Slide 1: Building Value in Everything We Do
Building Value in Everything We Do TD Newcrest Mining g Conference o – January a ua y 24,, 2012 0 1
Slide 2: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD‐LOOKING INFORMATION Certain information contained in this presentation, including any information as to our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future perfor
Slide 3: Barrick is Well Positioned
Barrick is Well Positioned Scale and global reach – ~$50 billion market cap; p 25,000 employees p y Geographic and operational diversity – 26 operating mines and 9 projects located on 5 continents High quality, largest reserve base Operational, project and technical depth of expertise Subs
Slide 4: 2011 Preliminary Results
2011 Preliminary Results Final full year results and 2012 guidance to be released in February Preliminary results indicate the following: – Met gold operating guidance of 7.6-7.8 7 6-7 8 Moz of production at total cash costs of $460-$475/oz(1) (in line with original guidance) – Met copper produc
Slide 5: 2012 Preliminary Outlook
2012 Preliminary Outlook Gold: Production expected to be slightly lower than 2011 Total cash costs expected to be ~15% higher, primarily due to: – inflationary cost pressures – grade d profile fil – change in production mix Copper: pp Production expected to be higher due to a full year of prod
Slide 6: Barrick's Strategy
Barrick’s Strategy Grow and improve the quality of production base by: – maximizing the potential of existing assets – developing high return projects – investing in exploration and selective acquisitions Production will continue to be dominated by gold with complementary copper production from
Slide 7: Capital Allocation Strategy
Capital Allocation Strategy A Balanced Approach Track record of Invest in high Balance sheet paying a return projects management progressive dividend d d d Improve quality of Maintain strong credit Dividend increased portfolio with long life, ratings, preserve access by 25%(1); low cost gold and to
Slide 8: Leverage to Gold
Leverage to Gold Barrick EPS & CFPS vs Gold Barrick’s adjusted Returns ((US$) $) 900% net ea earnings nings and ( = adjusted) 800% cash flow growth (1) 700% has significantly 600% outpaced the rise in 500% gold prices g p over the 400% past 7 years 300% 200% 100% ((1)) See final slide #1. All EPS
Slide 9: 2011 Strong Financial Results
2011 STRONG FINANCIAL RESULTS Nine months ended September 30 Net Adjusted EBITDA(1) Adjusted US$M 6,378 Earnings Net Earnings((1)) OCF((1)) US$M US$M US$M 4,295 4295 34% 3,719 , 15% 4 751 4,751 3719 3,525 3,506 2,621 34% 2,499 40% 9M 10 9M 11 9M 10 9M 11 9M 10 9M 11 9M 10 9M 11 (1) See final slide #
Slide 10: Margin Expansion
Margin Expansion Total Cash Margins(1) 1,550 Net Cash Margins(1) 1,550 US$/oz US$/oz 1,105 1,225 Avg. Realized Price(1) 1,228 Avg. Realized Price(1) 1,228 819 935 985 985 872 521 872 625 429 535 443 464 445 409 Total 337 360 325 Cash 293 Net Costs(1) Cash Costs(1) 2008 2009 2010 2011 2008 2009 2010
Slide 11: ROE versus Peers
ROE versus Peers 2011E Return on Barrick is capturing Shareholders’ Equity q y(1) 22 Percent the benefit of margin expansion and strong 14 operating performance p Senior Peer Average(2) Barrick(2) (1) See final slide #1 (2) Barrick’s return on shareholders’ equity is based on annualized 9M 2011 ad
Slide 12: Dividend Growth
Dividend Growth Semi-Annual Dividends Quarterly (presented as a quarterly equivalent)(1) Dividends 15¢ US¢ ¢pper share +25% 12¢ +170% 9¢ OR 22% CAGR 6¢ 5.5¢ 2006 q quarterlyy equivalent q 3¢ 0¢ 2006 2007 2008 2009 2010 2011 (1) See final slide #5 12
Slide 13: History of Reserve/Resource Growth
History of Reserve/Resource Growth 50 Reserve/resource ounces added post acquisition or discovery ounces millions 40 ACQUIRED ADDED GRASSROOTS 30 20 10 0 13
Slide 14: Red Hill / Goldrush
Red Hill / Goldrush(1) Pipeline p Cortez Hills Horse Canyon Red Hill Goldrush Oblique aerial photo looking to the northwest (1) See final slide #3 14 14
Slide 15: World Class Operations and Projects
