Barrick Mining Corporation · TSX:ABX
Barrick Mining — Corporate Update (January 2020)
37 slides from Barrick Mining's corporate update, Jan 30, 2020
Slide 1: Mali: Committed to a new decade of investment and delivery
Mali Committed to a new decade of investment and delivery 1
Slide 2: Cautionary Statement on Forward Looking Information
Cautionary Statement on Forward Looking Information Certain information contained in this presentation, including any information as to Barrick’s strategy, plans, or future financial or operating performance, constitutes “forward- looking statements”. All statements, other than statements of histori
Slide 3: The leading African gold miner
The leading African gold miner Jabal Sayid (50%) Loulo-Gounkoto (80%) Morila (40%) Massawa (83.25%) Kibali (45%) Tongon (89.7%) North Mara (84%) Lumwana Bulyanhulu (84%) Buzwagi (84%) Gold production Projects Tanzania Copper production
Slide 4: Committed to a new decade of investment and delivery
Committed to a new decade of investment and delivery… 2012 2013 2014 2015 2016 2017 2019 Record production Loulo Complex RRL production +1.2Moz +1.25Moz Gounkoto Randgold – Barrick Morila mine life record exceeds 1Moz RRL group RRL group super pit merger extended production LTIFR down 18% production
Slide 5: Loulo-Gounkoto: what we found and what we've established
Loulo-Gounkoto … what we found and what we’ve established
Slide 6: Loulo-Gounkoto: what we found and what we've established
Loulo-Gounkoto: what we found and what we’ve established
Slide 7: Loulo-Gounkoto: what we found and what we've established
Loulo-Gounkoto: what we found and what we’ve established
Slide 8: Communities today
Communities today... BARRICK
Slide 9: Safety, health and environment: Mali
Safety, health and environment…Mali Safety YTD LTIFR/Million Hours Worked 1,4 Improved safety performance year on year with LTI’s decreasing from 4 to 2 and LTIFR from 0.67 to 0.31 at Loulo, while Gounkoto achieved 1,2 LTI free year for 2 consecutive years 1 0,8 Continue to apply ISO 45001:2018 Safe
Slide 10: Safety, health and environment: Mali
Safety, health and environment…Mali HIV Positivity Rate HIV 2 HIV up from 2018, but significantly down from 2015 and the VCT number increased year on year. 1,5 Collaboration with local NGOs working in the surrounding villages. 1 HIV program audited and improvement plan developed. Preventative action
Slide 11: FINA reserve
FINA reserve… biodiversity offsetting project for Mali mines Convert residual environmental impact of Loulo, Gounkoto and Morila mines into conservation program of the FINA reserve 2020: Establish team, office; open 20km of 2021: Creation of 300km squared of cattle 2022: Fencing off area of 200km sq
Slide 12: Delivering on 2019 business plan
Delivering on 2019 business plan… Loulo-Gounkoto Complex exceeding guidance by producing 714,802 ounces1 Gounkoto UG feasibility update completed supporting its development to commence in 2020 - significant growth potential Yalea and Gara now deliver consistently to plan Innovation with RAMJACK proj
Slide 13: Loulo UG development and mining
Loulo UG development and mining2… UG ore tonnes Q4 2019 Ore tonnes achieved during quarter - 725Kt Stope tonnes Dev tonnes Overall mining compliance improved to over 90% 300 Commenced single hole auto drilling with Solos during 250 Tonnes ‘000s shift change 200 Record production of paste during quar
Slide 14: Ramjack Newtrax update
Ramjack Newtrax update… The project will automate the control of Yalea Mine secondary fans based on personnel and vehicle activities on the levels as well as the production and location tracking and safety management capabilities of the Newtrax system. This is achieved through the combination of thr
Slide 15: Gounkoto underground project
