: And we and and the other thing I mean, it's you know with the lithium market now collapsed
Speaker Change: because we remember we also the source of all highly qualified miners in the USA.
Mark Bristow: Because we are the biggest miner in the USA, that pressure has come off, and I think as you see, as we have got Nevada to perform. Of course, you keep people in too. People don't leave when you're starting to perform.
Speaker Change: because we are the biggest miner in the USA.
Speaker Change: That pressure has come off and and I think as you see and as we have got Nevada to perform
Mark Bristow: So, all around, Nevada is in a very different place. And it has been changing all the time, as we work to make it an owner-led, , , , , , , Steve Green, TD Securities. Just to stay on four mile, you mentioned that you intend to be in a position to give pre-fees options by year end or have pre-fees options. Does that mean you intend to update the market with pre-fees level numbers like CapEx and size therefore?
Speaker Change: Of course, you keep people in too. People don't leave when you're starting to perform. So, all around, Nevada is in a very different place. And it has been changing all the time as we work to make it an owner-led...
Speaker Change: style of business rather than a corporation which it used to be.
Speaker Change: Steve Green, TD Securities. Just to stay on 4 Mile, you mentioned that you intend to be in a position to give pre-fees options by year-end or have pre-fees options. Does that mean you intend to update the market with pre-fees level numbers like CapEx and size?
Mark Bristow: More options now, right now is access, because, you know, the one thing about Gold Rush is the accessibility, the twin declines were exploration declines, which you made into operational declines now, and that they, The daylight half way up a hill, and what you'd want is if you're going to put in access to to, um.., all bodies that are underneath a mountain. You should try and get it at the valley level. And so, you know, we're looking at different options. Can we access from Cortez itself, there's an option there.
Speaker Change: More options now, right now is access.
Speaker Change: Because, you know, the one thing about Gold Rush is the accessibility, the twin declines were exploration declines, which you made into operational declines now. And they daylight halfway up a hill.
Speaker Change: And what you want is if you're going to put in access to...
Speaker Change: All bodies that are underneath a mountain, you should try and get it at the valley level. And so, you know, we're looking at different options.
Mark Bristow: Can we access it from the north where the metallurgical infrastructure is? And what is it, you know, what's the most optimum way to integrate four miles infrastructure with gold rushes in infrastructure, because it's a continuation of the same old body. What make.., for a while. Is that it's in a big, Metamorphic Halo, so it's brittle.
Speaker Change: Can we access from...
Speaker Change: Cortez itself is an option there. Can we access it from the north where the metallurgical infrastructure is?
Speaker Change: And what's the most optimum way to integrate four miles infrastructure with Gold Rush's infrastructure because it's a continuation of the same ore body?
Speaker Change: What makes
Speaker Change: four-mile is that it's in a big
Mark Bristow: And so the style of mineralization has changed to a breccia, the classic carlin breccia, which is bigger, bulkier, higher grade. It's interesting some of we also are getting some of these flatter, planar ore bodies occurring as well, which is what we didn't expect. But it's a very, and for me, even watching it evolve, when you look at that section, that section really does tell you how connected the geology has become as we've drilled these holes.
Speaker Change: metamorphic halo so it's brittle and so the the style of mineralization has changed to a breccia the classic carlin breccia which you know is bigger bulkier higher grade
Speaker Change: it's interesting some of we also are getting some of these flatter
Speaker Change: Planar ore bodies occurring as well, which is what we didn't expect, but it's a it's a
Speaker Change: For me, even watching it evolve, when you look at that section, that section really does tell you how connected the geology has become as we've drilled these holes. It's really exciting.
Mark Bristow: So it's a really exciting ore body, not to be underestimated at all. Presumably, you'll want to let this play out for a while before making a decision on vending it. You know, I mean, I've always, as you know, I'm a very open, transparent person.
Speaker Change: already, not to be underestimated at all.
Speaker Change: Presumably, you'll want to let this play out for a while before making a decision on bending it.
Mark Bristow: So, you know, we own it, as Graham says. It makes sense for, you know, to actually, and it has the right to Nevada infrastructure, and the conversation will continue in a transparent way. And when we feel that we get to something, if we do, that's of value, proper value, we'll make that decision. But to your point, we've got a way to go before we get there. And the first thing is to try and get a grip of exactly how big this prospect is.
Speaker Change: You know, I've been a, I've always, as you know, I'm a very open, transparent person so, you know, we own it as Grant says.
Speaker Change: It makes sense and it has the right to Nevada infrastructure and the conversation will continue in a transparent way. And when we feel that we get to something, if we do, that's of value.
Speaker Change: proper value we'll make that decision but to your point we've got a way to go before we get there and the first thing is to try and get a grip of exactly how big this prospect is
Mark Bristow: Anita again, you made a comment when you were talking about the four mile bend in that as long as a joint venture meets a return on invested capital, did you mean the four mile meeting the return on invested capital or the joint venture itself, the whole Nevada gold mines? No, no, just the four mile and it's a specific number. It's a blatant number. I can't remember the actual number.
Anita Sone: Anita again.
Speaker Change: You made a comment when you were talking about the four-mile bend-in that as long as a joint venture meets a return on invested capital, did you mean the four-mile meeting the return on invested capital or the joint venture itself, the whole Nevada gold mines? No, no, just the four-mile and it's a specific number.
Speaker Change: It's a blended number. I can't remember the actual number.
Mark Bristow: 15% IRR, spot and consumption. It will not. The University of Maryland College of Agriculture and Livestock. I've heard a lot from it.
Speaker Change: The IRR is a 15% IRR. 15% but effectively using a combination of two-year history, spot and consensus.
Speaker Change: It will not struggle to meet that.
Operator: Okay, can we leave this room and move? to the call. Operator, over to you. Thank you. To join the question queue, you may press star and one on your telephone keypad.
Speaker Change: Okay, can we leave this room and move?
Speaker Change: to the coal.
Speaker Change: Operator, over to you.
Speaker Change: Thank you. To join the question queue, you may press star and one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys.
Operator: You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw. Daniel Major with UBS. Please go ahead. Hi Mark, Hi Graham, can you hear me OK? Hello Daniel, I can hear you.
Speaker Change: Major with UBS. Please go ahead.
Daniel Major: Hi, yeah, thanks for the questions. Yeah, a couple of questions. The first one on the cost profile in Nevada, obviously there's been a number of questions on it already, but just to be clear, is the main delta in Turquoise Ridge, it looks like that unit cost needs to come down a lot, but is that the main delta to get towards, you know, back into the guidance range as you've completed the autoclave maintenance and the backfill infrastructure, is that the main moving part?
Speaker Change: Hi Mark, hi Graham. Can you hear me OK? Hello Daniel, I can hear you.
Mark: Hi, yeah, thanks for the questions.
Major: Yeah, couple of questions. The first one on the cost profile in Nevada, obviously there's been a number of questions on it already, but just to be clear.
