Barrick Mining Corporation · TSX:ABX

Barrick Mining — Barrick Gold — Investor Day (June 2017)

53 slides from Barrick Mining's investor day presentation, Jun 20, 2017

  1. Slide 1: A Company of Owners

    BarrickNevada ACompany ofOwners Investor Tour | June 20-21, 2017

  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 prepared by Barrick Gold Corporation ("Barrick" or the "Company"), including any information as to our strategy, projects, plans, or future financial or operating perfo

  3. Slide 3: Welcome & Opening Remarks

    ‡Ž ‘‡–‘‡˜ƒ†ƒ Barrick Nevada Investor Tour | 3 ƒ””‹ ‡˜ƒ†ƒȂ ˜‡•–‘”•‘—”‰‡†ƒ ƒ›ͳǦ —‡ʹͲ Welcome & Opening Remarks Kelvin Dushnisky Elko,Nevada Operations Overview Richard Williams Barrick Nevada Overview and Growth Bill MacNevin Codemine Ed Humphries Nevada Analytics and Operations Center Rob Neitze

  4. Slide 4: Largest industry presence in Nevada

    ƒ””‹ ‹•‡˜ƒ†ƒǯ• †—•–”›‡ƒ†‡” ƒ Largest industry presence in Nevada N E V A D A ƒ Largest gold producer in Elko Nevada and North America Turquoise Ridge JV Goldstrike Operations ƒ Two mines: Goldstrike & Reno Carson City Cortez “Barrick Nevada” ƒ One joint venture: Turquoise Ridge ƒ 30 years of opera

  5. Slide 5: Enabler of Change

    ‹ˆ›‹‰‡˜ƒ†ƒ••‡–• Enabler of Change First Step – What? Vision – How? Drive – Why? ‡Šƒ˜‡—‹–‡†‘—”‘”–‡œ ǥ„—‹Ž†‹‰‘‘—” ‘„‹‡† ǥ‹‘”†‡”–‘ ”‡ƒ–‡‡™ ƒ† ‘Ž†•–”‹‡‘’‡”ƒ–‹‘•‹ •–”‡‰–Š•„›—‹–‹‰–Š‡•‡ ‘’’‘”–—‹–‹‡•ƒ†‰”‘™–Š‡ ‡˜ƒ†ƒǡ ‘„‹‹‰ƒ••‡–•ǡ ‘’‡”ƒ–‹‘•—†‡”‘‡•‹–‡ „—•‹‡••ˆ‘”‘—”’‡‘’Ž‡ǡ ‹ˆ”ƒ•–”— –—”

  6. Slide 6: 100 Year Vision requires investment in exploration, innovation and partnerships

    ͳͲͲǦ‡ƒ”—•–ƒ‹ƒ„Ž‡ ˜‡•–‡– ”ƒ‡™‘” ƒ 100 Year Vision requires investment in exploration, innovation and partnerships Innovation Impact on $ Investment with & Global EX Productivity & uncertain ROI Sustainability Step $ Investment with Changes known ROI Close to Leadership/Systems Technical investm

  7. Slide 7: New or expanded orebodies to feed production profile

    —‹Ž†‹‰ƒ‹’‡Ž‹‡ˆ‘”–Š‡ —–—”‡ On Lease ƒ New or expanded orebodies to feed production profile Resources ƒ Integrated Technical Growth and Organic Growth ƒ Inclusive of current sites and new opportunities MINEX Sustaining Project Accelerated System Evaluations Resource Conversion Highest Value LOM Plan

  8. Slide 8: Barrick Nevada is not infrastructure constrained

    –‡‰”ƒ–‡†Žƒ‹‰‘ Ž—•‹‘ ƒ Barrick Nevada is not infrastructure constrained, particularly not post 2022 ƒ In the medium term (2017-2025), the best bang for Barrick’s buck comes from spending on MINEX and brownfield projects ƒ Longer term (2025+), Best in Class/digital/innovation or bringing new ass

