Barrick Raises Dividend on Back of Strong Cash Position
*First Quarter 2022 Results
*All amounts expressed in US dollars
TORONTO, May 04, 2022 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today announced a $0.20 per share quarterly dividend, the first to include a $0.10 per share performance component in line with its new dividend policy.
President and chief executive Mark Bristow said the Company’s net cash balance at the end of Q1 stood at $743 million, reflecting cash flow from the operations, the continuing sale of non-core assets, and its share of a further $0.6 billion in cash distributions by Kibali.
Since agreement on the repatriation of revenue from Kibali was reached with the Democratic Republic of Congo (DRC) last year, Kibali has delivered $1.2 billion (on a 100% basis) in the form of dividends and debt repayments, inclusive of distributions received subsequent to March 31, 2022.
Bristow said as guided earlier, Q1 was a softer quarter, particularly when compared to Q4 of 2021, which included a record-breaking performance from Nevada Gold Mines. With a stronger performance expected in the second half of the year, Barrick remains on track to meet its 2022 production guidance.
Highlights of the quarter included the framework agreement with Pakistan on restarting the Reko-Diq copper-gold project. Bristow is scheduled to meet the country’s new prime minister later this month to review progress.
Also significant was the progress made in securing a new tailings storage facility for the Pueblo Viejo project in the Dominican Republic. The project is designed to unlock approximately 9 million ounces of measured and indicated resources and convert them into additional proven and probable reserves, extending the mine’s life by more than 20 years.^13
“Barrick controls what are unquestionably the mining industry’s best gold assets as well as some substantial copper mines. Reko Diq is one of the largest undeveloped copper-gold porphyry deposits in the world, and if the conditions to closing are satisfied, it will be a very significant addition to this portfolio, even before it goes into production, by boosting reserves and resources as the updated feasibility study unfolds,” Bristow said.
“In addition to its size and quality, Barrick’s asset base is distinguished by our continued success in more than replacing the reserves depleted by mining through brownfields exploration. At the same time, we continue to hunt for new Tier One assets across our expanding global footprint. The past quarter again produced promising results from all regions, with significant new potential identified in Nevada, Argentina and Africa’s Loulo district.”
Bristow said the Company’s latest annual Sustainability Report highlights its integrated approach to ESG, based on its belief that the challenges of poverty, climate change and biodiversity are intertwined and should be addressed holistically. The report notes that last year Barrick spent $5.5 billion with host country suppliers, equating to 81% of its global procurement expenditure. Host country nationals accounted for 96% of its total workforce and 78% of its management, and the drive to employ more women is succeeding.
Some $850 million has been spent on or budgeted for renewable energy and greenhouse gas (GHG) emissions reduction projects. These are outlined in the report in an updated GHG emissions reduction roadmap leading to a Net Zero target by 2050. Barrick, for the first time, has disclosed its Scope 3 emissions and Scope 3 roadmap to engage and assist its suppliers with their GHG emissions reductions.
“Sustainability has long been an integral part of the way Barrick does business and our commitment to its effective management is key to our goal of building the world’s most valued gold and copper mining company,” Bristow said.
*Key Performance Indicators*
*Financial and Operating Highlights*
*Financial Results* *Q1 2022* *Q4 2021* *Q1 2021*
Realized gold price^4
($ per ounce) *1,876* 1,793 1,777
Net earnings
($ millions) *438* 726 538
Adjusted net earnings^3
($ millions) *463* 626 507
Net cash provided by operating activities
($ millions) *1,004* 1,387 1,302
Free cash flow^1
($ millions) *393* 718 763
Net earnings per share
($) *0.25* 0.41 0.30
Adjusted net earnings per share^3
($) *0.26* 0.35 0.29
Attributable capital expenditures^5,6
($ millions) *478* 552 424
*Operating Results* *Q1 2022* *Q4 2021* *Q1 2021*
*Gold*
Production^7
(000s of ounces) *990* 1,203 1,101
Cost of sales (Barrick's share)^7,8
($ per ounce) *1,190* 1,075 1,073
Total cash costs^7,9
($ per ounce) *832* 715 716
All-in sustaining costs^7,9
($ per ounce) *1,164* 971 1,018
*Copper*
Production^6
(millions of pounds) *101* 126 93
Cost of sales (Barrick's share)^7,8
($ per pound) *2.21* 2.21 2.11
C1 cash costs^7,10
($ per pound) *1.81* 1.63 1.60
All-in sustaining costs^7,10
($ per pound) *2.85* 2.92 2.26
*Best Assets*
· First quarter puts Barrick *on track to achieve 2022 production targets*
· *Strong performance from Loulo-Gounkoto* on the back of solid throughput, recovery and grade
· *Pueblo Viejo new Tailings Storage Facility permitting makes significant progress *
· *Reko Diq framework agreement signed* with Pakistan paving the way for the next potential Tier One^11 asset development
· *New senior appointments* strengthen management team as it expands globally
· *Exciting exploration results in all regions* with significant new potential highlighted in Nevada, Argentina, and the Loulo District
*Leader in Sustainability*
· *2021 Sustainability Report* published highlighting our integrated approach to ESG
· *33% decrease in LTIFR*^12 quarter on quarter
· *Updated **GHG Reduction Roadmap* outlining our journey to Net Zero by 2050
· *Funding the reintroduction of white rhinos* to the Garamba National Park in the DRC
*Delivering Value*
· Operating cash flow of $1,004 million and* free cash flow*^*1** of $393 million* for the quarter
· Net earnings per share of $0.25 and *adjusted net earnings per share*^*3** of $0.26* for the quarter
· *Kibali distributes a further $0.6 billion in cash* during the quarter (100% basis)
· Net cash^2 of $743 million results in a* $0.20 per share dividend* for Q1 2022, inclusive of a $0.10 per share performance dividend^14
*Q1 2022 Results Presentation*
*Webinar and Conference Call*
President and CEO Mark Bristow will host a virtual presentation on the results today at 11:00 EDT, with an interactive webinar linked to a conference call. Participants will be able to ask questions.
Go to the webinar
US and Canada (toll-free), 1 800 319 4610
UK (toll-free), 0808 101 2791
International (toll), +1 416 915 3239
The Q1 2022 presentation materials will be available on Barrick’s website at www.barrick.com and the webinar will remain on the website for later viewing.
*NEW PERFORMANCE DIVIDEND POLICY DOUBLES BARRICK’S QUARTERLY DIVIDEND*
*Barrick today announced the declaration of a dividend in respect of performance for the first quarter of 2022 that incorporates an enhancement to the base dividend as a result of achieving Level III under the Company’s Performance Dividend Policy.*
Barrick’s Board of Directors declared a dividend of $0.20 per share for the first quarter of 2022 that will be paid on June 15, 2022 to shareholders of record at the close of business on May 27, 2022.^14 This dividend comprises a base quarterly dividend of $0.10 per share and a performance dividend enhancement of an additional $0.10 per share.
