Sustainability Focus Drives Barrick’s Performance
*Second Quarter 2022 Results
*All amounts expressed in US dollars
TORONTO, Aug. 08, 2022 (GLOBE NEWSWIRE) -- A stronger Q2 performance across the portfolio has kept Barrick on course to achieve its annual gold and copper production guidance while continuing to progress its key growth projects.
Gold production for the quarter was higher than Q1 at 1.04 million ounces — driven mainly by Carlin and Turquoise Ridge in Nevada, Veladero in Argentina, and Bulyanhulu and North Mara in Tanzania — and is expected to grow further in the second half of the year. Copper production came to 120 million pounds.
Operating cash flow was $924 million and free cash flow^1 was $169 million for the quarter. Net earnings per share were $0.27 and adjusted net earnings per share^2 were $0.24. A dividend of $0.20 per share was declared for the quarter on the back of the strong operating performance and net cash of $636 million.^3 During the quarter, Barrick repurchased $182 million in shares under the $1 billion share buy-back scheme introduced earlier this year. It also repatriated the balance of Kibali’s surplus cash from the Democratic Republic of Congo.
In the Dominican Republic, the Pueblo Viejo expansion project advanced with the commencement of the public consultation process and the selection of a preferred site for the new tailings storage facility, subject to the completion of an environmental and social impact assessment. The massive project has the potential to extend the mine’s life to 2040 and beyond with an estimated minimum average annual production of 800,000 ounces.^12
In Nevada, the public review period of the Goldrush project has started with the record of decision expected in the first half of 2023, when the production timetable will be confirmed. The definitive agreements underlying the framework agreement between Barrick and the governments of Pakistan and Balochistan on the Reko Diq project are being finalized. Once this process has been completed and the necessary legalization steps have been taken, Barrick will update its feasibility study on what is one of world’s largest undeveloped copper-gold deposits, with first production expected in 2027/2028.
Barrick is continuing to expand its global exploration footprint with a strengthened team. In North America the search has extended from Nevada to active projects in Canada. The intensified exploration drive in Latin America led to an entry into the Guiana Shield, and in Africa & the Middle East, new projects have been initiated in Zambia, Tanzania and Egypt. A new Asia Pacific team is making progress at Reko Diq, as well as Japan, while also looking for fresh opportunities elsewhere in this region.
Reviewing the quarter, president and chief executive Mark Bristow said the critical scrutiny of ESG and sustainability disclosures was intensifying in a climate of skepticism about so-called greenwashing. Against this background, Barrick’s annual Sustainability Scorecard, an industry first, continues to report the group’s performance transparently and objectively against a wide range of standard metrics.
“We’ve taken the leadership in integrating the various aspects of ESG and managing these complex issues in a measured and holistic manner,” he said.
“There are challenging times ahead, but Barrick faces them with strong and agile leadership, a robust balance sheet, solid Life of Mine plans, a reliable cash flow and a strategy focused on sustainability and value creation.”
*KEY PERFORMANCE INDICATORS *
*Financial and Operating Highlights*
*Financial Results* *Q2 2022* *Q1 2022* *Q2 2021*
Realized gold price^4,5
($ per ounce) *1,861* 1,876 1,820
Net earnings
($ millions) *488* 438 411
Adjusted net earnings^2
($ millions) *419* 463 513
Net cash provided by operating activities
($ millions) *924* 1,004 639
Free cash flow^1
($ millions) *169* 393 (19 )
Net earnings per share
($) *0.27* 0.25 0.23
Adjusted net earnings per share^2
($) *0.24* 0.26 0.29
Attributable capital expenditures^6,7
($ millions) *587* 478 518
*Operating Results* *Q2 2022* *Q1 2022* *Q2 2021*
*Gold*
Production^5
(000s of ounces) *1,043* 990 1,041
Cost of sales (Barrick's share)^5,8
($ per ounce) *1,216* 1,190 1,107
Total cash costs^5,9
($ per ounce) *855* 832 729
All-in sustaining costs^5,9
($ per ounce) *1,212* 1,164 1,087
*Copper*
Production^5
(millions of pounds) *120* 101 96
Cost of sales (Barrick's share)^5,8
($ per pound) *2.11* 2.21 2.43
C1 cash costs^5,10
($ per pound) *1.70* 1.81 1.83
All-in sustaining costs^5,10
($ per pound) *2.87* 2.85 2.74
*Best Assets*
· Stronger Q2 performance across the portfolio keeps *Barrick on track to achieve 2022 production targets*
· *Goldrush Notice of Availability published in Federal Register* starting the public comment period
· *Significant progress made with the Pueblo Viejo expansion project* and additional tailings storage facility
· *Copper portfolio delivers* with growing prospectivity
· *Continued focus on brownfields and greenfields exploration*, driven by energized new leadership, delivers results*Leader in Sustainability*
· *Launched sustainability-linked credit facility*
· Progress made with *newly developed Scope 3 emissions reduction roadmap*
· North Mara received award for the *best community health outreach program in Tanzania*
· *Public hearings completed* for Pueblo Viejo’s new tailings storage facility
· *Year-on-year improvement in water reuse and recycling*
· *Seamless leadership succession *underpins Barrick’s management bench strength
*Delivering Value*
· Operating cash flow of $924 million and *free cash flow*^*1** of $169 million *for the quarter
· Net earnings per share of $0.27 and *adjusted net earnings per share*^*2** of $0.24* for the quarter
· *Remaining surplus cash balance repatriated from Kibali*
· Net cash of $636 million^3 supports a *$0.20 per share dividend for Q2 2022 *
· *~$182 million of shares repurchased* under our $1 billion buy-back program^11
*Q2 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 Q2 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.*QUARTERLY DIVIDEND OF $0.20 PER SHARE MAINTAINED*
*Barrick today announced the declaration of a dividend of $0.20 per share in respect of performance for the second quarter of 2022.*
The dividend, which is unchanged from Q1, is consistent with the Company’s Performance Dividend Policy announced at the start of the year.
