news-details

Barrick Earns $59 Million In Second Quarter; Organic Growth Pipeline Enhanced; Expects Higher Production and Lower Costs in Second Half

July 25, 2002

Part 2.

Notes to Unaudited Interim Consolidated Financial Statements

(US GAAP)

Tabular dollar amounts in millions of United States dollars, unless otherwise indicated, US GAAP basis. References to C$ and A$ are Canadian and Australian dollars, respectively.

1 BASIS OF PREPARATION

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the rules and regulations of the United States Securities and Exchange Commission for the preparation of interim financial information. Accordingly, they do not include all of the information and disclosures required by United States generally accepted accounting principles ("GAAP") for annual consolidated financial statements. Except as disclosed in note 2, the accounting policies used in the preparation of the accompanying unaudited interim consolidated financial statements are as those described in our audited consolidated financial statements and the notes thereto for the three years ended December 31, 2001.

In the opinion of management, all adjustments considered necessary for fair presentation of results for the periods presented have been reflected in these financial statements. Operating results for the period ended June 30, 2002 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2002. These unaudited interim consolidated financial statements should be read in conjunction with the audited annual financial statements and the notes thereto for the three years ended December 31, 2001.

The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

On December 14, 2001, a wholly owned subsidiary of Barrick merged with Homestake Mining Company ("Homestake"). The merger was accounted for as a pooling-of-interests. The unaudited interim financial statements give retroactive effect to the merger, with all periods presented as if Barrick and Homestake had always been combined. Certain reclassifications have been made to conform the presentation of Barrick and Homestake.

2 ACCOUNTING CHANGES

A Goodwill and Other Intangible Assets

We adopted FASB Statement No. 142, Goodwill and Other Intangible Assets (SFAS 142), effective January 1, 2002. Since we had no goodwill or other intangible assets at the date of adoption, this accounting change had no effect on our consolidated financial statements.

B Accounting for the Impairment or Disposal of Long-lived Assets

We adopted FASB Statement No. 144, Accounting for the Impairment or Disposal of Long-lived Assets (SFAS 144), effective January 1, 2002. The adoption of this new statement had no effect on our consolidated financial statements.

3 CAPITAL STOCK

A Net income per share

Net income per share was calculated on the basis of the weighted average number of common shares outstanding for the period ended June 30, 2002 which amounted to 539 million shares (2001 - 536 million shares).

Diluted net income per share reflects the dilutive effect of the exercise of the common share purchase options outstanding as at the end of the period. The number of shares for the diluted net income per share calculation for 2002 and 2001 was 541 million shares and 536 million shares, respectively.

B Common share purchase options
---------------------------------------------------------------------
                             Common     Weighted    Common   Weighted
                             shares      average    shares    average
                         (millions)   price (C$)(millions) price (US$)
---------------------------------------------------------------------
Outstanding as at December
 31, 2001                        19      $ 28.29         6    $ 16.67
2002 activity:
  Granted                         1        29.96         -          -
  Exercised                     (4)        24.80       (2)      11.98
  Cancelled or expired          (1)        33.53       (1)      13.50
---------------------------------------------------------------------
Outstanding as at June
 30, 2002                        15      $ 28.51         3    $ 21.06
---------------------------------------------------------------------

FASB Statement No. 123 ( SFAS 123) encourages, but does not require, companies to include in compensation cost the fair value of stock options granted to employees.

A Company that does not adopt the fair-value method must disclose the cost of stock compensation awards, at their fair value on the date the award is granted. The fair value of common share purchase options granted in the period ended June 30, 2002 was $2 million, estimated using the Black-Scholes model with the following assumptions: a 6-year expected term, 30% volatility, interest rates of 6% and an expected dividend yield of 1.5%. Under SFAS 123 the cost of stock compensation, and the resulting pro forma net income per share would be as follows:

---------------------------------------------------------------------
                                  Three months ended Six months ended
                                          June 30,         June 30,
                                        2002    2001     2002    2001
---------------------------------------------------------------------
Stock compensation cost              $     5 $     8  $    10 $    15
Pro forma net income                 $    54 $    50  $    95 $   130
Pro forma net income per share
 (dollars)                           $  0.10 $  0.09  $  0.18 $  0.24
---------------------------------------------------------------------

C Dividends

In the three months ended June 30, 2002, the Company declared and paid dividends in United States dollars totaling $0.11 per share.

4 INVENTORIES AND OTHER CURRENT ASSETS

---------------------------------------------------------------------
                                    June 30, 2002  Dec. 31, 2001
---------------------------------------------------------------------
Gold in process and ore in stockpiles      $   93        $   134
Mine operating supplies                        73             72
Derivative instruments (note 5)                26             17
---------------------------------------------------------------------
                                           $  192         $  223
---------------------------------------------------------------------

Gold in process and ore in stockpiles excludes $27 million (December 31, 2001 - $46 million) of stockpiled ore which is not expected to be processed in the following 12 months. This amount is included in other assets.