“Our strong operating performance and robust net cash balance has allowed us to provide an enhanced dividend to our shareholders,” says senior executive vice-president and chief financial officer Graham Shuttleworth. “We believe this shows the benefit of the Performance Dividend Policy that we announced in February, including the guidance it provides to our shareholders on future dividend streams.”The $0.10 per share enhancement to the base quarterly dividend was achieved as a result of Barrick reporting net cash on its Consolidated Balance Sheet at March 31, 2022 of greater than $0.5 billion and less than $1 billion as per the following schedule:
*Performance Dividend Level* *Threshold Level* *Quarterly Base Dividend* *Quarterly Performance Dividend* *Quarterly Total Dividend*
Level I Net cash <$0 $0.10
per share $0.00
per share $0.10
per share
Level II Net cash
>$0 and <$0.5B $0.10
per share $0.05
per share $0.15
per share
Level III Net cash
>$0.5B and <$1B $0.10
per share $0.10
per share $0.20
per share
Level IV Net cash >$1B $0.10
per share $0.15
per share $0.25
per share
*STRATEGY SECURES BARRICK’S ABILITY TO SUCCEED AMID GLOBAL GEOPOLITICAL DYNAMICS AND IN CHALLENGING JURISDICTIONS**While Barrick’s core strategy — the creation and delivery of real, sustainable value to its stakeholders — is fixed, the actions needed to secure its consistent execution are subject to a rigorous review process.*
This starts at the beginning of each year with a week-long strategic planning and team effectiveness review for the group’s top executives, led by president and chief executive Mark Bristow. Risks and opportunities are carefully assessed, and the outputs needed to manage them effectively are identified. These outputs are then rolled out through similar planning sessions at all operational and corporate sites, ensuring a group-wide alignment with the agreed objectives and actions.
This year’s group strategy session took particular note of the importance of risk management in a global environment which, says Bristow, is probably in greater political, social and economic disarray than any previous period since World War II.
“We’re still dealing with the fall-out of the Covid-19 pandemic, inflation in developed countries is rising to levels not experienced in a generation and in Eastern Europe a major war, the like of which we never expected to see again, is ongoing, with huge personal cost and potentially devastating economic consequences for the major countries dependent on Russian oil and gas,” says Bristow.
“Fortunately for Barrick, managing risks in challenging geo-political jurisdictions is one of our core competencies, largely gained in Africa, where our mines have continued to operate steadily and profitably through civil wars, coups d’état, complex logistics and delicate negotiations with host governments,” he says.
“It’s our partnership philosophy that has enabled us to achieve this. Mining is a long-term business and we therefore need the ability to benefit our host countries for the length of our investment and beyond. We secure this essential social licence to operate by demonstrating that the value we create is equitably shared with our local stakeholders and that we are a major contributor to the state’s coffers — in short, a welcome and responsible citizen and neighbour.”
Bristow says with mature mining regions offering fewer opportunities for major discoveries, new Tier One assets will inevitably have to be sought in developing countries, where Barrick is already operating successfully.
“Our decision to proceed with the reconstitution of the Reko Diq project in Pakistan, a Tier One copper and gold asset in the making by any measure, is based on this track record and on our confidence in our ability to deliver yet another world-class mine in a remote region. Our drive to expand our Asia-Pacific presence and grow our copper portfolio also sit firmly within this strategy,” he says.
*INVESTING IN THE BEST PEOPLE FOR THE BEST FUTURE*
*“Getting the optimal results from the industry’s best assets requires people who not only possess skills and drive but are also sufficiently diverse in terms of race, age and gender to lead Barrick into the new world,” explains the Group Human Resources executive, Darian Rich.*
Thanks to Barrick’s long-established policy of recruiting host country nationals, 96% of its workforce and 78% of its managers are local hires. Its drive for gender diversity in a traditionally male-dominated industry has also started producing results, with women accounting for 24% of new hires during the past quarter and 11% of Barrick’s global workforce.
Similarly, the employee age shift continues and 56% of the workforce are now under the age of 40 and 16% under the age of 30. In the past quarter, 38% of new hires were younger than 30.
Last quarter, the North America region participated in 36 recruiting events at schools and universities while Latin America’s internship programs cater for graduates as well as workers, with Veladero currently training 20 female truck drivers. In Africa and the Middle East, competency-based training programs continue to upskill workers.
Preparing the group’s future generation of leaders requires deep succession planning, reflected in a number of key recent changes. With Willem Jacobs retiring in June 2022, the region’s chief financial officer, Sebastiaan Bock, is stepping up as chief operating officer for Africa and the Middle East. Greg Walker is being succeeded as executive managing director of Nevada Gold Mines at the end of 2022 and, in the corporate office, Poupak Bahamin has been appointed general counsel while Rich Haddock transitions to a legal advisor role. Rich will remain a valuable resource through March 2024 to provide continuity of support for Reko Diq and other projects.
*MANAGING COSTS AMID HIGH INFLATION AND GEOPOLITICAL CONFLICT*
*Rising inflation, exacerbated by the conflict between Russia and Ukraine and the sanctions imposed on Russia, has had a direct impact on Barrick’s business in terms not only of fuel and gas prices but also the cost and availability of input commodities.*
To mitigate inflation and manage supply risks, Barrick is employing a proven multi-pronged strategy, says group commercial and supply chain executive Riaan Grobler.
“Our procurement strategy is built on a thorough understanding of our key cost drivers, commodities and services. The recent groupwide roll-out of SAP has improved the visibility of these factors and allowed real-time decision-making. At the same time, we are identifying technical levers that could drive internal efficiencies,” he says.
“Secondly, we have built strong collaborative relationships with leading global supply chain partners, with a dedicated freight forwarding capacity that spans five continents. They pool their buying power to ensure that we have fixed-price agreements with key suppliers. A big part of the cost of logistics is in the efficiency of the movement of goods from port to destination and we leverage global logistics through our partnership structures to do cross-continent bookings of charters and to consolidate freight from multiple ports.”
Barrick is also cultivating alternative suppliers, particularly in developing countries, as back-up to its main supply chain partners and as a cost-base benchmark. Its long-standing policy of local procurement in host countries, which now stands at 65% of its global procurement, is serving Barrick well as a hedge against inflation, particularly in terms of the cost of logistics, tariffs and inventory.
To manage price and supply volatility, Barrick has built up a strategic inventory of key commodities and Barrick optimizes this inventory and its cost through improved demand and maintenance planning. Where possible it also leverages new projects to renegotiate supply contracts. The proposed 200MW solar power project in Nevada, for example, has allowed Barrick to reduce the costs of the existing energy supplier for Nevada Gold Mines.
*TRUE PARTNERSHIP WILL DELIVER REKO DIQ PROJECT*
*The groundbreaking partnership agreement between Barrick, the federal government of Pakistan and the provincial government of Balochistan should unlock the enormous value of Reko Diq, one of the world’s largest undeveloped copper and gold deposits, says president and chief executive Mark Bristow.*
Speaking on a recent investor call, Bristow said the project represented a unique mining opportunity, which would be a major addition to Barrick’s Tier One asset base, while also bringing significant economic and social benefits to Pakistan and Balochistan.
The agreement in principle recently reached between the parties provides for the reconstitution and restart of the project, which has been on hold since 2011. It will be operated and owned 50% by Barrick, 25% by Pakistani state-owned enterprises and 25% by the government of Balochistan. The Company has similar partnerships in other countries which have proved to be catalysts in developing local economies.
