Slide 1: Fourth Quarter 2017 Results / 2018 Outlook
Barrick Gold Corporation Fourth Quarter 2017 Results / 2018 Outlook | February 15, 2018 1
Slide 2: 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, o
Slide 3: Today's Speakers
Today’s Speakers Kelvin Dushnisky Catherine Raw Richard Williams Rick Sims President Chief Financial Officer Chief Operating Officer Vice President Reserves and Resources 3
Slide 4: 2017 Achievements
2017 Achievements $ Maximize ▪ Earnings per share (“EPS”) of $1.23 and Adjusted EPS2 of $0.75 Free Cash Flow ▪ Operating Cash Flow1 of $2.07B and Free Cash Flow2 of $669M ▪ Four organic low risk brownfield projects continued to advance $ Disciplined Investment ▪ Entered into JV agreement with Shando
Slide 5: 2018 Priorities
2018 Priorities $ $ Free Cash Operational Capital Project Talent Flow Excellence Discipline Pipeline Development Free Cash Flow Evolution of Strengthen Maximize Value of Build Partnerships Per Share Focus Operations Balance Sheet Portfolio: Assets & & Develop Talent Build a business Develop a while
Slide 6: 2017 Operating Results
2017 Operating Results Gold Production (koz) Gold Cost of Sales ($/oz) Gold AISC1 & Cash Costs1 ($/oz) 5,517 5,323 -3.5% 798 794 -0.5% 730 750 +2.7% 546 526 -3.7% 2016 2017 2016 2017 2016 2017 Copper Production (mlbs) Copper Cost of Sales ($/lb) Copper AISC1 & C1 Cash Costs1 ($/lb) 415 413 -0.4% 1.7
Slide 7: 2018 Guidance
2018 Guidance 1 Production Cost of Sales Cash Costs2 AISC2 Capital Gold (koz) ($/oz) ($/oz) ($/oz) Expenditures 4,500-5,000 810-850 540-575 765-815 ($M) Production Cost of Sales C1 Cash Costs2 AISC2 Copper (mlb) ($/lb) ($/lb) ($/lb) 1,400- 385-450 1.80-2.10 1.55-1.75 2.30-2.60 1,600 ▪ Full-year gold
Slide 8: Five Year Production and Cost Guidance
Five Year Production and Cost Guidance1 Production Cost of Sales AISC2 Capex3 (Moz) ($/oz) ($/oz) ($B) 5.3 1.40- 4.5- 850-980 750-875 1.60 5.0 765- 4.2-4.6 810- 815 850 750 1.36 1.1-1.5 794 17 18E 19E 20E 21E 22E 17 18E 19E 20E 21E 22E 17 18E 19E 20E 21E 22E 17 18E 19E 20E 21E 22E 1. See Endnotes #1
Slide 9: 2017 Financial Highlights
2017 Financial Highlights EPS and Adj. EPS1 OCF and FCF1 Sustaining and Project Capex ($) ($M) ($M) 1,382 +24% 2,640 273 1,119 2,065 -22% 175 1,109 1.23 +120% 944 1,514 0.70 0.75 +7% 0.56 669 -56% 2016 2017 2016 2017 2016 2017 1. These are non-GAAP financial performance measures with no standardized
Slide 10: Exceeded Debt Reduction Target
Exceeded Debt Reduction Target ▪ Exceeded $1.45B debt Total Debt ($B) reduction target for 2017 13.1 ▪ Annualized interest savings of ~$300M from start of Near 9.97 Term FULL YEAR 2015 Pre 2024 7.93 2017 TARGET EXCEEDED $1.5B ▪ Target to reduce REPAID 6.43 total debt to ~$5B Med. Term Target by YE 2
Slide 11: Balance Sheet Improves in 2017
Balance Sheet Improves in 2017 ▪ Strong near and medium term liquidity – $2.2B cash and equivalents at the end of 20171 – $4B undrawn credit facility ▪ ~75% of debt due post 2032 with an average maturity of 18 years2 – Less than $100M3 due before 20204 $5,050 1,000 Long Term 800 Current Debt3 ($M) P
Slide 12: 2018 Financial Outlook
2018 Financial Outlook1 ($M) 2018 Guidance 2017 Results Exploration at South Arturo Effective Tax Rate 41-43% 44% Finance Costs $500-550M $705M Exploration and Evaluation $185-225M $173M Project Expenses $140-180M $181M G&A ~$340M $248M ▪ At current spot gold prices, effective tax rate expected to b
Slide 13: 2017 US Tax Reform Impact on Barrick
2017 US Tax Reform Impact on Barrick ▪ Reviewed all tax provisions impacted by 2017 US Tax Reform – Result: Net positive adjustment to Barrick ▪ Sample of provisions affecting Barrick: – Reduced corporate tax rate – Corporate AMT repealed – Mandatory repatriation of foreign earnings – Limitations on
Slide 14: 2017 Gold Reserves
