Barrick Gold Corporation – Kibali delivers another outstanding performance and plans to increase mineral reserves after depletion
Kibali continued to lead Barrick’s clean energy campaign, with power coming from its three continuously upgraded hydroelectric plants, backed by new battery backup technology.
All amounts are in US dollars
Kinshasa, Democratic Republic of Congo — The Kibali gold mine produced a total of 812,152 ounces1, well below 2021 guidance, and expects to increase its net-of-depletion mineral reserves for the third consecutive year, maintaining its 10+ year life as one of Barrick Gold’s Tier Ones Corporation.2 assets.
At a press conference here, Barrick Chairman and CEO Mark Bristow noted that this performance, which has gone from strength to strength over the course of the year, was achieved without work disruption. during the last trimester. Like all Barrick mines worldwide, Kibali has retained its ISO 45001 safety and ISO 14001 environmental accreditations.
At the same time, Kibali continued to lead the group’s clean energy campaign with electricity coming from its three continuously upgraded hydropower plants, backed by new battery backup technology.
“Kibali’s performance was supported by strengthened Covid-19 protocols to deal with the fourth wave of the virus. The mine has worked closely with DRC health authorities and the provincial government to source vaccines and to date has partially vaccinated 60% of its workforce, with 43% of the workforce fully vaccinated work,” Bristow said.
“It has also strengthened its local business partnerships to build a sustainable economy in the region. During the fourth quarter, it spent $40.6 million on local contractors and suppliers, bringing the total since Kibali’s inception to $2.1 billion. To date, Kibali has invested some $3.7 billion in the DRC in the form of taxes, permits, infrastructure, salaries and payments to local partners.
During the fourth quarter, Kibali paid a $170 million dividend to shareholders of Barrick, AngloGold Ashanti and parastatal SOKIMO, bringing the total payout for the year to $200 million. Bristow said Barrick and Congolese authorities were working together on a program to release liquidity for the repayment of offshore loans.
During the quarter, Kibali launched the Garamba Alliance, a biodiversity partnership with the United States Agency for International Development (USAID) designed to preserve this World Heritage Park through anti-poaching actions and other conservation initiatives. This partnership is also designed to ensure a sustainable economic future for the local community surrounding the park.
Looking ahead, Bristow said underground drilling at the KCD deposit is defining a new high-grade vein above the base of the shaft infrastructure. This was an exciting discovery that could add an entirely new ore body to the existing series of KCD ore bodies.
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On a 100% basis.
A Tier 1 gold asset is one with reserve potential to provide a minimum life of 10 years, annual production of at least 500,000 ounces of gold and total cash costs per ounce over the life of mine that are in the lower half of the industry cost. curve.
Caution regarding forward-looking information
Certain information contained or incorporated by reference in this press release, including any information regarding our strategy, plans, plans or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “expect”, “will”, “maintain”, “potential”, “could”, “direction”, “opportunities”, “design” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements, including, without limitation, regarding: Kibali’s production forecast and performance; opportunities to grow net depletion reserves and extend mine life at Kibali; securing Kibali’s status as a Tier 1 mine; the environmental and operational benefits expected from Kibali’s investment in its hydroelectric facilities and battery technology; Kibali’s health, safety and environmental protection programs, including its Covid-19 prevention protocols and its initiatives to secure Covid-19 vaccines as well as the Garamba Alliance; the results of underground drilling at the KCD orebody and the definition of a new high-grade vein; Barrick’s engagement with Congolese authorities on a DRC liquidity release program for the repayment of offshore loans; and Barrick’s commitment to the DRC and potential new growth opportunities.
Forward-looking statements are necessarily based on a number of estimates and assumptions, including significant estimates and assumptions relating to the factors set forth below which, although believed to be reasonable by the Company as of the date of this press 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 and 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. These 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, mining and exploration success; the possibility that future exploration results will not meet the Company’s expectations; the risks that exploration data will be incomplete and that considerable additional work may be required to complete a more in-depth assessment, including but not limited to drilling, engineering and socio-economic studies and investments; risk of loss due to acts of war, terrorism, sabotage and civil unrest; risks associated with projects in the early stages of assessment and for which additional engineering and other analyzes are required; failure to comply with environmental, health and safety laws and regulations; timing of receipt or non-compliance with necessary permits and approvals; uncertainty as to whether some or all of Barrick’s targeted investments and projects will achieve the Company’s capital allocation objectives and internal hurdle rate; 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 the DRC and other jurisdictions in which the Company or its subsidiaries do or may do business in the future; damage to the Company’s reputation due to the occurrence or perceived occurrence of a number of events, including negative publicity regarding the Company’s handling of environmental issues or relationships with community groups, whether true or not; risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic; legal and administrative litigation and proceedings; employee relations, including the loss of key employees; increased physical costs and risks, including extreme weather events and resource shortages, related to climate change; and the increased availability and costs associated with mining inputs and labor. Barrick also warns that its guidance could be affected by the unprecedented business and social disruption caused by the spread of Covid-19. In addition, there are risks and hazards associated with exploration, development and mining activities, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, floods and gold bars, copper cathodes or gold or copper concentrates. losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover such risks).
Many of these uncertainties and contingencies may affect our actual results and could cause actual results to differ materially from those expressed or implied by any forward-looking statements made by or on our behalf. Readers are cautioned that forward-looking statements are not guarantees of future performance. All 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 filed with the SEC and Canadian provincial securities regulators for a more detailed discussion of some of the factors underlying the forward-looking statements and risks that could 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 statement, whether as a result of new information, future events or otherwise, except as required by applicable law.