Q1 2026 Barrick Mining Corp Earnings Call
Speaker #1: I will now turn the call over to Cleaviser, Head of Industry Relations. Please go ahead.
Speaker #2: Thank you, and good morning, everyone. I hope you've had an opportunity to review the press release we issued before the markets opened this morning.
Speaker #2: This presentation deck is also now available to download on our website. Presenting our results today are Mark Hill, BARRICK's President and CEO, and Helen Kai, Senior EVP and CFO.
Operator: Welcome everyone to Barrick's Q1 2026 results presentation. At this time, all participants are in listen-only mode. 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 Cleve Bricker, Head of Investor Relations. Please go ahead.
Speaker #2: Other members of BARRICK's management team will be available after our prepared remarks for Q&A. Before we begin, please note that we will be making forward-looking statements.
Speaker #2: This slide includes a summary of the significant risks and factors that could affect Barrick's future performance and our ability to deliver on these forward-looking statements.
Cleve Bricker: Thank you. Good morning, everyone. We hope you've had an opportunity to review the press release we issued before the markets opened this morning. This presentation deck is also now available to download on our website. Presenting our results today are Mark Hill, Barrick's President and CEO, and Helen Cai, Senior EVP and CFO. Other members of Barrick's management team will be available after our prepared remarks for Q&A. Before we begin, please note that we will be making forward-looking statements. This slide includes a summary of the significant risks and factors that could affect Barrick's future performance and our ability to deliver on these forward-looking statements. This material is also available on our website. I will now hand it over to Mark.
Speaker #2: This material is also available on our website. I will now hand it over to Mark. Thanks, Clay, and thank you all for joining us.
Speaker #2: We had a strong Q1 with excellent operating and financial results. Before we get into detail, I want to review the priorities for 2026 that we set at the start of the year.
Speaker #2: These are our priorities for achieving site-consistent, reliable delivery across our portfolio. The first is, obviously, safety. Our safety performance has not been where it needs to be.
Speaker #2: And by taking action to improve it. The second is operational delivery. We are on track to meet our production and cost targets. The third is growth.
Speaker #2: We are advancing our key organic opportunities, including PV. 2021 and 4 mile. And the fourth is the IPO of North American gold assets, which we believe will unlock significant value for our shareholders.
Mark Hill: Thanks, Cleve, and thank you all for joining us. We had a strong Q1 with excellent operating and financial results. Before I go into detail, I want to review the priorities for 2026 that we set at the start of the year. These are our priorities for achieving safe, consistent, reliable delivery across our portfolio. The first is obviously safety. Our safety performance has not been where it needs to be, and we're taking action to improve it. The second is operational delivery. We are on track to meet our production and cost targets. The third is growth. We are advancing our key organic opportunities, including PV, Lumwana, and Fourmile. The fourth is the IPO of North American gold assets, which we believe will unlock significant value for our shareholders. In Q1, we made steady progress in all four of these areas.
Speaker #2: In Q1, we made steady progress in all four of these areas. It was the second quarter in a row of improved delivery across the board.
Speaker #2: Most importantly, we improved safety. We performed well operationally, and we delivered gold production above guidance, production increased 4% year over year. We also came in below guidance at costs.
Speaker #2: Strong execution in the quarter allowed us to capture more of the high gold price and deliver strong financial results. A typical lender, double year over year, had a much higher, much free cash flow increased 320% year over year to 1.6 billion.
Speaker #2: And we ended the quarter with $2.4 billion of net cash. We advanced our growth projects. Our 100% owned Four Mile project continued to progress.
Mark Hill: It was the Q2 in a row of improved delivery across the board. Most importantly, we improved safety. We performed well operationally, and we delivered gold production above guidance. Production increased 4% year over year. We also came in below guidance on our costs. Strong execution in the quarter allowed us to capture more of the higher gold price and deliver strong financial results. Attributable EBITDA doubled year over year at a much higher margin. Free cash flow increased 320% year over year to $1.6 billion, and we ended the quarter with $2.4 billion of net cash. We advanced our growth projects. Our 100% owned Fourmile Project continued to progress. The Lumwana expansion advanced slightly ahead of schedule, and we are reviewing Reko Diq, as previously disclosed.
Speaker #2: The Long Island expansion advanced slightly ahead of schedule, and we are reviewing the record deck as previously disclosed. Finally, we move forward on the planned North American IPO, which are on track to complete by the end of this year.
Speaker #2: Our North American assets have their own dedicated leadership team, which has been working to get successful. Okay, I'd like now to spend some time reviewing our work on safety.
Speaker #2: We believe our safety performance operational performance are linked. Businesses perform better overall when they manage risks, have leaders in the field, and follow critical controls.
Speaker #2: Historically, Barrick focused on total recorded injuries. The company led the industry on that one metric, yet it did not adequately address the risks that can lead to serious injuries and fatalities.
Speaker #2: In Q4 of last year, we shifted our focus to identifying and eliminating the risks behind serious and fatal events. In Q1, we saw this change begin to work.
Mark Hill: We moved forward on the planned North American IPO, which we're on track to complete by the end of this year. Our North American assets have their own dedicated leadership team, which has been working together successfully. Okay, I would like now to spend some time reviewing our work on safety. We believe our safety performance and operational performance are linked. Businesses perform better overall when they manage risk, have leaders in the field, and follow critical controls. Historically, Barrick focused on total recordable injuries. The company led the industry on that one metric, yet it did not adequately address the risks that can lead to serious injuries and fatalities. In Q4 of last year, we shifted our focus to identifying and eliminating the risks behind serious and fatal events. In Q1, we saw this change begin to work.
Speaker #2: There was a meaningful reduction in significant and high-severity injuries. Sixty-three percent of all injuries during the quarter were classified as minor. Our reported lost time injuries also declined.
Speaker #2: Our leaders all the way after our executive committee are spending more time in the field, focusing more on leading indicators particularly critical control verifications.
Speaker #2: To be clear, though, we are still not where we need to be and had too many near misses during the quarter. We still have work to do, but we are making steady progress to fulfill our commitment to zero harm.
Speaker #2: It is now embedded in leadership behavior, operating routines, and decision-making at every level. Turning now to our Q1 highlights: Barrick produced 719,000 ounces of gold in the quarter, above guidance and an increase of 4% from a year ago.
Mark Hill: There was a meaningful reduction in significant and high-severity injuries. 63% of all injuries during the quarter were classified as minor. Our reported lost time injuries also declined. Our leaders all the way up to our executive committee are spending more time in the field. They are focusing more on leading indicators, particularly critical control verifications. To be clear, though, we are still not where we need to be and had too many near misses during the quarter. We still have work to do, but we are making steady progress to fulfill our commitment to zero harm. It is now embedded in leadership behavior, operating routines, and decision-making at every level. Turning now to our Q1 highlights. Barrick produced 719,000 ounces of gold in the quarter, above guidance and an increase of 4% from a year ago.
Speaker #2: There are three drivers: a 10% year-on-year increase in production in North America, along with strong performance at both Belledera, Lulu, and GOLD. On the carpet side, we produced 49,000 tons, in line with the plan.
Speaker #2: We managed costs with discipline, our gold cost per ounce came in better than planned, reflecting solid cost control and efficiencies, across both mining and process.
Speaker #2: Copper production increased 7% year over planned. The combination of volume, cost discipline, and favorable realized pricing posed substantial increase in earnings and cash flow, which has meant that today we are now at a quarterly dividend of 17.5 cents per share and a $3 billion share buyback.
Speaker #2: In Q1, we had strong performance across all our regions, North America continued to anchor our world-class portfolio, NGM and PV, both registered year over year growth.
Mark Hill: There were 3 drivers, a 10% year-on-year increase in production in North America, along with strong performance at both Veladero and Loulo-Gounkoto. On the copper side, we produced 49,000 tons in line with the plan. We managed costs with discipline. Our gold cost per ounce came in better than planned, reflecting solid cost control and efficiencies across both mining and processing. Copper production increased 11% year over year. C1 cash costs were lower than our plan. The combination of volume, cost discipline, and favorable realized pricing drove substantial increase in earnings and cash flow, which has meant that today we announced a quarterly dividend of $0.175 per share and a $3 billion share buyback. In Q1, we had strong performance across all our regions. North America continued to anchor our world-class portfolio.
Speaker #2: Together, they accounted for 57% of our triple EBITDA at a margin of nearly 70%. Our other regions also delivered strong gold production with meaningful attributable EBITDA at margins of 65%.
Speaker #2: Copper is performing well and is an important part of the growth driver for Barrick. Our portfolio provides near-term cash flow and longer-term organic growth.
Speaker #2: As I mentioned, NGM is on track and performing well. It was a core contributor to our operational and financial performance. The productivity improvements we highlighted last quarter continued through Q1.
Speaker #2: Highland process and turquoise rich underground mines delivered their highest tonnage since the joint venture has performed. We are now on track to achieve record underground tons mined for this year.
Speaker #2: That is an important leading indicator that speaks to both mine productivity and the reliability of execution underground. Our processing plants performed equally well. The Highland process achieved their highest Q1 production since 2022.
