First Quarter Report 2018
FIRST QUARTER REPORT 2018
All amounts expressed in U.S. dollars unless otherwise indicated
Barrick Reports First Quarter 2018 Results
• Barrick reported first quarter net earnings attributable to equity holders ("net earnings") of $158
million ($0.14 per share), and adjusted net earnings1 of $170 million ($0.15 per share).
• The Company reported first quarter revenues of $1.79 billion, net cash provided by operating activities
("operating cash flow") of $507 million, and free cash flow2 of $181 million.
• Gold production in the first quarter was 1.05 million ounces, at a cost of sales applicable to gold3
of $878 per ounce, all-in sustaining costs4 of $804 per ounce, and cash costs4 of $573 per ounce.
• Copper production was 85 million pounds, at a cost of sales applicable to copper3 of $2.07 per pound,
all-in sustaining costs5 of $2.61 per pound, and C1 cash costs5 of $1.88 per pound.
• We continue to expect full-year gold production of 4.5-5.0 million ounces, at a cost of sales3 of $810-
$850 per ounce, all-in sustaining costs4 of $765-$815 per ounce, and cash costs4 of $540-$575 per
ounce.
• Full-year copper production guidance remains 385-450 million pounds, at a cost of sales3 of $1.80-
$2.10 per pound, all-in sustaining costs5 of $2.30-$2.60 per pound, and C1 cash costs5 of $1.55-$1.75
per pound.
• During the first quarter, S&P Global Ratings and Moody's Investors Service upgraded Barrick's credit
rating, citing significant improvements in free cash flow generation and liquidity, supported by the
Company's low-cost portfolio and favorable geopolitical risk profile.
• The Company does not intend to sell additional assets for purposes of debt reduction, and will use cash
on hand and cash flow from operations for future debt repayments. Proceeds from any future portfolio
optimization will be used to enhance our project pipeline, or returned to shareholders.
• Nevada growth projects remain on schedule and within budget. The Fourmile exploration program in
the Cortez district is progressing well, with encouraging initial assay results.
TORONTO, April 23, 2018 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) ("Barrick" or the "Company")
today reported first quarter results for the period ending March 31, 2018. Gold production and costs for the
quarter were in line with expectations, with higher production and lower costs expected in the second half of
2018 driven by the timing of capital expenditures, higher throughput, and improved grades. Despite lower
production levels, adjusted net earnings, operating cash flow, and free cash flow all increased compared to the
prior-year period, primarily driven by higher gold prices.
Our priorities for 2018 are focused on positioning Barrick to grow free cash flow per share over the long term
from a portfolio of high-quality, long-life gold assets in the Americas, with an increasing focus on organic growth
in Nevada and the Dominican Republic. At our existing operations, our goal is to maintain industry-leading
BARRICK FIRST QUARTER 2018 2 PRESS RELEASE
margins through a continuous cycle of optimization, pushing our mines to achieve greater levels of safety,
efficiency, and productivity, while working to mitigate increasing costs associated with more complex ore types
and a shift to more underground mining. In addition, we are making investments in digital technology and
innovation that will allow us to identify and accelerate further operational improvements across our portfolio.
OUTLOOK
We continue to expect full-year gold production of 4.5-5.0 million ounces, at a cost of sales3 of $810-$850 per
ounce, and all-in sustaining costs4 of $765-$815 per ounce. As previously reported, the power plant that supplies
electricity to the Porgera Joint Venture mine was damaged during an earthquake that struck Papua New Guinea
on February 26, 2018. The mine's processing plant is currently operating at approximately 25 percent capacity,
supported by an existing on-site diesel power station, as well as portable generators. At this time, the operation
expects to increase processing capacity in stages, with full capacity anticipated by the fourth quarter. While the
impact of this event to production at Porgera remains under evaluation, the Company's consolidated 2018 gold
production guidance remains unchanged. Business interruption insurance is expected to mitigate a significant
portion of earnings lost as a result of this event.
We expect gold production in the second quarter to be roughly in line with the first quarter at around one
million ounces, mainly due to the impact of a scheduled maintenance shutdown at the Barrick Nevada roaster.
Sustaining capital expenditures are expected to be higher in the second quarter relative to the first quarter as
the North American construction season ramps up for major sustaining projects such as tailings dam raises.
