Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Goldman Sachs Cyclicals Conference 2004
18 slides from Barrick Mining's conference presentation, May 20, 2004
Slide 1: Building Mines, Building Value
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Building Mines, Building Value Gold Price Performance 425 “Sustainable gold rally” 400 375 350 325 300 275 2002 2003 2004 1
Slide 2: Bullish Outlook for Gold
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Bullish Outlook for Gold U.S. Dollar weakness Global reflation A move towards diversifying from financial assets into hard assets Limited number of new gold mines Discipline/transparency in future Central Bank sales
Slide 3: A Long Term Structure Problem
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 A Long Term Structure Problem GOVERNMENT NET FINANCIAL LIABILITIES Percent of nominal GDP Source: OECD 350 The 2030 projections include 2002 300 pension liabilities and health care costs 2030 250 200 150 100 50 0 United Japan
Slide 4: Bullish Outlook for Gold – cont.
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Bullish Outlook for Gold – cont. Low and negative real interest rates Continued global political unrest Growing global economy and population New investment vehicles make access easier Continued dehedging Central B
Slide 5: Silver Exposure / Asset Base – Mines and Projects
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Silver Exposure Tremendous leverage to silver prices Will produce about 17 M oz of silver in 2004 835 million ounces of contained silver in gold reserves One of the world’s largest silver producers in future By-produ
Slide 6: North America
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 NORTH AMERICA Eskay Creek Geopolitical Hemlo Holt-McDermott Diversity Meikle Betze-Post 2004E 2003 Round Mt. PRODUCTION RESERVES 28% 60% 44% 15% SOUTH AMERICA EAST AFRICA 13% 20% 13% 7% Tulawaka Bulyanhulu AUSTRALIA Alto Chica
Slide 7: Resources to Execute Strategy
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Resources to Execute Strategy Right People in the Right Places Strengthened management team New organizational structure – consolidating life-of-mine accountability with COO – established regional economic business units
Slide 8: Building Mines – Veladero, Argentina
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Building Mines – Veladero, Argentina POTENTIAL Gold reserves: 11.1 M oz Production E: 525–550,000/yr Average cash cost est: $155–165/oz (subject to exchange rate fluctuations and applicable export duties) PLAN 2 open p
Slide 9: Veladero Project – Camp and Administration
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Veladero Project – Camp and Administration Building Mines Building Value Veladero Project – Truck Shop Building Mines Building Value 9
Slide 10: Veladero / Pascua-Lama
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Veladero Project – Fleet Assembled, Stripping Commenced Building Mines Building Value Waste Veladero / Pascua-Lama Pascua-Lama Pit Waste Pit CHILE ARGENTINA Waste Filo Federico Pit Amable Pit Veladero Waste Heap Leach 0 5 10 k
Slide 11: Building Mines – Lagunas Norte, Peru
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Building Mines – Lagunas Norte, Peru Alto Chicama District POTENTIAL Gold reserves: 7.2 M oz Production est: 535–560,000/yr Average cash cost est: $135–145/oz PLAN Open pit - crushing/leaching Capital costs est: $340
Slide 12: Building Mines – Cowal, Australia
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Building Mines – Cowal, Australia POTENTIAL Gold reserves: 2.5 M oz Gold resources: 1.6 M oz Production est: 220–230,000/yr Average cash cost est: $230–245/oz PLAN Open pit - CIL Capital costs est: $270M Constructi
Slide 13: Reserve Development and Replacement
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Reserve Development and Replacement Virtually replaced 2003 production Mined below average reserve grade in 2003 Focusing on replacing and growing in 2004 – Create long-term value – Provide flexibility and enhance future
Slide 14: Beyond 2007 – Pascua-Lama
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Beyond 2007 – Pascua-Lama Chile/Argentina 6 kilometers from Veladero – 17 M oz gold reserve 584 M oz contained silver within 17M oz gold reserve Open pit with oxide and sulphide processing facilities Completion of the
Slide 15: Exploration Investment
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Exploration Investment Barrick’s exploration spending has been consistent US$ millions 79 69 69 67 66 65 59 400 56 350 Spot Gold Price 300 250 97 98 99 00 01 02 03 04E Robust and Balanced Pipeline STAGE BUDGET Dee, Rossi, Re
Slide 16: Beyond 2007 – Opportunistic Acquisitions
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Beyond 2007 – Opportunistic Acquisitions Focused on value-creating asset deals: Strategic partnerships – Highland Gold – Russia – QGX Limited – Mongolia – Falconbridge – Kabanga, Tanzania Leverage development competencies
Slide 17: Industry Dynamics – Low Growth Rates
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 Industry Dynamics – Low Growth Rates Growth Rate at the 4 Other Majors: ’04 – ’07F millions of ounces 25 2% CAGR PDG 20 GF 15 ANG 10 5 NEM 0 04F 05F 06F 07F Source: Average of Research and company estimates Growth Profile – Ta
Slide 18: The Case for Barrick
BARRICK GOLD CORPORATION Goldman Sachs Conference New York – May 20, 2004 The Case for Barrick Construction of all four new mines has begun Unrivaled growth and projected lowest cash costs among top five producers through 2007 Focus on continued growth beyond 2007 Strong management team and
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