Golden Mile Resources is a project development and mineral exploration company, with a focus on growing the company with a multi asset and multi commodity strategy through advancing core projects, acquisition of high-quality assets, and tactical alliances with joint venture partners. Golden Mile’s value proposition is driven by a highly experienced leadership team with proven expertise across the resources sector from exploration to development and production.
Golden Mile Resources (ASX:G88) is a Western Australia-based resource company with critical metals exploration projects in Western Australia and Arizona, USA. The company’s near-term focus is on advancing its newly acquired Pearl copper project in Arizona, located in the world-class Laramide Porphyry Belt. The company’s longer term focus includes the advancement of the Quicksilver nickel-cobalt project, located in Western Australia, which has an indicated and inferred resource of 26.3 Mt @ 0.64 percent nickel and 0.04 percent cobalt.
Golden Mile is also focused on strategic alliances with joint venture partners to maintain exposure without expense on its other assets, such as its Leonora JV (Patronus Resources earning up to 80 percent) project and Gidgee JV (Gateway earning up to 80 percent). Concurrently, the company’s leadership team will consider potential divestment or JVs of its non-core assets, and also aims to build up a new portfolio of high-quality multi-element assets, from discovery to development.
Overall, the company is focused on creating shareholder value, supported by a management team and board with a proven track record of exploration, development and production success. Led by managing director Damon Dormer, a mining engineer with over 26 years of experience, Golden Mile is well positioned to execute its strategy moving forward.
Golden Mile secured the Pearl copper project in August 2024. Located in Arizona, the asset hosts more than 50 artisanal copper workings and shares similar geological characteristics to the San Manuel-Kalamazoo and Pinto Valley porphyry copper mines. The project exhibits widespread surface alteration highlighted by rock chip samples of 7.3 percent copper, 0.43 percent molybdenum, 19.9 percent lead, 4.9 percent zinc and 360 g/t silver.
The most significant working within the project area are the Pearl and Ford mines. The Pearl mine is located on the north-western portion of the Pearl project within the Odyssey prospect. It produced up to 60,000 tons of ore containing copper oxide and sulphide, lead, silver and gold from largely artisanal workings from 1915 to 1941 (Force, 1997).
Historical records from the Ford mine, located within the Pearl copper project mine claims, have reported lead assays from 5.7 percent to 31.3 percent, copper assays from 5.8 percent to 10.6 percent and that gold increases in the deeper levels from 0.01 oz to 0.54 oz (16.7g/t) (Baird, 1942).
Significant upside from organic exploration exists given Pearl’s geographic location, situated in the heart of the world-class Laramide Porphyry Copper Belt and 1 km of the San Manuel mine (historic production of 4.7 Mt) that has been operating for 44 years.
A tier 1 mining jurisdiction, Arizona represents approximately 70 percent of domestic US copper production. The Pearl project was historically mined from 1915 to 1941.
In 2018, Golden Mile announced an indicated and inferred maiden resource estimate of 26.3 Mt @ 0.64 percent nickel and 0.04 percent cobalt. Metallurgical testwork completed in 2023 significantly improved understanding of the unique saprolitic mineralisation at the project and a potential pathway to production.
The company has also identified a customized multi-products flowsheet to produce nickel-cobalt and iron-nickel-cobalt-chromium concentrates, as well as industrial products. The process would require low energy using the physical attributes of the free digging ore.
A mining engineer with over 26 years of experience, including 15 years in mine management and executive roles, Dormer has worked in studies, projects, operations and innovation across Australia, USA, Papua New Guinea and Africa. Dormer has had considerable success turning around mining projects and studies resulting in the construction of multiple mines in Africa, as well as significant operational success in Australia. He has also been heavily involved in mining innovation and has personally developed techniques and strategies for the mining industry. Dormer holds a Bachelor of Engineering in Mining from the Western Australian School of Mines and has held numerous statutory appointments across the African and Australasian regions.
