On Monday, Barrick Mining (NYSE:B) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more.
View the webcast at https://barrick-q1-2026.open-exchange.net/registration
Summary
Barrick Mining Corporation reported strong Q1 2026 results with significant improvements in operating and financial performance, including a 4% year-over-year increase in gold production and a 320% increase in free cash flow.
Strategic initiatives include a $3 billion share buyback authorization and continued progress on key growth projects such as the PV Lemwana expansion and the 4 Mile project.
The company maintained its 2026 production and cost guidance, expecting higher gold and copper production in the latter half of the year. Barrick is also advancing the IPO of its North American gold assets, aiming for completion by year-end.
Operational highlights include improved safety measures, better cost discipline, and strong performance across all regions, particularly in North America, where NGM was a key contributor.
Management emphasized commitment to delivering on shareholder promises and highlighted the company's disciplined capital allocation strategy to support growth and shareholder returns.
Full Transcript
OPERATOR
Welcome everyone to Barrick's first quarter 2026 results presentation. this time, all participants are in listen only mode. As a reminder, this event is being recorded and a replay will be available on Barrick's website later today. I will now turn the call over to Cleve Rickert, Head of Investor Relations at Barrick Mining Corp. Please go ahead.
Cleve Rickert (Head of Investor Relations)
Thank you and good morning everyone. We hope you've had an opportunity to review the press release we issued before the markets opened this morning. This presentation deck is also now available to download on our website. Presenting our results today are Mark Hill, Barrick's President and CEO, and Helen Kai, Senior EVP and cfo. Other members of Barrick's management team will be available after our prepared remarks for Q and A. Before we begin, please note that we will be making forward looking statements. This slide includes a summary of the significant risks and factors that could affect Barrick's future performance and our ability to deliver on these forward looking statements. This material is also available on our website. I will now hand it over to Mark.
Mark Hill (President and Chief Executive Officer)
Thanks, Cleve. And thank you all for joining us. We had a strong Q1 with excellent operating and financial results. Before I go into detail, I want to review the priorities for 2026 that we set at the start of the year. These are our priorities for achieving safe, consistent, reliable delivery across our portfolio. The first is obviously safety. Our safety performance has not been where it needs to be and we're taking action to improve it. The second is operational delivery. We are on track to meet our production and cost benefits. The third priority is growth. Hi. Our third priority is returning cash to shareholders. Our new dividend policy implemented last quarter provides for a quarterly base dividend of 17.5 cents per share, topped up at year end to target a total payout of 50% of attributable free cash flow this quarter. Following solid execution, strong free cash flow and the value in Barrick stock. The board also approved a 3 billion share buyback authorization that further amplifies our total return to shareholders. Since 2021, Barrick has returned $7.9 billion to shareholders, including 697 million in Q1 2026 and $2.4 billion in 2025. Our capital allocation framework is disciplined, flexible and designed to work throughout the cycle. It supports reinvestment in the business, advances growth, protects the balance sheets and creates a clear pathway for returning excess cash to shareholders. With that, I will turn the call back over to Mark. Thank you, Helen. Our 2026 production and cost guidance remain unchanged for the second quarter. We expect gold production to be in the range of 730 to 770,000 ounces, which is above Q1 and consistent with our plan. We also expect higher production in the third and fourth quarters, which is typical for our business. For copper, we expect higher production in the second half of the year than the first half. We will continue to focus on controlling costs, capital intensity and productivity. Based on what we see today, we remain confident in our ability to deliver our full year commitments. So to conclude, I want to reinforce our four priorities, all of which we have made steady Progress on. In Q1, we improved safety, although we do realise we still have a lot of work to do. We improved operational consistency and cost discipline and delivered on guidance. For Q1. We advanced PV, Lwana and 4 mile on schedule and on budget. We advanced our North American IPO on schedule and we are on track to execute successfully against all of these four priorities by year end. So Barrick historically has been criticised for not delivering on its commitments. So I just want to highlight that this is the second quarter that we have delivered on all of our commitments to our shareholders. Our portfolio is performing with increased resilience, our strategic projects are advancing, our balance sheet is strong and we're on track to achieve our 2026 guidance. I'll now hand back to the moderator for Q and A.
OPERATOR
Welcome everyone to Barrick's first quarter 2026 results presentation. this time all participants are in listen only mode. As a reminder, this event is being recorded and a replay will be available on Barrick's website later today. I will now turn the call over to Cleve Rickert, Head of Investor Relations. Please go ahead.
Cleve Rickert (Head of Investor Relations)
Thank you and good morning everyone. We hope you've had an opportunity to review the press release we issued before the markets opened this morning. This presentation deck is also now available to download on our website. Presenting our results today are Mark Hill, Barrick's President and CEO, and Helen Kai, Senior EVP and cfo. Other members of Barrick's management team will be available after our prepared remarks for Q and A. Before we begin, please note that we will be making forward looking statements. This slide includes a summary of the significant risks and factors that could affect Barrick's future performance and our ability to deliver on these forward looking statements. This material is also available on our website. I will now hand it over to Mark Hill.
