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Barrick Reports 2018 Full Year and Fourth Quarter Results
FEBRUARY 13, 2019
ALL AMOUNTS EXPRESSED IN U.S. DOLLARS UNLESS OTHERWISE INDICATED
TORONTO - Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) ("Barrick" or the "Company") today reported fourth quarter and full year results for the period ending December 31, 2018. In 2018, our operations produced 4.53 million ounces of gold, at a cost of sales of $892 per ounce, and all-in sustaining costs3 of $806 per ounce-among the lowest of the senior gold peers.9
The Company generated annual revenue of $7.24 billion, operating cash flow of $1.77 billion, and free cash flow1 of $365 million. In 2018, our focus on capital discipline allowed us to increase investments in organic growth and significantly reduce our debt, while also increasing returns to shareholders.
Summarized 2018 Financial and Operating Results
Average realized gold price ($ per ounce)10
Net earnings ($ millions)
Adjusted net earnings ($ millions)5
Operating cash flow ($ millions)
Free cash flow ($ millions)1
Net earnings per share ($)
Adjusted net earnings per share ($)5
Total Attributable Capital Expenditures ($ millions)11
Production (000s of ounces)
Cost of sales applicable to gold ($ per ounce)2
Cash Costs ($ per ounce)3
All-in sustaining costs ($ per ounce)3
Production (millions of pounds)
Cost of sales applicable to copper ($ per pound)
C1 Cash Costs ($ per pound)4
All-in sustaining costs ($ per pound)4
Our Nevada growth projects at Cortez, Goldrush, and Turquoise Ridge continued to advance according to schedule and within budget, underpinning the next generation of profitable production from this core region for Barrick. Exploration drilling continued to intersect high-grade mineralization at these properties, demonstrating the significant untapped geological potential of Barrick's land position in Nevada, and supporting the evaluation of increasing processing capacity in the region. We also advanced studies and test work in support of an expansion to increase throughput at the Pueblo Viejo mine in the Dominican Republic by 50 percent, with positive initial results.12
Reflecting our commitment to shareholder returns, we increased our annual dividend by 33 percent, from 12 cents per share in 2017, to 16 cents per share in 2018. In addition, we continued to strengthen our balance sheet with the repurchase of $629 million in outstanding notes in July, bringing the Company's total debt repayments to roughly $10 billion over the past five and a half years.
During 2018, Barrick also strengthened its partnership with Shandong Gold Group Co., Ltd., one of China's leading mining companies. In July, the two companies announced an enhanced strategic cooperation agreement, focused on evaluating the Lama project in Argentina, and strengthening technical collaboration between the Barrick and Shandong teams. In September, Barrick and Shandong signed a mutual investment agreement, under which each Company agreed to purchase up to $300 million of shares in the other, further deepening the partnership.
The completion of Barrick's transformational merger with Randgold on January 1, 2019, created an industry-leading gold company with a common vision for long-term value creation. It significantly strengthened Barrick's position across key metrics relative to the senior gold peer group13, including: ownership of five of the world's top 10 Tier One14 gold assets, and two potential Tier One gold assets under development; the lowest total cash costs15; high-quality gold reserves; and extensive land positions in many of the world's most prolific gold districts, positioning the Company for sustainable growth.
As we move forward as one team, Barrick's vision is to be the world's most valued gold mining business. To achieve this, the Company will focus on optimizing our existing operations, pursuing new opportunities that meet strict investment criteria, and developing them with disciplined efficiency. By doing so, we aim to deliver sustainable returns to our owners, and real benefits to our partners, host countries, and communities.
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