Barrick Mining Corporation · TSX:ABX

Barrick Mining — HSBC Global Commodities in Asia Conference (November 2010)

30 slides from Barrick Mining's conference presentation, Nov 2, 2010

  1. Slide 1: The Gold Industry Leader

    The Gold Industry Leader HSBC Global Commodities in Asia Conference November 2, 2010

  2. Slide 2: Cautionary Statement on Forward-Looking Information

    CAUTIONARY STATEMENT ON FORWARD-LOOKING FORWARD LOOKING INFORMATION Certain information contained in this presentation, including any information as to our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates

  3. Slide 3: Outline; A Compelling Investment Case

    Outline ƒ Investment case summary ƒ Gold G ld outlook l k ƒ YTD financial and operational highlights ƒ Value creation initiatives ƒ Conclusion 1 A Compelling Investment Case Investment Case for Gold ƒ Strong fundamentals Investment Case for Barrick ƒ Capturing benefits of rising gold and copper pric

  4. Slide 4: Outlook - Bullish on Gold; YTD September 30 Results

    Outlook ‐ Bullish on Gold ƒ Diversifying Role – up 401% over past 10 yrs (S&P – down 14%)(1) ƒ Price supportive macroeconomic environment: – monetary reflation (quantitative easing) – fiscal policies & sovereign debt concerns – trade & current account imbalances ƒ Growth in investment demand ƒ Centr

  5. Slide 5: YTD Record Financial Results

    YTD Record Financial Results Realized Gold Margin(1) Gold Margin(1) Gold Price(1) Total Cash Cost Basis Net Cash Cost Basis US$/oz 1,184 $US/oz $US/oz 838 838 736 736 940 26% 49% 54% 564 564 477 477 YTD 09 H1 09 YTD 10 H1 10 YTD 09 H1 09 YTD 10 H1 10 YTD 09 H1 09 YTD 10 H1 10 (1) See final slide #1

  6. Slide 6: Margin Expansion; Return on Shareholders' Equity

    Margin Expansion ~1200 Average Total Cash Costs(1) vs Gold Prices US$ per ounce Avg. Realized Price(1) 985 ~745 Margin(1) 872 519 429 621 545 276 439 265 443 466 ~455 Total Cash Cost 214 345 280 225 05 06 07 08 09 10E (1) See final slide #1 7 Return on Shareholders’ Equity 17.5 Return on ƒ Capturing

  7. Slide 7: Leverage to Gold; Strong Financial Position

    Leverage to Gold Barrick EPS & CFPS vs Gold ƒ Barrick’s adjusted Returns (US$) 600% earnings and cash flow (1) ( = adjusted) growth has significantly 500% outpaced the rise in 400% gold prices over the past 5 years 300% 200% 100% (1) See final slide #1. All EPS figures are adjusted except 0% Dec 04

  8. Slide 8: Dividend Increase; Growth in 2010 and Beyond

    Dividend Increase Semi-Annual Dividends Quarterly Dividend(1) US$ per share / Record Date US$ per share / Record Date Represents 20¢ 20¢ 20¢ 20¢ 20¢ 20% increase(1) 15¢ 15¢ 12¢ 12¢ 11¢ 11¢ May Nov May Nov May Nov May Nov May Aug Nov 2006 2007 2008 2009 2010 (1) See final slide #6 11 Growth in 2010 a

  9. Slide 9: Barrick's Strategy; Balanced Portfolio

    Barrick’s Strategy Focused on adding value… ƒ Invest in high return development projects ƒ Maximize value of existing mines ƒ Increase gold and copper reserves through exploration and selective acquisitions ƒ Leverage L technical t h i l skills kill and d regional i l infrastructure to commercialize

  10. Slide 10: Proven & Probable Gold Reserves; History of Reserve Growth

    Proven & Probable Gold Reserves (1) ounces millions 139.8 138.5 ƒ Grew reserves 123.1 124.6 for the fourth consecutive year 88.6 ƒ Gold industry’s l largest reserves 2005 2006 2007 2008 2009 (1) See final slide #3 15 History of Reserve Growth THROUGH ACQUISITION AND EXPLORATION proven and probable –

