Barrick Mining Corporation · TSX:ABX
Barrick Mining — The Jo'burg Indaba 2020
17 slides from Barrick Mining's conference presentation, Oct 7, 2020
Slide 1: Gold and Gold Mining in 2020 and Beyond…a global perspective
Gold and Gold Mining in 2020 and Beyond…a global perspective The Jo’burg Indaba 2020
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: Gold has outperformed major currencies as a means of exchange…
Gold has outperformed major currencies as a means of exchange… Relative value between major currencies and gold since 1900* Outperformance particularly marked immediately after Value in gold the end of the Gold Standard and subsequently when major economies defaulted A key factor behind this robust
Slide 4: Gold is a store of value…
Gold is a store of value… Benchmarked to 100 Performance of Gold against Currencies 800 Perf. Since 2000 700 Gold (US$) +553% EURUSD +16% CADUSD +8% 600 AUDUSD +8% GBPUSD (21%) ZARUSD (64%) 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 5: Gold has significantly outpaced inflation…
Gold has significantly outpaced inflation… Indexed Performance of Gold Price In Various Currencies (Since 2000) 1,000 900 Perf. Since 2000 Gold (ZAR) +1,710% 800 Gold (£) +723% Gold (US$) +553% Gold (A$) +507% 700 Gold (C$) +504% Gold (€) +464% 600 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005
Slide 6: Quantitative easing and the associated value destruction is best measured by the Gold Price…
Quantitative easing and the associated value destruction is best measured by the Gold Price… $3,000 $2,500 $2,000 Gold price (US$/oz) $1,500 $1,000 $500 $0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Gold (Nominal) Gold (Real) Base Gold Price Note: Market data as of September 24, 2020. Re
Slide 7: Have we reached “Peak Gold”?...
Have we reached “Peak Gold”?... Major gold discoveries Moz US$ million US$/oz 180 12000 160 10000 140 120 8000 100 6000 80 60 4000 40 2000 20 0 0 Gold discoveries Moz Gold production Moz Exploration budgets $m Gold price $/oz 7 Source: SNL Metals & Mining
Slide 8: Industry Reserves are in Decline….
Industry Reserves are in Decline…. Moz Au 1000 959 967 898 900 849 860 830 818 800 766 744 700 713 700 614 584 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Agnico Eagle, AngloGold Ashanti, Barrick, China National, Freeport McMoRan, Gold Fields, Goldcorp,
Slide 9: Quality of the reserves and resources remain under pressure…
Quality of the reserves and resources remain under pressure… Reserve Design Price vs. Gold Price (2000 – Current) US$/oz Reserve Price Avg. Gold Price In response to the rising gold price, mining $1,750 companies increased their reserve design prices1 $1,500 (i.e. lowered cut-off grades) in-step wit
Slide 10: Global Gold Production Under Pressure…
Global Gold Production Under Pressure… Industry facing production precipice 000 oz 120,000 100,000 80,000 60,000 40,000 20,000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 North America Central & South America Europe CIS Middle East Afric
Slide 11: Global Mining Industry becomes relevant as an investment…
Global Mining Industry becomes relevant as an investment… Although still nascent, the consolidation of the gold sector has already created synergies of equal value to a new gold major Key Deals Since Barrick / Randgold Merger Announcement Top 10 Gold Mining Companies4 (Based on Market Capitalisation
Slide 12: World Class Gold Mines…
World Class Gold Mines… Top gold mines by tonnes of gold produced annually* *Latest available data as of September 2020 Source: World Gold Council via BBC 12
Slide 13: As an Industry, we need to be Global…
As an Industry, we need to be Global… Canadian Shield Baltica Siberian Craton Arabian Nubian Shield North West China African Craton Craton Dhawar Amazonian Congo North Craton Craton Tanzanian Australian Craton Craton Rio de la Kalahari Craton Malagasy Yilgarn Plata Craton 13
Slide 14: Poverty driving developed world policy…
Poverty driving developed world policy… G7 leaving others behind Impact of Covid-19 on Global Extreme Poverty* Millions of people in extreme poverty World Bank estimates shows an 740 additional 100 million people pushed June downside projection 720 into extreme poverty as a result of measures to dea
Slide 15: Mining is an Enabler and Change Agent…
Mining is an Enabler and Change Agent… The Macro level impact of mining in low and middle income countries could assist economic recovery on various levels: Foreign Direct Investment Exports: Foreign Valuta Government Revenue Direct and Indirect Employment Gold mining creates 6 indirect jobs for eve
Slide 16: ESG…the very core of Building a Social License
ESG…the very core of Building a Social License Continuously increasing duty on mining companies to responsibly manage resources and to maintain healthy ecosystems, supportive of the quality of life of human society, for present and the future Current challenge for mining companies is to both remedy
Slide 17: Gold as a mining industry has to prove its relevance to future generations…
Gold as a mining industry has to prove its relevance to future generations… Governments Successful partnerships in NGOs and host countries are key to Regulators finding, developing and running world class mines Examples of this are reflected in the success of our operations in Africa where we’ve del