Each one in plain English, with the numbers worked through for a shareholder.
31 Mar 2014resource reserve update▲ Good
Barrick filed an updated technical report, dated March 27, 2014, on the Lumwana copper mine in Zambia (the mine gained in the Equinox acquisition), with figures as of December 31, 2013. Reserves are now 538.8 million tonnes at 0.56% copper (about 6.62 billion pounds), up from 426.34 million tonnes at 0.52% in the 2012 report. The plan is to mine 537 million tonnes from 2014 to 2038, versus 2012 to 2032 before, with the 68,000 tonne-per-day plant unchanged. The text shown does not explain the increase.
Barrick filed an updated independent technical report, dated March 27, 2014, on the Pueblo Viejo mine in the Dominican Republic, with resources and reserves as of December 31, 2013. Barrick holds 60% and Goldcorp 40%. The report says commercial production was reached in January 2013, ramp-up to full production is expected in 2014, reserve mine life is 20 years, and the plant averaged 19,382 tonnes a day in December 2013 against a 24,000 design capacity. Measured and indicated resources (excluding reserves) are 15.0 million ounces of gold on a 100% basis. This updates the 2012 report, which gave an 18-year mine life; the reserve table is cut off in the text shown.
Barrick filed an updated independent technical report, dated March 27, 2014, on the Veladero mine in Argentina, replacing the 2012 report with figures as of December 31, 2013. Proven and probable reserves are now 186.6 million tonnes at 0.85 g/t gold (5.12 million ounces of gold), down from 436.5 million tonnes and 10.56 million ounces in the 2012 report. The mine is operated through the wholly owned subsidiary Minera Argentina Gold S.A., and mining is expected to average about 30 million tonnes a year for the next six years, versus the 2025 end date in the earlier report. The filing text shown does not explain the drop in reserves.
2 May 2013asset acquisition disposition● NeutralMajor
Barrick and its subsidiary Barrick North America Finance completed the sale of $3 billion of debt securities: $650 million of 2.50% notes due 2018, $1.5 billion of 4.10% notes due 2023, and $850 million of 5.75% notes due 2043 (the last issued by the subsidiary and guaranteed by Barrick). About $2 billion of proceeds will repay borrowings under the revolving credit facility maturing January 2018, and the rest goes to general corporate purposes, including possibly repaying the $500 million 6.125% notes due 2013. The revolver balance being repaid was originally borrowed for general corporate purposes and to repay existing debt.
Barrick completed the sale of $2.0 billion of debt securities: $1.25 billion of 3.85% notes due 2022 and $750 million of 5.25% notes due 2042. Proceeds are mainly to repay the two revolving credit facilities drawn for the 2011 Equinox acquisition, with the rest for developing mining projects and general corporate purposes. This continues the Equinox financing story, replacing short-term bank borrowings with longer-dated notes.
Barrick filed an independent technical report, dated March 16, 2012, on the Veladero gold and silver mine in San Juan Province, Argentina. At December 31, 2011, proven and probable reserves are 436.5 million tonnes at 0.75 g/t gold, containing 10.56 million ounces of gold and 197.7 million ounces of silver, with mining scheduled to conclude in 2025. Measured and indicated resources, excluding reserves, hold 462,000 ounces of gold. It is part of the same-day series of technical reports.
Barrick filed an independent technical report, dated March 16, 2012, on the Zaldívar copper mine in northern Chile, which is run by a company 100% owned by Barrick. At December 31, 2011, proven and probable reserves are 578 million tonnes at 0.518% copper (6.602 billion pounds of contained copper), with mining planned from 2012 to 2028. Measured and indicated resources, excluding reserves, are 124.8 million tonnes at 0.445% copper, with a further 37 million tonnes inferred. It is another in the batch of mine reports filed the same day.
Barrick filed an independent technical report, dated March 16, 2012, on the Lagunas Norte gold mine in Peru, which is wholly owned through its subsidiary Minera Barrick Misquichilca. Proven and probable reserves at December 31, 2011 are 194.5 million tonnes at 0.98 g/t gold, containing 6.15 million ounces of gold and 23.9 million ounces of silver. Mining is scheduled to run for about eight more years, with operations ending in 2021. A 2.51% royalty is paid to the Peruvian state company Activos Mineros.
Barrick filed an independent technical report, dated March 16, 2012, on the Porgera mine in Papua New Guinea. Barrick operates it and holds 95% through a subsidiary, with Mineral Resources Enga Limited holding 5%. The mine produced about 526,000 ounces of gold in 2011 on a 100% basis. Measured and indicated resources (excluding reserves) are 2.03 million ounces of gold, and inferred resources are 3.09 million ounces, all stated on a 100% basis rather than Barrick's 95% share.
Barrick filed an independent technical report, dated March 16, 2012, on the Pueblo Viejo project in the Dominican Republic, supporting its resource and reserve figures as of December 31, 2011. Barrick controls 60% and Goldcorp holds 40%. The report describes a 24,000 tonne-per-day mining and processing facility with two open pits (Moore and Monte Negro), an 18-year mine life and a forecast 36-year processing life because lower-grade ore is stockpiled. The visible text gives no reserve totals.
Barrick filed an independent technical report, dated March 16, 2012, on the Cortez operations in Nevada, which support its resource and reserve figures as of December 31, 2011. Cortez is a joint venture between two wholly owned Barrick subsidiaries, Barrick Cortez Inc. (60%) and Barrick Gold Finance Inc. (40%), so Barrick owns all of it. The visible text gives no resource or reserve totals. It is one of several Nevada and international mine reports filed the same day, like the Goldstrike report.
Barrick filed an independent technical report on its Goldstrike mine in Nevada, prepared for Barrick and Franco-Nevada. The open pit plan is 47.6 million tons of ore at 0.108 oz/ton from 2012 to 2025. Underground reserves of 11.9 million tons at 0.255 oz/ton are projected to sustain operations until 2020. Measured and indicated resources, excluding reserves, total about 1.975 million ounces of gold.
Barrick filed an independent technical report on the Lumwana copper mine in Zambia, the mine gained in the Equinox acquisition. As of December 31, 2011, it reports 426.34 million tonnes of reserves at 0.52% copper (about 4.9 billion pounds of contained copper). The current plan mines 412 million tonnes of ore from 2012 to 2032 at a 68,000 tonne-per-day facility.
Barrick filed its business acquisition report for Equinox Minerals, which it bought at C$8.15 per share. It reached about 83% on June 1, 2011 and 100% by July 20, 2011, for roughly $7,482 million in cash. It owns the Lumwana copper mine in Zambia and the Jabal Sayid copper project in Saudi Arabia. The purchase was funded from cash and about $6.5 billion of new debt: a new $2 billion credit facility (with $1 billion drawn), $1.5 billion drawn on an existing facility, and $4.0 billion of notes due 2014 to 2041. Barrick expects Jabal Sayid to start production in the second half of 2012.
Barrick filed a technical report on its Pascua-Lama project on the Chile-Argentina border, dated March 31, 2011. It states expected pre-production capital of $3.3-$3.6 billion, first production in the first half of 2013, and average annual gold output of 750-800,000 ounces over the first five full years at total cash costs of $20-$50 per ounce. These figures rest on stated price assumptions of $1,100 gold, $16 silver and $85 oil.
Barrick Gold said it took up about 40.7 million Arizona Star Resource Corp. shares, over 94% of the company on a fully diluted basis, so its takeover offer is concluded. Barrick intends to buy the remaining shares by compulsory acquisition. Arizona Star owns 51% of the Cerro Casale gold and copper deposit in Chile; Kinross owns the other 49%.
