Further Update Concerning Acacia Mining plc – Situation in Tanzania and Review of Acacia Mine Plans
PRESS RELEASE
NYSE : GOLD TSX : ABX
Further Update Concerning Acacia Mining plc –
Situation in Tanzania and Review of Acacia Mine
Plans
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION
FOR IMMEDIATE RELEASE
Toronto, June 18, 2 019 – Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) (“Barrick” or the
“Company”) today provides the following further update in relation to Acacia Mining plc (“Acacia”).
Background
On May 21, 2019 Barrick announced that it had met with Directors and senior management of Acacia and
presented a proposal for consideration by the independent directors of Acacia (“Independent Directors”) to
acquire all of the Acacia shares it does not already own through a share for share exchange of 0.153 Barrick
shares for each ordinary share of 10 pence each in Acacia (the “Proposal”). On the basis of the market
closing price of a Barrick share on the New York Stock Exchange on June 17, 2019 and the 410,085,499
Acacia ordinary shares in issue on that date this implies a value for Acacia of US$887.8 million and total
consideration to the minority shareholders of Acacia of US$320.1 million.
The Proposal represents a premium of 14.4% to the closing price of 151 pence per Acacia share on May
20, 2019 (the last trading day before announcement of the Proposal). The value for Acacia implied by the
Proposal has increased from US$787 million at the date of announcement of the Proposal to US$887.8
million as at June 17, 2019, an increase of 12.8% based on movements in the share price.1
As has been widely reported, for the past two years, Barrick has been endeavoring to seek a settlement of
Acacia’s disputes with the Government of Tanzania (the “GoT”) and to find a workable tax and regulatory
framework for Acacia going forward. Due to requirements of the GoT, Acacia has not been able to
participate in these meetings, but Barrick has been working in good faith with the consent and support of
Acacia and the Independent Directors. Barrick has provided regular updates to the Independent Directors
and Acacia management as well as the opportunity to review and comment on documentation flowing from
these negotiations. The negotiations with the GoT have advanced to the point where draft documentation
now has been initialed by the GoT, albeit with a number of substantive issues still outstanding.
The GoT has, however, now made it clear that it is not prepared to enter into settlement agreements directly
with Acacia. In Barrick’s view, it is now clear that the relationship of Acacia with the GoT has been so
damaged by the events that led to the concentrate ban being imposed by the GoT in March 2017 and by
the subsequent arbitration proceedings initiated by Acacia against the GoT, that it is no longer possible for
1 Based on the market closing prices of the Acacia shares and Barrick shares on the London Stock Exchange and the New York Stock
Exchange respectively on 20 May 2019 (the last trading day before announcement of the Proposal) and 17 June 2019 (the last trading
day before this announcement) and the exchange rate on those dates of US$1/£ 0.786 and US$1/£0.798, respectively. The market
prices of the Acacia and Barrick shares are the closing middle market quotations as derived from Bloomberg.
BARRICK GOLD CORPORATION PRESS RELEASE
Acacia to continue to fun ction as an independent public company, with substantially all of its value
represented by assets in Tanzania.
Barrick has therefore proposed a solution which Barrick believes represents fair value for Acacia and is in
the best interests of Acacia and its minority shareholders. The Proposal seeks to preserve, to the extent
possible, the value of the Acacia assets and to give minority shareholders of Acacia the ability to benefit
from any future potential upside in the Acacia assets and Barrick’s broader portfolio through ownership of
Barrick shares.
Update on the status of discussions
Barrick’s discussions with the Independent Directors in relation to the Proposal are continuing. Barrick
considers that Acacia shareholders should be provided with further information in relation to the
circumstances which led to Barrick presenting the Proposal to the Independent Directors and why it
considers that the Proposal reflects fair value. In issuing this announcement Barrick is providing further
information concerning the status of negotiations with the GoT and the detailed technical assessments of
the Acacia mine plans that have been undertaken by Barrick, and which underpin Barrick’s view on the
fairness of the Proposal.
GoT unwilling to enter into settlement with Acacia
As set out in the announcements made by Barrick and Acacia on May 21 and 22, 2019, the GoT negotiating
team has written to Acacia’s three Tanzanian operating companies (the “TMCs”) to indicate that the GoT is
resolved that it will not proceed to execute final agreements for the resolution of Acacia’s disputes if Acacia
is one of the counterparties to the agreements. Whil e a basis for a settlement has been developed, the
terms have not yet been finalized and therefore still carry significant risk. Importantly, as highlighted by
statements made by a GoT spokesperson and prominently reported in Tanzanian press, “the Government
does not want the presence of Acacia in any form in the country ”2 and “the Government has demanded
that under no circumstances can Acacia be party to the agreements” 3.