Speaker Change #102: Is the main Delta in Turquoise Ridge, it looks like that unit cost needs to come down a lot, but is that the main Delta to get back into the guidance range as you've completed the autoclave maintenance and the backfill infrastructure? Is that the main moving part?
Daniel Major: I think we've, I mean, Turquoise Ridge, the autoclave maintenance is in good shape now. The process is, you know, Good. I think the oil and sustaining cost drivers are still the extra infrastructure and backfill that we're putting in right now, sustaining capital. And so that'll come off.
Speaker Change #103: Yeah, I think we've, I mean, Turquoise Ridge, the autoclave maintenance is in good shape now. The process is, you know...
Speaker Change #103: I think the oil and sustaining cost drivers are still the extra infrastructure and backfill that we're putting in right now, sustaining capital.
Mark Bristow: And, and you're, you're right, once we get that, mining rate done and that's you know turquoise has got a big you just do the math the the numbers uh that need to the production increase is quite high and that will definitely drive the unit costs down um, So that's really the big driver and, in turquoise. Okay, thanks. And then just to confirm, yeah, so the key assets are coal and turquoise rich, and then of course, Pablo Villegas, that's also another key driver. Cool, thanks. And the second question I had on tax, you recognize $137 million tax adjustment around proposed settlements in Chile. Are they expected to convert into a cash payment at some point?
Speaker Change #103: and so that'll come off and and you you're right once we get that
Speaker Change #103: mining rate done and that's, you know, Turquoise Ridge has got a big, you just do the math, the numbers that need to, the production increase is quite high and that will definitely drive the unit costs down.
Speaker Change #103: So that's really the big driver in Turquoise Ridge.
Speaker Change #104: Okay, thanks. And then... Just to confirm, yeah. So the key assets are coal and turquoise rich, and then, of course, Pablo Villegas. That's also another key driver.
Speaker Change #105: cost for the year.
Speaker Change #106: Cool, thanks.
Speaker Change #107: The second question had on tax. You recognize $137 million...
Speaker Change #108: tax adjustment around proposed settlements in Chile. Are they expected to convert into a cash payment at some point? Can you just give us any cash implications around that tax charge you recognized?
Daniel Major: Can you just give us any cash implications around that tax charge you recognized? Thanks, Dan. Yes, that's correct. Yeah. So these are...
Graham Shuttleworth: This relates to the sale of the Zoldovar asset in 2015, as we've disclosed for some time now we have been in discussions with the government there on, The Interpretation that they had, which was for a claim that was significantly higher, we've now reached a In principle agreement to settle that we're busy finalizing that agreement which we expect to get done, in the third quarter. So yes, that should translate into a cash payment this year.
Speaker Change #109: Thanks, Dan. Yes, that's correct. Yeah, so these are...
Speaker Change #110: This relates to the sale of the Zoldovar acid in 2015.
Speaker Change #110: And as we've disclosed for some time now we
Speaker Change #110: have been in discussions.
Speaker Change #110: with the government there on the interpretation that they had, which was for a claim that was significantly higher.
Speaker Change #110: we've now reached a
Speaker Change #110: in principle agreement to settle that. We're busy finalizing that agreement, which we expect to get done in the third quarter. So yes, that should translate into a cash payment this year.
Graham Shuttleworth: And Dan, I think it's a very good point you make where you know, if you go back to 2019, we when we looked at this business, it had lots of challenges, to it. You know, Tanzania wasn't operating. Argentina was under threat. Papua New Guinea was. You know, trying to get it's renewals. Ricker Dick was in arbitration.
Speaker Change #110: And Dan I think it's a very good point you make where you know if you go back to 2019 we when we looked at this business it had lots of challenges
Speaker Change #111: Stuart, you know, Tanzania wasn't operating, Argentina was under threat, Papua New Guinea was, you know, trying to get its renewals.
Mark Bristow: We had Chile, and then we had a pile of closure assets as well that were just being kicked down the road. And where we are today is that, you know, we've, as our boys done in my career, deal with the liabilities, and then you free up and there's no better time to deal with the liabilities when you've got, Big Commodity Product. So we've really focused on those liabilities and we're on top of them. We've we've done our first two safe closure tailings facilities or closure sites.
Speaker Change #111: We had Chile, and then we had a pile of closure assets as well, that were just being kicked down the road.
Speaker Change #112: And where we are today is that, you know, we've, as our boys done in my career, deal with the liabilities and then you free up and there's no better time to deal with the liabilities when you've got...
Speaker Change #112: big commodity process.
Speaker Change #112: So, we've really focused on those liabilities and we're on top of them, we've done our first two safe closure tailings facilities or closure sites.
Mark Bristow: We're going to do another eight this year. Um, um, or that's the target of six to eight closure sites, safe closure. And so, one of my focuses is non-operating costs within the organization, and we're driving those costs down, and that really drives the margin, and I took a position that we're not going to kick that can down the road.
Speaker Change #112: We're going to do another eight this year.
Speaker Change #112: or that's the target, six to eight closure sites, safe closure and we Perina comes to full closure early next year and we've engineered that and so so one of the my focuses is the
Speaker Change #112: non-operating costs within the organization and we're driving those costs down and that really drives the margin.
Speaker Change #112: and and we have and I took a position
Mark Bristow: And when you stack up Barrick to its peers, we are on the road, on the trajectory to have very little liabilities associated with non-operating assets. And that's the focus that we've always had. So again, in the mix.
Speaker Change #112: that we're not going to kick that can down the road. And when you stack up Barrick to its peers...
Speaker Change #112: We are on the road, on the trajectory, to have very little liabilities associated with non-operating assets. And that's the focus that we've always had. So, again, in the mix.
Mark Bristow: Let me just remind you, we... We didn't pay a premium for any of the assets we've talked about today. We've got very significant assets, which I've shared with you again. We've got operating assets on top of that which are significant with life of mine and margin opportunity. We have dealt with the challenges. We've got all the mines up and running. Porgera is, you know, we turned on the last of the autoclaves last week.
Speaker Change #112: Let me just remind you we
Speaker Change #112: We didn't pay a premium for any of the assets we've talked about today. We've got very significant assets, which I've shared with you again.
Speaker Change #112: We've got operating assets on top of that which are significant with life-of-mine and margin opportunity.
Speaker Change #112: We have dealt with the challenges, we've got all the mines up and running. Porgras, you know, we turned on the last of the autoclaves last week, so all the autoclaves are operating in Porgras and
Mark Bristow: So all the autoclaves are operating in Porgera. And... We've got a couple of non-co-assets that, you know, we might or might not.., bring to account over the next short while and then we have been dealing with these liabilities. Chile, of course, and Chile is rapidly becoming coming an opportunity as we deal with those legacy issues both in the form of Pascualama and and Zelda Vaughn.
Speaker Change #112: We've got a couple of non-co-acids that, you know, we might or might not...
