Q1 2025 Barrick Gold Corp Earnings Call
[music].
Speaker Change: Ladies and gentlemen, thank you for standing by this is the event operator welcome to Barrick's results presentation for the first quarter of 2025.
Speaker Change: Following today's presentation, a question and answer session will be conducted.
Speaker Change: If you have a question.
Speaker Change: And our joining the event by telephone please press the star key on your touch Star then one on your telephone keypad you.
Speaker Change: You won't be taking questions from the room first.
Speaker Change: As a reminder, this event is being recorded and a replay will be available on barrick's website. Later today may the seventh 2025.
Speaker Change: I'd now like to turn it over to Mark Bristow, President and CEO with Barrick. Please go ahead, Sir Thank you very much and good.
Speaker Change: Good morning, ladies and gentlemen, and particularly.
Speaker Change: If I could have made an effort to get this morning. Thank you for joining us today.
Speaker Change: There's a lot happening as you are well aware in the world right now.
Speaker Change: Volatility and instability in shifting double priorities.
Speaker Change: Our philosophy at Barrick has never been.
Speaker Change: To manage our business for the short term.
Speaker Change: While we are always ready to take advantage of hog old process, we remain focused on bolding our business.
Speaker Change: That can deliver sustainable profitability.
Speaker Change: Over the long term.
Speaker Change: Through the cycles.
Speaker Change: Through challenges.
Speaker Change: And through change.
Speaker Change: Just over six years ago.
Speaker Change: We set out to repossession and rebuild Barrick.
Speaker Change: As the world's most valued gold and copper mining company.
Speaker Change: One that creates real long term value.
Speaker Change: Not just for investors, but for.
Speaker Change: Every stakeholder we work with.
Speaker Change: This past quarter. It was another busy one.
Speaker Change: As we continued on that journey.
Speaker Change: You'll see today, how we've progressed across every part of the business from operations and growth to sustainability in exploration.
Speaker Change: As part of this journey, we've also taken the step to change our name to Barrick Mining Corporation and our ticker on the New York stock exchange to the single let Toby.
Speaker Change: It's a symbolic but important shift that reflects our strategic focus on our portfolio of long life gold assets supported by a growing copper business.
Speaker Change: Before we begin as usual I'd like to draw your attention to.
Speaker Change: Two the customary cautionary statement regarding forward looking.
Speaker Change: Information you can find the full details on our website, which you can review at your leisure if you sell wish.
Speaker Change: Moving now to the group highlights.
Speaker Change: I'm pleased to show you another positive.
Speaker Change: Once again, pointing in the right direction.
Speaker Change: Production was up at the top of the gardens, and we continue to forecast improvements throughout the year.
Speaker Change: We have maintained the dividend at 10 cents per share reduced debt and continued with all share buyback program.
Speaker Change: We've also announced the $1 billion sale of Donlin, the first step in rationalizing our portfolio to focus squarely on our tier one assets.
Speaker Change: And across the business our growth projects continue to gain momentum momentum with Pablo via her ramping up full mine moving to pre feasibility Lamont and Rick codec moving to construction and a new discovery already within the REIT, Rick <expletive> mining lease.
Speaker Change: Turning to our operational results during the quarter.
Speaker Change: We completed significant projects at Pueblo Viejo, Nevada gold mines in Nevada.
Speaker Change: Is this any us well for the rest of the year and beyond.
Speaker Change: Copper had a great quarter and we remain on track to meet our full year production targets for both gold and copper.
Speaker Change: Looking at the financial results.
Speaker Change: By all measures this was a solid quarter, reflecting the strength and resilience of the business we have bolt.
Speaker Change: On a year on year basis, despite the temporary shutdown of Lyla on Qatar and the previously mentioned maintenance work, we delivered significant growth in operating cash flow free cash flow and earnings all supported by a higher gold price of course.
Speaker Change: I'll point, you to a realized gold price in quarter, one, which already looks conservative given where the spot prices today.
Speaker Change: Capital is tracking in line with our plans with growth capital expected to increase over the a.
Speaker Change: As our two major construction projects ramp up the activity.
Speaker Change: Sustainability as I'm sure you're all aware by now remains the cornerstone of how we operate.
Speaker Change: It's not separate from our business.
Speaker Change: It is our business.
Speaker Change: Mining must leave at least a lasting positive impact and that's what we strive for across every one of our socks.
Speaker Change: This quarter, we made strong progress on our journey to zero.
Speaker Change: With a big focus on managing by walking about we completed over 31000 critical control verifications across the group reinforcing leadership visibility.
Speaker Change: And real time risk management.
Speaker Change: We recorded improvements in the lost time injury frequency rate and total recordable injury frequency rate.
Speaker Change: No class, one or two environmental incidents.
Speaker Change: And very importantly, a clue.
Speaker Change: Last three events were down.
Speaker Change: Materially.
Speaker Change: Our water use efficiency remains above 80% keeping us at the forefront of the industry.
Speaker Change: At Ricker, <expletive> we secured environmental permits and both the Asian Development Bank and the International Finance Corporation, a publicly disclosed the intended participation and Rico <expletive> financing.
Speaker Change: At PV. The first families have moved into new homes under our resettlement program, which is guided by the IFC performance stand at five.
Speaker Change: We've also rolled out our social metrics tracker.
Speaker Change: Aligned to the UN sustainable development goals to track real impact at the site level.
Speaker Change: So <unk>.
Speaker Change: Moving to North America, and the operations day this remains barrick's value Foundation.
Speaker Change: And continues to perform steadily.
Speaker Change: We've taken clear steps this quarter to show up in our portfolio.
Speaker Change: As I indicated already.
Speaker Change: Donlin sale is an important move aligned with our strategy to focus on tier one assets.
Speaker Change: In line with that we have also launched a process to test the market for hemlock.
Speaker Change: Yeah.
Speaker Change: Let me be clear to everybody out today, particularly this has no bearing on our commitment to Canada.
Speaker Change: On the country, we've launched a significant drill program in the southern Abitibi, which I will discuss later we are.
Speaker Change: I'll also <unk>.
Speaker Change: Flooring in the U S in Nevada, both within the joint venture and on Barrick ground.
Speaker Change: As well as in Arizona, Idaho and Montana.
Speaker Change: These programs target, both gold and copper and form a core part of our organic growth strategy as again I will touch on a little later.
Speaker Change: And along with our investments in people, we've now rolled out the Barrick Academy.
Speaker Change: At Nevada Gold mines.
Speaker Change: Giving frontline need has the tools to drive performance improve safety.
In bold operational excellence.
Speaker Change: Turning to Nevada Gold mines, specifically, we had a solid quarter, although production was lower on the back of planned rest of maintenance at Carlin Importantly, we start we're starting to see real efficiency gains from the new come out to open pit.
Speaker Change: Fleet and organizational optimization, which is already driving Minot unit mining unit cost back down to levels, we haven't seen since 2022.
Speaker Change: At Cortez production was lower quarter on quarter due to fewer high grade underground tons and lower grade open pit ore stacked on the leach pads.
Speaker Change: At Turquoise ridge throughput increased quarter on quarter at this age autoclave, so lower grades offset the volume gains.
Speaker Change: Still recovery performance was strong hell.
Speaker Change: Helping support overall results.
Speaker Change: During April April we also completed the planned gold quarry rose to shut down.
Speaker Change: So with the major maintenance behind us in Nevada Gold mines were well set for an improved quarter, two and a better second half.
Speaker Change: Moving to full mile.
Speaker Change: This is one of the most exciting projects as I've mentioned before in our portfolio.
Speaker Change: We currently have 16 rigs training with drill holes, averaging over a kilometer in depth.
Speaker Change: Yeah.
Speaker Change: As we've already disclosed grades at formyl are more than double those that gold rush.
Speaker Change: In early geotechnical data points to more competent rock strength, which can potentially support larger scale stoping than that that are that of all other Nevada operations.
Speaker Change: Combined with its proximity to existing infrastructure. This makes four mile a clear standout.
Speaker Change: We've now advanced the project into feasibility study with a focus on defining the full resource footprint.
Speaker Change: In evaluating the GM metal metallurgy of the ore body and access options.
Speaker Change: All of which are critical for future development.
Speaker Change: We've already submitted the plan of operations for the potential portal disturbance and commenced with baseline studies for permitting. So this work is well underway.
Speaker Change: When you consider the potential size and quality of the ore bodies located in a jurisdiction with multiple tier one assets. It's clear that formal has the potential to deliver unparalleled value for barrick in Nevada.
