Bcm Resources Corp press release
Barrick Delivers Strong Year-End Performance While Advancing Key Growth Projects
TSXV - TSX Venture Exchange · Copper · Gold · Molybdenum · Silver · Lead · Zinc · Bismuth · Canada
Fourth Quarter and Full Year 2024 Results All amounts expressed in US dollars
TORONTO, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) delivered a strong performance in Q4, increasing gold production by 15% and copper production by 33% over Q3 to meet its annual guidance for the year. Additionally, gold cost of sales 1 and total cash costs 2 for the quarter were reduced by 3% and 5%, respectively.
The results for the year, released today, report a 69% increase in net earnings to $2.14 billion, a 51% increase in adjusted net earnings 3 to $2.21 billion and a 30% rise in attributable EBITDA 4 to $5.19 billion for 2024 — the highest in over a decade. Year-on-year operating cash flow increased 20% to $4.49 billion and free cash flow 5 more than doubled to $1.32 billion, driven by the stronger earnings. A quarterly dividend of $0.10 per share was maintained, bringing the total annual dividend paid to shareholders to $696 million, and a further $498 million was returned in buying back shares.
“Barrick remains focused on sustainable value creation for all our stakeholders and as our results today clearly demonstrate, we have the asset quality, balance sheet strength and organic growth projects to deliver on our vision well into the future,” said Barrick president and chief executive Mark Bristow.
Barrick’s North America and Africa and Middle East operations met their production guidance for the year, while in the Latin America and Asia Pacific region, a slower-than-expected ramp up at Pueblo Viejo meant the region delivered slightly below guidance despite a stellar performance from Veladero. Pueblo Viejo is planning further upgrades in 2025 to continue the improvement in throughput and recovery, starting with a planned 35-day shutdown in the first quarter of the year.
“During the fourth quarter, we made steady progress in ramping up operations at Pueblo Viejo, improving recovery, despite lower production on the back of a slight decrease in grade. At Veladero and Nevada Gold Mines, we boosted production and we closed the gaps at Kibali while strengthening the management team there. Additionally, we completed two major feasibility studies to advance the transformational Lumwana and Reko Diq projects, and also significantly increased our reserves and resources,” said Bristow.
Barrick continued its strong track record of reserve additions, growing attributable proven and probable gold mineral reserves by 17.4 million ounces 18 (23%) before 2024 depletion. Attributable proven and probable gold mineral reserves now stand at 89 million ounces at 0.99g/t 19 , increasing from 77 million ounces at 1.65g/t 20 in 2023. Copper mineral reserves grew by 224% year-on-year on an attributable basis, at more than 13% higher grade, to 18 million tonnes of copper at 0.45% 19 , from 5.6 million tonnes of copper at 0.39% in 2023. 20 This resulted from the completion of the Lumwana and Reko Diq feasibility studies — affirming both projects as potential Tier One 21 copper assets. Additionally, the wholly-owned Fourmile project is advancing to prefeasibility following a successful 2024 drilling program.
For 2025, attributable gold production is expected to be in the range of 3.15–3.5 million ounces, excluding production from Loulo-Gounkoto while it is temporarily suspended. Attributable copper production for 2025 is projected to increase from 195,000 tonnes in 2024 to 200,000–230,000 tonnes, driven by increased production at Lumwana.
Bristow said Barrick remains open to a constructive engagement with the Malian government and he continues to believe that a mutually beneficial solution can be found.
“While ongoing issues in Mali remain an investor concern, which have overly weighed on the share price, Barrick’s fundamental value proposition has never been stronger. As such, we have capitalized on the undervaluation of our shares by increasing our repurchases, and we have renewed our $1 billion share buyback program for the upcoming year,” said Bristow.
“Our ability to self-fund our growth pipeline is a major strength and, unlike many of our peers, we won't need costly mergers and acquisitions or to issue additional equity to grow production. Our focus on a quality Tier One 21 asset portfolio, continuous talent development, growth potential, robust balance sheet and unparalleled track record in replacing the reserves we mine, are the key reasons why we should be the go-to stock,” he said.
