Barrick Mining Corporation · TSX:ABX
Barrick Mining — Corporate Update (July 2019)
29 slides from Barrick Mining's corporate update, Jul 19, 2019
Slide 1: Investing in Cote d’Ivoire’s future…
Côte d’Ivoire Investing in Cote d’Ivoire’s future… Tongon Mine, July 2019
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 Barrick’s strategy, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of histor
Slide 3: The leading African gold miner…
The leading African gold miner… Jabal Sayid (50%) Loulo-Gounkoto (80%) Morila (40%) Massawa (83.25%) Kibali (45%) Tongon (89.7%) North Mara Lumwana (63.9%) Bulyanhulu Buzwagi Gold production Projects Acacia (63.9% Barrick) Copper production
Slide 4: Safety, health and environment…
Safety, health and environment… Health and Safety Environment LTIFR of 0.00 – zero LTI recorded since 574 days giving 8 713 166 LTI free Zero class 1 & 2 environmental incidents work hours. The water management is effective at Tongon with no uncontrolled Tongon certified ISO14001:2015 & OHSAS 18001
Slide 5: Q2 2019 update…
Q2 2019 update… 67,139 ounces of gold produced for the quarter 1 Lower throughput than planned offset by increased recovery compared to Q1 2019 at 85.7% Intensive dewatering program following water overflows in both pits due to strike in 2018 Zero lost time injuries recorded for the quarter, 8.7 mil
Slide 6: 2019…progress towards delivering on business plan
2019…progress towards delivering on business plan Gold production on track to achieve 2019 guidance of 290 000oz 1 Engagement with government and CIE on upgrading infrastructure and performing critical investments for grid power stability/quality Implementation recommendations from technical consult
Slide 7: Tongon performance…improvement in production and recovery
Tongon performance…improvement in production and recovery Gold recovery, % Gold production, oz 000 95 350 2019 outlook 300 90 289 290 1 261 250 85 250 243 234 227 230 211 200 80 150 75 100 70 50 65 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 Production Recovery %
Slide 8: Mills stoppages due to power issue…
Mills stoppages due to power issue… (voltage or frequency variance) Q1 and 2 45 Mills Stopage due CIE (Q1 & Q2: 2019) 39 40 35 29 30 25 Hours 20 18 16 15 12 10 10 5 0 January February March April May June Quarter 1 Quarter 2 Power consumed : 56 765 060 kWh Power consumed : 57 402 520 kWh Grid Power
Slide 9: Tongon actual and forecast production…
Tongon actual and forecast production… Focus on Cost Management to extend the ‘LOM’ Production oz 000 Total cash cost $/oz Capex $m Grade g/t 1000 3 900 Grade 800 700 2 600 TTC/Oz 500 400 Capital 1 300 200 100 0 0 2013 2014 2015 2016 2017 2018 2019 Oz actual Oz forecast Total Cash Cost/oz 2 Capital
Slide 10: Tongon mine…focus on Mineral Resources and Mineral Reserve management
Tongon mine…focus on Mineral Resources and Mineral Reserve management to extend the ‘LOM’3 Moz 5 4 3 2 1 0 Mineral Reserves Total Mineral Resources
Slide 11: Tongon life of mine…evaluation update
Tongon life of mine…evaluation update Main Objective: Identify additional life of mine through brownfields exploration NZ Oxide pit extension update: Tongon Satellite Potential Seydou S. Confirmed alteration continuity to the east over 200m Total 15 RC holes (1390m) returns encouraging results inclu
Slide 12: CDI…extensive exploration on all permits
Large portfolio covering most prospective areas in CDI…extensive exploration on all permits Tengrela Nord Nielle Tongon Mine N Barrick Exploration Fapoha S Fapoha N Permits& Tongon Mine Highlighted two corridors Mankono JV Boundiali of strong soil anomalies, Barrick Exploration Permits Over Mankono
Slide 13: Boundiali…extensive drilling along strike of Fonondara
Boundiali…extensive drilling along strike of Fonondara Main identified potential targets for follow up SANI TARGET N Wide system with higher grades identified over a 1.2km Open toward NE, SW and at depth FONONDARA MAIN Mineralization confirmed by RC/DDH drilling over 1.5km strike-length Open toward
Slide 14: Badenou Trend…adding resources for potential life of mine extension
Badenou Trend…adding resources for potential life of mine extension Corridor located within 20km of Tongon Plant N Seydou S. TNZ Shallow AC drilling extended potential structure over +14km strike length from Sekala satellite pit to TSZ Ourapa, structure remains open toward south Tongon West Sekala D
Slide 15: Barrick via Randgold Resources…years in Côte d’Ivoire
Barrick via Randgold Resources… more than 20 years in Côte d’Ivoire Actual numbers PTD total Investment Tongon: CFA 311.5 Bn Exploration expenditure on permits since PTD production (up Q1 2019): 63 tonnes 1995 US$ million 14 ~$90 million invested in exploration since 12 1995 up to end of 2018. … 10
Slide 16: Illegal mining sites still a challenge on our permits…
