Barrick Reports Preliminary Full Year and Fourth Quarter Production Results
NEWS RELEASE
NYSE : GOLD TSX : ABX
Barrick Reports Preliminary Full Year and Fourth
Quarter Production Results
All amounts expressed in U.S. dollars
TORONTO, January 21, 2019 — Today Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick” or
the “Company”) announced preliminary full year gold production of 4.53 million ounces for 2018, in line with
the Company’s guidance of 4.5 -5.0 million ounces, and preliminary full year gold sales of 4.54 million
ounces. Preliminary fourth quarter gold production was 1.26 million ounces, and preliminary fourth quarter
gold sales were 1.23 million ounces. The average market price for gold in the fourth quarter was $1,226
per ounce. Fourth quarter gold cost of sales per ounce 1 are expected to be approximately 15 -17 percent
higher than third quarter results, primarily as a result of a non -cash inventory impairment on Lagunas
Norte’s long-term stockpiles. Fourth quarter cash costs per ounce2 are expected to be in line with the third
quarter results and all-in sustaining costs per ounce2 approximately 3-5 percent higher as compared to third
quarter results. As the merger between Barrick and Randgold Resources Limited (“Randgold”) was effective
on January 1, 2019, these preliminary results exclude production and sales from Randgo ld (refer to the
section below for Randgold’s preliminary results).
Preliminary full year copper production was 383 million pounds, which was in line with the Company’s
guidance of 345 -410 million pounds for 2018, and preliminary full year copper sales were 382 million
pounds. Preliminary copper production in the fourth quarter was 109 million pounds, and preliminary copper
sales in the fourth quarter were 109 million pounds. The average market price for copper in the fourth
quarter was $2.80 per pound. We expect quarter-over-quarter increases in our consolidated copper cost of
sales per pound1 of approximately 30 percent (primarily driven by an adjustment to depreciation), C1 cash
costs per pound2 of approximately 1-3 percent and all-in sustaining costs per pound2 of approximately 9-
11 percent, as compared to third quarter results.
We now expect our full year 2018 effective tax rate to be approximately 52 -56 percent, an increase from
our previous range of 48 -50 percent. The increase is primarily due to lower-than-anticipated sales from
operations in lower-tax jurisdictions, and higher-than-anticipated sales in higher-tax jurisdictions.
Barrick will provide additional discussion and analysis regarding fourth quarter production and sales when
the Company reports quarterly results before markets open on February 13, 2019, followed by a live
presentation by President and CEO Mark Bristow at its offices in Toronto on February 13 at 11:00 EST,
linked to a conference call and webcast. The following table inclu des preliminary gold and copper
production and sales results from our operations:
Three months ended
December 31, 2018
Year ended
December 31, 2018
Production Sales Production Sales
Gold (equity ounces (000s))
Barrick Nevada3 620 595 2,100 2,097
Pueblo Viejo (60%) 166 170 581 590
BARRICK GOLD CORPORATION NEWS RELEASE
Lagunas Norte 50 50 245 251
Veladero (50%) 77 74 278 280
Turquoise Ridge (75%) 74 66 268 262
Acacia (63.9%) 84 86 334 333
Kalgoorlie (50%) 58 61 314 320
Porgera (47.5%) 70 72 204 213
Hemlo 52 48 171 168
Golden Sunlight 11 10 32 30
Total Gold 1,262 1,232 4,527 4,544
Copper (equity pounds (millions))
Lumwana 65 65 224 222
Zaldívar (50%) 29 30 104 103
Jabal Sayid (50%) 15 14 55 57
Total Copper 109 109 383 382
Randgold Resources Limited
The following information relates to production and sales of Randgold prior to the merger between Barrick
and Randgold, which became effective on January 1, 2019. Randgold production and sales prior to the
effective date of the merger is not attributable to Barrick and is included for information purposes only.
Randgold’s preliminary full year group gold production was 1.28 million ounces for 2018, one percent below
Randgold’s guidance of 1.30 -1.35 million ounces as a result of a week of industrial action at Loulo -
Gounkoto. Preliminary full year group gold sales were 1.30 million ounces. Preliminary fourth quarter group
gold produ ction was 375 thousand ounces, and preliminary fourth quarter group gold sales were 376
thousand ounces.
