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Barrick gold, copper output surge

Barrick Gold saw its FY19 net earnings jump to US$3.97 billion from a loss of $1.5 billion in 2018,and revenue rise 34% to $9.7 billion, on the back of full-year production of 5.47 million ounces of gold (4.53Moz in 2018) and 432 million pounds of copper.
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Barrick Gold produced 5.47Moz in 2019

The company's 2019 full-year results were its first since completing a merger with Randgold Resources at the start of the year, and the subsequent formation of the Nevada Gold Mines joint venture with Newmont in March.

The company provided guidance of 2020 consolidated production of 4.8M-5.2Moz at all-in sustaining cost of $920-$970/oz and 440-500Mlbs copper at AISC of $2.20-2.50/lb.

"In the year since the completion of Barrick's merger with Randgold, we have transformed the new company while creating the world's largest gold mining complex in Nevada in a transaction that had been unsuccessfully pursued for two decades. The Acacia minorities' buy-out enabled us to settle that company's long-running dispute with the Tanzanian government and to integrate its assets into our operations. We've also started selling off non-core assets with the disposal of our stakes in the Kalgoorlie gold mine in Australia and the agreed sale of the Massawa project in Senegal," president and CEO Mark Bristow said.

Bristow said the pace of these achievements was attributable to a flattened management structure and the transfer of responsibilities from the corporate office to the operations. "We now have agile multi-disciplinary teams capable not only of executing complex, industry-leading corporate transactions but also of running our operations efficiently while pursuing new growth opportunities," he said.

Barrick saw its cash and equivalents increase 38% to $3.3 billion in 2019 compared to 2018, free cash flow increase 210% to $1.1 billion, while its debt reduced 4% to $5.5 billion. About $5 billion of Barrick's debt matures after 2032.

"The growth in [Barrick's] liquidity means that the company is now capable of managing its business and taking advantage of new opportunities independent of the vagaries of the capital markets. Our organic growth potential alone will support the 10-year production plan we'll be sharing with the market in March and our exploration teams are stocking our future pipeline."

Barrick earlier reported a 14.5% increase in its reserves and resources to 1,300 million tonnes grading 1.68 grams per tonne for 71 million ounces of gold and measured and indicated mineral resources of 3.4Bt grading 1.55g/t for 170Moz, with a further 940mt grading 1.30g/t for 39Moz in the inferred category.

Shares in Barrick Gold were trading at C$24.53 Wednesday, valuing the company at $43.6 billion.