Bristow said that, following the finalization of the underlying agreements, legalization and closing, Barrick would update the 2010 feasibility study.
“Reko Diq’s fundamentals have not changed materially since then. Subject to the updated feasibility study, it is still envisaged as a conventional open pit and milling operation producing a high-quality copper-gold concentrate. We are planning a two-phase construction approach, starting with an approximately 40 million tonne per annum plant, which could be doubled within five years. The staged development will optimize returns, manage upfront capital, lower execution risk and bring forward production and cash flows in the long run. If all goes according to plan, we anticipate first production in five to six years’ time,” he said.
“Offering a unique combination of large scale, low strip and good grade, Reko Diq will be a multi-generational mine, with a life of at least 40 years. The contemplated mine plan is based on four porphyry deposits within our land package and our exploration licence area holds additional deposits with future upside potential.”
Noting that since 2010 there had been game-changing technological advances in renewable energy alternatives, some of which are particularly well-suited to the area, Bristow said a Barrick team was already assessing various solar, wind and battery configurations to maximize the mine’s renewable power generation. This could also deliver a range of economic and operational benefits.
The development of Reko Diq will make Balochistan the largest recipient of foreign investment in Pakistan. During peak construction periods, the project is expected to employ 7,500 people and once in production will create about 4,000 long-term jobs. Barrick’s policy of prioritizing local employment and suppliers will have a positive downstream impact on the local economy.
“At Barrick we know that our long-term success depends on sharing the benefits we create equitably with our host governments and communities. That’s why we wanted Balochistan’s share of the venture to be fully funded, 10% by the project and 15% by the government of Pakistan. It’s equally important to us that Balochistan and its people should see the benefits from day one. Even before construction begins, we will be implementing a range of social development programs, supported by upfront commitments to the development of the skills required for mining, the improvement of education, healthcare, food security and, importantly, access to potable water in a region where the groundwater has a high saline content,” Bristow said.
*KIBALI POWERS AHEAD WHILE BARRICK PLANS FURTHER INVESTMENTS IN DRC*
*Africa’s largest gold mine, Kibali in the DRC, has made a strong start to 2022 and is on track to equal its 2021 production this year. Last year it again replaced the reserves depleted by mining and its prolific KZ trend of orebodies continues to deliver opportunities for significant open pit and underground growth.*
Speaking to media and other stakeholders in Kinshasa, Barrick president and chief executive Mark Bristow said Kibali had notched up a number of other key deliverables during the current quarter. These include the signing of a cahier de charge with the surrounding communities to formalize their role in identifying and overseeing the mine’s investment in social development projects.
Another section of the Durba road to Watsa has been completed and the resettlement of the Kalimva-Ikamva and Pamao villages has started with the first group of people moving into their new homes. On the health and safety front, there were zero lost time injuries during the quarter, the malaria and HIV programs continued to deliver infection rate reductions and 60% of our employees have been vaccinated against Covid-19, versus a national average of 1%.
In addition to Kibali’s long-standing support for conservation measures in one of DRC’s leading national parks, African Parks and Barrick are looking to reintroduce the white rhino to the Garamba National Park. In what will be the largest exercise of its kind, the plan envisages the relocation of around 50 white rhinos to Garamba creating a new population group which is critical in the long-term plan to protect this species. In line with Barrick’s development strategy, the mine also launched the Garamba Alliance in partnership with the US Agency for International Development (USAID).
Since the project that became Kibali was acquired in 2009, its probable mineral reserves were doubled to more than 10 million ounces^15 of gold in 2010. Construction then started the following year, three hydropower plants were built and the infrastructure — including the road to the Ugandan border — was developed. The mine went into production in 2013 and still today has more than 10 years of mine life ahead, with 2021 total proven and probable mineral reserves of 83Mt at 3.60g/t for 9.6Moz^16 of gold, before considering extensions to known orebodies and new discoveries. Since 2009, Kibali has invested almost $4 billion in the DRC in the form of royalties, taxes and permits; infrastructure and community development; salaries; and payments to local suppliers and contractors, which have created a thriving regional economy.
“Barrick is continuing to invest in the DRC, not only by developing the many new growth opportunities which are extending Kibali’s life, but also through pursuing greenfields exploration and other opportunities across the country as we search for our next world-class discovery,” Bristow said.
*HOLISTIC APPROACH TO ESG WILL MAKE LASTING IMPACT*
*Barrick has an integrated approach to sustainability to address each of the Environmental, Social and Governance (ESG) components concurrently, says group sustainability executive Grant Beringer in the Company’s **2021 Sustainability Report**.*
“The challenges of fighting poverty, climate change and biodiversity loss are deeply connected, and we have no option but to tackle them together through a holistic and integrated approach to sustainability management, if we are to make a lasting, positive impact on any of them,” he says.
“While excellent management of environmental aspects is critical for sustainable delivery, this only focuses on one side of the issue. That is why this report has a strong focus on the ‘silent S’ in ESG, demonstrating that responsible mining is an enormous lever for delivering social upliftment and development.”
Barrick achieved a ‘B’ grade for a third consecutive year in its industry-first Sustainability Scorecard and recorded significant improvements across most of its key metrics. Highlights for the year include the certification of all operational sites to the ISO 45001 and ISO 14001 standards and the procurement of goods and services worth $1.67 billion from local suppliers close to Barrick’s operations. In total, $5.5 billion was spent on host country suppliers, equating to 81% of Barrick’s global procurement spend. Further details of Barrick’s economic value contribution, including taxes paid, is included in its standalone Tax Contribution Report for 2021. Host country nationals now comprise 96% of its workforce and the group maintained its downward trend in the Total Recordable Injury Frequency Rate.^17
Additionally, approximately $850 million has been spent or budgeted for renewable energy and GHG emissions reduction projects, all of which meet the Company’s required 15% internal rate of return. The report also contains an updated GHG Reduction Roadmap, outlining the projects that decrease emissions against Barrick’s 2018 baseline by at least 30% by 2030, while maintaining a steady production profile, as well as its course to be Net-Zero by 2050. It also details Barrick’s first-ever disclosure of its Scope 3 emissions and Scope 3 roadmap to engaging and assisting its suppliers with their GHG emissions reduction. Barrick’s water efficiency rate, a measure of the amount of water it reuses and recycles, was 82% for 2021.
Meanwhile, its new Biodiversity Standard, focused on driving positive biodiversity outcomes in critically important areas, has resulted in a significant increase in key species populations in the Garamba National Park in the Democratic Republic of Congo near its Kibali mine. Barrick, through its partnership with African Parks and the Congolese Institute for the Conservation of Nature (ICCN), is also the sole sponsor to reintroduce white rhino to the park in 2022.
“Conserving biodiversity is fundamental to planetary survival, essential to tackling climate change and has an important role to play in the war on poverty. We strive not only to preserve and maintain biodiversity within our permits but to partner with NGOs and other organizations, to protect and restore critical biodiversity in some of the world’s most ecologically sensitive places,” says Beringer.
