Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Investor Day (November 2018)
110 slides from Barrick Mining's investor day presentation, Nov 16, 2018
Slide 1: New Barrick
NEW BARRICK A new champion for long-term value creation Investor Days…Nov 2018 1
Slide 2: Cautionary Statement on Forward-Looking Information
Cautionary Statement on Forward-Looking Information… Barrick Gold Corporation Certain information contained in this presentation, including any information as to Barrick’s strategy, projects, plans or future financial or operating performance, constitutes “forward-looking statements”. All statements
Slide 3: Disclaimer – Randgold Resources
Disclaimer…Randgold Resources CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of
Slide 4: The New Barrick
The New Barrick… Striving to be the world’s most valued gold mining business by finding, developing and owning the best assets, with the best people, to deliver sustainable returns for our owners and partners… Mark Bristow
Slide 5: Mining is about geology and orebodies
Mining is about geology and orebodies… Quality of reserves = value It’s about how much we can add to reserves Value production Discovery and development development build real value discovery exploration Time
Slide 6: Executing our strategy across the value chain
Its all in how we execute our strategy across the value chain.. BOARD Financial Strategy HS&E, Sustainability ‘we are all Legal & Compliance accountable’ Human Resources Commercial & Supply Chain Corporate Communications Exploration Evaluation Capital Projects Profitable Process Operations Owns the
Slide 7: Scenario planning is critical to our business
Scenario planning is critical to our business… Gold Price $1400/oz Scenario Scenario 1 2 Disabling Politics and Enabling Politics and Social Environment Social Environment Scenario Scenario 3 4 Gold Price $1000/oz
Slide 8: We invest in people and communication
We invest in people and communication… Communication with shareholders – consistent quarterly engagement with shareholders as well as an annual roadshow, site visit and our investor days every 2 years In-Country communication – media briefings and ministry meetings every quarter in our host countrie
Slide 9: A proven management team committed to value creation
A proven management team committed to value creation… John Thornton New Barrick Executive Chairman Board of Directors Mark Bristow President and CEO Kevin Thomson COO Graham Shuttleworth COO COO SEVP Strategic Catherine Raw Mark Hill Willem Jacobs Rodney Quick Rob Krcmarov SEVP CFO Matters North Lat
Slide 10: North America
North America Catherine Raw COO North America
Slide 11: Barrick North America
Barrick North America Donlin Gold (50%) Gold assets Copper Assets Greenfields Projects Hemlo Golden Sunlight Turquoise Ridge (75%) Barrick Nevada (Goldstrike & Cortez) Goldrush/ Fourm ile 43% of Barrick’s 2017 production Jabal Sayid (50%) 35% Barrick’s 2017 M&I resources Pueblo Viejo (60%) Loulo
Slide 12: Regional Strategy
Regional Strategy 2019 Focus Areas – Improve operational performance – Improve orebody knowledge – Deliver on project execution – Progress and build on project pipeline – Reduce overheads – Develop holistic Nevada strategy Projects in Execution Current Status Capex 2017 2018 2019 2020 2021 2022 2023
Slide 13: Nevada Endowment
Nevada Endowment nae ye RANDGOLD RESOURCES < ‘Companies ne Barrick © Operating © Construction = Neamont ries 1B McEwen Mining 4 SSR Mining ) | Waterton Global Resources ¥ io Gold Hecle Mining ‘Lincoln Hill-Gold Ridge z eather Corvus Gol Fiore Gola old Standard Ventures 5 Liberty Gold ™ Sprott Mining
Slide 14: Barrick's Nevada operations in context
