Q2 2024 Barrick Gold Corp Earnings Call
Speaker Change: [music].
Ladies and gentlemen, thank you for standing by this is the event operator welcome to Barrick's results presentation for the second quarter of 'twenty 'twenty four.
Operator: Ladies and gentlemen, thank you for standing by. This is the event operator.
Unknown Executive: Welcome to Barrick's results presentation for the second quarter of 2024. 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.
In today's presentation. Our question answer session will be conducted if you have a question and are joining they rent by telephone. Please press Star then one on your telephone keypad.
Unknown Executive: 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.
There will also be taking questions from those and then.
Mark Bristow: As a reminder, this event is being recorded and a replay will be available on barrick's website. Later today August 12, 2024, I would now like to turn it over to Mark Bristow President and CEO of Bank. Please go ahead Sir.
Mark Bristow: Thank you very much and.
Mark Bristow: Thank you very much. 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 barbaric is taking shape in Nevada..
Mark Bristow: Very good morning, and good afternoon.
Speaker Change: Those yet Barrick corporate office and across the globe.
Speaker Change: Welcome to the quarter two results presentation.
Speaker Change: So at the halfway Mark of 'twenty 'twenty four.
Speaker Change: It's gratifying to report that outperformance has been picking up as we work to meet our production guidance for the year.
Speaker Change: As important as the operations.
Speaker Change: Is the progress we are making in advancing our major growth projects.
Speaker Change: As I'll show you during this presentation, a new potential tier one gold mine hundred percent 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. John Tumazos, John Tumazos, John Tumazos, John Tumazos, 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.
A couple of businesses on track for a transformation.
Speaker Change: Tons formate have expansion in the enlarged and upgraded Pueblo Viejo is getting into its stride.
Speaker Change: For our new twin T. A stretch is it.
Speaker Change: World Class producer.
Speaker Change: These bonds will be delivering new gold and copper into the market.
Speaker Change: At a highly opportune time.
Speaker Change: Demonstrating the value of barrick's long term planning and investment strategy as well as the enormous upside optionality embedded.
Speaker Change: And our asset base.
Speaker Change: This is the customary cautionary.
Speaker Change: Notice regarding forward looking information and for those who wants to study it further.
Speaker Change: You'll find it in full on our website.
Speaker Change: Starting with the group highlights.
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. Our is a closer look. At the financials, particularly significant are the increase in the tributable EBITDA margin to 48% and the substantial free cash flow growth. Gold margins were up 39% quarter on quarter, while copper margins rose by 124%. Adjusted net earnings per share was 68% higher quarter on quarter, and debt net of cash was reduced by 12 percent.
Speaker Change: The safety financial and operational results for the past quarter, all pointed in the right direction.
Speaker Change: Afflicting 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 all go well for our ability to fund our growth and so subset so stay in the delivery.
Speaker Change: Value to our shareholders.
Speaker Change: Salaries are closer look.
Speaker Change: At the financials, particularly significant or the increase in attributable EBITDA margin.
Speaker Change: 248% and the substantial free cash flow.
Speaker Change: 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.
Speaker Change: And debt net of cash was reduced by 12%.
Speaker Change: And the share buyback program was restarted in the quarterly dividend maintained at 10 cents per share.
Mark Bristow: And the share buyback program was restarted and the quarterly dividend maintained at $0.10 per share. Operation Lee, Gold production increased slightly, quarter on quarter. A slightly higher cost was a function of higher royalties, but for all intents and purposes, the costs were flat, and, um... And...
Speaker Change: Operationally.
Speaker Change: Our gold production increased slightly quarter on quarter.
Speaker Change: Slightly higher costs were a function of higher royalties, but for all intents and purposes the costs were flat.
Speaker Change: And.
Speaker Change: And.
Speaker Change: The the drive is all of the costs were really sit with P V S.
Mark Bristow: The drivers of the costs were really set with PV as we ramped it up, and then the pushbacks in.., in Collin and Cortez. Top of production increased with cost falling thanks to higher grades and mining fleet upgrades. And looking ahead, we expect materially higher production from PV, Turquoise Ridge, and Lawanna into the second half of the year. If you look at our detailed health and safety reports... It's very pleasing to show you how the performance continues to trend positively as we pursue our zero harm goal.
Speaker Change: And put it up and then are the push backs are in.
And Collyn and Cortez.
Speaker Change: Copper production increased with costs falling things to higher grades and mining fleet upgrades.
Speaker Change: And looking ahead, we expect materially higher production from P V.
Speaker Change: As rich and the water into the second half of the.
If you look at all detailed health and safety report.
Speaker Change: It's very pleasing to show you how the that the performance continues to trend positively.
Speaker Change: As we pursue.
Speaker Change: Cause you a zero Harlem golf.
Speaker Change: Our approach to sustainability has always been holistic and embedded in our business.
Mark Bristow: 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.
It is a differentiated approach focused on the long term and the understanding that all environmental and social aspects are interconnected.
Speaker Change: Integrated.
Speaker Change: Our approach is always based on science and it needs to be measurable.
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: This is why we developed the industry first sustainability scorecard.
Speaker Change: To track and disclose our sustainability performance.
We also linked car targets and report to the UN global compact and the UN sustainable development goals or S. D G's, which itself calls for an approach.
Speaker Change: Sustainability that resonates.
Speaker Change: 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 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 and 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. The more we learn about it...
Speaker Change: Targets to measure against.
Speaker Change: While maintaining a human focused lens for the development of our host communities and a goal to alleviate poverty.
Speaker Change: Our integrated approach extends to our climate change strategy.
Speaker Change: The addition of 200 megawatts of renewable solar energy at the T. S power plant in Nevada is another contributor.
So we start the operational review as usual in North America.
Mark Bristow: 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: We're in Nevada Gold mines hosts three all about tier one bonds with another in the making at the adjacent 100% Barrick owned full La project.
Speaker Change: Pall mall 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 deposits in the world today.
Speaker Change: [noise] directly adjacent to the Nevada gold mines existing infrastructure and one of the worlds best mining jurisdictions.
Speaker Change: Yeah.
Speaker Change: Following the completion of this age autoclave maintenance shutdown in the first quarter Turquoise ridge increased production by 16%, while called and 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.
Speaker Change: At Cortez.
Speaker Change: With that.
Speaker Change: Let's look take a closer look at full mile.
Speaker Change: Which is adjacent to the go to gold rush, but as I said in the previous slide is 100% owned by Barrick.
Speaker Change: I'm going to pause here.
So that you can digest the very significant intersections.
Mark Bristow: So that you can digest the very significant intersections by the 10 diamond core drill rigs currently on site. If 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.
Speaker Change: While the 10 Diamond core drill rigs currently on site.
Speaker Change: Yeah.
Speaker Change: If you look at these drill rigs drill intersections, they really remind widen all V. S. T. A the goldstrike colons 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 calling deposit itself the past.
Mark Bristow: Really, Formal reminds me of those company-making call-in deposits of the past. A world-class project, and everything. 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 option. But as I said, this is really one of those assets, that geologists dream about. In the fullness of time.
Speaker Change: A world Class project.
Speaker Change: Ever since.
Speaker Change: As we shared with you last quarter, we're planning to have an updated mineral resource source towards the end of the year when you'll make a decision about the pre feasibility options.
Speaker Change: But as I said this is really one of those assets.
Speaker Change: That geologist dream about.
Speaker Change: In the fullness of time.
Mark Bristow: I believe this asset has the potential to be as valuable to Barrick, as our current stake in Nevada Goldmine. 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. 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, Uh... 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: I believe this asset has the potential to be as valuable to Barrick is that current stake in Nevada gold mines.
Speaker Change: And that's before a geologist find more of those collyn elephants that I keep talking about.
Speaker Change: And that.
Speaker Change: Takes me.
Speaker Change: To the 14 million ounce level project.
Speaker Change: Which like gold rush is developing into another major growth driver.
Speaker Change: With the potential to double or triple.
Speaker Change: Current reserves.
Speaker Change: Extending Collins loft beyond 'twenty 45.
Speaker Change: And I think this is a significant just to dwell a little bit further on that and when you look at.
Speaker Change: <unk>.
Speaker Change: What we are dealing with today, we did a number of trade in transactions in 2019, 'twenty 'twenty, we never paid a premium for any of that embedded in those transactions are these types of ore bodies and what we're doing now is bringing them to the full and working to get them into our production profile and.
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: And you'll see more of this as you go but just just to before I leave.
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 Level expansion driving Carlin. And of course, Turquoise Ridge stands on its own as a high-cost, low-grade, low-cost producer.
Speaker Change: North America in Nevada in particular, so we've got gold rush.
Speaker Change: Driving Cortez complex, we've got the emerging legal expansion driving Collyn and of course turquoise ridge stands on its own.
Speaker Change: A high cost low low Ah Ah ha Ah.
Speaker Change: 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 full mall, you've got to believe that there's more opportunities to make new discoveries in this region and that's our focus.
Mark Bristow: And really, that is the future of Nevada. And then when you see the sort of quality coming out of 4 Mile, you've gotta believe that there's more opportunities, to make new discoveries in this region and that's our focus. 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.
Speaker Change: Leaving the North Americas, we moved off to Latin America.
Speaker Change: In Asia, The Asia Pacific region.
Speaker Change: We're all flagship growth projects, the Pueblo Viejo plant expansion and mine extension.
Is up and running again.
Speaker Change: In Papua New Guinea the recently.
Speaker Change: Restarted Pogo mine is ramping up to commercial production.
Speaker Change: While they're in Pakistan. The record that feasibility study is on track for completion this year.
Speaker Change: Yeah.
Speaker Change: Work has already started on the construction of what we to them early works infrastructure, while our recruitment drive focused on employees from the Baluchistan Province, which is at the very foundation of one on what we get in a bold Rick Burdick.
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 has now been 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. In the meantime, work on the new El Naranjo trading storage facility is advancing as planned.
Speaker Change: Just a reminder.
Speaker Change: That's the Pueblo Viejo project is designed to increase annual production.
Speaker Change: Sustainably above 800000 ounces for 20 plus years.
Speaker Change: After the failure of the conveyor infrastructure last year.
Speaker Change: It is now being rebuilt.
Speaker Change: And the focus over the past three months has been on throughput.
Speaker Change: The third quarter attention is now on grinding floatation and recovery ramping to achieve desired output parameters.
Speaker Change: In the meantime work on the new album neuron, Joe tailings storage facility is advancing as planned.
Speaker Change: So you can see how the project has advanced over the past 12 months and the outlook for the remainder of the AR.
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 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: Another steady quarter for Lula in Qatar with cash costs, well contained and all in sustaining costs impacted by additional stripping for the yearly up put that pushback.
Mark Bristow: Another steady quarter for Lulogon Cotto, 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 Bovoto target have identified a large-scale, well-endowed system with high-grade intercepts.
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.
Speaker Change: While protecting our rights and the economic viability of the Lula Guanajuato complex going forward.
Speaker Change: In the north of the Lula permit drill results from the boat to a target how about any further large scale well in Dod 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 Kabaly picked up speed after a slow start to the year with weight stripping providing access to higher grade open-fit oil. 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: Along with other near mine targets always well for Lula are getting caught up to again.
Speaker Change: Replace the goals I'm on this year.
Speaker Change: And across to the D. R C.
Speaker Change: Kibali picked up speed after a slow start to the year with waste stripping providing access to higher grade open pit ore.
Meanwhile, next year's planned commissioning.
Speaker Change: But solar power and battery storage facility will complement the bonds three hydro par plus increasing the renewable component until this energy use to 85% and in fact.
Speaker Change: For six months.
Speaker Change: We will have 100% renewable energy driving Oh power delivery.
Speaker Change: How does that new logo in Qatar.
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.
Speaker Change: Around field exploration continues to deliver further potential for growth with high grade results from the egg Barba Rhino Kumba Colo tavis pointing to a significant deposit.
Speaker Change: Within just four kilometers of the plant.
Speaker Change: The prolific Casey D. Train is also producing new opportunities for reserve additions and therein lies the quality. What we you know everyone's sort of created a definition of tier one assets, but real Tijuana assets come with enormous upside opportunity as you see in.
Mark Bristow: But real TL1 assets come with enormous upside opportunity, as you see in Lula-Goncato and at Cabali and significantly in Nevada, in Tanzania. 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 Lemuana 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: New logo in Qatar and at Kibali, and and significantly and are in Nevada.
Speaker Change: In Tanzania.
Speaker Change: North Mara and Boolean, who knew both increased production.
Speaker Change: All driving down costs and the resuscitation of these mines.
Speaker Change: It was one of our major success stories as is the concept of formal beneficial benefit sharing partnerships with close countries, which we successfully pioneered.
Speaker Change: With the Tanzanian government.
Speaker Change: The NIM on a copper mine in Zambia delivered a higher production at lower costs in line with our 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 240000 tonnes of copper and extend the operation's lost by more than 30 years first production of this project is expected.
Speaker Change: From this project is expected.
Speaker Change: In 2028.
Speaker Change: The Super pit and Rick have <expletive> ought to have the organic growth projects I referred to at the start of the presentation.
Mark Bristow: The La Mina Super Pit and Ricker Deck 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 RICAdex 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 which all recapped 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 rig codec.
Speaker Change: We will be both a gold.
And a couple of months designed to produce 400000 tons of copper on an annual basis, and 500000 ounces of gold to yet.
Speaker Change: Phase two of its development.
Speaker Change: Add to that the ramp up of basically two new mines Gold Rush N. P V to be followed by a potential brand new mine in full mile of which Barrick owns a hunter.
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: Per cent, and which can utilize the existing Nevada gold mine's 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.
Speaker Change: And that is how undervalued.
Mark Bristow: Barrick's shares are today. So 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 assets 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 gold mines on its own should command the industry's highest valuation.
Speaker Change: Barrick shares are today.
Speaker Change: So to my to end my presentation I wanted to take you through.
Speaker Change: Some research based on consensus net asset value of our assets.
Speaker Change: This slide we highlight two of our key businesses.
Speaker Change: On the left.
Speaker Change: The slide you have Nevada gold mines, which is by far the best gold assets in the worlds most mining friendly jurisdiction.
Speaker Change: The right side shows outgrowing 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 at any pause the unrealized value embedded in barrick's within barrick's portfolio.
Speaker Change: Nevada gold mines on its own.
Speaker Change: It should come on the industry's highest valuation.
Speaker Change: On that basis.
Mark Bristow: On that basis, this analysis conservatively assumes the price to NAV 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 COSPA assets in Argentina. Again, the analysis is based on the current analyst consensus now.
Speaker Change: That's just conservatively assumes the price to NAV multiple equivalent.
Speaker Change: To that of Agnico Eagle.
Speaker Change: Although arguably a N G M would be higher rated given its size and quality.
Speaker Change: Yeah. The analysis suppliers is 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.
Speaker Change: <unk> significantly higher multiples to those undeveloped caused by assets in Argentina.
Speaker Change: Again, the analysis is based on the current.
Speaker Change: Analyst consensus NAV.
Mark Bristow: 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 mines.., 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.
Speaker Change: But we expect these NAV.
Speaker Change: To increase.
Speaker Change: As we will be publishing updated feasibility studies on our two key our key growth projects.
Speaker Change: At the end of the.
As you can see from the table on.
