Barrick Gold Corporation made $743 million as net cash balance in Q1 2022, reflecting a strong positive cash flow from the company’s operations, the continuing sale of non-core assets, and its share of a further $0.6 billion in cash distributions by Kibali.
This strong cash position led to the announcement of a $0.20 per share quarterly dividend, the first to include a $0.10 per share performance component in line with its new dividend policy.
“Since agreement on the reparation of revenue from Kibali was reached with Democratic Republic of Congo (DRC) last year, Kibali has delivered $1.2 billion (on a 100% basis) in the form of dividends and debt repayments, inclusive of distributions received subsequent to March 31, 2022.”
Mark Bristow
President and Chief Executive Mark Bristow said the Company’s Q1 2022 performance “was a softer quarter” comparing with Q4 2021, which included a record-breaking performance from Nevada Gold Mines. With much optimism of a stronger performance in the second quarter of the year, Barrick remains on track to meet its 2022 production guidance, Bristow said.
According to the company, highlights of the quarter included the framework agreement with Pakistan on restarting the Reko-Diq copper-gold project. “Bristow is scheduled to meet the country’s new Prime Minister later this month to review progress,” according to the company’s press release.
Progress in other Projects
Also significant was the progress made in securing a new tailings storage facility for Pueblo Viejo project in the Dominican Republic, Bristow said. The project is designed to unlock approximately 9 million ounces of measured and indicated resources and convert them into additional proven and probable reserves, extending the mine’s life by more than 20 years.
“Barrick controls what are unquestionably the mining industry’s best gold assets as well as some substantial copper mines. Reko Diq is one of the largest undeveloped copper-gold porphyry deposits in the world, and if the conditions to closing are satisfied, it will be a very significant addition to this portfolio, even before it goes into production, by boosting reserves and resources as the updated feasibility study unfolds.
“In addition to its size and quality, Barrick’s asset base is distinguished by our continued success in more than replacing the reserves depleted by mining through brownfields exploration. At the same time, we continue to hunt for new Tier One assets across our expanding global footprint. The past quarter again produced promising results from all regions, with significant new potential identified in Nevada, Argentina and Africa’s Loulo district.”
Mark Bristow
Barrick’s latest annual sustainability Report also highlights its coordinated and integrated approach to Environmental, Social and Governance (ESG). This is based on the company’s belief that the challenges of poverty, climate change and biodiversity are intertwined and should be addressed holistically.
The report notes that last year Barrick spent $5.5 billion with host country suppliers, equating to 81 per cent of its global procurement expenditure. Host country nationals accounted for 96 per cent of its total workforce and 78 per cent of its management, and the drive to employ more women is succeeding.
Notably, Barrick has spent $850 million on renewable energy and greenhouse gas (GHG) emissions reduction projects. These are outlined in the report in an updated GHG emissions reduction roadmap leading to a Net Zero target by 2050.
Barrick, for the first time, disclosed its Scope 3 emissions and Scope 3 roadmap to engage and assist its suppliers with their GHG emissions reductions.
“Sustainability has long been an integral part of the way Barrick does business and our commitment to its effective management is key to our goal of building the world’s most valued gold and copper mining company.”
Mark Bristow
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