Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Investor Day (March 2018)
39 slides from Barrick Mining's investor day presentation, Mar 5, 2018
Slide 1: Investor Tour Veladero 2018
Bienvenidos Investor Tour Veladero 2018 Y MINERA ANDINA DEL SOL
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 Barrick Gold Corporation’s (“Barrick”) and the Veladero mine’s strategy, projects, plans or future financial or operating performance c
Slide 3: Albardón Agenda
Albardón Agenda March 5, 2018 Agenda Item Marcelo Campos iROC: Integrated Remote Operations Centre Tour Pei Dianfei SHANDONG GOLD GROUP: Presentation Video Barrick’s Veladero Investor Day Video Jorge Esteva MINERA ANDINA DEL SOL: License to Operate Jim Whittaker MINERA ANDINA DEL SOL: Operational Up
Slide 4: Mr. Pei Dianfei, Shandong Gold Group
SHANDONG GOLD GROUP Mr. Pei Dianfei • SDG Group Deputy GM & Overseas Mining Group President • Minera Andina del Sol JV Board President
Slide 5: Working together to create value
Working together , to create value
Slide 6: Veladero business plan strategy
STRATEGY The Veladero business plan relies on a strategy based on safety, environmental and social compliance, maximizing free cash flow and supporting growth projects
Slide 7: Mission. Vision. Values.
MISSION. VISION. VALUES.
Slide 8: Mission and Vision
MISSION “Being an innovative leading resource management company on the world stage based in San Juan. All areas of the organization work together to create value, opportunities and prosperity for our owners, people and host communities” VISION “Working to make Argentine mining great”
Slide 9: Values
VALUES TALENT INTEGRITY OWNERSHIP OPERATIONAL EXCELLENCE SAFETY AND ENVIRONMENTAL STEWARDSHIP RESPECT MUTUAL BENEFITS PROSPERITY
Slide 10: License to Operate
LICENSE TO OPERATE .
Slide 11: San Juan Economy
SAN JUAN ECONOMY GDP Growth: Province of San Juan vs Argentina San Juan Export Growth Base Year: 1993 US$ million 2,290 211 SOURCE: UTN Report on Mining in San Juan, INDEC Year
Slide 12: Fraser Institute: San Juan
FRASER INSTITUTE: SAN JUAN Investment Attractiveness Index - Argentina, Latin America and the Caribbean Basin Annual Survey of Mining Companies, Fraser Institute, 2017 SOURCE: Fraser Institute
Slide 13: Poll – Importance of Mining Activity
POLL¹ – IMPORTANCE OF MINING ACTIVITY In your opinion, how important is mining activity for San Juan? TOTAL POSITIVE: 70% TOTAL NEGATIVE: 23% Highly Quite Less Not Does not important important important important know ¹600 participants in an informal poll conducted by Minera Andina del Sol as of Jan
Slide 14: Poll – Minera Andina del Sol
POLL¹ – MINERA ANDINA DEL SOL What is your level of agreement with the next sentence? "Minera Andina del Sol ... Totally Totally agree disagree …tendrá un impacto positivo en la economía de la …Will have a positive impact on the 50% 21% 8% 13% 8% Province’s economy provincia 71% 21% …Will respect lo
Slide 15: Operations Review
OPERATIONS REVIEW January 2018 ‐ Total base: 600 casesz
Slide 16: 2017: Key Operational Improvements
2017: KEY OPERATIONAL IMPROVEMENTS Environment Improvements Improved Valley Leach Containment • Leach pad catch berms, solution containment, piping and pump system protection, improved distribution Snow Melt Protection • Road crossings, additional containment, additional pump critical spares and new
Slide 17: Focus on Environmental Protection
FOCUS ON ENVIRONMENTAL PROTECTION
Slide 18: Safety & Health
SAFETY & HEALTH Achieve a Lower TRIFR¹ • Total reportable injury frequency rate of 0.26 in 2017 – all time site record • Schedule inspections of tools and equipment Controls for Fatal Risks • Generate a checklist of instructions to verify the implementation of those controls • Perform routine intern
Slide 19: Environment
ENVIRONMENT Recertification in the International Cyanide Code • Expect to achieve recertification in March 2018 0.28 Meta de Migration to ISO:14001 (2015) TRIFR para • Expect to achieve recertification of the standard 2018 • Successfully migrate to an updated version in June 2018
Slide 20: 2018 Outlook
2018 OUTLOOK 2018 Guidance¹ (100% Basis) Gold Production 550-660 Koz2 Cost of Sales $970-1,110/oz Cash Costs3 $560-620/oz AISC3 $960-1,100/oz 2017 Gold Reserves4,5 (100% Basis) Proven 660 Koz (0.72 g/t, 28.4M tonnes) Probable 4.97 Moz (0.78 g/t, 199.4M tonnes) 1. See Endnote #1 2. On a 50% attributa
Slide 21: 2018 Outlook (Continued)
2018 OUTLOOK (CONTINUED) Financial: • Inventory extraction from Leach Pad • Cost reduction and contractor efficiencies Mining Productivity: • Improve equipment utilization and availability to improve operational costs Process Plant: • Improve pressure and flow capacity of leach pad Operational: • Op
Slide 22: 2018 Optimization Initiatives
2018 OPTIMIZATION INITIATIVES INITIATIVE DESCRIPTION TARGET 1 Increase pressure and flow capacity of leach Increase pad for a targeted 60% improvement Irrigation Rates 16 l/m2/hr Stack material at lower levels Leach side slopes of pad to drawdown leach 2 Side Slope Leach & Leach inventory ~35
Slide 23: Operational KPIs
OPERATIONAL KPIs EQUIPMENT AVAILABILITY (%) UTILIZATION (%) PRODUCTIVITY 2018 KPI Drillers 71% 71% 69% 78% 63% 60% 30 24 20 Difference > 5% Loaders 75% 77% 76% 79% 1,400 1,161 1,196 Difference > 3% and < 5% 56% 53% Difference < 3% 2,836 2,286 2,345 Shovels 70% 71% 70% 80% 75% 70% Trucks 84% 82% 81%
Slide 24: Growth Potential
GROWTH POTENTIAL Strategic Potential • Energy from Chile to reduce overall power cost: • Utilize Barrick’s existing infrastructure in Chile to deliver energy to Veladero Veladero OP • Reduce dependency on diesel generated energy • Potential to convert additional resources to reserves Growth Potentia
Slide 25: Cuatro Esquinas
CUATRO ESQUINAS¹ Growth Potential • The main focus is the improvement of Cuatro Esquinas to potentially include this zone in future reserves; Minex has identified resources that could extend the LOM Highlights • Minex program includes 3 DDH with 1,025 meters and 2 RC with 735 meters ranging 1.6 - 4.
