TORONTO, ONTARIO--(Marketwired - April 24, 2013) -
Based on IFRS and expressed in US dollars. For a full explanation of results, the Financial Statements and Management Discussion & Analysis, please see the company's website, www.barrick.com.
Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (Barrick or the "company") today reported strong first quarter 2013 financial and operating results.
- Net earnings of $847 million ($0.85 per share).
- Adjusted net earnings of $923 million ($0.92 per share)(1).
- Operating cash flow of $1.09 billion.
- Adjusted operating cash flow of $1.16 billion(1).
| FIRST QUARTER 2013 OPERATING HIGHLIGHTS AND FULL YEAR 2013 GUIDANCE | ||||
| Gold | First Quarter 2013 |
2013 Guidance |
(previous) | |
| Production (000s of ounces) | 1,797 | 7,000-7,400 | ||
| All-in sustaining costs ($ per ounce)(1) | 919 | 950-1,050 | (1,000-1,100) | |
| Total cash costs ($ per ounce)(1) | 561 | 610-660 | ||
| Copper | ||||
| Production (millions of pounds) | 127 | 480-540 | ||
| C1 cash costs ($ per pound)(1) | 2.46 | 2.10-2.30 | ||
| C3 fully allocated costs ($ per pound)(1) | 3.00 | 2.60-2.85 | ||
"Our high quality portfolio of mines combined with our sharp focus on cost management has translated into strong quarterly financial and operating results. It is very rewarding to see that our cost reduction efforts have begun to take effect and are reflected in low all-in sustaining costs of $919 per ounce and total cash costs of only $561 per ounce this quarter. We have also further reduced total capex, exploration and all-in sustaining cost guidance for the full year," said Jamie Sokalsky, Barrick's President and CEO. "At Pascua-Lama, we are working to address the environmental and other regulatory requirements on the Chilean side of the project. Concurrently, we are taking a hard look at evaluating all alternatives in light of the uncertainties associated with the suspension of construction in Chile. We are committed to a disciplined approach to capital allocation, based on the principle that returns will drive production, production will not drive returns. While we remain positive on the long-term fundamentals for gold and copper, we don't rely on higher metal prices to be the only driver of shareholder returns."
FINANCIAL RESULTS
Net earnings and adjusted net earnings for the first quarter 2013 of $847 million ($0.85 per share) and $923 million ($0.92 per share), respectively, compared to net earnings and adjusted net earnings of $1.04 billion ($1.04 per share) and $1.10 billion ($1.10 per share), respectively, in the same prior year period. The decrease in net earnings and adjusted net earnings was largely driven by lower realized gold and copper prices, lower gold and copper sales volumes and higher cost of sales applicable to gold and copper, partially offset by lower income tax expense.
Significant adjusting items (net of tax effects) for the quarter include:
- $63 million in unrealized foreign currency translation losses on working capital balances;
- $30 million in other non-recurring expenses; and
- $17 million in unrealized gains on non-hedge derivative instruments.
First quarter 2013 operating cash flow of $1.09 billion compares to $1.37 billion in the first quarter of 2012. Adjusted operating cash flow of $1.16 billion removes the impact of the Australian dollar hedge settlement and compares to adjusted operating cash flow of $1.48 billion in the same prior year period.
OPERATING RESULTS
First quarter 2013 gold production was 1.80 million ounces at all-in sustaining and total cash costs of $919 per ounce and $561 per ounce, respectively. All-in sustaining and total cash costs benefited from strong performances at Goldstrike, Cortez, and Veladero. The company reaffirms 2013 gold production guidance of 7.0-7.4 million ounces at total cash costs of $610-$660 per ounce. Full year all-in sustaining cost guidance has been reduced to $950-$1,050 per ounce from the previous guidance of $1,000-$1,100 per ounce.
North America Regional Business Unit
North America produced 0.87 million ounces at all-in sustaining and total cash costs of $770 per ounce and $487 per ounce, respectively. Barrick's 60 percent share of production from the new Pueblo Viejo mine was 96,000 ounces at total cash costs of $550 per ounce, after achieving commercial production in January. The mine remains on track to ramp up to full capacity in the second half of this year. Barrick's share of average annual gold production in the first full five years of operation is anticipated to be 0.625-0.675 million ounces at all-in sustaining and total cash costs of $500-$600 per ounce(2) and $300-$350 per ounce(2), respectively.