Illegal mining sites still a challenge on our permits… Value destruction for Cote d’Ivoire and Investors Government reaction - Tongon +300 artisanal miners next to Fonondara Main Creating alternative job sources…rise in the price of increases the risk of them mining the resources agricultural produc
Slide 17: Tongon Mine…local capacity development
Tongon Mine… local capacity development Mine Perm expats expats contractor 17 (1.0%) 18 (1.0%) Total employees : 1 759 Mine Nationals: 1 724 (98%) locals perm Expats: 35 (2%) 652 (37.1%) Nationals of contractors 1 016 (57.8%) Local temporary 56 (3.2%)
Slide 18: Tongon localisation and employment… economic growth for all
Tongon localisation and employment… economic growth for all Labour Statistics % expatriates compared to nationals Total Expat % 100% Department Tongon Contract Employed total Expat 90% Geology 87 22 109 0% 80% Mining 21 616 637 17 3% 70% 60% Process 232 175 407 2 0% 50% Engineering 233 26 259 11 4%
Slide 19: Our relationship with our employees is important…
Our relationship with our employees is important… Training session Work resumption induction Social event - Donation to Employees Training and upskilling of employees All employees were inducted and All employees received donation to celebrate 3 608 people trained to date sensitized on HR regulation
Slide 20: Tongon contributes significantly to the economy of Côte d’Ivoire…
Tongon contributes significantly to the economy of Côte d’Ivoire… Forms of Contribution Amount (KUSD) Payments to the State and local companies as at end of March 2019 Payroll Taxes 26 574 Duties 27 300 Royalties 82 477 Payroll taxes, 2% Local Contractors and Community Investment 1 023 501 Duties, 2
Slide 21: Investment for the local community exceeds $10 million…
Investment for the local community exceeds $10 million… Q2 2019 COMMUNITY INVESTMENT Health $375,807 (~ CFA 219,972,159) spent on the community during Q2 2019 15% 47% on road and infrastructure - 16% for Agriculture -15% for health Road & Infrastructure Education 2019 YTD expenses up to $ 668,500 47
Slide 22: CSR...permanent commitment with stakeholders to local community development
CSR...permanent commitment with stakeholders to local community development A budget of around 700 million to match the ambitions for the development and sustainability of the local economy CFA 338 million (US$) 577 778 allocated to Sustainable development community projects selected by the committe
Slide 23: Tongon…focused congenial relationship with communities
Tongon…focused congenial relationship with communities Zero unresolved grievances Monthly Community Development Committee Meetings - Development Projects - Conflict Resolution Annual report presentation to stakeholders - transparency - information sharing via M'Bengue FM Training local community lea
Slide 24: Closing plan for the Tongon Mine...
Closing plan for the Tongon Mine... Agribusiness on the way to implementation In partnership with The Animals and fisheries resources Ministry (MURAH) a Pilot Project of the Agribusiness project of a cost of 1.4 Billion CFA (US $ 2,350,000) compared to the initial budget of 10 Billion (US $ 17,500 0
Slide 25: Public Relations…
Public Relations… Close collaboration with the local authorities of the region Primary schools’ tournament of Ramadan 2019 soccer, handball and budding genius, in Every year, the GM and the Visit of the Mediator delegate for the regions partnership with 9 primary schools community manager visit the
Slide 26: Endnotes…
Endnotes… 1. At 100%. 2. “Total cash costs” per ounce and “All-in sustaining costs” per ounce are non-GAAP financial performance measures. “Total cash costs” per ounce starts with cost of sales applicable to gold production, but excludes the impact of depreciation, the non-controlling interest of co
Slide 27: Appendix A – Tongon Main Gate Target
Appendix A – Tongon Main Gate Target Significant Intercepts Area Hole_id From To width (m) Grade (g/t) Tongon Main Gate is located to the NW of Tongon West target. It is a potential NE shear structures identified from integration of field mapping, soil anomalies and EM geophysics Main_Gate TWRC236 4
Slide 28: Appendix B – Tongon NZ Oxide Pit Extension Significant Intercepts
Appendix B – Tongon NZ Oxide Pit Extension Significant Intercepts Tongon NZ Oxide pit is located East of the NZ. Grade Area Hole_id From To width (m) Tongon NZ Oxide Pit has similar drill hole name initial, to that of Tongon (T) followed (g/t) by type of drilling RC (Reverse Circulation) and DH (Dia
Slide 29: Appendix C – Tongon West NE Extension
Appendix C – Tongon West NE Extension Q2 2019 Significant Intercepts Tongon West: NE Extension test significant results Program of 8 RC holes for 721m total length to test NE extension Grade Area Hole_id From To width (m) (g/t) All intercepts calculated using 0.5g/t Au cutoff and are uncapped, minim