news-details

Barrick Earns $77 Million - $0.14 per share - in Fourth Quarter; Achieves 2003 Production and Cost Targets

February 13, 2004
    TORONTO--(BUSINESS WIRE)--Feb. 12, 2004--

    FOURTH QUARTER REPORT 2003

    Based on US GAAP and expressed in US dollars

    Highlights

    --  Fourth quarter net income was $77 million, or $0.14 per share,
        and full year net income was $200 million, or $0.37 per share

    --  Fourth quarter production was 1.3 million ounces of gold at a
        total cash cost of $199(1) per ounce. Full year production was
        5.51 million ounces at a total cash cost of $189(1) per ounce,
        the lowest cash cost of the senior producers

    --  Excluding the $86 million Inmet settlement, fourth quarter and
        full year cash flow from operations in 2003 exceeded 2002

    --  Reserves as at December 31, 2003 stood at 86 million ounces(2)
        based on a $325 gold price, amongst the largest in the
        industry

    --  The Company announced a No-Hedge Policy for gold with a goal
        of reducing the hedge position to zero over time. The position
        was reduced by 600,000 ounces in the quarter and 2.6 million
        ounces for the year.

    --  Veladero's construction commenced; Alto Chicama's
        Environmental Impact Study (EIS) was submitted and public
        hearings were completed in the fourth quarter 2003, with
        approval anticipated in the second quarter of 2004; Tulawaka
        received development approval and is now under construction

    --  The Company announced today that it has appointed Mr. Peter
        Godsoe, Chairman of Scotiabank, as an independent member of
        the Board of Directors

    --  The Company announced today that Barrick and Falconbridge
        agreed to partner on the Kabanga Nickel Project in Tanzania

(1) For an explanation of non-GAAP performance measures refer to pages 17-18 of Management's Discussion and Analysis.

(2) Calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, Alto Chicama is classified as mineralized material. For additional information on reserves see the tables and related footnotes on pages 48-51.

Barrick Gold Corporation today reported earnings of $77 million ($0.14 per share) and operating cash flow of $134 million ($220 million prior to the Inmet settlement of $86 million) for fourth quarter 2003, compared to earnings of $54 million ($0.10 per share) and operating cash flow of $195 million in the year earlier period. Higher earnings for the fourth quarter 2003 compared to the same period in 2002 reflect a $51 per ounce higher realized gold price and a $60 million increase in non-hedge derivative gains (2003 - $46million gain versus 2002 $14 million loss). These were partly offset by higher cash operating costs, provisions of $14 million for the Inmet settlement and $10 million for reclamation costs and an $18 million lower income tax recovery. Lower operating cash flow in the current quarter and the full year primarily relates to the payment of $86 million on the Inmet settlement. Excluding the Inmet settlement, fourth quarter and full year cash flow from operations was higher in 2003 than 2002. For 2003, net income was $200 million ($0.37 per share) and operating cash flow was $521 million ($607 million prior to the Inmet settlement), compared to net income of $193 million ($0.36 per share) and operating cash flow of $589 million in the year earlier period.

"Overall, our portfolio of properties performed well - we had a solid operating performance in 2003 and met our guidance," said Greg Wilkins, President and Chief Executive Officer. "Our focus for 2004 will be building our new mines and growing our production profile."

PRODUCTION AND COSTS

In fourth quarter 2003, Barrick produced 1.3 million ounces of gold at a total cash cost of $199 per ounce, compared to 1.6 million ounces at $174 per ounce, for the prior year quarter. Lower production and higher costs were primarily attributable to expected lower grades and higher energy costs, as well as higher royalties and other costs related to the rising spot gold price.

For the year, the Company produced 5.51 million ounces of gold at a total cash cost of $189 per ounce, achieving the Company's overall guidance for the year, even though cash costs were impacted by rising gold prices which increased royalty and mining tax payments. Higher production and lower costs at Betze-Post, Kalgoorlie and Pierina more than offset lower production and higher costs at Meikle and Bulyanhulu.

In 2002 the Company produced 5.7 million ounces at a total cash cost of $177 per ounce. Lower production in 2003 was due largely to the closure of five mines during 2002.

RESERVES

At year-end the Company had proven and probable reserves of 86 million ounces of gold based on a $325 gold price, after producing 5.51 million ounces, (6.5 million ounces in-situ) compared to reserves of 86.9 million ounces in 2002, virtually replacing 2003 production. Using a $375 gold price for sensitivity purposes, the reserves at December 31, 2003 would be about 92 million ounces.

Two of the Company's deposits have significant silver resources. Pascua-Lama has one of the largest silver resources in the world, with 584 million ounces in-situ while Eskay Creek has 43 million ounces.

GOLD HEDGE POSITION REDUCED

In fourth quarter 2003, the Company announced that it had adopted a No-Hedge Policy on its gold production. Under the new policy, Barrick will not add any new gold hedge contracts. The Company is committed to reducing its hedge book to zero over time. "While the policy of hedging a portion of our gold production has contributed to our balance sheet strength," said Mr. Wilkins, "we no longer consider hedging to be necessary in today's business climate."

