Q4 2024 Barrick Gold Corp Earnings Call
Ladies and gentlemen, thank you for standing by this is the event operator welcome chip Bergh results presentation for the fourth quarter of 2024.
During todays presentation, a question and answer session will be conducted if you have a question and are joining via that by telephone. Please press Star then one on your telephone keypad.
You will hear a tone acknowledging your request.
You will also be taking questions.
As a reminder, this event is being recorded and a replay will be available on barrick's website. Later today February 12 2025.
I would now like to turn you over to Marc with both President and CEO. Eric. Please go ahead Sir.
Thank you very much and.
Speaker Change: Very good morning, and good afternoon to everyone here today and for that is that all Nicole.
Thank you for joining us today.
Speaker Change: As you know that Barrick, we are focused on delivering.
Speaker Change: Sustainable long term.
Speaker Change: Value by owning the best gold and copper assets managed by the best people.
Speaker Change: Every quarter, we're getting closer to achieving our goal.
Speaker Change: With gold, becoming more important as a safe haven, and the Geo politically uncertain world and copper being as strategic as cold as precious.
Speaker Change: I plan to show you, how we are adding value and building capacity in both metals without taking an extensive amount of data on all issuing new shares.
Needless to say.
Speaker Change: It's an exciting time to be a golden copper miner.
Speaker Change: With more upside in the cup coffee commodity bras.
Speaker Change: But in my opinion anyway.
Speaker Change: It's been a transformative year for Barrick.
Speaker Change: One way we have invested heavily.
Speaker Change: Now people that know I assets.
Speaker Change: And we feel that we've reached a pivotal point.
That will add impetus to our strong growth trajectory.
Speaker Change: Oh, yeah unwavering commitment to sustainability.
And I believe in our vision not only need to be the best gold and copper producer in the world.
Speaker Change: But also one that people want yard.
Speaker Change: This is a customary.
Speaker Change: Fortunately notice regarding forward looking statements.
Speaker Change: But you can read at your leisure.
Speaker Change: Our website.
Speaker Change: So moving to a group highlights.
Speaker Change: It's great to see all the arrows once again pointing in the right direction.
Speaker Change: We saw EBIDTA increased 30% and EBITA margins grow both quarter on quarter and for the year.
Speaker Change: Also as I used to have strong performance in the last quarter as we pointed out and discussed.
Speaker Change: When we last met.
Speaker Change: We met our 2020 full guidance.
Speaker Change: Adjusted net earnings per share grew 50% year on year to $1 26.
Speaker Change: The quarterly dividend was maintained at 10 cents per share.
Speaker Change: And we repurchased an additional $354 million of our own shares in quarter four taking the total for the.
Speaker Change: Almost 500 million.
Speaker Change: We also continued our exceptional track record and reserve replacement for both gold and copper.
Speaker Change: Substantial new reserves from the water and Richard <expletive>.
Speaker Change: That's 12 in addition to the replacement 12.7 million ounces of gold and 13 million tonnes of copper gold reserves from those two projects, which just to put it in perspective is on a gold equivalent basis equaled to 73 million ounces of gold.
Speaker Change: <unk>.
Speaker Change: Yeah.
Speaker Change: Quarter on quarter gold production from our mines increased 15%.
Speaker Change: And the three pits and with a 3% reduction in cost of sales and 5% decrease in total cash costs.
Speaker Change: Driven by our focus on cost efficiencies.
Speaker Change: Nevada played a key role in this performance with a significant throughput and production boost as it delivered on gods.
Speaker Change: On the copper side Lamar not posted a quarterly production record.
Speaker Change: And on a group attributable basis, we achieved production godless guidance for both copper and gold.
Speaker Change: Turning to the financial results.
Speaker Change: Some of which I've already touched on we achieved the highest net earnings in a decade.
Speaker Change: Alright, and cash flow for the quarter was up 18% to $1 $4 billion, taking the total for the year to full point 5 billion. The highest we've achieved since 2020.
This strong performance led to 104% increase.
Speaker Change: Full year free cash flow to $1.3 billion for 'twenty 'twenty four.
Speaker Change: Strong cash flow supported 500 million of share buybacks on top of $700 million in dividends, which kept net debt and land at just over $650 million.
Speaker Change: Safety and our journey to zero remain a top priority.
Speaker Change: Unfortunately, as we have already reported we had three fatalities in 'twenty 'twenty, four which is unacceptable.
Speaker Change: We ended the quarter with significant improvement on the lagging indicators when compared to the same period last year or the previous yet what was particularly encouraging was the increase in critical control verifications conducted at the sites.
Speaker Change: As well as a number of actions closed out of the high potential incidents.
Speaker Change: Both of which represented a focus on leading indicators too.
Speaker Change: This improved performance meant that we achieved our improvement goals for the group.
Speaker Change: Additionally, there was no class one environmental incidents and we again achieved an industry, leading water use efficiency rate of 85%.
Speaker Change: We continue to integrate our holistic mine closure strategy.
Speaker Change: The group and drive long term value creation, most notably we exceeded our group concurrent rehabilitation target for the second consecutive year.
Speaker Change: Put seven about Oleds are tailing storage facilities and to save closure.
Speaker Change: We are targeting a further five this year.
Speaker Change: As usual, we'll start our operational review with North America, which to remind you accounts for 47% of our total attributable gold production.
Speaker Change: And as Barrick's value Foundation.
Speaker Change: The new leadership team has settled in well.
Speaker Change: Focusing on the key metrics, we identified for improvement in Nevada, including efficiencies agility profitability and growth.
Speaker Change: For this we've identified several growth opportunities, including both brownfields and the new full mile project, which will discuss further later.
Speaker Change: Moving to the summary of the results the numbers speak for themselves.
Speaker Change: As we anticipated we saw an improvement in production and costs driven by a strong quarter for performance across the complex and particularly from a three tier one assets.
Speaker Change: This along with the higher gold prices.
Speaker Change: The solid set of financial results for both the quarter and the.
Speaker Change: And as mentioned.
Speaker Change: The mall is one of the most.
Speaker Change: Saatchi, new Gold's opportunities. The team has done excellent work to move that project to pre feasibility study.
Speaker Change: We allocate we are allocating $78 million for the 2025 year to begin the.
Speaker Change: Pre feasibility study work, which we'll expect which we expect will take.
Speaker Change: About three years to complete.
Speaker Change: In terms of mineral resources. It has been a significant improvement in the 'twenty 'twenty four economic assessment as we highlighted at our November capital markets day.
Speaker Change: This project is essentially an extension of gold rush.
Speaker Change: With much larger ore bodies.
Speaker Change: Nearly double the bright.
Speaker Change: Making it a highly promising opportunity.
Speaker Change: And we will continue to share updates on this project as we move forward with the pre feasibility study throughout the year.
Speaker Change: In addition to four mile we are continuing to expand our significant brownfield portfolio in Nevada.
Speaker Change: At calling the great leavell aerial hold substantial potential for further discovery and depletion replacement.
Speaker Change: At Cortez, we have the hadn't sudden extension within the Cortez Hills underground mine.
Speaker Change: Which remains open in all directions.
Speaker Change: We're also advancing Greenfields work with drilling at Swift and then the call in basin near the gold quarry deposit cut.
Speaker Change: Serving large called an alteration systems undercover.
Speaker Change: And then turquoise ridge, we're upgrading the model and have recently defined several new near mine targets to be tested in the coming months.
Speaker Change: Looking at North America as a whole we're continuing our work in Canada fucking on focusing on southern superior with drilling progressing at both the Norris and Petrus projects, we're also expanding off footprint and proud.
Speaker Change: Two belts across western United States for both gold and copper assets, which includes the ongoing consolidation of an exciting portfolio in western Nevada.
Speaker Change: Moving now to Latin America, and Asia Pacific Region.
Which accounts for 17% of our gold production and 21% of our copper production and both two key growth stories.
Speaker Change: The popular via her expansion is making good progress.
Speaker Change: And the bankable feasibility study at rig count, which is now complete and received conditional approval from the board to proceed yesterday.
Speaker Change: It's also worth highlighting the performance at <unk>, which delivered its best production results in the last five years.
Speaker Change: Gold production at Pueblo Viejo remained relatively stable with an improvement throughout the year and recovery rates, reaching 80% by year end as forecast.
Speaker Change: Pablo Vera is making good progress towards its goal of becoming a low cost long life.
Speaker Change: Plus 800000 ounce gold producer.
Speaker Change: Ongoing work includes 35 days of planned downtime this quarter for.
Speaker Change: For throughput improvement projects with additional shutdowns expected in quarter four to further improve recoveries.
Speaker Change: We're also advancing the L. A in the range of tailings storage facility and important infrastructure project to support the mines life extension.
Speaker Change: Looking ahead.
Speaker Change: And as you try and yeah, we are focusing our step up improvement in throughput and recovery on the back of those glass plant improvements and upgrades are referred to in the previous slide.
