All amounts expressed in US dollars
- Barrick reported adjusted net earnings of $127 million ($0.11 per share)1, and a net loss of $83 million ($0.07 per share), in the first quarter.
- The company generated $181 million in free cash flow1 in the first quarter, marking four consecutive quarters of positive free cash flow. First quarter EBITDA was $696 million1.
- Gold production in the first quarter was 1.28 million ounces at all-in sustaining costs (AISC) of $706 per ounce1.
- We reduced all-in sustaining costs by 24 percent and cash costs by 14 percent compared to the first quarter of 2015, reflecting the impact of ongoing operating and capital cost savings initiatives as well as lower fuel prices and foreign exchange gains.
- All-in sustaining cost guidance for 2016 has been reduced to $760-$810 per ounce, down from our original guidance of $775-$825 per ounce. We continue to expect gold production of 5.0-5.5 million ounces for the year.
- We have reduced total debt by $842 million year-to-date, and we remain on track to achieve our $2 billion debt reduction target for the year.
- During the quarter, we established a Growth Group, comprised of Rob Krcmarov, Catherine Raw and Kevin Thomson, to develop and advance strategies that will grow free cash flow per share over the long-term.
Barrick Gold Corporation (ABX.TO)(ABX.TO) (Barrick or the company) today reported adjusted net earnings of $127 million ($0.11 per share) for the first quarter, and a net loss of $83 million ($0.07 per share). The net loss for the quarter primarily reflects the impact of one-time foreign currency losses. First quarter free cash flow was $181 million and EBITDA was $696 million.
Production in the first quarter was 1.28 million ounces of gold at all-in sustaining costs of $706 per ounce. Cash costs were $553 per ounce1. We continue to expect full-year production of 5.0-5.5 million ounces of gold at lower all-in sustaining costs of $760-$810 per ounce.
Our operations performed well in the first quarter as we began to deliver on our 2016 priorities, including progress on lowering our free cash flow breakeven gold price to $1,000 per ounce, reducing total debt by $2 billion, implementing Best-in-Class to improve efficiency and productivity across all operations, and maintaining strict capital discipline.
After a year of renewal that laid the foundation to create long-term value for our owners, every action we take is focused on one overarching objective: growing free cash flow per share. We are doing this through the pursuit of three strategic goals. The first is a profound commitment to building partnerships of real depth and trust with host governments, local communities, NGOs, indigenous people, and others. The second goal is to produce the leading margins in the industry by operating in a way that is gold-price agnostic. Whatever the gold price, we are constantly pushing ourselves to reduce our costs by being first in productivity and efficiency. That means a continuous, relentless cycle of improvement and innovation, such that we should weather gold price volatility better than any other miner, while growing free cash flow per share over the long-term. The third goal is superior portfolio management. We measure our production in quality, not quantity. While we produce fewer ounces than we have in recent years, we are generating significantly more free cash flow per share. We will manage our portfolio to grow our cash margin over growing ounces, and we will assess existing and new opportunities, both internal and external, with that goal in mind.
RESTORING A STRONG BALANCE SHEET
Strengthening our balance sheet remains one of our top priorities. In 2016, we intend to reduce our total debt by at least $2 billion by drawing on our existing cash balance, delivering free cash flow from operations, selling additional non-core assets, and creating new joint ventures and partnerships.
So far this year, we have reduced our total debt by $842 million, representing 42 percent of our debt reduction target for the year. Since the start of 2015, we have reduced our total debt by $3.95 billion, or roughly 30 percent. This is expected to reduce our interest payments by approximately $180 million on an annualized basis.
The company's liquidity position is strong and continues to improve, underpinned by stronger free cash flow generation across the business, and modest near-term debt repayment obligations. At the end of the first quarter, Barrick had a consolidated cash balance of approximately $2.3 billion2. The company has less than $200 million in debt due before 2018, and about $5 billion of our outstanding debt of $9.1 billion does not mature until after 20323.
