Barrick Mining Corporation · TSX:ABX
Barrick Mining — Corporate Update (September 2024)
34 slides from Barrick Mining's corporate update, September 2024
Slide 1: Lumwana Super Pit Expansion Update
Lumwana Super Pit Expansion Update
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: Lumwana Overview
Lumwana Overview Donlin (50%) CANADA Production commenced in Loulo- 2009 producing >1.7Mt Cu Fourmile 100% Hemlo Gounkoto 80% to datei USA 100% PAKISTAN Pueblo Viejo JAPAN Reko Diq 50% Located c.100km west of NGM (61.5%) Turquoise Ridge DOMINICAN 60% EGYPT SAUDI ARABIA Solwezi in Zambia’s Carlin REP
Slide 4: Lumwana…a key component of the Barrick Strategy
Lumwana…a key component of the Barrick Strategy Our Business Lumwana Expansion Barrick is a sector-leading gold and copper Potential Tier One1 copper production profile strategically producer. Our portfolio spans the world’s positioning Barrick on the global stage of copper producers most prolific g
Slide 5: Copper is as strategic as gold is precious…
Copper is as strategic as gold is precious… Copper fundamentals support the Lumwana expansion with global production capacity below the forecast primary demand Mt Projected Global Copper Production and Primary Demand 30 25 2028 – 2057 - Lumwana expansion lifei,2,3 20 15 10 5 - 2020 2021 2022 2023 20
Slide 6: Growing the copper portfolio organically…
Growing the copper portfolio organically… Lumwana is expected to be a global top 25 copper asset upon completion of the expansion positioning Barrick on the global copper stage2 Kt Cu 1,104 2023 Top Producing Copper Projectsi 753 573 447 424 417 406 400 394 362 352 331 325 319 315 302 300 280 252 24
Slide 7: Super Pit Expansion Fundamentals
Super Pit Expansion Fundamentals
Slide 8: Expansion capitalizes on copper fundamentals…
Expansion capitalizes on copper fundamentals… Estimated results indicate a foundation of robust margins and returns i,3 Total Mine IRRi,4 Expansion Capital Paybacki,2 Mine Marginsi,7 ~2 years Net Earnings ~20% ~50% resulting from mine cash flows, after first production through 52mtpa plant EBITDA ~4
Slide 9: Expansion delivers a long-life, high return asset…
Expansion delivers a long-life, high return asset… Copper Produced (ktpa)i,2 Annual Cash Flowi,5 Throughput increase to 52Mt Production Lifts average annual production to 240kt ~85% Increasei, 2,3 Incremental from 2028 ~70% 240 Incremental ~60% Incremental 7.7Mt Cu producedi 140 LOMi 2025 – 2057 (16
Slide 10: Capital intensity…
Capital intensity… Compared to other copper development projects, the Lumwana expansion has exceptionally low capital intensity per tonne of LOM production Capital Intensity (Capex in US$ per tonne of total copper production over life of mine) $2,500 $2,000 $1,500 $1,000 $500 $0 Comparable projects
Slide 11: Capex budget detail well advanced…
Capex budget detail well advanced… High Confidence Capitali,2 Forecast Investment Spend Profilei,2 $bn 0.60 Capital estimate based on the existing knowledge and recent 0.50 improvements, and delivers further operating efficiencies 0.40 Feasibility Study on track to be delivered by end 2024 0.30 0.20
Slide 12: Cost competitiveness…
Cost competitiveness… Lumwana post expansion has an attractive cost profile that maintains profitability throughout the cycle 2023 C1 (US$/lb) excl. by-product creditsi,6 Leveraging our existing knowledge Cash Cost (US$/lb) 1st 2nd 3rd 4th The existing operation leads to a well-informed $7.00 Quarti
Slide 13: Project Update
BARRICK Project Update
Slide 14: Project Execution
Project construction & execution schedule2… 3 year construction period expected to deliver first production by 2028i 2024 2025 2026 2027 2028 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Long Lead Orders Long Lead Equipment Plant Commissioning and Placed Deliveries Expansion Power Con
Slide 15: Geological knowledge reduces risk…
Geological knowledge reduces risk… LOM Super Pit Design Cu % Copper grade model Advanced Orebody Knowledge - Q2-2024 Well understood, with high definition Depletion drilling banking orebody geometry 700m and grade variation Integrated geological models optimizing our mine plans Large resource base,
Slide 16: Modern efficient flowsheet…
Modern efficient flowsheet… Plant Expansion New Tailings Thickener Existing Tailings Thickener Existing Plant New Stockpile Existing Concentrate Existing Shed Stockpile New Concentrate Shed New Reagent Storage The plant expansion design is modern, efficient and fit for Learnings from Feasibility Stu
Slide 17: Proven metallurgical recovery model…
Proven metallurgical recovery model… Leveraging orebody knowledge Fresh Material Recovery (%) vs Plant Feed Cu Grade (%) 100 Targeted geometallurgical testwork program as part of PFS-FS to form baseline of operation 98 design 96 Down dip extensions to our currently processed 94 Recovery (%) ore bodi
Slide 18: Proven metallurgical recovery model…
Proven metallurgical recovery model… Leveraging orebody knowledge Fresh Material Recovery (%) vs Plant Feed Cu Grade (%) 100 Targeted geometallurgical testwork program as part of PFS-FS to form baseline of operation 98 design 96 Down dip extensions to our currently processed 94 Recovery (%) ore bodi
