Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Deutsche Bank Global Industrial and Basic Materials Conference 2011
23 slides from Barrick Mining's conference presentation, June 2011
Slide 1: Building Value in Everything We Do
Building Value in Everything We Do Deutsche Bank Global Industrial and Basic Materials Conference June 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: Global Footprint and Barrick's Strategy
GlobalFootprint 2010 P&P Reserves North America North America 41% 2011E Production Australia Africa 9% Pacific 11% North America South 44% America 39% Africa 7% Australia Pacific South Africa 25% America South 24% America Australia Pacific Mine Project 1 Barrick’s Strategy Focus on adding value… M
Slide 4: 2010 Operating and Financial Results
2010OperatingResults Gold Total Net Production Cash Costs(1) Cash Costs(1) Moz $US/oz 2% $US/oz 7.77 464 464 7.40 5% 457 457 5% 360 341 5 300 300 H1 09 H1 10 2009 2010 2009 2010 2009 2010 (1) See final slide #1 3 2010FinancialResults Realized Gold Gold Margin(1) Gold Margin(1) Price(1) Total Cash Co
Slide 5: 2010 Record Financial Results
2010RecordFinancialResults Net Earnings Adjusted Adjusted Operating US$M Net Earnings(1) Cash Flow(1) US$M US$M 4,783 4783 65% 3,274 3,279 2,899 2899 81% 1,810 2009 2010 2009 2010 Q2 09 2009 Q2 10 2010 -4,274 Hedge Book Elimination (1) See final slide #1 5 MarginExpansion Total Cash Margins(1) ~1,50
Slide 6: Leverage to Gold
LeveragetoGold 800% Barrick EPS & CFPS vs Gold Returns (US$) 700% Barrick’s adjusted 600% net earnings and ( = adjusted) cash flow growth 500% has significantly 400% outpaced the rise in gold prices(1) 300% 200% 100% (1) See final slide #1. All EPS figures are adjusted except Dec ‘04 is US GAAP ba
Slide 7: Q1 2011 Strong Financial Results
Q12011STRONGFINANCIALRESULTS Gold Realized Gold Gold Margin(1) Gold Margin(1) Production Price(1) Total Cash Cost Basis Net Cash Cost Basis Moz $US/oz $US/oz $US/oz 1,389 1389 1,081 1081 2.06 1.96 952 952 1,114 1114 25% 821 821 32% 722 722 32% 2009 2010 Q1 10 Q1 11 Q1 10 Q1 11 2009 Q1 10 2010 Q1 11
Slide 8: Barrick's Strategy; History of Gold Reserve Growth
Barrick’s Strategy Focus on adding value… Meet operational and financial targets to maximize benefits of rising metal prices Increase gold and copper reserves through exploration and selective acquisitions Invest in and develop high return projects Maximize the value of existing mines and pr
Slide 9: Gold Reserves and Resources; 2011 Exploration Program
GoldReservesandResources(1) ounces millions 37.2 Replaced gold 34.8 31.6 Inferred industry’s largest 76.3 reserves for fifth 31.9 65.0 61.8 M&I consecutive year 24.9 50.6 Grew M&I 35.0 resources by 24% 138.5 139.8 139.8 12.4 123.1 124.6 P&P Grew inferred 17.6 resources by 18% 88.6 05 06 07 08
Slide 10: Barrick's Strategy; Cortez
Barrick’s Strategy Focus on adding value… Meet operational and financial targets to maximize benefits of rising metal prices Increase gold and copper reserves through exploration and selective acquisitions Invest in and develop high return projects Maximize the value of existing mines and pr
Slide 11: Cortez Hills Exceeds Expectations
CortezHills ExceedsExpectations Cortez Hills built on schedule Exploration Drilling Underground and budget Expanded Cortez operation exceeded 2010 guidance producing 1.14 Moz at total cash costs of $312/oz(1) Q1 2011 production of 366 K oz at total cash costs of $220/oz(1) Record of Decision
Slide 12: Pueblo Viejo Project Update
PuebloViejoDOMINICANREP. 19 19 PuebloViejoProjectUpdate Autoclave Plant Construction Construction well advanced 625-675 Koz to Barrick at total cash costs of $275-$300/oz(1) +25 year mine life Significant value added since acquisition (1) See final slide #1 and #2 20 20