Barrick’s Nevada operations in context Twin Creeks Turquoise Ridge Goldstrike (Barrick Nevada) Carlin North (Carlin Operations) Long Canyon Lone Tree Carlin South (Phoenix) (Carlin Operations) Boulder Valley Road Emigrant Dunphy terminal (Carlin Operations) Phoenix Robertson Railroad-Pinion (Cortez
Slide 15: Unlocking Nevada's Potential
Unlocking Nevada’s Potential Cortez Property CURRENT ORE SOURCES Goldstrike Property Cortez Goldstrike Stockpiles Cortez UG Cortez OP Goldstrike OP Goldstrike UG Stockpiles Roaster Roaster CURRENT PROCESSING OPTIONS Oxide NEVADA Autoclave PROCESS Heap Leach Oxide Mill/CIL Autoclave EXPANSION Heap Le
Slide 16: Barrick Nevada
Barrick Nevada Operating Results 2017 Reserves2 Proven Probable Total Contained4 2015A 2016A 2017A 2018 9m Goldstrike 6.0Moz 2.4Moz 8.4Moz (3.46g/t, 54.0Mt) (5.44g/t, 13.8Mt) Gold Production (koz) 2,052 2,155 2,312 1,480 Cortez 0.9Moz 9.2M oz 10.1Moz COS (US$/oz) 782 876 792 828 (1.46g/t, 19.1Mt) (1
Slide 17: Turquoise Ridge (75%)
Turquoise Ridge (75%) Operating Results 2017 Reserves2 Proven Probable Total Contained4 2015A 2016A 2017A 2018 9m Turquoise Ridge (75%) 3.5Moz 2.3Moz 5.9Moz (15.56g/t, 7.1Mt) (15.48g/t, 4.7Mt) Gold Production (koz) 217 266 211 194 COS (US$/oz) 697 603 715 777 2017 Resources2 Measured Indicated M&I A
Slide 18: Hemlo
Hemlo Operating Results 2017 Reserves2 Proven Probable Total Contained 2015A 2016A 2017A 2018 9m Hemlo 0.1Moz 1.7Moz 1.8Moz (3.66g/t, 0.9Mt) (2.16g/t, 24.0Mt) Gold Production (koz) 219 235 196 119 COS (US$/oz) 887 795 986 1186 2017 Resources2 Measured Indicated M&I AISC (US$/oz)1 895 839 1092 1321 H
Slide 19: Donlin Gold (50%)
Donlin Gold (50%) 2017 Resources1 Measured Indicated Measured & Indicated Inferred Donlin Gold (50%) 0.3Moz 19.2Moz 19.5Moz 3.0Moz (2.52g/t, 3.9Mt) (2.24g/t, 266.8Mt) (2.02g/t, 46.1Mt) Ownership: Barrick and NovaGold (50% each) Project Location: Located 450 km W of Anchorage, Alaska. Remote proj
Slide 20: Latin American & Australia Pacific Operations
Latin American & Australia Pacific Operations Mark Hill COO Latin America and Australia Pacific
Slide 21: Organizational Structure
Organizational Structure COO LATAM & Australia Pacific Site General Chief Financial Mineral Resource Legal & Joint Country Managers Project Director Managers Officer Manager Ventures Pueblo Viejo Lagunas Norte ARGENTINA Pierina Porgera PERU CHILE KCGM Zaldívar Norte Abierto Legend Pascua-Lama Velade
Slide 22: Regional Strategy
Regional Strategy 2019 Key Focus Areas Operational Excellence Drive down cost structure Veladero Improve LTO in Latin America and Develop into a Tier 1 asset post phase 6 PNG expansion Divestment of non core assets Pueblo Viejo Pursue organic growth opportunities Increase LOM margins by
Slide 23: Pueblo Viejo
Pueblo Viejo1 Historical Operating Results (60%) 2017 Reserves3 (60%) 2015A 2016A 2017A Q3/18 YTD Proven 5.3 Moz (2.67 g/t, 62.1M tonnes) Gold Production (koz) 572 700 650 415 Probable 1.9 Moz (3.06 g/t, 19.2M tonnes) Gold Cost of Sales ($/oz) 881 564 699 775 2017 Resources3 (60% - exclusive of 2P)
Slide 24: Veladero
Veladero Historical Operating Results (50%)1 2017 Reserves3 (50%) 2015A 2016A 2017A Q3/18 YTD Proven 0.3 Moz (0.72 g/t, 14.2M tonnes) Gold Production (koz) 1 602 544 432 201 Probable 2.5 Moz (0.78 g/t, 99.7M tonnes) Gold Cost of Sales ($/oz) 792 872 897 1,027 2017 Resources3 (50% - exclusive of 2P)
Slide 25: Zaldivar
Zaldivar Historical Operating Results (50%)1 2017 Reserves3 (50%) 2015A 2016A 2017A Q3/18 YTD Proven 1,440 Mlb (0.49 %, 132.5M tonnes) Cu Production (Mlb) 1 218 114 114 75 Probable 970 Mlb (0.54 %, 81.8M tonnes) Cu Cost of Sales ($/lb) 1.97 1.93 2.15 2.55 2017 Resources3 (50% - exclusive of 2P) Cu C
Slide 26: Lagunas Norte
Lagunas Norte Historical Operating Results 2017 Reserves2 2015A 2016A 2017A Q3/18 YTD Proven 1.8 Moz (2.23 g/t, 25.7M tonnes) Gold Production (koz) 560 435 387 195 Probable 2.2 Moz (2.27 g/t, 29.7M tonnes) Gold Cost of Sales ($/oz) 669 651 617 639 2017 Resources2 (exclusive of 2P) Gold Cash Costs ($
