INVESTMENT IN GROWTH
OPENS NEW OPPORTUNITIES
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BARRICK GOLD CORPORATION
Corporate Office:
TD Canada Trust Tower
161 Bay Street, Suite 3700
Toronto, Canada M5J 2S1
Tel: +1 416 861-9911
Toll-free throughout North America:
1 800 720-7415
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ANNUAL REPORT 2022
CLEAR STRATEGY DRIVES
VALUE CREATION
CUMULATIVE OPERATING CASH FLOW
$ million
17,500
15,000
12,500
10,000
7,500
5,000
2,500
0
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
CUMULATIVE FREE CASH FLOWi
$ million
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
DEBT, NET OF CASH
$ million
4,000
3,000
2,000
1,000
0
-1,000
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
CUMULATIVE DIVIDENDS PER SHARE1
$ cents
160
140
120
100
80
60
40
20
0
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
1
Dividend declared per share in respect of stated period.
Barrick’s foundational
strategy was
to
combine the best
people with the best
assets to produce
the best returns.
On ever y metric it
is delivering a sector-
leading performance.
In 2022, dividends
and share buybacks
earned shareholders a
pay-out of $1.6 billion,
topping the previous
year’s record.
7818-DPA-Barrick Annual Report 2022_Cover_Print.indd 1-4
2023/03/15 10:35
INVESTMENT IN GROWTH
OPENS NEW OPPORTUNITIES
I
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C
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G
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L
D
C
O
R
P
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A
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O
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I
BARRICK GOLD CORPORATION
Corporate Office:
TD Canada Trust Tower
161 Bay Street, Suite 3700
Toronto, Canada M5J 2S1
Tel: +1 416 861-9911
Toll-free throughout North America:
1 800 720-7415
|
A
n
n
u
a
l
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o
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2
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u
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i
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w w w . b a r r i c k . c o m
Connect with us
ANNUAL REPORT 2022
CLEAR STRATEGY DRIVES
VALUE CREATION
CUMULATIVE OPERATING CASH FLOW
$ million
17,500
15,000
12,500
10,000
7,500
5,000
2,500
0
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
CUMULATIVE FREE CASH FLOWi
$ million
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
DEBT, NET OF CASH
$ million
4,000
3,000
2,000
1,000
0
-1,000
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
CUMULATIVE DIVIDENDS PER SHARE1
$ cents
160
140
120
100
80
60
40
20
0
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
1
Dividend declared per share in respect of stated period.
Barrick’s foundational
strategy was
to
combine the best
people with the best
assets to produce
the best returns.
On ever y metric it
is delivering a sector-
leading performance.
In 2022, dividends
and share buybacks
earned shareholders a
pay-out of $1.6 billion,
topping the previous
year’s record.
7818-DPA-Barrick Annual Report 2022_Cover_Print.indd 1-4
2023/03/15 10:35
Donlin (50%)
NEW FRONTIERS AND
NEW OPPORTUNITIES
Nevada Gold Mines (61.5%)
Carlin
Cortez (including Goldrush)
Turquoise Ridge
Phoenix
Long Canyon
CANADA
Golden Sunlight 2
Hemlo (100%)
USA
Corporate office, Toronto
A world-class business has to have a worldwide
presence. In Barrick’s hunt for new discoveries
with Tier One potential, it is steadily expanding a
global footprint which already covers 19 countries
on four continents. At the same time, further
exploration of the existing base is delivering major
growth prospects.
Fourmile (100%)
Pueblo Viejo (60%)
DOMINICAN REPUBLIC
GUYANA
SURINAME
Pierina
PERU
Norte Abierto (50%)
Pascua-Lama (100%)
Alturas (100%)
Zaldívar (50%)
Veladero (50%)
Tier Onei gold mines
Other gold mines
Copper mines
Pipeline projects
In closure
CHILE
ARGENTINA
1
2
In April 2020, Porgera was placed on care and maintenance. Porgera interest of 24.5% reflects Barrick’s expected ownership interest following the
implementation of the binding February 3, 2022 Commencement Agreement.
Golden Sunlight is currently reprocessing tailings that produce a sulphur concentrate as fuel for the refractory processing facilities at Nevada Gold Mines.
Jabal Sayid (50%)
Tongon (89.7%)
EGYPT
Reko Diq (50%)
SAUDI
ARABIA
Balochistan,
PAKISTAN
JAPAN
SENEGAL
MALI
CÔTE
D’IVOIRE
DRC
Loulo-Gounkoto (80%)
ZAMBIA
Kibali (45%)
TANZANIA
North Mara (84%)
Bulyanhulu (84%)
Buzwagi
Lumwana (100%)
Porgera (24.5%)1
PAPUA
NEW GUINEA
NORTH AMERICA
LATIN AMERICA AND ASIA PACIFIC
AFRICA AND MIDDLE EAST
Goldrush portal
Pueblo Viejo plant
Loulo pit
Nevada, USA
At Robertson, a maiden proven and
probable reserve of 1.6 million ounces1,i
was declared with further expansion
potential between existing deposits
and along strike. Robertson is a key
source of oxide mill feed in the long-
term mineplan for the Cortez Complex.
Nevada, USA
The Carlin Complex’s North Leeville
inferred resource has grown to 1 million
ounces1,i, clearly demonstrating
this
target’s multi-million ounce potential.
1 On a 100% basis
Nevada, USA
The growth potential of Barrick’s
100%-owned high-grade Fourmile asset
has significantly increased with the new
Dorothy discovery confirming significant
upside along the corridor to the multi-
million ounce Goldrush project.
USA
Barrick extends its gold and copper
exploration focus beyond Nevada Gold
Mines.
Canada
A new pushback in the Hemlo open
pit contributed to reserve growth in
2022, which is expected to improve
mill productivity and flexibility in the
mineplan.
Dominican Republic
The plant expansion and mine life
extension project at Pueblo Viejo
the
continues
significant growth in reserves has
extended the operation’s
life to
2040 and beyondv.
to advance and
Argentina
Geological work in the Veladero
district is focusing on targets with
the potential to add to the mine’s
life. Barrick is also evaluating the
significant remaining targets in the
prospective El Indio belt.
Japan
The group’s strategic alliance with Japan
Gold, which holds the largest exploration
property portfolio in Japan, has advanced
six projects to the second evaluation phase.
Democratic Republic of Congo
Kibali’s KZ Zone continues to reveal exciting
exploration potential. Multiple open-pit and
underground targets are being progressed
through the resource triangle.
Zambia
The pre-feasibility study for a Super Pit
and mill expansion at Lumwana is well
under way, which has the potential to
extend the mine’s life beyond 2080.
Pakistan
First production from the Reko Diq project –
one of the largest undeveloped copper-gold
deposits in the world and a potential Tier
One asset in the making – is targeted for
2028.
Papua New Guinea
Porgera continues
towards
restarting under its new ownership structure
for the benefit of all stakeholders.
its progress
Mali
The Loulo District remains one of Barrick’s
most successful hunting grounds with
significant discovery potential, including
a 26km-long highly-prospective trend in
the Bambadji permit.
Tanzania
Mining is scheduled to start at the new
Gena open pit in the first quarter of 2023,
while the new underground fleet at both
North Mara and Bulyanhulu continues to
deliver on its ramp-up plans.
Egypt
Barrick now holds a 1,675km2 land package
where field teams are actively screening for
mineralized systems, and aim to carry out
maiden drill programs in 2023.
Saudi Arabia
Work is under way to develop a new target
less than one kilometre from the existing lode at
Jabal Sayid, while exploration results continue
to confirm the discovery potential across the
mine. Barrick is also expanding its exploration
joint venture with Ma’aden at new greenfields
projects, including Umm Ad Damar.
2022 HIGHLIGHTS
GROUP GOLD PRODUCTION
NET EARNINGS
4.1 Moz
$432
MILLION
MOODY’S LONG-TERM
CREDIT RATING
A3
Highest credit rating in the gold
mining industry
GROUP COPPER PRODUCTION
RETURNS TO SHAREHOLDERS
ADJUSTED EBITDAi
440 Mlb
$1.6
BILLION
Through dividends and share
buybacks
$5,613
MILLION
NET CASH PROVIDED BY
OPERATING ACTIVITIES
$3,481
MILLION
FREE CASH FLOWi
$432
MILLION
GREENHOUSE GAS
EMISSIONS
~6%
Scope 1 and 2 (market-based)
Compared to the 2021 fiscal year
2023 GUIDANCEii
GOLD PRODUCTION
4.2 - 4.6Moz
COST OF SALESi
$1,170 - 1,250/oz
TOTAL CASH COSTSi
$820 - 880/oz
AISCi
$1,170 - 1,250/oz
COPPER PRODUCTION
420 - 470Mlb
COST OF SALESi
$2.60 - 2.90/lb
C1 CASH COSTSi
$2.05 - 2.25/lb
AISCi
$2.95 - 3.25/lb
TOTAL ATTRIBUTABLE GOLD & COPPER CAPEXi
$2,200 - 2,600million
7818-DPA-Barrick Annual Report_CMYK.indd 1
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Barrick Gold Corporation | Annual Report 2022
Barrick Gold Corporation | Annual Report 2022 1
1
CONTENTS
2022 Highlights
2023 Guidance
Key Performance Indicators
Who We Are
Why Invest In Barrick
Letter from the Executive Chairman
Board of Directors
Message from the President and CEO
Executive Committee
Financial Review
Gold Market Overview
Copper Market Overview
Our Regions and Operations
Reserves and Resources
Exploration
Mining Sustainably for a Better Future
Endnotes
Financial Report
01
01
04
06
07
08
10
12
16
18
20
21
22
38
40
44
53
54
Barrick Gold Corporation shares trade on the New York Stock
Exchange (NYSE) under the symbol GOLD, and on the Toronto
Stock Exchange (TSX) under the symbol ABX.
Barrick Gold Corporation
NYSE : GOLD • TSX : ABX
www.barrick.com
Unless otherwise indicated, all amounts are expressed in US dollars.
Facing page: Drilling confi rming extensions to mineralization at the
Morro Escondido target close to the Veladero operation, Argentina.
2
Annual Report 2022 | Barrick Gold Corporation
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7818-DPA-Barrick Annual Report_CMYK.indd 3
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Barrick Gold Corporation | Annual Report 2022
3
KEY PERFORMANCE
INDICATORS
GOLD PRODUCTION
GOLD COST OF SALESi
GOLD TOTAL CASH COSTSi
GOLD AISCi
Moz
5.0
4.0
3.0
2.0
1.0
0
$/oz
1,500
1,200
900
600
300
0
$/oz
1,000
800
600
400
200
0
$/oz
1,500
1,200
900
600
300
0
2020
2021
2022
2020
2021
2022
2020
2021
2022
2020
2021
2022
COPPER PRODUCTION
COPPER COST OF SALESi
COPPER C1 CASH COSTSi
COPPER AISCi
Mlb
500
400
300
200
100
0
$/lb
2.50
2.00
1.50
1.00
0.50
0
$/lb
2.00
1.50
1.00
0.50
0
$/lb
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0
2020
2021
2022
2020
2021
2022
2020
2021
2022
2020
2021
2022
SAFETY FREQUENCY
RATE STATISTICS
ENVIRONMENTAL
INCIDENTS
2022 REVENUE
2022 REVENUE
2.00
1.50
1.00
0.50
0
1.68
1.47
1.30
0.34
0.38
0.29
20
16
12
8
4
0
8
0
5
0
2
0
2020
2021
2022
2020
2021
2022
Lost Time Injury Frequency Rate (LTIFR)i
Class 1i
Class 2iv
Total Recordable Injury Frequency
Rate (TRIFR)i
4
Annual Report 2022 | Barrick Gold Corporation
5
2
2
868
$ million
9,920
Gold
Copper
Other
7818-DPA-Barrick Annual Report_CMYK.indd 4
2023/03/15 16:40
KEY PERFORMANCE INDICATORS (CONTINUED)
NET CASH PROVIDED BY
OPERATING ACTIVITIES
FREE CASH FLOWi
DEBT, NET OF CASH
RETURNS TO
SHAREHOLDERS
$ million
$ million
$ million
$ million
6,000
4,800
3,600
2,400
1,200
0
4,000
3,200
2,400
1,600
800
0
600
400
200
0
-200
-400
1,800
1,500
1,200
900
600
300
0
2020
2021
2022
2020
2021
2022
2020
2021
2022
2020
2021
2022
Dividend
Share buybacks
Return of capital
NET EARNINGS PER
SHARE (EPS)
ADJUSTED NET EPSi
PROJECT CAPITAL
EXPENDITURESi,1
GOLD AND COPPER PRICE
$
1.50
1.20
0.90
0.60
0.30
0
$
1.20
0.96
0.72
0.48
0.24
0
$ million
1,100
960
800
640
480
320
160
0
$/oz
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
$/lb
5.50
5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
2020
2021
2022
2020
2021
2022
2020
2021
2022
2020
2021
2022
1 Amounts presented on a
consolidated cash basis
Market gold price
Market copper price
2022 GEOGRAPHIC DISTRIBUTION
OF GOLD PRODUCTION
2022 GEOGRAPHIC DISTRIBUTION
OF COPPER PRODUCTION
37%
5%
58%
22%
78%
North America (including Dominican Republic2)
Latin America and Asia Pacific
Africa and Middle East
2
Pueblo Viejo represented approximately 10% of Barrick's attributable
gold production in 2022 and is included as part of the North America region
and shown in the diagonally striped section for illustrative purposes.
Africa and Middle East
Latin America and Asia Pacific
Barrick Gold Corporation | Annual Report 2022
5
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WHO WE ARE
Our Business
Barrick is a sector-leading gold and copper
producer. Our portfolio spans the world’s most
prolific gold and copper districts and is focused
on high-margin, long-life assets.
Our Purpose
We are building the world’s most valued gold
and copper company by owning the best assets,
managed by the best people to deliver the best
returns and benefits to all our stakeholders.
Our Strategy
We plan for the long term and continuously
invest in sustainable growth, with worldwide
exploration programs designed to deliver a
steady stream of new business opportunities.
We are committed to partnering with
our host countries and communities
to transform their natural resources
into tangible benefits and mutual
prosperity.
We prioritize local hiring and our
highly diversified workforce is drawn
almost entirely from our host nations
and equipped with world-class skills.
6
Annual Report 2022 | Barrick Gold Corporation
7818-DPA-Barrick Annual Report_CMYK.indd 6
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WHY INVEST IN BARRICK
Sustainable Through the Cycles
Best Asset Base
Largest portfolio of Tier One and world-class gold and copper assets that
is unmatched in the industry, with more waiting in the wings.
Growing Copper Exposure
Well positioned to capitalize on global decarbonization trends driving the
demand and long-term fundamental strength of copper.
Clear Runway
All our mines have 10-year business plans — in some cases being rolled
out to 15 and 20 years — firmly anchored in demonstrable geological
understanding, engineering and commercial feasibility.
Exploration is the Foundation
Strong track record of exploration success — new targets and projects
extend mine lives while we seek new world-class discoveries.
Growth from Robust Pipeline and Continued
Reserve Replacement
Our growth projects support and enhance current production levels and
we continue to add to our reserve base organically through exploration.
Disciplined Shareholder Returns
An industry-leading performance dividend framework provides for
enhanced returns while delivering financial flexibility and predictability.
Leader in Sustainability
Sustainability is at the core of how we conduct our business. Our approach
to ESG is driven by tangible on-the-ground action and measurable results
that benefit all stakeholders.
7818-DPA-Barrick Annual Report_CMYK.indd 7
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Barrick Gold Corporation | Annual Report 2022
7
LETTER FROM THE
EXECUTIVE CHAIRMAN
In a year where confi dent market expectations
were confounded by the emergence of new macro-
economic fundamentals and the growing impact
of the geopolitical situation, Barrick’s long-term
strategy of building its future by continuing to
invest in sustainably profi table growth, organic as
well as external, has equipped us well to manage
challenging circumstances.
Guided by this strategy, our agile team, led by President and
Chief Executive Mark Bristow, has frequently demonstrated
our capacity to deal effectively with the many risks inherent in
the business of mining as well as unexpected external threats,
as shown by Barrick’s exemplary handling of the Covid-19
pandemic. In the current climate of uncertainty, we are proving
again that our people are truly world-class and are more than
capable of making Barrick the world’s most valued gold and
copper mining company.
Considering the dynamics of 2022, Barrick’s production and
financial results were creditable as we continued to distribute
peer-leading returns to our investors through a shareholder-
friendly, performance-linked dividend policy and a share
buyback program, despite the volatility of the market.
Barrick boasts one of the strongest balance sheets in the
gold industry, validated by the Moody’s long-term credit
rating upgrade from Baa1 to A3 with a stable outlook in
December 2022. We delivered on some critical projects, kept
others on track and identified major new growth opportunities.
Barrick has again more than replaced the gold reserves we
mined during 2022 and our proven ability to sustain this
achievement through ongoing greenfields and brownfields
exploration will support the successful execution of the
company’s 10-year rolling business plan.
Our focus in 2023 will be on expanding Barrick’s value
foundation, already one of the industry’s best, both within and
beyond our current borders. The potential expansion of the
Lumwana copper mine in Zambia is set to deliver additional
value and the Reko Diq project in Pakistan is expected to
almost double our current copper production and add to our
gold production when it is in full production. The expansion
of the Pueblo Viejo gold mine in the Dominican Republic is
designed to extend its Tier One status by at least 20 yearsv.
We are extending our presence in North and South America
and the Asia Pacific region, and we are particularly excited by
new opportunities in North Africa and the Middle East.
At a time when environmental management and human
rights are coming under increasing critical scrutiny, Barrick’s
sustainability strategy has long been embedded in our business
plans. The creation of long-term value for all stakeholders has
and continues to contribute meaningfully to the social and
economic development of our host countries and communities,
protect the safety and health of our people, respect human
rights, and manage our impact on the environment with future
generations in mind.
Sustainability performance accounts for 25% of long-term
incentive awards for our senior leaders, demonstrating the
importance Barrick attaches to our sustainability commitments.
Our 2022 Sustainability Report, which objectively rates our
performance against a wide range of metrics, will be published
in April 2023.
8
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Fundamental changes in the global geopolitical and economic
landscape auger well for gold, which last year outperformed
most other asset classes. The current risks to the global
economy outlook recalls the period between 2011 and 2015,
when the gold mining industry’s eagerness to buy production
led to a number of expensive merger and acquisition deals
involving high premiums and putting pressure on profitability
and performance. Barrick’s continued exploration success
and disciplined growth strategy ensures that we will continue
to evaluate merger and acquisition opportunities, but we won’t
be tempted to overpay for mediocre assets.
Likewise, driven by the transition to cleaner energy, copper
is destined to become as strategically valuable as gold is
precious. The timely expansion of our copper portfolio has
positioned Barrick ahead of most of its peers in capitalizing
on this trend. As we look into 2023 and beyond, we are
more certain than ever that Barrick is best placed to deliver
sustainable value to our shareholders and other stakeholders.
Other than our value foundation in North America, Barrick’s
operations are located in developing jurisdictions, which is why
we take our responsibility to our stakeholders in those countries
so seriously. Mining can and should be a key catalyst for
economic growth and social upliftment. Barrick’s substantial
contribution to our host countries’ coffers and our equally
significant investment in the welfare of the communities that
border on our mines is making a real difference, highlighting the
important part that the mining industry can play in narrowing
the gap between the richer and poorer nations to make the
world a better place.
Barrick also continues to invest in our next leadership
generation, recruiting and developing talented young people
from across our global network. Similarly, the Board is
committed to board renewal and diversity, and in this regard it
is worth noting that four of the seven new directors appointed
since the Merger1 are very highly qualified women, bringing the
proportion of women on the Board to 33%.
LETTER FROM THE EXECUTIVE CHAIRMAN (CONTINUED)
In conclusion, I thank the members of the Board for their close
engagement with every aspect of the business and the strategic
direction we gain from their broad and deep experience.
We look forward to another year in which together with the
executive we continue to advance Barrick towards its goal of
being the world’s most valued gold and copper company.
John L Thornton
Executive Chairman
RETURNS TO SHAREHOLDERS
$ million
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
424
1,143
750
634
548
547
125
2018
2019
2020
2021
2022
1
The merger of Barrick and Randgold completed on January 1, 2019.
Dividends
Return of capital
Share buybacks
PERFORMANCE DIVIDEND POLICY
In addition to Barrick’s quarterly base dividend2, a performance enhancement may be declared based on amount of cash, net of
debt, on Barrick’s balance sheet at the end of each quarter.
Performance
dividend level
Threshold level
Quarterly
base dividend
Quarterly
performance dividend
Quarterly
total dividend
Level I
Net cash less than $0
$0.10 per share
$0.00 per share
$0.10 per share
Level II
Level III
Level IV
Net cash greater than $0 and less than
$0.5 billion
Net cash greater than $0.5 billion and
less than $1 billion
$0.10 per share
$0.05 per share
$0.15 per share
$0.10 per share
$0.10 per share
$0.20 per share
Net cash greater than $1 billion
$0.10 per share
$0.15 per share
$0.25 per share
2
The declaration and payment of dividends is at the discretion of the Board of Directors, and will depend on the company’s financial results, cash
requirements, future prospects, the number of outstanding common shares, and other factors deemed relevant by the Board.
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Barrick Gold Corporation | Annual Report 2022
9
BOARD OF DIRECTORS
John L Thornton
NON-INDEPENDENT,
EXECUTIVE
CHAIRMAN
Mark Bristow
Mark Bristow
NON-INDEPENDENT,
NON-INDEPENDENT,
PRESIDENT AND
CHIEF EXECUTIVE
OFFICER
J Brett Harvey
J Brett Harvey
INDEPENDENT AND
LEAD DIRECTOR
Director since February 2012
Nationality: American
Director since January 2019
Nationality: South African
Director since December 2005
Nationality: American
John Thornton has been Executive
Chairman of Barrick since 2014.
He has decades of experience in
global business, finance and public
affairs and has served as a director
of numerous public companies,
including China Unicom, Ford,
HSBC, Industrial and Commercial
Bank of China, Intel and News
Corporation.
Helen Cai
INDEPENDENT
DIRECTOR
Director since November 2021
Nationality: Chinese
Member of the Audit & Risk
Committee
Audit Committee Financial Expert
Member of the Compensation
Committee
Helen Cai has almost two decades of
experience in fi nance and investment.
She was an equity research analyst
with Goldman Sachs covering the
American mining and
technology
sectors. Then, at China International
Capital Corporation, she was a lead
analyst covering the greater China
region, and later as a senior investment
banker
IPO,
restructuring, and M&A transactions.
headed
various
Mark Bristow was formerly the chief
executive of Randgold Resources, the
company he built from a small Africa-
focused exploration business into one
of the industry’s most profi table and
best managed gold miners. He joined
Barrick in his current position with
the Merger in January 2019. Mark
restrategised
restructured and
Barrick, and within months was the
prime mover in the combination of
the Nevada assets of Barrick and
Newmont, creating the world’s single
largest gold mining complex, Nevada
Gold Mines, majority-owned and
operated by Barrick.
Chair of the Audit & Risk
Committee
Audit Committee Financial Expert
Member of the Compensation
Committee
Brett Harvey is chairman of the
board of Warrior Met Coal Inc. He
was CONSOL Energy Inc’s chairman
emeritus from May 2016 to May
2017, chairman from January 2015 to
May 2016, executive chairman from
May 2014 to January 2015, chairman
and CEO from June 2010 to May
2014, and CEO from January 1998 to
June 2010.
Gustavo A
Cisneros
INDEPENDENT
DIRECTOR
Christopher L
Christopher L
Coleman
INDEPENDENT
DIRECTOR
Director since September 2003
Nationality: Venezuelan and
Spanish
Chair of the ESG & Nominating
Committee
Member of the Compensation
Committee
Gustavo Cisneros is the chairman
of Cisneros, a privately held media,
entertainment,
telecommunications
and consumer products organization.
He
is a member of Barrick’s
International Advisory Board and is
also a senior advisor to RRE Ventures
LLC, a venture capital fi rm.
Director since January 2019
Nationality: British
Chair of the Compensation
Committee
Member of the ESG & Nominating
Committee
Christopher Coleman is the chair
of
the board of Papa John’s
International Inc. He is also the
group head of banking at Rothschild
& Co and has more than 25 years’
experience in the fi nancial services
including corporate and
sector,
private client banking and project
fi nance. He has had a long-standing
involvement in the mining sector in
Africa and globally.
10
Annual Report 2022 | Barrick Gold Corporation
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BOARD OF DIRECTORS (CONTINUED)
Isela Costantini
Isela Costantini
INDEPENDENT
INDEPENDENT
DIRECTOR
J Michael
Evans
INDEPENDENT
DIRECTOR
Brian L
Greenspun
INDEPENDENT
DIRECTOR
Director since November 2022
Nationality: Brazilian,
Argentinian and American
Isela Costantini has over 25 years of
experience in international business
and is currently the chief executive
of Grupo Financiero GST, a privately
held asset management company.
Prior to that, she was president
and CEO of Argentina’s national
airline, Aerolíneas Argentina, as well
as president and general director,
Argentina, Paraguay and Uruguay,
for General Motors.
is a
member of Barrick’s International
Advisory Board.
Isela
Anne
Kabagambe
INDEPENDENT
DIRECTOR
Director since July 2014
Nationality: Canadian
Director since July 2014
Nationality: American
Member of the Audit & Risk
Committee
Audit Committee Financial Expert
Michael Evans
the president
is
of Alibaba Group Holding Ltd, a
position he has held since August
2015. Prior to becoming president,
he was an independent director
and member of the audit committee
of Alibaba Group Holding Ltd.
Member of the ESG & Nominating
Committee
Member of the Compensation
Committee
Brian Greenspun is the publisher
and editor of the Las Vegas Sun.
He
is also chairman and CEO
of Greenspun Media Group and
has been appointed to two US
Presidential Commissions.
Andrew J
Quinn
INDEPENDENT
DIRECTOR
Loreto Silva
Loreto Silva
INDEPENDENT
DIRECTOR
Director since January 2019
Nationality: British
Director since August 2019
Nationality: Chilean
Director since November 2020
Nationality: Ugandan
Member of the Audit & Risk
Committee
Member of the ESG & Nominating
Committee
Member of the Audit & Risk
Committee
Anne Kabagambe has 35 years’
experience spanning a diverse
range of senior leadership positions
in international institutions. She is
a former executive director of the
World Bank Group and, prior to the
World Bank, spent 27 years at the
African Development Bank. She
has also served on the boards of
the Africa American Institute and
Junior Achievement Africa.
For 15 years, prior to his retirement
in 2011, Andy Quinn was head
of mining investment banking for
Europe and Africa at CIBC. He has
over 40 years’ experience in the
mining industry.
Loreto Silva serves as a partner at the
Chilean law fi rm Bofi ll Escobar Silva
Abogados. She is also a director of
ICAFAL
Ingeniería y Construcción
SA, a privately held infrastructure
company in Chile. In 2010, she was
appointed Vice Minister of Public
Works and became the Minister of
Public Works at the end of 2012, a
position she held until March 2014.
She has been named one of Chile’s
100 top woman leaders on four
occasions.
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Barrick Gold Corporation | Annual Report 2022
11
MESSAGE FROM THE
PRESIDENT AND CEO
Four years ago, when we merged Barrick and
Randgold, we set out to build a new industry
leader: a company that would stand out from
its peers, driven by a fundamental promise
to our stakeholders that we would create
and deliver value, and that we would do so
sustainably.
In 2018 Barrick had 62 million ouncesi,iii of gold reserves and,
accounting for the Randgold merger and other transactions
since then, we have added a net 10 million ouncesi,iii of gold
reserves. In 2022 we increased reserves to 76 million ouncesi
of gold, having produced 19 million ounces of gold and
1.7 billion pounds of copper since the Merger. Added to this, we
have signifi cantly expanded our copper resources by 124% in
the last year alone, positioning us for future production growth.
Over the same period, we have returned $4 billion to
shareholders1 while at
investing some
the same
$7.5 billion in our 10-year rolling business plans. Once mired
in debt, Barrick also reduced net debt2 by approximately
$4 billion, signifi cantly deleveraging the company, and last year
Moody’s upgraded our long-term credit rating to A3 – the highest
in the industry.
time
We created the world’s largest gold mining complex in Nevada,
through the formation of the Nevada Gold Mines joint venture,
opening up a wide range of opportunities for expanding its
existing asset base as well as discovering new world-class
resources. In Tanzania, we have transformed the derelict Acacia
legacy mines, which now produce gold at a Tier One level as a
combined complex.
Overcoming challenges, exploiting opportunities
The past year was one in which key consensus assumptions were
upset by unforeseen economic and geopolitical developments,
creating both unique challenges and exceptional opportunities.
The highlight of an eventful year was the continued growth in our
gold reserves and resources, driven by our strategy of investing
in organic growth through exploration and mineral resource
management. Barrick’s ability over time to more than replace
the ounces we mine reinforces our sustainability and our sector-
leading production profi le.
Brownfi elds exploration continues to unlock potential around our
existing assets while greenfi elds work has started delivering real
value, detailed in the Exploration section of this report. We’re
continuing to expand our global exploration footprint with active
programs elsewhere in the United States as well as in Canada,
Latin America, Saudi Arabia and Egypt.
We made signifi cant progress with the planned expansion of our
copper holdings and started work on the reconstituted Reko
Diq project in Pakistan, one of the largest and highest-quality
undeveloped copper and gold deposits in the world. In Zambia,
the revitalized Lumwana mine is planning a new Super Pit and
in Saudi Arabia, Jabal Sayid is showing expansion potential. On
the back of this successful joint venture, we and our partner
Ma’aden have started two new greenfi elds projects.
In the Dominican Republic, our Tier One gold mine Pueblo Viejo
started commissioning its plant expansion project, which on the
back of a new TSF complex has added 11 million ounces3,v to its
reserves which will extend its life by at least 20 years.
Through dividends, return of capital and share buybacks.
Debt, net of cash.
1
2
3 On a 100% basis, net of depletion.
12
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MESSAGE FROM THE PRESIDENT AND CEO (CONTINUED)
In Nevada, Goldrush advanced to the next stage of its permitting
process and Turquoise Ridge commissioned its third shaft,
which will ramp up the underground operation. Nevada is
Barrick’s value foundation and the quality and prospectivity of the
Nevada Gold Mines complex cannot be overstated. The benefits
of its creation are now becoming evident in the form of mineral
resource growth and new discoveries supporting future reserve
conversion.
The value of real sustainability
Sustainability is fundamental to Barrick’s business. We believe
that climate risks, poverty and biodiversity loss are inextricably
linked and should be managed holistically. This approach is
based on our commitment to supporting the socio-economic
development of our host countries and communities. Last
year alone we invested $35 million in community development
projects.
Strong finish to challenging year
Despite a strong fourth quarter and the usual solid contribution
from the Africa and Middle East region, Barrick missed its
production guidance for the first time since the Merger, albeit by
only 1%. This was mainly due to some unforeseen operational
issues at the Carlin, Cortez and Turquoise Ridge mines in Nevada,
all of which had staged a robust recovery by the year’s end.
Ten of our 16 operations delivered within guidance, led by Loulo-
Gounkoto in Mali and Pueblo Viejo in the Dominican Republic.
The latter ended the year with a record throughput, a major
achievement considering the plant downtime required for the
expansion tie-ins and the on-site presence of 6,000 contract
workers employed for the project.
The greening of our power grid continued throughout the group,
notable examples being the new 80MW and 200MW solar
projects in the Dominican Republic and Nevada respectively.
Also, the expansion of the solar power and battery energy
storage system (BESS) at Loulo-Gounkoto is expected to
replace 23 million litres of heavy fuel oil and reduce greenhouse
gas (GHG) emissions by a further 62,000 tonnes when it is fully
commissioned, and the planned solar power plant and BESS will
provide renewable backup to Kibali’s three hydropower plants
during the dry season.
For Barrick, sustainability starts at the mine planning stage,
well before construction starts. At the Reko Diq project in
Pakistan, we plan to show how mining can be at the forefront of
the achievement of the UN’s Sustainable Development Goals.
This massive project is expected to have a transformative
effect on the impoverished Chagai region, creating thousands
of jobs and stimulating the growth of a local economy. We
have scheduled the disbursement of social development funds
and advance royalties to the Balochistan provincial government
well in advance of first production, targeted for 2028, ensuring
that its people will get an early return on their 25% stake in
Reko Diq. We have also started the environmental and social
baseline studies and had our introductory engagement with
the local communities.
The health and safety of our workers and their communities are
key components of Barrick’s sustainability strategy. Sadly, our
otherwise creditable record in this regard was blemished by a
number of fatalities last year. All of these have been thoroughly
investigated and the lessons learned have been applied
throughout the group. Significantly, most of these fatalities
were suffered by our contractors and we have therefore
tightened our oversight of their safety systems and protocols.
2023 TO 2027 CUMULATIVE ATTRIBUTABLE FREE CASH FLOWi FROM OPERATING MINESii
For every $100/oz change in the gold price, attributable free cash flowi
generated by our operations increases by ~$1.7 billion.
For every $0.50/lb change in the copper price, attributable free cash flowi
generated by our operations increases by ~$0.8 billion.
i s m a g n i f i e d b y o w n i n g s i x T i e r O n e g o l d a s s e t s
l e v e r a g e
O u r p r i c e
$ billion
20
15
10
5
0
$1,300/oz
$3.00/lb
$1,400/oz
$3.25/lb
$1,500/oz
$3.50/lb
$1,600/oz
$3.75/lb
$1,700/oz
$4.00/lb
$1,800/oz
$4.25/lb
$1,900/oz
$4.50/lb
$2,000/oz
$4.75/lb
Tier One gold assets
Other gold assets
Copper assets
On an attributable basis; excludes corporate-level costs such as interest, exploration, evaluation and project, G&A as well as closure (average of $0.8 billion per
annum). Exclusive of Porgera.
Barrick Gold Corporation | Annual Report 2022
13
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MESSAGE FROM THE PRESIDENT AND CEO (CONTINUED)
GOLD, COPPER, AND S&P 500 PERFORMANCE - INDEXED SINCE 2000
)
0
0
1
=
e
s
a
B
(
e
c
n
a
m
r
o
f
r
e
P
e
c
i
r
P
e
v
i
t
a
e
R
l
800
700
600
500
400
300
200
100
0
0
0
0
2
1
0
0
2
2
0
0
2
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
6
1
0
2
7
1
0
2
8
1
0
2
9
1
0
2
0
2
0
2
1
2
0
2
2
2
0
2
Gold price
Copper price
S&P 500 Total Return Index
Source: Bloomberg
10-YEAR GOLD AND COPPER - BASE CASE PRODUCTION OUTLOOK WITH REKO DIQ AND LUMWANA
SUPER PITii (GOLD EQUIVALENT KOZ)
7,000
6,500
6,000
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
North America
Latin America and Asia Pacific
Africa and Middle East
Reko Diq and Lumwana Super Pit
On an attributable basis. Gold equivalent ounces from copper assets are calculated using a gold price of $1,650/oz for 2023 and $1,300/oz for 2024 and
onwards; and a copper price of $3.50/lb for 2023 and $3.00/lb for 2024 and onwards.
14
Annual Report 2022 | Barrick Gold Corporation
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MESSAGE FROM THE PRESIDENT AND CEO (CONTINUED)
Committed to shareholder returns, investing in
the future
Demonstrating our commitment
to strong shareholder
returns, we returned a record $1.6 billion in 2022, including
$424 million in share buybacks. A new $1 billion share buyback
program has been introduced for the next twelve months.
The case for investing in Barrick is a powerful one. There is no
other mining company that has our proven long-term strategy,
our quality assets, our growth projects, our world-class team
and our social licence to operate, earned through our mutually
beneficial partnerships with our host countries. These are the
attributes that secure our sustainability and our capacity to
outperform our peers in financial and operational delivery.
Our returns to shareholders have not been at the expense of
our organic growth strategy. We continue to invest in and roll
out our 10-year gold and copper plans, projecting real growth
on a steady base case production profile. This investment is
made possible by the unmatched quality of our assets and the
abundant free cash flow they generate. Also embedded in our
portfolio is a long pipeline of quality projects from which we are
steadily unlocking value. The ability to grow without having to
buy is a very significant advantage that differentiates Barrick
from its peers.
Barrick has been built on successful partnerships and I
thank the many who have helped to bring us this far on our
journey to be the world’s most valued mining company: our
shareholders, our host countries and communities, and our
business associates. Above all, I thank our people, who last
year again showed that they truly are the best, and our Board,
whose collective wisdom and diverse experience continues to
guide us steadily to that destination.
Mark Bristow
President and Chief Executive
Barrick Gold Corporation | Annual Report 2022
15
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EXECUTIVE COMMITTEE
Mark Bristow
PRESIDENT AND
CHIEF EXECUTIVE
Graham
Shuttleworth
Shuttleworth
SENIOR EXECUTIVE
SENIOR EXECUTIVE
VICE-PRESIDENT, CHIEF
VICE-PRESIDENT, CHIEF
FINANCIAL OFFICER
FINANCIAL OFFICER
Kevin Thomson
Kevin Thomson
SENIOR EXECUTIVE
SENIOR EXECUTIVE
VICE-PRESIDENT,
STRATEGIC MATTERS
STRATEGIC MATTERS
STRATEGIC MATTERS
industry
Graham Shuttleworth is a Chartered
Accountant with over 28 years’
experience.
mining
Previously, he was the Financial
Director and Chief Financial Offi cer
of Randgold from July 2007, and
prior to that was the managing
director and head of metals and
mining for the Americas in the
global investment banking division
of HSBC. He became the Senior
Executive Vice-President and CFO
of Barrick at the time of the Merger
with Randgold in January 2019.
Christine Keener
Christine Keener
CHIEF OPERATING
OFFICER, NORTH
AMERICA
Christine Keener is the executive
responsible for the North America
in
region and was appointed
February 2022. She has a diversifi ed
background having worked in fi nance,
strategy, a number of commercial
roles and more recently in operations.
Christine formerly served as vice
president of operations, Europe
and North America, as well as vice
president commercial and strategy,
aluminum for Alcoa. She holds an
MBA from Carnegie Mellon University
and a Bachelor of Accounting from
Grove City College.
Mark Bristow was formerly the chief
executive of Randgold Resources, the
company he built from a small Africa-
focused exploration business into
one of the industry’s most profi table
and best managed gold miners. He
joined Barrick in his current position
with the Merger in January 2019.
Mark restructured and restrategised
Barrick, and within months he was
the prime mover in the combination
of the Nevada assets of Barrick and
Newmont, creating the world’s single
largest gold mining complex, Nevada
Gold Mines, majority-owned and
operated by Barrick. His goal is to
make Barrick the world’s most valued
gold and copper producer, owning
the best assets, managed by the
best people, and delivering industry
leading returns.
Sebastiaan Bock
Sebastiaan Bock
CHIEF OPERATING
OFFICER, AFRICA
AND MIDDLE EAST
joined Randgold
Sebastiaan Bock
in 2008 and assumed the position
of Senior Vice-President and Chief
Financial Offi cer for the Africa and
Middle East region at the time of the
Merger. He became the executive
responsible for the Africa and Middle
East region in July 2022. His broad
includes
experience
operations,
legal across multiple
fi nance and
is a Chartered
He
jurisdictions.
Accountant and a graduate of
the executive program at Harvard
Business School.
Kevin Thomson joined Barrick in
2014. He was previously a senior
partner at one of Canada’s leading
law fi rms, specializing in mergers and
acquisitions. He is responsible for all
matters of strategic signifi cance to
Barrick, including the management
of legal issues related to complex
negotiations, corporate strategy and
governance.
Mark Hill
CHIEF OPERATING
CHIEF OPERATING
OFFICER, LATIN
AMERICA AND ASIA
AMERICA AND ASIA
AMERICA AND ASIA
PACIFIC
Mark Hill is the executive responsible
for the Latin America and Asia
Pacifi c region, a role he assumed
in January 2019. He was formerly
Chief Investment Offi cer of Barrick,
chairing its investment committee
and has more
than 28 years’
experience in the mining industry.
Peter Richardson
Peter Richardson
EXECUTIVE MANAGING
EXECUTIVE MANAGING
DIRECTOR, NEVADA
DIRECTOR, NEVADA
GOLD MINES
Peter Richardson was appointed
Executive Managing Director of
Nevada Gold Mines in October 2022.
He was formerly senior vice president
and chief operating offi cer for Lundin
Mining Corp and before that worked in
increasing leadership roles at Boliden
AB. Peter holds an MSc in Metallurgical
Engineering and has over 28 years’
experience in the mining industry.
16
Annual Report 2022 | Barrick Gold Corporation
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EXECUTIVE COMMITTEE (CONTINUED)
Lois Wark
GROUP CORPORATE
GROUP CORPORATE
COMMUNICATIONS
COMMUNICATIONS
AND INVESTOR
RELATIONS
EXECUTIVE
Riaan Grobler
Riaan Grobler
COMMERCIAL AND
SUPPLY CHAIN
EXECUTIVE
Grant Beringer
Grant Beringer
GROUP
SUSTAINABILITY
EXECUTIVE
Lois Wark joined Randgold when
the company was established in
its corporate
1995 and headed
communications
for
function
In January 2019,
20 years.
following the Merger, she assumed
responsibility
in
as
charge of Barrick’s global corporate
communications
investor
relations programs.
executive
and
in
and
Riaan Grobler holds an Honours
degree
has
Finance
24 years’ experience in the gold
mining industry. He was appointed
Group Commercial and Supply Chain
General Manager for Randgold in
2014 and Senior Vice President
Commercial and Supply Chain for
Barrick
in
January 2019. In 2021, Riaan was
appointed Commercial and Supply
Chain Executive.
the Merger
following
Glenn Heard
MINING EXECUTIVE
Glenn Heard is a mining engineer
with a Bachelor of Engineering
(Mining) Honours and over 30 years’
mining experience. In 2017, he was
appointed Randgold’s Group General
Manager – Mining and then Senior
Vice President Mining for Barrick
following the Merger in January 2019.
In 2021, Glenn was appointed Mining
Executive responsible for technical
and operational oversight.
John Steele
METALLURGY,
ENGINEERING AND
CAPITAL PROJECTS
EXECUTIVE
the
following the Merger
John Steele
executive
is
responsible for capital projects and
provides operational and engineering
oversight to the group, a role he
assumed
in
January 2019. He joined Randgold
in 1996 and was responsible for
the successful construction and
commissioning of Randgold’s Morila,
Loulo, Tongon, Gounkoto and Kibali
mines.
Darian Rich
Darian Rich
HUMAN RESOURCES
HUMAN RESOURCES
EXECUTIVE
EXECUTIVE
management,
Darian Rich, who has more than
in human
28 years’ experience
resource
was
appointed Executive Vice-President,
Talent Management, in July 2014,
when he was tasked with attracting,
retaining and developing exceptional
people.
Simon Bottoms
Simon Bottoms
MINERAL RESOURCE
MINERAL RESOURCE
MANAGEMENT AND
EVALUATION
EXECUTIVE
Simon Bottoms
joined Randgold
in 2013 and following the Merger
in 2019, served as the Mineral
for Barrick’s
Resource Manager
Africa and Middle East
region,
responsible for leading geology, mine
planning and associated operational
execution within the region. In
October 2022, he was appointed
Mineral Resource Management
and Evaluation Executive. He is
a Chartered Geologist and has a
Master’s degree in Geology from the
University of Southampton.
oversees
Grant Beringer
all
sustainability related aspects for the
company and is a member of the
Environmental & Social Oversight
Committee. He holds an MSc in
Environmental Management and
has over 19 years’ experience in the
environmental and social consulting
industry.
Poupak
Bahamin
Bahamin
GENERAL COUNSEL
GENERAL COUNSEL
GENERAL COUNSEL
Poupak Bahamin joined Barrick in
2020 as Deputy General Counsel
and was
appointed General
Counsel in April 2022. Previously,
she served as a partner and co-
head of mining US at Norton Rose
Fulbright. Poupak has over 30
years’
legal experience having
practiced in Canada, France and
the United States. She has been
listed in Who’s Who Legal Directory
for Mining and
recognized by
Chambers Global as a DRC Foreign
Expert for general business law as
well as corporate and M&A work.
Joel Holliday
Joel Holliday
EXECUTIVE VICE-
PRESIDENT,
EXPLORATION
Joel Holliday
joined Barrick as
Senior Vice President for Global
Exploration following the Merger in
2019. Previously he had managed
Randgold’s exploration teams for
15 years with discoveries including
Gounkoto and Loulo 3. Joel assumed
his current role in November 2021.
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Barrick Gold Corporation | Annual Report 2022
17
FINANCIAL
REVIEW
Record annual returns to shareholders,
non-core assets divested, the highest
long-term credit rating in the gold mining
industry and, most importantly, ongoing
replacement of reserves net of depletion
are the hallmarks of results which
differentiate us from our peers.
The significance of having the best assets in the gold mining
industry is evident when we face economic challenges. Inflation
was the new threat that had an impact across the industry in
2022, principally in the form of higher energy prices and the
flow-through effect which put pressure on our margins at a
time when gold and copper prices were also trending lower.
Notwithstanding this, Barrick generated more than $11 billion
in revenue and adjusted EBITDA marginsi remained above
50% for the year.
Ultimately this differentiated operating model underpinned our
ability to return a record $1.6 billion to shareholders in the form
of dividends and share buybacks in 2022 (and $4 billion over
the last four years inclusive of returns of capital). At the same
time as delivering these returns, we have been reinvesting in
the business to ensure we can maintain these returns in years
to come, increasing our attributable capital expenditures by
approximately 25% in 2022.
Some of the value of this investment will crystallize in 2023
with the ramp up of the plant expansion at Pueblo Viejo and
the benefits of the Third Shaft at Turquoise Ridge which was
commissioned at the end of 2022. In the next 12 months, we
will be making significant investments in our growth capital,
including investments in solar power projects under way in
Nevada and Mali, which will deliver both lower energy costs
and a reduced carbon footprint. Over the next five years, we
expect group production to increase slightly and unit costs to
decline.
The performance dividend policy that we established at the
start of 2022 delivers a predictable base dividend payable
through the cycle while still providing our investors with
exposure to the upside that comes from higher gold prices.
Higher returns are expected to be realized through delivery of
our growth plans and hence it is important that we continue
to identify opportunities to drive cost efficiencies, maintain
our capital discipline and retain a simplified operating model.
We have renewed the $1 billion share buyback program for
another 12 months, providing us with an additional tool to
manage our capital structure, while our A3 long-term credit
rating from Moody’s highlights the strength of our balance
sheet and lowers our cost of debt.
Our copper business is a further source of differentiation from
our peers and made a signifi cant contribution to the bottom
line in 2022. We are excited by the growth that Reko Diq is
expected to deliver and the potential to turn Lumwana into a
Tier One Copper Asset through the development of a Super Pit.
Finally, our industry-leading general and administrative costs
have remained at the same low level over the last three years.
This is a function of both our efforts to rationalize the portfolio
as well as the systems transformation journey that gives us
better visibility of our costs and the ability to benchmark and
manage our operations.
18
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Identifying and effectively dealing with risk is key to a safe and
sustainable business and is an integral part of how we protect
and create value. Our risk management process is designed
to enable us to identify, evaluate, plan and manage risks,
including new and emerging risks that could have an impact on
our business and this will continue to be another driver of our
competitive advantage in a world that is becoming increasingly
less predictable.
Graham Shuttleworth
Senior Executive Vice-President, Chief Financial Officer
BARRICK 5-YEAR GOLD OUTLOOKii
Gold production (attributable) Moz
Total gold capital expendituresi (attributable) $ billion
6.0
5.0
4.0
3.0
2.0
1.0
0
FINANCIAL REVIEW (CONTINUED)
Cost of Salesi, Total Cash Costsi
and AISCi, $/oz
1,500
1,250
1,000
750
500
250
0
2022
2023
2024
2025
2026
2027
North America
Gold Equivalent Ounces
Latin America and Asia Pacific
Cost of Sales
Total Cash Costs
AISC
Africa and Middle East
Total Gold Capital
All metrics are exclusive of Porgera.
Royalty expenses included in the per ounce cost metrics are based on a gold price assumption of $1,650/oz for 2023 onwards.
Our realized gold pricei in 2022 was $1,795/oz.
Gold Equivalent Ounces (GEO) are calculated using reserve prices – $1,300/oz for gold and $3.00/lb for copper.
BARRICK 5-YEAR COPPER OUTLOOKii
Copper production (attributable) Mlbs
Total copper capital expendituresi (attributable) $ million
600
500
400
300
200
100
0
Cost of Salesi, C1 Cash Costsi
and AISCi, $/lb
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0
2022
2023
2024
2025
2026
2027
Lumwana
Cost of Sales
C1 Cash Costs
AISC
Zaldívar
Jabal Sayid
Total Copper Capital
Royalty expenses included in the per pound cost metrics are based on a copper price assumption of $3.50/lb for 2023 onwards.
Our realized copper pricei in 2022 was $3.85/lb.
Barrick Gold Corporation | Annual Report 2022
19
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GOLD MARKET OVERVIEW
The average price of gold in 2022 was $1,800/oz, a slight increase over the $1,799/oz
average in 2021. $1,800/oz was the highest annual average price on record, surpassing
the previous high reached in 2021, and was the seventh straight year of annual average
gold price increases.
2022 was another year of global economic challenges, led by
the impact of the invasion of Ukraine by Russia, continued
Covid-19 lockdowns in China, high levels of inflation and
rising interest rates. Through these difficult periods, gold has
continued to underscore its value as a safe haven investment.
Gold prices ended 2022 at $1,814/oz, above the annual
average for the year and have continued to be strong in the
early months of 2023.
During the worst impacts of the Covid-19 pandemic, some
central banks looked to their holdings of gold as a source
of liquidity in difficult economic times, with their ability to do
so providing a strong statement as to why gold is a valuable
reserve asset and a key source of reserve diversification.
The strong year-over-year increase in net purchases in 2022
continues to show that central banks view gold positively and
as a long-term store of value.
After historically low global nominal interest rates were put
in place in 2020, including a benchmark rate range of 0% to
0.25% in the United States, to help counteract the negative
economic impact of the Covid-19 pandemic, benchmark
interest rates were raised substantially during 2022 to manage
inflation. Rising interest rates and a significant increase in the
value of the trade-weighted US dollar had a negative impact
on gold prices during the middle part of 2022, with the price
falling from a high of $2,070/oz in March 2022 to a low of
$1,615/oz in September 2022. These trends subsequently
reversed, with
inflation expectations decreasing due to
the impact of higher interest rates. With inflation declining,
expectations of a slowing rate of benchmark interest rate
increases in the United States helped lead to a decline in the
value of the trade-weighted US dollar, allowing gold prices to
trade back above $1,800/oz prior to the end of 2022 and back
above $1,900/oz in early 2023.
Overall demand for gold remained strong, with the World Gold
Council reporting demand at an 11-year high, reflecting an
18% increase over the prior year, led by significant growth
in purchases by global central banks and an increase in
investment demand.
Despite the increase in overall investment demand, the World
Gold Council reported that collective ETF gold holdings
decreased by 110 tonnes during the year, though this was
less than the 189 tonne decrease in holdings during 2021.
Investment demand was helped by an increase in purchases
of bars and coins, which rose 2% versus 2021.
Central bank purchases rose by over 150% year-over-year,
representing the highest level of net purchases in over 50
years. The World Gold Council estimates that global central
banks added 1,136 tonnes to their reserves during 2022, the
13th consecutive year of net purchases. During late 2022,
China reported its first increases in gold reserves since 2019.
This could have a strong positive impact going forward if
purchases continue.
20
Annual Report 2022 | Barrick Gold Corporation
Global jewellery consumption moderated in 2022, declining 3%
versus the prior year after a strong increase in 2021 following
a long-term low in 2020 due to the global impact of Covid-19.
The decline in jewellery consumption in 2022 was led by a 15%
reduction in China that was impacted by Covid-19 lockdowns
in the country. As a result of the decrease in China, India
regained the mantle of the country with the highest level of
gold jewellery consumption. On a combined basis, India and
China represented approximately 56% of global gold jewellery
consumption in 2022, down from 60% in the prior year.
Gold demand for electronics and other industrial uses fell by
7% in 2022, due in part to supply chain and labor challenges
experienced during the year.
Overall supply of gold in 2022 increased by 2%, due mainly to
modest increases in mine production and recycled gold.
The supply of recycled gold increased by 1%, but was still 30%
lower than the all-time high reached in 2009 despite the record
high annual average gold price.
Global mine production rose for the second year in a row but
still remained approximately 1% below the peak reached in
2018, highlighting the difficulty that the mining industry faces
in increasing production despite higher demand and the
second straight year of record high annual average prices.
As gold prices have increased and capital has become more
readily available in recent years, there is continued evidence
of increased spending on exploration by mining companies,
but the costs of mine construction and the time required for
environmental studies and permitting activities before reaching
the production stage means that a return to sustained global
production growth remains a challenge.
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GOLD AND COPPER MARKET OVERVIEW (CONTINUED)
COPPER MARKET
OVERVIEW
In 2022, the price of copper remained strong, with an average
annual price of $3.99/lb, modestly down from 2021’s all-time
annual average high of $4.23/lb.
Early in the pandemic period, copper prices were negatively
impacted by the global reduction in manufacturing and
economic activity, falling to a four-year low of $1.98/lb in
March 2020.
Copper prices recovered strongly over the next two years,
reaching an all-time high of $4.92/lb in March 2022 as a result
of an uptick in demand from increased manufacturing activity
and a rebound in economic growth, low levels of global
copper stockpiles and constrained mine supply.
Shortly after reaching the all-time high, copper prices fell
to a 19-month low of $3.15/lb in July 2022 as a result of a
strengthening trade-weighted US dollar, recession concerns
and pandemic-related lockdowns in China. Prices rose over
the remainder of the year and into early 2023, as China ended
lockdown measures and the US dollar weakened.
China’s GDP growth fell to 3.0% in 2022 as a result of Covid-19
lockdown measures. As China is by far the world’s largest
consumer of copper, this relatively low level of economic
growth had a significant impact on copper demand, and
the price of copper, during the year. With the International
Monetary Fund projecting an increase in China’s GDP growth
to 5.2% in 2023, this should have a corresponding positive
impact on copper demand.
In the longer run, the increase in the volume of copper that
is used in the manufacture of electric vehicles versus those
with combustion engines bodes well for copper demand, as
electric vehicles are poised to comprise a growing share of all
vehicles produced over the next decade. Combined with the
copper that will be required to build out the electrical grids to
support the anticipated growth in usage of electric vehicles,
the outlook for copper demand in the coming years remains
very positive.
Since the turn of the century, as the global economy has
undergone a number of significant challenges, the market
prices of both gold and copper have each increased
significantly, with copper prices experiencing greater volatility
and gold prices showing more consistent strength. Over this
period, as well as during 2022, gold and copper prices have
both outpaced the S&P 500 Total Return Index, demonstrating
the long-term benefits of holding hard assets in an investment
portfolio.
GOLD ETFS & SIMILAR PRODUCTS
Tonnes, net
1,000
800
600
400
200
0
-200
-400
-600
-800
-1,000
Year 10
11 12 13 14 15 16 17 18 19
20 21 22
GLOBAL ANNUAL GOLD MINE PRODUCTION
Tonnes
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Year 10
11 12 13 14 15 16 17 18 19
20 21 22
OFFICIAL SECTOR NET PURCHASES AND
GOLD PRICES
Tonnes, net
1,200
1,000
800
600
400
200
0
Year 10
11 12 13 14 15 16 17 18 19
20 21 22
Central banks and other institutions
London Bullion Market Association gold price
Source: World Gold Council
$/oz
2,000
1,800
1,600
1,400
1,200
1,000
800
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Barrick Gold Corporation | Annual Report 2022
21
NORTH AMERICA1
Nevada Gold Mines (61.5%)
100% production: 3,028koz
Attributable production: 1,862koz
Carlin Complex
100% production: 1,571koz
Attributable production: 966koz
P&P Reservesi: 10Moz
M&I Resources2,i: 19Moz
Inferred Resources2,i: 5.5Moz
Cortez Complex3
100% production: 731koz
Attributable production: 450koz
P&P Reservesi: 9.6Moz
M&I Resources2,i: 13Moz
Inferred Resources2,i: 4.4Moz
Goldrush (61.5%)
Turquoise Ridge
100% production: 459koz
Attributable production: 282koz
P&P Reservesi: 8.0Moz
M&I Resources2,i: 12Moz
Inferred Resources2,i: 0.79Moz
Phoenix
100% production: 177koz
Attributable production: 109koz
P&P Reservesi: 2.0Moz
M&I Resources2,i: 3.9Moz
Inferred Resources2,i: 0.32Moz
Long Canyon
100% production: 90koz
Attributable production: 55koz
M&I Resources2,i: 0.82Moz
Inferred Resources2,i: 0.18Moz
Hemlo (100%)
100% production: 133koz
P&P Reservesi: 1.7Moz
M&I Resources2,i: 3.6Moz
Inferred Resources2,i: 0.58Moz
Golden Sunlight (100%)4
CANADA
USA
Corporate Office, Toronto
Tier One gold mines
Other gold mines
Pipeline projects
In closure
1
2
3
4
All figures as at December 31, 2022.
Figures for mineral reserves and mineral
resources are attributable to Barrick.
Mineral resources are reported inclusive
of mineral reserves.
Mineral reserves and resources at Cortez
are reported inclusive of Goldrush.
Golden Sunlight is currently reprocessing
tailings, producing a sulphur concentrate
as fuel for the refractory processing
facilities at Nevada Gold Mines.
Donlin Gold (50%)
M&I Resources2,i: 20Moz
Inferred Resources2,i: 3.0Moz
Fourmile (100%)
M&I Resources2,i: 0.49Moz
Inferred Resources2,i: 2.7Moz
22
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NORTH AMERICA (CONTINUED)
Barrick is the largest gold producer in the United States. Nevada
Gold Mines (NGM) is the single largest gold mining complex in
the world and anchors the group’s production from this region.
Barrick operates and owns 61.5% of this joint venture, which
includes three of the company’s Tier One Gold assets – Carlin,
Cortez and Turquoise Ridge. In 2022, attributable gold production
from NGM was approximately 1.9 million ounces.
ATTRIBUTABLE GOLD PRODUCTION
GOLD COST OF SALESi, TOTAL CASH COSTSi AND AISCi
koz
2,500
2,000
1,500
1,000
500
0
2,100
to
2,300
$/oz
1,400
1,200
1,000
800
600
400
200
0
2021
2022
2023
(est)1
1,160
to
1,240
1,170
to
1,250
820
to
880
2021
Cost of sales
2022
2023 (est)1
Total cash costs
AISC
1
Based on the midpoint of the guidance range.
1
Based on the midpoint of the guidance range.
ATTRIBUTABLE GOLD MINERAL
RESERVES AND RESOURCES1,i
NORTH AMERICA 5-YEAR GOLD OUTLOOKii
Moz
80
70
60
50
40
30
20
10
0
Gold production (attributable) Moz
Total gold capital expendituresi (attributable) $ billion
Cost of sales2,i
Total cash costs2,i
AISC2,i
$/oz
1,500
3.00
2.50
2.00
1.50
1.00
0.50
0
Proven
and
probable
reserves
Measured
and
indicated
resources
Inferred
resources
1,250
1,000
750
500
250
0
2022
2023
2024
2025
2026
2027
Carlin
Phoenix
Cortez
Hemlo
Turquoise Ridge
Long Canyon
Cost of sales
Total cash costs
AISC
Total capital
1
2
Mineral resources are inclusive of mineral reserves.
Royalty expenses included in the per ounce cost metrics are based on a gold price assumption of $1,650/oz for 2023 onwards. Our realized gold pricei in
2022 was $1,795/oz.
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Barrick Gold Corporation | Annual Report 2022
23
NORTH AMERICA (CONTINUED)
The creation of the NGM joint venture (JV) was driven by
the opportunity to unlock value through the combination of
Barrick’s and Newmont’s assets in Nevada. This is shown by
the extension of process facility lives, ore routing improving
recovery and reducing costs, and the removal of toll treatment
charges lowering costs and improving the cut-off grade at
Turquoise Ridge. In addition, the improvement of orebody
knowledge and expertise following the establishment of the
JV continues to deliver additional resources and exploration
opportunities along the fence lines of the properties previously
unexplored.
The Turquoise Ridge complex consists of multiple open pit and
underground mines as well as an autoclave, oxide mill and heap
leach pads. The high-grade Turquoise Ridge underground
mine is the value driver of the complex. The Third Shaft was
commissioned in Q4 2022 and will provide additional ventilation
for underground mining operations, as well as shorter haulage
distances. At the same time, infrastructure investments are
being made at the Sage mill to improve performance and
reliability at higher throughput volumes. Growth for Turquoise
Ridge continues at the BBT Corridor, with additional resources
added this year, along with continuity confirmed by exploration.
The Carlin complex consists of multiple open pit and
underground mines and several processing facilities. These
include two roasters, an autoclave, an oxide mill and heap
leach pads. Pouring its 100 millionth ounce of gold in 2022,
Carlin rivals any gold complex in the world and with additions
to resources at Ren and North Leeville, where mineralization
is open in all directions, production will continue well into the
future. Elsewhere at the Carlin complex, resources increased
year on year from the Goldstrike underground, Leeville and the
Gold Quarry open pit. In 2023, the Goldstrike autoclave will be
converted to a carbon-in-leach (CIL) operation allowing earlier
treatment of long-term stockpiles at higher recovery and the
Gold Quarry roaster will be upgraded to improve environmental
and operational performance.
The Cortez complex consists of multiple open pit and
underground mines and several processing facilities. These
include an oxide mill and heap leach pads with refractory
material transported to and processed at the Carlin complex.
Pouring its first gold over 150 years ago, Cortez is expected
to continue producing long into the future through the addition
of projects such as Goldrush, Robertson and Fourmile1. The
final plan of operations has been submitted for Goldrush and
the issuance of a Record of Decision (ROD) is expected in
the first half of 2023, with commercial production planned
for 2026. Maiden reserves were declared at Robertson in
2022 while resources continued to grow, with additional
exploration upside being further tested at Distal in 2023. This
growth broadens support of Barrick’s plan for the deposit to
contribute meaningfully to Cortez’s production profile and
extending beyond the 10-year outlook. Below Cortez Hills
underground, successful testing of the Hanson target has
increased confidence and drilling continues into 2023.
Completing the NGM portfolio are Phoenix and Long Canyon.
At Phoenix, the copper by-product generated by the mine
provides diversification and further cash flow growth from this
strategic metal. The focus at Long Canyon is now shifting to
permitting Phase 2. It is expected to recommence mining in
2026 and is included in the group’s 10-year outlook.
Elsewhere in North America, the tailings reprocessing project
at Golden Sunlight was completed in early 2022 and is now
ramping up to full production. The reprocessing of high-
sulphide tailings eliminates the need for perpetual water
treatment, providing a valuable fuel source for the Carlin
roasters and facilitating proper closure. At Hemlo, most
underground physicals have steadily improved, and further
productivity enhancements remain the key focus over the near
term. Studies are also currently under way for the potential
restart of a larger scale open pit, which would greatly improve
Hemlo’s life of mine, and first production could be achieved as
early as 2027.
At Donlin, 2022 saw the largest drill program in over a decade
and significant progress has been made over the last two
years on improving the understanding of the orebodies. The
2023 work program will focus on reviewing a series of key
trade-off studies on infrastructure and processing, assessing
mining scenarios and continuing with permitting and regulatory
engagement.
1
Fourmile is currently 100% owned by Barrick. As previously disclosed,
Barrick anticipates Fourmile being contributed to the Nevada Gold
Mines joint venture if certain criteria are met following the completion of
drilling and the requisite feasibility work.
Facing page: Nevada Gold Mines, USA
24
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NORTH AMERICA (CONTINUED)
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Barrick Gold Corporation | Annual Report 2022
25
LATIN AMERICA AND ASIA PACIFIC1
Pueblo Viejo (60%)
100% production: 713koz
Attributable production: 428koz
P&P Reservesi: 12Moz
M&I Resources2,i: 15Moz
Inferred Resources2,i: 0.26Moz
Zaldívar (50%)
100% production: 196Mlb
Attributable production: 98Mlb
P&P Reservesi: 1,900Mlb
M&I Resources2,i: 4,800Mlb
Inferred Resources2,i: 160Mlb
Norte Abierto (50%)
P&P Copper Reservesi: 2,900Mlb
M&I Copper Resources2,i: 5,500Mlb
Inferred Copper Resources2,i: 1,400Mlb
P&P Gold Reservesi: 12Moz
M&I Gold Resources2,i: 22Moz
Inferred Gold Resources2,i: 4.4Moz
DOMINICAN
REPUBLIC
GUYANA
SURINAME
Veladero (50%)
100% production: 389koz
Attributable production: 195koz
P&P Reservesi: 1.9Moz
M&I Resources2,i: 2.8Moz
Inferred Resources2,i: 0.27Moz
Balochistan,
PAKISTAN
Reko Diq (50%)4
M&I Copper Resources2,i: 18,000Mlb
Inferred Copper Resources2,i:
4,600Mlb
M&I Gold Resources2,i: 15Moz
Inferred Gold Resources2,i: 3.7Moz
PAPUA NEW
GUINEA
Pierina (100%)
PERU
CHILE
JAPAN
ARGENTINA
Porgera (24.5%)3
P&P Reservesi: 1.2Moz
M&I Resources2,i: 2.5Moz
Inferred Resources2,i: 0.82Moz
Tier One gold mines
Other gold mines
Copper mines
Pipeline projects
In closure
26
Annual Report 2022 | Barrick Gold Corporation
Pascua-Lama (100%)
M&I Resources2,i: 21Moz
Inferred Resources2,i: 0.86Moz
Alturas (100%)
Inferred Resources2,i: 5.4Moz
1
2
3
4
All figures as at December 31, 2022. Figures for mineral
reserves and mineral resources are attributable to Barrick.
Mineral resources are reported inclusive of mineral reserves.
Porgera mineral reserves and mineral resources are reported
on a 24.5% interest basis, reflecting Barrick’s expected
ownership interest following the implementation of the binding
February 3, 2022 Commencement Agreement.
Reko Diq mineral resources are reported on a 50% interest
basis, reflecting Barrick’s ownership interest following the
completion of the transaction allowing for the reconstitution
of the project on December 15, 2022. This completed the
process that began earlier in 2022 following the conclusion of
a framework agreement among the governments of Pakistan
and Balochistan province, Barrick and Antofagasta plc, which
provided a path for the development of the project under a
reconstituted structure. The reconstituted project is held 50%
by Barrick and 50% by Pakistani stakeholders. Barrick is the
operator of the project.
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LATIN AMERICA AND ASIA PACIFIC (CONTINUED)
Barrick’s Latin America and Asia Pacific portfolio includes
operations and projects in South America, Dominican Republic,
Pakistan and Papua New Guinea. This region continued to drive
Barrick’s growth pipeline, with the Pueblo Viejo mine in the
Dominican Republic adding 6.5 million ouncesi of attributable proven
and probable reserves and significant progress made towards
securing a potential life of mine extension beyond the 2040s.
ATTRIBUTABLE GOLD PRODUCTION
GOLD COST OF SALESi, TOTAL CASH COSTSi AND AISCi
koz
1,000
750
500
250
0
2021
2022
$/oz
1,400
1,200
1,000
800
600
400
200
0
630
to
700
2023
(est)1
1,260
to
1,340
1,110
to
1,190
800
to
860
2021
Cost of sales
2022
2023 (est)1
Total cash costs
AISC
1
Based on the midpoint of the guidance range.
1
Based on the midpoint of the guidance range.
ATTRIBUTABLE GOLD MINERAL
RESERVES AND RESOURCES1,i
LATIN AMERICA AND ASIA PACIFIC 5-YEAR GOLD OUTLOOK2,ii
Moz
80
70
60
50
40
30
20
10
0
1.50
1.25
1.00
0.75
0.50
0.25
0
Proven
and
probable
reserves
Measured
and
indicated
resources
Inferred
resources
Gold production (attributable) Moz
Total gold capital expendituresi (attributable) $ billion
Cost of sales3,i
Total cash costs3,i
AISC3,i
$/oz
1,500
1,250
1,000
750
500
250
0
2022
2023
2024
2025
2026
2027
Pueblo Viejo
Veladero
Cost of sales
Total cash costs
AISC
Total capital
1
2
3
Mineral resources are inclusive of mineral reserves.
Excludes Porgera, which was placed on temporary care and maintenance in April 2020. We expect to update our guidance to include Porgera following the
execution of all the definitive agreements to implement the binding February 2022 Porgera Project Commencement Agreement (which replaces the Framework
Agreement signed in April 2021) with the Government of Papua New Guinea and the finalization of a timeline for the resumption of full mine operations.
Royalty expenses included in the per ounce cost metrics are based on a gold price assumption of $1,650/oz for 2023 onwards. Our realized gold pricei in
2022 was $1,795/oz.
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Barrick Gold Corporation | Annual Report 2022
27
LATIN AMERICA AND ASIA PACIFIC (CONTINUED)
Pueblo Viejo consists of two main open pits, Moore and
Monte Negro, with processing through autoclaves. The plant
expansion and mine life extension projects remain on track,
with commissioning of the plant expansion well under way and
the new tailings storage facility (TSF) in the permitting phase.
These expansions are expected to extend Pueblo Viejo’s mine
life to 2040i and beyond, as well as doubling the significant
contribution the mine has already made to the economy of the
Dominican Republic.
The Pueblo Viejo plant expansion is designed to increase
throughput to approximately 14 million tonnes per annum
(Mtpa). Areas of the expanded plant are being commissioned
and handed over from construction to operations and full plant
capacity is planned to be reached by Q3 2023. The plant
expansion will allow the operation to maintain average annual
gold production of more than 800,000 ounces per year after
2022 (on a 100% basis)i. Site investigation works continue to
plan a feasibility level design for the new TSF in 2024.
Close to the existing Pueblo Viejo infrastructure, exploration
drilling at both the Main Gate and Arroyo Del Rey targets has
intersected alteration and mineralization and further work is being
carried out to understand the potential of this mineralization.
Additionally, Barrick is progressing early-stage exploration on a
regional portfolio in the country.
At Veladero in Argentina, significant progress was made on
Phase 7A of the leach pad expansion with the project now
commissioned and providing stacking capacity through to the
second half of 2024. Construction on the next phase, Phase
7B, is planned to re-start in Q4 2023 for completion in 2024.
In addition, the mine was successfully connected to grid power
and is now mainly powered by renewable energy sourced from
Chile.
Exploration drilling on multiple targets around the Veladero
operation progressed through the year and geological work
continued on other high priority projects in the district, which
includes the large landholding across the El Indio belt as well as
further afield in Argentina.
Reko Diq in Pakistan is one of the largest undeveloped copper-
gold porphyry projects in the world and is expected to double
the size of the company’s current copper production profile
when it is commissioned.
In December 2022, Barrick executed definitive agreements
with the governments of Pakistan and Balochistan. Reko Diq
will be operated by Barrick, which owns 50% of the project,
with Balochistan holding 25% and three Pakistani state-owned
enterprises sharing the remaining 25%. The shareholding
structure is in line with Barrick’s policy of benefit-sharing
partnerships with its host countries.
Significant technical and evaluation work was completed prior to
2011, including an initial feasibility study (FS) in 2010. An update
of this FS is planned for completion by the end of 2024, with
2028 targeted for first production.
The updated FS will focus on:
■ Optimizing the flow sheet for the 40Mtpa base case under
Phase 1 and expansion to 80Mtpa under Phase 2, while
maintaining the optionality to go above 80Mtpa.
■ Obtaining adequate
information on
the community
development aspects as well as water and power supply
options. ESG will also be an important focus in the updated
study.
Some of the baseline work has begun and the team has been
in-country obtaining data for the socio-economic, ecological
and water use surveys. The surrounding communities have
been very receptive of this work and there is significant
opportunity for Barrick to contribute to the development of
these communities as the Reko Diq project is advanced. The
exploration team is also now focused on identifying untested
upside around the known porphyries as well as upgrading
the geological understanding of the deposits as part of the
feasibility study update.
In Papua New Guinea (PNG), several important milestones
were achieved in 2022 on the path to re-opening the Porgera
mine including the signing of the Shareholders Agreement for,
and incorporation of, the project company and the holding of
its first board meeting. Barrick continues to work with the
PNG government to finalize the remaining agreements and
satisfy other conditions necessary for the resumption of full
mine operations.
Facing page: Pueblo Viejo, Dominican Republic
28
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LATIN AMERICA AND ASIA PACIFIC (CONTINUED)
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Barrick Gold Corporation | Annual Report 2022
29
AFRICA AND MIDDLE EAST1
Loulo-Gounkoto Complex (80%)
100% production: 684koz
Attributable production: 547koz
P&P Reservesi: 6.7Moz
M&I Resources2,i: 9.1Moz
Inferred Resources2,i: 1.9Moz
Kibali (45%)
100% production: 750koz
Attributable production: 337koz
P&P Reservesi: 4.6Moz
M&I Resources2,i: 7.1Moz
Inferred Resources2,i: 1.1Moz
Tongon (89.7%)
100% production: 201koz
Attributable production: 180koz
P&P Reservesi: 0.56Moz
M&I Resources2,i: 0.77Moz
Inferred Resources2,i: 0.064Moz
MALI
SENEGAL
CÔTE
D’IVOIRE
North Mara (84%)
100% production: 313koz
Attributable production: 263koz
P&P Reservesi: 3.0Moz
M&I Resources2,i: 4.6Moz
Inferred Resources2,i: 0.93Moz
Tier One gold mines
Other gold mines
Copper mines
In closure
Bulyanhulu (84%)
100% production: 233koz
Attributable production: 196koz
P&P Reservesi: 2.7Moz
M&I Resources2,i: 5.0Moz
Inferred Resources2,i: 4.6Moz
30
Annual Report 2022 | Barrick Gold Corporation
EGYPT
SAUDI
ARABIA
Jabal Sayid (50%)
100% production: 151Mlb
Attributable production: 75Mlb
P&P Reservesi: 670Mlb
M&I Resources2,i: 830Mlb
Inferred Resources2,i: 44Mlb
DRC
Buzwagi (84%)
ZAMBIA
TANZANIA
Lumwana (100%)
100% production: 267Mlb
P&P Reservesi: 6,200Mlb
M&I Resources2,i: 13,000Mlb
Inferred Resources2,i: 8,700Mlb
1
2
All figures as at December 31, 2022. Figures for mineral
reserves and mineral resources are attributable to Barrick.
Mineral resources are reported inclusive of mineral reserves.
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AFRICA AND MIDDLE EAST (CONTINUED)
Barrick is the largest gold producer in Africa. Loulo-Gounkoto
in Mali and Kibali in the DRC are both Tier One Gold assets,
contributing 884,000 attributable ounces of gold during 2022.
Additionally, the company’s two gold mines in Tanzania, North
Mara and Bulyanhulu, boosted their combined output to 546,0001
ounces in 2022, achieving another step towards their potential Tier
One status in the group’s asset portfolio as a combined complex.
1 On a 100% basis.
ATTRIBUTABLE GOLD PRODUCTION
GOLD COST OF SALESi, TOTAL CASH COSTSi AND AISCi
koz
1,600
1,200
800
400
0
1,450
to
1,600
2021
2022
2023
(est)1
$/oz
1,400
1,200
1,000
800
600
400
200
0
1,130
to
1,210
1,080
to
1,160
820
to
880
2021
Cost of sales
2022
2023 (est)1
Total cash costs
AISC
Jabal Sayid (50%)
100% production: 151Mlb
Attributable production: 75Mlb
P&P Reservesi: 670Mlb
M&I Resources2,i: 830Mlb
Inferred Resources2,i: 44Mlb
1
Based on the midpoint of the guidance range.
1
Based on the midpoint of the guidance range.
ATTRIBUTABLE GOLD MINERAL
RESERVES AND RESOURCES1,i
AFRICA AND MIDDLE EAST 5-YEAR GOLD OUTLOOKii
Lumwana (100%)
100% production: 267Mlb
P&P Reservesi: 6,200Mlb
M&I Resources2,i: 13,000Mlb
Inferred Resources2,i: 8,700Mlb
Moz
30
20
10
0
Gold production (attributable) Moz
Total gold capital expendituresi (attributable) $ billion
Cost of sales2,i
Total cash costs2,i
AISC2,i
$/oz
2.50
2.00
1.50
1.00
0.50
0
Proven
and
probable
reserves
Measured
and
indicated
resources
Inferred
resources
1,500
1,200
900
600
300
0
2022
2023
2024
2025
2026
2027
Loulo-Gounkoto
Kibali
North Mara
Bulyanhulu
Tongon
Cost of sales
Total cash costs
AISC
Total capital
1
2
Mineral resources are inclusive of mineral reserves.
Royalty expenses included in the per ounce cost metrics are based on a gold price assumption of $1,650/oz for 2023 onwards. Our realized gold pricei in
2022 was $1,795/oz.
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Barrick Gold Corporation | Annual Report 2022
31
AFRICA AND MIDDLE EAST (CONTINUED)
The Loulo-Gounkoto complex produced in the top-half of
guidance for 2022 and replaced mined reserves for the
fourth successive year. At Gounkoto, the complex’s third
underground mine is on track to begin ore production from
stoping in the second quarter of 2023. Expansion of the
solar plant progressed during the year with early procurement
enabling the second phase to begin ahead of plan. The
Loulo-Gounkoto complex was one of the largest taxpayers
in Mali and has been formally thanked by the government for
its role in enabling the tax department to achieve its revenue
targets for 2022.
At Kibali, Barrick continues to extend the mine’s life beyond
10 years. An updated underground feasibility study on the
11000 lode of the KCD orebody was completed during 2022.
Mineral reserves increased at Kibali, net of depletion, for the
fourth successive year. The winder change-out planned for
the fourth quarter was completed ahead of time allowing
additional monitoring during the ramp up phase and aligning
with the curing phase of the underground paving project.
In Tanzania, total production output from Bulyanhulu and
North Mara continued to support their potential Tier One
status as a combined complex. At North Mara, the owner
mining strategy has completed a successful ramp up as
part of the ongoing open pit expansion, with improved
efficiencies already evident. North Mara is now recognized as
Tanzania’s largest taxpayer. Barrick’s presence in Tanzania
was expanded through the acquisition of the Tembo licence,
and it plans to extend its footprint further through exploration
licence consolidation.
Through successful exploration, the Tongon gold mine in
Côte d’Ivoire further extended its life to 2026 and it continues
to pursue growth through exploration targets.
Copper mines Lumwana and Jabal Sayid both met
production guidance for the year with the Lumwana copper
mineral resource base growing by 89%, net of depletion,
relative to 2021. During Q4 2022, Lumwana started the pre-
feasibility study for the Super Pit, targeting expansions with
the potential to increase its life of mine beyond 2080. In
Saudi Arabia, new joint venture agreements with Ma’aden
were completed for two prospective exploration projects
comprising the Jabal Sayid South (three permits) and Umm
Ad Damar licence areas. This is the first step in delivering
Barrick’s strategy to create additional value from nearby
opportunities by leveraging the existing infrastructure at
Jabal Sayid and its demonstrated exploration expertise.
It was an exciting year in Egypt as Barrick worked to
establish its exploration programs. Negotiations continued
with the Egyptian Mineral Resource Authority regarding the
Model Mining Exploitation Agreement. Handover of the
Hamash-Sukari exploration licence was completed – the
highest priority licence applied for in the 2020 bid round.
Field teams are currently screening a total land package of
1,675km2 for systems with Tier One potential and assessing
viability of new business opportunities aiming at maiden drill
programs later in 2023.
Facing page: North Mara, Tanzania
32
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AFRICA AND MIDDLE EAST (CONTINUED)
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Barrick Gold Corporation | Annual Report 2022
33
Nevada Gold Mines at the forefront of
mineral processing
The Nevada Gold Mines operations process a wide range of mineralization in the ores
they treat. From simple heap leach ore types to carbonaceous refractory sulphide ores,
NGM can handle the most complex ores in its facilities. The NGM complex not only
hosts many gold processing facilities at the Carlin, Cortez, Turquoise Ridge, Phoenix
and Long Canyon sites, but also conducts copper oxide leaching and copper sulphide
flotation at its Phoenix mine.
It leads the field in the application of carbonaceous refractory
gold sulphide roasting with the Goldstrike and Gold Quarry
roasters, which are coupled with dry milling comminution
circuits.
The pressure oxidation (POX) circuits at Goldstrike and
Turquoise Ridge are suited to refractory sulphide ores with
a lower content of carbonaceous matter. These autoclaves
are coupled with wet milling circuits.
NGM’s whole ore refractory sulphide processes have always
operated sulphur deficient and alternative fuels were sought
to augment the ore fuel content. The latest development
in this area is the Phoenix sulphide concentrate project,
which will supply more sulphide fuel to NGM’s roasters and
autoclaves as well as recover gold from the Phoenix tails
stream. Recent ore testwork and modelling demonstrated
a viable route to limit copper in the concentrate product and
make the process economics more attractive.
The choice of processing facility for each ore type depends
on many factors such as the:
■ Gold grade;
■ Level of oxidation;
■ Refractory sulphide material;
■ Carbonate content;
■ Presence of mercury;
■ Presence of arsenic; and
■ Proximity to the facility.
HUMBOLDT
COUNTY
Barrick will continue to innovate to remain at the forefront
of metallurgical processing expertise and deploy this where
applicable throughout its global operations.
N
NGM’s metal plan optimizes the feed to
each facility based on blending the ores from
many surface and underground locations.
Turquoise
Ridge
Sage Mill
Sonoma Leach Pads
SnowStorm Leach Pads
Izzenhood Heap Leach Facility
ELKO COUNTY
Nevada has always been a center of
excellence
technology.
for processing
Goldstrike implemented a novel thiosulfate
process
leaching
pressure
following
oxidation
for problematic preg-robbing
sulphide ores with gold recovery by resin
adsorption. Following the exhaustion of
these stockpiled problematic ores,
the
plant is being converted back to a more-
conventional POX with carbon-in-leach
(CIL) gold recovery to treat amenable ores
facilitated by the joint venture.
Juniper Mill
Osgood Leach Pad
Goldstrike Roaster
Goldstrike Autoclave
North Area Leach Pad
Elko
Heap Leach Facility
Wells
Long
Canyon
Winnemucca
Valmy
Gold Quarry Roaster
Mill Facilities
Battle
Mountain
PERSHING
COUNTY
Greater
Phoenix
Copper Heap Leach Facility
Cortez
Area 30 Leach Pad
LANDER COUNTY
CHURCHILL COUNTY
kilometers
0 10 20 30 40 50
Mill Facilities
Dunphy
Carlin
Beowawe
Carlin 5/6 Heap Leach Facility
Reona Heap Leach Facility
Crescent
Valley
Mill Facilities
Area 34 Leach Pad
WHITE PINE
COUNTY
EUREKA COUNTY
NEVADA GOLD MINES
AOI BOUNDARY
Winnemucca
Elko
NEVADA
Leach Pad
Mill
Autoclave
Roaster
34
Annual Report 2022 | Barrick Gold Corporation
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Mining our mobile data
Remote monitoring underscores the value of
real-time data in correcting operator behaviour
and reducing maintenance costs.
A 24-month trial to remotely analyze mobile data from Barrick’s Loulo Sandvik Load and
Haul fleet has resulted in a positive improvement in operator behaviour and machine
health, while substantially increasing machine utilization and productivity. The trial has
now been completed and, in Q4 2022, Barrick started a global rollout across all the sites
where Barrick has some 220 connected Sandvik machines while extending the trial to
underground and surface drill fleets as well.
Thanks to extensive training and a joint effort to develop an
engineering solution, the practice has been nearly eliminated.
Overall, a significant reduction in operator events per machine
hour has been a consistent outcome throughout the trial.
The other benefits are better machine utilization and improved
productivity, with the Mean Time Before Failure (MTBF) of
the Loulo fleet increasing despite its age also increasing by
9,000 hours on average, resulting in a significant decrease in
breakdowns and a corresponding decrease in operating costs
per engine hour. Additionally, the dashboard visualization of
the data allows the Barrick team to quickly see trends and
act on them, allowing for the proactive rather than reactive
management of the fleet and allowing Barrick to move to a
predictive maintenance model.
Barrick has been working with the Sandvik Remote Monitoring
Team, based in Tampere, Finland, who run the data from
Loulo’s fleet through their algorithms and predictive models.
They analyze that data, looking for exceptions to set operating
parameters and then report those findings back to Barrick as
event alarms. Additionally, there are three Sandvik Product
Support Specialists based at Loulo who work with the local
teams to maintain connectivity and act on the information from
those reports.
These reports come in various forms:
■ Ad hoc maintenance reports to site maintenance
managers and planners;
■ Weekly operator scorecards to provide feedback on
how an operator can improve;
■ Ad hoc operator guidance reports, which are
typically triggered by an incorrect operator
action and advise what the proper operator
behavior should be to prevent that event
from occurring again; and
■ Defect-based planned maintenance reports,
which ensure that any errors picked up in the
data are added to the planned maintenance
task for that machine.
for
improvement
One of the key benefits of remote monitoring and
real-time data analytics is its ability to quickly
highlight areas
in operator
competency and training. An observation picked
up through the data is the inclination of some
operators to select the incorrect gear up and
down declines, a practice that not only poses a
safety risk but can also prematurely damage the
transmission as it constantly changes gears.
Sandvik data scientists at the Remote Monitoring Service headquarters
in Tampere, Finland.
Barrick Gold Corporation | Annual Report 2022
35
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Kibali – Powering Our Green Agenda
Leaders in Microgrids
The Kibali gold mine in the Haut-Uele province of north-east Democratic Republic of
Congo is a standout example of how Barrick’s self-powered microgrid infrastructures are
confi gured to serve an immediate need and evolve over time with the right foresight to
sustainably deliver cheaper energy with reduced environmental impact.
The Azambi hydropower station near Kibali, DRC.
36
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In order to harness the full potential of the low-cost energy
sources, the reliability of these installations needs to be
exemplary. The Kibali maintenance teams have taken a
big step forward from the traditional annual time-based
maintenance philosophy by
implementing prescriptive
maintenance. Instead of discovering defects by opening up
the plant once a year or, in a worst-case scenario suffering a
breakdown, sensors and instruments are used to detect the
diagnostics of the running plant and feed this into an analytical
model. This model constantly correlates to the current state
with the blueprint or signature of a healthy operational plant.
Further to that, the data from the failure events experienced in
the past are used to create a library of failure blueprints.
The advantage of prescriptive maintenance is twofold: fi rst, the
operating health of every hydropower generator is continuously
monitored and validated in order to produce the maximum
output; and second, the awareness of potential digression
towards a failure signature provides suffi cient time to properly
plan for corrective maintenance. Since implementation of a
prescriptive maintenance approach, there have not been any
catastrophic failures of the plants, and this technology has
been rolled out to the milling plant as well.
Kibali was initially built to use thermal power from high-speed
diesel generator sets (gensets). This power plant forms the
base load capable of delivering approximately 43MW, enough
to power the entire mine at $0.37 per kWh. The abundance of
water during the rainy season and the mine’s close proximity to
the Nzoro and Kibali rivers made the investment in hydropower
a natural choice to drive down both its power generation cost
and greenhouse gas (GHG) emissions. In 2014, the Nzoro II
canal fed hydropower station consisting of four Francis turbines
totalling 22MW was commissioned. Ambarau followed shortly
thereafter in 2016 adding two Kaplan turbines totalling ~10MW
and fi nally in 2018, Azambi added another ~10MW of green
energy to the microgrid from two Kaplan turbines.
Stable operation of the microgrid in island mode requires
frequency control for grid forming as well as a 7MW spinning
reserve from diesel generator sets. The opportunity was
identifi ed to reduce the amount of diesel generator sets which
supply the spinning reserve for the active and reactive power
components of the cyclical winding plant. This spinning
reserve requirement was for eight 3512B gensets to provide
an intermittent load of approximately ~5.7MW, with a transient
reverse power of 1MW running permanently at low load (40%)
and ready to accept a transient load impact (up to 100%).
In 2019, a grid stabilizer based on a Battery Energy Storage
System (BESS) was installed, dramatically offsetting the
spinning reserve requirement and bringing stability to the grid
load variations in the event of load shed events. Only four
gensets are kept running to maintain frequency and voltage,
resulting in a drop in daily diesel consumption during the
rainy season to below 12,000 litres per day. This strategic
investment has paid dividends over time with a unit cost as
low as $0.03 per kWh achieved by August 2022.
In line with Barrick’s GHG emission reduction commitments,
the operation set itself the challenge of achieving zero thermal
power generation during the rainy season. A network system
study and transient analysis was completed considering
different contributions to the grid as well as the impact of a
selection of load start and shed events. The learnings from
other Barrick renewable power installations were incorporated
in this study, achieving the positive outcome that the addition
of a 15MVA BESS would completely offset the use of diesel
generators in the rainy season and 17MW of solar power
could increase the use of renewable energy during the dry
season. The net impact is expected to be an annual reduction
of approximately 21 thousand tonnes of CO2 equivalent
emissions. The area for the solar plant has been cleared and
the engineering design is near completion. Procurement and
delivery of long-lead items are expected through 2023 with
construction to start early in 2024.
Top right: Aerial view of the Kibali grid stabilizer with five
BESS containers and step-up transformers.
Bottom right: Internal view of BESS container housing CAT
bi-directional inverters and 3C Li-ion battery banks.
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Barrick Gold Corporation | Annual Report 2022
37
RESERVES AND RESOURCES
Significant growth in attributable proven and probable gold mineral reserves by 6.7 million
ounces net of depletion, is a result of the continued focus on Tier One assets, and improvements
in the understanding of our orebodies through integration of the geological, geotechnical and
geometallurgical models which continue to unlock further value.
Our strategy of investing in organic growth through exploration
and mineral resource management, as well as our focus on quality
assets, continues to deliver successive reserve growth over and
above annual depletion as demonstrated with the successful
exploration at both the Lumwana and Jabal Sayid mines, which
were the primary drivers in the growth of attributable proven
and probable copper reserves. As a result, Barrick replaced
103% of annual global depletion at consistent quality, effectively
maintaining attributable proven and probable copper mineral
reserves of 12 billion poundsi at 0.38% in 2022, notwithstanding
an increase in the annual reserve price assumption to $3.00/lb.
For Barrick-operated assets, copper mineral reserves for
2022 are estimated using a copper price of $3.00/lb relative to
$2.75/lb in 2021.
The growth in total attributable gold mineral resources of nearly
10% relative to 2021 and of total attributable copper mineral
resources which more than doubled growing by 124% year on
year, both net of annual depletion, underpins the future growth
of our production profile. This was driven by the successful
completion of a preliminary economic assessment supporting
the Lumwana Super Pit expansion, and the incorporation of
Reko Diq following the reconstitution of the project in December
2022.
Attributable measured and indicated gold resources for 2022
stand at 180 million ouncesi at 1.07g/t, with a further 42 million
ouncesi at 0.8g/t of inferred resources. Attributable measured
and indicated copper resources for 2022 stand at 44 billion
poundsi at 0.39%, with a further 15 billion poundsi at 0.4% of
inferred resources.
In 2022, all mineral resources were estimated using a gold
price assumption of $1,700 per ounce and a copper price of
$3.75 per pound, both up from $1,500 per ounce for gold and
$3.50 per pound for copper in 2021 for Barrick-operated assets.
Barrick’s mineral resources for 2022 continue to be reported
on an inclusive basis, incorporating all areas that form mineral
reserves. All open-pit mineral resources are contained within
a Whittle shell, while all underground mineral resources are
contained within optimized mineable shapes.
Reported at $1,300/oz, attributable proven and probable
mineral reserves now stand at 76 million ouncesi at 1.67g/t,
increasing from 69 million ouncesi at 1.71g/t reported at
$1,200/oz in 2021. The change in the commodity prices at which
our mineral reserves are estimated has balanced the inflationary
cost increases across the business, maintaining the quality
of our reserve base and delivering growth organically, rather
than adding lower quality reserves through further increases in
commodity price assumptions. Gold mineral reserve growth
was led by Pueblo Viejo and the Africa & Middle East region,
with nearly 12 million ouncesi of attributable proven and probable
reserve gains in 2022 before depletion.
The Africa & Middle East region converted a net of 2.4 million
ouncesi to attributable proven and probable reserves in 2022,
before depletion, with contributions from Kibali, Loulo-Gounkoto,
North Mara, Bulyanhulu and Tongon. At Loulo-Gounkoto, this was
principally from extensions at the Yalea and Gara underground
mines as well as the Faraba open pit replacing annual depletion.
At Kibali, the completion of an updated underground feasibility
study on the 11000 lode in KCD underground delivered
a 0.62 million ouncei increase in attributable proven and
probable reserves before depletion. At North Mara, a focus on
underground expansion at Gokona has successfully delivered a
0.44 million ouncei increase in attributable proven and probable
reserves before depletion.
The Latin America & Asia Pacific region converted a net of
7.3 million ouncesi to attributable proven and probable reserves.
Most notably, Pueblo Viejo completed a pre-feasibility study for
the new Naranjo TSF, adding 6.5 million ouncesi of attributable
proven and probable reserves, net of depletion, and extending
the mine life beyond 2040v.
The North America region converted a net of 1.8 million ouncesi
to attributable proven and probable reserves, before depletion.
This was primarily driven by the completion of pre-feasibility
studies for the Robertson open pit project at Cortez, as well as
a new pushback in the Hemlo open pit. As a result, Robertson’s
maiden attributable proven and probable gold reserves are
estimated at 1.0 million ouncesi at 0.46g/t. This represents a
milestone for Cortez as a key source of oxide mill feed in the mine
plan. Similarly, the new Hemlo open pit pushback is expected
to start in 2027 adding 0.86 million ouncesi of gold at 1.49g/t to
probable reserves. Proven and probable attributable reserves
for the region are now estimated at 31 million ouncesi at 2.54g/t.
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RESERVES AND RESOURCES (CONTINUED)
In the Africa and Middle East region, the Lumwana copper
mineral resource base grew by 89%, net of depletion, relative
to 2021, demonstrating strong potential as a Tier One copper
asset and providing a robust basis for the ongoing pre-feasibility
study. The reconstitution of the Reko Diq project added an
attributable 18 billion poundsi of copper at 0.44% with 15 million
ouncesi of gold at 0.26g/t to indicated resources, and an
attributable 4.6 billion poundsi of copper at 0.4% with 3.7 million
ouncesi of gold at 0.2g/t to inferred resources. These mineral
resources reflect only three porphyries (H13, H14, H15) as well
as the Tanjeel deposit within the cluster of Western Porphyries.
Alongside the ongoing feasibility study update, the team is also
planning to evaluate further known porphyry occurrences within
the mining lease area.
North America also delivered growth in total attributable mineral
resources, net of depletion, supporting future potential reserve
growth in line with our strategy to fully replace depletion for the
region within a five-year period. This was driven by underground
resource extension drilling at both Goldstrike and Leeville
in Carlin, as well as successful resource definition drilling at
Goldrush and Robertson in Cortez, all of which support the
potential for future reserve growth in this region. Measured and
indicated attributable gold resources for the region increased by
2.8 million ounces to 73 million ouncesi at 2.16g/t, from 70 million
ouncesi at 2.22g/t in 2021. Importantly, inferred attributable gold
resources also increased to 17 million ouncesi at 1.8g/t, from
16 million ouncesi at 2.0g/t in 2021.
2022 mineral reserves and mineral resources are estimated using
the combined value of gold, copper and silver. Accordingly,
mineral reserves and mineral resources are reported for all assets
where copper or silver is produced and sold as a primary product
or a by-product. Barrick’s reserves and resources are reported
to a rounding standard of two significant digits, which remains
unchanged since 2019.
ATTRIBUTABLE GOLD RESERVESi
ATTRIBUTABLE COPPER RESERVESi
Moz
90
80
70
60
50
40
30
20
10
0
2021
Depletion
Net conversion
2022
Blb
14
12
10
8
6
4
2
0
2021
Depletion
Net conversion
2022
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Barrick Gold Corporation | Annual Report 2022
39
EXPLORATION
Exploration is the engine that drives Barrick’s organic growth strategy. Brownfields work
around our existing operations continues to more than replace the ounces of gold and
pounds of copper we extract each year, strengthening our already industry-leading gold
portfolio and growing our copper holdings. At the same time, robust greenfields programs
are hunting down new opportunities in the search for our next Tier One mine.
CREATING VALUE THROUGH EXPLORATION AND OPTIMIZATION
Mines
Reserve definition
Measured & Indicated
Resources
Inferred Resources
Advanced targets
Follow-up targets
Identified targets
Target delineation
37
4
6
1
23
29
45
6
13
12
10
14
19
28
5
5
3
5
6
Feasibility projects and
reserve & resource definition
Exploration targets
22
28
Identified geological
anomalies
Generative
exploration
Africa and
Middle East
North
America
Latin America
and Asia Pacific
Barrick’s exploration is managed using the resource triangle – an integrated business tool. Generative work ensures
a constant supply of targets to the base of the triangle and a set of stringent filters, at progressive levels within
the triangle, ensures the promotion of quality targets and the rejection of inferior ones, with economic deposits
ultimately reaching the pinnacle of the triangle.
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EXPLORATION (CONTINUED)
On the South Uchi project, all results from the 2022 program
were received during the fourth quarter of 2022. 461 till samples
and 1,065 surface rock samples were analyzed during the
summer field mapping and overburden drilling campaigns. Our
fieldwork continues across multiple projects in North America
as we expand our gold and copper focus.
During the year, Barrick entered into an exploration earn-
in agreement over the Pic project which is located on the
continuation of the Hemlo greenstone sequence, approximately
20 kilometers to the northwest of Hemlo. Barrick may earn
up to an 80% interest in the property and completed till
geochemical sampling and mapping as well as logging and
scanning of historical drill core in 2022.
North America
In Nevada, our growth drilling programs at North Leeville and
Ren continue to expand the maiden resources announced last
year and discover new mineralized structures, while work at
North Turf, Cortez Hills Underground, El Nino, and Turquoise
Ridge returned strong results, confirming the potential around
these deposits as we work to convert more ounces to reserves
and expand their footprints. At Robertson, we declared
maiden reserves and increased resources as that deposit is
progressed towards production.
We are progressing our copper strategy across North America
including at Phoenix in Nevada, where drilling has identified
strongly mineralized porphyry beyond the existing model,
highlighting further potential to expand resources.
in Nevada
Our exploration programs
identified multiple
discovery opportunities throughout the year culminating in
the discovery of high-grade, breccia-hosted mineralization
beneath the Dorothy target at Fourmile, confirming significant
remaining upside in this well-endowed trend which includes the
multi-million ounce Goldrush project. Elsewhere in the Cortez
district at the Swift project, an exploration earn-in joint venture
for Nevada Gold Mines, drilling has intersected alteration and
mineralization in lower-plate carbonates over a wide area,
confirming the presence of a significant hydrothermal system.
Around the Turquoise Ridge and Twin Creeks deposits,
exciting targets were identified at Fenceline, South Getchell
and beneath the Mega Pit. Programs to test these targets will
be carried out in 2023.
At Carlin, drilling confirmed open mineralized breccias at the
Golden Egg target in Little Boulder Basin while exploration
drilling to the west of Goldstrike has significantly expanded
the potential along the East Bounding fault system where
framework holes confirmed strong alteration, structural
complexity and breccia development with widespread low-
grade mineralization in a fault corridor that extends for more
than seven kilometers of strike length.
