Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — FY2018 Earnings Presentation
66 slides from Barrick Mining's earnings presentation, Feb 13, 2019
Slide 1: Results for the Quarter and Year Ended 31 December 2018
Results for the Quarter and Year Ended 31 December 2018
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,
Slide 3: Barrick...2018 highlights
Barrick...2018 highlights Completed transformational merger with Randgold Resources Limited to create industry-leading gold company, effective January 1, 2019 Generated annual revenues of $7.24 billion, net cash provided by operating activities (“operating cash flow”) of $1.77 billion, and free cash
Slide 4: Barrick…operating results
Barrick…operating results Q4 Q3 Full Year Operating Results Gold Full-year gold production of 4.53 2018 2018 2018 Moz was within guidance, at a cost Production (oz 000) 1,262 1,149 4,527 of sales1 of $892/oz and all-in sustaining costs2 of $806/oz Cost of sales applicable to gold 980 850 892 ($/oz)1
Slide 5: Barrick…financial results
Barrick…financial results Full Q4 Q3 Q4 revenue was $1.90 billion with Financial Results Year 2018 2018 operating cash flow of $411 million 2018 and free cash flow of $37 million1 Average realized gold price ($ per Total attributable capital expenditures 1,223 1,216 1,267 ounce)11 for 2018 were $1.4
Slide 6: Barrick…health & safety
Barrick…health & safety Lost Time Injury Frequency Rate Zero fatalities in 2018 (LTIFR) 1.2 1.05 1 0.85 10 Lost Time Injury (LTI) cases recorded 0.8 0.70 0.75 during Q4 across the group with a Lost Time 0.6 0.53 Injury Frequency Rate (LTIFR) of 0.60 0.4 0.2 Year ended with a LTIFR of 0.53 which 0 re
Slide 7: Barrick Nevada…Goldstrike and Cortez
Barrick Nevada…Goldstrike and Cortez (including 60% share of South Arturo) Gold production 9% lower year on year Full Q4 Q3 as a result of lower production at Cortez Barrick Nevada…Gold Year 2018 2018 oxide mill 2018 Nevada entering period of transition as Production (equity oz 000)1 620 545 2100 Co
Slide 8: Goldrush-Fourmile extends footprint within Cortez district..
Goldrush-Fourmile extends footprint within Cortez district.. Ongoing exploration extends ore grade mineralization with Goldrush and Fourmile orebodies on the same geological trend Current reserves increased to 6.4Mt at 9.7g/t for 2.0Moz1 Current indicated mineral resources outside of reserves stand
Slide 9: Goldrush–Fourmile…potential to be our next Tier One mine
Goldrush–Fourmile…potential to be our next Tier One mine Initial inferred resource of 1.2Mt @ 18.58g/t for approximately 700koz at Fourmile within significantly mineralized footprint1 N FM18-52D 25.9m @ 34.6g/t 21.3m @ 30.2g/t (*) FM18-47D FM18-43D 4.6m @ 60.9g/t (*) 3m @ 10.6g/t 3.8m @ 11.6g/t (*)
Slide 10: Nevada…Turquoise Ridge
Nevada…Turquoise Ridge 27% increase in gold production year on year Full after higher carbon content in Q1 2017 delayed Q4 Q3 Turquoise Ridge…Gold Year processing in prior year 2018 2018 2018 Increase in production also attributed to streamlining ore delivery to Twin Creeks Production (equity oz 000
Slide 11: Turquoise Ridge…continued exploration success
Turquoise Ridge1…continued exploration success Confirmed extension of Bas SHAFT 2 Pond East ~140m away from SHAFT 1 SHAFT 3 existing resource NE Pond Extension extended mineralization N by 150m Deposit remains open in South Zone North Zone multiple directions – further TU03432* drilling planned 14.6
Slide 12: Dominican Republic – Pueblo Viejo (60%)…
