All amounts expressed in US dollars
The preliminary Q4 results show sales of 1.04 million ounces of gold and 117 million pounds of copper, as well as preliminary Q4 production of 1.05 million ounces of gold and 113 million pounds of copper. The average market price for gold in Q4 was
Preliminary Q4 gold production was an improvement on Q3 and was the highest quarter for the year with stronger performances from Cortez,
Preliminary Q4 copper production was in line with Q3, with consistent production across all three sites. Compared to Q3, Q4 copper cost of sales per pound2 is expected to be 8% to 10% higher, C1 cash costs per pound3 are expected to be 5% to 7% higher and all-in sustaining costs per pound3 is expected to be 2% to 4% lower, principally on the back of lower capitalized waste stripping at Lumwana.
Barrick will provide additional discussion and analysis regarding its full year and Q4 2023 production and sales when the Company reports its quarterly and full year results before North American markets open on
The following table includes preliminary gold and copper production and sales results from Barrick's operations:
Three months ended | Twelve months ended | |||
Production | Sales | Production | Sales | |
Gold (attributable ounces (000)) | ||||
Carlin (61.5%) | 224 | 220 | 868 | 865 |
Cortez (61.5%) | 162 | 164 | 549 | 548 |
84 | 86 | 316 | 318 | |
41 | 39 | 123 | 120 | |
2 | 2 | 9 | 9 | |
513 | 511 | 1,865 | 1,860 | |
Loulo-Gounkoto (80%) | 127 | 127 | 547 | 546 |
Kibali (45%) | 93 | 92 | 343 | 343 |
Pueblo Viejo (60%) | 90 | 89 | 335 | 335 |
North Mara (84%) | 59 | 61 | 253 | 254 |
Veladero (50%) | 55 | 46 | 207 | 182 |
Tongon (89.7%) | 42 | 42 | 183 | 185 |
Bulyanhulu (84%) | 41 | 41 | 180 | 180 |
34 | 33 | 141 | 139 | |
Total Gold | 1,054 | 1,042 | 4,054 | 4,024 |
Copper (attributable pounds (millions)) | ||||
Lumwana | 73 | 70 | 260 | 249 |
Zaldívar (50%) | 23 | 26 | 89 | 92 |
17 | 21 | 71 | 67 | |
Total Copper | 113 | 117 | 420 | 408 |
Fourth Quarter and Full Year 2023 Results
Barrick will release its Q4 and full year 2023 results before market open on
Go to the webinar
US and
International (toll) +1 416 915 3239
The Q4 and full year 2023 presentation materials will be available on Barrick’s website at www.barrick.com.
The webinar will remain on the website for later viewing, and the conference call will be available for replay by telephone at 1 855 669 9658 (US and
Enquiries:
Investor and Media Relations
+44 20 7557 7738
barrick@dpapr.com
Website: www.barrick.com
Technical Information
The scientific and technical information contained in this news release has been reviewed and approved by:
Endnote 1
Porgera was placed on temporary care and maintenance from
Endnote 2
Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in care and maintenance) divided by ounces sold (both on an attributable basis based on Barrick’s ownership share). 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 based on Barrick’s ownership share).
References to attributable basis means our 100% share of
Endnote 3
Total cash costs per ounce and all-in sustaining costs per ounce are non-GAAP financial measures which are calculated based on the definition published by the
Total cash costs start with our cost of sales related to gold production and removes depreciation, the non-controlling interest of cost of sales and includes by-product credits. All-in sustaining costs start with total cash costs and include sustaining capital expenditures, sustaining leases, general and administrative costs, minesite exploration and evaluation costs and reclamation cost accretion and amortization. These additional costs reflect the expenditures made to maintain current production levels.
We believe that our use of total cash costs and all-in sustaining costs will assist analysts, investors and other stakeholders of Barrick in understanding the costs associated with producing gold, understanding the economics of gold mining, assessing our operating performance and also our ability to generate free cash flow from current operations and to generate free cash flow on an overall company basis. Due to the capital-intensive nature of the industry and the long useful lives over which these items are depreciated, there can be a significant timing difference between net earnings calculated in accordance with IFRS and the amount of free cash flow that is being generated by a mine and therefore we believe these measures are useful non-GAAP operating metrics and supplement our IFRS disclosures. These measures are not representative of all of our cash expenditures as they do not include income tax payments, interest costs or dividend payments. These measures do not include depreciation or amortization.
Total cash costs per ounce and all-in sustaining costs per ounce are intended to provide additional information only and do not have standardized definitions under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not equivalent to net income or cash flow from operations as determined under IFRS. Although the WGC has published a standardized definition, other companies may calculate these measures differently.
C1 cash costs per pound and all-in sustaining costs per pound are non-GAAP financial measures related to our copper mine operations. We believe that C1 cash costs per pound enables investors to better understand the performance of our copper operations in comparison to other copper producers who present results on a similar basis. C1 cash costs per pound excludes royalties and production taxes and non-routine charges as they are not direct production costs. All-in sustaining costs per pound is similar to the gold all-in sustaining costs metric and management uses this to better evaluate the costs of copper production. We believe this measure enables investors to better understand the operating performance of our copper mines as this measure reflects all of the sustaining expenditures incurred in order to produce copper. All-in sustaining costs per pound includes C1 cash costs, sustaining capital expenditures, sustaining leases, general and administrative costs, minesite exploration and evaluation costs, royalties and production taxes, reclamation cost accretion and amortization and write-downs taken on inventory to net realizable value.
Barrick will provide a full reconciliation of these non-GAAP financial measures when the Company reports its full year and fourth quarter results on
Cautionary Statements Regarding Preliminary Fourth Quarter and Full Year Production, Sales and Costs for 2023, and Forward-Looking Information
Barrick cautions that, whether or not expressly stated, all full year and fourth quarter figures contained in this press release including, without limitation, production levels, sales and associated costs are preliminary, and reflect our expected full year and fourth quarter results as of the date of this press release. Actual reported full year and fourth quarter production levels, sales and associated costs are subject to management’s final review, as well as review by the Company’s independent accounting firm, and may vary significantly from those expectations because of a number of factors, including, without limitation, additional or revised information, and changes in accounting standards or policies, or in how those standards are applied. Barrick will provide additional discussion and analysis and other important information about its full year and fourth quarter production levels, sales and associated costs when it reports actual results on
Finally, Barrick cautions that this press release contains forward-looking statements with respect to: (i) Barrick’s production; and (ii) costs per ounce for gold and per pound for copper.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known or unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information.
Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; the timeline for the resumption of mining and processing operations and anticipated production from Porgera; risks associated with projects in the early stages of evaluation, and for which additional engineering and other analysis is required; disruption of supply routes which may cause delays in construction and mining activities; whether benefits expected from recent transactions are realized; quantities or grades of reserves will be diminished, and that resources may not be converted to reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges, tailings dam and storage facilities failures, and disruptions in the maintenance or provision of required infrastructure and information technology systems; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; failure to comply with environmental and health and safety laws and regulations; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; timing of, receipt of, or failure to comply with, necessary permits and approvals; non-renewal of key licenses by governmental authorities; uncertainty whether some or all of targeted investments and projects will meet the Company’s capital allocation objectives and internal hurdle rate; the impact of inflation, including global inflationary pressures driven by supply chain disruptions and global energy cost increases following the invasion of
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Source:
2024 GlobeNewswire, Inc., source