Slide 27: Porgera
Porgera Historical Operating Results (47.5%)1 2017 Reserves3 (47.5%) 2015A 2016A 2017A Q3/18 YTD Proven 0.2 Moz (9.21 g/t, 0.6M tonnes) Gold Production (koz) 1 436 234 235 134 Probable 1.9 Moz (4.56 g/t,12.6M tonnes) Gold Cost of Sales ($/oz) 881 836 944 1,129 2017 Resources3 (47.5% - exclusive of 2
Slide 28: KCGM
KCGM Historical Operating Results (50%) 2017 Reserves2 (50%) 2015A 2016A 2017A Q3/18 YTD Proven 2.2 Moz (0.89 g/t, 75.1M tonnes) Gold Production (koz) 320 376 368 256 Probable 1.7 Moz (2.21 g/t, 23.9M tonnes) Gold Cost of Sales ($/oz) 973 762 806 870 2017 Resources2 (50% - exclusive of 2P) Gold Cash
Slide 29: Major Latin America Projects
Major Latin America Projects Alturas – Improving Project Returns Focus of 2018 season is to improve geological understanding of high grade and shallow ore body areas Define mineral inventory of the Del Carmen prospect Re-evaluate project potential through a new scoping study in 2019 with the h
Slide 30: Africa and Middle East
Africa and Middle East… Willem Jacobs COO Africa and Middle East
Slide 31: African and Middle Eastern mine locality
African and Middle Eastern…mine locality COO AFRICA GM GM CFO Operations Country Operations MRM AFRICA Central & Managers West Africa East Africa Saudi Arabia Jabal Sayid Mali Kibali Senegal Loulo Massawa Gounkoto Morila North Mara DRC Bulyanhulu Tongon Buzwagi Côte d’Ivoire Tanzania Lumwana
Slide 32: Regional strategy
Regional strategy… 2019 Key Focus Areas Operational Excellence Engage with newly elected DRC Government on Deliver guidance for all operations on safety, reform of 2018 Mining Code production, cost and resource conversion Engage with Zambian Government on 2018 Mining Code Negotiate and implement set
Slide 33: Kibali gold mine, DRC
Kibali gold mine, DRC… Historical Operating Results (45%) 2017 Reserves (45%) 2015A 2016A 2017A Q3/18 YTD Proven 1.1 Moz (4.1 g/t, 8.6Mt) Gold Production (koz) 289 264 268 269 Probable 2.8 Moz (4.1 g/t, 21.1Mt Total Cash Costs ($/oz)* 604 736 773 623 2017 Resources (45%) Key points Measured 1.3 Moz
Slide 34: Loulo-Gounkoto gold complex, Mali
Loulo-Gounkoto gold complex, Mali… Historical Operating Results (100%) 2017 Reserves (100%) 2015A 2016A 2017A Q3/18 YTD Proven 2.4 Moz (4.1 g/t, 18.1Mt) Gold Production (koz) 630 707 730 468 Probable 5.8 Moz (4.8 g/t, 38.0Mt) Total Cash Costs ($/oz)* 675 563 543 649 2017 Resources (100%) Measured 3.
Slide 35: Tongon gold mine, Côte d'Ivoire
Tongon gold mine, Côte d’Ivoire... Historical Operating Results (100%) 2017 Reserves (100%) 2015A 2016A 2017A Q3/18 YTD Proven 0.5 Moz (2.2 g/t, 7.0Mt) Gold Production (koz) 243 261 289 149 Probable 0.7 Moz (2.5 g/t, 9.3Mt) Total Cash Costs ($/oz)* 836 771 676 804 2017 Resources (100%) Measured 0.6
Slide 36: Morila mine, Mali
Morila mine, Mali… Historical Operating Results (40%) 2017 Reserves (40%) 2015A 2016A 2017A Q3/18 YTD Probable 0.1 Moz (0.6 g/t, 11.0Mt) Gold Production (koz) 49 22 28 22 2017 Resources (40%) Total Cash Costs ($/oz)* 674 1113 988 1065 Measured 0.1 Moz (0.26 g/t, 16.0Mt) Key points Government endorse
Slide 37: Lumwana copper mine, Zambia
Lumwana copper mine, Zambia… Historical Operating Results (100%) 2017 Reserves2 (100%) 2015A 2016A 2017A Q3/18 YTD Proven 362.9 Mlb (0.50 %, 32,711Mt) Cu Production (Mlb) 287 271 256 159 Probable 4 651.1 Mlb (0.57 %, 368,685Mt) Cost of sales ($/lb) 1.42 1.16 1.57 2.22 2017 Resources2 (100% - exclusi
Slide 38: Jabal Sayid copper mine, Saudi Arabia
Jabal Sayid copper mine, Saudi Arabia… Historical Operating Results (50%) 2017 Reserves2 (50%) 2015A 2016A 2017A Q3/18 YTD Proven 291.5 Mlb (2.38 %, 5,556Mt) Cu Production (Mlb) 6 30 43 40 Probable 334.9 Mlb (2.42 %, 6,282Mt) Cost of sales ($/lb) - 1.98 1.90 1.73 Cu Cash Costs ($/lb)1 - 1.97 1.70 1.
