Slide 1: Results for the Quarter and Year ended 31 December 2019
Results for the Quarter and Year ended 31 December 2019
Slide 2: Cautionary Statement on Forward Looking Information
Cautionary Statement on Forward Looking Information Barrick cautions that, whether or not expressly stated, all full year and fourth quarter figures contained in this presentation reflect our expected full year and fourth quarter results as of the date of this presentation. Actual audited full year
Slide 3: Health & Safety
Health & Safety… LTIFR 1 was 0.47 for the quarter and 0.50 for the year 2019 Group Injury Rate TRIFR2 was 1.86 for the quarter and 2.24 for the year 3,0 2,75 Decreases in LTIs at Africa and Middle East 2,5 operations and in TRIs at North America operations 2,18 2,23 2,24 Goal to have all operational
Slide 4: Environment and Community
Environment and Community… Zero class 1 (high impact) environmental incidents8 recorded during 2019, in line with the group target On track to achieve goal of all operational mines being certified to ISO 14001:2015 environmental management standard by end of 2020 Lumwana successfully certified durin
Slide 5: Q4 highlights
Q4 highlights… Full year gold production at upper end and copper production above guidance ranges Gold costs per ounce down quarter on quarter Debt net of cash at $2.2 billion, down 47% from 2018 Net earnings per share of $2.26 for 2019. Adjusted net earnings per share 3 up 46% year on year Increase
Slide 6: Group operating results
Group operating results… Q4 2019 was a strong finish for the first year following our transformational merger with Randgold Gold operating results Q4 2019 Q3 2019 2019 2018 Gold production of 5.47Moz for 2019 was at the Production (oz 000) 1,439 1,306 5,465 4,527 upper-end of our guidance range of 5
Slide 7: Group financial results
Group financial results… Financial Results Q4 2019 Q3 2019 2019 2018 Adjusted net earnings 3 of $0.17 per share Revenue ($ million) 2,883 2,678 9,717 7,243 Free cash flow9 of $1.1 billion in 2019 compared to $365 million in 2018 driven by a focus on Tier 1 assets4, NGM Net earnings (loss) ($ million
Slide 8: Nevada complex 100% basis
Nevada complex…100% basis Nevada Gold Mines delivers in line with our production Nevada Gold Mines Q4 2019 Q3 2019 H2 2019 and AISC6 guidance range Total tonnes mined (000) 86,613 85,411 172,074 Successful combination and asset integration by management team upon formation of the JV Average grade pr
Slide 9: Nevada synergies delivered
Nevada synergies delivered… Integration of Nevada operations unlocks synergies as targeted FCF by Category13 NPV 5% by Category13
Slide 10: Carlin
Carlin… Nevada, USA Year on year comparison shows 16% increase in Carlin14 (61.5%) Q4 2019 Q3 2019 2019 2018 Barrick’s attributable production primarily due to the combination of the Carlin and Goldstrike operations Total tonnes mined (000) 13,639 11,584 49,343 59,605 Production in Q4 2019 is overal
Slide 11: Carlin increased reserve grade & resource additions
Carlin…increased reserve grade & resource additionsii Leeville A A’ B B’ A B Carlin Complex (100%) B’ P&P15: 21.47Moz @ 3.32g/t M&I15: 30.74Moz @ 2.68g/t Inferred15: 2.10Moz @ 2.47g/t At 100%, reserves decreased by ~200koz but grade increased from 2.39g/t to 3.32g/t, A’ net of depletion Gold Quarry
Slide 12: Cortez
Cortez… Nevada, USA Production was 6% higher compared to the prior Cortez16 (61.5%) Q4 2019 Q3 2019 2019 2018 quarter, primarily due to increased underground ore Total tonnes mined (000) 23,422 23,357 105,949 121,929 mined and processed at the Carlin Roasters Average grade processed (g/t) 1.29 1.54
Slide 13: Goldrush Complex
Goldrush Complex… Updated resource model for Goldrush completed – to be used as basis for final feasibility study N Goldrush now reported as part of Cortez underground resources with plan to be run under Cortez management once in production Attributable indicated resources at FM19-11DW1i FOURMILE Go
Slide 14: Fourmile significant resource additions
