expenditures. Project capital expenditures are distinct projects designed to increase the net present value of the mine and are not related to current production. Significant projects in the current year are stripping at Cortez Crossroads, the Goldrush exploration declines, the Deep South Expansion, and construction of the third shaft at Turquoise Ridge. Refer to page 50 of Barrick’s first quarter MD&A.
g. | Rehabilitation—accretion and amortization |
Includes depreciation on the assets related to rehabilitation provisions of our gold operations and accretion on the rehabilitation provision of our gold operations, split between operating andnon-operating sites.
h. | Non-controlling interest and copper operations |
Removes general & administrative costs related tonon-controlling interests and copper based on a percentage allocation of revenue. Also removes exploration, evaluation and project expenses, rehabilitation costs and capital expenditures incurred by our copper sites and thenon-controlling interest of our Acacia and Pueblo Viejo operating segments and South Arturo. Also removes thenon-controlling interest of our Loulo-Gounkoto and Tongon operating segments commencing January 1, 2019, the effective date of the Merger, and includes capital expenditures applicable to equity method investments. Figures remove the impact of Pierina. The impact is summarized as the following:
| | | | | | | | | | | | |
($ millions) | | | | | For the three months ended | |
Non-controlling interest, copper operations and other | | March 31, 2019 | | | December 31, 2018 | | | March 31, 2018 | |
General & administrative costs | | | ($10 | ) | | | ($36 | ) | | | ($7 | ) |
| | | |
Minesite exploration and evaluation expenses | | | (1 | ) | | | (2 | ) | | | — | |
| | | |
Rehabilitation - accretion and amortization (operating sites) | | | (1 | ) | | | (2 | ) | | | (1 | ) |
| | | |
Minesite sustaining capital expenditures | | | (63 | ) | | | (78 | ) | | | (47 | ) |
All-in sustaining costs total | | | ($75 | ) | | | ($118 | ) | | | ($55 | ) |
Project exploration and evaluation and project costs | | | (2 | ) | | | (3 | ) | | | (3 | ) |
| | | |
Project capital expenditures | | | (1 | ) | | | (2 | ) | | | (2 | ) |
All-in costs total | | | ($3 | ) | | | ($5 | ) | | | ($5 | ) |
i. | Ounces sold - equity basis |
Figures remove the impact of Pierina which is mining incidental ounces as it enters closure.
j. | Cost of sales per ounce |
Figures remove the cost of sales impact of Pierina of $27 million for the three month periods ended March 31, 2019 (December 31, 2018: $32 million and March 31, 2018: $32 million), which is mining incidental ounces as it enters closure. Cost of sales per ounce excludesnon-controlling interest related to gold production. Cost of sales applicable to gold per ounce is calculated using cost of sales on an attributable basis (removing thenon-controlling interest of 40% Pueblo Viejo, 36.1% Acacia and 40% South Arturo from cost of sales), divided by attributable gold ounces. Thenon-controlling interest of 20% Loulo-Gounkoto and 10.3% of Tongon is also removed from cost of sales and our proportionate share of cost of sales attributable to equity method investments (Kibali and Morila) is included commencing January 1, 2019, the effective date of the Merger.
Cost of sales per ounce, total cash costs per ounce,all-in sustaining costs per ounce andall-in costs per ounce may not calculate based on amounts presented in this table due to rounding.
l. | Co-product costs per ounce |
Total cash costs per ounce,all-in sustaining costs per ounce andall-in costs per ounce presented on aco-product basis removes the impact ofby-product credits of our gold production (net ofnon-controlling interest) calculated as:
| | | | | | | | | | | | |
($ millions) | | | | | For the three months ended | |
| | March 31, 2019 | | | December 31, 2018 | | | March 31, 2018 | |
By-product credits | | | $24 | | | | $26 | | | | $36 | |
| | | |
Non-controlling interest | | | (8 | ) | | | (10 | ) | | | (11 | ) |
By-product credits (net ofnon-controlling interest) | | | $16 | | | | $16 | | | | $25 | |
Endnote 8
“C1 cash costs” per pound and“All-in sustaining costs” per pound arenon-GAAP financial performance measures. “C1 cash costs” per pound is based on cost of sales but excludes the impact of depreciation and royalties and includes treatment and refinement charges.“All-in sustaining costs” per pound begins with “C1 cash costs” per pound and adds further costs which reflect the additional costs of operating a mine, primarily sustaining capital expenditures, general & administrative costs and royalties and production taxes. Barrick believes that the use of “C1 cash costs” per pound and“all-in sustaining costs” per pound will assist investors, analysts, and other stakeholders in understanding the costs associated with producing copper, understanding the economics of copper mining, assessing our operating performance, and also our ability to generate free cash flow from current operations and to generate free cash flow on an overall Company basis. “C1 cash costs” per pound and“All-in sustaining costs” per pound are intended to provide additional information only, do not have any standardized meaning under IFRS, and may not be comparable to similar measures of performance presented by other companies. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on thesenon-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
| | | | |
BARRICK FIRST QUARTER 2019 | | 14 | | PRESS RELEASE |