DRC and Barrick Renew Mutual Commitment to Developing Country’s Great Potential
PRESS RELEASE
NYSE : GOLD TSX : ABX
DRC and Barrick Renew Mutual Commitment to
Developing Country’s Great Potential
WASHINGTON, D.C. — April 3, 2019 — Democratic Republic of Congo’s newly elected president Felix
Tshisekedi and Barrick Gold Corporation’s Executive Chairman John Thornton today confirmed their
partnership to develop the country’s gold mining industry in a meeting here during the president’s state visit
to the United States.
Barrick operates Kibali in the DRC, one of the world’s ten largest gold mines, and along with its joint venture
partner AngloGold Ashanti is one of the major investors in the country. It has an extensive exploration
programme designed to find and develop more world class orebodies in the DRC.
In a speech to the U.S. Chamber of Commerce his excellency the president Tshisekedi earlier said that
while the DRC was potentially the wealthiest country on earth in terms of natural resources, it remains
one of its poorest. It was his administration’s key priori ty to effect economic and financial reforms
and development with help of the international community, especially the USA.
After the meeting, John Thornton said he had been encouraged by the president’s vision o f attracting
foreign investment and supporting the development of the DRC’s mining industry in a spirit of partnership.
“As the value leader in the global gold sector, Barrick offers the DRC peerless exploration, technical and
financial support and through Kibali has proved its commitment to the country, the people and its
local partners. We look forward to continuing making a significant and growing contribution to the DRC’s
economy and to unlocking the enormous value of its mineral potential,” he said.
Enquiries:
President and
Chief Executive Officer
Mark Bristow
+1 647 205 7694
+44 788 071 1386
COO, Africa and
Middle East
Willem Jacobs
+243 820 678 040
DRC country manager
Cyrille Mutombo
+243 815 842 990
Investor and
media relations
Kathy du Plessis
+44 20 7557 7738
Email: [email protected]
About the Kibali Gold Mine
The Kibali mine, located in the Democratic Republic of Congo, is one of the largest gold mines in Africa. It
comprises an integrated open pit and an underground operation as well as a 7.2Mtpa processing plant. First gold
was poured in 2013 from open pit operations and commissioning of the full underground operation was completed
at the end of 2017.
Kibali is in the northeast of the DRC, approximately 220km east of the capital of the Haut Uele province, Isiro,
150km west of the Ug andan border town of Arua and 1,800km from the Kenyan port of Mombasa. The mine is
owned by Kibali Goldmines SA (Kibali) which is a joint venture company effectively owned 45% by each of Barrick
and AngloGold Ashanti, and 10% by Société Miniére de Kilo -Moto (SOKIMO). The mine was developed and is
operated by Barrick.
BARRICK GOLD CORPORATION PRESS RELEASE
About Barrick
On January 1, 2019, a new Barrick was born out of the merger between Barrick Gold Corporation and Randgold
Resources Limited. Shares in the new company trade on the NYSE (GOLD) and the TSX (ABX).
The merger has created a sector-leading gold company which owns five of the industry’s Top 10 Tier One 1 gold
assets (Cortez and Goldstrike in Nevada, USA (100%); Kibali in DRC (45%); Loulo-Gounkoto in Mali (80%); and
Pueblo Viejo in Domi nican Republic (60%)) and two with the potential to become Tier One 1 gold assets
(Goldrush/Fourmile (100%) and Turquoise Ridge (75%), both in the USA).
With mining operations and projects in 15 countries, including Argentina, Australia, Canada, Chile, Côte d’Ivoire,
DRC, Dominican Republic, Mali, Papua New Guinea, Peru, Saudi Arabia, Senegal, USA, and Zambia, Barrick
has the lowest total cash cost 2 position among its senior gold peers 3 and a diversified asset portfolio positioned
for growth in many of the world’s most prolific gold districts.