Fourmile…significant resource additions A Looking NorthA’ 2018 inferred resource A A’ 2019 inferred resource Exploration upside Fourmile (100%) P&P: - M&I: - 100m Inf: 1.89Moz @ 10.86 g/t A growing high-grade potentially multimillion-ounce discovery Inferred mineral resources increased to 5.41Mt @ 1
Slide 15: Turquoise Ridge
Turquoise Ridge… Nevada, USA Year on year increase in gold production at lower Turquoise Ridge17 Q4 2019 Q3 2019 2019 2018 AISC resulting from an increase in high-grade UG ore (61.5%) feed from the legacy Barrick Turquoise Ridge mine Ore tonnes processed (000) 934 950 2,201 604 Total cash costs per
Slide 16: Turquoise Ridge strong reserve additions
Turquoise Ridge…strong reserve additions Turquoise Ridge (100%) P&P18: 13.43Moz @ 5.02 g/t M&I18: 17.91Moz @ 4.30 g/t Inf18: 1.79Moz @ 2.69 g/t At 100%, 1.08Moz reserves increase with a slight grade decrease from 5.12 g/t to 5.02 g/t, net of depletion TR UG: additionsi of +1.65Moz from cut-off grade
Slide 17: Other Nevada Gold Mines
Other Nevada Gold Mines… Phoenix Phoenix (61.5%)i Q4 2019 Q3 2019 Production in the fourth quarter of 2019 was 24% higher compared to the prior quarter, primarily due to a more Gold produced (oz 000) 31 25 optimized ore blend leading to better mill recoveries Cost of sales ($/oz)5 2,025 2,186 AISC p
Slide 18: Carlin Trend fresh approach identifies enormous areas of potential
Carlin Trend…fresh approach identifies enormous areas of potential Mineralization open at numerous locations along the most significant ore controlling fault corridor in Nevada Unified databases and models identify numerous target areas and large areas of concealed favourable host rocks that remain
Slide 19: Donlin Gold JV
Donlin Gold JV… USA 50:50 JV with Novagold One of the world’s largest undeveloped gold resources Focus in 2019: Updating geological model to improve confidence Updating resource model based on improved understanding Progressing permitting Focus in 2020: Drill program to validate resource model with
Slide 20: Hemlo
Hemlo… Ontario, Canada Potential to upgrade Hemlo to a Tier 2 asset24 Long Section Looking North Turnaround year in 2019 as operation modernized and refocused. Year on year: W E Black Fly Grade improved by 32% Production increased by 25% C-Zone Total cash costs6 and AISC6 decreased by 14% Moved to u
Slide 21: Pueblo Viejo
Pueblo Viejo… Dominican Republic A commendable production and cost performance Pueblo Viejo19 (60%) Q4 2019 Q3 2019 2019 2018 with a focus on efficiencies, contract reviews and Open pit tonnes mined (000) 5,729 5,817 24,732 24,063 cost control kept costs in line with plan Average grade processed (g/
Slide 22: Pueblo Viejo JV upside plant expansion
Pueblo Viejo JV upside…plant expansion to maintain production for the next 2 decades Expansion study Studies remain supportive of a plant expansion that could significantly improve throughput allowing the mine to maintain average annual gold production of 800 000oz (100%) after 2022 Revised flowshee
Slide 23: Veladero
Veladero… Argentina Production was 22% higher than the prior quarter, primarily due to higher ore grades and tonnages processed, partially offset by lower recoveries Veladero (50%) Q4 2019 Q3 2019 2019 2018 Average grade processed (g/t) 0.88 0.74 0.79 0.85 Accordingly, total cash costs per ounce6 de
Slide 24: Veladero Building a profitable future through geology, exploration and planning
Veladero… Building a profitable future through geology, exploration and planning Veladero upside Lama Process Amarillos Camp Penelope Departure from short term cash-flow planning Adds ore to plan previously modeled and defined Improved geology (Phase 1) + drilling Veladero Fabiana Constrained HG, pr
Slide 25: El Indio Belt prolific endowment and barely scratched surface
El Indio Belt…prolific endowment and barely scratched surface Pascua Over 40 years of discovery and development; +50Moz Lama Veladero Orebodies exposed / partly exposed Cover rocks mask hidden potential Unlock potential through integrated data analyses, institutional orebody knowledge and applicatio
Slide 26: LATAM opportunities for growth
