Fourth Quarter 2011 Results and 2012 Outlook › ... › 2012 › Barrick-Q4-2011-Webcast_v001_f205dd.pdfConference Call / WebcastConference Call / Webcast – February 16 2012February

Fourth Quarter 2011 Results and 2012 Outlook

Conference Call / Webcast – February 16 2012Conference Call / Webcast February 16, 2012

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CAUTIONARY STATEMENT ON FORWARD‐LOOKING INFORMATIONCertain information contained in this presentation, including any information as to our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute"forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, "expect", "will", “anticipate”, “contemplate”, “target”, “plan”, “continue”, “budget”, “may”, “intend”, “estimate” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates andexpressions identify forward looking statements. Forward looking statements are necessarily based upon a number of estimates andassumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-lookingstatements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include but are not limited to: the impact of global liquidity and credit availability on the timing of cash flows and the values of assets andinclude, but are not limited to: the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; changes in the worldwide price of gold, copper or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets; the ability of the Company to complete or successfully integrate an announced acquisition proposal; legislative, political or economic developments in the jurisdictions in which the Company carries on business, including Zambia and Saudi Arabia; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; changes in costs and estimatesthe risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; changes in costs and estimates associated with our projects; adverse changes in our credit rating, level of indebtedness and liquidity, contests over title to properties, particularly title to undeveloped properties; the organization of our previously held African gold operations under a separate listed entity; the risks involved in the exploration, development and mining business. Certain of these factors are discussed in greater detail in the Company’s most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company 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 as required by applicable law.

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Q4 2011 Results

Aaron Regent Peter KinverJamie Sokalsky Kelvin Dushnisky Rob KrcmarovPresident and CEO Executive Vice President

and COO

Executive Vice President

and CFO

Executive Vice President

Corporate & Legal Affairs

Senior Vice President

Global Exploration

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2011 Highlights

Gold production and cost targets achieved– 7 68 Moz gold at total cash costs of $460/oz(1) or7.68 Moz gold at total cash costs of $460/oz( ) or

net cash costs of $339/oz(1)

– one of the lowest cash costs of any senior gold producer

Record earnings and cash flow– adjusted net earnings of $4.7 B(1) ($4.67/share)

dj t d ti h fl f $5 7 B(1)– adjusted operating cash flow of $5.7 B(1)

– EBITDA of $8.4 B(1)

– ROE of 22%(1)

Quarterly dividend increased by 25%(2) to $0.15/share

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$ /

(1) See final slide #1 (2) see final slide #5

2011 Highlights

Advanced construction at two world-class mines– Pueblo Viejo and Pascua-Lama first production– Pueblo Viejo and Pascua-Lama first production

expected in 2012 and 2013– ~1.5 Moz(1) of low cost production once at full capacity

Replaced gold reserves and grew resources Continued success at Red Hill/Goldrush greenfieldContinued success at Red Hill/Goldrush greenfield

discovery in Nevada– drill results continue to expand mineralization and

confirm deposits have merged

5(1) See final slide #7

2011 Highlights

Progressed project pipeline– 7 projects: Cerro Casale Donlin Gold Kabanga– 7 projects: Cerro Casale, Donlin Gold, Kabanga,

Lumwana expansion,Turquoise Ridge open pit project, Lagunas Norte and Zaldívar sulfides

Acquired long-life, producing Lumwana copper mine and Jabal Sayid copper project– significantly increased copper reserves and resources

from 2010

E h d R ibl Mi i ti Enhanced Responsible Mining practices – relisted on Dow Jones Sustainability World Index and

named to the NASDAQ Global Sustainability Index

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named to the NASDAQ Global Sustainability Index

Fourth Quarter Highlights

Gold: 1.81 Moz at total cash costs of $505/oz(1)

– $382/oz(1) on a net cash cost basis– $382/oz(1) on a net cash cost basis

Copper: 143 Mlbs at total cash costs of $1.99/lb(1)

G ld h i f $1 159/ (1) d t h Gold cash margins of $1,159/oz(1) and net cash margins of $1,282/oz(1)

Adj t d t i f $1 2 B ($1 17/ h )(1) Adjusted net earnings of $1.2 B ($1.17/share)(1)

Net earnings of $959 M ($0.96/share) Adjusted operating cash flow of $1.3 B(1)