The Q2 2022 dividend will be paid on September 15, 2022 to shareholders of record at the close of business on August 31, 2022.^13
“On the back of our strong operating performance, we are once again able to provide a leading dividend yield to our shareholders, whilst still maintaining a strong balance sheet,” says senior executive vice-president and chief financial officer Graham Shuttleworth. “We believe this continues to show the benefit of the dividend policy that we announced in February 2022, including the guidance it provides to our shareholders on future dividend streams.”
*NGM BUILDING NEW GROWTH OPPORTUNITIES*
*Three years after establishing the joint venture that created the world’s largest gold mining complex, Nevada Gold Mines (“NGM”) is stepping out on its next phase by identifying new opportunities for discoveries and additions.*
In one of the largest and most complex mergers in the history of the industry, assets, operations, systems, people and cultures were combined successfully to build a business that will unlock the full potential of the region and create value for all stakeholders, deliver real jobs and be a key partner to Nevada. Its workforce of more than 7,000 already makes it one of the state’s largest employers.
In its short life, NGM has produced 10 million ounces of gold^15 and generated significant free cash. Greatly improved knowledge of the orebodies support robust 10-year plans and increased the pre-merger life of mine substantially. At the existing operations, brownfields exploration is replacing reserves depleted by mining and identifying new targets while the greenfields team is hunting further afield for a new Tier One^14 discovery in North America to further augment the existing NGM portfolio.
NGM’s journey to its next growth phase is being guided by a strengthened management team, led by Christine Keener, who joined Barrick earlier this year as chief operating officer of its North America region. Peter Richardson has been appointed incoming executive managing director of NGM, replacing Greg Walker who retires at the end of the year.
A new North America organizational structure, incorporating NGM, has been designed to integrate and strengthen mineral resource management, operational and project leadership to drive continued performance improvements and support regional growth.
NGM continues to invest in people, both current and future employees, through education partnerships and training programs. It supports the College of Southern Nevada and the Clark County School District, where high school students can get certificates in industrial maintenance or diesel technology, and has renewed its partnership with Discovery Education® for the Nevada Department of Education’s outreach program. It is also working with the University of Nevada and the Great Basin College in Elko to develop mining-centered programs. Internally, NGM has established training mines and facilities for underground and surface mining, and process operations.
During the first half of the year, NGM posted and improved operational performance at all of its sites apart from Cortez, which is transitioning from Pipeline to Cortez Pits and the next phase of Crossroads. Going forward, the Goldrush project will drive further improvements at Cortez.
*BARRICK EXTENDS GLOBAL EXPLORATION REACH*
*Barrick continues to expand its global exploration footprint as a renewed and re-energized team hunts down opportunities across an expanding global footprint.*
In North America, the search has expanded from Nevada to active projects in Canada. The intensified exploration drive in Latin America led to an entry into the Guiana Shield, and in Africa & the Middle East, new projects have been initiated in Zambia, Tanzania and Egypt. A new Asia Pacific team is making progress towards the reconstitution and restart of Reko Diq in Pakistan, as well as Japan, while also looking for other fresh opportunities.
President and chief executive Mark Bristow said in pursuit of Barrick’s global growth strategy, significant changes have been made in the senior management of the exploration team, led by Joel Holliday.
Three of the four regional exploration teams – Latin America, Africa & Middle East and Asia Pacific – are now being managed by new vice-presidents, two of whom were internal appointments. In Canada, the recently created positions of exploration manager and new opportunities manager were filled and a dedicated growth manager for the Latin America and Asia Pacific regions has been appointed.
“Our geological teams now have strength in depth and we’re building a pipeline of high-potential managers and technical specialists. The highly experienced new appointees are already driving significant change and this renewed energy and focus is already delivering robust results,” Bristow said.
The exploration strategy is designed to:
· deliver short to medium term projects that will support improvements in mine plans;
· make new discoveries for Barrick’s Tier One gold and copper portfolio;
· optimize the value of major undeveloped projects; and
· identify and secure emerging opportunities early in their value curve.
*PUEBLO VIEJO EXPANSION PROJECT CONTINUES TO ADVANCE*
*Pueblo Viejo’s conversion into a long-life mine is progressing after discussions with the Dominican Republic’s government identified a site for the new tailings storage facility and the terms of reference for the environmental and social impact assessment were published.*
The mine was heading for closure because its vast resources could not be converted to reserves due to limitations on its current tailings storage facility. The massive integrated expansion has the potential to extend the mine's life to 2040 and beyond with an estimated minimum average annual production of 800,000 ounces.^12
This means that Pueblo Viejo, long the country’s largest corporate taxpayer, will be able to continue delivering value to its Dominican stakeholders for generations to come. In line with Barrick’s partnership philosophy, it is engaging with the local communities and authorities to keep them informed about the project.
In spite of a contractor workforce of 3,500 being added to the mine’s 2,700 permanent employees, Pueblo Viejo is maintaining an exemplary safety record. At the end of this year’s second quarter, the project had been injury free for 5 million hours or 10 months.
*BARRICK BUILDS ON TRANSFORMED TANZANIAN ASSETS*
*Barrick has been recognized as the largest contributor to Tanzanian government revenue in 2021, confirming its position as a key partner in the socio-economic development of the country.*
Since the company took control of North Mara and Bulyanhulu in September 2019, its total in-country investment has totaled $1.995 billion.^15 In the first half of this year, it has paid $158 million in taxes, royalties and levies, $42 million in distributions to the Government of Tanzania in the form of dividends and shareholder loans as well as $210 million to local suppliers. It has also now paid $140 million of its $300 million settlement with the government.
Barrick has committed $6 for every ounce of gold sold by the two mines to improving healthcare, education, infrastructure and access to potable water in their communities. A further $70 million has been allocated to investment in value-adding national projects, including mining related training and scientific facilities at Tanzanian universities.
“When we took over these mines they were a moribund burden on the government and their investors. In a very short time, we redesigned and re-engineered them, creating what are in effect two new mines. They are well placed to deliver their annual production guidance and have the potential to achieve a combined Tier One status in Barrick’s portfolio, meaning that they are capable of producing at least 500,000 ounces of gold annually for more than 10 years at the lower end of the cost spectrum as a combined complex,” president and chief executive Mark Bristow says.