Mark Hill: NGM and PV both registered year-over-year growth. Together, they accounted for 57% of our attributable EBITDA at a margin of nearly 70%. Our other regions also delivered strong gold production with meaningful attributable EBITDA at margins of 65%. Copper is performing well, and it is an important part of the growth driver for Barrick. Our portfolio provides near-term cash flow and longer-term organic growth. As I mentioned, NGM is on track and performing well. It was a core contributor to our operational and financial performance. The productivity improvements we highlighted last quarter continued through Q1. Carlin, Cortez, and Turquoise Ridge underground mines delivered their highest tonnages since the joint venture was formed. We are now on track to achieve record underground tons mined for this year. That is an important leading indicator that speaks to both mine productivity and the reliability of execution underground.
Speaker #2: The Sage Oil coal achieved its highest quarterly triple since 2021. And we achieved these increases in both volume and productivity while continuing to improve safety.
Speaker #2: As I said, they work together. I also want to highlight the ongoing regular and constructive dialogue with Q1 and our NGM PV partner about NGM performance, the timeline of the Vendor 4 Mile, and the IPO.
Speaker #2: Lulu and CODA also had an excellent quarter. The ramp-up progressed ahead of schedule. Both mining and processing outperformed the restart plan, which speaks to strengths of both the asset and their execution.
Speaker #2: We are prioritizing the high-grade underground ore that will contribute more in the near term. At the same time, we are presenting future optionality in our tips.
Speaker #2: The team reported zero safety and personal environmental incidents during the quarter. Financially, Lulu and CODA made an earlier-than-expected contribution to Barrick's quarterly attributable EBITDA, already a meaningful result at this stage of the ramp-up.
Mark Hill: Our processing plants performed equally well. The Carlin roasters achieved their highest Q1 production since 2022. The Sage autoclave achieved its highest quarterly throughput since 2021. We achieved these increases in both volume and productivity while continuing to improve safety. As I said, they work together. I also want to highlight that we remain in regular and constructive dialogue with Newmont, our NGM JV partner, about NGM performance, the timeline of the Fourmile and the IPO. Loulo-Gounkoto also had an excellent quarter. The ramp-up progressed ahead of schedule. Both mining and processing outperformed the restart plan, which speaks to the strengths of both the asset and our execution. We are prioritizing the higher-grade underground ore that will contribute more in the near term. At the same time, we are preserving future optionality in the open pits.
Speaker #2: Turning to our organic growth pipeline, Long Island is our copper growth project in Zambia. Once complete, the mill expansion will increase throughput from 27 to 52 million tons a year.
Speaker #2: Increasing copper production by 100% from 117,000 to 240,000 tons annually. The project is on track to come in towards the low end of the 2026 capital guidance and on track for the original budget of $2 billion.
Speaker #2: During the quarter, the initial lift of the mill building was completed. Mill shells were delivered, and the first shipment of structural steel arrived from Milwaukee South.
Speaker #2: We expect to produce our first copper from the expansion by Q1 2028. Our Fourmile project in Nevada continues to demonstrate its potential to become a Tier 1 gold asset, and activity continues throughout the winter.
Mark Hill: The team reported zero safety and first-line environmental incidents during the quarter. Financially, Loulo-Gounkoto made an earlier-than-expected contribution to Barrick's quarterly attributable EBITDA, already a meaningful result at this stage of the ramp-up. Turning to our organic growth pipeline. Lumwana is our copper growth project in Zambia. Once complete, the mill expansion will increase throughput from 27 to 52 million tons per year, increasing copper production by 100% from 117 to 240,000 tons annually. The project is on track to come in towards the lower end of the 2026 capital guidance and on track for the original budget of $2 billion. During the quarter, the initial lift of the mill building was completed, mill shells were delivered, and the first shipments of structural steel were on their way to site.
Speaker #2: We plan to expand drilling through 2026 and to complete the PFS studies by 2028. You can see the quality of the inception grade outside of the existing resource on the slide.
Speaker #2: Finally, we are on track to complete the proposed IPO of our North American gold assets by the end of 2026. As I said, the region has a dedicated team and has been working together very well for several months.
Speaker #2: They can focus completely on North America without the competing priorities that came from running broader multinational portfolios. We believe that the focus should translate to further improvements in performance.
Speaker #2: We will continue to update the market on the IPO and make further progress. So I would now like to introduce Hankai, our CFO, who will review our financial performance.
Speaker #2: Highland, over to you.
Mark Hill: We expect to produce our first copper from the expansion by Q1 2028. Our Fourmile project in Nevada continued to demonstrate its potential to become a tier 1 gold asset. Drilling activity continued throughout the winter. We plan to expand drilling through 2026 and to complete the PFS studies by 2028. You can see the quality of the interception grade outside of the existing resource on the slide. Finally, we are on track to complete the proposed IPO of our North American gold assets by the end of 2026. As I said, the region has a dedicated team and has been working together very well for several months. They can focus completely on North America without the competing priorities that came from running broader multinational portfolio. We believe that the focus should translate to further improvements in performance.
Speaker #1: Thank you, Mark, and good morning, everyone. At a high level, this was a quarter in which strong production, disciplined cost performance, and a supportive gold price environment combined delivered outstanding financial results.
Speaker #1: We saw potential growth in earnings, significant margin expansion, and robust free cash flow generation, while also strengthening an already solid balance sheet. What is important is that these results were not driven by price alone.
Speaker #1: The higher gold price clearly helped, but it amplified improvements already occurring in the business. Better operating performance, cost discipline, portfolio optimization, and stronger cash flow efficiency—this is what gives these results real quality and durability.
Speaker #1: Turning to the numbers, gold production from continuing operations increased 4% year over year. Combined with the 66% increase in our realized gold price, that dropped the very strong financial performance mark already touched on.
Mark Hill: We will continue to update the market on the IPO as we make further progress. I would now like to introduce Helen Cai, our CFO, who will review our financial performance. Helen, over to you.
Speaker #1: Adjusted net earnings rose 173% year on year and attributable EBITDA increased 103%. Attributable free cash flow—which is the measure we use as the basis for our dividend policy—increased 195% year over year to 1.2 billion dollars in the quarter.
Helen Cai: Thank you, Mark, and good morning, everyone. At a high level, this was a quarter in which strong production, disciplined cost performance, and a supportive gold price environment combined to deliver outstanding financial results. We saw substantial growth in earnings, significant margin expansion, and robust free cash flow generation, while also strengthening an already solid balance sheet. What is important is that these results were not driven by price alone. The higher gold price clearly helped, but it amplified improvements already occurring in the business. Better operating performance, cost discipline, portfolio optimization, and stronger capital efficiency. This is what gives these results real quality and durability. Turning to the numbers, gold production from continuing operations increased 4% year-over-year. Combined with the 66% increase in our realized gold price, that drove the very strong financial performance Mark already touched on.
Speaker #1: These very strong results reflect both the operational progress in the business and the leverage our portfolio has to higher quality prices when we execute well.
Speaker #1: We closed Q1 with 2.4 billion dollars of net cash on the balance sheet, giving us flexibility to continue investing in our highest return opportunities.
Speaker #1: Taken together, I would describe the quarter as one of strong earnings quality, with strong cash conversion. Capital allocation is a major priority particularly in the environment where the business is generating significant free cash flow.
Speaker #1: We have a clear framework for deploying capital to sustain and grow our business and provide returns to shareholders. Ensuring our balance sheet remains strong and flexible.
Helen Cai: Adjusted net earnings rose 173% year on year, and attributable EBITDA increased 103%. Attributable free cash flow, which is the measure we use as the basis for our dividend policy, increased 195% year over year to $1.2 billion in the quarter. These very strong results reflect both the operational progress in the business and the leverage our portfolio has to higher commodity prices when we execute well. We closed Q1 with $2.4 billion of net cash on the balance sheet, giving us flexibility to continue investing in our highest return opportunities. Taken together, I would describe the quarter as one of strong earnings quality with strong cash conversion. Capital allocation is a major priority, particularly in an environment where the business is generating significant free cash flow.
Speaker #1: This framework is designed to be sustainable through the cycle. Our first priority is balance sheet strength. With 2.4 billion of net cash and an underwritten $3 billion revolving credit facility, and no meaningful debt due until 2033, we are already in a favorable position.
Speaker #1: Our second priority is earnings accrued growth. Which includes sustaining and growth capital. Iwana and 4-mile are two clear examples. Where we are deploying capital into organic opportunities that we believe will generate superior returns.
Speaker #1: More broadly, we intend to identify similarly earnings accrued opportunities in the future to strengthen our growth profile while retaining discipline in how and when we deploy capital.
Speaker #1: It is not only about growth, for its own sake. It is about creating value over time. Our third priority is returning cash to shareholders.
Speaker #1: Our new dividend policy implemented last quarter provides for our quarterly base dividend of 70.5 cents per share, topped up at year-end to target a total payout of 50% of attributable free cash flow.