Speaker Change: We expect to be in the mid 600000 ounces for this year with a target of exceeding 800000 ounces next year.
Speaker Change: And on this slide you can see some updates as we move forward without ongoing resettlement, although affected households for the development of the state just tailing storage facility.
Speaker Change: That's what a settlement, which aligns to the international best practices and standards will ensure that that is affected by the project has the same if not better living conditions, and we believe it will be better with clean running water and electricity supply to each house at the host sought.
This all along with a lot livelihood restoration plan and access to education facilities allow the families being resettled to build a better future together.
Speaker Change: The first families will be relocated in the next few weeks.
Speaker Change: On the exploration front.
Speaker Change: We've refocused our entire portfolio across Latam and Asia Pacific.
Speaker Change: Targeting a series of new tier one level opportunities in the region.
Speaker Change: The most advanced projects saw in Peru.
Speaker Change: Labor Layla, we where we are drilling multiple targets and Colorado para, which as I pull free project that is currently progressing through permitting.
Speaker Change: Additionally, we are actively evaluating our first set of early stage properties in Ecuador within wood.
Speaker Change: Six prospects currently under review all of which are promising.
Speaker Change: Railcar <expletive> I must say.
Speaker Change: Just gets more exciting day by day with.
Speaker Change: With the feasibility study now completed our focus has shifted to the early works.
Speaker Change: <unk> startup and wrapping up the funding.
Speaker Change: The project is structured in two phases.
Speaker Change: With a total estimated budget for the phase one of the approximately $5.6 billion to $6 billion as shown in the graph on the bottom right.
Speaker Change: This mine is to become one of the lowest cost copper producers in the world sitting well below $1 per pound after gold credits.
Speaker Change: Free cash flow is estimated at around $74 billion over 36 years, excluding taxes payable to the government of Pakistan and Baluchi start.
Speaker Change: And further details are outlined in the table on the left of this slot and we expect to publish the full 43 101 report next.
Speaker Change: Next week I think solving.
Speaker Change: Our limited recourse project finance discussions with a potential lending group comprised of multilateral export credit and import finance agencies are well advanced and we are targeting to saw and this early in the third quarter.
Speaker Change: Subject to the financing.
Speaker Change: And yesterday, our board has as a conditionally approved to go ahead of the project with first production production targeted by the end of 'twenty 'twenty eight.
Speaker Change: Just as a reminder.
Speaker Change: It's worth pointing out that the bankable feasibility study focuses only on full pull free deposits.
Speaker Change: Three of which are part of what we call the western pull freeze along with the 10 Gilles deposit as shown on this slide.
Speaker Change: It's important to note that the current bankable feasibility study is based solely on reserves associated with these full poll freeze.
Speaker Change: But there is significant potential beyond that in total they all 14 identified palfrey bodies within the mining and exploration license one Barack addict bonding company.
Speaker Change: Our geologists as we speak are currently actively evaluating these other bodies, which will certainly influence future life of mine plans and reserve and resource estimates.
Speaker Change: There is a substantial upside and while the feasibility study assumes 36 year mine life based on reserves all indications suggest the Leiden could still be operating through the rest of this century.
Speaker Change: Moving to Africa.
Speaker Change: And the middle East.
Speaker Change: These regions contributed 38% of our attributable gold production and 17, 9% of our copper in 'twenty three 'twenty four.
Speaker Change: Like Rico <expletive>.
Speaker Change: Super pit to expansion at Nevada is close to being fully permitted in the feasibility study is now complete.
Speaker Change: We've appointed our engineering partners and finalize the environmental and social impact studies for which we now have received the permit.
Speaker Change: We are also on track with early works design and long long lead at them fabrication.
Speaker Change: This highlights the big advantage of emerging markets.
Speaker Change: With large expansions and new projects can be completed much more quickly than in the developed world, but that's exactly the same standard.
Speaker Change: In addition to the work at Lamar and last week, we saw and then they're out in terms of understanding with the Zambian government.
Speaker Change: That'd be in governments industrial resources limited, forming a strategic partnership to drive mining and exploration in Zambia.
Speaker Change: This collaboration aligns with Zambia's vision to increase annual copper production.
Speaker Change: 13 million tons in the coming decades.
Speaker Change: Starting with Lou log on Qatar.
In spite of the challenges we are currently experiencing in moly production.
Production increased by 18% in the fourth quarter by 8% in the fourth quarter and exceeded guidance for the.
Speaker Change: Gold sales were down significantly due to the restrictions placed on exports by the body and government.
Speaker Change: As you know in addition to export restrictions, we face the unjust and cost duration of some of our team members, which is a difficult situation to delegate.
Speaker Change: We are actively engaged with the administration.
Speaker Change: Secure their release.
Speaker Change: And on a sustainable solution moving forward, so that we can restart the mine.
Speaker Change: This situation has led us to file for exit arbitration to assert our rights, but at the same time as usual we remain engaged and are hoping to continue to make progress, albeit slowly.
Speaker Change: Our goal remains to reach a lasting solution that brings benefits to Bali, while ensuring fairness and supporting the long term viability of this world class operation.
Speaker Change: This being crucial to the country's economy as well as all other stakeholders.
Speaker Change: I thought it would be worth putting a few points into perspective.
Speaker Change: At times, there's been a lot of misinformation about the benefits that Rollie has received from the development of these assets.
Speaker Change: Since 2005, we have contributed more than 3.2 billion U S dollars to Somalia, and treasury in the form of dividends royalties and Texas.
Speaker Change: More recently in the past two years alone.
Speaker Change: We contributed $400 million in 'twenty two 'twenty three.
Speaker Change: In cash.
Speaker Change: The moly in Treasury and $460 million in 'twenty 'twenty fall to that same treasury.
Speaker Change: The demand not being forced into temporary suspension.
Speaker Change: We're on track to contribute more than $550 million in 2025 at current gold prices.
Speaker Change: Beyond the financial contributions I'll focus has always been on long term growth to sustain those benefits for Molly and its people.
Speaker Change: Since 2005, we have produced nearly 10.5 million ounces of gold.
Speaker Change: And they have added more than 15 million ounces to reserves.
Speaker Change: Seeding the lines loss.
Speaker Change: To extending the lives lost to 2041.
Speaker Change: But more importantly, we have Bolton developed local talent today Marlins operating across our global business.
Speaker Change: <unk> in Nevada, and the expertise is a key reason why these assets continue to succeed.
Speaker Change: The talent take stands beyond doubt workforce, we have helped develop valliant businesses that have pioneered drugs in the mining sector.
Speaker Change: Some of which have expanded beyond Molly as a country.
Speaker Change: From a specialized mining contractors to fuel and consumable suppliers.
Speaker Change: Economic multiplier effect of mining is a men's creating opportunities to go far beyond the mine itself.
Speaker Change: They're all crossing over to the DRC Kibali the biggest gold mine in Africa.
Speaker Change: And one of the most automated in the world had a much improved quarter as we work to address some operational challenges that plagued demand for most of the <unk> trade default calendar year.
Speaker Change: While it took longer than expected those issues are now behind us.
Speaker Change: He is a great mine low cost with a long life and significant opportunities within its mining lease.
Speaker Change: Production increased quarter on quarter in sustaining costs were well controlled.
Speaker Change: We're confident that Kibali all show significant improvement across the board during 2025.
Speaker Change: The new solar plants and battery storage system, a plan for commissioning at the end of quarter. Two of this year and this will see an increase in the availability of renewable energy from 81% to 85%.
Speaker Change: And six months of the AR will.
Speaker Change: Generate electricity with zero carbon emissions.
Speaker Change: In Tanzania, North Laura was a standout performer.
Speaker Change: Across all metrics, serving as a great example of what can be achieved when the right management team is in place and operating to our standards.
Speaker Change: Production was up 20% quarter on quarter on the back of higher grades and higher throughput.
Speaker Change: At Bouillon, Hulu, we've seen significant improvements.
Speaker Change: We continue to increase the scale of the operation.
Speaker Change: North borrowers life of mine has been sustained beyond 10 years, and Bali and who lose life is well over 20 years.
Speaker Change: Real dov into exploration details.
Speaker Change: A little later.
Speaker Change: In Zambia.
Speaker Change: Ala Moana copper mine delivered a stellar performance.
Speaker Change: Our record quarterly production brought demand back into guidance and delivered a significant improvement in costs, ensuring a successful end to 'twenty 'twenty four.
Speaker Change: Many of the feasibility study assumptions for the Super pit expansion.
Speaker Change: Have not been proven in the operation the details of which are summarized on the next slide.
Speaker Change: The image on the left shows the Super pit alongside a summary of the feasibility study results on the rot.
Speaker Change: This is a standout project.
Speaker Change: It is important to put it into perspective.
Speaker Change: When Barrick acquired the mine in 'twenty 11.