“We are continuing to replace resources depleted by mining and we are targeting new opportunities as well, increasing our footprint around Bulyanhulu through the acquisition of six highly prospective licences. We’re also updating the geological models in the North Mara region and identifying potential targets elsewhere in Tanzania.”
Bulyanhulu now has a life of more than 20 years and continues to deliver a significant growth in reserves over and above depletion. Development of its new Deep West extension is scheduled to start this quarter. North Mara’s open pit has been successfully ramped up and the new Gena pushback is planned for the second half of the year. An investment of $65 million in water treatment and management has reduced the volume in North Mara’s tailings dam from 7 million m^3 to less than 800,000 m^3, returning it to its designed and legislated capacity.
In July, Bristow met with the elected Chairmen of the 11 villages around North Mara, as well as elders, officials, the District Commissioner and the local Member of Parliament, following a similar meeting in March. The Chairmen made constructive suggestions on solidifying the relationship and reaffirmed their satisfaction with Barrick’s sustainability and partnership policies and practices.
During the past quarter, Bulyanhulu was named the overall winner of the Tanzanian OSHA (Occupational Safety and Health Authority) award for 2022 while North Mara received the award for the best community health outreach program. An investment in a landmark potable water project, scheduled for completion in October, will benefit more than 30,000 people in four villages around North Mara.
In line with Barrick’s policy of local employment, Tanzanian nationals now account for 96% of the two mines’ workforces and 64% of their senior management are Tanzanians. The mines are also driving the increased employment of women in a traditionally male-dominated industry through targeted recruitment and development programs.
*AFTER 25 YEARS OF DELIVERING VALUE TO MALI BARRICK CONTINUES TO INVEST IN THE FUTURE*
*Barrick continues to invest in creating value for all stakeholders and in supporting the communities that host its mines, through among other things, the commissioning of the Gounkoto underground mine and the Gara West open pit, the continuing replacement of reserves, the extension of the solar power plant and the further strengthening of local partnerships as instances of the company’s long-term commitment to the country.*
“In the first half of the year we’ve contributed $337 million to the Malian economy in the form of taxes, royalties, dividends, salaries and payments to local suppliers, taking the lifetime contribution of Barrick, previously Randgold, to $8.5 billion. We’re particularly proud of the fact the Gara West pit is being mined for us by two Malian contractors we have mentored,” says Barrick president and chief executive Mark Bristow.
At the halfway mark of the year, the complex is on track to meet its production guidance for 2022, replace annual reserve depletion to further extend its mine life, and maintain its exemplary safety record, with no lost time injuries or major environmental events during the past quarter.
It continues to invest in sustainable economic community projects, establishing a motel, a farm for Kenieba women and three water supply systems during the quarter. The Loulo agricultural college, designed as the foundation of a sustainable regional agribusiness, has already trained 21 women and 143 men and created 30 farms.
Since the opening of the mine, Loulo-Gounkoto has built 20 schools in its neighboring villages, taking student enrollment from 500 to more than 5,000. Seventy-eight of them are currently benefiting from the complex’s bursary program and Loulo-Gounkoto is also supporting teachers’ salaries.
“First as Randgold and now as Barrick, we’ve been operating in Mali for 25 years and we plan to be here for at least as long again. The strong and mutually rewarding partnerships we have forged with the government, local business partners and our host communities are the key to our success and an example to Africa’s other mining countries,” Bristow says.
*REKO DIQ ALLIANCE BETWEEN PAKISTAN AND BARRICK SET TO CREATE LONG-TERM VALUE*
*Pakistan’s finance minister Miftah Ismail and Barrick president and chief executive Mark Bristow said after their meeting in Islamabad that they shared a clear vision of the national strategic importance of the Reko Diq copper-gold project and were committed to developing it as a world-class mine that would create value for the country and its people through multiple generations.*
Reko Diq is one of the world’s largest undeveloped copper-gold deposits. An agreement in principle reached between the government of Pakistan, the provincial government of Balochistan and Barrick earlier this year provides for the reconstitution and restart of the project, which has been on hold since 2011. It will be operated by Barrick and owned 50% by Barrick, 25% by the Balochistan Provincial Government and 25% by Pakistani state-owned enterprises.
The definitive agreements underlying the framework agreement between Barrick and the governments of Pakistan and Balochistan are being finalized. Once this has been completed and the necessary legalization steps have been taken, Barrick will update the original feasibility study, a process expected to take two years. Construction of the first phase will follow that, with first production of copper and gold expected in 2027/2028.
“During the negotiations the federal government and Barrick confirmed that Balochistan and its people should receive their fair share of the benefits as part of the Pakistan ownership group,” Bristow said.
“At Barrick, we know that our long-term success depends on sharing the benefits we create equitably with our host governments and communities. At Reko Diq, Balochistan’s shareholding will be fully funded by the project and the Federal Government, allowing the province to reap the dividends, royalties and other benefits of its 25% ownership without having to contribute financially to the project’s construction or operation. It’s equally important that Balochistan and its people should see these benefits from day one. Even before construction starts, when the legalization process has been completed we will implement a range of social development programs, supported by an upfront commitment to the improvement of healthcare, education, food security and the provision of potable water in a region where the groundwater has a high saline content.”
Finance minister Ismail said the development of Reko Diq represented the largest direct foreign investment in Balochistan and one of the largest in Pakistan.
“Like Barrick, we believe that the future of mining lies in mutually beneficial partnerships between host countries and world-class mining companies. The Reko Diq agreement exemplifies this philosophy and also signals to the international community that Pakistan is open for business,” he said.
Subject to the updated feasibility study, Reko Diq is envisaged as a conventional open pit and milling operation, producing a high-quality copper-gold concentrate. It will be constructed in two phases, starting with a plant that will be able to process approximately 40 million tonnes of ore per annum which could be doubled in five years following first production from phase one. With its 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. During peak construction the project is expected to employ 7,500 people and once in production it will create 4,000 long-term jobs. Barrick’s policy of prioritizing local employment and suppliers will have a positive impact on the downstream economy.
