Gold.com, Inc. Q3 FY2021 Earnings Call

Welcome to the Barrick Gold 2021 Third Quarter Results Conference Call. During the presentation, all participants on the phone are on listen-only mode. Following the presentation, we will conduct a question-and-answer session. As a reminder, this conference call is being recorded, and a replay will be available on Barrick’s website later today, November 4, 2021. I would now like to turn the conference over to Mark Bristow, Chief Executive Officer. Please go ahead.

Thank you very much. It’s a good morning to everyone here, and good afternoon to those further east, as well as a good morning to our friends and colleagues back in the States. Welcome to Barrick’s third quarter results presentation. The world has been dealing with COVID for over a year and a half now, and while vaccination efforts have made some progress, the pandemic continues to affect our lives and operations, especially through the ongoing supply chain crisis. The mining industry is also adapting to the growing importance of ESG as an investment criterion while trying to focus on performance for the next quarter. It’s perhaps not surprising that many companies, including some industry leaders, are making promises that seem optimistic, relying on future technologies and unidentified solutions, hoping that the next generation of managers will find answers before deadlines expire. In contrast, Barrick has always taken a different approach. I will showcase today that our commitments are based on practical, commercially viable plans. Please note our cautionary statements, and further details are available on our website. Central to our strategy is a robust sustainability approach, integrated into every facet of our business, emphasizing that sustainability is not just a corporate duty but a shared responsibility at every level. Building trust and partnerships with stakeholders, especially host countries and communities, is crucial. Our investments take various forms, from community development initiatives at all our mines to enhancing the skills and capacity of local workers and suppliers, amplifying our positive impact on local and national economies. Our commitment to prioritizing local hiring has resulted in a workforce predominantly composed of local nationals, especially in leadership roles. Last year, we dedicated $4.5 billion, representing 75% of our total procurement spending, to local suppliers. We engage openly with community stakeholders to discuss risks and opportunities linked to our mines and to resolve any issues. The expectations for corporations have evolved beyond merely generating profit, paying taxes, and adhering to regulations. Barrick creates real value for its partners not only through shared economic benefits but also through responsible environmental stewardship. The well-being of our employees is a primary concern due to the nature of our business; even though our safety record has steadily improved, we faced two fatalities in the past quarter. We conducted a group-wide workshop to examine the causes of these tragic incidents and to develop preventive measures. Regarding COVID-19, we continue to manage its impact on our operations effectively. Our main focus now is to ensure all our employees receive vaccinations. To date, 35% of our workforce is fully vaccinated, and an additional 13% have received their first dose. Our LATAM region leads the vaccination efforts with 67% fully vaccinated, while Nevada Gold Mines currently lags at 32% vaccination. We believe this lower number stems mainly from vaccine hesitancy, and our team is actively promoting the vaccine's safety among employees. Environmentally, we achieved no Class 1 incidents this quarter. Our water management strategy has improved fresh water conservation and boosted recycled water usage, increasing our recycling rate from 78% in 2020 to 83%, putting us on track to meet, or even surpass, our 2021 water efficiency target of 80%. Additionally, we completed an independent human rights assessment and training program at Pueblo Viejo and Loulo-Gounkoto, which is now being rolled out to our other operations. We have set a goal to reduce greenhouse gas emissions by 30% by 2030, guided by a clear roadmap that outlines our approach based on actionable projects that are already in place or underway, without requiring changes to our production profile. We are confident we will achieve at least 25% emissions reduction ahead of our 2030 target and are addressing the remaining 5% effectively. A question raised earlier was about the costs of these initiatives. Our perspective is that they will lead to enhanced efficiencies and lower operating costs, making them genuine investments not just in our responsible future but also in Barrick's better business model. Operationally, we had another solid quarter despite some challenges, marked by various key performance indicators. The African, Middle Eastern, and Latin American regions performed well, while Nevada showed quarter-on-quarter improvements despite being near the lower end of its guidance. Overall, Barrick remains well-positioned to meet its annual production targets. Our exploration teams also had a productive quarter, and two years post-merger, we have established a solid foundation of high-quality mines and promising projects. Key operational highlights include well-managed costs, successful ramp-ups at Veladero and Bulyanhulu, effective management of the Goldstrike mill challenges, and substantial contributions from our copper operations. Overall, we anticipate a strong end to the year. Our financial results indicate strong free cash flow, supporting a robust balance sheet and growth opportunities. Notably, we are returning a record $1.4 billion to shareholders in 2021 through our final tranche of the $750 million capital return and a sustainable quarterly dividend of $0.09 per share. This marks the highest return Barrick has ever provided to its shareholders in a single