Barrick, one of the world’s leading mining companies, has reported strong and consistent performance from its operations in Africa. The company’s CEO, Dr. Mark Bristow, highlighted the reliable production levels and well-managed costs in the region during the announcement of their latest financial results.
The company’s half-year results showed that the Loulo-Gounkoto complex in Mali had another stable quarter, with cash costs under control. This site continues to be a cornerstone of Barrick’s operations in Africa, consistently delivering strong results. Additionally, ongoing exploration near the mine has yielded promising results, indicating that the life of the mine could be extended further. This means Loulo-Gounkoto is likely to replace the gold it mines this year, ensuring continued production well into the future.
In the Democratic Republic of Congo (DRC), Barrick’s Kibali mine, the largest gold mine in Africa, continues to be a standout performer. The mine not only maintains its impressive gold output but also keeps expanding its reserves. This growth is crucial as it positions Kibali to keep producing more than 700,000 ounces of gold annually for at least the next 15 years.
Barrick’s commitment to sustainability is also evident at Kibali. The company is set to commission a solar power and battery storage facility next year, which will work alongside the mine’s existing hydropower plants. Once operational, these renewable energy sources will supply 85% of the mine’s energy needs, with the potential for 100% renewable energy during half the year.
Dr. Bristow shared that when Barrick began developing Kibali 14 years ago, the DRC region was one of the most underdeveloped areas. However, the mine’s success has transformed the region into a thriving economic hub. The local population has grown from 30,000 to over 500,000 people, thanks to the infrastructure and community development projects initiated by Barrick. The company has invested heavily in the local community, with nearly $2.7 billion paid to local contractors and suppliers since 2010. This support has fostered significant growth, including the construction of a power station by an all-Congolese team.
Looking beyond gold, Barrick is also making strategic moves in the copper market, where demand and prices are on the rise. In Zambia, the expansion of the Lumwana mine’s super pit is set to nearly double production from 130,000 tons per year to 240,000 tons per year. Additionally, Barrick’s Reko Diq project in Pakistan is targeting an annual production of 400,000 tons of copper and 500,000 ounces of gold, reflecting the company’s broadening focus on other valuable minerals.
Barrick’s financial health remains robust, with strong cash flows from its operations expected to fund these and other developments. The company’s balance sheet continues to support growth and dividends, ensuring that shareholders benefit from the company’s ongoing success. Key projects aimed at boosting production include the Goldrush mine in Nevada, which is expected to produce more than 400,000 ounces of gold annually by 2028. Another promising project is the Fourmile mine, also in Nevada, which could produce over 500,000 ounces of gold each year for more than 20 years.
In the Dominican Republic, Barrick is expanding its Pueblo Viejo mine, aiming to increase gold production to over 800,000 ounces annually beyond 2040. This project, like others, is being funded by the strong cash flows generated by Barrick’s operations.
Barrick’s second-quarter results further underline the company’s strong performance. Net earnings increased by 25%, and earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 48%, driven by strong operating cash flows of $1.16 billion. Free cash flow also increased to $340 million. The company’s net earnings per share rose by 24% to $0.21, and the quarterly dividend was maintained at $0.10 per share, reflecting Barrick’s ongoing commitment to value creation and growth.
In addition to maintaining its dividend, Barrick repurchased 2.95 million shares during the second quarter as part of a $1 billion share buyback program announced earlier this year. CFO Graham Shuttleworth highlighted that the strength of Barrick’s balance sheet and its world-class gold and copper assets allow the company to distribute a solid dividend while still having ample liquidity to invest in future growth opportunities. The company also took advantage of what it saw as a compelling valuation to buy back stock.
Barrick’s success is also reflected in the favorable prices it achieved for its products in the second quarter. The company sold gold at an average price of $2,344 per ounce and copper at $4.53 per pound, highlighting the strong demand for these commodities.
Source: Mining Weekly
