Barrick Gold boosts gold and copper reserves

TORONTO - Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX), currently valued at nearly $30 billion in market capitalization, has announced a significant increase in its gold and copper mineral reserves, following the completion of feasibility studies and sustained exploration efforts. The company’s proven and probable gold mineral reserves have grown by 23% to 89 million ounces at 0.99 grams per tonne (g/t), up from 77 million ounces at 1.65g/t in the previous year. According to InvestingPro analysis, Barrick appears undervalued based on its Fair Value metrics, with the stock showing remarkably low price volatility - a characteristic that may appeal to long-term investors.

The notable rise in reserves was primarily due to the conversion of resources at the Reko Diq copper-gold project into reserves, adding 13 million ounces of gold at 0.28g/t on an attributable basis. This addition comes after the project’s feasibility study was concluded. Before Reko Diq’s inclusion, Barrick had already achieved its fourth consecutive year of replacing annual depletion at a 4% higher grade, emphasizing the company’s focus on high-quality assets and extending the lifespan of its operations. The company’s strong operational execution is reflected in its impressive 11% year-over-year revenue growth and healthy current ratio of 2.65, indicating robust liquidity management.

Since 2019, Barrick has replaced over 180% of its depleted gold reserves, adding nearly 46 million ounces across managed assets. The company’s measured and indicated gold resources for 2024 remain stable at 180 million ounces at 1.06g/t, with inferred resources increasing by 5% to 41 million ounces at 0.9g/t.

Copper mineral reserves have also seen a substantial increase of 224% year-on-year on an attributable basis, now standing at 18 million tonnes at 0.45% from 5.6 million tonnes at 0.39% in the previous year. This growth is attributed to the completion of feasibility studies at Lumwana and Reko Diq, affirming their status as Tier One Copper projects. The Lumwana Super Pit Expansion added 5.5 million tonnes of copper reserves, while the Reko Diq study contributed 7.3 million tonnes of copper at 0.48% to the reserves.

Mark Bristow, President and CEO, highlighted that Barrick’s strategy of organic growth through exploration and resource management has distinguished the company in the industry, positioning it as a leader in value creation. The company’s vision extends beyond mining, aiming to provide multi-generational benefits to host countries and communities.

Simon Bottoms, Executive of Mineral Resource Management and Evaluation, stated that since 2019, Barrick has successfully added 111 million ounces of attributable gold equivalent reserves at approximately $10 per ounce, showcasing the value of their strategy. The company’s reserve prices are set to optimize value from their geologically defined orebodies while delivering high value, reflecting the quality of their Tier One assets. InvestingPro data reveals that Barrick has maintained dividend payments for 38 consecutive years, demonstrating long-term financial stability. For deeper insights into Barrick’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 6 additional ProTips and over 30 financial metrics.

The information is based on a press release statement.

In other recent news, Barrick Gold, the world’s second largest gold producer, is in the midst of a tax dispute with the Mali government. This disagreement led to the temporary suspension of operations at the Loulo-Gounkoto complex, one of the largest gold mines globally. Malian authorities have seized nearly 3 metric tons of gold from the site, prompting Barrick Gold to initiate arbitration proceedings against the country.

In a separate development, Barrick Gold has warned its shareholders about an unsolicited mini-tender offer from TRC Capital Investment Corporation. The company advises its shareholders to reject this below-market offer, emphasizing its lack of affiliation with TRC Capital.

Furthermore, despite positive gold price trends predicted through 2024, Citi analysts have maintained a Neutral rating on Barrick Gold. The analysts’ stance reflects the complexity of the company’s operations and the potential uncertainty in the short-term outlook. These developments underscore the recent challenges and decisions faced by Barrick Gold.

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