During the quarter, the Company reduced its hedge position by 600,000 ounces, by delivering a portion of production against hedge contracts at a price that approximated the prevailing spot price. For fourth quarter 2003, the Company averaged a realized price of $394 per ounce, $2 per ounce higher than the average spot price. For the year, Barrick realized an average price of $366 per ounce compared to the average spot price of $363 per ounce. The 2003 year-end hedge position was 15.5 million ounces, down 2.6 million ounces, or 14%, from year-end 2002 (down 8.6 million ounces, or 36%, over the last two years). At December 31, 2003, the Company's hedge position represented 18% of its proven and probable reserves and 14% of its reserves and measured and indicated resources.

SHARE BUYBACK

Barrick repurchased 8.8 million of its common shares at an average purchase price of $17.56 per share, for a total cost of $154 million in 2003. The Company expects to continue its share buy-back program.

2004 OUTLOOK

As previously announced, the Company projects 2004 production to be between 4.9 - 5.0 million ounces at an average total cash cost of $205-$215 per ounce, as Pierina and Betze-Post mine lower grade ore, and higher expected spot gold prices continue to increase gold related costs. The Company plans to further reduce its hedge contracts in 2004 by a minimum of 1.5 million ounces, 300,000 of which has already been accomplished. While the Company's hedge contracts allow for full flexibility to deliver all of its production into the spot gold market, to achieve this target it may choose to deliver a portion of production against hedge contracts at prices below spot price.

Production and total cash costs in the first quarter 2004 are anticipated to be weaker than the remainder of the year due to the sequencing of the mining operations. For the year, amortization is expected to be about $480 - $490 million, administration expense is expected to be approximately $80 million and exploration, development and business development expense is expected to be approximately $110 million, with the possibility that positive results could lead to additional exploration spending. Capital expenditures for 2004 are anticipated to be approximately $770 million, as we advance the construction of our development projects.

DEVELOPMENT PROJECTS UPDATE

Barrick advanced on all projects in its mine development pipeline in fourth quarter 2003. "During 2003, we focused on detailed engineering and on delineation of our development projects as we readied ourselves for building our four new mines," said Peter Kinver, Chief Operating Officer. "These projects will provide additional production and lower cash costs for years to come."

At Veladero in Argentina, the Environmental Impact Statement (EIS) approval was received in fourth quarter 2003 and construction commenced. Road work and pre-strip activities are currently underway as well as construction of the valley fill heap leach, truck shops, assay lab, and camp facilities. There are currently over 700 construction workers on-site, with peak employment expected to reach approximately 1,500 comprising 500 permanent staff and 1,000 construction workers. Veladero is expected to commence production in 2005. As mineralization was classified as a reserve for U.S. reporting purposes as of October 1, 2003, development costs at Veladero are now being capitalized. Significant progress was made on advancing project financing for Veladero in 2003. It is anticipated that the financing will be completed in 2004.

The EIS for Alto Chicama in Peru was submitted at the end of the third quarter 2003. Public hearings were held during the fourth quarter 2003, and approval anticipated in second quarter 2004.

As 2003 ended, the Company received development approval for its Tulawaka project in Tanzania. Construction on this 70% owned joint venture commenced in the fourth quarter 2003, with projected average annual production of 125,000 ounces at a total cash cost of $175 per ounce on a 100% basis. Production is expected to begin in first quarter 2005. Total capital approved for project development is $49 million.

At the Company's Cowal property in Australia, construction of mine infrastructure commenced in January 2004. Mine development is anticipated during the first quarter, leading to commercial production in early 2006.

At Pascua-Lama in Chile/Argentina, work continues on the engineering optimization of the project, with a production decision expected in early second quarter 2004.

EXPLORATION UPDATE

During fourth quarter 2003, Barrick was actively exploring 44 projects in nine countries. Drilling was carried out on 19 projects during the quarter. "Our investment in exploration over the past few years will continue to yield results going forward," said Alex Davidson, Executive Vice President, Exploration. "Our large land position provides us with opportunities in key prospective districts."

In North America, an underground drill program was completed at the end of December on the Rossi property in Nevada (60% joint venture with Meridian Gold). The objective of the program was to better define the Storm resource and an updated resource calculation is expected in the first half of 2004. A drill program at Goldstrike was focused on near term resource additions on targets north of the Betze-Post pit. The results from the program were very positive and drilling will continue during the first half of 2004. The drill program at Gold Hill, located north of Round Mountain, confirmed and refined the geological model, and an updated resource estimate will be completed in the first half of 2004. At the Eskay Creek property in northern British Columbia, results from the drill program completed in third quarter 2003 highlighted the potential of the 22 Zone, located 2 kilometres south of the mine. A winter drill program is planned to test for mineralization along strike and at depth.

