Financial Results			Q3 2019				Q2 2019				Q3 2018
Realized gold price2,3 ($ per ounce)			1,476				1,317				1,216
Net earnings (loss) ($ millions)			2,277				194				(412	)
Adjusted net earnings1 ($ millions)			264				154				89
Net cash provided by operating activities ($ millions)			1,004				434				706
Free cash flow4 ($ millions)			502				55				319
Net earnings (loss) per share ($)			1.30				0.11				(0.35	)
Adjusted net earnings per share1 ($)			0.15				0.09				0.08
Total attributable capital expenditures5 ($ millions)			397				361				372
Operating Results Gold			Q3 2019				Q2 2019				Q3 2018
Production (000s of ounces)			1,306				1,353				1,149
Cost of sales6 (Barrick’s share) ($ per ounce)			1,065				964				850
Total cash costs7 ($ per ounce)			710				651				587
All-in sustaining costs7 ($ per ounce)			984				869				785
Copper
Production (millions of pounds)			112				97				106
Cost of sales6 (Barrick’s share) ($ per pound)			2.00				2.04				2.18
C1 cash costs8 ($ per pound)			1.62				1.59				1.94
All-in sustaining costs8 ($ per pound)			2.58				2.28				2.71

Continued from page 1

Barrick president and chief executive Mark Bristow said lean, agile management teams had built on a return to the basics of mineral resource management to deliver performance improvements across the group, as well as a range of new opportunities. These included a major new discovery at Fourmile in Nevada, Life of Mine extensions at Porgera and Veladero, and the confirmation of a wide-ranging geological upside.

◾	Strong Q3 points to higher end of production and lower end of cost guidance for the year

 

◾	Debt net of cash at $3.2 billion after payment of dividend, down 14% from Q2

 

◾	Adjusted net earnings per share1 of $0.15 up 67% on Q2

 

◾	Continued efficiency improvements lead to 15% increase in copper production quarter on quarter

 

◾	Nevada Gold Mines JV delivers on production plan in first quarter of operation

 

◾	Improved performance at lower cost from Pueblo Viejo as expansion study progresses

 

◾	African and LatAm/APac operations remain on track with strong performances from Loulo-Gounkoto and Porgera

 

◾	Refocused mineral resource management and exploration delivers new discovery at Fourmile and highlights geological upside across the group

 

◾	Latest drilling indicates life of mine extensions at Porgera and Veladero

 

◾	Improved position in Dow Jones Sustainability Index as Barrick continues to roll out new sustainability initiatives

 

◾	New focus on safety and environment delivers another quarter of improvements

 

◾	Quarterly dividend increased by 25% to $0.05 per share as cash balance grows

 

“We have prepared detailed five-year plans for each region which we are sharing with the market this quarter. These will be followed by a 10-year production plan, scheduled for publication with our next annual report. The objective is to make capital allocation, budgeting and forecasting more dynamic. This, combined with the roll-out of our new information management systems, will enable us to use real-time data availability for real-time decision-making,” he said.

 

Barrick has also moved the ownership of orebody modelling, reserve and resource estimation and mine planning to the operations, with oversight from the corporate executive, in line with its policy of effective on-site management and a flat organizational structure.

Bristow said the planned disposal of non-core assets was progressing as scheduled and was expected to realize $1.5 billion or more by the end of next year.

“These are exciting times with lots of opportunities to deliver real value for our owners and stakeholders, and Barrick is strongly placed to take full advantage of these,” he said.

Conference Call and Webcast

Please join us for a conference call and webcast today at 9:00 EDT/14:00 GMT to discuss the results.

US and Canada, 1-800-319-4610

UK, 0808 101 2791

International, +1 416 915-3239

Webcast

The event will be available for replay online or by telephone at 1-855-669-9658 (US and Canada) and +1 604 674-8052 (international), access code 3391.

 

Barrick Gold Corporation today announced that its Board of Directors has declared a dividend for the third quarter of 2019 of $0.05 per share, a 25% increase on the previous quarter’s dividend, payable on December 16, 2019 to shareholders of record at the close of business on November 29, 2019.⁹

Senior Executive Vice-President and Chief Financial Officer Graham Shuttleworth said Barrick’s business continued to perform well and the increased dividend reflected its strong operating performance and growth in cashflows and is consistent with the Company’s stated financial and operating objectives.

