North America 'Got Used To Free Money' Leading To Debt, Unsustainable Businesses: Barrick Gold CEO

Barrick Gold GOLD CEO Mark Bristow recently gave his view about the markets and gold reaching a fresh all-time high.

In an interview with The Northern Miner, he noted that the escalating price of gold directly results from global risks.

"There are multiple things, but one of them is global risks, and I'm talking about financial risks," Bristow said. The Chinese 5% growth forecasts signal that they're pivoting away from a construction-driven economy, he added.

A modest growth forecast has raised worries, mainly as the country has historically surpassed 7% in previous years.

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"The Western world, particularly the North American Western world, gets very quickly used to things, and they got very used to free money," he said, adding that such a period has led to increased debt levels and unsustainable businesses.

Geopolitical tensions, including wars in Ukraine, Israel, and the Middle East, along with rising trade protectionism and resource nationalism, are contributing to disruptions in global supply chains. Since Barrick has operations on all the continents, Bristow is closely monitoring these developments.

"You analyze the reaction, particularly the political reaction, and it doesn't fit because the world has become so reliant on each other," he said.

Shifting focus to Barrick Gold’s strategy, Bristow highlights the company’s commitment to exploration. Recently, he spoke to Kitco at the BMO Global Metals Conference in Hollywood, Florida, clarifying that Barrick's most effective growth strategy lies in acquiring large mines with long lifespans over managing multiple small mines. He pointed out the importance of investing in greenfield projects, stating that Barick will spend around 60% of its 2024 exploration budget on such projects.

Barrick Gold’s exploration efforts extend to copper, with projects like the Reko Diq copper-gold project in Pakistan and the Lumwana copper mine’s Super Pit expansion in Zambia. The company is also aiming to bring down all-in-sustaining gold mining costs to around $1,000 per ounce, reflecting a focus on operational efficiency.

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