statement on forward-looking information
Certain information contained or incorporated by reference in this fact sheet, including any information as to our strategy, projects, plans, or 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”, “plan”, “assume”, “intend”, “project”, “pursue”, “goal”, “continue”, “budget”, “estimate”, “potential”, “may”, “will”, “can”, “should”, “could”, “would”, and similar expressions identify forward-looking statements. In particular, this fact sheet contains forward-looking statements including, without limitation, with respect to: (i) the potential for Goldrush/Fourmile and Turquoise Ridge to become Tier One Gold Assets; (ii) the potential for Barrick to become the most valued gold mining business; (iii) increases to annual production at Turquoise Ridge as a result of construction of a third shaft, (iv) timing of engineering, permitting, construction and initial production at Goldrush and (v) potential mineralization, including at Fourmile..
Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of the Company. Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this fact sheet in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include but are not limited to: risks relating to the Barrick’s credit rating; local and global political and economic conditions; Barrick’s economic model and liquidity risks; fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); financial services risk; the risks associated with Barrick’s brand, reputation and trust; environmental risks; safety and technology risks; the ability to realize the anticipated benefits of the merger with Randgold Resources or implementing the business plan for Barrick following the merger, or difficulty in integrating the business of Randgold with Barrick (including the retention of key employees); changes in or enforcement of national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in Canada, the United States, the Democratic Republic of Congo, Mali and other jurisdictions in which Barrick now carries on business or in which Barrick may carry on business in the future; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law; legal
or regulatory developments and changes; the outcome of any litigation, arbitration or other dispute proceeding; the impact of any acquisitions or similar transactions; competition and market risks; the impact of foreign exchange rates; pricing pressures; the possibility that future exploration results will not be consistent with expectations; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; and business continuity and crisis management. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Such forward-looking statements should therefore be construed in the light of such factors.
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 fact sheet 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 more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this fact sheet.
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.
No statement in this fact sheet is intended as a profit forecast, profit estimate or quantified financial benefits statement.
information for US investors
Barrick’s mineral reserves
and mineral resources have been estimated in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI
43-101”), as required by Canadian securities regulatory authorities. For
United States reporting purposes, the Securities and Exchange Commission
(the “SEC”) has adopted amendments to its disclosure rules to modernize the
mineral property disclosure requirements for issuers whose securities are
registered with the SEC under the U.S. Securities Exchange Act of 1934, as
amended (the “Exchange Act”). These amendments will become effective
February 25, 2019 (the “SEC Modernization Rules”). The SEC Modernization
Rules will replace the historical property disclosure requirements for
mining registrants that are included in SEC Industry Guide 7, which will be
rescinded on February 25, 2019. As a result of the adoption of the SEC
Modernization Rules, the SEC will recognize estimates of “measured mineral
resources”, “indicated mineral resources” and “inferred mineral resources”.
In addition, the SEC will be amending its definitions of “proven mineral
reserves” and “probable mineral reserves” to be “substantially similar” to
the corresponding Canadian Institute of Mining, Metallurgy and Petroleum
definitions, as required by NI 43-101, and the JORC (2012) Code
definitions. United States investors are also cautioned that while the SEC
will recognize “measured mineral resources”, “indicated mineral resources”
and “inferred mineral resources”, investors should not assume that any part
or all of the mineral deposits in these categories will ever be converted
into a higher category of mineral resources or into mineral reserves. These
terms have a great amount of uncertainty as to their economic and legal
feasibility. Accordingly, investors are cautioned not to assume that any
“measured mineral resources”, “indicated mineral resources”, or “inferred
mineral resources” that Barrick reports are or will be economically or
legally mineable. Information contained in this
fact sheet and in the documents incorporated by reference herein containing
descriptions of Barrick’s mineral deposits may
not be comparable to similar information made public by United States
companies subject to the reporting requirements of United States federal
securities laws and the rules and regulations thereunder.