Cautionary Statement on Forward-Looking Information
Certain information contained in this press release, including any information as to Barrick’s strategy, 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 “potential”, “develop”, “commitment”,
“support” and “contribution” and similar expressions identify forward -looking statements. In particular, this press
release contains forward-looking statements including, without limitation, with respect to future exploration and
operating results at Kibali and future contributions to the economy of the Democratic Republic of Congo.
Forward-looking statemen ts 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
Barrick as at the date of this press release in light of managemen t’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: changes in national and local government legislation,
taxation, controls, or regulations and/or changes in the administration of laws, policies, and practices,
expropriation or nationalization of property and political or economic developments in the Democratic Republic
of Congo; lack of certainty with respect to foreign legal systems, corruption, and other factors that are inconsistent
with the rule of law; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; fluctuations in the
spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and
electricity); timing of receipt of, or failure to comply with, necessary permits and approvals; failure to comply with
environmental and health and safety laws and regulations; litigation; damage to the Barrick’s repu tation due to
the actual or perceived occurrence of any number of events, including negative publicity with respect to the
Barrick’s handling of environmental matters or dealings with community groups, whether true or not; the
speculative nature of mineral exploration and development; changes in mineral production performance,
exploitation, and exploration successes; 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; 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; contests over title to
properties, particularly title to undeveloped properties, or over access to water, power, and other required
infrastructure; 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 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).
BARRICK GOLD CORPORATION PRESS RELEASE
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 press release are qualified by these cautionary statements. Specific
reference is made to the most recent Form 40 -F/Annual Information F orm 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 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.
Third Party Data
The total cash costs comparison of Barrick to its senior gold peers is based on data obtained from Wood
Mackenzie as of August 31, 2018. Wood Mackenzie is an independent third party research and consultancy firm
that provides data for, among others, the metals and mining industry. Wood Mackenzie is n ot affiliated with
Barrick.
Where figures for Barrick are compared to its senior gold peers, the data from Wood Mackenzie has been used
to ensure consistency in the compared measure across the Barrick and the comparator group. Barrick does not
have the ability to verify the Wood Mackenzie figures and the non -GAAP financial performance measures used
by Wood Mackenzie may not correspond to the non-GAAP financial performance measures calculated by Barrick
or any of the other senior gold peers.
Endnotes
1. A Tier One Gold Asset is a mine with a stated life in excess of 10 years with 2017 production of at least
500,000 ounces of gold and 2017 total cash cost per ounce within the bottom half of Wood Mackenzie’s
cost curve tools (excluding state -owned and privately-owned mines). For purposes of determining Tier
One Gold Assets, “Total cash cost” per ounce is based on data from Wood Mackenzie as of August 31,
2018. The Wood Mackenzie calculation of “Total cash cost” per ounce may not be identical to the manner
in which Barrick calculates comparable measures. “Total cash cost” per ounce is a non-GAAP financial
performance measure with no standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. “Total cash cost” per ounc e should not be considered
by investors as an alternative to operating profit, net profit attributable to shareholders, or to other IFRS
measures. Wood Mackenzie is an independent third party research and consultancy firm that provides
data for, among others, the metals and mining industry. Wood Mackenzie does not have any affiliation
to Barrick. See also Endnote #2.
2. “Lowest total cash cost” is based on data from Wood Mackenzie as of August 31, 2018. “Total cash cost”
is a non-GAAP financial performance measure with no standardized meaning under IFRS and therefore
may not be comparable to similar measures presented by other issuers. Financial comparisons between
the post-merger Barrick and its senior gold peers are made on the basis of the data presented by Wood
Mackenzie which may not be calculated in the same manner as Barrick calculates comparable
measures. Barrick believes that total cash cost is a useful indicator for investors and management of a
mining company’s performance as it provides an indica tion of a company’s profitability and efficiency,
the trends in cash costs as the company’s operations mature, and a benchmark of performance to allow
for comparison against other companies.
3. Senior gold peers means the following companies: Agnico Eagle Mines Limited, Goldcorp Inc., Newcrest
Mining Limited, and Newmont Mining Corporation.