In the medium term, we aim to reduce our debt to below $5 billion. Philosophically, our goal is to have no debt at all. We will continue to pursue debt reduction with discipline, taking only those actions that make sense for the business, on terms we consider favorable to our shareholders.
Free cash flow for the first quarter was $181 million, marking four consecutive quarters of positive free cash flow after a prolonged period of negative free cash flow. This reflects our driving focus on maximizing free cash flow through greater capital discipline, improved operational efficiency, and stronger cost management.
The company generated $696 million of EBITDA in the first quarter compared to $793 million in the prior year period. First quarter adjusted net earnings were $127 million ($0.11 per share) compared to $62 million ($0.05 per share) in the prior year period. Higher adjusted net earnings compared to the prior-year period were driven by lower cash costs, higher sales volumes (excluding the impact of divested sites) as well as lower exploration and evaluation costs, in part reflecting lower spending at Pascua-Lama. The net loss for the quarter was $83 million ($0.07 per share) compared to net earnings of $57 million ($0.05 per share) in the prior year period. Lower net earnings primarily reflect the impact of lower production as a result of asset sales completed in the second half of 2015 and the first quarter of 2016, combined with lower realized prices.
Significant adjusting items (net of tax and non-controlling interest effects) in first quarter 2016 include:
- $119 million in foreign currency translation losses, including deferred currency translation losses released as a result of the disposal and reorganization of certain Australian entities, and unrealized foreign currency translation losses primarily related to the devaluation of the Argentine Peso on VAT receivables;
- $26 million in losses on the extinguishment of debt; and
- $17 million adjustment reflecting the impact of a decrease in the discount rate used to calculate the provision for environment remediation at our closed mines.
Despite lower gold prices, operating cash flow was $451 million compared to $316 million in the prior year period, reflecting the impact of lower energy and fuel prices, as well as the impact of reduced labor and contracting costs, and other operational efficiencies driven by Best-in-Class.
Our over-arching objective as a business is to grow our free cash flow per share in any foreseeable gold price environment. In support of this objective, we intend to achieve and maintain industry-leading margins by improving the productivity and efficiency of our operations. This means a continuous, relentless cycle of improvement and innovation underpinned by our recently launched Best-in-Class program. Our aspiration is to achieve all-in sustaining costs below $700 per ounce by 2019.
We are making progress. In the first quarter of 2016, Barrick produced 1.28 million ounces of gold at all-in sustaining costs of $706 per ounce, compared to 1.39 million ounces at all-in sustaining costs of $927 per ounce in the prior year period. When excluding in the impact of divested mines, gold production for the quarter actually increased, driven by higher production at Cortez, Goldstrike, and Pueblo Viejo.
Cash costs were $553 per ounce in the first quarter of 2016, compared to $642 per ounce in the first quarter of 2015. This represents a 24 percent reduction in all-in sustaining costs, and a 14 percent reduction in cash costs, compared to first quarter of 2015. These savings were driven by the impact of ongoing cost savings initiatives, including lower sustaining capital spending, and lower operating costs. First quarter costs also benefited from lower fuel prices and foreign exchange gains, primarily associated with the devaluation of the Argentine peso.
We continue to expect full-year gold production of 5.0-5.5 million ounces. We have reduced our all-in sustaining cost guidance for 2016 to $760-$810 per ounce, down from our original guidance of $775-$825 per ounce, reflecting the impact of lower fuel costs, favorable foreign exchange rates, and early Best-in-Class productivity and efficiency initiatives. We have also lowered the top end of our capital expenditure guidance, now expected to be $1.35-$1.55 billion, adjusted from our original guidance of $1.35-$1.65 billion.
