Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Shareholder Meeting (April 2016)
35 slides from Barrick Mining's shareholder meeting presentation, Apr 26, 2016
Slide 1: Partnership. Performance. Value. Annual Meeting 2016
Partnership. Performance. Value. Annual Meeting 2016
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: Partnership Culture, Decentralized Model, Cash Flow Per Share, Financial Rigor
Partnership Decentralized Cash Flow Financial Culture Model Per Share Rigor
Slide 4: Streamline the Business
$ Streamline Strengthen Maximize Focus on the the Balance Free Cash Best Assets Business Sheet Flow and Regions Implemented Exceeded Generated Sold decentralized, debt reduction growing non-core partnership target free cash flow assets model
Slide 5: Decentralized model in place
Decentralized model in place Accelerated flow of information > Weekly Business Plan Review
Slide 6: Strengthen the Balance Sheet: Improved liquidity
Strengthen the Balance Sheet Improved liquidit Reduced r hae Total Debt by $3.1B
Slide 7: Improved liquidity
Improved liquidity Cash Position $2.5B1 $4.0B Amended Credit Facility 1. As of Dec. 31, 2015. See final slide #8.
Slide 8: Free Cash Flow
Free Cash Flow 4712 Achieved through effective ($M)1 $1,407 cost and capital management 2013 2014 2015 $1.6 billion improvement -136 over 3 years $1,265 Targeting to be free cash flow positive at $1,000/oz in 2016 $1,157 Realized Gold Price/oz1 -1142 1. See final slide #1. 2. See final slide #
Slide 9: More focused on core mines in the Americas
More focused on core mines in the Americas Golden Sunlight Turquoise Ridge Hemlo Sold 5 non-core assets Goldstrike Cortez Formed 2 joint ventures Ruby Hill Jabal Pueblo Viejo Sayid Bald Mountain Round Mountain Spring Valley Acacia Porgera JV Lagunas Norte Lumwana Zaldivar JV Kalgoorlie Cowal Vel
Slide 10: Leveraging our respective strengths
Zaldívar 50/50 JV Leveraging our Porgera 50/50 JV with Antofagasta respective with Zijin Mining strengths Opportunities to collaborate on future projects
Slide 11: Operating Results 2015
2015 Operating —. Results ae
Slide 12: Gold cost per ounce 2013-2015
1 ($/oz) $915 $864 $831 2013 2014 2015 400 1. See final slide #1
Slide 13: Copper cost per pound 2013-2015
1 ($/lb) $2.74 $2.79 $2.33 2013 2014 2015 1.0 1. See final slide #1
Slide 14: 2015 financial results
$344 million adjusted net earnings1 $2.8 billion net loss reflects $3.1 billion of impairments $2.8 billion operating cash flow $471 million free cash flow 1. See final slide #1
Slide 15: Total reportable injury frequency rate
2.79 1.64 1.50 1.30 1.20 0.93 0.92 0.76 0.64 0.58 0.46 05 06 07 08 09 10 11 12 13 14 15 Total reportable injury frequency rate1 1. See final slide #9
Slide 16: Free Cash Flow, Balance Sheet, Operational Excellence, Capital Discipline
$ $ Free Balance Operational Capital Cash Flow Sheet Excellence Discipline Generate free Reduce total Implement Allocate capital cash flow at a debt by a Best in Class using long term gold price of further $2 initiative across gold price of $1,000/oz billion all operations $1,200/oz
Slide 17: 2016 Guidance
016 Guidance 5.0-5.5 MILLION OUNCES’ 760-$810 AISC / OUNCE’
Slide 18: 1. See final slide #3
1. See final slide #3
Slide 19: First quarter 2016 highlights
Free cash flow of $181 million Net loss of $83 million; adjusted net earnings of $127 million 1.3 million ounces at AISC of $706 per ounce On track with 2016 production guidance and improved AISC and cash cost guidance Repaid $842 million or 42% of 2016 debt reduction target
Slide 20: Foster Partnership Culture, Industry Leading Margins, Portfolio Management
Foster a Distinctive Partnership Culture $ Produce Industry Leading Margins Deliver Superior Portfolio Management