Slide 39: Technical Information Endnotes
Technical Information The scientific and technical information contained in this presentation has been reviewed and approved by Geoffrey Locke, P. Eng., Manager, Metallurgy of Barrick, Rick Sims, Registered Member SME, Vice President, Reserves and Resources of Barrick; and Robert Krcmarov, FAusIMM,
Slide 40: Appendix A – Cash costs and all-in sustaining costs
APPENDIX A Note 1 “Cash costs” per ounce and “All-in sustaining costs” per ounce are non-GAAP financial performance measures. “Cash costs” per ounce starts with cost of sales applicable to gold production, but excludes the impact of depreciation, the non-controlling interest of cost of sales, and in
Slide 41: Reconciliation of Cost of Sales to AISC (2016)
Reconciliation of Cost of Sales to AIC ( milions, except per ounce information n dollars) For the year ended Decertber 31, 2016 Barrick Turquoise Pueblo Tagunas Golden Footnote _Nevada Ridge Viejo Veladero__Norte_Acacia__Hemrio_Sunlight_Porgera Kalgoorie (Cost of sales related to gold production $1,
Slide 42: Reconciliation of Cost of Sales to AISC (2017)
Reconciliation of Cost of Sales to AIC (S milions. except per ounce information in dollars) For the year ended December 31. 2017 Barrick Turquse Pueblo Tagunas ‘Golden Footnote _ Nevada Ridge Viejo Veladero__Norte_Acacia__Hemio _Sunlght_Forgera Kalgoorlie Cost of sales related to gold producton $196
Slide 43: Reconciliation of Gold Cost of Sales to Cash Costs, AISC and AIC
Reconciliation of Gold Cost of Sales to Cash Costs, all-in Sustaining Costs and All-in Costs. including on a per ounce basis, by operating segment (S milions. except per ounce information in dollars) For the nine months ended September 30, 2018 Barrick Turquoise Pueblo Tagunas Golden Footnote Nevada
Slide 44: Footnotes
Footnotes 41. By-product erodts Revenues include the sale of by-products for our gold mines and energy sales fromthe Monte Rio power plant at our Pueblo Vie Mine forthe rine months ended September 30, 2018 of Sn (year ended December 31, 2017: Sni, 2016; $33 milo, 2015: $74 mon). 2 Nonrocuring toms “
Slide 45: C1 cash costs and all-in sustaining costs per pound
Note 2 “C1 cash costs” per pound and “All-in sustaining costs” per pound are non-GAAP financial performance measures. “C1 cash costs” per pound is based on cost of sales but excludes the impact of depreciation and royalties and includes treatment and refinement charges. “All-in sustaining costs” per
Slide 46: Financial Review
Financial Review Graham Shuttleworth SEVP & CFO
Slide 47: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation has been prepared solely for information and for use in connection w
Slide 48: Disclaimer – Forward Looking Statements
Disclaimer FORWARD LOOKING STATEMENTS This presentation (including information incorporated by reference in this presentation), oral statements made regarding the Merger, and other information published by Barrick and Randgold contain statements which are, or may be deemed to be, “forward-looking st
Slide 49: New Barrick – Leading Market Position
New Barrick – Leading Market Position Based on Barrick and Randgold’s current combined market capitalisation, New Barrick would rank as one of the top 25 largest firms listed on the TSX Further, New Barrick would solidify its position as the largest miner on the exchange, by a considerable margin, a
Slide 50: Industry Leading Metrics Among Senior Gold Peers
Industry Leading Metrics Among Senior Gold Peers Annual Adjusted EBITDA1,6 Adjusted EBITDA Margin1,6 Lowest Total Cash Cost2,6 New Barrick $4.7 New Barrick 49% New Barrick $611 Newmont $2.7 Agnico 41% Newcrest $749 Goldcorp $1.3 Newcrest 39% Newmont $760 Newcrest $1.3 Goldcorp 38% Agnico $768 Agnico
Slide 51: Proven Financial Discipline
Proven Financial Discipline Total Barrick Debt (US$bn) Barrick reduced total debt by ~$10B in just over 5 years $13.1 S&P and Moody’s upgraded Barrick credit rating in first quarter of 2018 $10.0 Merger described as “credit positive” by S&P and Moody’s $7.9 $6.4 $6.4 $5.7 5.76 4.0 YE YE YE YE Q2 Q3
Slide 52: Strong Balance Sheet
Strong Balance Sheet Leading Adjusted EBITDA Margin1 and Strong Balance Sheet Net Debt & Gross Debt to 2017 Adjusted EBITDA1,3,4 Combined Barrick Randgold New Barrick New Barrick 0.7x 1.2x Enterprise Value2,3 $20.7 $7.3 $27.9 (US$bn) Newmont 0.4x 1.5x Revenue4 $8.3 $1.3 $9.6 (US$bn) Adjusted EBITDA1
Slide 53: Liability Management
Liability Management Barrick’s Debt Maturities 1 – As of September 30, 2018 (US$m) ~$0.7 billion remains due before 2033 2015 repayments $5.1bn 2016 repayments $1,600 2017 repayments 2018 repayments to date Remaining debt maturities $1,200 Over 85% (~$5bn) of Barrick’s debt matures $800 subsequent t