Francesco Cannavo is an experienced public company director with significant business and investment experience working with companies operating across various industries, including in particular mining exploration companies. Cannavo has been instrumental in assisting several listed and unlisted companies achieve their growth strategies through the raising of investment capital and the acquisition of assets. He is currently a non-executive director of Western Mines Group (ASX:WMG) and Stemcell United (ASX:SCU).
Grant Button is a qualified accountant and has significant commercial management and transactional experience. He has over 30 years of experience at a senior management level in the resource industry. He has acted as a managing director, executive director, finance director, CFO and company secretary for a range of publicly listed companies. Most recently, Button has been managing director of Magnum Mining & Exploration (ASX:MGU), and was previously the position executive director of Sylvania Platinum.
Michele Alessandro Bina is a former investment banker based in Hong Kong and is an adviser to Beijing Gage, the parent company of Gage Resource Development (Gage). Bina joins the existing board of Alice Queen as a non-executive director as the nominee of Beijing Gage Capital Management (Beijing Gage).
Justyn Stedwell has over 17 years of experience as a company secretary of ASX listed companies and has also served as a non-executive director on several ASX listed company Boards. He holds a Bachelor of Commerce from Monash University, a graduate diploma in accounting from Deakin University and a graduate diploma in applied corporate governance from the Governance Institute of Australia.
Martin Dormer is an exploration geologist with over 27 years’ experience in mineral exploration and resource development, from greenfields through to feasibility. His experience spans multiple commodities including precious, base metal, and industrial metals across a wide range of geological settings and jurisdictions. Dormer has worked in multiple locations around the globe, including Australia, Asia, and Africa in senior management positions in the private and public sectors. He has also operated a private geological consultancy, Unearthed Elements, for the past 14 years. Dormer is a graduate of the WA School of Mines in Mineral Exploration and Mining Geology and is a member of the Australian Institute of Geoscientists and the Australian Institute of Mining and Metallurgy.
HIGHLIGHTS
Photo 1: Odyssey Prospect rock chip - Photo 2: Ford Prospect Alteration
Overview
A recently completed field trip, undertaken as part of the due diligence, has confirmed the very high prospectivity of the project area for company-making copper resources.
Figure 1: Significant Copper Mines and Projects in Arizona USA
This field examination, undertaken in late July, and while only preliminary in nature, has delineated the Odyssey and the Ford prospects within the Pearl project area as immediate highly prospective, exploration drill targets.
At Odyssey, a sub outcropping multiple vein copper target with surface mineralised widths up to five metres and a strike length of around 800 metres has been mapped. This prospect hosts the historic largely artisanal Pearl working’s where historical records indicate around 60,000 of ore containing copper oxide and sulphide, lead, silver, and gold was produced from 1915 to 1941 (Force, 1997).
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This article includes content from Golden Mile Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Dynasty Gold stands apart from its peers, offering a compelling investment value proposition, given its portfolio of brownfield, high-grade gold assets with millions of dollars in exploration expenditures, driven by an expert management and technical team.
Dynasty Gold (TSX-V:DYG) is a Canadian mineral exploration and development company with a compelling, high-grade gold project located in Northwest Ontario, Canada. The 100 percent owned Thundercloud project is a highly prospective property with significant exploration upside backed by extensive, historical exploration data. The property was acquired from Teck Resources in 2021, with $10 million in previous exploration expenditure and an NI 43-101 resource estimate completed in December 2021.
A brownfield project, Thundercloud represents a lower-risk investment opportunity potentially delivering huge value as exploration continues and the resource is expanded and upgraded. Previous drilling at the property has returned high-grade gold assays, including 73.5 m of 8.4 g/t, 34 m of 6.5 g/t, 12m of 11.0 g/t, and 14.8m of 7.14 g/t.
Since taking over the project, Dynasty has completed 7,000 meters of drilling at Thundercloud, which has resulted in considerable resource increase from 187,000 ounces inferred to 232,000 ounces measured and indicated at a high grade of 8.04 g/t gold at 3.03 g/t cut-off (internal estimate, not NI 43-101 compliant). The project also suggests a potential for open-pit mining, as more than 90 percent of the drill holes to date are less than 250 meters and it opens at depth. Despite the impressive drill results to date, about 90 percent of the property still has seen very limited drilling, presenting a tremendous opportunity for further discoveries.