Slide 26: Pecos - Brujas - Coiron
PECOS - BRUJAS - COIRON Pecos-Brujas and Coiron are located 8 Km SE of Veladero mine, 3 km SE of Argenta and 4 km east of the Argentina- F Chile frontier VELADERO Fabiana Growth Potential • Growth opportunities in the Pecos – Brujas target that includes drill testing for 2018 • The Coiron program wi
Slide 27: A Stable Future
A STABLE FUTURE • Veladero is now a JV • Business plan relies on a • Maximize available benefit between Barrick and strategy based on clear through improved energy Shandong and has priorities of safety, management and rebranded itself as Minera environmental protection, leveraging off of digitally-
Slide 28: Questions?
Questions?
Slide 29: Thank You
“ Thank You
Slide 30: Appendix A: Note
APPENDIX A NOTE 1 “Cash costs” per ounce and “All-in sustaining costs” per ounce are non-GAAP financial performance measures. “Cash costs” per ounce starts with cost of sales applicable to gold production, but excludes the impact of depreciation, the non-controlling interest of cost of sales, and in
Slide 31: Reconciliation of Gold Cost of Sales to Cash Costs and AISC
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 year ended December 31 Footnote 2017 2016 2015 Cost of sales related to gold production $ 410 $ 464 $ 499 Depreci
Slide 32: Note: EBITDA
NOTE 2 EBITDA is a non-GAAP financial measure, which excludes income tax expense, finance costs, finance income and depreciation. EBITDA is a valuable indicator of our ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund cap
Slide 33: Appendix B: Cuatro Esquinas Significant Intercepts
APPENDIX B: CUATRO ESQUINAS SIGNIFICANT INTERCEPTS 1. Historic significant intercepts are historically calculated using a 0.2 g/t Au cutoff and are uncapped. Quality Assurance and Quality Control: The drilling results for the Veladero Mine contained in this presentation have been prepared in accorda
Slide 34: Appendix C: Veladero Overview
APPENDIX C: VELADERO OVERVIEW Location: 6km East of the Chile‐Argentina border, 374km NW of San Juan, Argentina Ownership: 50% Barrick, 50% Shandong Gold Group Mine Type: Open Pit Products: Gold, Silver The mine is located at elevations of between 3,800‐5,000 meters above sea level. Ore is c
Slide 35: Appendix C: Production Metrics
APPENDIX C: PRODUCTION METRICS 1. 2017 figures are stated on a 100% basis until June 30, 2017 and on a 50% basis thereafter 2. 2018E figures are stated on a 50.0% basis 3. See Endnote #1
Slide 36: Appendix C: Financial & Cost Metrics
APPENDIX C: FINANCIAL & COST METRICS 1. 2017 figures are stated on a 100% basis until June 30, 2017 and on a 50% basis thereafter 2. 2018E figures are stated on a 50.0% basis 3. See Endnote #1 4. These are non‐GAAP financial performance measures with no standardized meaning under IFRS. For further i
Slide 37: Appendix C: Mining
APPENDIX C: MINING Open pit mining at Filo Federico Pit • Conventional truck/shovel operation • Pit dimensions: 1.2km long x 2.1km wide x 600m deep (no backfill) • Typical bench height: 15m • Primary loading fleet: • 2 x Komatsu PC5500 • 3 x Liebherr R996 • 4 x Caterpillar FEL CAT994 • Primary hauli
Slide 38: Appendix C: Processing
APPENDIX C: PROCESSING 1. 2017 figures are stated on a 100% basis until June 30, 2017 and on a 50% basis thereafter
Slide 39: Endnotes
TECHNICAL INFORMATION The scientific and technical information contained in this presentation has been reviewed and approved by Rob Krcmarov, Executive Vice President Exploration and Growth of Barrick; Steven Haggarty, P. Eng., Senior Director, Metallurgy of Barrick; Rick Sims, Registered Member SME