Q1 2025 Barrick Gold Corp Earnings Call
John Tumazos, John Tumazos, John Tumazos, John Tumazos
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[inaudible] John Tumazos, John Tumazos, John Tumazos, John Tumazos,
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. If you have a question and are joining the event by telephone, please press the star key on your star than one on your telephone keypad, you will be taking questions from the room first. Thank you very much.
Speaker Change: As a reminder, this event is being recorded, and a replay will be available on Derrick's website later today, May the 7th, 2025. I would now like to turn you over to Mark Bristow, President and CEO of Barrick. Please go ahead, sir.
Thank you very much and...
Speaker Change: Good morning ladies and gentlemen and particularly the folk that have made an effort to get here this morning. Thank you for joining us today.
Speaker Change: is a lot happening as you are well aware in the world right now, volatility and stability and shifting global priorities.
Speaker Change: While we are always ready to take advantage of our gold prices, we remain focused on building a business.
Speaker Change: that can deliver sustainable profitability over the long term through the cycles.
Food Challenges
and Three Change.
Speaker Change: Just over six years ago, we set out to reposition and rebuild Barrack as the world's most valued
One that creates real long-term value, not just for investors. [inaudible]
but for every stakeholder we work with. [inaudible]
This past quarter was another busy one.
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 and exploration.
supported by a growing crop of business. [inaudible]
Speaker Change: Before we begin, as usual, I'd like to draw your attention.
Speaker Change: which you can review at your leisure, if you shall wish.
Moving now to the group highlights.
I'm pleased to show you another positive set of results.
Speaker Change: with all the arrows once again pointing in the right direction.
Speaker Change: We have maintained the dividend at $0.10 per share, reduced debt and continued with our share by that program.
Speaker Change: We've also announced the $1 billion sale of Donlin' the first step in rationalising our portfolio to focus on the squarely on our tier 1 assets.
Speaker Change: and across the business our growth projects continue to gain momentum. With Pablo Viejo ramping up former moving to pre- feasibility, LeMona and Riccadec moving to construction and a new discovery already within the Riccadec mining lease.
Heading to operational results during the quarter.
Speaker Change: We completed significant projects at Pablo Viejo, Nevada Goldmines and Lamona, positioning 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 by all measures, this was a solid quarter, reflecting the strength and resilience of the business we have bought.
Speaker Change: On a year and year basis, despite the temporary shutdown of Lula Goncotto and the previously mentioned maintenance work, we delivered significant growth in operating cash flow, free cash flow and earnings all supported by a higher bulk price, of course.
Speaker Change: I'll point you to our Realized Gold Prize in Quarter One, which already looks conservative given where the spot process today.
Speaker Change: Capital is tracking in line with our plans with growth capital expected to increase over the year as our two major construction projects ramp up their activity.
Speaker Change: Sustainability, as I'm sure you're all aware by now, remains the cornerstone of how we operate.
It's not separate from our business. 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 sites.
Speaker Change: This quarter we made strong progress on our journey to zero.
with a big focus on managing by walking about. What?
Speaker Change: We completed over 31,000 critical control verifications across the group, reinforcing leadership visibility and real-time risk management.
Speaker Change: We recorded improvements in the last time injury frequency rate and total recordable injury frequency rate.
and very importantly our class three events were done.
Matarine,
Speaker Change: At Ricodec, we secured environmental permits and both the Asian Development Bank and the International Finance Corporation have publicly disclosed the intended participation in Ricodec financing.
Speaker Change: At PV, the first families have moved into new homes under our resettlement program which is founded by the IFC Performance Standard V.
We've also rolled out our social metric tracker.
Speaker Change: Align to the UN Sustainable Development Goals to track real impact at the site level.
Speaker Change: So, moving to North America and operations there, this remains Barrick's value foundation and continues to perform steadily.
We've taken clear steps this quarter to sharpen our portfolio.
as I indicated already.
Speaker Change: Dunlund Sale is an important move aligned with our strategy to focus on Tier 1 assets.
Speaker Change: In line with that we have also launched a process to test the market for Himmler.
Speaker Change: Let me be clear to everyone out today particularly, this is no bearing on our commitment to Canada.
Speaker Change: On the country, we've launched a significant drill program in the Southern Abertibi, which I will discuss later.
Speaker Change: We are also exploring in the US, in Nevada, both within the Joint Venture and on Barrick Ground.
as well as in Arizona, Idaho, and Montana. [inaudible]
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 in line with our investment in people, we've now rolled up the Barrick Academy.
at Nevada Gold Mines.
Speaker Change: giving frontline leaders the tools to drive performance, improve safety and build operational
Speaker Change: Turning to Nevada Gold Mine specifically, we had a solid quarter, although production was lower on the back of planned roaster maintenance at Column.
Speaker Change: from the New Komatsu Open Pit Fleet, and Organizational Optimization, which is already driving mining unit cost back down to levels we haven't seen since 2022.
Speaker Change: at Tercois Ridge, throughput increased, quarter on quarter, at the Sage AutoClave, the lower grades offset the volume gains.
Still, recovery performance was strong, helping support overall resolve. [inaudible]
Speaker Change: During April , April we also completed the planned Gold Quarry Roaster shutdown.
Speaker Change: So with the major maintenance behind us in Nevada gold mines, we're well set for an improved quarter to and a better second half.
Moving to four miles.
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 turning with drill holes averaging over a kilometre in depth.
Speaker Change: As we've already disclosed, grades that 4 mile are more than double those at Gold Rush.
Speaker Change: , which can potentially support larger scale stoping than that of our 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: and evaluating the geometry of the body and access options.