Speaker Change: On the basis of their analysis.
Speaker Change: The value of just out of 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.
Mark Bristow: This includes our interest in three tier one gold mines outside Nevada. The World-Class 4-Mile Project, Other gold mines and development projects still in the pipeline, and our exploration team's unparalleled success in uncovering new archaeology. In short...
Speaker Change: The World class four mile project.
Speaker Change: Other gold mines and development projects still in the pipeline.
Speaker Change: And our exploration teams unparalleled success in covering and uncovering nuances and.
Speaker Change: In short.
Speaker Change: I would submit that when you bought Barrick today, you get a lot for free.
Mark Bristow: I would submit, that when you buy Barrick today... We get a lot for free. We set out in 2019 to build a sustainably profitable gold and copper mining company, focused on world-class. 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. Development and Delivery, which is where we are today. On top of that.
Speaker Change: We used to attach in 2019 to build a sustainably profitable double gold and copper mining company.
Speaker Change: Focused on World class assets.
Speaker Change: We did not have to bother them.
Speaker Change: At a premium as I indicated in my introduction.
Speaker Change: They were embedded.
Speaker Change: And the compiled combined portfolio that we put together at market.
Speaker Change: And just you acquired.
Speaker Change: Identification.
Speaker Change: Evaluation.
Speaker Change: Development and delivery, which is where we are today.
Speaker Change: On top of that.
Mark Bristow: 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 plan. Clearly, 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. This is Lawson Winder from Bank of America. I wanted to start on copper, about LeMuana.
Speaker Change: We have replaced all the ounces we have mined.
Speaker Change: And repaired our balance sheet to be industry, leading.
Speaker Change: And capable of supporting our dividend policy and growth plans.
Speaker Change: Clearly.
Speaker Change: Barrick reps represent an investment opportunity unmatched in our sector.
Speaker Change: And I hope you'll leave the presentation with a clear 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 in the oilfield.
Speaker Change: Alright, thanks, very much for the presentation, it's a lawson winder from Bank of America, Hello, So I wanted to start on copper and just ask about Lamar on us. So two questions on that particular asset so one.
Mark Bristow: 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. Do you anticipate that will continue to improve going forward? Is there any risk that that could be reduced further? and the LeMona Project ramping up in first production in 2028. What is the latest thinking on a power...
Speaker Change: Power situation in the country I mean currently.
Speaker Change: A reduction of 20% initially.
Speaker Change:
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 a little more on a project ramping up and first production in 2028.
Speaker Change: What is the latest thinking on a power solution for that asset.
Speaker Change: So they are a loss and are they all of a sudden plans to put extra infrastructure power infrastructure into Zambia, we have already been awarded the capacity required to bring in the expansion and in Zambia, So technically with.
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 Zambia. So, technically, we're, um, we're, uh.., 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:
Speaker Change: <unk> four to draw off the grid.
Speaker Change: As the country itself looks to expand its infrastructure at the same time Barrick has recently completed a study of the tie our Zambian power infrastructure and potential and of course, we share that with the with the authorities and then as far as the short term.
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: Issues go we you're right, 40% is now the rationing, but we have got a back to back agreement.
Speaker Change: With the the.
Speaker Change: The utility to be able to purchase power third party PA from outside Zambia at a discount to the cost of it of a generating diesel call with and we've got full backup diesel power on Sox as well so.
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 can access additional external third party power at a lower price to what we bought. , , , , , , , and Generating Equipment to be able to support ourselves. And as part of that, we've also reached agreement on co-generation. 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.
Speaker Change: Having said that and so we saw this coming we invested in.
Speaker Change: And our own insurance, we then work with the government to make sure that we can.
Speaker Change: Access additional external third party power out of it.
Speaker Change: At a lower price to what we.
Speaker Change: Purchase what we generate ourselves, but at the same time, we brought in additional infrastructure.
Unknown Executive: 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. We will also be taking questions from those in the room.
Speaker Change:
Speaker Change: And and generating equipment to be able to support ourselves.
Speaker Change: And as part of that we've also reached agreement on cogeneration.
Unknown Executive: As a reminder, this event is being recorded and a replay will be available on barracks website. Later today, August 12, 2024.
Speaker Change: So we can generate power.
Ourselves and feed it through the grid. So we've done pretty much every I mean, we grew up in West Africa, where you have to rely on your own self to be able to supply at bell and so and and I am a team as you know.
Mark Russo: I would now like to turn you over to Mark Russo, President and CEO of barracks. Please go ahead, sir. Thank you very much and very good morning and good afternoon to those here at the barracks corporate office and across the globe.
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:
Speaker Change: Very equipped to be able to deal with this stuff having said that there is of course challenges you know we every now and then we get the thing.
Mark Russo: Welcome to the quarter two results presentation. So, it's a 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 one goal man, 100% own barbaric is taking shape in Nevada.
Speaker Change: Delivery I'm synced, and we have to pick up on that we've got and 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.
Speaker Change: That is a risk, but we will continue to look at solutions that 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.
Speaker Change: The T S a solar powered pas.
Speaker Change: Our plant in Nevada, that's 200 megawatts. So you know if you look back to our experience.
Mark Russo: Our corporate business is on track for a transformation, transformative expansion and the enlarge and upgraded Pablo Verho is getting into its stride for a new 20 year stretch, as a world-class producer. These minds will be delivering new golden 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.
Speaker Change: Going back to Randgold days, you know, we started with generating diesel than we went in to do heavy fuel now we gas turbines solar so we have a very a good undertake nickel capability of managing.
Mark Bristow: Now we gas turbines, solar. 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 they've got lots of power, but they can't get it anywhere because the infrastructure is unreliable.
Speaker Change: The PA and the first thing is to is to work with the utility to make sure that one.
Speaker Change: I understand.
Speaker Change: The opportunities and the infrastructure because it's no good just dumping and power like you saw in Pakistan.
Speaker Change: Where they've got lots of power, but they can't get it anyway, because the infrastructure is unreliable. So that was out there investment alongside or on behalf of the <unk>.
Mark Bristow: So that was our first investment alongside or on behalf of the Zambian government. 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. I met you guys.
Mark Russo: 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 highlights, the safety, financial and operational results for the past quarter, all points 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 all go well for our ability to fund our growth and so sustain the delivery of value to our shareholders.
Speaker Change: And government so.
Speaker Change: You know we are very aware of it we are not.
Speaker Change: Oh, not dismissing it we recognize it as a risk but once you you know the.
Speaker Change: The <unk>.
Speaker Change: Once you understand it then you can work through them.
Speaker Change: Got it.
Mark Bristow: But RPC Mark if I can ask you question on capital allocation I think historically, you've talked about prioritizing or wanting to prioritize our financial liquidity for some of the copper growth portfolio.
Mark Bristow: 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. U.S. Development Capital.
Speaker Change: Development capital.
Mark Bristow: 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? No, first of all, Josh, just to correct you on your report this morning. We don't, we put in the buyback approval, so that we can manage shorts in the market, and any softness in the stock. Our discipline is real and you've seen that through my whole career.
Speaker Change: Now 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.
Mark Russo: The hours are closer look at the financials, particularly significant, are the increase in the tributable even our margin to 48% and the substantial free cash flow growth. Gold margins were up 39% quarter on quarter, while copper margins rose by 124%. Adjusted net earnings per share were 68% higher quarter on quarter, and net 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: So first of all Josh just to correct you on your report this morning.
Speaker Change: We don't we we put it in the buyback approvals.
Speaker Change: So that we can manage shorts in the market.
Speaker Change: And and any softness in the stock so.
Speaker Change: Our discipline is real and you've seen that through my whole career I don't say, one thing and do another.
Mark Bristow: I don't say one thing and do another. 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 a dividend. 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.
Speaker Change: And so managing our capital allocation is core to us and so.
Speaker Change: The way the mud.
Speaker Change: Muddle works, which we've shared with our investors is when we get extra cash Nathan.
Speaker Change: Debt.
Speaker Change: We will pay that out as a dividend as.
Mark Russo: Operationally, gold production increased slightly quarter on quarter. A slightly higher cost were a function of higher royalties, but for all intents and purposes, the costs were flat. And the drivers of the cost were really set with PV as we ramped up, and then the pushbacks in Colin and Cortez. Top of production increased with cost falling thanks to higher grades and mining fleet upgrades. And looking ahead, we expect materially higher production from PV, turquoise reds and lamana into the second half of the year.
Speaker Change: As management, we 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 that and we will manage it against how we.
Mark Bristow: 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.
Speaker Change: Deem the value all of this of the shares and right now there's no no question that the shaves off a goodbye.
Speaker Change: So you know we got through some.
Speaker Change: 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 call it bar.
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've 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.
Speaker Change: And and again, what we said in the in the press releases, we rethought at all.
Speaker Change: 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. Our return of capital we are not out of kilter.
Mark Russo: To look at our detailed health and safety report, it's very pleasing to show you how the performance continues to trend 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 integrate. Our approach is always based on science and it needs to be measurable.
Speaker Change: With our peers.
And we still got a very strong balance sheet and so if you look at our the returns, particularly given the current share price their tis are quite healthy against the against the equity.
Mark Bristow: But 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, and ran gold 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.
Speaker Change: But as you know the objective will be first of all get the share price up that's a real focus.
Speaker Change: And and and.
Speaker Change: In the long term, we will pay the dividends as we did.
Speaker Change: I did in Randgold resources.
Speaker Change: And we fundamentally believe.
Mark Russo: 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 and in time to come targets to measure against while maintaining a human focused lens for the development of our host community.
Speaker Change: That dividend should come from the P. L. L. P. P&L in a mining company locked back and you shouldn't be borrowing to pay dividends and that's the way we've always run our businesses and that's the way we plan to continue and we and just just probably have another bit of color.
Speaker Change: This quarter is good because you see the costs are flat.
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 Peavey'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, and a lot of that supporting capital, the sustaining capital you call it.
Speaker Change: Okay on the swings and Roundabouts there a couple of assets that still have a way to go and there are other assets that are ahead of the curve Loch PV has got some way to go in.
Speaker Change: And turquoise ridge as well.
Speaker Change: But largely we at that point, where we now starting to we've we've we've caught up with a lot of the development. We are starting to transition to our own teams back to our own teams from the contractors on the development, particularly in Nevada to catch up the and build that flexibility in the underground.
Mark Russo: And 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 one mines with another in the making at the adjacent hundred percent Barrick owned formal project. Four mile is a particularly exciting prospect.
Speaker Change: Operations.
Speaker Change: And and in a lot of that supporting cat fill the sustaining carefully you call it.
Speaker Change:
Mark Bristow: 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 Le Moana and the construction of, of, And then of course 4 Mile is a brand new asset that'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.
Speaker Change: That starts coming off as we forecast now for a while and that.
Speaker Change: It gets replaced by a growing gross capital as we go into the expansion of the Mod and the REIT and the construction of.
Speaker Change: Of.
Speaker Change: Of rig codec, and then of course, a full mile as a brand new asset that still.
At that pre feasibility pre pre feasibility stage and we need to put a get our head around that but you can see how quickly the geology started to link together.
Mark Russo: 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 percent while Carl and 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 Cortes.
Speaker Change: And so that's another opportunity and then the remaining capital is in in Pueblo.
Speaker Change: Pablo vehicle was all about the tailings facility the the capital itself with expansion is largely split.
Speaker Change: One more question on sort of the same train of thinking you're reviewing I do like the slides you had that debt 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 or 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?
Speaker Change: Demonstrates the value proposition with the stock here.
Speaker Change: And and and and sort of real core value drivers I'm wondering.
Speaker Change: In the event that.
Speaker Change: Shareholders investors don't recognize that with the company ever consider spinning out some assets or you.
Speaker Change: Divesting some of these non core positions to try to realize the value on a quicker timeframe well first of all have you ever seen that work.
Mark Russo: With that, let's look at take a closer look at four mile, which is adjacent to the gold to gold rush, but as I said in the previous slide is 100 percent owned by Barrick. I'm going to pause here so that you can digest the very significant intersections by the 10 diamond core drill rigs currently on site. If you look at these drill rigs, drill intersections, they really remind one of the idea, the gold trucks, the carlins, the big discoveries, and many are in the two ounce per ton category.
Speaker Change: Yeah.
Mark Bristow: 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 has got too many companies with not enough management as it is, and you know breaking these companies up without a third party acquisition. Barre 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: Rudolph noncore assets, absolutely very logical, but moving to high quality assets out of the portfolio. It makes no sense first of all the mining industry has got too many companies with not enough management as it is.
Speaker Change: And you know breaking these companies up or without Uh huh.
Speaker Change: A third party acquisition.
Speaker Change: Bob competent management is a challenge to deliver value.
And that's a short term opportunity you know, it's like people, saying.
Speaker Change: So.
Speaker Change: Why don't you.
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 with the market in 2011 in Narango. We ended up at two, over two times. NAV, trading at over two times NAV eventually as we delivered on those assets. Another really good example is Freeport.
Speaker Change: Delays of capital development of your assets and give us the dividend. So how do we build the company. It goes it's a consumptive industry you've got to replace what you what your mom.
Mark Russo: Really, formal reminds me of those company-making calling deposits of the past, a world-class project in every sense. As we shared with you last quarter, we're planning to have an updated mineral resource towards the end of the year when you'll make a decision about the pre-feasibility options. But as I said, this is really one of those assets that geologists dream about. 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 mines.
Speaker Change: And I would take you back to two examples.
Speaker Change: We went through the same debate to the market in 2011 and are angled.
Speaker Change: We ended up at two over two times.
Speaker Change: Net trading at over two times NAV eventually as we delivered on those assets.
Speaker Change: Assets now.
Mark Bristow: You know, we try to convince Freeport to merge with us when they were $10 billion market cap. They were resolute about that. 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 where they were a $10 billion market cap they were resolute about.
Speaker Change: The value of their company and the importance of investing in the.
Mark Russo: And that's before our geologists find more of those calling elephants that I keep talking about. And that takes me to the 14 million-ounce-level project which, like Gold Rush, is developing into another major growth driver with the potential to double or triple current reserves extending Collins' life beyond 2045. And I think this is a 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.
Speaker Change: Grasberg underground infrastructure, it took them yours to get there.
Speaker Change: They languished around the bottom end of valuable under this fatty but look where they're trading today. They delivered on that plan and then and in the market has recognized him having been very negative to that decision to invest in that country and in Indonesia. So yeah.
Mark Bristow: But look where they're trading today. They delivered on that plan, and the markets recognize them having been very negative to that decision to invest in that country in Indonesia. So, you know, and if you look at all the if you look at what grew BHP, It was the... 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.
Speaker Change: And if you look at all the if you look at what group B H P.
Speaker Change: It was those.
Speaker Change: Last century investments in high risk development Escondida, the oil and gas that really the the the iron ore that really crude.
Speaker Change: Bolt at company T. A company into what it is today and that's what drove a real to get where it is and then it had a bad patch and it's reflecting on how does it get back there, but it still made some big decisions in Mongolia.
Mark Russo: We never paid a premium for any of them. Embedded in those transactions are these types of all 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, but just before I leave North America and Nevada in particular, so we've got Gold Rush driving Cortes complex. We've got the emerging legal expansion driving calling.
Speaker Change: In West Africa, and so this will just move that way and if you want to play in the mining industry and we've transitioned out of the.
