Slide 1: Results for the Quarter ended 30 June 2019
Results for the Quarter ended 30 June 2019
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 our strategy, projects, plans or future financial or operating performance, constitutes “forward-looking statements”. All statements, o
Slide 3: Health & Safety
Health & Safety… Fatality prevention commitments (FPC) programme continued to 2019 Group Injury Rate be implemented during Q2 – focused communication during safety 3 meetings and leadership field engagements saw improvement in 2,74 safety performance quarter on quarter 2,5 Lost time injury frequency
Slide 4: Environment & Community
Environment & Community… Zero high significance environmental incidents recorded during the quarter Response to the Church of England’s request for information regarding tailing storage facilities (TSF) prepared and posted to Barrick’s website Independent assurance of Barrick’s sustainability relate
Slide 5: Q2 highlights
Q2 highlights… Another strong quarter points to annual production at top end of guidance range and costs at lower end Debt, net of cash unchanged at $3.7bn, after payment of Q1 dividend Net earnings of $0.11 per share increased quarter on quarter; adjusted net earnings per share2 of $0.09 in line wi
Slide 6: Group operating results
Group operating results… Gold production in-line with the solid base Q2 Q1 Q2 set in Q1 2019, driven by strong Gold operating results 2019 2019 2018 performances at Loulo-Gounkoto, Veladero Production (oz 000) 1,353 1,367 1,067 and Kibali Cost of sales ($/oz)4 964 947 882 Expected annual gold produc
Slide 7: Group financial results
Group financial results… Adjusted net earnings of $0.09 per share2 Q2 Q1 Q2 Financial Results (Q2 2018: $0.07) slightly down on Q1 2019 2019 2018 following lower copper revenue and Revenue ($ million) 2,063 2,093 1,712 earnings Net earnings (loss) ($ million) 194 111 (94) Net cash provided by operat
Slide 8: Cortez
Cortez… Nevada, USA Production improved 7% from Q1 2019 primarily due to increased tonnes and grade to the Goldstrike Cortez (100%) Q2 2019 Q1 2019 Q2 2018 Roaster marginally offset by lower grades through the Total tonnes mined (000) 31,598 27,572 29,420 oxide mill as mining from higher grade Corte
Slide 9: Goldstrike
Goldstrike… Nevada, USA Gold produced decreased 22% primarily due to Goldstrike12 (100%) Q2 2019 Q1 2019 Q2 2018 lower throughput and grade processed through the autoclave as well as lower autoclave recoveries Total tonnes mined (000) 12,138 11,982 16,864 impacted by a higher blend of alkaline ore A
Slide 10: Turquoise Ridge
Turquoise Ridge… Nevada, USA Gold production was 16% lower, primarily due to Turquoise Ridge13 (75%) Q2 2019 Q1 2019 Q2 2018 lower ore tonnes mined resulting from unplanned shaft repairs and power interruptions, combined with Tonnes mined (000) 180 191 165 lower cut off grades Average grade mined (g
Slide 11: Nevada Gold Mines JV
Nevada Gold Mines JV… Turquoise Twin Creeks Nevada Gold Mines Joint Venture transaction closed Ridge N South Arturo on 1 July, establishing Nevada Gold Mines LLC – Winnemucca Goldstrike Carlin Long Canyon Elko Barrick (operator, 61.5%); Newmont Goldcorp (38.5%) Phoenix Gold Quarry Emigrant Hosts thr
Slide 12: Nevada Gold Mines…Carlin ore movement optimised
Nevada Gold Mines…Carlin ore movement optimised Roaster Autoclave BR19 Leeville Pete R2 Exodus Mill 5 Mill 6 Former Barrick asset (orebody / processing facility) Former Newmont Goldcorp asset (orebody / processing facility)
Slide 13: Goldrush – Fourmile…drilling closes the gap
Goldrush – Fourmile…drilling closes the gap Nevada, USA Update of geological model completed resulting in the merger of the Goldrush and Fourmile models At Fourmile, significant drill intercepts confirm Anna Fault and associated breccia is an important ore control below known resourcei 33.4m @ 44g/t
Slide 14: Fourmile…on track to deliver significant resource growth
Fourmile…on track to deliver significant resource growth 5400 LEVEL Drilling continued to expand the high grade mineralization with FM19-32D Ovi approximately 100m added along strike to the south FM19-35D Dw8 Dhc Drilling in Q2 delineated a new zone of strong and continuous FM19-22D N mineralization
Slide 15: Hemlo
Hemlo… Ontario, Canada Hemlo (100%) Q2 2019 Q1 2019 Q2 2018 Gold production in Q2 2019 in line with the prior quarter as higher throughput was offset by lower Ore tonnes processed (000) 779 733 755 grade – on track to achieve guidance Average grade processed (g/t) 2.38 2.49 1.69 All-in sustaining co
Slide 16: Pueblo Viejo