Speaker Change: It also explains why we chose to divest Garland.
Speaker Change: An asset that was not in a position to compete with full mile for capital in our portfolio.
Speaker Change: Canada as I said earlier remains a KOL destination for us and.
Speaker Change: And we are fully committed to growing our presence here.
As you can imagine, it's a highly competitive environment, especially with the recent uplift in gold prices, but.
Speaker Change: But we are focused on building a high quality portfolio of targets that can support long term value.
Speaker Change: We've just recently kicked off a drilling project at Norris, making a significant step in rebuilding our exploration pipeline in the region and continued to.
Speaker Change: Progress and evaluate other project opportunities. We're also busy with the permitting for the next drill phase.
Speaker Change: At the stage at Lake project.
Speaker Change: Shifting to Latin America, and Asia Pacific, We've seen stellar performance across the board this quarter.
Speaker Change: Our signature growth project Pablo via her made solid progress.
Speaker Change: Rick codec as I mentioned earlier has officially moved into construction phase and is already showing an exciting early indicator of upside that comes with tier one assets.
Speaker Change: <unk> delivered a standout performance, yet again and development of phase I of the Leach pad is on track and the mine is set up for another strong year.
Speaker Change: At <unk> the ramp up continues and the operation commenced dividend payments this quarter.
Speaker Change: Moving specifically to Pueblo Viejo. This is a long life operation with a planned mine life of over 20 years and once the ramp up is complete we're targeting production of more than 800000 ounces a year.
Speaker Change: The plant was down for 35 days during the past quarter as we completed a series of upgrades.
Speaker Change: These included improvements to the flash recycle system.
Speaker Change: This lab pump upgrades and a complete overhaul of this thick enough St too well.
Speaker Change: As expected gold production was lower quarter on quarter, but we saw improved but improvements throughput.
Speaker Change: Proved throughput in April.
Speaker Change: And the team continues to make good progress under our go for gold plan.
Speaker Change: We are on track to meet guidance this year and our target is to produce more than 800000 ounces in 2026.
Speaker Change: This slide shows the key components of our expansion and ramp up program at Pueblo Viejo and as you can see we are on track and all major projects for the quarter were completed as planned.
Speaker Change: We remain confident that this expansion will unlock the full long term potential of this asset.
Speaker Change: Okay.
Speaker Change: As part of the Pablo via high expansion, we're developing the L. Lorenzo tailings storage facility, which requires the relocation of nearby communities.
Speaker Change: As already mentioned, we are following IFC performance standard five to God. This process and we're committed to ensuring that people are better off as a result of the relocation.
Speaker Change: The first 18 families have already moved into their new homes, and we're relocating more families every week.
Speaker Change: The new community, which we call new horizons in Spanish.
Speaker Change: As a fully self contained development that includes housing schools recreational facilities potable water electricity roads and space will vegetable gardens and farming to date 220 houses have been complete with a total of over 500.
Speaker Change: And 50 to be finished by the end of the as the development continues on schedule.
Rick: And then Rick <expletive> This project is really taking shape now.
Rick: You can see on the top right of the slide our model of what the project will look like.
Rick: And it's all systems go.
Rick: We began mobilizing the first heavy equipment and we've appointed floor as our lead engineering procurement and construction management partner working alongside the internal owners team and other partners.
Rick: This is a world class copper gold project that will deliver enormous value.
Not just for Barrick.
Rick: But equally for our partners in Pakistan, and particularly in Baluchistan.
Rick: It's one of the largest undeveloped porphyry copper gold systems in the world.
Rick: And it's not yet reflected in our share price.
Rick: While the total phase one and two investment is expected to be around $10 billion.
Rick: Our share of the total equity contribution is estimated between one point full and 1.7 billion for phase one.
Rick: Excluding capitalized financing costs.
Rick: At this stage every everything indicates that we'll be able to fund phase two through.
Rick: Through the project itself.
Rick: It's important to understand that this is very much in line with how we've approached our early stage investments in country like countries lock originally Molly way back in the 19 nineties and the D. R C. More recently disciplined.
Rick: Not betting the farm.
Rick: Phased and with strong partnerships forged ahead of construction.
Rick: On the last point, we have invested roughly $230 million to date without partners in Pakistan participating equally alongside us.
Rick: As disclosed in our financials for everyone tracking this progress.
Rick: While the ratio <expletive>.
Rick: Feasibility study has defined a 37 year reserve life and it's important to understand this is a reserve life.
Rick: Rather than a life of mine.
Rick: Estimate and the real story is the potential to go well beyond that out to the end of the century.
Rick: And this slide shows that even before we started production, we already adding loss and value.
Rick: One of the first new discoveries within the mining lease is just four kilometers north of with the Western porphyry, which is the main ore body that we've got in our life of mine Reserve plan.
Rick: It's called book at plus here and it's a clear indication of the quality and prospective itchy of this region.
Rick: First few holes are delivering thick intervals of mineralization from surface and the numbers speak for themselves.
Rick: And then our Africa and Middle East region that has been a major value contributor to barrick over the past two decades.
Rick: We're seeing some challenges in the broader environment.
Rick: Africa remains however.
Rick: Highly perspective.
Rick: And.
Rick: A good destination.
Rick: To add value to our portfolio.
Rick: One of the few regions regions in the World, where we consistently replace what we mine and we expect the trend to continue this year.
In Mali.
Rick: Operations at Blue Lagoon quota remains suspended.
Rick: But as disclosed in our previous press releases, we continue on gauge them into the transitional government and are working hard to overcome these challenges and achieve a long term solution that puts an end to the current impasse.
Rick: This has been a cornerstone asset for the country.
Rick: And we are committed to finding a constructive way forward.
Rick: On the copper side Lamont has now officially transitioned into the construction phase of its expansion project in.
Rick: <unk> delivered a strong quarter maintaining its momentum.
Rick: At Kibali.
Rick: Production was lower this quarter, mainly due to lower ore grades from underground as scheduled in the mine plan.
Rick: We expect throughput to improve over the course of the year with a stronger second half in line with our guidance.
Rick: Okay.
Rick: We also have an advanced work on the solar power installation, which again will reduce energy costs and further support our sustainability goals importantly, kibali has a track record of replacing the reserves at mines and this year is no different.
Rick: Also worth noting Kibali is trialing, a fleet of EV trucks for Rehan link material on the ROM pad.
Rick: This slide zooms in on the E. R. K K CD, Colorado, and it's worth emphasizing just how important this work as to the future of Kibali.
The team has made great progress not only extending the main K C D ore body down plunge.
Rick: But also on the adjacent alk target, which is a significant brownfields growth opportunity.
Rick: We're seeing high grade intercepts with encouraging continuity and this work is starting to build a coherent geological model across the corridor.
Rick: The key question. We are now testing is whether a RK and K C D connect.
Rick: If that's the case it could represent a material extension of the mineralized system and unlock meaningful new ounces from within the existing footprint.
Rick: In Tanzania, both North Mara and Bouillon, Hulu had solid quarters delivering in line with plan.
Rick: There were some commissioning activity and lower grades at north Mara as scheduled in the mining sequence, but recoveries and efficiencies remain strong and buzz thoughts on.
Rick: On track to meet full year guidance.
Rick: Since 2020, we have both trust stabilize the operations and restored barrick's reputation as a long term partner in the country.
Rick: It's a powerful example of how responsible mining done rot can rebuild the business and create lasting value.
Rick: For all stakeholders.
Rick: Turning to La Manana in Zambia, Q1 production reflected a planned mill re lawn and lower grades as noted in our guidance.
Rick: We expect performance to improve in Q2 and strengthened further in the second half as these temporary factors roll off.
Rick: The Super Pit project will double production and is expected to come in la and <unk> to.
Rick: To come online in 2028, what.
Rick: What are the key focus areas.
Rick: Is power infrastructure as you can imagine and we are actively working to ensure we can manage this challenge as the expansion ramps up.
Rick: The scale and value of La Montana, and the expansion in particular are still not like.
Rick: Like Richard <expletive> reflected in our share price and we believe this project will be a major value driver for the group.
Rick: In the years ahead.
Rick: Africa, and the Middle East continues.
Rick: Continues to be one of our most prospective regions and this slide highlights the breadth of our exploration footprint across the continent.
Rick: We've consistently delivered value health through exploration development and partnerships.
Rick: We well positioned to do so again.
