Second Quarter Report 2018
SECOND QUARTER REPORT 2018
All amounts expressed in U.S. dollars unless otherwise indicated
Barrick Reports Second Quarter 2018 Results
• Barrick reported a net loss of $94 million ($0.08 per share), and adjusted net earnings1 of $81
million ($0.07 per share) for the second quarter.
• The Company reported second quarter revenues of $1.71 billion, net cash provided by operating activities
("operating cash flow") of $141 million, and negative free cash flow2 of $172 million.
• Gold production in the second quarter was 1.07 million ounces, at a cost of sales applicable to gold3
of $882 per ounce, all-in sustaining costs4 of $856 per ounce, and cash costs4 of $605 per ounce.
• Copper production was 83 million pounds, at a cost of sales applicable to copper3 of $2.45 per pound,
all-in sustaining costs5 of $3.04 per pound, and C1 cash costs5 of $2.10 per pound.
• Based on further positive drill results, Barrick is announcing a new, high grade gold discovery at Fourmile,
located within the Cortez District in Nevada. The Company has also allocated additional funding for
drilling at the project over the remainder of 2018.
• Growth projects in Nevada and Dominican Republic continue to progress according to schedule and
within budget.
• Subsequent to the quarter end, total debt has been reduced from approximately $6.4 billion to $5.8
billion, bringing Barrick's total debt repayments over the past five years to $10 billion.
• Full-year gold production and cost guidance remains unchanged at 4.5-5.0 million ounces, at a cost of
sales3 of $810-$850 per ounce, all-in sustaining costs4 of $765-$815 per ounce, and cash costs4 of
$540-$575 per ounce.
• Full-year copper production is expected to be 345-410 million pounds, at a cost of sales3 of $2.00-$2.30
per pound, all-in sustaining costs5 of $2.55-$2.85 per pound, and C1 cash costs5 of $1.80-$2.00 per
pound.
TORONTO, July 25, 2018 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) ("Barrick" or the "Company")
today reported second quarter results for the period ending June 30, 2018. Gold production and costs for the
quarter were in line with expectations, with earnings and cash flow impacted by planned maintenance activities
at Barrick Nevada and Pueblo Viejo. The Company remains on track to meet full-year gold production guidance,
with higher production and lower costs expected in the second half of 2018.
Our Nevada growth projects at Cortez, Goldrush, and Turquoise Ridge continued to advance according to
schedule and within budget, underpinning the next generation of profitable production from this core region
for Barrick. In addition, our pipeline continues to grow with the announcement today of a new, high grade
gold discovery at Fourmile, located just two kilometers north of the Goldrush project in Nevada. This discovery
demonstrates the significant untapped geological potential of Barrick's properties in Nevada, where the
BARRICK SECOND QUARTER 2018 2 PRESS RELEASE
Company is evaluating a project to increase processing capacity in order to accommodate new production from
organic projects, and bring forward production from stockpiles. Prefeasibility level studies in support of a plant
expansion at the Pueblo Viejo mine in the Dominican Republic are also advancing, with a pilot heap leach pad
now in operation at the site.
Partnerships form a core element of our strategy to drive long-term value. On July 9, Barrick and Shandong
Gold Group signed an enhanced strategic cooperation agreement, reflecting Barrick's unique focus on creating
distinctive, enduring, and trust-based relationships with China and China's best companies, as we jointly explore
opportunities to enhance long-term value for our respective owners, and for our government and community
partners. Under the agreement, Shandong is currently completing an independent evaluation focused on the
potential to develop a mining project at Lama in Argentina, including a high-level evaluation of potential synergies
between Lama and the nearby Veladero operation.
OUTLOOK
Our 2018 consolidated gold production guidance remains unchanged at 4.5-5.0 million ounces, at a cost of
sales3 of $810-$850 per ounce, cash costs4 of $540-$575 per ounce, and all-in sustaining costs4 of $765-$815
per ounce.
We expect gold production and costs to improve steadily over the second half of the year, driven by stronger
performance at Barrick Nevada and Pueblo Viejo. Gold production in the third quarter is anticipated to be around
1.2 million ounces.
At Barrick Nevada, throughput and grade is expected to improve due to the completion of scheduled maintenance
shutdowns in the first half of the year, as well as increased production from the Cortez Hills open pit. At Pueblo
Viejo, we expect an increase in quarter-over-quarter production as we transition to higher grades in Phase Five
and Six of the Moore Pit. Third quarter throughput is expected to remain in line with the second quarter as we
complete the second of two scheduled autoclave maintenance shutdowns for the year. We anticipate higher
grades at Pueblo Viejo to persist into the fourth quarter, with higher throughput. Full processing capacity has
also been restored at the Porgera Joint Venture earlier than initially expected, following the earthquake that
struck Papua New Guinea in late February.
