Post on 29-May-2018
8/9/2019 Barrick Gold Second Quarter 2010 Results
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Second Quarter 2010 Results
Conference Call / Webcast
Second Quarter 2010 Results
Conference Call / Webcast
July 29, 2010
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Q22010HighlightsQ22010Highlights
Significant margin expansion
Record net income of $783 M ($0.79/share)
Adjusted net income of $759 M ($0.77/share)(1)
Strong operating cash flow of $1.02 B
Cortez Hills continues to exceed plan
Pueblo Viejo and Pascua-Lama advancing in linewith budget and initial production expectations
Dividend increased 20%(2)
(1) See final slide #1 (2) See final slide #6
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FirstHalf2010HighlightsFirstHalf2010Highlights
467
446
H1 09 H1 10
Total
Cash Costs (1 )
$US/oz
3,621
.00
4,005
.00
H1 09 H1 10
Gold
ProductionMoz
11% 467
446
3.624.01
H1 09 H1 10
(1) See final slide #1
H1 09 H1 101 300
378
346
H1 09 H1 10
Net
Cash Costs (1 )
$US/oz
8%378
346
H1 09 H1 10300
4%
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AustraliaPacific
North America
SouthAmerica
AfricanBarrick
Q22010ProductionQ22010Production
Other 9
132
482
566
755
1.94millionounces
ounces thousands
Total cash costs $457/oz(1)
Net cash costs $358/oz(1)
(1) See final slide #1
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ImpactofLowCostMinesImpactofLowCostMines
Three new low costmines in three years
(1) See final slide #2 (2) See final slide #4
~2.4million
low cost
ounces(2)
CORTEZ
HILLS(1)
Q1 2010
PUEBLOVIEJO
Q4 2011
PASCUA-LAMA
Q1 2013
+ CERRO CASALE
REKO DIQ+
DONLIN CREEK+
KABANGANickel+
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CortezHills SuccessfulRampupCortezHills SuccessfulRampup
Expected to exceed original guidance of 1.08-1.12 Mozat total cash costs of $295-$315/oz in 2010(1,2)
569,000 ounces produced in first half on higher open pitand underground grades
Supplementary EIS and ROD expected to be completed
and issued by year-end
9
Mining the Open Pit
(1) See final slide #2 (2) See final slide #1
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PuebloViejoProjectUpdatePuebloViejoProjectUpdate
Initial production expected in Q4 2011
In line with $3.0B pre-production capital budget(1)
(100%) 625-675 Koz to Barrick at total cash costs of
$250-$275/oz(1,2)
~70% of capital committed Construction over 25% complete
(1) See final slide #2 (2) See final slide #1 10
Autoclave Transport in Dominican Republic
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PascuaLamaProjectUpdatePascuaLamaProjectUpdate
Initial productionexpected in Q1 2013
750-800 Koz at total cashcosts of $20-$50/oz(1,2)
In line with $2.8-$3.0B
pre-production capitalbudget(1)
over 1/3 of capital
committed Detailed engineering
nearing completion
(1) See final slide #2 (2) See final slide #1 11
Primary crusher platform excavation
Cut-off wall platform excavation
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CerroCasaleProjectUpdateCerroCasaleProjectUpdate
First full 5 years (75%):
750-825 K oz gold and
170-190 M lbs copperTotal cash costs of
$240-$260/oz(1,2)
~$4.2 B pre-productioncapital budget (100%)(1)
~20 year mine life
EPCM contractorsselected; basic
engineering underway12(1) See final slide #2 (2) See final slide #1
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Reko Diq ProjectUpdateReko Diq ProjectUpdate
Feasibility and ESIA being finalized
~$3.3 B pre-production capital budget (100%)(1)
First full 5 years (37.5%): ~100,000 oz gold at total cash costs of $420-450/oz(1,2)
150-160 M lbs copper at total cash costs of $1.00-1.10/lb(1,2)
13(1) See final slide #2 (2) See final slide #2
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Donlin CreekProjectUpdateDonlin CreekProjectUpdate
Evaluating natural gasoption
Scoping studycompleted withpositive results
Feasibility study withnatural gas option
underway Results expected in
Q2 2011
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0.5Inferred
1.1M&I
Reko Diq, Pakistan (37.5%)
Feasibility and ESIAbeing finalized
Donlin Creek, Alaska (50%) Results of gas pipeline option
expected in Q2 2011
Kabanga, Tanzania (50%)
One of the worlds largestundeveloped nickel sulfide
deposits
ProjectsinFeasibilityProjectsinFeasibility
6.4Inferred
9.5M&I
GoldBarricks shareof resources(1)
M oz
CopperBarricks shareof resources(1)
B lbs
REKO DIQ
DONLIN CK.
