Barrick Gold Reported Third Quarter Results

TORONTO, ON - Barrick Gold Corporation reported net earnings attributable to equity holders of Barrick of $175 million, and adjusted net earnings1 of $278 million for the third quarter. The Company reported revenues of $2.30 billion in the third quarter, and net cash provided by operating activities was $951 million. Barrick generated $674 million in free cash flow in the third quarter. Gold production in the third quarter was 1.38 million ounces, at a cost of sales applicable to gold of $766 per ounce, and all-in sustaining costs3 of $704 per ounce. 

David Oh, Seniero VP said, “We have increased our gold production guidance for 2016 to 5.25-5.55 million ounces, up from our original range of 5.00-5.50 million ounces.” Cost of sales applicable to gold is expected to be $800-$850 per ounce for the full year. We have reduced our 2016 all-in sustaining cost guidance to $740-$775 per ounce, marking three consecutive quarters of improved full-year cost guidance. Total debt has been reduced by $1.4 billion year-to-date, and we remain on track to achieve our $2 billion debt reduction target for the year. We are partnering with Cisco for the digital reinvention of our business, beginning with the development of a flagship digital operation at Cortez. 

Robust cash flow generation and low all-in sustaining costs3 in the third quarter reflect our focus on productivity, efficiency, cost management, and capital discipline. Through our collaboration with Cisco, we will leverage digital technologies and innovation to unlock even more value, while improving decision-making and performance across the entire organization.

We remain on track to reduce our debt by $2 billion this year. With a stronger balance sheet, we will be better able to withstand gold price volatility, with greater flexibility to invest in our business to grow free cash flow per share over the long term. In support of this objective, we are growing margins at our existing operations through innovation and productivity improvements, and we are advancing a deep pipeline of internal growth projects, many of which are located at or near existing operations and infrastructure. At the same time, we are continuously evaluating external opportunities.