Barrick Mining Corporation · TSX:ABX
Barrick Mining — Scotia Capital Mining Conference 2010
25 slides from Barrick Mining's conference presentation, Nov 30, 2010
Slide 1: Scotia Capital Mining Conference
1 Scotia Capital p Mining g Conference November 30, 2010 2
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: Outlook - Bullish on Gold
Outlook ‐ Bullish on Gold Diversifying Role – up 416% over past 10 yrs (S&P – down 11%)(1) Price supportive macroeconomic environment: – monetary reflation (quantitative easing) – fiscal policies & sovereign debt concerns – trade & current account imbalances Growth in investment demand Centr
Slide 4: YTD Record Financial Results
YTD Record Financial Results Realized Gold Margin(1) Gold Margin(1) Gold Price(1) Total Cash Cost Basis Net Cash Cost Basis US$/oz 1,184 $US/oz $US/oz 838 838 736 736 940 26% 49% 54% 564 564 477 477 YTD 09 H1 09 YTD 10 H1 10 YTD 09 H1 09 YTD 10 H1 10 YTD 09 H1 09 YTD 10 H1 10 (1) See final slide #1
Slide 5: Leverage to Gold
Leverage to Gold Barrick EPS & CFPS vs Gold Barrick’s adjusted Returns (US$) 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 6: Strong Financial Position
Strong Financial Position A-Rated A Rated Industry’ss Highest Rated Balance Sheet Industry $4.3B Cash Balance(1) $1.5B Undrawn Line of Credit(1) $3.3B YTD Strong Operating Cash Flow(1) (1) As of September 30, 2010 11 Dividend Increase Semi-Annual Dividends Quarterly Dividend(1) US$ per share / Recor
Slide 7: Growth in 2010 and Beyond
Growth in 2010 and Beyond ounces 7.65-7.85 higher production and millions illi lower costs expected in 2010 9.0 M oz annual production 7.4 target within 5 years (1) US$/ US$/oz $466 ~$455 $455 Total cash costs(2) 2009 2010E 2009 2010E 6.5 400 (1) See final slide #7 (2) See final slide #1 13 Barric
Slide 8: 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 A t li Pacific Industry’s Largest Reserves and Production Mine
Slide 9: History of Reserve Growth
History of Reserve Growth THROUGH ACQUISITION AND EXPLORATION proven and probable – millions of ounces ~140 135 TOTAL EXPLORA- EXPLORA TION 20 18 Moz 1990 100 103 Divestitures 2009 TOTAL TOTAL MINED ACQUIRED 17 North America ASSET OVERVIEW Donlin Creek Nine mines and two major projects (one in con
Slide 10: Cortez Hills - Exceeds Expectations
Cortez NEVADA 19 Cortez Hills ‐ Exceeds Expectations Cortez property: – YTD production of 936 Koz at total cash costs of $307/oz(1) – 2010 production anticipated to be at the higher end of original guidance range of 1.08-1.12 Moz at total cash costs of $295- $315/oz((1,2) , ) Supplementary EIS a
Slide 11: Cortez Value Added
Cortez VALUE ADDED 2006 2010 6.3 M oz of reserves ((1)) 14.1 M oz of reserves (1) 60% interest 100% interest Pipeline: declining, declining Cortez Hills: 1.0 M oz, higher cost mine low cost mine generating significant cash flow FUTURE VALUE CREATION OPPORTUNITIES Cortez Hills Middle an
Slide 12: Pueblo Viejo Project Update
Pueblo Viejo Project Update Initial production expected in Q4 2011(1) In line with $3.0B $3 0B pre pre-production production capital budget((2)) (100%) 625-675 K oz to Barrick at total cash costs of $275-$300/oz(2,3) ~75% of capital committed Construction nearly 40% complete Ore Oxygen Ore
Slide 13: Turquoise Ridge JV
Turquoise Ridge JV NEVADA 25 Turquoise Ridge CREATING VALUE High grade underground operation Current production of 150-200 K oz/yr(1); 2009 reserve of 5 5.4 4 M oz (100% basis)(2) Significant exploration potential Open pit evaluation Substantial mineralization surrounding existing deposit Po
Slide 14: Turquoise Ridge Open Pit