Dominican Republic – Pueblo Viejo1 (60%)… Production 11% lower due to expected decline in ore grades from carbonaceous ore in Moore pit leading to Full Q4 Q3 lower recoveries Pueblo Viejo…Gold Year 2018 2018 2018 Partially offset by record throughput for the year resulting from continued optimisatio
Slide 13: Argentina - Veladero (50%)…
Argentina - Veladero (50%)… Production decreased by 13%3 year on year due to lower head grade and tonnes processed Full as a result of delays in Phase 5 of open pit Q4 Q3 Veladero…Gold Year Cost of sales impacted by export tax announced 2018 2018 2018 in September 2018 External and internal challeng
Slide 14: Peru - Lagunas Norte (100%)…
Peru - Lagunas Norte (100%)… Barrick property Full Piedra Q4 Q3 N Grande Volcanic rocks Lagunas Norte…Gold 2018 2018 Year 2018 Extensive surface gold Production (equity oz 000) 50 64 245 anomalies Lagunas Cost of sales ($/oz) 1 4,186 720 1,342 Norte Cash Costs ($/oz)1 607 472 448 Genusa La Capilla A
Slide 15: Papua New Guinea – Porgera…
Papua New Guinea – Porgera… 2018 throughput impacted by earthquake which damaged power plant supplying electricity to minesite, although partially offset by higher grade Full processing restored earlier than expected due to business continuity planning Special Mining Lease due for approval in August
Slide 16: LATAM…exploration summary
LATAM…exploration summary Dominican Republic - Pueblo Viejo Andean Region New understanding of models leading to Dominican Republic identification of potentially high grade blind mineralization targets along 6Moz Monte Oculto Pueblo Viejo trend N Haiti Santo Domingo Peru - Lagunas Norte Oxide potent
Slide 17: Copper mines….
Copper mines…. Lumwana, Zambia Improved performance in Q4 following significant throughput and mining challenges Full Q4 Q3 Stripping now critical to maintain operation Copper Year 2018 2018 2018 Jabal Sayid, Saudi Arabia (50%) Production (equity lbs 109 106 383 million) Annual attributable producti
Slide 18: Barrick reserves and resources
Barrick reserves and resources1… Oz 000 Reserves down principally 200 on Cortez Hill open pit 180 depletion and Bulyanhulu rightsizing - 56% of 160 64.4Moz 62.3Moz Total proven & depletion replaced, @ 1.55g/t @ 1.56g/t probable reserves 140 replacement grade was 120 double depletion 100 Measured and
Slide 19: Randgold KPIs…
Randgold KPIs… Merger with Barrick to create the new mining champion completed on 1 January 2019 Group gold production up 21% quarter on quarter Cost of sales per ounce down 6% quarter on quarter Group total cash cost per ounce 1 down 4% quarter on quarter Annual group total cash costs1 of $637/oz,
Slide 20: Randgold summary financials…
Randgold summary financials… Quarter ended Year ended 31 Dec 30 Sep 31 Dec $000 2018 2018 2018 Average gold price received ($/oz) 1 236 1 209 1 266 Revenue 334 814 243 566 1 135 317 Group gold sales1 464 650 374 225 1 642 201 Exploration and corporate expenditure 22 638 11 309 64 698 Profit for the
Slide 21: Randgold…health & safety
Randgold…health & safety Lost Time Injury Frequency Rate (LTIFR) 0.59 0.6 0.51 1 Lost Time Injury (LTI) recorded at Morila in Q4 0.47 0.46 0.4 Total of 8 LTI cases were recorded during the 0.29 year for a LTIFR of 0.29 per million hours 0.2 worked, a 44% decrease compared to the previous year 0 2014
Slide 22: Mali - Loulo-Gounkoto Complex…
Mali - Loulo-Gounkoto Complex… Record throughput at reserve grade despite Year Quarter ended ended a week lost to industrial action Production ramped up quarterly to 192koz in 31 Dec 30 Sep 31 Dec $000 Q4 and 660koz for the year 2018 2018 2018 Cost of sales of $684/oz and total cash costs Mining of
Slide 23: Mali - Loulo deposit…
