Barrick (B) Q2 FY25 earnings call: guidance and Q&A

What are the timelines and key milestones for the Loulo-Gounkoto arbitration process?

The tribunal has been appointed, and an application for interim relief measures has been filed. Engagement continues through treaty programs, legal counsel in-country, and third-party mediation. Management believes a resolution is possible and avoids public negotiation.

“The Malian authorities have nominated their member to the tribunal as of we and we have an independent President. So it's constituted. We've already presented our first application for some interim relief measures, really focused on cautioning everyone not to damage the assets while we try and seek a solution.”

asked by Daniel Major · answered by Se-Wook Yoon

Are assets like Hemlo, Tongon, Zaldivar, and Porgera considered core to the portfolio, especially after the Donlin sale and Zaldivar permit extension?

The company is rationalizing its portfolio, noting that Hemlo was previously considered for sale and has seen investment. It's good practice to clean up the portfolio when buyers are available. Management will address other assets later.

“I reminded somebody today when in 2019, when we closed the merger with Barrick and Randgold, Hemlo was on for sale then. We invested quite a lot into Hemlo to reestablish it as an operation, a viable operation.”

asked by Daniel Major · answered by Se-Wook Yoon

Does the growing scale and grade of Fourmile change the scope or timeline of the operation?

The timeframe for a scoping position has been shortened to the end of this year. Fourmile, if integrated into Nevada Gold Mines, could replace lower-grade feed in roasters, extending life and reducing costs. Permitting in the US is manageable.

“We have shortened the time frame. So we would like to have a sort of scoping position for the project by the end of this year. We'll then decide what's the next step? Is it prefeasibility or feasibility, exactly how we take it to the next step.”

asked by Daniel Major · answered by Se-Wook Yoon

What is the balance sheet situation regarding the impairment of Loulo-Gounkoto assets?

The company deconsolidated and wrote off the assets and liabilities due to loss of control, resulting in a $1 billion pre-tax ($600 million after-tax) charge to the P&L. This was largely offset by a $750 million pre-tax ($600 million after-tax) gain from the Donlin sale.

“And so we did 2 things. We deconsolidated the assets and effectively wrote off the assets and liabilities on the balance sheet. And then we subsequently did a valuation of our investment because we still own 80% of that asset, we can still expect to get the benefits from our investment in that asset.”

asked by Unknown Analyst · answered by Graham Shuttleworth

What is the sequential outlook for H2 FY25, specifically regarding Pueblo Viejo recoveries (targeting 85% in Q4?) and Nevada Gold Mines cost trajectory?

Pueblo Viejo's focus is on throughput, with blending of high-grade stockpiles. Updates on recoveries will be provided. Nevada Gold Mines' costs are expected to improve in H2 due to major maintenance being completed. Overall, H2 is expected to be stronger with higher volumes and lower costs.

“So as -- if you do the math, Matthew, there's an improvement in production across the group and particularly at Nevada Gold Mines. And right now, if you adjust for the increase in gold price, we're guiding that we'll get there, certainly on a group basis out to the back end of the year.”

asked by Matthew Murphy · answered by Se-Wook Yoon

Could you provide an update on the stockpile tonnage and grades at Pueblo Viejo?

The stockpiles at Pueblo Viejo are approximately 97 million tonnes at 2.45 grams per tonne, with some portions running as high as 2.7 grams per tonne.

“Yes. So we've about 97 million tonnes at 2.45 grams a tonne, so portions of that stockpile will run as high as 2.7 grams, so.”

asked by Anita Soni · answered by Unknown Executive

Is the interpretation of Fourmile's significantly larger footprint and higher grade correct, and are the initial PEA economic criteria still applicable?

Confirmed the potential for a larger footprint and higher grades, with new results continuously coming in. The initial PEA was based on earlier drilling. The continuity of the orebody is proving better than expected. A scoping study by year-end will clarify the economics.

“The preliminary numbers were based on the drilling up to that stage. As you can see in the black dots are the boreholes we finished, the yellow dots are ones that are still going to be drilled. But the -- there's some significant numbers that still have to come out of this orebody that and our correction, the yellow ones are the ones we're drilling in 2025.”

asked by Joshua Wolfson · answered by Se-Wook Yoon

How will Barrick allocate cash going forward, especially considering buybacks and the Donlin sale, and how important are buybacks?

Barrick is committed to its $1 billion buyback strategy, with $411 million executed year-to-date. Buybacks are important due to undervalued shares. The performance dividend and buybacks provide flexibility. Lumwana's capital is self-funded this year, reducing overall capex, and future growth is expected to be funded internally.

“So I think we're on track to -- we are committed to that $1 billion buyback strategy where the year-to-date at $411 million. And so that's the way we will manage it.”

asked by Joshua Wolfson · answered by Se-Wook Yoon