  11. Slide 11: North America Asset Overview; Key Strengths

    North America ASSET OVERVIEW Donlin Creek ƒ Nine mines and two major projects (one in construction, one in feasibility) ƒ 2010e – 3.07-3.10 M oz at total cash costs of $480-$500/oz (1) Goldstrike Hemlo C A N A D A Turquoise Ridge Golden Sunlight Marigold B ld Mountain Bald M t i Cortez UNITED STATES

  12. Slide 12: Cortez Hills - Exceeds Expectations

    Cortez NEVADA 19 Cortez Hills ‐ Exceeds Expectations ƒ Cortez property: – YTD production of 936 Koz at total cash costs of $307/oz(1) – 2010 production anticipated to be at the higher end of original guidance range of 1.08-1.12 Moz at total cash costs of $295- $315/oz((1,2) , ) ƒ Supplementary EIS a

  13. Slide 13: Cortez Value Added; Pueblo Viejo

    Cortez VALUE ADDED 2006 2010 ƒ 6.3 M oz of reserves ((1)) ƒ 14.1 M oz of reserves (1) ƒ 60% interest ƒ 100% interest ƒ Pipeline: declining, declining ƒ Cortez Hills: 1.0 M oz, higher cost mine low cost mine generating significant cash flow FUTURE VALUE CREATION OPPORTUNITIES ƒ Cortez Hills Middle an

  14. Slide 14: Pueblo Viejo Project Update

    Pueblo Viejo Project Update ƒ Initial production expected in Q4 2011(1) ƒ In line with $3.0B $3 0B pre pre-production production capital budget((2)) (100%) ƒ 625-675 K oz to Barrick at total cash costs of $275-$300/oz(2,3) ƒ ~75% of capital committed ƒ Construction nearly 40% complete Ore Oxygen Ore

  15. Slide 15: Turquoise Ridge JV

    Turquoise Ridge JV NEVADA 25 Turquoise Ridge CREATING VALUE High grade underground operation ƒ Current production of 150-200 K oz/yr(1); 2009 reserve of 5 5.4 4 M oz (100% basis)(2) ƒ Significant exploration potential Open pit evaluation ƒ Substantial mineralization surrounding existing deposit ƒ Po

  16. Slide 16: Turquoise Ridge Open Pit; Other Mines

    Turquoise Ridge Open Pit 5.4 M oz UG reserve orebody +20 M oz conceptual open pit orebody 27 Other Mines CREATING VALUE Bald Mountain - North Area Expansion Plan ƒ Expect to increase production from ~100,000 to 150,000- 250,000 oz/year, extending mine life by ~10 years ƒ Unified plan includes expans

  17. Slide 17: Donlin Creek Highlights

    Donlin Creek ALASKA 29 Donlin Creek HIGHLIGHTS ƒ One of the largest undeveloped gold deposits in the world ƒ 2009 M&I resources: 36.9 M oz (100% basis) (1) ƒ Potential to be a +1 M oz/year producer (100% basis) at attractive operating costs ƒ Long life – currently +25 years ƒ Feasibility study compl

  18. Slide 18: Donlin Creek Value Added; South America Asset Overview

    Donlin Creek VALUE ADDED 2006 2010 ƒ 14.8 14 8 M oz of resources (1) ƒ 36.9 36 9 M oz of resources (1) ƒ Early stage property ƒ Feasibility completed – evaluating opportunities to enhance project economics FUTURE VALUE CREATION OPPORTUNITIES ƒ Natural gas pipeline to replace HFO ƒ Substantial resour

  19. Slide 19: South America Key Strengths

    South America KEY STRENGTHS ƒ ~35% of Barrick’s gold reserves and ~30% of Asset Scale expected 2010 production & Quality ƒ Low cash costs: industry’s industry s lowest decile New ƒ Pascua-Lama on track to commence in Q1 2013 at Low Cost total cash costs of $20-$50 $20 $50 per ounce Production Projec

  20. Slide 20: Lagunas Norte Value Added; Pascua-Lama

    Lagunas Norte VALUE ADDED 2002 2010 ƒ One of the most ƒ 2009 year end reserve of significant greenfield 7.5 M oz(1) after four years discoveries of the of operating at +1.0 M oz pastt d decade d ƒ Barrick’s B i k’ lowest l t costt mine i ƒ Consistently operated ahead of expectations FUTURE VALUE CRE

