Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Q2 2018 Earnings Presentation
26 slides from Barrick Mining's earnings presentation, Jul 26, 2018
Slide 1: Barrick Gold Corporation 2018 Second Quarter Results
Barrick Gold Corporation 2018 Second Quarter Results | July 26, 2018 1
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: Today's Speakers
Today’s Speakers Kelvin Dushnisky Catherine Raw Greg Walker Henri Gonin Bill MacNevin Rob Krcmarov President Chief Financial Officer Senior Vice President General Manager Barrick Nevada CEO Executive Vice President Operational and Turquoise Ridge Exploration and Growth Technical Excellence 3
Slide 4: 2018 Priorities and Second Quarter Highlights
2018 Priorities and Second Quarter Highlights $ $ Free Cash Operational Capital Project Talent Flow Excellence Discipline Pipeline Development Q2 Gold production and costs in line with expectations On track to meet full-year gold production guidance Growth projects in Nevada and Dominican Repu
Slide 5: Second Quarter 2018 Financial Highlights
Second Quarter 2018 Financial Highlights EPS & Operating Cash Flow impacted by: Q2 Financial Results – Planned maintenance activities at Barrick Nevada and Pueblo Viejo Earnings per Share (“EPS”) ($) (0.08) – Unplanned downtime at the Lumwana Adjusted EPS1 ($) 0.07 crusher Operating Cash Flow ($M)
Slide 6: 2018 Guidance
2018 Guidance1 Production Cost of Sales Cash Costs2 AISC2 Capital Gold (koz) ($/oz) ($/oz) ($/oz) Expenditures 4,500-5,000 810-850 540-575 765-815 ($M) Production Cost of Sales C1 Cash Costs2 AISC2 Copper (mlb) ($/lb) ($/lb) ($/lb) 1,400- 345-410 2.00-2.30 1.80-2.00 2.55-2.85 1,600 Full-year gold
Slide 7: Balance Sheet Strengthened in July
Balance Sheet Strengthened in July Repurchased $629M of 2021 Total Debt ($B) notes in July 13.1 Annualized interest savings of ~$330M from start of 2015 9.97 July Less than $100M in debt due Repurchase before 2020, >85% of total 7.93 0.63 debt matures post-2032 6.42 6.39 5.76 5.76 Reduced to
Slide 8: Second Quarter 2018 Operating Results
Second Quarter 2018 Operating Results Golden Sunlight Hemlo Turquoise Ridge (75%) Barrick Nevada Jabal Sayid (50%) Gold Operating Results Pueblo Viejo (60%) Production (koz) 1,067 Porgera (47.5%) Cost of Sales ($/oz) 882 Lagunas Norte Acacia (63.9%) AISC1 ($/oz) 856 Lumwana Cash Costs1 ($/oz) 605 Za
Slide 9: Pueblo Viejo: Pilot Plant Expansion
Pueblo Viejo1: Pilot Plant Expansion Pilot Pre-oxidation Heap Leach Pilot pre-oxidation pad completed Completed construction of pilot heap Cell 1 leach pad to test recoveries loaded and irrigation underway – Cell 1 irrigation commenced mid-June Cell 2 completed – Cell 2 completed and ready for mat
Slide 10: Turquoise Ridge
Turquoise Ridge1,2 Plan View Q2 3rd Shaft Activities FWP Extension TS18043 & BPE Projects Shaft contractor mobilizing on site Dewatering advancing on plan Construction of power infrastructure well advanced TS18023 3rd Q2 Minex Drilling Getchell SHAFT North Zone Getchell extended to NW Fault
Slide 11: Barrick Nevada – Cortez Deep South and Goldrush
Barrick Nevada – Cortez Deep South1 and Goldrush2 Deep South Goldrush State permit for mining approved Decline development commenced West decline proceeding as planned Red Hill infill drilling in line with Mass excavations progressing well expectations (above the water table) Public revi
Slide 12: New High Grade Discovery at Fourmile
New High Grade Discovery at Fourmile1 Fourmile: Extending mineralization north along 7 km trend 4 of 5 best intercepts in 2018 returned in Q2 Open in multiple directions Goldrush2 Detail next slide Goldrush Probable Reserves2 Fourmile Red Hill M&I Resources2 High grade intercepts posted at 520
Slide 13: Strong and Continuous Mineralization – FM18-01D
Strong and Continuous Mineralization – FM18‐01D1 Detailed sample results 730.9 m from significant intercept of 16.6 m @ 71.6 g/t FM18-01D 729.4 m From (m) To (m) Au g/t 715.8 717.3 43 1.5 m @ 1.5 m @ 717.3 718.9 70.6 718.9 720.2 42.1 106.5 g/t 70.2 g/t 720.2 721.8 60.1 1.5 m @ 721.8 723.3 53.2 82.0