  9. Slide 9: Increase oxide mill throughput and recoveries

    ƒ””‹ ‡˜ƒ†ƒȂ ‡ Š‹ ƒŽ ”‘™–Š ‹‰ŠŽ‹‰Š–• ƒ Blend roaster feed for margin to ƒ Increase production from bulk maximize free cash flow mining methods from 5% to 30% of total UG production Roaster Tons Processed 126 (tons thousands) Cortez UG Tons Mined 532 528 545 (tons thousands) 106 524 524 103 Maintena

  10. Slide 10: Short Interval Control Automated Process Control Mill Uptime

    ‘–‡–‹ƒŽ‹‰‹–ƒŽ ’ƒ –Ȃ –ƒ”–‹‰ƒ” ŠʹͲͳ͹ Short Interval Control Automated Process Control Mill Uptime (additional tons per day) (additional tons per day) (additional hours per month) 300 300 3.0 250 250 2.5 200 200 2.0 150 150 1.5 100 100 1.0 50 50 0.5 0 0 0.0 M A M J J A S O N D M A M J J A S O N D M

  11. Slide 11: Cortez: 80 miles southwest of Elko

    ‘”–‡œ‹•–”‹ –Ȃ ˜‡”˜‹‡™ ƒ 80 miles southwest of Elko Gold Acres N E V A D A ƒ 150 years of mining Pipeline Elko Cortez ƒ 1,250 employees Reno Carson City ƒ New discoveries Las Vegas Cortez Pits 2016 Reserves Cortez Hills OP Proven 0.8 Moz1 Cortez Hills UG (1.52 g/t, 16M tonnes) Probable 9.4 Moz1 (2.18

  12. Slide 12: Goldrush Phase I Feasibility

    ‘”–‡œȂ ‡‡’‘—–Š ƒ Access through Range Front Declines – Road header advancing ahead of schedule – 3,000 feet of advancement in east portal and 800 feet in west portal ƒ Feasibility Study – Added Renegade Zone to reserve – In progress, completion 3Q17 – Completed geotechnical assessments – Optimized a

  13. Slide 13: Fourmile high grade targets

    ‘Ž†”—•Š”‘˜‹†‡•‡™‹‡—–‘ƒ–‹‘’’‘”–—‹–› Repetitive Tasks ƒ Stationary: – Rail haulage – Automated chute delivery – Engineered bin systems – Automated hoisting – Smart conveyors – Auger feed systems – Ore pass delivery ƒ In motion: – Autonomous drilling – Autonomous mucking Barrick Nevada Investor Tou

  14. Slide 14: Crossroads current optionality

    ‘”–‡œȂ ’‡‹– ”‘™–Š’–‹‘ƒŽ‹–› Current Optionality Expansion of the Gold Acres Cortez/F-Canyon Pits Pipeline Gold Acres Pit Expansion Cortez Pits Gold Acres Pipeline Cortez Pits Cortez Hills OP Cortez Hills Crossroads Cortez Hills UG Additional Pipeline and Crossroads Phases Expansion of Pediment 0 mi

  15. Slide 15: Acquisition from Coral Gold

    ‘„‡”–•‘”‘Œ‡ –Ȃ ‡™‡•–”ƒ•ƒ –‹‘ Acquisition from Coral Gold ƒ Deal closed June 7, 2017 ƒ Cash consideration of US$15.75 M Robertson Property ƒ Return of 4.15 M common shares ƒ Sliding scale 1% to 2.25% NSR ƒ Shallow, open pit, non-refractory ore Gold Acres Process Facilities ƒ Robertson part of a la

  16. Slide 16: Goldstrike: 50 miles northeast of Elko

    ‘Ž†•–”‹‡ ’‡”ƒ–‹‘• ƒ 50 miles northeast of Elko ƒ North America’s largest Arturo Goldstrike Elko gold mining operation N E V A D A Reno Carson City ƒ 40 Moz produced to date ƒ 1,700 jobs Las Vegas ƒ New projects at Arturo and Meikle Expansion Meikle UG Roaster 2016 Reserves Proven 6.1 Moz1 Betze-Po

