Our vision is the generation of wealth through responsible mining — wealth for our owners, our people, and the countries and communities with which we partner.
We aim to be the leading mining company focused on gold, growing our cash flow per share by developing and operating high quality assets through disciplined allocation of human and financial capital and operational excellence.
We are committed to a culture of partnership and the values underpinning such a culture: trust, transparency and shared responsibility and accountability. Our leaders must have deep emotional and financial ownership in the business.
The company is returning to its roots as a lean and nimble organization, with minimal bureaucracy. As in Barrick’s early days, a small head office manages the company with a balance of entrepreneurialism and prudence, focusing on only a few core activities: defining and implementing strategy, allocating human and financial capital, and fulfilling the obligations required of a public company. Leaders at the operational level have greater autonomy, responsibility, and accountability, functioning as business owners. Free from bureaucracy and middle management, they are focused on maximizing free cash flow, and the head office is focused on allocating that cash flow to maximize shareholder returns.
Barrick has mining operations in Argentina, Australia, Canada, Chile, Dominican Republic, Papua New Guinea, Peru, Saudi Arabia, United States and Zambia. More than 75 percent of the company’s gold production comes from the Americas region.
Production & Outlook
Barrick produced 6.12 million ounces of gold in 20151. All-in sustaining costs are expected to be $830-$870 per ounce.
Our five core mines in the Americas are expected to account for 60-65% percent of our production in 2015 at average all-in sustaining costs of $700-$725 per ounce. At two grams per tonne, these mines have an average reserve grade more than double that of our peer group average. They are among the most attractive assets in the entire gold industry, generating strong free cash flow even in today's gold price environment, while offering exceptional leverage to higher gold prices.
We have within our portfolio a number of the world's largest undeveloped gold deposits, providing a platform for long-term growth with substantial leverage to higher gold prices.
At the end of 2014, we reported gold reserves of 93.0 million ounces, and measured and indicated gold resources of 94.3 million ounces. Copper reserves were 9.6 billion pounds, and measured and indicated copper resources were 4.6 billion pounds.
- Figures are preliminary and reflect our expected 2015 results as of January 21, 2015. Actual reported fourth quarter and 2015 results are subject to management’s final review as well as audit by the company’s independent accounting firm and may vary significantly from those expectations because of a number of factors, including, without limitation, additional or revised information and changes in accounting standards or policies or in how those standards are applied. Barrick will provide additional discussion and analysis and other important information about its 2015 production levels when it reports actual results on February 17, 2016.
Disciplined Capital Allocation
Our approach to capital allocation ensures that all new investments align with our strategic focus and contribute to maximizing free cash flow in pursuit of industry-leading returns.
- Our focus is gold — we have no plans to diversify into other metals, and we have no plans to add to our existing copper position.
- We will focus our investments in our core regions. This means high-quality, long-life assets in attractive jurisdictions.
- We expect our portfolio to deliver a 10 to 15 percent return on invested capital through the metal price cycle and, as such, we will assess any individual project against our hurdle rate of 15 percent.
- We will defer, cancel, or sell projects that cannot achieve this target. In time, investments in new projects will compete with acquisitions and share buybacks, along with our objective of paying a dividend to our owners.
Peter Munk, Founder & Chairman Emeritus
Peter Munk is the Founder and Chairman Emeritus of Barrick Gold Corporation. Mr. Munk founded Barrick in 1983, building it into the world’s largest gold mining company, and one of Canada’s leading global corporations. Under Mr. Munk’s leadership, Barrick grew rapidly, achieving an industry leading position in just 25 years. His entrepreneurial spirit, combined with conservative fiscal management and strong technical expertise are core elements of the company’s original DNA.
As a business leader and philanthropist, Mr. Munk supports a range of charitable causes. He has made significant contributions to support world-class education, improve health care facilities and advance public policy. These include funding to establish a leading centre for international studies at the Munk School of Global Affairs at the University of Toronto, the Peter Munk Cardiac Centre in Toronto, and the Centre for Research, Innovation and Technology at Technion University in Israel.
Mr. Munk was made an Officer of the Order of Canada in 1993, and was promoted to Companion of the Order of Canada in 2009, the country’s highest civilian honour. In 2002, he was presented with the Woodrow Wilson Award for Corporate Citizenship, becoming the first Canadian to receive this prestigious award. Mr. Munk is a member of both the Canadian Mining Hall of Fame and the Canadian Business Hall of Fame and was a recipient of the Queen Elizabeth II Diamond Jubilee Medal in 2012. Mr. Munk has lived in Toronto, Canada for most of his life, having graduated in Electrical Engineering from the University of Toronto in 1952.