Barrick to update 2019 production target following Newmont JV

Image: Barrick

Barrick is in the process of revising its 2019 gold production guidance following the execution of its recent joint venture (JV) with Newmont Mining.

The Barrick–Newmont JV has the potential to unlock 4.1 million ounces across the companies’ operations in Nevada, United States, more than three times the next largest operation, Barrick said in a statement.

Barrick’s 2019 gold production guidance is currently set at 5.1–5.6 million ounces at cost of sales of $US880–940 ($1245–1329) per ounce.

The company expects its five-year gold production and cost outlook to be within that range, while its current cash costs of $US650–700 per ounce and all-in sustaining costs of $US870–920 per ounce are expected to decline over that period to below the bottom of these ranges.

“We are very excited about the prospects of the new Barrick,” Barrick president Mark Bristow said.

The merger with Randgold Resources has created significant value for shareholders, and the JV with Newmont is yet another catalyst which we believe will create further value for our shareholders and stakeholders.”

The Barrick–Randgold merger has already created over $US5 billion of shareholder value, and the Nevada JV will unlock a further estimated $US5 billion of real synergies, Barrick stated in its roadshow presentation.

“We are engaged in reviewing the impact of the new JV on our guidance for both 2019 and the five-year outlook, and expect to provide an update during the year,” Bristow concluded.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.