Three months ended
December 31, 2018
Year ended
December 31, 2018
Production Sales Production Sales
Gold (ounces (000s)) *
Loulo-Gounkoto 192 192 660 667
Morila (40%) 8 7 30 30
Tongon 81 79 230 229
Kibali (45%) 94 98 363 370
Randgold Total 375 376 1,283 1,296
* Randgold presents the production and sales figures for Loulo -Gounkoto and Tongon on a 100% basis, although it owns 80% and
89.7%, respectively. Randgold presents its 40% and 45% equity share of Morila and Kibali, respectively.
BARRICK GOLD CORPORATION NEWS RELEASE
Enquiries:
Group investor & media relations
Kathy du Plessis
Tel/mobile: +44 20 7557 7738
Senior VP, Investor Relations
Deni Nicoski
Tel +1 416 307-7410
Website: www.barrick.com
Technical Information
The scientific and technical information contained in this news release has been reviewed and approved
by: Geoffrey Locke, P. Eng., manager, metallurgy of Barrick; and Simon Bottoms, mineral resources
manager: Africa and Middle East of Barrick — each a “Qualified Person” as defined in National Instrument
43-101 - Standards of Disclosure for Mineral Projects.
Fourth Quarter 2018 Results
Barrick will release its Fourth Quarter 2018 Results before markets open on February 13, 2019 , followed
by a live prese ntation by President and CEO Mark Bristow on February 13 at 11:00 EST, linked to a
conference call and webcast.
U.S. and Canada (toll-free): 1 800 319-4610
UK (toll-free): 0808 101 2791
International (toll): +1 416 915-3239
The presentation and webcast materials will be available on Barrick’s website. The conference call will be
available for replay by phone at 1 855 669-9658 (U.S. and Canada toll -free), and +1 604 674 -8052
(international), access code 2852.
Endnote 1
Cost of sales applicable to gold per ounce is calculated using cost of sales applicable to gold on an
attributable basis (removing the non-controlling interest of 40% Pueblo Viejo and 36.1% Acacia from cost
of sales), divided by attributable gold ounces. Cost of sales a pplicable to copper per pound is calculated
using cost of sales applicable to copper including our proportionate share of cost of sales attributable to
equity method investments (Zaldívar and Jabal Sayid), divided by consolidated copper pounds (including
our proportionate share of copper pounds from our equity method investments). Cost of sales includes
depreciation.
Endnote 2
Cash costs per ounce and all -in sustaining costs per ounce are non -GAAP financial measures which are
calculated based on the defin ition published by the World Gold Council (“WGC”) (a market development
organization for the gold industry comprised of and funded by 24 gold mining companies from around the
world, including Barrick). The WGC is not a regulatory organization. Management uses these measures to
monitor the performance of our gold mining operations and its ability to generate positive cash flow, both
on an individual site basis and an overall company basis.
Cash costs start with our cost of sales related to gold production a nd removes depreciation, the non -
controlling interest of cost of sales, and includes by -product credits. All-in sustaining costs start with cash
costs and include sustaining capital expenditures, general and administrative costs, minesite exploration
BARRICK GOLD CORPORATION NEWS RELEASE
and evaluation costs, and reclamation cost accretion and amortization. These additional costs reflect the
expenditures made to maintain current production levels.
We believe that our use of cash costs and all -in sustaining costs will assist analysts, investors , and other
stakeholders of Barrick in understanding the costs associated with producing gold, understanding the
economics of gold mining, assessing our operating performance, and also our ability to generate free cash
flow from current operations, and to generate free cash flow on an overall company basis. Due to the
capital-intensive nature of the industry and the long useful lives over which these items are depreciated,
there can be a significant timing difference between net earnings calculated in accor dance with IFRS and
the amount of free cash flow that is being generated by a mine, and therefore we believe these measures
are useful non -GAAP operating metrics and supplement our IFRS disclosures. These measures are not
representative of all of our cash expenditures as they do not include income tax payments, interest costs,
or dividend payments. These measures do not include depreciation or amortization.