We expect to produce 345-410 million pounds of copper in 2018 at a cost of sales3 of $2.00-$2.30 per pound,
C1 cash costs5 of $1.80-$2.00 per pound, and all-in sustaining costs5 of $2.55-$2.85 per pound. Copper
production is anticipated to improve progressively over the third and fourth quarters, driven by a steady
improvement in grade and crusher reliability at Lumwana, as well as an optimization of stacking procedures at
Zaldívar.
Total attributable capital expenditure guidance6 for 2018 remains unchanged at $1.40-$1.60 billion, including
mine site sustaining capital7 of $0.95-$1.10 billion, and project capital expenditures8 of $450-$550 million.
We are adjusting our 2018 effective income tax rate guidance to 44-46 percent, compared to our initial guidance
of 41-43 percent, reflecting lower spot gold prices and sales mix.
FINANCIAL HIGHLIGHTS
The Company reported a net loss of $94 million ($0.08 per share) in the second quarter and adjusted net
earnings1 of $81 million ($0.07 per share). Operating cash flow was $141 million. Lower adjusted net earnings
and operating cash flow compared to the prior-year period primarily reflect the impact of lower gold sales. In
BARRICK SECOND QUARTER 2018 3 PRESS RELEASE
addition, while total direct mining costs were in line with the prior-year period, direct mining costs on a per
ounce basis increased, primarily due to the impact of fewer ounces sold, as well as expenses associated with
planned maintenance at the Barrick Nevada roaster and the Pueblo Viejo autoclaves, and higher fuel costs. This
was partially offset by higher realized gold prices9, lower income tax expense, and lower depreciation as a result
of lower sales volumes. While income tax expenses were lower than the prior-year period, our second quarter
effective tax rate increased from 46 percent in 2017 to 48 percent in 2018, bringing our 2018 year-to-date
effective tax rate to 44 percent.
Significant adjusting items impacting net earnings in the second quarter of 2018 included (pre-tax and non-
controlling interest effects):
• $75 million in foreign currency translation losses primarily related to the significant weakening of the
Argentinean peso;
• $59 million in net impairment charges primarily related to the Kabanga project (a joint venture between
Barrick and Glencore) and Acacia's Nyanzaga project; and
• $43 million in other expense adjustments, including $28 million relating to staffing reductions and office
closures associated with the implementation of our decentralized operating model.
During the second quarter of 2018, we implemented a number of organizational reductions to advance the
implementation of our decentralized operating model. We completed an extensive review of all positions sitting
above operations, reallocating roles where appropriate, eliminating those no longer required and closing a
number of smaller offices. We are maintaining our full-year general and administrative expense guidance, as
the expected savings from these changes are offset by approximately $30 million of severance expense.
Refer to page 48 for a full list of reconciling items between net earnings and adjusted net earnings for the
current and prior-year periods.
The Company recorded negative free cash flow2 of $172 million in the second quarter, driven by lower operating
cash flows as described above. This was partially offset by lower capital expenditures compared to the prior-
year period.
BALANCE SHEET UPDATE
At the end of the second quarter, the Company had a consolidated cash balance of approximately $2.1 billion10.
Subsequent to the end of the quarter, Barrick completed a make-whole repurchase of the outstanding principal
of approximately $629 million on the Company's 4.40 percent notes due in 2021. As result, our total debt has
been reduced from approximately $6.4 billion to $5.8 billion, further strengthening the Company's balance
sheet. Over the past five years, Barrick has reduced its total debt by $10 billion.
Following this repayment, the Company has less than $100 million in debt due before 202011, and more than
85 percent of our outstanding debt matures after 2032.
OPERATING HIGHLIGHTS
Barrick produced 1.07 million ounces of gold in the second quarter of 2018 at a cost of sales3 of $882 per
ounce, all-in sustaining costs4 of $856 per ounce, and cash costs4 of $605 per ounce, in line with expectations.
Gold production in the second quarter was impacted by lower grade and recovery at the Barrick Nevada oxide
mill, and scheduled maintenance shutdowns at the Barrick Nevada roaster and the Pueblo Viejo autoclaves.
