TORONTO, ONTARIO -- (MARKET WIRE) -- 10/30/08 -- Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) -
THIRD QUARTER REPORT - OCTOBER 30, 2008
Based on US GAAP and expressed in US dollars
For a full explanation of results, the financial statements and Management's Discussion & Analysis, full year guidance and mine statistics, please see the Company's website, www.barrick.com.
Highlights
- Barrick reported third quarter net income of $254 million ($0.29 per share) and operating cash flow of $542 million ($0.62 per share). Net income before special items of $97 million ($0.11 per share) was $351 million ($0.40 per share)(1) compared to $345 million ($0.40 per share) in the prior year period.
- Third quarter cash margins increased 28% to $406 per ounce from the same period a year ago. The Company continues to sell the gold industry's largest production into historically high market prices, realizing an average price of $872 per ounce.
- Gold production rose to 1.95 million ounces at total cash costs of $466 per ounce(2), and copper production was 87 million pounds at total cash costs of $1.60 per pound(2). As previously indicated, a stronger operating performance is expected in the last quarter of the year.
- The Company expects 2008 gold production to be within its original guidance range at 7.6-7.8 million ounces. Expected total cash costs for the year continue to be in the range of $425-$445 per ounce.
- Barrick's three most advanced projects are expected to produce about 1.9 million ounces(3) of average annual production at lower cash costs than the Company's current cost profile. Construction is 80% complete at the Buzwagi project in Tanzania with first gold expected in mid-2009. The Cortez Hills project in Nevada remains on track with an initial capital budget of about $500 million which is in line with the original estimate. Receipt of the Record of Decision (ROD) is anticipated before year-end and production is anticipated in the first half of 2010. At the Pueblo Viejo project in the Dominican Republic, significant progress has been made on the demolition of historical facilities and site preparation work.
- The Company completed a $1.25 billion bond offering in September. This transaction enhances the liquidity of the gold industry's highest rated balance sheet with a cash balance of over $1.7 billion and an un-drawn credit facility of $1.5 billion at quarter end.
Barrick Gold Corporation reported Q3 production of 1.95 million ounces of gold at a cash margin of $406 per ounce compared to 1.93 million ounces produced at a cash margin of $316 per ounce for the prior year period. The realized gold price increased by $191 per ounce to $872 per ounce, significantly outpacing increases in cash costs.
Barrick reported third quarter net income of $254 million ($0.29 per share) and operating cash flow of $542 million ($0.62 per share). Reported net income included special items of $97 million ($0.11 per share) for impairment charges relating to Barrick's interest in Highland Gold and certain other portfolio investments. Excluding these items, net income was $351 million ($0.40 per share) compared to net income of $345 million ($0.40 per share) in the prior year period. Q3 net income was also impacted by the timing of gold shipments, with gold production exceeding sales by 136,000 ounces for the quarter.
"While gold prices have been volatile in the face of a global credit crisis as investors have liquidated positions across all asset classes, we continue to be positive about the underlying fundamentals of the gold market and the long-term prospects of Barrick," said Peter Munk, Chairman and interim CEO. "The Company is well positioned to succeed in this challenging environment and continues to offer investors a unique opportunity to participate in the gold industry leader with the highest rated balance sheet, the largest production and reserves and a track record of generating strong earnings and cash flow."
PRODUCTION AND COSTS
The Company expects 2008 gold production to be within its original guidance range at 7.6-7.8 million ounces. Expected total cash costs for the year continue to be in the range of $425-$445 per ounce.
As previously indicated with second quarter results, total cash costs per ounce were higher this quarter, with more production coming from the North America and Australia Pacific regions and less production from the lower cost South America region. Higher production and lower cash costs are expected in the fourth quarter, compared to Q3.
