Disciplined Strategy Execution Supports Sustained Value Creation at Barrick
*Third Quarter 2022 Results
*All amounts expressed in US dollars
LONDON, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) remains on track to achieve its 2022 production guidance despite some short-term operational challenges and rising input costs, president and chief executive Mark Bristow said today.
Presenting the company’s third-quarter results, Bristow said a steady performance had paved the way for a stronger Q4, driven by access to higher grades at Nevada Gold Mines (NGM). Its exploration drive continues to build momentum and Barrick is set once again to grow its reserves net of depletion this year.
Operating cash flow for the quarter was $758 million and was supplemented by the sale of non-core royalty assets. The robust balance sheet supported a $0.10 per share base dividend plus a $0.05 per share performance dividend for a total of $0.15 per share for the quarter. Under the $1 billion share buyback program, $322 million^1 of shares have been repurchased to date, or approximately 1% of Barrick’s issued and outstanding shares at the time the program was announced.
“Barrick’s core strategy is one of long-term value creation and our focus remains firmly on this goal. We continue to maintain a strong balance sheet and to develop our wealth of organic growth projects. We also keep a sharp lookout for M&A opportunities, but those that could pass our strict investment filters are few and far between,” Bristow said.
“Sustainability is the cornerstone of our business, as it has been for the past 20 years. We have adopted a holistic and integrated approach to this critical issue, and are not only prioritizing the environment portion of ESG metrics. This is more attuned to the ethical and developmental needs of many of our host countries, and is already delivering results,” Bristow said.
Highlights of the quarter include the completion of the public comment phase of NGM’s Goldrush project and continuing progress with the Pueblo Viejo expansion project, designed to extend the life of the mine beyond 2040 at an annual production rate in excess of 800,000 ounces of gold (100% basis).^14 The definitive agreements on the Reko Diq copper-gold project in Pakistan have been finalized and the process now moves onto its legalization and closing stage, with potential production from 2027/2028.
Barrick continues to build its copper portfolio with strong performances from Jabal Sayid in Saudi Arabia and Lumwana in Zambia, where ongoing exploration is pointing to the potential for a superpit which could extend the mine’s life to 2060.
At NGM, the North Leeville target has reported a maiden inferred resource of 700,000 ounces (100% basis as of December 31, 2021)^18 and is set for further growth. Bristow says Barrick is looking at other opportunities in Nevada and elsewhere in North America. In Africa, key structures in the Loulo district are demonstrating the potential for further discoveries and in the Democratic Republic of Congo, Kibali’s prolific KCD structure continues to deliver growth.
“Barrick is successfully executing its strategy to create the world’s most valued gold and copper mining company through the performance of its peerless asset portfolio and a pipeline of high-quality organic growth prospects. This is evident in its industry-leading and sustainable shareholder returns, delivered in a disciplined dividend framework,” Bristow said.
*Key Performance Indicators*
*Financial and Operating Highlights*
*Financial Results* *Q3 2022* *Q2 2022* *Q3 2021*
Realized gold price^5,6 ($ per ounce) *1,722* 1,861 1,771
Net earnings ($ millions) *241* 488 347
Adjusted net earnings^3 ($ millions) *224* 419 419
Net cash provided by operating activities ($ millions) *758* 924 1,050
Free cash flow^7 ($ millions) *(34* 169 481
Net earnings per share ($) *0.14* 0.27 0.20
Adjusted net earnings per share^3 ($) *0.13* 0.24 0.24
Attributable capital expenditures^8,9 ($ millions) *609* 587 456
*Operating Results* *Q3 2022* *Q2 2022* *Q3 2021*
*Gold*
Production^6 (000s of ounces) *988* 1,043 1,092
Cost of sales (Barrick's share)^6,10 ($ per ounce) *1,226* 1,216 1,122
Total cash costs^6,11 ($ per ounce) *891* 855 739
All-in sustaining costs^6,11 ($ per ounce) *1,269* 1,212 1,034
*Copper*
Production^6 (millions of pounds) *123* 120 100
Cost of sales (Barrick's share)^6,10 ($ per pound) *2.30* 2.11 2.57
C1 cash costs^6,12 ($ per pound) *1.86* 1.70 1.85
All-in sustaining costs^6,12 ($ per pound) *3.13* 2.87 2.60
*Best Assets*
· Steady Q3 performance with grade uplift in Q4 to drive delivery of 2022 gold production targets
· Strong production performance at Lumwana and Jabal Sayid has copper trending at midpoint of guidance
· Another milestone reached at Goldrush with conclusion of draft EIS public comment period
· New exploration management team builds momentum with strong results from a range of exciting targets across portfolio
· On track to grow reserves net of depletion by year end*Leader in Sustainability*
· Renewed focus on Visible Felt Leadership shows improvement in safety at NGM
· All NGM sites retained ISO 14001 and ISO 45001 accreditation during the quarter
· Zero Class 1 or high significance environmental incidents^13
· Progress against Global Industry Standard on Tailings Management and against self-assessment plans completed for all ‘very high’ and ‘extreme’ consequence classifications
· Pueblo Viejo new tailings storage facility Environmental and Social Impact Assessment (ESIA) completed to the Dominican Government’s Terms of Reference*Delivering Value*
· Operating cash flow of $758 million plus further value capture from sale of royalty portfolio
· Net earnings per share of $0.14 and adjusted net earnings per share^3 of $0.13 for the quarter
· Net cash of $145 million^2 results in a $0.15 per share dividend for Q3 2022, inclusive of $0.05 per share performance dividend
· A further 9 million shares repurchased under buyback program (~$141 million) in Q3 2022 bringing the total year-to-date to $322 million^4
*Q3 2022 Results Presentation*
*Webinar and Conference Call*
President and CEO Mark Bristow will host a live presentation of 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 Q3 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.
*Q3 DIVIDEND OF $0.15 PER SHARE DECLARED, LEADING TO RECORD ANNUAL RETURNS IN 2022*
*Barrick today announced the declaration of a dividend of $0.15 per share for the third quarter of 2022.*
The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of the year. The Q3 2022 dividend will be paid on December 15, 2022 to shareholders of record at the close of business on November 30, 2022.
In addition to the enhanced dividends declared so far in 2022, Barrick has continued to repurchase shares under the share buyback program that was announced in February of this year. As of the end of Q3, Barrick has repurchased 18 million shares^1 under the program, or approximately 1% of Barrick’s issued and outstanding shares at the time the program was announced, for net cash of $322 million^1, including $141 million paid during Q3 2022.
