Slide 1: Welcome to Goldstrike
October 7, 2002 Welcome to Goldstrike 1
Slide 2: History
Autoclave Betze-Post Roaster Rodeo Meikle History • Purchased property in 1986 • Oxide heap-leach operation • $62 million viewed as excessive • Barrick’s position: – Double the reserves – High-grade ore potential – Autoclave experience at Mercur 2
Slide 3: Contribution to Barrick
Contribution to Barrick • Employ 1,700 highly trained and skilled mining professionals • 14,000 direct and indirect jobs • $11 million to communities, schools and charities Reserves and Production 2001 Reserves: 20.4 million ounces 2.5 Production 2 1.5 21.6 million ounces 1 0.5 0 '87 '00 '01 '02E 3
Slide 4: Low Costs
Low Costs 2002E Cash Costs per Ounce $350 $300 $250 $217 $200 $150 $100 $50 $- '87 '01 '02E Current Status • Two high grade mines • World-Class processing facilities • Solid base of employees 4
Slide 5: Historical Performance
Historical Performance Manpower % Diff. 1995 1998 1999 2000 2001 98-2001 Surface Open Pit 911 846 800 684 629 -26% Autoclave 386 348 341 340 313 -10% Roaster 3 75 118 131 Other 251 249 200 191 200 -20% Subtotal 1,548 1,446 1,416 1,333 1,273 -12% Underground 66 279 340 468 453 62% Total 1,614 1,725 1
Slide 6: Historical Performance
Historical Performance Unit Operating Costs Mining $/ton mined 1998 1999 2000 2001 2002E Open Pit .91 .84 .89 .83 .77 Underground 44.99 39.46 38.12 43.07 48.33 Process $/ton milled Autoclave 20.36 20.31 20.30 19.18 18.18 Roaster - - 12.46 13.10 11.76 Historical Performance Category of Spend ($millio
Slide 7: Historical Performance
Historical Performance Capital Spending ($millions) 1998 1999 2000 2001 2002E Surface 68 272 117 32 13 Underground 46 21 90 90 35 Outlook Increase Reserves and Production • Improve recovery rates • Increase throughput • Continue underground exploration • District Development Program – Use Goldstrike
Slide 8: Outlook
Outlook Lower Costs • Open pit • Underground • Processing Outlook Cash Flow (millions of dollars) 20011 2002E2 Revenue $823 $691 Costs (473) (440) Stripping Amortization 146 111 Deferred Stripping (129) (103) Capital (122) (48) Free cash flow $245 $211 1100% sold at $340oz. 250% production at $365oz
Slide 9: Reserves and Exploration
Reserves and Exploration Reserves and Exploration 2001 Reserves Contained Tons Grade ounces (000’s) (oz/ton) (000’s) Betze-Post 108,854 0.151 16,433 Meikle 8,992 0.439 3,946 Total 117,846 20,379 9
Slide 10: Reserves and Exploration
Reserves and Exploration Reserve Growth (millions of ounces) 50 43.6 40 30 20 10 0 '87 '00 '01 Reserves and Exploration District Development Program • High chance of new discovery • Rapid development • Most profitable 10
Slide 11: Reserves and Exploration
Reserves and Exploration District Development Program • Exploration close to known ore bodies and new opportunities within the district • Acquire adjacent properties – Rossi – Dee – REN ROSSI STORM North DEE REN Carlin BOOTSTRAP/ CAPSTONE Trend MEIKLE TARA RODEO GOLDSTRIKE BETZE-POST DEEPSTAR GENESI
Slide 12: Reserves and Exploration
Reserves and Exploration 2002 Exploration Program (millions) Goldstrike Underground - $1.1 • 26 Drill Holes, 22,000 Feet • Completed Goldstrike Surface - $2.9 • 15 Drill Holes, 34,000 Feet • Completed Dee/Rossi - $2.8 • 15 Drill Holes, 50,000 Feet • 6 Completed REN - Barrick Share $1.1 • 15 Drill Ho
