Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Non-Deal Roadshow (June 2015)
33 slides from Barrick Mining's roadshow presentation, Jun 17, 2015
Slide 1: Haywood Securities Sales Desk Presentation
Haywood Securities Sales Desk Presentation Toronto | June 17, 2015 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: Barrick: Best Assets and Regions
Barrick: Best Assets and Regions High quality portfolio with excellent upside potential Spring Valley Strong competitive advantages in core regions – Nevada and the Andes Pipeline of projects with potential to grow free cash flow1 per share 1. See final slide #1 3
Slide 4: Best Assets and Regions
Best Assets and Regions Pueblo Viejo Lagunas Norte Cortez Goldstrike Veladero 1. See final slide #1 and #2 4
Slide 5: High Grade Reserve Base
High Grade Reserve Base Grams per tonne1 The average reserve grade of Barrick’s core mines 2.01 BARRICK is more than double the peer average 5 CORE MINES 1.37 BARRICK TOTAL 1.04 0.95 0.9 g/t PEER AVERAGE 0.72 0.66 NEWMONT GOLDCORP KINROSS NEWCREST 1. See final slide #3 5
Slide 6: Production and Cost Outlook
Production and Cost Outlook Gold Production (Moz) 6.2 6.2-6.61 6.0 2015 gold guidance on- AISC AISC $864 $860- track for production of $8951 6.2-6.6 Moz at AISC of 4.0 $860-$895/ounce 2.0 2014 2015 2015 0 1. See final slide #2 6
Slide 7: Copper Outlook
Copper Outlook Zaldivar Lumwana Jabal Sayid Strong cash flow Operations to continue Shipments of copper generator under Zambia’s new concentrate Initiated sale of stake proposed tax regime anticipated in early Free cash flow positive 2016 at current copper prices Improved 2015 copper out
Slide 8: Rapid Transformation
Rapid Transformation Value Swiftly returning Continuing to driving to original drive fast-paced initiatives business model change Rigorous capital Lean, Capex reduced allocation - decentralized after initial specific ROIC operating model capital review thresholds and more Head-office staff e
Slide 9: Restoring a Strong Balance Sheet
Restoring a Strong Balance Sheet Return to a lean, decentralized operating model Maximizing Targeted G&A cuts of $30M in 2015 & $70M in 2016 1 Free Cash Flow Initial capital review led to $200M capex reductions Expect positive FCF in 2015 at current gold prices 2 Disciplined Non-Core Asset S
Slide 10: Restoring a Strong Balance Sheet
Restoring a Strong Balance Sheet Disciplined non-core asset sales - Value of other gold and copper assets can be leveraged to cover debt reduction target Core mines Other mines1 Copper Cortez Cowal (sold)3 Zaldívar Goldstrike Porgera (50% sold)3 (sale process for partial stake Bald Mountain underway
Slide 11: Applying Strict Capital Discipline
Applying Strict Capital Discipline Capital allocation Overall portfolio must Available Capital deliver ROIC of 10-15% Current Portfolio Allocating capital to Existing Growth the best assets in our Mines Projects core regions 15% Existing mines compete Return on for capital and must Invested Ca
Slide 12: Reducing Capital Expenditures
Reducing Capital Expenditures Total Capex ($ Billions) Re-assessing 2015-2016 $2.2 -7% capex budgets -11% $200M in capex $1.9- reductions identified $2.2 $1.8- $2.1 Further reductions expected 2014 2015E 2015E (actual) (original) (revised) 1.0 12
Slide 13: Maximizing Free Cash Flow
Maximizing Free Cash Flow Execution Underway Actions Implemented a decentralized model – annualized G&A savings of $70M in G&A 2016 Capex Identified $200M of capex reductions – more expected Opex Incorporating opportunities from Value Realization reviews into mine plans Pascua- Identifying opportuni
Slide 14: Strong Liquidity
Strong Liquidity Less than $0.9B due by 2017 $2.3B in cash1 and $4.0B undrawn credit facility Cash Position Scheduled Debt Repayments to 20182 2.0 $2.3B 1.5 <$0.9B 1.0 0.5 $4.0B 0 Undrawn Credit Facility 2015 2016 2017 2018 1. See final slide #7 2. As of Mar. 31, 2015 14
Slide 15: Value Realization Studies
Value Realization Studies Expert teams assessing economic potential of every mine Studies will support non-core asset sale processes Upside opportunities being factored into mine plans 15
Slide 16: Pueblo Viejo — Value Realization Study
Pueblo Viejo — Value Realization Study Extend mine life Processing throughput Convert 7-8 Moz resources to reserves1 Up to 10% increase by 2019 Convert plant from HFO to LNG Convert lime kilns to LNG Reduced operating costs by end of 2017 Reduced energy costs and emissions 1. See final slide #8. 16
Slide 17: Focused on Growth in the Americas
