After a Year of Building a Strong Foundation, Barrick Looks to the Next Phase of Value Creation
NEWS RELEASE
NYSE : GOLD TSX : ABX
After a Year of Building a Strong Foundation,
Barrick Looks to the Next Phase of Value Creation
All amounts expressed in US dollars
Toronto – March 25, 2020 – In the first year since its merger with Randgold Resources, the
restructured and refocused Barrick Gold Co rporation (NYSE:GOLD)(TSX:ABX) (“Barrick”) has
delivered a strong operational performance and made significant progress towards its goal of
becoming the world’s most valued gold company, it says in its 2019 annual report published
today.
President and chief executive Mark Bristow says in the report that Barrick’s new leadership started
2019 with a long and challenging to-do list and succeeded in ticking all the boxes, and more.
Highlights included gold production at the top end of the guidance range; copper production which
exceeded its forecast; the consummation of the Nevada Gold Mines joint venture, majority-owned
and operated by Barrick; the consolidation of the Tanzanian mines; and the disposal of some non-
core assets. Net of depletion, proven and probable reserves increased year-over-year at a higher
grade. Net earnings per share were $2.26 for 2019, adjusted net earnings rose by 46%1, net debt
was halved to $2.2 billion and the quarterly dividend was increased three times during the year.
Behind the scenes, the corporate structure was flattened, general and administrative costs were
reduced, executive management teams were est ablished for each region, and responsibility for
the orebodies was moved back to the operations. A strong geological and mineral resource
management capacity was introduced throughout the organization to ensure the optimization of
existing assets.
“The work we did in 2019 has equipped us well to take Barrick to the next level,” says Bristow.
“We stand on the strong foundation of our enormous organic growth potential, which will support
a positive production profile and a very robust business, capable of generating a substantial cash
flow for at least the next decade. There are also opportunities for growth outside our current ambit
which we continue to explore.”
Included in the report is Barrick’s 10-year production plan, which showcases a modern gold
mining business capable of sustainably producing around five million ounces of gold per year and
delivering significant free cash flow.2
Bristow notes that during the past year environmental, social and governance (ESG) management
had become a key investment criterion and is now generally accepted as a critical measure of the
sustainability of a business.
“The principles of ESG have long been embedded in the DNA of both legacy companies. Our
long-term strategy recognizes that we operate in a changing world where business is expected to
BARRICK GOLD CORPORATION NEWS RELEASE
meet the highest standards of behavior, and where ethical issues have become commercial
considerations with serious consequences. We call this our social license and it is a core part of
all our operations,” he says.
“Barrick is also intent on being at the leading edge of digitalization and automation in the mining
industry, and trials and projects designed to make our operations more efficient as well as safer
are driving the increased use of technology across the group.”
Also in the annual report, executive chairman John Thornton notes that since the year-end,
Barrick has been pro-active in dealing with the Covid-19 pandemic, which he termed “a global
disaster which is changing the way we work and live in a radically disruptive process with currently
no clear end in sight”.
“Barrick is fully engaged in managing the impact of Covid-19 on our business and our people, and
emergency response measures have been rolled out at all our sites and operations. Our new
leadership’s experience in managing pandemics and major crises, combined with Barrick’s
financial muscle and its long-established culture of caring for the welfare of its employees and
communities, have placed us in a strong position to contend with this challenge,” he says.
Barrick’s 2019 Annual Report, Annual Information Form and Form 40-F are now available on
SEDAR (www.sedar.com) and EDGAR (www.sec. gov), respectively. Updated National
Instrument 43-101 technical reports for each of the Carlin Complex and the Turquoise Ridge
Complex, current as of December 31, 2019, are also available on SEDAR.
To access the above-mentioned documents, pl ease visit www.barrick.com. Shareholders may
also receive a copy of Barrick’s audited financial statements without charge upon request to
Barrick’s Investor Relations Department, 161 Bay Street, Suite 3700, Toronto, Ontario, M5J 2S1
or to [email protected].
Enquiries:
Mark Bristow
President and CEO
+1 647 205 7694
+ 44 788 071 1386
Graham Shuttleworth
Senior executive vice-president and CFO
+1 647 262 2095
+44 1534 735 333
+44 779 771 1338
Kathy du Plessis
Investor and media relations
+44 20 7557 7738
Email: [email protected]
Website: www.barrick.com
BARRICK GOLD CORPORATION NEWS RELEASE
Endnote 1
“Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial performance
measures. Adjusted net earnings excludes the follo wing from net earnings: certain impairment charges
(reversals) related to intangibles, goodwill, property, plant and equipment, and investments; gains (losses)
and other one-time costs relating to acquisitions or dispositions; foreign currency translation gains (losses);
significant tax adjustments not related to current period earnings; unrealized gains (losses) on non-hedge
derivative instruments; and the tax effect and noncontrolling interest of these items. The company uses this
measure internally to evaluate our underlying opera ting performance for the reporting periods presented
and to assist with the planning and forecasting of fu ture operating results. Barrick believes that adjusted
net earnings is a useful measure of our performanc e because these adjusting items do not reflect the
underlying operating performance of our core mining business and are not necessarily indicative of future
operating results. Adjusted net earnings and adjusted net earnings per share are intended to provide
additional information only and do not have any standardized meaning under IFRS and may not be
comparable to similar measures of performance pr esented by other companies. They should not be
considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
For further details on these non-GAAP measures, please refer to page 63-64 of the MD&A accompanying
Barrick’s fourth quarter 2019 audited financial st atements filed on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov.
