Barrick(GOLD) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - EBITDA increased by 30% with EBITDA margins growing both quarter on quarter and for the year [8] - Adjusted net earnings per share grew 50% year on year to $1.26 [8] - Operating cash flow for the quarter was up 18% to$ 1.4 billion, totaling $4.5 billion for the year, the highest since 2020 [11] - Free cash flow increased by 104% to$ 1.3 billion for 2024 [11] - The quarterly dividend was maintained at $0.10 per share, with$ 354 million in share repurchases in Q4, totaling nearly $500 million for the year [9] Business Line Data and Key Metrics Changes - Gold production increased by 15% quarter on quarter, with a 3% reduction in cost of sales and a 5% decrease in total cash costs [10] - Copper production at Lemona achieved a quarterly production record, meeting production guidance for both copper and gold [10] Market Data and Key Metrics Changes - The company reported a significant improvement in production and costs driven by a strong Q4 performance across its operations, particularly from tier-one assets [16] - The company achieved the highest net earnings in a decade, reflecting strong market conditions for gold and copper [11] Company Strategy and Development Direction - The company aims to deliver sustainable long-term value by focusing on owning the best gold and copper assets [4] - Barrick Gold is committed to sustainability and aims to be the best gold and copper producer globally [7] - The company is targeting a 30% growth in gold equivalent ounces by the end of the decade, supported by ongoing investments in key projects [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the commodity price outlook, particularly for gold and copper, in a geopolitically uncertain world [5] - The company is focused on maintaining a strong balance sheet and funding growth without excessive debt or share issuance [5][62] - Management acknowledged challenges in Mali but emphasized the importance of finding a sustainable solution for operations there [36][108] Other Important Information - The company reported three fatalities in 2024, which management deemed unacceptable, while also noting improvements in safety metrics [12][13] - Significant progress was made in reserve replacement, adding substantial new reserves from La Moana and Riccardeck projects [9] Q&A Session Summary Question: Reduction in CapEx - The majority of the CapEx reduction relates to the Lulu project, with some minor changes in Nevada [64][65] Question: Standby Costs at Lulu - The company is currently in a breakeven position at Lulu and has reallocated experienced operators to other operations [66][67] Question: Outlook for 2027-2029 - The outlook assumes that Lulu restarts, but the company can support its long-term plans without it [71][72] Question: PV Relocation Efforts - The completion of the dam is expected by 2029, with ongoing consultations and negotiations for family relocations [74][76] Question: Four Mile Project Processing Facilities - The project is moving towards a prefeasibility study, with discussions on processing flexibility ongoing [83][84] Question: Payments to Malian Government - A one-off payment of$ 84 million was made to the Malian government, with ongoing negotiations for a sustainable solution [98][99] Question: Strategic Asset Review - The Zaldivar asset is not considered core, but the company is focused on getting permitting in place [111][112]