Speaker Change #112: bring to account over the next short while. And then we have been dealing with these liabilities, Chile of course, and Chile is rapidly becoming an opportunity as we deal with those legacy issues, both in the form of Pascualama and
Mark Bristow: And, and, and then Peru Perina that's a big chunk of non-operating cost that'll come out of our, Cash Flow or Cost Flow, And so, you know, my view is that, you know, into next year, we a different company again, as we were from 23 to 24. And, and, and very quickly, you've got and that's why this quarter is so significant. Because you got a flat cost.
Speaker Change #113: and Zelda and and and then
Speaker Change #113: Peru, Perina, that's a big chunk of non-operating cost that will come out of our
Speaker Change #113: cash flow or cost flow.
Speaker Change #113: And so, you know, my view is that, you know, into next year we're a different company again, as we were from 23 to 24, and very quickly you've got, and that's why this quarter is so significant, because you've got a flat cost.
Mark Bristow: And we caught all the margin in the commodity price, which is what, that's the first step in our.., our future strategy and that is to sweat these out. And as soon as you get on top of that, you can manage the, the investment in those closure sites. So you can, you know, we are compliant with GIS TM. We've got no nothing that's, you know, dangerous in our portfolio.
Speaker Change #113: and we caught all the margins in the commodity price which is what that's the first step in our
Speaker Change #113: future strategy, and that is to sweat these assets.
Speaker Change #113: And as soon as you get on top of that, you can manage the...
Speaker Change #113: the investment in those closure sites. So you can, you know, we are compliant with GISTM We've got nothing that's, you know, dangerous in our portfolio. And so we can start managing non-operating
Mark Bristow: And so we can start managing our non operating costs as we go forward. So that's where the company is today. Great, thanks.
Speaker Change #113: costs as we go forward. So that's where the company is today.
Daniel Major: And just one more, if I could, and it's just coming back to the discussion on the buyback and the dividend. I totally understand the opportunistic logic of the 50 million. But if we look at go forward basis, should we just assume that you're going to be opportunistic, but from a modelling standpoint, let you run the balance sheet down towards a net cash position before factoring any kind of meaningful additional buybacks in the second half?
Speaker Change #114: Great, thanks. And just one more if I could, and this is just coming back to the discussion on the buyback and the dividend. I totally understand the opportunistic logic of the $50 million, but if we look at a go-forward basis, should we just assume that you're going to be opportunistic, but from a modeling standpoint, let you run the balance sheet down towards a net cash position before factoring any kind of meaningful
Daniel Major: No, we are going to be buying back on a considered fashion, building on what we did last quarter. And so we'll manage it, Graham and I'll manage it. We have got, you know, we share the strategy with our board, everyone's happy with what our plans are. And, It's the same time we mindful of a demand as we go into a capital intense phase. And again, we can manage all that within our balance sheet. So we don't want to get to it. And the one thing, Dan, that we've always done is stuck to our own rules.
Speaker Change #113: additional buybacks in the second half.
Speaker Change #113: No, we are going to be buying back on a considered fashion, building on what we did last quarter. And so, we'll manage it, Graham and I will manage it. We share the strategy with our board, everyone's happy with what our plans are.
Speaker Change #113: At the same time, we're mindful of a demand as we go into a capital intense phase. And again, we can manage all that within our balance sheet. So we don't want to get to it. And the one thing, Dan, that we've always done.
Mark Bristow: Some of our peers don't do that. They say one thing, do another. But we are very clear about how we allocate capital. As a management team, we reflect on it every week. We look at ways to be able to, And.., intervene when the when the and and you know through my career I've had to deal with a number of short positions in the in the stock and I don't think, There are not too many people who would take a big short position in Barrick today. You want to add to that, Graham?
Speaker Change #113: It's stuck to our own rules.
Speaker Change #113: Some of our peers don't do that. They say one thing, do another. But we are very clear about how we allocate capital. As a management team, we reflect on it every week. We look at ways to be able to...
Speaker Change #113: Uh, uh, um, [inaudible]
Speaker Change #115: intervene when the when the and and and you know through my career I've had to deal with a number of short positions in the in the stock and I don't think
Speaker Change #115: There are not too many people who would take a big short position in barracks.
Graham Shuttleworth: Yeah, I mean, I'm just down just to reiterate. We have an exceptionally strong balance sheet, notwithstanding that. Yeah, we've got these big capital growth projects ahead of us. And that's the position we like to maintain. But even if we do continue to buy back shares, as Mark says, on a measured basis, We'll continue to have very low debt to EBITDA ratios by any metric.
Speaker Change #115: today.
Speaker Change #115: Do you want to add to that, Graham?
Graham: Yeah, I mean, I'm just down just to reiterate.
Graham: We have an exceptionally strong balance sheet, notwithstanding that we've got these big capital growth projects ahead of us, and that's the position we like to maintain. But even if we do continue to buy back shares, as Mark says, on a measured basis,
Mark: We'll continue to have very low debt to EBITDA ratios by any metric. So, we are afforded the opportunity to take advantage of what we see as exceptionally good value in the stock, but still on a very measured basis.
Graham Shuttleworth: So we are afforded the opportunity to take advantage of what we see as exceptionally good value in the stock but still on a very measured basis. Very clear, thanks a lot. The next question comes from Bob Brackett with Bernstein Research. Please go ahead. Good morning.
Speaker Change #116: Very clear, thanks a lot.
Speaker Change #116: The next question comes from Bob Brackett with Bernstein Research. Please go ahead.
Bob Brackett: Just a couple of questions related to the feasibility studies that we're looking forward to seeing by the end of the year. Anything you can tease on those feasibility studies? In the MD&A, you talked about the approximately $2 billion of CapEx around Lumuana at 50 million tons of processing. Anything to say around Recadec?
Bob Brackett: Good morning. Just a couple questions related to the feasibility studies that we're looking forward to seeing by the end of the year. Anything you can tease on those feasibility studies? In the MD&A you talked about the approximately $2 billion of CapEx around Lumuana at 50 million tons of processing.
Mark Bristow: And what are the things that would worry you between now and the release of the feasibility studies in terms of moving these projects forward? So I would say, if you don't worry about capital projects, they always go wrong. And many times if you worry about it and do nothing, then they also go wrong. But Le Mans is in a good place. And you know, and Le Mans washes its face at the expansion at $3 a pound. So it's, you know, there's not many copper assets that do that.
Speaker Change #118: Anything to say around REC-A-DIC and what are the things that would worry you between now and the release of the feasibility studies in terms of moving these projects forward?
Speaker Change #119: I would say, if you don't worry about capital projects, they always go wrong. And many times if you worry about it and do nothing, then they also go wrong.
Speaker Change #119: But Le Mans is in a good place.
Speaker Change #120: And, you know, La Mina washes its face at the expansion at $3 a pound, so there are not many copper assets that do that. And as you know, the copper industry has been saying, jack the copper price up and we'll develop our assets.
