news-details

Barrick Earns $59 Million or $0.11 per Share in Second Quarter

July 28, 2003

TORONTO--(BUSINESS WIRE)--July 28, 2003--Barrick Gold Corporation (NYSE:ABX) (TSX:ABX) (LSE:ABX) (PARIS:ABX) (Swiss:ABX):

Part 2 of 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 United States dollar is the principal currency of our
operations. We prepare and file our primary consolidated financial
statements in United States dollars and under United States generally
accepted accounting principles ("US GAAP"). The accompanying unaudited
interim consolidated financial statements have been prepared in
accordance with 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, 2002.
    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, 2003 are not necessarily indicative of the
results that may be expected for the full year ending December 31,
2003. 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, 2002.
    The preparation of financial statements under US GAAP requires us
to make estimates and assumptions that affect:

    --  the reported amounts of assets and liabilities;

    --  disclosures of contingent assets and liabilities; and

    --  revenues and expenses recorded in each reporting period.

    The most significant estimates and assumptions that affect our
financial position and results of operations are those that use
estimates of proven and probable gold reserves, and/or assumptions of
future gold prices. Such estimates and assumptions affect:

    --  the value of inventories (which are stated at the lower of
        average cost and net realizable value);

    --  decisions as to when exploration and mine development costs
        should be capitalized or expensed;

    --  whether property, plant and equipment and capitalized mining
        costs may be impaired;

    --  our ability to realize income tax benefits recorded as
        deferred income tax assets; and

    --  the rate at which we charge amortization to earnings.

    We also estimate:

    --  costs associated with reclamation and closure of mining
        properties;

    --  remediation costs for inactive properties;

    --  the timing and amounts of forecasted future expenditures that
        represent the hedged items underlying hedging relationships
        for our cash flow hedge contracts;

    --  the fair values of derivative instruments; and

    --  the likelihood and amounts associated with contingencies.

    We regularly review the estimates and assumptions that affect our
financial statements; however, what actually happens could differ from
those estimates and assumptions.

2   ACCOUNTING CHANGES

A   FAS 143, Accounting for asset retirement obligations

    On January 1, 2003, we adopted FAS 143 and changed our accounting
policy for recording obligations relating to the retirement of
long-lived assets. FAS 143 applies to legal obligations associated
with the retirement of long-lived assets that result from the
acquisition, construction, development and/or the normal operation of
a long-lived asset. Under FAS 143 we record the fair value of a
liability for an asset retirement obligation in the period in which it
is incurred. When the liability is initially recorded, we capitalize
the cost by increasing the carrying amount of the related long-lived
asset. Over time, the liability is increased to reflect an interest
element (accretion expense) considered in its initial measurement at
fair value, and the capitalized cost is amortized over the useful life
of the related asset. Upon settlement of the liability, we will record
a gain or loss if the actual cost incurred is different than the
liability recorded. On adoption of FAS 143 in our balance sheet we
recorded an increase in property, plant and equipment by $39 million;
an increase in other long-term obligations by $32 million; and an
increase in deferred income tax liabilities by $3 million. In the
first quarter of 2003, we recorded in our income statement a $4
million credit for the cumulative effect of this accounting change.
    Following the adoption of FAS 143, the total amount of recognized
liabilities for asset retirement obligations was $334 million. These
liabilities mainly relate to obligations at our active and inactive
mines to perform reclamation and remediation activities to meet
existing environmental laws and regulations that govern our mining
properties.
    The comparative amount of these liabilities would have been $353
million at December 31, 2001, using the principles of FAS 143, and
using current information, assumptions and interest rates.
    For the three-month period ended June 30, 2003, the effect on
earnings of adopting FAS 143 was a decrease in income before the
cumulative effect of accounting changes by $4 million ($0.01 per
share), and for the six-month period ended June 30, 2003 the effect
was a decrease in income before the cumulative effect of accounting
changes by $8 million ($0.02 per share).
    For the three-month period ended June 30, 2002, the effect of
adopting FAS 143 would have been a decrease in income before the
cumulative effect of accounting changes by $1 million ($nil per
share), and for the six-month period ended June 30, 2002, the effect
would have been a decrease in income before the cumulative effect of
accounting changes by $2 million ($nil per share).

B   Amortization of underground development costs

    Effective January 1, 2003, we changed our accounting policy for
amortization of underground mine development costs to exclude
estimates of future underground development costs. Future underground
development costs, which are significant, are necessary to develop our
underground ore bodies, expected to be mined in some cases over the
next 25 years.
    Previously, we amortized the total of historical capitalized costs
and estimated future costs using the units of production method over
total proven and probable reserves at our underground mining
operations. This accounting change was made to better match
amortization with ounces of gold sold and to remove the inherent
uncertainty in estimating future development costs from amortization
calculations.
    Under our revised accounting policy, costs incurred to access
specific ore blocks or areas, and that only provide benefit over the
life of that area, are amortized over the proven and probable reserves
within the specific ore block or area. Infrastructure and other common
costs which have a useful life over the entire mine life continue to
be amortized over total proven and probable reserves.
    The cumulative effect of this change at January 1, 2003, was to
decrease property, plant and equipment by $19 million, and increase
deferred income tax liabilities by $2 million. In the first quarter of
2003 we recorded in our income statement a $21 million charge for the
cumulative effect of this change.
    For the three-month period ended June 30, 2003, the effect of
adopting this accounting change was a decrease in income before the
cumulative effect of accounting changes by $0.2 million ($nil per
share), and for the six-month period ended June 30, 2003, the effect
was a decrease in income before the cumulative effect of accounting
changes by $0.4 million ($nil per share).
    If the comparative income statements had been adjusted for the
retroactive application of this change in amortization policy, there
would have been no effect on net income for the three-month period
ended June 30, 2002, or six-month period ended June 30, 2002.

C   Accounting estimates

    Pension costs

    In 2003, we reduced the assumed rate of return on pension plan
assets from 8.5% to 7%. The effect of this change in 2003 will be to
increase pension cost expense by $2 million for the full year.

