Barrick Mining Corporation · TSX:ABX

Barrick Mining — Barrick Gold — BMO Capital Markets 2011 Global Metals and Mining Conference

23 slides from Barrick Mining's conference presentation, Feb 28, 2011

  1. Slide 1: The Gold Industry Leader

    The Gold Industry Leader BMO Capital Markets 2011 Global Metals and Mining Conference Hollywood, Florida – February 28, 2011

  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

  3. Slide 3: Global Footprint

    Global Footprint 2010 P&P Reserves North America North America 2011E Production 41% Australia Africa 9% Pacific North America 11% 44% South America 39% Africa 7% Australia Pacific South Africa 25% America South 24% America Australia Pacific Mine Project 1 Key Priorities and Progress ƒ Strong gold pr

  4. Slide 4: Key Priorities and Progress

    Key Priorities and Progress ƒ Progress low cost, advanced projects – completed Cortez Hills on time and budget; expanded Cortez operation exceeded 2010 guidance – construction of Pueblo Viejo and Pascua-Lama continues ƒ Grow reserves and resources through disciplined corporate development and explor

  5. Slide 5: 2010 Record Financial Results

    2010 Results Gold Total Net Production Cash Costs(1) Cash Costs(1) Moz $US/oz 2% $US/oz 7.77 7.77 464 7.40 7.40 5% 464 457 457 5% 360 341 5 300 300 H1 09 H1 10 2009 H1 09 2010 H1 10 2009 2010 2009 2010 (1) See final slide #1 5 2010 Record Financial Results Realized Gold Gold Margin(1) Gold Margin(1)

  6. Slide 6: 2010 Record Financial Results

    2010 Record Financial Results Net Income Adjusted Adjusted Operating US$M Net Income(1) Cash Flow(1) US$M US$M 4,783 4783 65% 3,274 3,279 2,899 2899 81% 1,810 2009 2010 2009 2010 2009 Q2 09 2010 Q2 10 -4,274 Hedge Book Elimination (1) See final slide #1 7 Margin Expansion Current Spot Price ~$1,400

  7. Slide 7: Leverage to Gold

    Leverage to Gold Barrick EPS & CFPS vs Gold ƒ 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 6 years 300% 200% 100% (1) See final slide #1. All EPS figures are adjusted except 0% Dec 04

  8. Slide 8: Strong Financial Position

    Strong Financial Position Gold Industry’s Highest Rated A-Rated Balance Sheet $4.0B Cash Balance(1) Strong 2010 Adjusted $4.8B Operating Cash Flow(2) $2.5B Low Net Debt(2) (1) As of Dec. 31, 2010 (2) See final slide #1 11 Barrick’s Strategy Focused on adding value… ƒ Increase gold and copper reserve

  9. Slide 9: Global Exploration Program

    Global Exploration Program 13 Gold Reserves and Resources(1)(1) ounces millions 37.2 ƒ 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 ƒ Grew M&I 35.0 resources by 24% 138.5 139.8 139.8 12.4 123.1 124.6 P&P ƒ Grew inferred 17.

  10. Slide 10: History of Reserve Growth

    History of Reserve Growth THROUGH ACQUISITION AND EXPLORATION Proven and Probable – millions of ounces ~140 (1) 140 TOTAL EXPLORA- TION 20 21 Moz 1990 109 110 Divestitures 2010 TOTAL TOTAL MINED ACQUIRED (1) See final slide #3 15 2011 Exploration Program(1) $320-340M 50% 43% North America African Ba

  11. Slide 11: Development Projects

    Development Projects 17 Cortez NEVADA 18

  12. Slide 12: Cortez Hills - Exceeds Expectations

    Cortez Hills ‐ Exceeds Expectations ƒ Cortez Hills built on schedule Exploration Drilling Underground and budget ƒ Expanded Cortez operation exceeded 2010 guidance producing 1.14 Moz at total cash costs of $312/oz(1) ƒ 2011 guidance – 1.30-1.45 Moz at total cash costs of $235-$265/oz ƒ Record of Dec

  13. Slide 13: Pueblo Viejo Project Update

    Pueblo Viejo DOMINICAN REP. 21 Pueblo Viejo Project Update Autoclave Plant Construction ƒ Commissioning expected in Q4 2011 and initial production in Q1 2012 – construction ~50% complete ƒ Pre-production capital expected to be ~$3.3-$3.5B (100% basis)(1) – ~75% of capital committed ƒ 625-675 Koz to

