Barrick operates mines and advanced exploration and development projects on five continents, and holds large land positions on some of the most prolific and prospective mineral trends. Our vision is to be the world’s best gold mining company by operating in a safe, profitable and responsible manner.
Disciplined capital allocation drives every decision we make. All investment alternatives compete for capital based on their ability to generate attractive risk-adjusted returns and free cash flow.
Execution is a key component of investor confidence. Barrick has an excellent track record in this area and has met its gold production guidance for 11 years in a row.
Our success depends on our ability to develop our resources responsibly and share the benefits of our business with local communities, governments and other stakeholders.
Our efforts have a common goal — ultimately we are focused on value creation for our shareholders through higher returns.
As at December 31, 2013, Barrick’s proven and probable mineral reserves were 104.1 million ounces of gold1, 888 million ounces of silver contained within gold reserves1, and 14.0 billion pounds of copper1.
Barrick produced 7.17 million ounces of gold in 2013 at all-in sustaining costs of $915 per ounce2 and adjusted operating costs of $566 per ounce2. Copper production in 2013 was 539 million pounds at C1 cash costs of $1.92 per pound2 and C3 fully allocated costs of $2.42 per pound2.
For 2014, Barrick expects to produce 6.0-6.5 million equity ounces at all-in sustaining costs (AISC) and adjusted operating costs of $920-$980 per ounce2 and $590-$640 per ounce2, respectively — the lowest cost guidance of its peer group. About 60% of 2014 production is expected to be generated by its five core mines at average AISC of $750-$800 per ounce2.
Copper production in 2014 is expected to be to 410-440 million pounds at C1 cash costs of $1.90-$2.10 per pound2 and C3 fully allocated costs of $2.50-$2.75 per pound2, respectively.
Barrick’s strategy prioritizes profitable production by focusing on maximizing risk-adjusted rates of return and free cash flow. All capital allocation options, including returns to shareholders, investment in organic growth, acquisitions, and other expenditures, are ranked and prioritized under our disciplined capital allocation framework, which includes the following key objectives:
Barrick continues to be recognized for its strong corporate responsibility culture. In 2013, the company was listed for the sixth consecutive year on the Dow Jones Sustainability World Index. We have also been ranked among the top 100 sustainable companies in the world by NASDAQ, and were named to Corporate Knights Global 100 list of the most sustainable companies.
Our CSR Advisory Board provides input to Barrick management on our corporate responsibility performance and advice on a broad range of these matters. We also continue to implement global human rights compliance programs aligned with the UN Guiding Principles on Business and Human Rights.