Both shutdowns were successfully optimized, reflecting the Company's focus on increasing the overall availability
BARRICK SECOND QUARTER 2018 4 PRESS RELEASE
of our processing facilities by consolidating work and extending the time between planned maintenance
activities.
Second quarter production at the Porgera Joint Venture was impacted by a significant earthquake that occurred
in late February, resulting in a change to the mine's full-year guidance. However, full processing capacity has
been restored at the mine, earlier than initially anticipated. A rock fall at the Kalgoorlie open pit in mid-May
also impacted production in the second quarter, with lower mining rates expected for the remainder of the
year.
During the second quarter, the Turquoise Ridge mine implemented a more efficient system for the shipping of
ore for processing. Previously, ore was stockpiled on site before being shipped to Newmont's Twin Creeks facility
for processing. Ore will now be shipped directly to Twin Creeks, eliminating double handling of the material.
This change will eliminate one month of stockpiled material in 2018, resulting in a one-time change in inventory
that will increase costs this year.
On a per ounce basis, cost of sales applicable to gold3 was higher than the prior-year period primarily due to
the impact of fewer ounces sold. Direct mining costs on a per ounce basis also increased, primarily due to the
impact of fewer ounces sold, costs associated with planned maintenance at the Barrick Nevada roaster and the
Pueblo Viejo autoclaves, and higher fuel costs. Higher all-in sustaining costs4 compared to the prior-year period
primarily reflect the impact of higher direct mining costs on a per ounce basis, as described above.
The Company produced 83 million pounds of copper in the second quarter, at a cost of sales3 of $2.45 per
pound, all-in sustaining costs5 of $3.04 per pound, and C1 cash costs5 of $2.10 per pound. Lower copper
production in the second quarter was primarily the result of unplanned downtime at the Lumwana crusher,
and fewer heap leach tonnes processed at Zaldívar, partially offset by an increase in production at Jabal Sayid.
On a per pound basis, cost of sales applicable to copper3 increased primarily due to higher processing and
maintenance costs at Lumwana, and higher unit production costs as a result of lower sales at Zaldívar. Higher
all-in sustaining costs primarily reflected higher direct mining costs applicable to copper.
Please see page 35 of Barrick's second quarter MD&A for individual operating segment performance details.
Detailed mine site guidance information can be found in Appendix 1 of this press release.
Gold Second Quarter 2018 2018 Guidance
Production12 (000s of ounces) 1,067 4,500 - 5,000
Cost of sales applicable to gold3 ($ per ounce) 882 810 - 850
Cash costs4 ($ per ounce) 605 540 - 575
All-in sustaining costs4 ($ per ounce) 856 765 - 815
Copper
Production12 (millions of pounds) 83 345 - 410
Cost of sales applicable to copper3 ($ per pound) 2.45 2.00 - 2.30
C1 cash costs5 ($ per pound) 2.10 1.80 - 2.00
All-in sustaining costs5 ($ per pound) 3.04 2.55 - 2.85
Total Attributable Capital Expenditures6 ($ millions) 332 1,400 - 1,600
BARRICK SECOND QUARTER 2018 5 PRESS RELEASE
EXPLORATION AND GROWTH
NEVADA, U.S.A.
Fourmile - More high grade drill results confirm new discovery
Based on further positive drill results, Barrick has upgraded the Fourmile exploration project from a target to a
discovery. Located approximately two kilometers north of Goldrush in Nevada, drilling continues to intersect
high grade results, confirming the continuity of mineralization in the project area, and increasing our confidence
that Fourmile and Goldrush form part of a seven-kilometer-long mineralized system. Recent drilling has
encountered high grade mineralization across a number of stratigraphic horizons in multiple holes covering an
area 600 meters in length by 200 meters in width.
Assay result highlights from the second quarter include 13.9 meters grading 56.8 grams per tonne of gold,
16.6 meters grading 71.6 grams per tonne of gold, and 16.8 meters grading 57.9 grams per tonne of gold.
Please see endnote 13 for a significant intercepts table including recent Fourmile drilling.
Based on the success of our 2018 drilling campaign to date, we are allocating an additional $10 million to
Fourmile exploration this year, increasing the total number of planned holes from 30 to 47. Further infill and
wide spaced step out drilling will continue for the remainder of 2018.
