free cash flowfree cash flow 361 1.04 300 · q1q1 q2 q2q2 2002 production q1q1 2002 costs...

Barrick Gold CorporationCIBC World Markets – Whistler Conference – February 2003

1

Q4Q4

• earnings• earnings$54M $193M

20022002

• operating cashflow

• operating cashflow $589M$195M

year-end resultsyear-end results

CAPEXCAPEX$228$228MM

FREE CASH FLOWFREE CASH FLOW$361$361MM

“A”-rated balance sheet“A”-rated balance sheet

$300M

CASH POSITIONCASH POSITION$1.04$1.04 B B

forward sales programforward sales program

SMALLERSIMPLER 82%unhedgedunhedged hedgedhedged18%



2

total forward sales programtotal forward sales program

25%

REDUCEDREDUCED

66 M ozM oz

EXTRA REVENUEEXTRA REVENUE$168$168MM

gold pricegold price

SUPPLY / DEMAND

SOFT U.S. DOLLAR

EQUITIES DOWN

POTENTIAL REFLATION

COMMODITY PRICES UP

SUPPLY / DEMAND

SOFT U.S. DOLLAR

EQUITIES DOWN

POTENTIAL REFLATION

COMMODITY PRICES UP


PRODUCTIONDELIVERED ATPRODUCTIONDELIVERED AT

$360ROLL

FORWARDOPTION


Q1Q1

Q4Q4

gold pricegold price

MARK-TO-MARKET

MARK-TO-MARKET

RISING PRICESRISING PRICES

UNHEDGEDUNHEDGED

HEDGEDHEDGED

gold price leveragegold price leverage

70M oz


3

gold price leveragegold price leverage gold price leveragegold price leverage

== $90-100 M$90-100 M$25GOLD PRICEGOLD PRICE

operationsoperations

• increased reserves

• advanced development projects

• increased reserves

• advanced development projects

Q3Q3 Q3Q3Q4Q4

1.601.60

Q4Q4

$174$174

Q2Q2 Q2Q2Q1Q1

2002 production2002 production

Q1Q1

2002 costs2002 costs


5.7M oz

Q1Q1 Q2Q2 Q3Q3 Q4Q4

2002 production2002 production

$177/oz

Q1Q1 Q2Q2 Q3Q3 Q4Q4

2002 costs2002 costs

operationsoperations reserve additionsreserve additions

Alto ChicamaAlto Chicama

VeladeroVeladero

AustraliaAustralia

GoldstrikeGoldstrikeOtherOther

10.9M oz10.9M oz


4

reserve additionsreserve additions

20012001

82.382.3

20022002

86.986.9


PIERINAESKAY CREEKROUND MT.

PIERINAESKAY CREEKROUND MT.

BULYANHULUHEMLO

PLUTONICMEIKLE

BULYANHULUHEMLO

PLUTONICMEIKLE


optimization of assetsoptimization of assets

production flexibilityproduction flexibility

better informationbetter information


• increased backfilling

• more operating stopes

• greater production flexibility

• increased backfilling

• more operating stopes

• greater production flexibility

• advancing development• advancing development

• production: 5.4 - 5.5 M oz– closure of 5 mines

• cash costs: $180 - 190 / oz– higher royalties and other costs

• production: 5.4 - 5.5 M oz– closure of 5 mines

• cash costs: $180 - 190 / oz– higher royalties and other costs

2003 outlook2003 outlook

• production: 1.2 M oz– lower grades at Pierina

and Goldstrike

• cash costs: $190 - 195 / oz

• production: 1.2 M oz– lower grades at Pierina

and Goldstrike

• cash costs: $190 - 195 / oz

first quarter 2003first quarter 2003


5

• operating CAPEX: $218 M• operating CAPEX: $218 M

• development CAPEX: $168 M• development CAPEX: $168 M

• exploration: $100-110 M• exploration: $100-110 M

2003 outlook2003 outlook

$386 M$386 M

ALTO CHICAMAALTO CHICAMA

$100-$100- $110 million$110 million

2003 exploration program2003 exploration program

• 5-year timeline

• 4 new mines

• 5-year timeline

• 4 new mines

development plandevelopment plan

• 2 million new ounces

• $125 per ounce

• 2 million new ounces

• $125 per ounce

development plandevelopment plan

Alto ChicamaAlto Chicama

20052005

500500@

$130CowalCowal

20052005

270270@

$170

VeladeroVeladero

20062006

530530@

$155

Pascua-LamaPascua-Lama

20082008

800800@

$85

outlookoutlook

STRONG BALANCE SHEET

INCREASING RESERVES

DEVELOPMENT PROJECTS

LONG-LIFE, LOW-COST MINES

STRONG BALANCE SHEET

INCREASING RESERVES

DEVELOPMENT PROJECTS

LONG-LIFE, LOW-COST MINES

Certain statements included herein, including those regarding, production,realized gold prices and costs constitute "forward looking statements"within the meaning of the United States Private Securities LitigationReform Act of 1995. Such forward looking statements involve known andunknown risks, uncertainties and other factors that may cause the actualresults, performance or achievements of Barrick or of the gold miningindustry to be materially different from future results, performance orachievements expressed or implied by those forward looking statements.These risks, uncertainties and other factors include, but are not limited to,changes in the worldwide price of gold or certain other commodities andcurrencies and the risks involved in the exploration, development andmining business. These factors are discussed in greater detail in Barrick'smost recent Annual Information Form and "Management's Discussion andAnalysis of Financial and Operating Results" on file with the U.S. Securitiesand Exchange Commission and Canadian provincial securities regulatoryauthorities.

Certain statements included herein, including those regarding, production,realized gold prices and costs constitute "forward looking statements"within the meaning of the United States Private Securities LitigationReform Act of 1995. Such forward looking statements involve known andunknown risks, uncertainties and other factors that may cause the actualresults, performance or achievements of Barrick or of the gold miningindustry to be materially different from future results, performance orachievements expressed or implied by those forward looking statements.These risks, uncertainties and other factors include, but are not limited to,changes in the worldwide price of gold or certain other commodities andcurrencies and the risks involved in the exploration, development andmining business. These factors are discussed in greater detail in Barrick'smost recent Annual Information Form and "Management's Discussion andAnalysis of Financial and Operating Results" on file with the U.S. Securitiesand Exchange Commission and Canadian provincial securities regulatoryauthorities.

Forward looking statementsForward looking statements

free cash flowfree cash flow 361 1.04 300 · q1q1 q2 q2q2 2002 production q1q1 2002 costs...

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