Pueblo Viejo… Dominican Republic Gold production in Q2 2019 was 16% lower than Pueblo Viejo16 (60%) Q2 2019 Q1 2019 Q2 2018 prior quarter mainly due to delayed access to higher Open pit tonnes mined (000) 6,116 7,070 6,685 grade phases of Moore pit as a result of a wall Average grade processed (g/t)
Slide 17: Pueblo Viejo JV upside… expansion to extend Life of Mine
Pueblo Viejo JV upside…expansion to extend Life of Mine Expansion study Proposed expansion includes an extension of the mine’s processing plant and tailings capacity with an estimated initial capital investment approximately $1.3 billion dollars (100% basis) and the potential to extend the life of t
Slide 18: Pueblo Viejo… improved geological model demonstrates upside potential
Pueblo Viejo…improved geological model demonstrates upside potential Geological modeling efforts defined a new stratigraphic and geological framework for PV with more clearly defined key controls to mineralization and potential for extensions - will be used to generate an improved block model and re
Slide 19: Veladero
Veladero… Argentina Gold production 7% higher, primarily as a result of Veladero (50%) Q2 2019 Q1 2019 Q2 2018 leach pad recovery initiatives resulting in improved Open pit tonnes mined (000) 8,184 8,848 9,242 recoveries on material stacked in prior periods and a reduction in pad inventories. Averag
Slide 20: Exploration along the El Indio Belt
Exploration along the El Indio Belt… 130km long / 350km2 Mineralized Belt Collahuasi HS Au Targets Eocene- Porphyry Cu-Au Targets Oligocene N Veladero - Re-logging process and geological Abra Miocene Chile Argentina Chuquicamata model review progressing according to plan Cuatro Esquinas – near surfa
Slide 21: Porgera
Porgera… Papua New Guinea Porgera (47.5%) Q2 2019 Q1 2019 Q2 2018 Gold production was 8% lower, primarily due to Ore tonnes processed (000) 557 673 389 lower throughput partially offset by higher ore grades and the continued reduction of process Average grade processed (g/t) 3.25 3.19 4.21 inventori
Slide 22: Loulo-Gounkoto… delivers solid performance
Loulo-Gounkoto…delivers solid performance Mali Gold production was 15% higher than the prior Loulo-Gounkoto17 (80%) Q2 2019 Q1 2019 quarter mainly due to higher grade from the Total tonnes mined (000) 8,048 8,779 Gounkoto South pit, in line with plan, as well as slightly higher throughput, partially
Slide 23: Loulo District…Tier 1 Destination
Loulo District…Tier 1 Destination Deposit Regolith Map N Loulo Exploration Target permit Depositional Mali Erosional Low laterite Senegal Gounkoto Mid-high laterite Transported laterite permit Bena permit Erosional slopes Colluvium Follow up RC drilling planned to test continuity of Residual mineral
Slide 24: Massawa… significant upside
Massawa…significant upside Senegal Application for mining permit underway and the project’s environmental impact study has been approved Sabodala Mine Bakan Update of reserve pricing to $1 200/oz adds 200koz - lower strip (Teranga Gold) N ratios, higher proportions of low cost ore fed to the plant r
Slide 25: Kibali…another strong quarter
Kibali…another strong quarter DRC Gold production was 2% higher than the prior quarter Kibali18 (45%) Q2 2019 Q1 2019 as a result of slightly higher throughput, in spite of a winder failure during the quarter that restricted ore Total tonnes mined (000) 2,938 3,162 hoisted through the shaft Average
Slide 26: Kibali… drilling extends underground reserve base
Kibali…drilling extends underground reserve basei KCD Open Pit20 Sessenge Open Pit20 PB#3 & PB2 North 2018 Proven reserve:1.7Mt @ 2.71g/t for 148koz 2018 Proven reserve:1.2Mt@ 2.45g/t for 94koz 2018 Probable reserve 0.1Mt @ 2.20g/t for 8koz 2018 Probable reserve 3.2Mt @ 2.32g/t for 238koz 3000 Lode
Slide 27: Central and East Africa… potential for additional Tier One discoveries
Central and East Africa…potential for additional Tier One14 discoveries Barrick set to expand its exploration Ngayu Kibali portfolio across the Congo and Project N Tanzanian cratons Acacia Tanzanian assets to be managed as part of Barrick portfolio North after completion of purchase of Mara minority
Slide 28: Acacia acquisition…summary of terms
Acacia acquisition…summary of terms On 19 July 2019, Barrick and Acacia jointly announced that they had reached agreement on the terms of Barrick’s offer for the acquisition of the ordinary share capital of Acacia that it did not already own. Barrick’s offer received a unanimous, unqualified recomme
Slide 29: Other gold mines