5 DERIVATIVE INSTRUMENTS

A Derivative instruments

We utilize over-the-counter ("OTC") contracts as the primary basis for entering into derivative transactions. These privately negotiated agreements, compared to exchange traded contracts, allow us to incorporate favourable credit, tenor and flexibility terms into the contracts. The underlyings in the contracts include commodities, interest rates, foreign exchange rates or bond indices with diversified credit exposure. We do not enter into derivative instruments which we would consider to be leveraged. For a full description of our objectives and strategies for using derivative instruments; the nature and principal terms of the derivative instruments we use; the valuation techniques used to estimate the fair value of derivative instruments; and the nature of credit and market risks associated with the derivative instruments we use, refer to our audited consolidated financial statements for the three years ended December 31, 2001.

B Derivative instruments outstanding at June 30, 2002

---------------------------------------------------------------------
Maturity/Scheduled
 for delivery in     2002   2003   2004   2005    2006  2007+   Total
---------------------------------------------------------------------
Normal sales contracts

Spot deferred gold
 sales contracts
 (note 5C)
 Ounces (thousands) 1,400  2,800  2,650  1,600   1,600  7,850  17,900
 Average price
  per ounce         $ 365  $ 340  $ 340  $ 335   $ 340  $ 346   $ 344

Spot deferred
 silver sales
 contracts
 (note 5C)
 Ounces
  (thousands)      10,000 15,000  8,000  3,000   1,000  1,000  38,000
 Average price
  per ounce        $ 4.75 $ 5.05 $ 5.10 $ 5.10  $ 5.10 $ 5.10  $ 4.98

Variable price
 gold sales
 contracts
 (with "caps")
 (note 5C)
 Ounces
  (thousands)           -    500    420    400     170    820   2,310
 Price per ounce at
  cap expiry date       -  $ 342  $ 320  $ 328   $ 349  $ 362   $ 343

Variable price
 gold sales
 contracts
 (with "caps" and
 "floors")
 (note 5C)
 Ounces
  (thousands)         200    150      -      -       -      -     350
 Cap price per
  ounce             $ 297  $ 310      -      -       -      -   $ 303
 Floor price
  per ounce         $ 266  $ 280      -      -       -      -   $ 272
---------------------------------------------------------------------
Written gold call
 options
 Ounces
  (thousands)           -     60    115      -       -    230     405
 Average exercise
  price per ounce       -  $ 310  $ 343      -       -  $ 354   $ 344

Written silver
 call options
 Ounces
  (thousands)      10,000  3,750  5,000  2,000       -      -  20,750
 Average exercise
  price per ounce  $ 5.07 $ 5.27 $ 5.28 $ 5.00       -      -  $ 5.15
---------------------------------------------------------------------
Interest rate and
 lease rate
 contracts

Receive fixed -
 swaps and
 swaptions
 Notional amount
  (millions)            -  $ 275  $ 250  $ 175    $ 60  $ 111   $ 871
 Fixed rate (%)         -   4.9%   3.5%   4.7%    4.4%   4.4%    4.3%
 Pay fixed - swaps
  and swaptions
 Notional amount
  (millions)            -      -      -      -       -  $ 550   $ 550
 Fixed rate (%)         -      -      -      -       -   5.8%    5.8%

Gold lease rate
 swaps
 Receive fixed,
  pay floating
 Notional
  (thousands
  of ounces)          240    451    440    791     800  2,914   5,636
 Fixed rate (%)      1.2%   2.0%   2.1%   2.2%    2.6%   2.7%    2.4%

Total return
 swaps
 Notional amount
  (millions)         $ 45   $ 90  $ 265      -       -      -   $ 400
---------------------------------------------------------------------

Currency contracts

Canadian Dollar
 Forwards
 C$ (millions)       $ 78   $ 66  $ 189      -       -      -   $ 333
 Average Price
  (US cents)         0.64   0.64   0.65      -       -      -    0.64

Canadian Dollar
 Min-Max
 Contracts
 C$ (millions)       $ 57  $ 184   $ 70      -       -      -   $ 311
 Average Cap Price
  (US cents)         0.64   0.65   0.67      -       -      -    0.65
 Average Floor
  Price (US cents)   0.62   0.63   0.64      -       -      -    0.63

Australian Dollar
 Forwards
 A$ (millions)      $ 137  $ 190  $ 181  $ 167    $ 10      -   $ 685
 Average Price
  (US cents)         0.53   0.51   0.51   0.51    0.52      -    0.52

Australian Dollar
 Min-Max
 Contracts
 A$ (millions)       $ 95  $ 260   $ 35   $ 20    $ 10      -   $ 420
 Average Cap
  Price (US cents)   0.54   0.55   0.54   0.52    0.52      -    0.55
 Average Floor
  Price (US cents)   0.52   0.52   0.52   0.51    0.51      -    0.52
---------------------------------------------------------------------

Written call options can only be exercised by the counterparties on the expiry date and can be incorporated, at our discretion, into spot deferred contracts and a delivery date scheduled at any time for up to 15 years. There is no requirement for us to cash settle these transactions.