The government of the Dominican Republic is asking Pueblo Viejo Dominicana Corporation (jointly owned 60 percent by Barrick and 40 percent by Goldcorp) to accelerate and significantly increase its share of the benefits from Pueblo Viejo. The company, while reserving its rights under the Special Lease Agreement (SLA), which cannot be unilaterally altered, continues to engage in dialogue with the government in an effort to achieve a mutually acceptable outcome.
The Cortez mine produced 0.34 million ounces at total cash costs of $177 per ounce, largely reflecting better than anticipated grades. Goldstrike produced 0.23 million ounces at total cash costs of $605 per ounce primarily as a result of higher than expected grades and recoveries.
We continue to expect full year 2013 production for North America to be 3.55-3.70 million ounces at all-in sustaining and total cash costs of $820-$870 per ounce and $495-$545 per ounce, respectively.
South America Regional Business Unit
South America produced 0.37 million ounces at all-in sustaining and total cash costs of $638 per ounce and $405 per ounce, respectively. Higher silver by-product credits at the Veladero mine and delays in sustaining capital spend at Pierina and Veladero positively impacted all-in sustaining costs.
The Veladero mine contributed 0.21 million ounces at total cash costs of $400 per ounce and Lagunas Norte produced 0.15 million ounces at total cash costs of $333 per ounce. We continue to expect South America to produce 1.25-1.35 million ounces in 2013 at all-in sustaining and total cash costs of $875-$925 per ounce and $550-$600 per ounce, respectively.
Australia Pacific Regional Business Unit
Australia Pacific produced 0.45 million ounces at all-in sustaining and total cash costs of $1,096 per ounce and $785 per ounce, respectively. Porgera, the region's largest contributor, produced 0.12 million ounces at total cash costs of $934 per ounce, reflecting the processing of lower cost stockpiles.
We continue to expect full year 2013 production for Australia Pacific to be 1.70-1.85 million ounces at all-in sustaining and total cash costs of $1,200-$1,300 per ounce and $880-$950 per ounce, respectively.
African Barrick Gold plc
First quarter attributable production from African Barrick Gold was 0.11 million ounces at all-in sustaining and total cash costs of $1,561 per ounce and $931 per ounce. We continue to expect Barrick's share of 2013 production from African Barrick Gold to be 0.40-0.45 million ounces at all-in sustaining and total cash costs of $1,550-$1,600 per ounce and $925-$975 per ounce, respectively.
Global Copper Business Unit
Copper production was 127 million pounds at C1 cash costs of $2.46 per pound and C3 fully allocated costs of $3.00 per pound. Lumwana produced 57 million pounds at C1 cash costs of $3.41 per pound and Zaldívar produced 70 million pounds at C1 cash costs of $1.54 per pound. We continue to expect 2013 copper production to be 480-540 million pounds at C1 cash costs of $2.10-$2.30 per pound and C3 fully allocated costs at $2.60-$2.85 per pound.
Utilizing option collar hedging strategies, the company has protected the downside on approximately half of our remaining 2013 copper production at an average floor price of $3.50 per pound and can participate on the same amount up to an average price of $4.25 per pound(3).
PASCUA-LAMA PROJECT UPDATE
Pascua-Lama is one of the world's largest gold and silver resources with nearly 18 million ounces of proven and probable gold reserves(4), 676 million ounces of silver contained within the gold reserves(4), and an expected 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 and total cash costs of $50-$200 per ounce(5) and negative $150 to $0 per ounce, respectively.
During the fourth quarter of 2012, pre-stripping activities in Chile were halted to address increased dust in the open pit area following stronger than normal winds. The project has since strengthened dust mitigation and control measures. Regulatory restrictions have also been placed on the project due to the need to repair and improve certain aspects of the water management system in Chile. Completion of measures to address these aspects is targeted for first quarter 2014.
