First Quarter Report 2017
FIRST QUARTER REPORT 2017
All amounts expressed in U.S. dollars unless otherwise indicated
Barrick Reports First Quarter 2017 Results
Barrick reported first quarter net earnings attributable to equity holders (“net earnings”) of
$679 million ($0.58 per share), and adjusted net earnings1 of $162 million ($0.14 per share).
The Company reported first quarter revenues of $1.99 billion, net cash provided by operating
activities (“operating cash flow”) of $495 million, and free cash flow2 of $161 million.
Gold production in the first quarter was 1.31 million ounces, at a cost of sales applicable to gold
of $833 per ounce, and all-in sustaining costs3 of $772 per ounce.
We announced a Strategic Cooperation Agreement with Shandong Gold, including the sale of
50 percent of Veladero for $960 million. As a next step, b oth companies will jointly explore
the potential development of Pascua -Lama, and will evaluate additional inv estment
opportunities.
We further optimized our portfolio through the creation of a new joint venture with Goldcorp
at the Cerro Casale project.
Total debt was reduced by $178 million in the first quarter.
Full-year gold production is now expected to be 5.3-5.6 million ounces, down from our
previous range of 5.6 -5.9 million ounces. Approximately two -thirds of this reduction i s
attributable to the anticipated sale of 50 percent of Veladero . Cost of sales and all -in
sustaining cost guidance for the full year remains unchanged.
A comprehensive plan to strengthen and improve the Veladero mine’s operating systems is
now under review by federal and provincial authorities in Argentina. O ur adjusted guidance
assumes normal leaching activities will resume in June, pending government approval and the
lifting of judicial restrictions.
Barrick will hold its first Sustainability Briefing for investors on May 9, 2017 . Visit
www.barrick.com for webcast information.
TORONTO, April 24 , 201 7 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick” or the
“Company”) today reported strong first quarter results , with operating cash flow of $495 million ,
free cash flow 2 of $161 million, and production and costs in line with expectations. Our focus remains
on maintaining and growing industry -leading margins, driven by innovation and our di gital
transformation, managing our portfolio and allocating capital and talent with discipline and rigor, and
leveraging our distinctive partnership culture as a competitive advantage.
Reflecting our focus on operational excellence and Best -in-Class performance, the integration of our
Cortez and Goldstrike mines in Nevada is on track, with stronger-than-anticipated first quarter results
and the accelerated rollout of digital mining solutions. Higher capital expenditures in the first quarter
were in line with plan, and underscore our commitment to disciplined investment in 2017, as we re-
BARRICK FIRST QUARTER 2017 2 PRESS RELEASE
invest in our business to deliver high margin ounces and growth in free cash flow per share over the
long term.
We further optimized our portfolio through the creation of distinctive new partnerships. In early April,
we announced a partnership with Shandong Gold Group that will help us generate more value from
the Veladero mine in the short term, while potentially unlocking the untapped mineral wealth of the
El Indio Belt in Argentina and Chile over the long term. In addition, we announced the creation of a
new jo int venture with Goldcorp at the Cerro Casale project in Chile, and new exploration
partnerships with ATAC Resources and Osisko Mining, opening up new avenues to grow the long-term
value of our portfolio.
FINANCIAL HIGHLIGHTS
First quarter net earnings were $679 million ($0.58 per share), compared to a net loss of $83 million
($0.07 per share) in the prior-year period. A significant improvement in net earnings was largely due
to approximately $1.125 billion of net impairment reversal s ($522 million net of tax effect and non -
controlling interest) recorded in the first quarter of 2017 , reflecting the indicative fair value of the
Cerro Casale project resulting from our divestment of 25 percent, and the associated partnership
agreement with Goldcorp . Net e arnings also benefited from lower currency translation losses
compared to the first quarter of 2016 , when the Company recorded $91 million of currency
translation losses, primarily related to Australian entities.
Adjusted net earnings 1 for the first quarter were $ 162 million ($0. 14 per share), compared to $ 127
million ($0.11 per share) in the prior -year period. Higher adjusted net earnings reflect the impact of
higher gold and copper prices, partially offset by higher depreciation, higher exploration and
evaluation expenses, and slightly higher direct mining costs.
Operating cash flow increased to $495 million, compared to $451 million in the first quarter of 2016.
