Barrick: Disciplined execution drives strong operational performance

Barrick started the year with another strong quarter. Building on momentum from Q4, the company operated safely and outperformed its plan on both gold production and costs. Its performance allowed to capture even more of the higher gold price, producing significantly higher earnings and cash flow compared to a year ago. Its growth pipeline advanced, with good progress at Lumwana and Fourmile.

• Q1 gold production of 719,000 ounces beats guidance of 640,000–680,000 ounces, driven by strong performances at NGM and Veladero, and the ramp-up at Loulo-Gounkoto; copper production of 49,000 tonnes in line with plan.
• Gold costs per ounce were better than plan, driven by efficiencies in mining and processing: gold COS were $1,922 per ounce, TCC were $1,327 per ounce and AISC were $1,708 per ounce.
• Operating cash flow of $2.55 billion increased 111% year-on-year, attributable operating cash flow of $1.97 billion increased 89% year-on-year, and attributable free cash flow of $1.21 billion was up 195% year-on-year.
• Strong earnings supported by a higher realized gold price: net earnings per share of $0.96 rose 256% year-on-year, and adjusted net earnings per share of $0.98 rose 180% year-on-year.
• Gold production expected to increase sequentially throughout the year with Q2 gold production of 730,000–770,000 ounces; full year production and cost guidance remains unchanged.
• North American Barrick IPO progressing as planned, targeting completion by year end.
• $0.175 per share quarterly dividend declared and new $3.0 billion share buyback program announced.

Mark Hill, President and Chief Executive Officer, said: “Our focus for the year is clear: continue to improve safety performance, deliver on production and cost guidance, advance our growth projects on time and on budget, and execute the North American Barrick IPO to unlock further shareholder value.”