Barrick Mining Corp. Q4 FY2024 earnings call

Management Statement and Operational Highlights

• Highlights: EBITDA up 30%, margins grew QoQ and YTD. Adjusted net earnings per share up 50% to $1.26. Dividend maintained, $354M share buyback in Q4, total $500M YTD. Safety: 3 fatalities in 2024 but improved lagging indicators. No Class 1 environmental incidents, water use efficiency 85%. Rehabilitation: Exceeded group rehabilitation target for 2nd year.
• Regional Updates:
  • North America: Nevada key for production boost. Fourmile project in pre-feasibility study, $78M allocated for 2025. Brownfields work in Nevada, Canada drilling at Norris and Patris projects.
  • Latin America and Asia Pacific: Pueblo Viejo expansion progress, bankable feasibility study at Reko Diq complete. Veladero best production in 5 years. Exploration in Peru, Ecuador.
  • Africa and Middle East: Lumwana super pit expansion near permitting. Mali production up 8% in Q4 but gold sales down due to export restrictions. Kibali improved, North Mara and Bulyanhulu performing well. Zambia's Lumwana copper mine stellar performance.

Segment Performance

• Gold and Copper: Gold production increased 15% quarter-on-quarter, with cost of sales down 3% and total cash costs down 5%. Nevada played a key role in production boost. Copper side: Lumwana posted a quarterly production record. Group achieved production guidance for both copper and gold. Financials: Achieved highest net earnings in a decade. Operating cash flow for the quarter was up 18% to $1.4 billion, total for the year $4.5 billion. Full year free cash flow up 104% to $1.3 billion. Quarterly dividend maintained at $0.10 per share, $354 million share buyback in Q4, total $500 million YTD. Reserves: Added 12.7 million ounces of gold and 13 million tonnes of copper reserves from Lumwana and Reko Diq, gold equivalent to 73 million ounces of gold.

Guidance

• Production Growth: Target 30% growth in gold equivalent ounces by end of decade.
• Capital Spending: CapEx adjusted, majority due to Loulo. Reko Diq guidance: ~$1B for Reko Diq (Barrick's share ~$0.5B), Lumwana guidance: ~$0.6B in 2025.
• Free Cash Flow: Strong cash flow supports buybacks and dividends, net debt managed.

Risks

• Mali Issues: Production impacted by Malian government export restrictions, unjust incarceration of team members, filed for arbitration.
• Operational Risks: Safety incidents in 2024, ongoing negotiations in Mali affecting Loulo operations.
• Political Risks: Uncertainty in Mali and other regions affecting operations and investments.

Question and Answer Q: Reduction in CapEx A: Graham Shuttleworth stated the vast majority relates to Loulo, with small changes in Nevada Q: Standby costs at Loulo A: Se-Wook Yoon mentioned breakeven, reallocated operators, temporary care and maintenance Q: Pueblo Viejo costs A: Se-Wook Yoon and Graham Shuttleworth noted lower grade impacted unit costs, focus on throughput and recovery improvement Q: Reko Diq funding A: Se-Wook Yoon said lending group progress, Pakistan able to fund share, Saudi investment significance Q: Fourmile project A: Se-Wook Yoon discussed pre-feasibility study, joint venture obligation, value potential Q: Mali relocation timeline A: Se-Wook Yoon mentioned 2029 completion, ongoing consultation, government and community engagement