Draft settlement and sustainable framewo rk for future operations are expected to result in
significant value transfer to GoT
The key principle of the draft settlement agreements under discussion is that going forward the GoT and
the TMCs will share the economic benefits derived from the Tanzanian mines on a 50/50 basis, based on
the life of mine plans of the TMCs. The GoT will receive its share of economic benefits through taxes,
royalties, fees and other fiscal levies and through the GoT’s 16% free carried interest in all distributions
(including shareholder loan repayments) from the TMCs and a new Tanzanian management company. The
50/50 sharing arrangement will be reviewed annually to seek to ensure that the actual and projected sharing
of economic benefits is in accordance with the 50/50 princi ple. The agreements also provide for payment
by the Acacia group of the aggregate sum of US$300 million in consideration for the full, final and
comprehensive settlement of all existing disputes between the GoT and the Acacia group including all
liability to taxation and a waiver of actual or potential claims on a mutual basis. This US$300 million payment
is outside of (and therefore not taken into account for the purposes of) the 50/50 sharing of the economic
benefits over time. The draft settlement does involve a significant value transfer from Acacia to the GoT but
this has been critical to agreeing potential draft settlement terms with the GoT and the creation of a viable
operating framework for the TMCs going forward.
2 The Citizen ‘Barrick to force Acacia takeover’ 23 May 2019.
3 Daily News ‘Solve Acacia or no deal’ 23 May 2019.
BARRICK GOLD CORPORATION PRESS RELEASE
Operating environment and loss of social license
The operating environment in Tanzania is increasingly challenging for the TMCs and there are no signs
that this situation is improving. Indeed, Barrick’s own assessment is that the situation may deteriorate
further if no near-term settlement can be secured. Examples of how difficult the operating environment has
become include:
• Export ban: the continuing ban on the export of metallic mineral concentrates announced by the
GoT in March 2017
• Bulyanhulu on care & maintenance: Bulyanhulu remains on care and maintenance, other than
some reprocessing of tailings
• Criminal charges and detentions: Criminal charges have been brought against the TMCs in
Tanzania and against three current Acacia employees and a former employee. Three of those
individuals charged continue to be held in custody under non-bailable offences
• CEO unable to enter Tanzania: Barrick understands that the Interim CEO of Acacia has not been
able to visit Tanzania since October 2018 and that no one from the senior management or Boar d
of the Company has been able to engage with the GoT at a senior governmental level regarding
the issues in dispute between Acacia and the GoT
• Environmental investigations: there remains the threat of additional environmental penalties and
environmental protection orders being levied in relation to North Mara
Barrick believes that unless a solution is found to the current impasse in the short term there is the real risk
of catastrophic loss of value for all stakeholders, and that the solution it has prop osed to the Independent
Directors of Acacia represents the only credible option to preserve, to the extent possible, the value of
Acacia’s assets.
Barrick’s view of Acacia’s mine plans
As part of the negotiations with the GoT , and, specifically, to ensure a thorough understanding of the
economic implications of the settlement terms and resulting fiscal regime, Barrick has had the opportunity
to undertake detailed due diligence on the Acacia assets. As part of this, Barrick’s technical team reviewed
Acacia’s current mine plans, including the mine plan supporting the Bulyanhulu optimization study, and
related financial models, examined the mines’ historic performance, and conducted site visits to all three
mines. As a result of this work, the Barrick technical team, which comprised several Qualified Persons (as
defined in NI 43- 101)4, has identified significant risks inherent in these operations and concluded that
certain assumptions made by Acacia were not appropriately risked or supportable and that adjustments
should be made.
Bulyanhulu
• Resource uncertainty: resource uncertainty has been identified as a key area of concern. The
Acacia mine plan for Bulyanhulu relies upon the Deep West Zone, the majority of which is currently
classified as inferred resources and assumes substantial conversion of these inferred resources
and homogeneity of the ore body. These assumptions have been made using an average of 200
meter spaced drill data, with no physical drill core made available to Barrick to confirm assumptions
made. Given minimal drill data, significant uncertainties remain around size, grade, homogeneity
and the geotechnical stress regime of this Deep West portion of the ore body. Barrick considers
that it would be more appropri ate to assume a 50% conversion rate and 20% dilution of the Deep
West inferred resources, which reflects the expected variability based upon the historic conversion
rate of inferred resources to reserves in the upper areas of the orebody.