Consequently, through the end of Q3 2022, $1.2 billion of cash has been used for dividends and share buybacks during the year. With the payment of the dividend announced today to be made in Q4 2022, the return to shareholders in 2022 in the form of dividends and share buybacks is expected to exceed the record $1.4 billion of distributions made in 2021.
“The combination of the performance dividend policy and share buyback program that were introduced earlier this year has allowed us to provide significant benefits to our shareholders,” says senior executive vice-president and chief financial officer Graham Shuttleworth. “Anchored by our solid operating performance and cash flows, we continue to maintain a robust balance sheet whilst simultaneously providing our shareholders with meaningful returns.”
*BARRICK UPDATES TAILINGS DISCLOSURE*
*Barrick continues to progress towards compliance with the new Global Industry Standard on Tailings Management (GISTM), in line with its commitment as one of the main supporters of this project.*
Long a leader in the field of tailings management, Barrick has maintained an internal standard that has been updated regularly in line with regulatory requirements, industry guidelines and best practices. This experience enabled it to make a significant contribution to the development of the GISTM. Its tailings storage facilities (TSFs) have been subject to an independent third-party review for the past 20 years.
In the course of this year, Barrick has conducted external and internal reviews of its tailings storage facilities against its internal standard and the GISTM. Based on these reviews it has taken a range of actions to further reduce the potential risk they present. These include the installation of automated data acquisition systems at numerous sites. Barrick’s TSF disclosure has been updated and can be found on our website at www.barrick.com/sustainability.
*ISELA COSTANTINI JOINTS BARRICK BOARD*
*Isela Costantini has been appointed to Barrick’s Board of Directors as an independent director.*
Ms Costantini has over 25 years of experience in international business and is currently the chief executive of Grupo Financiero GST, a privately held asset management company that ranks among Argentina’s leading financial groups. Prior to that, she was president and CEO of Argentina’s national airline, Aerolineas Argentina, as well as president and general director, Argentina, Paraguay and Uruguay, for General Motors.
Executive chairman John Thornton said Ms Costantini would bring a valuable perspective to the board with her wealth of experience in business, government and regulatory affairs in Latin America.
*NGM: NOW FOR THE NEXT VALUE-CREATION PHASE*
*The successful merger of two different sets of assets, systems, people and practices into the fully integrated Nevada Gold Mines (NGM) has been a classic case of the whole exceeding the sum of its parts, says Mark Bristow.*
Bristow, the chairman of NGM and president and CEO of majority owner Barrick, says the combination of Barrick’s Nevada assets’ reserves and grades with Newmont’s infrastructure has delivered industry-leading growth and performance. In the three years since the establishment of the joint venture, it has produced 10 million ounces of gold (on a 100% basis) and added 14.7 million ounces of proven and probable reserves (on a 100% basis before depletion)^15,17,18 as well as 8.5 million ounces of inferred resources (on a 100% basis).^16,17,18
Greatly improved knowledge of the orebodies supports robust 10-year mine plans and has increased the pre-merger life of mine, and new opportunities for innovations and discoveries that will support a 15-year plan have been identified.
“As far as the first phase of NGM’s development is concerned, I think we can safely say: Mission Accomplished,” says Bristow.
“The foundational team did a great job and NGM now needs a new leadership team to oversee its next stage of long-term value creation. At the end of the past quarter, Peter Richardson officially succeeded Greg Walker as executive managing director and Henri Gonin, previously general manager at Carlin, was appointed head of operations. Other senior appointments, internal as well as external, make up the rest of a corporate structure which is fit for NGM’s new purpose.”
NGM set out to be a thoroughly Nevadan business, the partner of choice for the state as well as its communities. Since September 2020, it has contributed more than $5.5 million to Nevadan causes through its five community development committees (CDCs). Each of these covers a different region of Nevada, including the Native American community. NGM’s support is focused on economic development, education, environment, health and cultural heritage.
NGM’s top priority is to create a “Zero-Harm” workplace. A steady decline in the Lost Time Injury Frequency Rate^19 and Total Recordable Injury Frequency Rate^20 in 2022 delivered NGM’s best safety quarter of the year in the three months to September.
*BARRICK AND PAKISTAN REVIEW PROGRESS ON REKO DIQ PROJECT*
*Mark Bristow says the process of completing the final agreements and legal steps that would enable the development of the Reko Diq project is making steady progress.*
Once the transaction is completed, Reko Diq, one of the largest undeveloped copper-gold deposits in the world, will be owned 50% by Barrick, 25% by Balochistan province and 25% by major Pakistani state-owned enterprises (SOEs).
He was speaking after a four-day visit to Pakistan in October 2022 during which he and the project team held discussions with prime minister Shehbaz Sharif and Balochistan chief minister Abdul Quddus Bizenjo and their teams, as well as Barrick’s SOE partners. With the approval of Pakistan president Dr Arif Alvi, the necessary documents for the Presidential Reference were filed on October 15, 2022 with the country’s supreme court, a significant process milestone.
During the course of the trip, the Barrick team also visited Balochistan’s Chagai District, which hosts Reko Diq, to brief local leaders and community stakeholders on the project. Reko Diq will bring enormous benefits to the region in the form of employment, skills and economic development, as well as community initiatives focused on food security, environmental management and access to healthcare, education and potable water.
Bristow says Barrick is setting up community development committees (CDCs) to identify priority projects and supervise their implementation.
“Barrick has been built on successful partnerships with our host countries, and these encompass the full range of stakeholders, from governments through suppliers to the communities around our mines. Our CDC model provides a transparent and accountable mechanism for tailoring development programs to the needs of these communities with their full participation,” he says.
Once the current legal processes have been finalised, Barrick will complete its update of the feasibility study, which currently envisages an open-pit operation with a life of more than 40 years. It is envisaged that the project will be built in two phases at an initial estimated capital cost^21 of approximately $7 billion and is expected to go into production between 2027 and 2028.
While in Pakistan, Bristow announced that Barrick was donating an additional $150,000 to the Balochistan flood relief fund, bringing the company’s total contribution to $300,000.
*INCORPORATION OF NEW PORGERA LIMITED ADVANCES MINE RESTART*
*The incorporation of New Porgera Limited (NPL) on September 22, following execution of the New Porgera Shareholders Agreement by Barrick (Niugini) Limited, Kumul Mineral Holdings Limited and Mineral Resources Enga, marked an important step towards the long-delayed restart of the Porgera mine.*
Once certain conditions are fulfilled, NPL intends to apply for a new Special Mining Lease (SML) in coming weeks.