In South America, drill programs were also completed on properties in the Alto Chicama district where the Company has an excellent portfolio of prospects as well as in Chile and southern Argentina. Results are being evaluated and follow up work is planned in 2004. Early stage exploration carried out in Peru continues to identify and prioritize targets for detailed follow up.

During fourth quarter 2003, Barrick entered into a strategic relationship with QGX Limited which has prospective exploration properties in Mongolia.

NEW DEVELOPMENTS

On January 28, 2004, Barrick announced that it agreed to a share purchase and strategic relationship in Russia with Highland Gold Mining, based in London. In total, Barrick has now invested cash of US$84 million for a total stake of 17% of Highland. The Highland partnership will give Barrick the right, but not the obligation, to participate on an exclusive basis for up to 50% on any acquisition made by Highland Gold in Russia. Highland holds similar rights for any acquisition made by Barrick in certain regions in Russia. "The Highland transaction represents an important next step in the development of Barrick's strategy in Russia - one of the most prospective gold regions anywhere in the world," commented Mr. Wilkins.

On February 12, 2004 Barrick and Falconbridge have signed a Letter of Intent to negotiate Definitive Agreements regarding Barrick's Kabanga Nickel Project.

The Kabanga Nickel Project was acquired by Barrick in the Sutton Resources transaction in 1999. Since the acquisition, Barrick has significantly enhanced the value of the Project by increasing the known resource estimate at Kabanga Main and discovering the adjacent MNB deposit. The Project is located in northwestern Tanzania, approximately 385 kilometres west of the Bulyanhulu gold mine and 100 kilometres northwest of the Tulawaka gold project, which is currently under construction. Kabanga has a current resource of 26.4 million tonnes grading 2.6% nickel for approximately 700,000 tonnes of contained nickel.

The Letter of Intent provides that Falconbridge can earn a 50% interest in Kabanga by:

    --  Meeting the next $45 million of expenditures on the execution
        of a well defined Work Plan over a period not exceeding 27
        months;

    --  Completing the Work Plan and completing a Bankable Feasibility
        Study within 3 years of reaching definitive agreements; and

    --  Making certain other payments totaling US$13.5 million to
        Barrick upon achieving certain milestones.

    CORPORATE GOVERNANCE GUIDELINES

Following on the September 2003 appointment of Mr. Gustavo Cisneros, Chairman of the Cisneros Group of Companies, as an independent director to Barrick's Board, the Company announced today that it was pleased to appoint Mr. Peter Godsoe, Chairman of Scotiabank, as an independent Director to the Board. "Our Board will be strengthened by his breadth of business experience and knowledge of international capital markets," said Peter Munk, Founder and Chairman.

Barrick Gold Corporation is building new low-cost, long-life mines in highly prospective gold mining districts around the globe. It has the lowest cash costs among major gold producers and the only A-rated balance sheet with a cash position of nearly $1 billion. Barrick's shares are traded under the ticker symbol ABX on the Toronto, New York, London and Swiss stock exchanges and the Paris Bourse.



Key Statistics
(in United States dollars, US GAAP basis)
                               Three months ended Twelve months ended
                                         Dec. 31,            Dec. 31,
---------------------------------------------------------------------
(Unaudited)                       2003       2002       2003     2002
---------------------------------------------------------------------

Operating Results
Gold production (thousands
 of ounces)                      1,301      1,596      5,510    5,695
Gold sold (thousands of
 ounces)                         1,362      1,540      5,554    5,805

Per ounce data
  Average spot gold price         $392       $323       $363     $310
  Average realized gold price      394        343        366      339
  Cash operating costs(3)          186        166        177      170
  Total cash costs(1) (3)          199        174        189      177
  Total production costs(3)        292        267        279      268
---------------------------------------------------------------------

Financial Results (millions)
Gold sales                        $536       $526     $2,035   $1,967
Net income                          77         54        200      193
Operating cash flow                134        195        521      589
Operating cash flow
 excluding Inmet settlement        220        195        607      589

Per share data (dollars)
  Net income (basic and
   diluted)                       0.14       0.10       0.37     0.36
  Operating cash flow             0.26       0.36       0.97     1.09
  Operating cash flow
   excluding Inmet settlement     0.42       0.36       1.13     1.09
Common shares outstanding
 (as at Dec. 31) (millions)(2)     535        542        535      542
---------------------------------------------------------------------

                                 As at      As at
                              Dec. 31,   Dec. 31,
---------------------------------------------------------------------
                                  2003       2002
---------------------------------------------------------------------

Financial Position (millions)
Cash and equivalents              $970     $1,044
Working capital                  1,015        839
Long-term debt                     719        761
Shareholders' equity             3,494      3,334
---------------------------------------------------------------------

(1) Comprises cash operating costs, royalties and production taxes.
(2) Includes shares issuable upon exchange of BGI (Barrick Gold
    Inc.), formerly Homestake Canada Inc., exchangeable shares.
(3) For an explanation of non-GAAP performance measures refer to
    pages 16-18 of Management's Discussion and Analysis.


