Barrick Mining Corporation · TSX:ABX
Barrick Mining — Investor Day (November 2024)
19 slides from Barrick Mining's investor day presentation, November 2024
Slide 1: Finance & Supply Chain
FINANCE & SUPPLY CHAIN Graham Shuttleworth ` Chief Financial Officer
Slide 2: Supply chain footprint and approach
Supply chain footprint and approachi Barrick Supply Chain is decentralised to the Operations with a centralised Strategic Sourcing Group Focus on collaborative Empower people with Integrated systems Working with supply Integrated logistics Drive ESG initiatives demand planning to supply chain and pr
Slide 3: Price trends across the group
Price trends across the groupi Diesel ($/L) Natural Gas ($/MMBTU) Explosives ($/MT) Key commodity pricing $1.10 $10 $1,000 has largely returned to $900 price levels seen prior to $8 $1.05 Covid / Ukraine crises $800 $1.00 $6 $700 Majority of suppliers $0.95 $4 used the 2022 inflationary $600 period
Slide 4: Inventory management – mine supplies
Inventory management – mine suppliesi Maintaining security of supply while optimizing working capital Main drivers contributing to an optimized inventory base Supplies Inventory ($ millions) Empowered our people to take full responsibility and 1,600 accountability of inventory. This is not only a su
Slide 5: Supply chain cost reduction
Supply chain cost reduction Our procurement strategy includes Initiated Procurement Savings ($ Millions) leveraging our buying power to structure $700 long term agreements with our key business partners. $64 $607 $600 Supplier collaboration and building key $68 relationships are key not only from a
Slide 6: Local supplier spend and development
Local supplier spend and development Key Initiatives 2023/2024 Building and expanding our local footprint, specifically in DRC, Tanzania and LATAM Establishing local construction and mining partners in the AME and LATAM & AP regions Roll-out of local content plan developed for Porgera and Reko Diq B
Slide 7: Managing GHGs in Supply Chain – Scope 3 Emissions
Managing GHGs in Supply Chain – Scope 3 Emissions Scope 3 Emissions (T CO2e) We have identified Category One - Goods and Services, as the most material and impactful Scope 3 emissions category to address Our Scope 3 reduction roadmap includes: Engage with our suppliers: To accurately determine suppl
Slide 8: Capital Allocation Since 2018
Capital Allocation Since 2018 Operating Cash Flow, $M Realized Gold Price, $/oz2 2,340 Debt, Net of Cash, $M 2,400 6,000 2,200 1.0 5,500 6,000 1,948 5,500 2,000 5,000 0.9 1,778 1,790 1,795 1,800 4,500 5,000 0.8 4,500 1,600 4,000 1,396 0.7 4,000 1,400 1,267 3,500 0.6 3,500 1,200 3,000 5,417 3,000 1,0
Slide 9: Reko Diq Project Financing
Reko Diq Project Financing Financing Plan Benefits of the Financing Plan Reko Diq Mining Company is seeking to raise up to US$3 billion in Further mitigates risk through involvement of agency lenders with limited recourse project financing for Line 1 of the project significant experience in mining a
Slide 10: Non-Operating Spend
Non-Operating Spend Managing our closure liabilities and G&A spend Key Drivers of Non-Operating Free Cash Flow3 (Consolidated), $ millions Greenfield Exploration and Project Costs G&A Our operating assets provide the Upstream Taxes and PV Streaming Agreement Closure cashflow for all our group activi
Slide 11: Maintaining our drive to keep G&A costs low
Maintaining our drive to keep G&A costs low versus our peer group5 2024 Q3 YTD G&A as % of Consolidated Revenue 2024 Q3 YTD G&A as % of Consolidated Operating CF 2024 Q3 YTD G&A as $ per attributable GEO +109% +89% +62% 2.4% 6.5% 56 35 1.1% 3.4% Barrick Peer Group Average Barrick Peer Group Average
Slide 12: Total Group Cash Costs per ounce
Total Group Cash Costs per ounce1 by Category and Geography Total Cash Costs (by Category), $/oz1 2021 2022 2023 2024F 500 450 400 350 300 250 200 150 100 50 0 Labour & Benefits Energy & Fuels Consumables & Spares Contracted Services Royalties Other 6% 6% Labour & Benefits 5% United States 10% 22% E
Slide 13: Five-Year Gold Outlook
Five-Year Gold Outlook ($2,400/oz gold price) Gold Production (Attributable), kozii Cost of Sales6, Total Cash Costs1 and Total Gold Capital Expenditures (Attributable), $ mln AISC1, $/oz Total production, GEOi LATAM and AP Cost of Sales AISC Africa and Middle East North America Total Cash Costs Tot
Slide 14: Five-Year Copper Outlook
Five-Year Copper Outlook ($4.00/lb copper price) Copper Production (Attributable), kti Cost of Sales6, C1 Costs7, AISC7, $/lb Total Copper Capital Expenditures (Attributable), $ bn Reko Diq Jabal Sayid Zaldivar Lumwana Cost of Sales C1 Cash Costs AISC Total Capital 500 3.50 450 3.00 400 350 2.50 300
Slide 15: Metal price leverage
Metal price leverage Cumulative attributable OCF1 over 2025-29 from operating mines For every $100/oz change in gold price, attributable operating cash flow $50 bn. generated by our operations increases by more than $1.5bn For every $0.5/lb change in copper price, attributable operating cash flow ge
Slide 16: Leading Shareholder Return Framework
Leading Shareholder Return Framework Barrick established a clear dividend $0.57 Bn. policy9 in 2022 including: a base dividend which it can maintain and grow through the cycle a performance dividend to enhance $0.75 Bn. returns to shareholders when liquidity is Total Shareholder strong Returns A
Slide 17: Appendix A – Assumptions/Outlook
Appendix A – Assumptions/Outlook Key Outlook Assumptions 2024 2025 2026+ Gold Price ($/oz) 2,400 2,400 2,400 Copper Price ($/lb) 4.00 4.00 4.00 Oil Price (WTI) ($/barrel) 80 70 70 AUD Exchange Rate (AUD:USD) 0.75 0.75 0.75 ARS Exchange Rate (USD:ARS) 800 800 800 CAD Exchange Rate (USD:CAD) 1.30 1.30
Slide 18: Endnotes
Endnotes 1. “Total cash costs” per ounce and “All-in sustaining costs” per ounce are non-GAAP financial measures. “Total cash costs” per ounce starts with cost of sales related to gold production and removes depreciation, the non-controlling interest of cost of sales, and includes by-product credits
Slide 19: Endnotes
Endnotes 6. Gold cost of sales per ounce is calculated as cost of sales across our gold operations (excluding sites in closure or care and maintenance) divided by ounces sold (both on an attributable basis using Barrick's ownership share). Copper cost of sales per pound is calculated as cost of sale