Q2 2025 Barrick Mining Corp Earnings Call

Speaker #1: Welcome to Barrick's pre-results presentation for the second quarter of 2025. At this time, all participants are in a listen-only mode. After the formal presentation, we will conduct a question-and-answer session for analysts.

Speaker #1: As a reminder, this event is being recorded, and a replay will be available on Barrick's website later today. I will now turn the call over to Mark Bristow, President and CEO of Barrick.

Speaker #1: Please go ahead, sir.

Speaker #2: Thank you very much, and a very good morning and good afternoon to everyone. Thank you all for joining us today. It's a pleasure to be back in London, where the weather has been fantastic.

Speaker #2: And to take you through our second quarter results, and share the progress we're making across the business. Quarter two was a productive quarter for BARRICK.

Speaker #2: One where we built on the positive momentum from quarter one, with stronger production, continued delivery from our tier one assets, and solid progress on our growth projects.

Speaker #2: We continued to perform in a global environment that remains uncertain and, at times, even uneven. This reinforces the value of a diversified portfolio, disciplined capital allocation, and the ability to operate effectively across a range of settings.

Speaker #2: Our performance this quarter speaks for itself. The portfolio is delivering, our balance sheet remains strong, and the second half is shaping up to be even better.

Speaker #2: We're rowing real value through delivery, and while the market hasn't fully recognized this yet, we see it as a clear opportunity. Before we begin, I'll just remind everyone that today's presentation contains forward-looking statements and financial measures that are subject to a number of risks and assumptions.

Speaker #2: You'll find the full cautionary in the appendix to this presentation, and on our website, which you can read at your leisure. So starting with group highlights, this was another quarter delivered in line with plan.

Speaker #2: As we continue to leverage the high gold price, production tracked our guidance, and the second half is set to deliver more. In line with the guidance, we laid out at the start of the year.

Speaker #2: Earnings per share more than doubled versus last year, with adjusted earnings per share at $0.47, the highest since 2013. We finished the quarter in a net cash position, which allowed us to continue buying back shares while strengthening the balance sheet.

Speaker #2: In line with our performance dividend policy, the board has approved a total dividend of $0.15 per share, which includes a 5-cent performance top-up. Operationally, we're pleased with the progress across the portfolio.

Speaker #2: Nevada Gold Mines and Pablo Viejo delivered solid results. Lijuan started to show its true potential, the ramp-up at Gold Rush is gaining momentum, and, of course, Four Mile keeps growing, as we'll discuss later.

Speaker #2: On the operational front, this was another quarter with all the arrows pointing in the right direction. Production approval improved across the portfolio, with solid contributions from Nevada Gold Mines, Pablo Viejo, Kabali, and Lijuana.

Speaker #2: These assets are delivering as planned, setting us up for a stronger second half. In copper, we saw a clear year-on-year and quarter-on-quarter improvement. Production volumes are up, and unit costs are coming down.

Speaker #2: Attributable gold production increased, and importantly, we continue to see a reduction in all-in sustaining costs. As we discussed at the start of the year, controlling all-in sustaining costs is a key focus area for us.

Speaker #2: And we are starting to see that discipline coming through in the numbers. As we continue to focus our portfolio on long-life tier one assets, we completed the sale of our interest in the Donelin Gold project for $1 billion.

Speaker #2: The sale reflects our disciplined approach to capital allocation and further sharpens our growth pipeline. Turning to the group's financial results, the combination of improved operating performance and a stronger gold price has delivered the best quarterly adjusted earnings per share in over a decade.

Speaker #2: We can see a significant improvement in revenue, net earnings, and adjusted net earnings, with all three tracking upwards compared to quarter one and the same quarter last year.

Speaker #2: Our attributable EBITDA growth reflects stronger margins, and net cash provided by operating activities came in at $1.33 billion, up 35% from last quarter, excluding interest and income taxes.

Speaker #2: Free cash flow improved, supported by the gold price, and disciplined capital allocation and, as I mentioned, earnings per share increased to $0.47 cents. Aligned with the operational and market tailwinds, we've discussed.

Speaker #2: The trend here is clear. Barrick is on a positive trajectory, with even more to come. This slide really highlights the product of our clear and consistent capital return framework.

Speaker #2: It reflects the disciplined approach we take to allocating capital. Ensuring we deliver long-term profitability across our portfolio while building value through the growth of our tier one assets and new projects.

Speaker #2: In the first half of the year, we've already returned $753 million to shareholders through a combination of dividends and share buybacks. That is even before the performance dividend we declared, which will be paid out in Q3 in line with our capital return framework.

Speaker #2: And importantly, this is just the first half of the year. All indicators point to an even stronger second half as we continue to deliver on our plans.

Speaker #2: As we all remind each other every day, at Barrick, health and safety remain a core priority. This quarter, we saw further improvements across both leading and lagging indicators.

Speaker #2: Year to date, we've achieved a 50% decrease in lost time injuries and a 37% decrease in total injuries compared to the same period last year.

Speaker #2: These gains reflect both stronger frontline engagement and the effectiveness of our critical control verification program, which remains central to how we manage risk and embed a culture of safety across all our sites.

Speaker #2: Let's now turn to operations. Starting with North America, this was the first quarter where Nevada Gold Mines led the group's performance, driven not only by production but by progress on key growth projects.

Speaker #2: As we've said before, the complexes are transitioning to a predominantly underground operation to support development. We initially brought in contractors, but now we're shifting back to self-perform as the capacity of our in-house teams improves.