Speaker Change: It was unprofitable and resulted in a $5 billion write down.
Speaker Change: In the past five years or so.
Speaker Change: Cause on cost discipline and exploration has added significantly to reserves extending the life of mine by more than 20 years.
Today, the line is sustainably profitable and a pillar of our copper growth strategy.
With the Super pit expansion feasibility study completed we are now moving forward with the project development following approval from the board as I explained earlier.
Speaker Change: The feasibility study clearly supports the value of this investment.
Speaker Change: Importantly, we can fund the Super pit expansion as well as a share of Rick addicts development through our current and forecast cash for facilities.
Speaker Change: Without needing to issue any new shares or take on additional debt in fact as I pointed out in the introduction, we are reducing our outstanding share count by buying back our own shares.
Speaker Change: I've already touched on the exploration opportunities in North and South America.
Speaker Change: And we continue to make significant progress.
Speaker Change: Africa, and the middle East regions as well.
Speaker Change: The region remains a consistent leader not only in meeting its gardens, but also in replacing the reserves, we mined both in gold and copper.
Speaker Change: We are actively investing in our future.
Speaker Change: Focusing on material brownfields opportunities and the ORC target area.
Speaker Change: Our west of the K C D M deposit in Kibali, while also pursuing new tier one assets.
Speaker Change: Our greenfield footprint, so I, expanding especially in Tanzania, San Diego and new frontiers in the Arabian Nubian Shield.
Speaker Change: The recently signed Mou with Zambia also underscores our focus on expanding in the Central African copper belt.
Speaker Change: As I've always said what truly sets barrick apart from the rest of the industry is our ability to replace what we mine.
Since 2019, we have replaced more than 180%.
Speaker Change: The company's gold reserves depleted.
Speaker Change: Notably in 'twenty 'twenty four we replaced a 4.6 million ounces of annual depletion at better grades.
Speaker Change: Before the addition of the rig color <expletive>.
Speaker Change: Zev base.
Speaker Change: This replacement was driven by the usual strong performance in Africa, and Middle East with additional significant growth.
Speaker Change: In Pueblo Viejo, as the result of pit pushback unlocked by the additional T. S F capacity.
Speaker Change: And then you know radio tailings facility.
Speaker Change: The conversion of copper gold resources, and Rick IDEXX as nearly 13 million ounces of gold reserves at 0.28 grams, a ton on a 50% attributable basis.
Speaker Change: Positioning barrick to capitalize.
Speaker Change: On the copper fundamentals.
Speaker Change: We look to recur <expletive> feasibility study, which added $7 3 million tonnes of copper at.
Speaker Change: 0.48%.
Speaker Change: Attributable copper reserves.
Speaker Change: The Lamont Super pit expansion feasibility study added 5.5 more million tonnes of copper reserves, resulting in a total project copper reserve of 8.3 million tonnes at 0.52%.
Speaker Change: This represents an addition of more than 20 million tonnes of copper reserves on a 100% basis since 2023 and these reserves were calculated at $3 a pound.
Speaker Change: These results from their respective feasibility studies paved the way to position Barrick on the global stage of major copper producers alongside our existing will clock class gold portfolio.
Speaker Change: Our consistent focus on asset quality, which through our integrated mineral resource management and exploration strategy.
Speaker Change: It allows us to replace what we mine.
Speaker Change: Since the merger in 2019.
Speaker Change: We've added 111 million gold equivalent ounces two.
Speaker Change: To Barrick's reserve base.
Speaker Change: All at a cost of just $10 per equivalent ounce.
Speaker Change: Not only replacing what we have learned.
Speaker Change: But delivering.
Speaker Change: Substantial value.
Speaker Change: As highlighted in this slide when you compare this to the cost of recent M&A transactions in the industry.
Speaker Change: The value we have created through doing this.
Speaker Change: It is abundantly clear.
Speaker Change: And ladies and gentlemen.
Speaker Change: It's on the back of this organic growth that we can forecast.
Speaker Change: A plus 30% growth in gold equivalent ounces out to the end of the decade.
Speaker Change: As already highlighted we are moving ahead with two key growth projects, which will see capital increase over the next three years before coming back to more normal levels.
Speaker Change: And then as production increases so too we expect costs to reduce as shown in this slide.
Speaker Change: And as I shared with you last year at our Investor Day in November the value opportunity at Barrick only continues to increase.
Speaker Change: The slide.
Speaker Change: Shows consensus net asset values with market multiples applaud, including a modest one times multiple a full copper assets.
Speaker Change: You can see that the value for Nevada, and the copper business together exceeds barrick's market capitalization.
Speaker Change: That means there's an implied negative value.
Speaker Change: For the rest of barrick's tier one tier two and other strategic assets.
Speaker Change: I can also tell you that these consensus values are significantly lower than our own internal valuations.
Speaker Change: Something we expect to shift when.
Speaker Change: When we published the technical studies for a little more on and Richard <expletive> later this month.
Speaker Change: No matter, how you analyze the portfolio the current share price does not come close to reflecting the fair value of our asset base and our prospects.
Speaker Change: You'll also see our view reflected in our buyback activity this quarter, which you can expect to continue.
Speaker Change: So to recap.
Speaker Change: Where barrick is headed today.
Speaker Change: I outlined earlier that we are targeting 30% growth on a gold equivalent ounce basis towards the end of the decade.
Speaker Change: Bolt on to our current reserves.
Speaker Change: As I've shown you today we.
Speaker Change: We will continue to replace and add to those reserves and resources for further supporting our growth.
Speaker Change: What's more we have the balance sheet strength to fund our growth and continue to invest in our own future without relying on the market.
Speaker Change: By any measure.
Eric: Eric today presents a stand out value opportunity.
Eric: And with that ladies and gentlemen, thank.
Eric: Thank you for listening and we I'll be happy to take questions.
Mark: Hi, good morning, Mark.
Mark: Huh, Yeah, you're right up the block yeah right out of the block first question.
Mark: The reduction in Capex. So you trimmed capex I think at the November Investor day, It was around $4 billion or 3.9 or so.
Mark: It was about 1.5 and the copper signed 2.4 on the gold side.
Mark: And now it's three one to 3.6 some of that flu I assume because it's not there's no capital for Lulu.
Mark: And what's the other but where does he have to trim come from.
Graeme: Hi, Anita its Graeme.
Speaker Change: The vast majority of it relates to Lula, because obviously, we've excluded the production from our guidance and we've executed that.
Speaker Change: Capital as well.
Speaker Change: There are some other small changes in Nevada, but really it's all about.
Speaker Change: Secondly, and what are the standby constant Lulu and where is that running through in the financials.
Speaker Change: So right now we've taken out.
Speaker Change: All the gold in the circuit that weekend and so.
Speaker Change: We're in a very much a break even place today.
Speaker Change: We are engaged we we expected that we will continue to make progress in our conversations and then I'll just put this slide up. This is just an indication that if we start up our early in March that's the sort of hach.
Speaker Change: Ball is all attributable portion of production and so it's at that point and as we've disclosed in the MD&A right now we're not guiding for Lula, let's get it done and sorted we have we have reallocated a lot of our experienced ARPA.
Speaker Change: Alright, as do other operations to ensure that they are active in and contributing to the company and we've got quite a big stuff on.
Speaker Change: Care and maintenance, because there's a temporary care and maintenance process, it's not a full care and maintenance our.
Speaker Change: Plan yet.
Speaker Change: And we expect to be able to bring that line up in and back into production very quickly and and really in each of them for us.
Speaker Change: Brito, you've seen me I've been reluctant to get involved in that.
Speaker Change: Hi, Blake a negotiation with the body authorities, we all we'd prefer to keep that at the level of you know.
Speaker Change: <unk> invested to principal and and we'll keep you posted as we go Okay. And then so that would mean that the the next question was the 20 the outlook 2027 to three to 2029 seems that Lulu restarts range. That's correct. Okay. And then my final thing just to point here is when you look at Barrick.
Speaker Change: It's I mean, it would not be a good thing to lose lula not for anyone to say can particularly not for molly's, but equally for US we are long standing partners in Bali.
Every one of our operations are independently viable.
Speaker Change: And barrick's balance sheet is very solid and and so with or without Lula will not change.
Speaker Change: All our long term plan, our five year plan as you see here and it'll just be slightly smaller, but fundamentally we can easily support the the projects and the capital commitments during that period.
Speaker Change: That's a very important point to do under school.
Speaker Change: And then my final question is with respect to the P. D. Relocation efforts. There's been a couple of press releases that you guys have put out in the last two months I'm talking about issues with I guess some commission that is representing claims to be representing families and it's hampering. The process could you tell me how many families are yet to be relocated.
Speaker Change: And what.
Speaker Change: The timeline for construction for that Dan is again and when do you need that capacity. So it's 2029.
Speaker Change: I believe 2029.
