Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — BMO Capital Markets Global Metals and Mining Conference 2018
24 slides from Barrick Mining's conference presentation, Feb 26, 2018
Slide 1: Barrick Gold Corporation
Barrick Gold Corporation BMO Capital Markets, Global Metals and Mining Conference | February 26, 2018 | Hollywood, Florida 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, o
Slide 3: Executed on 2017 Priorities
Executed on 2017 Priorities $ $ Maximize Disciplined Balance Operational Talent Free Cash Investment Sheet Excellence Development Flow Successful Reduced debt Gold Upgraded Generated free exploration by more than production of talent and cash flow1 of added $1.5B 5.32 Moz at developing next $669 mil
Slide 4: Improved Safety with Environmental Performance
Improved Safety with Environmental Performance Total Recordable Injury Reportable Environmental Frequency Rate1 Incidents 0.58 53 0.46 40% 0.40 0.35 Lowest in 29 company history 85% 13 8 2014 2015 2016 2017 2014 2015 2016 2017 1. See Endnote #5 4
Slide 5: 2018 Priorities
2018 Priorities $ $ Free Cash Operational Capital Project Talent Flow Excellence Discipline Pipeline Development Free Cash Flow Evolution of Strengthen Maximize Value of Build Partnerships Per Share Focus Operations Balance Sheet Portfolio: Assets & & Develop Talent Build a business Focus on operati
Slide 6: Disciplined Approach to Investment
Disciplined Approach to Investment Operating Cash Essential Flows Sustaining Capital Goal: Maximize through Goal: Minimize through Organic Best-in-Class program of optimal mine sequencing, improvement superior execution and Debt Growth and capital discipline Management Resource Pipeline OCF FCF FCF1
Slide 7: Debt Reduction Progress
Debt Reduction Progress Exceeded $1.45B debt Total Debt ($B) reduction target for 2017 13.1 Annualized interest savings of ~$300M from start of Near 9.97 Term FULL YEAR 2015 Pre 2024 7.93 2017 TARGET EXCEEDED $1.5B Target to reduce REPAID 6.43 total debt to ~$5B Med. Term Target by YE 2018 202
Slide 8: Balance Sheet Improvement
Balance Sheet Improvement Strong near and medium term liquidity – $2.2B cash and equivalents at the end of 20171 – $4B undrawn credit facility ~75% of debt due post 2032 with an average maturity of 18 years2 – Less than $100M3 due before 20204 $5,050 1,000 Long Term 800 Current Debt3 ($M) Post $
Slide 9: Five Year Production and Cost Guidance
Five Year Production and Cost Guidance1 Production Cost of Sales AISC2 Capex3 (Moz) ($/oz) ($/oz) ($B) 5.3 1.40- 4.5- 850-980 750-875 1.60 5.0 765- 4.2-4.6 810- 815 850 750 1.36 1.1-1.5 794 17 18E 19E 20E 21E 22E 17 18E 19E 20E 21E 22E 17 18E 19E 20E 21E 22E 17 18E 19E 20E 21E 22E 1. See Endnotes #1
Slide 10: Stabilizing the Future
Stabilizing the Future (Attributable production, ounces millions) Greenfields Long-term Optionality not included in base plan: Norte Abierto, Donlin Gold, Alturas, Pascua-Lama 6.0 6.0 Asset Sales & Closure Brownfields Study: Lagunas Norte Mine Life Extension, PV Plant Expansion, Robertson 5.0 5.0 4.
