Barrick Mining Corporation · TSX:ABX

Barrick Mining — Barrick Gold — BAS-ML Global Industries Conference 2009

18 slides from Barrick Mining's conference presentation, Dec 10, 2009

  1. Slide 1: The Gold Industry Leader

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 The Gold Industry Leader BAS-ML Global Industries Conference December 10, 2009 1 CAUTIONARY STATEMENT ON FORWARD‐LOOKING INFORMATION Certain information contained in this presentation, including any information as to our stra

  2. Slide 2: Agenda

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Agenda ƒ Key Priorities and Progress ƒ Gold Market ƒ Hedge Book Elimination ƒ Operational Review ƒ Outlook 3 Key Priorities and Progress ƒ Meet production and cost targets – On track to achieve ƒ Increase low cost production

  3. Slide 3: Key Priorities and Progress

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Key Priorities and Progress ƒ Advance next generation of projects – Feasibility studies for Cerro Casale, Donlin Creek, Reko Diq and Kabanga near completion ƒ Replace and grow reserves and resources through disciplined Corpor

  4. Slide 4: Global Reflation

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Global Reflation 60 42 Gold Price and Global Liquidity 48 35 (year-over-year percentage change; correlation: .62) 36 28 24 21 12 14 0 7 -12 0 Global liquidity: Reserves + US Mbase -24 -7 -36 -14 82 83 84 85 86 87 88 89 90 91

  5. Slide 5: Gold's Diversifying Role

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Gold’s Diversifying Role Trailing 12 month performance to December 4, 2009 Gold +31.7% MSCI World Equity Index +24.0% S&P +22.4% CRB Index +19.3% Source: Bloomberg 9 Gold’s Diversifying Role Trailing 10 year performance to De

  6. Slide 6: Mine Supply Declining

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Mine Supply Declining Gold Production (millions of ounces) 85 80 75 Barrick estimate 70 65 60 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Sources: GFMS for historical production, Barrick for 2009-2011 11 Global Reserve

  7. Slide 7: Net Official Sector Sales

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Net Official Sector Sales (tonnes of gold) 663 ƒ Net official sector sales dropped to ~42 tonnes in 479 484 first nine months of 2009 365 ƒ Net buying in last two quarters 236 2009 62 04 05 06 07 08 Q1 Q2 Q3 Source: GFMS -5 -

  8. Slide 8: Outlook - Bullish on Gold

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Outlook ‐ Bullish on Gold ƒ Price supportive macroeconomic environment: – Low interest rates – Increased liquidity – Fiscal policies ƒ Diversification benefits ƒ Growth in investment demand ƒ Mine supply expected to contract

  9. Slide 9: Elimination of Gold Hedges

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Elimination of Gold Hedges Gold Floating Hedges Contracts Total Ounces MTM Liability Liability Liability (millions) ($ billions) ($ billions) ($ billions) As at September 7, 2009 3.0 1.9 3.7 5.6(1) Change in liability (2) – 0

  10. Slide 10: Margin Expansion

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Margin Expansion Net Cash Costs(1) vs Gold Prices 931 971 Average US$ per ounce 915 Realized Price(1) 873 571 600 Margin 621 511 545 536 439 392 393 344 404 180 214 360 371 Net Cash Cost 337 212 225 228 201 04 05 06 07 08 Q1

  11. Slide 11: Growing Reserves & Resources

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Growing Reserves & Resources(1) Copper Reserves Copper Resources Contained Silver pounds billions pounds billions within gold reserves ounces billions +3% 6.4 +8% 1.6(3) +6% 1.09 P&P 9.9 15.4 Inferred 6.2 1.03 12.5 M+I 5.4 20

  12. Slide 12: History of Project Execution

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 History of Project Execution ƒ Proven track record of Exploration Pipeline Donlin Creek FEASIBILITY successful development Cerro Casale of reserves and resources Reko Diq Kabanga Pascua-Lama CONSTRUCTION Pueblo Viejo Cortez H

  13. Slide 13: Buzwagi in Production

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Buzwagi in Production ƒ In line with $400 M capital budget(1) ƒ ~200 K oz at total cash costs of ~$335/oz(1) in 2009 (1) See final slide #2 First gold pour May 4, 2009 25 Cortez Hills Project Update ƒ Construction substantial

  14. Slide 14: Cortez Hills Project Update

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Cortez Hills Project Update ƒ The Cortez Hills project was approved by the BLM after an extensive EIS process ƒ The District Court had previously denied the plaintiffs’ request for an injunction ƒ The Court of Appeals disagre

  15. Slide 15: Pueblo Viejo Project Update

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Pascua‐Lama Project Update ƒ 750-800 Koz of gold Pioneering works Lay down area in Chile at total cash costs of $20-$50/oz(1) ƒ 35 Moz of silver(1) ƒ On track for first production Q1 2013 ƒ In line with $2.8-$3.0 B capital bu

  16. Slide 16: Projects in Feasibility

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Projects In Feasibility Reko Diq, Pakistan Donlin Creek, Alaska Kabanga, Tanzania Cerro Casale, Chile 31 Projects in Feasibility Gold Copper Nickel Barrick’s share ounces millions pounds billions pounds billions of reserves a

  17. Slide 17: Acquisition of 70% of El Morro

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Acquisition of 70% of El Morro ƒ Agreed to acquire Xstrata’s 70% interest for $465M cash ƒ Adds another high quality, advanced gold-copper asset in mining friendly district ƒ Xstrata reported gold resources of ~8.3 Moz and co

  18. Slide 18: Outlook

    Barrick Gold Corporation BAS-ML Global Industries Conference December 2009 Outlook ƒ Positive outlook for gold ƒ Fully unhedged on the gold industry’s largest production and reserves ƒ Simpler structure with elimination of hedge book ƒ World class project pipeline ƒ Strong financial position ƒ Signi

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