Slide 13: Reserves and Exploration
Reserves and Exploration Distributed ArrayTARA MEIKLE Survey RODEO BETZE-POST GENESIS/ BLUESTAR Reserves and Exploration BANSHEE TARA MEIKLE SOB EAST OF HILL POST FAULT RODEO GOLDEN NORTH APRIL SCREAMER WEST SCREAMER BETZE-POST SIPHON SKARN FAULT HILL GENESIS/ BLUESTAR 13
Slide 14: North Carlin Trend
ROSSI STORM North DEE REN Carlin BOOTSTRAP/ CAPSTONE Trend MEIKLE TARA RODEO GOLDSTRIKE BETZE-POST DEEPSTAR GENESIS/ BLUESTAR 5000 FEET LEEVILLE CARLIN Open-Pit Mining 14
Slide 15: Open-Pit Mining
Open-Pit Mining 8000’ 8000’ 7500’ 7500’ 1000’ 1000’ Open-Pit Mining (000’s) 1999 2000 2001 2002E Tons mined 155,010 143,205 154,233 146,887 Tons per day 434 401 433 413 Tons of ore 4,809 11,110 17,412 13,208 Grade oz/ton 0.23 0.21 0.15 0.14 Tons waste 150,201 132,095 136,821 133,679 15
Slide 16: Open-Pit Mining
Open-Pit Mining 14.6 million oz. Open-Pit Mining 14.6 million oz. 16
Slide 17: Open-Pit Mining
Open-Pit Mining 2 SE – December 2001 Open-Pit Mining 7 W – February 2002 17
Slide 18: Open-Pit Mining
Open-Pit Mining NE – December 2002 Open-Pit Mining 8 W – December 2004 18
Slide 19: Open-Pit Mining
Open-Pit Mining 9 W – December 2005 Open-Pit Mining 10 W – April 2007 19
Slide 20: Open-Pit Mining
Open-Pit Mining 11 W – October 2008 Open-Pit Mining 12 W – May 2010 20
Slide 21: Open-Pit Mining
Open-Pit Mining 2001 Costs ($215 per oz.) Mining $94 Processing $94 Administration $19 Royalties & Production taxes $8 Open-Pit Mining 2002E Costs ($226 per oz.) Mining $92 Processing $113 Administration $15 Royalties & Production taxes $6 21
Slide 22: Open-Pit Mining
Open-Pit Mining 2001 Mining Costs Functional basis - $0.83 per ton Hauling 37¢ Roads & Dumps 12¢ Loading 11¢ Engineering 11¢ Drill & Blast 12¢ Open-Pit Mining 2002E Mining Costs Functional basis - $0.77 per ton Hauling 32¢ Roads & Dumps 12¢ Loading 12¢ Engineering 10¢ Drill & Blast 11¢ 22
Slide 23: Open-Pit Mining
Open-Pit Mining Unit Mining Costs Tons Mined Per Manshift (thousands) 260 $1.20 $1.18 249 $1.15 245 $1.11 $1.10 $1.01 211 220 $1.00 190 $1.02 181 194 $0.94 $0.90 180 165 $0.83 $0.80 $0.70 140 1996 1997 1998 1999 2000 2001 2002E Open-Pit Mining Reducing costs / Improving productivity • Increase emplo
Slide 24: Underground Mining
Underground Mining roaster roaster Rodeo Meikle Underground Mining roaster roaster Rodeo Meikle 24
Slide 25: Underground Mining
Underground Mining roaster roaster Rodeo Meikle Underground Mining 1999 2000 2001 2002E Tons hoisted 997,785 1,256,602 1,372,431 1,663,413 Tons per day 2,734 3,433 3,770 4,557 Grade oz/ton 1.071 0.724 0.561 0.430 25
Slide 26: Underground Mining
Underground Mining Rodeo Development • Initial production – Q4 2001 • 95% open stopes • 5% cut and fill Underground Mining Meikle headframe Meikle 26
Slide 27: Underground Mining
Underground Mining Underground Mining Roaster Rodeo 27
Slide 28: Underground Mining
Underground Mining 2001 Costs ($147 per oz.) Administration $11 Mining $90 Royalties & Production Taxes $14 Processing $32 Underground Mining 2002E Costs ($197 per oz.) Administration $26 Mining $123 Royalties & Production Taxes $13 Processing $35 28