All of which are critical for future development. [inaudible]
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 bodies, located in a jurisdiction with multiple tier one assets, it's clear that formal has the potential to deliver unparalleled value for Barrick and Nevada.
It also explains why we chose to divest Donlin. [inaudible]
Speaker Change: and I said that was not in a position to compete with four mile for capital in our portfolio.
Speaker Change: Keniza, as I said earlier, remains a call destination for us.
and we're fully committed to growing our presence here.
Speaker Change: As you can imagine, it's a highly competitive environment, especially with the recent uplift in goal process.
Speaker Change: But we're 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 continue to progress and evaluate other project opportunities.
Speaker Change: Williams, we're also busy with the permitting for the next draw phase at the Sturgeon Lake project.
Speaker Change: Shifting to Latin America and Asia Pacific, we've seen stellar performance across the board this quarter.
Our Signature Growth Project, Pablo Verro, made solid progress.
Speaker Change: Rick Adek, as I mentioned earlier, has officially moved into construction phase, and is already showing an exciting early indicator of upside that comes with T-O-1 assets.
Speaker Change: Validera delivered a standout performance yet again, and development of phase 8a of the Elite Fad is on track, and the mine is set up for another strong year.
Speaker Change: Moving specifically to Prabhavir Ho, this is a long-life operation with a planned mind-life of over 20 years. And once the ramp up is complete, we're targeting production of more than 800,000 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, diesel pump upgrades and a complete overhaul of the Ciccunae Central L.
Speaker Change: and the team continues to make good progress under our go-for-goal plan.
Speaker Change: This slide shows the key components of our expansion and ramp-up program at Pueblo Viejo and as you can see we're on track and all major projects for the quarter were completed as planned.
Speaker Change: As part of the public vehicle expansion, we're developing the El Narendjo Tailing Storage Facility, which requires the relocation of nearby communities.
Speaker Change: As already mentioned, we are following IFC Performance Standard 5 to guide this process and we are committed to ensuring that people are better off as a result of the relocation.
the new community which we call New Horizons in Spanish
Speaker Change: is a fully self-contained development that includes housing, schools, recreational facilities, portable water, electricity, roads and space for vegetable gardens and farming.
Speaker Change: Today's 220 houses have been complete with a total of over 550 to be finished by the end of the year as the development continues on schedule.
Speaker Change: and Edgar <expletive> , this project is ready taking shape now.
Speaker Change: You can see on the top right of the slide a model of what the project will look like [inaudible]
and its old systems go.
Speaker Change: We've begun mobilizing the first heavy equipment and we've appointed Fleur as our lead engineering procurement and construction management partner.
working alongside the internal owners team and other partners. [inaudible]
Speaker Change: This is a world-class copper gold project that will deliver enormous value.
Speaker Change: Not just for Barrick, but equally for our partners in Pakistan and particularly in Balochistan.
Speaker Change: It's one of the largest undeveloped poor free copper gold systems in the world. [inaudible]
and it's not yet reflected in our show for us.
Speaker Change: At this stage, everything indicates that we'll be able to fund phase two through the project itself.
Speaker Change: It's important to understand that this is very much in line with how we've approached our early stage investments in countries like originally Mali, way back in the 1990s and the DRC more recently.
phased and with strong partnerships forged ahead of construction.
As disclosed in our financials for everyone tracking this progress.
Waller, Rickard <expletive> ,
Speaker Change: 37-year reserve laugh, and it's important to understand this is a reserve laugh . . . . . . . . . . . .
Laugh of mine
Speaker Change: Estimate, and the real story is a potential to go well beyond that, out to the end of the century.
Speaker Change: And this slide shows that even before we've started production, we are already adding last and value.
Speaker Change: One of the first new discoveries within the mining lease is just four kilometres north of the western Porphyse, which is the main orbite that we've got in our laugh of mine, Reserve Plan.
Speaker Change: It's called Book at Pasey and it's a clear indication of the quality and prospectivity of this region.
Speaker Change: The first few holes are delivering thick intervals of mineralisation from surface and the numbers speak for themselves.
Speaker Change: In our Africa and Middle East region, that has been a major value contributor to Barrick over the past two decades.
We're seeing some challenges in the broader environment.
Speaker Change: Africa remains, however, a highly prospective and a good destination to add value to our portfolio.
In Mali
Operations at Lulogon Kotter, remain suspended.
Speaker Change: But as disclosed in our previous press releases, we continue our engagement with the Transitional Government and our working hard to overcome these challenges and achieve a long-term solution that puts an end to the current impulse.
Speaker Change: This has been a cornerstone asset for the country and we are committed to finding a constructive way forward.
Speaker Change: On the copper side, Lamona has now officially transitioned into the construction phase of its expansion project.
and Jabalsai delivered a strong quarter maintaining its momentum. [inaudible]
At Kabali,
Speaker Change: Production was lower this quarter, mainly due to lower all grades from underground, as scheduled in the mind plan.
Speaker Change: We expect through what to improve over the course of the year with the stronger second half in line with our guidance.
Speaker Change: We also have an advanced work on the solar power installation which again will reduce energy costs and further support our sustainability goals.
Speaker Change: Importantly, Cabali has a track record of replacing the reserves at mines and this year is no different.
Speaker Change: also worth noting Kabali is trialling a fleet of EV trucks. [inaudible]
for rehandling material on the rompad. [inaudible]
Speaker Change: This slide zooms in on the ARK KCD corridor, and it's worth emphasizing just how important this work is to the future of Kebali.
Speaker Change: The team has made great progress, not only extending the main KCD or body down plunge, but also on the adjacent ARK target, which is a significant brownfield's growth opportunity.