Third party data
The total cash costs comparison of
Barrick to its senior gold peers is based on data obtained from Wood
Mackenzie as of 31 August 2018. Wood Mackenzie is an independent third
party research and consultancy firm that provides data for, among others,
the metals and mining industry. Wood Mackenzie is not affiliated with
Where figures for Barrick are compared to its senior gold peers, the data
from Wood Mackenzie has been used to ensure consistency in the compared
measure across the Barrick and the comparator group. Barrick does not have
the ability to verify the Wood Mackenzie figures and the non-GAAP financial
performance measures used by Wood Mackenzie may not correspond to the
non-GAAP financial performance measures calculated by Barrick or any of the
other senior gold peers.
The scientific and technical
information contained in this factsheet has been reviewed and approved by:
Rodney Quick, mineral resource management and evaluation executive of
Barrick; Simon Bottoms, mineral resources manager: Africa and Middle East
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
A Tier One Gold Asset is a mine with a
stated life in excess of 10 years with 2017 production of at least 500,000
ounces of gold and 2017 total cash cost per ounce within the bottom half of
Wood Mackenzie’s cost curve tools (excluding state-owned and
privately-owned mines). For purposes of determining Tier One Gold Assets,
“Total cash cost” per ounce is based on data from Wood Mackenzie as of
August 31, 2018. The Wood Mackenzie calculation of “Total cash cost” per
ounce may not be identical to the manner in which Barrick calculates
comparable measures. “Total cash cost” per ounce is a non-GAAP financial
performance measure with no standardized meaning under IFRS and therefore
may not be comparable to similar measures presented by other issuers.
“Total cash cost” per ounce should not be considered by investors as an
alternative to operating profit, net profit attributable to shareholders,
or to other IFRS measures. Wood Mackenzie is an independent third party research
and consultancy firm that provides data for, among others, the metals and
mining industry. Wood Mackenzie does not have any affiliation to Barrick.
See also Endnote #2.
2. “Lowest total cash
cost” is based on data from Wood Mackenzie as of 31 August 2018. “Total
cash cost” is a non-GAAP financial performance measure with no standardized
meaning under IFRS and therefore may not be comparable to similar measures
presented by other issuers. Financial comparisons between the post-merger
Barrick and its senior gold peers are made on the basis of the data
presented by Wood Mackenzie which may not be calculated in the same manner
as Barrick calculates comparable measures. Barrick believes that total cash
cost is a useful indicator for investors and management of a mining
company’s performance as it provides an indication of a company’s
profitability and efficiency, the trends in cash costs as the company’s
operations mature, and a benchmark of performance to allow for comparison
against other companies. This non-GAAP financial measure should not be
considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS.
3. Senior gold peers
means the following companies: Agnico Eagle Mines Limited, Goldcorp Inc.,
Newcrest Mining Limited, and Newmont Mining Corporation.
base” is based on data in the publicly filed disclosure of each senior gold
peer. In calculating their respective reserves base, senior gold peers may
make assumptions different than those made by Barrick.
and mineral resources for Cortez, Goldstrike, Pueblo Viejo, Turquoise Ridge
and Goldrush estimated in accordance with National Instrument 43-101 as
required by Canadian securities regulatory authorities. Complete mineral
reserve and mineral resource data for each of these mines and projects can
be found on pages 80 to 85 of Barrick’s Fourth Quarter and Year-End 2018
Report. Mineral reserves and mineral resources for Loulo, Gounkoto and Kibali
estimated in accordance with the Australian Code for Reporting of
Exploration Results adopted by the Joint Ore Reserves Committee. The
Company has reconciled the mineral reserves and mineral resources to
Canadian Institute of Mining, Metallurgy and Petroleum Standards as
incorporated with National Instrument 43-101 and there are no material
differences. Complete mineral reserve and mineral resource data for each of
these mines and projects can be found on pages
11 (Kibali) and 6 and 8
(Loulo and Gounkoto) of Randgold’s Q4 2018 Report. In addition, mineral
reserve and mineral resource data for Randgold’s other mines and projects
(pre-merger) can be found on pages 9, 10 and 13 of Randgold’s Q4 2018
Report. All mineral reserve and mineral resource figures are at December
Cortez proven reserves of 17.6 million tonnes grading 2.01g/t, representing 1.1 million ounces of gold, and probable reserves of 127.4 million tonnes grading 1.86g/t, representing 7.6 million ounces of gold. Cortez measured resources of 3.4 million tonnes grading 1.84g/t, representing 198,000 ounces of gold, and indicated resources of 53.4 million tonnes grading 1.73g/t, representing 3.0 million ounces of gold.