On April 9, 2013, the Copiapó Court of Appeals in Chile granted a request for a preliminary injunction to suspend construction activities on the Chilean side of the project pending a hearing on a constitutional rights action filed in September of 2012. The action alleges noncompliance with the environmental requirements of the project's Chilean environmental approval. Upon confirming the court order, Barrick took immediate steps to suspend construction activities in Chile, which includes work on the primary crusher and the Chilean side of the tunnel that conveys ore from Chile to Argentina. Activities determined to be necessary for environmental protection are expected to continue, upon appropriate authorization as contemplated by the Court. Construction in Argentina, where the majority of Pascua-Lama's critical infrastructure is located, including the process plant and tailings storage facility, has not been affected. Until we have clarity on the regulatory and legal aspects, we are unable to fully assess the impact on the capital budget, operating costs and schedule of the project. The company is at an early stage of evaluating an alternative development plan that involves accelerating the development of another smaller pit in Argentina in order to provide a source of ore for initial production. This alternative could provide ore for about six months of production during commissioning and ramp up, following which the mine plan would be dependent on a continuous supply of Chilean ore. Therefore, if resumption of construction activities in Chile, including the pre-stripping, is delayed beyond late 2013, or if such development alternative is determined not to be feasible, there could be a significant change to the mine plan and an impact on the capital cost and production schedule of the project. The company will continue to evaluate all alternatives, in light of the uncertainties associated with the legal and regulatory actions, and the current commodity price environment, including the possibility of suspending the project.
As of March 31, 2013, approximately $4.8 billion had been spent. During the quarter, the La Mesa substation in Chile was energized and the southern portion of the 23Kv mine distribution loop completed. As of that date, the tunnel was approximately 80 percent complete. In Argentina, construction of the process plant facility advanced with about 70 percent of structural steel erected; 65 percent of concrete poured; and 55 percent of mass earthworks completed.
DISCIPLINED CAPITAL ALLOCATION
Barrick's strategy prioritizes shareholder value creation by focusing on maximizing risk-adjusted rates of return and free cash flow. The company has taken and will undertake the following steps to re-focus the business and adhere to the principles of its disciplined capital allocation framework based on the principle that returns will drive production, production will not drive returns:
- The company has reduced its 2013 outlook in a number of key spending categories, largely driven by its sharp focus on cost control, which is an integral element of its disciplined approach to capital allocation. Barrick launched a company-wide overhead review in the first quarter of 2013 and reduced overhead costs by over $100 million for the full year. We identified approximately $500 million of further reductions to expenditures and have announced revisions to full year 2013 guidance as follows:
- total capex to $5.2-$5.7 billion from previous guidance of $5.7-$6.3 billion;
- all-in sustaining costs to $950-$1,050 per ounce from previous guidance of $1,000-$1,100 per ounce; and
- exploration to $300-$340 million from previous guidance of $400-$440 million.
- The company is pursuing opportunities to optimize our portfolio, including the potential sale of Barrick Energy, Kabanga and other non-core assets.
- In today's challenging environment, Barrick has no plans to build any new mines.
- The company continues to advance our rapidly expanding Goldrush deposit in Nevada.
- Barrick recalibrated long-term gold production to a higher quality, more profitable target of eight million ounces by 2016.
Barrick's vision is to be the world's best gold mining company by operating in a safe, profitable and responsible manner. Barrick's shares are traded on the Toronto and New York stock exchanges.
(1) Adjusted net earnings, adjusted net earnings per share, adjusted operating cash flow, all-in sustaining costs per ounce, total cash costs per ounce, C1 cash costs per pound, and C3 fully allocated costs per pound are non-GAAP financial performance measures with no standardized definition under IFRS. See pages 31-34 of Barrick's First Quarter 2013 Report.
(2) Based on first full five year average and gold and WTI oil price assumptions of $1,700/oz and $90/bbl, respectively. Does not include escalation for future inflation.
(3) The realized price on all 2013 copper production is expected to be reduced by approximately $0.04 per pound as a result of the net premium paid on option hedging strategies. Our remaining copper production is subject to market prices.
(4) For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 25-35 of Barrick's Form 40-F.
(5) Based on gold, silver and WTI oil price assumptions of $1,700/oz, $30/oz, and $90/bbl, respectively and assuming a Chilean Peso to US dollar exchange rate of 475:1. Does not include escalation for future inflation. It is too early to assess the impact of the construction stoppage in Chile and the impact of any alternatives on the project's capital cost estimate and schedule as well as the impact on the average annual gold and silver production, all-in sustaining costs and total cash costs over the first full five years of operation.
