Barrick Mining Corporation · TSX:ABX

Barrick Mining — Q4 2015 Earnings Presentation

17 slides from Barrick Mining's earnings presentation, Feb 18, 2016

  1. Slide 1: Fourth Quarter 2015 Results / 2016 Outlook

    FourthQuarter2015Results/2016Outlook Partnership.Performance.Value. February 18, 2016 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

  2. Slide 2: Streamlined the Business

    ‘—”–Š—ƒ”–‡”ʹͲͳͷ‡•—Ž–• Kelvin Dushnisky Shaun Usmar Richard Williams Basie Maree President Chief Financial Officer Chief Operating Officer Chief Technical Officer š‡ —–‡†‘ʹͲͳͷ”‹‘”‹–‹‡• $ Streamlined Strengthened Maximized Focused on the the Balance Free Cash Best Assets Business Sheet Flow and Regio

  3. Slide 3: Sustainable, profitable production base

    ‘ƒŽ•ˆ‘”‘‰‡”— ‡•• Sustainable, profitableproductionbase + Lower AISC to under$700per ounce1 + Reduce total debt to lessthan$5B + Increase the optionality within our portfolio = Lean,sustainablebusinessfocusedon freecashflowandmargingrowth 1. See final slide #1. ʹͲͳ͸”‹‘”‹–‹‡• Free Generate free cash

  4. Slide 4: Portfolio performance reflects increased focus on expanding cash margins

    Š”‡‡‡ƒ””‘†— –‹‘ƒ† —‹†ƒ ‡ͳ Production (Moz) AISC ($/oz) $864 $831 $775-$825 $740-$790 $725-$775 6.25 6.12 5.0-5.5 5.0-5.5 4.6-5.1 2014 2015 2016E 2017E 2018E 1. See final slides #8 and #9. ‘—”–Š—ƒ”–‡”ƒ†ʹͲͳͷ ‹‰ŠŽ‹‰Š–• ƒ Portfolio performance reflects Q4 2015 increased focus on expanding Gold Prod.

  5. Slide 5: 2015 impairment charges

    ʹͲͳͷ ’ƒ‹”‡–Šƒ”‰‡•ͳ ($ billions) ƒ Price assumptions used for Goodwill impairment testing adjusted to Goldstrike 0.73 be more consistent with Zaldívar 0.43 assumptions used for: Pueblo Viejo 0.41 Cortez 0.35 – mine planning Lagunas Norte 0.25 – calculating reserves Total goodwill 2.17 – assessment

  6. Slide 6: Eliminated bow wave of future capital

    ƒƒ‰‹‰‘–”‘ŽŽƒ„Ž‡‘•–• ($M) Uncontrollable Controllable Costs Costs 2014 Gold and Cash cost Income Overhead Sales volume Hedges3 Depreciation4 Other5 2015 adjusted copper per tonne tax costs2 & grade adjusted net realized processed1 net earnings prices earnings 793 +67 +379 Grade 165 Vol 51 (216) +5

  7. Slide 7: Achieved $3.1 B of total debt reduction in 2015

    — ‡••ˆ—Ž‹ƒ„‹Ž‹–›ƒƒ‰‡‡– ƒ Achieved $3.1 B of total Total debt ($B) debt reduction in 2015 13.1 0.5 2016 0.5 ~3.1 ƒ Extended maturity on majority Notes Other Repayments of undrawn credit facility to 2021 ~2.1 10.0 ƒ Amended financial covenant Debt Tenders to better reflect ongoing deleveraging acti

  8. Slide 8: 2016 financial outlook

    ʹͲͳ͸ ‹ƒ ‹ƒŽ—–Ž‘‘ͳ ($M) 2016 2015 2014 Minesite sustaining 1,200-1,400 1,331 1,584 Minesite expansion 100-150 120 362 2 Projects 50-100 61 234 Capex3 1,350-1,650 1,512 2,180 4 Tax rate 50-55% 53% 42% Finance costs 690-730 739 796 Exploration and evaluation 125-155 163 184 Project expenses 100-120