3   OPERATING COSTS

---------------------------------------------------------------------
                            Three months ended       Six months ended
                                  June 30,               June 30,
                              2003        2002        2003       2002
---------------------------------------------------------------------
Cost of goods sold           $ 270 $ 276 $ 532 $ 552
By-product revenues           (26)        (31)        (53)       (61)
Royalty expenses                11           9          22         17
Production taxes                 3           1           8          2
Reclamation and other closure
 costs (note 2A)                 -           7           -         18
Accretion expense on
 reclamation/closure
 obligations and non-legal
 reclamation/closure costs
 (note 2A)                      13           -          25          -
---------------------------------------------------------------------
                             $ 271 $ 262 $ 534 $ 528
---------------------------------------------------------------------

    Amortization of capitalized mining costs

    We charge most mine operating costs to inventory as incurred.
However, we defer and amortize certain mining costs associated with
open-pit deposits that have diverse ore grades and waste-to-ore ton
ratios over the mine life. These mining costs arise from the removal
of waste rock at our open-pit mines, and we commonly refer to them as
"deferred stripping costs". We record in cost of goods sold
amortization of amounts deferred based on a "stripping ratio" using
the units-of-production method. This accounting method results in the
smoothing of these costs over the life of mine, rather than expensing
them as incurred. Some mining companies expense these costs as
incurred, which may result in the reporting of greater volatility in
period-to-period results of operations. The application of our
deferred stripping accounting policy in the three months ended June
30, 2003 resulted in a decrease in operating costs by $3 million
compared to actual costs incurred (three months ended June 30, 2002 -
$3 million decrease), and for the six months ended June 30, 2003, the
application resulted in an increase in operating costs by $16 million
compared to actual costs incurred (six months ended June 30, 2002 - $2
million increase).
    Capitalized mining costs are an asset that represents the excess
of costs capitalized over the related amortization recorded, although
it is possible that a liability could arise if cumulative amortization
exceeds costs capitalized. The carrying amount of capitalized mining
costs is included with related mining property, plant and equipment
for impairment testing purposes.


Average stripping ratios (1)
---------------------------------------------------------------------
                              Three months ended     Six months ended
                                     June 30,             June 30,
                                  2003      2002       2003      2002
---------------------------------------------------------------------
Betze-Post (Goldstrike)          112:1     112:1      112:1     112:1
Pierina                           48:1      48:1       48:1      48:1
---------------------------------------------------------------------

(1) The stripping ratio is calculated as the ratio of total tons (ore
    and waste) of material to be moved compared to total recoverable
    proven and probable gold reserves.

    The average remaining life of the above-mentioned open-pit mine
operations for which we capitalize mining costs is 9 years. The full
amount of stripping costs incurred will be expensed by the end of the
mine lives.

4   INTEREST AND OTHER INCOME

---------------------------------------------------------------------
                              Three months ended     Six months ended
                                     June 30,             June 30,
                                  2003      2002       2003      2002
---------------------------------------------------------------------
Interest income                  $   8 $   7 $   16 $   14
Gains on sale of property,
 plant and equipment                11         4         16         5
Foreign currency translation
 losses                            (4)       (2)        (5)       (2)
Losses on short-term investments     -         -        (7)       (4)
Other items                        (5)       (2)        (5)         3
---------------------------------------------------------------------
                                 $  10 $   7 $   15 $   16
---------------------------------------------------------------------

5   INCOME TAXES

Income tax recovery (expense)
---------------------------------------------------------------------
                              Three months ended     Six months ended
                                     June 30,             June 30,
                                  2003      2002       2003      2002
---------------------------------------------------------------------
Current                       $   (21)     $   6    $  (32)  $   (10)
Deferred                            36       (9)         45         6
---------------------------------------------------------------------
                              $     15     $ (3)    $    13  $    (4)
---------------------------------------------------------------------

    Following a corporate reorganization of certain North American
subsidiaries in second quarter 2003, we released valuation allowances
totaling $21 million previously recorded against certain deferred
income tax assets in entities that did not have any current sources of
income. The tax benefits from these previously unrecognized tax assets
are now expected to be realized, and this benefit was recorded as a
component of the $36 million deferred income tax credit in second
quarter 2003.
    Excluding the $21 million valuation allowance released in second
quarter 2003, our estimated underlying effective tax rate for the six
months ended June 30, 2003 was 9%. The two major reasons why this rate
differs from the Canadian federal statutory rate of 38% include:
non-hedge derivative gains in a low tax-rate jurisdiction caused our
effective tax rate to decrease by 16%; and the benefits of previously
unrecognized tax loss carryforwards in various foreign subsidiaries
were utilized to offset higher levels of taxable income due to the
higher gold price environment caused our effective tax rate to
decrease by 20%.

6   EARNINGS PER SHARE

    Net income per share was calculated on the basis of the weighted
average number of common shares outstanding for the three month period
ended June 30, 2003, which amounted to 540 million shares (2002 - 539
million shares), and for the six month period ended June 30, 2003
amounted to 541 million shares (2002 - 539 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 period ended June 30, 2003
amounted to 540 million shares (2002 - 541 million shares) and for the
six month period ended June 30, 2003 amounted to 541 million shares
(2002 - 541 million shares).

7   COMPREHENSIVE INCOME

    Comprehensive income consists of net income and other gains and
losses that are excluded from net income. Other gains and losses
consist mainly of gains and losses on derivative instruments accounted
for as cash flow hedges; unrealized gains and losses on investments;
and foreign currency translation adjustments.

Parts of comprehensive income (loss)
---------------------------------------------------------------------
                  Three months ended            Six months ended
                       June 30,                     June 30,
                  2003           2002          2003          2002
---------------------------------------------------------------------
            Pre-tax  Tax   Pre-tax  Tax  Pre-tax  Tax  Pre-tax  Tax
             amount effect  amount effect amount effect amount effect
---------------------------------------------------------------------
Foreign currency
 translation
 adjustments    $ 4    $ -   $ (4)    $ -  $ (1)    $ - $ (12)    $ -
Transfers of
 realized gains
 on cash flow
 hedges to
 earnings (note
 11F)          (21)      5    (10)      3   (35)     10   (13)      3
Hedge
 ineffectiveness
 transferred to
 earnings (note
 11F)           (6)      2       -      -    (6)      2      -      -
Change in fair
 value of cash
 flow hedges
 (note 11F)     141   (42)      35   (14)    219   (72)     37   (14)
Transfers of
 losses on
 available-for-sale
 securities to
 earnings         -      -       -      -      7      -      -      -
Unrealized gains
 (losses) on
 available-for-sale
 securities       4      -     (3)      -      3      -    (3)      -
---------------------------------------------------------------------
              $ 122  $(35)    $ 18  $(11)  $ 187 $ (60)    $ 9  $(11)
---------------------------------------------------------------------