In Papua New Guinea for quarterly operational reviews, Mark Bristow said that New Porgera will work with the State and the Mineral Resources Authority (MRA) to ensure that the SML application process proceeded without delay and in accordance with the Mining Act and the Porgera Project Commencement Agreement (PPCA).
“The application and early approval of a new SML is the goal that all Porgera stakeholders should be striving for. The mine has sat idle for far too long — more than two and a half years — depriving landowners and the communities of Porgera of employment and other essential benefits that the mine delivered successfully for 30 years,” said Bristow.
Together with Barrick’s executives, Bristow travelled to Porgera to kick-off the security forum alongside the Mining Minister Sir Ano Pala, Porgera MP Maso Karipe, SML and Lease for Mining Purpose landowners, community members, women’s groups and business leaders. Also in attendance was the Enga Provincial Police Commander and representatives of the Enga Provincial Government, Porgera District and PNG Defence Force.
“We had a constructive kick-off meeting in Porgera and everyone agreed that law and order is crucial to the restart of Porgera mine and the long-term future of the Porgera District. The parties will continue to meet and collaborate on law and order initiatives and their implementation. All landowners and community leaders have acknowledged the urgent need for leadership at ground level to complement the work being done by security forces. There was a call from the landowners for the signing of a peace agreement between rival clans in the Porgera Valley and the need for a government endorsed police operation to address the current lawlessness in Porgera,” said Bristow.
As a sign of Barrick’s commitment to restart the operation, the company is building a dedicated team, comprised of a majority of Papua New Guineans, to get the mine up and running so that the people of Porgera can finally see the signs of Porgera’s revival that they have been waiting for. To date, Barrick and Zijin have funded $391 million solely for care and maintenance.
*VELADERO CONTINUES TO EXPLORE AND STRENGTHEN ITS PARTNERSHIP WITH THE COMMUNITY*
*But Warns That In-Country Conditions Could Adversely Affect Mining Industry Viability*
*The Veladero gold mine has reached its 17th anniversary since first gold in October 2005 and the company remains committed to improving the asset, building on strong partnerships with the local community, and exploring to increase its resources.*
Mark Bristow said recent integrated work from the exploration team in the Veladero district had identified four high interest targets that would be tested with drilling campaigns that started in October 2022.
Veladero will also launch four new Community Development Committees (CDCs) in the provinces of Iglesia and Jáchal to further develop an open partnership with local communities, bringing the total CDCs to six, and increasing the frequency of participatory environmental monitoring. The role of the CDCs is to allocate the community investment budget to projects prioritized by local stakeholders, with each committee made up of a mix of local leaders and community members.
“We call San Juan our home and since 2019 we have significantly improved our relations with all stakeholders based on our DNA of open and transparent communication. I’m thrilled to see this commitment expand with the new CDCs in our neighboring communities of Iglesia and Jáchal,” Bristow said.
Another important initiative is to enhance environmental participatory monitoring. The first of these took place at the start of October when water quality samples were collected at Veladero's Compliance Point by community members and analyzed at a certified laboratory. Over the next six months, monitoring will occur monthly and then quarterly, significantly increasing participation from the current annual frequency.
In terms of value creation, the procurement spend with local community suppliers reached US$22 million in the last 12 months. This has generated new opportunities for local suppliers such as earthworks, construction, manufacturing of grinding balls, glass cutting, hardware, mining road maintenance and cargo transportation, among others. At the same time, the company has developed an incubation program for non-mining related small businesses, which has produced about 60 initiatives in the last three years.
“We are exploring in the San Juan province and across the country, and at the same time, we have raised concerns about the mining industry's viability. At Veladero, we have observed how the current financial situation in Argentina, with currency restrictions, inflation, and taxation, combines with the global financial crisis to create risks for the mine plan. As partners, we urgently need to work together for a sustainable long-term future,” Bristow said.
*FURTHER GROWTH TARGETED IN TANZANIA*
*With North Mara and Bulyanhulu set to achieve a combined production in excess of 500,000 ounces*^*22** for the second year running, Barrick is looking to expand its East African footprint from this base.*
Mark Bristow says the resurrection of these moribund mines and their transformation into an asset with the potential to be included in Barrick’s elite Tier One^23 portfolio as a combined complex was a remarkable success story.
“Our groundbreaking Twiga partnership with the Tanzanian government not only settled its long-running disputes with the mines’ previous operators but has established a model for mutually beneficial cooperation between miners and their host countries, particularly in Africa. By demonstrating that Tanzania is an investor-friendly destination it also augurs well for the future of the country’s mining industry,” he said.
Both North Mara and Bulyanhulu have been ramping up production, with North Mara hitting a record 505,000 tonnes of ore and waste mined last quarter.^22 It continues to optimize the underground operation while the change to an owner-mining strategy has boosted the expansion of both the mine and open pit operations. At Bulyanhulu, the development of the main declines to access the Deep West zone of the orebody started last quarter. The production ramp-up at both mines is being supported by fleet upgrades.
“We continue to target further growth through reconnaissance and the consolidation of key licences. Extension opportunities are being assessed along the Gokona strike and throughout the Bulyanhulu Inlier. Results from the deep drilling at Gokona are pointing to a significant potential for extending North Mara’s life,” Bristow said.
“In addition to the brownfields exploration designed to maintain the positive trend on resource expansion and conversion at the two mines, we are also looking further afield. A better understanding of the region’s geological architecture will improve our ability to discover new world-class development opportunities in our areas of interest.”
In line with Barrick’s localization policy, Tanzanians make up 96% of the mines’ workforces, with 45% drawn from the communities surrounding the mines. Host country nationals account for 58% of the senior management. During the past quarter, the mines spent $339 million with Tanzanian suppliers and service providers. Since it took over the mines in 2019, Barrick has contributed over $2.1 billion to the Tanzanian economy.
*LUMWANA SHOWS BARRICK’S COMMITMENT TO COPPER*
*The transformation of Lumwana from a marginal copper asset into a world-class operation demonstrates the commitment of Barrick to expanding its copper holdings in Africa and globally.*
Mark Bristow says since 2019, Lumwana’s fortunes had been turned around completely. Its life has been extended and it has been built into a profitable business, with significant growth opportunities. A solid year to date performance has kept it on track to achieve its annual production guidance.
