Slide 1: Fourth Quarter 2011 Results and 2012 Outlook
Fourth Quarter 2011 Results and 2012 Outlook Conference Call / Webcast – February 16, 16 2012 1
Slide 2: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD‐LOOKING INFORMATION Certain information contained in this presentation, including any information as to our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future perfor
Slide 3: Q4 2011 Results
Q4 2011 Results Aaron Regent Jamie Sokalsky Peter Kinver Kelvin Dushnisky Rob Krcmarov President and CEO Executive Vice President Executive Vice President Executive Vice President Senior Vice President and CFO and COO Corporate & Legal Affairs Global Exploration 3
Slide 4: 2011 Highlights
2011 Highlights Gold production and cost targets achieved – 7.68 7 68 Moz gold at total cash costs of $460/oz((1)) or net cash costs of $339/oz(1) – one of the lowest cash costs of any senior gold producer Record earnings and cash flow – adjusted net earnings of $4.7 B(1) ($4.67/share) – adjuste
Slide 5: 2011 Highlights
2011 Highlights Advanced construction at two world-class mines – Pueblo Viejo and Pascua-Lama first production expected in 2012 and 2013 – ~1.5 Moz(1) of low cost production once at full capacity Replaced gold reserves and grew resources Continued success at Red Hill/Goldrush greenfield discov
Slide 6: 2011 Highlights
2011 Highlights Progressed project pipeline – 7 projects: Cerro Casale, Casale Donlin Gold, Gold Kabanga, Kabanga Lumwana expansion,Turquoise Ridge open pit project, Lagunas Norte and Zaldívar sulfides Acquired long-life, producing Lumwana copper mine and Jabal Sayid copper project – significant
Slide 7: Fourth Quarter Highlights
Fourth Quarter Highlights Gold: 1.81 Moz at total cash costs of $505/oz(1) – $382/oz(1) on a net cash cost basis Copper: 143 Mlbs at total cash costs of $1.99/lb(1) Gold G ld cash h margins i off $1,159/oz $1 159/ (1) and d nett cash h margins of $1,282/oz(1) Adjusted Adj t d nett earnings i
Slide 8: Q4 2011 Operating results
Q4 2011 Operating results ounces thousands North America 761 African 1.81 Barrick million 118 ounces 485 446 South America Australia A t li Other 4 Pacific Total cash costs $505/oz(1) Net cash costs $382/oz(1) (1) See final slide #1 8
Slide 9: Pueblo Viejo In Construction
Pueblo Viejo IN CONSTRUCTION First production anticipated in mid-2012 – overall construction ~90% 90% complete 625-675 Koz of expected average annual production to Barrick at total cash costs of $300-$350/oz(1) Mine construction capital of $3.6-$3.8 B(2) (100%) or $2.2-$2.3 B (Barrick’s 60% sh
Slide 10: Pueblo Viejo In Construction
Pueblo Viejo IN CONSTRUCTION Oxygen Plant ~13 Mt of ore stockpiled Oxygen plant to undergo pre-commissioning testing in Q Q1 2012 First 2 of 4 autoclaves pre-commissioning in Q2 2012 Transmission line constructed d and d inter- i connect to the grid achieved Autoclave Circuit 10
Slide 11: Pascua-Lama In Construction
Pascua‐Lama IN CONSTRUCTION Initial production expected in mid-2013 Expected gold production of 800-850 Koz/year at negative cash costs of $225-$275/oz(1) at $25/oz silver Expected silver production of ~35 35 Moz/year(2) Previously announced pre-production capital of $4.7-$5.0B(2) (~55% of c
Slide 12: Pascua-Lama In Construction
Pascua‐Lama IN CONSTRUCTION Process Earthworks Earthworks ~95% and ~65% complete in Chile and Argentina ~40% of the concrete poured Merrill Crowe Building g at the processing facilities in Argentina ~15% 15% off the th structural t t l steel t l erected Construction camp occupancy continues
Slide 13: Project Cash Flow Potential
Project Cash Flow Potential Pueblo Viejo EBITDA(1) Pascua-Lama EBITDA(1) US$B – Barrick’s share US$B ~0.80 ~1.65 122% 146% ~0.4 ~0.7 Feb 2008 May 2009 At $926(2) At $1,600(3) At $930(5) At $1,600(3,4) (1) See final slide #1 (2) See final slide #8 (3) See final slide #9 (4) Based on a silver price of
