Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Gold Forum Americas 2019
29 slides from Barrick Mining's conference presentation, September 2019
Slide 1: Synonymous with Value Creation
Synonymous with Value Creation Gold Forum Americas – Denver, September 2019
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, o
Slide 3: Disciplined and thoughtful strategy secures six Tier 1 mines
Disciplined and thoughtful strategy secures six Tier 1 mines3… BARRICK - RANDGOLD NEVADA JV EXECUTION and DELIVERY ACACIA ACQUISITION Consolidate management of world’s largest gold complex Additional Tier 1 asset and more synergies Opportunity and synergy identification – detailed analysis Execution
Slide 4: Scorecard of Achievements
Scorecard of Achievements… What We Outlined One Year Ago What We have Achieved Formed Nevada Joint Venture - premier synergy creation Focus on Tier One Gold Assets3 and strategic assets Pueblo Viejo plant expansion - prefeasibility study advancing Nevada JV to drive FCF growth without issuin
Slide 5: Barrick / Randgold unlocks Nevada and drives consolidation
Barrick / Randgold unlocks Nevada and drives consolidation…delivers 6 Tier 1 assets3 Most valued company Best people Best assets Delivering leading returns Gold mines ranked by 2018 gold productioni (Moz) Currently operated by Barrick 4.1 1.3 1.3 1 1 0.9 0.85 0.8 0.7 0.7 0.7 0.6 0.6 0.6 i. Source: S
Slide 6: Group financial results
Group financial results… H1 2019 adjusted EBITDA of $1,974 million4 (H1 2018: $1,499 Financial Results H1 2019 million) is higher than the prior year given the merger with Revenue ($ million) 4,156 Randgold Net earnings (loss) ($ million) 305 Net cash provided by operating activities of $954 million
Slide 7: Group operating results
Group operating results… Strong H1 2019 gold production, driven by solid H1 performances across the portfolio including Loulo- Gold operating results 2019 Gounkoto, Veladero and Kibali Production (oz 000)16 2,720 Expected annual gold production at upper end of Cost of sales ($/oz)10 956 2019 group g
Slide 8: Annual gold production expected at top end of guidance range
Annual gold production expected to be at top end of guidance range…lower end of cost guidance Total forecast annual gold production attributable to Barrick13: 5 100koz – 5 600koz at Cost of Sales10 of $910 - $970/oz, Total Cash Costs11 of $650 - $700/oz and AISC11 of $870 - $920/oz N America Donlin
Slide 9: Barrick Nevada
Barrick Nevada… Solid H1 2019 production compared to H1 2018 driven by Barrick Nevada14 H1 2019 increased ore processed at the Goldstrike roaster, higher leach production at Crossroads, higher open-pit grades at Goldstrike, Total tonnes mined (000) 83,661 as well as better throughput and grade at Tu
Slide 10: Nevada Gold Mines JV
Nevada Gold Mines JV… Turquoise Twin Creeks Nevada Gold Mines Joint Venture transaction closed Ridge N South Arturo on 1 July, establishing Nevada Gold Mines LLC – Winnemucca Goldstrike Carlin Long Canyon Elko Barrick (operator, 61.5%); Newmont Goldcorp (38.5%) Lone Tree Gold Quarry Emigrant Hosts t
Slide 11: Fourmile…more high grade on the horizon
Fourmilei…more high grade on the horizon A A’ Tertiary N Rhyolite Upper Plate Fourmile Gravel Goldrush 1km A’ FM19-11DW1ii 10.7 m @ 24.8 g/t & 4.6 m @ 49.4 g/t & Fourmile P & P Reserves 6.1 m @ 21.2 g/t Goldrush MII Resource Exploration Upside Mineralized footprint Discovery drill hole Nevada Gold M
Slide 12: Pueblo Viejo
Pueblo Viejo… Dominican Republic Gold production in H1 2019 was 3% higher year-over-year Pueblo Viejo19 (60%) H1 2019 primarily due to higher throughput rates and increased autoclave availability, partially offset by lower recovery Open pit tonnes mined (000) 13,186 Production expected to increase i
Slide 13: Pueblo Viejo JV upside…expansion to extend Life of Mine
Pueblo Viejo JV upside…expansion to extend Life of Mine Expansion study Proposed expansion includes an extension of the mine’s processing plant and tailings capacity with an estimated initial capital investment approximately $1.3 billion dollars (100% basis) and the potential to extend the life of t
Slide 14: Veladero
Veladero… Argentina Year-to-date gold production has benefited from leach pad Veladero (50%) H1 2019 recovery initiatives in the second quarter that resulted in Open pit tonnes mined (000) 17,032 improved recoveries on material stacked in prior periods and a Average grade processed (g/t) 0.75 reduct
Slide 15: Porgera
Porgera… Papua New Guinea Porgera (47.5%) H1 2019 H1 2019 production increased by 57% year-over- year as the prior period was impacted by an Ore tonnes processed (000) 1,230 earthquake, which limited throughput. Average grade processed (g/t) 3.22 Special Mining Lease extension – Recovery rate (%) 90
