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    ABX   CA0679011084

BARRICK GOLD CORPORATION

(ABX)
  Report
Delayed Toronto Stock Exchange  -  04:00 2022-09-28 pm EDT
20.37 CAD   +5.16%
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Barrick Gold : Q2 Press Release

08/08/2022 | 06:55am EDT
CONTINUED ON PAGE 3

2022

Q2Results Release

SUSTAINABILITY FOCUS DRIVES

BARRICK'S PERFORMANCE

ALL AMOUNTS EXPRESSED IN U.S. DOLLARS

TORONTO, August 8, 2022 - A stronger Q2 performance across the portfolio has kept Barrick on course to achieve its annual gold and copper production guidance while continuing to progress its key growth projects.

Gold production for the quarter was higher than Q1 at 1.04 million ounces - driven mainly by Carlin and Turquoise Ridge in Nevada, Veladero in Argentina, and Bulyanhulu and North Mara in Tanzania - and is expected to grow further in the second half of the year. Copper production came to 120 million pounds.

Operating cash flow was $924 million and free cash flow1 was $169 million for the quarter. Net earnings per share were $0.27 and adjusted net earnings per share2 were $0.24. A dividend of $0.20 per share was declared for the quarter on the back of the strong operating performance and net cash of $636 million.3 During the quarter, Barrick repurchased $182 million in shares under the $1 billion share buyback scheme introduced earlier this year. It also repatriated the balance of Kibali's surplus cash from the Democratic Republic of Congo.

ON TRACK TO ACHIEVE

2022 PRODUCTION TARGETS

COPPER PORTFOLIO DELIVERS WITH GROWING PROSPECTIVITY

Q2 OPERATING CASH FLOW

Q2 FREE CASH FLOW1

$924 MILLION

$169 MILLION

Q2 NET EPS

Q2 NET CASH3

$0.27

$636 MILLION

Q2 ADJUSTED NET EPS2

$0.24

$0.20 PER SHARE

~$182 MILLION

DIVIDEND FOR Q2

$1 BILLION BUYBACK PROGRAM11

OF SHARES REPURCHASED UNDER

4

5

6

7

NGM GROWTH

GLOBAL

TRANSFORMED

REKO DIQ

OPPORTUNITIES

EXPLORATION

TANZANIAN

ALLIANCE

REACH

ASSETS

Key Performance Indicators

Financial and Operating Highlights

Financial Results

Q2 2022

Q1 2022

Q2 2021

Realized gold price4,5

1,861

1,876

1,820

($ per ounce)

Net earnings

488

438

411

($ millions)

Adjusted net earnings2

419

463

513

($ millions)

Net cash provided by operating

924

1,004

639

activities ($ millions)

Free cash flow1

169

393

(19)

($ millions)

Net earnings per share

0.27

0.25

0.23

($)

Adjusted net earnings

0.24

0.26

0.29

per share2 ($)

Attributable capital

587

478

518

expenditures6,7 ($ millions)

Operating Results

Q2 2022

Q1 2022

Q2 2021

Gold

Production5

1,043

990

1,041

(000s of ounces)

Cost of sales (Barrick's share)5,8

1,216

1,190

1,107

($ per ounce)

Total cash costs5,9

855

832

729

($ per ounce)

All-in sustaining costs5,9

1,212

1,164

1,087

($ per ounce)

Copper

Production5

120

101

96

(millions of pounds)

Cost of sales (Barrick's share)5,8

2.11

2.21

2.43

($ per pound)

C1 cash costs5,10

1.70

1.81

1.83

($ per pound)

All-in sustaining costs5,10

2.87

2.85

2.74

($ per pound)

Q2 2022 Results Presentation

Webinar and Conference Call

President and CEO Mark Bristow will host a virtual presentation on the results today at 11:00 EDT, with an interactive webinar linked to a conference call. Participants will be able to ask questions.

Go to the webinar

US and Canada (toll-free), 1 800 319 4610

UK (toll-free), 0808 101 2791

International (toll), +1 416 915 3239

The Q2 2022 presentation materials will be available on Barrick's website at www.barrick.comand the webinar will remain on the website for later viewing.

