Preliminary Full Year and Fourth Quarter Results Show 2019 Gold Production at Upper End and Copper Production Above Guidance Ranges
PRESS RELEASE
NYSE : GOLD TSX : ABX
Preliminary Full Year and Fourth Quarter Results
Show 2019 Gold Production at Upper End and Copper
Production Above Guidance Ranges
All amounts expressed in US dollars
TORONTO, January 16, 2020 — Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick” or the
“Company”) today announced preliminary full year and fourth quarter results which indicate that it has met
its full-year guidance targets with preliminary gold production of 5.5 million ounces, at the upper end of the
5.1 to 5.6 million ounce range and preliminary copper production of 432 million pounds, exceeding the top-
end of guidance of 375 to 430 million pounds. A strong fourth quarter capped off an excellent first year
since the merger with Randgold at the beginning of 2019.
The preliminary fourth quarter results show fourth quarter sales of 1.413 million ounces of gold and 91
million pounds of copper, as well as fourth quarter production of 1.439 million ounces of gold and 117 million
pounds of copper. The average market price for gold in the fourth quarter was $1,481 per ounce, while the
average market price for copper in the fourth quarter was $2.67 per pound.
Preliminary fourth quarter gold sales and production were higher than third quarter levels as a result of a
strong fourth quarter performance from Nevada Gold Mines , in particular at Turquoise Ridge, as well as
Pueblo Viejo and Veladero. At North Mara, normal operations resumed in the fourth quarter following the
lifting of restrictions at the tailings storage facility in September. Fourth quarter gold cost of sales per ounce1
is expected to be in line with the third quarter. A quarter-over-quarter decrease in gold total cash costs per
ounce2 and all-in sustaining costs per ounce2 of approximately 1-3% and 6-8%, respectively is expected.
Preliminary fourth quarter copper production was slightly higher than the third quarter of the year following
strong performance across all operations. Preliminary fourth quarter copper sales were higher than the
third quarter, but lower than fourth quarter production levels as Lumw ana continued to be impacted by a
major refurbishment at one of the third-party smelters that processes a portion of the concentrate produced
by the mine. The refurbishment is expected to be completed in January 2020. Fourth quarter copper cost
of sales per pound1 are expected to be 4-6% higher than the prior quarter, C1 cash costs per pound 2 are
expected to be 6- 8% higher and copper all -in sustaining costs per pound 2 are expected to 2- 4% higher
quarter-over-quarter.
Barrick will provide additional discu ssion and analysis regarding its fourth quarter production and sales
when the Company reports its quarterly and full year 2019 results before North American markets open on
February 12, 2020. President and CEO Mark Bristow will host a live presentation on the results at Barrick's
BARRICK GOLD CORPORATION NEWS RELEASE
corporate office in Toronto at 11:00 EST / 16:00 UTC (GMT) on that day. The presentation will be linked to
a webcast and conference call.
BARRICK GOLD CORPORATION NEWS RELEASE
The following table includes preliminary gold and copper production and sales results fro m Barrick's
operations:
Three months ended
December 31, 2019
Twelve months ended
December 31, 2019
Production Sales Production Sales
Gold (equity ounces (000s))
Carlin3 (61.5%) 276 275 968 967
Cortez (61.5%) 133 132 801 798
Turquoise Ridge4 (61.5%) 111 99 335 356
Long Canyon (61.5%) 34 33 58 57
Phoenix (61.5%) 31 26 56 45
Nevada Gold Mines (61.5%) 585 565 2,218 2,223
Pueblo Viejo (60%) 179 174 590 584
Loulo-Gounkoto (80%) 144 144 572 575
Kibali (45%) 87 89 366 363
Porgera (47.5%) 82 82 284 285
North Mara5 103 103 251 248
Buzwagi5 28 26 83 81
Bulyanhulu5 9 9 27 27
Veladero (50%) 71 70 274 271
Tongon (89.7%) 61 59 245 245
Hemlo 54 53 213 217
Kalgoorlie (50%)6 36 39 206 210
Lagunas Norte — — 107 108
Morila (40%) — — 16 17
Golden Sunlight — — 13 13
Total Gold 1,439 1,413 5,465 5,467
Copper (equity pounds (millions))
Lumwana 63 36 238 169
Zaldívar (50%) 36 40 128 125
Jabal Sayid (50%) 18 15 66 61
Total Copper 117 91 432 355
BARRICK GOLD CORPORATION NEWS RELEASE
Enquiries:
Analyst, Investor Relations and Corporate Access
Claudia Pitre
+1 416 307-5105
Email: [email protected]
Investor & Media Relations
Kathy du Plessis
+44 20 7557 7738
Email: [email protected]
Website: www.barrick.com
Technical Information
The scientific and technical information contained in this news release has been reviewed and approved
by: Steven Yopps, MMSA, Barrick’s Director - Metallurgy, North America; Chad Yuhasz, P .Geo, Barrick’s
Mineral Resource Manager, Latin America and Australia Pacific; and Simon Bottoms, CGeol, Barrick's
Mineral Resources Manager, Africa and Middle East – each a “ Qualified Person” as defined in National
Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Fourth Quarter and Full Year 2019 Results
Barrick will release its Fourth Quarter and Full Year 2019 Results before market open on February 12, 2020.
