Barrick Mining Corporation · TSX:ABX

Barrick Mining — Barrick Gold — BMO Capital Markets 2008 Global Metals and Mining Conference

24 slides from Barrick Mining's conference presentation, Feb 25, 2008

  1. Slide 1: Strategy Investment Execution Results

    Strategy Investment Execution Results BMO Capital Markets 2008 Global Metals and Mining Conference

  2. Slide 2: Cautionary Statement on Forward-Looking Information

    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 financial or operating performance and other statements that express management’s expectations or estim

  3. Slide 3: Gold is Front Page News

    Gold is Front Page News ƒ “Gold is the New Global Currency” – FT, Jan. 7 ƒ “Gold is the Hot New Commodity” – WSJ, Jan. 31 ƒ “Fed Moves to Curb Recession – Investors Flock to Gold, Fans in the Mainstream” – WSJ, Jan. 31 ƒ “Gold Price Soars on South African Power Cuts” – FT, Jan. 26 ƒ “Gold Fever Stri

  4. Slide 4: A New Paradigm for Gold

    A New Paradigm for Gold ƒ Declining mine supply – Mature assets – Scarcity of new discoveries – Longer permitting and development timelines ƒ Central bank sales slowing ƒ Robust fabrication/jewelry demand ƒ Strong investment demand

  5. Slide 5: Positioned for Rising Prices

    Positioned for Rising Prices ƒ Placer Dome acquisition ƒ Assembled industry’s deepest project pipeline ƒ Increased leverage to gold price ƒ Constructed 5 projects in 3 years ƒ Strong balance sheet – year end cash of $2.2 billion

  6. Slide 6: Total Cash Costs Per Ounce

    Total Cash Costs Per Ounce ƒ 2007 vs 2008 cost guidance (1) 2008 Guidance $390-$415 $400 17 380 Labor, 19 Consumables & Other 360 2007 14 Royalties, FX & $350 Silver Credits Energy 340 320 300 ƒ 2008 gold production guidance 7.6 - 8.1 million ounces (1) Refer to final slide point #1

  7. Slide 7: Competitive Costs

    Competitive Costs Global Cash Costs(1) 1000 Current Gold Price (+$900) 800 Barrick Margin 600 ~$500 US$/oz 400 200 0 0% 20% 40% 60% 80% 100% Cumulative Production (%) -200 Source: GFMS (1) Refer to final slide point #1

  8. Slide 8: Competitive Costs

    Competitive Costs Global Cash Costs(1) 1000 Current Gold Price (+$900) 800 Barrick Margin 600 ~$600 with copper US$/oz 400 credit 200 0 0% 20% 40% 60% 80% 100% Cumulative Production (%) -200 Source: GFMS (1) Refer to final slide point #1

  9. Slide 9: Focus on Cost Management

    Focus on Cost Management ƒ Commodity Hedging ƒ Supply Chain Initiatives ƒ Continuous Improvement ƒ Energy Initiatives ƒ Cash cost increase in 2008 expected to be significantly lower than percentage increase from 2006-2007

  10. Slide 10: Record of Reserve Replacement

    Record of Reserve Replacement P&P Reserves(1) millions of ounces ƒ Reserves replaced 124.6 every year since 123.1 +1.5 Moz Homestake and Placer Dome acquisitions ƒ Extensive positions on the world’s best belts ƒ Strong exploration focus ƒ Deep project pipeline (1) Refer to final slide point #2 100 2

  11. Slide 11: Growing Reserves

    Growing Reserves P&P Reserves(1) millions of ounces Reserve Replacement 11.007 124.6 123.1 0.703 Africa 2.729 3.826 N. America 3.201 2.504 S. America 3.579 2.452 Australia 1.498 Depletion Pacific/Asia to Process 9.485 100 2006 2007 (1) Refer to final slide point #2

  12. Slide 12: Growing Resources

    Growing Resources M&I Resources(1) Resource millions of ounces Replacement 26.637 50.6 3.131 Africa 14.954 35.0 N. America 2.729 3.201 S. America 4.970 3.579 1.498 Australia 3.582 Depletion Pacific/Asia to Reserves 11.007 0 2006 2007 (1) Refer to final slide point #2