Rick: We are actively exploring across the central African copper belt, including new permits areas in Zambia, and the D. R C as well as advancing Greenfield work in Tanzania.
Rick: Integral and through our joint venture with modern in Saudi Arabia.
Rick: I have always said that the foundation of a real mining company.
Rick: Laws and its reserve base.
Rick: And this slide brings that into sharp focus.
Rick: On the left you can see the growth in our gold reserves per share since the merger.
Rick: And on the rock the gold equivalent reserve base again per share.
Rick: With not which now includes a material increase in copper and reflects the strength.
Rick: All of our broader resource portfolio.
Rick: We are proud that Berry continues to lead the industry in replacing and growing reserves through the drillbit and.
Rick: And not through overpriced M&A.
Rick: Since the merger, we've added 111 million gold equivalent ounces of reserves.
At a cost of just $10 per gold equivalent ounce.
Rick: Compared to M&A deals in the sector, averaging over $440 per ounce and in some cases more than double it.
Rick: It's a disciplined strategy.
Rick: That underpins our growth plans and.
Rick: And reinforces the long term value.
Rick: Of our business.
Rick: So ladies and gentlemen, as we wrap up it's worth highlighting something that really sets <unk> apart in the mining industry.
Rick: Its ability to present, a long term rolling business plan.
Rick: This isn't common in our sector.
Speaker Change: Most companies can only talk in 123 year snapshots, but at Barrick, we give our shareholders a clear roadmap.
Speaker Change: Our long term view of how we intend to deliver production profitability and growth.
Speaker Change: The visibility gives us confidence because it allows us to plan.
Speaker Change: Prioritize and manage our portfolio in a disciplined way.
Speaker Change: We're also showing that overtime our.
Speaker Change: Our ability to replace the gold and copper we mine, while finding more keeps changing that forward profile for the better.
Speaker Change: We are driven by our strategy that invest in the future.
Speaker Change: And as you can see here the significant organic growth bolt into the portfolio through to the end of the decade and as we've shown.
Speaker Change: In our 10 year plan more beyond that.
Speaker Change: Look at what we've already what we already have.
Speaker Change: Nevada Gold mines.
Pablo: Pablo via her.
Pablo: The tier one assets in Africa, all with tangible brownfields upside.
Pablo: Add to that four mile.
Pablo: The la <unk> expansion and the record <expletive> growth project, plus the new project pipeline our exploration team is pursuing.
Pablo: And you begin to see just how much potential is still ahead of us.
Pablo: This is a high quality portfolio.
Pablo: Both by a high quality team.
Pablo: Operating in some of the worlds most prospective regions.
Pablo: So.
Pablo: Barrick.
Pablo: Is as it stands.
Pablo: Standout performer in our industry.
Pablo: It isn't just the quality of our assets.
Pablo: All the strengths of our pipeline.
Pablo: It's the way we build this company.
Pablo: On a strategy grounded in long life tier one assets.
Pablo: Supported by growing copper portfolio.
Pablo: Exceptional growth assets that don't require new debt or share dilution.
Pablo: A disciplined balance sheet continuous reserve replacement in our global exploration engine that's active in every major.
Pablo: Mineral belt.
Pablo: It's also about our people.
Pablo: We've invested in our leaders our teams and our culture.
Pablo: And that's why we are able to operate in the world's most prospective but sometimes more challenging jurisdictions.
Pablo: And do so successfully I might add and sustainably.
Pablo: We are delivering returns today, whilst also building this business for the long term.
Pablo: And we're focused on delivering value for all our stakeholders not just announces or earnings.
Pablo: But in jobs in partnerships and an opportunity.
Pablo: And importantly, we've done all this.
Pablo: Without issuing new equity.
Pablo: On the country.
Pablo: We continue to buyback our shares while investing in growth and strengthening the balance sheet. That's.
Pablo: That's the Barrick difference and that's why we believe the best is yet to come.
Pablo: Thank you all for listening and we'd be happy to take questions.
Speaker Change: I think Florida, we're going to take from her first okay.
Speaker Change: Thanks, Mark This is Ralph proceed from Stifel. Thanks for taking my questions. The first one you had talked about one of the rationales for the sale of <unk>.
Donlin being competing for capital against formal I'm wondering if there's a read through on the valuation and how it pertains to formal because there is a valuation and a market valuation anchor to how you're going to bring four mile into Nevada gold mines and I'm wondering if there's a correlation between the two on valuation.
Speaker Change: No I think it is there's no correlation between the two I think.
Speaker Change: Dominant is way out of the money and and when you look at our development plans. It was way back at the back end of the of our development planning and so it makes sense to us.
Speaker Change: Two to realize that assay it in and focus on the assets that meet our T. L. One definitions and that's really the driver.
Speaker Change: And we saw the value of of Darden in the market is well see it bought in the Nova gold.
Speaker Change: At this stage of the deal the Nova gold market cap. So we.
Speaker Change: That was as close as we could get to a market related value and we were comfortable with it.
Clearly so as Nova Golfs I understood. Thank you and then you did a presentation slide on Kibali and having some of the more our new geology point you to more complex geological structures and I'm just wondering how has.
Speaker Change: How you're now thinking about perhaps changes to the processing side in order to bring that long term potential into the fold.
Speaker Change: Kabbalah has got a really good flow sheet.
Speaker Change: It's a it's got.
Speaker Change: First of all the normal standard gold crushing milling, but then it's got flotation and it's got ultra fine grind so short of any.
Speaker Change: Roasters order claims, which we don't need in that and that one it's got everything so we don't see any change in in the in the metallurgy.
Speaker Change: Of the new deposits, what's interesting is the I R. K.
Speaker Change: Casey D is the first major ore body that we started an open pit and its now being mined.
Speaker Change: Our in depth plunging series of cigar shaped.
Speaker Change: Or bodies and it's the reason they're in cigars is because there's it's tightly folded say the mineralization picks out the hinges in the folds and Casey as Alk is starting to look exactly like that just sub parallel so no difference. It's it's it's associates.
Speaker Change: With banded iron formations that are tightly folded, but the system is and we started to see significant continuity and some particularly high grades because that 3000 low 5000 level of case EDI is what made kibali. So it's a completely new target, but right next door. So and the question is.
Speaker Change: Is it part of the same.
Speaker Change:
Speaker Change: Tectonic or structural event.
Speaker Change: As well as the mineralization event or is it separate.
Speaker Change: We think it's the former.
Speaker Change: And it but it's very different to the other satellite deposits that we've mined in Kibali and we've still got more and that's further away from the processing plant and the and the main mine.
Speaker Change: So it's not complicated it's complicated geologically.
Speaker Change: And in Kibali has always been a challenging geological setting, but we've continued as you know two two we've got double the reserves that we defined in the first feasibility study.
Speaker Change: And we've gone for a long time already.
Speaker Change: Good morning, Mark Brian Macarthur Raymond James.
Speaker Change: Other things you highlighted in the report was how youre getting valued at tailings with software to be used in Nevada, and obviously, there's a huge.
Speaker Change: Benefits from sustainability, but can you just talk about the economics and how that helps.
Speaker Change: The roasters in Nevada, and just how much it might actually be worse, if you're willing to put a number on that.
Speaker Change: So the value is significant.
Speaker Change:
Speaker Change: Just two if we've got two projects lockers at Golden sunlight, which is a closure.
Speaker Change: <unk> sought.
Speaker Change: In Montana.
Speaker Change: And that's been we busy ramping that up it's had a few challenges in getting it fully ramped up but it's it's a it's a it's a re rehabilitation project essentially taking away the requirement for continuous water treatment and at the same time delivering a very valuable.
Speaker Change: Product in the form of sulfide, so sulphide concentrate which is a fuel in both our auto for our auto claims and our roasters.
Speaker Change: So with that knowledge the team in Nevada out of Phoenix.
Speaker Change: Looked at our tailings again full of sulfide.
Speaker Change: And we did the feasibility study and we bolstered concentrated in in Phoenix, and that's going to produce more than golden sunlight not enough to cover all the requirements, but still very significant and.
Speaker Change: Pearl sulfur is very expensive. So you know again, we get rid of our environmental challenge and we deliver low cost fuel for full roasters in order close.
Speaker Change: Yeah, I mean, Henry have you got a view of the court the benefit.
Speaker Change: Maybe a cost of of the Pearl relative to your production costs, assuming the cost of the promos variable but it.
Speaker Change: Right now, we paid about $300 a ton for ton of sulfur and where.
