Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Scotia Capital Mining Conference 2011
18 slides from Barrick Mining's conference presentation, Nov 29, 2011
Slide 1: Building Value in Everything We Do
Building Value in Everything We Do Scotia o a Capital ap a Mining g Conference o – November o b 29,, 2011 0 1 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 o
Slide 2: Barrick is Well Positioned
Barrick is Well Positioned Scale and global reach – ~$50 billion market cap; p 25,000 employees p y Geographic and operational diversity – 26 operating mines, 9 projects located on 5 continents High quality and growing resource base Operational, project and technical depth of expertise Sub
Slide 3: Barrick's Strategy
World Class Operations and Projects Total Global Gold Mines by Size 5 mines Barrick Mines by Size >1 Moz (2010 gold production) 9 mines >800 800 Koz K 3 Goldstrike Veladero 23 mines i Cortez >500 Koz 4 159 mines >100 Koz 5 3 Projects ~1 Moz Pueblo Viejo 17 2 Projects ~800 800 Koz Cerro Casale Turquo
Slide 4: Capital Allocation Strategy
Capital Allocation Strategy A Balanced Approach Track record of Invest in high Balance sheet paying a return projects management progressive dividend d d d Improve quality of Maintain strong credit Dividend increased portfolio with long life, ratings, preserve access by 25%(1); low cost gold and to
Slide 5: 2011 Strong Financial Results
2011 STRONG FINANCIAL RESULTS Nine months ended September 30 Realized Gold Gold Margin(1) Gold Margin(1) Price((1)) 1,550 11550 550 Total Cash Cost Basis Net Cash Cost Basis $US/oz $US/oz $US/oz 1,225 1225 1,105 1105 11184 1,184 184 31% 38% 887 887 785 785 41% 9M 10 9M 11 9M 10 9M 11 9M 10 9M 11 9M
Slide 6: Margin Expansion
Margin Expansion Total Cash Margins(1) Net Cash Margins(1) 1,290 1,415 US$/oz US$/oz 79 72 % % 722 821 453 392 Total Cash Costs 328 293 Net Cash Costs Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 10 10 10 10 11 11 11 10 10 10 10 11 11 11 (1) See final slide #1. Assumes a market copper price of $3.25/lb
Slide 7: EPS & EBITDA per share Growth
EPS & EBITDA per share Growth $1.50 $2.50 Adj. Net Earnings (1) EBITDA (1) US$ per share US$ per share $1.20 $2.00 $0.90 $1.50 $0.60 $1.00 $0.30 $0.50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 10 10 10 10 11 11 11 10 10 10 10 11 11 11 $0.00 $0.00 (1) See final slide #1 13 ROE versus Peers 2011E Retu
Slide 8: Dividend Growth
Dividend Growth Semi-Annual Dividends Quarterly (presented as a quarterly equivalent)(1) Dividends 15¢ US¢ ¢pper share +25% 12¢ +170% 9¢ OR 22% CAGR 6¢ 5.5¢ 2006 q quarterlyy equivalent q 3¢ 0¢ 2006 2007 2008 2009 2010 2011 (1) See final slide #10 15 Reserves and Resources(1) Gold Silver Contained i
Slide 9: History of Gold Reserve Growth
History of Gold Reserve Growth THROUGH ACQUISITION AND EXPLORATION Proven and Probable – millions of ounces of gold ~140(1) 140 TOTAL EXP’N 20 21 Moz 1990 109 110 Divestitures 2010 TOTAL TOTAL MINED ACQ’D (1) See final slide #3 17 History of Reserve/Resource Growth 50 Reserve/resource ounces added p
Slide 10: 2011 Exploration Program
2011 Exploration Program(1) $370-$390M ~80% 38% North America African Barrick 13% $210M 11% South America Australia A t li Pacific 38% 2011 exploration budget increased to $370-$390 M; 2010 Operation 2011 Development Project ~40% to be capitalized (1) See final slide #5 19 Red Hill / Goldrush Pipe
Slide 11: Result Highlights
80ft @ 0.16 opt & 30ft @ 0.25 opt Result Highlights(1) 60ft @ 0.20 opt & p 40ft @ 0.11 opt Drill Hole RED 120ft @ 0.17 opt Grade x Thickness Roberts Mountains HILL Thrust Less than 5 oz-ft 5 to 10 oz oz-ft ft 10 to 20 oz-ft 20 to 50 oz-ft Greater than 50 oz-ft opt = ounces per ton gold 128ft @ 0.316
Slide 12: Pueblo Viejo
Pueblo Viejo IN CONSTRUCTION First production anticipated in mid-2012 – overall construction 80% complete 625-675 K oz of expected average annual production to Barrick at total cash costs of $275-$300/oz(1) Mine construction capital of $3.6-$3.8 B(2) (100%) or $2.2-$2.3 B (Barrick’s 60% share)
Slide 13: Project Cash Flow Potential
Project Cash Flow Potential Pueblo Viejo EBITDA(1) Pascua-Lama EBITDA(1) US$B – Barrick’s share US$B ~0.9 ~1.7 125% 143% ~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 #7 (3) See final slide #6 (4) Based on a silver price of $
Slide 14: Projects – Next Generation
Projects – Next Generation Barrick’s deep CONSTRUCTION FEASIBILITY/ Jabal Sayid (Cu) - Saudi Arabia project pipeline PERMITTING provides Cerro Casale (Au/Cu) - Chile significant g Donlin Gold (Au) (A ) - Alaska Al k future option Kabanga (Ni) - Tanzania value Reko Diq (Au/Cu) - Pakistan PRE-FEASIB
Slide 15: Industry Profitability vs Share Price
Industry Profitability vs Share Price 350% +353% Gold equity returns Senior 300% O Operating ti have not reflected Cash Flow(1) increased 250% +224% 224% profitability from 200% Gold expanding margins 150% 100% +80% S i Share Senior Sh 50% Returns(2) 0% 2004 2005 2006 2007 2008 2009 2010 (1) Combi
Slide 16: Bullish on Gold
Bullish on Gold Gold retains purchasing power while other currencies are being devalued: – sovereign debt concerns – low real interest rates – Central Bank intervention in currency markets – excessive i global l b l FX reserves Growth in emerging market demand Central banks become net buyers
Slide 17: Are Current Prices Sustainable?
Are Current Prices Sustainable? Developed vs Developing Global demand for Economies GDP (% per annum) resources will continue 3% to intensify Copper demand also to be supported by the 2% urbanization of emerging markets and constrained supply 1% 0 1980-90 90-00 00-10 10-20 20-25 Sources: 1980-20
Slide 18: Investment Case for Barrick
Investment Case for Barrick Deep pipeline of projects offering investment options for the future Continually improve CSR practices to maintain license to operate Exploration commitment and strategy yielding major results with new discoveries at Red Hill/Goldrush Growing cash flow and positiv