Mark Hill (President and Chief Executive Officer)
Thanks Cleve and thank you all for joining us. We had a strong Q1, but with excellent operating and financial results. Before I go into detail, I want to review the priorities for 2026 that we set at the start of the year. These are our priorities for achieving safe, consistent, reliable delivery across our portfolio. The first is obviously safety. Our safety performance has not been where it needs to be and we're taking action to improve it. The second is operational delivery. We are on track to meet our production and cost benefits. The third is growth. We are advancing our key organic opportunities including PV Lemwana and 4 mile. And the fourth is the IPO of North American gold assets which we believe will unlock significant value for our shareholders. In Q1, we made steady progress in all four of these areas. It was the second quarter in a row of improved delivery across the board. Most importantly, we improved safety. We performed well operationally and we delivered gold production above guidance. Production increased 4% year over year. We also came in below guidance on our costs. Strong execution in the quarter allowed us to capture more of the higher gold price and deliver strong financial results. Attributable EBITDA doubled year over year at a much higher margin. Free cash flow increased 320% year over year to 1.6 billion and we ended the quarter with 2.4 billion of net cash. We advanced our growth projects. Our 100% owned 4 mile project continued to progress. The Malmana expansion advanced slightly ahead of schedule. And we are reviewing Rekordic as previously disclosed. Finally, we move forward on the planned North American IPO which are on track to complete by the end of this year. Our North American assets have their own dedicated leadership team which has been working together successfully. Okay, I'd like now to spend some time reviewing our work on safety. We believe our safety, performance, operational performance are linked. Businesses perform better overall when they manage risk, have leaders in the field and follow critical controls. Historically, Barrick focused on total recordable injuries. The company led the industry on that one metric. Yet it did not adequately address the risks that can lead to serious injuries and fatalities. In Q4 of last year, we shifted our focus to identifying and eliminating the risks behind serious and fatal events. In Q1, we saw this change begin to work. There was a meaningful reduction in significant and high severity injuries. 63% of all injuries during the quarter were classified as minor. Our reported lost time injuries also declined. Our leaders all the way up to our executive committee are spending more time in the field. They are focusing more on leading indicators, particularly critical control verifications. To be clear though, we are still not where we need to be and had too many near misses during the quarter. We still have work to do, but we are making steady progress to fulfil our commitment to zero harm. It is now embedded in leadership, behaviour, operating routines and decision making at every level. Turning now to our Q1 highlights, Barrick produced 719,000 ounces of gold in the quarter above guidance and an increase of 4% from a year ago. There were three drivers a 10% year on year increase in production in North America along with strong performance at both Valadera and Lulu Konkoto. On the copper side we produced 49,000 tonnes in line with the plan. We managed costs with discipline. Our gold cost per ounce came in better than planned reflecting solid cost control and efficiencies across both mining and process. Copper production increased 11% year over year. C1 cash costs were lower than our plan. The combination of volume, cost discipline and favorable realized pricing drove a substantial increase in earnings and cash flow which has meant that today we announced a quarterly dividend of 17.5 cents per share and a $3 billion share buyback in Q1. We had strong performance across all our regions. North America continued to anchor our world class portfolio. NGM and PB both registered year over year growth. Together they accounted for 57% of our attributable EBITDA at a margin of nearly 70%. Our other regions also delivered strong gold production with meaningful attributable EBITDA at margins of 65%. Copper is performing well and it is important part of the growth driver for Barrett. Our portfolio provides near term cash flow and longer term organic growth. So as I mentioned, NGM is on track and performing well. It was a core contributor to our operational and financial performance. The productivity improvements we highlighted last quarter continued through Q1. Kaalin Cortes and Turquoise rich underground mines delivered their highest tonnages since the joint venture was formed. We are now on track to achieve record underground tonnes mined for this year. That is an important leading indicator that speaks to both mine productivity and the reliability of execution underground. Our processing plants performed equally well. The Carlin Roasters achieved their highest Q1 production since 2022. The Sage autoclave achieved its highest quarterly throughput since 2021 and we achieved these increases in both volume and productivity while continuing to improve safety. As I said, they work together. I also want to highlight that we remain in regular and constructive dialogue with Newmont, our NGM JEV partner about NGM performance. The timeline of the vending of Fourmile and the IPO. Lulu Concotter also had an excellent quarter. The ramp up progressed ahead of schedule. Both mining and processing outperformed the Restart plant which speaks to the strengths of both the asset and our execution. We are prioritising the higher grade underground ore that will contribute more in the near term. At the same time, we are preserving future optionality in the open pits. The team reported zero safety and Class 1 environmental incidents during the quarter. Financially, Lulu Concata made an earlier than expected contribution to Barrick's quarterly attributable ebitda. Already a meaningful result at this stage of the ramp up. Turning to our organic growth pipeline, Lamana is our copper growth project in Zambia. Once complete, the mill expansion will increase throughput from 27 to 52 million tonnes per year, increasing copper production by 100% from 117 to 240,000 tonnes annually. The project is on track to come in towards the lower end of the 2026 Capital Guidance and on track for the original budget of $2 billion. During the quarter, the initial lift of the mill building was completed, mill shells were delivered and the first shipments of structural steel were on their way to site. We expect to produce our first copper from the expansion by Q1 2028. Our 4 mile project in Nevada continued to demonstrate its potential to become a Tier one gold asset. Drilling activity continued throughout the winter. We plan to expand drilling through 2026 and to complete the PFS studies by 2028. You can see the quality of the interception grade outside of the existing resource on the slide. Finally, we are on track to complete the proposed IPO of our North American gold assets by the end of 2026. As I said, the region has a dedicated team and has been working together very well for several months. They can focus completely on North America without the competing priorities that came from running broader multinational portfolio. We believe that the focus should translate to further improvements in performance. We will continue to update the market on the IPO as we make further progress. So I would now like to introduce Talon Kai, our CFO who will review our financial performance. Helen, over to you.