Turquoise Ridge Open Pit 5.4 M oz UG reserve orebody +20 M oz conceptual open pit orebody 27 Donlin Creek ALASKA 28
Slide 15: Donlin Creek
Donlin Creek HIGHLIGHTS One of the largest undeveloped gold deposits in the world 2009 M&I resources: 36.9 M oz (100% basis) (1) Potential to be a +1 M oz/year producer (100% basis) at attractive operating costs Long life – currently +25 years Feasibility study completed and being optimize
Slide 16: South America Asset Overview
South America ASSET OVERVIEW Four operating mines and two major projects ((one in construction,, one in feasibility) y) 2010e – 2.10-2.15 M oz at total cash costs of $240-$260/oz (1) Lagunas g Norte Pierina PERU Zaldivar Cerro Casale Pascua-Lama Veladero CHILE ARGENTINA Mines Projects (1) See fi
Slide 17: Lagunas Norte Value Added
Lagunas Norte VALUE ADDED 2002 2010 One of the most 2009 year end reserve of significant greenfield 7.5 M oz(1) after four years discoveries of the of operating at +1.0 M oz pastt d decade d Barrick’s B i k’ lowest l t costt mine i Consistently operated ahead of expectations FUTURE VALUE CRE
Slide 18: Pascua-Lama Project Update
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 almost 90% complete In line with ~$3.0 B pre-production capital Primary crusher platform excavation budget(1) – ~40% of capi
Slide 19: Cerro Casale Project Update
Cerro Casale Project Update Detailed engineering about 20% complete ~$4.2 ~$4 2 B pre-production pre production capital budget (100%)(1) Barrick’s 75% share of production: – 750-825 K oz gold and 170-190 M lbs copper – Total cash costs of $240-$260/oz(1,2) Hydrologic drilling for water supply
Slide 20: Zaldívar Copper Highlights
Zaldívar Copper CHILE 39 Zaldívar Copper HIGHLIGHTS 2010 production of ~315 M lbs at $1.10-$1.15/lb (1) Current life of mine plan (~15 ( 15 yrs) – 2009: P&P of 6.0 B lbs Cu(2); M&I of 1.0 B lbs Cu(2) Deep sulfide potential to extend mine life ~16 yrs – +6 B lbs additional contained Cu(3) – ~2.
Slide 21: El Indio Belt
El Indio Belt SUPERGIANT POTENTIAL Collahuasi El Indio Belt is the last remaining segment of Cu-Au-Mo Cu Au Mo porphyry Abra Chuquicamata Zaldivar belts not exhaustively explored in Escondida g Chile-Argentina Salvador Barrick has a dominant land Chile Cerro Casale position in this highly p g y
Slide 22: Australia Pacific Creating Value
Australia Pacific CREATING VALUE Porgera Increased ownership to 95% from 75% in 2007 on favourable terms; focused on UG mine extensions and ramp up; significant exploration potential Kalgoorlie Golden Pike layback in progress to extend mine life to 2022; additional opportunities include Fimiston
Slide 23: African Barrick Asset Overview
African Barrick ASSET OVERVIEW Four operating mines and two projects 2010e – ~0.575 0.575 M oz (ABX share) at total cash costs of $620-$640/oz (US GAAP) (1) Tusker North Mara Tulawaka Bulyanhulu Golden Ridge Buzwagi TANZANIA Mines Projects (1) See final slide #1 45 African Barrick CREATING VALUE
Slide 24: 9 Million Ounce Target
Target Production 9 MILLION OUNCE TARGET Donlin Creek WITHIN FIVE YEARS Turquoise Hemlo Ridge Goldstrike Cortez Bald Mountain Reko Diq Pueblo Viejo Nyanzaga Kabanga g North Mara L Lagunas N Norte t Tulawaka Bulyanhulu B l h l Porgera Pierina Buzwagi Zaldívar Granny Smith Cerro Casale Kalgoorlie Pasc
Slide 25: A Compelling Investment Case
A Compelling Investment Case Investment Case for Gold Strong fundamentals Investment Case for Barrick Capturing benefits of rising gold and copper prices – record Q3 net income; annualized return on equity of ~18%(1) – dividend increased 20%(2) High quality diversified asset base – growing pro
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