Barrick Mining Corporation · TSX:ABX
Barrick Mining — Denver Gold Forum 2015
27 slides from Barrick Mining's conference presentation, Sep 22, 2015
Slide 1: Denver Gold Forum 2015
Denver Gold Group Denver Gold Forum 2015 September 22, 2015 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: Strategic Priorities Scorecard
Strategic Priorities Scorecard Focus on $3 billion Streamlined, free cash flow debt decentralized and capital reduction organization discipline target $2B cost 90% progress Empowering reduction to target our leaders in initiative the field 3
Slide 4: $2 Billion Cost Reduction (2015-2016)
$2 Billion Cost Reduction (2015-2016) $1.6 B total savings identified; $1.1 B booked 2015 - equal split: CapEx, OpEx, Corporate Costs 2016 - focused on sustainable OpEx & other reductions 2015 - $0.5 B 2016 - $1.1 B Capex Capex Opex Unbooked Opex Corporate1 Corporate1 1. Corporate costs includ
Slide 5: Focused on Reducing OpEx
Focused on Reducing OpEx 2015E AISC 2015E Cash Costs $840-$880/oz1 $600-$640/oz1 20% 12% 69% Energy Sustaining Capex Total Cash Costs 16% 16% G&A 4% Maintenance Consumables Expl. & Eval. 4% + other 11% Development 28% 20% Capex Labor Other Productivity Energy/Consumables Working Capital Workforce
Slide 6: $2 Billion Cost Reduction Initiatives
$2 Billion Cost Reduction Initiatives Operating Cost Opportunities Veladero - Pit Optimization Cortez - Increasing U/G Development Capex - Sustaining / Expansion Corporate Costs Deferring and re-scoping sustaining Increasing corporate G&A savings capital projects Reducing project capex to mini
Slide 7: 2015 Outlook
2015 Outlook All-in Sustaining Costs GOLD ($/oz) 6.1-6.4 million ounces1 – 55% weighted to H2 $860- AISC guidance lowered 8951 $864 to $840-$880/oz1 $840- – H2 costs ~10% lower than H1 8801 – Q3 costs ~10%-15% higher than Q4 COPPER 480-520 million pounds1 2015 2015 C1 cash costs of 2014 ORIG
Slide 8: Reducing Capital Intensity
Reducing Capital Intensity Total Capex ($B) 2015 capex guidance lowered to $1.6–$1.9B $2.2 -7% $1.9- Reductions to: 2.2 -20% Sustaining capital $1.6- Expansion capital 1.9 Project capital 2014 2015E 2015E (actual) (original) (revised) 1.0 8
Slide 9: Early Scenario Planning
Early Scenario Planning Provides flexibility at lower gold prices Levers at $1,100/oz Reduced capital + Levers at $1,000/oz Reduced G&A Further cuts to + Levers at $900/oz and exploration exploration, Reducing G&A/headcount Partial / full mine contractor costs and capital suspensions on non-
Slide 10: Portfolio Management
Portfolio Management Disciplined non-core asset sales - Value of other gold and copper assets can be leveraged to cover debt reduction target Core Mines Other Mines/Assets1 Cortez Porgera Zaldívar Goldstrike Bald Mountain Lumwana Golden Sunlight Jabal Sayid Lagunas Norte 4.0 2.3 Round Mountain Puebl
Slide 11: $3B Debt Reduction Target
Restoring a Strong Balance Sheet $3B debt reduction target ~$2.7B or 90% progress to target Repayment Pueblo Viejo Debt Repayment = $250M from cash Zaldívar Cowal sale1 = $550M in cash Porgera (50%) sale1 = $298M in cash Porgera Zaldívar (50%) sale1 = $1.0B in cash Cowal Pueblo Viejo stream1 = $610M
Slide 12: Liquidity Profile
Liquidity Profile Modest and improving short-term maturities; repaid $480 million to date in 2015 Part of Cowal and Porgera proceeds will be used to redeem $264M in 5.75% notes due 20161 Scheduled Debt Repayments to 20182,5 Cash Position 2.0 $2.1B4 1.5 ~$500M3 1.0 Drops to <$250M1 0.5 5.75% note
Slide 13: Streamlined, Decentralized Organization
Streamlined, Decentralized Organization G&A Savings1 Delivering on significant cost US$ millions reductions $90 Revised Simplified structure by removing Savings management layers $70 – dissolved Global Copper Unit Initial Target Empowering General Managers $50 and Executive Directors Revised S