The South American business unit produced 0.52 million ounces of gold in Q3 at total cash costs of $265 per ounce. The Lagunas Norte mine continued to deliver outstanding results, producing 0.35 million ounces of gold at total cash costs of only $126 per ounce. With year-to-date production of 0.85 million ounces at cash costs of $126 per ounce, the operation is on track to deliver over 1.0 million ounces in 2008 for the third straight year. Veladero's production of 94,000 ounces at higher cash costs was largely the result of sequencing through lower grade material during the quarter. Year-to-date production of 0.45 million ounces is almost a 50% increase from the prior year period as a result of higher grades, enhanced productivity and better equipment utilization and availability. A crusher expansion to increase throughput from 50,000 to 85,000 tonnes per day is underway and is expected to increase production capacity once completed in the second half of 2009.
The North American business unit increased production to 0.78 million ounces in Q3, largely due to the Goldstrike operation, at total cash costs of $499 per ounce. Goldstrike produced 0.46 million ounces at cash costs of $439 per ounce as a result of transitioning to higher grade ore now that the waste stripping phase is completed. Performance of the North America region is expected to improve further in Q4 with both the Goldstrike and Cortez operations expecting their strongest production quarters of the year.
Australia Pacific production of 0.50 million ounces increased largely as a result of higher production from Porgera, Kanowna, Kalgoorlie and Cowal. These higher production levels are expected to be sustained in Q4 but at lower cash costs than the $608 per ounce recorded in Q3. Improved performances are expected at a number of mines including Cowal where accelerated east wall remediation work remains on track to be completed in Q4, at which time higher grade ore is expected to be released.
Production from the African business unit was 0.14 million ounces in Q3 at total cash costs of $614 per ounce. The Bulyanhulu mine is expected to show improvement moving forward with the progressive ramp-up of underground development and training of the workforce following the illegal strike in late 2007.
Q3 copper production of 87 million pounds is expected to increase in Q4 as Zaldivar's remaining acid requirements for 2008 have been secured. Copper cash costs in Q3 reflect higher electricity and labor costs at Zaldivar, where new contracts came into effect in July. The recent decline in oil prices is expected to provide some relief from escalating energy prices. Barrick expects 2008 cash costs of about $1.25 per pound, which is in line with the original guidance range. The Company now expects 2008 production of 360-370 million pounds due to the effects from acid supply shortages earlier in the year. The Company is fully hedged for the rest of 2008 and for 2009 with an average floor price of just over $3.00 per pound.
PROJECTS UPDATE
Barrick's three most advanced projects are expected to contribute about 1.9 million ounces of average annual production in their first full five years at lower cash costs than the Company's current cost profile. Construction of the Buzwagi project in Tanzania is about 80% complete and within its pre-production capital budget of $400 million. First gold is anticipated on schedule in mid-2009.
In the Dominican Republic, the Pueblo Viejo project is about six months into an expected three and a half year construction period with significant progress being made on the demolition of historical facilities and site preparation work. The project is tracking within its $2.7 billion (100% basis) pre-production capital budget.
The Cortez Hills project in Nevada remains on track with an initial capital budget of about $500 million, which is in line with the original estimate. Approximately 60% of funds have been committed or spent and the receipt of the Record of Decision (ROD) is anticipated before year-end. Production is expected in the first half of 2010.
At Pascua-Lama, the majority of remaining key sectoral permits, including water rights, have been granted by the government of San Juan province in Argentina. Progress was also made on certain fiscal matters at the federal level in Argentina; however, the resolution of cross-border taxation between Chile and Argentina remains outstanding.
EXPLORATION(4)
Based on positive results from the drill program at the North High Grade Bullion zone discovery at Turquoise Ridge, the current 1,500 foot drift will be extended an additional 1,000 feet to further test the extent of the high grade mineralization outlined to date. Results from the current underground program continue to confirm the multi-million ounce potential of the zone.
CORPORATE DEVELOPMENT
Subsequent to quarter end, Barrick completed the sale of non-core royalties to Royal Gold for $150 million in cash and a significant reduction in future royalties payable to Royal Gold on the Crossroads deposit at Barrick's 100% owned Cortez property. The Company expects to record a pre-tax gain of about $165 million on the transaction in Q4.