Speaker Change: We're seeing high-grade intercepts with encouraging continuity and this work is starting to build a coherent geological model across the corridor.
Speaker Change: The key question we are now testing is whether ARK and KCD connect.
If that's the case, [inaudible]
Speaker Change: In Tanzania, both North Mara and Bullion Hulu had solid quarters, delivering in line a plan.
Speaker Change: There was some commissioning activity and lower grades at North Mara as scheduled in the mining sequence but recoveries and efficiencies remain strong and both are on track to meet full year guidance.
Speaker Change: Since 2020, we have built trust, stabilise the operations and restored Barrick's reputation as a long-term partner in the country.
Speaker Change: It's a powerful example of how responsible mining, done right, can rebuild the business and create lasting value for all stakeholders.
Speaker Change: Turning to Lemwana and Zambia, Q1 production reflected a planned Mulrilan and low grades as noted in our gardens.
Speaker Change: We expect performance to improve in Q2 and strengthen further in the second half as these temporary factors roll off.
Speaker Change: The Super Project will double production and as expected is a common line to come online in 2028.
One of the key focus areas. . .
Speaker Change: is Power Infrastructure as you can imagine, and we're actively working to ensure we can manage this challenge as the expansion ramps up.
Speaker Change: Lack Rickardick reflected in our share price, and we believe this project will be a major value driver for the group in the years ahead.
African and the Middle East,
We've consistently delivered value here through exploration, development and partnerships.
We are actively exploring across the Central African Copper Belt, [inaudible]
Speaker Change: I have always said that the foundation of a real mining company lies in its reserve base.
and this slide brings that into sharp focus.
Speaker Change: On the left you can see the growth in our gold reserves per share since the merger.
Speaker Change: and on the right the gold equivalent reserve base again per share.
Speaker Change: with Na which Na includes a material increase in copper and reflects the strength of our broader resource portfolio.
Speaker Change: We're proud that Barrick continues to lead the industry in replacing and growing reserves through the
and not through overpriced M&A.
Speaker Change: Since the merger, we've added 111 million gold equivalent answers of reserves.
at a cost of just $10 per gold equivalent out. [inaudible]
Speaker Change: Compared to M&A deals in the sector averaging over $440 per ounce and in some cases more than double that.
It's a disciplined strategy.
that underpins our growth plans. [inaudible]
and reinforces the long-term value of our business. [inaudible]
Speaker Change: Saladies and gentlemen, as we wrap up, it's worth highlighting something that really sets Barrick apart in the mining industry.
its ability to present a long-term rolling business plan.
Speaker Change: This isn't common in our sector. Most companies can only talk in one to three-year snapshots but at Barrick we give our shareholders a clear road map.
Speaker Change: The visibility gives us confidence because it allows us to plan...
Prioritize and manage our portfolio in a disciplined way.
We're also shown that over time. [inaudible]
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 a strategy that invests in the future.
Speaker Change: and as you can see here there's significant organic growth built into the portfolio through to the end of the decade and as we've shown in our tenure plan more beyond that.
Look at what we already have. [inaudible]
Navada Goldmines,
Obliviate her.
the Tier 1 assets in Africa.
All with Tangible Brown Fields Upside.
and to that four mile.
Le Mans Expansion,
Speaker Change: and the Rickard <expletive> Growth Project. Plus the new project pipeline, our exploration team is pursuing.
Speaker Change: and you begin to see just how much potential is still ahead of us.
This is a high quality portfolio, built by a high quality team.
Operating in some of the world's most prospective regions.
So
Barrick
is as it stands a standout performer in our industry.
It isn't just the quality of our assets [inaudible]
or the strength of our pipeline.
It's the way we build this company. [inaudible]
on a strategy grounded in long-life Tier I assets. [inaudible]
supported by Growing Copper Portfolio. [inaudible]
Speaker Change: Exceptional growth assets that don't require new debt or share dilution.
A disciplined balance sheet, continuous reserve replacement.
Speaker Change: and a global exploration engine that's active in every major mineral belt.
It's also about our people.
We've invested in our leaders, our teams and our culture.
Speaker Change: and that's why we are able to operate in the world's most prospective but sometimes more challenging jurisdictions.
And you so successfully are my dad and sustainably.
in Partnerships and an Opportunity.
, without issuing new equity. [inaudible]
on the contrary.
Speaker Change: We continue to bar back our shares while investing in growth and strengthening the balance sheet.
Speaker Change: That's the Barrick difference and that's why we believe the best is yet to come.
Speaker Change: Thank you all for listening and we will be happy to take questions.
Speaker Change: and I think Tanya we're going to take from your first, okay. [inaudible]
Ralph Profitti: Thanks, Mark. This is Ralph Profiti from Steele. Thanks for taking my questions. First one.
Speaker Change: 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.
No, I think there's no correlation between the two. I think… [inaudible]
Johnland is way out of the money. And...
Speaker Change: and when you look at our development plans, it was way back at the back end of our development planning.
Speaker Change: The value of Donland in the market is well set by the Nova Gold at the stage of the deal, the Nova Gold market cap. So, that was as close as we could get to a market related value.
and we were comfortable with it.
OK, thanks for that. And clearly, so was Neville Galt.
Speaker Change: Thank you. And then you did a presentation slide on Kabali and having some of the more new geology point you to more complex geological structure. I'm just wondering how you now thinking about perhaps changes to the processing side in order to bring that long-term potential into the fold? [inaudible]
Goundup, it's a plunging series of cigar shaped...
Speaker Change: Or bodies, and it's the reason they end cigars is because it's tightly folded so the mineralization picks out the hinges in the folds.