Helen Cai: We have a clear framework for deploying capital to sustain and grow our business and provide returns to shareholders while ensuring our balance sheet remains strong and flexible. This framework is designed to be sustainable through the cycle. Our first priority is balance sheet strength. With 2.4 billion of net cash and an undrawn $3 billion revolving credit facility and no meaningful debt due until 2033, we are already in a favorable position. Our second priority is earnings accretive growth, which includes sustaining and growth capital. Lumwana and Fourmile are 2 clear examples where we are deploying capital into organic opportunities that we believe will generate superior returns. More broadly, we intend to identify similarly earnings accretive opportunities in the future to strengthen our growth profile while remaining disciplined in how and when we deploy capital.
Speaker #1: This quarter followed solid execution, strong free cash flow, and the value embedded in the stock. The board also approved a $3 billion share buyback authorization that further amplifies our total return to shareholders.
Speaker #1: Since 2021, Barrick has returned $7.9 billion to shareholders, including $697 million in Q1 2026 and $2.4 billion in 2025. Our capital allocation framework is disciplined, flexible, and designed to work throughout the cycle.
Speaker #1: It supports reinvestment in the business, allows its growth, protects the balance sheet, and creates a clear pathway for returning excess cash to shareholders. With that, I will turn the call back over to Mark.
Speaker #2: Thank you, Helena. At 2026, production and cost goals remain unchanged. For the second quarter, we expect gold production to be in the range of 730,000 to 770,000 ounces.
Helen Cai: This is not only about growth for its own sake, it is about creating value over time. Our third priority is returning cash to shareholders. Our new dividend policy, implemented last quarter, provides for a quarterly base dividend of $0.175 per share, topped up at year-end to target a total payout of 30% of attributable free cash flow. This quarter, following solid execution, strong free cash flow, and the value in Barrick stock, the board also approved a 3 billion share buyback authorization that further amplifies our total return to shareholders. Since 2021, Barrick has returned $7.9 billion to shareholders, including $697 million in Q1 2026, and $2.4 billion in 2025. Our capital allocation framework is disciplined, flexible, and designed to work throughout the cycle.
Speaker #2: Which is above Q1 and consistent with our plan. We also expect high production in the third and fourth quarters, which is typical for our business.
Speaker #2: For copper, we expect high production in the second half of the year and the first half. We'll continue to focus on controlling costs, capital intensity, and productivity.
Speaker #2: Based on what we see today, we remain confident in our ability to deliver a full-year commitment. So, to conclude, I want to reinforce our four priorities.
Speaker #2: All of which we have made steep progress on in Q1. We improved safety, although we do realize we still have a lot of work to do.
Speaker #2: We improved operational consistency and cost discipline, and delivered on guidance for Q1. We advanced PV, Lumwana, and Fourmile on schedule and on budget. We advanced our North American IPO on schedule.
Speaker #2: And we are on track to execute successfully against all of these four priorities by year-end. So, Barrick historically has been criticized for not delivering on its commitments.
Helen Cai: It supports reinvestment in the business, advances growth, protects the balance sheet, and creates a clear pathway for returning excess cash to shareholders. With that, I will turn the call back over to Mark.
Speaker #2: So I just want to highlight that this is the second quarter that we have delivered on all of our commitments to our shareholders. Our portfolio is performing with increased resilience, our strategic projects are advancing, our balance sheet is strong, and we're on track to achieve our 2026 guidance.
Mark Hill: Thank you, Helen. Our 2026 production and cost guidance remain unchanged. For Q2, we expect gold production to be in the range of 730,000 to 770,000 ounces, which is above Q1 and consistent with our plan. We also expect high production in Q3 and Q4, which is typical for our business. For copper, we expect high production in H2 of the year than H1. We'll continue to focus on controlling costs, capital intensity, and productivity. Based on what we see today, we remain confident in our ability to deliver our full-year commitments. To conclude, I want to reinforce our four priorities, all of which we have made steady progress on in Q1. We improved safety, although we do realize we still have a lot of work to do.
Speaker #2: I'll now hand back to the moderator for Q&A.
Speaker #1: Thank you for the Q&A session we'll use the raise hand feature in Zoom. If you'd like to ask a question, click on the raise hand button at the bottom of your screen.
Speaker #1: Once prompted, please unmute yourself and go ahead. We'll now pause for a moment to assemble the queue. Our first question comes from Tanya to disconnect Scotiabank.
Speaker #1: Your line is open. Please unmute and ask your question. Tanya, your line is open. Please unmute and ask your question. We will move on to the next question.
Speaker #1: Tanya, please raise your hand if you would like to. Our next question comes from Daniel Major at UBS. Your line is open. Please unmute and ask your question.
Mark Hill: We improved operational consistency and cost discipline and delivered on guidance for Q1. We advanced PV, Lumwana, and Fourmile on schedule and on budget. We advanced our North American IPO on schedule, and we are on track to execute successfully against all of these four priorities by year-end. Barrick historically has been criticized for not delivering on its commitments. I just wanna highlight that this is the second quarter that we have delivered on all of our commitments to our shareholders. Our portfolio is performing with increased resilience, our strategic projects are advancing, our balance sheet is strong, and we are on track to achieve our 2026 guidance. I'll now hand back to the moderator for Q&A.
Speaker #3: Hi, can you hear me okay?
Speaker #2: Yes, we can hear you.
Speaker #3: Can you hear me? Great. Hi, Mark. Hi, Helen. Yeah, a few questions. Yeah, the first one just on record deck. You've put the guidance for the full year down to the lower end of the range in terms of CapEx.
Speaker #3: How should we think about the kind of run rate of quarterly CapEx going through the balance of the year—is the first part of the question.
Speaker #3: The second is, what's the estimated holding cost of the projects on an annualized or quarterly basis at care and maintenance? And I guess the third part is, what would you need to see to conclude that this is a project that you feel comfortable committing the remaining CapEx to build the project?
Cleve Rueckert: Thank you. For the Q&A session, we'll use the raise hand feature in Zoom. If you'd like to ask a question, click on the raise hand button at the bottom of your screen. Once prompted, please unmute yourself and go ahead. We'll now pause for a moment to assemble the queue. Our first question comes from Tanya Jakusconek at Scotiabank. Your line is open. Please unmute and ask your question. Tanya, your line is open. Please unmute and ask your question. We will move on to the next question. Tanya, please re-raise your hand if you would like to. Our next question comes from Daniel Major at UBS. Your line is open. Please unmute and ask your question.
Speaker #2: Okay, thanks, Daniel. So, on record deck was the budget statement. So we will be finishing some of those works we've already started. So those contracts will continue on whilst we do this 12-month review.
Speaker #2: So the year's budget will still come in on that range. Look, the run rate when we are doing this review on top is about $20 million a month.
Speaker #2: And that's probably a bit of a rough number at this stage, but we're still refining that. But you can shimmer around that number. And a good question.
Speaker #2: What do you need to see? So, what we did is, we went into this review. There were some things that we had to address, right?
Speaker #2: Now, we're having issues with the contractors on site, and we've had several force majeure notices. So, the first thing is, we had to understand the contracting strategy and how we're going to make this successful.
Daniel Major: Hi, can you hear me okay?
Speaker #2: It's obvious we can't continue on that, and that was due to some security concerns and what's going on in the region as well. So we're working on how we'll rectify that.
Mark Hill: Yes, we can hear you.
Daniel Major: Great. Hi, Mark. Hi, Helen. A few questions. The first one, just on Reko Diq. You've pulled the guidance for the full year down to the lower end of the range in terms of CapEx. How should we be thinking about the kind of run rate of quarterly CapEx going through the balance of the year? Is the first part of the question. The second is, what is the estimated holding cost of the project on an annualized or a quarterly basis at care and maintenance? I guess the third part is, what would you need to see to conclude that this is a project that you feel comfortable committing the remaining CapEx to build the project?
Speaker #2: So, the package and government—and our chairman was just there, actually, yesterday—are making progress on those discussions. And then, obviously, the other thing is I just want to bring up the capital and see where we are with that, and if there've been any large shifts in the capital.
Speaker #2: And once we get the answers to all that, I can make an informed decision. I know I've been criticized. I will be cautious, but I think for a project like this, it's important for all the shareholders, including the ones in Pakistan, that we actually understand where we are so that we can be successful going forward.
Speaker #2: Yeah. Is that everything you wanted, Daniel?
Speaker #3: Yeah, I think so. So just, yeah, to clarify on that. If there's a situation beyond this year that you cannot commit to continuing, it would be about $20 million a month just to hold it on care and maintenance.
Mark Hill: Okay. Thanks, Daniel. On record of the budgeted staying tech. We will be finishing some of those works that we've already started. Those contracts will continue on whilst we do this 12-month review. The year's budget will still come in on that range. Look, the run rate when we are doing this review on top is about $20 million a month, and that's probably a bit of a rough number at this stage, but we're still refining that. You can assume it's around that number. A good question, what do we need to see? What we did is when we went into this review, there were some things that we had to address right now. We're having issues with the contractors on site, and we've had several force majeure notices.
Speaker #3: Is that correct?
Speaker #2: Yes. That's approximately what the number would be.
Speaker #3: Yes. Okay.
Speaker #2: That would be through these contracts that we're wanting.
Speaker #3: Yeah. Okay. And then my second question maybe one for Helen. Just on the balance sheet and the distribution policy. So nice to see you've added buyback in, but a couple of elements to it.
