Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — CIBC 17th Annual Whistler Institutional Investor Conference 2014
11 slides from Barrick Mining's conference presentation, Jan 23, 2014
Slide 1: CIBC 17th Annual Whistler Institutional Investor Conference
CIBC 17th Annual Whistler Institutional Investor Conference January 23, 2014
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, ot
Slide 3: 2013 Scorecard
2013 Scorecard Priority Action taken Meet production 9 Achieved improved 2013 guidance and cost targets Strengthen 9 De De-levered levered balance sheet with $3.0B equity offering financial 9 Significantly reduced near term debt maturities flexibility 9 Extended $4.0B undrawn credit facility to 2019
Slide 4: High Quality Portfolio; Pueblo Viejo: Ramping Up
High Quality Portfolio Five largest mines met guidance of ~55% of production in 2013 at average AISC <$700/oz(1) (1) See final slide #1 CORTEZ GOLDSTRIKE LAGUNAS VELADERO PUEBLO NORTE VIEJO 3 Pueblo Viejo: Ramping Up 2013E production: in line with guidance of about 500Koz 2014E production: ~60
Slide 5: Pascua-Lama: Decision to Suspend; Phased Approach
Pascua-Lama: Decision to Suspend In light of prolonged lower metal prices, continued uncertainty and risks Aligns with disciplined capital allocation framework and improves near term cash flow – 2014 expenditures of ~$0 $0.30B 30B((1)) – ceased capitalizing interest costs as of Q4 2013 Ramp do
Slide 6: 2013 Guidance Improvements; Preliminary 2013 Results
2013 Guidance Improvements Gold AISC(1) ($/oz) Gold Adjusted Total Capex(1) ($B) Operating Costs(1,2) 1,000 1,000- ~11% ($/oz) 1,100 900- 975 5.7- ~21% 6.3 ~7% 4.5- 5.0 610- 660 575- 600 Original Current Original Current Original Current 400 400 2.0 (1) Percentages calculated based on mid-point of g
Slide 7: Plans to Maximize Cash Flow; Preliminary 2014 Outlook
Plans to Maximize Cash Flow ASSET THIRD QUARTER 2013 PROGRESS Bald Mountain 9 Mine plan changes to focus on most profitable pits Yilgarn South mines 9 Sold Plutonic & Kanowna 9 Sold Pierina 9 Initiated closure 9 Deferred open pit expansion; evaluating changes to Hemlo underground mine plan 9 Improve
Slide 8: Sustained Performance Improvements; Improved 2013 Copper Guidance
Lumwana Sustained Performance Improvements Beat original production Production (Mlb) C1 Costs ($/lb) 80 $4.00 guidance of 210 210-250 250 Mlbs New mine plan and C1 cash cost guidance adopted 70 of $2.70-$3.10/lb in 2013 $3.50 Similar production at lower 60 $3.00 C1 costs expected in 2014 New lea
Slide 9: Financial Position and Liquidity; Improved Financial Flexibility
Financial Position and Liquidity Generated $3.2B of operating cash flow in first nine months of 2013 ~$2.0B of reductions to 2013 budgeted costs and capex $0.5B $0 5B off ttargeted t d annuall costt savings i $4.0B undrawn credit facility extended to 2019 Significantly lower 2014 cash outl
Slide 10: Cost Reduction Initiatives; Operational Excellence
Cost Reduction Initiatives Total annual savings target í $500M Annual Savings Targets ($M) Cost reduction programs well 500 underway All costs under review 150 Specific savings targets established Majority of 1,850 identified positions eliminated li i t d 250 New operating model being phased i
Slide 11: The Next Phase; Footnotes
The Next Phase Prioritizing cash flow and profitable production Capital discipline Strategic scenario planning to maximize cash flow in any price environment High Well positioned in current gold price cycle quality assets AISC one of the lowest of senior producers Implementing further cost reduction
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