Mark Bristow: And as you know, the copper industry has been saying jack the copper price up and we'll develop our assets. And so, and that's an expansion. You know, we've got the one circuit, we're effectively duplicating that circuit. And so we don't see the big focus on the minor is the fleet and the efficiency of mining and the cost of mining.
Speaker Change #120: And so, and that's an expansion. You know, we've got the one circuit, we're effectively duplicating that circuit.
Speaker Change #120: And so we don't see, the big focus on Lamana is the fleet.
Mark Bristow: That's our focus. And we've got a new fleet, we'll be expanding that fleet. And everything that we've we monitoring at the moment, we're comfortable with our assumption, and then Enrica Dick. You know, right now we are in the final negotiations of long lead items, looking at numbers. And there's no material change in our original estimate. And by the way, we're going to do a webinar on Lemoana in 11th of September, to share sort of some color on Lemoana as we did with Rikidex, and that'll that'll free us up to spend a little bit more time on Rick O'Deck at Investor Day, in November.
Speaker Change #120: and the efficiency of mining and the cost of mining. That's our focus.
Speaker Change #120: and we've got a new fleet, we'll be expanding that fleet and everything that we're monitoring at the moment, we're comfortable with our assumptions.
Enrica Dick: And then Enrica Dick
Enrica Dick: You know right now we are in the final negotiations of long lead items looking at numbers
Speaker Change #122: And there's no material change in our original estimate. And by the way, we're going to do a...
Enrica Dick: a webinar on
Speaker Change #123: Lemoina in 11th of September to share sort of some color on Lemoina as we did with Rikidec and that'll that'll free us up to spend a little bit more time on Rikidec at Investor Day.
Mark Bristow: So, but on the record too, you know, there's been swings and roundabouts. We've made very good progress with our water strategy, our infrastructural strategy, Graham's progressing the financing options. You know, I think everything is, there's nothing there that's not in line with our original assumptions that we shared with you going forward. Do you want to add to that?
Speaker Change #123: in November, so...
Speaker Change #123: But on record it too is you know, there's been swings and roundabouts
Graeme: We've made very good progress with our water strategy, our infrastructural strategy. Graeme is progressing the financing options.
Graeme: You know, I think everything is, there's nothing there that's not in line.
Speaker Change #125: with our original assumptions that we shared with you going forward. Do you want to add to that?
Graham Shuttleworth: I think that's a good summary. I mean, there are some what I would call design changes that have come through the feasibility as you would expect. So for example, you know, we're compared to the original feasibility we're anticipating using rail. And so there's infrastructure associated with that. But there are also benefits of that coming through in the financial model. So all of that will be will be showcased at the end of the year when we complete the feasibility study. But we're going to do a good update in September. You'll get some color on it.
Graeme: I think that's a good summary. I mean, there are some, what I would call, design changes that have come through the feasibility, as you would expect.
Speaker Change #126: For example, compared to the original...
Speaker Change #127: Feasibility, we're anticipating using rail and so there's infrastructure associated with that But there are also benefits of that coming through in the financial model. So all of that will be will be Showcased at the end of the year when we complete the feasibility study
Speaker Change #127: We're going to do a good update in September. You'll get some color on it.
Mark Bristow: Yes, so the Moana will be September and then obviously with the investor day in November there'll be some more color out there and the final feasibility will come out in the beginning of the new year. We have a mock day. What kind of drill density are you looking for to get to be indicated in the inferred categories by your instructor?
Speaker Change #127: Yes. Sorry, that's in La Moina. La Moina will be September, and then obviously with the Investor Day in November, there'll be some more colour there, and the final feasibility will come out in the beginning of the new year.
Speaker Change #127: Misha.
Misha: We have a mock day.
Speaker Change #129: I'd like to ask a follow-up on 4-mile. What kind of drill density are you looking for to get to the indicated and the inferred categories by your end? Oh, no, we're not going to be there by your end. So we'll be some of the way there, but not full. I'm not sure we can answer that question yet.
Mark Bristow: Oh no, we're not going to be there by the end. So, um, we'll be some of the way there, but not for, I'm not sure we can answer that question yet. Simon, do you want to add to that? What drill density?
Simon Bottoms: I think we know where we've got to get to, but that's still some time off. We know what we're targeting, so indicated we'd be targeting in the region of 70 to 75 meters based on the current geological models, but that's being reviewed through the course of the preliminary economic assessment at the moment. The update we're targeting for the year-end will really be an inferred resource update and a view on the larger potential of the project, as well as narrowing down, as Mark was alluding to earlier, some of the different options that we will focus on within the PE feasibility. Anybody else on the telephone?
Simon: Simon, do you want to add to that? What drill density? I think we know where we've got to get to, but that's still some time off. Yeah, isn't it?
Simon: We know what we're targeting, so it's indicated we'd be targeting in the region of 70 to 75 meters based on the current geological models, but that's being reviewed through the course of the preliminary economic assessment at the moment. The update we're targeting for the year-end will really be an inferred resource update and a view on the larger potential of the project.
Simon: with, as well as narrowing down, as Mark was alluding to earlier, some of the different options that we will focus on within the pre-feasibility study.
Simon: Thank you for watching this video.
Operator: The next question comes from Mike Parkin with National Bank. Please go ahead. Hi, guys. Thanks for taking my question. Congrats on the good quarter. I have a question on the Thiebaud Deco relocation work.
Speaker Change #130: Anybody else on the telephone?
Speaker Change #130: The next question comes from Mike Parkin with National Bank. Please go ahead.
Mike Parkin: Hi guys, thanks for taking my question and congrats on the good quarter. I just have a question on the Thiebaud VAO relocation work. It seems like everything is off to a good start. You've got quite a few things.
Mike Parkin: It seems like everything's off to a good start. You've got quite a few things, going on. Could you just remind us what is the critical path there? Is it finishing the town and relocating the peoples or is there something else? That's kind of the main item to stay two eyes on. Of course, the preference is to relocate the key communities up front so that you don't end up trying to do heavy earthworks and have communities, you know, moving through or around the footprint.
Speaker Change #132: going on. Could you just remind us what is the critical path there? Is it finishing the town and relocating the peoples or is there something else that's kind of the main item to stay two eyes on?
Speaker Change #133: Of course the preference is to relocate the key communities up front so that you don't end up
Speaker Change #134: Trying to do heavy...
Speaker Change #134: earthworks and and have communities.
Mark Bristow: And so I was there just the other day. We've got a couple of hundred houses now in construction and we're adding to them all the time. We are working with the communities and we'll relocate the communities on a priority basis, and that's really moving people from sort of rural areas into an urban situation and with it comes food security and so it's quite a complex, and it comes with schools and... Community Centres and everything else that goes in an integrated community, from the... The geotech, the next step in this process is the completion of the feasibility of the dam itself. And that's due this quarter.
Speaker Change #135: you know moving through or around the footprint and so I was there just the other day we've got a couple of hundred houses now in construction and they and we're adding to them all the time.
Speaker Change #135: We are working with the communities and we'll relocate the communities on a priority basis.