 

Effective exploration and responsible orebody stewardship were central to the success of the group’s legacy companies - the pre-merger Barrick and Randgold - but Barrick’s geocentric focus faded over the years. The merger presented the opportunity to reinvigorate and strengthen exploration and mineral resource management, and reposition them as the starting point for optimal planning and the first link in the value chain, explains Mark Bristow, president and CEO of Barrick.

Essentially, says mineral resource management and evaluation executive Rod Quick, the geosciences - geotechnical analysis, geometallurgy and geohydrology - have been integrated, and mine designs and feasibility studies are being revised accordingly.

“Since the start of the year, we’ve strengthened the teams, appointed mineral resource managers at all sites, improved our geological knowledge and models, and started drilling these models. We’ve also re-introduced focused exploration programs for Barrick’s next Tier One¹⁰ asset,” he says.

“Already significant new mineral potential has been identified across our portfolio of operations. Exploration has delivered a new discovery close to Fourmile and Goldrush in Nevada, and the latest drilling and modellng results point to potential Life of Mine extensions at Veladero, Pueblo Viejo, Porgera, Hemlo, Loulo-Gounkoto and Kibali. At Carlin, district-scale geological compilation and integration have yielded multiple high-quality targets, and drilling is already underway.”

Executive vice president, exploration and growth, Rob Krcmarov says in addition to maximizing its existing assets, Barrick is already looking beyond the 10-year horizon in its search for new opportunities, based on the group’s broad geological knowledge across multiple world-class destinations.

“Mining is a long-term game, and we’re hunting Tier One¹⁰ assets that will deliver value at the top as well as the bottom of the inevitable cycles and will buffer Barrick against any market volatility. That means we want orebodies with quality as well as size,” Krcmarov says.

 

That is why Barrick’s energy strategy is designed not only to deliver a reliable supply of affordable power to its mines, but also to minimize the group’s carbon footprint, says metallurgy, engineering and capital projects executive John Steele.

“We’ve moved thermal power generation at the mines that need it from diesel and Heavy Fuel Oil (HFO) to natural gas wherever possible. We’re also extending regional power grids to enable our mines to link up with national systems, and introducing solar power where this can make a difference to our grid supply,” he says.

The development of the Tier One¹⁰ Kibali mine in the Democratic Republic of Congo included the construction of three run of the river hydropower stations. Tongon in Côte d’Ivoire is supplied with a mix of gas-generated thermal power and hydropower by the country’s national grid. Porgera in Papua New Guinea currently uses gas-fired thermal generation but the potential to introduce a hydropower component is being evaluated. Nevada Gold Mines can be fed by its own gas and coal fired thermal stations but typically

draws power from the Western US grid. To further improve emissions in Nevada, coal to gas conversion is being investigated. Pueblo Viejo in the Dominican Republic supplies the mine and the local grid with thermal power and recently converted from HFO to natural gas to reduce cost and carbon emission. Veladero in Argentina is being connected to grid power from neighboring Chile to eliminate its reliance on diesel-fired thermal generation. Solar power is being added to the supply mix at Loulo in Mali to reduce its diesel consumption and is also being considered in Nevada to offset thermal and grid power consumption.

“Responsible power generation is good business because it cuts costs. And because it reduces Barrick’s carbon footprint, it is also the right thing to do for our host countries and communities,” says Steele.

 

The mineral resource value-creation chain starts with the discovery of a world-class asset and culminates in its optimally efficient metallurgical extraction. Barrick has many of the gold mining industry’s Tier One¹⁰ assets and, to make the most of these, it uses a complete range of processing technologies, ranging from simple heap leaching to complex refractory ore processing in autoclaves and roasters.

 

◾	Barrick’s Nevada roasters are the world leaders in complex double refractory ore processing.

 

◾	The Nevada autoclaves process high TCM refractory sulphides with Calcium Thiosulphate leaching and Resin-in-Leach recovery.

 

◾	In Nevada, the Dominican Republic and Papua New Guinea, pressure oxidation in autoclaves is used to process single refractory sulphides.