Production and Cost Summary
                                     Production (attributable ounces)
---------------------------------------------------------------------
                                 3 months ended       12 months ended
                                         12/31,                12/31,
---------------------------------------------------------------------
(Unaudited)                      2003      2002       2003       2002
---------------------------------------------------------------------
North America
  Open Pit                    324,951   406,224  1,559,461  1,409,985
  Underground                 147,199   192,631    551,664    640,336
---------------------------------------------------------------------
  Goldstrike Property Total   472,150   598,855  2,111,125  2,050,321
  Eskay Creek                  83,387    96,954    352,070    358,718
  Round Mountain               91,059    88,614    392,649    377,747
  Hemlo                        64,930    83,179    267,888    269,057
  Holt-McDermott               23,203    21,502     89,515     83,577
  Marigold                     12,953    11,086     47,396     27,422
---------------------------------------------------------------------
                              747,682   900,190  3,260,643  3,166,842
---------------------------------------------------------------------
South America
  Pierina                     205,852   281,188    911,723    898,228
---------------------------------------------------------------------
Australia/Africa
  Plutonic                     88,233    84,018    333,947    307,377
  Darlot                       37,336    40,061    154,977    145,443
  Lawlers                      27,355    28,571     99,223    113,291
  Kalgoorlie                  115,498    98,356    436,098    360,025
---------------------------------------------------------------------
                              268,422   251,006  1,024,245    926,136
  Bulyanhulu                   78,737   100,776    313,551    356,319
---------------------------------------------------------------------
                              347,159   351,782  1,337,796  1,282,455
---------------------------------------------------------------------
Other/Mines closed in 2002          -    62,357          -    347,352
---------------------------------------------------------------------
Total                       1,300,693 1,595,517  5,510,162  5,694,877
---------------------------------------------------------------------

                                        Total Cash Costs (US$/oz) (1)
---------------------------------------------------------------------
                                   3 months ended     12 months ended
                                           12/31,              12/31,
---------------------------------------------------------------------
(Unaudited)                       2003       2002      2003      2002
---------------------------------------------------------------------
North America
  Open Pit                       $ 250      $ 220     $ 233     $ 228
  Underground                      261        184       253       198
---------------------------------------------------------------------
  Goldstrike Property Total        253        209       238       218
  Eskay Creek                       20         51        52        40
  Round Mountain                   190        212       173       187
  Hemlo                            227        184       226       224
  Holt-McDermott                   210        193       239       173
  Marigold                         187        144       171       187
---------------------------------------------------------------------
                                   219        182       209       193
---------------------------------------------------------------------
South America
  Pierina                           89         95        83        80
---------------------------------------------------------------------
Australia/Africa
  Plutonic                         196        187       193       184
  Darlot                           182        163       164       168
  Lawlers                          268        188       249       179
  Kalgoorlie                       215        231       209       222
---------------------------------------------------------------------
                                   208        200       200       196
  Bulyanhulu                       316        185       246       198
---------------------------------------------------------------------
                                   230        195       210       196
---------------------------------------------------------------------
Other/Mines closed in 2002           -        199         -       189
---------------------------------------------------------------------
Total                            $ 199      $ 174     $ 189     $ 177
---------------------------------------------------------------------


                                  Total Production Costs (US$/oz) (1)
---------------------------------------------------------------------
                                   3 months ended     12 months ended
                                           12/31,              12/31,
---------------------------------------------------------------------
(Unaudited)                       2003       2002      2003      2002
---------------------------------------------------------------------
  Direct mining costs at
   market foreign exchange
   rates                          $225       $185      $210      $191
  Gains realized on currency
   hedge contracts                (18)        (1)      (12)       (1)
  By-product credits              (21)       (18)      (21)      (20)
---------------------------------------------------------------------
Cash operating costs               186        166       177       170
  Royalties                         10          7         9         6
  Production taxes                   3          1         3         1
---------------------------------------------------------------------
Total cash costs                   199        174       189       177
  Amortization and
   reclamation                      93         93        90        91
---------------------------------------------------------------------
Total production costs            $292       $267      $279      $268
---------------------------------------------------------------------

(1) For an explanation of non-GAAP performance measures refer to
    pages 16-18 of Management's Discussion and Analysis.

Management's Discussion and Analysis of Financial and Operating Results

GOLD SALES

Revenue for fourth quarter 2003 was $536 million on gold sales of 1.36 million ounces, compared to $526 million in revenue on gold sales of 1.54 million ounces for the year earlier quarter. A $51 per ounce (15%) increase in the realized gold price due to higher spot gold prices more than offset the lower sales volumes. During the fourth quarter, spot gold prices ranged from a high of $416 to a low of $369 per ounce, averaging $392 per ounce. The Company realized an average of $394 per ounce during the quarter, as it delivered 600,000 ounces against gold hedge contracts, with the remainder at spot gold prices. The Company plans to further reduce its hedge contracts in 2004 by a minimum of 1.5 million ounces. While the Company's hedge contracts allow for full flexibility to deliver all of its production into the spot gold market, to achieve this target it may chose to deliver a portion of production against hedge contracts at prices below spot price.