Helen Kai (Senior Executive Vice President and Chief Financial Officer)
Thank you Mark and good morning everyone. At a high level, this was a quarter in which strong production, disciplined cost performance and a supported gold price environment combined to deliver outstanding financial results. We saw substantial growth in earnings, significant margin expansion and robust free cash flow generation while also strengthening an already solid balance sheet. What is important is that these results were not driven by price alone. The higher gold price clearly helped, but it amplified improvements already occurring in the business. Better operating performance, cost discipline, portfolio optimization and stronger capital efficiency. This is what gives these results real quality and durability. Turning to the numbers, gold production from continuing operations increased 4% year over year. Combined with the 66% increase in our realized gold price that drove the very strong financial performance mark already touched on Adjusted net earnings rose 173% year on year and attributable EBITDA increased 103%. Attributable free cash flow, which is the measure we use as the basis for our dividend policy, increased 195% year over year to $1.2 billion in the quarter. These very strong results reflect both the operational progress in the business and the leverage our portfolio has to higher commodity prices when we execute well. We closed Q1 with $2.4 billion of net cash on the balance sheet, giving us flexibility to continue investing in our highest return opportunities. Taken together, I would describe the quarter as one of strong earnings quality with strong cash conversation. Capital allocation is a major priority, particularly in an environment where the business is generating significant free cash flow. We have a clear framework for deploying capital to sustain and grow our business and provide returns to shareholders, all while ensuring our balance sheet remains strong and flexible. This framework is designed to be sustainable through the cycle. Our first priority is balance sheet strength. With 2.4 billion of net cash and an undrawn $3 billion revolving credit facility and no meaningful debt due until 2033, we are already in a favorable position. Our second priority is earnings accretive growth, which includes sustaining and growth capital. Luana and Formao are two clear examples where we are deploying capital into organic opportunities that we believe will generate superior returns. More broadly. We intend to identify similarly earnings accretive opportunities in the future to strengthen our growth profile while remaining disciplined in how and when we deploy capital. This is not only about growth for its own sake, it is about creating value over time. Our third priority is returning cash to shareholders. Our new dividend policy implemented last quarter provides for a quarterly base dividend of 17.5 cents per share, topped up at year end to to target a total payout of 50% of attributable free cash flow this quarter. Following solid execution, strong free cash flow and the value in Barrick's stock, the board also approved a 3 billion share buyback authorization that further amplifies our total return to shareholders. Since 2021, Barrick has returned $7.9 billion to shareholders, including 697 million in Q1 2026 and $2.4 billion in 2025. Our capital allocation framework is disciplined, flexible and designed to work throughout the cycle. It supports reinvestment in the business, advances growth, protects the balance sheets, and creates a clear pathway for returning excess cash to shareholders. With that, I will turn the call back over to Mark.
Mark Hill (President and Chief Executive Officer)
Thank you, Helen. Our 2026 production and cost guidance remain unchanged for the second quarter. We expect gold production to be in the range of 730,000 to 770,000 ounces, which is above Q1 and consistent with our plan. We also expect high production in the third and fourth quarters, which is typical for our business. For copper, we expect higher production in the second half of the year than the first half. We will continue to focus on controlling costs, capital intensity and productivity. Based on what we see today. We remain confident in our ability to deliver our full year commitments. So to conclude, I want to reinforce our four priorities, all of which we have made steady Progress on. In Q1, we improved safety, although we do realize we still have a lot of work to do. We improved operational consistency and cost discipline and delivered on guidance for Q1. We advanced PV Lumwana and 4 mile on schedule and on budget. We advanced our North American IPO on schedule and we are on track to execute successfully against all of these four priorities by year end. So Barrick historically has been criticised for not delivering on its commitments. So I just want to highlight that this is the second quarter that we have delivered on all of our commitments to our shareholders. Our portfolio is performing with increased resilience, our strategic projects are advancing, our balance sheet is strong and we're on track to achieve our 2026 goals. I'll now hand back to the moderator for Q and A.