Speaker Change #135: and that's really moving people from sort of rural areas into an urban situation and with it comes food security and so it's quite a complex and it comes with schools and
Speaker Change #135: community centers and everything else that goes in an integrated community.
Speaker Change #135: The
Speaker Change #136: The next step in this process is the completion of the feasibility of the dam itself and that's due this quarter.
Mark Bristow: So, That'll be the next big step. Right now, we're expecting to bring the dam into production at the back end of 2027 or early 2028, so that's...
Speaker Change #136: That'll be the next big step. Right now we're expecting to bring the dam into production at the back end of 2027, early 2028, so that's...
Mark Bristow: Yes, we still well within our, plans, and right now there's, you know, no emerging critical pot. I think everything is as in this phase of a capital project, everything, Assumed Critic. So, are you having any issues with- Attorney General, and theclearingouvenues.org, like do some sort of paperwork to know who you have to deal with versus some of the people trying to be strategically advantageous of the situation. So Mark, we always have that, you know, you have people who exploit the opportunity. Nowadays, satellite imagery is very helpful in that, in managing who was there and who wasn't.
Speaker Change #136: We're still well within our plans and right now there's no emerging critical path.
Speaker Change #137: I think everything is, in this phase of a capital project, everything is.
Speaker Change #137: assumed critical.
Speaker Change #138: Who are you having any issues with?
Speaker Change #139: suddenly new regional residents, you know, trying to capitalize on getting a new house like we've heard in the past and other certain situations, mostly in Africa. Any kind of activity there? Do you guys have a pretty good sense of?
Speaker Change #139: do some sort of paperwork to know who you have to deal with versus some of the people trying to be strategically advantageous of the situation.
Speaker Change #139: So, Mark, we always have that. You know, you have people who exploit the opportunity. Nowadays, satellite imagery is very helpful in that, in managing who was there and who wasn't.
Mark Bristow: It's pretty hard to deny a picture [inaudible] I think, but it's part of the whole social engagement is dealing with, you know, people who, who exploit the situation, who take the opportunity to sort of claim things. And we work with that all the time. It's, you know, this is a community we're going to live with for a very long time. So we, we manage that. So the positive side of of where we are today.
Mark: It's pretty hard to lie with a, you know, to deny a picture.
Mark: I think that it's part of the whole social engagement is dealing with
Mark: Um, you know, people who-
Mark: who exploit the situation, who take the opportunity to sort of claim things, and we work with that all the time. It's, you know, this is a community we're going to live with for a very long time, so we manage that. So the positive side of
Mark Bristow: As you know, we went through a very extensive process to select the, Civil Society, with the Catholic Church, you know, the whole, and under the lease agreement that we operate... Pablo Verhoeven is the government has a responsibility to participate in the relocation and payment thereof. So it's a joint process. But right now, you know, our community people that are working with the relocation committees that are set up for each community, and then various other authorities and from time to time, as you point out, other people who are wanting to participate in the benefit.
Mark: of where we are today. As you know, we went through a very extensive process to select the site with government, with civil society, with the Catholic Church, you know, the whole katuki.
Mark: and and under the lease agreement that that we operate
Mark: Pueblo Viejo, the government has a responsibility to participate in the relocation and payment thereof. So it's a joint process.
Mark: But right now, you know, it's our community.
Mark: Um...
Mark: people that all are working with the.
Mark: relocation committees that are set up for each community and then various other authorities and from time to time as you point out other people who are wanting to participate in the benefits.
Mark Bristow: All right. Thanks very much, Mark. The next question comes from Tanya Jakusconek with Scotiabank. Please go ahead. Oh goody, thank you for taking my questions. Good afternoon, everyone.
Mark: The next question comes from Tanya Dukuskinec with Scotiabank. Please go ahead.
Tanya Jakusconek: I just wanted to come back to just how the rest of the year will go due to the elimination of the contract workers as you go into self-mining. Is that a correct understanding?
Tanya Dukuskinec: Oh goody, thank you for taking my question.
Tanya Dukuskinec: Good afternoon everyone. I just wanted to come back to just how the rest of the year
Tanya Dukuskinec: and I just wanted to make sure I understood correctly. So just on the Nevada Goldmines, which is gonna be driven by Carlin, you know, better grade than Turquoise Ridge as well with better grade. Am I to assume that
Speaker Change #141: The volume is going to come by you processing those higher grade stockpiles at Turquoise Ridge as you've worked on the case fill in the underground and then
Speaker Change #142: The cost reduction also comes in not only volume, but due to the elimination of the contract workers as you go into self-mining. Is that a correct understanding?
Speaker Change #142: Broadly, yes.
Mark Bristow: Yes, broadly. The throughput is not, you know, it gets tempered because... What drives the grade is underground and less open pit ore. So that impacts the throughput numbers as well. But broadly, you're right. It's really a grade.
Speaker Change #142: Yes, broadly. The throughput is not, you know, it gets tempered because...
Speaker Change #142: What drives the grade is underground and, uh...
Speaker Change #142: and less open-pit ore, so that impacts the throughput numbers as well, but broadly you're right, it's really a grade, and we're talking about Carlin and Turquoise Ridge in particular.
Mark Bristow: I mean, talking about Collin and Turquoise Ridge in particular. Okay. And have you seen the pickup? Because it's a month and a half now into the quarter into Q3. Have you seen the pickup in the grade? No.
Speaker Change #143: Okay and have you seen the pickup because it's a month and a half now into the quarter, into Q3, have you seen the pickup in the grades?
Mark Bristow: Thank you for that. And just similarly at Pueblo Viejo, I just wanna make sure I understand, and thank you so much for that slide with the 78% recovery. I'm just looking at it right now.
Speaker Change #143: Door.
Speaker Change #143: okay
Speaker Change #144: Thank you for that. And just similarly at Pueblo Viejo.
Speaker Change #145: I just want to make sure I understand, and thank you so much for that slide with the 78% recovery.
Mark Bristow: Sorry, 79 into Q3 and then 80 into Q4. You said you've got the throughput where you need it to be and you're just working on the grind portion and the recovery. Again, a month and a half into the quarter, are you seeing that recovery? Yes, I would say that, Tanya, as you know, we're seeing it more than we're not seeing it. So it's still very much part of, this is a refinement. I think that's what we've got to get across. This is not a magic box.
Speaker Change #146: I'm just looking at it right now.
Speaker Change #147: 79 into Q3 and then 80 into Q4.
Speaker Change #148: You said you've got the throughput where you need it to be, and you're just working on the grind portion and the recovery. Again, a month and a half into the quarter, are you seeing that recovery?
Speaker Change #148: Yes, I would say that, Tanya, as you know, we're seeing it more than we're not seeing it.
Speaker Change #149: So, it's still very much part of, this is a refinement, I think that's what we've got to get across. This is not a magic box.
