barrick gold • second quarter 2010 results

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)



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ImpactofLowCostMinesImpactofLowCostMines

Three new low costmines in three years


~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



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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



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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


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%


492

Q2 09 Q2 10 Q2 09 Q2 10


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2010Outlook2010Outlook

higher production andlower costs expected in 2010


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


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)


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


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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barrick gold • second quarter 2010 results

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