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.
Barrick has mining operations in Argentina, Australia, Canada, Chile, Dominican Republic, Papua New Guinea, Peru, Saudi Arabia, the United States, and Zambia. More than 75% of our gold production comes from the Americas region.
The Company was founded in 1983 by Canadian entrepreneur and philanthropist Peter Munk, and is headquartered in Toronto, Canada. Barrick’s shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol ABX.
We have intentionally eschewed the traditional hierarchical organizational model, in favor of an authentic partnership model, because we believe that complex matters are better understood and managed by a team of partners—especially in assessing and reducing risk.
More on our partnership
As part of our return to a partnership culture, we are making our leaders owners. We have introduced, and shared with our investors, a collective scorecard that uses long-term metrics which are tied to our long-term strategy, and which we also believe are important to the health and success of our business at all points in time. All our leaders rise and fall with the owners on the basis of long-term performance.
Over time, all our partners will become meaningful owners whose net worth is tied to the shares of Barrick. Our long-term incentives, if earned, are awarded in the form of shares that cannot be sold until an individual retires or leaves the Company. These are existing shares that Barrick purchases on the open market.
The base case for our business involves the pursuit of three strategic goals over the next five years.
More on our strategy
The first is a profound understanding of and commitment to the idea that in the twenty-first century, our core business is building partnerships of real depth and trust with host governments, local communities, NGOs, indigenous people, and others. At their invitation and with their support, we take their minerals out of their ground, and in so doing create wealth for all.
The second goal is to produce industry-leading margins by operating in a way that is gold-price agnostic. Whatever the gold price, we are constantly pushing ourselves to reduce our costs by being the first for productivity and efficiency. That means a continuous, relentless cycle of improvement and innovation, such that we will weather gold price volatility, while remaining focused on our ultimate objective of growing free cash flow per share.
The third goal is superior portfolio management. We measure our production in quality, not quantity. While we produce fewer ounces than we have in recent years, we generate significantly more free cash flow per share; indeed, in 2015 we produced free cash flow for the first time in four years. We will prioritize growing free cash flow over growing ounces. And we will always assess existing and new opportunities, both internal and external, with that goal in mind.
Capital Allocation Priorities
Our first priority is to maintain a robust balance sheet that can withstand gold price volatility.
More on capital allocation priorities
In 2016, we will further reduce our debt by $2 billion, to a total of $8 billion. Over the medium-term, our goal is to reduce total debt to less than $5 billion—and we envision a future Barrick with no debt whatsoever. Of course, we will always pursue debt reduction with discipline and take only those actions that make sense for our business, on terms we consider favorable to our shareholders.
Our second priority is disciplined re-investment into existing and new projects that generate or grow free cash flow per share and ensure the long-term sustainability of those cash flow streams.
Third is returning cash to shareholders prudently and responsibly. We are intent on rebuilding trust with our fellow owners, which demands clarity and transparency so that you can predict what we are going to do. This includes the way in which we approach our dividend. At the moment, debt reduction must take priority, but over time we will emphasize returns to shareholders ahead of other, less-effective uses of capital.
We will, over time, prove to you that we are not only discerning sellers—as we began to demonstrate in 2015 with the sale of various interests in seven of our assets, accomplished in difficult markets. We will demonstrate that we are also discerning buyers, capable of consistently creating value per share for our owners.
Innovation and the Future of Mining
We will, over time, transform Barrick into a mining company for this century by reconceptualizing the essence of how one succeeds in this industry. We have intentionally chosen a model that is distinct from our peers.
More on innovation and the future of mining
We are mindful of John Templeton’s admonition, "If you want superior performance, you must be different." We agree. It is who we are today and it was always Barrick's original DNA.
We will embody that DNA in a way that is all the more relevant by making the best use of technology and data, embedding it into our every fiber. It will make us better, it will make us faster—and it will make us safer. We will do this carefully, deliberately, and with an uncompromising eye on return on invested capital. But we will do it. In the end, we want to be among the very best twenty-first century companies, not just in our industry, but in any industry.
In the fullness of time, we believe Barrick will be both the lowest-risk investment of its kind, and the one creating the most value.
The gold mining sector is ripe for disruption, and at Barrick we are restless. We will be a twenty-first century mining company—generating wealth for our owners, our people, and the countries and communities with which we partner—with conviction and the courage to be different.
Production and Cost Outlook
Our five core mines in the Americas are expected to account for about 70% of our total production in 2016, at a cost of sales applicable to gold of $790-$840 per ounce, and all-in sustaining costs1 of $620-$650 per ounce. With an average reserve grade of 1.88 grams per tonne—more than double that of our peer group average—they are among the most attractive assets in the entire gold industry.
More on production and cost outlook
We produced 6.12 million ounces of gold in 2015, at a cost of sales of $5.9 billion, and all-in sustaining costs of $831 per ounce.
For 2016, our total gold production guidance is 5.25-5.55 million ounces, at a cost of sales of $800-$850 per ounce, and all-in sustaining costs of $740-$775 per ounce. Copper production guidance is 380-430 million pounds, at a cost of sales of $1.35-$1.55 per pound, and all-in sustaining costs of $2.00-$2.20 per pound.1
At the end of 2015, we reported gold reserves of 91.9 million ounces (2.16 billion tonnes, grading 1.32 grams per tonne).2 Measured and indicated gold resources were approximately 79.1 million ounces (1.4 billion tonnes, grading 1.84 grams per tonne).2
Our gold production guidance for 2017 is 5.0-5.5 million ounces, at all-in sustaining costs of $740-$790 per ounce. For 2018, our gold production guidance is 4.6-5.1 million ounces, at all-in sustaining costs of $725-$775 per ounce.
Our aspiration is to achieve all-in sustaining costs below $700 per ounce by 2019.
Peter Munk, Founder and 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.
More on Peter Munk
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.