OPERATOR
Hi, can you hear me okay? Yes, we can hear you. Hello, can you hear me?
Daniel Major (Equity Analyst at UBS)
Great. Hi, Mark. Hi, Helen. Yeah, few questions. Yeah, the. The first one just on Recodick. You've pulled the guidance for the full year down to the lower end of the range. In terms of Capex, how should we be thinking about the run rate of quarterly Capex? Going through the balance of the year is the first part of the question. The second is what is the estimated holding cost of the project on an annualized or a quarterly basis at care and maintenance. And I guess the third part is what would you need to see to conclude that this is a project that you feel comfortable committing the remaining capex to build the project.
Mark Hill (President and Chief Executive Officer)
Okay, thanks Daniel. So on Recodick, the budget stays intact. So we will be finishing some of those works that we'd already started. So those contracts will continue on whilst we do this 12 month review. So the year's budget will still come in on that range. Look, the run rate when we are doing this review on top is about $20 million a month and that's probably a bit of a rough number at this stage, but we're still refining that, but you can assume it's around that number. And a good question, what do we need to see? So what we did is when we went into this review there was some things that we had to address. Right now we're having issues with the contractors on site and we've had several force majeure notices. So the first thing is we have to understand the contracting strategy and how we're going to make this successful because obviously we can't continue on that and that was due to some security concerns and what's going on in the region as well. So we're working on how we'll rectify that with the Pakistan government and our chairman was just there actually yesterday and making progress on those discussions. And then obviously the other thing is I just want to rerun the capital and see where we are with that and if there's been any large shifts in the capital and once we get the answer to all that, I can make an informed decision. I know I've been criticised for being overly cautious, but I think on a project like this it's important for all the shareholders, including the ones in Pakistan, that we actually understand where we are so that we can be successful going forward. Does that answer everything you wanted, Daniel?
Daniel Major (Equity Analyst at UBS)
Okay, yeah, I think so. Just clarify that if there's a situation beyond this year that you cannot commit to continuing, it would be about $20 million a month just to hold it on care and maintenance, is that correct? Yes, that's approximately what the number would be. Yes. Yeah. After we get through these contracts, we're winding up. Yeah. Okay. And then my second question, maybe one for Helen just on the balance sheet and the distribution policy. So nice to see you've added the buyback in, but a couple of elements to it. I'm assuming your 50% commitment to the dividend is independent of if you do buybacks or not. Or is that 50% a cash return commitment? That's the first part. And then the second part, you've got 2, 2.4 billion of cash on the balance sheet. What is the level at which you would be willing to commit 100% of free cash flow in capital returns and what is the disadvantage of setting a net cash target?
Helen Kai (Senior Executive Vice President and Chief Financial Officer)
Thank you. Daniel. On your first question, the 50% attributable free cash flow policy was just introduced in 4Q last year and we maintain that policy. That means at year end we will use attributable operating cash flow minus attributable capex to derive the attributable free cash flow and then 50% of that will be used for top up dividend in the fourth quarter. So that will not affect or be impacted by any of the buyback program that we just announced today. Is that clear on that before I move to your second question? Yeah, that's clear. Thank you. Okay, so your second question is about setting up a target on the balance sheet. We had a balance sheet based target before and we moved to the free cash flow based policy last quarter. So right now we are taking just a flexible stance given the strong cash flow and strong balance sheet. We announced this 3 billion and we will see the market window. Whenever appropriate, we will execute on our, you know, buyback program. Is that okay?
Daniel Major (Equity Analyst at UBS)
Thank you. Thank you. Yeah, maybe just, I mean in terms of the 3 billion, should we look at that as something that in all else equal, you would. Is it an option or is it kind of something we would expect you to be buying back stock, you know, through the year if we're in the same kind of range as we are today?
Helen Kai (Senior Executive Vice President and Chief Financial Officer)
I think that is that decision is based on our strong balance sheet and the cash flow generation as well as the value we see in Barrick shares. So we are, you know, launching this program to carry it on throughout the year.
OPERATOR
Okay, thank you. Thank you. For our next question, we will return to Tanya Jakuskinek from Scotiabank. Your line is open. Please unmute and ask your question. Tanya, your line is open. Please unmute and ask your question. All right, for now we will move forward. Our next question.
Mark Hill (President and Chief Executive Officer)
Sorry, can I just operate? Tanya, if you want to flick your questions, I don't know why we can't hear you, but if you want to flick us the questions on email and I will answer them at the end.