*KIBALI DRIVES SUSTAINABLE VALUE CREATION*
*The Kibali gold mine’s investment in the Democratic Republic of Congo now exceeds $4 billion and it has created a thriving regional economy in a remote part of the country through partnering with and mentoring local entrepreneurs, uplifting host communities and upgrading essential infrastructure.*
Kibali is not only Africa’s largest gold mine, it is also a global leader in automation, sustainability initiatives, clean energy and skills training.
“Thanks to Barrick’s policy of local employment and advancement, 94% of Kibali’s workforce, including its management, are Congolese nationals. It is now also driving the employment of women in the traditionally male-dominated mining industry through targeted recruitment campaigns and development programs designed to equip them for rewarding careers at all levels of the organization,” says Barrick president and chief executive Mark Bristow.
Kibali is on track to meet its full-year production guidance and has again posted an injury-free quarter. Its three world-class hydropower stations are mitigating the impact of higher fuel prices and significantly reducing the mine’s carbon footprint. Bristow said the stations were built well before climate change became a priority issue, demonstrating Barrick’s long-standing commitment to sustainability in all its activities.
Kibali’s gold reserves have grown net of depletion for three successive years, and ongoing conversion drilling is expected to continue this trend, despite producing in excess of 5.7Moz of gold to date.^15 Ongoing exploration is delivering new growth opportunities with the potential to grow the mineral resource base beyond the original feasibility study.
Local sustainability projects include the construction of a world-class aquaponics farm and the erection of a vocational and technical training center to promote capacity building in the community. Implementation of the cahier des charges mechanism has started, following its approval by the government. This will add to the current commitment of investing 0.3% of revenue in community projects identified in consultation with the mine’s community development committees.
Kibali also continues to invest in the future of Africa’s biodiversity through its support for the Garamba National Park which has seen a substantial increase in the giraffe population and the near-elimination of elephant poaching. It is also sponsoring a project for the re-introduction of white rhino into the park, critical in the long-term campaign to protect this endangered species.
“Kibali’s journey has created enormous value for all its stakeholders and it’s a standout example of what mutually beneficial partnerships can achieve. Its great gold endowment means that it has a long future ahead as an engine for economic growth and community development,” Bristow says.
*BARRICK EXTENDS REVOLVING CREDIT FACILITY AND ESTABLISHES SUSTAINABILITY-LINKED METRICS*
*Barrick has completed an amendment and restatement of the company’s undrawn $3.0 billion revolving credit facility, including an extension of the termination date by one year to May 2027, replacement of LIBOR with SOFR as the floating rate mechanism related to the interest rate for any US dollar funds drawn down, and the establishment of sustainability-linked metrics.*
The sustainability-linked metrics incorporated into the revolving credit facility are made up of annual environmental and social performance targets directly influenced by Barrick’s actions, rather than based on external ratings. The performance targets include Scope 1 and Scope 2 greenhouse gas emissions intensity, water use efficiency (reuse and recycling rates), and Total Recordable Injury Frequency Rate (TRIFR).^16 Barrick may incur positive or negative pricing adjustments on drawn credit spreads and standby fees based on its sustainability performance versus the targets that have been set.
Senior executive vice-president and chief financial officer Graham Shuttleworth said, “The extension of the termination date of our undrawn credit facility, combined with our strong balance sheet, highlights the current strength of Barrick’s liquidity, while the establishment of sustainability-linked metrics, along with Barrick’s recently released 2021 Sustainability Report, continues to show Barrick’s commitment to ESG.”
Barrick’s long-term credit is currently rated BBB+ and Baa1 by S&P Global Ratings and Moody’s Investors Service, respectively.
*Appendix 1*
*2022 Operating and Capital Expenditure Guidance*
*GOLD PRODUCTION AND COSTS* 2022 forecast
attributable production
(000s oz) 2022 forecast cost
of sales^8 ($/oz) 2022 forecast total
cash costs^9 ($/oz) 2022 forecast all-in
sustaining costs^9
($/oz)
Carlin (61.5%)^17 950 - 1,030 900 - 980 730 - 790 1,020 - 1,100
Cortez (61.5%)^18 480 - 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%)^19 — — — —
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*^*20,21,22* 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
($/lb)
Lumwana 250 - 280 2.20 - 2.50 1.60 - 1.80 3.10 - 3.40
Zaldívar (50%) 100 - 120 2.70 - 3.00 2.00 - 2.20 2.50 - 2.80
Jabal Sayid (50%) 70 - 80 1.40 - 1.70 1.30 - 1.50 1.30 - 1.60
*Total Attributable to Barrick*^*21* 420 - 470 2.20 - 2.50 1.70 - 1.90 2.70 - 3.00