Mali - Loulo 3 deposit1… L3DH156 L3DH154 Long-section with 19.8m @ 4.39g/t 9.7m @ 20.49g/t Q3 drilling Current depletion N Preliminary economic MZ1 US$ 1000/oz pit shell assessment completed on US$ 1500/oz pit shell potential of Loulo 3 expanded L3DH155 L3DH158 open pit and underground 4.7m @ 18.2g/
Slide 24: Loulo District…a world class destination
Loulo District…a world class destination Loulo Permit1: Baboto Scout drilling tests upside potential in strike extensions to Gara and Yalea: Gounkoto Permit: Gara Loulo 3 Scout drilling confirms geologic continuity of YaDH80: 5.00m @ 32.22g/t Au (TW) Gounkoto HW shoots YaDH101: 6.2m @ 20.03g/t Au (T
Slide 25: Tongon mine - Côte d’Ivoire…
Tongon mine - Côte d’Ivoire… Year Quarter ended ended Following illegal strikes at Tongon in Q3, mine operations returned to 31 Dec 30 Sep 31 Dec normal in Q4 and achieved both $000 2018 2018 2018 planned production and revised Mining market guidance for the year Tonnes mined (000) 6 824 2 903 18 58
Slide 26: Northern Côte d’Ivoire…shallow drilling confirms multiple mineralised structures
Northern Côte d’Ivoire1…shallow drilling confirms multiple mineralised structures Sani Up to 90m-wide system identified in Au-in-soil +220ppb over 1.25km strike Drill results include: N Nielle Badenou Trend 7m @ 13.4g/t (incl. 3m @ 6.37g/t) +15km-long mineralized shear, open to the 5m @ 4.79g/t (inc
Slide 27: DRC - Kibali mine…
DRC - Kibali mine… Year Quarter ended ended Record gold production for Kibali $000 31 Dec 30 Sep 31 Dec mine of 807 251 ounces, beating 2018 2018 2018 guidance Mining Throughput above nameplate Tonnes mined (000) 8 142 8 223 32 866 level and recovery up 6% year on Ore tonnes mined (000) 2 996 2 482
Slide 28: Kibali KZ structure…multiple opportunities
Kibali KZ structure1…multiple opportunities Kalimva – Ikamva further upside: Infill drilling confirms model and adding high grade mineralisation Down dip and down plunge remain open for UG opportunity Ikamva NW and East (HW and FW BIF mineralisation) Kalimva-Ikamva hinge zone Oere-Kalimva gap zone O
Slide 29: Massawa gold project, Senegal…
Massawa gold project1, Senegal… Economic assessment was completed on the four open pits, based on the key parameters summarised below: Total ore mined from Massawa (Central and North), Sofia and Delya pits of 18Mt of ore at an average Feasibility Financial Analysis grade of 4.2g/t Au containing 2.4M
Slide 30: Massawa…exploration continues to add inventory
Massawa…exploration continues to add inventory Reserves Felsic intrusion Resources Ultramafics Significant Q4 intercept Conductive rocks Drill hole Siltstones Open mineralization Late dyke Major structure KBRC209 2nd order structure 11m @ 5.56g/t KBRC204 TNRC023A 4m @ 2.51g/t 12m @ 3.22g/t 52m @ 2.2
Slide 31: Randgold reserves and resources
Randgold reserves and resources1… Oz 000 25 Ore reserves down on the back of partial replenishment of depletion 20 18.8Moz @ 3.6g/t Group ore reserve grade improved 5% supported by 19.5Moz @153.4g/t additions from Yalea South Transfer Zone and Kibali’s KCD deposit 10 Group mineral resources 13.8Moz
Slide 32: Targeted Procurement Savings…2019-2020
Targeted Procurement Savings…2019-2020 $84M targeted in 2019 $56M targeted in 2020 2019 Budgeted
Slide 33: 2019 Outlook
2019 Outlook1… Production Cost of Sales4 Cash Costs2 AISC2 Capital Gold (koz) ($/oz) ($/oz) ($/oz) Expenditures 5,100-5,600 880-940 650-700 870-920 ($M) Production Cost of Sales4 C1 Cash Costs2 AISC2 Copper (mlb) ($/lb) ($/lb) ($/lb) 1,400- 1,700 375-430 2.30-2.70 1.70-2.00 2.40-2.90 Exploration and
Slide 34: FILTERS