Speaker #2: At gold rush, the ramp-up continues in line with plan. As we move towards nameplate capacity, at the same time, we're super excited by the potential at four mile.

Speaker #2: BARRICK's 100% owned asset, which is effectively an extension of the Gold Rush orebody, is even better. I'll speak more about that a little later. At Nevada Gold Mines, we saw increased gold production this quarter, reinforcing the financial strength of the portfolio and helping drive a reduction in all-in sustaining costs.

Speaker #2: That trend is expected to continue, with further cost improvements anticipated by the end of the year. Production gains were driven largely by higher volume at Collin, and the reduction in sustaining capital contributed to a lower overall all-in sustaining cost.

Speaker #2: With all major planned maintenance shutdowns now behind us, we're well positioned to deliver an even stronger second half. Turning now to four mile. This asset is rapidly competing to be the largest and highest-grade gold discovery in the industry this century.

Speaker #2: Since we last showed you this picture, the orbody potential has grown significantly and the grade is also increasing. Let me pause here to reflect for a moment.

Speaker #2: As you'll recall, our resource as calculated at the end of 2024 and is shown in this table is represented by the red outline of this graphic.

Speaker #2: It's also that red arrow. If somebody's struggling to see the outline. The black dotted outline in what we expect to convert this year and where all indications point to us doubling the current resource or more.

Speaker #2: Even more exciting is what's shown by the green outline on the slide. Where we are continuing to define significant high-grade orbody extensions. Four mile is no doubt emerging as a generational asset.

Speaker #2: And it's worth putting this in context, and I think Simon did it at our Investor Day. If you look at Goldstrike Underground, which was, as some of the older folks in this audience will remember, the maker of Barrick then.

Speaker #2: Gold strike underground today has produced some $13 million ounces to grade of around 10 grams a ton. Our current exploration drilling, which is adding to the previous drilling and some of it is shown here in the yellow dots and the black dots, the ones with the grades attached to them, is really highlighting the potential.

Speaker #2: And it's a long-time since we've seen these numbers of intersections at these grades, with these thicknesses. And you know what you have is an extension of gold strike and then I an, correction, gold rush, and this is now accessing host rock that is brittle and we've now got these large breccia bodies that are delivering the grade.

Speaker #2: It's also important that these large bodies are competent. So when you intersect them for those geologists or mining engineers in the audience, when you drill through them, the cores continuous.

Speaker #2: And that's not normal in Collin-style ore bodies, where you have many breaks in the core when you drill through the ore body. So it really does. When you just look at it from a like-for-like perspective, whether you use Goldstrike or Gold Rush, the unit underground mining costs are going to be substantially lower.

Speaker #2: The other part of this is the geometalogy and we're now well down the road in making intersections across that purple patch. That you see on the screen.

Speaker #2: Because there are indications that a significant amount of this ore body could well be not double refractory but single refractory ore. And that's really the focus.

Speaker #2: The rest of this year is going to be really to frame the potential of this orbody we've resisted the temptation of trying to bank it.

Speaker #2: Really to get our head around the size of this orbody and the grade. And then we will start thinking about the next step. And the next natural step is to look to access it from underground.

Speaker #2: And we have an opportunity with minimum permitting to be able to do that. From the old bullion hill site. And with that, we believe we will save five to six hundred million dollars in drilling as if we were compared to if we had to try and drill it out from surface, which are long complicated holes.

Speaker #2: So I think you know what I want to leave you with, and I'm definitely going to be talking about this every quarter going forward, is the significance of this resource. The difference that really should be considered here is that this is a world-class, tens of millions of ounces, and it's right in the middle of infrastructure.

Speaker #2: The Nevada infrastructure, it's not something that you have to go and establish in some complicated place. In other parts of the world. So I'll leave you with that and again, you know when you look at the intersections multiple meters tens, 20, 30, 50 meters at one and two ounces per ton, rather than grams per ton.

Speaker #2: It's very significant. Let's move on to Latin America and Asia Pacific, which delivered another all-round solid performance this quarter. It's worth noting that this was a very challenging region when we started out back in 2019.

Speaker #2: At Pablo Viejo, we made further progress on the plant expansion. Supporting improved throughput and production quarter on quarter. Valadero continued to trend well and at Zaldivar, we secured new mining permit for that operation that now extends the operation's life through to the at least 2051.

Speaker #2: We also continue to advance the permitting process at our El Alto exploration project. And as you will see shortly, Ricodic remains firmly on track: a world-class project with exceptional long-term potential.

Speaker #2: At Pablo Viejo, we delivered, as I said, a solid improvement in gold production this quarter. On increased plant throughput, while also driving unit costs lower.

Speaker #2: The plant modifications completed last quarter are working well, and we expect continued momentum as throughput ramps up further in the second half. You would remember that we went down not in the whole process, but on parts of the process for a period of 35 days in Q1.

Speaker #2: Really focusing on de-bottlenecking the throughput within the operation. Construction of the new tailing storage facility is advancing. With access roads currently underway and engineering design optimization going forward.

Speaker #2: The focus this year has been on de-bottlenecking the planting improving throughput as I've already mentioned. And that progress is clearly reflected in the production trend that you see here.

Speaker #2: The little correction in the third bar on the top is the quarter where we were shut down for a while. That's why the throughput is down on that light blue bar.

Speaker #2: Throughput continues to rise with steady growth expected through the second half. As a reminder, Q1 was impacted by a planned shutdown, but the overall trend is firmly upward.

