Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — BMO Capital Markets 2010 Global Metals and Mining Conference
17 slides from Barrick Mining's conference presentation, Mar 1, 2010
Slide 1: The Gold Industry Leader
The Gold Industry Leader BMO Capital Markets 2010 Global Metals and Mining Conference Hollywood, Florida – March 1‐3, 2010
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, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, con
Slide 3: Key Priorities and Progress
Key Priorities and Progress Meet production and cost targets – met gold and copper guidance – 7.4 M oz at total cash costs of $466 per ounce(1) – 393 M lbs at total cash costs of $1.17/lb(1) Ensure low cost, advanced projects remain on track – Cortez Hills, Pueblo Viejo and Pascua-Lama advancing
Slide 4: Gold's Diversifying Role
Gold’s Diversifying Role Trailing 10 year performance to February 25, 2010 Gold +278.1% CRB Index +30.7 % –15.6% –17.3% MSCI World S&P Source: Bloomberg Equity Index 3 Global FX Reserves 2/3 of FX reserves are in US dollars $6 trillion FX reserves are exploding held by 19 US$ trillions countri
Slide 5: Net Official Sector Sales
Net Official Sector Sales (tonnes of gold) 663 Net official sector sales dropped to 44 tonnes in 2009 479 484 Net buying in last 365 three quarters 236 2009 62 04 05 06 07 08 Q1 Q2 Q3 Q4 -5 -9 -4 Source: GFMS, World Gold Council 5 Scarcity Value US$ trillions Global Financial Assets 60 total $11
Slide 6: Outlook - Bullish on Gold
Outlook ‐ Bullish on Gold Price supportive macroeconomic environment: – low interest rates – increased liquidity – sovereign debt – fiscal policies Growth in investment demand Diversification benefits Central banks become net buyers Mine supply expected to contract Scarcity value 7 2010
Slide 7: Margin Expansion
Margin Expansion ~1100 Current Spot Total Cash Costs(1) vs Gold Prices US$ per ounce 645- Margin(1) Avg. Realized Price(1) 985 675 872 519 429 621 545 276 439 265 443 466 425- Total Cash Cost 214 345 455 280 225 05 06 07 08 09 10E (1) See final slide #1 9 Margin Expansion ~1100 Current Spot Net Tota
Slide 8: Reserves & Resources
Reserves & Resources(1)(1) ounces millions 34.8 Grew reserves 31.6 Inferred Resources for the fourth 31.9 65.0 consecutive 61.8 24.9 M+I year 50.6 Resources 35.0 Gold industry’s 138.5 139.8 P&P largest 12.4 123.1 124.6 17.6 Reserves unhedged 88.6 reserves 2005 2006 2007 2008 2009 (1) At Dec. 31,
Slide 9: Balanced Portfolio
Balanced Portfolio 2009 P&P Reserves North America North America 2010E Production 40% Africa 12% North America South 39% America Australia 35% Pacific 13% Africa 8% South America 28% Australia South Africa Pacific 25% America Australia Pacific Industry’s Largest Reserves and Production Mine Projec
Slide 10: Impact of Low Cost Mines
Impact of Low Cost Mines Three new low cost ~2.4 mines expected to million low cost come on stream over the next three years ounces(1) + CERRO CASALE + REKO DIQ CORTEZ + DONLIN CREEK HILLS PUEBLO PASCUA- LAMA + KABANGA Nickel VIEJO 2010 2011 2013 (1) See final slide #4 15 Cortez Hills Project Upda
Slide 11: Cortez Hills Project Update
Cortez Hills Project Update Mining in the Open Pit Heavy Equipment Commissioned Completed Truck Shop Crusher and Reinforced Earth Wall 17 17 Pueblo Viejo Project Update 625-675 Koz to Barrick’s account (60%)(1) Total cash costs of $250-$275/oz(1,2) $3.0 B capital budget(1) (100%) includes Plan
Slide 12: Pascua-Lama Project Update
Pascua‐Lama Project Update 750-800 Koz of gold at total cash costs of $20-$50/oz(1,2) 35 Moz of silver(1) Truck Shop/Conveyor Area Excavation On track for first production Q1 2013 Barriales Camp Expansion +25% of capital committed In line with $2.8-$3.0 B capital budget(1) (1) See final sl
Slide 13: Cerro Casale Project Update
Cerro Casale Project Update Acquiring additional 25% interest for $475 M Increases metal leverage – adds 5.8 M oz Au and 1.4 B lbs Cu(1) Gives Barrick control of large, long life project in attractive region Benefits from regional synergies (1) Copper contained within gold reserves. See fina
Slide 14: Strong Financial Position
Strong Financial Position A-Rated Industry’s Highest Rated Balance Sheet $2.6B Cash Balance $1.5B Undrawn Line of Credit 0.18:1 Net Debt to Total Capitalization $2.9B(1) Strong Cash Flow Generation (1) Adjusted operating cash flow. See final slide #1 All figures as of Dec. 31, 2009 23 African Barric
Slide 15: African Barrick Gold
African Barrick Gold Business model customized to Africa Benefits from Barrick support and expertise Barrick participates in value creation through its +70% interest post IPO The return of capital to Barrick will provide increased financial capacity to fund Barrick’s significant pipeline of
Slide 16: In Closing
In Closing Positive on the outlook for gold Exceptional leverage to the gold price – unhedged production and reserves Expect higher production, lower cash costs in 2010 Large and growing resource base Deep project pipeline: – three lower cost, advanced projects on track – additional four p
Slide 17: Appendix: El Morro
Appendix 29 El Morro Barrick disputes that Xstrata or New Gold could properly sell the interest to Goldcorp Barrick filed an action in Ontario involving New Gold, Goldcorp and Xstrata Barrick intends to vigorously pursue its claims 30
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