Mark Bristow: 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. 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 that we've signed up in, this company back to where, to the individual part, 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.
Speaker Change: Hum mid cap lower cap instant gratification model, where 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.
Mark Russo: And of course Turquoise Red stands on its own as a hard-cost, great low-cost producer. And really, that is the future of Nevada. And then when you see the sort of quality coming out of formal, you've got to believe that there's more opportunities to make new discoveries in this region. And that's our focus.
Speaker Change: This company back to where with two there's some to the individual parts.
Speaker Change: It would not make any sense to certainly me and I don't believe when you look at outrageous.
Mark Russo: So leaving the North Americas, we moved on to Latin America and Asia Pacific region, where our flagship growth project, the Puebla Viejo plant expansion and mine extension, is up and running again. In Papua New Guinea, the recently re-started Paul Raman is ramping up to commercial production. While in Pakistan, the recodec feasibility study is on track for completion this year. Work has already started on the construction of what we term early works infrastructure.
Speaker Change: Our main investors are all still very much intact from 2019.
Speaker Change: Good morning, Brian Macarthur Raymond James.
Mark Bristow: Good morning, Brian MacArthur, 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 Macarthur: So mark you've highlighted how exciting four mile might be but can you just go over and review because I suspect the Devil's in the details now how it gets then did in to N. G M and I guess the question really here is I know you have to do a study, but technically what type of study doesn't have to be can newmont forge.
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.
Graham: You didn't 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 negotiated the deal, but the the detail to him, but there's nobody can force anyone to do anything in this last and certainly not under this agreement.
Mark Russo: While the recruitment drive focused on employees from the Baluchistan province, which is the very foundation of what we're going to build. Just a reminder that the Puebla Verho 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.
Speaker Change: The point is as you know, we have a partnership with with Newmont, and and and Nevada, and and we have the right to access and utilize.
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, um.., that. The only way that Formal remains a 100% asset is to maximize...
Graham: The Nevada gold mine's infrastructure as due.
Speaker Change: I just ask you about and so at the end of the day, there is an opportunity to find a way to develop it for the 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.
Mark Russo: In the meantime, work on the new El Nauronjo Tating Storage Facility is advancing as planned. 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: All the time that.
Speaker Change:
Speaker Change: That full.
Speaker Change: Formal remains 100% as it is to maximize.
Mark Bristow: The the asset for our shareholders. And so that's the the work we're doing now is that we're doing, we 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.
Speaker Change: The the assets 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 to go there it looks like the old days and Colin you got yeah, just six rigs and trucks every week and every intersection as you see us yeah.
Mark Bristow: And, and every intersection, as you see is, you know, multi-hour and, intersections and we're talking very thick Breccia Style Obadi, 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 Newmarket. And then once we've got that, we'll be able to have a better.., uh... uh... view on uh... options and and and there is a there's 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...
Mark Russo: 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. Another steady quarter for Lulogon Cotto with cash costs well-contained and all in sustaining costs impacted by additional stripping for the Yaliyah pit pushback. Positive results from ongoing brownfield's 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 Lulogon Cotto complex going forward.
Speaker Change:
Colin: Intersections and we're talking very thick.
Colin: Brachial style ore bodies.
Colin: And so.
Speaker Change: I'll work this year is ready to to get a feel of what it is.
Speaker Change: We don't make any secret all that information reshape freely both with the market share holders and then of course, Nevada.
Speaker Change:
Speaker Change: And then once we've got that we'll be able to have a better.
Our view on options and and and there is a way to develop.
Speaker Change: Formal on it's on a standalone basis.
Speaker Change: It is definitely a way to do it but again that's a 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... Specific provisions that deal with this, first and foremost. 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, and in terms of determining the value of the of, And then importantly, market multiples for the appropriate asset.
Speaker Change: The optionality going forward and how we will choose it but getting back to the actual legal.
Speaker Change: Basis on which we can manage this I'll pass it to Greg.
Mark Russo: In the north of the Lulog permits, drill results from the Bevoto Tavit have identified a large-scale well-endowed system with high-grade intercepts. This, along with other near-mine Tavits, always well for Lulogon Cotto to again replace the gold demand this year. And across to the DRC, we're cabali picked up speed after a slow start to the year with weight-stripping providing access to higher-grade open-pit-all. Meanwhile, next year's planned commissioning of its solar power and battery storage facility will complement the mine's 300 power plants, increasing the renewable component of its energy use to 85%.
Greg: Smoke yeah. So the the joint venture agreement has.
Greg: Specific provisions to deal with this and first and foremost.
Greg: In terms of bringing the asset into the joint venture and provided to the joint venture it meets a minimum.
Greg: Return hurdle rate.
Greg: It goes into the joint venture and that would be on the back of the feasibility study.
Greg: And in terms of determining the value of the.
Greg: Oh, the acid for the purposes of going into the joint venture that is determined based on market valuations. So effectively it would be consensus gold prices combination of consensus spot and recent history gold prices.
Greg: And then importantly market multiples for the appropriate assets.
Graham Shuttleworth: So it's very much a market-based valuation. And then on top of that, in terms of determining its value. 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.
Mark Russo: And in fact, for six months of the year, we'll have 100% renewable energy driving our power delivery. As at Lulogon Cotto, brownfield's exploration continues to deliver further potential for growth with high-grade results from the agbaraba, rhino, cumbacola Tavits pointing to a significant deposit within just four kilometres of the plant. 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 TL1 assets but real TL1 assets come with enormous upside opportunity as you see in Lulogon Cotto and at Kabali and significantly in Nevada.
It's very much a market based valuation.
Greg: Then on top of that in terms of determining its values.
Greg: It gets the benefit of.
Greg: All of the infrastructure, that's already embedded so effectively the.
Greg: The feasibility study doesn't carry and as we any of the existing infrastructure.
Greg: Simply looks at you know what the cost would be.
Greg: On a go forward basis for that asset so if it could be and in the case of full amount it would benefit from all of the gold rush and infrastructure that's already pre developed.
Greg: And then there's the cost of the feasibility study itself is also something that is a part of the compensation. So in other words on top of that market valuation.
Greg: So that's the key.
Greg: Key aspects of it.
Greg: So just to clarify that theres not much Ah that's left behind and hot everyone. You pay full value for the full bringing it to feasibility and then the value on the basis of that piece of it.
Mark Russo: Tanzania, North Mora and Boolean Hulu both increase 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, benefit sharing partnerships with host countries which we successfully pioneered with the Tanzania and government. The Lemwana 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.
Hi, Mark Anita Soni Anita.
Graham Shuttleworth: It simply looks at what the cost would be 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. And then the cost of the feasibility study itself is also something that is part of the compensation. So now it's on top of that market valuation. 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 bringing it to feasibility and then the value on the basis of, Hi Mark. Anita Soni at CIBC. Hello Anita.
Anita: Anita good morning.
Unknown Attendee: My question is with regard 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 Simon, are you on the call? Yeah, I'm here.
Anita: My question is with regards to at Pueblo Viejo, So you've got it thanks for the slide where it shows the recovery rates into the end of the year I think you have a.
Anita Soni: Bound at 79% and 80% in Q3 and Q4, respectively could you just talk about how that evolves over 2025 as well I think the targeted rates of around 92% if I'm correct.
Speaker Change: No I think it's all just above 80, that's correct the funnel.
Mark Russo: 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 operations left by more than 30 years. This first production of this project is expected or from this project is expected in 2028.
Speaker Change: Targeted recovery.
Speaker Change: So I mean are you on the call.
Speaker Change: Yeah I'm here.
Speaker Change: What's the targeted recovery rightful.
Speaker Change: PV.
Speaker Change: Ultimately.
Mark Hill: Mark Hill.
Speaker Change: Oh, sorry.
Unknown Executive: So it's an incremental over the next couple of years. We lift to 79 and then step up from, yeah, Any keys? Yeah. I don't think it's 92, but Mark, are you... Mark Hill, are you on the call? Not on the hill. John Steele.
Speaker Change: It's an incremental over the next couple of years, where he led to 17 nine and then step up from.
Mark Russo: The Lemwana super pit and Riccadick are two of the organic growth projects are referred to at the start of the presentation and which are recapped here. 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 Riccadick 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: Yeah.
Speaker Change: How do you choose.
Speaker Change: Yeah.
Mark: It's not a two but mark are you.
Mark: Mark Hill are you on the call.
Mark: Not on the Hill John Steele.
Mark: The sale.
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. 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, Anita, the focus at the moment is...
Mark: Hi, Mark.
Mark: <unk> number in my head, but.
Speaker Change: Going up through mid <unk> 85 next year I'm not sure of the exact number a quarter ago.
Speaker Change: I'll have to get back to you.
Speaker Change: So that's the number I have in my head that sort of mid eighties, and we are targeting as you see end of this year at a T.
Mark Russo: Add to that the ramp up of basically two new mines gold rush and PV 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 initiatives.
Speaker Change: And then I need to and just sort of 80 580 sixes.
Speaker Change:
Speaker Change: And and in each of the the focus at the moment is.
Speaker Change: Like I'm sure you've listened to this sort of long before many times in the mining history. This is a single Sag mill.
John Steele: I'm sure you've listened to this sort of line before, many times in the mining industry, and then the original Tagmore, the Ballmore, and getting those mulls to.., optimized the grind to optimize the flow, to optimize the recovery. That's the focus that we're in right now, is balancing that. We've got, we're comfortable with the throughput. We're comfortable with the front end of the plant.
Speaker Change: And then the original tag more of the ball mill and getting those moves too.
Speaker Change: Optimize the grind to optimize the float.
Speaker Change: To optimize the recovery that's the focus that we're in right now.
Mark Russo: So this brings me to a subject I have been flagging for some time and that is how undervalued Barrick shares are today. So to end my presentation I wanted to take you through some research based on consensus net asset value of our efforts. 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 assets in the world's most mining-friendly jurisdiction.
Speaker Change: Is balancing that we've got we're comfortable with the throughput.
Speaker Change: Comfortable with the front end of the plant, it's now making sure that we and we where we've got the a process control.
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.
Speaker Change: Into the into.
Speaker Change: Into the flow sheet and now its really teaching.
Speaker Change: Process control to be able to optimize that balance between a grind.
Speaker Change: And and not drifting up the circuit and and the flotation.
Speaker Change: In the end and I was there just the other day and all the float cells. All working everything is working not just optimizing that balance. So the big focus was get the throughput to a point, where we are comfortable with our ability to make that throughput and now we're working on the.
Mark Russo: 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 unrealised value embedded in barracks within Barracks portfolio. Nevada Gold Mines, on its own, 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.
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 size or grind the the the the grind bracket and not over grinding it or under grinding it. Second question.., both for Carlin and Cortez, the stripping rates picked up, and I noticed in the MD&A it said it would be largely complete in mid-December. Don't forget to check out Humber Asylum's Channel for special TB Sailor Jazmine for Hot TV Comments!
Speaker Change: The optimization of the.
Speaker Change: Of the actual.
Speaker Change: Design criteria, which is recovery in Florida, and gravitas or ground there.
Speaker Change: The the the the Groton bracket and not over broadening it or underground east.
Speaker Change: My second question.
Speaker Change: For Carlin and Cortez stripping rates picked up.
Speaker Change: At Cortez and I noticed in the MD&A. It said it would be largely complete in mid 2025. So the rates of Iraq Independent I think it's 13 to one is that going to continue until Q2 of 2025 is not the case.
Mark Russo: The analysis supplies a similarly conservative market multiple to our copper assets, in line with copper peers, although again I would note that the recent BHP London Transaction described significantly higher multiples to those undeveloped copper assets in Argentina. Again, the analysis is based on the current analysis consensus navs, but we expect these navs to increase, as we will be publishing updated feasibility studies on our key growth projects at the end of the year.
Speaker Change: Come down, we so look cortez as former crossroads and and Arturo.
Mark Bristow: Also watch alot of the Greg Arnold Podcast now, check out my channel here on YouTube. 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 sulphide, or Refractory. 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: And.
Speaker Change: That's a big focus on getting a particularly crossroads sorted out and then in.
Speaker Change: And we are in on top of that you know the team has done an excellent job on getting their head around.
Speaker Change: The crossroads challenges, which were largely variations in the actual ore body between oxide and sulfide.
Speaker Change: Or refractory ore.
Mark Russo: As you can see from the table, on the basis of the analysis, the value of just our interest in the Nevada Gold Mines and our copper portfolio alone exceeds our current market cap. In fact, 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 1 Gold Mines outside Nevada, the World Class 4 Mile Project, other Gold Mines and Development Projects still in the pipeline, and our exploration team's unparalleled success in uncovering new answers.
Speaker Change: And so yes, the wheel will come off a little bit but the.
Speaker Change: Cortez has.
Speaker Change: In my mind is is in good shape the.
Speaker Change: Seven seas failure in gold quarry pit is the one that we wrestling with it at the moment and you know that's a that's a pit with a history of failures and I remember I think that 2000 and non failure, which was the.
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 John Tumazos, I think this is phase six. So, so right now we've got a pile of, um.., of Geotexts, and really you've got to go to the Geotexts from Arizona and around there, not the Geotexts from here, because it's completely different rocks, young, a lot of clay, a lot of water in the pebbles, pit sidewalls higher hydrostatic pressure.
Speaker Change: Sort of play what's part of the put through its phase two cool.
Speaker Change:
Speaker Change: I think this is the phase six.
Speaker Change: So right now we've got a pile of.
Mark Russo: 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 did 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, 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.
Speaker Change: G O Tex and really you've got to go to the G. It takes from Arizona and around there not a G O Tex from.
Speaker Change: Yeah, because it's completely.
Mark Russo: Clearly, Barrick represents an investment opportunity unmatched in our sector and I hope you will 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.
Speaker Change: Completely different rocks young a lot of play a lot of water in the in the.
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 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. So to round out the top five, Turquoise Ridge.
Speaker Change: But sidewall is higher.
Speaker Change: Hydrostatic pressure. So we are busy working with that not to redesign that pit.
Speaker Change: Short term is to be able to.
Speaker Change: Get back into the pit.
Speaker Change: At seven seas position and longer term is how does that look in and in and in the longer term life of mine and how much do you have to lay it backhaul can you.
Speaker Change: Design, the sidewalls differently by dewatering, the pets and that's what we were looking at at the moment and so that will update you more on when we get to the end of the.
Speaker Change: So to round out the top five at turquoise Ridge and could you just give us a little bit more color on how the rest of the year evolves there I did notice that the.
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.
Speaker Change: Grades in the auto claims dropped and I'm, just not sure why that happened with the grades and the underground ramping up some.
Speaker Change: At Turquoise Ridge is all about baffle.
Speaker Change: And putting in that infrastructure. So we made a conscious decision.
Speaker Change: To slow down in the morning are the proceeds of the mining and processing right. We've got lots of stockpiles. So that's what you see.
Mark Bristow: So that's what you see and getting on top of the, 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.
Unknown Executive: Where do you want to start here in the auditorium?
Speaker Change: And getting on top of the.
Speaker Change: All the backfill infrastructure.
Speaker Change: And what we've done now and not the case of capture a catching up on the backfill. So that we both full for flexibility in the turquoise Ridge mine plan and the plan is that we.
