Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Merger or Acquisition (September 2018)
22 slides from Barrick Mining's merger presentation, Sep 24, 2018
Slide 1: A new champion for long-term value creation in the gold industry
A new champion for long-term value creation in the gold industry
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation has been prepared solely for information and for use in connection w
Slide 3: Disclaimer: Forward looking statements
Disclaimer Forward looking statements This presentation (including information incorporated by reference in this presentation), oral statements made regarding the Merger, and other information published by Barrick and Randgold contain statements which are, or may be deemed to be, “forward-looking st
Slide 4: New Barrick: A new champion for sustainable profitability
New Barrick A new champion for sustainable profitability New Barrick will hold 5 of the world’s top 10 Tier One Gold Assets1 and will have the lowest total cash cost among Senior Gold Peers2 Powered by a Proven combined leadership and management common vision of team with strong ownership culture lo
Slide 5: Top 10 Global Tier One Gold Assets By Total Cash Cost
New Barrick 5 out of the Top 10 Tier One Gold Assets (> 500 koz; > 10 year mine life; bottom half of cost curve)2 Top 10 Global Tier One Gold Assets By Total Cash Cost1,2 (US$/oz) New Barrick Asset $675 $697 $621 $623 $649 $552 $578 $580 $482 $426 Cortez Sukari Olimpiada Loulo-Gounkoto Cadia Merian
Slide 6: A proven team committed to value creation
New Barrick A proven team committed to value creation John Thornton New Barrick Executive Chairman Board of Directors Mark Bristow President and CEO Kevin Thomson COO COO COO Graham Shuttleworth SEVP Strategic Matters Catherine Raw Willem Jacobs SEVP CFO North Latin Africa & Project Exploration Trea
Slide 7: Leader across key metrics among Senior Gold Peers
New Barrick Leader across key metrics among Senior Gold Peers Annual Adjusted EBITDA1,6 Adjusted EBITDA Margin1,6 Lowest Total Cash Cost2,6 New Barrick $4.7 New Barrick 49% New Barrick $611 Newmont $2.7 Agnico 41% Newcrest $749 Goldcorp $1.3 Newcrest 39% Newmont $760 Newcrest $1.3 Goldcorp 38% Agnic
Slide 8: Extensive land positions in many of the world's prolific gold districts
New Barrick Extensive land positions in many of the world’s prolific gold districts Donlin Gold (50%) Hemlo Golden Sunlight Turquoise Ridge Goldstrike Loulo-Gounkoto Cortez Pueblo Viejo (60%) Jabal Sayid (50%) Goldrush/ Massawa Morila (40%) Fourmile Tongon Kibali (45%) Porgera (47.5%) Lagunas Norte
Slide 9: New Barrick: 3D growth
New Barrick 3D growth ∎ Asset optimisation ∎ Improved efficiencies ∎ Focus on delivery Fourmile/ Goldrush Turquoise Ridge Nevada Potential Tier 1 Canada Kibali Africa Loulo-Gounkoto Copper El Indio Brownfield Exploration Extensions 9
Slide 10: Significant rerate potential
New Barrick Significant rerate potential P/2017 CF 1,2,3 (x) EV/2017 Adjusted EBITDA1,4,5 (x) Agnico 10.6x Agnico 9.8x Newcrest 8.4x Newcrest 9.4x Goldcorp 7.9x Goldcorp 8.9x Newmont 7.3x Newmont 7.1x New Barrick 7.0x New Barrick 5.1x Average (excluding New Barrick) Average (excluding New Barrick) 8
Slide 11: A dynamic new force with shared vision and strategy
New Barrick A dynamic new force with shared vision and strategy Barrick Randgold ∎ High quality assets ∎ Successful entrepreneurial management ∎ Industry leading Adjusted EBITDA1 ∎ High return on invested capital ∎ Strong partnership-ownership culture ∎ Strong development track record ∎ Strengthened
Slide 12: Powered by an ambition to deliver sustainable profitability and growth
New Barrick Powered by an ambition to deliver sustainable profitability and growth Superior World-Class Financial Discipline and Assets Management Team Investment ∎ Tier One Gold Assets and ∎ Fully implement decentralized ∎ Disciplined approach to growth, strategic assets management ethos and levera
Slide 13: A leading gold investment vehicle
New Barrick A leading gold investment vehicle Focus on Tier One Gold Assets and strategic assets Driven by FCF per share growth and shareholder returns Emphasis on cost reduction Strong cash flow generation to fund robust investment Exploration potential from extensive land positions in prolific gol
Slide 14: Summary transaction terms
New Barrick Summary transaction terms ∎ All-share combination on a market-to-market basis Transaction ∎ Combined enterprise value of $24.1bn1 Structure ∎ Company to be called Barrick and listed on the Toronto and New York stock exchanges ∎ Exchange ratio of 6.1280 Barrick share per Randgold share ba
Slide 15: Technical Information
Technical Information The technical and scientific information contained in this presentation in respect of Randgold has been reviewed and approved for release by Simon Bottoms and Rodney Quick, Randgold’s Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Minera
Slide 16: Endnotes
Endnotes 1. “Total cash cost per ounce” is based on data from Wood Mackenzie as of 31 August 2018. Financial comparisons between the New Barrick Group and its Senior Gold Peers are made on the basis of the data presented by Wood Mackenzie to ensure that consistent measures are used in comparing asse
Slide 17: Endnotes
Endnotes 6. “Price to operating cash flow ratio” is a non-GAAP financial performance measures with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Financial comparisons between the New Barrick Group and the Senior Gold Peers list
Slide 18: Appendix A: Total Cash Costs
Appendix A Total Cash Costs Randgold uses the term “total cash costs1”, which is a non-GAAP financial performance measure, calculated using guidance issued by the Gold Institute. The Gold Institute was a non- profit industry association comprising leading gold producers, refiners, bullion suppliers
Slide 19: Appendix A: Cash costs per ounce
Appendix A Barrick uses the term “cash costs per ounce1” for the most comparable measure to “total cash costs”. Cash costs per ounce is a non-GAAP financial performance measure which is calculated based on the definition published by the World Gold Council (“WGC”) (a market development organization
Slide 20: Appendix A: Combined total cash cost reconciliation
Appendix A For purposes of presenting a combined total cash cost figure for the New Barrick Group, a reconciliation of Barrick’s cash costs per ounce to total cash costs was undertaken. The reconciliation calculation is set out below. Barrick cash costs ($millions) 1 $ 2,790 add back Barrick non-con
Slide 21: Appendix A: Adjusted EBITDA
Appendix A Adjusted EBITDA “EBITDA” is a non-GAAP financial performance measure, which excludes the following from net earnings: (i) income tax expense; (ii) finance costs; (iii) finance income; and (iv) depreciation. Barrick and Randgold believe that EBITDA is a valuable indicator of their ability
Slide 22: Appendix A: Adjusted EBITDA Margin
Appendix A Adjusted EBITDA Margin “Adjusted EBITDA Margin” is calculated by dividing Adjusted EBITDA by revenue. Barrick and Randgold use “Adjusted EBITDA margin” because they believe that this non-GAAP financial performance measure is an important indicator of recurring operations, as it excludes i
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