Slide 14: Jabal Sayid In Construction
Jabal Sayid IN CONSTRUCTION Initial production expected in H2 2012 Overall construction ~75% complete Mine construction capital of ~$400 M – ~85% of capital p committed 100-130 Mlbs of expected average annual production at total cash costs of $1.50-$1.70/lb(1) (1) See final slide #1 Crusher
Slide 15: Projects Next Generation
Projects NEXT GENERATION Barrick’s deep project FEASIBILITY/ PERMITTING Cerro Casale (Au/Cu) Chile pipeline provides Donlin Gold (Au) Alaska significant future option p value Kabanga (Ni) Tanzania PRE-FEASIBILITY Lumwana Expansion (Cu) Zambia Turquoise Ridge (Au) Nevada Zaldívar Sulfides (Cu) Chil
Slide 16: Excellent Growth Potential
Excellent Growth Potential Gold Production Silver Production Copper Production (Moz) ~9.0 (Moz) ~50 (Mlbs) ~1,000 Zaldivar Pascua Sulphides -Lama Lumwana E pansion Expansion Pueblo Jabal Sayid 7.7 Net Viejo Lumwana Depletion 451 Zaldivar ~3 6.0 2011 2016E(1) 2011 2016E(1) 2011 2017E(1) (1) See final
Slide 17: History of Gold Reserve Growth
History of Gold Reserve Growth THROUGH ACQUISITION AND EXPLORATION Proven and Probable – millions of ounces of gold 140((1)) 148 Spent $2.5B on exploration TOTAL EXP’N Overall finding cost ~$17/oz 20 20 Moz 1990 DIVESTED 2011 118 110 TOTAL TOTAL MINED ACQ’D (1) See final slide #6 17
Slide 18: History of Reserve/Resource Growth
History of Reserve/Resource Growth Gold reserve/resource ounces added (millions) 0 5 10 15 20 25 30 Goldstrike 56Moz Pascua-Lama Cortez Donlin Gold Pueblo Viejo Veladero Turquoise Ridge Reko Diq Lagunas Norte Bulyanhulu Pierina Bald Mtn Red Hill / Goldrush Ruby Hill ACQUIRED ADDED S Arturo 18
Slide 19: Reserves and Resources
Reserves and Resources(1) Gold Replaced gold Copper M Moz Blb Blbs 37.2 40.2 Inferred reserves 19.9 Inferred 31.6 80.4 80 4 Grew ggold M&I 76.3 61.8 M&I and inferred resources Increased copper 9.4 9.1 15.3 139.8 139.8 139.9 P&P reserves and M&I resources 13.0 12.9 12.7 P&P 61 6.1 65 6.5 09 10
Slide 20: 2012 Exploration Program
2012 Exploration Program(1) North America North America 45% Africa 5% Africa Australia Pacific Africa Copper pp 20% Copper 20% South 20% America South 10% America Australia Mine Project Pacific 2012 exploration p budget g of $450-$490M $ $ reflecting 2011 success (1) See final slide #3 20
Slide 21: Red Hill / Goldrush Discovery
Red Hill / Goldrush Discovery World-class mines and long Gold Acres discovery history Red Hill-Goldrush Discovery CORTEZ PIPELINE Potential for more discoveries C r e s c e n t Va l l e y Cortez Mountains Cortez Pits CORTEZ HILLS Horse Canyon New Discovery Mineralized Deposit RED HILL Current
Slide 22: Red Hill – Goldrush Resource
Red Hill – Goldrush mudstone & Mineralized Footprint Grade x Thickness p Updated Resource siltstone < 5 oz-ft o ft 5 -10 oz-ft Doubled Resource 10-20 oz-ft 20-50 oz-ft + 50 oz-ft oz ft Red Hill – Goldrush(1) RED HILL 1.3Moz Indicated 2011 EOY 5.7Moz Inferred Resource Footprint Volcanic V l i
Slide 23: Goldrush Complex
A 90ft @ 0.15 opt Goldrush Complex 80ft @ 0.16 opt OPEN OPEN 20ft @ 1.18 opt Step out drill results north of Red Hill show system is still open OPEN Drill results 120ft @ 0.32 0 32 opt between Red Hill 2011 EOY and Goldrush OPEN Resource Footprint confirm continuity OPEN High grade zones remai
Slide 24: Cortez - Continuous Organic Growth
Cortez ‐ Continuous Organic Growth Large growth opportunity in well endowed Cortez Camp Strong and continuous Carlin-style Carlin style mineralization Tabular mineralized horizon extends >4 kms from Red Hill to south of Goldrush, and remains open in multiple directions Continuity between the
Slide 25: Lumwana – Chimiwungo Plan View
