WEBVTT - Barrick Gold CEO Mark Bristow Talks Earnings

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Barrack reported earnings this morning the minor, announcing it bought

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<v Speaker 2>back nearly three million shares in the second quarter maintained

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<v Speaker 2>its quarterly dividend. You can see the shares are up

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<v Speaker 2>more than six percent in a down market. Joining us

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<v Speaker 2>to talk about this more is the CEO, Mark Bristow.

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<v Speaker 2>Mark great to have you on the program. Thanks for

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<v Speaker 2>joining us. I wonder if you know the buy back

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<v Speaker 2>and the earnings beat, all this positive news is enough

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<v Speaker 2>to catch up with your rivals in terms of your

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<v Speaker 2>share price performance because you've lagged the biggest competitors out there.

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<v Speaker 1>I met aus to chat to you again. Yes, it's

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<v Speaker 1>always easier to come from behind.

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<v Speaker 3>You know.

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<v Speaker 1>It's a good shitt of results.

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<v Speaker 3>Nos, margins.

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<v Speaker 1>We were able to really deliver the login from the

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<v Speaker 1>rising gold pros into the bottom line, which is which

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<v Speaker 1>is good.

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<v Speaker 3>Margins on gold.

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<v Speaker 1>Were up a lot, even more so for copper. Prices

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<v Speaker 1>were flat and those prices will start coming down on

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<v Speaker 1>the back end of this year as we address some

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<v Speaker 1>of our investments in sustainable production and at the same

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<v Speaker 1>time bring.

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<v Speaker 3>Up the production on some of our core assets.

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<v Speaker 1>And I think what's really starting to resonate to the

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<v Speaker 1>market is the fact that we've got real growth. That

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<v Speaker 1>we did our deals back in twenty nineteen, twenty twenty

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<v Speaker 1>embedded in that there were no premiums paid, and now

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<v Speaker 1>we've got some world class assets that are starting to

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<v Speaker 1>show themselves for what they are and supportive of our

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<v Speaker 1>announced thirty percent growth by the end of the decade.

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<v Speaker 4>Mark elsewhere, this morning, there was a one point six

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<v Speaker 4>billion dollar deal announced in your industry of gold Fields

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<v Speaker 4>and buying a Canadian company here giving them control of

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<v Speaker 4>a full project in Canada. Wondering about your reaction, your

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<v Speaker 4>competitive reaction. Is this the time now for more M

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<v Speaker 4>and A and can you see yourself pursuing deals to

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<v Speaker 4>be expanding?

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<v Speaker 1>So Sonali and asked to chat to you as well.

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<v Speaker 1>You know, this is a deal at Goldfields bought half

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<v Speaker 1>of the asset just a little while ago. It's buying

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<v Speaker 1>the whole company now, you know it fits maybe with Goldfields,

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<v Speaker 1>definitely doesn't fit with the barrack size and return that

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<v Speaker 1>we look for. It's you know, it's very interesting some

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<v Speaker 1>of these transactions. You've seen the BHP landin transaction on

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<v Speaker 1>copper in Argentina. You know, we're very cautious on doing

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<v Speaker 1>big M and A transactions that are long dated, on

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<v Speaker 1>the delivery in a hot market luck we've got today.

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<v Speaker 1>I think what we're showing is that we've got lots

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<v Speaker 1>to deliver from the transactions we did five years ago,

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<v Speaker 1>and they are real value, creative transactions, not just relying

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<v Speaker 1>on an increasing commodity process.

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<v Speaker 2>Mark, I'm curious as to your take on the value

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<v Speaker 2>of gold as a hedge against inflation. As you mentioned,

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<v Speaker 2>your margins are stronger, and you know, cost inflation for

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<v Speaker 2>you has peaked, really I think for consumers as well,

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<v Speaker 2>and yet gold continues in terms of price. It's march

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<v Speaker 2>ever higher, not really on the back of weakening dollar either.