We continue to hunt for opportunities across North America
and entered an exploration agreement with the opportunity to
earn a 100% interest at the Pearl String property, located in
the Walker Lane mineral belt of western Nevada. Work to date
on the property has included geologic mapping, rock and soil
sampling and collection of gravity data to map the underlying
basement rock. This data is being compiled and interpreted
and will lead to target delineation and framework drill testing
in 2023.
In Canada, work at Hemlo focused on improving the geological
understanding and models of the deposit, better defining the
plunging zones of high-grade mineralization which remain
open at depth.
Right: Cortez, Nevada Gold Mines, USA.
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Barrick Gold Corporation | Annual Report 2022
41
EXPLORATION (CONTINUED)
Latin America and Asia Pacific
Our exploration work across the Latam and Asia Pacific area
is focused on targets at all levels of the resource triangle
from growth drilling around the deposits at Veladero and
Pueblo Viejo, to regional generative programs in the hunt
for opportunities across South America and the Asia Pacific
region.
With the reconstitution of the Reko Diq copper-gold project
in Pakistan, the exploration team is focused on identifying
untested upside around the known porphyries as well as
upgrading the geological understanding of the deposits as part
of the feasibility study update.
At Pueblo Viejo, drilling at both the Main Gate and Arroyo
Del Rey targets intersected alteration and mineralization
close to existing infrastructure and further work is required to
understand the potential of this mineralization. Additionally,
Barrick is progressing early stage exploration on a regional
portfolio across the Dominican Republic and initial results from
this work are encouraging.
In Argentina, drilling on multiple targets around the Veladero
operation progressed through the year. Priority targets are
located at Veladero Sur and in the La Ortiga trend where
drilling on a historical target, Morro Escondido, confirmed
wide zones of mineralization at surface which may be able to
be processed at Veladero. The evaluation of this target will
continue through 2023. Geological work continues on other
high priority projects in the district, which includes our large
landholding across the El Indio belt as well as further afield
across Argentina.
In Peru, we are progressing three very prospective early-stage
projects, while we are looking for opportunities across Latam
to rationalize our extensive permit portfolio.
Our work on the Makapa project in Guyana failed to identify
the potential for a large system leading to our exit from that
project, however we remain active in the Guyana Shield and
we are progressing our understanding of the region through
ongoing generative work.
Our Asia Pacific exploration team is evaluating copper and
gold opportunities across the region. In Japan, the Phase One
screening program on the Japan Gold/Barrick Alliance projects
was concluded, leading to six projects being advanced to the
Second Evaluation Phase. Work is in progress currently on the
two priority targets, Mizobe in Kyushu and Aibetsu in Hokkaido.
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EXPLORATION (CONTINUED)
Providing additional ore sources to support the development of
the Super Pit at Lumwana is the main focus of our exploration
work in Zambia, and results from the Lubwe satellite target
continue to confirm its development potential. Beyond
Lumwana and as part of our global copper strategy, we
continue to evaluate opportunities across the Central African
Copperbelt.
In Egypt, the three exploration concessions awarded during
the industry bid-round were handed over to Barrick and
exploration work has started on all of them. We now control
1,675km2 of ground in the Eastern Desert. Meanwhile the
industry negotiations with the government to improve the
attractiveness of the mining code is nearing completion.
At Jabal Sayid in Saudi Arabia, brownfields drilling delineated
a very high-grade extension to the Lode 1 deposit. Meanwhile
one kilometer south of Lode 1 at the Janob target, first pass
exploration drilling discovered a new zone of ore grade copper
mineralization, highlighting the potential along the multiple
prospective and largely untested paleosurfaces on the project.
Near the end of the year Barrick, in partnership with Ma’aden,
was awarded the sought after Umm Ad Damar project in a
competitive bid process after which the portfolio was further
expanded with the signing of the Jabal Sayid South exploration
agreement, extending our exploration footprint in the highly
prospective area around the Jabal Sayid mine.
Africa and Middle East
On the Bambadji joint venture in Senegal, multiple zones of
mineralization have been discovered on numerous structures
across the project, however the search for a large deposit with
the potential to be a standalone operation continues. As a
majority of the known economic mineralization in the district
occurs at depth, deeper drilling is being planned on the largest
and most anomalous structures. Target delineation programs
have started on the recently granted Bambadji South permit,
where initial surface observations have highlighted strongly
altered and sulfidized rocks that correlate with high tenor soil
geochemistry anomalies. These targets will be prioritized
against other opportunities for testing in 2023. On the Dalema
joint venture, early-stage exploration activities commenced
with the flying of an airborne geophysical survey and auger
drilling in the northern part of the permit which identified two
priority targets.
At Loulo-Gounkoto in Mali, exploration work is also targeting
mineralization at depth on key under-explored structures,
several of which host existing deposits, as well as defining
and testing high-impact extensions around our orebodies.
An example is Gara West where strong mineralization was
intersected beneath the open pit, opening up a significant
new search space at Loulo. The Domain Boundary structure
at Gounkoto which hosts concealed, high-grade zones
of mineralization, will be a key focus for follow up in 2023
including a 3D geophysical survey to more effectively target
the blind potential.
The priority at Tongon continues to be progressing satellite
targets with the potential to extend the life of mine. This
continued successfully through the year with the further
definition of the recently discovered Seydou North deposit and
the identification of several other zones of mineralization along
the Stabilo trend, with the potential to develop into significant
satellite orebodies within 15 kilometers of Tongon.
At Kibali in the DRC, exploration programs have identified the
potential for large scale extensions to mineralization at multiple
deposits along the KZ trend including the KCD orebody itself.
This trend continues to exhibit extensive discovery potential
evidenced by the Oere target near Kalimva where recent
high-grade drill intersections beneath weak near surface
mineralization demonstrates the lack of maturity along large
parts of the trend where deeper drilling has focused largely on
the main deposits.
In Tanzania, early work on our expanding regional portfolio,
as well as around the North Mara and Bulyanhulu operations,
returned encouraging results. At North Mara, drilling beneath
post-mineral cover intersected Gokona-type alteration and
mineralization two kilometers away from the Gokona deposit
indicating a separate, similar hydrothermal center which
is an exciting development. At Bulyanhulu, the exploration
agreement on the surrounding permits was concluded with
early results indicating potential for mineralization beneath
underexplored areas of cover within haulage distance of the
plant.
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43
SUSTAINABILITY STATEMENT
Manage
environmental
impacts
Create
economic
benefits
Our
sustainability
strategy
Protect
health &
safety
Respect
human rights
Governance of sustainability
and scorecard
Our group-level sustainability strategy
four
interconnected core pillars: (1) respecting human rights;
(2) protecting the health and safety of its people and local
communities; (3) sharing the benefits of its operations; and (4)
managing its impacts on the environment.
rests on
This approach is codified in our Sustainable Development Policy
and a full suite of sustainability policies, which are available on
our website.
We have a bottom-up governance structure that empowers each
mine to be responsible for managing sustainability, while also providing
oversight and expert guidance at the group-level. Our Environmental
& Social Oversight Committee – our most senior body dedicated to
sustainability – connects site-level ownership of sustainability with
our Board, alongside regular interaction from the Group Sustainability
Executive and regional sustainability leads. We also tie incentive
compensation for our President and CEO, members of the Executive
Committee and employees to the achievement of company-wide
sustainability targets set out in our Sustainability Scorecard.
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Annual Report 2022 | Barrick Gold Corporation
Keeping score
In early 2020, we developed our industry-first Sustainability
Scorecard as our main tool to define good practice and
benchmark ourselves against our peers. It includes key
performance indicators aligned to the four pillars of our
sustainability strategy and is informed by the expectations
of the UN Global Compact and relevant frameworks such as
the World Gold Council’s (WGC) Responsible Gold Mining
Principles (RGMPs) and the International Council for Mining
and Metals (ICMM) Mining Principles.
The abridged scorecard is published on page 45. The score is
expressed as a ranking for each metric in quintiles to produce
a rank of 1 (top) – 5 (bottom). The score for each indicator is
then summed to produce a total score against which we grade
ourselves using an A to E banding (where A represents top
performance and E represents bottom performance). Barrick
received a B grade in 2022.
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SUSTAINABILITY STATEMENT (CONTINUED)
2021
Quintile
2022
Quintile
Trend
SUSTAINABILITY SCORECARD
Aspect
Key Performance Indicator
Total Recordable Injury Frequency Rate (TRIFR)1
Safety
Zero Fatalities (New)3,4
5
N/A
1
N/A
2
1
2
2
4
1
4
1
Percentage of sites that maintained certification to ISO 45001 (2022) (Updated)3
Percentage of safety leadership interactions completed (New)3,4
Percentage of annual Community Development Committees commitments met2
Social and
economic
development
Percentage of workforce who are host nationals
Percentage of senior management who are host nationals
Percentage of economic value that stays in country
Proportion of grievances resolved within 30 days2
Human rights
Percentage of security personnel receiving training on human rights
Corporate human rights benchmark score5
Independent human rights impact assessments with zero significant findings at high-risk sites2,4
Upgrade controversy listed by one of the ESG Rating Agencies (New)3,4
N/A
Number of significant environmental incidents
Tonne CO2e per tonne of ore processed
Progress against absolute emissions target2
Water use efficiency (recycled & reused)
Percentage of completion against Biodiversity Action Plan Commitments (2022) (New)2,3
Independent tailings reviews conducted2
Percentage of ISO 14001 certified sites maintained4
Global Industry Standard on Tailings Management progress2
Proportion of operational sites achieving annual concurrent reclamation targets2
Progress against RGMP+ implementation2,6
Percentage of employees receiving Code of Conduct training2
Percentage of supply partners trained on Code of Conduct at time of on-boarding2
30% female Board composition (New)3,4
Environment
(including
Climate Change)
Governance
Overall Score7
1
3
1
1
1
1
1
2
2
2
1
1
N/A
40 (B)
2
5
1
2
3
1
2
2
4
1
4
1
1
1
3
1
1
1
1
1
2
3
1
1
1
1
47 (B)
N/A
N/A
N/A
N/A
1
5
6
7
For 2021, actual score assessed at the third quintile reflecting Barrick’s year-on-year improvement; however, this was automatically downgraded to the bottom quintile in
consideration of the fatalities recorded for the year.
Internal metrics.
2
3 Metrics that were changed in 2022 to promote constant improvement.
4
N/A due to changes in the metrics that are not comparable year-on-year.
In comparison to the 56 extractive companies assessed against the Corporate Human Rights Benchmark’s methodology, Barrick is ranked in the top 25% in the
extractives industry.
The ICMM and the WGC introduced new frameworks in 2019 – the Mining Principles and the Responsible Gold Mining Principles (RGMP), respectively. Barrick’s approach
to conformance with these two frameworks has been to use the equivalency tables to evaluate whichever requirement is more stringent for each aspect to dovetail the two
frameworks into a single framework, which we refer to as RGMP+.
For 2022, the grading key was updated to reflect a total of 26 measures assessed by the Sustainability Scorecard resulting in a maximum of 130 quintiles, compared to a
total of 22 measures in 2021 resulting in a maximum of 110 quintiles. The total scores and corresponding grades are therefore not directly comparable year-over-year.
A developing business
“Sustainable development and successful mines
are two sides of the same coin to Barrick. We
strive to be a good corporate citizen and a
genuine partner for our host communities in
locally led development, and to build resilience
to global challenges.”
Thomas Wilson, Sustainability Lead Africa and Middle East
The success of any Barrick mine rests on the partnerships we
forge with the communities that we are a part of. We seek to
earn their support every day through our investment in community
development projects, by buying and employing locally, and by
establishing Community Development Committees (CDCs) that
enable local communities to drive their own development.
In 2022, we invested more than $35 million in community
development projects around our mines. These included projects
such as the building of clean energy infrastructure in both the DRC
and Mali, as well as support to local entrepreneurs.
At all operational mines, these project budgets were allocated
through the CDCs.
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Barrick Gold Corporation | Annual Report 2022
45
Also during 2022, we undertook resettlements and land
acquisition projects at our Kibali, Pueblo Viejo and North Mara
mines. Our approach is guided by our Social Performance
Policy and conducted in compliance with applicable laws and
regulations and international best practice.
In particular, we progressed the resettlement of the Kalimva-
Ikamva community at Kibali in 2022. At Kibali, a total of 659
households were resettled during the year, with affected
community members given the option to either move into a
house we build for them, or receive an agreed-to sum and build
their own house.
More details on our policies, approach and performance on
resettlement initiatives is available in our 2021 Sustainability Report.
FIGURE 1: ECONOMIC VALUE STATEMENT
2022
2021
2020
Total economic value
$15.2b
$12.4b
$12.1b
Proportion of employees that
are host country nationals
Number of senior
management that are host
country nationals
Procurement to local and/or
national vendors
96%
96%
97%
78%
78%
80%
$6b
$5.5b
$4.5b
Tito’s business has risen rapidly. He now uses 50 times the
amount of ingredients and instead of a sales window, he
now has a proud shopfront to sell from. But for Tito, there
is further to go. More than just growing economically, he will
now look towards expanding and become a leading regional
producer of traditional baked goods.
SUSTAINABILITY STATEMENT (CONTINUED)
We also support our host countries and communities by paying
our fair share of tax; by prioritizing local hiring (96% of employees
were host country nationals in 2022); and by procuring from local
businesses when we can.
During 2022, 80% of our total procurement spend was from
local and host country suppliers. We also work to support local
entrepreneurs with mentorship programs, skills training, or by
providing loans to cover the cost of materials needed and help
them achieve scale or meet standards.
As shown in Figure 1, we distributed over $15.2 billion in 2022 to
our workforce, suppliers, host communities and beyond.
We also recognize our responsibility to leave a thriving economic
and positive environmental legacy after our mines close. In
2022, we progressed the decommissioning of mine infrastructure
at Buzwagi in Tanzania. This included the advancement of a
Special Economic Zone aimed at creating 3,000 jobs annually and
delivering additional funds to the Tanzanian government.
Managing resettlement and grievances
An important part of our engagement with communities is our fully
accessible and accountable process to the formal raising and
resolution of grievances. In 2022, we received 422 grievances
across all operating regions and resolved 385.
A BAKER’S ‘MARK’ IN SAN JUAN
In the shadow of the Andes where our Veladero mine is located,
and just six kilometres from Chile, many people in Huasco in
San Juan province rely on small and subsistence farming.
That group used to include community minded baker Tito
Heredia, but with help from the mine’s Business Incubator
Program, he now oversees the thriving San Cayetano
bakery, employing as many as 16 people, with queues out
the door, and products that sell out before lunchtime.
Tito began to make bread several years ago with his mother,
baking it by hand and selling it from a window in the family
home. With the focus on quality and freshness, and making
sure that the aroma permeated onto the street, demand for
the bread rapidly grew.
Despite this success, Tito’s ability to grow the business
was hampered by the lack of equipment – until he applied
and was accepted to the Veladero incubator program
for funding to buy a mixer, kneading machine and small
commercial oven. Acceptance to the program has also
provided monthly financial advice from an accountant and
additional business training, support, and mentoring.
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SUSTAINABILITY STATEMENT (CONTINUED)
“This land is very fertile and has a lot of potential.
In the first three months, 40 tonnes of tomatoes
were produced, but
it has the potential to
more than double that yield with a few small
interventions. With time and application, we can
become national and regional suppliers.”
Elard Tarimo, expert agronomist at TAHA
SOWING THE SEEDS OF
AMBITION AT NORTH MARA
In September 2022, we started the Matongo Agricultural
project, a program aimed at providing local youth based near
our North Mara mine in Tanzania with work and livelihood
opportunities.
The project is training 100 young people, including former
mine intruders, to develop advanced agronomy skills and
methods to bring high-quality, seasonal produce (from carrots
to cauliflowers) to market.
To do this, the mine team identified 10 acres of land for
cultivation, provided pesticides, seedlings and irrigation
equipment, and brought in expert agronomists such as Elard
Tarimo from the Tanzanian Horticultural Association (TAHA) to
provide training and expert advice.
Further to facilitating training and providing initial inputs for
the farm, we have also provided the young farmers with their
first market. We introduced them to our mine caterers, AKO,
to help facilitate a supply agreement and are now working
with them to target new potential customers such as the
hotels near the city of Mwanza that are enroute to the mine.
Health and safety
Mines are a hazardous place to work, and we apply robust safety
measures and control mechanisms as our priority is to enable
our workforce to return home safe and healthy each day. We
have an ambition to create a zero-harm culture.
All our operational sites are certified to ISO 45001 standards
and our approach to health and safety is set out in a series of
standards, policy guidelines, operating procedures and systems
that are regularly reviewed and assured. We also conduct
regular risk assessments, internal and external audits as well
as inspections. In 2022, our group TRIFR (total recordable
injury frequency rate) and LTIFR (lost time injury frequency rate)
improved by more than 11% and 23%, respectively, year on year.
Despite this improvement, our safety performance in 2022 was
badly marred by five tragic fatalities. These occurred at our
Cortez, Kibali, Loulo-Gounkoto, North Mara and Pueblo Viejo
mines. Each loss of life is felt across all levels of the company.
Full investigations were carried out for each incident in an effort
to understand the root cause, with corrective actions widely
implemented and shared to prevent recurrence. We also
recognize that each fatality has a human impact and provide
support to the victims’ families, their co-workers and the
extended teams on the ground.
As our safety performance did not meet the standards we expect,
we held a group level workshop with safety representatives from
each region and other relevant parties in early 2023 to review our
approach to safety.
As a result, the roadmap on page 48 has been developed to help
not just reverse, but stop, the concerning trend of workplace
fatalities. This initiative is directly overseen by our Executive
Committee. It includes a commitment to further training for
all, a greater focus on leading indicators and raising awareness
of our ‘stop work responsibility’ to empower individuals to be
accountable for the safety of themselves and their co-workers.
JOURNEY TO ZERO
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Barrick Gold Corporation | Annual Report 2022
47
SUSTAINABILITY STATEMENT (CONTINUED)
FIGURE 2: OUR SAFETY ROADMAP TO ZERO
Honest Reflection
Connection
Engagement
Ownership
One Team One Mission
Honest
reflection
Near miss
program
Fatal risk
Safety
interactions
Planned task
observation
Baseline risk
assessment
World
benchmark
Continuous
improvement
Responsibility
to stop unsafe
work
Life saving
rules
Risk tools
FLRA, TRA,
FRA
Supervisor
training
Global safety
spotlights
3rd party
review safety
assessment
Performance
review audit
An inclusive culture
We believe we need a diverse workforce to gain the wide
range of experience and problem-solving skills necessary
to run a world-class mining company, and we engage in
several initiatives to attract the best people from a variety of
backgrounds and to encourage more women to enter the
mining sector.
At the end of 2022, 33% of the Board of Directors were female,
exceeding our target of 30%. On the ground, Pueblo Viejo in
the Dominican Republic has led the way and 50% of new hires
in 2022, as well as 22% of the workforce, are women.
Respecting human rights and
harnessing diversity
We understand and accept our responsibility to respect human
rights. We have zero tolerance for violations of human rights
committed by employees, affiliates, or any third parties acting
on behalf or related to any of our operations.
Our commitment is codified in our standalone Human Rights
Policy and informed by the UN Guiding Principles on Business
and Human Rights (UNGPs), the Voluntary Principles on
Security and Human Rights (VPs) and the OECD Guidelines
for Multinational Enterprises. Our Human Rights Policy also
sets out our commitment to recognizing the unique rights and
social, economic and cultural heritage of Indigenous Peoples.
On the ground, we monitor human rights incidents and report
them. No human rights related grievances or incidents were
reported during 2022. The benefits of our transparent and
accountable approach are clear in areas such as North Mara
in Tanzania.
We also conduct human rights assessments at all our mines on
an exposure-to-risk basis over a two to three-year rolling cycle.
In 2022, we undertook independent human rights assessments
at three of our sites: Lumwana (Zambia); Veladero (Argentina);
and Tongon (Côte d’Ivoire).
All employees and relevant suppliers receive training on our
human rights expectations and additional specialist human
rights training is provided to highly exposed workers such as
security personnel.
Right: Successful human rights training was completed
at Tongon mine in Côte d’Ivoire during 2022.
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SUSTAINABILITY STATEMENT (CONTINUED)
NORTH MARA: ONGOING PROGRESS TOWARDS A SAFER
AND MORE SECURE MINE AND COMMUNITY
North Mara is an area historically beset with social issues
including significant in-migration to the area, civil unrest due to
poverty and a limited ratio of law enforcement to population.
There have also been international allegations of human rights
violations against the mine, linked to the Tanzanian Police Force.
Since we acquired the minority stake that Barrick did not
already own and took operational control of North Mara in
2019, we have worked internally and in partnership with local
community leaders to address legacy issues and rebuild trust,
maintain our social licence, and to enable local communities
to live and work free from harm and to reduce mine intrusions.
This has been aided by the work of local NGOs, who are
working with communities to raise human rights awareness
and clarify the reason for the police presence, making it clear
that the mine does not employ the police and that they work
under the jurisdiction of the local authorities.
Engaging with local stakeholders
In March 2022, a UK-based NGO published a report alleging
human rights violations by the Tanzanian Police Force at North
Mara. Although we disagree with many of the statements in
the report and believe they are factually inaccurate, erroneous
and misleading, we take all allegations extremely seriously and
have a dedicated grievance mechanism in place to ensure all
claims are investigated thoroughly and fairly.
In January 2023, we welcomed the NGO team to the minesite.
The intention of the site visit was to show the initiatives we
have implemented to improve the lives and livelihoods of our
surrounding communities since Barrick assumed operational
control in 2019, providing a contextual understanding of
the operating environment at North Mara and hold tripartite
meetings with key stakeholders. The village leadership did
not corroborate any of the allegations made by the NGO.
North Mara continues to work with in-country civil society,
government, and the local communities to build a better future.
Environmental stewardship
“We are committed to managing our impacts on
the natural environment, both today and with future
generations in mind. We take a pragmatic approach
and recognize that attempts to tackle climate change,
biodiversity loss or water use must go hand-in-hand
with efforts to foster thriving local economies and
positive community relations.”
Grant Beringer, Group Sustainability Executive
Mining impacts the physical environment including the land,
air, water and other important natural resources that we rely
on and share with our stakeholders. It is fundamental for any
modern mining company to minimize and manage its negative
environmental impacts and to take opportunities to support
conservation.
All our operational mines are certified to ISO 14001:2015 for
their environmental management systems, and for the fourth
consecutive year, we recorded zero ‘Class 1’ (high significance)
environmental incidents. Alongside this, we recorded only two
‘Class 2’ (medium significance) environmental incidents, a record
low.
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Barrick Gold Corporation | Annual Report 2022
49
SUSTAINABILITY STATEMENT (CONTINUED)
Climate risk and resilience
We have a long-term aim to achieve net-zero emissions at our
operations by 2050, with an ambitious target, built on practicable
measures, to reduce Scope 1 and 2 emissions by at least 30%
by 2030 (from a 2018 baseline), while maintaining a steady
production profile. All our sites have ‘Climate Champions’ and
are working to reduce our carbon footprint, adopt green energy
sources and production systems, and build climate resilience
for our host communities and countries. We also attended the
global 2022 COP27 summit in Egypt, as part of a delegation
with the ICMM to observe and participate in debate on climate
resilience and action solutions.
In 2022, we were encouraged to see an approximately 6% reduction
in our emissions year-on-year, and an 11% decline compared to our
2018 baseline. Some of the factors behind this are the investments
in solar power in the US and Mali, and our hydropower stations
in DRC. Veladero in Argentina also completed a $54 million (on
a 100% basis) power line to connect it to the Chilean electricity
grid which is expected to reduce annual emissions at the site by
100,000 tonnes of CO2-e starting early in 2023.
Despite progress, it is important to note that reducing our
emissions is not a straight downward projection, and short-
term volatility is expected along the way, for example caused by
construction or the expansion of our operations.
In 2022, we continued to progress our measurement and
engagement roadmap of Scope 3 (value chain) emissions. We
continue to evolve the extensive Scope 3 work undertaken since
2021, based on improving the completeness and accuracy of
specific emission factors, as we work towards Scope 3 target
setting in 2023.
The urgency with which the world must transition to a low carbon
economy is also an opportunity. We know that gold and copper
mining has a critical role in delivering the resources needed for
green technologies and we are actively working to seize this
opportunity.
Full details of our approach to climate change, including
disclosures in line with the requirements of the Task Force for
Climate-related Financial Disclosures (TCFD), is available on our
website.
Water stewardship
Water is vital for production, and a fundamental human right. We
are extremely careful to manage local waterbodies in order to
minimize potential negative impact on nearby communities.
Each mine has its own site-specific water management plan with
a strategy based on four pillars:
■ Conserve and protect: high quality water resources wherever
we operate.
■ Consider other users: through basin-wide water balances
that consider impacts from climate change as well as the
current and future demands of our operations and other users.
■ Site wide balances, monitoring and management plans:
to track and ensure we don’t exceed our permitted thresholds
for abstraction or discharge quality.
■ Honest and open disclosure: Reporting against the
market leading ICMM Water reporting framework with
participatory monitoring programs for community members
across many sites.
Each site’s water management plan considers the different
water sources available, local climate conditions and the
needs of local users and of the mine. In regions identified as
vulnerable to water stress, we take particular care to monitor
the supply of freshwater for local communities and ecosystem
maintenance, aiming to use low-quality water and to recycle
and reuse as much water from our processes as possible. In
2022, we reused or recycled 83% of all the water we use,
which was above our target of 80%.
Our commitment to responsible water use is set out in
our Environmental Policy and further details of our water
management can be found in our 2021 Sustainability Report.
USING ENGAGEMENT AND
EXPERTISE TO REBUILD
TRUST AT VELADERO
In the two years leading up to 2017, our Veladero site in
Argentina recorded incidents at the Valley Leach Facility, one of
which was an out of containment event. Although independent
studies were completed, including by the United Nations
Environment Programme (UNEP) and United Nations Office
for Project Services (UNOP), that determined there was no
environmental damage or risk to human health, it was critical to
implement measures to prevent future incidents, and provide
transparent communications with our communities to rebuild
trust. That’s why strengthening our water management at the
site has been a priority.
We have a robust water management system in place that
tests approximately 500 samples per month from a wide array
of boreholes and water sources. The monitoring area stretches
over 200km downstream.
To drive transparency, the Veladero team invites communities
to participate in sample-taking, makes all results public and
puts all relevant operating data on a live online feed so that
regulators, local communities and others can monitor the
system.
The water quality for local communities is historically poor
due to the nature of the High Andes geology. Over the past
years, the mine, through the CDC, has committed to rebuilding
several water treatment stations in the area to improve this
water quality.
Facing page: Testing the water quality from a wide array of
water sources.
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Barrick Gold Corporation | Annual Report 2022
51
SUSTAINABILITY STATEMENT (CONTINUED)
Responsible management of
waste and tailings
Dealing responsibly with the waste our operations produce –
including tailings, waste rock, and non-processing waste – is
vital to the health of local environments, local communities and a
priority for our business.
We put safety at the center of our approach to tailings
management and have a Tailings and Heap Leach Management
Standard to ensure our tailings storage facilities (TSF) are
carefully and consistently monitored and maintained in line with
industry best practice.
We are also working to align our approach with the new Global
Industry Standard on Tailings Management (GISTM), having
contributed to its development. We are on track to align with all
‘Very High’ and ‘Extreme’ classified facilities by the August 2023
disclosure commitment, pending the conclusion of community
consultations. We have a dedicated Director of Reclamation and
Closure with direct responsibility for this process, reporting to our
Group Sustainability Executive.
In 2022, we also conducted detailed independent reviews of the
TSFs at nine sites (Kibali, Loulo, Tongon, North Mara, Phoenix,
Nickel Plate, Grizzly Gulch, Golden Sunlight and Pueblo Viejo El
Llagal) and conducted follow-up reviews including site visits at
five TSFs (Bulyanhulu, Carlin – Goldstrike, Carlin – Gold Quarry,
Cortez and Pueblo Viejo Naranjo). We also completed measures
to further buttress facilities at our closed sites including Nickel
Plate (Canada) and Mercur (US).
True to the spirit of the GISTM, we are also evolving our tailings
management to include sustainability in the earliest design stage.
In 2022, we became one of the first mining companies in the
world to implement the GISTM for a greenfields site. This robust
process uses environmental and social considerations to inform
the most appropriate location for a new TSF.
Full details of our approach to waste management, including our
policies and processes in relation to hazardous materials such as
mercury, are available in the 2021 Sustainability Report.
Protecting nature and
biodiversity
The creation and operation of a mine has an undeniable impact
on local biodiversity. We are committed to managing and
minimizing this, and at every opportunity enhancing biodiversity.
Conserving and expanding the natural environment around our
sites and beyond is fundamental to protecting the air, water
and soil that our operations and local communities depend on,
is intimately connected to tackling climate change, and has an
important role to play in economic development.
Our commitments to biodiversity management are set out in
our Biodiversity Policy and 100% of our operational sites have
Biodiversity Action Plans (BAPs) in place. These detail the flora,
fauna and habitats on and around the site and outline the strategy
we will follow to achieve a net neutral biodiversity impact.
In 2022, we developed a new internal biodiversity standard for
Barrick, working with external experts to define measurable
conservation actions (MCAs) that not only achieve net neutrality
but which can enhance key biodiversity features in a habitat and
achieve conservation gains.
Just one example is our commitment to the Garamba National
Park, a UNESCO World Heritage Site in the DRC, where this year,
we will realize a project to reintroduce white rhino. Garamba used
to be home to a population of northern white rhino which are
now extinct in the wild. Barrick is the sole sponsor of a project to
reintroduce the southern white rhino to Garamba National Park,
helping to conserve an endangered animal and one which plays
an important role in the maintenance of the natural ecosystem
and, in the medium term, promote ecotourism to benefit the local
community.
Full details are available in our 2021 Sustainability Report.
Below: The TSF at North Mara. Tanzanian authorities lifted
environmental restrictions in September 2019, following
Barrick’s intervention.
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ENDNOTES
i
Please see page 141 of this annual report for corresponding endnotes.
ii
Key assumptions
Gold Price ($/oz)
Copper Price ($/lb)
Oil Price (WTI) ($/barrel)
AUD Exchange Rate (AUD:USD)
ARS Exchange Rate (USD:ARS)
CAD Exchange Rate (USD:CAD)
CLP Exchange Rate (USD:CLP)
EUR Exchange Rate (EUR:USD)
2023
1,650
3.50
90
0.75
170
1.30
900
1.20
2024
2025+
1,650
3.50
70
0.75
170
1.30
900
1.20
1,650
3.50
70
0.75
170
1.30
900
1.20
This five-year indicative outlook is based on our current operating asset
portfolio, sustaining projects in progress and exploration/mineral resource
management initiatives in execution. This outlook is based on our current
reserves and resources as disclosed in our annual report and assumes
that we will continue to be able to convert resources into reserves. Our
gold and copper reserve price assumptions are based on $1,300/oz and
$3.00/lb, respectively.
•
Additional asset optimization, further exploration growth, new project
initiatives and divestitures are not included. For the group gold and copper
segments, and where applicable for a specific region, this indicative
outlook is subject to change and assumes the following:
• New open pit production permitted and commencing at Hemlo in the
second half of 2025, allowing three years for permitting and two years
for pre-stripping prior to first ore production in 2027.
Production from the proposed Pueblo Viejo plant expansion and
tailings storage facility project starting in 2023.
Tongon will enter care and maintenance by 2026.
•
This five-year indicative outlook excludes:
•
•
Production from Fourmile.
Production from long-term greenfield optionality from Donlin, Pascua-
Lama, Norte Abierto or Alturas.
Production from Porgera, Reko Diq and the Lumwana Super Pit
Barrick’s ten-year production profile is subject to change and is based
on the same assumptions as the current five-year outlook detailed above,
except that the subsequent five years of the ten-year outlook assumes
attributable production from Fourmile as well as exploration and mineral
resource management projects in execution at Nevada Gold Mines.
•
Barrick’s ten-year production profile in this annual report also
assumes the re-start of Porgera, as well as an indicative gold and copper
production profile for Reko Diq and an indicative copper production profile
for the Lumwana Super Pit expansion, both of which are conceptual in
nature.
iii
Change in proven and probable gold reserves of 10Moz since 2018
represents the following: an increase of 13.4Moz in proven and probable
gold reserves from December 31, 2018 to December 31, 2019, as a
result of the Merger between Barrick and Randgold Resources effective
January 1, 2019, the acquisition of all of the outstanding shares of Acacia
Mining plc not already owned by Barrick effective September 17, 2019,
and the divestiture of Barrick’s interest in Kalgoorlie Consolidated Gold
Mines effective November 28, 2019; a decrease of 2.2Moz in proven and
probable gold reserves from December 31, 2019 to December 31, 2020,
as a result of the divestiture of Barrick’s Massawa gold project effective
March 4, 2020; and a decrease of 0.90Moz in proven and probable gold
reserves from December 31, 2020 to December 31, 2021, as a result of
the change in Barrick’s equity interest in Porgera from 47.5% to 24.5%
and the net impact of the asset exchange of Lone Tree to i-80 Gold for the
remaining 40% of South Arturo that NGM did not already own.
Estimated in accordance with National Instrument 43-101 - Standards
of Disclosure for Mineral Projects as required by Canadian securities
regulatory authorities. Estimates are as of December 31, 2020, unless
otherwise noted. Proven reserves of 280 million tonnes grading 2.37g/t,
representing 21 million ounces of gold, and 350 million tonnes grading
0.39%, representing 3,000 million pounds of copper. Probable reserves
of 990 million tonnes grading 1.46g/t, representing 47 million ounces of
gold, and 1,100 million tonnes grading 0.39%, representing 9,700 million
pounds of copper. Measured resources of 530 million tonnes grading
2.11g/t, representing 36 million ounces of gold, and 600 million tonnes
grading 0.36%, representing 4,800 million pounds of copper. Indicated
resources of 2,800 million tonnes grading 1.41g/t, representing 130 million
ounces of gold, and 2,500 million tonnes grading 0.36%, representing
20,000 million pounds of copper. Inferred resources of 980 million tonnes
grading 1.4g/t, representing 43 million ounces of gold, and 440 million
tonnes grading 0.2%, representing 2,200 million pounds of copper.
Mineral resources are reported inclusive of mineral reserves. Complete
mineral reserve and mineral resource data for all mines and projects
referenced, including tonnes, grades, and ounces, can be found on pages
136-143 of Barrick’s Fourth Quarter and Year-End 2020 Report.
Estimated in accordance with National Instrument 43-101 as
required by Canadian securities regulatory authorities. Estimates are as
of December 31, 2019, unless otherwise noted. Proven reserves of 280
million tonnes grading 2.42g/t, representing 22 million ounces of gold;
420 million tonnes grading 0.4%, representing 3,700 million pounds of
copper; and 150 million tonnes grading 4.31g/t, representing 21 million
ounces of silver. Probable reserves of 1,000 million tonnes grading
1.48g/t, representing 49 million ounces of gold; 1,200 million tonnes
grading 0.38%, representing 9,800 million pounds of copper; and 750
million tonnes grading 5.18g/t, representing 120 million ounces of silver.
Measured resources of 530 million tonnes grading 2.21g/t, representing
37 million ounces of gold; 660 million tonnes grading 0.38%, representing
5,500 million pounds of copper; and 350 million tonnes grading 12.52g/t,
representing 140 million ounces of silver. Indicated resources of 2,800
million tonnes grading 1.43g/t, representing 130 million ounces of gold;
2,400 million tonnes grading 0.38%, representing 21,000 million pounds
of copper; and 2,000 million tonnes grading 13.44g/t, representing 870
million ounces of silver. Inferred resources of 940 million tonnes grading
1.3g/t, representing 39 million ounces of gold; 430 million tonnes grading
0.2%, representing 2,200 million pounds of copper; and 460 million
tonnes grading 3.20g/t, representing 47 million ounces of silver. Complete
mineral reserve and resource data, including tonnes, grades, and ounces,
as well as the assumptions on which the mineral reserves for Barrick
are reported, are set out in Barrick’s Q4 2019 Report issued on
February 12, 2020.
Barrick reserves estimated in accordance with National Instrument
43-101 as required by Canadian securities regulatory authorities.
Estimates are as of December 31, 2018, unless otherwise noted. Proven
reserves of 344.6 million tonnes grading 2.15g/t, representing 23.9 million
ounces of gold and probable reserves of 0.9 billion tonnes grading 1.33g/t,
representing 38.4 million ounces of gold. Randgold reserves estimated
in accordance with the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the "JORC Code"). The
JORC Code is an "acceptable foreign code" for purposes of National
Instrument 43-101 and, as a result, Barrick is entitled to include Randgold
ore reserves and mineral resources disclosure in this annual report. Ore
reserves and mineral resources reported pursuant to the JORC Code are
functionally equivalent to CIM reporting standards. In addition, Barrick
has reconciled the reported Randgold ore reserves to the CIM definition
of “mineral reserves” and there are no material differences. Randgold’s
gold ore reserves as of December 31, 2018 comprising total proved gold
ore reserves of 48 million tonnes, at a grade of 3.35 g/tonne, containing
3.3 million attributable ounces and total probable gold ore reserves of
104 million tonnes, at a grade of 4.30 g/tonne, containing 9.6 million
attributable ounces, for aggregate proved and probable total gold ore
reserves of 152 million tonnes, at a grade of 4.03 g/tonne, containing 13
million attributable ounces. Complete 2018 mineral reserve and mineral
resource data for all mines and projects referenced in this report, including
tonnes, grades, and ounces, can be found on pages 35-46 of Barrick’s
Annual Information Form/Form 40-F for the year ended December 31,
2018 on file with Canadian provincial securities regulatory authorities and
the U.S. Securities and Exchange Commission.
iv
Class 2 - Medium Significance is defined as an incident that has the
potential to cause negative impact on human health or the environment
but is reasonably anticipated to result in only localized and short-term
environmental or community impact requiring minor remediation.
v
Refer to the Technical Report on the Pueblo Viejo Mine, Dominican
Republic, dated March 17, 2023 and filed on SEDAR at www.sedar.com
and EDGAR at www.sec.gov on March 17, 2023.
Barrick Gold Corporation | Annual Report 2022
53
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FINANCIAL REPORT
FOR 2022
CONTENTS
Management’s Discussion and Analysis
Mineral Reserves and Resources
Financial Statements
Notes to Financial Statements
Shareholder Information
55
155
168
173
216
54
Annual Report 2022 | Barrick Gold Corporation MANAGEMENT’S DISCUSSION
AND ANALYSIS (“MD&A”)
Management’s Discussion and Analysis (“MD&A”) is intended to
help the reader understand Barrick Gold Corporation (“Barrick”,
“we”, “our”, the “Company” or the “Group”), our operations, financial
performance and the present and future business environment. This
MD&A, which has been prepared as of February 14, 2023, should be
read in conjunction with our audited consolidated financial statements
(“Financial Statements”) for the year ended December 31, 2022.
Unless otherwise indicated, all amounts are presented in U.S. dollars.
For the purposes of preparing our MD&A, we consider the
materiality of information. Information is considered material if: (i) such
information results in, or would reasonably be expected to result
in, a significant change in the market price or value of our shares;
(ii) there is a substantial likelihood that a reasonable investor would
consider it important in making an investment decision; or (iii) it would
significantly alter the total mix of information available to investors.
We evaluate materiality with reference to all relevant circumstances,
including potential market sensitivity.
Continuous disclosure materials, including our most recent
Form 40-F/Annual
Information Form, annual MD&A, audited
consolidated financial statements, and Notice of Annual Meeting of
Shareholders and Proxy Circular will be available on our website at
www.barrick.com, on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov. For an explanation of terminology unique to the mining
industry, readers should refer to the glossary on page 154.
ABBREVIATIONS
BAP
BLM
BNL
Boroo
CDCs
CHUG
Biodiversity Action Plans
Bureau of Land Management
Barrick Niugini Limited
Boroo Pte Ltd.
Community Development Committees
Cortez Hills Underground
Commencement
Agreement
Detailed Porgera Project
Commencement Agreement
E&S Committee
E&E
ENRE
ESG
ESG &
Nominating
Committee
ESIA
FEIS
GHG
GISTM
GoT
i-80 Gold
ICMM
IFRS
IRC
IRP
Environmental and Social
Oversight Committee
Exploration and Evaluation
Ente Nacional Regulador de Electricidad,
Argentina’s national power regulator
Environmental, Social and Governance
Environmental, Social, Governance
& Nominating Committee
Environmental and Social Impact Assessment
Final Environmental Impact Statement
Greenhouse Gas
Global Industry Standard for Tailings
Management
Government of Tanzania
i-80 Gold Corp.
International Council on Mining and Metals
International Financial Reporting Standards
Internal Revenue Commission
Incident Review Process
IRR
KCD
Internal Rate of Return
Karagba, Chauffeur and Durba
Kumul Minerals
Kumul Minerals Holdings Limited
LBMA
LIBOR
LTI
LTIFR
MRE
NOA
NGM
OECD
PNG
London Bullion Gold Association
London Interbank Offered Rate
Lost Time Injury
Lost Time Injury Frequency Rate
Mineral Resources Enga Limited
Notice of Availability
Nevada Gold Mines
Organisation for Economic
Co-operation and Development
Papua New Guinea
Randgold
Randgold Resources
RC
ROD
Roundtable
SDG
SML
TCFD
TRIFR
TSF
TW
WACC
WTI
Reverse Circulation
Record of Decision
Environmental, Social and
Governance Raters Roundtable
Sustainable Development Goals
Special Mining Lease
Task Force for Climate-related
Financial Disclosures
Total Recordable Injury Frequency Rate
Tailings Storage Facilities
True Width
Weighted Average Cost of Capital
West Texas Intermediate
55
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS CAUTIONARY STATEMENT ON FORWARD-
LOOKING INFORMATION
Certain information contained or incorporated by reference in this
MD&A, including any information as to our strategy, projects, 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 “believe”,
“expect”, “anticipated”, “vision”, “aim”, “strategy”, “target”, “plan”,
“opportunities”, “guidance”, “forecast”, “outlook”, “objective”,
“intend”, “project”, “pursue”, “goal”, “continue”, “committed”,
“budget”, “estimate”, “potential”, “prospective”, “future”, “focus”,
“ongoing”, “following”, “subject to”, “scheduled”, “may”, “will”,
“can”, “could”, “would”, “should” and similar expressions identify
forward-looking statements.
In particular, this MD&A contains
forward-looking statements including, without limitation, with respect
to: Barrick’s forward-looking production guidance; estimates of
future cost of sales per ounce for gold and per pound for copper,
total cash costs per ounce and C1 cash costs per pound, and all-
in-sustaining costs per ounce/pound; cash flow forecasts; projected
capital, operating and exploration expenditures; the share buyback
program and performance dividend policy, including the criteria for
dividend payments; mine life and production rates; projected capital
estimates and anticipated permitting timelines related to the Goldrush
Project, as well as opportunities for development in the Redhill mining
zone during the permitting process; the planned updating of the
historical Reko Diq feasibility study and targeted first production; our
plans and expected completion and benefits of our growth projects,
including the Goldrush Project, Pueblo Viejo plant expansion and mine
life extension project, including approval of the final location of the
additional TSF for Pueblo Viejo following submission of the ESIA in
the Dominican Republic and changes to the estimated capital cost
of that facility following the completion of pre-feasibility engineering,
proposed Lumwana Super Pit Expansion, new mobile equipment fleet
at Lumwana, and Veladero Phase 7 leach pad and power transmission
line projects, solar power projects at NGM and Loulo-Gounkoto, the
completion of final construction activities for the Turquoise Ridge Third
Shaft, and the Jabal Sayid Lode 1 project; the potential development
of a super pit at Lumwana; capital expenditures related to upgrades
and ongoing management initiatives; Barrick’s global exploration
strategy and planned exploration activities; the timeline for execution
and effectiveness of definitive agreements to implement the binding
Commencement Agreement between PNG and BNL and the timeline
for resolution of outstanding tax audits with PNG’s IRC; the duration of
the temporary suspension of operations at Porgera, the conditions for
the reopening of the mine and the timeline to recommence operations;
our pipeline of high confidence projects at or near existing operations;
potential mineralization and metal or mineral recoveries; our ability to
convert resources into reserves and future reserve replacement; asset
sales, joint ventures and partnerships; Barrick’s strategy, plans, targets
and goals in respect of environmental and social governance issues,
including climate change, greenhouse gas emissions reduction targets
(including with respect to our Scope 3 emissions), TSF management,
responsible water use, biodiversity and human rights initiatives;
Barrick’s engagement with local communities to manage the Covid-19
pandemic; and expectations regarding future price assumptions,
financial performance and other outlook or guidance.
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 MD&A
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. 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); risks associated with projects in the early stages of
evaluation and for which additional engineering and other analysis is
required; risks related to the possibility that future exploration results
56
will not be consistent with the Company’s expectations, that quantities
or grades of reserves will be diminished, and that resources may not
be converted to reserves; risks associated with the fact that certain
of the initiatives described in this MD&A are still in the early stages
and may not materialize; changes in mineral production performance,
exploitation and exploration successes; 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; the
speculative nature of mineral exploration and development; lack of
certainty with respect to foreign legal systems, corruption and other
factors that are inconsistent with the rule of law; changes in national
and local government legislation, taxation, controls or regulations
and/or changes in the administration of laws, policies and practices;
the potential impact of proposed changes to Chilean law on the
status of value added tax refunds received in Chile in connection
with the development of the Pascua-Lama project; expropriation or
nationalization of property and political or economic developments
in Canada, the United States or other countries in which Barrick
does or may carry on business in the future; risks relating to political
instability in certain of the jurisdictions in which Barrick operates;
timing of receipt of, or failure to comply with, necessary permits and
approvals, including the issuance of a ROD for the Goldrush Project
and/or whether the Goldrush Project will be permitted to advance as
currently designed under its Feasibility Study, approval of the final
location of the additional TSF for Pueblo Viejo following submission
of the ESIA in the Dominican Republic, and permitting activities
required to optimize Long Canyon’s life of mine; non-renewal of key
licenses by governmental authorities, including the new SML for
Porgera; failure to comply with environmental and health and safety
laws and regulations; contests over title to properties, particularly title
to undeveloped properties, or over access to water, power and other
required infrastructure; the liability associated with risks and hazards
in the mining industry, and the ability to maintain insurance to cover
such losses; increased costs and physical risks, including extreme
weather events and resource shortages, related to climate change;
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; risks related to
operations near communities that may regard Barrick’s operations
as being detrimental to them; litigation and legal and administrative
proceedings; 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;
technical
increased costs, delays, suspensions and
challenges associated with the construction of capital projects; risks
associated with working with partners in jointly controlled assets;
risks related to 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; risk of
loss due to acts of war, terrorism, sabotage and civil disturbances;
risks associated with artisanal and illegal mining; risks associated
with Barrick’s infrastructure, information technology systems and
the implementation of Barrick’s technological initiatives; 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; the impact of inflation, including global inflationary pressures
driven by supply chain disruptions caused by the ongoing Covid-19
pandemic and global energy cost increases following the invasion of
Ukraine by Russia; adverse changes in our credit ratings; fluctuations
in the currency markets; changes in U.S. dollar interest rates; risks
arising from holding derivative instruments (such as credit risk, market
liquidity risk and mark-to-market risk); risks related to the demands
placed on the Company’s management, the ability of management to
implement its business strategy and enhanced political risk in certain
jurisdictions; uncertainty whether some or all of Barrick’s targeted
investments and projects will meet the Company’s capital allocation
objectives and internal hurdle rate; whether benefits expected from
recent transactions are realized; business opportunities that may be
presented to, or pursued by, the Company; our ability to successfully
integrate acquisitions or complete divestitures; risks related to
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS competition in the mining industry; employee relations including loss
of key employees; availability and increased costs associated with
mining inputs and labor; risks associated with diseases, epidemics
and pandemics, including the effects and potential effects of the global
Covid-19 pandemic; risks related to the failure of internal controls;
and risks related to the impairment of the Company’s goodwill and
assets. Barrick also cautions that its 2023 guidance may be impacted
by the ongoing business and social disruption caused by the spread
of Covid-19.
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 MD&A 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 MD&A. We disclaim 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.
INDEX
58 Overview
58 Our Vision
58 Our Business
58 Our Strategy
59 Financial and Operating Highlights
62 Key Business Developments
64 Outlook for 2023
67 Environmental, Social and Governance
69 Market Overview
71 Reserves and Resources
72 Risks and Risk Management
74 Production and Cost Summary
76 Operating Performance
77 Nevada Gold Mines
78 Carlin
80 Cortez
82 Turquoise Ridge
84 Other Mines – Nevada Gold Mines
85 Pueblo Viejo
87 Loulo-Gounkoto
89 Kibali
91 Veladero
93 North Mara
95 Bulyanhulu
97 Other Mines – Gold
98 Other Mines – Copper
98 Growth Project Updates
USE OF NON-GAAP FINANCIAL MEASURES
We use the following non-GAAP financial measures in our MD&A:
100 Exploration and Mineral Resource Management
104 Review of Financial Results
•
•
•
•
•
•
•
•
•
•
•
“adjusted net earnings”
“free cash flow”
“EBITDA”
“adjusted EBITDA”
“minesite sustaining capital expenditures”
“project capital expenditures”
“total cash costs per ounce”
“C1 cash costs per pound”
“all-in sustaining costs per ounce/pound”
“all-in costs per ounce” and
“realized price”
For a detailed description of each of the non-GAAP measures used
in this MD&A and a detailed reconciliation to the most directly
comparable measure under IFRS, please refer to the Non-GAAP
Financial Measures section of this MD&A on pages 114–140. Each
non-GAAP financial measure has been annotated with a reference to
an endnote on page 141. The non-GAAP financial measures set out in
this MD&A are intended to provide additional information to investors
and do not have any standardized meaning under IFRS, and therefore
may not be comparable to other issuers, and should not be considered
in isolation or as a substitute for measures of performance prepared in
accordance with IFRS.
104 Revenue
105 Production Costs
106 Capital Expenditures
107 General and Administrative Expenses
107 Exploration, Evaluation and Project Costs
108 Finance Costs, Net
108 Additional Significant Statement of Income Items
109 Income Tax Expense
110 Financial Condition Review
111 Balance Sheet Review
111 Shareholders’ Equity
111 Financial Position and Liquidity
111 Summary of Cash Inflow (Outflow)
112 Summary of Financial Instruments
113 Commitments and Contingencies
113 Review of Quarterly Results
114
Internal Control Over Financial Reporting
and Disclosure Controls and Procedures
114
IFRS Critical Accounting Policies
and Accounting Estimates
114 Non-GAAP Financial Measures
140 Technical Information
141 Endnotes
154 Glossary of Technical Terms
155 Mineral Reserves and Mineral Resources Tables
164 Management’s Responsibility
164
Management’s Report on Internal
Control Over Financial Reporting
165
Independent Auditor’s Report
168 Financial Statements
173 Notes to Consolidated Financial Statements
57
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
OVERVIEW
Our Vision
We strive to be the world’s most valued gold and copper mining
business by finding, developing and owning the best assets, with the
best people, to deliver sustainable returns for our owners and partners.
Our Business
Barrick is one of the world’s leading gold mining companies with
annual gold production and gold reserves that are among the largest in
the industry. We are principally engaged in the production and sale of
gold and copper, as well as related activities such as exploration and
mine development. We hold ownership interests in thirteen producing
gold mines, including six Tier One Gold Assets1 and a diversified
exploration portfolio positioned for growth in many of the world’s most
prolific gold districts. These gold mines are geographically diversified
and are located in Argentina, Canada, Côte d’Ivoire, the Democratic
Republic of Congo, the Dominican Republic, Mali, Tanzania and the
United States. Our mine in Papua New Guinea was placed on care
and maintenance in April 2020. Our three copper mines are located
in Zambia, Chile and Saudi Arabia. Our exploration and development
projects are located throughout the world, including the Americas,
Asia and Africa. We sell our production in the world market through
the following distribution channels: gold bullion is sold in the gold spot
market or to independent refineries; gold and copper concentrate
is sold to independent smelting or trading companies; and copper
cathode is sold to third-party purchasers or on exchange. Barrick
shares trade on the New York Stock Exchange under the symbol
GOLD and the Toronto Stock Exchange under the symbol ABX.
2022 REVENUE ($ millions)
Gold $9,920
Copper $868
Other $225
Our Strategy
Our strategy is to operate as business owners by attracting and
developing world-class people who understand and are involved in the
value chain of the business, act with integrity and are tireless in their
pursuit of excellence. We are focused on returns to our stakeholders
by optimizing free cash flow, managing risk to create long-term value
for our shareholders and partnering with host governments and our
local communities to transform their country’s natural resources into
sustainable benefits and mutual prosperity. We aim to achieve this
through the following:
Asset Quality
• Grow and invest in a portfolio of Tier One Gold Assets1, Tier Two
Gold Assets2, Tier One Copper Assets3 and Strategic Assets4 with
an emphasis on organic growth to leverage our existing footprint.
We will focus our efforts on identifying, investing in and developing
assets that meet our investment criteria. The required IRR for Tier
One Gold Assets and Tier Two Gold Assets is 15% and 20%,
respectively, based on our long-term gold price assumption. The
required IRR for Tier One Copper Assets is 15% based on our
long-term copper price assumption.
Invest in exploration across extensive land positions in many of the
world’s most prolific gold and copper districts.
•
• Maximize the long-term value of our strategic Copper Business5.
• Sell non-core assets over time in a disciplined manner.
Operational Excellence
• Strive for zero harm workplaces.
• Operate a flat management structure with a strong ownership
culture.
• Streamline management and operations, and hold management
accountable for the businesses they manage.
• Leverage innovation and technology to drive industry-leading
efficiencies.
• Build trust-based partnerships with our host governments, business
partners, and local communities to drive shared long-term value.
Sustainable Profitability
• Follow a disciplined approach to growth and proactively manage
our impacts on the wider environment, emphasizing long-term
value for all stakeholders.
Increase returns to shareholders, driven by a focus on return on
capital, IRR and free cash flow6.
•
Numerical annotations throughout the text of this document refer to the endnotes
found on page 141.
58
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS FINANCIAL AND OPERATING HIGHLIGHTS
Financial Results ($ millions)
Revenues
Cost of sales
Net (loss) earningsa
Adjusted net earningsb
Adjusted EBITDAb
Adjusted EBITDA marginb,c
Minesite sustaining capital expendituresb,d
Project capital expendituresb,d
Total consolidated capital expendituresd,e
Net cash provided by operating activities
Net cash provided by operating activities marginf
Free cash flowb
Net (loss) earnings per share (basic and diluted)
Adjusted net earnings (basic)b per share
Weighted average diluted common shares
(millions of shares)
Operating Results
Gold production (thousands of ounces)g
Gold sold (thousands of ounces)g
Market gold price ($/oz)
Realized gold priceb,g ($/oz)
Gold cost of sales (Barrick’s share)g,h ($/oz)
Gold total cash costsb,g ($/oz)
Gold all-in sustaining costsb,g ($/oz)
Copper production (millions of pounds)g
Copper sold (millions of pounds)g
Market copper price ($/lb)
Realized copper priceb,g ($/lb)
Copper cost of sales (Barrick’s share)g,i ($/lb)
Copper C1 cash costsb,g ($/lb)
Copper all-in sustaining costsb,g ($/lb)
Financial Position ($ millions)
Debt (current and long-term)
Cash and equivalents
Debt, net of cash
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
2,774
2,093
(735)
220
1,286
46%
557
324
891
795
29%
(96)
(0.42)
0.13
2,527
1,815
241
224
1,155
46%
571
213
792
758
30%
(34)
0.14
0.13
10%
15%
(405%)
(2%)
11%
0%
(2%)
52%
13%
5%
(3%)
(182%)
(400%)
0%
11,013
11,985
7,497
432
1,326
5,613
51%
2,071
949
3,049
3,481
32%
432
0.24
0.75
7,089
2,022
2,065
7,258
61%
1,673
747
2,435
4,378
37%
1,943
1.14
1.16
(8%)
6%
(79%)
(36%)
(23%)
(16%)
24%
27%
25%
(20%)
(14%)
(78%)
(79%)
(35%)
12,595
7,417
2,324
2,042
7,492
59%
1,559
471
2,054
5,417
43%
3,363
1.31
1.15
1,759
1,768
(1%)
1,771
1,779
0%
1,778
1,120
1,111
1,726
1,728
1,324
868
1,242
96
99
3.63
3.81
3.19
2.25
988
997
1,729
1,722
1,226
891
1,269
123
120
3.51
3.24
2.30
1.86
3.98
As at
12/31/22
3.13
As at
9/30/22
13%
11%
0%
0%
8%
(3%)
(2%)
(22%)
(18%)
3%
18%
39%
21%
27%
Change
4,141
4,141
1,800
1,795
1,241
862
1,222
440
445
3.99
3.85
2.43
1.89
4,437
4,468
1,799
1,790
1,093
725
1,026
415
423
4.23
4.32
2.32
1.72
3.18
As at
12/31/22
2.62
As at
12/31/21
(7%)
(7%)
0%
0%
14%
19%
19%
6%
5%
(6%)
(11%)
5%
10%
21%
Change
4,760
4,879
1,770
1,778
1,056
699
967
457
457
2.80
2.92
2.02
1.54
2.23
As at
12/31/20
4,782
4,440
342
5,095
5,240
(6%)
(15%)
(145)
(336%)
4,782
4,440
342
5,150
5,280
(7%)
(16%)
(130)
(363%)
5,155
5,188
(33)
a. Net (loss) earnings represents net earnings attributable to the equity holders of the Company.
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. Represents adjusted EBITDA divided by revenue.
d. Amounts presented on a consolidated cash basis. Project capital expenditures are included in our calculation of all-in costs, but not included in our calculation of
all-in sustaining costs.
e. Total consolidated capital expenditures also includes capitalized interest of $10 million and $29 million, respectively, for the three months and year ended
December 31, 2022 (September 30, 2022: $8 million; 2021: $15 million; 2020: $24 million).
f. Represents net cash provided by operating activities divided by revenue.
g. On an attributable basis.
h. Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using Barrick’s ownership share).
i. Copper cost of sales per pound is calculated as cost of sales across our copper operations divided by pounds sold (both on an attributable basis using Barrick’s
ownership share).
59
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS GOLD PRODUCTIONa (thousands of ounces)
COPPER PRODUCTIONa (millions of pounds)
6,000
5,000
4,000
3,000
2,000
1,000
0
4,760
4,437
4,141
4,200
to
4,600
500
400
300
200
100
0
457
415
440
420
to
470
2020
2021
2022
2023 (est)b
2020
2021
2022
2023 (est)b
GOLD COST OF SALESc, TOTAL CASH COSTSd,
AND ALL-IN SUSTAINING COSTSd ($ per ounce)
COPPER COST OF SALESc, C1 CASH COSTSd,
AND ALL-IN SUSTAINING COSTSd ($ per pound)
1,056
967
699
1,093
1,026
725
1,241 1,222
862
1,170
to
1,250
1,170
to
1,250
820
to
880
1,200
900
600
300
0
2.02
2.23
1.54
2.32
2.62
1.72
2.43
3.18
1.89
3.00
2.00
1.00
0
2020
2021
Cost of sales
Total cash costs
2022
AISC
2023 (est)b
2020
2021
Cost of sales
C1 cash costs
2022
AISC
2.60
to
2.90
2.95
to
3.25
2.05
to
2.25
2023 (est)b
NET EARNINGS, ADJUSTED EBITDAd
AND ADJUSTED EBITDA MARGINe
ATTRIBUTABLE CAPITAL EXPENDITURESf ($ millions)
59%
7,492
61%
7,258
2,324
2,022
2020
2021
Net earnings ($ millions)
Adjusted EBITDA ($ millions)
51%
5,613
432
2022
2,500
2,000
1,500
1,000
500
0
1,651
374
1,259
1,951
576
1,364
2,417
725
1,678
2020
2021
2022
Adjusted EBITDA Margin (%)
Minesite sustaining
Project
OPERATING CASH FLOW AND FREE CASH FLOWd
RETURNS TO SHAREHOLDERS ($ millions)
1,770
1,799
1,800
5,417
4,378
3,363
3,481
1,943
2020
2021
Operating Cash Flow ($ millions)
Free Cash Flow ($ millions)
432
2022
1,600
1,200
800
400
0
547
547
2020
1,384
750
634
2021
1,567
424
1,143
2022
Gold Market Price ($/oz)
Dividend
Return of capital
Share buybacks
8,000
6,000
4,000
2,000
0
5,000
4,000
3,000
2,000
1,000
0
a. On an attributable basis.
b. Based on the midpoint of the 2023 guidance range.
c. Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using 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 using Barrick’s ownership share).
d. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
e. Represents adjusted EBITDA divided by revenue.
f. Total attributable capital expenditures also includes capitalized interest. Minesite sustaining and project capital expenditures are non-GAAP financial measures.
Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
60
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Factors affecting net earnings and adjusted net
earnings6 – three months ended December 31, 2022
versus September 30, 2022
Net loss for the three months ended December 31, 2022 was
$735 million compared to net earnings of $241 million in the prior
quarter. The decrease was primarily due to the following items:
• a goodwill impairment of $950 million (net of non-controlling
interests) related
to Loulo-Gounkoto, a non-current asset
impairment of $318 million (net of tax) and a net realizable value
impairment of leach pad inventory of $27 million (net of tax) at
Veladero, and a non-current asset impairment of $42 million (net
of tax and non-controlling interests) at Long Canyon;
•
the combined $63 million gain on the sale of a portfolio of royalties
to Maverix Metals Inc. and a portfolio of royalties by NGM to Gold
Royalty Corp. occurring in the prior quarter; partially offset by
• an impairment reversal of $120 million and a gain of $300 million
following the completion of the transaction allowing for the
reconstitution of the Reko Diq project.
After adjusting for items that are not indicative of future operating
earnings, adjusted net earnings6 of $220 million for the three months
ended December 31, 2022 was in line with the prior quarter as the
increase in cost of sales per ounce/pound6 and lower copper sales
volumes was largely offset by an increase in gold sales volume and a
higher realized copper price6. Higher gold sales volume was attributed
to a stronger performance at Cortez due to significantly increased ore
tonnes mined from Crossroads and processed at the Cortez oxide mill
as well as higher grades mined from Cortez Hills; at Carlin resulting
from higher grades; and at Tongon reflecting higher grades, throughput
and recoveries. This was partially offset by lower production at Pueblo
Viejo due to decreased throughput, driven by planned maintenance
and lower grades processed. Lower copper sales volumes were
primarily driven by Lumwana due to lower grades processed in line
with the mine plan and decreased throughput following a planned
shutdown of the mill. The realized copper price6 was $3.81 per pound
for the three months ended December 31, 2022, compared to $3.24
per pound in the prior quarter.
Refer to page 114 for a full list of reconciling items between net
earnings and adjusted net earnings6 for the current and previous
periods.
Factors affecting net earnings and adjusted net earnings6 –
year ended December 31, 2022 versus December 31, 2021
Net earnings for the year ended December 31, 2022 were $432 million
compared to $2,022 million in the prior year. The decrease was
primarily due to:
• a goodwill impairment of $950 million (net of non-controlling
to Loulo-Gounkoto, a non-current asset
interests) related
impairment of $318 million (net of tax) and a net realizable value
impairment of leach pad inventory of $27 million (net of tax) at
Veladero, and a non-current asset impairment of $42 million (net
of tax and non-controlling interests) at Long Canyon;
• a gain of $94 million ($213 million before tax and non-controlling
interest) in acquisition/disposition gains, primarily resulting from
the sale of Lone Tree occurring in the prior year;
• an impairment reversal of $64 million ($63 million before tax and
non-controlling interests), primarily resulting from the sale of
our 100% interest in Lagunas Norte, occurring in the prior year;
partially offset by
• an impairment reversal of $120 million and a gain of $300 million
following the completion of the transaction allowing for the
reconstitution of the Reko Diq project; and
the combined $63 million gain on the sale of a portfolio of royalties
to Maverix Metals Inc. and a portfolio of royalties by Nevada Gold
Mines to Gold Royalty Corp.
•
After adjusting for items that are not indicative of future operating
earnings, adjusted net earnings6 of $1,326 million for the year ended
December 31, 2022 was $739 million lower than the prior year. The
decrease in adjusted net earnings6 was primarily due to higher gold/
copper cost of sales per ounce/pound7, lower gold sales volumes and
lower realized copper prices6, partially offset by higher copper sales
volumes. The increase in gold/copper cost of sales per ounce/pound7
was attributed to higher input prices for energy, labor and consumables
driven by inflationary pressures initially related to global supply chain
constraints, and then exacerbated by the Russian invasion of Ukraine.
Lower gold sales volumes were mainly due to the completion of Phase 1
mining in May 2022 at Long Canyon, lower grades processed at Pueblo
Viejo, lower leach and refractory ore tonnes mined at Cortez, and lower
throughput due to maintenance events at Turquoise Ridge. These
impacts were partially offset by increased production at Carlin as
the prior year was impacted by the mechanical mill failure at Carlin’s
Goldstrike roaster, which occurred in May 2021. The increase in
copper sales volumes primarily resulted from higher grades processed
at Lumwana. The realized copper price6 was $3.85 per pound in 2022
compared to $4.32 per pound in the prior year.
Refer to page 114 for a full list of reconciling items between net
earnings and adjusted net earnings6 for the current and previous
periods.
Factors affecting Operating Cash Flow and Free Cash
Flow6 – three months ended December 31, 2022 versus
September 30, 2022
In the three months ended December 31, 2022, we generated $795
million in operating cash flow, compared to $758 million in the prior
quarter. The increase of $37 million was primarily due to lower cash
taxes paid and higher gold sales volumes. This was combined with
an increase in realized copper prices6 and lower total cash costs per
ounce6. These impacts were partially offset by higher interest paid as
a result of the timing of semi-annual interest payments on our bonds,
which occur in the second and fourth quarters. Operating cash flow
was further impacted by an unfavorable movement in working capital,
mainly in accounts receivable. In addition, operating cash flow was
also impacted by lower copper sales volumes and higher C1 cash
costs per pound6.
Free cash flow6 for the three months ended December 31,
2022 was negative $96 million, compared to negative $34 million
in the prior quarter, reflecting higher capital expenditures, partially
offset by higher operating cash flows. In the three months ended
December 31, 2022, capital expenditures on a cash basis were
$891 million compared to $792 million in the prior quarter due to an
increase in project capital expenditures6, partially offset by a slight
decrease in minesite sustaining capital expenditures6. Project capital
expenditures6 increased primarily due to the investment in a new
mining fleet at Lumwana, the continued development of the Gounkoto
underground expansion, as well as the solar plant projects at both
Loulo-Gounkoto and NGM. Minesite sustaining capital expenditures6
decreased slightly compared to the prior quarter, primarily at Cortez
due to lower capitalized waste stripping, partially offset by an increase
in minesite sustaining capital expenditures6 at North Mara related to
the procurement of key underground equipment.
Factors affecting Operating Cash Flow and Free Cash Flow6 –
year ended December 31, 2022 versus December 31, 2021
For the year ended December 31, 2022, we generated $3,481 million
in operating cash flow, compared to $4,378 million in the prior year.
The decrease of $897 million was primarily due to higher gold/copper
total cash costs/C1 cash costs per ounce/pound7, lower gold sales
volumes and lower realized copper prices6. These impacts were
partially offset by lower cash taxes paid and an increase in interest
received on our cash balances resulting from an increase in market
interest rates. Operating cash flow was further impacted by higher
copper sales volumes.
61
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS For 2022, we generated free cash flow6 of $432 million compared
to $1,943 million in the prior year. The decrease primarily reflects lower
operating cash flows and higher capital expenditures. In 2022, capital
expenditures on a cash basis were $3,049 million compared to $2,435
million in the prior year, mainly due to an increase in both minesite
sustaining capital expenditures6 and project capital expenditures6.
Higher minesite sustaining capital expenditures6 were mainly due
to increased capitalized waste stripping at Lumwana and Cortez,
combined with higher spend on the Llagal tailings storage facility and
the purchase of new mining equipment at Pueblo Viejo. Project capital
expenditures6 increased compared to the prior year, mainly due to the
investment in a new mining fleet at Lumwana, the ramp-up of open pit
operations at North Mara and the solar plant projects at both Loulo-
Gounkoto and NGM.
Key Business Developments
Debt Management
On November 23, 2022, Barrick paid $307 million, including $2 million
of accrued and unpaid interest, to purchase $319 million (notional
value) of its 5.250% Notes due in 2042 through a tender transaction.
A gain on debt extinguishment of $12 million was recorded in the
fourth quarter of 2022. Combined with the repurchase of $56 million
(notional value) of the 5.25% Notes due 2042 in the third quarter, this
is expected to yield annualized interest savings of $20 million.
Credit Facility Extended and Sustainability-Linked
Metrics Established
In May 2022, we completed an amendment and restatement of the
Company’s undrawn $3.0 billion revolving credit facility, including an
extension of the termination date by one year to May 2027, replacement
of LIBOR with SOFR as the reference rate for floating interest on
any US dollar funds drawn (currently nil), and the establishment of
sustainability-linked metrics.
The sustainability-linked metrics incorporated into the revolving
credit facility consist of annual environmental and social performance
targets directly influenced by Barrick’s actions, rather than based on
external ratings. The performance targets include Scope 1 and Scope 2
greenhouse gas emissions intensity, water use efficiency (reuse and
recycling rates), and TRIFR8. Barrick may incur positive or negative
pricing adjustments on drawn credit spreads and standby fees based
on its sustainability performance versus the targets that have been set.
Performance Dividend Policy
At the February 15, 2022 meeting, the Board of Directors approved a
performance dividend policy that will enhance the return to shareholders
when the Company’s liquidity is strong. In addition to our base
dividend, the amount of the performance dividend on a quarterly basis
will be based on the amount of cash, net of debt, on our consolidated
balance sheet at the end of each quarter as per the schedule below.
Reflecting this policy, a quarterly dividend payment of $0.10 per
share was declared by the Board of Directors at the February 14,
2023 meeting, comprised only of the base dividend of $0.10 per share
based on our December 31, 2022 consolidated balance sheet. This
follows dividend payments, including performance dividends, of $0.20
per share declared and paid in respect of each of the first and second
quarters of 2022 and $0.15 per share declared and paid in respect of
the third quarter of 2022.
Performance
Dividend
Level
Level I
Level II
Level III
Level IV
Threshold
Level
Net cash
<$0
Net cash
>$0 and
<$0.5B
Net cash
>$0.5B
and <$1B
Net cash
>$1B
Quarterly
Base
Dividend
$0.10
per share
$0.10
per share
Quarterly
Performance
Dividend
Quarterly
Total
Dividend
$0.00
per share
$0.05
per share
$0.10
per share
$0.15
per share
$0.10
per share
$0.10
per share
$0.20
per share
$0.10
per share
$0.15
per share
$0.25
per share
The declaration and payment of dividends is at the discretion of the
Board of Directors, and will depend on the Company’s financial results,
cash requirements, future prospects, the number of outstanding
common shares, and other factors deemed relevant by the Board.
Share Buyback Program
At the February 14, 2023 meeting, the Board of Directors authorized
a new share buyback program for the purchase up to $1 billion of
Barrick’s outstanding shares over the next 12 months. Barrick
repurchased $424 million of shares in 2022 under its prior share
buyback program, which was announced on February 16, 2022, and
terminated in connection with the new program.
The actual number of common shares that may be purchased,
and the timing of any such purchases, will be determined by Barrick
based on a number of factors, including the Company’s financial
performance, the availability of cash flows, and the consideration of
other uses of cash, including capital investment opportunities, returns
to shareholders, and debt reduction.
The repurchase program does not obligate the Company to
acquire any particular number of common shares, and the repurchase
program may be suspended or discontinued at any time at the
Company’s discretion.
Reconstituted Reko Diq Project
On December 15, 2022, Barrick completed the reconstitution of the
Reko Diq project in Pakistan’s Balochistan province. The completion
of this transaction involved, among other things, the execution of all of
the definitive agreements including the mineral agreement stabilizing
the fiscal regime applicable to the project, as well as the grant of mining
leases, an exploration license, and surface rights. This completed
the process that began earlier in 2022 following the conclusion of
a framework agreement among the Governments of Pakistan and
Balochistan province, Barrick and Antofagasta plc, which provided a
path for the development of the project under a reconstituted structure.
The project, which was suspended in 2011 due to a dispute over
the legality of its licensing process, hosts one of the world’s largest
undeveloped open pit copper-gold porphyry deposits.
The reconstituted project is held 50% by Barrick and 50%
by Pakistani stakeholders, comprising a 10% free-carried, non-
contributing share held by the Provincial Government of Balochistan,
an additional 15% held by a special purpose company owned by
the Provincial Government of Balochistan and 25% owned by other
federal state-owned enterprises. Barrick is the operator of the project.
Barrick has started a full update of the project’s 2010 feasibility
and 2011 expansion pre-feasibility studies and plans to finish the
Reko Diq feasibility study update by the end of 2024, with 2028
targeted for first production.
62
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS The key fiscal terms for Reko Diq are a 5% NSR payable to the
Provincial Government of Balochistan, a 1% NSR final tax regime
payable to the Government of Pakistan (subject to a 15-year exemption
following commercial production), and a 0.5% NSR export processing
zone surcharge.
Barrick recognized an impairment reversal of $120 million and a
gain of $300 million on the increased ownership of the project in the
fourth quarter of 2022. Refer to notes 4, 21 and 35 to the Financial
Statements for more information.
Porgera Special Mining Lease Extension
On April 9, 2021, BNL signed a binding Framework Agreement with the
Independent State of PNG and Kumul Minerals, a state-owned mining
company, setting out the terms and conditions for the reopening of the
Porgera mine. On February 3, 2022, the Framework Agreement was
replaced by the Commencement Agreement. The Commencement
Agreement was signed by PNG, Kumul Minerals, BNL and its affiliate
Porgera (Jersey) Limited on October 15, 2021, and it became effective
on February 3, 2022, following signature by MRE, the holder of the
remaining 5% of the original Porgera joint venture. The Commencement
Agreement reflects the commercial terms previously agreed to under
the Framework Agreement, namely that PNG stakeholders will receive
a 51% equity stake in the Porgera mine, with the remaining 49%
to be held by BNL or an affiliate. BNL is jointly owned on a 50/50
basis by Barrick and Zijin Mining Group. Accordingly, following the
implementation of the Commencement Agreement, Barrick’s current
47.5% interest in the Porgera mine is expected to be reduced to
a 24.5% interest as reflected in Barrick’s reserve and resource
estimates for Porgera. BNL will retain operatorship of the mine. The
Commencement Agreement also provides that PNG stakeholders and
BNL and its affiliates will share the economic benefits derived from the
reopened Porgera mine on a 53% and 47% basis over the remaining
life of mine, respectively, and that the Government of PNG will retain
the option to acquire BNL’s or its affiliate’s 49% equity participation at
fair market value after 10 years.
On April 21, 2022, the PNG National Parliament passed legislation
to provide, among other things, certain agreed tax exemptions and tax
stability for the new Porgera joint venture. This legislation was certified
on May 30, 2022, and will come into effect following a public notice
process under PNG law.
On September 13, 2022, the Shareholders’ Agreement for
the new Porgera joint venture company was executed by Porgera
(Jersey) Limited, which is an affiliate of BNL, the state-owned Kumul
Minerals (Porgera) Limited and MRE (a previous version of the
Shareholders’ Agreement had been signed by the BNL and Kumul
parties in April 2022 but was not signed by MRE and therefore did not
take effect). The new Porgera joint venture company was incorporated
on September 22, 2022, and this entity will next apply for a new SML,
the receipt of which is a condition of the reopening of the Porgera mine
under the Commencement Agreement.
The provisions of the Commencement Agreement will be fully
implemented, and work to recommence full mine operations at
Porgera will begin, following the execution of the remaining definitive
agreements and satisfaction of a number of conditions. These include
an Operatorship Agreement pursuant to which BNL will operate the
Porgera mine, as well as a Mine Development Contract to accompany
the new SML that the new Porgera joint venture company will
apply for. Under the terms of the Commencement Agreement,
BNL will remain in possession of the site and maintain the mine on
care and maintenance.
Porgera was excluded from our 2022 guidance and will also be
excluded from our 2023 guidance. We expect to update our guidance
following both the execution of all of the definitive agreements
to implement the binding Commencement Agreement and the
finalization of a timeline for the resumption of full mine operations. Refer
to notes 21 and 35 to the Financial Statements for more information.
Covid-19 Pandemic
Barrick continues to work closely with our local communities on
managing the impacts of the Covid-19 pandemic on our people and
business. Our operations are not currently being impacted in any
significant manner. We continue to monitor developments around the
world and believe we have positioned Barrick as best we can.
Mineral Resource Management Executive Changes
After 26 years of dedicated service, Rodney Quick resigned his
position as Mineral Resource Management and Evaluation Executive
on September 30, 2022 and departed from Barrick at the end of the
year. Mr. Quick joined Randgold in 1996 and was involved in the
exploration, evaluation, and production phases of all of Randgold’s
projects since the discovery and development of the Morila gold mine.
He became responsible for all project development and evaluation for
Randgold in 2009 and assumed the Mineral Resource Management
and Evaluation Executive role with Barrick upon the merger with
Randgold in 2019. Mr. Quick was succeeded by Simon Bottoms
effective October 1, 2022. Mr. Bottoms joined Randgold in 2013 and
has served as the Mineral Resource Manager for Barrick’s Africa and
Middle East region since the merger with Randgold.
Nevada Gold Mines Management Changes
After 19 years of distinguished service, Greg Walker retired from Barrick
at the end of 2022. Mr. Walker joined Barrick in 2003 and has held
progressively senior operational leadership roles during his tenure at
Barrick, including as Senior Vice President, Operational and Technical
Excellence before his appointment as Executive Managing Director,
NGM in 2019. Mr. Walker was succeeded by Peter Richardson who
was appointed Executive Managing Director, NGM on November 2,
2022. Mr. Richardson brings a diversified background with extensive
experience in process engineering, project management, strategy and
business development, as well as mining operations leadership. He
was formerly Senior Vice President and Chief Operating Officer for
Lundin Mining Corp. Mr. Walker served as Technical Advisor to NGM
until his retirement on December 31, 2022.
Africa and Middle East Regional Management Changes
After 13 years of dedicated service, Willem Jacobs retired as Barrick’s
Chief Operating Officer for the Africa and Middle East region at the end
of June 2022. Mr. Jacobs was initially employed by Randgold as the
Chief Operating Officer for Central and East Africa before assuming his
current role at the time of the merger with Randgold.
Mr. Jacobs was succeeded by Sebastiaan Bock. Mr. Bock joined
Randgold in 2008 and previously served as Senior Vice-President,
Chief Financial Officer for Barrick’s Africa and Middle East region since
the merger with Randgold.
Legal Executive Changes
On April 1, 2022, after 25 years of distinguished service, Rich Haddock
transitioned from his position as General Counsel to a new role as
Legal Advisor to Barrick. Over his tenure, Mr. Haddock played a critical
role across the business, including most recently in the successful
reconstitution of the Reko Diq project.
Poupak Bahamin was appointed to the role of General Counsel on
April 1, 2022. Ms. Bahamin has over 25 years of experience practicing
law and joined Barrick in February 2020, after nine years as a partner
with Norton Rose Fulbright.
63
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS Outlook for 2023
Operating Division Guidance
Our 2022 actual gold and copper production, cost of sales, total cash costs6, all-in sustaining costs6 and 2023 forecast gold and copper
production, cost of sales, total cash costs6 and all-in sustaining costs6 ranges by operating division are as follows:
Operating Division
Gold
Carlin (61.5%)c
Cortez (61.5%)d
Turquoise Ridge (61.5%)
Phoenix (61.5%)
Long Canyon (61.5%)
Nevada Gold Mines (61.5%)
Hemlo
North America
Pueblo Viejo (60%)
Veladero (50%)
Porgera (47.5%)e
Latin America & Asia Pacific
Loulo-Gounkoto (80%)
Kibali (45%)
North Mara (84%)
Bulyanhulu (84%)
Tongon (89.7%)
Africa and Middle East
Total Attributable
to Barrickf,g,h
Copper
Lumwana
Zaldívar (50%)
Jabal Sayid (50%)
Total Copperg
2022
attributable
production
(000s ozs)
2022
cost of
salesa
($/oz)
2022
total
cash
costsb
($/oz)
2022
all-in
sustaining
costsb
($/oz)
2023
forecast
attributable
production
(000s ozs)
2023
forecast
cost
of salesa
($/oz)
2023
forecast
total
cash costsb
($/oz)
2023
forecast
all-in
sustaining
costsb ($/oz)
966
450
282
109
55
1,862
133
1,995
428
195
–
623
547
337
263
196
180
1,523
1,069
1,164
1,434
2,039
1,282
1,210
1,628
1,238
1,132
1,628
–
1,306
1,153
1,243
979
1,211
1,748
1,219
877
815
1,035
914
435
876
1,409
912
725
890
–
777
778
703
741
868
1,396
839
1,212
1,258
1,296
1,074
454
1,214
1,788
1,252
1,026
1,528
–
1,189
1,076
948
1,028
1,156
1,592
1,111
910 – 1,000 1,030 – 1,110
820 – 880
1,250 – 1,330
580 – 650 1,080 – 1,160
680 – 740
930 – 1,010
300 – 340 1,290 – 1,370
900 – 960
1,170 – 1,250
100 – 120 1,860 – 1,940
880 – 940
1,110 – 1,190
0 – 10 2,120 – 2,200
730 – 790
1,080 – 1,160
1,900 – 2,100 1,140 – 1,220
790 – 850
1,140 – 1,220
150 – 170 1,400 – 1,480 1,210 – 1,270
1,590 – 1,670
2,100 – 2,300 1,160 – 1,240
820 – 880
1,170 – 1,250
470 – 520 1,130 – 1,210
710 – 770
960 – 1,040
160 – 180 1,630 – 1,710 1,060 – 1,120
1,550 – 1,630
–
–
–
–
630 – 700 1,260 – 1,340
800 – 860
1,110 – 1,190
510 – 560 1,100 – 1,180
750 – 810
1,070 – 1,150
320 – 360 1,080 – 1,160
710 – 770
880 – 960
230 – 260 1,120 – 1,200
900 – 960
1,240 – 1,320
160 – 190 1,230 – 1,310
880 – 940
1,160 – 1,240
180 – 210 1,260 – 1,340 1,070 – 1,130
1,240 – 1,320
1,450 – 1,600 1,130 – 1,210
820 – 880
1,080 – 1,160
4,141
1,241
862
1,222
4,200 – 4,600 1,170 – 1,250
820 – 880
1,170 – 1,250
2022
attributable
production
(M lbs)
2022
cost of
salesa
($/lb)
2022
C1 cash
costsb
($/lb)
2022
all-in
sustaining
costsb
($/lb)
2023
forecast
attributable
production
(M lbs)
2023
forecast
cost
of salesa
($/lb)
2023
forecast C1
cash costsb
($/lb)
2023
forecast
all-in
sustaining
costsb ($/lb)
267
98
75
440
2.42
3.12
1.52
2.43
1.89
2.36
1.26
1.89
3.63
2.95
1.36
3.18
260 – 290
2.45 – 2.75
2.00 – 2.20
100 – 110
3.40 – 3.70
2.60 – 2.80
65 – 75
1.80 – 2.10
1.50 – 1.70
420 – 470
2.60 – 2.90
2.05 – 2.25
3.20 – 3.50
2.90 – 3.20
1.60 – 1.90
2.95 – 3.25
a. Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using 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 using Barrick’s ownership share).
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. Included within our 61.5% interest in Carlin is NGM’s 100% interest in South Arturo.
d. Includes Goldrush.
e. Porgera was placed on temporary care and maintenance on April 25, 2020 and remains excluded from our 2023 guidance. We expect to update our guidance
to include Porgera following both the execution of definitive agreements to implement the Commencement Agreement and the finalization of a timeline for the
resumption of full mine operations. Refer to page 63 for further details.
f. Total cash costs and all-in sustaining costs per ounce include costs allocated to non-operating sites.
g. Operating division guidance ranges reflect expectations at each individual operating division, and may not add up to the company-wide guidance range total.
Guidance ranges exclude Pierina which is producing incidental ounces while in closure.
h. Includes corporate administration costs.
64
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
Operating Division, Consolidated Expense and Capital Guidance
Our 2022 actual gold and copper production, cost of sales, total cash costs6, all-in sustaining costs6, consolidated expenses and capital
expenditures and 2023 forecast gold and copper production, cost of sales, total cash costs6, all-in sustaining costs6, consolidated expenses and
capital expenditures are as follows:
($ millions, except per ounce/pound data)
Gold production
Production (millions of ounces)
Gold cost metrics
Cost of sales – gold ($ per oz)
Total cash costs ($ per oz)b
Depreciation ($ per oz)
All-in sustaining costs ($ per oz)b
Copper production
Production (millions of pounds)
Copper cost metrics
Cost of sales – copper ($ per lb)
C1 cash costs ($ per lb)b
Depreciation ($ per lb)
All-in sustaining costs ($ per lb)b
Exploration and project expenses
Exploration and evaluation
Project expenses
General and administrative expenses
Corporate administration
Stock-based compensationc
Other expense (income)
Finance costs, net
Attributable capital expendituresd
Attributable minesite sustainingb,d
Attributable projectb,d
Total attributable capital expendituresd
2022 Guidancea
2022 Actual
2023 Guidancea
4.20 – 4.60
1,070 – 1,150
730 – 790
300 – 330
1,040 – 1,120
420 – 470
2.20 – 2.50
1.70 – 1.90
0.70 – 0.80
2.70 – 3.00
310 – 350
180 – 200
130 – 150
~180
~130
~50
50 – 70
330 – 370
4,141
1,241
862
339
1,222
440
2.43
1.89
0.72
3.18
350
198
152
159
125
34
(268)
301
4.20 – 4.60
1,170 – 1,250
820 – 880
320 – 350
1,170 – 1,250
420 – 470
2.60 – 2.90
2.05 – 2.25
0.80 – 0.90
2.95 – 3.25
400 – 440
180 – 200
220 – 240
~180
~130
~50
70 – 90
280 – 320
1,350 – 1,550
550 – 650
1,900 – 2,200
1,678
725
2,417
1,450 – 1,700
750 – 900
2,200 – 2,600
a. Based on the communication we received from the Government of PNG that the SML will not be extended, Porgera was placed on temporary care and maintenance
on April 25, 2020. Due to the uncertainty related to the timing and scope of future developments on the mine’s operating outlook, our 2022 and 2023 guidance
excludes Porgera. We expect to update our guidance to include Porgera following both the execution of definitive agreements to implement the Commencement
Agreement and the finalization of a timeline for the resumption of full mine operations. Refer to page 63 for further details. Guidance ranges also exclude Pierina
which is producing incidental ounces while in closure.
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. 2022 actual results are based on a US$17.21 share price and 2023 guidance is based on a one-month trailing average ending December 31, 2022 of US$17.04 per share.
d. Attributable capital expenditures are presented on the same basis as guidance, which includes our 61.5% share of NGM, our 60% share of Pueblo Viejo, our
80% share of Loulo-Gounkoto, our 89.7% share of Tongon, our 84% share of North Mara and Bulyanhulu and our 50% share of Zaldívar and Jabal Sayid. Total
attributable capital expenditures for 2022 actual results also includes capitalized interest of $14 million.
2023 Guidance Analysis
Estimates of future production, cost of sales per ounce7, total cash
costs per ounce6 and all-in sustaining costs per ounce6 presented in
this MD&A are based on mine plans that reflect the expected method
by which we will mine reserves at each site. Actual gold and copper
production and associated costs may vary from these estimates due
to a number of operational and non-operational risk factors (see the
“Cautionary Statement on Forward-Looking Information” on page 56
of this MD&A for a description of certain risk factors that could cause
actual results to differ materially from these estimates).
Gold Production
We expect 2023 gold production to be in the range of 4.2 to 4.6 million
ounces, which is unchanged from our guidance for 2022. We expect
stronger year-over-year performance from Cortez, Pueblo Viejo and
Turquoise Ridge, together with stable delivery across the remaining
Tier One Gold Assets1 as detailed further below. Notably at Turquoise
Ridge, the commissioning of the Third Shaft in the fourth quarter of
2022, combined with increased availability and reliability of the Sage
autoclave, is expected to deliver stronger production in 2023 relative
to the prior year.
Our 2023 gold production guidance currently excludes Porgera.
We expect to update our guidance following both the execution of
all of the definitive agreements to implement the Commencement
Agreement and the finalization of a timeline for the resumption of full
mine operations. This is due to the uncertainty related to the timing and
scope of future operations at Porgera following the decision to place
the mine on temporary care and maintenance on April 25, 2020 to
ensure the safety and security of our employees and communities. We
remain in constructive discussions with the Government of PNG and
are optimistic about finding a solution to allow operations at Porgera to
resume in 2023. Refer to page 63 for more information.
Outside of our Tier One Gold Assets1, we expect the following
significant changes in year-over-year production. As previously
disclosed, mining temporarily ceased at Long Canyon in 2022. As such,
the asset remains a residual leach operation in 2023 while Phase 2 is
advanced through permitting with mining expected to recommence
in 2026. At Veladero, we expect 2023 production to be impacted by
lower recoveries from the heap leach as the operation works to address
challenges with metallurgical recovery of planned ore feed from the pit,
which partially accounted for the asset’s underperformance against
2022 guidance. We also expect higher year-over-year operating and
capital expenditure largely due to significant inflationary pressures
coupled with ongoing Argentine foreign exchange controls (as
described further on page 92).
65
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
Across the four quarters of 2023, the Company’s gold production
is expected to be the lowest in the first quarter. This is mainly due to
lower grades at Kibali due to mine sequencing, the commissioning of
the plant expansion at Pueblo Viejo, as well as roaster maintenance
and the completion of the autoclave carbon-in-leach conversion at
Goldstrike. Separately, major maintenance for the Gold Quarry roaster
at Carlin is planned in the second quarter of 2023. As a result, we
expect the Company’s gold production in the second half of 2023 to be
stronger than the first half driven by the steady ramp-up of throughput
at Pueblo Viejo, the completion of major roaster maintenance at NGM,
as well as higher grades from Kibali and Crossroads (Phase 5) at
Cortez due to mine sequencing.
Gold Cost of Sales per Ounce7
On a per ounce basis, cost of sales applicable to gold7, after removing
the portion related to non-controlling interests, is expected to be in the
range of $1,170 to $1,250 per ounce in 2023, compared to the 2022
actual result of $1,241 per ounce.
This reflects changes in the expected sales mix in 2023 with
a higher contribution from Cortez and Pueblo Viejo (which are
comparatively lower cost) offset by the impact of higher costs at
certain other operations as described further in the Gold Total Cash
Costs per Ounce6 section immediately below.
Gold Total Cash Costs per Ounce6
Total cash costs per ounce6 in 2023 is expected to be in the range
of $820 to $880 per ounce, compared to the 2022 actual result of
$862 per ounce.
This range is based on our expectation that energy pricing should
remain the same or slightly moderate in 2023 compared to the levels
reached in 2022, which we expect to help offset inflationary pressures
throughout our supply chain. This range is also based on planned
improved productivity following commissioning of both the plant
expansion at Pueblo Viejo and Third Shaft at Turquoise Ridge, as well
as the renewal of the mining fleet across several mines in the Company.
In North America, our 2023 guidance for total cash costs per ounce6
for NGM of $790 to $850 per ounce compares to the 2022 actual result
of $876 per ounce. The higher contribution from Cortez, which has a
comparatively lower cost on a per ounce basis, is expected to drive
lower costs for NGM year-over-year.
In Latin America & Asia Pacific, total cash costs per ounce6
at Pueblo Viejo are expected to be slightly higher than 2022 as the
impact of lower grades (in line with the mine and stockpile processing
plan) is partially offset by the benefit of higher throughput from the
plant expansion in the second half of 2023. As described earlier, we
expect higher per ounce costs at Veladero year-over-year, which we
expect to drive a slight increase in total cash costs per ounce6 in 2023
at the regional level compared to 2022.
For Africa and Middle East, total cash costs per ounce6 are
expected to be in line with 2022 with lower costs from Tongon largely
offset by higher costs expected at Kibali, North Mara and Bulyanhulu,
mainly due to inflationary pressures as well as optimizations to the
mineplan which impacted open pit development and stockpile
management for our operations in Tanzania.
Gold All-In Sustaining Costs per Ounce6
All-in sustaining costs per ounce6 in 2023 is expected to be in the
range of $1,170 to $1,250 per ounce, compared to the 2022 actual
result of $1,222 per ounce. This is based on the expectation that
minesite sustaining capital expenditures6 on a per ounce basis will be
higher than 2022 (refer to Capital Expenditures commentary below for
further detail), which is partially offset by slightly lower total cash costs
per ounce6 for the reasons described in the Gold Total Cash Costs per
Ounce6 section above.
Copper Production and Costs
We expect 2023 copper production to be in the range of 420 to
470 million pounds, compared to actual production of 440 million
pounds in 2022. Production in the second half of 2023 is expected
to be stronger than the first half, mainly due to steadily increasing
throughput at Lumwana as we execute on our owner-miner strategy
and commission new fleet equipment. Separately, major maintenance
at Zaldívar is scheduled in the first and third quarters of 2023 as
reported by the operator, Antofagasta.
In 2023, cost of sales applicable to copper7 is expected to be in
the range of $2.60 to $2.90 per pound, which compares to the actual
result of $2.43 per pound for 2022. The expected increase compared
to 2022 reflects higher C1 cash costs per pound6 at Zaldívar and to a
lesser extent, Lumwana. C1 cash costs per pound6 guidance of $2.05
to $2.25 per pound for 2023 is higher than the 2022 actual result of
$1.89 per pound, mainly driven by higher-cost inventory unwinding
from the leach pad at Zaldívar due to the long leach cycle, as well as
slightly lower grades at Lumwana relative to the prior year. Copper
all-in sustaining costs per pound6 guidance of $2.95 to $3.25 for 2023
compares to the actual result of $3.18 in 2022 and is largely driven
by lower minesite sustaining capital expenditures6 on a per pound
basis at Lumwana (refer to Capital Expenditures commentary below
for further detail) partially offset by higher C1 cash costs per pound6
at Zaldívar.
Exploration and Project Expenses
We expect to incur approximately $400 to $440 million of exploration
and project expenses in 2023. This is an increase compared to our
2022 guidance range of $310 to $350 million, and is higher than the
2022 actual result of $350 million.
Within this range, we expect our exploration and evaluation
expenditures in 2023 to be approximately $180 to $200 million. This is
consistent with the 2022 actual result of $198 million and is unchanged
from the guidance range for 2022. This expenditure will continue to
support our resource and reserve conversion over the coming years.
We also expect to incur approximately $220 to $240 million of
project expenses in 2023, compared to $152 million in 2022. The
key driver of this increase is the ongoing feasibility study update for
the Reko Diq project in Pakistan and the Lumwana Super Pit pre-
feasibility study. The remainder of the expected expenditure relates to
Pascua-Lama as well as project evaluation costs across the rest of the
portfolio, particularly in the Latin America & Asia Pacific region.
General and Administrative Expenses
In 2023, we expect corporate administration costs to be approximately
$130 million, which represents the fourth consecutive year we have
kept this guidance range unchanged, notwithstanding inflationary
pressures over the course of 2022. This is in line with the actual result
for 2022 of $125 million.
Separately, stock-based compensation expense in 2023 is
expected to be approximately $50 million based on a share price
assumption of $17.04.
Finance Costs, Net
In 2023, our guidance range for net finance costs of $280 to $320 million
primarily represents interest expense on long-term debt, non-cash
interest expense relating to the gold and silver streaming agreements
at Pueblo Viejo, and accretion, net of finance income. This guidance
for 2023 is consistent with the actual result for 2022 of $301 million.
Capital Expenditures
Total attributable gold and copper capital expenditure for 2023 is
expected to be in the range of $2,200 to $2,600 million. This compares
to the actual spend for the 2022 year of $2,417 million. We continue
to focus on the delivery of our project pipeline and expect attributable
project capital expenditures6 to be in the range of $750 to $900 million
in 2023, which is higher than our actual expenditures of $725 million
in 2022. This higher level of spend reflects the final construction and
commissioning activities for the plant expansion at Pueblo Viejo, which
should transition to expenditure solely for the new Naranjo TSF by mid-
2023. In addition, our solar power initiatives at Loulo-Gounkoto and
NGM continue to progress as we advance towards our interim 2030
GHG emissions reduction target. The balance of expected project
capital expenditures6 is mainly related to underground development
and infrastructure at Goldrush, open pit development at North Mara
and the new mining fleet at Lumwana as we execute our owner-miner
strategy.
66
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Attributable minesite sustaining capital expenditure6 for 2023
is expected to be in the range of $1,450 to $1,700 million, which
compares to the actual spend for 2022 of $1,678 million. The
guidance range for 2023 is split between our gold assets ($1,170 to
$1,370 million) and copper assets ($280 to $330 million). Compared
to the prior year, minesite sustaining capital expenditures6 in 2023
are expected to be approximately $100 million higher at NGM, driven
by underground infrastructure development, haul truck replacements
at Carlin, as well as the natural gas conversion project at the TS
Power Plant. Significant underground infrastructure projects include
the portals at Pete Bajo and Rita K, the Meikle paste plant as well as
dewatering at Carlin. Offsetting this impact, minesite sustaining capital
expenditures6 at Lumwana are expected to be approximately $80 million
lower compared to 2022.
Effective Income Tax Rate
Based on a gold price assumption of $1,650/oz, our expected effective
tax rate range for 2023 is 27% to 32%, unchanged from 2022. The
rate is sensitive to the relative proportion of sales in high versus low
tax jurisdictions, realized gold and copper prices, the proportion of
income from our equity accounted investments and the level of non-
tax affected costs in countries where we generate net losses.
OUTLOOK ASSUMPTIONS AND ECONOMIC SENSITIVITY ANALYSIS
Gold price sensitivity
Copper price sensitivity
2023 Guidance
Assumption
Hypothetical
Change
Impact on
EBITDAa
(millions)
Impact on TCC
and AISCa
$ 1,650/oz
+/- $ 100/oz
+/- $ 590
+/- $
5/oz
$ 3.50/lb
+/- $ 0.25/lb
+/- $ 110
+/- $ 0.01/lb
a. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
Environmental, Social and Governance
Sustainability is entrenched in our DNA: our sustainability strategy is
our business plan.
Barrick’s approach to sustainability is integrated and holistic;
sustainability aspects and impacts do not occur in silos, but rather
overlap and interlink, and must be tackled in conjunction with, and
reference to, each other. We call this approach Holistic and Integrated
Sustainability Management. Although we integrate our sustainability
management, we discuss our sustainability strategy within four
overarching pillars: (1) respecting human rights; (2) protecting the
health and safety of our people and local communities; (3) sharing
the benefits of our operations; and (4) managing our impacts on the
environment.