Key Performance Indicators
Best Assets…
Replaced depleted gold reserves at existing mines and added 13 million ounces attributable proven and probable reserves from Reko Diq 6 Significant increases in production across all regions deliver higher Q4 gold production Full year attributable gold production of 3.91 million ounces, in line with annual guidance Quarter-on-quarter improvement at Pueblo Viejo across flotation, CIL2 circuit stability and recovery step up Veladero delivers best production in last five years and successfully commissions Phase 7B leach pad Increased Q4 copper production ensures delivery at midpoint of annual guidance Engineering partners appointed for Lumwana and Reko Diq and on track with early works design and long lead item fabrication Pueblo Viejo Naranjo TSF feasibility completed and drilling ongoing to validate design New decline development commences at Bulyanhulu to access new reserves and increase mining flexibility Significant drilling results at NGM, Reko Diq, Loulo, Tanzania and Kibali confirm quality pipeline of targets with progress on early-stage targets across Barrick’s expanding greenfields portfolio
Key Growth Projects…
Reko Diq and Lumwana Feasibility Studies add 13Mt of new attributable copper reserves (73Moz of gold equivalent ounces) 6,7,8 Barrick’s Fourmile proceeds to prefeasibility study on back of successful drilling program Lumwana expansion permitted and Reko Diq ESIA progresses
Leader in Sustainability…
48% reduction in LTIFR 9 and 20% reduction in TRIFR 9 year-on-year Africa & Middle East region has again achieved its best Malaria Incident Rate (MIR) on record, lowering the MIR by a further 51% from 2023 824 hectares of concurrent rehabilitation completed in 2024 – exceeding target by 13%
Delivering Value…
20% increase in operating cash flow for 2024 to $4.5 billion Free cash flow 5 for 2024 more than double 2023 at $1.3 billion Net earnings per share of $0.57 and adjusted net earnings per share 3 of $0.46 for the quarter Q4 share buyback increased to $354 million – brings total to $498 million for the year $0.10 per share dividend declared with $1.2 billion in total shareholder returns in 2024
Financial and Operating Highlights
| Financial Results | Q4 2024 | Q3 2024 | 2024 | 2023 | | Realized gold price 10,11 ($ per ounce) | 2,657 | 2,494 | 2,397 | 1,948 | | Realized copper price 10,11 ($ per pound) | 3.96 | 4.27 | 4.15 | 3.85 | | Net earnings 12 ($ millions) | 996 | 483 | 2,144 | 1,272 | | Adjusted net earnings 3 ($ millions) | 794 | 529 | 2,213 | 1,467 | | Attributable EBITDA 4 ($ millions) | 1,697 | 1,292 | 5,185 | 3,987 | | Net cash provided by operating activities ($ millions) | 1,392 | 1,180 | 4,491 | 3,732 | | Free cash flow 5 ($ millions) | 501 | 444 | 1,317 | 646 | | Net earnings per share ($) | 0.57 | 0.28 | 1.22 | 0.72 | | Adjusted net earnings per share 3 ($) | 0.46 | 0.30 | 1.26 | 0.84 | | Total attributable capital expenditures 13,14 ($ millions) | 758 | 583 | 2,607 | 2,363 | | Financial Position | As at 12/31/24 | As at 9/30/24 | As at 12/31/24 | As at 12/31/23 | | Debt (current and long-term) ($ millions) | 4,729 | 4,725 | 4,729 | 4,726 | | Cash and equivalents ($ millions) | 4,074 | 4,225 | 4,074 | 4,148 | | Debt, net of cash ($ millions) | 655 | 500 | 655 | 578 | | Operating Results | Q4 2024 | Q3 2024 | 2024 | 2023 | | Gold | | | | | | Production 10 (thousands of ounces) | 1,080 | 943 | 3,911 | 4,054 | | Cost of sales 1,10 ($ per ounce) | 1,428 | 1,472 | 1,442 | 1,334 | | Total cash costs 2,10 ($ per ounce) | 1,046 | 1,104 | 1,065 | 960 | | All-in sustaining costs 2,10 ($ per ounce) | 1,451 | 1,507 | 1,484 | 1,335 | | Copper | | | | | | Production 10,15 (thousands of tonnes) | 64 | 48 | 195 | 191 | | Cost of sales 10,16 ($ per pound) | 2.62 | 3.23 | 2.99 | 2.90 | | C1 cash costs 10,17 ($ per pound) | 2.04 | 2.49 | 2.26 | 2.28 | | All-in sustaining costs 10,17 ($ per pound) | 3.07 | 3.57 | 3.45 | 3.21 |
Q4 2024 Results Presentation
Mark Bristow will host a live presentation of the results today at 11:00 EST, with an interactive webinar linked to a conference call. Participants will be able to ask questions.
Go to the webinar US/Canada (toll-free), 1 844 763 8274 UK (toll), +44 20 3795 9972 International (toll), +1 647 484 8814
The Q4 presentation materials will be available on Barrick’s website at www.barrick.com and the webinar will remain on the website for later viewing.
Barrick Reports Share Repurchases and Declares Q4 Dividend
Barrick today announced the declaration of a dividend of $0.10 per share for the fourth quarter of 2024. The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of 2022.
The Q4 2024 dividend will be paid on March 17, 2025 to shareholders of record at the close of business on February 28, 2025.