Higher operating cash flow was driven by higher gold and copper prices , as well as lower interest
payments, reflecting the impact of significant debt reduction completed over the past year. These
favorable movements were partially offset by unfavorable working capital movements compared to
the prior-year period. Free cash flow 2 for the first q uarter was $161 million, compared to $181 million
in the first quarter of 2016. Lower free cash flow primarily reflects higher planned sustaining capital
expenditures in the first quarter (see page 3 for details ), as well as i ncreased project spending at
Barrick Nevada, primarily related to the development of Crossroads and the Cortez Hills lower zone,
in addition to Goldrush project expenditures. These increases were partially offset by higher
operating cash flow.
RESTORING A STRONG BALANCE SHEET
Achieving and maintaining a strong balance sheet remains a top priority. We intend to reduce our
total debt from $7.9 billion at the start of 2017, to $5 billion by the end of 2018—half of which we are
targeting this year . We will achieve this by using cash flow from operations, further portfolio
optimization, and the creation of new joint ventures and partnerships.
In the first quarter, total debt was reduced by $178 million. In early April, the company announced the
sale of 50 percent of the Veladero mine in Argentina to Shandong Gold for $960 million, the majority
of which will be allocated to debt reduction.
BARRICK FIRST QUARTER 2017 3 PRESS RELEASE
At the end of the first quarter, Barrick had a consolidated cash balance of approximately $2.3 billion.4
The Company now has less than $ 100 million in debt due before 2019. 5 About $5 billion, or 6 4
percent of our outstanding total debt of $7.8 billion, does not mature until after 2032.
OPERATING HIGHLIGHTS AND OUTLOOK
Barrick produced 1.31 million ounces of gold in the first quarter at a cost of sales of $833 per ounce, in
line with plan. This compares to 1.28 million ounces at a cost of sales of $ 810 per ounce in the prior-
year period.
All-in sustaining costs 3 in the first quarter were $772 per ounce, compared to $706 per ounce in the
first quarter of 2016. Approximately 90 percent of this increase, or roughly $58 per ounce, is a result
of higher sustaining capital expenditures compared to the prior -year period. Significant items in the
first quarter included planned c apitalized stripping at Barrick Nevada, increased expenditures at
Veladero relating to phase 4B and 5B of the leach pad, and other equipment purchases. Over the
same period, cash costs 3 decreased, from $553 per ounce in the first quarter of 2016 to $545 per
ounce in the first quarter of 2017.
Gold production in the first quarter was impacted by the timing of autoclave maintenance at the
Pueblo Viejo mine in the Dominican Republic. Hea vy rains , road closures . and power outages
associated with the El Niño weather pattern also impacted production at the Lagunas Norte mine in
Peru. Both operations remain on track to achieve their original full-year production guidance.
The Company produced 95 million pounds of copper in the first quarter, at a cost of sales of $1.73 per
pound, and all-in sustaining costs6 of $2.19 per pound. This compares to 111 million pounds, at a cost of
sales of $1.34 per pound , and all-in sustaining costs 6 of $1.97 per pou nd in the first quarter of 2016.
Lower copper production in the first quarter was primarily the result of lower production at the
Lumwana mine in Zambia, as a result of lower tonnes processed, combined with lower grades.
Please see page 29 of Barrick’s first quarter MD&A for individual operating segment performance
details.
We now expect full-year gold production of 5.3-5.6 million ounces, down from our previous range of
5.6-5.9 million ounces. A significant portion of this reduction is attributable to the anticipated sale of
50 percent of Veladero, which is expected to close at the end of the second quarter. Our updated
guidance assumes no change to Acacia’s full -year guidance as a result of the export ban on
concentrates currently affecting Acacia’s operations in Tanzania . It also assumes the resumption of
normal processing activities at Veladero in June, subject to government approval of proposed
modifications to the mine’s operating systems (see Page 4 – Veladero Update).
We continue to expect full-year cost of sales attributable to gold to be $780-$820 per ounce, and all-
in sustaining costs3 of $720-$770 per ounce.
Our copper production guidance for 2017 is unchanged at 400-450 million pounds, at a cost of sales
applicable to copper between $1.50 -1.70 per pound , and all-in sustaining costs6 of $2.10 -$2.40 per
pound.
Please see Appendix 1 of this press release for individual mine site guidance updates.