We implement this strategy by blending top-down accountability
with bottom-up responsibility. This means we place the day-to-day
ownership of sustainability, and the associated risks and opportunities,
in the hands of individual sites. In the same way that each site must
manage its geological, operational and technical capabilities to meet
business objectives, it must also manage and identify programs,
metrics, and targets that measure progress and deliver real value for
the business and our stakeholders, including our host countries and
local communities. The Group Sustainability Executive, supported by
regional sustainability leads, provides oversight and direction over this
site-level ownership, to ensure alignment with the strategic priorities
of the overall business.
Governance
The bedrock of our sustainability strategy is strong governance.
Our most senior management-level body dedicated to sustainability
is the E&S Committee, which connects site-level ownership of our
sustainability strategy with the leadership of the Group. It is chaired
by the President and Chief Executive Officer and includes: (1) regional
Chief Operating Officers; (2) minesite General Managers; (3) Health,
Safety, Environment and Closure Leads; (4) the Group Sustainability
Executive; (5) in-house legal counsel; and (6) an independent
sustainability consultant in an advisory role. The E&S Committee
meets on a quarterly basis to review our performance across a range
of key performance indicators, and to provide independent oversight
and review of sustainability management.
The President and Chief Executive Officer reviews the reports of
the E&S Committee at every quarterly meeting of the Board’s ESG
& Nominating Committee. The reports are reviewed to ensure the
implementation of our sustainability policies and to drive performance
of our environmental, health and safety, corporate social responsibility,
and human rights programs.
This is supplemented by weekly meetings, at a minimum, between
the Regional Sustainability Leads and the Group Sustainability
Executive. These meetings examine the sustainability-related risks
and opportunities facing the business in real time, as well as the
progress and issues integrated into weekly Executive Committee
review meetings.
Our industry-first Sustainability Scorecard accounts for 25% of the
long-term incentive awards for senior leaders as part of the Barrick
Partnership Plan. As we strive for ongoing strong performance, the
Sustainability Scorecard targets and metrics are updated annually. The
results of the 2022 Sustainability Scorecard, and updated metrics and
targets for 2023, will be disclosed in our 2022 Sustainability Report, to
be published in April 2023. The E&S Committee tracks our progress
against all metrics.
In the fourth quarter of 2022, we hosted our Annual Roundtable,
during which we discussed Barrick’s sustainability vision, policies,
approach, and site-level performance,
including Board and
management oversight of sustainability matters. All of the leading
ESG rating firms were invited and the content of the presentation was
based on direct feedback from those ESG rating firms. The session
included a discussion where attendees could ask questions and
engage with the Group Sustainability Executive and other members of
management. The intention of the Roundtable was to provide accurate
and up-to-date information to the ESG ratings firms, allowing those
ratings firms to make informed decisions with respect to their listed
controversies.
significant
shareholders
In late 2022, our Lead Director and the Chair of the Compensation
Committee met with
representing
approximately 30% of the issued and outstanding Barrick Shares (as
at December 31, 2022) to provide an update on a variety of topics,
including our performance, sustainability strategy, environmental
goals, human capital strategy, continued active risk oversight of
increasingly complex geopolitical dynamics, executive compensation
matters, as well as key governance priorities, including Board
composition, diversity, and renewal. The meetings were an instructive
two-way discussion where we heard about our shareholders’ priorities,
discussed Barrick’s sustainability vision and provided an opportunity
for our performance to be constructively challenged.
Human rights
Our commitment to respect human rights is codified in our standalone
Human Rights Policy and informed by the expectations of the United
Nations Guiding Principles on Business and Human Rights, the
Voluntary Principles on Security and Human Rights and the OECD
Guidelines for Multinational Enterprises. This commitment is fulfilled on
the ground via our Human Rights Program, the fundamental principles
of which include: monitoring and reporting, due diligence, training, as
well as disciplinary action and remedy.
67
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
We continue to assess and manage security and human rights
risks at all our operations and provide security and human rights
training to security forces across our sites.
In 2019, prior to Barrick’s acquisition of the minority shareholding
of Acacia Mining plc, the LBMA commenced an IRP against North
Mara, following complaints made by the UK-based non-governmental
organization Rights and Accountability in Development. Due to the
IRP, the refiner MMTC-PAMP appointed independent consultants,
Synergy, to undertake an assessment of North Mara based on the
LBMA’s Responsible Gold Guidance and the OECD Due Diligence
Guidance. Synergy completed site assessments in both 2019 and
2021, as well as several desktop reviews during the process. During the
fourth quarter of 2022, the LBMA confirmed that the IRP is now closed,
citing Synergy’s findings that there has been significant measurable
progress at North Mara since the original assessment in 2019, and
the recommendation that MMTC-PAMP continues trading with North
Mara. This concludes a multi-year process that provides independent
support for the measurable progress and impact implementing
Barrick’s sustainability strategy has had at North Mara.
We continue to face sporadic security challenges at North Mara
as armed and coordinated trespassers continue to intermittently
attempt to access the mine, and place our property and employees
at risk. Intrusions have decreased since 2019 and have remained
relatively stable in the subsequent years. We will continue with our
ongoing extensive community engagement and development efforts
in Tanzania.
Safety
We are committed to the safety, health and well-being of our people,
their families and the communities in which we operate. Our safety
vision is “Every person going home safe and healthy every day.”
We continue to implement our “Journey to Zero Harm” initiative,
which is focused on engagement with our workforce through Visible
Felt Leadership, and by aligning and improving our standards across
the Group, ensuring accountability to our safety commitments, and
ensuring our employees are fit for duty.
We report our safety performance quarterly as part of both our
E&S Committee meetings and to the ESG & Nominating Committee.
Our safety performance is a regular standing agenda item on our
weekly Executive Committee review meeting.
Our safety performance in the fourth quarter of 2022 did not
meet our high standards and regrettably we recorded two fatalities
in December 2022, bringing the total number of fatalities for the year
to five. The first fatality occurred at Loulo-Gounkoto of a contractor
on December 14, 2022, and the second was at Kibali of an employee
on December 22, 2022. Furthermore, in January 2023, two incidents
occurred that resulted in fatalities: one at Jabal Sayid which resulted
in the fatalities of two mining contractors; and one at Carlin that
resulted in the fatality of an employee. Fatality incident investigations
are underway and immediate Fatality Prevention Criteria and gap
assessments are also being implemented across the Group. Group-
wide Safety Intervention and Shift Change Interventions were and
continue to be implemented to reinforce our safety procedures and
communicate our core safety messages and expectations.
In terms of other key performance indicators, for the fourth quarter
of 2022, our LTIFR8 was 0.23 and our TRIFR8 was 0.93. For the 2022
year, the LTIFR improved significantly to 0.29, and the TRIFR improved
to 1.29.
Social
We regard our host communities and countries as important partners
in our business. Our sustainability policies commit us to transparency
in our relationships with host communities, government authorities,
the public and other key stakeholders. Through these policies, we
commit to conducting our business with integrity and with absolute
opposition to corruption. We require our suppliers to operate ethically
and responsibly as a condition of doing business with us.
Community and economic development
Our commitment to social and economic development is set out in
our overarching Sustainable Development and Social Performance
policies. Mining has been identified as vital for the achievement of the
United Nations SDGs, not only for its role in providing the minerals
needed to enable the transition to a lower carbon intensive economy,
but also because of its ability to drive socio-economic development and
build resilience. Creating long-term value and sharing economic benefits
is at the heart of our approach to sustainability, as well as community
development. This approach is encapsulated in three concepts:
The primacy of partnership: this means that we invest in real
partnerships with mutual responsibility. Partnerships include local
communities, suppliers, government, and organizations, and this
approach is epitomized through our CDCs with development initiatives
and investments.
Sharing the benefits: We hire and buy local wherever possible
as this injects money into and keeps it in our local communities and
host countries. By doing this, we build capacity, community resilience
and create opportunity. We also invest in community development
through our CDCs. Sharing the benefits also means paying our fair
share of taxes, royalties and dividends and doing so transparently,
primarily through the reporting mechanism of the Canadian Extractive
Sector Transparency Measures Act. In April 2022, we published our
first Tax Contribution Report which sets out, in detail, our economic
contributions to host governments. We will continue to disclose such
contributions on an annual basis.
Engaging and listening to stakeholders: We develop tailored
stakeholder engagement plans for every operation and the business
as a whole. These plans guide and document how often we engage
with various stakeholder groups and allow us to proactively deal with
issues before they escalate into significant risks.
We continued our community development initiatives through our
CDCs during the quarter. We invested more than $13 million in local
community development projects during the fourth quarter of 2022
and $35 million for the full year 2022.
Environment
We know the environment in which we work and our host communities
are inextricably linked, and we apply a holistic and integrated
approach to sustainability management. Being responsible stewards
of the environment by applying the highest standards of environmental
management, using natural resources and energy efficiently, recycling
and reducing waste as well as working to protect biodiversity, we can
deliver significant cost savings to our business, reduce future liabilities
and help build stronger stakeholder relationships. Environmental
matters such as how we use water, prevent incidents, manage tailings,
respond to changing climate, and protect biodiversity are key areas
of focus.
We maintained our strong track record of stewardship and did not
record any Class 19 environmental incidents during the fourth quarter
of 2022 or for the full year 2022.
Climate Change
The ESG & Nominating Committee is responsible for overseeing
Barrick’s policies, programs and performance relating to sustainability
and the environment, including climate change. The Audit & Risk
Committee assists the Board in overseeing the Group’s management
of enterprise risks as well as the implementation of policies and
standards for monitoring and mitigating such risks. Climate change is
built into our formal risk management process, outputs of which are
regularly reviewed by the Audit & Risk Committee.
Barrick’s climate change strategy has three pillars: (1) identify,
understand and mitigate the risks associated with climate change;
(2) measure and reduce our GHG emissions across our operations
and value chain; and (3) improve our disclosure on climate change.
The three pillars of our climate change strategy do not focus solely
on the development of emissions reduction targets, rather, we integrate
and consider aspects of biodiversity protection, water management and
community resilience in our approach.
68
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS We are acutely aware of the impacts that climate change has on
our host communities and countries, particularly developing nations
which are often the most vulnerable. As the world economy transitions
to renewable power, it is imperative that developing nations are not
left behind. As a responsible business, we have focused our efforts
on building resilience in our host communities and countries, just
as we do for our business. Our climate disclosure is based on the
recommendations of the TCFD.
In November 2022, Barrick attended COP27 in Egypt as part of
a delegation with the ICMM to observe and participate in debate on
climate resilience and action solutions.
Ultimately, our vision is net zero GHG emissions by 2050, achieved
primarily through GHG reductions, with some offsets for hard-to-abate
emissions. Site-level plans to improve energy efficiency, integrate
clean and renewable energy sources and reduce GHG emissions
will also be strengthened. We plan to supplement our corporate
emissions reduction target with context-based site-specific emissions
reduction targets.
During the fourth quarter of 2022, the Group’s total Scope 1
and 2 (location-based) GHG emissions were 1,890 kt CO2-e10. The
Group’s full year Scope 1 and 2 (location-based) GHG emissions were
approximately 2% below the prior year.
Identify, understand and mitigate the risks associated with
climate change
We identify and manage risks, build resilience to climate change,
as well as position ourselves for new opportunities. Climate
change-related factors continue to be incorporated into our formal
risk assessment process. We have identified several climate-related
risks and opportunities for our business including: physical impacts
of climate change; an increase in regulations that seek to address
climate change; and an increase in global investment in innovation and
low-carbon technologies.
The risk assessment process includes scenario analysis, which is
being rolled out to all sites with an initial focus on our Tier One Gold
Assets1, to assess site-specific climate related risks and opportunities.
This work continued throughout the fourth quarter of 2022 at Loulo-
Gounkoto, Kibali and NGM, and we expect to complete this asset-
level physical and transitional risk assessment in early 2023 and to
disclose key findings in our 2022 Sustainability Report.
Measure and reduce the Group’s impact on climate change
Mining is an energy-intensive business, and we understand the
important link between energy use and GHG emissions. By measuring
and effectively managing our energy use, we can reduce our GHG
emissions, achieve more efficient production, and reduce our costs.
We have climate champions at each site who are tasked with
identifying roadmaps and assessing feasibility for our GHG emissions
reductions and carbon offsets for hard-to-abate emissions. Any
carbon offsets that we pursue must have appropriate socio-economic
and/or biodiversity benefits. We have published an achievable
emissions reduction roadmap and continue to assess further reduction
opportunities across our operations. This roadmap is published in our
2021 Sustainability Report and includes committed-capital projects
and projects under investigation that rely on technological advances.
We have also undertaken extensive work across our value chain
in quantifying our Scope 3 (indirect value chain) emissions. This work
has enabled us to develop a Scope 3 engagement roadmap that we
will implement with our suppliers to set meaningful and measurable
reduction targets, in line with the commitments made through the
ICMM Climate Position Paper.
Improve our disclosure on climate change
As part of our commitment to improve our disclosure on climate
change, our Sustainability Report is developed in line with the TCFD
recommendations. Barrick continues to monitor the various regulatory
climate disclosure standards being developed around the world. In
addition, we complete the annual CDP (formerly known as the Carbon
Disclosure Project) Climate Change and Water Security questionnaires.
This ensures our investor-relevant water use, emissions and climate
data is widely available.
Emissions
As detailed in our 2021 Sustainability Report, Barrick’s interim
GHG emissions reduction target is for a minimum 30% reduction
by 2030 against our 2018 baseline, while maintaining a steady
production profile. The basis of this reduction is against a 2018
baseline of 7,541 kt CO2-e.
Our GHG emissions reduction target is grounded in climate
science and has a detailed pathway for achievement. Our target is not
static and will be updated as we continue to identify and implement
new GHG reduction opportunities.
Water
Water is a vital and increasingly scarce global resource. Managing
and using water responsibly is one of the most critical parts of our
sustainability strategy. Our commitment to responsible water use is
codified in our Environmental Policy. Steady, reliable access to water
is critical to the effective operation of our mines. Access to water is
also a fundamental human right.
Understanding the water stress in the regions we operate enables
us to better understand the risks and manage our water resources
through site-specific water balances, based on the ICMM Water
Accounting Framework, aimed at minimizing our water withdrawal and
maximizing water reuse and recycling within our operations.
We include each mine’s water risks in its operational risk register.
These risks are then aggregated and incorporated into the corporate
risk register. Our identified water-related risks include: (1) managing
excess water in regions with high rainfall; (2) maintaining access
to water in arid areas and regions prone to water scarcity; and (3)
regulatory risks related to permitting limits as well as municipal and
national regulations for water use.
We set an annual water recycling and reuse target of 80% for
2022. Our water recycling and reuse rate for the fourth quarter of 2022
increased from the third quarter of 2022 to approximately 84%, and
was approximately 83% for the full year 2022.
Tailings
We are committed to having our TSFs meet global best practices for
safety. Our TSFs are carefully engineered and regularly inspected,
particularly those in regions with high rainfall and seismic events.
We continue to progress with our conformance to the GISTM.
We have completed the consequence classification for a majority
of our sites and the self-assessment for selected sites using the
Conformance Protocols developed by the ICMM. A summary of our
progress is expected to be made public in the third quarter of 2023.
Biodiversity
Biodiversity underpins many of the ecosystem services on which
our mines and their surrounding communities depend. If improperly
managed, mining and exploration activities have the potential to
negatively affect biodiversity and ecosystem services. Protecting
biodiversity and preventing nature loss is also critical and inextricably
linked to the fight against climate change. We work to proactively
manage our impact on biodiversity and strive to protect the
ecosystems in which we operate. Wherever possible, we aim to
achieve a net neutral biodiversity impact, particularly for ecologically
sensitive environments.
We continue to work to implement our BAPs, which have been
established at all our operational sites, during 2022. The BAPs outline
our strategy to achieve net-neutral impacts for all key biodiversity
features and their associated management plans.
Market Overview
The market prices of gold and, to a lesser extent, copper are the
primary drivers of our profitability and our ability to generate free cash
flow6 for our shareholders.
Gold
The price of gold is subject to volatile price movements over
short periods of time and is affected by numerous industry and
macroeconomic factors. During 2022, the gold price ranged from
69
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS $1,615 per ounce to $2,070 per ounce. The average market price for
the year of $1,800 per ounce represented an all-timznnual high, albeit
very close to the 2021 average of $1,799 per ounce.
During the year, the gold price remained strong as a result of
geopolitical tensions, including the invasion of Ukraine by Russia,
global economic uncertainty and the impact of concerns over inflation,
tempered by a strengthening of the trade-weighted US dollar and a
reduction in global gold exchange-traded fund holdings.
We have provisionally priced copper sales for which final price
determination versus the relevant copper index is outstanding
at the balance sheet date. As at December 31, 2022, we recorded
60 million pounds of copper sales still subject to final price
settlement at an average provisional price of $3.80 per pound. The
impact to net income before taxation of a 10% movement in the
market price of copper would be approximately $23 million, holding all
other variables constant.
AVERAGE MONTHLY SPOT GOLD PRICES
(dollars per ounce)
2,000
1,500
1,000
2018
2019
2020
2021
2022
Copper
During 2022, London Metal Exchange copper prices traded in a wide
range of $3.15 per pound to an all-time high of $4.92 per pound,
averaged $3.99 per pound, and closed the year at $3.80 per pound.
Copper prices are heavily influenced by physical demand from
emerging markets, especially China.
After copper prices fell to four-year lows in March 2020 due to
initial concerns and near-term economic impacts from the spread
of Covid-19, they subsequently rose to all-time highs in March 2022
as a result of a growth in economic activity led by the lifting of
pandemic-related restrictions across the globe, low global stockpile
levels, and the expected impact of global financial stimulus measures.
Prices moderated over the remainder of the year as a result of a
strengthening trade-weighted US dollar and ongoing pandemic-
related lockdowns in China.
AVERAGE MONTHLY SPOT COPPER PRICES
(dollars per pound)
Currency Exchange Rates
The results of our mining operations outside of the United States are
affected by fluctuations in exchange rates. We have exposure to the
Argentine peso through operating costs at our Veladero mine, and
peso denominated VAT receivable balances. In addition, we have
exposure to the Canadian and Australian dollars, Chilean peso, Papua
New Guinea kina, Zambian kwacha, Tanzanian shilling, Dominican
peso, West African CFA franc, Euro, South African rand, and British
pound through mine operating and capital costs.
Fluctuations in these exchange rates increase the volatility of our
costs reported in US dollars. In 2022, the Australian dollar traded in
a range of $0.62 to $0.77 against the US dollar, while the US dollar
against the Canadian dollar, Argentine peso, and West African CFA
franc ranged from $1.24 to $1.40, ARS 103 to ARS 177, and XOF 571
to XOF 688, respectively. Due to inflationary pressures in Argentina
and the actions of the government, there was a continued weakening
of the Argentine peso during the year. During 2022, we did not have any
currency hedge positions, and are unhedged against foreign exchange
exposures as at December 31, 2022 beyond spot requirements.
Fuel
For 2022, the price of WTI crude oil traded in a wide range between $70
and $131 per barrel, with an average market price of $94 per barrel,
and closed the year at $80 per barrel. Oil prices were significantly
impacted by an increase in global economic activity, constrained
supply, and geopolitical concerns especially following the invasion of
Ukraine by Russia.
AVERAGE MONTHLY SPOT CRUDE OIL PRICE (WTI)
(dollars per barrel)
120
90
60
30
0
2018
2019
2020
2021
2022
During 2022, we did not have any fuel hedge positions, and are
unhedged against fuel exposures as at December 31, 2022.
2018
2019
2020
2021
2022
5.00
4.50
4.00
3.50
3.00
2.50
2.00
70
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS US Dollar Interest Rates
During March 2020, the US Federal Reserve lowered benchmark
interest rates to a range of 0.00% to 0.25% as a result of the economic
impacts of the spread of Covid-19 and kept rates at that level through
the remainder of 2020 and all of 2021. In response to inflationary
pressure, the US Federal Reserve raised benchmark interest rates
during 2022 to a range of 4.25% to 4.50% by the end of the year. A
lower level of growth in benchmark interest rates is currently expected
during 2023 as those inflationary pressures are forecast to ease, but
any changes to monetary policy will be dependent on economic data
to be observed during the year.
At present, our interest rate exposure mainly relates to interest
income received on our cash balances ($4.4 billion at December 31,
2022); the mark-to-market value of derivative instruments; the carrying
value of certain non-current assets and liabilities; and the interest
payments on our variable-rate debt ($0.1 billion at December 31,
2022). Currently, the amount of interest expense recorded in our
consolidated statement of income is not materially impacted by
changes in interest rates, because the majority of our debt was issued
at fixed interest rates. The relative amounts of variable-rate financial
assets and liabilities may change in the future, depending on the
amount of operating cash flow we generate, as well as the level of
capital expenditures and our ability to borrow on favorable terms
using fixed rate debt instruments. Changes in interest rates affect
the accretion expense recorded on our provision for environmental
rehabilitation and therefore would affect our net earnings.
Reserves and Resources11
For full details of our mineral reserves and mineral resources, refer to
page 155 of the Barrick Annual Report 2022.
Gold Reserves
Barrick’s 2022 mineral reserves are estimated using a gold price
assumption of $1,300 per ounce, relative to $1,200 per ounce in 2021.
Both are reported to a rounding standard of two significant digits,
which remains unchanged since 2019.
As of December 31, 2022, Barrick’s proven and probable gold
reserves were 76 million ounces12 at an average grade of 1.67 g/t,
compared to 69 million ounces13 at an average grade of 1.71 g/t in
2021. Year-over-year, reserves have increased by 6.7 million ounces,
net of depletion, while maintaining grade despite an increase in the
reserve price assumption.
Mineral reserve growth was led by Pueblo Viejo and the Africa and
Middle East region, with nearly 12 million ounces of attributable proven
and probable reserve gains in 2022 before depletion. Our strategy of
investing in organic growth through exploration and mineral resource
management, as well as a focus on quality assets continues to deliver
successive reserve growth over and above annual depletion.
The Africa and Middle East region converted a net of 2.4 million
ounces to attributable proven and probable reserves in 2022, before
depletion, with contributions from Kibali, Loulo-Gounkoto, North Mara,
Bulyanhulu and Tongon. At Loulo-Gounkoto, this was principally from
extensions at the Yalea and Gara underground mines as well as the
Faraba open pit replacing annual depletion. At Kibali, the completion
of an updated underground feasibility study on the 11000 lode in KCD
underground delivered a 0.62 million ounce increase in attributable
proven and probable reserves before depletion. At North Mara, a focus
on underground expansion at Gokona has successfully delivered
a 0.44 million ounce increase in attributable proven and probable
reserves before depletion.
The Latin America & Asia Pacific region converted a net of 7.3 million
ounces to attributable proven and probable reserves. Most notably,
Pueblo Viejo completed a pre-feasibility study for the new Naranjo
TSF, adding 6.5 million ounces of attributable proven and probable
reserves, net of depletion, and extending the mine life beyond 204012,14.
The North America region converted a net of 1.8 million ounces
to attributable proven and probable reserves, before depletion. This
was primarily driven by the completion of pre-feasibility studies for
the Robertson open pit project at Cortez, as well as a new pushback
in the Hemlo open pit. As a result, Robertson’s maiden attributable
proven and probable gold reserves are estimated at 1.0 million ounces
at 0.46 g/t. This represents a milestone for Cortez as a key source
of oxide mill feed in the mine plan. Similarly, the new Hemlo open
pit pushback is expected to commence in 2027 adding 0.86 million
ounces of gold at 1.49 g/t to probable reserves. Proven and probable
attributable reserves for the region are now estimated at 31 million
ounces at 2.54 g/t12.
ATTRIBUTABLE CONTAINED GOLD RESERVES12,13,a (Moz)
69
-4.8
12
76
100
50
0
2021
Depletion
Net conversion
2022
a. Figures rounded to two significant digits.
ATTRIBUTABLE CONTAINED COPPER
RESERVES12,13,a (Blb)
12
-0.6
0.6
12
15
10
5
0
2021
Depletion
Net conversion
2022
a. Figures rounded to two significant digits.
Copper Reserves
For Barrick-operated assets, copper mineral reserves for 2022 are
estimated using a copper price of $3.00 per pound relative to $2.75
per pound in 2021. Both are reported to a rounding standard of two
significant digits, which remains unchanged from 2019.
As of December 31, 2022, attributable proven and probable
copper mineral reserves were 12 billion pounds12 at an average grade
of 0.38%. This is flat relative to the mineral reserves of 12 billion
pounds13 at an average grade of 0.38% in the prior year. The Barrick-
operated Lumwana and Jabal Sayid mines both increased year-over-
year reserves, net of depletion, which was offset by depletion from
the Antofagasta-operated Zaldívar mine. Before depletion, our copper
portfolio converted a net of 640 million pounds to attributable proven
and probable reserves in 2022.
71
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS Gold & Copper Mineral Resources
In 2022, all mineral resources were estimated using a gold price
assumption of $1,700 per ounce and a copper price of $3.75 per
pound, both up from $1,500 per ounce for gold and $3.50 per pound
for copper in 2021 for Barrick-operated assets. Barrick’s mineral
resources for 2022 continue to be reported on an inclusive basis,
incorporating all areas that form mineral reserves. All open-pit mineral
resources are contained within a Whittle shell, while all underground
mineral resources are contained within optimized mineable shapes.
Barrick’s total attributable gold mineral resources grew by nearly
10% relative to 2021, and total attributable copper mineral resources
more than doubled, growing by 124% year-over-year, both net of
annual depletion. This growth is driven by the successful completion
of a preliminary economic assessment supporting the Lumwana
Super Pit expansion, and the incorporation of Reko Diq following the
reconstitution of the project in December 2022.
In the Africa and Middle East region, the Lumwana copper mineral
resource base grew by 89%, net of depletion, relative to 2021,
demonstrating strong potential as a Tier One Copper Asset3 and
providing a robust basis for the ongoing pre-feasibility study.
The reconstitution of the Reko Diq project added an attributable
18 billion pounds of copper at 0.44% with 15 million ounces gold
at 0.26 g/t to indicated resources, and an attributable 4.6 billion
pounds of copper at 0.4% with 3.7 million ounces gold at 0.2 g/t
to inferred resources12. These mineral resources reflect only three
porphyries (H13, H14, H15) as well as the Tanjeel deposit within the
cluster of Western Porphyries. Alongside the ongoing feasibility study
update, the team is also planning to evaluate further known porphyry
occurrences within the mining lease area.
North America also delivered growth in total attributable mineral
resources, net of depletion, supporting future potential reserve
growth in line with our strategy to fully replace depletion for the region
within a five-year period. This was driven by underground resource
extension drilling at both Goldstrike and Leeville in Carlin, as well as
successful resource definition drilling at Goldrush and Robertson in
Cortez, all of which support the potential for future reserve growth in
this region. Measured and indicated attributable gold resources for
the region increased by 2.8 million ounces to 73 million ounces at
2.16 g/t12, from 70 million ounces at 2.22 g/t in 202113. Importantly,
inferred attributable gold resources also increased to 17 million ounces
at 1.8 g/t12, from 16 million ounces at 2.0 g/t in 202113.
Barrick’s attributable measured and indicated gold resources for
2022 stand at 180 million ounces12 at 1.07 g/t, with a further 42 million
ounces12 at 0.8 g/t of inferred resources. This compares to measured
and indicated gold mineral resources of 160 million ounces13 at 1.50 g/t
and inferred gold mineral resources of 42 million ounces at 1.3 g/t in
202113. The overall reduction in grade is due to the addition of Reko Diq.
indicated copper resources for
2022 stand at 44 billion pounds12 at 0.39%, with a further 15 billion
pounds12 at 0.4% of inferred resources. This compares to measured
and indicated copper resources of 24 billion pounds13 at 0.35% and
inferred copper resources of 2.1 billion pounds13 at 0.2% in 2021.
Attributable measured and
2022 mineral reserves and mineral resources are estimated using
the combined value of gold, copper and silver. Accordingly, mineral
reserves and mineral resources are reported for all assets where
copper or silver is produced and sold as a primary product or a by-
product. Barrick’s resources are reported to a rounding standard of
two significant digits.
Risks and Risk Management
Overview
The ability to deliver on our vision, strategic objectives and operating
guidance depends on our ability to understand and appropriately
respond to the uncertainties or “risks” we face that may prevent us
from achieving our objectives. To achieve this, we:
• maintain a framework that permits us to manage risk effectively
and in a manner that creates the greatest value;
•
integrate a process for managing risk into all our important
decision-making processes so that we reduce the effect of
uncertainty on achieving our objectives;
• actively monitor key controls we rely on to achieve the Company’s
objectives so they remain in place and are effective at all times; and
• provide assurance to senior management and relevant committees
of the Board on the effectiveness of key control activities.
Board and Committee Oversight
We maintain strong risk oversight practices, with responsibilities
outlined in the mandates of the Board and related committees. The
Board’s mandate is clear on its responsibility for reviewing and
discussing with management the processes used to assess and
manage risk, including the identification by management of the
principal risks of the business, and the implementation of appropriate
systems to deal with such risks.
The Audit & Risk Committee assists the Board in overseeing the
Company’s management of principal risks and the implementation of
policies and standards for monitoring and modifying such risks, as
well as monitoring and reviewing the Company’s financial position
and financial risk management programs. The ESG & Nominating
Committee assists the Board in overseeing the Company’s policies
and performance for its environmental, health and safety, corporate
social responsibility and human rights programs. The Compensation
Committee assists the Board in ensuring that executive compensation
is appropriately linked to our sustainability performance, including with
respect to climate change and water.
Management Oversight
Our weekly Executive Committee Review is the main forum for senior
management to raise and discuss risks facing the operations and
organization more broadly. Additionally, our most senior management-
level body dedicated to sustainability is the Environmental & Social
Oversight Committee which meets on a quarterly basis to review
sustainability performance and key performance indicators across
our operations. At every quarterly meeting, the ESG & Nominating
Committee and the Audit & Risk Committee are provided with updates
on the key issues identified by management at these regular sessions.
Principal Risks
The following subsections describe some of our key sources of
uncertainty and critical risk mitigation activities. The risks described
below are not the only ones facing Barrick. Our business is subject to
inherent risks in financial, regulatory, strategic and operational areas.
For a more comprehensive discussion of those inherent risks, see
“Risk Factors” in our most recent Form 40-F/Annual Information Form
on file with the SEC and Canadian provincial securities regulatory
authorities. Also see the “Cautionary Statement on Forward-Looking
Information” on page 56 of this MD&A.
72
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Risk Factor
Free cash flow6 and costs
Our ability to improve productivity, drive down operating costs and
working capital remains a focus in 2023 and is subject to several
sources of uncertainty. This includes our ability to achieve and maintain
industry-leading margins by improving the productivity and efficiency
of our operations.
Social license to operate
At Barrick, we are committed to building, operating, and closing our
mines in a safe and responsible manner. To do this, we seek to build
trust-based partnerships with host governments and local communities
to drive shared long-term value while working to minimize the social
and environmental impacts of our activities. Geopolitical risks such as
resource nationalism and incidents of corruption are inherent in the
business of a company operating globally. Past environmental incidents
in the extractive industry highlight the hazards (e.g., water management,
tailings storage facilities, etc.) and the potential consequences to the
environment, community health and safety. Our ability to maintain
compliance with regulatory and community obligations in order to
protect the environment and our host communities alike remains one
of our top priorities. Barrick also recognizes climate change as an area
of risk requiring specific focus and that reducing GHG emissions to
counter the causes of climate change requires strong collective action
by the mining industry.
Resources and reserves and production outlook
Like any mining company, we face the risk that we are unable to
discover or acquire new resources or that we do not convert resources
into production. As we move into 2023 and beyond, our overriding
objective of growing free cash flow6 continues to be underpinned
by a strong pipeline of organic projects and minesite expansion
opportunities in our core regions. Uncertainty related to these and other
opportunities exists (potentially both favorable and unfavorable) due to
the speculative nature of mineral exploration and development as well
as the potential for increased costs, delays, suspensions and technical
challenges associated with the construction of capital projects.
Financial position and liquidity
Our liquidity profile, level of indebtedness and credit ratings are all
factors in our ability to meet short- and long-term financial demands.
Barrick’s outstanding debt balances impact liquidity through scheduled
interest and principal repayments and the results of leverage ratio
calculations, which could influence our investment grade credit ratings
and ability to access capital markets. In addition, our ability to draw
on our credit facility is subject to meeting its covenants. Our primary
source of liquidity is our operating cash flow, which is dependent on
the ability of our operations to deliver projected future cash flows. The
ability of our operations to deliver projected future cash flows, as well
as future changes in gold and copper market prices, either favorable or
unfavorable, will continue to have a material impact on our cash flow
and liquidity.
Risk Mitigation Strategy
• Maximizing the benefit of higher gold prices through agile
management and operational execution;
• Weekly Executive Committee Review to identify, assess and
respond to risks in a timely manner;
• Enabling simplification and agile decision making through
unification of business systems;
• Supply Chain is decentralized to the operations with a centralized
Strategic Sourcing Group and is focused on mitigating the risks of
rising costs and supply chain disruption; and
• A flat, operationally focused, agile management structure with a
tenet in ownership culture.
• Our commitment to responsible mining is supported by a robust
governance framework, including an overarching Sustainable
Development Policy and related policies in the areas of Biodiversity,
Conflict-Free Gold, Social Performance, Occupational Health and
Safety, Environment and Human Rights;
• Use of our Sustainability Scorecard to track sustainability
performance using key performance indicators aligned to priority
areas set out in our strategy;
• Mandatory training on our Code of Business Conduct and Ethics
as well as supporting policies which set out the ethical behavior
expected of everyone working at, or with, Barrick;
• We take a partnership approach with our host governments. This
means we work to balance our own interests and priorities with
those of our government partners, working to ensure that everyone
derives real value from our operations;
• Established CDCs at each of our operational sites to identify
community needs and priorities and to allocate funds to those
initiatives most meaningful to the local community;
• We open our social and environmental performance to third-party
scrutiny, including through the ISO 14001 re-certification process,
International Cyanide Management Code audits, and annual
human rights impact assessments;
• Our climate change strategy has three pillars: identify, understand
and mitigate the risks associated with climate change; measure
and reduce our impacts on climate change; and improve our
disclosure on climate change;
• We continuously monitor developments around the world and
work closely with our local communities on managing the impacts
of health issues, such as Covid-19 or Ebola outbreaks, on our
people and business; and
• We continuously review and update our closure plans and cost
estimates to plan for environmentally responsible closure and
monitoring of operations.
• Focus on responsible mineral resource management, continuously
improve ore body knowledge, and add to reserves and resources;
• Consolidate and secure dominant land positions in favored
operating districts and emerging new prospective geological
domains;
• Focus on economically feasible discoveries with potential Tier
One1 status;
• Optimize the value of underdeveloped projects; and
•
Identify emerging opportunities and secure them through earn-in
agreements or acquisition.
• Continued focus on generating positive free cash flow6 by
improving the underlying cost structures of our operations in a
sustainable manner;
• Disciplined capital allocation criteria for all investments, to ensure
a high degree of consistency and rigor is applied to all capital
allocation decisions based on a comprehensive understanding of
risk and reward;
• Preparation of budgets and forecasts to understand the impact
of different price scenarios on liquidity, including our capacity to
provide cash returns to shareholders, repurchase outstanding
debt and shares, and formulate appropriate strategies;
• Review of debt and net debt levels to ensure appropriate leverage
and monitor the market for liability management opportunities;
and
• Other options available to the Company to enhance liquidity
include drawing on our $3.0 billion undrawn credit facility, asset
sales, joint ventures, or the issuance of debt or equity securities.
73
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS PRODUCTION AND COST SUMMARY – GOLD
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
516
1,257
906
1,179
265
1,081
878
1,217
140
1,284
848
1,037
78
1,518
1,089
1,304
30
1,901
946
1,037
3
1,812
616
664
98
1,215
764
1,065
139
1,216
822
1,102
97
1,570
617
981
50
2,309
954
1,526
425
1,242
924
1,333
229
1,137
943
1,304
98
1,056
770
1,426
62
1,509
1,105
1,423
30
1,964
953
1,084
6
1,769
662
684
121
1,097
733
1,063
130
1,220
845
1,216
83
1,047
731
876
41
1,430
893
1,570
21%
1%
(2%)
(12%)
16%
(5%)
(7%)
(7%)
43%
22%
10%
(27%)
26%
1%
(1%)
(8%)
0%
(3%)
(1%)
(4%)
(50%)
2%
(7%)
(3%)
(19%)
11%
4%
0%
7%
0%
(3%)
(9%)
17%
50%
(16%)
12%
22%
61%
7%
(3%)
1,862
1,210
876
1,214
966
1,069
877
1,212
450
1,164
815
1,258
282
1,434
1,035
1,296
109
2,039
914
1,074
55
1,282
435
454
428
1,132
725
1,026
547
1,153
778
1,076
337
1,243
703
948
195
1,628
890
1,528
2,036
1,072
705
949
923
968
782
1,087
509
1,122
763
1,013
334
1,122
749
892
109
1,922
398
533
161
739
188
238
488
896
541
745
560
1,049
650
970
366
1,016
627
818
172
1,256
816
1,493
(9%)
13%
24%
28%
5%
10%
12%
11%
(12%)
4%
7%
24%
(16%)
28%
38%
45%
0%
6%
130%
102%
(66%)
73%
131%
91%
(12%)
26%
34%
38%
(2%)
10%
20%
11%
(8%)
22%
12%
16%
13%
30%
9%
2%
2,131
1,029
702
941
1,024
976
790
1,041
491
958
678
998
330
1,064
711
798
126
1,772
649
814
160
869
236
405
542
819
504
660
544
1,060
666
1,006
364
1,091
608
778
226
1,151
748
1,308
Nevada Gold Mines LLC (61.5%)a
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Carlin (61.5%)c
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Cortez (61.5%)d
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Turquoise Ridge (61.5%)
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Phoenix (61.5%)c
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Long Canyon (61.5%)
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Pueblo Viejo (60%)
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Loulo-Gounkoto (80%)
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Kibali (45%)
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Veladero (50%)
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
74
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS PRODUCTION AND COST SUMMARY – GOLD (continued)
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
Porgera (47.5%)e
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Tongon (89.7%)
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Hemlo
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
North Mara
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Buzwagif
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Bulyanhulu
Gold produced (000s oz)
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
Total Attributable to Barrickg
Gold produced (000s oz)
Cost of sales ($/oz)h
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
–
–
–
–
63
1,381
1,070
1,404
38
1,451
1,227
1,557
70
1,030
758
1,301
49
1,237
896
1,401
1,120
1,324
868
1,242
–
–
–
–
41
1,744
1,462
1,607
28
1,670
1,446
1,865
71
956
737
951
48
1,229
898
1,170
988
1,226
891
1,269
–
–
–
–
54%
(21%)
(27%)
(13%)
36%
(13%)
(15%)
(17%)
(1%)
8%
3%
37%
2%
1%
0%
20%
13%
8%
(3%)
(2%)
–
–
–
–
180
1,748
1,396
1,592
133
1,628
1,409
1,788
263
979
741
1,028
196
1,211
868
1,156
4,141
1,241
862
1,222
–
–
–
–
187
1,504
1,093
1,208
150
1,693
1,388
1,970
260
966
777
1,001
40
1,334
1,284
1,291
178
1,079
709
891
4,437
1,093
725
1,026
–
–
–
–
(4%)
16%
28%
32%
(11%)
(4%)
2%
(9%)
1%
1%
(5%)
3%
(100%)
(100%)
(100%)
(100%)
10%
12%
22%
30%
(7%)
14%
19%
19%
86
1,225
928
1,115
255
1,334
747
791
223
1,256
1,056
1,423
261
992
702
929
84
1,021
859
871
44
1,499
832
895
4,760
1,056
699
967
a. These results represent our 61.5% interest in Carlin (including NGM’s 60% interest in South Arturo up until May 30, 2021 and 100% interest thereafter, reflecting
the terms of the Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not already own in exchange for the Lone Tree and
Buffalo Mountain properties and infrastructure, which closed on October 14, 2021), Cortez, Turquoise Ridge, Phoenix and Long Canyon.
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. On September 7, 2021, NGM announced it had entered into an Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not
already own in exchange for the Lone Tree and Buffalo Mountain properties and infrastructure. Operating results within our 61.5% interest in Carlin includes NGM’s
60% interest in South Arturo up until May 30, 2021, and 100% interest thereafter, and operating results within our 61.5% interest in Phoenix includes Lone Tree up
until May 30, 2021, reflecting the terms of the Exchange Agreement which closed on October 14, 2021.
d. Starting in the first quarter of 2021, Goldrush is reported as part of Cortez as it is operated by Cortez management. Comparative periods have been restated to
include Goldrush.
e. As Porgera was placed on care and maintenance on April 25, 2020, no operating data or per ounce data has been provided starting in the third quarter of 2020.
f. With the end of mining at Buzwagi in the third quarter of 2021, as previously reported, we have ceased to include production or non-GAAP cost metrics for Buzwagi
from October 1, 2021 onwards.
g. Excludes Pierina, Morila up until its divestiture in November 2020, Lagunas Norte up until its divestiture in June 1, 2021 and Buzwagi starting in the fourth quarter
of 2021. Some of these assets are producing incidental ounces while in closure or care and maintenance.
h. Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold
(both on an attributable basis using Barrick’s ownership share).
75
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS PRODUCTION AND COST SUMMARY – COPPER
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
Lumwana
Copper production (millions lbs)
Cost of sales ($/lb)
C1 cash costs ($/lb)a
All-in sustaining costs ($/lb)a
Zaldívar (50%)
Copper production (millions lbs)
Cost of sales ($/lb)
C1 cash costs ($/lb)a
All-in sustaining costs ($/lb)a
Jabal Sayid (50%)
Copper production (millions lbs)
Cost of sales ($/lb)
C1 cash costs ($/lb)a
All-in sustaining costs ($/lb)a
Total Attributable to Barrick
Copper production (millions lbs)
Cost of sales ($/lb)b
C1 cash costs ($/lb)a
All-in sustaining costs ($/lb)a
53
3.56
2.34
4.86
25
3.55
2.69
3.60
18
1.72
1.42
1.54
96
3.19
2.25
3.98
82
2.19
1.78
3.50
23
3.20
2.45
2.94
18
1.58
1.41
1.52
123
2.30
1.86
3.13
(35%)
63%
31%
39%
9%
11%
10%
22%
0%
9%
1%
1%
(22%)
39%
21%
27%
267
2.42
1.89
3.63
98
3.12
2.36
2.95
75
1.52
1.26
1.36
440
2.43
1.89
3.18
242
2.25
1.62
2.80
97
3.19
2.38
2.94
76
1.38
1.18
1.33
415
2.32
1.72
2.62
10%
8%
17%
30%
1%
(2%)
(1%)
0%
(1%)
10%
7%
2%
6%
5%
10%
21%
276
2.01
1.56
2.43
106
2.46
1.79
2.25
75
1.42
1.11
1.24
457
2.02
1.54
2.23
a. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
b. 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 using Barrick’s
ownership share).
OPERATING PERFORMANCE
Review of Operating Performance
Our presentation of reportable operating segments consists of nine
gold mines (Carlin, Cortez, Turquoise Ridge, Pueblo Viejo, Loulo-
Gounkoto, Kibali, Veladero, North Mara and Bulyanhulu). Starting in
the first quarter of 2021, Goldrush was included as part of Cortez as
management began reviewing the operating results and assessing
performance on a combined level. The remaining operating segments,
including our remaining gold and copper mines have been grouped
into an “Other Mines” category and will not be reported on individually.
Segment performance is evaluated based on a number of measures
including operating income before tax, production levels and unit
production costs. Certain costs are managed on a consolidated basis
and are therefore not reflected in segment income.
76
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Nevada Gold Mines (61.5% basis)a, Nevada USA
SUMMARY OF OPERATING AND FINANCIAL DATA
For the three months ended
For the years ended
Total tonnes mined (000s)
Open pit ore
Open pit waste
Underground
Average grade (grams/tonne)
Open pit mined
Underground mined
Processed
Ore tonnes processed (000s)
Oxide mill
Roaster
Autoclave
Heap leach
Recovery rateb
Oxide Millb
Roaster
Autoclave
Gold produced (000s oz)
Oxide mill
Roaster
Autoclave
Heap leach
Gold sold (000s oz)
Revenue ($ millions)
Cost of sales ($ millions)
Income ($ millions)
EBITDA ($ millions)c
EBITDA margind
Capital expenditures ($ millions)
Minesite sustainingc
Projectc
Cost of sales ($/oz)
Total cash costs ($/oz)c
All-in sustaining costs ($/oz)c
All-in costs ($/oz)c
12/31/22
36,209
8,250
26,572
1,387
1.55
9.24
2.53
10,052
2,946
1,365
995
4,746
80%
76%
86%
72%
516
127
265
94
30
511
918
645
264
426
46%
169
128
41
1,257
906
1,179
1,260
9/30/22
43,388
5,307
36,701
1,380
1.47
8.61
2.69
7,594
3,037
1,408
1,172
1,977
78%
71%
86%
66%
425
79
236
83
27
424
744
531
215
332
45%
191
163
28
1,242
924
1,333
1,398
Change
(17%)
55%
(28%)
1%
5%
7%
(6%)
32%
(3%)
(3%)
(15%)
140%
3%
7%
0%
9%
21%
61%
12%
13%
11%
21%
23%
21%
23%
28%
2%
(12%)
(21%)
46%
1%
(2%)
(12%)
(10%)
12/31/22
170,302
24,540
140,245
5,517
12/31/21
198,725
37,670
155,724
5,331
1.27
8.96
2.50
34,873
11,964
5,506
4,341
13,062
78%
73%
86%
67%
1,862
350
972
357
183
1,856
3,428
2,275
1,144
1,695
49%
707
584
123
1,210
876
1,214
1,280
0.84
9.32
1.78
49,232
12,334
4,866
4,683
27,349
79%
77%
86%
69%
2,036
364
960
410
302
2,039
3,773
2,186
1,675
2,305
61%
555
458
97
1,072
705
949
997
Change
(14%)
(35%)
(10%)
3%
51%
(4%)
40%
(29%)
(3%)
13%
(7%)
(52%)
(1%)
(5%)
0%
(3%)
(9%)
(4%)
1%
(13%)
(39%)
(9%)
(9%)
4%
(32%)
(26%)
(20%)
27%
28%
27%
13%
24%
28%
28%
12/31/20
223,148
36,305
181,675
5,168
1.14
9.67
2.02
43,174
12,907
5,222
5,418
19,627
80%
73%
86%
71%
2,131
300
1,070
468
293
2,134
3,867
2,186
1,636
2,232
58%
583
459
124
1,029
702
941
998
a. Barrick is the operator of Nevada Gold Mines and owns 61.5%, with Newmont Corporation owning the remaining 38.5%. NGM is accounted for as a subsidiary
with a 38.5% non-controlling interest. These results represent our 61.5% interest in Carlin (including NGM’s 60% interest in South Arturo up until May 30, 2021
and 100% interest thereafter, reflecting the terms of the Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not already
own in exchange for the Lone Tree and Buffalo Mountain properties and infrastructure, which closed on October 14, 2021), Cortez, Turquoise Ridge, Phoenix and
Long Canyon.
b. Excludes the Gold Quarry (Mill 5) concentrator.
c. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
d. Represents EBITDA divided by revenue.
Nevada Gold Mines includes Carlin, Cortez, Turquoise Ridge, Phoenix and Long Canyon. Barrick is the operator of the joint venture and owns
61.5%, with Newmont Corporation owning the remaining 38.5%. Refer to the following pages for a detailed discussion of each minesite’s results.
77
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS Carlin (61.5% basis)a, Nevada USA
SUMMARY OF OPERATING AND FINANCIAL DATA
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
Total tonnes mined (000s)
Open pit ore
Open pit waste
Underground
Average grade (grams/tonne)
Open pit mined
Underground mined
Processed
Ore tonnes processed (000s oz)
Oxide mill
Roaster
Autoclave
Heap leach
Recovery rateb
Roaster
Autoclave
Gold produced (000s oz)
Oxide mill
Roaster
Autoclave
Heap leach
Gold sold (000s oz)
Revenue ($ millions)
Cost of sales ($ millions)
Income ($ millions)
EBITDA ($ millions)c
EBITDA margind
Capital expenditures ($ millions)
Minesite sustainingc
Projectc
Cost of sales ($/oz)
Total cash costs ($/oz)c
All-in sustaining costs ($/oz)c
All-in costs ($/oz)c
11,846
1,686
9,367
793
2.99
7.88
4.29
2,497
617
1,126
503
251
81%
86%
46%
265
16
221
19
9
266
467
291
171
226
17,574
2,274
14,524
776
2.34
7.98
3.42
2,902
618
1,161
555
568
78%
85%
47%
229
10
184
24
11
226
390
261
123
168
48%
43%
85
85
0
1,081
878
1,217
1,217
76
76
0
1,137
943
1,304
1,304
(33%)
(26%)
(36%)
2%
28%
(1%)
25%
(14%)
0%
(3%)
(9%)
(56%)
4%
1%
(2%)
16%
60%
20%
(21%)
(18%)
18%
20%
11%
39%
35%
12%
12%
12%
0%
(5%)
(7%)
(7%)
(7%)
67,971
6,424
58,267
3,280
2.09
8.03
3.60
11,485
2,448
4,528
2,175
2,334
78%
85%
44%
966
48
780
91
47
968
1,752
1,063
685
877
50%
306
306
0
1,069
877
1,212
1,212
75,207
6,472
65,507
3,228
0.78
8.85
2.97
14,282
2,735
3,616
2,221
5,710
77%
85%
46%
923
51
728
102
42
922
1,653
893
733
903
55%
260
260
0
968
782
1,087
1,087
(10%)
(1%)
(11%)
2%
168%
(9%)
21%
(20%)
(10%)
25%
(2%)
(59%)
1%
0%
(4%)
5%
(6%)
7%
(11%)
12%
5%
6%
19%
(7%)
(3%)
(9%)
18%
18%
0%
10%
12%
11%
11%
72,820
6,054
63,579
3,187
2.08
9.36
3.69
12,195
2,936
3,743
3,071
2,445
79%
86%
57%
1,024
38
784
161
41
1,024
1,812
999
795
983
54%
231
231
0
976
790
1,041
1,041
a. On September 7, 2021, NGM announced it had entered into an Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not
already own in exchange for the Lone Tree and Buffalo Mountain properties and infrastructure. Operating results within our 61.5% interest in Carlin includes NGM’s
60% interest in South Arturo up until May 30, 2021, and 100% interest thereafter, reflecting the terms of the Exchange Agreement which closed on October 14, 2021.
b. Excludes the Gold Quarry (Mill 5) concentrator.
c. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
d. Represents EBITDA divided by revenue.
Safety and Environment
For the three months ended
For the years ended
12/31/22
9/30/22
12/31/22
12/31/21
0
0.00
2.27
4
1.76
2.20
6
0.69
2.63
10
1.19
3.08
0
0
0
0
LTI
LTIFR8
TRIFR8
Class 19
environmental
incidents
Unfortunately, on January 23, 2023, an incident occurred at Carlin
which resulted in the tragic fatality of an employee. Fatality incident
investigations are underway. Please refer to page 68 for further details.
Financial Results
Q4 2022 compared to Q3 2022
Carlin’s income for the fourth quarter of 2022 was 39% higher than the
prior quarter mainly due to a lower cost of sales per ounce7 and higher
sales volume.
Gold production in the fourth quarter of 2022 was 16% higher
compared to the prior quarter. As previously reported, processing
of higher grades mined from the Goldstrike 5th NW layback was a
significant contributor to fourth quarter production. In addition, higher
production was driven by higher grades mined and processed from
the Goldstar open pit.
Total tonnes mined in the fourth quarter of 2022 were 33% lower
compared to the prior quarter, driven primarily by a transition in open
pit mining from Goldstar to Gold Quarry as per the mine schedule,
78
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS resulting in longer hauls and shovel movement. In addition, mining at
the Goldstrike 5th NW layback was focused on ore haulage with waste
stripping completed in the prior quarter. Open pit ore tonnes mined
decreased by 26% due to longer hauls. The average open pit mined
grade increased by 28% compared to the prior quarter driven by the
Goldstrike 5th NW layback and Goldstar. Underground mined tonnes
and grade were in line with the prior quarter.
Cost of sales per ounce7 and total cash costs per ounce6 in the
fourth quarter of 2022 were 5% and 7% lower, respectively, than the
prior quarter, mainly due to higher sales volumes, partially offset by
an increase in natural gas prices. In the fourth quarter of 2022, all-
in sustaining costs per ounce6 was 7% lower compared to the prior
quarter mainly due to lower total cash costs per ounce6, combined with
lower minesite sustaining capital expenditures6 on a per ounce basis.
Capital expenditures in the fourth quarter of 2022 were 12% higher
than the prior quarter driven by the timing of mobile equipment deliveries,
as well as the ramp-up of spend on both the autoclave carbon-in-leach
conversion and underground paste plant projects at Goldstrike, partially
offset by lower capitalized stripping in the Goldstar and Goldstrike
open pits as waste stripping was completed in the prior quarter.
2022 compared to 2021
Carlin’s income for 2022 was 7% lower than the prior year, mainly due
to an increase in cost of sales per ounce7, partially offset by higher
sales volume.
INCOME AND EBITDA6,a
PRODUCTIONa
(thousands of ounces)
1,200
600
0
923
966
910
to
1,000
2021
2022
2023 (est)b
a. The results include NGM’s 60% interest in South Arturo up until May 30, 2021
and 100% interest thereafter.
b. Based on the midpoint of the guidance range.
Cost of sales per ounce7 and total cash costs per ounce6 for 2022
were 10% and 12% higher, respectively, than the prior year due to
higher input costs driven by energy and consumable prices as well as
the inclusion of the Nevada mining excise tax effective July 1, 2021,
which more than offset the benefit of higher sales volumes. For 2022,
all-in sustaining costs per ounce6 was 11% higher than the prior year,
due to the impact of higher total cash costs per ounce6 and higher
minesite sustaining capital expenditures6.
COST OF SALES7, TOTAL CASH COSTS6
AND ALL-IN SUSTAINING COSTS6 ($ per ounce)
1,770
983
795
1,799
1,800
903
877
733
685
1,000
800
600
400
200
0
2020
2021
2022
Income ($ millions)
Gold Market Price ($/oz)
EBITDA ($ millions)
a. The results include NGM’s 60% interest in South Arturo up until May 30, 2021
and 100% interest thereafter.
Gold production in 2022 was 5% higher compared to the prior year,
mainly due to higher roaster production following the previously
disclosed mechanical mill failure at the Goldstrike roaster on May 26,
2021, and its impact on production in the prior year. In addition,
the current year benefited from higher production at the heap leach
facilities.
Total tonnes mined in 2022 decreased by 10% compared to the
prior year, mainly due to lower waste tonnes mined at the open pit
operations. At the Goldstar open pit, mining continued to advance in
ore, resulting in lower capitalized waste tonnes mined compared to
the prior year. This was partially offset by higher waste stripping at the
Goldstrike 5th NW layback for most of the current year to meet tailings
dam construction material requirements, as well as to provide access
to higher grade ore in the fourth quarter of 2022. The average open pit
grade mined increased by 168% compared to the prior year, primarily
due to the advancement of mining in the Goldstrike and Goldstar
open pits. Underground tonnes mined and the average grade mined
were 2% higher and 9% lower, respectively, compared to the prior
year, driven by a change in the mix of ore sources across the different
underground operations as per the mine plan.
968
1,087
782
1,069
1,212
877
1,030
to
1,100
1,250
to
1,330
820
to
880
1,200
1,000
800
600
400
200
0
2021
2022
2023 (est)a
Cost of Sales
Total Cash Costs
AISC
a. Based on the midpoint of the guidance range.
Capital expenditures in 2022 increased by 18% from the prior year
driven by higher minesite sustaining capital6, which included higher
spend on tailings dam construction, major improvement projects at
all processing facilities, deliveries of mobile equipment at the open pit
and underground operations, higher underground development, and
higher capitalized drilling.
2022 compared to Guidance
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
966
1,069
877
1,212
950 – 1,030
900 – 980
730 – 790
1,020 – 1,100
Gold production for 2022 was within the guidance range. Cost of
sales per ounce7 and total cash costs per ounce6 were above the
guidance range due to higher input costs, primarily driven by energy
and consumable prices. All-in sustaining costs per ounce6 was higher
than guidance mainly driven by higher total cash costs per ounce6
and increased minesite sustaining capital expenditures due to the
same input cost drivers described above, which impacted capitalized
stripping and underground development.
79
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS Cortez (61.5% basis)a, Nevada USA
SUMMARY OF OPERATING AND FINANCIAL DATA
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
Total tonnes mined (000s)
Open pit ore
Open pit waste
Underground
Average grade (grams/tonne)
Open pit mined
Underground mined
Processed
Ore tonnes processed (000s)
Oxide mill
Roaster
Autoclave
Heap leach
Recovery rate
Oxide Mill
Roaster
Autoclave
Gold produced (000s oz)
Oxide mill
Roaster
Autoclave
Heap leach
Gold sold (000s oz)
Revenue ($ millions)
Cost of sales ($ millions)
Income ($ millions)
EBITDA ($ millions)b
EBITDA marginc
Capital expenditures ($ millions)
Minesite sustainingb
Projectb
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
All-in costs ($/oz)b
17,427
3,849
13,238
340
18,896
540
17,993
363
1.33
10.20
1.82
4,170
611
239
n/a
3,320
80%
77%
84%
n/a
140
78
44
n/a
18
137
241
175
63
122
0.44
9.43
3.21
1,092
617
247
n/a
228
81%
72%
88%
n/a
98
38
52
n/a
8
99
169
105
62
90
51%
53%
42
22
20
1,284
848
1,037
1,175
80
63
17
1,056
770
1,426
1,602
(8%)
613%
(26%)
(6%)
202%
8%
(43%)
282%
(1%)
(3%)
n/a
1,356%
(1%)
7%
(5%)
n/a
43%
105%
(15%)
n/a
125%
38%
43%
67%
2%
36%
(4%)
(48%)
(65%)
18%
22%
10%
(27%)
(27%)
72,551
7,096
64,136
1,319
1.11
9.76
2.06
8,706
2,510
978
n/a
5,218
80%
74%
87%
n/a
450
183
192
n/a
75
449
809
522
277
432
53%
251
187
64
1,164
815
1,258
1,400
74,960
15,456
58,235
1,269
0.71
9.45
1.22
18,333
2,548
1,250
10
14,525
83%
78%
88%
81%
509
192
232
1
84
508
913
570
337
518
57%
177
118
59
1,122
763
1,013
1,129
(3%)
(54%)
10%
4%
56%
3%
69%
(53%)
(1%)
(22%)
n/a
(64%)
(4%)
(5%)
(1%)
n/a
(12%)
(5%)
(17%)
n/a
(11%)
(12%)
(11%)
(8%)
(18%)
(17%)
(7%)
42%
58%
8%
4%
7%
24%
24%
85,740
11,392
73,240
1,108
0.56
9.86
1.41
13,019
2,432
1,479
n/a
9,108
83%
75%
87%
n/a
491
129
286
n/a
76
491
865
470
385
523
60%
235
145
90
958
678
998
1,179
a. Starting in the first quarter of 2021, Goldrush is reported as part of Cortez as it is operated by Cortez management. Comparative periods have been restated to
include Goldrush.
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. Represents EBITDA divided by revenue.
Safety and Environment
For the three months ended
9/30/22
12/31/22
For the years ended
12/31/22
12/31/21
1
0.95
3.78
0
0.00
1.89
6
1.45
4.35
7
1.81
2.85
0
0
0
0
LTI
LTIFR8
TRIFR8
Class 19
environmental
incidents
Financial Results
Q4 2022 compared to Q3 2022
Cortez’s income for the fourth quarter of 2022 was 2% higher than the
prior quarter due to higher sales volume, largely offset by a higher cost
of sales per ounce7.
Gold production in the fourth quarter of 2022 was 43% higher
compared to the prior quarter. This was mainly driven by significantly
higher ore tonnes mined from Crossroads and processed at the
Cortez oxide mill and leach facilities, higher grades mined from
Cortez Hills underground, and higher ore tonnes mined from the
Goldrush development project, partially offset by lower open pit and
underground stockpiles hauled and processed at the Carlin roasters.
80
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Total tonnes mined in the fourth quarter of 2022 were 8% lower
than the prior quarter. Open pit ore tonnes mined and the average
grade mined were both significantly higher compared to the prior
quarter, primarily driven by the transition from stripping at Crossroads
(Phase 5) to oxide ore delivery, as previously disclosed, resulting in
26% lower waste tonnes mined. Underground tonnes mined were 6%
lower while grade mined was 8% higher compared to the prior quarter
due to mine sequencing as per the mine plan.
Cost of sales per ounce7 and total cash costs per ounce6 in the
fourth quarter of 2022 were 22% and 10% higher, respectively, than
the prior quarter, driven by the significant change in the sales mix
to higher-cost open pit ounces which also carry higher depreciation
expense, combined with higher energy prices. In the fourth quarter of
2022, all-in sustaining costs per ounce6 was 27% lower than the prior
quarter, mainly due to lower minesite sustaining capital expenditures6,
partially offset by higher total cash costs per ounce6.
Capital expenditures in the fourth quarter of 2022 were 48% lower
compared to the prior quarter, mainly due to lower minesite sustaining
capital expenditures6, which was driven by a decrease in capitalized
waste stripping at Crossroads (Phase 5).
PRODUCTION
(thousands of ounces)
800
400
509
450
580
to
650
0
2021
2022
2023 (est)a
a. Based on the midpoint of the guidance range.
Cost of sales per ounce7 and total cash costs per ounce6 in 2022 were
4% and 7% higher, respectively, than the prior year mainly due to
higher input costs driven by energy and consumable prices, as well as
the inclusion of the Nevada mining excise tax effective July 1, 2021. For
2022, all-in sustaining costs per ounce6 increased by 24% compared
to the prior year, driven by an increase in minesite sustaining capital
expenditures6 and higher total cash costs per ounce6.
2022 compared to 2021
Cortez’s income in 2022 was 18% lower than the prior year, primarily
due to a higher cost of sales per ounce7 and lower sales volume.
COST OF SALES7, TOTAL CASH COSTS6
AND ALL-IN SUSTAINING COSTS6 ($ per ounce)
INCOME AND EBITDA6
1,770
1,799
1,800
523
518
385
337
432
277
600
400
200
0
1,122
1,013
763
1,258
1,164
815
1,080
to
1,160
930
to
1,010
680
to
740
1,200
1,000
800
600
400
200
0
2020
2021
2022
Cost of Sales
Total Cash Costs
AISC
Income ($ millions)
Income ($ millions)
Gold Market Price ($/oz)
a. Based on the midpoint of the guidance range.
2021
2022
2023 (est)a
EBITDA ($ millions)
EBITDA ($ millions)
Gold production in 2022 was 12% lower than the prior year. This was
primarily driven by lower leach and refractory ore tonnes mined from
both Crossroads and Pipeline, partially offset by an increase in grade
from Cortez Hills underground as well as increased ore tonnes mined
and processed from the Goldrush development project.
Total tonnes mined in 2022 were 3% lower, driven by lower ore
tonnes mined from the three open pits (Crossroads, Cortez Pits, and
Pipeline). Open pit ore tonnes mined were 54% lower compared to the
prior year, primarily driven by the transition from the Pipeline pit, which
ceased mining operations in the first quarter of 2022, to the next phase
at Crossroads (Phase 5). Underground tonnes mined increased by 4%
over the same prior year period, driven by increased development
activity at Goldrush.
Capital expenditures in 2022 increased by 42% from the same
prior year period, due to both higher minesite sustaining capital
expenditures6 and project capital expenditures6. Minesite sustaining
capital expenditures6 were 58% higher compared to the same prior
year period, primarily due to an increase in capitalized waste stripping
at Crossroads. Project capital expenditures6 were 8% higher due to
increased development and exploration activities at Goldrush.
2022 compared to Guidance
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
450
1,164
815
1,258
480 – 530
970 – 1,050
650 – 710
1,010 – 1,090
Gold production for 2022 was below the guidance range, mainly driven
by delays in the ramp-up of the Goldrush development project as
discussed on page 98. Cost of sales per ounce7 and total cash costs
per ounce6 were above the guidance range due to lower production
and sales, higher input costs driven by energy and consumable prices,
as well as higher maintenance expense related to the haul truck fleet.
All-in sustaining costs per ounce6 was also higher than guidance,
mainly driven by higher total cash costs per ounce6 and higher minesite
sustaining capital expenditures6 due to the same input cost drivers as
described above, which impacted capitalized stripping.
81
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS Turquoise Ridge (61.5%)a, Nevada USA
SUMMARY OF OPERATING AND FINANCIAL DATA
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
Total tonnes mined (000s)
Open pit ore
Open pit waste
Underground
Average grade (grams/tonne)
Open pit mined
Underground mined
Processed
Ore tonnes processed (000s)
Oxide Mill
Autoclave
Heap leach
Recovery Rate
Oxide Mill
Autoclave
Gold produced (000s oz)
Oxide Mill
Autoclave
Heap leach
Gold sold (000s oz)
Revenue ($ millions)
Cost of sales ($ millions)
Income ($ millions)
EBITDA ($ millions)a
EBITDA marginb
Capital expenditures ($ millions)
Minesite sustaininga
Projecta
Cost of sales ($/oz)
Total cash costs ($/oz)a
All-in sustaining costs ($/oz)a
All-in costs ($/oz)a
366
107
4
255
1.04
11.90
4.89
602
64
492
46
84%
88%
84%
78
3
75
0
74
130
112
17
49
38%
23
15
8
1,518
1,089
1,304
1,424
241
0
0
241
n/a
9.48
3.61
699
82
617
0
78%
89%
78%
62
1
59
2
64
108
95
11
36
33%
28
19
9
1,509
1,105
1,423
1,559
52%
100%
100%
6%
n/a
26%
35%
(14%)
(22%)
(20%)
100%
8%
(1%)
8%
26%
200%
27%
(100%)
16%
20%
18%
55%
36%
15%
(18%)
(21%)
(11%)
1%
(1%)
(8%)
(9%)
1,053
131
4
918
1.13
11.08
4.26
2,541
329
2,166
46
81%
84%
81%
282
10
266
6
278
501
398
98
208
8,510
3,020
4,656
834
1.69
10.69
3.31
3,793
434
2,452
907
82%
83%
82%
334
16
307
11
337
607
378
229
352
42%
58%
97
67
30
1,434
1,035
1,296
1,405
81
47
34
1,122
749
892
993
(88%)
(96%)
(100%)
10%
15,483
5,150
9,460
873
(33%)
4%
29%
(33%)
(24%)
(12%)
(95%)
(1%)
1%
(1%)
(16%)
(38%)
(13%)
(45%)
(18%)
(17%)
5%
(57%)
(41%)
(28%)
20%
43%
(12%)
28%
38%
45%
41%
2.24
10.44
3.42
3,613
458
2,346
809
83%
88%
83%
330
16
306
8
332
589
353
229
342
58%
51
24
27
1,064
711
798
879
a. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
b. Represents EBITDA divided by revenue.
Safety and Environment
For the three months ended
9/30/22
12/31/22
For the years ended
12/31/22
12/31/21
1
1.39
5.56
0
0.00
2.70
8
2.74
6.84
8
2.85
4.63
0
0
0
0
LTI
LTIFR8
TRIFR8
Class 19
environmental
incidents
Financial Results
Q4 2022 compared to Q3 2022
Turquoise Ridge’s income for the fourth quarter of 2022 was 55%
higher than the prior quarter mainly due to higher sales volume.
Gold production in the fourth quarter of 2022 was 26% higher than
the prior quarter, mainly due to higher underground tonnes and grades
mined, combined with higher autoclave recovery, which was positively
impacted by improved carbon management. This was partially offset
by lower autoclave throughput, which was impacted by a maintenance
shutdown that was brought forward from the first quarter of 2023.
Total tonnes mined increased in the fourth quarter of 2022 by
52% compared to the prior quarter, due to higher underground tonnes
mined from Turquoise Ridge underground and remnant mining in
the Vista open pit, partially offset by lower tonnes mined from Vista
underground. Tonnes mined from Turquoise Ridge underground
improved significantly with the commissioning of the Third Shaft
completed in the fourth quarter of 2022 (refer to page 99 for more
details). Tonnes processed were lower than the prior quarter driven by
the maintenance shutdown at the Sage autoclave as described above.
Consistent with the prior quarter, the plant processed more material
than mined during the current period by drawing upon our long-term
open pit stockpiles from the Vista and Mega pits. Most of this stockpile
was established prior to the formation of Nevada Gold Mines.
82
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Cost of sales per ounce7 and total cash costs per ounce6 in the
fourth quarter of 2022 were consistent with the prior quarter as the
benefit from the improvement in grade and higher recovery were
largely offset by higher energy and autoclave maintenance expense.
All-in sustaining costs per ounce6 were 8% lower than the prior quarter,
mainly reflecting lower minesite sustaining capital expenditures6.
Capital expenditures in the fourth quarter of 2022 were 18%
lower than the prior quarter, due to lower minesite sustaining capital
expenditures6 and slightly lower project capital expenditures6 at the
Third Shaft. Lower minesite sustaining capital6 was primarily due to
reduced underground capital development activity driven by lower
capital development tonnes mined as per the mine plan.
2022 compared to 2021
Turquoise Ridge’s income in 2022 was 57% lower than the prior year,
mainly due to lower sales volume and a higher cost of sales per ounce7.
INCOME AND EBITDA6
1,770
1,799
1,800
PRODUCTION
(thousands of ounces)
500
250
0
334
282
300
to
340
2021
2022
2023 (est)a
a. Based on the midpoint of the guidance range.
Cost of sales per ounce7 and total cash costs per ounce6 in 2022 were
28% and 38% higher, respectively, than the prior year due to higher
maintenance expense, reduced autoclave throughput, and higher
input costs driven by energy and consumable prices, as well as the
inclusion of the Nevada mining excise tax effective July 1, 2021. All-
in sustaining costs per ounce6 increased by 45% compared to the
prior year due to higher minesite sustaining capital expenditures6 and
increased total cash costs per ounce6.
342
352
COST OF SALES7, TOTAL CASH COSTS6
AND ALL-IN SUSTAINING COSTS6 ($ per ounce)
400
300
200
229
229
100
0
208
98
2020
2021
2022
Income ($ millions)
Gold Market Price ($/oz)
EBITDA ($ millions)
Gold production in 2022 was 16% lower compared to the prior year,
primarily due to lower throughput at the Sage autoclave related to
previously disclosed unplanned maintenance events, partially offset
by higher grades processed. In addition, the complex has transitioned
to an underground-only mining operation supplemented by stockpile
reclaim starting in the fourth quarter of 2021, together with residual
production from the heap leach facility.
Total tonnes mined in 2022 decreased by 88% compared to the
prior year. Open pit mining was largely completed in the fourth quarter
of 2021, which was the source of lower grade heap leach material.
This was also the driver behind the 29% increase in average grade
processed compared to the prior year. Underground tonnes mined
were 10% higher compared to the prior year, which benefited from
increased ventilation and hoisting from the Third Shaft following the
completion of commissioning in the fourth quarter of 2022.
1,122
892
749
1,434
1,296
1,035
1,290
to
1,370
1,170
to
1,250
900
to
960
1,600
1,200
800
400
0
2021
2022
2023 (est)a
Cost of Sales
Total Cash Costs
AISC
a. Based on the midpoint of the guidance range.
Capital expenditures in 2022 increased by 20% compared to the
prior year, mainly due to an increase in minesite sustaining capital
expenditures6. This was driven by the same input cost drivers as
described above, which impacted underground development, as well
as an overall increase in underground development tonnes mined. This
was partially offset by lower project capital expenditures6 related to
the Third Shaft project.
2022 compared to Guidance
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
282
1,434
1,035
1,296
330 – 370
1,110 – 1,190
770 – 830
930 – 1,010
As expected and previously disclosed, gold production in 2022
was below the guidance range as operations were disrupted by
maintenance events at the Sage autoclave in the second half of 2022.
All cost metrics were higher than guidance mainly due to the impact of
lower sales volumes, which reflected the disruptions described above,
as well as higher maintenance expense and higher input costs driven
by energy and consumable prices.
83
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS Other Mines – Nevada Gold Mines
SUMMARY OF OPERATING AND FINANCIAL DATA
For the three months ended
Gold
produced
(000s oz)
Phoenix (61.5%)c
Long Canyon (61.5%)
30
3
12/31/22
Total
cash
costs
($/oz)a
All-in
sustaining
costs
($/oz)a
Capital
Expend-
ituresb
Gold
produced
(000s oz)
946
616
1,037
664
2
0
30
6
9/30/22
Total
cash
costs
($/oz)a
All-in
sustaining
costs
($/oz)a
Capital
Expend-
ituresb
953
662
1,084
684
3
0
Cost of
sales
($/oz)
1,964
1,769
Cost of
sales
($/oz)
1,901
1,812
a. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
b. Includes both minesite sustaining and project capital expenditures. Further information on these non-GAAP financial measures, including detailed reconciliations,
is included on pages114–140 of this MD&A.
c. On September 7, 2021, NGM announced it had entered into an Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not
already own in exchange for the Lone Tree and Buffalo Mountain properties and infrastructure. Operating results within our 61.5% interest in Phoenix includes Lone
Tree up until May 30, 2021, reflecting the terms of the Exchange Agreement which closed on October 14, 2021.
Phoenix (61.5%)
Gold production for Phoenix in the fourth quarter of 2022 was in line
with the prior quarter as improved grades and recovery offset lower
mill throughput due to planned maintenance.
Cost of sales per ounce7 and total cash costs per ounce6 in the
fourth quarter of 2022 were 3% and 1% lower, respectively, than the
prior quarter mainly due to the impact of higher sales volume, partially
offset by increased energy prices. In the fourth quarter of 2022, all-in
sustaining costs per ounce6 decreased by 4% compared to the prior
quarter due to lower sustaining capital expenditures6, combined with
slightly lower total cash costs per ounce6.
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
109
2,039
914
1,074
90 – 120
2,000 – 2,080
720 – 780
890 – 970
Compared to our 2022 outlook, gold production and cost of sales
per ounce7 were within guidance. Total cash costs per ounce6 and
all-in sustaining costs per ounce6 were above the guidance ranges
mainly due to lower by-product credits from higher input costs driven
by energy and consumable prices, combined with a decrease in the
realized copper price6.
Long Canyon (61.5%)
Gold production for Long Canyon in the fourth quarter of 2022 was
50% lower compared to the prior quarter, reflecting the expected
decrease in recoveries from the leach pad following the completion of
Phase 1 mining in May 2022, as previously disclosed.
Cost of sales per ounce7 in the fourth quarter of 2022 was 2%
higher mainly due to higher depreciation expense on a per ounce basis,
partially offset by lower total cash costs per ounce6. Total cash costs
per ounce6 and all-in sustaining costs per ounce6 were 7% and 3%
lower, respectively, than the prior quarter driven by lower operating
expense, partially offset by the impact of lower sales volume.
Mining of Phase 1 was completed in May 2022, followed by
residual production over the remainder of the year. We continue to
work on optimizing the asset’s mine life extension, including permitting
activities.
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
55
1,282
435
454
40 – 50
1,420 – 1,500
540 – 600
540 – 620
Compared to our 2022 outlook, gold production was above the
top end of the guidance range. All cost metrics were well below the
guidance ranges driven by higher sales volume, which more than offset
inflationary pressures from higher energy and consumable prices.
84
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
Pueblo Viejo (60% basis)a, Dominican Republic
SUMMARY OF OPERATING AND FINANCIAL DATA
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
Open pit tonnes mined (000s)
Open pit ore
Open pit waste
Average grade (grams/tonne)
Open pit mined
Processed
Autoclave ore tonnes processed (000s)
Recovery rate
Gold produced (000s oz)
Gold sold (000s oz)
Revenue ($ millions)
Cost of sales ($ millions)
Income ($ millions)
EBITDA ($ millions)b
EBITDA marginc
Capital expenditures ($ millions)
Minesite sustainingb
Projectb
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
All-in costs ($/oz)b
5,235
2,427
2,808
1.82
2.43
1,353
92%
98
96
173
116
47
83
48%
95
28
67
1,215
764
1,065
1,757
5,380
1,853
3,527
2.29
2.89
1,501
87%
121
124
212
136
70
109
51%
101
40
61
1,097
733
1,063
1,554
(3%)
31%
(20%)
(21%)
(16%)
(10%)
6%
(19%)
(23%)
(18%)
(15%)
(33%)
(24%)
(6%)
(6%)
(30%)
10%
11%
4%
0%
13%
19,754
6,820
12,934
24,687
7,969
16,718
2.23
2.68
5,669
87%
428
426
776
482
265
411
53%
351
124
227
1,132
725
1,026
1,558
2.41
3.18
5,466
88%
488
497
898
445
445
587
65%
311
96
215
896
541
745
1,178
(20%)
(14%)
(23%)
(7%)
(16%)
4%
(1%)
(12%)
(14%)
(14%)
8%
(40%)
(30%)
(18%)
13%
29%
6%
26%
34%
38%
32%
20,262
6,147
14,115
2.57
3.61
5,297
89%
542
541
954
443
508
644
68%
134
79
55
819
504
660
761
a. Barrick is the operator of Pueblo Viejo and owns 60% with Newmont Corporation owning the remaining 40%. Pueblo Viejo is accounted for as a subsidiary with a
40% non-controlling interest. The results in the table and the discussion that follows are based on our 60% share only.
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. Represents EBITDA divided by revenue.
Safety and Environment
For the three months ended
9/30/22
12/31/22
For the years ended
12/31/22
12/31/21
0
0.00
0.50
1
0.18
1.05
2
0.10
0.72
1
0.07
0.50
0
0
0
0
LTI
LTIFR8
TRIFR8
Class 19
environmental
incidents
Financial Results
Q4 2022 compared to Q3 2022
Pueblo Viejo’s income for the fourth quarter of 2022 was 33% lower
than the prior quarter due to lower sales volume and a higher cost of
sales per ounce7.
Gold production for the fourth quarter of 2022 was 19% lower
than the prior quarter due to lower throughput driven by planned
maintenance as well as lower grades processed in line with the mine
and stockpile processing plan. This was partially offset by higher
recovery.
Cost of sales per ounce7 and total cash costs per ounce6 for the
fourth quarter of 2022 were 11% and 4% higher, respectively, than the
prior quarter primarily reflecting the impact of lower production and
sales volume as well as planned maintenance. This was combined with
lower margins from third-party energy sales at the Quisqueya power
plant driven by lower energy prices. The increase in cost of sales per
ounce7 was also impacted by higher depreciation on a per ounce basis,
resulting from the impact of lower production and sales volumes. For
the fourth quarter of 2022, all-in sustaining costs per ounce6 was in
line with the prior quarter, reflecting higher total cash costs per ounce6,
partially offset by lower sustaining capital expenditures6.
Capital expenditures for the fourth quarter of 2022 decreased
by 6% compared to the prior quarter, mainly due to lower minesite
sustaining capital expenditures6 following the purchase of new mining
equipment occurring in the prior quarter.
2022 compared to 2021
Pueblo Viejo’s income for 2022 was 40% lower than the prior year due
to lower sales volume and a higher cost of sales per ounce7.
85
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS INCOME AND EBITDA6
COST OF SALES7, TOTAL CASH COSTS6
AND ALL-IN SUSTAINING COSTS6 ($ per ounce)
700
600
500
400
300
200
100
0
1,770
1,799
1,800
644
508
587
445
411
265
1,200
900
600
300
0
1,132
1,026
725
1,130
to
1,210
960
to
1,040
710
to
770
896
745
541
2020
2021
2022
Cost of Sales
Total Cash Costs
AISC
Income ($ millions)
Gold Market Price ($/oz)
a. Based on the midpoint of the guidance range.
2021
2022
2023 (est)a
EBITDA ($ millions)
Gold production for 2022 was 12% lower than the prior year, mainly
due to lower grades processed in line with the mine and stockpile
processing plan, partially offset by higher tonnes processed. Pueblo
Viejo once again achieved record throughput in 2022 due to improved
maintenance practices and increased tonnes per operating hour, with
throughput 4% higher than the previous record set in 2021.
PRODUCTION
(thousands of ounces)
600
300
0
488
428
470
to
520
2021
2022
2023 (est)a
a. Based on the midpoint of the guidance range.
Cost of sales per ounce7 and total cash costs per ounce6 for 2022
increased by 26% and 34%, respectively, compared to the prior year,
primarily reflecting the impact of lower grades, as described above,
and higher consumable and energy prices. For 2022, all-in sustaining
costs per ounce6 increased by 38% compared to the prior year, mainly
reflecting higher total cash costs per ounce6 and higher minesite
sustaining capital expenditures6.
Capital expenditures for 2022 increased by 13% compared to the prior
year, mainly due to higher minesite sustaining capital expenditures6
related to the Llagal TSF and the purchase of new mining equipment.
This was combined with increased project capital expenditures6 for
the plant expansion and mine life extension project.
2022 compared to Guidance
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
428
1,132
725
1,026
400 – 440
1,070 – 1,150
670 – 730
910 – 990
Gold production in 2022 was in the upper half of the guidance range.
Cost of sales per ounce7 and total cash costs per ounce6 were also
within the guidance ranges, despite the impact of higher consumable
and energy prices. All-in sustaining costs per ounce6 was higher than
the guidance range mainly driven by increased minesite sustaining
capital expenditures6 largely relating to higher diesel prices and a
higher strip ratio on limestone mining for the Llagal TSF.
86
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Loulo-Gounkoto (80% basis)a, Mali
SUMMARY OF OPERATING AND FINANCIAL DATA
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
Total tonnes mined (000s)
Open pit ore
Open pit waste
Underground
Average grade (grams/tonne)
Open pit mined
Underground mined
Processed
Ore tonnes processed (000s)
Recovery rate
Gold produced (000s oz)
Gold sold (000s oz)
Revenue ($ millions)
Cost of sales ($ millions)
Income ($ millions)
EBITDA ($ millions)b
EBITDA marginc
Capital expenditures ($ millions)
Minesite sustainingb
Projectb
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
All-in costs ($/oz)b
6,417
927
4,653
837
2.68
4.56
4.58
1,041
91%
139
141
245
170
70
125
7,271
643
5,800
828
2.59
4.55
4.34
1,015
92%
130
129
221
157
60
108
51%
49%
76
36
40
1,216
822
1,102
1,386
65
44
21
1,220
845
1,216
1,385
(12%)
44%
(20%)
1%
3%
0%
6%
3%
(1%)
7%
9%
11%
8%
17%
16%
4%
17%
(18%)
90%
0%
(3%)
(9%)
0%
30,845
2,989
24,560
3,296
33,073
1,808
29,050
2,215
2.29
4.58
4.59
4,069
91%
547
548
989
631
342
547
55%
258
152
106
1,153
778
1,076
1,270
3.22
4.68
4.79
4,015
91%
560
558
999
585
380
602
60%
238
159
79
1,049
650
970
1,111
(7%)
65%
(15%)
49%
(29%)
(2%)
(4%)
1%
0%
(2%)
(2%)
(1%)
8%
(10%)
(9%)
(8%)
8%
(4%)
34%
10%
20%
11%
14%
33,036
1,698
29,078
2,260
5.50
4.36
4.76
3,916
91%
544
542
966
576
358
572
59%
185
170
15
1,060
666
1,006
1,034
a. Barrick owns 80% of Société des Mines de Loulo SA and Société des Mines de Gounkoto with the Republic of Mali owning 20%. Loulo-Gounkoto is accounted for
as a subsidiary with a 20% non-controlling interest on the basis that Barrick controls the asset. The results in the table and the discussion that follows are based
on our 80% share, inclusive of the impact of the purchase price allocation resulting from the merger with Randgold.
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. Represents EBITDA divided by revenue.
Safety and Environment
For the three months ended
9/30/22
12/31/22
For the years ended
12/31/22
12/31/21
1
0.22
0.65
0
0.00
0.00
2
0.11
0.45
2
0.11
0.92
0
0
0
0
LTI
LTIFR8
TRIFR8
Class 19
environmental
incidents
Unfortunately, on December 14, 2022, an incident occurred at Loulo-
Gounkoto which resulted in the tragic fatality of a contractor. Fatality
incident investigations are underway. Please refer to page 68 for
further details.
Financial Results
Q4 2022 compared to Q3 2022
Loulo-Gounkoto’s income for the fourth quarter of 2022 was 17%
higher than the prior quarter, mainly due to higher production and
sales volume.
Gold production for the fourth quarter of 2022 was 7% higher than
the prior quarter, mainly due to higher grades and tonnes processed.
Cost of sales per ounce7 for the fourth quarter of 2022 was slightly
lower than the prior quarter due to a lower total cash costs per ounce6,
largely offset by higher depreciation expense. Total cash costs per
ounce6 were 3% lower than the prior quarter, primarily due to the
impact of higher grades. For the fourth quarter of 2022, all-in sustaining
costs per ounce6 decreased by 9% compared to the prior quarter,
primarily reflecting lower minesite sustaining capital expenditures6, as
well as lower total cash costs per ounce6.
Capital expenditures for the fourth quarter of 2022 increased by
17% compared to the prior quarter, mainly due to higher project capital
expenditures6 relating to the continued development of the Gounkoto
underground expansion and the solar plant expansion project, partially
offset by lower minesite sustaining capital expenditures6.
2022 compared to 2021
Loulo-Gounkoto’s income for 2022 was 10% lower than the prior year,
mainly due to lower sales volume and a higher cost of sales per ounce7.
87
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS INCOME AND EBITDA6
COST OF SALES7, TOTAL CASH COSTS6
AND ALL-IN SUSTAINING COSTS6 ($ per ounce)
1,770
1,799
1,800
572
602
547
358
380
342
700
600
500
400
300
200
100
0
1,200
1,000
800
600
400
200
0
1,049
970
650
1,153
1,076
778
1,100
to
1,180
1,070
to
1,150
750
to
810
2020
2021
2022
Income ($ millions)
Gold Market Price ($/oz)
2021
2022
2023 (est)a
Cost of Sales
Total Cash Costs
AISC
EBITDA ($ millions)
a. Based on the midpoint of the guidance range.
Capital expenditures in 2022 were 8% higher compared to the prior
year, mainly due to higher project capital expenditures6 from the
development of the Gounkoto underground, which is expected to
commence initial stoping activities in the first quarter of 2023, as well
as the start of the solar plant expansion project. This was partially
offset by slightly lower minesite sustaining capital expenditures6.
2022 compared to Guidance
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
547
1,153
778
1,076
510 – 560
1,070 – 1,150
680 – 740
940 – 1,020
Gold production in 2022 was in the upper half of the guidance range.
All cost metrics were higher than the guidance ranges as a result of
higher input costs driven by consumable and energy prices as well as
logistical expenses relating to the border closures imposed on Mali by
the Economic Community of West African States as described above.
Gold production in 2022 was 2% lower compared to the prior year,
primarily due to lower grades processed in line with the mine plan,
partially offset by higher tonnes processed.
PRODUCTION
(thousands of ounces)
560
547
510
to
560
600
300
0
2021
2022
2023 (est)a
a. Based on the midpoint of the guidance range.
Cost of sales per ounce7 and total cash costs per ounce6 in 2022 were
10% and 20% higher, respectively, compared to the prior year, mainly
due to the impact of lower grades processed, in line with the mine
plan, as well as higher input costs driven by consumable and energy
prices. This was combined with higher logistical expenses following
the border closures imposed on Mali by the Economic Community of
West African States in the first half of 2022. These sanctions were
lifted in July 2022, with conditions normalizing during the third quarter
of 2022. For 2022, all-in sustaining costs6 were 11% higher compared
to the prior year reflecting higher total cash costs per ounce6, slightly
offset by lower minesite sustaining capital expenditures6.
88
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Kibali (45% basis)a, Democratic Republic of Congo
SUMMARY OF OPERATING AND FINANCIAL DATA
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
Total tonnes mined (000s)
Open pit ore
Open pit waste
Underground
Average grade (grams/tonne)
Open pit mined
Underground mined
Processed
Ore tonnes processed (000s)
Recovery rate
Gold produced (000s oz)
Gold sold (000s oz)
Revenue ($ millions)
Cost of sales ($ millions)
Income ($ millions)
EBITDA ($ millions)b
EBITDA marginc
Capital expenditures ($ millions)
Minesite sustainingb
Projectb
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
All-in costs ($/oz)b
4,820
1,028
3,367
425
1.67
5.70
3.56
954
89%
97
94
164
149
7
97
4,138
561
3,126
451
1.44
5.56
3.26
898
88%
83
88
152
91
45
72
59%
47%
35
28
7
1,570
617
981
1,044
18
13
5
1,047
731
876
940
16%
83%
8%
(6%)
16%
3%
9%
6%
1%
17%
7%
8%
64%
(84%)
35%
26%
94%
115%
40%
50%
(16%)
12%
11%
16,649
2,551
12,428
1,670
1.62
5.62
3.39
3,495
88%
337
332
598
413
142
320
14,657
1,278
11,610
1,769
2.71
5.63
3.62
3,503
90%
366
367
661
373
278
419
54%
63%
92
70
22
1,243
703
948
1,013
70
54
16
1,016
627
818
861
14%
100%
7%
(6%)
(40%)
0%
(6%)
0%
(2%)
(8%)
(10%)
(10%)
11%
(49%)
(24%)
(14%)
31%
30%
38%
22%
12%
16%
18%
13,308
1,380
10,091
1,837
2.22
5.20
3.68
3,434
90%
364
364
648
397
244
418
65%
51
49
2
1,091
608
778
782
a. Barrick owns 45% of Kibali Goldmines SA (Kibali) with the Democratic Republic of Congo and our joint venture partner, AngloGold Ashanti, owning 10% and 45%,
respectively. Kibali is accounted for as an equity method investment on the basis that the joint venture partners that have joint control have rights to the net assets
of the joint venture. The figures presented in this table and the discussion that follows are based on our 45% effective interest in Kibali, inclusive of the impact of
the purchase price allocation resulting from the merger with Randgold.
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. Represents EBITDA divided by revenue.
Safety and Environment
For the three months ended
9/30/22
12/31/22
For the years ended
12/31/22
12/31/21
0
0
0.47
2
0.48
1.21
2
0.12
0.98
2
0.14
1.22
0
0
0
0
LTI
LTIFR8
TRIFR8
Class 19
environmental
incidents
Unfortunately, on December 22, 2022, an incident occurred at Kibali
which resulted in the tragic fatality of an employee. Fatality incident
investigations are underway. Please refer to page 68 for further details.
Financial Results
Q4 2022 compared to Q3 2022
Kibali’s income for the fourth quarter of 2022 was 84% lower than the
prior quarter as a result of higher cost of sales per ounce7, partially
offset by higher sales volume.
Gold production for the fourth quarter of 2022 was 17% higher
than the prior quarter, due to higher tonnes and grade processed.
Cost of sales per ounce7 for the fourth quarter of 2022 was 50%
higher than the prior quarter due to higher depreciation expense. Total
cash costs per ounce6 were 16% lower than the prior quarter, following
improved grades from the open pit and underground. All-in sustaining
costs per ounce6 for the fourth quarter of 2022 ended 12% higher
than the prior quarter, mainly due to higher minesite sustaining capital
expenditures6, partially offset by lower total cash costs per ounce6.
Capital expenditures for the fourth quarter of 2022 were 94%
higher than the prior quarter, driven by the cyanide recovery plant
project, initial deposits on the replacement of the underground mining
fleet, as well as higher underground development.
2022 compared to 2021
Kibali’s income for 2022 was 49% lower than the prior year due to
lower sales volume and a higher cost of sales per ounce7.
89
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS INCOME AND EBITDA6
COST OF SALES7, TOTAL CASH COSTS6
AND ALL-IN SUSTAINING COSTS6 ($ per ounce)
450
300
150
0
1,770
1,799
1,800
418
419
244
278
320
142
1,200
1,000
800
600
400
200
0
1,016
818
627
1,243
948
703
1,080
to
1,160
880
to
960
710
to
770
2020
2021
2022
Cost of Sales
Total Cash Costs
AISC
2021
2022
2023 (est)a
Income ($ millions)
Gold Market Price ($/oz)
EBITDA ($ millions)
Gold production in 2022 was 8% lower compared to the prior year,
mainly due to lower grades processed and a slightly lower recovery
following a transition to relatively lower grade open pits as per the
mine plan.
PRODUCTION
(thousands of ounces)
400
200
0
366
337
320
to
360
2021
2022
2023 (est)a
a. Based on the midpoint of the guidance range.
Cost of sales per ounce7 in 2022 increased by 22% compared to the
prior year due to higher depreciation expense and higher total cash
costs per ounce6. Total cash costs per ounce6 were 12% higher,
mainly due to higher input costs driven by higher energy prices, as
well as lower grades processed as described above. For 2022, all-in
sustaining costs per ounce6 was 16% higher compared to the prior
year, reflecting higher total cash costs per ounce6 and higher minesite
sustaining capital expenditures6.
a. Based on the midpoint of the guidance range.
Capital expenditures in 2022 were 31% higher compared to the prior
year, due to higher minesite sustaining capital expenditures6 driven by
the cyanide recovery plant project, combined with increased project
capital expenditures6 related to the start of development of Lode
11000 and our investment in the Oere and Kalimva/Ikamva open pit
projects that are expected to underpin future production in our life of
mine plan.
2022 compared to Guidance
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
337
1,243
703
948
340 – 380
990 – 1,070
600 – 660
800 – 880
Gold production in 2022 fell slightly below the low end of the guidance
range due to lower than expected grades. All cost metrics were above
the guidance ranges as a result of lower production and sales volumes,
as well as higher input costs driven by consumable and energy prices.
90
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Veladero (50% basis)a, Argentina
SUMMARY OF OPERATING AND FINANCIAL DATA
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
Open pit tonnes mined (000s)
Open pit ore
Open pit waste
Average grade (grams/tonne)
Open pit mined
Processed
Heap leach ore tonnes processed (000s)
Gold produced (000s oz)
Gold sold (000s oz)
Revenue ($ millions)
Cost of sales ($ millions)
Income (loss) ($ millions)
EBITDA ($ millions)b
EBITDA marginc
Capital expenditures ($ millions)
Minesite sustainingb
Projectb
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
All-in costs ($/oz)b
8,544
3,522
5,022
0.60
0.61
3,659
50
53
95
122
(34)
13
14%
39
29
10
2,309
954
1,526
1,731
6,505
3,685
2,820
0.72
0.72
3,676
41
44
75
63
12
35
47%
32
27
5
1,430
893
1,570
1,659
31%
(4%)
78%
(17%)
(15%)
0%
22%
20%
27%
94%
(383%)
(63%)
(70%)
22%
7%
100%
61%
7%
(3%)
4%
30,233
12,464
17,769
0.73
0.68
37,787
10,629
27,158
0.77
0.77
14,222
11,114
195
199
365
325
32
152
42%
153
120
33
1,628
890
1,528
1,695
172
206
382
262
118
203
53%
142
136
6
1,256
816
1,493
1,520
(20%)
17%
(35%)
(5%)
(12%)
28%
13%
(3%)
(4%)
24%
(73%)
(25%)
(21%)
8%
(12%)
450%
30%
9%
2%
12%
29,108
13,678
15,430
0.78
0.84
12,017
226
186
333
213
114
183
55%
113
98
15
1,151
748
1,308
1,390
a. Barrick owns 50% of Veladero with our joint venture partner, Shandong Gold, owning the remaining 50%. Veladero is proportionately consolidated on the basis that
the joint venture partners that have joint control have rights to the assets and obligations for the liabilities relating to the arrangement. The figures presented in this
table and the discussion that follows are based on our 50% interest in Veladero inclusive of the impact of remeasurement of our interest in Veladero following the
disposal of a 50% interest on June 30, 2017.
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. Represents EBITDA divided by revenue.
Safety and Environment
For the three months ended
9/30/22
12/31/22
For the years ended
12/31/22
12/31/21
0
0.31
0.62
0
0.00
1.01
3
0.08
0.38
3
0.28
0.48
0
0
0
0
LTI
LTIFR8
TRIFR8
Class 19
environmental
incidents
Minera Andina del Sol SRL, the joint venture company that operates the
Veladero mine, is the subject of various regulatory proceedings related
to operational incidents occurring in March 2017, September 2016
and September 2015. Refer to note 35 to the Financial Statements for
more information regarding these and related matters.
Financial Results
Q4 2022 compared to Q3 2022
Veladero’s income for the fourth quarter of 2022 was 383% lower than
the third quarter of 2022, primarily due to a higher cost of sales per
ounce7, partially offset by higher sales volume.
Gold production in the fourth quarter of 2022 was 22% higher
following the sub-zero weather conditions in the prior quarter, as well
as leaching of Phases 1 to 5.
Cost of sales per ounce7 in the fourth quarter of 2022 increased
by 61% mainly due to a net realizable value impairment of leach pad
inventory of $42 million. Total cash costs per ounce6 increased by 7%,
mainly due to a combination of higher open pit mining activity resulting
in increased maintenance, as well as higher consumable costs.
This was partially offset by higher production volumes and higher
capitalized stripping. In the fourth quarter of 2022, all-in sustaining
costs per ounce6 was 3% lower than the prior quarter, primarily
attributable to lower sustaining capital expenditures6 on a per ounce
basis, partially offset by higher total cash costs per ounce6.
Capital expenditures in the fourth quarter of 2022 increased by
22% compared to the prior quarter due to higher project capital
expenditures6 reflecting the commencement of construction of
Phase 7A of the leach pad expansion after the winter season. This
was combined with a slight increase in minesite sustaining capital
expenditures6 resulting from higher capitalized stripping.
2022 compared to 2021
Veladero’s income for 2022 was 73% lower than the prior year, primarily
due to a higher cost of sales per ounce7 and lower sales volume.
91
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
INCOME AND EBITDA6
COST OF SALES7, TOTAL CASH COSTS6
AND ALL-IN SUSTAINING COSTS6 ($ per ounce)
250
125
0
1,770
1,799
1,800
183
203
114
118
152
32
2020
2021
2022
Income ($ millions)
Gold Market Price ($/oz)
EBITDA ($ millions)
In 2022, gold production increased by 13% compared to the prior
year, primarily due to the continuing ramp-up of the Phase 6 leach pad
in 2022. As previously disclosed, heap leach processing operations at
Veladero were reduced through the first half of 2021 while the mine
transitioned to Phase 6. Gold sales were 3% lower than the prior year
as we continued to actively manage the timing of sales to minimize our
exposure to local currency devaluation.
PRODUCTION
(thousands of ounces)
300
150
0
172
195
160
to
180
2021
2022
2023 (est)a
In 2022, cost of sales per ounce7 and total cash costs per ounce6
increased by 30% and 9%, respectively, compared to the prior year,
mainly due to higher input costs from energy prices and higher labor
and contractor expenses related to significant inflationary pressures,
coupled with ongoing strict Argentine foreign exchange controls.
Cost of sales per ounce7 was further impacted by higher depreciation
expense and a net realizable value impairment of leach pad inventory
of $42 million recorded in the fourth quarter of 2022. All-in sustaining
costs per ounce6 in 2022 increased by 2% compared to the prior year,
primarily due to the impact of higher total cash costs per ounce6,
partially offset by lower sustaining capital expenditures6.
1,493
1,256
1,628
1,528
816
890
1,630
to
1,710
1,550
to
1,630
1,060
to
1,120
1,800
1,500
1,200
900
600
300
0
2021
2022
2023 (est)a
Cost of Sales
Total Cash Costs
AISC
a. Based on the midpoint of the guidance range.
