Key Performance Indicators Financial and Operating
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Key Performance Indicators
Financial and Operating
Highlights
Financial Results Q3 2019 Q2 2019 Q3 2018
Realized gold price2,3
($ per ounce) 1,476 1,317 1,216
Net earnings (loss)
($ millions) 2,277 194 (412 )
Adjusted net earnings1
($ millions) 264 154 89
Net cash provided by operating
activities ($ millions) 1,004 434 706
Free cash flow4
($ millions) 502 55 319
Net earnings (loss) per share
($) 1.30 0.11 (0.35 )
Adjusted net earnings
per share1 ($) 0.15 0.09 0.08
Total attributable capital
expenditures5 ($ millions) 397 361 372
Operating Results
Q3 2019 Q2 2019 Q3 2018
Gold
Production
(000s of ounces) 1,306 1,353 1,149
Cost of sales6 (Barrick's share)
($ per ounce) 1,065 964 850
Total cash costs7
($ per ounce) 710 651 587
All-in sustaining costs7
($ per ounce) 984 869 785
Copper
Production
(millions of pounds) 112 97 106
Cost of sales6 (Barrick's share)
($ per pound) 2.00 2.04 2.18
C1 cash costs8
($ per pound) 1.62 1.59 1.94
All-in sustaining costs8
($ per pound) 2.58 2.28 2.71
▪ Strong Q3 points to higher end of
production and lower end of cost guidance
for the year
▪ Debt net of cash at $3.2 billion after
payment of dividend, down 14% from Q2
▪ Adjusted net earnings per share1 of $0.15
up 67% on Q2
▪ Continued efficiency improvements lead to
15% increase in copper production quarter
on quarter
▪ Nevada Gold Mines JV delivers on
production plan in first quarter of operation
▪ Improved performance at lower cost from
Pueblo Viejo as expansion study
progresses
▪ African and LatAm/APac operations
remain on track with strong performances
from Loulo-Gounkoto and Porgera
▪ Refocused mineral resource management
and exploration delivers new discovery at
Fourmile and highlights geological upside
across the group
▪ Latest drilling indicates life of mine
extensions at Porgera and Veladero
▪ Improved position in Dow Jones
Sustainability Index as Barrick continues to
roll out new sustainability initiatives
▪ New focus on safety and environment
delivers another quarter of improvements
▪ Quarterly dividend increased by 25% to
$0.05 per share as cash balance grows
BARRICK THIRD QUARTER 2019 2 PRESS RELEASE
Continued from page 1
Barrick president and chief executive Mark Bristow said
lean, agile management teams had built on a return to
the basics of mineral resource management to deliver
performance improvements across the group, as well
as a range of new opportunities. These included a major
new discovery at Fourmile in Nevada, Life of Mine
extensions at Porgera and Veladero, and the
confirmation of a wide-ranging geological upside.
“We have prepared detailed five-year plans for each
region which we are sharing with the market this quarter.
These will be followed by a 10-year production plan,
scheduled for publication with our next annual report.
The objective is to make capital allocation, budgeting
and forecasting more dynamic. This, combined with the
roll-out of our new information management systems,
will enable us to use real-time data availability for real-
time decision-making,” he said.
Barrick has also moved the ownership of orebody
modelling, reserve and resource estimation and mine
planning to the operations, with oversight from the
corporate executive, in line with its policy of effective
on-site management and a flat organizational structure.
Bristow said the planned disposal of non-core assets
was progressing as scheduled and was expected to
realize $1.5 billion or more by the end of next year.
“These are exciting times with lots of opportunities to
deliver real value for our owners and stakeholders, and
Barrick is strongly placed to take full advantage of
these,” he said.
Conference Call and Webcast
Please join us for a conference call and webcast today
at 9:00 ET/14:00 GMT to discuss the results.
US and Canada, 1-800-319-4610
UK, 0808 101 2791
International, +1 416 915-3239
Webcast
The event will be available for replay online or by
telephone at 1-855-669-9658 (US and Canada) and +1
604 674-8052 (international), access code 3391.
BARRICK THIRD QUARTER 2019 3 PRESS RELEASE
BARRICK ANNOUNCES INCREASED DIVIDEND FOR Q3 2019
Barrick Gold Corporation today announced that its Board of
Directors has declared a dividend for the third quarter of 2019
of $0.05 per share, a 25% increase on the previous quarter’s
dividend, payable on December 16, 2019 to shareholders of
record at the close of business on November 29, 2019.9
Senior Executive Vice-President and Chief Financial Officer
Graham Shuttleworth said Barrick’s business continued to
perform well and the increased dividend reflected its strong
operating performance and growth in cashflows and is
consistent with the Company’s stated financial and operating
objectives.