Barrick acquired Cadence Energy Inc. and the Sturgeon Lake oil assets from Daylight Resources Trust for an expected combined cost of approximately Cdn$487 million. These transactions form part of a long-term strategy to economically hedge about 30% of the Company's current global oil usage at lower rates than currently available in the forward market.
CORPORATE SOCIAL RESPONSIBILITY
Barrick remains committed to a global strategy to help build sustainable, healthy communities. The Company is pleased to have been listed on the Dow Jones Sustainability Index (World) for the first time, ranking the company as a global leader in corporate social responsibility. The Company had previously been listed on the Dow Jones Sustainability Index (North America) and was included in the regional listing again this year.
FINANCIAL POSITION
At September 30, 2008, Barrick maintained the gold industry's only A-rated balance sheet, with a cash balance of $1.7 billion and net debt of $2.5 billion. In September, the Company issued $1.25 billion in long-term debt to repay amounts owing under its $1.5 billion credit facility, which is now fully available. "We are pleased to have completed the largest public financing in our history," said Jamie Sokalsky, Executive Vice President and Chief Financial Officer. "Our ability to raise this level of long-term debt at attractive rates in these difficult credit markets is a testament to our financial strength."
OUTLOOK
The continuation of lower input costs starting to be seen in the market place should help to mitigate the impact on margins in the future, assuming this trend continues. Oil prices have declined from a peak of $147 per barrel to the current levels below $70 per barrel. Energy costs comprise about 25% of the Company's total operating expenditures and recent price declines are expected to provide some relief from the unprecedented industry cost pressures experienced in 2008. There has also been recent moderation in certain other consumable costs such as sulfuric acid and steel grinding media. At the same time, while the gold price has recently experienced weakness, its underlying fundamentals and the long-term prospects for Barrick remain positive and are supported by the industry's highest rated balance sheet.
Barrick's vision is to be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner. Barrick's shares are traded on the Toronto and New York stock exchanges.
(1) Net income excluding special items is a non-GAAP measure. For further information on this measure, see pages 28-29 of the Company's MD&A.
(2) Total cash costs per ounce/pound is defined as cost of sales divided by ounces of gold sold or pounds of copper sold. For further information on this performance measure, refer to pages 31-33 of the Company's MD&A.
(3) Average annual production for the first full five years.
(4) Barrick's exploration programs are designed and conducted under the supervision of Robert Krcmarov, Vice President, Global Exploration of Barrick. For information on the geology, exploration activities generally, and drilling and analysis procedures on Barrick's material properties, see Barrick's most recent Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission.
Key Statistics
Three months ended Nine months ended
Barrick Gold Corporation September 30, September 30,
(in United States dollars) ------------------------------------------------
(Unaudited) 2008 2007 2008 2007
----------------------------------------------------------------------------
Operating Results
Gold production (thousands
of ounces)(1) 1,945 1,931 5,545 5,917
Gold sold (thousands of
ounces)(1) 1,809 1,886 5,404 6,013
Per ounce data
Average spot gold price $ 872 $ 680 $ 897 $ 666
Average realized gold
price(2),(3) 872 681 895 558
Total cash costs(4) 466 365 432 337
Amortization and other(5) 134 126 116 107
Total production costs 600 491 548 444
Copper production (millions
of pounds) 87 99 260 300
Copper sold (millions of
pounds) 85 111 262 308
Per pound data
Average spot copper
price $ 3.49 $ 3.50 $ 3.61 $ 3.22
Average realized copper
price(2),(3) 3.49 3.38 3.56 3.22
Total cash costs(4) 1.60 0.90 1.20 0.82
Amortization and other(5) 0.38 0.29 0.37 0.32
Total production costs 1.98 1.19 1.57 1.14
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Financial Results (millions)
Sales $ 1,878 $ 1,684 $ 5,803 $ 4,415
Net income before special
items(6) 351 345 1,348 1,225
Net income 254 345 1,253 582
Operating cash flow 542 557 1,767 1,056
Per Share Data (dollars)
Net income before special
items (basic)(6) 0.40 0.40 1.55 1.41
Net income (basic) 0.29 0.40 1.44 0.67
Net income (diluted) 0.29 0.39 1.42 0.67
Operating cash flow
(basic) 0.62 0.64 2.03 1.22
Operating cash flow
(diluted) 0.61 0.63 2.00 1.20
Weighted average basic
common shares (millions) 872 867 872 866
Weighted average diluted
common shares (millions)(7) 884 879 885 878
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As at As at
September 30, December 31,
--------------------------
2008 2007
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Financial Position (millions)
Cash and equivalents $ 1,746 $ 2,207
Non-cash working capital 1,122 1,029
Long-term debt 4,382 3,153
Shareholders' equity 16,160 15,256
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(1) Production includes equity gold ounces in Highland Gold. Gold production
also includes an additional 20% share of production from the Porgera
mine and 40% share of production from the Cortez mine, from April 1,
2007 and March 1, 2008 onwards, respectively.
