Barrick Targets Peruvian Expansion Amidst Record Gold Prices

Zinger Key Points
  • Barrick Gold targets Peru's Puno district, which it explored two years ago.
  • After a successful reserve replenishment in 2023, the company looks for organic growth and an expansion into copper.

Barrick Gold Corp GOLD is expanding its operations in Latin America amidst a surge in demand that saw gold spike to $2,300 per ounce for the first time ever. The leading global gold miner is eyeing the southern district of Puno, Peru, where it conducted exploration activities two years ago.

As reported by Gestion, a local newspaper, Barrick submitted a request for a 400-hectare concession in the region where it already holds a foothold with the Pataqueña vein. Its other Peruvian interests include the Libélula project and a recent agreement with Xali Gold Corp CGDXF regarding the Tres Marias gold-silver property.

Now Read: Gold Continues Its Bull Run, but Silver May Outperform in This Macro Environment

Barrick’s successful 2023, marked by an increase in gold reserves to 77 million ounces and a remarkable replacement rate of 112% for annual gold equivalent production, showcased its proficiency in managing depleted reserves. Since 2019, Barrick organically added 29 million ounces of attributable reserves, demonstrating sustained growth of its resource base.

The timing of Barrick’s expansion efforts coincided with a historic surge in gold prices, as the price of yellow metal rose by around 11% year-to-date. This rally was a result of various geopolitical uncertainties that prompted investors to seek safe havens and the expectation of interest rate cuts by the Federal Reserve.

Looking ahead to 2024, Barrick remains focused on maximizing the potential of its assets, both in Latin America and globally. In addition to its endeavors in Peru, the company prioritized projects in Nevada, where it operates three Tier One gold mines. Despite delays in permit approvals and commissioning, Barrick's management is working on promising projects in every notable mining jurisdiction throughout the world, demonstrating that the company's human resources are its vital assets.

"Barrick's focus on Tier One assets and the results they are producing show unquestionably that its management ranks at the forefront of the industry's leadership. Through continuing investment in human capital, Barrick is recruiting and developing its next generation of high achievers," said Chairman John Thorton in the latest annual report.

CEO Mark Bristow anticipated significant developments in the coming year, including accelerating projects such as Goldrush in Nevada and expanding Pueblo Viejo in the Dominican Republic. Furthermore, Barrick’s strategic investments in copper, particularly the Super Pit expansion project in Zambia and the Reko Diq project in Pakistan, position the company to become a world-class copper producer.

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Also Read: Copper Futures Prices Diverge from Spot Prices, Citi Sets A Two-Year Target

Photo: Aleksandar Grozdanovski via Shutterstock

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