Barrick Gold increases global gold reserves by 23%, driven by Reko Diq

Despite geopolitical and regulatory challenges, Barrick continues to solidify its position in the global mining industry with a strategy focused on reserve optimization and long-term project development.

Barrick Gold (TSX: ABX, NYSE: GOLD), one of the world's largest gold producers, has announced a significant 23% increase in its global gold reserves in 2024 following a new assessment of the Reko Diq project in Pakistan. The company, which has faced operational challenges in Africa and other regions, seeks to counter its stock decline with large-scale strategic projects.

Reserves Growth and Gold Assessment

According to an official statement released on Thursday, Barrick’s attributable proven and probable reserves increased by 17.4 million ounces before depletion, reaching 89 million ounces at a grade of 0.99 grams per tonne, compared to 77 million ounces at 1.65 grams per tonne the previous year.

This increase is largely due to the conversion of copper-gold resources into mineral reserves at Reko Diq, adding 13 million ounces of gold at a grade of 0.28 grams per tonne. Additionally, the company’s copper reserves tripled, reaching 18 million tonnes with an improved grade of 0.45%.

Regulatory Hurdles and Stock Performance

Despite the boost in reserves, Barrick’s stock has underperformed compared to its competitors over the past five years. While the iShares S&P/TSX Global Gold Index ETF has risen by 57%, Barrick’s shares have dropped about 6% on the Toronto Stock Exchange.

Regulatory and operational challenges in countries such as Mali, Papua New Guinea, and the Dominican Republic have affected its performance. In January, Barrick suspended operations at its Loulo-Gounkoto complex in Mali after the government moved gold stockpiles to a custodian bank, claiming the miner owed $512 million in back taxes.

Transformational Projects to Drive Growth

To strengthen production and financial stability, Barrick is focusing on “transformational” projects such as:

Reko Diq (Pakistan): Projected to generate $74 billion in cash flow over 37 years.

Lumwana Expansion (Zambia): A large-scale copper mine with confirmed reserves.

Pueblo Viejo (Dominican Republic): Modernization and expansion of one of the Western Hemisphere’s largest gold mines.

Fourmile (Nevada, USA): A high-grade deposit with significant production potential.

Barrick CEO Mark Bristow confirmed that the first phase of Reko Diq will require an investment of $5.5 billion, with expectations of producing 200,000 tonnes of copper concentrate and 250,000 ounces of gold annually starting in 2029. A second phase, costing an additional $3.5 billion, would double production in the following decade.

Copper Strategy: Key to the Energy Transition

Barrick is reinforcing its presence in the copper industry, a critical metal for the global energy transition. Reko Diq, located in the Chagai mountain range, is a strategic deposit within the Tethyan Magmatic Arc, one of the world’s richest copper and gold regions.

With a gold price estimate of $1,400 per ounce and copper at $3 per pound for reserves, Barrick aims to maintain resource quality without artificially inflating reserve prices, according to Simon Bottoms, Barrick’s Executive for Mineral Resource Management and Evaluation.