Speaker #2: We're targeting a throughput of 12.8 million tons per annum by 2026. Importantly, we continue to optimize the life of mine, and while the ramp-up has been gradual, we are managing the blend more aggressively by adding older, higher-grade stockpiles during this phase, which is being built into the plan.

Speaker #2: And we'll be updating as we go and as we progress our test work on the old stockpiles. We have a significant reserve base in stockpiles at Pablo Viejo.

Speaker #2: As mentioned earlier, the resettlement action plan at PV is progressing well. A key milestone in this quarter was the signing of a formal agreement with the affected communities which was resolved all out, which has resolved all outstanding issues through a commission process mediated by the country's public defender and the Catholic Church.

Speaker #2: With that in place, families are now moving into the New Horizons housing estate each week, and we're seeing steady progress on this important social commitment.

Speaker #2: And it's worth noting a lot of these folks were living in the effectively the jungle in singular houses of which they didn't own. And this housing estate comes with a preschool, primary school, middle school, and ultimately a technical high school.

Speaker #2: And you can walk to school from your home. And it's got Surrey's running water. You know, it's a modern state, as you can see.

Speaker #2: So, and everyone gets a title deed. So, and that's a very important part of developing a value base for people in emerging markets. Move now to Ricodic, where we've made further progress in advancing this world-class project.

Speaker #2: Fleur has now been formally onboarded as the EPTM engineering partner, and the design of the tailing storage facility has now been completed. Early works are underway, and the project remains on track.

Speaker #2: Ricodic continues to represent a significant long-term value opportunity for Barrick. A truly world-class asset with meaningful upside. We have also made good progress on the project financing, and with the bulk of the due diligence complete and documentation well advanced, we continue to work to complete the financing this year.

Speaker #2: Six years ago, as I mentioned, in Latin America and Asia Pacific, the opportunities were limited. Today, it's a region with a significant exploration footprint and meaningful value upside.

Speaker #2: Over this period, we've rebuilt our exploration team and established a portfolio of tangible near- and medium-term opportunities. We've had encouraging results in Argentina, with prospects that could extend the life of the mine at Valadero.

Speaker #2: In Pakistan, drilling extending our new discovery at Bukit Pasir is ongoing, and we've already got a new discovery in that mining license. And just a point: this new discovery has yielded some drill intersections that are among the best ever drilled in the complex porphyry or the porphyry complex of Ricodic.

Speaker #2: And we're talking hundreds of meters of intersections that contain continuous 0.8% copper. We are also advancing new targets through drilling in the Dominican Republic and in Peru, further strengthening our future growth pipeline in the region.

Speaker #2: Turning now to Africa and the Middle East. This quarter focused on further unlocking the value potential across the region as one of our main cash generators of the group.

Speaker #2: We saw a solid performance across the portfolio, with encouraging improvements at Kabali, which I'll speak to in more detail shortly. In Mali, we continue to manage the situation in a measured and constructive manner.

Speaker #2: We are continuing with arbitration, and we are committed to finding a path forward for the benefit of all stakeholders. For those of you tracking updates closely, I encourage you to visit the microsite we recently added to our website.

Speaker #2: As I said, Kabali delivered another strong quarter with higher production and improved unit costs across the board, supported in part by a reduction in sustaining capital.

Speaker #2: We also commissioned the solar power plant and battery energy storage system, further strengthening Kabali's position as one of the most automated and also one of the greenest gold mines in the world.

Speaker #2: Tanzania delivered another on-track quarter, with North Mara continuing its steady performance. At Bullion Hulu, we're continuing the expansion project with a focus on a second access and production area to support future growth.

Speaker #2: Gold sales during the quarter trailed production slightly in Tanzania, as we adapt to the new legislation requiring 20% of the production to be reserved for in-country trading, with an associated royalty reduction benefit.

Speaker #2: And now Zambia and Lijuana. We are very excited about our progress at the Lijuana Super Pit expansion. The operation continued on a steady upward trajectory, with year-on-year and quarter-on-quarter increases in production and a positive reduction across all key metrics.

Speaker #2: The expansion project itself is well on track. We've refined the development plan, and Lijuana has self-funded the project through operating cash flows so far this year. We expect it to do that for the rest of the year.

Speaker #2: At current spot prices, once complete, the expanded operation is expected to deliver 240,000 tons of copper per year, supported by a $52 million ton per annum processing plant and a mine life of more than 30 years.

Speaker #2: And it's worth just looking at the right-hand side of the results there. If you look at last year's Q2 2024, production copper produced 25,000 tons, and then in Q1, it was 25,000, 27,000; in Q2, it was 25,000, 44,000. There's a commensurate drop in the unit costs per pound of copper, in all-in unit costs and all-in sustaining costs. It's very material, and that's where our focus is.

Speaker #2: Lijuan is a mine that, since Barrick acquired it, never made a profit until 2020. This was due to all in discipline and unit costs, and today we are going to expand on that.

Speaker #2: And we need the all-in sustaining costs to be under $3. And then, you really see that proves our feasibility model extremely well. As you know, there are not many copper mines that are capable of delivering plus.

Speaker #2: I mean, minus three dollars a pound all-in sustaining costs. And again, you know Africa and the Middle East remain well positioned to replace its reserve depletion again this year.

Speaker #2: A hallmark of the region over the many years that it has been operating, and this quarter we continue to advance near-mine exploration with standout progress along the ARK corridor at Kabali, with drilling extending mineralized loads and confirming significant exploration upside.

