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.
Those who founded and first led the company were committed to a culture of partnership and the values underpinning such a culture: trust, transparency, shared responsibility and accountability, and a sense of emotional and financial ownership.
The company is returning to its roots as a lean and nimble organization, with minimal bureaucracy. 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
In 2014, Barrick produced 6.25 million ounces of gold at all-in sustaining costs of $864 per ounce.
Our five core mines in the Americas are expected to account for 60 percent of our production in 2015 at average all-in sustaining costs of $725-$775 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.
Barrick's gold production guidance for 2015 is 6.2-6.6 million ounces at all-in sustaining costs of $860-$895 per ounce.
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.
Leaders are Owners
Going "back to the future" demands that our leaders be owners. In Barrick’s early years, the company’s founder, Peter Munk, led a small group of exceptional people who worked together as a team. They knew each other intimately, and they trusted each other completely. They shared responsibility and accountability for the company’s success and for its setbacks. Their personal wealth was tied to the company’s fortunes, which gave them every incentive to work together as efficiently and effectively as possible.
To accelerate emotional and financial ownership among our leaders today, we have extended our innovative partnership plan to 35 leaders across the business, from mine managers and country directors to technical experts and functional leaders in the field, and other senior leaders at our head office. Each year, these leaders will be graded on their collective performance, as measured against a transparent long-term scorecard disclosed to shareholders in advance. A significant portion of their total compensation, if earned, will be long-term in nature, awarded in units that convert into Barrick common shares which cannot be sold until an individual retires or leaves the company. This plan will grow to include new partners over time, ensuring the interests of our leaders and our shareholders are one and the same.
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.
- First gold pour at Pueblo Viejo, Dominican Republic, in August 2012.
- The process plant at Pueblo Viejo.
- The processing facilities at Cortez, Nevada.
- The Lagunas Norte mine in Peru has produced more than 50 percent above feasibility expectations and has done so in every year since it entered production.
- Lab technician Maria Louise Rodriguez works with ionic chromatography equipment at Pueblo Viejo.
- Pueblo Viejo's state-of-the-art processing facility houses four of the largest autoclaves in the world.
- Since acquiring Pueblo Viejo, Barrick has revegetated 3,500 hectares of land. Concurrent reclamation uses biodegradable coconut fiber mats from a local women's cooperative to control soil erosion.
- The dramatic operational turnaround at Lumwana is a major accomplishment for the copper group. The team assessed a number of options to improve cash flow and ultimately implemented a new mine plan which enabled the elimination of a large mining contractor. Contractor costs were further reduced by using in-house maintenance. Production has increased and costs have declined substantially since the first quarter of 2013.
- Copper cathodes from the Zaldívar mine in Chile are prepared for rail shipment to the port at Antofagasta.
- Barrick's Goldrush project in Nevada was the recipient of PDAC's prestigious Thayer Lindsley award for an international mineral discovery. A pre-feasibility study is expected to be completed by mid-2015.
- Barrick is continuing its efforts to use more renewable energy, building on the success of our Punta Colorada wind farm in Chile and our solar farm in Nevada.
- During 2012, Barrick reduced its Total Reportable Injury Frequency Rate to 0.76, an 18 percent reduction from 0.92 achieved in 2011. Across the company, more diligent implementation of safety standards is making a difference on the front line.
- Barrick maintains emergency response teams at all its sites around the world. These highly trained professionals are the first responders to any mine emergency, and often assist communities in times of need.
- Barrick employees worldwide participate in ethics training, including at the Pascua-Lama project in Argentina.