Striving to be the world’s most valued gold mining business by finding, developing and owning the best assets, with the best people, to deliver sustainable returns for our owners and partners… It applies principally to gold (copper) It is located in a world class geological gold district We have the
Slide 35: Appendix A – Fourmile Significant Intercepts
Appendix A – Fourmile Significant Intercepts1 Drill Results highlighted in Q4 2018 presentation Core Drill Hole2 Azimuth Dip Interval (m) Width (m)3 Au (g/t) 909.5 - 910.7 1.2 5.0 1. All intercepts calculated using a 5 g/t Au cutoff 916.8 - 918.3 1.5 5.4 and are uncapped; minimum intercept width is
Slide 36: Appendix B – Turquoise Ridge Significant Intercepts
Appendix B – Turquoise Ridge Significant Intercepts1 Drill Results from Q3 2018 Core Drill Hole 2 Azimuth Dip Interval (m) Width (m) 3 Au (g/t) TS1804C 292 -75 1008-1018.1 9.1 5.4 TU03431 125 -40 165.5-178 12.5 10.2 TU03432 325 -55 161.4-176 14.6 9.5 TU03432 325 -55 194.2-207.6 9.9 13.2 TU03434 340
Slide 37: Appendix C – Loulo Significant Intercepts
Appendix C – Loulo Significant Intercepts1 1. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum intercept width is 1 m; internal dilution is equal to or less than 25% total width 2. For Loulo 3 – MZ2: Width relates to the downhole width. 3. For Yalea: Width relates to tru
Slide 38: Appendix D – Sani Significant Intercepts
Appendix D – Sani Significant Intercepts1 1. All intercepts calculated using a 0.5g/t Au cutoff and are uncapped; minimum intercept width is 2m; internal dilution is less than 25% total width. 2. Sani drill hole nomenclature: SN (Sani) followed by type (AC: Air Core) with no designation of the year.
Slide 39: Appendix D – Jane AOI Significant Intercepts
Appendix D – Jane AOI Significant Intercepts1 1. All intercepts calculated using a 0.5g/t Au cutoff and are uncapped; minimum intercept width is 2m; internal dilution is less than 25% total width. 2. Jane drill hole nomenclature: BD (Jane – previously Badenou) followed by type (AC: Air Core; TR: Tre
Slide 40: Appendix D – Katiere Target Significant Intercepts
Appendix D – Katiere Target Significant Intercepts1 1. All intercepts calculated using a 0.5g/t Au cutoff and are uncapped; minimum intercept width is 2m; internal dilution is less than 25% total width. 2. Katiere drill hole nomenclature: KTI (Katiere) followed by type (AC: Air Core) with no designa
Slide 41: Appendix D – Bafretou South Significant Intercepts
Appendix D – Bafretou South Significant Intercepts1 1. All intercepts calculated using a 0.5g/t Au cutoff and are uncapped; minimum intercept width is 2m; internal dilution is less than 25% total width. 2. Bafretou Shouth drill hole nomenclature: BFS (Bafretou South) followed by type (AC: Air Core;
Slide 42: Appendix D – Mercator AOI Significant Intercepts
Appendix D – Mercator AOI Significant Intercepts1 1. All intercepts calculated using a 0.5g/t Au cutoff and are uncapped; minimum intercept width is 2m; internal dilution is less than 25% total width. 2. Mercator drill hole nomenclature: MT (Mercator) followed by type (AC: Air Core) with no designat
Slide 43: Appendix D – Mercator AOI Significant Intercepts Continued
Appendix D – Mercator AOI Significant Intercepts Continued1 1. All intercepts calculated using a 0.5g/t Au cutoff and are uncapped; minimum intercept width is 2m; internal dilution is less than 25% total width. 2. Mercator drill hole nomenclature: MT (Mercator) followed by type (AC: Air Core) with n
Slide 44: Appendix D – Shadow AOI Significant Intercepts
Appendix D – Shadow AOI Significant Intercepts1 1. All intercepts calculated using a 0.5g/t Au cutoff and are uncapped; minimum intercept width is 2m; internal dilution is less than 25% total width. 2. Shadow trench nomenclature: SH (Shadow) followed by type (TR: Trench) with no designation of the y