Speaker #2: And that ARK sits right next to the main KCD ore body, which is the real basis of Kabali's value. Greenfield programs are also progressing across the region.

Speaker #2: In Tanzania, the DRC, and across the Central African copper belt, which spans both southern DRC and Zambia. In addition, we continue to advance our early-stage exploration in Saudi Arabia, further reinforcing the depths of our pipeline across this region.

Speaker #2: This slide really speaks to the strength and resilience of our portfolio. While we continue to work towards a solution for Lulo Goncotto, it is important to note that even without it, the underlying value of our portfolio still significantly exceeds our market value.

Speaker #2: BARRICK remains a peerless opportunity to invest in a world-class gold and copper business. And few, if any, companies in the sector can match the depth or quality of the growth you see here.

Speaker #2: We grew production in Q2. As I have repeatedly said, the second half is set to deliver both higher volumes and lower costs in line with our full-year guidance.

Speaker #2: At the same time, we're replacing the gold and copper we mine and growing 30% organically by 2029. This is a portfolio we are building to deliver over the long term.

Speaker #2: With tier-one assets, world-class people, and a disciplined capital allocation strategy backing it all, it is our opinion that Barrick remains one of the most compelling investment cases in the gold and copper space today.

Speaker #2: This is an enterprise with world-class assets, a clear growth strategy, and the balance sheet to fund that growth without diluting our shareholder equity. We're consistently delivering on our promises.

Speaker #2: Growing production, replacing our reserves, and returning more capital to shareholders. This is a company built on the foundations of long-life assets and strong partnerships.

Speaker #2: Financial discipline, exploration excellence, and a sustainable operating model are the pillars that underpin everything we do. In a world searching for real assets, strong partners, and responsible growth, Barrick stands apart.

Speaker #2: Few can match what we offer, and fewer still can do it without debt or dilution. Thank you very much for your attention, and we'll be happy to take questions.

Speaker #2: Perfect. Hi, Dan Major from EBS. Nice to see you in London. Guys, I have a few questions. So the first one is on Lulo Goncotto. I appreciate that the best solution would be a restart, etc.

Speaker #2: But can you give us any timelines around the key milestones to look forward to in or look for in the arbitration process? You know, what we should be looking for?

Speaker #2: In the event that a resolution can't be reached?

Speaker #1: So I think that we're not at that stage where we don't believe that we can find a resolution. I've always said, Dan, that when you're aging and talking, there's always an opportunity.

Speaker #1: Of course, there's been some activity in Mali, which complicates the process. But as far as the exit process goes, the tribunal has been appointed.

Speaker #1: The Malian authorities have nominated their member to the tribunal, and we have an independent president. So it's constituted. We've already presented our first application for some interim relief measures.

Speaker #1: We're really focused on cautioning everyone not to damage the assets while we try to seek a solution. That process will build on.

Speaker #1: At the same time, we continue to engage through other sorts of treaty programs between Canada and Mali. We have representation in the country through our legal counsel, which is in-country.

Speaker #1: Really experienced team, as well as some of our executives that are still in the country. We also have third-party mediation ongoing. So, there's a lot of effort going in.

Speaker #1: And we still, as I say, communicate. So it would be unwise, and you've seen some efforts to try and take this discussion dispute into the public domain.

Speaker #1: We're mindful that that's not the case. We have built a site on our website that really updates people on the facts, and we'll continue to build on that so that somebody who wants to see how it's progressing and wants the facts, we can do it.

Speaker #1: But, we're, I mean, in all my years in this game, it's not a good practice to try and negotiate in the public domain.

Speaker #2: Okay, thanks. And then the next question on divestments. It looks like you're kind of moving forward with Hemlo, Tongon, and Zaldivar, which had the water permit extended.

Speaker #2: So, we got visibility on the life of mine of this asset now. What's the fit in the portfolio? And then I guess the same question for poor growers at core asset as it stands today.

Speaker #1: Well, I think we've got enough to get done in the short term. So let us finish that, and we'll come back to the others. Dan, I think you owe—I reminded somebody today, back in 2019, when we closed the merger with Barrick and Randgold, Hemlo was on for sale then.

Speaker #1: You know we invested quite a lot into Hemlo to reestablish it as a viable operation. As we've seen, there's a real appetite for these types of mines.

Speaker #1: And again, our view is that there's a time when we have to test our portfolio against our disciplined approach to Tier One long-life assets that can get us through all the cycles in the commodity space.

Speaker #1: And it's good practice. I mean, we, as you know, are one of the few miners that have been able to add 110 million ounces of gold equivalent to the reserves in Barrick over the last six years.

Speaker #1: And so we invest in our future. We've brought in some significant new reserves in the form of Ricodic, and we've converted big reserves in PV and likewise in Lijuana.

Speaker #1: And so it makes sense to rationalize your portfolio from time to time. We did that immediately after blocks in 2019, as you recall. And it's now, you know, quite a few years on.

Speaker #1: We've got growth ahead of us. It makes good sense to clean up the portfolio, and it's a good time to do it when there are buyers out there in the market.

Speaker #2: Okay, thanks. And then just one more, if we could, on Four Mile. It looks like some kind of really exciting results going forward. Does this change the way that you're thinking about the scope of the operation going forward, or the timeline, given the growing scale?

Speaker #2: Yeah, how do you see that?