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<v Speaker 2>What's driving this rally if not inflation or weakness in

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<v Speaker 2>the green back.

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<v Speaker 1>You know, Matt, I've spoken to you about this before.

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<v Speaker 1>The risk of a hard landing is still real and

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<v Speaker 1>we saw that little anxiety come through the markets a

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<v Speaker 1>week ago.

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<v Speaker 3>And what's what.

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<v Speaker 1>The dollar is weaker relative to the goal press. That's

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<v Speaker 1>the ultimate measure, because the dollar is the strongest of

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<v Speaker 1>all the paper currencies. But what it's showing is that

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<v Speaker 1>and the developed economies are all having to deal with

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<v Speaker 1>very large amounts of debt relative to their GDP. So

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<v Speaker 1>the global economy is not in good shape. China is

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<v Speaker 1>not where it was just a few years ago, and

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<v Speaker 1>neither are any of the developed Western world economy.

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<v Speaker 3>So and the goal Press is telling you that. So,

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<v Speaker 3>and what's.

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<v Speaker 1>Interesting just recently is that we saw a big focus

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<v Speaker 1>on buying physical gold, which drove the goal Press up,

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<v Speaker 1>you know, to the twenty two hundred and above.

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<v Speaker 3>But now we're seeing move back into.

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<v Speaker 1>The ETFs and and it's nice to see the reaction

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<v Speaker 1>in the in the equities. And this is what we

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<v Speaker 1>invest in Barrick as we invest in high quality assets,

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<v Speaker 1>and ultimately the market recognizes that and you'll get.

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<v Speaker 3>The left up and the equities.

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<v Speaker 1>And at the same time, our returns to our shareholders

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<v Speaker 1>through dividends, capital returns, etc. Has been on a level

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<v Speaker 1>with our peer group. We've got embedded value in our

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<v Speaker 1>business and we don't have to go and do M

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<v Speaker 1>and A, although we never give up on M and A,

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<v Speaker 1>but we don't have to go and do it at.

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<v Speaker 3>A level where it's not easy to see value creation. Mark.

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<v Speaker 4>I'm equally interested here to talk about copper. If you

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<v Speaker 4>think that a risk of a hard landing is still

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<v Speaker 4>real and copper had slumped nineteen percent from its May peak,

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<v Speaker 4>you do see a rebound now. But do you think

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<v Speaker 4>that there's a bigger floor of copper prices that you

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<v Speaker 4>have to be aware of.

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<v Speaker 3>Here, Yes, CINCINALI absolutely.

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<v Speaker 1>I mean we've all talked about a very volatile next

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<v Speaker 1>two years in copper. You know, copper really gets driven

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<v Speaker 1>by many factors. One of them is the global economy,

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<v Speaker 1>the perception of economic health in the world today. At

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<v Speaker 1>the same time, we saw a sudden tightening on the

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<v Speaker 1>supply side earlier in the year last year as well

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<v Speaker 1>with the Panama situation. But we haven't seen the pool

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<v Speaker 1>on the bar side yet. But ultimately that will come.

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<v Speaker 1>Because the copper industry is ex growth, it will come.

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<v Speaker 1>I've always said, you know, our expansion and Barrick into

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<v Speaker 1>the copper business comes in twenty twenty eight. It's a

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<v Speaker 1>great time to bring new copper production into the world,

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<v Speaker 1>and so we're very comfortable with our investments. We do

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<v Speaker 1>believe ultimately copper is in short supply and it's going

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<v Speaker 1>to get shorter and shorter, and so that's good for

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<v Speaker 1>the copper price, but in the next eighteen months to

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<v Speaker 1>twenty four months is going to be very volatile.

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<v Speaker 2>We get some time with you, thanks so much for

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<v Speaker 2>joining us.

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<v Speaker 3>Mark Bristo there

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<v Speaker 2>Is the CEO of Barrick Gold and the shares are

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<v Speaker 2>on a tear today