Porgera Remains On Track Despite Mulitaka Landslide Challenges
Barrick Gold (NYSE:GOLD)(TSX:ABX) reports that the Porgera Gold Mine in Papua New Guinea has exceeded production targets since resuming operations in December, despite challenges from the Mulitaka landslide. Gold production for H1 2024 was above guidance, with lower all-in sustaining costs. The company has been actively involved in disaster relief efforts, contributing $1 million jointly with JV-partner Zijin. Porgera currently employs 2,500 people, with 57% from Porgera and Enga. The mine achieved its throughput performance test in June, four months ahead of schedule. However, Barrick CEO Mark Bristow identified lack of law and order as the greatest threat to the mine's continued operation and profitability.
Barrick Gold (NYSE:GOLD)(TSX:ABX) riporta che la miniera d'oro di Porgera in Papua Nuova Guinea ha superato gli obiettivi di produzione da quando ha ripreso le operazioni a dicembre, nonostante le sfide causate dalla frana di Mulitaka. La produzione d'oro per il primo semestre del 2024 è stata superiore alle previsioni, con costi sostenibili complessivi inferiori. L'azienda è stata attivamente coinvolta negli sforzi di soccorso in caso di calamità, contribuendo con 1 milione di dollari insieme al partner JV Zijin. Porgera attualmente impiega 2.500 persone, di cui il 57% provenienti da Porgera e Enga. La miniera ha superato il test di performance di throughput a giugno, con quattro mesi di anticipo rispetto al programma. Tuttavia, il CEO di Barrick, Mark Bristow, ha identificato la mancanza di legge e ordine come la più grande minaccia alla continuazione delle operazioni e alla redditività della miniera.
Barrick Gold (NYSE:GOLD)(TSX:ABX) informa que la mina de oro de Porgera en Papúa Nueva Guinea ha superado los objetivos de producción desde que reanudó operaciones en diciembre, a pesar de los desafíos por el deslizamiento de tierra de Mulitaka. La producción de oro para la primera mitad de 2024 fue superior a lo previsto, con costos sostenibles totales más bajos. La empresa ha estado activamente involucrada en esfuerzos de ayuda por desastres, contribuyendo con 1 millón de dólares junto con su socio JV, Zijin. Porgera emplea actualmente a 2,500 personas, con un 57% provenientes de Porgera y Enga. La mina logró su prueba de rendimiento de producción en junio, cuatro meses antes de lo programado. Sin embargo, el CEO de Barrick, Mark Bristow, identificó la falta de ley y orden como la mayor amenaza para la operación continua y la rentabilidad de la mina.
Barrick Gold (NYSE:GOLD)(TSX:ABX)는 파푸아뉴기니의 포르게라 금광이 운영재개 이후 생산 목표를 초과 달성했다고 보고했습니다. 이는 멀리타카 산사태로 인한 도전에도 불구하고 이루어진 일입니다. 2024년 상반기 금 생산은 가이던스를 초과하였으며, 지속 가능한 비용은 낮았습니다. 회사는 재난 구호 작업에 적극적으로 참여하였으며, JV 파트너인 Zijin과 함께 100만 달러를 기부했습니다. 현재 포르게라는 2,500명의 직원이 근무하고 있으며, 이 중 57%는 포르게라와 엔가 출신입니다. 이 광산은 6월에 처리 성능 테스트를 완료하였으며, 이는 예정보다 4개월 빨랐습니다. 그러나 Barrick의 CEO인 Mark Bristow는 법과 질서의 부족이 광산의 지속 운영과 수익성에 가장 큰 위협이라고 지적했습니다.
Barrick Gold (NYSE:GOLD)(TSX:ABX) fait savoir que la mine d'or de Porgera en Papouasie-Nouvelle-Guinée a dépassé les objectifs de production depuis la reprise des opérations en décembre, malgré les défis posés par le glissement de terrain de Mulitaka. La production d'or pour le premier semestre 2024 a été supérieure aux prévisions, avec des coûts globaux de maintien inférieurs. L'entreprise a été activement impliquée dans les efforts de secours en cas de catastrophe, contribuant à hauteur de 1 million de dollars en collaboration avec son partenaire JV, Zijin. Porgera emploie actuellement 2 500 personnes, dont 57 % viennent de Porgera et Enga. La mine a réussi son test de performance de rendement en juin, avec quatre mois d'avance sur le calendrier. Cependant, le PDG de Barrick, Mark Bristow, a identifié le manque de loi et d'ordre comme la plus grande menace à la poursuite des opérations et à la rentabilité de la mine.
