Loulo-Gounkoto Complex Continues to Invest in Its Future and Points to Ongoing Improvement in Production
NEWS RELEASE
NYSE : GOLD TSX : ABX
Loulo-Gounkoto Complex Continues to Invest in Its
Future and Points to Ongoing Improvement in
Production
LOULO GOLD MINE, Mali, January 22, 2019 — The Loulo-Gounkoto complex in Mali posted a fourth
consecutive quarterly improvement in gold production, despite an illegal work stoppage that caused it to
miss its full year production guidance of 690 ,000 ounces by four percent. In addition to this, 2018 was a
record throughput year of more than five million tonnes at close to the complex’s reserve grade.
Speaking at a briefing here for local media, Barrick President and Chief Executive Mark Bristow noted that
the complex, which ranks among the recently -merged Barrick/Randgold group’s Tier One 1 assets, was
continuing to invest in its future by exploring for additional reserves and upgrading plant and equipment.
“A preliminary economic assessment of the Loulo 3 open pit and underground project has been completed
and drill ing continues to expand the area of high -grade mineralization south of the Yalea orebody.
Exploration of the Faraba structure on the Gounkoto permit has shown the potential for multiple zones of
mineralization to be extended,” Bristow said.
“At the exist ing operations, we’ve commissioned the second crusher at Yalea, the full integration of the
automated dispatch system at Gounkoto and the second radar for the geotechnical monitoring of the
Gounkoto pit. The complex has also completed the striker belts project at Gara and moved ahead with the
expansion of the tailings treatment facility.”
Bristow said the continuing profitable growth of Loulo -Gounkoto was a shining example of what could be
achieved through a genuine partnership between investors, managers and governments. He cited the tax
holiday recently granted for the development of the super pit at Gounkoto as a typical instance of mutually
beneficial cooperation.
“As Randgold, we’ve been engaged in Mali for 25 years and have worked together productive ly with
successive governments. We look forward to continuing this relationship as Barrick with the recently-elected
government and the new minister of mines. Our differences over the tax issue remain on the agenda and
we trust that through amicable mediation we’ll arrive at a solution acceptable to both parties,” he said.
Bristow noted that the complex continued to improve its safety and environmental management, and had
obtained the new version of the ISO 14001 environmental certification while retaining its OHSAS 18001
health and safety rating.
The group was also maintaining its support for community development programs and projects. At its other
Malian asset, Morila, the government has formally endorsed its plan to establish an agribusiness designed
to mitigate the social and economic impact of the operations closure.
BARRICK GOLD CORPORATION NEWS RELEASE
Enquiries:
President and chief executive
Mark Bristow
+1 647 205 7694
+44 788 071 1386
Group regional manager
West Africa
Mahamadou Samaké
+223 66 75 61 36
Investor & media relations
Kathy du Plessis
+44 20 7557 7738
Email: [email protected]
Website: www.barrick.com
About Barrick
On January 1, 2019, a new Barrick was born out of the merger between 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 One1
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 One1 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, a nd
Zambia, Barrick has the lowest total cash cost2 position among its senior gold peers3 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”, “potential” and
“will” and similar expressions identify forward-looking statements. In particular, this news release contains
forward-looking statements including, without limitation, with respect to: the potential for multiple zones of
mineralization to be extended and combined at the Loulo -Gounkoto complex; and the potential mediation
with the government of Mali with respect to tax issues and the outcome of any such mediation.
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 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: 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 Mali; lack of certainty with respect to foreign legal systems, corruption, and other fa ctors
that are inconsistent with the rule 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 ga s, and electricity); timing of receipt of, or failure to comply with, necessary
permits and approvals; failure to comply with environmental and health and safety laws and regulations;
litigation; damage to the Barrick’s reputation due to the actual or perc eived occurrence of any number of
events, including negative publicity with respect to the Barrick’s handling of environmental matters or
dealings with community groups, whether true or not; the speculative nature of mineral exploration and
development; ch anges in mineral production performance, exploitation, and exploration successes;
BARRICK GOLD CORPORATION NEWS RELEASE
diminishing quantities or grades of reserves; increased costs, delays, suspensions, and technical
challenges associated with the construction of capital projects; operating o r 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; the impact of
global liquidity a nd 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 shortages, 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, development, and mining, including environmental
hazards, industrial accidents, unu sual or unexpected 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 are 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 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 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 peers 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 verify 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. A Tier One Gold Asset is a mine 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 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 is 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
financial performance measure with 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 investors as an alternative to operating profit, net profit attributable to shareholders, or
BARRICK GOLD CORPORATION NEWS RELEASE
to other IFRS measures. Wood Mackenzie is an independent third-party research and consultancy firm
that provides data for, among others, the metals and mining industry. Wood Mackenzie does not have
any affiliation to Barrick. See also Endnote #2.
2. “Lowest total cash cost” is based on data from Wood Mackenzie as of August 31, 2018. “Total cash
cost” is a non -GAAP financial p erformance measure with no standardized meaning under IFRS and
therefore may not be comparable to similar measures presented 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 cash cost is a useful indicator for investors
and management of a mining company’s performance as it 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.
3. Senior gold peers means the following companies: Agnic o Eagle Mines Limited, Goldcorp Inc.,
Newcrest Mining Limited, and Newmont Mining Corporation.