2017 Gold Reserves1 (Moz) 85.95 2,007 MT 1.33 g/T 76.76 9.19 1,581 MT Equity 1.51 g/T Replacement Changes 8.03 64.55 62.71 1,295 MT 14.05 1,304 MT 1.55 g/T 1.50 g/T Pascua-Lama 6.19 Processed in 2017 40.0 2016 2016 2016 2017 Year End Equity Post P-L Year End Adjusted Reclassification 1. See Endnote
Slide 15: 2017 Gold M&I Resources
2017 Gold M&I Resources1 (Moz) 14.05 Pascua-Lama 9.13 Replacement 90.85 5.76 Equity 88.58 Changes 84.36 7.56 2,061 MT 1,954 MT Turquoise 1.37 g/T 1,830 MT 1.41 g/T 75.23 1.43 g/T Ridge 8.03 Open Pit To 1,309 MT Reserves 1.79 g/T 40.0 2016 2016 2016 2017 Year End Equity Post P-L & TR Year End Adjuste
Slide 16: 2017 Gold Inferred Resources
2017 Gold Inferred Resources1 (Moz) Replacement 30.71 9.13 30.84 30.02 781 MT 795 MT 0.69 746 MT 1.22 g/T 1.25 g/T 27.47 1.21 g/T Equity changes 2.55 731 MT 1.17 g/T Turquoise Ridge Open Pit 5.76 To M+I 10.0 2016 2016 2016 2017 Year End Equity Post TR Year End Adjusted Adjustments 1. See Endnote #4
Slide 17: 2017 Copper Reserves
2017 Copper Reserves1 (M lbs) Replacement 2,669 8,051 627 MT 0.58% 5,921 449 MT 0.60% 539 Processed in 2017 2016 2017 Year End Year End 1. See Endnote #4 17
Slide 18: 2018 – A Company of Owners
2018 – A Company of Owners ▪ Generate free cash flow through price cycles ▪ Optimize portfolio, advance organic projects and exploration ▪ Embed data, digital and innovation to the core of our business ▪ Reduce total debt to ~$5 billion by end of 2018 ▪ Upscale talent and focus on meaningful partner
Slide 19: Question Period
Question Period Kelvin Dushnisky Richard Williams Catherine Raw Greg Walker Sham Chotai President Chief Operating Officer Chief Financial Officer SVP Operational and Chief Digital Officer Technical Excellence Bill MacNevin Henri Gonin Jim Whittaker Rodolfo Najar Rick Sims Shannon McCrae Barrick Neva
Slide 20: Technical Information Endnotes
Technical Information The scientific and technical information contained in this presentation has been reviewed and approved by Steven Haggarty, P. Eng., Senior Director, Metallurgy of Barrick; Rick Sims, Registered Member SME, Vice President, Resources and Reserves of Barrick; and Patrick Garretson
Slide 21: Appendix A
Appendix A NOTE 1 “Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial performance measures. Adjusted net earnings excludes the following from net earnings: certain impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and inv
Slide 22: Notes 3 and 4: Cost of Sales and Cash Costs
NOTE 3 Cost of sales applicable to gold per ounce is calculated using cost of sales applicable to gold on an attributable basis (removing the non- controlling interest of 40% Pueblo Viejo and 36.1% Acacia from cost of sales), divided by attributable gold ounces. Cost of sales applicable to copper pe
Slide 23: Reconciliation of Gold Cost of Sales to Cash Costs, AISC and All-in Costs
Reconciliation of Gold Cost of Sales to Cash costs, All-in sustaining costs and All-in costs, including on a per ounce basis For the three months ($ millions, except per ounce information in dollars) For the years ended December 31 ended December 31 Footnote 2017 2016 2015 2017 2016 Cost of sales re
Slide 24: Non-controlling Interests, Exploration Costs, Capital Expenditures
5 Non-controlling interests (Pueblo Viejo and Acacia) Non-controlling interests include non-controlling interests related to gold production of $137 million and $454 million, respectively, for the three months and year ended December 31, 2017 (2016: $127 million and $508 million, respectively; 2015:
Slide 25: Endnote 5
ENDNOTE 5 “C1 cash costs” per pound and “All-in sustaining costs” per pound are non-GAAP financial performance measures. “C1 cash costs” per pound is based on cost of sales but excludes the impact of depreciation and royalties and includes treatment and refinement charges. “All-in sustaining costs”