 

◾	Barrick is at the forefront of ultra-fine grinding of partially refractory sulphides to enhance the extraction of gold at its African operations.

◾	It also runs simple milling circuits; sulphide flotation and heap leach operations.

“We’re always looking for ways to improve our efficiencies and take our processing operations to the next level. The challenge is not only to stay at the forefront of technological developments but to ensure that our processing facilities are fully integrated with our environmental and sustainability initiatives,” says Barrick president and chief executive Mark Bristow.

Current projects include a new flotation system to support the proposed expansion of Pueblo Viejo’s operations; a modification of the Mill 6 roaster at Carlin to raise throughput and improve productivity; and pushing the grind/recovery/ throughput trade-off at Twin Creeks in Nevada to deliver a lower cost per ounce of production.

 

One of the new executive team’s first acts after the merger was to define exactly what its sustainability initiatives should achieve. It set these aims out clearly:

 

◾	Barrick’s mines should create long-term value for all its stakeholders, including investors, host countries and communities, and employees.

 

◾	Environmental and social considerations should be embedded in all business decisions to ensure that high and rising expectations are met.

 

◾	Barrick must build deep partnerships with all stakeholders and act on their concerns.

“Over the past nine months we have been putting these principles into action and our efforts are paying dividends,” says group sustainability executive Grant Beringer.

“We are particularly proud that Barrick has been included in the Dow Jones Sustainability World Index for the twelfth consecutive year. The Index evaluates more than 2,500 companies and uses rigorous criteria to identify the top 10 percent performers. We’ve also been ranked as a leader for our sustainability disclosure by ISS ESG, a governance research firm.

Beringer says that while recognition is a sign that Barrick is on the right track, it is the actions that the teams at the mines take that are critical to the group’s continued success in turning its sustainability vision into a tangible reality.

 

Developing agricultural entrepreneurs in Mali and Zambia

Loulo has established an agribusiness and has trained 48 local farmers in setting up a business, production and marketing. Thirty farms have been created with credit provided by a microfinance firm. They have also been provided with water and equipment. To date, the farms have generated production of 30 tonnes of food and income of $39,000. At Barrick’s Lumwana mine in Zambia, women from the local community are being trained in vegetable and fruit production, and have been provided with a borehole, a greenhouse and storage sheds, among other items.

Bringing back quality healthcare to the Porgera Valley

The Paiam hospital in Papua New Guinea has been reopened after three years thanks to funding assistance provided by the Porgera Joint Venture (PJV) for its refurbishment and the supply and installation of new equipment. PJV also project-managed the process to facilitate the opening. Throughout its life, Porgera Mine has supported the regional health sector and has provided the funding and infrastructure to develop health services in Porgera and the Enga province.

A big win for Giant Nickel’s reclamation

Barrick has received the Jake McDonald Annual Reclamation Award from the British Columbia Technical and Research Committee for improvements it made to a reclaimed tailings facility at the historic Giant Nickel mine, which closed in 1978. The improvements took 18 months to complete and demonstrate the company’s commitment to the environment. They include a new water management infrastructure which has improved the water quality and fish habitat in the surrounding environment.

Rehabilitating El Indio

Located 4,000 meters above sea level in Chile’s Elqui Valley, the El Indio gold mine ceased operations in 2002. As there were no definitive regulations for mine closures in Chile at the time, Barrick voluntarily submitted a plan in accordance with the highest international standards. The plan provided for the dismantling of works and facilities as well as the relocation of employees. Today, more than 80% of the closure works have been completed and last year the Chilean Safety Association recognized Barrick for reaching 14 years without a Lost-Time Injury at the site.

Support for local farmers in Argentina

Veladero initiated an agricultural project in 2017 in cooperation with the Ministry of Mining and Production, local municipalities and private sector companies and associations. It involves 45 local farmers who participate in training and development programs aimed at increasing their agricultural yield and extending their distribution network. To increase production and capacity, two greenhouses and eight cold storage chambers have been constructed. Since 2018 the project has produced 400 tons of vegetables, sold for $95,000.

 

“Many of our current executives are the product of our university and vocational training bursaries and have been with the legacy companies since completing their studies. Our West and East African management teams are virtually all home-grown, as are many of those in North and Latin America,” says Bristow.