The latest report is now aligned to the Sustainability Accounting Standards Board’s (SASB) reporting requirements for metals and mining and continues to conform to the Global Reporting Initiative’s ‘GRI Standards: Core option’ as well as the Task Force on Climate-related Financial Disclosures (TCFD) framework.
*FUNDING THE RE-INTRODUCTION OF WHITE RHINOS TO THE GARAMBA NATIONAL PARK IN THE DRC*
*Measurable conservation action focused on threatened species abatement and restoration*
Barrick wants to restore the white rhino population at the Garamba National Park in the DRC and has partnered with African Parks and the Congolese Institute for the Conservation of Nature (ICCN) to fund the transfer of at least 50 rhinos from South Africa in 2022.
The Garamba National Park, located 70km north of the Kibali mine in the north-east of the DRC, covers an area greater than 5,000km^2 and is adjacent to four contiguous reserves with an additional 10,000km^2. It is one of Africa’s oldest national parks and a UNESCO World Heritage Site. The park has been placed on the list of World Heritage Sites in danger, following years of armed conflict, civil wars and poaching that has resulted in steep declines in its wildlife populations.
Barrick has provided support to the park since 2015, with a view to protecting and restoring its biodiversity and resulting in a notable improvement in the herd size of the endangered Kordofan giraffe, which has grown from 22 individuals in 2012 to 65 last year. Similarly, buffalo populations have also steadily grown with average herd sizes ranging from 20 to nearly 500 individuals. Furthermore, there has not been an instance of elephant poaching since September 2020.
*UPDATED GHG ROADMAP OUTLINES JOURNEY TO 2050*
*Sun to help power journey to Net Zero*
Solar power will account for approximately a third of the total reduction in the GHG emissions that Barrick plans to achieve by 2030, according to the latest GHG Reduction Roadmap published in its 2021 Sustainability Report.
Barrick’s GHG Reduction Roadmap outlines the renewable energy projects that are contributing to or have the potential to help meet its target of reducing total emissions by 30% by 2030 as well as its course to be Net Zero by 2050. Solar power is expected to account for 681kt of the 2,262kt Barrick needs to reduce its total annual GHG emissions to 5,279kt CO[2]e by 2030 against a 2018 baseline of 7,541kt CO[2]e.
In addition to the 20MW solar power plant at Loulo (27kt estimated reduction of CO[2]e per year) completed in 2020, work has begun on an estimated $262 million 200MW solar facility with battery storage in Nevada. The facility is expected to satisfy approximately 15% of Nevada Gold Mines’ (NGM) total electricity requirements and should reduce Barrick’s GHG emissions by 254kt per year, which is equivalent to taking almost 34,000 cars off the road.
Other projects being investigated include expansions to the solar plants at Loulo (54kt estimated reduction of CO[2]e) and Nevada (254kt CO[2]e), as well as additional solar installations at Jabal Sayid (11kt estimated reduction of CO[2]e), Kibali (12kt estimated reduction of CO[2]e) and Pueblo Viejo (69kt estimated reduction of CO[2]e). Approximately $850 million has been spent or budgeted for renewable energy and GHG emissions reduction projects, all of which meet the Company’s required 15% internal rate of return.
*PUEBLO VIEJO MOVES FORWARD WITH LIFE OF MINE EXTENSION PROJECT*
*The Dominican Government has completed its strategic review of the location of the new Tailings Storage Facility (TSF) for the Pueblo Viejo mine in the Dominican Republic. The new TSF forms part of the expansion project that is designed to extend the Tier One mine’s life to beyond 2040 and support annual production in excess of 800,000 ounces.*^*13*
The government, through their process, have identified a select number of alternatives for further assessment. At the same time, Barrick conducted its own alternatives assessment, completed by a multidisciplinary team of external subject matter experts from various independent consulting companies.
Several sites were initially identified and after various screening phases, which considered environmental, social, and technical factors, potentially feasible sites were identified for further evaluation. The two separate assessments independently identified four alternative sites, of which two sites, located in the Sanchez Ramirez Province, would be put forward for further investigation.
Barrick president and chief executive Mark Bristow said that although these alternative sites existed as determined by the reviews, the final location and construction of the facility would be subject to the completion of an Environmental and Social Impact Assessment (ESIA) in accordance with Dominican Republic legislation and international standards. Once completed, the ESIA would be submitted to the government for evaluation and final decision.
The ESIA will identify and implement mechanisms to mitigate potential environmental impacts as well as initiatives to improve the livelihoods of the communities. Barrick is committed to following international standards and will adhere to the Global Industry Standard on Tailings Management in terms of design, construction, operation, and closure of the tailings storage facility.
The new TSF would enable operations at Pueblo Viejo to continue beyond 2040. As a major creator of value for the Dominican Republic, the project will stop the decline in production, and will facilitate the continued payment of taxes, exportation, jobs, national and local purchases, and social benefits the mine brings to the country.
In 2021, the Tier One mine paid $527 million in direct and indirect taxes which brings total tax payments since 2013 to more than $3 billion.
“Our goal in the Dominican Republic, as elsewhere in the world, is to create long-term value for all our stakeholders through our strategy of sustainable development. Pueblo Viejo’s expansion project is expected to increase total direct and indirect taxes to over $9 billion from the beginning of commercial production in 2013 through to the extended life of mine beyond 2040^18,” Bristow said.
*BARRICK ANNUAL REPORT PUBLISHED*
*The 2021 Annual Report was published in March*
Barrick’s 2021 Annual Report, Annual Information Form and Form 40-F are available on SEDAR (www.sedar.com) and EDGAR (www.sec.gov), respectively. Updated National Instrument 43-101 technical reports for each of the Kibali Gold Mine and the Cortez Complex, current as of December 31, 2021, are also available on SEDAR and EDGAR.
To access the above-mentioned documents, please visit www.barrick.com. Shareholders may also receive a copy of Barrick’s audited financial statements without charge upon request to Barrick’s Investor Relations Department, 161 Bay Street, Suite 3700, Toronto, Ontario, M5J 2S1 or to investor@barrick.com.
*Barrick expands global footprint in hunt for high-quality assets*
Barrick is continuing to invest in its future through the development of capital projects that will expand and enhance an operating platform which already holds some of the industry’s best assets, says president and chief executive Mark Bristow.
Writing in the Company’s 2021 Annual Report Bristow says that, while building on this value foundation, Barrick was also expanding its presence into new prospective areas in its hunt for high-quality assets.
“A specialist Asia-Pacific team, set up to look at opportunities in that region, has acquired exploration permits in Japan and are hunting for additional opportunities in that region. We are also investigating projects across the Nubian and Arabian Shields in North Africa and the Middle East. We have put a particularly strong focus on exploration in Latin America, where our teams are testing a portfolio of targets on the El Indio belt along the border between Argentina and Chile. We have also added ground in Peru and started fieldwork on new projects in Guyana and Suriname.”
“We are working on a well-defined strategy to grow our business in Canada where I believe we are under-invested. A significant exploration portfolio has been secured in the country’s Uchi Belt and the team is also looking at other opportunities in the country.”
Bristow says Barrick has mapped out and is advancing on a clear road to achievable GHG emissions reduction targets and its long-standing commitment to ESG principles informs all its business decisions.