Barrick Gold (NYSE:GOLD)(TSX:ABX) berichtet, dass die Goldmine Porgera in Papua-Neuguinea die Produktionsziele übertroffen hat, seit sie im Dezember den Betrieb wieder aufgenommen hat, trotz der Herausforderungen durch den Erdrutsch in Mulitaka. Die Goldproduktion für das erste Halbjahr 2024 lag über den Vorgaben, mit niedrigeren Gesamtkosten für nachhaltige Produktion. Das Unternehmen war aktiv an Hilfsmaßnahmen beteiligt und hat gemeinsam mit dem JV-Partner Zijin 1 Million USD beigesteuert. In Porgera sind derzeit 2.500 Mitarbeiter beschäftigt, von denen 57 % aus Porgera und Enga stammen. Die Mine erreichte ihren Durchsatzleistungstest im Juni, vier Monate früher als geplant. Der Barrick-CEO Mark Bristow identifizierte jedoch die fehlende Rechtsordnung als die größte Bedrohung für die fortdauernde Betrieb und Rentabilität der Mine.
- Gold production for H1 2024 exceeded guidance
- All-in sustaining costs trending lower
- Throughput performance test achieved 4 months ahead of schedule
- 2,500 people employed, with 57% from local areas
- Operational challenges due to Mulitaka landslide
- Lack of law and order identified as greatest threat to operations and profitability
The resumption of operations at Porgera Gold Mine, despite recent challenges, signals positive momentum for Barrick Gold Gold production exceeding guidance and lower all-in sustaining costs in the first half of 2024 indicate strong operational performance. This could potentially boost investor confidence in Barrick's ability to manage complex mining operations effectively.
The mine's swift response to the Mulitaka landslide demonstrates resilience and community engagement, which are important for maintaining social license to operate in challenging environments. The
However, investors should note potential risks:
- Ongoing negotiations for the Community Development Agreement could impact future costs and benefit distribution.
- The highlighted lack of law and order poses a significant threat to operations and profitability.
- Dependence on community cooperation for supply routes indicates vulnerability in the mine's logistics.
Overall, while Porgera's performance is encouraging, its classification as a Tier One asset suggests high expectations for future production and cost metrics. Investors should closely monitor how Barrick navigates local challenges to fully realize Porgera's potential.
Barrick's update on Porgera provides mixed signals for investors. On the positive side, exceeding production guidance and trending towards lower all-in sustaining costs in H1 2024 suggests operational efficiency and potential for strong financial performance. This could positively impact Barrick's overall revenue and profitability metrics.
However, several factors warrant careful consideration:
- The
$1 million contribution to disaster relief, while commendable, represents an unexpected expense that could marginally impact Q2 financials. - Ongoing infrastructure investments, including the temporary air bridge and pipeline, likely incur additional operational costs not initially budgeted.
- The pending Community Development Agreement negotiations may result in increased benefit-sharing commitments, potentially affecting future profit margins.
- Law and order issues highlighted as the 'greatest threat' to operations introduce a significant risk factor that could disrupt production and increase security-related expenses.
Investors should weigh these factors against Porgera's potential as a Tier One asset, which implies substantial long-term value. The mine's ability to meet performance targets ahead of schedule is encouraging, but sustained performance will be important for realizing its full economic potential.
The situation at Porgera underscores the complex geopolitical landscape Barrick navigates in Papua New Guinea. Several key points emerge:
- The swift response to the Mulitaka landslide demonstrates Barrick's ability to manage crisis situations effectively, potentially bolstering its relationship with local and national authorities.
- Ongoing negotiations for the Community Development Agreement highlight the delicate balance between corporate interests and local stakeholder expectations. The outcome will be important for maintaining social license to operate.
