Barrick Gold’s strong operating cash flow is providing the financial flexibility it needs to fund its growth projects.
President and chief executive Mark Bristow said Barrick has managed to reduce net debt by $3.5 billion, investing $11.2 billion in plans that promise over 10 years of mine life. This should return more than $5 billion to shareholders.
With six Tier-1 gold mines in its portfolio – and more in the pipeline – Bristow said Barrick’s long-term plans are based on quality orebodies with industry-leading grades that drive rising cost profiles.
The Goldrush mine in Nevada, Barrick’s latest project, is on track to hit the targeted 400,000 ounces per annum by 2028. Edging Goldrush is Barrick’s fully-owned Fourmile project.
Fourmile is returning grades double those of Goldrush and is on its way to becoming another Tier-1 mine.
The Leeville project in Nevada is producing 14 million ounces, developing into a major growth driver that could double or triple the reserves of the nearby Carlin gold mine.
“Five years ago, we set out to build a sustainably profitable gold and copper business focused on world-class assets,” Bristow said.
“We did not have to buy them at a premium. They were embedded in the merged portfolio of Barrick and Randgold and we just had to unlock their value.
Copper business is another growing sector for Barrick. This strategic metal is said to enhance the company’s growth optionality to include copper-gold porphyries.
Copper porphyry deposits are one of the most valuable types. Expansion into this business offers more than 30 years of mine life. Barrick already has two transformative projects on track to commence in 2028.
The Reko-Diq copper-gold project in Pakistan is expected to produce 400,000 tonnes of copper as well as 500,000 ounces of gold per year in phase two of development.
The Lumwana Super Pit in Zambia is set to double production over a more than 30-year mine life.
Barrick is estimating 30 per cent growth in the production of gold-equivalent ounces from its existing assets by 2029.
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