Barrick(US:GOLD)2024-03-28 21:12Financial Performance - Revenues for Q4 2023 reached $3,059 million, a 7% increase from Q3 2023, and total revenues for the year were $11,397 million, up 3% from 2022[27]. - Net earnings for Q4 2023 were $479 million, a 30% increase from Q3 2023, and for the year, net earnings surged 194% to $1,272 million compared to $432 million in 2022[27]. - Free cash flow for Q4 2023 was $136 million, a significant decrease of 62% from Q3 2023, but increased by 50% year-over-year to $646 million[27]. - Total consolidated capital expenditures for 2023 were $3,086 million, a 1% increase from $3,049 million in 2022[27]. - Adjusted net earnings for Q4 2023 were $466 million, an increase of $48 million from the previous quarter, driven by a realized gold price of $1,986 per ounce compared to $1,928 per ounce in Q3 2023[41]. - For the year ended December 31, 2023, net earnings reached $1,272 million, significantly higher than $432 million in 2022, aided by a $120 million impairment reversal and a $300 million gain from the Reko Diq project[42]. Production and Costs - The company anticipates a production guidance of approximately 4.5 million ounces of gold and 500 million pounds of copper for the upcoming year[7]. - Gold production in Q4 2023 was 1,054 thousand ounces, a slight increase of 1% from Q3 2023, while annual production decreased by 2% to 4,054 thousand ounces[27]. - Total cash costs per ounce of gold are projected to be around $1,000, while C1 cash costs per pound of copper are expected to be approximately $3.00[7]. - Barrick's all-in sustaining costs per ounce of gold are projected to be around $1,200, indicating a commitment to maintaining cost efficiency[7]. - The cost of sales for gold in 2023 was $1,334 per ounce, with a forecasted range of $1,320 to $1,420 per ounce for 2024[69]. - Total cash costs for gold in 2023 were $960 per ounce, with a forecasted range of $940 to $1,020 per ounce for 2024[69]. Capital Expenditures and Investments - Barrick plans to invest $1.5 billion in capital expenditures for growth projects, including the Goldrush Project and the Pueblo Viejo plant expansion[7]. - The company aims to achieve a 15% return on Tier One capital investments and a 20% return on Tier Two Gold Assets, focusing on organic growth and strategic asset development[21]. - Barrick's total attributable capital expenditures for 2023 were $2.36 billion, with a forecast for 2024 ranging from $2.50 billion to $2.90 billion[69]. - Capital expenditures for gold and copper in 2024 are expected to be between $2,500 million and $2,900 million, higher than the 2023 actual spend of $2,363 million[87]. Exploration and Development - The company is actively pursuing new exploration opportunities, with a pipeline of high-confidence projects at or near existing operations[7]. - Barrick's exploration and project expenses for 2023 were $361 million, with a forecast for 2024 between $400 million to $440 million[69]. - A comprehensive evaluation program is planned for the Fourmile deposit, targeting an update to mineral resources by the end of 2024[157]. Environmental and Social Governance - Barrick aims to enhance its environmental and social governance initiatives, including greenhouse gas emissions reduction targets[7]. - The company set a minimum GHG emissions reduction target of 30% by 2030 against a 2018 baseline of 7,541 kt CO2e[127]. - The water recycling and reuse rate for Q4 2023 was approximately 84%, with an annual target set at 80%[133]. - The company aims for net zero GHG emissions by 2050, primarily through reductions and some offsets for hard-to-abate emissions[128]. - In 2023, the company achieved a 9% reduction in injuries compared to 2022, with an 18% decrease in Lost Time Injuries (LTIs) and a 25% decrease in Restricted Duty Injuries[104]. Debt and Liquidity - The company reported a debt of $4,726 million as of December 31, 2023, a 1% decrease from the previous quarter[27]. - Barrick's liquidity profile is impacted by outstanding debt balances, with a primary source of liquidity being operating cash flow, which is dependent on projected future cash flows[171]. - The company has a $3.0 billion undrawn Credit Facility available to enhance liquidity, alongside options like asset sales and joint ventures[171]. Community Engagement - The company reported a community development spend of $15.4 million in Q4 2023 and a total of $43.2 million for the full year[111]. - Barrick has established Community Development Committees (CDCs) at all operating mines to identify local community needs and allocate funds accordingly[171]. Market Conditions and Economic Factors - The average gold price for 2023 was $1,941 per ounce, an 8% increase from the 2022 average of $1,800 per ounce, with prices ranging from $1,805 to an all-time high of $2,135 per ounce[138]. - The US Federal Reserve raised benchmark interest rates to a range of 5.25% to 5.50% by the end of 2023, with expected cuts in 2024 as inflationary pressures are forecasted to ease[150].