Slide 54: Revolving Credit Facility
Revolving Credit Facility Barrick has just completed an amendment and extension to its undrawn revolving credit facility agreement: Right-sizing of facility from $4 billion to $3 billion Extension of the termination date to January 2024 Reduction in drawn and undrawn pricing Drawn pricing at current
Slide 55: Dividends
Dividends Barrick expects to pay a dividend of US$0.16/share with respect to 2018 financial year This represents a 33% increase on the 2017 dividend Barrick intends to grow its dividend over time underpinned by stronger cash flow generation, additional overhead cost savings, asset sale proceeds and
Slide 56: Decentralisation and Accountability
Decentralisation and Accountability G&A Per Ounce Comparison (US$/oz) Randgold has developed a very successful $50 management structure and ethos over 23 years $45 There is a significant opportunity at New Barrick to instil: $40 More accountability at the operations $35 Heightened capital discipline
Slide 57: Supply Chain Philosophy
Supply Chain Philosophy Target number of Working with supply months stock of 1.5x partners/suppliers to for key consumables reduce overall cost and reagents Decentralized supply chain operation with centralized strategic sourcing group Empower our people with Focus on collaborative supply chain know
Slide 58: Working Capital Management
Working Capital Management Days Inventory Outstanding (DIO) Randgold’s disciplined 160 days management of inventory, stockpiles and logistics is among 140 days the best of the Senior Gold 132 days 120 days Peers 100 days Applying these best-practices to Barrick’s business has potential 80 days 78 da
Slide 59: Supply Chain Opportunities
Supply Chain Opportunities Strategic sourcing of global commodities to leverage economies Input Cost Crystalize synergies with major mobile equipment OEM’s Consolidation of current supplier base across the organisation Scalability Optimize the use of systems to support efficient, scalable supply
Slide 60: Leading edge not bleeding edge technology
IT - Philosophy Connectivity is everything - focus on LAN and WAN improvement programs and speed of connectivity / latency at remote sites Less is more - drive to reduce IT infrastructure footprint and move key workloads from sites and central datacenters to the cloud Outsource all non essential or
Slide 61: Connectivity is everything
Connectivity is everything Key focus for 2018 was upgrading core network infrastructure: Bandwidth upgraded at every single office and mining site Cutting edge SD-WAN technology implemented which makes it possible to combine links from different providers to provide a much more reliable and flexible
Slide 62: Way forward and immediate next steps
Way forward and immediate next steps Immediate focus on integration of business processes : Simplification of the underlying business processes and alignment on management information and reporting Maintain existing ERP systems and upgrade software to latest releases Identify non-critical or duplica
Slide 63: Transaction Timeline
Transaction Timeline Announcement Filing of shareholder Jersey Court Effective Date Barrick and Randgold circulars / scheme Hearing Shareholder Meetings document 24 Sep 2018 4 Oct 2018 Early Nov 2018 17 Dec 20181 1 Jan 20191,2 (indicative) (indicative) 18 Dec 20181 28 Dec 20181 11 Jan 20181 Declarat
Slide 64: Market Reaction Since Announcement
Market Reaction Since Announcement Strong shareholder and market support More than 99% of votes cast at the Barrick shareholder meeting voted in favour of the merger Randgold experienced record voting levels with the majority vote of 95% comfortably clearing the required hurdle of 75% Relative Share
Slide 65: Technical Information
Technical Information The technical and scientific information contained in this presentation in respect of Randgold has been reviewed and approved for release by Simon Bottoms and Rodney Quick, Randgold’s Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Minera
Slide 66: Endnotes
Endnotes 1. “Total cash cost per ounce” is based on data from Wood Mackenzie as of 31 August 2018. Financial comparisons between the New Barrick Group and its Senior Gold Peers are made on the basis of the data presented by Wood Mackenzie to ensure that consistent measures are used in comparing asse
Slide 67: Appendix A – Total Cash Costs
Appendix A Total Cash Costs Randgold uses the term “total cash costs1”, which is a non-GAAP financial performance measure, calculated using guidance issued by the Gold Institute. The Gold Institute was a non-profit industry association comprising leading gold producers, refiners, bullion suppliers a
Slide 68: Appendix A – Cash costs per ounce