LATAM…opportunities for growth 1 Salta Province 1 Dominican Republic Pueblo Viejo 4 Consolidating new district Veladero District Stepping beyond the PV JV Barrick Properties 5 Targeting through improved geological understanding Pueblo Viejo Amarillos Camp Lama Process Penelope 2 Lagunas Norte Fabian
Slide 27: Porgera
Porgera… Papua New Guinea Production in Q4 2019 was 9% higher than the Porgera (47.5%) Q4 2019 Q3 2019 2019 2018 prior quarter, primarily due to higher underground Total tonnes mined (000) 2,880 3,657 13,156 9,862 grade ore mined and processed Average grade processed (g/t) 3.94 3.33 3.44 3.46 Accord
Slide 28: Porgera Wangima upside and testing commence
Porgera…Wangima upside and testing commence Geology and structural modelling Potential for significant open pit Porgera Major Lodes and underground life of mine upside Current Pit Phased exploration program to Wangima target evaluate upside underway area Infrastructure, process and equipment upgrade
Slide 29: Loulo-Gounkoto
Loulo-Gounkoto… Mali Loulo-Gounkoto20,i (80%) Q4 2019 Q3 2019 2019 2018 2019 production of 572koz gold exceeded guidance of 520 to 570koz Total tonnes mined (000) 7,250 8,115 32,192 30,926 Production in Q4 2019 was 6% lower than the prior Average grade processed (g/t) 5.64 5.14 4.90 4.31 quarter mai
Slide 30: Yalea orebody drilling extends high grade at depth
Yalea orebody…drilling extends high grade at depth Transfer Zone 2019 Loulo-Gounkoto Total P&P Mineral Reserves grew by 343Koz net of depletion21 Step out drilling confirms extension of Yalea transfer zone system still open to the south and at depth system 320m south of the existing BM
Slide 31: Gounkoto permit Faraba complex shows potential for reserve addition
Gounkoto permit…Faraba complex shows potential for reserve addition Faraba North (OP) Gounkoto DDB defined with complete (OP & UG) remodel update underway. DDB potentially mineralized – Faraba Westi very poorly tested 6.10m @ 4.01g/t Expl. upside to north and south. 6.10m @ 3.83g/t 8.00m @ 4.41g/t 6
Slide 32: Kibali another record year of production
Kibali…another record year of production DRC Gold production of 366koz in 2019 was well above Kibali22,i (45%) Q4 2019 Q3 2019 2019 2018 the top-end of guidance of 350koz, despite a Total tonnes mined (000) 3,096 3,077 12,273 14,790 winder failure in the second quarter Total cash costs6 and AISC6 we
Slide 33: Kibali 2019 reserve replacement with future resource growth opportunities
Kibali 2019 reserve replacement with future resource growth opportunities… KCD Open Pit PB#3 & PB2 North 3000 Lode 2019 Proven reserve:1.6Mt @ 2.25g/t for 112koz Down plunge 2019 Probable reserve 3.2Mt @ 2.32g/t for 238koz Avg Drill Intersection: 10.62m @ 4.80g/t 9004 Lode Gap Avg drill intersection
Slide 34: Tanzanian Twiga joint venture
Tanzanian Twiga joint venture… takes partnership philosophy to a new level Agreement reached between Barrick and the government of Tanzania to settle all disputes with previously held Acacia operation Agreement ratifying the creation of Twiga Minerals Corporation, the management company jointly owne
Slide 35: North Mara back in production
North Mara…back in production Tanzania Production increased significantly quarter on quarter given North Mara (100%)23 Q4 2019 Q3 2019 2019 2018 the increase in attributable production to 100% (from 63.9%) following our acquisition of Acacia Mining Plc as well as the Total tonnes mined (000) 3,529 1
Slide 36: North Mara revised Gokona orebody model points to potential upside
North Mara…revised Gokona orebody model points to potential upside 100km of core relogged to deliver an updated Gokona geological model Shows mineralisation controlled by rheologic contrasts in broadly folded host stratigraphy Prospective stratigraphy ‘rolls’ over at ~600m depth. Previous drilling m
Slide 37: Bulyanhulu and Buzwagi
Bulyanhulu and Buzwagi… Tanzania Bulyanhulu Currently processing only tailings from the TSF, with Bulyanhulu (100%)23 Q4 2019 Q3 2019 2019 2018 sufficient material remaining to keep the plant running while the restart of the mine is being planned Gold produced (oz 000) 9 6 27 26 An integrated study
Slide 38: Tongon profitable operation in search of resource additions