4 National Instrument 43-101 – Standards of Disclosure for Mineral Projects is a national instrument setting out the standards of
disclosure for mineral projects by Canadian issuers. Acacia reports its mineral resources and mineral resources estimates in
compliance with NI-43-101. A Qualified Person is an individual who is an engineer or geoscientist with at least five years of experience
in mineral exploration, mineral development or mineral project assessment and has experience relevant to the subject matter, and is
in good standing with a professional association.
BARRICK GOLD CORPORATION PRESS RELEASE
• Grade continuit y: Acacia’s mine plan assumes there is a high continuity of grade in the Deep
West orebody with insufficient drill data to support this assumption. Barrick considers it appropriate
to reduce the average grade of the Deep West Zone, resulting in a LOM grade of 8.6g/t to reflect
what has been achieved historically in the upper zone, given the low intensity of drilling (average
200 meter drill spacing) and the fact that no drill core from the Deep West Zone was made available
to Barrick to geologically support a significant uplift in grade.
• Throughput rates: Acacia’s mine plan also assumes that Bulyanhulu can achieve underground
ore hoisting rates of 1,000 - 1,100 kt/year. This throughput is significantly higher than the annual
average of 928kt over the last five full years of operation 5, which was achieved at significantly
shallower depths, mainly above the base of the shaft. Barrick considers it would be appropriate to
cap underground ore production rates at 850 - 900 kt/year (during steady state underground (“UG”)
production) due to the risks presented by the primary UG production area being situated at 1.7-
2.6km below surface, well below historic production levels, and below the current mine shaft (1.1km
depth). In Barrick’s view, this poses underground tr ucking bottlenecks and geotechnical stress
restrictions which Barrick understands have not yet been fully modelled by Acacia. Despite
producing at deeper levels, this adjusted rate proposed by Barrick is only slightly below the annual
average achieved over the last five full years of operation 6, a period which includes some of the
best underground production levels ever achieved at Bulyanhulu, and from shallower production
levels proximal to the base of the shaft.
• Production and costs: the reduction in tonnes and grade impacts both production and costs and
therefore Barrick considers that it would be appropriate to reduce the average annual production
presented by Acacia and to increase the fixed unit cost component accordingly.
• Capital expenditures: Barrick believes upfront capital spend will be higher than the US$140-160m
startup costs assumed in Acacia’s optimization study due to additional conversion drilling
requirements and the refurbishment of the Bulyanhulu plant prior to restart from care and
maintenance, offset by lower overall LOM capital spend as a consequence of lower throughput.
5 Last five full years of operation are 2012 to 2016 (inclusive) given the export ban was announced in March 2017.
6 2012 to 2016 (inclusive) given export ban
BARRICK GOLD CORPORATION PRESS RELEASE
The following table sets out a comparison between Acacia’s publicly disclosed parameters for Bulyanhulu,
the mine’s 5-year historic performance, and the adjustments made by Barrick to Acacia’s mine plan.
Parameter Indicative optimization
study results
Historic average –
previous 5 years of full
operation***
Barrick adjusted*****
LOM Feed 18.9Mt* (18 year LOM) NA 16.3Mt (18 year LOM)
Head Grade (g/t) 10.6g/t (LOM)** 8.5g/t**** 8.6g/t (LOM)
Ore hoisted 1,000-1,100ktpa
(steady state)
928kt pa 850-900 ktpa
(steady state)
Gold produced 300-350kozpa
(steady state)
230koz pa**** 250-289kozpa
(steady state)
AISC1 US$700-750/oz
(steady state)
US$1,233/oz US$840-860/oz (steady
state)
Startup capital
expenditure
US$140-160m NA US$190-210m
* 18.9Mt calculated using 1,050kt per annum (median of steady state optimization study guidance) over 18 years
** 10.6g/t calculated using 325koz gold produced (median of steady state optimization study guidance) at 91% recovery (based on
historical performance at Bulyanhulu) from 1,050kt feed per annum for the life of mine inclusive of the tailings storage facility (“TSF”)
feed
*** Last five full years of operation are 2012 to 2016 (inclusive) given the export ban was announced in March 2017
**** Excludes reprocessed tailings
***** Barrick adjusted steady state figures based on 12 full calendar years of UG product ion, subsequent to the first 2 years of TSF
feed during UG ramp up
North Mara
• Grade of inferred/unclassified underground material: Acacia’s mine plan for North Mara
assumes higher grades for the inferred and unclassified underground material than the curr ent
grade of its measured and indicated resource. The Barrick technical team has aligned the
assumption with measured and indicated grades, resulting in a reduction of the grade of the inferred
and unclassified underground material from 6.8g/t to 5.6g/t.