Slide 14: Americas-Focused Portfolio
Americas-Focused Portfolio Strong competitive advantages in core Golden regions – Nevada and Sunlight Hemlo the Andes NEVADA Goldstrike Pueblo Large, high grade Turquoise Ridge Cortez/Goldrush Viejo reserve and resource Bald Mountain Round Mountain Ruby Hill Lagunas Norte base ANDES Zaldívar R
Slide 15: Core Assets and Regions
Core Assets and Regions Pueblo Viejo Lagunas Norte Cortez Veladero Goldstrike 1. See final slide #1 and #2. 15 15
Slide 16: Growth in the Americas
Growth in the Americas Turquoise Ridge (feasibility) Cortez (prefeasibility) Lagunas Norte Goldrush (prefeasibility) (prefeasibility) 16 16
Slide 17: High Grade Reserve & Resource Base
High Grade Reserve & Resource Base Total Mineral Inventory1 (Moz at Dec. 2014) Strong minex focus and track record of 93Moz 94Moz Measured converting resources to Proven and and reserves Probable Indicated Reserves Resources Barrick’s average reserve grade is more than 50% above the senior peer2
Slide 18: New Strategic Partnerships
New Strategic Partnerships Opportunities to collaborate on future projects Porgera Papua New Guinea Zaldívar Chile Multi-faceted partnership Potential synergies with with Zijin enables access to Antofagasta’s Chilean key competitive advantages operations 18 18
Slide 19: In Closing
In Closing High quality portfolio on track with guidance Early and continued actions mitigating impact of current market conditions Solid progress on debt reduction target 19
Slide 20: Appendix
Appendix BARRICK 20
Slide 21: Q2 2015 Financial and Operating Results
Q2 2015 Financial and Operating Results Q2 2015 Results were in line with expectations Gold Prod. (Moz) 1.45 AISC ($/oz)1 895 Adjusted earnings: $60M or Copper Prod. (Mlb) 115 $0.05 per share C1 Cash Costs1 ($/lb) 1.94 Net loss: $9M or $0.01 Capex ($B) 0.41 per share Net EPS ($) (0.01) EBITD
Slide 22: 2015 Financial Outlook
2015 Financial Outlook1 Application of 15% ROIC filter has identified reductions in several categories ($ millions) Current Original Minesite sustaining 1,400-1,600 1,600-1,800 Minesite expansion 100-150 150-200 Projects 100-150 150-200 Capex 1,600-1,900 1,900-2,200 Tax rate 53% 53% Finance costs
Slide 23: 2015 Assumptions and Sensitivities
2015 Assumptions and Sensitivities 2015 Impact Guidance Hypothetical on EBITDA FCF Assumption 1 Change AISC (millions) (millions) Gold revenue, net of royalties $1,100/oz +/‐ $100/oz n/a $330 $218 Copper revenue, net of royalties $2.50/lb +/‐ $0.50/lb n/a $133 $88 Gold all‐in sustaining costs Gold r
Slide 24: Value Realization − Lagunas Norte
Value Realization − Lagunas Norte Extend mine life by ~12 years & add ~2 Moz of M&I resources1 Pre-feasibility initiated on refractory ore project 1. See final slide #8 and #9. 24 24
Slide 25: Value Realization − Pueblo Viejo
Value Realization − Pueblo Viejo Extend mine life by expanding tailings capacity ─ potential to convert a significant portion of resources to reserves1 Preliminary economic assessment completed Convert power plant from HFO to natural gas + convert lime kilns to natural gas PFS completed on the poten
Slide 26: What is TCM Leach?
What is TCM Leach? TCM = Total Carbonaceous Material TCM Leaching is the process of leaching and recovering gold in the presence of TCM Traditional Leaching Process – Cyanide (NaCN) is the leaching chemical, – Coconut shell carbon adsorber TCM Leaching Process – no cyanide required – Calcium T
Slide 27: Footnotes
Footnotes 1. All-in sustaining costs per ounce (“AISC”), cash costs per ounce, C1 cash costs per pound, adjusted net earnings per share (“EPS”), EBITDA, adjusted EBITDA and free cash flow (“FCF”) are non-GAAP financial performance measures with no standardized definition under IFRS. See pages 50-56