Slide 19: Proven metallurgical recovery model…
Proven metallurgical recovery model… Leveraging orebody knowledge Fresh Material Recovery (%) vs Plant Feed Cu Grade (%) 100 Targeted geometallurgical testwork program as 98 part of PFS-FS to form baseline of operation design 96 94 Down dip extensions to our currently processed Recovery (%) ore bodi
Slide 20: Designing for efficiencies in mining…
Designing for efficiencies in mining… Operational continuity Operational experience in ultra class truck & shovel mining Fully risk mitigated mining operation from operational experience Current Top 10 excavator operators exceeding Feasibility Study Tonnes Per Operating Hour (TPOH) by 7% Realising t
Slide 21: Powering the expansion…
Powering the expansion… Stable and Reliable Power Power Profile Power supply agreement fulfilling the expansion requirement signed with ZESCO Independent power grid stability study indicated that for every MW generated more than a third is lost as unusable reactive poweri STATCOM and Expansion proje
Slide 22: Proven permitting pathway…
Proven permitting pathway… Permitting on track ESIA submitted to ZEMA, with expected approval before end 2024 Mining permits for Super Pit, and satellite deposits already in place Surface and water rights for Super Pit and Malundwe already secured Detailed multi-criteria alternative analysis (MAA) c
Slide 23: Social value
BARRICK Social value NYSE : GOLD TSX : ABX World class mines. World class people.
Slide 24: Continuing our license to operate…
Continuing our license to operate… Social Value Integrated development strategy Sustainable approach Supporting employment in the local communities Boosting contribution to Zambian economy Generational life of mine No net loss on any key biodiversity features 24
Slide 25: Integrated development strategy…
Integrated development strategy… Expanding the local economy through developing a regional hub Local community currently engaged in preparation for resettlement Manyama town Airstrip close to the mine Industrial supplier park Leveraging mine site utility infrastructure to support these services Expa
Slide 26: Sustainable future…
Sustainable future… Generating future REDD+ carbon credits through community and biodiversity management projects Three Chiefdoms and Forestry Department included in benefit sharing agreement with ~100,000ha of land committed and significant upside potential to add to the inventory over time Forest
Slide 27: Lumwana Adds Significantly to Barrick’s Copper Growth…
Lumwana Adds Significantly to Barrick’s Barrick’s Copper Growth… Attributable Copper Production3 +50% The Lumwana Expansion Project increases Barrick’s attributable copper by ~50%2 Reko Diq adds another ~100% growth on an attributable basis10 2024 production* Lumwana expansion Post-expansion (before
Slide 28: Key growth projects to increase production profiles and enhance our reserve base…
Key growth projects to increase production profiles and enhance our reserve base… GOLDRUSH, NGM JV (61.5%) FOURMILE, Nevada (100%) PUEBLO VIEJO JV (60%) Ramping up to annual production >400koz (100%) Prefeasibility study decision by end 2024. Drill results Plant and TSF capacity expansions extend li
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Slide 30: Appendix A – Lumwana Production History
Appendix A – Lumwana Production History Tonnes Milled Head Grade Copper in Feed Copper Produced Copper Produced Recovery Year (Mt) (% Cu) (Kt Cu) (Kt) (Mlb Cu) (%) 2009 13.7 0.94 129 109 241 84.8% 2010 18.6 0.86 161 147 323 91.3% 2011 21.0 0.61 128 117 258 91.2% 2012 18.9 0.48 91 81 179 89.5% 2013 2
Slide 31: Appendix B – Assumptions/Outlook
Appendix B – Assumptions/Outlook Key Outlook Assumptions 2024 2025 2026+ Gold Price ($/oz) 1,900 1,300 1,300 Copper Price ($/lb) 3.50 3.00 3.00 Oil Price (WTI) ($/barrel) 80 70 70 AUD Exchange Rate (AUD:USD) 0.75 0.75 0.75 ARS Exchange Rate (USD:ARS) 800 800 800 CAD Exchange Rate (USD:CAD) 1.30 1.30
Slide 32: Technical Information Endnotes…
Technical Information The scientific and technical information contained in this presentation has been reviewed and approved by Richard Peattie, MP hil, FAusIMM, Mineral Resources Manager: Africa and Middle East; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral Resource Management and Evaluation E
Slide 33: Endnotes…
Endnotes… 6. “Total cash costs” per ounce, “All-in sustaining costs” per ounce and "All-in costs" per ounce are non-GAAP financial measures. “Total cash costs” per ounce starts with cost of sales related to gold production and removes depreciation, the non-controlling interest of cost of sales, and
Slide 34: Endnotes…
Endnotes… 10. Barrick holds a 50% ownership interest in the Reko Diq project following the completion of the transaction allowing for the reconstitution of the project on December 15, 2022. This completed the process that began earlier in 2022 following the conclusion of a framework agreement among