Barrick Mining Corporation · TSX:ABX
Barrick Mining — Bank of America Merrill Lynch 19th Annual Canada Mining Conference 2013
11 slides from Barrick Mining's conference presentation, Sep 12, 2013
Slide 1: Bank of America Merrill Lynch 19th Annual Canada Mining Conference
Bank of America Merrill Lynch 19th Annual Canada Mining Conference Toronto - September 12, 2013 1 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 futu
Slide 2: Barrick at a Glance
Barrick at a Glance 9 5 core long life mines in the Americas High quality to generate ~60% of production at AISCe of assett base b ~$700/oz in 2013 9 High grade reserves Lowest cost 9 Reduced 2013 AISC guidance by $100/oz(1) senior 9 75% of 2013 production at AISCe producer of <$800/oz(1) 9 Focus on
Slide 3: Lowest Cost Senior Producer
Lowest Cost Senior Producer 2013e All-In Sustaining Costs (US$/ounce) Industry Average(1) Senior Peers Reduced 2013 1,200-1,300 Weighted Avg(2) AISC guidance by 1,150-1,250 $100/oz Barrick Adopted World 900-975 Gold Council’s “all all-in in” cost measure (1) Average of sell-side estimates. See f
Slide 4: Five Core Mines
Five Core Mines 2013e: 7.0-7.4 Moz of gold at AISC of $900-$975/oz 1.50 Cortez (Nevada) 1.25 Production ((Moz) ~60% 60% 1.00 Goldstrike (Nevada) at AISC of 0 75 0.75 Lagunas Norte ~$700/oz $ / 3 Forecast P (Peru) Pueblo Viejo 5 mines (Dom. Rep.) 0.50 Veladero 2013 (Argentina) 0.25 0 0 500 1,000 1,50
Slide 5: Pascua-Lama
Pascua-Lama Expected to generate significant cash flow Low operating costs – first quartile of industry cost curve Gold production of 800-850 Koz and 35 Moz of silver(1) One of the world’s largest gold and silver resources 25 year mine life Track record of increasing value at projects (1
Slide 6: Disciplined Capital Allocation Framework
Disciplined Capital Allocation Framework Focuses on maximizing risk-adjusted rates of return and free cash flow Includes sharp focus on cost control Allowed us to react quickly in a lower gold price environment Returns will drive production; production will not drive returns 11 Barrick is Well
Slide 7: Barrick is Well Positioned
Barrick is Well Positioned (US$/oz) Gold Price Decline 1,800 What We are Doing Now In a lower metal price environment 1,700 Cost control initiatives í Capital p and cost reductions 1,600 í New operating model Maximizing cash flow at every 1 500 1,500 mine (optimize first) New life-of-mine plan
Slide 8: Improvements to 2013 Guidance
Improvements to 2013 Guidance Current Original Gold Cost of sales ($M) 6,100-6,500 6,700-7,000 AISC ($/oz)(1) 900-975 1,000-1,100 Adjusted operating costs($/oz)(1) 575-615 610-660 Copper Cost of sales ($M) 1,100-1,300 1,200-1,400 C1 cash costs ($/lb)(1) 1.95-2.15 2.10-2.30 C3 fully allocated costs (
Slide 9: Plans to Maximize Cash Flow
Plans to Maximize Cash Flow Changes to Lumwana’s mine plan including: – lower waste stripping pp g from re-sequencing q g – significant labor reductions (major mining contractor terminated) A number of business improvement initiatives continue to enhance h the th productivity d ti it off the th
Slide 10: Looking Forward
Looking Forward ~70% of 2013e production in the Americas Five core core, low cost mines generating majority of production and cash flow No plans to build any new mines Continued sharp focus on cost reduction and g cash flow and risk-adjusted maximizing j returns Leaner, more agile and prof
Slide 11: Footnotes
Footnotes 1. All-in sustaining costs per ounce (“AISC”), adjusted operating costs per ounce, C1 cash costs per pound and C3 fully allocated cash costs per pound are non-GAAP financial performance measures with no standardized definition under IFRS. In prior quarters, Barrick used the term “total cas
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