Barrick Mining Corporation · TSX:ABX
Barrick Mining — Corporate Update (October 2019)
34 slides from Barrick Mining's corporate update, Oct 23, 2019
Slide 1: …a decade of value creation
…a decade of value creation Operated by
Slide 2: Cautionary Statement on Forward-Looking Information
Cautionary Statement on Forward-Looking Information… Certain information contained in this presentation, including any information as to Barrick’s strategy, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of histori
Slide 3: Kibali…a decade of delivery
Kibali…a decade of delivery 2015 2016 Q4 2016 Q3 2017 Q2 2018 Q1 2019 Full year UG ramp up + First power from Shaft and UG First power production at throughput ramp up to Ambarau system operating from Randgold – Barrick design specs full sulphide circuit hydrostation hoisting ramp up Azambi merger 2
Slide 4: Kibali … what we found and what we’ve established
Kibali … what we found and what we’ve established
Slide 5: Kibali … what we found and what we’ve established
Kibali … what we found and what we’ve established
Slide 6: Kibali … what we found and what we’ve established
Kibali … what we found and what we’ve established
Slide 7: Durba today…
Durba today... Tq KIBALI </ GOLD MINE —,
Slide 8: Safety, health and environment…YTD (Q3)
Safety, health and environment…YTD (Q3) Safety One LTI free recorded YTD LTIFR/million Corrective measures implemented Training in ISO45001 conducted hours worked Occupational Health monitoring continued with various assessments: vibration exposure, noise at 7 workplace and light levels Internal aud
Slide 9: Safety, health and environment…YTD (Q3)
Safety, health and environment…YTD (Q3) HIV HIV positivity rate % HIV positive rate of 3.02% recorded in Q3 2019 down from 3.15% in 2018 and 17% in 2011 20 Volunteer counselling tests campaigned: 1001 VCTs conducted against 555 in Q2 2019 Preventative actions included mass sensitisation, condom dist
Slide 10: Q3 2019…progress towards delivering on business plan
Q3 2019…progress towards delivering on business plan Gold production on track to meet or beat 2019 guidance of 750 000oz1 Transition to underground owner mining completed 15 months previously and transfer of specialist skills from expatriates to Congolese workforce continues Above nameplate throughp
Slide 11: Kibali underground development and mining…
Kibali underground development and mining… UG ore tonnes1 Q3 2019 Underground mining breaking 400 Ore tonnes hoisted - shaft production records 350 Ore tonnes mined - decline 300 Tonnes ‘000s Achieved record production of 978Ktonnes1 of ore 250 in Q3 2019 200 Sandvik AutoMine® & Multi-Lite systems i
Slide 12: Taking automation and digitalisation to the next level…
Taking automation and digitalisation to the next level… NEWTRAX commissioning ongoing Real-time automated KPI’s data collection system Increase predictive maintenance Innovative fleet tracking and management system Effective mine wide digital safety system with personnel tracking Ventilation in dema
Slide 13: Production, recovery, throughput plus capital expenditure
Production, recovery, throughput plus capital expenditure1… Capex US$ billion Tonnes million Oz 000 % 3 9 1 000 100 8 900 90 800 80 7 Capital 700 70 2 6 Expenditure 60 Q3 600 5 2019 500 50 YTD 4 400 40 1 3 300 30 2 200 20 1 100 10 0 0 0 0 2012 2013 2014 2015 2016 2017 2018 2019 Gold produced oz Gold
Slide 14: Kibali power generation… hydro / diesel power blend
Kibali power generation… hydro / diesel power blend Total power generation MW Unit cost $/kWh 40 0,30 35 0,25 30 0,20 25 20 0,15 15 0,10 10 0,05 5 0 0,00 Hydro Diesel Cost
Slide 15: KZ structure…pipeline of projects reinforces prospectivity & opportunities
KZ structure…pipeline of projects reinforces prospectivity & opportunities KZ-North Upside includes: N - Ikamva NW (HW and FW BIF mineralisation) Ikamva Kalimva - Ikamva Down plunge for UG, supported from recent fence - Oere 2.3Km potential supported by model similar to Kalimva Oere Mengu-Pakaka Tre
Slide 16: Kibali…underground development LOM design with 3000, 5000 and 9000 Lode opportunities
Kibali…underground development LOM design with 3000, 5000 and 9000 Lode opportunities1 KCD Open Pit Sessenge Open Pit PB#3 & PB2 North 2018 Proven reserve:1.7Mt @ 2.71g/t for 148koz 2018 Proven reserve:1.2Mt@ 2.45g/t for 94koz 2018 Probable reserve 0.1Mt @ 2.20g/t for 8koz 2018 Probable reserve 3.2M
Slide 17: Kibali employees in Q3 2019…
Kibali employees in Q3 2019… Expat Expat Contractors Employees 112 (2%) 225 (5%) National Casuals National 193 (4%) Employees 1558 (31%) Nationals : 93% National Expatriates: 7% Contractors 2865 (58%)
Slide 18: Local contractors and supply strategy… more than CSR
Local contractors and supply strategy… more than CSR $41 million spent on local contractors during Q3 2019, $119 million YTD Ongoing civil construction and roadworks performed by Congolese contractors (Traminco, TES and IOB) Partnership with Congolese engineering contractor (TES) for plant maintenan