Capitalized stripping at Barrick Nevada, Pueblo Viejo, and Veladero, and increased underground development
at Barrick Nevada, are also expected to be higher in the second quarter.
The completion of development work, stripping, and maintenance in the second quarter, along with access to
higher grades in the second half of the year, is expected to drive stronger production in the third and fourth
quarters, at lower costs compared to the first half of 2018. In particular, we expect higher production from
Barrick Nevada and Pueblo Viejo in the second half of the year, driven by higher grades and throughput.
We continue to expect full-year copper production of 385-450 million pounds, at a cost of sales3 of $1.80-
$2.10 per pound, and all-in sustaining costs5 of $2.30-$2.60 per pound. Lower realized grades in the first quarter
at the Lumwana mine are expected to steadily improve over the course of 2018.
Total attributable capital expenditure guidance6 for 2018 remains unchanged at $1.40-$1.60 billion, including
mine site sustaining capital7 of $0.95-$1.10 billion, and project capital expenditures8 of $450-$550 million.
FINANCIAL HIGHLIGHTS
The Company reported net earnings of $158 million ($0.14 per share) for the first quarter, compared to net
earnings of $679 million ($0.58 per share) in the prior-year period. Lower net earnings are primarily the result
of a net impairment reversal of $1.13 billion ($522 million net of tax and non-controlling interest) recorded in
the first quarter of 2017, in connection with our divestment of 25 percent of the Cerro Casale project (Norte
Abierto).
Adjusted net earnings1 for the first quarter rose by five percent to $170 million ($0.15 per share), compared to
$162 million ($0.14 per share) in the first quarter of 2017. The increase in adjusted net earnings was primarily
due to higher realized gold prices9 and lower depreciation.
BARRICK FIRST QUARTER 2018 3 PRESS RELEASE
Operating cash flow for the first quarter was $507 million, compared to $495 million in the prior-year period.
Higher operating cash flow was driven by higher realized gold prices9, lower cash taxes and interest paid, and
lower general and administrative expenses related to stock-based compensation compared to the first quarter
of 2017.
Free cash flow2 for the first quarter was $181 million, compared to $161 million in the prior-year period, reflecting
slightly higher operating cash flows, combined with slightly lower capital expenditures. In the first quarter of
2018, capital expenditures on a cash basis were $326 million, compared to $334 million in the prior-year period.
BALANCE SHEET UPDATE
Over the past three years, we have reduced our total debt by more than 50 percent, from $13.1 billion at the
end of 2014, to $6.4 billion by the end of 2017. In the first quarter of 2018, both S&P Global Ratings and
Moody's Investors Service upgraded Barrick's credit rating, citing significant improvements in free cash flow
generation and liquidity, supported by the Company's low-cost portfolio and favorable geopolitical risk profile.
Our goal remains to reduce our total debt from $6.4 billion at present, to around $5 billion by the end of 2018.
To achieve this, we will use cash flow from operations, and cash on hand. Having materially strengthened the
balance sheet, Barrick does not intend to sell further assets for the purposes of debt repayment. Any proceeds
resulting from additional portfolio optimization will be reinvested back into the business to enhance our project
pipeline, or returned to shareholders.
At the end of the first quarter, Barrick had a consolidated cash balance of approximately $2.4 billion.10 The
Company has less than $100 million in debt due before 2020.11 More than three-quarters of our outstanding
total debt of $6.4 billion does not mature until after 2032.
OPERATING HIGHLIGHTS
Barrick produced 1.05 million ounces of gold in the first quarter of 2018 at a cost of sales3 of $878 per ounce,
and all-in sustaining costs4 of $804 per ounce, in line with expectations. This compares to gold production of
1.31 million ounces in the first quarter of 2017, at a cost of sales3 of $833 per ounce, and all-in sustaining costs4
of $772 per ounce.
Lower gold production compared with the prior-year period was expected as a result of the sale of 50 percent
of the Veladero mine on June 30, 2017, lower throughput at Acacia as a result of reduced operations at
Bulyanhulu, lower grades processed through the oxide mill and roaster at Barrick Nevada, and lower throughput
and grade at Hemlo and Lagunas Norte. An earthquake that damaged power infrastructure in Papua New
Guinea also impacted production at Porgera during the quarter.
