CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain - - PDF document

Fourth Quarter 2013 Results and 2014 Outlook

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and 2014 Outlook

Conference Call / Webcast – February 13, 2014

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained or incorporated by reference in this presentation, including any information as to our strategy, projects, plans

• r future financial or operating performance, constitutes "forward-looking statements”. All statements, other than statements of historical

fact, are forward-looking statements. The words “believe”, "expect", “anticipate”, “contemplate”, “target”, “plan”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the company, 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. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold and copper or certain other commodities (such as silver, diesel fuel and electricity); changes in national and local government legislation, taxation, controls, regulations, expropriation or nationalization of property and political or economic developments in Canada, the United States and other jurisdictions in which the company does or may carry on business in the future; p , j p y y y ; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; 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; adverse changes in our credit rating; the impact of inflation; fluctuations in the currency markets; operating or technical difficulties in connection with mining or development activities; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits; contests over title to properties, particularly title to undeveloped properties; risk of loss due to acts of war terrorism sabotage and civil disturbances; changes in U S dollar interest title to undeveloped properties; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; changes in U.S. dollar interest rates; risks arising from holding derivative instruments; litigation; business opportunities that may be presented to, or pursued by, the company; our ability to successfully integrate acquisitions or complete divestitures; employee relations; availability and increased costs associated with mining inputs and labor; and; the organization of our African gold operations and properties under a separate listed

• company. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including

environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold/copper concentrate losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) cathode or gold/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 presentation 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 discussion of some of the factors underlying forward-looking statements.

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The company 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.

Fourth Quarter 2013 Results

Jamie Sokalsky Ammar Al-Joundi Rob Krcmarov Jim Gowans

President and CEO Executive Vice President and CFO Senior Vice President Global Exploration Executive Vice President and COO

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Reshaping Barrick’s Future

Disciplined capital allocation framework continues to

be at the core of every decision be at the core of every decision

Shift in strategy provided head start to prepare for

lower gold prices lower gold prices

Prioritizing free cash flow and profitable production

T f i B i k i t l il

Transforming Barrick into a leaner, more agile

company

Better protected against price downside more Better protected against price downside, more

strongly positioned for the upside

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2013 Scorecard

Priority Actions Taken/ Result

A hi

d i d 2013 id

Operating Excellence

Achieved improved 2013 guidance Flatter operating model Successful turn-around at Lumwana De-levered balance sheet with $3.0B equity offering R d

d d t d d t t iti

Financial Flexibility

Reduced and extended near-term maturities Reduced budgeted costs by ~ $2.0B Temporary suspension of Pascua-Lama improves

near-term cash flow

Portfolio

Mine plans and reserves at $1,100/oz focus on

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Portfolio Optimization

profitable production while preserving optionality

Sold non-core assets for total consideration of ~ $1.0B

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Fourth Quarter Results/2013 Highlights

Strong Q4 operating results:

– Gold production of 1 71 Moz at AISC of $899/oz(1) – Gold production of 1.71 Moz at AISC of $899/oz(1) – Copper production of 139 Mlbs at C1 cash costs of $1.81/lb(1)

Q4 adjusted net earnings of $0 41B ($0 37/share)(1)

Q4 adjusted net earnings of $0.41B ($0.37/share)

Q4 net loss of $2.83B ($2.61/share) includes $2.82B

• f impairment charges
• f impairment charges

Q4 adjusted operating cash flow of $1.09B(1) and

• perating cash flow of $1.02B

p g $

2013 gold reserves: 104.1 Moz(2) at $1,100/oz Met improved 2013 operating guidance

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Met improved 2013 operating guidance

(1) See final slide # 1. (2) See final slide # 3.

2013 Gold Performance vs Guidance

AI SC(1) (US$/oz)

~ 11%

1,000-

Adjusted Operating Costs(1,2)

(US$/oz)

Production (Moz)

7.17

7.0-

Original

~ 11%

900- 975 1,000 1,100

(US$/oz) Original Actual

7.0 7.4

915

Revised

975

Actual

915

610-

~ 7%

575- 600 660

Original Revised Actual

566

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400 400

(1) Percentages calculated based on mid-point of guidance ranges. (2) See final slide # 1.

2013 Copper Performance vs Guidance

Production(1) (Mlbs)

539

C1 Cash Costs(1)

($US/lb)

C3 Fully Allocated Costs(1,2) ($US/lb)

Revised

520- 550 480

~ 5%

Actual

539

2 40 2.60- 2.85

~ 8%

O i i l Original

480- 540 2.10- 2 30

~ 11%

2.40- 2.60

Actual

2.42

Original Revised Original

1.90- 2.00 2.30

Revised Actual

1.92

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(1) Percentages calculated based on mid-point of guidance ranges. (2) See final slide # 1.

