Barrick Gold Corporation, based in Toronto, Canada, is the largest gold mining company in the world. The company has many advanced exploration and development projects located across five continents.
Barrick is placed amongst the top gold producers with peers, such as Newmont (based in the United States) and AngloGold Ashanti (based in South Africa). The company produced 4.8 million ounces of gold and 457 million pounds of copper in 2020. Barrick had 68 million ounces (oz) of proven and probable gold reserves and 13 billion pounds of copper reserves at the end of 2020. The company generated total revenues of $12,595 million in 2020, up 30% year over year.
The company’s strategy to create value for its shareholders is focused on the following key areas:
• Maximizing the benefits of rising metal prices by meeting operational and financial targets.
• Increasing gold and copper reserves and production through exploration and selective acquisitions.
• Maximizing the value of its existing mines and properties by leveraging its expertise and regional infrastructure.
• Growing production by investing in and developing high return projects.
• Continuing to improve corporate social responsibility practices to maintain and strengthen its incense to operate.
• By executing on this strategy, the company expects to increase earnings and cash flow and enhance its shareholders’ leverage to metal prices.
In September 2018, Barrick entered into a share-for-share merger agreement with Randgold Resources Limited. The merger was successfully completed on Jan 1, 2019. The deal formed an industry-leading gold company and strengthened Barrick’s position.
Post-merger, Barrick has the ability to generate strong cash flow to support robust investment and return cash to shareholders. Higher operating metrics, including lowest total cash cost position as well as highest adjusted EBITDA margin are likely to support sustainable investment in growth and shareholder returns.