S&P Upgrades Barrick to BBB+ with Stable Outlook

Rhea-AI Summary

Barrick Gold Corporation (NYSE:GOLD) announced an upgrade in its long-term corporate credit rating from BBB to BBB+ by S&P Global Ratings, with a stable outlook. This upgrade is attributed to Barrick's strong financial flexibility, operational efficiency, and resilience against falling gold prices. The company's ability to generate significant free cash flows and reduce net debt has bolstered its position, alongside a robust liquidity situation with $130 million in cash and no major debt repayments until 2033. Barrick aims to execute on its strategic goals while enhancing returns to shareholders.

Positive

• Upgrade by S&P Global Ratings to BBB+ indicates strong financial health.
• Increased free cash flow and reduced net debt enhance financial flexibility.
• Strong liquidity with $130 million in cash and no significant debt repayments due until 2033.
• Record $1.4 billion cash distributions to shareholders in 2021.

Negative

• None.

All amounts expressed in US dollars

TORONTO, March 29, 2022 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today announced that S&P Global Ratings (“S&P”) has upgraded Barrick’s long-term corporate credit rating to BBB+ from BBB, with a stable outlook. This follows a similar upgrade to Baa1 by Moody’s Investors Service in October 2020.

In a news release announcing the upgrade, S&P noted that the upgrade reflects Barrick’s significant financial flexibility, their favorable view of Barrick’s operating efficiency and breadth, and their expectation that the company’s credit profile should remain highly resilient in the event of lower gold prices.

Since March 2015, when Barrick's long-term corporate debt rating was last downgraded by S&P, Barrick's credit rating has remained stable or improved including an upgrade to BBB from BBB- in March 2018.

Senior executive vice-president and chief financial officer Graham Shuttleworth said, “This upgrade by S&P reflects the continuing progress that Barrick has made in strengthening our balance sheet and the improvements that we’ve made to our operations in recent years. We have generated strong free cash flows, reduced net debt, and significantly increased returns to shareholders, including a record $1.4 billion of cash distributions in 2021 and our recently announced performance dividend policy.”

Barrick is in a strong liquidity position, with $130 million of consolidated net cash at the end of 2021, an undrawn $3.0 billion credit facility, and no significant debt repayments due until 2033, providing us with sufficient liquidity to execute on our strategic goals, he said.

Enquiries:

President and CEO
Mark Bristow
+1 647 205 7694
+44 788 071 1386

Senior EVP and CFO
Graham Shuttleworth
+1 647 262 2095
+44 779 771 1338

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

Website: www.barrick.com

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 “provide”, “should”, “remain”, “expect”, “strategy”, “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 performance dividend policy; Barrick’s financial strength and anticipated liquidity levels; and Barrick’s ability to execute on its strategic goals. Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions 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.

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.

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.

FAQ

What was the recent credit rating change for Barrick Gold (GOLD)?

S&P Global Ratings upgraded Barrick Gold's credit rating to BBB+ from BBB.

How does Barrick Gold's credit rating impact its financial position?

The upgrade indicates increased financial flexibility and resilience against lower gold prices.

What are Barrick Gold's cash distribution figures for 2021?

Barrick Gold distributed a record $1.4 billion in cash to shareholders in 2021.

When is Barrick Gold's next significant debt repayment due?

Barrick Gold has no significant debt repayments due until 2033.

What financial strategies has Barrick Gold implemented recently?

Barrick has focused on strengthening its balance sheet, generating strong free cash flows, and reducing net debt.