Barrick(GOLD) - 2023 Q1 - Quarterly Report

Production Performance - Barrick Gold Corporation reported a significant increase in gold production, achieving 1.2 million ounces in Q1 2023, a 10% increase compared to Q1 2022[1] - The company has set a production guidance of 4.6 million ounces of gold for the full year 2023, maintaining a stable outlook despite market fluctuations[1] - Gold production decreased by 15% to 952,000 ounces compared to Q4 2022, and by 4% compared to Q1 2022[19] - Gold production for Q1 2023 was 952 thousand ounces, a decrease of 15% from Q4 2022, with total cash costs rising by 14% to $986 per ounce[106] - The company expects 2023 gold production to be in the range of 4.2 to 4.6 million ounces, with stronger performance anticipated from Cortez, Pueblo Viejo, and Turquoise Ridge[91] Financial Performance - Barrick's net earnings for Q1 2023 were $300 million, representing a 15% increase from the previous year, driven by higher gold prices and operational efficiencies[1] - Revenues for Q1 2023 were $2,643 million, a decrease of 5% from Q4 2022 and a 7% decline from Q1 2022[19] - Net earnings for Q1 2023 were $120 million, a significant recovery from a loss of $735 million in the previous quarter, but down 73% from $438 million in the same period last year[27] - Adjusted net earnings for Q1 2023 were $247 million, up 12% from the previous quarter but down 47% year-over-year[19] - Free cash flow for Q1 2023 was $88 million, a significant improvement from negative free cash flow of $96 million in the previous quarter[33] Cost Management - The total cash costs per ounce of gold sold were $1,200, reflecting a 5% decrease year-over-year, contributing to improved profit margins[1] - Gold total cash costs per ounce rose by 14% to $986 in Q1 2023, compared to $868 in Q4 2022[19] - The cost of sales for gold in Q1 2023 was $1,378 per ounce, reflecting a 4% increase compared to Q4 2022[107] - Total cash costs per ounce for gold increased by 19% to $1,074 in Q1 2023 compared to $906 in Q4 2022[116] Capital Expenditures and Investments - Barrick is advancing its Goldrush Project, with an estimated capital expenditure of $150 million planned for 2023, aimed at enhancing production capacity[1] - Total consolidated capital expenditures for Q1 2023 were $688 million, a decrease of 23% from Q4 2022[19] - The capital expenditures increase of $77 million was attributed to investments in the new owner mining fleet at Lumwana and the solar plant expansion at Loulo-Gounkoto[38] - Capital expenditures for Q1 2023 were 4% higher compared to the same prior year period, due to projects related to processing facilities[133] Environmental and Social Governance - Barrick is committed to reducing greenhouse gas emissions by 30% by 2030, aligning with its environmental and social governance (ESG) goals[1] - The interim GHG emissions reduction target is set for a minimum 30% reduction by 2030 against a 2018 baseline of 7,541 kt CO2-e[79] - Total Scope 1 and 2 GHG emissions for Q1 2023 were 1,552 kt CO2-e, approximately 1% lower than the same period in 2022[81] - The company invested over $5.8 million in local community development projects during Q1 2023, with a focus on planning community investments for the year ahead[66] Operational Challenges - The company expects to update its guidance following the execution of definitive agreements related to the reopening of the Porgera mine, which is currently excluded from the 2023 guidance[46] - Major maintenance at Zaldívar is scheduled for Q3 2023, which may impact copper production[95] - Gold production for Q1 2023 was 28% lower than the same prior year period, impacted by an 18-day planned maintenance at the Goldstrike roaster and lower underground ore tonnes[130] Safety and Performance Metrics - The company's LTIFR was 0.21 and TRIFR increased to 1.65 in Q1 2023, indicating a need for improved safety performance[59] - The recovery rate for the autoclave process improved to 81% in Q1 2023 from 72% in Q4 2022[116] - Total tonnes mined in Q1 2023 were 21% higher compared to the prior quarter, driven by open pit sequencing, despite record snow levels impacting operations[126]