Dynasty’s secondary exploration project, Golden Repeat, is located within the Midas Gold Camp in Elko County, Nevada. The project is drill-ready with permits in place.
Established in 2000 and Dynasty Gold is led by a highly experienced management and technical team setting the company on a strategic path for success. Max Baker, the former chief geologist for Newcrest Mining with over 35 years of experience in greenfield and brownfield exploration, is the lead geologist. A tightly held share capital structure with approximately 61 million issued shares, more than 40 percent of the company is owned by insiders and long-term shareholders, including Rob McEwen, Dynasty’s largest shareholder.
The Thundercloud gold project is Dynasty Gold’s flagship asset, located in the Archean Manitou-Stormy Lakes Greenstone Belt in Ontario, Canada. The property spans 2,250 hectares and is part of the Wabigoon Subprovince, which hosts several significant gold deposits. The gold mineralization at Thundercloud is primarily associated with shear zones and quartz-carbonate veins, typical of orogenic gold deposits. These types of deposits are known for their size and high-grade gold potential. The property is 47 km from Dryden, Ontario, and within a 4-hour drive from Winnipeg or Thunder Bay airport.
*Internal resource estimate, not NI 43-101 compliant
Previously owned by Teck Resources, the project has been de-risked with about $10 million dollars spent on drilling and exploration in the 2000s. Dynasty has benefited from this vast historical dataset and has been able to expedite its exploration and advance it to the current resource stage in a span of two years.
Historical drilling and exploration at Thundercloud – consisting of 87 drill holes for approximately 16,793 meters of drilling – have identified several zones of gold mineralization, with high-grade intercepts suggesting the presence of an extensive gold system. Drill holes have intercepted mineralization at depths of up to 350 m below surface. Gold mineralisation has been defined along a strike length of 1.5 km east-west trend in the Pelham Zone. The West Contact Zone is untested.
During the 2022 and 2023 drilling seasons the company successfully increased its non-compliant internal resource estimate to approximately 232,000 oz gold at 8.04 g/t. At 2.14 g/t, the project hosts 439,000 oz gold (this is an internally generated new resource model, not NI 43-101 compliant). Nearly 2,200 meters of the 4,000 meter 2024 drill program have been completed. Assays are pending as further drilling continues on the property. The company aims to have an updated NI 43-101 Resource Estimate by the end of 2024.
Thundercloud’s high-grade mineralization sets it apart from neighbouring gold projects with relatively lower grade gold intercepts, including NexGold’s Goliath and Goldlund gold projects which has a resource of 1.5 Moz of gold at 1.5 g/t, and 2.3 Moz gold at 1.5 g/t, respectively. NexGold’s similar market valuation, highlights the market’s underappreciation of Dynasty Gold’s advanced-stage, higher-grade asset.
Thundercloud comprises two main zones – Pelham and West Contact – with planned follow-up drilling in these zones expected to take place in September-October 2024.
Pelham Zone
The Pelham Zone is the most advanced exploration target within the Thundercloud project. It is 47 m south-east of Dryden in Northwest Ontario. It has been the focus of much of the drilling and exploration efforts due to its substantial high-grade, open-pit gold potential. During the 2022 exploration season, the discovery hole DP22-03 returned 8.42 g/t over 73.5 m including 6.5 m of 72.2 g/t. The zone is characterized by a series of east-west trending shear zones containing quartz-carbonate veins with visible gold. These shear zones are hosted within mafic metavolcanic rocks, which have undergone significant hydrothermal alteration.
West Contact Zone
The West Contact Zone is located 1 km to the southeast of the Pelham Zone. Limited drilling in the West Contact Zone has encountered gold mineralization associated with quartz veins and brecciated zones, with grades comparable to those found in the Pelham Zone. Further exploration is planned to expand on these initial findings. A rock chip sampling program was completed in the West Contact zone, an area immediately to the south of where Teck’s trenching data returned 8.02 g/t gold over 39 meters. The assay results from the company’s trenching program extended the mineralization by 30 meters. Total surface mineralization is 69 meters averaging 5.85 g/t gold.