Slide 19: In country investment…2010 through to Q3 2019
In country investment…2010 through to Q3 2019 $2.8Bn paid by Kibali in the form of taxes, permits, Nzoro Power line Road ARU - Ariwara Road infrastructure, salaries and payments to local suppliers Northern By-pass road US$ million Southern By-pass road Visible contributions directly Direct Community
Slide 20: Committed to our partnership philosophy…
Committed to our partnership philosophy… local and international spend Specialist contracts* Construction General services Total contract Shaft sinking contract* and supply chain spend* Underground mining contract* Master drilling $ million $ million $ million $ million 3000 250 900 4000 800 3500 25
Slide 21: Kibali makes a difference…Q3 2019
Kibali makes a difference…Q3 2019 Infrastructure development and maintenance Durba asphalt project: government approval granted, first 500m to start in Q4 Repair of bridges along the Faradje-Aba road: 9 bridges successfully rehabilitated Local Economic Development Projects (YTD) Various community sc
Slide 22: Some of our achievements…
Some of our achievements… Ebola awareness campaign Faradje bridge rehabilitation Soccer tournament Chalk manufacturing project
Slide 23: Agribusiness…local supply to Kibali
Agribusiness…local supply to Kibali Egg production: 130,176 eggs produced from main community projects 13 small-scale pork projects with 198 heads in the community and 16.7t of pork meat sold (GCS and the community) Cocoa project Seedlings distributed and planted on 330ha in the community Training o
Slide 24: Outstanding legal and fiscal issues… working towards amicable solutions
Outstanding legal and fiscal issues… working towards amicable solutions Engagement initiated as new administration is established: New cabinet now in place, engagement resumed on various matters New dynamic brought in as new cabinet opens up to engagement Fifteen months since the government unilater
Slide 25: Investing in the future…
Investing in the future…
Slide 26: Ngayu…finding new and developing prospective targets on the Imva Zone
Ngayu…finding new and developing prospective targets on the Imva Zone Makasi Team continues to maintain its focus on developing Medere trend previously identified and finding new targets on all its Imva N trend zone prospects Bikira Bikira South Systematic approach to exploration and drill targeting
Slide 27: Mambati airstrip….addressing access and infrastructure challenges
Mambati airstrip….addressing access and infrastructure challenges
Slide 28: Quo Vadis for DRC mining Industry…an opportunity to recover together from the 2018 Code
Quo Vadis for DRC mining Industry…an opportunity to recover together from the 2018 Code World economy sluggish and is forecast to remain sluggish on the back of USA and China trade war and Brexit World and China growth materially down with construction the biggest casualty Commodity prices down with
Slide 29: Appendix A – Kibali Significant Intercepts
Appendix A – Kibali Significant Interceptsi Drill Results from Q2 & Q3 2019 Lode Drill Hole Azimuth Dip Interval (m) Width (m) Au (g/t) Lode 9001 GDD201 135 -55 191 – 193 2.00 1.51 Lode 1008 GDD201 135 -55 214.72 - 216.8 2.08 1.14 i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapp
Slide 30: Appendix B – Kibali Significant Intercepts
Appendix B – Kibali Significant Interceptsi Drill Results from Q2 & Q3 2019 Lode Drill Hole Azimuth Dip Interval (m) Width (m) Au (g/t) Lode 5000 KCDU0842 352.99 -7.89 326.9 - 333.9 7.00 4.36 i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum Lode 5000 KCDU0842 352.99 -
Slide 31: Appendix C – Kibali Significant Intercepts
Appendix C – Kibali Significant Interceptsi Drill Results from Q2 & Q3 2019 Lode Drill Hole Azimuth Dip Interval (m) Width (m) Au (g/t) Lode 9000 KCDU2000 52 -86 163 - 168.2 5.20 3.57 i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; Lode 9000 KCDU2000 52 -86 190.6 - 208.9 18.
Slide 32: Appendix D – Kibali Significant Intercepts
Appendix D – Kibali Significant Interceptsi Drill Results from Q2 & Q3 2019 Lode Drill Hole Azimuth Dip Interval (m) Width (m) Au (g/t) Lode 9000 KCDU2088 319 -68 258.5 - 264 5.50 1.45 i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; Lode 11000 KCDU2093 310 -23 265 - 319.55 5
Slide 33: Appendix E – Kibali Significant Intercepts
Appendix E – Kibali Significant Interceptsi Drill Results from Q2 & Q3 2019 Lode Drill Hole Azimuth Dip Interval (m) Width (m) Au (g/t) i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; Lode 11000 KCDU2162 341 -34 489 - 560 71.00 10.57 minimum intercept width is 2 m; internal
Slide 34: Endnotes
Endnotes… 1. At 100%. 2. Estimated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. Estimates are as of December 31, 2018, unless otherwise noted. Complete mineral reserve and mineral resource data for all mines and projects referenced in this