President and CEO Mark Bristow will host a live presentation on the results at Barrick's corporate office in
Toronto at 11:00 EST / 16:00 UTC (GMT) on that day. The presentation will be linked to a webcast and
conference call.
US and Canada, 1 800 319 4610
UK, 0808 101 2791
International, +1 416 915 3239
Webcast
If you wish to receive an invitation to the presentation in Toronto, please contact Claudia Pitre or
Kathy du Plessis at [email protected].
The Q4 2019 presentation materials will be available on Barrick’s website at www.barrick.com.
BARRICK GOLD CORPORATION NEWS RELEASE
The webcast will remain on the website for later viewing, and the conference call will be available for replay
by telephone at 1 855 669 9658 (US and Canada) and +1 604 674 8052 (international), access code 3969.
Endnote 1
Cost of sales applicable to gold per ounce is calculated using cost of sales applicable to gold on an
attributable basis (removing the non-controlling interest of 40% Pueblo Viejo, 40% South Arturo, 20% Loulo-
Gounkoto and 10.3% of Tongon and including our proportionate share of cost of sales attributable to equity
method investments (Kibali and Morila) in cost of sales), divided by attributable gold ounces. The non -
controlling interest of 38.5% Nevada Gold Mines is also removed from cost of sales from July 1, 2019
onwards. The non- controlling interest of 36.1% Tanzania (North Mara, Bulyanhulu and Buzwagi) was
removed until September 30, 2019, as a matter of convenience as Barrick obtained 100% ownership on
September 17, 2019. Cost of sales applicable to copper per pound is calculated using cost of sales
applicable to copper including our proportionate share of cost of sales attributable to equity method
investments (Zaldívar and Jabal Sayid), divided by consolidated copper pounds (including our proportionate
share of copper pounds from our equity method investments).
Endnote 2
Total cash costs per ounce, all -in sustaining costs per ounce and all -in costs per ounc e are non- GAAP
financial measures which are calculated based on the definition published by the World Gold Council (a
market development organization for the gold industry comprised of and funded by 26 gold mining
companies from around the world, including Barrick) ("WGC"). The WGC is not a regulatory organization.
Management uses these measures to monitor the performance of our gold mining operations and its ability
to generate positive cash flow, both on an individual site basis and an overall company basis.
Total cash costs start with our cost of sales related to gold production and removes depreciation, the non-
controlling interest of cost of sales and includes by -product credits. All-in sustaining costs start with total
cash costs and include sustaining capital expenditures, sustaining leases, general and administrative costs,
minesite exploration and evaluation costs and reclamation cost accretion and amortization. These
additional costs reflect the expenditures made to maintain current production levels.
Starting from the first quarter of 2019, we have renamed "cash costs" to "total cash costs" when referring
to our gold operations. The calculation of total cash costs is identical to our previous calculation of cash
costs with only a change in the naming convention of this non-GAAP measure.
Starting from the first quarter of 2019, we have included sustaining capital expenditures and project capital
expenditures on a cash basis instead of an accrual basis. As a result of adopting IFRS 16 Leases, the f ull
lease amount is included in accrued capital expenditures on initial recognition. We believe that the change
in capital expenditures from an accrual basis to a cash basis better reflects the timing of costs associated
with our operations. The original W GC Guidance Note explicitly excluded certain financing activities from
all-in sustaining costs and all-in costs. As a result of the new lease accounting standard, the WGC Guidance
BARRICK GOLD CORPORATION NEWS RELEASE
Note was updated to include both the principal and interest portion of the c ash lease payment in the all-in
sustaining costs and all-in cost metrics. We have updated our calculation accordingly. Prior periods have
not been restated but would not be materially different.
