Slide 1: Barrick Gold Corporation
Barrick Gold Corporation March 3, 2016 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: Pueblo Viejo – Ettiene Smuts, General Manager
Pueblo Viejo Ettiene Smuts General Manager, Pueblo Viejo 3
Slide 4: Pueblo Viejo – Vision
Pueblo Viejo – Vision Vision to grow and mature our business, focusing on developing our people and systems while maintaining our returns to stakeholders in a responsible way PVDC is a young organization with outstanding talent, and well on its way along the continuous improvement curve Safest
Slide 5: Pueblo Viejo – Footprint of DR Assets
Pueblo Viejo – Footprint of DR Assets Cotui Hatillo Reservoir Pueblo Viejo Fiscal Reserve Maimon 5
Slide 6: Site overview
Site overview Minesite operations Montenegro Fiscal Reserve 6
Slide 7: Pueblo Viejo – Site Overview
N Pueblo Viejo – Site Overview Admin Process Plant Tailings Moore Pit Montenegro Pit Hatillo Reservoir 0 Kilometers 10 7
Slide 8: Pueblo Viejo – Tour Route and Stops
Pueblo Viejo – Tour Route and Stops N 8 Admin – Close out & depart Lunch 6 1 Helipad Introduction 2 Truck shop 5 7 Process Plant Moore Pit 3 4 Water Discharge 8
Slide 9: Pueblo Viejo – Manuel Rocha, Executive Director
Pueblo Viejo Manuel Rocha Executive Director, Dominican Republic 9
Slide 10: Project History
Project History Barrick Mine acquires construction Placer Placer commences Dome Dome PVDC Construction awarded Feasibility raises and ramp-up rights completed US$1B completed 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 1 Rosario Fiscal ESIA ESIA Nameplate Dominicana Reserve filed app
Slide 11: Corporate Responsibility
Corporate Responsibility Education programs - One laptop per child program Community governance, safety and security training Local community eye care and dental work programs ENDA project – small business initiatives in agriculture and eco tourism $30M invested over eight years, currently
Slide 12: Pueblo Viejo – Before and After
Pueblo Viejo – Before and After After Before After 12
Slide 13: Pueblo Viejo – Margajita River
Pueblo Viejo – Margajita River Before After 13
Slide 14: Dominican Republic Economy
Dominican Republic Economy PVDC represents largest foreign investment ever made in the DR Number one exporter in country, likely to remain so for years to come 2,200 in permanent employment, of which 93% are Dominican and 50% are from local province 600+ Dominican companies as current or pas
Slide 15: Government Relations
Government Relations Largest tax contributor, paying over 45% of all corporate taxes collected In 2013, first year of full production, PVDC accounted for 55% of the increase in GDP of the Dominican Republic – PVDC is the anchor to DR’s financial stability Presidential elections scheduled May o
Slide 16: Pueblo Viejo – David Soares, CFO
Pueblo Viejo David Soares CFO, Pueblo Viejo 16
Slide 17: Streaming Agreement
Streaming Agreement Stream done at Holdco level and does not impact PVDC – linked to production from PV Barrick received upfront cash payment of $610M in exchange for gold and silver stream – 7.5% of Barrick share of gold produced until 990,000 ounces delivered, and 3.75% thereafter – 75% of Bar
Slide 18: PVDC Taxation under the SLA
PVDC Taxation under the SLA MONTHLY QUARTERLY Corporate Income Tax 25% on Taxable Income Annual Royalties Minimum Tax at variable rates per 3.2% on Gross Revenues + OR gold price (Approx.15% of gross revenues in 2015) Net Profit Interest 28.75% on Taxable Cash Flow 18
Slide 19: PVDC Taxation – Quarterly Payments
PVDC Taxation – Quarterly Payments Quarterly payments are the higher of CIT+NPI or AMT Corporate Income Tax Tax regime is an integral part of SLA 25% on Taxable Income Taxable cash flow is equivalent to taxable income plus or minus certain adjustments. Equivalent to 31% of taxable income in +
Slide 20: PVDC Taxation – Quarterly Payments
PVDC Taxation – Quarterly Payments AMT is renegotiated every three years, as per SLA AMT is variable and rates are directly related to gold prices. Rates increase/decrease as Annual gold prices increase/decrease Minimum Tax at variable rates per Renegotiating AMT rates for 2017 in 2016 gold pr