OPERATOR
Thank you. Our next question comes from Josh Wolfson at RBC. Your line is open, please Unmute and ask your question.
Josh Wolfson
Yeah, thank you very much, operator. Just going into some of the operating details. First off at ngm, Mark, you sort of talked about a bunch of the factors that caused outperformance in the first quarter. You know, I'm wondering what's the ability for the company to extend some of these positive results into second quarter and maybe the second half of the year and maybe embedded within that second quarter guidance. Is there any additional information on how NGM fits in there? Thank you.
Mark Hill (President and Chief Executive Officer)
Okay, thanks Josh. Look, on the NGM performance. So there is a thing I want to highlight because we're discussing this about, about guidance. So you're remembering Q4 when the team said, look, we're going to try and not pull down all the inventory out of all the circuits at the end of the year. So we didn't do that. Which actually did give us a boost in Q1 that we didn't expect or we didn't plan for, I suppose is the right way to put it. And the increases in performance, some of them were already built in. So I mean Tim and the team have done a good job of realising those, but it doesn't change the outlook for the year. And I don't know, Tim, if you want to make any other comments on
Tim
that, I think you covered it, Mark. It's really that focus on operating discipline and conformance to plan. And I do think if you can deliver on that, you do, it will lead to delivering on efficiency improvements as it goes. But as you said, the plan's where it stands for the rest of the year.
Josh Wolfson
Josh. Reasonably happy. I may have some follow up questions with the team.
Mark Hill (President and Chief Executive Officer)
Let me just say something else. Look, this process where we've given all autonomy back to that region and we've had a focus on it and we have had separate management teams, I will admit the results have come quicker than I expected. So if we let us get through Q2 and just see where we're tracking after that.
Josh Wolfson
Looking forward to that. On Lulo, you talked about the underground ramp up going faster than expected. You know, in light of some of the uncertainties in Mali and some of the news on contractor changes, I guess first, you know, should we expect to see improvements in the asset into the second quarter and then more broadly, I mean, what, what should our expectations be under this new operating plan for, for this asset on a steady state basis?
Mark Hill (President and Chief Executive Officer)
Okay, well, I'm gonna, I'll just give you the high level update. So yes, you're right, it ramped up quicker than expected and it will reach its full potential by the end of the year, as we've planned. So that remains unchanged. And then once we get to steady state, then you can expect at 100%, I think, 600 plus thousand ounces, whatever it was before we went into the care and maintenance stage.
Sebastiaan Bock
But look, it's progressing well and I'm just going to hand over to Seb. I don't know whether you've got some other comments for what Josh said. Yeah, maybe. Josh, on the look on the contractor change, we were aware that DTP was planning to exit, but it also tied into our strategy to replace it with a local contractor. So we expect to replace that contract by the end of the year and resume that part of the open buying plan. As you say, our undergrounds have ramped up nicely. Our other open pits are performing. So there's no impact to the plan. And you will see a step up. And I think just on the options, Ludo still remains a strong contributor to the bottom line. It's a strong contributor to our production profile. And so but as we ramp this up, we'll of course, we'll continue to assess the all the full range of the strategic alternatives on this asset.
OPERATOR
Thanks. As a reminder, if you would like to ask a question, please click on the raise hand button at the bottom of your screen. Our next question comes from Bennett Moore with J.P. morgan. Your line is open. Please unmute and ask your question.
Bennett Moore (Equity Analyst at J.P. Morgan)
All right. Good morning. Can you hear me all right? Yeah, we can hear you, Bennett. Thanks. Great. Thanks for taking my questions. And Helen, congrats on the new role. I wanted to start with the broader shift in strategy outlined in the recent shareholder letter as it relates to reducing high risk exposure in those jurisdictions and targeted acquisitions. Could you speak a bit to your framework on both? How do you go about determining which assets might be best suited for divestment and vice versa for acquisitions? And for the latter, is there any preference between gold and copper?
Mark Hill (President and Chief Executive Officer)
Okay, Ben, I think on the de risking, obviously we're trying to focus our growth in more stable areas, right. Where we have more certainty around the. The mining regime and the ability to operate without a lot of interference. So without going through the actual list of the countries, I mean, obviously there you can see with what's happened in Africa recently, which countries would obviously not be ideal for investment. And then about, I suppose, non core assets is what you meant by the second part of that question, Bennett. Yep. Okay. So non core assets, I mean, things like core growing. We have a minority stake in it at 24% and we obviously spend a considerable amount of management time on it. So something like that would be considered non core at this stage. And that's from where we are now. That would be where I ended. All right, thanks for that. And then appreciate the sensitivity on diesel. Wondering if you could remind us which operations are most exposed, what inventory buffers look like so we can I guess get a better gauge for the cadence of potential impacts moving forward. Okay. I can't remember what we had in the deck but the sensitivity obviously is $12 per ounce for every $10 move in the oil price. As far as supply and we went through this yesterday as well. So as far as supply goes, we are well covered everywhere. So that the supply is not going to be an issue, it's just going to be the knock on effect on the cost per ounce. So I don't. We're at no risk of running out of diesels. That's what's the question. Okay, much appreciated. Best of luck. Thanks Bennett.
