Barrick Mining Corporation · TSX:ABX
Barrick Mining — Corporate Update (July 2019)
24 slides from Barrick Mining's corporate update, Jul 15, 2019
Slide 1: Lumwana…working against all odds to achieve production target safely and sustainably
Africa & Middle East Lumwana…working against all odds to achieve production target safely and sustainably
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: Safety, Health & Environment…Q2 2019
Safety, Health & Environment…Q2 2019 One (1) Lost Time Injury recorded Corrective action taken and closed LTIFR/million hours worked LTIFR of 0.40 vs 0.36 in Q2 2018 0,60 ISO 45001 training took place and gap assessment audit analysis to be completed in Q3 0,50 Fatality Prevention Commitments (FPC’s
Slide 4: Safety, Health & Environment…Q2 2019
Safety, Health & Environment…Q2 2019 HIV Q2 HIV Prevalence Rates Comparisons Prevalence rate of 4.19% YTD 2019 compared to 6.52% YTD in 18 2018 15,67 16 Voluntary counselling and testing are being conducted on site with 14 12 620 tested,26 positive for 2019 YTD and 460 tested with 30 positive 10 for
Slide 5: Lumwana Copper Mine…
Lumwana Copper Mine… Lumwana workforce Copper Production (Mlbs) 3% 350 2 500 300 287 271 2 000 258 260 256 250 225 223 214 1 500 200 179 97% Mlbs 150 1 000 Zambian nationals Expats 100 500 50 0 - 48% 2011 2012 2013 2014 2015 2016 2017 2018 2019 52% Yearly Production Cummulative Production (Mlbs) Lum
Slide 6: Lumwana Mining Company… North West Province
Lumwana Mining Company… North West Province Chimiwungo Deposit Two main ore shoots; Roan (west) and Equinox (east) recognized as extensional anti-form structures. Copper CN2 mineralisation usually located on flanks of apex Chimiwungo North Fault Mineralization extends 7km east-west & 5km north-south
Slide 7: Lumwana Mining Company… North West Province
Lumwana Mining Company… North West Province 2019-Chimiwungo North Stage 2 (CN2) – Roan Shoot Program design; 6 Holes totaling 1,705m. Estimated cost US$331K Program design; 9 Holes totaling 861m. Estimated Cost US$366K CW6 located north of Chimiwungo South Fault CN2 cut-back located on eastern and s
Slide 8: Lumwana Mining Company… North West Province
Lumwana Mining Company… North West Province 2020-2021 Chimiwungo East Stage 3-7 – Equinox Shoot Program design; 97 holes totaling 31,325m. Estimated cost 2020 US$2.9M & 2021 US$2.9M CE3-7 located north of Chimiwungo South Fault Mineralisation located on Equinox Shoot Drilling aimed to better define
Slide 9: Lumwana Mining Company… North West Province
Lumwana Mining Company… North West Province Mwombezhi Dome, North West Province Greenfield Projects 2019 Pegasu Desk- s Top Study Areas
Slide 10: Q2 2019…progress/risks towards delivering on business plan
Q2 2019…progress/risks towards delivering on business plan Continued with skills development for Zambian management and technicians Production at risk due to various operational challenges Zesco energy supply Pending GST implementation VAT refunds (cashflow) Concentrate treatment in-country – altern
Slide 11: Barrick investment in Zambia…
Barrick investment in Zambia… Barrick investment in Zambia ($mil) Since 2011, Lumwana has contributed 1 400 6 000 more than US$5,6 billion to Zambia’s 5 636 economy: 1 200 5 000 US$876 million – in taxes and royalties 1 000 paid to the Zambian Government 512 4 000 US$3 billion – in goods and service
Slide 12: Capital Investment into Lumwana…
Capital Investment into Lumwana… Cumulative capital Investment ($mil) Taxes paid from 2011 to 2018 ($mil) 1 664 7 1 509 16 104 1 371 1 267 1 163 130 439 984 793 180 280 2011 2012 2013 2014 2015 2016 2017 2018 CIT MRT PAYE VAT WHT Customs $1,7 billion invested in the business over the past 10 Royalti
Slide 13: Barrick's investment and benefits to government…