Best Assets

  • Stronger Q2 performance across the portfolio keeps Barrick on track to achieve 2022 production targets
  • Goldrush Notice of Availability published in Federal Register starting the public comment period
  • Significant progress made with the Pueblo Viejo expansion project and additional tailings storage facility
  • Copper portfolio delivers with growing prospectivity
  • Continued focus on brownfields and greenfields exploration, driven by energized new leadership, delivers results

Leader in Sustainability

  • Launched sustainability-linked credit facility
  • Progress made with newly developed Scope 3 emissions reduction roadmap
  • North Mara received award for the best community health outreach program in Tanzania
  • Public hearings completed for Pueblo Viejo's new tailings storage facility
  • Year-on-yearimprovement in water reuse and recycling
  • Seamless leadership succession underpins Barrick's management bench strength

Delivering Value

  • Operating cash flow of $924 million and free cash flow1 of $169 million for the quarter
  • Net earnings per share of $0.27 and adjusted net earnings per share2 of $0.24 for the quarter
  • Remaining surplus cash balance repatriated from Kibali
  • Net cash of $636 million3 supports a $0.20 per share dividend for Q2 2022
  • ~$182 million of shares repurchased under our $1 billion buy-back program11

BARRICK SECOND QUARTER 2022

2

PRESS RELEASE

CONTINUED FROM PAGE 1

In the Dominican Republic, the Pueblo Viejo expansion project advanced with the commencement of the public consultation process and the selection of a preferred site for the new tailings storage facility, subject to the completion of an environmental and social impact assessment. The massive project has the potential to extend the mine's life to 2040 and beyond with an estimated minimum average annual production of 800,000 ounces.12

In Nevada, the public review period of the Goldrush project has started with the record of decision expected in the first half of 2023, when the production timetable will be confirmed. The definitive agreements underlying the framework agreement between Barrick and the governments of Pakistan and Balochistan on the Reko Diq project are being finalized. Once this process has been completed and the necessary legalization steps have been taken, Barrick will update its feasibility study on what is one of world's largest undeveloped copper-gold deposits, with first production expected in 2027/2028.

Barrick is continuing to expand its global exploration footprint with a strengthened team. In North America the search has

extended from Nevada to active projects in Canada. The intensified exploration drive in Latin America led to an entry into the Guiana Shield, and in Africa & the Middle East, new projects have been initiated in Zambia, Tanzania and Egypt. A new Asia Pacific team is making progress at Reko Diq, as well as Japan, while also looking for fresh opportunities elsewhere in this region.

Reviewing the quarter, president and chief executive Mark Bristow said the critical scrutiny of ESG and sustainability disclosures was intensifying in a climate of skepticism about so-called greenwashing. Against this background, Barrick's annual Sustainability Scorecard, an industry first, continues to report the group's performance transparently and objectively against a wide range of standard metrics.

"We've taken the leadership in integrating the various aspects of ESG and managing these complex issues in a measured and holistic manner," he said.

"There are challenging times ahead, but Barrick faces them with strong and agile leadership, a robust balance sheet, solid Life of Mine plans, a reliable cash flow and a strategy focused on sustainability and value creation."

QUARTERLY DIVIDEND OF $0.20 PER SHARE MAINTAINED

Barrick today announced the declaration of a dividend of $0.20 per share in respect of performance for the second quarter of 2022.

The dividend, which is unchanged from Q1, is consistent with the Company's Performance Dividend Policy announced at the start of the year.

The Q2 2022 dividend will be paid on September 15, 2022 to shareholders of record at the close of business on August 31, 2022.13

"On the back of our strong operating performance, we are once again able to provide a leading dividend yield to our shareholders, whilst still maintaining a strong balance sheet," says senior executive vice-president and chief financial officer Graham Shuttleworth. "We believe this continues to show the benefit of the dividend policy that we announced in February 2022, including the guidance it provides to our shareholders on future dividend streams."

BARRICK SECOND QUARTER 2022

3

PRESS RELEASE

NGM BUILDING NEW GROWTH OPPORTUNITIES

Three years after establishing the joint venture that created the world's largest gold mining complex, Nevada Gold Mines ("NGM") is stepping out on its next phase by identifying new opportunities for discoveries and additions.

In one of the largest and most complex mergers in the history of the industry, assets, operations, systems, people and cultures were combined successfully to build a business that will unlock the full potential of the region and create value for all stakeholders, deliver real jobs and be a key partner to Nevada. Its workforce of more than 7,000 already makes it one of the state's largest employers.

In its short life, NGM has produced 10 million ounces of gold15 and generated significant free cash. Greatly improved knowledge of the orebodies support robust 10-year plans and increased the pre-merger life of mine substantially. At the existing operations, brownfields exploration is replacing reserves depleted by mining and identifying new targets while the greenfields team is hunting further afield for a new Tier One14 discovery in North America to further augment the existing NGM portfolio.