Slide 14: Fourmile Q2 2018 Select Significant Intercepts
Fourmile Q2 2018 Select Significant Intercepts1 Grade Thickness N 500 Meters (gram*meter) Goldrush project Fourmile project Plan at 5200 Level3 < 25 25 - 100 100 - 249 250 - 499 500 - 1755 Goldrush2 Goldrush Footprint Open mineralization FM18-16D FM18-01D FM18-07D FM18-06D 13.9m @ 56.8 g/t 16.6m @ 7
Slide 15: Barrick Gold Corporation 2018 Second Quarter Results
Barrick Gold Corporation 2018 Second Quarter Results | July 26, 2018 15
Slide 16: Question Period
Question Period Kelvin Dushnisky Catherine Raw Greg Walker Rob Krcmarov Mark Hill President Chief Financial Officer SVP Operational and EVP Exploration Chief Investment Officer Technical Excellence & Growth Bill MacNevin Henri Gonin Jim Whittaker Rodolfo Najar Sam Ash Barrick Nevada CEO General Mana
Slide 17: Technical Information and Endnotes
Technical Information The scientific and technical information contained in this press release has been reviewed and approved by Geoffrey Locke, P. Eng., Manager, Metallurgy of Barrick, Rick Sims, Registered Member SME, Vice President, Reserves and Resources of Barrick; and Robert Krcmarov, FAusIMM,
Slide 18: Appendix A – Fourmile Significant Intercepts
Appendix A – Fourmile Significant Intercepts1 Drill Results from Q2 2018 Core Drill Hole 2 Azimuth Dip Interval (m) Width (m) 3 Au (g/t) 656.8 - 667 10.2 9.3 715.8 - 732.4 16.6 71.6 758 - 761.2 3.2 7.43 FM18-01D 288 -70 808.9 - 817.5 8.5 30.9 841.1 - 844.1 3 8.93 891.8 - 894.7 2.9 24.7 FM18-02D 251
Slide 19: Appendix A – Fourmile Significant Intercepts
Appendix A – Fourmile Significant Intercepts1 Previously Reported Drill Results Core Drill Hole 2 Azimuth Dip Interval (m) Width (m) 3 Au (g/t) 666.9-672.7 5.8 10.9 695.3-709.6 14.3 31.8 GRC-0427D NA -90 727.9-729.4 1.5 12.2 921.4-927.2 5.8 49.7 4 GRC-0435D NA -90 702.2-707.4 5.2 14.4 705.6-714 8.4
Slide 20: Appendix A – Fourmile Significant Intercepts
Appendix A – Fourmile Significant Intercepts1 Previously Reported Drill Results Core Drill Hole 2 Azimuth Dip Interval (m) Width (m) 3 Au (g/t) 721.3-723.3 2 28.1 FM17-12D 350 -82 736.1-741 4.9 21.9 736.8-741.4 4.6 19.9 FM17-12W1 5 -81 856.8-862.6 5.8 10.9 652.9-659.6 6.7 6,7 14 6,7 FM17-13D 324 -82
Slide 21: Appendix A – Fourmile Significant Intercepts
Appendix A – Fourmile Significant Intercepts 1. All intercepts calculated using a 5 g/t Au cutoff and are uncapped; minimum intercept width is 0.8 m; internal dilution is less than 20% total width 2. Fourmile drill hole nomenclature: FM (Fourmile) followed by the year (18 for 2018) or GRC (Goldrush
Slide 22: Appendix B – Turquoise Ridge Significant Intercepts
Appendix B – Turquoise Ridge Significant Intercepts 1 Drill Results from Q2 2018 Core Drill Hole 2 Azimuth Dip Interval (m) Width (m) 3 Au (g/t) TS1802 288 -50 766.3-782.4 16.5 16.9 TS1804 295 -76 985.3-992.7 6.7 15.3 1. All significant intercepts calculated as being >6 m and >7.7 g/t or >3 m and >1
Slide 23: Appendix C
APPENDIX C NOTE 1 “Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial performance measures. Adjusted net earnings excludes the following from net earnings: certain impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and inv
Slide 24: Note 4
NOTE 4 “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 includes by-p
Slide 25: Note 5
Other adjustments for the three and six month periods ended June 30, 2018 include adding the cost of treatment and refining charges of $1 million and $1 million, respectively, (2017: $(1) million and $1 million, respectively) and the removal of cash costs and by-product credits associated with our P
Slide 26: Reconciliation of Copper Cost of Sales to C1 Cash Costs and AISC
pound will assist investors, analysts, and other stakeholders in understanding the costs associated with producing copper, understanding the economics of copper mining, assessing our operating performance, and also our ability to generate free cash flow from current operations and to generate free c