Now one of Zambia’s largest copper producers, it employs more than 4,400 people, 99.3% of them Zambian nationals. It has an exceptional safety record, with no fatalities since 2016 and a Lost Time Injury Frequency Rate^19 of less than 1.0% over the past 10 years.
“As a lower-grade mine, Lumwana is volume-driven and there is a strong focus on driving down operational costs by achieving efficiencies through scaled operations. This year’s production has already benefited from the improved runtimes provided by a new fleet of trucks and shovels. The planned upgrade of the conveyor system will secure steady ore delivery to the plant, boosting throughput and production next year,” Bristow said.
“Promising drill results at the Lubwe satellite target are increasing our confidence that we will be able to develop a super pit and still keep producing at today’s rates and more. Should the super pit prove viable, it will substantially extend the mine’s life with a two year pre-feasibility study scheduled to commence in 2023. In addition to Lubwe, the assessment of the Kamaranda and Kababisa prospects is ongoing with drill programmes planned for the fourth quarter and potential to add additional satellites. It’s worth noting that the government’s new mineral royalty tax regime, scheduled to come into effect in January next year, will unlock additional free cash flow for Barrick, allowing us to reinvest in Lumwana.”
*EXPLORATION SUCCESS SECURES KIBALI’S FUTURE*
*The ability of Africa’s largest gold mine to replace its reserves beyond depletion will secure its position as one of Barrick’s Tier One assets well into the future.*
Mark Bristow says the 13-year-old mine, which has just improved its performance for the third consecutive quarter, still had an enormous upside. With its exploration prospect pipeline continuing to expand, it was well set to maintain its business plan for at least another 10 years.
Kibali’s underground operations are being further extended by two years through the addition of the 11,000 Lode to the mine plan. This lode continues to deliver promising results, unlocking additional value, and remains open down plunge. Drilling is also under way at the Mengu Hill, Agbarabo, Rhino, Zambula and Makoro targets which are showing potential as additional underground and open pit satellites.
Bristow said with an in-country investment of $4.2 billion, Kibali had made a significant contribution to the Congolese state’s coffers. More importantly, it had transformed the country’s previously undeveloped north-eastern region into a thriving new economic frontier.
During the past quarter, minister of mines HE Antoinette N'Samba Kalambayi launched the steering committee which will manage Kibali’s social development fund, based on 0.3% of the mine’s annual turnover. An amount of $13.7 million, accrued over the past three years, has already been earmarked for community projects which will be launched this year. The new 2,500-seat Catholic church in Kokiza has recently been officially handed over to and accepted by the Diocese and its approximately 30,000 strong congregation, who were resettled in the new village between 2010 and 2016.
Barrick also continues to invest in the future of Africa’s biodiversity with the planned reintroduction of 76 white rhinos to the Garamba National Park, a critical move in the long-term plan to protect this endangered species.
*DELIVERING 25 YEARS OF VALUE TO MALI, WITH MORE TO COME*
*Barrick’s Loulo, Gounkoto and the former Morila mines have contributed $8.7 billion to the Malian economy in the 25 years the company has been in the country and over the past decade have accounted for between 5% and 10% of its GDP.*
Mark Bristow says that throughout Barrick’s long partnership with Mali, it had supported the country during some difficult times in its history. Its relationship with successive governments continues to be mutually beneficial, with the Loulo-Gounkoto complex — one of the company’s elite Tier One assets — on track to meet its 2022 production guidance.
“In line with our long-term commitment to Mali, we continue to invest in exploration to extend the life of the complex, which regularly more than replaces the gold it mines each year. The Loulo district is still delivering high-quality targets and we’re upgrading the complex’s infrastructure to support both open pit pushbacks and extensions at Yalea and Gara. In the meantime, the new Gounkoto underground mine is progressing its development towards scheduled commencement of stoping next year,” he said.
Bristow noted that Loulo-Gounkoto was an outstanding example of Barrick’s policy of recruiting and developing the people of its host countries. Malian nationals account for 95% of the complex’s workforce and they are led by an all-Malian management team. Similarly, it has invested in the growth of local business partners, ranging from key contractors to fuel and lubricant suppliers. In the year to date, it has spent $395 million with these partners, representing 80% of its total purchases.
Loulo-Gounkoto has also significantly improved the quality of life in its surrounding communities through its investment in projects designed to provide them with access to healthcare, education, food security and potable water. A local entrepreneurship programme has directly created more than 1,200 jobs.
Malaria remains one of Africa’s biggest health problems and Loulo-Gounkoto is taking aggressive action to reverse the recent rise in the infection rate after a long period in which it steadily decreased. This includes a door-to-door awareness campaign in the local villages, a workshop held alongside the country’s national director of malaria control, close cooperation with regional healthcare authorities and working with other mining companies to identify and leverage synergies in the various malaria response plans.