Accumulated other comprehensive income (loss) (OCI)
---------------------------------------------------------------------
                          At June 30, 2003       At December 31, 2002
---------------------------------------------------------------------
                   Pre-tax    Tax            Pre-tax    Tax
                    amount effect    Total    amount effect     Total
---------------------------------------------------------------------
Foreign currency
 translation
 adjustments       $ (145)    $ -  $ (145)   $ (144)    $ -   $ (144)
Accumulated gains
 on cash flow
 hedges (note 11F)     227   (77)      150        49   (17)        32
Additional minimum
 pension liability     (7)      -      (7)       (7)      -       (7)
Unrealized gains
 (losses) on
 available-for-sale
 securities              4      -        4       (6)      -       (6)
---------------------------------------------------------------------
                      $ 79 $ (77)      $ 2    $(108)  $(17)   $ (125)
---------------------------------------------------------------------


8   INVENTORIES AND OTHER CURRENT ASSETS

---------------------------------------------------------------------
                                  At June 30, 2003   At Dec. 31, 2002
---------------------------------------------------------------------
Gold in process and ore in stockpiles      $   100 $   100
Mine operating supplies                         60                 59
Derivative assets (note 11)                     38                 37
Prepaid expenses                                 3                 10
---------------------------------------------------------------------
                                           $   201 $   206
---------------------------------------------------------------------

    Gold in process and ore in stockpiles excludes $63 million
(December 31, 2002 - $61 million) of stockpiled ore, which is not
expected to be processed in the following 12 months. This amount is
included in other assets.

9   CAPITAL STOCK

A   Share repurchase program

    During the three month period ended June 30, 2003, we repurchased
3.48 million common shares at an average cost of $17.95 per share.

B   Barrick Gold Inc. ("BGI") exchangeable shares

    In connection with a 1998 acquisition, BGI, formerly Homestake
Canada Inc., issued 11.1 million BGI exchangeable shares. Each BGI
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. BGI is a subsidiary that holds our
interest in the Hemlo and Eskay Creek Mines.
    At June 30, 2003, 1.6 million BGI exchangeable shares were
outstanding, which are equivalent to 0.8 million Barrick common
shares. The equivalent common share amounts are reflected in the
number of common shares outstanding.
    At any time on or after December 31, 2008, or when fewer than 1.4
million BGI exchangeable shares are outstanding, we have the right to
require the exchange of each outstanding BGI exchangeable share for
0.53 of a Barrick common share. While there are exchangeable shares
outstanding, we are required to present summary consolidated financial
information relating to BGI for holders of exchangeable shares.


Summarized financial information for BGI
---------------------------------------------------------------------
                              Three months ended     Six months ended
                                     June 30,             June 30,
                                  2003      2002       2003      2002
---------------------------------------------------------------------
Total revenues and other income $   53 $   48 $   105 $   103
Less: costs and expenses            63        53        116       102
---------------------------------------------------------------------
Income (loss) before taxes:     $ (10)    $  (5)    $  (11)   $     1
---------------------------------------------------------------------
Net loss                        $ (22)    $ (10)    $  (44)   $   (5)
---------------------------------------------------------------------

---------------------------------------------------------------------
                                         At June 30,  At December 31,
                                                2003             2002
---------------------------------------------------------------------
Current assets                                $   98 $   91
Non-current assets                               276              236
---------------------------------------------------------------------
Total assets                                     374              327
---------------------------------------------------------------------
Other current liabilities                         14               75
Notes payable                                    466              407
Other long-term liabilities                       84               18
Deferred income taxes                            123              122
Shareholders' equity                           (313)            (295)
---------------------------------------------------------------------
Total liabilities and shareholders' equity   $   374 $   327
---------------------------------------------------------------------

10  EMPLOYEE STOCK-BASED COMPENSATION

Common stock options

Stock option activity (shares in millions)
---------------------------------------------------------------------
                               Common   Weighted   Common    Weighted
                               shares    average   shares     average
                             (number) price (C$) (number) price (US$)
---------------------------------------------------------------------
At December 31, 2002             18.9                 3.1
   Granted                        0.6   $  23.67        -           -
   Canceled or expired          (0.4)   $  30.03    (0.1)    $  23.28
---------------------------------------------------------------------
At June 30, 2003                 19.1                 3.0
---------------------------------------------------------------------

    Under APB 25, we recognize compensation cost for stock options in
earnings based on the excess, if any, of the quoted market price of
the stock at the grant date of the award over the option exercise
price. Generally, the exercise price for stock options granted to
employees equals the fair market value of our common stock at the date
of grant, resulting in no compensation cost.
    FASB Statement No. 123 (Accounting for Stock-Based Compensation) (
FAS 123) encourages, but does not require, companies to record
compensation cost for stock-based employee compensation plans based on
the fair value of options granted. We have elected to continue to
account for stock-based compensation using the intrinsic value method
prescribed in Accounting Principles Board Opinion No. 25 (Accounting
for Stock Issued to Employees) (APB 25) and its related
interpretations, and to provide disclosures of the pro forma effects
of adoption had we recorded compensation expense under the fair value
method.


Stock option expense (per share amounts in dollars)
---------------------------------------------------------------------
                              Three months ended     Six months ended
                                     June 30,             June 30,
                                  2003      2002       2003      2002
---------------------------------------------------------------------
Pro forma effects
Net income, as reported         $   59 $   59 $   88 $   105
Stock-option expense               (6)       (5)       (12)      (10)
---------------------------------------------------------------------
Pro forma net income            $   53 $   54 $   76 $    95
---------------------------------------------------------------------
Net income per share
As reported (1)                 $ 0.11 $ 0.11 $ 0.16 $  0.20
Pro forma (1)                   $ 0.10 $ 0.10 $ 0.14 $  0.18
---------------------------------------------------------------------
(1) basic and diluted


11  DERIVATIVE INSTRUMENTS

A   Derivative instruments

    We use derivative financial instruments to reduce or eliminate the
inherent risks of certain identifiable transactions and balances that
occur in the normal course of our business. The inherent risks in
these transactions and balances arise from changes in: commodity
prices (gold and silver), interest rates and foreign currency exchange
rates. The purpose of our derivative program is to ensure that
disadvantageous changes in the values or cash flows from these
transactions and balances are offset by changes in the values of the
derivatives. We do not hold derivatives for the purpose of
speculation; our derivative program is designed to enable us to plan
our operations on the basis of secure assumptions that will not be
jeopardized by future movements of gold and silver prices, interest
rates and currency exchange rates. For a more detailed description of
the types of derivative instruments we use, and our accounting policy
for derivative instruments, refer to note 23 to our audited
consolidated financial statements for the three years ended December
31, 2002.