year. Moving to operations in North America, Nevada experienced a slower first half, as explained due to major planned shutdowns, but despite challenges with the Goldstrike mill, which was repaired at the end of the third quarter, production improved significantly in this past quarter, demonstrating the expertise of our Nevada Gold Mines team. Hemlo in Canada faced COVID-19 challenges affecting our ramp-up of underground development. However, the Donlin project in Alaska is progressing well. In Nevada, we are seeing growth across all our core districts, with our exploration teams successfully extending mine life plans and seeking new discoveries. Carlin increased production and reduced costs, adjusting to process higher carbon-grade ores post-mill repairs. The North Leeville project is on schedule to deliver its maiden resource by year-end, highlighting the benefits of the Barrick-Newmont merger. Recent drilling yielded the most impressive intercept in Carlin history. Follow-up drilling is underway, targeting the ample potential in the greater Leeville complex. In the Carlin complex, our underground resource drilling at REN has confirmed the growth potential, particularly on the western side next to the infrastructure. We have undertaken extensive evaluation of this opportunity and expect to announce a maiden resource by year-end. Post-quarter, we completed the South Arturo/Lone Tree asset swap, streamlining our portfolio and securing 40% ownership of South Arturo. At Cortez, despite the Goldstrike mill issues, we increased production nearly 20% over the last quarter by prioritizing underground oxide ore and boosting heap leach production. The Goldstrike mill's reopening positions Cortez for a strong finish to the year. We have successfully tested the Hanson and Voodoo fault targets at Cortez Hills for expansion. The Goldrush project has received regulatory process updates, and our first metallurgical batch passed through the Goldstrike roaster as anticipated, positioning us well for year-end reserves updates. We continue to explore for potential linkage between Goldrush and Fourmile, with a feasibility study expected to conclude around 2024-2025 and mining operations anticipated by the end of our 10-year plan. Turquoise Ridge, a Tier 1 mine, is undergoing significant transformations to improve its performance, including the commissioning of a new shaft that will enhance efficiency. We are trialing electric trucks which have shown promise but require further development. Exploration has unveiled potential between Turquoise Ridge and Twin Creeks, with high-priority targets identified for testing. Phoenix remains a stable, low-cost producer with a 10-year mine life, while Long Canyon has limited long-term potential and will undergo future evaluation. In Canada, Hemlo has faced delays due to COVID-19 but is transitioning to a modern mining approach with external support. While we’re now getting back on track, the ramp-up will take time. Hemlo remains a strategic investment, particularly as it shows resource growth potential. Our teams are actively searching for opportunities in the Canadian gold sector. In Alaska, the Donlin Gold project, one of the largest undeveloped gold deposits globally, is advancing, with geological studies scheduled for updates in early 2022. In Latin America, we've made crucial investments while also navigating challenges, with Veladero and Pueblo Viejo contributing positively to production. Veladero’s expansion projects aim to rejuvenate its production capabilities, and the planned expansion of Pueblo Viejo ensures a long mine life. We’re also negotiating additional environmental assessments and have confirmed new exploration targets in both the Pueblo Viejo and Veladero districts. Our efforts in the Pascua-Lama project continue to face challenges, but it holds significant potential. Additionally, we’re pushing forward exploration initiatives across neighboring countries. We’re continually working toward reopening the Porgera mine in Papua New Guinea, which is currently under care and maintenance, with an emphasis on securing a special mining lease through consultations with local stakeholders. Our operations across Africa and the Middle East remain strong, evident in sustained performance and opportunities we are uncovering. Mines like Loulo-Gounkoto are exceeding production expectations, while ongoing energy management initiatives aim to enhance efficiency. We also see promising developments in Senegal and Côte d'Ivoire, as Tongon extends its life through effective mineral management. Kibali remains committed to production targets and improves cost-efficiency significantly. We continue to have ongoing discussions over financial challenges with the DRC government, but are optimistic following political changes that favor investment in the mining sector. Our flexible resources in Kibali, complemented by exploring the surrounding land, position us for growth moving forward. We are also enhancing exploration efforts in Zambia and across our copper operations, with significant plans in motion to extend the productive capacity of mines like Lumwana. With recent developments in Egypt, we are establishing a fieldwork presence in a promising, underexplored region. As I conclude, our commitment to creating value for all stakeholders remains unwavering, a journey we continue to undertake as the industry evolves. Our future is focused on sustainable practices and exploring new opportunities, as evidenced by our response to investor interest in expanding our operations to meet future needs. We understand mining is a long-term commitment and requires a steady investment in sustainability. I emphasize that our workforce is always at the heart of our achievements. As we look ahead to the next five years, we are well-positioned for growth, and I am confident in Barrick’s aim to be the most valued gold company in the world. Thank you for your attention. We are now open to any questions.