*Appendix 1*
*2022 Operating and Capital Expenditure Guidance*
*GOLD PRODUCTION AND COSTS* 2022 forecast attributable production (000s oz) 2022 forecast cost of sales^10 ($/oz) 2022 forecast total cash costs^11 ($/oz) 2022 forecast all-in sustaining costs^11 ($/oz)
Carlin (61.5%)^24 950 - 1,030 900 - 980 730 - 790 1,020 - 1,100
Cortez (61.5%)^25 480 - 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%)^26 — — — —
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
Bulyanhulu (84%) 180 - 210 950 - 1,030 630 - 690 850 - 930
Tongon (89.7%) 170 - 200 1,700 - 1,780 1,220 - 1,280 1,400 - 1,480
Africa & Middle East 1,450 - 1,600 1,070 - 1,150 720 - 780 950 - 1,030
*Total Attributable to Barrick*^*27,28,29* 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^10 ($/lb) 2022 forecast C1 cash costs^12 ($/lb) 2022 forecast all-in sustaining costs^12 ($/lb)
Lumwana 250 - 280 2.20 - 2.50 1.60 - 1.80 3.10 - 3.40
Zaldívar (50%) 100 - 120 2.70 - 3.00 2.00 - 2.20 2.50 - 2.80
Jabal Sayid (50%) 70 - 80 1.40 - 1.70 1.30 - 1.50 1.30 - 1.60
*Total Attributable to Barrick*^*28* 420 - 470 2.20 - 2.50 1.70 - 1.90 2.70 - 3.00
*ATTRIBUTABLE CAPITAL EXPENDITURES* ($ millions)
Attributable minesite sustaining^8 1,350 - 1,550
Attributable project^8 550 - 650
*Total attributable capital expenditures*^9 1,900 - 2,200
*
2022 OUTLOOK ASSUMPTIONS AND ECONOMIC SENSITIVITY ANALYSIS* 2022 Guidance Assumption Hypothetical Change Impact on EBITDA^30 (millions) Impact on TCC and AISC^11,12
Gold price sensitivity $1,700/oz ‘+ $100/oz + $580 + $4/oz
Copper price sensitivity $4/lb +/- $0.25/lb +/- $60 ‘+/- $0.02/lb
***Appendix 2*
*Production and Cost Summary - Gold***
For the three months ended *9/30/22* 6/30/22 % Change 9/30/21 % Change
*Nevada Gold Mines LLC (61.5%)^a*
Gold produced (000s oz attributable basis) * 425 * 462 (8 )% 495 (14 )%
Gold produced (000s oz 100% basis) * 691 * 751 (8 )% 805 (14 )%
Cost of sales ($/oz) * 1,242 * 1,171 6 % 1,123 11 %
Total cash costs ($/oz)^b * 924 * 856 8 % 734 26 %
All-in sustaining costs ($/oz)^b * 1,333 * 1,238 8 % 975 37 %
*Carlin (61.5%)^c*
Gold produced (000s oz attributable basis) * 229 * 243 (6 )% 209 10 %
Gold produced (000s oz 100% basis) * 372 * 394 (6 )% 340 10 %
Cost of sales ($/oz) * 1,137 * 1,042 9 % 1,017 12 %
Total cash costs ($/oz)^b * 943 * 862 9 % 814 16 %
All-in sustaining costs ($/oz)^b * 1,304 * 1,192 9 % 1,124 16 %
*Cortez (61.5%)^d*
Gold produced (000s oz attributable basis) * 98 * 97 1 % 130 (25 )%
Gold produced (000s oz 100% basis) * 160 * 158 1 % 212 (25 )%
Cost of sales ($/oz) * 1,056 * 1,168 (10 )% 1,164 (9 )%
Total cash costs ($/oz)^b * 770 * 850 (9 )% 800 (4 )%
All-in sustaining costs ($/oz)^b * 1,426 * 1,538 (7 )% 1,065 34 %
*Turquoise Ridge (61.5%)*
Gold produced (000s oz attributable basis) * 62 * 75 (17 )% 82 (24 )%
Gold produced (000s oz 100% basis) * 102 * 122 (17 )% 134 (24 )%
Cost of sales ($/oz) * 1,509 * 1,289 17 % 1,169 29 %
Total cash costs ($/oz)^b * 1,105 * 928 19 % 788 40 %
All-in sustaining costs ($/oz)^b * 1,423 * 1,195 19 % 943 51 %
*Phoenix (61.5%)^c*
Gold produced (000s oz attributable basis) * 30 * 26 15 % 31 (3 )%
Gold produced (000s oz 100% basis) * 47 * 43 15 % 50 (3 )%
Cost of sales ($/oz) * 1,964 * 2,114 (7 )% 1,777 11 %
Total cash costs ($/oz)^b * 953 * 895 6 % 499 91 %
All-in sustaining costs ($/oz)^b * 1,084 * 1,152 (6 )% 582 86 %
*Long Canyon (61.5%)*
Gold produced (000s oz attributable basis) * 6 * 21 (71 )% 43 (86 )%
Gold produced (000s oz 100% basis) * 10 * 34 (71 )% 69 (86 )%
Cost of sales ($/oz) * 1,769 * 1,280 38 % 796 122 %
Total cash costs ($/oz)^b * 662 * 450 47 % 201 229 %
All-in sustaining costs ($/oz)^b * 684 * 459 49 % 251 173 %
*Pueblo Viejo (60%)*
Gold produced (000s oz attributable basis) * 121 * 105 15 % 127 (5 )%
Gold produced (000s oz 100% basis) * 202 * 175 15 % 212 (5 )%
Cost of sales ($/oz) * 1,097 * 1,154 (5 )% 895 23 %
Total cash costs ($/oz)^b * 733 * 724 1 % 521 41 %
All-in sustaining costs ($/oz)^b * 1,063 * 1,024 4 % 728 46 %
*Loulo-Gounkoto (80%)*
Gold produced (000s oz attributable basis) * 130 * 140 (7 )% 137 (5 )%
Gold produced (000s oz 100% basis) * 162 * 175 (7 )% 171 (5 )%
Cost of sales ($/oz) * 1,220 * 1,093 12 % 1,109 10 %
Total cash costs ($/oz)^b * 845 * 730 16 % 708 19 %
All-in sustaining costs ($/oz)^b * 1,216 * 1,013 20 % 1,056 15 %
*Kibali (45%)*
Gold produced (000s oz attributable basis) * 83 * 81 2 % 95 (13 )%
Gold produced (000s oz 100% basis) * 184 * 180 2 % 209 (13 )%
Cost of sales ($/oz) * 1,047 * 1,164 (10 )% 987 6 %
Total cash costs ($/oz)^b * 731 * 738 (1 )% 597 22 %
All-in sustaining costs ($/oz)^b * 876 * 946 (7 )% 751 17 %
*Veladero (50%)*
Gold produced (000s oz attributable basis) * 41 * 58 (29 )% 48 (15 )%
Gold produced (000s oz 100% basis) *83* 116 (29 )% 96 (15 )%
Cost of sales ($/oz) * 1,430 * 1,369 4 % 1,315 9 %
Total cash costs ($/oz)^b * 893 * 861 4 % 882 1 %
All-in sustaining costs ($/oz)^b * 1,570 * 1,461 7 % 1,571 %
*Porgera (47.5%)^e*
Gold produced (000s oz attributable basis) * — * — — % — — %
Gold produced (000s oz 100% basis) * — * — — % — — %
Cost of sales ($/oz) * — * — — % — — %
Total cash costs ($/oz)^b * — * — — % — — %
All-in sustaining costs ($/oz)^b * — * — — % — — %
*Tongon (89.7%)*
Gold produced (000s oz attributable basis) *41* 41 % 41 %
Gold produced (000s oz 100% basis) *46* 46 % 45 %
Cost of sales ($/oz) * 1,744 * 2,025 (14 )% 1,579 10 %
Total cash costs ($/oz)^b * 1,462 * 1,558 (6 )% 1,139 28 %
All-in sustaining costs ($/oz)^b * 1,607 * 1,655 (3 )% 1,329 21 %
*Hemlo*