B   Gold and silver hedge contracts

    Forward gold sales contracts

    We have entered into forward gold sales contracts with various
counterparties that fix selling prices at interim dates prior to the
final delivery date for 16.1 million ounces of future gold production,
and that have fixed price adjustment mechanisms based on the market
gold price in the case of rescheduling of delivery dates. These
contracts act as an economic hedge against possible price fluctuations
in gold. The contracts have final delivery dates primarily over the
next 10 to 15 years, but we have the right to accelerate the delivery
date at any time during this period. At the time a price is set for a
rescheduled interim date, the original contract price is adjusted
based on the difference between the prevailing forward gold market
price and the spot price of gold.
    For the large majority of contracts, future prices are presently
fixed through 2006. The contract prices are determined based on gold
forward market prices. Forward gold market prices are principally
influenced by the spot price of gold, gold lease rates and U.S. dollar
interest rates. The actual realized price will depend on the timing of
the actual future delivery date and the actual amount of the premium
of the forward price of gold over the spot price of gold on the dates
that selling prices are set.

    Gold lease rate contracts

    In addition to the above-noted forward gold sales contracts, we
also have gold lease rate swaps (where Barrick receives a fixed gold
lease rate, and pays a floating gold lease rate) on 4.9 million ounces
of gold spread from 2004 to 2013, for gold sales contracts with
expected delivery dates beyond 2006.
    We use gold lease rate swap contracts to manage our gold lease
rate exposure. These economic hedges do not qualify for hedge
accounting under FAS 133 and therefore the economic impact flows
through our earnings each quarter as part of non-hedge derivative
gains (losses).

    Major customers

    The largest single counterparty as of June 30, 2003 made up 11% of
the ounces of outstanding forward gold sales contracts.

    Forward silver sales contracts

    Forward silver sales contracts have similar delivery terms and
pricing mechanisms as forward gold sales contracts. At June 30, 2003,
we had commitments to deliver 32.2 million ounces of silver over
periods of up to 10 to 15 years. A group of these contracts totaling
13.2 million ounces of silver are accounted for as normal sales
contracts.
    A separate group of contracts totaling 19 million ounces are
accounted for as derivatives under FAS 133. During the second quarter
2003, hedge accounting treatment for these contracts was discontinued
prospectively. Despite the fact that these contracts act as effective
economic hedges, we determined that they no longer meet the strict FAS
133 hedge criteria. The effect of reclassifying accumulated gains from
OCI to the income statement was a gain of $0.2 million.


C   Other derivative instruments outstanding as at June 30, 2003
---------------------------------------------------------------------
Maturity             2003    2004   2005   2006   2007  2008+   Total
---------------------------------------------------------------------
Written silver
 call options
  Ounces
   (thousands)      2,750   3,000  2,000      -      -      -   7,750
  Average exercise
   price per ounce $ 5.00 $ 5.40 $ 5.00      -      -      -  $ 5.15
---------------------------------------------------------------------
Interest rate
 contracts
Receive fixed - swaps
  Notional amount
   (millions)           -   $ 150 $ 75 $ 100 $ 525 $ 200 $ 1,050
  Fixed rate (%)        -    3.6%   2.7%   3.0%   3.5%   3.8%    3.5%
Pay fixed - swaps
  Notional amount
   (millions)           -       -      -      -      -  $ 334 $ 334
  Fixed rate (%)        -       -      -      -      -   5.6%    5.6%
---------------------------------------------------------------------
Net notional
 position               -   $ 150 $ 75 $ 100 $ 525 $(134)   $ 716
---------------------------------------------------------------------
Foreign currency
 contracts
Canadian Dollar
 Forwards
  C$ (millions)     $ 156 $ 295 $ 206 $ 38 $ 96 $ 22 $ 813
  Average Price (US
   cents)            0.65    0.65   0.64   0.66   0.67   0.68    0.65
Canadian Dollar
 Min-Max Contracts
  C$ (millions)      $ 53       -      -      -      -      -    $ 53
  Average Cap Price
   (US cents)        0.65       -      -      -      -      -    0.65
  Average Floor
   Price (US cents)  0.63       -      -      -      -      -    0.63
Australian Dollar
 Forwards
  A$ (millions)     $ 135 $ 430 $ 320 $ 135 $ 139 $ 19 $ 1,178
  Average Price (US
   cents)            0.54    0.53   0.51   0.56   0.58   0.53    0.54
Australian Dollar
 Min-Max Contracts
  A$ (millions)     $ 195 $ 20 $ 10 $ 10      -      -   $ 235
  Average Cap Price
   (US cents)        0.55    0.54   0.52   0.52      -      -    0.55
  Average Floor
   Price (US cents)  0.53    0.52   0.51   0.51      -      -    0.53
Fuel contracts
  Barrels WTI
   (thousands)        120     180      -      -      -      -     300
  Cap                $ 30 $ 30      -      -      -      -    $ 30
  Floor              $  -    $ 19      -      -      -      -    $ 19
---------------------------------------------------------------------

    Our written silver call options, interest rate and foreign
currency contracts are recorded at fair value on our balance sheet,
with changes in fair value recorded in earnings as they occur, with
the following exceptions:

    --  we have elected for cash flow hedge accounting treatment for
        Canadian dollar foreign currency contracts with a total
        notional amount of C$837 million, and Australian dollar
        foreign currency contracts with a total notional amount of
        A$1,365 million.

    --  we have elected for receive-fixed interest rate swaps with a
        total notional amount of $800 million to be accounted for as
        cash flow hedges of expected future interest receipts arising
        on our cash and short-term investments; and we have elected
        for receive-fixed interest rate swaps with a total notional
        amount of $250 million to be accounted for as a fair value
        hedge of fixed-rate debentures.

    --  we have elected for an amortizing pay-fixed interest rate swap
        with a total notional amount of $184 million as at June 30,
        2003 to be accounted for as a cash flow hedge of future
        interest payments relating to the project financing for
        Bulyanhulu.

D   Unrealized fair value of derivative instruments (excluding
normal sales contracts)

---------------------------------------------------------------------
                              Three months ended     Six months ended
                                     June 30,             June 30,
                                  2003      2002       2003      2002
---------------------------------------------------------------------
Beginning of period            $   127  $   (30)     $   29  $   (16)
Derivative instruments entered
 into or settled                  (14)         5       (30)      (10)
Change in fair value of
 derivative instruments:
   Non-hedge derivatives             4        12         40        11
   Cash flow hedges                141        38        219        40
   Fair value hedges                 4         -          4         -
---------------------------------------------------------------------
End of period                  $   262 $    25 $   262 $    25
---------------------------------------------------------------------

    The fair values of recorded derivative 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 $16 million at June 30, 2003.

