Kibali achieves 2021 guidance; set for third year of net DRC gold reserve growth

Barrick Gold (TSX: ABX; NYSE: GOLD) says its Tier One Kibali gold mine in the Democratic Republic of Congo has achieved its 2021 production guidance with the total output amounting to 812,152 ounces gold.

In a project update, the global gold major noted the operation’s production grew over the year, despite the added burden of strict Covid prevention protocols to stem the fourth wave and with no lost-time injuries.

In a news release, President and CEO Mark Bristow said the mine had worked closely with local health authorities and the provincial government to source vaccines and has partially vaccinated 60% of its workforce, with 43% of the workforce fully vaccinated.

Significantly, Bristow said Kibali was set to report the third year of net reserve replacement. The ongoing exploration success ensures that Kibali remains a top-tier asset by maintaining a plus-10-year life of mine.

The mine maintains its top-tier status, but it also does so in an environmentally sustainable way. It leads the group’s clean energy drive with power sourced from its three continuously upgraded hydropower stations supported by new backup battery technology.

The operation is a local economic dynamo.

It also strengthened its local business partnerships to build a sustainable economy in the region. During the fourth quarter, it spent US$40.6 million with local contractors and suppliers, bringing the total since the start of Kibali to US$2.1 billion. To date, Kibali has invested some US $3.7 billion in the DRC in the form of taxes, permits, infrastructure, salaries and payments to local partners

Moreover, during the fourth quarter, Kibali paid a dividend of US$170 million to shareholders of Barrick, AngloGold Ashanti and government parastatal, SOKIMO, bringing the total distribution for the year to US$200 million. Bristow said Barrick and the Congolese authorities were working together on a program to release cash to repay offshore loans.

Bristow said underground drilling at the KCD orebody defined a new high-grade lode above the base of the shaft infrastructure. This exciting discovery could add an entirely new orebody to the existing KCD series of deposits.

Barrick’s Toronto-quoted shares were trending 1.75% lower at $24.48 by midday Jan 21, giving it a market capitalization of $43.58 billion (US$34.7 billion).