  17. Slide 17: Underground potential additions

    ‘Ž†•–”‹‡ Ȃ —–—”‡‘ˆ–Š‡†‡”‰”‘—† A ƒ Underground potential additions in color – East Banshee / Meikle Contact / Barrel Dike / West Banshee / Griffin 3880 / Extension / Ren ƒ Open pit potential additions – Arturo & Other near mine opportunities Long Section A – A1 Meikle Underground BetzeͲPostOpenPit

  18. Slide 18: Evolving ore types dictate changing processes

    ‘Ž†•–”‹‡Ȃ Š‡”‘ ‡••‹‰ŠƒŽŽ‡‰‡ ƒ Evolving ore types dictate Annual Gold Production (by process) changing processes – Oxide heap leach and milling – Autoclaving for single refractory – Roasting for double refractory – TCM circuit for lower grade double refractory ore CURRENT ƒ Currently processing TC

  19. Slide 19: Additional Information

    ADDITIONALINFORMATION Barrick Nevada Investor Tour | 35 ƒ””‹ ‡˜ƒ†ƒ‡•‡”˜‡•Ƭ‡•‘—” ‡•ͳ Tonnes Grade Contained (as of Dec. 31/16) (000s) (g/t) (000s oz) P&P Reserves 221,687 2.57 18,297 Proven Reserves 73,665 2.90 6,875 Probable Reserves 148,022 2.40 11,422 Measured Resources 4,512 4.36 632 Indicated R

  20. Slide 20: Reserves by Open Pit, Underground and Stockpiles

    ƒ””‹ ‡˜ƒ†ƒ‡•‡”˜‡’Ž‹–ͳ PROVEN RESERVES PROBABLE RESERVES PROVEN AND PROBABLE RESERVES Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained (as of Dec. 31/16) (000s) (g/t) (000s oz) (000s) (g/t) (000s oz) (000s) (g/t) (000s oz) Open Pit 11,668 1.75 655 133,448 1.54 6,610 145,116 1.56

  21. Slide 21: Barrick Nevada Investor Tour

    ‘Ž†•–”‹‡ Ȃ ††‹–‹‘•–‘‹” —‹–™‹–Š Barrick Nevada Investor Tour | 39 ‘Ž†•–”‹‡ Ȃ ‡ˆ‹‹‰”‘ ‡•• Barrick Nevada Investor Tour | 40

  22. Slide 22: TCM circuit construction completed January 2015

    ‘Ž†•–”‹‡ Ȃ ƒ–‡””‡ƒ–‡–‹” —‹– Barrick Nevada Investor Tour | 41 ‘Ž†•–”‹‡ Ȃ ’†ƒ–‡ ƒ Construction completed January 2015 at capital cost $610 million ƒ Surpassed design production targets ThiosulphatePlant in Q2 2017 AUTOCLAVES – Currently processing acid ore, available GoldElution through Q2 2019 –

  23. Slide 23: Technology Refinement

    ‘Ž†•–”‹‡ Ȃ ‡”ˆ‘”ƒ ‡ Mill Throughput TCM Recovery Rate (tons per operating hour) (percent) 620 70.8 68.2 67.6 67.8 66.8 593 66.1 12 Month Rolling Avg. 63.5 576 571 566 566 565 562 60.6 558 59.7 554 546 58.0 54.3 500 50 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar May Jun Jul Aug Sep Oct Nov Dec Jan

  24. Slide 24: Cyanide free processing provides optionality

    ‘Ž†•–”‹‡ Ȃ ƒ”‡••‹‰‘‰‡”‡”ƒŽ—‡ ƒ Cyanide free processing provides optionality to Barrick in jurisdictions where this is required ƒ Allows Barrick to competitively explore for and exploit complex orebodies ƒ Patented technology protects intellectual property and provides future revenue stream if l

