- Organic Growth powers robust production profile for Barrick (ABX)
- There are 2 million ounces of inferred resources available for upgrading and around 10 million ounces of measured and indicated resources
- Gold and copper production has met or exceeded guidance each year since the merger
- Strong cash flow generation has turned net debt of $4.2 billion into net cash of $145 million
- Barrick Gold (ABX) is down 0.34 per cent, trading at C$20.66 at 12:12 pm EST
Barrick Gold (ABX) may be headed for strong growth over the next five to 10 years.
The company has the potential to unlock value at the Pueblo Viejo gold mine in the Dominican Republic.
The finalization of the location for the new tailings storage facility will support that growth.
There are 2 million ounces of inferred resources available for upgrading and around 10 million ounces of measured and indicated resources. Both are expected to be proven and probable reserves.
“Others buy, Barrick builds. This investment is expected to extend the Tier One mine’s life beyond 2040, at an average annual production rate of more than 800,000 ounces,” said Bristow.
“There’s also more to come from our three Tier One assets in Nevada, where we hold 8,000 square kilometres of prospective land in one of the world’s most richly-endowed gold districts,” added Bristow.
Bristow said Barrick’s performance since its merger with Randgold three years ago had been driven by a clear and disciplined long-term strategy focused on leveraging its Tier One assets and finding more.
Gold and copper production has met or exceeded guidance each year since the merger.
Strong cash flow generation has turned net debt of $4.2 billion into net cash of $145 million at the end of last quarter.
The strong balance sheet has enabled the company to deliver peer-leading returns to shareholders within a performance-linked dividend policy framework.
Brownfields exploration continues to replace reserves depleted by mining, and the search for discoveries has been extended across Barrick’s expanding global footprint.
The company is also keeping in mind the changing world in which we live, considering sustainability.
“We have refined our approach to sustainability so that it holistically embraces the linked challenges of poverty, climate change and biodiversity,” added Bristow.
“It includes a detailed, demonstrable roadmap based on climate science, to the achievement of a 30 per cent reduction in greenhouse gas emissions by 2030, against a 2018 baseline, with the ultimate goal of net zero emissions by 2050,” concluded Bristow.
Barrick Gold (ABX) is down 0.34 per cent, trading at C$20.66 at 12:12 pm EST.
