Barrick Gold sees long-term output drop, promising projects
(Adds details on projects, copper forecast, analyst comment)
By Susan Taylor
TORONTO, Feb 22 (Reuters) - Barrick Gold on Thursday predicted ongoing gold production declines in the long term, positioning the miner to lose its status as the world's biggest bullion producer, but it said key projects could boost annual output by 1 million ounces.
In an investor update, Barrick also said Chief Operating Officer Richard Williams is stepping down to take on a new role focused on talks with Tanzania for the company's troubled Acacia Mining unit.
Senior Vice President Greg Walker will be responsible for operations, Barrick said. The Toronto-based miner told Reuters the COO title does not exist at this time.
Barrick sees annual production of more than 4 million ounces of gold between 2023 and 2027, a steady view that contrasts with last week's market-rattling outlook for lower output and higher costs in the near term.
"It provides significant clarity on Barrick's long-term production outlook, which looks more stable than some investors may have feared," Scotiabank analyst Tanya Jakusconek said in a report.
Barrick expects 2018 output of 4.5-5 million ounces of gold and annual production of 4.2-4.6 million ounces from 2019 to 2022.
Rival Newmont Mining expects to exceed that forecast, projecting 2018 production of 4.9-5.4 million ounces of gold and 4.6-5.1 million ounces annually through 2022. [nL4N1QC3FJ[
Barrick said four projects could add more than 1 million ounces to annual output starting in 2021, including three Nevada developments approved to proceed.
Notably, the $300-$325 million Turquoise Ridge project will nearly double annual output, to more than 500,000 ounces, said Barrick, which owns 75 percent of the mine. Newmont owns the remaining 25 percent.
Initial production from a new shaft at the mine, now designated a core Barrick operation, is expected in 2022.
The long-range forecast reflects potential gains from the Cortez Deep South, Goldrush and Turquoise Ridge mines and Robertson property in Nevada; Lagunas Norte in Peru; and Pueblo Viejo in the Dominican Republic.
It does not include any contribution from Barrick's large-scale 'greenfield' projects: Alturas, Donlin Gold, a 50-percent stake in Norte Abierto, or Pascua-Lama.
Pascua-Lama, a long-stalled project straddling the borders of Chile and Argentina, contains 21.3 million ounces of measured gold resources. Barrick's 50-percent share of Alaska's Donlin project, co-owned with NovaGold, contains 19.5 million ounces of gold resources.
Three copper mines represent additional cash flow and value, Barrick said, with assets expected to produce 385-450 million pounds of copper in 2018. (Reporting by Susan Taylor; Editing by Bernadette Baum and Paul Simao)
