Barrick Mining Corporation · TSX:ABX

Barrick Mining — Scotiabank Mining Conference 2013

20 slides from Barrick Mining's conference presentation, Dec 3, 2013

  1. Slide 1: Scotiabank Mining Conference

    Scotiabank Mining Conference December 3, 2013 1

  2. 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, ot

  3. Slide 3: Barrick at a Glance

    Barrick at a Glance Pascua-Lama suspension reduces Capital 2014 capex guidance by up to $1B discipline Optimizing portfolio: ~$700M of non-core asset sales to date in 2013 +55% of 2013 production from 5 large High quality mines at AISC of ~$700/oz assets Lowest all-in sustaining costs of senior prod

  4. Slide 4: High Quality Portfolio

    High Quality Portfolio  5 mines contributed ~55% of production in first nine months 2013 at AISC of ~$660/oz(1) 9 months ended Sept. 30, 2013 CORTEZ GOLDSTRIKE LAGUNAS NORTE VELADERO PUEBLO VIEJO TOTAL/AVG Production(2) 1,093 Koz 650 Koz 411 Koz 499 Koz 331 Koz 2,984 Koz AISC $416/oz $955/oz $633/o

  5. Slide 5: Pueblo Viejo: Ramping Up

    Pueblo Viejo: Ramping Up  2013E production: ~500koz(1,2) at AISC of $700-$750/oz(2)  Power plant commissioned in Q3 on schedule  Full capacity expected in H1 2014  Revised SLA finalized and ratified by Congress (1) Barrick’s 60% share. (2) Actual results will vary depending on how the ramp up pr

  6. Slide 6: Plans to Maximize Cash Flow

    Plans to Maximize Cash Flow ASSET THIRD QUARTER 2013 PROGRESS Bald Mountain  Implementing mine plan changes Yilgarn South mines  Sold Plutonic  Sale process underway for Plutonic and Kanowna Pierina  Initiated closure  Deferred open pit expansion; evaluating changes to Hemlo underground mine pl

  7. Slide 7: Pascua-Lama: Decision to Suspend

    Pascua-Lama: Decision to Suspend  Decision to suspend in light of: – prolonged lower metal prices – continued uncertainty and risks facing the project today  A new phased approach to development  Aligns with disciplined capital allocation framework and improves near term cash flow – 2014 capex gu

  8. Slide 8: Pascua-Lama: Phased Approach

    Pascua-Lama: Phased Approach  To resume construction under a phased approach when conditions warrant  Benefits: Synchronize Renegotiate Further spending More Improved contracts life-of-mine with permit flexibility cost control and reduce plan approvals overhead optimization More information/clarit

  9. Slide 9: Pascua-Lama: Ramp-down

    Pascua-Lama: Ramp-down  Ramp-down to be carried out for an efficient re-start when conditions warrant  2014 estimated costs of $0.25-$0.30B(1)  Actual 2014 expenditures will be dependent on a number of factors, including regulatory requirements (1) ~50% expected to be capitalized 9

  10. Slide 10: Third Quarter Results

    Third Quarter Results  Adjusted net earnings of Gold AISC(1) ($US/oz) Copper C1 Costs(1) ($US/lb) $0.58B ($0.58/sh)(1) 1,010 2.01 -9%  Net earnings of $0.17B ($0.17/sh) -16%  Operating cash flow (OCF) of $1.23B 916  Adjusted OCF of $1.30B(1) 1.69  Gold production of 1.85 Moz  Copper production

  11. Slide 11: 2013 Guidance Improvements

    2013 Guidance Improvements Gold AISC(1) ($/oz) Gold Adjusted Total Capex(1) ($B) Operating Costs(1,2) 1,000- ~11% ($/oz) 1,100 900- 975 5.7- ~21% 6.3 ~7% 4.5- 5.0 610- 660 575- 600 Original Current Original Current Original Current 400 400 2.0 (1) Percentages calculated based on mid-point of guidanc

  12. Slide 12: Lowest Cost Senior Producer

    Lowest Cost Senior Producer 2013e All-In Sustaining Costs (US$/oz) Senior Peers Weighted Avg(1) 1,150-1,225 Barrick  High quality portfolio 900-975  Successful cost reduction and portfolio optimization efforts 500 (1) See final slide #2. 12

  13. Slide 13: Lumwana Performance Improvements

    Lumwana Performance Improvements  193 Mlbs of copper Production (Mlb) C1 Costs ($/lb) 80 $4.00 production in first nine New mine plan months of 2013 adopted 70 $3.50 – C1 cash costs: $2.34/lb – C3 fully allocated costs: 60 $3.00 $3.04/lb(1) New leadership appointed  Significant cost reductions: 50

  14. Slide 14: Improved 2013 Copper Guidance

    Improved 2013 Copper Guidance Production(1) (Mlbs) C1 Cash Costs(1) C3 Fully Allocated ($US/lb) Costs(1) ($US/lb) 520- ~8% ~5% 550 2.60- 2.85 480- 2.40- 540 2.60 ~11% 2.10- 2.30 1.90- 2.00 Original Current Original Current Original Current 400 1.0 1.0 (1) Percentages calculated based on mid-point of

  15. Slide 15: Cost Reduction Initiatives

    Cost Reduction Initiatives Total annual savings target − $500M Annual Savings Targets ($M) Cost reduction programs well 500 underway  All costs under review 150  Specific savings targets established  Majority of 1,850 identified positions eliminated 250 New operating model being phased in  Focus

  16. Slide 16: New Operating Reporting Structure

    New Operating Reporting Structure COO Lagunas Pueblo North Australia Global Veladero Goldstrike America Cortez Pacific Norte Viejo JV Copper Oper. Head Oper. Head 7 Other 5 Other 2 Copper Mines Mines(1) Mines  Core mines will report directly to COO  Brings senior management closer to mines  Allow

  17. Slide 17: Financial Position and Liquidity

    Financial Position and Liquidity  Generated $3.2B of operating cash flow in first nine months of 2013  ~$2.0B of reductions to 2013 budgeted costs and capex; $0.5B of targeted future annual cost savings  $4.0B undrawn credit facility extended to 2019  Lower 2014 cash outlay for Pascua-Lama  Ter

  18. Slide 18: Improved Financial Flexibility

    Improved Financial Flexibility  Reduces net debt by ~21%(1)  Eliminates ~$2.5B of debt repayments over next 5 years Post-Offering Scheduled Debt Repayments(2) 7.0 6.0 5.0 4.0 $0.8B 3.0 2.0 $0.2B 1.0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ (1) Based on debt outstanding as of Sept. 30,

  19. Slide 19: Barrick's Framework for Returns

    Barrick’s Framework for Returns Disciplined Capital Allocation  2014 capex guidance reduced by up to $1B with Pascua-Lama suspension  Portfolio optimization: non-core asset sales High Quality Asset Base  5 mines to contribute ~55% of production at AISC of ~$700/oz in 2013E  On track with 2013E p

  20. Slide 20: Footnotes

    Footnotes 1. Adjusted net earnings, adjusted net earnings per share, adjusted operating cash flow, all-in sustaining costs per ounce (“AISC”), adjusted operating costs per ounce, C1 cash costs per pound and C3 fully allocated cash costs per pound are non-GAAP financial performance measures with no s

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