400 1.0 1.0

Lumwana – Sustained Improvements

C1 Costs ($/lb) Production (Mlb) $4.00 80

New mine plan

2013 production of 260

Mlbs at C1 cash costs of

$3.50 70

p adopted

Mlbs at C1 cash costs of $2.29/lb

Similar production at

$2 50 $3.00 50 60

New leadership appointed

lower C1 cash costs expected in 2014 Si ifi t t

$2.00 $2.50 40 50

Significant cost

reductions:

changed mine plan and

$1.50 30

changed mine plan and reduced waste stripping

terminated major mining

contractor

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Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13

$1.00 20

contractor

improved fleet productivity

Portfolio Optimization

Ongoing portfolio management is fundamental to our

business model business model

The objective is to retain assets which hold longer

term shareholder value term shareholder value

Mines reduced to 19 by mid-2014 from 27 in 2013

di ested Da lot G ann Smith La le s Pl tonic – divested Darlot, Granny Smith, Lawlers, Plutonic, Tulawaka, Kanowna(1) and Marigold(1) – closing Pierina g

Focused on improving capital and operating

efficiencies at existing assets

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(1) Announced an agreement to sell.

2013 Reserves and Resources(1)

Conservative $1,100 per ounce gold price reserve

assumption reflects commitment to maximize risk- p adjusted returns and free cash flow

Gold

Moz P&P Reserves 104.1 M&I Resources 99.4 Inferred Resources 31.9

Copper

Blb

pp

P&P Reserves 14.0 M&I Resources 6.9

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(1) See final slide # 3.

Inferred Resources 0.2

Profit Before Ounces

Gold Reserves (Moz)(1)

1 4 0

13%

Lower gold price

4%

Below return

2%

Increased

2%

Additions

1%

assumption

6%

Depletion in 2013 threshold Increased Costs Divestitures

1 0 4 All reserve All reserve

reductions transferred to

resources;

preserves option to access

2 0 1 2

at

2 0 1 3

at

these ounces at higher gold prices in the future

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at $1,500/oz

Current

at $1,100/oz

(1) See final slide # 3.

2014 Exploration Focused on Nevada

Reduced budget of

$200-$240 million(1) focused

G ld t ik

Turquoise Ridge

$ $

• n high quality targets

Goldrush resources:

d b 6 0 0

Goldstrike

Elko Carlin Battle Mtn.

– increased by 1.6 Moz to 10.0 Moz measured & indicated(2) – 5.6 Moz inferred(2)

Bald Mtn.

Cortez

Ruby Hill

AREA ENLARGED RIGHT (1) Total budget (about 15% will be capitalized). See final slide # 6. (2) See final slide # 3

Ruby Hill

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Round Mountain

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High Quality Portfolio

Five Core Mines 2013: 55% of total at average AISC of < $700/oz 2013: 55% of total at average AISC of < $700/oz 2014E: ~ 60% of total at average AISC of $750-$800/oz

VELADERO PUEBLO VI EJO LAGUNAS NORTE GOLDSTRI KE CORTEZ

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High Quality Portfolio

2014e: 6.0-6.5 Moz of gold at AISC of $920-$980/oz(1)

~ 60%

5 core mines 5 core mines at AISCe of $750-$800/oz

~ 20%

6 mines at AISCe of $900

~ 20%

6 mines at AISCe of AISCe of $900

• $950/oz

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(1) See final slide # 7.

> $1,100/oz

Pascua-Lama: Full Ramp-Down by Mid-2014

Temporary suspension improves near term cash flow Expect to incur costs of ~ $0.30B(1) in 2014

Expect to incur costs of $0.30B in 2014

Construction will resume under a phased approach

when project economics improve

Evaluating opportunities to improve risk-adjusted

returns including strategic partnerships, royalty/ streaming deals streaming deals

(1) See final slide # 2.

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Fourth Quarter 2013 Results

Adjusted net earnings:

$0 41B ($0 37/sh)

Gold AI SC

($US/oz)

Copper C1 Costs

($US/lb)

$0.41B ($0.37/sh)

Net loss:

$2.83B ($2.61/sh)

1,048

~ 14%

1.93

~ 6%

$ 8 ($ / )

Operating cash flow

(OCF): $1.02B

~ 14%

1.81

Adjusted OCF: $1.09B Gold production:

899

p 1.71 Moz

Copper production:

39 lb

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139 Mlbs

800

Q4-12 Q4-13

1.50

Q4-12 Q4-13

Q4 Impairment Charges(1)

($ billions) Gold Copper Total Assets Assets Pascua-Lama 0.90

• 0.90

Porgera 0.60

• 0.60

g Veladero 0.30

• 0.30

Other gold assets 0.17

• 0.17

J b l S id 0 30 0 30 Jabal Sayid

• 0.30

0.30 Total assets 1.97 0.30 2.27 Goodwill – Aus-Pacific 0.55

• 0.55

Total impairment 2.52 0.30 2.82

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(1) Presented on an after-tax basis and net of non-controlling interest and based on gold, silver and copper assumptions of $1,300/oz, $23/oz and $3.25/lb, respectively.