Turquoise Ridge (75 percent Barrick)14 - Shaft sinking contractor mobilizing on site, high grade
exploration results extend deposit
Barrick is constructing a third shaft at Turquoise Ridge, which will allow the mine to roughly double annual
production to more than 500,000 ounces per year (100 percent basis), at an average cost of sales3 of around
$720 per ounce, and average all-in sustaining costs4 of roughly $630 per ounce. Thyssen Mining, the shaft
sinking contractor, is now mobilizing on site. Dewatering is advancing according to plan, and construction of
surface infrastructure for electrical distribution and other mine utilities is well advanced. The capital cost for this
project is estimated to be $300-$325 million (100 percent basis). Initial production from the new shaft is expected
to begin in 2022, with sustained production from 2023.
At the end of 2017, Turquoise Ridge had 5.9 million ounces of proven and probable gold reserves15 (Barrick's
75 percent share), at an average grade of 15.5 grams per tonne—the highest reserve grade in the Company's
operating portfolio, and among the highest in the gold industry. The mine added 2.1 million ounces of proven
and probable gold reserves in 2017 through drilling (Barrick's 75 percent share), and the deposit remains open
in multiple directions, including at depth.
Mine exploration drilling at Turquoise Ridge in 2018 has continued to expand the deposit in multiple directions.
The North Zone Getchell program is targeting an open area of the Getchell Fault up-dip in the northwest portion
of the mine. The first hole of the program intersected 16.5 meters at 15.3 grams per tonne of gold. This intercept
extends mineralization along the fault by 120 meters, with further drilling planned along the same structure.
In 2017, exploration drilling discovered mineralization 180 meters northeast of the deposit as part of the Foot
Wall Pond Extension program. So far this year, drilling has extended known mineralization to the northeast by
another 120 meters, with an intercept of 6.7 meters grading 13.9 grams per tonne gold. Follow-up drilling will
also continue in this area.
BARRICK SECOND QUARTER 2018 6 PRESS RELEASE
Goldrush - Decline development commenced
When in full operation, the Goldrush underground project is expected to produce approximately 500,000 ounces
of gold per year, at a cost of sales3 of roughly $750 per ounce, and all-in sustaining costs4 of approximately
$640 per ounce. Portal pad construction for the twin declines was completed in the first quarter of 2018, and
initial decline development commenced in the second quarter. Decline construction is expected to accelerate
following the mobilization of the decline development contractor during the third quarter. Exploration twin
declines will provide access to the orebody at depth, which will enable further drilling, as well as the conversion
of existing resources to reserves. These declines can be converted into production declines in the future. Goldrush
currently has proven and probable gold reserves of 1.5 million ounces15, and measured and indicated gold
resources of 9.4 million ounces15, with significant potential to identify additional resources once underground
access to drill the deposit is established.
Cortez Deep South16 - East decline complete, west decline advancing
The Deep South project is expected to contribute approximately 300,000 ounces of annual gold production
when fully ramped up between 2024 and 2028, at a cost of sales3 of $650 per ounce, and all-in sustaining
costs4 of $580 per ounce. Deep South will utilize infrastructure which has already been approved under current
plans to expand mining in the Lower Zone of the Cortez underground mine, including the new Rangefront twin
declines and other underground infrastructure already under construction. During the second quarter, west
decline development and mass excavations in support of the project continued to advance. Initial production
from Deep South is expected in 2022.
DOMINICAN REPUBLIC
Pueblo Viejo (60 percent Barrick) - Pre-oxidation heap leach and pilot flotation plant civil works
underway
Barrick is advancing prefeasibility level studies for a plant expansion at the Pueblo Viejo mine that would increase
throughput by 50 percent to 12 million tonnes per year, allowing the mine to maintain average annual gold
production of 800,000 ounces after 2022 (100 percent basis). The project involves the addition of a pre-oxidation
heap leach pad with a capacity of eight million tonnes per year, a new mill and flotation concentrator with a
capacity of four million tonnes per year, and additional tailings capacity. The project has the potential to convert
roughly seven million ounces of measured and indicated resources to proven and probable reserves (100 percent
basis).15
In support of the prefeasibility study, we have completed the construction of a pilot pre-oxidation heap leach
pad to test metallurgy and recoveries, and are now irrigating ore. Civil works for the pilot flotation circuit have
also commenced, and a tender process for structural, mechanical, and electrical contracts is now underway.