| Key Statistics | |||||
| Barrick Gold Corporation | Three months ended | ||||
| (in United States dollars) | March 31, | ||||
| (Unaudited) | 2013 | 2012 (restated)7 | |||
| Operating Results | |||||
| Gold production (thousands of ounces)1 | 1,797 | 1,881 | |||
| Gold sold (thousands of ounces) | 1,747 | 1,783 | |||
| Per ounce data | |||||
| Average spot gold price | $ | 1,632 | $ | 1,691 | |
| Average realized gold price2 | 1,629 | 1,691 | |||
| Total cash costs2 | 561 | 540 | |||
| All-in sustaining costs2 | 919 | 909 | |||
| Copper production (millions of pounds) | 127 | 117 | |||
| Copper sold (millions of pounds) | 115 | 119 | |||
| Per pound data | |||||
| Average spot copper price | $ | 3.60 | $ | 3.77 | |
| Average realized copper price2 | 3.56 | 3.78 | |||
| C1 cash costs2 | 2.46 | 2.04 | |||
| Depreciation3 | 0.35 | 0.44 | |||
| Other4 | 0.19 | 0.20 | |||
| C3 fully allocated costs2 | 3.00 | 2.68 | |||
| Financial Results (millions) | |||||
| Revenues | $ | 3,437 | $ | 3,644 | |
| Net earnings5 | 847 | 1,039 | |||
| Adjusted net earnings2 | 923 | 1,096 | |||
| Operating cash flow | 1,085 | 1,374 | |||
| Adjusted operating cash flow2 | 1,158 | 1,476 | |||
| Per Share Data (dollars) | |||||
| Net earnings (basic) | 0.85 | 1.04 | |||
| Adjusted net earnings (basic)2 | 0.92 | 1.10 | |||
| Net earnings (diluted) | 0.85 | 1.04 | |||
| Weighted average basic common shares (millions) | 1,001 | 1,000 | |||
| Weighted average diluted common shares (millions)6 | 1,001 | 1,002 | |||
| As at | As at | ||||
| March 31, | December 31, | ||||
| 2013 | 2012 (restated)7 | ||||
| Financial Position (millions) | |||||
| Cash and equivalents | $ | 2,342 | $ | 2,097 | |
| Non-cash working capital | 3,263 | 2,884 | |||
| 1 | Production includes our equity share of gold production at Highland Gold up to April 26, 2012, the effective date of our sale of Highland Gold. Production also includes African Barrick Gold on a 73.9% basis, which reflects our equity share of production. |
| 2 | Realized price, total cash costs, all-in sustaining costs, C1 cash costs, C3 fully allocated costs, adjusted net earnings and adjusted operating cash flow are non-gaap financial performance measures with no standard definition under IFRS. Refer to the Non-Gaap Financial Performance Measures section of the Company's MD&A. |
| 3 | Represents equity depreciation expense divided by equity ounces of gold sold or pounds of copper sold. |
| 4 | For a breakdown, see reconciliation of cost of sales to C1 cash costs and C3 fully allocated costs per pound in the Non-Gaap Financial Performance Measures section of the Company's MD&A. |
| 5 | Net earnings represents net income attributable to the equity holders of the Company. |
| 6 | Fully diluted includes dilutive effect of stock options. |
| 7 | Balances related to 2012 have been restated to reflect the impact of the adoption of new accounting pronouncements. See note 2B of the interim consolidated financial statements. |
| Production and Cost Summary | ||||||||
| Gold Production (attributable ounces) (000's) | All-in sustaining costs4 ($/oz) | |||||||
| Three months ended | Three months ended | |||||||
| March 31, | March 31, | |||||||
| (Unaudited) | 2013 | 2012 | 2013 | 20126 | ||||
| Gold | ||||||||
| North America | 872 | 888 | $ | 770 | $ | 782 | ||
| South America | 370 | 451 | 638 | 615 | ||||
| Australia Pacific | 447 | 426 | 1,096 | 1,107 | ||||
| African Barrick Gold1 | 108 | 107 | 1,561 | 1,438 | ||||
| Other2 | - | 9 | - | - | ||||
| Total | 1,797 | 1,881 | $ | 919 | $ | 909 | ||
| Copper Production (attributable pounds) (Millions) | C1 Cash Costs ($/lb) | ||||||
| Three months ended | Three months ended | ||||||
| March 31, | March 31, | ||||||
| (Unaudited) | 2013 | 2012 | 2013 | 2012 (Restated)6 | |||
| Total | 127 | 117 | $ | 2.46 | $ | 2.04 | |
| Total Gold Production Costs ($/oz) | |||||||
| Three months ended | |||||||
| March 31, | |||||||
| (Unaudited) | 2013 | 2012 (Restated)6 | |||||
| Direct mining costs at market foreign exchange rates | $ | 610 | $ | 588 | |||
