Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — CIBC Presentation (November 2003)
12 slides from Barrick Mining's conference presentation, Nov 4, 2003
Slide 1: Gold Price Performance
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 GOLD PRICE PERFORMANCE 400 “Sustainable gold rally” 375 350 325 300 275 250 2001 2002 2003
Slide 2: Corporate Objectives
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 CORPORATE OBJECTIVES VISION § To be the global industry leader STRATEGY § Exploit our size, international experience and financial strength to replace/increase our reserves and production EXECUTION § At operating mines § Advance development
Slide 3: Geopolitical Diversity
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 NORTH AMERICA Eskay Creek Geopolitical Diversity Hemlo Holt-McDermott Meikle Betze-Post 2003E 2002 Round Mt. PRODUCTION RESERVES 30% 59% 42% 15% SOUTH AMERICA EAST AFRICA 17% 18% 13% 6% Bulyanhulu AUSTRALIA Alto Chicama Pierina Plutonic Law
Slide 4: Execution – Operating Performance
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 EXECUTION – Operating Performance § Nine month production: 4.21Moz § Third quarter production: 1.48Moz § Nine month cash costs: $186 per oz § Third quarter cash costs: $180 per oz – Excellent performances at Betze-Post and Kalgoorlie offset
Slide 5: Execution – Development Projects
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 EXECUTION – Development Projects ALTO CHICAMA, PERU POTENTIAL § Reserves: 7.2 Moz § Production est: 540,000 oz § Average cash cost est: $135/oz PLAN § Open pit - crushing/leaching § Capital costs est: $340M EXECUTION – Development Projects
Slide 6: Execution – Exploration Strategy
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 EXECUTION – Exploration Strategy § > 2 million ounce gold deposits § 6 high priority countries (Peru, Chile, Argentina, USA, Tanzania, Australia) § Geographical mix 2003 EXPLORATION FORECAST Regional Breakdown of projects in the Africa pipe
Slide 7: Alto Chicama Regional Targets
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 C A J A M A R C A ALTO CHICAMA REGIONAL TARGETS GOITOS LAGUNAS Piedra Grande NW Huamachuco 1,350 sq. km L A L I B E R T A D Otuzco LAGUNAS Genusa Lagunas Norte Lagunas La Capilla Lagunas West Sur 8° Quiruvilca Tres Cruces ALUMBRE 0 10 20 UR
Slide 8: Investments – QGX Limited
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 INVESTMENTS – QGX Limited § Three million shares at $4.00 per share § Purchase represents 9.5% interest § Provides strategic investment and entry into Mongolia, a highly prospective area RESOURCES TO EXECUTE STRATEGY FINANCIAL § “A” rated b
Slide 9: Unhedged Forward Sales Program
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 FORWARD SALES PROGRAM § Flexibility delivers a premium GOLD PRICE – FIRST NINE MONTHS 2003 375 SELL AT SPOT PRICE SELL AT $340 FLOOR PRICE 350 $340 325 Jan 3 Sept. 26 2003 2003 MARK-TO-MARKET TOTAL REVENUE FROM GOLD SALES – INCLUDING HEDGED
Slide 10: Resources to Execute Strategy
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 RESOURCES TO EXECUTE STRATEGY HUMAN § New organizational structure – Consolidating life-of-mine accountability under the COO – Establishing regional economic business units – Building a corporate center that adds value to the global enterpr
Slide 11: NAV Valuation
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 NAV VALUATION § Barrick is trading at a discount on P/NAV basis PRICE TO NAV ANALYSIS (US$) Firm – gold price assumed Barrick Newmont Placer CIBC - $375 2.15 4.71 1.80 Merrill Lynch - $375 2.05 3.49 2.03 BMO Nesbitt Burns - $375 1.14 2.15 1
Slide 12: Forward Looking Statement
BARRICK GOLD CORPORATION CIBC Presentation November 4, 2003 FORWARD LOOKING STATEMENT Certain statements included herein, including those regarding production and costs and other statements that express management’s expectations or estimates of our future performance, constitute “forward- looking st