Speaker Change: Using the sulfur concentrate at Phoenix for under delivered to the roster of under $70 per ton. So there is enormous.
Speaker Change: Alright can I just follow up and ask her begs. The question are there other tailings around at other sites in Nevada that you can do this with to add value over time, I get a phoenix at a different stage than some of the others, but I was just curious so I think there's a I mean, one of the things just due to twist your question a little bit further.
Speaker Change: What we are looking at is yep, Nevada has multiple different ore bodies.
Speaker Change: And and and big tailings facilities and so what we are doing is the geology of the project of looking at what other metals are in those tailings, particularly.
Speaker Change: Rare sudden and you know.
Speaker Change: Some of the more critical a minor elements that don't aren't you don't find geologically on the island. So that is a Sunday and certainly we're very comfortable in being able to reprocess tailings dams, if you remember mirilla.
Speaker Change: We mined that Super how body at the end of the mine, we remodeled the tailings dam and continued to make money all the way until we had no more anything left in the tailings dams.
Speaker Change: We've done that before and we constantly look at opportunities to realize that.
Speaker Change: Our big challenge in and in the mining industry at large as we.
Speaker Change: We need to worry more about how we are deposit.
Speaker Change: Uh huh.
Speaker Change: Tailings.
Speaker Change: And in what form because historically.
Speaker Change: The mining industry to create created largest liabilities because of continuous water treatment requirements and the same goes for copper.
Speaker Change: Facilities as well so we are very aware of that and out or.
Speaker Change: Closure team is very focused on where we can exploit does.
Speaker Change: Hidden gems inside of the tailings dam, we will take the vote.
Speaker Change: Thank you.
Speaker Change: Got it.
Speaker Change: So let's move to.
Speaker Change: The call.
Speaker Change: Certainly to join the question queue. You May Press Star then one on your telephone keypad, you'll hear a 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.
Speaker Change: Thanks.
Speaker Change: There's a lot of interesting headlines crazy conversations today and I just wanted to sort of clarify.
Speaker Change: The company's views are now on some items.
Speaker Change: The first question I had was I think Mark you made some comments about gold related M&A here at the top of the cycle being a risk I just wanted to sort of maybe.
Speaker Change: Keep it on the other side.
Speaker Change: On the copper side for M&A would you see there being any cyclical advantage to looking at opportunities today, given where gold prices are relative to copper.
Speaker Change: Yeah, Josh that's a very good question.
Speaker Change: So.
Speaker Change: The challenge we have in copper.
Speaker Change: The opportunity that's driving a very much locked 2011 is this perception that the gold prices just got to keep going up I think from my point of view, there's definitely a base.
Speaker Change: Is developed.
Speaker Change: Developing in the in the gold industry, because one is the demand you couldn't see any.
Speaker Change: <unk> is short term fixes in the global economy. So theres a lot of reason and de Dollarization is has become a reality.
Speaker Change: At the same time.
Speaker Change: We have just recently started to see a higher volatility in the gold price and that's what you would expect that for a while and whether it stabilizes and sets a new base there or it it builds a foundation and continues to grow that's that's the the gazillion dollar question.
Speaker Change: But I think the drivers in the market are very much in trade instant and superficially the the.
Speaker Change: It's sort of dominant political the geopolitical dynamics across the globe are exchange, creating that but there's a fundamental concern around indebtedness across the entire global economy.
Speaker Change: The copper sided slightly different than that.
Speaker Change: And so sorry, just to finish on gold so rising gold prices make all bodies look more profitable or viable.
Speaker Change:
Speaker Change: At the same time.
Speaker Change: People forget about costs and cost inflation, and ultimately writing out of reserves and that's where our industry is today is that we've got very little inventory left ahead of us.
Speaker Change: You know we are constantly buying assets that just a year and a half ago weren't viable and paying a premium for it.
Speaker Change: On the copper side the challenge in copper has been there.
Speaker Change: That the.
Speaker Change: The inventory sitting in particularly the large copper miners as well as the diversified.
Speaker Change: Minors.
Speaker Change: All of such a nature that they not viable certainly havent been viable that the $4 $24 50.
Speaker Change: Pond copper brass and so you've got this inventory, but you've got no investments in capital and in fact, what you've seen is the is the copper industry investing in brownfields extensions.
Speaker Change:
Speaker Change: Accepting higher operating costs, because they can bring that copper production quickly and at lower capital or what what.
Speaker Change: What people talk about today is lower capital intensity in other words.
Speaker Change: Thousands of dollars per producing.
Speaker Change: We'll produce ton.
Speaker Change:
Speaker Change: The challenge is that again, we haven't been exploring and so the supply side of that inventory is not forthcoming and so you need a higher copper price to really unlock it and you need a couple of prostate goes high enough for the industry to be comfortable and will stay there because.
Speaker Change: Building a copper mine takes time, that's what makes Lamont.
Speaker Change: Lamont and Rick addicts, such a stand out set of assets because it makes real returns at $3 copper.
Speaker Change: And and it can comfortably carry the capital requirements to do so.
Speaker Change: And Lamont, particularly he's got a cash flow adjacent to the extra yeah. The second stream that we're building.
Speaker Change: Hmm.
Speaker Change: Whats interesting Oh.
Speaker Change: Unlocked.
Speaker Change: Gold is that recently, despite the global economic outlook, which is very fuzzy at the moment.
Speaker Change: The gold price I mean, the copper process showing some strength that's interesting because we've all recognized all of US, particularly you analysts have recognized that there's a there's a tightening coming in the supply side.
Speaker Change: And so.
Speaker Change: To see this move in copper against is softening.
Speaker Change: I'm sure Global economy is very interesting for us and when we made the decision and took out.
Speaker Change: Our capital plans to our board and shared it with our colleagues in Pakistan.
Speaker Change: We pointed to the fact that this is the best time to bold copper mines, if they all viable at the sort of lower copper prices, because you're bringing the production and at a time when demand picks up and and Josh you are this.
Speaker Change: Probably a little bit before your time, but yeah. That's how we built randgold is we took that big bet. When gold was $260 an ounce and we really focused on every viable assets at that sort of gold price or above we actually used $450.
Speaker Change: And we were able to build three new bonds and capture that big Spike in 20.
Speaker Change: <unk> 2011, and we took data on.
Speaker Change: Which is what we're doing now.
Speaker Change: And we're able to pay it back on the on the on the spark when everyone else was running around.
Speaker Change: Doing M&A, we will pay out APAC and that's pretty much what we've been doing in the last couple of years is really keeping a close on our balance sheet and looking at ways to actually leverage our.
Speaker Change: Per share value through <unk>.
Speaker Change: Investments cash investments rather than premium equity deals.
Speaker Change: That's that would be my answer to that question.
Speaker Change: Got it thank you.
Speaker Change: The other sort of bigger headline today and I'm never sure.
Speaker Change: Journalists and perhaps analysts in some situations are taking liberty, but.
Speaker Change: There was an article talking about a board formalized process to find a successor.
Speaker Change: I understand you're committed to stay until 2028, and I guess I just want to understand.
Speaker Change: You know why would the board be preparing for this three or four years in advance and any sort of commentary on the succession planning.
Speaker Change: So the board and the.
Speaker Change: The succession process is always board overseas, there's always board oversight so to.
Speaker Change: To your point you know everyone is desperate for a story.
Speaker Change:
Speaker Change:
Speaker Change: We've as you know Randgold was very big on succession. It was a process that we worked with our board to two to manage them.
Speaker Change: And and again.
Speaker Change: Yeah.
Speaker Change: Big fixation plans need real consideration and we've been talking about you've been asking about this for a long time and I've been talking about it for a long jobs.
Speaker Change: You know if we if we will we and we've always I've always been very clear about succession and the importance of it so it shouldn't be a surprise to anyone because all of you know me know our philosophy and we look at our we look at we reflect on risk and one of the risks his leadership and we look at.
Speaker Change: Out of our uncontrolled event than a normal managed.
Speaker Change: Transition and that's why we were able to pick up a very challenging business in the form of Barrick from Randgold back in 2019 and be able to spread out and catch most of the issues immediately because we have that deeper succession.
Speaker Change: Plan already in training and and we have our succession works on a 12 month Rolling program, it's a deep into the organization as exec as an executive group. We we have got to know the top 300.
Speaker Change: Potential high Flyers in our organization across all three regions.
Speaker Change: We have that conversation with the board and and we have a executive development program as an integral part of that succession program. So the board is involved so yeah and and let me tell you something Josh.