• G&A and UG mining costs: the Barrick technical team has made an upward adjustment to costs
to represent what Barrick considers to be more realistic G&A and underground mining costs,
benchmarked against historical levels achieved by Acacia and its own simi lar-sized underground
operations in Africa; these adjustments increase average AISC to $877/oz.
• Capital expenditures: Barrick has identified a need for higher upfront capital spend at North Mara
(increasing near-term capital spend to $385 million) to address additional grade control drilling, the
need to upgrade from a cemented aggregate fill (“CAF”) to a paste filling plant, and costs to expand
the lined tailing storage facility and improve the water management to conclusively address
environmental risks.
The Proposal reflects fair value
The adjustments Barrick considers should be made to Acacia’s mine plans, together with the transfer of
value to the GoT as a consequence of the tax settlement terms and new tax and regulatory framework for
Acacia in Tanzania going forward, underpin Barrick’s view of the value of Acacia. Barrick continues to
believe that the terms of the Proposal reflect the fair value of Acacia, not taking into account any further
discount which could be applied to reflect the significant risks inherent in the Acacia business and remaining
uncertainties of the settlement with the GoT.
BARRICK GOLD CORPORATION PRESS RELEASE
Comments have been made as to the difference between Acacia’s carrying value in Barrick’s books as at
December 31, 2018 and the value of its Proposal to Acacia. For the preparation of its 2018 accounts, the
carrying value on Barrick’s books is based on the book value as dis closed by Acacia but also includes an
intercompany asset held in the direct holding company of Acacia (which would not be part of any impairment
assessment) and other minor adjustments. During H1 2019, Acacia updated its LOM models and
subsequent to that the Barrick team has had an opportunity to conduct the diligence review described above
and risk adjust the value of the assets. Given the value implied by Barrick’s adjusted LOM plans, this
represents an indicator of impairment and Barrick expects to recor d a material impairment to its carrying
value of Acacia in the current quarter.
Barrick believes that there is no other credible alternative solution
In the absence of a take- private transaction, Barrick does not consider there is any credible alternative
solution which will preserve, to the extent possible, value for all stakeholders, and no such alternative has
been presented by Acacia. In Barrick’s view the continuance of the arbitration proceedings involves
significant risk. Barrick notes that Acacia has consistently stated that it would prefer a negotiated solution
to its disputes with the GoT, whilst noting the risk of continuing and further legal or regulatory action by the
GoT.
Takeover Code notes
The Proposal is subject to the satisfac tion of a number of customary conditions, including receiving the
recommendation of the Acacia board. Barrick reserves the right to waive all or any of such conditions at its
discretion. The Proposal does not constitute an offer or impose any obligation on Barrick to make an offer.
There can be no certainty that any offer for Acacia will ultimately take place, nor as to the structure of any
such offer, should one be forthcoming, even if the pre- conditions are satisfied or waived. Barrick reserves
the right to: (a) vary the form and/or mix of consideration referred to in this announcement and/or introduce
other forms of consideration; and (b) make an offer or other proposal on less favorable terms than an
exchange ratio of 0.153 Barrick shares for each ordinary share of Acacia referred to in this announcement
with the agreement, recommendation or consent of the board of Acacia.
Barrick will have the right to reduce the number of new Barrick shares that Acacia minority shareholders
will receive under the term s of the Proposal by the amount of any dividend (or other distribution) which is
declared, paid or made by Acacia to Acacia shareholders.
This announcement does not amount to a firm intention to make an offer under Rule 2.7 of the Code, which
regulates the making of offers for public companies listed in the UK. There can be no certainty any offer will
be made, even if the pre-conditions referred to are satisfied or waived.
In accordance with Rule 2.6(a) of the Code, Barrick must, by not later than 5: 00 p.m. on June 18, 2019,
either announce a firm intention to make an offer for Acacia in accordance with Rule 2.7 of the Code or
announce that it does not intend to make an offer, in which case the announcement will be treated as a
statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of
the UK Takeover Panel in accordance with Rule 2.6(c) of the Code.
A further announcement will be made as and when appropriate.
Enquiries:
Kathy du Plessis
Barrick Investor and Media Relations
+44 20 7557 7738
BARRICK GOLD CORPORATION PRESS RELEASE
Website: www.barrick.com
Publication on Website
A copy of this announcement will be made available (subject to certain restrictions relating to persons resident in
restricted jurisdictions) at www.barrick.com no later than 12.00 noon (London time) on 19 June 2019 (being the
business day following the date of this announcement) in accordance with Rule 26.1(a) of the Code. The content of the
website referred to in this announcement is not incorporated into and does not form part of this announcement.
