(Kitco News) - Not only are mining companies seeing significant margins and cash flows, but one of the world’s largest gold producers has also reported substantial reserve growth from 2024.
In a report released Thursday, Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) stated that it increased attributable proven and probable gold mineral reserves by 17.4 million ounces before 2024 depletion—an increase of 23% in 2023.
“The year-on-year change was driven by the conversion of Reko Diq copper-gold resources to mineral reserves, adding 13 million ounces of gold at 0.28 g/t² on an attributable basis following the completion of the feasibility study. Notably, even before the addition of Reko Diq, Barrick achieved its fourth consecutive year of replacing annual depletion at a 4% higher grade, demonstrating an unwavering focus on asset quality and further extending the life of our existing operations,” the company said. “Since the end of 2019, Barrick has replaced more than 180% of the company’s depleted gold reserves, adding nearly 46 million ounces of attributable proven and probable reserves across Barrick-managed assets.”
At the same time, the company reported that its copper mineral reserves grew by 224% year-over-year on an attributable basis.
Barrick has intensified its focus on copper in recent years as the base metal market experiences strong demand due to the ongoing energy transition and the growing electric vehicle industry.
“In order for our industry to help build a better world, we must invest in our own future with transformational projects like the Lumwana Super Pit Expansion, Pueblo Viejo Expansion, Reko Diq, and Fourmile. Barrick’s vision for these projects extends beyond mining, ensuring that the benefits of these investments provide multi-generational value to our host countries and local communities through partnerships with local service providers and investments in the sustainability of our operating environments,” said Bristow.
Bristow noted that the company’s gold reserves are priced at $1,400 per ounce, while its copper reserves are priced at $3.00 per pound. With gold prices currently above $2,880 per ounce and copper at $4.40 per pound, Barrick’s reserve pricing reflects substantial profit margins.