(2) Calculated as consolidated gold sales divided by consolidated ounces
sold or consolidated copper sales divided by consolidated pounds sold.
(3) Realized prices represents gold and copper revenues under US GAAP,
adjusted for unrealized gains and losses on non-hedge derivatives and
unrealized mark to market provisional price adjustments. For further
information on this performance measure, refer to pages 30-31 of the
Company's MD&A.
(4) Represents equity cost of goods sold plus royalties and production
taxes, less by-product revenues, divided by equity ounces of gold sold
or pounds of copper sold. For further information on this performance
measure, refer to pages 31-33 of the Company's MD&A. Excludes
amortization, accretion, unrealized non-hedge gains or losses and
inventory purchase accounting adjustments.
(5) Represents equity amortization expense, unrealized gains on non-hedge
currency and commodity contracts and inventory purchase accounting
adjustments at the Company's producing mines, divided by equity
ounces of gold sold or pounds of copper sold.
(6) In 2008, special items include impairment charges on our investment
in Highland Gold and other investments in junior gold mining companies.
The year-to-date amounts also include amounts previously recorded for
Asset-Backed Commercial Paper. In 2007, amounts include the impact of
deliveries into gold sales contracts and an equity loss in Highland
Gold. For further information on this performance measure, refer to
pages 29-30 of the Company's MD&A.
(7) Fully diluted, includes dilutive effect of stock options and
convertible debt.
Production and Cost Summary
Gold Gold
Production Production
(attributable Total Cash (attributable Total Cash
ounces) Costs ounces) Costs
(000's) ($/oz) (000's) ($/oz)
----------------------------------------------------------------------------
Three months Three months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
---------------------------------- ------------- ------------- -------------
(Unaudited) 2008 2007 2008 2007 2008 2007 2008 2007
---------------------------------- ------------- ------------- -------------
North America(1) 775 787 $ 499 $ 376 2,082 2,399 $ 498 $ 356
South America 522 429 265 213 1,599 1,459 243 185
Australia Pacific 503 558 608 467 1,410 1,559 524 445
Africa 136 146 614 359 430 469 532 356
Other 9 11 410 595 24 31 410 504
---------------------------------- ------------- ------------- -------------
Total 1,945 1,931 $ 466 $ 365 5,545 5,917 $ 432 $ 337
---------------------------------- ------------- ------------- -------------
Copper Copper
Production Production
(attributable Total Cash (attributable Total Cash
pounds) Costs pounds) Costs
(millions) ($/lb) (millions) ($/lb)
----------------------------------------------------------------------------
Three months Three months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
--------------------------------- ------------- ------------- --------------
(Unaudited) 2008 2007 2008 2007 2008 2007 2008 2007
--------------------------------- ------------- ------------- --------------
South America 64 80 $ 1.56 $ 0.69 205 238 $ 1.06 $ 0.67
Australia Pacific 23 19 1.76 1.45 55 62 1.69 1.43
----------------------------------------------------------------------------
Total 87 99 $ 1.60 $ 0.90 260 300 $ 1.20 $ 0.82
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Total Gold Production Costs ($/oz)
----------------------------------------------------------------------------
Three months Nine months
ended ended
September 30, September 30,
------------------------------------------------------------- --------------
(Unaudited) 2008 2007 2008 2007
------------------------------------------------------------- --------------
Direct mining costs at market foreign
exchange rates $ 483 $ 377 $ 452 $ 347
Realized gains on currency and commodity
hedge contracts (39) (25) (37) (21)
By-product credits (9) (10) (15) (12)