C Derivative instruments excluded from the scope of SFAS 133

We have two groups of contracts that meet the definition of a derivative under SFAS 133. We have determined and documented that these contracts meet the normal sales exception included in paragraph 10(b) of SFAS 133. Accordingly, our spot deferred sales contracts and Variable Price Sales Contracts are not accounted for as derivatives pursuant to SFAS 133. Our outstanding gold and silver sales commitments under these normal sales contracts at June 30, 2002 had an unrealized mark-to-market loss of $261 million (calculated at spot prices of $314 per ounce and $4.82 per ounce for gold and silver respectively, prevailing market interest rates and volatilities).

Spot deferred contracts

We have entered into spot deferred sales contracts, with various counterparties, that establish selling prices for future gold and silver production, and which therefore act as a hedge against possible price fluctuations in gold and silver.

The average price of the spot deferred contracts reflects the expected future price incorporating an average lease rate assumption of 2.00%. Lease rates are fixed on 100% of the position through 2005. The weighted average lease rate on the total spot deferred position is

  • 1.8%. Variations between the lease rate assumption and the actual lease rates will impact the final realized selling prices.

Variable Price Sales Contracts

During the three months ended March 31, 2002, we exchanged certain written gold call options and min-max gold options at fair value for Variable Price Sales Contracts with identical notional amounts of gold. Variable Price Sales Contracts are contracts whereby we will deliver a specified quantity of gold on a future date that is determined by us. The contracts have a final delivery date of up to 15 years from inception, but we have the right at our sole discretion to set a delivery date for any Variable Price Sales Contract during this 15-year period from inception. All of the Variable Price Sales Contracts have expected delivery dates in 2005 and beyond. The contract price equals the gold spot price subject to a specified maximum ("cap") based on market conditions in the years indicated in the table above, plus a fixed fee. The contract price will be adjusted in the same manner as price adjustments to spot deferred contracts for the period from these dates to the expected delivery date in 2005 and beyond. Certain of these contracts also have a specified minimum ("floor") price.

D Cash flow hedges

We use forward and zero cost min-max currency contracts to hedge exposures arising from operating expenses denominated in currencies other than the United States dollar. The specific terms and notional amounts of the contracts are determined based on management's assessment of forecasted future cash flows relating to these expenses. We have determined and documented that, for those contracts where hedge accounting has been applied, the terms of the contract were negotiated to match the terms of the forecasted transaction, and thus there is no ineffectiveness. At June 30, 2002, we had elected hedge accounting treatment for Canadian dollar contracts with a total notional amount of C$250 million, and Australian dollar contracts with a total notional amount of A$814 million.

In addition, we have elected for certain of our receive fixed interest rate swaps, with a total notional amount of $685 million, to be accounted for as cash flow hedges of expected future interest receipts arising on our cash and short-term investments. We have determined that these interest rate swaps are 100% effective based on forward rates used to measure changes in the forecasted future cash flows as well as changes in the fair value of the derivative instrument.

For the six months ended June 30, 2002, we were not required to record any hedge ineffectiveness in earnings.

For cash flow hedges, gains and losses on derivative contracts that are reclassified from accumulated other comprehensive income to current-period earnings are included in the line item which the hedged item is recorded, in the same period the forecasted transaction affects earnings.

In the three months ended June 30, 2002, we transferred gains of $7 million from other comprehensive income to earnings. In the next twelve months, gains of $12 million accumulated in other comprehensive income are expected to be transferred to earnings.

E Fair value of derivative instruments (excluding normal sales contracts)

---------------------------------------------------------------------
                                                 Three            Six
                                          months ended   months ended
                                              June 30,       June 30,
                                                  2002           2002
---------------------------------------------------------------------
Fair value of derivative instruments at
 beginning of period                           $  (30)        $  (16)
Derivative instruments entered into or
 settled during the period                           5           (10)
Change in fair value of derivative instruments
  during the period:
   Non-hedge derivative gains (losses) (note 5F)    12             11
   Cash flow hedges (note 8)                        38             40
---------------------------------------------------------------------
Fair value of derivative instruments at end
 of period                                     $    25         $   25
---------------------------------------------------------------------

The fair values of recorded derivative related assets and liabilities reflect the netting of the fair values of individual derivative instruments, and amounts due to/from counterparties that arise from derivative instruments, when the conditions of FIN No. 39, Offsetting of Amounts Related to Certain Contracts, have been met. Amounts receivable from counterparties that have been offset against derivative liabilities totalled $39 million at June 30, 2002.

