Barrick(US:GOLD)2021-09-14 18:48Summary of Barrick Gold Corporation Conference Call Company Overview - Company: Barrick Gold Corporation (NYSE:GOLD) - Event: Gold Forum Americas 2021 - Date: September 14, 2021 - Participants: Mark Bristow (President & CEO), Jackie Przybylowski (BMO Capital Markets) Key Industry Insights - Discipline in Growth: The gold industry has shown some discipline in maintaining free cash flows during high gold prices, but concerns remain about long-term sustainability if prices fall [3][5] - Gold Replacement Issues: The industry has not replaced the gold mined since 2000, achieving only about 50% replacement on aggregate, with grades now at half of what they were in 2000 [3][4] - Consolidation Opportunities: There is frustration over missed opportunities for consolidation in the industry, especially during the recent bull market [4][5] Company Strategy and Performance - Capital Return Strategy: Barrick is considering a new capital return strategy, similar to that of Randgold, focusing on sustainable returns and potential consolidation in the industry [6][9] - Dividend Policy: The company has a base dividend calculated at a long-term gold price of $1,200, positioning itself favorably compared to peers [8][9] - Exploration Focus: Barrick is focusing on greenfield projects, particularly in Nevada and Egypt, with significant potential for new discoveries [12][13][14] Operational Highlights - Cost Management: Barrick has achieved over $200 million in supply chain benefits and is managing cost pressures effectively [16] - Workforce Efficiency: The company is working on improving workforce efficiency and reducing general and administrative costs [18][19] - Community Engagement: Barrick is committed to transparency and community engagement, particularly in its operations at Pueblo Viejo, which contributes significantly to the country's corporate tax revenue [21] Geographic Exposure - Global Operations: Barrick has a well-distributed geographic presence, with ongoing projects in Papua New Guinea, Chile, Argentina, and Peru, while also looking to strengthen its position in Canada [23][24] Additional Considerations - Exploration Challenges: The gold industry has faced challenges in exploration, with a need for renewed focus on high-quality production areas [14] - Future Outlook: The company aims to build real value during uncertain times by exploring new opportunities and maintaining a strong operational foundation [23][24]