Gounkoto underground project… Key Highlights Gounkoto UG feasibility update completed On track to start development in Q4 2020 Potential additional ounces for the complex
Slide 16: Gounkoto Open Pit
Gounkoto Open Pit2… Ore Tonnes Mined Q4 2019 700 1,350Kt ore mined in Q4 600 Thousands Effective water management system was in place during the rainy 500 season 400 300 Excavator & truck availabilities were maintained above 80% 200 Waste stripping 100 247 469 633 6,958Kt mined in Q4 with improvemen
Slide 17: Production, recovery and throughput
Production, recovery and throughput1… Tonnes million Oz 000 % 6 1 200 100,00 97,00 5 1 000 94,00 91,00 4 800 88,00 85,00 3 600 82,00 2 400 79,00 76,00 1 200 73,00 70,00 - - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Gold Produced oz Tons treated Plant Recovery %
Slide 18: Loulo Power Generation Blend (HFO: LFO)
Loulo Power Generation Blend (HFO: LFO)… Total power generated MWh Power unit cost $/kWh 40000 0,200 35000 30000 0,150 25000 20000 0,100 15000 10000 0,050 5000 0 0,000 Nov-19 Dec-19 Nov-18 Dec-18 Feb-19 Jul-19 Feb-18 Jul-18 May-19 Aug-19 Sep-19 May-18 Aug-18 Sep-18 Oct-19 Oct-18 Apr-19 Apr-18 Jan-19
Slide 19: Loulo Solar Project: Construction Updates
Loulo Solar Project… Construction Updates Construction: Earthworks by local contractor EGTF: Completed and handed over to JAD Topographic pegs of 1st 5 MW has been completed Trenches of Zone 1A have been completed Project split into four phases with commissioning of Phase 1 (5 MW) March 2020 Phase 2
Slide 20: TSF capacity - Upgrade in 2020 to sustain LOM operation
TSF capacity - Upgrade in 2020 to sustain LOM operation… Tailings Surface New TSF =127Ha Current TSF =171Ha Combined TSF =298Ha Tonnages deposition split New TSF = 22.7 Mtons Current TSF = 24 Mtons Combined TSF (last 5 years) = 10MTons Total tonnage 56.7 million tonnes New TSF upgrade milestones (as
Slide 21: Loulo District: Tier 1 Destination
Loulo District…Tier 1 Destination Major Mine Exploration Focus Area Satellite Mine Gounkoto Permit: Robust, untested auger anomalies verified on Gounkoto Domain Boundary and Faraba Structures Loulo Permit: for Q1 2020 drill test At Yalea, 320m step out drilling south of Yalea Transfer Robust drill r
Slide 22: Yalea System: New Emerging Shoot Trends
Yalea System… New Emerging Shoot Trends… Key Observation: Bold step out drilling 320m south of the Transfer Zone, intersects potential continuation of system Scout drilling confirms northern extension of Panel Zone and HW splay geometry Next Steps: Continue step out scout drilling, south of the Tran
Slide 23: Gounkoto MZ1: Assessing UG Potential
Gounkoto MZ1…Assessing UG Potential Key Observations: High grade intersections returned at the base of the current MZ1 Shoot Subordinate and narrower high- grade shoot trends defined to the north - open down plunge Next Steps: Complete 160m step out holes on the higher-grade shoots to the north (Q1/
Slide 24: Loulo-Gounkoto: development of local skills
Loulo – Gounkoto… development of local skills Total Employees: 4 593 Contractors Nationals: 4 387 (96%) Expats Expats: 206 (4%) 80 (2%) Mine Mine Expats Nationals Permanent 126 (3%) 1 640 (36%) Contractors Temporary Nationals Nationals 2 410 (52%) 337 (7%) *Totals may not add due to rounding
Slide 25: Local contractors and supply strategy
Local contractors and supply strategy… $313 million spent on local contractors and suppliers in 2019 (services rendered, goods and fuel supply) $500K provision created for an incubation project focused on incorporating local contractors into the mining industry Partnership with Malian contractors Mi
Slide 26: Barrick: contribution to Mali economy
Barrick…contribution to Mali economy Barrick/Randgold operations have contributed approximately US$ 7.2 billion to the Malian economy in the form of taxes, royalties, salaries and payments to local suppliers in the last 23 years Contribution to Malian % Contribution to Malian GDP Economy 10% LOULO 9
