Barrick Mining Corporation · TSX:ABX

Barrick Mining — Barrick Gold — Denver Gold Forum 2009

22 slides from Barrick Mining's conference presentation, September 2009

  1. Slide 1: The Gold Industry Leader

    Barrick Gold Corporation Denver Gold Forum - September 2009 The Gold Industry Leader Denver Gold Forum September 2009 1 CAUTIONARY STATEMENT ON FORWARD‐LOOKING INFORMATION Certain information contained in this presentation, including any information as to our strategy, projects, plans or future fina

  2. Slide 2: Agenda

    Barrick Gold Corporation Denver Gold Forum - September 2009 Agenda ƒ Corporate Objectives ƒ Hedge Book Elimination ƒ Gold Market ƒ Operational Review ƒ Conclusion 3 Value Creation Focus CORPORATE PRIORITIES: ƒ Eliminate Fixed Price Gold Hedges within 12 months ƒ Meet production and cost targets ƒ Fo

  3. Slide 3: Value Creation Focus

    Barrick Gold Corporation Denver Gold Forum - September 2009 Value Creation Focus CORPORATE PRIORITIES: ƒ Complete lower cost projects ƒ Buzwagi $335/oz(1) ƒ Cortez Hills $350-400/oz(1) ƒ Pueblo Viejo $275-300/oz(1) ƒ Pascua-Lama $20-50/oz(1) ƒ Advance next generation of projects ƒ Actively pursue ac

  4. Slide 4: Gold's Diversifying Role

    Barrick Gold Corporation Denver Gold Forum - September 2009 Gold’s Diversifying Role Trailing 12 month performance to September 10, 2009 Gold +32.5% MSCI World Equity Index - 11.8% S&P - 15.3% CRB Index - 28.8% Source: Bloomberg 7 Gold’s Diversifying Role Trailing 10 year performance to September 4,

  5. Slide 5: Global Reflation

    Barrick Gold Corporation Denver Gold Forum - September 2009 Global Reflation 60 42 Gold Price and Global Liquidity 48 35 (year-over-year percentage change; correlation: .63) 36 28 24 21 12 14 0 7 -12 0 Global liquidity: Reserves + US Mbase -24 -7 -36 -14 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

  6. Slide 6: Global Reserves

    Barrick Gold Corporation Denver Gold Forum - September 2009 Global Reserves ƒ ~$7.5 trillion in total reserves (1) – 2/3 in USD Japan China 988.9 ƒ $5.7 trillion 2,100.0 Taiwan collectively held 492.9 in 18 countries Russia 394.3 Sources: Martin Murenbeeld, IMF August 2009 (1) incl. $0.9 trillion fo

  7. Slide 7: Mine Supply Declining

    Barrick Gold Corporation Denver Gold Forum - September 2009 Mine Supply Declining Gold Production (millions of ounces) 85 80 75 Barrick estimate 70 65 60 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Sources: GFMS for historical production, Barrick for 2009-2011 13 Bullish on Gold ƒ US dollar v

  8. Slide 8: Plan to Eliminate Gold Hedges

    Barrick Gold Corporation Denver Gold Forum - September 2009 Plan to Eliminate Gold Hedges ƒ Offering of 109.0 M common shares at $36.95/share for gross proceeds of ~$4.0 B ƒ Plan to eliminate Fixed Price Gold Hedges within 12 months to gain full leverage to the gold price ƒ ~$5.6 B(1) will be charge

  9. Slide 9: Plan to Eliminate Gold Hedges

    Barrick Gold Corporation Denver Gold Forum - September 2009 Plan to Eliminate Gold Hedges Fixed Price Contracts: ƒ 3 Moz of fixed price contracts(1) (Gold Hedges) – do not participate in gold price movements ƒ Mark-to-market (MTM) of $1.9 B(1) – sensitivity to gold price movements e.g. $10 change in

  10. Slide 10: Accounting Treatment

    Barrick Gold Corporation Denver Gold Forum - September 2009 Accounting Treatment ƒ To date, contracts have been accounted for as ‘normal sales’ under US GAAP ƒ Decision to eliminate changes accounting treatment of contracts ƒ Negative MTM of $5.6B will be recorded on balance sheet as a liability and

  11. Slide 11: Production and Cost Outlook

    Barrick Gold Corporation Denver Gold Forum - September 2009 Production and Cost Outlook ounces millions 7.7-8.1 ƒ Expecting higher production and lower total cash costs in 7.2-7.6 2010 (1) 2009 2010 6 (1) See final slide #3 21 Margin Expansion Total Cash Costs(1) vs Gold Prices 931 Average US$ per o