Slide 21: Build partnerships of depth and trust with all stakeholders
Build partnerships of depth and trust with all stakeholders Communities Governments Our People “One laptop per child” Be open Authentic partnership Dominican Republic and transparent model: 50 partners
Slide 22: Productivity: Operate in a gold price agnostic way
Operate in a gold price agnostic way Productivity Drive Innovation Step Change In Approach To Productivity Immediate Productivity Improvements Implement Innovation Across All Operations Leverage Best‐in‐Class to Identify and Drive One Barrick Operating System Improvements Achieve Fixed Targets Acr
Slide 23: Digitization
A 21st century company must make the best use of technology Digitization Connect the unconnected Turn information into action Enable the next level of productivity and efficiency
Slide 24: Identify opportunities to grow free cash flow per share
Identify opportunities to generate or grow free cash flow per share Mineral Resource Earn-ins / Project Management Partnerships Development Reserve Replacement Arakaka (Guyana) Goldrush (Nevada) Prioritize cash margin over ounces
Slide 25: Reserves change 2014 to 2015
93 Moz 6.8 5.1 92 Moz Reserves 3.1 3.7 Reserves Processed Drilling and cost Sold reduction Gold price change 2014 2015 1. See final slide #4
Slide 26: Average reserve grade of core mines more than double peer average
1.88 Average reserve grade of core mines ABX more than double peer average2 CORE MINES 1.32 ABX TOTAL 1.06 0.95 0.8 g/t PEER AVERAGE 0.70 0.63 NEM GG KGC NCM 1. See final slide #4. 2. See final slide #5.
Slide 27: Full Cycle Approach
Cortez Deep South Goldrush Full Cycle Approach Site level responsibility Turquoise Ridge Lagunas Norte Strong focus on Social License Self-funding stages with improved business and risk planning
Slide 28: Underground Expansion
Underground Expansion1 Reserve: 1.7 Moz 2 Feasibility study in progress Permitting expected to commence in 2016 1. See final slide #6 2. See final slide #4
Slide 29: Goldrush
Goldrush Growth Along the Cortez Trend1 M&I Resource: 8.56 Moz2 Inferred Resource: 1.65 Moz2 Feasibility study in 2016 1. See final slide #6 2. See final slide #4
Slide 30: Three-Phase Expansion
Three-Phase Expansion1 Reserve: 4.2 Moz2 M&I Resource: 11.4 Moz2 New shaft will enable higher throughput Future production from extension of current ore body 1. See final slide #6 2. 75% basis; see final slide #4
Slide 31: Refractory Ore Project
Proposed Mill and Concentrator Refractory Ore Project1 Reserve: 2.1 Moz2 Extends mine life by 9 years Proposed Autoclave Process Plant Feasibility study and environmental permitting in progress 1. See final slide #6 2. See final slide #4
Slide 32: Donlin Gold, Cerro Casale, Pascua-Lama
Donlin Gold (50%) Cerro Casale (75%) Pascua-Lama M&I Resource: 19.5 Moz1 Reserve: 17.4 Moz1 Reserve: 15.4 Moz1 Assessing potential Evaluating smaller starter Temporary suspension design and execution pit option with potential plan in place enhancements to to significantly reduce Develo
Slide 33: Alturas
Alturas Grade x Thickness (gpt‐m Au) <25 25 – 50 50 – 100 > 100 Strong Growth Potential Favorable Alteration Inferred Resource: 5.5 Moz1 Scoping study underway2 1km Chile Argentina 1. See final slide #4 2. See final slide #7 48
Slide 34: The Best Assets Managed to Deliver the Best Returns
The Best Assets Managed to Deliver the Best Returns
Slide 35: Endnotes
Endnotes 1. All‐in sustaining costs (“AISC”) per ounce/per pound, realized gold price per ounce, adjusted net earnings and free cash flow are non‐GAAP financial performance measures with no standardized definition under IFRS. For further information and detailed reconciliations, see pages 35‐40 of B