Barrick keeps tight focus on value creation and growth

TORONTO – Barrick Gold Corporation has reported increased earnings and production for its second quarter, in line with guidance, and said the Company was on track for a strong second half of the year.

Net earnings1 were up 25% and the attributable EBITDA margin2 was up 17% quarter on quarter to 48% with strong operating cash flows of $1.16 billion and a material increase in free cash flow3 to $340 million.

President and chief executive Mark Bristow said while steering the Company towards the achievement of its 2024 guidance, management was also maintaining its focus on value creation and growth.

Key projects designed to boost production and expand the asset base include the recently permitted Goldrush mine in Nevada which is ramping up to annual production in excess of 400,000 ounces by 20285 while the adjacent Fourmile project, 100% owned by Barrick, is shaping up as a new Tier One6 mine with a potential gold production in excess of 500,000 ounces per annum over more than two decades.7 In the Dominican Republic, Pueblo Viejo is completing an expansion project designed to increase gold production to more than 800,000 ounces beyond 2040.8

“On the copper side of the business, two world-class projects are set to deliver into a rising price and demand market. In Zambia, the Lumwana super pit expansion will increase the mine’s production from 130,000 tonnes to 240,000 tonnes per annum19 while the Reko Diq project in Pakistan is targeting 400,000 tonnes of copper and 500,000 ounces of gold per annum20,” Bristow said.

“The strong cash flows from our operations will fund these and other developments while our robust balance sheet will support the forecast growth and dividends. In the meantime, Barrick’s unparalleled ability to replace reserve depletion organically will continue to enhance the scope and quality of our existing asset base.”

During the past quarter Barrick launched what is believed to be the industry’s first comprehensive biodiversity assessment tool. It was produced in collaboration with external experts and incorporates local knowledge and priorities to establish baselines and identify residual impacts. The development of the tool is another milestone in achieving Barrick’s differentiated sustainability strategy aimed at making a tangible difference on the ground, where it matters most.

“We are using this tool at all our sites which allows us to quantify both positive and negative impacts on biodiversity across our operations worldwide. This informed approach will guide targeted actions to take our already established rehabilitation and key biodiversity conservation initiatives to another level,” Bristow said.

Key Performance Indicators

• In line Q2 performance positions Barrick to deliver on gold production guidance for 2024
• Net earnings1 up 25% on Q1 and attributable EBITDA margin2 up 17% to 48%
• Higher production and lower costs expected in H2
• Pueblo Viejo production growth and cost improvement expected in H2 driven by recovery optimization
• Porgera delivers successful plant completion test; ramp-up to capacity remains on track for 2024
• Lower costs at Lumwana combined with higher prices drive 124% increase in group’s quarterly copper margins18
• Stronger H2 at Lumwana to drive delivery on group copper production guidance for 2024
• Reko Diq and Lumwana feasibility studies on track for completion by year-end
• Ten rigs now drilling extensive definition program at Fourmile; initial results confirm modelled extensions to mineralization, validating the geological model
• Results from disciplined brownfields exploration on track to replace annual depletion and identify further upside opportunities around Barrick’s operations in North America, Latin America and Africa & Middle East