  13. Slide 13: Deepest Project Pipeline

    Deepest Project Pipeline EXPLORATION FEASIBILITY PERMITTING CONSTRUCTION PRODUCTION Ruby Hill Buzwagi Cortez Hills Pueblo Viejo Pascua-Lama Cerro Casale* Donlin Creek Reko Diq Sedibelo Fedorova Kabanga New Projects * 94.7% of Arizona Star acquired to date

  14. Slide 14: Buzwagi - Tanzania

    Buzwagi - Tanzania ƒ 2007 reserve: 3.6 Moz(1) ƒ +10 year mine life ƒ 250,000-260,000 oz/yr(2) ƒ $270-$280 cash costs(2,3) ƒ Capex: $400 million(4) ƒ Expected to begin production in H2 2009 (1) Refer to final slide point #2 (2) First 5 years (3) Refer to final slide point #1 (4) Pre-production

  15. Slide 15: Cortez Hills - Nevada

    Cortez Hills - Nevada ƒ 2007 reserve: 11.5 Moz(1,4,5) ƒ +10 year mine life ƒ 0.95-1.0M oz per year(2,4,5) ƒ $280-290 cash costs(2,3) ƒ Capex: $480-500 million(4,6) ƒ Record of Decision expected in H2 2008 (1) Refer to final slide point #2 (2) 1st 5 years (3) Refer to final slide point #1 (4) 100% ba

  16. Slide 16: Pueblo Viejo - Dom. Republic

    Pueblo Viejo - Dom. Republic ƒ 2007 reserve: 20.4 Moz(1,4) ƒ +20 year mine life ƒ ~1.0 million oz/yr(2,4) ƒ ~$250/oz cash costs(2,3) ƒ Capex: ~$2.7 billion(4,5) (1) Refer to final slide point #2 (2) First 5 years (3) Refer to final slide point #1 (4) 100% basis (5) Pre-production

  17. Slide 17: Other Gold Projects

    Other Gold Projects ƒ All in feasibility stage Donlin Creek, Alaska Reko Diq, Pakistan Cerro Casale, Chile

  18. Slide 18: Non Gold Projects

    Non Gold Projects ƒ Feasibility studies on PGM projects expected in 2008 Kabanga Nickel, Tanzania Fedorova PGM, Russia Sedibelo PGM, S. Africa

  19. Slide 19: Exploration Supergiant Targets

    Exploration(1) Supergiant Targets Donlin Creek Hemlo Goldstrike & Cortez Pueblo Viejo Reko Diq Porgera Kainantu Pascua-Lama Cerro Casale Golden Mile > 20Moz Au > 5Moz Au (1) Refer to final slide point #3

  20. Slide 20: Papua New Guinea

    Papua New Guinea Lihir INDONESIA BARRICK Ok Tedi Porgera BARRICK Kainantu Current & Past Producer Development & Exploration Tolukuma Port Moresby INDIAN OCEAN PACIFIC OCEAN AUSTRALIA Misima

  21. Slide 21: 2007 Results

    2007 Results ƒ 8.06 Moz of gold at $350/oz(1) ƒ 402 Mlbs of copper at $0.83/lb(1) ƒ Net income: $1.12 billion ($1.29 per share) ƒ Operating cash flow: $1.73 billion ($2.00/share) ƒ Adjusted net income: $1.73 billion ($2.00/share)(2) – 11% increase from 2006 ƒ Adjusted EBITDA: $3.06 billion ($3.53/sh

  22. Slide 22: Gold's Superior Returns

    Gold’s Superior Returns Asset Mix Performance – to Dec. 31, 2007 % total return 1 year 3 years 5 years DXY (US$ index) -8.3 -5.1 -24.7 3 month T-Bill 5.0 13.5 16.3 S&P 500 5.5 28.2 82.9 Gold 31.0 90.2 139.6 ABX (US) 37.0 78.0 185.7 Source: Bloomberg

  23. Slide 23: Why Barrick?

    Why Barrick? ƒ Largest reserve base on most prolific trends ƒ Deep project pipeline ƒ Operating and mine building expertise ƒ Strong financial position ƒ Leverage to gold price – right now and in the future

  24. Slide 24: Footnotes

    Footnotes 1. Total cash costs is 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 this operating performance measure see pages 45-46 of the Company

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