Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Investor Presentation (February 2002)
26 slides from Barrick Mining's investor presentation, Feb 15, 2002
Slide 1: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements included herein, including those regarding, production, realized gold prices and costs constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Such forward looking statements invol
Slide 2: 2
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Slide 3: 1.24 oz Gold per ton
b> 1.24 oz Gold per ton b 55 oz Silver per ton > Increase production 14% » Cash costs $51 per oz > New ramp extension completed in 2002 > Begin drilling in second-half of 2002 > Expanded district exploration program
Slide 4: Production — 304,000 oz
» Production — 304,000 oz > Cash costs $197 per oz » 450,000 attributable new reserve ounces » Production — 362,500 oz b> Cash costs — $198 per oz » Exploration potential
Slide 5: Production — 902,000 oz
» Production — 902,000 oz » Cash costs — $186 per oz > Production — 367,000 oz b> Cash costs — $205 per oz > Production — 572,000 oz b> Cash costs — $160 per oz
Slide 6: Plutonic, Tanami, Cowal
Plutonic Tanami Cowal » Reserves — 2.8 million oz » Production— 200,000 oz per year
Slide 7: April 2001 start-up
> April 2001 start-up > Increased reserves to 12 million oz b> 86% recovery in December » 89% recovery in second-half 2002
Slide 8: Production — 362,000 oz
_| > Production — 362,000 oz ] & Cash costs — $173 per oz > Tulawaka feasibility study second-half 2002 b> Kabanga (Nickel) > 50% increase in 2001 > 600,000 tonnes > Goal: 1 million tonnes
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Slide 10: Reserves increased to 8.4 million oz
b> Reserves increased to 8.4 million oz > Valley-fill heap leach b> Reserve expansion » Continue metallurgical testing > Capable of adding significantly to production, earnings, and cash flow 10
Slide 11: New geophysical survey
> New geophysical survey > Latest technology > New targets at Banshee, > Lowered reserves to 4 million oz > Search radius reduced > Inability to mine smaller, more difficult areas 11
Slide 12: 2001 exploration program
b> 2001 exploration program > New deep targets > Favourable drill results north of Meikle and Banshee 12
Slide 13: Fresh look at constraints to production
> Fresh look at constraints to production > Increased mill throughput by 10% > Roaster throughput up 10% > No new capital b> 31,500 tons per day 13
Slide 14: Mining costs down
» Mining costs down b Processing costs down » Admin. costs down b> Overall unit costs down 26% > Opportunities to create value > Eliminating bottlenecks > Improving recoveries > Finding merger synergies > Cutting costs » Early success at Meikle, Eskay Creek, and Yilgarn 14
Slide 15: Direct operational reporting
> Direct operational reporting > Best of Barrick and Homestake > Strongest operating team BARRICK BUILT TO LAST a ns 8 8 ® BARRICK BUILT TO LAST 15
Slide 16: Strong balance sheet
> Large cash balance > Low net debt > Low cost producer > Strong cash flows > Large free cash flows b> Lowest capex since 1987 Strong balance sheet BARRICK BUILT TO LAST ms ep ep 8 © 16
Slide 17: Earnings before merger charges — $245 million
> Earnings before merger charges —$245 million ~ > Earnings — $96 million > Operating cash flow — $721 million > Capital expenditures — $607 million & Cash position — $733 million BARRICK BUILT TOLAST se ease > Improves comparability » Economically neutral > Higher depreciation > Higher exploration
Slide 18: No off-balance sheet liability financing
> No off-balance sheet liability financing > Premium Gold Sales Program > Future reclamation liability > Gold reserves BARRICK BUILT TOLAST se ease b> “AA-" rated — $5.5 billion asset > Lock in high long-term USS interest rates b> 2/3' borrowing costs locked in P Sell call options BARRICK BUILT TOLA
Slide 19: Foreign exchange hedges on Cdn$ and Aus$
> Foreign exchange hedges on Cdn$ and Aus$ » By-product hedging (Silver) > Buluyanhulu financing locked in at 8% BARRICK BUILT TOLAST se ease b> No leveraged options > No hidden financing structures b> No margin calls BARRICK BUILT TOLAST se ease 19
Slide 20: Experience of closing mines
> Experience of closing mines > Improved operating procedures > Future obligations reviewed annually BARRICK BUILT TOLAST se ease > Large long-life, low-cost reserves > Offset forward sales obligations > Four times larger than forward sales BARRICK BUILT TOLAST se ease 20
Slide 21: 18.2 million ounce position
> 18.2 million ounce position » Adjusting delivery schedule > $500 million: & $180 million: > $260 million: & $280 million: b> $125 million: > $330 million: b> $438 million: BARRICK GUILT TO LAST SBaspe 8s a # Acquisitions Meikle Pierina Bulyanhulu Rodeo Goldstrike Roaster Dividends BARRICK BUILT TO
Slide 22: Ability to acquire, explore, develop and produce more gold
> Ability to: acquire, explore, develop, and produce more gold BARRICK BUILT TOLAST se ease > Substantial free cash flow over next five years — regardless of gold price P Deliver only 50% of production against book per year b> $365 per oz in 2002 BARRICK BUILT TOLAST se ease 22
Slide 23: Participation in higher gold prices
> Participation in higher gold prices > Predictable, strong cash flows > $25 gold price increase = $70 million or 13 cents per share BARRICK BUILT TOLAST se ease b> Cutting costs > Doing more with less BARRICK BUILT TOLAST se ease 23
Slide 24: Higher severance costs = more streamlined
» Higher severance costs = more streamlined > Broader operating review = greater synergies > Higher one-time costs = larger on-going savings BARRICK BUILT TO LAST Bees. > $27 million in administration > $13 million in exploration > $20 million in Canadian and U.S. taxes BARRICK BUILT TO LAST Bees. 2
Slide 25: Production — 5.7 million oz
> Production — 5.7 million oz & Sell 50% at $365 per oz, and 50% at spot » Cash costs — $167 per oz > Total production costs — $254 per oz BARRICK GUILT TO LAST SBaspe 8s a # & Administration costs — $55 million » down from $86 million > Exploration expense — $55 million > Maintain tax rate below 10
Slide 26: Barrick Built to Last
BARRICK BUILT TO-LAST 26