F Non-hedge derivative gains (losses)

---------------------------------------------------------------------
                                Three months ended   Six months ended
                                      June 30,            June 30,
                                 2002       2001      2002       2001
---------------------------------------------------------------------
Commodity contracts            $  (2)    $   (9)   $  (12)      $  24
Currency contracts                 13        (3)        15        (4)
Interest rate and lease rate
 contracts                          1        (7)         8         13
---------------------------------------------------------------------
                                $  12    $  (19)    $   11      $  33
---------------------------------------------------------------------

6 CONTINGENCIES

A Environmental

Our mining and exploration activities are subject to various federal, provincial and state laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. We conduct our operations so as to protect public health and the environment and we believe that our operations are materially in compliance with all applicable laws and regulations. We have made, and expect to make in the future, expenditures to comply with such laws and regulations.

B Litigation and claims

In October 1997, Homestake Canada Inc. ("HCI"), a wholly-owned subsidiary of Barrick, entered into an agreement with Inmet Mining Corporation ("Inmet") to purchase the Troilus mine in Quebec for $110 million plus working capital. In December 1997, HCI terminated the agreement after determining that, on the basis of due diligence studies, conditions to closing the arrangement would not be satisfied. On February 23, 1998, Inmet filed suit against HCI in the British Columbia Supreme Court, disputing the termination of the agreement and alleging that HCI had breached the agreement. On January 15, 2002, the Supreme Court of British Columbia released its decision in the matter and found in favour of Inmet and against HCI. Specifically, the Court held that Inmet should be awarded equitable damages in the amount of C$88.2 million, which amount was accrued at December 31, 2001. The Court did not award Inmet pre-judgement interest. Inmet requested the Court to re-open the trial to permit Inmet to make submissions on its claim for pre-judgement interest from the date of the breach by HCI. The request to re-open was denied by the court on May 17, 2002. On February 7, 2002, HCI filed a Notice of Appeal of the decision with the British Columbia Court of Appeal. Inmet filed a notice of Appeal of the decision denying Inmet the pre-judgment interest. It is anticipated that a letter of credit in the approximate amount of C$95 million will be required to be posted by HCI with the British Columbia Court of Appeal, pending a decision on the appeal.

On April 30, 1998, we were added as a defendant in a class action lawsuit initiated against Bre-X Minerals Ltd., certain of its directors and officers or former directors and officers and others in the United States District Court for the Eastern District of Texas, Texarkana Division. The class action alleges, among other things, that statements made by us in connection with our efforts to secure the right to develop and operate the Busang gold deposit in East Kalimantan, Indonesia were materially false and misleading and omitted to state material facts relating to the preliminary due diligence investigation undertaken by us in late 1996. On July 13, 1999, the Court dismissed the claims against us and several other defendants on the grounds that the plaintiffs had failed to state a claim under United States securities laws. On August 19, 1999, the plaintiffs filed an amended complaint restating their claims against us and certain other defendants and on June 14, 2000 filed a further amended complaint, the Fourth Amended Complaint. On March 31, 2001, the Court granted in part and denied in part our Motion to Dismiss the Fourth Amended Complaint. As a result, we remain a defendant in the case. We believe that the remaining claims against us are without merit. We filed our formal answer to the Fourth Amended Complaint on April 27, 2001 denying all relevant allegations of the plaintiffs against us. Discovery in the case has been stayed by the Court pending the Court's decision on whether or not to certify the case as a class action. The amount of potential loss, if any, which we may incur arising out of the plaintiffs claims is not currently determinable.

From time to time, we are involved in various claims, legal proceedings and complaints arising in the ordinary course of business. We are also subject to reassessment for income and mining taxes for certain years. We do not believe that adverse decisions in any pending or threatened proceedings related to any potential tax assessments or other matters, or any amount which we may be required to pay by reason thereof, will have a material adverse effect on our financial condition or future results of operations.

    7 SEGMENT INFORMATION


---------------------------------------------------------------------
           Three months  Six months           Three months Six months
                  ended       ended                   ended     ended
               June 30,    June 30,                June 30,  June 30,
              2002 2001 2002   2001               2002 2001 2002 2001
---------------------------------------------------------------------

Gold sales                          Income before income
                                     taxes
 Goldstrike   $168 $196 $333   $414  Goldstrike   $ 18 $ 47 $ 40 $113
 Pierina        63   70  133    132  Pierina        14   20   29   34
 Eskay Creek    32   27   60     51  Eskay Creek    18   12   32   23
 Bulyanhulu     37   21   64     21  Bulyanhulu      6    2    7    2
 Kalgoorlie     30   35   59     66  Kalgoorlie      6   10   10   16
 Hemlo          20   23   45     48  Hemlo           2    2    6    8
 Plutonic       27   29   47     48  Plutonic       10   11   16   17
 Round Mountain 34   34   67     64  Round Mountain 10   12   18   18
 Other          79   83  160    173  Other          18  (1)   33    -
---------------------------------------------------------------------
              $490 $518 $968 $1,017               $102 $115 $191 $231
-----------------------------------  --------------------------------