| Gains realized on currency hedge and commodity hedge/economic hedge contracts | (50 | ) | (57 | ) | |||
| Other3 | (14 | ) | (14 | ) | |||
| By-product credits | (29 | ) | (17 | ) | |||
| Royalties | 44 | 40 | |||||
| Total cash costs4 | 561 | 540 | |||||
| General & administrative costs | 44 | 52 | |||||
| Rehabilitation - accretion and amortization | 26 | 21 | |||||
| Mine on-site exploration and evaluation costs | 11 | 12 | |||||
| Mine development expenditures | 156 | 158 | |||||
| Sustaining capital expenditures | 121 | 126 | |||||
| All-in sustaining costs4 | $ | 919 | $ | 909 | |||
| Total Copper Production Costs ($/lb) | |||||||
| Three months ended | |||||||
| March 31, | |||||||
| (Unaudited) | 2013 | 2012 (Restated)6 | |||||
| C1 cash costs4 | $ | 2.46 | $ | 2.04 | |||
| Depreciation | 0.35 | 0.44 | |||||
| Other5 | 0.19 | 0.20 | |||||
| C3 fully allocated costs4 | $ | 3.00 | $ | 2.68 | |||
| 1 | Figures relating to African Barrick Gold are presented on a 73.9% basis, which reflects our equity share of production. |
| 2 | Includes our equity share of gold production at Highland Gold up to April 26, 2012, the effective date of our sale of Highland Gold. |
| 3 | Represents the Barrick Energy gross margin divided by equity ounces of gold sold. |
| 4 | Total cash costs, all-in sustaining costs, C1 cash costs and C3 fully allocated costs are non-gaap financial performance measures with no standard meaning under IFRS. Refer to the Non-Gaap Financial Performance Measures section of the Company's MD&A. |
| 5 | For a breakdown, see reconciliation of cost of sales to C1 cash costs and C3 fully allocated costs per pound in the Non-Gaap Financial Performance Measures section of the Company's MD&A. |
| 6 | Balances related to 2012 have been restated to reflect the impact of the adoption of new accounting pronouncements. See note 2B of the interim consolidated financial statements. |
| Consolidated Statements of Income | |||||||
| Barrick Gold Corporation | |||||||
| (in millions of United States dollars, except per share data) (Unaudited) | Three months ended March 31, | ||||||
| 2013 | 2012 | ||||||
| (restated - | |||||||
| note 2B) | |||||||
| Revenue (notes 4 and 5) | $ | 3,437 | $ | 3,644 | |||
| Costs and expenses (income) | |||||||
| Cost of sales (notes 4 and 6) | 1,844 | 1,753 | |||||
| Corporate administration | 45 | 48 | |||||
| Exploration and evaluation (note 7) | 54 | 73 | |||||
| Other expense (note 9A) | 166 | 117 | |||||
| Impairment charges (note 9B) | 5 | 94 | |||||
| Other income (note 9C) | (21 | ) | (41 | ) | |||
| Loss from equity investees | - | 4 | |||||
| (Gain) on non-hedge derivatives (note 16D) | (42 | ) | (34 | ) | |||
| Income before finance items and income taxes | 1,386 | 1,630 | |||||
| Finance items | |||||||
| Finance income | 3 | 3 | |||||
| Finance costs (note 10) | (108 | ) | (48 | ) | |||
| Income before income taxes | 1,281 | 1,585 | |||||
| Income tax expense (note 11) | (420 | ) | (535 | ) | |||
| Net income | $ | 861 | $ | 1,050 | |||
| Attributable to: | |||||||
| Equity holders of Barrick Gold Corporation | $ | 847 | $ | 1,039 | |||
| Non-controlling interests (note 19) | $ | 14 | $ | 11 | |||
| Earnings per share data attributable to the equity holders of Barrick Gold Corporation (note 8) | |||||||
| Net income | |||||||
| Basic | $ | 0.85 | $ | 1.04 | |||
| Diluted | $ | 0.85 | $ | 1.04 | |||
| The notes to these unaudited interim financial statements, which are contained in the First Quarter Report 2013 available on our website are an integral part of these consolidated financial statements. |
| Consolidated Statements of Comprehensive Income | ||||||
| Barrick Gold Corporation | ||||||
| (in millions of United States dollars) (Unaudited) | Three months ended March 31, | |||||
| 2013 | 2012 | |||||
| (restated - | ||||||
| note 2B) | ||||||
| Net income | $ | 861 | $ | 1,050 | ||
| Other comprehensive income (loss), net of taxes | ||||||
| Items that may be reclassified subsequently to profit or loss: | ||||||