NGM's journey to its next growth phase is being guided by a strengthened management team, led by Christine Keener, who joined Barrick earlier this year as chief operating officer of its North America region. Peter Richardson has been appointed incoming executive managing director of NGM, replacing Greg Walker who retires at the end of the year.

A new North America organizational structure, incorporating NGM, has been designed to integrate and strengthen mineral resource management, operational and project leadership to drive continued performance improvements and support regional growth.

NGM continues to invest in people, both current and future employees, through education partnerships and training programs. It supports the College of Southern Nevada and the Clark County School District, where high school students can get certificates in industrial maintenance or diesel technology, and has renewed its partnership with Discovery Education® for the Nevada Department of Education's outreach program. It is also working with the University of Nevada and the Great Basin College in Elko to develop mining-centered programs. Internally, NGM has established training mines and facilities for underground and surface mining, and process operations.

During the first half of the year, NGM posted and improved operational performance at all of its sites apart from Cortez, which is transitioning from Pipeline to Cortez Pits and the next phase of Crossroads. Going forward, the Goldrush project will drive further improvements at Cortez.

BARRICK SECOND QUARTER 2022

4

PRESS RELEASE

BARRICK EXTENDS GLOBAL EXPLORATION REACH

Barrick continues to expand its global exploration footprint as a renewed and re-energized team hunts down opportunities across an expanding global footprint.

In North America, the search has expanded from Nevada to active projects in Canada. The intensified exploration drive in Latin America led to an entry into the Guiana Shield, and in Africa & the Middle East, new projects have been initiated in Zambia, Tanzania and Egypt. A new Asia Pacific team is making progress towards the reconstitution and restart of Reko Diq in Pakistan, as well as Japan, while also looking for other fresh opportunities.

President and chief executive Mark Bristow said in pursuit of Barrick's global growth strategy, significant changes have been made in the senior management of the exploration team, led by Joel Holliday.

Three of the four regional exploration teams - Latin America, Africa & Middle East and Asia Pacific - are now being managed by new vice-presidents, two of whom were internal appointments. In Canada, the recently created positions of exploration manager and new opportunities manager were

filled and a dedicated growth manager for the Latin America and Asia Pacific regions has been appointed.

"Our geological teams now have strength in depth and we're building a pipeline of high-potential managers and technical specialists. The highly experienced new appointees are already driving significant change and this renewed energy and focus is already delivering robust results," Bristow said.

The exploration strategy is designed to:

  • deliver short to medium term projects that will support improvements in mine plans;
  • make new discoveries for Barrick's Tier One gold and copper portfolio;
  • optimize the value of major undeveloped projects; and
  • identify and secure emerging opportunities early in their value curve.

PUEBLO VIEJO EXPANSION PROJECT

CONTINUES TO ADVANCE

Pueblo Viejo's conversion into a long-life mine is progressing after discussions with the Dominican Republic's government identified a site for the new tailings storage facility and the terms of reference for the environmental and social impact assessment were published.

The mine was heading for closure because its vast resources could not be converted to reserves due to limitations on its current tailings storage facility. The massive integrated expansion has the potential to extend the mine's life to 2040 and beyond with an estimated minimum average annual production of 800,000 ounces.12

This means that Pueblo Viejo, long the country's largest corporate taxpayer, will be able to continue delivering value to its Dominican stakeholders for generations to come. In line

with Barrick's partnership philosophy, it is engaging with the local communities and authorities to keep them informed about the project.

In spite of a contractor workforce of 3,500 being added to the mine's 2,700 permanent employees, Pueblo Viejo is maintaining an exemplary safety record. At the end of this year's second quarter, the project had been injury free for 5 million hours or 10 months.

BARRICK SECOND QUARTER 2022

5

PRESS RELEASE

Disclaimer

Barrick Gold Corporation published this content on 08 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2022 10:54:04 UTC.


© Publicnow 2022
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Financials (USD)
Sales 2022 11 753 M - -
Net income 2022 1 665 M - -
Net cash 2022 417 M - -
P/E ratio 2022 14,3x
Yield 2022 4,56%
Capitalization 26 291 M 26 291 M -
EV / Sales 2022 2,20x
EV / Sales 2023 2,13x
Nbr of Employees 17 500
Free-Float 99,4%
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Mean consensus OUTPERFORM
Number of Analysts 25
Last Close Price 14,88 $
Average target price 22,19 $
Spread / Average Target 49,1%
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Managers and Directors
Dennis Mark Bristow President, CEO & Non-Independent Director
Graham Patrick Shuttleworth Chief Financial Officer
John Lawson Thornton Co-Chairman
Gustavo A. Cisneros Independent Director
Joseph Brett Harvey Lead Independent Director
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