E   Non-hedge derivative gains

---------------------------------------------------------------------
                              Three months ended     Six months ended
                                     June 30,             June 30,
                                  2003      2002       2003      2002
---------------------------------------------------------------------
Commodity contracts              $   5   $   (2)     $    6  $   (12)
Currency contracts                   5        13          6        15
Interest and lease rate contracts  (6)         1         28         8
Hedge ineffectiveness recorded
 in earnings                         6         -          6         -
---------------------------------------------------------------------
                                $   10 $    12 $   46 $    11
---------------------------------------------------------------------

F   Change in fair value of cash flow hedge contracts

---------------------------------------------------------------------
                                       Foreign
                          Commodity   currency Interest-rate
                          contracts  contracts     contracts    Total
---------------------------------------------------------------------
As at December 31, 2002 $   9 $   26 $   14 $   49
Change in fair value              4        193            22      219
Hedge gains transferred
 to earnings                    (6) (1)   (22) (2)       (7) (3) (35)
Hedge ineffectiveness
 transferred to earnings          -        (5)           (1)      (6)
---------------------------------------------------------------------
As at June 30, 2003 $   7 $   192 $   28 $   227
---------------------------------------------------------------------
  1. Included under revenues
  2. Included under costs and expenses
  3. Included under interest income

    In the next twelve months, we expect to transfer gains, excluding
the related tax effects, of $83 million from OCI to earnings. During
the quarter, we determined that certain Australian dollar hedge
contracts designated as hedges of forecasted capital expenditures no
longer met the qualifying FAS 133 hedge criteria due to changes in the
expected timing of the forecasted expenditures. Accumulated gains
totaling $5 million were recorded under non-hedge derivative gains.
For the three and six month periods ended June 30, 2003, the total
amount of hedge ineffectiveness, including the gains on capital
expenditure hedges, recorded and recognized in non-hedge derivative
gains was a gain of $6 million and a gain of $5.5 million respectively
(2002 - $nil and $nil respectively).

12  CONTINGENCIES

    Certain conditions may exist as of the date the financial
statements are issued, which may result in a loss to the Company but
which will only be resolved when one or more future events occur or
fail to occur. Management and, where appropriate, legal counsel,
assess such contingent liabilities, which inherently involves an
exercise of judgment.
    In assessing loss contingencies related to legal proceedings that
are pending against us or unasserted claims that may result in such
proceedings, the Company and its legal counsel evaluate the perceived
merits of any legal proceedings or unasserted claims as well as the
perceived merits of the amount of relief sought or expected to be
sought.
    If the assessment of a contingency suggests that it is probable
that a material loss has been incurred and the amount of the liability
can be estimated, then the estimated liability is accrued in the
financial statements. If the assessment suggests that a potentially
material loss contingency is not probable but is reasonably possible,
or is probable but cannot be estimated, then the nature of the
contingent loss, together with an estimate of the range of possible
loss, if determinable, is disclosed. Loss contingencies considered
remote are generally not disclosed unless they involve guarantees, in
which case we disclose the nature of the guarantee.

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 meet such laws and
regulations.
    The Comprehensive Environmental Response, Compensation and
Liability Act imposes heavy liabilities on persons who discharge
hazardous substances. The Environmental Protection Agency publishes a
National Priorities List ("NPL") of known or threatened releases of
such substances. Homestake's former uranium millsite near Grants, New
Mexico is listed on the NPL.

B   Litigation and claims

    Inmet litigation

    In October 1997, Barrick Gold Inc. ("BGI"), formerly Homestake
Canada Inc., 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, BGI terminated the agreement after deciding 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 BGI in the British
Columbia Supreme Court disputing the termination of the agreement and
alleging that BGI 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 BGI. Specifically, the Court
held that Inmet should be awarded equitable damages in the amount of
C$88.2 (US $59) million, which was accrued at December 31, 2001. The
Court did not award Inmet pre-judgment interest. Inmet requested the
Court to re-open the trial to let Inmet make submissions on its claim
for pre-judgment interest from the date of the breach by BGI. The
request to re-open was denied by the Court on May 17, 2002.
    On February 7, 2002, BGI filed a Notice of Appeal of the decision
with the British Columbia Court of Appeal. Inmet filed a Cross-Appeal
of the decision regarding pre-judgment interest. A letter of credit of
about C$95 million was posted on August 20, 2002 by BGI with the
British Columbia Court of Appeal, pending a decision on the appeal.
The Appeal of BGI and the Cross-Appeal of Inmet was heard during June
2003.

    Bre-X Minerals

    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
presently determinable.
    On March 31, 2003, the Court denied all of the Plaintiffs' motions
to certify the case as a class action. Plaintiffs have not filed an
interlocutory appeal of the Court's decision denying class
certification to the Fifth Circuit Court of Appeals. The Plaintiffs'
case against the Defendants may now proceed in due course, but not on
behalf of a class of Plaintiffs but only with respect to the specific
claims of the Plaintiffs named in the lawsuit. Having failed to
certify the case as a class action, we believe that the likelihood of
any of the named Defendants succeeding against Barrick with respect to
their claims for securities fraud is remote.

    Blanchard complaint

    On January 7, 2003, we were served with a Complaint for Injunctive
Relief by Blanchard and Company, Inc. ("Blanchard"), and Herbert
Davies ("Davies"). The complaint, which is pending in the U. S.
District Court for the Eastern District of Louisiana, also names J. P.
Morgan Chase & Company ("J.P. Morgan") as the defendant, along with an
unspecified number of additional defendants to be named later. The
complaint, which has been amended several times, alleges that we and
bullion banks with which we entered into spot deferred contracts have
manipulated the price of gold, in violation of U.S. antitrust laws and
the Louisiana Unfair Trade Practices and Consumer Protection Law.
Blanchard alleges that it has been injured as a seller of gold due to
reduced interest in gold as an investment. Davies, a customer of
Blanchard, alleges injury due to the reduced value of his gold
investments. The complaint seeks damages and an injunction terminating
certain of our trading agreements with J. P. Morgan and other bullion
banks. We have applied to the Court for dismissal of this action and
we intend to defend the action vigorously.

    Wagner complaint

    On June 12, 2003, a complaint was filed against Barrick and
several of its current or former officers in the U.S. District Court
for the Southern District of New York. The complaint is on behalf of
Barrick shareholders who purchased Barrick shares between February 14,
2002 and September 26, 2002. It alleges that Barrick and the
individual defendants violated U.S. securities laws by making false
and misleading statements concerning Barrick's projected operating
results and earnings in 2002. The complaint seeks an unspecified
amount of damages. At least two other complaints, making the same
basic allegations against the same defendants, have been filed by
other parties on behalf of the same proposed class of Barrick
shareholders. Apart from the filing of the complaints there have been
no developments in any of the cases. We intend to defend the action
vigorously.

