7.42 Million Oz. Of Au In 2012

 

TORONTO - Barrick Gold reported that full year 2012 production of 7.42 million ounces that met original guidance for the year. All-in sustaining cash costs for the year were $945 per ounce and total cash costs of $584 per ounce were within recent guidance. Fourth quarter production was 2.02 million ounces at all-in sustaining cash costs of $972 per ounce and total cash costs of $584 per ounce.

North America produced 0.96 million ounces at all-in sustaining cash costs of $823 per ounce and total cash costs of $482 per ounce in the fourth quarter. Pre-commercial production from the new Pueblo Viejo mine in the fourth quarter was 65,000 ounces (Barrick's 60 percent share), while plant commissioning advanced. The mine achieved commercial production in January, 2013. For 2013, Barrick's share of production from Pueblo Viejo in the Dominican Republic is anticipated to be 500,000-650,000 ounces at all-in sustaining cash costs of $525-$575 per ounce and total cash costs of $375-$425 per ounce. The mine is expected to ramp up to full capacity in the second half of the year. Barrick's share of average annual gold production in the first full five years of operation is anticipated to be 625,000-675,000 ounces at all-in sustaining cash costs of $500-$600 per ounce and total cash costs of $300-$350 per ounce. Including depreciation of mine construction capital, costs are expected to be $650-$750 per ounce.

The Cortez mine in Nevada produced 0.35 million ounces at total cash costs of $242 per ounce in the fourth quarter. Cortez is expected to contribute 1.17-1.24 million ounces in 2013 at total cash costs of $255-$275 per ounce on lower grades and a change in the ore mix to more heap leach tons, which have lower recoveries.

Goldstrike produced 0.33 million ounces in the fourth quarter at total cash costs of $506 per ounce, reflecting lower grades and lower tonnes processed through the autoclave. Production in 2013 is forecast to be 0.87-0.94 million ounces at total cash costs of $680-$700 per ounce, primarily due to reduced autoclave capacity associated with construction of the thiosulphate project, which is expected to be completed in mid-2014.

North America is anticipated to produce 3.55-3.70 million ounces in 2013, reflecting the ramp-up of Pueblo Viejo to full production in the second half, partially offset by lower expected production from Goldstrike and Cortez. All-in sustaining cash costs for 2013 are forecast to be $820-$870 per ounce. Expected total cash costs of $495-$545 per ounce reflect lower grades at these mines which are anticipated to offset lower cost ounces from Pueblo Viejo, as well as higher capitalized stripping costs.

South America produced 0.46 million ounces at all-in sustaining cash costs of $742 per ounce and total cash costs of $528 per ounce in the fourth quarter. The Veladero mine contributed 0.22 million ounces at total cash costs of $577 per ounce, reflecting improved recoveries due to better leach pad kinetics and continued high inflation in Argentina. In 2013, Veladero is expected to produce 0.57-0.61 million ounces at total cash costs of $630-$670 per ounce as a result of lower grades.

Lagunas Norte in Peru produced 0.21 million ounces for the quarter at total cash costs of $298 per ounce with access to higher grades following the completion of the current phase of pit dewatering. In 2013, Lagunas Norte is expected to contribute 0.56-0.60 million ounces at total cash costs of $380-$420 per ounce as a result of lower grades and lower recovery on a higher proportion of sulfide ore.

South America is expected to produce 1.25-1.35 million ounces in 2013 at all-in sustaining cash costs of $875-$925 per ounce. Anticipated total cash costs of $550-$600 per ounce reflect lower grades at all mines, increased costs for consumables related to higher tonnage, a strengthening Peruvian currency and continued high inflation in Argentina.

Pascua-Lama is a world class resource with nearly 18 million ounces of proven and probable gold reserves, 676 million ounces of silver contained within the gold reserves, and a mine life of 25 years. It is expected to produce an average of 800,000-850,000 ounces of gold and 35 million ounces of silver in its first full five years of operation at all-in sustaining cash costs of $50-$200 per ounce(5) and total cash costs of $0 to negative $150 per ounce(5). Including depreciation of mine construction capital, costs are expected to be $550-$700 per ounce(6).

During the fourth quarter, the cost estimate and schedule for the project was finalized. Expected total mine construction capital remains unchanged in the range of $8.0 to $8.5 billion, and includes a contingency of 15-20 percent of remaining capital. First gold production continues to be targeted for the second half of 2014. Incentives for both Fluor and Techint are based on the completion of the project in line with this estimate and schedule.

As of December 31, 2012, approximately $4.2 billion had been spent and construction was approximately 40 percent complete, largely in line with plan. The four kilometer long tunnel which conveys the ore from Chile to Argentina was approximately 70 percent complete. Construction of the primary crusher in Chile commenced in January 2013 and in Argentina, construction of the process plant facility advanced with approximately 60 percent of structural steel erected.

During the fourth quarter of 2012, pre-stripping activities were halted to address certain matters that are the subject of ongoing legal and regulatory processes. To date, the suspension of pre-stripping has not altered our target of first production in the second half of 2014; however, the outcomes of these processes are uncertain. We will continue to assess the potential for impacts on the timing of first gold.