Hi. Thank you very much, Mark. This is Paul Gait from AzValor. I have a question about the project pipeline in North America. It's noticeable that while you have a number of projects with reserve definition, only a few have progressed to the prefeasibility stage, dropping from 12 to 3. I'm curious about what influences this significant decline in the number of opportunities and what the potential is for increasing that number beyond the current category. Thank you.

Yes, that's a very insightful question. A significant part of the issue relates to the unique relationship between Barrick and Newmont in Nevada. I’m not taking sides here, but the boundaries between them don't dictate ore bodies. Newmont had established infrastructure but faced a declining resource and lack of future focus, whereas Barrick held high-quality deposits with the right grade but in a less optimal location, concentrating on debt repayment and high-grading its assets. When we entered, there was limited data available, and our first step was to hire geologists and allocate them to focus on mineral resource management to enhance planning, geo-tech, and geo-hydrology, and to extend the ore body reach, as there were shortages in that area. As we emphasized the 10-year plan, we have now extended our view to 15 years, and while putting it together, we uncovered numerous opportunities. For instance, the Leeville area, which is an extension of Newmont's Carlin operations, had seen extensive drilling, but little focus on geological modeling. We've identified a target of about 5 to 10 million ounces there, which took time to drill because of the depth involved. Carlin deposits are relatively easy to locate, but once found, they can be small and challenging to extract. We are observing similar potential with REN and other areas like Rita K, which also highlight geological models but lacked sufficient drill holes and hydrology data. This indicates significant reserve potential, not just resources, but actual drilling is necessary. It's been a 2.5-year effort, or two years specifically in Nevada, and we are now at the point of making maiden resource declarations. Similarly, Turquoise Ridge was previously partly owned by Newmont and reliant on Twin Creeks’ processing. Barrick had high-grade ore limited by Newmont’s processing capacity. Once we integrated operations, we had to recalibrate our geology and geo-tech perspectives. We've reached a point in Turquoise Ridge where we now possess complete models for effective planning. Additionally, both companies were previously centrally controlled, with much planning influenced by the CEOs rather than the ore body's quality. We've shifted that focus back to the mine level, allowing for greater control over its business plan. Exploration for new fields has been minimal, but I assure you that Carlin still holds potential. In my early years as a geologist, I rarely saw high gold grades, but now we're uncovering promising greenfield targets, though it will take at least two more seasons to reach long-term visibility. Last year, we observed significant hydrothermal geochemical footprints associated with Carlin deposits, and we believe Turquoise Ridge and Twin Creeks area has promising potential. We've conducted initial testing to examine the geochemical halo and are now targeting specific areas based on scientific methods, which have not been prevalent in North America for some time. The situation in Canada involves limited existing portfolios, necessitating our own development efforts. North America is short of advanced projects but has the potential resources we can cultivate through our investment criteria. In Africa and the Middle East, Randgold's experience enables us to forecast our conversions accurately as part of an integrated strategy. Latin America also faced challenges but has potential, which made it sensible to focus on North American assets while exploring divestment options elsewhere. Lastly, beyond the Russian and Chinese gold belts, we have qualified professionals in every gold province worldwide, and we are actively pursuing opportunities there. I hope this answers your question.

Hi, it's Mike Michael Bedford from WoodHill. Mark, at company level, your unit cost increases seem to have been remarkably well maintained at a good level given all the inflationary pressures we’re seeing. Can you perhaps share some light in terms of how you've done that and how you see inflationary pressures in the short-term and some of the sticky ones for the longer term?