Slide 45: Appendix D – Belekelo Bend AOI Significant Intercepts
Appendix D – Belekelo Bend AOI Significant Intercepts1 1. All intercepts calculated using a 0.5g/t Au cutoff and are uncapped; minimum intercept width is 2m; internal dilution is less than 25% total width. 2. Belekolo Bend drill hole nomenclature: BB (Belekolo Bend) followed by type (AC: Air Core) w
Slide 46: Appendix E – Kibali Significant Intercepts
Appendix E – Kibali Significant Intercepts1 Drill Results from Q4 2018 RC Drill Hole Azimuth Dip Interval (m) Width (m) Au (g/t) ORRC0010 290 -60 32.0 - 34.0 2 0.66 1. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; ORRC0009 290 -60 no significant intercepts > 0.5gpt Au minimum
Slide 47: Appendix F – Massawa Significant Intercepts
Appendix F – Massawa Significant Intercepts1 Drill Results from Q4 2018 1. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; 2 3 Core Drill Hole Azimuth Dip Interval (m) Width (m) Au (g/t) minimum intercept width is 2 m; internal dilution is equal to or less than KBRC078 157 -50
Slide 48: Appendix F – Massawa Significant Intercepts
Appendix F – Massawa Significant Intercepts1 Drill Results from Q4 2018 1. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; Core Drill Hole2 Azimuth Dip Interval (m) 3 Width (m) Au (g/t) minimum intercept width is 2 m; internal dilution is equal to or less than KBRC099 156 -47 5
Slide 49: Appendix F – Massawa Significant Intercepts
Appendix F – Massawa Significant Intercepts1 Drill Results from Q4 2018 1. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; 2 Core Drill Hole Azimuth Dip Interval (m) Width (m)3 Au (g/t) minimum intercept width is 2 m; internal dilution is equal to or less than 18 - 20 2 0.8 25%
Slide 50: Appendix F – Massawa Significant Intercepts
Appendix F – Massawa Significant Intercepts1 Drill Results from Q4 2018 1. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; 2 3 Core Drill Hole Azimuth Dip Interval (m) Width (m) Au (g/t) minimum intercept width is 2 m; internal dilution is equal to or less than 4 - 46 42 1.33 2
Slide 51: Appendix G Endnote 1
Appendix G Endnote 1 “Free cash flow” is a non-GAAP financial performance measure which deducts capital expenditures from net cash provided by operating activities. Barrick believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing
Slide 52: Reconciliation of Gold Cost of Sales to Cash Costs and AISC
non-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Reconciliation of Gold Cost of Sales to Cash costs, All-in sustaining costs and All-in costs, including on a per ounce basis For the y
Slide 53: Other
4 Other Other adjustments include adding the net margins related to power sales at Pueblo Viejo of $nil and $nil, respectively, for the three months and year ended December 31, 2018 (2017: $nil and $nil, respectively; 2016: $5 million), adding the cost of treatment and refining charges of $nil and $
Slide 54: Endnote 4
For the three months ($ millions) For the years ended December 31 ended December 31 2018 2017 2016 2018 2017 By-product credits $131 $135 $184 $26 $30 Non-controlling interest (45) (30) (53) (10) (6) By-product credits (net of non-controlling interest) $86 $105 $131 $16 $24 Endnote 4 “C1 cash costs”
Slide 55: Endnote 5
2 Cost of sales per pound related to copper is calculated using cost of sales including our proportionate share of cost of sales attributable to equity method investments (Zaldívar and Jabal Sayid), divided by consolidated copper pounds sold (including our proportionate share of copper pounds sold f
Slide 56: Endnote 7