“We hunt for emerging talent at the major tertiary education institutions and we’re now extending that to the school level, to ensure that we identify and recruit the best of the best. We’re building Barrick into a model of what a modern mining business should be, and our flexible, agile management style requires the constant injection of fresh blood.”

Human capital management should be an enabler to the business. We develop our employees meaningfully through stretch assignments and targeted programs that build essential skill sets. We consistently review our talent capability critical to drive business priorities across the regions and sites, says human resources executive Darian Rich.

“Our Compass program is designed for early career professionals in exploration/geology, mine engineering and health and safety. It includes work rotations through various aspects of a function or site operations combined with individual mentoring and very specific technical and leadership development plans over a two- to three-year period. We continue to offer finance for non-finance professionals as a baseline for development in leadership positions. Annually, the operational leadership teams identify promising employees in whom to invest to strengthen our talent bench-strength. Employee identification is linked to career advancement and succession planning. They attend business management and executive leadership development programs offered by universities in Africa, Europe, the Western US and Florida for convenient access from each region.”

APPRENTICESHIP PROGRAM SHAPES

TECHNICAL CAREERS

The Pueblo Viejo apprenticeship program has proved to be a valuable tool in attracting and developing bright young minds. Carried out every second year, the program recruits people aged between 18 and 25 from the mine’s neighboring communities and certifies them in a technical discipline through both theoretical and practical training around the operation.

Three young women, all studying towards a career in welding, excelled in the program at our Pueblo Viejo mine:

 

Daridalia Batista (19)

“I never imagined studying welding,” she says. “However, I soon fell in love with it and it proves that young women are just as capable at the craft as men.” She says she was concerned at the start of her apprenticeship that she would be undermined as a woman in the male-dominated working environment. “In reality, it has been the complete opposite,” she says. “They respect us, care for us and support us. We have a really good working relationship.”

Cándida Reynosa (19)

Candida says her motivation to pursue a career in welding is because it offers a promising future. She values the importance Barrick places on safety precautions and says she can work with confidence without worrying that something will happen to her. “We have all the necessary protective equipment and training and the company’s motto of returning home safe and sound every day really resonates with me,” she says.

Darieli Sánchez (19)

Darieli, who describes herself as an adventurous and brave young woman, really values Pueblo Viejo’s apprenticeship program. “The fact that they give aspiring young people this opportunity to learn an employable skill is rare in our country and one of the biggest problems facing our youth. I am a very proud person and I’ve felt nothing but pride since joining the program because it has taught me that I can succeed as a woman in a male-dominated field,” she says.

YOUNG EMPLOYEE SUCCESS STORIES

 

 

Alexander Peña (34)

Pueblo Viejo Autoclave Maintenance Supervisor

Alexander has been working for Pueblo Viejo for more than eight years and holds the distinction of reducing an aspect of the autoclave maintenance time from two days to 15 hours. “We needed to make an internal repair of the bricks that cover the autoclaves and our initial assessments indicated that this would take 48 hours, which would greatly impact downtime. I realized that we only needed to replace the bricks in the affected area, reducing not only the required bricks from 60 to eight but also saving us a substantial amount of time,” he says.

Lauren Broncho (31)

Nevada Gold Mines Analytical Lab Supervisor

Lauren’s rapid rise through the ranks of Barrick’s Nevadan gold mines is a testament to the company’s long-standing partnership with the neighboring Native American communities. An enrolled member in the Elko Band of the TeMoak Tribe, Lauren was promoted to Analytical Lab Supervisor in October this year. Previously she worked as a lab technician, emergency response team member, trainer and relief shifter and brings to her new position a solid background in safety leadership.

INTERNS EARN FULL-TIME EMPLOYMENT

Three times a year, Pueblo Viejo invites 30 final-year university students to participate in the mine’s internship program. The objective is to give these students the opportunity to put their theoretical knowledge into practical application by working in different areas of the mine.