Slide 21: Pueblo Viejo – Ettiene Smuts, General Manager
Pueblo Viejo Ettiene Smuts General Manager, Pueblo Viejo 21
Slide 22: Energy Supply Critical to Continued Success
Energy Supply Critical to Continued Success Quisqueya (QQ1) Power plant background Capital invested – $323 million – Power plant $243 million – Transmission line and substation $79 million 100% Equity owned by PVDC Power plant provides low-cost, reliable, long-term power to PVDC Functional
Slide 23: Energy Opportunities Expanding
Energy Opportunities Expanding QQ1 power station provides secure low cost energy supply Balance of long‐term security of power supply versus low‐cost benefits under review Option to add significant value by leveraging existing assets 23
Slide 24: Energy Opportunities – Leveraging Capacity of QQ1
Energy Opportunities – Leveraging Capacity of QQ1 1. Run QQ1 at 100% and sell excess power to grid – Production cost 6¢/kwh vs. grid price 11¢/kwh Currently QQ1 power plant is running at limited capacity to supply PVDC with 120MW of power Opportunity to fully leverage asset by ramping up to full
Slide 25: Energy Opportunities – Expanding & Diversifying
Energy Opportunities – Expanding & Diversifying 2. Purchase 100MW of power from alternative producer – Enables up to 180MW of power sales to grid PVDC can leverage its position as the most attractive power off-taker in the DR to negotiate favorable terms – Single largest customer in the DR at 50MW
Slide 26: Energy Opportunities – Enabling LNG
Energy Opportunities – Enabling LNG 3. Convert plant from HFO to LNG to reduce exposure to oil prices – Capex estimated at below $100 million Motivate natural gas pipeline and negotiate favorable long term supply of natural gas Leverage current low price fuel environment to negotiate best terms
Slide 27: Safety Performance & Priorities
Safety Performance & Priorities Significant improvement in safety as mine matures Winners of Annual Safety Award Incident related to mobile equipment currently a major focus Next step to achieve zero incidents – Courage to Care 2015 Pueblo Viejo & Power Assets TRIFR 0.76 YTD 2015 Target 0.50
Slide 28: Incidents and Injury Rates
Safety “Courage to Care” Courage to Care is the next step in our journey to achieve zero incidents at Barrick. Courage to Care is about building an interdependent culture where we foster good relationships and care for others to make the right decisions at all levels. Incidents and Injury Rates “Som
Slide 29: Pueblo Viejo – Overview
Pueblo Viejo – Overview Ownership: 60% Barrick (operator), 40% Goldcorp Mine Type: Open Pit Products: Gold, Silver 2015 Reserves1: 9.0 Moz Gold at average grade of 2.97 g/tonne 2015 M&I Resources1: 7.7 Moz Gold at average grade of 2.46 g/tonne 2016 guidance2: 0.60-0.65 M oz at AISC3 of $
Slide 30: Mining
Mining Open pit – truck/shovel 104K tpd from 2 pits (excluding re-handle and quarry) Strip ratio 2015 of 1.06:1 and LOM strip of 1.4:1 Mined grade: 3.12 g/t Cost: $2.84 per tonne – Declining steadily since 2013 – Targeting below $2.50 in 20161 1. See final slide #2 30
Slide 31: Plant Overview
. Ws Plant Overview BARRICK
Slide 32: Processing
Processing 24K nominal tonnes per day throughput – remainder of ore is placed on long term stockpiles Average head grade: Au 4.94 g/t Average Au recovery: 87% Cost: $50 per tonne – Steadily declining as production has ramped up – Targeting sub-$50 for 20161 1. See final slide #2 32
Slide 33: Simplified Process Flowsheet
Primary Crusher Solution [S3]<-; Cooling Towers (8) Wash Circuit Feed Tank Barrick Pueblo Viejo Simplified Process Flowsheet zs (Gold+Silver and Copper Production Flows Shown) Heating BARRICK GRINDING Towers (2) =o Trash CRUSHING [ Cyclone l Screen WY AUTOCLAVING Pebble Crusher Semi-autogenous Dy Sc
Slide 34: Autoclaving (pressure oxidation)
Autoclaving (pressure oxidation) PV autoclaves have 2.75 times the processing volume as a Goldstrike autoclave – largest in the world The PV sulfur feed rate is 2.98 times that of Goldstrike PV is achieving an oxidation rate of 98% Overall recoveries impacted by presence of carbonaceous ore
Slide 35: Lime Kilns