                                     Exploration and
Operating costs                       business
 Goldstrike    110  117  219    236   development (27) (25) (47) (54)
 Pierina        17   10   33     20  Corporate
 Eskay Creek     3    5    6      8   expenses,
 Bulyanhulu     21   13   39     13   net         (25)  (8) (46) (33)
 Kalgoorlie     19   20   39     41  Net-hedge
 Hemlo          16   18   34     35   derivative
 Plutonic       14   14   26     25   gain (loss)   12 (19)   11   33
 Round Mountain 19   17   39     37  Income taxes  (3)  (5)  (4) (32)
 Other          43   70   93    134  --------------------------------
-----------------------------------  Net Income   $ 59 $ 58 $105 $145
              $262 $284 $528 $  549  --------------------------------
-----------------------------------  Capital expenditures
                                      Goldstrike    37   65   77  135
                                      Bulyanhulu    16   35   32  104
                                      Pierina        5    3    9    7
Amortization                          Eskay Creek    1    2    3    3
 Goldstrike     40   32   74     65   Kalgoorlie     1    3    3    4
 Pierina        32   40   71     78   Hemlo          2    -    3    1
 Eskay Creek    11   10   22     20   Plutonic       5    2    8    4
 Bulyanhulu     10    6   18      6   Round Mountain 6    1    6    9
 Kalgoorlie      5    5   10      9   Pascua-Lama    3   18    6   47
 Hemlo           2    3    5      5   Cowal          1    1    2    1
 Plutonic        3    4    5      6   Other         13   10   19   15
 Round Mountain  5    5   10      9  --------------------------------
 Other          18   14   34     39               $ 90 $140 $168 $330
-----------------------------------  --------------------------------
              $126 $119 $249 $  237
-----------------------------------


    8 COMPREHENSIVE INCOME

----------------------------------------------------------------------
                                  Three months ended Six months ended
                                            June 30,         June 30,
                                        2002    2001     2002    2001
---------------------------------------------------------------------
Net income                              $ 59    $ 58    $ 105   $ 145
Foreign currency translation
 adjustments                             (4)      38     (12)       -
Transfers of (gains) losses on
 derivative instruments to earnings
 (note 5D)                               (7)      12     (10)      18
Change in fair value of cash flow
 hedges (note 5D) (net of tax
 effects)                                 21       -       23       -
SFAS 133 transition adjustment             -    (35)        -    (35)
Other                                    (3)       3      (3)       -
---------------------------------------------------------------------
Comprehensive income                    $ 66    $ 76    $ 103   $ 128
---------------------------------------------------------------------


    9 RECONCILIATION OF NET INCOME TO CASH PROVIDED BY OPERATING
ACTIVITIES

---------------------------------------------------------------------
                                  Three months ended Six months ended
                                            June 30,         June 30,
                                        2002    2001    2002     2001
---------------------------------------------------------------------
Net income                              $ 59    $ 58   $ 105    $ 145
Adjustments:
 Amortization                            126     119     249      237
 Amortization of deferred stripping
  costs                                   26      49       62      78
 Deferred income taxes                     9     (9)      (6)       4
 Reclamation and closure costs, net      (7)       -      (4)     (3)
 (Gains) losses on derivative
  instruments                           (19)      31     (21)    (15)
 Recovery (payment) of taxes on
  development costs                       11     (2)        -     (5)
 Other items                            (23)       5     (24)       6
 Changes in operating assets and
  liabilities:
 Accounts receivable                      21     (4)      (5)      19
 Inventories and other current
  assets                                 (3)    (23)       35      11
 Accounts payable and accrued
  liabilities                           (23)    (28)     (63)    (79)
---------------------------------------------------------------------
 Cash provided by operating
  activities                           $ 177   $ 196    $ 328   $ 398
---------------------------------------------------------------------

10 HOMESTAKE CANADA INC. ("HCI")

In connection with a 1998 acquisition, HCI issued 11.1 million HCI exchangeable shares. Each HCI exchangeable share is exchangeable for

  • 0.53 of a Barrick common share at any time at the option of the holder and has essentially the same voting, dividend (payable in Canadian dollars), and other rights as 0.53 of a Barrick common share. A share of special voting stock, which was issued to the transfer agent in trust for the holders of the HCI exchangeable shares, provides the mechanism for holders of the HCI exchangeable shares to receive their voting rights.

As at June 30, 2002, 1.7 million of the HCI exchangeable shares were outstanding and are equivalent to 0.9 million Barrick common shares. As at June 30, 2002, we had reserved 0.9 million Barrick shares for issuance on exchange of the HCI exchangeable shares outstanding.