Mark Bristow: This is, you know, this is sag mulling at its most challenging. We've got a very big single sag mull that's joined a sag ball mull flow sheet, and and we've just settled with the construction of the new conveyor belt so we've got the extra crushing capacity. And now it's about making sure that we get the grind parameters right. And when we get the grind right, we get the float right. When we get the float right, we can feed the autoclaves appropriately. And the whole flow sheet logic of PV is to increase the sulfur content of the feed into the autoclaves, which is really drives the fuel content.
Speaker Change #149: This is, you know, this is sag mulling at its most challenging. We've got a very big single sag mull that's joined a sag ball mull flow sheet.
Speaker Change #149: And we've just settled with the construction of the new conveyor belt, so we've got the extra crushing capacity.
Speaker Change #149: and now it's about making sure that we get the grind parameters right.
Speaker Change #149: And when we get the ground right, we get the float right. When we get the float right...
Speaker Change #149: We can feed the water claves.
Speaker Change #149: appropriately and and and and the whole flow sheet logic of PV is to increase the sulfur content of the feed into the autoclaves which is really drives the fuel content.
Mark Bristow: And that drives the oxidation. And what we have done in the interim, which I shared last time, is we did create a variance to that, so we can still feed, run-of-mine ore into some of the autoclaves. We can reconfigure them to take run-of-mine ore. But it's really about the ground size that we've got to work harder on, and that's all about the control, the processing control that we've put into the milling and screening side of the flow sheet.
Speaker Change #149: and that drives the oxidation and what we have done in the interim which I shared last time is we did create a variance to that so we can still feed
Speaker Change #149: run-of-mine ore into some of the autoclaves. We can reconfigure them to take run-of-mine ore. But it's really about the ground size that we've got to work harder on and that's all about the control.
Speaker Change #149: the processing control that we've put into
Speaker Change #149: the milling and...
Mark Bristow: But what we can tell you is that we've certainly had runs where everything works, and we get right up there on a unit per hour basis that we need to get on a consistent basis, and then we'll meet our objectives. And without a doubt, my whole career has been through these.
Speaker Change #149: and a screening side of the flow sheet.
Speaker Change #149: So it's really technical bedding down the operation. But what we can tell you is that we've certainly had runs where everything works and we get right up there on a unit per hour basis that we need to get
Speaker Change #149: on a consistent basis and then we'll meet our objectives. And without a doubt, my whole career, I've been through these.
Mark Bristow: Processes, they're frustrating and.., and uh stressful but at the end of the day we get to where we want to get. Yeah, and just on something that Anita mentioned, the 92% recovery, and I know that, you know, you're corrected us on the 86%, but I was under the assumption as well that we were getting to 92%. I'm just wondering if it's just our recollection from the Mind Tour or if something has changed. Just some clarity on that would be great.
Speaker Change #149: Processes, they're frustrating and...
Speaker Change #149: and stressful but at the end of the day we get to where we want to get to.
Anita Sone: Yeah and just on something that Anita had mentioned, the 92% recovery and I know that you know you you're you're corrected us on the 86% but I was under the assumption as well that we were getting to 92%.
Speaker Change #150: I'm just wondering if it's just our recollection from the mind tour or something has changed. Just some clarity on that would be great. Thank you.
Mark Bristow: Thank you. Hi Tanya, it's Graham. You're correct that in the feasibility 4101, we do go up to the 90s. It's a graduated process. So yeah, it takes us a while to get up there. Okay, so the aim, Graham, is still to get there. It's just not really over the next few years.
Speaker Change #150: Hi Tanya, it's Graham. You are correct that in the Feasibility 43-101 we do go up to the 90s. It's a graduated process so it takes us a while to get up there.
Speaker Change #151: Okay, so the aim, Graham, is still to get there, it's just not really over the next few years. Is that a correct statement? Yeah, definitely not this year, as we pointed out.
Graham Shuttleworth: Is that a correct statement? Yeah, definitely not this year, as we pointed out. Do we get there next year? [inaudible] No, the following year.
Speaker Change #152: Do we get there next year?
Mark Bristow: And if I could ask about reserve replacement, Mark, I always ask about reserve replacement. I'm, I would like to know what, you know, how we look going forward. So, as you, you know, are eight months into the year, how does reserve the placement look for you this year, both from a, you know, from a mind-sight perspective versus resource, and then that, you know, the critical question of, you know, with this gold price at 2400 plus, is there the thought of having to change your reserve and resource price? So I'll answer the easy part of that question and then pass it on to Simon Bottoms to do the details. Then... Then...
Speaker Change #153: No, the following year.
Speaker Change #153: Yeah, okay, thank you on that as well. And if I could ask about, Mark, I always ask about reserve replacement.
Mark: I always like to know how we look going forward. So as you're eight months into the year, how does reserve replacement look for you this year?
Speaker Change #154: both from a, you know, from a mine site perspective versus resource and then that, you know, the critical question of, you know, you know, with this gold price at $2,400 plus, is there the thought of having to change your reserve and resource pricing?
Speaker Change #154: So, I'll answer the easy part of that question and then pass on to Simon Bottoms to do the detail.
Mark Bristow: The... Where we are at the moment is with the two big feasibility studies we more than replace our reserves and resources. These are big numbers both in gold and in copper coming out of Rikkadek and, and the Lamarna Superfit. Um, having said that, uh, the, you know, Kabali, Lulogon, Kata are also in good shape to replace. P.V.
Speaker Change #154: the
Simon Bottoms: Where we are at the moment is, with the two big feasibility studies, we more than replace our reserves and resources. These are big numbers, both in gold and in copper, coming out of Reykjavik and the La Mina super pit.
Simon Bottoms: Having said that, the Kabali, Lulog, and Kota are also in good shape to replace. PV is slightly.
Simon Bottoms: is slightly... You know, PV, we added that we took the reserve to 21 million answers last year, so that's a big number and although the geologists are pointing to additional opportunities, it's not going to come in, and and the big focus right now in in Papua New Guinea is really getting the mine up and running. We've got a 10-year life of mine. There's work to do to be able to add additional, Reserves to That Laugh of Mine. And so those just on a broad level, that's the sort of the way we look at it. Simon, do you want to pick up on that?
Simon Bottoms: PV we added that we took the reserves to 21 million ounces last year so that's a big number and although the geologists are pointing to additional opportunities it's not going to come in.
Simon Bottoms: And the big focus right now in Papua New Guinea is really getting the mine up and running. We've got a 10-year life of mine. There's work to do to be able to add additional...
Simon Bottoms: reserves to that life of mine and so those just on a broad level that's the sort of the way we look at it. Simon do you want to pick up on that?
Simon Bottoms: Yeah, sure. So, as Mark said, so for the year, Africa Middle East is looking positive to replace its overall regional depletion. Again, as we've already pointed out in some of the releases, it's really driven by those core tier one assets, Lula-Kapali, but we're still seeing strong indications that we will be able to continue that fight in Tanzania as well. The Latin America region, the assets aren't all forecast to fully replace their depletion this year, but with the addition of Rico-Dict, as Mark's already said, that is forecast to make a substantial growth for that region.
