Barrick Mining Corporation · TSX:ABX

Barrick Mining — Barrick Gold — Q2 2004 Earnings Presentation

39 slides from Barrick Mining's earnings presentation, Jul 27, 2004

  1. Slide 1: Investor Update

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Investor Update – July 27, 2004 FORWARD LOOKING STATEMENT Certain statements included herein, including those regarding production, costs, development schedules and other statements that express management’s expectations or estimates o

  2. Slide 2: Investor Update – Second Quarter Results

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Investor Update – Second Quarter Results ƒ Operating performance in line with plan ƒ Earnings benefit from higher gold price ƒ Development projects on target to meet scheduled completion dates ƒ 2004 hedge reduction target met by Q2, 2

  3. Slide 3: Second Quarter Results: Production and Costs

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Investor Update – Second Quarter Results ƒ Q2 production: 1.28 million ounces ƒ Q2 total cash costs: $209 per ounce ƒ 1st half production: 2.56 million ounces ƒ 1st half total cash costs : $204 per ounce 3

  4. Slide 4: Second Quarter Results: Earnings and Hedging

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Investor Update – Second Quarter Results ƒ Q2 earnings: $34 million ƒ Q2 earnings per share: 6¢ ƒ Tax credit: $30 million ƒ After tax derivative gain $4 million ƒ $26 million opportunity cost from hedge book reduction Investor Update –

  5. Slide 5: Second Quarter Results: North and South American Regions

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Investor Update – Second Quarter Results North American Region ƒ Increased production over Q1 ƒ Costs slightly lower than Q1 due to better performance at Goldstrike ƒ Higher costs at Eskay Creek as silver prices softened in Q2, 2004 ƒ

  6. Slide 6: Second Quarter Results: Australia/Africa and 2004 Outlook

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Investor Update – Second Quarter Results Australia/Africa Region ƒ Overall production higher than Q1 ƒ Slightly higher costs – Plutonic – Kalgoorlie Investor Update – Second Quarter Results ƒ 2004E production: 4.9-5.0 million ounces ƒ

  7. Slide 7: What we said – What we did

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 What we said – What we did ƒ Deliver on our 2004 operating guidance ƒ Build our new mines on time, on budget ƒ Harvest cash flow from existing assets ƒ Reserve replacement and growth ƒ Make decision on Pascua-Lama ƒ Reduce costs by con

  8. Slide 8: Pascua-Lama – Key Features

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Pascua-Lama Project Pascua-Lama – Key Features ƒ Key component of Barrick reserves and future production profile ƒ Large, low cash cost production ƒ Long mine life ƒ Size ranks in world’s top 10 undeveloped deposits ƒ Prospective Front

  9. Slide 9: Pascua-Lama Project Review – Agenda

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Pascua-Lama Project Review – Agenda ƒ Technical Review ƒ Financing Plans ƒ District Exploration Potential 9

  10. Slide 10: Pascua-Lama – Feasibility Update

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Pascua-Lama – Feasibility Update Examined Technical and Economic Parameters ƒ Reviewed every aspect of project (i.e. mining, resource, roads, etc.) ƒ Confirmed general layout (Chile and Argentina) ƒ Confirmed process flowsheet (Wet vs

  11. Slide 11: Pascua-Lama – Project Description

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Pascua-Lama – Project Description ƒ 337 million tons grading 0.05 oz/ton of gold ƒ Gold reserve P&P: 16.87 Moz* (13.96Moz recovered) (June 30, 2004 @ $350 gold/ $5.50 silver) ƒ Silver content in gold reserves: 635 Moz (494 Moz recovere

  12. Slide 12: BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 12

  13. Slide 13: BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 13

  14. Slide 14: BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 14

  15. Slide 15: Pascua-Lama – Construction Capital

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Pascua-Lama – Construction Capital US$ millions 2004 Feasibility Mining 190 Processing 446 Tailings 46 Ancillary facilities & others 129 Total direct 811 EPCM costs 119 Freight, spares & facilities 171 Owner’s cost 127 Total indirect 4

  16. Slide 16: Pascua-Lama – Construction Capital

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Pascua-Lama – Construction Capital US$ millions 2004 Feasibility Total construction capital 1,380 2001 feasibility 1,175 Variance 205 Mining (20) Wet grind vs dry grind + 96 EPCM costs + 33 Freight, spares & facilities + 48 Owner’s cos

  17. Slide 17: Pascua-Lama – Total Cash Costs Variance

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Pascua-Lama – Total Cash Costs Variance Average annual US$/oz increase (decrease) 1st 10 yrs. Total cash cost - 2001 feasibility $ 85 Silver price ($5.50 vs $4.75) (29) Avg. recovered gold grade 22 Processing cost 14 Taxes and royaltie

  18. Slide 18: Pascua-Lama – Financing

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Pascua-Lama – Financing ƒ Target $700-750 million financing (50% of initial construction capital) ƒ Good lender interest / capacity ƒ Project’s cross-border nature adds complexity, however: – Chile considered safe/stable long-term – Ar