Operating cash flow of $1.2 B

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p g

(1) See final slide #1

Q4 2011 Operating resultsNorth America761

ounces thousands

AfricanBarrick118

1.81millionounces

A t li

SouthAmerica

485 446ounces

AustraliaPacific

Other 4

Total cash costs $505/oz(1)

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Net cash costs $382/oz(1)


Pueblo Viejo IN CONSTRUCTION

First production anticipated in mid-2012– overall construction ~90% completeoverall construction 90% complete

625-675 Koz of expected average annual productionto Barrick at total cash costs of $300-$350/oz(1)

Mine construction capital of $3.6-$3.8 B(2) (100%) or $2.2-$2.3 B (Barrick’s 60% share)

85% f it l itt d– ~85% of capital committed(1) See final slide #1 and #2 (2) See final slide #2

99

Pueblo Viejo IN CONSTRUCTION

~13 Mt of ore stockpiled Oxygen plant to undergo

Oxygen Plant

Oxygen plant to undergo pre-commissioning testing in Q1 2012 Q First 2 of 4 autoclaves

pre-commissioning in Q2 2012 Transmission line

d d iconstructed and inter-connect to the grid achieved

10

achieved

10Autoclave Circuit

Pascua‐Lama IN CONSTRUCTION

Initial production expected in mid-2013

Expected gold production of 800-850 Koz/year at Expected gold production of 800-850 Koz/year at negative cash costs of $225-$275/oz(1) at $25/oz silver

Expected silver production of ~35 Moz/year(2)Expected silver production of 35 Moz/year

Previously announced pre-production capital of $4.7-$5.0B(2) (~55% of capital committed)

(1) See final slide #1 and #2 (2) See final slide #2

Mill Building Argentina

1111

Pascua‐Lama IN CONSTRUCTION

Earthworks ~95% and ~65% complete in Chile and

Process Earthworks

complete in Chile and Argentina

~40% of the concrete poured Merrill Crowe Building

at the processing facilities in Argentina

15% f th t t l t l

g

~15% of the structural steel erected

Construction camp occupancy Construction camp occupancy continues to ramp up– With full capacity of

Argentina Camp

12

10,000 beds in mid-2012

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Project Cash Flow Potential

Pascua-Lama EBITDA(1)

US$BPueblo Viejo EBITDA(1)

US$B – Barrick’s share

~1.65~0.80

146%122%

~0.7~0.4

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At $930(5) At $1,600(3,4)

May 2009

At $926(2) At $1,600(3)

Feb 2008

(1) See final slide #1 (2) See final slide #8 (3) See final slide #9 (4) Based on a silver price of $30 per ounce (5) See final slide #10

Jabal Sayid IN CONSTRUCTION

Initial production expected in H2 2012 Overall construction ~75% complete Overall construction ~75% complete Mine construction capital of ~$400 M

– ~85% of capital committedp 100-130 Mlbs of expected average annual production

at total cash costs of $1.50-$1.70/lb(1)


Crusher Process Circuit

14Tunnel progress

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Projects NEXT GENERATION

Barrick’s deep project pipeline provides

FEASIBILITY/ PERMITTING

Cerro Casale (Au/Cu) Chilepipeline provides significant future option value Kabanga (Ni) Tanzania

Donlin Gold (Au) Alaska

pPRE-FEASIBILITY

Lumwana Expansion (Cu) Zambia

Zaldívar Sulfides (Cu) Chile

Turquoise Ridge (Au) Nevada

Lagunas Norte Sulfides (Au) Peru

SCOPING

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Red Hill / Goldrush (Au) Nevada

Excellent Growth Potential

Copper ProductionSilver Production Gold Production(Mlbs) ~1,000

ZaldivarSulphides

LumwanaE pansion

(Moz) ~50(Moz) ~9.0

Pascua-Lama

451Lumwana

Expansion

Jabal Sayid7.7

PuebloViejoNet

Depletion

Zaldivar

~3

2017E(1)20112011 2016E(1)2011 2016E(1)6.0


History of Gold Reserve Growth

THROUGH ACQUISITION AND EXPLORATION Proven and Probable – millions of ounces of gold 140(1)Proven and Probable millions of ounces of gold

148TOTALEXP’N

140( )

Spent $2.5B on explorationEXP’N

Overall finding cost ~$17/oz

1990

20

20Moz1990 2011

118TOTALMINED

110TOTALACQ’D

DIVESTED

17

MINED ACQ’D


History of Reserve/Resource Growth

0 5 10 15 20 25 30

Gold reserve/resource ounces added (millions)

