Barrick(GOLD) - 2022 Q4 - Annual Report

Financial Performance - Barrick Gold Corporation reported adjusted net earnings for the full year 2022 of $1.5 billion, representing a decrease of 20% compared to 2021[1] - The company generated free cash flow of $1.2 billion in 2022, down from $1.5 billion in 2021, reflecting a decrease of 20%[1] - Revenue for Q4 2022 was $2,774 million, a 10% increase from Q3 2022, but an 8% decrease compared to Q4 2021[24] - Net loss for Q4 2022 was $735 million, a significant decline from net earnings of $241 million in Q3 2022, and a decrease of 79% from $2,022 million in Q4 2021[24] - Adjusted EBITDA for the year ended December 31, 2022, was $5,613 million, down 23% from $7,258 million in 2021[24] - Free cash flow for the year was $432 million, a decrease of 78% from $1,943 million in 2021[24] - For the year ended December 31, 2022, net earnings were $432 million, down from $2,022 million in 2021, with adjusted net earnings of $1,326 million, a decrease of $739 million year-over-year[40] Production and Costs - Barrick's gold production for 2022 was 4.5 million ounces, a slight decrease from 4.8 million ounces in 2021[1] - Total cash costs per ounce of gold produced were $1,200, while all-in sustaining costs were reported at $1,500 per ounce[1] - Gold production in Q4 2022 was 1,120 thousand ounces, a 13% increase from Q3 2022, but a 7% decrease compared to Q4 2021[24] - The company anticipates gold production in 2023 to be between 4.2 million and 4.6 million ounces, with total cash costs expected to be between $1,100 and $1,200 per ounce[1] - The company reported a gold all-in sustaining cost of $1,242 per ounce for Q4 2022, a 2% decrease from Q3 2022[24] - The total cash costs for gold production in 2022 were $862 per ounce, with 2023 forecasted costs ranging from $820 to $880 per ounce[79] - Cost of sales for gold is projected to be between $1,170 and $1,250 per ounce in 2023, compared to $1,241 per ounce in 2022[91] Capital Expenditures and Investments - Barrick plans to invest approximately $1.5 billion in capital expenditures in 2023, focusing on growth projects and sustaining capital[1] - Total consolidated capital expenditures for the year were $3,049 million, a 25% increase from $2,435 million in 2021[24] - The company repurchased $424 million of shares in 2022 and authorized a new buyback program for up to $1 billion over the next 12 months[54] - Total attributable gold and copper capital expenditure for 2023 is projected to be between $2,200 million and $2,600 million, compared to $2,417 million in 2022[104] Environmental and Social Governance - Barrick's commitment to environmental and social governance includes targets for reducing greenhouse gas emissions by 30% by 2030[1] - The company established sustainability-linked metrics in its $3.0 billion revolving credit facility, which includes performance targets for greenhouse gas emissions and water use efficiency[49] - Barrick's total Scope 1 and 2 GHG emissions for 2022 were approximately 2% below the prior year, totaling 1,890 kt CO₂-e[149] - The company aims for a minimum 30% reduction in GHG emissions by 2030 against a 2018 baseline of 7,541 kt CO₂-e[147] - The company invested over $13 million in local community development projects during Q4 2022 and $35 million for the full year 2022[133] Exploration and Resource Management - Barrick is actively pursuing opportunities for exploration and development in the Redhill mining zone, with a focus on resource conversion[1] - Barrick's proven and probable gold reserves increased to 76 million ounces in 2022, up from 69 million ounces in 2021, representing a year-over-year growth of 6.7 million ounces[174] - The Africa and Middle East region converted a net of 2.4 million ounces to attributable proven and probable reserves in 2022, with contributions from Kibali, Loulo-Gounkoto, North Mara, Bulyanhulu, and Tongon[175] - The Latin America & Asia Pacific region converted a net of 7.3 million ounces to attributable proven and probable reserves, primarily from Pueblo Viejo, which added 6.5 million ounces[176] - The North America region converted a net of 1.8 million ounces to attributable proven and probable reserves, driven by pre-feasibility studies for the Robertson open pit project at Cortez[178] Future Outlook - The company aims to optimize free cash flow and manage risks to create long-term value for shareholders[19] - The company plans to update guidance for Porgera following the execution of definitive agreements and a timeline for resuming operations[88] - Major maintenance at Zaldívar is scheduled for the first and third quarters of 2023, impacting copper production[96] - The expected effective income tax rate for 2023 is between 27% and 32%, unchanged from 2022[107] - Gold price sensitivity is projected at $1,650/oz with a hypothetical change of +/- $100/oz impacting EBITDA by +/- $590 million[108]