Barrick considers Mali care and maintenance: Bristow

Barrick Gold (NYSE:GOLD; TSX:ABX) is considering care and maintenance for its suspended Loulo-Gounkoto mine in Mali where its gold stockpiles have been seized and four employees remain under detention, CEO Mark Bristow said on Wednesday.

“We are actively engaged with the administration to secure their release on a sustainable solution moving forward so that we can restart the mine,” Bristow told a conference call. “This situation has led us to file for exit arbitration to assert our rights, but at the same time, as usual, we remain engaged and are hoping to continue to make progress, albeit slowly.”

Bristow said a “difficult” decision would come in a month or so on whether to put the operation on care and maintenance, likely a cost of around $10 million per month, if talks fail. The Toronto-based miner applied to the International Centre for Settlement of Investment Disputes in December for arbitration. The mine is excluded for the time being from company guidance, and returns to forecasts from 2027, he said.

“It would not be a good thing to lose Loulo, not for anyone’s sake, and particularly not for Mali’s,” the CEO said. “But equally for us, we are longstanding partners in Mali. Every one of our operations are independently viable, and Barrick’s balance sheet is very solid and and so with or without, Loulo will not change our long term plan, our five-year plan.”

Shares in Barrick Gold shot up 6% on Tuesday in Toronto to $25.88 apiece after the company beat fourth-quarter estimates and said it would double its share buy-back program to $1 billion. The company’s market capitalization is $44.7 billion.

Beats estimates

Barrick reported a strong performance in the fourth quarter with gold production rising 15% and copper production increasing 33% over the previous three months, allowing the company to meet its annual production guidance.

The miner stated that its North America and Africa & Middle East operations met their production targets for the year. However, in the Latin America and Asia Pacific region, a slower-than-expected ramp-up at Pueblo Viejo resulted in production falling below guidance.

“We are targeting 30% growth on a gold-equivalent oz. basis towards the end of the decade, built on our current reserves,” Bristow said. “We will continue to replace and add to those reserves and resources for further supporting our growth. What’s more, we have the balance sheet strength to fund our growth.”

For 2025, attributable gold production is expected to range between 3.15 million and 3.5 million oz., excluding output from Loulo-Gounkoto while operations remain suspended. Attributable copper production for 2025 is projected to increase from 195,000 tonnes in 2024 to between 200,000 and 230,000 tonnes, driven by higher output at Lumwana in Zambia.

On an adjusted basis, the gold miner reported a profit of 46¢ per share for the quarter ending Dec. 31, surpassing the 41¢ per share estimate compiled by London Stock Exchange Group.

The company announced plans for a new $1 billion share repurchase program over the next 12 months. Under its 2024 buyback program, Barrick repurchased $498 million worth of common shares.

Turnarounds

Bristow mentioned how he’s transformed several operations, including the $7 billion Reko Diq copper development in Pakistan that now allocates half of its earnings to federal and local governments. He resolved a dispute over the Porgera gold mine in Papua New Guinea and advanced the company’s holdings in Tanzania which were under lawsuits when Barrick acquired them.

The Canadian miner has received assurances that gold worth about $245 million (C$350 million), which was seized by authorities, remains the company’s property

The CEO said Mali is being advised by former Barrick employees and he suggested a stance to increase royalties indiscriminately would only shorten the mine’s lifespan. Third-party independent experts would be welcomed to the negotiating table for a clear presentation of the business, he said.

“We are absolutely clear that if we get down to have an honest, open conversation with people that are giving sound advice and are not conflicted or motivated by the things than just getting what’s good for Mali, we’ll find a solution and that engagement is ongoing.”

Earlier, the CEO told Reuters Barrick would restart the mine once Malian authorities allow it to restart gold shipments from the country. The Canadian miner has received assurances that gold worth about $245 million (C$350 million), which was seized by authorities, remains the company’s property, he told the newswire. The Toronto-based miner halted operations at its Loulo-Gounkoto complex in Mali in January after authorities raided the stockpile.

Mali is seeking a settlement payment of 125 billion CFA francs ($197 million) from Barrick, according to Bloomberg News, which cited local sources. The government is also demanding the company’s compliance with the country’s new mining code that increased the state’s share of mining revenues and eliminated tax exemptions