Ivy Chong has held senior executive positions in the mining and oil and gas industries since 1996. She was credited for closing several option and joint venture agreements with Teck, AngloGold Ashanti, Azimut, Avocet Mining, and others. Chong has assisted multiple companies with their IPOs and raised capital for resource companies in Asia, Europe and North America. Prior to entering the resource industry, she worked for the Hong Kong Stock Exchange and Deloitte and Touche, LLP.
Roman Shklanka is an explorationist with over 45 years of international experience in the mining industry. His past positions include, chairman of Canico Resources, which was acquired by CVRD (Vale) in 2005; chairman of Sutton Resources, acquired by Barrick Gold Corporation; and vice-president of exploration for Placer Dome. He was responsible for the acquisition and exploration of numerous major mines, among them the Australian Granny Smith gold mine, Osbourne copper mine and the Kidston gold mine. He has received a number of achievement awards and was inducted into the Canadian Mining Hall of Fame in 2009.
Larry Kornze brings more than 30 years of international gold exploration experience. Kornze was credited with the discovery of Barrick's 40 million ounce gold deposit at the Betze Mine on the Carlin Trend in Nevada, in the late 80s. He was part of Barrick's team responsible for the discovery of the Miekle, Deepstar, Screamer and Rodeo deposits in Nevada. Kornze has held positions with Newmont and Getty Mining in North America, prior to joining Barrick Gold.
Richard Redfern is a certified professional geologist and “qualified person” under NI 43-101 and a consultant with 35 years of exploration and mining industry experience worldwide. He held positions as senior exploration geologist with Barrick Gold in Mexico, VP Exploration for Goldstake Explorations in South Dakota and Australia, and has worked for Homestake Mining in the western United States. Redfern has extensive exploration experience in gold and porphyry-type prospects in the southwestern US, Mexico and British Columbia. He was instrumental in the recent discovery of the Moly Dome molybdenum-rhenium-gold-silver porphyry deposit in northern Nevada.
Read on for more on gold's Q3 price drivers and what experts see coming in the months ahead.
Gold started Q3 at US$2,332.30, quickly moving higher to set a new record of US$2,468.30 on July 17.
Its momentum was fueled by speculation that the Fed might cut rates at its July 30 to 31 meeting.
At the time, Fed Governor Christopher Waller suggested the time for cuts was “drawing closer,” but added that there was still uncertainty, stopping short of saying a reduction would come at the July meeting. Ultimately the Fed didn't end up cutting then, citing the need for more data indicating that inflation was sustainably moving toward 2 percent.
Gold finished the month at US$2,445.70 on July 31.
Gold price, Q3 2024.
Chart via Trading Economics.
The gold price gained at the start of August as a nonfarm payroll report out of the US boosted market watchers' expectations that the Fed's rate cut would come in September. The report indicated that the labor market was weakening faster than expected, and by August 15 gold had breached the US$2,500 mark for the first time.
Gold set yet another new price record of US$2,525.30 on August 27, not long after Powell gave his annual address at the Jackson Hole Economic Symposium, held in Wyoming from August 22 to 24.
He gave his most clear indication that a rate cut was on the way, saying, “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
With a lackluster August US jobs report released on September 6 and inflation nearing 2 percent, analysts' discussions turned to not when a rate cut would occur, but how large it would be.
The question was answered after the Fed's September 17 to 18 meeting, when officials made the decision to slash rates by 50 basis points. In the immediate aftermath, the gold price saw increased volatility; however, the precious metal stabilized and then gained momentum, pushing through the US$2,600 threshold.
Gold set a new record of US$2,672.51 on September 26 before closing the quarter at US$2,635.70. It has seen further gains at the start of Q4, trading in record territory before markets closed on October 16.
While lower rates tend to be positive for gold, the biggest story of the year is still central bank buying.