Donlin Gold

Cortez

Pascua-Lama

Goldstrike 56Moz

Turquoise Ridge

Veladero

Pueblo Viejo

Donlin Gold

Bulyanhulu

Lagunas Norte

Reko Diq

Turquoise Ridge

Red Hill / Goldrush

Bald Mtn

Pierina

18

S Arturo

Ruby Hill ACQUIRED ADDED

Reserves and Resources(1)

Replaced gold GoldM

CopperBlbreserves

Grew gold M&I 80 431.6

37.2 40.2Inferred

19.9Inferred

Moz Blbs

gand inferred resources

61.876.3 80.4

M&I

Increased copper reserves and 139.8 139.8 139.9

P&P

15.3M&I

9.4 9.1

resourcesP&P

12.9 13.0

6 1 6 5

12.7P&P

19(1) At Dec. 30, 2011. See final slide #6

09 10 116.1 6.509 10 11

2012 Exploration Program(1)

North America

North America45%

AfricaAustraliaPacific

Africa 5%

45%

CopperAfrica

Australia

SouthAmerica

SouthAmerica

10%

20%pp

20%Copper20%

ProjectMine

2012 exploration budget of $450-$490M

AustraliaPacific

20

p g $ $reflecting 2011 success


Red Hill / Goldrush Discovery

Gold Acres World-class mines and long

discovery history Red Hill-Goldrush Discovery

CORTEZ PIPELINE

C o r t e zM o u n t a i n s

C r e s c e n t Va l l e y

Red Hill-Goldrush Discovery Potential for more discoveries

Cortez Pits

M o u n t a i n s

New Discovery

Horse CanyonCORTEZ HILLS

Mineralized Deposit

Current Producer

Former Producer

RED HILL

GOLDRUSH

210 mi 2 4 6 8 10

ET Blue

< 5 o ft

Grade x Thickness

Mineralized FootprintMineralized Footprintmudstone &

siltstone

Red Hill – GoldrushUpdated Resource

< 5 oz-ft

5 -10 oz-ft

10-20 oz-ft

20-50 oz-ft

+ 50 oz ft

p Doubled Resource

+ 50 oz-ft

RED HILL Red Hill – Goldrush(1)

1.3Moz Indicated

V l i

5.7Moz Inferred2011 EOY

Resource Footprint

VolcanicCover RocksAlluvial Cover Connected Red Hill

with Goldrush

NNNNNNNNNNNNNNNNNNNNNNNNN

2011 EOY Resource Footprint

GOLDRUSH

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0 2,000

Feet0 1,000Meters


GoldrushGoldrush ComplexComplexA

90ft @ 0.15 opt

80ft @ 0.16 opt

OPENOPEN 20ft @ 1.18 opt

Step out drill results north of Red Hill show system is still

OPEN

120ft @ 0 32 opt

show system is still open

Drill results between Red Hill

OPEN

OPEN

120ft @ 0.32 opt

2011 EOY Resource Footprint

between Red Hill and Goldrush confirm continuity

High grade zones

110ft @ 0.12 opt2011 EOY

Resource Footprint

High grade zones remain open at Goldrush

NNNNNNNNNNNNNNNNNNNNNNNNN OPEN

OPENResource Footprint

< 5 oz-ft

Grade x Thickness

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0 2,000

Feet0 1,000Meters

OPEN

A’45ft @ 0.10 opt

5 -10 oz-ft

10-20 oz-ft

20-50 oz-ft

+ 50 oz-ft

Cortez ‐ Continuous Organic Growth

Large growth opportunity in well endowed Cortez Camp Strong and continuous Carlin-style mineralizationStrong and continuous Carlin style mineralization Tabular mineralized horizon extends >4 kms from Red Hill to

south of Goldrush, and remains open in multiple directions Continuity between the two zones is confirmed Resources have doubled in 2011

1 3Moz Indicated + 5 7Moz Inferred (1)1.3Moz Indicated + 5.7Moz Inferred ( )

Majority of drilling along strike and between the two zones was too broad spaced to incorporate into initial resourcewas too broad spaced to incorporate into initial resource

Continue drilling to find extent of system as well as in-fill drilling to confirm continuity and grade

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Scoping study efforts have commenced


Lumwana – Chimiwungo Plan ViewABX Drilling & 2011 ABX Resourceg

Completed drillingPlanned drilling

2011

Inferred Resource

Measured &Indicated ResourceEquinox ShootEquinox ShootRoan ShootRoan Shoot

Schematic Section

CHIMIWUNGOCHIMIWUNGO

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MutomaMutomaProspectProspect

