Slide 1: Second Quarter 2014 Results
Second Quarter 2014 Results Conference Call / Webcast – July 31, 2014 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: Second Quarter 2014 Results
Second Quarter 2014 Results Jamie Sokalsky Kelvin Dushnisky Jim Gowans Ammar Al-Joundi Darian Rich Outgoing President and CEO Co-President Co-President Senior Executive Executive Vice President, Vice President and CFO Talent Management 3
Slide 4: Second Quarter 2014 Highlights
Second Quarter 2014 Highlights Adjusted net earnings of $159M ($0.14/share)(1) Net loss of $269M ($0.23/share) includes $514M impairment charge for Jabal Sayid – goodwill and asset impairments of $316M and $198M Operating / adjusted operating cash flow of $488M(1) Reduced mid-year 2014 guida
Slide 5: Second Quarter Operating Highlights
Second Quarter Operating Highlights Gold production Lower capital spending 1.5 Moz External spend reductions AISC ($/oz) being sourced from: $910 – improved pricing and contracts $865 – elimination of contractors/in-sourcing – reductions to inventory, working capital and better maintenance pla
Slide 6: Improvements to 2014 Guidance
Improvements to 2014 Guidance(1) Lowest AISC of senior peers AISC(2) ($/oz) Adj. Op. Costs(2) CAPEX ($B) ($/oz) 980 2.7 Guidance 940 2.5 Range 640 920 630 2.4 900 2.2 590 580 Original Revised Original Revised Original Revised 2014 2014 2014 2014 2014 2014 700 400 1.0 (1) See final slide #2. (2) Se
Slide 7: Cornerstone Mines
Cornerstone Mines CORTEZ PUEBLO VIEJO LAGUNAS NORTE VELADERO GOLDSTRIKE 7
Slide 8: Cortez
Cortez Q2 performance impacted by lower than expected grades 2014 production expected at low end of 925,000-975,000 ounce range and AISC at high end of $750-$780 per ounce range 8
Slide 9: Goldstrike
Goldstrike Better than expected performance in Q2 Patented thiosulfate process on schedule for Q4; brings production forward 2014 production expected at high end of 865,000-915,000 ounce range and AISC at low end of $920-$950 per ounce range 9
Slide 10: Pueblo Viejo
Pueblo Viejo Autoclaves have achieved targeted and sustainable run rates 2014 production expected at 600,000-700,000 ounces and AISC to be at the high end of the $510-$610 per ounce range 10
Slide 11: Lagunas Norte
Lagunas Norte Q2 impacted by construction delay on Phase 5 leach area Higher grades and recoveries expected in second half 2014 production expected at high end of 570,000-610,000 ounce range and AISC at low end of $640-$680 per ounce range 11
Slide 12: Veladero
Veladero Strong operating quarter with better than anticipated costs 2014 production expected at high end of 650,000-700,000 ounce range and AISC at low end of $940-$990 per ounce range 12
Slide 13: Q2 Copper Operating Results
Q2 Copper Operating Results LUMWANA ZALDIVAR Conveyor repaired and Steady generator of free processing re-started ahead cash flow with first quartile of schedule three weeks ago costs 67 million pounds at C1 cash costs of $2.04 per pound(1) 2014 total copper guidance unchanged: 410-440 milli
Slide 14: Jabal Sayid – 50/50 JV Agreement
Jabal Sayid – 50/50 JV Agreement Agreement allows project to advance Production anticipated to begin in late 2015 100-130 Mlbs of copper in concentrate at first quartile C1 cash costs expected in first full five years 14
Slide 15: Future Growth Opportunities
Future Growth Opportunities Deep pipeline with strong potential to exceed risk- adjusted hurdle rates of return Advancing several projects in Nevada through the prefeasibility stage (PFS) Near Mine Orebody Mine Third Party Exploration(1) Extensions Expansions Opportunities Maximize Excellent
Slide 16: Cortez Camp / Goldrush
Cortez Camp / Goldrush Cortez Camp 18 Moz production to date 11 Moz reserves(1) 4.9 Moz M&I resources(1) 0.9 Moz inferred resources(1) Portal Cortez Hills Open and Conceptual untested Exploration Decline Goldrush 10 Moz M&I resources(1) 5.6 Moz inferred resources(1) (1) See final slide #4. 16
Slide 17: Pascua-Lama: Ramp-Down Completed
Pascua-Lama: Ramp-Down Completed Expect to incur costs of ~$0.30B(1) in 2014 Continuing to evaluate options to improve risk-adjusted returns (strategic partnerships, royalty/streaming deals) MoU with Chilean indigenous groups signed in May (1) See final slide #5. 17
Slide 18: Improving Financial Flexibility
Improving Financial Flexibility Focused on debt reduction to further enhance balance sheet flexibility Only $0.3B of debt maturing through 2015 and $1.0B through 2017 Scheduled Debt Repayments(1) 7.0 6.0 5.0 4.0 $1.0B 3.0 2.0 $0.3B 1.0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ (1) As
Slide 19: A Stronger, More Flexible Barrick
A Stronger, More Flexible Barrick Disciplined capital allocation framework continues to guide every decision Focus on operational excellence has resulted in lower cost guidance two years in a row Optimized portfolio has some of the world’s best assets Excellent pipeline of development projec
Slide 20: Footnotes
Footnotes 1. Adjusted net earnings, adjusted net earnings per share, adjusted operating cash flow, all-in sustaining costs per ounce (“AISC”), adjusted operating costs per ounce and C1 cash costs per pound are non-GAAP financial performance measures with no standardized definition under IFRS. See pa