Yes, I've mentioned this before, Mike. When you approach things as if you own them, you become much more focused on managing costs. Barrick is a clear leader in how we deliver value while incentivizing our executives through equity participation, which is a significant aspect of our strategy. We instill a mindset in our people that encourages them to act like owners, and we hold them accountable for it. We've also benefited from synergies following our merger, achieving around $200 million in direct savings from the supply chain, with another $100 million targeted by the end of next year. We've consistently prioritized long-term contracts that limit cost variability. Recently, we reached agreements with key suppliers that led to a 20% reduction in costs. Our longstanding partnerships with primary equipment suppliers also support our maintenance efforts. Moreover, we are dedicated to modernizing our workforce; in Nevada, for instance, we’re incorporating younger, more cost-effective individuals who bring fresh perspectives and skills. There’s evidence of this shift, especially in our operations in Latin America, and while changes in Porgera are still pending, we've restructured management to be more locally focused. At Lumwana, we've nearly halved mining costs through improved efficiency and logistics, which have been critical, especially as we navigated the challenges posed by COVID. Many miners struggle with logistics, but our experience in Africa has taught us its importance. We've also made significant progress locally, improving our logistics operations. However, we still face pressure, particularly from the quality of ore bodies, and I've often highlighted how the industry might be harming itself by distributing all free cash as dividends instead of reinvesting. Higher gold prices are leading many to focus solely on cash margins, neglecting the need to replace mined ounces with high-quality equivalents. Inflation is a concern, with pressure outside the energy sector ranging from 2% to 3%. We're committed to mitigating these pressures every day. When it comes to power, the situation is a bit more volatile, but we have long-term contracts that help us manage costs effectively, especially in Africa. We're also transitioning towards renewable energy sources in a way that enhances our commercial viability. Would you like to add anything?

The only other point I would make is regarding the impact on royalties from our costs. Clearly, in both the gold and copper sectors, we have experienced an effect on our costs due to slightly higher gold prices in 2021. We are currently using a gold price of $1,700, although we have seen prices closer to $1,800. On the copper side, we were utilizing a price of $2.75, while copper prices have averaged around $4. This is another factor that needs to be considered, which presents a challenge that we can manage.

Sorry, it just emphasizes even better performance from an operational perspective. Anyone else? Can we then move to global questions on the Chorus Call?

Yes, for sure. Our first question from the phone is from Danielle Chigumira with Bernstein.

So with the final tranche of the return of capital declared, when, if at all, would you give the market some guidance on the additional dividend that it could expect above the $0.09 a share? Isn't there a balance to be struck between returns and reinvestment and do you think you at that right balance at $0.09 a share?

So, Danielle, as you know, we started this year facing a significant challenge after combining three large entities. I've always believed that dividends should be linked to performance. At the beginning of the year, we found ourselves with a substantial cash balance due to the disposal of non-core assets, totaling around $1.4 billion to $1.5 billion. As a major shareholder, I believe that when you earn more than expected, a portion should be returned to shareholders. Therefore, we decided to return $750 million to shareholders and maintained our core dividend of $0.09, which we had increased three-fold since the deal. We have also committed to providing a clearer, definitive dividend policy when we share our 2021 results, and we intend to follow through on that.

That's very useful. If I can squeeze in one more on the greenhouse gas emission, how actively are you considering the use of offsets, sort of mentioned on the slide? And could you also give us a timeline where you'd have more visibility on the decarbonizing pathway for mining equipment?

I believe it's important to acknowledge the progress we've made towards achieving 25% of our goals without relying on religious frameworks. I'm confident that we can increase that to 30% by 2030. As we've noted, we're working on our battery electric vehicles for underground equipment alongside various other initiatives. One significant project involves a major utility vehicle supplier. While there are numerous developments on this front, the experience we've gained from the Sandvik project indicates that the technology needed for reliable planning is still in development. We're committed to investing in this technology, particularly in drilling and transport solutions. While hydrogen is frequently discussed, actual hydrogen vehicles are still scarce, indicating we have challenges to overcome. We are focused on carbon reduction, aiming to enhance efficiencies in traditional engines and energy generation, which can significantly lower greenhouse gas emissions. Vehicle efficiency is crucial, and while there are many battery production facilities, current battery technology still relies on stacks of small batteries. There's considerable work ahead in battery development, and our partnership with Sandvik is making strides in this area. We recognize that the requirements for batteries differ vastly between electric vehicles and heavy-duty trucks underground, which illustrates the journey still ahead. Our investments are critical for managing our Scope 3 emissions related to transportation, and we aim to eliminate or drastically reduce hydrocarbon transport in our mining operations. This is a key priority for us. Importantly, the initiatives I'm discussing are designed to enhance profitability rather than increase costs, and we are dedicated to implementing these strategies in a sustainable manner.

Our next question from the conference call comes from the line of Tanya Jakusconek with Scotiabank. Please go ahead.