Simon Bottoms: Yeah, sure.
Simon Bottoms: As Mark said, for the year...
Speaker Change #156: Africa Middle East is looking positive to replace it.
Speaker Change #157: agro-regional depletion.
Speaker Change #158: Again, as we've already pointed out in some of the releases, it's really driven by those core Tier 1 assets, Lulu and Kepali, but we're still seeing strong indications that we will be able to continue that fight in Tanzania as well. The Latin America region...
Mark: The assets aren't all forecast to fully replace their depletion this year, but with the addition of Rico Dick, as Mark's already said, that is forecast to make a substantial growth for that region. Within North America, for Nevada gold mines, again, we're currently working through the models, but we are forecasting to replace our depletion.
Simon Bottoms: Within North America, for Nevada Goldmines, again, we're currently working through the models, but we are forecasting to replace our depletion within MGM, particularly with updates to the open pit studies, particularly in Hemlets. Then for reserve pricing, we are seeing some cost pressures. We're looking at the pricing at the moment. We're doing the studies and we will be looking to announce later in the year where we stand with that. Our intention, as has always been, is to maintain the quality of our mine plans.
Speaker Change #159: within MGM, particularly with updates to the open pit studies in particularly in Hamlets.
Ben Verst: Ben Furth
Speaker Change #161: reserve pricing we are seeing
Speaker Change #162: We're looking at the pricing at the moment, we're doing the studies, and we'll be looking to announce later in the year where we stand with that. Our intention, as has always been, is to maintain the quality of our mine plans, and because a lot of our mine plans are...
Simon Bottoms: A lot of our mine plans are more geologically constrained, whereby even with the current reserve price, we mine the majority of the high-quality, high-grade material. When you lift that reserve price, you inherently just add marginal material.
Speaker Change #162: more geologically constrained whereby we actually, even with the current reserve price, we actually mine the majority of the high-quality, high-grade material.
Speaker Change #162: So when you lift that reserve price, you inherently just add marginal material, and so therefore we evaluate it on an asset-by-asset basis.
Simon Bottoms: Therefore, we evaluate it on an asset-by-asset basis to ensure that any increases or changes in reserve price would add material that would actually drive value and not just bring extra capital requirements through additional process plant expansion requirements. We reviewed our resource price for copper last year and that's still very much in line with long-term consensus at the moment. I'd expect we'll be looking at our long-term resource pricing this year. Okay, are they really appreciated?
Speaker Change #162: and to ensure that any increases in or change in reserve price would add material that would actually drive value and not just bring extra capital requirements through additional plant process plant expansion requirements.
Speaker Change #163: Resource pricing, I think we reviewed our resource price for copper last year and that's still very much in line with long-term consensus at the moment. I'd expect we'll be looking at our long-term resource pricing this year.
Speaker Change #164: Okay, I really appreciate that and thank you very much for taking my question.
Tanya Jakusconek: Thank you very much for taking my question. Anita, The last question comes from Daniel Major with UBS. Please go ahead. Hi, thanks for the follow up. Just a couple of quick ones, more modeling dynamics.
Speaker Change #164: Pleasure.
Speaker Change #164: Anita
Speaker Change #164: well
Speaker Change #165: The last question comes from Daniel Major with UBS. Please go ahead.
Daniel Major: Hi, thanks for the follow-up. Just a couple of quick ones, more modeling dynamics. It looks like G&A, perhaps expirations running a little bit below your guidance, obviously a good result if you're pulling the G&A down. How should we be thinking about that? Should we expect a big step up in the second half or are you undershooting the $180 million, particularly on the G&A? And similar question on the expiration and project.
Daniel Major: It looks like DNA, perhaps expirations running a little bit below your guidance, obviously a good result if you're pulling the DNA down. How should we be thinking about that? Should we expect a big step up in the second half? Or are you undershooting the 180 million, particularly on the DNA? And similar question on the expiration and project. So we we pride ourselves in, being the most efficient operators of a mining company on this planet when it comes to GNA and we continue to look at Making Corporate, Oversight, there's efficient as possible.
Speaker Change #167: So we pride ourselves in being the most efficient operators of a mining company on this planet when it comes to GNA and we continue to look at making our corporate
Daniel Major: [inaudible] And we will continue to do that. So that trend is, is a good one. And, and it's, and it's interesting when you see what we do with twice the size of the company. And with fewer people but super efficient systems.
Speaker Change #168: Oversight as efficient as possible.
Speaker Change #169: and and we will continue to do that so that trend is is a good trend and
Speaker Change #169: And it's interesting when you see what we do with twice the size of the company and with less people but super efficient systems. That's what we stand for. So that trend is right. And then Dan, I've tightened up on the expiration a bit this year.
Mark Bristow: That's what we stand for. So that trend is right. And, and then Dan, I've tightened up on the expiration a bit this year, just we had got to a stage where You know, my resource triangle, we were getting sloppy with the resource triangle, we needed to tighten up people's priorities and not just lump more and more targets into the resource triangle and needed to be properly tested. And so we tightened up on, The budget and said, you know, the budget's available, but you've got to pass them [inaudible] Some filters to get more. And it just needed that discipline.
Dan: Just we had got to a stage where...
Dan: You know my resource triangle, we were getting sloppy with the resource triangle, we needed to tighten up people's priorities and not just lump more and more targets into the resource triangle and need it to be properly sorted.
Speaker Change #171: tested and so we we we tightened up on on the budget and said you know the budget's available but you've got to pass some
Mark Bristow: And that's what we did. So again, you you've picked up very smartly, a little tightening and in the way we allocating expiration dollars, we've got a lot of opportunities. We've got to get the geologists and and the evaluators to be a little bit more focused on popping moving the portfolio up through towards feasibility study. And that's the reason that we've just tightened up. Thanks so much.
Speaker Change #171: some filters to get more and it just needed that discipline and that's what we did. So again you you've picked up very smartly a little tightening in the in the way we're allocating exploration dollars. We've got a lot of opportunities.
Speaker Change #171: We've got to get the geologists and their evaluators to be a little bit more focused on moving the portfolio up through towards feasibility study, and that's the reason that we've just tightened up.
Daniel Major: I recognize that you don't want to, you know, erode your margins on the one side, but on the other side of the equation, I think you can, you know, inflation is obviously... Persistent, one of the reasons why we have a gold price that's at $2,400 gold. So, I mean, would you consider raising it to make sure that you're capturing all of the value given the current, So, so this is um, um, So this is a very interesting topic, I'll try and keep it short, so first of all the gold price is up because the world's in a mess, uh... not because of inflation inflation is part of that mess and so we worry about long-term, that's why I keep discipline on our, the Reserve Prize. And there is a time when you start to roading your all buddies with the GoPro, because of the cost issue. And that's when we moved to $1,300. That was the reason.
Speaker Change #172: Thanks very much.
Anita Sone: Anita, you got it.