Nickel
B lbs
REKO DIQ KABANGA
8.4Inferred
11.7M&I
18.4M&I
2.6Inferred
(1) See final slide #3
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187.0
0
194.00
2Q09 2Q10
Q22010FinancialResultsQ22010FinancialResults
479
748
Q1 07 Q1 08
Gold Margin (1 )
Total Cash Cost Basis
$US/oz
56%479
748
Q2 09 Q2 10
(1) See final slide #1
571
847
Q1 07 Q1 08
Gold Margin (1 )
Net Cash Cost Basis
$US/oz
48%571
847
Q2 09 Q2 10
Gold
ProductionMoz
4%1.871.94
Q2 09 Q2 101
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Q22010RecordFinancialResultsQ22010RecordFinancialResults
718
1019
Q2 09 Q2 10
Operating
Cash FlowUS$M
Net IncomeUS$M
Adjusted
Net Income(1)
US$M
42%
59% 718
1,019
783 759
431
Q2 09 Q2 10
76%
(1) See final slide #1
492
Q2 09 Q2 10 Q2 09 Q2 10
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2010Outlook2010Outlook
higher production andlower costs expected in 2010
(1) See final slide #1
ouncesmillions
$466
$425-$455
2009 2010E6.5
2009
7.4
2010E
7.6-8.0
400
US$/oz
Total cash costs(1)
Net of AfricanBarrick Gold IPO
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Total Cash Costs(1) vs Gold PricesUS$ per ounce
~1150 Average
MarginExpansionMarginExpansion
(1) See final slide #1
985
225280
345
443
214
265276
429
519
05 06 07 08 09
439
545621
872
466 425-
455
10E
Total Cash Cost
695-
725Avg. Realized Price(1)
Margin (1)
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Total Cash Costs(1) vs Gold PricesUS$ per ounce
Net Cash Costs(1) vs Gold PricesUS$ per ounce
MarginExpansionMarginExpansion
Net Cash Cost(2)
(1) See final slide #1 (2) See final slide #5
225 201 228
337
344393
535564
05 06 07 08
439
545 621
872
Avg. Realized Price(1)
214
985
09 10E
363
622
345-375
775-
805
~1150 Average
Margin (1)
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StrongFinancialPositionStrongFinancialPosition
Industrys Highest Rated Balance Sheet
Cash Balance
Undrawn Line of Credit
Strong First Half Operating Cash Flow
Dividend Increase
A-RatedA-Rated
$3.9B$3.9B
$1.5B$1.5B
$2.1B$2.1B
All figures as of June 30, 2010
20%20%
d d
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DividendIncreaseDividendIncrease
Semi-Annual DividendsUS$ per share / Record Date
Quarterly Dividend(1)
US$ per share / Record Date
20
12
2006 2007 2008 2009 2010
11 11
15 15
20 20 20 20 Represents20% increase
Represents118% increase
in last 5 years
May Nov May Nov May Nov May Nov May Aug
(1) See final slide #6
l k ll h ldO l k B lli h G ld
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Outlook BullishonGoldOutlook BullishonGold
Price supportive macroeconomic environment: monetary reflation (high liquidity + low interest rates)
fiscal policies & sovereign debt concerns
trade & current account imbalances
Growth in investment demand
Central banks become net buyers excessive global FX reserves
Mine supply expected to contract Scarcity value
I Cl iI Cl i
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InClosingInClosing
Record Q2 net income
On track to deliver higher production at lower cashcosts in 2010
Cortez Hills performing above expectations
Pueblo Viejo and Pascua-Lama advancing on budget
and in line with initial production expectations Positive outlook for gold and exceptional leverage to
the gold price industrys largest unhedged production and reserves
Focused on increasing NAV and metal exposure per
share Returning value to shareholders
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