Speaker Change: 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's you know, 3,000, low, 5,000, low of KCD is what made Cibbali.
Speaker Change: as well as the mineralisation event was at separate. We think it's the former.
Speaker Change: and 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 main mine.
So it's not complicated, it's complicated geologically. [inaudible]
Speaker Change: and Kibbali has always been a challenging geological setting, but we've continued as you know to, we've got double the reserves that we defined in the first feasibility study, still and we've vined for a long time already.
Speaker Change: Good morning, Mark, Brian MacArthur, Raymond James. What I think you highlighted in the report was how you're getting valued at tailings with sulfur to be used in Nevada. And obviously there's a huge benefit from sustainability. But can you just talk about the economics and how that helps? The roasters in Nevada, and just how much it might actually be worth if you're willing to put a number on that? [inaudible]
So the value is significant. And, um,
Speaker Change: Steele, we've got two projects like this, it's Golden Sunlight, which is a closure site in Montana.
continuous water treatment.
Speaker Change: and at the same time delivering a very valuable product in the form of sulfide, sulfide concentrate, which is a fuel in both our auto-claves and our roasters.
Speaker Change: So with that knowledge, the team in Nevada, out of Phoenix...
Speaker Change: and we looked at our tailings again, full of sulphate, and we, and does a feasibility study, and we both are concentrator in Phoenix, and that's...
Speaker Change: Proul Solfer, is very expensive. So, you know, again, we get rid of a environmental challenge and we deliver low cost fuel for roasters and autoclaves.
Speaker Change: Henri, have you got a view of the benefit? [inaudible]
Speaker Change: Maybe a cost of the pro relative to your production cost. The cost of the pro is variable, but right now we pay about $300 a ton for a ton of sulfur and we're producing the sulfur concentrate at Phoenix for under $70 a ton.
So there's the numbers
Terry, can I just follow up and ask her? [inaudible]
Speaker Change: He begs the question, are there other tailings around 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'm just curious. [inaudible]
Speaker Change: No, I think there's, I mean, one of the things just to twist your question a little bit further is what we are looking at is, you know, Nevada is multiple different all bodies.
Speaker Change: and some of the more critical minor elements that you don't find geologically on their own. So that is something and certainly we are very comfortable in being able to reprocess our tannings dams. If you remember, Marulla,
Speaker Change: We mind that superhearted body, at the end of the mind, we remind the tailings down, we continue to make money all the way until we had no more anything left in the tailings down. So, you know, we've done that before and we constantly look at opportunities to realise that.
We need to worry more about...
Speaker Change: Artailings, and in what form? Because historically the mining industry created larger liabilities because of continuous water treatment requirements. And the same goes for copper.
So let's move to...
Nicole
Speaker Change: Certainly. To join the question cue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speaker phone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. To withdraw your question, please press star then two.
Speaker Change: Our first question is from Josh Wolfson with RBC Capital Markets. Please go ahead.
Josh Wolfson: Thanks. There's a lot of interesting headlines that create some conversations today and I just want to sort of clarify what the companies views are on some items.
Josh Wolfson: The first question I had was I think Mark made some comment about. [inaudible]
Yeah, Josh, that's a very good question. [inaudible]
The challenge we have in copper...
Josh Wolfson: The opportunity that's driving very much like 2011 is this perception that the gold price is just going to keep going up.
Josh Wolfson: and developing in the gold industry because one is the demand. You can't see any short-term fixes in the global economy. So there's a lot of reason and de-dollarization has become a reality. You can't see any short-term fixes in the global economy. You can't see any short-term fixes in the global economy.
That's the gazillion dollar question.
Josh Wolfson: but I think the drivers in the market are very much entrenched and superficially the...
Josh Wolfson: The geopolitical dynamics across the globe are accentuating that, but there's a fundamental concern around indebtedness across the entire global economy.
Josh Wolfson: Constantly buying assets that just a year and a half ago weren't viable and paying a premium for it.
Josh Wolfson: of such a nature that they're not viable, certainly haven't been viable at the $4.20, $4.50
Josh Wolfson: and so you've got this inventory but you've got no investment in capital and in fact what you've seen is the copper industry investing in brownfields extensions.
You know
Josh Wolfson: , Accepting Higher Operating Costs, because they can bring that copper production in quickly and at lower capital or what people talk about today as lower capital intensity in other words.
, thousands of dollars per producing ton, or produced ton. [inaudible]
Josh Wolfson: Lemwana and Rickardix such a standout set of assets because it makes real returns at $3 copper.
Josh Wolfson: and it can comfortably carry the capital requirements to do so.
Josh Wolfson: and Lamarna particularly has got a cash flow adjacent to the extra, you know, the second stream that we're building.
Josh Wolfson: What's interesting and not gold is that recently, despite the global economic outlook, which is very fuzzy at the moment.
Josh Wolfson: We pointed to the fact that this is the best time to build copper mines if they are viable at the lower copper process because you bring the production in at a time when the mine picks up and Josh, you are...
This is probably a little bit before your time but...
Speaker Change: You know, that's how we both ran gold, as we took that big bet when gold was $260 an ounce, and we really focused on every viable asset that that sort of gold price or above it, we actually used $450 $2.
Speaker Change: and we were able to build three new minds and capture that big spark in 2011 and we took debt on.
which is what we're doing now. [inaudible]
Speaker Change: and we're able to pay it back on the spark when everyone else was running around.
doing M&A, we were paying our debt back. [inaudible]
Speaker Change: I'll per share value through investments, cash investments rather than premium equity deals.
