Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Shareholder Meeting (May 2012)
31 slides from Barrick Mining's shareholder meeting presentation, May 2, 2012
Slide 1: Barrick Gold Corporation Annual General Meeting 2012
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Barrick Gold Corporation Annual General Meeting 2012 CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain information contained in this presentation, including any information as to our strategy, projects, plans or future finan
Slide 2: Agenda
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Agenda Gold and copper markets Company performance – Financial and operating results – Exploration – Project j p pipeline p p progress g – Corporate social responsibility The investment case for Barrick Gold and Copper Prices Go
Slide 3: Are Current Prices Sustainable?
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Are Current Prices Sustainable? Global demand for resources will continue to intensify with the growth in emerging markets – current GDP growth rates of 7 7-8% 8% versus mature economies growth rate of 2-3%(1) – 3 billion new people
Slide 4: Net Official Sector Buying
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 455 Net Official Sector Buying Purchases in 2011 were almost six times 2010 full year purchases 77 04 05 06 07 08 09 10 11 -34 -235 -365 -479 -484 -663 Sources: Thomson Reuters GFMS, WGC China (tonnes) India (tonnes) 1,129 Emerging
Slide 5: Mine Supply vs Gold Price
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Mine Supply vs Gold Price Mine Supply Gold Price Since 2001, gold is Moz US$/oz 100 $1 500 $1,500 up 480% but mine supply has only 90 $1,200 increased by 6% Supply has not kept 80 $900 pace with the rising gold price 70 $600 60 $3
Slide 6: Global Copper Demand Growth Global Copper Supply Constrained
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Global Copper Demand Growth Mt 35 2010-2025 3.5% growth p.a. 30 25 2000-2009 1.5% growth p.a. 20 1990-1999 3.0% 1980-1989 growth p.a. 15 1970-1979 1.8% 3.4% growth p.a. 1960-1969 growth p.a. g p 4.7% 10 growth p.a. 5 0 60 65 70 75 80
Slide 7: Summary
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Summary Structural change in demand Industry d challenged h ll d to mount a sufficient ffi i supply l response – running at full capacity – project delays – dearth d h off new discoveries di i – next generation of mines in complex
Slide 8: Barrick's Strategy
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Barrick’s Strategy Focus on Adding Value… Meet operational and financial targets to maximize benefits of rising i i metall prices i Increase gold and copper reserves through exploration and selective acquisitions Maximize the va
Slide 9: Margin Expansion
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Margin Expansion Total Cash Margins(1) 1,578 Net Cash Margins(1) 1,578 US$/oz US$/oz 1,118 1,239 Average Realized Price((1)) Average Realized Price((1)) 1,228 1,228 819 935 985 985 872 521 872 625 429 535 621 621 276 393 443 464 460 4
Slide 10: Record Financial Performance
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Record Financial Performance Adjusted Net Earnings(1) Adjusted Operating 5,680 US$M 4,666 Cash Flow(1) 5,241 US$M $ 3,517 2,899 1,810 2,254 1,661 1,768 1,036 07 08 09 10 11 07 08 09 10 11 (1) See final slide #1 and #12 900% Barrick EP
Slide 11: ROE and ROIC versus Peers
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 ROE and ROIC versus Peers 2011 Return on 22% 2011 Return on 17% Shareholders’ Invested Capital(2) Barrick Barrick Equity(1) 13% 14% Peers Peers (1) See final slide #1 and #15 (2) See final slide #9 First Quarter Operating Results Gold
Slide 12: First Quarter Financial Results
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 First Quarter Financial Results Net Earnings Adjusted Operating US$M Net Earnings(1) Cash Flow US$M US$M 1,086 1,439 1,029 1,001 +3% 1,004 +8% 1,272 Q1 11 Q1 12 Q1 11 Q1 12 Q1 11 Q1 12 500 500 500 (1) See final slide #1 80 Annualized
Slide 13: Barrick's Strategy
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Barrick’s Strategy Focus on Adding Value… Meet operational and financial targets to maximize benefits of rising metal t l prices i Increase gold and copper reserves through exploration and selective acquisitions Maximize the val
Slide 14: Reserves and Resources
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Reserves and Resources(1) Gold Moz Silver (Contained in gold Copper Blbs reserves and resources)(2) 40.2 19.9 37.2 Moz 61.6 64.0 Inferred Inferred 31 6 31.6 53.1 250 0 250.0 232 9 232.9 76.3 80.4 194.9 61.8 M&I 1058.4 1066.3 1067.5 9.