“I expect the Fed’s rate-cutting cycle to be good for gold, but central bank buying has been and remains a major factor," Lobo Tiggre, CEO of IndependentSpeculator.com, said in an email to the Investing News Network (INN).
That position is supported by data from the World Gold Council. It indicates that purchases from central banks reached record levels in the first half of the year, coming in at 483 metric tons.
This was despite a halt in buying by the People’s Bank of China (PBoC) at the end of Q2. While the PBoC has yet to resume purchases of the precious metal, it granted several regional banks new import quotas in August.
In an email to INN, David Barrett, CEO of global brokerage firm EBC Financial Group (UK) Ltd., also suggested that Fed rate cuts are currently less of a factor for gold than central bank buying. “I still see the global central bank buying as the main driver — as it has been over the last 15 years. This demand removes supply from the market. They are the ultimate buy-and-hold participants and they have been buying massive amounts,” he said.
Additionally, Barrett suggested that even if China's gold buying has slowed down, Turkey, India and Kazakhstan have all continued to purchase at elevated levels, taking up some of the slack.
Both Tiggre and Barrett added that geopolitical uncertainty, especially escalating tensions in the Middle East, could be a driving force that pushes investors toward gold as they seek more security in their portfolios.
With gold continuing to hit record-high prices, Barrett expressed surprise that there hasn’t been more movement on the M&A front, but offered some potential reasons why it's taking time to kick in.
“I suspect the main reason is the massive rise in production costs and higher interest rates — making capital expenditure in a capital-intensive sector a large drag on the share prices," he explained. "Labor, energy and raw material costs have all risen significantly. Maintaining a mine requires huge upfront investment — the rise in global interest rates, from historically very low levels, means the higher returns from gold prices are still being eaten into by the running costs."
That said, M&A activity in the sector has begun to heat up to some extent. In August, South Africa-based Gold Fields (NYSE:GFI,JSE:GFI) announced plans to acquire Canada’s Osisko Mining (TSX:OSK) for C$2.16 billion. The move would consolidate the Windfall project in Quebec, Canada, which is currently a 50/50 joint venture between the two companies. The deal is expected to be finalized when Osisko shareholders meet in October.
This was followed by the September news that fellow South African gold miner AngloGold Ashanti (NYSE:AU) has entered into an agreement to purchase UK-based Centamin (TSX:CEE,LSE:CEY) for US$2.5 billion.
Tiggre sees an increase in M&A activity as inevitable. “Producers that haven’t been exploring much need to buy viable deposits or they’ll mine themselves out of existence. And historically, yes, that trickles down to exploration,” he said.
Presenters at the latest Metals Investor Forum in Vancouver, BC, said senior producers will first look to companies that already have assets in production or are close to producing, maximizing cashflow before moving on to riskier plays in exploration. However, eventually they may become more interested in junior miners.
This point was echoed by Barrett. “I suspect we will see more consolidation in the sector. The miners with the larger, better-funded balance sheets will look to take advantage of merging operational costs,” he said.
Both Tiggre and Barrett see gold continuing to rise through to the end of the year.
“It 'feels' to me that the momentum is growing stronger. Despite the nominal all-time highs this year, the market doesn’t feel 'toppy' yet. So, I expect higher (prices) this year, and probably next year, depending on whether or not gold gets ahead of itself this year,” Tiggre said in his email to INN.
He noted that conflicts in the Middle East and between Russia and Ukraine could boost gold, but also noted that the upcoming US election could provide a leg up for the metal. “Both mainstream candidates' promises are inflationary. That’s bullish for gold, whoever wins. When the election is contested — which it almost certainly will be — it depends on whether the situation boils over into major social unrest. That would likely scare people into safe-haven assets like gold. Short of that, the damage to the social fabric of the US will take longer to play out,” Tiggre explained.
Barrett noted that he sees gold being driven not by speculative interest, but by demand from buy-and-hold players. That suggests the market “has reached a point where any selling or hedging is simply swamped.”
He added that gold's current price level poses a challenge for the average trader.