The year-end gold hedge position declined to 15.5 million ounces, down 2.6 million ounces year over year. The fourth quarter reduction was accomplished by delivering a portion of production against hedge contracts that approximated the prevailing spot price. In keeping with the no-hedge policy, Barrick will continue to pursue opportunities to further reduce its hedge position with the objective of reducing it to zero over time. The position has been reduced by 8.6 million ounces or 36% over the past two years.

At year-end, the unrealized mark-to-market on the derivative instruments position, including gold and silver forward sales contracts, as well as currency and interest rate hedge programs, was negative $1.4 billion. This mark-to-market value represents the replacement value of these contracts based on current market levels, and does not represent an economic obligation for payment by Barrick. Barrick's obligations under its gold sales contracts are to deliver an agreed upon quantity of gold at a hedge price by the termination date on the contracts (2013 in most cases).

In accordance with hedge accounting rules, the positive mark-to-market value of $326 million relating to our currency and interest rate hedge programs is recorded as an asset on our balance sheet. The mark-to-market value of our normal sales gold and silver contracts is not recorded on the balance sheet, as accounting rules that govern these contracts do not require balance sheet recognition. Instead, in accordance with US GAAP, the economic impact of these sales contracts is reflected in the financial statements as Barrick physically delivers gold and silver under the contracts.

REVIEW OF OPERATIONS AND DEVELOPMENT PROJECTS

For the fourth quarter 2003, production of 1.3 million ounces and total cash cost of $199(1) per ounce were in line with plan. Operating performance for the year was also in line with guidance, with production of 5.51 million ounces at a total cash cost of $189(1) per ounce. As at December 31, 2003 reserves stood at 86 million ounces(2) at a $325 gold price. Using a $375 gold price for sensitivity purposes, the reserves at December 31, 2003 would be about 92 million ounces as these mines sequence through lower grade ore.

For 2004 we expect production of 4.9 to 5.0 million ounces at a total cash cost of $205 to $215 per ounce.

The decline in production and increase in costs is primarily attributed to Pierina and Betze-Post due to lower grades resulting from mine sequencing.

(1) For an explanation of non-GAAP performance measures refer to pages 17-18 of Management's Discussion and Analysis.

(2) Calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, Alto Chicama is classified as mineralized material. For additional information on reserves see the tables and related footnotes on pages 48-51.

NORTH AMERICAN REGION

Barrick's North American Region consists of seven mines: Betze-Post, Meikle, Round Mountain, Hemlo, Eskay Creek, Holt McDermott and Marigold.


    --  The region produced 748,000 ounces during the fourth quarter
        2003, 17% lower than the prior year quarter, at a total cash
        cost that was 16% higher than the prior year quarter.

    --  For the year, production and total cash costs were in line
        with plan at 3,300,000 ounces at a total cash cost of $209 per
        ounce.

    --  For 2004 the region is expected to produce in the range of
        2,950,000 to 3,020,000 ounces of gold at a total cash cost of
        $223 to $232 per ounce.


Goldstrike Property (Nevada)

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production
  Open Pit            324,951      406,224    1,559,461    1,409,985
  Underground         147,199      192,631      551,664      640,336
--------------------------------------------------------------------
Goldstrike Total      472,150      598,855    2,111,125    2,050,321
--------------------------------------------------------------------
Total cash cost/oz
  Open Pit              $ 250        $ 220        $ 233        $ 228
  Underground             261          184          253          198
--------------------------------------------------------------------
Goldstrike Total        $ 253        $ 210        $ 238        $ 218
--------------------------------------------------------------------
    Goldstrike Property - Open Pit

    --  Although the open pit met its production target for the year,
        production decreased 20% compared to the year earlier quarter
        as throughput declined 10% due to unscheduled downtime at the
        roaster and planned lower grades.

    --  Total cash costs during fourth quarter 2003 were 14% higher
        than the prior year. The higher cash costs were due to lower
        production and were partially offset by lower mining costs. As
        in previous quarters, a reduced fleet size, facilitated by
        in-pit dumping, has reduced overall mining costs. Costs were
        negatively affected by higher processing costs, as well as
        higher royalties and production taxes (up $7 per ounce over
        the year earlier quarter) due to the higher spot gold price.

    --  The higher processing costs were due to higher than expected
        acid consumption, coupled with a higher acid unit price. The
        higher acid consumption is attributable to the high carbonate
        material mined during the fourth quarter 2003.

    --  For the year, open pit produced 1,559,461 ounces, 60,000 more
        than the 2003 plan, at marginally higher costs. Higher than
        modeled tons and grade from the northeast and 8th west layback
        contributed to the positive production variance.

    --  Drilling at the Goldstrike-North Pit target, located
        immediately north of Betze-Post, has returned positive
        results, allowing an upgrade of the target to reserves.