In addition to the quarterly dividends, Barrick repurchased 28.675 million shares during the year under the share buyback program that was announced in February 2024, including 21 million shares during Q4 2024.
“The strong performance of our business has allowed us to provide significant returns to shareholders in 2024 through the combination of dividends and share buybacks, especially in the fourth quarter, at a compelling valuation. At the same time, Barrick continues to maintain one of the strongest balance sheets in the industry ensuring adequate liquidity to invest in our significant growth projects,” said senior executive vice-president and chief financial officer Graham Shuttleworth.
Barrick Announces New Share Buyback Program
Barrick announced today that it plans to undertake a new share repurchase program for the buyback of its common shares.
Barrick’s Board of Directors has authorized a new program for the repurchase of up to $1.0 billion of the Company’s outstanding common shares over the next 12 months at prevailing market prices in accordance with applicable law. In connection with the new share repurchase program, Barrick has terminated the share repurchase program announced by the Company on February 14, 2024. The Company repurchased $498 million in common shares under its 2024 share repurchase program.
Under the program, repurchases can be made from time to time through published markets in the United States such as the New York Stock Exchange using a variety of methods, including open market purchases, as well as by any other means permitted under the rules of the U.S. Securities and Exchange Commission and other applicable legal requirements.
Barrick believes that, from time to time, the market price of its common shares trade at prices that may not adequately reflect their underlying value. The actual number of shares that may be purchased, if any, and the timing of such purchases, will be determined by Barrick based on a number of factors, including the Company’s financial performance, the availability of cash flows, and the consideration of other uses of cash, including capital investment opportunities, returns to shareholders, and debt reduction.
The repurchase program does not obligate the Company to acquire any particular number of common shares, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.
Barrick Grows Gold and Copper Reserves Significantly, Setting It Apart From Its Peers as It Positions for Growth
Barrick grew attributable proven and probable gold mineral reserves by 17.4 million ounces 18 (23%) before 2024 depletion. Attributable proven and probable mineral reserves now stand at 89 million ounces at 0.99g/t 19 , increasing from 77 million ounces at 1.65g/t 20 in 2023.
The year-on-year change was led by the conversion of Reko Diq resources to mineral reserves, adding 13 million ounces of gold at 0.28g/t 19 on an attributable basis, following the completion of the feasibility study. Significantly, before the addition of Reko Diq, Barrick delivered a fourth consecutive year of replacing annual depletion at a 4% higher grade, continuing to demonstrate the results of an unremitting focus on asset quality and further extending the life of our existing operations.
Since the end of 2019, Barrick has replaced more than 180% 18 of the company’s depleted gold reserves, adding almost 46 million ounces 18 of attributable proven and probable reserves (77 million ounces 18 of proven and probable reserves on a 100% basis) across Barrick-managed assets.
Attributable measured and indicated gold resources for 2024 remain consistent, at 180 million ounces at 1.06g/t 19 , with a further 41 million ounces at 0.9g/t 19 of inferred resources, up 5% from 2023.
At the same time, copper mineral reserves grew by 224% year-on-year on an attributable basis, at more than 13% higher grade to 18 million tonnes of copper at 0.45% 19 , from 5.6 million tonnes of copper at 0.39% in 2023. 20 This resulted from the completion of the Lumwana and Reko Diq feasibility studies affirming both projects as Tier One 21 Copper Assets. The Lumwana Super Pit Expansion feasibility study added 5.5Mt of Cu reserves to the project, resulting in proven and probable copper reserves of 8.3 million tonnes of copper at 0.52%. 19 The Reko Diq feasibility study added 7.3 million tonnes of copper at 0.48% 6 to attributable copper reserves. This represents an addition of more than 20 million tonnes 19 of proven and probable copper reserves on a 100% basis since 2023.
Attributable measured and indicated copper resources for 2024 stand at 24 million tonnes 19 of copper at 0.39%, with a further 3.9Mt 19 of copper at 0.3% of inferred resources, reflecting the conversion and upgrade of copper mineral resources at Lumwana.
For 2024, mineral reserves are based on an updated gold price assumption of $1,400/oz 22 and a consistent copper price of $3.00/lb. 22 Mineral resources are reported inclusive of reserves and for 2024 are based on an updated gold price of $1,900/oz 22 and a consistent copper price of $4.00/lb. 22
President and chief executive Mark Bristow said Barrick’s strategy of investing in organic growth through exploration and mineral resource management has set the group apart from its peers within the industry, positioning Barrick as a champion for value creation as we continue to grow our production profile organically.