Gold produced (000s oz) *28* 36 (22 )% 26 8 %
Cost of sales ($/oz) * 1,670 * 1,698 (2 )% 1,870 (11 )%
Total cash costs ($/oz)^b * 1,446 * 1,489 (3 )% 1,493 (3 )%
All-in sustaining costs ($/oz)^b * 1,865 * 1,804 3 % 2,276 (18 )%
*North Mara (84%)*
Gold produced (000s oz attributable basis) *71* 66 8 % 66 8 %
Gold produced (000s oz 100% basis) *84* 79 8 % 79 8 %
Cost of sales ($/oz) * 956 * 1,060 (10 )% 993 (4 )%
Total cash costs ($/oz)^b * 737 * 756 (3 )% 796 (7 )%
All-in sustaining costs ($/oz)^b * 951 * 957 (1 )% 985 (3 )%
*Buzwagi (84%)^f*
Gold produced (000s oz attributable basis) 4
Gold produced (000s oz 100% basis) 5
Cost of sales ($/oz) 1,000
Total cash costs ($/oz)^b 967
All-in sustaining costs ($/oz)^b 970
*Bulyanhulu (84%)*
Gold produced (000s oz attributable basis) *48* 54 (11 )% 53 (9 )%
Gold produced (000s oz 100% basis) *58* 65 (11 )% 63 (9 )%
Cost of sales ($/oz) * 1,229 * 1,163 6 % 1,073 15 %
Total cash costs ($/oz)^b *898* 836 7 % 724 24 %
All-in sustaining costs ($/oz)^b * 1,170 * 1,094 7 % 827 41 %
*Total Attributable to Barrick^g*
Gold produced (000s oz) * 988 * 1,043 (5 )% 1,092 (10 )%
Cost of sales ($/oz)^h * 1,226 * 1,216 1 % 1,122 9 %
Total cash costs ($/oz)^b * 891 * 855 4 % 739 21 %
All-in sustaining costs ($/oz)^b * 1,269 * 1,212 5 % 1,034 23 %
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 *9/30/22* 6/30/22 % Change 9/30/21 % Change
*Lumwana*
Copper production (Mlbs) *82* 75 9 % 57 44 %
Cost of sales ($/lb) *2.19* 2.01 9 % 2.54 (14)%
C1 cash costs ($/lb)^a *1.78* 1.68 6 % 1.76 1 %
All-in sustaining costs ($/lb)^a *3.50* 3.28 7 % 2.68 31 %
*Zald**í**var (50%)*
Copper production (Mlbs attributable basis) *23* 25 (8)% 24 (4)%
Copper production (Mlbs 100% basis) *45* 50 (8)% 48 (4)%
Cost of sales ($/lb) *3.20* 2.88 11 % 3.13 2 %
C1 cash costs ($/lb)^a *2.45* 2.17 13 % 2.33 5 %
All-in sustaining costs ($/lb)^a *2.94* 2.65 11 % 2.77 6 %
*Jabal Sayid (50%)*
Copper production (Mlbs attributable basis) *18* 20 (10)% 19 (5)%
Copper production (Mlbs 100% basis) *37* 40 (10)% 38 (5)%
Cost of sales ($/lb) *1.58* 1.45 9 % 1.51 5 %
C1 cash costs ($/lb)^a *1.41* 1.09 29 % 1.35 4 %
All-in sustaining costs ($/lb)^a *1.52* 1.19 28 % 1.55 (2)%
*Total Attributable to Barrick*
Copper production (Mlbs) *123* 120 3 % 100 23 %
Cost of sales ($/lb)^b *2.30* 2.11 9 % 2.57 (11)%
C1 cash costs ($/lb)^a *1.86* 1.70 9 % 1.85 1 %
All-in sustaining costs ($/lb)^a *3.13* 2.87 9 % 2.60 20 %
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 nine months ended
*9/30/22* 6/30/22 % Change 9/30/21 % Change *9/30/22* 9/30/21 % Change
*Financial Results* ($ millions)
Revenues *2,527* 2,859 (12 )% 2,826 (11 )% *8,239* 8,675 (5 )%
Cost of sales *1,815* 1,850 (2 )% 1,768 3 % *5,404* 5,184 4 %
Net earnings^a *241* 488 (51 )% 347 (31 )% *1,167* 1,296 (10 )%
Adjusted net earnings^b *224* 419 (47 )% 419 (47 )% *1,106* 1,439 (23 )%
Adjusted EBITDA^b *1,155* 1,527 (24 )% 1,669 (31 )% *4,327* 5,188 (17 )%
Adjusted EBITDA margin^c *46* *%* 53 % (13 )% 59 % (22 )% *53* *%* 60 % (12 )%
Minesite sustaining capital expenditures^b,d *571* 523 9 % 386 48 % *1,514* 1,242 22 %
Project capital expenditures^b,d *213* 226 (6 )% 179 19 % *625* 513 22 %
Total consolidated capital expenditures^d,e *792* 755 5 % 569 39 % *2,158* 1,766 22 %
Net cash provided by operating activities *758* 924 (18 )% 1,050 (28 )% *2,686* 2,991 (10 )%
Net cash provided by operating activities margin^f *30* *%* 32 % (6 )% 37 % (19 )% *33* *%* 34 % (3 )%
Free cash flow^b *(34* *)* 169 (120 )% 481 (107 )% *528* 1,225 (57 )%
Net earnings per share (basic and diluted) *0.14* 0.27 (48 )% 0.20 (30 )% *0.66* 0.73 (10 )%
Adjusted net earnings (basic)^b per share *0.13* 0.24 (46 )% 0.24 (46 )% *0.62* 0.81 (23 )%
Weighted average diluted common shares (millions of shares) *1,768* 1,777 (1 )% 1,779 (1 )% *1,775* 1,779 %
*Operating Results*
Gold production (thousands of ounces)^g *988* 1,043 (5 )% 1,092 (10 )% *3,021* 3,234 (7 )%
Gold sold (thousands of ounces)^g *997* 1,040 (4 )% 1,071 (7 )% *3,030* 3,234 (6 )%
Market gold price ($/oz) *1,729* 1,871 (8 )% 1,790 (3 )% *1,824* 1,800 1 %
Realized gold price^b,g ($/oz) *1,722* 1,861 (7 )% 1,771 (3 )% *1,820* 1,789 2 %
Gold cost of sales (Barrick’s share)^g,h ($/oz) *1,226* 1,216 1 % 1,122 9 % *1,211* 1,101 10 %
Gold total cash costs^b,g ($/oz) *891* 855 4 % 739 21 % *859* 728 18 %
Gold all-in sustaining costs^b,g ($/oz) *1,269* 1,212 5 % 1,034 23 % *1,215* 1,046 16 %
Copper production (millions of pounds)^g *123* 120 3 % 100 23 % *344* 289 19 %
Copper sold (millions of pounds)^g *120* 113 6 % 101 19 % *346* 310 12 %
Market copper price ($/lb) *3.51* 4.32 (19 )% 4.25 (17 )% *4.11* 4.17 (1 )%
Realized copper price^b,g ($/lb) *3.24* 3.72 (13 )% 3.98 (19 )% *3.86* 4.21 (8 )%
Copper cost of sales (Barrick’s share)^g,i ($/lb) *2.30* 2.11 9 % 2.57 (11 )% *2.21* 2.36 (6 )%
Copper C1 cash costs^b,g ($/lb) *1.86* 1.70 9 % 1.85 1 % *1.79* 1.75 2 %
Copper all-in sustaining costs^b,g ($/lb) *3.13* 2.87 9 % 2.60 20 % *2.96* 2.52 17 % *As at 9/30/22* As at 6/30/22 % Change As at 9/30/21 % Change
*Financial Position* ($ millions)
Debt (current and long-term) *5,095* 5,144 (1 )% 5,154 (1 )%
Cash and equivalents *5,240* 5,780 (9 )% 5,043 4 %
Debt, net of cash *(145* *)* (636 ) (77 )% 111 (231 )%
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 $8 million and $19 million, respectively, for the three and nine month periods ended September 30, 2022 (June 30, 2022: $6 million and September 30, 2021: $4 million and $11 million, respectively).