Goldstrike proven reserves of 55.5 million tonnes grading 3.65g/t, representing 6.5 million ounces of gold, and probable reserves of 12.4 million tonnes grading 5.05g/t, representing 2.0 million ounces of gold. Goldstrike measured resources of 3.6 million tonnes grading 6.75g/t, representing 775,000 ounces of gold, and indicated resources of 4.6 million tonnes grading 5.80g/t, representing 857,000 ounces of gold.
Loulo proven reserves of 11 million tonnes grading 4.00g/t, representing 1.4 million ounces of gold, and probable reserves of 23 million tonnes grading 5.03g/t, representing 3.7 million ounces of gold. Loulo measured resources of 18 million tonnes grading 4.88g/t, representing 2.9 million ounces of gold, and indicated resources of 29 million tonnes grading 5.33g/t, representing 5.0 miillion ounces of gold. All reserve and resource amounts for Loulo are stated on non-attributable 100%-basis, unless otherwise noted.
Gounkoto proven reserves of 5.3 million tonnes grading 3.34g/t, representing 570,000 ounces of gold, and probable reserves of 13 million tonnes grading 4.89g/t, representing 2.0 million ounces of gold (non-attributable basis). Gounkoto measured resources of 6.2 million tonnes grading 3.22 g/t, representing 640,000 ounces of gold, and indicated resources of 19 million tonnes grading 4.39g/t, representing 2.7 million ounces of gold. All reserve and resource amounts for Gounkoto are stated on non-attributable 100%-basis, unless otherwise noted.
Kibali proven reserves of 20 million tonnes grading 4.15g/t, representing 2.7 million ounces of gold, and probable reserves of 42 million tonnes grading 4.12g/t, representing 5.6 million ounces of gold. Kibali measured resources of 20 million tonnes grading 4.60g/t, representing 3 million ounces of gold, and indicated resources of 100 million tonnes grading 3.05 g/t, representing
10 miillion ounces of gold. All reserve and resource amounts for Kibali are stated on non-attributable 100%-basis, unless otherwise noted.
Pueblo Viejo proven reserves of 61.6 million tonnes grading 2.56g/t, representing 5.1 million ounces of gold, and probable reserves of 15.1 million tonnes grading 3.05g/t, representing 1.5 million ounces of gold. Pueblo Viejo measured resources of 7.6 million tonnes grading 2.39g/t, representing 585,000 ounces of gold, and indicated resources of 93.7 million tonnes grading 2.47g/t, representing 7.4 million ounces of gold. All reserve and resource amounts for Pueblo Viejo are stated on an attributable basis, unless otherwise noted.
detail regarding Turquoise Ridge, see the Technical Report on the Turquoise
Ridge Mine, State of Nevada, U.S.A., dated March 19, 2018, and filed on
SEDAR at www.sedar.com and EDGAR at www.sec.gov on March 23, 2018.
Turquoise Ridge proven reserves of 9.0 million tonnes grading 13.62g/t, representing 4.0 million ounces of gold, and probable reserves of 7.4 million tonnes grading 12.16g/t, representing 2.9 million ounces of gold. Turquoise Ridge measured resources of 3.0 million tonnes grading 7.70g/t, representing 738,000 ounces of gold, and indicated resources of 2.4 million tonnes grading 8.23g/t, representing 645,000 ounces of gold. All reserve and resource amounts for Turquoise Ridge are stated on an attributable basis, unless otherwise noted.
Goldrush probable reserves of 6.4 million tonnes grading 9.69g/t, representing 2.0 million ounces of gold. Goldrush indicated resources 31.0 million tonnes grading 9.40g/t, representing 9.4 million ounces of gold. Goldrush inferred resources 11.87 million tonnes grading 9.31g/t, representing 3.6 million ounces of gold.