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Cash operating costs 435 342 400 314
Royalties 26 20 28 19
Production taxes 5 3 4 4
----------------------------------------------------------------------------
Total cash costs(2) 466 365 432 337
Amortization 112 126 112 106
Unrealized losses on non-hedge currency
and commodity contracts 18 - - 1
Inventory purchase accounting
adjustments and other 4 - 4 -
----------------------------------------------------------------------------
Total production costs $ 600 $ 491 $ 548 $ 444
----------------------------------------------------------------------------
Total Copper Production Costs ($/lb)
----------------------------------------------------------------------------
Three months Nine months
ended ended
September 30, September 30,
------------------------------------------------------------- --------------
(Unaudited) 2008 2007 2008 2007
------------------------------------------------------------- --------------
Cash operating costs $ 1.58 $ 0.88 $ 1.18 $ 0.81
Royalties 0.02 0.02 0.02 0.01
----------------------------------------------------------------------------
Total cash costs(2) 1.60 0.90 1.20 0.82
Amortization 0.38 0.29 0.37 0.32
----------------------------------------------------------------------------
Total production costs $ 1.98 $ 1.19 $ 1.57 $ 1.14
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(1) Barrick's share of Cortez' production and total cash costs increased to
100% effective March 1, 2008.
(2) Total cash costs per ounce/pound excludes amortization, accretion,
unrealized gains on non-hedge currency and commodity contracts and
inventory purchase accounting adjustments. Total cash costs per
ounce/pound is a performance measure that is used throughout this
Third Quarter Report 2008. For more information, see pages 31 to 33 of
the Company's MD&A.
Consolidated Statements of Income
Barrick Gold Corporation Three months Nine months
(in millions of United States dollars, ended ended
except per share data) (Unaudited) September 30, September 30,
----------------------------------------------------------------------------
2008 2007 2008 2007
----------------------------------------------------------------------------
Sales (notes 4 and 5) $ 1,878 $ 1,684 $ 5,803 $ 4,415
Costs and expenses
Cost of sales (notes 4 and 6)(1) 1,028 794 2,685 2,310
Amortization and accretion (notes 4
and 14) 262 324 767 787
Corporate administration 39 38 110 104
Exploration (notes 4 and 9) 55 48 152 118
Project development expense (note 9) 41 49 171 151
Other expense (note 7A) 74 50 163 128
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1,499 1,303 4,048 3,598
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Interest income 12 33 34 107
Interest expense (note 15B) (7) (28) (21) (91)
Other income (note 7C) 39 24 111 94
Impairment charges (note 7B) (112) (3) (153) (6)
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(68) 26 (29) 104
----------------------------------------------------------------------------
Income before income taxes and other
items 311 407 1,726 921
Income tax expense (note 8) (25) (58) (426) (326)
Non-controlling interests (note 7D) (10) 2 (18) 10
Loss from equity investees (note 12) (22) (6) (29) (32)
----------------------------------------------------------------------------
254 345 1,253 573
Income from discontinued operations - - - 9
Net income for the period $ 254 $ 345 $ 1,253 $ 582
----------------------------------------------------------------------------
Earnings per share data (note 10):
Net income
Basic $ 0.29 $ 0.40 $ 1.44 $ 0.67
Diluted $ 0.29 $ 0.39 $ 1.42 $ 0.67
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(1) Exclusive of amortization (note 4).
The notes to these unaudited interim consolidated financial statements,
which are contained in the Third Quarter Report 2008 available on our
website, are an integral part of these unaudited interim consolidated
financial statements.