“Having the confidence to continue to buy after the huge moves seen at these levels is hard. We have seen much more two-way flow since we broke US$2,400; trader confidence to buy and hold is lower,” he said.
Like Tiggre, Barrett anticipates considerable risk in the coming months. “From a market perspective, the election could affect all risk buckets in a material manner. The direction of global conflicts, particularly in the Middle East and Ukraine, seems to hinge on who is the next president. The same could be said for political relationships, especially with China, progress on trade, tariffs and economic stimulus continuing,” he explained via email.
Ultimately, Barrett sees a higher gold price coming as geopolitical and economic uncertainty leads to increased pockets of volatility and demand from central banks continues to support the market.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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All amounts expressed in US dollars
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) ("Barrick" or the "Company") today reported preliminary Q3 production of 943 thousand ounces of gold and 48 thousand tonnes of copper, as well as preliminary Q3 sales of 967 thousand ounces of gold and 42 thousand tonnes of copper. The Company continues to expect a materially stronger Q4 to deliver 2024 production within the range of its full year gold and copper guidance.
The average market price for gold in Q3 was $2,474 per ounce while the average market price for copper in Q3 was $4.18 per pound.
Preliminary Q3 gold production was in line with Q2. Pueblo Viejo delivered a 23% sequential improvement on continued plant optimization, whilst North Mara had a stronger quarter driven by higher grades. At Carlin, the Gold Quarry roaster expansion, completed during a Q3 shutdown, is expected to underpin higher throughput and recoveries in Q4. Turquoise Ridge improved versus Q2, with a stronger underground mining performance more than offsetting a planned shutdown of the Sage autoclave in Q3. At Kibali, underground development during Q3 opened up access to more high-grade underground headings, which are expected to be further supplemented by higher open pit grades and volumes to drive a stronger performance in Q4. Compared to Q2, Q3 gold cost of sales per ounce 1 is expected to be 1% to 3% higher, total cash costs per ounce 2 is expected to be 3% to 5% higher and all-in sustaining costs per ounce 2 are expected to be 0% to 2% higher, in part reflecting higher royalties from the higher gold price received.
As expected, preliminary Q3 copper production was higher than Q2, driven primarily by higher grades and recoveries at Lumwana following improved ore access driven by the ramp up in stripping activities in Q2, with further improvements expected in Q4. Compared to Q2, Q3 copper cost of sales per pound 1 is expected to be 5% to 7% higher, C1 cash costs per pound 2 are expected to be 13% to 15% higher, while all-in sustaining costs per pound 2 are expected to be 2% to 4% lower, primarily due to a decrease in capitalized waste stripping at Lumwana.
Barrick will provide additional discussion and analysis regarding its third quarter 2024 production and sales when the Company reports its quarterly results before North American markets open on November 7, 2024.
The following table includes preliminary gold and copper production and sales results from Barrick's operations:
| Three months ended September 30, 2024 | Nine months ended September 30, 2024 | |||
| Production | Sales | Production | Sales | |
| Gold (attributable ounces (000)) | ||||
| Carlin (61.5%) | 182 | 183 | 589 | 592 |
| Cortez (61.5%) | 98 | 99 | 319 | 321 |
| Turquoise Ridge (61.5%) | 76 | 77 | 210 | 209 |
| Phoenix (61.5%) | 29 | 28 | 88 | 89 |
| Nevada Gold Mines (61.5%) | 385 | 387 | 1,206 | 1,211 |
| Loulo-Gounkoto (80%) | 144 | 135 | 422 | 412 |
| Pueblo Viejo (60%) | 98 | 96 | 259 | 257 |
| North Mara (84%) | 75 | 78 | 175 | 174 |
| Kibali (45%) | 71 | 77 | 229 | 230 |
| Veladero (50%) | 57 | 78 | 170 | 179 |
| Bulyanhulu (84%) | 37 | 37 | 124 | 121 |
| Hemlo | 30 | 28 | 104 | 105 |
| Tongon (89.7%) | 28 | 32 | 109 | 113 |
| Porgera (24.5%) | 18 | 19 | 33 | 31 |
| Total Gold | 943 | 967 | 2,831 | 2,833 |
| Copper (attributable tonnes (000)) | ||||
| Lumwana | 30 | 26 | 77 | 73 |
| Zaldívar (50%) | 10 | 10 | 29 | 28 |
| Jabal Sayid (50%) | 8 | 6 | 25 | 22 |
| Total Copper | 48 | 42 | 131 | 123 |
Third Quarter 2024 Results
Barrick will release its Q3 2024 results before market open on November 7, 2024. President and CEO Mark Bristow will host a live presentation of the results that day in London, UK at 11:00 EST/16:00 UTC, with an interactive webinar linked to a conference call. Participants will be able to ask questions.