  12. Slide 12: Margin Expansion

    Barrick Gold Corporation Denver Gold Forum - September 2009 Margin Expansion Net Cash Costs(1) vs Gold Prices 931 Average US$ per ounce 915 873 Realized Price(1) 621 511 571 Margin 545 536 439 392 393 344 404 180 214 360 Net Cash Cost 337 212 225 228 201 04 05 06 07 08 Q1 Q2 (1) See final slide #2 2

  13. Slide 13: Growing Reserves & Resources

    Barrick Gold Corporation Denver Gold Forum - September 2009 Growing Reserves & Resources(1) Copper Reserves Copper Resources Contained Silver pounds billions pounds billions within gold reserves ounces billions +3% 6.4 +8% 1.6(3) +6% 1.09 P&P 9.9 15.4 Inferred 6.2 1.03 12.5 M+I 5.4 2007 2008 2007 20

  14. Slide 14: History of Project Execution

    Barrick Gold Corporation Denver Gold Forum - September 2009 History of Project Execution ƒ Proven track record of Exploration Pipeline successful development FEASIBILITY Donlin Creek Cerro Casale of reserves and resources Reko Diq Kabanga Beyond 2013 Pascua-Lama 2013 CONSTRUCTION Pueblo Viejo 2011 C

  15. Slide 15: Buzwagi in Production

    Barrick Gold Corporation Denver Gold Forum - September 2009 Buzwagi in Production ƒ In line with $400 M capital budget(1) ƒ ~200 K oz at total cash costs of ~$335/oz(1) in 2009 (1) See final slide #5 First gold pour May 4, 2009 29 Cortez Hills Project Update ƒ First gold expected in Q1 2010(1) ƒ ~1.

  16. Slide 16: Cortez Hills Project Update

    Barrick Gold Corporation Denver Gold Forum - September 2009 Cortez Hills Project Update ƒ Construction ~75% complete ƒ In line with $500 M(1) capital budget Carbon Column Plant (1) See final slide #5 Truck shop Conveyor 31 Pueblo Viejo Project Update ƒ Large, long life, low cost mine ƒ +25 year mine

  17. Slide 17: Pueblo Viejo Project Update

    Barrick Gold Corporation Denver Gold Forum - September 2009 Pueblo Viejo Project Update Grinding Circuit Footings 33 Pueblo Viejo Project Update ƒ In line with $2.7 B(1) capital budget ƒ Engineering and design more than 2/3 complete ƒ Autoclave and oxygen plant construction on schedule (1) See final

  18. Slide 18: Building Pascua-Lama

    Barrick Gold Corporation Denver Gold Forum - September 2009 Building Pascua‐Lama Zaldívar ƒ World-class deposit Antofagasta – gold reserves: 17.8 Moz(1) – contained silver in gold reserves: 717.6 Moz(1) Atacama ƒ Low cost, long life Cerro Casale – +25 year mine life CHILE ARGENTINA ƒ First full 5 ye

  19. Slide 19: Silver Sales Agreement

    Barrick Gold Corporation Denver Gold Forum - September 2009 Building Pascua‐Lama ƒ Attractive economics – double digit IRR – Silver Wheaton transaction improves returns ƒ Pre-production capital of $2.8-$3.0 billion(1) – financing strategy advanced ƒ Commissioning in late 2012 ƒ Manageable risks – in

  20. Slide 20: Projects In Feasibility

    Barrick Gold Corporation Denver Gold Forum - September 2009 Projects In Feasibility Reko Diq, Pakistan Donlin Creek, Alaska Kabanga, Tanzania Cerro Casale, Chile 39 Projects in Feasibility Gold Copper Nickel Barrick’s share ounces millions pounds billions pounds billions of reserves and resources(1)

  21. Slide 21: Strong Financial Position

    Barrick Gold Corporation Denver Gold Forum - September 2009 Strong Financial Position ‘A’ Rated Industry’s Highest Rated Balance Sheet $2.0B Cash Balance(1) $1.1B YTD Operating Cash Flow $1.5B Undrawn Line of Credit (1) Adjusted for public equity offering 41 The Gold Industry Leader ƒ Positive outlo

  22. Slide 22: The Gold Industry Leader

    Barrick Gold Corporation Denver Gold Forum - September 2009 The Gold Industry Leader ƒ Project execution excellence - 6 mines in 6 years ƒ Value creation potential in feasibility stage projects ƒ Generating strong earnings and cash flow: – H1 09 net income $863 M; operating cash flow $1.1 B; EBITDA

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