As we continue to embed Best-in-Class across the portfolio, we expect to identify additional savings opportunities over the course of the year.
|Gold||First Quarter 2016||Current 2016 Guidance||Original 2016 Guidance|
|Production (000s of ounces)(4)||1,280||5,000-5,500||5,000-5,500|
|AISC ($per ounce)||706||760-810||775-825|
|Cash costs ($per ounce)||553||540-580||550-590|
|Production (millions of pounds)(4)||111||370-410||370-410|
|AISC ($per pound)||1.97||1.95-2.25||2.05-2.35|
|C1 cash costs ($per pound)(1)||1.47||1.35-1.65||1.45-1.75|
|Total Capital Expenditures ($millions)(5)||215||1,350-1,550||1,350-1,650|
The Cortez mine produced 247,000 ounces of gold in the first quarter at lower all-in sustaining costs of $469 per ounce. Lower costs primarily reflect the impact of higher sales volumes, combined with lower cash costs and lower sustaining capital spend, in part driven by progress on Best-in-Class initiatives. We continue to anticipate 2016 production of 900,000-1,000,000 ounces of gold. All-in sustaining cost guidance for the year has been reduced to $580-$640 per ounce, down from $640-$710 per ounce.
Priority Best-in-Class initiatives in execution at Cortez for 2016 are focused on reducing open pit mining costs by improving the productivity and efficiency of open pit operations. This includes optimizing haul truck loading, and increasing haul truck availability, by compressing preventive maintenance downtime, improving handover times, and reducing unplanned maintenance. The mine is also targeting a reduction in long-duration shovel maintenance times to further improve open pit mining productivity.
Following the completion of prefeasibility studies in late 2015, we have moved two significant growth projects in the Cortez district to the feasibility study phase. This includes a feasibility study for expanded underground mining in the Deep South zone, below currently permitted areas of the Cortez Hills underground mine(6). The project has the potential to contribute average underground production of more than 300,000 ounces per year between 2023 and 2027, at average all-in sustaining costs of approximately $580 per ounce. Initial capital costs for Deep South are estimated to be $153 million. Barrick is also advancing a feasibility study for an underground mine at the company's Goldrush deposit, located six kilometers from the Cortez Hills mine. The prefeasibility study contemplates a mine life of 21 years, with average annual production of 440,000 ounces of gold in the first full five years of operation, at all-in sustaining costs of $665 per ounce. Initial capital costs are estimated to be approximately $1 billion.
On March 28, 2016, Barrick filed an updated National Instrument 43-101 Technical Report for the Cortez property. The capital expenditure estimates included in the report were based on the life of mine plan in place at Cortez in support of our year-end 2015 mineral reserve statement. Following subsequent optimization work, we have made improvements to the Cortez mine plan that resulted in the deferral of certain capital expenditures. This optimized plan is reflected in the capital expenditure guidance provided by the company on February 17, 2016, for the years 2016, 2017, and 2018.
The Goldstrike mine contributed 249,000 ounces in the first quarter at all-in sustaining costs of $709 per ounce. Lower all-in sustaining costs primarily reflect lower sustaining capital spend in the quarter. Optimization of contract labor also helped to reduce underground mining costs by $22 per ounce compared to the prior-year period. We continue to expect 2016 gold production of 975,000-1,075,000 ounces at all-in sustaining costs of $780-$850 per ounce.
Major Best-in-Class initiatives in execution include increasing tonnes mined from the underground through improvements to dispatch systems, and better paste fill utilization. Goldstrike is also targeting an increase in overall equipment availability at the thiosulfate leaching plant through maintenance and reliability improvements.
Pueblo Viejo (60 percent)
Barrick's 60 percent share of production from Pueblo Viejo for the first quarter was 172,000 ounces at all-in sustaining costs of $496 per ounce. Lower all-in sustaining costs were driven by lower cash costs, reflecting lower maintenance, contractor, and energy costs, and a reduction in sustaining capital expenditures. We continue to expect attributable production of 600,000-650,000 ounces of gold in 2016. All-in sustaining cost guidance for the year has been reduced to $550-$590 per ounce, down from $570-$620 per ounce.