Speaker #3: I'm assuming your 50% commitment to the dividend is independent of whether you do buybacks or not. Or is that 50% a cash return commitment as the first part?
Speaker #3: And then the second part, you've got 2.4 billion of cash on the balance sheet. What is the level at which you'd be willing to commit 100% of free cash flow in capital returns?
Speaker #3: And what is the disadvantage of setting a net cash target?
Mark Hill: The first thing is we have to understand the contracting strategy and how we're going to make this successful, because obviously we can't continue on that, and that was due to some security concerns and what's going on in the region as well. We're working on how we'll rectify that with the Pakistan government. Our chairman was just there actually yesterday and making progress on those discussions. Obviously the other thing is I just want to rerun the capital and see where we are with that and if there's been any large shifts in the capital. Once we get the answer to all that, I can make an informed decision.
Speaker #1: Thank you, Dan. On your first question, the 50% attributable free cash flow policy was just introduced in Q4 last year, and we maintain that policy.
Speaker #1: That means at year-end, we will use attributable operating cash flow minus attributable CapEx to derive the attributable free cash flow. And then 50% of that will be used for the top-up dividend in the fourth quarter.
Speaker #1: So that will not affect or be impacted by any of the buyback program that we just announced today. Is that clear on that before I move to your second question?
Mark Hill: I know I've been criticized for being overly cautious, but I think on a project like this, it's important for all the shareholders, including the ones in Pakistan, that we actually understand where we are so that we can be successful going forward. Does that answer everything you wanted, Daniel?
Speaker #3: Yeah, that's good. Thank you.
Speaker #1: Okay. So your second question is about setting up a target on the balance sheet. We had a balance sheet-based target before, and we moved to the free cash flow-based policy last quarter.
Daniel Major: Yeah, I think so. just, yeah, to clarify that. If there's a situation beyond this year that you cannot commit to continuing, it would be about $20 million a month just to hold it on care and maintenance. Is that correct?
Speaker #1: So right now, we are taking just a flexible sense given the strong cash flow and strong balance sheet. We announced this $3 billion, and we will see the market window whenever appropriate.
Speaker #1: We'll execute on our buyback program.
Mark Hill: Yes. That's approximately about the number of business.
Daniel Major: Yeah. Okay.
Mark Hill: After we get through these contracts we're winding up.
Speaker #3: Okay. Thank you.
Daniel Major: Yeah. Okay. My second question, maybe one for Helen, just on the balance sheet and the distribution policy. Nice to see you've added the buyback in, but a couple of elements to it. I'm assuming your 50% commitment to the dividend is independent of if you do buybacks or not, or is that 50% a cash return commitment? That's the first part. The second part, you've got $2 billion of cash on the balance sheet. What is the level at which you would be willing to commit 100% of free cash flow in capital returns? What is the disadvantage of setting a net cash target?
Speaker #1: Yeah. Thank you.
Speaker #3: Yeah. Maybe so in terms of $3 billion, should we look at that as something that in an OLC, you would is it an option, or is it kind of something we would expect you to buy stock through the year?
Speaker #3: If we're in the same kind of range as we are today.
Speaker #1: I think that decision is based on our strong balance sheet and cash flow generation as well as the value we see in various shares.
Speaker #1: So we are launching the program to carry it on throughout the year.
Speaker #3: Okay. Thank you.
Speaker #1: Thank you.
Speaker #4: For our next question, we'll return to Tanya Jakuskina from Scotiabank. Your line is open. Please unmute and ask your question.
Helen Cai: Thank you, Dan. On your first question, the 50% attributable free cash flow policy was just introduced in Q4 last year, and we maintained that policy. That means at year-end, we will use attributable operating cash flow minus attributable CapEx to derive the attributable free cash flow. Then 50% of that will be used for top-up dividend in Q1. That will not affect or be impacted by any of the buyback program that we just announced today. Is that clear on that before I move to your second question?
Speaker #2: Hello?
Speaker #4: Tanya, your line is open. Please unmute and ask your question. All right, for now, we will move forward. Our next question.
Speaker #2: Sorry. Can I just stop right? Can I just say, Tanya, if you want to flex your questions, I don't know why we can't hear you.
Speaker #2: But if you want to flex the questions on email and I will answer them at the end.
Speaker #4: Thank you. Our next question comes from Josh—excuse me—Wolfson at RBC. Your line is open. Please unmute and ask your question.
Daniel Major: Yeah, that's clear. Thank you.
Helen Cai: Okay. Your second question is about setting up a target on the balance sheet. We had a balance sheet-based target before, and we moved to the free cash flow-based policy last quarter. Right now we are taking just a flexible stance, given the strong cash flow and strong balance sheet. We announced this $3 billion, and we will see the market window. Whenever appropriate, we will execute our, you know, buyback program.
Speaker #5: Yeah. Thank you very much, operator. Just going into some of the operating details first off at NGMR, you sort of talked about a bunch of the factors that caused the performance in the first quarter.
Speaker #5: I'm wondering what's the ability for the company to extend some of these positive results into the second quarter and maybe the second half of the year and maybe embed within its second quarter guidance?
Speaker #5: Is there any additional information on how NGM fits in there? Thank you.
Daniel Major: Okay. Thank you.
Helen Cai: Yeah. Thank you.
Speaker #2: Yeah. Okay. Thanks, Josh. Look, on the NGM performance, so there is a thing I want to highlight because we're discussing this about guidance. So you're remembering Q4 when the team said, "Look, we're going to try and not pull down all the inventory out of all the circuits at the end of the year." So we didn't do that.
Daniel Major: Yeah. Maybe I mean, in terms of the $3 billion, should we look at that as something that in all else equal, you would Is it an option or is it kind of something we would expect you to be buying back stock, you know, through the year, if we're in the same kind of range as we are today?
Speaker #2: We actually did give us a boost in Q1 that we didn't expect or we didn't plan for ourselves is the right way to put it.
Helen Cai: I think that is that decision is based on our strong balance sheets and cash flow generation as well as the value we see in Barrick shares. We are launching this program to carry it on throughout the year.
Speaker #2: And the increases in performance, some of them were already built in. So I mentioned the team had done a good job realizing those. It doesn't change the outlook for the year.
Speaker #2: And I don't know, Tim, if you want to make any other comments on that, but.
Daniel Major: Okay. Thank you.
Speaker #5: I think you covered markets really bad, focused on operating discipline and performance to plan. And I would think if you can deliver on that, you do lead to delivering on efficiency improvements as it goes.
Helen Cai: Thank you.
Cleve Rueckert: For our next question, we will return to Tanya Jakusconek from Scotiabank. Your line is open. Please unmute and ask your question. Tanya, your line is open. Please unmute and ask your question. All right. For now, we will move forward. Our next question comes.
Speaker #5: As you said, the plans, where it stands, the rest of the year.
Speaker #2: All right. Thank you.
Speaker #5: Reasonably happy to have some follow-up questions for the team.
Speaker #2: Let me just say something else. Look, there's a process where we've given all the autonomy back to that region, and we've had a focus on it.
Speaker #2: And we have had separate management teams. I will admit that the results have come quicker than I expected. So if we'll let us get through Q2 and just see where we're tracking after that.
Mark Hill: Sorry, can I just operate? Can I say, Tanya, if you wanna flick your questions, I don't know why we can't hear you, but if you wanna flick us your questions on email and I will answer them at the end.
Speaker #5: All right. Looking forward to that. On Lulo, you had talked about the underground ramp-up going faster than expected. In light of some of the uncertainties in Bali and some of the news on contractor changes, I guess first, should we expect to see improvements in the asset into the second quarter?
Cleve Rueckert: Thank you. Our next question comes from Josh Wolfson at RBC. Your line is open. Please unmute and ask your question.
Josh Wolfson: Yeah, thank you very much, operator. Just going into some of the operating details. First off, at NGM, Mark, you sort of talked about a bunch of the factors that caused outperformance in Q1. You know, I am wondering what's the ability for the company to extend some of these positive results into Q2 and maybe the H2 of the year and maybe embed within that Q2 guidance. Is there any additional information on how NGM fits in there? Thank you.
Speaker #5: And then more broadly, what should our expectations be under this new operating plan for this asset on the steady state basis?
Speaker #2: Okay. I'll just give you the high-level update. So yes, you're right. It ramped up quicker than expected, and it will reach its full potential by the end of the year as we planned.
Speaker #2: So that remains unchanged. And then, once we get to steady state, you can expect 100%—I think 600-plus thousand ounces, whatever it was before we went into the care and maintenance stage.
Mark Hill: Thanks, Josh. Look, on the NGM performance, there is a thing I wanna highlight because we're discussing this about guidance. You're remembering Q4 when the team said, Look, we're gonna try and not pull down all the inventory out of all the circuits at the end of the year. We didn't do that, which actually did give us a boost in Q1 that we didn't expect or we didn't plan for, I suppose, is the right way to put it. The increases in performance, some of them were already built in, I mean, Tim and the team have done a good job of realizing those. It doesn't change the outlook for the year. I don't know, Tim, if you wanna make any other comments on that.
Speaker #2: But look, it's progressing well. And I'm just going to hand over to Seth. I don't know if he's got some other comments for Josh.