In 2022, capital expenditures increased by 8% compared to the prior
year, mainly due to higher project capital expenditures6 related to
the Phase 7A leach pad expansion. This was partially offset by lower
minesite sustaining capital expenditures6 following the completion of
the Phase 6 leach pad expansion in 2021.
2022 compared to Guidance
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
195
1,628
890
1,528
220 – 240
1,210 – 1,290
740 – 800
1,270 – 1,350
Gold production in 2022 was below the guidance range due to
lower recoveries from the leach pad. All cost metrics were above the
guidance ranges mainly due to the impact of lower than expected
sales volumes and higher input costs, primarily driven by energy and
labor related inflationary pressures coupled with the ongoing currency
restrictions as described below.
Regulatory matters
On September 1, 2019, the Argentine government issued Decree
609/2019 announcing currency restrictions in Argentina. Subsequently,
the Central Bank of Argentina issued Communication “A” 6770
complementing this decree. As a result, all export proceeds are
required to be converted into Argentine pesos at the official Central
Bank exchange rate. In addition, dividend distributions and payments
to foreign suppliers require specific authorizations from the Central
Bank. These currency restrictions have negatively impacted the cost
profile at Veladero. We continue to optimize the timing of our gold
sales to minimize our exposure to currency devaluation. Discussions
continue with the Central Bank on our rights to repatriate profits.
Separately, on October 2, 2020, the Argentine government issued
Decree 785/2020 that established the rate for mining export duties
at 8%. On December 31, 2021, this decree was extended until
December 31, 2023.
92
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS North Mara (84% basis)a, Tanzania
SUMMARY OF OPERATING AND FINANCIAL DATA
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
Total tonnes mined (000s)
Open pit ore
Open pit waste
Underground
Average grade (grams/tonne)
Open pit mined
Underground mined
Processed
Ore tonnes processed (000s)
Recovery rate
Gold produced (000s oz)
Gold sold (000s oz)
Revenue ($ millions)
Cost of sales ($ millions)
Income ($ millions)
EBITDA ($ millions)b
EBITDA marginc
Capital expenditures ($ millions)
Minesite sustainingb
Projectb
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
All-in costs ($/oz)b
3,493
1,117
1,992
384
2.00
3.54
3.37
717
92%
70
70
123
72
25
43
2,188
1,445
319
424
1.80
3.23
3.23
739
92%
71
70
121
67
39
54
35%
45%
51
36
15
1,030
758
1,301
1,519
27
14
13
956
737
951
1,149
60%
(23%)
524%
(9%)
11%
10%
4%
(3%)
0%
(1%)
0%
2%
7%
(36%)
(20%)
(22%)
89%
157%
15%
8%
3%
37%
32%
8,882
4,379
3,035
1,468
1.94
4.07
3.31
2,730
91%
263
265
479
259
177
238
50%
130
68
62
979
741
1,028
1,265
1,603
116
160
1,327
1.63
5.58
3.30
2,703
90%
260
257
463
248
214
261
56%
79
52
27
966
777
1,001
1,105
454%
3,675%
1,797%
11%
19%
(27%)
0%
1%
1%
1%
3%
3%
4%
(17%)
(9%)
(11%)
65%
31%
130%
1%
(5%)
3%
14%
3,758
1,484
1,197
1,077
2.14
6.19
3.45
2,546
92%
261
269
480
267
214
290
60%
87
57
30
992
702
929
1,039
a. Barrick owns 84% of North Mara, with the GoT owning 16%. North Mara is accounted for as a subsidiary with a 16% non-controlling interest on the basis that
Barrick controls the asset. The results in the table and the discussion that follows are based on our 84% share.
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. Represents EBITDA divided by revenue.
Safety and Environment
For the three months ended
9/30/22
12/31/22
For the years ended
12/31/22
12/31/21
0
0.00
0.85
1
0.46
1.39
2
0.24
0.95
1
0.13
0.90
0
0
0
0
LTI
LTIFR8
TRIFR8
Class 19
environmental
incidents
Financial Results
Q4 2022 compared to Q3 2022
North Mara’s income for the fourth quarter of 2022 was 36% lower than
the prior quarter mainly due to a non-recurring supplies obsolescence
charge. This was further impacted by a higher cost of sales per ounce7.
In the fourth quarter of 2022, gold production was in line with
the prior quarter. We continued to see higher tonnes mined and cost
reductions at our open pit operations with a sequential decrease in per
tonne mining costs versus the prior quarter, following the successful
transition to an owner miner operation earlier in 2022.
Cost of sales per ounce7 and total cash costs per ounce6 in the
fourth quarter of 2022 were 8% and 3% higher, respectively, than
the prior quarter, as we fed additional underground stockpiles to the
mill, in line with our mine plan, combined with increased investment
in community spend. This was partially offset by the improved open
pit mining performance that focused on waste stripping at the Gena
pit to support a strong start to 2023. Looking ahead, we commenced
preparatory work at the Gena pit with mining of ore scheduled to
begin in the first quarter of 2023. Cost of sales per ounce7 was further
impacted by higher depreciation expense. All-in sustaining costs per
ounce6 in the fourth quarter of 2022 was 37% higher than the prior
quarter as a result of higher minesite sustaining capital expenditures6,
combined with higher total cash costs per ounce6.
Capital expenditures in the fourth quarter of 2022 were 89%
higher than the third quarter of 2022, driven by higher minesite
sustaining capital expenditures6 mainly due to the procurement of key
underground equipment in line with our automation and optimization
plans. This was combined with higher project capital expenditures6
predominantly relating to the ramp-up of open pit operations.
2022 compared to 2021
North Mara’s income for 2022 was 17% lower than the prior year
mainly due to the non-recurring supplies obsolescence charge as
described above. This was further impacted by a marginally higher
cost of sales per ounce7, partially offset by higher gold sales volumes.
93
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS INCOME AND EBITDA6
300
1,770
290
1,799
1,800
200
214
214
261
238
177
100
0
2020
2021
2022
Income ($ millions)
Gold Market Price ($/oz)
EBITDA ($ millions)
In 2022, gold production was 1% higher than the prior year as the
investment in our open pit operations has delivered improvements
in plant recovery, as well as tonnes and grades processed. The
continued investment in our fleet replacement and an improvement
in underground mining efficiency resulted in the second consecutive
record year of underground tonnes mined. This also marks the second
consecutive year when we have delivered improved mill throughput
driven by our investment in the underground operations and the
successful ramp-up of our open pit mining.
PRODUCTION
(thousands of ounces)
COST OF SALES7, TOTAL CASH COSTS6
AND ALL-IN SUSTAINING COSTS6 ($ per ounce)
966 1,001
777
1,028
979
741
1,120
to
1,200
1,240
to
1,320
900
to
960
1,200
900
600
300
0
2021
2022
2023 (est)a
Cost of Sales
Total Cash Costs
AISC
a. Based on the midpoint of the guidance range.
In 2022, capital expenditures increased by 65% compared to the
prior year mainly due to higher project capital expenditures6 relating
to the ramp-up of open pit operations. This was combined with higher
minesite sustaining capital expenditures6 relating to the investment in
the open pit mining fleet and the construction of a new paste backfill
plant in the underground.
2022 compared to Guidance
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
263
979
741
230 – 260
820 – 900
670 – 730
1,028
930 – 1,010
260
263
230
to
260
Gold production in 2022 was higher than the guidance range. All cost
metrics were above the guidance ranges, reflecting higher input costs
driven by consumable and energy prices.
300
150
0
2021
2022
2023 (est)a
a. Based on the midpoint of the guidance range.
Cost of sales per ounce7 in 2022 was 1% higher than the prior year
due to higher depreciation, partially offset by lower total cash costs per
ounce6. The reduction in total cash costs per ounce6 of 5% followed
the continued ramp-up of both open pit and underground operations,
as well as improved mill throughput, higher grades processed and
higher recovery. All-in sustaining costs per ounce6 was 3% higher
than the prior year, primarily due to higher minesite sustaining capital
expenditures6, partially offset by lower total cash costs per ounce6.
94
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Bulyanhulu (84% basis)a, Tanzania
SUMMARY OF OPERATING AND FINANCIAL DATA
Underground tonnes mined (000s)
290
262
11%
1,029
730
41%
83
For the three months ended
For the years ended
12/31/22
9/30/22
Change
12/31/22
12/31/21
Change
12/31/20
Average grade (grams/tonne)
Underground mined
Processed
Ore tonnes processed (000s)
Recovery rate
Gold produced (000s oz)
Gold sold (000s oz)
Revenue ($ millions)
Cost of sales ($ millions)
Income ($ millions)
EBITDA ($ millions)b
EBITDA marginc
Capital expenditures ($ millions)
Minesite sustainingb
Projectb
Cost of sales ($/oz)
Total cash costs ($/oz)b
All-in sustaining costs ($/oz)b
All-in costs ($/oz)b
7.07
7.19
223
94%
49
49
91
60
13
25
7.86
7.64
211
94%
48
50
89
62
27
39
27%
44%
29
23
6
1,237
896
1,401
1,536
18
13
5
1,229
898
1,170
1,263
(10%)
(6%)
6%
0%
2%
(2%)
2%
(3%)
(52%)
(36%)
(39%)
61%
77%
20%
1%
0%
20%
22%
7.89
7.78
837
94%
196
205
389
248
118
168
9.23
8.95
661
93%
178
166
303
179
122
170
43%
56%
81
56
25
1,211
868
1,156
1,278
70
29
41
1,079
709
891
1,138
(15%)
(13%)
27%
1%
10%
23%
28%
39%
(3%)
(1%)
(23%)
16%
93%
(39%)
12%
22%
30%
12%
8.81
1.35
1,618
62%
44
103
202
154
27
87
43%
64
6
58
1,499
832
895
1,459
a. Barrick owns 84% of Bulyanhulu, with the GoT owning 16%. Bulyanhulu is accounted for as a subsidiary with a 16% non-controlling interest on the basis that
Barrick controls the asset. The results in the table and the discussion that follows are based on our 84% share.
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. Represents EBITDA divided by revenue.
Safety and Environment
For the three months ended
9/30/22
12/31/22
For the years ended
12/31/22
12/31/21
2
1.20
1.20
1
0.60
3.00
4
0.60
1.64
4
0.72
2.90
0
0
0
0
LTI
LTIFR8
TRIFR8
Class 19
environmental
incidents
Financial Results
Q4 2022 compared to Q3 2022
Bulyanhulu’s income for the fourth quarter of 2022 was 52% lower than
the prior quarter mainly due to a non-recurring supplies obsolescence
charge. This was further impacted by slightly lower sales volume and
slightly higher cost of sales per ounce7.
In the fourth quarter of 2022, gold production was 2% higher than
the prior quarter, primarily reflecting improved throughput, partially
offset by lower grades.
Cost of sales per ounce7 in the fourth quarter of 2022 increased
slightly by 1% due to higher depreciation expense related to the
underground ramp-up, while total cash costs per ounce6 were in line
with the prior quarter. All-in sustaining costs per ounce6 in the fourth
quarter of 2022 was 20% higher than the prior quarter, mainly as a
result of higher minesite sustaining capital expenditures6.
Capital expenditures in the fourth quarter of 2022 were 61%
higher than the prior quarter, mainly due to increased minesite
sustaining capital expenditures6 related to the acquisition of additional
underground fleet equipment as well as deposits on equipment orders
for 2023, combined with the prioritization of underground development
as per our mine plan.
2022 compared to 2021
Bulyanhulu’s income for 2022 was 3% lower than the prior year,
primarily due to the non-recurring supplies obsolescence charge as
described above, and a higher cost of sales per ounce7. This was
partially offset by higher sales volumes.
95
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS INCOME AND EBITDA6
COST OF SALES7, TOTAL CASH COSTS6
AND ALL-IN SUSTAINING COSTS6 ($ per ounce)
150
100
50
0
1,770
87
27
2020
1,799
170
1,800
168
122
118
2021
2022
1,200
800
400
0
1,079
891
709
1,211
1,156
868
1,230
to
1,310
1,160
to
1,240
880
to
940
Income ($ millions)
Gold Market Price ($/oz)
2021
2022
2023 (est)a
EBITDA ($ millions)
Cost of Sales
Total Cash Costs
AISC
In 2022, gold production was 10% higher than the prior year due to
the successful ramp-up of the underground mining and processing
operations, which was completed in the fourth quarter of 2021.
Accordingly, higher tonnes were mined and processed in 2022 as the
mine was in the ramp-up phase during the prior year.
PRODUCTION
(thousands of ounces)
178
196
160
to
190
200
100
0
2021
2022
2023 (est)a
a. Based on the midpoint of the guidance range.
Cost of sales per ounce7 and total cash costs per ounce6 in 2022
were 12% and 22% higher, respectively, than the prior year, mainly
due to higher input costs driven by consumable and energy prices
as well as the impact of higher throughput. All-in sustaining costs per
ounce6 was 30% higher than the prior year due to increased total cash
costs per ounce6 and the impact of higher minesite sustaining capital
expenditures6.
a. Based on the midpoint of the guidance range.
In 2022, capital expenditures increased by 16% compared to the prior
year, reflecting the higher minesite sustaining capital expenditures6
mainly from the commissioning of the new underground fleet, as well
as increased capitalized drilling. This was partially offset by lower
project capital expenditures6 following the successful ramp-up of
underground operations in the fourth quarter of 2021.
2022 compared to Guidance
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
196
1,211
868
1,156
180 – 210
950 – 1,030
630 – 690
850 – 930
Gold production in 2022 was slightly above the midpoint of the
guidance range. All cost metrics were higher than the guidance ranges
due to higher input costs driven by consumable and energy prices,
combined with an update to the mine plan based on a new geological
block model.
96
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
Other Mines – Gold
SUMMARY OF OPERATING AND FINANCIAL DATA
For the three months ended
Gold
produced
(000s oz)
Cost of
sales
($/oz)
63
38
–
1,381
1,451
–
12/31/22
Total
cash
costs
($/oz)a
1,070
1,227
–
All-in
sustaining
costs
($/oz)a
1,404
1,557
–
Capital
Expend-
ituresb
Gold
produced
(000s oz)
Cost of
sales
($/oz)
18
12
–
41
28
–
1,744
1,670
–
9/30/22
Total
cash
costs
($/oz)a
1,462
1,446
–
All-in
sustaining
costs
($/oz)a
Capital
Expend-
ituresb
1,607
1,865
–
5
9
–
Tongon (89.7%)
Hemlo
Porgerac (47.5%)
a. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
b. Includes both minesite sustaining and project capital expenditures. Further information on these non-GAAP financial measures, including detailed reconciliations,
is included on pages 114–140 of this MD&A.
c. As Porgera has been on care and maintenance since April 25, 2020, no operating data or per ounce data is provided.
Tongon (89.7% basis), Côte d’Ivoire
As expected and previously guided, gold production for Tongon in the
fourth quarter of 2022 was 54% higher than the prior quarter, reflecting
higher grades, throughput and recoveries. Cost of sales per ounce7
in the fourth quarter of 2022 was 21% lower than the prior quarter
due to lower total cash costs per ounce6, partially offset by higher
depreciation expense. Total cash costs per ounce6 were 27% lower
than the prior quarter, primarily due to higher grades processed. All-in
sustaining costs per ounce6 in the fourth quarter of 2022 were 13%
lower than the prior quarter, due to lower total cash costs per ounce6,
partially offset by higher minesite sustaining capital expenditures6.
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
180
1,748
1,396
1,592
170 – 200
1,700 – 1,780
1,220 – 1,280
1,400 – 1,480
Gold production for the full year 2022 was within the guidance range,
as was cost of sales per ounce7. Total cash costs per ounce6 and
all-in sustaining costs per ounce6 were both above the guidance
ranges driven by lower than expected grades and recoveries and the
impact of higher input costs, primarily driven by increased energy and
consumable prices.
Hemlo, Ontario, Canada
Hemlo’s gold production in the fourth quarter of 2022 was 36% higher
than the prior quarter, primarily due to higher grades and higher
ore tonnes mined due to improved underground performance. Cost
of sales per ounce7 and total cash costs per ounce6 in the fourth
quarter of 2022 were 13% and 15% lower, respectively, than the
prior quarter due to the impact of improved production performance.
All-in sustaining costs per ounce6 decreased by 17% compared to
the prior quarter, primarily due to lower minesite sustaining capital
expenditures6 on a per ounce basis and lower total cash costs per
ounce6.
Gold produced (000s oz)
Cost of sales7 ($/oz)
Total cash costs6 ($/oz)
All-in sustaining costs6 ($/oz)
2022 Actual
2022 Guidance
133
1,628
1,409
1,788
160-180
1,340-1,420
1,140-1,200
1,510-1,590
As expected and previously disclosed, gold production in 2022 was
below the guidance range, which was due to the temporary water
inflow that occurred late in the second quarter of 2022 and impacted
mining productivity into the third quarter of 2022. All cost metrics were
higher than guidance mainly due to the impact of lower than expected
sales volumes which reflected the disruptions described above, as
well as higher input costs driven by energy and consumable prices.
Porgera (47.5% basis), Papua New Guinea
On April 9, 2021, BNL signed a binding Framework Agreement with
PNG and Kumul Minerals, a state-owned mining company, setting
out the terms and conditions for the reopening of the Porgera mine.
On February 3, 2022, the Framework Agreement was replaced by the
Commencement Agreement. The Commencement Agreement was
signed by PNG, Kumul Minerals, BNL and its affiliate Porgera (Jersey)
Limited on October 15, 2021, and it became effective on February 3,
2022, following signature by MRE, the holder of the remaining 5% of the
original Porgera joint venture. The Commencement Agreement reflects
the commercial terms previously agreed to under the Framework
Agreement, namely that PNG stakeholders will receive a 51% equity
stake in the Porgera mine, with the remaining 49% to be held by
BNL or an affiliate. BNL is jointly owned on a 50/50 basis by Barrick
and Zijin Mining Group. Accordingly, following the implementation of
the Commencement Agreement, Barrick’s current 47.5% interest in
the Porgera mine is expected to be reduced to a 24.5% interest as
reflected in Barrick’s reserve and resource estimates for Porgera. BNL
will retain operatorship of the mine. The Commencement Agreement
also provides that PNG stakeholders and BNL and its affiliates will share
the economic benefits derived from the reopened Porgera mine on a
53% and 47% basis over the remaining life of mine, respectively, and
that the Government of PNG will retain the option to acquire BNL’s or
its affiliate’s 49% equity participation at fair market value after 10 years.
On April 21, 2022, the PNG National Parliament passed legislation
to provide, among other things, certain agreed tax exemptions and tax
stability for the new Porgera joint venture. This legislation was certified
on May 30, 2022, and will come into effect following a public notice
process under PNG law.
On September 13, 2022, the Shareholders’ Agreement for
the new Porgera joint venture company was executed by Porgera
(Jersey) Limited, which is an affiliate of BNL, the state-owned Kumul
Minerals (Porgera) Limited and MRE (a previous version of the
Shareholders’ Agreement had been signed by the BNL and Kumul
parties in April 2022 but was not signed by MRE and therefore did not
take effect). The new Porgera joint venture company was incorporated
on September 22, 2022, and this entity will next apply for a new SML,
the receipt of which is a condition of the reopening of the Porgera mine
under the Commencement Agreement.
The provisions of the Commencement Agreement will be fully
implemented, and work to recommence full mine operations at
Porgera will begin, following the execution of the remaining definitive
agreements and satisfaction of a number of conditions. These include
an Operatorship Agreement pursuant to which BNL will operate the
Porgera mine, as well as a Mine Development Contract to accompany
the new SML that the new Porgera joint venture company will apply for.
Under the terms of the Commencement Agreement, BNL will remain in
possession of the site and maintain the mine on care and maintenance.
Porgera was excluded from our 2022 guidance and will also
be excluded from our 2023 guidance. We expect to update our
guidance following both the execution of all of the definitive
agreements to implement the binding Commencement Agreement
and the finalization of a timeline for the resumption of full mine
operations. Refer to notes 21 and 35 to the Financial Statements for
more information.
97
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
Other Mines – Copper
SUMMARY OF OPERATING AND FINANCIAL DATA
12/31/22
9/30/22
For the three months ended
Copper
production
(millions of
pounds)
Cost of
sales
($/lb)
C1 cash
costs
($/lb)a
All-in
sustaining
costs
($/lb)a
Capital
Expend-
ituresb
Copper
production
(millions of
pounds)
Cost of
sales
($/lb)
C1 cash
costs
($/lb)a
All-in
sustaining
costs
($/lb)a
Capital
Expend-
ituresb
Lumwana
Zaldívar (50%)
Jabal Sayid (50%)
53
25
18
3.56
3.55
1.72
2.34
2.69
1.42
4.86
3.60
1.54
163
22
7
82
23
18
2.19
3.20
1.58
1.78
2.45
1.41
3.50
2.94
1.52
106
8
6
a. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
b. Includes both minesite sustaining and project capital expenditures. Further information on these non-GAAP financial measures, including detailed reconciliations,
is included on page 114–140 of this MD&A.
Lumwana, Zambia
As expected and previously guided, copper production for Lumwana
in the fourth quarter of 2022 was 35% lower compared to the prior
quarter, resulting from lower grades processed in line with the mine
plan and lower throughput following a planned shutdown of the mill for
maintenance. Cost of sales per pound7 and C1 cash costs per pound6
in the fourth quarter of 2022 were 63% and 31% higher, respectively,
than the prior quarter primarily due to higher maintenance expense
associated with the mill shutdown as well as lower grades and
tonnes processed. Cost of sales per pound7 was further impacted
by higher depreciation expense. In the fourth quarter of 2022, all-in
sustaining costs per pound6 increased by 39% compared to the prior
quarter, primarily due to higher C1 cash costs per pound6 and higher
minesite sustaining capital expenditures6 mainly related to new mining
equipment and securing construction assembly slots for the mobile
fleet in line with equipment replacement schedules.
Copper produced (M lbs)
Cost of sales7 ($/lb)
C1 cash costs6 ($/lb)
All-in sustaining costs6 ($/lb)
2022 Actual
2022 Guidance
267
2.42
1.89
3.63
250 – 280
2.20 – 2.50
1.60 – 1.80
3.10 – 3.40
Copper production for Lumwana in 2022 was in the upper half of the
guidance range. Cost of sales per pound7 was also within the guidance
range. C1 cash costs per pound6 was above the guidance range due
to higher input costs related to higher energy and consumable prices.
All-in sustaining costs per pound6 were above the guidance range
primarily due to increased capitalized stripping reflecting the same
input cost drivers as described above, as well as increased exploration
activity following the commencement of the pre-feasibility study for
the potential Super Pit expansion.
Zaldívar (50% basis), Chile
Copper production for Zaldívar in the fourth quarter of 2022 was 9%
higher than the prior quarter, mainly due to improvements in chloride
leach recoveries. Cost of sales per pound7 and C1 cash costs per
pound6 in the fourth quarter of 2022 were 11% and 10% higher,
respectively, than the prior quarter mainly due to a draw-down in
higher-cost stockpiled ore, which was processed in the fourth quarter
of 2022. All-in sustaining costs per pound6 increased by 22% compared
to the prior quarter, primarily due to higher minesite sustaining capital
expenditures6 due to the catch-up of delayed component replacement
work in the previous quarter.
Copper produced (M lbs)
Cost of sales7 ($/lb)
C1 cash costs6 ($/lb)
All-in sustaining costs6 ($/lb)
2022 Actual
2022 Guidance
98
3.12
2.36
2.95
100 – 120
2.70 – 3.00
2.00 – 2.20
2.50 – 2.80
Copper production in 2022 of 98 million pounds was slightly
below the guidance range, mainly due to limited heap leach stacking
availability and lower than expected chloride leach performance. All
cost metrics were above the guidance ranges mainly due to lower
production and sales volumes, higher energy and consumable prices,
as well as increased site maintenance costs.
Jabal Sayid (50% basis), Saudi Arabia
Jabal Sayid’s copper production in the fourth quarter of 2022 was in
line with the prior quarter. Cost of sales per pound7 in the fourth quarter
of 2022 were 9% higher mainly due to higher depreciation expense.
C1 cash costs per pound6 and all-in sustaining costs per pound6 were
both consistent with the prior quarter.
Copper produced (M lbs)
Cost of sales7 ($/lb)
C1 cash costs6 ($/lb)
All-in sustaining costs6 ($/lb)
2022 Actual
2022 Guidance
75
1.52
1.26
1.36
70 – 80
1.40 – 1.70
1.30 – 1.50
1.30 – 1.60
Copper production in 2022 was at the midpoint of the guidance range.
Cost of sales per pound7 and all-in sustaining costs per pound6 were
within the guidance ranges, while C1 cash costs per pound6 was
below the guidance range due to higher than expected by-product
credits as well as lower shipping rates achieved.
GROWTH PROJECT UPDATES
Goldrush Project, Nevada, USA
The FEIS was completed and all supporting material has been
combined into a NOA briefing package, which was submitted to the
State BLM in January 2023. After the State BLM review is complete,
the NOA briefing package will then progress to the Federal BLM for
review, ultimately leading to the NOA being published in the Federal
Register. This milestone will commence the public comment period for
the FEIS. We continue to expect the ROD to be issued by the end of
the first half of 2023.
Mine development and test stoping has continued in the Redhill
zone where dewatering of the orebody is not required. Development
also continues on exploration drifts above the Goldrush orebody to
facilitate future underground drilling platforms.
The headcount of Goldrush has ramped up through the course of
2022 and reached 80% by December 31, 2022. While good progress
has been made on recruiting mobile maintenance technicians,
recruitment of experienced miners remains a key focus.
As at December 31, 2022, project spend was $341 million on a
100% basis (including $11 million in the fourth quarter of 2022) on
the Goldrush project, inclusive of the exploration declines. This capital
spent to date, together with the remaining expected pre-production
capital (with planned commercial production now commencing in
2026), is anticipated to be within the approximate $1 billion initial
capital estimate for the Goldrush project (on a 100% basis).
98
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
Turquoise Ridge Third Shaft, Nevada, USA15
Commissioning of the Third Shaft at Turquoise Ridge was completed
in the fourth quarter of 2022. All three hoists, which have a hoisting
capacity of 5,500 tonnes per day, were handed over to operations for
production activities. Together with increased hoisting capacity, the
Third Shaft will provide additional ventilation for underground mining
operations as well as shorter haulage distances.
Final construction activities, including surface infrastructure will
conclude in the first half of 2023, but are not expected to impact the
production or hoisting capacity of the shaft. As such, this project will
no longer be separately reported in this section of the MD&A.
As at December 31, 2022, project spend was $273 million
(including $15 million in the fourth quarter of 2022). We now expect the
total project spend to be at the low end of the estimated capital cost
range of approximately $300-$330 million (100% basis).
NGM Solar Project, Nevada, USA
The TS Solar project is a 200 MW photovoltaic solar farm located
adjacent to NGM’s TS Power Plant and interconnected with the
existing plant transmission infrastructure. Upon completion, the
project will supply renewable energy to NGM’s operations and is
expected to realize 254kt of CO2 equivalent emissions reduction per
annum, equating to an 8% reduction from NGM’s 2018 baseline.
Accomplishments in the fourth quarter of 2022 were focused on
securing remaining long-lead materials and beginning construction.
Remaining key material contracts were awarded and down
payments issued to secure a delivery schedule. Site civil preparation
was initiated with contractor mobilization, site earthworks, and
substation foundation excavation. Contracts were awarded for
electrical installation, commissioning, and quality control testing.
Array engineering progressed to 90% complete for civil design and
60% complete for electrical design. In the first quarter of 2023, civil
earthworks will continue, foundation pile installation will begin, and
substation foundations will be completed in preparation to receive
critical electrical equipment.
As at December 31, 2022, project spend was $64 million (including
$20 million in the fourth quarter of 2022) out of an estimated capital
cost of $290-310 million (100% basis).
Pueblo Viejo Expansion, Dominican Republic14
The Pueblo Viejo plant expansion and mine life extension project is
designed to increase throughput to 14 million tonnes per annum,
allowing the operation to maintain minimum average annual gold
production of approximately 800,000 ounces after 2022 (100% basis).
Construction for the plant expansion is now 84% complete (up
from 70% as at September 30, 2022). Earthworks and civil concrete
works were 99% and 97% complete, respectively, at the end of the
fourth quarter of 2022. In addition, completion for steelwork has
advanced to 95% and mechanical installation to 87%. Piping and
electrical installation progressed to 60% and 37%, respectively.
Commissioning activities commenced in January 2023. During the
first quarter of 2023, we expect to process first ore and substantially
complete the commissioning of the new plant infrastructure.
The technical and social studies for additional tailings storage
capacity continued to advance. Barrick completed an ESIA on one of
the site alternatives, Naranjo, identified in both the Government and
Barrick alternative assessments in accordance with the Dominican
Republic’s terms of reference, which was submitted during the
fourth quarter of 2022. We continue to expect the Government of the
Dominican Republic’s decision on the ESIA during the first half of 2023.
Geotechnical drilling and site investigation are progressing as
planned, the engineering progressed and a pre-feasibility study was
completed during the fourth quarter of 2022. This allowed us to add
6.5 million ounces of attributable proven and probable reserves, net
of depletion, and extend the mine life beyond 204012,14. Drilling and
site investigation continues to allow for a feasibility level design by the
end of 2023.
As at December 31, 2022, total project spend was $828 million
(including $110 million in the fourth quarter of 2022) on a 100%
basis. As previously disclosed, the estimated capital cost of the
plant expansion and mine life extension project is now approximately
$2.1 billion (on a 100% basis), which incorporates the selected TSF
site submitted under the ESIA.
Veladero Phase 7 Leach Pad, Argentina
In November 2021, the Board of Minera Andina del Sol approved
the Phase 7A leach pad construction project with Phase 7B
subsequently approved in the third quarter of 2022. Construction on
both phases will include sub-drainage and monitoring, leak collection
and recirculation, impermeabilization, as well as pregnant leaching
solution collection. Additionally, the north channel will be extended
along the leach pad facility.
Construction of Phase 7A progressed well during the fourth
quarter of 2022, despite a prolonged winter season. Construction is
now 91% complete and more than 75% of the new construction area
is already being used for ore processing.
Construction of Phase 7B commenced during the fourth quarter
of 2022 and advanced to 9% by the end of the quarter. Given current
inflationary and currency restriction challenges in Argentina, we
have commenced a ramp-down of Phase 7B construction, since we
are ahead on the construction timeline and have sufficient stacking
capacity for 2023 and into the second half of 2024.
Overall, for Phase 7, as of December 31, 2022, project spend was
$89 million (including $21 million in the fourth quarter of 2022) out of
an estimated capital cost of $159 million (100% basis).
Veladero Power Transmission, Chile-Argentina
In 2019, we commenced construction of an extension to the existing
Pascua-Lama power transmission line to connect to Veladero to
enable the operation to convert to grid power exported from Chile and
cease operating the high-cost diesel generation power plant located
at site. A power purchase price agreement was executed during the
fourth quarter of 2019 to supply power from renewable energy that
is expected to reduce CO2 equivalent emissions by 100 kt per year,
translating to a significant reduction in Veladero’s carbon footprint. As
previously disclosed, we completed the construction of the Veladero
Power Transmission project for $54 million (100% basis).
In March 2022, a Chilean trial court issued injunctions which,
among other things, prohibited the administrative authority that
oversees electric projects in Chile (the Coordinador Eléctrico Nacional)
from completing the procedures required to energize the Veladero
Power Transmission project. In September 2022, Barrick’s Chilean
subsidiary that holds the Chilean portion of the Pascua-Lama project
and the plaintiff settled the dispute, and all injunctions have been lifted.
Separately, in November 2022, the Argentinian Secretary of
Energy ratified a favorable six-month renewable ENRE energization
and line operation permit resolution.
On December 21, 2022, the power infrastructure in Chile and
Argentina was successfully energized and the Veladero mine site has
since been operating using grid power. As such, this project will no
longer be separately reported in this section of the MD&A.
Loulo-Gounkoto Solar Project, Mali
The scope of this project is to design, supply and install a 40 MW (48 MW
peak) photovoltaic solar farm with a 36 MVA battery energy storage
system. Upon completion, we expect to realize a reduction of 23 million
liters of fuel, which translates to a saving of approximately 62 kt of
CO2 equivalent emissions per annum. The project is designed to be
implemented in two phases of 20 MW (24 MW peak) and 22 MVA battery
storage each, with commissioning by the end of 2023 and end of 2024,
respectively. Total project status is 47% complete (up from 32% as at
September 30, 2022), with Phase 1 ramming of piles near completion
and the first trackers being fitted with photovoltaic panels. Upfront
procurement of hardware has enabled work on Phase 2 to commence.
As at December 31, 2022, project spend was $34 million (including
$12 million in the fourth quarter of 2022) out of an expected capital
cost of approximately $90 million (100% basis).
99
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS Jabal Sayid Lode 1, Saudi Arabia
The scope of this project is to develop and extract a new orebody,
located less than a kilometer from the existing lode at Jabal Sayid,
following the completion of a feasibility study that comfortably meets
our investment criteria. The project design includes underground
capital development as well as ventilation, paste plant and underground
mining infrastructure upgrades with stoping to commence by mid 2023.
The project is 49% complete (up from 39% as at September 30, 2022)
with the raisebore development and equipping finished along with
the cyclone cluster installation. The circuit is stable and performing
well. A reagent plant and additional flotation cells installation will
provide flexibility in dealing with the higher zinc content from this
sulfide orebody.
As at December 31, 2022, project spend was $27 million (including
$7 million in the fourth quarter of 2022) out of an estimated capital cost
of approximately $40 million (100% basis).
Lumwana New Mobile Equipment, Zambia
During the fourth quarter of 2022, we began a transition to an owner
miner fleet at Lumwana following a study which concluded that this
option could result in a 20% cost reduction within the first five years
versus contracted services. Separately, an owner miner strategy
positions the operation well for future potential expansions including
the Super Pit, which has the potential to extend Lumwana’s life into
the 2060s.
With the transition, Lumwana will invest in a new fleet initially
dedicated to waste stripping. During 2022, we placed the initial
deposits on the owner miner fleet to secure production assembly
slots, with first delivery expected in the first quarter of 2023. This
owner miner transition is being executed concurrently with the Super
Pit pre-feasibility study, which also commenced in the fourth quarter
of 2022.
As at December 31, 2022, project spend was $27 million (all
in the fourth quarter of 2022) out of an estimated capital cost of
approximately $115 million.
EXPLORATION AND MINERAL
RESOURCE MANAGEMENT
The foundation of our exploration strategy is a deep organizational
understanding that discovery through exploration is a long-term
investment and the main value driver for the business – not a process.
Our exploration strategy has multiple elements that all need to be in
balance to deliver on Barrick’s business plan for growth and long-term
sustainability.
First, we seek to deliver projects of a short- to medium-term nature
that will drive improvements in mine plans. Second, we seek to make
new discoveries that add to Barrick’s Tier One Gold Asset1 portfolio.
Third, we work to optimize the value of our major undeveloped
projects and finally, we seek to identify emerging opportunities early in
their value chain and secure them by an earn-in or outright acquisition,
where appropriate.
During 2022, we made significant progress in our exploration
work across all regions, making a number of discoveries which are
still being evaluated. In Nevada, drilling on early-stage targets in
the Cortez, Carlin and Turquoise Ridge camps has confirmed the
presence of anomalous mineralization with alteration and structural
complexity under cover, which have the potential to vector us towards
new orebodies. We continue to intersect strong mineralization around
North Leeville as well as at Turf and Fourmile. We also expanded
beyond our existing ground holdings in Nevada with multiple option
agreements in both the United States and Canada. In Latin America,
we completed a restructuring of the exploration team while targets
in Peru, Dominican Republic and Argentina were re-prioritized with
ongoing work delivering strong early results from a historical target,
Morro Escondido, near Veladero in Argentina. In the Africa and Middle
East region, we have reported robust drill intersections in Senegal and
Mali around the Loulo-Gounkoto complex and have also identified
material upside around Tongon, Kibali, North Mara, Jabal Sayid and
Lumwana. We have a new team evaluating opportunities across
the Asia-Pacific region and through 2023 we will maintain a healthy
balance in our exploration focus between early-stage and advanced
exploration projects in order to deliver Barrick’s growth and long-term
business plan.
The following section summarizes the exploration results from the
fourth quarter of 2022.
North America
Carlin, Nevada, USA16, 17, 18, 19, 20
Drilling at North Leeville focused on expanding the mineral footprint
to the south and east along identified structures, infilling towards
the planned development in 2023. Core drilling along strike of
the previously reported NLX-22013b (27.4 meters, true width (TW)
26.3 meters, at 19.57 g/t Au) intersected sulfidized and altered
target lithologies within the Merlin corridor. Results are pending for
four core holes, but geological observations indicate the continued
expansion of the maiden inferred resource and this is expected to
continue through 2023.
At North Turf, reserve definition drilling the footwall to the
prospective Veld fault continued to return significant intercepts,
including 24.4 meters (TW 24.0 meters) at 6.79 g/t Au from NTC-22033
in the western exploration decline. From the eastern decline, drilling
intercepted a narrow, high-grade zone of mineralization of 5.0 meters
(TW 4.6 meters) at 12.10 g/t Au in NTC-22027, proximal to the NW-
trending Merlin fault, interpreted to control high-grade mineralization
over 700 meters away in NLX-22013b at North Leeville (as described
above). Drilling continues to further expand the reserves and resources
footprint beyond Turf and into North Leeville.
Further to the west in the Little Boulder Basin, drilling at the
Golden Egg target has intersected thick intervals of brecciation
with overprinting hydrothermal sulfide veins in drill hole LBB-22006.
While the assay results returned 40 meters of intermittent low-grade
mineralization, the presence of sulphides and gold mineralization
within a zone of strong brecciation is interpreted as a “near miss”
defining the eastern limit of the target. Drilling is planned to continue
into 2023 initially stepping out along the northeast trending corridor
which remains open more than a kilometer along strike.
At Ren, the 2022 drilling program added to the existing reserves
base and has also increased our understanding of the low-angle
controls on mineralization within the sheared package of the Devonian
Rodeo Creek, with results including 9.8 meters (TW 4.0 meters) at 5.01
g/t Au in MRC-22009. This upgrade in the model will inform our 2023
surface step-out exploration program aimed at extending the known
mineralization in the Corona Corridor further to the north and northeast.
Exploration drilling to the west of Goldstrike has significantly
expanded the potential along the East Bounding fault system. Two
framework holes drilled in the fourth quarter of 2022 tested this fertile
fault corridor over two kilometers along strike to the south of the
previous successful drilling at El Niño. Both drill holes encountered
strong alteration, structural complexity and breccia development with
widespread low-grade mineralization and thin intercepts of higher
grades up to 6.85 g/t Au (WSF-22003). The underexplored East
Bounding fault corridor extends for more than seven kilometers of
strike length and further wide spaced drilling is planned for 2023 to
test and target high-grade opportunities down-dip from outcropping
orebodies, which include Tara, Bootstrap and Arturo.
At the El Niño underground mine at Arturo, a five-hole program
was completed, with geological observations that support and expand
the newly identified mineral trend north of existing mining. Only one
result has been returned to date: SEC-22008 intercepted 20.4 meters
at 6.51 g/t in sheared and stacked lower Devonian Rodeo Creek, with
mineralization remaining open towards the north. A follow-up program
is planned for 2023.
100
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Cortez, Nevada, USA21, 22
In the fourth quarter of 2022, CHUG saw a step-change in the
geological understanding of the Hanson Footwall target. Following
encouraging results from the third quarter of 2022, remodeling and
subsequent drilling has yielded promising grades from a series of
stacked and repeating layers of Silurian Roberts Mountain formation.
Results to date include 24.7 meters at 6.67 g/t Au from CMX-22016
and 20.1 meters at 9.64 g/t Au from CMX-22019. Four results remain
pending for the year, but the results cover a strike length of 300 meters,
open to the northwest and southeast. Drilling in 2023 will infill this
framework program as well as extend the footprint below the existing
Cortez Hills underground infrastructure.
At the Robertson project, drilling continued to confirm geological
continuity between the Gold Pan and Porphyry targets. Results to
date include 4.6 meters at 3.28 g/t Au and 3.0 meters at 2.38 g/t Au
in PYC-21033, supporting near-surface continuity of mineralization
between the two deposits and ultimately, an increase in the resource
footprint. At the western extent of Robertson, in the Distal target,
results from previous drilling received in the fourth quarter of 2022
confirm the continuity of grade up-dip of the Distal Fault series and
nearer to surface in DTL-21007 with 12.0 meters at 2.17 g/t Au, and
13.9 meters at 15.57 g/t Au in DTL-21004. These results continue
to improve the resource potential, some 600 meters away from the
Gold Pan deposit. Infill and further exploration drilling is planned for
2023 at Distal. Maiden reserves and an increased resource were
declared as part of the 2022 Reserves and Resources Statement.
Fourmile, Nevada, USA23
At the Dorothy target, 800 meters north of the existing Fourmile
resource, two drillholes have successfully intersected the most
continuous zones of mineralization to date in the target area. Gold
mineralization is primarily hosted within a breccia, as seen in historic
drilling, but contains a much higher concentration of mineralized clasts
with more consistent sulfidation. These intercepts greatly increase
the potential at Dorothy as the mineralization observed is at a lower
horizon than previously tested in the target area and remains open in
all directions. Results from drill hole FM22-180D include 39.6 meters
at 12.71 g/t Au and 5.4 meters at 17.04 g/t Au. Hole FM22-179D
intersected similar brecciation with 31.7 meters at 33.67 g/t Au. Initial
follow-up drilling is planned to extend a historic hole which was not
drilled deep enough to test the new horizon.
Both holes also intersected shallower gold mineralization, along
the Sadler Fault, a key structural control within the Fourmile resource
to the south. FM22-179D returned 18.0 meters at 29.67 g/t Au and
FM22-180D returned 4.0 meters at 13.62 g/t Au. Together, these
intercepts are beginning to establish a thicker and more continuous
zone of mineralization along this key structure in the Dorothy area
as well.
Turquoise Ridge, Nevada, USA24
Fourth-quarter drilling and results at Turquoise Ridge continue to
define and upgrade our understanding of the mineral controls within
the BBT corridor and Getchell Fault Zone. Recent drilling continues
to upgrade resource numbers within the Getchell Zone, with results
including 10.0 meters (TW 9.2 meters) at 28.00 g/t Au in TUM-22813
and 10.1 meters (TW 8.7 meters) at 20.77 g/t Au in TUM-22816.
Similarly, drilling along the TR Corridor has highlighted significant
intercepts such as TUM-22219 (34.2 meters (TW 14.6 meters) at
12.93 g/t Au) approximately 300 meters along trend from TUM-22162
(34.8 meters (TW 15.2 meters) at 33.11 g/t Au). Infill drilling is planned
to test the undrilled continuity between these two high-grade holes
and potentially expand the resource here.
During the fourth quarter of 2022, results were received from
the reverse circulation scout drilling program in the Fenceline target
area, an alluvial material covered target straddling a legacy property
boundary between the Turquoise Ridge underground mine and the
Mega pit at Twin Creeks. The results from the program highlight a
corridor of deep oxidation, strong geochemistry and anomalous gold,
coincident with a window through the Roberts Mountains thrust fault.
Follow-up core drilling began in January 2023.
Work completed within the Mega Pit at Twin Creeks has
highlighted the potential for a high-grade, feeder type target at depth
below the deposit. Drilling has confirmed the presence of feeder
like alteration and mineralization on the extensions of primary ore
controlling structures below the elevation of historic drilling. At the
targeted elevation, historic drilling is very limited and deep framework
drilling is planned to define the geologic and structural setting along
the kilometer scale target area at depth.
Phoenix, Nevada, USA
At Phoenix, drilling immediately west and below the northern
Bonanza pit has identified a 65-meter-thick downhole (TW not yet
known) zone of intensely-veined and strongly-altered porphyry, with
visible chalcopyrite and pyrite in veinlets and disseminated within
the rockmass. Results for copper and gold assays are still pending,
but geological observations suggest the potential for a previously
unknown hypogene zone immediately beneath the existing (unmined)
resource pit. Follow-up drilling in 2023 will target the extension and
further our understanding of the potential for this zone.
Pearl String, Nevada, USA
The Pearl String property, located in the Walker Lane mineral belt of
western Nevada, was acquired through an exploration agreement with
the opportunity to earn a 100% interest from the underlying claim
holder. In addition to the acquired ground, Barrick staked a large claim
block around the property encompassing approximately 80 square
kilometers of prospective ground. The property consists of a volcanic-
hosted high sulfidation epithermal alteration system, outcropping to
the east and mostly concealed under post mineral pediment cover
to the west. There are small windows of altered and gold-bearing
volcanics exposed through this cover. Work to date on the property
has included geologic mapping, rock and soil sampling and collection
of gravity data to map the underlying basement rock. This data will be
compiled and interpreted in the first quarter of 2023, leading to target
delineation and framework drill testing.
Hemlo, Canada25
A detailed re-interpretation and re-build of the geological model and
resource estimation has been completed at Hemlo, better defining
the geological controls of the mineralization. This has reduced the
contained ounces and residual potential in the Lower B Zone while
improving growth targeting in the C and E Zones, where mineralization
remains open at depth. Model confirmation drilling continued at C
Zone Deep during the fourth quarter of 2022, aiming to extend the
mineralization down plunge. Results from this program received in the
fourth quarter of 2022 include 4.6 meters at 6.06 g/t Au in 90352207,
4.1 meters at 7.60 g/t Au in 90352208, 3.2 meters at 9.12 g/t Au in
90352209, 2.8 meters at 9.85 g/t Au and 2.6 meters at 6.78 g/t Au in
90352227 and 2.7 meters at 6.38 g/t Au in 90352229. Further drilling
also continued in Lower C Zone West, aiming to better define the
mineralization in the area. Results include 3.5 meters at 10.57 g/t Au in
drillhole 11522104 and 2.7 meters at 13.82 g/t Au in drillhole 1152295.
Final assays were received for the E Zone resource expansion drilling
completed in the third quarter of 2022, with results including 2.7 meters
at 10.74 g/t Au in W2230 and 6.5 meters at 4.40 g/t Au in W2231.1. All
these results confirm the updated model.
At the Pic Project to the west of Hemlo, a soil and till sampling and
mapping program was conducted over areas of historically identified
mineralization and new areas of interest. Approximately 6,600 meters
of available historic drill core was scanned using an advanced array
of sensors to measure spectral and compositional characteristics
and is currently being re-logged to provide context for historical
mineralization. More than 550 samples were collected in the northeast
area of the property. The results will be utilized to motivate drilling
planned for the summer and fall of 2023.
101
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS Uchi Belt, Canada
On the South Uchi Project, all results from the 2022 program were
received during the fourth quarter of 2022. 461 till samples and
1,065 surface rock samples were analyzed during the summer field
mapping and overburden drilling campaigns. The results have been
disappointing, ultimately leading to the termination of the earn-in
agreement with Kenorland Minerals.
Ground geophysics supported the target concept of the Atena-
Chispas, high-sulfidation target that sits immediately south of the
current Veladero Valley Leach Facility. A small proof-of-concept drill
program was designed and drilling was initiated prior to end-of-year,
and will continue into the first quarter of 2023.
Drilling of the Lama targets continued during the fourth quarter of
2022 with two drill rigs testing mineralization concepts at the Penelope
South and Porfiada targets.
Latin America & Asia-Pacific
Pueblo Viejo, Dominican Republic26, 27
Drilling at the Main Gate target in the third quarter of 2022 intersected
favorable hydrothermal alteration and mineralization below cover,
which identified a new target area close to the main Pueblo Viejo
deposit. The target remains open over several hundred meters along
a northwest trend towards the historical “ARD1” target. Drilling on this
trend is underway and will continue through the first half of 2023.
At the Arroyo del Rey target to the northeast of the Pueblo
Viejo deposits, the three-hole framework diamond drilling program
confirmed
the structurally-controlled, high-grade mineralization
previously identified at surface. DPV22-872 intercepted 1.85 meters
at 10.93 g/t Au from 143 meters associated with a northeast striking
structure. Further drilling to test the wider Arroyo del Rey target as
well as the deep extensions to the Cumba deposit are being planned.
To the east of the Mejita pit, at the Mejita Extension target, drillhole
DPV22-875 intercepted 5 meters at 1.68 g/t Au from 133.5 meters,
including 1.5 meters at 3.7 g/t Au without lateral continuity. This target
has been downgraded.
Regional Exploration, Dominican Republic
Three new exploration concessions covering a total area of 134 km2
were granted across the Dominican Republic, within three different
geological districts. At the recently granted La Laja project (located
40 kilometers west of Pueblo Viejo), a reconnaissance campaign
identified three areas of interest which feature encouraging indications
of hydrothermal alteration as well as gold and copper mineralization.
Follow-up field work to define the geological framework and
mineralization potential is planned for the first quarter of 2023.
Veladero District, Argentina28
A diamond drill program to validate legacy RC drilling results and to
improve the understanding of mineralization controls at the Morro
Escondido target began in the fourth quarter of 2022. Four completed
holes confirmed significant mineralization with intersections including
DDH-MES-02 with 128.0 meters at 0.75 g/t Au from surface, including
9.30 meters at 4.91 g/t Au from surface; DDH-MES-01 with 107.80
meters at 0.74 g/t Au from surface; DDH-MES-04 with 41.00 meters
at 1.64 g/t Au, including 4.00 meters at 8.27 g/t Au; and DDH-MES-03
with 75.5 meters at 0.52 g/t Au, including 19.50 meters at 1.04 g/t
Au from surface. Concurrently, a ground geophysical Controlled
Source Audio Magnetotelluric survey was completed, revealing a large
2.87-km2-high resistivity anomaly greater than >2,000 ohm per meter,
which is interpreted to represent silica alteration that is associated with
mineralization. Bottle roll test analysis on surface outcrop samples
yielded results showing the mineralization is potentially amenable for
blending with ore from Veladero and further tests are being carried out
on the new drill core. The system remains open in all directions and
drilling is ongoing.
Geological work continues on other high priority projects in the
district focusing on targets with the potential to impact Veladero’s
mine plan. At Domo Negro, in the Ortiga trend to the north of Morro
Escondido, further sampling in a high vein density area yielded
encouraging gold values defining a target with gold porphyry potential
at depth. At Cerro Lila, in the same trend, surface samples returned
encouraging gold values, defining a target area of 500 by 1,000 meters,
which is open and under cover to the east. At the Veladero Sur project,
field work defined two targets, one of which is a large Veladero-type
high-sulfidation system and one which has porphyry potential with a
high density of quartz veinlets and associated encouraging gold values.
A ground geophysical Controlled Source Audio Magnetotelluric survey
is planned for the first quarter of 2023, with diamond drilling to follow.
102
Cerro Bayo, Argentina
In Cerro Bayo prospect, detailed mapping and sampling confirmed
the northwest striking mineralized structures on the project. The
hydrothermal systems are preserved and close to the surface in
certain parts of the property. Surface samples yielded encouraging
gold results in northwest-striking veins.
Peru
At the Austral project, geological mapping, sampling, and ground
geophysical surveys were completed as part of the target delineation
program. Fieldwork across the project has defined two gold-bearing
targets which both feature strong gold results from outcrops and have
the potential to host a large deposit. RC drill testing is planned in 2023.
Porgera, Papua New Guinea
As discussed on page 63, Porgera is currently on temporary care and
maintenance and consequently, all exploration activities have ceased.
Japan Gold Strategic Alliance, Japan
Focused field activities were undertaken on four of the rationalized
nine projects in the portfolio, comprising prospect scale mapping, rock
chip sampling and geophysical surveys.
At the Mizobe project in Kyushu, interpretation of the induced
polarization survey was completed in the fourth quarter of 2022.
Combined with results from prior mapping and geochemical sampling,
this has resulted in three framework drill holes being planned. Drilling
will target the margins of a graben structure, interpreted as potential
fluid conduits, beneath late and post mineral volcanic and sedimentary
cover sequences. Drilling is currently being permitted.
On the Ebino project, also in Kyushu, an induced polarization
survey, prospect scale mapping and surface sampling was completed
over the Otsuka prospect. The prospect is defined by a large area of
argillic alteration localized over a fault bounded gravity anomaly along
the eastern margin of the Okuchi basin, a similar geological setting to
the Hishikari deposit located 12 kilometers to the south. Upon receipt
and integration of analytical results, follow-up work may be planned.
On the Aibetsu project, located in Hokkaido, prospect scale
mapping and rock chip sampling was completed over two areas of
interest, characterized by elevated low level gold and associated
pathfinder elements interpreted as leakage along low angle bedding
planes, with potential for a blind system proximal to first order feeder
structures. Geological observations and initial analytical results
support this conceptual model, and pending remaining results, next
steps may include geophysics and drill testing after the winter season.
Africa and Middle East
Senegal, Exploration29
On the Bambadji joint venture, at the Wari Target, diamond drilling is
underway testing a kilometer scale alteration and mineralized system
confirmed by first phase RC drilling in the third quarter of 2022 with
significant intercepts such as 14.0 meters at 2.71 g/t, including 7.0
meters at 4.96 g/t (WARC004). Initial geological observations are
encouraging, extending the alteration system down to 200 meter
vertical depth (results pending). Alteration and mineralization styles are
very similar to the Kabetea system, located 1.5 km to the south, where
wide high-grade intercepts have been reported. RC drilling is planned
to test the gap between the two targets and assess the potential of the
combined system.
On the Dalema joint venture, scout RC drilling commenced in early
2023 to test the first prioritized targets on the permit in the prospective
Faleme Domain. Meanwhile auger drilling, mapping and geophysics
will continue screening the remaining parts of the project to generate
additional opportunities.
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Target delineation programs have commenced on the recently
granted Bambadji South permit, where initial surface observations
have highlighted strongly altered and sulfidized rocks that correlate
with high tenor soil geochemistry anomalies; these targets will be
prioritized against other opportunities for testing in the first quarter
of 2023.
Loulo-Gounkoto, Mali30
At Gara West, two diamond holes were drilled beneath the pit, to
test a conceptual target controlled by a plunging fold axis related to
the adjacent Gara orebody. Observations confirmed the alteration
system and mineralization at 350 meters vertical depth, with a high-
grade intersection of 10.95 meters at 8.19 g/t, including 5.9 meters
at 12.63 g/t (GWDH02). These initial results support the potential for
a significant underground opportunity and will be a key focus area for
early 2023. Additionally, a review of the four-kilometer-long Gara West
trend, which has been tested with limited drilling, has been initiated to
identify further potential in a key prospective corridor.
Scout drilling at the Hippo and Yalea Ridge South targets
located south of the Yalea deposit, has confirmed a wide silica-albite
alteration corridor over 1.7 kilometer strike and returned localized
strong mineralized intercepts from one hole, hosted in brecciated
tourminalized sandstone: YRSAC0010 returned 10 meters at 10.05 g/t,
including 7 meters at 13.69 g/t, and 18 meters at 1.83 g/t. The tourmaline
breccia host appears to narrow to the south with only weak
intercepts reported
located
200 meters along strike. A full integration and model update for the
structural corridor is in progress to better understand the control on the
high-grade mineralization in the system and identify upside potential.
in the other shallow drill
fences
Tongon, Côte d’Ivoire31
The priority at Tongon continues to be progressing satellite targets
with the potential to extend the life of mine.
At Koro A2, results continue to demonstrate economic satellite
potential over 500 meters strike, with significant results in the fourth
quarter of 2022 including 10.00 meters at 2.49 g/t (KORC020), 12.00
meters at 2.28 g/t (KORC021) and 7.00 meters at 6.54 g/t (KORC028).
The system is open along strike in both directions and at depth with
further drilling planned in the first quarter of 2023.
At Jubula Main, encouraging
to define
mineralization on multiple sub-parallel structures 0.5 kilometers from
the Seydou North deposit. Best intersections include 13.41 meters at
2.74 g/t and 6.00 meters at 2.70 g/t (JBMDH002). Further analysis is
scheduled after receipt of full assay results and metallurgical test work
to define upside and economic potential.
results continue
At Seydou North, an update to the geological model incorporating
the latest drilling has successfully led to the extension of the
planned open pit and an increase to the resource. Mining operations
commenced at the end of 2022.
A review of the fertile Stabilo Trend is underway to identify new
high impact satellite opportunities along the over 5 km structure
hosting Seydou North and several additional prospects. Targets will
be prioritized prior to testing in the first quarter of 2023.
Kibali, Democratic Republic of Congo32
The remaining results have been received from the initial drill section
at Mengu Hill, designed to test for the continuity of high-grade
mineralization down-plunge of the previously mined open pit.
MDD079W1 returned a significant intercept of 7.82 meters at 11.19 g/t,
increasing the high-grade zone to 60 meters width, with mineralization
still open towards the southeast and down-plunge to the northeast.
Results of the first fence support the potential for a significant satellite
underground project. Additional drilling is planned in the first quarter
of 2023 to test the width of the mineralized shoot and the open down-
plunge extension.
Drilling at Gorumbwa, adjacent to the KCD deposit commenced
to test the underground potential below the historical pit. Initial results
are showing strong alteration and mineralization, supporting the
potential of an underground project and this work has better defined
and reduced the size of historic mining voids. Drilling will continue
down-plunge during early 2023.
At Oere, recent results from the deepest drillholes on the
target have returned the strongest intersections to date indicating
underground potential as well as highlighting conceptual potential
at depth along the KZ trend in similar settings where near-surface
results are weak. Significant results include: 8.1 meters at 11.6 g/t
(ORDD0031); 19.80 meters at 6.15 g/t (ORDD0057) and 16.90 meters
at 4.29 g/t (ORDD0043). The geological model is currently being
updated to place the high-grade results into context prior to planning
a program to assess the underground opportunity.
A scout RC program has been completed at Zambula, located
on the KZ South structure. The program was designed to assess
the most prospective segments of the sparsely tested shear zone
for large-scale near-surface satellite potential within 15 kilometers of
the Kibali mill with wide spaced drill fences. Consistent alteration and
mineralization over more than two kilometers strike length and down
to 150 meters vertical depth has been intersected with indications of
high grades within the system. Significant results include: 15 meters
at 2.13 g/t, including 5 meters at 4.61 g/t (ZBRC0009), 11 meters
at 2.68 g/t, including 5 meters at 4.33 g/t (ZBTR0010), 7 meters at
2.39 g/t, including 2 meters at 5.69 g/t (ZBRC0021). Results support
the potential for the structure to host a significant satellite deposit, a
follow-up program, including deeper diamond drilling, is planned for
the first quarter of 2023.
North Mara and Bulyanhulu, Tanzania
At North Mara, a framework drill program has commenced on
the Gokona West corridor; the first holes have intersected strong
‘Gokona style’ alteration and host rocks supporting the presence
of additional mineralized hydrothermal centers along the sparsely
tested prospective corridor, which is concealed beneath post-mineral
volcanic cover. Results are pending and the program will continue into
the first quarter of 2023.
The Gokona Deeps drilling program targeting extensions at
depth continued in the fourth quarter of 2022. Several drill holes
have intersected mineralization outside of the currently defined
mineralization wireframes, which are expected to support extensions
of mineral resources. Subsequent conversion drilling will be planned in
2023 based on the results.
At Bulyanhulu, an updated geological model was developed for
the northwest extension of the Bulyanhulu system. The new model
has highlighted several near mine targets and initial drill testing will
start early in 2023. In parallel, target delineation programs including
ground geophysics, have been completed over the northern permits of
the Bulyanhulu inlier. The new data will support the generation of the
next phase of targets to fill the base of the resource triangle with the
highest potential targets to be prioritized for drill testing early in 2023.
Egypt, Regional Exploration
In Egypt, the handover of Barrick’s third exploration
license
Hamash-Sukari was completed and the first-year work program has
commenced. The total land package held by Barrick is now 1,675 km2
spread between the Hamash-Sukari, Fatiri and Atalla licenses. Field
teams are actively screening the three licenses for indications of
mineralized systems with Tier One gold system potential with the aim
to execute maiden drill programs on prioritized targets later in 2023.
Lumwana
Following the successful completion of an internal preliminary
economic assessment, a pre-feasibility study commenced during the
fourth quarter of 2022 to further examine the potential of integrating
the Chimi Super Pit with the recently drilled Lubwe deposit. To support
this study, drilling continued at Lubwe to test the extents of the orebody
and to support the release of a potential maiden resource. The new
holes confirmed the presence of thick, higher-grade mineralization,
showing the potential to grow the Lubwe starter pits, which will
positively impact the potential Super Pit expansion.
Exploration drilling commenced at the Kamalamba target during the
fourth quarter of 2022 and initial observations confirmed the presence
of shallow chalcopyrite-mineralized schists. The program will continue
through early 2023 to fully test the potential for Kamalamba to provide
alternative higher-grade mill feed to support the potential Super Pit
expansion. At a third near-mine target, the Kababisa geological model
has been updated and exploration drilling is scheduled for early 2023.
103
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS Q4 2022 compared to Q3 2022
In the fourth quarter of 2022, gold revenues increased by 11%
compared to the prior quarter primarily due to higher sales volume,
while prices were in line. The average realized price for the three
month period ended December 31, 2022 was $1,728 per ounce versus
$1,722 per ounce for the prior quarter. During the fourth quarter of
2022, the gold price ranged from $1,617 per ounce to $1,833 per
ounce and closed the quarter at $1,814 per ounce. Gold prices in the
fourth quarter of 2022 continued to be volatile as a result of increasing
concerns over inflation, expectations of a moderation in the pace of
interest rate increases, fluctuations in the price of the trade-weighted
US dollar, and geopolitical concerns.
ATTRIBUTABLE GOLD PRODUCTION VARIANCE (000s oz)
Q4 2022 compared to Q3 2022
Q3 2022
Cortez (61.5%)
Carlin (61.5%)
Other
Turquoise Ridge (61.5%)
Kibali (45%)
Veladero (50%)
Loulo-Gounkoto (80%)
Bulyanhulu (84%)
North Mara (84%)
Pueblo Viejo (60%)
Q4 2022
988
42
36
29
16
14
9
9
1
(1)
(23)
1,120
In the fourth quarter of 2022, attributable gold production was
132 thousand ounces higher than the prior quarter, primarily driven
by stronger performance at Cortez due to significantly increased
ore tonnes mined from Crossroads and processed at the Cortez
oxide mill as well as higher grades mined from Cortez Hills; at Carlin
resulting from higher grades; and at Tongon (included in the “Other”
category above) reflecting higher grades, throughput and recoveries.
This was partially offset by lower production at Pueblo Viejo due to
decreased throughput, driven by planned maintenance and lower
grades processed.
Copper revenues in the fourth quarter of 2022 decreased by 15%
compared to the prior quarter, primarily due to lower copper sales
volume, partially offset by a higher realized copper price6. The average
market price in the fourth quarter of 2022 was $3.63 per pound versus
$3.51 per pound in the prior quarter. In the fourth quarter of 2022,
the realized copper price6 was higher than the market copper price
due to the impact of positive provisional pricing adjustments, whereas
a negative provisional pricing adjustment was recorded in the prior
quarter. During the fourth quarter of 2022, the copper price ranged
from $3.32 per pound to $3.91 per pound and closed the quarter
at $3.80 per pound. Copper prices in the fourth quarter of 2022
were influenced by economic optimism following the lifting of some
pandemic related restrictions, low copper stockpiles, and a weakening
trade-weighted US dollar.
Attributable copper production in the fourth quarter of 2022
decreased by 27 million pounds compared to the prior quarter,
primarily at Lumwana due to lower grades processed in line with the
mine plan and decreased throughput following a planned shutdown of
the mill. Attributable copper sales in the fourth quarter of 2022 were
18% lower than the prior quarter.
Jabal Sayid, Kingdom of Saudi Arabia33
At Lode 1 at Jabal Sayid, drilling continues to target extensions of the
recently discovered high-grade mineralization and samples have been
taken for independent geometallurgical test work. Results from the
fourth quarter of 2022 include 15.00 meters at 3.51% Cu (BDH1170)
and 52.60 meters at 2.67% Cu (BDH1171), supporting potential
resource expansion with an interim model update planned in the first
quarter of 2023.
Early success at the Janob target located one kilometer southwest
of Lode 1 demonstrates new mineralization potential with three
drillholes completed to date intersecting near-surface VMS-style
alteration and mineralization. The first result of 15.07 meters at
2.11% Cu (BDHR014) within a 41-meter-wide zone of strong Chlorite
alteration demonstrates the economic potential of the target with other
results pending. A geological model update and ground geophysics
are planned early in 2023 to refine and advance the target.
The Umm Ad Damar exploration project was provisionally
awarded to the Ma’aden-Barrick consortium following a competitive
bid-process. The project, located 20 km south-east of Jabal Sayid,
is prospective
for VMS mineralization. Aggressive exploration
programs are planned to commence early in 2023 upon issuance of
the exploration license and will target either stand-alone or satellite
opportunities for Jabal Sayid.
REVIEW OF FINANCIAL RESULTS
Revenue
($ millions, except
per ounce/pound
data in dollars)
For the
three months ended
For the years ended
12/31/22
9/30/22 12/31/22 12/31/21 12/31/20
Gold
000s oz solda
000s oz
produceda
Market price
($/oz)
Realized price
($/oz)b
Revenue
Copper
millions lbs solda
millions lbs
produceda
Market price
($/lb)
Realized price
($/lb)b
Revenue
Other sales
1,111
997
4,141
4,468
4,879
1,120
988
4,141
4,437
4,760
1,726
1,729
1,800
1,799
1,770
1,728
2,535
1,722
2,277
1,795
9,920
1,790
1,778
10,738
11,670
99
96
120
123
445
440
423
415
457
457
3.63
3.51
3.99
4.23
2.80
3.81
170
69
3.24
200
50
3.85
868
225
4.32
962
285
2.92
697
228
Total revenue
2,774
2,527
11,013
11,985
12,595
a. On an attributable basis.
b. Further information on these non-GAAP financial measures, including detailed
reconciliations, is included on pages 114–140 of this MD&A.
Our 2022 gold production of 4.14 million ounces was slightly below the
guidance range of 4.2 to 4.6 million ounces. As previously disclosed,
this was mainly due to lower than planned production at Turquoise
Ridge where processing operations were disrupted by maintenance
events at the Sage autoclave in the second half of 2022 and at Hemlo
due to the temporary water inflow that occurred late in the second
quarter of 2022 and impacted mining productivity into the third quarter
of 2022. Gold production was also impacted by lower than expected
performance from Cortez and Veladero. As expected and previously
guided, copper production of 440 million pounds for 2022 was in the
middle of the guidance range of 420 to 470 million pounds.
104
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
2022 compared to 2021
In 2022, gold revenues decreased by 8% compared to the prior year,
primarily due to a decrease in sales volumes while prices were in line.
The average market gold price for 2022 was $1,800 per ounce versus
$1,799 per ounce in the prior year.
In 2022, attributable gold production was 4,141 thousand ounces,
or 296 thousand ounces lower than the prior year, mainly due to the
completion of Phase 1 mining in May 2022 at Long Canyon (included
in the “Other” category below), lower grades processed at Pueblo
Viejo, lower leach and refractory ore tonnes mined at Cortez, and
lower throughput due to maintenance events at Turquoise Ridge.
These impacts were partially offset by increased production at Carlin
as the prior year was impacted by the mechanical mill failure at Carlin’s
Goldstrike roaster, which occurred in May 2021. Gold sales were in
line with gold production in 2022, whereas in 2021, gold sales were
higher than gold production as Veladero sold a portion of its built-up
gold inventory.
ATTRIBUTABLE GOLD PRODUCTION VARIANCE (000s oz)
Year ended December 31, 2022
2021
Other*
Pueblo Viejo (60%)
Cortez (61.5%)
Turquoise Ridge (61.5%)
Kibali (45%)
Loulo-Gounkoto (80%)
North Mara (84%)
Bulyanhulu (84%)
Veladero (50%)
Carlin (61.5%)
2022
4,437
(170)
(60)
(59)
(52)
(29)
(13)
3
18
23
43
4,141
* Other consists primarily of Long Canyon, Buzwagi and Hemlo.
Copper revenues for 2022 were 10% lower compared to the prior
year due to a lower realized copper price6, partially offset by higher
copper sales volume. In 2022, the realized copper price6 was lower
than the market copper price as a result of negative provisional pricing
adjustments, whereas a positive provisional pricing adjustment was
recorded in 2021.
Attributable copper production for 2022 was 25 million pounds
higher than the prior year, mainly due to higher grades processed at
Lumwana.
Production Costs
($ millions, except
per ounce/pound
data in dollars)
For the
three months ended
For the years ended
12/31/22
9/30/22 12/31/22 12/31/21 12/31/20
Gold
Site operating
costs
Depreciation
Royalty expense
Community
relations
Cost of sales
Cost of sales
($/oz)a
Total cash costs
($/oz)b
All-in sustaining
costs ($/oz)b
Copper
Site operating
costs
Depreciation
Royalty expense
Community
relations
Cost of sales
Cost of sales
($/lb)a
C1 cash costs
($/lb)b
All-in sustaining
costs ($/lb)b
1,286
1,161
506
85
13
393
74
10
4,678
1,756
342
4,218
1,889
371
4,421
1,975
410
37
26
26
1,890
1,638
6,813
6,504
6,832
1,324
1,226
1,241
1,093
1,056
868
891
862
725
1,242
1,269
1,222
1,026
88
92
16
1
197
89
59
23
1
172
336
223
103
4
666
266
197
103
3
569
699
967
292
208
54
2
556
3.19
2.30
2.43
2.32
2.02
2.25
1.86
1.89
1.72
1.54
3.98
3.13
3.18
2.62
2.23
a. Gold cost of sales per ounce is calculated as cost of sales across our gold
operations (excluding sites in closure or care and maintenance) divided by
ounces sold (both on an attributable basis using 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 using
Barrick’s ownership share).
b. Further information on these non-GAAP financial measures, including detailed
reconciliations, is included on pages 114–140 of this MD&A.
Q4 2022 compared to Q3 2022
In the fourth quarter of 2022, cost of sales applicable to gold was 15%
higher compared to the prior quarter, primarily as a result of higher
sales volume. Our 45% interest in Kibali is equity accounted and we
therefore do not include its cost of sales in our consolidated gold cost
of sales. On a per ounce basis, cost of sales applicable to gold7, after
including our proportionate share of cost of sales at our equity method
investees, was 8% higher than the prior quarter primarily due to higher
depreciation expense, partially offset by lower total cash costs6 per
ounce. Total cash costs per ounce6 were 3% lower, mainly due to the
impact of higher sales volume partially offset by an increase in natural
gas prices at the NGM operations.
In the fourth quarter of 2022, gold all-in sustaining costs6 decreased
by 2% on a per ounce basis compared to the prior quarter, primarily
due to lower total cash costs per ounce6 as described above.
105
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
In the fourth quarter of 2022, cost of sales applicable to copper was
15% higher than the prior quarter, primarily due to higher depreciation
expense, partially offset by lower royalty expense at Lumwana. Our
50% interests in Zaldívar and Jabal Sayid are equity accounted and
therefore we do not include their cost of sales in our consolidated
copper cost of sales. On a per pound basis, cost of sales applicable
to copper7 and C1 cash costs6, after including our proportionate share
of cost of sales at our equity method investees, increased by 39%
and 21%, respectively, compared to the prior quarter primarily due to
higher maintenance expense associated with the mill shutdown as well
as lower grades and tonnes processed at Lumwana. Cost of sales per
pound7 was further impacted by higher depreciation expense, mainly
at Lumwana.
In the fourth quarter of 2022, copper all-in sustaining costs6,
which have been adjusted to include our proportionate share of equity
method investees, were 27% higher per pound than the prior quarter,
primarily reflecting higher minesite sustaining capital expenditures6
at Lumwana mainly related to new mining equipment, combined with
higher C1 cash costs per pound6.
2022 compared to 2021
In 2022, cost of sales applicable to gold was 5% higher than the prior
year primarily due to higher site operating costs driven by higher
input prices for energy, labor and other consumables as a result
of inflationary pressures. This was partially offset by lower sales
volumes. On a per ounce basis, cost of sales applicable to gold7, after
including our proportionate share of cost of sales at our equity method
investees, and total cash costs per ounce6 were 14% and 19% higher,
respectively, than the prior year, primarily due to higher input prices for
energy, labor and consumables driven by inflationary pressures initially
related to global supply chain constraints, and then exacerbated by
the Russian invasion of Ukraine.
In 2022, gold all-in sustaining costs per ounce6 increased by
19% compared to the prior year primarily due to higher total cash
costs per ounce6, combined with higher minesite sustaining capital
expenditures6.
In 2022, cost of sales applicable to copper was 17% higher than
the prior year, primarily due to higher sales volume and the same
inflationary pressures as described above. Our 50% interests in
Zaldívar and Jabal Sayid are equity accounted and therefore we do
not include their cost of sales in our consolidated copper cost of sales.
On a per pound basis, cost of sales applicable to copper7 and C1
cash costs6, after including our proportionate share of cost of sales at
our equity method investees, increased by 5% and 10%, respectively,
compared to the prior year, primarily due to higher operating costs
as a result of higher input prices for energy, labor and consumables
driven by inflationary pressures initially related to global supply chain
constraints, and then exacerbated by the Russian invasion of Ukraine.
Copper all-in sustaining costs per pound6 was 21% higher than
the prior year, primarily reflecting higher minesite sustaining capital
expenditures6, combined with higher total C1 cash costs per pound6.
2022 compared to Guidance
2022 cost of sales applicable to gold7 was $1,241 per ounce, higher
than our guidance range of $1,070 to $1,150 per ounce. Gold total
cash costs6 for 2022 of $862 per ounce were higher than our guidance
range of $730 to $790 per ounce, while all-in sustaining costs6 for 2022
of $1,222 per ounce were higher than the guidance range of $1,040 to
$1,120 per ounce. All gold cost metrics were higher than the guidance
ranges, as expected and previously disclosed, mainly due to higher
input prices for energy, labor and consumables driven by inflationary
pressures initially related to global supply chain constraints and then
exacerbated by the Russian invasion of Ukraine, as well as lower
production and sales volumes.
2022 cost of sales applicable to copper7 and C1 cash costs6
were $2.43 per pound and $1.89 per pound, respectively, within our
guidance ranges of $2.20 to $2.50 per pound and $1.70 to $1.90 per
pound, respectively. 2022 copper all-in sustaining costs6 of $3.18
per pound was higher than our guidance range of $2.70 to $3.00 per
pound, mainly due to higher minesite sustaining capital expenditures6.
Capital Expendituresa
($ millions)
For the
three months ended
For the years ended
12/31/22
9/30/22 12/31/22 12/31/21 12/31/20
Minesite
sustainingb,c
Project capital
expendituresb,d
Capitalized interest
Total
consolidated
capital
expenditures
Attributable
capital
expenditurese
2022 Attributable
capital
expenditures
guidancee
557
324
10
571
2,071
1,673
1,559
213
8
949
29
747
15
471
24
891
792
3,049
2,435
2,054
743
609
2,417
1,951
1,651
$1,900
to
$2,200
a. These amounts are presented on a cash basis.
b. Further information on these non-GAAP financial measures, including detailed
reconciliations, is included on pages 114–140 of this MD&A.
c. Includes both minesite sustaining and mine development.
d. Project capital expenditures are included in our calculation of all-in costs, but
not included in our calculation of all-in sustaining costs.
e. These amounts are presented on the same basis as our guidance on page 64.
Q4 2022 compared to Q3 2022
In the fourth quarter of 2022, total consolidated capital expenditures
on a cash basis were 13% higher than the prior quarter due to an
increase in project capital expenditures6, partially offset by a slight
decrease in minesite sustaining capital expenditures6. Project capital
expenditures6 increased by 52% primarily due to the investment in
a new mining fleet at Lumwana, the continued development of the
Gounkoto underground expansion, as well as the solar plant projects
at both Loulo-Gounkoto and NGM. Minesite sustaining capital
expenditures6 decreased by 2% compared to the prior quarter,
primarily at Cortez due to lower capitalized waste stripping, partially
offset by an increase in minesite sustaining capital expenditures6 at
North Mara from the procurement of key underground equipment.
2022 compared to 2021
In 2022, total consolidated capital expenditures on a cash basis
increased by 25% compared to the prior year due to an increase in
both minesite sustaining capital expenditures6 and project capital
expenditures6. Higher minesite sustaining capital expenditures6 of
24% were mainly due to increased capitalized waste stripping at
Lumwana and Cortez, combined with higher spend on the Llagal
tailings storage facility and the purchase of new mining equipment
at Pueblo Viejo. Project capital expenditures6 increased by 27%
compared to the prior year, mainly due to the investment in a new
mining fleet at Lumwana, the ramp-up of open pit operations at North
Mara and the solar plant projects at both Loulo-Gounkoto and NGM.
106
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
2022 compared to Guidance
Attributable capital expenditures for 2022 of $2,417 million was higher
than the guidance range of $1,900 to $2,200 million. Attributable
minesite sustaining capital expenditures6 of $1,678 million was
higher than the guidance range of $1,350 to $1,550 million, mainly
due to higher energy and consumable prices related to the same
inflationary impacts that drove operating cost increases as described
throughout this MD&A, which in particular, impacted capitalized waste
stripping and underground development. Attributable project capital
expenditures6 of $725 million was higher than the guidance range of
$550 to $650 million, mainly due to the investment in a new mining fleet
at Lumwana, which was not included in guidance for 2022, an increase
in the previously disclosed capital cost for the plant expansion and
mine life extension project at Pueblo Viejo, as well as the timing of
expenditures relating to the Third Shaft project at Turquoise Ridge.
General and Administrative Expenses
($ millions)
For the
three months ended
For the years ended
12/31/22
9/30/22 12/31/22 12/31/21 12/31/20
Corporate
administration
Share-based
compensationa
General &
administrative
expenses
2022 General &
administrative
expenses
guidance
33
16
49
26
0
26
125
118
118
34
33
67
159
151
185
~$180
a. Based on US$17.21 share price as at December 31, 2022 (September 30,
2022: US$14.91; 2021: US$19.00; 2020: US$22.78).
Q4 2022 compared to Q3 2022
In the fourth quarter of 2022, general and administrative expenses
increased by $23 million compared to the third quarter of 2022,
primarily due to higher share-based compensation expense as a result
of an increase in our share price during the fourth quarter of 2022.
2022 compared to 2021
General and administrative expenses in 2022 increased by $8 million
compared to the prior year due to higher spend on external services and
travel, which was lower in 2021 as a result of the Covid-19 pandemic.
Exploration, Evaluation and Project Costs
($ millions)
For the
three months ended
For the years ended
12/31/22
9/30/22 12/31/22 12/31/21 12/31/20
Global exploration
and evaluation
Project costs:
Pascua-Lama
Pueblo Viejo
Reko Diq
Other
Corporate
development
Global exploration
and evaluation
and project
expense
Minesite
exploration and
evaluation
Total exploration,
evaluation
and project
expenses
2022 E&E
guidance
2022 project
expense
guidance
2022 total E&E
and project
expenses
guidance
38
16
5
9
10
5
83
23
25
7
5
2
11
5
55
22
123
122
143
52
24
14
47
15
46
3
10
26
16
37
8
7
12
9
275
223
216
75
64
79
287
295
106
77
350
$180
to
$200
$130
to
$150
$310
to
$350
Q4 2022 compared to Q3 2022
Exploration, evaluation and project expenses for the fourth quarter
of 2022 increased by $29 million compared to the prior quarter. This
was primarily due to higher project costs at Pascua-Lama as weather
conditions improved and Reko Diq as the project was reconstituted,
combined with higher global exploration and evaluation costs mainly
at the Latin America and Asia-Pacific region due to increased drilling
activity with the end of winter in the southern hemisphere.
2022 compared to Guidance
General and administrative expenses in 2022 were lower than guidance
of ~$180 million. Corporate administration expenses of $125 million
was below our guidance of ~$130 million, highlighting the continued
benefit of our cost discipline, while share-based compensation
expense of $34 million was lower than our guidance of ~$50 million
due to the commensurate movement in our share price.
2022 compared to 2021
Exploration, evaluation and project costs for 2022 increased by
$63 million compared to the prior year, primarily due to higher project
costs, mainly associated with our projects in the Latin America
and Asia-Pacific region, including Pascua-Lama and Reko Diq as
well as the technical and social studies for additional tailings storage
capacity at Pueblo Viejo.
2022 compared to Guidance
Exploration, evaluation and project expenses for 2022 of $350 million
were within the guidance range of $310 to $350 million. Exploration
and evaluation costs of $198 million were within the guidance range
of $180 to $200 million, while project expenses of $152 million were
slightly above the guidance range of $130 to $150 million.
107
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS Finance Costs, Net
Impairment Charges (Reversals)
($ millions)
For the
three months ended
For the years ended
($ millions)
12/31/22
9/30/22 12/31/22 12/31/21 12/31/20
Interest expensea
Accretion
(Gain)/loss on debt
extinguishment
Interest capitalized
Other finance
costs
Finance income
Finance costs,
net
2022 finance
costs, net
guidance
89
20
(12)
(10)
2
(38)
51
95
18
(2)
(8)
1
(31)
73
366
66
(14)
(29)
6
(94)
301
$330
to
$370
357
48
0
(16)
8
(42)
342
41
15
(24)
1
(28)
355
347
a. For the three months and year ended December 31, 2022, interest expense
includes approximately $8 million and $33 million, respectively, of non-cash
interest expense relating to the gold and silver streaming agreement with
Royal Gold, Inc. (September 30, 2022: $8 million; 2021: $35 million; 2020:
$34 million).
Q4 2022 compared to Q3 2022
In the fourth quarter of 2022, finance costs, net decreased by
30% compared to the prior quarter, mainly due to a larger gain on debt
extinguishment relating to the repurchase of $319 million (notional
value) of our 5.250% Notes due in 2042, which occurred in November
2022. This was combined with higher finance income earned on our
cash balance resulting from an increase in market interest rates.
2022 compared to 2021
In 2022, finance costs, net were 15% lower than the prior year,
primarily due to higher finance income earned on our cash balance
resulting from an increase in market interest rates, combined with a
gain on debt extinguishment which mainly relates to the repurchase
of $319 million (notional value) of our 5.250% Notes due in 2042,
which occurred in November 2022. This was partially offset by
higher accretion, also due to the increase in market interest rates.
2022 compared to Guidance
Finance costs, net for 2022 of $301 million were lower than the
guidance range of $330 to $370 million, mainly due to higher finance
income earned on our cash balance resulting from the increase in
market interest rates.
Additional Significant Statement of Income Items
($ millions)
For the
three months ended
For the years ended
12/31/22
9/30/22 12/31/22 12/31/21 12/31/20
Impairment
charges
(reversals)
Loss on currency
translation
Closed mine
rehabilitation
Other (income)
expense
1,642
24
1,671
(63)
(269)
4
44
3
16
(55)
(136)
29
18
50
90
(250)
(9)
(268)
(67)
(178)
108
For the
three months ended
For the years ended
12/31/22
9/30/22 12/31/22 12/31/21 12/31/20
Post-tax
(our
share)
Post-tax
(our
share)
Post-tax
(our
share)
Post-tax
(our
share)
Post-tax
(our
share)
Asset impairments
(reversals)
Veladero
Long Canyon
Lumwana
Lagunas Norte
Pueblo Viejo
Golden Sunlight
Hemlo
Tanzania
Pascua-Lama
Reko Diq
Other
Total asset
impairment
charges
(reversals)
Goodwill
Loulo-Gounkoto
Total asset
impairment
charges
Tax effects
and NCI
Total impairment
charges
(reversals)
318
42
0
0
0
0
0
0
0
(120)
1
241
950
950
451
0
0
15
0
0
0
0
0
0
0
2
17
0
0
7
318
43
16
0
0
0
0
0
0
(120)
4
261
950
950
460
0
0
0
(86)
(2)
12
4
3
1
0
4
0
0
0
0
2
0
0
(91)
0
0
21
(64)
(68)
0
0
1
0
0
(201)
1,642
24
1,671
(63)
(269)
Q4 2022 compared to Q3 2022
In the fourth quarter of 2022, we recognized $241 million (net of tax
and non-controlling interests) of net impairment charges, mainly
due to non-current asset impairments of $318 million (net of tax) at
Veladero and $42 million (net of tax and non-controlling interests) at
Long Canyon. At Veladero, we observed a decrease in the mine’s
discounted cash flows reflecting higher operating and capital costs
largely due to significant inflationary pressures coupled with strict
Argentine foreign exchange controls, a decrease
in expected
recovery rates from the leach pad and an increase in the WACC
primarily due to higher country risk and higher risk-free rates. At
Long Canyon, we observed a decrease in the mine’s discounted
cash flows in the updated life of mine plan, reflecting an update in the
permitting timeline. In addition, we recognized a goodwill impairment
of $950 million (net of non-controlling interests) related to Loulo-
Gounkoto as we observed a decrease in the mine’s discounted cash
flows reflecting higher operating and capital costs largely due to
inflationary pressures and a higher WACC driven by higher interest
rates as central banks have increased rates to combat inflation. These
impacts were partially offset by an impairment reversal of $120 million
(no tax or non-controlling interest impact) on our previously held
37.5% interest of Reko Diq as we completed the reconstitution of the
Reko Diq project in Pakistan’s Balochistan province on December 15,
2022. This compares to a net impairment charge of $17 million (net of
tax and non-controlling interests) in the prior quarter, mainly related to
an inventory impairment at Lumwana.
2022 compared to 2021
In 2022, we recognized $261 million (net of tax and non-controlling
interests) of net asset impairment charges, mainly due to non-current
asset impairments of $318 million (net of tax) at Veladero and $43 million
(net of tax and non-controlling interests) at Long Canyon. In addition,
we recognized a goodwill impairment of $950 million related to Loulo-
Gounkoto. These impacts were partially offset by an impairment
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
reversal of $120 million (no tax or non-controlling interest impact)
on our previously held 37.5% interest of Reko Diq. Details of these
impairment charges and reversals have been described above.
This compares to net impairment reversals of $64 million (net of tax
and non-controlling interests) in 2021 mainly due to the impairment
reversal at Lagunas Norte of $86 million (net of tax) resulting from the
agreement to sell our 100% interest to Boroo.
Refer to note 21 to the Financial Statements for a full description of
impairment charges, including pre-tax amounts and sensitivity analysis.
Loss on Currency Translation
Q4 2022 compared to Q3 2022
Loss on currency translation in the fourth quarter of 2022 was $4 million
compared to $3 million in the prior quarter. The losses in both quarters
mainly related to unrealized foreign currency translation losses from
the depreciation of the Argentine peso. The fourth quarter of 2022 was
also impacted by the depreciation of the Zambian kwacha, partially
offset by the appreciation of the Chilean peso and West African CFA
franc, while the prior quarter was partially offset by the appreciation
of the Zambian kwacha. Fluctuations in these currencies versus the
US dollar revalue our foreign currency denominated value-added tax
receivable balances.
2022 compared to 2021
Loss on currency translation for 2022 was $16 million compared to
$29 million in the prior year. The losses in both years mainly related
to unrealized foreign currency losses from the Argentine peso and
the Zambian kwacha, however 2022 was also partially offset by
the appreciation of the Chilean peso and West African CFA franc.
Fluctuations in these currencies versus the US dollar revalue our
foreign currency denominated value-added tax receivable balances.
Closed mine rehabilitation
Q4 2022 compared to Q3 2022
Closed mine rehabilitation in the fourth quarter of 2022 was an
expense of $44 million compared to a gain of $55 million in the prior
quarter, mainly due to a decrease in the market real risk-free rate used
to discount the closure provision during the current period, whereas
the market real risk-free rate increased in the prior quarter.
2022 compared to 2021
Closed mine rehabilitation for 2022 was a net gain of $136 million
compared to an expense of $18 million in the prior year. The gain
mainly related to an increase in the market real risk-free rate used to
discount the closure provision in the current period. The expense in
the prior year related to a higher closure cost estimate for a closure
site at NGM.
Other (Income) Expense
Q4 2022 compared to Q3 2022
In the fourth quarter of 2022, other income was $250 million compared
to $9 million in the prior quarter. Other income in the fourth quarter
of 2022 mainly related to a gain of $300 million in other income as
Barrick’s interest in the Reko Diq project increased from 37.5% to
50% upon the completion of the reconstitution of the Reko Diq project,
as measured in reference to the sale price agreed upon by Barrick’s
original partner in the Reko Diq joint venture to exit the reconstituted
project. This was partially offset by supplies obsolescence at
Bulyanhulu and North Mara. In the prior quarter, other income primarily
related to the combined $63 million gain on the sale of a portfolio of
royalties to Maverix Metals Inc. and the sale of a portfolio of royalties
by NGM to Gold Royalty Corp. These gains were partially offset by
care and maintenance expense at Porgera, as well as litigation costs
inclusive of provisions for the settlement of cases.
2022 compared to 2021
Other income was $268 million in 2022 compared to $67 million in
the prior year. In 2022, we recognized a fair value gain of $300 million
on the additional interest in the Reko Diq project and the combined
$63 million gain on the sale of two royalty portfolios, as described
above. This was partially offset by care and maintenance expenses
at Porgera of $53 million and supplies obsolescence at Bulyanhulu
and North Mara of $48 million. In 2021, other income mainly related
to a gain on the sale of Lone Tree of $205 million, partially offset by
care and maintenance expense at Porgera of $51 million, as well as a
$25 million litigation settlement and $21 million supplies obsolescence
expense at Buzwagi.
For a further breakdown of other expense (income), refer to note 9
to the Financial Statements.
Income Tax Expense
Income tax expense was $664 million in 2022. The unadjusted effective
income tax rate for 2022 was 40% of the income before income taxes.
The underlying effective income tax rate on ordinary income
for 2022 was 27% after adjusting for the impact of net impairment
charges; the impact of the sale of non-current assets; the impact of
updates to the rehabilitation provision for our non-operating mines;
the impact of foreign currency translation gains and losses on tax
balances; the impact of the Porgera mine being placed on care and
maintenance; the impact of the recognition and de-recognition of
deferred tax assets; and the impact of other expense adjustments.
We record deferred tax charges or credits if changes in facts
or circumstances affect the estimated tax basis of assets and
therefore, the expectations in our ability to realize deferred tax
assets. The interpretation of tax regulations and legislation as well as
their application to our business is complex and subject to change.
We have significant amounts of deferred tax assets, including tax
loss carry forwards, and also deferred tax liabilities. We also have
significant amounts of unrecognized deferred tax assets (e.g. for tax
losses in Canada). Potential changes in any of these amounts, as well
as our ability to realize deferred tax assets, could significantly affect
net income or cash flow in future periods. For further details on income
tax expense, refer to note 12 to the Financial Statements.
RECONCILIATION TO CANADIAN
STATUTORY RATE
For the years ended
At 26.5% statutory rate
12/31/22
12/31/21
446
1,228
Increase (decrease) due to:
Allowances and special tax deductionsa
Impact of foreign tax ratesb
Non-deductible expenses /
(non-taxable income)
Goodwill impairment charges not
tax deductible
Taxable gains on sales of
non-current assets
Net currency translation losses on
current and deferred tax balances
Tax impact from pass-through entities
and equity accounted investments
Current year tax results sheltered
by previously unrecognized deferred
tax assets
Recognition and de-recognition
of deferred tax assets
Adjustments in respect of prior years
Increase to income tax related
contingent liabilities
Impact of tax rate changes
Withholding taxes
Mining taxes
Tax impact of amounts recognized
within accumulated OCI
Other items
Income tax expense
(146)
(146)
(38)
325
1
59
(138)
(84)
118
0
24
23
(196)
(330)
33
15
17
13
0
82
201
(7)
5
664
(18)
(31)
24
19
66
110
323
8
2
1,344
a. We are able to claim certain allowances, incentives and tax deductions unique
to extractive industries that result in a lower effective tax rate.
b. We operate in multiple foreign tax jurisdictions that have tax rates different
than the Canadian statutory rate.
109
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
The more significant items impacting income tax expense in 2022
and 2021 include the following:
Currency Translation
Current and deferred tax balances are subject to remeasurement
for changes in foreign currency exchange rates each period. This
is required in countries where tax is paid in local currency and the
subsidiary has a different functional currency (e.g. US dollars). The
most significant balances relate to Argentine and Malian tax liabilities.
In 2022, a tax expense of $59 million arose from translation losses
on tax balances, mainly due to the weakening of the Argentine peso
and the West African CFA franc against the US dollar. In 2021, a tax
expense of $23 million arose from translation losses on tax balances
due to the weakening of the Argentine peso and the West African CFA
franc against the US dollar. These net translation losses are included
within income tax expense.
Withholding Taxes
In 2022, we have recorded $29 million (2021: $66 million) of
dividend withholding taxes related to the undistributed earnings
of our subsidiaries in Argentina and the United States. We have
also recorded $36 million (2021: $33 million, related to Argentina,
Saudi Arabia and the United States) of dividend withholding taxes
related to the distributed earnings of our subsidiaries in Tanzania
and the United States.
Accounting for Joint Ventures and Associates
Nevada Gold Mines is a limited liability company treated as a flow
through partnership for US tax purposes. The partnership is not
subject to federal income tax directly, but each of its partners is liable
for tax on its share of the profits of the partnership. As such, Barrick
accounts for its current and deferred income tax associated with the
investment (61.5% share) following the principles in IAS 12.
FINANCIAL CONDITION REVIEW
SUMMARY BALANCE SHEET AND KEY FINANCIAL RATIOS
($ millions, except ratios and share amounts)
($ millions, except ratios and share amounts)
As at December 31
Total cash and equivalents
Current assets
Non-current assets
Total Assets
Current liabilities excluding short-term debt
Non-current liabilities excluding long-term debta
Debt (current and long-term)
Total Liabilities
Total shareholders’ equity
Non-controlling interests
Total Equity
Total common shares outstanding (millions of shares)
Key Financial Ratios:
Current ratiob
Debt-to-equityc
Mining Taxes
Nevada Gold Mines is subject to a Net Proceeds of Minerals tax in
Nevada at a rate of 5% and the tax expense recorded in 2022 was
$88 million (2021: $136 million). Other significant mining taxes include
the Dominican Republic’s Net Profits Interest tax, which is determined
based on cash flows as defined by the Pueblo Viejo Special Lease
Agreement. A tax expense of $110 million (2021: $180 million) was
recorded for this in 2022. Both taxes are included on a consolidated
basis in the Company’s consolidated statements of income.
United States Tax Reform
In August 2022, President Joe Biden signed into law the Inflation
Reduction Act (“the Act”). The Act includes a 15% corporate
alternative minimum tax (“CAMT”) that is imposed on applicable
financial statement income (“AFSI”). The CAMT is effective for tax
years beginning after December 31, 2022. Barrick is subject to CAMT
because the Company meets the applicable income thresholds for a
foreign-parented multi-national group.
On December 27, 2022, the US Treasury Department and the
US Internal Revenue Service issued initial guidance regarding the
application of the CAMT. A 60-day consultation period for business
has commenced, and we are providing comments.
Impairments
A deferred tax recovery of $193 million (2021: deferred tax expense of
$nil related to the impairment reversal at Lagunas Norte) was recorded
related to the impairments at Veladero, Long Canyon and Lumwana.
There was no tax impact from the goodwill impairment recognized at
Loulo-Gounkoto.
2022
4,440
4,025
37,500
45,965
3,107
6,787
4,782
14,676
22,771
8,518
31,289
1,755
2.71:1
0.15:1
2021
5,280
2,969
38,641
46,890
2,071
7,362
5,150
14,583
23,857
8,450
32,307
1,779
3.95:1
0.16:1
2020
5,188
2,955
38,363
46,506
2,200
7,441
5,155
14,796
23,341
8,369
31,710
1,778
3.67:1
0.16:1
a. Non-current financial liabilities as at December 31, 2022 were $5,314 million (2021: $5,578 million; 2020: $5,486 million).
b. Represents current assets (excluding assets held-for-sale) divided by current liabilities (including short-term debt and excluding liabilities held-for-sale) as at
December 31, 2022, December 31, 2021 and December 31, 2020.
c. Represents debt divided by total shareholders’ equity (including minority interest) as at December 31, 2022, December 31, 2021, and December 31, 2020.
110
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
Balance Sheet Review
Total assets were $46.0 billion at December 31, 2022, slightly lower
than total assets at December 31, 2021.
Our asset base is primarily comprised of non-current assets such
as property, plant and equipment and goodwill, reflecting the capital-
intensive nature of the mining business and our history of growth
through acquisitions. Other significant assets include production
inventories, indirect taxes recoverable and receivable, concentrate
sales receivables, other government transaction and joint venture
related receivables, and cash and equivalents.
Total liabilities at December 31, 2022 were $14.7 billion, slightly
higher than total liabilities at December 31, 2021. Our liabilities are
primarily comprised of debt, other non-current liabilities (such as
provisions and deferred income tax liabilities), and accounts payable.
Shareholders’ Equity
February 7, 2023
Common shares
Stock options
Number of shares
1,755,349,661
–
Financial Position and Liquidity
We believe we have sufficient financial resources to meet our business
requirements for the foreseeable future, including capital expenditures,
working capital requirements, interest payments, share buybacks and
dividends. To date, we have not experienced significant negative
impacts to liquidity as a result of the Covid-19 pandemic.
Total cash and cash equivalents as at December 31, 2022 were
$4.4 billion. Our capital structure comprises a mix of debt, non-
controlling interest (primarily at NGM) and shareholders’ equity. As at
December 31, 2022, our total debt was $4.8 billion (debt net of cash
and equivalents was $342 million) and our debt-to-equity ratio was
0.15:1. This compares to debt as at December 31, 2021 of $5.2 billion
(debt, net of cash and cash equivalents was negative $130 million),
and a debt-to-equity ratio of 0.16:1.
In 2023, we have capital commitments of $396 million and expect
to incur attributable sustaining and project capital expenditures6 of
approximately $2,200 to $2,600 million in 2023 based on our guidance
range on page 65. In 2023, we have contractual obligations and
commitments of $672 million in purchase obligations for supplies and
consumables. In addition, we have $291 million in interest payments
and other amounts as detailed in the table on page 113. We expect
to fund these commitments through operating cash flow, which
is our primary source of liquidity, as well as existing cash balances
as necessary. As discussed on page 62, at the February 14, 2023
meeting, the Board of Directors authorized a new share buyback
program for the purchase up to $1 billion of Barrick’s outstanding
shares over the next 12 months. Barrick repurchased $424 million
of shares in 2022 under its prior share buyback program, which was
announced on February 16, 2022, and terminated in connection with
the new program. In February 2022, we also announced a performance
enhancement mechanism for our quarterly dividend that may result
in a higher dividend based on the closing cash, net of debt position
each quarter. This performance enhancement mechanism led to an
additional $0.25 per share of dividends paid during 2022. We also
repurchased approximately $375 million notional of debt securities
during the year, including approximately $319 million notional under
a successful tender transaction during the fourth quarter of 2022. We
may pursue additional selective repurchases in the future.