Other gold mines… Kalgoorlie, Australia (50%) Gold production of 57koz was 4% higher compared to the prior quarter, primarily due to higher grade and tonnes processed, partially offset by lower recovery 2019 guidance lowered by Newmont Goldcorp (the operator) to reflect the lower mining rates achiev
Slide 30: Copper mines
Copper mines…. Lumwana, Zambia Lumwana (100%) Q2 2019 Q1 2019 Q2 2018 Production was 20% lower was due to repeated tears in main Copper produced (lbs million) 49 61 47 crusher conveyor and subsequent use of lower grade stockpile Cost of sales ($/lb) 2.07 2.16 2.43 as mill feed, resulting in a reduct
Slide 31: Annual gold production at top end of guidance range
Annual gold production19 at top end of guidance range… Total forecast annual gold production attributable to Barrick: 5 100koz – 5 600koz Donlin Gold (50%) Africa 1 420 – 1 540koz N America 2 340 – 2 540koz Golden Sunlight Hemlo Loulo-Gounkoto Nevada Gold Mines (61.5%) Pueblo Viejo (60%) (80%) Fourm
Slide 32: G&A costs halved relative to previous plans
G&A costs halved relative to previous plans… Corporate administration charges $ million 300 250 200 150 100 50 0 Guidance 2018 Actual 2018 Guidance 2019 Actual Q1 2019 Actual Q2 2019 Our original market guidance for 2018 was $275 million in corporate administration expenses with G&A headcount of alm
Slide 33: Global gold mine supply…2019 - 2029
Global gold mine supply…2019 - 2029 Industry facing production precipice Very few companies able to deliver value growth in this environment Moz 80 70 60 50 40 30 20 10 - 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Production Committed Probable Possible Concept Others Source: AME Research
Slide 34: Disciplined and thoughtful strategy secures six Tier 1 mines
Disciplined and thoughtful strategy secures six Tier 1 mines14… BARRICK - RANDGOLD NEVADA JV EXECUTION and DELIVERY Consolidate management of world’s largest gold complex Develop alternative strategy to secure synergies Opportunity and synergy identification – detailed analysis Execution and integra
Slide 35: Barrick…synonymous with value creation
Barrick…synonymous with value creation Index value (September 21, 2018 = 100) 180 72% 170 68% 160 150 140 130 120 25% 25% 110 100 90 80 Sep-18 Jan-19 Apr-19 Jun-19 Jul-19 Oct-18 Nov-18 Dec-18 Feb-19 Mar-19 May-19 Barrick Agnico Newmont Gold US$ Spot Source: Bloomberg
Slide 36: Endnotes
Endnotes 1. Total reportable incident frequency rate (TRIFR) is a ratio calculated as follows: number of reportable injuries x 1,000,000 hours divided by the total number of hours worked. Reportable injuries include fatalities, lost time injuries, restricted duty injuries, and medically treated inju
Slide 37: Endnotes
Endnotes 6. EBITDA is a non-GAAP financial measure, which excludes income tax expense; finance costs; finance income; depreciation; and income tax expense, finance costs, finance income and depreciation from equity investees. Management believes that EBITDA is a valuable indicator of our ability to
Slide 38: Endnotes
Endnotes 14. A Tier One Gold Asset is a mine with a stated life in excess of 10 years with 2017 production of at least 500,000 ounces of gold and 2017 total cash cost per ounce within the bottom half of Wood Mackenzie’s cost curve tools (excluding state owned and privately-owned mines). For purposes
Slide 39: Endnotes
Endnotes 18. Barrick owns 45% of Kibali Goldmines SA (Kibali) with the Democratic Republic of Congo ("DRC") and our joint venture partner owning 10% and 45%, respectively. Kibali is accounted for as an equity method investment on the basis that the joint venture partners that have joint control have
Slide 40: Appendix A – Fourmile Significant Intercept Table
Appendix A – Fourmile Significant Intercept Tablei Drill Results from Q2 2019 i. All intercepts calculated using a 5 g/t Au cutoff and are uncapped; Core Drill Holeii Azimuth Dip Interval (m) Width (m)iii Au (g/t) minimum intercept width is 0.8 m; internal dilution is less than 20% total width 732 -
Slide 41: Appendix A – Fourmile Significant Intercept Table
Appendix A – Fourmile Significant Intercept Tablei Drill Results from Q2 2019 Core Drill Holeii Azimuth Dip Interval (m) Width (m)iii Au (g/t) i. All intercepts calculated using a 5 g/t Au cutoff and are uncapped; 755.9 - 765.3 9.4 36.2 minimum intercept width is 0.8 m; internal dilution is less tha
Slide 42: Appendix B – Kibali Significant Intercept Table
Appendix B – Kibali Significant Intercept Tablei Drill Results from Q2 2019 Drill Results from Q2 2019 Lode RC Drill Hole Azimuth Dip Interval (m) Width (m) Au (g/t) Lode RC Drill Hole Azimuth Dip Interval (m) Width (m) Au (g/t) Lode 9000 KCDU2132 315 -72 282.1 - 299 16.9 4.80 Lode 11000 KCDU2277 31