    Peruvian tax assessment

    On December 27, 2002, one of our Peruvian subsidiaries received an
income tax assessment of $41 million, excluding interest and
penalties, from the Peruvian tax authority SUNAT. The tax assessment
relates to a recently completed tax audit of our Pierina Mine for the
1999-2000 fiscal years. The assessment mainly relates to the
revaluation of the Pierina mining concession and associated tax basis.
Under the valuation proposed by SUNAT, the tax basis of Pierina assets
would change from what we have previously assumed with a resulting
increase in current and deferred income taxes. While we believe the
tax assessment is incorrect and we will appeal the decision, the full
life of mine effect on our current and deferred income tax liabilities
of $141 million is recorded at December 31, 2002, as well as other
payments of about $21 million due for periods through 2002.
    We intend to pursue all available administrative and judicial
appeals. If we are successful on appeal and our original asset
valuation is confirmed as the appropriate tax basis of assets, we
would benefit from a $141 million reduction in tax liabilities
recorded at December 31, 2002. The effect of this contingent gain, if
any, will be recorded in the period the contingency is resolved.
    Under Peruvian law, we are not required to make payment of
disputed taxes for prior years pending the outcome of the appeal
process, which routinely takes several years.
    We have not provided for $51 million of potential interest and
penalties assessed in the audit. Even if the tax assessment is upheld,
we believe that we will prevail on the interest and penalties part,
because the assessment runs counter to applicable law and previous
Peruvian tax audits. The potential amount of interest and penalties
will increase over time while we contest the tax assessment. A
liability for interest and penalties will only be recorded should it
become probable that SUNAT's position on interest and penalties will
be upheld, or if we exhaust our appeals.

    Other

    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.

13  SEGMENT INFORMATION

    We operate in the gold mining industry and our operations are
managed on a district basis. The Goldstrike District includes the
Betze-Post and Meikle Mines in the United States. Our "other" segment
includes mainly operations which have been, or are being, closed.


Income statement information
---------------------------------------------------------------------
                                                       Segment income
                                                        (loss) before
                       Gold sales   Operating costs      income taxes
---------------------------------------------------------------------
Three months ended
June 30,            2003     2002     2003     2002     2003     2002
---------------------------------------------------------------------
Goldstrike         $ 175 $ 168 $ 115 $ 110 $ 26 $ 18
Pierina               92       63       21       17       23       14
Bulyanhulu            29       37       19       21        1        6
Kalgoorlie            35       30       21       19        8        6
Eskay Creek           33       32       10        3       11       18
Hemlo                 20       20       15       16        3        2
Plutonic              28       27       17       14        9       10
Round Mountain        38       34       19       19       14       10
Other                 41       79       34       43      (2)       18
---------------------------------------------------------------------
                   $ 491 $ 490 $ 271 $ 262 $ 93 $ 102
---------------------------------------------------------------------


---------------------------------------------------------------------
                                                       Segment income
                                                        (loss) before
                       Gold sales   Operating costs      income taxes
---------------------------------------------------------------------
Six months ended
June 30,            2003     2002     2003     2002     2003     2002
---------------------------------------------------------------------
Goldstrike         $ 358 $ 333 $ 245 $ 219 $ 38 $ 40
Pierina              160      133       37       33       40       29
Bulyanhulu            62       64       37       39        5        7
Kalgoorlie            67       59       41       39       16       10
Eskay Creek           63       60       16        6       23       32
Hemlo                 42       45       29       34        8        6
Plutonic              52       47       30       26       19       16
Round Mountain        67       67       33       39       24       18
Other                 79      160       66       93      (5)       33
---------------------------------------------------------------------
                   $ 950 $ 968 $ 534 $ 528 $ 168 $ 191
---------------------------------------------------------------------

Asset information

Amortization
---------------------------------------------------------------------
                         Three months ended          Six months ended
                              June 30,                   June 30,
                         2003          2002         2003         2002
---------------------------------------------------------------------
Goldstrike               $ 34 $ 40 $ 75 $ 74
Pierina                    48            32           83           71
Bulyanhulu                  9            10           20           18
Kalgoorlie                  6             5           10           10
Eskay Creek                12            11           24           22
Hemlo                       2             2            5            5
Plutonic                    2             3            3            5
Round Mountain              5             5           10           10
Other                      13            18           26           34
---------------------------------------------------------------------
                        $ 131 $ 126 $ 256 $ 249
---------------------------------------------------------------------


Segment capital expenditures
---------------------------------------------------------------------
                         Three months ended          Six months ended
                              June 30,                   June 30,
                         2003         2002          2003         2002
---------------------------------------------------------------------
Goldstrike               $ 16 $ 12 $ 28 $ 24
Pierina                     4            1             5            2
Bulyanhulu                  9           16            19           32
Kalgoorlie                  1            1             2            3
Eskay Creek                 1            1             3            3
Hemlo                       2            2             5            3
Plutonic                   20            5            25            8
Round Mountain              1            6             2            6
Veladero                    3            -             7            -
Pascua-Lama                 4            3             6            6
Cowal                       5            1            10            2
Alto Chicama                1            -             2            -
Other                       2           13            21           19
---------------------------------------------------------------------
                         $ 69 $ 61 $ 135 $ 108
---------------------------------------------------------------------


Reconciliation of segment income to enterprise net income
--------------------------------------------------------------------
                         Three months ended         Six months ended
                              June 30,                  June 30,
                         2003         2002          2003        2002
--------------------------------------------------------------------
Segment total            $ 93 $ 102 $ 168 $ 191
Exploration and business
 development             (34)         (27)          (63)        (47)
Corporate expenses, net  (25)         (25)          (59)        (46)
Non-hedge derivative
 gains                     10           12            46          11
Income tax recovery
 (expense)                 15          (3)            13         (4)
Cumulative effect of
 changes in accounting
 principles                 -            -          (17)           -
--------------------------------------------------------------------
Net income               $ 59 $ 59 $ 88 $ 105
--------------------------------------------------------------------


14  COMPONENTS OF OTHER NET OPERATING ACTIVITIES
--------------------------------------------------------------------
                         Three months ended         Six months ended
                              June 30,                  June 30,
                         2003         2002          2003        2002
--------------------------------------------------------------------
Non-cash charges
 (credits):
  Reclamation costs       $ -          $ 7           $ -        $ 18
  Losses on short-term
   investments              -            -             7           4
  Gains on sale of
   property, plant and
   equipment             (11)          (4)          (16)         (5)
  Cumulative effect of
   changes in accounting
   principles               -            -            17           -
  Accretion expense         4            -             8           -
  Non-hedge derivative
   gains                 (10)         (12)          (46)        (11)
Changes in operating
 assets and liabilities:
  Accounts receivable       5           21             5         (5)
  Inventories and other
   current assets        (12)          (3)             5          35
  Accounts payable        (8)            3           (9)         (9)
  Income taxes payable   (30)         (16)          (55)        (16)
Payments of merger
 related costs              -         (10)             -        (38)
Payments of reclamation
 and closure costs       (10)         (14)          (16)        (22)
Other items              (13)         (15)          (18)        (33)
--------------------------------------------------------------------
Other net operating
 activities            $ (85)       $ (43)       $ (118)      $ (82)
--------------------------------------------------------------------


