Barrick to Boost Throughput and Production at Lumwana With Expansion

Core Viewpoint - Barrick Gold Corporation is advancing the expansion of its Lumwana mine in Zambia, with a feasibility study expected to be completed by the end of this year and construction set to begin in 2025 [1][2]. Expansion Details - The expansion aims to transform Lumwana into a long-life, high-yielding operation, positioning it among the top 25 global copper producers and achieving Tier One copper mine status [2]. - The project includes doubling the throughput by twinning the existing process circuit, increasing plant throughput from 27 million tons (Mt) to 52 Mt, and doubling annual copper production from 120,000 tons (kt) to a life-of-mine average of 240 kt [2][4]. Mining Volume Projections - Mining volumes are projected to rise from 150 Mt in 2024 to 240 Mt by 2028, reaching 290 Mt annually from 2030 [3]. - This phased ramp-up is expected to enhance cost competitiveness, with operating cash flow and free cash flow projected to increase by up to 85% and 60%, respectively, based on long-term copper price consensus [3]. Financial Impact - The anticipated improvements are expected to add $1.7 billion to the mine's net present value (NPV), with an incremental internal rate of return (IRR) of 20% and a total mine IRR exceeding 50% [4]. - With long-term average copper prices estimated at $4.13 per pound, the initial capital outlay is expected to be recovered within nearly two years post-expansion [4]. - Cost projections indicate a decline, with the cost of sales and C1 cash costs estimated at $2.36 per pound and $1.85 per pound, respectively [4]. Engineering and Construction Timeline - Barrick has confirmed that process plant engineering is progressing, with major equipment vendors selected and orders placed for long lead equipment [5]. - Detailed engineering work is set to begin this quarter, with pre-construction preparation activities scheduled for next year [5]. - Commissioning of the new process plant is planned for the second half of 2027, followed by planned shutdowns to the existing circuit for upgrades [6]. Regulatory and Market Context - The permitting process is underway, with the Environmental and Social Impact Assessment submitted to Zambian authorities, and approval expected by the end of 2024 [6]. - Barrick's shares have increased by 22.6% over the past year, compared to a 35.2% rise in the industry [6].