Speaker #1: So there's still a lot of water to flow under the bridge in Four Mile. We have shortened the timeframe, so we would like to have a sort of scoping position for the project by the end of this year.

Speaker #1: We'll then decide what's the next step. Is it pre-feasibility or feasibility? Exactly how do we take it to the next step? And for me, just looking at Four Mile and you look at Nevada Gold Mines, if you take Four Mile and put it into the middle of Nevada Gold Mines, which is where it should be, you replace some of the feed in the roasters, which is our constraint.

Speaker #1: At three to four times the grade, you can up the profile, add life, and drop the costs. So it's a very valuable asset within that complex.

Speaker #1: And you know, I think the harder we have worked at our partnership with Newmont in Nevada gold mines, and we will continue to do so.

Speaker #1: And at the same time, you know, I think we've shown that we can permit mines in the United States. We permitted the Gold Rush and Robertson recently.

Speaker #1: That was before the Trump administration. Of course, the current administration has made it a lot easier by focusing the permitting process to ensure that it doesn't get hijacked by litigation.

Speaker #1: But it is focused, and no one's trying to change the regulations. The regulations are proper and aligned with our global view. I would also add that we are very active in the brownfields and greenfields extensions to the Nevada portfolio.

Speaker #1: That's Nevada Gold Mines' portfolio, the joint venture portfolio. As we are further afield within Nevada, as Barrick itself, we see this opportunity.

Speaker #1: We've seen it all the time. We have been investing in building that knowledge and making sure that we can permit drill platforms, which we're pretty good at now.

Speaker #1: And so, over the rest of this year, you'll see some more opportunities. You know, we will find some more opportunities to expand our portfolio within the United States.

Speaker #2: Great, thanks.

Speaker #3: Hey, Mauricio Carulli from Quilter Chiviot Investment Management. I haven't followed the company for a while. So I have two questions. Out of ignorance, this question on Lulo: on the balance sheet, has the book value of the assets been partially impaired or completely impaired?

Speaker #3: What is the situation there?

Speaker #1: So, let me pass it on to Graham. It's an accounting procedure given the current situation, and he's the best man to explain that.

Speaker #3: Thank ou.

Speaker #2: Is it on?

Speaker #4: Yeah, it's on down there.

Speaker #2: Yeah, so as Mark said, from an accounting point of view, once the government appointed the administrator to take control of Lulo Goncotto, that meant that we no longer had control of that asset. Therefore, from an accounting point of view, when you no longer control the asset, you can't consolidate it.

Speaker #2: And so we did two things. We deconsolidated the asset and effectively wrote off the assets and liabilities on the balance sheet. Then we subsequently did an evaluation of our investment because we still owned 80% of that asset.

Speaker #2: We can still expect to get the benefits from our investment in that asset. And so we did a valuation of that asset using a number of different metrics, including risk-adjusted cash flows that we expect to get from the asset over a period of time.

Speaker #2: And the difference between those two was approximately $1 billion before tax, and about $600 million after tax, which is what was put through the P&L.

Speaker #2: I would just point out at this juncture that we also sold the donor asset during the quarter. We recognized, again, on that which was around $750 million after tax, about $600 million.

Speaker #2: So, in effect, we had a loss and a gain which more or less offset each other, which is why when you look at the adjusted earnings and the net earnings, they're approximately the same.

Speaker #4: Okay, thank you y much.

Speaker #3: Much clearer now. And this second question is just to have a bit more color. On the project that you have in Saudi Arabia, Jabal Sayid, if I pronounce it correctly.

Speaker #3: Both in terms of ownership structure and in terms of development expectations, etc.

Speaker #1: So, it's a small, high-grade copper mine underground. It has a 10-year life still. We've been very successful in adding life and increasing production. It's a very low-cost producer.

Speaker #1: It's payback all its loans and debt and it's a big contributor in towards its partnership. Its own 50/50 between Biden and BARRICK. And that's been a, you know, we effectively we're the only foreign operators because we are the operator of the mine.

Speaker #1: We are equal partners with Biden, but we operate the mine. What it's proven is that you can operate in Saudi Arabia. Again, we have expanded our partnership with Biden in the exploration fund, both around Jabal Said and, more recently, we're looking beyond that partnership because that's the real partnership.

Speaker #1: You know, we built a lot of partnerships in my career in complex jurisdictions. And as you know, Saudi is the state mining company, effectively.

Speaker #1: And it has great depth, and it's really focused on bulk mining. That's its major value. But it has these portfolio exploration rights across the Arabian Shield, and we see that as a highly prospective minerals belt.

Speaker #1: Particularly prospective for both gold and copper, and so we're working with Biden to expand our partnership across that region.

Speaker #3: Thank you.

Speaker #2: Questions in the room?

Speaker #3: Mark, it's just in Barrick at JBM. Just a quick question on Lijuana and the electricity situation in Zambia. Is there an update on the availability and some of the power plans there?

Speaker #3: Thanks.

Speaker #1: Yeah, and nice to see you, Justin. So we've put a lot of work into the feasibility on the expansion on the power.

Speaker #1: We did a big survey of the whole Zambian power grid. And what we two things in that we've managed the power. One in the short term with the low water levels within the Zambezi River.

Speaker #1: What we did was work with the state power utility to wheel power through the grid from neighboring countries. We were able to do that relatively in a cost-effective way.

Speaker #1: A lot lower cost than running diesel engines. And the other thing that we discovered was that there was a significant loss of power in the grid because of poorly synchronization of the feeds into the feeding into the grid from various different sources.