On a per ounce basis, cost of sales was five percent higher than the prior-year period due to the impact of fewer
ounces sold, and higher royalty expenses as a result of an increase in realized gold prices.9 Cost of sales was
also impacted by higher direct mining costs, primarily due to inflation in fuel, labor, and maintenance costs,
partially offset by Best-in-Class operational and efficiency improvements. Higher all-in sustaining costs4 primarily
reflect a planned increase in mine site sustaining capital expenditures on a per ounce basis, combined with
higher direct mining costs.
The Company produced 85 million pounds of copper in the first quarter, at a cost of sales3 of $2.07 per pound,
and all-in sustaining costs5 of $2.61 per pound. This compares to 95 million pounds, at a cost of
sales of $1.73 per pound, and all-in sustaining costs5 of $2.19 per pound, in the first quarter of 2017.
BARRICK FIRST QUARTER 2018 4 PRESS RELEASE
Copper production for the first quarter of 2018 was 11 percent lower than the prior-year period, primarily due
to lower production at Lumwana as a result of mill shutdowns and lower grades, and at Zaldívar due to fewer
tonnes placed on the leach pad. This was partially offset by higher production at Jabal Sayid, driven by higher
grade, throughput, and recoveries.
On a per pound basis, cost of sales applicable to copper3 increased as a result of higher processing and
maintenance costs at Lumwana, and higher unit production costs at Zaldívar, partially offset by lower production
costs at Jabal Sayid. Copper all-in sustaining costs5 were higher than the prior-year period, reflecting higher cost
of sales combined with higher mine site sustaining capital expenditures at Zaldívar and Lumwana.
Please see page 41 of Barrick's first quarter MD&A for individual operating segment performance details. Detailed
mine site guidance information can be found in Appendix 1 of this press release.
Gold First Quarter 2018 2018 Guidance
Production12 (000s of ounces) 1,049 4,500 - 5,000
Cost of sales applicable to gold3 ($ per ounce) 878 810 - 850
Cash costs4 ($ per ounce) 573 540 - 575
All-in sustaining costs4 ($ per ounce) 804 765 - 815
Copper
Production12 (millions of pounds) 85 385 - 450
Cost of sales applicable to copper3 ($ per pound) 2.07 1.80 - 2.10
C1 cash costs5 ($ per pound) 1.88 1.55 - 1.75
All-in sustaining costs5 ($ per pound) 2.61 2.30 - 2.60
Total Attributable Capital Expenditures6 ($ millions) 326 1,400 - 1,600
EXPLORATION AND GROWTH
Nevada remains the focus of our 2018 exploration programs and project development activities. Our strategy
is focused on growing free cash flow from this core district over the long term through organic project
development, growing our gold resource base through exploration, and optimizing the processing of existing
stockpiles.
Nevada growth projects at Turquoise Ridge, Goldrush, and Cortez Deep South are now in execution, and are
expected to begin contributing to production from 2021. Our mine exploration programs are focused on
replacing gold reserves and identifying new resources which, in many cases, can be quickly incorporated into
mine plans, driving near-term improvements in production and cash flow. In addition, Barrick Nevada currently
has approximately 4.8 million ounces of proven gold reserves in existing stockpiles. To unlock the full potential
of our Nevada asset base, the Company is evaluating an increase in processing capacity that would accommodate
new production from organic projects, and bring forward production from stockpiles, increasing overall
production levels from Nevada.
BARRICK FIRST QUARTER 2018 5 PRESS RELEASE
NEVADA, U.S.A.
Turquoise Ridge (75 percent Barrick)13 - Shaft sinking preparation underway
Barrick is constructing a third shaft at Turquoise Ridge, which will allow the mine to roughly double annual
production to more than 500,000 ounces per year (100 percent basis), at an average cost of sales of around
$720 per ounce, and average all-in sustaining costs4 of roughly $630 per ounce. The contract for shaft sinking
was awarded to Thyssen Mining during the first quarter, and mobilization planning is now underway.
Procurement of long-lead-time items has begun, with major components such as the shaft hoist now ordered.