| Unrealized gains (losses) on available-for-sale ("AFS") financial securities, net of tax $2, $nil | (8 | ) | 2 | |||
| Realized (gains) losses and impairments on AFS financial securities, net of tax $nil, $nil | (2 | ) | - | |||
| Unrealized gains (losses) on derivatives designated as cash flow hedges, net of tax $3, $2 | 30 | (15 | ) | |||
| Realized (gains) on derivatives designated as cash flow hedges, net of tax $18, $29 | (75 | ) | (80 | ) | ||
| Currency translation adjustments, net of tax $nil, $nil | (21 | ) | 14 | |||
| Total other comprehensive loss | (76 | ) | (79 | ) | ||
| Total comprehensive income | $ | 785 | $ | 971 | ||
| Attributable to: | ||||||
| Equity holders of Barrick Gold Corporation | $ | 771 | $ | 960 | ||
| Non-controlling interests | $ | 14 | $ | 11 | ||
| The notes to these unaudited interim financial statements, which are contained in the First Quarter Report 2013 available on our website are an integral part of these consolidated financial statements. |
| Consolidated Statements of Cash Flow | |||||||
| Barrick Gold Corporation | |||||||
| (in millions of United States dollars) (Unaudited) | Three months ended March 31, | ||||||
| 2013 | 2012 (restated - | ||||||
| note 2B) | |||||||
| OPERATING ACTIVITIES | |||||||
| Net income | $ | 861 | $ | 1,050 | |||
| Adjusted for the following items: | |||||||
| Depreciation | 415 | 399 | |||||
| Finance costs (excludes accretion) | 91 | 35 | |||||
| Impairment charges (note 9B) | 5 | 94 | |||||
| Income tax expense (note 11) | 420 | 535 | |||||
| Increase in inventory | (171 | ) | (82 | ) | |||
| (Gain) on non-hedge derivatives | (42 | ) | (34 | ) | |||
| (Gain) on sale of long-lived assets/investments | (8 | ) | (10 | ) | |||
| Other operating activities (note 12A) | (119 | ) | (231 | ) | |||
| Operating cash flows before interest and income taxes | 1,452 | 1,756 | |||||
| Interest paid | (47 | ) | (21 | ) | |||
| Income taxes paid | (320 | ) | (361 | ) | |||
| Net cash provided by operating activities | 1,085 | 1,374 | |||||
| INVESTING ACTIVITIES | |||||||
| Property, plant and equipment | |||||||
| Capital expenditures (note 4) | (1,430 | ) | (1,415 | ) | |||
| Sales proceeds | 2 | - | |||||
| Investments | |||||||
| Sales | 18 | 37 | |||||
| Other investing activities (note 12B) | (79 | ) | (58 | ) | |||
| Net cash used in investing activities | (1,489 | ) | (1,436 | ) | |||
| FINANCING ACTIVITIES | |||||||
| Proceeds on exercise of stock options | 1 | 4 | |||||
| Long-term debt | |||||||
| Proceeds | 2,050 | - | |||||
| Repayments | (1,205 | ) | (7 | ) | |||
| Dividends | (200 | ) | (150 | ) | |||
| Funding from non-controlling interests | 13 | 140 | |||||
| Other financing activities (note 12C) | (8 | ) | (14 | ) | |||
| Net cash provided by (used in) financing activities | 651 | (27 | ) | ||||
| Effect of exchange rate changes on cash and equivalents | (2 | ) | 8 | ||||
| Net increase (decrease) in cash and equivalents | 245 | (81 | ) | ||||
| Cash and equivalents at beginning of period (note 16A) | 2,097 | 2,749 | |||||
| Cash and equivalents at end of period (note 16A) | $ | 2,342 | $ | 2,668 | |||
| The notes to these unaudited interim financial statements, which are contained in the First Quarter Report 2013 available on our website are an integral part of these consolidated financial statements. |
| Consolidated Balance Sheets | |||||||
| Barrick Gold Corporation | |||||||
| (in millions of United States dollars) (Unaudited) | As at March 31, | As at December 31, | As at January 1, | ||||
| 2013 | 2012 (restated - note 2B) | 2012 (restated - note 2B) | |||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and equivalents (note 16A) | $ | 2,342 | $ | 2,097 | $ | 2,749 | |
| Accounts receivable | 380 | 449 | 426 | ||||
| Inventories (note 13) | 2,809 | 2,585 | 2,498 | ||||
| Other current assets | 675 | 626 | 876 | ||||
| Total current assets | 6,206 | 5,757 | 6,549 | ||||
| Non-current assets | |||||||
| Equity in investees | 20 | 20 | 341 | ||||
