Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Q1 2015 Earnings Presentation
24 slides from Barrick Mining's earnings presentation, Apr 28, 2015
Slide 1: First Quarter 2015 Results
First Quarter 2015 Results Conference Call / Webcast | April 28, 2015
Slide 2: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain information contained or incorporated by reference in this presentation, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements". All statements, o
Slide 3: First Quarter 2015 Results
First Quarter 2015 Results Kelvin Dushnisky Jim Gowans Shaun Usmar Co-President Co-President Senior Executive Vice President and CFO
Slide 4: Q1 2015 Highlights
Q1 2015 Highlights Q1 production and costs in line with plan 2015 gold guidance on track for production of 6.2-6.6 Moz at AISC of $860-$895/ounce1,2 Improved 2015 copper operating guidance to reflect ongoing operations at Lumwana Debt reduction target of at least $3B in 2015 with asset sales
Slide 5: Q1 2015 Highlights
Q1 2015 Highlights Identified $200M in capex reductions to date Mine-by-mine review by expert teams identifying significant value creation opportunities Announcing significant gold discovery known as Alturas on Chile’s prolific El Indio belt Annual gold production expected to exceed 6 Moz in
Slide 6: Restoring a Strong Balance Sheet
Restoring a Strong Balance Sheet Returned to a lean, decentralized operating model Maximizing Free Cash Targeted G&A cuts of $30M in 2015 & $70M in 2016 1 Flow Initial capital review led to $200M capex savings Expect positive FCF in 2015 at current gold prices 2,3 Disciplined Non-Core Deta
Slide 7: Restoring a Strong Balance Sheet
Restoring a Strong Balance Sheet Disciplined non-core asset sales - Value of other gold and copper assets can be leveraged to cover debt reduction target Core mines Other mines1 Copper Cortez Bald Mountain Zaldívar Goldstrike Cowal Lumwana Golden Sunlight Lagunas Norte 4.0 2.3 Hemlo Jabal Sayid Pueb
Slide 8: Applying Strict Capital Discipline
Applying Strict Capital Discipline Capital allocation Overall portfolio must Available Capital deliver ROIC of 10-15% Current Portfolio New projects must Existing Growth meet 15% ROIC hurdle Mines Projects Existing mines also 15% compete for capital and Return on Invested must meet hurdle Capi
Slide 9: Reducing Capital Intensity
Reducing Capital Intensity Total Capex ($ Billions) Re-assessing 2015-2016 2.2 -7% capex budgets -11% $200M in capex 1.9- reductions identified 2.2 1.8- 2.1 Capital intensity decreased by ~$30/oz1 Further reductions expected Working towards a sustainable capital base 2014 2015E 2015E (actu
Slide 10: Maximizing Free Cash Flow
Maximizing Free Cash Flow Execution Underway Actions Implemented a decentralized model: Pursuing G&A savings target of $30M in 2015 G&A and annualized savings of $70M in 2016 Capex Identified $200M of capex reductions; further reductions expected Incorporating opportunities from Value Realization re
Slide 11: Strong Liquidity
Strong Liquidity Modest debt repayment with <$0.9B due by 2017 $2.3B in cash1,2 and $4.0B undrawn credit facility Scheduled Debt Repayments to 20182 Cash Position 2.0 $2.3B 1.5 <$0.9B 1.0 0.5 $4.0B 0 Undrawn Credit Facility 2015 2016 2017 2018 1. See final slide #6 2. As of Mar. 31, 2015
Slide 12: Q1 2015 Financial and Operating Results
Q1 2015 Financial and Operating Results Met production and Q1 cost targets Gold Prod. (Moz) 1.39 2015 production 55% weighted AISC ($/oz) 927 to H2, indicated with Q4 results Copper Prod. (Mlb) 118 Costs expected to be 20% lower C1 Cash Costs1 ($/lb) 1.84 in H2 due to higher production Capex (
Slide 13: Best Assets and Regions
Best Assets and Regions Pueblo Viejo Lagunas Norte Cortez Veladero Goldstrike 13
Slide 14: Focused on Growth in the Americas
Focused on Growth in the Americas Turquoise Ridge Cortez Hills Goldrush Spring Valley 14
Slide 15: Realizing Full Potential of Portfolio
Realizing Full Potential of Portfolio Value Realization Studies Multi-disciplinary experts assessing economic potential of every mine Studies will support non- core asset sale processes Upside opportunities being factored into mine plans
Slide 16: Pueblo Viejo — Value Realization Study
Pueblo Viejo — Value Realization Study Extend mine life Processing throughput Convert 7-8 Moz resources to reserves1 Up to 10% increase by 2019 Convert plant from HFO to LNG Convert lime kilns to LNG Reduced operating costs by end of 2017 Reduced energy costs and emissions 1. See final slide #10.
Slide 17: Improving Returns and Mine Life
Improving Returns and Mine Life Cortez Underground expansion study to include higher grade oxide zone Potential to add to reserves below 3,800 ft.1 Goldstrike ~1 Moz of annual production in 2015-20172 at AISC of <$900/oz Innovative, cyanide-free TCM process ramping up in 2015 Turquoise Ridge
Slide 18: New Discovery at Alturas
BARRICK New Discovery at Alturas
Slide 19: New Discovery at Alturas
New Discovery at Alturas Chile Argentina Located on the Pascua-Lama Veladero prolific El Indio Belt in Chile Barrick Claims Primarily oxide, similar to Veladero but could be El Indio significantly higher Tambo grade Barrick Claims Alturas 20 Km
Slide 20: Alturas Exploration
Alturas Exploration NORTH SOUTH Cross section1 San Juan ARGENTINA Coquimbo CHILE Grade x Thickness (gpt-m Au)1 100 – 524 25 – 100 0.3 – 25 1. See final slide #8 and #9
Slide 21: Alturas Cross Section
Alturas Cross Section Expect initial resource at year-end1 Argentina Chile 5000 RL > 0.25 gpt Au Andesitic Cap > 1.0 gpt Au 4750 RL Breccia 4500 RL Oxidation limit 250m Dacitic host rocks 1. See final slide #8
Slide 22: Lumwana Update
Lumwana Update Zambian government’s proposed amendments include scaling back 20% open-pit royalty to 9% Lumwana able to continue operating at current prices 2015 copper production guidance increased to 480–5201 million pounds from 310–340 million pounds 1. See final slide #2
Slide 23: Rapid Transformation
Rapid Transformation Value-driving Swiftly returning Continuing to unique Barrick drive fast-paced initiatives ‘Back to the Future’ change Rigorous capital Lean, Capex reduced allocation - decentralized after initial capital specific ROIC operating model review and more thresholds Head-offic
Slide 24: Footnotes
Footnotes 1. All-in sustaining costs per ounce (“AISC”), C1 cash costs per pound, adjusted net earnings per share (“EPS”), and free cash flow (“FCF”) are non-GAAP financial performance measures with no standardized definition under IFRS. See pages 45-50 of Barrick’s First Quarter 2015 Report. 2. 201