  25. Slide 25: Fourmile Significant Intercepts

    APPENDIXB– ‹‡–ƒ–‹•–‹ • Barrick Nevada Investor Tour | 47 APPENDIX B BarrickNevadaȂ ‹‡–ƒ–‹•–‹ • Tonnes Barrick Nevada Barrick Nevada Barrick Nevada Mined Total Goldstrike Cortez (000s) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Total 192,753 223,661 233,556 67,834 72,304 81,410 124,919 151,357 15

  26. Slide 26: Appendix B – Mine Statistics

    APPENDIX B BarrickNevadaȂ ‹‡–ƒ–‹•–‹ • Average Barrick Nevada Barrick Nevada Barrick Nevada Mined Grade Total Goldstrike Cortez (grams/tonne) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Open Pit Mined 1.74 1.87 1.43 5.74 4.17 4.67 1.30 1.06 0.62 Underground 11.39 13.40 13.02 9.85 9.58 8.84 14.48 21

  27. Slide 27: Barrick Nevada – Mine Statistics

    APPENDIX B BarrickNevadaȂ ‹‡–ƒ–‹•–‹ • Cost per Tonnes Processed Barrick Nevada ($/tonnes) 2016 2015 2014 Oxide Mill 12 13 12 Roasters 24 25 26 Autoclave 60 62 92 Heap Leach 0.97 1.17 1.40 Barrick Nevada Investor Tour | 51 APPENDIX B BarrickNevadaȂ ‹‡–ƒ–‹•–‹ • Recovery Rate Barrick Nevada (%) 2016

  28. Slide 28: Barrick Nevada – Mine Statistics

    APPENDIX B BarrickNevadaȂ ‹‡–ƒ–‹•–‹ • Production Barrick Nevada (k ounces) 2016 2015 2014 Total 2,155 2,052 1,804 Oxide Mill 569 530 468 Roasters 1,115 1,177 963 Autoclave 242 204 148 Heap Leach 229 141 225 Barrick Nevada Investor Tour | 53 APPENDIX B BarrickNevadaȂ ‹‡–ƒ–‹•–‹ • Production Costs Ba

  29. Slide 29: Capital Expenditures and Qualified Persons

    APPENDIX B BarrickNevadaȂ ‹‡–ƒ–‹•–‹ • Capital Expenditures Barrick Nevada ($ millions) 2016 2015 2014 Minesite Sustaining Capex 217 211 416 Project Capex 111 145 331 Total Capital Expenditures 328 356 747 Barrick Nevada Investor Tour | 55 ‡ Š‹ ƒŽ ˆ‘”ƒ–‹‘ The following qualified persons, as that

  30. Slide 30: Appendix C – Reconciliation of Gold Cost of Sales

    Appendix C – Reconciliation of Gold Cost of Sales to Cash costs, All-in sustaining costs and All-in costs, including on a per ounce basis "Cash costs" per ounce and "All-in sustaining costs" (also referred to as “AISC”) per ounce are non-GAAP financial performance measures. “Cash costs” start with o

  31. Slide 31: Notes to reconciliation

    1 By-product credits Revenues include the sale of by-products for our gold mines. 2 Non-recurring items Non-recurring items in 2015 consist of $12 million of costs arising from a change in our supplies inventory obsolescence provision. These costs are not indicative of our cost of production and hav

  32. Slide 32: Digital Enterprise Transformation Strategy

    BarrickNevada DigitalEnterprise Transformation Strategy Investor Tour | June 20-21, 2017

  33. Slide 33: Digital Enterprise Transformation Strategy

    Digital Enterprise Transformation Strategy Investors Visit 20 June 2017 Substantial effort has been made Our Strategic Intent is to in 2016 and Q1 2017 to initiate transform Barrick into a digital Barrick transformation Digital Enterprise ƒ Multiple quick-wins achieved in Cortez test-site, under-tim