Speaker #6: Yeah. Maybe, Josh, on the look on contractor change, we were aware that DGP was planning to exit. But it's also tied into our strategy to replace it with a local contractor.
Speaker #6: So we expect to replace that contract by the end of the year and resume that part of the open buy plan. As you say, our underground have ramped up nicely.
Speaker #6: Our other open bids are performing, so there's no impact to the plan, and you will see a step up. And I think just on the options, Lulo still remains a strong contributor to the bottom line.
[Company Representative] (Barrick): No, I think you've covered it, Mark. It's really that focus on operating discipline and conformance to plan. I do think if you can deliver on that, you do lead to delivering on efficiency improvements as it goes. As you said, the plan's where it stands the rest of the year.
Speaker #6: It's a strong contributor to our production profile, and so as we ramp this up, we'll, of course, continue to assess the full range of the strategic alternatives on this asset.
Speaker #2: Thanks, Seth.
Josh Wolfson: Go ahead, thank you.
Mark Hill: Josh, you happy with that?
Speaker #5: Thank you.
Josh Wolfson: Reasonably happy. I may have some follow-up questions with the team.
Speaker #4: And a reminder, if you would like to ask a question, please click on the 'raise hand' button at the bottom of your screen. Our next question comes from Bennett Moore with JP Morgan.
Mark Hill: Well, let me just say something else. Look, this process where we've given all the autonomy back to that region, and we've had a focus on it, and we have had separate management teams. I will admit that the results have come quicker than I expected. Let us get through Q2 and just see where we're tracking after that.
Speaker #4: Your line is open. Please unmute and ask your question.
Speaker #3: All right. Good morning. Can you hear me all right?
Speaker #2: Yeah, we can hear you better. Thanks.
Speaker #3: Great, thanks for taking my questions, and congrats on the new role. I wanted to start with the broader strategy. In the recent shareholder letter, it relates to reducing risk exposure in this jurisdiction and targeted acquisitions.
Josh Wolfson: All right. Looking forward to that. On Loulo, you talked about the underground ramp up going faster than expected. You know, in light of some of the uncertainties in Mali and some of the news on contractor changes, I guess first, you know, should we expect to see improvements in the asset into Q2? More broadly, I mean, what should our expectations be under this new operating plan for this asset on a steady state basis?
Speaker #3: Could you speak a bit to your framework on both? How do you go about determining which assets might be best suited for investment advice for the acquisition, then for the latter?
Speaker #3: Is there any preference between gold and copper?
Speaker #2: Okay, Bennett, I think on the de-risking, obviously we're trying to focus our growth in a more stable area—right?—where we have more certainty around the mining regime and the ability to operate without a lot of interference.
Mark Hill: Well, I'll just give you the high level update. Yes, you're right, it ramped up quicker than expected, and it will reach its full potential by the end of the year as we planned, so that remains unchanged. Once we get to steady state, then you can expect 100%, I think 600 plus thousand ounces, whatever it was before we went into the care and maintenance stage. Look, it's progressing well, and I'm just gonna hand over to Seb, I know he's got some other comments for Josh there.
Speaker #2: So with that, the list of the countries I mean, obviously, you can see what's happened in Africa recently, which countries, but obviously, not the ideal for investment.
Speaker #2: And then, about—I suppose non-core assets is what you meant by the second part of that question, Bennett.
Speaker #3: Yep.
Speaker #2: Okay. So, non-core assets—I mean things like Koga, where we have a minority stake in it, 24%, and we obviously tend to consider the amount of management time on it.
[Company Representative] (Barrick): Yeah, maybe, Josh, on the contractor change, we were aware that DGP was planning to exit. It also tied into our strategy to replace it with a local contractor. We expect to replace that contract by the end of the year and resume that part of the open pit mine plan. As you say, our undergrounds have ramped up nicely. Our other open pits are performing, there's no impact to the plan, and you will see a step up. I think, just on the options, Loulo still remains a strong contributor to the bottom line. It's a strong contributor to our production profile.
Speaker #2: So something like that would be considered non-core. At this stage, and from where we are now, that would be where I end it.
Speaker #3: All right. Thanks for that, and I appreciate the sensitivity on diesel. Can you remind us which operations are most exposed and what inventory buffers look like, so we can get a better gauge for the cadence and potential impacts moving forward?
Speaker #2: Okay. I can't remember what we had in a sec, but the sensitivity, obviously, is $12 per ounce for every $10 move in the oil price.
Speaker #2: As far as supply, we went through this yesterday as well. So, as far as supply goes, we are well covered everywhere. So the supply is not going to be an issue.
[Company Representative] (Barrick): As we ramp this up, we'll of course continue to assess the full range of the strategic alternatives on this asset.
Speaker #2: It's just going to be a knock-on effect on the cost per ounce. So I don't we're at no risk of running out of diesel.
Mark Hill: Thanks, Seb.
Josh Wolfson: Thank you.
Cleve Rueckert: As a reminder, if you would like to ask a question, please click on the raise hand button at the bottom of your screen. Our next question comes from Bennett Moore with JP Morgan. Your line is open. Please unmute and ask your question.
Speaker #2: So that's the question.
Speaker #3: Okay. Much appreciated. Best of luck.
Speaker #2: Thanks, Bennett.
Speaker #4: Our next question comes from Anita Soni at CIBC World Markets. Your line is open. Please unmute and ask your question.
Bennett Moore: Hi, good morning. Can you hear me all right?
Mark Hill: Yeah, we can hear you, Bennett. Thanks.
Speaker #7: Hi. Can you hear me?
Bennett Moore: Great. Thanks for taking my questions. Helen, congrats on the new role. I wanted to start with the broader shift in strategy outlined in the recent shareholder letter as it relates to reducing high risk exposure in those jurisdictions and targeted acquisitions. Could you speak a bit to your framework on both? How do you go about determining which assets might be best suited for divestment and vice versa for acquisitions? For the latter, is there any preference between gold and copper?
Speaker #2: Yeah. We can hear you, Anita. Thanks.
Speaker #7: That's good. Not that I can figure out the unmute button. But a couple of questions. So, firstly, have you experienced any issues with contractor shipments coming out of Zambia at this point?
Speaker #7: In terms of port restrictions, something like that?
Speaker #2: Not that I'm aware of. Zambia View, can you answer that?
Speaker #6: No, look, all of our contractors—we start locally. So, it hasn't been an issue. And I'm not aware of any issues with the product export on there.
Mark Hill: Okay. Bennett, I think on the de-risking, obviously, we're trying to focus our growth in more stable areas, right? Where we have more certainty around the mining regime and the ability to operate without a lot of interference. Without going through the actual list of the countries, I mean, obviously there you can see with what's happened in Africa recently, which countries would obviously not be ideal for investment. Then about, I suppose non-core assets is what you meant by the second part of that question, Bennett?
Speaker #6: So no, haven't had problems.
Speaker #7: Yeah, moving to GB. The tonnage there—I think I had only a 15-day shutdown—but that tonnage was fairly low for Q2. Could you just talk about the tonnage or the throughput rate at PB?
Speaker #2: Okay. Let me hand it over to Tim. Tim, can you answer it?
Speaker #8: Yeah, thanks, Matt. Anita, I think the important thing at PB is we updated the metallurgy model and shared that in the updated technical report.
Speaker #8: Part of that work, and I mentioned the last quarter, is we're working with HAC on how we can further improve this. So in addition to the outages, which happened during the month, as well as some power interruptions, which the team experienced, there is also a body of work going on with HAC, and our team around how we can further optimize this recovery going forward.
Bennett Moore: Yep.
Mark Hill: Okay. Non-core assets, I mean, things like Porgera. I mean, we have a minority stake in it at 24%, and we obviously spend a considerable amount of management time on it. Something like that would be considered non-core at this stage. From where we are now, that would be where I end it.
Speaker #8: So you're really seeing a combination of the power, the outage, the shutdown work, and this improvement program work together in that number. But as you can see, the recovery has come up from where it was a year ago, and I think we have some optimistic programs to try and lift ourselves further from where we are on that recovery.
Bennett Moore: All right. Thanks for that. Appreciate the sensitivity on diesel. Wondering if you could remind us which operations are most exposed, what inventory buffers look like, so we can, I guess, get a better gauge for the cadence of potential impacts moving forward.
Speaker #7: Yeah, I was encouraged by the recovery rate at 74%. I mean, albeit the numbers have been reduced from what our prior expectations were.
Mark Hill: Okay. I can't remember what we had in the deck, but the sensitivity obviously is $12 per ounce for every $10 move in the oil price. As far as supply, and we went through this yesterday as well. As far as supply goes, we are well covered everywhere. The supply is not gonna be an issue, it's just going to be the knock-on effect on the cost per ounce. We're at no risk of running out of diesel, if that answers the question.
Speaker #7: But with the throughput, the combination of the throughput and the slightly higher rate, I was assuming that part of that—part of the improved recovery—could be attributed to both of those factors, right?
Speaker #7: Longer retention time, given the lower tonnage. So I guess I’m just—are you expecting throughput next quarter to be up from where you are?
Speaker #7: I mean, you're halfway through the quarter at this point. So can you let us know how it's going at PB?