So that would be my answer to that question.
Guys, thank you!
Speaker Change: The other sort of bigger headline today, and I'm never sure if journalists and perhaps analysts in some situations are taking liberty but there was an article talking about a board formalized process to find a successor. I understand you're committed to stay until 2028, and I guess I just wanted to understand.
Speaker Change: Why would the board be preparing for this three or four years in advance and any sort of commentary on the succession planning? Thanks.
Speaker Change: and there's always bored over such. To your point, everyone is desperate for a story.
Speaker Change: We've, as you know, Randgold was very big on succession. It was a process that we worked with the board to manage. And again, you know,
Speaker Change: Big succession 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 time. I'm sorry.
Transition, and that's why we were able to pick up. [inaudible]
Speaker Change: A very challenging business in the form of Barrick from Rand Gold back in 2019, and be able to spread out and catch most of the issues.
Josh Wolfson: We have that conversation with the board and we have an executive development program as an integral part of that succession program, so the board is involved, so, you know, and let me tell you something, just three years, not a long time.
Thank you for a steady question.
Speaker Change: Yeah, if I can ask just one more question on the operation side. Are there any kind of insights you can provide in terms of how PV is performing post-first quarter results and some of the action plans that were taken then? Thank you.
Speaker Change: A couple of things, but the very big step, the big downtime was the change out of the inner well of the settler.
, single Sagmo, and we weren't clear about...
How we would, whether we needed more settling capacity. [inaudible]
Speaker Change: and so we've done that. And so the throughput is now stepped up, that Ralph that I've showed you, that's on track, it's not, we haven't changed anything. April was a good month on throughput, we're, you know, we're...
Speaker Change: It's a range as we settle down these throughput numbers but we're definitely on average up there at the target for that bar and we've
We're already... [inaudible]
Speaker Change: So again, we're comfortable that that installation is going to deliver what we planned and that's what we're going to track and share with you as we go. And the big focus now this quarter is stabilise that throughput and with the recovery.
Speaker Change: Cortes, but it's really the throughput that drives of their production, the first step up in production, which is what we focused on now.
Dan Major: The next question is from Dan Major with UBS, please go ahead [inaudible]
Dan Major: Status, and can you give us a reminder on what the caram maintenance cost would be if you move to a full caram maintenance scenario?
The
Dan Major: Infrastructure Operating and the Underground Minds properly dewatered. So that's what we've been doing at this stage. Graham, I don't know if you want to comment on the holding costs if we actually close and go on to care about this. Yeah, so...
Thank you.
Dan Major: The current sort of run rate, run rate, Dan is around $15 million a month.
Dan Major: but as Mark points to, you know, we still have all of our...
Dan Major: and staff on the payroll. We have relocated some of our expatriate staff elsewhere. If we were to go to a, let's call it a full Karen maintenance scenario where we were literally just doing skeleton maintenance, you could expect to half that number.
Speaker Change: I'm looking to divest some of the non-corassist online and I see the press commentary around Hemlow. Any other comments you can make on Zaldivar? I know that's one that you've highlighted before is this process of considering the non-corassist's sharp and the focus on that asset.
Speaker Change: Zalibar, we've busy with the renewal of the mining license and we're making good progress on that and that's really the most important.
Speaker Change: Focuss for that team, both on the Antifacustic side and our people who are involved in that process, so that's our focus at the moment for Zelda Bar. I mean, really, Tongan is one, Hemlo, as you know, on Hemlo.
Speaker Change: In 2019 it was already for sale and what we did is we stepped 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 we've had a step up in cash flow from the operation. We've completed the first
Speaker Change: and Ron at the Open Pet Expansion. We've got more work to do. We're drilling at the moment in the underground to be able to...
Work to match the underground reserves of the open pit.
Speaker Change: , Production Profile, and that will take, you know, it's already got a lot of money, it's ten years.
sort of hurdle.
Speaker Change: But it's a good operation. It's always had prospectivity. It's one of those assets that, if you work harder, it continues to deliver. We think it will continue for a while.
Speaker Change: But it's at a stage where we can defend its viability and it will be an attractive asset for a mid-size mining company.
for Barrick and and and again you ought to recall
When we did the transaction, we... [inaudible]
Speaker Change: We immediately, once we got everything visible is we cleaned up the portfolio, Salt Casey, GM, Salt Laguna Snotte, Salt Masawa, in West Africa and we tied up and distributed that capital game which everyone always forgets 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 up to the end of the decade.
Speaker Change: What happens is, and when you clip off the nod call very quickly you see how you steepen up that growth curve of growth.
Speaker Change: You certainly take and allow management to focus on the quality assets. It hasn't got fundamental, it's not a drain on the overall value of the company infected, it enhances the value.
Speaker Change: Non-coassets are well-defined in Barrick as our tier one assets.
Speaker Change: in the 2009-2013, when we bolt out Lulo, Tongan and Kabali together, we ran up quite a lot of debt.
Speaker Change: and Internal Proceeds. We didn't issue any equity in the construction. We issued a bit of equity, if you'll recall, in the acquisition of MOTA.
Speaker Change: and but it really added real value per share to the portfolio and we've started today to give you that look.
Speaker Change: So the precursor to delivering value per shares to actually have the reserves per share starting to train in the right direction.
and so you can track that performance going forward.
Great, thanks.
and maybe I'll just...
Speaker Change: I put one more in there on the portfolio and perhaps a bigger picture question but when I look at asset values across the sector there's been a widening gap between...