Speaker Change: Completion.
Speaker Change:
Speaker Change: We all have right in the middle of.
Speaker Change: Consulting and in fact, I would say we finalized.
Speaker Change: The reimbursements and then there's a lot of.
Speaker Change: Negotiation around individual plants, particularly for those people who have thought could cause blogs etcetera and those are the the that it's quite important that.
The commission, we referred to are really represents themselves and there. It's a selfish a group of people trying to hold the rest of the communities to rent them and we are engaged with that as we do is as we follow the IFC relocation.
Speaker Change: Procedures, which are almost identical to the world Bank procedures, and and we are working with them in the government and and the communities themselves. What happened is that the commission tried too.
Speaker Change: Motivate people to block.
Speaker Change: Access to areas too that we need to do test work tastes drilling on on the foundation of the actual start of World War.
Speaker Change: So we are with the help of the government.
Speaker Change: Mobilize the security forces to let us give us access these are public road access as the end and once we work through.
Speaker Change: I mean, we were really welcomed by the communities and we were able to continue that.
Speaker Change: Test work and we back and doing the test with because they have been for a couple of weeks ago. So it is a process I mean these things all you know that you get people to exploit the opportunity. They are people that want to get a head and you know as you know we've done a lot of this and that and we're very mindful as families.
Speaker Change: And their lifestyles and you know there are it is older ships and and and so and what we found is once we start moving their people.
Speaker Change: Into the new items that I'll show, you then things get them into about the AR that were still in that stage of.
Speaker Change: Our what we call a valuation so we sit as each household we worked through the house. They all the assets. We are assessed that the the value of that and then agree on on the not only the the the house itself we've got different.
Speaker Change: Sides, how homes that we've already built and are continuing to build.
But also the other things that lock.
Speaker Change: Plants and.
Speaker Change: The infrastructure that are not necessarily duplicated and they need new hubs and that's what we are busy with at the month, So I E.
Speaker Change: Actually I Couldnt tell you exactly the same did yet it's still quite a way to go but we are in that process now.
Speaker Change: Oh, Brian Macarthur Raymond James Mark I, just want to go back to the formal you've talked about you know better grade better mining conditions, but there's also discussion about the processing facilities.
Speaker Change: I'm kind of curious whether you'd comic yet it talks about flexibility going to the roasters or the auto claims how much you see potentially going each way at the moment I get it there's a lot more work to be done second question I'm just kind of curious why there was a three year PFS that probably looks like a pretty detailed PFS than it may have something to do with.
Speaker Change: Discussion of the first and three if you could just comment again about how the vending with Newmont works. Thanks very much. So the the joint venture I think we've explained there's quite a few jobs.
Speaker Change: It provides for us to be able to.
Speaker Change: Put the infected it it doesn't give us the opportunity it gives us the obligation to put this project into the joint venture.
Speaker Change: On a pre determined.
Speaker Change: Valuation, but a full evaluation of market evaluation, not a bankable feasibility study evaluation.
Speaker Change: And and so no debt and a net basis, we all continuing towards that so its etcetera.
Speaker Change: Uhm lost last year, we did a preliminary valley.
Speaker Change: Evaluation trying to get a feel of the Sars enough to stop the slot up and what you can see is it's the continuation of the system that defines gold rush the differences you moving towards that big.
Speaker Change: Think intrusive so the Roc becomes most is to let's say five more brittle and so the mineralized fluids or breaking it and and one that's much more competent she had technically and to the ore bodies are bigger so.
Speaker Change: And they are higher grade because most of them are brachia style ore bodies.
Speaker Change: And there the the so far the if you just look at the different numbers.
Speaker Change: Six grams, and nearly 12 grams so.
Speaker Change: So if you take what we showed you this at the Investor Day, If you just take.
Speaker Change: The gold rush valuation model.
Speaker Change: And and use everything including the cost of mining and development in processing and you just put the grade and it's an exceptional value.
Speaker Change: And of course.
Speaker Change: The unit cost of money will come down because these are much higher than our biggest stuffs.
Speaker Change: So we understand the potential value.
If you take full mall and you stick it into Nevada today, you changed the full valuation of Nevada immediately.
Speaker Change: So you know there's every bit of motivation for us to get this.
Speaker Change: <unk> assets into the Nevada.
Speaker Change: This model.
Speaker Change: At the same time, there's a there's a requirement under the the joint ventured too.
Speaker Change: To complete a feasibility study so the decision. We've made is to continue the evaluation Oh. So we the next step is pre feasibility study level and with that will come.
Speaker Change: We've already done the preliminary work on Geo tech to get access from Bally and <unk>.
Speaker Change: Boolean Hill, which then brings in a new access.
Speaker Change: Do not only for awhile.
Speaker Change: And Hans the entire logistical cost of moving or even in gold rush.
Speaker Change: And and so that's the next step and then.
Speaker Change: And then for me it's.
Speaker Change: It's about how do we deal with our partners and our Nevada gold mines to ensure that.
Speaker Change: And that we get this thing.
Speaker Change: Recognized as on its value and also start benefiting that farm that because I've got no doubt that certainly the shareholders, we talk to our shareholders.
Speaker Change: Who many of which are also newborn shareholders.
Speaker Change: You can see the the opportunity here. So I know I think it's beholden or not says as manager is to find a solution that will unlock this value sooner rather than later for all our stakeholders and that's really where all of that stuff in that conversation.
Speaker Change: Lawson Winder from Bank of America Securities Mark Thanks for the presentation today and nice to see you.
Speaker Change: I'd like to come back to Molly if you wouldn't mind and.
Speaker Change: Note that AR in Q4, you guys paid out over $100 million and then $249 million in 2024 roughly.
Speaker Change: In order to continue to advance negotiations.
Speaker Change: Conceptually.
Speaker Change: Is that a payment that you would continue to have to make and then without revealing barrick's position on this I understand the sensitivity of negotiation, but.
Speaker Change: Can you give us a sense of what the Molly and government is hoping to achieve.
Speaker Change: So I'm not sure you got the numbers right.
Speaker Change: Besides that again as we paid out well there was an other expense number and it was so for the full year 2024, it was $249 million.
Speaker Change: And the note in the MD&A, you said that that was largely.
Speaker Change: No.
Speaker Change: That largely consisted of payments to the Malian government to advanced negotiations.
Speaker Change: I don't know what proportion of that was but I mean more than 50% I guess right.
Speaker Change: Liam.
Speaker Change: The payment that we made Simoleon government, which was made in the beginning of October at the dominant we were.
Speaker Change: I'm in a position where we thought we had agreed.
Speaker Change: White food was $84 million. So that's the amount that we paid and.
Speaker Change: That was really a one off payment because as I pointed out we were at a stage, where we believed we had an agreement will be subsequently that.
Speaker Change: It didn't transpire that way so that's the only payment we've made.
Speaker Change: Okay. So no.
Speaker Change: Let me just.
Speaker Change: If I can frame it a little bit so.
Speaker Change: Oh they are.
Speaker Change: Few of our employees who are advising.
Speaker Change: The government too.
Speaker Change: And in the online to go.
Speaker Change: I have conflicts of interest in many different aspects.
Speaker Change: But they are basically the fundamentals are they claiming that the mining industry yet.
Speaker Change: They are.
Not fulfills its obligations and and that had taken out more than what bally has it taken out and as I pointed out earlier.
Speaker Change: We have we have not done that and so our approach to this is if we're going to find a solution and they all accusations we accept that they just can't round the table because we can deal with that and and we as you know we are very open and very transparent about what we pay and what we shared what we take out.
Speaker Change: And the reason that the.
Speaker Change: The waiting is towards the Mali government and it has been for a while is because we.
Speaker Change: As investors, we are constantly investing in extending the life of mine, but ultimately it evens out over time and so if you change the rules mid way through the game you really compromise you know lots of things in it.
Speaker Change: And not only returns for us now.
Speaker Change: As you have risk that investment, but also for money because you shorten the life very quickly because Jay you.
Speaker Change: Adding a whole lot of royalties and Jack up the costs and it's a net basis said, we've continued to engage with the Marlins, and said and and and we strongly recommend that they have recommended to them that we sit around with experts.
Speaker Change: Have to be even barrick are experts, we couldn't get external third party S. Experts to review the facts and then on that basis, we can find a way forward and.
Speaker Change: And it's worth sharing with you that you know when I took over the leadership in Barrick, Tanzania was closed people in jail.
Speaker Change: There were lots of accusations and all sorts of funds not the southern block.
Speaker Change: Same with Pakistan and and soon after that type of New Guinea.
And today, we have you know we are the I mean, Tanzania is a go to place and.
Speaker Change: And it's a great example of real partnerships and we the biggest contributor to the Treasury Board country mall in that country.
Speaker Change: And in Pakistan, and we've just talked about the partnership that we've now announced and we're moving towards a development and and again the the benefits too.