We believe that our use of total cash costs, all -in sustaining costs and all -in costs will assist analysts,
investors and other stakeholders of Barrick in understanding the costs associated with producing gold,
understanding the economics of gold mining, assessing our operating performance and also our ability to
generate free cash flow from current operations and to generate free cash flow on an overall company
basis. Due to the capital -intensive nature of the industry and the long useful lives over which these items
are depreciated, there can be a significant timing difference between net earnings calculated in accordance
with IFRS and the amount of free cash flow that is being generated by a mine and therefore we believe
these measures are useful non -GAAP operating metrics and supplement our IFRS disclosures. Thes e
measures are not representative of all of our cash expenditures as they do not include income tax
payments, interest costs or dividend payments. These measures do not include depreciation or
amortization.
Total cash costs per ounce, all -in sustaining costs and all -in costs are intended to provide additional
information only and do not have standardized definitions under IFRS and should not be considered in
isolation or as a substitute for measures of performance prepared in accordance with IFRS. These
measures are not equivalent to net income or cash flow from operations as determined under IFRS.
Although the WGC has published a standardized definition, other companies may calculate these measures
differently.
C1 cash costs per pound and all -in sustaining costs per pound are non -GAAP financial measures related
to our copper mine operations. We believe that C1 cash costs per pound enables investors to better
understand the performance of our copper operations in comparison to other copper producers who present
results on a similar basis. C1 cash costs per pound excludes royalties and production taxes and non-routine
charges as they are not direct production costs. All-in sustaining costs per pound is similar to the gold all -
in sustaining costs metric and management uses this to better evaluate the costs of copper production. We
believe this measure enables investors to better understand the operating performance of our copper mines
as this measure reflects all of the sustaining expenditures incurred in order to produce copper. All -in
sustaining costs per pound includes C1 cash costs, sustaining capital expenditures, sustaining leases,
general and administrative costs, minesite exploration and evaluation costs, royalties and production taxes,
reclamation cost accretion and amortization and write-downs taken on inventory to net realizable value.
Barrick will provide a full reconciliation of these non-GAAP financial measures when the Company reports
its quarterly results on February 12, 2020.
Endnote 3
Includes Goldstrike and Nevada Gold Mines' 60% equity share of South Arturo.
BARRICK GOLD CORPORATION NEWS RELEASE
Endnote 4
Includes Twin Creeks.
Endnote 5
Formerly presented as part of Acacia Mining plc. or as Tanzania. As a matter of convenience, preliminary
production results are based on our 63.9% share of North Mara, Bulyanhulu and Buzwagi up until
September 30, 2019 (notwithstanding the completion of the Acacia transaction on September 17, 2019)
and our 100% share from October 1, 2019 onward.
Endnote 6
On November 28, 2019, Barrick sol d its 50% interest in Kalgoorlie. These results represent the fourth
quarter production and sales attributable to Barrick until its disposition.
BARRICK GOLD CORPORATION NEWS RELEASE
Cautionary Statements Regarding Preliminary Full Year and Fourth Quarter Production, Sales and
Costs for 2019, and Forward-Looking Information
Barrick cautions that, whether or not expressly stated, all full year and fourth quarter figures contained in
this press release including, without limitation, production levels, sales and associated costs are preliminary,
and reflect our expected full year and fourth quarter results as of the date of this press release. Actual
reported full year and fourth quarter production levels, sales and associated costs are subject to
management’s final review, as well as review by the Company ’s independent accounting firm, and may
vary significantly from those expectations because of a number of factors, including, without limitation,
additional or revised information, and changes in accounting standards or policies, or in how those
standards are applied. Barrick will provide additional discussion and analysis and other important
information about its full year and fourth quarter product ion levels and sales and associated costs when it
reports actual results on February 12, 2020. For a complete picture of the Company ’s financial
performance, it will be necessary to review all of the information in the Company ’s full year and fourth
quarter financial report and related MD&A. Accordingly, readers are cautioned not to rely solely on the
information contained herein.
Finally, Barrick cautions that this press release contains forward -looking statements with respect to: (i)
Barrick’s production and sales; (ii) costs per ounce for gold and per pound for copper; and (iii) expected
timing for completion of refurbishments at one of the smelters that processes Lumwana concentrate.
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: fluctuations in
the spot and forward price of gold, copper, 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 w hich additional engineering and other analysis is required; whether the
agreement to settle all disputes between Acacia and the Government of Tanzania (the “ GoT”) will be
legalized and executed by the GoT; the Company’s ability to successfully re-integrate Acacia’s operations;
disruption of supply routes which may cause delays in construction and mining activities at Barrick’s more
remote properties; whether benefits expected from recent transactions are realized; 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 disruption s 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;