Endnote 2
Barrick is closely monitoring the global Covid-19 pandemic and Barrick’s guidance may be impacted if the
operation or development of our mines and projects is di srupted due to efforts to slow the spread of the
virus.
Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this news release, including any information
as to our strategy, projects, plans or future financial or operating performance, constitutes “forward-looking
statements”. All statements, other than statements of historical fact, ar e forward-looking statements. The
words “looks”, “believe”, “expect”, “anticipate”, “target”, “plan”, “objective”, “assume”, “intend”, “intention”,
“project”, “goal”, “continue”, “budget”, “estimate”, “potential”, “may”, “will”, “can”, “could”, “would” and similar
expressions identify forward-looking statements. In particular, this new s release contains forward-looking
statements including, without limitation, with respect to: the company’s goal to be the world’s most valued
gold mining business; Barrick’s forward-looking produc tion guidance and estimates of future costs,
including with respect to Barrick’s 5-year plan and 10-year gold production profile; the impact of the global
Covid-19 pandemic on Barrick’s operations; Barrick’s sustainability performance; targeted debt and cost
reductions; mine life and production rates; the benefits expected to be realized from the Nevada Gold Mines
joint venture; targeted debt and cost reductions; mine life and production rates; potential mineralization and
metal or mineral recoveries; and expectations regardi ng future price assumptions, financial performance
and other outlook or guidance.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including
material estimates and assumptions related to the factors set forth below that, while considered reasonable
by the company as at the date of this news release in light of management’s experience and perception of
current conditions and expected developments, are inher ently subject to significant business, economic
and competitive uncertainties and contingencies. Know n and unknown factors could cause actual results
to differ materially from those projected in the forward-looking statements and undue reliance should not
be placed on such statements and information. Such fact ors include, 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
BARRICK GOLD CORPORATION NEWS RELEASE
gas and electricity); the speculativ e nature of mineral exploration and development; changes in mineral
production performance, exploitation and exploration successes; risks associated with projects in the early
stages of evaluation and for which additional engineering and other analysis is required; disruption of supply
routes which may cause delays in construction and mining activities at the company’s more remote
properties; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical
challenges associated with the construction of capita l projects; operating or technical difficulties in
connection with mining or development activities, including geotechnical challenges and disruptions in the
maintenance or provision of required infrastructure an d information technology systems; failure to comply
with environmental and health and safety laws and regul ations; timing of receipt of, or failure to comply
with, necessary permits and approvals; uncertainty with respect to whether some or targeted investments
and projects will meet the company’s capital allocation objectives and internal hurdle rate; the impact of
global liquidity and credit availability on the timing of ca sh flows and the values of assets and liabilities
based on projected future cash flows; adverse changes in our credit ratings; the impact of inflation;
fluctuations in the currency market s; changes in U.S. dollar interest rates; changes in national and local
government legislation, taxation, controls or regulat ions and/or changes in the administration of laws,
policies and practices; expropriation or nationalization of property and political or economic developments
in Canada, the United States and other jurisdictions in which the company or its affiliates do or may carry
on business in the future; lack of certainty with respect to foreign legal systems, corruption and other factors
that are inconsistent with the rule of law; risks as sociated with illegal and artisanal mining; the risks of
operating in jurisdictions where infectious diseases present major health care issues; risks associated with
the Covid-19 pandemic and its impact on operations or Barrick’s supply chain; damage to the company’s
reputation due to the actual or perceived occurrence of any number of events, including negative publicity
with respect to the company’s handling of environmental matters or dealings with community groups,
whether true or not; the possibility that future explorat ion results will not be consistent with the company’s
expectations; risks that exploration data may be in complete and considerable additional work may be
required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic
studies and investment; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; litigation;
contests over title to properties, particularly title to undeveloped properties, or over access to water, power
and other required infrastructure; business opportunities that may be presented to, or pursued by, the
company; risks associated with the fact that certain of the initiati ves described in the Annual Report 2019
are still in the early stages and may not materialize; our ability to successfully integrate acquisitions or
complete divestitures; risks associated with working with partners in jointly controlled assets; employee
relations including loss of key employees; increas ed costs and physical risks, including extreme weather
events and resource shortages, related to climate change; and availability and increased costs associated
with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral
exploration, development and mining, including environm ental 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 insuranc e, or inability to obtain in surance, 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-looking statements made in this news release are qualified by these cautionary
statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with
the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some
of the factors underlying forward-looking statements and the risks that may affect the company’s ability to
achieve the expectations set forth in the forward-look ing statements contained in this news release. We
disclaim 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.