Appendix A Barrick uses the term “cash costs per ounce1” for the most comparable measure to “total cash costs”. Cash costs per ounce is a non-GAAP financial performance measure which is calculated based on the definition published by the World Gold Council (“WGC”) (a market development organization
Slide 69: Appendix A – Combined total cash cost per ounce
Appendix A For purposes of presenting a combined total cash cost figure for the New Barrick Group, a reconciliation of Barrick’s cash costs per ounce to total cash costs was undertaken. The reconciliation calculation is set out below. Barrick cash costs ($millions) 1 $ 2,790 add back Barrick non-con
Slide 70: Appendix A – Adjusted EBITDA
Appendix A Adjusted EBITDA “EBITDA” is a non-GAAP financial performance measure, which excludes the following from net earnings: (i) income tax expense; (ii) finance costs; (iii) finance income; and (iv) depreciation. Barrick and Randgold believe that EBITDA is a valuable indicator of their ability
Slide 71: Appendix A – Adjusted EBITDA Margin
Appendix A Adjusted EBITDA Margin “Adjusted EBITDA Margin” is calculated by dividing Adjusted EBITDA by revenue. Barrick and Randgold use “Adjusted EBITDA margin” because they believe that this non-GAAP financial performance measure is an important indicator of recurring operations, as it excludes i
Slide 72: Global Exploration
Global Exploration Rob Krcmarov EVP Exploration and Growth • Investor Day | November 2018
Slide 73: New Barrick – Top Tier One Gold Assets
New Barrick 5 out of the Top 10 Tier One Gold Assets (> 500 koz; > 10 year mine life; bottom half of cost curve)2 Top 10 Global Tier One Gold Assets By Total Cash Cost1,2 (US$/oz) New Barrick Asset $675 $697 $621 $623 $649 $552 $578 $580 $482 $426 Cortez Sukari Olimpiada Loulo-Gounkoto Cadia Merian
Slide 74: New Barrick – Exploration Powerhouse
New Barrick- Exploration Powerhouse $12,000 200 Industry Exploration Spend (Au) New Barrick Discoveries $10,000 Gold discovered 3 year average (000's oz) 150 $8,000 $6,000 100 $4,000 50 $2,000 0 $0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20
Slide 75: Strong credible track record
Strong credible track record Reserves (Moz of gold)1 NEW BARRICK1 152 ~78 Spent $4.36B on exploration2 Value Generation from Overall finding cost ~$28/oz Organic Growth through exploration 20 Total found 1990 2017 35 113 DIVESTED acquired mined Total Total 1. See Endnote #1 2. Barrick Internal,
Slide 76: Exploration value growth – impressive combination
Exploration value growth- impressive combination Goldstrike Cortez Pueblo Viejo Loulo Veladero Lagunas Norte Kibali Goldrush Turquoise Ridge Growth through organic discovery Morila and post acquisition addition Alturas Massawa Low cost accretive value for Barrick Gounkoto Tongon Acquired Added
Slide 77: 2017 Peer Reserves and Grades – New Barrick
2017 Peer Reserves and Grades- New Barrick P&P Reserves2 P&P Reserve Grade 2 (Moz) (g/t) 100 2 New Barrick1 New 1.73g/t Barrick1 Newmont 1.5 Newmont Goldcorp 1.14 g/t Peer Goldcorp 50 Avg. 1 0.91g/t 1.03 Kinross 78 Kinross 0.7g/t 69 54 0.5 36 50 0 0 1. New Barrick post-merger attributable proven and
Slide 78: Exploration Strategy
Exploration Strategy Extensive land positions in many of the world’s prolific gold districts Operating presence in world’s most prolific gold districts Western Focused brownfields in Cordillera Superior Craton Tier one districts South West US Balanced with early Guiana Shield Birimian stage ex
Slide 79: Track Record: West Africa
Track Record: West Africa Morila Yalea Tongon Kibali Massawa Loulo - Gounkoto Discovery 1996 1997 1998 1998 2007 2008 Type Folded metamorphosed Quartz ± ankerite Gold Skarn Greenstone/BIF Intermediate Shear zone hosted, sediments in contact vein lodes, Basaltic-andesitic Volcano sedimentary volcanic
Slide 80: Track Record: Great Basin, Nevada
Track Record: Great Basin, Nevada Cortez Hills Goldstrike South Arturo Goldrush Fourmile Underground Discovery 1986 2005 2006-2008 2011 2018 Sulphidized/oxide dissolution Structurally controlled, sulphidized Stratiform, lithological control, ~600Koz Au Reserves at time of Sulphidized dissolution bre
Slide 81: Strength in Combining Extensive Exploration Portfolios
Strength in Combining Extensive Exploration Portfolios Mines Mines KCGM – Australia1 Feasibility Projects Barrick Nevada – USA Morila – Mali Jabal Sayid – KSA Massawa - Senegal Turquoise Ridge – USA Loulo – Mali Golden Sunlight – USA Zaldivar – Chile1 Lumwana – Zambia Tongon – Cote d’Ivoire Hemlo –
Slide 82: Strength in Combining Extensive Exploration Portfolios
