Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — IPO Roadshow (November 2013)
20 slides from Barrick Mining's IPO roadshow presentation, Nov 1, 2013
Slide 1: Driven by Returns - Common Share Offering
Driven by Returns Barrick Gold Corporation Common Share Offering 1 October 31, 2013
Slide 2: Prospectus notice
A preliminary short form prospectus containing important information relating to the securities described in this document has not yet been publicly filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the preliminary short form prospectus is
Slide 3: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain information contained or incorporated by reference in this presentation, including any information as to our strategy, projects, plans or future financial or operating performance constitutes “forward-looking statements”. All statements, ot
Slide 4: Transaction Rationale
Transaction Rationale De-levering balance sheet through $3.0B equity offering Reduces net debt by ~21% – Redemption of 100% of notes maturing 2014 for a total of ~$1.1B of proceeds – Retirement of ~17% of notes maturing between 2015 – 2023 for a total of ~$1.5B of proceeds Minimizes near-term schedu
Slide 5: Use of Proceeds
Use of Proceeds Significantly reduces near and medium term debt repayments – ~$1.1B redemption of 2014 notes – ~$1.5B tender offer of notes due between 2015 and 2023 Pre-Offering Scheduled US$B Pre Debt Repayments Tender Offer 7.0 Make-4.0 Whole 5.0 6.0 Make Redemption 1.0 2.0 3.0 5 + 0.0 2014 2015
Slide 6: Offering Summary
Offering Summary Issuer: Barrick Gold Corporation C’Barrick” or the “Company”). Issue: Treasury offering of [•1 common shares in the capital of Barrick (“Common Shares”), before giving effect to the over-allotment option. Issue Price: US$. per Common Share. Amount: US$3.0 billion, before giving effe
Slide 7: Barrick's Framework for Returns
Barrick’s Framework for Returns High Quality Asset Base — 5 mines in the Americas contributed r%155% of production in the first 9 months of 2013 Disciplined Capital Allocation — Pascua-Lama suspension: • 2014 capex guidance reduced by up to $1B • phased construction approach to resume when condition
Slide 8: High Quality Portfolio
High Quality Portfolio High Quality Portfolio 5 mines in the Americas contributed ~55% (~3.0 Moz) of production in the first 9 months of 2013 PUEBLO VIEJO p 9 Months Ending September 30, 2013 Performance Production(1) 1,093 Koz 650 Koz 411 Koz 499 Koz 331 Koz AISC(2) $416/oz $955/oz $633/oz $785/oz
Slide 9: Pueblo Viejo – ramping up
Pueblo Viejo – ramping up Pueblo Viejo – ramping up Full capacity expected in H1 2014 Power plant commissioned in Q3 on schedule Reached an agreement with Government of the Dominican Republic re: SLA amendments 9
Slide 10: Disciplined Capital Allocation Framework
Disciplined Capital Allocation Framework Focuses on maximizing risk-adjusted rates of return free and cash flow Includes sharp focus on cost control Allows us to react quickly in a lower gold price environment Returns will drive production; production will not drive returns 10
Slide 11: Disciplined Capital Allocation Framework
Disciplined Capital Allocation Framework Capital $2B budgeted capex/cost reductions in 2013 discipline Pascua-Lama suspension Cost reduction Reduced 2013 capex guidance Reduced 2013 gold and copper cost guidance Portfolio optimization High quality portfolio; non-core asset sales Maximize free cash f
Slide 12: 2013 Guidance Improvements
2013 Guidance Improvements Gold AISC(1,2) ($/oz) Gold Adjusted Total Capex(1) ($B) Operating Costs(1,2) ($/oz) 1,000- ~11% 900- 975 1,000 1,100 ~21% 5.7- 6.3 ~7% 4.5- 5.0 610- 575- 600 660 12 400 400 2.0 Original Current Original Current Original Current (1) Percentages calculated on midpoint of ran
Slide 13: Improved 2013 Copper Guidance
Improved 2013 Copper Guidance Production(1) (Mlbs) C3 Fully Allocated Costs(1,2) ($US/lb) C1 Cash Costs(1,2) ($US/lb) 2 40 2.60- 2.85 520- 550 480 ~8% ~5% 2.10- 2 30 2.40- 2.60 480- 540 ~11% 1.90- 2.00 2.30 13 400 1.0 1.0 Original Current Original Current Original Current (1) Percentages calculated
Slide 14: Plans to Maximize Cash Flow
Plans to Maximize Cash Flow ASSET THIRD QUARTER 2013 PROGRESS Bald Mountain Implementing mine plan changes Yilgarn South & Barrick Energy Sold Plutonic & Kanowna Sale process underway Pierina Initiated closure Hemlo Deferred open pit expansion; evaluating changes to underground mine plan ABG (73.9%)
Slide 15: Pascua-Lama – Decision to Suspend
Pascua-Lama – Decision to Suspend Decision to temporarily suspend the Pascua-Lama project – except for activities required for environmental protection and regulatory compliance 2014 capex guidance now expected to be reduced up to $1B Continue to explore opportunities for strategic partnerships and
Slide 16: Pascua-Lama Ramp-down
Pascua-Lama Ramp-down Ramp-down to be carried out for an efficient re-start when conditions warrant 2014 estimated costs of $0.25-$0.30B(1) Actual 2014 expenditures will be dependent on a number of factors, including regulatory requirements (1) ~50% expected to be capitalized 16
Slide 17: Third Quarter Results
Third Quarter Results Adjusted net earnings of $0 58B ($0 58/sh)(1) Gold AISC(1) ($US/oz) Copper C1 Costs(1) ($US/lb) 0.58B 0.58/ Net earnings of $0.17B ($0 17/sh) 1,010 -9% 2.01 0.17/-16% Operating cash flow (OCF) of $1.23B 9 6 Adjusted OCF of $1.30B(1) production of 1 85 Moz 916 1.69 Gold 1.85 Cop
Slide 18: Financial Position and Liquidity
Financial Position and Liquidity Generated $3.2B in operating cash flow in first nine months of 2013 $4.0B undrawn credit facility Significantly lower 2014 cash outlay for Pascua-Lama ~$2.0B of reductions in 2013 budgeted costs and capex Termed out $3.0B in debt in Q2 2013 Well underway with plans t
Slide 19: Pro-forma Balance Sheet
Pro-forma Balance Sheet S$ Net debt reduced by ~21% pro-forma the offering In US$B As at September 30, 2013 Pre-Equity Offering Adjustments(1) Post Equity Offering Balance Sheet Cash on Hand $2.3 $0.3 $2.6 Total $15 4 ($2 5) Debt 15.4 2.5) $13.0 Debt Net of Cash $13.1 ($2.8) $10.4 Total Capitalizati
Slide 20: Footnotes
Footnotes 1. Adjusted net earnings, adjusted net earnings per share, adjusted operating cash flow, all-in sustaining costs per ounce (“AISC”), adjusted operating costs per ounce, Cl cash costs per pound and C3 fully allocated cash costs per pound are non-GAAP financial performance measures with no s