Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — BAML Global Metals, Mining and Steel Conference 2017
33 slides from Barrick Mining's conference presentation, May 16, 2017
Slide 1: Partnership Culture in Action
Barrick Gold Corporation Partnership Culture in Action BAML Global Metals, Mining and Steel Conference | Barcelona May 16, 2017 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 constitutes “forward-looking statements”. All statements, other than statements of histor
Slide 3: 2017 Priorities
2017 Priorities $ $ Maximize Disciplined Balance Operational Talent Free Cash Investment Sheet Excellence Development Flow Optimize Reduce total Unify Nevada, Upgrade talent Generate portfolio, debt to $5 embed and and develop free cash flow progress billion by end accelerate next generation at $1,0
Slide 4: 2017 Priorities
2017 Priorities $ $ Maximize Disciplined Balance Operational Talent Free Cash Investment Sheet Excellence Development Flow Optimize Reduce total Unify Nevada, Upgrade talent Generate portfolio, debt to $5 embed and and develop free cash flow progress billion by end accelerate next generation at $1,0
Slide 5: Targeting Cash Flow Breakeven at $1,000
Targeting Cash Flow Breakeven at $1,000 Operating Cash Flow and Gold Production Free Cash Flow1 ($B) (million ounces) 2.6 2.3 6.2 6.1 2.22 5.3- 5.5 5.63 1.5 0.52 495 161 1.3 -0.1 2014 2015 2016 Q1 2017 2014 2015 2016 Q1 2017 1. This is a non-GAAP financial performance measure with no standardized me
Slide 6: 2017 Guidance
2017 Guidance1 Current Guidance Initial Guidance (April 2017) (February 2017) Gold Production (koz) 5,300-5,600 5,600-5,900 Gold Cost of Sales ($/oz) 780-820 780-820 Gold Cash Costs2 ($/oz) 510-535 510-535 Gold AISC2 ($/oz) 720-770 720-770 Capital Expenditures ($M) 1,300-1,500 1,300-1,500 Gold pro
Slide 7: 2017 Priorities
2017 Priorities $ $ Maximize Disciplined Balance Operational Talent Free Cash Investment Sheet Excellence Development Flow Optimize Reduce total Unify Nevada, Upgrade talent Generate portfolio, debt to $5 embed and and develop free cash flow progress billion by end accelerate next generation at $1,0
Slide 8: Barrick Exploration Strategy
Barrick Exploration Strategy Superior portfolio of long life production assets Deep project pipeline – Some of the largest undeveloped projects in the sector A track record of generating organic value from exploration Partnerships Exploration Drilling in Nevada 8
Slide 9: Strong Track Record of Organic Value Generation through Exploration
Strong Track Record of Organic Value Generation Reserves (Moz of gold) Near Mine and New Discoveries Spent $3.6B on exploration Goldstrike Overall finding cost 143 ~861 2Bt @ Cortez ~$25/oz 1.33g/t through exploration Donlin Gold 20 Pascua-Lama Total found 1990 2016 Veladero 110 Pueblo Viejo 31
Slide 10: Organic Projects
Organic Projects Lagunas Norte Turquoise Ridge Cortez Hills Refractory Ore Mine Goldrush Expansion Deep South Life Extension Phased approach to Phase I: CIL/milling Underground orebody Expansion of the Cortez additional production southeast of Cortez Hills Hills underground mine Phase II:
Slide 11: Strategic Partnerships
Strategic Partnerships Requires redesign Strategic Cooperation Agreement with Shandong 1. Sale of 50 percent of Veladero for $960 million to Shandong Gold 2. Joint working group to explore the development of Pascua-Lama 3. Evaluating additional investment opportunities Veladero Open Pit on the highl
Slide 12: Pascua-Lama – Phased Development
Pascua‐Lama – Phased Development Lama – Argentina Lama process looking east Initiated pre-feasibility study for UG in 2017 Evaluating sub-level and block caving methods Initial ore processing capacity of 15K tpd Permitting could begin in 2018 Staged development to include Pascua Pascua – C
Slide 13: El Indio (Frontera) District – Investment and Growth
El Indio (Frontera) District – Investment and Growth Alturas Pascua-Lama Veladero Barrick Claims Chile Argentina A significant greenfield discovery in El Indio Tambo El Indio belt Camp – Surface oxide Au-Ag deposit (similar to Veladero) Alturas Del Carmen – Inferred resource of 6.8Moz1 @ 1.0g/t Au
Slide 14: Strategic Partnerships
Strategic Partnerships Cerro Casale, Chile with Goldcorp Orion Project, Yukon with ATAC Kan Project, Quebec with Osisko Arakaka Project, Guyana with Alicanto 14
Slide 15: Superior Portfolio Optionality
Superior Portfolio Optionality Prefeasibility Early Stage Exploration Conceptual Scoping / Feasibility Execution T. Ridge Footwall Goldstrike Donlin Gold Cortez District Cortez Deep South Cortez Crossroads Pond High Grade Meikle Halo Lewis High Grade Pueblo Viejo Pueblo Viejo Cortez Hills El Indio D
Slide 16: 2017 Priorities
2017 Priorities $ $ Maximize Disciplined Balance Operational Talent Free Cash Investment Sheet Excellence Development Flow Optimize Reduce total Unify Nevada, Upgrade talent Generate portfolio, debt to $5 embed and and develop free cash flow progress billion by end accelerate next generation at $1,0
Slide 17: Focus on Debt Reduction
Focus on Debt Reduction Further reduced debt by Total Debt ($ B) $178M in Q1 2017 13.08 Sale of 50% of Veladero will Reduction help achieve debt reduction 9.97 2.04 in target Q1 2017 7.93 0.18 7.75 Target debt reduction: Target $1.45B in 2017 5.00 Target total debt: $5B by end of 2018 YE YE
