Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Q2 2011 Earnings Presentation
18 slides from Barrick Mining's earnings presentation, 2011
Slide 1: Building Value in Everything We Do
Building Value in Everything We Do Second Quarter 2011 Results Conference Call / Webcast 1 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 performanc
Slide 2: Second Quarter Highlights
Q2 2011 Results Aaron Regent Jamie Sokalsky Peter Kinver Kelvin Dushnisky Rob Krcmarov President and CEO Executive Vice President Executive Vice President Executive Vice President Senior Vice President and CFO and COO Corporate & Legal Affairs Global Exploration 3 Second Quarter Highlights Metal pri
Slide 3: Q2 Operating Results; Pueblo Viejo In Construction
Q2 Operating Results ounces thousands North America 923 African 1.98 Barrick million 127 ounces 463 453 South America Australia Other 11 Pacific Total cash costs $445/oz(1) Net cash costs $338/oz(1) (1) See final slide #1 5 Pueblo Viejo IN CONSTRUCTION Remediation work stemming from damage to the ta
Slide 4: Pueblo Viejo Cash Flow Potential and Construction
Pueblo Viejo CASH FLOW POTENTIAL Barrick’s share Since the construction decision in of EBITDA February 2008, Barrick’s share of US$B ~0.9 average annual EBITDA for Pueblo Viejo has increased 125% to ~$900 M(1) at today’s prices from 125% ~$400 M(2) Investment to EBITDA ratio of ~0.4 ~2.5x Feb 2008 C
Slide 5: Pascua-Lama In Construction; Cash Flow Potential
Pascua-Lama IN CONSTRUCTION 2009 feasibility capital cost estimate impacted: ~ 50% by consumable inputs and labor cost inflation and stronger Chilean peso ~ 35% by re-estimations of materials required ~ 15% by increased costs to maintain the schedule given lower than expected productivity Expected p
Slide 6: Pascua-Lama In Construction; Cerro Casale Status
Pascua-Lama IN CONSTRUCTION Process Plant Construction Engineering design ~90% in Argentina complete In Chile, +80% complete on earthworks, truck shop platform completed and work advanced on Tunnel progress road construction to the Pascua pit from Chile In Argentina, platforms for the conveyor porta
Slide 7: Projects In Feasibility; Aus Pacific Integrating Equinox
Projects IN FEASIBILITY Donlin Gold, Alaska (50%) Barrick’s share of resources(1) Potential to be 1 M oz producer (100%) Gold Copper Nickel Gas pipeline option results expected in H2 2011 M oz B lbs B lbs Reko Diq, Pakistan (37.5%) 14.6 8.4 0.6 Feasibility and ESIA completed Inferred Inferred Inferr
Slide 8: Equinox Investment Considerations; Lumwana Adding Value
Equinox INVESTMENT CONSIDERATIONS Unique opportunity to acquire large, long life mine with significant expansion and resource growth potential Provides another source of long term cash flow Provides a major presence in one of the most prolific copper regions in the world Improves copper leverage whi
Slide 9: Lumwana Status; Lumwana Adding Value
Lumwana STATUS June 1-Dec. 31 expected copper production of 155-175 Mlbs at total cash costs of $1.75-$1.95/lb(1) 2011 cash costs impacted by plant availability, lower grades due to dilution, higher costs related to currency, labor and power Expected copper production of ~300 Mlbs on an annualized b
Slide 10: Lumwana
Lumwana Regional Exploration Targets(1) DETAIL NEXT (1) See final slide #6 22 Lumwana Plan View Chimiwungo Pit + Potential 1 Kilometre Mutoma 23
Slide 11: Jabal Sayid In Construction
Jabal Sayid IN CONSTRUCTION First production expected in H2 2012 Expected capital costs of ~$400 M of which $275 M remains to be spent Expected average annual production of 100-130 Mlbs in first full 5 years of operation Good potential for material extensions to known deposits and new discoveries 24
Slide 12: Q2 2011 Strong Financial Results
Q2 2011 STRONG FINANCIAL RESULTS Realized Gold Gold Margin(1) Gold Margin(1) Price(1) Total Cash Cost Basis Net Cash Cost Basis $US/oz 1,513 $US/oz $US/oz 1,175 1175 1,068 1,205 26% 903 30% 903 804 33% Q2 10 Q2 11 Q2 10 Q2 11 Q2 10 2009 Q2 11 2010 (1) See final slide #1 26 Q2 2011 STRONG FINANCIAL R
Slide 13: Q2 2011 Strong Financial Results; Margin Expansion
Q2 2011 STRONG FINANCIAL RESULTS Operating Adjusted Operating Cash Flow Cash Flow(1) 1,358 US$M US$M 17% 1,108 1,127 Income tax payments 1108 1127 420 related to 2010 38% 938 938 938 690 690 Q2 10 Q2 11 Q2 10 Q2 11 Q2 11 (1) See final slide #1 28 Margin Expansion Total Cash Margins(1) Net Cash Margi
Slide 14: Leverage to Gold; Return on Shareholders' Equity
Leverage to Gold Barrick EPS & CFPS vs Gold Returns (US$) ( = adjusted) 600% Barrick’s adjusted net 500% earnings and cash flow (1) growth has significantly 400% outpaced the rise in gold prices over the 300% past 6 years 200% 100% (1) See final slide #1. All EPS figures are adjusted except 0% Dec ‘
Slide 15: Outlook Bullish on Gold
Outlook BULLISH ON GOLD Sovereign debt concerns Fiscal and monetary reflation – disappointing US economic data – low U.S. real interest rates – weak US dollar Inflation in emerging markets Central banks are net buyers Excessive global FX reserves Scarcity value 33 Outlook BULLISH ON GOLD Central Ban
Slide 16: Outlook Positive on Copper; Investment Case for Barrick
Outlook POSITIVE ON COPPER Favourable supply and demand fundamentals in global copper markets expected to remain for the foreseeable future Demand to be driven by the emerging markets including India and China Anticipate the industry will continue to be challenged to provide a supply response given:
Slide 17: Investment Case for Barrick
Investment Case for Barrick Two world class projects nearing production and expected to generate combined annual EBITDA at today’s prices of ~$2.8 B and lower overall cash costs by ~20%(1) Equinox assets add an additional source of significant long term cash flow Deep pipeline of world-class project
Slide 18: Footnotes
Footnotes 1. Adjusted net earnings, adjusted operating cash flow, return on equity, EBITDA, Net cash costs per ounce, net cash margin per ounce, total cash costs per ounce, total cash margin per ounce, total cash costs per pound, copper cash margins per pound and average realized price per ounce/pou