Slide 15: Turquoise Ridge Goldrush Discovery
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Turquoise Ridge Confirming open pit expansion target in southeast In-fill drilling upgrading and adding resources and inventory New high high-grade grade UG zones, zones open up-dip up dip S N 7.1 M oz UG reserve orebody(1) Conc
Slide 16: Goldrush Lumwana Chimiwungo
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 25 ft @ 0.16 opt + N N Goldrush 108 ft @ 0.14 opt 0 2,000 Feet 0 1,000 Drilling is confirming Meters 145 ft @ 0.21 opt mineralization beyond the extent of the 2011 2011 EOY Resource Footprint 100ft of silica- Resource Footprint sulf
Slide 17: Outstanding Asset Portfolio
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Barrick’s Strategy Focus on Adding Value… Meet operational and financial targets to maximize benefits of rising metal t l prices i Increase gold and copper reserves through exploration and selective acquisitions Maximize the val
Slide 18: Pueblo Viejo ~ 93% Complete
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Pueblo Viejo ~ 93% Complete Large: 15.2 Moz reserve(1) 0.625-0.675 Moz annual gold production(2) Low L Cost: C Total T l Cash C h Costs C $300 $350/ (2) off $300-$350/oz Long Life: 25+ years (1) See final slide #3 (2) First full
Slide 19: Pascua-Lama - Nearing Production
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Pascua-Lama - Nearing Production Large: 17.9 Moz reserve(1) 0.800-0.850 Moz annual gold production(2) 35 Moz annual silver production(2) ~35 Low Cost: Negative Total Cash Costs of $225 to $275/oz(2) at $25/oz silver Long Life: 2
Slide 20: World Class Mines
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 World Class Mines Global Gold Industry Total Cash Cost Curve(1) $1,000 $500 US$/oz Pueblo Viejo $300 to $350(2) $0 Pascua-Lama -$225 to -$275(2) -$500 0% 25% 50% 75% 100% Cumulative Production (1) Source: GFMS (Q4 2011 data) (2) See f
Slide 21: Project Cash Flow Potential
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Project Cash Flow Potential Projects in construction US$B P bl Viejo Pueblo Vi j (Barrick’s share) ~0.80 0 80 At $1,600/oz gold(1) Jabal Sayid ~0.24 At $3.50/lb copper(1) Pascua Lama Pascua-Lama ~1.65 1 65 At $1,600/oz gold(1) Avg. An
Slide 22: Projects - Next Generation
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Projects - Next Generation FEASIBILITY/ PERMITTING Barrick’s deep project Cerro Casale (Au/Cu) Chile pipeline provides future Donlin Gold (Au) Alaska investment options Kabanga (Ni) Tanzania PRE-FEASIBILITY Lumwana Expansion (Cu) Za
Slide 23: Strengthening Corporate Social Responsibility
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Strengthening Corporate Social Responsibility Strengthening Corporate Social Responsibility Human Rights Compliance CSR Advisory Board New Community Relations Management System 23
Slide 24: A Catalyst for Economic & Social Development
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 A Catalyst for Economic & Social Development $13B Total Value Added Economic Value-added (wages, royalties & taxes, goods and services) A Catalyst for Economic & Social Development DOMINICAN REPUBLIC PERU ARGENTINA CHILE $5.4B to Lati
Slide 25: Investing in Communities
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Investing in Communities $47M in 2011 $ CHILE Atacama Commitment Investing in Communities PERU Alt Chicama Alto Chi Commitment C it t 25
Slide 26: Improving Education Globally
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Improving Education Globally 18,000 scholarships in 9 countries Protecting Human Rights PORGERA Papua New Guinea 26
Slide 27: Protecting the Environment
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Protecting the Environment Water Conservation Standard Community Water Monitoring Protecting the Environment Investing in Renewable Energy Punta Colorada Wind Farm Protecting Biodiversity 27
Slide 28: Leadership Recognition
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Leadership Recognition Barrick’s Strategy Focus on Adding Value… Meet operational and financial targets to maximize benefits of rising metal t l prices i Increase gold and copper reserves through exploration and selective acquisit
Slide 29: Investment Case for Barrick
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Investment Case for Barrick Excellent price supportive fundamentals for gold and copper A major beneficiary of high metal prices with the industry’s largest gold production and competitive operating costs Reflected in expanding
Slide 30: Footnotes
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Barrick Gold Corporation Annual General Meeting 2012 FOOTNOTES 1. Adjusted net earnings, EBITDA, adjusted operating cash flow, total cash costs and net cash costs per ounce/per pound, C1 cash costs per pound, total cash margins and ne
Slide 31: Barrick Gold Corporation Annual General Meeting 2012
Barrick Gold Corporation, Annual General Meeting 2012 May 2, 2012 Barrick Gold Corporation Annual General Meeting 2012 31