Speaker Change: US as investors and the provincial government and people of luxury starting in <unk> as well as the federal government are enormous.
Speaker Change: So if there's a way to fund it because if you get down to the numbers. That's what business is all about and.
Speaker Change: And so that's our focus because.
Speaker Change: Otherwise what happens is.
Speaker Change: If you just.
Speaker Change: Load up the cost to them.
Speaker Change: This better than anyone.
Speaker Change: Jordan the laugh.
Speaker Change: And then the optimization of that ore body you leave a lot of great in the ground that's never going to go back no one's going to go back and mine.
Speaker Change: And ultimately it's the people of Mali that debt.
Speaker Change: Luiz.
Speaker Change: You know the investors will move on to another country. Another project another opportunity so.
Speaker Change: So we and we as you know they have a long history in Mali.
Speaker Change: And whichever way you cut it the the the gross the net benefits to Molly you have been in excess of the benefits that we've taken out of that country, because we've continued to reinvest.
Speaker Change: And it's on that basis that we are engaged.
Speaker Change: And we are absolutely clear that if we get down.
Speaker Change: To have an honest open conversation.
Speaker Change: With people that all giving sound advice and are not conflicted.
Speaker Change: All motivated by the things than just getting what's good for moly will find a solution.
Speaker Change: And and and that engagement is ongoing.
Speaker Change: Okay. Thank you very much for that color and then if I could there was a news reported of a potential sale of your 50% interest in Zaldivar I would assume that it's not one of your strategic assets. When you look across the portfolio or are there other assets that you would suggest may not be.
Speaker Change: <unk> at this point today.
Speaker Change: So the zelle de la is very fun, a huge focus of ours at the moment because its about getting the permitting in place and making sure that that line can continue to operate and so we haven't made any.
Speaker Change: Decisional engaged anything.
Speaker Change:
Speaker Change: As far as getting rid of that asset.
Speaker Change: At the same time to your point it is not a core asset because.
Speaker Change: We don't operate it and that's one of our key.
Speaker Change: Focus is is that we are not passive investors, but a big focus at the moment and now work with end of Augusta is to get that out of myself being spent a lot of time in Chile dealing with all the legacy issues of which.
Speaker Change: Most of them all into all behind Us and and this extension of the mining license is important for us it sellable.
Speaker Change:
Speaker Change: And they will.
Speaker Change: At a point in time I mean, it's a valuable assets are noted as if that would.
Speaker Change: It would be difficult to break into accounts. It's also an asset that sort of shares of common sidewall with the escondida. So.
Speaker Change: That's.
Speaker Change: So there's lots of options are once we get them to consider it.
Speaker Change: Hum along as you know we are in the process.
Speaker Change: We have been working with the.
Speaker Change: The government of court of law, and and progressing that that sale.
Speaker Change: Yeah, you know they bought they are that are.
Speaker Change: None core assets within our portfolio that will continue to.
Speaker Change:
Speaker Change: Yet our focus.
Speaker Change: Because particularly as we ramp up these two big projects.
Speaker Change: It really does if you know the one thing you'll see when you look at the 43 101.
Speaker Change: And even when you do the math on the numbers, we've shared with you the.
Speaker Change: Cash flows out of these big a couple of months, particularly with the gold credits.
Speaker Change: Are enormous yesterday, they become our biggest generators of cash until it reminds me of that absolute.
Speaker Change: Clarity of we stick to tier one assets.
Speaker Change:
Speaker Change: Some of the assets that we have them in our portfolio might have a strategic nature nature via tableau in Canada.
Speaker Change: And you know we've been working really hard to do to Bowl day, a real T O one opportunity or tier two opportunity in Canada. We continue to do that every day.
Speaker Change: No valid area, we had an extra three years off and again, that's been a very well run operation through a very dynamic.
Speaker Change: The peso crisis in Argentina over the last six years.
Speaker Change: And it always had a very good year last year. The team has managed access it exceptionally well and and you know it's it's delivered enormous returns to its to shareholders. It also is integrated into the Lama and pass club properties across the national borders.
Speaker Change: That's again, a strategic challenge of how do you manage that if you wanted to really look at it differently or bring it to account in another way at the same time, we have a strong partnership with.
Speaker Change:
Speaker Change: With the Chinese and and and you know I think it would be group. It is a way of sharing more of that.
Speaker Change: Going forward. So we haven't got to a point, where we clear about how we would manage that within our portfolio, but we certainly thinking about it.
Speaker Change: Same goes with PNG, you know, there's more work to do but they all do well to get PNG properly packaged. It's also extremely it's at that point now if we can continue to deliver on that.
Speaker Change: The progress that has been made since we ramped it up.
Speaker Change: It's a very big cash generator relative to the equity portion that we added because we sweep everything until we get a close your money back and all that sort of stuff and so we've re cut the profile of tapping new Papua New Guinea focused in on.
Speaker Change: I'm, making sure that we are.
Speaker Change: You know, we look at getting back some of our investments are in and.
It is a priority.
Speaker Change: Without damaging the long term viability of the asset.
Speaker Change: Well one thing I can assure you is that the Papua New Guinean government has aligned with us on that strategy because that also could do with a bit of return from that but and again that are in the fullness of time you know is it a place we wanted to continue to be as we grow our the sort.
Speaker Change: World Class businesses in places, where we are and we know we can get the money out and we don't have to deal with some of the social issues that you have to deal with in Papua New Guinea.
Speaker Change: That's the way we are we definitely thinking about it we.
Speaker Change: We haven't made clear.
Speaker Change: Decisions on anything but.
Speaker Change: Although it is definitely one that.
Speaker Change: We're doing at this stage.
Speaker Change: And I know I'd, just reinforce you know the one thing.
Speaker Change: When when we started out in 'twenty non gene.
Speaker Change: I mean, the Barrick as it was in was it was a challenging business to run that many.
Speaker Change: Many many scorpions every time you picked up a third of our rock there was a scorpion.
Speaker Change: Today, all of our assets are extremely viable.
Speaker Change: And.
Speaker Change: And and.
Have positive cash flows.
Speaker Change: So and this is the time you know a good strategy. We said we would deliver these two big projects we've done at.
Speaker Change: P V is a big big value creation, and in Barrick, and and and again, you've seen me Oh don't hesitate to clean up the portfolio at the appropriate time and the best time is when you have higher commodity prices.
Sydney.
Speaker Change: We'll continue to keep ourselves very focused.
Speaker Change: And.
Speaker Change: And and and and stick to our.
Speaker Change: Our strategy of having tier one assets.
Speaker Change: We exhausted here in the room.
Speaker Change: Thank you.
Speaker Change: Martin Pradier from Burritos. My question is are you still being salaries and being Lulu too to the employees, who how is that work as well.
Speaker Change: Yeah.
Speaker Change: D D.
Speaker Change: What is the cost for the company you know if you know you're paying salaries and you have no production basically.
But as I said at the moment, we haven't really there's still that because its a temporary closure.
Speaker Change: And what we have done is taken out the gold.
Speaker Change: Out of the circuit, so we have produced goals.
Speaker Change: So to be able to full let's say a good when we restart again and.
Speaker Change: And we've put everything on Oh, no, it's sort of running in maintenance, so proper cambria care and maintenance.
Speaker Change: Theres no big net cost at this stage if it was all too to restart and get going.
We caught continue with this for for long, but certainly we can go for a couple of weeks or months, but Huawei, you try and get closure with the Mali and government at that point, we would have to make a different decision we havent.
Speaker Change: That's it.
Graham: Graham do you want to add to that.
Speaker Change: No I mean, the only thing I would change.
Speaker Change: If you.
Speaker Change: If you look at a pool ground as a proxy.
Speaker Change: If we do go to a care and maintenance environment.
Speaker Change: Historical run rate there was about $10 million a month and holding costs. So you know that's that's a reference point, if you're looking for something.
Okay.
And one other question the cost of Willoughby, who was 14% higher.
Speaker Change: My production falling only 5% Oh everything compared to the previous drilling about all in sustaining cost.
Speaker Change: I think it was the cost reported close to me.
Speaker Change: And I Wonder why.
Speaker Change: So.
Speaker Change: What what we had the big driver in the costs and PV in quarter four was that we.
Speaker Change: The mine plan, we had low grade.
Speaker Change: And so that impacts the unit costs.
Speaker Change: And and we our focus was to get we will focus on.
Speaker Change: Throughput and recovery during that period, we gotta go down not a fix it they can die and upgrades.
Speaker Change: Great Yeah, a number of a disarming facilities thickness.
Speaker Change: And we need that to do.
Speaker Change: Lift again, the throughput right and Duval to deal with the recovery improved recovery and we and we've we showed in the slide.
Speaker Change: Uh huh.
Speaker Change: Uh huh.
Speaker Change: <unk>.
Speaker Change: The schedule there is.