Good afternoon, everyone. Thank you very much for taking my questions. I have 3. Maybe if I could start just with Graham. Graham, just when you were talking about the inflationary pressures and did mention the higher ore price impact on costs, then obviously the Nevada tax that you mentioned also in the press release, should I be thinking inflationary pressures of about 2% to 3%? Should I be thinking as we go into 2022 that the upper end of your cost guidance range would be an appropriate level to be at? Or should I be thinking above that, putting inflation on top of that?

Tanya, I think you need to consider the guidance and factor in inflation, as well as make adjustments for the various royalty and power environments. These are the key components that will influence the situation. Additionally, as we pointed out, the new Nevada education tax, while it is a tax, presents itself as a cost and affects these factors. So those are the main considerations. When evaluating the current numbers, you need to incorporate those elements. However, as we look ahead to next year and our strategies, we've discussed the challenges we're facing in our business. Mark highlighted the slower ramp-up at Hemlo and other areas, which will also impact our costs and planning. It's all interconnected.

If you exclude Hemlo from our numbers and consider the other impacts already factored in, our all-in sustaining costs are below 1,000. Hemlo is somewhat unique, and we plan to reduce those costs from their current levels. However, when analyzing the performance of our assets, we must also take into account the grades and the ore bodies that will be mined, as our focus is on the cost per ton. Additionally, we adhere to our gold price reserve limit of $1,200, which adds to the complexity of this issue. The best advice I can give is to wait until February for more information.

I guess what I'm getting from you is that sort of a 3% to 5% inflationary environment, I do get inventories that you have etc. is sort of reasonable.

And where I mentioned that, as Graham said, take the range and increase it. So it's still a range; it's not just taking the highest point.

No, I understand. And maybe Mark, if I have you on, I would just like to have two other questions for you. One, I wanted to talk about just Nevada Gold Mine. You mentioned the vaccination rate of 32%, I think in the U.S. And I mean, I just kind of think of that number, and I think of the productivity, absenteeism with that number, what sort of impact are you seeing on absenteeism and productivity in Nevada Gold Mines? And yes, maybe we start with that, and how do we get through and prove this vaccination rate?

Yes, that's a very relevant question. Nevada Gold Mines took a proactive stance against COVID during the initial wave of infections globally. We remained prepared, alerting the Governor of Nevada to the situation and implementing protocols when operations in Las Vegas halted. This approach proved effective for us. Initially, vaccine uptake in Southern Nevada was strong, but it soon surpassed our efforts due to various socio-political factors. We've introduced several incentives and maintained stringent protocols in Nevada. Until we achieve herd immunity, we are not willing to jeopardize our workforce's safety, which is why mask-wearing, hand sanitizing, and social distancing are mandatory for everyone, including those vaccinated. We faced similar challenges in Canada, where an anti-vaccine sentiment existed, though government measures encouraged vaccination as access to public spaces became restricted. We subsequently mandated vaccination in alignment with societal expectations. In the Dominican Republic, vaccination rates are at 97% due to effective leadership, and in Argentina, while there was initial hesitation, we have not recorded any positive COVID cases in Veladero for four weeks. Our recent workforce survey in Nevada indicated that employees prefer to be treated with respect and autonomy. The prevailing sentiment in America can be dismissive, but we've engaged with our employees, adjusting our approach to acknowledge them as responsible adults. We emphasize the importance of considering fellow workers' welfare. We've seen a 6% improvement in our vaccination rate, reaching 32%, through mobile clinics and educational programs. Despite experiencing a surge in cases, we've managed it effectively by reinforcing protocols. We're committed to ensuring that personal choices do not burden fellow employees with medical costs for decisions taken on individual risks. Our approach to these discussions is respectful and constructive, resulting in a noticeable shift in dynamics. We’ve documented numerous COVID cases without symptoms, contributing to community immunity. However, Northern Nevada faces a higher risk due to underlying health conditions in the population. This virus poses significant dangers for those with untreated health issues. The social responsibility we have is challenging, yet we've managed to maintain safety in our operations globally. The mining industry faces unique challenges since we require workforce participation, and I believe Barrick has taken the right measures to address these issues effectively.

And have you seen that productivity impact from this in Nevada?