*ATTRIBUTABLE CAPITAL EXPENDITURES* ($ 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^23
(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 +/- $0.01/lb
*Appendix 2*
*Production and Cost Summary - Gold*
For the three months ended *6/30/22* 3/31/22 % Change 6/30/21 % Change
*Nevada Gold Mines LLC (61.5%)^a*
Gold produced (000s oz attributable basis) * 462 * 459 1% 452 2%
Gold produced (000s oz 100% basis) * 751 * 747 1% 735 2%
Cost of sales ($/oz) * 1,171 * 1,169 0% 1,111 5%
Total cash costs ($/oz)^b * 856 * 820 4% 717 19%
All-in sustaining costs ($/oz)^b * 1,238 * 1,118 11% 1,014 22%
*Carlin (61.5%)^c*
Gold produced (000s oz attributable basis) * 243 * 229 6% 190 28%
Gold produced (000s oz 100% basis) * 394 * 373 6% 309 28%
Cost of sales ($/oz) * 1,042 * 1,015 3% 1,043 0%
Total cash costs ($/oz)^b * 862 * 829 4% 852 1%
All-in sustaining costs ($/oz)^b * 1,192 * 1,139 5% 1,310 (9)%
*Cortez (61.5%)^d*
Gold produced (000s oz attributable basis) * 97 * 115 (16)% 110 (12)%
Gold produced (000s oz 100% basis) * 158 * 187 (16)% 178 (12)%
Cost of sales ($/oz) * 1,168 * 1,113 5% 1,167 0%
Total cash costs ($/oz)^b * 850 * 784 8% 793 7%
All-in sustaining costs ($/oz)^b * 1,538 * 1,150 34% 1,029 49%
*Turquoise Ridge (61.5%)*
Gold produced (000s oz attributable basis) * 75 * 67 12% 78 (4)%
Gold produced (000s oz 100% basis) * 122 * 109 12% 128 (4)%
Cost of sales ($/oz) * 1,289 * 1,436 (10)% 1,131 14%
Total cash costs ($/oz)^b * 928 * 1,030 (10)% 752 23%
All-in sustaining costs ($/oz)^b * 1,195 * 1,281 (7)% 904 32%
*Phoenix (61.5%)^c*
Gold produced (000s oz attributable basis) * 26 * 23 13% 28 (7)%
Gold produced (000s oz 100% basis) * 43 * 37 13 % 45 (7)%
Cost of sales ($/oz) * 2,114 * 2,253 (6)% 1,864 13%
Total cash costs ($/oz)^b * 895 * 835 7% 279 221%
All-in sustaining costs ($/oz)^b * 1,152 * 1,027 12% 401 187%
*Long Canyon (61.5%)*
Gold produced (000s oz attributable basis) * 21 * 25 (16)% 46 (54)%
Gold produced (000s oz 100% basis) * 34 * 41 (16)% 75 (54)%
Cost of sales ($/oz) * 1,280 * 1,093 17% 691 85%
Total cash costs ($/oz)^b * 450 * 342 32% 168 168%
All-in sustaining costs ($/oz)^b * 459 * 366 25% 191 140%
*Pueblo Viejo (60%)*
Gold produced (000s oz attributable basis) * 105 * 104 1% 117 (10)%
Gold produced (000s oz 100% basis) * 175 * 174 1% 195 (10)%
Cost of sales ($/oz) * 1,154 * 1,077 7% 904 28%
Total cash costs ($/oz)^b * 724 * 682 6% 533 36%
All-in sustaining costs ($/oz)^b * 1,024 * 948 8% 723 42%
*Loulo-Gounkoto (80%)*
Gold produced (000s oz attributable basis) * 140 * 138 1% 143 (2)%
Gold produced (000s oz 100% basis) * 175 * 172 1% 179 (2)%
Cost of sales ($/oz) * 1,093 * 1,088 0% 993 10%
Total cash costs ($/oz)^b * 730 * 721 1% 610 20%
All-in sustaining costs ($/oz)^b * 1,013 * 982 3% 1,073 (6)%
*Kibali (45%)*
Gold produced (000s oz attributable basis) * 81 * 76 7% 91 (11)%
Gold produced (000s oz 100% basis) * 180 * 168 7% 202 (11)%
Cost of sales ($/oz) * 1,164 * 1,137 2% 1,038 12%
Total cash costs ($/oz)^b * 738 * 744 (1)% 645 14%
All-in sustaining costs ($/oz)^b * 946 * 996 (5)% 894 6%
*Veladero (50%)*
Gold produced (000s oz attributable basis) * 58 * 46 26% 31 87%
Gold produced (000s oz 100% basis) *116* 92 26% 62 87%
Cost of sales ($/oz) * 1,369 * 1,348 2% 1,231 11%
Total cash costs ($/oz)^b * 861 * 847 2% 774 11%
All-in sustaining costs ($/oz)^b * 1,461 * 1,588 (8)% 1,698 (14)%
*Porgera (47.5%)^e*
Gold produced (000s oz attributable basis) * — * — —% — —%
Gold produced (000s oz 100% basis) * — * — —% — —%
Cost of sales ($/oz) * — * — —% — —%
Total cash costs ($/oz)^b * — * — —% — —%
All-in sustaining costs ($/oz)^b * — * — —% — —%
*Tongon (89.7%)*
Gold produced (000s oz attributable basis) *41* 35 17% 48 (15)%
Gold produced (000s oz 100% basis) *46* 39 17% 53 (15)%
Cost of sales ($/oz) * 2,025 * 2,036 (1)% 1,446 40%
Total cash costs ($/oz)^b * 1,558 * 1,667 (7)% 1,045 49%
All-in sustaining costs ($/oz)^b * 1,655 * 1,803 (8)% 1,162 42%
*Hemlo*
Gold produced (000s oz) *36* 31 16% 42 (14)%
Cost of sales ($/oz) * 1,698 * 1,727 (2)% 1,603 6%
Total cash costs ($/oz)^b * 1,489 * 1,503 (1)% 1,314 13%
All-in sustaining costs ($/oz)^b * 1,804 * 1,982 (9)% 1,937 (7)%
*North Mara (84%)*
Gold produced (000s oz attributable basis) *66* 56 18% 63 5%
Gold produced (000s oz 100% basis) *79* 66 18% 75 5%
Cost of sales ($/oz) * 1,060 * 852 24% 975 9%
Total cash costs ($/oz)^b * 756 * 709 7% 816 (7)%
All-in sustaining costs ($/oz)^b * 957 * 874 9% 952 1%
*Buzwagi (84%)^f*
Gold produced (000s oz attributable basis) 19
Gold produced (000s oz 100% basis) 22
Cost of sales ($/oz) 1,315
Total cash costs ($/oz)^b 1,244
All-in sustaining costs ($/oz)^b 1,242
*Bulyanhulu (84%)*
Gold produced (000s oz attributable basis) *54* 45 20% 35 54%
Gold produced (000s oz 100% basis) *65* 53 20% 42 54%
Cost of sales ($/oz) * 1,163 * 1,216 (4)% 1,164 0%
Total cash costs ($/oz)^b *836* 847 (1)% 776 8%
All-in sustaining costs ($/oz)^b * 1,094 * 984 11% 916 19%
*Total Attributable to Barrick^g*
Gold produced (000s oz) * 1,043 * 990 5% 1,041 0%
Cost of sales ($/oz)^h * 1,216 * 1,190 2% 1,107 10%
Total cash costs ($/oz)^b * 855 * 832 3% 729 17%
All-in sustaining costs ($/oz)^b * 1,212 * 1,164 4% 1,087 11%
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, we have ceased to include production or non-GAAP cost metrics for Buzwagi from October 1, 2021 onwards.