Our operating cash flow is dependent on the ability of our operations
to deliver projected future cash flows. The market prices of gold, and
to a lesser extent, copper, are the primary drivers of our operating
cash flow. Other options to enhance liquidity include further portfolio
optimization and the creation of new joint ventures and partnerships;
issuance of equity securities in the public markets or to private
investors, which could be undertaken for liquidity enhancement and/
or in connection with establishing a strategic partnership; issuance of
long-term debt securities in the public markets or to private investors;
and drawing on the $3.0 billion available under our undrawn Credit
Facility (subject to compliance with covenants and the making of
certain representations and warranties, this facility is available for
drawdown as a source of financing). In May 2022, we completed an
amendment and restatement of our undrawn $3.0 billion revolving
credit facility, including an extension of the termination date by one
year to May 2027, replacement of LIBOR with SOFR as the floating
rate benchmark for setting the interest rate for any US dollar funds
drawn down, and the establishment of sustainability-linked metrics.
The sustainability-linked metrics incorporated into the revolving credit
facility are made up of annual environmental and social performance
targets directly influenced by Barrick’s actions, rather than based on
external ratings. The performance targets include Scope 1 and Scope
2 greenhouse gas emissions intensity, water use efficiency (reuse and
recycling rates), and TRIFR8. Barrick may incur positive or negative
pricing adjustments on drawn credit spreads and standby fees based
on its sustainability performance versus the targets that have been
set. The Credit Facility was undrawn as at December 31, 2022. Both
Moody’s and S&P rate Barrick’s outstanding long-term debt as
investment grade. In December 2022, Moody’s upgraded Barrick’s
outstanding long-term corporate credit rating to A3 from Baa1, with a
stable outlook. This followed an upgrade to BBB+ from BBB by S&P in
March 2022. The key financial covenant in our undrawn credit facility
requires Barrick to maintain a net debt to total capitalization ratio of
less than 0.60:1. Barrick’s net debt to total capitalization ratio was
0.01:1 as at December 31, 2022 (0.00:1 as at December 31, 2021).
Summary of Cash Inflow (Outflow)
($ millions)
For the
three months ended
For the years ended
12/31/22
9/30/22 12/31/22 12/31/21 12/31/20
Net cash
provided by
operating
activities
Investing activities
Capital
expenditures
Investment
(purchases)
sales
Divestitures
Dividends
received from
equity method
investments
Other
Total investing
outflows
Financing activities
Net change
in debta
Dividendsb
Return of Capital
Net disbursements
to non-
controlling
interests
Share buyback
program
Other
Total financing
outflows
Effect of
exchange rate
Increase
(decrease)
in cash and
equivalents
795
758
3,481
4,378
5,417
(891)
(792)
(3,049)
(2,435)
(2,054)
(1)
0
99
13
0
0
101
52
381
0
869
88
(46)
27
520
37
220
283
141
124
(780)
(639)
(1,711)
(1,897)
(1,286)
(323)
(261)
0
(62)
(395)
(351)
(1,143)
0
0
(27)
(634)
(750)
(379)
(547)
0
(172)
(162)
(833)
(1,092)
(1,356)
(110)
51
(141)
60
(424)
191
0
115
0
28
(815)
(656)
(2,604)
(2,388)
(2,254)
0
(3)
(6)
(1)
(3)
(800)
(540)
(840)
92
1,874
a. The difference between the net change in debt on a cash basis and the
net change on the balance sheet is due to changes in non-cash charges,
specifically the unwinding of discounts and amortization of debt issue costs.
b. For the three months and year ended December 31, 2022, we declared and
paid dividends per share in US dollars totaling $0.15 and $0.65, respectively
(September 30, 2022: declared and paid $0.20; 2021: declared and paid
$0.36; 2020: declared and paid $0.31).
111
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
Q4 2022 compared to Q3 2022
In the fourth quarter of 2022, we generated $795 million in operating
cash flow, compared to $758 million in the prior quarter. The increase
of $37 million was primarily due to lower cash taxes paid and higher
gold sales volumes. This was combined with an increase in realized
copper prices6 and lower total cash costs per ounce6. These impacts
were partially offset by higher interest paid as a result of the timing
of semi-annual interest payments on our bonds, which occur in the
second and fourth quarters. Operating cash flow was further impacted
by an unfavorable movement in working capital, mainly in accounts
receivable. In addition, operating cash flow was also impacted by
lower copper sales volumes and higher C1 cash costs per pound6.
Cash outflows from investing activities in the fourth quarter of
2022 were $780 million, compared to $639 million in the prior quarter.
The increased outflow of $141 million was primarily due an increase
in capital expenditures primarily due to the investment in a new
mining fleet at Lumwana, the continued development of the Gounkoto
underground expansion, as well as the solar plant projects at both
Loulo-Gounkoto and NGM. In addition, the prior quarter benefited
from cash proceeds received of $50 million relating to the sale of a
portfolio of royalties to Maverix Metals Inc.
Net financing cash outflows for the fourth quarter of 2022
amounted to $815 million, compared to $656 million in the prior
quarter. The increase of $159 million is primarily due to the repurchase
of $319 million (notional value) of our 5.250% Notes due in 2042 in
November 2022. This was partially offset by lower dividends paid and
fewer shares repurchased under our 2022 share buyback program.
2022 compared to 2021
In 2022, we generated $3,481 million in operating cash flow, compared
to $4,378 million in the prior year. The decrease of $897 million was
primarily due to higher gold/copper total cash costs/C1 cash costs per
ounce/pound7, lower gold sales volumes and lower realized copper
prices6. These impacts were partially offset by lower cash taxes paid
and an increase in interest received on our cash balances resulting
from an increase in market interest rates. Operating cash flow was
further impacted by higher copper sales volumes.
Cash outflows from investing activities for 2022 were $1,711 million
compared to $1,897 million in the prior year. The decreased outflow of
$186 million was primarily due to proceeds received from investment
sales, including the sale of our interest in Endeavour Mining, Skeena
Resources Ltd., i-80 Gold and Perpetua Resources Corp, combined
with higher dividends received from equity method investments, in
particular Kibali. This was partially offset by higher capital expenditures.
Net financing cash outflows for 2022 amounted to $2,604 million,
compared to $2,388 million in the prior year. The higher outflow of
$216 million is primarily due to higher returns to shareholders in the
form of dividends paid, based on our new performance dividend policy
that commenced this year and the repurchase of shares under our
share buyback program. Additionally, the current year was impacted
by the repurchase of $375 million (notional value) of our 5.250% Notes
due in 2042 in the third and fourth quarters of 2022. This was partially
offset by the payment of a $750 million return of capital distribution
in 2021 and a decrease in net disbursements paid to non-controlling
interest, primarily to Newmont in relation to their interest in NGM,
in 2022.
Summary of Financial Instrumentsa
As at December 31, 2022
Financial Instrument
Principal/Notional Amount
Associated Risks
Cash and equivalents
Accounts receivable
Notes receivable
Norte Abierto joint venture partner receivable
Restricted cash
Derivative assets
Other investments
Accounts payable
Debt
Other liabilities
Restricted share units
Deferred share units
$4,440 million
Interest rate
•
• Credit
$554 million
• Credit
• Market
$160 million
$172 million
$1,096 million
$59 million
Interest rate
•
• Credit
Interest rate
•
• Credit
Interest rate
•
• Credit
• Liquidity
• Market
$112 million
• Liquidity
$1,556 million
• Liquidity
$4,804 million
•
Interest rate
$1,562 million
• Liquidity
$26 million
• Market
$14 million
• Market
a. Refer to notes 25, 26 and 28 to the Financial Statements for more information regarding financial instruments, fair value measurements and financial risk
management, respectively
112
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
COMMITMENTS AND CONTINGENCIES
Litigation and Claims
We are currently subject to various litigation proceedings as disclosed
in note 35 to the Financial Statements, and we may be involved in
disputes with other parties in the future that may result in litigation.
If we are unable to resolve these disputes favorably, it may have a
material adverse impact on our financial condition, cash flow and
results of operations.
Contractual Obligations and Commitments
In the normal course of business, we enter into contracts that give
rise to commitments for future minimum payments. The following
table summarizes the remaining contractual maturities of our financial
liabilities and operating and capital commitments shown on an
undiscounted basis:
($ millions)
Debta
Repayment of principal
Capital leases
Interest
Provisions for environmental rehabilitationb
Restricted share units
Pension benefits and other
post-retirement benefits
Purchase obligations for supplies
and consumablesc
Capital commitmentsd
Social development costse
Other obligationsf
Total
Payments due as at December 31, 2022
2023
2024
2025
2026
2027
2028 and
thereafter
0
13
291
227
20
5
672
396
19
36
1,679
0
9
290
152
6
5
245
3
23
36
769
12
9
289
104
0
5
177
0
10
49
655
47
9
286
99
0
5
165
0
8
56
675
0
8
282
111
0
5
158
0
4
42
610
4,675
22
3,250
1,982
0
40
336
0
45
480
Total
4,734
70
4,688
2,675
26
65
1,753
399
109
699
10,830
15,218
a. Debt and Interest – Our debt obligations do not include any subjective acceleration clauses or other clauses that enable the holder of the debt to call for early
repayment, except in the event that we breach any of the terms and conditions of the debt or for other customary events of default. We are not required to post
any collateral under any debt obligations. Projected interest payments on variable rate debt were based on interest rates in effect at December 31, 2022. Interest
is calculated on our long-term debt obligations using both fixed and variable rates.
b. Provisions for environmental rehabilitation – Amounts presented in the table represent the undiscounted uninflated future payments for the expected cost of
provisions for environmental rehabilitation.
c. Purchase obligations for supplies and consumables – Includes commitments related to new purchase obligations to secure supply of consumables such as acid
and cyanide for our production process.
d. Capital commitments – Purchase obligations for capital expenditures include only those items where binding commitments have been entered into.
e. Social development costs – Includes a commitment of $14 million in 2028 and thereafter related to the funding of a power transmission line in Argentina.
f. Other obligations includes the Pueblo Viejo joint venture partner shareholder loan, the deposit on the Pascua-Lama silver sale agreement with Wheaton Precious
Metals Corp., and minimum royalty payments.
REVIEW OF QUARTERLY RESULTS
Quarterly Informationa
($ millions, except where indicated)
Revenues
Realized price per ounce – goldb
Realized price per pound – copperb
Cost of sales
Net (loss) earnings
Per share (dollars)c
Adjusted net earningsb
Per share (dollars)b,c
Operating cash flow
Cash consolidated capital expendituresd
Free cash flowb
2022
2021
Q4
2,774
1,728
3.81
2,093
(735)
(0.42)
220
0.13
795
891
(96)
Q3
2,527
1,722
3.24
1,815
241
0.14
224
0.13
758
792
(34)
Q2
2,859
1,861
3.72
1,850
488
0.27
419
0.24
924
755
169
Q1
2,853
1,876
4.68
1,739
438
0.25
463
0.26
Q4
3,310
1,793
4.63
1,905
726
0.41
626
0.35
Q3
2,826
1,771
3.98
1,768
347
0.20
419
0.24
1,004
1,387
1,050
611
393
669
718
569
481
Q2
2,893
1,820
4.57
1,704
411
0.23
513
0.29
639
658
(19)
a. Sum of all the quarters may not add up to the annual total due to rounding.
b. Further information on these non-GAAP financial measures, including detailed reconciliations, is included on pages 114–140 of this MD&A.
c. Calculated using weighted average number of shares outstanding under the basic method of earnings per share.
d. Amounts presented on a consolidated cash basis.
Q1
2,956
1,777
4.12
1,712
538
0.30
507
0.29
1,302
539
763
113
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS Our recent financial results reflect our emphasis on cost discipline, an
agile management structure that empowers our site based leadership
teams and a portfolio of Tier One Gold Assets1. This, combined with
a trend of historically elevated gold and copper prices, has resulted
in strong operating cash flows over several quarters. The positive
free cash flow6 generated, together with the proceeds from various
divestitures, have allowed us to continue to strengthen our balance
sheet and to increase returns to shareholders.
Net earnings has also been impacted by the following items in
each quarter which have been excluded from adjusted net earnings6. In
the fourth quarter of 2022, we recorded a goodwill impairment of
$950 million (net of non-controlling interests) related to Loulo-
Gounkoto, a non-current asset impairment of $318 million (net of tax)
and a net realizable value impairment of leach pad inventory of
$27 million (net of tax) at Veladero, and a non-current asset impairment
of $42 million (net of tax and non-controlling interests) at Long Canyon.
In addition, we recorded an impairment reversal of $120 million and
a gain of $300 million following the completion of the transaction
allowing for the reconstitution of the Reko Diq project. In the fourth
quarter of 2021, we recorded a gain of $118 million (net of tax and non-
controlling interest) related to the disposition of Lone Tree. In the first
quarter of 2021, we recorded a net impairment reversal of $86 million
(no tax impact) at Lagunas Norte following the agreement to sell our
100% interest of the mine to Boroo.
INTERNAL CONTROL OVER FINANCIAL
REPORTING AND DISCLOSURE CONTROLS
AND PROCEDURES
Management is responsible for establishing and maintaining adequate
internal control over financial reporting and disclosure controls and
procedures. Internal control over financial reporting is a framework
designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for
external purposes in accordance with IFRS. The Company’s internal
control over financial reporting framework includes those policies
and procedures that (i) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (ii) provide reasonable
assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with IFRS, and that
receipts and expenditures of the Company are being made only in
accordance with authorizations of management and directors of the
Company; and (iii) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use or disposition
of the Company’s assets that could have a material effect on the
Company’s consolidated financial statements.
Disclosure controls and procedures form a broader framework
designed to provide reasonable assurance that other financial
information disclosed publicly fairly presents in all material respects
the financial condition, results of operations and cash flows of the
Company for the periods presented in this MD&A and Barrick’s Annual
Report. The Company’s disclosure controls and procedures framework
includes processes designed to ensure that material information
relating to the Company, including its consolidated subsidiaries, is
made known to management by others within those entities to allow
timely decisions regarding required disclosure.
Together, the
internal control over financial reporting and
disclosure controls and procedures frameworks provide internal
control over financial reporting and disclosure. Due to its inherent
limitations, internal control over financial reporting and disclosure may
not prevent or detect all misstatements. Further, the effectiveness
of internal control is subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of
compliance with policies or procedures may change.
There were no changes in the Company’s internal control over
financial reporting during the year ended December 31, 2022 that have
materially affected, or are reasonably likely to materially affect, the
Company’s internal control over financial reporting.
114
The management of Barrick, at the direction of our President
and Chief Executive Officer and Senior Executive Vice-President,
Chief Financial Officer, evaluated the effectiveness of the design and
operation of internal control over financial reporting as of the end of
the period covered by this report based on the framework and criteria
established in Internal Control – Integrated Framework (2013) as
issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based on that evaluation, management concluded that
the Company’s internal control over financial reporting was effective
as at December 31, 2022.
Barrick’s annual management report on internal control over
financial reporting and the integrated audit report of Barrick’s auditors
for the year ended December 31, 2022 will be included in Barrick’s
2022 Annual Report and its 2022 Form 40-F/Annual Information Form
on file with the US Securities and Exchange Commission and Canadian
provincial securities regulatory authorities.
IFRS CRITICAL ACCOUNTING POLICIES
AND ACCOUNTING ESTIMATES
Management has discussed the development and selection of our
critical accounting estimates with the Audit & Risk Committee of the
Board of Directors, and the Audit & Risk Committee has reviewed
the disclosure relating to such estimates in conjunction with its
review of this MD&A. The accounting policies and methods we
utilize determine how we report our financial condition and results of
operations, and they may require Management to make estimates or
rely on assumptions about matters that are inherently uncertain. The
consolidated financial statements have been prepared in accordance
with IFRS as issued by the International Accounting Standards Board
under the historical cost convention, as modified by revaluation of
certain financial assets, derivative contracts and post-retirement
assets. Our significant accounting policies are disclosed in note 2 to
the Financial Statements, including a summary of current and future
changes in accounting policies.
Critical Accounting Estimates and Judgments
Certain accounting estimates have been identified as being “critical”
to the presentation of our financial condition and results of operations
because they require us to make subjective and/or complex judgments
about matters that are inherently uncertain; or there is a reasonable
likelihood that materially different amounts could be reported under
different conditions or using different assumptions and estimates. Our
significant accounting judgments, estimates and assumptions are
disclosed in note 3 to the accompanying Financial Statements.
NON-GAAP FINANCIAL MEASURES
Adjusted Net Earnings and Adjusted Net Earnings
per Share
Adjusted net earnings is a non-GAAP financial measure which
excludes the following from net earnings:
•
Impairment charges (reversals) related to intangibles, goodwill,
property, plant and equipment, and investments;
• Acquisition/disposition gains/losses;
• Foreign currency translation gains/losses;
• Significant tax adjustments;
• Other items that are not indicative of the underlying operating
performance of our core mining business; and
• Tax effect and non-controlling interest of the above items.
Management uses this measure internally to evaluate our underlying
operating performance for the reporting periods presented and to
assist with the planning and forecasting of future operating results.
Management believes that adjusted net earnings is a useful measure
impairment charges, acquisition/
of our performance because
disposition gains/losses and significant tax adjustments do not reflect
the underlying operating performance of our core mining business and
are not necessarily indicative of future operating results. Furthermore,
foreign currency translation gains/losses are not necessarily reflective
of the underlying operating results for the reporting periods presented.
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS The tax effect and non-controlling interest of the adjusting items are
also excluded to reconcile the amounts to Barrick’s share on a post-
tax basis, consistent with net earnings.
for
As noted, we use
internal purposes.
this measure
Management’s internal budgets and forecasts and public guidance
do not reflect the types of items we adjust for. Consequently, the
presentation of adjusted net earnings enables investors and analysts
to better understand the underlying operating performance of our
core mining business through the eyes of management. Management
periodically evaluates the components of adjusted net earnings based
on an internal assessment of performance measures that are useful for
evaluating the operating performance of our business segments and
a review of the non-GAAP financial measures used by mining industry
analysts and other mining companies.
Adjusted net earnings is intended to provide additional information
only and does not have any standardized definition under IFRS and
should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The measures are not
necessarily indicative of operating profit or cash flow from operations
as determined under IFRS. Other companies may calculate these
measures differently. The following table reconciles these non-GAAP
financial measures to the most directly comparable IFRS measure.
RECONCILIATION OF NET EARNINGS TO NET EARNINGS PER SHARE, ADJUSTED NET EARNINGS AND ADJUSTED
NET EARNINGS PER SHARE
($ millions, except per share amounts in dollars)
12/31/22
9/30/22
12/31/22
12/31/21
12/31/20
For the three months ended
For the years ended
Net (loss) earnings attributable to equity holders of the Company
Impairment charges (reversals) related to non-current assetsa
Acquisition/disposition gainsb
Loss on currency translation
Significant tax adjustmentsc
Other expense (income) adjustmentsd
Non-controlling intereste
Tax effecte
Adjusted net earnings
Net (loss) earnings per sharef
Adjusted net earnings per sharef
(735)
1,642
(319)
4
(4)
126
(271)
(223)
220
(0.42)
0.13
241
24
(64)
3
44
(27)
4
(1)
224
0.14
0.13
432
1,671
(405)
16
95
17
(274)
(226)
1,326
0.24
0.75
2,022
2,324
(63)
(213)
29
125
73
64
28
2,065
1.14
1.16
(269)
(180)
50
(119)
71
(12)
177
2,042
1.31
1.15
a. Net impairment charges for the three month period and year ended December 31, 2022 primarily relate to a goodwill impairment at Loulo-Gounkoto, and non-current
asset impairments at Veladero and Long Canyon, partially offset by an impairment reversal at Reko Diq. Net impairment charges for the prior year mainly relate to
non-current asset reversals at Lagunas Norte.
b. Acquisition/disposition gains for the three month period and year ended December 31, 2022 primarily relate to a gain as Barrick’s interest in the Reko Diq project
increased from 37.5% to 50%. The year ended December 31, 2022 was further impacted by the sale of a portfolio of royalties to Maverix Metals Inc. and the sale of
a portfolio of royalties by NGM to Gold Royalty Corp. Acquisition/disposition gains for the prior year primarily relate to the gain on the sale of Lone Tree.
c. Significant tax adjustments in the current year primarily relate to deferred tax recovery as a result of net impairment charges; foreign currency translation gains and
losses on tax balances; the Porgera mine continuing to be on care and maintenance; updates to the rehabilitation provision for our non-operating mines; and the
recognition and de-recognition of deferred tax assets. In 2021, significant tax adjustments primarily relate to deferred tax expense as a result of tax reform measures
in Argentina, the foreign exchange impact on current tax expense in Peru and the remeasurement of current and deferred tax balances, the acquisition of the 40%
interest in South Arturo that NGM did not already own, the sale of Lagunas Norte, the settlement of the Massawa Senegalese tax dispute and the recognition/
derecognition of our deferred taxes in various jurisdictions.
d. Other expense adjustments for the three month period and year ended December 31, 2022 mainly relate to a net realizable value impairment of leach pad inventory
at Veladero, care and maintenance expenses at Porgera and supplies obsolescence write-off at Bulyanhulu and North Mara. The prior year was impacted by care
and maintenance expenses at Porgera and a $25 million litigation settlement.
e. Non-controlling interest and tax effect for the current year primarily relates to impairment charges (reversals) related to non-current assets.
f. Calculated using weighted average number of shares outstanding under the basic method of earnings per share.
Free Cash Flow
Free cash flow is a non-GAAP financial measure that deducts
capital expenditures from net cash provided by operating activities.
Management believes this to be a useful indicator of our ability to operate
without reliance on additional borrowing or usage of existing cash.
Free cash flow is intended to provide additional information only
and does not have any standardized definition under IFRS, and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The measure is not
necessarily indicative of operating profit or cash flow from operations
as determined under IFRS. Other companies may calculate this
measure differently. The following table reconciles this non-GAAP
financial measure to the most directly comparable IFRS measure.
115
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
($ millions)
Net cash provided by operating activities
Capital expenditures
Free cash flow
Capital Expenditures
Capital expenditures are classified into minesite sustaining capital
expenditures or project capital expenditures depending on the
nature of the expenditure. Minesite sustaining capital expenditures
is the capital spending required to support current production levels.
Project capital expenditures represent the capital spending at new
projects and major, discrete projects at existing operations intended
to increase net present value through higher production or longer mine
life. Management believes this to be a useful indicator of the purpose of
capital expenditures and this distinction is an input into the calculation
of all-in sustaining costs per ounce and all-in costs per ounce.
For the three months ended
For the years ended
12/31/22
9/30/22
12/31/22
12/31/21
12/31/20
795
(891)
(96)
758
(792)
(34)
3,481
(3,049)
432
4,378
(2,435)
1,943
5,417
(2,054)
3,363
Classifying capital expenditures is intended to provide additional
information only and does not have any standardized definition under
IFRS, and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Other
companies may calculate these measures differently. The following
table reconciles these non-GAAP financial measures to the most
directly comparable IFRS measure.
RECONCILIATION OF THE CLASSIFICATION OF CAPITAL EXPENDITURES
($ millions)
Minesite sustaining capital expenditures
Project capital expenditures
Capitalized interest
Total consolidated capital expenditures
Total cash costs per ounce, All-in sustaining costs per
ounce, All-in costs per ounce, C1 cash costs per pound
and All-in sustaining costs per pound
Total cash costs per ounce, all-in sustaining costs per ounce and all-in
costs per ounce are non-GAAP financial measures which are calculated
based on the definition published by the World Gold Council (a market
development organization for the gold industry comprised of and
funded by gold mining companies from around the world, including
Barrick, the “WGC”). 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 includes minesite 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.
All-in costs starts with all-in sustaining costs and adds additional
costs that reflect the varying costs of producing gold over the life-cycle
of a mine, including: project capital expenditures (capital spending
at new projects and major, discrete projects at existing operations
intended to increase net present value through higher production
or longer mine life) and other non-sustaining costs (primarily non-
sustaining leases, exploration and evaluation costs, community
relations costs and general and administrative costs that are not
associated with current operations). These definitions recognize that
there are different costs associated with the life-cycle of a mine, and
that it is therefore appropriate to distinguish between sustaining and
non-sustaining costs.
We believe that our use of total cash costs, all-in sustaining costs
and all-in 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
For the three months ended
For the years ended
12/31/22
9/30/22
12/31/22
12/31/21
12/31/20
557
324
10
891
571
213
8
792
2,071
949
29
3,049
1,673
747
15
2,435
1,559
471
24
2,054
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, all-in sustaining costs and all-in costs
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.
In addition to presenting these metrics on a by-product basis, we
have calculated these metrics on a co-product basis. Our co-product
metrics remove the impact of other metal sales that are produced as
a by-product of our gold production from cost per ounce calculations
but does not reflect a reduction in costs for costs associated with
other metal sales.
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.
116
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS RECONCILIATION OF GOLD COST OF SALES TO TOTAL CASH COSTS, ALL-IN SUSTAINING COSTS AND ALL-IN
COSTS, INCLUDING ON A PER OUNCE BASIS
($ millions, except per ounce information in dollars)
Cost of sales applicable to gold production
Depreciation
Cash cost of sales applicable to equity method investments
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and evaluation costs
Minesite sustaining capital expenditures
Sustaining leases
Rehabilitation – accretion and amortization (operating sites)
Non-controlling interest, copper operations and other
All-in sustaining costs
Global exploration and evaluation and project expense
Community relations costs not related to current operations
Project capital expenditures
Non-sustaining leases
Rehabilitation – accretion and amortization
(non-operating sites)
Non-controlling interest and copper operations and other
All-in costs
Ounces sold – equity basis (000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce (on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce (on a co-product basis)
All-in costs per ounce
All-in costs per ounce (on a co-product basis)
a. Non-recurring items
Footnote
For the three months ended
9/30/22
12/31/22
For the years ended
12/31/22
12/31/21
12/31/20
1,890
(506)
56
(69)
(23)
7
(393)
962
49
23
557
11
14
(239)
1,377
83
0
324
0
6
(130)
1,660
1,111
1,324
868
908
1,242
1,282
1,496
1,536
1,638
(393)
61
(50)
0
(7)
(360)
889
26
22
571
12
12
(264)
1,268
55
0
213
0
5
(71)
1,470
997
1,226
891
925
1,269
1,303
1,474
1,508
6,813
(1,756)
222
(225)
(23)
(23)
(1,442)
3,566
159
75
2,071
38
50
(900)
5,059
275
0
949
0
19
(327)
5,975
4,141
1,241
862
897
1,222
1,257
1,443
1,478
6,504
(1,889)
217
(285)
0
(48)
(1,261)
3,238
151
64
1,673
41
50
(636)
4,581
223
0
747
0
13
(240)
5,324
4,468
1,093
725
765
1,026
1,066
1,192
1,232
6,832
(1,975)
222
(228)
1
(129)
(1,312)
3,411
185
79
1,559
31
46
(594)
4,717
216
1
471
4
10
(157)
5,262
4,879
1,056
699
727
967
995
1,079
1,107
a
b
c
d
e
f
g
d
e
f
g
h
i,j
j
j,k
j
j,k
j
j,k
These costs are not indicative of our cost of production and have been excluded from the calculation of total cash costs. Non-recurring items
for the three months ended and year ended December 31, 2022 relate to a net realizable value impairment of leach pad inventory at Veladero.
b. Other
Other adjustments for the three months and year ended December 31, 2022 include the removal of total cash costs and by-product credits
associated with assets which are producing incidental ounces, of $7 million and $24 million, respectively (September 30, 2022: $7 million;
2021: $51 million; 2020: $104 million). This includes Pierina, Golden Sunlight, Morila up until its divestiture in November 2020, Lagunas Norte
up until its divestiture in June 2021 and Buzwagi starting in the fourth quarter of 2021.
c. Non-controlling interests
Non-controlling interests include non-controlling interests related to gold production of $560 million and $2,032 million, respectively, for
the three months and year ended December 31, 2022 (September 30, 2022: $491 million; 2021: $1,923 million; 2020: $1,959 million). Non-
controlling interests include Nevada Gold Mines, Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara, Bulyanhulu and Buzwagi up until the
third quarter of 2021. Refer to note 5 to the Financial Statements for further information.
d. Exploration and evaluation costs
Exploration, evaluation and project expenses are presented as minesite if it supports current mine operations and project if it relates to future
projects. Refer to page 107 of this MD&A.
e. Capital expenditures
Capital expenditures are related to our gold sites only and are split between minesite sustaining and project capital expenditures. Project
capital expenditures are capital spending at new projects and major, discrete projects at existing operations intended to increase net
present value through higher production or longer mine life. Significant projects in the current year are the expansion project at Pueblo Viejo,
construction of the Third Shaft at Turquoise Ridge, and the Veladero Phase 7 leach pad expansion. Refer to page 106 of this MD&A.
117
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
f. Rehabilitation – accretion and amortization
Includes depreciation on the assets related to rehabilitation provisions of our gold operations and accretion on the rehabilitation provisions
of our gold operations, split between operating and non-operating sites.
g. Non-controlling interest and copper operations
Removes general & administrative costs related to non-controlling interests and copper based on a percentage allocation of revenue. Also
removes exploration, evaluation and project expenses, rehabilitation costs and capital expenditures incurred by our copper sites and the
non-controlling interests of NGM (including South Arturo), Pueblo Viejo, Loulo-Gounkoto, Tongon, North Mara, Bulyanhulu and Buzwagi (up
until the third quarter of 2021) operating segments. It also includes capital expenditures applicable to our equity method investment in Kibali.
Figures remove the impact of Pierina, Golden Sunlight, Morila up until its divestiture in November 2020, Lagunas Norte up until its divestiture
in June 2021 and Buzwagi starting in the fourth quarter of 2021. The impact is summarized as the following:
($ millions)
For the three months ended
For the years ended
Non-controlling interest, copper operations and other
12/31/22
9/30/22
12/31/22
12/31/21
12/31/20
General & administrative costs
Minesite exploration and evaluation costs
Rehabilitation – accretion and amortization (operating sites)
Minesite sustaining capital expenditures
All-in sustaining costs total
Global exploration and evaluation and project costs
Project capital expenditures
All-in costs total
h. Ounces sold – equity basis
(8)
(8)
(6)
(217)
(239)
(8)
(122)
(130)
(5)
(9)
(3)
(247)
(264)
(9)
(62)
(71)
(31)
(27)
(16)
(826)
(900)
(32)
(295)
(327)
(21)
(19)
(14)
(582)
(636)
(19)
(221)
(240)
(25)
(25)
(14)
(530)
(594)
(25)
(132)
(157)
Figures remove the impact of Pierina, Golden Sunlight, Morila up until its divestiture in November 2020, Lagunas Norte up until its divestiture
in June 2021, and Buzwagi starting in the fourth quarter of 2021. Some of these assets are producing incidental ounces while in closure or
care and maintenance.
i. Cost of sales per ounce
Figures remove the cost of sales impact of Pierina of $7 million and $24 million, respectively, for the three months and year ended
December 31, 2022 (September 30, 2022: $6 million; 2021: $20 million; 2020: $18 million); Golden Sunlight of $nil and $nil, respectively, for
the three months and year ended December 31, 2022 (September 30, 2022: $nil; 2021: $nil; 2020: $nil); up until its divestiture in November
2020, Morila of $nil and $nil, respectively, for the three months and year ended December 31, 2022 (September 30, 2022: $nil; 2021: $nil;
2020: $22 million); up until its divestiture in June 2021, Lagunas Norte of $nil and $nil, respectively, for the three months and year ended
December 31, 2022 (September 30, 2022: $nil; 2021: $37 million; 2020: $92 million); and starting in the fourth quarter of 2021, Buzwagi of $nil
and $nil, respectively, for the three months and year ended December 31, 2022 (September 30, 2022: $nil; 2021: $nil; 2020: $nil), which are
producing incidental ounces. Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure
or care and maintenance) divided by ounces sold (both on an attributable basis using Barrick’s ownership share).
j. Per ounce figures
Cost of sales per ounce, cash costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce may not calculate based on
amounts presented in this table due to rounding.
k. Co-product costs per ounce
Cash costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce presented on a co-product basis remove the impact of
by-product credits of our gold production (net of non-controlling interest) calculated as:
($ millions)
By-product credits
Non-controlling interest
By-product credits (net of non-controlling interest)
For the three months ended
For the years ended
12/31/22
9/30/22
12/31/22
12/31/21
12/31/20
69
(25)
44
50
(16)
34
225
(78)
147
285
(108)
177
228
(92)
136
118
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
RECONCILIATION OF GOLD COST OF SALES TO TOTAL CASH COSTS, ALL-IN SUSTAINING COSTS AND ALL-IN
COSTS, INCLUDING ON A PER OUNCE BASIS, BY OPERATING SEGMENT
($ millions, except per ounce information in dollars)
For the three months ended 12/31/22
Footnote
Carlina
Cortezb
Turquoise
Ridge
Long
Canyon
Phoenixa
Cost of sales applicable to
gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and
evaluation costs
Minesite sustaining
capital expenditures
Sustaining capital leases
Rehabilitation – accretion and
amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and
evaluation and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis
(000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce
(on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce
(on a co-product basis)
All-in costs per ounce
All-in costs per ounce
(on a co-product basis)
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
473
(89)
(1)
0
(6)
(145)
232
0
6
138
0
2
(56)
322
0
0
0
322
266
1,081
878
879
1,217
1,218
1,217
287
(97)
0
0
0
(73)
117
0
1
37
0
4
(17)
142
0
32
(12)
162
137
1,284
848
850
1,037
1,039
1,175
182
(51)
0
0
0
(51)
80
0
2
24
0
1
(10)
97
0
15
(7)
105
74
1,518
1,089
1,092
1,304
1,307
1,424
1,218
1,177
1,427
9
(6)
0
0
0
(1)
2
0
1
0
0
0
(1)
2
0
0
0
2
3
1,812
616
616
664
664
664
664
Nevada
Gold
Minesc
1,054
(262)
(45)
0
8
(291)
464
0
10
208
2
7
(91)
600
0
68
(27)
641
511
1,257
906
943
1,179
1,216
1,260
Hemlo
North
America
55
(8)
(1)
0
0
0
46
0
1
11
0
1
0
59
0
0
0
59
38
1,451
1,227
1,233
1,557
1,563
1,558
1,109
(270)
(46)
0
8
(291)
510
0
11
219
2
8
(91)
659
0
68
(27)
700
549
1,271
928
963
1,205
1,240
1,280
97
(18)
(44)
0
14
(19)
30
0
0
3
1
0
(2)
32
0
0
0
32
31
1,901
946
1,533
1,037
1,624
1,037
1,624
1,297
1,564
1,315
119
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions, except per ounce information in dollars)
Cost of sales applicable to gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and evaluation costs
Minesite sustaining capital expenditures
Sustaining capital leases
Rehabilitation – accretion and amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and evaluation and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis (000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce (on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce (on a co-product basis)
All-in costs per ounce
All-in costs per ounce (on a co-product basis)
Footnote
Pueblo Viejo
For the three months ended 12/31/22
Latin America &
Asia Pacific
Veladero
193
(60)
(12)
0
0
(48)
73
0
1
47
0
0
(19)
102
1
110
(45)
168
96
1,215
764
835
1,065
1,136
1,757
1,828
122
(47)
(1)
(23)
0
0
51
0
1
29
0
0
0
81
0
10
0
91
53
2,309
954
990
1,526
1,562
1,731
1,767
315
(107)
(13)
(23)
0
(48)
124
0
2
76
0
0
(19)
183
1
120
(45)
259
149
1,614
829
888
1,231
1,290
1,821
1,880
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
120
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS ($ millions, except per ounce information in dollars)
Footnote
Loulo-
Gounkoto
Kibali
North
Mara
For the three months ended 12/31/22
Africa &
Middle East
Tongon Bulyanhulu
Cost of sales applicable to
gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and
evaluation costs
Minesite sustaining capital
expenditures
Sustaining capital leases
Rehabilitation – accretion and
amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and evaluation
and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis (000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce
(on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce
(on a co-product basis)
All-in costs per ounce
All-in costs per ounce
(on a co-product basis)
215
(70)
0
0
0
(29)
116
0
3
45
1
0
(9)
156
0
50
(10)
196
141
149
(90)
0
0
0
0
59
0
1
28
2
1
0
91
0
7
0
98
94
1,216
822
822
1,102
1,102
1,386
1,570
617
621
981
985
1,044
86
(22)
(1)
0
0
(10)
53
0
1
43
0
2
(7)
92
0
18
(3)
107
70
1,030
758
764
1,301
1,307
1,519
92
(20)
(1)
0
0
(7)
64
0
1
20
0
0
(2)
83
0
0
0
83
59
1,381
1,070
1,073
1,404
1,407
1,404
1,386
1,048
1,525
1,407
71
(14)
(6)
0
0
(8)
43
0
3
26
0
0
(4)
68
0
8
(2)
74
49
1,237
896
993
1,401
1,498
1,536
1,633
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
613
(216)
(8)
0
0
(54)
335
0
9
162
3
3
(22)
490
0
83
(15)
558
413
1,291
808
822
1,186
1,200
1,351
1,365
121
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions, except per ounce information in dollars)
Footnote
Carlina
Cortezb
Turquoise
Ridge
Long
Canyon
Phoenixa
For the three months ended 9/30/22
Nevada
Gold
Minesc
North
America
Hemlo
Cost of sales applicable
to gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and
evaluation costs
Minesite sustaining
capital expenditures
Sustaining capital leases
Rehabilitation – accretion and
amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and
evaluation and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis
(000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce
(on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce
(on a co-product basis)
All-in costs per ounce
All-in costs per ounce
(on a co-product basis)
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
425
(74)
(1)
0
(4)
(133)
213
0
7
170
(46)
0
0
0
(48)
76
0
1
124
102
0
3
(52)
295
0
0
0
295
226
1,137
943
944
1,304
1,305
1,304
0
3
(40)
142
0
28
(11)
159
99
1,056
770
772
1,426
1,428
1,602
155
(41)
(1)
0
0
(43)
70
0
1
30
0
0
(12)
89
0
14
(5)
98
64
1,509
1,105
1,110
1,423
1,428
1,559
1,305
1,604
1,564
19
(12)
0
0
0
(3)
4
0
0
0
0
0
0
4
0
0
0
4
6
1,769
662
662
684
684
684
684
93
(20)
(31)
0
3
(17)
28
0
0
6
0
1
(3)
32
0
0
0
32
29
1,964
953
1,548
1,084
1,679
1,084
862
(193)
(33)
0
(1)
(244)
391
0
9
266
0
7
(108)
565
0
45
(17)
593
424
1,242
924
967
1,333
1,376
1,398
46
(6)
0
0
0
0
40
0
1
9
1
0
0
51
0
0
0
51
27
1,670
1,446
1,451
1,865
1,870
1,866
908
(199)
(33)
0
(1)
(244)
431
0
10
275
1
7
(108)
616
0
45
(17)
644
451
1,268
956
997
1,365
1,406
1,427
1,679
1,441
1,871
1,468
122
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions, except per ounce information in dollars)
Cost of sales applicable to gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and evaluation costs
Minesite sustaining capital expenditures
Sustaining capital leases
Rehabilitation – accretion and amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and evaluation and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis (000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce (on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce (on a co-product basis)
All-in costs per ounce
All-in costs per ounce (on a co-product basis)
Footnote
Pueblo Viejo
For the three months ended 9/30/22
Latin America &
Asia Pacific
Veladero
225
(64)
(10)
0
0
(60)
91
0
0
67
0
1
(27)
132
0
101
(40)
193
124
1,097
733
784
1,063
1,114
1,554
1,605
63
(23)
(1)
0
0
0
39
0
0
27
1
1
0
68
0
5
0
73
44
1,430
893
911
1,570
1,588
1,659
1,677
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
288
(87)
(11)
0
0
(60)
130
0
0
94
1
2
(27)
200
0
106
(40)
266
168
1,199
774
816
1,198
1,240
1,625
1,667
123
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS ($ millions, except per ounce information in dollars)
Footnote
Loulo-
Gounkoto
Kibali
North
Mara
For the three months ended 9/30/22
Africa &
Middle East
Bulyanhulu
Tongon
Cost of sales applicable
to gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and
evaluation costs
Minesite sustaining capital
expenditures
Sustaining capital leases
Rehabilitation – accretion and
amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and evaluation
and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis (000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce
(on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce
(on a co-product basis)
All-in costs per ounce
All-in costs per ounce
(on a co-product basis)
196
(60)
0
0
0
(28)
108
0
3
55
1
1
(12)
156
0
27
(6)
177
129
1,220
845
845
1,216
1,216
1,385
1,385
91
(27)
0
0
0
0
64
0
(4)
13
4
0
0
77
0
5
0
82
88
80
(18)
0
0
0
(10)
52
0
1
16
0
1
(3)
67
0
16
(3)
80
70
79
(13)
0
0
0
(7)
59
0
1
5
1
0
0
66
0
0
0
66
41
1,047
731
734
876
879
940
943
956
737
742
951
956
1,149
1,744
1,462
1,465
1,607
1,610
1,607
1,154
1,610
74
(15)
(5)
0
0
(9)
45
0
0
16
0
0
(3)
58
0
6
(1)
63
50
1,229
898
989
1,170
1,261
1,263
1,354
520
(133)
(5)
0
0
(54)
328
0
1
105
6
2
(18)
424
0
54
(10)
468
378
1,189
872
886
1,124
1,138
1,246
1,260
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
124
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions, except per ounce information in dollars)
Footnote
Carlina
Cortezb
Turquoise
Ridge
Long
Canyon
Phoenixa
For the year ended 12/31/2022
Nevada
Gold
Minesc
Hemlo
North
America
Cost of sales applicable to
gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration
and evaluation costs
Minesite sustaining
capital expenditures
Sustaining capital leases
Rehabilitation – accretion and
amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and evaluation
and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis
(000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce
(on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce
(on a co-product basis)
All-in costs per ounce
All-in costs per ounce
(on a co-product basis)
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
1,728
(312)
(2)
0
(34)
(531)
849
0
20
497
1
10
(204)
1,173
0
0
0
1,173
968
1,069
877
878
1,212
1,213
1,212
850
(253)
(2)
0
0
(229)
366
0
8
305
0
11
(125)
565
0
104
(40)
629
449
1,164
815
818
1,258
1,261
1,400
647
(178)
(2)
0
0
(180)
287
0
7
109
0
2
(45)
360
0
50
(20)
390
278
1,434
1,035
1,039
1,296
1,300
1,405
1,213
1,403
1,409
115
(76)
0
0
0
(15)
24
0
1
0
0
1
(1)
25
0
0
0
25
55
1,282
435
436
454
455
454
455
353
(75)
(139)
0
20
3,699
(895)
(145)
0
(14)
(61)
(1,018)
98
0
0
22
2
3
1,627
0
37
949
5
27
(11)
114
(394)
2,251
0
0
0
0
201
(78)
215
(28)
(1)
0
0
0
186
0
4
42
2
2
0
236
0
0
0
3,914
(923)
(146)
0
(14)
(1,018)
1,813
0
41
991
7
29
(394)
2,487
0
201
(78)
114
2,374
236
2,610
106
2,039
914
1,603
1,074
1,763
1,074
1,856
1,210
876
917
1,214
1,255
1,280
132
1,628
1,409
1,415
1,788
1,794
1,789
1,988
1,238
912
951
1,252
1,291
1,314
1,763
1,321
1,795
1,353
125
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions, except per ounce information in dollars)
Cost of sales applicable to gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and evaluation costs
Minesite sustaining capital expenditures
Sustaining capital leases
Rehabilitation – accretion and amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and evaluation and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis (000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce (on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce (on a co-product basis)
All-in costs per ounce
All-in costs per ounce (on a co-product basis)
Footnote
Pueblo Viejo
For the year ended 12/31/2022
Latin America &
Asia Pacific
Veladero
801
(242)
(45)
0
0
(205)
309
0
1
207
0
5
(85)
437
2
377
(152)
664
426
1,132
725
788
1,026
1,089
1,558
1,621
325
(120)
(4)
(23)
0
0
178
0
2
120
3
2
0
305
0
33
0
338
199
1,628
890
913
1,528
1,551
1,695
1,718
1,126
(362)
(49)
(23)
0
(205)
487
0
3
327
3
7
(85)
742
2
410
(152)
1,002
625
1,306
777
827
1,189
1,239
1,636
1,686
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
126
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS Footnote
Loulo-
Gounkoto
North
Mara
Tongon
For the year ended 12/31/2022
Africa &
Middle East
Bulyanhulu
($ millions, except per ounce information in dollars)
Cost of sales applicable to gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and evaluation costs
Minesite sustaining capital expenditures
Sustaining capital leases
Rehabilitation – accretion
and amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and evaluation
and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis (000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce
(on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce
(on a co-product basis)
All-in costs per ounce
All-in costs per ounce
(on a co-product basis)
790
(257)
0
0
0
(107)
426
0
9
190
2
3
(40)
590
0
133
(27)
696
548
1,153
778
778
1,076
1,076
1,270
Kibali
413
(178)
(1)
0
0
0
234
0
3
70
6
1
0
314
0
22
0
336
332
1,243
703
707
948
952
1,013
309
(73)
(2)
0
0
(38)
196
0
4
81
0
6
(14)
273
0
74
(12)
335
265
979
741
747
1,028
1,034
1,265
347
(69)
(1)
0
0
(28)
249
0
4
31
2
1
(4)
283
0
1
0
284
178
1,748
1,396
1,399
1,592
1,595
1,595
1,270
1,017
1,271
1,598
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
295
(60)
(24)
0
0
(34)
177
0
3
66
0
1
(11)
236
0
30
(5)
261
205
1,211
868
966
1,156
1,254
1,278
1,376
2,154
(637)
(28)
0
0
(207)
1,282
0
23
438
10
12
(69)
1,696
0
260
(44)
1,912
1,528
1,219
839
854
1,111
1,126
1,252
1,267
127
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions, except per ounce information in dollars)
Footnote
Carlina
Cortezb
Turquoise
Ridge
Long
Canyon
Phoenixa
For the year ended 12/31/2021
Nevada
Gold
Minesc
Hemlo
North
America
Cost of sales applicable to
gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration
and evaluation costs
Minesite sustaining capital
expenditures
Sustaining capital leases
Rehabilitation – accretion and
amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and
evaluation and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis
(000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce
(on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce
(on a co-product basis)
All-in costs per ounce
All-in costs per ounce
(on a co-product basis)
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
1,451
(276)
(2)
0
0
(451)
722
0
22
424
2
10
(177)
1,003
0
0
0
1,003
922
968
782
784
1,087
1,089
1,087
927
(294)
(3)
0
0
(243)
387
0
10
192
0
11
(86)
514
0
96
(37)
573
508
1,122
763
767
1,013
1,017
1,129
615
(200)
(5)
0
0
(158)
252
0
1
77
0
1
(30)
301
0
56
(22)
335
337
1,122
749
757
892
900
993
1,089
1,133
1,001
193
(144)
0
0
0
(19)
30
0
4
8
0
1
(5)
38
0
0
0
38
161
739
188
188
238
238
238
238
346
(89)
(194)
0
9
(28)
44
0
1
20
1
2
(9)
59
0
0
0
3,532
(1,003)
(204)
0
9
(899)
1,435
0
41
746
5
25
(318)
1,934
0
158
(61)
257
(45)
(1)
0
0
0
211
0
2
82
2
2
0
3,789
(1,048)
(205)
0
9
(899)
1,646
0
43
828
7
27
(318)
299
2,233
0
0
0
0
158
(61)
59
2,031
299
2,330
111
1,922
398
1,428
533
1,563
533
2,039
1,072
705
764
949
1,008
997
152
1,693
1,388
1,394
1,970
1,976
1,970
2,191
1,115
752
807
1,020
1,075
1,064
1,563
1,056
1,976
1,119
128
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions, except per ounce information in dollars)
Cost of sales applicable to gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and evaluation costs
Minesite sustaining capital expenditures
Sustaining capital leases
Rehabilitation – accretion and amortization
(operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and evaluation and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis (000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce (on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce (on a co-product basis)
All-in costs per ounce
All-in costs per ounce (on a co-product basis)
Footnote
Pueblo Viejo
For the year ended 12/31/2021
Latin America
& Asia Pacific
Veladero
739
(234)
(58)
0
0
(178)
269
0
4
160
0
8
(71)
370
1
358
(144)
585
497
896
541
610
745
814
1,178
1,247
262
(85)
(7)
0
0
0
170
0
1
136
1
2
0
310
0
6
0
316
206
1,256
816
850
1,493
1,527
1,520
1,554
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
1,001
(319)
(65)
0
0
(178)
439
0
5
296
1
10
(71)
680
1
364
(144)
901
703
1,028
622
680
969
1,027
1,282
1,340
129
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions, except per ounce information in dollars)
Footnote
Loulo-
Gounkoto
Kibali
North
Mara
Tongon
For the year ended 12/31/2021
Africa &
Middle East
Buzwagil
Bulyanhulu
Cost of sales applicable
to gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and
evaluation costs
Minesite sustaining
capital expenditures
Sustaining capital leases
Rehabilitation – accretion and
amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and evaluation
and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis (000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce
(on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce
(on a co-product basis)
All-in costs per ounce
All-in costs per ounce
(on a co-product basis)
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
732
(278)
0
0
0
(91)
363
0
18
199
2
4
(44)
542
0
98
(19)
621
558
1,049
650
650
970
970
1,111
1,111
373
(141)
(2)
0
0
0
230
0
5
54
10
1
0
300
0
16
0
316
367
1,016
627
631
818
822
861
865
296
(56)
(2)
0
0
(38)
200
0
0
62
0
6
(11)
257
0
32
(5)
284
257
966
777
784
1,001
1,008
1,105
310
(84)
(1)
0
0
(23)
202
0
3
18
2
1
(3)
223
0
0
0
223
185
1,504
1,093
1,096
1,208
1,211
1,206
212
(57)
(15)
0
0
(22)
118
0
0
34
0
1
(5)
148
0
49
(8)
189
166
1,079
709
787
891
969
1,138
65
(2)
0
0
0
(10)
53
0
0
0
0
0
0
53
0
0
0
53
41
1,334
1,284
1,277
1,291
1,284
1,291
1,112
1,209
1,216
1,284
1,988
(618)
(20)
0
0
(184)
1,166
0
26
367
14
13
(63)
1,523
0
195
(32)
1,686
1,574
1,092
740
751
968
979
1,070
1,081
130
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions, except per ounce information in dollars)
Footnote
Carlina
Cortezb
Turquoise
Ridge
Long
Canyon
Phoenixa
For the year ended 12/31/2020
Nevada
Gold
Minesc
Hemlo
North
America
Cost of sales applicable
to gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration
and evaluation costs
Minesite sustaining
capital expenditures
Sustaining capital leases
Rehabilitation – accretion and
amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and
evaluation and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis
(000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce
(on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce
(on a co-product basis)
All-in costs per ounce
All-in costs per ounce
(on a co-product basis)
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
1,624
(306)
(2)
0
0
(507)
809
0
30
381
1
8
(163)
1,066
0
0
0
1,066
1,024
976
790
791
1,041
1,042
1,041
764
(221)
(2)
0
0
(208)
333
0
7
235
0
13
(98)
490
0
146
(56)
580
491
958
678
680
998
1,000
1,179
1,042
1,181
575
(184)
(7)
0
0
(148)
236
0
7
39
0
0
(18)
264
0
44
(17)
291
332
1,064
711
723
798
810
879
891
227
(165)
0
0
0
(24)
38
0
8
35
0
2
(17)
66
0
0
0
66
161
869
236
238
405
407
405
407
365
(94)
(137)
0
0
(51)
83
0
0
29
1
3
(13)
103
0
0
0
3,555
(970)
(148)
0
0
(938)
1,499
0
52
748
4
26
(321)
2,008
0
200
(76)
281
(44)
(1)
0
0
0
236
0
1
79
0
1
0
3,836
(1,014)
(149)
0
0
(938)
1,735
0
53
827
4
27
(321)
317
2,325
0
0
0
0
200
(76)
103
2,132
317
2,449
126
1,772
649
1,315
814
1,480
814
2,134
1,029
702
745
941
984
998
224
1,256
1,056
1,060
1,423
1,427
1,424
2,358
1,050
735
774
987
1,026
1,039
1,480
1,041
1,428
1,078
131
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions, except per ounce information in dollars)
For the year ended 12/31/2020
Footnote
Pueblo Viejo
Veladero
Porgeram
Latin America &
Asia Pacific
Cost of sales applicable to gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and evaluation costs
Minesite sustaining capital expenditures
Sustaining capital leases
Rehabilitation – accretion and amortization
(operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and evaluation and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis (000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce (on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce (on a co-product basis)
All-in costs per ounce
All-in costs per ounce (on a co-product basis)
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
k,l
735
(224)
(57)
0
0
(182)
272
0
3
132
0
6
(56)
357
1
91
(37)
412
541
819
504
568
660
724
761
825
213
(69)
(5)
0
0
0
139
0
0
98
2
4
0
243
0
15
0
258
186
1,151
748
777
1,308
1,337
1,390
1,419
106
(25)
(1)
0
0
0
80
0
2
11
3
0
0
96
0
0
0
96
87
1,225
928
934
1,115
1,121
1,116
1,122
1,054
(318)
(63)
0
0
(182)
491
0
5
241
5
10
(56)
696
1
106
(37)
766
814
938
604
654
856
906
942
992
132
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions, except per ounce information in dollars)
For the year ended 12/31/2020
Footnote
Loulo-
Gounkoto
Kibali
North
Mara
Tongon
Bulyanhulu
Buzwagil
Africa &
Middle East
Cost of sales applicable
to gold production
Depreciation
By-product credits
Non-recurring items
Other
Non-controlling interests
Total cash costs
General & administrative costs
Minesite exploration and
evaluation costs
Minesite sustaining
capital expenditures
Sustaining capital leases
Rehabilitation – accretion and
amortization (operating sites)
Non-controlling interests
All-in sustaining costs
Project exploration and evaluation
and project costs
Project capital expenditures
Non-controlling interests
All-in costs
Ounces sold – equity basis (000s ounces)
Cost of sales per ounce
Total cash costs per ounce
Total cash costs per ounce
(on a co-product basis)
All-in sustaining costs per ounce
All-in sustaining costs per ounce
(on a co-product basis)
All-in costs per ounce
All-in costs per ounce
(on a co-product basis)
d
e
f
g
h
f
g
i,j
j
j,k
j
j,k
j
j,k
719
(267)
0
0
0
(90)
362
0
11
213
3
3
(46)
546
0
19
(4)
561
542
1,060
666
666
1,006
1,006
1,034
1,034
397
(174)
(1)
0
0
0
222
0
2
49
9
1
0
283
0
2
0
285
364
1,091
608
612
778
782
782
786
318
(91)
(2)
0
0
(36)
189
0
0
68
0
4
(12)
249
0
35
(5)
279
269
992
702
709
929
936
1,039
1,046
380
(167)
0
0
0
(22)
191
0
3
8
2
0
(1)
203
0
0
0
203
255
1,334
747
748
791
792
791
792
184
(72)
(10)
0
0
(16)
86
0
0
7
0
1
(1)
93
0
69
(11)
151
103
1,499
832
913
895
976
1,459
1,540
211
(11)
(22)
0
0
(28)
150
0
0
1
1
0
0
2,209
(782)
(35)
0
0
(192)
1,200
0
16
346
15
9
(60)
152
1,526
0
0
0
152
174
1,021
859
968
871
980
871
980
0
125
(20)
1,631
1,707
1,119
701
719
893
911
954
972
a.
On September 7, 2021, NGM announced it had entered into an Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo
that NGM did not already own in exchange for the Lone Tree and Buffalo Mountain properties and infrastructure. Operating results within
our 61.5% interest in Carlin includes NGM’s 60% interest in South Arturo up until May 30, 2021, and 100% interest thereafter, and operating
results within our 61.5% interest in Phoenix includes Lone Tree up until May 30, 2021, reflecting the terms of the Exchange Agreement which
closed on October 14, 2021.
b.
Starting in the first quarter of 2021, Goldrush is reported as part of Cortez as it is operated by Cortez management. Comparative periods have
been restated to include Goldrush.
c.
These results represent our 61.5% interest in Carlin (including NGM’s 60% interest in South Arturo up until May 30, 2021 and 100% interest
thereafter, reflecting the terms of the Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not already
own in exchange for the Lone Tree and Buffalo Mountain properties and infrastructure, which closed on October 14, 2021), Cortez, Turquoise
Ridge, Phoenix and Long Canyon.
d. Non-recurring items
These costs are not indicative of our cost of production and have been excluded from the calculation of total cash costs. Non-recurring items
at Veladero for the three months ended and year ended December 31, 2022 relate to a net realizable value impairment of leach pad inventory.
e. Other
Other adjustments for the three month period ended September 30, 2022 and the year ended December 31, 2022 at Carlin include the removal
of total cash costs and by-product credits associated with Emigrant starting the second quarter of 2022, which is producing incidental ounces.
f. Exploration and evaluation costs
Exploration, evaluation and project expenses are presented as minesite sustaining if it supports current mine operations and project if it relates
to future projects. Refer to page 107 of this MD&A.
133
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
g. Capital expenditures
Capital expenditures are related to our gold sites only and are split between minesite sustaining and project capital expenditures. Project capital
expenditures are capital spending at new projects and major, discrete projects at existing operations intended to increase net present value
through higher production or longer mine life. Significant projects in the current year are the expansion project at Pueblo Viejo, construction of
the Third Shaft at Turquoise Ridge, and the Veladero Phase 7 leach pad expansion. Refer to page 106 of this MD&A.
h. Rehabilitation – accretion and amortization
Includes depreciation on the assets related to rehabilitation provisions of our gold operations and accretion on the rehabilitation provision of
our gold operations, split between operating and non-operating sites.
i. Cost of sales per ounce
Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance)
divided by ounces sold (both on an attributable basis using Barrick’s ownership share).
j. Per ounce figures
Cost of sales per ounce, total cash costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce may not calculate based on
amounts presented in this table due to rounding.
k. Co-product costs per ounce
Total cash costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce presented on a co-product basis removes the impact
of by-product credits of our gold production (net of non-controlling interest) calculated as:
($ millions)
By-product credits
Non-controlling interest
By-product credits
(net of non-controlling interest)
($ millions)
By-product credits
Non-controlling interest
By-product credits
(net of non-controlling interest)
($ millions)
By-product credits
Non-controlling interest
By-product credits
(net of non-controlling interest)
($ millions)
By-product credits
Non-controlling interest
By-product credits
(net of non-controlling interest)
Carlina
Cortezb
Turquoise
Ridge
Long
Canyon
Phoenixa
1
0
1
0
0
0
0
0
0
0
0
0
44
(17)
27
For the three months ended 12/31/22
Nevada
Gold
Minesc
45
(17)
28
Hemlo
Pueblo
Viejo
1
0
1
12
(5)
7
Veladero
Loulo-
Gounkoto
Kibali
North
Mara
Tongon Bulyanhulu
For the three months ended 12/31/22
1
0
1
0
0
0
0
0
0
1
0
1
1
0
1
6
(1)
5
Carlina
Cortezb
Turquoise
Ridge
Long
Canyon
Phoenixa
1
(1)
0
0
0
0
1
(1)
0
0
0
0
31
(12)
19
For the three months ended 9/30/22
Nevada
Gold
Minesc
33
(14)
19
Hemlo
Pueblo
Viejo
0
0
0
10
(4)
6
Veladero
Loulo-
Gounkoto
Kibali
North
Mara
Tongon Bulyanhulu
For the three months ended 9/30/22
1
0
1
0
0
0
0
0
0
0
0
0
0
0
0
5
(1)
4
134
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
($ millions)
Carlina
Cortezb
Turquoise
Ridge
Long
Canyon Phoenixa
For the year ended 12/31/22
Nevada
Gold
Minesc
Hemlo
Pueblo
Viejo
By-product credits
Non-controlling interest
By-product credits (net of
non-controlling interest)
2
(1)
1
2
(1)
1
2
(1)
1
0
0
0
139
(54)
145
(57)
85
88
1
0
1
45
(18)
27
By-product credits
Non-controlling interest
By-product credits (net of
non-controlling interest)
Veladero
Loulo-
Gounkoto
Kibali
North
Mara
Tongon Bulyanhulu
For the year ended 12/31/22
4
0
4
0
0
0
1
0
1
2
0
2
1
0
1
24
(4)
20
Carlina
Cortezb
Turquoise
Ridge
Long
Canyon Phoenixa
For the year ended 12/31/21
Nevada
Gold
Minesc
Hemlo
Pueblo
Viejo
By-product credits
Non-controlling interest
By-product credits (net of
non-controlling interest)
2
(1)
1
3
(1)
2
5
(2)
3
0
0
0
194
(75)
204
(79)
119
125
1
0
1
58
(23)
35
By-product credits
Non-controlling interest
By-product credits (net of
non-controlling interest)
Veladero
Loulo-
Gounkoto
Kibali
North
Mara
Tongon
Bulyanhulu
Buzwagil
For the year ended 12/31/21
7
0
7
0
0
0
2
0
2
2
0
2
1
0
1
15
(2)
13
0
0
0
Carlina
Cortezb
Turquoise
Ridge
Long
Canyon Phoenixa
For the year ended 12/31/20
Nevada
Gold
Minesc
Hemlo
Pueblo
Viejo
By-product credits
Non-controlling interest
By-product credits (net of
non-controlling interest)
2
(1)
1
2
(1)
1
7
(3)
4
0
0
0
137
(53)
148
(57)
84
91
1
0
1
57
(23)
34
By-product credits
Non-controlling interest
By-product credits (net of
non-controlling interest)
Veladero
Porgeram
Loulo-
Gounkoto
Kibali
North
Mara
Tongon
Bulyanhulu
Buzwagil
5
0
5
1
0
1
0
0
0
1
0
1
2
0
2
0
0
0
10
(2)
8
22
(4)
18
For the year ended 12/31/20
l.
With the end of mining at Buzwagi in the third quarter of 2021, as previously reported, we have ceased to include production or non-GAAP
cost metrics for Buzwagi from October 1, 2021 onwards.
m. As Porgera was placed on care and maintenance on April 25, 2020, no operating data or per ounce data was provided for the three month
periods ended December 31, 2022 and September 30, 2022 and the years ended December 31, 2022 and December 31, 2021.
135
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS RECONCILIATION OF COPPER COST OF SALES TO C1 CASH COSTS AND ALL-IN SUSTAINING COSTS,
INCLUDING ON A PER POUND BASIS
($ millions, except per pound information in dollars)
12/31/22
9/30/22
12/31/22
12/31/21
12/31/20
For the three months ended
For the years ended
Cost of sales
Depreciation/amortization
Treatment and refinement charges
Cash cost of sales applicable to equity method investments
Less: royalties
By-product credits
C1 cash cost of sales
General & administrative costs
Rehabilitation – accretion and amortization
Royalties
Minesite exploration and evaluation costs
Minesite sustaining capital expenditures
Sustaining leases
All-in sustaining costs
Pounds sold – consolidated basis (millions pounds)
Cost of sales per pounda,b
C1 cash costs per pounda
All-in sustaining costs per pounda
197
(92)
47
90
(16)
(3)
223
8
2
16
6
139
2
396
99
3.19
2.25
3.98
172
(59)
54
81
(23)
(2)
223
4
0
23
8
115
1
374
120
2.30
1.86
3.13
666
(223)
199
317
(103)
(14)
842
30
4
103
22
410
6
569
(197)
161
313
(103)
(15)
728
17
6
103
14
234
9
1,417
1,111
445
2.43
1.89
3.18
423
2.32
1.72
2.62
556
(208)
157
267
(54)
(15)
703
18
8
54
5
223
9
1,020
457
2.02
1.54
2.23
a. Cost of sales per pound, C1 cash costs per pound and all-in sustaining costs per pound may not calculate based on amounts presented in this table due to rounding.
b. 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 using Barrick’s
ownership share).
136
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
RECONCILIATION OF COPPER COST OF SALES TO C1 CASH COSTS AND ALL-IN SUSTAINING COSTS, INCLUDING
ON A PER POUND BASIS, BY OPERATING SITE
($ millions, except per pound information in dollars)
Cost of sales
Depreciation/amortization
Treatment and refinement charges
Less: royalties
By-product credits
C1 cash cost of sales
Rehabilitation – accretion and amortization
Royalties
Minesite exploration and evaluation costs
Minesite sustaining capital expenditures
Sustaining leases
All-in sustaining costs
Pounds sold – consolidated basis (millions pounds)
Cost of sales per pounda,b
C1 cash costs per pounda
All-in sustaining costs per pounda
12/31/22
For the three months ended
9/30/22
Zaldívar
Lumwana
Jabal
Sayid
Zaldívar
Lumwana
Jabal
Sayid
86
(21)
0
0
0
65
0
0
2
19
1
87
24
3.55
2.69
3.60
197
(92)
40
(16)
0
129
1
16
4
118
1
269
55
3.56
2.34
4.86
34
(9)
7
0
(3)
29
1
0
0
2
0
32
20
1.72
1.42
1.54
76
(18)
0
0
0
58
0
0
3
8
1
70
24
3.20
2.45
2.94
172
(59)
50
(23)
0
140
0
23
5
106
0
274
79
2.19
1.78
3.50
28
(5)
4
0
(2)
25
0
0
0
1
0
26
17
1.58
1.41
1.52
($ millions, except per pound
information in dollars)
12/31/22
12/31/21
12/31/20
For the years ended
Cost of sales
Depreciation/amortization
Treatment and refinement charges
Less: royalties
By-product credits
C1 cash cost of sales
Rehabilitation – accretion
and amortization
Royalties
Minesite exploration and
evaluation costs
Minesite sustaining capital
expenditures
Sustaining leases
All-in sustaining costs
Pounds sold – consolidated basis
(millions pounds)
Cost of sales per pounda,b
C1 cash costs per pounda
All-in sustaining costs per pounda
Zaldívar Lumwana
305
(74)
0
0
0
231
0
0
11
44
3
289
98
3.12
2.36
2.95
666
(223)
179
(103)
0
519
3
103
11
360
3
999
275
2.42
1.89
3.63
Jabal
Sayid
110
(24)
20
0
(14)
92
1
0
0
6
0
99
72
1.52
1.26
1.36
Zaldívar Lumwana
Jabal
Sayid
Zaldívar Lumwana
314
(79)
0
0
0
235
1
0
13
37
4
290
98
3.19
2.38
2.94
569
(197)
140
(103)
0
409
5
103
0
189
3
709
253
2.25
1.62
2.80
99
(21)
21
0
(15)
84
0
0
1
8
2
95
72
1.38
1.18
1.33
262
(72)
1
0
0
191
0
0
4
39
5
239
106
2.46
1.79
2.25
556
(208)
137
(54)
0
431
8
54
0
175
4
672
277
2.01
1.56
2.43
Jabal
Sayid
104
(27)
19
0
(15)
81
0
0
1
9
0
91
74
1.42
1.11
1.24
a. Cost of sales per pound, C1 cash costs per pound and all-in sustaining costs per pound may not calculate based on amounts presented in this table due to rounding.
b. 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 using Barrick’s
ownership share).
137
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
EBITDA and Adjusted EBITDA
EBITDA is a non-GAAP financial measure, which excludes the following
from net earnings:
Income tax expense;
•
• Finance costs;
• Finance income; and
• Depreciation.
Management believes that EBITDA is a valuable indicator of our
ability to generate liquidity by producing operating cash flow to fund
working capital needs, service debt obligations, and fund capital
expenditures. Management uses EBITDA for this purpose. EBITDA is
also frequently used by investors and analysts for valuation purposes
whereby EBITDA is multiplied by a factor or “EBITDA multiple” that is
based on an observed or inferred relationship between EBITDA and
market values to determine the approximate total enterprise value of
a company.
Adjusted EBITDA removes the effect of impairment charges;
acquisition/disposition gains/losses;
foreign currency translation
gains/losses; and other expense adjustments. We also remove the
impact of the income tax expense, finance costs, finance income and
depreciation incurred in our equity method accounted investments.
We believe these items provide a greater level of consistency with the
adjusting items included in our adjusted net earnings reconciliation,
with the exception that these amounts are adjusted to remove
any impact on finance costs/income, income tax expense and/or
depreciation as they do not affect EBITDA. We believe this additional
information will assist analysts, investors and other stakeholders of
Barrick in better understanding our ability to generate liquidity from
our full business, including equity method investments, by excluding
these amounts from the calculation as they are not indicative of the
performance of our core mining business and do not necessarily
reflect the underlying operating results for the periods presented.
EBITDA and adjusted EBITDA are intended to provide additional
information to investors and analysts and do not have any standardized
definition under IFRS, and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. EBITDA and adjusted EBITDA exclude the impact of cash costs
of financing activities and taxes, and the effects of changes in operating
working capital balances, and therefore are not necessarily indicative
of operating profit or cash flow from operations as determined under
IFRS. Other companies may calculate EBITDA and adjusted EBITDA
differently.
RECONCILIATION OF NET EARNINGS TO EBITDA AND ADJUSTED EBITDA
($ millions)
Net (loss) earnings
Income tax expense
Finance costs, neta
Depreciation
EBITDA
Impairment charges (reversals) of non-current assetsb
Acquisition/disposition gainsc
Loss on currency translation
Other expense (income) adjustmentsd
Income tax expense, net finance costsa,
and depreciation from equity investees
Adjusted EBITDA
For the three months ended
For the years ended
12/31/22
9/30/22
12/31/22
12/31/21
12/31/20
(816)
(131)
31
604
(312)
1,642
(319)
4
126
145
1,286
410
215
55
457
1,137
24
(64)
3
(27)
82
1,155
1,017
664
235
1,997
3,913
1,671
(405)
16
17
401
5,613
3,288
1,344
307
2,102
7,041
(63)
(213)
29
73
391
7,258
3,614
1,332
306
2,208
7,460
(269)
(180)
50
71
360
7,492
a. Finance costs exclude accretion.
b. Net impairment charges for the three month period and year ended December 31, 2022 primarily relate to a goodwill impairment at Loulo-Gounkoto, and non-
current asset impairments at Veladero and Long Canyon, partially offset by an impairment reversal at Reko Diq. Net impairment charges for the prior year mainly
relate to non-current asset reversals at Lagunas Norte.
c. Acquisition/disposition gains for the three month period and year ended December 31, 2022 primarily relate to a gain as Barrick’s interest in the Reko Diq project
increased from 37.5% to 50%. The year ended December 31, 2022 was further impacted by the sale of a portfolio of royalties to Maverix Metals Inc. and the sale
of a portfolio of royalties by NGM to Gold Royalty Corp. Acquisition/disposition gains for the prior year primarily relate to the gain on the sale of Lone Tree.
d. Other expense adjustments for the three month period and year ended December 31, 2022 mainly relate to a net realizable value impairment of leach pad inventory
at Veladero, care and maintenance expenses at Porgera and supplies obsolescence write-off at Bulyanhulu and North Mara. The prior year was impacted by care
and maintenance expenses at Porgera and a $25 million litigation settlement.
138
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
RECONCILIATION OF SEGMENT INCOME TO SEGMENT EBITDA
($ millions)
Income
Depreciation
EBITDA
($ millions)
Income
Depreciation
EBITDA
($ millions)
Income
Depreciation
EBITDA
($ millions)
Income
Depreciation
EBITDA
($ millions)
Income
Depreciation
EBITDA
Carlina
(61.5%)
Cortezb
(61.5%)
171
55
226
63
59
122
Turquoise
Ridge
(61.5%)
Nevada
Gold
Minesc
(61.5%)
Pueblo
Viejo
(60%)
Loulo-
Gounkoto
(80%)
Kibali
(45%)
Veladero
(50%)
17
32
49
264
162
426
47
36
83
70
55
125
7
90
97
(34)
47
13
North
Mara
(84%)
25
18
43
Bulyanhulu
(84%)
13
12
25
For the three months ended 12/31/22
For the three months ended 9/30/22
Carlina
(61.5%)
Cortezb
(61.5%)
123
45
168
62
28
90
Turquoise
Ridge
(61.5%)
Nevada
Gold
Minesc
(61.5%)
Pueblo
Viejo
(60%)
Loulo-
Gounkoto
(80%)
Kibali
(45%)
Veladero
(50%)
11
25
36
215
117
332
70
39
109
60
48
108
45
27
72
12
23
35
North
Mara
(84%)
39
15
54
Bulyanhulu
(84%)
27
12
39
For the year ended 12/31/22
Carlina
(61.5%)
Cortezb
(61.5%)
685
192
877
277
155
432
Turquoise
Ridge
(61.5%)
Nevada
Gold
Minesc
(61.5%)
Pueblo
Viejo
(60%)
Loulo-
Gounkoto
(80%)
Kibali
(45%)
Veladero
(50%)
98
110
208
1,144
551
1,695
265
146
411
342
205
547
142
178
320
32
120
152
Carlina
(61.5%)
Cortezb
(61.5%)
733
170
903
337
181
518
Turquoise
Ridge
(61.5%)
Nevada
Gold
Minesc
(61.5%)
Pueblo
Viejo
(60%)
Loulo-
Gounkoto
(80%)
Kibali
(45%)
Veladero
(50%)
229
123
352
1,675
630
2,305
445
142
587
380
222
602
278
141
419
118
85
203
North
Mara
(84%)
177
61
238
Bulyanhulu
(84%)
118
50
168
For the year ended 12/31/21
North
Mara
(84%)
214
47
261
Bulyanhulu
(84%)
122
48
170
For the year ended 12/31/20
Carlina
(61.5%)
Cortezb
(61.5%)
795
188
983
385
138
523
Turquoise
Ridge
(61.5%)
Nevada
Gold
Minesc
(61.5%)
Pueblo
Viejo
(60%)
Loulo-
Gounkoto
(80%)
Kibali
(45%)
Veladero
(50%)
229
113
342
1,636
596
2,232
508
136
644
358
214
572
244
174
418
114
69
183
North
Mara
(84%)
214
76
290
Bulyanhulu
(84%)
27
60
87
a. On September 7, 2021, NGM announced it had entered into an Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not
already own in exchange for the Lone Tree and Buffalo Mountain properties and infrastructure. Operating results within our 61.5% interest in Carlin includes NGM’s
60% interest in South Arturo up until May 30, 2021, and 100% interest thereafter, and operating results within our 61.5% interest in Phoenix includes Lone Tree up
until May 30, 2021, reflecting the terms of the Exchange Agreement which closed on October 14, 2021.
b. Starting in the first quarter of 2021, Goldrush is reported as part of Cortez as it is operated by Cortez management. Comparative periods have been restated to
include Goldrush.
c. These results represent our 61.5% interest in Carlin (including NGM’s 60% interest in South Arturo up until May 30, 2021 and 100% interest thereafter, reflecting
the terms of the Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not already own in exchange for the Lone Tree and
Buffalo Mountain properties and infrastructure, which closed on October 14, 2021), Cortez, Turquoise Ridge, Phoenix and Long Canyon.
Realized Price
Realized price is a non-GAAP financial measure which excludes from
sales:
• Treatment and refining charges; and
• Cumulative catch-up adjustment to revenue relating to our
streaming arrangements.
We believe this provides investors and analysts with a more accurate
measure with which to compare to market gold prices and to assess
our gold sales performance. For those reasons, management
believes that this measure provides a more accurate reflection of our
Company’s past performance and is a better indicator of its expected
performance in future periods.
The realized price measure is intended to provide additional
information, and does not have any standardized definition under
IFRS and should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS.
The measure is not necessarily indicative of sales as determined
under IFRS. Other companies may calculate this measure differently.
The following table reconciles realized prices to the most directly
comparable IFRS measure.
139
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS RECONCILIATION OF SALES TO REALIZED PRICE PER OUNCE/POUND
($ millions, except
per ounce/pound
information in dollars)
Sales
Sales applicable to
non-controlling interests
Sales applicable to equity
method investmentsa,b
Sales applicable to sites
in closure or care and
maintenancec
Treatment and refining charges
Otherd
Revenues – as adjusted
Ounces/pounds sold
(000s ounces/millions pounds)c
For the three months ended
Gold
Copper
For the years ended
Gold
Copper
12/31/22
9/30/22 12/31/22
9/30/22 12/31/22 12/31/21 12/31/20 12/31/22 12/31/21 12/31/20
2,535
2,277
170
200
9,920
10,738
11,670
868
962
697
(785)
(700)
0
0
(3,051)
(3,323)
(3,494)
0
0
0
164
152
160
134
597
660
648
646
707
483
(11)
15
0
(14)
3
0
1,918
1,718
1,111
997
0
47
0
377
99
0
54
0
388
120
(55)
23
0
(88)
10
2
(170)
7
13
0
199
0
0
161
0
0
157
0
7,434
7,999
8,674
1,713
1,830
1,337
4,141
4,468
4,879
445
423
457
Realized gold/copper price
per ounce/pounde
1,728
1,722
3.81
3.24
1,795
1,790
1,778
3.85
4.32
2.92
a. Represents sales of $164 million and $597 million, respectively, for the three months and year ended December 31, 2022 (September 30, 2022: $152 million; 2021:
$661 million; 2020: $648 million) applicable to our 45% equity method investment in Kibali and $nil and $nil, respectively (September 30, 2022: $nil; 2021: $nil; 2020:
$nil) applicable to our 40% equity method investment in Morila up until its divestiture in November 2020 for gold. Represents sales of $91 million and $390 million,
respectively, for the three months and year ended December 31, 2022 (September 30, 2022: $82 million; 2021: $423 million; 2020: $298 million) applicable to our
50% equity method investment in Zaldívar and $74 million and $275 million, respectively (September 30, 2022: $57 million; 2021: $305 million; 2020: $204 million)
applicable to our 50% equity method investment in Jabal Sayid for copper.
b. Sales applicable to equity method investments are net of treatment and refinement charges.
c. Excludes Pierina, Morila up until its divestiture in November 2020, Lagunas Norte up until its divestiture in June 2021, and Buzwagi starting in the fourth quarter of
2021. Some of these assets are producing incidental ounces while in closure or care and maintenance.
d. Represents cumulative catch-up adjustment to revenue relating to our streaming arrangements. Refer to note 2f to the Financial Statements for more information.
e. Realized price per ounce/pound may not calculate based on amounts presented in this table.
TECHNICAL INFORMATION
The scientific and technical information contained in this MD&A has
been reviewed and approved by Craig Fiddes – SME-RM, Lead
– Resource Modeling, Nevada Gold Mines; Chad Yuhasz, P.Geo,
Mineral Resource Manager, Latin America & Asia Pacific; Richard
Peattie, MPhil, FAusIMM, Mineral Resources Manager: Africa and
Middle East; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral
Resource Management and Evaluation Executive; John Steele, CIM,
Metallurgy, Engineering and Capital Projects Executive; and Rob
Krcmarov, FAusIMM, Technical Advisor to Barrick – each a “Qualified
Person” as defined in National Instrument 43-101 – Standards of
Disclosure for Mineral Projects.
All mineral reserve and mineral resource estimates are estimated in
accordance with National Instrument 43-101 – Standards of Disclosure
for Mineral Projects. Unless otherwise noted, such mineral reserve and
mineral resource estimates are as of December 31, 2022.
140
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
ENDNOTES
1
2
3
4
5
6
7
8
9
A Tier One Gold Asset is an asset with a reserve potential to deliver
a minimum 10-year life, annual production of at least 500,000
ounces of gold and total cash costs per ounce over the mine life
that are in the lower half of the industry cost curve.
A Tier Two Gold Asset is an asset with a reserve potential to deliver
a minimum 10-year life, annual production of at least 250,000
ounces of gold and total cash costs per ounce over the mine life
that are in the lower half of the industry cost curve.
A Tier One Copper Asset is an asset with a reserve potential of
greater than five million tonnes of contained copper and C1 cash
costs per pound over the mine life that are in the lower half of the
industry cost curve.
A Strategic Asset is an asset which in the opinion of Barrick, has
the potential to deliver significant unrealized value in the future.
Currently consists of Barrick’s Lumwana mine and Zaldívar and
Jabal Sayid copper joint ventures.
Further information on these non-GAAP financial measures,
including detailed reconciliations, is included on pages 114–140
of this MD&A.
Gold cost of sales per ounce is calculated as cost of sales
across our gold operations (excluding sites in closure or care and
maintenance) divided by ounces sold (both on an attributable
basis using 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 using
Barrick’s ownership share).
TRIFR is a ratio calculated as follows: number of reportable
injuries x 1,000,000 hours divided by the total number of hours
worked. Reportable injuries include fatalities, lost time injuries,
restricted duty injuries, and medically treated injuries. LTIFR is a
ratio calculated as follows: number of lost time injuries x 1,000,000
hours divided by the total number of hours worked.
Class 1 – High Significance is defined as an incident that causes
significant negative impacts on human health or the environment
or an incident that extends onto publicly accessible land and has
the potential to cause significant adverse impact to surrounding
communities, livestock or wildlife.
12 Estimated
in accordance with National
10 Preliminary figures and subject to external assurance.
11 All mineral resource and mineral reserve estimates of tonnes,
Au oz, Ag oz and Cu lb are reported to the second significant digit.
All measured and indicated mineral resource estimates of grade
and all proven and probable mineral reserve estimates of grade
for Au g/t, Ag g/t and Cu % are reported to two decimal places. All
inferred mineral resource estimates of grade for Au g/t, Ag g/t and
Cu % are reported to one decimal place. 2022 polymetallic mineral
resources and mineral reserves are estimated using the combined
value of gold, copper & silver and accordingly are reported as
Gold, Copper & Silver mineral resources and mineral reserves.
Instrument 43-101
– Standards of Disclosure for Mineral Projects as required by
Canadian securities regulatory authorities. Estimates are as of
December 31, 2022, unless otherwise noted. Proven reserves of
260 million tonnes grading 2.26 g/t, representing 19 million ounces
of gold, and 390 million tonnes grading 0.40%, representing 3,500
million pounds of copper. Probable reserves of 1,200 million
tonnes grading 1.53 g/t, representing 57 million ounces of gold,
and 1,100 million tonnes grading 0.37%, representing 8,800
million pounds of copper. Measured resources of 480 million
tonnes grading 2.13 g/t, representing 33 million ounces of gold,
and 700 million tonnes grading 0.39%, representing 6,000 million
pounds of copper. Indicated resources of 4,700 million tonnes
grading 0.96 g/t, representing 150 million ounces of gold, and
4,500 million tonnes grading 0.39%, representing 38,000 million
pounds of copper. Inferred resources of 1,500 million tonnes
grading 0.8 g/t, representing 42 million ounces of gold, and 1,800
million tonnes grading 0.4%, representing 15,000 million pounds
of copper. North America proven reserves of 52 million tonnes
grading 5.24 g/t, representing 8.7 million ounces of gold; probable
reserves of 330 million tonnes grading 2.12 g/t, representing
23 million ounces of gold; measured resources of 110 million
tonnes grading 4.18 g/t, representing 15 million ounces of gold;
indicated resources of 940 million tonnes grading 1.93 g/t,
representing 58 million ounces of gold; and inferred resources of
300 million tonnes grading 1.8 g/t, representing 17 million ounces
of gold. Reko Diq indicated resources of 1,800 million tonnes
grading 0.26 g/t, representing 15 million ounces of gold, and
1,900 million tonnes grading 0.44%, representing 18,000 million
pounds of copper; and inferred resources of 570 million tonnes
grading 0.2 g/t, representing 3.7 million ounces of gold, and
590 million tonnes grading 0.4%, representing 4,600 million
pounds of copper. Pueblo Viejo proven reserves of 35 million
tonnes grading 2.29 g/t, representing 2.6 million ounces of
gold; probable reserves of 140 million tonnes grading 2.16 g/t,
representing 9.7 million ounces of gold; measured resources of
46 million tonnes grading 2.08 g/t, representing 3.1 million ounces
of gold; indicated resources of 190 million tonnes grading 1.99 g/t,
representing 12 million ounces of gold; and inferred resources of
4.6 million tonnes grading 1.8 g/t, representing 0.26 million ounces
of gold. Complete mineral reserve and mineral resource data for
all mines and projects referenced in this MD&A, including tonnes,
grades, and ounces, can be found on pages 155–163 of Barrick’s
Annual Report 2022.
13 Estimated
in accordance with National
Instrument 43-101
– Standards of Disclosure for Mineral Projects as required by
Canadian securities regulatory authorities. Estimates are as of
December 31, 2021, unless otherwise noted. Proven reserves of
240 million tonnes grading 2.20 g/t, representing 17 million ounces
of gold, and 380 million tonnes grading 0.41%, representing 3,400
million pounds of copper. Probable reserves of 1,000 million
tonnes grading 1.60 g/t, representing 53 million ounces of gold,
and 1,100 million tonnes grading 0.37%, representing 8,800
million pounds of copper. Measured resources of 490 million
tonnes grading 2.05 g/t, representing 32 million ounces of gold,
and 680 million tonnes grading 0.38%, representing 5,700 million
pounds of copper. Indicated resources of 2,800 million tonnes
grading 1.40 g/t, representing 130 million ounces of gold, and
2,500 million tonnes grading 0.34%, representing 19,000 million
pounds of copper. Inferred resources of 1,000 million tonnes
grading 1.3 g/t, representing 42 million ounces of gold, and 450
million tonnes grading 0.2%, representing 2,100 million pounds
of copper. Complete 2021 mineral reserve and mineral resource
data for all mines and projects referenced in this MD&A, including
tonnes, grades, and ounces, can be found on pages 34-47 of
Barrick’s Annual Information Form/Form 40-F for the year ended
December 31, 2021 on file with Canadian provincial securities
regulatory authorities and the U.S. Securities and Exchange
Commission.
14 A Technical Report to support the Pueblo Viejo mine life extension
and process plant expansion project, including the pre-feasibility
study for the new Naranjo tailings storage facility, will be prepared
in accordance with Form 43-101F1 and filed on SEDAR within
45 days of Barrick’s press release dated as of February 9, 2023,
entitled “Focus on Tier One Assets Delivers Significant Increase
in Resources and Reserves, Underpinning Industry-Leading
Production Profile Growth”. For further information with respect
to the key assumptions, parameters and risks associated with
the Pueblo Viejo mine life extension and process plant expansion
project, the mineral reserve and resource estimates included
therein and other technical information, please refer to the Technical
Report to be made available on SEDAR at www.sedar.com.
15 See the Technical Report on the Turquoise Ridge mine, dated
March 25, 2020, and filed on SEDAR at www.sedar.com and
EDGAR at www.sec.gov on March 25, 2020.
141
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS 16 North Turf (Miramar) Significant Interceptsa
Drill Holeb
Azimuth
NTC-22022
NTC-22024
NTC-22026
NTC-22027
NTC-22030
NTC-22031A
NTC-22033
NTC-22035
NTC-22038
NTC-22040
NTC-22045
80
190
145
62
90
95
270
120
260
100
32
Drill Results from Q4 2022
Dip
(30)
(85)
(72)
(50)
(51)
(27)
(66)
(65)
(52)
(71)
(46)
Interval (m)
163.1 – 177.4
181.4 – 201.2
150.0 – 152.4
108.8 – 114.3
119.3 – 124.4
222.5 – 224.6
260.0 – 263.7
136.6 – 139.6
221.9 – 225.2
246.3 – 270.7
290.5 – 293.5
300.2 – 305.7
130.8 – 133.8
119.5 – 126.8
145.7 – 152.4
30.5 – 35.1
53.9 – 57.9
86.9 – 109.7
128.0 – 132.6
55.5 – 61.3
291.7 – 294.7
Width (m)c
True Width (m)c
Au (g/t)
14.3
19.8
2.4
5.5
5.0
2.1
3.7
3.0
3.4
24.4
3.0
5.5
3.0
7.3
6.7
4.6
4.0
22.9
4.6
5.8
3.0
10.1
14.0
2.4
5.5
4.6
1.8
2.8
3.0
3.3
24.0
3.0
5.4
2.9
5.2
4.7
4.3
3.7
21.5
4.6
2.9
2.9
7.58
8.43
21.33
5.52
12.10
4.35
3.96
9.46
7.34
6.79
4.80
5.49
5.73
13.06
17.59
4.20
6.05
6.02
6.19
13.34
8.37
a. All intercepts calculated using a 3.4 g/t Au cutoff and are uncapped; minimum intercept width is 3.0 m; internal dilution is less than 20% total width.
b. Carlin Trend drill hole nomenclature: Project area (CGX – Leeville, NLX – North Leeville Exploration, NTC – North Turf Core, NLX – North Leeville Growth, LUC
– Leeville Underground Core) followed by the year (22 for 2022) then hole number.
c. True width for LUC, NTC and NLX drillholes have been estimated based on the latest geological and ore controls model and it is subject to refinement as
additional data becomes available. True width of the intercepts for CGX drill holes is uncertain at this stage.
The drilling results for Leeville contained in this MD&A have been prepared in accordance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists and re-checked
by the project manager. Sample preparation and analyses are conducted by an independent laboratory, ALS Minerals. Procedures are
employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures, data
verification and assay protocols used in connection with drilling and sampling on the Carlin Trend conform to industry accepted quality
control methods.
17 North Leeville (Fallon) Significant Interceptsa
Drill Holeb
NLX-22013B
NLX-22020
Azimuth
306
90
Dip
(79)
(75)
Interval (m)
811.7 – 839.1
821.1 – 825.7
Width (m)c
27.4
4.6
True Width (m)c
26.3
4.5
Au (g/t)
19.57
4.91
Drill Results from Q4 2022
a. All intercepts calculated using a 3.4 g/t Au cutoff and are uncapped; minimum intercept width is 3.0 m; internal dilution is less than 20% total width.
b. Carlin Trend drill hole nomenclature: Project area (CGX – Greater Leeville Exploration, NLX – North Leeville Exploration, NTC – North Turf Core, NLX – North
Leeville Exploration, NTC – North Turf Core, NLX – North Leeville Growth, LUC – Leeville Underground Core) followed by the year (22 for 2022) then hole
number.
c. True width for LUC, NTC and NLX drillholes have been estimated based on the latest geological and ore controls model and it is subject to refinement as
additional data becomes available. True width of the intercepts for CGX drill holes is uncertain at this stage.
The drilling results for Leeville contained in this MD&A have been prepared in accordance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists and re-checked
by the project manager. Sample preparation and analyses are conducted by an independent laboratory, ALS Minerals. Procedures are
employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures, data
verification and assay protocols used in connection with drilling and sampling on the Carlin Trend conform to industry accepted quality
control methods.
142
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
18 Carlin Significant Interceptsa
Drill Results from Q4 2022
Drill Holeb
LBB-22006
LBB-22007
WSF-22002
WSF-22003
WSF-22005
Azimuth
330
40
77
273
301
Dip
(75)
(75)
(76)
(81)
(69)
Interval (m)
709.3 – 710.2
Width (m)c
0.9
Au (g/t)
3.63
653.6 – 654.7
655.9 – 657.0
642.8 – 643.6
1.1
1.1
0.8
3.67
6.85
3.48
a. All intercepts calculated using a 3.4 g/t Au cutoff and are uncapped; minimum intercept width is 0.8 m; internal dilution is less than 20% total width.
b. Carlin Trend drill hole nomenclature: Project area (LBB – Little Boulder Basin, WSF – Western Spur) followed by the year (22 for 2022) then hole number.
c. True width of intercepts are uncertain at this stage.
The drilling results for the Carlin Trend contained in this MD&A have been prepared in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists
and re-checked by the project manager. Sample preparation and analyses are conducted by an independent laboratory, ALS Minerals.
Procedures are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance
procedures, data verification and assay protocols used in connection with drilling and sampling on the Carlin Trend conform to industry
accepted quality control methods.
19 Ren Resource Significant Interceptsa
Drill Holeb
Azimuth
Dip
MRC-22005
MRC-22009
MRC-22010
70
250
238
(23)
(19)
(17)
MRC-22011
262
(27)
Drill Results from Q4 2022
Interval (m)
286.8 – 289.9
296.0 – 300.1
306.2 – 316.1
351.7 – 354.8
362.4 – 365.5
310.3 – 317.0
281.9 – 284.5
316.7 – 319.7
334.7 – 345.3
359.1 – 362.1
369.7 – 374.3
Width (m)c
3.1
True Width (m)c
2.1
Au (g/t)
7.17
4.1
9.9
3.1
3.1
9.8
2.6
3.0
10.6
3.0
4.6
3.0
4.6
2.1
2.1
4.0
1.5
3.0
4.6
3.0
3.0
9.91
11.62d
11.14
6.79
5.01
3.98d
28.08d
5.07d
6.03
4.42
a. All intercepts calculated using a 3.4 g/t Au cutoff and are uncapped; minimum intercept width is 3.0 m; internal dilution is less than 20% total width.
b. Carlin Trend drill hole nomenclature: Project (MRC – Ren) followed by hole number.
c. True width has been estimated based on the latest geological and ore controls model and it is subject to refinement as additional data becomes available.
d. Greater than 20% dilution
The drilling results for Ren contained in this MD&A have been prepared in accordance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists and re-checked
by the project manager. Sample preparation and analyses are conducted by an independent laboratory, ALS Minerals. Procedures are
employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures, data
verification and assay protocols used in connection with drilling and sampling on Ren conform to industry accepted quality control methods.
20 West El Niño Significant Interceptsa
Drill Holeb
SEC-22001
SEC-22004
SEC-22008
Azimuth
120
300
239
Dip
(75)
(35)
(25)
Interval (m)
68.6 – 71.6
210.6 – 224.6
69.2 – 89.61
Width (m)c
3.0
True Width (m)c
2.9
14.0
20.4
14.0
Au (g/t)
19.12
51.89
6.51
Drill Results from Q4 2022
a. All intercepts calculated using a 3.4 g/t Au cutoff and are uncapped; minimum intercept width is 3.0 m; internal dilution is less than 20% total width.
b. Carlin Trend drill hole nomenclature: Project Phase (SEC) followed by two digit year and hole number.
c. True width of intercepts uncertain at this stage.
The drilling results for the Carlin Trend property contained in this MD&A have been prepared in accordance with National Instrument 43-101
– Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists
and re-checked by the project manager. Sample preparation and analyses are conducted by American Assay Labs, an independent
laboratory. Industry accepted best practices for preparation and fire assaying procedures are utilized to determine gold content. Procedures
are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures, data
verification and assay protocols used in connection with drilling and sampling on the Carlin Trend property conform to industry accepted
quality control methods.
143
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
21 CHUG Hanson Significant Interceptsa
Drill Results from Q4 2022
Drill Holeb
Azimuth
Dip
CMX-22013
233
CMX-22014
CMX-22015
CMX-22016
CMX-22017
CMX-22018
CMX-22019
244
257
216
204
220
219
44
44
39
42
42
49
45
Interval (m)
346.8 – 350.8
358.1 – 359.8
381.6 – 387.1
415.3 – 417
460 – 461.4
488.6 – 498.8
514.3 – 516.3
523 – 525.4
466.3 – 467.8
479.4 – 480.6
519 – 521.9
568.4 – 593.1
596.8 – 599.5
601 – 602.4
515.7 – 527.9
381.4 – 384.3
385.9 – 387.4
607.5 – 609.1
610.3 – 611.7
616.3 – 636.4
Width (m)c
4
1.7
5.5
1.7
1.4
10.2
2
2.4
1.5
2
2.9
24.7
2.7
1.4
12.2
2.9
1.5
1.6
1.4
20.1
Au (g/t)
4.75
17.21
5.86
4.90
6.51
5.03
6.75
8.96
8.61
11.78
5.13
6.67
5.75
3.55
7.60
11.23
3.46
4.53
4.97
9.64
a. All intercepts calculated using a 3.42 g/t Au cutoff and are uncapped; minimum intercept width is 1.4 m; internal dilution less than 20% total width.
b. Cortez drill hole nomenclature: Project (CMX – CHUG Minex) followed by the year (22 for 2022) then hole number.
c. True widths of intercepts are uncertain at this stage.
The drilling results for Cortez contained in this MD&A have been prepared in accordance with National Instrument 43-101 – Standards
of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists and
re-checked by the project manager. Sample preparation and analyses are conducted by ALS Minerals, an independent laboratory. Procedures
are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures, data
verification and assay protocols used in connection with drilling and sampling at Cortez conform to industry accepted quality control methods.
144
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
22 Robertson Significant Interceptsa
Drill Holeb
AHC-22009
Azimuth
240
DTL-21004
DTL-21007
PYC-21033
PYC-22005
280
280
300
125
GPC-22036
273
GPC-22047
GPC-22048
209
0
Dip
(75)
(65)
(58)
(70)
(77)
(50)
(88)
(90)
WPC-22017
272
(69)
Drill Results from Q4 2022
Interval (m)
106.1 – 113.7
100.0 – 109.1
124.4 – 138.3
148.9 – 162.8
152.1 – 164.1
19.1 – 23.6
25.3 – 28.3
68.0 – 77.0
34.0 – 52.7
11.0 – 21.6
25.8 – 32.2
36.1 – 60.4
2.7 – 6.8
48.8 – 52.8
139.9 – 143.3
216.1 – 259.4
3.6 – 12.6
217.3 – 296.1
101.7 – 107.0
124.2 – 128.5
145.4 – 160.6
170.5 – 175.3
Width (m)c
7.6
True Width (m)c
9.1
13.9
13.9
12.0
4.6
3.0
9.0
18.7
10.7
6.4
24.2
4.1
4.0
3.4
43.3
9.1
78.8
5.3
4.3
15.2
4.7
3.7
3.6
3.1
38.6
8.1
69.8
Au (g/t)
5.38
0.51
0.51
15.57
2.17
3.28
2.38
0.42
0.70
0.37
0.23
0.47
0.44
0.23
0.44
1.84
1.59
2.88
0.47
8.52
0.55
3.47
a. All intercepts calculated using a 0.17 g/t Au cutoff and are uncapped; minimum intercept width is 3.0 m; internal dilution is less than 20% total width.
b. Robertson drill hole nomenclature: Project area: PYC: Porphyry Core, DTL: Distal, AHW: Altenburg Hill West, RMC: Robertson Material Characterization, AHC:
Altenburg Hill Core, GPC: Gold Pan COre, WPC: West Porphyry COre, 21 indicates drill year of 2021 and 22 indicates drill year of 2022.
c. True width of intercepts uncertain at this stage except where noted.
The drilling results for Robertson contained in this MD&A have been prepared in accordance with National Instrument 43-101 – Standards
of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists and re-
checked by the project manager. Sample preparation and analyses are conducted by ALS Minerals and SGS S.A., independent laboratories.
Procedures are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance
procedures, data verification and assay protocols used in connection with drilling and sampling on Robertson conform to industry accepted
quality control methods.
23 Fourmile Significant Interceptsa
Drill Holeb
Azimuth
Dip
FM22-179D
330
FM22-180D
239
84
84
Drill Results from Q4 2022
Interval (m)
1156.7 – 1174.4
1198.0 – 1206.2
1342.0 – 1352.1
1461.7 – 1492.0
1142.7 – 1146.7
1313.7 – 1353.3
1361.2 – 1366.6
Width (m)c
18.0
True Width (m)
8.2
10.1
31.7
4.0
39.6
5.4
Au (g/t)
29.67
8.5
13.36
33.67
13.62
12.71
17.04
a. All intercepts calculated using a 3.4 g/t Au cutoff and are uncapped; minimum intercept width is 3.0 meters; internal dilution is less than 20% total width.
b. Fourmile drill hole nomenclature: Project area: FM: Fourmile, followed by the year (22 for 2022) then hole number.
c. True widths of intercepts are uncertain at this stage.
The drilling results for Fourmile contained in this MD&A have been prepared in accordance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists and re-checked
by the project manager. Sample preparation and analyses are conducted by ALS Minerals and ALS Minerals, an independent laboratory.