Slide 29: Underground Mining
Underground Mining 2001 Mining Costs Functional basis - $43.07 per ton Engineering / Overhead $2.40 Hoisting $0.68 Drill, Blast and Ground support $9.01 Mining Activities $30.98 Underground Mining 2002E Mining Costs Functional basis - $48.33 per ton Engineering / Overhead $4.81 Hoisting $1.13 Drill,
Slide 30: Underground Mining
Underground Mining Unit Mining Costs $55 $50 $48.33 $46.60 $44.98 $45 $43.06 $43.07 $41.00 $40 $35.53 $35 1996 1997 1998 1999 2000 2001 2002E Underground Mining Reducing Costs / Improving Productivity • Increase employee involvement • Improve mining methods - Mining recovery rates - Lower dilution -
Slide 31: Underground Mining
Underground Mining 2002 Variances • Inadequate Planning - 2001 Revision to Reserves - Revision to development plans - Cost Overruns Underground Mining 2002 Variances • 2001 Revised Reserves - More accurate projection of tons & grades - First principles mine planning - Closer scrutiny of remnant stop
Slide 32: Underground Mining
Underground Mining 2002 Variances • Revision to Development plans - Previously did not recognize ground conditions in Meikle Main zone, Extension and South Meikle Underground Mining 2002 Variances • Revision to Development plans – Upside in Rodeo • Grade as predicted • Faster ramp-up – Re-forecasted
Slide 33: Underground Mining
Underground Mining 2002 Variances • Cost Overruns – Much higher cemented fill requirements – Higher binder content (9% vs. 5%) – Delays in implementing new shotcrete supply contract Underground Mining Improvement Projects • Productivities – Development ($29.8 MM) • Screenless development - First pha
Slide 34: Underground Mining
Underground Mining Improvement Projects Backfill Cost Reduction – Binder (~$3.8 MM) • Renegotiated Cement contract September 02 • Possible alternate Fly ash suppliers • Change in mix from 60:40 to 50:50 • Reduction in overall binder content – Aggregate (~$2.6 MM) • Cheaper aggregate in place since M
Slide 35: Processing
Processing 2001 Reserves by Process Betze-Post* Tonnage OPT** Ounces Autoclave 27,549 0.209 5,760 Roaster 45,433 0.151 6,680 Stockpiles 35,872 0.105 3,777 Sub-Total 108,854 0.151 16,433 Underground Division Autoclave 2,251 0.507 1,141 Roaster 6,740 0.416 2,804 Sub-Total 8,991 0.439 3,945 Total 117,8
Slide 36: Processing
Processing 2002E Processing Costs Functional basis $ per ton Autoclave Roaster Autoclaving / Roasting 12.10 3.80 Crushing / Grinding 2.79 4.38 C.I.L. / Tailing 3.29 3.58 $18.18 $11.76 Average $15.13 Processing 2002 Estimated Throughput Tons per Day Autoclave Roaster Total Betze-Post 15,993 12,082 28
Slide 37: Processing
Processing Reducing Costs / Improving Productivity • Employee involvement in CI initiatives and safety programs • Synergies with roaster/autoclaves and continued focus on recovery improvements in both areas • Throughput CI initiatives at both autoclave and roaster facilities • Optimize reagent consu
Slide 38: Forward Looking Statement
Forward Looking Statement Certain statements included herein, including those regarding production, costs and earnings, constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such Forward-looking statements involve known and