“The Social component of ESG tends to be overshadowed by its Environmental counterpart, but for Barrick it is the socio-economic state of our less-developed host countries that is critically important, and much of our sustainability strategy is directed at ensuring that our host communities are not negatively impacted by the world’s transition to a green economy.”
“Our drive to employ the next generation of mining talent remained steady, with 56% of our workforce now under the age of 40 and 19%^[19] under 30. Throughout the period we also continued to increase our gender diversity, and last year 17% of new hires globally were women. Barrick believes in empowering our people to thrive in a decentralized structure with lean regional teams designed for agility and focused on creating value for all our stakeholders,” says Bristow.
*Barrick set to deliver substantial future free cash flows*
Barrick is built on a foundation of six Tier One gold mines with rolling 10-year plans which secure the Company’s ability to generate substantial free cash flows^[1] for the next decade and beyond, says executive chairman John Thornton.
Writing in the Company’s 2021 Annual Report, Thornton notes that in September 2018, when the Randgold merger was announced, Barrick had net debt in excess of $4 billion. Since then, it has not only moved into a net cash position but has returned $2.5 billion of cash to shareholders, including last year’s record distribution of $1.4 billion.
“As previously announced, after careful consideration of our capital allocation, the board has settled on a new dividend policy comprising a base dividend with an additional performance dividend linked to the net cash on the balance sheet, starting in 2022. We believe this will give our shareholders guidance on future dividend streams^14,” he says.
“The board has also approved a $1 billion share buyback plan which will afford us the opportunity to acquire our shares when they are trading below what we consider to be their intrinsic value.”^[20]
*S&P UPGRADES BARRICK TO BBB+ WITH STABLE OUTLOOK*
S&P Global Ratings has upgraded Barrick’s long-term corporate credit rating to BBB+ from BBB, with a stable outlook. This follows a similar upgrade to Baa1 by Moody’s Investors Service in October 2020.
*Appendix 1*
*2022 Operating and Capital Expenditure Guidance*
*GOLD PRODUCTION AND COSTS* 2022 forecast
attributable production
(000s oz) 2022 forecast
cost of sales^8 ($/oz) 2022 forecast total
cash costs^9 ($/oz) 2022 forecast all-in
sustaining costs^9 ($/oz)
Carlin (61.5%)^21 950 - 1,030 900 - 980 730 - 790 1,020 - 1,100
Cortez (61.5%)^22 480 - 530 970 - 1,050 650 - 710 1,010 - 1,090
Turquoise Ridge (61.5%) 330 - 370 1,110 - 1,190 770 - 830 930 - 1,010
Phoenix (61.5%) 90 - 120 2,000 - 2,080 720 - 780 890 - 970
Long Canyon (61.5%) 40 - 50 1,420 - 1,500 540 - 600 540 - 620
Nevada Gold Mines (61.5%) 1,900 - 2,100 1,020 - 1,100 710 - 770 990 - 1,070
Hemlo 160 - 180 1,340 - 1,420 1,140 - 1,200 1,510 - 1,590
North America 2,100 - 2,300 1,050 - 1,130 740 - 800 1,040 - 1,120
Pueblo Viejo (60%) 400 - 440 1,070 - 1,150 670 - 730 910 - 990
Veladero (50%) 220 - 240 1,210 - 1,290 740 - 800 1,270 - 1,350
Porgera (47.5%)^23 — — — —
Latin America & Asia Pacific 620 - 680 1,140 - 1,220 700 - 760 1,040 - 1,120
Loulo-Gounkoto (80%) 510 - 560 1,070 - 1,150 680 - 740 940 - 1,020
Kibali (45%) 340 - 380 990 - 1,070 600 - 660 800 - 880
North Mara (84%) 230 - 260 820 - 900 670 - 730 930 - 1,010
Tongon (89.7%) 170 - 200 1,700 - 1,780 1,220 - 1,280 1,400 - 1,480
Bulyanhulu (84%) 180 - 210 950 - 1,030 630 - 690 850 - 930
Africa & Middle East 1,450 - 1,600 1,070 - 1,150 720 - 780 950 - 1,030
*Total Attributable to Barrick*^*24,25,26* 4,200 - 4,600 1,070 - 1,150 730 - 790 1,040 - 1,120
*COPPER PRODUCTION AND COSTS* 2022 forecast
attributable production
(Mlbs) 2022 forecast cost
of sales^8 ($/lb) 2022 forecast C1
cash costs^10 ($/lb) 2022 forecast all-in
sustaining costs^10
($/lb)
Lumwana 250 - 280 2.20 - 2.50 1.60 - 1.80 3.10 - 3.40
Zaldívar (50%) 100 - 120 2.70 - 3.00 2.00 - 2.20 2.50 - 2.80
Jabal Sayid (50%) 70 - 80 1.40 - 1.70 1.30 - 1.50 1.30 - 1.60
*Total Attributable to Barrick*^*25* 420 - 470 2.20 - 2.50 1.70 - 1.90 2.70 - 3.00
*ATTRIBUTABLE CAPITAL EXPENDITURES* ($ millions)
Attributable minesite sustaining^6 1,350 - 1,550
Attributable project^6 550 - 650
*Total attributable capital expenditures*^*7* 1,900 - 2,200
*
*
*2022 OUTLOOK ASSUMPTIONS AND ECONOMIC SENSITIVITY ANALYSIS*
2022 Guidance
Assumption Hypothetical Change Impact on EBITDA^27
(millions) Impact on TCC and
AISC^9,10
Gold price sensitivity $1,700/oz +/- $100/oz +/- $580 +/- $5/oz
Copper price sensitivity $4.00/lb +/- $0.25/lb +/- $60 +/- $0.01/lb
*
*
*Appendix 2*
*Production and Cost Summary - Gold*
For the three months ended *3/31/22* 12/31/21 % Change 3/31/21 % Change
*Nevada Gold Mines LLC (61.5%)*^*a*
Gold produced (000s oz attributable basis) *459* 604 (24)% 485 (5)%
Gold produced (000s oz 100% basis) *747* 981 (24)% 789 (5)%
Cost of sales ($/oz) *1,169* 1,023 14% 1,047 12%
Total cash costs ($/oz)^b *820* 687 19% 686 20%
All-in sustaining costs ($/oz)^b *1,118* 893 25% 932 20%
*Carlin (61.5%)*^*c*
Gold produced (000s oz attributable basis) *229* 295 (22)% 229 0%
Gold produced (000s oz 100% basis) *373* 479 (22)% 373 0%
Cost of sales ($/oz) *1,015* 899 13% 950 7%
Total cash costs ($/oz)^b *829* 728 14% 766 8%
All-in sustaining costs ($/oz)^b *1,139* 950 20% 1,045 9%
*Cortez (61.5%)*^*d*
Gold produced (000s oz attributable basis) *115* 169 (32)% 100 15%
Gold produced (000s oz 100% basis) *187* 275 (32)% 163 15%
Cost of sales ($/oz) *1,113* 984 13% 1,251 (11)%
Total cash costs ($/oz)^b *784* 657 19% 860 (9)%