Cash costs per ounce and all -in sustaining costs are intended to provide additional information only , and
do not have standardized definitions under IFRS, and should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS. These measures are not equivalent to net
income or cash flow from operations a s determined under IFRS. Although the WGC has published a
standardized definition, other companies may calculate these measures differently.
C1 cash costs per pound and all -in sustaining costs per pound are non -GAAP financial measures related
to our coppe r mine operations. We believe that C1 cash costs per pound enables investors to better
understand the performance of our copper operations in comparison to other copper producers who present
results on a similar basis. C1 cash costs per pound excludes royalties and non-routine charges as they are
not direct production costs. All -in sustaining costs per pound is similar to the gold all -in sustaining costs
metric and management uses this to better evaluate the costs of copper production. We believe this
measure enables investors to better understand the operating performance of our copper mines as this
measure reflects all of the sustaining expenditures incurred in order to produce copper. All -in sustaining
costs per pound includes C1 cash costs, corporate gen eral and administrative costs, minesite exploration
and evaluation costs, royalties, environmental rehabilitation costs, and write -downs taken on inventory to
net realizable value.
Barrick will provide a full reconciliation of our final non-GAAP financial measures when the Company reports
its quarterly results on February 13, 2019.
Endnote 3
Includes our 60% equity share of South Arturo.
Cautionary Statements Regarding Preliminary Full Year and Fourth Quarter Production, Sales, and
Costs for 2018, and Forward-Looking Information
Barrick cautions that, whether or not expressly stated, all full year and fourth quarter figures contained in
this news release including, without limitation, production levels and sales and associated costs (including
costs of sales per ounce for gold and per pound for copper, all -in sustaining costs per ounce/pound, cash
costs per ounce, and C1 cash costs per pound) are preliminary, and reflect our expected full year and fourth
quarter results as of the date of this news release. Actual reported full year and fourth quarter production
levels and sales and associated costs are subject to management’s final review, as well as review by the
Company’s independent accounting firm, and may vary significantly from those expectations because of a
number of factors, including, without limitation, additional or revised information, and changes in accounting
standards or policies, or in how those standards are applied. Barrick will provide additional discussion and
BARRICK GOLD CORPORATION NEWS RELEASE
analysis and other important information about its full year and fourth quarter production levels and sales
and associated costs when it reports actual results on February 13, 2019. For a complete picture of the
Company’s financial performance, it will be necessary to review all of the information in the Company’s full
year and fourth quarter financial report and related MD&A. Accordingly, readers are cautioned not to rely
solely on the information contained herein.
Finally, Barrick cautions that this news release contains forward -looking statements with respect to: (i)
Barrick’s production; (ii) estimates of cost of sales per ounce for gold and per pound for copper, all -in
sustaining costs per ounce/pound, cash costs per ounce, and C1 cash costs per pound; and (iii) estimates
of effective tax rates.
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 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 commodities (such as silver, diesel fuel, natural
gas, and electricity); the speculative 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 fo r which additional engineering and other analysis is required; the duration of
the Tanzanian ban on mineral concentrate exports; the ultimate terms of any definitive agreement between
Acacia and the Government of Tanzania to resolve a dispute relating to t he imposition of the concentrate
export ban and allegations by the Government of Tanzania that Acacia under -declared the metal content
of concentrate exports from Tanzania and related matters; whether Acacia will approve the terms of any
final agreement re ached between Barrick and the Government of Tanzania with respect to the dispute
between Acacia and the Government of Tanzania; the benefits expected from recent transactions being
realized; diminishing quantities or grades 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 and 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 whethe r 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 b ased 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 administration of
laws, policies and practice s, 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; 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; 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
BARRICK GOLD CORPORATION NEWS RELEASE
with working with partners in jointly controlled assets; employee relations including loss of key employees;
increased costs and physical risks, including extre me 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 environmental 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 insurance, or inability to obtain insurance, 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 Barrick’s ability to achieve
the expectations set forth in the forward-looking statements contained in this news 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.