| Other investments | 50 | 78 | 161 | ||||
| Property, plant and equipment (note 14) | 30,172 | 29,277 | 29,076 | ||||
| Goodwill (note 15) | 8,835 | 8,837 | 9,626 | ||||
| Intangible assets | 453 | 453 | 569 | ||||
| Deferred income tax assets | 488 | 437 | 409 | ||||
| Non-current portion of inventory (note 13) | 1,584 | 1,555 | 1,153 | ||||
| Other assets | 1,189 | 1,064 | 1,002 | ||||
| Total assets | $ | 48,997 | $ | 47,478 | $ | 48,886 | |
| LIABILITIES AND EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 2,202 | $ | 2,267 | $ | 2,085 | |
| Debt (note 16B) | 694 | 1,848 | 196 | ||||
| Current income tax liabilities | 37 | 41 | 306 | ||||
| Other current liabilities | 240 | 261 | 326 | ||||
| Total current liabilities | 3,173 | 4,417 | 2,913 | ||||
| Non-current liabilities | |||||||
| Debt (note 16B) | 14,104 | 12,095 | 13,173 | ||||
| Provisions | 2,765 | 2,812 | 2,326 | ||||
| Deferred income tax liabilities | 2,873 | 2,668 | 4,231 | ||||
| Other liabilities | 845 | 850 | 689 | ||||
| Total liabilities | 23,760 | 22,842 | 23,332 | ||||
| Equity | |||||||
| Capital stock (note 18) | 17,929 | 17,926 | 17,892 | ||||
| Retained earnings | 3,916 | 3,269 | 4,562 | ||||
| Accumulated other comprehensive income | 387 | 463 | 595 | ||||
| Other | 314 | 314 | 314 | ||||
| Total equity attributable to Barrick Gold Corporation shareholders | 22,546 | 21,972 | 23,363 | ||||
| Non-controlling interests (note 19) | 2,691 | 2,664 | 2,191 | ||||
| Total equity | 25,237 | 24,636 | 25,554 | ||||
| Contingencies and commitments (notes 13, 14 and 20) | |||||||
| Total liabilities and equity | $ | 48,997 | $ | 47,478 | $ | 48,886 | |
| The notes to these unaudited interim financial statements, which are contained in the First Quarter Report 2013 available on our website are an integral part of these consolidated financial statements. |
| Consolidated Statements of Changes in Equity |
| Barrick Gold Corporation | Attributable to equity holders of the company | |||||||||||||||||||||
| (in millions of United States dollars) (Unaudited) | Common Shares (in thousands) | Capital stock | Retained earnings | Accumulated other comprehensive income1 | Other2 | Total equity attributable to shareholders | Non-controlling interests | Total equity | ||||||||||||||
| At January 1, 2013 (restated - note 2B) | 1,001,108 | $ | 17,926 | $ | 3,269 | $ | 463 | $ | 314 | $ | 21,972 | $ | 2,664 | $ | 24,636 | |||||||
| Net income | - | - | 847 | - | - | 847 | 14 | 861 | ||||||||||||||
| Total other comprehensive income (loss) | - | - | - | (76 | ) | - | (76 | ) | - | (76 | ) | |||||||||||
| Total comprehensive income | - | - | 847 | (76 | ) | - | 771 | 14 | 785 | |||||||||||||
| Transactions with owners | ||||||||||||||||||||||
| Dividends | - | - | (200 | ) | - | - | (200 | ) | - | (200 | ) | |||||||||||
| Issued on exercise of stock options | 44 | 1 | - | - | - | 1 | - | 1 | ||||||||||||||
| Recognition of stock option expense | - | 2 | - | - | - | 2 | - | 2 | ||||||||||||||
| Funding from non-controlling interests | - | - | - | - | - | - | 13 | 13 | ||||||||||||||
| Total transactions with owners | 44 | 3 | (200 | ) | - | - | (197 | ) | 13 | (184 | ) | |||||||||||
| At March 31, 2013 | 1,001,152 | $ | 17,929 | $ | 3,916 | $ | 387 | $ | 314 | $ | 22,546 | $ | 2,691 | $ | 25,237 | |||||||
| At January 1, 2012 (restated - note 2B) | 1,000,423 | $ | 17,892 | $ | 4,562 | $ | 595 | $ | 314 | $ | 23,363 | $ | 2,191 | $ | 25,554 | |||||||
| Net income | - | - | 1,039 | - | - | 1,039 | 11 | 1,050 | ||||||||||||||
| Total other comprehensive income | - | - | - | (79 | ) | - | (79 | ) | - | (79 | ) | |||||||||||
| Total comprehensive income | - | - | 1,039 | (79 | ) | - | 960 | 11 | 971 | |||||||||||||
| Transactions with owners | ||||||||||||||||||||||
| Dividends | - | - | (150 | ) | - | - | (150 | ) | - | (150 | ) | |||||||||||
| Issued on exercise of stock options | 124 | 4 | - | - | - | 4 | - | 4 | ||||||||||||||
| Recognition of stock option expense | - | 3 | - | - | - | 3 | - | 3 | ||||||||||||||