Procedures are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance
procedures, data verification and assay protocols used in connection with drilling and sampling at Fourmile conform to industry accepted
quality control methods.
145
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
24 Turquoise Ridge Significant Interceptsa
Drill Holeb
TUM-22162
TUM-22219
TUM-22701A
TSM-22100
TUM-22405
TUM-22813
TUM-22816
Azimuth
11
334
51
356
292
190
222
Drill Results from Q4 2022
Dip
(25)
(42)
(63)
(82)
(31)
(90)
(30)
Interval (m)
150.3 – 185.1
199.9 – 234.1
93.6 – 114.9
135.7 – 143.0
279.3 – 288.8
329.6 – 339.9
53.8 – 63.8
55.8 – 65.9
Width (m)c
34.8
True Width (m)c
15.2
Au (g/t)
33.11
34.2
21.3
7.3
9.5
10.4
10.0
10.1
14.6
20.5
6.7
8.8
8.2
9.2
8.7
12.93
24.57
22.39
12.33
9.38
28.00
20.77
a. All intercepts calculated using a 3.4 g/t Au cutoff and are uncapped; minimum intercept width is 1 m; internal dilution is less than 20% total width.
b. Turquoise Ridge drill hole nomenclature: Project area: TSM: Turquoise Surface Minex, TUM: Turquoise Underground Minex, First two numbers indicate year
drilled.
c. True widths of intercepts have been estimated based on current geological model.
The drilling results for Turquoise Ridge contained in this MD&A have been prepared in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists
and re-checked by the project manager. Sample preparation and analyses are conducted by ALS Minerals, an independent laboratory.
Procedures are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance
procedures, data verification and assay protocols used in connection with drilling and sampling on Turquoise Ridge conform to industry
accepted quality control methods.
25 Hemlo Significant Intercepts
Drill Results from Q4 2022
Drill Holea
1152295
11522104
90352207
90352208
90352209
90352227
90352227
90352229
W2230
W2231.1
Azimuth
133
192
175
179
179
129
129
138
136
147
Dip
7
(51)
(58)
(34)
(65)
(62)
(62)
(53)
(45)
(45)
Interval (m)
84.4 – 88.2
50.0 – 54.0
410.0 – 416.0
194.8 – 199.2
405.3 – 409.4
329.0 – 333.0
663.0 – 666.4
330.0 – 333.0
349.0 – 352.0
386.4 – 393.6
True Width (m)b
2.7
3.5
4.6
4.1
3.2
2.8
2.6
2.7
2.7
6.5
Au (g/t)c
13.82
10.57
6.06
7.60
9.12
9.85
6.78
6.38
10.74
4.40
a. Hemlo drill hole nomenclature: Surface hole nomenclature is defined by (W-surface) followed by the year (e.g. 22 for 2022) then hole number. Underground
hole nomenclature is defined by level (e.g. 115 for the 9115m level) then hole number.
b. True widths of intercepts are estimated using the angle to core axis.
c. All intercepts calculated using a 2.68 g/t Au cutoff. 9035 holes are capped to 80 g/t Au, 115 and W holes are capped to 30 g/t Au; minimum intercept width is
2.50m; internal dilution is less than 42% total width.
The drilling results for Hemlo contained in this MD&A have been prepared in accordance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists and re-checked
by the project manager. Sample preparation and analyses are conducted by ALS Minerals, an independent laboratory. Procedures are
employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures, data
verification and assay protocols used in connection with drilling and sampling at Hemlo conform to industry accepted quality control methods.
146
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
26 Arroyo del Rey – Pueblo Viejo District Significant Interceptsa
Drill Holeb
DPV22-872d
Azimuth
50
Dip
(55)
Interval (m)
143 – 144.85
Width (m)c
1.85
Au (g/t)
10.93
Drill Results from Q4 2022
a. No internal dilution applied.
b. Arroyo del Rey drill hole nomenclature: Drill system (DPV: Dominican Pueblo Viejo) followed by the year (22: 2022) then hole number.
c. True widths of intercepts are estimated using the core axis and are uncertain at this stage.
d. Drill method is diamond drilling.
The drilling results for Arroyo del Rey contained in this MD&A have been prepared in accordance with National Instrument 43-101 – Standards
of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists and
re-checked by the project manager. Sample preparation and analyses are conducted by ALS Minerals, an independent laboratory. Procedures
are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures,
data verification and assay protocols used in connection with drilling and sampling at Arroyo del Rey conform to industry accepted quality
control methods.
27 Mejita Extension – Pueblo Viejo District Significant Interceptsa
Drill Holeb
DPV22-875d
Azimuth
50
Dip
(55)
Interval (m) Width (m)c
133.5 – 138.5
5
Au (g/t)
1.68
Interval (m)
133.5 – 135
Includingc
Width (m)
1.5
Au (g/t)
3.7
Drill Results from Q4 2022
a. No internal dilution applied.
b. Mejita Extension drill hole nomenclature: Drill system (DPV: Dominican Pueblo Viejo) followed by the year (22: 2022) then hole number.
c. True widths of intercepts are estimated using the core axis and are uncertain at this stage.
d. Drill method is diamond drilling.
The drilling results for Mejita extension contained in this MD&A have been prepared in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists
and re-checked by the project manager. Sample preparation and analyses are conducted by ALS Minerals, an independent laboratory.
Procedures are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance
procedures, data verification and assay protocols used in connection with drilling and sampling at Mejita extension conform to industry
accepted quality control methods.
28 Morro Escondido – Veladero District Significant Interceptsa
Drill Results from Q4 2022
Drill Holeb
Azimuth
Dip
Interval (m) Width (m)c
Au (g/t)
Interval (m)
0 – 11.65
42.6 – 63.8
DDH-MES-01
0
(90)
0 – 107.8
107.80
0.74
89.8 – 99.75
DDH-MES-02
310
DDH-MES-03
310
(65)
(65)
0 – 128
128.0
4.5 – 80
75.5
0.75
0.52
DDH-MES-04
270
(65)
43 – 84
41.00
1.64
0 – 49
0 – 9.3
76.8 – 89
4.5 – 24
43 – 51.6
43 – 47
62.4 – 69
81 – 82.5
Includingc
Width (m)
11.65
Au (g/t)
1.76
21.20
9.95
49.00
9.30
12.20
19.50
8.60
4.00
6.60
1.50
1.23
1.00
1.30
4.91
1.08
1.04
1.02
8.27
3.20
1.90
a. All intercepts calculated using a 0.25 g/t Au cutoff and are uncapped; minimum intercept width is 15 meters; maximum internal dilution of 15 m below 0.25 g/t Au.
b. Morro Escondido drill hole nomenclature: Drill system Diamond Drill Hole (DDH), Project Name (Morro Escondido – MES) followed by hole number.
c. True widths of intercepts are estimated using the core axis and are uncertain at this stage.
d. Drill method is diamond drilling.
The drilling results for Morro Escondido contained in this MD&A have been prepared in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists
and re-checked by the project manager. Sample preparation and analyses are conducted by ALS Minerals, an independent laboratory.
Procedures are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance
procedures, data verification and assay protocols used in connection with drilling and sampling at Morro Escondido conform to industry
accepted quality control methods.
147
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
29 Bambadji Significant Interceptsa
Drill Holeb
FADH001
WARC001
WARC002
WARC004
WARC006
WARC007
WARC008
WARC009
WARC010
WARC011
KBTRC009
KBTRC011
Azimuth
60
55
235
70
90
90
90
90
90
90
270
90
Dip
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
Drill Results from Q3 2022
Interval (m) Width (m)c
168.3 – 184.3
16.3
Au (g/t)
1.21
Interval (m)
Including
Width (m)
Au (g/t)
30 – 37
7.0
4.96
16 – 35
53 – 55
28 – 42
76 – 86
177 – 186
116 – 124
23 – 48
13 – 22
123 – 132
76 – 82
55 – 102
55 – 87
19.0
2.0
14.0
10.0
9.0
8.0
25.0
9.0
9.0
6.0
47.0
32.0
0.74
2.43
2.71
0.65
0.76
1.33
1.02
0.69
1.17
1.38
3.76
4.08
a. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum intercept width is 2 meters; internal dilution is equal or less than 2 meters total width.
b. Drill hole nomenclature: FA (Fatima), WA (Wari) and KBT (Kabetea) followed by type of drilling RC (Reverse Circulation) and DH Diamond Drilling).
c. True widths uncertain at this stage.
The drilling results for the Bambadji property contained in this MD&A have been prepared in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists
and re-checked by the project manager. Sample preparation and analyses are conducted by SGS Bamako, an independent laboratory.
Procedures are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance
procedures, data verification and assay protocols used in connection with drilling and sampling on the Bambadji property conform to industry
accepted quality control methods.
148
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
30 Loulo-Gounkoto Significant Interceptsa
Drill Results from Q4 2022
Interval (m) Width (m)c
Drill Holeb
DBDH015
DBDH016
FSRC013
FSRC013
FSRC013
FSRC013
FSRC013
FSRC014
FSRC014
FSRC014
FSRC016
FSRC018
GNAC0031
GNAC0039
GNAC0043
GNAC0044
GNAC0045
GNAC0063
GNAC0064
GNAC0064
GNAC0064
GNAC0065
GNAC0074
GNRC016
GNRC017
GNRC017
GNRC018
GWDH02
GWDH02
GWRCDH01
TRC019
TRC020
TRC022
TRC022
TRC027
YRDH039
YRDH039
YRDH040
YRDH041
YRDH041
YRDH041
YRDH041
YRSAC0010
YRSAC0010
YRSAC0010
YRSAC0010
YRSAC0024
YRSRC018
Azimuth
51
43.78
270
270
270
270
270
270
270
270
270
Dip
-61
241.25 – 244.8
(62.08)
196.45 – 199.2
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
86 – 93
117 – 119
127 – 129
135 – 137
146 – 150
66 – 68
74 – 76
99 – 101
30 – 34
268.92
(52.72)
123 – 125
270
270
270
270
270
270
270
270
270
270
270
90
90
90
90
116.38
116.38
110.65
270
270
270
270
268.19
251.37
251.37
249.89
268.62
268.62
268.62
268.62
280
280
280
280
280
270
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
50 – 52
30 – 32
34 – 40
7 – 13
25 – 29
40 – 42
21 – 24
29 – 38
46 – 48
24 – 26
29 – 31
110 – 112
53 – 60
141 – 143
10 – 13
(69.59)
(69.59)
(84.7)
389.05 – 392.05
404.05 – 415
160.1 – 164
(55)
(55)
(55)
(55)
(53.39)
(54.97)
(54.97)
(55)
(54.71)
(54.71)
(54.71)
(54.71)
(50)
(50)
(50)
(50)
(50)
(55)
256 – 258
102 – 108
69 – 74
82 – 87
38 – 40
63.8 – 67.15
69 – 76.1
35.05 – 37.9
24 – 26
40.8 – 43.65
53.25 – 56.95
98.9 – 101.85
16 – 26
32 – 50
59 – 70
72 – 77
25 – 30
112 – 119
3.55
2.75
7
2
2
2
4
2
2
2
4
2
2
2
6
6
4
2
3
9
2
2
2
2
7
2
3
3
10.95
3.9
2
6
5
5
2
3.35
7.1
2.85
2
2.85
3.7
2.95
10
18
11
5
5
7
Interval (m)
Includingd
Width (m)
Au (g/t)
Au (g/t)
1.23
1.10
0.75
0.74
0.62
0.84
0.87
0.68
0.89
0.95
1.21
0.86
2.11
0.62
0.79
3.81
0.93
0.57
0.86
1.74
0.70
0.93
0.71
1.35
1.36
0.76
1.14
0.78
8.19
1.21
0.85
2.29
1.19
1.36
1.24
1.38
1.73
1.88
1.8
2.79
0.91
1.04
10.05
1.83
2.08
1.26
1.79
1.12
409.1 – 415
5.9
12.63
17 – 24
38 – 42
7
4
13.69
4.98
a. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum intercept width is 2 meters; internal dilution is equal to or less than 2 meters
total width.
b. Loulo-Gounkoto drill hole nomenclature: prospect initial GN (Gara North), YR (Yalea Ridge), GW (Gara West), DB (Domain Boundary), FS (Faraba South), TR (Toronto),
YRS (Yalea Ridge South) followed by type of drilling AC (Air Core), RC (Reverse Circulation), DH (Diamond Drilling), RCDH (Reverse Circulation with Diamond tail).
c. True widths uncertain at this stage.
d. All intercepts calculated using a 3.0 g/t Au cutoff and are uncapped; minimum intercept width is 2 meters; internal dilution is equal to or less than 2 meters total width.
149
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
The drilling results for the Loulo-Gounkoto property contained in this MD&A have been prepared in accordance with National Instrument
43-101 – Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff
geologists and re-checked by the project manager. Sample preparation and analyses are conducted by SGS, an independent laboratory.
Industry accepted best practices for preparation and fire assaying procedures are utilized to determine gold content. Procedures are employed
to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures, data verification and
assay protocols used in connection with drilling and sampling on the Loulo property conform to industry accepted quality control methods.
31 Nielle Significant Interceptsa
Drill Holeb
KORC020
KORC021
KORC023A
KORC028
KORDH002
JBMDH002
JBMDH002
Azimuth
272
265
270
272
273
302
302
Drill Results from Q4 2022
Dip
(51)
(51)
(50)
(50)
(50)
(53)
(53)
Interval (m)
88-98
Width (m)c
10.00
57-69
68-81
135-142
103-106
78 – 84
237.19-250.6
12.00
13.00
7.00
3.00
6.00
13.41
Au (g/t)
2.49
2.28
1.41
6.54
4.05
2.70
2.74
a. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum intercept width is 2 meters; internal dilution is equal to or less than 2 meters width.
b. Nielle drill hole nomenclature: prospect initial KOR (Koro A2), JBM (Jubula Main), followed by type of drilling AC (Aircore), RC (Reverse Circulation), DH
(Diamond Hole).
c. True widths uncertain at this stage.
The drilling results for the Nielle property contained in this MD&A have been prepared in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists
and re-checked by the project manager. Sample preparation and analyses are conducted by SGS, an independent laboratory. Procedures
are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures, data
verification and assay protocols used in connection with drilling and sampling on the Nielle property conform to industry accepted quality
control methods.
150
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
32 Kibali Significant Interceptsa
Drill Holeb
KVDD0049
Azimuth
320
KVDD0050A
MDD079W1
MDD081
ADD024
MRRC0008
MRRC0009
MMRC0071
ZBRC0008
ZBRC0009
ZBRC0010
ZBRC0011
ZBRC0012
ZBRC0013
ZBRC0014
320
311
311
279
279
292
135
238
238
238
238
238
238
155
260
260
260
260
260
260
260
260
260
260
260
260
260
260
260
260
260
260
260
260
260
260
260
260
260
Drill Results from Q4 2022
Dip
(65)
(65)
(54)
(54)
(74.5)
(74.5)
(65)
(68)
(55)
(55)
(55)
(55)
(55)
(55)
(59.5)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
Interval (m)
513.25 – 515.05
521.23 – 532.40
314.50 – 357.50
373.93 – 375.93
414.60 – 425.50
430.38 – 438.20
361.80 – 365.60
180.00 – 192.00
8.00 – 10.00
32.00 – 34.00
41.00 – 46.00
55.00 – 58.00
37.00 – 39.00
43.00 – 48.00
51.00 – 53.00
111.00 – 113.00
142.00 – 148.00
157.00 – 160.00
166.00 – 173.00
76.00 – 78.00
88.00 – 103.00
118.00 – 121.00
136.00 – 139.00
142.00 – 144.00
7.00 – 9.00
32.00 – 35.00
49.00 – 60.00
3.00 – 5.00
17.00 – 19.00
28.00 – 45.00
66.00 – 69.00
1.00 – 9.00
16.00 – 18.00
28.00 – 35.00
109.00 – 111.00
114.00 – 120.00
23.00 – 28.00
31.00 – 34.00
37.00 – 52.00
Width (m)c Au (g/t)
Interval (m)
Includingd
Width (m)
Au (g/t)
2.8
11.2
16.4
2
10.9
7.82
3.8
12
2
2
5
3
2
5
2
2
6
3
7
2
15
3
3
2
2
3
11
2
2
17
3
8
2
7
2
6
5
3
15
1.51
2.78
1.25
1.84
1.7
11.19
0.76
2.46
1.6
0.94
7
0.55
1.37
1.34
1.2
0.77
0.86
1.39
4.09
2.61
2.13
1.48
0.78
0.51
0.71
0.95
2.68
1.21
0.6
0.72
0.69
0.8
1.18
0.52
1.33
1.22
1.58
0.68
2.43
525.23 – 529.23
351.00 – 353.20
4
2.2
4.87
4.13
180.00 – 182.00
183.00 – 185.00
44.00 – 45.00
44.00 – 45.00
172.00 – 173.00
98.00 – 103.00
2
2
1
1
1
5
6.66
3.96
31.43
3.22
16.4
4.61
172.00 – 177.00
5
4.33
26.00 – 27.00
42.00 – 45.00
50.00 – 52.00
1
3
2
3.54
5.25
3.96
151
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS 32 Kibali Significant Interceptsa (continued)
Drill Results from Q4 2022
Drill Holeb
ZBRC0015
Azimuth
260
Width (m)c Au (g/t)
Dip
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(50)
Interval (m)
21.00 – 25.00
31.00 – 37.00
43.00 – 48.00
55.00 – 57.00
97.00 – 99.00
105.00 – 108.00
111.00 – 114.00
124.00 – 130.00
144.00 – 157.00
30.00 – 50.00
260
260
260
260
260
260
260
260
260
260
(50)
99.00 – 121.00
260
260
260
260
260
260
260
260
260
290
290
155
295
290
290
290
290
(50)
161.00 – 171.00
(50)
193.00 – 200.00
(50)
(50)
(50)
(50)
(50)
(50)
(50)
(65)
(66)
(69)
(68)
(65)
(65)
(65)
(65)
24.00 – 36.00
141.00 – 144.00
153.00 – 157.00
162.00 – 179.00
82.00 – 92.00
95.00 – 112.00
149.00 – 156.00
189.9 – 197.0
195.0 – 199.69
145.0 – 152.0
87.0 – 104.92
231.2 – 251.0
231.5 – 245.0
260.0 – 285.3
159.0 – 167.0
4
6
5
2
2
3
3
6
13
20
22
10
7
12
3
4
17
10
17
7
8.1
4.69
7
16.9
19.8
13.5
25.3
8
1
1
0.8
0.6
0.82
0.8
1.5
1.83
1.25
1.07
Interval (m)
23.00 – 25.00
32.00 – 33.00
43.00 – 44.00
124.00 – 125.00
124.00 – 126.00
34.00 – 36.00
38.00 – 39.00
41.00 – 43.00
47.00 – 48.00
1.66
102.00 – 104.00
108.00 – 112.00
119.00 – 120.00
0.78
165.00 – 166.00
170.00 – 171.00
2.32
193.00 – 194.00
196.00 – 197.00
31.00 – 32.00
33.00 – 34.00
171.00 – 172.00
97.00 – 98.00
108.00 – 109.00
153.00 – 155.00
2.21
1.13
1.1
1.25
0.5
0.88
2.39
11.6
3.46
3.47
4.29
6.15
2.78
3.19
4.4
ZBRC0016
ZBRC0017
ZBRC0018
ZBRC0019
ZBRC0020
ZBRC0021
ORDD0031
ORDD0032
ORDD0034
ORDD0043
ORDD0057
ORDD0058
ORDD0060
ORDD0062
Includingd
Width (m)
2
1
1
1
2
2
1
2
1
2
4
1
1
1
1
1
1
1
1
1
1
2
Au (g/t)
1.48
2.38
1.13
3.25
4.15
2.19
3.16
2
2.15
2.53
4.17
3.31
2.58
1.91
3.36
8.15
4.43
9.32
2.84
2.09
2.17
5.69
a. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum intercept width is 2 meters; internal dilution is equal to or less than 25% total width.
b. Kibali drill hole nomenclature: prospect initial (KCD=Karagba-Chauffeur-Durba; MM=Memekazi; KV=Kalimva; A=Agabarabo; MR=Makoro; M=Mengu;
ZB=Zambula) followed by type of drilling (RC=Reverse Circulation, DD=Diamond, GC=Grade control) with no designation of the year. KCDU=KCD Underground.
c. True width of intercepts are uncertain at this stage.
d. Weighted average is calculated by fence using significant intercepts, over the strike length.
The drilling results for the Kibali property contained in this MD&A have been prepared in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists
and re-checked by the project manager. Sample preparation and analyses are conducted by SGS, an independent laboratory. Procedures
are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures, data
verification and assay protocols used in connection with drilling and sampling on the Kibali property conform to industry accepted quality
control methods.
152
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS
33 Jabal Sayid Significant Interceptsa
Drill Holeb
BDH1170
BDH1170
BDH1170
BDH1170
BDH1170
BDH1170
BDH1171
BDHR014
Azimuth
265
265
265
265
265
265
267
86
Drill Results from Q4 2022
Dip
(65)
(65)
(65)
(65)
(65)
(65)
(62)
(56)
Interval (m)
355 – 367
522 – 537
557 – 562
569 – 571
576 – 578
583 – 586
595.90 – 648.50
148.93 – 164.00
Width (m)c
12.00
15.00
5.00
2.00
2.00
3.00
52.60
15.07
Cu (%)
0.81
3.51
0.67
0.60
0.59
0.85
2.67
2.11
a. All intercepts calculated using a 0.5% Cu cutoff and are uncapped; minimum intercept width is 2 meters; internal dilution is equal to or less than 5 meters total width.
b. Jabal Sayid drill hole nomenclature: BDH (surface diamond hole) followed by lode and hole number.
c. True widths uncertain at this stage..
The drilling results for the Jabal Sayid property contained in this MD&A have been prepared in accordance with National Instrument 43-101
– Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists
and re-checked by the project manager. Sample preparation and analyses are conducted by ALS Minerals, an independent laboratory.
Procedures are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance
procedures, data verification and assay protocols used in connection with drilling and sampling on the Jabal Sayid property conform to
industry accepted quality control methods.
153
Barrick Gold Corporation | Annual Report 2022MANAGEMENT’S DISCUSSION AND ANALYSIS
GLOSSARY OF TECHNICAL TERMS
ALL-IN SUSTAINING COSTS: A non-GAAP measure of cost per
ounce/pound for gold/copper. Refer to page 116 of this MD&A for
further information and a reconciliation of the measure.
AUTOCLAVE: Oxidation process in which high temperatures and
pressures are applied to convert refractory sulfide mineralization into
amenable oxide ore.
BY-PRODUCT: A secondary metal or mineral product recovered in the
milling process such as silver.
C1 CASH COSTS: A non-GAAP measure of cost per pound for
copper. Refer to page 116 of this MD&A for further information and a
reconciliation of the measure.
CONCENTRATE: A very fine, powder-like product containing the
valuable ore mineral from which most of the waste mineral has been
eliminated.
CONTAINED OUNCES: Represents ounces in the ground before loss
of ounces not able to be recovered by the applicable metallurgical
processing process.
DEVELOPMENT: Work carried out for the purpose of gaining access
to an ore body. In an underground mine, this includes shaft sinking,
crosscutting, drifting and raising. In an open-pit mine, development
includes the removal of overburden (more commonly referred to as
stripping in an open pit).
DILUTION: The effect of waste or low-grade ore which is unavoidably
extracted and comingled with the ore mined thereby lowering the
recovered grade from what was planned to be mined.
DORÉ: Unrefined gold and silver bullion bars usually consisting of
approximately 90 percent precious metals that will be further refined
to almost pure metal.
DRILLING:
Core: drilling with a hollow bit with a diamond cutting rim to produce a
cylindrical core that is used for geological study and assays.
Reverse circulation: drilling that uses a rotating cutting bit within a
double-walled drill pipe and produces rock chips rather than core. Air
or water is circulated down to the bit between the inner and outer wall
of the drill pipe. The chips are forced to the surface through the center
of the drill pipe and are collected, examined and assayed.
In-fill: drilling closer spaced holes in between existing holes, used
to provide greater geological detail and to help upgrade resource
estimates to reserve estimates.
HEAP LEACHING: A process whereby gold/copper is extracted by
“heaping” broken ore on sloping impermeable pads and continually
applying to the heaps a weak cyanide solution/sulfuric acid which
dissolves the contained gold/copper. The gold/copper-laden solution
is then collected for gold/copper recovery.
HEAP LEACH PAD: A large impermeable foundation or pad used as a
base for stacking ore for the purpose of heap leaching.
MILL: A processing facility where ore is finely ground and thereafter
undergoes physical or chemical treatment to extract the valuable
metals.
MINERAL RESERVE: See pages 155–163 – Summary Gold/Copper
Mineral Reserves and Mineral Resources.
MINERAL RESOURCE: See pages 155–163 – Summary Gold/Copper
Mineral Reserves and Mineral Resources.
OPEN PIT: A mine where the minerals are mined entirely from the surface.
ORE: Rock, generally containing metallic or non-metallic minerals,
which can be mined and processed at a profit.
ORE BODY: A sufficiently large amount of ore that can be mined
economically.
OUNCES: Troy ounce is a unit of measure used for weighing gold at
999.9 parts per thousand purity and is equivalent to 31.1035g.
RECLAMATION: The process by which lands disturbed as a result
of mining activity are modified to support future beneficial land
use. Reclamation activity may include the removal of buildings,
equipment, machinery and other physical remnants of mining, closure
of tailings storage facilities, leach pads and other mine features,
and contouring, covering and re-vegetation of waste rock dumps
and other disturbed areas.
RECOVERY RATE: A term used in process metallurgy to indicate the
proportion of valuable material physically recovered in the processing
of ore. It is generally stated as a percentage of the valuable material
recovered compared to the total material originally contained in the ore.
REFINING: The final stage of metal production in which impurities are
removed through heating to extract the pure metal.
ROASTING: The treatment of sulfide ore by heat and air, or oxygen
enriched air, in order to oxidize sulfides and remove other elements
(carbon, antimony or arsenic).
Step-out: drilling to intersect a mineralized horizon or structure along
strike or down-dip.
STRIPPING: Removal of overburden or waste rock overlying an ore
body in preparation for mining by open-pit methods.
TAILINGS: The material that remains after all economically and
technically recoverable precious metals have been removed from the
ore during processing.
TOTAL CASH COSTS: A non-GAAP measure of cost per ounce for
gold. Refer to page 116 of this MD&A for further information and a
reconciliation of the measure.
EXPLORATION: Prospecting, sampling, mapping, drilling and other
work involved in searching for minerals.
FREE CASH FLOW: A non-GAAP measure that reflects our ability to
generate cash flow. Refer to page 115 of this MD&A for a definition.
GRADE: The amount of metal in each tonne of ore, expressed as
grams per tonne (g/t) for precious metals and as a percentage for most
other metals.
Cut-off grade: the minimum metal grade at which an ore body can be
economically mined (used in the calculation of ore reserves).
Mill-head grade: metal content per tonne of ore going into a mill for
processing.
Reserve grade: estimated metal content of an ore body, based on
reserve calculations.
154
Annual Report 2022 | Barrick Gold CorporationMANAGEMENT’S DISCUSSION AND ANALYSIS MINERAL RESERVES
AND MINERAL RESOURCES
The tables on the next seven pages set forth Barrick’s interest in the total proven and probable gold, silver and copper reserves and in the total
measured, indicated and inferred gold, silver and copper resources and certain related information at each property. For further details of proven
and probable mineral reserves and measured, indicated and inferred mineral resources by category, metal and property, see pages 155–163.
The Company has carefully prepared and verified the mineral reserve and mineral resource figures and believes that its method of estimating
mineral reserves has been verified by mining experience. These figures are estimates, however, and no assurance can be given that the indicated
quantities of metal will be produced. Metal price fluctuations may render mineral reserves containing relatively lower grades of mineralization
uneconomic. Moreover, short-term operating factors relating to the mineral reserves, such as the need for orderly development of ore bodies or
the processing of new or different ore grades, could affect the Company’s profitability in any particular accounting period.
DEFINITIONS
A mineral resource is a concentration or occurrence of diamonds,
natural solid inorganic material, or natural solid fossilized organic
material including base and precious metals, coal, and industrial
minerals in or on the Earth’s crust in such form and quantity and of
such a grade or quality that it has reasonable prospects for economic
extraction. The location, quantity, grade, geological characteristics and
continuity of a mineral resource are known, estimated or interpreted
from specific geological evidence and knowledge. Mineral resources
are sub-divided, in order of increasing geological confidence, into
inferred, indicated and measured categories.
An inferred mineral resource is that part of a mineral resource for
which quantity and grade or quality can be estimated on the basis of
geological evidence and limited sampling and reasonably assumed,
but not verified, geological and grade continuity. The estimate is based
on limited information and sampling gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings
and drill holes.
An indicated mineral resource is that part of a mineral resource
for which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence sufficient
to allow the appropriate application of technical and economic
parameters, to support mine planning and evaluation of the economic
viability of the deposit. The estimate is based on detailed and reliable
exploration and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings
and drill holes that are spaced closely enough for geological and grade
continuity to be reasonably assumed.
A measured mineral resource is that part of a mineral resource
for which quantity, grade or quality, densities, shape and physical
characteristics are so well established that they can be estimated
with confidence sufficient to allow the appropriate application of
technical and economic parameters, to support production planning
and evaluation of the economic viability of the deposit. The estimate
is based on detailed and reliable exploration, sampling and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are
spaced closely enough to confirm both geological and grade continuity.
Mineral resources, which are not mineral reserves, do not have
demonstrated economic viability.
A mineral reserve is the economically mineable part of a measured
or indicated mineral resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic and other relevant factors
that demonstrate, at the time of reporting, that economic extraction
can be justified.
A mineral reserve includes diluting materials and allowances for
losses that may occur when the material is mined. Mineral reserves
are sub-divided in order of increasing confidence into probable
mineral reserves and proven mineral reserves. A probable mineral
reserve is the economically mineable part of an indicated and, in some
circumstances, a measured mineral resource demonstrated by at
least a preliminary feasibility study. This study must include adequate
information on mining, processing, metallurgical, economic and
other relevant factors that demonstrate, at the time of reporting, that
economic extraction can be justified.
A proven mineral reserve is the economically mineable part of a
measured mineral resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic and other relevant factors
that demonstrate, at the time of reporting, that economic extraction
is justified.
155
Barrick Gold Corporation | Annual Report 2022Mineral Reserves and Mineral Resources GOLD MINERAL RESERVES1,2,3
As at December 31, 2022
PROVEN
PROBABLE
TOTAL
Based on attributable ounces
AFRICA AND MIDDLE EAST
Bulyanhulu underground (84.00%)
Jabal Sayid surface
Jabal Sayid underground
Jabal Sayid (50.00%) total
Kibali surface
Kibali underground
Kibali (45.00%) total
Loulo-Gounkoto surface
Loulo-Gounkoto underground
Loulo-Gounkoto (80.00%) total
North Mara surface
North Mara underground
North Mara (84.00%) total
Tongon surface (89.70%)
AFRICA AND MIDDLE EAST TOTAL
LATIN AMERICA AND ASIA PACIFIC
Norte Abierto surface (50.00%)
Porgera surface4
Porgera underground4
Porgera (24.50%) total4
Pueblo Viejo surface (60.00%)
Veladero surface (50.00%)
LATIN AMERICA AND ASIA PACIFIC TOTAL
NORTH AMERICA
Carlin surface
Carlin underground
Carlin (61.50%) total
Cortez surface
Cortez underground5
Cortez (61.50%) total
Hemlo surface
Hemlo underground
Hemlo (100%) total
Phoenix surface (61.50%)
Turquoise Ridge surface
Turquoise Ridge underground
Turquoise Ridge (61.50%) total
NORTH AMERICA TOTAL
TOTAL
See “Mineral Reserves and Resources Endnotes”.
Tonnes
(Mt)
Grade
(g/t)
Contained
ozs
(Moz)
Tonnes
(Mt)
Grade
(g/t)
Contained
ozs
(Moz)
Tonnes
(Mt)
Grade
(g/t)
Contained
ozs
(Moz)
2.2
0.069
5.8
5.9
5.4
9.1
14
11
8.9
20
0.25
0.21
0.46
3.9
47
7.16
0.34
0.20
0.21
2.07
4.31
3.47
2.48
4.86
3.54
3.43
3.68
3.55
2.36
3.17
110
0.65
–
0.66
0.66
35
8.0
160
9.8
11
21
0.76
0.60
1.4
–
0.50
0.50
8.5
10
10
21
52
260
–
6.69
6.69
2.29
0.41
1.02
2.48
9.27
6.07
2.65
9.44
5.63
–
4.93
4.93
0.71
2.29
10.20
6.26
5.24
2.26
0.50
0.00076
0.038
0.039
0.36
1.3
1.6
0.89
1.4
2.3
0.028
0.025
0.053
0.30
4.8
2.4
–
0.14
0.14
2.6
0.11
5.2
0.79
3.3
4.1
0.065
0.18
0.25
–
0.079
0.079
0.19
0.75
3.4
4.1
8.7
19
11
–
7.5
7.5
15
14
29
14
19
34
29
9.3
39
3.9
120
480
5.0
2.2
7.2
140
77
710
63
6.0
69
110
26
130
18
4.6
23
96
0.28
12
13
330
1,200
6.18
–
0.39
0.39
2.19
4.15
3.15
2.78
5.04
4.08
2.05
3.42
2.38
2.14
3.24
0.59
3.55
7.05
4.64
2.16
0.74
0.96
2.24
7.90
2.73
0.88
7.74
2.22
1.49
4.87
2.19
0.58
1.38
9.51
9.33
2.12
1.53
2.2
–
0.094
0.094
1.0
1.9
3.0
1.3
3.1
4.4
1.9
1.0
2.9
0.26
13
9.2
0.57
0.51
1.1
9.7
1.8
22
4.6
1.5
6.1
3.0
6.4
9.4
0.86
0.73
1.6
1.8
0.013
3.8
3.8
23
57
13
0.069
13
13
20
23
44
25
28
54
29
9.5
39
7.8
170
600
5.0
2.9
7.9
170
85
870
73
17
90
110
26
130
18
5.1
23
100
11
23
33
380
1,400
6.34
0.34
0.31
0.31
2.16
4.21
3.26
2.65
4.98
3.87
2.06
3.43
2.40
2.25
3.22
0.60
3.55
6.96
4.81
2.19
0.71
0.97
2.27
8.79
3.50
0.90
7.78
2.26
1.49
4.88
2.25
0.59
2.27
9.82
7.43
2.54
1.67
2.7
0.00076
0.13
0.13
1.4
3.2
4.6
2.2
4.5
6.7
2.0
1.0
3.0
0.56
18
12
0.57
0.65
1.2
12
1.9
27
5.4
4.8
10
3.1
6.5
9.6
0.86
0.81
1.7
2.0
0.77
7.2
8.0
31
76
156
Annual Report 2022 | Barrick Gold CorporationMineral Reserves and Mineral Resources COPPER MINERAL RESERVES1,2,3,7
As at December 31, 2022
PROVEN
PROBABLE
Based on attributable pounds
AFRICA AND MIDDLE EAST
Bulyanhulu underground (84.00%)
Jabal Sayid surface
Jabal Sayid underground
Jabal Sayid (50.00%) total
Lumwana surface (100%)
AFRICA AND MIDDLE EAST TOTAL
LATIN AMERICA AND ASIA PACIFIC
Norte Abierto surface (50.00%)
Zaldívar surface (50.00%)
LATIN AMERICA AND ASIA PACIFIC TOTAL
NORTH AMERICA
Phoenix surface (61.50%)
NORTH AMERICA TOTAL
TOTAL
See “Mineral Reserves and Resources Endnotes”.
SILVER MINERAL RESERVES1,2,3,7
Tonnes
(Mt)
Cu
Grade
(%)
Contained
Cu
(Mlb)
Tonnes
(Mt)
Cu
Grade
(%)
Contained
Cu
(Mlb)
2.2
0.069
5.8
5.9
89
97
110
170
280
11
11
390
0.33
2.64
2.25
2.25
0.51
0.61
0.19
0.44
0.34
0.16
0.16
0.40
16
4.0
290
290
1,000
1,300
480
1,600
2,100
40
40
3,500
11
–
7.5
7.5
390
410
480
38
520
130
130
1,100
0.34
–
2.28
2.28
0.59
0.62
0.23
0.31
0.23
0.16
0.16
0.37
84
–
380
380
5,200
5,600
2,400
260
2,700
470
470
8,800
As at December 31, 2022
PROVEN
PROBABLE
Based on attributable ounces
AFRICA AND MIDDLE EAST
Bulyanhulu underground (84.00%)
AFRICA AND MIDDLE EAST TOTAL
LATIN AMERICA AND ASIA PACIFIC
Norte Abierto surface (50.00%)
Pueblo Viejo surface (60.00%)
Veladero surface (50.00%)
LATIN AMERICA AND ASIA PACIFIC TOTAL
NORTH AMERICA
Phoenix surface (61.50%)
NORTH AMERICA TOTAL
TOTAL
See “Mineral Reserves and Resources Endnotes”.
Tonnes
(Mt)
Ag
Grade
(g/t)
Contained
Ag
(Moz)
Tonnes
(Mt)
Ag
Grade
(g/t)
Contained
Ag
(Moz)
2.2
2.2
6.90
6.90
0.48
0.48
110
1.91
35 12.94
8.0 12.72
160
4.92
8.5
8.5
170
7.46
7.46
5.07
7.0
15
3.3
25
2.0
2.0
28
11
11
5.91
5.91
480
1.43
140 13.76
77 14.62
700
5.34
96
96
810
6.24
6.24
5.45
2.1
2.1
22
62
36
120
19
19
140
TOTAL
Cu
Grade
(%)
Contained
Cu
(Mlb)
0.34
2.64
2.26
2.27
0.58
0.62
0.22
0.42
0.27
0.16
0.16
0.38
100
4.0
670
670
6,200
7,000
2,900
1,900
4,800
510
510
12,000
Tonnes
(Mt)
13
0.069
13
13
480
510
600
210
810
140
140
1,500
TOTAL
Ag
Grade
(g/t)
Contained
Ag
(Moz)
Tonnes
(Mt)
13
13
6.07
6.07
600
1.52
170 13.60
85 14.44
860
5.26
100
100
980
6.34
6.34
5.39
2.6
2.6
29
76
39
150
21
21
170
157
Barrick Gold Corporation | Annual Report 2022Mineral Reserves and Mineral Resources GOLD MINERAL RESOURCES1,3,8,9
As at December 31, 2022
MEASURED (M)10
INDICATED (I)10
Tonnes
(Mt)
Grade
(g/t)
Contained
ozs
(Moz)
Tonnes
(Mt)
Grade
(g/t)
Contained
ozs
(Moz)
(M) + (I)10
Contained
ozs
(Moz)
INFERRED11
Tonnes
(Mt)
Grade
(g/t)
Contained
ozs
(Moz)
Jabal Sayid surface
0.069
Based on attributable ounces
AFRICA AND MIDDLE EAST
Bulyanhulu surface
Bulyanhulu underground
Bulyanhulu (84.00%) total
Jabal Sayid underground
Jabal Sayid (50.00%) total
Kibali surface
Kibali underground
Kibali (45.00%) total
Loulo-Gounkoto surface
Loulo-Gounkoto underground
Loulo-Gounkoto (80.00%) total
North Mara surface
North Mara underground
North Mara (84.00%) total
Tongon surface (89.70%)
AFRICA AND MIDDLE EAST TOTAL
LATIN AMERICA AND ASIA PACIFIC
Alturas surface (100%)
Norte Abierto surface (50.00%)
Pascua Lama surface (100%)
Porgera surface4
Porgera underground4
Porgera (24.50%) total4
Pueblo Viejo surface (60.00%)
Reko Diq surface (50.00%)6
Veladero surface (50.00%)
LATIN AMERICA AND ASIA
PACIFIC TOTAL
0.0029
6.70
0.00062
3.3 10.24
3.3 10.24
0.34
0.33
0.33
2.19
4.63
3.70
2.49
4.39
3.61
2.25
2.28
2.25
2.57
3.23
–
0.63
1.86
3.98
6.16
5.55
2.08
–
7.8
7.9
7.4
12
20
12
17
30
18
0.77
18
4.5
83
–
190
43
0.39
0.99
1.4
46
–
1.1
1.1
0.00076
0.083
0.084
0.52
1.8
2.3
0.97
2.5
3.4
1.3
0.057
1.3
0.37
8.7
–
3.9
2.6
0.049
0.20
0.25
3.1
–
0.12
–
21
21
–
7.3
7.3
26
24
50
16
28
44
23
28
50
5.3
180
–
1,100
390
14
5.0
19
190
1,800
120
–
5.88
5.88
–
0.41
0.41
2.06
3.97
2.98
2.90
4.63
4.02
1.79
2.21
2.02
2.32
3.18
–
0.53
1.49
2.78
6.04
3.62
1.99
0.26
0.71
–
3.9
3.9
–
0.097
0.097
1.7
3.1
4.8
1.5
4.2
5.7
1.3
2.0
3.3
0.40
18
–
19
19
1.3
0.97
2.3
12
15
2.6
69
0.00062
5.0
5.0
0.00076
0.18
0.18
2.2
4.9
7.1
2.4
6.7
9.1
2.6
2.0
4.6
0.77
27
–
22
21
1.3
1.2
2.5
15
15
2.8
79
–
17
17
–
1.5
1.5
4.8
8.4
13
6.5
16
22
4.1
15
19
0.82
73
180
370
15
6.1
1.8
8.0
4.6
570
14
–
8.4
8.4
–
0.6
0.6
2.1
2.9
2.6
1.9
2.9
2.6
1.4
1.6
1.6
2.5
3.7
0.9
0.4
1.7
2.2
6.6
3.2
1.8
0.2
0.6
1,200
0.4
–
4.6
4.6
–
0.027
0.027
0.32
0.79
1.1
0.38
1.5
1.9
0.19
0.75
0.93
0.064
8.6
5.4
4.4
0.86
0.43
0.39
0.82
0.26
3.7
0.27
16
9.1
0.40
290
1.06
9.9
3,600
0.60
See “Mineral Reserves and Resources Endnotes”.
158
Annual Report 2022 | Barrick Gold CorporationMineral Reserves and Mineral Resources GOLD MINERAL RESOURCES1,3,8,9
As at December 31, 2022
MEASURED (M)10
INDICATED (I)10
Based on attributable ounces
NORTH AMERICA
Carlin surface
Carlin underground
Carlin (61.50%) total
Cortez surface
Cortez underground5
Cortez (61.50%) total
Donlin surface (50.00%)
Fourmile underground (100%)
Hemlo surface
Hemlo underground
Hemlo (100%) total
Long Canyon surface
Long Canyon underground
Long Canyon (61.50%) total
Phoenix surface (61.50%)
Turquoise Ridge surface
Turquoise Ridge underground
Turquoise Ridge (61.50%) total
NORTH AMERICA TOTAL
TOTAL
Tonnes
(Mt)
Grade
(g/t)
Contained
ozs
(Moz)
Tonnes
(Mt)
Grade
(g/t)
Contained
ozs
(Moz)
29
24
53
0.99
1.3
2.3
3.9
–
–
0.72
0.72
0.30
–
0.30
12
24
13
36
110
480
2.18
7.80
4.69
2.78
7.66
5.53
2.52
–
–
5.11
5.11
3.53
–
3.53
0.64
2.14
9.49
4.72
4.18
2.13
2.0
5.9
8.0
0.089
0.32
0.40
0.31
–
–
0.12
0.12
0.034
–
0.034
0.25
1.6
3.9
5.5
15
33
140
13
150
160
37
190
270
1.94
6.74
2.35
0.87
6.87
2.02
2.24
8.5
2.7
11
4.4
8.3
13
19
1.5 10.01
0.49
42
11
52
4.9
1.40
4.80
2.09
2.56
1.1 10.68
6.1
230
21
19
40
940
4,700
4.05
0.50
2.07
8.51
5.19
1.93
0.96
1.9
1.6
3.5
0.41
0.38
0.79
3.6
1.4
5.3
6.6
58
150
See “Mineral Reserves and Resources Endnotes”.
(M) + (I)10
Contained
ozs
(Moz)
INFERRED11
Tonnes
(Mt)
Grade
(g/t)
Contained
ozs
(Moz)
11
8.7
19
4.5
8.6
13
20
0.49
1.9
1.8
3.6
0.44
0.38
0.82
3.9
3.0
9.2
12
73
180
60
13
73
110
15
130
46
7.8
2.4
3.0
5.4
1.1
0.53
1.6
30
6.7
1.9
8.6
300
1,500
1.2
7.3
2.3
0.4
5.9
1.1
2.0
10.5
1.0
5.1
3.3
0.9
9.1
3.6
0.3
1.7
6.9
2.9
1.8
0.8
2.4
3.2
5.5
1.5
2.9
4.4
3.0
2.7
0.079
0.50
0.58
0.029
0.16
0.18
0.32
0.37
0.42
0.79
17
42
159
Barrick Gold Corporation | Annual Report 2022Mineral Reserves and Mineral Resources COPPER MINERAL RESOURCES1,3,7,8,9
As at December 31, 2022
MEASURED (M)10
INDICATED (I)10
Tonnes
(Mt)
Grade
(%)
Contained
lbs
(Mlb)
Tonnes
(Mt)
Grade
(%)
Contained
lbs
(Mlb)
(M) + (I)10
Contained
lbs
(Mlb)
INFERRED11
Tonnes
(Mt)
Grade
(%)
Contained
lbs
(Mlb)
0.0029
3.3
3.3
0.069
7.8
7.9
140
150
0.32
0.44
0.44
2.64
2.60
2.60
0.48
0.59
170
0.21
–
–
0.021
32
32
4.0
450
450
1,500
2,000
790
–
–
–
21 0.31
21 0.31
–
–
7.3 2.36
7.3 2.36
960 0.55
990 0.56
–
140
140
–
380
380
12,000
12,000
1,000 0.21
4,700
1,900 0.44
18,000
360
0.40
3,200
200 0.37
1,600
0.021
170
170
4.0
830
830
13,000
14,000
5,500
18,000
4,800
–
17
17
–
1.5
1.5
820
840
360
590
20
–
0.4
0.4
–
1.3
1.3
0.5
0.5
0.2
0.4
0.4
–
130
130
–
44
44
8,700
8,900
1,400
4,600
160
530
0.34
4,000
3,100 0.36
25,000
29,000
970
0.3
6,200
15
15
700
0.15
0.15
0.39
52
52
320 0.15
320 0.15
1,000
1,000
6,000
4,500 0.39
38,000
1,100
1,100
44,000
32
32
1,800
0.1
0.1
0.4
93
93
15,000
Based on attributable pounds
AFRICA AND MIDDLE EAST
Bulyanhulu surface
Bulyanhulu underground
Bulyanhulu (84.00%) total
Jabal Sayid surface
Jabal Sayid underground
Jabal Sayid (50.00%) total
Lumwana surface (100%)
AFRICA AND MIDDLE EAST TOTAL
LATIN AMERICA AND ASIA PACIFIC
Norte Abierto surface (50.00%)
Reko Diq surface (50.00%)6
Zaldívar surface (50.00%)
LATIN AMERICA AND
ASIA PACIFIC TOTAL
NORTH AMERICA
Phoenix surface (61.50%)
NORTH AMERICA TOTAL
TOTAL
See “Mineral Reserves and Resources Endnotes”.
160
Annual Report 2022 | Barrick Gold CorporationMineral Reserves and Mineral Resources SILVER MINERAL RESOURCES1,3,7,8,9
As at December 31, 2022
MEASURED (M)10
INDICATED (I)10
Based on attributable ounces
AFRICA AND MIDDLE EAST
Bulyanhulu surface
Bulyanhulu underground
Bulyanhulu (84.00%) total
AFRICA AND MIDDLE EAST TOTAL
LATIN AMERICA AND ASIA PACIFIC
Norte Abierto surface (50.00%)
Pascua-Lama surface (100%)
Pueblo Viejo surface (60.00%)
Veladero surface (50.00%)
LATIN AMERICA AND
ASIA PACIFIC TOTAL
NORTH AMERICA
Phoenix surface (61.50%)
NORTH AMERICA TOTAL
TOTAL
Tonnes
(Mt)
Ag
Grade
(g/t)
Contained
Ag
(Moz)
Tonnes
(Mt)
Ag
Grade
(g/t)
Contained
Ag
(Moz)
0.0029
7.00 0.00065
3.3
3.3
3.3
8.52
8.52
8.52
190
1.62
43 57.21
46 11.69
9.1 11.39
0.90
0.90
0.90
10
79
17
3.3
–
21
21
21
–
5.54
5.54
5.54
1,100
1.23
390 52.22
190 12.32
120 14.42
290 11.73
110
1,800 14.51
12
12
6.80
6.80
310 11.50
2.7
2.7
110
230
230
5.79
5.79
2,000 13.44
–
3.7
3.7
3.7
43
660
75
54
830
42
42
880
See “Mineral Reserves and Resources Endnotes”.
(M) + (I)10
Contained
Ag
(Moz)
0.00065
4.6
4.6
4.6
53
740
92
57
940
45
45
990
INFERRED11
Tonnes
(Mt)
Ag
Grade
(g/t)
Contained
Ag
(Moz)
–
17
17
17
370
15
4.6
14
–
6.2
6.2
6.2
1.0
17.8
10.5
14.3
400
2.2
30
30
450
5.6
5.6
2.5
–
3.4
3.4
3.4
11
8.8
1.5
6.3
28
5.4
5.4
37
161
Barrick Gold Corporation | Annual Report 2022Mineral Reserves and Mineral Resources SUMMARY GOLD MINERAL RESERVES1,2,3
For the years ended December 31
2022
2021
Based on attributable ounces
AFRICA AND MIDDLE EAST
Bulyanhulu surface
Bulyanhulu underground
Bulyanhulu Total
Jabal Sayid surface
Jabal Sayid underground
Jabal Sayid Total
Kibali surface
Kibali underground
Kibali Total
Loulo-Gounkoto surface
Loulo-Gounkoto underground
Loulo-Gounkoto Total
North Mara surface
North Mara underground
North Mara Total
Tongon surface
AFRICA AND MIDDLE EAST TOTAL
LATIN AMERICA AND ASIA PACIFIC
Norte Abierto surface
Porgera surface4
Porgera underground4
Porgera Total4
Pueblo Viejo surface
Veladero surface
LATIN AMERICA AND ASIA
PACIFIC TOTAL
NORTH AMERICA
Carlin surface
Carlin underground
Carlin Total
Cortez surface
Cortez underground5
Cortez Total
Hemlo surface
Hemlo underground
Hemlo Total
Long Canyon surface
Phoenix surface
Turquoise Ridge surface
Turquoise Ridge underground
Turquoise Ridge Total
NORTH AMERICA TOTAL
TOTAL
See “Mineral Reserves and Resources Endnotes”.
Ownership
%
Tonnes
(Mt)
Grade
(g/t)
Ounces
(Moz)
Ownership
%
Tonnes
(Mt)
Grade
(g/t)
Ounces
(Moz)
84.00%
84.00%
84.00%
50.00%
50.00%
50.00%
45.00%
45.00%
45.00%
80.00%
80.00%
80.00%
84.00%
84.00%
84.00%
89.70%
50.00%
24.50%
24.50%
24.50%
60.00%
50.00%
61.50%
61.50%
61.50%
61.50%
61.50%
61.50%
100%
100%
100%
61.50%
61.50%
61.50%
61.50%
61.50%
–
13
13
0.069
13
13
20
23
44
25
28
54
29
9.5
39
7.8
170
600
5.0
2.9
7.9
170
85
870
73
17
90
110
26
130
18
5.1
23
–
100
11
23
33
380
1,400
–
6.34
6.34
0.34
0.31
0.31
2.16
4.21
3.26
2.65
4.98
3.87
2.06
3.43
2.40
2.25
3.22
0.60
3.55
6.96
4.81
2.19
0.71
0.97
2.27
8.79
3.50
0.90
7.78
2.26
1.49
4.88
2.25
–
0.59
2.27
9.82
7.43
2.54
1.67
–
2.7
2.7
0.00076
0.13
0.13
1.4
3.2
4.6
2.2
4.5
6.7
2.0
1.0
3.0
0.56
18
12
0.57
0.65
1.2
12
1.9
27
5.4
4.8
10
3.1
6.5
9.6
0.86
0.81
1.7
–
2.0
0.77
7.2
8.0
31
76
84.00% 0.00010
10.42 0.000035
84.00%
84.00%
50.00%
50.00%
50.00%
45.00%
45.00%
45.00%
80.00%
80.00%
80.00%
84.00%
84.00%
84.00%
89.70%
50.00%
24.50%
24.50%
24.50%
60.00%
50.00%
61.50%
61.50%
61.50%
61.50%
61.50%
61.50%
100%
100%
100%
61.50%
61.50%
61.50%
61.50%
61.50%
10
10
0.072
13
13
17
21
37
22
29
51
38
6.8
44
7.9
160
600
4.8
3.2
8.0
76
90
770
84
19
100
39
27
65
0.018
6.4
6.4
0.61
100
26
21
46
330
1,300
7.76
7.76
0.34
0.26
0.26
2.45
4.54
3.60
2.98
4.86
4.06
1.73
3.44
1.99
1.87
3.22
0.60
3.66
6.34
4.75
2.22
0.77
0.83
2.23
8.86
3.46
1.68
7.79
4.17
0.32
5.18
5.16
1.18
0.60
2.05
10.39
5.74
3.04
1.71
2.5
2.5
0.00079
0.11
0.11
1.3
3.0
4.3
2.1
4.6
6.7
2.1
0.75
2.8
0.47
17
12
0.56
0.66
1.2
5.4
2.2
21
6.0
5.4
11
2.1
6.7
8.8
0.00018
1.1
1.1
0.023
2.0
1.7
6.9
8.6
32
69
162
Annual Report 2022 | Barrick Gold CorporationMineral Reserves and Mineral Resources 2. In confirming our annual reserves for each of our mineral
properties, projects, and operations, we conduct a reserve test on
December 31 of each year to verify that the future undiscounted
cash flow from reserves is positive. The cash flow ignores all sunk
costs and only considers future operating and closure expenses
as well as any future capital costs.
3. All mineral resource and mineral reserve estimates of tonnes,
Au oz, Ag oz and Cu lb are reported to the second significant digit.
4. Porgera mineral reserves and mineral resources are reported on
a 24.5% interest basis, reflecting Barrick’s expected ownership
interest following the implementation of the binding February 3,
2022 Commencement Agreement. The Commencement Agreement
provides, among other things, for ownership of Porgera to be
held in a new joint venture owned 51% by Papua New Guinea
(“PNG”) stakeholders and 49% by Barrick Niugini Limited (“BNL”)
or an affiliate. BNL is jointly owned on a 50/50 basis by Barrick
and Zijin Mining Group and will retain operatorship of the mine
under the terms of the Commencement Agreement. Efforts
are ongoing to execute the remaining definitive agreements to
implement the Commencement Agreement and finalize a timeline
for the reopening of the Porgera mine and resumption of full mine
operations. For additional information, see page 97 of Barrick’s
Annual Report 2022.
5. Cortez underground includes 21 million tonnes at 7.27g/t for
4.9 million ounces of probable reserves, 29 million tonnes at
6.49g/t for 6.1 million ounces of indicated resources and 15 million
tonnes at 5.9g/t for 2.8 million ounces of inferred resources related
to Goldrush. As noted in endnote 9, mineral resources are reported
on an inclusive basis.
6. Reko Diq mineral resources are reported on a 50% interest basis,
reflecting Barrick’s ownership interest following the completion of
the transaction allowing for the reconstitution of the project on
December 15, 2022. This completed the process that began earlier
in 2022 following the conclusion of a framework agreement among
the Governments of Pakistan and Balochistan province, Barrick
and Antofagasta plc, which provided a path for the development
of the project under a reconstituted structure. The reconstituted
project is held 50% by Barrick and 50% by Pakistani stakeholders.
Barrick is the operator of the project. For additional information,
see page 62 of Barrick’s Annual Report 2022.
7. 2022 polymetallic mineral resources and mineral reserves are
estimated using the combined value of gold, copper & silver
and accordingly are reported as gold, copper and silver mineral
resources and mineral reserves.
8. Mineral resources which are not mineral reserves do not have
demonstrated economic viability.
9. Mineral resources are reported inclusive of mineral reserves.
10. All measured and indicated mineral resource estimates of grade
and all proven and probable mineral reserve estimates of grade for
Au g/t, Ag g/t and Cu % are reported to two decimal places.
11. All inferred mineral resource estimates of grade for Au g/t, Ag g/t
and Cu % are reported to one decimal place.
MINERAL RESERVES AND RESOURCES ENDNOTES
1. Mineral reserves (“reserves”) and mineral resources (“resources”)
have been estimated as at December 31, 2022 (unless otherwise
noted) in accordance with National Instrument 43-101 – Standards
of Disclosure for Mineral Projects (“NI 43-101”) as required by
Canadian securities regulatory authorities. For United States
reporting purposes, the SEC has adopted amendments to its
disclosure rules to modernize the mineral property disclosure
requirements for issuers whose securities are registered with the
SEC under the Securities and Exchange Act of 1934, as amended
(the “Exchange Act”). These amendments became effective
February 25, 2019 (the “SEC Modernization Rules”) with compliance
required for the first fiscal year beginning on or after January 1,
2021. The SEC Modernization Rules replace the historical property
disclosure requirements for mining registrants that were included
in SEC Industry Guide 7, which was rescinded from and after the
required compliance date of the SEC Modernization Rules. As a
result of the adoption of the SEC Modernization Rules, the SEC now
recognizes estimates of “measured”, “indicated” and “inferred”
mineral resources. In addition, the SEC has amended its definitions
of “proven mineral reserves” and “probable mineral reserves” to
be substantially similar to the corresponding Canadian Institute
of Mining, Metallurgy and Petroleum definitions, as required by
NI 43-101. U.S. investors should understand that “inferred” mineral
resources have a great amount of uncertainty as to their existence
and great uncertainty as to their economic and legal feasibility. In
addition, U.S. investors are cautioned not to assume that any part or
all of Barrick’s mineral resources constitute or will be converted into
reserves. Mineral resource and mineral reserve estimations have
been prepared by employees of Barrick, its joint venture partners
or its joint venture operating companies, as applicable, under the
supervision of Richard Peattie, Africa and Middle East Mineral
Resource Manager, Chad Yuhasz, Latin America & Asia Pacific
Mineral Resource Manager and Craig Fiddes – SME-RM, Lead
– Resource Modeling, Nevada Gold Mines and reviewed by Simon
Bottoms, Barrick’s Mineral Resource Management and Evaluation
Executive. For 2022, reserves have been estimated based on an
assumed gold price of US$1,300 per ounce, an assumed silver
price of US$18.00 per ounce, and an assumed copper price
of US$3.00 per pound and long-term average exchange rates
of 1.30 CAD/US$, except at Zaldívar, where mineral reserves for
2022 were calculated using Antofagasta guidance and an updated
assumed copper price of US$3.30 per pound. The Zaldívar joint
venture is operated by Antofagasta. Subsequent to the publication
of Barrick’s press release of February 9, 2023, entitled “Focus
on Tier One Assets Delivers Significant Increase in Resources
and Reserves, Underpinning Industry-Leading Production Profile
Growth” Antofagasta updated their assumed copper price for 2022
reserves from $3.10 per pound to $3.30 per pound, which does not
change Barrick’s 2022 reserves and resources estimates for the joint
venture as originally disclosed on February 9, 2023 and set forth
in the tables above. For 2021, reserves were estimated based on
an assumed gold price of US$1,200 per ounce, an assumed silver
price of US$16.50 per ounce, and an assumed copper price of
US$2.75 per pound and long-term average exchange rates of
1.30 CAD/US$, except at Zaldívar, where mineral reserves for 2021
were calculating using Antofagasta guidance and an assumed
copper price of $3.10 per pound. Reserve estimates incorporate
current and/or expected mine plans and cost levels at each
property. Varying cut-off grades have been used depending on the
mine and type of ore contained in the reserves. Barrick’s normal
data verification procedures have been employed in connection with
the calculations. Verification procedures include industry-standard
quality control practices. Resources as at December 31, 2022 have
been estimated using varying cut-off grades, depending on both the
type of mine or project, its maturity and ore types at each property.
163
Barrick Gold Corporation | Annual Report 2022Mineral Reserves and Mineral Resources MANAGEMENT’S RESPONSIBILITY
FOR FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been
prepared by and are the responsibility of the Board of Directors and
Management of the Company.
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards as
issued by the International Accounting Standards Board and reflect
Management’s best estimates and judgments based on currently
available information. The Company has developed and maintains a
system of internal controls in order to ensure, on a reasonable and
cost effective basis, the reliability of its financial information.
The consolidated financial statements have been audited by
PricewaterhouseCoopers LLP, Chartered Professional Accountants.
Their report outlines the scope of their examination and opinion on the
consolidated financial statements.
Graham Shuttleworth
Senior Executive Vice President
and Chief Financial Officer
February 14, 2023
MANAGEMENT’S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING
Barrick’s management is responsible for establishing and maintaining
adequate internal control over financial reporting.
Based on management’s assessment, Barrick’s internal control over
financial reporting is effective as at December 31, 2022.
Barrick’s management assessed
the
Company’s internal control over financial reporting as at December 31,
2022. Barrick’s Management used the Internal Control – Integrated
Framework (2013) as issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) to evaluate the
effectiveness of Barrick’s internal control over financial reporting.
the effectiveness of
The effectiveness of the Company’s
internal control over
financial reporting as at December 31, 2022 has been audited by
PricewaterhouseCoopers LLP, Chartered Professional Accountants,
as stated in their report which is located on page 165–167 of Barrick’s
2022 Annual Financial Statements.
164
Annual Report 2022 | Barrick Gold Corporation REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of Barrick Gold Corporation
Opinions on the Financial Statements and Internal
Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of
Barrick Gold Corporation and its subsidiaries (together, the Company)
as of December 31, 2022 and 2021, and the related consolidated
statements of income, comprehensive income, changes in equity
and cash flow for the years then ended, including the related notes
(collectively referred to as the consolidated financial statements).
We also have audited the Company’s internal control over financial
reporting as of December 31, 2022, based on criteria established in
Internal Control – Integrated Framework (2013) issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the financial position of
the Company as of December 31, 2022 and 2021, and its financial
performance and its cash flows for the years then ended in conformity
with International Financial Reporting Standards as issued by the
International Accounting Standards Board. Also, in our opinion, the
Company maintained, in all material respects, effective internal control
over financial reporting as of December 31, 2022, based on criteria
established in Internal Control – Integrated Framework (2013) issued
by the COSO.
Basis for Opinions
The Company’s management is responsible for these consolidated
financial statements, for maintaining effective internal control over
financial reporting, and for its assessment of the effectiveness of
internal control over financial reporting, included in the accompanying
Management’s Report on Internal Control over Financial Reporting. Our
responsibility is to express opinions on the Company’s consolidated
financial statements and on the Company’s internal control over
financial reporting based on our audits. We are a public accounting
firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with
respect to the Company in accordance with the U.S. federal securities
laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of
the PCAOB. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due
to error or fraud, and whether effective internal control over financial
reporting was maintained in all material respects.
Our audits of the consolidated financial statements included
performing procedures to assess the risks of material misstatement
of the consolidated financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such
procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the consolidated financial statements.
Our audits also included evaluating the accounting principles used
and significant estimates made by management, as well as evaluating
the overall presentation of the consolidated financial statements. Our
audit of internal control over financial reporting included obtaining an
understanding of internal control over financial reporting, assessing
the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on
the assessed risk. Our audits also included performing such other
procedures as we considered necessary in the circumstances. We
believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over
Financial Reporting
A company’s internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements
for external purposes
in accordance with generally accepted
accounting principles. A company’s internal control over financial
reporting includes those policies and procedures that (i) pertain to
the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of
the company; (ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and
that receipts and expenditures of the company are being made only
in accordance with authorizations of management and directors of
the company; and (iii) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect
on the financial statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
165
Barrick Gold Corporation | Annual Report 2022INDEPENDENT AUDITOR’S REPORT Critical Audit Matters
The critical audit matters communicated below are matters arising
from the current period audit of the consolidated financial statements
that were communicated or required to be communicated to the Audit
& Risk Committee and that (i) relate to accounts or disclosures that
are material to the consolidated financial statements and (ii) involved
our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our
opinion on the consolidated financial statements, taken as a whole,
and we are not, by communicating the critical audit matters below,
providing separate opinions on the critical audit matters or on the
accounts or disclosures to which they relate.
Impairment assessments for goodwill and other
non-current assets
As described in Notes 2, 3, 10, 20 and 21 to the consolidated financial
statements, the Company’s goodwill and other non-current assets
are tested for impairment if there is an indicator of impairment, and
in the case of goodwill annually, during the fourth quarter. Impairment
assessments are conducted at the level of the cash generating unit
(CGU), which is the lowest level for which identifiable cash flows are
largely independent of the cash flows of other assets and includes
liabilities specific to the CGU. For operating mines and projects, the
individual mine/project represents a CGU for impairment assessments.
The Company’s goodwill and other non-current assets balances as of
December 31, 2022 were $3.6 billion and $33.2 billion, respectively.
Management estimated the recoverable amounts of the CGUs as the
Fair Value Less Costs of Disposal (FVLCD) using discounted estimates
of future cash flows derived from the life of mine (LOM) plans,
estimated fair values of mineral resources outside LOM plans and the
application of a specific Net Asset Value (NAV) multiple for each CGU,
where applicable. Management’s estimates of the FVLCD of the CGUs
included significant assumptions with respect to future metal prices,
operating and capital costs, weighted average costs of capital, NAV
multiples, future production levels, including mineral reserves and
mineral resources, and the fair value of mineral resources outside LOM
plans, where applicable. Management’s estimates of future production
levels, including mineral reserves and mineral resources, and the
fair value of mineral resources outside LOM plans, are based on
information compiled by qualified persons (management’s specialists).
The principal considerations for our determination that performing
procedures relating to the impairment assessments for goodwill and
other non-current assets is a critical audit matter are (i) the significant
judgment by management, including the use of management’s
specialists, in estimating the FVLCD of the CGUs; (ii) a high degree
of auditor judgment, subjectivity and effort in performing procedures
and evaluating management’s significant assumptions with respect
to future metal prices, operating and capital costs, weighted average
costs of capital, NAV multiples, future production levels, including
mineral reserves and mineral resources, and the fair value of mineral
resources outside LOM plans, where applicable; and (iii) the audit effort
involved the use of professionals with specialized skill and knowledge.
the significant assumptions used
Addressing the matter involved performing procedures and
evaluating audit evidence in connection with forming our overall
opinion on the consolidated financial statements. These procedures
included testing the effectiveness of controls relating to management’s
impairment assessments for goodwill and other non-current assets,
including controls over
in
management’s estimates of the FVLCD of the CGUs. These
procedures also included, among others, testing management’s
process for estimating the FVLCD of the CGUs with goodwill and for
each CGU where there is an indicator of impairment; evaluating the
appropriateness of the methods and discounted cash flow models
used; testing the completeness and accuracy of underlying data used
in the models and evaluating the reasonableness of the significant
assumptions used by management in the estimates of FVLCD.
Evaluating the reasonableness of the significant assumptions used by
management in the estimates of FVLCD with respect to future metal
prices, operating and capital costs and NAV multiples involved (i)
comparing future metal prices to external industry data; (ii) comparing
operating and capital costs to recent actual operating and capital costs
incurred and assessing whether these assumptions were consistent
with evidence obtained in other areas of the audit, where appropriate;
and (iii) comparing NAV multiples to evidence of value from comparable
market information. The work of management’s specialists was used
in performing the procedures to evaluate the reasonableness of future
production levels, including mineral reserves and mineral resources,
and the fair value of mineral resources outside LOM plans for certain
CGUs. As a basis for using this work, management’s specialists’
qualifications were understood and the Company’s relationship with
management’s specialists was assessed. The procedures performed
also included evaluation of the methods and assumptions used
by management’s specialists, tests of data used by management’s
specialists and an evaluation of management’s specialists’ findings.
Professionals with specialized skill and knowledge were used to assist
in evaluating the appropriateness of the methods and discounted cash
flow models and the reasonableness of the weighted average costs of
capital and NAV multiple assumptions.
Uncertain tax positions
As described in Notes 2, 3, 30 and 35 to the consolidated financial
statements, the Company is subject to assessments by various
taxation authorities, who may interpret tax legislation differently than
the Company. As disclosed by management, the Company operates
in certain jurisdictions where tax legislation and interpretation is
developing and there is a risk that fiscal reforms could impact existing
investments. Management is required to assess uncertainties and
make significant judgments when assessing the outcome and amounts
recorded for uncertain tax positions. If actual results are significantly
different from the Company’s assessments, this could necessitate
future adjustments to tax income and expense already recorded.
166
Annual Report 2022 | Barrick Gold CorporationINDEPENDENT AUDITOR’S REPORT The principal considerations for our determination that performing
procedures relating to uncertain tax positions is a critical audit matter
are (i) the significant judgment by management when assessing the
outcome and amounts recorded for uncertain tax positions, which
include a high degree of estimation uncertainty; (ii) a high degree of
auditor judgment, subjectivity and effort in performing procedures
and evaluating management’s timely identification, recognition and
accurate measurement of uncertain tax positions; (iii) the evaluation
of audit evidence available to support the amounts recorded for
uncertain tax positions is complex and resulted in significant auditor
judgment as the nature of the evidence is often highly subjective; and
(iv) the audit effort involved the use of professionals with specialized
skill and knowledge.
Addressing the matter involved performing procedures and
evaluating audit evidence in connection with forming our overall opinion
on the consolidated financial statements. These procedures included
testing the effectiveness of controls relating to the identification and
recognition of the amounts recorded for uncertain tax positions,
controls addressing the completeness of the uncertain tax positions,
and controls over the measurement of the amounts recorded, as well
as consolidated financial statement disclosures. These procedures
also included, among others, testing the information used in the
calculations of the amounts recorded for uncertain tax positions;
testing the calculations of the amounts recorded for uncertain tax
positions by jurisdiction, including management’s assessment of
the technical merits of tax positions; testing the completeness of
management’s assessment of both the identification of uncertain
tax positions and possible outcomes of each uncertain tax position
by reading correspondence with taxation authorities; and evaluating
the related disclosures in the consolidated financial statements.
Professionals with specialized skill and knowledge were used to
assist in evaluating the status and results of income tax assessments,
including obtaining and reading external legal advice related to
management’s positions, where applicable. These professionals with
specialized skill and knowledge were also used to assist in evaluating
the completeness and measurement of the Company’s uncertain tax
positions, including evaluating the reasonableness of management’s
assessment of whether tax positions are probable of being accepted
by the taxation authority, the application of relevant tax legislation and
estimated interest and penalties.
Chartered Professional Accountants, Licensed Public Accountants
Toronto, Canada
February 14, 2023
We have served as the Company’s auditor since at least 1982. We have
not been able to determine the specific year we began serving as auditor
of the Company.
167
Barrick Gold Corporation | Annual Report 2022INDEPENDENT AUDITOR’S REPORT Consolidated Statements of Income
Barrick Gold Corporation
For the years ended December 31 (in millions of United States dollars, except per share data)
Revenue (notes 5 and 6)
Costs and expenses (income)
Cost of sales (notes 5 and 7)
General and administrative expenses (note 11)
Exploration, evaluation and project expenses (notes 5 and 8)
Impairment charges (reversals) (notes 10 and 21)
Loss on currency translation
Closed mine rehabilitation (note 27b)
Income from equity investees (note 16)
Other (income) expense (note 9)
Income before finance items and income taxes
Finance costs, net (note 14)
Income before income taxes
Income tax expense (note 12)
Net income
Attributable to:
Equity holders of Barrick Gold Corporation
Non-controlling interests (note 32)
Earnings (loss) per share data attributable to the equity holders of Barrick Gold Corporation (note 13)
Net income
Basic
Diluted
The accompanying notes are an integral part of these consolidated financial statements.
2022
$ 11,013
2021
$ 11,985
7,497
159
350
1,671
16
(136)
(258)
(268)
1,982
(301)
1,681
(664)
$ 1,017
$
$
$
$
432
585
0.24
0.24
7,089
151
287
(63)
29
18
(446)
(67)
4,987
(355)
4,632
(1,344)
$ 3,288
$ 2,022
$ 1,266
$
$
1.14
1.14
168
Annual Report 2022 | Barrick Gold CorporationFINANCIAL STATEMENTS
Consolidated Statements
of Comprehensive Income
Barrick Gold Corporation
For the years ended December 31 (in millions of United States dollars)
Net income
Other comprehensive income (loss), net of taxes
Items that may be reclassified subsequently to profit or loss:
Realized losses on derivatives designated as cash flow hedges, net of tax $nil and $nil
Currency translation adjustments, net of tax $nil and $nil
Items that will not be reclassified to profit or loss:
Actuarial gain on post-employment benefit obligations, net of tax $nil and ($1)
Net change in value of equity investments, net of tax ($7) and $8
Total other comprehensive income (loss)
Total comprehensive income
Attributable to:
Equity holders of Barrick Gold Corporation
Non-controlling interests
The accompanying notes are an integral part of these consolidated financial statements.
2022
$ 1,017
2021
$ 3,288
1
1
8
39
49
$ 1,066
$
$
481
585
3
2
2
(44)
(37)
$ 3,251
$ 1,985
$ 1,266
169
Barrick Gold Corporation | Annual Report 2022FINANCIAL STATEMENTS
Consolidated Statements of Cash Flow
Barrick Gold Corporation
For the years ended December 31 (in millions of United States dollars)
OPERATING ACTIVITIES
Net income
Adjustments for the following items:
Depreciation
Finance costs (note 14)1
Net impairment charges (reversals) (notes 10 and 21)
Income tax expense (note 12)
Income from investment in equity investees (note 16)
Loss on currency translation
Gain on sale of non-current assets (note 9)
Change in working capital (note 15)
Other operating activities (note 15)
Operating cash flows before interest and income taxes
Interest paid
Interest received1
Income taxes paid2
Net cash provided by operating activities
INVESTING ACTIVITIES
Property, plant and equipment
Capital expenditures (note 5)
Sales proceeds
Divestitures (note 4)
Investment (purchases) sales
Dividends received from equity method investments (note 16)
Shareholder loan repayments from equity method investments (note 16)
Net cash used in investing activities
FINANCING ACTIVITIES
Lease repayments
Debt repayments
Dividends (note 31)
Return of capital (note 31)
Share buyback program (note 31)
Funding from non-controlling interests (note 32)
Disbursements to non-controlling interests (note 32)
Other financing activities (note 15)
Net cash used in financing activities
Effect of exchange rate changes on cash and equivalents
Net increase (decrease) in cash and equivalents
Cash and equivalents at beginning of year (note 25a)
Cash and equivalents at the end of year
2022
2021
$ 1,017
$ 3,288
1,997
301
1,671
664
(258)
16
(405)
(322)
(217)
4,464
(305)
89
(767)
3,481
2,102
355
(63)
1,344
(446)
29
(213)
(273)
(203)
5,920
(303)
35
(1,274)
4,378
(3,049)
(2,435)
88
–
381
869
–
35
27
(46)
520
2
(1,711)
(1,897)
(20)
(375)
(1,143)
–
(424)
–
(833)
191
(2,604)
(6)
(840)
5,280
$ 4,440
(20)
(7)
(634)
(750)
–
12
(1,104)
115
(2,388)
(1)
92
5,188
$ 5,280
1 2021 figures have been restated to present the change in presentation to present interest received ($35 million) separately from finance costs.
2 Income taxes paid excludes $126 million (2021: $69 million) of income taxes payable that were settled against offsetting VAT receivables.
The accompanying notes are an integral part of these consolidated financial statements.
170
Annual Report 2022 | Barrick Gold CorporationFINANCIAL STATEMENTS
Consolidated Balance Sheets
Barrick Gold Corporation
(in millions of United States dollars)
ASSETS
Current assets
Cash and equivalents (note 25a)
Accounts receivable (note 18)
Inventories (note 17)
Other current assets (note 18)
Total current assets
Non-current assets
Non-current portion of inventory (note 17)
Equity in investees (note 16)
Property, plant and equipment (note 19)
Intangible assets (note 20a)
Goodwill (note 20b)
Deferred income tax assets (note 30)
Other assets (note 22)
Total assets
LIABILITIES AND EQUITY
Current liabilities
Accounts payable (note 23)
Debt (note 25b)
Current income tax liabilities
Other current liabilities (note 24)
Total current liabilities
Non-current liabilities
Debt (note 25b)
Provisions (note 27)
Deferred income tax liabilities (note 30)
Other liabilities (note 29)
Total liabilities
Equity
Capital stock (note 31)
Deficit
Accumulated other comprehensive (loss) income
Other
Total equity attributable to Barrick Gold Corporation shareholders
Non-controlling interests (note 32)
Total equity
Contingencies and commitments (notes 2, 17, 19 and 36)
Total liabilities and equity
The accompanying notes are an integral part of these consolidated financial statements.
Signed on behalf of the Board,
Mark Bristow, Director
J. Brett Harvey, Director
As at
December 31, 2022
As at
December 31, 2021
$ 4,440
$ 5,280
554
1,781
1,690
8,465
2,819
3,983
25,821
149
3,581
19
1,128
623
1,734
612
8,249
2,636
4,594
24,954
150
4,769
29
1,509
$ 45,965
$ 46,890
$ 1,556
$ 1,448
13
163
1,388
3,120
4,769
2,211
3,247
1,329
14,676
28,114
(7,282)
26
1,913
22,771
8,518
31,289
15
285
338
2,086
5,135
2,768
3,293
1,301
14,583
28,497
(6,566)
(23)
1,949
23,857
8,450
32,307
$ 45,965
$ 46,890
171
Barrick Gold Corporation | Annual Report 2022FINANCIAL STATEMENTS
Consolidated Statements
of Changes in Equity
Barrick Gold Corporation
(in millions of United States dollars)
Attributable to equity holders of the Company
Common
Shares
(in thousands)
Capital
stock
Deficit
Accumulated
other
comprehensive
(loss) income1
Total equity
attributable to
shareholders
Non-
controlling
interests
Other2
Total
equity
At January 1, 2022
1,779,331 $ 28,497 $ (6,566)
$
(23) $ 1,949
Net income
Total other comprehensive income
Total comprehensive income
Transactions with owners
Dividends (note 31)
Reko Diq reconstitution (note 4)
Disbursements to non-controlling
interests (note 32)
Dividend reinvestment plan (note 31)
–
–
– $
–
–
– $
432
–
432
–
49
$ 49 $
–
–
–
269
–
–
–
5
(1,143)
–
–
(5)
–
–
–
–
–
–
–
–
–
–
–
–
–
$ 23,857 $ 8,450 $ 32,307
1,017
49
585 $ 1,066
432
49
585
–
481 $
$
(1,143)
–
–
–
–
329
(846)
–
–
(1,143)
329
(846)
–
(424)
Share buyback program (note 31)
(24,250)
(388)
(36)
(424)
Total transactions with owners
(23,981) $
(383) $ (1,148)
$
– $
(36)
$
(1,567) $
(517) $ (2,084)
At December 31, 2022
1,755,350 $ 28,114 $ (7,282)
$ 26 $ 1,913
$ 22,771 $ 8,518 $ 31,289
At January 1, 2021
Net income
Total other comprehensive loss
1,778,190 $ 29,236 $ (7,949)
$ 14 $ 2,040
–
–
–
–
2,022
–
–
(37)
–
–
$ 23,341 $ 8,369 $ 31,710
3,288
1,266
2,022
(37)
–
(37)
Total comprehensive income (loss)
– $
– $ 2,022
$
(37) $
–
$ 1,985 $ 1,266 $ 3,251
Transactions with owners
Dividends (note 31)
Return of capital (note 31)
Acquisition of South Arturo
non-controlling interest (note 4)
Issued on exercise of stock options
Funding from non-controlling
interests (note 32)
Disbursements to non-controlling
interests (note 32)
Dividend reinvestment plan (note 31)
Share-based payments
Total transactions with owners
At December 31, 2021
–
–
–
50
–
–
192
899
–
(750)
(634)
–
–
–
–
–
5
6
–
–
–
–
(5)
–
1,141 $
(639)
1,779,331 $ 28,497 $ (6,566)
(739) $
–
–
–
–
–
–
–
–
–
–
(85)
–
–
–
–
(6)
(634)
(750)
(85)
–
–
–
–
–
–
–
(86)
–
12
(634)
(750)
(171)
–
12
(1,111)
(1,111)
–
–
–
–
$
$
– $
(91)
(23) $ 1,949
$
(1,469) $ (1,185) $ (2,654)
$ 23,857 $ 8,450 $ 32,307
1 Includes cumulative translation adjustments as at December 31, 2022: $93 million loss (December 31, 2021: $94 million loss).
2 Includes additional paid-in capital as at December 31, 2022: $1,875 million (December 31, 2021: $1,911 million).
The accompanying notes are an integral part of these consolidated financial statements.
172
Annual Report 2022 | Barrick Gold CorporationFINANCIAL STATEMENTS
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
Barrick Gold Corporation. Tabular dollar amounts in millions of
United States dollars, unless otherwise shown. References to A$,
ARS, C$, CLP, DOP, EUR, GBP, PGK, SAR, TZS, XOF, ZAR, and ZMW
are to Australian dollars, Argentine pesos, Canadian dollars, Chilean
pesos, Dominican pesos, Euros, British pound sterling, Papua New
Guinea kina, Saudi riyal, Tanzanian shilling, West African CFA franc,
South African rand, and Zambian kwacha, respectively.
1. CORPORATE INFORMATION
Barrick Gold Corporation (“Barrick”, “we” or the “Company”) is a
corporation governed by the Business Corporations Act (British
Columbia). The Company’s corporate office is located at Brookfield
Place, TD Canada Trust Tower, 161 Bay Street, Suite 3700, Toronto,
Ontario, M5J 2S1. The Company’s registered office is 925 West
Georgia Street, Suite 1600, Vancouver, British Columbia, V6C 3L2.
Barrick shares trade on the New York Stock Exchange under the
symbol GOLD and the Toronto Stock Exchange under the symbol
ABX. We are principally engaged in the production and sale of gold
and copper, as well as related activities such as exploration and mine
development. We sell our gold and copper into the world market.
We have ownership interests in producing gold mines that are
located in Argentina, Canada, Côte d’Ivoire, the Democratic Republic
of Congo, the Dominican Republic, Mali, Tanzania and the United
States. Our mine in Papua New Guinea was placed on care and
maintenance in April 2020. We have ownership interests in producing
copper mines in Chile, Saudi Arabia and Zambia. We also have various
projects located throughout the Americas, Asia and Africa.
2. MATERIAL ACCOUNTING POLICY
INFORMATION
a) Statement of Compliance
These consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (“IFRS”)
as issued by the International Accounting Standards Board (“IASB”).
Accounting policies are consistently applied to all years presented,
unless otherwise stated. These consolidated financial statements were
approved for issuance by the Board of Directors on February 14, 2023.
b) Basis of Preparation
These consolidated financial statements include the accounts of
Barrick, its subsidiaries, its share of joint operations (“JO”) and its
equity share of joint ventures (“JV”). For non wholly-owned, controlled
subsidiaries, profit or loss for the period that is attributable to non-
controlling interests is typically calculated based on the ownership of
the minority shareholders in the subsidiary.
173
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Outlined below is information related to our joint arrangements and entities other than 100% owned Barrick subsidiaries at December 31, 2022:
Nevada Gold Mines3,4
North Mara3,5
Bulyanhulu3,5
Buzwagi3,5
Loulo-Gounkoto3
Tongon3
Pueblo Viejo3
Reko Diq Project3,6
Norte Abierto Project
Donlin Gold Project
Porgera Mine7,8
Veladero
Kibali9
Jabal Sayid9
Zaldívar9
Place of business
United States
Tanzania
Tanzania
Tanzania
Mali
Côte d’Ivoire
Dominican Republic
Pakistan
Chile
United States
Papua New Guinea
Argentina
Democratic Republic of Congo
Saudi Arabia
Chile
Entity type
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
JO
JO
JO
JO
JV
JV
JV
Economic interest1
61.5%
84%
84%
84%
80%
89.7%
60%
50%
50%
50%
47.5%
50%
45%
50%
50%
Method2
Consolidation
Consolidation
Consolidation
Consolidation
Consolidation
Consolidation
Consolidation
Consolidation
Our share
Our share
Our share
Our share
Equity Method
Equity Method
Equity Method
1 Unless otherwise noted, all of our JOs are funded by contributions made by the parties sharing joint control in proportion to their economic interest.
2 For our JOs, we recognize our share of any assets, liabilities, revenues and expenses of the JO.
3 We consolidate our interests in Carlin, Cortez, Turquoise Ridge, Phoenix, Long Canyon, North Mara, Bulyanhulu, Buzwagi, Loulo-Gounkoto, Tongon, Pueblo Viejo
and the Reko Diq project and record a non-controlling interest for the interest that we do not own.
4 Included within our 61.5% interest in Carlin is Nevada Gold Mines’ (“NGM”) 60% interest in South Arturo. On September 7, 2021, NGM announced it had entered
into an Exchange Agreement with i-80 Gold to acquire the 40% interest in South Arturo that NGM did not already own in exchange for the Lone Tree and Buffalo
Mountain properties and infrastructure. The exchange transaction closed on October 14, 2021, bringing Barrick’s ownership of South Arturo to 61.5%.
5 The Government of Tanzania receives half of the economic benefits from the Tanzanian operations (Bulyanhulu, Buzwagi and North Mara) from taxes, royalties,
clearing fees and participation in all cash distributions made by the mines, after the recoupment of capital investments. Earnings are recorded proportionally based
on our equity interests each period in accordance with the terms of the agreement with the Government of Tanzania.
6 On December 15, 2022, we completed the reconstitution of the Reko Diq project, bringing Barrick’s interest in the joint operation from 37.5% (equity method) to
50% (consolidated subsidiary). Refer to note 4 for further details.
7 We have joint control given that decisions about relevant activities require unanimous consent of the parties to the joint operation.
8 We recognize our share of Porgera on a 47.5% interest basis, reflecting Barrick’s undisputed ownership position prior to April 24, 2020, and the ownership
position Barrick is asserting in its legal proceedings in the Papua New Guinea (“PNG”) court. On August 16, 2019, the special mining lease (the “SML”) at Porgera
was terminated and on April 24, 2020, the PNG government indicated that the SML would not be extended. On April 9, 2021, the PNG government and Barrick
Nuigini Limited (“BNL”), the 95% owner and operator of the Porgera joint venture, agreed on a partnership for the future ownership and operation of the mine
under a binding Framework Agreement. The Framework Agreement was replaced by the more detailed Porgera Project Commencement Agreement (“PPCA)”,
which became effective on February 3, 2022. Under the terms of the binding PPCA, ownership of Porgera will be held in a new joint venture owned 51% by PNG
stakeholders and 49% by BNL or an affiliate. BNL is jointly owned on a 50/50 basis by Barrick and Zijin Mining Group and therefore Barrick expects to hold a 24.5%
interest in the Porgera mine following the implementation of the PPCA. BNL will retain operatorship of the mine. The parties are working towards the signing of
definitive agreements, at which time, full mine recommencement work will begin. For additional information, see note 35.
9 Barrick has commitments of $558 million relating to its interest in the joint ventures, including purchase obligations disclosed in note 17 and capital commitments
disclosed in note 19.
c) Business Combinations
On the acquisition of a business, the acquisition method of accounting
is used.
d) Foreign Currency Translation
The functional currency of all of our operations is the US dollar. We
translate non-US dollar balances for these operations into US dollars
as follows:
• Property, plant and equipment (“PP&E”), intangible assets and
equity method investments using the rates at the time of acquisition;
• Fair value through other comprehensive income (“FVOCI”) equity
investments using the closing exchange rate as at the balance
sheet date with translation gains and losses permanently recorded
in Other Comprehensive Income (“OCI”);
• Deferred tax assets and liabilities using the closing exchange rate
as at the balance sheet date with translation gains and losses
recorded in income tax expense;
•
• Other assets and liabilities using the closing exchange rate as at
the balance sheet date with translation gains and losses recorded
in other income/expense; and
Income and expenses using the average exchange rate for the
period, except for expenses that relate to non-monetary assets
and liabilities measured at historical rates, which are translated
using the same historical rate as the associated non-monetary
assets and liabilities.
e) Revenue Recognition
We sell our production in the world market through the following
distribution channels: gold bullion is sold in the gold spot market,
to independent refineries or to our non-controlling interest holders;
and gold and copper concentrate is sold to independent smelting or
trading companies.
Gold Bullion Sales
Gold bullion is sold primarily in the London spot market. The sale price
is fixed on the date of sale based on the gold spot price. Generally, we
record revenue from gold bullion sales at the time of physical delivery,
which is also the date that title to the gold passes.
Concentrate Sales
Under the terms of concentrate sales contracts with independent
smelting companies, gold and copper sales prices are provisionally
set on a specified future date after shipment based on market prices.
We record revenues under these contracts at the time of shipment,
which is also when the risk and rewards of ownership pass to the
smelting companies, using forward market gold and copper prices on
the expected date that final sales prices will be determined. Variations
between the price recorded at the shipment date and the actual final
price set under the smelting contracts are caused by changes in market
gold and copper prices, which result in the existence of an embedded
derivative in accounts receivable. The embedded derivative is recorded
at fair value each period until final settlement occurs, with changes
in fair value classified as provisional price adjustments and included
in revenue in the consolidated statement of income and presented
separately in note 6 of these consolidated financial statements.
174
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS Streaming Arrangements
As the deferred revenue on streaming arrangements is considered
variable consideration, an adjustment is made to the transaction price
per unit each time there is a change in the underlying production
profile of a mine (typically in the fourth quarter of each year). The
change in the transaction price per unit results in a cumulative catch-
up adjustment to revenue in the period in which the change is made,
reflecting the new production profile expected to be delivered under
the streaming agreement. A corresponding cumulative catch-up
adjustment is made to accretion expense, reflecting the impact of the
change in the deferred revenue balance.
f) Exploration and Evaluation
Exploration expenditures are the costs incurred in the initial search for
mineral deposits with economic potential or in the process of obtaining
more
information about existing mineral deposits. Exploration
expenditures typically include costs associated with prospecting,
sampling, mapping, diamond drilling and other work involved in
searching for ore.
Evaluation expenditures are the costs incurred to establish the
technical and commercial viability of developing mineral deposits
identified through exploration activities or by acquisition. Evaluation
expenditures include the cost of: (i) establishing the volume and grade
of deposits through drilling of core samples, trenching and sampling
activities in an ore body that is classified as either a mineral resource
or a proven and probable reserve; (ii) determining the optimal methods
of extraction and metallurgical and treatment processes; (iii) studies
related to surveying, transportation and infrastructure requirements;
(iv) permitting activities; and (v) economic evaluations to determine
whether development of the mineralized material is commercially
justified, including scoping, pre-feasibility and final feasibility studies.
Exploration and evaluation expenditures are expensed as incurred
unless management determines that probable future economic
benefits will be generated as a result of the expenditures. Once the
technical feasibility and commercial viability of a program or project
has been demonstrated with a pre-feasibility study, and we have
recognized reserves in accordance with the Canadian Securities
Administrators’ National Instrument 43-101 – Standards of Disclosure
for Mineral Projects, we account for future expenditures incurred in the
development of that program or project in accordance with our policy
for Property, Plant and Equipment, as described in note 2l.
g) Production Stage
A mine that is under construction is determined to enter the production
stage when the project is in the location and condition necessary for it
to be capable of operating in the manner intended by management. We
use the following factors to assess whether these criteria have been
met: (1) the level of capital expenditures compared to construction cost
estimates; (2) the completion of a reasonable period of commissioning
and testing of mine plant and equipment; (3) the ability to produce
minerals in saleable form (within specifications); and (4) the ability to
sustain ongoing production of minerals.
When a mine construction project moves into the production
stage, the capitalization of certain mine construction costs ceases
and costs are either capitalized to inventory or expensed, except for
capitalizable costs related to property, plant and equipment additions
or improvements, open pit stripping activities that provide a future
benefit, underground mine development or expenditures that meet the
criteria for capitalization in accordance with IAS 16 Property, Plant and
Equipment.
h) Taxation
Current tax for each taxable entity is based on the local taxable income
at the local statutory tax rate enacted or substantively enacted at
the balance sheet date and includes adjustments to tax payable or
recoverable in respect of previous periods.
Deferred tax is recognized using the balance sheet method in
respect of all temporary differences between the tax bases of assets
and liabilities, and their carrying amounts for financial reporting
purposes, except as indicated below.
Deferred income tax liabilities are recognized for all taxable
temporary differences, except:
• Where the deferred income tax liability arises from the initial
recognition of goodwill, or the initial recognition of an asset or
liability in an acquisition that is not a business combination and, at
the time of the acquisition, affects neither the accounting profit nor
taxable profit or loss; and
In respect of taxable temporary differences associated with
investments in subsidiaries and interests in joint arrangements,
where the timing of the reversal of the temporary differences can
be controlled and it is probable that the temporary differences will
not reverse in the foreseeable future.
•
Deferred income tax assets are recognized for all deductible temporary
differences and the carry forward of unused tax assets and unused
tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the
carry forward of unused tax assets and unused tax losses can be
utilized, except:
• Where the deferred income tax asset relating to the deductible
temporary difference arises from the initial recognition of an asset
or liability in an acquisition that is not a business combination and,
at the time of the acquisition, affects neither the accounting profit
nor taxable profit or loss; and
In respect of deductible temporary differences associated with
investments in subsidiaries and interests in joint arrangements,
deferred tax assets are recognized only to the extent that it
is probable that the temporary differences will reverse in the
foreseeable future and taxable profit will be available against
which the temporary differences can be utilized.
•
The carrying amount of deferred income tax assets is reviewed at
each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or
part of the deferred income tax asset to be utilized. To the extent that
an asset not previously recognized fulfills the criteria for recognition, a
deferred income tax asset is recorded.
Deferred tax is measured on an undiscounted basis at the tax rates
that are expected to apply in the periods in which the asset is realized
or the liability is settled, based on tax rates and tax laws enacted or
substantively enacted at the balance sheet date.
Current and deferred tax relating to items recognized directly in
equity are recognized in equity and not in the income statement.
The Company is subject to assessments by various taxation
authorities, who may interpret tax legislation differently than the
Company. Tax liabilities for uncertain tax positions are adjusted by
the Company to reflect its best estimate of the probable outcome of
assessments and in light of changing facts and circumstances, such
as the completion of a tax audit, expiration of a statute of limitations,
the refinement of an estimate, and interest accruals associated with
the uncertain tax positions until they are resolved. Some of these
adjustments require significant judgment in estimating the timing and
amount of any additional tax expense.
Royalties and Special Mining Taxes
Income tax expense includes the cost of royalties and special
mining taxes payable to governments that are calculated based on
a percentage of taxable profit whereby taxable profit represents net
income adjusted for certain items defined in the applicable legislation.
175
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Indirect Taxes
Indirect tax recoverable is recorded at its undiscounted amount, and is
disclosed as non-current if not expected to be recovered within twelve
months.
i) Other Investments
Investments in publicly quoted equity securities that are neither
subsidiaries nor associates are categorized as FVOCI pursuant to the
irrevocable election available in IFRS 9 for these instruments. FVOCI
equity investments are recorded at fair value with all realized and
unrealized gains and losses recorded permanently in OCI. Warrant
investments are classified as fair value through profit or loss (“FVPL”).
j) Inventory
Material extracted from our mines is classified as either ore or waste. Ore
represents material that, at the time of extraction, we expect to process
into a saleable form and sell at a profit. Raw materials are comprised of
both ore in stockpiles and ore on leach pads as processing is required
to extract benefit from the ore. Ore is accumulated in stockpiles that
are subsequently processed into gold/copper in a saleable form.
The recovery of gold and copper from certain oxide ores is achieved
through the heap leaching process. Work in process represents gold/
copper in the processing circuit that has not completed the production
process, and is not yet in a saleable form. Finished goods inventory
represents gold/copper in saleable form.
Metal inventories are valued at the lower of cost and net realizable
value. Cost is determined on a weighted average basis and includes
all costs incurred, based on a normal production capacity, in bringing
each product to its present location and condition. Cost of inventories
comprises: direct labor, materials and contractor expenses, including
non-capitalized stripping costs; depreciation on PP&E including
capitalized stripping costs; and an allocation of general and
administrative costs. As ore is removed for processing, costs are
removed based on the average cost per ounce/pound in the stockpile.
Net realizable value is determined with reference to relevant market
prices less applicable variable selling and downstream processing
costs. Inventory provisions are reversed to reflect subsequent
improvements in net realizable value where the inventory is still on hand.
Mine operating supplies represent commodity consumables and
other raw materials used in the production process, as well as spare
parts and other maintenance supplies that are not classified as capital
items. Provisions are recorded to reduce mine operating supplies to
net realizable value, which is generally calculated by reference to its
salvage or scrap value, when it is determined that the supplies are
obsolete.
k) Royalties
Certain of our properties are subject to royalty arrangements based
on mineral production at the properties. The primary type of royalty is
a net smelter return (“NSR”) royalty. Under this type of royalty we pay
the holder an amount calculated as the royalty percentage multiplied
by the value of gold production at market gold prices less third-
party smelting, refining and transportation costs. Royalty expense is
recorded on completion of the production or sales process in cost of
sales. Other types of royalties include:
•
Net profits interest (“NPI”) royalty to a party other than a
government,
• Modified NSR royalty,
• Net smelter return sliding scale (“NSRSS”) royalty,
• Gross proceeds sliding scale (“GPSS”) royalty,
• Gross smelter return (“GSR”) royalty,
• Net value (“NV”) royalty,
• Land tenement (“LT”) royalty, and a
• Gold revenue royalty.
l) Property, Plant and Equipment
Estimated useful lives of Major Asset Categories
Buildings, plant and equipment
Underground mobile equipment
Light vehicles and other mobile equipment
Furniture, computer and office equipment
1 – 38 years
3 – 7 years
1 – 7 years
1 – 7 years
Buildings, Plant and Equipment
At acquisition, we record buildings, plant and equipment at cost,
including all expenditures incurred to prepare an asset for its intended
use. These expenditures consist of: the purchase price; brokers’
commissions; and installation costs including architectural, design
and engineering fees, legal fees, survey costs, site preparation costs,
freight charges, transportation insurance costs, duties, testing and
preparation charges.
Buildings, plant and equipment are depreciated on a straight-line
basis over their expected useful life, which commences when the
assets are considered available for use. Once buildings, plant and
equipment are considered available for use, they are measured at cost
less accumulated depreciation and applicable impairment losses.
Depreciation on equipment utilized in the development of assets,
including open pit and underground mine development, is recapitalized
as development costs attributable to the related asset.
