news-details

Barrick Earns $34 Million or $0.06 Per Share in Third Quarter; Company Affirms '02 Production & Cost Estimates

October 24, 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 to Canadian and Australian dollars, respectively.

1 BASIS OF PREPARATION

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("US GAAP") for the preparation of interim financial information. Accordingly, they do not include all of the information and disclosures required by US 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 the same 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 September 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 consolidated 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, the implementation of 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 three and nine month periods ended September 30, 2002 which amounted to 540 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 the three month and nine month periods ended September 30, 2002 and 2001 were 541 million shares and 537 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        29.81            -             -
 Exercised                (4)        24.79          (2)         11.97
 Cancelled or expired     (1)        34.15          (1)         15.25
---------------------------------------------------------------------
Outstanding as at
 September 30, 2002        15      $ 28.50            3       $ 20.84
---------------------------------------------------------------------

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 nine month period ended September 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 and net income per share would be as follows:

---------------------------------------------------------------------
                               Three months ended   Nine months ended
                                  September 30,        September 30,
                                 2002      2001       2002       2001
---------------------------------------------------------------------
Stock compensation cost           $ 5       $ 8      $  15     $   23
Pro forma net income             $ 29      $ 51     $  124     $  181
Pro forma net income per
 share (dollars)              $  0.05   $  0.10    $  0.23    $  0.34
---------------------------------------------------------------------

C Dividends

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

    4  INVENTORIES AND OTHER CURRENT ASSETS

---------------------------------------------------------------------
                                       Sept. 30, 2002   Dec. 31, 2001
---------------------------------------------------------------------
Gold in process and ore in stockpiles          $   88         $   134
Mine operating supplies                            74              72
Derivative instruments (note 5)                    10              17
---------------------------------------------------------------------
                                               $  172          $  223
---------------------------------------------------------------------

Gold in process and ore in stockpiles excludes $60 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 flexible terms into the contracts. The underlyings in the contracts include commodities, interest rates, foreign currency exchange rates and 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  Gold and silver contracts outstanding at September 30, 2002

---------------------------------------------------------------------
Maturity/Scheduled for
 delivery in         2002     2003    2004   2005  2006 2007+   Total
---------------------------------------------------------------------
Gold contracts
Spot deferred
 contracts (1)
 Ounces (thousands)   750    2,800   1,650  1,550 1,550 8,600  16,900
 Average price per
  ounce             $ 365    $ 340   $ 345  $ 335 $ 338 $ 342   $ 342
Variable price gold
 sales and option
 contracts
With "caps"(2)
 Ounces (thousands)     -      475     300    300     -   900   1,975
 Average price per
 ounce at cap
 expiry date            -    $ 343   $ 310  $ 317     - $ 369   $ 346
With "caps" and "floors"
 Ounces (thousands)   100      150       -      -     -     -     250
 Cap price per ounce $297    $ 310       -      -     -     -   $ 305
 Floor price per
 ounce              $ 270    $ 280       -      -     -     -   $ 276
---------------------------------------------------------------------
Total gold ounces
 (thousands)          850    3,425   1,950  1,850 1,550 9,500  19,125
Average price per
 ounce              $ 357    $ 339   $ 340  $ 332 $ 338 $ 345   $ 342
---------------------------------------------------------------------

Silver contracts
Spot deferred
 contracts
 Ounces (thousands) 5,000   10,750   9,750  9,500 2,400     -  37,400
 Average price per
  ounce            $ 4.75   $ 5.00  $ 5.10 $ 5.20 $5.25     -  $ 5.06
Written silver call
 options
 Ounces (thousands) 2,000    3,750   5,000  2,000     -     -  12,750
 Average exercise
  price per ounce  $ 5.25   $ 5.27  $ 5.28 $ 5.00     -     -  $ 5.23
---------------------------------------------------------------------
Total silver ounces
 (thousands)        7,000   14,500  14,750 11,500 2,400     -  50,150
Average price per
 ounce             $ 4.89   $ 5.07  $ 5.16 $ 5.17 $5.25     -  $ 5.10
---------------------------------------------------------------------
1. Net of 300,000 ounces of gold contracts purchased
2. Net of 150,000 ounces of gold calls purchased

In addition to the above, we have off-take contracts which allow (but do not commit) Barrick to sell 1.8 million ounces of gold spread over 10 years, at the then prevailing spot price.