Lumwana – Chimiwungo Plan View ABX Drillingg & 2011 ABX Resource Completed drilling Schematic Section 2011 Measured & Planned drilling Indicated Resource Roan Shoot Equinox Shoot Inferred Resource CHIMIWUNGO Mutoma $3.50/lb Cu Prospect Optimized Pit 1km 25
Slide 26: Lumwana – Chimiwungo Plan View
Lumwana – Chimiwungo Plan View Q4 2011 Drill Results Selective Drill Schematic Section 2011 Measured & Results Indicated Resource Roan Shoot Equinox Shoot Inferred Resource CHI883 13m @ 1.41% (148m) 20m @ 1.60% Cu 22m @ 0.87% Cu 16m @ 2.25% Cu 28m @ 1.00% Cu 37m @ 0.91% Cu 44m @ 1.00% Cu 41m @ 0.80%
Slide 27: Chimiwungo Q4 Summary
Chimiwungo Q4 Summary Drill ramp up on track Early Ea l results es lts as e expected pected and con conversion e sion / upgrade pg ade of resource for expansion case on track Thickened ore package likely to add additional resources along the Roan and Equinox Shoots System still remains open
Slide 28: 2011 Record Financial Results
2011 RECORD FINANCIAL RESULTS Net Adjusted EBITDA(1) Adjusted Op. Earnings Net Earnings(1) US$M 8,376 Cash Flow(1) US$M US$M US$M 6,521 28% 5,680 5,241 8% 4,484 4,666 3,582 25% 3,517 33% 2010 2011 2010 2011 2010 2011 2010 2011 (1) See final slide #1 28
Slide 29: Margin Expansion
Margin Expansion Total Cash Margins(1) Net Cash Margins(1) US$/oz 1,578 US$/oz 1,578 1 118 1,118 1 239 1,239 Avg. Realized Price(1) 1,228 Avg. Realized Price(1) 1,228 819 935 985 985 872 521 872 625 429 535 443 464 460 409 Total 337 360 339 293 Cash Net Costs(1) Cash C Costs (1) 2008 2009 2010 2011
Slide 30: 2012E Operating Outlook
2012E Operating Outlook Gold production 7 3-7 8 Moz 7.3-7.8 Total Cash Costs: $520-$560/oz(1) Net Cash Costs: $400-$450/oz(1) Copper production 550-600 Mlbs at total cash costs of $1.90-$2.20/lb $ 90 $ 0/ b(1) (1) See final slide #1. IFRS basis; net cash costs based on expected realized copp
Slide 31: 2012E Total Cash Costs
2012E Total Cash Costs Global Gold Industry Cash Cost Curve(1) $1,500 $1,000 $/oz $500 US$ Barrick 2012E Total Cash Costs $520 to $560(2) Pueblo Viejo $300 to $350(2,3) $0 Pascua-Lama -$225 to -$275(2,3) -$500 0% 33% 67% 100% Cumulative Production (1) Source: GFMS (Q3 2011 data); reported total cash
Slide 32: Financial Strength
Financial Strength Q4 2011 cash balance of ~$2.7 B Significant Si ifi t operating ti cash h fl flow generation ti – 2011 adjusted operating cash flow of ~$5.7 B(1) – 2011 operating cash flow of ~$5.3 ~$5 3 B 5 year, $4.0 B revolving credit facility Industry’s I d t ’ only l ‘A’ credit dit ra
Slide 33: 2012E Capex Outlook
2012E Capex Outlook Total 2012E capital expenditures of $5.5-$5.9 B include: Capital projects: $2.60-$2.75 B(1) Open O pit it and d underground d d mine i development: d l t $850-$925 M(1) Mine Mi site i expansion: i $850-$925 $850 $925 M(1) Mine site sustaining: $1.20-$1.30 B(1) (1) See f
Slide 34: Bullish on Gold
Bullish on Gold Gold retains purchasing power while other currencies are being devalued: – monetary and fiscal reflation & sovereign debt concerns – low real interest rates – inflation in emerging markets – excessive global FX reserves Growth in emerging market demand Central C t l banks b k b
Slide 35: In Closing
In Closing 2011 marked another successful year for Barrick – strong operating and record financial results – advanced d d project j t pipeline i li – replaced gold reserves and increased resources – added Lumwana and Jabal Sayid – new greenfield discovery (Red Hill/Goldrush) – positive recognition
Slide 36: Footnotes
Footnotes 1. Adjusted net earnings, adjusted operating cash flow, return on equity, EBITDA, net cash costs per ounce, net cash margin per ounce, total cash costs per ounce, total cash margin per ounce, total cash costs per pound and average realized price per ounce/pound are non-GAAP financial measu