Speaker Change: Just three years not a long time.
Speaker Change: Not in a business like there.
Speaker Change: Thank you.
Yes, if I can ask just one more question on the operation side.
Speaker Change: Are there any kind of insight you can provide in terms of how <unk> is performing a post first quarter results and and some of the action plans that were taken then thank you yeah. So as you know the big Big step was.
Speaker Change: There are a couple of things with a very big step the big downtime was there.
Speaker Change: Change out of the the.
Speaker Change: The NOL of the satellite and that's a big project and at the same time, we upgraded the.
Speaker Change: Yes pressure cooling and the autoclave and we upgraded some of the big pumps, but it's really about the set land and being able to really pick up on the.
Speaker Change: On the throughput and it's it's it's when we when we expanded we have Sag ball combination in the first phase in the this the the expansion we put in was just a really big.
Speaker Change: The single signal and we are we we weren't clear about.
Speaker Change: How we would whether we needed more acetylene capacity.
Speaker Change: When we installed it very clearly we did so we had to retrofit. It it was an option and so we've done that and so the throughput is now stepped up that Ralph that I've showed you that is on track, it's not we haven't changed anything.
Speaker Change: April was a good good months on throughput.
Speaker Change: Where you know where.
Speaker Change: It's a it's a range as we settle down these throughput.
Speaker Change: Numbers, but we're definitely on average up there at the target for that.
Speaker Change: Bob and weave.
Speaker Change: We're already.
Speaker Change: Achieving in short runs the quota to ball.
Speaker Change: So again, we're comfortable that that installation is going to deliver what we planned and thats what were going to track and share with you as we go and the Big focus now this quarter is stabilized that throughput and with it the recovery.
Speaker Change: Because we expect another 1% improvement in recovery by the time, we get to the end of this quarter and and and and they will keep that recovery in quarter, three and we will have another step up in throughput.
Speaker Change: And then we'll we should see the next step in recovery again, and we Youll recall a couple of quarters ago. We took you through that recovery will continue to step up at for the next six.
Cortez: Cortez, but it's really the throughput that drives their production are the first step up in production, which is what we focused on now.
Darrin Major: The next question is from Darrin major with UBS. Please go ahead.
Darrin Major: Hi, Mark how are you all.
Speaker Change: Yeah first question just on moly.
Speaker Change: I C E consumed around $80 million of cash this quarter negative 64, EBITDA and 14 million of Capex.
Speaker Change: As far as my wife's not been placed on care and maintenance while the negotiations continue.
Speaker Change: How long.
Speaker Change: Are you willing to keep it in this status and can you give US a reminder, on what the care and maintenance cost would.
Speaker Change: It would be if you move to a full care and maintenance scenario.
Speaker Change: So at the moment, we haven't moved to a full care and maintenance scenario, we don't tend to that I mean, it has to be forced to do that.
Speaker Change:
Speaker Change: The.
Speaker Change: I think that and right now we have been.
Speaker Change: Our two independent companies.
Speaker Change: Located in Marty So we've been utilizing there.
Speaker Change: <unk> facilities in country facilities to support their continued.
Speaker Change: Work and they are.
Speaker Change: In a mine like this things as we go into like the rainy season, now we're going to have to manage that and and we want to keep all the.
Speaker Change: Infrastructure operating and are in the underground mines properly dewatered. So that's what we've been doing it at this stage.
Speaker Change: Grandmother, if you want to comment on the holding costs, if we actually closed.
And go into care and maintenance.
Speaker Change:
Speaker Change: The current sort of run rate run rate, Dan is around $15 million a month, but as mark points to you know we used to have all of them stuff them on the payroll.
Speaker Change: We have relocated some of our expense rate stuff elsewhere.
Speaker Change: If we were to go to let's call. It a food care and maintenance scenario, where we were literally just doing skeleton maintenance you could you could expect to half that number.
Speaker Change: Okay, so less than $10 million a month hmm.
Speaker Change: Okay.
Speaker Change: That's clear thanks him personally and then next question just on the portfolio and I think some positive moves in.
Speaker Change: Looking to divest some of the noncore assets down there and let's see if the press commentary around hemlo.
Speaker Change: Any other comments you can make on zaldivar in there that's one the eve you've highlighted before is this process of considering the noncore assets.
Speaker Change: Sharpen the focus on that asset.
Speaker Change: So as all of our we got a we're busy with the renewal of the mining license and and we're making good progress on that and that's really the most important focus for that team. Both on NAND Facusse decided and are people who are involved in that process.
Speaker Change: That's our focus at the moment for Zelda, well I mean ready tongue on is one hemlo as you know on hemlo.
Speaker Change: In 2019, it was already for sale.
Speaker Change: And we what we did is we step pulled it back because it really didn't have a plan.
Speaker Change: And today, what we've done is we had three years of investment into the mine the last two years.
Speaker Change: We've had a step up in our cash flow from the operation. We've we've completed the first run at the open pit.
Speaker Change: Expansion.
Speaker Change: We've got more work to do with drilling at the moment and the underground to be able to work to match the underground reserves at the open pit.
Speaker Change: Production profile and that that will take.
Speaker Change: The it's already got a life of mine. That's 10 years, It's got prospectively, we all we have a bolt additional footprint in the operation and prospectively. It's a it said low production mine relative to our tier one.
Speaker Change: Sort of hurdle.
Speaker Change: But it is it's a it's a good operation that's always had prospectively. It's one of those assets that if you work harder at it continues to deliver we think it'll continue for a while but it's at a stage where it makes it we can defend its viability.
And in it and it will be an attractive asset for a midsized mining company. So.
Speaker Change: And that's the basis on but it's not really is not.
Speaker Change: For for Barrick, and and and and again you have to recall that in 2019.
Speaker Change: When we did the transaction we we immediately once we got everything visible as we cleaned up the portfolio sell KC G. M. So the lagunas Norte de sold our Massawa in West Africa, and we tied up in distributed debt capital gain which everyone always forgets.
Speaker Change: But it was a real return to shareholders.
Speaker Change: And now that we've got real growth, we're looking at a 30% gold equivalent growth out to the end of the decade.
Speaker Change: What happens is and when you clip off the non core very quickly you see how you steepen up that growth curve.
Speaker Change: You certainly take it.
Speaker Change: Allow management to focus on the quality assets it hasn't got fundamental its not a drain on the overall value of the company infected the odds of the valley.
Speaker Change: And so it's a good time to do that and and and and I've always spoken on that basis that we you know.
Speaker Change: Noncore assets are well defined and barrick as our tier one assets in and and we're excited about the next phase in Barrick, because it really does bring real growth and again not too dissimilar to the randgold.
Speaker Change: The situation, which I referred to and in the 2009 2013, when we bolt out Lula tongue on and Kibali together, we ran up quite a lot of debt.
Speaker Change: And then we really delivered that production into a rising gold price and you know it.
Speaker Change: And we funded it all with Dayton and an internal proceeds we didn't issue it.
Speaker Change: Any equity in the construction, we issued a bit of equity.
Speaker Change: If you'll recall in the acquisition of water.
Speaker Change: And but it really added real value per share to the portfolio.
Speaker Change: And we've started today to give you that look sort of the precursor to delivering value per acre.
Speaker Change: <unk> per shares to actually have the reserves per share starting to trend in the right direction and and so you can track that performance going forward.
Speaker Change: Great. Thanks, and maybe I would just put one more in there on the on the portfolio and perhaps a bigger.
Speaker Change: Picture question, but I mean, when I look at it.
Speaker Change: Asset values across.
Speaker Change: The second is it's been a widening gap between.
Speaker Change: Higher jurisdictional risk and lower jurisdictional risk regions and you've previously shine.
Speaker Change: The kind of discounted multiple of for example, the Nevada assets within the bank portfolio.
Internally is is there any discussion about separating the higher and lower jurisdictional risk assets.
Speaker Change: Two to realize.
Speaker Change: It appears to be a trend amongst investors are willing to pay more for.
Speaker Change: Lower risk assets is that an internal discussion at all.
Speaker Change: Let me definitely not so let me just correct you. That's your the this is the Echo chamber that's developed in the market, but what's driving the valuation in the so called law jurisdictions is harvesting.
Speaker Change: If you look at the assets that have really delivered big growth in equity is short term delivery of strong cash flows and no one in the analyst return as he looks at life of mine.
Speaker Change: Just look at the next quarter or the next year and there's a lot of harvesting a lot of dividend flow and that's what the fund managers have been painful.