The Company has previously announced that it anticipates a reduction in its forward gold sales position to approximately 12 million ounces by the end of 2003, based on current market conditions. This reduction is planned primarily through scheduled deliveries from production, but also through opportunistic early delivery of production into certain contracts.

(i) Normal sales contracts

We have determined and documented that our physically settled Spot Deferred Sales Contracts and Variable Price Sales Contracts meet the normal sales exception included in paragraph 10(b) of SFAS 133. Accordingly, these contracts are not accounted for as derivatives pursuant to SFAS 133, and are not marked-to-market through earnings.

Spot deferred sales contracts

We have entered into spot deferred sales contracts, with various counterparties, that establish selling prices for future gold production, and which therefore act as an economic hedge against possible price fluctuations in gold. 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 Spot Deferred Sales Contracts during this 15-year period from inception. At the time a delivery date is rescheduled, the contract price is adjusted based on the difference between the prevailing forward gold market price and the original contract price.

The average price of the spot deferred sales contracts reflects established and expected future price assumptions. Prices are fixed on 100% of the contracts through 2005. Beyond 2005, the expected prices incorporate an average lease rate assumption of 1.75%. Variations between the lease rate assumption and the actual lease rates will impact the final realized selling prices. Lease rate exposure is managed and accounted for separately from our normal gold sales contracts, and the economic impact flows through our earnings each quarter as part of "non-hedge derivative gains (losses)"(refer to note 5D). The outstanding lease rate swaps at September 30, 2002, that we utilize to manage our lease rate exposure were as follows:

---------------------------------------------------------------------
Maturity                   2002  2003  2004  2005  2006  2007+  Total
---------------------------------------------------------------------
Gold lease rate swaps
 Receive fixed, pay floating
 Notional (thousands
  of ounces)                  -   150   400   595 1,016  3,155  5,316
 Fixed rate (%)               -  2.5%  2.5%  2.5%  2.6%   4.1%   3.5%

Variable Price Sales Contracts

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 premium payable to Barrick. 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.

C  Other derivative instruments outstanding as at September 30, 2002

---------------------------------------------------------------------
Maturity         2002     2003    2004    2005   2006  2007+    Total
---------------------------------------------------------------------

Interest rate
 contracts
Receive fixed -
 swaps and
 swaptions
Notional amount
 (millions)         -    $ 375   $ 250   $ 150  $ 172  $ 225  $ 1,172
Fixed rate (%)      -     4.5%    3.5%    5.2%   5.4%   5.1%     4.6%
Pay fixed -
 swaps and
 swaptions
Notional amount
 (millions)      $ 25    $ 100       -    $ 50      -  $ 600    $ 775
Fixed rate (%)   5.2%     3.4%       -    7.4%      -   5.6%     5.4%
---------------------------------------------------------------------
Net notional
 position      $ (25)    $ 275   $ 250   $ 100  $ 172 $(375)    $ 397

Total return swaps
 Notional amount
  (millions)     $ 27        -       -       -      -      -     $ 27
---------------------------------------------------------------------

Currency contracts
Canadian Dollar
 Forwards
 C$ (millions)   $ 31    $ 132   $ 102   $  91      -      -    $ 356
 Average Price
  (US cents)     0.64     0.63    0.64    0.63      -      -     0.63
Canadian Dollar
 Min-Max
 Contracts
 C$ (millions)   $ 57    $ 118    $ 77       -      -      -    $ 252
 Average Cap
  Price (US
  cents)         0.65     0.65    0.65       -      -      -     0.65
Average
 Floor Price
 (US cents)      0.62     0.63    0.63       -      -      -     0.63
Australian Dollar
 Forwards
 A$ (millions)   $ 20    $ 190   $ 311   $ 283   $ 10      -    $ 814
 Average
  Price (US
  cents)         0.55     0.52    0.51    0.51   0.52      -     0.52
Australian Dollar
 Min-Max Contracts
 A$ (millions)   $ 97    $ 224    $ 10    $ 10   $ 10      -    $ 351
 Average Cap
  Price (US
  cents)         0.54     0.55    0.52    0.52   0.52      -     0.54
 Average Floor
  Price (US
  cents)         0.53     0.52    0.51    0.51   0.51      -     0.52
---------------------------------------------------------------------