7. Excludes Pierina, 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 *6/30/22* 3/31/22 % Change 6/30/21 % Change
*Lumwana*
Copper production (Mlbs) *75* 57 32% 56 34%
Cost of sales ($/lb) *2.01* 2.20 (9)% 2.36 (15)%
C1 cash costs ($/lb)^a *1.68* 1.86 (10)% 1.72 (2)%
All-in sustaining costs ($/lb)^a *3.28* 3.16 4% 2.92 12%
*Zald**í**var (50%)*
Copper production (Mlbs attributable basis) *25* 25 0% 22 14%
Copper production (Mlbs 100% basis) *50* 51 0% 44 14%
Cost of sales ($/lb) *2.88* 2.85 1% 3.56 (19)%
C1 cash costs ($/lb)^a *2.17* 2.15 1% 2.68 (19)%
All-in sustaining costs ($/lb)^a *2.65* 2.64 0% 3.15 (16)%
*Jabal Sayid (50%)*
Copper production (Mlbs attributable basis) *20* 19 5% 18 11%
Copper production (Mlbs 100% basis) *40* 38 5% 36 11%
Cost of sales ($/lb) *1.45* 1.30 12% 1.47 (1)%
C1 cash costs ($/lb)^a *1.09* 1.10 (1)% 1.27 (14)%
All-in sustaining costs ($/lb)^a *1.19* 1.17 2% 1.39 (14)%
*Total Attributable to Barrick*
Copper production (Mlbs attributable basis) *120* 101 19% 96 25%
Cost of sales ($/lb)^b *2.11* 2.21 (5)% 2.43 (13)%
C1 cash costs ($/lb)^a *1.70* 1.81 (6)% 1.83 (7)%
All-in sustaining costs ($/lb)^a *2.87* 2.85 1% 2.74 5%
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 For the six months ended *6/30/22* 3/31/22 % Change 6/30/21 % Change *6/30/22* 6/30/21 % Change
*Financial Results* ($ millions)
Revenues *2,859* 2,853 % 2,893 (1)% *5,712* 5,849 (2)%
Cost of sales *1,850* 1,739 6 % 1,704 9 % *3,589* 3,416 5 %
Net earnings^a *488* 438 11 % 411 19 % *926* 949 (2)%
Adjusted net earnings^b *419* 463 (10)% 513 (18)% *882* 1,020 (14)%
Adjusted EBITDA^b *1,527* 1,645 (7)% 1,719 (11)% *3,172* 3,519 (10)%
Adjusted EBITDA margin^c *53* *%* 58 % (9)% 59 % (10)% *56* *%* 60 % (7)%
Minesite sustaining capital expenditures^b,d *523* 420 25 % 452 16 % *943* 857 10 %
Project capital expenditures^b,d *226* 186 22 % 203 11 % *412* 334 23 %
Total consolidated capital expenditures^d,e *755* 611 24 % 658 15 % *1,366* 1,197 14 %
Net cash provided by operating activities *924* 1,004 (8)% 639 45 % *1,928* 1,941 (1)%
Net cash provided by operating activities margin^f *32* *%* 35 % (9)% 22 % 45 % *34* *%* 33 % 3 %
Free cash flow^b *169* 393 (57)% (19 ) 989 % *562* 744 (24)%
Net earnings per share (basic and diluted) *0.27* 0.25 8 % 0.23 17 % *0.52* 0.53 (2)%
Adjusted net earnings (basic)^b per share *0.24* 0.26 (8)% 0.29 (17)% *0.50* 0.57 (12)%
Weighted average diluted common shares (millions of shares) *1,777* 1,779 % 1,779 % *1,778* 1,779 %
*Operating Results*
Gold production (thousands of ounces)^g *1,043* 990 5 % 1,041 % *2,033* 2,142 (5)%
Gold sold (thousands of ounces)^g *1,040* 993 5 % 1,070 (3)% *2,033* 2,163 (6)%
Market gold price ($/oz) *1,871* 1,877 % 1,816 3 % *1,874* 1,805 4 %
Realized gold price^b,g ($/oz) *1,861* 1,876 (1)% 1,820 2 % *1,868* 1,798 4 %
Gold cost of sales (Barrick’s share)^g,h ($/oz) *1,216* 1,190 2 % 1,107 10 % *1,203* 1,090 10 %
Gold total cash costs^b,g ($/oz) *855* 832 3 % 729 17 % *844* 723 17 %
Gold all-in sustaining costs^b,g ($/oz) *1,212* 1,164 4 % 1,087 11 % *1,188* 1,052 13 %
Copper production (millions of pounds)^g *120* 101 19 % 96 25 % *221* 189 17 %
Copper sold (millions of pounds)^g *113* 113 % 96 18 % *226* 209 8 %
Market copper price ($/lb) *4.32* 4.53 (5)% 4.40 (2)% *4.43* 4.12 8 %
Realized copper price^b,g ($/lb) *3.72* 4.68 (21)% 4.57 (19)% *4.20* 4.32 (3)%
Copper cost of sales (Barrick’s share)^g,i ($/lb) *2.11* 2.21 (5)% 2.43 (13)% *2.16* 2.26 (4)%
Copper C1 cash costs^b,g ($/lb) *1.70* 1.81 (6)% 1.83 (7)% *1.75* 1.71 2 %
Copper all-in sustaining costs^b,g ($/lb) *2.87* 2.85 1 % 2.74 5 % *2.86* 2.48 15 % *As at 6/30/22* As at 3/31/22 % Change As at 6/30/21 % Change
*Financial Position* ($ millions)
Debt (current and long-term) *5,144* 5,144 % 5,152 %
Cash and equivalents *5,780* 5,887 (2)% 5,138 12 %
Debt, net of cash *(636* *)* (743 ) (14)% 14 (4,643)%
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 $6 million and $11 million, respectively, for the three and six month periods ended June 30, 2022 (March 31, 2022: $5 million and June 30, 2021: $3 million and $6 million, respectively).
