Barrick Continues to be a Major Value Creator for Mali

Rhea-AI Summary

Barrick Gold Corporation has been a valuable partner to Mali for 27 years, contributing almost $10 billion to the Malian economy and accounting for 5-10% of Mali's GDP over the past 10 years. The company has developed a world-class local skill base and its flagship Loulo-Gounkoto complex is managed by an entirely Malian team. The complex ranks among the world’s largest gold producers and continues to identify new high-priority targets for future discoveries. Barrick is also committed to increasing its use of renewable energy sources and has completed community development projects in Mali.

Insights

Market Research Analyst

The announcement from Barrick Gold Corporation highlights their sustained contribution to Mali's economy and the ongoing success of the Loulo-Gounkoto mining complex. From a market research perspective, the reference to the complex as a Tier One mining asset is particularly significant. This classification indicates a high level of productivity and efficiency, with the potential for a reserve of $1,300/oz, a minimum 10-year life and annual production surpassing 500,000 ounces of gold at competitive costs.

Investors may view the news of successful brownfields drilling and the identification of new high-priority targets positively, as these developments suggest a stable or increasing reserve replacement rate. This is crucial for the long-term sustainability of the mining operations and, by extension, Barrick's financial health. Moreover, the move towards renewable energy with the solar farm extension and battery energy storage system aligns with global environmental trends and could enhance the company's reputation and reduce operational costs over time.

Financial Analyst

Given that the mines have contributed between 5% to 10% of Mali's GDP over the past decade, the financial implications for both Barrick and the Malian economy are substantial. The fact that the state has received more than 70% of the economic benefits generated by Loulo-Gounkoto underscores the strategic importance of the mining operations to the region. This level of contribution to local economies can be a double-edged sword; while it presents a strong case for government support and favorable relations, it also indicates potential vulnerability to local political and economic instability.

For shareholders and potential investors, the reported $10 billion contribution to the Malian economy in various forms suggests robust revenue streams. However, the reliance on a single complex for a substantial portion of Barrick's bottom line could be a concern if geopolitical or operational issues arise. Diversification of assets and geographical spread are key factors in mitigating such risks.

Sustainability Expert

The commissioning of the solar farm extension and the new battery energy storage system at the Loulo-Gounkoto complex indicates Barrick Gold Corporation's commitment to sustainability and reducing its carbon footprint. This is increasingly important to socially responsible investors who consider environmental impact in their investment decisions. The transition to renewable energy not only supports the company's social license to operate but may also result in long-term cost savings, as renewable energy sources can be more cost-effective than traditional fossil fuels.

Furthermore, the completion of a community water distribution system serving 13,000 people demonstrates Barrick's investment in community development, which can help to secure and maintain the social license to operate. Such community engagement initiatives can be critical in regions where mining activities have significant environmental and social impacts, helping to mitigate opposition and foster a positive operating environment.

All amounts expressed in US dollars

LOULO, Mali, Jan. 27, 2024 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) and its predecessor, Randgold Resources, has been a valuable partner to Mali for 27 years and, in the face of many challenges, continues to work tirelessly with the Transition Government of Mali and local stakeholders to plot a new course for the country’s mining industry and promote it as an investment destination, says president and chief executive Mark Bristow.

Speaking to media here today, Bristow said during this time its mines had contributed almost $10 billion to the Malian economy in the form of taxes, royalties, salaries and payments to local suppliers. Over the past 10 years, they have accounted for between 5% and 10% of Mali’s GDP and over Loulo-Gounkoto’s life the state has received more than 70% of the economic benefits it generated. Barrick has also developed a world-class local skill base, evidenced by the fact that its flagship Loulo-Gounkoto complex is managed by an entirely Malian team.

As a Tier One¹ mining complex, Loulo-Gounkoto ranks among the world’s largest gold producers, and its consistently strong performance makes it a major contributor to Barrick’s bottom line. This year successful brownfields drilling again more than replaced the reserves depleted by mining while continuing exploration has identified new high-priority targets with the potential to deliver the Loulo district’s next generation of world-class discoveries.

During the past quarter Loulo’s solar farm extension to 60 megawatts and its new battery energy storage system were commissioned, in line with Barrick’s global commitment to increasing its use of renewable energy sources. Its community development projects included the completion of a water distribution system which will serve 13,000 people in the Kunda village.

Enquiries
Investor and Media Relations
Kathy du Plessis
+44 20 7557 7738
Email: barrick@dpapr.com

Group Regional Manager, West Africa
Mahamadou Samaké
+223 66 75 61 36

West Africa and Saudi Arabia Operations Manager
Chiaka Berthe
+223 66 74 75 88

Website: www.barrick.com

Endnote

1. A Tier One Gold Asset is an asset with a $1,300/oz reserve potential to deliver a minimum 10-year life, annual production of at least 500,000 ounces of gold and with all in sustaining costs per ounce in the lower half of the industry cost curve.
   
   

Cautionary Statement on Forward-Looking Information

Certain information contained or incorporated by reference in this press release, 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 “sustains”, “discoveries”, “maintain”, “on track”, “opportunities”, “guidance”, “recognize”, “develop”, “commitment”, “deliver”, “target”, “potential”, “remain”, “can”, “will”, and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to Loulo-Gounkoto’s ability to achieve its production guidance for 2023 and maintain its production profile; Loulo Gounkoto’s productive partnership with the government of Mali; the Complex’s potential to continue to make major contributions to the country’s economy and mining industry while developing the skills of its in-country workforce; Loulo-Gounkoto’s ability to continue to replace mineral reserves net of depletion; Barrick’s exploration strategy and the potential to find new discoveries and growth opportunities in the Loulo region; Barrick’s strategy, plans, targets and goals in respect of environmental and social governance issues, including with respect to greenhouse gas emissions reductions and safety and health; and investments to support community projects, local procurement, employment, education and development programs in Mali.

Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known 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 diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; changes in national and local government legislation, taxation, controls or regulations and/ or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in the Mali and other jurisdictions in which the Company or its affiliates do or may carry on business in the future; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic; litigation and legal and administrative proceedings; employee relations including loss of key employees; increased costs and physical and transition risks related to climate change, including extreme weather events, resource shortages, emerging policies and increased regulations related to greenhouse gas emission levels, energy efficiency and reporting of risks; and availability and increased costs associated with mining inputs and labor. Barrick also cautions that its 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 press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.

Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

FAQ

How long has Barrick Gold Corporation been a partner to Mali?

Barrick Gold Corporation has been a partner to Mali for 27 years.

How much has Barrick Gold Corporation contributed to the Malian economy?

Barrick Gold Corporation has contributed almost $10 billion to the Malian economy.

What percentage of Mali's GDP has Barrick Gold Corporation accounted for over the past 10 years?

Barrick Gold Corporation has accounted for between 5-10% of Mali's GDP over the past 10 years.

What is the flagship complex managed by Barrick Gold Corporation in Mali?

The flagship complex managed by Barrick Gold Corporation in Mali is the Loulo-Gounkoto complex.

What are the key features of a Tier One Gold Asset?

A Tier One Gold Asset is an asset with a $1,300/oz reserve potential to deliver a minimum 10-year life, annual production of at least 500,000 ounces of gold, and with all in sustaining costs per ounce in the lower half of the industry cost curve.