Bennett Moore: Okay, much appreciated. Best of luck.
Speaker #8: Yes, that throughput continues to increase over the year. I mean, I think your observation is exactly correct. And it's about understanding that so that we can work out where we need to invest to either de-bottleneck the throughput or lift the recovery at the throughput rate we run through.
Mark Hill: Thanks, Bennett.
Cleve Rueckert: Our next question comes from Anita Soni at CIBC World Markets. Your line is open. Please unmute and ask your question.
Anita Soni: Hi, can you hear me?
Speaker #8: So I think it's the correct observation. And when we continue to push throughput, this quarter and the Q3 as well.
Mark Hill: Yeah, we can hear you, Anita. Thanks.
Anita Soni: Oh, that's good. If I can figure out the unmute button. A couple of questions. Firstly, have you experienced any issues with concentrate shipments coming out of Zambia at this point, like in terms of port restrictions or things like that?
Speaker #7: Okay. And then just a quick question on the could you just give us the key drivers of where you're seeing the production improve quarter over quarter from Q1 to Q2 so we have an idea of which and what the drivers which assets and what's driving that?
Mark Hill: not that I'm aware of. Seb, can you answer that?
[Company Representative] (Barrick): No. Look, all of our concentrate, we smelt locally, so it hasn't been an issue. I'm not aware of any issues with the product exports from there. No, we haven't had problems.
Speaker #7: Not every asset.
Speaker #2: Okay. So no, no. So we see, obviously, improvements across the board as we go into the third and fourth quarter. Anita, a lot of that is just due to the fact which I'm going to try and change this where we come to the maintenance and shutdowns into the first half of the year to try and bolster the fourth quarter, which I'm sure we're not the only ones who do that.
Anita Soni: Yeah. Moving to PV. The tonnage there, I think I had only like a 15-day shutdown, but that tonnage was fairly low for the quarter too. Could you just talk about the tonnage of the throughput rate at PV?
Speaker #2: But as far as other changes maybe in the weeds a bit, let me just ask it to the COOs to give you an answer.
Mark Hill: Okay. Let me hand it over to Tim. Tim, can you answer it?
Speaker #2: So, can we start with you, Seb? If there's, obviously, the Lulu-Kantaro ramp-up, is there anything else Anita should know?
[Company Representative] (Barrick): Yeah. Thanks, Mark. Anita, I think the important thing at PV is, sure we updated the metallurgical model and we shared that in the updated technical report.
Speaker #6: No. I think you'll see most of the sites, especially Kobali, also you'll start seeing the production improve. There's been a lot of some maintenance work in this first quarter.
[Company Representative] (Barrick): Part of that work, and I mentioned the last quarter, is we're working with Hatch on how we can further improve this. In addition to the outage which happened during the month, as well as some power interruptions which the team experienced, there is also a body of work going on with Hatch and with our team around how we can further optimize this recovery going forward. You're really seeing a combination of the power, the outage for the shutdown work, and this improvement program work together in that number. As you can see, the recovery has come up from where it sat a year ago.
Speaker #6: So I think that Lulu Kantaro, for us already, as you said, is the key one.
Speaker #2: Okay. And the key for us is that we keep ep continuing the gold rush on the ground expansion. So you'll see quarters was up for quarter, and that's really the key driver there as we deliver that body of work.
Speaker #2: Okay. Getting in quarter is obviously improved. Exactly. So, quarter expressed a changing first quarter due to some of the one-off events and also high maintenance.
[Company Representative] (Barrick): I think, you know, we have some, you know, optimistic programs to try and lift ourselves further from where we're at on that recovery front.
Speaker #2: So, we should see an uptick with Q2. But there should be more in mind so that there's a change. Now, there are, Anita, so we're clear, because we do pull some assets forward and would have seen into Q1.
Anita Soni: I mean, I was encouraged by the recovery rate at 74%. I mean, albeit the numbers have been reduced from what our prior expectations were. With the throughput, the combination of the throughput and the slightly higher grade, I was assuming that part of this improved recovery could be attributed to both those factors, right? Longer retention time, given the lower tonnage. I guess I'm just like, are you expecting throughput next quarter to be up from where you are? I mean, you're halfway through the quarter at this point, can you let us know how it's going at PV?
Speaker #2: So again, we're just drawing down the treatment path, so we'll have to pay for that in Q2.
Speaker #7: Okay. And then my final question. So there were some press releases, I guess, came out April 28th, an update on the IPO process. I was intrigued by your comment about the commentary about bringing discussions on bringing 4 Mile in the fold, I guess.
Speaker #7: I'm not sure if that's earlier than planned or not, or maybe I was just reading into that, hoping for that. But could you give some color on exactly how 4 Mile fits in with the nature of discussions with you at this stage?
[Company Representative] (Barrick): Yeah. Throughput continues to increase over the year. I mean, I think your observation is exactly correct. It's about understanding that so that we can work out where we needed to invest to either de-bottleneck the throughput or lift the recovery at the throughput rate we run through. I think it's a correct observation and we continue to push throughput this quarter and into Q3 as well.
Speaker #8: Sure. So, look, the relationship with Newmont is, well, completely changed. So, one of the things we offered Newmont is, 'Look, come in and have a look at 4 Mile early because eventually, it has to come in the joint venture.' And Newmont will be part of that now.
Anita Soni: Okay. Just a quick question on, Could you just give us the key drivers of where you're seeing the production improve quarter over quarter from Q1 to Q2 so we have an idea of which, you know, and what the driver, like which assets and what's driving that? Not every asset.
Speaker #8: The trigger, as your point is, is not now. It's not till, I think, the fees are going to be in 2029 where we have to actually reach agreement.
Speaker #8: But they're seeing no reason not to give a blood test to data. And then we can have a discussion going forward about how we want to manage it.
Speaker #8: They're still going through that data, so I really haven't got an update past that.
Speaker #7: I guess I was wondering if there is any possibility of it coming into the fold earlier than the feasibility study. And you mentioned the PFS system will be done in 2028.
Mark Hill: Okay.
Anita Soni: The movers. Yeah.
Mark Hill: No, no. We see obviously improvements across the board as we go into Q3 and Q4. Anita, a lot of that is just due to the fact, which I'm gonna try and change this, where we hunt all the maintenance and shutdowns into H1 of the year to try and bolster Q4, which I'm sure we're not the only ones who do that. As far as other changes maybe down in the weeds a bit, let me just ask each of the COOs to give you an answer. Can we start with you, Seb? There's obviously Loulo-Gounkoto ramp up. Is there anything else Anita should know?
Speaker #7: So I'm curious as to whether or not you come to an agreement to bring it forward.
Speaker #8: Anita, if we can reach an agreement, I mean, we would bring it in for sure. I mean, that's not an easy question to answer because, obviously, it's a PEA level—who's comfortable on which parts of it—and we'll have that discussion.
Speaker #8: Like I said, though, we'll be in open discussion and we'll just see if we can bring it early. If we can, we will, and if we can't, we'll leave it as per the current agreement.
Speaker #7: Okay, I will stop there, and hopefully, Tony, you can get on and probably ask a question around the audit that you want to be doing.
[Company Representative] (Barrick): No. I think you'll see most of the sites, especially Kibali. You'll start seeing the production improve. There's been a lot of, you know, some maintenance work in this first quarter. I think Loulo-Gounkoto for us already, as you say, is the key one.
Speaker #8: Actually, operator, I have Tanya—got your actual email. So, I'm not sure. Do you want to try once more to see if you can actually ask the question?
Speaker #8: Otherwise, I'll read it out.
Speaker #9: Sure. Tanya, you are allowed to speak now. Please go ahead and unmute yourself.
Mark Hill: Okay. Tim?
[Company Representative] (Barrick): The key for us is that we keep continuing the Goldrush underground expansion. You'll see Cortez was up for the quarter, and that's really the key driver there, is we deliver that body of work.
Speaker #7: Can you hear me now?
Speaker #8: I can hear you now. Thank goodness. I thought you were going to get a complex one.
Mark Hill: Okay. Getting Bulyanhulu has obviously improved.
Speaker #7: Okay. Man, I feel like I've—what's the name?—somehow said, 'Yeah, Houston.' It made contact here. Okay. All right. Thank you for trying to reach Tony.
[Company Representative] (Barrick): Exactly. Bulyanhulu experienced a challenging Q1 due to some sort of one-off events and also planned maintenance. We should see an uptick for Q2. Veladero should be broadly in line. There's no big change.
Speaker #7: And first of all, I do want to say, Mark, congrats on improving the safety at Nevada Gold Mines on the journey that you're already there.
Mark Hill: Yeah. Veladero, just so we're clear, because we did pull some ounces forward, as you would've seen, into Q1. Again, it's just we're just drawing down inventory on the pad.
Speaker #7: And one of my first questions on Nevada Gold Mines is, you've seen that improvement in productivity. Have you also seen improvement in the turnover?
Mark Hill: We'll have to pay for that in Q2 at Veladero.
Anita Soni: Okay. Then my final question. There was some a press release I guess came out 28 April, update on the IPO process. I was intrigued by your comment about or commentary about bringing discussions on bringing Four Mile into the fold, I guess. I'm not sure if it said earlier than planned or not, or maybe I was just reading into that and hoping for that. Could you give some color on how does Four Mile fit in? What is the nature of the discussions with Newmont at this stage?