OPERATOR
Our next question comes from Anita Soni at CIBC World Markets. Your line is open. Please unmute and ask your question.
Anita Soni (Equity Analyst at CIBC World Markets)
Hi, can you hear me? Yeah, we can hear you Anita. Thanks, that's good. I don't know if I can figure out the unmute button, but a couple of questions. So firstly, have you experienced any issues with concentrate shipments coming out of Zambia at this point in terms of restrictions or things like that?
Sebastiaan Bock
Not that I'm aware of. Seb, can you answer that? No. Look, all of our concentrate we smelt locally, so it hasn't been an issue. And I'm not aware of any issues with the product export from there. So no, we haven't had problems
Anita Soni (Equity Analyst at CIBC World Markets)
moving to pv. The tonnage there, I think I had only like a 15 day shutdown but that tonnage was fairly low for the quarter. Could you just talk about the tonnage, the throughput rate at pv?
Tim
Okay, let me hand it over to Tim. Tim, can you answer it? Yeah. Thanks Mark. Anita, I think the important thing of PV is we updated the metallurgical model and we shared that in the updated technical report. Part of that work, and I mentioned it last quarter, is we're working with Hatch on how we can further improve this. So in addition to the outages which happened during the month as well, power interruptions which the team experienced, there is also a body of work going on with Hatch and with our team around how we can further optimise this recovery going forward. So you're really seeing a combination of the power, the outage for the shutdown work and this improvement program work together in that number. But as you can see, the recovery has come up from where it sat a year ago. And I think, you know, we have some, you know, optimistic programs to try and lift ourselves further from where we're at on that recovery front.
Anita Soni (Equity Analyst at CIBC World Markets)
Yeah, I mean, I was, I was encouraged by the recovery rate at 74%. I mean, albeit the numbers had been reduced from what our prior expectations were. But with the throughput, the combination of the throughput and the slightly higher grade, I was assuming that part of that could be part of the improved recovery could be attributed to both those factors. Right. Longer retention time given the. Given the lower tonnage. So I guess I'm just like, are you expecting throughput next quarter to be up from where you are? I mean, you're halfway through the quarter at this point, so can you, can you let us know how it's going at pv?
Tim
Yes, that throughput continues to increase over the year. And I mean, I think your observation is exactly correct and it's about understanding that so that we can work out where we need to invest to either debottleneck the throughput or lift the recovery at the throughput rate we run through. So I think it's a correct observation. And we continue to push throughput this quarter and into Q3 as well.
Anita Soni (Equity Analyst at CIBC World Markets)
And then just a quick question on the. Could you just give us the key drivers of where you're seeing the production improve quarter over quarter from Q1 to Q2? So we have an idea of which, you know, and what the driver like, which assets and what storage, what's driving that? Not every asset, but just maybe the movers. Yeah.
Mark Hill (President and Chief Executive Officer)
No, no. So we see obviously improvements across the board as we go into the third and fourth quarter. And Anita, that a lot of that is just due to the fact which I'm going to try and change this, where we punt all the maintenance and shutdowns into the first half of the year to try and bolster the fourth quarter, which I'm sure we're not the only ones who do that. But as far as other changes may be down in the weeds a bit. Let me just ask each of the coos to give you an answer. So can we start with you, Seb? If there's obviously Lulu Concotto or Ramp up, is there anything else Anita should know?
Sebastiaan Bock
No, I think you'll see most of the sites, especially Kibali. We're also. You'll start seeing the production improve. There's been a lot of, you know, some maintenance work in this first quarter. So I think. But Lulagonkata for us really, as you say, is the key one.
Tim
Okay. Tim. The key for us is that we keep continuing the Gold Rush underground expansion. So you'll see Cortez was. Was up for the quarter and that's really the key driver there as we deliver that body of work. Okay. And Gay Porgar is obviously improved. Exactly. So Paul Grote experienced a challenging first quarter due to some sort of one off events and also planned maintenance. So we should see an uptick for Q2 and Belladera should be broadly in mind.
Mark Hill (President and Chief Executive Officer)
So no big change. Yeah, Valadera. And they just sell it clear because we did pull some outs as far as you would have seen into Q1. So again, it's just we're just drawing down inventory on the pad, so we'll have to pay for that in Q2 at Belladera.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
Okay. And then my final question. So there was some a press release, I guess came out April 28, update on the IPO process. I was intrigued by your comment about commentary about bringing discussions on bringing 4 mile in into the fold, I guess. And I'm not sure if it said earlier than planned or not. Or maybe I was just reading into that and hoping for that. But could you give some color on what Exactly? How does 4 Mile fit in? What are the nature of the discussions with Newmont at this stage?
