Barrick Mining (NYSE: B) says new drilling along the ARK-KCD corridor at its main Kibali mine in the Democratic Republic of Congo (DRC) confirms “significant additional orebodies” that could stretch the tier-one asset well beyond its current 10-year life.
Since pouring first gold in 2013, Kibali has replaced every ounce mined, and in-country investment has topped $6.3 billion.
In a call with reporters, CEO Mark Bristow added that a 16 MW solar-plus-battery plant has pushed Kibali’s renewable share to 85%, allowing the site to run entirely on green power for half the year. Underground productivity upgrades are slated to lift output from the third quarter onward.
Barrick shares fell 2.7% to close at $18.86 in New York on Wednesday, for a market capitalization of $37 billion.
‘Outperform’ rating
In a recent note, RBC reiterated an “outperform” rating and lifted the target price for Barrick $26.00, implying a further 22% upside.
Kibali plays a crucial role in the local economy of the DRC’s North East region. Over the past decade, it has helped develop a thriving regional economy, supported by partnerships with local businesses and communities.
Barrick has invested almost $3 billion in Kibali, including deals with local contractors and suppliers.
The mine is owned 45% by Barrick, 45% by AngloGold Ashanti (JSE: ANG; NYSE: AU; ASX: AGG) and 10% by Société Miniére de KiloMoto (SOKIMO).
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