Lawson Winder: Mark, thanks very much for the presentation. It's Lawson Winder from Bank of America. I wanted to start on copper and just ask about limona. So two questions on that particular asset. So one, the power situation in the country, I mean currently there's a reduction of 20% initially enough. For electricity availability, do you anticipate that we'll continue to improve going forward? Is there any risk that that could be reduced further?
Speaker Change: We will we will improve all the way up to the end of the that.
Speaker Change: That infrastructure, a catch up plan is working and we measure it weekly and and so yeah I'm confident that we'll get back there by the end of the year will 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 with geotechnics. 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 and that's really the big and Turquoise Ridge is a very high grade ore body. Its got some upside opportunities in it but if you don't keep fueled back full up to speed right on the face you have problems with Geo technically.
Mark Russo: And then secondly, when you think about the limona project ramping up in first production in 2028, what is the latest thinking on a power solution for that asset? So there are some plans to put extra infrastructure power and infrastructure into Zambia. We have already been awarded the capacity required to bring in the expansion in Zambia. So technically, we're cleared to draw the grid as the country itself looks to expand its infrastructure.
Speaker Change: And that's bringing safety issues as well as flexibility in money. So that's really the driver behind turquoise Ridge.
Speaker Change: Good morning.
Ralph Profiti: Thanks, Mark. This is Ralph Profiti from Eight Capital. I have two questions.
Ralph: Thanks, Mark this is Ralph <unk> from eight 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 AR in a positive way can you bring us up to date on that and then secondly, you talked about utilizing our Nevada infrastructure.
Ralph Profiti: 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?
Mark Russo: 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. And then as far as the short-term issues go, we, 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 power, third-party power from outside Zambia at a discount to the cost of generating diesel power.
Mark Bristow: 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 production, how does your long term studies look on the labor constraints? So Marley, in the disclosure, it's pretty well where it is, as you know, we believe in, are 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 Mali should benefit more from.
Speaker Change #101: Sure 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 formal does come into production. How does your long term studies look on the labor constraints.
Speaker Change #102: Okay. So Somalia Ah you know in the disclosure, that's pretty well where it is we as you know we believe in.
Speaker Change #101:
Speaker Change #103: Sharing the economic benefits of our nations asset that is mine as we mine no matter, how you own it.
Mark Russo: And we've got full backup diesel power on Sark as well. So 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 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 agreement on co-generation.
Speaker Change #104: My belief is that it's all national assets and so when the judge I took over there was a view that at Mali should benefit more problem.
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 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 two weeks ago, 10 days ago, and we are the biggest contributor into the Mali Treasury.
Speaker Change #104: It's mining industry and as you know theres no other industry that makes bigger contribution to the moly economy than the mining industry I've been in it since the very beginning.
And of course, we saying that's fine we would be very happy to do that we need to get down to the nitty gritty and looked at the models.
Speaker Change #105: We are still paying dividends, we paid a dividend two.
Speaker Change #105: Two weeks ago 10 days ago.
Speaker Change #105: And we are the biggest contributor into the Mali Treasury.
Mark Russo: So we can generate power ourselves and feed it through the grid. So we've done pretty much, I mean, we've grew up in West Africa where you have to rely on your own self to build a supply power. And so, and, and the IME team is, you know, very equipped to deal with this stuff. Every now and then we get the thing, the power delivery, I'm think, and we have to pick up on it, we've got, 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 #105: So.
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. And what we are anxious about is we don't see any merit in paying huge amounts of future cash now, because it just.., makes the future more difficult to manage. So we need to work it in a transparent way.
Speaker Change #105: The the question that we have is we are happy to do that on a percentage basis. So you know it was slightly more than 50%. For example, that's that's a good place to be for our government.
Speaker Change #105: And also it has to be it has to be affordable by the company that flew loved one quarter as a company.
Speaker Change #105: And what we all are we're all anxious about is we don't see any merits in paying huge amounts of future cash now because it just.
Speaker Change #105: Mike.
Speaker Change #106: The future is more difficult to manage so we need to work it in a transparent way our team is engaged with a C.
Mark Bristow: 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 at this point, and we have been doing so for quite a while. On the, On the question around... Full mile.
Speaker Change #107: The the President's office plus the Ministry.
Speaker Change #107: Ministry of Finance and Ministry of mines, and we are working constructively to find a way forward. That's really all I can say at this stage and.
Mark Russo: And of course, as you know, we've just commissioned the TS solar pot plant in Nevada. That's 200 megawatts. So, you know, if you look back to our experience, going back to our goal days, you know, we started with generating diesel and we went into heavy fuel. Now we gas turbine solar. So we have a very good 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 they've got lots of power, but they can't get it anywhere because the infrastructure is unreliable.
Speaker Change #107: And we have been doing so for quite a while now.
Speaker Change #107: On the.
Speaker Change #107: On the question around.
Speaker Change #107: Full mile.
Mark Bristow: Please remind me. Oh yeah, so we've put a lot of effort into labor. Labor 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 Equipment, 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.
Speaker Change #108: Remind me.
Speaker Change #109: Oh, so we've put a lot of effort into labor labor is.
Speaker Change #109: Is critical in every way today in the morning, and we again, we've just been through a restructuring we took a whole level of management out of.
Speaker Change #109: Out of Nevada.
Speaker Change #109: We are looking at a further automation repossessed and and the other thing as you know we you saw spot invest in a whole lot of new equipment mobile equipment, particularly we all we are running a trial on automation, which.
Speaker Change #109: Which will then roll out into the across the.
Mark Russo: So that was our first investment alongside or on behalf of the XAMN government. So, you know, we're very aware of it. We are not dismissing it. We recognize it as a risk, but once you understand it, then you can work to mitigate it.
Speaker Change #109: The complex.
Speaker Change #109: And we've also challenge the management on.
Speaker Change #109: <unk> up equipment, because every time you have.
Speaker Change #109:
Speaker Change #109: You don't use the equipment efficiently.
Speaker Change #109: You end up with two operators or an end and that means two operators that means six operators and so you take out a piece of equipment and suddenly you have that requirement and you can re allocate those people to different positions. So we have a training mine now.
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 processors, processing. And we are still, we could do with a little more capacity, which we are investing in, we're expanding that capability. In the U.S., the concept of, Our technical skills is not the same as in Europe and the colonies or ex-colonies like South Africa and Australia.
Unknown Executive: RBC, 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. You know, the company now 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? So, first of all, Josh, just to correct you on your report this morning.
Speaker Change #109: Full underground miners for open pit miners and for protesters processing.
Speaker Change #109: And we are still we could do with a little more capacity, which we are.
Speaker Change #109: Investing and we're expanding that capability because.
Speaker Change #110: In the U S. The concept of <unk>.
Unknown Executive: We put in the buyback approvals so that we can manage short in the market and any softness in the stock. So, our discipline is real and you've seen that through my whole career. I don't say one thing and do another. 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 as a dividend.
Speaker Change #110: Technical skills is not the same as in Europe.
And in the colony, so ex colony, Suck 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.
Speaker Change #110: And so what we're doing is building that skill into the workforce and we've doing COVID-19. We we got to a 25% turnover rate, we way back down now and and again as we've rotated to us.
Speaker Change #110: The people the people our retention of.
Mark Bristow: 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 nineteen... 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. It's, it's.
Speaker Change #110:
Speaker Change #110: Our workers that goes through the training mines, all very hot in the nineties.
Unknown Executive: As management, we got the flexibility as we go towards that point of using that money to bar 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 called bar and and and again what what we said in the in the press leases we restarted our share purchase and we'll do that within that garden that we've shared with the market.
Speaker Change #110: Because as you can imagine you got into a big operation like Nevada, and you don't you're not fully trained to operate in these big underground mines are these huge open pits.
Speaker Change #110: It's.
Speaker Change #110: It's.
Speaker Change #110: Hard to do.
Mark Bristow: It's hard to do, you know, and but when you know what to do and you're well trained then the job is so much easier. So our investment in people has been, you know... And we, and the other thing, I mean it's, you know, with the lithium market now collapsed, https://www.youtube.com.au Of course, you keep people in, too. People don't leave when you're starting to perform.
Speaker Change #110: And and but when you know what to do and you're well trained and it's the job is a much easier. So so our investment in people has been.
Speaker Change #110: Yeah.
Speaker Change #110: And we and the other thing I mean, as you know with the lithium market now collapsed.
Speaker Change #110: It is because we have remember we also the source of all highly qualified miners in the USA.
Speaker Change #110: Because we are the biggest miner in the USA. So.
Unknown Executive: And I would also point out if you look at Barrick and it's returns through dividends, share bar backs, return of capital. We're not out of filter with our peers and we still got a very strong balance sheet. And so if you look at the returns, particularly given the current share price, the returns are quite healthy against against the equity. But, you know, our objective will be, first of all, get the share price up, that's the real focus.
Speaker Change #110: That pressure has come off and and I think as as you see.
Speaker Change #110: And as as we got have got Nevada to perform.
Speaker Change #110: Of course, you keep people then to 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 to make it a one a lid.
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, of Business, rather than a corporation, which it used to be. 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? More options now, right now is access.
Speaker Change #110: Stop style of business, rather than a corporation, which is used to be.
Unknown Executive: And in the long term, we'll pay the dividends as we did as I did in Randgold Resources. And we fundamentally believe that dividends should come from the PLL 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.
Speaker Change #111: Mark Steve Green TD Securities.
Speaker Change #112: Just to stay on for Michael You mentioned.
Speaker Change #113: Do you intend to be in a position to give pre fees options by year end or had pre fees options does that mean you intend to.
Speaker Change #114: I'll take the market with pre fees level numbers like Capex and size up there for sure.
Speaker Change #115: More options now right now as excess.
Mark Bristow: 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, they... The daylight half way up a hill, and what you'd want is if you're going to put in access to, Two, two, 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?
Speaker Change #116: Because you know the one thing about gold rush is the accessibility the twin declines with exploration declines, which you made into operational declines now and that they they they say.
Mark Russo: And just probably another bit of color. This quarter is good because you see the costs are flat. 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 and and Turquoise Ridge as well. But largely we at that point where we're now starting to we've we've caught up with a lot of the development.
Speaker Change #116: They are de la halfway up the hill.
Speaker Change #116: And what you want is if you're going to put in access to.
Speaker Change #116: To.
Speaker Change #116: All bodies that are underneath our mountain you should try and get it at the value level.
Mark Russo: 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 the and build that flexibility and the underground operations. And and and a lot of that supporting capital, those sustaining capital you call it, that starts coming off as we forecast now for a while. And that and and it gets replaced by a growing growth capital as we go into the expansion of lamina and the re in the construction of of Rickardick.
Speaker Change #117: And so yeah, we're looking at different options can we access from Cortez itself. There's a option there we can we access it from the north way the metallurgical infrastructure is and what is it what's the most optimum way to to integrate.
Mark Bristow: There's an option there. 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 makes... 4-mile is that it's in a big, um... Metamorphic Halo, so it's brittle.
Speaker Change #117: Full miles infrastructure with gold rushes in infrastructure, because its a continuation of the same ore body.
Speaker Change #117: <unk> make.
Speaker Change #118: Full mall is that it's in a big.
Speaker Change #119: Made up more FIC hyla, so it's brittle.
Mark Bristow: And so the style of mineralization has changed to a breccia, the classic carlin breccia, which you know 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. 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 venging it.
Speaker Change #119: And so the the style of mineralization has changed to a break here. It's a classic Carlin bridge here, which you know there's big up Bolkiah high upgrade.
Mark Russo: And then of course, formal is a brand new asset that'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 is in in. The capital itself for the expansion is like, and Ashley Smith.
Speaker Change #120: It's interesting some of it we also are getting some of these.
Speaker Change #120: That.
Speaker Change #120: Plano ore bodies are carrying as well, which is what we didn't expect but it's a it's a.
Speaker Change #121: Very interesting for me even watching it evolved when you look at that section that that takes it really does tell you how connected the geology has become as we've drill these holes. So it didn't really exhausting OLED not to be under estimated at all.
Unknown Executive: One more question on sort of the same, Tanya, thinking you're reviewing, I do like the slide you had that demonstrates the value proposition with the stock here, and sort of the real core value drivers are wondering, you know, in the event that third-holders investors don't recognize that, with the company ever consider, you know, spinning out some assets or, you know, divesting some of these non-core positions to try to realize the value on a quicker timeframe.
Speaker Change #122: No. It was presumably you'll you'll want to let this play out for a while before making a decision on benzene and you know I've been I've always as you know I'm, a very open and transparent person so.
Mark Bristow: 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 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.
Speaker Change #122: We own it as Graham says it makes sense for.
Speaker Change #123: And it has the right to Nevada infrastructure in the conversation will continue in a transparent way and when we feel that we get to something if we do that's a value prop.
Mark Russo: 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. 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, by competent management is a challenge to deliver value, and that's a short-term opportunity, you know, it's like people saying, so, why don't you delay the capital development of your assets and give us the dividend?
Speaker Change #124: Proper value will 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 on exactly how big this prospect is.
Mark Bristow: And the first thing is to try and get a grip of exactly how big this prospect is. 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.
Speaker Change #124: Thanks.
Speaker Change #125: Okay, and neither again you.
Speaker Change #126: You made a comment when you were talking about the four miles and in that are as long as the joint venture meets our return on invested capital did you mean, the four miles.
Speaker Change #127: The return on invested capital or the joint venture itself the whole, Nevada gold mines now not just a four mile and it's and its a specific number.
Speaker Change #128: It's a blended number I can't remember that number.
Mark Russo: 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 the round-gold. We ended up at two over two times now, trading at over two times now, eventually, as we delivered on those assets. Another really good example is Freeport. You know, we try to convince Freeport to merge with us, where there were $10 billion market cap.
Speaker Change #128: So 15% IRR of 15% that are effectively using our coal prices are back with a little combination of a two year history spot and consensus.
Mark Bristow: 15% IRR. spot and consumption. It will not... It's a struggle to meet that. I've heard a lot, I promise. Okay, can we leave this room and move?
Speaker Change #128: It will not struggle to meet that.
Speaker Change #128: Cause I promise you.
Speaker Change #128: Okay can we leave this room and move.
Operator: 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 #128: Nicole.
Speaker Change #128: Okay.
Nicole: Over to you.
Mark Russo: They were resolute about their, value of their company and the importance of investing in grassberg's underground infrastructure. It took them years to get there, and they languished around the bottom end of value, under this value. But look where they're trading today. They delivered on that plan, and the markets recognized them, having been very negative to that decision to invest in that country in Indonesia. So, you know, and if you look at all, if you look at what grew BHP, it was those last century investments in high-risk development, escondida, the oil and gas, that really, the high and all, that really built that company into what it is today.
Speaker Change #130: Thank you to join the question queue. You May Press Star then one on your telephone keypad you will he antolin acknowledging your request.
Operator: You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. Daniel Major, with UBS, please go ahead. Hi Mark, Hi Graham, can you hear me OK? Hello Daniel, I can hear you.
Speaker Change #131: Youre using a speakerphone please pick up your handset before pressing any key did their job.
Speaker Change #130: Yeah.
Speaker Change #130: Yeah.
Speaker Change #132: No major with UBS. Please go ahead.
Speaker Change #132: Hi, Mark Hi, Graham can you hear me, Okay, Hello, Daniela can area.