Mark Hill (President and Chief Executive Officer)
Sure. So look, the relationship with Newmont has, well, completely changed. So one of the things we do offer Newmont is look, come in and have a look at four Mile early because eventually it has to come in the joint venture and Newmont will be part of that. Now, the trigger, as you point out, is not now. It's not till, I think, the feasibility in 2029 where we have to actually reach agreement. But they're seeing no reason to not give them full access to the data and then we can have a discussion going forward about how we want to manage it. They're still going through that data, so I really haven't got an update past that.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
I guess I was wondering, is there any possibility of coming into the fold earlier than the feasibility study you mentioned the PFS is doing or it will be done in 2028. So I'm curious as to whether or not you can come to an agreement to bring it.
Mark Hill (President and Chief Executive Officer)
Bring it forward, Nate, if we can reach an agreement, I mean, we would bring it in for sure. I mean, that's not an easy question to answer because obviously it's a PA level. Who's comfortable on which parts of it and we'll have that discussion. Like I said, though, it will be an open discussion and we'll just see if we can bring it in early. We will. And if we can't, we'll leave it as per the current agreement.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
Okay, I will stop there and hopefully Tanya can get on and probably ask a question around the. Around the audit that is doing. Thanks.
OPERATOR
Actually, operator, I have. Tanyak, I've got your actual email, so I'm not sure. Do you want to try once more to see if you can actually ask the question? Otherwise I'll read them out. Sure. Tanya Jakuskinek, you are allowed to speak now. Please go ahead and unmute yourself.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
Can you hear me now?
Mark Hill (President and Chief Executive Officer)
I can hear you now. Thank goodness. I thought you were going to get a complex.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
Oh, my goodness. Okay, man, I feel like, you know, what's his name? Tom Hanks goes. Yes, Houston, we make contact here. Okay. All right. Thank you for trying three times. And first of all, I do want to say, Mark, congrats on improving the safety at Nevada goal lines. I'm assuming that's the majority there. And one of my first questions on Nevada gold mines is you've seen that improve in productivity. Have you also seen an improvement in the turnover?
Mark Hill (President and Chief Executive Officer)
So that's a good question. The turnover hasn't changed as far as I am. I'm looking at vessel and Tim, they're nodding. So I think, look, I think the. Well, I'm just going to say I think the morale and the. And the excitement about NGM and where it's going is definitely evident on the ground. I mean, I was there actually with Natasha last week and we went and did a line out and everyone seems focused. So I, I would hope that that turnover number starts to improve. But no, it hasn't as yet.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
And can you remind me, was it 12% or is that 5%?
Mark Hill (President and Chief Executive Officer)
Sorry, Tanya, I have trouble hearing you. So it's. I thought it was 12 or is it 12 or 14%. 14%. 14%.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
Okay. Okay, thank you for that. And just again, at Nevada gold mines and I know I need to ask on bringing new launch in earlier for 4 mile, once it's included in, is there anything in, you know, in your discussions with them? I know that you only have a pea and they like to have a feasibility study because you need to have reserves, I guess, for, you know, us gap or for them to kind of do any calculations. But is there a way that this could be also brought in, you know, over a period of time? Is that an option? As well,
Mark Hill (President and Chief Executive Officer)
actually, Tanya, I'm not sure, like I think, sorry and I. Look, I don't want to speak on behalf of you, Montita here, so I
Tanya Jakuskinek (Equity Analyst at Scotiabank)
need to be a bit careful. But
Mark Hill (President and Chief Executive Officer)
like I said, I like it. They have all the information now, including all the financial model and if we can bring in it early, I. I can't see how that is not a advantageous to both of us. But I really can't say much more than that and I certainly can't speak to what they're thinking at this stage.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
Okay, thank you for that. And if I could ask on just Malle, you know, obviously a lot of country. Country issues that are occurring there and I keep getting asked on the impact to you and your operations, supplies and other. Can you just give us an update on anything, any impact that are happening to you because of, you know, country, country issue versus your own, you know, how you're doing your mind.
Mark Hill (President and Chief Executive Officer)
Sorry, Tanya, you're talking just specifically Mali.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
Yes, yes, specifically Mali.
Sebastiaan Bock
Okay, look, I'll start off and then I'm going to hand over to Seb. So obviously we've had a good run, as you've seen, so we've been unimpeded in getting this thing up and running, which was a pleasant surprise. And the roadblocks or the difficulties that Seb's facing? Actually, I'll hand over to Seb and let him speak for himself if there's anything he wants to highlight. Look, Tanya, we haven't had any impact on our operations, our supply chains coming through Senegal, so it doesn't really impact us. The roadblocks that's into Bamako. We've got at least five months of supplies on, you know, our key inventory holdings. And most of our contractors are local, so really. And diesels also not be an issue. We've secured about three months of stock with a strong pipeline, so we're operating as normal at the moment. And there's been, there's been an impact.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
Okay, and then Mark, if I could just ask my final question just on the IP of the North American assets, can you just review with us the timeline of all of the documentation? First of all, all the documentation documentations that are required, sort of the timeline that you need them all filed and available to the public before so that you can make your year end deadline. So if we don't have it by X, you know, date, then do we slip into 2027? So I'm just trying to understand documents that we need, I think order director, financials, etc. And when can we get this in the market.