BARRICK THIRD QUARTER 2019 4 PRESS RELEASE
The Barrick value chain
GEOCENTRIC FOCUS DELIVERS RESULTS
ACROSS GROUP
Geology is literally the bedrock on which the mining industry is built. The quality and size of the orebodies
are not only its foundation but its revenue driver, which is why the geosciences are the key component of
Barrick’s business model.
Effective exploration and responsible orebody stewardship
were central to the success of the group’s legacy companies
- the pre-merger Barrick and Randgold - but Barrick’s
geocentric focus faded over the years. The merger presented
the opportunity to reinvigorate and strengthen exploration and
mineral resource management, and reposition them as the
starting point for optimal planning and the first link in the value
chain, explains Mark Bristow, president and CEO of Barrick.
Essentially, says mineral resource management and
evaluation executive Rod Quick, the geosciences -
geotechnical analysis, geometallurgy and geohydrology -
have been integrated, and mine designs and feasibility studies
are being revised accordingly.
“Since the start of the year, we’ve strengthened the teams,
appointed mineral resource managers at all sites, improved
our geological knowledge and models, and started drilling
these models. We’ve also re-introduced focused exploration
programs for Barrick’s next Tier One10 asset,” he says.
“Already significant new mineral potential has been identified
across our portfolio of operations. Exploration has delivered
a new discovery close to Fourmile and Goldrush in Nevada,
and the latest drilling and modelling results point to potential
Life of Mine extensions at Veladero, Pueblo Viejo, Porgera,
Hemlo, Loulo-Gounkoto and Kibali. At Carlin, district-scale
geological compilation and integration have yielded multiple
high-quality targets, and drilling is already underway.”
Executive vice president, exploration and growth, Rob
Krcmarov says in addition to maximizing its existing assets,
Barrick is already looking beyond the 10-year horizon in its
search for new opportunities, based on the group’s broad
geological knowledge across multiple world-class
destinations.
“Mining is a long-term game, and we’re hunting Tier One 10
assets that will deliver value at the top as well as the bottom
of the inevitable cycles and will buffer Barrick against any
market volatility. That means we want orebodies with quality
as well as size,” Krcmarov says.
BARRICK THIRD QUARTER 2019 5 PRESS RELEASE
The Barrick value chain
POSITIVE ENERGY
Power is not only the mining industry's biggest cost driver; its generation also has a significant impact on the
environment.
That is why Barrick’s energy strategy is designed not only to
deliver a reliable supply of affordable power to its mines, but
also to minimize the group’s carbon footprint, says metallurgy,
engineering and capital projects executive John Steele.
“We’ve moved thermal power generation at the mines that
need it from diesel and Heavy Fuel Oil (HFO) to natural gas
wherever possible. We’re also extending regional power grids
to enable our mines to link up with national systems, and
introducing solar power where this can make a difference to
our grid supply,” he says.
The development of the Tier One 10 Kibali mine in the
Democratic Republic of Congo included the construction of
three run of the river hydropower stations. Tongon in Côte
d’Ivoire is supplied with a mix of gas-generated thermal power
and hydropower by the country’s national grid. Porgera in
Papua New Guinea currently uses gas-fired thermal
generation but the potential to introduce a hydropower
component is being evaluated. Nevada Gold Mines can be
fed by its own gas and coal fired thermal stations but typically
draws power from the Western US grid. To further improve
emissions in Nevada, coal to gas conversion is being
investigated. Pueblo Viejo in the Dominican Republic supplies
the mine and the local grid with thermal power and recently
converted from HFO to natural gas to reduce cost and carbon
emission. Veladero in Argentina is being connected to grid
power from neighboring Chile to eliminate its reliance on
diesel-fired thermal generation. Solar power is being added
to the supply mix at Loulo in Mali to reduce its diesel
consumption and is also being considered in Nevada to offset
thermal and grid power consumption.
“Responsible power generation is good business because it
cuts costs. And because it reduces Barrick’s carbon footprint,
it is also the right thing to do for our host countries and
communities,” says Steele.
BARRICK THIRD QUARTER 2019 6 PRESS RELEASE
The Barrick value chain
CONVERTING WORLD-CLASS OREBODIES
INTO HIGH-MARGIN BUSINESSES
The mineral resource value-creation chain starts with the
discovery of a world-class asset and culminates in its optimally
efficient metallurgical extraction. Barrick has many of the gold
mining industry’s Tier One10 assets and, to make the most of
these, it uses a complete range of processing technologies,
ranging from simple heap leaching to complex refractory ore
processing in autoclaves and roasters.
▪ Barrick’s Nevada roasters are the world leaders in
complex double refractory ore processing.
