Barrick Mining Corporation Q2 FY2025 earnings call

Group Highlights

• Second quarter in line with plan, leveraging high gold price; production tracked guidance, second half set to deliver as年初 guidance. Earnings per share more than doubled; balance sheet strong, net cash position allowed share buybacks and dividend approval.

Operations

• North America: Nevada Gold Mines led, Goldrush ramp-up continues, Fourmile has significant gold discovery potential.
• Latin America and Asia Pacific: Pueblo Viejo improved production and unit costs, Zaldivar secured mining permit, Reko Diq project advanced.
• Africa and Middle East: Kibali had solid performance, Lumwana super pit expansion on track, exploration progress in the region.

Safety

• Year-to-date, Lost Time injuries down 50%, Total Injuries down 37% compared to same period last year, reflecting strong safety culture.

North America: Nevada Gold Mines led group performance with production and growth project progress; Goldrush ramp-up continues, Fourmile shows significant potential. Latin America and Asia Pacific: Pueblo Viejo improved gold production and unit costs, Zaldivar secured mining permit, Reko Diq project advanced. Africa and Middle East: Kibali had solid performance, Lumwana super pit expansion on track, exploration progress in the region. Financials: Adjusted earnings per share at $0.47, highest since 2013; net cash position, dividend approved.

Guidance

• Second half set to deliver higher volumes and lower costs in line with full-year guidance.
• Target to replace 30% of mined gold and copper organically by 2029.

Risks

• Loulo-Gounkoto arbitration process complexities; Malian authorities' actions complicate the exit process, and there's a risk of asset damage while seeking resolution.

Q: About Loulo-Gounkoto, can you give time lines around key milestones in the arbitration process?

A: Tribunal constituted, Malian authorities nominated member, first application for interim relief measures made, ongoing engagement through various programs.

Q: On divestments, what's the fit of Zaldivar in the portfolio?

A: Zaldivar secured mining permit extending operation life, part of rationalizing portfolio to focus on Tier 1 long-life assets.

Q: On Fourmile, how does it change operation scope?

A: Fourmile has growing resource and grade, aim to have scoping position by end of year, can replace feed in roasters, add life, and drop costs.

Q: On Loulo-Gounkoto balance sheet, book value situation?

A: Deconsolidated assets, wrote off assets and liabilities, did valuation of investment, gain from Donlin sale offset loss.

Q: On Saudi Arabia project, ownership and development?

A: 50-50 with Ma'aden, small high-grade copper mine, successful in adding life and production, expanding exploration partnership.

Q: On Lumwana electricity situation in Zambia?

A: Worked on power grid, wheeled power from neighboring countries, partnered with First Quantum to resynchronize power, expect to support expansion.

Q: On Pueblo Viejo recoveries and tailings?

A: Focus on throughput, stockpiles substantial, tailings facility construction scheduled for back end of decade.

Q: On Turquoise Ridge stockpiles?

A: Managing blend for recoveries, stockpiles have significant tonnage and grade.

Q: On Porgera ramp up?

A: Reoptimized Porgera, strong cash flow contribution, production outlook slightly more than first half.

Q: On Fourmile valuation and capital allocation?

A: Committed to $1 billion buyback strategy, disciplined capital allocation, performance dividend and buybacks used to take advantage of situation.

Q: On Canadian tax loss position?

A: Around $2 billion ordinary and capital losses, expire in around 20 years, useful in protecting sale proceeds.

Q: On Tanzania gold sale price?

A: Spot price, market-related, engagement with Tanzanian government for proper agreements.

Q: On Tongon conversations?

A: Processes controlled, do not disclose progress until closed, unprofessional to leak or disclose details.