6. Represents net cash provided by operating activities divided by revenue.
7. On an attributable basis.
8. Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using Barrick's ownership share).
9. Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick's ownership share).
*Consolidated Statements of Income*
Barrick Gold Corporation
(in millions of United States dollars, except per share data) (Unaudited) Three months ended September 30, Nine months ended September 30, *2022* 2021 *2022* 2021
*Revenue (notes 5 and 6)* *$* *2,527* $ 2,826 *$* *8,239* $ 8,675
*Costs and expenses (income)*
Cost of sales (notes 5 and 7) *1,815* 1,768 *5,404* 5,184
General and administrative expenses *26* 27 *110* 112
Exploration, evaluation and project expenses *77* 67 *244* 205
Impairment (reversals) charges (notes 9b and 13) *24* 10 *29* (77 )
Loss on currency translation *3* 5 *12* 16
Closed mine rehabilitation *(55* *)* 4 *(180* *)* 33
Income from equity investees (note 12) *(52* *)* (101 ) *(240* *)* (308 )
Other (income) expense (note 9a) *(9* *)* 18 *(18* *)* 63
*Income before finance costs and income taxes* *$* *698* $ 1,028 *$* *2,878* $ 3,447
Finance costs, net *(73* *)* (93 ) *(250* *)* (271 )
*Income before income taxes* *$* *625* $ 935 *$* *2,628* $ 3,176
Income tax expense (note 10) *(215* *)* (323 ) *(795* *)* (1,040 )
*Net income* *$* *410* $ 612 *$* *1,833* $ 2,136
*Attributable to:*
Equity holders of Barrick Gold Corporation *$* *241* $ 347 *$* *1,167* $ 1,296
Non-controlling interests (note 17) *$* *169* $ 265 *$* *666* $ 840
*Earnings per share data attributable to the equity holders of Barrick Gold Corporation (note 8)*
Net income
Basic *$* *0.14* $ 0.20 *$* *0.66* $ 0.73
Diluted *$* *0.14* $ 0.20 *$* *0.66* $ 0.73
The notes to these unaudited condensed interim financial statements, which are contained in the Third 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 September 30, Nine months ended September 30, *2022* 2021 *2022* 2021
Net income *$* *410* $ 612 *$* *1,833* $ 2,136
*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 *1* — *1* 3
Currency translation adjustments, net of tax $nil, $nil, $nil and $nil *1* 2 *2* 2
*Items that will not be reclassified to profit or loss:*
Actuarial loss on post employment benefit obligations, net of tax $nil, $nil, $nil and $nil *(1* *)* — *(2* *)* —
Net change on equity investments, net of tax $nil, $2, ($6) and $7 *3* (12 ) *35* (49 )
*Total other comprehensive income (loss)* *4* (10 ) *36* (44 )
*Total comprehensive income* *$* *414* $ 602 *$* *1,869* $ 2,092
*Attributable to:*
Equity holders of Barrick Gold Corporation *$* *245* $ 337 *$* *1,203* $ 1,252
Non-controlling interests *$* *169* $ 265 *$* *666* $ 840
The notes to these unaudited condensed interim financial statements, which are contained in the Third 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 September 30, Nine months ended September 30, *2022* 2021 *2022* 2021
*OPERATING ACTIVITIES *
Net income *$* *410* $ 612 *$* *1,833* $ 2,136
Adjustments for the following items:
Depreciation *457* 538 *1,393* 1,545
Finance costs, net *103* 101 *302* 295
Impairment (reversals) charges (notes 9b and 13) *24* 10 *29* (77 )
Income tax expense (note 10) *215* 323 *795* 1,040
Income from equity investees (note 12) *(52* *)* (101 ) *(240* *)* (308 )
Gain on sale of non-current assets *(64* *)* (5 ) *(86* *)* (15 )
Loss on currency translation *3* 5 *12* 16
Change in working capital (note 11) *(52* *)* 58 *(217* *)* (191 )
Other operating activities (note 11) *(91* *)* (17 ) *(294* *)* (133 )
Operating cash flows before interest and income taxes *953* 1,524 *3,527* 4,308
Interest paid *(23* *)* (18 ) *(175* *)* (171 )
Income taxes paid^1 *(172* *)* (456 ) *(666* *)* (1,146 )
*Net cash provided by operating activities* *758* 1,050 *2,686* 2,991
*INVESTING ACTIVITIES*
Property, plant and equipment
Capital expenditures (note 5) *(792* *)* (569 ) *(2,158* *)* (1,766 )
Sales proceeds *52* 16 *75* 21
Investment sales *—* — *382* —
Divestitures (note 4) *—* — *—* 19
Dividends received from equity method investments (note 12) *101* 53 *770* 214
Shareholder loan repayments from equity method investments (note 12) *—* 1 *—* 2
*Net cash used in investing activities* *(639* *)* (499 ) *(931* *)* (1,510 )
*FINANCING ACTIVITIES*
Lease repayments *(6* *)* (5 ) *(16* *)* (15 )
Debt repayments *(56* *)* — *(56* *)* (7 )
Dividends *(351* *)* (158 ) *(882* *)* (475 )
Return of capital (note 16) *—* (250 ) *—* (500 )
Share buyback program (note 16) *(141* *)* — *(314* *)* —
Funding from non-controlling interests (note 17) *—* — *—* 12
Disbursements to non-controlling interests (note 17) *(162* *)* (270 ) *(661* *)* (741 )
Other financing activities (note 11) *60* 37 *140* 101
*Net cash used in financing activities* *(656* *)* (646 ) *(1,789* *)* (1,625 )
*Effect of exchange rate changes on cash and equivalents* *(3* *)* — *(6* *)* (1 )
Net decrease in cash and equivalents *(540* *)* (95 ) *(40* *)* (145 )
*Cash and equivalents at the beginning of period * *5,780* 5,138 *5,280* 5,188
*Cash and equivalents at the end of period* *$* *5,240* $ 5,043 *$* *5,240* $ 5,043
1. Income taxes paid excludes $59 million (2021: $(26) million) for the three months ended September 30, 2022 and $95 million (2021: $67 million) for the nine months ended September 30, 2022 of income taxes payable that were settled against offsetting VAT receivables.
