Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — RBC Capital Markets Gold Conference 2011
22 slides from Barrick Mining's conference presentation, Nov 10, 2011
Slide 1: Building Value in Everything We Do
Building Value in E Everything hi WWe DDo RBC Capital Markets Gold Conference – November 10-11, 2011
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 our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future perfor
Slide 3: Global Footprint
Global Footprint 2010 P&P Reserves(1) North America North America 41% 2011E Production Australia Africa 9% Pacific 11% North America South 44% America 39% Africa 7% Australia Pacific South South Africa 25% America 24% America i Australia Pacific Mine Project See final slide #3 1 Industry Profitabili
Slide 4: Equity/Commodity Disconnect
Equity/Commodity Disconnect Consensus Estimates (CE) vs Actual Prices Consensus view Forward Spot ~$1,890 US$/oz has consistently Forward Curve 1,800 underestimated Current ~$1,725 2011CE actual prices 1 600 1,600 Equities should Actual YTD Avg. ~$1,493 respond as price 1,400 forecasts recalibra
Slide 5: Bullish on Gold
Bullish on Gold Gold retains purchasing power while other currencies are being devalued: – monetary and fiscal reflation & sovereign debt concerns – low real interest rates – Central C t l Bank B k iintervention t ti iin currency markets k t – inflation in emerging markets – excessive global FX re
Slide 6: Net Official Sector Buying
Net Official Sector Buying (tonnes) 663 Net official sector buying for the first 484 time since 1988 479 H1 2011 purchases 365 are more than 235 double that of full year 2010 34 2004 2005 2006 2007 2008 2009 2010 H1 2011 73 Sources: GFMS, WGC 192 7 Mine Supply vs Gold Price Mine Supply Gold Pric
Slide 7: Positive Copper Outlook
Positive Copper Outlook Demand being supported by the urbanization of emerging markets such as China and India – China will have more than 220 +1 million plus population cities by 2025 compared to Europe with 35 today – China China’ss economy expected to be the largest and India’s India s in the t
Slide 8: Strategy
Strategy Leverage our competitive strengths to grow and improve the quality of our production base by: – maximizing the potential of our existing operations and land positions – developing our project pipeline – securing new deposits through exploration and acquisitions – focus is on gold and gold
Slide 9: 2011 Strong Financial Results
2011 STRONG FINANCIAL RESULTS Nine months ended September 30 Realized Gold Gold Margin(1) Gold Margin(1) Price((1)) 1,550 11550 550 Total Cash Cost Basis Net Cash Cost Basis $US/oz $US/oz $US/oz 1,225 1225 1,105 1105 11184 1,184 184 31% 38% 887 887 785 785 41% 9M 10 9M 11 9M 10 9M 11 9M 10 9M 11 9M
Slide 10: Margin Expansion
Margin Expansion Total Cash Margins(1) US$/oz 1,290 79% Increase in 1,068 Total Cash Margins 927 952 804 834 722 401 403 440 437 445 453 16% 392 increase in Total Cash Costs Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 (1) See final slide #1 15 Margin Expansion Net Cash Margins(1) US$/oz 1,415 72% Incr
Slide 11: Leverage to Gold
Leverage to Gold Barrick EPS & CFPS vs Gold Barrick’s adjusted Returns ((US$) $) 900% net ea earnings nings and ( = adjusted) 800% cash flow growth (1) 700% has significantly 600% outpaced the rise in 500% gold prices g p over the 400% past 7 years 300% 200% 100% (1) See final slide #1. #1 All EPS
Slide 12: Capital Allocation Strategy