Slide 13: Pueblo Viejo Value Added
PuebloViejoVALUEADDED 2006 2011 13.4 M oz of reserves (1) 23.7 M oz of reserves (1) Modest economics Robust economics; improved SLA arrangements Technical challenges, low recoveries Enhanced flow sheet, – Au: 92% increased recoveries – Ag: 5% – Au: 92% – Cu: 0% – Ag: 87% – Cu: 79% FUTURE
Slide 14: Pascua Lama Project Update
PascuaLamaProjectUpdate Process Plant Construction Pre-stripping expected to in Argentina commence in Q4 2011 Initial production expected in H1 2013 Pre-production capital expected Tunnel progress to be ~$3.3-$3.6B(1) from Chile – >45% of capital committed 750-800 Koz at total cash costs of
Slide 15: The Next Generation Projects
ProjectsTHENEXTGENERATION Cerro Casale, Chile (75%) Potential to be 1 M oz producer (100%) Gold Copper Barrick’s share of resources(1) Permitting preparation for EIA submission underway M oz B lbs Project update to be provided with Q2 results 18.9 8.4 Inferred Inferred Donlin Creek, Alaska (50
Slide 16: Overview of Equinox
OverviewofEquinox Large copper producer with two major assets JABAL SAYID – 100% owned Lumwana mine in Zambia began operations in 2008 – 100% owned Jabal Sayid development project in Saudi Arabia(1) 323 Mlbs of copper production in 2010(2) 5.7 Blbs of copper reserves(3) LUMWANA 5.5 Blbs of i
Slide 17: Investment Considerations
InvestmentConsiderations Excellent copper fundamentals Currently producing Large resource with substantial upside in an excellent region Expansion potential Strong financials Available 29 EnhancedGrowthPotential Barrick Gold Production Barrick+ Equinox Copper Production (Moz) (Mlbs) +ZAL
Slide 18: Lumwana Regional Exploration Targets
Lumwana RegionalExploration Targets(1) DETAIL NEXT (1) See final slide #6 31 Lumwana PlanView Chimiwungo Pit +PossibleExpansions(1) 1 Kilometre Mutoma (1) See final slide #6 32
Slide 19: Equinox Projects
EquinoxProjects(1) SaudiArabia OTHER OPERATING MINES SUKHAYBARAT BULGHAH MAHD ADH DHAHAB (1) See final slide #6 33 Jabal Sayid +PossibleExpansions (1) Existing Portal Lode 1 e Upper copper ting Declin Exis sulphide zone Positive open pit study on lode 1 would increase Lode 2 operational flexibilit
Slide 20: Contribution to 2010 Revenue
Contributionto2010Revenue(1) Barrick + Equinox Senior Peer Average 82% 81% Gold Gold 19% 18% Copper Copper & Other (1) See final slide #8 35 Barrick’s Strategy Focus on adding value… Meet operational and financial targets to maximize benefits of rising metal prices Increase gold and copper reser
Slide 21: Corporate Social Responsibility
CorporateSocialResponsibility First Canadian mining company to join the Voluntary Principles on Security & Human Rights CSR Advisory Board in development Independent director with CSR expertise Dow Jones Sustainability Index - World for 3rd year Nasdaq - world’s top 100 sustainable compani
Slide 22: 2011E Outlook
2011EOutlook Production 7.6-8.0 million ounces Total Cash Costs: $450-$480/oz(1) Net Cash Costs: $340-$380/oz(1) 9 million ounce production target within five years(2) (1) IFRS basis; net cash costs based on assumed realized copper price of $3.75/lb. See final slide #1 (2) See final slide #4
Slide 23: Investment Case for Barrick
InvestmentCaseforBarrick Excellent project pipeline Acquisition of Equinox will meaningfully contribute to earnings and cash flows Continue commitment to strong CSR practices Compelling valuation 41 FOOTNOTES Except as otherwise indicated, the information concerning Equinox contained in this
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