Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Merrill Lynch Global Metals, Mining & Steel Conference 2003
13 slides from Barrick Mining's conference presentation, Sep 11, 2003
Slide 1: Merrill Lynch Annual Canadian Mining Conference – Gold Price Performance
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 Merrill Lynch Annual Canadian Mining Conference Toronto – September 11, 2003 Gold Price Performance “Good time to be in gold” 400 375 350 325 300 275 250 2/28 4/30 8/31 10/31 2/28 4/30 8/31 10/
Slide 2: Corporate Objectives
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 Corporate Objectives § Vision – To be the global industry leader § Strategy – Operate a geographically diversified portfolio of high quality, long life mines – Growth through exploration, devel
Slide 3: Who We Are – Operationally and Financially
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 Who We Are – Operationally § One of the largest gold producers with a long life, competitive cost profile § Solid Base in OECD countries § First-half 2003 production of 2.7Moz at a cash cost of
Slide 4: Who We Are – Top Five Gold Producers and Geographic Diversification
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 Who We Are – Operationally § Top five gold producers (>2moz) 2002 RESERVES 2003E PRODUCTION 2003E TOTAL millions of ounces millions of ounces CASH COSTS US dollars per ounce 86.9 83.2 7.2-7.4*
Slide 5: Mining at Reserve Grade and Reserve Growth
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 Mining at Reserve Grade BARRICK’S PROCESSED GRADE VS RESERVE GRADE ounces per ton 51% 107% 57% 22% 57% 7% 9% 1997 1998 1999 2000 2001 2002 2003 § Currently 10 of 12 operations are mining at res
Slide 6: Exploration Strategy
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 Who We Are – Operationally GLOBAL GOLD EXPLORATION SPENDING 1997 2002 $3.3 B $0.8 B 3% BARRICK 13% § Focus on exploration – 3 approaches: – around existing mines – development projects/district
Slide 7: Improving Future Performance – Veladero
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 Improving Future Performance VELADERO, ARGENTINA § Exploitation Agreement signed with IPEEM § Technical assessment and public hearings complete § Awaiting final clearance § Proven and probable
Slide 8: Improving Future Performance – Cowal and Pascua-Lama
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 Improving Future Performance COWAL, AUSTRALIA § Plan calls for an open pit operation with carbon-in-leach technology for processing § 2003 Focus: complete optimization study and final permittin
Slide 9: Optimized Capital Structure and Forward Sales Program
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 Optimized Capital Structure § Announced share buyback of up to 35M shares - 7% of public float - allocated up to $500M § As of August 30th repurchased 8.8M shares - average price: $17.56 - tota
Slide 10: Forward Sales Program
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 Forward Sales Program § First-half 2003 –production was sold at spot price when it was above contract price - all production was delivered into the program as prices receded – ABX realized US$3
Slide 11: NAV Valuation
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 NAV Valuation § On a P/NAV basis, Barrick is trading at a discount PRICE TO NAV ANALYSIS Firm – gold price assumed Barrick Newmont Placer Merrill Lynch - $375 2.07 3.03 1.86 BMO Nesbitt Burns -
Slide 12: Outlook 2003 - 2004
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 Outlook 2003 - 2004 § 2003 production estimate: 5.4 – 5.5Moz @ cash cost of $190 – 195/oz § 2004 preliminary forecast: – production down about 10% – cash costs up about 10% (due to lower grades
Slide 13: Forward Looking Statement
BARRICK GOLD CORPORATION Merrill Lynch – Global Metals, Mining & Steel Conference Toronto – September 2003 FORWARD LOOKING STATEMENT Certain statements included herein, including those regarding production and costs and other statements that express management’s expectations or estimates of our futu
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