Mine Statistics

                                    UNITED STATES
---------------------------------------------------------------------
                                             Goldstrike         Round
Three months     Betze-Post        Meikle         Total      Mountain
ended June 30,  2003   2002   2003   2002   2003   2002   2003   2002
---------------------------------------------------------------------
Tons mined
 (thousands)  35,351 36,098    375    393 35,726 36,491  7,394  8,096
Tons
 processed
 (thousands)   2,561  2,499    382    385  2,943  2,884  7,485  8,217
Average grade
 (ounces per
 ton)          0.215  0.156  0.341  0.440  0.232  0.194  0.020  0.020
Recovery rate
 (percent)     82.4%  84.3%  87.1%  91.8%  83.3%  86.6%    N/A    N/A
---------------------------------------------------------------------
Production
 (thousands of
 ounces)         454    329    113    155    567    484    113     95

Production costs
 per ounce
  Cash operating
   costs        $197 $222 $279 $181 $216 $209 $150 $162
  Royalties and
   production
   taxes          18      6     12     11     16      8     17     15
---------------------------------------------------------------------
  Total cash
   costs         215    228    291    192    232    217    167    177
  Amortization and
   reclamation    51     68    122    123     66     85     48     68
---------------------------------------------------------------------
Total production
 costs          $266 $296 $413 $315 $298 $302 $215 $245
---------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)   $8 $2 $8 $10 $16 $12 $1 $6
---------------------------------------------------------------------


Six months
ended June 30,  2003   2002   2003   2002   2003   2002   2003   2002
---------------------------------------------------------------------
Tons mined
 (thousands)  72,831 73,319    785    783 73,616 74,102 14,713 16,230
Tons
 processed
 (thousands)   5,163  4,920    789    767  5,952  5,687 14,949 16,452
Average grade
 (ounces per
 ton)          0.175  0.163  0.381  0.427  0.203  0.198  0.019  0.019
Recovery rate
 (percent)     81.7%  83.7%  87.1%  91.0%  83.0%  85.8%    N/A    N/A
---------------------------------------------------------------------
Production
 (thousands of
 ounces)         740    670    261    298  1,001    968    209    189

Production costs
 per ounce
  Cash operating
   costs        $220 $217 $227 $191 $222 $210 $150 $170
  Royalties and
   production
   taxes          18      6     20     10     18      7     17     13
---------------------------------------------------------------------
  Total cash
   costs         238    223    247    201    240    217    167    183
  Amortization and
   reclamation    55     62    119    116     73     78     52     68
---------------------------------------------------------------------
Total production
 costs          $293 $285 $366 $317 $313 $295 $219 $251
---------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)  $14 $3 $14 $21 $28 $24 $2 $6
---------------------------------------------------------------------


Mine Statistics

                                        AUSTRALIA
---------------------------------------------------------------------
Three months        Plutonic        Darlot      Lawlers    Kalgoorlie
ended June 30,   2003   2002   2003   2002   2003  2002   2003   2002
---------------------------------------------------------------------
Tons mined
 (thousands)    3,921  3,691    217    214    209   628 11,857 11,043
Tons
 processed
 (thousands)      733    821    224    205    220   175  1,807  1,818
Average grade
 (ounces per
 ton)           0.121  0.105  0.172  0.169  0.122 0.166  0.075  0.058
Recovery rate
 (percent)      89.3%  91.1%  96.5%  96.7%  96.2% 97.6%  86.1%  83.3%
---------------------------------------------------------------------
Production
 (thousands of
 ounces)           79     80     37     32     26    29    117     81

Production costs
 per ounce
  Cash operating
   costs         $198 $167 $168 $171 $221 $165 $203 $205
  Royalties and
   production
   taxes            9      7      7      8      7     7      9      8
---------------------------------------------------------------------
  Total cash
   costs          207    174    175    179    228   172    212    213
  Amortization and
   reclamation     16     40     47     48     42    41     51     62
---------------------------------------------------------------------
Total production
 costs           $223 $214 $222 $227 $270 $213 $263 $275
---------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)   $20 $5 $1 $1 $1 $1 $1 $1
---------------------------------------------------------------------


Six months
ended June 30,   2003   2002   2003   2002   2003  2002   2003   2002
---------------------------------------------------------------------
Tons mined
 (thousands)    7,259  6,757    438    414    744   786 23,052 22,690
Tons
 processed
 (thousands)    1,511  1,685    434    413    406   357  3,444  3,564
Average grade
 (ounces per
 ton)           0.111  0.095  0.190  0.174  0.120 0.156  0.071  0.060
Recovery rate
 (percent)      89.1%  90.1%  97.1%  97.0%  96.1% 96.9%  85.9%  83.7%
---------------------------------------------------------------------
Production
 (thousands of
 ounces)          149    142     80     68     47    55    211    168

Production costs
 per ounce
  Cash operating
   costs         $191 $172 $150 $164 $256 $172 $206 $208
  Royalties and
   production
   taxes            8      8      8      7      8     8      9      8
---------------------------------------------------------------------
  Total cash
   costs          199    180    158    171    264   180    215    216
  Amortization and
   reclamation     19     37     48     48     33    41     52     61
---------------------------------------------------------------------
Total production
 costs           $218 $217 $206 $219 $297 $221 $267 $277
---------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)   $25 $8 $3 $2 $10 $2 $2 $3
---------------------------------------------------------------------


Mine Statistics

                                        CANADA
---------------------------------------------------------------------
Three months                    Hemlo     Eskay Creek  Holt-McDermott
ended June 30,           2003    2002    2003    2002     2003   2002
---------------------------------------------------------------------
Tons mined (thousands)  1,099   1,030      69      63      139    131
Tons processed
 (thousands)              474     487      74      63      137    131
Average grade (ounces
 per ton)               0.137   0.134   1.427   1.612    0.164  0.172
Recovery rate (percent) 94.5%   94.1%   93.8%   93.6%    94.3%  94.7%
---------------------------------------------------------------------
Production (thousands
 of ounces)                62      62      97      92       21     21