(i) Cash flow hedges

We use forward and zero cost min-max currency contracts to economically hedge exposures arising from operating expenses and capital expenditures 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 expenditures. We have determined and documented that certain of these contracts be accounted for as cash flow hedges of the variability of forecasted expenditures in US$ terms and that these hedging relationships continue to be highly effective. For the three and nine month periods ended September 30, 2002, the amount of hedge ineffectiveness recorded and recognized was insignificant. At September 30, 2002, we had elected hedge accounting treatment for Canadian dollar contracts with a total notional amount of C$515 million, and Australian dollar contracts with a total notional amount of A$1,082 million.

In addition, we have elected for certain of our receive fixed interest rate swaps, with a total notional amount of $525 million, to be accounted for as cash flow hedges of expected future interest receipts arising on our cash and short-term investments. For the three and nine month periods ended September 30, 2002, the amount of hedge ineffectiveness recorded and recognized was insignificant.

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 and nine month periods ended September 30, 2002, we transferred gains of $3 million and $13 million respectively 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.

(ii) Unrealized fair value of derivative instruments other than normal sales contracts

---------------------------------------------------------------------
                            Three months ended      Nine months ended
                                 September 30,          September 30,
                                          2002                   2002
---------------------------------------------------------------------
Fair value of derivative instruments
 at beginning of period                  $  25                $  (16)
Derivative instruments entered
 into or settled during the period           8                    (2)
Change in fair value of derivative
 instruments during the period:
  Non-hedge derivative gains (losses)
   (note 5D)                               (3)                      8
  Cash flow hedges (note 8)               (22)                     18
---------------------------------------------------------------------
Fair value of derivative instruments
 at end of period                       $    8                  $   8
---------------------------------------------------------------------

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 totaled $20 million at September 30, 2002.

    D  Non-hedge derivative gains (losses)


---------------------------------------------------------------------
                               Three months ended   Nine months ended
                                    September 30,       September 30,
                                   2002      2001      2002      2001
---------------------------------------------------------------------
Commodity contracts               $  13   $   (9)    $    1    $   15
Currency contracts                 (11)      (17)         4      (21)
Interest and lease rate contracts   (5)        23         3        36
---------------------------------------------------------------------
                                  $ (3)   $   (3)    $    8    $   30
---------------------------------------------------------------------

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. A letter of credit in the approximate amount of C$95 million was posted on August 20, 2002 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  Nine months         Three months  Nine months
                ended        ended                ended        ended
        September 30, September 30,       September 30, September 30,
            2002  2001  2002  2001              2002 2001 2002  2001
---------------------------------- ---------------------------------
Gold sales                         Income before income
                                    taxes
 Goldstrike $162 $ 159 $ 495 $ 573   Goldstrike   12   23   52   129
 Pierina      74    81   207   213   Pierina      15   21   44    55
 Eskay Creek  30    26    90    77   Eskay Creek  14   11   46    34
 Bulyanhulu   28    27    92    48   Bulyanhulu    -    2    7     4
 Kalgoorlie   32    28    91    94   Kalgoorlie    6    7   16    23
 Hemlo        22    23    67    71   Hemlo         6   11   12    19
 Plutonic     30    24    77    72   Plutonic     11    8   27    25
 Round                               Round
  Mountain    36    30   103    94    Mountain     9    6   27    24
 Other        59    68   219   241   Other        15    4   48    11
---------------------------------- ---------------------------------
             473   466 1,441 1,483                88   93  279   324
---------------------------------- ---------------------------------
Operating
  costs                            Exploration and
 Goldstrike  112   112   331   355  business
 Pierina      19    13    52    33  development (30) (22) (77)  (76)
 Eskay Creek   4     5    10    13 Corporate
 Bulyanhulu   19    17    58    30  expenses,
 Kalgoorlie   22    17    61    58  net         (19) (17) (65)  (50)
 Hemlo        14    12    48    47 Non-hedge
 Plutonic     16    13    42    38  derivative
 Round                              gain (loss)  (3)  (3)    8    30
  Mountain    21    20    60    57 Income taxes  (2)    8  (6)  (24)
 Other        32    44   125   171 ---------------------------------
---------------------------------- Net Income  $  34 $ 59 $139 $ 204
             259   253   787   802 ---------------------------------
---------------------------------- Capital
Amortization                        expenditures
 Goldstrike   38    24   112    89  Goldstrike $  36 $ 61 $113 $ 196
 Pierina      40    47   111   125  Bulyanhulu    12   21   44   125
 Eskay Creek  12    10    34    30  Pierina        7    9   16    16
 Bulyanhulu    9     8    27    14  Eskay Creek    5    5    8     8
 Kalgoorlie    4     4    14    13  Kalgoorlie     4    2    7     6
 Hemlo         2     -     7     5  Hemlo          2    3    5     4
 Plutonic      3     3     8     9  Plutonic       6    3   14     7
 Round                              Round
  Mountain     6     4    16    13   Mountain      1    3    7    12
 Other        12    20    46    59  Pascua-Lama    3   10    9    57
----------------------------------  Cowal          5   12    7    13
             126   120   375   357  Other          7   26   26    41
---------------------------------- ---------------------------------
                                               $  88 $155 $256 $ 485
                                   ---------------------------------