Lime Kilns On site limestone quarries Three vertical 500 tpd kilns Kilns are producing high quality lime – 93% activity PVDC produces 1,600 tonnes per day. Next largest producer only capable of 100 tonnes per day. Security of supply 35
Slide 36: Enhancing Silver Recovery
Enhancing Silver Recovery Hot cure and lime boil processes Innovative Barrick developed technology to increase silver recovery 2015 silver recoveries of 33% Theoretical maximum recovery around 86%; however, maintenance impact on heat, lime and retention time reduces recovery to 80% Recent
Slide 37: Critical event in November 2015
Critical event in November 2015 25,000 Capacity 20,000 Moved scheduled 15,000 maintenance forward 10,000 5,000 Portable compressor sets coming on-line 0 15-Nov-15 22-Nov-15 29-Nov-15 6-Dec-15 13-Dec-15 20-Dec-15 27-Dec-15 3-Jan-16 10-Jan-16 17-Jan-16 24-Jan-16 31-Jan-16 7-Feb-16 Two of three motor
Slide 38: Rapid Response Reduced Downtime
Rapid Response Reduced Downtime 38
Slide 39: Growth Opportunities through Minex
Growth Opportunities through Minex1 2015 year-end reserves based on a long-term gold price of $1,200 per ounce The ultimate pit size was limited to match the remaining TSF capacity (LL & La Piñita) Potential to increase reserves and mine life with additional TSF capacity Assumes sufficient p
Slide 40: Growth Opportunities through Tailings Expansion
Growth Opportunities through Tailings Expansion Prefeasibility to be commissioned in H2 2016 to evaluate possible increase in tailings storage capacity – potential to move a significant portion of the mine’s 7.7 Moz of gold and 44.7 Moz of silver in M+I Resources to Reserves1 1. Barrick’s share (6
Slide 41: Business Improvement Opportunities
Business Improvement Opportunities 2015 successes 2016 Best in Class initiatives Resolved carbon scale issue • Continue employee development Improved silver circuit • Expat headcount reduction 20%; reduce reliance on contractors CN code certification • Achieve ISO 14001 certification Develop
Slide 42: Pueblo Viejo – Thank you and Questions
Pueblo Viejo – Thank you and Questions 42
Slide 43: Pueblo Viejo – Production Metrics (100% Basis)
APPENDIX Pueblo Viejo – Production Metrics (100% Basis) Koz AISC Production ($/oz) 2013 2014 2015 2016E Metrics $800 800 $735 Tonnes Mined 15,319 35,091 37,893 - (000s) Barrick Attributable Production (60%) $570- 620 Tonnes $597 $600 4,429 6,712 6,917 - $588 Processed (000s) 600 Head Grade 6.139 5.5
Slide 44: Pueblo Viejo – Financial & Cost Metrics (60% Basis)
APPENDIX Pueblo Viejo – Financial & Cost Metrics (60% Basis) Financial 2013 2014 2015 2016E metrics Gold AISC 735 588 597 570-620 ($/oz) Gold Cash 561 446 467 440-480 Costs1 ($/oz) Sustaining 73 80 61 - Capex ($M) Expansion 0 0 0 - Capex ($M) Segment 569 912 702 - EBITDA1 ($M) 1. See final slide #3
Slide 45: Pueblo Viejo – Mining (100% Basis)
APPENDIX Pueblo Viejo – Mining (100% Basis) Open pit mining at 2 large pits, Moore and Montenegro and one small Mining Metrics 2013 2014 2015 satellite pit, Monte Oculto Norte Open Pit – Conventional truck/shovel operation – Pit dimensions: 2.5km long x 1.5km Mining rate (ktpd) 42.0 96.1 104.0 wid
Slide 46: Pueblo Viejo – Processing (100% Basis)
APPENDIX Pueblo Viejo – Processing (100% Basis) Processing metrics at 100% 2013 2014 2015 Autoclave Cost ($/tonne) 77.8 58.0 50.4 Throughput (tonnes/day) 12,100 18,400 18,900 Recovery (%) 93.0% 92.9% 86.8% Total production (koz Au) 813 1,109 954 Total Cost ($/tonne) 77.8 58.0 50.4 Throughput (tonnes
Slide 47: Pueblo Viejo – 2015 Reserves and Resources
APPENDIX Pueblo Viejo – 2015 Reserves and Resources1 Gold Reserves and Resources 2015 2014 Tonnes Grade Gold Tonnes Grade Gold (000s) (gm/t) kozs (000s) (gm/t) kozs Total P&P Reserves 93,877 2.97 8,960 87,522 3.31 9,318 M&I Resources 97,881 2.46 7,731 74,748 2.62 6,301 Inferred Resources 2,333 1.96
Slide 48: Endnotes
Endnotes 1. Estimated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. Estimates are as of December 31, 2015, unless otherwise noted. Complete mineral reserve and mineral resource data for all mines and projects referenced in this presentation,