    --  Underground infill drilling at Rossi located near Goldstrike
        has intersected significantly higher grades than previous
        drill programs. A total of 50 holes on two stations have been
        completed. This program has increased drill density to a 50
        foot by 50 foot spacing in the 49er Zone. A resource
        calculation will be completed during first quarter 2004.

    --  Production at Betze Post for 2004 is expected to be in the
        range of 1,340,000 to 1,360,000 ounces of gold at cash costs
        at $250 to $260 per ounce. The production and cost variances
        from 2003 are primarily due to planned lower grades.

    Goldstrike Property - Underground

    --  Underground production and costs continued to be affected by
        ground conditions at Rodeo and the mining of remnant blocks at
        Meikle. Ground support rehabilitation efforts are on-going and
        have proven successful in providing increases to Rodeo
        production during fourth quarter 2003.

    --  Remnant mining at Meikle was re-sequenced to maximize ore
        recovery and ground stability. Cash costs for the quarter were
        pushed higher by difficult ground conditions. As a result,
        labour, contract services, ground support material, and
        maintenance repairs were higher than plan. Royalties and taxes
        were above plan due to the increased gold price.

    --  For 2003, the mine produced 551,664 ounces, 68,000 ounces less
        than the 2003 plan, due to the ground conditions,
        infrastructure completion, and remnant constraints mentioned
        above. Total cash costs were $253 per ounce for the year.

    --  Production for 2004 is expected to be in the range of 590,000
        to 610,000 ounces of gold at cash costs of $245 to $255 per
        ounce. Higher production is a result of higher recoveries,
        while positive cost variances are due to decreased dependence
        on remnant stopes.


Eskay Creek (British Columbia)

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production             83,387       96,954      352,070      358,718
Total cash cost / oz     $ 20         $ 51         $ 52         $ 40
--------------------------------------------------------------------
    --  Fourth quarter 2003 production was 14% lower than the prior
        year quarter, due to a decrease in tons processed. Tons were
        down, as the mine focused on backfilling to eliminate a
        backlog affecting the availability of production stopes.

    --  Fourth quarter costs benefited from significantly higher
        silver prices, resulting in a $25 per ounce higher silver
        by-product credit over the prior year quarter.

    --  For the year, the mine produced 352,070 ounces at a total cash
        cost of $52 per ounce. Although the mine had a strong fourth
        quarter, it reduced its mining rate from plan in order to
        minimize dilution.

    --  An 18,000 metre drill program was completed at the end of
        September. The focus has been on the 22 Zone, located south of
        the mine. Results have been positive, with a 60,000 ton
        mineralized zone being identified. An additional drill program
        has been scheduled for first half 2004 to further define the
        mineralization.

    --  Production for 2004 is expected to be in the range of 300,000
        to 310,000 ounces of gold at cash costs of $100 to $105 per
        ounce. Lower production and higher costs are a result of
        mining at lower reserve grades and mining further away from
        primary facilities.

Round Mountain (Nevada) (50% share)

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production             91,059       88,614      392,649      377,747
Total cash cost / oz    $ 190        $ 212        $ 173        $ 187
--------------------------------------------------------------------
    --  Higher ounces produced during fourth quarter 2003 compared to
        the prior year period resulted from higher recoveries from the
        dedicated leach pad.

    --  The transformer failure in third quarter 2003 continues to
        limit the processing of higher-grade ore. Higher recoveries
        and an increase in the tons processed from the lower grade
        run-of-mine leach ore more than offset this event, allowing
        the mine to exceed planned production by 3% for the quarter. A
        new transformer will be in service early in first quarter
        2004; at that time, normal operations are expected to resume.

    --  For the year, the mine produced 392,649 ounces to Barrick's
        account. This represents another new annual production record
        for Round Mountain.

    --  Due to positive results from the nearby Gold Hill deposit, it
        will be upgraded to a resource. A 2004 underground exploration
        program is currently being planned to follow up on encouraging
        high grade drilling intercepts behind the existing ultimate
        pit wall.

    --  Production for 2004 is expected to be in the range of 355,000
        and 365,000 ounces of gold at total cash costs of $205 to $215
        per ounce. Production will decrease due to lower leach pad
        recoveries, while higher costs are a result of lower
        production and processing higher cost stockpiled ore.

Hemlo (Ontario) (50% share)

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production             64,930       83,179      267,888      269,057
Total cash cost / oz    $ 227        $ 184        $ 226        $ 224
--------------------------------------------------------------------
    --  Production decreased 22% in fourth quarter 2003 compared to
        the prior year period, due to a 25% reduction in grades.
        Higher grade stopes from 2002 were replaced with lower grade
        ore from the pit as a result of a plugged backfill line and
        poor ground conditions which complicated drilling and
        blasting. Backfill issues have now been resolved, while work
        continues on the drilling and blasting issues.

    --  Cash costs per ounce increased due to lower production and
        higher labour costs relating to the implementation of a number
        of organization changes, including a manpower rationalization
        program.

    --  For the year, the mine produced 267,888 ounces at a total cash
        cost of $226 per ounce to Barrick's account. Production and
        cash costs were in line with plan.

