Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Investor Presentation (November 2014)
28 slides from Barrick Mining's investor presentation, November 2014
Slide 1: Corporate Presentation
Corporate Presentation November 2014 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: 2014 Accomplishments to Date
2014 Accomplishments to Date Appointed six new independent Board members (now 10 of 13 independent) and added technical/mining expertise Established new management structure and shareholder friendly executive compensation plan Delivered strong operating results – reduced AISC guidance for t
Slide 4: 2014 Financial Highlights
2014 Financial Highlights Strong operating and Year-to-date Highlights financial results EPS ($) (0.05) Adj. EPS(2) ($) 0.53 Narrowed gold production OCF ($B) 1.93 guidance(1) to 6.1-6.4 Moz Gold Prod. (Koz) 4,712 Reduced AISC guidance to AISC ($/oz) 844 $880-$920/oz(1,2) − the lowest of senio
Slide 5: Cost and Capex Guidance Reductions
Cost and Capex Guidance Reductions AISC ($/oz) Adj. Oper. CAPEX ($B) 980 Costs(1,2) ($/oz) 2.7 Guidance Guidance 2.5 Range 940 640 Range 920 Guidance 630 2.4 900 920 Range 2.2 590 580 880 Revised Revised Revised Revised Original in Q2 in Q3 Original in Q2 Original in Q2 2014 2014 2014 2014 2014 2014
Slide 6: Barrick's Priorities to Deliver Returns
Barrick’s Priorities to Deliver Returns Deliver the full potential of our assets and people Investments Focus on high-potential assets in core regions must meet ROI thresholds Improved free cash flow and Establish deep relationships with key stakeholders shareholder returns Restore the b
Slide 7: Operational Excellence
Operational Excellence Put the best people in key roles and enable them to deliver their full potential Identify value creation potential through efficiencies and cost reduction initiatives Excelling across every aspect of the company 77
Slide 8: Best Assets and Regions
Best Assets and Regions Focus on high potential assets in core regions Leverage competitive advantages Strong base of existing high quality mines Ongoing asset optimization 8
Slide 9: Strong Partnerships
Strong Partnerships Establish deep relationships to drive performance and growth Strengthen partnerships with key stakeholders Supports fewer business interruptions and improved productivity Freight Shipping Supplier in Peru Nevada Governor Brian Sandoval Community Engagement in Chile 99
Slide 10: Financial Flexibility
Financial Flexibility Focus on reducing Maintain good net debt liquidity Scheduled Debt Repayments to 2018(1) Cash Position 2.0 $2.7B(2) $0.9B 1.0 $0.2B $4.0B 0 2014 2015 2016 2017 2018 Undrawn Credit Facility (1) As of Sept. 30, 2014. (2) See final slide #5 10
Slide 11: Balance Sheet Improvements to Date
Balance Sheet Improvements to Date 2013 Initial Actions 2014 $2 billion of capital/cost Reduced overall AISC reductions guidance by $50/oz Termed out $3 billion in Lowered 5 core mines debt guidance to $730- $780/oz 2013 Further Measures Reduced capex Reduced dividend by guidance b
Slide 12: Cornerstone Mines in the Americas
Cornerstone Mines in the Americas Pueblo Viejo Lagunas Norte Cortez Veladero Goldstrike 12 12
Slide 13: Creating Value in the Americas
Creating Value in the Americas Cortez Hills Lower Zone prefeasibility expected in late 2015; zone remains open at depth Goldstrike thiosulfate project on schedule for Q4 2014 South Arturo on track to enter production in early 2016 Pueblo Viejo targeting further throughput and recovery improv
Slide 14: 2013 Peer Reserves and Grades
2013 Peer Reserves and Grades (1) Reserve Ounces (Moz) 120 110 Barrick 100 104 M oz 90 Newmont 80 Newcrest 70 60 Goldcorp 50 40 Kinross 30 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 (1) Source: Company filings. See final slide #4. Reserve Grade (g/t) 14
Slide 15: A Deep Pipeline
