Mali
Impact of the gold price on exploration and production
1JMP Conference November 2019
Cautionary Statement on Forward Looking Information
Certain information contained in this presentation, including any information as to Barrick’s strategy, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “guidance”, “continues”, ”expected”, “potential”,“ongoing”, “prospective”, “opportunities”, “proposed”, “target”, “update”, “plan” and “create” and similar expressions identify forward-looking statements. In particular, thispresentation contains forward-looking statements including, without limitation, with respect to: forward-looking production guidance; estimates of future cost of sales per ouncefor gold, total cash costs per ounce, and all-in-sustaining costs per ounce; cash flow forecasts; projected capital, operating and exploration expenditure; planned infrastructureupgrades; planned training and skills development programs; the potential for multiple zones of mineralization to be extended and combined at the Loulo-Gounkoto complex;mineral reserve and mineral resource replacement at the Loulo-Gounkoto complex; permitting applications at Massawa; closure plans for Morila; and future investments in Maliincluding in community projects and disease prevention programs.
Forward-looking statements are necessarily based upon a number of estimates and assumptions; including material estimates and assumptions related to the factors set forthbelow that, while considered reasonable by Barrick as at the date of this press release in light of management’s experience and perception of current conditions and expecteddevelopments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actualresults to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factorsinclude, but are not limited to: fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity);the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; diminishing quantities orgrades of reserves; increased costs, delays, suspensions, and technical challenges associated with the construction of capital projects; operating or technical difficulties inconnection with mining or development activities, including geotechnical challenges, and disruptions in the maintenance or provision of required infrastructure and informationtechnology systems; changes in national and local government legislation, taxation, controls, or regulations and/or changes in the administration of laws, policies, and practices,expropriation or nationalization of property and political or economic developments in Mali; lack of certainty with respect to foreign legal systems, corruption, and other factorsthat are inconsistent with the rule of law; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; timing of receipt of, or failure to comply with, necessarypermits and approvals; failure to comply with environmental and health and safety laws and regulations; litigation and legal and administrative proceedings; risks associatedwith illegal and artisanal mining; the risks associated with infectious diseases presenting as major health issues; damage to Barrick’s reputation due to the actual or perceivedoccurrence of any number of events, including negative publicity with respect to the Barrick’s handling of environmental matters or dealings with community groups, whethertrue or not; the speculative nature of mineral exploration and development; the impact of global liquidity and credit availability on the timing of cash flows and the values ofassets and liabilities based on projected future cash flows; the impact of inflation; fluctuations in the currency markets; contests over title to properties, particularly title toundeveloped properties, or over access to water, power, and other required infrastructure; employee relations including loss of key employees; increased costs and physicalrisks, including extreme weather events and resource shortages, related to climate change; and availability and increased costs associated with mining inputs and labor. Inaddition, there are risks and hazards associated with the business of mineral exploration, development, and mining, including environmental hazards, industrial accidents,unusual or unexpected formations, pressures, cave-ins, flooding, and gold bullion, copper cathode, or gold or copper concentrate losses (and the risk of inadequate insurance,or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-lookingstatements made in this presentation are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on filewith the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements, and the risksthat may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this presentation.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except asrequired by applicable law.
2
The leading African gold miner…
Gold production Projects Barrick Tanzania Copper production
Massawa (83.25%)
Kibali (45%)
Jabal Sayid (50%)
Lumwana
Loulo-Gounkoto (80%)
Morila (40%)
Tongon (89.7%)
North Marai
Bulyanhului
Buzwagii
West Africa…two decades of delivery20142013
Production exceeds 1Moz
LTIFR down 18%
Record productionMorila mine life
extended
2012Loulo Complex
record production
2015 2016+1.25Moz
group production
2017Gounkotosuper pit
starts 2019
+1.2Moz group
production
Randgold – Barrickmerger
1996RRL acquired
BHP Mali assets including Syama
Yalea discoveryMorila discoveryIPO raises $83m
2004Loulo
construction starts
2005Loulopours
first gold
Loulo UG feasibility approved
2005Loulo UG
mine starts
2006
Tongon stake at 89%Market Cap at $3b
Join FTSE 100
2008
Record ProductionMarket cap at $11bJoin NASDAQ 100
2011Tongon first goldGara UG starts
Gounkoto mine build starts
2010
1997
2000Morilapours
first gold
2003Syamasold to
Resolute
Massawadiscovery
2007Gounkoto discovery
Kibali acquiredstake at 45%
2009Gounkotofirst gold
2011
Randgoldincorporated
1995
2001Syama
on care and maintenance
Mali Gold Production…
5
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Production 2018 Production 2019
Somifi - SASomika - SAYatela - SAFaboula Gold - SANampala - SAMetedia - SARLMorila - SA1Komana - SASemico - SASemos - SASomisy - SAFekola - SASomilo-Gounkoto - SA1
Ounces 000
FinkoloEndeavourAngloGold AshantiWassalouRobexMetediaBarrickHummingbirdBCMAngloGold AshantiResoluteB2GoldBarrick
Source: Public information, DNGM Mali
Legacy Randgold production profile1
from 1998 vs Gold Price…
0
200
400
600
800
1000
1200
1400
1600
1800
0
0,2
0,4
0,6
0,8
1
1,2
1,4Million ounces US$/oz
Loulo-Gounkoto complex…actual and forecast production
0
1
2
0
100
200
300
400
500
600
700
800
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Oz actual Oz forecast
Production Oz 000
The World…in CRISIS? or ON THE MEND?
