Barrick Mining Corporation · TSX:ABX
Barrick Mining — Twiga Minerals — Q3 2020 Earnings Presentation
25 slides from Barrick Mining's earnings presentation, Oct 23, 2020
Slide 1: Twiga Minerals Corporation Limited Tanzania, Q3 2020
Twiga Minerals Corporation Limited Tanzania, Q3 2020 1
Slide 2: Cautionary statement on forward looking information
Cautionary statement on forward looking information… Certain information contained or incorporated by reference in this presentation, including any information as to our strategy, projects, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements,
Slide 3: To be world class, we need to be global
To be world class, we need to be global… Donlin Gold (50%) Golden Sunlight (100%) Hemlo (100%) Nevada Gold Mines (61.5%) Fourmile (100%) Loulo-Gounkoto (80%) Pueblo Viejo (60%) Jabal Sayid (50%) Massawa (11%i) Reunion Tongon (89.7%) Kibali (45%) Strategic Alliance Lagunas Norte (100%) North Mara (84
Slide 4: Barrick's history in Tanzania
Barrick’s history in Tanzania… Acacia loses LTO – 1 Jan - Barrick / Randgold management banned merge and New Barrick from Tanzania Team takes over African Barrick Gold 24 Jan - listed on LSE – 17 Sept - Barrick Barrick and Barrick acquires Barrick retains 63.9% John Thornton steps assumes full contr
Slide 5: Safety, Health and Environment…YTD
Safety, Health and Environment…YTD Safety LTIFR2 / million hours worked 3 3 LTI recorded for the quarter: 2 at North Mara and 1 at 2.5 Buzwagi 2 1.39 9 Total Recordable Injuries (TRI) for Q3: 6 at North 1.5 1 Mara, 2 at Bulyanhulu and 1 at Buzwagi 1.14 0.5 TRIFR1 of 2.75 compared to 1.99 in Q2 0 0 0
Slide 6: Safety, Health and Environment…YTD
Safety, Health and Environment…YTD Malaria Incidence Rate % Malaria 4.75 5 Malaria incident rate (MIR) 2.92% compared to 4 3.45 2.92 4.75% in Q2 3 2 YTD MIR – 11.09% 1 0 Q1 Q2 Q3 Covid-19 Covid-19 pandemic precautions ongoing with more emphasis on social distancing, hand hygiene and face masks at al
Slide 7: Environmental Performance
Environmental Performance… General Water Overall good performance Water efficiencies No Class 1 & 2 incidents were recorded in the quarter3,4 North Mara 0.37m3/t A total of 14 Class 3 incidents were recorded vs. 21 in Q2 Bulyanhulu 0.1m3/t Govt. Environmental Committee visit to all 3 mines, no major
Slide 8: What Barrick inherited in 2019
What Barrick inherited in 2019… North Mara Poor understanding of the orebodies On care and maintenance as result of a series of issues with the tailings dam No social license to operate in Tanzania Various international court cases and investigations regarding a wide range of matters Poorly motivate
Slide 9: A year later…what Barrick has achieved
A year later…what Barrick has achieved Framework Agreement signed on 24 January 2020 with President Magafuli in attendance Working to take combined North Mara and Bulyanhulu to Tier 15 status $100 million tranche of $300 million settlement paid in May 2020 10 exploration licenses around North Mara a
Slide 10: Q3 2020 progress towards delivering on business plan
Q3 2020 progress towards… delivering on business plan1 Production Koz 27 24 24 9 8 8 77 81 79 Q1 2020 Q2 2020 Q3 2020 North Mara Bulyanhulu Buzwagi Year to date production currently at 338koz and full year production on track to fall within market guidance Mining commenced at Bulyanhulu during Q3 20
Slide 11: Operations update
Operations…update UG ore tonnes1 300 271 North Mara transitioned to underground mine during the 250 228 222 year and significant improvements made to improve 200 costs and operational effectiveness 150 100 Inherited legacy maintenance backlog with significant 50 skills gap addressed 12 - Q1 2020 Q2
Slide 12: Tier 1 progress
Tier 1 progress… Bulyanhulu restart and feasibility Mining commenced in Q3; 2021 mine plan delivered and feasibility study on track showing decrease in cost profile Improved understanding of orebody has resulted in review of more efficient mining methods and fleet General improvements made to proces
Slide 13: Tanzania…a premier exploration destination in East Africa