All-in sustaining costs ($/oz)^b *1,150* 853 35% 1,203 (4)%
*Turquoise Ridge (61.5%)*
Gold produced (000s oz attributable basis) *67* 82 (18)% 92 (27)%
Gold produced (000s oz 100% basis) *109* 133 (18)% 149 (27)%
Cost of sales ($/oz) *1,436* 1,194 20% 1,007 43%
Total cash costs ($/oz)^b *1,030* 819 26% 647 59%
All-in sustaining costs ($/oz)^b *1,281* 996 29% 741 73%
*Phoenix (61.5%)*^*c*
Gold produced (000s oz attributable basis) *23* 25 (8)% 25 (8)%
Gold produced (000s oz 100% basis) *37* 41 (8)% 41 (8)%
Cost of sales ($/oz) *2,253* 2,047 10% 2,051 10%
Total cash costs ($/oz)^b *835* 443 88% 346 141%
All-in sustaining costs ($/oz)^b *1,027* 614 67% 530 94%
*Long Canyon (61.5%)*
Gold produced (000s oz attributable basis) *25* 33 (24)% 39 (36)%
Gold produced (000s oz 100% basis) *41* 53 (24)% 63 (36)%
Cost of sales ($/oz) *1,093* 999 9% 511 114%
Total cash costs ($/oz)^b *342* 325 5% 79 333%
All-in sustaining costs ($/oz)^b *366* 384 (5)% 156 135%
*Pueblo Viejo (60%)*
Gold produced (000s oz attributable basis) *104* 107 (3)% 137 (24)%
Gold produced (000s oz 100% basis) *174* 178 (3)% 229 (24)%
Cost of sales ($/oz) *1,077* 987 9% 816 32%
Total cash costs ($/oz)^b *682* 612 11% 507 35%
All-in sustaining costs ($/oz)^b *948* 858 10% 689 38%
*Loulo-Gounkoto (80%)*
Gold produced (000s oz attributable basis) *138* 126 10% 154 (10)%
Gold produced (000s oz 100% basis) *172* 158 10% 193 (10)%
Cost of sales ($/oz) *1,088* 1,139 (4)% 974 12%
Total cash costs ($/oz)^b *721* 685 5% 608 19%
All-in sustaining costs ($/oz)^b *982* 822 19% 920 7%
*Kibali (45%)*
Gold produced (000s oz attributable basis) *76* 94 (19)% 86 (12)%
Gold produced (000s oz 100% basis) *168* 209 (19)% 192 (12)%
Cost of sales ($/oz) *1,137* 979 16% 1,065 7%
Total cash costs ($/oz)^b *744* 582 28% 691 8%
All-in sustaining costs ($/oz)^b *996* 776 28% 856 16%
*Veladero (50%)*
Gold produced (000s oz attributable basis) *46* 61 (25)% 32 44%
Gold produced (000s oz 100% basis) *92* 122 (25)% 64 44%
Cost of sales ($/oz) *1,348* 1,279 5% 1,151 17%
Total cash costs ($/oz)^b *847* 834 2% 736 15%
All-in sustaining costs ($/oz)^b *1,588* 1,113 43% 2,104 (25) %
*Porgera (47.5%)*^*e*
Gold produced (000s oz attributable basis) *—* — —% — —%
Gold produced (000s oz 100% basis) *—* — —% — —%
Cost of sales ($/oz) *—* — —% — —%
Total cash costs ($/oz)^b *—* — —% — —%
All-in sustaining costs ($/oz)^b *—* — —% — —%
*Tongon (89.7%)*
Gold produced (000s oz attributable basis) *35* 50 (30)% 48 (27)%
Gold produced (000s oz 100% basis) *39* 56 (30)% 54 (27)%
Cost of sales ($/oz) *2,036* 1,494 36% 1,510 35%
Total cash costs ($/oz)^b *1,667* 1,205 38% 995 68%
All-in sustaining costs ($/oz)^b *1,803* 1,301 39% 1,062 70%
*Hemlo*
Gold produced (000s oz) *31* 35 (11)% 47 (34)%
Cost of sales ($/oz) *1,727* 1,770 (2)% 1,610 7%
Total cash costs ($/oz)^b *1,503* 1,481 1% 1,324 14%
All-in sustaining costs ($/oz)^b *1,982* 1,938 2% 1,840 8%
*North Mara (84%)*
Gold produced (000s oz attributable basis) *56* 69 (19)% 62 (10)%
Gold produced (000s oz 100% basis) *66* 82 (19)% 74 (10)%
Cost of sales ($/oz) *852* 858 (1)% 1,061 (20)%
Total cash costs ($/oz)^b *709* 679 4% 832 (15)%
All-in sustaining costs ($/oz)^b *874* 1,033 (15)% 1,038 (16)%
*Buzwagi (84%)*^*f*
Gold produced (000s oz attributable basis) 17
Gold produced (000s oz 100% basis) 20
Cost of sales ($/oz) 1,486
Total cash costs ($/oz)^b 1,450
All-in sustaining costs ($/oz)^b 1,467
*Bulyanhulu (84%)*
Gold produced (000s oz attributable basis) *45* 57 (21)% 33 36%
Gold produced (000s oz 100% basis) *53* 68 (21)% 39 36%
Cost of sales ($/oz) *1,216* 956 27% 1,211 0%
Total cash costs ($/oz)^b *847* 567 49% 865 (2)%
All-in sustaining costs ($/oz)^b *984* 897 10% 957 3%
*Total Attributable to Barrick*^*g*
Gold produced (000s oz) *990* 1,203 (18)% 1,101 (10)%
Cost of sales ($/oz)^h *1,190* 1,075 11% 1,073 11%
Total cash costs ($/oz)^b *832* 715 16% 716 16%
All-in sustaining costs ($/oz)^b *1,164* 971 20% 1,018 14%
1. These results represent our 61.5% interest in Carlin (including NGM's 60% interest in South Arturo up until May 30, 2021 and 100% interest thereafter, reflecting the terms of the Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not already own in exchange for the Lone Tree and Buffalo Mountain properties and infrastructure, which closed on October 14, 2021), Cortez, Turquoise Ridge, Phoenix and Long Canyon.
2. Further information on these non-GAAP financial performance measures, including detailed reconciliations, is included in the endnotes to this press release.
3. On September 7, 2021, NGM announced it had entered into an Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not already own in exchange for the Lone Tree and Buffalo Mountain properties and infrastructure. Operating results within our 61.5% interest in Carlin includes NGM's 60% interest in South Arturo up until May 30, 2021, and 100% interest thereafter, and operating results within our 61.5% interest in Phoenix includes Lone Tree up until May 31, 2021, reflecting the terms of the Exchange Agreement which closed on October 14, 2021.
4. Includes Goldrush.
5. As Porgera was placed on care and maintenance on April 25, 2020, no operating data or per ounce data is provided.
6. With the end of mining at Buzwagi in the third quarter of 2021, as previously disclosed, we have ceased to include production or non-GAAP cost metrics for Buzwagi from October 1, 2021 onwards.
7. Excludes Pierina, Golden Sunlight, Lagunas Norte up until its divestiture in June 2021, and Buzwagi starting in the fourth quarter of 2021. Some of these assets are producing incidental ounces while in closure or care and maintenance.
8. Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using Barrick's ownership share).