Speaker #1: And in a partnership between First Quantum and Barrick, we set about to address that and unlock an estimated 500 megawatts of power.

Speaker #1: And we've invested in technology to resynchronize that power and unlock some of that lost power. We also have a partnership with First Quantum.

Speaker #1: They're investing in what we call STATCOMs, which are these synchronizers, effectively. We are also funding some additional redundancy power lines to create loops in the feed.

Speaker #1: And that is, and it's, again, in partnership with ZESCO. We believe that we have the permitting now for the power that's required for our expansion.

Speaker #1: And so, as First Quantum, we believe that together we will be able to support the expanded demand for power expansions and their expansions.

Speaker #1: And then at the same time, there are a number of power projects within the Zambian grid that need investment but certainly can deliver low-cost power.

Speaker #1: And that power region is, you know, people are talking now about exporting power from Zambia through to the DRC. That's like the strangest thing I've ever heard because, you know, the DRC is a real power sink in Central Africa.

Speaker #1: And then the Tanzanians are constructing and have recently finished a big hydro facility within Tanzania. It's really large. It will have, when it's fully developed, significant capacity.

Speaker #1: And there are now Saracen negotiations on linking that infrastructure into that region. More and more, that region, the SADC region, is looking at integrating their power infrastructure across the various countries.

Speaker #1: And so there's quite a lot of opportunity to improve the security of the power supply and also make it more cost-effective. So, you know, we're very involved in it.

Speaker #1: We're comfortable that we'll be able to manage with the plans in place for the expansion of Lijuan. Okay, shall we go? Who's in charge there, Claudia?

Speaker #5: For the Q&A section of today's session, we'll be utilizing the raise hand feature. If you'd like to ask a question, click on the raise hand button at the bottom of the screen.

Speaker #5: Once prompted, please unmute yourself and begin with your question. We'll pause a moment for the queue to assemble. The first question will come from Matthew Murphy with BMO Capital Markets.

Speaker #5: Your line is open. Please ask your question.

Speaker #6: Hi, Mark and team. Just a couple of questions on the sequential outlook for the back half of the year. One would be Pablo Viejo, and particularly the focus on improving recoveries.

Speaker #6: Do you still target 85% recovery in Q4? Or how are you thinking about that? And the other would be the Nevada Gold Mines cost trajectory.

Speaker #6: How do you feel about the path to lower gold unit costs for the second half of the year?

Speaker #1: So as if you do the math, Matthew, the there's an improvement in production across the group and particularly at Nevada gold mines and right now if you adjust for the increase in gold price, we're we're guarding that we'll get there.

Speaker #1: Certainly, on a group basis, out to the back end of the year. On PV, the big focus on PV is throughput. One of the things that you know with the delays in the expansion, particularly the tailings facility, is that we have a substantial stockpile that we blend with the threshold.

Speaker #1: And some of that stockpile is high grade. But it's deteriorating. And so the so we've back in 2019, we did a comprehensive evaluation of those stockpiles into the 2020 we've started another campaign.

Speaker #1: And the view is that we need to look at that mix and also take into account the older stockpiles, which, by the way, are higher grade.

Speaker #1: And what it does too in this gold price environment is it improves the cash flow because the stockpiles, of course, as you'll appreciate, are paid for.

Speaker #1: So, we'll update you as we go on that. There's always been a debate around the recoveries and the profile. In the course of time, we'll keep you posted on what that looks like.

Speaker #1: Graham, you want to add?

Speaker #4: I would just add, Matt, that in terms of guidance for the second half of the year, obviously we did guide $46 million to $54 million for the first half; second half.

Speaker #4: But then we've also guided that each quarter is sequentially better. So, you know, you can do the math yourself, but if it's 54 and 27's the midpoint, maybe it's 26-28 or something like that, just to give you some sort of broad parameters.

Speaker #4: In terms of what you can expect, step ups.

Speaker #1: And I think, Matt, just to finish off, as you know, we touched on it earlier in my presentation. We had a lot of downtime at Gold Quarry, or first of all, Gold Strike Roaster, Gold Quarry Roaster.

Speaker #1: The autoclaves we had the winder replacement. The motor replacement in Kabali. We were down not 100%, but intermittently down for 35 days in PV.

Speaker #1: So, we've got a lot of that big, you know, some of it retrofitting, others planned maintenance behind us. So, we've got a reasonably good run out to the end of the year, which supports Graham's outline of how we expect to perform.

Speaker #4: Okay, thank ou.

Speaker #1: So, no magic in the numbers.

Speaker #5: Our next question will come from Anita Sony with CIBC. Your line is open. Please ask your question.

Speaker #7: Hi, good afternoon, Mark and team. Just a little bit of a follow-up on PV, just as Matt asked. So, with substantially higher grades, could you let us know what the stockpile stands at in millions of tons, or how many tons you will be looking to go through as you re-sequence?

Speaker #1: So it's a lot. Simon, are you on the call? You're... Anita, let us... but it's like, you know, when you... I would guess it's around 10 million ounces.

Speaker #1: In stockpiles, it’s $20 million out to the end of the life, so it’s substantial. I can give you the numbers.

Speaker #1: They are disclosed, so in our filings.

Speaker #7: And an update on the an update on the tailings. Can ou just give us an idea of I mean, you're pushing the throughput. That was I mean, pretty, pretty high and pretty good throughput at PV.