Overseas jurisdictions
The release, publication or distribution of this announcement in jurisdictions other than the United Kingdom may be
restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the United Kingdom
should inform themselves about, and observe, any applicable requirements. The information disclosed in this
announcement may not be the same as that which would have been disclosed if this announcement had been prepared
in accordance with the laws of jurisdictions outside the United Kingdom.
The Barrick shares mentioned in this announcement (the "Shares") have not been and will not be registered under the
US Securities Act of 1933 (the “Securities Act”) or under the securities laws of any state or other jurisdiction of the
United States. This announcement does not constitute an offer to sell, or the solicitation of any offer to buy the Shares
in the United States. Accordingly, the Shares may not be offered, sold, resold, delivered, distributed or otherwise
transferred, directly or indirectly, in or into the United States absent registration under the Securities Act or an exemption
therefrom, nor shall there by any sale of the Shares in any jurisdiction in which such offer, solicitation or sale would be
lawful.
Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this press release, including any information as to our
strategy, p rojects, 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”, “imply”, “could”,
“possible”, “seek”, “propose”, “may”, “can”, “should”, “could”, “would”, and similar expressions identify forward-looking
statements. In particular, this press release contains forward-looking statements including, without limitation, with
respect to the future growth, results of o perations, performance, business prospects and opportunities of Barrick and
Acacia, including gold production from Acacia’s mines; the Proposal; the integration of Acacia’s business with the
existing operations of Barrick; the impact of the Proposal on the financial position of Barrick and Acacia; impairment
charges to be recorded by Barrick; and the outlook for Barrick’s and Acacia’s respective businesses and the gold mining
industry generally based on information currently available. These expectations may not be appropriate for other
purposes.
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 press 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: ex pectations regarding whether the Proposal will be formally announced including
whether the pre-conditions to formal announcement of the Proposal will be satisfied, and the anticipated timing of a
formal announcement; expectations regarding whether the Proposal will be completed, including whether any
conditions to completion of the Proposal will be satisfied, and the anticipated timing for completion; the combined
company’s future plans, business prospects and performance, growth potential, financial strength, market profile,
revenues, working capital, capital expenditures, investment valuations, income, margins, access to capital and overall
strategy; expectations regarding the receipt of any necessary regulatory and third party approvals and the expiration of
all relevant waiting periods; the anticipated number of Barrick common shares to be issued as consideration for the
Proposal, the expected total capitalization of Barrick on a consolidated basis following the Proposal and the ratio of the
Barrick commo n shares to be held by Barrick shareholders and Acacia shareholders, respectively, following the
Proposal; the anticipated benefits of the Proposal; expectations regarding the value and nature of the consideration
payable to Acacia shareholders as a result of the Proposal; the anticipated mineral reserves of Barrick following
completion of the Proposal; and the expenses of the Proposal; fluctuations in the spot and forward price of gold, copper,
BARRICK GOLD CORPORATION PRESS RELEASE
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 for which additional engineering and other analysis
is required to fully assess their impact; the duration of the Tanzanian ban on mineral concentrate exports; the ultimate
terms of any definitive agreement to resolve the dispute relating to the 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; 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; 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; adverse changes in our credit ratings; 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 practices, expropriation or nationalization of property and political or economic
developments in Tanzania 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 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; 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 c athode 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 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 United States Securities and Exchange Commission
(“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.
The Company 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.
Endnotes
1. As per Acacia’s 2018 Annual Report, Acacia has identified certain measures in its public disclosures that are
not measures defined under IFRS. Non-IFRS financial measures disclosed by Acacia’s management are
provided as additional information to investors in order to provide them with an alternative method for
assessing Acacia’s financial condition and operating results, and reflects more relevant measures for the
industry in which Acacia operates. These measures are not in accordance with, or a substitute for, IFRS, and
may be different from or inconsistent with non -IFRS financial measures used by other companies. “All -in
sustaining costs” (AISC) per ounce is one such non-IFRS financial measure disclosed by Acacia. The measure
is in accordance with the World Gold Council’s guidance issued in June 2013. It is calculated by taking cash
cost per ounce sold (defined below) and adding corporate administration costs, share -based payments,
reclamation and remediation costs for operating mines, corporate social responsibility expenses, mine
exploration and study costs, realized gains and/or losses on operating hedges, capitalized stripping and
underground development costs and sustaining capital expenditure. This is then divided by the total ounces