  9. Slide 9: Higher quality production of 5.0-5.5 M oz

    ‘Ž†’‡”ƒ–‹‘•ΫʹͲͳ͸—–Ž‘‘ͳ ƒ Higher quality production of 5.0-5.5 M oz from a more Americas-focused portfolio ƒ Lower cash costs of $550-$590/oz reflect sale of higher cost ounces and Best-in-Class initiatives ƒ Reduced AISC of $775-$825/oz from lower sustaining and development expenditures, G&A and e

  10. Slide 10: 2015 production in line at better than expected costs

    ‘Ž†•–”‹‡ ƒ 2015 production in line at South Arturo better than expected costs ƒ 2016 guidance1: 0.98-1.08 M oz at AISC of $780-$850/oz – higher AISC driven by capital for tailings expansion and water management ƒ Initial production from South Arturo anticipated in H2 2016 1. See final slide #8. —‡„

  11. Slide 11: Low 2015 AISC benefited from improved cost savings

    ƒ‰—ƒ•‘”–‡ ƒ Low 2015 AISC benefited Selective Mining from improved capital, fuel and labor cost savings ƒ 2016 guidance1: 0.41-0.45 M oz at AISC of $570-$640/oz – reduced production reflects transition to lower recovery sulfide ore – higher AISC includes Phase 6 leach pad expansion to be completed

  12. Slide 12: Transition to mechanized top cuts in Q4 2015

    —”“—‘‹•‡‹†‰‡ȋ͹ͷΨȌ ƒ Transition to mechanized top Rock Bolter cuts in Q4 2015 improves mining flexibility ƒ 2016 operating guidance1: 0.20-0.22 M oz at AISC of $770-$850/oz – increasing mining rates with better productivity and ventilation – higher AISC from sustaining capex for water treatment and e

  13. Slide 13: Maintain long term profitable production base

    ‹‡”ƒŽ‡•‘—” ‡ƒƒ‰‡‡– ƒ Maintain long term, profitable production Alturas base through focused mineral resource management: – 2016 exploration budget1: ¾ $125-$155 M balanced between Minex and Globalex – Project execution: ¾ ~$50 M to advance project studies this year – Additional 2016 focus: ¾ eva

  14. Slide 14: 2015 reserves and resource change

    ʹͲͳͷ ‘Ž†Ƭ ‡•‘—” ‡•ͳ (M oz) Drilling 94.3 and Cost Reduction 85.3 8.5 85.0 9.0 79.1 Asset Sales 5.9 8.8 Change in To Gold Price Reserves to $1,300 from $1,400 40.0 2014 YE 2014 YE 2015 2015 Year End Equity Pre-Price Year End Adjusted Change 1. See final slide #5. ”‘Œ‡ –‹’‡Ž‹‡Ȃ –”‘‰”‰ƒ‹ ”‘™–Š’–‹‘•

  15. Slide 15: An organisation with a partnership culture and owner managers

    ƒ• —ƒǦƒƒȂ Šƒ ‹‰ —–—”‡’–‹‘ƒŽ‹–› ƒ Temporary suspension plan – approved and largely implemented in 2015 ƒ Expected 2016 costs of $80-$100 M primarily for: – water management – tunnel closure ƒ 2016 focus will be on developing an optimized completion plan with improved economics —” ˜‡•–‡–”‘’‘•‹

  16. Slide 16: 2016 Operating Guidance

    ’’‡†‹š ƒ 2016 Operating Guidance ƒ 2016 Assumptions and Sensitivities ʹͲͳ͸’‡”ƒ–‹‰ —‹†ƒ ‡ Gold Production AISC (000's of ounces) ($ per ounce) Cortez 900-1,000 640-710 Goldstrike 975-1,075 780-850 Pueblo Viejo (60%) 600-650 570-620 Lagunas Norte 410-450 570-640 Veladero 630-690 830-900 Sub Total 3

  17. Slide 17: 2016 Assumptions and Sensitivities

    ʹͲͳ͸••—’–‹‘•ƒ†‡•‹–‹˜‹–‹‡• 2016 Impact Guidance Hypothetical on AISC1 EBITDA1 Assumption Change ($/oz) ($M) Gold revenue, net of royalties $1,000/oz +/-$100/oz n/a 536 Copper revenue, net of royalties $2.00/lb +/-$0.50/lb n/a 178 Gold all-in sustaining costs Royalties and prod. taxes $1,000/oz +$

Barrick Mining — Q4 2015 Earnings Presentation on 6ix