Summarized consolidated financial information for HCI is as follows:

---------------------------------------------------------------------
                                    June 30, 2002   December 31, 2001
---------------------------------------------------------------------
Current assets                            $    79            $     43
Non-current assets                            312                 345
---------------------------------------------------------------------
Total assets                              $   391            $    388
---------------------------------------------------------------------
Other current liabilities                 $    16            $     76
Notes payable                                 415                 416
Other long-term liabilities                    75                  12
Deferred income taxes                         127                 121
Shareholders' equity                        (242)               (237)
---------------------------------------------------------------------
Total liabilities and shareholders'
 equity                                   $   391             $   388
---------------------------------------------------------------------


---------------------------------------------------------------------
                                  Three months ended Six months ended
                                            June 30,         June 30,
                                        2002    2001   2002      2001
---------------------------------------------------------------------
Total revenues and other income       $   48    $ 55 $  103    $  102
Less: costs and expenses                  53      62    102       121
---------------------------------------------------------------------
Income (loss) before taxes            $  (5)    $(7) $    1    $ (19)
---------------------------------------------------------------------
Net (loss)                            $ (10)    $(5) $  (5)    $ (14)
---------------------------------------------------------------------



Mine Statistics

                                    UNITED STATES
---------------------------------------------------------------------
                Betze-Post    Meikle  Goldstrike Total Round Mountain
Three months
 ended June 30, 2002   2001  2002  2001   2002   2001     2002  2001
--------------------------------------------------------------------
Tons mined
 (thousands)  36,098 39,740   393   358 36,491 40,098    8,096 8,415
Tons processed
 (thousands)   2,499  2,189   385   371  2,884  2,560    8,217 7,515
Average grade
 (ounces
 per ton)      0.156  0.215 0.440 0.547  0.194  0.263    0.020 0.016
Recovery rate
 (percent)     84.3%  85.6% 91.8% 92.0%  86.6%  87.5%      N/A   N/A
--------------------------------------------------------------------
Production
 (thousands of
 ounces)         329    404   155   187    484    591       95    98

Production costs
 per ounce

 Cash operating
  costs         $222   $204  $181  $129   $209   $181     $162  $154
 Royalties and
  Production
  taxes            6     10    11    18      8     12       15    13
--------------------------------------------------------------------
 Total cash
  costs          228    214   192   147    217    193      177   167
 Amortization     64     55   121    40     82     50       52    46
 Reclamation       4      3     2     2      3      3       16    15
--------------------------------------------------------------------
Total production
 costs          $296   $272  $315  $189   $302   $246     $245  $228
--------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)  $27    $40   $10   $25    $37    $65       $6    $-
--------------------------------------------------------------------


Six months ended
 June 30,       2002   2001  2002  2001   2002   2001    2002  2001
--------------------------------------------------------------------
Tons mined
 (thousands)  73,319 81,663   783   660 74,102 82,323  16,230 17,005
Tons processed
 (thousands)   4,920  4,224   767   606  5,687  4,830  16,452 15,935
Average grade
 (ounces
 per ton)      0.163  0.233 0.427 0.619  0.198  0.281   0.019  0.018
Recovery rate
 (percent)     83.7%  86.8% 91.0% 93.0%  85.8%  88.6%     N/A   N/A
--------------------------------------------------------------------
Production
 (thousands of
  ounces)        670    855   298   349    968  1,204     189   198

Production costs
 per ounce

 Cash operating
  costs         $217   $193  $191  $118   $210   $171    $170  $167
 Royalties and
  Production
  taxes            6     10    10    16      7     12      13    10
--------------------------------------------------------------------
 Total cash
  costs          223    203   201   134    217    183     183   177
 Amortization     58     51   114    48     75     50      52    46
 Reclamation       4      3     2     2      3      3      16    16
--------------------------------------------------------------------
Total production
 costs          $285   $257  $317  $184   $295   $236    $251  $239
--------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)  $56    $84   $21   $51    $77   $135      $6    $9
--------------------------------------------------------------------


Mine Statistics

                                     AUSTRALIA
--------------------------------------------------------------------
                    Plutonic     Darlot       Lawlers    Kalgoorlie
Three months
 ended June 30,   2002   2001   2002  2001  2002  2001   2002   2001
--------------------------------------------------------------------
Tons mined
 (thousands)     3,691  3,516    214   175   628   159 11,043 11,764
Tons processed
 (thousands)       821    874    205   197   175   193  1,818  1,704
Average grade
 (ounces per
 ton)            0.105  0.122  0.169 0.164 0.166 0.122  0.058  0.071
Recovery rate
 (percent)       91.1%  90.8%  96.7% 96.3% 97.6% 93.2%  83.3%  85.5%
--------------------------------------------------------------------
Production
 (thousands of
 ounces)            80     94     32    32    29    22     81    109

