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Barrick up on higher output as automation advances at Nevada

Mark Bristow

Mark Bristow

Photo by Reuters

12th August 2019

By: Martin Creamer

Creamer Media Editor

     

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JOHANNESBURG (miningweekly.com) ­– Blast-hole drilling is being carried out remotely at Nevada Gold Mines, which is close to being an automated mine in sections.

Nevada Gold Mines is a joint venture between Barrick Gold Corporation (61.5%) and Newmont Goldcorp Corporation (38.5%). In the first half of 2019, Barrick merged with Randgold, Newmont acquired Goldcorp, and then Barrick and Newmont pooled their Nevadan assets to create Nevada Gold Mines.

“You can drill from the office,” president and CEO Dr Mark Bristow told Mining Weekly Online on Monday, when Barrick reported second-quarter production of 1.35-million ounces, with profit rising 27% on the higher output.

“We’ve pretty much got a fully automated mine in sections. We’ve got trucks in Goldstrike that are automatic and they are operating amongst manned trucks,” he said.

With ten underground mines, 12 opencast mines, two autoclave facilities, two roasting facilities, four oxide mills and five heap leach facilities, Nevada Gold Mines is the world’s largest gold mining complex, with a production capacity of 3.5-million to four-million ounces a year. Nevada Gold Mines is expected to yield an addition 100 000 oz this year.

“We’re doing non-blast remote mining with self-miners. Most of our jumbos now drill through the shift change automatically, which is a big help,” he added.

Barrick is also implementing a single information system across its operations, including Nevada Gold Mines. When Randgold Resources merged with Barrick, Randgold had real-time data.

“We’re now at a stage where, on a group-wide basis, all of us have the numbers at our fingers tips when we meet once a week and respond to things that need attention,” Bristow said. A software platform being rolled out across the entire group will take the combined entity to where Randgold was with real-time information, from exploration drill intersections and orebody models all the way to the profit-and-loss account, all in a single data set.

Barrick’s overall second-quarter production rose to 1.35-million ounces, with profit up 27% on higher production. The gold mining company that has assets in Argentina, Australia, Canada, Chile, the Dominican Republic, Papua New Guinea, Peru, Saudi Arabia, Tanzania, the US and Zambia, is forecasting gold production for the year of 5.1-million ounces to 5.6-million ounces at an all in sustaining cost (AISC) of $870/oz to $920/oz.

In the second quarter, net earnings were $0.11 a share, adjusted net earnings of $0.09 were in line with consensus and post-dividend debt net of cash was unchanged at $3.7-billion, with $0.04 a share paid out as a second-quarter dividend.

On Monday, the gold price was at close to $1 500/oz, buoyed by China-US trade dispute uncertainties and concerns of slowing global economic growth.

Barrick is already halfway to unlocking $500-million worth of synergies at Nevada Gold Mines and a “very exciting expansion project” is unfolding at PV in the Dominican Republic.

Once PV's new tailings site and permitting is settled, eleven million ounces of measured and indicated reserves will immediately be converted, giving a mine of 800 000 oz of gold a year for more than 20 years.

The Veladero operation in Argentina, which was the standout second-quarter performer with Loulo-Gounkoto in Mali, is very much back on track with a challenge to bring it to tier 1 status.

A new feasibility team has been formed to comprehensively review Pascua-Lama in Argentina, where Barrick holds rights covering 34 000 ha in the El Indio gold belt, the legendary gold trend that also crosses in to Chile and Peru.

“Peru, Chile and Argentina are very key for us going forward,” said Bristow, who still regards Africa as another stalwart.

The company has the troubled Acacia gold mine in Tanzania moving in the right direction, following an investment erosion in the last few years and with the acquisition of minority shareholders’ interests expected to be finalised next month.

“We’ve at least arrested the situation now the job is to build on that to recover some of the value that has been lost there,” he said.

A court ruling last week gave Barrick the right to continue to the Porgera mine in Papua New Guinea while negotiations for extensions are under way, which has taken away the time pressure.

The second-quarter performance of Barrick’s copper business in Zambia was strong, despite a lower copper price. All the operations were profitable and reported a pleasing AISC of 2.28/lb.

All the operations are at the top end of their guidance, with the exception of Kalgoorlie in Australia and Lagunas Norte in Peru, which is being placed on care and maintenance.

The Toronto-based company reported adjusted second-quarter profit of $154-million, up from $81-million a year earlier.

Barrick’s share price was up 1.87% in morning trade on the New York Stock Exchange.

Edited by Creamer Media Reporter

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