  21. Slide 21: Pascua-Lama Project Update

    Pascua‐Lama Project Update First rock removal from cross-border ore ƒ Initial production transport tunnel in Chile expected in Q1 2013 ƒ Detailed engineering and procurement almost 90% complete ƒ In line with ~$3.0 B pre-production capital Primary crusher platform excavation budget(1) – ~40% of capi

  22. Slide 22: Cerro Casale Project Update

    Cerro Casale Project Update ƒ Detailed engineering about 20% complete ƒ ~$4.2 ~$4 2 B pre-production pre production capital budget (100%)(1) ƒ Barrick’s 75% share of production: – 750-825 K oz gold and 170-190 M lbs copper – Total cash costs of $240-$260/oz(1,2) Hydrologic drilling for water supply

  23. Slide 23: Zaldívar Copper Highlights

    Zaldívar Copper CHILE 41 Zaldívar Copper HIGHLIGHTS ƒ Large copper producer at competitive cash costs: 2010 production of ~315 M lbs at $1.10 $1 10-$1 $1.15/lb 15/lb (1) ƒ Strong cash flow generator ƒ Significant remaining mine life (~15 years) – 2009 reserves: 6.0 B lbs Cu(2) – 2009 M&I resources:

  24. Slide 24: Zaldívar Sulfides; El Indio Belt

    Zaldívar Sulfides CREATING VALUE Primary Sulphide Development ƒ Opportunity: pp y extend mine life byy ~16 years y ƒ Description: 1.0 B tonne potential brownfield resource with nominal 0.31% Cu, 0.08 gpt Au(1) ƒ Next steps: finalize scoping study and begin prefeasibility study in Q4 2010 Current LOM

  25. Slide 25: Australia Pacific Asset Overview; Key Strengths

    Australia Pacific ASSET OVERVIEW PAPUA ƒ Eight operating mines NEW GUINEA Porgera ƒ Large land tenements in Australia and PNG ƒ 2010e – 1.925-1.975 1 925 1 975 M oz at total cash costs AUSTRALIA of $ $610-$625/oz $ / (1) Plutonic Lawlers Darlot Granny Smith Kanowna Kalgoorlie Cowal Mines (1) See fin

  26. Slide 26: Australia Pacific Creating Value

    Australia Pacific CREATING VALUE Porgera ƒ Increased ownership to 95% from 75% in 2007 on favourable terms ƒ Focused on UG mine extensions and ramp up ƒ Significant exploration potential Goldstrike autoclaves K l Kalgoorlie li ƒ One of the largest mines in Australia – 13 M oz p produced to date (100

  27. Slide 27: African Barrick Asset Overview; Key Strengths

    African Barrick ASSET OVERVIEW ƒ Four operating mines and two projects ƒ 2010e – ~0.575 0.575 M oz (ABX share) at total cash costs of $620-$640/oz (US GAAP) (1) Tusker North Mara Tulawaka Bulyanhulu Golden Ridge Buzwagi TANZANIA Mines Projects (1) See final slide #1 49 African Barrick KEY STRENGTHS

  28. Slide 28: African Barrick Adding Value

    African Barrick ADDING VALUE Bulyanhulu ƒ Increased reserves from 3.6 M oz to 10 3 M oz(1) since 10.3 i acquisition i iti ini 1999 ƒ Buly Upper East Zone – near mine underground target ƒ Potential to contribute cont ib te p production od ction of 35-50 K oz/yr (1) ƒ Feasibility underway North Mara ƒ

  29. Slide 29: Reko Diq Highlights; 9 Million Ounce Target

    Reko Diq HIGHLIGHTS ƒ Feasibility completed; ESIA in final stages ƒ Large resource (100%): 31.3 31 3 B lb M&I copper, copper 22.4 B lbs inferred copper; 25.3 M oz M&I gold, 17.1 M oz inferred ggold(1) ƒ ~$3.3 B pre-production capital budget (100%)(2) ƒ First full 5 years (100%): – ~265,000 oz gold a

  30. Slide 30: In Closing; Footnotes

    In Closing ƒ Record Q3 financial results ƒ On track to deliver higher production at lower cash costs in 2010 ƒ Cortez Hills performed ahead of expectations ƒ Targeting growth in gold production to 9 Moz(1) within 5 yyears including g the world-class Pueblo Viejo j and Pascua-Lama projects in constru

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