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Researched by Industrial Info Resources (Sugar Land, Texas)--Barrick Gold Corporation (NYSE:GOLD) (Toronto, Canada) recently reported an increase in gold production for the third quarter--and expects a strong finish to 2021--due to restored operations at part of its major U.S. operation in Nevada, and a strong showing in its Africa, Middle East and Latin America regions.
Industrial Info is tracking 34 projects worth $3.5 billion attributed to Barrick globally that have a medium (70% to 80%) to high (81% to 99%) likelihood of moving forward as scheduled, including 19 projects worth $2.2 billion in its Nevada operation.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a full list of Barrick projects worldwide.
Barrick produced 1.09 million ounces of gold in the third quarter, up 5% from the 1.04 million in the second quarter, according to the company's most recent earnings report. Of this, 495,000 ounces was attributed to Nevada Gold Mines (NGM)--a joint venture with Newmont Corporation (NYSE:NEM) (Denver, Colorado) that combines their mining operations, assets, reserves and personnel assets. Barrick is the sole operator.
Nevada Gold Mines' Carlin Goldstrike gold mine and mill--which led the operation in third-quarter gold production (209,000 ounces)--restored full operations following a mechanical failure at the end of May, setting Barrick up for strong performance in the fourth quarter.
The NGM's highest-valued project is the estimated $1 billion Goldrush underground gold mine in Crescent Valley, Nevada, now in its early planning stage. In August, the U.S. Bureau of Land and Mines issued a notice of intent on the project, and Barrick expects to prepare a draft environmental impact statement for publication in January 2022. Construction of surface facilities is expected to begin in 2023. The mine would produce 500,000 ounces per year of gold over a 16-year mine life, and truck oxide ores to its adjacent Cortez gold mine complex near Crescent Valley. Subscribers to Industrial Info's GMI Project Database can click here for a detailed project report on the Goldrush mine.
"The combination of the Nevada assets of Barrick and Newmont has unlocked the vast geological potential of this mineral-rich region by consolidating mines, processing facilities and landholdings. Anchored by the massive Carlin and Cortez mines, NGM is building up the third Tier One asset, Turquoise Ridge, while Goldrush, a world-class project in its own right, heads up a long pipeline of quality prospects," Chief Executive Officer Mark Bristow said in August while updating local media and community leaders on the NGM operation.
A Tier One gold mine has a stated life in excess of 10 years, annual production of at least 500,000 ounces and total cash costs per ounce over the mine life that are in the lower half of the industry cost curve, Bristow said in Barrick's second-quarter earnings press release.
In the third quarter, the company commissioned a heap leach project (Phase 6) at one of its major mines in Latin America: the Veladero mine in Argentina. The project greatly improved the mine's performance, which saw a 55% increase in production from the prior quarter.
According to Bristow, the company has invested $219 million in the Veladero mine over the last two years in order to make it another Tier One mine. A $140 million Phase 7 expansion project is expected to kick off in December, with completion in September 2022. It will re-establish the conveyor system from the crusher to the leach pads to reduce haul distances and greenhouse (GHG) emissions. The company has set an emission-reduction target of at least 30% by 2030. Subscribers can click here for the project report.
Barrick expects to maintain its 2021 capital expenditures of between $1.8 billion and $2.1 billion. Driven by lower gold prices, third-quarter net earnings of $347 million were a massive swing from the $882 million reported in third-quarter 2020; total sales were down about 20% from third-quarter 2020.
According to a recent report by the World Gold Council (WGC) (London, U.K.) on third-quarter gold demand trends, global demand in the quarter dropped 7% year over year. This was largely due to outflows in gold-related exchange-traded funds (ETF), according to the organization. However, the WGC noted that gold prices rallied 1.5% in October thanks to an expected inflation surge and a weaker U.S. dollar.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Industrial Info is tracking 34 projects worth $3.5 billion attributed to Barrick globally that have a medium (70% to 80%) to high (81% to 99%) likelihood of moving forward as scheduled, including 19 projects worth $2.2 billion in its Nevada operation.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a full list of Barrick projects worldwide.
Barrick produced 1.09 million ounces of gold in the third quarter, up 5% from the 1.04 million in the second quarter, according to the company's most recent earnings report. Of this, 495,000 ounces was attributed to Nevada Gold Mines (NGM)--a joint venture with Newmont Corporation (NYSE:NEM) (Denver, Colorado) that combines their mining operations, assets, reserves and personnel assets. Barrick is the sole operator.
Nevada Gold Mines' Carlin Goldstrike gold mine and mill--which led the operation in third-quarter gold production (209,000 ounces)--restored full operations following a mechanical failure at the end of May, setting Barrick up for strong performance in the fourth quarter.
The NGM's highest-valued project is the estimated $1 billion Goldrush underground gold mine in Crescent Valley, Nevada, now in its early planning stage. In August, the U.S. Bureau of Land and Mines issued a notice of intent on the project, and Barrick expects to prepare a draft environmental impact statement for publication in January 2022. Construction of surface facilities is expected to begin in 2023. The mine would produce 500,000 ounces per year of gold over a 16-year mine life, and truck oxide ores to its adjacent Cortez gold mine complex near Crescent Valley. Subscribers to Industrial Info's GMI Project Database can click here for a detailed project report on the Goldrush mine.
"The combination of the Nevada assets of Barrick and Newmont has unlocked the vast geological potential of this mineral-rich region by consolidating mines, processing facilities and landholdings. Anchored by the massive Carlin and Cortez mines, NGM is building up the third Tier One asset, Turquoise Ridge, while Goldrush, a world-class project in its own right, heads up a long pipeline of quality prospects," Chief Executive Officer Mark Bristow said in August while updating local media and community leaders on the NGM operation.
A Tier One gold mine has a stated life in excess of 10 years, annual production of at least 500,000 ounces and total cash costs per ounce over the mine life that are in the lower half of the industry cost curve, Bristow said in Barrick's second-quarter earnings press release.
In the third quarter, the company commissioned a heap leach project (Phase 6) at one of its major mines in Latin America: the Veladero mine in Argentina. The project greatly improved the mine's performance, which saw a 55% increase in production from the prior quarter.
According to Bristow, the company has invested $219 million in the Veladero mine over the last two years in order to make it another Tier One mine. A $140 million Phase 7 expansion project is expected to kick off in December, with completion in September 2022. It will re-establish the conveyor system from the crusher to the leach pads to reduce haul distances and greenhouse (GHG) emissions. The company has set an emission-reduction target of at least 30% by 2030. Subscribers can click here for the project report.
Barrick expects to maintain its 2021 capital expenditures of between $1.8 billion and $2.1 billion. Driven by lower gold prices, third-quarter net earnings of $347 million were a massive swing from the $882 million reported in third-quarter 2020; total sales were down about 20% from third-quarter 2020.
According to a recent report by the World Gold Council (WGC) (London, U.K.) on third-quarter gold demand trends, global demand in the quarter dropped 7% year over year. This was largely due to outflows in gold-related exchange-traded funds (ETF), according to the organization. However, the WGC noted that gold prices rallied 1.5% in October thanks to an expected inflation surge and a weaker U.S. dollar.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