Consolidated Statements of Cash Flow
Barrick Gold Corporation Three months Nine months
(in millions of United States ended ended
dollars) (Unaudited) September 30, September 30,
----------------------------------------------------------------------------
2008 2007 2008 2007
----------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income for the period $ 254 $ 345 $ 1,253 $ 582
Amortization and accretion (notes 4 and 14) 262 324 767 787
Impairment charges (note 7B) 112 3 153 6
Increase in inventory (note 13) (167) (92) (406) (174)
Other items (note 11) 81 (23) - (145)
----------------------------------------------------------------------------
Net cash provided by operating activities 542 557 1,767 1,056
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INVESTING ACTIVITIES
Property, plant and equipment
Capital expenditures (note 4) (571) (249) (1,162) (727)
Sales proceeds 14 33 19 43
Acquisitions (note 3) (396) (259) (2,122) (259)
Investments
Purchases - - (16) (4)
Sales proceeds 19 38 76 549
Reclassification of asset-backed
commercial paper - (65) - (65)
Long-term supply contract (note 12) - - (35) -
Other investing activities (45) (12) (117) (70)
----------------------------------------------------------------------------
Net cash used in investing activities (979) (514) (3,357) (533)
----------------------------------------------------------------------------
FINANCING ACTIVITIES
Capital stock
Proceeds on exercise of stock options 1 81 71 122
Debt
Proceeds 1,401 - 2,391 -
Repayments (1,197) (19) (1,247) (677)
Dividends - - (174) (130)
Settlement of derivative instruments
acquired in Placer Dome acquisition - - - (197)
Funding from non-controlling interests 59 - 93 -
----------------------------------------------------------------------------
Net cash provided by (used in)
financing activities 264 62 1,134 (882)
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Operating cash flows of discontinued
operations - 21 - 21
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Effect of exchange rate changes on
cash and equivalents (15) 8 (5) 13
----------------------------------------------------------------------------
Net increase (decrease) in cash and
equivalents (188) 134 (461) (325)
Cash and equivalents at beginning of
period 1,934 2,584 2,207 3,043
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Cash and equivalents at end of period $ 1,746 $ 2,718 $ 1,746 $ 2,718
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The notes to these unaudited interim consolidated financial statements,
which are contained in the Third Quarter Report 2008 available on our
website, are an integral part of these unaudited interim consolidated
financial statements.
Consolidated Balance Sheets
Barrick Gold Corporation As at As at
(in millions of United States dollars) September 30, December 31,
(Unaudited) 2008 2007
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ASSETS
Current assets
Cash and equivalents $ 1,746 $ 2,207
Accounts receivable 238 256
Inventories (note 13) 1,409 1,129
Other current assets 672 707
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4,065 4,299
Non-current assets
Investments (note 12) 66 142
Equity method investments (note 12) 1,057 1,074
Property, plant and equipment (note 14) 11,230 8,596
Goodwill 5,955 5,847
Intangible assets 76 68
Other assets 1,911 1,925
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Total assets $ 24,360 $ 21,951
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 989 $ 808
Short-term debt 200 233
Other current liabilities 208 255
----------------------------------------------------------------------------
1,397 1,296
Non-current liabilities
Long-term debt (note 15) 4,382 3,153
Asset retirement obligations 975 892
Deferred income tax liabilities 726 841
Other liabilities 527 431
----------------------------------------------------------------------------
Total liabilities 8,007 6,613
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Non-controlling interests 193 82
----------------------------------------------------------------------------
Shareholders' equity
Capital stock (note 17) 13,356 13,273
Retained earnings 2,904 1,832
Accumulated other comprehensive income (loss)
(note 18) (100) 151
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Total shareholders' equity 16,160 15,256
----------------------------------------------------------------------------
Contingencies and commitments (notes 14 and 20)
----------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 24,360 $ 21,951
----------------------------------------------------------------------------
The notes to these unaudited interim consolidated financial statements,
which are contained in the Third Quarter Report 2008 available on our
website, are an integral part of these unaudited interim consolidated
financial statements.
