Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Shareholder Meeting (April 2015)
53 slides from Barrick Mining's shareholder meeting presentation, Apr 28, 2015
Slide 1: Barrick Annual Meeting 2015
Ww BARRICK ANNUAL MEE ING 2015.
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: Strategic, cultural, leadership and operating model change
Strategic Cultural Leadership Operating Model change change change change
Slide 4: Partnership culture, strong balance sheet, gold focus, free cash flow per share
Partnership Strong Gold Free Cash Culture Balance Focus Flow per Sheet Share
Slide 5: Partnership culture, strong balance sheet, gold focus, free cash flow per share
Partnership Strong Gold Free Cash Culture Balance Focus Flow per Sheet Share
Slide 6: ~ ny 5S Oe D> aA
~ ny 5S Oe D> 1 aA 54
Slide 7: Guidance
1 ($/oz) $980 GUIDANCE $920 2014 400 1. See final slide #1 1. See final slide #1
Slide 8: 2014 all-in sustaining costs
1 ($/oz) $864 2014 400 1. See final slide #1
Slide 9: AISC 2012-2014
1 ($/oz) $1,014 $915 $864 2012 2013 2014 400 1. See final slide #1
Slide 10: AISC versus peer average
($/oz) $1,266 Avg. Spot Price ~$960 1 $864 Peer ABX Avg. 2014 2014 2014 400 1. See final slide #2
Slide 11: Copper C1 cash costs
1 ($/lb) $2.05 $1.92 $1.92 2012 2013 2014 1.0 1. See final slide #1
Slide 12: 2014 earnings and cash flow
$793 million adjusted net earnings1 $2.9 billion net loss reflects $3.4 billion of impairments $2.3 billion operating cash flow 1. See final slide #1
Slide 13: Safety: total reportable injury frequency rate
4.30 3.30 Member 2014/15 2.60 2.79 Mining Industry Leader World Index 1.64 1.50 1.30 1.20 0.93 0.92 0.76 0.64 0.58 02 03 04 05 06 07 08 09 10 11 12 13 14 Total reportable injury frequency rate
Slide 14: Return to partnership culture and decentralized model
Returned to original partnership culture and decentralized operating model Eliminated management layers between Toronto and mines Pushing down authority and accountability to operating level Elevated talent management as part of partnership culture
Slide 15: Reserves 104 Moz
104 Moz Reserves Ounces mined and processed Ounces divested 93 Moz1 Reserves 2013 2014 $1,100/oz $1,100/oz 1. See final slide #6
Slide 16: Reserve grade versus peers
2.01 BARRICK 5 CORE Reserve grams per tonne MINES 1.37 BARRICK TOTAL 1.04 0.95 0.9 g/t PEER AVERAGE 0.72 0.66 NEWMONT GOLDCORP KINROSS NEWCREST
Slide 17: 2015 Priorities
2015 PRIORITIES
Slide 18: Maximize free cash flow, asset sales, partnerships
Maximize free cash flow Disciplined non-core asset sales Joint ventures and strategic partnerships
Slide 19: Cash position and scheduled debt repayments
Scheduled Debt Repayments ($ B) Cash Position 2.0 $2.3B1 1.5 1.0 <$0.9B $4.0B 0.5 Undrawn Credit Facility 0 2015 2016 2017 1. As of March 31, 2015. See final slide #4
Slide 20: Mine operators empowered to maximize free cash flow
Mine operators empowered to maximize free cash flow Headcount and G&A reductions
Slide 21: Annual savings in G&A and overhead
Annual Savings G&A and Overhead1 ($M) 2015 2016 Mine operators empowered to $30 maximize free cash flow Headcount and G&A reductions reduces by Sustaining capital reductions $70 1. See final slide #5
Slide 22: New projects must meet 15% ROIC
New projects must meet 15% ROIC Existing mines compete for capital Continuous scrutiny on execution
Slide 23: Re-assessing 2015-2016 capex plans
Re-assessing 2015-2016 Capex plans Minimum hurdle rates applied to all expenditures
Slide 24: Re-assessing 2015-2016 capex plans
Re-assessing 2015-2016 Capex plans Minimum hurdle rates applied to all expenditures Further reductions expected following detailed review
Slide 25: 2015 gold guidance
2015 GUIDANCE 6.2-6.6 MILLION OUNCES’ $860-$895 AISC / OZ
Slide 26: Nevada operations map
Turquoise Ridge Goldstrike AREA Cortez ENLARGED RIGHT Bald Mountain Round Mountain JV N E V A D A
Slide 27: 2015 copper guidance
oeemermend dus ; gee Ae ee | 2015 GUIDANCE = MILLION OUNDS- = 7 4 - ee € — 1 COSTS / LB on
Slide 28: Production and costs in line with plan
Production and costs in line with plan Reiterated 2015 operating guidance Reduced 2015 capital expenditure guidance Debt reduction process well underway Significant new gold discovery in the Andean region
