Barrick’s $2 billion Lumwana expansion progresses toward copper output boost

LUSAKA - Barrick Mining Corporation (NYSE:B)(TSX:ABX), a mining giant with a market capitalization of $36.13 billion that’s currently trading near its 52-week high, reported Thursday that construction of its $2 billion Super Pit Expansion Project at Zambia’s Lumwana copper mine is progressing, with site construction underway and long-lead equipment orders placed. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.

The expansion project aims to double the mine’s annual copper production to 240,000 tonnes, supported by a 50 million tonne per annum processing plant. Infrastructure upgrades, including a new power transmission framework developed with ZESCO, are advancing to support both the mine and surrounding region. The company’s strong financial position, with a healthy current ratio of 2.87 and moderate debt levels, supports its ability to execute this significant expansion project.

"With this expansion gaining momentum, Lumwana is on course to join the world’s list of large and strategically important copper mines," said Barrick president and chief executive Mark Bristow during a media briefing in Lusaka.

Since 2019, the mine has contributed over $4 billion to the Zambian economy through taxes, royalties, procurement and wages, with $3.4 billion spent with Zambian suppliers. Currently, 98% of Lumwana’s workforce consists of Zambian nationals, with nearly half from nearby communities.

The expansion includes development plans for Manyama township and an industrial supplier park. A new regional airstrip is expected to be completed by year-end, and a TEVETA-accredited training center will be established to expand mining skills in the country.

Barrick is also advancing a REDD+ forest conservation program in collaboration with local chiefdoms and the Forestry Department, designed to cover up to 300,000 hectares.

The company stated that Lumwana is tracking well against its 2025 production guidance, with first quarter performance supported by increased plant throughput and improved open-pit efficiency. InvestingPro data reveals Barrick’s robust financial health score of "GREAT," with 10+ additional ProTips available to subscribers, offering deeper insights into the company’s operational and financial performance.

This information is based on a press release statement from Barrick Mining Corporation.

In other recent news, Barrick Mining has excluded its Mali gold complex from its 2025 output forecast due to an ongoing dispute with Mali’s government over mining legislation. The Loulo-Gounkoto complex, a key asset for Barrick, has been inactive since January, with government actions including the blocking of gold exports and the detention of staff. This situation arises amidst record high gold prices, potentially impacting Barrick’s revenue significantly. Additionally, Barrick Gold has announced plans to rebrand as Barrick Mining Corporation, pending shareholder approval, as part of its strategy to emphasize both gold and copper mining. The company also plans to change its New York Stock Exchange ticker symbol to ’B’. Furthermore, Barrick intends to sell its last Canadian mine, the Hemlo gold mine, as well as its stake in the Donlin Gold Project in Alaska, aiming to capitalize on high gold prices. The sale of the Donlin stake could be valued at up to $1.1 billion. These developments reflect Barrick’s strategic adjustments in response to current market conditions and operational challenges.

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