Best-in-Class priorities include a project to increase revenue by selling excess power generated by Pueblo Viejo's Quisqueya power plant to the national energy grid. The mine is also pursuing an opportunity to increase gold recoveries through adjustments to fresh water and reclaimed water use upstream and downstream from the autoclaves.
The Lagunas Norte mine contributed 100,000 ounces at all-in sustaining costs of $551 per ounce in the first quarter. Higher all-in sustaining costs compared to the prior year period primarily reflect the impact of lower production and lower grades as the operation nears the end of its existing mine life, in addition to higher capital expenditures, driven by higher capitalized stripping costs. Production in 2016 is expected to be 410,000-450,000 ounces at all-in sustaining costs of $570-$640 per ounce.
Priority Best-in-Class initiatives in execution include efforts to increase production by improving the efficiency of the carbon-in-column circuit through incremental reductions in the residual amount of gold in barren solution returning to the leach pad. In addition, the mine has reduced operating costs through an initiative to renegotiate major contracts. This year, Lagunas Norte will also focus on improving equipment availability and lowering maintenance costs by reducing costs of replacement components, extending the life of components, and reducing unplanned maintenance activities.
We are now advancing a two-phase feasibility study on a plan to extend the life of Lagunas Norte by approximately nine years by mining the refractory material below the oxide ore body in the current open pit6. This requires the installation of a grinding-flotation-autoclave and carbon-in-leach processing circuit to treat the refractory material. The prefeasibility study, completed in late 2015, contemplates average annual production of 240,000 ounces of gold in the first five years at all-in sustaining costs of $625 per ounce. Initial capital costs are estimated to be approximately $640 million.
The Veladero mine produced 132,000 ounces of gold in the first quarter at all-in sustaining costs of $675 per ounce. Lower all-in sustaining costs reflect a decrease in sustaining capital expenditures combined with lower cash costs, driven by cost savings initiatives and the impact of local currency devaluation, including lower labor, maintenance, and diesel costs. Production guidance for 2016 is unchanged at 630,000-690,000 ounces of gold. All-in sustaining cost guidance for the year has been reduced to $790-$860 per ounce, down from $830-$900 per ounce.
Best-in-Class initiatives in execution for 2016 include more efficient contractor demand management, improvements in mine productivity through more efficient drilling, loading and hauling, completing more maintenance tasks in-house, and improved planning and load sharing of auxiliary equipment.
The mine is also focused on improving its long-term business plan through optimizing crushing and conveying activities, selective high wall steepening to reduce costs, more efficient leach pad construction, maintenance cost reductions, and savings in supply chain.
Turquoise Ridge (75 percent)
The Turquoise Ridge mine contributed 50,000 ounces of gold to Barrick in the first quarter at all-in sustaining costs of $728 per ounce. We continue to expect production of 200,000-220,000 ounces in 2016 at all-in sustaining costs of $770-$850 per ounce.
Best-in-Class initiatives in execution at Turquoise Ridge include the implementation of an operator competency and training management system designed to drive greater consistency of production rates, and sustainable increases in production over time. The mine is also implementing a project to improve the efficiency and effectiveness of ground support rehabilitation activities, while maintaining a focus on safety. In addition, Turquoise Ridge is targeting maintenance improvements for mining equipment to improve availability and utilization.