Strength in Combining Extensive Exploration Portfolios Mines Barrick Nevada – USA Turquoise Ridge – USA Golden Sunlight – USA Hemlo – Canada 55 Reserve Definition RESERVE AND Pueblo Viejo – Dominican Rep. 15 11 21 8 RESOURCE Lagunas Norte – Peru Veladero – Argentina 42 MI Resources 13 13 DEFINITION
Slide 83: Goldrush Camp – Continued Growth
Goldrush Camp – Continued Growth Continued success with infill and step-out drilling Emerging parallel trend along Blasdel Fault Goldrush2 N Fourmile1 Detail follows A’ Goldrush Fourmile Red Hill Future * approximate location Exploration GRC18-01 * Declines 3.5m @ 9.3 g/t Probable Reserves2 M&I
Slide 84: Blasdel – New Trend, Same Architecture
Blasdel – New Trend, Same Architecture A A’ 300 Meters Blasdel FM18-40D2 3.4m @ 12.5 g/t 1.4m @ 60.9 g/t Fourmile1 Siltstone/mudstone/ greenstone package FM18-50D2 7.6m @ 75.6 g/t Sandstone/mudstone LEGEND package Fourmile Gold > 5 g/t3 Goldrush Host limestone Breccia Fault Massive limestone Plan Vi
Slide 85: Fourmile – Q3 Select Significant Intercepts
Fourmile – Q3 Select Significant Intercepts1 Grade Thickness (gram*meter) N Goldrush project Fourmile project 500 Meters Plan at 5200 Level3 < 25 FM18-30D 39.3m @ 25.6 g/t 25 - 100 8.1m @ 18.8 g/t 100 - 249 250 - 499 500 - 1755 Goldrush Goldrush2 Footprint Open mineralization FM18-49D FM18-47D FM18-
Slide 86: Kibali Underground Opportunities
Kibali Underground Opportunities LOM Design 3000, 5000 and 9000 lode opportunities KCD Pushback 3 3000 Lode Sessenge open pit 330koz KCD open pit up plunge extension PB#2 300koz $1000/oz design PB#1 North 1.9Mt @ 2g/t (100koz) $1000/oz design UG – 2.1Mt @ 4.97g/t (335koz) Ave drill intersection 17.1
Slide 87: Yalea – 460 Koz at +11 g/t added to mine plan
Yalea...460 Koz at +11 g/t added to mine plan Yalea Transfer Zone YDH282 YaDH68 Long-section with extra ounces 11.4m @ 6.39g/t TW 8m @ 10.01g/t TW Q3 drilling YaDH86 17.3m @ 25.2g/t TW N YaDH92 Yalea Central Deep 12.3m @ 15.88g/t TW extra ounces YaDH80 4.3m @ 32.21g/t TW Purple Patch YDH280 100m 3.8
Slide 88: KZ Structure – pipeline of projects reinforces prospectivity
KZ Structure… pipeline of projects reinforces prospectivity Kalimva-Ikamva upside: Matiko Plunging shoots N At Ikamva Northwest, evidence of western extension of Ikamva Kalimva on the shear mineralised system associated with fold hinges - supported Oere Thrust plane by lithosamples of up to 11.5g/t
Slide 89: Guiana Shield – West Africa
Guiana Shield – West Africa Underexplored western continuation of West African Birimian Growing endowment through successful exploration Barrick has been active since 2014 with 2 investments thus far Exploration at similar stage to West Africa 15 years ago 147Moz (2015) >30Moz added through explor
Slide 90: Reunion Gold Partnership – Guiana Shield Experts
Reunion Gold Partnership… Guiana Shield Experts Strong management with proven track Producer record of discovery Pre-producer Past-producer Barrick placement (15%), with ROFR on any current or new projects generated Dorlin Drilling to validate and grow historic resources Geophysics to expe
Slide 91: Exploration strategy
Exploration strategy Explore world’s most prolific districts Focused brownfields in Tier 1 districts and around operating mines Great Basin Nevada, Andes, West African Craton, DRC-Tanzania Craton Mineral Resource Management Group to continue to convert discoveries into optimized value Bala
Slide 92: Appendix A – Fourmile Significant Intercepts
Appendix A – Fourmile Significant Intercepts1 1. All intercepts calculated using a 5 g/t Au cutoff and are uncapped; minimum intercept Drill Results from Q3 2018 width is 0.8 m; internal dilution is less than Core Drill Hole2 Azimuth Dip Interval (m) Width (m)3 Au (g/t) 20% total width FM18-02D 251
Slide 93: Appendix A – Fourmile Significant Intercepts
Appendix A – Fourmile Significant Intercepts1 1. All intercepts calculated using a 5 g/t Au Drill Results from Q3 2018 cutoff and are uncapped; minimum intercept Core Drill width is 0.8 m; internal dilution is less than Hole2 Azimuth Dip Interval (m) Width (m)3 Au (g/t) 20% total width 639.9 - 643 3
Slide 94: Appendix A – Fourmile Significant Intercepts
Appendix A – Fourmile Significant Intercepts1 1. All intercepts calculated using a 5 g/t Au cutoff and are uncapped; minimum intercept Drill Results from Q3 2018 width is 0.8 m; internal dilution is less than 20% total width Core Drill Hole2 Azimuth Dip Interval (m) Width (m)3 Au (g/t) 2. Fourmile d
Slide 95: Technical Information Endnotes
Technical Information The following qualified persons, as that term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects, have reviewed and approved the relevant scientific and technical information contained in this presentation: Rob Krcmarov, Executive Vice Pre
Slide 96: Mineral Resource Management
Mineral Resource Management Rod Quick Project Evaluation