- The emphasis on direct payments to landowner households, bypassing intermediaries, suggests an attempt to address potential corruption or mismanagement of benefits – a common challenge in resource-rich developing nations.
- The explicit mention of law and order issues as the primary threat to operations is a red flag for investors. It indicates potential security risks that could disrupt operations and increase costs.
- The high proportion of local and national employment (
97% ) is positive for community relations but may present challenges in terms of skill availability and training requirements.
Investors should closely monitor Barrick's stakeholder management strategies and the evolving political landscape in Papua New Guinea. The company's ability to navigate these complex relationships will be critical for Porgera's long-term success and stability.
All amounts in US dollars
PORT MORESBY, Papua New Guinea, July 25, 2024 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) – Despite the operational challenges presented by the recent Mulitaka landslide, Porgera Gold Mine has met or exceeded its targets since resuming mining in December last year, with gold production for the first half of the year above guidance and all-in sustaining costs trending lower.
Barrick president and chief executive Mark Bristow, who is in the country to review New Porgera Limited’s (NPL) second quarter results, said keeping Porgera open in the wake of the landslide allowed for a swift response by the mine to the collective recovery effort while sustaining the mine’s contribution to the provincial and national economies.
“Reacting rapidly to the disaster, our teams put into operation an air bridge and a temporary pipe across the slip to be able to supply fuel and essential goods not only to the mine but to local businesses serving the tens of thousands of residents of the Porgera valley. The cooperation of the Mulitaka community is essential to keeping these lifelines open until the permanent bypass road can be completed,” Bristow said, expressing his deepest sympathies to the families and friends of victims of the landslide and reaffirming NPL’s commitment to impacted communities.
“Porgera employees have been on the ground in Mulitaka daily and are embedded at the Enga Provincial Government’s disaster relief center in Wabag to assist with all aspects of the rehabilitation effort. These include the delivery of essential goods and fuel while contributing geotechnical expertise to assist with ground stabilization and the design of the new bypass road. Barrick and JV-partner Zijin also jointly contributed
During his visit, Bristow met with Prime Minister James Marape, Enga Governor Sir Peter Ipatas and Provincial Administrator Sandis Tsaka to exchange views on the Mulitaka recovery, the New Porgera Community Development Agreement (CDA) negotiations, and other issues of common interest. It was agreed that the CDA must be consistent with the New Porgera project agreements and ensure that fair and equitable benefits reach all eligible landowners and the wider Porgeran community, as well as provincial and national stakeholders.
“NPL stands ready to pay benefits directly to landowner households, without going through middlemen, once the CDA is executed. The mine would make additional infrastructure contributions to the project footprint area through effective use of the tax credit scheme in collaboration with local and provincial authorities,” Bristow said.
NPL currently employs 2,500 people, of whom
Bristow singled out the lack of law and order as the greatest threat to the continued operation and profitability of the mine, requiring the active support of all stakeholders to ensure that Porgera could continue to deliver benefits in line with its potential as a Tier One1 asset.
Enquiries:
Investor and Media Relations
Kathy du Plessis
+44 20 7557 7738
Email: barrick@dpapr.com
Website: www.barrick.com
Endnote
- A Tier One Gold Asset is an asset with a
$1,300 /oz reserve with potential for 5 million ounces to support 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. A Tier One Copper Asset is an asset with a$3.00 /lb reserve with potential for five million tonnes or more of contained copper to support a minimum 20-year life, annual production of at least 200,000 tonnes, and with all-in sustaining costs per pound in the lower half of the industry cost curve. Tier One assets must be located in a world class geological district with potential for organic reserve growth and long-term geologically driven value addition.
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 “remain”, “on track”, “continue”, “guidance”, “target”, “potential”, “could”, “will”, and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: Barrick’s partnership with Papua New Guinea; forecasted production from the Porgera mine; the potential for Porgera to achieve Tier One status; the sharing of projected economic benefits from Porgera with Papua New Guinea stakeholders under the Community Development Agreement; and Barrick’s future plans, community investments and overall strategy in Papua New Guinea.
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 Papua New Guinea and other jurisdictions in which the Company or its affiliates do or may carry on business in the future; 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 and conflicts in the Middle East; 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. 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.
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