We have completed a feasibility study for the development of a third shaft at Turquoise Ridge, which has the potential to increase output to an average of 500,000 ounces per year (100 percent basis) at all-in sustaining costs of $625-$675 per ounce. The project would require initial capital expenditures of approximately $300-$325 million (100 percent basis) for additional underground development and shaft construction. Given the positive impact of early Best-in-Class efforts, we have determined the optimal path forward is to defer the construction of an additional shaft in favor of a three-phase approach for the development of Turquoise Ridge. The first phase, underway now, contemplates additional improvements to sustain a throughput rate of 1,825 tonnes per day at the lowest possible cost. In support of this goal, we are pursuing greater productivity through continuous mining, additional ventilation modifications, and other alternative mining methods. The second phase contemplates the installation of a new ventilation shaft. Adding a ventilation shaft would allow Turquoise Ridge to maintain throughput of 1,825 tonnes per day as mining moves deeper and further away from the existing shaft and ventilation infrastructure. The third phase, representing full implementation of the feasibility study, contemplates the conversion of the ventilation shaft into a full production shaft. Additional processing capacity would be required for production rates above 1,850 tonnes per day.
Barrick's other mines - consisting of Golden Sunlight, Hemlo, KCGM, and Porgera - contributed 208,000 ounces at all-in sustaining costs of $764 per ounce in the first quarter.
Acacia Mining (63.9 percent)
Barrick's share of first quarter production was 122,000 ounces of gold at all-in sustaining costs of $959 per ounce. We continue to expect our share of 2016 production from Acacia to be 480,000-500,000 ounces at all-in sustaining costs of approximately $950-$980 per ounce.
Copper production in the first quarter was 111 million pounds at all-in sustaining costs of $1.97 per pound. For 2016, we continue to anticipate copper production of 370-410 million pounds. Reflecting the impact of successful Best-in-Class cost reduction initiatives at Lumwana, we have lowered our copper all-in sustaining cost guidance to $1.95-$2.25 per pound, down from our original range of $2.05-$2.35 per pound.
In April 2016, the Zambian government introduced legislation that would replace the current nine percent royalty on mining operations with a sliding scale royalty rate, ranging from four percent at copper prices below $2.04 per pound, five percent at copper prices between $2.04 and $2.72 per pound, and six percent at a copper price of $2.72 per pound and above. Legislation has also been introduced to remove the 15 percent variable profit tax on income from mining companies. We expect these changes to be enacted in the second quarter of 2016, with an effective date of April 1, 2016.
The Jabal Sayid project, a 50-50 joint venture with Saudi Arabian Mining Company (Ma'aden), is expected to achieve commercial production in the second quarter of 2016, ramping up to a production rate of about 100 million pounds per year in the second half of 2017, as additional underground development is completed.
CREATION OF GROWTH GROUP
Our overarching objective is to grow our free cash flow per share. Planning for and managing this future growth is critical. Achieving it relies on many groups working together, including Mine Exploration, Global Exploration, Business Development, our Reserves and Resources team, and Finance. It also requires close collaboration with our General Managers and Executive Directors. To support this effort, we have created a new Growth Group at the most senior levels of the company. The Group is comprised of: Rob Krcmarov, Executive Vice President, Exploration and Growth; Catherine Raw, Executive Vice President and Chief Financial Officer; and Kevin Thomson, Senior Executive Vice President, Strategic Matters.
The Growth Group will evaluate strategies to optimize the development of our existing reserves and resources, while adding new resources through exploration. It will also play a central role in assessing external acquisitions and earn-in opportunities, all with the objective of growing free cash flow per share over the long term. The Group will serve as a central clearing house to ensure strategic alignment and appropriate coordination of all major growth initiatives across the company.
During the first quarter, Barrick formed a new exploration partnership with Alicanto Minerals Ltd. at the Arakaka gold project in Guyana. The Arakaka project is located in a relatively underexplored area of the highly prospective Guiana Shield. The project has a strike length of 12 kilometers, of which less than five percent has been drill tested. As part of the agreement, Barrick has the option to earn a 65 percent interest in the project after meeting $10 million in funding requirements, including $8 million in exploration expenditures over four years, and $2 million paid to Alicanto upon completion of the exploration earn-in expenditures. Initial drill testing under this agreement is scheduled to commence in the second quarter.