  19. Slide 19: Pascua-Lama – Silver Price

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Pascua-Lama – Silver Price ƒ Year-to-date silver average price: $6.48 ƒ Long-term outlook for silver is positive ƒ Supply/demand fundamentals appear sound ƒ Investor/speculator demand key price driver ƒ Further dollar weakness and/or g

  20. Slide 20: BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 20

  21. Slide 21: Pascua-Lama – Summary

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Pascua-Lama – Summary ƒ World-class, long life, large-scale gold-silver project 100% owned by Barrick ƒ Contributes to: – Production profile – Low cash cost profile – Cash flow & earnings ƒ Large, prospective land position ƒ Leverage t

  22. Slide 22: Development Projects

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 DEVELOPMENT PROJECTS Investor Update – July 27, 2004 Building Mines – Current Projects ƒ These mines are expected to drive future production, earnings and cash flow growth (2005-2007) ƒ All four new mines currently in construction ƒ Al

  23. Slide 23: Building Mines – Current Projects

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Building Mines – Current Projects Construction Avg. 10 year Avg. 10 year Project Reserves Capital Production Total Cash Cost (est. start-up date) oz/millions US$ millions ‘000 ozs/year US$/oz Veladero 11.1 $ 460 525-550 $155-165* (Q4,

  24. Slide 24: Building Mines – Veladero, Argentina

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Building Mines – Veladero, Argentina ƒ Mine development 42% complete ƒ Permanent camp completed ƒ Access road construction essentially complete ƒ Site road construction 50% complete ƒ Accelerated equipment orders and arrivals ƒ Pre-str

  25. Slide 25: Building Mines – Lagunas Norte, Peru

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Building Mines – Lagunas Norte, Peru Alto Chicama District ƒ Gold reserves: 7.2 million ounces ƒ Gold resources: 1.7 million ounces ƒ Average annual production & total cash costs: 2006-2008E: 740-760,000 oz at $125-135/oz 2006-2015E: 5

  26. Slide 26: Building Mines – Lagunas Norte, Peru

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Building Mines – Lagunas Norte, Peru Alto Chicama District ƒ Access road construction 90% complete ƒ Mine equipment ordered ƒ Powerline construction well within scheduled Q1, 2005 completion 26

  27. Slide 27: Building Mines – Cowal, Australia

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Building Mines – Cowal, Australia ƒ Gold reserves: 2.5 million ounces ƒ Gold resources: 1.6 million ounces ƒ Average annual production & total cash costs: 2006-2008E: 235-245,000 oz at $215-225/oz* 2006-2015E: 220-230,000 oz at $235-24

  28. Slide 28: Building Mines – Tulawaka, Tanzania

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Building Mines – Tulawaka, Tanzania 70% share ƒ Gold reserves: 368,000 ounces ƒ Average annual production & total cash costs: 2006-2008E: 85-95,000 oz at $165-175/oz 2005-2008E: 70-75,000 oz at $170-180/oz ƒ Construction cost: $34 mill

  29. Slide 29: Exploration Review

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 EXPLORATION REVIEW Investor Update – July 27, 2004 29

  30. Slide 30: BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 30

  31. Slide 31: Goldstrike 2004 Exploration Program

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Goldstrike 2004 Exploration Program ƒ Focus on North and South Pit resource/reserve development ƒ Encouraging results ƒ 264,000 foot drill program underway and will be completed in Q3/4. Program was recently expanded to follow up posit

  32. Slide 32: Goldstrike 2004 Exploration Program

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Goldstrike 2004 Exploration Program Other Targets ƒ Generate and test new drill targets northwest of Meikle ƒ Evaluate target potential southeast of Meikle (east of the Post fault) ƒ Refine Goldstrike geology, geophysics and geochemist

  33. Slide 33: BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 33

  34. Slide 34: BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 34

  35. Slide 35: BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 35

  36. Slide 36: Exploration Review – Summary

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Exploration Review – Summary ƒ Disciplined and consistent approach ƒ Near-term discovery enhanced by advancing best projects faster ƒ Focused on most prospective areas: (Goldstrike, Alto Chicama, Frontera, Chocolate Reef) ƒ Reserve dev

  37. Slide 37: Beyond 2007

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Beyond 2007 ƒ Reserve replacement and growth ƒ Pascua-Lama – positive decision to proceed – world-class, long-life, low cash cost asset – part of new Frontera District with Veladero ƒ Consistent investment in exploration – Goldstrike –

  38. Slide 38: Investor Update – Conclusion

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 Investor Update – Conclusion ƒ Full-year production and total cash cost guidance on track ƒ Organizational focus on execution and delivery of 2004-2007 target growth plan ƒ Strong development project pipeline brings unrivaled growth pr

  39. Slide 39: Note on Reserves

    BARRICK GOLD CORPORATION Investor Update Toronto – July 27, 2004 NOTE ON RESERVES 1. Based on reserves calculated as at December 31, 2003 using an assumed price of $325 per ounce for gold and $4.75 per ounce for silver, except with respect to the Pascua-Lama project where reserves have been recalcul

Barrick Gold — Q2 2004 Earnings Presentation on 6ix