Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Mines & Money Conference UK 2003
10 slides from Barrick Mining's conference presentation, December 2003
Slide 1: Gold Price Performance
Barrick Gold Corporation Mines & Money – December 2003 GOLD PRICE PERFORMANCE 400 “Sustainable gold rally” 375 350 325 300 275 250 2002 2003
Slide 2: Gold Price Performance and Corporate Objectives
Barrick Gold Corporation Mines & Money – December 2003 GOLD PRICE PERFORMANCE 400 “Sustainable gold rally” 375 350 “… “…gold goldhas hasbeen beenininaabull bullmarket marketsince sinceApril April2001, 2001, rising more than 50 percent in that time.” 325 rising more than 50 percent in that time.” 300
Slide 3: Execution – Operating Mines
Barrick Gold Corporation Mines & Money – December 2003 EXECUTION – Operating Mines § Solid base in OECD countries § 12 operating mines and 4 projects: – 87 Moz of reserves – 7 countries on 4 continents – employing over 7,000 people § 2003E production: 5.4-5.5 Moz cash cost: $190-$195/oz § Focus on c
Slide 4: Execution – Financial Performance
Barrick Gold Corporation Mines & Money – December 2003 EXECUTION – Financial Performance § Nine month earnings: $123M (23¢ per share) § Third quarter earnings: $35M (7¢ per share) – $11M gain on asset sales – $20M after-tax non-hedge derivative loss – Higher effective tax rate § Nine month operating
Slide 5: Execution – Development Projects
Barrick Gold Corporation Mines & Money – December 2003 EXECUTION – Development Projects VELADERO, ARGENTINA POTENTIAL § Reserves: 9.4M oz § Production est: 530,000 oz § Average cash cost est: $155/oz (subject to exchange rate fluctuations) PLAN § 2 open pits - crushing/leaching § Capital costs est:
Slide 6: Execution – Development Projects
Barrick Gold Corporation Mines & Money – December 2003 EXECUTION – Development Projects COWAL, AUSTRALIA § Open pit with carbon-in-leach technology for processing § 2003 focus: complete optimization study and final permitting PASCUA-LAMA, CHILE/ARGENTINA § Open pit with oxide and sulphide processing
Slide 7: Alto Chicama – Exploration Portfolio
Barrick Gold Corporation Mines & Money – December 2003 ALTO CHICAMA – Exploration Portfolio STAGE BUDGET Lagunas Advanced Drilling Sur, $2.0 Tres Cruces Piedra Grande, $2.3 Drill Testing Genusa, La Capilla, Lagunas West Target Lagunas, Lagunas NW, $1.7 Delineation Goitos, Alumbre, Ururupa Grassroots
Slide 8: Resources to Execute Strategy
Barrick Gold Corporation Mines & Money – December 2003 RESOURCES TO EXECUTE STRATEGY FINANCIAL § “A” rated balance sheet – $1 B in cash – no net debt § Capable of self-financing our development program without equity dilution HEDGING – Policy Change § Adopted No-Hedge Policy – Realize that hedging c
Slide 9: Resources to Execute Strategy
Barrick Gold Corporation Mines & Money – December 2003 RESOURCES TO EXECUTE STRATEGY HUMAN § New organizational structure – Consolidating life-of-mine accountability under the COO – Establishing regional economic business units – Building a corporate center that adds value to the global enterprise N
Slide 10: Investment Highlights
Barrick Gold Corporation Mines & Money – December 2003 INVESTMENT HIGHLIGHTS § Exciting time for gold and for Barrick § Steady Current Operations – long-life assets – competitive cost structure – generating substantial free cash flow § Robust Development Pipeline § Active Exploration Program § Stron