Barrick Mining CEO: We are guiding 30% growth in production of gold and copper

Barrick Mining CEO: We are guiding 30% growth in production of gold and copper

Barrack Mining. It formerly was Barrack Gold ringing the opening bell today. It will trade now under the new ticker symbol B and the company was out with an earnings beat this week getting a boost from higher gold and copper prices. Joining us now at Post9 is Barrack Mining CEO Mark Bristol. Good to have you here Mark. Um in honor of uh the new name, I’m going to start with copper instead of gold because it’s an interesting time. I mean, a lot of unsettling things potentially in the global economy and yet copper’s been kind of moving up and showing some strength. I I’m curious as to what you’re seeing and whether you’re puzzled by it. Yeah, I certainly am puzzled by it because you know normally copper uh follows the global economy and right now it’s uh it’s moving against the trend and that’s important because we’ve all been talking about tightness in the supply side and also a big demand coming. uh everyone’s been hesitant to bet get uh with that because um the economy has been iffy and I think what’s interesting is that we’re starting to see that and it couldn’t be a better time for Barrack as we bring in new production and and we lead the industry in new bold go uh copper production right so that tightening is obviously helpful very helpful um all right let’s talk gold as well um you said on the call, I believe you’ve got, and I don’t want to misquote you, but I’m reading a transcript, very little inventory left ahead of us, constantly buying assets. So, for those who would think, well, it’s just great gold’s going up. You know, on the discovery and production side, sort of give us a sense as to what you’re seeing when you say that about inventories. I think if you look back to the turn of the century, the gold industry really hasn’t replaced what it’s mined through the drill bit. What it’s done is unlocked lower quality gold deposits because the gold prices just kept rising. What we’ve done in Barrack of course is we’ve invested in our future and what you see is a significant growth uh looking forward to the end of the decade. We are now guiding a 30% growth in our production of both metals. We call it gold equivalent ounces. Well, how does the the cost of that production shake out? I mean, are you having to go farther a field and spend more to to get it out of the ground? I think what we’ve seen is that a there’s a lot of harvesting going on because of exactly that. A higher gold price unlocks uh gold inventory that’s in your resources, moves it to the reserves, and so that adds to production, but it doesn’t build long uh doesn’t build runway in the in the industry. And what what we’ve always done and what I’ve done my whole career is focus on that runway long-term viability. Um I’m thinking of some of the energy companies we’ve heard from this week given what’s happened to crude. I mean they’re talking more about efficiency than production increases. Can you imagine an environment where that comes to your space anytime soon? Yes, Carl. And I mean we saw it in 2015. remember we we had that big um uh rush of M&A during from 2011 to 2013 and then we had that decline in the gold price and everyone landed in a bad place but we became more efficient as an industry. I think the oil and gas industry is leading in in being able to manage the market because they invest uh way ahead of themselves. And I think that’s a a big lesson for the metals industry, the mining industry. Um all right, the big question, what’s going to happen to gold? I mean, this move is historic. Correct me if I’m wrong, Mike, but I think over the last 20 years now, you would have rather owned gold than the S&P or very close to it. Can it continue? Is this a new base? Are we going to go to what 6,000 the way at least some JP Morgan says is a possibility? You know, David, the one thing that you can be bet on is that the predictions are wrong. I’ve been in this industry for my whole career. Um, but what’s real is that gold is measuring a chaotic global economy. And it is chaotic and and when you if you can address the chaos, there’s still an embedded uh financial issue about and we’ve seen ddollarization of many of the emerging market um central banks and and gold has taken a new place in in the world as as a currency as a currency that no politician can print. And it’s been reinforced because these central banks have been using their gold reserves to buy I mean correction re using their dollar reserves to buy gold and the gold price has gone gone up. So their um their balance sheets have improved and so it’s an interesting time and I think it’s I always say to people try and imagine what it will take for us to get the world back to 1999. That’s a long way away from where we are today. You mean in in terms of global debt? In terms of global peace, of a global economic community, of supply chain efficiencies, every aspect of our everyday life was a lot better then than it is today. We’re in a chaotic phase of, you know, the um global economy. Well, what’s your view? I’m curious then especially given what you’re seeing from your end customers in terms of the impact of tariffs as well on whatever you’re providing to them and they’re selling. So, so I think that look we we’ve got to manage it. We’ve we’ve used to managing dynamic situations in the mining industry. You wake up every day to a crisis and there’s another few in the afternoon after that. But um but for me the the the pre the the the risk is still on the upside for gold. It’s very pleasing to see uh copper starting to tighten and and and adjust and because that’ll bring some more investment into the into the um into this sector. Uh Marco always appreciate it. Thank you. Thank you for being here.

Mark Bristow, Barrick Mining president and CEO, joins CNBC’s ‘Squawk on the Street’ to discuss how his company is getting a boost from higher gold and copper prices, the unlock of metals mining, and more.