Slide 1: Mali: Impact of the gold price on exploration and production
Mali Impact of the gold price on exploration and production JMP Conference November 2019 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 Barrick’s strategy, plans, or future financial or operating performance, constitutes “forward- looking statements”. All statements, other than statements of histori
Slide 3: The leading African gold miner…
The leading African gold miner… Jabal Sayid (50%) Loulo-Gounkoto (80%) Morila (40%) Massawa (83.25%) Kibali (45%) Tongon (89.7%) North Marai Lumwana Bulyanhului Buzwagii Gold production Projects Barrick Tanzania Copper production
Slide 4: West Africa…two decades of delivery
West Africa…two decades of delivery 2012 2013 2014 2015 2016 2017 Record production Loulo Complex Production +1.2Moz +1.25Moz Gounkoto Morila mine life record exceeds 1Moz group group super pit extended production LTIFR down 18% production production starts 2011 2019 Randgold – Barrick Gounkoto merg
Slide 5: Mali Gold Production…
Mali Gold Production… Ounces 000 2000 Somifi - SA Finkolo 1800 Somika - SA Endeavour 1600 AngloGold Ashanti Yatela - SA 1400 Faboula Gold - SA Wassalou Nampala - SA Robex 1200 Metedia - SARL Metedia 1000 Morila - SA1 Barrick 800 Komana - SA Hummingbird 600 Semico - SA BCM Semos - SA AngloGold Ashant
Slide 6: Legacy Randgold production profile from 1998 vs Gold Price…
Legacy Randgold production profile1 from 1998 vs Gold Price… Million ounces US$/oz 1,4 1800 1600 1,2 1400 1 1200 0,8 1000 0,6 800 600 0,4 400 0,2 200 0 0
Slide 7: Loulo-Gounkoto complex… actual and forecast production
Loulo-Gounkoto complex… actual and forecast production Production Oz 000 800 2 700 600 500 400 1 300 200 100 0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Oz actual Oz forecast
Slide 8: The World… in CRISIS? or ON THE MEND?
The World… in CRISIS? or ON THE MEND? BREXIT and European populism – illegal The Russian Bear Trump and nationalism – immigration illegal immigration Middle East conflict China – a new and emerging new world player Saudi Arabia Korean crisis The Arab Spring countries’ dilemma Religious extremism Glo
Slide 9: The Mining Sector Cycle…
The Mining Sector Cycle… Source: Scotia, Global Banking and Markets
Slide 10: Worldwide exploration budgets by country…
Worldwide exploration budgets by country… The largest portion of available exploration funds are now being spent in South America (30%) and North America (28%) with only 14% allocated to Africa (6% to West Africa and 2% in the DRC) 1535 companies’ budgets totalling US$7.05 billion 88 other countries
Slide 11: African exploration budgets by stage of development…2008 to 2017
African exploration budgets by stage of development…2008 to 2017 African exploration budgets followed the global trend Greenfields exploration is now lower than Late Stage and Minesite exploration as mining companies attempt to preserve their cash resources Africa US$ million No. of Companies 1600 4
Slide 12: Exploration is not replacing gold produced
Exploration is not replacing gold produced - running average gold in discoveries & exploration budgets by year…1995 - 2017 Despite significant exploration expenditure during the period from 2010 to 2012, real discoveries have declined since 2009, severely impacting future gold production Major gold
Slide 13: Why no growth in gold production?
Why no growth in gold production?… is the industry reserve being plundered? Reserve grade vs mining head grade Gold grade g/t 3,5 3,0 Reserve Grade Head Grade 2,5 2,0 1,5 1,0 0,5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Scotia Bank
Slide 14: Reserves by major gold companies have declined 26% since 2012
Reserves by major gold companies have declined 26% since 2012 – now below 2007 levels Moz Au 1000 959 967 898 900 860 830 849 818 800 766 744 700 713 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Agnico Eagle, AngloGold Ashanti, Barrick, China National, Freepor
Slide 15: Global gold mine supply…2019 - 2029
Global gold mine supply…2019 - 2029 Industry facing production precipice Very few companies able to deliver value growth in this environment Moz 80 70 60 50 40 30 20 10 - 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Production Committed Probable Possible Concept Others Source: AME Research
Slide 16: Examples of how mining industry is a springboard for country's development…
Examples of how mining industry is a springboard for country’s development… …mining can play a critical role Services Manufactur- Natural International ing Resources Support Tourism Traditional industries Economic Diversification Benefication Private Sector Regional Integration Infrastructure Govern
Slide 17: Loulo-Gounkoto community development…
Loulo-Gounkoto community development… >$6.4m invested to date; $29.6m patent levy invested in communities Health 10% Education Economic 18% Projects 50% Potable Water 7% Agriculture 15% 17
Slide 18: Barrick...contribution to Mali economy
Barrick...contribution to Mali economy Barrick/Randgold operations have contributed approximately US$ 7.0 billion to the Malian economy in the form of taxes, royalties, salaries and payments to local suppliers in the 23 last years Contribution to Malian % Contribution to Malian GDP Economy 10% LOULO
Slide 19: Barrick…Dividends, Taxes and Royalties paid to Mali
Barrick…Dividends, Taxes and Royalties paid to Mali Barrick/Randgold operated mines have paid approximately US$ 2.7 billion in the form of Dividends, Taxes and Royalties to the State over 23 years DIVIDENDS TO DIVIDENDS, TAXES BARRICK AND ROYALTIES TO US$ 1.0 billion THE STATE US$ 2.7 billion
Slide 20: Endnotes…
Endnotes… 1. At 100%. 2. AME Research category definitions: Production – A site which is in commercial operation. Committed – AME believes these projects will come online by their planned start date with the highest degree of probability. In AME's assessment, this category contains projects that are