History

2011

In April 2011, Barrick announced an agreement to acquire Equinox Minerals through an all-cash offer of C$8.15 per share. The Equinox transaction was a unique opportunity to acquire a large, producing asset and a development stage asset in an environment of strong copper fundamentals and improves Barrick’s copper leverage while maintaining the Company’s exposure to gold. The Lumwana mine is a high quality, long-life mine with significant expansion and resource growth potential and provides Barrick with a major presence in Zambia, one of the most prospective copper regions in the world.

In April, the Company secured a new $2 billion revolving credit facility with an interest rate of LIBOR plus 1.25% and in June, issued an aggregate of $4.0 billion in debt securities, consisting of $700 million of 1.75% notes due in 2014, $1.1 billion of 2.90% notes due in 2016, $1.35 billion of 4.40% notes due in 2021 and $850 million of 5.70% notes due in 2041. This low cost financing will enhance returns from the Equinox acquisition. Barrick completed the acquisition in July and is in the process of integrating the Lumwana mine and Jabal Sayid project into the Australia Pacific regional business unit.

With its Q2 2011 results, the Company maintained its 2011 gold production guidance of 7.6-8.0 million ounces at total cash costs of $450-$480 per ounce¹, and reduced its net cash cost guidance to $290-$320 per ounce² as a result of additional copper production from Lumwana following the Equinox acquisition. Barrick has increased its 2011 copper guidance to 455-475 million pounds at a total cash cost of $1.55-$1.70 per pound¹ from ~300 million pounds at total cash costs of $1.35-$1.45 per pound¹. Lumwana is expected to produce 155-175 million pounds at total cash costs of $1.75-$1.95 per pound¹ from June 1 to the end of 2011.

The Company is targeting growth in annual gold production to 9.0 million ounces³ within five years.

2010

In 2010, Barrick met its original operating guidance for higher gold production and lower cash costs than in 2009. The Company produced 7.8 million ounces of gold at total cash costs of $457 per ounce¹ or net cash costs of $341 per ounce² and produced 393 million pounds of copper at total cash costs of $1.11 per pound¹.

The average gold price increased 26% in 2010 while full year adjusted net income rose 81% to $3.28 billion⁴ and adjusted operating cash flow increased 65% to $4.78 billion⁵ from 2009, demonstrating the Company's exceptional leverage to the gold price. Full year adjusted net income translated to a higher return on equity of 19%⁶ from 12% in 2009. Reported net income and operating cash flow in 2010 were $3.27 billion and $4.13 billion, respectively.

Barrick was added to the Dow Jones Sustainability Index – World for the third consecutive year in 2010 and maintained its listing on the Dow Jones Sustainability Index – North America, for the fourth year in a row. Barrick also became the only Canadian mining company to be ranked among the top 100 companies in the world for its sustainability and performance by the NASDAQ OMX CRD Global Sustainability Index.

Other significant milestones in 2010 include: the creation of African Barrick Gold (ABG), an Africa-focused company, in which Barrick holds a 73.9% interest; the acquisition of an additional 25% interest in the Cerro Casale Project in Chile for an aggregate 75% ownership; the completion of the Cortez Hills project in Nevada; the advancement of the world-class Pueblo Viejo and Pascua-Lama projects; and the move from semi-annual dividend policy to a quarterly dividend policy with a 20% increase in annual dividend⁷.

2009

In 2009, Barrick met its original gold and copper production and cost targets and achieved some significant milestones. In addition to delivering the Buzwagi mine on time and on budget, Barrick significantly advanced its Pueblo Viejo project and advanced its Pascua-Lama project into construction. During 2009, Barrick also grew the industry’s largest reserves which are now 100% unhedged with the elimination of the Gold Hedges in the last quarter of 2009. The Company reported record adjusted net income of $1.8 billion¹ and record adjusted operating cash flow of $2.9 billion², up 9% and 29% over 2008, respectively.

Barrick was added to the Dow Jones Sustainability Index – World in 2009 for the second consecutive year and maintained its listing on the Dow Jones Sustainability Index – North America for the third year in a row. The Company also achieved a 25% reduction in lost time injury rates over 2008.

2008

In 2008, Barrick met original gold production guidance and generated record operating cash flow of $2.2 billion. Early in the year, the Company acquired the remaining 40% interest in the highly prospective Cortez property in Nevada. Three advanced projects, Buzwagi, Cortez Hills, and Pueblo Viejo, are in construction and are expected to contribute lower cost production over the next three years.
 