Speaker Change: And again, if you if you if you look through.
Speaker Change: Back.
Speaker Change: Over the last two decades, the real value comes with long term delivery and.
Speaker Change: And you know I mean already.
Speaker Change: When you look at Barrick's yield it's a it's at the top end of yield and.
Speaker Change: And that's not because we're paying big dividends just because of the equity.
Speaker Change: Cost. So when you bought that equity if you have a long term view you get real returns in and you can look at the.
Speaker Change: The long term life of mine and the growth. If you do you know if you do.
Speaker Change: A simple pro pro pro.
Speaker Change: Cash flow model, you get the Steepening free cash flow very quickly.
Speaker Change: And we and we replacing all the time, so again, when you're not replacing reserves.
Speaker Change: Your your sustaining capital comes off very quickly and it looks good.
Speaker Change: But then you come and most of US in this I mean, some of you have been around less than I have.
Speaker Change: But most of us have been long enough to have experienced what happens when you come off on the production because you haven't got any.
Speaker Change: Alternate and you can buy for so long, but that also runs out.
Speaker Change: And so.
Speaker Change: I would argue very differently.
Speaker Change: It's landing as safe jurisdictions, but it's actually harvesting M&A transactions.
Speaker Change: And and I would.
Speaker Change: Again.
Speaker Change: And and Ah.
Speaker Change: It's worth understanding that if you don't know I'm a big shareholder.
Speaker Change: And I support that there's longer term strategy because ultimately that's what makes real money.
Speaker Change: As an investor and and certainly a big.
Speaker Change: Value investors understand the same story, so and and and and again it makes no sense.
Speaker Change: When you look at.
Speaker Change: You know it was it was the African assets that really allowed us to fix all the neglect in Nevada.
Speaker Change: And and deliver in Nevada, as we see it today and it's worth looking at.
Speaker Change: The profile.
Speaker Change: Of Nevada, when we put the two assets together just a simple profile Youll recall, we showed you that and then look at the life of mine profile today and that comes because of the.
Speaker Change: The broad global spread of of assets and and you'll recall that we've been through some challenging times and and in Nevada on jurisdiction as well in.
Speaker Change: And royalties and things that are no no no.
Speaker Change: No different to some of the challenges we have elsewhere in the world. So.
Speaker Change: So I've always said a world class you know if you want to be World class you need to be global and by the way you've seen this you've seen.
Speaker Change: Just in the short history.
Speaker Change: <unk> seen REO go into Mongolia, you've seen real go into <unk>.
Speaker Change: Guinea.
Speaker Change: You know actively into Guinea after recoup.
Speaker Change: You've seen.
Speaker Change: Newmont bought buy into Papua New Guinea.
Speaker Change: Both going concerns and development projects and Ah and you've seen everyone.
Speaker Change: Focusing in on Central African Republic, because that's where the big copper and other critical minerals set so.
Speaker Change: I think we get hung up sometimes on all confused about.
Speaker Change: Short term harvesting and jurisdiction.
Speaker Change: Great. Thanks, very much okay.
Lawson Winder: The next question is from Lawson Winder with Bank of America Securities. Please go ahead.
Speaker Change: Thank you operator, hi, Mark good morning to you and the team are actually good afternoon now.
Speaker Change: Okay. Okay. So maybe a couple of questions and maybe I'll put up at.
Speaker Change: The two asset ones upfront just to maybe be mindful of time, but you know you talk about long term value in and invest.
Speaker Change: The investments you've made in in.
Speaker Change: Nevada.
Speaker Change: And I think they're very commendable, one asset that really hasnt been emphasized to a large degree, particularly on the copper side is in Phoenix, and then a pretty significant copper portfolio.
Speaker Change: Byproduct, there and when you think about that asset is there some upside to the market is not thinking about with Phoenix and in particular with the U S. Taking a look at some of these are strategic assets that have copper things like the fast 41 list. So that'd be one and then second would just be on the goldstrike roaster, how many days were actually lost to the planned maintenance.
Speaker Change: To the.
Speaker Change: Maintenance at the Goldstrike roaster in Q1 and.
Speaker Change: Yeah just.
Speaker Change: Are there any other major planned.
Speaker Change: Roaster or autoclave maintenance.
Speaker Change: This year in 2025.
Speaker Change: Okay.
Speaker Change: In our Phoenix just to answer that.
Speaker Change: It's now a very much a focus is understanding the full potential of Phoenix, because remember Phoenix has always been run as a gold mine, taking the copper credits.
Speaker Change: But there's definitely potential.
Speaker Change: Potential at Phoenix.
Speaker Change: A porphyry potential there's a we have defined targets within Phoenix that we're currently evaluating it's relatively early days, but Phoenix is is a different business today than it was back in 2019 and and in the fullness of time ultimate.
Speaker Change: Italy, It is a real resource.
Speaker Change: We haven't really.
Lawson Winder: Push the envelope on conversion, yet because we really understanding the geology, but to your point, it's good observation Lawson.
Speaker Change: On the shutdown I will give you a broad give hard reason in the audience here and he can help.
Speaker Change: Help with a detail, but but really there were two big shots back to back the goldstrike Roaster and then followed in.
Speaker Change: In April with the gold quarry roaster and that sets us up.
Speaker Change: So we are guiding and improved production in.
Speaker Change: And Collyn.
Speaker Change: And Nevada generally in quarter, two and again, a better second half than the first half of the year and that's because of our focus on getting those maintenance schedules behind us and Hunter you. If you don't mind, adding that sort of timing, yes. So the goldstrike roaster was planned down for 'twenty.
Speaker Change: One days and it was up after 'twenty.
Speaker Change: The goldstrike I'm, sorry gold quarry Roaster went down for 28 days as planned in April and then for the auto claims the Sage autoclave at D. R. We think each autoclave seemed down individually. So the plant stays running at 50% capacity, but the whole plant that go down for seven days as planned while the first thing.
Speaker Change: As of the first quarter trade was down in the next one will go down in September for planned maintenance job and Lewis and I would just add to that.
Speaker Change: Ah We're told me about it yesterday actually is the level of planned maintenance has really shifted to Henry's point about bringing down order claims just to check the break.
Speaker Change: Competence.
Speaker Change: And as for the first time, we are actually shifting.
Speaker Change: The the.
Speaker Change: Majority of downtime and planned maintenance. So the order claims we were taking down just to ensure that the integrity of the breaks on good shape and bringing them up again, so that we don't wait until that bus.
Speaker Change: And and so we're in a much better place as far as planned maintenance goes that's why we have a lot more comfortable being able to manage out got it.
Speaker Change: Yes, great for that thank you.
Speaker Change: Can I also ask you about the intended use of proceeds for the dunlin cash that you'll be receiving hopefully hopefully shortly.
Yeah. So.
Speaker Change: Our use of our capital allocation is very clear and and again, if you've followed me through my career, we stick to.
Speaker Change: Our plan so.
Speaker Change: So we've got a.
Speaker Change: We've got we'd like to keep the balance sheet.
Speaker Change: Very healthy because we're going into this capital.
Speaker Change: Phase and and you know the world is in a.
Speaker Change: Sort of.
Speaker Change: Dynamic.
Speaker Change: Fair to say the least.
Speaker Change: And so the way we manage it is.
Speaker Change: Is that if we are.
Speaker Change: We've got our ability to allocate and bring down the debt Tibet.
Speaker Change: When we get it between the.
Speaker Change:
Speaker Change: Zero net debt and 500 million positive cash we pay a special dividend.
Speaker Change: And the way to manage that also as a share buybacks and we are mindful as we as you've seen us doing a very considered share buyback strategy as we as we and as we lean into our rationalizing some of our productive assets. It's good to use some.
Speaker Change: Of the Donlin cashed to two.
Speaker Change: Buyback the stock and and the best investment we can do right now it is accretive on every metrics is buy our stock so.
Speaker Change: That makes sense at the same time, we recognize the importance of rewarding our.
Speaker Change: Shareholders with some.
Speaker Change: Some additional dividend and so that's the sort of.
Speaker Change: That's the way Graham and off of thinking about it.
Speaker Change: The way the board has guided us in and managing this balance sheet and we'll continue to do it that way.
Speaker Change: Thank you very much and then just when you think about re domicile ing potentially re domicile to the U S are.
Speaker Change: There is the cost of losing the net operating loss tax benefit.
Speaker Change: What are the benefits you're seeing that would justify considering such a mill so.
Speaker Change: Point is.
