Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Denver Gold Forum 2007
13 slides from Barrick Mining's conference presentation, Sep 26, 2007
Slide 1: Denver Gold Forum September 26, 2007
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Denver Gold Forum September 26, 2007 CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain information contained or incorporated by reference in this presentation and related material, including any information as to our future fina
Slide 2: Frequently Asked Questions
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Frequently Asked Questions “Are industry cost pressures eroding Barrick’s margins?” “Can Barrick replace its reserves and grow?” “What are Barrick’s plans for its valuable non-gold assets?” “How does Barrick think about capital allocation
Slide 3: Industry Cost Pressures
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Industry Cost Pressures Barrick Total Cash Costs Per Ounce 2005 vs 2006 (1) 375 350 325 300 $282 275 15 282 14 Inflation 250 227 net of CI Exchange Royalties & Initiatives $227 21 Rate Taxes - $5 225 Placer Dome 200 2005 Actual 05 06 2006
Slide 4: Industry Cost Pressures
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Industry Cost Pressures Competitive Advantages: – 2007 cost increase is mainly grade-related – Currency and fuel hedging in place – CI initiatives showing measurable results – Supply-chain management Next Generation of Mines expected to b
Slide 5: Reserve Replacement
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Reserve Replacement “Can Barrick replace its reserves and grow?” Reserves replaced every year since 2000 Dominant positions on the world’s best belts Strong exploration focus 123 Moz(1) 120 – $185M in 2007 Deep project pipeline 10
Slide 6: Project Pipeline
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Project Pipeline “Can Barrick replace its reserves and grow?” EXPLORATION FEASIBILITY PERMITTING CONSTRUCTION OPERATIONS Buzwagi Cortez Hills Pascua-Lama Pueblo Viejo Donlin Creek Fedorova Sedibelo Kabanga Reko Diq Exploration Project Pip
Slide 7: Projects Contribution
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Projects Contribution Reserves(1) Resources(1) Projects Minerals P&P M&I Inferred Cortez (2) Gold Moz 37 15.4 8.6 Pascua-Lama Silver Moz 742* 44.0* 15.2* Buzwagi Pueblo Viejo Copper M lbs 900* 5,824 4,352 Donlin Creek Platinum Moz 2.2 3.0
Slide 8: Non-gold Assets and Capital Allocation
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Non-gold Assets “What are Barrick’s plans for its valuable non-gold assets?” Intent is to maximize value of assets… Kabanga (Ni sulphide - Tanzania) Sedibelo (PGM - South Africa) Fedorova (PGM - Russia) Capital Allocation “How does
Slide 9: Share Price Performance
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Share Price Performance Year-to-date returns (to September 21) Barrick Kinross 30.5% 30.3% ETF 14.4% Goldcorp Newmont 6.3% 5.3% -0.5% AngloGold -4.2% GoldFields Share Price Performance “Why haven’t the shares performed better?” Concerns
Slide 10: Gold Price Conviction
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Gold Price Conviction Gold Price Distribution 100% 89% 90% 90% 80% 77% 70% 60% 50% 40% 30% 20% 16% 10% Since 5% 7% 7% 1980 1990 2000 2% 1% 2% 2% 2% 0% Below $500 $500-$550 $550-$600 Above $600 Gold Price Conviction Gold Price Distribution
Slide 11: Gold Price Conviction
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Gold Price Conviction Global Gold Demand Second quarter 2007 2006 US dollars billions 19.8 15.6 27% Tonnes 922.0 773.5 19% Source: GFMS and WGC calculations based on GFMS data Gold Price Conviction Growth in Emerging Markets (2Q-2007 vs 2
Slide 12: Valuations / In Closing
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Valuations Barrick is trading at historically low valuation multiples 60 $700 Average Gold Price 50 $650 40 $600 30 $550 Price to Earnings / share 20 $500 S&P 500 Earnings Multiple 10 $450 Price to OCF / share 0 $400 Q1-05 Q2-05 Q3-05 Q
Slide 13: Footnotes
BARRICK GOLD CORPORATION Denver Gold Forum September 26, 2007 Footnotes 1. Total cash costs are defined as cost of sales divided by ounces of gold sold or pounds of copper sold. Total cash costs exclude amortization expense and inventory purchase accounting adjustments. For further information on th