UPDATE: Barrick Selects Nevada Joint Venture Name | Mining

Bristow said in his report that "the organizational structures are being finalized and we are working with Newmont to realize the synergies and cost reduction opportunities offered by the joint venture, which is expected to be completed by the end of the second quarter" .

Barrick will operate the joint venture and hold 61.5%. Newmont will hold 38.5% and will also be represented on the joint venture advisory committees. The joint venture covers operating mines owned by the two Nevada companies.

Even though the Barrick-Newmont joint venture was about to close, Bristow said that a new opportunity was coming up with a "very important intersection" in a drill of his McCoy Cove exploration joint venture with Premier Gold Mines Ltd. south of Battle Mountain. The prime minister announced the discovery of high-grade gold on April 29.

"Our geologists are really excited," he said in the results teleconference. "It reinforces the potential of Nevada."

According to a map of what Nevada Gold Mines will cover, McCoy Cove is included.

The new name of the joint venture was included in Barrick's earnings report in the first quarter of this year, the first after the January 1 merger with Randgold Resources. The company reported declining net income, but adjusted net income was better than 2018 and exceeded analysts' forecasts.

The Toronto-based company reported net income of $ 111 million, or 6 cents a share, compared with $ 158 million, or 14 cents a share, for the 2018 quarter, and adjusted net income of $ 184 million. or 11 cents per share, compared to $ 170 million last year, 15 cents per share.

Analysts were expecting 9 cents per share instead of 11 cents for adjusted net earnings.

Bristow said during the conference call that first-quarter profits were skewed by Randgold's merger, but "we've certainly made a good start". He said, however, that the speed of the merger adjustments was not essential to play. the long game. Do not look for instant gratification or easy picking. "

Barrick shares closed on the New York Stock Exchange at $ 12.57, down 15 cents.

Barrick also declared a 4 cents dividend payable on June 17 to shareholders of record on May 31. Graham Shuttleworth, Barrick's executive vice president and chief financial officer, said the dividend reflected Barrick's profitability and financial strength and was consistent with its commitment to shareholders for the $ 6.1 billion acquisition of Randgold.

Gold production totaled nearly 1.37 million ounces during the quarter, up from nearly 1.05 million ounces in the 2018 quarter, including 575,000 ounces gold in Nevada, compared with 517,000 ounces.

Crescent Valley's Cortez mine produced 262,000 ounces, compared to 285,000 ounces for the 2018 quarter, while Goldstrike north of Carlin produced 233,000 ounces, compared with 186,000 the previous year in the first quarter. which is 67% more than the 46,000 ounces of the 2018 quarter.

Newmont owns a 25% interest in Turquoise Ridge.

Bristow said at the teleconference that Barrick had abandoned the Barrick Nevada practice of consolidating Cortez and Goldstrike production.

Barrick announced that the construction of a third well was proceeding as planned at Turquoise Ridge.

Barrick also said that the Fourmile gold discovery, which is expected to be consolidated with the Goldrush project near Cortez, will be profiled as the next mega mine in the Nevada mine portfolio. Exploration drilling resumed in January.

"Fourmile and Goldrush are classic Carlin-style deposits that have made this region one of the most promising in the world," said Rob Krcmarov, Barrick's Executive Vice President, Exploration and Growth.

"Turquoise Ridge, adjacent to the Twin Creeks mine and included in the joint venture, is also expected to become a Tier 1 asset. We are confident that Nevada still has tremendous potential for major discoveries," he said.

The Barrick-Newmont joint venture does not include Fourmile, while the latter continues its exploration work to determine if the deposit needs to be mined, but Bristow said it would be possible later on to have the deposit. integrate into the joint venture.

One of the synergies sought for the joint venture is the ability to modify underground activities to reduce costs. Bristow said Barrick and Newmont agreed that additional geotechnical work was needed, but that there was potential for open long-hole chambers.

The cost of sales for the company as a whole was $ 947 per ounce of gold, compared to $ 878 per ounce last year, and total cash costs were $ 631 per ounce. versus $ 573 for the 2018 quarter. Nevada's cost of sales was $ 780 compared to $ 829 last year and cash costs were $ 542 compared to $ 533 for the 2018 quarter.

Barrick announced that its realized price for gold was $ 1,307 for the 2019 quarter, compared to $ 1,223 an ounce last year.

Copper production totaled 106 million pounds for the quarter, up from 85 million pounds in 2018.

Barrick is in a phase of action that began with the contract with Randgold and continues with the joint venture agreement between Barrick and Newmont.

"We have made a lot of progress in integrating organizations, streamlining processes, and ensuring that all sites have the geological, operational, and technical capabilities to meet their business goals," Bristow said. merger with Randgold.

According to the report, one of the aspects of the integration was to decide which assets will be sold by Barrick because they do not meet the company's criteria as gold producers, but the company is not ready to name the mines in which countries.

He said the market would be informed when the time comes, but Barrick plans to work with stakeholders and countries where mines could be sold. The hope is to raise $ 1.5 billion through asset sales, Bristow said during the earnings call.

"Given our strong operational performance for the first quarter, Barrick is on track to achieve its objectives for the year," said Bristow. "Given the shortage of good assets and the sector's under-investment in its own future, we believe we are well positioned as a value leader in the sector."

He added that the Barrick and Randgold merger process included new leaders. a technical, financial, commercial, communication and lean administration team; and streamline the structure of the company. The Toronto office is now on one floor with about 70 people.

"It's important to note that this is not a cost reduction exercise. It has been designed to ensure that the best people are in the right places, "said Bristow in his report on the results.

Looking ahead, Barrick said the company is still expecting gold production of 5.1 million to 5.6 million ounces for this year.