BARRICK FIRST QUARTER 2017 4 PRESS RELEASE
Gold
First Quarter
2017
Current
2017 Guidance
Original
2017 Guidance
Production7 (000s of ounces) 1,309 5,300-5,600 5,600-5,900
Cost of sales applicable to gold ($ per ounce) 833 780-820 780-820
All-in sustaining costs3 ($ per ounce) 772 720-770 720-770
Copper
Production7 (millions of pounds) 95 400-450 400-450
Cost of sales applicable to copper ($ per pound) 1.73 1.50-1.70 1.50-1.70
All-in sustaining costs6 ($ per pound) 2.19 2.10-2.40 2.10-2.40
Total Capital Expenditures8 ($ millions) 310 1,300-1,500 1,300-1,500
Veladero Update
On March 28, a coupling on a pipe carrying gold -bearing solution at the Veladero mine heap leach
facility failed. Solution released from the rupture was contained within the operating site and did not
result in any impact to the environm ent or people . The Company promptly notified San Juan
provincial authorities, who inspected the site on March 29 . On March 30, the Government of San
Juan province temporarily restricted the addition of cyanide to the Veladero mine’s heap leach
facility, pending the completion of works to strengthen and improve the mine’s operating systems.
Barrick presented its proposed work plan to San Juan provincial authorities on April 21, following
extensive consultation with both federal and provincia l officials and regulators. The provincial
government has indicated it will take approximately two weeks to review the Company’s proposals , a
process that will also include federal authorities, including the national Ministry of Environment and
Sustainable Development. Initial work on the proposed modifications to the heap leach facility has
already begun , concurrent with the review by provincial and federal authorities . Our updated
guidance assumes a resumption of normal leaching activities at the mine in June, subject to approval
by the Government of San Juan province, the lifting of operating restrictions by the San Juan
provincial court, and the resolution of regulatory and legal matters by the federal and provincial
courts (for more information about th ese matters, please see Note 17 “Contingencies” of Barrick’s
first quarter financial statements and the notes thereto). This assumption is based on our assessment
of the time required to complete the proposed modifications to the leach pad. The timing of approval
for the resumption o f leaching activities will depend on the actual progress of work, any potential
new requirements, and a final evaluation of the completed modifications by provincial authorities. In
parallel with the submission of a new technical plan for the operation, Ba rrick has also presented an
updated community investment and engagement plan to the Government of San Juan and federal
authorities for review.
On a 100 percent basis, we now expect full-year production at Veladero of 630,000-730,000 ounces
of gold , at a cost of sales of $740 -$790 per ounce , and all -in sustaining costs 3 of $890-$990 per
ounce. Barrick’s share of full -year production, assuming 50 percent ownership from July 1, is
expected to be 430,000 -480,000 ounces of gold. This compares to our original 2017 guid ance of
770,000-830,000 ounces (100 percent basis) , at a cost of sales of $750 -$800 per ounce , and all-in
sustaining costs3 of $840-$940 per ounce.
BARRICK FIRST QUARTER 2017 5 PRESS RELEASE
PORTFOLIO OPTIMIZATION AND PARTNERSHIPS
The creation of new partnerships and joint ventures is a core element of our strategy to grow free
cash flow per share over the long term. So far this year, we have entered into four new partnerships
in support of this long-term strategy.
Strategic Cooperation Agreement with Shandong
On April 6, Barrick announced that it had entered into a strategic cooperation agreement with
Shandong Gold Group Co., Ltd., the leading underground mining company in China, based in Jinan,
Shandong province. As a first step in the new partnership, Shandong Gold Mining Co., Ltd, the li sted
company of Shandong Gold Group, will acquire 50 percent of Barrick’s Veladero mine in San Juan
province, Argentina, for $960 million. As a second step, Barrick and Shandong will form a working
group to explore the joint development of the Pascua -Lama deposit. As a third step, both companies
will evaluate additional investment opportunities on the highly prospective El Indio Gold Belt on the
border of Argentina and Chile, which hosts a cluster of world -class gold mines and projects including
Veladero, Pascua-Lama, and Alturas. The transaction is expected to close at the end of the second
quarter.
Cerro Casale Joint Venture
On March 28, Barrick announced that it has reached an agreement with Goldcorp Inc. to form a new
partnership at the Cerro Casale Pro ject in Chile. Under the terms of the agreement, Goldcorp has
agreed to purchase a 25 percent interest in Cerro Casale from Barrick , as well as Kinross Gold
Corporation’s 25 percent interest, resulting in a 50/50 joint venture between Barrick and Goldcorp.