Speaker Change: How are we planning to move.
Joe: Joe We will as I said, we were targeting middle six hundreds.
Joe: And then next year, we'll go above 800, and we should stay at a in a.
Joe: And even after that Theres still ultimately we get to just 90% recoveries, but its out there were a couple of years as we say it in our plan anyway.
Joe: But the big Big Big the the big sort of fixes.
Joe: And this quarter readout for 35 days, and then went down again in quarter four and after that we pretty much addressed the big.
Joe: And.
Joe: Shutdowns due to fixed and tie in some additional equipment.
Joe: Yeah, I mean, the key thing there is that the grades were significantly lower quarter on quarter and that was really the big trough.
Joe: Yeah.
Joe: So we move to.
Joe: The virtual platform.
Joe: Thank you.
Speaker Change: She joined the question queue. You May Press Star then one on your telephone keypad, you'll hear tone acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.
Speaker Change: Our first question is from Josh Wilson with RBC capital markets. Please go ahead.
Josh Wilson: Yeah, Thanks for taking my questions.
Josh Wilson: Looking at the production guidance for both 2025 and also over the five year.
Josh Wilson: Outlook the numbers have changed versus what was issued in.
Josh Wilson: November even if we adjust for the impact of our moly in there I'm wondering is there any sort of fundamental changes in how the assets are being evaluated or its just maybe reflecting some conservatism versus what the prior November budget wise. Thanks.
Speaker Change: Hey, Josh it's scram, yeah. So I think it's important to recognize that you know when we shared with you. The graphs in November I'm you know we gave you.
Josh Wilson: Across the river.
Josh Wilson: There was a.
Josh Wilson: Very small scale, so they don't really meant to be.
Josh Wilson: Precise information to give you sort of directional information in terms of where the production is growing.
Josh Wilson: And the overall impact of that production on costs.
Josh Wilson: Capital et cetera. So you know we do revise these from time to time and and you know when you look at this one there are some small changes.
Josh Wilson: Some of the changes that have taken place in that business from.
Josh Wilson: November to now.
Josh Wilson: Some of the impacts of.
Josh Wilson: You know for example, the.
Josh Wilson: So down in a new loan and some of the changes that we've seen across the rest of the portfolio. So yeah. I don't think you should get too too focused on the granularity of the graph.
Josh Wilson: It's really about the direction.
Speaker Change: Gosh Watchman as you said, we've already got it and then you start trying to.
Josh Wilson: Let's pick about the exact number so I.
Josh Wilson: I think we've we've looked at our guidance very carefully and and made sure that we're you know we're focused on.
Josh Wilson: Range that we can deliver on and and will work from there going forward, but I think two grams point, the direction of travel and and and the fact that we're saying you know the the gross out to 'twenty two a non as a minimum of 30% is.
Josh Wilson: The takeaway here and when you look at the cash flow impacts of that to view model them, you'll see what it means and and so as you know we've had this conversation for most of your career you are not and that is yes.
Josh Wilson: Growing cash flow is a key part of what I've always being able to do and.
Josh Wilson: The production is important but.
Josh Wilson: Ultimately the value we get from those growth opportunities and where you have very motivated with this and I think the other thing I would add.
Josh Wilson: Is.
Josh Wilson: When you look at the quality of our people you know we took board over a period of two days through these feasibility studies with two separate teams that have been working on these studies for a number of years now and you know we've got a quality group of people quad.
Josh Wilson: All of building out these.
Josh Wilson: Big expansion projects and and ultimately that's the new generation of leadership in Barrick, because that will come out of that along with all.
Josh Wilson: Our corporate team of subject matter experts.
Josh Wilson: So it's an exciting time in and definitely everyone feels that we have the ability.
Josh Wilson: And the financial capacity to deliver these expansions.
Josh Wilson: Okay.
Josh Wilson: One more question if I can add just on record geek.
Similarly, theres been a number of articles that have continued in the press about possible buyers for a portion of the assets. It sounds like that deal has progressed a bit lower than maybe what we thought a year ago I'm wondering.
Josh Wilson: Is there any kind of status updates.
Josh Wilson: That barrick at least can issue and then.
Speaker Change: From the other perspective, if there isn't a deal that's announced for your partners in country.
Speaker Change: The outlook for Pakistan to fund their portion of it.
Speaker Change: Thanks.
Speaker Change: So with the current funding.
Speaker Change: Our lending group our progress.
No no.
Speaker Change: No.
Speaker Change: Way that Pakistan would not be able to fund its share and it has been.
Speaker Change: Up until now funding as chair as well and they said we don't have any there's no. We don't underwrite any part of the Pakistan investments and so absolutely.
Speaker Change: There's no risk of that in my mind and in and the lenders mine as well because that's been one of the focuses that they had on the ability for the Pakistan side of the.
Speaker Change: Equity to be able to fund this year.
Speaker Change: I think that the.
Speaker Change: Yeah.
Speaker Change: The.
Speaker Change: The significance of an investment from Saudi Arabia is not lost on us and not lost on anyone.
Speaker Change: And and again as you know we are very strong partners in Saudi with.
Speaker Change: The Saudis and are equally strong partners with the Pakistani and Pakistan and and so we were always there to help them facilitate but were mindful that this is a ongoing discussion between Pakistan and Saudi Arabia, and I'm, absolutely sure that they will come.
Speaker Change: Or do some sort of.
Speaker Change: Arrangement sometime.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: Our next question is from Tanya Chico disconnect with Scotia Bank. Please go ahead.
Speaker Change: Alright, great.
Speaker Change: Thank you so much.
Speaker Change: My question.
Speaker Change: In total.
Speaker Change: Alright.
Speaker Change: Alright.
Speaker Change: Financial one gram.
I need to ask you about taking the write down.
Okay.
Speaker Change: Got it.
Speaker Change: We're going to be honest, because I'm, giving given historically.
Speaker Change: We're going out with behavioral care.
Speaker Change: Great.
Speaker Change: One was on care maintenance for a while before you know.
Speaker Change: It looks like the carrying value.
Speaker Change: So my question is number.
Speaker Change: Number one.
Speaker Change: Organic change Andrew.
Well and does that mean every quarter.
Speaker Change: It is an up and running and we aren't going to be it would be.
Speaker Change: Value.
Tanya: Thanks Tanya.
Tanya: It doesn't mean, we will be reviewing it every quarter we.
You know we were under the accounting rules, we were required to look for food signs of impairment and obviously the engagement that we've had ongoing in Mali, which it.
Tanya: What was the trigger for that and on the back of that we we looked at our holding value and in the the you know the potential outcomes in the future which of course Hum multiple and a you know we had to make some assessments around that and based on that we we considered that the.
Tanya: The goodwill that we had previously written up against this asset when Barrick acquired it and the Wrangled transaction was no longer appropriate.
Tanya: So it was on that basis that we've we've written it down but we know we don't expect to have to do that on an ongoing basis.
Tanya: If there was a material change in the circumstances.
Tanya: Which then had an impact on the potential future cash flows we would assess it at that point, but.
Tanya: That's not what we expect going forward.
Tanya: With reference to your comment about program it's.
It's really a it's all about what the holding cost one sooner in the case of program the holding costs notebooks were extremely low and therefore, even though we.
Tanya: You know I had situations with which might've caused us to look at whether there was an impairment because all the costs not book was very loud it never got to that point.
Tanya: Okay Alright.
Speaker Change: I second.
Tanya: Yeah.
Tanya: A follow up on.
Tanya: Hi.
Tanya: I appreciate that.
Tanya: Alright.
Tanya: Right.
Tanya: Or directional.
Tanya: I am coming back to the capital picture Directionally.
Tanya: That was provided in the Investor day, Bookshelves 'twenty 'twenty.
Tanya: Peaking at about 4.2 ish range on capital and then guiding to a decline in 'twenty or 'twenty 'twenty eight 'twenty nine.
Tanya: Yeah.
Tanya: Capital outlay and flattish like 'twenty six 'twenty seven.
Tanya: Okay.
Tanya: Capital.
Tanya: It would be more than that.
Tanya: Because of that.
Tanya: Okay.
Tanya: So just trying to understand what happened.
Tanya: They'll get round.
Tanya: Hi.
Okay.
Speaker Change: So Tony I, just just to be clear when I answer the need. His question was really in the context of our specific guidance for 2025.
Speaker Change: With reference to your your question, which is really about the longer term outlook. Yes, there have been changes in the sequencing of the timing of capital at those feasibility studies as we've got more details on the exact timing of the spend so yes, there's some shifting between 26 27 and <unk>.
Speaker Change: H, but how did you would've seen in terms of the gross numbers that we previously gave guidance on for both the water project in the record dig project. Those total numbers haven't changed so it's really just the timing of the spend and as we incurred over the over the period of the projects.
Speaker Change: Yeah.
Speaker Change: 'twenty 'twenty.