Speaker Change #173: I recognize that you don't want to erode your margins on the one side, but on the other side of the equation, I think you can...
Speaker Change #174: Obviously, persistent, one of the reasons why we have a gold price that's at $2400 gold. So, I mean, would you consider raising it to make sure that you're capturing all the value given the current cost?
Speaker Change #175: So, so this is, um...
Speaker Change #176: So this is a very interesting topic. I'll try and keep it short. So first of all, the gold price is up because the world's in a mess.
Speaker Change #176: not because of inflation. Inflation is part of that mess. And so we worry about long-term, that's why we keep discipline on our...
Speaker Change #177: The Reserve Price and there is a time when you start eroding your oil bodies with the gold price.
Mark Bristow: We found the right balance between Barrick and Rangold assets. And to Simon's point, we looked at the all body shapes. So when you when you take a higher gold price into an all and we mine quality all body, So when you take turquoise reds, you go in and you jack the gold brass up, you start mining waste, you start mining very marginal or putting it into the mill, that means to keep the same production you've got to enlarge your mill and thereby you increase your costs and your value of your assets goes down.
Speaker Change #177: because of the cost issue.
Simon Bottoms: And that's when we moved to $1,300. That was the reason. We found the right balance between Barrick and Rangold assets. And to Simon's point, we looked at the all-body shapes.
Speaker Change #178: So when you take a higher gold price and we mine quality ore bodies
Speaker Change #179: So when you take take turquoise rich you go in and you jack the
Simon Bottoms: the gold price up, you start mining waste.
Simon Bottoms: You start mining very marginal or putting it into the mill, that means to keep the same production you've got to enlarge your mill. And so...
Simon Bottoms: and thereby you increase your costs and your value of your assets goes down. So all the mine management...
Mark Bristow: And why they think they should be doing something different if it detracts from the inherent value of the operation and we have very few assets. There is logic for a small increase in the gold price, which effectively keeps your grade, so it keeps your ovaries intact. The last thing you want to do is start slicing a piece of your natural boundary of your ovary off.
Simon Bottoms: every year have to deliver an NAV equation on their business and why they think they should be doing something different if it detracts from the inherent value of the operation. And we have very few assets.
Simon Bottoms: There is logic for a small increase in the gold price which effectively keeps your grade.
Speaker Change #180: So it keeps your old bodies intact.
Speaker Change #180: Because the last thing you want to do is start slicing a piece of your natural boundary of your old body off.
Mark Bristow: And the other side of it is... For instance, Tongon, you'll see we changed that gold price that we look at Tongon because it's a closing mine and we don't want to leave value behind. And the ore bodies are such that we've started building capacity in the processing facility so it can take that marginal ore and still make money out of it. So each one of our operations we assess independently.
Speaker Change #180: and the other side of it is...
Speaker Change #181: For instance, Tongan, you'll see we changed that gold price that we look at Tongan because it's...
Speaker Change #182: It's a closing mine and we don't want to leave value behind.
Speaker Change #182: and the ore bodies are such that we've started building capacity in the processing facility so it can take that marginal ore and still make money out of it.
Speaker Change #182: So, each one of our operations we assess independently, and Simon's absolutely right. What we did do on the $1,700 goal price...
Mark Bristow: And Simon's absolutely right. What we did do on the $1,700 gold price, is we looked at again at the all bodies, particularly the low grade pets in that and we said we don't want to compromise our shareholders future potential by putting infrastructure infrastructure, on the all bodies. So we use 1700 1700 pretty well mined out. Our resource. And so that's that's the logic for a big gap. It's quite interesting now at $2,400 The $1,700 actually looks quite attractive, but the capital to take that, forward is, you know, is high.
Speaker Change #183: is we looked at again at the ore bodies particularly the low-grade pits in that and we said we don't want to compromise our shareholders future potential by putting infrastructure
Speaker Change #183: on the ore bodies. So we used 1700. 1700 pretty well mined out our resource.
Speaker Change #184: And so that's the logic for a big gap. It's quite interesting now at 2400, the 1700 actually looks quite attractive. But the capital to take that.
Mark Bristow: Certainly the oxides we are taking already, you know, we will take oxides on the margin, particularly in Nevada because we've got capacity. So just to give you a feel of how we manage our portfolio. Dean, he wants to say, [inaudible] Now I'm just going to add that, you know, effectively, Anita, we do take cognizant of that inflationary impact and obviously if we see it as a sustained increase in costs and as Mark says, it's going to erode the core value of those all bodies, then we would adjust for it.
Speaker Change #184: forward is, you know, is high.
Speaker Change #185: certainly the oxides we are taking already you know we will take oxides on the margin particularly in in Nevada because we've got capacity so just just to give you a feel of how we manage our portfolio
Mark Bristow: So it's something we look at, we keep it under view, the teams are busy with that work as you would expect now, and we'll see whether, yeah, it's necessary or not, but yeah, right now, we're pretty close to where we need to be. Video.
Beanie: Beanie wants to say something.
Beanie: I was just going to add that, you know, effectively.
Anita Sone: Anita, we do take cognizance of that inflationary impact.
Speaker Change #187: And, obviously, if we see it as a sustained increase in costs and, as Mark says, it's going to erode the core value of those ore bodies, then we would adjust for it. So it's something we look at. We keep it under.
Mark: Review the teams are busy with that work as you would expect now, and we'll see whether yeah, it's necessary or not, but Yeah, right now. We're pretty close to where we need to be
Graham Shuttleworth: There are currently no more questions. Okay, operator, you good to go outside? Yes, there are no more questions. Thank you very much. Thank you, operator for managing this and thank you everyone for coming, some snacks next door for those who want to hang around. And I would just say, you know, there were some detailed questions coming out. We sort of did a bit of a modeling session here.
Speaker Change #188: Any help?
Speaker Change #189: There are currently no more questions.
Speaker Change #190: Okay. Operator, you go to your side.
Speaker Change #191: Yes, there are no more questions.
Speaker Change #192: Thank you very much. Thank you, operator, for managing this and thank you everyone for coming.
Speaker Change #193: some snacks next door for those who want to hang around and I would just say you know there were some detailed questions coming out we sort of did a bit of a modeling session here
Operator: You are always welcome to reach out to our team, whoever you feel comfortable reaching out to. We're always there to share the detail with you and get you on the right track. So please feel free to reach out after this. Thank you again for making the time. This concludes today's event. Should you have additional questions, please contact the Barrick Investor Relations Department. You may now disconnect your lines. Thank you for participating and have a pleasant day. , , , , , , , , , , , , , , , , , , ,
Speaker Change #193: You are always welcome to reach out to our team, whoever you feel comfortable reaching out to. We're always there to share the detail with you and get you on the right track. So please feel free to reach out after this. Thank you again for making the time.
Speaker Change #194: This concludes today's event. Should you have additional questions, please contact the Barrick Investor Relations Department. You may now disconnect your lines. Thank you for participating and have a pleasant day.
Speaker Change #194: [music]