  34. Slide 34: Organization

    Barrick is now moving from Digital Projects to Setting up the Digital Organization Digital Maturity for Companies 5 4 Digital enterprise 3 Established digital org 2 ƒ Digital is dominant Set up digital org ƒ Digital business corporate element 1 Digital projects ƒ Derive vision and contributes ƒ Full

  35. Slide 35: User-Centric Design Thinking ensures front-line input & buy-in

    User-Centric Design Thinking ensures front-line input & buy-in Design Thinking is a user-centered problem solving approach. It starts with an ideal or vision of what we need, and we work backwards to build a solution that gets us there. We balance user needs with business goals. 5 By spending time w

  36. Slide 36: Insights come from walkthroughs of major processes like Maintenance

    Insights come from walkthroughs of major processes like Maintenance, seeing what workers experience every day 7 Solutions are created using an Agile approach: focusing on the “minimal requirements” onto which new features are progressively built Traditional “waterfall” project delivery Rapid digitiz

  37. Slide 37: Agile is run on 2 week sprints

    Agile is run on 2 week sprints ensuring constant prioritization of features and control of spend PRODUCT OWNER SCRUM MASTER DEVELOPMENT TEAM Product Backlog Sprint Backlog Sprint Retrospective ƒ User-focused prioritized ƒ Features for a Sprint ƒ Done after each sprint product features ƒ Estimated by

  38. Slide 38: Analytics and Unified Operations Center

    BarrickNevada Analyticsand Unified Operations Center Investor Tour | June 20-21, 2017

  39. Slide 39: Decision-Making. Operations Center

    BELOW ARE A FEW EXAMPLES OF HOW AU OPS WILL ENHANCE DECISION-MAKING. • Health and safety alerts will pop up on screen to indicate the seriousness of a situation and actions required to resolve it. It will display the impact to cost and WHAT IS THE AU OPS CENTER? time and produce an action log for us

  40. Slide 40: How AU Ops Works

    HOW AU OPS WORKS To learn more about Barrick’s digital transformation, please scan the QR Code to visit our website.

  41. Slide 41: Cortez Hills Underground: Impact Drivers

    BarrickNevada CortezHillsUnderground: ImpactDrivers Investor Tour | June 20-21, 2017

  42. Slide 42: Impact Drivers

    IMPACT DRIVERS Achieving impact through SIC at Cortez UG involves two main im- provements composed of several drivers Beginning of shift Reduced time locating equipment a Decrease length of lineout meeting Minimize time travelled from admin to UG Effective shift b During shift Shorten of operator’s

  43. Slide 43: Production Metrics

    PRODUCTION METRICS UG – Mining Type UG – Backfill (CRF) 20,000 ƌŝŌΘ&ŝůů&ĞĞƚ 600 18,000 500 400 16,000 300 200 14,000 Sum of DrillFillFeet 100 ^ƵŵŽĨƌŝŌ&ŝůůdĂƌŐĞƚ 12,000 0 4 per. Mov. Avg. (Sum of DrillFillFeet) 3/24/2017 3/31/2017 4/7/2017 4/14/2017 4/21/2017 4/28/2017 5/5/2017 5/12/2017 5/19/2017 5/

  44. Slide 44: Production Metrics

    PRODUCTION METRICS UG – Loader/Truck - Availability UG – Drill/Bolter – Utilization Loader Jumbo 100 100 90 80 95 70 йhƟůŝnjĂƟŽŶ 60 90 % Available 50 40 85 30 20 ǀĞƌĂŐĞŽĨ:ƵŵďŽhƟů 10 ǀĞƌĂŐĞŽĨƌŝůůhƟůdĂƌŐĞƚ 80 Average of LoaderAvail 0 3/24/2017 3/31/2017 4/7/2017 4/14/2017 4/21/2017 4/28/2017 5/5/2017 5