Speaker Change: Thanks, Jim.
Speaker Change: Okay.
Speaker Change: I felt we were running at about 300 million that we could take it off line.
Speaker Change: All right.
Speaker Change: Technical questions, if I can ask mark.
Speaker Change: I wanted to come back to Jeff.
Relocation.
Speaker Change: Graham I, just remember from the mine tour.
Speaker Change: That cabinet hearings in the Bay area.
Speaker Change: Relocation 1500 people or thereabouts.
Speaker Change: It has to be done over a period can you just confirm.
Speaker Change: Confirm that yeah.
Speaker Change: Kay and we need all of it can be done I just don't remember.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: So.
There's.
Speaker Change: I'm, telling you we've spent a lot of time building in flexibility and the focus is the thought to a wall and the starter dam and so that's a so we can manage that and also we've looked at different access is into the area, but into the be able to start the construction.
Speaker Change: Of the starter wall and then looking at the bigger projects. So.
Speaker Change: Again, we are managing.
Speaker Change: This is a social program as you know we've done many of these before and do you need to do it and so we built in some flexibility by just the approach that we've taken on.
Speaker Change: The phases that we will end and the key for us however.
Speaker Change: Is to get the geotechnical drilling done so that we can build the.
Speaker Change: Talk to them and the foundations for the mine.
Speaker Change: Walls. Because this is remember this is a highly sought to make area. So the construction of this data because of because of the highly engineered a construction and in jubail to do it and ensure that it's it meets all the criteria for that setting.
Speaker Change: We needed to do that.
Speaker Change: And a lot more geotechnical work than one would do for the standard Tightenings death.
Speaker Change: Mike on the critical path.
Speaker Change: On the critical path.
Speaker Change: Our relocation.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: We've got we've got.
Speaker Change: At until 'twenty eight 'twenty nine.
Speaker Change: To to be able to have the starter dam functioning.
Speaker Change: Yeah.
Speaker Change: Our original plan was to be quite well advanced with the main Dan do you want to add to that.
Speaker Change: It was just said we've got towards the end of 2020 and on and then there's still additional work ongoing which has got some flexibility going into 2013.
Speaker Change: Obviously, our priority is to get the Saddam geotechnical work done as you'd pointed out Okay. And then and then just for that Tanya we have extended the legal Oh look all of them.
Speaker Change: As the current dam so with another lift so we have built some flexibility into that.
Speaker Change: Okay.
Speaker Change: Alright.
Speaker Change: Thirtyish Rapiscan.
Speaker Change: That's a pretty fair, but as you know.
Speaker Change: This is this is so so.
Speaker Change: I don't think I would just point out we get a bowl of his dad, because otherwise why are we doing all this work so.
Speaker Change: And just on that.
Speaker Change: Thanks.
And because of that.
Speaker Change: Hi, there.
Speaker Change: Right now they estimated capital is that what you're asking you're breaking up but I mean, we're very comfortable with the current outlook on on our estimates for the completion of this whole expansion.
Speaker Change: Okay.
Speaker Change: And then my final question I guess wanted to get done.
Speaker Change: Okay.
Speaker Change: Just wanted to ask about kind of Mark you mentioned that you have.
Speaker Change: Are you happy obligation.
Speaker Change: Joint venture Kim here for Mike intricate joint venture once you have that feasibility study.
Speaker Change: You know you know near my decides they do not want if I can.
Speaker Change: For miles for some reason is.
Speaker Change: Is that a unilateral right you have to be able to disgrace material from the joint venture.
Speaker Change: Hum.
Speaker Change: Yeah.
Speaker Change: Right.
Speaker Change: So they have the obligation to take it into its a potent coal and it's an automatic ones. So if it meets the criteria is as laid out in the in.
Speaker Change: And the joint venture agreement, we have the right to put it an obligation and they have the obligation to accept it and.
Speaker Change: And settle the payment.
Speaker Change: In cash or dilutes, that's the option.
Speaker Change: It's very clear.
Speaker Change: Of course, there's always opportunities for us to jointly agree on a different way of.
Speaker Change: Ah you know, bringing it into the.
Speaker Change: Joint venture, but without a doubt.
Speaker Change: Walmart as real value in.
Speaker Change: To all our shareholders and Nevada goldmine.
Speaker Change: Mhm, Okay, great. Thank you.
Speaker Change: Yeah.
Daniel Major: The next question is from Daniel Major UBS. Please go ahead.
Daniel Major: Hi, Mark Graham can you hear me okay.
Daniel Major: Yeah.
Daniel Major: Hi, perfect.
Daniel Major: Great. Thanks, So a question so.
Speaker Change: A couple the first one on the buyback Mark Hughes.
Nike Inc.
Speaker Change: We intend to continue buying back stock you bought back quite a lot in the fourth quarter.
Speaker Change: Can you give us any steer on how we should expect that the kind of run rate is there a target or is it very much kind of share price dependent.
Speaker Change: We should be thinking about the quantum of the buyback in subsequent quarters.
Speaker Change: Yeah.
Speaker Change: So yeah.
Speaker Change: We look at this and last quarter.
Speaker Change: We are managing a big capital program, our cash flow, we've got higher commodity prices.
Speaker Change: Revenues.
Speaker Change: And very clearly we have absolutely no.
Speaker Change: Hesitation do buyback I'll share when our weighted said sort of these low.
Speaker Change: Process and and we'll continue to do that at the same time as you know both grab and I am sure. It is.
Speaker Change: This is through many challenging times and the one thing you don't want to be is beholden to the market as you go into a big capital program and we're mindful of that we are we have all the.
Speaker Change: Facilities to build is ensure that we get to where we want to get too and we'll make sure that we balance that carefully.
Speaker Change: As we've demonstrated in the run rate as you pointed out that in full.
Speaker Change: For quarter, four was well over $1 billion a year so.
Speaker Change: Sure.
And we will we.
Speaker Change: We look at this every day and.
Speaker Change: And we'll make the decisions on a daily basis, and that's what we do.
Speaker Change: Okay. Thanks.
Speaker Change: And the next one.
Speaker Change: On your Capex guidance looking at the 1.7 to 1.9 of project Capex can you give us a breakdown of how much of that is going to live in one and <unk> approximately.
Speaker Change: I'm sure you can answer that.
Speaker Change: And you got another question, while you do get to hit her answer.
Speaker Change: Yeah I could go for one more so yeah I appreciate that Molly.
Speaker Change: Situation, you can't comment on too much specifics, but you made it very clear that the outcome wouldn't impact the gross trajectory as a business can you just kind of clarify also what it would have any impact on the project pipeline funding decisions around.
Speaker Change: Projects, if you don't have that cash flow available to be distribute within the group.
Speaker Change: You know for an extended period.
Speaker Change: So we have we're very comfortable with where we are we'll be able to manage it.
Speaker Change: Okay. Thanks, Yeah every day, we have days like today with a golf brass and copper brass we're building a.
Speaker Change: Cushion in the funding structure so.
Speaker Change: <unk> had a long time and that the last three months.
Graham I: Graham on that Dan.
Speaker Change: I'll come back to your question then.
Speaker Change: And as you'll see from the MD&A, where we're guiding approximately $1 billion of spending on record take on 100% basis. So I'll share of that would be just over half.
Speaker Change: And on pneumonia, we guarding point 6 billion in capital spend for 2025.
Speaker Change: Hey, you got would add.
Speaker Change: That.
Speaker Change: Typically oh and in both cases, but in Nevada.
Speaker Change: Because it's got one.
Speaker Change: Circuit, we're already running.
Speaker Change: And that's as it supports that the financing and so higher copper prices really do live bring down the road the exposure that Barrick has to support.
Speaker Change: That expansion so.
Speaker Change: Right now with the outlook on.
Speaker Change: Copper and and and in general our revenue generation capacity days. These projects, all becoming more affordable by the day as we collect accumulate and that's why it's important for us to manage that net debt position as we.
Speaker Change: As we go.
Speaker Change: As we.
Speaker Change: Go towards these big capital Yes.
Speaker Change: Thanks.
Campbell: Very brief follow up on that Campbell, he's amongst them to be clear that you.
Campbell: You would expect to have crews the minority contributions to the <unk> capital as you spend them so that show up in the P&L.
So cashless that.
Yeah, So from an accounting point of view and we're going to be consolidating that asset. So yes, you can see it from that point of view, but from a from.
Campbell: From a cash point of view, we only funding.
Campbell: Effectively 55% of the project and because there's a 10% free carried interest to our.
Campbell: Oh 50 over 90 is about 55, so that's what we found from a cash point of view.
Campbell: Great. Thanks, a lot.
Campbell: Okay.
Campbell: Thanks Ted.
Speaker Change: The next question is from John Tumazos with John Tumazos very independent research. Please go ahead.
John Tumazos: Thank you for taking my question Mark.