Speaker #2: So that's a good question. The turnover hasn't changed as far as I am. I'm looking at Bessel and Tim; they're nodding. So I think—look, I think I'm just going to say, I think Morel and the excitement about NGM and where it's going is definitely evident on the ground.
Speaker #2: I mean, I was there actually with Natasha last week, and we went and did a line-out, and everyone seems focused. So I would hope that that turnover number starts to improve, but no, it hasn't yet.
Speaker #7: And can you remind me, was it self-expense, or was that self-expense?
Mark Hill: Sure. Look, the relationship with Newmont has, well, completely changed. One of the things we did offer Newmont is, look, come in and have a look at Fourmile early, because eventually it has to come in the joint venture, and Newmont will be part of that. The trigger, as you point out, is not now. It's not till, I think, the feasibility in 2029, where we have to actually reach agreement. They're seeing no reason to not give them full access to the data. Then we can have a discussion going forward about how we wanna manage it. They're still going through that data, I really haven't got an update past that.
Speaker #2: Sorry, Tanya, I had trouble here. So I thought 12—is it 12 or 14 percent, Tim?
Speaker #9: 14 percent.
Speaker #2: 14 percent.
Speaker #7: Okay. Okay. Thank you for that. And just again, at Nevada Gold Mines, and I know Anita asked on training logins earlier for 4 Mile when it's completed and stopped.
Speaker #7: Is there anything in your discussions with them—I know that you only have a PEA and they might have a feasibility study you need to have reserved, I guess, for US gas or for them to try and do any calculations.
Anita Soni: I guess I was wondering, is there any possibility of it coming into the fold earlier than the feasibility study? You mentioned the PFS is due in or it will be done in 2028. I'm curious as to whether or not you can come to an agreement to bring it forward.
Speaker #7: But is there a way that this would be also brought in even over a period of time? Is that an option as well?
Mark Hill: I mean, if we can reach an agreement, I mean, we would bring it in for sure. I mean, that's not an easy question to answer because obviously it's at PEA level. Who's comfortable on which parts of it? We'll have that discussion. Like I said, though, it'll be an open discussion, and we'll just see. If we can bring it in early, we will. If we can't, we'll leave it as per the current agreement.
Speaker #8: Actually, Tanya, I'm not sure. I think, sorry, Anna, I don't want to speak on behalf of Newmont either, so I need to be a bit careful.
Speaker #8: But like I said, I have all the information now, including all the financial models. And if we can bring it in early, I can't see how that isn't eventually just to both of us—that I really can't say much more than that.
Anita Soni: Okay. I will stop there, and hopefully Tanya can get on and probably ask a question around the audit that Newmont is doing. Thanks.
Speaker #8: I certainly can't speak to what they're thinking at this stage.
Speaker #7: Okay. Thank you for that. And if I could ask on this, Miley, I mean, obviously, there are a lot of countries and country issues that are occurring there.
Mark Hill: Actually, operator, I have Tanya. I've got your actual email. I'm not sure. Do you wanna try once more to see if you can actually ask the question? Otherwise, I'll read them out.
Speaker #7: And I keep getting asked on the impact to you and your operations, supplies, and others. Can you just give an update on any impacts that are happening to you because of country issues versus your own?
Cleve Rueckert: Sure. Tanya Jakusconek, you are allowed to speak now. Please go ahead and unmute yourself.
Speaker #7: How are you doing right now?
Tanya Jakusconek: Can you hear me now?
Speaker #8: Sorry, Tanya. You're talking just specifically Miley, yes?
Mark Hill: I can hear you now. Thank goodness. I thought you were gonna get a complex or something.
Speaker #7: Yes. Specifically Miley.
Tanya Jakusconek: Oh, my God. It took time here. Oh, my goodness. Okay. Man, I feel like that, you know, what's-his-name, Tom Hanks, goes, Yes, Houston, we've made contact here. Okay. All right. Thank you for trying to come. First of all, I do wanna say, Mark, congrats on improving the safety at Nevada Gold Mines. I'm assuming that has helped majority there. One of my first questions on Nevada Gold Mine is, you've seen that improvement productivity. Have you also seen an improvement in the turnover?
Speaker #8: Okay, look, I'll start off, and then I'm going to hand over to Seb. So, obviously, we've had a good run, as you've seen. We've been competing in getting this thing up and running, which was a pleasant surprise.
Speaker #8: And the roadblocks—well, the difficulties that Seb's facing—so I'll hand over to Seb and let him speak for himself if there's anything you want to highlight.
Speaker #3: Look, Tanya, we haven't had any impact on our operations. I'll supply things coming through Senegal. So it doesn't really impact us. The roadblock that's in Tobacco—we've got at least five months of supplies on our key imagery holdings.
Mark Hill: That's a good question. The turnover hasn't changed as far as I've been looking at Wessel and Tim, they're nodding. I think the morale and the excitement about NGM and where it's going is definitely evident on the ground. I mean, I was there actually with Natasha last week, and we went and did a line out, and everyone seems focused. I would hope that that turnover number, it starts to improve. No, it hasn't as yet.
Speaker #3: And most of our contractors are local. So really, and diesel's also not an issue. We secured about three months of stock, which was a strong pipeline.
Speaker #3: So we're operating as normal at the moment, and there's been no impact.
Speaker #7: Okay. And then, Mark, if I could just ask my final question, just on the IPO of the North American asset. Can you just review that timeline of all of the documentation?
Speaker #7: First of all, all of the documentation is required. Sort out the timeline so that you need them all filed and available to the public, so that you can make your year-end deadline.
Tanya Jakusconek: Can you remind me, was it 12%? Was that 12%?
Mark Hill: Sorry, Tanya. I had trouble hearing you. I thought it was 12, or is it 12 or 14%, Tim?
Speaker #7: So if we don't have it by X, then do we slip into 2027? So I'm just trying to understand which documents you need. I think the board of directors has handled that, etc.
[Company Representative] (Barrick): 14%.
Mark Hill: 14%.
Tanya Jakusconek: Okay. Okay. Thank you for that. Just again, at Nevada Gold Mines, I know I need to ask on bringing Newmont in earlier for Fourmile once it's included in stock. Is there anything, you know, in your discussions with them, I know that you only have a PEA and, you know, they might have a feasibility study, because you need to have reserves, I guess, or, you know, US GAAP for them to kind of do any calculations. Is there a way that this could be also brought in, you know, over a period of time? Is that an option as well?
Speaker #7: And when do we get this in the market?
Speaker #8: Okay, Tanya. Look, obviously, I know the high-level timeline, but let me hand over to George and he can try to give you a bit more granular detail.
Speaker #7: Thank you, Tanya. How are you?
Speaker #3: Sorry. So just in terms of answering your question, we need to file with the SEC, we file with the TSX. So those are notes for Australia that our advisors tell me I can't say much.
Speaker #3: But effectively, what we're looking at is we'll public sometime later this summer, which then allowed us to access the market in the fall. Which is why we're confident we can do this by year-end this year.
Mark Hill: Actually, Tanya, I'm not sure. Like, sorry, look, I don't want to speak on behalf of Newmont either here, so I need to be a bit careful. Like I said, I'd like to. They have all the information now, including all the financial models. If we can bring it in early, I can't see how that is not a advantage just to both of us. I really can't say much more than that, and I certainly can't speak to what they're thinking at this stage.
Speaker #3: So just to be clear, we've been waiting since the board gave us the approval at the last board meeting. We've been working on these documents, like you said, the financials, etc.
Speaker #3: Those have all been done. And we're in the process of filing all of that and, like I said, it will be done by late summer.
Speaker #3: You'll have all the information. We'll be able to answer all the questions.
Speaker #7: And can I confirm that you need three sets of financials? You need to file technical reports on Nevada Gold Mines for Mile in February again.
Speaker #7: Is that correct assumption?
Tanya Jakusconek: Okay. Thank you for that. If I could ask on just Mali, you know, obviously a lot of country and country issues that are occurring there, I keep getting asked on the impact to you and your operation supplies and others. Can you just give us an update on anything, any impacts that are happening to you because of, you know, country and country issues versus your own, you know, how you're doing on Mali?
Speaker #3: That is correct. The team has done the perimeter is obviously NGM PV plus 4 Mile. And that's what the financials will reflect.
Speaker #7: Okay. Look forward to getting those documents. Thank you for taking my questions. Thank you for your patience.
Speaker #8: Thanks, Tanya. Not to hear from you.
Speaker #9: Our next question comes from Martin Pradera at Veritas. The line is open. Please unmute and ask your question.
Mark Hill: Sorry, Tanya. This, you're talking just specifically Mali, yes?
Tanya Jakusconek: Yes, specifically Mali.
Speaker #3: Can you hear me?
Speaker #2: Yeah, we can hear you, Matt.
Mark Hill: Okay. Look, I'll start off, and then I'm gonna hand over to Ted. Obviously, we've had a good run, as you've seen. We've been unimpeded in getting this thing up and running, which was a pleasant surprise. The roadblocks or the difficulties that Ted's facing, actually, I'll hand over to Ted and let him speak for himself if there's anything he wants to highlight.