Go to the webinar
US and Canada (toll-free), 1 844 763 8274
UK (toll), +44 20 3795 9972
International (toll), +1 647 484 8814
The Q3 2024 presentation materials will be available on Barrick's website at www.barrick.com .
The webinar will remain on the website for later viewing, and the conference call will be available for replay by telephone at 1 855 669 9658 (US and Canada toll-free) and +1 412 317 0088 (international toll), replay access code 8607451.
Enquiries:
Kathy du Plessis
Investor and Media Relations
+44 20 7557 7738
barrick@dpapr.com
Website : www.barrick.com
Technical Information
The scientific and technical information contained in this news release has been reviewed and approved by: Craig Fiddes, SME-RM, Lead, Resource Modeling, Nevada Gold Mines; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral Resource Management and Evaluation Executive (in this capacity, Mr. Bottoms is responsible on an interim basis for scientific and technical information relating to the Latin America and Asia Pacific region); and Richard Peattie, MPhil, FAusIMM, Mineral Resources Manager: Africa and Middle East—each a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects .
Endnote 1
Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in care and maintenance) divided by ounces sold (both on an attributable basis, based on Barrick's ownership share). Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis, based on Barrick's ownership share).
References to attributable basis means our 100% share of Hemlo and Lumwana, our 89.7% share of Tongon, our 84% share of North Mara and Bulyanhulu, our 80% share of Loulo-Gounkoto, our 61.5% share of Nevada Gold Mines, our 60% share of Pueblo Viejo, our 50% share of Veladero, Zaldívar and Jabal Sayid, our 24.5% share of Porgera and our 45% share of Kibali.
Endnote 2
"Total cash costs per ounce" and "all-in sustaining costs per ounce" are non-GAAP financial measures which are calculated based on the definition published by the World Gold Council ("WGC") (a market development organization for the gold industry comprised of and funded by gold mining companies from around the world, including Barrick). The WGC is not a regulatory organization. Management uses these measures to monitor the performance of our gold mining operations and its ability to generate positive cash flow, both on an individual site basis and an overall company basis.
Total cash costs start with our cost of sales related to gold production and removes depreciation, the non-controlling interest of cost of sales and includes by-product credits. All-in sustaining costs start with total cash costs and include sustaining capital expenditures, sustaining leases, general and administrative costs, minesite exploration and evaluation costs and reclamation cost accretion and amortization. These additional costs reflect the expenditures made to maintain current production levels.
We believe that our use of total cash costs and all-in sustaining costs will assist analysts, investors and other stakeholders of Barrick in understanding the costs associated with producing gold, understanding the economics of gold mining, assessing our operating performance and also our ability to generate free cash flow from current operations and to generate free cash flow on an overall company basis. Due to the capital-intensive nature of the industry and the long useful lives over which these items are depreciated, there can be a significant timing difference between net earnings calculated in accordance with IFRS and the amount of free cash flow that is being generated by a mine and therefore we believe these measures are useful non-GAAP operating metrics and supplement our IFRS disclosures. These measures are not representative of all of our cash expenditures as they do not include income tax payments, interest costs or dividend payments. These measures do not include depreciation or amortization.