Speaker Change: Mark I'm joking.
Speaker Change: I'm looking at.
Speaker Change: One is to try to convince them.
Speaker Change: Nico or Alamos schooled shareholder.
Speaker Change: By Barry consent.
Speaker Change: And it's not necessary to tell the shareholders should your good managers because they know that.
Speaker Change: And they know that you've built good months.
Speaker Change: There are politically risk averse people.
Speaker Change: And.
Speaker Change: I was thinking of three tactics.
Speaker Change: Minor repairs in your strategy.
Speaker Change: The my.
Speaker Change: How someone to buys at Barrick shares instead of the Agnico shirts, and let me just see if any of these three minor changes appeal to you.
Speaker Change: One.
Speaker Change: It would be if you asked your exploration department.
Speaker Change: To acquire a couple <unk>.
Speaker Change: <unk> 1 billion dollar.
Speaker Change: Exploration and development projects with large resources.
Speaker Change: The shift of part of your resource base to Canada.
Speaker Change: And the premiums of course are smaller.
Speaker Change: For these development companies.
Speaker Change: The.
Speaker Change: Need financing.
Speaker Change: Second tactic would be a few advanced.
Speaker Change: Donlin Creek in Alaska.
Speaker Change: Which is in the U S. Because this is so.
Slower return project and a safer place.
Speaker Change: A third tactic.
Speaker Change: Would be if you had a corporate policy.
Speaker Change: Investing every penny of North American Cashflow in North America, plus half of the cash flow from outside North America into North America.
Speaker Change: To try to.
Speaker Change: Comfort to investors, who are afraid of political risk in foreign countries.
Mark: Did any of those things makes sense to you Mark.
I guess, John things for that advice.
Mark: It's.
Mark: I think partially a theres a bit of.
Mark: Calvin Hussein's than any one thing.
The one point is that.
Mark: That's the world's changed maybe that was.
Mark: Appropriate you know a year ago, but.
Mark: You know I think AR is up.
Mark: Very uncertain.
Mark: <unk> environment.
Mark: That is developed around.
Mark: Both Canada and.
Mark: And the United States and you know again, we're very invested in the United States and we all.
Mark: Heavily invested in.
Mark: Exploration and pursuing new opportunities both in the United States and Canada, just as we are in all the other highly perspective, our regions and so again, what I think what will eventually drive us.
Mark: Drive those investors to.
Mark: Two in and invest in US is that you know we've demonstrated that we are a safe pair of hands with us.
Mark: Shareholders are.
Mark: Investments, we haven't asked them for anything for a very long time, and we've never diluted them and today. If you look at where we are compared to where we were in 'twenty not gene. We all a lot better off than a whole lot more valuable and we have done nothing to destroy that value.
Mark: So.
Speaker Change: You know as you know John going back to 2011 in Randgold.
Speaker Change: And all the M&A activity and the fact that we focused on just being a little bit more conservative.
Speaker Change: And diligent in the way we invested.
Speaker Change: Held as cash.
Speaker Change: Cash.
Speaker Change: We separated us from the investors and a lot of people migrated from there's hardly a over valued assets or equities into the red and gold stock and made it the best performing goldstock ever.
Speaker Change: But you know I think we set out to build something and Barrick, we would not.
Speaker Change:
Speaker Change: We were completely aware of the challenges we had we would prepared for the.
Speaker Change: Flash and then Covid and.
Speaker Change: And the the sort of dynamic will that we've sort of entered into in the last couple of years and and everything has just been put on steroids and in in the last year.
Speaker Change: Right.
Speaker Change: 28 days.
Speaker Change: And so you know I think there's a big question Mark every way about.
Speaker Change: Where would it be and what to look for and what's been good for me has always focused in on on projects that.
Speaker Change: Make buddy.
Speaker Change: In spite of the market.
Speaker Change: And both our Nevada and <unk>.
Speaker Change: <expletive> and PV Pueblo Viejo.
Speaker Change: Full mile.
Speaker Change: All assets that don't make money, regardless and so as the market gets their head around the fact that we still very clear and and on top of that there's no other gold company, where the shell the management owned as much as what the management team.
Speaker Change: So we're very motivated to deliver against that plan and.
Speaker Change: And you know, we I mean, just to get back to your three points.
You know in a nice form.
Speaker Change: For them, we would exercise any one of those not necessarily.
Speaker Change: Exactly all you explained it but there is each one of those.
Speaker Change: <unk> does have a have an option that we've already discussed in our team.
Speaker Change: Thank you.
Joshua Gale: The next question is from Joshua Gale with Rsi Associates. Please go ahead.
Joshua Gale: Hi, good afternoon, I want to thank you you and your team Mark for your long term commitment and acquiring reserves.
Joshua Gale: At a very low cost without diluting shareholders and so I'm, a long term investor I wanted to kind of.
Joshua Gale: Yeah.
John Tumazos: Continue on what Mr. Tumazos was saying.
Speaker Change: In the sense that the generalist investor has been pretty absent with gold mining stocks in the last few years, even as the gold price has risen because it.
Speaker Change: It wasn't it wasn't being realized at the bottom line due to higher costs.
Speaker Change: In some cases lower production.
Speaker Change: Peers that.
Speaker Change: Your costs are stabilizing on the labor front and on inputs like oil and I wanted to ask you to do you see that continuing which is enabling the margins to really explode higher and it would seem to me at some point the generalist investor is gonna be awakened.
Speaker Change: By these very rapidly increasing margins gold is up almost $900 since the beginning of last year and you have all these tens of millions of dollars of reserves in the tens of millions of ounces of reserves in the ground that you've acquired such a low cost it seems like.
Speaker Change: You're in the catbird seat, even with everybody focusing on Mali, which is like the tail wagging the dog as far as I'm concerned when I walk us long term.
Speaker Change: Yeah. Thanks, Josh I mean, it's like you know you share exactly what I think so.
Speaker Change: The point here is.
Is that.
Speaker Change:
Speaker Change: When you win them when we look at allocating I know, let me start on the cost side first first of all.
Speaker Change: You you need to start looking at the cash cost <unk> cost and then the Orleans sustaining costs and there's still quite a big Delta, which we shared at the Investor day. So we'll bring that down as we address some of the ongoing sustainability investments or sustainable.
Speaker Change: The investments into <unk>.
Speaker Change: Projects, particularly in Nevada.
Speaker Change: But that is definitely starting to manage that and we are starting to forecast that decline in and that extra cap.
Speaker Change: Capital sustaining capital requirement to fixed assets.
Speaker Change: And I would just add that the success of being able to roll forward. Your 10 year plans always comes with an extra sustainable capital because you've now got more requirement to put in.
Speaker Change: Additional maintenance capital because you got a big old body and a longer life.
Speaker Change: And some times and getting back to your second point.
Speaker Change: You know I've been in this industry I think longer than you even.
Speaker Change: And and the one thing as you go through these periods, where the equity becomes very focused on trade and the gold equities have rarely been about short term trades and we've now started seeing some of the longer term investors come back in the stock certainly all out.
Speaker Change: Big investors every.
Speaker Change: You know growing their positions and outrageous again, and and and we've got to really spend more time accessing those long.
Speaker Change: 10 pools of capital, which all invested team Investor Relations team is focused on and it's you know and and and a lot of the real fun because it's been on the physical because of this obsession.
Speaker Change: And correctly, so of the high risk nature of the global economy, and the geopolitical situation across the world, including Canada, and North America. So it is a very dynamic place and so and in my experience.
Speaker Change: Is to survive and dynamics like that because all grew in geopolitically very dynamic I grew up in a sort of.
Speaker Change: The market is.
Speaker Change: Make sure that your assets all bulletproof as far as viability Guy So and we've definitely got that so I think we're in very good shape and and I and again, it's our job to be able to explain to people when you buy our stock.
Speaker Change: You have to buy it from another owner because we definitely don't issue. It because we're also buy it in the market. So you know that in itself is a story of you know, who we are and Barrick and how all our outlook for our business and ensuring that we can.
Speaker Change: Continued to create value for our shareholders and it's it's the the and we are starting to get our head around that and what's the growth now and the decisions are made we can we can really look on a little harder on how we can work to Jordan's point.
Speaker Change: To unlock that value and we will do that.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: There are no more questions from the conference call.
Speaker Change: Alright, well, thank you, ladies and gentlemen for your time, and those who founded and and again as usual. Our team is all available you reach out to any of us are or to our website will be available to take questions unfold.
Speaker Change: Those shareholders on the call, we'll probably be speaking to you in the next day or two so again chat to you soon thank you again for your time.
Speaker Change: This concludes today's event.
Speaker Change: Should you have additional questions. Please contact the Barrick Investor Relations Department you may disconnect. Your lines. Thank you for participating and have a pleasant day.
[noise].
Speaker Change: Yeah.
Uh huh.
Speaker Change: [noise] [music].