6. Represents net cash provided by operating activities divided by revenue.
7. On an attributable basis.
8. Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using Barrick's ownership share).
9. Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick's ownership share).
*Consolidated Statements of Income*
Barrick Gold Corporation
(in millions of United States dollars, except per share data) (Unaudited) Three months ended June 30, Six months ended June 30, *2022* 2021 *2022* 2021
*Revenue (notes 5 and 6)* *$* *2,859* $ 2,893 *$* *5,712* $ 5,849
*Costs and expenses (income)*
Cost of sales (notes 5 and 7) *1,850* 1,704 *3,589* 3,416
General and administrative expenses *30* 47 *84* 85
Exploration, evaluation and project expenses *100* 77 *167* 138
Impairment (reversals) charges (notes 9b and 13) *3* 2 *5* (87 )
Loss on currency translation *6* 7 *9* 11
Closed mine rehabilitation *(128* *)* 6 *(125* *)* 29
Income from equity investees (note 12) *(89* *)* (104 ) *(188* *)* (207 )
Other expense (income) (note 9a) *2* 26 *(9* *)* 45
*Income before finance costs and income taxes* *$* *1,085* $ 1,128 *$* *2,180* $ 2,419
Finance costs, net *(89* *)* (91 ) *(177* *)* (178 )
*Income before income taxes* *$* *996* $ 1,037 *$* *2,003* $ 2,241
Income tax expense (note 10) *(279* *)* (343 ) *(580* *)* (717 )
*Net income* *$* *717* $ 694 *$* *1,423* $ 1,524
*Attributable to:*
Equity holders of Barrick Gold Corporation *$* *488* $ 411 *$* *926* $ 949
Non-controlling interests (note 16) *$* *229* $ 283 *$* *497* $ 575
*Earnings per share data attributable to the equity holders of Barrick Gold Corporation (note 8)*
Net income
Basic *$* *0.27* $ 0.23 *$* *0.52* $ 0.53
Diluted *$* *0.27* $ 0.23 *$* *0.52* $ 0.53
The notes to these unaudited condensed interim financial statements, which are contained in the Second 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 June 30, Six months ended June 30, *2022* 2021 *2022* 2021
Net income *$* *717* $ 694 *$* *1,423* $ 1,524
*Other comprehensive income (loss), net of taxes*
*Items that may be reclassified subsequently to profit or loss:*
Realized losses on derivatives designated as cash flow hedges, net of tax $nil, $nil, $nil and $nil *—* 3 *—* 3
Currency translation adjustments, net of tax $nil, $nil, $nil and $nil *1* — *1* —
*Items that will not be reclassified to profit or loss:*
Actuarial loss on post employment benefit obligations, net of tax $nil, $nil, $nil and $3 *(1* *)* — *(1* *)* —
Net change on equity investments, net of tax $2, ($3), ($6) and $5 *(26* *)* 10 *32* (37 )
*Total other comprehensive (loss) income* *(26* *)* 13 *32* (34 )
*Total comprehensive income* *$* *691* $ 707 *$* *1,455* $ 1,490
*Attributable to:*
Equity holders of Barrick Gold Corporation *$* *462* $ 424 *$* *958* $ 915
Non-controlling interests *$* *229* $ 283 *$* *497* $ 575
The notes to these unaudited condensed interim financial statements, which are contained in the Second 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 June 30, Six months ended June 30, *2022* 2021 *2022* 2021
*OPERATING ACTIVITIES *
Net income *$* *717* $ 694 *$* *1,423* $ 1,524
Adjustments for the following items:
Depreciation *476* 500 *936* 1,007
Finance costs, net *101* 100 *199* 194
Impairment (reversals) charges (notes 9b and 13) *3* 2 *5* (87 )
Income tax expense (note 10) *279* 343 *580* 717
Income from equity investees (note 12) *(89* *)* (104 ) *(188* *)* (207 )
Gain on sale of non-current assets *(20* *)* (7 ) *(22* *)* (10 )
Loss on currency translation *6* 7 *9* 11
Change in working capital (note 11) *(34* *)* (197 ) *(165* *)* (249 )
Other operating activities (note 11) *(126* *)* (76 ) *(203* *)* (116 )
Operating cash flows before interest and income taxes *1,313* 1,262 *2,574* 2,784
Interest paid *(129* *)* (131 ) *(152* *)* (153 )
Income taxes paid^1 *(260* *)* (492 ) *(494* *)* (690 )
*Net cash provided by operating activities* *924* 639 *1,928* 1,941
*INVESTING ACTIVITIES*
Property, plant and equipment
Capital expenditures (note 5) *(755* *)* (658 ) *(1,366* *)* (1,197 )
Sales proceeds *22* 1 *23* 5
Investment sales *122* — *382* —
Divestitures (note 4) *—* 19 *—* 19
Dividends received from equity method investments (note 12) *310* 35 *669* 161
Shareholder loan repayments from equity method investments (note 12) *—* — *—* 1
*Net cash used in investing activities* *(301* *)* (603 ) *(292* *)* (1,011 )
*FINANCING ACTIVITIES*
Lease repayments *(4* *)* (4 ) *(10* *)* (10 )
Debt repayments *—* — *—* (7 )
Dividends *(353* *)* (159 ) *(531* *)* (317 )
Return of capital (note 15) *—* (250 ) *—* (250 )
Share buyback program (note 15) *(173* *)* — *(173* *)* —
Funding from non-controlling interests (note 16) *—* 6 *—* 12
Disbursements to non-controlling interests (note 16) *(232* *)* (206 ) *(499* *)* (471 )
Pueblo Viejo JV partner shareholder loan *35* 43 *80* 64
*Net cash used in financing activities* *(727* *)* (570 ) *(1,133* *)* (979 )
*Effect of exchange rate changes on cash and equivalents* *(3* *)* — *(3* *)* (1 )
Net increase (decrease) in cash and equivalents *(107* *)* (534 ) *500* (50 )
*Cash and equivalents at the beginning of period* *5,887* 5,672 *5,280* 5,188
*Cash and equivalents at the end of period* *$* *5,780* $ 5,138 *$* *5,780* $ 5,138
1. Income taxes paid excludes $10 million (2021: $57 million) for the three months ended June 30, 2022 and $36 million (2021: $93 million) for the six months ended June 30, 2022 of income taxes payable that were settled against offsetting VAT receivables.The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
*Consolidated Balance Sheets*
Barrick Gold Corporation *As at June 30,**
* As at December 31,
