Barrick (GOLD) Gears Up for Porgera Gold Mine Production Restart
Barrick Gold Corporation GOLD announced that the Porgera mine in Papua New Guinea (PNG) is slated to recommence operations later this month, with gold pouring anticipated to begin in the first quarter of 2024. This development comes after the fulfillment of conditions outlined in the Porgera Project Commencement Agreement, which involved establishing a new ownership structure.
Barrick emphasized the reopening as a triumph for its host-country partnership model, proven successful in Tanzania and adopted for the Reko Diq copper and gold project in Pakistan. Barrick expressed optimism about steering the Porgera mine back to world-class production, potentially joining Barrick's Tier One gold mine portfolio, the industry's largest.
Under the new ownership structure, New Porgera is jointly owned, with PNG stakeholders — including local landowners and the Enga provincial government — holding a 51% equity stake. Barrick Niugini Limited (BNL), a joint venture between Barrick and China's Zijin, owns the remaining 49% and will operate the mine. PNG shareholders are set to receive 53% of Porgera's overall economic benefits, which are expected to surpass $7 billion over the projected 20-year life of the mine, assuming a gold price of $1,800 per ounce.
During the PNG Resources & Energy Investment Conference in Sydney, Australia, prime minister James Marape celebrated the revival of Porgera as a significant contributor to the country's economy. This partnership structure grants PNG stakeholders a majority interest in a crucial resource for the first time.
Barrick’s shares have lost 4.5% in the past year against a 0.4% rise of the industry.
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The company’s adjusted earnings per share in the third quarter of 24 cents beat the Zacks Consensus Estimate of 21 cents. It recorded total sales of $2,862 million in the quarter, up 13% year over year. The figure missed the Zacks Consensus Estimate of $2,998.8 million.
For 2023, Barrick anticipates attributable gold production to be modestly below the bottom end of its earlier announced guidance of 4.2-4.6 million ounces.
Barrick Gold Corporation Price and Consensus
Barrick Gold Corporation price-consensus-chart | Barrick Gold Corporation Quote
Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
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