Slide 1: Building Value in Everything We Do
Building Value in Everything We Do Goldman Sachs Basic Materials Conference May 2011
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 our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future perfor
Slide 3: Global Footprint
Global Footprint 2010 P&P Reserves North America North America 2011E Production 41% Australia Africa 9% Pacific North America 11% 44% South America 39% Africa 7% Australia Pacific South Africa 25% America South 24% America Australia Pacific Mine Project 1 Barrick’s Strategy Focus on adding value…
Slide 4: 2010 Operating Results
2010 Operating Results Gold Total Net Production Cash Costs(1) Cash Costs(1) Moz $US/oz 2% $US/oz 7.77 464 7.40 5% 464 457 457 5% 360 341 5 300 300 H1 09 H1 10 2009 2010 2009 2010 2009 2010 (1) See final slide #1 3 2010 Financial Results Realized Gold Gold Margin(1) Gold Margin(1) Price(1) Total Cas
Slide 5: 2010 Record Financial Results
2010 Record Financial Results Net Earnings Adjusted Adjusted Operating US$M Net Earnings(1) Cash Flow(1) US$M US$M 4,783 4783 65% 3,274 3,279 2,899 2899 81% 1,810 2009 2010 2009 2010 2009 Q2 09 2010 Q2 10 -4,274 Hedge Book Elimination (1) See final slide #1 5 Margin Expansion Total Cash Margins(1) ~
Slide 6: Leverage to Gold
Leverage to Gold 800% Barrick EPS & CFPS vs Gold Returns (US$) 700% Barrick’s adjusted 600% net earnings and ( = adjusted) cash flow growth 500% has significantly 400% outpaced the rise in gold prices(1) 300% 200% 100% (1) See final slide #1. All EPS figures are adjusted except Dec ‘04 is US GAAP
Slide 7: Q1 2011 Strong Financial Results
Q1 2011 STRONG FINANCIAL RESULTS Gold Realized Gold Gold Margin(1) Gold Margin(1) Production Price(1) Total Cash Cost Basis Net Cash Cost Basis Moz $US/oz $US/oz $US/oz 1,389 1389 1,081 2.06 1.96 1081 952 952 1,114 1114 25% 821 821 32% 722 722 32% 2009 2010 Q1 10 Q1 11 Q1 10 Q1 11 Q1 10 2009 Q1 11 2
Slide 8: Barrick's Strategy
Barrick’s Strategy Focus on adding value… Meet operational and financial targets to maximize benefits of rising metal prices Increase gold and copper reserves through exploration and selective acquisitions Invest in and develop high return projects Maximize the value of existing mines and pr
Slide 9: Gold Reserves and Resources
Gold Reserves and Resources(1) ounces millions 37.2 Replaced gold 34.8 31.6 Inferred industry’s largest 76.3 reserves for fifth 31.9 65.0 61.8 M&I consecutive year 24.9 50.6 Grew M&I 35.0 resources by 24% 138.5 139.8 139.8 12.4 123.1 124.6 P&P Grew inferred 17.6 resources by 18% 88.6 05 06 07
Slide 10: Barrick's Strategy Cortez Nevada
Barrick’s Strategy Focus on adding value… Meet operational and financial targets to maximize benefits of rising metal prices Increase gold and copper reserves through exploration and selective acquisitions Invest in and develop high return projects Maximize the value of existing mines and pr
Slide 11: Cortez Hills - Exceeds Expectations
Cortez Hills ‐ Exceeds Expectations Cortez Hills built on schedule Exploration Drilling Underground and budget Expanded Cortez operation exceeded 2010 guidance producing 1.14 Moz at total cash costs of $312/oz(1) Q1 2011 production of 366 K oz at total cash costs of $220/oz(1) Record of Deci
Slide 12: Pueblo Viejo Project Update
Pueblo Viejo DOMINICAN REP. 19 19 Pueblo Viejo Project Update Autoclave Plant Construction Commissioning expected in Q4 2011 and initial production in Q1 2012 – construction ~55% complete Pre-production capital expected to be ~$3.3-$3.5B (100% basis)(1) – ~80% of capital committed 625-675 Koz
Slide 13: Pueblo Viejo Value Added
Pueblo Viejo VALUE ADDED 2006 2011 13.4 M oz of reserves (1) 23.7 M oz of reserves (1) Modest economics Robust economics Technical challenges, Improved flowsheet, low recoveries increased recoveries – Au: 92% – Au: 92% – Ag: 5% – Ag: 87% – Cu: 0% – Cu: 79% FUTURE VALUE CREATION OPPORTUNI
Slide 14: Pascua-Lama Project Update
Pascua‐Lama Project Update Process Plant Construction Pre-stripping expected to in Argentina commence in Q4 2011 Initial production expected in H1 2013 Pre-production capital expected Tunnel progress to be ~$3.3-$3.6B(1) from Chile – >45% of capital committed 750-800 Koz at total cash costs
Slide 15: Projects The Next Generation
Projects THE NEXT GENERATION Cerro Casale, Chile (75%) Potential to be 1 M oz producer (100%) Gold Copper Barrick’s share of resources(1) Permitting preparation for EIA submission underway M oz B lbs Project update to be provided with Q2 results 18.9 8.4 Inferred Inferred Donlin Creek, Alaska
Slide 16: Overview of Equinox
Overview of Equinox Large copper producer with two major assets JABAL SAYID – 100% owned Lumwana mine in Zambia began operations in 2008 – 100% owned Jabal Sayid development project in Saudi Arabia(1) 323 Mlbs of copper production in 2010(2) 5.7 Blbs of copper reserves(3) LUMWANA 5.5 Blbs of
Slide 17: Investment Considerations
Investment Considerations Excellent copper fundamentals Currently producing Large resource with substantial upside in an excellent region Expansion potential Strong financials Available 29 Enhanced Growth Potential Barrick Gold Production Barrick+ Equinox Copper Production (Moz) (Mlbs) +
Slide 18: Contribution to 2010 Revenue
Contribution to 2010 Revenue(1) Barrick + Equinox Senior Peer Average 82% 81% Gold Gold 19% 18% Copper Copper & Other (1) See final slide #9 31 Barrick’s Strategy Focus on adding value… Meet operational and financial targets to maximize benefits of rising metal prices Increase gold and copper re
Slide 19: Corporate Social Responsibility
Corporate Social Responsibility First Canadian mining company to join the Voluntary Principles on Security & Human Rights CSR Advisory Board in development Independent director with CSR expertise Dow Jones Sustainability Index - World for 3rd year Nasdaq - world’s top 100 sustainable compa
Slide 20: 2011E Outlook
2011E Outlook Production 7.6-8.0 million ounces Total Cash Costs: $450-$480/oz(1) Net Cash Costs: $340-$380/oz(1) 9 million ounce production target within five years(2) (1) IFRS basis; net cash costs based on assumed realized copper price of $3.75/lb. See final slide #1 (2) See final slide #
Slide 21: Investment Case for Barrick
Investment Case for Barrick Excellent project pipeline Acquisition of Equinox will meaningfully contribute to earnings and cash flows Continue commitment to strong CSR practices Compelling valuation 37 FOOTNOTES Except as otherwise indicated, the information concerning Equinox contained in t