1km


Optimized Optimized PitPit$3.50/lb Cu$3.50/lb Cu

Lumwana – Chimiwungo Plan ViewQ4 2011 Drill Results

Selective DrillResults

2011

Inferred Resource

Measured &Indicated ResourceEquinox ShootEquinox ShootRoan ShootRoan Shoot

Schematic Section

CHI883 CHI883 13m @ 1.41% (148m)13m @ 1.41% (148m)

16m @ 2.25% Cu16m @ 2.25% Cu22m @ 0.87% Cu22m @ 0.87% Cu20m @ 1.60% Cu20m @ 1.60% Cu

28m @ 1.00% Cu28m @ 1.00% Cu 37m @ 0.91% Cu37m @ 0.91% Cu

16m @ 2.25% Cu16m @ 2.25% Cu

44m @ 1.00% Cu44m @ 1.00% Cu41m @ 0.80% Cu41m @ 0.80% Cu44m @ 1.07% Cu44m @ 1.07% Cu11m @ 1.80% Cu11m @ 1.80% Cu


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1km


Optimized Optimized PitPit$3.50/lb Cu$3.50/lb Cu 15m @ 1.10% Cu15m @ 1.10% Cu

Chimiwungo Q4 Summary

Drill ramp up on trackEa l es lts as e pected and con e sion / pg ade of Early results as expected and conversion / upgrade of resource for expansion case on track Thickened ore package likely to add additional Thickened ore package likely to add additional

resources along the Roan and Equinox Shoots System still remains open to the south and eastSystem still remains open to the south and east

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2011 RECORD FINANCIAL RESULTSEBITDA(1)

US$MAdjusted Net Earnings(1)

US$M

Adjusted Op. Cash Flow(1)

US$M

NetEarningsUS$M

8,376US$M

28%

US$MUS$M

6,521

5,2415,680

334,484 4,666 8%

25% 33%3,582 3,517


2010 2011 2010 2011 2010 2011 2010 2011

Margin Expansion

1 118

Total Cash Margins(1)

US$/oz 1,578

1 239

Net Cash Margins(1)

US$/oz 1,578

819

1,118

Avg. Realized Price(1) 1,228

935

1,239

1,228Avg. Realized Price(1)

429521

819

872985

535625

935

872

985

429 535

443 464409

460

TotalCash

Costs(1)

337 360293

339NetCash

C (1)

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2008 2009 2010 2011

(1) See final slide #1. 2008 & 2009 margins are based on US GAAP; 2010 & 2011 margins are based on IFRS

2008 2009 2010 2011

Costs(1)

2012E Operating Outlook

Gold production 7 3-7 8 Moz7.3-7.8 Moz Total Cash Costs:

$520-$560/oz(1)$520-$560/oz(1)

Net Cash Costs: $400-$450/oz(1)$400-$450/oz(1)

Copper production550-600 Mlbs550-600 Mlbsat total cash costs of$1.90-$2.20/lb(1)

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$ 90 $ 0/ b

(1) See final slide #1. IFRS basis; net cash costs based on expected realized copper price of $3.50/lb

2012E Total Cash Costs

$1,500

Global Gold Industry Cash Cost Curve(1)

$1,000

$500$/oz

$0

$500

US$

Barrick 2012E Total Cash Costs $520 to $560(2)

Pueblo Viejo $300 to $350(2,3)

$0

Pascua-Lama -$225 to -$275(2,3)

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-$500

0% 33% 67% 100%

Source: GFMS (Q3 2011 data); reported total cash costs (oz)(1) Source: GFMS (Q3 2011 data); reported total cash costs (oz) (2) See final slide #1 (3) See final slide #2

Cumulative Production

Financial Strength

Q4 2011 cash balance of ~$2.7 BSi ifi t ti h fl ti Significant operating cash flow generation– 2011 adjusted operating cash flow of ~$5.7 B(1)

– 2011 operating cash flow of ~$5 3 B2011 operating cash flow of ~$5.3 B

5 year, $4.0 B revolving credit facility

I d t ’ l ‘A’ dit ti Industry’s only ‘A’ credit rating


2012E Capex Outlook

Total 2012E capital expenditures of $5.5-$5.9 B include:include: Capital projects: $2.60-$2.75 B(1)

O it d d d i d l t Open pit and underground mine development: $850-$925 M(1)