8   COMPREHENSIVE INCOME
---------------------------------------------------------------------
                               Three months ended   Nine months ended
                                     September 30,      September 30,
                                    2002      2001      2002     2001
---------------------------------------------------------------------
Net income                          $ 34      $ 59     $ 139    $ 204
Foreign currency
 translation adjustments            (11)         -      (23)        -
Transfers of (gains) losses on
 derivative instruments to
 earnings (note 5C)                  (3)         6      (13)       24
Change in fair value of cash
 flow hedges (note 5C) (net
 of tax effects)                    (12)         -        11        -
SFAS 133 transition adjustment         -         -         -     (35)
Other                                (1)         -       (4)        -
---------------------------------------------------------------------
Comprehensive income                 $ 7      $ 65     $ 110    $ 193
---------------------------------------------------------------------

9   RECONCILIATION OF NET INCOME TO CASH PROVIDED BY OPERATING
    ACTIVITIES

---------------------------------------------------------------------
                               Three months ended   Nine months ended
                                     September 30,      September 30,
                                    2002      2001      2002     2001
---------------------------------------------------------------------
Net income                          $ 34      $ 59     $ 139    $ 204
Adjustments:
 Amortization                        126       120       375      357
 Amortization of deferred
  stripping costs                     39        19       101       97
 Deferred income taxes               (3)       (5)       (9)      (1)
 Reclamation and closure
  costs, net                        (13)         3      (17)        -
 Payment of taxes on
  development costs                    -         -         -      (5)
 Other items                           3        16      (42)       22
 Changes in operating assets
  and liabilities:
 Accounts receivable                   -        58       (5)       77
 Inventories and other
  current assets                     (1)      (27)        34     (31)
 Accounts payable and
  accrued liabilities               (29)      (62)      (92)    (141)
---------------------------------------------------------------------
 Cash provided by operating
 activities                        $ 156     $ 181     $ 484    $ 579
---------------------------------------------------------------------

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 September 30, 2002, 1.6 million of the HCI exchangeable shares were outstanding and are equivalent to 0.8 million Barrick common shares. As at September 30, 2002, we had reserved 0.8 million Barrick shares for issuance on exchange of the HCI exchangeable shares outstanding.

Summarized consolidated financial information for HCI is as follows:

---------------------------------------------------------------------
                                          September 30,  December 31,
                                                   2002          2001
---------------------------------------------------------------------
Current assets                                     $ 70          $ 43
Non-current assets                                  272           345
---------------------------------------------------------------------
Total assets                                      $ 342         $ 388
---------------------------------------------------------------------
Other current liabilities                          $ 74          $ 76
Notes payable                                       416           416
Other long-term liabilities                          18            12
Deferred income taxes                               122           121
Shareholders' equity                              (288)         (237)
---------------------------------------------------------------------
Total liabilities and shareholders' equity        $ 342         $ 388
---------------------------------------------------------------------


---------------------------------------------------------------------
                               Three months ended   Nine months ended
                                     September 30,      September 30,
                                    2002      2001      2002     2001
---------------------------------------------------------------------
Total revenues and other income     $ 38      $ 55     $ 141    $ 102
Less: costs and expenses              36        62       138      121
---------------------------------------------------------------------
Income (loss) before taxes           $ 2     $ (7)       $ 3   $ (19)
---------------------------------------------------------------------
Net (loss)                         $ (2)     $ (5)     $ (7)   $ (14)
---------------------------------------------------------------------


