Barrick(GOLD)2024-11-07 20:25Financial Data and Key Metrics Changes - Adjusted net earnings per share rose by 33% year-on-year, with free cash flow increasing by 24% year-on-year to 500 million, maintaining a sector-leading balance sheet [11][41] - Quarterly dividend was maintained at 95 million of shares were repurchased through buybacks [9] Business Line Data and Key Metrics Changes - Gold production was consistent with the previous quarter, while copper production increased by 12% quarter-on-quarter with reduced costs [10][23] - Higher margins in gold operations were driven by increased gold prices and cost discipline [8] - The ramp-up of the Pueblo Viejo plant resulted in a 23% increase in quarterly production and reduced unit costs [23] Market Data and Key Metrics Changes - The gold price continues to reach record highs, influencing the company's performance positively [4][42] - Global gold demand is projected to reach record levels, driven by the return of Western investors into gold via ETFs [42] Company Strategy and Development Direction - The company is focused on organic growth without the need for mergers or acquisitions, emphasizing strict value investment criteria for external opportunities [5][6] - Barrick aims to achieve a 30% growth in gold equivalent ounces from existing assets while continuing to advance growth projects [39] - The company is committed to sustainable mine closure, having reduced associated closure liabilities by over $1 billion, representing a 36% reduction [14][78] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a challenging year but expressed confidence in achieving production guidance at the lower end [7] - The company is focused on maintaining profitability and managing costs effectively, with a disciplined approach to capital allocation [86][102] - Management highlighted the importance of flexibility in mining operations to optimize production and costs [116] Other Important Information - The company is actively engaged in discussions with the Malian government to ensure a mutually beneficial agreement regarding economic benefits [120][122] - The Kibali mine is set to increase its renewable energy component from 81% to 85% with the commissioning of a new solar and battery storage plant [34] Q&A Session Summary Question: Production guidance and cost outlook for 2025 - Management indicated that production guidance for 2025 may see moderate downside due to ongoing ramp-up at Pueblo Viejo and Gold Quarry [44][45] Question: Sustaining CapEx profile and key projects - Management confirmed that sustaining CapEx is expected to decrease as the company addresses underinvestment in capital and focuses on efficiency [56][67] Question: Reserve replenishment and net increases - Management expressed confidence in strong reserve replenishment, particularly from Lumwana and Reko Diq, with North America tracking about 75% replacement of net depletion [70][72] Question: Environmental rehabilitation provisions - Management stated that Barrick is an industry leader in tailings management and is proactively managing closure liabilities [74][76] Question: Wage inflation and cost pressures - Management acknowledged wage inflation pressures and indicated that they are managing costs effectively through efficiency improvements and automation [102][123]