Increased Financial Flexibility

Generated $4.2B of operating cash flow in 2013 ~ $2.0B of reductions to 2013 budgeted capital and

costs $4 0B d dit f ilit t d d t 2019

$4.0B undrawn credit facility extended to 2019 Significantly lower 2014 cash outlay for Pascua-Lama Termed out $3.0B in debt in 2013 $3.0B equity offering used to reduce near-term debt

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Increased Financial Flexibility

Net debt reduced by ~ 21% (1) through proceeds from

equity offering

ff h d l d b

(2)

q y g

Eliminates ~ $2.5B of debt repayments over next 5 years

Post-Offering Scheduled Debt Repayments(2)

6.0 7.0 3.0 4.0 5.0

$1.0B

1.0 2.0 3 0

$0.3B

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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+

(1) Based on debt outstanding as of Sept. 30, 2013. Includes Barrick’s share of Pueblo Viejo project financing and excludes capital leases. (2) Effective as of Dec. 31, 2013.

2014 Outlook(1)

Gold

Production: 6 0 6 5 Moz

Production: 6.0-6.5 Moz AISC: $920-$980/oz Adjusted Operating Costs: Adjusted Operating Costs:

$590-$640/oz

Copper

Production 470-500 Mlbs

C1 h t $1 90 2 10/lb

C1 cash costs $1.90-2.10/lb C3 fully allocated costs:

$2 50 $2 75/lb

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$2.50-$2.75/lb

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(1) See final slide # 5.

2014 Outlook(1)

Total capex reduced by ~ $2.5 billion

(1)

($ millions)

2014E

(1)

2013 Minesite sustaining 2,000-2,200 2,418 Minesite expansion 300-375 468 Projects 100-125 2,114

Capex 2,400-2,700 5,000

Tax rate ~ 50%

(2)

35% Tax rate 50% 35% Finance costs 800-825 657 Exploration & Evaluation 200-240 215

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p G&A 380-400 401

(1) See final slide # 5. (2) See final slide # 4.

The Next Phase

Capital

Prioritizing cash flow and profitable production

Capital discipline

Strategic scenario planning to maximize cash flow in any price environment

High quality

Well positioned in current gold price cycle

quality assets

AI SC remains the lowest of senior producers

Cost reduction

I mplementing further cost reduction targets

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reduction

Evaluating options to streamline further

Footnotes

1. Adjusted net earnings, adjusted net earnings per share, adjusted operating cash flow, all-in sustaining costs per

• unce (“AISC”), adjusted operating costs per ounce, C1 cash costs per pound and C3 fully allocated cash costs per

pound are non-GAAP financial performance measures with no standardized definition under IFRS. In the past, Barrick used the term “total cash costs” to describe its adjusted operating cost measure. We are using the term “adjusted used the term total cash costs to describe its adjusted operating cost measure. We are using the term adjusted

• perating costs” to describe this measure but we have not changed the manner in which the measure is calculated.

See pages 63-72 of Barrick’s Fourth Quarter 2013 Report. 2. Approximately 25 percent is expected to be capitalized. Actual expenditures will be dependent on a number of factors, including environmental and regulatory requirements. 3. Calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory

• authorities. For a breakdown, see pages 155-160 of Barrick’s Fourth Quarter 2013 Report.

4. The company’s effective income tax rate is highly sensitive to changes in the gold price. The effective income tax rate in 2014 is expected to be about 50 percent based on a gold price of $1,300 per ounce. Assuming a $1,250 per

• unce average gold price in 2014, the effective income tax rate is anticipated to increase to about 55 percent.

g g p , p p 5. 2014 guidance is based on gold, copper, silver and oil price assumptions of $1,300/oz, $3.25/lb, $20/oz, and $100/bbl, respectively, a AUS:US exchange rate of $0.91 and an ARS:US exchange rate of 8.5:1. 6. Barrick’s exploration programs are designed and conducted under the supervision of Robert Krcmarov, Senior Vice President, Global Exploration of Barrick. , p 7. Excludes ounces from Kanowna, Marigold, Plutonic and Pierina and about $60/oz in general and administrative costs.

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