Production costs
 per ounce

 Cash operating
  costs           $167   $144   $171  $171  $165  $221   $205   $169
 Royalties and
  Production
  taxes              7      7      8     6     7     7      8      7
--------------------------------------------------------------------
 Total cash costs  174    151    179   177   172   228    213    176
 Amortization       38     42     47    43    38    49     56     42
 Reclamation         2      6      1     2     3     2      6      8
--------------------------------------------------------------------
Total production
 costs            $214   $199   $227  $222  $213  $279   $275   $226
--------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)     $5     $2     $1    $7    $1    $1     $1     $3
--------------------------------------------------------------------


Six months ended
 June 30,         2002   2001   2002  2001  2002  2001   2002   2001
--------------------------------------------------------------------
Tons mined
 (thousands)     6,757  6,675    414   371   786   272 22,690 23,057
Tons processed
 (thousands)     1,685  1,729    413   389   357   379  3,564  3,274
Average grade
 (ounces
 per ton)        0.095  0.100  0.174 0.172 0.156 0.131  0.060  0.070
Recovery rate
 (percent)       90.1%  90.4%  97.0% 96.4% 96.9% 94.4%  83.7%  85.5%
--------------------------------------------------------------------
Production
 (thousands of
 ounces)           142    150     68    64    55    47    168    207

Production costs
 per ounce

 Cash operating
  costs           $172   $159   $164  $162  $172  $206   $208   $180
 Royalties and
  production taxes   8      7      7     6     8     7      8      6
--------------------------------------------------------------------
 Total cash costs  180    166    171   168   180   213    216    186
 Amortization       35     40     46    40    37    44     55     43
 Reclamation         2      5      2     2     4     5      6      8
--------------------------------------------------------------------
Total production
 costs            $217   $211   $219  $210  $221  $262   $277   $237
--------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)     $8     $4     $2    $9    $2    $4     $3     $4
--------------------------------------------------------------------


Mine Statistics

                                          CANADA
--------------------------------------------------------------------
                         Hemlo          Eskay Creek   Holt-McDermott
Three months
 ended June 30,      2002     2001     2002     2001    2002    2001
--------------------------------------------------------------------
Tons mined
 (thousands)        1,030      940       63       57     131     116
Tons processed
 (thousands)          487      485       63       57     131     124
Average grade
 (ounces per ton)   0.134    0.162    1.612    1.542   0.172   0.169
Recovery rate
 (percent)          94.1%    92.9%    93.6%    92.8%   94.7%   95.4%
--------------------------------------------------------------------
Production
 (thousands of
 ounces)               62       79       92       82      21      20

Production costs
 per ounce

 Cash operating
  costs              $241     $202      $28      $47    $190    $181
 Royalties and
  production taxes      8        7        4        3       1       4
--------------------------------------------------------------------
 Total cash costs     249      209       32       50     191     185
 Amortization          35       30      128      121      49      87
 Reclamation            5        4        1        1       5       4
--------------------------------------------------------------------
Total production
 costs               $289     $243     $161     $172    $245    $276
--------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)        $2        -       $1       $2      $1      $2
--------------------------------------------------------------------


Six months ended
 June 30,            2002     2001     2002     2001    2002    2001
--------------------------------------------------------------------
Tons mined
 (thousands)        2,017    1,596      125      111     259     236
Tons processed
 (thousands)          958      946      125      112     259     235
Average grade
 (ounces per ton)   0.136    0.164    1.524    1.560   0.176   0.162
Recovery rate
 (percent)          93.8%    92.9%    93.2%    92.9%   94.7%   95.7%
--------------------------------------------------------------------
Production
 (thousands of
 ounces)              123      150      177      159      43      36

Production costs
 per ounce

 Cash operating
  costs              $234     $204      $28      $45    $163    $186
 Royalties and
  production taxes      7        7        4        3       -       3
--------------------------------------------------------------------
 Total cash costs     241      211       32       48     163     189
 Amortization          37       30      127      126      90      86
 Reclamation            4        4        1        1       4       4
--------------------------------------------------------------------
Total production
 costs               $282     $245     $160     $175    $257    $279
--------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)        $3       $1       $3       $3      $3      $4
--------------------------------------------------------------------


Mine Statistics

                               PERU                     TANZANIA
--------------------------------------------------------------------
                                   Pierina                Bulyanhulu
Three months
 ended June 30,          2002         2001          2002        2001
--------------------------------------------------------------------
Tons mined
 (thousands)            8,081        7,992           249         128
Tons processed
 (thousands)            3,418        2,667           273         224
Average grade
 (ounces per ton)       0.076        0.112         0.358       0.355
Recovery rate
 (percent)                  -            -         85.9%       80.1%
--------------------------------------------------------------------
Production
 (thousands of
 ounces)                  183          221            84          64