Tongon…profitable operation in search of resource additions Côte d'Ivoire Gold production in Q4 2019 was in line Tongon (89.7%) Q4 2019 Q3 2019 2019 2018 with the third quarter Total tonnes mined (000) 5,251 6,086 23,036 16,668 Following the completion of resource Average grade processed (g/t) 2.56
Slide 39: Copper mines
Copper mines…. Lumwana, Zambia Lumwana (100%) Q4 2019 Q3 2019 2019 2018 Production of 238 mlb in 2019 was near the top-end of the guidance range of 210 to 240 mlb, while C1 cash costs7 of $1.79/lb were below guidance of Copper produced (lbs million) 63 65 238 224 $1.80/lb - $2.10/lb Cost of sales ($
Slide 40: Delivering value and replacing the gold we mine with improved grade
Delivering value and replacing the gold we mine with improved grade… Global Attributable Contained Gold Reserves (Moz)21, 25 Million 80 6.0 5.9 4.5 70 13.4 60 50 40 71 30 62 20 10 0 2018 Barrick Total Acquisition/Disposal Depletion (as at Change Gains Change Losses 2019 Barrick Total P&P Mineral yea
Slide 41: Delivering value and replacing the copper we've mined
Delivering value and replacing the copper we’ve mined… Global Attributable Contained Copper Reserves (Blb)21, 25 Billion 16 14 12 2,9 0,6 0,6 10 8 13,5 6 10,6 4 2 0 2018 Barrick Acquisition/Disposal Depletion (As of Year Change Gains Change Losses 2019 Attributable P&P Attributable P&P End) Mineral
Slide 42: Barrick's 5-year plan supported by six Tier 1 mines
Barrick’s 5-year plan…supported by six Tier 14 mines and a portfolio of world class opportunities Gold Production (Attributable), Koz Cost of Sales5, Total Cash Cost6 and Gold Capital Expendituresi (Attributable)11, $ million AISC6, $/oz 5,500 1,250 1,200 5,000 1,150 4,500 1,100 4,000 1,050 1,000 3,
Slide 43: Copper summary
Copper summary… 5-year copper production forecast Copper Production (Attributable), Mlbs Cost of Sales5, C1 Cash Cost7 and Copper Capital Expendituresi (Attributable)11, $ million AISC7, $/lb 550 3.0 500 450 400 2.5 350 300 2.0 250 200 150 1.5 100 50 0 0.0 2020 2021 2022 2023 2024 Jabal Sayid Zaldiv
Slide 44: Building the world's most valued gold company
Building the world’s most valued gold company… Indexed performance of gold against gold equities 200 +79% 180 Relative Share Price 160 +56% 140 +31% 120 100 80 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Gold US$ Spot Barrick GDX Index Source: Bloomberg Financial Markets. Market data as of January 27,
Slide 45: Q4 2019 annexures
Q4 2019 annexures... BARRICK
Slide 46: North America summary 5-year gold production forecast
North America summary… 5-year gold production forecast Gold Production (Attributable), Koz Cost of Sales5, Total Cash Cost6 and Gold Capital Expendituresi (Attributable)11, $ million AISC6, $/oz 3,000 1,250 1,200 1,150 2,500 1,100 1,050 2,000 1,000 950 1,500 900 850 800 1,000 750 700 500 650 600 0 0
Slide 47: LATAM and AsiaPac summary 5-year gold production forecast
LATAM and AsiaPac summary… 5-year gold production forecast Gold Production (Attributable), Koz Cost of Sales5, Total Cash Cost6 and Gold Capital Expendituresi (Attributable)11, $ million AISC6, $/oz 2,500 1,250 1,200 1,150 2,000 1,100 1,050 1,000 1,500 950 900 850 1,000 800 750 700 650 500 600 550 0
Slide 48: Africa and Middle East summary 5-year gold production forecast
Africa and Middle East summary… 5-year gold production forecast Gold Production (Attributable), Koz Cost of Sales5, Total Cash Cost6 and Gold Capital Expendituresi (Attributable)11, $ million AISC6, $/oz 2 500 1,250 1,200 1,150 2 000 1,100 1,050 1,000 1 500 950 900 850 1 000 800 750 500 700 650 600
Slide 49: Endnotes
Endnotes 1. Loss time injury frequency rate (LTIFR) is a ratio calculated as follows: number of loss time injuries x 1,000,000 hours divided by the total number of hours worked. 2. Total reportable incident frequency rate (TRIFR) is a ratio calculated as follows: number of reportable injuries x 1,00
Slide 50: Endnotes
Endnotes 7. “C1 cash costs” per pound and “All-in sustaining costs” per pound are non-GAAP financial performance measures. “C1 cash costs” per pound is based on cost of sales but excludes the impact of depreciation and royalties and includes treatment and refinement charges. “All-in sustaining costs