  45. Slide 45: What is SIC?

    WHAT IS SIC? What is SIC? Short Interval Control (SIC) is ensuring compliance to a detailed schedule of tasks and results. This is done by supervising the production in real-time and adjusting schedules as events occur during the shift. Why are we doing this? This system is just a tool to help safet

  46. Slide 46: Wait Time

    WAIT TIME Average Daily Wait Time1 for Haul truck- 2017 Number of Wait time for Haul trucks1 Min # - Count Other At Batchplant 0:23:02 2,136 Avg. wait time: 10:46 Avg wait at batch plant is 9:26 0:20:10 1,912 Avg. wait at loader 11:01 0:17:17 0:14:24 922 1,649 0:11:31 1,035 0:08:38 478 0:05:46 515 1

  47. Slide 47: Shift Extender

    SHIFT EXTENDER Daily production - 3 Day Rolling Avg. Avg. Shift Length for Haul Trucks Tons per day Time 10:48:00 Avg. Shift length: 10:40:48 10:22 10:33:36 10:26:24 10:19:12 10:12:00 10:04:48 - 9:57:36 17 17 17 17 7 7 7 7 7 7 17 17 12 7 15 7 18 7 21 7 24 7 27 7 30 7 7 17 17 12 7 15 7 7 01 01 01 01

  48. Slide 48: Operator Excellence: Bolts by Crew

    OPERATOR EXCELLENCE: BOLTS BY CREW Bolts1 installed by crew per month in 2017 Crew A Crew B Crew C Crew D Number of Bolts 7,280 6,065 5,983 5,490 5,179 5,069 4,876 4,336 4,475 4,047 3,994 3,954 3,384 3,383 2,673 2,468 Feb Mar Apr May 1 8' bolts only. Excluding 12' & 16' bolts

  49. Slide 49: Operator Excellence: Jumbo

    OPERATOR EXCELLENCE: JUMBO Total Feet drilled by crew per month in 2017 Crew A Crew B Crew C Crew D Feet 4,662 4,844 4,614 4,391 4,423 4,063 4,059 3,608 3,643 3,556 3,555 3,354 3,400 2,336 2,328 1,981 Feb Mar Apr May

  50. Slide 50: Operator Excellence: Mucker

    OPERATOR EXCELLENCE: MUCKER Buckets per hour Buckets per operating hours By operator By crew 20 # of buckets 80 # of buckets 75 18 70 16 70 62 65 60 15 14 60 54 56 12 12 50 50 10 10 10 8 40 30 5 20 10 0 0 Miner 1 Miner 2 Miner 3 Miner 4 Crew A Crew B Crew C Crew D List all operators

  51. Slide 51: Operator Excellence: Trucks

    OPERATOR EXCELLENCE: TRUCKS Sample Charts for Mucker Loads per hour Loads per operating hours By operator By crew 20 # of loads 18 80 # of loads 70 75 16 60 62 65 15 14 60 50 54 56 12 12 10 10 10 8 40 5 20 0 0 Miner 1 Miner 2 Miner 3 Miner 4 Crew A Crew B Crew C Crew D Ore to Surface Waste to Surfac

  52. Slide 52: Operator Excellence: Bolts by Operator

    OPERATOR EXCELLENCE: BOLTS BY OPERATOR Bolts1 installed by operator in Feb – May 2017 Number of Bolts2 5,503 5,505 5,004 4,730 4,232 4,312 3,883 3,270 3,510 3,240 3,055 3,057 3,151 2,938 2,518 2,237 2,113 1,877 1,861 1,608 1,181 364 656 963 941 746 586 726 387 324 323 359 230 387 300 289 Miner 10 Mi

  53. Slide 53: Operator Excellence: Loader

    OPERATOR EXCELLENCE: LOADER Total bucket by crew per month in 2017 Crew A Crew B Crew C Crew D # of buckets 1,589 1,386 1,350 1,053 935 914 758 796 551 584 482 460 248 264 107 0 Feb Mar Apr May

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