(in millions of United States dollars) (Unaudited) *2022* 2021
*ASSETS*
Current assets
Cash and equivalents *$* *5,780* $ 5,280
Accounts receivable *577* 623
Inventories *1,699* 1,734
Other current assets *754* 612
Total current assets *$* *8,810* $ 8,249
Non-current assets
Equity in investees (note 12) *4,113* 4,594
Property, plant and equipment *25,202* 24,954
Goodwill *4,769* 4,769
Intangible assets *149* 150
Deferred income tax assets *6* 29
Non-current portion of inventory *2,694* 2,636
Other assets *1,099* 1,509
*Total assets* *$* *46,842* $ 46,890
*LIABILITIES AND EQUITY*
Current liabilities
Accounts payable *$* *1,537* $ 1,448
Debt *13* 15
Current income tax liabilities *303* 285
Other current liabilities *377* 338
Total current liabilities *$* *2,230* $ 2,086
Non-current liabilities
Debt *5,131* 5,135
Provisions *2,321* 2,768
Deferred income tax liabilities *3,368* 3,293
Other liabilities *1,258* 1,301
*Total liabilities* *$* *14,308* $ 14,583
Equity
Capital stock (note 15) *$* *28,363* $ 28,497
Deficit *(6,173* *)* (6,566 )
Accumulated other comprehensive income (loss) *9* (23 )
Other *1,912* 1,949
*Total equity attributable to Barrick Gold Corporation shareholders* *$* *24,111* $ 23,857
Non-controlling interests (note 16) *8,423* 8,450
*Total equity* *$* *32,534* $ 32,307
Contingencies and commitments (notes 5 and 17)
*Total liabilities and equity* *$* *46,842* $ 46,890
The notes to these unaudited condensed interim financial statements, which are contained in the Second 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* *$* *32,307*
Net income — — 926 — — 926 497 1,423
Total other comprehensive income — — — 32 — 32 — 32
Total comprehensive income — — 926 32 — 958 497 1,455
Transactions with owners
Dividends — — (531 ) — — (531 ) — (531 )
Disbursements to non-controlling interests (note 16) — — — — — — (524 ) (524 )
Dividend reinvestment plan (note 15) 105 2 (2 ) — — — — —
Share buyback program (note 15) (8,500 ) (136 ) — — (37 ) (173 ) — (173 )
Total transactions with owners (8,395 ) (134 ) (533 ) — (37 ) (704 ) (524 ) (1,228 )
*At June 30, 2022* *1,770,936* *$* *28,363* *$* *(6,173* *)* *$* *9* *$* *1,912* *$* *24,111* *$* *8,423* *$* *32,534*
*At January 1, 2021* *1,778,190* *$* *29,236* *$* *(7,949* *)* *$* *14* *$* *2,040* *$* *23,341* *$* *8,369* *$* *31,710*
Net income — — 949 — — 949 575 1,524
Total other comprehensive loss — — — (34 ) — (34 ) — (34 )
Total comprehensive income (loss) — — 949 (34 ) — 915 575 1,490
Transactions with owners
Dividends — — (317 ) — — (317 ) — (317 )
Return of capital (note 15) — (250 ) — — — (250 ) — (250 )
Issued on exercise of stock options 50 — — — — — — —
Funding from non-controlling interests — — — — — — 12 12
Disbursements to non-controlling interests — — — — — — (471 ) (471 )
Dividend reinvestment plan 104 3 (3 ) — — — — —
Share-based payments 898 6 — — (6 ) — — —
Total transactions with owners 1,052 (241 ) (320 ) — (6 ) (567 ) (459 ) (1,026 )
*At June 30, 2021* *1,779,242* *$* *28,995* *$* *(7,320* *)* *$* *(20* *)* *$* *2,034* *$* *23,689* *$* *8,485* *$* *32,174*
1. Includes cumulative translation losses at June 30, 2022: $93 million (December 31, 2021: $94 million; June 30, 2021: $95 million).
2. Includes additional paid-in capital as at June 30, 2022: $1,874 million (December 31, 2021: $1,911 million; June 30, 2021: $1,996 million).
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
*Technical Information*
The scientific and technical information contained in this press release has been reviewed and approved by Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral Resources Manager: Africa & Middle East, a “Qualified Person” as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
*Endnotes*
*Endnote 1*
“Free cash flow” is a non-GAAP financial performance measure that deducts capital expenditures from net cash provided by operating activities. Management believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Free cash flow is intended to provide additional information only and does not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently. Further details on this non-GAAP financial performance measure are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
*Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow*
($ millions) For the three months ended For the six months ended *6/30/22* 3/31/22 6/30/21 *6/30/22* 6/30/21
Net cash provided by operating activities *924* 1,004 639 *1,928* 1,941
Capital expenditures *(755* *)* (611 ) (658 ) *(1,366* *)* (1,197 )
Free cash flow *169* 393 (19 ) *562* 744
*Endnote 2*
“Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial performance measures. Adjusted net earnings excludes the following from net earnings: certain impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and investments; gains (losses) and other one time costs relating to acquisitions or dispositions; foreign currency translation gains (losses); significant tax adjustments not related to current period earnings; other items that are not indicative of the underlying operating performance of our core mining business; and the tax effect and non-controlling interest of these items. Management uses this measure internally to evaluate our underlying operating performance for the reporting periods presented and to assist with the planning and forecasting of future operating results. Management believes that adjusted net earnings is a useful measure of our performance because these adjusting items do not reflect the underlying operating performance of our core mining business and are not necessarily indicative of future operating results. Adjusted net earnings and adjusted net earnings per share are intended to provide additi