▪ The Nevada autoclaves process high TCM
refractory sulphides with Calcium Thiosulphate
leaching and Resin-in-Leach recovery.
▪ In Nevada, the Dominican Republic and Papua New
Guinea, pressure oxidation in autoclaves is used to
process single refractory sulphides.
▪ Barrick is at the forefront of ultra-fine grinding of
partially refractory sulphides to enhance the
extraction of gold at its African operations.
▪ It also runs simple milling circuits; sulphide flotation
and heap leach operations.
“We’re always looking for ways to improve our efficiencies
and take our processing operations to the next level. The
challenge is not only to stay at the forefront of technological
developments but to ensure that our processing facilities are
fully integrated with our environmental and sustainability
initiatives,” says Barrick president and chief executive Mark
Bristow.
Current projects include a new flotation system to support the
proposed expansion of Pueblo Viejo’s operations; a
modification of the Mill 6 roaster at Carlin to raise throughput
and improve productivity; and pushing the grind/recovery/
throughput trade-off at Twin Creeks in Nevada to deliver a
lower cost per ounce of production.
BARRICK THIRD QUARTER 2019 7 PRESS RELEASE
SUSTAINABILITY: A VISION BECOMES A REALITY
One of the new executive team’s first acts after the merger
was to define exactly what its sustainability initiatives should
achieve. It set these aims out clearly:
▪ Barrick’s mines should create long-term value for all
its stakeholders, including investors, host countries
and communities, and employees.
▪ Environmental and social considerations should be
embedded in all business decisions to ensure that
high and rising expectations are met.
▪ Barrick must build deep partnerships with all
stakeholders and act on their concerns.
“Over the past nine months we have been putting these
principles into action and our efforts are paying dividends,”
says group sustainability executive Grant Beringer.
“We are particularly proud that Barrick has been included in
the Dow Jones Sustainability World Index for the twelfth
consecutive year. The Index evaluates more than 2,500
companies and uses rigorous criteria to identify the top 10
percent performers. We’ve also been ranked as a leader for
our sustainability disclosure by ISS ESG, a governance
research firm.
Beringer says that while recognition is a sign that Barrick is
on the right track, it is the actions that the teams at the mines
take that are critical to the group’s continued success in turning
its sustainability vision into a tangible reality.
BARRICK THIRD QUARTER 2019 8 PRESS RELEASE
SUSTAINABILITY IN ACTION: CASE STUDIES
Developing agricultural entrepreneurs in Mali and
Zambia
Loulo has established an agribusiness and has trained 48
local farmers in setting up a business, production and
marketing. Thirty farms have been created with credit
provided by a microfinance firm. They have also been
provided with water and equipment. To date, the farms have
generated production of 30 tonnes of food and income of
$39,000. At Barrick’s Lumwana mine in Zambia, women from
the local community are being trained in vegetable and fruit
production, and have been provided with a borehole, a
greenhouse and storage sheds, among other items.
Bringing back quality healthcare to the Porgera Valley
The Paiam hospital in Papua New Guinea has been re-
opened after three years thanks to funding assistance
provided by the Porgera Joint Venture (PJV) for its
refurbishment and the supply and installation of new
equipment. PJV also project-managed the process to
facilitate the opening. Throughout its life, Porgera Mine has
supported the regional health sector and has provided the
funding and infrastructure to develop health services in
Porgera and the Enga province.
A big win for Giant Nickel’s reclamation
Barrick has received the Jake McDonald Annual Reclamation
Award from the British Columbia Technical and Research
Committee for improvements it made to a reclaimed tailings
facility at the historic Giant Nickel mine, which closed in 1978.
The improvements took 18 months to complete and
demonstrate the company's commitment to the environment.
They include a new water management infrastructure which
has improved the water quality and fish habitat in the
surrounding environment.
Rehabilitating El Indio
Located 4,000 meters above sea level in Chile’s Elqui Valley,
the El Indio gold mine ceased operations in 2002. As there
were no definitive regulations for mine closures in Chile at the
time, Barrick voluntarily submitted a plan in accordance with
the highest international standards. The plan provided for the
dismantling of works and facilities as well as the relocation of
employees. Today, more than 80% of the closure works have
been completed and last year the Chilean Safety Association
recognized Barrick for reaching 14 years without a Lost-Time
Injury at the site.
Support for local farmers in Argentina
Veladero initiated an agricultural project in 2017 in
cooperation with the Ministry of Mining and Production, local
municipalities and private sector companies and
associations. It involves 45 local farmers who participate in
training and development programs aimed at increasing their
agricultural yield and extending their distribution network. To
increase production and capacity, two greenhouses and eight
cold storage chambers have been constructed. Since 2018
the project has produced 400 tons of vegetables, sold for
$95,000.