TORONTO – Having reduced its debt by 24% or $3.1 billion (US dollars) in 2015, Barrick Gold taking aim at a further $2 billion debt reduction this year. The news comes as the company recorded its first free cash flow in four years, generating $471 million in the full year and $3.87 million in Q4 2015.
Adjusted net earnings were $344 million ($0.30 per share) for the full year and $91 million ($0.08 per share) in the fourth quarter. A net loss of $2.84 billion ($2.44 per share) for the full year and $2.62 billion ($2.25 per share) in the fourth quarter reflects the impact of $3.1 billion in previously announced after tax impairment charges.
Barrick produce 6.12 million oz of gold at all-in sustaining costs of US$831 per oz, well below guidance of US$860 to $895 per oz. For 2016, production guidance is 5.0 million to 5.5 million oz of gold at AISC costs of $775 to $825 per oz. The goal is to reduce gold AISC to below $700 per oz by 2019. The company also plans to produce 370 million to 410 million lb of copper at AISC of $2.05-$2.35 per lb this year.
The company added that proven and probable gold reserves as of Dec. 31, 2015, were 91.9 million oz. Add to that another 5.5 million oz recently estimated for the Alturas discovery in Chile, and the future looks bright from a reserves aspect.
Barrick is holding an investor day webcast on February 22. The material will be available at www.Barrick.com.