Mineral Properties
Mineral properties consist of: the fair value attributable to mineral
reserves and resources acquired in a business combination or asset
acquisition; underground mine development costs; open pit mine
development costs; capitalized exploration and evaluation costs;
and capitalized interest. In addition, we incur project costs which are
generally capitalized when the expenditures result in a future benefit.
i) Acquired Mining Properties
On acquisition of a mining property, we prepare an estimate of the
fair value attributable to the proven and probable mineral reserves,
mineral resources and exploration potential attributable to the
property. The estimated fair value attributable to the mineral reserves
and the portion of mineral resources considered to be probable of
economic extraction at the time of the acquisition is depreciated on
a units of production (“UOP”) basis whereby the denominator is the
proven and probable reserves and the portion of mineral resources
considered to be probable of economic extraction based on the
current life of mine (“LOM”) plan that benefit from the development
and are considered probable of economic extraction. The estimated
fair value attributable to mineral resources that are not considered to
be probable of economic extraction at the time of the acquisition is
not subject to depreciation until the resources become probable of
economic extraction in the future. The estimated fair value attributable
to exploration licenses is recorded as an intangible asset and is not
subject to depreciation until the property enters production.
ii) Underground Mine Development Costs
At our underground mines, we incur development costs to build new
shafts, drifts and ramps that will enable us to physically access ore
underground. The time over which we will continue to incur these costs
depends on the mine life. These underground development costs are
capitalized as incurred.
Capitalized underground development costs are depreciated on a
UOP basis, whereby the denominator is the estimated ounces/pounds
of gold/copper in proven and probable reserves and the portion of
resources considered probable of economic extraction based on
the current LOM plan that benefit from the development and are
considered probable of economic extraction.
176
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
iii) Open Pit Mine Development Costs
In open pit mining operations, it is necessary to remove overburden
and other waste materials to access ore from which minerals can be
extracted economically. The process of mining overburden and waste
materials is referred to as stripping. Stripping costs incurred in order
to provide initial access to the ore body (referred to as pre-production
stripping) are capitalized as open pit mine development costs.
Pre-production stripping costs are capitalized until an “other
than de minimis” level of mineral is extracted, after which time such
costs are either capitalized to inventory or, if it qualifies as an open pit
stripping activity that provides a future benefit, to PP&E. We consider
various relevant criteria to assess when an “other than de minimis”
level of mineral is produced. Some of the criteria considered would
include, but are not limited to, the following: (1) the amount of minerals
mined versus total ounces in ore expected over the LOM; (2) the
amount of ore tonnes mined versus total LOM expected ore tonnes
mined; (3) the current stripping ratio versus the strip ratio expected
over the LOM; and (4) the ore grade mined versus the grade expected
over the LOM.
Stripping costs incurred during the production stage of an open pit
are accounted for as costs of the inventory produced during the period
that the stripping costs are incurred, unless these costs are expected
to provide a future economic benefit to an identifiable component of
the ore body. Components of the ore body are based on the distinct
development phases identified by the mine planning engineers when
determining the optimal development plan for the open pit. Production
phase stripping costs generate a future economic benefit when the
related stripping activity: (1) improves access to a component of
the ore body to be mined in the future; (2) increases the fair value of
the mine (or open pit) as access to future mineral reserves becomes
less costly; and (3) increases the productive capacity or extends the
productive life of the mine (or open pit). Production phase stripping
costs that are expected to generate a future economic benefit are
capitalized as open pit mine development costs.
Capitalized open pit mine development costs are depreciated on a
UOP basis whereby the denominator is the estimated ounces/pounds
of gold/copper in proven and probable reserves and the portion of
resources considered probable of economic extraction based on
the current LOM plan that benefit from the development and are
considered probable of economic extraction.
Construction-in-Progress
Assets under construction are capitalized as construction-in-progress
until the asset is available for use. The cost of construction-in-progress
comprises its purchase price and any costs directly attributable to
bringing it into working condition for its intended use. Construction-in-
progress amounts related to development projects are included in the
carrying amount of the development project. Construction-in-progress
amounts incurred at operating mines are presented as a separate asset
within PP&E. Construction-in-progress also includes deposits on long
lead items. Construction-in-progress is not depreciated. Depreciation
commences once the asset is complete, commissioned and available
for use.
Capitalized Interest
We capitalize interest costs for qualifying assets. Qualifying assets
are assets that require a significant amount of time to prepare for
their intended use, including projects that are in the exploration
and evaluation, development or construction stages. Qualifying
assets also include significant expansion projects at our operating
mines. Capitalized interest costs are considered an element of the
cost of the qualifying asset which is determined based on gross
expenditures incurred on an asset. Capitalization ceases when the
asset is substantially complete or if active development is suspended
or ceases. Where the funds used to finance a qualifying asset form
part of general borrowings, the amount capitalized is calculated using
a weighted average of rates applicable to the relevant borrowings
during the period. Where funds borrowed are directly attributable to
a qualifying asset, the amount capitalized represents the borrowing
costs specific to those borrowings. Where surplus funds available out
of money borrowed specifically to finance a project are temporarily
invested, the total capitalized interest is reduced by income generated
from short-term investments of such funds.
m) Impairment (and Reversals of Impairment)
of Non-Current Assets
We review and test the carrying amounts of PP&E and intangible
assets with finite lives when an indicator of impairment is considered
to exist. Impairment assessments on PP&E and intangible assets are
conducted at the level of the cash generating unit (“CGU”), which is the
lowest level for which identifiable cash flows are largely independent
of the cash flows of other assets and includes liabilities specific to the
CGU. For operating mines and projects, the individual mine/project
represents a CGU for impairment testing.
The recoverable amount of a CGU is the higher of Value in Use
(“VIU”) and Fair Value Less Costs of Disposal (“FVLCD”). We have
determined that the FVLCD is greater than the VIU amounts and is
therefore used as the recoverable amount for impairment testing
purposes. An impairment loss is recognized for any excess of the
carrying amount of a CGU over its recoverable amount where both the
recoverable amount and carrying value include the associated other
assets and liabilities, including taxes where applicable, of the CGU.
Where it is not appropriate to allocate the loss to a separate asset, an
impairment loss related to a CGU is allocated to the carrying amount
of the assets of the CGU on a pro rata basis based on the carrying
amount of its non-monetary assets.
Impairment Reversal
An assessment is made at each reporting date to determine whether
there is an indication that previously recognized impairment losses
may no longer exist or may have decreased. A previously recognized
impairment loss is reversed only if there has been a change in the
assumptions used to determine the CGU’s recoverable amount since
the last impairment loss was recognized. This reversal is recognized
in the consolidated statements of income and is limited to the carrying
value that would have been determined, net of any depreciation where
applicable, had no impairment charge been recognized in prior years.
When an impairment reversal is undertaken, the recoverable amount
is assessed by reference to the higher of VIU and FVLCD. We have
determined that the FVLCD is greater than the VIU amounts and is
therefore used as the recoverable amount for impairment testing
purposes.
n) Intangible Assets
On acquisition of a mineral property in the exploration stage, we prepare
an estimate of the fair value attributable to the exploration licenses
acquired, including the fair value attributable to mineral resources,
if any, of that property. The fair value of the exploration license is
recorded as an intangible asset (acquired exploration potential) as at
the date of acquisition. When an exploration stage property moves
into development, the acquired exploration potential attributable to
that property is transferred to mining interests within PP&E.
We also have water rights associated with our mineral properties.
Upon acquisition, they are measured at initial cost and are depreciated
when they are being used. They are also subject to impairment testing
when an indicator of impairment is considered to exist.
o) Goodwill
Goodwill is tested for impairment in the fourth quarter and also when
there is an indicator of impairment. At the date of acquisition, goodwill
is assigned to the CGU or group of CGUs that is expected to benefit
from the synergies of the business combination. For the purposes of
impairment testing, goodwill is allocated to the Company’s operating
segments, which are our individual minesites, and corresponds to the
level at which goodwill is internally monitored by the Chief Operating
Decision Maker (“CODM”). Goodwill impairment charges are not
reversible.
p) Debt
Debt is recognized initially at fair value, net of financing costs incurred,
and subsequently measured at amortized cost. Any difference between
the amounts originally received and the redemption value of the debt is
recognized in the consolidated statements of income over the period
to maturity using the effective interest method.
177
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS q) Environmental Rehabilitation Provision
Mining, extraction and processing activities normally give rise to
obligations
for environmental rehabilitation. Rehabilitation work
can include facility decommissioning and dismantling; removal or
treatment of waste materials; site and land rehabilitation, including
compliance with and monitoring of environmental regulations; security
and other site-related costs required to perform the rehabilitation
work; and operation of equipment designed to reduce or eliminate
environmental effects. The extent of work required and the associated
costs are dependent on the requirements of relevant authorities and
our environmental policies. Routine operating costs that may impact
the ultimate closure and rehabilitation activities, such as waste material
handling conducted as an integral part of a mining or production
process, are not included in the provision. Abnormal costs arising
from unforeseen circumstances, such as the contamination caused
by unplanned discharges, are recognized as an expense and liability
when the event that gives rise to an obligation occurs and reliable
estimates of the required rehabilitation costs can be made.
Provisions for the cost of each rehabilitation program are normally
recognized at the time that an environmental disturbance occurs or a
new legal or constructive obligation is determined. When the extent
of disturbance increases over the life of an operation, the provision
is increased accordingly. The major parts of the carrying amount of
provisions relate to closure/rehabilitation of tailings facilities, heap
leach pads and waste dumps; demolition of buildings/mine facilities;
ongoing water treatment; and ongoing care and maintenance and
security of closed mines. Costs included in the provision encompass
all closure and rehabilitation activity expected to occur progressively
over the life of the operation at the time of closure and post-closure
in connection with disturbances as at the reporting date. Estimated
costs included in the determination of the provision reflect the risks
and probabilities of alternative estimates of cash flows required
to settle the obligation at each particular operation. The expected
rehabilitation costs are estimated based on the cost of external
contractors performing the work or the cost of performing the work
internally depending on management’s intention.
The timing of the actual rehabilitation expenditure is dependent
upon a number of factors such as the life and nature of the asset, the
operating license conditions and the environment in which the mine
operates. Expenditures may occur before and after closure and can
continue for an extended period of time depending on rehabilitation
requirements. Rehabilitation provisions are measured at the expected
value of future cash flows, which exclude the effect of inflation,
discounted to their present value using a current US dollar real risk-
free pre-tax discount rate. The unwinding of the discount, referred to
as accretion expense, is included in finance costs and results in an
increase in the amount of the provision. Provisions are updated each
reporting period for changes to expected cash flows and for the effect
of changes in the discount rate, and the change in estimate is added
or deducted from the related asset and depreciated over the expected
economic life of the operation to which it relates.
Significant judgments and estimates are involved in forming
expectations of future activities, the amount and timing of the
associated cash flows and the period over which we estimate
those cash flows. Those expectations are formed based on existing
environmental and regulatory requirements or, if more stringent, our
environmental policies which give rise to a constructive obligation.
When provisions for closure and rehabilitation are
initially
recognized, the corresponding cost is capitalized as an asset,
representing part of the cost of acquiring the future economic benefits
of the operation. The capitalized cost of closure and rehabilitation
activities is recognized in PP&E and depreciated over the expected
economic life of the operation to which it relates.
Adjustments to the estimated amount and timing of future closure
and rehabilitation cash flows are a normal occurrence in light of the
significant judgments and estimates involved. The principal factors
that can cause expected cash flows to change are: the construction
of new processing facilities; changes in the quantities of material in
reserves and resources with a corresponding change in the life of mine
plan; changing ore characteristics that impact required environmental
protection measures and related costs; changes in water quality or
volumes that impact the extent of water treatment required; changes
in discount rates; changes in foreign exchange rates; changes in
Barrick’s closure policies; and changes in laws and regulations
governing the protection of the environment.
Rehabilitation provisions are adjusted as a result of changes in
estimates and assumptions. Those adjustments are accounted for as
a change in the corresponding cost of the related assets, including
the related mineral property, except where a reduction in the provision
is greater than the remaining net book value of the related assets, in
which case the value is reduced to nil and the remaining adjustment
is recognized in the consolidated statements of income. In the case of
closed sites, changes in estimates and assumptions are recognized
immediately in the consolidated statements of income. For an
operating mine, the adjusted carrying amount of the related asset
is depreciated prospectively. Adjustments also result in changes to
future finance costs. Provisions are discounted to their present value
using a current US dollar real risk-free pre-tax discount rate and the
accretion expense is included in finance costs.
r) Stock-Based Compensation
We recognize the expense related to these plans over the vesting
period, beginning once the grant has been approved and announced
to the beneficiaries.
Barrick offers cash-settled (Restricted Share Units (“RSU”),
Deferred Share Units (“DSU”) and Performance Granted Share Units
(“PGSU”)) awards to certain employees, officers and directors of the
Company.
Restricted Share Units
Under our Long-Term Incentive Plan, selected employees are granted
RSUs where each RSU has a value equal to one Barrick common
share. RSUs generally vest within three years in cash and the after-tax
value of the award may be used to purchase common shares on the
open market, depending on the terms of the grant. Additional RSUs
are credited to reflect dividends paid on Barrick common shares over
the vesting period.
A liability for RSUs is measured at fair value on the grant date
and is subsequently adjusted for changes in fair value. The liability
is recognized on a straight-line basis over the vesting period, with a
corresponding charge to compensation expense, as a component of
general and administrative expenses and cost of sales. Compensation
expenses for RSUs incorporate an estimate for expected forfeiture
rates based on which the fair value is adjusted.
Deferred Share Units
Under our DSU plan, Directors must receive at least 63.6% of their
basic annual retainer in the form of DSUs or cash to purchase common
shares that cannot be sold, transferred or otherwise disposed of until
the Director leaves the Board. Each DSU has the same value as one
Barrick common share. DSUs must be retained until the Director
leaves the Board, at which time the cash value of the DSUs is paid
out. Additional DSUs are credited to reflect dividends paid on Barrick
common shares. The initial fair value of the liability is calculated as of
the grant date and is recognized immediately. Subsequently, at each
reporting date and on settlement, the liability is remeasured, with any
change in fair value recorded as compensation expense in the period.
178
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS Performance Granted Share Units
Under our PGSU plan, selected employees are granted PGSUs, where
each PGSU has a value equal to one Barrick common share. Annual
PGSU awards are determined based on a multiple ranging from three to
six times base salary (depending on position and level of responsibility)
multiplied by a performance factor. The number of PGSUs granted
to a plan participant is determined by dividing the dollar value of the
award by the closing price of Barrick common shares on the day prior
to the grant, or if the grant date occurs during a blackout period, by
the greater of (i) the closing price of Barrick common shares on the
day prior to the grant date and (ii) the closing price of Barrick common
shares on the first day following the expiration of the blackout.
PGSUs vest within three years in cash, and the after-tax value of
the award is used to purchase common shares on the open market.
Generally, these shares cannot be sold until the employee meets their
share ownership requirement (in which case only those Barrick shares
in excess of the requirement can be sold), or until they retire or leave
the company.
The initial fair value of the liability is calculated as of the grant date
and is recognized within compensation expense using the straight-line
method over the vesting period. Subsequently, at each reporting date
and on settlement, the liability is remeasured, with any changes in fair
value recorded as compensation expense.
s) New Accounting Standards Issued But Not Yet Effective
Certain new accounting standards and interpretations have been
published that are not mandatory for the current period and have
not been early adopted. These standards are not expected to have a
material impact on Barrick in the current or future reporting periods.
3. CRITICAL JUDGMENTS, ESTIMATES,
ASSUMPTIONS AND RISKS
Many of the amounts included in the consolidated balance sheet
require management to make judgments and/or estimates. These
judgments and estimates are continuously evaluated and are based
on management’s experience and knowledge of the relevant facts
and circumstances. Actual results may differ from the estimates.
Information about such judgments and estimates is contained in
the description of our accounting policies and/or other notes to the
financial statements. The key areas where judgments, estimates and
assumptions have been made are summarized below.
Life of Mine Plans and Reserves and Resources
Estimates of the quantities of proven and probable mineral reserves
and mineral resources form the basis for our LOM plans, which are
used for a number of important business and accounting purposes,
including: the calculation of depreciation expense; the capitalization
the current/non-current
of production phase stripping costs;
classification of inventory; the recognition of deferred revenue related
to streaming arrangements and forecasting the timing of the payments
related to the environmental rehabilitation provision. In addition, the
underlying LOM plans are used in the impairment tests for goodwill
and non-current assets. In certain cases, these LOM plans have
made assumptions about our ability to obtain the necessary permits
required to complete the planned activities. We estimate our mineral
reserves and resources based on information compiled by qualified
persons as defined in accordance with the Canadian Securities
Administrators’ National Instrument 43-101 – Standards of Disclosure
for Mineral Projects requirements. To calculate our gold and copper
mineral reserves, as well as measured, indicated, and inferred mineral
resources, we have used the following assumptions. Refer to notes
19 and 21.
Gold ($/oz)
Mineral reserves
Measured, indicated and inferred
Copper ($/lb)
Mineral reserves
Measured, indicated and inferred
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$ 1,300
1,700
$ 1,200
1,500
3.00
3.75
2.75
3.50
Inventory
The measurement of inventory including the determination of its
net realizable value, especially as it relates to ore in stockpiles and
recoverable from leach pads, involves the use of estimates. Net
realizable value is determined with reference to relevant market prices
less applicable variable selling expenses. Estimation is also required
in determining the tonnage, recoverable gold and copper contained
therein, and in determining the remaining costs of completion to bring
inventory into its saleable form. Judgment also exists in determining
whether to recognize a provision for obsolescence on mine operating
supplies, and estimates are required to determine salvage or scrap
value of supplies.
Estimates of recoverable gold or copper on the leach pads
are calculated from the quantities of ore placed on the leach pads
(measured tonnes added to the leach pads), the grade of ore placed
on the leach pads (based on assay data) and a recovery percentage
(based on ore type).
Impairment and Reversal of Impairment for
Non-Current Assets and Impairment of Goodwill
Goodwill and non-current assets are tested for impairment if there
is an indicator of impairment or reversal of impairment, and in the
case of goodwill annually during the fourth quarter, for all of our
operating segments. We consider both external and internal sources
of information for indications that non-current assets and/or goodwill
are impaired. External sources of information we consider include
changes in the market, economic, legal and permitting environment
in which the CGU operates that are not within its control and affect
the recoverable amount of mining interests and goodwill. Internal
sources of information we consider include the manner in which
mining properties and plant and equipment are being used or are
expected to be used and indications of economic performance of the
assets. Calculating the FVLCD of CGUs for non-current asset and
goodwill impairment tests requires management to make estimates
and assumptions with respect to future production levels, operating,
capital and closure costs in our LOM plans, future metal prices,
foreign exchange rates, Net Asset Value (“NAV”) multiples, fair value
of mineral resources outside LOM plans, the market values per ounce
and per pound and weighted average costs of capital. Changes in any
of the assumptions or estimates used in determining the fair values
could impact the impairment analysis. Refer to notes 2m, 2o and 21
for further information.
Provisions for Environmental Rehabilitation
Management assesses its provision for environmental rehabilitation
on an annual basis or when new information becomes available. This
assessment includes the estimation of the future rehabilitation costs
(including water treatment), the timing of these expenditures, and
the impact of changes in discount rates and foreign exchange rates.
The actual future expenditures may differ from the amounts currently
provided if the estimates made are significantly different than actual
results or if there are significant changes in environmental and/or
regulatory requirements in the future. Refer to notes 2q and 27 for
further information.
179
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Taxes
Management is required to assess uncertainties and make judgments
and estimations regarding the tax basis of assets and liabilities and
related deferred income tax assets and liabilities, amounts recorded
for uncertain tax positions, the measurement of income tax expense
and indirect taxes such as royalties and export duties, and estimates
of the timing of repatriation of earnings, which would impact the
recognition of withholding taxes and taxes related to the outside
basis on subsidiaries/associates. While these amounts represent
management’s best estimate based on the laws and regulations that
exist at the time of preparation, we operate in certain jurisdictions that
have increased degrees of political and sovereign risk and while host
governments have historically supported the development of natural
resources by foreign companies, tax legislation in these jurisdictions is
developing and there is a risk that fiscal reform changes with respect
to existing investments could unexpectedly impact application of this
tax legislation. Such changes could impact the Company’s judgments
about the amounts recorded for uncertain tax positions, tax basis
of assets and liabilities, and related deferred income tax assets and
liabilities, and estimates of the timing of repatriation of earnings. This
could necessitate future adjustments to tax income and expense
already recorded. A number of these estimates require management
to make estimates of future taxable profit, as well as the recoverability
of indirect taxes, and if actual results are significantly different than our
estimates, the ability to realize the deferred tax assets and indirect tax
receivables recorded on our balance sheet could be impacted. Refer
to notes 2h, 12, 30 and 35 for further information.
Contingencies
Contingencies can be either possible assets or possible liabilities
arising from past events which, by their nature, will only be resolved
when one or more future events not wholly within our control occur or
fail to occur. The assessment of such contingencies inherently involves
the exercise of significant judgment and estimates of the outcome
of future events. In assessing loss contingencies related to legal
proceedings that are pending against us or unasserted claims that
may result in such proceedings or regulatory or government actions
that may negatively impact our business or operations, the Company
with assistance from its legal counsel evaluates the perceived merits
of any legal proceedings or unasserted claims or actions as well as the
perceived merits of the nature and amount of relief sought or expected
to be sought, when determining the amount, if any, to recognize as
a contingent liability or assessing the impact on the carrying value
of assets. If the assessment of a contingency suggests that a loss
is probable, and the amount can be reliably estimated, then a loss is
recorded. When a contingent loss is not probable but is reasonably
possible, or is probable but the amount of loss cannot be reliably
estimated, then details of the contingent loss are disclosed. Loss
contingencies considered remote are generally not disclosed unless
they involve guarantees, in which case we disclose the nature of the
guarantee. Contingent assets are not recognized in the consolidated
financial statements. Refer to note 35 for more information.
Pascua-Lama Value Added Tax
The Pascua-Lama project received $457 million as at December 31,
2022 ($411 million as at December 31, 2021) in value added tax (“VAT”)
refunds in Chile relating to the development of the Chilean side of the
project. Under the current arrangement, this amount must be repaid if
the project does not evidence exports for an amount of $3,538 million
within a term that expires on December 31, 2026, unless extended. On
July 11, 2022, the Chilean government proposed changes to Chilean
law (proposal updated further on January 10, 2023) on VAT refunds
that may affect the timeframe of these refunds.
In addition, we have recorded $31 million in VAT recoverable in
Argentina as at December 31, 2022 ($48 million as at December 31,
2021) relating to the development of the Argentinean side of the
project. These amounts may not be fully recoverable if the project
does not enter into production and are subject to foreign currency risk
as the amounts are recoverable in Argentine pesos.
Streaming Transactions
The upfront cash deposit received from Royal Gold on the gold and
silver streaming transaction for production linked to Barrick’s 60%
interest in the Pueblo Viejo mine has been accounted for as deferred
revenue since we have determined that it is not a derivative as it will
be satisfied through the delivery of non-financial items (i.e., gold and
silver) rather than cash or financial assets. It is our intention to settle
the obligations under the streaming arrangement through our own
production and if we were to fail to settle the obligations with Royal
Gold through our own production, this would lead to the streaming
arrangement becoming a derivative. This would cause a change to
the accounting treatment, resulting in the revaluation of the fair value
of the agreement through profit and loss on a recurring basis. Refer to
note 29 for further details.
The deferred revenue component of our streaming agreements is
considered variable and is subject to retroactive adjustment when there
is a change in the timing of the delivery of ounces or in the underlying
production profile of the relevant mine. The impact of such a change
in the timing or quantity of ounces to be delivered under a streaming
agreement will result in retroactive adjustments to both the deferred
revenue recognized and the accretion recorded prior to the date of the
change. Refer to note 2e. For further details on streaming transactions,
including our silver sale agreement with Wheaton Precious Metals
Corp. (“Wheaton”), refer to note 29.
Consolidation of Reko Diq
On December 15, 2022, the Reko Diq project was reconstituted, and is
50% held by Barrick and 50% by Pakistani stakeholders, comprising
a 10% free-carried, non-contributing share held by the Provincial
Government of Balochistan, an additional 15% held by a special
purpose company owned by the Provincial Government of Balochistan
and 25% owned by other federal state-owned enterprises. As outlined
in the joint venture agreement, Barrick has power over the relevant
activities of the project, including operatorship of the project, the
decision to proceed with development of the project, subject to a
sufficient expected rate of return, as well as development and approval
of LOM plans. Therefore Barrick has concluded that it controls Reko
Diq and it is consolidated in Barrick’s consolidated financial statements
with a 50% non-controlling interest.
180
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS OTHER NOTES TO THE FINANCIAL STATEMENTS
Note Page
Acquisitions and Divestitures
Segment Information
Revenue
Cost of Sales
Exploration, Evaluation and Project Expenses
Other Expense (Income)
Impairment Charges (Reversals)
General and Administrative Expenses
Income Tax Expense
Earnings (Loss) Per Share
Finance Costs, Net
Cash Flow – Other Items
Investments
Inventories
Accounts Receivable and Other Current Assets
Property, Plant and Equipment
Goodwill and other Intangible Assets
Impairment and Reversal of Non-Current Assets
Other Assets
Accounts Payable
Other Current Liabilities
Financial Instruments
Fair Value Measurements
Provisions
Financial Risk Management
Other Non-Current Liabilities
Deferred Income Taxes
Capital Stock
Non-Controlling Interests
Related Party Transactions
Stock-Based Compensation
Contingencies
4
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9
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11
12
13
14
15
16
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18
19
20
21
22
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35
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206
207
207
4. ACQUISITIONS AND DIVESTITURES
a) Reko Diq
On December 15, 2022, Barrick completed the reconstitution of the
Reko Diq project in Pakistan’s Balochistan province. The completion
of this transaction involved, among other things, the execution of
all of the definitive agreements including the mineral agreement
stabilizing the fiscal regime applicable to the project, as well as the
grant of the mining leases, an exploration license, and surface rights.
This completed the process that began earlier in 2022 following
the conclusion of a framework agreement among the Governments
of Pakistan and Balochistan province, Barrick and Antofagasta plc,
which provided a path for the development of the project under a
reconstituted structure.
The reconstituted project is held 50% by Barrick and 50%
by Pakistani stakeholders, comprising a 10% free-carried, non-
contributing share held by the Provincial Government of Balochistan,
an additional 15% held by a special purpose company owned by
the Provincial Government of Balochistan and 25% owned by other
federal state-owned enterprises. Barrick is the operator of the project.
Barrick began consolidating Reko Diq as at December 31, 2022.
In the fourth quarter of 2022, upon the reconstitution of the project,
we recorded an impairment reversal of $120 million relating to the
carrying value of our equity method investment in the Reko Diq project
that we fully impaired in 2012 and had a 37.5% interest in. We also
recognized a gain of $300 million in other income as Barrick’s interest
in the Reko Diq project increased from 37.5% to 50%. In addition,
we recognized a non-controlling interest of $329 million, based on the
historical cost attributed to the project company. A total of $744 million
was recorded as mining property costs not subject to depreciation.
Furthermore, the payments made by the Provincial Government
of Balochistan and other federal state-owned enterprises for the
in aggregate 40% interest, and to fund Antofagasta plc’s exit from
the reconstituted project, remain in an entity that is consolidated by
Barrick as at December 31, 2022. Those funds are held in a restricted
bank account and are expected to be distributed to Antofagasta plc
within the next 12 months. Accordingly, this restricted cash has been
recorded as an other current asset and the liability to Antofagasta plc
has been recorded as an other current liability.
The reconstitution resolves the damages originally awarded by
the International Centre for the Settlement of Investment Disputes
and disputed in the International Chamber of Commerce. For further
details refer to notes 21 and 35.
b) Lagunas Norte
On February 16, 2021, Barrick announced it had entered into an
agreement to sell its 100% interest in the Lagunas Norte gold mine
in Peru to Boroo Pte Ltd. (“Boroo”) for total consideration of up to
$81 million, with $20 million of cash consideration on closing, additional
cash consideration of $10 million payable on the first anniversary
of closing and $20 million payable on the second anniversary of
closing, a 2% NSR royalty, which may be purchased by Boroo for a
fixed period after closing for $16 million, plus a contingent payment
of up to $15 million based on the two-year average gold price. An
impairment reversal of $86 million was recognized in the first quarter
of 2021. Refer to note 21 for further details. The transaction closed
on June 1, 2021 and we recognized a gain on sale of $4 million in the
second quarter of 2021 based on a final fair value of consideration
of $65 million. We remain contractually liable for all tax matters that
existed prior to our divestiture until these matters are resolved. In
addition, Boroo assumed 50% of the $173 million reclamation bond
obligations for Lagunas Norte upon closing. Boroo was to assume
the other 50% within one year of closing; however, this was extended
until June 1, 2023. Barrick has no liability related to Lagunas Norte’s
closure obligation recorded in the financial statements.
c) Acquisition of South Arturo Non-Controlling Interest
On September 7, 2021, Barrick announced NGM had entered into
a definitive asset exchange agreement (the “Exchange Agreement”)
with i-80 Gold Corp. (“i-80 Gold”) to acquire the 40% interest in South
Arturo that NGM did not already own, in exchange for the Lone Tree
and Buffalo Mountain properties and infrastructure, which were in care
and maintenance at the time. The exchange transaction closed on
October 14, 2021.
The Exchange Agreement provides for payment to NGM of
contingent consideration of up to $50 million based on mineral
resources from the Lone Tree property. In connection with the asset
exchange, NGM also entered into toll-milling agreements providing
i-80 Gold with interim processing capacity at NGM’s autoclave facilities
until the earlier of the three-year anniversary of the asset exchange and
the date on which the Lone Tree facility is operational, and separately
at NGM’s roaster facilities for a 10-year period, which was assigned
a fair value of $nil. In addition, each party assumed the environmental
liabilities and closure bonding for their acquired properties. In
conjunction with the closing of the transaction on October 14, 2021,
NGM subscribed for $48 million in common shares of i-80 Gold.
181
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS We assigned a fair value of $175 million to the transaction and
recognized a gain of $205 million in the fourth quarter of 2021 in relation
to the disposition of Lone Tree. Lone Tree was in a net liability position,
which resulted in a gain that exceeded the fair value. In addition, we
recognized a loss of $85 million in equity in the fourth quarter of 2021,
representing our share of the difference between the carrying value
of the South Arturo non-controlling interest and the fair value of the
transaction.
5. SEGMENT INFORMATION
Barrick’s business is organized into eighteen minesites. Barrick’s
CODM (Mark Bristow, President and Chief Executive Officer) reviews
the operating results, assesses performance and makes capital
allocation decisions at the minesite, and/or project level. Each
individual minesite is an operating segment for financial reporting
purposes. Our presentation of our reportable operating segments
consists of nine gold mines (Carlin, Cortez, Turquoise Ridge, Pueblo
Viejo, Loulo-Gounkoto, Kibali, Veladero, North Mara and Bulyanhulu).
The remaining operating segments, including our remaining gold and
copper mines, have been grouped into an “Other Mines” category and
will not be reported on individually. Segment performance is evaluated
based on a number of measures including operating income before
tax, production levels and unit production costs. Certain costs are
managed on a consolidated basis and are therefore not reflected in
segment income.
CONSOLIDATED STATEMENTS OF INCOME INFORMATION
Cost of Sales
Site operating
costs,
royalties and
community
For the year ended December 31, 2022
Carlin2
Cortez2
Turquoise Ridge2
Pueblo Viejo2
Loulo-Gounkoto2
Kibali
Veladero
North Mara2
Bulyanhulu2
Other Mines2
Reportable segment total
Share of equity investee
Segment total
Revenue
$ 2,848
1,316
814
1,303
1,236
598
365
570
463
2,056
$ 11,569
(598)
$ 10,971
$
$
relations Depreciation
$ 1,416
$
597
469
559
533
235
205
236
235
1,223
5,708
(235)
5,473
$
$
312
253
178
242
257
178
120
73
60
482
2,155
(178)
1,977
CONSOLIDATED STATEMENTS OF INCOME INFORMATION
Cost of Sales
Site operating
costs,
royalties and
community
For the year ended December 31, 2021
Carlin2
Cortez2
Turquoise Ridge2
Pueblo Viejo2
Loulo-Gounkoto2
Kibali
Veladero
North Mara2
Bulyanhulu2
Other Mines2
Reportable segment total
Share of equity investee
Segment total
Revenue
$ 2,687
1,485
987
1,514
1,249
661
382
552
361
2,659
$ 12,537
(661)
$ 11,876
$
$
relations Depreciation
$ 1,175
$
633
415
505
454
232
177
240
155
1,179
5,165
(232)
4,933
$
$
276
294
200
234
278
141
85
56
57
580
2,201
(141)
2,060
Exploration,
evaluation
and project
expenses
$
21
12
7
24
9
2
2
4
3
19
103
(2)
101
22
10
1
5
18
5
1
–
–
10
72
(5)
67
$
$
$
$
Exploration,
evaluation
and project
expenses
$
Other
expenses
(income)1
(15)
$
4
–
17
11
41
6
48
25
75
212
(41)
171
$
$
Other
expenses
(income)1
25
$
1
–
11
25
5
1
2
2
81
153
(5)
148
$
$
$
Segment
income
(loss)
1,114
450
160
461
426
142
32
209
140
257
3,391
(142)
3,249
$
$
Segment
income
(loss)
$ 1,189
547
371
759
474
278
118
254
147
809
4,946
(278)
4,668
$
$
1 Includes accretion expense, which is included with finance costs in the consolidated statements of income. For the year ended December 31, 2022, accretion
expense was $36 million (2021: $26 million).
2 Includes non-controlling interest portion of revenues, cost of sales and segment income (loss) for the year ended December 31, 2022, for Pueblo Viejo,
$528 million, $319 million, $195 million (2021: $617 million, $294 million, $318 million), Nevada Gold Mines, $2,146 million, $1,422 million, $711 million (2021:
$2,362 million, $1,359 million, $991 million), North Mara, Bulyanhulu and Buzwagi, $165 million, $97 million, $55 million (2021: $159 million, $92 million, $63 million),
Loulo-Gounkoto, $247 million, $158 million, $88 million (2021: $250 million, $146 million, $95 million) and Tongon, $37 million, $36 million, $nil (2021: $38 million,
$32 million, $5 million).
182
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION OF SEGMENT INCOME TO INCOME BEFORE INCOME TAXES
For the years ended December 31
Segment income
Other revenue
Other cost of sales/amortization
Exploration, evaluation and project expenses not attributable to segments
General and administrative expenses
Other income not attributable to segments
Impairment (charges) reversals
Loss on currency translation
Closed mine rehabilitation
Income from equity investees
Finance costs, net (includes non-segment accretion)1
Gain on non-hedge derivatives
Income before income taxes
1 Includes debt extinguishment gains of $14 million (2021: $nil).
GEOGRAPHIC INFORMATION
2022
2021
$ 3,249
$ 4,668
42
(47)
(249)
(159)
396
(1,671)
(16)
136
258
(265)
7
109
(96)
(220)
(151)
187
63
(29)
(18)
446
(329)
2
$ 1,681
$ 4,632
United States
Dominican Republic
Mali
Democratic Republic of Congo
Chile
Zambia
Tanzania
Argentina
Canada
Pakistan
Saudi Arabia
Papua New Guinea
Côte d’Ivoire
Peru
Unallocated
Total
1 Geographic location is presented based on the location of the mine from which the product originated.
Non-current assets
Revenue1
As at
Dec. 31,
2022
As at
Dec. 31,
2021
2022
2021
$ 16,518
$ 16,355
$ 5,573
$ 6,134
4,874
3,599
2,659
1,957
1,930
1,914
1,247
507
749
382
327
164
73
600
4,602
4,709
3,267
1,937
1,793
1,767
1,739
517
–
382
330
191
113
939
1,303
1,236
–
–
868
1,033
365
231
–
–
–
356
48
–
1,514
1,249
–
–
962
993
382
291
–
–
–
369
91
–
$ 37,500
$ 38,641
$ 11,013
$ 11,985
183
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CAPITAL EXPENDITURES INFORMATION
Carlin
Cortez
Turquoise Ridge
Pueblo Viejo
Loulo-Gounkoto
Kibali
Veladero
North Mara
Bulyanhulu
Other Mines
Reportable segment total
Other items not allocated to segments
Total
Share of equity investee
Total
Segment Capital
Expenditures1
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$
506
419
176
629
322
99
167
156
90
500
$
422
277
144
533
313
70
144
93
80
351
$ 3,064
133
$ 3,197
(99)
$ 2,427
129
$ 2,556
(70)
$ 3,098
$ 2,486
1 Segment capital expenditures are presented for internal management reporting purposes on an accrual basis. Capital expenditures in the consolidated statements
of cash flow are presented on a cash basis. In 2022, cash expenditures were $3,049 million (2021: $2,435 million) and the increase in accrued expenditures was
$49 million (2021: $51 million increase).
6. REVENUE
For the years ended December 31
2022
2021
Gold sales
Spot market sales
Concentrate sales
Provisional pricing adjustments
Copper sales
Copper concentrate sales
Provisional pricing adjustments
Other sales1
Total
$ 9,597
$ 10,491
326
(3)
246
1
$ 9,920
$ 10,738
$
906
(38)
868
$
225
$
$ 11,013
$
915
47
962
285
$
$
$ 11,985
1 Revenues from the sale of by-products from our gold and copper mines.
For the year ended December 31, 2022, the Company has four
customers that individually account for more than 10% of the
Company’s total revenue. These customers represent approximately
23%, 14%, 11% and 11% of total revenue. However, because
gold can be sold through numerous gold market traders worldwide
(including a large number of financial institutions), the Company is not
economically dependent on a limited number of customers for the sale
of its product.
Principal Products
All of our gold mining operations produce gold in doré form, except
Phoenix, Bulyanhulu and Porgera (until it was placed on care and
maintenance in April 2020), which produce both gold doré and gold
concentrate. Gold doré is unrefined gold bullion bars usually consisting
of 90% gold that is refined to pure gold bullion prior to sale to our
customers. Concentrate is a semi-processed product containing the
valuable metal minerals from which most of the waste mineral has been
eliminated. Our Lumwana mine produces a concentrate that primarily
contains copper. Our Phoenix mine produces a concentrate that
contains both gold and copper. Incidental revenues from the sale of
by-products, primarily copper, silver and energy at our gold mines, are
classified within other sales.
Provisional Copper and Gold Sales
We have provisionally priced sales for which price finalization,
referenced to the relevant copper and gold index, is outstanding at the
balance sheet date. Our exposure at December 31, 2022 to the impact
of future movements in market commodity prices for provisionally
priced sales is set out in the following table:
Volumes subject to
final pricing
Copper (millions)
Gold (000s)
2021
2022
60
42
45
41
Impact on net
income before
taxation of 10%
movement in
market price
2021
2022
$ 23
8
$ 20
8
As at December 31
Copper pounds
Gold ounces
At December 31, 2022, our provisionally priced copper sales subject
to final settlement were recorded at an average price of $3.80/lb
(2021: $4.34/lb). At December 31, 2022, our provisionally priced gold
sales subject to final settlement were recorded at an average price of
$1,824/oz (2021: $1,819/oz). The sensitivities in the above tables have
been determined as the impact of a 10% change in commodity prices
at each reporting date, while holding all other variables, including
foreign currency exchange rates, constant.
184
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
7. COST OF SALES
For the years ended December 31
2022
2021
2022
2021
2022
2021
2022
2021
Gold
Copper
Other4
Total
Site operating cost1,2,3
Depreciation1
Royalty expense
Community relations
Total
$ 4,678
1,756
$ 4,218
1,889
$
342
37
371
26
$ 6,813
$ 6,504
$
336
223
103
4
666
$
$
266
197
103
3
569
$
–
$
–
18
–
–
18
$
16
–
–
16
$
$ 5,014
1,997
$ 4,484
2,102
445
41
474
29
$ 7,497
$ 7,089
1 Site operating costs and depreciation include charges to reduce the cost of inventory to net realizable value of $104 million (2021: $22 million). Refer to note 17.
2 Site operating costs includes the costs of extracting by-products.
3 Includes employee costs of $1,448 million (2021: $1,396 million).
4 Other includes corporate amortization.
8. EXPLORATION, EVALUATION
AND PROJECT EXPENSES
For the years ended December 31
Global exploration and evaluation1
Project costs:
2022
2021
$
123
$
122
Pascua-Lama
Pueblo Viejo
Reko Diq
Other
Corporate development
Minesite exploration and evaluation1
Total exploration, evaluation
and project expenses
1 Approximates the impact on operating cash flow.
9. OTHER EXPENSE (INCOME)
52
24
14
47
15
75
46
3
10
26
16
64
$
350
$
287
For the years ended December 31
2022
2021
Other Expense:
Litigation costs
Write-offs
Bank charges
Porgera care and maintenance costs
Supplies obsolescence
Litigation accruals and settlements
Other
Total other expense
Other Income:
Gain on acquisition/sale of
non-current assets1
Insurance proceeds related to NGM
Loss (gain) on warrant investments
at FVPL
Gain on non-hedge derivatives
Interest income on other assets
Other
Total other income
Total
$
$
$
$
$
22
15
5
53
48
19
28
190
(405)
(22)
(4)
(7)
(17)
(3)
(458)
(268)
$
$
$
$
$
17
12
7
51
21
25
17
150
(213)
–
16
(2)
(15)
(3)
(217)
(67)
1 2022 includes a gain of $300 million on the increased ownership of the Reko
Diq project (refer to note 4 for further details) and $63 million from the sale
of the royalty portfolios to Maverix Metals Inc. and Gold Royalty Corp. 2021
includes a gain of $205 million from the disposal of Lone Tree (refer to note 4
for further details).
10. IMPAIRMENT CHARGES (REVERSALS)
For the years ended December 31
Impairment charges (reversals)
of non-current assets1
Impairment of goodwill1
Total
1 Refer to note 21 for further details.
2022
2021
$
483
$
(63)
1,188
$ 1,671
–
$
(63)
11. GENERAL AND ADMINISTRATIVE EXPENSES
For the years ended December 31
Corporate administration
Share-based compensation
Total1
2022
$
$
125
34
159
2021
118
33
151
$
$
1 Includes employee costs of $93 million (2021: $101 million).
12. INCOME TAX EXPENSE
For the years ended December 31
2022
2021
Tax on profit
Current tax
Charge for the year
Adjustment in respect of prior years1
Deferred tax
Origination and reversal of temporary
differences in the current year
Adjustment in respect of prior years1
Income tax expense
Tax expense related to
continuing operations
Current
Canada
International
Deferred
Canada
International
Income tax expense
$
$
$
$
$
$
$
$
$
$
699
6
705
$ 1,031
(32)
999
$
(52)
11
(41)
664
$
289
56
$
345
$ 1,344
(8)
$
(9)
1,008
713
705
3
(44)
(41)
664
$
999
$
38
307
345
$
$ 1,344
1 Includes adjustments to equalize the difference between prior year’s tax
return and the year-end provision.
185
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION TO CANADIAN STATUTORY RATE
For the years ended December 31
At 26.5% statutory rate
Increase (decrease) due to:
Allowances and special tax deductions1
Impact of foreign tax rates2
Non-deductible expenses /
(non-taxable income)
Goodwill impairment charges
not tax deductible
Taxable gains on sales
of non-current assets
Net currency translation losses on
current and deferred tax balances
Tax impact from pass-through entities
and equity accounted investments
Current year tax results sheltered
by previously unrecognized deferred
tax assets
Recognition and de-recognition
of deferred tax assets
Adjustments in respect of prior years
Increase to income tax related
contingent liabilities
Impact of tax rate changes
Withholding taxes
Mining taxes
Tax impact of amounts recognized
within accumulated OCI
Other items
Income tax expense
2022
2021
$
446
$ 1,228
(146)
(146)
(38)
325
1
59
(138)
(84)
118
–
24
23
(196)
(330)
33
15
17
13
–
82
201
(7)
5
664
$
(18)
(31)
24
19
66
110
323
8
2
$ 1,344
1 We are able to claim certain allowances, incentives and tax deductions unique
to extractive industries that result in a lower effective tax rate.
2 We operate in multiple foreign tax jurisdictions that have tax rates different
than the Canadian statutory rate.
Currency Translation
Current and deferred tax balances are subject to remeasurement
for changes in foreign currency exchange rates each period. This
is required in countries where tax is paid in local currency and the
subsidiary has a different functional currency (e.g. US dollars). The
most significant balances relate to Argentine and Malian tax liabilities.
In 2022 and 2021, a tax expense of $59 million and $23 million,
respectively, arose from translation losses on tax balances, mainly due
to the weakening of the Argentine peso and the West African CFA
franc against the US dollar. These net translation losses are included
within income tax expense.
Withholding Taxes
In 2022, we have recorded $29 million (2021: $66 million related to
Argentina, Côte d’Ivoire, Saudi Arabia and the United States) of
dividend withholding taxes related to the undistributed earnings of our
subsidiaries in Argentina and the United States. We have also recorded
$36 million (2021: $33 million related to Argentina, Saudi Arabia and the
United States) of dividend withholding taxes related to the distributed
earnings of our subsidiaries in Tanzania and the United States.
Nevada Mining Education Tax
A new mining excise tax applied to gross proceeds became effective
on July 1, 2021 following the passing of Assembly Bill 495 at the
Nevada Legislative Session that ended on May 31, 2021. The revenue
generated by this new excise tax will be directed towards education.
The new excise tax is a tiered tax, with the maximum rate at 1.1%.
First payment in relation to the 2021 year was made in March 2022.
The bill does not take into consideration expenses or costs
incurred to generate gross proceeds; therefore, this tax is treated as a
gross receipts tax and not as a tax that is based on income subject to
IAS 12. As a result, this new tax is reported as a component of cost of
sales and not as an income tax expense.
United States Tax Reform
In August 2022, President Joe Biden signed into law the Inflation
Reduction Act (“the Act”). The Act includes a 15% corporate
alternative minimum tax (“CAMT”) that is imposed on applicable
financial statement income (“AFSI”). The CAMT is effective for tax
years beginning after December 31, 2022. Barrick is subject to CAMT
because the Company meets the applicable income thresholds for a
foreign-parented multi-national group.
On December 27, 2022, the US Treasury Department and the
US Internal Revenue Service issued initial guidance regarding the
application of the CAMT. A 60-day consultation period for business
has commenced, and we are providing comments.
Nevada Gold Mines
Nevada Gold Mines is a limited liability company treated as a flow
through partnership for US tax purposes. The partnership is not
subject to federal income tax directly, but each of its partners is liable
for tax on its share of the profits of the partnership. As such, Barrick
accounts for its current and deferred income tax associated with the
investment (61.5% share) following the principles in IAS 12.
Mining Taxes
In addition to corporate income tax, we pay mining taxes in the United
States (Nevada), the Dominican Republic, Canada (Ontario) and Peru.
Nevada Gold Mines is subject to a Net Proceeds of Minerals tax in
Nevada at a rate of 5% and the tax expense recorded in 2022 was
$88 million (2021: $136 million). Other significant mining taxes include
the Dominican Republic’s Net Profits Interest tax, which is determined
based on cash flows as defined by the Pueblo Viejo Special Lease
Agreement. A tax expense of $110 million (2021: $180 million) was
recorded for this in 2022. Both taxes are included on a consolidated
basis in the Company’s consolidated statements of income.
Impairments
In 2022, we recorded net impairment charges of $483 million (2021:
net impairment reversals of $63 million) for non-current assets and
$1,188 million (2021: $nil) for goodwill. Refer to note 21 for further
information.
A deferred tax recovery of $193 million (2021: deferred tax
expense of $nil related to the impairment reversal at Lagunas Norte)
was recorded related to the impairments at Veladero, Long Canyon
and Lumwana. There was no tax impact from the goodwill impairment
recognized at Loulo-Gounkoto.
186
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
13. EARNINGS (LOSS) PER SHARE
For the years ended December 31
($ millions, except shares in millions and per share amounts in dollars)
Net income
Net income attributable to non-controlling interests
Net income attributable to the equity holders of Barrick Gold Corporation
Weighted average shares outstanding
Basic and diluted earnings per share data attributable to the equity
holders of Barrick Gold Corporation
2022
2021
Basic
$ 1,017
(585)
$
432
1,771
Diluted
$ 1,017
(585)
$
432
1,771
Basic
$ 3,288
(1,266)
$ 2,022
1,779
Diluted
$ 3,288
(1,266)
$ 2,022
1,779
$ 0.24
$ 0.24
$ 1.14
$ 1.14
14. FINANCE COSTS, NET
For the years ended December 31
Interest expense1
Amortization of debt issue costs
Amortization of premium
Interest on lease liabilities
Loss on interest rate hedges
Interest capitalized2
Accretion
Gain on debt extinguishment
Finance income
Total
2022
2021
$ 366
$ 357
1
–
4
1
(29)
66
(14)
(94)
1
(1)
5
3
(16)
48
–
(42)
$ 301
$ 355
1 Interest in the consolidated statements of cash flow is presented on a cash basis. In 2022, cash interest paid was $305 million (2021: $303 million).
2 For the year ended December 31, 2022, the general capitalization rate was 6.20% (2021: 6.00%).
15. CASH FLOW – OTHER ITEMS
OPERATING CASH FLOWS – OTHER ITEMS
For the years ended December 31
Adjustments for non-cash income statement items:
Gain on non-hedge derivatives
Stock-based compensation expense
Loss (gain) on warrant investments at FVPL
Change in estimate of rehabilitation costs at closed mines
Inventory impairment charges (note 17)
Supplies obsolescence
Change in other assets and liabilities
Settlement of stock-based compensation
Settlement of rehabilitation obligations
Other operating activities
Cash flow arising from changes in:
Accounts receivable
Inventory
Other current assets
Accounts payable
Other current liabilities
Change in working capital
FINANCING CASH FLOWS – OTHER ITEMS
For the years ended December 31
Pueblo Viejo JV partner shareholder loan
GoT shareholder loan
Gain on debt extinguishment
Other financing activities
2022
2021
$
(7)
55
(4)
(136)
66
48
(28)
(66)
(145)
(217)
$
$
(2)
81
16
18
13
21
(120)
(97)
(133)
$ (203)
$
89
$
(46)
(219)
(261)
93
(24)
(322)
$
(163)
(178)
140
(26)
$ (273)
2022
2021
$ 177
$ 131
–
14
(16)
–
$ 191
$ 115
187
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
16. INVESTMENTS
EQUITY ACCOUNTING METHOD INVESTMENT CONTINUITY
At January 1, 2021
Equity pick-up from equity investees
Dividends received from equity investees
Shareholder loan repayment
At December 31, 2021
Equity pick-up from equity investees
Dividends received from equity investees
At December 31, 2022
Kibali
Jabal Sayid
Zaldívar
Other
Total
$ 3,279
$
369
$
967
$
55
$ 4,670
219
(231)
–
159
(146)
–
68
(142)
–
–
(1)
(2)
446
(520)
(2)
$ 3,267
$
382
$
893
$
52
$ 4,594
86
(694)
$ 2,659
$
124
(124)
382
47
(50)
890
$
1
(1)
52
$
258
(869)
$ 3,983
In 2022, Kibali Goldmines SA repaid a portion of its shareholder loans after establishing an additional ongoing mechanism for the repatriation of
cash from the Democratic Republic of Congo. For 2022, the repatriation of this cash has resulted in the payment of dividends of $694 million to
the Barrick entity that holds the 45% interest in Kibali Goldmines SA.
SUMMARIZED EQUITY INVESTEE FINANCIAL INFORMATION
For the years ended December 31
Revenue
Cost of sales (excluding depreciation)
Depreciation
Finance expense (income)
Other expense (income)
Income before income taxes
Income tax expense
Net income
Total comprehensive income
Net income (net of non-controlling interests)
SUMMARIZED BALANCE SHEET
For the years ended December 31
Cash and equivalents
Other current assets1
Total current assets
Non-current assets
Total assets
Current financial liabilities (excluding trade,
other payables & provisions)
Other current liabilities
Total current liabilities
Non-current financial liabilities (excluding trade,
other payables & provisions)
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
Net assets (net of non-controlling interests)
Kibali2
2022
2021
Jabal Sayid
2022
Zaldívar
2021
2022
2021
$ 1,328
$ 1,469
$
$
$
$
$
$
$
528
390
–
104
306
(121)
185
185
172
513
308
–
38
610
(125)
485
485
438
$
$
$
$
Kibali2
2022
92
194
286
3,905
$ 4,191
2021
$ 1,116
255
$ 1,371
3,959
$ 5,330
$
$
13
$
126
139
$
14
141
155
$
51
785
836
975
$
$ 3,216
$ 3,095
$
42
706
748
$
903
$ 4,427
$ 4,312
539
170
$
597
157
$
49
–
4
316
(67)
249
249
249
42
1
(5)
402
(84)
318
318
318
$
$
$
$
$
$
$
$
781
463
147
1
32
138
(44)
94
94
94
$
847
469
158
(4)
25
$
199
(61)
138
138
138
$
$
$
Jabal Sayid
2022
Zaldívar
2021
2022
77
$
85
$
72
$
13
$
90
$
151
228
405
633
9
95
104
4
6
10
114
519
519
$
$
$
$
$
$
$
$
178
263
419
682
559
631
$
2,013
$ 2,644
136
149
–
14
14
163
519
519
125
215
$
$
87
542
629
844
$
$ 1,800
$ 1,800
2021
171
493
664
2,031
$ 2,695
84
142
226
134
529
663
889
$ 1,806
$ 1,806
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1 Zaldívar other current assets include inventory of $443 million (2021: $384 million).
2 2021 figures have been changed to present Kibali’s summarized financial statements net of non-controlling interests of Kibali Jersey Limited, which is jointly
controlled with Anglogold Ashanti and holds a 90% interest in Kibali Goldmines SA.
The information above reflects the amounts presented in the financial information of the joint venture adjusted for differences between IFRS and
local GAAP and fair value adjustments on acquisition of equity in investees.
188
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION OF SUMMARIZED FINANCIAL INFORMATION TO CARRYING VALUE
Opening net assets (net of non-controlling interests)1
Income for the period (net of non-controlling interests)
Dividends received from equity investees
Closing net assets (net of non-controlling interests), December 31
Barrick’s share of net assets
Equity earnings adjustment
Goodwill recognition
Carrying value
Kibali
Jabal Sayid
$ 4,312
$
519
172
(1,389)
249
(249)
Zaldívar
$ 1,806
94
(100)
$ 3,095
$
519
$ 1,800
1,548
–
1,111
259
–
123
900
(10)
–
$ 2,659
$
382
$
890
1 Kibali’s opening net assets have been changed to present Kibali’s summarized financial statements net of non-controlling interests of Kibali Jersey Limited, which
is jointly controlled with Anglogold Ashanti and holds a 90% interest in Kibali Goldmines SA.
17. INVENTORIES
Raw materials
Ore in stockpiles
Ore on leach pads
Mine operating supplies
Work in process
Finished products
Non-current ore in stockpiles and on leach pads1
Gold
Copper
As at
Dec. 31,
2022
As at
Dec. 31,
2021
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$ 2,809
$ 2,587
$
641
704
138
89
663
593
108
76
$ 4,381
(2,669)
$ 1,712
$ 4,027
(2,462)
$ 1,565
$
$
150
–
59
–
10
219
(150)
$
174
–
79
–
90
$
343
(174)
69
$
169
1 Ore that we do not expect to process in the next 12 months is classified within other long-term assets.
INVENTORY IMPAIRMENT CHARGES
ORE ON LEACH PADS
For the years ended December 31
2022
2021
Veladero
Carlin
Lumwana
Cortez
Inventory impairment charges
ORE IN STOCKPILES
$
$
42
33
19
10
104
$
$
–
–
–
22
22
As at
Dec. 31,
2022
As at
Dec. 31,
2021
Gold
Veladero
Carlin
Cortez
Turquoise Ridge
Long Canyon
Phoenix
Pierina
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$
$
238
196
112
37
32
26
–
641
$
196
209
113
41
77
23
4
$
663
Gold
Carlin
Pueblo Viejo
Turquoise Ridge
Loulo-Gounkoto
North Mara
Cortez
Phoenix
Veladero
Porgera
Tongon
Bulyanhulu
Copper
Lumwana
$ 1,129
$
712
354
175
165
104
78
40
30
20
2
150
$ 2,959
Purchase Commitments
At December 31, 2022, we had purchase obligations for supplies and
consumables of approximately $1,753 million (2021: $1,718 million).
986
674
405
161
93
81
73
51
30
33
–
174
$ 2,761
189
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
18. ACCOUNTS RECEIVABLE AND OTHER CURRENT ASSETS
Accounts receivable
Amounts due from concentrate sales
Other receivables
Other current assets
Restricted cash1
Value added taxes recoverable2
Prepaid expenses
Derivative assets3
Other4
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$
188
$
366
$
554
$
945
352
243
59
91
242
381
623
–
319
206
–
87
$ 1,690
$
612
1 Relates to restricted cash balance for Antofagasta plc, which will fund their exit from the Reko Diq project, following its reconstitution as described in note 4.
2 Primarily includes VAT and fuel tax recoverables of $49 million in Mali, $66 million in Tanzania, $172 million in Zambia, $32 million in Argentina, and $12 million in
the Dominican Republic (Dec. 31, 2021: $25 million, $90 million, $141 million, $39 million, and $11 million, respectively).
3 Reclassified from Other Assets and primarily consists of contingent consideration received as part of the sale of Massawa in 2020 and Lagunas Norte in 2021.
4 2022 and 2021 balance includes $50 million asset reflecting the final settlement of Zambian tax matters.
19. PROPERTY, PLANT, AND EQUIPMENT
At January 1, 2022
Net of accumulated depreciation
Additions5
Capitalized interest
Acquisitions6
Disposals
Depreciation
Impairment charges
Transfers7
At December 31, 2022
At December 31, 2022
Cost
Accumulated depreciation and impairments
Net carrying amount – December 31, 2022
Buildings, plant
and equipment1
Mining property
costs subject
to depreciation2,4
Mining property
costs not subject
to depreciation2,3
$ 6,536
$ 14,485
30
–
–
(4)
(966)
(120)
1,273
(139)
–
–
(1)
(1,229)
(442)
1,326
$
3,933
2,977
29
744
–
–
(12)
(2,599)
Total
$ 24,954
2,868
29
744
(5)
(2,195)
(574)
–
$ 6,749
$ 14,000
$
5,072
$ 25,821
$ 18,469
(11,720)
$ 6,749
$ 33,046
$ 17,027
(19,046)
(11,955)
$ 14,000
$
5,072
$ 68,542
(42,721)
$ 25,821
190
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
At January 1, 2021
Cost
Accumulated depreciation and impairments
Net carrying amount – January 1, 2021
Additions5
Capitalized interest
Divestiture
Disposals
Depreciation
Impairment reversals (charges)
Transfers7
At December 31, 2021
At December 31, 2021
Cost
Accumulated depreciation and impairments
Net carrying amount – December 31, 2021
Buildings, plant
and equipment1
Mining property
costs subject
to depreciation2,4
Mining property
costs not subject
to depreciation2,3
$ 18,361
(10,888)
$ 7,473
$ 29,901
(16,332)
$ 13,569
23
–
(50)
(7)
(1,139)
42
194
154
–
(2)
(1)
(1,053)
(13)
1,831
$ 15,531
(11,945)
$
3,586
2,366
16
(1)
(10)
–
1
(2,025)
Total
$ 63,793
(39,165)
$ 24,628
2,543
16
(53)
(18)
(2,192)
30
–
$ 6,536
$ 14,485
$
3,933
$ 24,954
$ 17,237
(10,701)
$ 6,536
$ 31,824
(17,339)
$ 14,485
$ 15,876
(11,943)
$
3,933
$ 64,937
(39,983)
$ 24,954
1 Additions include $30 million of right-of-use assets for lease arrangements entered into during the year ended December 31, 2022 (2021: $22 million). Depreciation
includes depreciation for leased right-of-use assets of $20 million for the year ended December 31, 2022 (2021: $18 million). The net carrying amount of leased
right-of-use assets was $61 million as at December 31, 2022 (2021: $53 million).
2 Includes capitalized reserve acquisition costs, capitalized development costs and capitalized exploration and evaluation costs other than exploration license costs
included in intangible assets.
3 Assets not subject to depreciation include construction-in-progress, projects and acquired mineral resources and exploration potential at operating minesites and
development projects.
4 Assets subject to depreciation include the following items for production stage properties: acquired mineral reserves and resources, capitalized mine development
costs, capitalized stripping and capitalized exploration and evaluation costs.
5 Additions include revisions to the capitalized cost of closure and rehabilitation activities.
6 Relates to the Reko Diq reconstitution. Refer to note 4 for further information.
7 Primarily relates to non-current assets that are transferred between categories within PP&E once they are placed into service.
a) Mining Property Costs Not Subject to Depreciation
Construction-in-progress1
Acquired mineral resources
and exploration potential
Projects
Pascua-Lama
Norte Abierto
Reko Diq
Donlin Gold
Carrying
amount at
Dec. 31,
2022
Carrying
amount at
Dec. 31,
2021
$ 2,553
$ 2,114
139
727
670
744
239
165
780
662
–
212
$ 5,072
$ 3,933
1 Represents assets under construction at our operating minesites.
b) Changes in Gold and Copper Mineral Life of Mine Plan
As part of our annual business cycle, we prepare updated estimates
of proven and probable gold and copper mineral reserves and the
portion of resources considered probable of economic extraction for
each mineral property. This forms the basis for our LOM plans. We
prospectively revise calculations of amortization expense for property,
plant and equipment amortized using the UOP method, where
the denominator is our LOM ounces. The effect of changes in our
LOM on amortization expense for 2022 was an $80 million decrease
(2021: $128 million decrease).
c) Capital Commitments
In addition to entering into various operational commitments in the
normal course of business, we had commitments of approximately
$399 million at December 31, 2022 (2021: $443 million) for construction
activities at our sites and projects.
d) Other Lease Disclosure
The Company leases various buildings, plant and equipment as
part of the normal course of operations. Lease terms are negotiated
on an individual basis and contain a wide range of different terms
and conditions. Refer to note 25 for a lease maturity analysis. Included
in net income for 2022 are short-term payments and variable lease
payments not included in the measurement of lease liabilities of
$6 million (2021: $10 million) and $88 million (2021: $67 million),
respectively.
191
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
20. GOODWILL AND OTHER INTANGIBLE ASSETS
a) Intangible Assets
Opening balance January 1, 2021
Disposals
Amortization and impairment losses
Closing balance December 31, 2021
Amortization and impairment losses
Closing balance December 31, 2022
Cost
Accumulated amortization and impairment losses
Net carrying amount December 31, 2022
Water rights1
Technology2
$ 67
$
(6)
–
6
–
–
Supply
contracts3
Exploration
potential4
$
4
–
(3)
$ 92
(10)
–
$ 61
$
6
$
1
$ 82
–
$ 61
$ 61
–
$ 61
–
$
6
$ 17
(11)
$
6
(1)
$
–
$ 39
(39)
$
–
–
$ 82
$ 252
(170)
$ 82
Total
$ 169
(16)
(3)
$ 150
(1)
$ 149
$ 369
(220)
$ 149
1 Relates to water rights in South America, and will be amortized through cost of sales when we begin using these in the future.
2 The amount is amortized through cost of sales using the UOP method over LOM ounces of the Pueblo Viejo mine, with no assumed residual value.
3 Relates to a supply agreement with Michelin North America Inc. to secure a supply of tires and amortized over the effective term of the contract through cost of sales.
4 Exploration potential consists of the estimated fair value attributable to exploration licenses acquired as a result of a business combination or asset acquisition. The
carrying value of the licenses will be transferred to PP&E when the development of attributable mineral resources commences.
b) Goodwill
Carlin
Cortez
Turquoise Ridge
Phoenix
Hemlo
Loulo-Gounkoto
Total
Closing balance
December 31, 2021
Impairments
Closing balance
December 31, 2022
$ 1,294
$
899
722
119
63
–
–
–
–
–
1,672
$ 4,769
(1,188)
(1,188)
$
$
1,294
899
722
119
63
484
$
3,581
$ 12,211
(8,630)
$ 3,581
On a total basis, the gross amount and accumulated impairment losses are as follows:
Cost
Accumulated impairment losses December 31, 2022
Net carrying amount December 31, 2022
21. IMPAIRMENT AND REVERSAL OF NON-CURRENT ASSETS
Summary of impairments (reversals)
For the year ended December 31, 2022, we recorded net impairment charges of $483 million (2021: net impairment reversals of $63 million) for
non-current assets and $1,188 million (2021: $nil) for goodwill, as summarized in the following table:
For the years ended December 31
Veladero
Reko Diq
Long Canyon
Lumwana
Lagunas Norte
Golden Sunlight
Pueblo Viejo
Tanzania
Hemlo
Other
Total impairment charges (reversals) of non-current assets
Loulo-Gounkoto goodwill
Total goodwill impairment charges
Total impairment charges (reversals)
192
$
2022
490
(120)
$
85
23
–
–
–
–
–
5
483
$
1,188
$ 1,188
$ 1,671
$
$
$
2021
–
–
–
–
(86)
15
(7)
5
5
5
(63)
–
–
(63)
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2022 Indicators of Impairment and Reversals
In the fourth quarter of 2022, as per our policy, we performed our
annual goodwill impairment test as required by IAS 36 and identified
an impairment at our Loulo-Gounkoto mine. Also in the fourth quarter
of 2022, we reconstituted the Reko Diq project, which was an indicator
of impairment reversal, and we reviewed the updated LOM plans
for our other operating minesites for indicators of impairment or
reversal. We noted an indicator of impairment at our Veladero and
Long Canyon mines.
Loulo-Gounkoto
In the fourth quarter of 2022, we performed the annual goodwill
impairment test at Loulo-Gounkoto and determined that the carrying
value of $4,260 million exceeded the FVLCD. We observed a decrease
in the mine’s discounted cash flows reflecting higher operating and
capital costs largely due to inflationary pressures and a higher WACC
driven by higher interest rates as central banks have increased rates
to combat inflation. Therefore we recorded a goodwill impairment
of $1,188 million, based on a FVLCD of $3,072 million. The key
assumptions used in this assessment are listed below.
Veladero
In the fourth quarter of 2022, we updated the LOM plan for Veladero
and we observed a decrease in the mine’s discounted cash flows
reflecting higher operating and capital costs largely due to significant
inflationary pressures coupled with strict Argentine foreign exchange
controls, a decrease in expected recovery rates from the leach pad and
an increase in the WACC primarily due to higher country risk and higher
risk-free rates. We determined that this was an indicator of impairment
and concluded that the carrying value of $839 million exceeded the
FVLCD and we recorded a non-current asset impairment of $490
million, based on a FVLCD of $479 million. A net realizable value
impairment of leach pad inventory of $42 million was also recorded
(refer to note 17). The key assumptions used in this assessment are
consistent with our testing of goodwill impairment in the fourth quarter
of 2022, as listed below.
Long Canyon
In the fourth quarter of 2022, we updated the LOM plan for Long
Canyon and we observed a decrease in the mine’s discounted cash
flows reflecting an update in the permitting timeline based on our
experience at Goldrush and an increase in the WACC primarily due to
higher risk-free rates as central banks have increased rates to combat
inflation. We determined that this was an indicator of impairment and
concluded that the carrying value of $391 million exceeded the FVLCD
and we recorded a non-current asset impairment of $84 million,
based on a FVLCD of $319 million. The key assumptions used in this
assessment are consistent with our testing of goodwill impairment in
the fourth quarter of 2022, as listed below.
Reko Diq
On December 15, 2022, Barrick completed the reconstitution of the
Reko Diq project in Pakistan’s Balochistan province. The project
was suspended in 2011 due to a dispute over the legality of its
licensing process, and in 2012, an impairment of $120 million was
recorded relating to our 37.5% investment in the Reko Diq project.
The reconstitution resolves the damages originally awarded by the
International Centre for the Settlement of Investment Disputes and
disputed in the International Chamber of Commerce.
The reconstituted project is held 50% by Barrick and 50%
by Pakistani stakeholders, comprising a 10% free-carried, non-
contributing share held by the Provincial Government of Balochistan,
an additional 15% held by a special purpose company owned by
the Provincial Government of Balochistan and 25% owned by other
federal state-owned enterprises. Barrick is the operator of the project.
In the fourth quarter of 2022, we recorded an impairment reversal
of $120 million relating to the carrying value of our equity method
investment in the Reko Diq project that we fully impaired in 2012.
In addition, we recognized a gain of $300 million in other income as
Barrick’s interest in the Reko Diq project increased from 37.5% to
50% as a result of the reconstitution of the project and we did not give
up any consideration for the additional interest. The measurement of
the gain was based on the sale price agreed upon by Barrick’s original
partner in the Reko Diq joint venture to exit the reconstituted project.
Porgera
On April 9, 2021, the PNG government and BNL agreed on a
partnership for the future ownership and operation of the Porgera
mine. Porgera has been in care and maintenance since April 2020,
when the government declined to renew its SML. The financial impact
will be determined once all definitive agreements, which are currently
being negotiated, have been signed. We have determined that the
carrying value of our 47.5% share of Porgera ($327 million as at
December 31, 2022) remains recoverable and there is no impairment
loss to recognize. The ultimate resolution of this dispute may differ
from this determination and there is no certainty that the carrying value
will remain recoverable. Refer to note 35 for more information.
2021 Indicators of Impairment and Reversals
In the fourth quarter of 2021, as per our policy, we performed our
annual goodwill impairment test as required by IAS 36 and identified
no impairments. Also in the fourth quarter of 2021, we reviewed the
updated LOM plans for our other operating minesites for indicators of
impairment or reversal. We noted an indicator of impairment at Long
Canyon and an indicator of impairment reversal at Lumwana.
Long Canyon
The delayed timing of permitting activities and an updated geological
model resulting in lower production over the LOM plan represented
impairment triggers in the fourth quarter of 2021. We performed an
analysis and concluded that the carrying amount remained recoverable
under the revised LOM plan as at December 31, 2021. The key
assumptions used in this assessment were consistent with our testing
of goodwill impairment in the fourth quarter of 2021, as listed below.
Lumwana
In the fourth quarter of 2021, the Zambian government enacted
amendments to the income tax laws, effective January 1, 2022, which
allow for the deductibility of royalties when calculating income tax.
We determined that this was an indicator of an impairment reversal,
therefore we performed an analysis of the FVLCD and concluded that
no reversal was appropriate at this time.
First Quarter 2021
Lagunas Norte
As described in note 4, on February 16, 2021, we announced an
agreement to sell our 100% interest in the Lagunas Norte gold mine
in Peru to Boroo for total consideration of up to $81 million. An
impairment reversal of $86 million was recognized in the first quarter
of 2021 based on the March 31, 2021 fair value of the consideration to
be received of $63 million. Lagunas Norte was in a net liability position,
which resulted in an impairment reversal that exceeded the FVLCD.
The transaction closed on June 1, 2021.
193
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Key Assumptions
Recoverable amount has been determined based on the estimated
FVLCD, which has been determined to be greater than the VIU amounts.
The key assumptions and estimates used in determining the FVLCD
are related to future metal prices, weighted average costs of capital,
NAV multiples for gold assets, operating costs, capital expenditures,
closure costs, future production levels, continued license to operate,
evidence of value from current year disposals and the expected start
of production for our projects. In addition, assumptions are related
to observable market evaluation metrics, including identification of
comparable entities, and associated market values per ounce and per
pound of reserves and/or resources, as well as the fair value of mineral
resources outside of LOM plans.
Gold
For the gold segments where a recoverable amount was required to
be determined, FVLCD was determined by calculating the net present
value (“NPV”) of the future cash flows expected to be generated
by the mines and projects within the CGU (Level 3 of the fair value
hierarchy). The estimates of future cash flows were derived from the
LOM plans and, where the LOM plans exclude a material portion
of total reserves and resources, we assign value to resources not
considered in these models. Based on observable market or publicly
available data, including forward prices and equity sell-side analyst
forecasts, we make an assumption of future gold, copper and silver
prices to estimate future revenues. The future cash flows for each
gold mine are discounted using a real WACC, which reflects specific
market risk factors for each mine. Some gold companies trade at a
market capitalization greater than the NPV of their expected cash
flows. Market participants describe this as a “NAV multiple”, which
represents the multiple applied to the NPV to arrive at the trading
price. The NAV multiple is generally understood to take account of
a variety of additional value factors such as the exploration potential
of the mineral property, namely the ability to find and produce more
metal than what is currently included in the LOM plan or reserve and
resource estimates, and the benefit of gold price optionality. As a
result, we applied a specific NAV multiple to the NPV of each CGU
within each gold segment based on the NAV multiples observed in
the market in recent periods and that we judged to be appropriate to
the CGU.
Assumptions
The short-term and long-term gold and copper price assumptions
used in our fourth quarter 2022 and 2021 impairment testing are as
follows:
Gold price per oz (short-term)
Gold price per oz (long-term)
Copper price per lb (short-term)
Copper price per lb (long-term)
2022
$ 1,700
1,550
3.50
3.25
2021
$ 1,700
1,500
4.00
3.00
Neither the increase in the long-term gold price nor long-term
copper price assumption from 2021 were considered an indicator
of impairment reversal as the increased price would not, in isolation,
have resulted in the identification of an impairment reversal at our
mines with reversible impairments. The other key assumptions used
in our impairment testing, based on the CGUs tested in each year, are
summarized in the table below:
WACC – gold (range)
WACC – gold (avg)
WACC – copper
NAV multiple – gold (avg)
LOM years – gold (avg)
2022
4%–13%
6%
n/a
1.2
20
2021
3%–8%
4%
12%
1.2
19
Sensitivities
Should there be a significant increase or decline in commodity prices,
we would take actions to assess the implications on our LOM plans,
including the determination of reserves and resources, and the
appropriate cost structure for the CGU. The recoverable amount of the
CGU would be affected by these changes and also be impacted by
other market factors such as changes in NAV multiples and the value
per ounce/pound of comparable market entities.
We performed a sensitivity analysis on each gold CGU that was
tested as part of the goodwill impairment test, as well as those gold
CGUs which we believe are most sensitive to changes in the key
assumptions. We flexed the gold prices, WACC and NAV multiple,
which are the most significant assumptions that impact the impairment
calculations. We first assumed a +/- $100 per ounce change in our
gold price assumptions, while holding all other assumptions constant.
We then assumed a +/-1% change in our WACC, independent
from the change in gold prices, while holding all other assumptions
constant. Finally, we assumed a +/- 0.1 change in the NAV multiple,
while holding all other assumptions constant. These sensitivities help
to determine the theoretical impairment losses or impairment reversals
that would be recorded with these changes in gold prices, WACC and
NAV multiple.
If the gold price per ounce was increased by $100, the goodwill
impairment recognized for Loulo-Gounkoto would have been lower
by $617 million, the non-current asset impairment for Veladero would
have been lower by $90 million and there would not have been a
non-current asset impairment at Long Canyon. If the gold price per
ounce was decreased by $100, the goodwill impairment recognized
for Loulo-Gounkoto would have been higher by $283 million, the
non-current asset impairments would have increased by $71 million
at Veladero and $55 million at Long Canyon and a non-current asset
impairment of $278 million would have been recognized at Bulyanhulu.
If the WACC was decreased by 1%, the goodwill impairment
recognized for Loulo-Gounkoto would have been lower by $412 million,
and a non-current asset impairment of $155 million would have been
recognized at Bulyanhulu, no additional non-current asset impairment
would have been recognized for Veladero and there would not have
been a non-current asset impairment at Long Canyon. If the WACC
was increased by 1%, no additional goodwill impairment would have
been recognized for Loulo-Gounkoto, an additional non-current
asset impairment of $39 million at Long Canyon would have been
recognized and there would have been no change in the non-current
asset impairment at Veladero.
194
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
24. OTHER CURRENT LIABILITIES
Payable to Antofagasta plc1
Provision for environmental
rehabilitation (note 27b)
Deposit on Pueblo Viejo gold and
silver streaming agreement
Share-based payments (note 34a)
Pueblo Viejo JV partner
shareholder loan (note 29)
Other
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$
945
$
–
191
54
50
32
116
166
43
57
9
63
$ 1,388
$
338
1 Relates to a liability to Antofagasta plc, which will fund their exit from the Reko
Diq project, following its reconstitution as described in note 4.
25. FINANCIAL INSTRUMENTS
Financial instruments include cash; evidence of ownership in an entity;
or a contract that imposes an obligation on one party and conveys
a right to a second entity to deliver/receive cash or another financial
instrument. Information on certain types of financial instruments is
included elsewhere in these consolidated financial statements as
follows: accounts receivable (note 18); restricted share units (note 34a).
a) Cash and Equivalents
Cash and equivalents include cash, term deposits, treasury bills and
money market investments with original maturities of less than 90 days.
Cash deposits
Term deposits
Money market investments
As at
Dec. 31,
2022
$ 2,994
1,443
3
As at
Dec. 31,
2021
$ 3,691
1,582
7
$ 4,440
$ 5,280
Of total cash and cash equivalents as of December 31, 2022, $nil (2021:
$nil) was held in subsidiaries which have regulatory or contractual
restrictions or operate in countries where exchange controls and other
legal restrictions apply and are therefore not available for general use
by the Company.
If the NAV multiple was decreased by 0.1, there would have been
no additional goodwill impairment, a non-current asset impairment
of $167 million would have been recognized at Bulyanhulu, but no
additional non-current asset impairments recognized at Veladero or
Long Canyon. If the NAV multiple was increased by 0.1, the goodwill
impairment recognized for Loulo-Gounkoto would have been lower by
$416 million, the non-current asset impairments would have decreased
by $55 million at Veladero and there would have been no change in the
non-current asset impairment at Long Canyon.
The carrying value of the CGUs that are most sensitive to changes
in the key assumptions used in the FVLCD calculation are:
As at December 31, 2022
Loulo-Gounkoto
Bulyanhulu
Veladero
Long Canyon
22. OTHER ASSETS
Value added taxes receivable1
Other investments2
Notes receivable3
Norte Abierto JV Partner Receivable
Restricted cash4
Prepayments5
Derivative assets6
Other
Carrying
Value
$ 3,165
1,047
561
336
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$
218
112
$
160
149
151
223
–
115
199
414
123
150
147
253
53
170
$ 1,128
$ 1,509
1 Includes VAT and fuel tax receivables of $29 million in Argentina,
$119 million in Tanzania and $70 million in Chile (Dec. 31, 2021: $47 million,
$94 million and $58 million, respectively).
2 Includes equity investments in other mining companies.
3 Primarily represents the interest bearing promissory note due from NovaGold.
4 Primarily represents the cash balance at Pueblo Viejo that is contractually
restricted in respect of disbursements for environmental rehabilitation that are
expected to occur near the end of Pueblo Viejo’s mine life.
5 Primarily relates to prepaid royalties at Carlin and Pueblo Viejo.
6 Reclassified to Other Current Assets and primarily consists of contingent
consideration received as part of the sale of Massawa in 2020 and Lagunas
Norte in 2021.
23. ACCOUNTS PAYABLE
Accounts payable
Accruals1
Payroll accruals1
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$
741
$
556
259
539
676
233
$ 1,556
$ 1,448
1 2021 figures have been restated to reflect the change in presentation to
present payroll accruals ($233 million) separately from accruals.
195
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
b) Debt and Interest1
5.7% notes3,10
5.25% notes4
5.80% notes5,10
6.35% notes6,10
Other fixed rate notes7,10
Leases8
Other debt obligations
5.75% notes9,10
Less: current portion11
5.7% notes3,10
5.25% notes4
5.80% notes5,10
6.35% notes6,10
Other fixed rate notes7,10
Leases8
Other debt obligations
5.75% notes9,10
Less: current portion11
Closing balance
December 31,
2021
Proceeds
Repayments
Amortization
and other2
Closing balance
December 31,
2022
$
843
$
–
744
395
594
1,082
68
581
843
–
–
–
–
–
–
–
$
–
(375)
–
–
–
(20)
–
–
$ 1
$
3
1
1
1
22
(3)
1
844
372
396
595
1,083
70
578
844
$ 5,150
(15)
$ 5,135
$
$
–
–
–
$ (395)
–
$ (395)
$ 27
–
$ 27
$ 4,782
(13)
$ 4,769
Closing balance
December 31,
2020
Proceeds
Repayments
Amortization
and other2
Closing balance
December 31,
2021
$
842
$
–
$
–
$ 1
$
744
395
594
1,081
66
590
843
–
–
–
–
–
–
–
–
–
–
–
(20)
(7)
–
–
–
–
1
22
(2)
–
843
744
395
594
1,082
68
581
843
$ 5,155
(20)
$ 5,135
$
$
–
–
–
$
(27)
$ 22
$ 5,150
–
–
(15)
$
(27)
$ 22
$
5,135
1
The agreements that govern our long-term debt each contain various provisions which are not summarized herein. These provisions allow Barrick, at its option, to
redeem indebtedness prior to maturity at specified prices and also may permit redemption of debt by Barrick upon the occurrence of certain specified changes in
tax legislation.
2 Amortization of debt premium/discount and increases (decreases) in capital leases.
3 Consists of $850 million (2021: $850 million) of our wholly-owned subsidiary Barrick North America Finance LLC (“BNAF”) notes due 2041.
4 Consists of $375 million (2021: $750 million) of 5.25% notes which mature in 2042.
5 Consists of $400 million (2021: $400 million) of 5.80% notes which mature in 2034.
6 Consists of $600 million (2021: $600 million) of 6.35% notes which mature in 2036.
7
Consists of $1.1 billion (2021: $1.1 billion) in conjunction with our wholly-owned subsidiary BNAF and our wholly-owned subsidiary Barrick (PD) Australia Finance
Pty Ltd. (“BPDAF”). This consists of $250 million (2021: $250 million) of BNAF notes due 2038 and $850 million (2021: $850 million) of BPDAF notes due 2039.
Consists primarily of leases at Nevada Gold Mines, $17 million, Loulo-Gounkoto, $24 million, Veladero, $9 million, Lumwana, $4 million, Hemlo, $2 million, Pascua-
Lama, $2 million and Tongon, $2 million (2021: $18 million, $25 million, $2 million, $6 million, $4 million, $2 million and $4 million, respectively).
8
9 Consists of $850 million (2021: $850 million) in conjunction with our wholly-owned subsidiary BNAF.
10 We provide an unconditional and irrevocable guarantee on all BNAF, BPDAF, Barrick Gold Finance Company (“BGFC”), and Barrick (HMC) Mining (“BHMC”) notes
and generally provide such guarantees on all BNAF, BPDAF, BGFC, and BHMC notes issued, which rank equally with our other unsecured and unsubordinated
obligations.
11 The current portion of long-term debt consists of leases ($13 million; 2021: $15 million).
196
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5.7% Notes
In June 2011, BNAF issued an aggregate of $4.0 billion in debt
securities including $850 million of 5.70% notes that mature in 2041
issued by BNAF (collectively, the “BNAF Notes”). Barrick provides an
unconditional and irrevocable guarantee of the BNAF Notes, which
rank equally with Barrick’s other unsecured and unsubordinated
obligations.
5.25% Notes
On April 3, 2012, we issued an aggregate of $2 billion in debt securities
including $750 million of 5.25% notes that mature in 2042. During
2022, $375 million of the 5.25% notes was repaid.
Other Fixed Rate Notes
On October 16, 2009, we issued debentures through our wholly-
owned indirect subsidiary BPDAF consisting of $850 million of 30-year
notes with a coupon rate of 5.95%. We also provide an unconditional
and irrevocable guarantee of these payments, which rank equally with
our other unsecured and unsubordinated obligations.
In September 2008, we issued an aggregate of $1.25 billion of
notes through our wholly-owned indirect subsidiaries BNAF and
BGFC including $250 million of 30-year notes with a coupon rate of
7.5%. We also provide an unconditional and irrevocable guarantee
of these payments, which rank equally with our other unsecured and
unsubordinated obligations.
5.75% Notes
On May 2, 2013, we issued an aggregate of $3 billion in notes through
Barrick and our wholly-owned indirect subsidiary BNAF including
$850 million of 5.75% notes issued by BNAF that mature in 2043.
$2 billion of the net proceeds from this offering was used to repay
amounts outstanding under our revolving credit facility at that time. We
provide an unconditional and irrevocable guarantee on the $850 million
of 5.75% notes issued by BNAF, which rank equally with our other
unsecured and unsubordinated obligations.
Amendment and Refinancing of the Credit Facility
In May 2022, we amended the credit and guarantee agreement (the
“Credit Facility”) with certain Lenders, which requires such Lenders
to make available to us a credit facility of $3.0 billion or the equivalent
amount in Canadian dollars. The Credit Facility, which is unsecured,
currently has an interest rate of Secured Overnight Financing Rate
(“SOFR”) plus 1.00% on drawn amounts, and a standby rate of 0.09%
on undrawn amounts. As part of the amendment, the termination date
of the Credit Facility was extended from May 2026 to May 2027. The
Credit Facility was undrawn as at December 31, 2022.
INTEREST
For the years ended December 31
5.7% notes
5.25% notes
5.80% notes
6.35% notes
Other fixed rate notes
Leases
Other debt obligations
5.75% notes
Deposits on Pascua-Lama silver sale agreement (note 29)
Deposits on Pueblo Viejo gold and silver streaming agreement (note 29)
Other interest
Less: interest capitalized
2022
2021
Interest
cost
Effective
rate1
Interest
cost
Effective
rate1
5.74%
5.47%
5.85%
6.41%
6.39%
6.56%
6.25%
5.79%
2.82%
6.07%
$
49
37
23
38
70
4
35
49
4
29
34
$
372
(29)
$
343
5.74%
5.29%
5.85%
6.41%
6.38%
7.66%
6.25%
5.79%
2.82%
6.24%
$
49
40
23
38
70
5
35
49
4
31
21
$
365
(16)
$
349
1 The effective rate includes the stated interest rate under the debt agreement, amortization of debt issue costs and debt discount/premium and the impact of interest
rate contracts designated in a hedging relationship with debt.
197
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULED DEBT REPAYMENTS1
7.73% notes2
7.70% notes2
7.37% notes2
8.05% notes2
6.38% notes2
5.80% notes
5.80% notes
6.45% notes2
6.35% notes
7.50% notes3
5.95% notes3
5.70% notes
5.25% notes
5.75% notes
Issuer
Maturity
Year
2023
2024
2025
2026
2027
2028 and
thereafter
Total
BGC
BGC
BGC
BGC
BGC
BGC
BGFC
BGC
BHMC
BNAF
BPDAF
BNAF
BGC
BNAF
2025
$
–
$
–
$
7
$
–
$
–
$
–
$
2025
2026
2026
2033
2034
2034
2035
2036
2038
2039
2041
2042
2043
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5
–
–
–
–
–
–
–
–
–
–
–
–
–
32
15
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
200
200
200
300
600
250
850
850
375
850
7
5
32
15
200
200
200
300
600
250
850
850
375
850
Minimum annual payments
under leases
$
$
–
13
$
$
–
9
$
$
12
9
$
$
47
9
$
$
–
$ 4,675
$ 4,734
8
$
22
$
70
1 This table illustrates the contractual undiscounted cash flows, and may not agree with the amounts disclosed in the consolidated balance sheet.
2 Included in Other debt obligations in the Long-Term Debt table.
3 Included in Other fixed rate notes in the Long-Term Debt table.
c) Derivative Instruments (“Derivatives”)
In the normal course of business, our assets, liabilities and forecasted
transactions, as reported in US dollars, are impacted by various
market risks including, but not limited to:
Item
• Revenue
• Cost of sales
Impacted by
• Prices of gold,
silver and copper
• Consumption of diesel fuel,
propane, natural gas, and
electricity
• Prices of diesel fuel,
propane, natural gas,
and electricity
• Non-US dollar
expenditures
• General and administration,
exploration and evaluation
costs
• Capital expenditures
• Non-US dollar capital
expenditures
• Currency exchange rates –
US dollar versus A$, ARS,
C$, CLP, DOP, EUR, PGK,
TZS, XOF, ZAR and ZMW
• Currency exchange rates –
US dollar versus A$, ARS,
C$, CLP, DOP, GBP, PGK,
TZS, XOF, ZAR, and ZMW
• Currency exchange rates –
US dollar versus A$, ARS,
C$, CLP, DOP, EUR, GBP,
PGK, XOF, ZAR, and ZMW
• Consumption of steel
• Price of steel
• Interest earned on cash
• US dollar interest rates
and equivalents
• Interest paid on
fixed-rate borrowings
• US dollar interest rates
The time frame and manner in which we manage those risks varies
for each item based upon our assessment of the risk and available
alternatives for mitigating risk. For these particular risks, we believe
that derivatives are an appropriate way of managing the risk.
We use derivatives as part of our risk management program to
mitigate variability associated with changing market values related
to the hedged item. Many of the derivatives we use meet the hedge
effectiveness criteria and are designated in a hedge accounting
relationship.
Certain derivatives are designated as either hedges of the fair
value of recognized assets or liabilities or of firm commitments (“fair
value hedges”) or hedges of highly probable forecasted transactions
(“cash flow hedges”), collectively known as “accounting hedges”.
Hedges that are expected to be highly effective in achieving offsetting
changes in fair value or cash flows are assessed on an ongoing basis to
determine that they actually have been highly effective throughout the
financial reporting periods for which they were designated. Some of
the derivatives we use are effective in achieving our risk management
objectives, but they do not meet the strict hedge accounting criteria.
These derivatives are considered to be “non-hedge derivatives”.
During 2022 and 2021, we did not enter into any derivative
contracts for US dollar interest rates, currencies, or commodity inputs.
We had no contracts outstanding at December 31, 2022.
26. FAIR VALUE MEASUREMENTS
Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants
at the measurement date. The fair value hierarchy establishes three
levels to classify the inputs to valuation techniques used to measure fair
value. Level 1 inputs are quoted prices (unadjusted) in active markets
for identical assets or liabilities. Level 2 inputs are quoted prices in
markets that are not active, quoted prices for similar assets or liabilities
in active markets, inputs other than quoted prices that are observable
for the asset or liability (for example, interest rate and yield curves
observable at commonly quoted intervals, forward pricing curves used
to value currency and commodity contracts and volatility measurements
used to value option contracts), or inputs that are derived principally
from or corroborated by observable market data or other means.
Level 3 inputs are unobservable (supported by little or no market
activity). The fair value hierarchy gives the highest priority to Level 1
inputs and the lowest priority to Level 3 inputs.
198
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
a) Assets and Liabilities Measured at Fair Value on a Recurring Basis
FAIR VALUE MEASUREMENTS
At December 31, 2022
Other investments1
Derivatives
Receivables from provisional copper and gold sales
FAIR VALUE MEASUREMENTS
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Other Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
$
112
$
–
$
–
Aggregate
Fair Value
$
112
–
–
59
188
–
–
$
112
$
247
$
–
$
59
188
359
At December 31, 2021
Other investments1
Derivatives
Receivables from provisional copper and gold sales
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
$
414
–
–
Significant
Other Observable
Inputs
(Level 2)
$
–
53
242
Significant
Unobservable
Inputs
(Level 3)
$
–
–
–
1 Includes equity investments in other mining companies.
b) Fair Values of Financial Assets and Liabilities
$
414
$
295
$
–
$
Aggregate
Fair Value
$
414
53
242
709
Financial assets
Other assets1,5
Other investments2
Derivative assets3
Financial liabilities
Debt4
Other liabilities5
At December 31, 2022 At December 31, 2021
Carrying
amount
Estimated
fair value
Carrying
amount
Estimated
fair value
$ 1,358
$ 1,358
$
382
$
112
59
112
59
414
53
382
414
53
$ 1,529
$ 1,529
$
849
$
849
$ 4,782
1,562
$ 6,344
$ 4,922
1,562
$ 6,484
$ 5,150
$ 6,928
473
473
$ 5,623
$ 7,401
1 Includes restricted cash and amounts due from our partners.
2 Includes equity investments in other mining companies. Recorded at fair value. Quoted market prices are used to determine fair value.
3 Primarily consists of contingent consideration received as part of the sale of Massawa and Lagunas Norte.
4 Debt is generally recorded at amortized cost except for obligations that are designated in a fair-value hedge relationship, in which case the carrying amount is
adjusted for changes in fair value of the hedging instrument in periods when a hedge relationship exists. The fair value of debt is primarily determined using quoted
market prices. Balance includes both current and long-term portions of debt.
5 Other assets include a restricted cash balance and other liabilities include a liability to Antofagasta plc. The restricted cash will fund Antofagasta plc’s exit from the
Reko Diq project, following its reconstitution as described in note 4.
The fair values of the Company’s remaining financial assets and liabilities, which include cash and equivalents, accounts receivable and trade
and other payables approximate their carrying values due to their short-term nature. We do not offset financial assets with financial liabilities.
c) Assets Measured at Fair Value on a Non-Recurring Basis Valuation Techniques
At December 31, 2022
Property, plant and equipment1
Goodwill2
Quoted prices
in active
markets for
identical
assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
–
–
–
–
648
484
Aggregate
fair value
648
484
1 Property, plant and equipment were written down by $574 million, which was included in earnings in this period.
2 Goodwill was written down at Loulo-Gounkoto by $1,188 million, which was included in earnings in this period.
199
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Receivables from Provisional Copper and Gold Sales
The fair value of receivables arising from copper and gold sales
contracts that contain provisional pricing mechanisms is determined
using the appropriate quoted forward price from the exchange that
is the principal active market for the particular metal. As such, these
receivables, which meet the definition of an embedded derivative, are
classified within Level 2 of the fair value hierarchy.
Other Long-Term Assets
The fair value of property, plant and equipment, goodwill, intangibles
and other assets is determined primarily using an income approach
based on unobservable cash flows and a market multiples approach
where applicable, and as a result is classified within Level 3 of the
fair value hierarchy. Refer to note 21 for disclosure of inputs used to
develop these measures.
27. PROVISIONS
a) Provisions
Environmental rehabilitation (“PER”)
$ 2,013
$ 2,559
As at
Dec. 31,
2022
As at
Dec. 31,
2021
Post-retirement benefits
Share-based payments
Other employee benefits
Other
b) Environmental Rehabilitation
At January 1
PERs divested during the year
Closed Sites
Impact of revisions to expected cash
flows recorded in earnings
Settlements
Cash payments
Settlement gains
Accretion
Operating Sites
PER revisions in the year
Settlements
Cash payments
Settlement gains
Accretion
At December 31
Current portion (note 24)
46
14
36
102
48
17
42
102
$ 2,211
$ 2,768
2022
2021
$ 2,725
$ 3,081
–
(265)
(117)
(102)
(5)
23
(317)
(43)
(3)
43
44
(89)
(6)
18
(42)
(44)
(2)
30
$ 2,204
$ 2,725
(191)
(166)
$ 2,013
$ 2,559
The eventual settlement of substantially all PERs estimated is expected
to take place between 2023 and 2062.
The total PER has increased in the fourth quarter of 2022 by
$126 million primarily due to changes in cost estimates at our Cortez,
Carlin and Pascua-Lama properties, combined with a decrease in
the discount rate. For the year ended December 31, 2022, our PER
balance decreased by $521 million primarily due to an increase in the
discount rate and spending incurred during the year, partially offset by
the changes in cost estimates described above. A 1% increase in the
discount rate would result in a decrease in the PER by $219 million and
a 1% decrease in the discount rate would result in an increase in the
PER by $266 million, while holding the other assumptions constant.
instruments are comprised of financial
28. FINANCIAL RISK MANAGEMENT
Our financial
liabilities
and financial assets. Our principal financial liabilities, other than
derivatives, comprise accounts payable and debt. The main purpose
of these financial instruments is to manage short-term cash flow and
raise funds for our capital expenditure program. Our principal financial
assets, other than derivative instruments, are cash and equivalents,
restricted cash, accounts receivable, notes receivable and JV partner
receivable, which arise directly from our operations. In the normal
course of business, we use derivative instruments to mitigate exposure
to various financial risks.
We manage our exposure to key financial risks in accordance with
our financial risk management policy. The objective of the policy is
to support the delivery of our financial targets while protecting future
financial security. The main risks that could adversely affect our
financial assets, liabilities or future cash flows are as follows:
a.
Market risk, including commodity price risk, foreign currency and
interest rate risk;
b. Credit risk;
c. Liquidity risk; and
d. Capital risk management.
Management designs strategies for managing each of these risks,
which are summarized below. Our senior management oversees
the management of financial risks. Our senior management ensures
that our financial risk-taking activities are governed by policies and
procedures and that financial risks are identified, measured and
managed in accordance with our policies and our risk appetite. All
derivative activities for risk management purposes are carried out by
the appropriate personnel.
a) Market Risk
Market risk is the risk that changes in market factors, such as
commodity prices, foreign exchange rates or interest rates, will affect
the value of our financial instruments. We manage market risk by either
accepting it or mitigating it through the use of derivatives and other
economic hedging strategies.
Commodity Price Risk
Gold and Copper
We sell our gold and copper production in the world market. The
market prices of gold and copper are the primary drivers of our
profitability and ability to generate both operating and free cash flow.
Our corporate treasury group implements hedging strategies on an
opportunistic basis to protect us from downside price risk on our gold
and copper production. We did not enter into any positions during
2022 and 2021 and we do not have any positions outstanding as at
December 31, 2022. Our gold and copper production is subject to
market prices.
200
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Fuel
We consume diesel fuel and natural gas to run our operations. Diesel
fuel is refined from crude oil and is therefore subject to the same
price volatility affecting crude oil prices. Therefore, volatility in crude
oil and natural gas prices have a direct and indirect impact on our
production costs.
Foreign Currency Risk
The functional and reporting currency for all of our operating segments
is the US dollar and we report our results using the US dollar. The
majority of our operating and capital expenditures are denominated and
settled in US dollars. We have exposure to the Argentine peso through
operating costs at our Veladero mine, and peso denominated VAT
receivable balances. In addition, we have exposure to the Canadian
and Australian dollars, Chilean peso, Papua New Guinea kina,
Zambian kwacha, Tanzanian shilling, Dominican peso, West African
CFA franc, Euro, South African rand, and British pound through mine
operating and capital costs. Consequently, fluctuations in the US dollar
exchange rate against these currencies increase the volatility of cost of
sales, general and administrative costs and overall net earnings, when
translated into US dollars.
Interest Rate Risk
Interest rate risk refers to the risk that the value of a financial instrument
or cash flows associated with the instruments will fluctuate due to
changes in market interest rates. Currently, our interest rate exposure
mainly relates to interest receipts on our cash balances ($4.4 billion at
the end of the year); the mark-to-market value of derivative instruments;
and to the interest payments on our variable-rate debt ($0.1 billion at
December 31, 2022).
The effect on net earnings and equity of a 1% change in
the
liabilities as at
interest rate of our financial assets and
December 31, 2022 is approximately $39 million (2021: $37 million).
b) Credit Risk
Credit risk is the risk that a third party might fail to fulfill its performance
obligations under the terms of a financial instrument. Credit risk
arises from cash and equivalents, restricted cash, notes receivable,
JV partner receivable, accounts receivable, as well as derivative
assets. To mitigate our inherent exposure to credit risk on all financial
assets listed above (other than derivative assets) we maintain
policies to limit the concentration of credit risk, review counterparty
creditworthiness on a monthly basis, and ensure liquidity of available
funds. We also invest our excess cash and equivalents in highly rated
financial institutions, primarily within the United States and Canada.
Furthermore, we sell our gold and copper production into the world
market and to financial institutions and private customers with strong
credit ratings. Historically, customer defaults have not had a significant
impact on our operating results or financial position.