Mine Statistics
                                 UNITED STATES
---------------------------------------------------------------------
Three months    Betze-Post       Meikle     Goldstrike          Round
 ended                                           Total       Mountain
 September
 30,          2002    2001   2002  2001   2002    2001    2002   2001
---------------------------------------------------------------------
Tons mined
 (thous-
 ands)      35,456  35,809    411   363 35,867  36,172   7,984  9,229
Tons processed
 (thousands) 2,704   2,359    423   415  3,127   2,774   7,425  5,892
Average grade
 (ounces per
  ton)       0.151   0.169  0.389 0.533  0.189   0.223   0.019  0.016
Recovery rate
 (percent)   82.0%   82.5%  91.1% 93.4%  84.9%   86.4%     N/A    N/A
---------------------------------------------------------------------
Production
 (thousands of
 ounces)       334     329    150   207    484     536     100    103

Production costs
 per ounce
  Cash operating
   costs     $ 239   $ 228  $ 190 $ 124  $ 223   $ 189   $ 160  $ 166
  Royalties and
   production
   taxes         8       8     16    16     10      11      14     14
---------------------------------------------------------------------
  Total cash
   costs       247     236    206   140    233     200     174    180
  Amortization  58      53    123    47     79      51      56     43
  Reclamation    4       3      2     2      3       3      16     15
---------------------------------------------------------------------
Total production
 costs       $ 309   $ 292  $ 331 $ 189  $ 315   $ 254   $ 246  $ 238
---------------------------------------------------------------------
Capital expenditures
 (US$
 millions)    $ 28    $ 40    $ 8  $ 21   $ 36    $ 61     $ 1    $ 3
---------------------------------------------------------------------


Nine months ended
 September
 30,        2002     2001    2002  2001    2002    2001   2002   2001
---------------------------------------------------------------------
Tons mined
 (thous-
 ands)   108,775  117,472   1,194 1,023 109,969 118,495 24,214 26,234
Tons processed
 (thous-
 ands)     7,624    6,583   1,190 1,021   8,814   7,604 23,877 21,827
Average grade
 (ounces per
 ton)      0.158    0.210   0.413 0.584   0.198   0.260  0.019  0.017
Recovery rate
 (percent) 83.1%    85.5%   91.0% 93.2%   85.7%   87.9%    N/A    N/A
---------------------------------------------------------------------
Production
 (thousands of
 ounces)   1,004    1,184     448   556   1,452   1,740    289    301

Production costs
 per ounce
 Cash operating
  costs    $ 224    $ 212   $ 191 $ 126   $ 214   $ 184  $ 167  $ 167
 Royalties and
  production
  taxes        6        9      13    16       8      11     13     11
---------------------------------------------------------------------
 Total cash
  costs      230      221     204   142     222     195    180    178
 Amortization 58       51     117    47      76      50     53     45
 Reclamation   4        3       2     2       3       3     16     16
---------------------------------------------------------------------
Total production
 costs     $ 292    $ 275   $ 323 $ 191   $ 301   $ 248  $ 249  $ 239
---------------------------------------------------------------------
Capital
 expenditures
 (US$
 millions)  $ 84    $ 124    $ 29  $ 72   $ 113   $ 196    $ 7   $ 12
---------------------------------------------------------------------


Mine Statistics
                                       AUSTRALIA
---------------------------------------------------------------------
Three months
 ended            Plutonic        Darlot       Lawlers     Kalgoorlie
 September 30, 2002   2001   2002   2001   2002   2001    2002   2001
---------------------------------------------------------------------
Tons mined
 (thousands)  4,047  2,759    215    217  1,999    198  11,491 11,722
Tons
 processed
 (thousands)    909    879    216    207    177    200   1,702  1,618
Average
 grade
 (ounces per
 ton)         0.098  0.093  0.175  0.156  0.176  0.129   0.059  0.061
Recovery
 rate
 (percent)    89.8%  91.7%  97.2%  96.7%  97.6%  95.7%   82.1%  82.4%
---------------------------------------------------------------------
Production
 (thousands
 of ounces)      81     76     38     31     30     25      94     84

