Barrick Mining Corporation · TSX:ABX

Barrick Mining — Bank of America-Merrill Lynch 2015 Global Metals, Mining & Steel Conference

32 slides from Barrick Mining's conference presentation, May 12, 2015

  1. Slide 1: Bank of America-Merrill Lynch 2015 Global Metals, Mining & Steel Conference

    Bank of America-Merrill Lynch 2015 Global Metals, Mining & Steel Conference Barcelona | May 12, 2015 1

  2. 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

  3. Slide 3: Best Assets and Regions

    Best Assets and Regions  High quality portfolio with excellent upside potential  Strong competitive advantages in core regions – Nevada and the Andes  Pipeline of projects with potential to grow free cash flow1 per share 1. See final slide #1 3

  4. Slide 4: Best Assets and Regions

    Best Assets and Regions Pueblo Viejo Lagunas Norte Cortez Goldstrike Veladero 1. See final slide #1 and #2 4

  5. Slide 5: High Grade Reserve Base

    High Grade Reserve Base Grams per tonne1 The average reserve grade of Barrick’s core mines 2.01 BARRICK is more than double the peer average 5 CORE MINES 1.37 BARRICK TOTAL 1.04 0.95 0.9 g/t PEER AVERAGE 0.72 0.66 NEWMONT GOLDCORP KINROSS NEWCREST 1. See final slide #3 5

  6. Slide 6: Three-Year Production and Cost Outlook

    Three-Year Production and Cost Outlook Gold Production (Moz)  2015 gold guidance on- 6.2-6.61 track for production of 6.2 6.0 6.2-6.6 Moz at AISC of AISC AISC $860-$895/ounce $864 $860- $8951  AISC below 2015 levels 4.0 by 2017  Production in excess of 6 Moz in both 2016 and 2.0 2017 2014 2015 20

  7. Slide 7: Copper Outlook

    Copper Outlook Zaldivar Lumwana Jabal Sayid  Strong cash flow  Operations to continue  Shipments of copper generator under Zambia’s new concentrate  Initiated sale of stake proposed tax regime anticipated in early  Free cash flow positive 2016 at current copper prices  Improved 2015 copper out

  8. Slide 8: Rapid Transformation

    Rapid Transformation Value-driving Swiftly returning Continuing to initiatives to original drive fast-paced business model change  Rigorous capital allocation -  Lean,  Capex reduced specific ROIC decentralized after initial thresholds operating model capital review and more  Partnership  Head-

  9. Slide 9: Restoring a Strong Balance Sheet

    Restoring a Strong Balance Sheet  Return to a lean, decentralized operating model Maximizing  Targeted G&A cuts of $30M in 2015 & $70M in 2016 1 Free Cash Flow  Initial capital review led to $200M capex reductions  Expect positive FCF in 2015 at current gold prices 2 Disciplined Non-Core Asset S

  10. Slide 10: Restoring a Strong Balance Sheet

    Restoring a Strong Balance Sheet Disciplined non-core asset sales - Value of other gold and copper assets can be leveraged to cover debt reduction target Core mines Other mines1 Copper Cortez Bald Mountain Zaldívar Goldstrike Cowal Lumwana Golden Sunlight Lagunas Norte 4.0 2.3 Hemlo Jabal Sayid Pueb

  11. Slide 11: Applying Strict Capital Discipline

    Applying Strict Capital Discipline Capital allocation  Overall portfolio must Available Capital deliver ROIC of 10-15% Current Portfolio  Allocating capital to Existing Growth the best assets in our Mines Projects core regions 15%  Existing mines compete Return on for capital and must Invested Ca

  12. Slide 12: Reducing Capital Intensity

    Reducing Capital Intensity Total Capex ($ Billions)  Re-assessing 2015-2016 $2.2 -7% capex budgets -11%  $200M in capex $1.9- reductions identified $2.2 $1.8- $2.1  Further reductions expected 2014 2015E 2015E (actual) (original) (revised) 1.0 12

  13. Slide 13: Maximizing Free Cash Flow

    Maximizing Free Cash Flow Execution Underway Actions Implemented a decentralized model – annualized G&A savings of $70M in G&A 2016 Capex Identified $200M of capex reductions – more expected Opex Incorporating opportunities from Value Realization reviews into mine plans Pascua- Identifying opportuni

  14. Slide 14: Strong Liquidity

    Strong Liquidity  Less than $0.9B due by 2017  $2.3B in cash1 and $4.0B undrawn credit facility Cash Position Scheduled Debt Repayments to 20182 2.0 $2.3B 1.5 <$0.9B 1.0 0.5 $4.0B 0 Undrawn Credit Facility 2015 2016 2017 2018 1. See final slide #7 2. As of Mar. 31, 2015 14

  15. Slide 15: Value Realization Studies

    Value Realization Studies  Expert teams assessing economic potential of every mine  Studies will support non-core asset sale processes  Upside opportunities being factored into mine plans 15

  16. Slide 16: Pueblo Viejo — Value Realization Study

    Pueblo Viejo — Value Realization Study Extend mine life Processing throughput Convert 7-8 Moz resources to reserves1 Up to 10% increase by 2019 Convert plant from HFO to LNG Convert lime kilns to LNG Reduced operating costs by end of 2017 Reduced energy costs and emissions 1. See final slide #8. 16

  17. Slide 17: Innovation and Technical Expertise

    Innovation and Technical Expertise GOLDSTRIKE JABAL SAYID New thiosulfate (TCM) New flotation technology process is cyanide-free is cyanide-free 17

