Barrick Mining has reported net income of US$811 million, or 47c per share, on revenues of $3.7 billion for the June quarter, a 119% increase over the prior year. However, rivals Agnico Eagle Mines (126%), Newmont (145%) and Kinross Gold (152%) saw their earnings rise more.
Barrick Mining has reported net income of US$811 million, or 47c per share, on revenues of $3.7 billion for the quarter to June 30, a 119% increase over the prior year.Rivals Agnico Eagle Mines , Newmont and Kinross Gold saw their earnings rise more.
The company produced 797,000oz of gold and 59,000t of copper in the quarter for a 968,220oz of gold equivalent, 14% less than a year ago but 6% more than in the March quarter.Its all-in sustaining cost fell by 4% in the quarter to $1684/oz, giving it an AISC margin of 48.7%, some $1596/oz.Barrick said gold and copper production were in line with guidance, with copper tracking towards the upper end of the full-year range. It is guiding for the production of 3.15-3.5Moz of gold and 200,000-230,000t of copper.The company generated free cash flow of $395 million, and finished the quarter with $4.8 billion in cash and $4.7 billion in debt.The company increased its quarterly dividend from 10c per share to 15c per share, with a 5c per share performance dividend.Through June 30, Barrick has returned $753 million to its shareholders, including $342 million in dividends and $411 million via stock repurchases."Q2 was another quarter where Barrick delivered on all fronts. We're growing production, lowering costs and advancing the industry's most exciting pipeline of gold and copper projects," said Barrick chief executive Mark Bristow.Production at the Nevada Gold Mines joint venture in Nevada, USA, increased by 11% from the March quarter, driven by operational improvements.At Pueblo Viejo in the Dominican Republic, production increased 28%, driven by increased throughput and debottlenecking activities. Copper production was 34% higher due to improved mining rates at Lumwana in Zambia.Barrick said it has drilled more than 34,000m at its Fourmile deposit in Nevada, USA, this year. The deposit has the potential to double existing resources by year's end, and 43 more holes must be completed this year to cover the potential."We expect north of 16gpt after dilution at Fourmile and feel we will easily get past doubling the resources. It is topped by a big intrusive cap and silicification of the rocks with substantially different rock mechanics that give us whole core drill intersections. This is a significant asset and has the potential to be up there with the same value as our share of Newvde Gold Mines," Bristow told Mining Journal.Mark Bristow speaks to Mining Journal | Credits: Barrick MiningAfter the resource update, drilling will likely advance to infill drilling from underground to fill in the potential."We have done work to bring development into the ore bodies as infill holes from surface is very expensive. Drilling from underground will save us $500-600 million," said Bristow.At Nevada Gold Mines , the company launched what it called a pioneering partnership with Komatsu to elevate workplace safety and enhance operational efficiency. This partnership will see NGM automate its fleet of 300t and 230t haul surface trucks."This will be on a 5G network, which is the deal for automation on big trucks. We will start with four trucks on short-term backfill on the Cortez Hill open pit closure, and then roll out as we prove the concept. One place that automation can pay for itself is in the US because of the availability of labour and its cost," said Bristow.Bristow said it is good to see the Trump administration working to improve federal permitting processes and reduce the possibility of litigation."Permitting at the state level has been very efficient in Nevada. Seeing improvement in the federal process is good for mining. No one has shortcut the regulations, which are good, and feature best practice standards. During the Biden administration, we permitted Gold Rush and Robertson afterwards.""In Trump's last term, the Secretary of the Interior started this initiative to streamline permitting, particularly on public land"."Under the new regulations, you are excluded from litigation if you don't participate in the public engagement about a mining project. If you participate, your objections can be assessed. This is good news for everyone," said Bristow.DivestmentEarlier in August, Barrick announced it would sell its Alturas gold-silver project in Chile's El Indio Belt to Boroo for US$50 million in cash and a 0.5% net smelter return royalty. Bristow has said that the company will not pay a premium to acquire another company or asset, yet its divestments appear to be made at a discount.Alturas' price was $22.7/oz of indicated resources, or $8.6/oz for each ounce of the global resource.In April, Barrick agreed to sell its 50% interest in the Donlin gold project in Alaska, US, to Paulson Advisers and Novagold Resources for US$1 billion in cash, equivalent to $30 per share. In 2021, Barrick sold Lagunas Norte in Peru to Boroo for $81 million, or less than $20/oz of resources."There is no better time to deal with non-core assets than in a rising gold price. Non-core does not mean the asset is not viable, but that contingent and ongoing liabilities are increasing, while its contribution to Barrick's bottom-line value is decreasing.The rising gold price has unlocked marginal reserves, which is why some M&A activities have created value. They were done at the margin and the gold price went up substantially. A good example is Lagunas Norte, where Boroo has done an excellent job reestablishing that mine," said Bristow.In Chile, Barrick retains a 50% JV interest in the Zaldivar mine, a JV interests in the Norte Abierto project and the Pascua Lama project, which is now called El Alto."We have completed a PEA on El Alto and are engaged in public consultation.""We have rebuilt our reputation with the Chileans. We have settled our historical liabilities, such as the VAT issues around Zaldivar, and other things related to Pascua, and have no more liabilities there. At El Alto, we are permitting to start the next phase of drilling. The indications are to have north of 10Moz, but we need new drill holes into the model," said Bristow.MaliIn June, Barrick confirmed that an arbitration process before the International Centre for Settlement of Investment Disputes was initiated against Mali, having failed to reach an agreement with the government to restart operations at Loulo-Gounkoto."The tribunal has been appointed and Mali is participating.""We have filed for interim relief to protect the asset so it is not compromised, and we are waiting for the results. We still have communication and are constantly working to keep dialogue open and progress things, as it is always better to settle out of court," said Bristow.Barrick has a history of turning to international arbitration to reach agreements with host governments. It has previously done so with Mali, Pakistan, Papua New Guinea and Tanzania.The value of shares in Barrick Mining has increased by 35% over the past year. They are trading at $23.34, valuing the company at $40.3 billion.
Loulo-Gounkoto Alturas Pascua Lama El Alto Zaldivar Norte Abierto Lagunas Norte Donlin Gold Rush Fourmile
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