Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Q3 2011 Earnings Presentation
17 slides from Barrick Mining's earnings presentation, 2011
Slide 1: Building Value in Everything We Do
Building Value in Everything We Do Third Quarter 2011 Results Conference Call / Webcast 1 CAUTIONARY STATEMENT ON FORWARD‐LOOKING INFORMATION Certain information contained in this presentation, including any information as to our strategy, projects, plans or future financial or operating performance
Slide 2: Third Quarter Highlights
Q3 2011 Results Aaron Regent Jamie Sokalsky Peter Kinver Kelvin Dushnisky Rob Krcmarov President and CEO Executive Vice President Executive Vice President Executive Vice President Senior Vice President and CFO and COO Corporate & Legal Affairs Global Exploration 3 Third Quarter Highlights Met prod
Slide 3: Third Quarter Highlights / Q3 Operating Results
Third Quarter Highlights Significant margin expansion demonstrates gold price leverage – cash h margins increase 55% to $1,290/oz $ / (1) – net cash margins up 51% to $1,415/oz(1) Projects remain on track Two significant gold discoveries at Red Hill and Goldrush in Nevada Quarterly dividend
Slide 4: Pueblo Viejo In Construction
Pueblo Viejo IN CONSTRUCTION First production anticipated in mid-2012 – overall construction +75% complete – all approvals in hand to construct tailings dam 625-675 K oz of expected average annual production to Barrick at total cash costs of $275-$300/oz(1) Mine construction capital of $3.6-$3
Slide 5: Pascua-Lama In Construction
Pascua‐Lama IN CONSTRUCTION Initial production expected in mid-2013 Expected p gold g production p of 800-850 K oz/year y at negative cash costs of $225-$275/oz (1) at $25/oz silver Expected silver production of ~35 M oz/year(2) – every $1 per ounce change in silver price would impact total ca
Slide 6: Project Cash Flow Potential / Low Cash Cost Projects
Project Cash Flow Potential Pueblo Viejo EBITDA(1) Pascua-Lama EBITDA(1) US$B – Barrick’s share US$B ~0.9 ~1 7 ~1.7 125% 143% ~0.4 ~0.7 Feb 2008 May 2009 At $926(2) At $1,600(3) At $930(5) At $1,600(3,4) (1) See final slide #1 (2) See final slide #9 (3) See final slide #8 (4) Based on a silver price
Slide 7: Projects Next Generation
Projects NEXT GENERATION Jabal Sayid, Saudi Arabia – construction +60% complete, +70% of capital committed – production expected to begin in H2 2012 Cerro Casale, Chile (75%) – EIA submitted, ~18 month permitting period anticipated – exploration programs continuing in parallel with permitting
Slide 8: Red Hill and Goldrush
Red Hill and Goldrush(1) Step-out holes north of Red Hill extend mineralization by 2,000 feet Drilling between Red Hill and Goldrush is confirming continuity of the mineralized system Positive results from in-fill drilling at Goldrush Wide-spaced step out drilling recently commenced south of
Slide 9: Turquoise Ridge Open Pit Evaluation / Lumwana 2011 Program
Turquoise Ridge‐ Open Pit Evaluation Confirming OP expansion target in southeast In-fill drilling upgrading and adding resources and inventory New UG zones of high g grade, g , open p up-dip p p 75 ft at 0.224 opt Au 120 ft at 0.66 opt Au 76 ft at 0.451 opt Au 5.6 M oz UG reserve orebody(1) Co
Slide 10: Chimiwungo Drill Areas / Q3 2011 Strong Financial Results
Chimiwungo – Drill Areas $3.50/lb Cu Drilling underway Pit Shell on all target Reserve Development areas Drill program is Sterilizatio n ramping up with 20 rigs planned Resource Definition by year end Mutoma 2km 19 Q3 2011 STRONG FINANCIAL RESULTS Realized Gold Gold Margin(1) Gold Margin(1) Pric
Slide 11: Q3 2011 Strong Financial Results
Q3 2011 STRONG FINANCIAL RESULTS Net Adjusted EBITDA(1) Earnings Net Earnings(1) US$M 2,460 US$M US$M 1,669 47% 1,365 1,385 942 45% 912 52% Q3 10 Q3 11 Q3 10 Q3 11 Q3 10 Q3 11 (1) See final slide #1 21 Q3 2011 STRONG FINANCIAL RESULTS Operating Adjusted Operating Cash Flow Cash Flow(1) US$M 1,889 18
Slide 12: Margin Expansion
Margin Expansion Total Cash Margins(1) US$/oz 1,290 79% Increase in 1,068 Total Cash Margins 927 952 804 834 722 401 403 440 437 445 453 16% 392 increase in Total Cash Costs Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 (1) See final slide #1 23 Margin Expansion Net Cash Margins(1) US$/oz 1,415 72% Incr
Slide 13: Leverage to Gold / ROE versus Peers
Leverage to Gold Barrick EPS & CFPS vs Gold Barrick’s adjusted Returns (US$) 900% net earnings and ( = adjusted) 800% cash flow growth (1) 700% has significantly 600% outpaced the rise in 500% gold prices over the 400% past 7 years 300% 200% 100% (1) See final slide #1. All EPS figures are adjuste
Slide 14: Capital Allocation Strategy / Dividend Growth
Capital Allocation Strategy A Balanced Approach Track record of Invest in high Balance sheet paying a return projects management progressive dividend Improve quality of Maintain strong credit Dividend increased portfolio with long life, ratings, preserve access by 25% low cost gold and to low cost c
Slide 15: 2011 Outlook / Bullish on Gold
2011 Outlook 2011E Gold Production 7.6-7.8 million ounces – Total Cash Costs: $460- $475/oz(1) – Net Cash Costs: $330- $350/oz(1,2) 2011 Copper Production 450-460 million pounds – Total T l Cash C h Costs: C $1.60- $1.70/lb(1) 9 million ounce production target within five years(3) (1) See fina
Slide 16: Investment Case for Barrick
Investment Case for Barrick Strong price supportive fundamentals for gold, silver and copper Major beneficiary of rising metal prices with industry’s largest gold production and stable operating costs Reflected in expanding margins, record earnings, and high returns on equity Growing product
Slide 17: Footnotes
Footnotes 1. Adjusted net earnings, adjusted operating cash flow, return on equity, EBITDA, net cash costs per ounce, net cash margin per ounce, total cash costs per ounce, total cash margin per ounce, total cash costs per pound and average realized price per ounce/pound are non-GAAP financial measu