Barrick Set to Deliver Substantial Future Free Cash Flows
PRESS RELEASE
NYSE : GOLD TSX : ABX
All amounts expressed in US dollars unless stated otherwise
BARRICK SET TO DELIVER SUBSTANTIAL
FUTURE FREE CASH FLOWS
Toronto, March 18, 2022 – Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) is built on a foundation
of six Tier One 1 gold mines with rolling 10-year plans which secure the company’s ability to generate
substantial free cash flows2 for the next decade and beyond, says executive chairman John Thornton.
Writing in the company’s 2021 annual report, published today, Thornton notes that in September 2018,
when the Randgold merger was announced, Barrick had net debt in excess of $4 billion. Since then it
has not only moved into a net cash position but has returned $2.5 billion of cash to shareholders, including
last year’s record distribution of $1.4 billion.
“As previously announced, after careful consideration of our capital allocation, the board has settled on
a new dividend policy comprising a base dividend with an additional performance dividend linked to the
net cash on the balance sheet, starting in 2022. We believe this will give our shareholders guidance on
future dividend streams3,” he says.
“The board has also approved a $1 billion share buyback plan which will afford us the opportunity to
acquire our shares when they are trading below what we consider to be their intrinsic value4.”
Enquiries
President and CEO
Mark Bristow
+1 647 205 7694
+44 788 071 1386
Senior EVP and CFO
Graham Shuttleworth
+1 647 262 2095
+44 779 771 1338
Investor and Media Relations
Kathy du Plessis
+44 20 7557 7738
Email: [email protected]
Website: www.barrick.com
Notes:
1 A Tier One Gold Asset is an asset with a reserve potential to deliver a minimum 10 -year life, annual production of at least
500,000 ounces of gold and total cash costs per ounce over the mine life that are in the lower half of the industry cost curve.
2 “Free cash flow” is a non-GAAP financial performance measure which deducts capital expenditures from net cash provided
by operating activities. Management believes this to be a useful indicator of our ability to operate without reliance on
additional borrowing or usage of existing cash. Free cash flow is intended to provide additional information only and does
not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures
of performance prepared in accordance with IFRS. Other companies may calculate this measure differently. Further details
including a detailed reconciliation of this non -GAAP financial measure to its most directly comparable GAAP measure are
incorporated by reference and provided on page 95 of the MD&A that accompanies Barrick’s 2021 financial statements,
respectively, filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
3. The declaration and payment of dividends is at the discretion of the Board of Directors, and will depend on the
company’s financial results, cash requirements, future prospects, the number of outstanding common shares, and
other factors deemed relevant by the Board.
4 The actual number of common shares that may be purchased, if any, and the timing of any such purchases, will be
determined by Barrick based on a number of factors, including the company’s financial performance, the availability of
cash flows, and the consi deration of other uses of cash, including capital investment opportunities, returns to
shareholders, and debt reduction.
BARRICK GOLD CORPORATION PRESS RELEASE
Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this press 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, are forward -looking statements. The words “ will”, “set to deliver”,
“secure”, “ability”, “expect”, “commit”, “would”, “could” and similar expressions identify forward -looking statements. In
particular, this press release contains forward -looking statements including, without limitation, with respect to: Barrick’s
ability to deliver substantial free cash flows for the next decade and beyond ; Barrick’s performance dividend policy ,
including the criteria for future dividend payments and guidance on future dividend streams; the expected amount and
timing of Barrick ’s share repurchase program; the expectation that the Company will hav e the financial strength to
undertake the contemplated share repurchase program during the relevant period; and the potential that the share
repurchase program may be suspended or discontinued by the Company at any time.
Forward -looking statements are nec essarily 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 press release in light of management ’s exp erience and perception of current conditions and expected
developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies.
Known 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 factors include, but are
not limited to: fluctuations in the spot and forward price of gold, copper, or certain other comm odities (such as silver, diesel
fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; assumptions relating to
the trading price of the Company ’s common shares; changes in mineral production performance, exploit ation, and
exploration successes; disruption of supply routes which may cause delays in construction and mining activities at
Barrick ’s more remote properties; whether benefits expected from recent transactions are realized; diminishing quantities
or grade s of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of
capital projects; operating or technical difficulties in connection with mining or development activities, including
geotechnical challenges an d disruptions in the maintenance or provision of required infrastructure and information
technology systems; failure to comply with environmental and health and safety laws and regulations; timing of receipt of,
or failure to comply with, necessary permits and approvals; uncertainty whether some or all of 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 cash flows and the values of assets and liabilities based on projected future cash flows;
the impact of inflation; fluctuations in the currency markets; changes in national and local government legislation, taxation ,
controls or regulations and/or changes in the administrati on of laws, policies and practices, expropriation or nationalization
of property and political or economic developments in the 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; 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 exploration results will not be consistent
with the Company ’s expectations; risks that exploration data may be incomplete 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; risks associated wi th illegal and
artisanal mining; risks associated with new diseases, epidemics and pandemics, including the effects of the global Covid -
19 pandemic; litigation and legal and administrative proceedings; 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; 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;
increased costs and physical risks, including extreme weather events and resource shortages, related to climate change;
and availability an d 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 environmental hazards, industrial
accidents, unusual or unexpected f ormations, pressures, cave -ins, flooding and gold bullion, copper cathode or gold or
copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies ca n 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 press 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
Barrick ’s ability to achieve the expectations set forth in the forward -looking statements contained in t his press release.
Barrick 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.