Slide 11: Near-Term Organic Project Update
Near‐Term Organic Project Update Cortez Hills UG Turquoise Ridge Goldrush Lagunas Norte Expansion Expansion Cortez Hills Expansion Turquoise Ridge Lagunas Norte Underground Goldrush Expansion Expansion Expansion Expansion of CHUG Development Carbon‐in‐leach Flotation + autoclave Addition of 3rd into
Slide 12: Barrick Nevada – Goldrush
Barrick Nevada – Goldrush Feasibility Study Completed in Q4’17 Positive economic results with ~500koz average production over 16 years Board approval has been obtained Resource to Reserve Conversion Exploration Decline Portal 2016/17 Minex drilling improved confidence in the Goldrush resource
Slide 13: Turquoise Ridge – Production Improvements 3rd Shaft
Turquoise Ridge ‐ Production Improvements 3rd Shaft Current 3rd Shaft Reserves 80% of reserves are contained Vent Production Vent Production Resources in the North Zone 3rd Shaft Shaft Shaft Shaft Shaft Ozs Au Building 3rd shaft will improve access to the North Zone: – Increase production rates
Slide 14: Pueblo Viejo: Plant Expansion to Increase Production
Pueblo Viejo: Plant Expansion to Increase Production A favorable scoping study PLANT EXPANSION – increase ore feed 50% to 12Mtpa1 was completed in 2017, assessing the use of a New Facilities pre-oxidation heap leach and a flotation concentrator Higher Grade Mill Flotation Concentrate Ore 4Mtpa1
Slide 15: Strong Track Record of Organic Value Generation through Exploration
Strong Track Record of Organic Value Generation Reserves (Moz of gold) Near Mine and New Discoveries Spent $3.72B on exploration Goldstrike Overall finding cost 129 ~641 Cortez ~$29/oz 1.3Bt @ Donlin through exploration 1.55g/t Pascua-Lama 20 Pueblo Viejo Total found 1990 2017 Veladero 110 33 Go
Slide 16: Global and Mine Exploration Investment
Global and Mine Exploration Investment1,2,3 ($M) 218 92 Minex 149 131 50 59 126 Globalex 99 72 2016 2017 2018 1. Adjusted for divestitures, change of ownership and closure sites, $MM and $/oz 2. Minex includes capitalized drilling 3. See Endnote #1 16
Slide 17: 2017 Gold Reserves
2017 Gold Reserves (Moz) 85.95 2,007 MT 1.33 g/T 76.76 –9.19 1,581 MT Equity 1.51 g/T Replacement Changes +7.92 64.441 62.71 1,295 MT –14.05 1,304 MT 1.55 g/T 1.50 g/T Pascua-Lama –6.19 Processed in 2017 40.0 2016 2016 2016 2017 Year End Equity Post Pascua-Lama Year End Adjusted Reclassification 1.
Slide 18: Digital Progress
Digital Progress 2017 Achievements: focused on five main digital initiatives Automated Short Interval Automation & Predictive Digital Work Processing Control Remote Control Maintenance Management Leverages advanced Real‐time monitoring of Automation at scale Providing a solution Automating the visib
Slide 19: 2018 – A Company of Owners
2018 – A Company of Owners Generate free cash flow through price cycles Optimize portfolio, advance organic projects and exploration Embed data, digital and innovation to the core of our business Reduce total debt to ~$5 billion by end of 2018 Upscale talent and focus on meaningful partner
Slide 20: Technical Information Endnotes
Technical Information The scientific and technical information contained in this presentation has been reviewed and approved by Steven Haggarty, P. Eng., Senior Director, Metallurgy of Barrick; Rick Sims, Registered Member SME, Vice President, Resources and Reserves of Barrick; and Patrick Garretson
Slide 21: Appendix A
Appendix A NOTE 1 “Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial performance measures. Adjusted net earnings excludes the following from net earnings: certain impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and inv
Slide 22: Note 3
NOTE 3 “Cash costs” per ounce and “All-in sustaining costs” per ounce are non-GAAP financial performance measures. “Cash costs” per ounce starts with cost of sales applicable to gold production, but excludes the impact of depreciation, the non-controlling interest of cost of sales, and includes by-p
Slide 23: Reconciliation of Gold Cost of Sales to Cash Costs and AISC
Reconciliation of Gold Cost of Sales to Cash costs, All-in sustaining costs and All-in costs, including on a per ounce basis For the three months ($ millions, except per ounce information in dollars) For the years ended December 31 ended December 31 Footnote 2017 2016 2015 2017 2016 Cost of sales re
Slide 24: Non-controlling interests, Exploration and evaluation costs, Capital expenditures
5 Non-controlling interests (Pueblo Viejo and Acacia) Non-controlling interests include non-controlling interests related to gold production of $137 million and $454 million, respectively, for the three months and year ended December 31, 2017 (2016: $127 million and $508 million, respectively; 2015:
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