  18. Slide 18: Cortez, Nevada

    Cortez, Nevada OUTLOOK  2015 production of 825-900 koz at all-in sustaining costs (AISC) of $760-835/oz OPPORTUNITIES TO ADD VALUE Cortez Hills Lower Zone (< 3,800 ft.)  Mainly oxide and higher grade vs. current underground mine  Limits not yet defined  New targets being identified at depth  Pr

  19. Slide 19: Goldstrike, Nevada

    Goldstrike, Nevada OUTLOOK  2015 production of 1,000-1,150 koz at AISC of $700-800/oz  ~1 Moz of annual production 2015-2017 at AISC of <$900/oz OPPORTUNITIES TO ADD VALUE Thiosulfate circuit ramping-up in 2015  Cyanide-free  Brings forward 4 Moz in the mine plan  350-450koz of annual productio

  20. Slide 20: Pueblo Viejo, Dominican Republic

    Pueblo Viejo, Dominican Republic OUTLOOK  2015 production of 625-675 koz (60% interest) at AISC of $540-590/oz  >1 Moz of annual production in 2015-2017 (100% basis) at AISC of <$700/oz OPPORTUNITIES TO ADD VALUE  Increase process throughput up to 10%  Convert power plant from heavy fuel oil (HF

  21. Slide 21: Lagunas Norte, Peru

    Lagunas Norte, Peru OUTLOOK  2015 production of 600-650 koz at AISC of $675-725/oz OPPORTUNITIES TO ADD VALUE Evaluating potential to mine sulfide ore below current pit  Significant extension of mine life  Potential relocation of autoclave from Goldstrike mine Drilling production blast holes 21

  22. Slide 22: Veladero, Argentina

    Veladero, Argentina OUTLOOK  2015 production of 575-625 koz at AISC of $990-1,075/oz OPPORTUNITIES TO ADD VALUE  Reducing costs through: – Improved maintenance and blasting activities – Reduced contractor services costs  Recovery of ounces from: – Inventory through better management of the leach

  23. Slide 23: Turquoise Ridge - Our Highest Reserve Grade

    Turquoise Ridge - Our Highest Reserve Grade 16.9g/t2  2014 drilling added +400 koz Tur- to North Zone M&I resources2 quoise Ridge  North Zone is higher grade than existing mine North Zone Highlights  71% of reserve tonnes  74% of LOM ounces  45% higher grade vs. South  Ore body still open to t

  24. Slide 24: Turquoise Ridge, Nevada

    Turquoise Ridge, Nevada OUTLOOK  2015 production of 175-200 Koz (75% interest) at AISC of $875-925/oz OPPORTUNITIES TO ADD VALUE An emerging core mine3  Second shaft will bring forward >1 Moz of production (100% basis): – Production increases to ~500 koz1 at AISC of $625-$675/oz – Capex of $300-$3

  25. Slide 25: Focused on Growth in the Americas

    Focused on Growth in the Americas Turquoise Ridge Cortez Hills Goldrush Spring Valley 25

  26. Slide 26: Goldrush — 70% of Resource in M&I

    Goldrush ̶ 70% of Resource in M&I Portal TARGETS High-grade potential Cortez untested and open Hills Mine High-grade continuity being established Goldrush Deposit1 10.6 Moz M&I 4.9 Moz Inferred 0 miles 1 2 3 4 1. See final slide #3 26

  27. Slide 27: Exploration Focused in the Americas

    Exploration Focused in the Americas $220-$260M1 budget in 2015  ~85% focused on the Americas Lagunas Norte Pierina  Half directed to Nevada Other PERU 15% Mine Project South North Turquoise Ridge America AREA America ENLARGED Goldstrike 35% Elko 50% NEVADA Carlin Zaldivar Spring Valley Cortez Gold

  28. Slide 28: New Discovery at Alturas

    New Discovery at Alturas Chile Argentina  Located on the prolific Pascua-Lama El Indio Belt in Chile Veladero  Primarily oxide, similar Barrick Claims to Veladero but could be significantly higher grade El Indio Tambo Barrick Claims Alturas 20 Km 28

  29. Slide 29: Alturas Exploration

    Alturas Exploration 1 NORTH SOUTH Cross section San Juan ARGENTINA Coquimbo CHILE Grade x Thickness (gpt-m Au) 100 – 524 25 – 100 0.3 – 25 1. See final slide #10, #11 and #12 29

  30. Slide 30: Alturas Cross Section

    Alturas Cross Section  NORTH Expect initial resource with year-end results 1 SOUTH Argentina > 0.25 gpt Au > 1.0 gpt Au Cross section1 Chile San Juan ARGENTINA 5000 RL 97m @ 4.40 gpt Au Andesitic Cap 168m @ 1.66 gpt Au Coquimbo CHILE 4750 RL Grade x Thickness Breccia (gpt-m Au)1 100 – 524 4500 RL 2

  31. Slide 31: Maximizing Free Cash Flow and Returns

    Maximizing Free Cash Flow and Returns High Quality Portfolio and Attractive Project Pipeline Restoring a Strong Balance Sheet Returning to Original Partnership Culture 31

  32. Slide 32: Footnotes

    Footnotes 1. Free Cash Flow (“FCF”), all-in sustaining costs per ounce (“AISC”), and C1 cash costs per pound are non-GAAP financial performance measures with no standardized definition under IFRS. See pages 49-54 of Barrick’s First Quarter Report 2015. 2. 2015 guidance is based on gold, copper, and

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