APPENDIX 1 - Updated 2016 Operating and Capital Expenditure Guidance
|GOLD PRODUCTION AND COSTS|
(millions of ounces)
($ per ounce)
|Cash Costs7 |
($ per ounce)
|Pueblo Viejo (60%)||0.600-0.650||550-590||420-450|
|Turquoise Ridge (75%)||0.200-0.220||770-850||560-620|
|COPPER PRODUCTION AND COSTS|
(millions of pounds)
($ per pound)
|C1 cash costs |
($ per pound)
|Mine site sustaining||1,200-1,350|
APPENDIX 2 - 2016 Outlook Assumptions and Economic Sensitivity Analysis
|2016 Guidance Assumption||Hypothetical |
|Impact on |
|Impact on |
|Gold revenue, net of royalties||$1,200/oz||+/- $100/oz||n/a||$410|
|Copper revenue, net of royalties||$2.15/lb||+/- $0.50/lb||n/a||$92|
|Gold all-in sustaining costs|
|Gold royalties & production taxes||$1,200/oz||$100/oz||($3)/oz||$12|
|WTI crude oil price10,11||$34/bbl||$10/bbl||($2)/oz||$7|
|Australian dollar exchange rate10||0.73 : 1||+10%||$4/oz||($17)|
|Australian dollar exchange rate10||0.73 : 1||-10%||($4)/oz||$17|
|Canadian dollar exchange rate||1.35 : 1||+10%||($5)/oz||$21|
|Canadian dollar exchange rate||1.35 : 1||-10%||$6/oz||($26)|
|Copper all-in sustaining costs|
|WTI crude oil price10,11||$34/bbl||$10/bbl||($0.02)/lb||$4|
|Chilean peso exchange rate||691 : 1||+10%||($0.03)/lb||$6|
|Chilean peso exchange rate||691 : 1||-10%||$0.04/lb||($7)|
1 Adjusted net earnings, free cash flow, EBITDA, all-in sustaining costs per ounce/pound, cash costs per ounce, and C1 cash costs per pound, are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and detailed reconciliations, please see pages 35-40 of Barrick's First Quarter 2016 Report.
2 Total includes $534 million held at Acacia and Pueblo Viejo, which may not be readily deployed outside of Acacia and/or Pueblo Viejo.
3 Amount excludes capital leases and includes project financing payments at Pueblo Viejo (60 percent basis) and Acacia (100 percent basis).
4 Barrick's share.
5 Barrick's share on a 100 percent accrued basis.
6 Scientific and technical information relating to the Cortez expanded underground mining project and the Lagunas Norte refractory ore mine life extension project contained in this press release has, in each case, been reviewed and approved by Rick Sims, Registered Member SME, Senior Director, Resources and Reserves of Barrick; Steven Haggarty, P.Eng., Senior Director, Metallurgy of Barrick; and Patrick Garretson, Registered Member SME, Senior Director, Life of Mine Planning of Barrick. Each of Messrs. Sims, Haggarty and Garretson is a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. For further information with respect to the key assumptions, parameters and risks associated with these projects, and other related technical information, please refer to the updated National Instrument 43-101 technical reports filed on SEDAR (www.sedar.com) and EDGAR (www.sec.gov) on March 28, 2016, for each of Barrick's Cortez and Lagunas Norte mines.
7 Total gold cash costs and all-in sustaining costs per ounce exclude the impact of hedges and/or costs allocated to non-operating sites.
8 Operating unit guidance ranges reflect expectations at each individual operating unit, but do not add up to corporate-wide guidance range total.
9 We have combined our previous capital expenditure categories of Minesite expansion and Projects into one category called Project.
10 Due to our hedging activities, which are reflected in these sensitivities, we are partially protected against changes in these factors.