Construction during the first quarter centered on well drilling activities, electrical distribution, and mine site
utility construction and activation. The capital cost for this project is estimated to be $300-$325 million (100
percent basis). Initial production from the new shaft is expected to begin in 2022, with sustained production
from 2023. At 15.56 grams per tonne, Turquoise Ridge has the highest average reserve grade in the Company's
operating portfolio, and among the highest in the gold industry.
Goldrush - Portal pad construction completed, decline development underway
When in full operation, the Goldrush underground project is expected to produce approximately 500,000 ounces
of gold per year, at a cost of sales3 of roughly $750 per ounce, and all-in sustaining costs4 of approximately
$640 per ounce. Portal pad construction for twin declines was completed in the first quarter of 2018, with
decline construction now underway. Decline construction, detailed engineering, and permitting are expected
to take place between 2018 and 2021, with construction and initial production expected between 2021 and
2022, and sustained production expected from 2023. The exploration twin declines will provide access to the
orebody at depth, which will enable further exploration drilling, as well as the conversion of existing resources
to reserves. These declines can be converted into production declines in the future. Goldrush currently has
proven and probable gold reserves of 1.5 million ounces14, and measured and indicated gold resources of 9.4
million ounces14, with significant potential to identify additional resources once underground access to drill the
deposit is established. Ongoing surface drilling in the Red Hill zone of the deposit in 2018 is also expected to
support additional resource conversion.
Cortez Deep South15 - Rangefront east decline completed, infrastructure under construction
The Deep South project is expected to contribute approximately 300,000 ounces of annual gold production
when fully ramped up between 2024 and 2028, at a cost of sales3 of $650 per ounce, and all-in sustaining
costs4 of $580 per ounce. Deep South will utilize infrastructure which has already been approved under current
plans to expand mining in the Lower Zone of the Cortez underground mine, including the new Rangefront twin
declines and other underground infrastructure already under construction. The east decline is now complete,
breaking through to the underground mine approximately two weeks ahead of schedule on March 18. The
west decline is 38 percent complete and advancing according to schedule. Permitting for Deep South was
initiated in 2016 with the submission of an amendment to the current Mine Plan of Operations to the Bureau
of Land Management. A record of decision on an Environmental Impact Statement is expected in the second
half of 2019, followed by two years of construction, with initial production from Deep South in 2022.
Fourmile - More high grade drill results increase confidence
The Fourmile exploration project is located one to three kilometers north of the Goldrush deposit, and is the
focus of our 2018 greenfield exploration program in Nevada. Drilling to date has intersected mineralization well
above the average grade of the measured and indicated resources at Goldrush. We are increasingly confident
that Fourmile and Goldrush form part of a seven-kilometer-long mineralized system, similar in length to the
mineralization at Goldstrike. In 2018, we plan to drill 24 holes at Fourmile—with five holes now completed,
and four in progress. Assay results completed in 2018 include a hole with 9.1 meters grading 40.9 grams per
tonne of gold. Please see endnote 16 for a significant intercepts table including recent Fourmile drilling.
BARRICK FIRST QUARTER 2018 6 PRESS RELEASE
ARGENTINA/CHILE
Pascua-Lama
Over the past year, Barrick has been studying the optimization of the Pascua-Lama project. Work to date on
the prefeasibility study for a potential underground project indicates that while the concept may be feasible
from a technical standpoint, it does not meet Barrick's investment criteria. Based on this, and taking into
consideration other risk factors, the Company has suspended work on the prefeasibility study, and will focus
on adjusting the project closure plan for surface infrastructure on the Chilean side of the project, in line with
legal requirements. Barrick will continue to evaluate opportunities to de-risk the project while maintaining
Pascua-Lama as an option for development in the future if economics improve, and related risks can be mitigated.
ACACIA MINING PLC UPDATE
Discussions between the Government of Tanzania and Barrick concerning the proposed framework agreement
for Acacia Mining plc's operations in Tanzania have been constructive and continue to progress. Detailed legal
agreements concerning the implementation of the conceptual framework are now being drafted. Barrick has
continued to engage with independent directors of Acacia during this process, and Acacia is supporting Barrick
in its ongoing discussions. We continue to target the first half of 2018 for the completion of a detailed proposal
for review by Acacia. Under the proposed framework agreement, economic benefits generated by Acacia's
operations would be split with the Government of Tanzania on a 50/50 basis. The Government's portion would
be delivered primarily in the form of royalties, taxes, and a 16 percent free carried interest in Acacia's Tanzanian
operations, in line with the country's new mining law.