*
*
*Production and Cost Summary - Copper *
For the three months ended *3/31/22* 12/31/21 % Change 3/31/21 % Change
*Lumwana*
Copper production (Mlbs) *57* 78 (27)% 51 12%
Cost of sales ($/lb) *2.20* 2.16 2% 1.97 12%
C1 cash costs ($/lb)^a *1.86* 1.54 21% 1.48 26%
All-in sustaining costs ($/lb)^a *3.16* 3.29 (4)% 2.37 33%
*Zald**í**var (50%)*
Copper production (Mlbs attributable basis) *25* 27 (7)% 24 4%
Copper production (Mlbs 100% basis) *51* 54 (7)% 48 4%
Cost of sales ($/lb) *2.85* 3.14 (9)% 3.03 (6)%
C1 cash costs ($/lb)^a *2.15* 2.35 (9)% 2.25 (4)%
All-in sustaining costs ($/lb)^a *2.64* 3.42 (23)% 2.47 7%
*Jabal Sayid (50%)*
Copper production (Mlbs attributable basis) *19* 21 (10)% 18 6%
Copper production (Mlbs 100% basis) *38* 42 (10)% 36 6%
Cost of sales ($/lb) *1.30* 1.36 (4)% 1.21 7%
C1 cash costs ($/lb)^a *1.10* 1.11 (1)% 1.06 4%
All-in sustaining costs ($/lb)^a *1.17* 1.27 (8)% 1.22 (4)%
*Total Attributable to Barrick*
Copper production (Mlbs attributable basis) *101* 126 (20)% 93 9%
Cost of sales ($/lb)^b *2.21* 2.21 0% 2.11 5%
C1 cash costs ($/lb)^a *1.81* 1.63 11% 1.60 13%
All-in sustaining costs ($/lb)^a *2.85* 2.92 (2)% 2.26 26%
1. Further information on these non-GAAP financial performance measures, including detailed reconciliations, is included in the endnotes to this press release.
2. Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick's ownership share).
*
*
*Appendix 3*
*Financial and Operating Highlights*
For the three months ended *3/31/22* 12/31/21 % Change 3/31/21 % Change
*Financial Results *($ millions)
Revenues *2,853* 3,310 (14 )% 2,956 (3 )%
Cost of sales *1,739* 1,905 (9 )% 1,712 2 %
Net earnings^a *438* 726 (40 )% 538 (19 )%
Adjusted net earnings^b *463* 626 (26 )% 507 (9 )%
Adjusted EBITDA^b *1,645* 2,070 (21 )% 1,800 (9 )%
Adjusted EBITDA margin^c *58* *%* 63 % (8 )% 61 % (5 )%
Minesite sustaining capital expenditures^b,d *420* 431 (3 )% 405 4 %
Project capital expenditures^b,d *186* 234 (21 )% 131 42 %
Total consolidated capital expenditures^d,e *611* 669 (9 )% 539 13 %
Net cash provided by operating activities *1,004* 1,387 (28 )% 1,302 (23 )%
Net cash provided by operating activities margin^f *35* *%* 42 % (17 )% 44 % (20 )%
Free cash flow^b *393* 718 (45 )% 763 (48 )%
Net earnings per share (basic and diluted) *0.25* 0.41 (39 )% 0.30 (17 )%
Adjusted net earnings (basic)^b per share *0.26* 0.35 (26 )% 0.29 (10 )%
Weighted average diluted common shares (millions of shares) *1,779* 1,779 % 1,778 %
*Operating Results*
Gold production (thousands of ounces)^g *990* 1,203 (18 )% 1,101 (10 )%
Gold sold (thousands of ounces)^g *993* 1,234 (20 )% 1,093 (9 )%
Market gold price ($/oz) *1,877* 1,795 5 % 1,794 5 %
Realized gold price^b,g ($/oz) *1,876* 1,793 5 % 1,777 6 %
Gold cost of sales (Barrick’s share)^g,h ($/oz) *1,190* 1,075 11 % 1,073 11 %
Gold total cash costs^b,g ($/oz) *832* 715 16 % 716 16 %
Gold all-in sustaining costs^b,g ($/oz) *1,164* 971 20 % 1,018 14 %
Copper production (millions of pounds)^g *101* 126 (20 )% 93 9 %
Copper sold (millions of pounds)^g *113* 113 % 113 %
Market copper price ($/lb) *4.53* 4.40 3 % 3.86 17 %
Realized copper price^b,g ($/lb) *4.68* 4.63 1 % 4.12 14 %
Copper cost of sales (Barrick’s share)^g,i ($/lb) *2.21* 2.21 % 2.11 5 %
Copper C1 cash costs^b,g ($/lb) *1.81* 1.63 11 % 1.60 13 %
Copper all-in sustaining costs^b,g ($/lb) *2.85* 2.92 (2 )% 2.26 26 % *As at
3/31/22* As at
12/31/21 % Change As at
3/31/21 % Change
*Financial Position *($ millions)
Debt (current and long-term) *5,144* 5,150 % 5,153 %
Cash and equivalents *5,887* 5,280 11 % 5,672 4 %
Debt, net of cash *(743* *)* (130 ) 472 % (519 ) 43 %
1. Net earnings represents net earnings attributable to the equity holders of the Company.
2. Further information on these non-GAAP financial performance measures, including detailed reconciliations, is included in the endnotes to this press release.
3. Represents adjusted EBITDA divided by revenue.
4. Amounts presented on a consolidated cash basis. Project capital expenditures are included in our calculation of all-in costs, but not included in our calculation of all-in sustaining costs.
5. Total consolidated capital expenditures also includes capitalized interest of $5 million for the three month period ended March 31, 2022 (December 31, 2021: $4 million and March 31, 2021: $3 million).
6. Represents net cash provided by operating activities divided by revenue.
7. On an attributable basis.
8. Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using Barrick's ownership share).
9. Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick's ownership share).