I guess I would underline your point about considering.
Speaker Change: Consideration to this has been an ongoing affair going back to even Peter amongst days you remember they used to call Barrick American Barrick.
Speaker Change: So.
Speaker Change: I think let's not get ahead of ourselves at this stage.
Speaker Change: Right now the.
Speaker Change: I think the structure is well structured what are the.
Speaker Change: Issues is that.
Speaker Change: The U S assets are.
Speaker Change: Not efficiently held in the corporate structure and it can be done better.
Speaker Change: And then again on the on the accumulated losses and.
Speaker Change: And we've got both operation operating and capital losses. Those are always available. So we're not we're not planning to sort of do away with them at all we you know we are always looking at ways to use them. If we can and so they will be considered in the in the overall.
Ongoing.
Speaker Change:
Speaker Change: No debate and that's really where we are.
Speaker Change: At this stage I think Oh.
Speaker Change: <unk>.
Speaker Change: One particular.
Speaker Change: Canadian paper got ahead of themselves on.
Speaker Change: Rushing out a story.
Speaker Change: But you know it's been a as I say to that paper.
Speaker Change: We it's something we consider all the time that's it.
Speaker Change: Regular debates and our board at least on an annual basis, and we'll continue to look at it.
Speaker Change: Opportunities isn't it needs.
Speaker Change: It needs it needs a logic to drive it.
Speaker Change: That's the Big challenge.
Speaker Change: Fantastic. Thank you.
Speaker Change: The next question is from Tanya <unk> connect with Scotia Bank. Please go ahead.
Speaker Change: Good afternoon, everybody. Thank you so much my three question.
Speaker Change: And Mike can I start on the noncore assets.
Speaker Change: But on the block and I look through your portfolio I think on a previous conference call. You had mentioned about Val defined congonhas being non core.
Speaker Change: Latest pascua Lama and not blacked out within that portfolio.
Speaker Change: So.
Speaker Change: So tongue on as you know as far down the road on the process of of realization. So where we are now we've started that process a while back it's in the process.
Speaker Change: And and Hemlo is just starting.
Speaker Change: Pascal is a.
Speaker Change: Right now, we've just applied for drilling permits.
Speaker Change: To evaluate the.
Speaker Change: Preliminary economic assessment, we referred to a while back.
Speaker Change: On Pascua, it's an integral part of la.
Speaker Change: Llama as you know.
Speaker Change: And always has been and more importantly, we've we've sort of stepped back and looked at it.
Speaker Change: With with brought a zoomed out and brought valid ore into that.
Speaker Change: That's sort of picture and and so it's got a bit of work to do before we get to the stage that this makes sense to.
Speaker Change: Two two.
Speaker Change: Find it as a noncore asset.
Speaker Change: And we're currently drilling targets adjacent to valid era, whose value Dara, we've really transitioned to a good place at the moment and and as I say, we were just made the first we've completed the the community consultation.
Speaker Change: And we've just launched the initial notice on.
Speaker Change: Applying for drilling.
Speaker Change: Permits in within <unk>.
Speaker Change: Task, while armour, we call it L. Alta now Tanya.
Speaker Change: Okay.
Speaker Change: Knox as Blackstone and other down there that was potential sales sorry.
Speaker Change: And the rest of them are some of the other assets.
Speaker Change: M D.
Speaker Change: We've realized most of L. India. We've we are alturas is in a process at the moment I think it's L tourists the Chile one.
No.
Speaker Change: No no, but I'll be out as a as currently we are busy with newmont on a pre feasibility study we're doing a study on it.
Speaker Change: You know, it's ongoing and we will wait for the results of that study.
Speaker Change: Okay, and then if I could come back and my second question is on the succession planning and again from that in the article in the financial times.
Speaker Change: And that is a more formal process now.
Speaker Change: I guess the way you answered.
Speaker Change: Our normal board process, so that that way and then commitment that success.
Speaker Change: Succession planning.
Speaker Change: Our yearly.
Speaker Change: Yeah, I think the I mean remember we went through this process in Randgold resources.
Speaker Change: And you know what.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Tanya I spoke to the the reported that you're referring to so.
Speaker Change: You should take my word for it rather than the reported.
Speaker Change: Yeah, No no that's fine.
Speaker Change: Just trying to understand it.
Speaker Change: I have spoken about it makes sense to develop people skills we've got.
Speaker Change: Very structured.
Speaker Change: Succession plan and and as we get closer to the end of the decade or the completion of.
Speaker Change: Of.
Speaker Change: Rick Adecco bus.
You will see in a more formal process image it makes sense.
Speaker Change: Okay and then my last question.
Speaker Change: Sure.
Speaker Change: Really what happened.
Speaker Change: Where are we I know negotiations continue but maybe some visibility.
Speaker Change: Are there any timelines that not timelines on any next steps that we should be looking at or what are your next steps.
Speaker Change: You know I think the we've reached agreement.
Speaker Change: Three times with the Marlins early for them to walk back the agreement so.
Speaker Change:
Speaker Change: And we're very clear about you know.
Speaker Change: We've got a process that has commenced within the.
Speaker Change: Exit arbitration.
Speaker Change: Provisions and that's just to be clear is based and founded on the agreement that we have.
Speaker Change: And what is the appropriate dispute resolution mechanism and we've agreed it and we've used it before there's precedent for it and and we would like to believe that that's the focus and and right now I can confirm that Molly is participating in that process, but at the same time as we've always.
Speaker Change: It is done through the last Cup.
Speaker Change: A couple of decades is it's better too and I had this conversation as a member of the junta.
Speaker Change: Just over a year ago and he agreed that.
Speaker Change: It's always better to have a negotiated settlement then the badly run.
Speaker Change: Legal fought.
Speaker Change: And so you know I'd like to believe that way I mean, what I can tell you is we still very much engaged and where as we've always done it.
Speaker Change: And Tanya it's a it's the same situation remember we found ourselves in after the transaction.
Speaker Change: In 2019 that Tanzania was closed Pakistan was Nationalised, Papua New Guinea hadn't had its permit renewed it was yeah.
Speaker Change: A couple of real challenging them.
Speaker Change: Situations, which we have diligently worked our way through and and delivered.
Speaker Change: A significant results out of that and our new partnership and.
Speaker Change: It is more challenging in Mali, because you're dealing with a.
Speaker Change: With Ah.
Speaker Change: Fourth a change and.
Speaker Change:
Speaker Change: And and and and one of the Big challenges is this is the lack of professional advice on on the Mali side, which would help a lot if we could sit around a table and really unpack the numbers.
Speaker Change: And the thing that really so I guess my attention and and is the the fact that we've got the unnecessary retention of our executive for values negative teas, which is completely unacceptable.
Speaker Change: And so you know, we're very mindful that where we need to.
Speaker Change: Work on this diligently and in that we need to find a lasting solution with the with proper due process and the protection of our rights and that's what we manage it.
Speaker Change: Yeah.
Speaker Change: Remind me about the arbitration.
Speaker Change: The houses.
Speaker Change: Fran I guess it's.
Speaker Change: It's a it's an exit process.
Speaker Change: Exactly where the actual arbitration a committee will will land is it something that the proceeds will define going forward.
Speaker Change: But it's a will bank exit program.
Speaker Change: Okay.
Speaker Change: Okay. Thank you and good luck. Thank you.
Speaker Change: The next question is from Joshua Bell Resi Associates. Please go ahead.
Josh Wilson: Yes, good afternoon, Mark how are you Josh I'm very well thank you.
Speaker Change: Good I have two questions. The first relates to your cost structure I love your ownership orientation I loved the Barrick Academy.
Josh Wilson: And I'm looking at you know.
Josh Wilson: How you how you train people and how you manage costs and I was comparing barracks.
Josh Wilson: Projected all in sustaining cost for the for the year versus agnico.
Josh Wilson: And you're about $300.
Josh Wilson: It was higher.
Josh Wilson: And could you give a little bit of color on what the main factors are that you think drive those higher costs and whether it's a short term thing that will converge over time or whether it's because you're.
Josh Wilson: All over the world and there are more concentrated in any jurisdiction.
Josh Wilson: <unk>.
Josh Wilson: But love to get your thoughts about that to understand that.
Speaker Change: And the second.
Speaker Change: And the second one really relates to.
Speaker Change: You know the excitement I feel for this for the industry and your company with.
Speaker Change: You look at the midpoint of your production and all in sustaining cost guidance for 25 and.
