Kibali Breaks Records Across Board, All Key Production Parameters Above Plan
NEWS RELEASE
NYSE : GOLD TSX : ABX
Kibali Breaks Records Across Board, All Key
Production Parameters Above Plan
All amounts expressed in U.S. dollars
Kinshasa, DRC, January 28, 2019 — The Kibali gold mine produced 807,251 1 ounces of gold in 2018,
above its target of 750,000 ounce s and 35% higher than its outp ut the previous year. This was achieved
on the back of the successful r amp-up in underground production and a steady improvement in the
processing plant recovery and throughput.
Barrick president and chief executive Mark Bristow told a media briefing here today that the record
production was driven by the sha ft operating at nameplate speci fication and the optimization of the
underground materials handling system which has placed Kibali a t the leading edge of gold mine
automation in Africa.
Despite the high activity level, the mine recorded its safest y ear to date, with no lost-time injuries in the
fourth quarter and no significant environmental incident. Bristow said the mine continued to offset the impact
of its operations through environmental projects such as the 10 ,130 indigenous trees planted on the site
last year, as well as biodiversity initiatives. On the health f ront, the malaria and HIV prevalence rates
continued to decrease and stood at 12.9% and 2.8% respectively at the year end.
The resettlement of 1,478 familie s from the Gorumbwa site to a new village has be en successfully
completed and will allow the dev elopment of the next satellite pit in the mine plan. In addition, continuing
brownfields exploration around t he mine has identified numerous opportunities for reserve replacement
along the KZ trend and around KCD.
Bristow noted that Kibali’s partnership philosophy was continuing to deliver dividends to the local economy,
with $39 million paid to Congolese contractors in the last quarter of 2018 alone.
“Our commitment to the DRC, made 10 years ago when Randgold sta rted developing Kibali, has not
dimmed, and under the new banner of Barrick we expect to contin ue to make a significant and growing
contribution to the country’s economy and to unlock further value for all our stakeholders,” he said.
Enquiries:
President and
chief executive
Mark Bristow
+1 647 205 7694
+44 788 071 1386
COO, Africa and
Middle East
Willem Jacobs
+243 820 678 040
DRC country manager
Cyrille Mutombo
+243 815 842 990
Investor and
media relations
Kathy du Plessis
+44 20 7557 7738
Website: www.barrick.com
BARRICK GOLD CORPORATION NEWS RELEASE
About the Kibali Gold Mine
The Kibali mine, located in the Democratic Republic of Congo, is one of the largest gold mines in Africa. It
comprises an integrated open pit and an underground operation a s well as a 7.2Mtpa processing plant.
First gold was poured in 2013 from open pit operations and commissioning of the full underground operation
was completed at the end of 2017.
Kibali is in the northeast of the DRC, approximately 220km east of the capital of the Haut Uele province,
Isiro, 150km west of the Ugandan border town of Arua and 1,800k m from the Kenyan port of Mombasa.
The mine is owned by Kibali Goldmines SA (Kibali) which is a joint venture company effectively owned 45%
by each of Barrick and AngloGold Ashanti, and 10% by Société Miniére de Kilo-Moto (SOKIMO). The mine
was developed and is operated by Barrick.
About Barrick
On January 1, 2019, a new Barrick was born out of the merger be tween Barrick Gold Corporation and
Randgold Resources Limited. Shares in the new company trade on the NYSE (GOLD) and the TSX (ABX).
The merger has created a sector-leading gold company which owns five of the industry’s Top 10 Tier One2
gold assets (Cortez and Goldstrike in Nevada, USA (100%); Kibali in DRC (45%); Loulo-Gounkoto in Mali
(80%); and Pueblo Viejo in Dominican Republic (60%)) and two with the potential to become Tier One2 gold
assets (Goldrush/Fourmile (100%) and Turquoise Ridge (75%), both in the USA).
With mining operations and projects in 15 countries, including Argentina, Australia, Canada, Chile, Côte
d’Ivoire, DRC, Dominican Republic, Mali, Papua New Guinea, Peru , Saudi Arabia, Senegal, USA, and
Zambia, Barrick has the lowest total cash cost3 position among its senior gold peers4 and a diversified asset
portfolio positioned for growth in many of the world’s most prolific gold districts.
Cautionary Statement on Forward-Looking Information
Certain information contained in this news release, including any information as to Barrick’s strategy, plans,
or future financial or operating performance, constitutes “forward-looking statements”. All statements, other
than statements of historical fact, are forward-looking statements. The words “continue”, and “expect” and
similar expressions identify forward-looking statements. In par ticular, this news release contains forward-
looking statements including, without limitation, with respect to: opportunities for reserve replacement along
the KZ trend and around KCD; and future contributions to the ec onomy of the Democratic Republic of
Congo.
