Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — BMO Capital Markets Global Metals and Mining Conference 2016
20 slides from Barrick Mining's conference presentation, Feb 29, 2016
Slide 1: Partnership. Performance. Value.
Barrick Gold Corporation Partnership. Performance. Value. BMO Capital Markets, Global Metals and Mining Conference | February 29, 2016 | Hollywood, Florida 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: Vision and Strategy
Vision and Strategy The Best Assets Managed to Deliver the Best Returns 3
Slide 4: Restoring Margin Expansion
Restoring Margin Expansion Higher gold prices led to lower cutoff grades, cash cost escalation and lack of margin expansion for industry during previous cycle 8.0 7.0 6.0 5.0 4.0 3.0 Opportunity: cash cost improvement 2.0 lagged in declining price environment 1.0 0 Indexed to December 31 Sept. 30
Slide 5: Executed on 2015 Priorities
Executed on 2015 Priorities $ Streamlined Strengthened Maximized Focused on the the Balance Free Cash Best Assets Business Sheet Flow and Regions Implemented Total debt Three Sold non-core decentralized, reduced by consecutive assets; focused partnership- $3.1 B or 24%1 quarters of portfolio centric
Slide 6: Focused the Portfolio
Focused the Portfolio Seven Non-core Asset Sales NEVADA Golden in 2015 Turquoise Ridge Sunlight Hemlo Goldstrike $3.2 B in proceeds Cortez Pueblo Viejo Divestments reduced average AISC across the portfolio Lagunas Norte ANDES Reserves and ~70% Zaldívar production of 2016 production Veladero fr
Slide 7: 2016 Priorities
2016 Priorities Free Generate free cash flow at a gold price of $ Cash Flow $1,000 per ounce Balance Reduce total debt by a further $2 billion Sheet Operational Implement Best in Class initiative across Excellence all operations $ Capital Allocate and sequence capital using long Discipline term gold
Slide 8: Three Year Production and AISC Guidance
Three Year Production and AISC Guidance1 Production (Moz) AISC ($/oz) $864 $831 $775-$825 $740-$790 $725-$775 6.25 6.12 5.0-5.5 5.0-5.5 4.6-5.1 2014 2015 2016E 2017E 2018E 1. See final slides #1, #2, and #3. 8
Slide 9: Three Year Capex Guidance
Three Year Capex Guidance1 ($B) $2.18 Projects Expansion $1.60-1.85 $1.51 $1.50-1.75 Sustaining & $1.35-1.65 Development 2014 2015 2016E 2017E 2018E 1. See final slide #2, #3 and #4. Capex guidance includes expenditures on gold and copper operations. 9
Slide 10: 2016 Copper Production and Cost Guidance
2016 Copper Production and Cost Guidance Copper Production1 (M lbs) Copper AISC1,2 & C1 Cash Costs1,2 ($/oz) 539 $2.74 $2.79 511 436 $2.33 $2.05- 370- 2.35 410 2.00 1.92 1.73 1.45- 1.75 2013 2014 2015 2016E 2013 2014 2015 2016E 1. See final slide #2 2. See final slide #1. 10
Slide 11: Goals for Long Term Success
Goals for Long Term Success 11
Slide 12: High Quality Portfolio with Optionality
High Quality Portfolio with Optionality 1.88 Average reserve grade of core Able to maintain a long term ABX mines more than double the profitable production base CORE peer average2 MINES Average 16 year mine life for past 20+ years 1.32 ABX 91.9 Moz of Reserves1 TOTAL 1.06 1.06 79.1 Moz of M
Slide 13: Best in Class – A Constant, Relentless, Concurrent Process
Best in Class – A Constant, Relentless, Concurrent Process Productivity Drive Innovation Step Change In Approach To Productivity Immediate Productivity Improvements Implement Innovation Leverage Best in Class Across Mine Operations to Identify and Drive Achieve Fixed Targets Improvements Innovatio
Slide 14: What Will Best in Class Deliver
What Will Best in Class Deliver Transparent, Timely, Financial and operating data captured Accurate Performance Data Identify and address performance gaps Site-level targets Data-driven Performance Targets Determine performance against the limits of the resources Management Operating Integ
Slide 15: Successful Liability Management
Successful Liability Management Achieved $3.1 B of debt Total Debt ($ B) reduction in 2015 13.1 Total debt reduced by 24%1 2016 debt reduction target of Net debt reduced by 28%1 at least $2 B 3.1 – new $750M debt tender offer Repaid 10.0 0.75 in 2015 Debt Aspiration to reduce total debt te
Slide 16: Staged Approach to Project Development
Staged Approach to Project Development Improved business planning model Strong focus on social license Starter project concept – Phased approach – Fund subsequent stages from cash flow Rigorous stage gate reviews – 15% ROIC hurdle rate Consider partnerships to diversify risk 16
Slide 17: Project Portfolio Optionality
Project Portfolio Optionality Barrick Cortez Projects Deep South Peer Projects1 Cortez Lower Zone Goldrush Grade Increasing Alturas Donlin Pascua Gold -Lama Cerro Casale Endowment Increasing 1. Peers include Newmont and Goldcorp. Source: Company Reports (2014-2015), Pascua-Lama, Casale and Donlin st
Slide 18: Sequencing Our Strategic Opportunities
Sequencing Our Strategic Opportunities1 Turquoise Ridge Cortez Hills Lagunas Norte Goldrush Refractory Ore Mine Expansion Deep South Life Extension Improve Expansion of the Advanced Refractory ore ventilation and Cortez Hill exploration extension below mining efficiency underground mine proj
Slide 19: Our Investment Proposition
Our Investment Proposition The Best Assets Managed to Deliver the Best Returns 19
Slide 20: Footnotes
Footnotes 1. All-in sustaining costs (“AISC”) per ounce/per pound and C1 cash costs per pound are non-GAAP financial performance measures with no standardized definition under IFRS. See pages 70-78 of Barrick’s Fourth Quarter and Year-End 2015 Report. 2. 2016 guidance is based on gold, copper, and o
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