Barrick’s investment and benefits to government… 2 000 $800 million injected into LMC in 1 664 loan finance 1 500 $480 million of the loan was converted to equity from acquisition 1 000 876 to date $1.7 billion invested in the business 500 since 2011 with no dividend paid out to Barrick - 2011 2012
Slide 14: Lumwana's contribution to local suppliers and communities…
Lumwana’s contribution to local suppliers and communities… Cumulative Total Spend on local suppliers Cumulative total spend on local community suppliers $'000 $million 44 214 3 096 39 684 2 780 36 008 2 488 32 603 2 251 1 979 27 252 1 625 22 140 1 132 14 684 493 4 579 2011 2012 2013 2014 2015 2016 2
Slide 15: Supplier spend profile…Q1 2019
Supplier spend profile…Q1 2019 Over $3.2 million spent on local C1 (chiefdom) suppliers during Q1 2019 Over $6.5 million spent on local C2 suppliers during Q1 2019 Over $123 million spent on local C3 suppliers during Q1 2019 Over $21.7 million spent on SADC suppliers during Q1 2019 Over $10.4 millio
Slide 16: Smelter Market Landscape
LMC Delivery Distribution Smelter Market Landscape annum (Tons of Concentrate) Lumwana 0 20,100Tons Copper Mine Konkola Copper Mines (KCM) Nchanga Smelter Chambishi Copper Smelter (CCS) Kansanshi Copper Smelter Mopani Copper Mine (MCM) Mufulira Smelter 338,850Tons 66,100Tons Zambia’s five smelters s
Slide 17: LMC Employees and Contractors…
LMC Employees and Contractors… Expat Expat Employees Contractors 43 (1%) 58 (2%) National Contractors 2083 (56%) National Employees 1530(41%) Nationals : 97% Expatriates: 3%
Slide 18: LMC workforce…97% Zambian
LMC workforce…97% Zambian National Expatriates Employees 43 (3%) 1530(97%) NATIONALS VS EXPATS Nationals Expats 8 Expats currently serving notice of Termination of Contract – The number to reduce 161 113 101 70 60 57 to 35 by end of August 63 43 2019 119 127 1791 1837 1759 1707 1799 1671 1624 1530 1
Slide 19: Outstanding legal and fiscal issues…we remain committed to amicable solutions
Outstanding legal and fiscal issues… we remain committed to amicable solutions Currently engaging with Government on: Impact of 2019 fiscal regime on Lumwana as a low-grade operation (need to consider the case of low-grade miners) Getting recently concluded Environmental Impact Assessment for recove
Slide 20: Community Relations highlights: Lumwana makes a difference…Q1 2019
Community Relations highlights: Lumwana makes a difference…Q1 2019 Grievances and Engagement 3 grievances were received, of which 1 was resolved as at end of Q1 Outstanding grievance - No new engagements were made with the 102 residents of Kakaindu regarding their alleged cracked houses. Discussions
Slide 21: Community Relations highlights: Lumwana makes a difference…Q1 2019
Community Relations highlights: Lumwana makes a difference…Q1 2019 Complementary budget support from partnerships in education, livelihoods and gender based violence programs Improved communications outlook with media partnerships, business exhibition, project hand overs Improved engagement with key
Slide 22: Progress on Community Projects…
Progress on Community Projects… S/N Project Progress Timeframe Commentary 1 Mukumbi Poultry House 95% Q1 2019 Building done – Awaits birds & feed 2 Mukumbi Hammerhill House 95% Q1 2019 Building done – Awaits Hammerhill 3 Mutanda Abattoir 90% Q2 2019 Building done – Awaits equipment 4 Matebo 1x3 Clas
Slide 23: Community project photos
Mukumbi Poultry House Mukumbi Hammermill Incinerator at Holy Family Lumwana Police Housing Matebo 1x3 Classroom block Project Mumena Welfare Centre Mukumbi Desk project Matebo RHC Mukumbi School Laboratory
Slide 24: Technical Information
Technical Information The scientific and technical information contained in this presentation has been reviewed and approved by Simon Bottoms, CGeol, MGeol, FGS, MAusIMM, Mineral Resources Manager: Africa and Middle East, a “Qualified Person” as defined in National Instrument 43-101 – Standards of D