Capital Allocation Strategy A Balanced Approach Track record of Invest in high Balance sheet paying a return projects management progressive dividend d d d Improve quality of Maintain strong credit Dividend increased portfolio with long life, ratings, preserve access by 25%(1); low cost gold and to
Slide 13: History of Gold Reserve Growth
History of Gold Reserve Growth THROUGH ACQUISITION AND EXPLORATION Proven and Probable – millions of ounces of gold ~140(1) 140 TOTAL EXP’N 20 21 Moz 1990 109 110 Divestitures 2010 TOTAL TOTAL MINED ACQ’D (1) See final slide #3 21 Acquisition & Exploration Results Two quality copper assets added t
Slide 14: 2011 Exploration Program
History of Reserve/Resource Growth 50 Reserve/resource ounces added post acquisition or discovery ounces millions 40 ACQUIRED ADDED GRASSROOTS 30 20 10 0 23 2011 Exploration Program(1) $370-$390M ~80% 38% North America African Barrick $210M 13% 11% South America Australia A t li Pacific 38% 2011 e
Slide 15: Acquisition & Exploration Results
Acquisition & Exploration Results Two potential world-class gold discoveries in Nevada – Red Hill – 3.5 M oz inferred resource(1) – Goldrush Step-out holes north of Red Hill extend mineralization byy 2,000 , feet Drilling between Red Hill and Goldrush is confirmingg continuityy of the minerali
Slide 16: Result Highlights
80ft @ 0.16 opt & 30ft @ 0.25 opt 60ft @ 0.20 opt & Result Highlights 40ft @ 0.11 opt p Drill Hole RED 120ft @ 0.17 opt Grade x Thickness Roberts Mountains HILL Thrust Less than 5 oz-ft 5 to 10 oz oz-ft ft 10 to 20 oz-ft 20 to 50 oz-ft Greater than 50 oz-ft opt = ounces per ton gold 128ft @ 0.316 op
Slide 17: Pueblo Viejo In Construction
World Class Operations and Projects Total Global Gold Mines by Size 5 mines Barrick Mines by Size >1 Moz (2010 gold production) 9 mines >800 800 Koz K 3 Goldstrike Veladero 23 mines i Cortez >500 Koz 4 159 mines >100 Koz 5 3 Projects ~1 Moz Pueblo Viejo 17 2 Projects ~800 800 Koz Cerro Casale Turquo
Slide 18: Pascua-Lama In Construction
Pascua‐Lama IN CONSTRUCTION Mill Building Argentina Initial production expected in mid-2013 Expected gold production of 800-850 K oz/year at negative cash costs of $225- $275/oz(1) at $25/oz silver Expected silver production of Los Amarillos Camp ~35 M oz/year(2) Pre-production capital of $4
Slide 19: Low Cash Cost Projects
Low Cash Cost Projects Global Gold Industry Cash Cost Curve(1) $1,500 $1,000 $ , $/oz $500 US$ Barrick 2011E Total Cash Costs $460-$475(2) Pueblo Viejo $275-$300(2,3) $0 Cerro Casale $125-$175(2,3) Pascua-Lama -$225 $225 to -$275 $275(2,3) (2 3) -$500 0% 20% 40% 60% 80% 100% (1) Source: GFMS (Q2 201
Slide 20: Projects – Next Generation
Excellent Growth Potential Gold/silver target revenue growth of ~65%(1) Copper pp targetg revenue growth g of ~200%(1) Gold Production Silver Production Copper Production (Moz) ~9.0 (Moz) ~50 (Mlbs) ~1,000 Pascua Zaldivar Sulphides -Lama Lumwana Expansion Pueblo Jabal Sayid 7.8 Net Viejo Lumwana
Slide 21: Investment Case for Barrick
Investment Case for Barrick Strong price supportive fundamentals for gold, silver and copper Major beneficiary of rising metal prices with industry’ss largest gold production and stable industry operating costs Reflected in expanding margins margins, record earnings, earnings and high returns
Slide 22: Footnotes
Footnotes 1. Adjusted net earnings, adjusted operating cash flow, return on equity, EBITDA, net cash costs per ounce, net cash margin per ounce, total cash costs per ounce, total cash margin per ounce, total cash costs per pound and average realized price per ounce/pound are non-GAAP financial measu
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