    --  Production for 2004 is expected to be in the range of 260,000
        and 270,000 ounces of gold at total cash costs of $215 to $225
        per ounce in line with 2003.

Holt-McDermott (Ontario)

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production             23,203       21,502       89,515       83,577
Total cash cost / oz    $ 210        $ 193        $ 239        $ 173
--------------------------------------------------------------------
    --  Fourth quarter 2003 production increased by 8% compared to the
        prior year quarter, due to improved grades and throughput (up
        3% and 6% respectively).

    --  Due to Holt's limited mine life, drilling and development
        costs are being expensed, pushing cash costs higher.

    --  As previously announced, the Mine is expected to cease
        operations by fourth quarter 2004. As a result, production is
        expected to decrease to approximately 50,000 ounces at a cash
        cost of $215 to $225 per ounce.

Other Properties

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production             12,953       73,443       47,396      374,774
Total cash cost / oz    $ 194        $ 188        $ 172        $ 189
--------------------------------------------------------------------
    --  The only mine remaining in this category in 2003 is our 33%
        interest in the Marigold Mine, which produced more gold than
        plan at cash costs in line with plan.

    --  Lower production for this category during fourth quarter 2003
        compared to the year earlier quarter relates to the closure of
        five mines in 2002 due to the depletion of reserves.

    --  Production for 2004 at Marigold is expected to be 55,000
        ounces to Barrick's account at cash costs between $170 and 180
        per ounce.

    SOUTH AMERICAN REGION

Barrick's South America Region consists of the Pierina mine and three significant development projects: Alto Chicama, Veladero and Pascua-Lama.


Pierina (Peru)

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production            205,852      281,188      911,723      898,228
Total cash cost / oz     $ 89         $ 95         $ 83         $ 80
--------------------------------------------------------------------
    --  For the year, Pierina met its production and cash costs
        targets.

    --  Fourth quarter 2003 production was 27% lower than the prior
        year quarter, while cash costs per ounce ran 6% higher.
        Variances to production and total cash costs are a result of
        planned lower grades offset by increased tons mined. Pierina
        is now mining in lower grade areas of the ore body.

    --  2003 is the Mine's last year of production in the
        900,000-ounce range, before stepping down to lower production
        levels, as mining moves to lower grade areas in the open pit
        in 2004. The Mine is expected to produce between 640,000 and
        645,000 ounces of gold with total cash costs of $95 to $100
        per ounce in 2004.

    Development Projects

    Alto Chicama (Peru)

The Company's Alto Chicama project remains on-schedule for a first gold pour in second half 2005.

The Environmental Impact Statement (EIS) for the Alto Chicama Project was submitted September 29, 2003. Public hearings were held during fourth quarter 2003, with approval expected in second quarter 2004.

During third quarter 2003, Barrick's Board of Directors approved the project for a $340 million investment. Average annual production is projected at 540,000 ounces, with a cash cost of $135 per ounce over the first decade.

Basic engineering is now complete on the Alto Chicama project, and detailed engineering commenced in fourth quarter 2003. Other project activities include:

    --  Access road construction, with completion expected in June
        2004.

    --  Power line construction will commence immediately upon receipt
        of EIS approval, anticipated in second quarter 2004.

    --  Purchasing activities and tendering will commence during
        second quarter 2004.

Exploration in the Alto Chicama district is focused on the area around the Lagunas Norte deposit. The Company has an excellent portfolio of prospects in the area and will be accelerating the exploration of these during 2004. Prospects within 5 kilometers of Lagunas Norte, which include Lagunas Sur and La Capilla, are showing encouraging results. Other targets are being evaluated.

Veladero (Argentina)

Veladero's EIS was approved in fourth quarter 2003 and full construction has commenced.

    Fourth quarter accomplishments at Veladero included:

    --  Equipment deliveries, as major support equipment arrived
        on-site. Pioneering of new roads is on schedule with the first
        20 operators working around-the-clock. Pre-strip activities
        also have begun.

    --  Valley fill heap leach construction has commenced; truck
        shops, assay lab, permanent camp and construction camp are in
        progress.

    --  The construction project has over 700 construction workers
        on-site. Peak employment will be 500 permanent staff and 1,000
        construction workers.

Veladero is expected to produce 530,000 ounces annually at an average total cash cost of $155 per ounce (subject to exchange rate fluctuations and applicable export duties). Production is expected in late 2005.

Costs for Veladero are being capitalized from October 1, 2003, as mineralization has now been classified as a reserve for U.S. reporting purposes.

Pascua-Lama (Chile/Argentina)

Work continues with the engineering optimization of the project, with a production decision expected in early second quarter 2004. The reserves at Pascua-Lama are just under 17 million ounces of gold. The project also contains 584 million ounces of contained silver making it one of the largest silver resources in the world.

