PRESS RELEASE

Barrick Gold 2018 financial and operating results

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Wednesday, February 13, 2019

Press release

Barrick Reports 2018 Full Year and Fourth Quarter Results

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FEBRUARY 13, 2019

ALL AMOUNTS EXPRESSED IN U.S. DOLLARS UNLESS OTHERWISE INDICATED

  • Completed transformational merger with Randgold Resources Limited to create industry-leading gold company, effective January 1, 2019.
  • Generated annual revenues of $7.24 billion, net cash provided by operating activities ("operating cash flow") of $1.77 billion, and free cash flow1 of $365 million.
  • Increased returns to shareholders with a 33 percent increase in annual dividend.
  • Full-year gold production of 4.53 million ounces was within guidance, at a cost of sales2 of $892 per ounce, and all-in sustaining costs3 of $806 per ounce. Full-year copper production was 383 million pounds, also within guidance, at a cost of sales2 of $2.40 per pound, and all-in sustaining costs4 of $2.82 per pound.
  • Q4 gold production was 1.26 million ounces, at a cost of sales2 of $980 per ounce, and all-in sustaining costs3 of $788 per ounce. Q4 copper production was 109 million pounds, at a cost of sales2 of $2.85 per pound, and all-in sustaining costs4 of $2.95 per pound.
  • Q4 revenue was $1.90 billion, with operating cash flow of $411 million, and free cash flow1of $37 million.
  • Total attributable capital expenditures for 2018 were $1.41 billion, at the low end of guidance range.
  • Full-year corporate administration costs of $212 million were significantly below 2018 guidance.
  • The Company recorded a net loss attributable to equity holders ("net loss") of $1.55 billion ($1.32 per share) for 2018, including a net loss of $1.20 billion ($1.02 per share) in the fourth quarter, reflecting the impact of impairment charges recorded during 2018.
  • 2018 adjusted net earnings5 were $409 million ($0.35 per share), with Q4 adjusted net earnings5 of $69 million ($0.06 per share).
  • Total debt was reduced by 11 percent in 2018, with a year-end cash balance of $1.6 billion.6
  • Achieved a 9 percent improvement in total reportable injury frequency rate7, and reduced reportable environmental incidents by 12.5 percent.
  • Organic growth projects in Nevada and the Dominican Republic remain on schedule and in line with budget.
  • Added an initial inferred resource at Fourmile, at an average grade of 18.6 grams of gold per tonne.8
  • Declared proven and probable gold reserves of 62.3 million ounces8 as of December 31, 2018.
  • Declared proven and probable copper reserves of 10.6 billion pounds8 as of December 31, 2018.

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

Financial Results

First

Quarter

Second Quarter

Third

Quarter

Fourth

Quarter

Full Year

2018

Average realized gold price ($ per ounce)10

1,332

1,313

1,216

1,223

1,267

Net earnings ($ millions)

158

(94

)

(412

)

(1,197

)

(1,545

)

Adjusted net earnings ($ millions)5

170

81

89

69

409

Operating cash flow ($ millions)

507

141

706

411

1,765

Free cash flow ($ millions)1

181

(172

)

319

37

365

Net earnings per share ($)

0.14

(0.08

)

(0.35

)

(1.02

)

(1.32

)

Adjusted net earnings per share ($)5

0.15

0.07

0.08

0.06

0.35

Total Attributable Capital Expenditures ($ millions)11

326

332

346

409

1,413

Operating Results

Gold

First

Quarter

Second

Quarter

Third

Quarter

Fourth

Quarter

Full Year

2018

Production (000s of ounces)

1,049

1,067

1,149

1,262

4,527

Cost of sales applicable to gold ($ per ounce)2

848

882

850

980

892

Cash Costs ($ per ounce)3

573

605

587

588

588

All-in sustaining costs ($ per ounce)3

804

856

785

788

806

Copper

Production (millions of pounds)

85

83

106

109

383

Cost of sales applicable to copper ($ per pound)

2.07

2.45

2.18

2.85

2.40

C1 Cash Costs ($ per pound)4

1.88

2.10

1.94

1.98

1.97

All-in sustaining costs ($ per pound)4

2.61

3.04

2.71

2.95

2.82

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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