  14. Slide 14: Pueblo Viejo Value Added

    Pueblo Viejo VALUE ADDED 2006 2011 ƒ 13.4 M oz of reserves (1) ƒ 23.7 M oz of reserves (1) ƒ Modest economics ƒ Robust economics ƒ Technical challenges, ƒ Improved flowsheet, low recoveries increased recoveries – Au: 92% – Au: 92% – Ag: 5% – Ag: 87% – Cu: 0% – Cu: 79% FUTURE VALUE CREATION OPPORTUNI

  15. Slide 15: Pascua-Lama Project Update

    Pascua‐Lama Project Update Process Plant Construction ƒ Initial production expected in Argentina in H1 2013 ƒ Detailed engineering and procurement over 90% complete Tunnel progress from Chile ƒ Pre-production capital expected to be ~$3.3-$3.6B(1) – ~40% of capital committed Barriales camp in Chile ƒ

  16. Slide 16: Cerro Casale Project Update

    Cerro Casale Project Update ƒ Capital cost review underway; update by end of Q2 ƒ Barrick’s 75% share of production in 1st full 5 years: – 750-825 K oz gold and 170-190 M lbs copper at total cash costs of $240-$260/oz(1,2) ƒ A $0.25/lb change in copper price results in ~$50/oz impact on total cash c

  17. Slide 17: Donlin Creek Highlights

    Donlin Creek ALASKA 29 Donlin Creek HIGHLIGHTS ƒ One of the largest undeveloped gold deposits in the world ƒ 2010 M&I resources: 38.7 M oz (100% basis)(1) ƒ Potential to be a +1 M oz/year producer (100% basis) at attractive operating costs ƒ Long life – currently +25 years ƒ Feasibility study on nat

  18. Slide 18: Donlin Creek Value Added

    Donlin Creek VALUE ADDED 2006 2011 ƒ 14.8 M oz of resources (1) ƒ 38.7 M oz of resources (1) ƒ Early stage property ƒ Feasibility completed – evaluating opportunities to enhance project economics FUTURE VALUE CREATION OPPORTUNITIES ƒ Natural gas pipeline to replace HFO ƒ Substantial resource upside

  19. Slide 19: Internal Growth Opportunities

    Internal Growth Opportunities Turquoise Ridge JV in Nevada 33 Turquoise Ridge CREATING VALUE High grade underground operation ƒ Current production of 150-200 K oz/yr(1); 2010 reserve of 5.6 M oz, M&I resources of 11.2 Moz and inferred resources of 6.9 Moz (100% basis)(2) ƒ Significant exploration po

  20. Slide 20: Turquoise Ridge Open Pit

    Turquoise Ridge Open Pit 5.6 M oz UG reserve orebody conceptual open pit orebody 35 El Indio Belt SUPERGIANT POTENTIAL Collahuasi ƒ El Indio Belt is the last remaining segment of Cu-Au-Mo porphyry Abra Chuquicamata Zaldivar belts not exhaustively explored in Escondida Chile-Argentina Salvador ƒ Barr

  21. Slide 21: Corporate Social Responsibility

    Corporate Social Responsibility ƒ CSR is a Barrick-wide business strategy ƒ Committed to strengthening our CSR performance to reduce risk – Joined the Voluntary Principles on Security and Human Rights – Establishment of an external CSR Advisory Board – New independent Director will be appointed to t

  22. Slide 22: Outlook - Bullish on Gold

    Outlook ‐ Bullish on Gold ƒ Diversifying Role – up 440% over past 10 yrs (S&P – up 5%)(1) ƒ Price supportive macroeconomic environment: – quantitative easing – fiscal policies & sovereign debt concerns – trade & current account imbalances ƒ Excessive global FX reserves ƒ Central banks become net buy

  23. Slide 23: Conclusion

    Conclusion Investment Case for Gold ƒ Strong fundamentals Investment Case for Barrick ƒ Capturing benefits of rising gold and copper prices – record 2010 net income and cash flow – return on equity of ~19%(1) – dividend increased 20%(2) ƒ High quality diversified asset base – expanding margins – lar

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