Consolidated Statements of Shareholders' Equity
Barrick Gold Corporation
For the nine months ended September 30
(in millions of United States dollars)(Unaudited)
----------------------------------------------------------------------------
2008 2007
----------------------------------------------------------------------------
Common shares (number in millions)
At January 1 870 864
Issued on exercise of stock options 2 4
----------------------------------------------------------------------------
At September 30 872 868
----------------------------------------------------------------------------
Common shares (dollars in millions)
At January 1 $ 13,273 $ 13,106
Issued on exercise of stock options 71 122
Recognition of stock option expense 12 16
----------------------------------------------------------------------------
At September 30 $ 13,356 $ 13,244
----------------------------------------------------------------------------
Retained earnings
At January 1 $ 1,832 $ 974
Net income 1,253 582
Dividends (174) (130)
Repurchase of preferred shares of a
subsidiary (note 17) (7) -
----------------------------------------------------------------------------
At September 30 $ 2,904 $ 1,426
----------------------------------------------------------------------------
Accumulated other comprehensive income (loss)
(note 18) $ (100) $ 121
----------------------------------------------------------------------------
Total shareholders' equity at September 30 $ 16,160 $ 14,791
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Consolidated Statements of Comprehensive Income
Barrick Gold Corporation Three months Nine months
(in millions of United States dollars) ended ended
(Unaudited) September 30, September 30,
----------------------------------------------------------------------------
2008 2007 2008 2007
----------------------------------------------------------------------------
Net income $ 254 $ 345 $ 1,253 $ 582
Other comprehensive income (loss),
net of tax (note 18) (345) 28 (251) 2
----------------------------------------------------------------------------
Comprehensive income (loss) $ (91) $ 373 $ 1,002 $ 584
----------------------------------------------------------------------------
The notes to these unaudited interim consolidated financial statements,
which are contained in the Third Quarter Report 2008 available on our
website, are an integral part of these unaudited interim consolidated
financial statements.
CORPORATE OFFICE TRANSFER AGENTS AND REGISTRARS
Barrick Gold Corporation CIBC Mellon Trust Company
Brookfield Place, TD Canada Trust P.O. Box 7010,
Tower, Suite 3700 Adelaide Street Postal Station
161 Bay Street, P.O. Box 212 Toronto, Ontario M5C 2W9
Toronto, Canada M5J 2S1 Tel: (416) 643-5500
Tel: (416) 861-9911 Toll-free throughout
Fax: (416) 861-0727 North America: 1-800-387-0825
Toll-free within Canada and Fax: (416) 643-5501
United States: 1-800-720-7415 Email: inquiries@cibcmellon.com
Email: investor@barrick.com Website: www.cibcmellon.com
Website: www.barrick.com
SHARES LISTED BNY MELLON SHAREOWNER SERVICES
ABX - The Toronto Stock Exchange 480 Washington Blvd. - 27th Floor
The New York Stock Exchange Jersey City, NJ 07310
Tel: 1-800-589-9836
Fax: (201) 680-4665
Email: shrrelations@mellon.com
Website: www.melloninvestor.com
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained in this Third Quarter Report 2008, including any information as to our strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "will", "anticipate", "contemplate", "target", "plan", "continue', "budget", "may", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; changes in the worldwide price of gold, copper or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets; changes in U.S. dollar interest rates or gold lease rates; risks arising from holding derivative instruments; ability to successfully complete announced transactions and integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and increasing costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; adverse changes in our credit rating, level of indebtedness and liquidity, contests over title to properties, particularly title to undeveloped properties; the risks involved in the exploration, development and mining business. Certain of these factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.
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. Contacts:
INVESTOR CONTACT: Deni Nicoski
Vice President, Investor Relations
(416) 307-7410
Email: dnicoski@barrick.com
MEDIA CONTACT: Vincent Borg
Senior Vice President, Corporate Communications
(416) 307-7477
Email: vborg@barrick.com
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