Speaker Change: The kind of discounted multiple of, for example, the Nevada assets within the Barrick portfolio. I mean, internally is there any discussion about separating the higher and lower jurisdictional risk assets? [inaudible]
Speaker Change: to realise what appears to be a trend amongst investors of willing to pay more for 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, this is the echo chamber that's developed in the market. But what's driving the valuation in the so-called lower jurisdictions is harvesting? [inaudible]
Speaker Change: If you look at the assets that have really delivered big growth and equity as short-term delivery of strong cash flows and no one in the analyst's fraternity looks at laugh of mind.
Speaker Change: You 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 paying for.
Speaker Change: and again, if you look through, back over the last two decades, the real value comes with long-term delivery, and you know, I mean already...
Speaker Change: When you look at Barrick Yield, it's at the top end of Yield. [inaudible]
The long term laugh of mine.
Speaker Change: A simple professional cash flow model, you get a steepening free cash flow very quickly.
Speaker Change: and we're replacing all the time. So again, when you're not replacing reserves, 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 alternate and you can buy for so long but that also runs out [inaudible]
Speaker Change: and so I would argue very differently it's landing as safe jurisdictions but it's actually harvesting M&A transactions.
Speaker Change: and you know it's worth understanding that if you don't know I'm a big shareholder.
Speaker Change: and I support that this longer term strategy because ultimately that's what makes real money.
Speaker Change: when you look at, you know, it was, it was the African assets that really allowed us to fix all the neglect in Nevada.
Speaker Change: and Deliver Nevada as we see it today. And it's worth looking at the profile...
Speaker Change: of Nevada, when we put the two assets together, just a simple profile, you'll recall we showed you that. And then look at the life of mine profile today. And that comes because of the broad global spread of assets.
Speaker Change: and you'll recall that we've been through some challenging times in Nevada on jurisdiction as well and...
Speaker Change: No different to some of the challenges we have elsewhere in the world. So I've always said a world class, if you want to be a world class you need to be global. And by the way you've seen this, you've seen just in the short history, you've seen Rio go into Mongolia, you've seen Rio go into...
Guinea
and you know actively into Guinea after a coup. [inaudible]
You've seen Newmont buy into Papua New Guinea.
both going concerns and development projects. [inaudible]
Speaker Change: and you've seen everyone focusing in on Central African Republic because that's where the big copper and other critical minerals set.
Thornton, Harvesting and Jurisdiction
Great, thanks so much.
Speaker Change: 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. We're actually good afternoon now.
Speaker Change: Okay, so maybe a couple of questions and maybe I'll put the two asset ones up front just to maybe be mindful of time but you talk about long-term value and the investments you've made in...
Speaker Change: He really hasn't been emphasized to a large degree, particularly on the copper side is Phoenix and there's a pretty significant copper portfolio. Thank you very much.
Speaker Change: or Copper byproduct there. And when you think about that asset, is there some upsides that the market's not thinking about with Phoenix? And, you know, in particular with the US taking a look at some of these more strategic assets that have have Copper, things like the Fast 41 list. [inaudible]
Speaker Change: So that'd be one, and then second would just be on the Goldstrike Roaster. How many days were actually lost to the plant maintenance?
Speaker Change: to the plan maintenance at the Goldstrike Roaster in Q1. Are there any other major planned roaster or autoclave maintenance this year in 2025?
Speaker Change: Yeah, okay, so Phoenix, just to answer that, it's now very much our focus is understanding the full potential of Phoenix because remember Phoenix has always been run as a gold mine, taking the copper credits.
but there's definitely potential at Phoenix. [inaudible]
Speaker Change: Targets within Phoenix that we're currently evaluating, it's relatively early days but Phoenix is a different business today than it was.
Speaker Change: back in 2019. And in the fullness of time, ultimately it is a real resource.
Speaker Change: We haven't really pushed the envelope on conversion yet because we're 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 honours in the audience, you can help with the detail, but really there were two big shots back to back.
The Goldstruck Roaster, and then followed in...
Speaker Change: in April with the Gold Quarry Roaster and that sets us up so we are guiding an improved
Speaker Change: maintenance schedules behind us. And, and, and, Henri, if you'd earn mind adding this sort of timing. Yeah, so the Gold Strike Roaster was planned down for 21 days, and it was up after 20. And the Gold Strike, I'm sorry, Gold Quarrier Roaster went down for 28 days as planned. And, and.
Speaker Change: The Sage Autoclave at TR, we take each Autoclave stream down individually so the plant stays running at 50% capacity but the whole plant that go down for seven days as planned [inaudible]
who go down in September for a planned maintenance job. [inaudible]
and Lawson, I would just add to that... [inaudible]
Compatent,
Speaker Change: Schifting, the majority of down time and plan maintenance, so the autoclaves
Speaker Change: We're taking down just to ensure that the integrity of the bricks are in good shape and bringing them up again so that we don't wait until it busts.
Speaker Change: and so we're in a much better place as far as planned maintenance goes, that's why we are a lot more comfortable we are able to manage our targets.
Speaker Change: Yep, great for that. Thank you. Can I also ask you about the intended use of proceeds for the Dunlin Cash that you'll be receiving hopefully, hopefully shortly?
Speaker Change: Yeah, so, you know, our capital allocation is very clear, and again, if you followed me through my career, we stick to our plan, so...
Speaker Change: 0 net debt and 500 million positive cash. We pay a special dividend and the way to manage that also is share barbed-backs.
Speaker Change: It's good to use some of the the Donland cash to buy back the stock and the best investment we can do right now, it's a creative on every metrics.
is by our stock, so...
Speaker Change: Schaeholt is with some additional dividend and so that's the sort of...