Slide 18: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility Near and medium term liquidity improved – Less than $100M2 of debt due before 2019 – $2.3B cash and equivalents1 – $4B undrawn credit facility Average coupon of 5.5% with an average maturity of 17 years4 5,000 – Over 60% of debt due post 2032 4,000 3,000 Cu
Slide 19: 2017 Priorities
2017 Priorities $ $ Maximize Disciplined Balance Operational Talent Free Cash Investment Sheet Excellence Development Flow Optimize Reduce total Unify Nevada, Upgrade talent Generate portfolio, debt to $5 embed and and develop free cash flow progress billion by end accelerate next generation at $1,0
Slide 20: Digital Barrick Nevada
Digital Barrick Nevada Digital Barrick Initiatives 1. UG Short Interval Control 2. UG Automation 3. Digital Maintenance Work Management 4. Digital Processing 5. Predictive Maintenance 6. Consolidated Data Platform 7. Mining Operations Center 8. Integrated Planning 20
Slide 21: Barrick Nevada
Barrick Nevada Unify Goldstrike and Cortez operations in Nevada Maximize the extraordinary strengths and opportunities of Nevada Single metal plan Value engineering to optimize capital deployment Mobilizing talent to enable knowledge transfer Optimize blasting schedules through enhanced
Slide 22: Sustainability Priorities for 2017
Sustainability Priorities for 2017 License to Water Energy and Meaningful Operate Management Climate Change Partnerships Improved community Water management Continued roll-out of CSR Advisory Board engagement strategy roll-out 5-Year Energy Plan One Laptop Per Child Better access to Re
Slide 23: Veladero Update
Veladero Update On March 28, 2017, a coupling on a pipe failed – Solution released from the rupture contained within the operating site Remediation plan submitted to authorities Planned modifications to the heap leach facility expected during May with processing activities resuming in June, su
Slide 24: 2017 Priorities
2017 Priorities $ $ Maximize Disciplined Balance Operational Talent Free Cash Investment Sheet Excellence Development Flow Optimize Reduce total Unify Nevada, Upgrade talent Generate portfolio, debt to $5 embed and and develop free cash flow progress billion by end accelerate next generation at $1,0
Slide 25: Talent Development
Talent Development Leadership training Upgrade talent and develop the next generation of leaders 25
Slide 26: Focusing on the Best Assets and Regions
Focusing on the Best Assets and Regions Cortez Golden Hemlo Turquoise Ridge Sunlight Cortez Goldstrike Goldstrike Pueblo Viejo Expecting 70% of 2017 production Pueblo Viejo Lagunas from core mines at Norte Cost of Sales of $770-810/oz and AISC1 of Lagunas Norte Zaldívar JV $650-710/oz Veladero Velad
Slide 27: Technical Information and Endnotes
Technical Information The following qualified persons, as that term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects, have reviewed and approved the relevant scientific and technical information contained in this presentation: Rob Krcmarov, Executive Vice Presi
Slide 28: Appendix A
APPENDIX A 1 "Free cash flow" (also referred to as “FCF”) is a non-GAAP financial performance measure which excludes capital expenditures from net cash provided by operating activities. Barrick believes this to be a useful indicator of our ability to operate without reliance on additional borrowing
Slide 29: Reconciliation of Gold Cost of Sales to Cash Costs, AISC and All-in Costs
Reconciliation of Gold Cost of Sales to Cash costs, All-in sustaining costs and All-in costs, including on a per ounce basis ($ millions, except per ounce information in dollars) For the three months ended March 31 Footnote 2017 2016 Cost of sales related to gold production $ 1,238 $ 1,202 Depreciat
Slide 30: Exploration and evaluation costs
6 Exploration and evaluation costs Exploration, evaluation and project expenses are presented as minesite sustaining if it supports current mine operations and project if it relates to future projects. Refer to page 25 of the First Quarter 2017 MD&A. 7 Capital expenditures Capital expenditures are r
Slide 31: Reconciliation of Gold Cost of Sales by Operating Segment, 2017
Reconciliation of Gold Cost of Sales to Cash costs, All-in sustaining costs and All-in costs, including on a per ounce basis, by operating segment ($ millions, except per ounce information in dollars) For the three months ended March 31, 2017 Barrick Pueblo Lagunas Turquoise Footnote Nevada Viejo No
Slide 32: Reconciliation by Operating Segment, 2016
($ millions, except per ounce information in dollars) For the three months ended March 31, 2016 Barrick Pueblo Lagunas Turquoise Footnote Nevada Viejo Norte Veladero Ridge Acacia Cost of sales related to gold production $ 464 $ 167 $ 68 $ 105 $ 35 $ 169 Depreciation (198) (43) (28) (25) (6) (36) By-
Slide 33: Rehabilitation - accretion and amortization
6 Rehabilitation - accretion and amortization Includes depreciation on the assets related to rehabilitation provisions of our gold operations and accretion on the rehabilitation provision of our gold operations, split between operating and non-operating sites. 7 Cost of sales per ounce Cost of sales
Barrick Gold — BAML Global Metals, Mining and Steel Conference 2017 on 6ix