Barrick Gold will not stray from its conservative approach to capital management despite the gold price hitting a record US$2600/oz, chief executive Mark Bristow told Mining Journal at the 2024 Gold Forum Americas in Colorado Springs in Denver, US.

"We are conservative in the way we manage our capital. We like strong balance sheets. We've always had strong balance sheets, and we have a very clear capital allocation policy that keeps everyone focused on sustainable, profitable businesses," Bristow said. 

"We've got a big capital schedule ahead of us, and we still see opportunities to continue growing and delivering better value to our shareholders and stakeholders. We don't change our minds with changing circumstances. We're very disciplined about that."

From 2025 onwards, Barrick has a number of catalysts that are set to help reverse multiple years of production decline, including production from Goldrush in Nevada and the expansion of Pueblo Viejo in the Dominican Republic, which will produce 800,000ozpa for 20 years.

"By 2028, Barrick will be what we envisaged in 2019, a world-class gold and copper mining and exploration company with a 30% better production profile on a gold equivalent basis. Profitability is absolutely our focus," Bristow said.

Bristow maintains that his strategy of developing Barrick's organic pipeline will generate superior returns compared to buying assets for premiums.

"We have unlocked real value without buying it at a significant premium. It is about whether we can survive the cyclicality of our industry and still deliver value to all our stakeholders, and definitely, Barrick is on track to do that," he explained.

"I absolutely believe that Barrick, within its peer group, is a standout business. It's got the best, strongest balance sheet in the senior goal place. It has delivered more than $5 billion back to its shareholders, and it has essentially no debt, and we've invested more than $9 billion in fixing the business to match it to the quality of the assets. This is a long game, and I'm super excited about being able to create value. It is not about today; it is about sustainable profitability today, tomorrow and in 20 years."

With M&A in the gold sector heating up, Bristow continues to resist paying a premium to buy assets.

"Barrick is an industry leader in its ability to replace the gold in its mines and grow it. We have replaced 44Moz through the drill bit, not buying it at a premium. That is what is missing in our industry today: we are not finding new gold mines. Since the turn of the century, the gold industry has not replaced the gold it has mined; it has relied on a rising gold price to deliver more gold to mine. There is a lot of M&A that's happened through necessity," Bristow said.