11 Impact on EBITDA only reflects contracts that mature in 2016.
|Barrick Gold Corporation|
|(in United States dollars)||Three months ended March 31,|
|Gold production (thousands of ounces)1||1,280||1,390|
|Gold sold (thousands of ounces)1||1,306||1,385|
|Per ounce data|
|Average spot gold price||$||1,183||$||1,218|
|Average realized gold price2||1,181||1,219|
|All-in sustaining costs2||706||927|
|Cash costs (on a co-product basis)2||577||671|
|All-in sustaining costs (on a co-product basis)2||730||956|
|All-in costs (on a co-product basis)2||782||1,053|
|Copper production (millions of pounds)3||111||118|
|Copper sold (millions of pounds)||103||121|
|Per pound data|
|Average spot copper price||$||2.12||$||2.64|
|Average realized copper price2||2.18||2.55|
|C1 cash costs2||1.47||1.84|
|All-in sustaining costs2||1.97||2.40|
|Financial Results (millions)|
|Net Income (loss)4||(83||)||57|
|Adjusted net earnings2||127||62|
|Total project capital expenditures5||40||103|
|Total capital expenditures - sustaining5||175||353|
|Operating cash flow||451||316|
|Free cash flow2||181||(198||)|
|Per Share Data (dollars)|
|Net income (loss) (basic and diluted)||(0.07||)||0.05|
|Adjusted net earnings (basic)2||0.11||0.05|
|Weighted average basic and diluted common shares (millions)||1,165||1,165|
|As at March 31,||As at December 31,|
|Financial Position (millions)|
|Cash and equivalents||$||2,323||$||2,455|
|Working capital (excluding cash)||1,201||1,310|
|1||Production includes Acacia on a 63.9% basis and Pueblo Viejo on a 60% basis, both of which reflect our equity share of production. Also includes production from Bald Mountain and Round Mountain up to January 11, 2016, the effective date of sale of the assets. 2015 includes production from Porgera on a 95% basis whereas 2016 figures are on a 47.5% basis reflecting the sale of 50% of Porgera in third quarter 2015. Sales include our equity share of gold sales from Acacia and Pueblo Viejo.|
|2||Realized price, cash costs, all-in sustaining costs, all-in costs, cash costs (on a co-product basis), all-in sustaining costs (on a co-product basis), all-in costs (on a co-product basis), C1 cash costs, adjusted net earnings, adjusted EBITDA and free cash flow are non-GAAP financial performance measures with standard definition under IFRS. Refer to the Non-GAAP Financial Performance Measures section on pages 34 - 39 of the Company's MD&A.|
|3||Reflects production from Jabal Sayid and Zaldívar on a 50% basis, which reflects our equity share of production. 2015 production includes Zaldívar on a 100% basis prior to the sale of 50% of the mine in fourth quarter 2015.|
|4||Net Income (loss) represents net income attributable to the equity holders of the Company.|
|5||Amounts presented on a 100% accrued basis. Project capital expenditures are included in our calculation of all-in costs, but not included in our calculation of all-in sustaining costs.|
|Production and Cost Summary|
|Gold Production (attributable ounces) (000s)||All-in sustaining costs5 ($/oz)|
|Three months ended||Three months ended|
|March 31,||March 31,|
|Other Mines - Gold3||208||423||764||1,009|
|Copper Production (attributable pounds)4 (millions)||C1 Cash Costs5 ($/lb)|
|Three months ended||Three months ended|
|March 31,||March 31,|
|Total Gold Production Costs ($/oz)|
|Three months ended|
|Direct mining costs before impact of hedges at market foreign exchange rates||$||526||$||623|
|Losses realized on currency hedge and commodity hedge/economic hedge contracts||23||13|
|Total production costs||$||805||$||879|
|General & administrative costs||37||40|
|Rehabilitation - accretion and amortization (operating sites)||7||25|
|Mine on-site exploration and evaluation costs||4||4|
|Mine development expenditures||57||120|