Speaker #3: Perfect. Can you explain how the equity gap in Kivali was $204 million in Q1? And this is similar to the equity gap in the whole year 2025.
Speaker #2: I'm not sure I understand that question, Seb. Can you answer that?
Speaker #8: Sorry to repeat it. I can get it.
[Company Representative] (Barrick): Look, Tanya, we haven't had any impact on our operations. Our supply chain's coming through Senegal, it doesn't really impact us, the roadblocks that's into Bamako. We've got at least 5 months of supplies on, you know, our key inventory holdings.
Speaker #3: So the.
Speaker #2: I'm sorry. Can you repeat it?
Speaker #3: Yeah. The equity gap in Q1 2026, for Kivali, was $204 million, which is similar to the equity gap that you had in the full year 2025.
Speaker #3: So what happened? I mean, it's much higher than the same quarter last year. What happened there? Is there any extraordinary thing?
Mark Hill: Most of our contractors are local. Really, and diesel's also not been an issue. We've secured about three months of stock, which with a strong pipeline. We're operating as normal at the moment, and there's been no impact.
Speaker #8: I mean, there's nothing extraordinary. So, I think what I would suggest is to send us an email so that we can understand exactly what you're pointing to.
Tanya Jakusconek: Okay. Then Mark, if I could just ask my final question, just on the IPO of the North American assets. Can you just review with us the timeline of all of the documentations that are required, sort of the timeline that you need them all filed and available to the public before so that you can make your year-end deadline? If we don't have it by X, you know, date, then do we slip into 2027? I'm just trying to understand documents that we need, I think board of directors, financials, et cetera, and when can we get this in the market?
Speaker #3: Sorry, George, do you want to comment?
Speaker #8: You're not on the line. Okay. Sorry, Martin. Can we come back to you on that?
Speaker #3: Yep.
Speaker #8: And then—I'm sorry, Helen just wanted to comment.
Speaker #7: Yeah, so this is mainly the reversal of the super profit tax. That is our current answer to you. If there is anything more, we’ll follow up with you on it.
Speaker #3: The reversal of what?
Speaker #7: Super profit tax.
Speaker #3: Okay. And how big was that?
Speaker #8: I don't know, Matt. Look, can we follow up offline? I think that's okay.
Speaker #3: Okay. Fair enough. Maybe it's too detailed. That's fine. Thank you.
Mark Hill: Okay. Shaina, look, obviously I know the high-level timeline. Let me hand it over to George, and he can probably give you a bit more granular detail.
Speaker #8: I was not too detailed. I just don't know the answer.
Tanya Jakusconek: Thank you.
[Company Representative] (Barrick): Hey, Shaina, how are you? Sorry, just in terms of answering your question, we need to file with the SEC, which file with TSX. Those, you know, I know it's frustrating, but our advisors tell me that I can't say much. Effectively what we're looking at is we'll be public sometime late in the summer, which then allows us to access the market in the fall, which is why we're confident that we can do this by year-end this year. Just to be clear, we've been working since the board gave us the approval at the last board meeting. We've been working on these documents, like you said, the financials, et cetera. Those have all been done, and we're in the process of filing all of that. Like I said, we'll be done by late summer.
Speaker #9: Our next question comes from Stephen Green with TD Securities. Your line is open. Please unmute and ask your question.
Speaker #3: Yeah. Good morning, everyone. Just a quick follow-up. I guess this one's for Helen. Regarding the NCIB, are there any restrictions in buyback shares once the IPO process is underway?
Speaker #7: Hi. Thank you for the question. Yes. There will be a period according to all the regulations. Our buyback will be executed only when it is regulatory possible.
Speaker #3: Okay. Great. Thank you.
[Company Representative] (Barrick): You'll have all the information. We'll be able to answer all the questions.
Speaker #7: Thank you.
Tanya Jakusconek: Am I correct that you need for your financial, you need to file technical reports on the Batagol Mine, Fourmile, and several drill holes again? Is that correct assumption?
Speaker #9: Our next question comes from Brian McArthur at Raymond James. Your line is open. Please unmute and ask your question. Brian, your line is open.
[Company Representative] (Barrick): That's correct. The team has done, like, the perimeter is obviously, yeah, NGM, PV, plus Fourmile, and that's what the financials will reflect.
Speaker #9: Please go ahead and unmute and ask your question.
Tanya Jakusconek: I look forward to getting those documents. Thank you for taking my questions, and thank you for your patience.
Speaker #8: The same as we already the same as we had the same problem again, Brian. You're welcome to email the question and we will answer it.
[Company Representative] (Barrick): Thanks, Shaina, and I'll take from here.
Speaker #3: Sorry. Hi, Mark. Can you hear me?
Cleve Rueckert: Our next question comes from Martin Pradier at Veritas. Your line is open. Please unmute and ask your question.
Speaker #8: I can hear you now, Brian. Yes.
Speaker #3: Sorry, but I just have a hard time here too. I'm just followed up on one of your earlier questions about now for assets. You mentioned quarter up.
Speaker #3: But is there anything on the copper side historically, with some discussion that, over time, values might be potentially divested? Any comment on that at all, please?
Martin Pradier: Can you hear me?
Mark Hill: Yeah, we can hear you, Martin.
Martin Pradier: Perfect. Can you explain how the equity pickup in Kibali was $204 million in Q1? This is similar to the equity pickup in the whole year 2025.
Speaker #8: Yeah. So there's no, Brian, yes—there's no process or anything going on at the moment to divest or sell the bond.
Speaker #3: Thanks very much.
Mark Hill: I'm not sure I understand that question. Seb, can you answer that?
Speaker #8: Thanks, Brian.
[Company Representative] (Barrick): Sorry, just to repeat it. I didn't get that.
Speaker #9: That concludes our Q&A session for today. Back to Cleve for any closing remarks.
Martin Pradier: So the-
Mark Hill: Sorry, can you repeat that?
Martin Pradier: Yeah. The equity pickup in Q1 2026 for Kibali was $204 million, which is similar to the equity pickup that you had in the full 2025. What happened? I mean, it's much higher than the same quarter last year. What happened there? Is there any extraordinary thing?
Speaker #8: Great. Thank you, everyone, for joining us today. We look forward to speaking with you again on our second quarter results call in August. As always, please get in touch with us if you have any further follow-up questions.
Speaker #8: Thanks again.
[Company Representative] (Barrick): I mean, there's nothing extraordinary. I think, what I would suggest is to send us an email so that we can understand exactly what you're pointing to.
Mark Hill: Sorry, Bruce, do you wanna comment? He's not online. Okay. Sorry, Martin. Can we come back to you on that?
Martin Pradier: Yeah, sure.
Mark Hill: I'm sorry. Helen's got something for that. Just one minute, Martin.
Helen Cai: Yeah. This is mainly the reversal of the super profit tax. That is our current answer to you. If there's anything more, we'll follow up with you offline.
Martin Pradier: The reversal of what?
Helen Cai: Super profit tax.
Martin Pradier: Okay. How big that was?
Mark Hill: I don't know, Martin. Look, can we follow up offline?
Martin Pradier: Okay.
Mark Hill: And we'll get you a quick-
Martin Pradier: Fair enough. Fair enough. Maybe it's too detailed. That's fine. Thank you.
Mark Hill: It's not too detailed. I just don't know how to answer.
Cleve Rueckert: Our next question comes from Steve Green with TD Securities. Your line is open. Please unmute and ask your question.
Steve Green: Yeah. Good morning, everyone. Just a quick follow-up. I guess this one's for Helen, regarding the NCIB. Are there any restrictions in buying back shares once the IPO process is underway?
Helen Cai: Hi. Thank you for your question. Yes, there will be like a period, according to all the regulations. Our buyback will be executed only when it is regulatory possible.
Steve Green: Okay, great. Thank you.
Helen Cai: Thank you.
Cleve Rueckert: Our next question comes from Brian MacArthur at Raymond James. Your line is open. Please unmute and ask your question. Brian, your line is open. Please go ahead and unmute and ask your question.
Mark Hill: It seems Brian, it seems we have the same problem again, Brian. You're welcome to email the question, and we will answer it.
Brian MacArthur: Sorry. Hi, Mark. Can you hear me?
Mark Hill: I can hear you now, Brian. Yes.
Brian MacArthur: Sorry about that. I'm just having a hard time here too. I'm just following up on one of your earlier questions about non-core assets. You mentioned Porgera. Is there anything on the copper side historically with some discussion that over time Zaldívar might be potentially divested? Can you comment on that at all, please?
Mark Hill: Yeah. There's no, Brian, yes, there's no process or anything going on at the moment to divest or sell the miner.
Brian MacArthur: Thanks very much.
Mark Hill: Thanks, Brian.
Cleve Rueckert: That concludes our Q&A session for today. Back to Cleve Rueckert for any closing remarks.
Tanya Jakusconek: Great. Thank you everyone for joining us today. We look forward to speaking with you again on our Q2 results call in August. As always, please get in touch with us if you have any further follow-up questions. Thanks.
Mark Hill: Thank you. Cheers.