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; Rick Sims, Registered Member SME, Vice
President, Reserves and Resources of Barrick; and Robert Krcmarov, FAusIMM, Executive Vice President,
Exploration and Growth of Barrick—each a "Qualified Person" as defined in National Instrument 43-101 -
Standards of Disclosure for Mineral Projects.
BARRICK FIRST QUARTER 2018 7 PRESS RELEASE
Appendix 1
2018 Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS
Production
(000s ounces)
Cost of sales3
($ per ounce)
All-in
sustaining costs4
($ per ounce)
Cash costs4
($ per ounce)
Barrick Nevada 2,000 - 2,255 760 - 810 610 - 660 470 - 530
Turquoise Ridge (75%) 240 - 270 670 - 720 650 - 730 580 - 620
Pueblo Viejo (60%) 585 - 615 720 - 750 590 - 620 425 - 450
Veladero (50%) 275 - 330 970 - 1,110 960 - 1,100 560 - 620
Lagunas Norte 230 - 270 780 - 910 670 - 780 420 - 490
Porgera (47.5%) 230 - 255 950 - 1,000 950 - 1,000 780 - 830
Kalgoorlie (50%) 350 - 400 775 - 825 750 - 800 640 - 690
Acacia (63.9%) 275 - 305 970 - 1,020 935 - 985 690 - 720
Hemlo 200 - 220 860 - 920 975 - 1,075 740 - 790
Golden Sunlight 35 - 50 1,100 - 1,200 1,290 - 1,460 1,130 - 1,230
Total Gold 4,500 - 5,00017 810 - 850 765 - 815 540 - 575
COPPER PRODUCTION AND COSTS
Production
(millions of pounds)
Cost of sales3
($ per pound)
All-in
sustaining costs5
($ per pound)
C1 cash costs5
($ per pound)
Zaldívar (50%) 115 - 130 2.30 - 2.50 2.05 - 2.25 ~1.70
Lumwana 230 - 265 1.65 - 1.90 2.50 - 2.80 1.65 - 1.90
Jabal Sayid (50%) 40 - 55 1.85 - 2.50 1.70 - 2.30 1.40 - 1.80
Total Copper 385 - 45017 1.80 - 2.10 2.30 - 2.60 1.55 - 1.75
CAPITAL EXPENDITURES
($ millions)
Mine site sustaining 950 - 1,100
Project 450 - 550
Total Attributable Capital Expenditures6 1,400 - 1,600
BARRICK FIRST QUARTER 2018 8 PRESS RELEASE
Appendix 2
2018 Outlook Assumptions and Economic Sensitivity Analysis
2018 Guidance
Assumption
Hypothetical
Change
Impact on
Revenue
(millions)
Impact on
Cost of sales3
(millions)
Impact on
All-in sustaining
costs4,5
Gold revenue, net of royalties $1,200/oz +/- $100/oz +/- $363 +/- $10 +/- $3/oz
Copper revenue, net of royalties18 $2.75/lb + $0.50/lb + $163 + $12 + $0.04/lb
Copper revenue, net of royalties18 $2.75/lb - $0.50/lb - $137 - $10 - $0.03/lb
Gold all-in sustaining costs4
WTI crude oil price19 $55/bbl +/- $10/bbl n/a +/- $20 +/- $5/oz
Australian dollar exchange rate 0.75 : 1 +/- 10% n/a +/- $22 +/- $6/oz
Argentine peso exchange rate 18.35 : 1 +/- 10% n/a +/- $11 +/- $3/oz
Canadian dollar exchange rate 1.25 : 1 +/- 10% n/a +/- $26 +/- $7/oz
Copper all-in sustaining costs5
WTI crude oil price19 $55/bbl +/- $10/bbl n/a +/- $3 +/- $0.06/lb
Chilean peso exchange rate 650 : 1 +/- 10% n/a +/- $7 +/- $0.02/lb