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 Barrick as at the date of this news release in light of management’s experience and perception of current
conditions and expected developm ents, are inherently subject to significant business, economic, and
competitive uncertainties and contingencies. Known and unknown factors could cause actual results to
differ materially from those projected in the forward-looking statements, and undue reliance should not be
placed on such statements and information. Such factors include, but are not limited to: changes in national
and local government legislation, taxation, controls, or regulations and/or changes in the administration of
laws, policies, and practices, expropriation or nationalization of property and political or economic
developments in the Democratic Republic of Congo; lack of certainty with respect to foreign legal systems,
corruption, and other factors that are inconsistent with the ru le of law; risk of loss due to acts of war,
terrorism, sabotage and civil disturbances; fluctuations in the spot and forward price of gold, copper, or
certain other commodities (such as silver, diesel fuel, natural gas, and electricity); timing of receipt of, or
failure to comply with, necessary permits and approvals; failur e to comply with environmental and health
BARRICK GOLD CORPORATION NEWS RELEASE
and safety laws and regulations; litigation; damage to the Barrick’s reputation due to the actual or perceived
occurrence of any number of ev ents, including negative publicity with respect to the Barrick’s handling of
environmental matters or dealings with community groups, whethe r true or not; the speculative nature of
mineral exploration and development; changes in mineral product ion performance, exploitation, and
exploration successes; diminishing quantities or grades of reserves; increased costs, delays, suspensions,
and technical challenges associated with the construction of ca pital projects; operating or technical
difficulties in connection with mining or development activitie s, including geotechnical challenges, and
disruptions in the maintenance or provision of required infrastructure and information technology systems;
the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and
liabilities based on projected future cash flows; the impact of inflation; fluctuations in the currency markets;
contests over title to properties, particularly title to undeveloped properties, or over access to water, power,
and other required infrastructure; employee relations including loss of key employees; increased costs and
physical risks, including extreme weather events and resource s hortages, related to climate change; and
availability and increased costs associated with mining inputs and labor. In addition, there are risks and
hazards associated with the business of mineral exploration, de velopment, and mining, including
environmental hazards, industria l accidents, unusual or unexpec ted formations, pressures, cave-ins,
flooding, and gold bullion, copper cathode, or gold or copper concentrate losses (and the risk of inadequate
insurance, or inability to obtain insurance, to cover these risks).
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 a re not guarantees of future performance.
All of the forward-looking statements made in this news 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 SEC and Canadian provincial securities regulatory authoriti es 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 news release.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as
a result of new information, future events or otherwise, except as required by applicable law.
Third Party Data
The total cash costs comparison of Barrick to its senior gold p eers is based on data obtained from Wood
Mackenzie as of August 31, 2018. Wood Mackenzie is an independent third party research and consultancy
firm that provides data for, among others, the metals and mining industry. Wood Mackenzie is not affiliated
with Barrick.
Where figures for Barrick are compared to its senior gold peers, the data from Wood Mackenzie has been
used to ensure consistency in the compared measure across the Barrick and the comparator group. Barrick
does not have the ability to verif y the Wood Mackenzie figures and the non-GAAP financial performance
measures used by Wood Mackenzie may not correspond to the non-GAAP financial performance measures
calculated by Barrick or any of the other senior gold peers.
Endnotes
1. 100% basis. In 2018, Randgold’s 45% equity share of gold pro duction from Kibali was 363,000
ounces.
2. A Tier One Gold Asset is a mi ne with a stated life in excess of 10 years with 2017 production of at
least 500,000 ounces of gold and 2017 total cash cost per ounce within the bottom half of Wood
BARRICK GOLD CORPORATION NEWS RELEASE
Mackenzie’s cost curve tools (excluding state-owned and privately-owned mines). For purposes of
determining Tier One Gold Assets, “Total cash cost” per ounce i s based on data from Wood
Mackenzie as of August 31, 2018. The Wood Mackenzie calculation of “Total cash cost” per ounce
may not be identical to the manner in which Barrick calculates comparable measures. “Total cash
cost” per ounce is a non-GAAP finan cial performance measure wit h no standardized meaning
under IFRS and therefore may not be comparable to similar measures presented by other issuers.
“Total cash cost” per ounce should not be considered by investo rs as an alternative to operating
profit, net profit attributable to shareholders, or to other IF RS measures. Wood Mackenzie is an
independent third party research and consultancy firm that prov ides data for, among others, the
metals and mining industry. Wood Mackenzie does not have any af filiation to Barrick. See also
Endnote #3.
3. “Lowest total cash cost” is based on data from Wood Mackenzi e as of August 31, 2018. “Total cash
cost” is a non-GAAP financial perf ormance measure with no stand ardized meaning under IFRS
and therefore may not be comparable to similar measures present ed by other issuers. Financial
comparisons between the post-merger Barrick and its senior gold peers are made on the basis of
the data presented by Wood Mackenzie which may not be calculated in the same manner as Barrick
calculates comparable measures. Barrick believes that total cas h cost is a useful indicator for
investors and management of a mining company’s performance as i t provides an indication of a
company’s profitability and efficiency, the trends in cash costs as the company’s operations mature,
and a benchmark of performance to allow for comparison against other companies.
4. Senior gold peers means the following companies: Agnico Eagl e Mines Limited, Goldcorp Inc.,
Newcrest Mining Limited, and Newmont Mining Corporation.