JOHANNESBURG (miningweekly.com) – In the three months to September 30, the Africa region of Barrick Mining Corporation delivered the largest quarter-on-quarter increase of all the Barrick regions. Moreover, the costs of the Africa region were down across the board, resulting in a 65% quarter-on-quarter increase in attributable earnings before interest, taxes, depreciation and amortisaion (Ebitda).

Not only was the Africa region’s year-to-date gold output the highest but the region’s realised costs were also the lowest, leading to the Ebitda leap as well as a free cash flow jump.

The Africa region's 8% higher gold production was driven mainly by a 15% increase at the Kibali gold mine in the Democratic Republic of Congo.

Barrick’s third-quarter operating and financial results for the period ending September 30 show that higher mining volumes and grades uplifted Kibali’s processing grade as the gold operation heads into an expected strong fourth quarter year-end delivery.

Kibali’s third-quarter cost of sales declined by 5% and its total cash costs by 7% compared with the second quarter and in Tanzania, production at North Mara was up 3% as both underground and opencast operations exceeded expectations.

Africa region operations are also on track to meet full-year production guidance.

On the copper front, Africa’s Lumwana copper mine in Zambia is self-funding Lumwana's significant expansion and this self-funding is set to continue for the whole of 2025. The copper expansion is also tracking ahead of schedule.

Despite a planned third-quarter shut resulting in a 7% production decline in the three months to September 30, Lumwana remains on track to meet full-year production guidance.

“We expect Q4 copper production to be similar to Q2 delivering annual results for our copper business within guidance. As we've discussed throughout this call, Barrick is in good position to deliver on our plans for the year,” Barrick COO and interim president and CEO Mark Hill said during the quarterly presentation of results, covered by Mining Weekly. The appointment of Hill took place on September 29, following the departure of Dr Mark Bristow.

Gold production is tracking in the bottom half of its guidance range, and copper production is tracking to the midpoint.

“Also note that the gold production guidance includes Tongon and Hemlo and we expect to have these sales conclude before the year-end.

“After adjusting for the year-to-date higher gold price, our total cash costs are also tracking within guidance.

“Copper costs are already within guidance, and we're expecting Lumwana to report a strong finish to the year,” Hill told analysts and media.

In the three months to September 30, the New York- and Toronto-listed company generated revenue of $4.1-billion in revenue, record operating cash flow of $2.4-billion and free cash flow of $1.5-billion.

FOCUS IS ON JAILED MALI EMPLOYEES

Questioned on the possibility of Barrick selling its Mali gold assets, Hill said in response that his focus in Mali was on trying to secure the release from jail of four Barrick employees, including a regional manager, who were detained in November.

“My focus is on getting these four people out of jail, so that's what I'm working through at the minute. They've been incarcerated now for 11 months, so my focus is on that, rather than anything else in Mali at the minute.

“And if we get that achieved, then obviously we will look at restarting that operation. We still have people on site doing the care and maintenance, so we could restart that operation. But the focus is, we have to get those people out of jail, or my focus anyway,” Hill emphasised.

The Mali government is currently military-led following a military coup in 2020.

In June, Mali seized Barrick’s Loulo-Gounkoto gold complex and appointed a provisional administrator for a six-month period, after months of blocking the company’s gold exports.

According to a Reuters report, the Mali government has revoked more than 90 mining exploration permits, including those held by subsidiaries of international mining companies.

Companies affected reportedly include local subsidiaries of South Africa’s Harmony Gold, IAMGOLD, Cora Gold, Birimian Gold, and Resolute Mining.

Mali's decree, signed by Mines Minister Amadou Keita on October 13 and reportedly reviewed by Reuters on October 29, cancels permits issued between 2015 and 2022 for the exploration of gold, iron-ore, bauxite, uranium, rare earths and other minerals.