Tanzania…a premier exploration destination in East Africa Kibali Large scale mineralised systems with potential for additional world class discoveries DRC Active greenfields exploration programmes have commenced on priority targets Next phase of permit consolidation underway North at North Mara Mara
Slide 14: Tanzania…numerous exploration and growth opportunities
Tanzania…numerous exploration and growth opportunities Bulyanhulu Growth objectives in 2020: (Looking W) Replace production depletion and discover additional resources to increase mine life UG Near Mine Upside Potential: Develop- Review of systems at North Mara & Bulyanhulu validates numerous open t
Slide 15: Gokona Trend…Near Mine and District Scale Potential
Gokona Trend…Near Mine and District Scale Potential Near Mine Potential Kofia Target Upper West 800m Conversion Drilling N Tertiary Fault (dextral) Nyabigena HW Contact (MSC) Gokona FW Contact (VAN) IP Chargeability Anomaly Alteration 600m KDH001 Currently 533m Regional Scale Potential Sparse RC (<1
Slide 16: In-country investments
In-country investments… Investment $ million $530m paid in country in form of taxes, permits, 33 7 infrastructure, salaries and payments to local suppliers 153 Maiden interim cash dividend $250m paid on the 100 13 October 2020 Capital and exploration expected to exceed $180m of which half relates to
Slide 17: National workforce commitment
National workforce commitment… Tanzania Headcount Q3 2020 Recruitment ongoing, specifically at the Bulyanhulu restart project. Employment and Company Expats Contractor Expats transition plans presented to Mining 58 (2%) 59 (2%) Commission to ensure local empowerment and development World leading tal
Slide 18: Local content
Local content… Leveraging our Supply Chain to enhance our License to Operate $118 million spent on local contractors and suppliers year to date and $41 million during Q3 2020 Key achievements: Local content plans approved by Mining Commission for all operations Successful transition to Tanzanian Sec
Slide 19: Local content opportunities
Local content opportunities… Key opportunities to further enhance local content Leverage strategic positioning of Dar es Salaam’s port and industrial development to become a strategic supply hub to support other Barrick operations and drive synergies across East Africa Continue to advance stakeholde
Slide 20: North Mara… water management
North Mara… water management 4 lines and pumps from TSF to Rama Pit installed during Q1 2020 As of 30th June 2020, a total of 3.5 million m3 of water have been pumped from the TSF to Rama Pit Water monitoring boreholes installed and in use for Rama Pit Addition of 4 evaporators - project completed a
Slide 21: Resolving legacy land compensation
Resolving legacy land compensation… Land compensation at TSF 2 Land area: 1609 people compensated at TSF 2 to a total value of Tsh. 32.7 Billion Engagement with village leaders continues to encourage people to collect their payment Plans to relocate the graves and government institutions such as sch
Slide 22: Resolving legacy land compensation
Resolving legacy land compensation… Gena Land Acquisition: Moratorium issued by Government on 28 May 2020 to stop land development Valuation stopped as a result of election DC inspected area with the District Security Council to record land speculation post 28 May Moratoruim
Slide 23: Community development progress
Community development progress… Water Treatment Plant Upgrade Community Engagement Construction of Pediatric ward at Kemanyanki poultry project Nyamwaga Hospital at 20% of Completion
Slide 24: Power of People and Partnerships
Power of People and Partnerships… Governments Successful partnerships in NGOs and host countries are key to Regulators finding, developing and running world class mines Examples of this are reflected in the success of our operations in Africa where we’ve delivered long term value for all our Mining
Slide 25: Endnotes
Endnotes… 1. Total reportable incident frequency rate (TRIFR) is a ratio calculated as follows: number of reportable injuries x 1,000,000 hours divided by the total number of hours worked. Reportable injuries include fatalities, lost time injuries, restricted duty injuries, and medically treated inj