Speaker Change: That's the way Graham and Arthur are thinking about it. It's the way that Board has guided us in 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-domiciling, potentially re-domiciling to the US, there is the cost of losing the net operating loss tax benefit. What are the benefits you're seeing that would justify considering such a move?
Speaker Change: So, you know, the point is, I guess I'd underline your point about considering. Consideration to this has been an ongoing affair, going back to even Peter Monk's days, you remember those to call Barrick American Barrack? [inaudible]
Speaker Change: So I think let's not get ahead of ourselves at the stage.
Speaker Change: The U.S. assets are not efficiently held in the corporate structure and it can be done better.
Speaker Change: Those are always available. We're not planning to do away with them at all. We are always looking at ways to use them, if we can. And so they will be considered in the overall...
Speaker Change: Ongoing debate, and that's really where we are at this stage. I think...
Speaker Change: Canadian Paper, Got A Head Of Themselves On, Rushing Out A Story. Um...
Speaker Change: Needs a logic to drive it and that's the big challenge. [inaudible]
Fantastic, thank you [inaudible]
Speaker Change: The next question is from Tanya Jakusconek, the Scosure Bank, please go ahead. [inaudible]
Tanya Jekuskinec: Mark, can I start back on the non-core assets, now that hemmos on the block, and I look through your portfolio, I think on the previous conference call you had mentioned both Valdivar and Tonga on as being non-core. Where does Pasqua-Lama north of Wartos fit within that portfolio for you? I don't know.
and Hemler is just starting. [inaudible]
Pascua is right now we've just applied for drilling permits.
to define it as a non-core asset.
Tanya Jekuskinec: and we're currently drilling targets adjacent to Valadera, because Valadera we've really transitioned to a good place at the moment.
and as I say we just made the first...
Tascral Armor, we call it L-Alternar, Tanya. [inaudible]
Okay.
Yeah.
Speaker Change: Moffs of Bwesto and other down there are those potential sales. Thank you. Sorry.
Speaker Change: The rest of some of the other assets that you have in particular have. We've realised most of our India, we are alturuses in a process at the moment, I think it's alturuses, the Chili One.
So
Speaker Change: Arbiata is currently we're busy with Newmont on a pre feasibility study, we're doing a study on it, it's ongoing and we'll wait for the results of that study.
Okay.
Speaker Change: and then if I could come back, my second question is a mark on the succession planning and again from the article in the financial time.
Speaker Change: They made it sound that it's a more formal process now. I guess the way you answered it, it's just a normal board process through the governance committee that you review succession planning, you know, quarterly or yearly. Is that a fair statement?
Speaker Change: Tanya, I spoke to the reporter that you're referring to, so... [inaudible]
Speaker Change: You know, you should take my word for it, rather than the report.
Tanya Jekuskinec: Yeah, no, no, that's what I was just trying to understand. It's a normal, normal. We've always spoken about it, it makes sense to develop people's skills. We've got, you know, very structured.
Tanya Jekuskinec: Sustation Plan, and as we get closer to the end of the decade or the completion of...
Tanya Jekuskinec: of Rick Hadick or both. You will see a more formal process emerge. It makes sense.
Tanya Jekuskinec: and some visibility. Are there any timelines, not timelines, but any next steps that we should be looking at or what are your next steps? I think we've reached agreement.
Tanya Jekuskinec: three times with the Marliens, only for them to walk back the agreement, so. Thank you very much.
Tanya Jekuskinec: in what is the appropriate dispute resolution mechanism and we've agreed it and we've used it before this president for it and we would like to believe that that's the focus and right now I can confirm that Mali is participating in that process.
Tanya Jekuskinec: But at the same time as we've always done through the last couple of decades is it's better to and you know I have this conversation with the member of the junta just over a year ago and he agreed that
Tanya Jekuskinec: It's always better to have a negotiated settlement than the badly run. [inaudible]
Legal fat
Tanya Jekuskinec: and so I'd like to believe that what I can tell you is we still very much engaged.
Speaker Change: and Tanya, it's the same situation, remember, we found ourselves in after the transaction in 2019 that Tanzania was closed, Pakistan was nationalized
Speaker Change: A couple of real challenging situations which we diligently worked our way through and delivered significant results out of that and a new partnership.
Speaker Change: and one of the big challenges is the lack of professional advice on the Mali side, which would help a lot if we could sit around a table and really unpack the numbers.
and the thing that really...
Speaker Change: to work on this diligently and that we need to find a lasting solution with the proper due process and the protection of our rights and that's what we're managing. Thank you.
Speaker Change: Can you just remind me what the arbitration would be held? Is this in France? I forgot.
Speaker Change: It's an exit process, exactly where the actual arbitration committee will land is something that the process will define going forward.
but it's a World Bank exit program.
Okay.
Okay, thank you, and good luck.
Thank you
Speaker Change: The next question is from Joshua Reales with RSI Associates. Please go ahead.
Speaker Change: Yes, good afternoon, Mark, how are you? Hello, Josh, I'm very well, thank you [inaudible]
Speaker Change: Good, I have two questions. The first relates to your cost structure. I love your ownership orientation. I love the Barrick Academy.
Speaker Change: I'm looking at how you train people and how you manage costs and I was comparing Barrick's projected all in sustaining costs for the year versus Agnico.
Speaker Change: Could you give a little bit of color on you know what the main factors are that you think drive those higher costs and whether you know it's a short term thing that will converge over time or whether it's because you're [inaudible]
Speaker Change: You know, all over the world and they're more concentrated in jurisdiction. I'd love to get your thoughts about that to understand that.
And the second.
