Barrick Sells 100% of Production at Spot Prices for Most of First Quarter 2003

April 28, 2003

New CEO Outlines Forward Sales Parameters and Reduction of 1.8 million Ounces


All amounts in United States dollars

Barrick Gold Corporation today released its first quarter results in which it outlined activity in its forward sales program for the quarter, the first ever in which spot gold prices exceeded the Company’s contract price. As a result, Barrick exercised its option to sell production at the higher spot price. The program’s flexibility allowed Barrick to fully participate in rising gold prices, which ranged from a high of $389 per ounce to a low of $326 during the quarter, averaging $352 per ounce. The Company realized an average price for its gold sales of $355 per ounce, based on production sold at spot prices through mid-March, as well as deliveries into the program in late March as gold prices declined.


“For the first time in 15 years we were able to demonstrate the flexibility of our forward sales program, selling 100% of production through mid-March at higher spot gold prices, and then – as gold prices receded in mid-March - selling 100% of our production at our higher contract price,” said Greg Wilkins, President and Chief Executive Officer.

(please see PDF for table)
$358 $357
January February March
First Quarter Gold Sales 2003 – US$/oz
Average Spot Gold Price
Average Barrick Realized Price

“We enjoyed full participation as gold went to its six-year high,” said Mr. Wilkins, “and we got our ‘contracted floor price protection’ when the spot price fell below our contract price.”


“Our program is working as designed and this quarter enabled us to demonstrate the unique flexibility of our forward sales program,” said Mr. Wilkins. “We will continue to enjoy the financial benefits of the program, however, generally we would like to see the program both smaller and simpler: Smaller, as the program today is about 35% of reserves at our operating mines, where ideally the upper parameter would be about 20%, or about two years of production; and simpler, by focusing on ‘plain vanilla’ spot deferred contracts -- and eliminating variable price sales contracts.” Emphasizing that these parameters represent a guideline, with the actual level determined by market conditions, Mr. Wilkins said that the Company may opportunistically reduce the size of the program on gold price dips but also add to the program on gold price spikes in an effort to continue to improve the average price of the contracts. “Overall, we plan to use time and gold’s volatility to reduce the size of the program - at minimal or no cost.”


In line with those objectives, the Company reduced its overall forward sales position from 18.1 million ounces to 17.3 million ounces during the first quarter, and by an additional 1 million ounces to 16.3 million ounces by the end of April, bringing the total reduction year-to-date to 1.8 million ounces. And the Company expects to make further reductions to the program, particularly on gold price dips, as the year progresses. In total, the program has declined by one third over the past year from over 24 million ounces at March 31, 2002.

“With the lowest interest rates in 40 years, our strong financial position and our current positive outlook for the gold price, a smaller, simpler program makes sense in today’s environment,” added Mr. Wilkins.

Barrick is one of the world’s leading gold producers and trades under the ticker symbol ABX on the Toronto, New York, London and Swiss stock exchanges and the Paris Bourse.


Richard Young Vincent Borg

Vice President, Vice President,
Investor Relations Corporate Communications
Tel: (416) 307-7431 Tel: (416) 307-7477

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Certain statements included herein, including those regarding levels of forward sales, constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management are inherently subject to significant business, economic and competitive uncertainties and contingencies. We caution you that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from our estimated future results, performance or achievements expressed or implied by those forward-looking statements and our forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold or certain other commodities and currencies; changes in interest rates or gold lease rates; and legislative, political or economic developments in the jurisdictions in which Barrick carries on business. These factors are discussed in greater detail in Barrick’s most recent Form 40-F/Annual Information on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

Barrick expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise.


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