Cortez mine in Nevada to become flagship digital operationSeptember 12, 2016
TORONTO, Ontario & SAN JOSE, California — Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) (Barrick or the "company") and Cisco (NASDAQ: CSCO) today announced they will partner for the digital reinvention of Barrick’s business, bringing together cutting-edge technology and expertise to unleash the full potential of mining.
"We are proud to partner with Cisco to drive our digital reinvention," said John L. Thornton, Barrick's Executive Chairman. "Harnessing the potential of digital technology will unlock value across our business, helping us grow our free cash flow per share. In so doing, we will make ourselves into a leading twenty-first century company—enhancing productivity and efficiency at our mines, and improving decision-making and performance across every area of our business. We mean to create value and push the boundaries of our industry in entirely new ways. Just as importantly, digital technology will allow us to reduce our environmental impact and be even more transparent with our local partners—especially indigenous communities, local governments, and NGOs."
Cisco Executive Chairman John Chambers said, "We are going through the greatest technology and business transition ever—the Digital Era—which will dwarf the Information Era and the value of the Internet to date. Any company that fails to reinvent itself by harnessing digital technology will soon be left behind. Barrick has long been known for its focus on innovation, and with Cisco's advanced technologies and strategic network of partners, we can extend the frontiers of the natural resources industry.”
Over the course of the collaboration, Barrick and Cisco will focus on research and development, and jointly use their networks and expertise to drive Barrick’s digital reinvention. In the first step of the collaboration, Barrick and Cisco will work together to develop a flagship digital operation at the Cortez mine in Nevada—embedding digital technology in every dimension of the mine to deliver better, faster, and safer mining. For instance, advanced sensing technology and real-time operational data will be used to inform decision-making. Equipment will be automated for increased productivity, while predictive algorithms will enhance the precision and speed of maintenance and metallurgy. The goal at Cortez is to redefine best-in-class mining.
Building on the Cortez mine digitization experience, Cisco will support Barrick as it transforms its entire business over time—bringing digital technology to all of its mines as well as to its head office. For example, interactive data rooms outfitted with real-time data, analytics, and predictive tools will allow company leaders to work together across the organization. An enterprise-wide analytics hub will enable performance management, and financial and operational benchmarking. New digital tools will improve scenario planning and portfolio management. These new technologies will permit Barrick's leaders to make decisions with greater speed, precision, and productivity; to assess and mitigate risk more effectively; and to provide greater transparency to partners.
Digital technology will also improve Barrick's environmental and safety performance. Predictive data and analytics will improve management of energy, water, and emissions. Real-time data capture will allow the company to be even more transparent with, and accountable to, its local partners—for instance by providing water monitoring information in real time. And the use of digital technology will enhance Barrick's permitting activities, further increasing transparency to stakeholders.
Barrick will apply the same rigor and scrutiny to its new digital projects as it would for any other capital allocation decision. Ultimately, digital reinvention is expected to help Barrick deliver on its vision of growing free cash flow per share over the long term.
As valuable as these new technologies will be in and of themselves, Barrick sees in them even deeper potential: to accelerate the cultural renewal already underway across the company. As Barrick has returned to its historical commitment to partnering, it has placed renewed emphasis on building and maintaining trust with its many stakeholders. The integration of digital technology into the heart of the business will allow Barrick to be all the more transparent with its partners. Furthermore, by embedding technology more deeply into the company, Barrick means to further reinvigorate its tradition as a bold, entrepreneurial company whose people are unafraid to challenge and surpass conventions.
Our vision is the generation of wealth through responsible mining—wealth for our owners, our people, and the countries and communities with which we partner.
We aim to be the leading mining company focused on gold, growing our cash flow per share by developing and operating high-quality assets, through disciplined allocation of human and financial capital, and operational excellence.
Barrick has mining operations in Argentina, Australia, Canada, Chile, Dominican Republic, Papua New Guinea, Peru, Saudi Arabia, the United States, and Zambia. The company was founded in 1983, and is headquartered in Toronto. Barrick's shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol ABX.
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Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner in this press release does not imply a partnership relationship between Barrick and Cisco.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained in this press release, including any information as to Barrick's strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "will", "potential", "mean to", "can", "expect", "would", "vision", "aim", and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to potential improvements to financial and operating performance at Barrick's Cortez mine and other operations that may result from digital research and development investments and collaboration with Cisco and expectations regarding future cash flows. Forward-looking statements are necessarily based upon a number of estimates and assumptions; including material estimates and assumptions related to the factors set forth below that, while considered reasonable by Barrick as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation and exploration successes; risks associated with the fact that certain digitization initiatives are still in the early stages of evaluation, and additional engineering and other analysis is required to fully assess their impact; diminishing quantities or grades of reserves; increased costs, delays, suspensions, and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required infrastructure and information technology systems; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals; uncertainty whether some or all of the digitization initiatives and investments will meet Barrick's capital allocation objectives; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; adverse changes in our credit ratings; the impact of inflation; fluctuations in the currency markets; changes in U.S. dollar interest rates; risks arising from holding derivative instruments; changes in national and local government legislation, taxation, controls, or regulations and/or changes in the administration of laws, policies and practices, expropriation, or nationalization of property and political or economic developments in Canada, the United States, and other jurisdictions in which Barrick does or may carry on business in the future; lack of certainty with respect to foreign legal systems, corruption, and other factors that are inconsistent with the rule of law; damage to Barrick's reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to Barrick's handling of environmental matters or dealings with community groups, whether true or not; risk of loss due to acts of war, terrorism, sabotage, and civil disturbances; litigation; contests over title to properties, particularly title to undeveloped properties, or over access to water, power, and other required infrastructure; business opportunities that may be presented to, or pursued by, Barrick; risks associated with working with partners in jointly controlled assets; employee relations including loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; and availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect Barrick's actual results, and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Barrick. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in press release are qualified by these cautionary statements. Specific reference is made to Barrick's most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements, and the risks that may affect Barrick's ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.