Production costs
 per ounce
  Cash
   operating
   costs       $179   $146   $156   $158   $161   $185    $221   $193
  Royalties
   and
   production
   taxes          8      8      8      6      7      6       7      6
---------------------------------------------------------------------
  Total cash
   costs        187    154    164    164    168    191     228    199

  Amortization   31     45     42     45     34     49      47     46
  Reclamation     2      4      2      2      5      5       5      4
---------------------------------------------------------------------
Total
 production
 costs         $220   $203   $208   $211   $207   $245    $280   $249
---------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)  $6     $3     $3     $1     $2     $-      $4     $2
---------------------------------------------------------------------


Nine months
 ended
 September 30, 2002   2001   2002   2001   2002   2001    2002   2001
---------------------------------------------------------------------
Tons mined
 (thousands) 10,803  9,435    629    588  2,786    470  34,181 34,779
Tons
 processed
 (thousands)  2,594  2,608    629    596    535    579   5,266  4,892
Average
 grade
 (ounces per
 ton)         0.096  0.098  0.174  0.166  0.163  0.130   0.060  0.067
Recovery
 rate
 (percent)    89.9%  90.8%  97.1%  96.5%  97.1%  94.9%   83.2%  84.5%
---------------------------------------------------------------------
Production
 (thousands
 of ounces)     223    227    105     95     85     71     262    291

Production costs
 per ounce
  Cash
   operating
   costs       $175   $154   $161   $161   $168   $199    $213   $183
  Royalties
   and
   production
   taxes          8      8      8      6      8      6       7      7
---------------------------------------------------------------------
  Total cash
   costs        183    162    169    167    176    205     220    190

  Amortization   34     42     44     42     36     46      52     44
  Reclamation     2      5      2      2      4      5       6      7
---------------------------------------------------------------------
Total
 production
 costs         $219   $209   $215   $211   $216   $256    $278   $241
---------------------------------------------------------------------
Capital
 expenditures
 (US$ millions) $14     $7     $5    $10     $4     $4      $7     $6
---------------------------------------------------------------------


Mine Statistics
                                                 CANADA
---------------------------------------------------------------------
                                    Hemlo   Eskay Creek         Holt-
                                                            McDermott
Three months ended
 September 30,                2002   2001   2002   2001   2002   2001
---------------------------------------------------------------------
Tons mined (thousands)         995    940     60     57    118    120
Tons processed (thousands)     455    488     65     57    119    128
Average grade (ounces per
 ton)                        0.146  0.143  1.448  1.515  0.168  0.170
Recovery rate (percent)      95.7%  92.7%  91.2%  93.7%  94.7%  94.9%
---------------------------------------------------------------------
Production (thousands of
 ounces)                        63     67     85     79     19     21

Production costs per ounce
 Cash operating costs        $ 237  $ 200   $ 39   $ 55  $ 174  $ 132
 Royalties and production
 taxes                           7      5      4      4      -      1
---------------------------------------------------------------------
 Total cash costs              244    205     43     59    174    133
 Amortization                   37     37    134    125    100     90
 Reclamation                     4      5      1      1      5      4
---------------------------------------------------------------------
Total production costs       $ 285  $ 247  $ 178  $ 185  $ 279  $ 227
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)                $ 2  $   3    $ 5    $ 5    $ 2    $ 1
---------------------------------------------------------------------


Nine months ended
 September 30,                2002   2001   2002   2001   2002   2001
---------------------------------------------------------------------
Tons mined (thousands)       3,012  2,536    185    168    378    356
Tons processed (thousands)   1,413  1,434    189    169    378    364
Average grade (ounces
 per ton)                    0.139  0.157  1.498  1.545  0.173  0.164
Recovery rate (percent)      94.4%  92.8%  92.5%  93.2%  94.7%  95.3%
---------------------------------------------------------------------
Production (thousands of
 ounces)                       186    217    262    238     62     57

Production costs per ounce
 Cash operating costs        $ 234  $ 203   $ 32   $ 48  $ 166  $ 167
 Royalties and
 production taxes                8      6      4      4      -      2
---------------------------------------------------------------------
 Total cash costs              242    209     36     52    166    169
 Amortization                   37     32    130    126     93     88
 Reclamation                     4      4      1      1      4      4
---------------------------------------------------------------------
Total production costs       $ 283  $ 245  $ 167  $ 179  $ 263  $ 261
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)                $ 5    $ 4    $ 8    $ 8    $ 5    $ 5
---------------------------------------------------------------------