|Sustaining capital expenditures||48||96|
|All-in sustaining costs5||$||706||$||927|
|Total Copper Production Costs ($/lb)|
|Three months ended|
|C1 cash costs5||$||1.47||$||1.84|
|General & administrative costs||0.06||0.05|
|Royalties and inventory impairments||0.14||0.28|
|Rehabilitation - accretion and amortization (operating sites)||0.01||0.01|
|Mine development expenditures||0.24||0.16|
|Sustaining capital expenditures||0.05||0.06|
|All-in sustaining costs5||$||1.97||$||2.40|
|1||Reflects production from Pueblo Viejo on a 60% basis, which reflects our equity share of production.|
|2||Reflects production from Acacia on a 63.9% basis, which reflects our equity share of production.|
|3||In 2016, Other Mines - Gold includes Golden Sunlight, Hemlo, Cowal, Ruby Hill, Porgera on a 47.5% basis and Kalgoorlie. Also includes production from Bald Mountain and Round Mountain up to January 11, 2016, the effective date of sale of these assets. In 2015, Other Mines - Gold included Bald Mountain, Round Mountain, Golden Sunlight, Hemlo, Pierina, Cowal, Ruby Hill, Plutonic up to January 31, Kanowna up to March 1, Marigold, Porgera on a 95% basis, and Kalgoorlie.|
|4||In 2016, reflects production from Jabal Sayid on a 50% basis and from Zaldívar on a 50% basis, which reflects our equity share. In 2015, reflects production from Zaldívar on a 100% basis.|
|5||Cash costs, all-in sustaining costs, all-in costs and C1 cash costs are non-GAAP financial performance measures with no standard meaning under IFRS. Refer to the Non-GAAP Financial Performance Measures section on pages 34 - 39 of the Company's MD&A.|
|Consolidated Statements of Income|
|Barrick Gold Corporation|
|(in millions of United States dollars, except per share data) (Unaudited)||Three months ended|
|Revenue (notes 5 and 6)||$||1,930||$||2,245|
|Costs and expenses (income)|
|Cost of sales (note 5)||1,324||1,708|
|General and administrative expenses||58||67|
|Exploration, evaluation and project expenses||55||86|
|Loss (gain) on currency translation (note 8B)||139||(2||)|
|Closed mine rehabilitation||23||8|
|Gain from equity investees||(5||)||-|
|(Gain) loss on non-hedge derivatives||(4||)||3|
|Other expense (income) (note 8A)||14||(18||)|
|Income before finance costs and income taxes||$||325||$||388|
|Finance costs, net||(211||)||(194||)|
|Income before income taxes||$||114||$||194|
|Income tax expense (note 9)||(186||)||(105||)|
|Net income (loss)||$||(72||)||$||89|
|Equity holders of Barrick Gold Corporation||$||(83||)||$||57|
|Non-controlling interests (note 14)||$||11||$||32|
|Earnings (loss) per share data attributable to the equity holders of Barrick Gold Corporation (note 7)|
|Net income (loss)|
|The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2016 available on our website are an integral part of these consolidated financial statements.|
|Consolidated Statements of Comprehensive Income|
|Barrick Gold Corporation||Three months ended|
|(in millions of United States dollars) (Unaudited)||March 31,|
|Net income (loss)||$||(72||)||$||89|
|Other comprehensive income (loss), net of taxes|
|Movement in equity investments fair value reserve:|
|Net unrealized change on equity investments, net of tax $nil and $nil||1||(5||)|
|Net realized change on equity investments, net of tax $nil and $nil||-||17|
|Items that may be reclassified subsequently to profit or loss:|
|Unrealized gains (losses) on derivatives designated as cash flow hedges, net of tax $1 and $14||(10||)||(57||)|
|Realized losses on derivatives designated as cash flow hedges, net of tax ($2) and ($1)||18||15|
|Currency translation adjustments, net of tax $nil and $nil||91||(32||)|
|Total other comprehensive income (loss)||100||(62||)|
|Total comprehensive income||$...|