Focused on Growth in the Americas Turquoise Ridge Cortez Hills Goldrush Spring Valley 17
Slide 18: Turquoise Ridge - Our Highest Reserve Grade
Turquoise Ridge - Our Highest Reserve Grade 16.9g/t2 2014 drilling added +400 koz Tur- to North Zone M&I resources2 quoise Ridge North Zone is higher grade than existing mine North Zone Highlights 71% of reserve tonnes 74% of LOM ounces 45% higher grade vs. South Ore body still open to t
Slide 19: Turquoise Ridge, Nevada
Turquoise Ridge, Nevada OUTLOOK 2015 production of 175-200 Koz (75% interest) at AISC of $875-925/oz OPPORTUNITIES TO ADD VALUE An emerging core mine3 Second shaft will bring forward >1 Moz of production (100% basis): – Production increases to ~500 koz1 at AISC of $625-$675/oz – Capex of $300-$3
Slide 20: Goldrush — 70% of Resource in M&I
Goldrush ̶ 70% of Resource in M&I Portal High-grade potential untested and open Cortez to the north Hills Mine Goldrush Deposit1 10.6 Moz M&I 4.9 Moz Inferred 0 miles 1 2 3 4 1. See final slide #3 20
Slide 21: Exploration Focused in the Americas
Exploration Focused in the Americas $220-$260M1 budget in 2015 ~85% focused on the Americas Lagunas Norte Pierina Half directed to Nevada Other PERU 15% Mine Project South Turquoise Ridge North Second shaft America AREA America ENLARGED Goldstrike 35% Elko 50% NEVADA Carlin Zaldivar Spring Valle
Slide 22: New Discovery at Alturas
New Discovery at Alturas Located on the prolific Chile Argentina El Indio Belt in Chile Pascua-Lama Veladero Primarily oxide, similar to Barrick Claims Veladero but could be significantly higher grade Expect initial resource with year-end results1 1. See final slide #11 El Indio Tambo Barrick
Slide 23: Maximizing Free Cash Flow and Returns
Maximizing Free Cash Flow and Returns High Quality Portfolio and Attractive Project Pipeline Restoring a Strong Balance Sheet Returning to Original Partnership Culture 23
Slide 24: Appendix
ws BARRICK APPENDIX
Slide 25: Cortez, Nevada
Cortez, Nevada OUTLOOK 2015 production of 825-900 koz at all-in sustaining costs (AISC) of $760-835/oz OPPORTUNITIES TO ADD VALUE Cortez Hills Lower Zone (< 3,800 ft.) Mainly oxide and higher grade vs. current underground mine Limits not yet defined New targets being identified at depth Pr
Slide 26: Goldstrike, Nevada
Goldstrike, Nevada OUTLOOK 2015 production of 1,000-1,150 koz at AISC of $700-800/oz ~1 Moz of annual production 2015-2017 at AISC of <$900/oz OPPORTUNITIES TO ADD VALUE Thiosulfate circuit ramping-up in 2015 Cyanide-free Brings forward 4 Moz in the mine plan 350-450koz of annual productio
Slide 27: Pueblo Viejo, Dominican Republic
Pueblo Viejo, Dominican Republic OUTLOOK 2015 production of 625-675 koz (60% interest) at AISC of $540-590/oz >1 Moz of annual production in 2015-2017 (100% basis) at AISC of <$700/oz OPPORTUNITIES TO ADD VALUE Increase process throughput up to 10% Convert power plant from heavy fuel oil (HF
Slide 28: Lagunas Norte, Peru
Lagunas Norte, Peru OUTLOOK 2015 production of 600-650 koz at AISC of $675-725/oz OPPORTUNITIES TO ADD VALUE Evaluating potential to mine sulfide ore below current pit Significant extension of mine life Potential relocation of autoclave from Goldstrike mine Drilling production blast holes 28
Slide 29: Veladero, Argentina
Veladero, Argentina OUTLOOK 2015 production of 575-625 koz at AISC of $990-1,075/oz OPPORTUNITIES TO ADD VALUE Reducing costs through: – Improved maintenance and blasting activities – Reduced contractor services costs Recovery of ounces from: – Inventory through better management of the leach
Slide 30: Innovation and Technical Expertise
Innovation and Technical Expertise Goldstrike Jabal Sayid New thiosulfate (TCM) New flotation technology process is cyanide-free is cyanide-free 30
Slide 31: Alturas Exploration
Alturas Exploration 1 NORTH SOUTH Cross section San Juan ARGENTINA Coquimbo CHILE Grade x Thickness (gpt-m Au) 100 – 524 25 – 100 0.3 – 25 1. See final slide #10, #11 and #12 31
Slide 32: Alturas Cross Section
Alturas Cross Section > 0.25 gpt Au NORTH SOUTH Argentina > 1.0 gpt Au Cross section1 Chile San Juan ARGENTINA 5000 RL 97m @ 4.40 gpt Au Andesitic Cap 168m @ 1.66 gpt Au Coquimbo CHILE 4750 RL Grade x Thickness Breccia (gpt-m Au)1 100 – 524 4500 RL 25 – 100 Oxidation 0.3 – 25 250m limit Dacitic host
Slide 33: Footnotes
Footnotes 1. Free Cash Flow (“FCF”) per share, all-in sustaining costs per ounce (“AISC”), and C1 cash costs per pound are non-GAAP financial performance measures with no standardized definition under IFRS. See pages 49-54 of Barrick’s First Quarter Report 2015. 2. 2015 guidance is based on gold, co