Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Q1 2018 Earnings Presentation
23 slides from Barrick Mining's earnings presentation, Apr 24, 2018
Slide 1: Barrick Gold Corporation 2018 First Quarter Results
Barrick Gold Corporation 2018 First Quarter Results | April 24, 2018 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: Today's Speakers
Today’s Speakers Kelvin Dushnisky Catherine Raw Greg Walker Bill MacNevin Rob Krcmarov President Chief Financial Officer Senior Vice President Barrick Nevada CEO Executive Vice President Operational and Exploration and Growth Technical Excellence 3
Slide 4: 2018 Priorities and First Quarter Highlights
2018 Priorities and First Quarter Highlights $ $ Free Cash Operational Capital Project Talent Flow Excellence Discipline Pipeline Development Operating Cash Flow1 of $507M and Free Cash Flow2 of $181M Gold production and costs in line with expectations Nevada organic growth projects progressin
Slide 5: First Quarter 2018 Financial Highlights
First Quarter 2018 Financial Highlights EPS and Adj. EPS1 OCF and FCF1 Sustaining and Project Capex ($) ($M) ($M) 331 +4% 507 +2% 318 0.58 495 100 56 262 231 -76% 181 +12% 161 0.14 0.14 0.15 +7% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 1. These are non-GAAP financial performance measures with
Slide 6: 2018 Guidance
2018 Guidance1 Production Cost of Sales Cash Costs2 AISC2 Capital Gold (koz) ($/oz) ($/oz) ($/oz) Expenditures 4,500-5,000 810-850 540-575 765-815 ($M) Production Cost of Sales C1 Cash Costs2 AISC2 Copper (mlb) ($/lb) ($/lb) ($/lb) 1,400- 385-450 1.80-2.10 1.55-1.75 2.30-2.60 1,600 Full-year produ
Slide 7: Balance Sheet Strengthened
Balance Sheet Strengthened S&P and Moody’s upgraded Total Debt ($B) credit rating in Q1 13.1 Target to reduce total debt to ~$5B by YE 2018 9.97 Pursue debt reduction with discipline, on terms 7.93 we consider favorable to 6.42 Target shareholders ~5.0 YE YE YE YE YE 2014 2015 2016 2017 2018 7
Slide 8: Disciplined Approach to Capital Allocation
Disciplined Approach to Capital Allocation Cash and Free Cash Flow balanced across four major categories Organic Additional Debt Regular Growth and Returns to Management Dividends Resource Shareholders Pipeline Proceeds from any additional portfolio optimization 8
Slide 9: First Quarter 2018 Operating Results
First Quarter 2018 Operating Results Gold Production (koz) Gold Cost of Sales ($/oz) Gold AISC1 & Cash Costs1 ($/oz) 1,309 833 878 +5.4% 772 804 +4.1% 1,049 -19.9% 545 573 +5.1% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Copper Production (mlbs) Copper Cost of Sales ($/lb) Copper AISC1 & C1 Cas
Slide 10: Turquoise Ridge – Third Shaft
Turquoise Ridge – Third Shaft1 Q1 Activities 2018 Activities Shaft sinking contractor finalized Headframe and shaft equipment Procurement of long lead items purchase commenced Well drilling, contractor mobilization, Well drilling, electrical collar excavation distribution and mine site uti
Slide 11: Barrick Nevada – Goldrush
Barrick Nevada – Goldrush1 Q1 Activities Portal pad completed Exploration declines commenced Red Hill Pod #4 surface drilling completed Continued drilling at Fourmile area 2018 Activities Continue driving declines with mining contractor Red Hill step out and infill surface drilling Sub
Slide 12: Barrick Nevada – Deep South
Barrick Nevada – Deep South1 Q1 Activities 2018 Activities Range Front decline access Complete mass excavation progressing 19.8 ft/day average Commence infrastructure installation East decline complete with Public review of draft Environmental underground breakthrough ahead Impact Statemen
Slide 13: Growth in the Goldrush-Fourmile Corridor
Growth in the Goldrush‐Fourmile Corridor1 Fourmile: 13/18 holes with high grade Au in 2017/2018 Increasing confidence in mineralization continuity ~7 Km length of mineralized system (same length as Goldstrike) Detail next slide Goldrush N FM18-15D 9.1m @ 40.9gpt Probable Reserves M&I Resources
Slide 14: Fourmile Q1 2018 Drill Plan Map
Fourmile Q1 2018 Drill Plan Map1 2018 Plan / Highlights LEGEND High grade intercept > 5 g/t N 24 hole program underway Results pending 2017-18 drilling - no significant intercept 5 holes completed Pre-2017 drill hole – 3 assays received – Highlight intercept: FM18-15D, 9.1 m @ 40.9 g/t 4 holes
Slide 15: Barrick Gold Corporation
alt, Barrick Gold Corporation BARRICK The ™ heartbeat of innovation.
Slide 16: Question Period
Question Period Kelvin Dushnisky Catherine Raw Greg Walker Rob Krcmarov Mark Hill President Chief Financial Officer SVP Operational and EVP Exploration Chief Investment Officer Technical Excellence & Growth Bill MacNevin Henri Gonin Jim Whittaker Rodolfo Najar Sam Ash Barrick Nevada CEO General Mana
Slide 17: Technical Information Endnotes
Technical Information The scientific and technical information contained in this presentation has been reviewed and approved by Steven Haggarty, P. Eng., Senior Director, Metallurgy of Barrick; Rick Sims, Registered Member SME, Vice President, Reserves and Resources of Barrick; and Robert Kcrmarov,
Slide 18: Appendix A – Fourmile Significant Intercepts
APPENDIX A – Fourmile Significant Intercepts1 Core Drill Hole2 Azimuth Dip Interval (m) Width (m) 3 Au (g/t) 666.9-672.7 5.8 10.9 GRC-0427D NA -90 695.3-709.6 14.3 31.8 921.4-927.2 5.8 49.6 GRC-0435D NA -90 702.2-707.4 5.2 14.4 FM16-05D NA -90 705.6-714.0 8.4 30.6 FM16-01D NA -90 no significant inte
Slide 19: Appendix B
Appendix B NOTE 1 “Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial performance measures. Adjusted net earnings excludes the following from net earnings: certain impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and inv
Slide 20: Note 3
NOTE 3 “Cash costs” per ounce and “All-in sustaining costs” per ounce are non-GAAP financial performance measures. “Cash costs” per ounce starts with cost of sales applicable to gold production, but excludes the impact of depreciation, the non-controlling interest of cost of sales, and includes by-p
Slide 21: Reconciliation of Gold Cost of Sales to Cash Costs
Reconciliation of Gold Cost of Sales to Cash costs, All-in sustaining costs and All-in costs, including on a per ounce basis ($ millions, except per ounce information in dollars) For the three months ended March 31 Footnote 2018 2017 Cost of sales applicable to gold production $1,046 $1,238 Deprecia
Slide 22: ($ millions) For the three months ended March 31
7 Rehabilitation—accretion and amortization Includes depreciation on the assets related to rehabilitation provisions of our gold operations and accretion on the rehabilitation provision of our gold operations, split between operating and non-operating sites. 8 Non-controlling interest and copper ope
Slide 23: Reconciliation of Copper Cost of Sales to C1 Cash Costs
Reconciliation of Copper Cost of Sales to C1 cash costs and All-in sustaining costs, including on a per pound basis ($ millions, except per pound information in dollars) For the three months ended March 31 2018 2017 Cost of sales $96 $82 Depreciation/amortization (19) (14) Treatment and refinement c