Mark Hill (President and Chief Executive Officer)
Okay, Tanya, look, obviously I know the high level timeline, but let me hand it over to George and he can probably give you a bit more granular data.
George
Hey, Daniel, how are you? Sorry. So just in terms of answering your question. So we need to file with the sec, read to file with tsx. You know, I know it's frustrating, but our advisors tell me that I can't say much, but effectively what we're looking at is we'll be public sometime late in the summer, which then allows us to access the market in the fall. Which is why we're confident that we can do this by year end. So just to be clear, we've been working since the board gave us the approval at the last board meeting. We've been working on these documents. Like you said, the financials, it's. Those have all been done and we're in the process of filing all of that. And like I said, will be done by late summer. You'll have all the information, we'll be able to answer all the questions.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
And am I correct that you need three year financial. You need to file technical reports on the Battagon mine four Mile in Pueblo Viejo? Again, does that. Correct assumption.
George
That's correct. So the team has done like. The perimeter is obviously NGMPV plus 4 mile and that's what the financials will reflect.
Tanya Jakuskinek (Equity Analyst at Scotiabank)
Look forward to getting those documents. Thank you for taking my questions and thank you for your patience.
Mark Hill (President and Chief Executive Officer)
Thanks, Tanya. Not to hear from here.
OPERATOR
Our next question comes from Martin Pradier at Veritas. Your line is open. Please unmute and ask your question.
Martin Pradier (Equity Analyst at Veritas)
Can you hear me? Yeah, we can hear you, Matt. Perfect. Can you explain how the equity pickup in Kivali was 204 million in Q1 and this is similar to the equity pickup in the whole year 2025?
Sebastiaan Bock
I'm not sure I understand that question. Seb, can you answer that? Sorry, just repeat it. I didn't get that. I'm sorry. Yeah. The Equity pickup in first Q2026 for Kivali was 204 million, which is similar to the equity pickup that you had in the full 2025. So what happened? I mean, it's much higher than. Than the same quarter last year. What happened there? Is there any extraordinary thing? I mean, there's nothing extraordinary. So I think what I would suggest is to send us an email so that we can understand exactly what you. What you're pointing to. Sorry, Bruce, do you want to comment? He's not online. Okay. All Right. Sorry, Martin, can we come back to you on that? Yeah, sure. Hang on. Sorry, just one minute, man. Yeah, so this is mainly the reversal of the super profit tax. That is our current answer to you. If there's anything more, we'll follow up with you offline. The reversal of what super profit tax? Okay, and how big. And how big that was? I don't know, Martin. Look, can we follow up? Offline, I think and we'll get you. Maybe it's too detailed. That's fine, thank you.
OPERATOR
It's not too detailed. I just don't know the answer. Our next question comes from Steven Green with TD Securities. Your line is open. Please unmute and ask your question.
Helen Kai (Senior Executive Vice President and Chief Financial Officer)
Yeah, good morning everyone. Just a quick follow up, I guess. This one's for Helen. Regarding the ncib, are there any restrictions in buying back shares once the IPO process is underway?
OPERATOR
Hi, thank you for your question. Yes, there will be blackout period. According to all the regulations. Our buyback will be executed only when it is regulatory possible. Okay, great. Thank you. Thank you. Our next question comes from Brian MacArthur at Raymond James. Your line is open. Please unmute and ask your question. Brian, your line is open. Please go ahead and unmute and ask your question. It seems we operate. It seems we have the same problem again, Brian, you're welcome to email the question. We will answer them.
Brian MacArthur (Equity Analyst at Raymond James)
Sorry. Hi, Mark, can you hear me? I can hear you now, Brian, yes, sorry about that. I don't. I just having a hard time here too. I'm just following up on one of your earlier questions about non core assets. You mentioned Portera. But is there anything on the copper side historically with some discussion that over time Zawidar might be potentially divested? Can you comment on that at all, please?
OPERATOR
Yeah. So there's no process or anything going on at the moment to do best of seldom though. Thanks very much. That concludes our Q and A session for today. Back to Cleve for any closing remarks.
Cleve Rickert (Head of Investor Relations)
Great. Thank you everyone for joining us today. We look forward to speaking with you again on our second quarter results call in August. As always, please get in touch with us if you have any questions, further follow up questions. Thank you. Thank you. Cheers.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
Login to comment