Two of these students outperformed over the three-month duration of the program and have since been employed on a full-time basis at the mine. They are:

 

Luis Daniel Rodríguez (24)

“My favorite subject at university was metallurgy and fortunately for me it was in this area of the mine that I was able to showcase my potential. Now I work for the mine doing condition monitoring and non-destructive tests which I fully enjoy,” he says. “Field experience is something that not all engineering students get access to and I never thought that all the theories I learnt at university could be applied so actively every day,” says Luis, who studied electromechanical engineering.

 

Caroldania Díaz (23)

“I will always recommend to young people to grab an opportunity like this with both hands because, on site, you always learn something new. The internship program helped me grow out of my shell and, because of that, I am now more empowered and confident to make decisions,” Caroldania says. The geology engineering student adds that the company’s safety ethic is what she admires most. “I like the way they treat their people. They are always looking after the safety of their workers,” she says.

KIBALI’S RISING STARS

 

 

Christelle Simuera Sifa (25)

Lab Technician

Christelle joined Kibali in 2015 as a trainee and quickly developed a reputation for high-quality work. Within six months, she was assigned as a chemist at Kibali’s metallurgical laboratory where she again excelled in her duties. Christelle now works with the metallurgical accounting team and is described by her colleagues as a value-adding member and a pleasure to be around.

 

Robert Talaguma Asana (33)

Lab Technician

Dedicated to his work and admired for his professionalism, Robert is one of the most qualified employees in Kibali’s metallurgical laboratory. He joined the mine in 2016 as a trainee and was soon promoted to Lab Technician. According to his colleagues, he always provides reliable results and the data generated from his test work can be used with full confidence to guide the process team.

Clara Kasongo Kakudji (29)

Supervisor Engineer

Clara, who is a qualified civil engineer, oversees all the construction activities at Kibali including road maintenance, housing projects and various other community development initiatives. She is also in charge of budgeting and accounting of all these developments and, despite having only joined the mine in 2017, she is showing promising potential to become a senior member of the engineering team.

 

The terms of the agreement include the payment of $300 million to settle all outstanding tax and other disputes; the lifting of the concentrate export ban; the sharing of future economic benefits from the mines on a 50/50 basis; and the

establishment of a unique, Africa-focused international dispute resolution framework.

In conjunction with the finalization of the agreement, a new operating company called Twiga Minerals Corporation

 

(Twiga) has been formed to manage the Bulyanhulu, North Mara and Buzwagi mines. (Twiga is the Swahili word for giraffe, Tanzania’s national symbol.) The GoT will acquire a free carried shareholding of 16% in each of the mines and will receive its half of the economic benefits from taxes, royalties, clearing fees and participation in all cash distributions made by the mines and Twiga. An annual true-up mechanism will ensure the maintenance of the 50/50 split.

Speaking recently after a meeting with the chairman of the Negotiating Committee of the Government of Tanzania, Prof Palamagamba Kabudi, Barrick president and chief executive Mark Bristow said the agreements introduced a new era of productive partnership with the GoT and would ensure that Tanzania and its people would share fully in the value created by the mines they hosted. It also marked the end of the long impasse between the GoT and Acacia which had led, among other things, to the closure of North Mara and the freezing of export concentrate from the two other operations.

Barrick took over the management of the mines after its buy-out of the Acacia minorities last month. Since then it has negotiated the re-opening of North Mara and is engaging with the mines’ host communities to restore their social license.

“Rebuilding these operations after three years of value destruction will require a lot of work, but the progress we’ve already made will be greatly accelerated by this agreement. Twiga, which will give the government full visibility of and participation in operating decisions made for and by the mines, represents our new partnership not only in spirit but also in practice,” Bristow said.

He noted that Tanzanian nationals were already being employed and trained to replace expatriate staff as had been done very successfully at Barrick’s other African operations.

 

The successful two-decade partnership between the government of Mali and Randgold (now Barrick) has made the gold mining industry one of the key drivers of the country’s economy, says Barrick president and chief executive Mark Bristow.

Briefing local media on the Loulo-Gounkoto complex’s current performance, Bristow said Barrick was committed to further investment in Mali. It was currently developing a new underground mine at Gounkoto, replenishing existing reserves through brownfields exploration, prospecting for another world-class discovery along the Mali/Senegal shear zone and undertaking mapping and research in the south of the country.