*Consolidated Statements of Income*
Barrick Gold Corporation
(in millions of United States dollars, except per share data) (Unaudited) Three months ended
March 31, *2022* 2021
*Revenue (notes 5 and 6)* *$**2,853* $2,956
*Costs and expenses (income)*
Cost of sales (notes 5 and 7) *1,739* 1,712
General and administrative expenses *54* 38
Exploration, evaluation and project expenses *67* 61
Impairment (reversals) charges (notes 9b and 13) *2* (89 )
Loss on currency translation *3* 4
Closed mine rehabilitation *3* 23
Income from equity investees (note 12) *(99* *)* (103 )
Other (income) expense (note 9a) *(11* *)* 19
*Income before finance costs and income taxes* *$**1,095* $1,291
Finance costs, net *(88* *)* (87 )
*Income before income taxes* *$**1,007* $1,204
Income tax expense (note 10) *(301* *)* (374 )
*Net income* *$**706* $830
*Attributable to:*
Equity holders of Barrick Gold Corporation *$**438* $538
Non-controlling interests (note 16) *$**268* $292
*Earnings per share data attributable to the equity holders of Barrick Gold Corporation (note 8)*
Net income
Basic *$**0.25* $0.30
Diluted *$**0.25* $0.30
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
*Consolidated Statements of Comprehensive Income*
Barrick Gold Corporation
(in millions of United States dollars) (Unaudited) Three months ended
March 31, *2022* 2021
Net income *$**706* $830
*Other comprehensive income (loss), net of taxes*
*Items that will not be reclassified to profit or loss:*
Net change on equity investments, net of tax ($8) and $8 *58* (47 )
*Total other comprehensive income (loss)* *58* (47 )
*Total comprehensive income* *$**764* $783
*Attributable to:*
Equity holders of Barrick Gold Corporation *$**496* $491
Non-controlling interests *$**268* $292
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
*Consolidated Statements of Cash Flow*
Barrick Gold Corporation
(in millions of United States dollars) (Unaudited) Three months ended
March 31, *2022* 2021
*OPERATING ACTIVITIES*
Net income *$**706* $830
Adjustments for the following items:
Depreciation *460* 507
Finance costs, net *98* 94
Impairment (reversals) charges (notes 9b and 13) *2* (89 )
Income tax expense (note 10) *301* 374
Income from equity investees (note 12) *(99* *)* (103 )
Gain on sale of non-current assets *(2* *)* (3 )
Loss on currency translation *3* 4
Change in working capital (note 11) *(131* *)* (58 )
Other operating activities (note 11) *(77* *)* (34 )
Operating cash flows before interest and income taxes *1,261* 1,522
Interest paid *(23* *)* (22 )
Income taxes paid^1 *(234* *)* (198 )
*Net cash provided by operating activities* *1,004* 1,302
*INVESTING ACTIVITIES*
Property, plant and equipment
Capital expenditures (note 5) *(611* *)* (539 )
Sales proceeds *1* 4
Investment sales *260* —
Dividends received from equity method investments (note 12) *359* 126
Shareholder loan repayments from equity method investments (note 12) *—* 1
*Net cash provided by (used in) investing activities* *9* (408 )
*FINANCING ACTIVITIES*
Lease repayments *(6* *)* (6 )
Debt repayments *—* (7 )
Dividends *(178* *)* (158 )
Funding from non-controlling interests (note 16) *—* 6
Disbursements to non-controlling interests (note 16) *(267* *)* (265 )
Pueblo Viejo JV partner shareholder loan *45* 21
*Net cash used in financing activities* *(406* *)* (409 )
*Effect of exchange rate changes on cash and equivalents* *—* (1 )
Net increase in cash and equivalents *607* 484
*Cash and equivalents at the beginning of period* *5,280* 5,188
*Cash and equivalents at the end of period* *$**5,887* $5,672
^1. Income taxes paid excludes $26 million (2021: $36 million) of income taxes payable that were settled against offsetting VAT receivables.The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
*Consolidated Balance Sheets*
Barrick Gold Corporation *As at March 31,**
* As at December 31,
(in millions of United States dollars) (Unaudited) *2022* 2021
*ASSETS*
Current assets
Cash and equivalents *$**5,887* $5,280
Accounts receivable *640* 623
Inventories *1,766* 1,734
Other current assets *722* 612
Total current assets *$**9,015* $8,249
Non-current assets
Equity in investees (note 12) *4,334* 4,594
Property, plant and equipment *25,153* 24,954
Goodwill *4,769* 4,769
Intangible assets *149* 150
Deferred income tax assets *15* 29
Non-current portion of inventory *2,639* 2,636
Other assets *1,232* 1,509
*Total assets* *$**47,306* $46,890
*LIABILITIES AND EQUITY*
Current liabilities
Accounts payable *$**1,525* $1,448
Debt *14* 15
Current income tax liabilities *342* 285
Other current liabilities *366* 338
Total current liabilities *$**2,247* $2,086
Non-current liabilities
Debt *5,130* 5,135
Provisions *2,738* 2,768
Deferred income tax liabilities *3,308* 3,293
Other liabilities *1,257* 1,301
*Total liabilities* *$**14,680* $14,583
Equity
Capital stock (note 15) *$**28,497* $28,497
Deficit *(6,306* *)* (6,566 )
Accumulated other comprehensive income (loss) *35* (23 )
Other *1,949* 1,949
*Total equity attributable to Barrick Gold Corporation shareholders* *$**24,175* $23,857
Non-controlling interests (note 16) *8,451* 8,450
*Total equity* *$**32,626* $32,307
Contingencies and commitments (notes 5 and 17)
*Total liabilities and equity* *$**47,306* $46,890
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
*Consolidated Statements of Changes in Equity*
Barrick Gold Corporation Attributable to equity holders of the company
(in millions of United States dollars) (Unaudited) Common Shares (in thousands) Capital stock Retained earnings (deficit) Accumulated other comprehensive income (loss)^1 Other^2 Total equity attributable to shareholders Non-controlling interests Total equity
*At January 1, 2022* *1,779,331* *$**28,497* *($**6,566* *)* *($**23* *)* *$**1,949* *$**23,857* *$**8,450* *$**32,307*
Net income — — 438 — — 438 268 706
Total other comprehensive income (loss) — — — 58 — 58 — 58
Total comprehensive income — — 438 58 — 496 268 764
Transactions with owners
Dividends — — (178 ) — — (178 ) — (178 )
Disbursements to non-controlling interests (note 16) — — — — — — (267 ) (267 )
Dividend reinvestment plan (note 15) 25 — — — — — — —
Total transactions with owners 25 — (178 ) — — (178 ) (267 ) (445 )
*At March 31, 2022* *1,779,356* *$**28,497* *($**6,306* *)* *$**35* *$**1,949* *$**24,175* *$**8,451* *$**32,626*
*At January 1, 2021* *1,778,190* *$**29,236* *($**7,949* *)* *$**14* *$**2,040* *$**23,341* *$**8,369* *$**31,710*
Net income — — 538 — — 538 292 830
Total other comprehensive income (loss) — — — (47 ) — (47 ) — (47 )
Total comprehensive income (loss) — — 538 (47 ) — 491 292 783
Transactions with owners
Dividends — — (158 ) — — (158 ) — (158 )
Issued on exercise of stock options 50 — — — — — — —
Funding from non-controlling interests — — — — — — 6 6
Disbursements to non-controlling interests — — — — — — (262 ) (262 )
Dividend reinvestment plan 72 2 (2 ) — — — — —
Share-based payments 59 — — — — — — —
Total transactions with owners 181 2 (160 ) — — (158 ) (256 ) (414 )
*At March 31, 2021* *1,778,371* *$**29,238* *($**7,571* *)* *($**33* *)* *$**2,040* *$**23,674* *$**8,405* *$**32,079*
^1. Includes cumulative translation losses at March 31, 2022: $94 million (December 31, 2021: $94 million; March 31, 2021: $95 million).
^2. Includes additional paid-in capital as at March 31, 2022: $1,911 million (December 31, 2021: $1,911 million; March 31, 2021: $2,002 million).
The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
*Technical Information*
The scientific and technical information contained in this press release has been reviewed and approved by Craig Fiddes, SME-RM, Manager – Resource Modeling, Nevada Gold Mines; Chad Yuhasz, P.Geo, Mineral Resource Manager, Latin America & Asia Pacific; Simon Bottoms, CGeol, MGeol, FGS, F