Slide 1: Barrick Gold Corporation – Indaba 2004
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson FORWARD LOOKING STATEMENT Certain statements included herein, including those regarding production, costs, development schedules and other statements that express management’s expectations or estimates of our future performance, constitute “forwa
Slide 2: Gold Price Performance
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson “… “…gold goldhas hasbeen beenininaabull bullmarket marketsince sinceApril April2001, 2001,rising rising more than 50 percent in that time.” more than 50 percent in that time.” “It “Itisisnot notaabad badidea ideato tolisten listentotothose those
Slide 3: Corporate Objectives
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson CORPORATE OBJECTIVES VISION To be the global industry leader STRATEGY Exploit our size, international experience and financial strength to replace/increase our reserves and production EXECUTION At operating mines Advance development proje
Slide 4: Geopolitical Diversity
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson NORTH AMERICA Eskay Creek Geopolitical Diversity Hemlo Holt-McDermott Meikle Betze-Post 2003E 2002 Round Mt. PRODUCTION RESERVES 30% 59% 42% 15% SOUTH AMERICA EAST AFRICA 17% 18% 13% 6% Tulawaka Bulyanhulu AUSTRALIA Alto Chicama Pierina Plutonic
Slide 5: Execution – Development Projects
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson EXECUTION – Development Projects ALTO CHICAMA, PERU POTENTIAL Reserves: 7.2 Moz Production est: 540,000 oz Average cash cost est: $135/oz PLAN Open pit - crushing/leaching Capital costs est: $340M EXECUTION – Development Projects TULAWA
Slide 6: Execution – Development Projects (Pascua-Lama)
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson EXECUTION – Development Projects PASCUA-LAMA, CHILE/ARGENTINA Open pit with oxide and sulphide processing facilities 2003 focus: optimization of the development plan by first half 2004 Expect production in 2008 Working hard to bring this
Slide 7: Reserve Replacement
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson RESERVE REPLACEMENT RESERVE GROWTH THROUGH ACQUISITION AND EXPLORATION proven and probable – millions of ounces Exploration 87 71 20 Acquisitions 4 46 46 Divestitures 1990 2002 Total Mined Overall finding cost $11/oz On-property finding cost
Slide 8: Execution – Exploration Strategy
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson EXECUTION – Exploration Strategy More than 95 projects in 9 countries > 2 million ounce gold deposits 6 high priority countries (Peru, Chile, Argentina, USA, Tanzania, Australia) EXPLORATION & BUSINESS DEVELOPMENT Optimize 2004E = $100M c
Slide 9: Bulyanhulu District – Buly South
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson Lake Victoria BULYANHULU DISTRICT – Buly South 2004 Exploration Program Imweru Kabanga Bulyanhulu Tulawaka Kakindu Buly South Siga Hills Chocolate Reef Golden 100km Pride West GOLDSTRIKE – Carlin Trend, Nevada 2003 Exploration North pit drilling
Slide 10: Alto Chicama Regional Targets
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson C A J A M A R C A ALTO CHICAMA REGIONAL TARGETS GOITOS LAGUNAS Piedra Grande NW Huamachuco 1,350 sq. km L A L I B E R T A D Otuzco LAGUNAS Genusa Lagunas Norte Lagunas La Capilla Lagunas West Sur 8° Quiruvilca Tres Cruces ALUMBRE 0 10 20 URURUPA
Slide 11: Resources to Execute Strategy
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson RESOURCES TO EXECUTE STRATEGY FINANCIAL “A” rated balance sheet – $1 B in cash – no net debt Capable of self-financing our development program without equity dilution HEDGING – Policy Change Hedging – Working as intended Adopted No-Hedge
Slide 12: NAV Valuation
BARRICK GOLD CORPORATION INDABA 2004 Alex J. Davidson NAV VALUATION Barrick is trading at a discount on P/NAV basis PRICE TO NAV ANALYSIS (US$) Firm – gold price assumed Barrick Newmont Citigroup Smith Barney - $380 1.66 1.50 BMO Nesbitt Burns - $426 1.02 1.43 CIBC - $375 2.27 2.74 CSFB - $392 2.0