Mine Statistics

                                                 PERU        TANZANIA
---------------------------------------------------------------------
                                              Pierina      Bulyanhulu
Three months ended September 30,         2002    2001    2002    2001
---------------------------------------------------------------------
Tons mined (thousands)                  8,204   7,856     241     152
Tons processed (thousands)                  -       -     265     282
Average grade (ounces per ton)          0.083   0.109   0.376   0.369
Recovery rate (percent)                     -       -   86.5%   81.9%
---------------------------------------------------------------------
Production (thousands of ounces)          219     265      86      85

Production costs per ounce
 Cash operating costs                    $ 77    $ 40   $ 192   $ 191
 Royalties and production taxes             -       -       7       8
---------------------------------------------------------------------
 Total cash costs                          77      40     199     199
 Amortization                             180     185      99      97
 Reclamation                               10       8       1       1
---------------------------------------------------------------------
Total production costs                  $ 267   $ 233   $ 299   $ 297
---------------------------------------------------------------------
Capital expenditures (US$ millions)       $ 7     $ 9    $ 12    $ 21
---------------------------------------------------------------------


Nine months ended September 30,          2002    2001    2002    2001
---------------------------------------------------------------------
Tons mined (thousands)                 23,446  22,691     684     302
Tons processed (thousands)                  -       -     801     506
Average grade (ounces per ton)          0.075   0.103   0.371   0.363
Recovery rate (percent)                     -       -   85.2%   81.0%
---------------------------------------------------------------------
Production (thousands of ounces)          617     692     256     149

Production costs per ounce
 Cash operating costs                    $ 74    $ 40   $ 195   $ 194
 Royalties and production taxes             -       -       8       8
---------------------------------------------------------------------
 Total cash costs                          74      40     203     202
 Amortization                             180     188      95      94
 Reclamation                               10       8       1       1
---------------------------------------------------------------------
Total production costs                  $ 264   $ 236   $ 299   $ 297
---------------------------------------------------------------------
Capital expenditures (US$ millions)      $ 16    $ 16    $ 44   $ 125
---------------------------------------------------------------------


CORPORATE OFFICE                  TRANSFER AGENTS AND REGISTRARS

Barrick Gold Corporation          CIBC Mellon Trust Company
Royal Bank Plaza,                 P.O. Box 7010,
 South Tower, Suite 2700          Adelaide Street Postal Station
200 Bay Street, P.O. Box 119      Toronto, Ontario M5C 2W9
Toronto, Canada 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
Email: investor@barrick.com       Web site: www.cibcmellon.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
La Bourse de Paris                 within the United States:
                                   1-800-589-9836
                                  Web site: www.mellon-investor.com

RECENT RESEARCH REPORTS

Bear Stearns                   INVESTOR CONTACTS:  MEDIA CONTACT:
BMO Nesbitt Burns              Richard Young       Vincent Borg
CIBC World Markets             Vice President,     Vice President,
Credit Suisse First Boston     Investor            Corporate
Goldman Sachs                   Relations           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
Salomon Smith Barney           Sandra Grabell
Scotia Capital                 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, and Barrick's press releases of July 10, and September 17, 2002.

--30--LS/na*

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




Stay Connected







Email Alerts

Email Address *
Mailing Lists *


 
Enter the code shown above.

By providing your e-mail address, you are consenting to receive press releases, quarterly and annual reports, presentations and other information concerning Barrick Gold Corporation and its affiliates and partners. You may withdraw your consent at any time using the unsubscribe link below.

Unsubscribe

Email Address:  *
Gold  $ 1,289.13 +7.21 +0.56% Volume: October 19, 2017
ABX NYSE  $ 16.23 +0.06 +0.37% Volume: 4,148,722 October 19, 2017
ABX TSX  $ 20.23 +0.07 +0.35% Volume: 662,648 October 19, 2017
Gold  $ 1,289.13 +7.21 +0.56% Volume: October 19, 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.

World Gold Council MemberMember of ICMM

En Español