He cautioned, however, that Mali’s mining industry was facing many social and fiscal challenges. Overcoming these to ensure that the sector could sustain its contribution to the economy required closer cooperation between government and industry in a spirit of transparency and engagement.

Bristow noted that Barrick entered Mali through Randgold’s discovery and development of Morila, which laid the foundation for its mining industry as well as marking the first true partnership between a host country and investors in West Africa.

Since then, Barrick’s operations have paid approximately $2.7 billion in taxes, royalties and dividends to the state. Its mines currently contribute more than 40% of the country’s total gold production. In line with its commitment to creating value not only for its shareholders and the treasury but to all the other stakeholders, it pioneered the concept of building national capacity. Today all its mines in the country are managed by all-Malian executive teams. In addition, some of the key leaders in Barrick’s Africa and Middle East region are the

products of the group’s human capital development programs in Mali.

Barrick also contributes to the economy through its support for local businesses, to which it has paid approximately $190 million so far this year alone.

Likewise, it continues to invest in the community and all the villages around its mines now have schools, primary healthcare clinics and access to potable water.

At Morila, which is nearing closure, it has invested significantly in an Agripole which will provide a sustainable post-mining micro-economy for the villages around the mine. At Loulo, it has established an agricultural college which this year produced 40 farming graduates who have been deployed across 10 farms.

Turning to the operations, Bristow said in the past quarter Loulo-Gounkoto had again set production records and was on track to meet its production guidance of 690,000¹¹ ounces of gold for 2019. Successful exploration was replacing depleted reserves, ensuring that its remaining life exceeded 10 years.

Loulo-Gounkoto is one of the world’s largest gold mining operations and one of the largest businesses in West Africa in terms of revenue, employment and taxes and dividends paid to the state.

Bristow said that progress had been made in the search for a global and amicable settlement of the tax and fiscal issues between Barrick and the Government of Mali and negotiations on the settlement’s implementation were nearing finalization.

 

Briefing local media in Kinshasa recently, Barrick president and chief executive Mark Bristow said Kibali - already a world leader in automation - was taking this to the next level with the commissioning of a Newtrax system which would provide real-time data collection, enhance predictive maintenance, track and manage the fleet, and implement a digital safety system with personnel tracking. The mine is also working towards a proof of concept of a highly advanced system which will allow manned and unmanned operations in the same area.

“In line with our policy of local employment and advancement, we continue to transfer the specialized skills required for automated mining to our Congolese workforce. The success of this policy is evident in Kibali’s consistently excellent performance and shows what can be achieved with a world-class asset in a remote and under-developed region of Africa,” Bristow said. Positive drill results over the last few years from Ikmava-Kalimva as well as KCD underground are expected to result in reserve growth net of annual depletion.

Ongoing exploration has positioned Kibali for continued reserve replacement for years to come, with further potential open pit extensions in Gorumbwa, Sessenge and the potential KCD super pit, in addition to the definition of the new KCD underground 11000 Lode. He noted that Kibali was maintaining its solid health, safety and environmental record despite the size and complexity of the operation.“Following the transition of political power in the DRC, which happened peacefully in the face of many challenges, we plan to engage the new administration in a review of the 2018 mining code. We believe it is still possible to arrive at a dispensation which is more equitable to the industry,” he said.

 

The visit provided the opportunity for Senator Cortez Masto to engage with NGM leadership to learn more about the social and economic benefits generated by the company for the state of Nevada, and its focus on safe and sustainable operations to create value for all stakeholders. In addition, the senator heard about NGM’s commitment to growing and training its current and future workforce in Nevada.

Benefits from the formation of the world’s largest gold mining complex, a joint venture between Barrick Gold Corporation (61.5%) as the operator and Newmont Goldcorp Corporation (38.5%), were shared with the Senator.

Greg Walker, NGM executive managing director, said the meeting was another step towards building and maintaining strong partnerships with key stakeholders and community organizations in northern Nevada and across the state.

“Nevada Gold Mines was honored to host Senator Cortez Masto,” said Walker. “We appreciate her interest in our current and future business. With our operations and employees based here in Nevada, we are proud of our contribution to the state’s economy as well as the ongoing development of local communities. We look forward to maintaining our leadership role as a key employer and business partner in the region and an active and responsible corporate citizen to the state and the nation.”