Speaker #7: When we think about the tailings facility, how much room do you have ahead of you, and how should we be thinking about the second phase? When do you need that?

Speaker #1: So we've got out until 2030. Capacity and some flexibility to extend the life of the current tailings facility is included in that. And so right now we're, you know, it's not quite on the critical path.

Speaker #1: But it's, you know, we're very focused on making sure that we schedule the construction of the tailings facility to be able to receive the tailings out towards the back end of this decade.

Speaker #7: All right. And then just moving to Turquoise Ridge.

Speaker #1: Bridge.

Speaker #7: Yes, I was about to say turquoise. So, turquoise bridge. I'm just—can you remind me, are you blowing through stockpiles there too, as well, right?

Speaker #7: I mean, you're mining much higher grades than you're putting through the process plant. When do you think you'll be reverting more to trying to get to like a higher blend, I guess, of the underground material versus stockpiles?

Speaker #1: So, it's important you know right now that some of the high-grade material is high carbon. So, you need to blend it to be able to manage the recoveries.

Speaker #1: And and and and that's the that's the life of mine plan is is is managing that blend. So again, you know the the the throughput as you saw in this quarter, there's still some headroom on the throughput.

Speaker #1: The recoveries are in good shape. And and we're we're you ow turquoise bridges is a you know significant asset. There is other opportunities on the in the open pits.

Speaker #1: And, and, and so is Simon on? Simon?

Speaker #2: Yeah, I'm here. Can you hear me now?

Speaker #1: There is a question about the stockpile tonnage and grades at PV.

Speaker #2: Yeah, so we have 97 million tons at 2.45 grams per ton. Portions of that stockpile were run as high as 2.7 grams.

Speaker #1: Okay, there we are. That's the answer. And if you look at the stockpiles at Turquoise Ridge.

Speaker #2: Sorry, one second though. I need to get those numbers.

Speaker #7: It's okay. I'll ask my last question and then come back to you. Yeah. Just lastly on... sorry, I'm halfway through my modeling here, actually about two-thirds of the way through the modeling.

Speaker #7: But in terms of the overall contribution, I know it's a small contribution, but it seems like you have a significant ramp-up there in getting back to the prior run rates before you had all those issues, whether it was with Untry or the issue with the landslide.

Speaker #7: But what are we looking for in the back half of the year, and what does 2026 look like?

Speaker #1: So, we’ve really reoptimized Porger. You know, if you look at the dividends that we’ve paid out, the percentage dividend that comes to the two investors, Engine and ourselves, is substantial.

Speaker #1: And and so and and we're y recouping that the investment we made during care and maintenance. So there's a a stronger cash flow component of every dollar we make back to the investors.

Speaker #1: And it's important that we get that back. At the same time, we are still one of the most significant contributors to the treasury in Papua New Guinea. As you would know, I don't know if you follow that, but you would have seen the Prime Minister actually issued a press release recently praising Porger for its contribution to the treasury.

Speaker #1: Graham, you want to ?

Speaker #4: I was just I was just going to say it's in terms of production, Anita, it's you know the outlook is slightly more than the first half, but not materially more.

Speaker #4: And just in terms of your earlier question on Turquoise Ridge, it’s 26 million tons at 2.26 grams per ton of stockpile.

Speaker #7: Okay, thank you very much.

Speaker #1: And I think the other thing that, Anita, and it's worth all the analysts reaching out to our team, is that Barrick's policy is we do not design life-of-mines to maximize NPV.

Speaker #1: We design life of mines for long-term delivery. To fully optimize the ore y. And and and that's all the always the way we've one it and it's the way we will continue to do it.

Speaker #1: And so when you're building models, you know you need to be aware of our philosophy, which is quite different from others in the industry.

Speaker #1: And you don't get that big production growth in front and then a cliff developing in the back end of your life of mine.

Speaker #7: Okay, thank you.

Speaker #5: As a reminder, if you would like to ask a question, please click on the raise hand button, which can be found at the bottom of your screen.

Speaker #5: Our next question will come from Joss Wilson with RBC. Your line is open. Please ask your question.

Speaker #2: Thanks very much. Going back to the slide on formal slide 10, you know just looking at some of these outlines you ow the existing resource looked to be you know significantly less than half of what the footprint is.

Speaker #2: That’s, that’s off in the green there. And in the grade also looks, I mean maybe 50% or maybe a little higher than that, but you know, substantially lower grade is the existing resource versus what’s sort of been delineated.

Speaker #2: So some pretty big, at least in my view, some pretty big updates at this asset. I guess, first of all, I mean, is that the right way of thinking of things?

Speaker #2: And then the second part of this is there was an initial PEA that was issued, I think, in late last year that talked about over half a million ounces and, you know, production rates per year and a throughput rate associated with that.

You know, thinking about the valuation of the, of, the, of the stock. Uh, and also, I guess, in the context of The Upside here for mile, um, how are you thinking about Capital, allocation, uh, you know,

I like this quarter's results. Buy back, uh, levels were were healthy. You know, they increased from last quarter, uh, there was also a big, um, uh, disposition the healthy cash position but, you know, some of that went to the dividends, you know that that inflow from an asset sale might not be repeated in the future but it might be. So you know what I'm on, I guess is. How how would you be allocating cashier going forward? Um, and how important is the buyback?