Slide 97: Mineral resource management at New Barrick
Mineral resource management at New Barrick… Manage the orebody from gold in the ground to value for all stakeholders – only possible through ownership of the orebody MRM are empowered on the mines to own the orebody but are held accountable for the orebody understanding and estimation Responsible fo
Slide 98: Kibali – a case study of getting the geology right
Kibali…a case study of getting the geology right First visit in 2006 identified significant mineralisation and alteration system with folding and plunging shoots in interesting rocks Used BIF, chert, and carbonaceous argillite markers and stratigraphic younging direction and changing orientation of
Slide 99: Kibali – a case study of getting the geology right
Kibali…a case study of getting the geology right Distribution of ounces per vertical 5,800 meter drove the decision of shaft access 5,700 Geological, resource and geotechnical model defined the mining method 5,600 Understanding of rock hardness and gold deportment drove 5,500 metallurgical response
Slide 100: Strategic filters for investment
Strategic filters for investment… Striving to be the world’s most valued gold mining business By finding, developing and owning the best assets, with the best people, to deliver sustainable returns for our owners and partners It applies principally to gold (copper) It is located in a world class geo
Slide 101: A large pipeline of potential projects
A large pipeline of potential projects Scoping Prefeasibility Feasibility Execution/Extensions Pueblo Viejo Alturas expansion Goldrush Deep South Loulo 3 OP-UG Massawa Turquoise Ridge Zaldivar Ikamva Kalimva Expansion Yalea Norte Abierto Gara Kibali
Slide 102: Goldrush Project – potential Tier 1 asset
Goldrush Project – potential Tier 1 asset Feasibility (completed 4Q17) Mining Method(s) Underground only Orebody Refractory Declines from Cortez Drill program from decline will allow optimisation Access Hills Operations Orebody optimisation in indications are that Ore Transport Trucks infill drillin
Slide 103: Massawa feasibility project
Massawa feasibility project … Interim resource model update highlights significant shift in grade distribution within CZ orebody – higher Delya Main (18km) Delya Strike grades in the southern portion and lower grades in Tina 92koz @ 4.8g/t Extents northern half Bambaraya (18 km) Resource Ore reserve
Slide 104: Loulo 3 – scoping study
Loulo 3…scoping study L3DH156 L3DH154 Long-section with Preliminary economic assessment 19.8m @ 4.39g/t 9.7m @ 20.49g/t Q3 drilling completed with potential for expanded pit Current depletion N and underground project MZ1 US$ 1000/oz pit shell Open pit pushback forms part of existing US$ 1500/oz pit
Slide 105: Yalea – 460koz @ +11g/t added to the mine plan
Yalea…460koz @ +11g/t added to the mine plan Yalea Transfer Zone YDH282 YaDH68 Long-section with extra ounces 11.4m @ 6.39g/t TW 8m @ 10.01g/t TW Q3 drilling YaDH86 17.3m @ 25.2g/t TW N YaDH92 Yalea Central Deep 12.3m @ 15.88g/t TW extra ounces YaDH80 4.3m @ 32.21g/t TW Purple Patch YDH280 100m 3.8m
Slide 106: Turquoise Ridge
Turquoise Ridge1,2 2P Reserves4 M&I Resource4 2018 Minex Drilling1,2 North Zone Getchell extended to NW SHAFT 2 by 125m SHAFT 1 TS1802 - 16.5m at 16.9 g/t SHAFT 3 Getchell TS1803 – 16m at 11.1 g/t Fault Resource Footwall Pond Extension extended to Conversion W by 55m and N by 35m TS1802 TS1804 – 2.7
Slide 107: Kibali underground opportunities
Kibali underground opportunities… LOM design with 3000, 5000 and 9000 Lode opportunities KCD Pushback 3 3000 Lode Sessenge open pit 330koz KCD open pit up plunge extension PB#2 300koz $1000/oz design PB#1 North 1.9Mt @ 2g/t (100koz) $1000/oz design UG – 2.1Mt @ 4.97g/t (335koz) Ave drill intersectio
Slide 108: Kalimva-Ikamva – justifies progression to prefeasibility study
Kalimva-Ikamva…justifies progression to prefeasibility study Kalimva-Ikamva drill plan Phase 4 (109 RC and 8 DDH) drilling in $1200/oz pit shell completed at Kalimva and Average recovery of 90% from Ikamva. Pit optimisations and preliminary economic assessment complete BRT in fresh Infill drilling c
Slide 109: Organisational Flow
Organisational Flow Organizational structure enables communication flow Ownership of core competences through the entire organization CAPITAL EXPLORATION EVALUATION OPERATIONS PROJECTS
Slide 110: Appendix B – Turquoise Ridge Significant Intercepts
Appendix B – Turquoise Ridge Significant Intercepts 1 Drill Results from Q3 2018 Core Drill Hole 2 Azimuth Dip Interval (m) Width (m) 3 Au (g/t) TS1803 299 -60 789.9-814.9 16 11.1 TS1804 282 -69 942.4-945.2 2.7 18.2 TS1804A 282 -69 968.8-973.5 4.7 9.6 TS1804B 315 -72 980.2-984 3.8 13.9 1. All signif