Endnote 7 Total reportable incident frequency rate (TRIFR) is a ratio calculated as follows: number of reportable injuries x 1,000,000 hours divided by the total number of hours worked. Reportable injuries include fatalities, lost time injuries, restricted duty injuries, and medically treated injuri
Slide 57: Endnote 10
Endnote 10 Attributable capital expenditures are presented on the same basis as guidance, which includes our 60% share of Pueblo Viejo and South Arturo, our 63.9% share of Acacia and our 50% share of Zaldívar and Jabal Sayid. Endnote 11 Reflects production and sales from Goldstrike, Cortez, and Sout
Slide 58: Total cash cost per ounce definitions
cost per ounce also include our share of our equity accounted joint ventures’ total cash costs and total cash cost per ounce. During periods of extended mine stoppages in which there is no gold production and sales for a specific operation, fixed costs associated with the operation that would ordina
Slide 59: NON-GAAP GROUP
NON-GAAP NON-GAAP GROUP Unaudited Unaudited Unaudited Unaudited Unaudited quarter quarter quarter 12 months 12 months ended ended ended ended ended 31 Dec 30 Sep 31 Dec 31 Dec 31 Dec $000 2018 2018 2017 2018 2017 Group Revenue per IFRS1 334 814 243 566 328 618 1 135 317 1 280 217 Gold sales adjustme
Slide 60: NON-GAAP GROUP Total income
NON-GAAP GROUP Unaudited Unaudited Unaudited Unaudited Unaudited quarter quarter quarter 12 months 12 months ended ended ended ended ended 31 Dec 30 Sep 31 Dec 31 Dec 31 Dec $000 2018 2018 2017 2018 2017 Group Total income1 375 369 278 076 343 695 1 256 570 1 307 095 Total costs1 327 221 189 184 230
Slide 61: NON-GAAP GOUNKOTO
Other expenses ($000) 23 167 5 680 17 288 44 751 33 314 Profit from mining activity ($000) 71 124 66 190 62 805 252 042 313 491 NON-GAAP GOUNKOTO Unaudited Unaudited Unaudited Unaudited Unaudited quarter quarter quarter 12 months 12 months ended ended ended ended ended 31 Dec 30 Sep 31 Dec 31 Dec 31
Slide 62: NON-GAAP TONGON
NON-GAAP TONGON Unaudited Unaudited Unaudited Unaudited Unaudited quarter quarter quarter 12 months 12 months ended ended ended ended ended 31 Dec 30 Sep 31 Dec 31 Dec 31 Dec 2018 2018 2017 2018 2017 Tongon (100%) Gold sales ($000) 97 691 29 334 105 807 291 099 368 765 Cost of sales applicable to go
Slide 63: Endnote 16
Endnote 16 The feasibility study of the Massawa project was completed at the end of 2018. The study includes the open pit material from four pits namely, Massawa Central and North Zone, Sofia, and Delya. The deposits consist of free milling ore from the oxide contribution of the pits together with t
Slide 64: Annual Resource and Reserve Declaration
MASSAWA MINERAL RESOURCES AND ORE RESERVES Attributable Tonnes1 (Mt) Grade1 (g/t) Gold1 (Moz) gold2 (Moz) at 31 December Category 2018 2017 2018 2017 2018 2017 2018 2017 MINERAL RESOURCES3,4 Open pits Measured - - - - - - - - Indicated 23 24 4.0 3.8 3.0 2.9 2.5 2.4 Inferred 3.7 10 2.2 2.3 0.26 0.79
Slide 65: Morila Sub total Tongon
Morila 40% 40% Measured 12 16 0.53 0.51 0.20 0.26 0.082 0.10 Indicated 0.39 0.25 1.4 1.6 0.018 0.013 0.0072 0.0052 Sub total Measured and indicated 12 16 0.56 0.53 0.22 0.27 0.089 0.11 Inferred - 0.94 - 0.45 - 0.014 - 0.0055 Tongon 90% 90% Measured 6.7 7.9 2.4 2.3 0.51 0.59 0.45 0.53 Indicated 14 16
Slide 66: Reserve pit optimisation notes
4 Reserve pit optimisations are carried out at a gold price of $1 000/oz for all pits except for KCD pit in Kibali which is carried out at a gold price of $1 100/oz. Underground Ore Reserves are also based on a gold price of $1 000/oz. Dilution and ore loss are incorporated into the estimation of re