Slide 27: Dividends, Taxes and Royalties paid to Mali
Dividends, Taxes and Royalties paid to Mali… Barrick/Randgold operated mines have paid approximately US$ 2.7 billion in the form of Dividends, Taxes and Royalties to the State over 23 years Dividends to Dividends, Taxes and Barrick Royalties to the State US$ 1.0 billion US$ 2.7 billion
Slide 28: Loulo-Gounkoto CSR - governance and stakeholder engagement
Loulo-Gounkoto CSR - governance and stakeholder engagement… >$11m invested to date; $29.6m patent paid Potable water 57 boreholes and 4 water supply systems constructed Regular water quality analysis with annual feedback sessions held in villages Establishment of water management committees in villa
Slide 29: Loulo-Gounkoto: update of agricultural development
Loulo-Gounkoto… update of agricultural development Capital of $2.2 million over 5 Infrastructure (Center) Accommodation, classrooms, years funded by Loulo-Gounkoto conference room, fishponds, poultry, 1 center and 5 incubation farms admin, canteen constructed Infrastructure 5 farms X 5ha specialized
Slide 30: Agribusiness: Installed entrepreneurs
Agribusiness…Installed entrepreneurs 48 entrepreneurs established Support from the mine – water supply system +212 million FCFA of credit granted 30 farms created 5 farms of 4.9ha for plantation 4 farms of 4.7ha for poultry 4 farms of 5.7ha for cattle fattening 14 farms of 27.8ha for gardening 3 far
Slide 31: Morila: Successful transition to tailings treatment
Morila… Successful transition to tailings treatment TSF reclamation treatment methodology Environment Benefit: Mitigate the dust impact coming from TSF No impact on the groundwater quality at the two Sanso water supply boreholes (Boreholes 866 and 923) 149,330oz2 produced by reclaiming the TSF mater
Slide 32: Morila after closure - current projects
Morila after closure - current projects > $2m spent to develop Morila into a commercial agricultural hub Poultry farming Fish farming Honey farming Mango farming
Slide 33: Illegal mining
Illegal mining… Issues Invasion of permits and mining areas Use of mechanical equipment causing severe damage Dredging the river State not enforcing the law Use of dangerous chemicals (cyanide & mercury) Major environmental damage: siltation and contamination of river and ground water Security and s
Slide 34: Outstanding legal and fiscal issues
Outstanding legal and fiscal issues… working towards amicable solutions The dispute over tax and related issues has near full resolution which allows us to look forward to continue to grow our partnership with the Mali Government and its people; Strong engagement by demanding the application of our
Slide 35: Endnotes
Endnotes… 1. On a preliminary 100% basis. Our 2019 attributable production forecast is 520 - 570 thousand ounces for Loulo-Gounkoto. 2. On a preliminary 100% basis. Technical Information The scientific and technical information contained in this presentation has been reviewed and approved by: Rodney
Slide 36: Appendix A - Yalea Transfer and Panel Zones Significant Intercepts
Appendix A - Yalea Transfer and Panel Zones Significant Intercepts i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum intercept width is 2m; internal dilution is equal to or less than 2m total width. ii. Transfer/Panel Zone drill hole nomenclature: prospect initial Y/YA
Slide 37: Appendix B - Gounkoto MZ1 Significant Intercepts
Appendix B - Gounkoto MZ1 Significant Intercepts i. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum intercept width is 2m; internal dilution is equal to or less than 2m total width. ii. Gounkoto drill hole nomenclature: prospect initial GK (Gounkoto), GKUG (Gounkoto Und