World Class Operations and Projects Total Global Gold Mines by Size 5 mines Barrick Mines by Size >1 Moz (2010 gold production) 9 mines >800 800 Koz K 3 Goldstrike Veladero 23 mines i Cortez >500 Koz 4 159 mines >100 Koz 5 3 Projects ~1 Moz Pueblo Viejo 17 2 Projects ~800 800 Koz Cerro Casale Turquo
Slide 16: Pueblo Viejo in Construction
Pueblo Viejo IN CONSTRUCTION First production anticipated in mid-2012 – overall construction ~85% 85% complete 625-675 K oz of expected average annual production to Barrick at expected total cash costs of <$350/oz(1) Mine construction capital of $3.6-$3.8 B(2) (100%) or $2.2-$2.3 B (Barrick’s
Slide 17: Pascua-Lama in Construction
Pascua‐Lama IN CONSTRUCTION Mill Building Argentina Initial production expected in mid-2013 Expected gold production of 800-850 K oz/year at negative cash costs of $225- $275/oz(1) at $25/oz silver Expected silver production of Los Amarillos Camp ~35 M oz/year(2) Pre-production capital off $
Slide 18: Project Cash Flow Potential
Project Cash Flow Potential Pueblo Viejo EBITDA(1) Pascua-Lama EBITDA(1) US$B – Barrick’s share US$B ~0.9 ~1.7 125% 143% ~0.4 ~0.7 Feb 2008 May 2009 At $926(2) At $1,600(3) At $930(5) At $1,600(3,4) (1) See final slide #1 (2) See final slide #8 (3) See final slide #9 (4) Based on a silver price of $
Slide 19: Low Cash Cost Projects
Low Cash Cost Projects Global Gold Industry Cash Cost Curve(1) $1,500 $1,000 Senior Peer 2011E Weighted Average Cash Costs(2) $655 $/oz $500 US$ Barrick 2011E Total Cash Costs $460-$475(3) Pueblo Viejo <$350/oz(3,4) $0 Pascua-Lama -$225 $225 to -$275 $275(3,4) -$500 0% 25% 50% 75% 100% (1) Source: G
Slide 20: Projects – Next Generation
Projects – Next Generation Barrick’s deep project CONSTRUCTION Jabal Sayid (Cu) S. Arabia pipeline provides FEASIBILITY/ PERMITTING / significant future Cerro Casale (Au/Cu) Chile option p value Donlin Gold (Au) Alaska Kabanga (Ni) Tanzania PRE-FEASIBILITY Lumwana Expansion (Cu) Zambia Turquoise R
Slide 21: Excellent Growth Potential
Excellent Growth Potential Gold Production Silver Production Copper Production (Moz) ~9.0 (Moz) ~50 (Mlbs) ~1,000 Zaldivar Pascua Sulphides -Lama Lumwana E pansion Expansion Pueblo Jabal Sayid 7.6-7.8 Net Viejo Lumwana Depletion 450-460 Zaldivar ~5 6.0 2011E Target within 2011E Target within 2011E T
Slide 22: Bullish on Gold
Bullish on Gold Gold retains purchasing power while other currencies are being devalued: – monetary and fiscal reflation & sovereign debt concerns – low real interest rates – Central Bank intervention in currency markets – inflation in emerging markets – excessive global FX reserves Growth in em
Slide 23: Equity/Commodity Disconnect
Equity/Commodity Disconnect Consensus Estimates (CE) vs Actual Prices Consensus view US$/oz has consistently 1,800 Forward Spot ~$1,778 underestimated Forward Curve actual prices Current ~$1,660 1 600 1,600 Actual ‘11 Avg. ~$1,573 Equities should 2011CE respond as price 1,400 forecasts recalibra
Slide 24: Investment Case for Barrick
Investment Case for Barrick Strong long term metal price fundamentals Major M j beneficiary b fi i off rising i i metal t l prices i with ith the th industry’s largest gold production and competitive operating costs Reflected in expanding margins, record earnings, and high returns on equity
Slide 25: Investment Case for Barrick
Investment Case for Barrick Deep pipeline of projects offering investment options for the future Continually improve CSR practices to maintain license to operate Exploration commitment and strategy yielding major results with new discoveries at Red Hill/Goldrush Growing cash flow and positiv
Slide 26: Building Value in Everything We Do
Building Value in Everything We Do TD Newcrest Mining g Conference o – January a ua y 24,, 2012 0 26
Slide 27: Footnotes
Footnotes 1. Adjusted net earnings, adjusted operating cash flow, return on equity, EBITDA, net cash costs per ounce, net cash margin per ounce, total cash costs per ounce, total cash margin per ounce, total cash costs per pound and average realized price per ounce/pound are non-GAAP financial measu