The notes to these unaudited condensed interim financial statements, which are contained in the Third Quarter Report 2022 available on our website, are an integral part of these consolidated financial statements.
*Consolidated Balance Sheets*
Barrick Gold Corporation *As at September 30,* As at December 31,
(in millions of United States dollars) (Unaudited) *2022* 2021
*ASSETS*
Current assets
Cash and equivalents *$* *5,240* $ 5,280
Accounts receivable *499* 623
Inventories *1,691* 1,734
Other current assets *786* 612
Total current assets *$* *8,216* $ 8,249
Non-current assets
Equity in investees (note 12) *4,064* 4,594
Property, plant and equipment *25,329* 24,954
Goodwill *4,769* 4,769
Intangible assets *149* 150
Deferred income tax assets *—* 29
Non-current portion of inventory *2,815* 2,636
Other assets *1,100* 1,509
*Total assets* *$* *46,442* $ 46,890
*LIABILITIES AND EQUITY*
Current liabilities
Accounts payable *$* *1,571* $ 1,448
Debt (note 14a) *12* 15
Current income tax liabilities *192* 285
Other current liabilities *413* 338
Total current liabilities *$* *2,188* $ 2,086
Non-current liabilities
Debt (note 14a) *5,083* 5,135
Provisions *2,110* 2,768
Deferred income tax liabilities *3,461* 3,293
Other liabilities *1,293* 1,301
*Total liabilities* *$* *14,135* $ 14,583
Equity
Capital stock (note 16) *$* *28,220* $ 28,497
Deficit *(6,284* *)* (6,566 )
Accumulated other comprehensive income (loss) *13* (23 )
Other *1,915* 1,949
*Total equity attributable to Barrick Gold Corporation shareholders* *$* *23,864* $ 23,857
Non-controlling interests (note 17) *8,443* 8,450
*Total equity* *$* *32,307* $ 32,307
Contingencies and commitments (notes 5 and 18)
*Total liabilities and equity* *$* *46,442* $ 46,890
The notes to these unaudited condensed interim financial statements, which are contained in the Third 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* *$**32,307*
Net income — — 1,167 — — 1,167 666 1,833
Total other comprehensive income — — — 36 — 36 — 36
Total comprehensive income — — 1,167 36 — 1,203 666 1,869
Transactions with owners
Dividends — — (882 ) — — (882 ) — (882 )
Disbursements to non-controlling interests (note 17) — — — — — — (673 ) (673 )
Dividend reinvestment plan (note 16) 204 3 (3 ) — — — — —
Share buyback program (note 16) (17,500 ) (280 ) — — (34 ) (314 ) — (314 )
Total transactions with owners (17,296 ) (277 ) (885 ) — (34 ) (1,196 ) (673 ) (1,869 )
*At September 30, 2022* *1,762,035* *$**28,220* *($**6,284* *)* *$**13* *$**1,915* *$**23,864* *$**8,443* *$**32,307*
*At January 1, 2021* *1,778,190* *$**29,236* *($**7,949* *)* *$**14* *$**2,040* *$**23,341* *$**8,369* *$**31,710*
Net income — — 1,296 — — 1,296 840 2,136
Total other comprehensive loss — — — (44 ) — (44 ) — (44 )
Total comprehensive income (loss) — — 1,296 (44 ) — 1,252 840 2,092
Transactions with owners
Dividends — — (475 ) — — (475 ) — (475 )
Return of capital (note 16) — (500 ) — — — (500 ) — (500 )
Issued on exercise of stock options 50 — — — — — — —
Funding from non-controlling interests — — — — — — 12 12
Disbursements to non-controlling interests — — — — — — (749 ) (749 )
Dividend reinvestment plan 147 4 (4 ) — — — — —
Share-based payments 899 6 — — (6 ) — — —
Total transactions with owners 1,096 (490 ) (479 ) — (6 ) (975 ) (737 ) (1,712 )
*At September 30, 2021* *1,779,286* *$**28,746* *($**7,132* *)* *($**30* *)* *$**2,034* *$**23,618* *$**8,472* *$**32,090*
1. Includes cumulative translation losses at September 30, 2022: $92 million (December 31, 2021: $94 million; September 30, 2021: $94 million).
2. Includes additional paid-in capital as at September 30, 2022: $1,877 million (December 31, 2021: $1,911 million; September 30, 2021: $1,996 million).
The notes to these unaudited condensed interim financial statements, which are contained in the Third 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, FAusIMM, in both his capacity as Mineral Resources Manager: Africa & Middle East and Mineral Resource Management and Evaluation Executive (Mr. Bottoms held the title of Mineral Resources Manager: Africa & Middle East until September 30, 2022, and was promoted to Mineral Resource Management and Evaluation Executive effective October 1, 2022); John Steele, CIM, Metallurgy, Engineering and Capital Projects Executive; and Rob Krcmarov, FAusIMM, Technical Advisor to Barrick — each a “Qualified Person” as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
All mineral reserve and mineral resource estimates are estimated in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Unless otherwise noted, such mineral reserve and mineral resource estimates are as of December 31, 2021.
*Endnotes*
*Endnote 1*
Includes 0.5 million Barrick shares repurchased for $8 million in September 2022 and settled in October