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? I think we've, I mean, Turquoise Ridge, the autoclave maintenance is in good shape now. The process is, you know, Good.
Daniela: Hi, yes.
Speaker Change #134: Thanks for the questions Yeah, a couple of questions.
Speaker Change #135: The first one on the cost profile in.
Speaker Change #134: Nevada.
Speaker Change #136: A number of questions on it already but just to be clear.
Speaker Change #137: It is the main delta in turquoise Ridge.
Speaker Change #138: It looks like that unit cost needs to come down a lot, but is that the main delta to get towards back into the guidance range that you've completed the oh.
Mark Russo: And that's what drove Rio to get where it is, and then it had a bad patch, and it's, you know, 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. 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 #139: Maintenance and a backfill infrastructure south of the main moving parts.
Speaker Change #138: So I think we've I mean turquoise ridge.
Speaker Change #139:
Speaker Change #139: If maintenance is in good shape now the process as you know.
Speaker Change #140: Good I think the the all in sustaining cost drivers are still extra.
Mark Bristow: I think the all in sustaining costs drivers are still extra infrastructure and back full that we're putting in right now, sustaining capital. But and so that'll come off and and you 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 drama in, in turquoise.
Speaker Change #140: Infrastructure and backfill that we're putting in right now the sustaining capital.
Speaker Change #140: But.
Speaker Change #140: So that will come off and and you're you're right once we get that.
Mark Russo: 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 where we've signed up and to take 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 20 non-G.
Speaker Change #140: Mining right done and that's yet to close whereas you've got a big you you just do the math the numbers are that need to the production increase is quite high and that will definitely drive the unit cost down.
Speaker Change #140: So that's really the big driver in.
Speaker Change #140: And turquoise ridge.
Speaker Change #141: Okay. Thanks.
Mark Bristow: Okay, thanks. Um, and then just to confirm, yeah, so the key assets are Colin, Turquoise Ridge, and then of course, Pablo Villegas, that's also another key driver. Cool, thanks. And the second question I have on tax, you recognise 137 million tax adjustment around proposed settlements and chilly. Are they expected to convert into a cash payment at some point?
Speaker Change #141: And then.
Speaker Change #143: So just to confirm you said that the key assets of calling them to quite rich and then of course popping up a year ago. That's also another key driver on Costco to yeah.
Brian Macarthur: Good morning, Brian MacArthur, Raymond James. So, Mark, he highlighted how exciting formal might be but can you just go over and review because I suspect the devils 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, can Numa force you to do that step? So, let me cover this strategy and then Graham who actually negotiated the detail to him but there's nobody can force anyone to do anything in this last and certainly not under this agreement.
Speaker Change #144: Cool thanks.
Speaker Change #145: The second question I had on tax you recognized pension 77 million.
Speaker Change #146: So tax adjustment around proposed settlements in Chile.
Speaker Change #147: Are they expected to convert into a cash payment at some point can you just give us any cash implications around tax charge you recognized.
Speaker Change #148: Thanks, Dan Yes, that's correct yeah. So these are.
Graham Shuttleworth: Can you just give us any cash implications around that tax charge you recognise? Thanks, Dan. Yes, that's correct. Yeah. So these are, 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.
Speaker Change #148: As it relates to the sale of the zaldivar as in 2015.
Speaker Change #148: And as we've disclosed for some time now we've been in.
Speaker Change #148: And discussions with the government there.
Brian Macarthur: The point is, as you know, we have a partnership with Numa in Nevada and we have the right to access and utilize. Nevada gold mines infrastructure as do as does Numa. 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 all the time that formal remains 100% asset is to maximize the asset for our shareholders.
Speaker Change #148: The interpretation that they had which was for a claim that was significantly higher.
Speaker Change #148: We've now reached.
Speaker Change #148: In principle agreement to central that we're busy finalizing that agreement, which we expect to get done.
Graham Shuttleworth: So yes, that should translate into a cash payment this year. 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 renewed. Rick Adick was in arbitration.
Speaker Change #148: So kudos, so yes that should translate into a cash payment this year.
Speaker Change #148: And that I think is a very good point you make it you know if you go back to trading 19, we when we looked at this business it had lots of challenges.
Speaker Change #148: Two it.
Speaker Change #148: Tanzania wasn't operating Argentina was under threat Papa New Guinea was.
Speaker Change #148: Trying to get at renewals.
Brian Macarthur: And so, that's the work we're doing now is that we're doing, we've got 10 rigs on start to go there, it looks like the old days in Scotland. You've got, you know, just see rigs and trucks everywhere. And every intersection as you see is multi-ounce intersections and we're talking very thick, you know, breathier style or bodies. And so, our work this year is ready to get a feel of what it is.
Speaker Change #148: <expletive> was an arbitration.
Speaker Change #148:
Speaker Change #148: We had Chile, and then we had a pile of closure.
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 #148: Assets as well that we're just being kicked down the road.
Speaker Change #148: And.
Speaker Change #148: And where we are today is that you know we've as Oh boy is done in my career deal with their liabilities and then you free up and there's no better time to deal with the liabilities when you've got.
Speaker Change #148: Big commodity process.
Speaker Change #148: 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 tidings facilities or close your thoughts.
Brian Macarthur: We don't make any secret of it. It's information we share freely both of the market, our shareholders and of course Numa. And then once we've got that, we'll build to have a better view on our options. And there is a way to develop formal on a standalone basis. It is definitely a way to do it. But again, that's all in the optionality going forward and how we'll choose it.
Speaker Change #148: We're going to do another eight this year.
Mark Bristow: We're going to do another eight this year. Um.., 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 focus is, is the, 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 down the can down the road.
Speaker Change #148:
Speaker Change #148: Well, that's the target six to close your thoughts safe closure.
Speaker Change #148: And.
Speaker Change #148: Purina comes to full closure early next year.
Speaker Change #149: And we've engineered that and so so one of the lasso cause says is the.
Speaker Change #149: Nonoperating costs within the organization and we're driving those costs down and that really drives the margin.
Graham Shuttleworth: 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 specific provisions that deal with this. First and foremost, in terms of bringing the asset into the joint venture, provided that 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 #150: And and we have and I took up position.
Speaker Change #150: We are not going to kick that down the can down the road and and when you stack up Barrick to its peers. We we all on the road on the trajectory to have very little.
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 #150: The liabilities associated with non operating assets and that's a focus that we've always had so again in the mix let.
Graham Shuttleworth: And in terms of determining the value of the.., 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, 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, it gets the benefit of all of the infrastructure that's already embedded.
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. Porgra is, you know, we turned on the last of the autoclaves last week.
Let me just remind you Lee.
Speaker Change #150: 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 all.
Speaker Change #150: The significant with life of mine and and margin opportunity.
Speaker Change #150: We have dealt with the challenges we've got all the mines up and running pool grows.
Speaker Change #150: We turned on the last of the Autoclave last week. So all the water claims operating in Pola and.
Mark Bristow: So all the autoclaves are operating in Porgra. And, um... We've got a couple of non-core 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.
Graham Shuttleworth: So effectively the feasibility study doesn't carry any of the existing infrastructure. It simply looks at, you know, what the cost would be on a go-forward basis for that asset. So effectively in the case of formal, it would benefit from all of the gold rush infrastructure that's already redeveloped. And then the cost of the feasibility study itself is also something that is a part of the compensation. So in other words, on top of that market valuation.
Speaker Change #150: We've got a couple of non core assets that we might or might not.
Bring to account over the next short while.
Speaker Change #150: And then we have been dealing with these liabilities Chile of course in Chile is rapidly becoming coming and opportunity as we deal with those legacy issues, both in the form of basketball AMA and.
Speaker Change #151: Zelda ball and and and then.
Speaker Change #150: Peru, Purina, that's a big chunk of nonoperating costs that'll come out of AR.
Mark Bristow: And, and, and then. Peru, Perina, that's a big chunk of non-operating costs 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 #150: Our cash flow our cost flow.
Graham Shuttleworth: So that's the key aspects of it. So just to clarify that there's not much that's left behind in how everyone you pay full value for the for bringing a two feasibility and then the value on the basis of the feasibility.
Speaker Change #150: And so you know I am I my view is that.
Speaker Change #150: Into next year, we are different company again, as we were from 'twenty three to 'twenty, four and and and very quickly and that's why this quarter is so significant because you've got a flat cost.
Speaker Change #150: And we caught all the margin and in the commodity price, which is what that's the first step in now.
Mark Bristow: And we caught all the margins 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 GISTM. We've got nothing that's, you know, dangerous in our portfolio.
Anita Soni: Hi Mark, Anita Soni at CIBC. Hello Anita. Good morning.
Mark Russo: My question is with regards to Pablo 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%. No, I think it's all just above 80. That's correct. The final targeted recovery.
Speaker Change #150: Our future strategy and that is to sweat these assets and as soon as you get on top of that you can manage that.
Speaker Change #150: The investment in those clubs you saw so you can you know we are compliant with G. I S. T. M. We've got no nothing that's a dangerous in our portfolio and so we can start managing our nonoperating.
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 #150: Costs are as we go forward, so that's where the company is today.
Mark Russo: Salmon are you on the call? Yes, I'm here. What's the targeted recovery rate for PV? Ultimately, Mark Hill? So it's an incremental over the next couple years. We lift 79 and then step up from 80s. Yeah, I don't think it's 92, but Mark, are you Mark Hill? Are you on the call? Not on the call. John Seale? 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 the exact number of Q4 though.
Speaker Change #152: Great. Thanks, and just one more if I could and this is just coming back to the.
Daniel Major: 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 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 additional buybacks in the second half? 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.
Speaker Change #153: Discussion on the buyback and the dividend trillion stand the opportunistic low Jacobs 50 million, but if we look at go forward basis.
Speaker Change #154: Should we just assume that.
Speaker Change #155: You're going to be opportunistic, but from a modeling standpoint that you run the balance sheet down towards a net cash position before factoring any kind of meaningful.
Speaker Change #155: Additional buybacks in the second half.
Speaker Change #156: So we are going to be buying back on are considered fashion building on what we did last quarter and so we'll manage it grabbing all manage it.
Mark Bristow: We have got, you know, we share the strategy with our board. Everyone's happy with what our plans are. 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, is stuck to our own rules. Some of our peers don't do that. They say one thing do another.
Speaker Change #156: We we are we have got you know we share that strategy with our board everyone's happy of what their plans are and.
Speaker Change #156: At the same time, we are mindful of the 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 an end and the one thing that we've always done.
Mark Russo: I'll have to look down and get back in. So that's the number I have in my head, the mid 80s. And we're targeting, as you see, end of this year at 80, then 82, and the 85, 86. And each of the focus at the moment is Like, I'm sure you've listened to this sort of line before, many times in the industry, this is a single tag mall, and then the original tag mall with a ball mall, and getting those malls to optimize the grind, to optimize the float, to optimize the recovery.
Speaker Change #156: It's stuck to our own rules.
Mark Bristow: 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, 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 frame?
Speaker Change #156: Yeah, 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.
Speaker Change #156: Look at ways to be able to.
Speaker Change #156:
Speaker Change #156: Intervene when the when the.
And in the end you know through my career I've had.
Speaker Change #156: I had to deal with a number of short positions in the stock and other thing.
Speaker Change #156: They're not too many people who would take a big short position in Barrick.
Mark Russo: That's the focus that we're in right now, is balancing that. We've got, we're comfortable with a throughput, we've comfortable with the front end of the plant, it's now making sure that we, and 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 flow sheet. And I was there just the other day, and all the float cells are working, everything's working out, just optimizing 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 the optimization of the actual design criteria, which is recovery and grant us. Or grant the grant bracket, and not overgrinding it or undergrinding it.
Speaker Change #156: Hey.
Speaker Change #157: You want to add to that fab.
Fab: Yeah, I mean, I, just Dan just to reiterate them.
Graham Shuttleworth: [inaudible] 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 on a measured basis, We'll continue to have very low debt to EBITDA ratios by any metric.
Speaker Change #159: We you know we have an exceptionally strong balance sheet and notwithstanding that to you.
Speaker Change #159: We've got these big capital growth projects ahead of us and that's the position we like to maintain but you know even if we do continue to buy back shares as Mark says on them on a measured basis.
Mark: We will continue to have very low debt.
Mark: Debt to EBITDA ratios by any any metrics yet.
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.
Mark: We're afforded the opportunity to take advantage of.
What we see is exceptionally good value in the stock, but still on a very measured basis.
Speaker Change #160: Very clear thanks, a lot.
Mark: Okay.
Mark: The next question comes from Bob Brackett with Bernstein Research. Please go ahead.
Bob Brackett: Good morning, just a couple of questions related to the feasibility studies that we're looking forward to seeing by the end of the year and anything you can tease on those feasibility studies in the MD&A you talked about the approximately $2 billion of Capex around 150 million tons.
Robert Brackett: 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. Anything to say around Recadec?
Mark Russo: Second question, both for Carlin and Cortez, the stripping rates picked up 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, I think it's 13 to 1, is that going to continue until Q2 of 2025, is that the case? Yeah, it will come down, so look, Cortez is for crossroads, and Arturo, and that's a big focus on getting particularly crossroads sorted out, and then, and we're on top of that.
Bob Brackett: 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. So, and many times, if you worry about it and do nothing, then they also go wrong. So. 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 #162: Thing to say around record dates and what are the things that you're.
Speaker Change #163: That would worry you between now and the released the feasibility studies in terms of moving these projects forward.
Speaker Change #164: So I would say if you don't worry about capital projects. They always go wrong.
Speaker Change #165: [laughter] and many times, if you worry about it and do nothing then they also go wrong. So.
Speaker Change #164:
Lamont M: But the mine is in a good place and you know the end and Lamont M washes its face at the expansion that $3.
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 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 assumptions 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.
Lamont M: Ah Ah pounds. So it's you know theyre not many couple of assets that do that and as you know there's a couple of industries being saying Jacques the copper price up and we'll develop the asset.
Mark Russo: You know, the team has run an excellent job on getting their head around the crossroads challenges, which were largely their reactions in the actual all body, between oxide and sulfate, or refractory all. And so, yes, it will come off a little bit, but Cortez in my mind is in good shape. But the 70 failure in Goldquarry Pit is the one that we're wrestling with at the moment, and you know, that's a pit with a history of failures.
Lamont M: And so and that's an expansion.
Speaker Change #167: We've got the one circuit, we affectively duplicating that circuit.
Speaker Change #167:
Speaker Change #167: And so we don't see the big focus on Yamana is the fleet and the efficiency of mining and the cost of money that's out focus and we've got a new fleet will be expanding that fleet and everything that we've we monitoring at the moment, we're comfortable with our assumptions.
Speaker Change #168: And they don't recur <expletive>.
Speaker Change #168: Right now we are in the final negotiations of long lead items looking at numbers.
Mark Russo: And remember, I think the 2009 failure, which was the sort of play white part of the pit which they used to call, I think this is phase 6. So, right now we've got a pile of.., of geotext, and really you've got to go to the geotext from Arizona and around there, not the geotext from here because it's completely different rocks, young, a lot of clay, a lot of water in the pit sidewalks, high hydrostatic pressure.
Speaker Change #168: And there's no material change in our original estimate and by the way we Gotta do.