Production costs
 per ounce

 Cash operating
  costs                   $80          $39          $195        $198
 Royalties and
  production taxes          -            -             8           8
--------------------------------------------------------------------
 Total cash costs          80           39           203         206
 Amortization             180          190            93          91
 Reclamation                9            8             1           1
--------------------------------------------------------------------
Total production
 costs                   $269         $237          $297        $298
--------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)            $5           $3           $16         $35
--------------------------------------------------------------------


Six months ended
 June 30,                2002         2001          2002        2001
--------------------------------------------------------------------
Tons mined
 (thousands)           15,243       14,835           443         128
Tons processed
 (thousands)            6,845        5,039           535         224
Average grade
 (ounces per ton)       0.071        0.100         0.369       0.355
Recovery rate
 (percent)                  -            -         85.6%       80.1%
--------------------------------------------------------------------
Production
 (thousands of
 ounces)                  398          427           169          64

Production costs
 per ounce

 Cash operating
  costs                   $72          $41          $197        $198
 Royalties and
  production taxes          -            -             8           8
--------------------------------------------------------------------
 Total cash costs          72           41           205         206
 Amortization             180          191            93          91
 Reclamation               10            8             1           1
--------------------------------------------------------------------
Total production
 costs                   $262         $240          $299        $298
--------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)            $9           $7           $32        $104
--------------------------------------------------------------------


CORPORATE OFFICE               TRANSFER AGENTS AND REGISTRARS

Barrick Gold Corporation       CIBC Mellon Trust Company
Royal Bank Plaza, South Tower, P.O. Box 7010, Adelaide Street
 Suite 2700                    Postal Station
200 Bay Street, P.O. Box 119   Toronto, Ontario M5C 2W9
Toronto, Ontario, M5J 2J3      Tel: (416) 643-5500
Tel: (416) 861-9911            Toll-free throughout North America:
Fax: (416) 861-0727             1-800-387-0825
Toll-free within Canada and    Fax: (416) 643-5501
 United States: 1-800-720-7415 Email:  inquiries@cibcmellon.ca
                               Web site:  www.cibcmellon.com

Email:  investor@barrick.com
Web site:  www.barrick.com

SHARES LISTED (ABX)            Mellon Investor Services  L.L.C.
The Toronto Stock Exchange     85 Challenger Road, Overpeck Center
The New York Stock Exchange    Ridgefield Park, New Jersey 07660
The London Stock Exchange      Tel:  (201) 329-8660
The Swiss Stock Exchange       Toll-free number within the
La Bourse de Paris              United States: 1-800-589-9836
                               Web site: www.mellon-investor.com

RECENT RESEARCH REPORTS        INVESTOR CONTACTS:    MEDIA CONTACT:
Bear Stearns                   Richard Young         Vincent Borg
BMO Nesbitt Burns              Vice President,       Vice President,
CIBC World Markets             Investor Relations    Corporate
Goldman Sachs                                         Communications
Griffiths McBurney & Partners  Tel:(416) 307-7431 Tel:(416) 307-7477
HSBC                           Email:                Email:
JP Morgan                      ryoung@barrick.com    vborg@barrick.com
Merrill Lynch
Morgan Stanley                 Kathy Sipos
National Bank                  Manager, Investor Relations
Prudential Financial           Tel: (416) 307-7441
Research Capital               Email: ksipos@barrick.com
RBC Capital Markets
Scotia Capital                 Sandra Grabell
TD Newcrest                    Investor Relations Specialist
UBS Warburg                    Tel: (416) 307-7440
                               Email: sgrabell@barrick.com

Certain statements included herein, including those regarding, production, realized gold prices and costs constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Barrick or of the gold mining industry to be materially different from future results, performance or achievements expressed or implied by those forward looking statements. These risks, uncertainties and other factors include, but are not limited to, changes in the worldwide price of gold or certain other commodities and currencies and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in Barrick's most recent Annual Information Form and Management's Discussion and Analysis of Financial and Operating Results" on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

For a description of the key assumptions, parameters and methods used in calculating Barrick's reserves and resources, including the resource at the Alto Chicama property, see Barrick's most recent Annual Information Form referred above.

--30--LS/na*

CONTACT: Barrick Gold Corporation
Vincent Borg, 416/307-7477
416/861-1509 (FAX)
media@barrick.com




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Gold  $ 1,254.94 -1.53 -0.12% Volume: December 13, 2017
ABX NYSE  $ 14.11 +0.47 +3.45% Volume: 15,858,712 December 13, 2017
ABX TSX  $ 18.13 +0.58 +3.31% Volume: 4,224,021 December 13, 2017
Gold  $ 1,254.94 -1.53 -0.12% Volume: December 13, 2017

Our vision is the generation of wealth through responsible mining — wealth for our owners, our people, and the countries and communities with which we partner.

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