Slide 16: Loulo-Gounkoto…delivers solid performance
Loulo-Gounkoto…delivers solid performance Mali Gold production in H1 2019 benefited from high grades at the Loulo-Gounkoto20 (80%) H1 2019 Gounkoto South pit, in-line with plan Total tonnes mined (000) 16,827 Gounkoto underground feasibility study making progress Average grade processed (g/t) 4.47 I
Slide 17: Kibali…another strong half
Kibali…another strong half DRC Year-to-date gold production benefited from increased feed grade, Kibali21 (45%) H1 2019 as a result of blending more higher underground material, in line Total tonnes mined (000) 6,100 with the mine plan Average grade processed (g/t) 3.88 On track to meet or beat guid
Slide 18: Acacia acquisition…summary of terms
Acacia acquisition…summary of terms On 19 July 2019, Barrick and Acacia jointly announced that they had reached agreement on the terms of Barrick’s offer for the acquisition of the ordinary share capital of Acacia that it did not already own, by way of a UK Scheme of Arrangement On 3 September 2019
Slide 19: Copper mines
Copper mines…. Lumwana, Zambia Lumwana (100%) H1 2019 The implementation of efficiency initiatives in H1 2019 drove costs Copper produced (lbs million) 110 lower year-over-year Cost of sales ($/lb) 2.07 On track to meet production and cost guidance C1 cash costs ($/lb)12 1.68 Engagement with governm
Slide 20: Future Growth…exploration and development
Future Growth…exploration and development NORTH AMERICA AFRICA Loulo-Gounkoto Brownfields exploration Fourmile confirming continuity and growth confirms potential to replace depletion and potential. Drilling for additional new maintain ongoing 10 year operating plan discoveries in district Donlin Go
Slide 21: Our Sustainability Vision
Our Sustainability Vision… Barrick’s sustainability vision is to create long-term value for all our stakeholders. We contribute to the social and economic development of our host countries and communities. We protect the safety and health of our workforce. We respect human rights. And we manage our
Slide 22: 2018 Sustainability Highlights
2018 Sustainability Highlights… The full 2018 Sustainability Report can be viewed at https://www.barrick.com//sustainability/reports-policies/
Slide 23: Looking Ahead…building our business
Looking Ahead…building our business Opportunity Strategic objectives Nevada Gold Mines Operational delivery: progress Goldrush feasibility study and realisation of scheduled synergies Fourmile and Nevada Significant resource growth through extension to current orebodies and new discoveries Explo
Slide 24: Barrick…Synonymous with Value Creation
Barrick…Synonymous with Value Creation Relative Share Price Performancei,ii Since Barrick Randgold Transaction Announcementiii Since Nevada Gold Mines Transaction Closureiv 200 Barrick’s Shares are ~90% Up Since the Barrick’s Shares are ~33% Up Since the 140 Randgold Transaction Announcement Nevada
Slide 25: Endnotes
Endnotes 1. Year-on-year. 2. Incidents that have the highest negative impacts on human health, community property or the environment. Based on the two different classification systems of legacy Barrick and former Randgold. 3. A Tier One Gold Asset is a mine with a stated life in excess of 10 years w
Slide 26: Endnotes
Endnotes 7. Presented on a cash basis as a result of adopting IFRS 16 Leases starting in the first quarter of 2019. Please refer to page 32 of the MD&A accompanying Barrick’s second quarter 2019 financial statements filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov for more details. 8. The
Slide 27: Endnotes
Endnotes 13. 2019 Guidance includes our 60% share of Pueblo Viejo, our 80% share of Loulo-Gounkoto, our 89.7% share of Tongon, our 63.9% share of Acacia, our 50% share of Zaldívar and Jabal Sayid, our 45% of Kibali, and our share of joint operations. Furthermore, 2019 Guidance includes Cortez (100%)
Slide 28: Endnotes
Endnotes Reserves and resources of Newmont Goldcorp in Nevada are stated on an attributable basis as of December 31, 2018 and include Carlin, Phoenix, Lone Tree, Twin Creeks (including Newmont Goldcorp’s 25% equity in Turquoise Ridge) and Long Canyon. Proven reserves of 46.6 million tonnes grading 3
Slide 29: APPENDIX A – Fourmile Significant Intercepts
APPENDIX A – Fourmilei Significant Interceptsii i. Fourmile is excluded from Nevada Gold Mines Drill Results from FM19-11DW1 ii. All intercepts calculated using a 5 g/t Au cutoff Core Drill and are uncapped; minimum intercept width is Azimuth Dip Interval (m) Width (m)iv Au (g/t) Holeiii 0.8 m; inte