The agreement brings a fresh perspective to the project, along with the potential for synergies in the
district. It also allows us to direct capital elsewhere in our portfolio, while ensuring Barrick
shareholders retain exposure to the optionality associated with one of the largest undeveloped gold
and copper deposits in the world. The resulting increase in carrying value illustrates how Barrick ’s
partnership approach is surfacing value associated with otherwise dormant options within our asset
portfolio.
ATAC Resources Exploration Earn-In and Private Placement
On April 10, ATAC Resources announced that it had reached an earn-in agreement with Barrick at
ATAC’s Orion project in the Yukon, Canada. The Orion Project hosts the Orion and Anubis Carlin-type
gold discoveries, in addition to eight other early stage Carlin -type gold prospects. These form part of
the largest Carlin-type mineralized system in North America outside of Nevada. Barrick has extensive
experience and expertise with Carlin-type deposits in Nevada. Barrick has the option to spend C $35
million over five years to acquire a 60 percent interest in the project, after which the companies
would form a joint venture. We will then have the option to earn an additional 10 percent by spen ding
a further C$20 million at the project . Barrick will also purchase ATAC common shares through a
charity flow -through private placement for a total cost to Barrick of C$6.3 million, increasing
Barrick’s shareholding in ATAC from approximately 9.2 percent to 19.9 percent.
Osisko Mining Exploration Earn-In
On March 27, Osisko Mining Inc. announced that it had commenced its previously announced earn-in
agreement with Barrick on the Kan prop erty in northern Québec. Under the earn-in agreement,
Barrick must commit $15 million in exploration expenditures by December 31, 20 20, to earn a 70
percent interest in the Kan property, subject to certain annual expenditure thresholds . Following the
formation of a joint venture, Barrick may earn a further five percent interest by funding an additional
BARRICK FIRST QUARTER 2017 6 PRESS RELEASE
$5 million of project level expenditures. The Labrador Trough in northern Québec is home to
numerous well known iron ore deposits and base metal prospects . We believe it has been under
appreciated for its gold potential, and could develop into a core mineral district for Barrick . The
partnership will leverage the on-the-ground experience and expertise of Osisko in this region , with
Barrick Exploration team members embedded at the project.
SUSTAINABILTIY BRIEFING
Barrick will hold its first Sustainability Briefing for investors on Tuesday, May 9. Speakers will include
Board Member and Chair of our Corporate Responsibility Committee, Nancy Lockhart, along with our
Chief Operating Officer, Chief Sustainabil ity Officer , and other leaders. Please join us for the live
webcast from 10 a.m. to 12 p.m. at www.barrick.com.
TECHNICAL INFORMATION
The scientific and technical information contained in this press release has been reviewed and
approved by Steven Haggarty, P. Eng., Senior Director, Metallurgy of Barrick , who is a “Qualified
Person” as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects.
BARRICK FIRST QUARTER 2017 7 PRESS RELEASE
APPENDIX 1 — Updated 2017 Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS
Production
(millions of ounces)
Cost of sales
($ per ounce)
All-in sustaining
costs3
($ per ounce)
Cash costs3
($ per ounce)
Barrick Nevada 2.180-2.260 820-860 630-680 480-510
Pueblo Viejo (60%) 0.625-0.650 650-680 540-570 420-440
Veladero 0.430-0.480 740-790 890-990 520-560
Lagunas Norte 0.380-0.420 710-780 540-600 430-470
Sub-total 3.600-3.800 770-810 650-710 470-500
Acacia (63.9%) 0.545-0.575 860-910 880-920 580-620
KCGM (50%) 0.360-0.400 750-790 680-720 600-630
Turquoise Ridge (75%) 0.260-0.280 550-600 630-710 440-470
Porgera (47.5%) 0.240-0.260 780-840 900-970 650-700
Hemlo 0.205-0.220 830-890 890-990 660-710
Golden Sunlight 0.035-0.050 900-1,200 950-1,040 900-950
Total Gold 5.300-5.6009 780-820 720-770 510-535
COPPER PRODUCTION AND COSTS
Production
(millions of pounds)
Cost of sales
($ per
pound)
