Barrick Gold, a leading gold miner, is confidently projecting a 30% growth in gold-equivalent ounces from its existing assets by the end of the decade. CEO Mark Bristow outlined this ambitious plan at the Gold Forum Americas in Colorado Springs, highlighting Barrick’s unique approach in an era of mergers and acquisitions (M&A).
Bristow emphasized that Barrick’s growth strategy is rooted in organic expansion, focusing on leveraging its robust asset base rather than relying heavily on M&A. He explained that the company’s commitment to exploration has resulted in a portfolio of six Tier One gold mines, with more in the pipeline. These mines boast high-quality orebodies and industry-leading grades, providing a solid foundation for sustained growth.
One key growth region for Barrick is Nevada, described by Bristow as “the world’s premier mining jurisdiction.” The newly commissioned Goldrush mine is poised to ramp up production to 400,000 ounces per year by 2028. Adjacent to Goldrush, the 100% Barrick-owned Fourmile project, with its impressive gold grades twice that of Goldrush, is on track to become another Tier One mine. Additionally, the 14-million-ounce Leeville project holds the potential to significantly enhance Carlin’s reserves, potentially extending its life beyond 2045 and becoming a major driver of future growth.
Beyond gold, Barrick is strategically expanding its copper portfolio, recognizing the growing demand for this strategic metal. The second phase of the Reko Diq copper-gold project in Pakistan is expected to generate 400,000 tonnes of copper and 500,000 ounces of gold annually. Meanwhile, the Lumwana Super Pit in Zambia, nearing the completion of a feasibility study by year’s end, is set to double its production over a 30-year life span. These copper ventures will broaden Barrick’s presence in the copper sector and diversify its revenue streams.
Barrick’s ambitious growth plans are bolstered by its prudent financial management. Since 2019, the company has achieved a remarkable feat, reducing its net debt by $3.5 billion, investing $11.2 billion in long-term mine plans, and returning over $5 billion to shareholders. This strong financial foundation, coupled with robust operating cash flows, provides Barrick with the flexibility to fund its expansion and continue driving its commodity production growth.
Despite its impressive track record, Bristow believes that the market is undervaluing Barrick. He pointed out that, based on analysts’ consensus net asset value calculations, the value of just their interest in Nevada Gold Mines and their copper portfolio almost surpasses their current market capitalization. This suggests a significant potential for future appreciation in Barrick’s share price.
Barrick Gold’s commitment to organic growth, strategic investments, and responsible financial management positions the company for continued success in the gold and copper markets. With its focus on high-quality assets, innovative projects, and diversification, Barrick is poised to capitalize on the growing demand for these essential commodities and deliver long-term value for its shareholders.