Slide 29: Optimization underway with focused management team
Optimization underway with focused management team Project restart requires minimum 15% ROIC
Slide 30: Chile Environmental Court ruling on glacier protection
Positive ruling from Chile Environmental Court on glacier protection Memorandum of Understanding with Diaguita
Slide 31: Chile ruling, Diaguita MOU, flood relief
Positive ruling from Chile Environmental Court on glacier protection Memorandum of Understanding with Diaguita Assisted with flood relief and evacuation efforts in Chile
Slide 32: Strong relationships central to our culture
Nevada Governor Brian Sandoval Strong relationships are central component to our culture Rooted in our DNA to create shared wealth Relationships built on mutual trust and transparency
Slide 33: Community programs: Zambia loans, DR companies, Nevada suppliers
Small business loans in Zambia 200 new companies in DR Nevada equipment suppliers
Slide 34: Scholarships, World Vision partnership, development agreement
Western Shoshone Scholarships World Vision partnership in Peru Development Agreement
Slide 35: Provider of metals for 2015 Pan Am medals
Exclusive provider of all of the gold, silver and copper to produce the Toronto 2015 Pan Am / Parapan Am medals
Slide 36: Cortez, Pueblo Viejo, Lagunas Norte, Goldstrike, Veladero
CORTEZ PUEBLO VIEJO LAGUNAS NORTE GOLDSTRIKE VELADERO
Slide 37: Cortez, Pueblo Viejo, Lagunas Norte, Goldstrike, Veladero
CORTEZ PUEBLO VIEJO LAGUNAS NORTE GOLDSTRIKE VELADERO
Slide 38: 60% of 2015 production at $725-$775/oz
CORTEZ PUEBLO VIEJO 60% of 2015 Production LAGUNAS NORTE at $725-$775/oz GOLDSTRIKE VELADERO
Slide 39: Operating opportunities by mine
CORTEZ PUEBLO VIEJO Underground Convert 7-8 M oz expansion resources to reserves LAGUNAS NORTE Potential to extend mine life GOLDSTRIKE TCM process accelerates cash flow VELADERO Reducing costs
Slide 40: Cyanide-free technologies at Goldstrike and Jabal Sayid
GOLDSTRIKE JABAL SAYID New thiosulfate (TCM) New flotation technology is process is cyanide-free cyanide-free
Slide 41: Nevada / Andes
NEVADA ANDES 1. See final slide #7
Slide 42: Turquoise Ridge, Cortez Hills, Goldrush, Spring Valley
TURQUOISE RIDGE CORTEZ HILLS GOLDRUSH SPRING VALLEY
Slide 43: Turquoise Ridge pre-feasibility on second shaft
TURQUOISE RIDGE Completed pre-feasibility on second shaft option1 1. See final slide #8
Slide 44: Goldrush resources
GOLDRUSH Resources (Moz): 11 M&I + 5 Inferred1 1. See final slide #6
Slide 45: Cortez Hills oxide zone expansion
CORTEZ HILLS Oxide zone expansion
Slide 46: Spring Valley
0 feet 1,000 2,000 Scoping Pit 2014 SPRING VALLEY Resource Footprint Potential to be a new stand-alone mine1 AREA Turquoise Ridge Mineralized ENLARGED Goldstrike Elko Material Carlin NEVADA Spring Valley Cortez Goldrush Bald Mountain Reno 1. See final slide #9.
Slide 47: New Discovery at Alturas
Slide 48: New Discovery at Alturas
Chile Argentina New Discovery Pascua‐Lama Veladero at Alturas Barrick Claims Located on the prolific El Indio Belt El Indio Tambo Primarily oxide, similar Barrick Claims to Veladero but could be significantly higher grade Alturas 20 Km
Slide 49: Alturas cross section
Alturas NORTH Cross section1 SOUTH San Juan, ARGENTINA Coquimbo, CHILE 170m @ 2.76 gpt Au Grade x Thickness 97m @ 4.40 gpt Au (gpt‐m Au) 103.5m @ 1.64 gpt Au 100 – 524 25 – 100 0.3 – 25 1. See final slide #10 and #11.
Slide 50: Alturas cross section
Argentina 5000 RL Alturas Cross Section 1 Chile > 0.25 gpt Au Andesitic Cap > 1.0 gpt Au 4750 RL Breccia 4500 RL Oxidation 250m limit Dacitic host rocks 1. See final slide #10.
Slide 51: High quality portfolio, strong balance sheet, partnership culture
High Quality Portfolio and Attractive Project Pipeline Restoring a Strong Balance Sheet Returning to Original Partnership Culture
Slide 52: rau
rau bis
Slide 53: Footnotes
Footnotes 1. All‐in sustaining costs per ounce (“AISC”), C1 cash costs per pound and adjusted net earnings are non‐GAAP financial performance measures with no standardized definition under IFRS. See pages 49‐54 of Barrick’s First Quarter Report 2015. 2. Senior peers include Newmont, Goldcorp, Kinros