Mi i i $850 $925 M(1) Mine site expansion: $850-$925 M(1)

Mine site sustaining: $1.20-$1.30 B(1)

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Bullish on Gold

Gold retains purchasing power while other currencies are being devalued:currencies are being devalued:– monetary and fiscal reflation & sovereign

debt concerns– low real interest rates– inflation in emerging markets

excessive global FX reserves– excessive global FX reserves

Growth in emerging market demandC t l b k b t b Central banks become net buyers Mine supply expected to contract

3434

In Closing 2011 marked another successful year for Barrick

– strong operating and record financial resultsd d j t i li– advanced project pipeline

– replaced gold reserves and increased resources– added Lumwana and Jabal Sayid– new greenfield discovery (Red Hill/Goldrush)– positive recognition for Responsible Mining practices

2012 outlook 2012 outlook– positive fundamentals for gold and copper prices– major beneficiary with large production base and competitive

cost profile– two world-class projects nearing production– project pipeline continues to advance

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project pipeline continues to advance– anticipate further exploration success– continued improvement in Responsible Mining practices

Footnotes1. 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 and average realized price per ounce/pound are non-GAAP financial measures. See pages 72-79 of Barrick’s Year-End 2011 Report.

2. All references to total cash costs and production are based on expected first full 5 year average, except where noted. Expected total cash costs and capital cost estimates for Pueblo Viejo and Pascua-Lama are based on $1,300/oz gold and $100/bbl oil. Pascua-Lama total cash costs and capital cost estimates are calculated based on a silver price of $25/oz and a Chilean peso f/x rate of 475:1.

3. Barrick’s exploration programs are designed and conducted under the supervision of Robert Krcmarov, Senior Vice President, Global Exploration of Barrick. For information on the geology, exploration activities generally, and drilling and analysis procedures on Barrick’s material properties, see Barrick’s most recent Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission.

4. The target of 9 Moz of annual gold production by 2016 and 50 Moz of annual silver production by 2016 and 1.0 billion pounds of annual copper production by 2017 reflects a current assessment of the expected production and timeline to complete and commission Barrick’s projects currently in construction (Pueblo Viejo, Pascua-Lama and Jabal Sayid) and the Company’s current assessment of existing mine site opportunities, some of which are sensitive to metal price and various capital and input cost assumptions. See note 2 above for additional detail regarding certain underlying assumptions.

5. Dividends for 2006 to April 2010 were paid on a semi-annual basis but are presented as a quarterly equivalent for comparative purposes. Semi-annual dividends were $0.11 per share in 2006, $0.15 per share in 2007 and $0.20 per share for 2008 to April 2010. In July 2010, Barrick moved from semi-annual to quarterly dividends. The declaration and payment of dividends remains at the discretion of the Board of Directors and will depend on the Company’s financial results, cash requirements, future prospects and other factors deemed relevant by the Board.

6. Calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, approximately 2.15 million ounces of reserves at Pueblo Viejo (Barrick’s 60% interest) is classified as mineralized material. For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 161-166 of Barrick’s 2011 Year-End Report.

7. ~1.5 million ounces of production is based on the estimated cumulative average annual production in the first full five years once both mines are at full capacity.8. Pueblo Viejo’s average annual EBITDA estimate is based on the midpoint of average annual production and average total cash costs in the first full five years of operation

(as disclosed in February 2008 at the time of the construction decision) and using the average monthly gold price of $926/oz in February 2008.9. EBITDA is based on the midpoint of average annual production and average total cash costs in the first full five years of operation assuming a $1,600/oz gold price, a

$30/oz silver price and a $100/bbl oil price.$30/oz silver price and a $100/bbl oil price. 10. Pascua-Lama’s average annual EBITDA estimate is based on the midpoint of average annual production and average total cash costs in the first full five years of operation

(as disclosed in May 2009 at the time of the construction decision) and using the average monthly gold price of $930/oz and a silver price of $14/oz in May 2009. 11. Capital expenditures represent Barrick’s share. Open pit and undergound mine development includes capitalized exploration costs. Minesite expansion includes capitalized

exploration costs and includes capitalized interest of about $115-$120 million. Project capital expenditures includies capitalized interest of about $375 million in 2012.

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Documents

Fourth Quarter 2011 Results and 2012 Outlook › ... › 2012 › Barrick-Q4-2011-Webcast_v001_f205dd.pdfConference Call / WebcastConference Call / Webcast – February 16 2012February