Speaker Change: and the second one really relates to the excitement I feel for the industry and your company. When you look at the midpoint of your production and all in sustaining cost guidance for 25,
The current
Price, Gold Price,
It's about a 1900-ounce. [inaudible]
Speaker Change: Preetax Margin, and I wanted to just kind of confirm that I'm thinking the right way and that that kind of, you know, over a 12 month basis if this is sustained and we don't know if it will be.
That's about a 6.3 billion pre-tax earnings.
Run rate, over 12 months and...
Speaker Change: You clarified how you would prioritize the use of the money. [inaudible]
Speaker Change: But I wanted to ask you on top of that if there was another exciting project besides Four Mile that if you had this kind of excess money, whether you would view your priorities a little bit different and maybe do something more in Canada or somewhere else.
Speaker Change: with the funds are just stick to the special dividend in the buyback. [inaudible]
Speaker Change: Joshua, I'll start the second one. I'll take you back to 2011 to 2015, where people used to complain that round-gold was ex-growth because all we were doing was growing cashler.
Speaker Change: and so your growth comes in many different facets and the most exciting one is when you've got long-term growth sustainability and you grow your profits.
Speaker Change: and you grow your caseload. So, if you take today's spot.
Speaker Change: which is difficult to do because remember there's a cost in it. [inaudible]
Speaker Change: and these costs change in an environment like we're dealing with today and they're still going to come through. But if you take today's revenue side, you're absolutely right. And in fact if the cost profile that we've got today stays...
We won't go into debt at all. [inaudible]
Speaker Change: and we will grow revenues and of course what we have shown is that we don't lurch from one M&A transaction to another but we are consistently investing in our future which eventually pays off.
and Agnika Eagle.
Speaker Change: The US dollar, because the US dollar is the benchmark and inflation, headline inflation and US dollars is real and there's no depreciation of a currency.
Speaker Change: So, and that is depending on the way you look to going backwards, but it's around 10%.
Speaker Change: and Australian dollars are a bit more significantly larger than that.
So then you look at our forecast. What's your forecast?
Speaker Change: Cash Flow, I mean, sorry, all in sustaining costs and total cash costs because we run our business on both. Out to the end of the year, we're well within that range and when you adjust for depreciation when we're talking specifically Agnika.
Speaker Change: but at the same time, we're not harvesting at transaction. We're investing in our future. So,
Fixing up some of the challenges in Nevada. Nevada.
Speaker Change: and the same with Paul Graham, the same with Tans and Air, and we showed you at the investor today that we're running about $150 or even a little bit more on a Perth.
Speaker Change: I mean, shoved back to this position, on a per-ounce basis above what our normal sustaining capital is.
Speaker Change: and so, and we've shown how, why, and we've particularly in Nevada. So, let's get started.
There was a significant neglect in clarinet maintenance. [inaudible]
Speaker Change: So we've had a catch-up on the planned maintenance and we have a cost because we've rolled out the...
, Billion Answers,
Speaker Change: in reserves, in that's gold equivalent, so copper and gold, life of mine shagels, and that comes as an additional cost on the cost side.
Speaker Change: because we don't operate in a big delivery or big answers in Canada or in definitely on Australia.
Speaker Change: and that's really the driver, I see Graham wants to add to that.
Graham: Yeah, I think you've covered it well, Mark. The other point I would make is obviously our forecast production is increasing over the next few years and as that production goes up, we expect our costs to come down.
Speaker Change: So we'll converge. Well this is enormously helpful and thank you for just your great stewardship, the quality of these calls is amazing.
Speaker Change: Thank you for that, Joshua. And as you know, we're always available if you call into the team to help you get those models clear.
Speaker Change: And the last question is from John Tumazos, John Tumazos, very independent research. Please go ahead.
Thank you.
Speaker Change: Could you explain the organizational benefits as you simplify without Donlin and potentially
Zaldivar
Speaker Change: Admin resources, maybe Reclamation personnel down the road, divesting the order minds.
Stales, how much your life is here? [inaudible]
John Tomasso: So the John , nice to hear your voice and as usual you the last but not least in the in the line.
John Tomasso: Exploration Budget with an increasing gold price or decreasing gold price. We're very clear about we have one number, the between the mineral resource management or brownfields teams and the exploration teams.
John Tomasso: They have to compete for those dollars and so what it does is keep us very focused on the quality of our portfolio and over the last
John Tomasso: as you've heard the last, the ramp of the L Indio and some of the other exploration projects that have been around for decades have now closed or dealt.
John Tomasso: Donald has its own team, we managed the process, or Christine and a team, you know, along with the river called Cribb.
John Tomasso: so anyone buying it gets their team if they want it. We are planning to continue our exploration efforts in Aubrey Coast. We've got some interesting new projects there on the other side of the country from Tongan.
John Tomasso: I've spoken about Argentina and some new ones in Ecuador so we've got lots to keep us busy with
John Tomasso: and smaller assets that are at heart cost. And that's something I haven't touched on is these assets we're disposing on are all at the heart cost end of our portfolio and so we would be bringing the cost down without really changing the production profile match. And so we're going to be bringing the cost down without really changing the production profile.
Ha, I hope that helps.
Thank you.
That's it.
there currently are no further questions in the conference call.
John Tomasso: 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 presentations and I appreciate those who have actually made the time to come in and visit for those who are here. We've got...
John Tomasso: and some snacks and you can catch up with the team next door. So feel free to stay on. Thank you again and we'll be speaking to you. Most of you I think maybe in Barcelona next week.
Cheers!
Speaker Change: This concludes today's event. Should you have additional questions, please contact the Barrick Investors' Relations team. You may disconnect your lines. Thank you for participating and have a pleasant day.
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