b a r r i c k . b u i l t t o l a s t . b a r r i c k . b ... · barrick gold corporation...
TRANSCRIPT
Barrick Gold Corporation PresentationGoldman, Sachs & Co. - Metals and Mining Investor Forum
Palm Beach, Florida – May 21, 2001
1
B A R R I C K . B U I L T T O L A S T . B A R R I C K . B U I L T T O L A S T .
Market Cap: US$6.5b
Toronto, New York, LondonSwitzerland, Paris
Leading Gold Producer
B A R R I C K . B U I L T T O L A S T .
Tanzania
ArgentinaChilePeru
US
Canada
B A R R I C K . B U I L T T O L A S T .
1991 2000
OPERATING CASH FLOW
S+P 500
Barrick
3x2x
B A R R I C K . B U I L T T O L A S T .
ProduceLow
Sell High
Build for our shareholders
in any environment
Highest possible return on capital
B A R R I C K . B U I L T T O L A S T .
2000 FINANCIAL REVIEW
n Operating earnings: $334m
n Cash flow: $705m
n Cash position: $623m
n Free cash flow: $530m
Barrick Gold Corporation PresentationGoldman, Sachs & Co. - Metals and Mining Investor Forum
Palm Beach, Florida – May 21, 2001
2
B A R R I C K . B U I L T T O L A S T .
2000 OPERATIONS REVIEW
n Production: 3.7m ounces
n Cash costs: $145 per ounce
n Reserves: 58.5m ounces
B A R R I C K . B U I L T T O L A S T .
2000 OPERATIONS REVIEW
GoldstrikePierina
Bulyanhulu
B A R R I C K . B U I L T T O L A S T .
DISCIPLINED DECISIONS
n Pascua-Lama delayed
n $1.1b non-cash provision
B A R R I C K . B U I L T T O L A S T .
TWO YEAR REVIEW
n Committment to Gold business
n Committment to Premium GoldSales Program
B A R R I C K . B U I L T T O L A S T .
Flexibility + Growth + Discipline
B A R R I C K . B U I L T T O L A S T .
Plan for the future with certainty
Barrick Gold Corporation PresentationGoldman, Sachs & Co. - Metals and Mining Investor Forum
Palm Beach, Florida – May 21, 2001
3
B A R R I C K . B U I L T T O L A S T .
PREMIUM GOLD SALES PROGRAM
n Average premium: $67 per ounce
n 2000 additional revenue: $300m
n 13 years of additional revenue: $2b
B A R R I C K . B U I L T T O L A S T .
PREMIUM GOLD SALES PROGRAM
n 2001-2002: $340 per ounce
n Beyond 2002: $360 per ounce
n Today’s position will generate over$1 billion in additional revenue
B A R R I C K . B U I L T T O L A S T .
BUILT TO GROW
B A R R I C K . B U I L T T O L A S T .
BULYANHULU
B A R R I C K . B U I L T T O L A S T .
BULYANHULU
Tripled Reserves(millions of ounces)
10.0
2000
7.5
3.6
B A R R I C K . B U I L T T O L A S T .
BULYANHULU
Produce
DevelopAcquire
$185
Barrick Gold Corporation PresentationGoldman, Sachs & Co. - Metals and Mining Investor Forum
Palm Beach, Florida – May 21, 2001
4
B A R R I C K . B U I L T T O L A S T .
Profit Margin
BULYANHULU$260
B A R R I C K . B U I L T T O L A S T .
CORPORATE RESPONSIBILITYGoldstrike
B A R R I C K . B U I L T T O L A S T .
CORPORATE RESPONSIBILITYBulyanhulu
B A R R I C K . B U I L T T O L A S T .
B A R R I C K . B U I L T T O L A S T . B A R R I C K . B U I L T T O L A S T .
BARRICK’S COMPETITIVE ADVANTAGE
n Predictable, reliable cash flows
n High-margin operations
n Growth in any environment
Barrick Gold Corporation PresentationGoldman, Sachs & Co. - Metals and Mining Investor Forum
Palm Beach, Florida – May 21, 2001
5
B A R R I C K . B U I L T T O L A S T .
GOLDPRICE
Develop Pascua-Lama
GOLDPRICE
Acquisition Opportunities
BARRICK’S COMPETITIVE ADVANTAGE
B A R R I C K . B U I L T T O L A S T .
B A R R I C K . B U I L T T O L A S T . B A R R I C K . B U I L T T O L A S T .
Consolidation
Competition
INDUSTRY ENVIRONMENT
B A R R I C K . B U I L T T O L A S T .
INDUSTRY ENVIRONMENT
n Rodeon Bulyanhulun Pascua-Lama
n Depleting reservesn Declining
exploration
1. Pipeline Issue
BARRICK INDUSTRY
B A R R I C K . B U I L T T O L A S T .
n Strongest balance sheet
n Highest free cash flow
BARRICK
n Declining cashn Rising debt
INDUSTRY
2. Strength IssueINDUSTRY ENVIRONMENT
Barrick Gold Corporation PresentationGoldman, Sachs & Co. - Metals and Mining Investor Forum
Palm Beach, Florida – May 21, 2001
6
B A R R I C K . B U I L T T O L A S T .
Organic Growth
Acquisition Growth
Strength + Flexibility + Discipline
B A R R I C K . B U I L T T O L A S T .
Adjust Tactics toMarket Circumstances
Maintain Principles and Strategies
GAME PLAN FOR THE FUTURE
B A R R I C K . B U I L T T O L A S T .
FINANCIAL OBJECTIVES
n Increase earnings and cash flow
n Improve return on equity
n Maintain strong balance sheet
GAME PLAN FOR THE FUTURE
B A R R I C K . B U I L T T O L A S T .
InternalGrowth
Under OurControl
GAME PLAN FOR THE FUTURE
B A R R I C K . B U I L T T O L A S T .
n In control of our destiny
n Strong, steady free cash flow
n Achievable organic growth
n Plan for strategic acquisitions
BARRICK GOLD
B A R R I C K . B U I L T T O L A S T .