Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Investor Day (September 2011)
21 slides from Barrick Mining's investor day presentation, Sep 7, 2011
Slide 1: Building Value in Everything We Do
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Building Value in Everything We Do Investor Day - September 7, 2011 1 Agenda Market and Company Overview – Aaron Regent Financial Fi i l Summary S & Risk Ri k Management M t – Jamie Sokalsky Exploration Update – Rob Krcmarov Operating
Slide 2: Cautionary Statement on Forward-Looking Information
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 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 and other statements that expre
Slide 3: Industry Profitability vs Share Price
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Industry Profitability vs Share Price 350% +353% Gold equity returns Senior 300% Op. Cash Flow(1) have not reflected i increasedd 250% +224% profitability from 200% Gold expanding margins 150% 100% +80% Senior Share 50% Returns(2) 0% 2004 2
Slide 4: Are Current Prices Sustainable?
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Are Current Prices Sustainable? Global demand for resources will continue to intensify with the growth in emerging markets – current GDP growth rates of 8 8-9% 9% versus mature economies growth rate of 2-3%(1) – by 2050, emerging markets ex
Slide 5: Bullish on Gold
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Bullish on Gold Gold is the world’s default currency and is retaining its purchasing power while other currencies are being devalued: – structural economic challenges – sovereign debt concerns – fiscal and monetary reflation – low real inte
Slide 6: Net Official Sector Buying
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Net Official Sector Buying (tonnes) 663 Net official sector buying for the first ti time since i 1988 479 484 H1 2011 purchases 365 are more than 235 double that of full year 2010 34 2004 2005 2006 2007 2008 2009 2010 H1 2011 73 Sources:
Slide 7: Mine Supply vs Gold Price
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Mine Supply vs Gold Price Mine Supply Gold Price Since 2001, gold is Moz US$/oz up ~350% but mine $1,200 $ , supply has only 110 100 $1,000 increased by 2% Supply has not kept 90 $800 pace with the rising gold price 80 $600 70 $400 60 $20
Slide 8: Positive Copper Outlook
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Positive Copper Outlook Demand being supported by the urbanization of emerging markets such as China and India – China will have more than 220 +1 million plus population cities by 2025 compared to Europe with 35 today – China’s economy expe
Slide 9: Summary and Global Footprint
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Summary Structural change in demand Industryy challenged g to mount a sufficient supply pp y response – running at full capacity – project delays – dearth of new discoveries – next generation of mines in complex locations Prices Pi shou
Slide 10: Barrick is Well Positioned
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Barrick is Well Positioned Scale and global reach – ~$50 billion market cap; 25,000 employees Geographic and operational diversity – 26 operating mines and 9 projects located on 5 continents High quality and growing resource base(1) – 1
Slide 11: Barrick's Strategy Objectives
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Strategy Leverage our competitive strengths to grow and improve the quality of our production base by: – maximizingg the potential p of our existing g operations p and land positions p – developing our project pipeline – securing new deposi
Slide 12: Leverage to Gold
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Leverage to Gold Barrick EPS & CFPS vs Gold Barrick’s adjusted Returns (US$) 800% net earnings and ( = adjusted) 700% cash flow growth (1) has significantly 600% outpaced the rise in 500% gold prices over the 400% past 7 years 300% 200% 100
Slide 13: Barrick's Strategy: History of Gold Reserve Growth
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Barrick’s Strategy Focus on adding value… Meet operational and financial targets to maximize b benefits fit off rising i i metal t l prices i Increase gold and copper reserves through exploration and selective acquisitions Maximize the
Slide 14: 2011 Exploration Program
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 2011 Exploration Program(1) $370-$390M ~80% 38% North America African Barrick 13% $210M 11% South America Australia 38% Pacific 2011 exploration budget increased to $370-$390 M; 2010 Operation 2011 Development Project ~40% to be capitalized
Slide 15: History of Reserve/Resource Growth
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 History of Reserve/Resource Growth 50 Reserve/resource ounces added post acquisition or discovery ounces millions 40 ACQUIRED ADDED GRASSROOTS 30 20 10 0 29 Reserves and Resources(1) Gold 37.2 Silver Contained in Gold Copper Lbs billions Moz
Slide 16: World Class Operations and Projects
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Barrick’s Strategy Focus on adding value… Meet operational and financial targets to maximize b benefits fit off rising i i metal t l prices i Increase gold and copper reserves through exploration and selective acquisitions Maximize the
Slide 17: Low Cash Cost Projects
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Low Cash Cost Projects Global Gold Industry Cash Cost Curve(1) $1,500 $1,000 US$/oz $500 Barrick 2011E Total Cash Costs $450-$480(2) Pueblo Viejo $275-$300(2,3) $0 Cerro Casale $125-$175(2,3) Pascua-Lama -$225 to -$275(2,3) -$500 0% 20% 40% 6
Slide 18: Projects: Next Generation
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Projects NEXT GENERATION Jabal Sayid, Saudi Arabia – in construction – production expected to begin in H2 2012 Cerro Casale, Chile (75%) – ESIA submitted, ~18 month permitting period anticipated – exploration programs continuing in parall
Slide 19: Excellent Growth Potential
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Excellent Growth Potential Gold Production Silver Production Copper Production (Moz) ~9.0 (Moz) (Mlbs) ~50 ~1,000 Pascua -Lama Zaldivar Sulphides Lumwana Expansion Pueblo 7.8 Jabal Sayid Net Viejo 641 323 Lumwana Depletion Lumwana (2) 318 Zal
Slide 20: Corporate Social Responsibility
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Corporate Social Responsibility Strengthening CSR First Canadian mining company to join the Voluntary Principles on Security & Human Rights Implementing new Community Relations Management System CSR Advisory Board in development New i
Slide 21: Investment Case for Barrick
BARRICK GOLD CORPORATION Investor Day – September 7, 2011 Investment Case for Barrick Two world-class projects nearing production and expected to generate combined annual EBITDA of ~$2.8 B and lower overall cash costs by ~20%((1)) Equinox adds two quality assets and an additional source of long