Slide 51: Endnotes
Endnotes 13. Synergies (or NPV of synergies) as used in this presentation is a management estimate provided for illustrative purposes, and should not be considered a GAAP/IFRS financial measure. "Synergies" represent management’s combined estimate of pre-tax synergies, supply chain efficiencies and
Slide 52: Endnotes
Endnotes 22. Barrick owns 45% of Kibali Goldmines SA (Kibali) with the Democratic Republic of Congo ("DRC") and our joint venture partner, AngloGold Ashanti, owning 10% and 45%, respectively. Kibali is accounted for as an equity method investment on the basis that the joint venture partners that hav
Slide 53: Appendix A – Carlin Complex Significant Intercepts Table
Appendix A – Carlin Complex Significant Intercepts Tablei Drill Results from Q4 2019 i. All intercepts calculated using a 3 g/t Au cutoff and are uncapped; minimum intercept width is 0.8 m; internal dilution is less than 20% Core Drill Hole Azimuth Dip Interval (m) Width (m)ii Au (g/t) total width F
Slide 54: Appendix B – Fourmile Significant Intercepts Table
Appendix B – Fourmile Significant Intercepts Tablei Drill Results from Q4 2019 Core Drill Holeii Azimuth Dip Interval (m) Width (m)iii Au (g/t) 1100.3 - 1103.3 3 6.2 i. All intercepts calculated using a 5 g/t Au cutoff and are uncapped; minimum intercept width is 0.8 m; internal 1148.0 - 1155.5 7.5
Slide 55: Appendix C – Carlin Trend Significant Intercepts Table
Appendix C – Carlin Trend Significant Intercepts Tablei Historic Drill Resultsii i. All intercepts calculated using a 5 g/t Au cutoff and are uncapped; minimum intercept width is 0.8 m; internal Core Drill Hole Azimuth Dip Interval (m) Width (m)iii Au (g/t) dilution is less than 20% total width 160.
Slide 56: Appendix D – Faraba West Significant Intercept Table
Appendix D – Faraba West Significant Intercept Tablei Historic Drill Results i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum Width intercept width is 2m; internal dilution is equal to or less than 2m total width. Lode Drill Holeii Azimuth Dip Interval (m) Au (g/t) ii
Slide 57: Appendix E – Kibali Significant Intercepts
Appendix E – Kibali Significant Interceptsi Drill Results from Q2 & Q4 2019 i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum intercept width is 2 m; internal dilution is equal to or less than 25% total width. Lode Drill Holeii Azimuth Dip Interval (m) Width (m)iii Au
Slide 58: Appendix E – Kibali Significant Intercepts
Appendix E – Kibali Significant Interceptsi Drill Results from Q2 & Q4 2019 i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum Width intercept width is 2 m; internal dilution is equal to or less than 25% total width. Lode Drill Holeii Azimuth Dip Interval (m) Au (g/t) (
Slide 59: Appendix E – Kibali Significant Intercepts
Appendix E – Kibali Significant Interceptsi Drill Results from Q2 & Q4 2019 Width All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum Lode Drill Holeii Azimuth Dip Interval (m) Au (g/t) i. (m)iii intercept width is 2 m; internal dilution is equal to or less than 25% total w
Slide 60: Appendix E – Kibali Significant Intercepts
Appendix E – Kibali Significant Interceptsi Drill Results from Q2 & Q4 2019 Width i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum Lode Drill Holeii Azimuth Dip Interval (m) Au (g/t) (m)iii intercept width is 2 m; internal dilution is equal to or less than 25% total w
Slide 61: Appendix E – Kibali Significant Intercepts
Appendix E – Kibali Significant Interceptsi Drill Results from Q2 & Q4 2019 Width i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum Lode Drill Holeii Azimuth Dip Interval (m) Au (g/t) (m)iii intercept width is 2 m; internal dilution is equal to or less than 25% total w
Slide 62: Appendix F – Five Year Outlook
Appendix F – Five Year Outlook Key assumptions 2020 2021 + Gold Price ($/oz) 1,350 1,200 Copper Price (US$/lb) 2.75 2.75 Oil Price (WTI) ($/barrel) 65 65 AUD Exchange Rate (AUD:USD) 0.70 0.75 ARS Exchange Rate (USD:ARS) 65.00 75.00 CAD Exchange Rate (USD:CAD) 1.30 1.30 CLP Exchange Rate (USD:CLP) 72