Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — TD Newcrest Mining Conference 2011
12 slides from Barrick Mining's conference presentation, Jan 26, 2011
Slide 1: The Gold Industry Leader
The Gold Industry Leader TD Newcrest Mining Conference January 26, 2011
Slide 2: Cautionary Statement on Forward-Looking Information
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 operating performance and other statements that express management's expectations or estimates of future perfor
Slide 3: A Compelling Investment Case
A Compelling Investment Case Investment Case for Gold Strong fundamentals Investment Case for Barrick Capturing benefits of high gold and copper prices – record Q3 net income and operating cash flow; margin expansion – annualized return on equity of ~18%(1) – strong financial position; dividend
Slide 4: Net Official Sector Gold Sales
Net Official Sector Gold Sales (tonnes) 663 479 484 365 Net official sector 236 buying for the first time since 1988 30 2004 2005 2006 2007 2008 2009 2010* -87 Source: GFMS, World Gold Council * Q4 2010 is estimate 3 Gold is Not in a Bubble 2000 Gold’s rise since 2001 has been modest compared to
Slide 5: Margin Expansion
Margin Expansion Total Cash Costs(1) vs Gold Prices +$1,300 US$ per ounce Avg. Realized Price(1) 1,184 736 Margins(1) 985 872 519 429 621 545 276 439 265 443 466 448 214 345 280 225 Total Cash Cost 05 06 07 08 09 9 months (1) see final slide #1 10 5 Record Financial Results Net Income Adjusted Op. C
Slide 6: Leverage to Gold
Leverage to Gold Barrick EPS & CFPS vs Gold Barrick’s adjusted Returns (US$) 600% earnings and cash flow (1) ( = adjusted) growth has significantly 500% outpaced the rise in 400% gold prices over the past 5 years 300% 200% 100% (1) See final slide #1. All EPS figures are adjusted except 0% Dec 04
Slide 7: Balanced Portfolio
Balanced Portfolio 2009 P&P Reserves North America North America 2010E Production 40% Africa 12% North America South 40% America Australia 35% Pacific 13% Africa 8% South America 27% Australia South Africa Pacific 25% America Australia Pacific Industry’s Largest Reserves and Production Mine Projec
Slide 8: Barrick's Strategy
Barrick’s Strategy Focused on adding value… Increase gold and copper reserves through exploration and selective acquisitions Invest in high return development projects Maximize value of existing mines Leverage technical skills and regional infrastructure to commercialize new deposits Enhan
Slide 9: Cortez Hills and Pueblo Viejo
Cortez Hills ‐ Exceeds Expectations Cortez property for 9 months ended Sept. 30, 2010: – production of 936 Koz at total cash costs of $307/oz(1) Supplementary EIS and ROD expected early 2011 Mining the Open Pit 1313 (1) See final slide #1 Pueblo Viejo Project Update Initial production expected
Slide 10: Pascua-Lama and Cerro Casale
Pascua‐Lama Project Update First rock removal from cross-border ore Initial production transport tunnel in Chile expected in Q1 2013 Detailed engineering and procurement over 90% complete In line with ~$3.0B pre-production capital Primary crusher platform excavation budget(1) – ~50% of capital
Slide 11: Value Creation Opportunities
Value Creation Opportunities Turquoise Ridge super pit potential(1) – Annual mining rate could conceptually increase to up to ~800 Koz/yr based on a potential open pit ore body of +20 million ounces(2)(3) (100% basis) Lagunas Norte sulfides: extends mine life by 4 years with additional ~2 Moz(3)
Slide 12: In Closing
In Closing Positive outlook for gold and exceptional leverage to the gold price Consistent operational execution contributed to record financial results Focused on value creation and increasing key metrics on a per share basis Targeting 9 Moz of annual production within the next 5 years Ca