8
Trump and nationalism –illegal immigration
BREXIT and Europeanpopulism – illegalimmigration
Canada and Australia
Religious extremism
Korean crisis
South America – warlordsand crime mixed withpopulism
China – a new world player
The Russian Bear
Middle East conflictand emerging new Saudi Arabia
The Arab Spring countries’ dilemma
Global competition and Africa having to look after itself
The Mining Sector Cycle…
Source: Scotia, Global Banking and Markets
Worldwide exploration budgets by country… The largest portion of available exploration funds are now being spent in South America (30%) and North America (28%) with only 14% allocated to Africa (6% to West Africa and 2% in the DRC)
Source: S&P Global Market Intelligence, Data as of Nov 15, 2017
88 other countries and four regional allocations account for 10.1%
1535 companies’ budgets totalling US$7.05 billion
African exploration budgets by stage of development…2008 to 2017
African exploration budgets followed the global trend Greenfields exploration is now lower than Late Stage and Minesite exploration as mining companies attempt to preserve their cash resources
050100150200250300350400450
0
200
400
600
800
1000
1200
1400
1600
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
No. of Companies Grass Roots Late Stage Minesite
AfricaUS$ million No. of Companies
Grass Roots
MinesiteLate Stage
Exploration is not replacing gold produced -running average gold in discoveries & exploration budgets by year…1995 - 2017
Despite significant exploration expenditure during the period from 2010 to 2012, real discoveries have declined since 2009, severely impacting future gold production
Major gold discoveries Moz US$ million US$/oz
Source: SNL Metals & Mining
01 0002 0003 0004 0005 0006 0007 0008 0009 00010 000
0
20
40
60
80
100
120
140
160
180
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Gold discoveries Moz Gold Production MozGold price (US$/oz) Exploration budgets (US$M)
0,5
1,0
1,5
2,0
2,5
3,0
3,5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Reserve Grade Head Grade
Reserve grade vs mining head gradeGold grade g/t
Source: Scotia Bank
Why no growth in gold production?… is the industry reserve being plundered?
Reserves by major gold companies have declined 26% since 2012 – now below 2007 levels
700
830 849898
959 967
860818
766 744713
0
100
200
300
400
500
600
700
800
900
1000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Moz Au
Agnico Eagle, AngloGold Ashanti, Barrick, China National, Freeport McMoRan, Gold Fields, Goldcorp, Harmony, Kinross, Navoi Mining & Metallurgy Combinant, Newcrest, Newmont, Nord Gold, PJSC Polyus, Polymetal International, Randgold Resources, Shandong Gold
Source: S&P Global Market Intelligence
Global gold mine supply…2019 - 2029Industry facing production precipiceVery few companies able to deliver value growth in this environment
-
10
20
30
40
50
60
70
80
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029Production Committed Probable Possible Concept Others
Source: AME Research. See Endnote 2 for further information on each category.
Moz
Examples of how mining industry is a springboard for country’s development…
Governance
International Support
Private Sector
Natural Resources
Regional Integration
…mining can play a critical role
Traditional industries
Services
Manufactur-ing
Tourism
Benefication
Infrastructure
Low skilledLow growthLow value
High skilledGlobally competitive
Growth potential
Economic Diversification
Mining sectorsphere of influence
Loulo-Gounkoto community development…>$6.4m invested to date; $29.6m patent levyinvested in communities
17
Health 10%
Education18%
Potable Water
7%Agriculture
15%
Economic Projects
50%
Contribution to Malian Economy
Barrick...contribution to Mali economyBarrick/Randgold operations have contributed approximately US$ 7.0 billion to the Malian economyin the form of taxes, royalties, salaries and payments to local suppliers in the 23 last years
GOUNKOTOUS$ 1.1 Bn
LOULOUS$ 3.6 Bn
MORILAUS$ 2.3 Bn
% Contribution to Malian GDP
0%1%2%3%4%5%6%7%8%9%
10%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Loulo Gounkoto Morila
Barrick…Dividends, Taxes and Royalties paid to Mali
Barrick/Randgold operated mines have paid approximately US$ 2.7 billion in the form of Dividends, Taxes and Royalties to the State
over 23 years
DIVIDENDS, TAXES AND ROYALTIES TO
THE STATEUS$ 2.7 billion
DIVIDENDS TO BARRICK
US$ 1.0 billion
Endnotes…
1. At 100%.
2. AME Research category definitions:
Production – A site which is in commercial operation.
Committed – AME believes these projects will come online by their planned start date with the highest degree of probability. In AME's assessment, this category contains projects that are already completed and awaitingcommissioning, or those projects that are in a sufficiently advanced stage of construction, such that it considers it uneconomic to discontinue construction. AME has also included some projects that fall outside of thesetwo categories, as these projects are owned by major mining companies or have strong financial backing.
Probable – AME believes these projects will come online with the next highest degree of probability. AME considers that these projects are very likely to begin production, but are differentiated by those in the “Committed”category because the degree of certainty is reduced by key factors, which include, but are not limited to: current stage of construction/development, location of project, owner/financiers and product mix.
Possible – AME regards these projects to have sufficiently strong fundamentals to consider that they will possibly begin production by the end of AME's s long-term forecast period, but there remains some uncertainty asto aspects of the project.
Concept – AME considers it is unable to provide any concrete assessment of the timing of these project start dates or capacity with any great detail without further information. The majority of these projects are unlikely toproceed to development.
Other – AME has not assigned a likelihood to certain assets in the “Care & Maintenance” and “On Hold” status categories because they are unable to make a definitive judgment on their likelihood of coming online. We’reincorporated both into a separate “Other” category so as to be able to account for all assets tracked by AME, but note that estimated production of assets in these categories is not material to the full forecast.
Technical InformationThe scientific and technical information contained in this presentation has been reviewed and approved by: Rodney Quick, Mineral Resource Management and Evaluation Executive of Barrick and Simon Bottoms, SVP,Mineral Resources Manager: Africa and Middle East of Barrick, each a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
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