“In order for our industry to help build a better world, we have to invest in our own future, with transformational projects like the Lumwana Super Pit and Pueblo Viejo expansions, Reko Diq and Fourmile. Barrick’s vision for these projects extends beyond mining, ensuring the benefits of these investments provide multi-generational benefits to our host countries and local communities through the development of local service provider partnerships and investment in the sustainability of our operating environments,” said Bristow.
Mineral Resource Management and Evaluation Executive Simon Bottoms said that since the end of 2019, Barrick has successfully added 111 million ounces 18 of attributable gold equivalent reserves at a cost of approximately $10 per ounce 23 , demonstrating the value proposition of our strategy.
“The company's reserve prices of $1,400/oz for gold 22 and $3.00/lb for copper 22 are designed to extract the optimum value from our geologically defined orebodies whilst delivering the highest value, demonstrating the quality differentiation of our Tier One 21 assets. This approach is complemented by our reserve replacement strategy, where we aim to add value by delineating ore body extensions and satellites at our long-term reserve prices rather than diluting the quality of our reserves through lifting reserve prices beyond the relative levels of cost inflation,” said Bottoms.
Gold mineral reserves in the Africa & Middle East region, after annual depletion, grew to 19 million ounces at 3.35g/t 19 in 2024 from 18.8 million ounces at 3.24g/t 20 in 2023. This was predominantly driven by both Bulyanhulu and Loulo-Gounkoto, with extensions of the high-grade Reef 2 and Yalea underground orebodies respectively, combined with growth of the Faraba open pit. Overall, this delivered a 2.3 million ounce 19 increase in attributable proven and probable reserves across the region, before depletion. North Mara also contributed to the strong results through the extension of the Gokona underground and Gena open pit. At Kibali, the ongoing conversion drilling in the 9000 and 11000 lodes in KCD underground replaced 98% of depletion, with ongoing development to establish further underground drill platforms for 2025.
The Latin America & Asia Pacific region, led by Pueblo Viejo, replaced 115% of the regional 2024 gold reserve depletion before the addition of Reko Diq, which added 0.78 million ounces 19 to attributable proven and probable reserves before depletion as a result of additional pit design pushbacks unlocked by the additional TSF capacity in the new Naranjo facility. Porgera grew attributable gold reserves by 22% year-on-year with the successful conversion of the open pit Link cutback adjacent to the West Wall cutback.
In North America, the ongoing growth programs at Turquoise Ridge, Leeville Underground in Carlin and the Reona cut-back in Phoenix, added 1.54 million ounces 19 of gold to proven and probable reserves on an attributable basis before annual depletion, which were partially offset by reductions in Cortez driven by metallurgical model updates in Crossroads and Robertson. This resulted in attributable proven and probable mineral reserves for the region of 30 million ounces at 2.71g/t 19 , representing a more than 10% increase in the grade year-over-year (2.45g/t in 2023) as a result of the high-grade growth additions and reductions of low-grade at Cortez. At the same time, attributable gold measured and indicated mineral resources for the region now stands at 66 million ounces at 2.18g/t 19 , due to the removal of Long Canyon mineral resources, as the site is planned to progress into full closure during 2025. Meanwhile, attributable inferred gold mineral resources for the region grew to 21 million ounces at 3.3 g/t 19 , driven by Fourmile’s mineral resource 24 growth in the southernmost portion of the orebody immediately adjacent to the existing Goldrush mine. Looking forward to 2025, Barrick plans to commence prefeasibility-study drilling at the end of the first quarter of 2025 which will target continued extension of the mineral resource along strike to the north, while also completing the foundational studies for the planned Bullion Hill northern access portal.
Transforming Lumwana Into a Top 25 Copper Producer
Barrick has completed a comprehensive feasibility study for the Super Pit Expansion at Lumwana in Zambia 25 , transforming the mine into a long-life, high yielding, Top 25 copper producer and Tier One 21 copper mine, capable of contending with the volatility of the copper demand cycles.
The expansion will substantially increase the mine’s production capacity, extending its operational life by 17 years to 2057, and doubling the capacity of the processing plant from 27 million tonnes per annum (Mtpa) to a peak design of 54Mtpa — achieving an average copper output of 240,000 tonnes annually over the life of the mine, from a planned 52Mtpa process feed. Based on the feasibility study, the total project capital cost is estimated to be $2 billion.
Construction is set to begin in 2025, with the project promising substantial improvements in operational efficiency. The expansion has significantly grown Lumwana’s mineral reserves, increasing proven and probable copper reserves from 510 million tonnes at 0.58% for 3.0 million tonnes of contained copper as of year-end 2023 to 1,600 million tonnes at 0.52% for 8.3 million tonnes of contained copper as of year-end 2024. 7 Notably, this expansion will replace the total copper produced by Lumwana since 2009 by over 400%. 25