Mark Bristow: And by the way, we're going to do a webinar on La Moina on 11th of September to share sort of some color on La Moina, as we did with Rikidex. And that'll free us up to spend a little bit more time on Rikki Dik at Investor Day, in November.
Speaker Change #168: A webinar on.
Speaker Change #168: The more or not.
Speaker Change #169: The 11th of September two shares.
Ricky: Some color on the Armada as we did with Ricky <expletive> and.
Ricky: And that'll that'll free us up just made it a little bit more time on Rick a deck at the Investor day.
Mark Bristow: But on record too, 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. 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 #171: Vanda, so but on record there too is you know there's been swings and Roundabouts. We've we've made very good progress without water strategy infrastructural a strategy a gram is progressing.
Mark Russo: So we're busy working with that now to redesign that pit. Short-term is to really get back into the pit at the 17th 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 design those sidewalks differently by dewatering the pit, and that's what we're looking at at the moment. And so that will update you more on when we get to the end of the year.
Speaker Change #171: Progressing the financing options.
Speaker Change #171: You know I think everything is Ah theres nothing there that's not in line.
Speaker Change #172: With our original assumptions that we shared with you going forward do you want to add to it.
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. We're going to do a good update in September. You'll get some color on it.
Vanda: And I think that's a good summary, I mean, there are some.
Vanda: Cool.
Vanda: Design changes that have come through the feasibility as you would expect so.
Vanda: For example, you know we are.
Mark Russo: So to round out the top five turquoise ridge, can 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 backfall and putting in that infrastructure. So we made a conscious decision to slow down the mining and processing rate.
Vanda: Compared to the original feasibility we were anticipating using rail and so there's infrastructure associated with that but they're also benefits of that coming through in the financial muscle and so all of that will be it will be showcased them at the end of the year when we complete the pizza happens he's done.
Speaker Change #174: Very good.
Speaker Change #174: Good updates 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 colour out there and the final feasibility will come out in the beginning of the new year. We have a market. What kind of drill density are you looking for to get to the indicated and the inferred categories by your end?
So I'm sorry, that's been a little more than one of them will be September and then obviously with the Investor day in November there'll be some more color there on the final feasibility will come out in the beginning of the new year.
Mark Russo: We've got lots of stockpile, so that's what you see, and getting on top of the backfall infrastructure, which we've done now. Now, in our case of catching up on the backfall 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, you know, I'm confident that we'll get back there by the end of the year.
Speaker Change #175: Thank you Sir.
Speaker Change #174: We have a well.
Speaker Change #175: Okay.
Just to follow up on for a while what kind of drill density or you're looking for it to get to the indicated and inferred categories by year end.
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 full. I'm not sure we can answer that question yet. Simon, do you want to add to that? What drill density?
Speaker Change #176: No we're not gonna be there by year end.
Speaker Change #177: So there'll be some of the way there, but not for I'm not sure. We can answer that question yet.
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 for 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 with, 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?
Solomon: Solomon do you want to add to that what drove the entity.
Solomon: I think we know what we've got to get to but that's still some tunnel, that's somebody who isn't it.
Mark Russo: We'll have caught up the plan. And that's really the big. And turquoise ridge is a very hard grade. All bodies, it's got some upside opportunities in it. But if you don't keep your backfall up to speed right on the base, you have problems geotechnically. So, and that brings safety issues as well as flexibility and mining. So that's really the driver behind turquoise ridge.
Speaker Change #179: We know what we're targeting sorry for indicated we'd be targeting in the region of 70 to 75 meters based on the current geological models, but.
Speaker Change #180: That's being reviewed through the course of the preliminary economic assessment at the moment, Yeah, we're targeting for the year and will really be a.
Speaker Change #181: All right.
Speaker Change #181: On the larger potential up the project.
Speaker Change #181: And as well as narrowing down as Mark was alluding to earlier some of the different options that we will focus on building a pre feasibility study.
Unknown Executive: Good morning. Thanks, Mark.
Ralph Profiti: This is Ralph Proffiti from Eight 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 #182: Anybody else on the telephone.
Michael Parkin: The next question comes from Mike Parkin with National Bank. Please go ahead. All right, guys. Thanks for taking my question. Congrats on the good quarter. Just a question on the Thiebaud Deco relocation work.
Speaker Change #182: The next question comes from Mike Parkin with National Bank. Please go ahead.
Alright, guys. Thanks for taking my question and congrats on the good quarter.
Mike Parkin: Question on the T Bill Oh relocation work and it seems like everything is off to a good start but quite a few things.
Mark Bristow: 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. And so I was there just the other day.
Speaker Change #184: 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.
Ralph Profiti: And then eventually when four mile does come into production, how does your long term studies look on the labor constraints? So Mali, you know, in the disclosure, it's pretty well where it is. We, as you know, we believe in, and sharing the economic benefits of the nation's asset, as mine as we mine, no matter how you own it, our my belief is that it's all national assets. And so, when the Junter took over, there was a view that Molly should benefit more from its 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.
Mike Parkin: That's kind of the main item to stay.
Speaker Change #184: Two is on <unk>.
Speaker Change #185: But of course are the preferences to relocate the key communities upfront. So that you don't end up.
Speaker Change #186: Try to too heavy.
Speaker Change #187: This works and and have communities move.
Speaker Change #188: Moving through at or around the footprint and so I was there just the other day a we've got a couple of hundred houses now in our construction and they and we adding to them all the time.
Mark Bristow: 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 centers and everything else that goes in an integrated community.
Speaker Change #188: We are working with the communities and will relocate the communities.
Ralph Profiti: And of course, we saying that's fine, we would be very happy to do that, we need to get down to the energy 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. So, 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 a good place to be for a government, and also it has to be affordable by the company, that's Lulagon Quotto as a company. And what we are anxious about is we don't see any merits in paying huge amounts of future cash now, because it just makes the future more difficult to manage.
Speaker Change #188: On a priority basis.
Speaker Change #188: And that's really a moving people from sort of <unk>.
Speaker Change #188: Rural areas into an urban situation and with it comes food security and so it's quite a complex.
Speaker Change #188: And it comes with schools and.
Speaker Change #188: Community sentences in and everything else that goes in our integrated community.
Mark Bristow: Um, 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, so That'll be the next big step. Right now, we're expecting to bring the, the dam into production at the back end of 2027, early 2028.
Speaker Change #188: The.
Speaker Change #189: C G O tick the the next step in this process is the completion of the feasibility of the dam itself and that's due this quarter. So.
Speaker Change #189: That'll be the next big step right now we're expecting to bring them.
The Dab into production at the back end of 'twenty 'twenty seven.
Speaker Change #189: Early 'twenty 'twenty, yet so that's.
Mark Russo: 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 Minds, 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.
Speaker Change #189: Yeah, it's still well within our.
Mark Bristow: So that's uh... yet we still well within uh.., 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. Who are you having any issues with?
Speaker Change #189: Plans and right now there's no no emerging critical path.
Speaker Change #189: I think everything is as in this phase of a capital project everything.
Assumed critical.
Speaker Change #190: Are you having any issues with.
Mark Russo: On the question around four miles, just remind me. So, we've put a lot of effort into Labour. Labour 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 Nevada. We are looking at further automation, reposition, and the other thing is, you know, you saw a spot invest in a whole lot of new equipment, mobile equipment particularly. We are running a trial on automation, which we will then roll out into across the complex, and we've also challenged the management on talking up equipment, because every time you don't use the equipment efficiently, you end up with two operators, and that means two operators and means six operators.
Mark Bristow: Um... Initially, when you studied housing, did you feel like you had a personal integration in what occurred? 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. It's pretty hard to deny a picture.
Speaker Change #190:
Speaker Change #191: Suddenly new.
Speaker Change #191: Regional residents you know trying to capitalize on getting a news have likely heard in the past in certain.
Speaker Change #192: Certain situations, mostly in Africa, any kind of activity. There you guys have a pretty good sense of.
Speaker Change #192: Do some sort of paper.
Speaker Change #192: Paperwork to know who you have to deal with versus some of the people trying to be strategically advantageous of the situation.
Speaker Change #192: So Mike we always have that you know you have people to exploit the opportunity Nowadays a satellite imagery is very helpful in that and managing who was there and who wasn't its pretty hard to lie with a you know.
Mike Parkin: To deny a picture.
Mike Parkin: I think but.
Mark Bristow: 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. As you know, we went through a very extensive process to select the site with government, with, uh, with, uh, Civil Society, with the Catholic Church, you know, the whole Cattucci family, and and under the lease agreement that that we operate, Pablo Verhoeven is the responsible, the government has a responsibility to participate in the relocation and payment thereof, so it's a joint process.
Mike Parkin: It's part of the whole social engagement is dealing with yeah people who.
Mike Parkin: Exploit this situation, who take the opportunity to sort of claim things and we work with that all the time. That's a you know this is a community we got to live with for a very long time. So we we manage that so that the positive side of.
Mark Russo: 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 protestors, 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 US, the concept of of Technical Skills, is not the same as in Europe and the colonies or ex colonies, South Africa and Australia.
Mike Parkin: Of where we are today as you know we went through a very extensive process to select the thought with government with a with a civil society with the Catholic Church, you know the whole co tucci.
Mike Parkin: And and under the.
Mike Parkin: Lease agreement that that we operate.
Speaker Change #193: Pueblo Viejo and is the response of the government has a responsibility to participate in the relocation and payment thereof. So it's a it's a it's a joint process.
Mark Russo: And so what we're doing is building that skill into the workforce. And during COVID, we got to 25% turnover rate. We're way back down now. And again, as we've rotated out people, the people, the people, the[inaudible] as you see, as we have got Nevada to perform, of course you keep people into, 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 style of business rather than a corporation which it used to be.
Mark Bristow: But right now, you know, it's 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 pointed out, other people who are wanting to participate in the benefit.
Speaker Change #193: But right now you know it's out community.
Speaker Change #193:
Speaker Change #193: The people that all all working with the relocation.
Speaker Change #193: Committees that all set up for each community.
Speaker Change #193: And and then various other authorities and from time to drop Tom as you played out.
Other people, who are wanting to participate in the benefit.
Speaker Change #193: Alright, thanks, very much mark.
Mark Bristow: Alright, 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.
Speaker Change #193: Yeah.
Speaker Change #194: The next question comes from Tanya to cross connect with Scotiabank. Please go ahead.
Tanya: Oh, great. Thank you.
Tanya: My question.
Speaker Change #196: Good afternoon, everyone.
Tanya Jakusconek: I just wanted to come back to just how the rest of the year, evolved. And I just wanted to make sure I understood correctly. So just on the Nevada goldmines which is going to be driven by Carlin, you know, to better grades and Turquoise Ridge as well with better grades. Am I to assume that the volume is going to come by you processing those higher grade stockpiles at Turquoise Ridge as you've worked on the Haystown in the underground and then the cost reduction also comes in not only volume but due to the elimination of the contract workers as you go into soft mining? Is that a correct understanding? Broadly, yes. I.
Speaker Change #197: To them.
Speaker Change #198: How the rest of the year.
You know involved in I, just wanted to make sure I understood that correctly.
Speaker Change #198: Yes.
Speaker Change #199: The Nevada gold mines, which is going to be driven by Carlin.
Speaker Change #199: Great and carefully.
Speaker Change #200: Wow with better grades.
Speaker Change #200: And.
Speaker Change #200: Volume.
Speaker Change #200: By year end.
Kerry: Oh, Great Stockpiled Kerry. Please go ahead Sir.
Speaker Change #202: Our company right now in the underground and then the car.
Speaker Change #202: Cost reduction also comes in not only volume, but it should be elimination.
Speaker Change #203: I'm curious as you go.
Speaker Change #205: Mining is that a correct understanding.
Speaker Change #205: Broadly yes.
Speaker Change #205:
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, I mean talking about Carlin and Turquoise Ridge in particular. Okay. And have you seen the pickup?
Speaker Change #205: Yes broadly the the throughput is not you know it gets tempered because what.
Speaker Change #205: What drives the greatest underground and.
Speaker Change #205: And let's open pit ore, so that that impacts the throughput numbers as well, but but broadly you're right is a it's really a grade.
Steve Green: Mark, Steve Green, tedious securities.
Brian Macarthur: Just to stand for a mile, you mentioned that you intend to be in a position to give pre-fee's options by a year end or have pre-free's options. Does that mean you intend to update the market with pre-fee's level numbers like CapEx and size, therefore? Sure.
Speaker Change #205: I mean talking about calling in and turquoise ridge in particular.
Speaker Change #205: Okay.
Tanya Jakusconek: Because it's a month and a half now into the quarter into Q3, have you seen the pickup in the grades? Sure. Thank you for that. And just similarly at Pueblo Viejo, I just want to 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 #207: Have you seen that pickup.
Speaker Change #208: You bet.
Mark Russo: 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. [inaudible] Dick, four mile, is that it's in a big metamorphic halo, so it's brittle. And so the style of mineralisation has changed to a brickia, the classic Coilinbretia, which is big up bulkier, higher grade. It's interesting, we also are getting some of these flatter planar or bodies occurring as well, which is what we didn't expect. But it's a very interesting, 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 #209: Q3 have you seen that pick up in the great.
Cool.
Speaker Change #209: Okay.
Speaker Change #210: Thank you for that.
Speaker Change #210: Similarly at <unk> capital.
Speaker Change #211: I just wanted to make sure I understand and thank you. So much that's like a 78.
Speaker Change #210: I'm just looking at it right now.
Speaker Change #212: Oh, sorry, 79 in Q3, and then into Q4 and he said he's got 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.
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?
Speaker Change #213: You see recovery.
Mark Bristow: 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 #213: Yes.
Speaker Change #213: I would say that Tanya as you know are we seeing it more than we're not seeing it.
Speaker Change #213: So it's still very much part of this is a refinement I think that's why do we gotta get across this is not a magic box. This is yeah. This is sac billing.
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 bull 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 really drives the fuel content, and that drives the oxidation.
Speaker Change #214: At its most challenging we've got a very big single Sag mill that joined the Sag ball mill flow sheet.
Speaker Change #214: And and we've just settled with the construction of the new conveyor belt. So we've got the extra crushing capacity.
Speaker Change #214: And now it's about making sure that we get the grind parameters rot and when do we get the grind right. We get the float dropped when we get the float rot.
Speaker Change #214: We can feed the autoclave is.
Speaker Change #214: Appropriately and.
Speaker Change #214: And in the whole flow sheet logic called P. V is to increase the sulfur content of the feed into the autoclave switches really drives the fuel content and that drives the oxidation and what we have done in the interim which I shared last time is we did.
Mark Russo: So it's a really exciting all-body, not to be underestimated at all.
Graham Shuttleworth: 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 flowsheet.
Mark Russo: So presumably you'll want to let this play out for a while before making a decision on Ben-June. You know, I've always, as you know, I'm a very open, transparent person. So, you know, we own it as Grant says, it makes sense for, you know, to actually, and it has the right in Nevada infrastructure and the conversational continue in a transparent way. And when we feel that we get to something, if we do, that's our proper value, we'll make that decision. But to your point, we've got a way to go before we get there.
Speaker Change #214: Right.
Speaker Change #214: Their readiness to that so we can still feed.
Speaker Change #214: Run of mine ore into some of the autoclave. So we can reconfigure them to take run them on line or but it's really about the grind size that that we've got a.
Speaker Change #214: Work harder on them and that's all about the control.