All-in sustaining
costs6
($ per pound)
C1 cash costs6
($ per pound)
Zaldívar (50%) 120-135 2.00-2.20 1.90-2.10 ~1.50
Lumwana 250-275 1.20-1.40 2.10-2.30 1.40-1.60
Jabal Sayid (50%) 35-45 2.10-2.80 2.10-2.60 1.50-1.90
Total Copper 400-4509 1.50-1.70 2.10-2.40 1.40-1.60
CAPITAL EXPENDITURES
($ millions)
Mine site sustaining 1,050-1,200
Project 250-300
Total Capital Expenditures 1,300-1,500
BARRICK FIRST QUARTER 2017 8 PRESS RELEASE
APPENDIX 2 — 2017 Outlook Assumptions and Economic Sensitivity Analysis
2017 Guidance
Assumption
Hypothetical
Change
Impact on
Revenue
(millions)
Impact on
Cost of sales
(millions)
Impact on
All-in sustaining
costs3,6
Gold revenue, net of royalties $1,050/oz +/- $100/oz +/- $415 +/- $11 +/- $3/oz
Copper revenue, net of royalties10 $2.25/lb + $0.50/lb + $166 + $11 + $0.03/lb
Copper revenue, net of royalties10 $2.25/lb - $0.50/lb - $133 - $9 - $0.03/lb
Gold all-in sustaining costs3
WTI crude oil price11 $55/bbl +/- $10/bbl n/a +/- $16 +/- $4/oz
Australian dollar exchange rate 0.75 : 1 +/- 10% n/a +/- $22 +/- $5/oz
Canadian dollar exchange rate 1.32 : 1 +/- 10% n/a +/- $25 +/- $6/oz
Copper all-in sustaining costs6
WTI crude oil price11 $55/bbl +/- $10/bbl n/a +/- $4 +/- $0.01/lb
Chilean peso exchange rate 675 : 1 +/- 10% n/a +/- $5 +/- $0.01/lb
ENDNOTE 1
"Adjusted net earnings" and "adjusted net earnings per share" are non -GAAP financial performance measures. Adjusted net
earnings excludes the following from net earnings: certain impairment charges (reversals) related to intangibles, goodwill,
property, plant and equipment, and investments; gains (losses) and other one-time costs relating to acquisitions or dispositions:
foreign currency translation gains (losses); significant tax adjustments not related to current period earnings ; unrealized gains
(losses) on non-hedge derivative instruments; and the tax effect and non-controlling interest of these items. The Company uses
this measure internally to evalu ate our underlying operating performance for the reporting periods presented and to assist
with the planning and forecasting of future operating results. Barrick believes that adjusted net earnings is a useful measur e of
our performance because these adjus ting items do not reflect the underlying operating performance of our core mining
business and are not necessarily indicative of future operating results. Adjusted net earnings and adjusted net earnings per
share are intended to provide additional informat ion only and do not have any standardized meaning under IFRS and may not
be comparable to similar measures of performance presented by other companies. They should not be considered in isolation
or as a substitute for measures of performance prepared in ac cordance with IFRS. Further details on these non-GAAP measures
are provided in the MD&A accompanying Barrick's financial statements filed from time to time on SEDAR at www.sedar.co m and
on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to Net Earnings per Share, Adjusted Net Earnings and Adjusted Net Earnings per Share
($ millions, except per share amounts in dollars) For the three months ended March 31
2017 2016
Net earnings (loss) attributable to equity holders of the Company $ 679 $ (83)
Impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and investments1 (1,125) 1
Acquisition/disposition (gains)/losses 3 8
Foreign currency translation (gains)/losses 3 139
Significant tax adjustments (3) 51
Other expense adjustments 6 68
Unrealized gains on non-hedge derivative instruments 3 (6)
Tax effect and non-controlling interest2 596 (51)
Adjusted net earnings $ 162 $ 127
Net earnings (loss) per share3 0.58 (0.07)
Adjusted net earnings per share3 0.14 0.11
1 Net impairment reversals for the current year primarily relate to impairment reversals at the Cerro Casale project upon recla ssification of the project’s net assets as held -
for-sale as at March 31, 2017.
2 Tax effect and non-controlling interest primarily relates to the impairment reversals at the Cerro Casale project discussed above.
3 Calculated using weighted average number of shares outstanding under the basic method of earnings per share.