Just to give you some numbers, last week we had 20 positive cases among our over 7,000 employees, resulting in 60 people off work. Regarding absenteeism, that's about what we're experiencing, which is less than 1%. This does have an effect on production, especially when a group of individuals in a specific area, like a drill crew, is affected. This leads to a short-term impact that can last up to 10 or 14 days while they recover and return. While there has been some impact, it's minimal from a production standpoint. As Mark mentioned, we reached a peak about four or five weeks ago, but the numbers have been decreasing significantly and are not substantially affecting our production.

And one last final question, if I can, for Mark. I'm just intrigued about, you mentioned, you're looking at your dividend policy for, when you report your financials in Q1 of next year. I'm just trying to think about your stock. It's very cheap. And I'm trying to understand how you balance and would you look at share buyback versus the dividends or combination of both? Thank you.

Tanya, we are open to all possibilities. We view this as a comprehensive approach. Our primary responsibility is to ensure we are investing in our future. Throughout our careers, Graham and I have established dividend policies based on the company’s financial performance. It is essential to establish our dividend, especially in the gold sector, where buybacks also play a significant role. We executed the first mandatory buyback in Randgold in London, which demonstrates our capability in this area. Moreover, the market and analysts influence our valuation, and we believe that being part of Barrick represents a compelling investment opportunity. We are confident that many have already recognized this opportunity. We remain open to share buybacks. However, my Board and I are aligned in the belief that we should not manipulate our share prices through share buybacks or dividends. Our goal is to seize opportunities whenever our shares appear significantly undervalued. Additionally, we recognize the importance of providing a reliable dividend to our shareholders. Achieving either requires us to maintain a highly profitable business, and we are still in the early stages of this journey, having only been at it for 2.5 years while competing with much older companies. So, we are diligently working on it.

I appreciate it. If you trade below bullion value, your shares should be purchased.

I see too many analysts giving us sort of significant values that would suggest that we should be doing that, so.

Our next question from the conference call is from Jackie Przybylowski with BMO Capital Markets.

I think I just wanted to follow-up on a comment that you made earlier Mark about investing in Canada. And you mentioned prospective trends in Canada, it just mean that your thinking today is more on the greenfield side. Can you maybe talk about how you're seeing the growth opportunities, maybe in Canada contrasted with the rest of the world? I know when I saw you in Denver you've mentioned Pakistan as well as being potentially interesting. And I know you've got a lot of other exploration initiatives on the goal. How would Canada fit in on that pecking order?

I believe Canada is one of the most promising regions for opportunities. From what I've observed, the mineral industry there tends to shift from one gold market to another. It's largely about managing a portfolio that might not see much activity during downturns, with only slight increases to inventory in those times. However, there's been a noticeable lack of substantial exploration for some time. You might remember that before COVID, in late 2019, I discussed the need to establish a top-tier exploration team in Canada, which we did, leveraging our existing projects to gain insight into the local landscape. Additionally, we've engaged in various vending exercises in Canada, which has provided valuable learning experiences. We remain open to acquisition opportunities, provided we can create real value, which has always been our focus. We see significant potential in Canada, where we can identify and assess opportunities effectively. This doesn't mean we won't seize an opportunity when it arises, but my track record emphasizes organic growth. We're also willing to enter competitive situations for valuable prospects, and I don't anticipate changing this approach.

I was hoping to get your thoughts on Reko Diq. In September, you mentioned that it was something you were considering getting back into. Is that still the case, or should we view it as a longer-term opportunity?

No, it's a very real opportunity. We work hard to secure an award. When I joined Barrick, there were numerous conflicts with host countries, and we've gradually resolved them, turning them into genuine win-win situations. Reko Diq is a world-class asset, primarily due to the investments Barrick and Antofagasta made in the joint venture, placing it among high-quality assets. We have the chance to develop it without incurring additional costs since we already have the award from our initial work. Simultaneously, we regain our award, and the host country benefits alongside us, ensuring that everyone benefits. In today's world, trying to extract large sums from emerging markets is unrealistic. Moreover, we don't face the risk of upfront investment. Thus, this asset makes sense for us, and we are actively considering it. We will continue to engage with host country governments and other stakeholders to explore how we can manage Barrick's risk and investment risk while delivering true value for all stakeholders, as we do in every country where we operate. That's our approach.

There are no further questions register in the conference call, sir.

Thank you, everyone. I appreciate your time, and I'm looking forward to answering any questions you may have. If you haven't had a chance to ask yet and would like to, please feel free to contact me or the rest of the team, or reach out to Lois or Kathy. We will be happy to provide answers. Thank you again to everyone who made the effort to join us today. I appreciate it. Thank you.