Speaker Change #214: The processing control that we've put into the the milling and.
Speaker Change #214: And screening side of the flow sheet, So it's really technical.
Mark Russo: And the first thing is to try and get a grip of exactly how big this prospect is.
Graham Shuttleworth: 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, uh... on a consistent basis and then we'll meet our objectives and without a doubt in my whole career I've been through these, ...processes, they're frustrating and... And, uh, stressful, but at the end of the day, we get to where we want to get.
Speaker Change #214: 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 on a unit per hour basis that we need to get.
Unknown Executive: Thanks.
Mark Russo: And neither 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 mine? No, no, it's just a four-mile and it's a specific number. It's a blended number, I can't remember the action number. The IR is 15% IRR. 15% but effectively using your tool. The old process of backward look combination of two-year history, spot and consensus. It will not struggle to meet that hurdle I promise you.
Speaker Change #214: On a consistent basis, and then we will meet our objectives.
Speaker Change #214: Objectives, and without a doubt my whole career I've been through these.
Speaker Change #214: Processes, they frustrating and.
Speaker Change #214: And stressful, but at the end of the day, we get to where we wanted to get to.
Speaker Change #215: Yeah, and just on something that would be.
Graham Shuttleworth: Yeah, and just on something that Anita had mentioned, the 92% recovery, and I know that, you know, you're corrected up 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. Thank you. Hi Tanya, it's Graham.
Speaker Change #215: And the 92%.
Henry and I know that.
Speaker Change #216: You know you.
Speaker Change #215: Correct.
<unk> 80.
Speaker Change #217: I was under the assumption as well that we were getting to 92.
Speaker Change #217: Just wondering if it's just.
Speaker Change #218: Iraq collection from the mine tour or something has changed.
Speaker Change #218: Some clarity on that would be great. Thank you.
Graham Shuttleworth: You are correct that in the feasibility 4101, we do go up to the 90s. It's a graduated process, so 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.
Unknown Executive: Okay, can we leave this room and move to the call? Okay, operator, over to you.
Graham: Hi, Tanya it's Graham.
Speaker Change #219: Correct that in the feasibility.
Speaker Change #220: Feasibility 41 out of 343, one and one we do go up to the the the nineties.
Speaker Change #221: It's a graduated protests. So I'm you know it takes us a while to get up there.
Unknown Executive: Thank you. To join the question, Q, you may press star and one on your telephone keypad. You will hear tone acknowledging your request. If you're using a speaker phone, please pick up your handset before pressing any keys to withdraw.
Speaker Change #222: Okay that'll be an Graham it's tough to get there it's just not.
Speaker Change #222: Really over the next few years is that correct.
Graham Shuttleworth: Is that a correct statement? Yeah, definitely not this year, as we pointed out. Do we get there next year? You know, the following year...
Speaker Change #222: Definitely not this year as we pointed out.
Neil Major: Neil Major with UBS, please go ahead. Hi Mark, how are you? Can you hear me?
Speaker Change #222: Can we get there next year.
Speaker Change #222: Note the following.
Tanya Jakusconek: Okay, thank you on that as well. And if I could ask about, Mark, I always ask about reserve replacement. I would like to know what, you know, how we look going forward. So as you, you know, you're eight months into the year, how does reserve replacement look for you this year?
Speaker Change #223: All right. Okay. Thank you on that as well.
Mark Russo: Hello, Dan, you are. Thanks for the questions. A couple of questions. The first one on the cost profile in Nevada. I've seen a number of questions on it already but just to be clear. It's 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 back into the guidance range as you've completed the auto-played maintenance and the backfill infrastructure?
Speaker Change #224: If I could ask them out.
Mark: Mark I always asked about reserve replacement.
Speaker Change #225: I would like to know what you know how we look.
Speaker Change #226: Going forward, so as you know.
Mom: Mom centric a year how does the reserve replacement for you this year.
Speaker Change #228: So from that you know from my perspective very recently.
Mark Bristow: Both from a, you know, from from a mine site perspective versus resource. And then, you know, the critical question of, you know, 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 on to Simon Bottoms to do the detail.
Speaker Change #228: And then you know the critical question that you know you know what.
Speaker Change #229: Gold price, that's 2400 class that's.
Mark Russo: Is that the main moving part? I think we've in turquoise reds, the order of maintenance is in good shape now. The process is, you know, good. I think the all in sustaining cost drivers are still the extra infrastructure and back full that we're putting in right now, sustaining capital, and so that will come off and you're right. Once we get that, my mining rate done, and that's, you know, turquoise reds 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 done. So that's really the big driver in turquoise reds.
Speaker Change #229: The thought of having to change our reserve and resource pricing.
Speaker Change #230: So I'll answer the easy part of that question and then pass on to solve and bought them is to do the detail.
Speaker Change #230: The the.
Simon Bottoms: 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 Rikidek and and the Lamarna Superfit. Um, having said that, uh, the, you know, Kabali, Lulogon, Kata are also in good shape to replace.
Speaker Change #231: Where are we at the moment is with the two big feasibility studies.
Speaker Change #232: More than replace reserves and resources. These are big numbers, both in gold and copper coming out of Rick of DIC and <unk>.
Speaker Change #233: And the honest truth of it.
Speaker Change #233: Having said that the you know.
Speaker Change #234: Nobody Lula gotten caught all of a sudden in good shape to replace.
Speaker Change #235: P V is slightly.
Simon Bottoms: PV is slightly... You know, 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, and uh... and the big focus right now in Papua New Guinea is really getting the mine up and running we've got a ten year life of mine there's work to do to be able to uh... add additional uh... 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?
Speaker Change #235: P V. We added that we took the reserve to 21 million ounces last year. So that's a big number and although the geologist saw pointing to additional opportunities, it's not going to come in.
Mark Russo: Okay, thanks. And then, yeah, just to confirm, yeah, so the key assets are calling turquoise reds and of course, probably a year ago, it's also another key driver on cost for the, yeah. Cool, thanks. And the second question I have on tax, you recognize, I'm sure, 37 million tax adjustment around proposed settlements and chili. 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?
Speaker Change #235: And Ah and the Big focus right now and 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.
Speaker Change #235: Add additional.
Speaker Change #235: Reserves to that life of mine and so it does just on a broad level, that's the sort of the way we look at it.
Speaker Change #235: Simon do you want to pick up on that.
Simon Bottoms: Yeah, sure. 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-Dick, as Mark's already said, that is forecast to make a substantial growth for that region.
Simon: Yeah sure so.
Simon: That's not bad.
Simon: Yeah Yeah.
Simon: Africa Middle East is looking positive to replace it it's over or regional deflation again.
Mark Russo: Thanks, Dan. Yes, that's correct, yeah. So these are, this relates to the sale of the Zoldovar asset in 2015. As we've disclosed for some time now, we've 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 an in principle agreement to settle that we're busy finalizing that agreement, which we expect to get done in the third quarter.
Speaker Change #237: Again, as we've already pointed out in some of the releases is really driven by those core tier one assets, they're not calling them, but we're still seeing strong indications that we will be able to continue that in Tanzania as well.
Speaker Change #237: Latin America region.
Speaker Change #237: The assets are all cost fully replace that deflation. This year with the addition of <unk> small or do you say.
Paul Coster: Paul Coster.
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.
Greg: Cause substantial Greg how about region within North America for Nevada Gold mines again, where we're currently working through the models, but we are forecasting to replace all deflation.
Mark Russo: So yes, that should translate into a cash payment this year. And Dan, I think it's a very good point to make, you know, if you go back to 2019, 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 its renewals. Rikkadek was an arbitration. We had chili, and then we had a pile of closure assets as well that were just being kicked down the road.
Paul Coster:
Speaker Change #239: Alright within N G M, particularly where we are.
Speaker Change #240: Thanks to the.
Speaker Change #240: Studies and particularly in the reserve.
Speaker Change #240: Reserve pricing, we are where we are seeing some cost pressures were looking at that.
Speaker Change #240: Pricing at the moment, we're doing the studies and we will be we'll be looking to announce mitra in a year, where we stand with that but our intention as has always been is to maintain the quality of our mine plans and because a lot of our mine plans at <unk>.
Simon Bottoms: Our intention, as has always been, is to maintain the quality of our mine plans. Because a lot of our mine plans are more geologically constrained, 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.
Mark Russo: 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'd free up, and there's no better time to deal with the liabilities when you've got big commodity process. So we've really focused on those liabilities, and we're on top of them. We've done our first two safe closure trainings facilities or closure sites. We're going to do another eighth this year, or that's the target, 68 closure sites, safe closure.
Speaker Change #240: More geologically constrained whereby we actually we even with the current reserve price we.
Mine the majority of the high quality high grade material. So when you lift that reserve price.
Simon Bottoms: Therefore, we evaluate it on a asset-by-asset basis to ensure that any increases or change in reserve price would add material that would actually drive value and not just bring extra capital requirements through additional process plant expansion requirements. Resource pricing, 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. Okay, I really, really appreciate that and thank you very much for taking my question. Pleasure. 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 #240: Inherently just add marginal material I'm, sorry, therefore, we evaluate it on a asset by asset basis.
Speaker Change #240: And to ensure that.
Speaker Change #240: Any increases in or change in reserve price would add material they would actually drive value and not just bring extra capital requirements through additional plant process plant expansion requirements.
Mark Russo: And Perina comes to full closure early next year, and we've engineered that. So one of the last focuses is the and the non-operating costs within the organisation. 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 down the can down the road. 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.
Speaker Change #240: Resource pricing I think we we reviewed all of our resorts.
Speaker Change #241: If a company last year and that's.
Speaker Change #241: So very much in line with long term consensus at the moment.
Speaker Change #241: Oh I'd expect we'll be looking at a long time resource pricing this year.
Speaker Change #241: Okay.
Speaker Change #242: Thank you.
Speaker Change #243: My question.
Speaker Change #243: Pleasure.
Speaker Change #243: In Asia.
Speaker Change #244: The last question comes from Daniel Major UBS. Please go ahead.
Speaker Change #244: Hi.
Speaker Change #245: Thanks for the follow up just a couple of quick ones small modeling done IMAX.
Mark Russo: And that's the focus that we've always had. So again, in the mix, let me just remind you, 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.
Speaker Change #246: It looks like G&A, so perhaps exploration is running a little bit below your guidance.
Daniel Major: 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. So we we pride ourselves in.
Speaker Change #247: If you're pulling the G&A down.
Speaker Change #248: How should we be thinking about that should we expect a big step up in the second half or are you undershoot. Your nudge 90 million, particularly on the G&A and similar question on the exploration and project.
Speaker Change #249: So we pride ourselves in.
Mark Bristow: Being the most efficient operators of a mining company on this planet when it comes to GNA and we continue to look at that, making corporate, um... oversight as efficient as possible and and we will continue to do that. So that trend is a good trend. 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.
Speaker Change #250: Being the most efficient operators of a mining company on this planet when it comes to DNA and we continue to look at.
Mark Russo: Paul Gras, you know, we turned on the last of the auto-claves last week. So all the auto-claves are operating in Paul Gras. And we've got a couple of non-core 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, chilly, of course, and chilly is rapidly becoming an opportunity as we deal with those legacy issues, both in the form of pasque alarm and Zelda var.
Speaker Change #251: I'm, making a corporate.
Speaker Change #251: Besides as efficient as possible and.
Speaker Change #251: And we will continue to do that so that trend is is a good trend and and and and and it's interesting what when you see what we do with twice the size of the company.
Speaker Change #251: And and with less people, but super efficient systems, that's what we stand for so that trend is rock and and then Dan I've tightened up on the exploration of that this year.
Mark Russo: And then Peru, that's a big chunk of non-operating costs that'll come out of our cash flow or our cost flow. And so, you know, our view is that, you know, into next year, we are 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. And we caught all the margin in the commodity price, which is what, that's the first step in our future strategy, and that is to sweat these assets.
Mark Bristow: 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, we, we tightened up on on, are the budget and said you know the budget's available but you gotta pass some, Some filters to get more. And it just needed that discipline.
Dan: Just we had got to a stage way.
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 lumped a more and more targets into the resource triangle that needed to be properly.
Dan: <unk> tested and so we are we talking it up on Arden.
Dan: The budget and said you know the budgets available, but you've got a pause some.
Mark Bristow: And that's what we did. So again, you you picked up very smartly, a little tightening in in the way we allocating exploration 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.
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 allocating exploration dollars. We've got a lot of opportunities, we've got to get the geologist and and they value.
Mark Russo: And as soon as you get on top of that, you can manage the investment in those closure sites. So you can, you know, we are compliant with GIS, EM, we've got nothing that's, you know, dangerous in our portfolio. And so we can start managing our non-operating costs as we go forward.
Dan: It has to be a little bit more focused on puppy moving the portfolio up through towards feasibility study and that's the reason that we've just talked in depth.
Speaker Change #253: Thanks very much.
Dan: Yeah.
Dan: Alright.
Anita Soni: Anita, you got it. Yeah, it was a follow-up on the reserve gold price question. So 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 the value given the current, So, so this is, um...
Mark Russo: So that's where the company is today.
Speaker Change #254: You got it.
Speaker Change #255: A follow up on the reserve gold price question. So you.
Mark Russo: Great, thanks. And just one more if I could, and it's just coming back to the discussion on the buyback and the dividend, 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 modeling standpoint, let you run the balance sheet down towards the net cash position before factoring any kind of meaningful additional buybacks in the second half.
Speaker Change #256: I recognize that you don't want to erode your margins on the one side, but on the other side easy equation. I think you can you know inflation is obviously a persistent one of the reasons why we have a gold price sits at 2400 dollar gold. So I mean would you consider raising it to to make sure that you're capturing all of the value given the curve.
Speaker Change #256: Uh huh.
Speaker Change #258: So this is.
Anita Soni: 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 we keep discipline on the reserve price, and there is a time when you start eroding your ore bodies with the gold price, because of the cost issue. And that's when we moved to $1300. That was the reason.
Speaker Change #259: So this is a very interesting topic I'll.
Mark Russo: So we are going to be buying back on a considered fashion, building on what we did last quarter. And so we'll manage it, grab an hour, manage it. We have got, you know, we share the strategy with our board. Everyone's happy with what our plans are. It's the same time we mindful of a demand as we go into a capital in 10th phase and again we can manage all that within our balance sheet so we don't want to get to us and the one thing that we've always done is stuck to our own rules.
Speaker Change #260: I'll try and keep it short so first of all the gold prices up because the world in a mess.
Not because of inflation inflation as part of that mess. So.
Speaker Change #260: And so we worry about a long term that's why I keep disciplined on the reserve price.
And there is a time when you start eroding, you'll all bodies with the gold price.
Speaker Change #260: Because because of the cost issue and.
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 Ridge, you go in and you jack the gold price 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.
Simon: That's when we moved when we moved to $1300 that was the reason we found the right balance between Barrick and Randgold assets and to Simon's point, we looked at the full body shapes. So when you when you take a higher gold price into an old and we mine quality.
Mark Russo: We look at ways to be able to intervene when the and you know through Marcaria I've had to deal with a number of short positions in a stock and I don't think there are not too many people that would take a big short position in Barrick today.
Simon: Whole body. So when you take a take turquoise ridge you go into a new Jack that the gold price up you start mining waste you thought lat am very marginal or putting it in into the mode that means to keep the same production you've got a larger mill and so and thereby your inquiry.