Production costs per
 ounce
  Cash operating costs   $236 $241 $99 $28 $271 $190
  Royalties and
   production taxes         9       8       3       4        -      1
---------------------------------------------------------------------
  Total cash costs        245     249     102      32      271    191
  Amortization and
   reclamation             44      40     122     129      123     54
---------------------------------------------------------------------
Total production costs   $289 $289 $224 $161 $394 $245
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)            $2 $2 $1 $1       $-     $1
---------------------------------------------------------------------


Six months
ended June 30,           2003    2002    2003    2002     2003   2002
---------------------------------------------------------------------
Tons mined (thousands)  2,089   2,017     137     125      283    259
Tons processed
 (thousands)              929     958     140     125      276    259
Average grade (ounces
 per ton)               0.148   0.136   1.432   1.524    0.162  0.176
Recovery rate (percent) 94.7%   93.8%   93.6%   93.2%    94.6%  94.7%
---------------------------------------------------------------------
Production (thousands
 of ounces)               130     123     181     177       42     43

Production costs per
 ounce
  Cash operating costs   $228 $234 $83 $28 $275 $163
  Royalties and
   production taxes         8       7       3       4        1      -
---------------------------------------------------------------------
  Total cash costs        236     241      86      32      276    163
  Amortization and
   reclamation             40      41     128     128      123     94
---------------------------------------------------------------------
Total production costs   $276 $282 $214 $160 $399 $257
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)            $5 $3 $3 $3       $-     $3
---------------------------------------------------------------------


Mine Statistics

                                     PERU TANZANIA
---------------------------------------------------------------------
                                        Pierina            Bulyanhulu
Three months ended June 30,     2003       2002       2003       2002
---------------------------------------------------------------------
Tons mined (thousands)         9,784      8,081        231        249
Tons processed (thousands)     3,987      3,418        247        273
Average grade (ounces per ton) 0.078      0.076      0.352      0.358
Recovery rate (percent)            -          -      88.3%      85.9%
---------------------------------------------------------------------
Production (thousands of
 ounces)                         260        183         77         84

Production costs per ounce
  Cash operating costs           $78 $80 $223 $195
  Royalties and production taxes   -          -         10          8
---------------------------------------------------------------------
  Total cash costs                78         80        233        203
  Amortization and reclamation   182        189        117         94
---------------------------------------------------------------------
Total production costs          $260 $269 $350 $297
---------------------------------------------------------------------
Capital expenditures (US$
 millions)                        $4 $1 $9 $16
---------------------------------------------------------------------


Six months ended June 30,       2003       2002       2003       2002
---------------------------------------------------------------------
Tons mined (thousands)        18,328     15,243        472        443
Tons processed (thousands)     7,609      6,845        506        535
Average grade (ounces per ton) 0.080      0.071      0.376      0.369
Recovery rate (percent)            -          -      87.7%      85.6%
---------------------------------------------------------------------
Production (thousands of
 ounces)                         491        398        167        169

Production costs per ounce
  Cash operating costs           $81 $72 $201 $197
  Royalties and production taxes   -          -         10          8
---------------------------------------------------------------------
  Total cash costs                81         72        211        205
  Amortization and reclamation   182        190        117         94
---------------------------------------------------------------------
Total production costs          $263 $262 $328 $299
---------------------------------------------------------------------
Capital expenditures (US$
 millions)                        $5 $2 $19 $32
---------------------------------------------------------------------


CORPORATE OFFICE                TRANSFER AGENTS AND REGISTRARS
Barrick Gold Corporation        CIBC Mellon Trust Company
BCE Place, Canada Trust Tower,  P.O. Box 7010, Adelaide Street
 Suite 3700                      Postal Station
161 Bay Street, P.O. Box 212    Toronto, Ontario M5C 2W9
Toronto, Canada M5J 2S1         Tel: (416) 643-5500
Tel: (416) 861-9911             Toll-free throughout North
Fax: (416) 861-0727              America: 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
The New York Stock Exchange      Center
The London Stock Exchange       Ridgefield Park, New Jersey 07660
The Swiss Stock Exchange        Tel: (201) 329-8660
La Bourse de Paris              Toll-free within the United
                                 States: 1-800-589-9836
RECENT RESEARCH REPORTS         Web site: www.mellon-investor.com
Bear Stearns
BMO Nesbitt Burns               INVESTOR CONTACTS:  MEDIA CONTACT:
Canaccord                       Richard Young Vincent Borg
CIBC World Markets              Vice President,     Vice President,
Citigroup Smith Barney          Investor Relations  Corporate
Credit Suisse First Boston                           Communications
Griffiths McBurney & Partners   Tel:                Tel:
Goldman Sachs                   (416) 307-7431      (416) 307-7477
HSBC                            Email:              Email:
JP Morgan                       ryoung@barrick.com vborg@barrick.com
Merrill Lynch
National Bank                   Kathy Sipos
Prudential Financial            Manager, Investor Relations
Research Capital                Tel: (416) 307-7441
RBC Capital Markets             Email: ksipos@barrick.com
Scotia Capital
UBS Warburg                     Sandra Grabell
Westwind Partners               Investor Relations Specialist
                                Tel: (416) 307-7440
                                Email: sgrabell@barrick.com 

Certain statements included herein, including those regarding production and costs and other statements that express management's expectations or estimates of our future performance, constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule", and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management are inherently subject to significant business, economic and competitive uncertainties and contingencies. In particular, our Management's Discussion and Analysis includes many such forward-looking statements and we caution you that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from our estimated future results, performance or achievements expressed or implied by those forward-looking statements and our forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold or certain other commodities (such as silver, copper, diesel fuel and electricity) and currencies; changes in interest rates or gold lease rates that could impact realized prices under our forward sales program; legislative, political or economic developments in the jurisdictions in which Barrick carries on business; operating or technical difficulties in connection with mining or development activities; the speculative nature of gold exploration and development, including the risks of diminishing quantities or grades of reserves; and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in Barrick's most recent Form 40-F/Annual Information on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

Barrick expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise.

    CONTACT: Barrick Gold Corporation Vincent Borg, 416-307-7477
             Fax: 416-861-1509
             media@barrick.com

    SOURCE: Barrick Gold Corporation 

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Gold  $ 1,256.40 -0.07 -0.01% Volume: December 14, 2017
ABX NYSE  $ 14.11 +0.47 +3.45% Volume: 15,859,197 December 13, 2017
ABX TSX  $ 18.13 +0.58 +3.31% Volume: 4,224,021 December 13, 2017
Gold  $ 1,256.40 -0.07 -0.01% Volume: December 14, 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

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