The Company’s maximum exposure to credit risk at the reporting
date is the carrying value of each of the financial assets disclosed
as follows:
Cash and equivalents
Accounts receivable
Derivative assets
Notes receivable
Norte Abierto JV partner receivable
Restricted cash
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$ 4,440
$ 5,280
554
59
160
172
623
53
123
173
1,096
$ 6,481
147
$ 6,399
c) Liquidity Risk
Liquidity risk is the risk of loss from not having access to sufficient
funds to meet both expected and unexpected cash demands. We
manage our exposure to liquidity risk by maintaining cash reserves,
access to undrawn credit facilities and access to public debt markets,
by staggering the maturities of outstanding debt instruments to
mitigate refinancing risk and by monitoring of forecasted and actual
cash flows. Details of the undrawn credit facility are included in note 25.
Our capital structure comprises a mix of debt, non-controlling
interest and shareholders’ equity. As at December 31, 2022, our
total debt was $4.8 billion (debt net of cash and equivalents was
$342 million) compared to total debt as at December 31, 2021 of
$5.2 billion (debt net of cash and equivalents was $(130) million).
Our operating cash flow is dependent on the ability of our operations
to deliver projected future cash flows. The market prices of gold, and
to a lesser extent copper, are the primary drivers of our operating
cash flow. Other options to enhance liquidity include further portfolio
optimization and the creation of new joint ventures and partnerships;
issuance of equity securities in the public markets or to private
investors, which could be undertaken for liquidity enhancement and/or
in connection with establishing a strategic partnership; issuance of
long-term debt securities in the public markets or to private investors
(Moody’s and S&P currently rate Barrick’s outstanding long-term
debt as investment grade, with ratings of A3 and BBB+, respectively);
and drawing on the $3.0 billion available under our undrawn credit
facility (subject to compliance with covenants and the making of
certain representations and warranties, this facility is available for
drawdown as a source of financing). The key financial covenant in the
Credit Facility (undrawn as at December 31, 2022) requires Barrick
to maintain a net debt to total capitalization ratio, as defined in the
agreement, of 0.60:1 or lower (Barrick’s net debt to total capitalization
ratio was 0.01:1 as at December 31, 2022).
201
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table outlines the expected maturity of our significant financial assets and liabilities into relevant maturity groupings based on
the remaining period from the balance sheet date to the contractual maturity date. As the amounts presented in the table are the contractual
undiscounted cash flows, these balances may not agree with the amounts disclosed in the balance sheet.
Less than 1 year
1 to 3 years
3 to 5 years
Over 5 years
$ 4,440
$
–
$
–
$
As at December 31, 2022
(in $ millions)
Cash and equivalents
Accounts receivable
Notes receivable
Norte Abierto JV partner receivable
Restricted cash
Derivative assets
Trade and other payables
Debt
Other liabilities
As at December 31, 2021
(in $ millions)
Cash and equivalents
Accounts receivable
Notes receivable
Norte Abierto JV partner receivable
Restricted cash
Derivative assets
Trade and other payables
Debt
Other liabilities
554
–
23
945
59
1,556
13
1,017
–
11
25
15
–
–
30
210
–
3
–
–
–
–
64
76
623
–
23
–
–
1,448
15
30
–
1
46
12
53
–
17
196
–
–
–
–
–
–
67
92
–
–
146
124
136
–
–
4,697
259
–
–
122
104
135
–
–
5,077
155
Total
$ 4,440
554
160
172
1,096
59
1,556
4,804
1,562
Total
$ 5,280
623
123
173
147
53
1,448
5,176
473
Less than 1 year
1 to 3 years
3 to 5 years
Over 5 years
$ 5,280
$
–
$
–
$
Government of Tanzania Shareholder Loan
On January 24, 2020, Barrick formalized the establishment of a
joint venture between Barrick and the Government of Tanzania
(“GoT”). Effective January 1, 2020, the GoT received a 16% interest
in the shareholder loans owed by Bulyanhulu and Buzwagi, of which
$167 million was payable to the GoT. During 2021, $16 million was
repaid. During 2022, $32 million was offset against value added
taxes recoverable.
Pueblo Viejo Shareholder Loan
In November 2020, Pueblo Viejo entered into a $1.3 billion loan
facility agreement with its shareholders (the “PV Shareholder Loan”)
to provide long-term financing to expand the mine. The shareholders
will lend funds pro rata in accordance with their shareholding in
Pueblo Viejo. The PV Shareholder Loan is broken up into two facilities:
$0.8 billion of funds that could be drawn on a pro rata basis until
June 30, 2022 (“Facility I”) and $0.5 billion of funds that can be
drawn on a pro rata basis until June 30, 2025 (“Facility II”). During
2022, Facility I was extended to December 31, 2022. Starting in 2023,
amortized repayments for Facility I are due to begin twice yearly on the
scheduled repayment dates, with a final maturity date of February 28,
2032. Amortized repayments for Facility II are due to begin twice
yearly on the scheduled repayment dates after June 30, 2025, with
a final maturity date of February 28, 2035. The interest rate on drawn
amounts is SOFR plus 400 basis points. During 2022, 2021 and 2020,
$369 million, $327 million and $104 million, respectively, were drawn
on Facility I, fully drawing it down, including $147 million, $131 million
and $42 million, respectively, from Barrick’s Pueblo Viejo JV partner.
During 2022, $75 million was drawn on Facility II, including $30 million
from Barrick’s Pueblo Viejo JV partner.
d) Capital Risk Management
Our objective when managing capital is to provide value for shareholders
by maintaining an optimal short-term and long-term capital structure in
order to reduce the overall cost of capital while preserving our ability
to continue as a going concern. Our capital management objectives
are to safeguard our ability to support our operating requirements on
an ongoing basis, continue the development and exploration of our
mineral properties and support any expansion plans. Our objectives
are also to ensure that we maintain a strong balance sheet and
optimize the use of debt and equity to support our business and
provide financial flexibility in order to maximize shareholder value.
We define capital as total debt less cash and equivalents and it is
managed by management subject to approved policies and limits by
the Board of Directors. We have no significant financial covenants or
capital requirements with our lenders or other parties other than what
is discussed under liquidity risk in note 28c.
29. OTHER NON-CURRENT LIABILITIES
Deposit on Pascua-Lama silver
sale agreement
Deposit on Pueblo Viejo gold
and silver streaming agreement1
Long-term income tax payable
GoT shareholder loan
Pueblo Viejo JV partner
shareholder loan
Provision for offsite remediation
Other
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$
158
$
154
415
200
118
318
32
88
438
267
150
164
52
76
1 Revenues of $40 million were recognized in 2022 (2021: $44 million) through
the draw-down of our streaming liabilities relating to a contract in place at
Pueblo Viejo.
$ 1,329
$ 1,301
202
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
30. DEFERRED INCOME TAXES
Recognition and Measurement
We record deferred income tax assets and liabilities where temporary
differences exist between the carrying amounts of assets and liabilities
in our balance sheet and their tax bases. The measurement and
recognition of deferred income tax assets and liabilities takes into
account: substantively enacted rates that will apply when temporary
differences reverse; interpretations of relevant tax legislation; estimates
of the tax bases of assets and liabilities; and the deductibility of
expenditures for income tax purposes. In addition, the measurement
and recognition of deferred tax assets takes into account tax planning
strategies. We recognize the effect of changes in our assessment of
these estimates and factors when they occur. Changes in deferred
income tax assets and liabilities are allocated between net income,
other comprehensive income, equity and goodwill based on the
source of the change.
Current income taxes of $29 million have been provided in the
year on the undistributed earnings of certain foreign subsidiaries. Our
total income tax provision for these items as at December 31, 2022
is $41 million. Deferred income taxes have not been provided on the
undistributed earnings of all other foreign subsidiaries for which we are
able to control the timing of the remittance, and it is probable that there
will be no remittance in the foreseeable future. These undistributed
earnings amounted to $14,569 million as at December 31, 2022.
SOURCES OF DEFERRED INCOME TAX
ASSETS AND LIABILITIES
Deferred tax assets
Tax loss carry forwards
Tax credits
Environmental rehabilitation
Post-retirement benefit obligations
and other employee benefits
Other working capital
Other
Deferred tax liabilities
Property, plant and equipment
Inventory
Accrued interest payable
Classification:
Non-current assets
Non-current liabilities
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$
307
–
205
31
85
10
638
$
$
330
10
262
30
68
5
$
705
(3,476)
(389)
(1)
(3,556)
(416)
3
$ (3,228)
$ (3,264)
$
19
$
29
(3,247)
$ (3,228)
(3,293)
$ (3,264)
Pascua-Lama Silver Sale Agreement
Our silver sale agreement with Wheaton requires us to deliver
25 percent of the life of mine silver production from the Pascua-Lama
project once it is constructed and required delivery of 100 percent
of silver production from the Lagunas Norte, Pierina and Veladero
mines until March 31, 2018. In return, we were entitled to an upfront
cash payment of $625 million payable over three years from the
date of the agreement, as well as ongoing payments in cash of the
lesser of $3.90 (subject to an annual inflation adjustment of 1 percent
starting three years after project completion at Pascua-Lama) and
the prevailing market price for each ounce of silver delivered under
the agreement. An imputed interest expense was recorded on the
liability at the rate implicit in the agreement. The liability plus imputed
interest was amortized based on the difference between the effective
contract price for silver and the amount of the ongoing cash payment
per ounce of silver delivered under the agreement. The completion
date guarantee under the silver sale agreement for Pascua-Lama
was originally December 31, 2015 but was subsequently extended
to June 30, 2020. Per the terms of the amended silver purchase
agreement, if the requirements of the completion guarantee were not
satisfied by June 30, 2020, then Wheaton had the right to terminate the
agreement within 90 days of that date, in which case, they would have
been entitled to the return of the upfront consideration paid less credit
for silver delivered up to the date of that event.
Given that, as of September 28, 2020, Wheaton had not exercised
its termination right, a residual liability of $253 million remains due
on September 1, 2039 (assuming no future deliveries are made).
This residual cash liability was remeasured to $148 million as at
September 30, 2020, which was the present value of the liability due in
2039 discounted at a rate estimated for comparable liabilities, including
Barrick’s outstanding debt. The liability had a balance of $158 million
as at December 31, 2022 and is measured at amortized cost.
Pueblo Viejo Gold and Silver Streaming Agreement
On September 29, 2015, we closed a gold and silver streaming
transaction with Royal Gold, Inc. (“Royal Gold”) for production linked
to Barrick’s 60 percent interest in the Pueblo Viejo mine. Royal Gold
made an upfront cash payment of $610 million and will continue
to make cash payments for gold and silver delivered under the
agreement. The $610 million upfront payment is not repayable and
Barrick is obligated to deliver gold and silver based on Pueblo Viejo’s
production. We have accounted for the upfront payment as deferred
revenue and will recognize it in earnings, along with the ongoing cash
payments, as the gold and silver is delivered to Royal Gold. We will
also be recording accretion expense on the deferred revenue balance
as the time value of the upfront deposit represents a significant
component of the transaction.
Under the terms of the agreement, Barrick will sell gold and silver
to Royal Gold equivalent to:
• 7.5 percent of Barrick’s interest in the gold produced at Pueblo
Viejo until 990,000 ounces of gold have been delivered, and
3.75 percent thereafter. As at December 31, 2022, approximately
317,000 ounces of gold have been delivered.
• 75 percent of Barrick’s interest in the silver produced at Pueblo
Viejo until 50 million ounces have been delivered, and 37.5 percent
thereafter. Silver will be delivered based on a fixed recovery rate
of 70 percent. Silver above this recovery rate is not subject to
the stream. As at December 31, 2022, approximately 11 million
ounces of silver have been delivered.
Barrick will receive ongoing cash payments from Royal Gold
equivalent to 30 percent of the prevailing spot prices for the first
550,000 ounces of gold and 23.1 million ounces of silver delivered.
Thereafter payments will double to 60 percent of prevailing spot prices
for each subsequent ounce of gold and silver delivered. Ongoing cash
payments to Barrick are tied to prevailing spot prices rather than fixed
in advance, maintaining exposure to higher gold and silver prices in
the future.
203
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
EXPIRY DATES OF TAX LOSSES
Non-capital tax losses1
Australia
Barbados
Canada
Chile
Papua New Guinea
Saudi Arabia
Tanzania
United Kingdom
Others
2023
2024
2025
2026
2027+
No
expiry
date
$
–
$
–
$
–
$
–
$
–
$
54
$
397
212
218
–
–
–
–
–
–
–
–
–
–
–
–
1
–
–
–
–
–
2
1
–
–
–
–
–
2
399
$
2
214
1
220
$
$
$
38
41
131
2,349
–
127
–
–
–
2
–
–
979
10
330
1,199
117
9
$ 2,609
$ 2,698
Total
54
960
2,351
979
137
330
1,199
117
54
$ 6,181
1 Represents the gross amount of tax loss carry forwards translated at closing exchange rates at December 31, 2022.
The non-capital tax losses include $5,165 million of losses which are
not recognized in deferred tax assets. Of these, $399 million expire
in 2023, $213 million expire in 2024, $221 million expire in 2025,
$41 million expire in 2026, $2,482 million expire in 2027 or later, and
$1,809 million have no expiry date.
Deferred tax assets not recognized relate to: non-capital loss carry
forwards of $1,168 million (2021: $1,048 million), capital loss carry
forwards with no expiry date of $262 million (2021: $321 million),
and other deductible temporary differences with no expiry date of
$1,416 million (2021: $1,414 million).
Recognition of Deferred Tax Assets
We recognize deferred tax assets taking into account the effects
of local tax law. Deferred tax assets are fully recognized when we
conclude that sufficient positive evidence exists to demonstrate that it
is probable that a deferred tax asset will be realized. The main factors
considered are:
• Historic and expected future levels of taxable income;
• Tax plans that affect whether tax assets can be realized; and
• The nature, amount and expected timing of reversal of taxable
temporary differences.
Levels of future income are mainly affected by: market gold, copper
and silver prices; forecasted future costs and expenses to produce
gold and copper; quantities of proven and probable gold and copper
reserves; market interest rates; and foreign currency exchange rates. If
these factors or other circumstances change, we record an adjustment
to the recognition of deferred tax assets to reflect our latest assessment
of the amount of deferred tax assets that is probable will be realized.
DEFERRED TAX ASSETS NOT RECOGNIZED
SOURCE OF CHANGES IN DEFERRED TAX BALANCES
For the years ended December 31
Temporary differences
Property, plant and equipment
Environmental rehabilitation
Tax loss carry forwards
AMT and other tax credits
Inventory
Other
Intraperiod allocation to:
Income before income taxes
Income tax payable
Other comprehensive (income) loss
Other
2022
2021
$
$
$
$
80
(56)
(23)
(10)
27
18
36
41
(2)
(5)
2
36
$
(181)
(97)
(127)
(3)
48
32
$
(328)
$
(345)
(2)
19
–
$
(328)
As at
Dec. 31,
2022
As at
Dec. 31,
2021
$
154
306
53
954
$
118
302
27
966
1,084
1,059
6
9
65
65
109
22
15
4
6
11
79
71
105
36
–
3
$ 2,846
$ 2,783
INCOME TAX RELATED CONTINGENT LIABILITIES
At January 1
Additions based on uncertain tax
positions related to prior years
Additions based on uncertain tax
positions related to the current year
Reductions for tax positions of prior years
Reclassifications1
At December 312
2022
2021
$
257
$
266
1
7
(45)
(160)
19
–
(28)
–
$
60
$
257
1 Following the full implementation of the Framework Agreement in Tanzania,
the agreed payment obligations are shown in current and long-term income
tax payables.
2 If reversed, the total amount of $60 million would be recognized as a benefit
to income taxes on the income statement, and therefore would impact the
reported effective tax rate.
Argentina
Australia
Barbados
Canada
Chile
Côte d’Ivoire
Mali
Peru
Saudi Arabia
Tanzania
United Kingdom
United States
Others
204
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
TAX YEARS STILL UNDER EXAMINATION
Argentina
Australia
Canada
Chile
Côte d’Ivoire
Democratic Republic of Congo
Dominican Republic
Mali
Papua New Guinea
Peru
Saudi Arabia
Tanzania
United States
Zambia
2010–2011, 2015–2022
2017–2022
2015–2022
2015–2022
2020–2022
2021–2022
2015–2022
2017–2022
2006–2022
2016–2022
2019–2022
2018–2022
2022
2018–2022
31. CAPITAL STOCK
Authorized Capital Stock
Our authorized capital stock is composed of an unlimited number
of common shares (issued 1,755,349,661 common shares as at
December 31, 2022). Our common shares have no par value.
Dividends
In 2022, we declared and paid dividends in US dollars totaling $1,143 million
(2021: $634 million).
The Company’s dividend reinvestment plan resulted in $5 million
(2021: $5 million) reinvested into the Company.
32. NON-CONTROLLING INTERESTS
a) Non-Controlling Interests (“NCI”) Continuity
Return of Capital
At the Annual and Special Meeting on May 4, 2021, shareholders
approved a $750 million return of capital distribution. This distribution
was derived from a portion of the proceeds from the divestiture of
Kalgoorlie Consolidated Gold Mines in November 2019 and from other
dispositions made by Barrick and its affiliates in line with our strategy
of focusing on our core assets. The total return of capital distribution
was paid in three equal tranches of $250 million on June 15, 2021,
September 15, 2021 and December 15, 2021.
Share Buyback Program
At the February 15, 2022 meeting, the Board of Directors authorized a
share buyback program for the repurchase of up to $1.0 billion of the
Company’s outstanding common shares over the following 12 months.
In 2022, Barrick purchased 24.25 million common shares for a total of
$424 million before the program was terminated. At the February 14,
2023 meeting, the Board of Directors authorized a new share buyback
program for the repurchase of up to $1.0 billion of the Company’s
outstanding common shares over the next 12 months.
The actual number of common shares that may be purchased,
and the timing of any such purchases, will be determined by Barrick
based on a number of factors, including the Company’s financial
performance, the availability of cash flows, and the consideration of
other uses of cash, including capital investment opportunities, returns
to shareholders, and debt reduction.
The repurchase program does not obligate the Company to
acquire any particular number of common shares, and the repurchase
program may be suspended or discontinued at any time at the
Company’s discretion.
NCI in subsidiary at
December 31, 2022
At January 1, 2021
Share of income
Cash contributed
Increase in non-controlling
interest2
Disbursements
At December 31, 2021
Acquisitions2
Share of income (loss)
Disbursements
Nevada
Gold Mines
Pueblo
Viejo
Tanzania
Mines1
Loulo-
Gounkoto
Tongon
Reko Diq
Other
Total
38.5%
40%
16%
20%
10.3%
50%
Various
$ 5,978 $ 1,193 $
263 $
933 $
39 $
–
$
(37) $ 8,369
980
–
(49)
(848)
174
–
–
(178)
35
–
–
–
71
–
–
(51)
6
–
–
(16)
–
–
–
–
–
12
(37)
(18)
1,266
12
(86)
(1,111)
$ 6,061 $ 1,189 $
298 $
953 $
29 $
–
$
(80) $ 8,450
–
633
(626)
–
96
(157)
–
35
(12)
–
(179)
(35)
–
–
(16)
329
–
–
–
–
–
329
585
(846)
At December 31, 2022
$ 6,068 $ 1,128 $
321 $
739 $
13 $
329
$
(80) $ 8,518
1 Tanzania mines consist of the two operating mines (North Mara and Bulyanhulu) and Buzwagi which transitioned into closure early in the third quarter of 2021.
2 Refer to note 4 for further details.
205
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
b) Summarized Financial Information on Subsidiaries with Material Non-Controlling Interests
SUMMARIZED BALANCE SHEETS
Nevada Gold Mines
Pueblo Viejo
As at
Dec. 31,
2022
As at
Dec. 31,
2021
As at
Dec. 31,
2022
As at
Dec. 31,
2021
Tanzania Mines1
As at
Dec. 31,
2022
As at
Dec. 31,
2021
Loulo-Gounkoto
Tongon
As at
Dec. 31,
2022
As at
Dec. 31,
2021
As at
Dec. 31,
2022
As at
Dec. 31,
2021
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
$ 2,408 $ 3,351 $ 485 $
13,750
13,863
5,003
394 $
437 $
637 $ 928 $
444 $ 158 $
4,724
1,917
1,798
3,602
4,712
165
$ 16,271 $ 17,101 $ 5,488 $ 5,118 $ 2,354 $ 2,435 $ 4,530 $ 5,156 $ 323 $
800
561
889
586
926
189
141
170
633
1,135
1,249
$ 1,721 $ 1,805 $ 2,310 $ 1,882 $ 1,222 $ 1,452 $ 749 $
1,244
1,421
526
560
422
575
716 $ 216 $
46
205
192
397
76
59
135
SUMMARIZED STATEMENTS OF INCOME
For the years ended
December 31
Revenue
Income (loss) from
continuing operations
after tax
Other comprehensive
income
Total comprehensive
income (loss)
Dividends paid to NCI2
Nevada Gold Mines
Pueblo Viejo
Tanzania Mines1
Loulo-Gounkoto
Tongon
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
$ 5,573 $ 6,135 $ 1,303 $ 1,514 $ 1,032 $
993 $ 1,236 $ 1,249 $ 356 $
368
3,018
2,246
170
361
210
284
(912)
322
1
9
–
–
–
–
–
–
(4)
–
$ 3,019 $ 2,255 $ 170 $
60 $
$
848 $
626 $
361 $
48 $
210 $
3 $
284 $
– $
(912) $
35 $
322 $
51 $
(4) $
13 $
52
–
52
20
SUMMARIZED STATEMENTS OF CASH FLOWS
For the years ended
December 31
Net cash provided by
operating activities
Net cash used in
investing activities
Net cash provided
by (used in)
financing activities
Net increase (decrease)
in cash and cash
equivalents
Nevada Gold Mines
Pueblo Viejo
Tanzania Mines1
Loulo-Gounkoto
Tongon
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
$ 2,693 $ 3,035 $ 524 $
541 $
275 $
373 $ 459 $
605 $
75 $
61
(1,103)
(962)
(599)
(522)
(253)
(178)
(322)
(297)
(32)
(17)
(1,631)
(2,208)
67
(101)
(222)
(100)
(176)
(254)
(76)
(143)
$
(41) $
(135) $
(8) $
(82) $
(200) $
95 $
(39) $
54 $
(33) $
(99)
1 Tanzania mines consist of the two operating mines (North Mara and Bulyanhulu) and Buzwagi which transitioned into closure early in the third quarter of 2021.
2 Includes partner distributions.
33. RELATED PARTY TRANSACTIONS
The Company’s related parties include its subsidiaries, joint operations,
joint ventures and key management personnel. During its normal
course of operations, the Company enters into transactions with its
related parties for goods and services. Transactions between the
Company and its subsidiaries and joint operations, which are related
parties of the Company, have been eliminated on consolidation and
are not disclosed in this note. There were no other material related
party transactions reported in the year.
Remuneration of Key Management Personnel
Key management personnel include the members of the Board of
Directors and the executive leadership team. Compensation for key
management personnel (including Directors) was as follows:
For the years ended December 31
2022
2021
Salaries and short-term
employee benefits1
Post-employment benefits2
Share-based payments and other3
$
$
33
4
31
68
$
$
36
6
25
67
1 Includes annual salary and annual short-term incentives/other bonuses
earned in the year.
2 Represents Company contributions to retirement savings plans.
3 Relates to DSU, RSU, and PGSU grants and other compensation.
206
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
34. STOCK-BASED COMPENSATION
a) Restricted Share Units (RSUs) and Deferred Share
Units (DSUs)
Compensation expense for RSUs was a $23 million charge to earnings
in 2022 (2021: $31 million) and is presented as a component of general
and administrative expenses and cost of sales, consistent with the
classification of other elements of compensation expense for those
employees who had RSUs.
Compensation expense for RSUs incorporates an expected
forfeiture rate. The expected forfeiture rate is estimated based on
historical forfeiture rates and expectations of future forfeiture rates.
We make adjustments if the actual forfeiture rate differs from the
expected rate. At December 31, 2022, the weighted average remaining
contractual life of RSUs was 0.80 years (2021: 0.75 years).
DSU AND RSU ACTIVITY
(NUMBER OF UNITS IN THOUSANDS)
DSUs
Fair
value
RSUs
Fair
value
At January 1, 2021
561 $ 12.8
2,623 $ 38.6
Settled for cash
Granted
Credits for dividends
Change in value
–
117
–
–
–
2.2
–
(2.4)
(1,435)
1,300
30
–
(36.2)
26.4
0.6
1.6
At December 31, 2021
678 $ 12.6
2,518 $ 31.0
Settled for cash
Granted
Credits for dividends
Change in value
–
159
–
–
–
2.9
–
(1.1)
(1,656)
1,406
69
–
(29.2)
24.2
1.3
(1.0)
At December 31, 2022
837 $ 14.4
2,337 $ 26.3
b) Performance Granted Share Units (PGSUs)
In 2014, Barrick launched a PGSU plan. Under this plan, selected
employees are granted PGSUs, where each PGSU has a value equal
to one Barrick common share. At December 31, 2022, 3,117 thousand
units had been granted at a fair value of $38 million (2021: 2,873
thousand units at a fair value of $43 million).
35. CONTINGENCIES
Certain conditions may exist as of the date the financial statements are
issued that may result in a loss to the Company, but which will only be
resolved when one or more future events occur or fail to occur. The
impact of any resulting loss from such matters affecting these financial
statements and noted below may be material.
Litigation and Claims
In assessing loss contingencies related to legal proceedings that
are pending against us or unasserted claims that may result in such
proceedings, the Company with assistance from its legal counsel,
evaluates the perceived merits of any legal proceedings or unasserted
claims as well as the perceived merits of the amount of relief sought or
expected to be sought.
Proposed Canadian Securities Class Actions (Pascua-Lama)
Proposed securities class actions have been commenced against
the Company and four of its former senior executives (Aaron Regent,
Jamie Sokalsky, Ammar Al-Joundi and Peter Kinver) in Ontario
and Quebec. The proceedings pertain to the Company’s public
disclosures concerning the Pascua-Lama Project. In the Ontario
litigation, the Plaintiffs have alleged that Barrick made false and
misleading statements to the investing public during the period from
approximately July 2011 to October 2013 relating to capital cost and
schedule estimates for Pascua-Lama, environmental compliance
matters in Chile, as well as alleged internal control failures and certain
accounting-related matters.
The claim for damages is stated to be more than $3 billion.
In the Quebec litigation, the Plaintiff has alleged that Barrick made
misrepresentations during the period from approximately April 2011 to
October 2013 concerning environmental compliance matters in Chile.
An unspecified amount of damages is being sought.
In both Ontario and Quebec, the proposed representative
Plaintiffs brought motions seeking: (i) leave of the Court to proceed
with statutory secondary market misrepresentation claims pursuant to
provincial securities legislation; and (ii) orders certifying the actions
as class actions, and therefore allowing the proposed representative
Plaintiffs to pursue statutory secondary market misrepresentation
claims and other claims on behalf of the proposed classes.
In the Quebec proceeding, the Superior Court of Quebec denied
both motions in March 2020. The proposed representative Plaintiff
appealed to the Quebec Court of Appeal, which rendered its decision
on December 19, 2022. The Court of Appeal allowed the appeal in part.
It granted leave to proceed as against the Company, Mr. Sokalsky
and Mr. Al-Joundi in respect of a statutory secondary market claim
pertaining to a statement concerning the water management system
in Chile made by the Company in its Management’s Discussion and
Analysis for the second quarter of 2012. The Court also granted class
certification in respect of that claim. The Court denied the remainder
of the appeal. As a result, as matters currently stand, the proposed
representative Plaintiff can pursue a single statutory secondary market
misrepresentation claim on behalf of a putative class of shareholders
who acquired Barrick shares during the period from July 26, 2012
to October 31, 2013. He cannot pursue any of the other statutory
secondary market misrepresentation claims he had purported to
assert, and can only pursue his claims pursuant to the primary market
provisions of the Quebec Securities Act and the Civil Code of Quebec
on an individual basis rather than on behalf of other shareholders.
Barrick is considering whether to seek leave to appeal from the decision
of the Quebec Court of Appeal to the Supreme Court of Canada.
In the Ontario proceeding, the motion for leave to proceed with
statutory secondary market misrepresentation claims was originally
heard in July 2019. In October 2019, the Ontario Superior Court of
Justice dismissed all of those claims except for one. The Court granted
leave to proceed as against Barrick, Mr. Sokalsky and Mr. Al-Joundi
in respect of a claim pertaining to the same statement in Barrick’s
Management’s Discussion and Analysis for the second quarter of
2012 as is referred to above. The Plaintiffs appealed to the Court of
Appeal for Ontario. In February 2021, the Court of Appeal allowed the
proposed representative plaintiffs’ appeal in part. The Court of Appeal
set aside the Superior Court’s decision dismissing statutory secondary
market misrepresentation claims pertaining to the Company’s capital
cost and scheduling estimates as well as to certain accounting and
financial reporting issues, and remitted to the Ontario Superior Court
the issue of whether leave to proceed should be granted in respect
of those claims. The Court of Appeal upheld the Superior Court’s
decision dismissing statutory secondary market misrepresentation
claims pertaining to certain environmental matters in Chile.
207
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS On April 22, 2015, CMN was notified that the SMA had initiated
a new administrative proceeding for alleged deviations from certain
requirements of the Project’s environmental approval, including
with respect to the Project’s environmental impact and a series of
monitoring requirements. In May 2015, CMN submitted a compliance
program to address certain of the allegations and presented its
defense to the remainder of the alleged deviations. The SMA rejected
CMN’s proposed compliance program on June 24, 2015, and denied
CMN’s administrative appeal of that decision on July 31, 2015. On
December 30, 2016, the Environmental Court rejected CMN’s appeal
and CMN declined to challenge this decision.
On June 8, 2016, the SMA consolidated the two administrative
proceedings against CMN into a single proceeding encompassing both
the reconsideration of the Original Resolution in accordance with the
decision of the Environmental Court and the alleged deviations from
the Project’s environmental approval notified by the SMA in April 2015.
On January 17, 2018, CMN received the revised resolution (the
“Revised Resolution”) from the SMA, in which the environmental
regulator reduced the original administrative fine from approximately
$16 million to $11.5 million and ordered the closure of existing surface
facilities on the Chilean side of the Project in addition to certain
monitoring activities. The Revised Resolution does not revoke the
Project’s environmental approval. CMN filed an appeal of the Revised
Resolution on February 3, 2018 with the First Environmental Court of
Antofagasta (the “Antofagasta Environmental Court”).
On October 12, 2018, the Antofagasta Environmental Court issued
an administrative ruling ordering review of the significant sanctions
ordered by the SMA. CMN was not a party to this process. In its ruling,
the Antofagasta Environmental Court rejected four of the five closure
orders contained in the Revised Resolution and remanded the related
environmental infringements back to the SMA for further consideration.
A new resolution from the SMA with respect to the sanctions for
these four infringements could include a range of potential sanctions,
including additional fines, as provided in the Chilean legislation. The
Antofagasta Environmental Court upheld the SMA’s decision to order
the closure of the Chilean side of the Project for the fifth infringement.
Following the issuance of the Revised Resolution, the Company
reversed the estimated amount previously recorded for any additional
proposed administrative fines in this matter. In addition, the Company
reclassified Pascua-Lama’s proven and probable gold reserves
as measured and indicated resources and recorded a pre-tax
impairment of $429 million in the fourth quarter of 2017. No additional
amounts have been recorded for any potential liability arising from
the Antofagasta Environmental Court’s October 12, 2018 ruling and
subsequent review by the SMA, as the Company cannot reasonably
predict any potential losses and the SMA has not issued any additional
proposed administrative fines.
On March 14, 2019, the Chilean Supreme Court annulled
the October 12, 2018 administrative decision of the Antofagasta
Environmental Court on procedural grounds and remanded the case
back to the Environmental Court for review by a different panel of
judges. The Chilean Supreme Court did not review the merits of the
Revised Resolution, which remains in effect.
On September 17, 2020, the Antofagasta Environmental Court
issued a ruling in which it upheld the closure order and sanctions
imposed on CMN by the SMA in the Revised Resolution from January
2018. As part of its ruling, the Environmental Court also ordered the
SMA to reevaluate certain environmental infringements contained in
the Revised Resolution which may result in the imposition of additional
fines against CMN. The Company confirmed that it will not appeal the
Environmental Court’s decision, and the Chilean side of the Pascua-
Lama project will be transitioned to closure in accordance with that ruling.
On March 22, 2022, the Ontario Superior Court of Justice rendered
its decision concerning the Plaintiffs’ motion for leave to proceed with
statutory secondary market misrepresentation claims pertaining to
Barrick’s capital cost and schedule estimates for the Pascua-Lama
project and various accounting and financial reporting matters. In its
decision, the Court denied leave to proceed in respect of all but two
of those claims. The Court solicited additional submissions from the
parties before deciding whether to grant leave to proceed in respect
of the two remaining claims. On July 18, 2022, the Court rendered a
supplemental decision granting the Plaintiffs leave to proceed with the
two claims in question as against Barrick, Mr. Regent and Mr. Sokalsky.
The Company filed a motion with the Ontario Divisional Court for
leave to appeal from the decision granting the Plaintiffs leave to proceed
with those two claims. That motion was dismissed on November 29,
2022. The Plaintiffs have appealed to the Court of Appeal for Ontario
from the decision of the Superior Court to deny leave to proceed in
respect of their other statutory secondary market claims.
The motion for class certification in Ontario has not yet been
heard. The Ontario Superior Court has indicated that it does not intend
to hear that motion until after the Plaintiffs’ motion for leave to proceed
has been fully determined.
The Company intends to vigorously defend the proposed
Canadian securities class actions. No amounts have been recorded for
any potential liability arising from any of the proposed class actions, as
the Company cannot reasonably predict the outcome in either Ontario
or Quebec.
Pascua-Lama – SMA Regulatory Sanctions
In May 2013, Compañía Minera Nevada (“CMN”), Barrick’s Chilean
subsidiary that holds the Chilean portion of the Project, received a
Resolution (the “Original Resolution”) from Chile’s environmental
regulator (the Superintendencia del Medio Ambiente, or “SMA”) that
requires CMN to complete the water management system for the
Project in accordance with the Project’s environmental permit before
resuming construction activities in Chile. The Original Resolution
also required CMN to pay an administrative fine of approximately
$16 million for deviations from certain requirements of the Project’s
Chilean environmental approval, including a series of reporting
requirements and instances of non-compliance related to the Project’s
water management system. CMN paid the administrative fine in
May 2013.
In June 2013, CMN began engineering studies to review the
Project’s water management system in accordance with the Original
Resolution. The studies were suspended in the second half of 2015 as
a result of CMN’s decision to file a temporary and partial closure plan
for the Project. The review of the Project’s water management system
may require a new environmental approval and the construction of
additional water management facilities.
In June 2013, a group of local farmers and indigenous communities
challenged the Original Resolution. The challenge, which was brought
in the Environmental Court of Santiago, Chile, claimed that the fine
was inadequate and requested more severe sanctions against CMN
including the revocation of the Project’s environmental permit. The
SMA presented its defense of the Original Resolution in July 2013. On
August 2, 2013, CMN joined as a party to this proceeding and vigorously
defended the Original Resolution. On March 3, 2014, the Environmental
Court annulled the Original Resolution and remanded the matter back
to the SMA for further consideration in accordance with its decision
(the “Environmental Court Decision”). In particular, the Environmental
Court ordered the SMA to issue a new administrative decision that
recalculated the amount of the fine to be paid by CMN using a different
methodology and addressed certain other errors it identified in the
Original Resolution. The Environmental Court did not annul the portion
of the Original Resolution that required CMN to halt construction on
the Chilean side of the Project until the water management system
is completed in accordance with the Project’s environmental permit.
On December 30, 2014, the Chilean Supreme Court declined to
consider CMN’s appeal of the Environmental Court Decision on
procedural grounds. As a result of the Supreme Court’s ruling, on
April 22, 2015, the SMA reopened the administrative proceeding
against CMN in accordance with the Environmental Court Decision.
208
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS On October 6, 2020, a group of local farmers challenged the
Environmental Court’s decision. The challenge, which was brought
before the Chilean Supreme Court, claimed that the fines imposed
by the SMA were inadequate and seeks to require the SMA to issue
additional and more severe sanctions against CMN. On July 12, 2022,
the Chilean Supreme Court rejected that appeal and as a result, the
SMA will now determine the appropriate administrative fine to be
imposed on CMN with respect to two environmental infringements in
accordance with the Environmental Court’s decision.
No amounts have been recorded for any potential liability arising
from this matter, as the Company cannot reasonably predict the
amount of the additional administrative fine to be imposed by the SMA.
Veladero – Operational Incidents and Associated Proceedings
Minera Andina del Sol SRL (formerly, Minera Argentina Gold SRL)
(“MAS”), the joint venture company that operates the Veladero mine,
is the subject of various regulatory proceedings related to operational
incidents at the Veladero Valley Leach Facility (“VLF”) occurring in March
2017 (the “March 2017 incident”), September 2016 (the “September
2016 incident”) and September 2015 (the “September 2015 incident”),
and involving the San Juan Provincial mining authority, the Argentine
federal government, and certain residents of Jachal, Argentina.
Regulatory authorities were notified following the occurrence of each
of these incidents, and remediation and/or monitoring activities were
undertaken as appropriate. Although the September 2015 incident
resulted in the release of cyanide-bearing process solution into a
nearby waterway, environmental monitoring conducted by MAS and
an independent third party has demonstrated that the incident posed
no risk to human health at downstream communities. Monitoring and
inspection following the September 2016 incident and remediation
and inspection following the March 2017 incidents confirmed that
those incidents did not result in any long-term environmental impacts.
Regulatory Proceedings and Actions
San Juan Provincial Regulatory Proceedings
On October 9, 2015, the San Juan Provincial mining authority initiated
an administrative sanction process against MAS for alleged violations
of the Mining Code relating to the September 2015 incident. MAS was
formally notified of the imposition of an administrative fine in connection
with the incident on March 15, 2016. MAS sought reconsideration
of certain aspects of the decision but paid the administrative fine of
approximately $10 million (at the then-applicable Argentine peso to
U.S. dollar exchange rate) while the request for reconsideration was
pending. After the San Juan government rejected MAS’ administrative
appeal of this decision, on September 5, 2017, the Company
commenced a legal action to continue challenging certain aspects of
the decision before the San Juan courts, which is ongoing.
MAS is also the subject of a consolidated provincial regulatory
proceeding related to the September 2016 incident and the March
2017 incident. MAS received notice of a resolution on December 27,
2017, from the San Juan Provincial mining authority requiring payment
of an administrative fine of approximately $5.6 million (calculated
at the prevailing exchange rate on December 31, 2017) for both
the September 2016 incident and the March 2017 incident. On
January 23, 2018, in accordance with local requirements, MAS paid the
administrative fine and filed a request for reconsideration and an appeal
with the San Juan Provincial mining authority. MAS was notified in
March 2018 that the San Juan Provincial mining authority had rejected
the request for reconsideration of the administrative fine. The pending
appeal will be heard and decided by the Governor of San Juan.
Provincial Amparo Action
Following the March 2017 incident, an “amparo” protection action
(the “Provincial Amparo Action”) was filed against MAS in the Jachal
First Instance Court, San Juan Province (the “Jachal Court”) by
individuals who claimed to be living in Jachal, San Juan Province,
Argentina, seeking the cessation of all activities at the Veladero mine
or, alternatively, a suspension of the mine’s leaching process. On
March 30, 2017, the Jachal Court rejected the request for an injunction
to cease all activities at the Veladero mine, but ordered, among other
things, the suspension of the leaching process. The Jachal Court lifted
the leaching process suspension in June 2017. The Jachal Court tried
to join this proceeding with the Federal Amparo Action (as defined
below), triggering a jurisdictional dispute. On December 26, 2019,
the Argentine Supreme Court ruled on the jurisdictional dispute in
favor of the Federal Court in connection with the Federal Amparo
Action described below, meaning that the Jachal Court has retained
jurisdiction over the Provincial Amparo Action and the two amparo
actions were not effectively joined. The Provincial Amparo Action case
file has not yet been remitted to the Jachal Court by the Supreme
Court (see “Federal Amparo Action” below).
Federal Amparo Action
On April 4, 2017, the National Minister of Environment of Argentina
filed an amparo protection action in the Federal Court in connection
with the March 2017 incident (the “Federal Amparo Action”) seeking
an order requiring the cessation and/or suspension of activities at
the Veladero mine. MAS submitted extensive information to the
Federal Court about the incident, the then-existing administrative
and provincial judicial suspensions, the remedial actions taken by the
Company and the lifting of the suspension orders described in the
Provincial Amparo Action above, and challenged the jurisdiction of
the Federal Court as well as the standing of the National Minister of
Environment and requested that the matter be remanded to the Jachal
Court. The Province of San Juan also challenged the jurisdiction
of the Federal Court in this matter. On December 26, 2019, the
Argentine Supreme Court ruled on the jurisdictional dispute in favor
of the Federal Court. The Company was notified on October 1, 2020,
that the National Ministry of the Environment had petitioned the
Federal Court to resume the proceedings following the Supreme
Court’s decision that the Federal Court is competent to hear the case.
The Federal Court ordered the resumption of the proceedings on
February 19, 2021.
On October 12, 2022, MAS received notice of the Federal Amparo
Action. MAS submitted its response on October 27, 2022. The matter
remains pending before the Federal Court.
Civil Action
On December 15, 2016, MAS was served notice of a civil action filed
before the San Juan Provincial Court by certain persons allegedly living
in Jachal, San Juan Province, claiming to be affected by the Veladero
mine and, in particular, the VLF. The plaintiffs requested a court order
that MAS cease leaching metals with cyanide solutions, mercury and
other similar substances at the mine and replace that process with
one that is free of hazardous substances, implement a closure and
remediation plan for the VLF and surrounding areas, and create a
committee to monitor this process. These claims were supplemented
by new allegations that the risk of environmental damage had
increased as a result of the March 2017 incident. MAS replied to the
lawsuit in February 2017 and it also responded to the supplemental
claim and intends to continue defending this matter vigorously.
209
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Criminal Matters
Federal Criminal Matters
A federal criminal investigation was initiated by a Buenos Aires federal
court (the “Federal Court”) based on the alleged failure of certain
current and former federal and provincial government officials and
individual directors of MAS to prevent the September 2015 incident
(the “Federal Investigation”). On May 5, 2016, the National Supreme
Court of Argentina limited the scope of the Federal Investigation to the
potential criminal liability of the federal officials, ruling that the Federal
Court does not have jurisdiction to investigate the solution release.
On April 11, 2018, the federal judge indicted three former federal
officials, alleging breach of duty in connection with their actions and
omissions related to the failure to maintain adequate environmental
controls during 2015 and the case was sent to trial. The proceeding
poses no risk of conviction or liability for any of the directors of MAS.
Glacier Investigation
On October 17, 2016, a separate criminal investigation was initiated
by the federal judge overseeing the Federal Investigation based on the
alleged failure of federal officials to regulate the Veladero mine under
Argentina’s glacier legislation (the “Glacier Investigation”) with regard
to the September 2015 incident. On June 16, 2017, MAS submitted a
motion to challenge the federal judge’s decision to assign the Glacier
Investigation to himself, and to request that it be admitted as a party in
order to present evidence supporting MAS. On September 14, 2017,
the Federal Court of Appeals ordered the federal judge to consolidate
the two investigations and clarified that MAS is not a party to the
case and therefore does not have standing to seek the recusal of the
federal judge, but nonetheless recognized MAS’ right to continue to
participate in the case (without clarifying the scope of those rights).
On November 27, 2017, the federal judge indicted four former
federal officials, alleging abuse of authority in connection with their
actions and omissions related to the enforcement of Argentina’s
glacier legislation. The Court of Appeals confirmed the indictments
and on August 6, 2018, the case was assigned to a federal trial judge.
In total, six former federal officials were indicted under the Federal
Investigation and the Glacier Investigation and will face trial. In 2019,
one of the former federal officials, who was indicted on separate
charges under both investigations, passed away and charges against
him were dropped.
Due to the Argentine response to Covid-19 and a procedural
challenge by one of the former federal officials, the oral arguments
originally scheduled for April and May 2020 in this matter have been
postponed and have not yet been rescheduled.
Veladero – Tax Assessment and Criminal Charges
On December 26, 2017, MAS received notice of a tax assessment
(the “Tax Assessment”) for 2010 and 2011, amounting to ARS
543 million (approximately $3.1 million at the prevailing exchange
rate at December 31, 2022), plus interest and fines. The Tax
Assessment primarily claims that certain deductions made by MAS
were not properly characterized, including that (i) the interest and
foreign exchange on loans borrowed between 2002 and 2006 to
fund Veladero’s construction should have been classified as equity
contributions, and (ii) fees paid for intercompany services were not for
services related to the operation of the Veladero mine.
On June 21, 2018, the Argentinean Federal Tax Authority (“AFIP”)
confirmed the Tax Assessment, which MAS appealed to the Federal
Tax Court on July 31, 2018. A hearing for the appeal has not yet
been scheduled.
The Company filed Mutual Agreement Procedure applications in
Canada on December 21, 2018, and in Argentina on March 29, 2019,
pursuant to the Canada-Argentina Income Tax Convention Act (the
“Canada-Argentina Tax Treaty”) to escalate resolution of the Tax
Assessment to the competent authority (as defined in the Canada-
Argentina Tax Treaty) in an effort to seek efficient resolution of the matter.
210
In November 2018, MAS received notice that AFIP filed criminal
charges against current and former employees serving on its board of
directors when the 2010 and 2011 tax returns were filed (the “Criminal
Tax Case”).
Hearings for the Criminal Tax Case were held between March 25
and March 27, 2019. The defendants filed a motion to dismiss based
on the statute of limitations, which was granted in part and appealed
by the prosecution.
On June 2, 2021, the trial court issued a decision dismissing
the Criminal Tax Case against the directors. AFIP appealed and on
September 24, 2021, the Mendoza Federal Court of Appeals partially
reversed the trial court’s decision, ruling that there was insufficient
evidence to either indict the directors or dismiss the case against
them, and ordering additional investigation by the trial court. The
Criminal Tax Case was remanded to the trial court in accordance with
the decision of the Mendoza Federal Court of Appeals, and the trial
court has ordered additional evidence to be prepared by the court-
appointed expert.
On February 4, 2022, the Argentine Minister of Economy, the
competent authority in this matter, issued a decision denying the
application of the Canada-Argentina Tax Treaty to the Tax Assessment.
MAS appealed this decision on February 18, 2022.
Separately, on April 12, 2022, the trial court issued a ruling
dismissing the criminal charges against the MAS directors in the
Criminal Tax Case. AFIP appealed this ruling to the Court of Appeals.
On November 7, 2022, the Court of Appeals affirmed the dismissal
of the charges. AFIP challenged this decision before the Court of
Cassation, Argentina’s highest federal criminal court below the National
Supreme Court, which granted leave to appeal on December 29, 2022.
The matter is currently pending before the Court of Cassation.
MAS’s July 2018 appeal of the Tax Assessment remains pending
before the Federal Tax Court.
The Company believes that the Tax Assessment and the
Criminal Tax Case are without merit and intends to defend the
proceedings vigorously.
Perilla Complaint
In 2009, Barrick Gold Inc. and Placer Dome Inc. were purportedly
served in Ontario with a complaint filed in November 2008 in the
Regional Trial Court of Boac (the “Court”), on the Philippine island of
Marinduque, on behalf of two named individuals and purportedly on
behalf of the approximately 200,000 residents of Marinduque. The
complaint alleges injury to the economy and the ecology of Marinduque
as a result of the discharge of mine tailings from the Marcopper mine
into Calancan Bay, the Boac River, and the Mogpog River. Placer
Dome Inc., which was acquired by the Company in 2006, had been a
minority indirect shareholder of the Marcopper mine. The plaintiffs are
claiming for abatement of a public nuisance allegedly caused by the
tailings discharge and for nominal damages for an alleged violation of
their constitutional right to a balanced and healthful ecology. In June
2010, Barrick Gold Inc. and Placer Dome Inc. filed a motion to have the
Court resolve their unresolved motions to dismiss before considering
the plaintiffs’ motion to admit an amended complaint and also filed
an opposition to the plaintiffs’ motion to admit on the same basis. By
Order dated November 9, 2011, the Court granted a motion to suspend
the proceedings filed by the plaintiffs. To date, neither the plaintiffs nor
the Company have advised the Court of an intention to resume the
proceedings and the matter has been inactive since November 2011.
The Company intends to defend the action vigorously. No amounts
have been recorded for any potential liability under this complaint, as
the Company cannot reasonably predict the outcome.
Writ of Kalikasan
In April 2010, the Supreme Court in the Republic of the Philippines
adopted new Rules of Procedure for Environmental Cases (the
“Environmental Rules”). The Environmental Rules purport to create a
new special civil action or remedy called a “Writ of Kalikasan” available
to persons whose constitutional right to a balanced and healthful
ecology is violated, or threatened with violation. The remedies available
under this procedure are in the nature of injunctive orders preventing
continued harm to the environment and orders for rehabilitation or
remediation of the environment. Damages are not an available remedy
under this procedure.
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS On February 25, 2011, a Petition for the Issuance of a Writ of
Kalikasan with Prayer for Temporary Environmental Protection
Order was filed in the Supreme Court of the Republic of the
Philippines by Eliza M. Hernandez, Mamerto M. Lanete and Godofredo
L. Manoy against Placer Dome Inc. (“Placer Dome”) and the Company
(the “Petition”). The Petition was subsequently transferred to the Court
of Appeals.
The Petition alleges that Placer Dome violated the Petitioners’
constitutional right to a balanced and healthful ecology as a result
of, amongst other things, the discharge of tailings into Calancan Bay,
the 1993 Maguila-Guila dam breach, the 1996 Boac river tailings
spill and the failure of Marcopper Mining Corporation (“Marcopper”)
to properly decommission the Marcopper mine. Placer Dome was a
minority indirect shareholder of Marcopper at all relevant times. The
Petitioners have pleaded that Barrick is liable for the alleged actions
and omissions of Placer Dome and are seeking orders requiring
Barrick to environmentally remediate the areas in and around the mine
site that are alleged to have sustained environmental impacts.
On April 4, 2011, the Company filed its Return Ad Cautelam (or
defence pleading) seeking the dismissal of the Petition with prejudice.
Barrick also filed extensive affidavit evidence as required by the
Environmental Rules. Placer Dome adopted the Company’s defence
as its own.
All appearances by the Company or Placer Dome in the Supreme
Court and the Court of Appeals in this matter have been by way of
special and limited appearance and without submitting themselves to
the jurisdiction of either Court.
The Company filed a motion in March 2011 challenging the
constitutionality of the Environmental Rules and the jurisdiction of the
Court. On October 18, 2019, the Court of Appeals decided the motion
and rejected the Company’s constitutional objections. The Court also
held that it has jurisdiction based on a “tentative” determination that
the Company was doing business in the Philippines made exclusively
on the basis of unproved allegations made by the Petitioners in
the Petition, which “tentative” determination expressly does not
foreclose the possibility of a contrary finding on the basis of evidence
at a later date.
In November 2011, the case was suspended to permit the parties
to explore the possibility of a settlement. Settlement discussions
ended unsuccessfully in early 2014, but the proceedings were not
re-activated until March 2019 when the Court of Appeals granted the
Petitioners’ motion and lifted the order suspending the proceedings.
In December 2019, depositions of all of the Company’s witnesses
were conducted. Petitioners’ counsel did not appear at these
depositions or conduct any cross-examination of the Company’s
witnesses. These transcripts now form part of the evidence in the
Court record for the merits hearing and the Petitioners have foregone
the opportunity to cross-examine the Company’s witnesses.
Since fall 2019, the Petitioners have taken numerous steps to
attempt to file additional evidence and to seek to expand the case
beyond the scope of the matters pleaded in the Petition, including
to alleged maintenance and structural integrity issues of Marcopper
mine infrastructure.
On October 27, 2020, the Province of Marinduque (the “Province”)
filed a Motion for Leave to Intervene and a Petition-in-Intervention
(the “Intervention Motion”). On January 21, 2021, the Court of
Appeals granted the Province’s Intervention Motion and admitted the
Province’s Petition-in-Intervention. In the Petition-in-Intervention, the
Province seeks to expand the scope of relief sought within the Writ
of Kalikasan proceeding to include claims seeking rehabilitation and
remediation of alleged maintenance and structural integrity issues
of Marcopper mine infrastructure. On June 24, 2021, the Company
filed an urgent motion asking the Court of Appeals to clarify whether
its granting leave to the Province to intervene in the Petition expands
the scope of issues being litigated in the proceeding. This motion is
pending and has not yet been decided by the Court.
On June 25, 2021, the Company filed a Return Ad Cautelam in
response to the Province’s Petition-in-Intervention.
On November 2, 2021, the Company filed a Motion to Strike
and Reply in respect of the Province’s Petition-in-Intervention. In
the Motion to Strike and Reply, the Company seeks to strike those
portions of the Petition-in-Intervention that seek to expand the issues
or seek novel and additional relief for alleged wrongdoing that is not
pleaded in the Petitioners’ Writ of Kalikasan proceeding. This motion
is pending and has not yet been decided by the Court.
On February 17, 2021, the Province filed a Motion to Implead
asking the Court of Appeals to add Marcopper as a respondent. On
June 14, 2021, the Court of Appeals denied the Province’s Motion
to add Marcopper as a respondent. On July 2, 2021, the Province of
Marinduque filed a Motion for Reconsideration of the June 14, 2021
decision. This motion is pending and has not yet been decided by
the Court.
On December 2, 2020, the trial commenced and the trial resumed
on January 27, 2021 and again on July 6, 2021, with the Petitioners
calling a total of three witnesses over all three trial dates in addition to
the two Petitioners (whose affidavits were accepted into evidence on
agreement without the requirement to attend in person).
On July 26, 2021, the Petitioners filed their Formal Offer of
Evidence, which formally concludes the Petitioners’ evidence portion
of the trial. On October 27, 2021, the Company filed its Comments
and Opposition to the Petitioners’ Formal Offer of Evidence dated
July 26, 2021. The Court has not yet resolved the outstanding issues
concerning the Petitioners’ Formal Offer of Evidence.
No further trial dates have been set for the Company’s evidence
portion of the trial or for the hearing of the Province’s Petition-in-
Intervention.
On June 30, 2022 the Company filed a Motion with the Court
seeking court-ordered mediation between the Company and the
Province. On October 26, 2022 the Court granted the Motion. Court-
annexed mediation attendances took place on November 18, 2022
and January 11, 2023 and a tentative further attendance is scheduled
for February 22, 2023. The Court granted an initial 60 day suspension
of the proceedings to allow for the mediation and the parties have filed
a joint motion to extend the initial 60 day suspension of proceedings
for a further 60 days to March 18, 2023.
No amounts have been recorded for any potential liability under
this matter, as the Company cannot reasonably predict the outcome.
The Company intends to continue to defend the action vigorously.
Reko Diq Arbitration
In November 2011, Tethyan Copper Company Pty Limited (“TCC”), a
joint venture company through which the Company and Antofagasta
plc (“Antofagasta”) each held a 37.5% interest in the Reko Diq
project in Pakistan–filed a request for international arbitration against
the Government of Pakistan (“GOP”) with the International Centre
for Settlement of Investment Disputes (“ICSID”) and against the
Government of Balochistan (“GOB”) with the International Chamber
of Commerce (“ICC”). In the ICSID arbitration, TCC asserted breaches
of the Bilateral Investment Treaty (“BIT”) between Australia (where
TCC is incorporated) and Pakistan while in the ICC arbitration, TCC
asserted breaches of TCC’s joint venture agreement with the GOB.
Both arbitrations arose out of the unlawful denial of TCC’s application
for a mining lease.
In July 2019, the ICSID tribunal found that Pakistan had breached
the BIT and awarded $5.84 billion in damages to TCC (the “ICSID
Award”). Damages included compensation of $4.087 billion in relation
to the fair market value of the Reko Diq project at the time the mining
lease was denied, and interest until the date of the ICSID Award of
$1.753 billion. Compound interest was to continue to apply at a rate of
US Prime +1% per annum until the ICSID Award was paid. That same
month, the ICC Tribunal issued a partial award, in which it held that
certain findings made by the ICSID Tribunal should have preclusive
effect in the ICC proceedings (the “ICC Partial Award”).
Pakistan initiated two different proceedings seeking to annul
and revise the ICSID Award, respectively. Meanwhile, TCC initiated
proceedings in Washington D.C., the British Virgin Islands, Australia,
and elsewhere seeking to enforce the ICSID Award. GOB likewise
brought a challenge before the United Kingdom High Court seeking to
set aside the ICC Partial Award.
211
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS While these various proceedings progressed, the Company
engaged with the GOP and the GOB to discuss a mutually acceptable
framework agreement for the potential development of the Reko Diq
project. On March 20, 2022, the Company executed an Umbrella
Agreement with Antofagasta plc and the two Governments, pursuant
to which, if the conditions to closing were satisfied, the project would
be reconstituted with Barrick as the operator and with Antofagasta
exiting the project.
Pursuant to the Umbrella Agreement, a Temporary Standstill
Agreement was to be executed once certain conditions related to an
escrow account in favor of Antofagasta in the amount of $900 million
were satisfied. These conditions were satisfied, and the Temporary
Standstill Agreement went into effect on April 5, 2022 and all legal and
arbitral proceedings initiated by the parties in relation to the Reko Diq
dispute were suspended while the parties worked toward executing
definitive agreements.
On December 15, 2022, the parties completed the transaction and
executed all definitive agreements allowing for the reconstitution of
the Reko Diq project. The reconstituted project is held 50% by Barrick
and 50% by Pakistani stakeholders, comprising a 10% free-carried,
non-contributing share held by the GOB, an additional 15% held by
a special purpose company owned by the GOB, and 25% owned by
other federal state-owned enterprises. The agreements concluded by
the parties included a Comprehensive Resolution Agreement in which
Barrick, Antofagasta, TCC, GOP, and GOB, waived and released all
claims against each other, including with regard to the ICSID Award
and the ICC Partial Award. Pursuant to that agreement, TCC, GOP,
and GOB subsequently took steps to terminate all pending legal and
arbitration proceedings, including TCC’s actions to enforce the ICSID
Award, GOP’s applications to annul and revise the ICSID Award, and
GOB’s application to set aside the ICC Partial Award.
Porgera Special Mining Lease
Porgera’s Special Mining Lease (“SML”) terminated on August 16,
2019. The Company applied for a 20-year extension of the SML in
June 2017 and has been engaging with the Government of Papua New
Guinea on this matter since then. On August 2, 2019, the National
Court of Papua New Guinea ruled that the provisions of the country’s
1992 Mining Act applied to the Porgera gold mine, thus allowing it to
continue operating while the application to extend its SML was being
considered.
On April 25, 2020, the Porgera gold mine was put on care and
maintenance, after Barrick Niugini Limited (“BNL”), the 95% owner
and operator of the Porgera joint venture, received a communication
from the Government of Papua New Guinea that its application for the
20-year extension of the SML had been refused. While the Company
believed the Government’s decision not to extend the SML was
tantamount to nationalization without due process and in violation of
the Government’s legal obligations to BNL, it nevertheless engaged in
discussions with Prime Minister Marape and his Government to agree
on a revised arrangement under which the Porgera mine could be
reopened, for the benefit of all stakeholders involved.
On April 9, 2021, BNL signed a binding Framework Agreement
with the Independent State of Papua New Guinea (“PNG”) and Kumul
Minerals Holdings Limited (“Kumul Minerals”), a state-owned mining
company, setting out the terms and conditions for the reopening of
the Porgera mine. On February 3, 2022, the Framework Agreement
was replaced by the more detailed Porgera Project Commencement
Agreement (the “Commencement Agreement”). The Commencement
Agreement was signed by PNG, Kumul Minerals, BNL and its affiliate
Porgera (Jersey) Limited on October 15, 2021, and it became effective
on February 3, 2022, following signature by Mineral Resources Enga
Limited (“MRE”), the holder of the remaining 5% of the original Porgera
joint venture. The Commencement Agreement reflects the commercial
terms previously agreed to under the Framework Agreement, namely
that PNG stakeholders will receive a 51% equity stake in the Porgera
mine, with the remaining 49% to be held by BNL or an affiliate. BNL
is jointly owned on a 50/50 basis by Barrick and Zijin Mining Group.
Accordingly, following the implementation of the Commencement
Agreement, Barrick’s current 47.5% interest in the Porgera mine
is expected to be reduced to a 24.5% interest as reflected in
Barrick’s reserve and resource estimates for Porgera. BNL will retain
operatorship of the mine. The Commencement Agreement also
provides that PNG stakeholders and BNL and its affiliates will share the
economic benefits derived from the reopened Porgera mine on a 53%
and 47% basis over the remaining life of mine, respectively, and that
the Government of PNG will retain the option to acquire BNL’s or its
affiliate’s 49% equity participation at fair market value after 10 years.
On April 21, 2022, the PNG National Parliament passed legislation
to provide, among other things, certain agreed tax exemptions and tax
stability for the new Porgera joint venture. This legislation was certified
on May 30, 2022, and will come into effect following a public notice
process under PNG law.
On September 13, 2022, the Shareholders’ Agreement for the
new Porgera joint venture company was executed by Porgera (Jersey)
Limited, which is an affiliate of BNL, the state-owned Kumul Minerals
(Porgera) Limited and MRE (a previous version of the Shareholders’
Agreement had been signed by the BNL and Kumul parties in April
2022 but was not signed by MRE and therefore did not take effect).
The new Porgera joint venture company was incorporated on
September 22, 2022, and this entity will next apply for a new SML, the
receipt of which is a condition of the reopening of the Porgera mine
under the Commencement Agreement.
The provisions of the Commencement Agreement will be fully
implemented, and work to recommence full mine operations at
Porgera will begin, following the execution of the remaining definitive
agreements and satisfaction of a number of conditions. These include
an Operatorship Agreement pursuant to which BNL will operate
the Porgera mine, as well as a Mine Development Contract to
accompany the new SML that the new Porgera joint venture company
will apply for. Under the terms of the Commencement Agreement,
BNL will remain in possession of the site and maintain the mine on
care and maintenance.
In the meantime, under standstill arrangements contemplated by
the Commencement Agreement, all legal and arbitral proceedings
previously initiated by the parties in relation to the Porgera dispute are
to be suspended. These proceedings include Judicial Review actions
filed by BNL against the Government of Papua New Guinea in April
and September 2020, and international arbitration initiated by Barrick
(PD) Australia Pty Limited, the Company’s subsidiary and an investor
in the Porgera mine, before the World Bank’s ICSID in September
2020. Notwithstanding these arrangements, the PNG courts have
ordered some of the proceedings subject to the standstill to return to
court for hearing. One such proceeding, a Special Reference brought
by the PNG Attorney General to challenge an earlier procedural ruling
in BNL’s favor, was heard by the Supreme Court on December 14,
2022. On January 16, 2023, the Supreme Court held that the Special
Reference was an abuse of process (as contended by BNL) and
declined to answer the questions it posed. Other proceedings subject
to the standstill are listed or in the process of being listed for hearing
in the coming months.
In December 2021, a group of local landowners known as the
Justice Foundation for Porgera initiated a proceeding in the PNG
Supreme Court in which they seek a declaration that as customary
landowners they own and can mine the minerals situated on their
customary lands, including at the Porgera mine, and that certain
provisions of the Mining Act and related provisions of the PNG
Constitution are invalid. On July 7, 2022, the PNG Supreme Court
dismissed the proceeding on technical grounds. The landowners
subsequently filed an application challenging the dismissal of the
proceedings, which was also dismissed by the Supreme Court on
October 25, 2022. BNL had intervened in this matter to protect its rights.
On February 10, 2022, the Company was informed that certain
directors of a shareholder of MRE have sought standing to challenge
the validity of MRE’s signature of the Commencement Agreement and
this matter has been referred to mediation to which BNL is not a party.
212
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS Porgera Tax Audits
In April 2020, BNL received a position paper from the Internal Revenue
Commission (“IRC”) in Papua New Guinea asserting various proposed
adjustments and other tax liabilities amounting to $131 million (not
including penalties, based on the kina foreign exchange rate as at
December 31, 2022) arising from tax audits of BNL conducted for 2006
through 2015. BNL responded to the position paper on June 30, 2020.
On October 2, 2020, BNL received amended assessments from the
IRC which increased the amount of proposed adjustments and other
taxes to $484 million (including penalties, based on the kina foreign
exchange rate as at December 31, 2022). The Company has reviewed
the amended assessments and concluded that there is no merit to
the IRC’s tax audit adjustments, except for certain immaterial items
for which a provision had already been made. BNL filed objections to
the amended assessments on November 30, 2020 in accordance with
the Papua New Guinea Income Tax Act, and the Company remains in
discussions with the IRC with respect to this matter.
To date, the IRC has not reached a determination on the amended
tax assessments. The resolution of BNL’s objections to the IRC’s
amended tax assessments is a condition to the reopening of the
Porgera mine under the Commencement Agreement.
The Company filed Mutual Agreement Procedure applications in
Canada and Papua New Guinea on September 30, 2022, pursuant
to the Canada-Papua New Guinea Income Tax Convention Act (the
“Canada-PNG Tax Treaty”) to escalate resolution of certain elements
of the amended tax assessments to the competent authority (as
defined in the Canada-PNG Tax Treaty) in an effort to seek resolution
of this matter.
The Company intends to defend its position vigorously and has not
recorded any additional estimated amounts for the potential liability
arising from the amended assessments as the Company cannot
reasonably predict the outcome.
Tanzania – Concentrate Export Ban and Related Disputes
On March 3, 2017, the Government of Tanzania (“GoT”) announced a
general ban on the export of metallic mineral concentrates (the “Ban”)
following a directive made by the President to promote the creation of
a domestic smelting industry. Following the directive, Acacia Mining
plc (“Acacia”) ceased all exports of its gold/copper concentrate
(“concentrate”) including containers previously approved for export
prior to the Ban located at the port in Dar es Salaam.
During the second quarter of 2017, the GoT initiated investigations
which resulted in allegations of historical undeclared revenue and
unpaid taxes by Acacia and its predecessor companies. Acacia
subsequently received adjusted assessments for the tax years
2000-2017 from the Tanzania Revenue Authority for a total amount
of approximately $190 billion for alleged unpaid taxes, interest and
penalties. In addition, following the end of the third quarter of 2017,
Acacia was served with notices of conflicting adjusted corporate
income tax and withholding tax assessments for tax years 2005 to
2011 with respect to Acacia’s former Tulawaka joint venture, and
demands for payment, for a total amount of approximately $3 billion.
Acacia disputed these assessments through arbitration and the
Tanzanian tax appeals process, respectively.
In addition to the Ban, new and amended legislation was passed
in Tanzania in early July 2017, including various amendments to the
2010 Mining Act and a new Finance Act. The amendments to the 2010
Mining Act increased the royalty rate applicable to metallic minerals
such as gold, copper and silver to 6% (from 4%), and the new Finance
Act imposes a 1% clearing fee on the value of all minerals exported
from Tanzania from July 1, 2017. In January 2018, new Mining
Regulations were announced by the GoT introducing, among other
things, local content requirements, export regulations and mineral
rights regulations.
On October 19, 2017, Barrick announced that it had agreed with
the GoT on a proposed framework for a new partnership between
Acacia and the GoT. Key terms of the proposed framework announced
by Barrick and the GoT included (i) the creation of a new Tanzanian
company to provide management services to Acacia’s Bulyanhulu,
Buzwagi and North Mara mines and all future operations in the country
with key officers located in Tanzania and Tanzanian representation
on the board of directors; (ii) maximization of local employment of
Tanzanians and procurement of goods and services within Tanzania;
(iii) economic benefits from Bulyanhulu, Buzwagi and North Mara to
be shared on a 50/50 basis, with the GoT’s share delivered in the form
of royalties, taxes and a 16% free carry interest in Acacia’s Tanzanian
operations; and (iv) in support of the working group’s ongoing efforts
to resolve outstanding tax claims, Acacia would make a payment of
$300 million to the GoT, staged over time, on terms to be settled by
the working group. Barrick and the GoT also reviewed the conditions
for the lifting of the Ban.
Following an investigation conducted by the Mining Commission
on July 30 and 31, 2019, the North Mara mine received a letter from
the Mining Commission (the “Inspection Findings Letter”) stating that
it believes that certain provisions of the Mining Regulations, 2010 were
violated and directing the North Mara mine to submit a feasibility study
report and current mine plan for its approval by August 16, 2019. The
Inspection Findings Letter also authorized the resumption of gold exports
from North Mara subject to its adherence to the export procedure.
On July 19, 2019, the Acacia Transaction Committee Directors and
Barrick published a firm offer announcement pursuant to Rule 2.7 of
the City Code on Takeovers and Mergers (“Rule 2.7 Announcement”)
announcing that they had reached agreement on the terms of a
recommended final offer by Barrick for the ordinary share capital
of Acacia that Barrick did not already own, with the belief that the
recommended final offer would enable Barrick to finalize the terms of
a full, final and comprehensive settlement of all of Acacia’s existing
disputes with the GoT. To facilitate this and in anticipation of the
Rule 2.7 Announcement, on July 17, 2019, Acacia announced that
Bulyanhulu Gold Mine Limited and Pangea Minerals Limited would
immediately seek a stay of their international arbitration proceedings
with the GoT.
On September 17, 2019, Barrick completed the acquisition of all of
the shares of Acacia that the Company did not already own pursuant
to a court-ordered scheme of arrangement (the “Scheme”). Acacia
ceased trading on the London Stock Exchange and became a wholly-
owned subsidiary of Barrick called Barrick TZ Limited.
On October 20, 2019, Barrick announced that it had reached
an agreement (the “Framework Agreement”) with the GoT to settle
all disputes between the GoT and the mining companies formerly
operated by Acacia but now managed by Barrick. The final agreements
were submitted to the Tanzanian Attorney General for review and
legalization and the Framework Agreement became effective as of
January 1, 2020.
The terms of the Framework Agreement are consistent with those
previously announced, including the payment of $300 million to settle
all outstanding tax and other disputes (the “Settlement Payment”); the
lifting of the concentrate export ban; the sharing of future economic
benefits from the mines on a 50/50 basis; and a dispute resolution
mechanism that provides for binding international arbitration. The 50/50
division of economic benefits will be maintained through an annual
true-up mechanism, which will not account for the Settlement Payment.
Under the Framework Agreement, the Settlement Payment
is required to be paid in installments, with an initial payment of
$100 million which was paid to the GoT following the resumption
of mineral concentrate exports. Five subsequent annual payments of
$40 million each are to be made, starting on the first anniversary of the
fulfillment of all conditions of the Framework Agreement, subject to
certain cash flow conditions.
213
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS On January 24, 2020, Barrick announced that the Company had
ratified the creation of Twiga (“Twiga”) at a signing ceremony with
the President of Tanzania, formalizing the establishment of a joint
venture between Barrick and the GoT and resolution of all outstanding
disputes between Barrick and the GoT, including the lifting of the
previous concentrate export ban, effective immediately. The GoT
received a free carried shareholding of 16% in each of the Tanzania
mines (Bulyanhulu, Buzwagi and North Mara), a 16% interest in the
shareholder loans owed by the operating companies and will receive
its half of the economic benefits from taxes, royalties, clearing fees
and participation in all cash distributions made by the mines and
Twiga, after the recoupment of capital investments. Twiga will provide
management services to the mines.
In October 2020, Twiga paid a maiden interim cash dividend of
$250 million, of which $40 million was paid to the GoT.
In March 2022, the Company made a further payment of
$40 million, bringing the total amount paid toward the Settlement
Amount to date to $140 million.
Barrick and the GoT have satisfied their respective obligations
under the Framework Agreement and are now working towards
fulfilling their post-completion commitments.
Tanzanian Revenue Authority Assessments
The Tanzanian Revenue Authority (“TRA”) issued a number of tax
assessments to Acacia related to past taxation years from 2002
onwards. Acacia believed that the majority of these assessments were
incorrect and filed objections and appeals accordingly in an attempt to
resolve these matters by means of discussions with the TRA or through
the Tanzanian appeals process. Overall, it was Acacia’s assessment
that the relevant assessments and claims by the TRA were without merit.
The claims include an assessment issued to Acacia in the amount
of $41.3 million for withholding tax on certain historic offshore
dividend payments paid by Acacia (then African Barrick Gold plc) to
its shareholders from 2010 to 2013. Acacia appealed this assessment
on the substantive grounds that, as an English incorporated company,
it was not resident in Tanzania for taxation purposes. In August
2020, the Tanzanian Court of Appeal found African Barrick Gold
plc (now called Barrick TZ Limited) to be tax resident in Tanzania
upholding an earlier decision from the Tanzania Revenue Authority,
and that as a result, withholding tax was payable on the dividends of
$41.3 million, plus accrued interest, previously declared and paid
between 2010 to 2013, inclusive. During October 2020, Barrick TZ
Limited filed a motion for the Court of Appeal to review this decision
with written submissions following in December 2020. No date has
been set for the Court of Appeal to review its decision.
Further TRA assessments were issued to Acacia in January 2016
in the amount of $500.7 million, based on an allegation that Acacia
was resident in Tanzania for corporate and dividend withholding tax
purposes. The corporate tax assessments were levied on certain of
Acacia’s net profits before tax. Acacia appealed these assessments at
the TRA Board level.
In addition, the TRA issued adjusted tax assessments totaling
approximately $190 billion for alleged unpaid taxes, interest and
penalties, apparently issued in respect of alleged and disputed under-
declared export revenues as described under “Tanzania – Concentrate
Export Ban and Related Disputes” above.
On October 20, 2019, Barrick announced that it had reached a
Framework Agreement with the GoT to settle all disputes between the
GoT and the mining companies formerly operated by Acacia but now
managed by Barrick effective as of January 1, 2020. For details on
the terms of the Framework Agreement, see “Tanzania – Concentrate
Export Ban and Related Disputes” above.
All of the tax disputes with the TRA were considered resolved as
part of the Framework Agreement with the GoT. In furtherance of this
settlement, compromise and release agreements were executed by
the parties to each of the tax disputes. These agreements were filed
and adopted by the relevant courts in Tanzania for the full and final
settlement of the tax disputes.
In light of the resolution of all pending disputes, in October
2022 Barrick took steps to formally withdraw from the international
arbitration, which had been initiated by the former Acacia in 2017, and
bring those proceedings to an end. The arbitration proceedings were
formally terminated on November 29, 2022.
North Mara – Ontario Litigation
On November 23, 2022, an action was commenced against the
Company in the Ontario Superior Court of Justice in respect of
alleged security-related incidents in the vicinity of the North Mara
Mine in Tanzania. The named plaintiffs purport to have been injured,
or to be the dependents of individuals who were allegedly killed, by
members of the Tanzanian Police Force. The Statement of Claim
asserts that Barrick Gold Corporation is legally responsible for the
actions of the Tanzanian Police Force, and that the Company is liable
for an unspecified amount of damages. The Company believes that the
allegations are without merit, including because the Tanzanian Police
Force is a sovereign police force that operates under its own chain
of command. The Company intends to defend its interests vigorously
and is currently considering its options and next steps in the litigation.
No amounts have been recorded for any potential liability
arising from this matter, as the Company cannot reasonably predict
the outcome.
Zaldívar Chilean Tax Assessment
On August 28, 2019, Barrick’s Chilean subsidiary that holds the
Company’s interest in the Zaldívar mine, Compañía Minera Zaldívar
Limitada (“CMZ”), received notice of a tax assessment from the
Chilean Internal Revenue Service (“Chilean IRS”) amounting to
approximately $1 billion in outstanding taxes, including interest and
penalties (the “2015 Tax Assessment”). The 2015 Tax Assessment
primarily claims that CMZ improperly claimed a deduction relating to a
loss on an intercompany transaction prior to recognizing and offsetting
a capital gain on the sale of a 50% interest by CMZ in the Zaldívar
mine to Antofagasta in 2015. CMZ filed an administrative appeal with
the Chilean IRS on October 14, 2019. Following initial meetings with
CMZ, the Chilean IRS agreed on certain aspects with CMZ’s position
and reduced the Assessment to $678 million (including interest and
penalties as at December 31, 2021) which was mainly referring to
the deduction related to the intercompany transaction mentioned
above. CMZ continued discussions with the Chilean IRS prior to the
authority’s final decision.
On March 17, 2020, CMZ filed a claim against the Chilean IRS at
the Tax Court of Coquimbo (the “Tax Court”) to nullify the 2015 Tax
Assessment. The Chilean IRS filed their response to CMZ’s claim on
April 13, 2020.
In April 2020, the Chilean IRS initiated an audit of CMZ for 2016
relating to the same claims included in the 2015 Tax Assessment. This
audit resulted in a new tax assessment against CMZ (the “2016 Tax
Assessment”). On September 9, 2020, CMZ filed a claim at the Tax
Court to nullify the 2016 Tax Assessment and the Chilean IRS filed its
response on October 7, 2020.
On September 29, 2020, the Tax Court approved CMZ’s request
to consolidate its challenges to the 2015 and 2016 Tax Assessments
(collectively, the “Zaldívar Tax Assessments”) in a single proceeding.
On December 30, 2022, the Tax Court issued its decision,
dismissing CMZ’s claims and upholding the Zaldívar Tax Assessments
as issued by the Chilean IRS. Accordingly, as of December 31, 2022,
CMZ’s exposure, including applicable interest and penalties, amounts
to approximately $824 million. On January 20, 2023, CMZ filed an
appeal against the Tax Court’s decision, which will be heard by the
Court of Appeals of La Serena.
The Company continues to believe that the Zaldívar Tax
Assessments are without merit and intends to continue to vigorously
defend its position.
No amounts have been recorded for any potential liability arising
from the Zaldívar Tax Assessments as the Company cannot reasonably
predict the outcome.
214
Annual Report 2022 | Barrick Gold CorporationNOTES TO CONSOLIDATED FINANCIAL STATEMENTS Kibali Customs Dispute
At the end of January and in early February 2022, Kibali Goldmines
SA, which owns and operates the Kibali gold mine in the Democratic
Republic of Congo, received fifteen claims from the Direction Générale
des Douanes et Accises (“Customs Authority”) concerning customs
duties. The Customs Authority claims that incorrect import duty
tariffs have been applied to the importation of certain consumables
and equipment for the Kibali gold mine. In addition, they claim that
the exemption available to Kibali Goldmines SA, which was granted
in relation to the original mining lease, no longer applies. Finally, the
Customs Authority claims that a service fee paid on the exportation of
gold was paid to the wrong government body. The claims, including
substantial penalties and interest, total $339 million.
The Company has examined the Customs Authority claims and,
except for certain immaterial items for which a provision has already
been made, the Company has concluded that they are without merit,
as they seek to challenge established customs practices which have
been accepted by the Customs Authority for many years and, where
relevant, are in line with ministerial instruction letters.
The Company is engaged in discussions with the Customs
Authority and Ministry of Finance regarding the customs claims. A
formal reassessment notice has not yet been issued by the Customs
Authority with respect to these claims.
The Company will vigorously defend its position that the Customs
Authority claims are unfounded, and no additional amounts have been
recorded for any potential liability arising from these claims as the
Company cannot reasonably predict the outcome.
Zaldívar Water Claims
On March 30, 2022, the State Defense Council (“CDE”), an entity
that represents the interests of the Chilean state, filed a lawsuit in
the Environmental Court of Antofagasta against Compañía Minera
Zaldívar SpA (“CMZ SpA”), the joint venture company that operates
the Zaldívar mine, and two other companies with mining operations
that utilize water from a shared aquifer (Minera Escondida Ltda. and
Albermarle Ltda.). The CDE claims that the extraction of groundwater
by these companies since 2005 has caused environmental damage
to the surrounding area. The CDE’s lawsuit seeks to require the
companies to conduct a series of studies and undertake certain
actions to protect and repair the alleged environmental damage in the
area, and also to cease extracting water from the aquifer.
CMZ SpA presented its defense on June 15, 2022. On July 26,
2022, the Court issued an order governing the evidentiary stage of
the trial. Following an agreed suspension from July through November
2022, the proceeding resumed. On January 30, 2023, a conciliation
hearing was held to address a potential settlement proposal by
Albermarle Ltda. As of that hearing date, the proceedings have been
stayed for a further 60-day period to allow settlement discussions to
continue among the parties. If a definitive settlement is not reached
within the stay period, the court is expected to schedule an evidentiary
hearing and the case will proceed against the remaining parties.
The Company intends to continue to vigorously defend its position.
No amounts have been recorded for any potential liability under this
matter, as the Company cannot reasonably predict the outcome.
215
Barrick Gold Corporation | Annual Report 2022NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
Shares are traded on two stock exchanges
2022 DIVIDEND PER SHARE
US$0.65 (paid in respect of the 2022 financial year)
New York
Toronto
TICKER SYMBOL
NYSE: GOLD
TSX: ABX
NUMBER OF REGISTERED SHAREHOLDERS AT
DECEMBER 31, 2022
15,578
CLOSING PRICE OF SHARES
COMMON SHARES
(millions)
Outstanding at December 31, 2022
Weighted average in 2022
Basic
Fully diluted
1,755
1,771
1,771
The Company’s shares were split on a two-for-one basis in 1987, 1989
and 1993.
VOLUME OF SHARES TRADED
US$17.18
C$23.21
(millions)
NYSE
TSX
2022
5,341
1,643
2021
4,395
956
Share Volume
(millions)
2022
1,444
1,156
1.417
1,324
5,341
2021
1,231
1,027
1,041
1,096
4,395
Share Volume
(millions)
2022
301
315
542
485
1,643
2021
299
255
190
212
956
High
2022
US$26.07
25.99
18.18
17.93
2021
US$24.95
25.37
22.30
21.19
Low
2022
US$17.93
17.64
13.97
13.01
2021
US$18.64
19.94
17.56
17.27
High
Low
2022
2021
2022
2021
C$33.50
C$31.85
C$22.75
C$23.63
32.78
23.81
24.06
30.65
27.97
26.66
22.70
19.02
17.88
25.08
22.30
22.33
December 31, 2022
NYSE
TSX
SHARE TRADING INFORMATION
New York Stock Exchange
Quarter
First
Second
Third
Fourth
Toronto Stock Exchange
Quarter
First
Second
Third
Fourth
216
Annual Report 2022 | Barrick Gold Corporation SHAREHOLDER INFORMATION
PERFORMANCE DIVIDEND POLICY
At the February 15, 2022 meeting, the Board of Directors approved a
performance dividend policy that enhances the return to shareholders
when the Company’s liquidity is strong. In addition to our base
dividend, the amount of the performance dividend on a quarterly basis
is based on the amount of cash, net of debt, on our consolidated
balance sheet at the end of each quarter as per the schedule below.
This performance dividend calculation commenced after our March 31,
2022 consolidated balance sheet, with payment in the second quarter
of 2022.
Performance
Dividend
Level
Level I
Level II
Level III
Level IV
Threshold
Level
Net cash
<$0
Net cash
>$0 and
<$0.5B
Net cash
>$0.5B
and <$1B
Net cash
>$1B
Quarterly
Base
Dividend
$0.10
per share
$0.10
per share
Quarterly
Performance
Dividend
Quarterly
Total
Dividend
$0.00
per share
$0.05
per share
$0.10
per share
$0.15
per share
$0.10
per share
$0.10
per share
$0.20
per share
$0.10
per share
$0.15
per share
$0.25
per share
The declaration and payment of dividends is at the discretion of the
Board of Directors, and will depend on the company’s financial results,
cash requirements, future prospects, the number of outstanding
common shares, and other factors deemed relevant by the Board.
DIVIDEND PAYMENTS
In 2021, Barrick paid an aggregate cash dividend of $0.36 per common
share – $0.09 on March 15, $0.09 on June 15, $0.09 on September 15
and $0.09 on December 15.
In 2022, Barrick paid an aggregate cash dividend of $0.65 per
common share – $0.10 on March 15; $0.20 on June 15 (including
a $0.10 per share performance dividend), $0.20 on September 15
(including a $0.10 per share performance dividend); and $0.15 on
December 15 (including a $0.05 per share performance dividend).
SHARE BUYBACK PROGRAM
At its February 15, 2022 meeting, the Board of Directors authorized
a share buyback program for the repurchase of up to $1.0 billion
of the Company’s outstanding common shares over the subsequent
12 months. Barrick repurchased $424 million of shares in 2022 under
this program. As a result, a total of $1.6 billion of cash was returned
to shareholders through dividends and share buybacks during 2022,
exceeding the record $1.4 billion of distributions made in 2021.
FORM 40-F
The Company’s Annual Report on Form 40-F is filed with the
United States Securities and Exchange Commission. This report is
available on Barrick’s website www.barrick.com and will be made
available to shareholders, without charge, upon written request to the
Secretary of the Company at the Head Office at corporatesecretary@
barrick.com or at 416-861-9911.
SHAREHOLDER CONTACTS
Shareholders are welcome to contact the Investor Relations Department
for general information on the Company at investor@barrick.com or
at 416-861-9911.
For more information on such matters as share transfers, dividend
cheques and change of address, inquiries should be directed to the
Company’s Transfer Agents.
TRANSFER AGENTS AND REGISTRARS
TSX Trust Company
301 – 100 Adelaide Street West,
Toronto, Ontario, Canada M5H 4H1
or
American Stock Transfer & Trust Company, LLC
6201 – 15 Avenue
Brooklyn, New York 11219, USA
Telephone: 1-800-387-0825
Toll-free throughout North America
Fax: 1-888-249-6189
Email: shareholderinquiries@tmx.com
Website: www.tsxtrust.com
AUDITORS
PricewaterhouseCoopers LLP
Toronto, Canada
ANNUAL MEETING
The Annual Meeting of Shareholders will be held on
Tuesday, May 2, 2023 at 10:00 am (Toronto time).
Please visit www.barrick.com/investors/AGM for meeting details.
217
Barrick Gold Corporation | Annual Report 2022 CAUTIONARY STATEMENT ON
FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in this
Annual Report 2022, including any information as to our strategy,
projects, 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 “believe”,
“expect”, “anticipated”, “vision”, “aim”, “strategy”, “target”, “plan”,
“opportunities”, “guidance”, “forecast”, “outlook”, “objective”,
“intend”, “project”, “pursue”, “goal”, “continue”, “committed”,
“budget”, “estimate”, “potential”, “prospective”, “future”, “focus”,
“ongoing”, “following”, “subject to”, “scheduled”, “may”, “will”, “can”,
“could”, “would”, “should” and similar expressions identify forward-
looking statements. In particular, this Annual Report 2022 contains
forward-looking statements including, without limitation, with respect
to: Barrick’s forward-looking production guidance; estimates of future
cost of sales per ounce for gold and per pound for copper, total cash
costs per ounce and C1 cash costs per pound, and all-in-sustaining
costs per ounce/pound; cash flow forecasts; projected capital,
operating and exploration expenditures; the share buyback program
and performance dividend policy, including the criteria for dividend
payments; mine life and production rates; projected capital estimates
and anticipated permitting timelines related to the Goldrush Project,
as well as opportunities for development in the Redhill mining zone
during the permitting process; the planned updating of the historical
Reko Diq feasibility study and targeted first production; our plans and
expected completion and benefits of our growth projects, including
the Goldrush Project, Pueblo Viejo plant expansion and mine life
extension project, including approval of the final location of the
additional TSF for Pueblo Viejo following submission of the ESIA in
the Dominican Republic and changes to the estimated capital cost
of that facility following the completion of pre-feasibility engineering,
proposed Lumwana Super Pit Expansion, new mobile equipment fleet
at Lumwana, and Veladero Phase 7 leach pad and power transmission
line projects, solar power projects at NGM and Loulo-Gounkoto, the
completion of final construction activities for the Turquoise Ridge Third
Shaft, and the Jabal Sayid Lode 1 project; the potential development
of a super pit at Lumwana; capital expenditures related to upgrades
and ongoing management initiatives; Barrick’s global exploration
strategy and planned exploration activities; the timeline for execution
and effectiveness of definitive agreements to implement the binding
Commencement Agreement between PNG and BNL and the timeline
for resolution of outstanding tax audits with PNG’s IRC; the duration of
the temporary suspension of operations at Porgera, the conditions for
the reopening of the mine and the timeline to recommence operations;
our pipeline of high confidence projects at or near existing operations;
potential mineralization and metal or mineral recoveries; our ability to
convert resources into reserves and future reserve replacement; asset
sales, joint ventures and partnerships; Barrick’s strategy, plans, targets
and goals in respect of environmental and social governance issues,
including climate change, greenhouse gas emissions reduction targets
(including with respect to our Scope 3 emissions), TSF management,
responsible water use, biodiversity and human rights initiatives;
Barrick’s engagement with local communities to manage the Covid-19
pandemic; and expectations regarding future price assumptions,
financial performance and other outlook or guidance.
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 Annual
Report 2022 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. 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); risks associated with projects in the early stages of
evaluation and for which additional engineering and other analysis is
required; risks related to the possibility that future exploration results
will not be consistent with the Company’s expectations, that quantities
or grades of reserves will be diminished, and that resources may not
be converted to reserves; risks associated with the fact that certain
of the initiatives described in this Annual Report 2022 are still in the
early stages and may not materialize; changes in mineral production
performance, exploitation and exploration successes; 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; the speculative nature of mineral exploration and
development; lack of certainty with respect to foreign legal systems,
corruption and other factors that are inconsistent with the rule of
law; changes in national and local government legislation, taxation,
controls or regulations and/or changes in the administration of laws,
policies and practices; the potential impact of proposed changes to
Chilean law on the status of value added tax refunds received in Chile
in connection with the development of the Pascua-Lama project;
expropriation or nationalization of property and political or economic
developments in Canada, the United States or other countries in which
Barrick does or may carry on business in the future; risks relating
to political instability in certain of the jurisdictions in which Barrick
operates; timing of receipt of, or failure to comply with, necessary
permits and approvals, including the issuance of a ROD for the
Goldrush Project and/or whether the Goldrush Project will be permitted
to advance as currently designed under its Feasibility Study, approval
of the final location of the additional TSF for Pueblo Viejo following
submission of the ESIA in the Dominican Republic, and permitting
activities required to optimize Long Canyon’s life of mine; non-renewal
of key licenses by governmental authorities, including the new SML for
Porgera; failure to comply with environmental and health and safety
laws and regulations; contests over title to properties, particularly title
to undeveloped properties, or over access to water, power and other
required infrastructure; the liability associated with risks and hazards in
the mining industry, and the ability to maintain insurance to cover such
losses; increased costs and physical risks, including extreme weather
events and resource shortages, related to climate change; damage to
the Company’s reputation due to the actual or perceived occurrence
of any number of events, including negative publicity with respect to
218
Annual Report 2022 | Barrick Gold Corporation CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
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 Annual Report 2022 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 Annual Report 2022. We disclaim 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.
the Company’s handling of environmental matters or dealings with
community groups, whether true or not; risks related to operations near
communities that may regard Barrick’s operations as being detrimental
to them; litigation and legal and administrative proceedings; 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; increased
costs, delays, suspensions and technical challenges associated with
the construction of capital projects; risks associated with working with
partners in jointly controlled assets; risks related to 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; risk of loss due to acts of war, terrorism,
sabotage and civil disturbances; risks associated with artisanal and
illegal mining; risks associated with Barrick’s infrastructure, information
technology systems and the implementation of Barrick’s technological
initiatives; 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; the impact of inflation, including global
inflationary pressures driven by supply chain disruptions caused by
the ongoing Covid-19 pandemic and global energy cost increases
following the invasion of Ukraine by Russia; adverse changes in our
credit ratings; fluctuations in the currency markets; changes in U.S.
dollar interest rates; risks arising from holding derivative instruments
(such as credit risk, market liquidity risk and mark-to-market risk);
risks related to the demands placed on the Company’s management,
the ability of management to implement its business strategy and
enhanced political risk in certain jurisdictions; uncertainty as to
whether some or all of Barrick's targeted investments and projects will
meet the Company’s capital allocation objectives and internal hurdle
rate; whether benefits expected from recent transactions are realized;
business opportunities that may be presented to, or pursued by, the
Company; our ability to successfully integrate acquisitions or complete
divestitures; risks related to competition in the mining industry;
employee relations including loss of key employees; availability
and increased costs associated with mining inputs and labor; risks
associated with diseases, epidemics and pandemics, including
the effects and potential effects of the global Covid-19 pandemic;
risks related to the failure of internal controls; and risks related to
the impairment of the Company’s goodwill and assets. Barrick also
cautions that its 2023 guidance may be impacted by the ongoing
business and social disruption caused by the spread of Covid-19.
219
Barrick Gold Corporation | Annual Report 2022 Donlin (50%)
NEW FRONTIERS AND
NEW OPPORTUNITIES
Nevada Gold Mines (61.5%)
Carlin
Cortez (including Goldrush)
Turquoise Ridge
Phoenix
Long Canyon
CANADA
Golden Sunlight 2
Hemlo (100%)
USA
Corporate offi ce, Toronto
A world-class business has to have a worldwide
presence. In Barrick’s hunt for new discoveries
with Tier One potential, it is steadily expanding a
global footprint which already covers 19 countries
on four continents. At the same time, further
exploration of the existing base is delivering major
growth prospects.
Fourmile (100%)
Pueblo Viejo (60%)
DOMINICAN REPUBLIC
GUYANA
SURINAME
Pierina
PERU
Norte Abierto (50%)
Pascua-Lama (100%)
Alturas (100%)
Zaldívar (50%)
Veladero (50%)
Tier Onei gold mines
Other gold mines
Copper mines
Pipeline projects
In closure
CHILE
ARGENTINA
1
2
In April 2020, Porgera was placed on care and maintenance. Porgera interest of 24.5% refl ects Barrick’s expected ownership interest following the
implementation of the binding February 3, 2022 Commencement Agreement.
Golden Sunlight is currently reprocessing tailings that produce a sulphur concentrate as fuel for the refractory processing facilities at Nevada Gold Mines.
Jabal Sayid (50%)
Tongon (89.7%)
EGYPT
Reko Diq (50%)
SAUDI
ARABIA
Balochistan,
PAKISTAN
JAPAN
SENEGAL
MALI
CÔTE
D’IVOIRE
DRC
Loulo-Gounkoto (80%)
ZAMBIA
Kibali (45%)
TANZANIA
North Mara (84%)
Bulyanhulu (84%)
Buzwagi
Lumwana (100%)
Porgera (24.5%)1
PAPUA
NEW GUINEA
NORTH AMERICA
LATIN AMERICA AND ASIA PACIFIC
AFRICA AND MIDDLE EAST
Goldrush portal
Pueblo Viejo plant
Loulo pit
Nevada, USA
At Robertson, a maiden proven and
probable reserve of 1.6 million ounces1,i
was declared with further expansion
potential between existing deposits
and along strike. Robertson is a key
source of oxide mill feed in the long-
term mineplan for the Cortez Complex.
Nevada, USA
The Carlin Complex’s North Leeville
inferred resource has grown to 1 million
ounces1,i, clearly demonstrating
this
target’s multi-million ounce potential.
Nevada, USA
The growth potential of Barrick’s
100%-owned high-grade Fourmile asset
has significantly increased with the new
Dorothy discovery confirming significant
upside along the corridor to the multi-
million ounce Goldrush project.
USA
Barrick extends its gold and copper
exploration focus beyond Nevada Gold
Mines .
Canada
A new pushback in the Hemlo open
pit contributed to reserve growth in
2022, which is expected to improve mill
productivity and flexibility in the mineplan.
Dominican Republic
The plant expansion and mine life
extension project at Pueblo Viejo
continues
the
significant growth in reserves has
life to
extended the operation’s
2040 and beyondv.
to advance and
Argentina
Geological work in the Veladero
district is focusing on targets with
the potential to add to the mine’s
life. Barrick is also evaluating the
significant remaining targets in the
prospective El Indio belt.
1 On a 100% basis
7818-DPA-Barrick Annual Report 2022_Cover_Print.indd 5-8
Japan
The group’s strategic alliance with Japan
Gold, which holds the largest exploration
property portfolio in Japan, has advanced
six projects to the second evaluation phase.
Democratic Republic of Congo
Kibali’s KZ Zone continues to reveal exciting
exploration potential. Multiple open-pit and
underground targets are being progressed
through the resource triangle.
Zambia
The pre-feasibility study for a Super Pit
and mill expansion at Lumwana is well
under way, which has the potential to
extend the mine’s life beyond 2080.
Pakistan
First production from the Reko Diq project –
one of the largest undeveloped copper-gold
deposits in the world and a potential Tier One
asset in the making – is targeted for 2028.
Papua New Guinea
Porgera continues
towards
restarting under its new ownership structure
for the benefit of all stakeholders.
its progress
Mali
The Loulo District remains one of Barrick’s
most successful hunting grounds with
significant discovery potential, including
a 26km-long highly-prospective trend in
the Bambadji permit.
Tanzania
Mining is scheduled to start at the new
Gena open pit in the first quarter of 2023,
while the new underground fleet at both
North Mara and Bulyanhulu continues to
deliver on its ramp-up plans.
Egypt
Barrick now holds a 1,675km2 land package
where fi eld teams are actively screening for
mineralized systems, and aim to carry out
maiden drill programs in 2023.
Saudi Arabia
Work is under way to develop a new target
less than one kilometre from the existing lode at
Jabal Sayid, while exploration results continue
to confi rm the discovery potential across the
mine. Barrick is also expanding its exploration
joint venture with Ma’aden at new greenfi elds
projects, including Umm Ad Damar.
Printed on paper made from wood fi bre from well-managed forests,
a fully renewable and sustainable resource, including 10% recycled fi bre.
2023/03/15 10:35
INVESTMENT IN GROWTH
OPENS NEW OPPORTUNITIES
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BARRICK GOLD CORPORATION
Corporate Office:
TD Canada Trust Tower
161 Bay Street, Suite 3700
Toronto, Canada M5J 2S1
Tel: +1 416 861-9911
Toll-free throughout North America:
1 800 720-7415
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ANNUAL REPORT 2022
CLEAR STRATEGY DRIVES
VALUE CREATION
CUMULATIVE OPERATING CASH FLOW
$ million
17,500
15,000
12,500
10,000
7,500
5,000
2,500
0
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
CUMULATIVE FREE CASH FLOWi
$ million
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
DEBT, NET OF CASH
$ million
4,000
3,000
2,000
1,000
0
-1,000
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
CUMULATIVE DIVIDENDS PER SHARE1
$ cents
160
140
120
100
80
60
40
20
0
9
1
0
2
1
Q
9
1
0
2
2
Q
9
1
0
2
3
Q
9
1
0
2
4
Q
0
2
0
2
1
Q
0
2
0
2
2
Q
0
2
0
2
3
Q
0
2
0
2
4
Q
1
2
0
2
1
Q
1
2
0
2
2
Q
1
2
0
2
3
Q
1
2
0
2
4
Q
2
2
0
2
1
Q
2
2
0
2
2
Q
2
2
0
2
3
Q
2
2
0
2
4
Q
1
Dividend declared per share in respect of stated period.
Barrick’s foundational
strategy was
to
combine the best
people with the best
assets to produce
the best returns.
On ever y metric it
is delivering a sector-
leading performance.
In 2022, dividends
and share buybacks
earned shareholders a
pay-out of $1.6 billion,
topping the previous
year’s record.
7818-DPA-Barrick Annual Report 2022_Cover_Print.indd 1-4
2023/03/15 10:35