Graham Shuttleworth: You want to add to that? Yeah I mean I'm just down just to reiterate 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 Marxism on a measured basis we'll continue to have very low debt to EBITDA ratios by any matrix. 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.
Mark Bristow: And so, and thereby you increase your costs and your value of your asset goes down. So all the mine management 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.
Unknown Executive: Very clear thanks a lot.
Simon: Your costs and your value of your assets goes down and so all of the mine management every has to deliver an AAV 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 and we have.
Simon Bottoms: And we have very few assets, that there is logic for a small increase in the gold price which effectively keeps your grade so it keeps your ore bodies intact because the last thing you want to do is start slicing a piece of your natural boundary of your ore body off, and the other side of it is... For instance, Tongan, you'll see we changed that gold price, that we look at Tongan 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.
Simon: Every few assay.
Simon: That that are higher there is a logic for a small increase in the gold price, which effectively keeps your grade. So it keeps your ore bodies intact. Because the last thing you want to do is start slicing a piece of your natural boundary of Youll all body off.
Speaker Change #261: And and and and the.
Bob Brackett: The next question comes from Bob Brackett with Bernstein Research.
Speaker Change #261: And then the other side of it is.
For instance.
Mark Russo: Please go ahead. 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 MDNA you talked about the approximately two billion dollars of capex around lumwana at 50 million tons of processing. Anything to say around recognition one of the things that you're that would worry you between now and the release the feasibility studies in terms of moving these projects forward.
Speaker Change #261: Tung gone, you'll see we changed that golf process that we look at ton God because it's it's at closing them on and then 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 module and still make money out of it.
Speaker Change #261: So each one of our operations, we assess and independently and Simon's absolutely rock, what we did do on the 1700 dollar gold price is.
Simon Bottoms: So each one of our operations we assess independently, and Simon's absolutely right. What we did do on the $1,700 gold price.., 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, on the ore body. So we use 1700. 1700 pretty well mined out. Our resource, and so that 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 #262: As 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 all our shareholders future potential by putting infrastructure.
Mark Russo: So I would say if you don't worry about capital projects they always go wrong so and many times if you worry about it and do nothing then they also go wrong so. But lumwana is in a good place and lumwana washes its face at the expansion at $3 pounds so it's 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.
Speaker Change #262: On the ore body. So we used 1700 1700 pretty well mind at.
Speaker Change #262: Our resource.
Speaker Change #262: And so that's that's the logic for a big gap, it's quite interesting not 2400.
Speaker Change #262: 1700, actually looks quite attractive, but the capital to take that.
Speaker Change #262: For it is you know is high 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 just to give you a feel of how we manage.
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 for how we manage our portfolio.
Mark Russo: And so and that's an expansion you know we've we've got the one circuit we effectively duplicating that circuit and so we don't see the big focus on lumwana is the fleet and the efficiency of mining and the cost of mining that's our focus and we've got a new fleet we'll be expanding that fleet. And everything that we we're monitoring at the moment we're comfortable with our some, and then on Riccadec, 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 Lemona in 11th of September to share sort of some color on Lemona as we did with Riccadec.
Speaker Change #262: Our portfolio.
Speaker Change #262: Vini wants to say something.
Vini: And I was just going to add that you know effectively.
Graham Shuttleworth: I was just going to add that, you know, effectively, Anita, we do take cognizance 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 ore bodies, then we would adjust for it. So it's something we look at, we keep it under review, the teams are busy with that work, as you would expect now and we'll see whether it's necessary or not, but right now we're pretty close to where we need to be. Video.
Vini: We do take cognizance of that inflationary impact.
Vini: And obviously, if we see it as a sustained increase in costs in it 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 do we keep it under view. The teams are busy with that work as you would expect now and we'll see where the you know it's necessary or not but.
Mark: And right now we were pretty close to where we need to be.
Mark: Anything else.
Mark Russo: And that'll free us up to spend a little bit more time on Riccadec at the end of the day in November. But on Riccadec too, there's been swings and roundabouts. We've made very good progress with our water strategy, infrastructural strategy, Graham's progressing the financing options. 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 #264: Oh My gosh.
Operator: There are currently no more questions. Operator, are you good to your side? 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.
Mark: Yeah.
Speaker Change #265: Okay, operator, you good deal side.
Speaker Change #266: Yes, there are no more questions.
Speaker Change #267: Very much. Thank you operator for managing this and thank you everyone for coming.
Speaker Change #268: Some snacks next door for those who want to hang around and I would just say yeah. There was some detailed questions coming out we sort of did a bit of a modeling session. Here you are always welcome to reach out to our team whoever you feel comfortable reaching out to we always day to share the detail with you and get you on.
Mark Bristow: 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. [music]
Rod Trek: Rod Trek. So please feel free to reach out after those thank you again for making the time.
Mark Russo: Yeah, 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 showcased at the end of the year when we complete the feasibility study.
Speaker Change #270: This concludes today's event should you have additional questions. Please contact Barrick Investor Relations Department you May now disconnect. Your lines. Thank you for participating and have a pleasant day.
Speaker Change #270: Yeah.
Speaker Change #270: [music].
Mark Russo: Could we end up doing a good update in September? You'll get some color on it. Sorry, that's in the live. One will be September and then obviously with the investor day in November, there'll be some more color there and the final feasibility will come out in the beginning of the year. We have a mark there. Ask follow up on formal. What kind of drill density are you looking for to get to be indicated in the inferred categories by your end?
Speaker Change #270: Hum.
Mark Russo: No, no, we're not going to be there by your end. So, 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? I think we know where we've got to get to, but that's still some time off. Yeah, we know what we're targeting. So, for indicated, we're 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.
Speaker Change #270: Yes.
Speaker Change #270:
Speaker Change #270: Yeah.
Speaker Change #270: Yeah.
Speaker Change #270: [music].
Mark Russo: You can access them 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 with as well as narrowing down as Mark was alluding to earlier. Some of the different options that we will focus on within the piece of the study.
Speaker Change #270: Okay.
Unknown Executive: Anybody else on the telephone?
Speaker Change #270: [music].
Mike Parkin: The next question comes from Mike Parkin with National Bank. Please go ahead. All right, guys.
Mark Russo: Thanks for taking my question and congrats on the good quarter. The question on the TABO, the relocation work, 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 people's earth or 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 have a new earthworks and have communities moving through or around the footprint.
Mark Russo: 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 sensors and everything else that goes into integrated community.
Mark Russo: The geotech, the next step in this process is the completion of the feasibility of the dam itself and that's due this quarter. 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, early 2028. So we're still well within our plans and right now there's no emerging critical path. I think everything is in this phase of a capital project, everything's assumed critical.
Mark Russo: So are you having any issues with suddenly new regional residents and 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 has had a pretty good sense of like do some sort of paperwork to denote who you have to deal with versus some of the people trying to be strategically advantageous of the situation. Mark, we always have that.
Mark Russo: 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. It's pretty hard to allow the to deny a picture. I think, but it's part of the whole social engagement is dealing with people who exploit the situation, who take the opportunity to sort of claim things and we work with that all the time. This is a community we're going to live with for a very long time.
Mark Russo: So we manage that. So the positive side of, of where we are today. As you know, we went through a very extensive process to select the thought with government, with civil society, with the Catholic Church, you know, the whole Khatuchi. And under the lease agreement that we operate, the government has a responsibility to participate in the relocation and payment thereof. So it's a joint process. But right now, you know, it's 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, time as you point out, other people who are wanting to participate in the benefits.
Unknown Executive: All right. Thanks very much, Mark.
Tanya Jakusconek: The next question comes from Tanya Jakusconek.
Unknown Executive: Let's go to the bank. Please go ahead. Oh, good. Thank you for taking my questions.
Tanya Jakusconek: Good afternoon, everyone. I just wanted to come back to just how the rest of the year, you know, evolves. And I just wanted to make sure I understood correctly. So just on the Nevada goal of mine, which is going to be driven by Carlin, you know, the better grade than turquoise ridge as well, with better grades. Am I to assume that the volume is going to come by you processing those higher grade stockpiles at turquoise ridges you've worked on the case fell in the underground.
Tanya Jakusconek: And then 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? Broadly, yes. 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. I mean, talk about Carlin and turquoise ridge in particular. Okay. And have you seen the pickup because it's a month and a half now into the quarter and two, three. Have you seen the pickup in the grade? Sure. Okay. Thank you for that.
Mark Russo: And just similarly at Quebleau Viejo, I just want to make sure I understand we, and thank you so much for that slide with the 78% recovery. I'm just looking at it right now into, sorry, 79 into Q3 and then 80 into Q4. Have 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.
Mark Russo: Are you seeing that recovery? 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. 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.
Mark Russo: 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 auto claves appropriately and in the whole flow sheet. The logic of PV is to increase the sulfur content of the feed into the auto claves, which is really drives the fuel content.
Mark Russo: 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 or into some of the auto claves. We can reconfigure them to take run of mine or, 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 field.
Mark Russo: So it's really technical betting 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 on a consistent basis and then we'll meet our objectives. And without a doubt, my whole career have been through these processes, they frustrating and stressful, but at the end of the day, we get to where we want to get to. Yeah.
Graham Shuttleworth: And just on something that Anita has mentioned, the 92% recovery. And I know that, you know, you're corrected up on the 86%. But I was under the assumption as well that we were getting to 92. So just wondering if it's just our recollection from the mine tour or something has changed. Just some clarity on that would be great. Thank you. Hey, Tony, it's Graham. You are corrected in the feasibility 40103. 43101.
Graham Shuttleworth: We do go up to the 90s. It's a graduated process. So 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. Is that correct? Definitely not this year, as we pointed out. Do we get there next year? No, the following year. Following year. Okay, thank you on that as well.
Mark Russo: And if I could ask about Mark, I always ask about reserve replacement. I always like to know what, you know, how we look going forward. So as you, you know, your eight months into the year, how does reserve replacement look for you this year? Both from a, you know, from a mind-site perspective versus resource. And then the, you know, the critical question of, you know, you know, with this goal crisis 2400 plus, is there the thought of having to change your reserve and resource pricing?
Mark Russo: So, um, I'll answer the easy part of that question and then pass on to Simon Bottoms to do the detail. The, the, 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 Rikadek and, and the lamina superfeit. Having said that, the, you know, Kabali Lulug on Kata also in good shape to replace.
Mark Russo: PV 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, um, and, and the big focus right now in Papua New Guinea is really getting the mind up and running. We've got a 10 year laugh of mine is work to do to be able to add additional reserves to that laugh of mine.
Mark Russo: And so those, just on a broad level, that's sort of the way we look at it. Simon, do you want to pick up on that? Yeah, sure. So, as I said, um, so for the year, Africa, Middle East is looking positive to replace it. It's overall regional depletion. Um, again, it's as we've already pointed out in some of the releases is really driven by those core, the one assets, the local party.
Mark Russo: Um, but we're still seeing strong indications that we will be able to continue that patent in Tanzania as well. The Latin America region, the assets aren't all forecast, they've fully replaced their depletion this year, but with the addition of Rico, Dick has Marx already said that 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 within NGM, particularly with updates to the open fit studies in particularly in Hamlet.
Mark Russo: Then for reserve pricing, we are, we are seeing some cost pressures, we're looking at the pricing at the moment, we're doing the studies and we will be, we'll be looking to, to announce later in the year where we stand with that. Our intention, as has always been, is to maintain the quality of our mind plans, and because a lot of our mind plans are more geologically constrained, whereby we actually, we even with the current reserve price, we, we even mind the majority of the high quality, high grade material.
Mark Russo: So when you lift that reserve price, you inherently just add marginal material, and so therefore we evaluate it on a asset by asset basis, 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 required. And 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, and I'd expect we'll be looking at our long term resource pricing. Yeah. Okay, are they really appreciate me?
Anita Soni: Thank you very much for taking my question. Bonjour. Anita.
Daniel Major: The last question comes from Daniel Major with UBS. Please go ahead. Hi, thanks for the follow, just a couple of quick ones, more modeling dynamics. It looks like GNA perhaps explorations running a little bit below your guidance, obviously a good result if you're pulling the GNA down. How should we be thinking about that? Should we expect a big step up in the second half or are you under shooting 180 million particularly on the GNA and similar question on the exploration and project?
Daniel Major: So we pride ourselves in being the most efficient operators of mining company on this planet when it comes to GNA and we continue to look at making our corporate oversight as efficient as possible and and and we will continue to do that. So that trend is is a good trend and and and it's interesting when you see what we do with twice the size of the company and and with less people but super efficient systems that's what we stand for.
Daniel Major: So that trend is right and and then I've tightened up on the exploration a bit this year just we had got to a stage where you know my resource triangle and we were getting sloppy with the resource triangle we needed 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 we we tightened up on on the budget and said you know the budget's available but you've got to pass some some filters to get more and it just needed that discipline and that's what we did. So again you you picked up very smartly a little tightening in the in the way we are allocating exploration dollars.
Daniel Major: 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. Anita you got yeah it was a follow up on the reserve gold price question so you 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 to make sure that you're capturing all the value given the current cost.
Daniel Major: So so this is um so this is a very interesting topic um 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 so and so we worry about uh long-term that's why I keep disciplined on our the reserve price and there is a time when uh you start eroding your all bodies with the gold price because of the cost issue. And that's when we moved to $1300, that was the reason.
Daniel Major: We found the right balance between Barrick and Randgold assets, and to Simon's points, we looked at the all-body shapes. So when you take a higher goal press into an all- and we mind quality all-body, so when you take turquoise reds, you go in and you jack the goal press 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.
Daniel Major: And thereby you increase your costs and your value of your assets goes down. So all the mine management 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 that are higher, there is logic for a small increase in the goal press which effectively keeps your grade, so it keeps your all-body's intact because the last thing you want to do is start slicing a piece of your natural boundary of your all-body off.
Daniel Major: And the other side of it is, for instance, tongue-on, you'll see we change that goal press that we look at tongue-on because it's a closing mine and we don't want to leave value behind, and the all-bodies are such that we've started building capacity in the processing facility so it can take that marginal or and still make money out of it. So each one of our operations we assess independently, and Simon's absolutely right.
Daniel Major: What we did do on the $7,900 goal press is we looked at again at the all-bodies, particularly the low-grade pits in that, and we said we don't want to compromise our shareholders' future potential by putting infrastructure on the all-body's. So we used $1,700. $1,700 pretty well-manned out our resource. And so that's the logic for a big gap. It's quite interesting now at $2,400 to the $1,700 actually looks quite attractive. But the capital to take that forward is, you know, is high.
Daniel Major: 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. Do you need anyone to say something? I was just going to add that, you know, effectively, Anita, we do take cognizant of that inflationary impact, and obviously if we see it as sustained increase in costs, and as Mark says, it's going to erode the core value of those all-bodies, and then we would adjust for it. So it's something we look at, we keep it under review, the teams of the zero with that work, as you would expect now, and we'll see whether, you know, it's necessary or not.
Unknown Executive: But, yeah, right now, we're pretty close to where we need to-[inaudible] This concludes today's event. Should you have additional questions? Please contact the Barric Investor Relations Department. You may now disconnect your lines.
Unknown Executive: Thank you for participating and have a pleasant day