Total cash costs per ounce and all-in sustaining costs per ounce are intended to provide additional information only and do not have standardized definitions under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not equivalent to net income or cash flow from operations as determined under IFRS. Although the WGC has published a standardized definition, other companies may calculate these measures differently.
"C1 cash costs per pound" and "all-in sustaining costs per pound" are non-GAAP financial measures related to our copper mine operations. We believe that C1 cash costs per pound enables investors to better understand the performance of our copper operations in comparison to other copper producers who present results on a similar basis. C1 cash costs per pound excludes royalties and production taxes and non-routine charges as they are not direct production costs. All-in sustaining costs per pound is similar to the gold all-in sustaining costs metric and management uses this to better evaluate the costs of copper production. We believe this measure enables investors to better understand the operating performance of our copper mines as this measure reflects all of the sustaining expenditures incurred in order to produce copper. All-in sustaining costs per pound includes C1 cash costs, sustaining capital expenditures, sustaining leases, general and administrative costs, minesite exploration and evaluation costs, royalties and production taxes, reclamation cost accretion and amortization and write-downs taken on inventory to net realizable value.
Barrick will provide a full reconciliation of these non-GAAP financial measures when the Company reports its quarterly results on November 7, 2024.
Cautionary Statements Regarding Preliminary Third Quarter Production, Sales and Costs for 2024, and Forward-Looking Information
Barrick cautions that, whether or not expressly stated, all third quarter figures contained in this press release including, without limitation, production levels, sales and associated costs are preliminary, and reflect our expected third quarter results as of the date of this press release. Actual reported third quarter production levels, sales and associated costs are subject to management's final review, as well as review by the Company's independent accounting firm, and may vary significantly from those expectations because of a number of factors, including, without limitation, additional or revised information, and changes in accounting standards or policies, or in how those standards are applied. Barrick will provide additional discussion and analysis and other important information about its third quarter production levels, sales and associated costs when it reports actual results on November 7, 2024. For a complete picture of the Company's financial performance, it will be necessary to review all of the information in the Company's third quarter financial report and related MD&A. Accordingly, readers are cautioned not to rely solely on the information contained herein.
Finally, Barrick cautions that this press release contains forward-looking statements with respect to: (i) Barrick's expected fourth quarter production and ability to deliver within the range of its full year gold and copper guidance; and (ii) costs per ounce for gold and per pound for copper.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known or unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information.
Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; the resumption of operations at the Porgera mine and expected ramp up of mining and processing in 2024; risks associated with projects in the early stages of evaluation, and for which additional engineering and other analysis is required; disruption of supply routes which may cause delays in construction and mining activities, including disruptions in the supply of key mining inputs due to the invasion of Ukraine by Russia and conflicts in the Middle East; whether benefits expected from recent transactions are realized; quantities or grades of reserves will be diminished, and that resources may not be converted to reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges, tailings dam and storage facilities failures, and disruptions in the maintenance or provision of required infrastructure and information technology systems; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; failure to comply with environmental and health and safety laws and regulations; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; timing of, receipt of, or failure to comply with, necessary permits and approvals; non-renewal of key licenses by governmental authorities; uncertainty whether some or all of targeted investments and projects will meet the Company's capital allocation objectives and internal hurdle rate; the impact of inflation, including global inflationary pressures driven by supply chain disruptions, global energy cost increases following the invasion of Ukraine by Russia and country-specific political and economic factors in Argentina; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; fluctuations in the currency markets; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices; expropriation or nationalization of property and political or economic developments in Canada, the United States, and other jurisdictions in which the Company or its affiliates do or may carry on business in the future; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law; damage to the Company's reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company's handling of environmental matters or dealings with community groups, whether true or not; the possibility that future exploration results will not be consistent with the Company's expectations; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; risks associated with artisanal and illegal mining; risks associated with diseases, epidemics and pandemics; litigation and legal and administrative proceedings; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; business opportunities that may be presented to, or pursued by, the Company; our ability to successfully integrate acquisitions or complete divestitures; risks associated with working with partners in jointly controlled assets; employee relations including loss of key employees; and availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick's ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
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