Barrick Gold’s (NYSE: GOLD) (TSX: ABX) North American operations have helped deliver a strong performance in Q4.
The North America, Africa and Middle East operations each met their production guidance for the year, while Barrick also advanced the Fourmile project in Nevada.
Year-on-year operating cash flow increased by 20% to US$4.49 billion (C$6.36b) and, driven by stronger earnings, free cash flow more than doubled to US$1.32b (C$1.87b).
Gold and copper production up
Barrick recently reported that its gold production increased by 15% and copper production by 33% compared with Q3, to meet annual guidance.
The company’s 2024 full year result included a 69% increase in net earnings to US$2.14b (C$2.98b), a 51% increase in adjusted net earnings to US$2.21b (C$3.15b) and a 30% rise in attributable EBITDA to US$5.19b (C$7.36b)—the highest in over a decade.
“Barrick remains focused on sustainable value creation for all our stakeholders and, as our results today clearly demonstrate, we have the asset quality, balance sheet strength and organic growth projects to deliver on our vision well into the future,” Barrick president and chief executive Mark Bristow said.
Fourmile PFS program
Amongst the “growth” project highlights for the year was the move to a pre-feasibility study (PFS) at Fourmile on the back of a successful drilling program in Nevada, which have now been incorporated into the preliminary economic assessment.
Mr Bristow said the results highlighted an impressive resource base and promising economic indicators positioning Fourmile as a world-class gold deposit comparable only to the original Goldstrike deposit that was the foundational asset of Barrick.
“The current resource represents approximately one-third of the total orebody defined by drilling to date,” he said.
“This supports substantial growth potential, with increasing grades as drilling progresses northward.”
‘Compelling economic projections’
“Economic projections for Fourmile are equally compelling, whereby the preliminary economic assessment demonstrates Fourmile’s potential to become a Tier One mine at comparable annual mining rates and costs to the current Goldrush mine plan.”
“These results have encouraged Barrick to advance the project through a three-year PFS program.”
Barrick plans to commence the PFS drilling, which will provide the foundational study data to underpin the planned Bullion Hill northern access portal, at the end of the first quarter of 2025.
Goldrush mine synergies
The upcoming work will also explore materials handling options and investigate the synergies Fourmile could bring to both the existing Goldrush mine and associated processing facilities.
Barrick executive Simon Bottoms said geotechnical drilling and ongoing hydrological measurements had confirmed more favourable ground conditions with lower permeability than other typical Carlin-style deposits.
“This has the potential to reduce the dewatering requirements during mine development and allows for stope heights to be increased up to 25 metres high compared to 15m within the neighbouring Goldrush mine,” he said.
“Metallurgical test work has demonstrated compatibility with existing facilities, offering processing flexibility through both autoclave and roaster facilities.”
“The initial mine design incorporates three semi-independent production zones, providing operational flexibility and potential for increased production rates.”