Speaker Change: If you if you take the run rate.
Speaker Change: Kurt.
Speaker Change: Gold price.
Speaker Change: It's about a 1900 an ounce.
Speaker Change: Pre tax margin and I wanted to just kind of confirm that I'm thinking the right way and that kind of you know over a 12 month basis. If this is sustained and we don't know if it will be.
Speaker Change: That's about a $6 3 billion pretax earnings.
Speaker Change: Run rate over 12 months and.
Speaker Change: You know you you clarified how you would prioritize the use of the money.
But I wanted to ask you on top of that if there was another exciting project. Besides for mild but if you had this kind of excess money, whether you would you would do your priorities a little bit different and maybe do something more in Canada or somewhere else.
Speaker Change: With the funds or just stick to the special dividend and the buyback.
Speaker Change: Josh I would I'll start at the second one I'll take you back to 2011 to 2015.
Speaker Change: When people used to complain that Randgold was X growth.
Speaker Change: Because all we were doing was growing cash flow.
Speaker Change: And it went on all the way to 2015 when.
Speaker Change: Barrick was the most valued gold company.
Speaker Change: On the planet.
Speaker Change: And so the growth comes in many different facets and.
Speaker Change: And the most exciting one is when you're when you've got long term growth sustainability and you grow your profits you grow your cash that so.
Speaker Change: You I mean is if you look at if you take if you take today's spot.
Speaker Change: Which is difficult to do because remember theres a cost in it.
And and and these cost change in an environment like we're dealing with today are they still going to come through but if you take today's revenue sard <unk>.
Speaker Change: Youre, absolutely right and in fact, if the cost profile that we've got today stays.
Speaker Change: We won't go into that at all.
Speaker Change: And we will grow revenues and of course, what we have shown is that we don't lurched from one M&A transaction to another but we are consistently investing in our future, which eventually pays off.
Speaker Change: On the on the actual cost and.
Speaker Change: And Agnico Eagle.
Speaker Change: The one thing that everyone misses and I would.
Speaker Change: Strongly recommend you do is just plucked.
Speaker Change: The depreciation of the Canadian dollar and the Australian dollar versus the.
Speaker Change: The U S dollar because the U S dollar as the benchmark and inflation headline inflation in U S dollars, Israel and Theres no depreciation of our currency, so and that is depending on the rate, where you look to going backwards, but it's around 10 per.
Speaker Change: St.
Speaker Change: And.
Speaker Change: The Australian dollars are a bit more.
Speaker Change: It is significantly larger than that so then you look at our forecast.
Speaker Change: Cash flow I mean, sorry, all in sustaining costs and total cash cost because we run our business on both them out to the end of the year, we're well within that range and when you adjust for depreciation when we're talking specifically Agnieszka <unk>.
Speaker Change: But at the same time, we're not harvesting a transaction, we're investing in our future. So.
Speaker Change: Fixing up some of the challenges in Nevada.
Speaker Change: And and and the same with our program and the same with Tanzania, and and is it. We showed you at the Investor day that we are running about $150 or even a little bit more.
Speaker Change: On a per.
Speaker Change: I mean shove back to this position on a on a per ounce basis.
Speaker Change: Above what our normal sustaining capital is.
Speaker Change: And so and we've shown how why and we've particularly in Nevada.
Speaker Change: There was a cigna.
Speaker Change: Significant neglect and planned maintenance. So we've had a catch up on the planned maintenance and we have.
Speaker Change: Our costs, because we've rolled out.
The reserves and the life of mines organically rather than buying them.
Speaker Change: And that comes with a cost because we.
Speaker Change: We've scheduled an additional 110.
Speaker Change: Million ounces.
Speaker Change:
Speaker Change: In and reserves and Thats gold equivalent so copper and gold lots of bond schedules and that comes as an additional cost on on the on the on the on the cost side. It does come down as we've pointed to and the way. It comes down is how so.
Speaker Change: So all we and replacing enrolling.
Our plans forward because that dampens that decline and an all in sustaining costs, we do get some benefit of currencies, but most of our operations.
Speaker Change: Operations around the world our database there not because we don't operate in.
Speaker Change: Delivery of big ounces in Canada, or not and definitely not in Australia. So.
Speaker Change: So it is it's not you can't compare apples with.
Speaker Change: With pace.
Speaker Change: And that's really the driver I see grandma's to add to that.
Speaker Change: And yet I.
Speaker Change: I think you've covered it well mark the only other point I would make is obviously it all.
Speaker Change: Forecast production is increasing over the next few years.
Speaker Change: Production goes up we expect our costs to come down.
Speaker Change: So we will convert as well this is enormously helpful and thanks.
Speaker Change: For just your great stewardship, the quality of these calls is amazing.
Speaker Change: Thank you for that gesture and as you know we are always available if you call him to the team to help you get those muddles clear.
Speaker Change: Very much appreciate it.
Speaker Change: And the last.
Speaker Change: Question is from John Tumazos with John Tumazos, very independent research. Please go ahead.
Speaker Change: Thank you.
Speaker Change: Did you.
Explain the organizational benefits.
Speaker Change: You shouldn't profile without on loan and potentially Tom.
Speaker Change: Tom.
Speaker Change: So D var.
Speaker Change: Maybe you save $2 million a months ago exploration cost was asked online.
Speaker Change: You free up exploration personnel.
Speaker Change: Admin resources, maybe reclamation personnel down the road that goes through my order months.
Speaker Change: So I'm not sure life easier.
Speaker Change: So the the John Nice to hear your voice and as usual, we'll use the last but not least in the in the lab.
Speaker Change:
Speaker Change: What what you know one of the things I've always done is we don't we don't increase our exploration budget was.
Speaker Change: With an increasing gold price or decreasing oil prices, we're very clear about we have one number.
Speaker Change: The between the mineral resource management, all brownfields teams and the exploration teams.
Speaker Change: They they have to compete for those.
Speaker Change: And so what it does is keep us very focused on the quality of our portfolio and over the last cut.
Speaker Change: A couple of years for years, we've really tidied up our exploration team.
Speaker Change: As you've heard the last the ramp of the El Indio in some of the other.
Speaker Change: Exploration.
Speaker Change: Projects that have been around for decades have now closed all or doubts.
Speaker Change: And we've got a new portfolio of targets much more focused so what.
Speaker Change: And we know.
Speaker Change: Darden and has its own team, we managed the process all Christine and her team.
Speaker Change: Along with the Nova Golf group.
Speaker Change:
Speaker Change: And what it does is it together I think christine's looking forward to having more time.
Speaker Change: To focus on North America, and and and a portfolio of opportunities then.
Speaker Change: No.
Speaker Change: B up there in Alaska, So that's a big.
Speaker Change: Release of.
Speaker Change: Executive Tom and the same.
Speaker Change: Tongue on again, you know, we we will sell the asset with the.
Speaker Change: With the team that runs demand as you know we are diverse diverse now and then flatten our structures of mines have a full management team.
Speaker Change: So anyone buying it gets that team if they want it and.
Speaker Change: We are.
Speaker Change: Planning to continue I exploration efforts and in Africa, We've got some interesting new projects there on the other side of the country from Taiwan.
Speaker Change: And and we have some.
Real focused work generative work and in Chile, which will continue to focus on and we've got emerging projects both in Peru.
Speaker Change: Talking about Argentina, and some new ones in Ecuador, So we've got lots to keep us busy with I think the it's the management time, the executive Tom that these smaller assets that are high costs and that's something I haven't touched on is.
Speaker Change: Yeah. These are these assets, where we're disposing of them all at the high cost of the end of our portfolio and so.
Speaker Change: Yeah, we will be bringing the costs down without really changing the production profile much.
Speaker Change: I hope that helps.
Speaker Change: Thank you.
Speaker Change: That's it.
Speaker Change: They currently are no further questions in the conference call.
Speaker Change: Thank you can we wrap up thank you very much everyone. Thank you those on the line for taking the time I know, it's been a busy day with multiple.
Speaker Change: Presentations and I appreciate those who actually made the time to come in and visit for those who I have got.
Speaker Change: Some snacks and you can catch up with the team next door. So.
Speaker Change: So feel free to stay on thank you again, and we'll be speaking to most of you I think maybe in <unk>.
Speaker Change: Barcelona next week.
Speaker Change: Yes.
Speaker Change: This concludes today's event should you have additional questions. Please contact the barrick investor relation team.
Speaker Change: You may disconnect. Your lines. Thank you for participating and have a pleasant day.