2007

In 2007, Barrick met original production and cost guidance, and expanded its project pipeline with the addition of a 51% interest in the large gold-copper deposit, Cerro Casale, from the acquisition of Arizona Star.

The Company also expanded its footprint in the highly prospective region of Papua New Guinea with the purchase of an additional 20% stake in the Porgera mine (bringing total ownership to 95%) and an exploration land package of more than 5,300 square kilometers.

2006

In 2006, Barrick acquired Placer Dome Inc., adding twelve new mines and a number of advanced exploration and development projects to its global portfolio. The combined Company has the size, scale and financial strength to capitalize on industry opportunities and deliver value from its assets, people and projects.

2005

In 2005, Barrick met its original production and cash cost targets and completed development of three new mines on schedule and largely within budget, and continued to make progress with its other development projects. These new mines made a significant contribution to production, earnings and cash flow for the Company.

2004

In 2004, Barrick met its original production and cash cost targets and made significant progress with its development projects. During 2004, the Company also increased reserves through the continued success of its exploration and district-development strategies.

2003

In 2003, Barrick met its production and total cash cost targets for the year, advanced its development projects, and implemented a new organization design using Regional Business Units in keeping with the Company’s growing global footprint.

2002

In 2002, Barrick announced a significant grassroots discovery, Lagunas Norte, on its Alto Chicama District in north-central Peru, which it had acquired earlier. The Company also created a unified district, the Frontera District, which straddles the Chile-Argentina border and contains both Pascua-Lama and Veladero. Pascua-Lama is one of the largest undeveloped gold and silver mining properties in the world.

2001

In 2001, Barrick merged with Homestake Mining Company, and added mines in North America, South America and Australia to its global portfolio. The Australian assets included Kalgoorlie Consolidated Gold Mines (KCGM), a joint venture property, plus three operating mines and the Cowal Property, currently in development. The Barrick-Homestake merger created a combined company with the industry’s only A-rated balance sheet, a portfolio of large, low-cost properties, and commanding land positions in prolific gold-producing regions of the world.

2000

In 2000, in an extension of its district development approach, Barrick acquired Pangea Goldfields Inc., a mining exploration company with properties in Tanzania, Canada and Peru. As part of the acquisition, the Company acquired a 70 percent interest in the Tulawaka exploration property, located 200 road kilometres from the Bulyanhulu Mine. Barrick took Tulawaka through the development phase, and brought it into production in first quarter, 2005.

1999

In 1999, Barrick expanded to Africa, acquiring Sutton Resources Ltd., an exploration company with mineral properties in Tanzania, including the Bulyanhulu Gold Project. At the time of acquisition, the project’s gold reserves were 3.8 million ounces. Eighteen months later, Barrick had increased reserves to 10 million ounces and currently stands at 10.6 million ounces. Bulyanhulu began production in April 2001.

1996

In 1996, Barrick expanded its South American presence, acquiring Arequipa Resources Ltd., which had exploration properties in Peru, including Pierina. Within four months, Barrick had confirmed 6.5 million ounces of gold into reserves. Pierina began production in November 1998.

1994

In 1994, in a move aimed at ensuring growth in reserves and production, Barrick expanded beyond its North American base when it acquired Lac Minerals, Ltd., an international gold mining company with operating mines in Canada, the United States and Chile. The acquisition gave Barrick control of the El Indio Belt and an interest in the Veladero Project in Argentina.

1. Click here for more information regarding the calculation of total cash costs.
2. Click here for more information regarding the calculation of net cash costs. Net cash cost guidance for 2011 is based on an expected realized copper price of $4.00 per pound for the balance of 2011.
3. The target of 9 M oz of annual production within 5 years reflects a current assessment of the expected production and timeline to complete and commission Barrick’s projects currently in construction (Pueblo Viejo and Pascua-Lama) and the Company’s current assessment of existing mine site opportunities, some of which are sensitive to metal price and various capital and input cost assumptions.
4. Click here for more information regarding adjusted net income.
5. Click here for more information regarding adjusted operating cash flow.
6. Click here for more information regarding return on equity.
7. Calculated based on converting previous semi-annual dividend of US$0.20 per share to a quarterly equivalent. The declaration and payment of dividends remains at the discretion of the Board of Directors and will depend on the Company's financial results, cash requirements, future prospects and other factors deemed relevant by the Board.