A Deep Pipeline Deep pipeline with strong potential to exceed risk- adjusted hurdle rates of return Advancing several projects in Nevada through the prefeasibility stage (PFS) Near Mine Orebody Mine Third Party Exploration(1) Extensions Expansions Opportunities Maximize Excellent Identifie
Slide 16: Goldrush – Prefeasibility in Mid-2015
Goldrush – Prefeasibility in Mid-2015 Cortez Portal Hills Mine Very high-grade potential untested and open Exploration Decline (permit application submitted) High-grade continuity being Goldrush Deposit(1) established 10 Moz M&I Resources 5.6 Moz Inferred Resources 1 mile (1) See final slide #4 16 1
Slide 17: Copper Operations
Copper Operations Production guidance improved to 440-460 Mlbs C1 cash cost guidance narrowed to $1.90-$2.00/lb Zaldivar remains a steady producer of free cash flow Significant operational improvements at Lumwana Jabal Sayid JV to close in Q4 2014; start-up in late 2015 Zaldivar Lumwana Ja
Slide 18: Pascua-Lama Update
Pascua-Lama Update Ramp-Down Completed Currently on care and maintenance New Executive Project Director will focus on: – optimizing detailed engineering – improving project economics – developing robust execution plan for remaining construction Community Water Monitoring Program Requires minim
Slide 19: Securing our License to Operate
Securing our License to Operate Responsible Mining includes protecting social license to operate and human rights Create shared benefits for stakeholders Contribute to economic and social development with communities and governments Pro-actively manage impacts Strong management systems, al
Slide 20: Priorities to Deliver Returns
Priorities to Deliver Returns Deliver the full potential of our assets and people Investments Focus on high-potential assets in core regions must meet ROI thresholds Improved free cash flow and Establish deep relationships with key stakeholders shareholder returns Restore the balance she
Slide 21: Corporate Governance
BARRICK Corporate Governance
Slide 22: Strengthened the Board
Strengthened the Board Six new independent Board members added in 2014 Ernie L. Thrasher David Naylor Nancy H.O. Lockhart Ned Goodman Brian Greenspun J. Michael Evans Increased independence to 10 out of 13; 5 long-serving directors stepped down Added technical/mining expertise Audit, Corpora
Slide 23: Revamped Executive Compensation
Revamped Executive Compensation New compensation package is among the most shareholder friendly in Canada For participating executives: – awards of short-term and long-term incentive compensation are 100% performance-based and measured on transparent scorecards disclosed in advance – majority of c
Slide 24: New Executive Management Structure
New Executive Management Structure Barrick Leadership: A Year of Transition April 30 John L. Thornton assumed the role of Chairman of the Board July 16 Kelvin Dushnisky and Jim Gowans appointed Co-Presidents Strong Executive Management Team Kelvin Dushnisky Jim Gowans Shaun Usmar Kevin Thomson Daria
Slide 25: Appendix: Guidance
BARRICK Appendix: Guidance
Slide 26: 2014 Operating Guidance
2014 Operating Guidance Current Previous Gold Production AISC Production AISC (000's of ounces) ($ per ounce) (000's of ounces) ($ per ounce) Cortez 880-920 750-780 (high end) 925-975 (low end) 750-780 (high end) Goldstrike 865-915 870-900 865-915 (high end) 920-950 (low end) Pueblo Viejo (60%) 600-
Slide 27: 2014 Financial Guidance
2014 Financial Guidance (dollars millions) Current Previous G&A 380-400 380-400 Other Expense 475-525 475-525 Finance Costs 800-825 800-825 Exploration & Evaluation 200-240 200-240 CAPEX Mine Site Sustaining 1,800-2,000 1,800-2000 Mine Site Expansion 300-375 300-375 Projects 100-125 100-125 Total CA
Slide 28: Footnotes
Footnotes 1. Adjusted net earnings per share, adjusted operating costs per ounce, all-in sustaining costs per ounce (“AISC”) and C1 cash costs per pound are non-GAAP financial performance measures with no standardized definitions under IFRS. See pages 46-51 of Barrick’s Third Quarter 2014 Report. 2.