So I think we we're on track to uh we are committed to that 1 billion dollar buyback strategy, where the year today at 41 million um and so you know that's that's the way we will manage it as per our Capital allocation, we're quite disciplined in the way we manage our Capital allocation as I've you know, Graeme and I have been like that certainly ever since we've worked together.

um,

And, uh, do you want to add something, Grab?

Uh, we obviously are always looking at opportunities and uh, we can continue to pay a performance dividend. So it's, it's about taking advantage of our options and keeping our flexibility but certainly BuyBacks is something that we will, you know, increasingly focus on given. Yeah, the fact that the shares are very undervalued and and Josh, I just add that. Um, if you look at like Lamona when we guided the overall capital for for your Mana, we were going to contribute this year.

Uh, we're at a stage now, where we, you know, unless the copper price rarely, uh, weakens we'll cover all the capitol this year for La mana and that brings that headline 2 billion dollars down materially, uh, going forward. And, you know, and what we we pointing to is that if you if you take Barracks 5 year plan,

It's easily fundable, uh, from the internal resources. And, uh, if you know, on the on the.

On the, um, sale of non-core assets. Uh, some of that will go to, as Graeme says, you can manage that process within our capital allocation guidelines. And, uh, some of it will go to share buybacks because it makes sense, as you're taking out production.

Some of it will will give back to shareholders because it's a extraordinary benefit. And I've always said in business, when you do something, you hadn't planned to do, you should share it with your uh owners and that's what we do. Um and uh and on the capital side, I think we're very comfortable in being able to fund our future.

And I would just point out something the market hasn't got its head around is, uh, is, uh, once we get to a point of being able to prove.

The financing, uh, of, uh, Rico deck. It takes away that, um, Market obsession with the, the, the gearing that people keep writing about. And so, we've got some fairly significant catalysts

Over the next, you know, almost every quarter going out until the start of 2028.

Great, thank you very much.

And Jessica Conic with Scotiabank. Your line is open. Please ask your question.

Tanya, your line is open. Please ask your question.

I believe that Tanya is having some audio issues; we can move on to the next question.

John tamasos with John tamasos. Very independent research. Your line is open, please. Ask your question.

Thank you very much.

Could you update us?

On your Canadian tax loss position.

Whether they expire at a particular point in time, American Wednesday sometime.

And how that interacts in the decision.

To sell hemlo.

Or maybe buy something to replace it.

Hi, John. It's, uh, it's Graham. We have, um...

Around 2 billion dollars of of sort of ordinary losses in another 2 billion dollars of capital losses. Um, they as a rule, they expire in around 20 years but some of them don't expire at all. So we have quite a lot of Headroom and runway on those tax losses. Um, and certainly in the context of the disposal.

Of Hemlo, they would certainly be useful in protecting the proceeds of that sale substantially.

thank you.

Our last question will come from Martin Prader with Veritas Investment Research. Your line is open; please ask your question.

Yes, thank you. Uh, my question is on Tanya. Um, what is the price at which you have to sell at 20%?

At-ed price, uh, we are, and that's the reason we hung back this quarter, just to get everything right. So we want to, uh, you know, we've made proposals of...

um,

Uh, getting the gold back from the Rand Refinery in a refined form or selling it into, uh, Tanzania to, uh,

Uh, other buyers. But, uh, our condition is it needs to go through the central bank.

And uh and with it uh is the agreement. We got agree on how we do, the check assays and the follow any disagreements. How are we going to do that? Uh, the positive side of that as we get a 3% benefit because we don't pay uh, duties on that uh, export because it's internal. So there is a significant death, these gold prices, uh, benefit for us and and so, as you know, we've got a, you know, an engage solid engagement with the government of Tanzania. And that's, that's what we're focusing in just to make sure that everyone is in agreement with how it works. And we got proper binding agreements,

And just 1 last question. If if you could share uh how advanced are you in the conversations about Tongan? Because I I've read in the news that there there was some offers and you know could we see something at the end of this call?

You know, the one thing I can say without fear of contradiction.

Don't listen to the.

Scuttlebug of the sum of these reporters.

Um,

As, you know, the, the these processes run us very controlled progress, led by our investment banking partners. And, uh, and we do not disclose, uh, where we are until the, the process is closed. We have, uh, we, we definitely engage with our host countries in the process. But it's, uh, you know, it's, it would be unprofessional to to leak or, or disclose the progress, or even the participants in this in such a process.

Thank you.

This concludes the Q&A. I will now turn the call back to Mark Bristow for closing remarks.

Well, thank you. Ladies and gentlemen, as I said, you know, not a particularly enthusiastic day for gold today, given the rumors of um, uh, uh.

Um, charges on gold bars that came out at the end of last week. But as a business, a solid performance on the back of.

A as the start that, uh, in Q1, um, a very clear destination in sight on delivering overall for the year. And again, I think this is a great example of.

Um, you know, the way we allocate Capital, the, the tremendous value that we've embedded in this, uh, organization and uh, and really it's, uh, it's when you when you grow nav. It's always a challenge to Daylight it, uh, much easier to do m&a. But that growth, that organic growth is where you really do create, uh, value in the mining industry and we extremely well, positioned to be able to deliver on that. So thank you again, for those who came and, uh, and and, uh, particularly in this nice London weather. And, uh, and for the rest, we'll see you. Hopefully at DEA and de Denver. And then after that, um, those who are joining us on the trip, uh, it'll be good to catch up. So, with that, uh, thank you very much again and speak to you soon.

This concludes today's event. Should you have any questions, please contact Barrick's Investor Relations department. Thank you for joining us.