| Funding from non-controlling interests | - | - | - | - | - | - | 140 | 140 | ||||||||||||||
| Other decrease in non-controlling interests | - | - | - | - | - | - | (3 | ) | (3 | ) | ||||||||||||
| Total transactions with owners | 124 | 7 | (150 | ) | - | - | (143 | ) | 137 | (6 | ) | |||||||||||
| At March 31, 2012 (restated - note 2B) | 1,000,547 | $ | 17,899 | $ | 5,451 | $ | 516 | $ | 314 | $ | 24,180 | $ | 2,339 | $ | 26,519 | |||||||
| 1 | Includes cumulative translation losses at March 31, 2013: $8 million (March 31, 2012: $8 million). |
| 2 | Includes additional paid-in capital as at March 31, 2013: $276 million (December 31, 2012: $276 million; March 31, 2012: $276 million) and convertible borrowings - equity component as at March 31, 2013: $38 million (December 31, 2012: $38 million; March 31, 2012: $38 million). |
| The notes to these unaudited interim financial statements, which are contained in the First Quarter Report 2013 available on our website are an integral part of these consolidated financial statements. | |
| CORPORATE OFFICE | TRANSFER AGENTS AND REGISTRARS | |
| Barrick Gold Corporation | CIBC Mellon Trust Company | |
| Brookfield Place, | c/o Canadian Stock | |
| TD Canada Trust Tower | Transfer Company Inc., | |
| Suite 3700 | as administrative agent | |
| 161 Bay Street, P.O. Box 212 | P.O. Box 700, Postal Station B | |
| Toronto, Canada M5J 2S1 | Montreal, Quebec, Canada H3B 3K3 | |
| Tel: (416) 861-9911 | or American Stock Transfer | |
| Fax: (416) 861-0727 | & Trust Company, LLC | |
| Toll-free throughout North America: | 6201 - 15 Avenue | |
| 1-800-720-7415 | Brooklyn, NY 11219 | |
| Email: investor@barrick.com | Tel: 1-800-387-0825 | |
| Website: http://www.barrick.com/ | Toll-free throughout North America | |
| Fax: (416) 643-5501 | ||
| SHARES LISTED | or 1-888-249-6189 | |
| ABX - The New York Stock Exchange | Email: inquiries@canstockta.com | |
| The Toronto Stock Exchange | Website: http://www.canstockta.com/ |
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in this First Quarter Report 2013, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intend", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold and copper or certain other commodities (such as silver, diesel fuel and electricity); changes in national and local government legislation, taxation, controls, regulations, expropriation or nationalization of property and political or economic developments in Canada, the United States and other jurisdictions in which the company does or may carry on business in the future; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects;
the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; adverse changes in our credit rating; the impact of inflation; fluctuations in the currency markets; operating or technical difficulties in connection with mining or development activities; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits; contests over title to properties, particularly title to undeveloped properties; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; changes in U.S. dollar interest rates; risks arising from holding derivative instruments; litigation; business opportunities that may be presented to, or pursued by, the company; our ability to successfully integrate acquisitions or complete divestitures; employee relations; availability and increased costs associated with mining inputs and labor; and; the organization of our previously held African gold operations and properties under a separate listed company. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion or copper cathode losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this First Quarter Report 2013 are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements.
The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Contact Information:
Senior Vice President
Investor Relations and Communications
(416) 309-2943
gpanagos@barrick.com
MEDIA CONTACT: Andy Lloyd
Director, Media Relations
(416) 307-7414
alloyd@barrick.com