ENHANCED STRATEGIC COOPERATION AGREEMENT WITH SHANDONG GOLD
Earlier this month, Barrick announced that it had entered into an enhanced strategic cooperation agreement
with Shandong Gold Group Co., Ltd., deepening Barrick's partnership with one of China's leading mining
companies. Key elements of the enhanced strategic cooperation agreement include:
• Lama Evaluation
Shandong Gold will carry out an independent evaluation of the potential to develop a mining project
at Lama in Argentina, including a high-level evaluation of potential synergies between Lama and the
nearby Veladero operation. Following the completion of this study, Barrick and Shandong may agree
to conduct additional studies and technical work to evaluate a number of development options. Any
BARRICK SECOND QUARTER 2018 7 PRESS RELEASE
decision by Shandong to invest in the project would be subject to additional agreement between the
Parties.
• Strengthening Collaboration Between Barrick and Shandong Teams
Reflecting a mutual commitment to operational excellence, safety, efficiency, and best-in-class mining
practices, Barrick and Shandong have agreed to choose one of Shandong's mines to serve as a platform
for learning and collaboration between the two companies. Barrick and Shandong have also agreed to
establish additional mechanisms to foster greater communication and knowledge-sharing between
respective management and technical teams.
• Strengthening Cooperation on Investment Opportunities
Building on a prior agreement to evaluate joint investment in organic mining projects currently owned
by Barrick and Shandong, the two companies have agreed to consider opportunities to work together
on acquisition opportunities or potential asset sales, if both agree it is in their collective best interests,
and would enhance the value of such an opportunity.
HEMLO ROYALTY ACQUISITION
Barrick has acquired a 2.5 percent gross revenue royalty for $14.9 million on certain surface and mineral lands
adjacent to the Hemlo property in Ontario that was originally granted to Newmont Mining Corporation as part
of the land acquisition in 2015. The royalty covers approximately 37 percent of Barrick's overall land holding at
Hemlo and includes large, highly prospective areas immediately west of the current operation. Drilling up to
800 meters beyond the limits of the existing resource has partly validated that ore grade mineralization is
continuous. The area covered by the royalty could represent potentially significant mine life extensions.
TECHNICAL INFORMATION
The scientific and technical information contained in this press release has been reviewed and approved by:
Geoffrey Locke, P. Eng., Manager, Metallurgy of Barrick; Rick Sims, Registered Member SME, Vice President,
Reserves and Resources of Barrick; and Robert Krcmarov, FAusIMM, Executive Vice President, Exploration and
Growth of Barrick—each a "Qualified Person" as defined in National Instrument 43-101 – Standards of Disclosure
for Mineral Projects.
BARRICK SECOND QUARTER 2018 8 PRESS RELEASE
Appendix 1
2018 Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS
Production
(000s ounces)
Cost of sales3
($ per ounce)
All-in
sustaining costs4
($ per ounce)
Cash costs4
($ per ounce)
Barrick Nevada 2,100 - 2,255 760 - 810 610 - 660 470 - 530
Turquoise Ridge (75%) 240 - 270 720 - 770 700 - 780 630 - 670
Pueblo Viejo (60%) 585 - 615 720 - 750 590 - 620 425 - 450
Veladero (50%) 275 - 330 970 - 1,110 960 - 1,100 560 - 620
Lagunas Norte 230 - 270 740 - 870 670 - 780 420 - 490
Porgera (47.5%) 190 - 215 950 - 1,000 950 - 1,000 740 - 790
Kalgoorlie (50%) 280 - 330 775 - 825 750 - 800 715 - 765
Acacia (63.9%) 275 - 305 970 - 1,020 935 - 985 690 - 720
Hemlo 200 - 220 1,010 - 1,070 1,135 - 1,235 840 - 890
Golden Sunlight 35 - 50 1,270 - 1,370 1,540 - 1,710 1,310 - 1,420
Total Gold 4,500 - 5,00017 810 - 850 765 - 815 540 - 575
COPPER PRODUCTION AND COSTS
Production
(millions of pounds)
Cost of sales4
($ per pound)
All-in
sustaining costs5
($ per pound)
C1 cash costs5
($ per pound)
Zaldívar (50%) 115 - 130 2.30 - 2.50 2.15 - 2.35 ~1.80
Lumwana 190 - 225 1.90 - 2.15 2.80 - 3.10 1.95 - 2.20
Jabal Sayid (50%) 40 - 55 1.85 - 2.50 1.70 - 2.30 1.40 - 1.80
Total Copper 345 - 41017 2.00 - 2.30 2.55 - 2.85 1.80 - 2.00
CAPITAL EXPENDITURES
($ millions)
Mine site sustaining 950 - 1,100
Project 450 - 550
Total Attributable Capital Expenditures6 1,400 - 1,600