AUSTRALIA/AFRICA REGION

Barrick's Australia/Africa Region consists of four mines in Australia: Kalgoorlie, Plutonic, Darlot, Lawlers plus Bulyanhulu in Africa. Significant development projects include Cowal in Australia and Tulawaka in Tanzania. Tulawaka is expected to commence production in early 2005 with Cowal coming on in late 2005.


    --  The region produced 347,000 ounces during the fourth quarter
        2003, in line with the prior year quarter at a total cash cost
        that was 18% higher than the prior year quarter.

    --  For the year, production was in line with plan at 1,300,000
        ounces and total cash costs were 6% higher than plan at $210
        per ounce.

    --  For 2004, the region is expected to produce in the range of
        1,310,000 and 1,335,000 ounces at a total cash cost of $219 to
        $233 per ounce.



Plutonic (Western Australia)

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production             88,233       84,018      333,947      307,377
Total cash cost / oz    $ 196        $ 187        $ 193        $ 184
--------------------------------------------------------------------
    --  Production for fourth quarter 2003 was 5% above the prior year
        period, reflecting both higher grades and mining rates from
        the underground. Cash costs were higher than the prior year
        period primarily due to a higher Australian dollar exchange
        rate.

    --  During the quarter, construction of the paste fill plant was
        completed. With the plant operating at design capacity, the
        expected benefits of improved ore recovery, reduced dilution
        and improved mining flexibility are being realized.

    --  For the full year, the mine produced 333,947 ounces, 39,000
        ounces higher than plan, driven by increased grades, higher
        throughput and improved recovery rates. Total cash costs were
        in line with plan.

    --  Production for 2004 is expected to be between 315,000 and
        320,000 ounces of gold at total cash costs of $185 to $195 per
        ounce. The production decrease is due to lower open pit ore
        tons being mined.

Darlot (Western Australia)

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production             37,336       40,061      154,977      145,443
Total cash cost / oz    $ 182        $ 163        $ 164        $ 168
--------------------------------------------------------------------
    --  Fourth quarter 2003 production was 7% lower than the prior
        year period, as a result of lower grades and reduced
        recoveries.

    --  Production and total cash costs for the full year were better
        than plan by 8% and 7% respectively.

    --  Production for 2004 is expected to be between 140,000 and
        145,000 ounces of gold at total cash costs of $190 to $205 per
        ounce due to lower grades processed. The increase in total
        cash costs is due to an increase in direct mining costs and
        lower production.

Lawlers (Western Australia)

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production             27,355       28,571       99,223      113,291
Total cash cost / oz    $ 268        $ 188        $ 249        $ 179
--------------------------------------------------------------------
    --  Fourth quarter 2003 production was 4% lower than the prior
        year period, due largely to lower head grades partially offset
        by higher throughput. The increased cash cost per ounce is
        primarily due to the increased throughput.

    --  The upgraded crusher improved throughput levels. As a result,
        unit processing costs have declined, as fixed processing costs
        are offset by additional tonnage combined with lower
        maintenance expense.

    --  For the full year, the mine produced 99,223 ounces, 12,000
        ounces lower than plan, driven largely by lower head grades.
        Total cash costs were 17% higher than plan due to lower
        production and higher processing costs.

    --  Production and total cash costs for 2004 are expected to be
        similar to 2003 - 100,000 to 105,000 ounces of gold at $250 to
        $265 per ounce.

Kalgoorlie (50% share)

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production            115,498       98,356      436,098      360,025
Total cash cost / oz    $ 215        $ 231        $ 209        $ 222
--------------------------------------------------------------------
    --  Kalgoorlie's strong performance continued into fourth quarter
        2003, as the mine produced 17% more ounces than the prior year
        period. Mining continues to capture high-grade pillars.

    --  Total cash costs were lower than the prior year period due to
        higher processing rates, grades and recoveries.

    --  For the year, the mine produced 436,098 ounces, 92,000 ounces
        above plan, due to the higher grades being achieved in the
        pit. Total cash costs were lower than plan as a result of the
        increased production.

    --  Production for 2004 is expected in the range of 395,000 and
        400,000 ounces of gold at total cash costs of $230 to $240 per
        ounce. The decrease in production is due to expected lower
        grades and planned maintenance on the SAG mill, while the
        increase in cash costs is due to lower production and
        marginally higher open pit costs.

Bulyanhulu (Tanzania)

--------------------------------------------------------------------
                       Q4 '03       Q4 '02         2003         2002
--------------------------------------------------------------------
Production             78,737      100,776      313,551      356,319
Total cash cost / oz    $ 316        $ 185        $ 246        $ 198
--------------------------------------------------------------------
    --  Fourth quarter 2003 production was 20% lower than the prior
        year period but in line with the stabilization plan announced
        at the beginning of the third quarter 2003.

    --  Cash costs for the quarter were higher than the prior year
        period, reflecting the reduced mining rate as the operation is
        being stabilized.

    --  With the successful completion of the flotation expansion and
        adjustments made through first half 2003, recovery rates are
        now averaging 88.5%.

    --  The mining rate for fourth quarter 2003 averaged 2,790 tons
        per day (tpd). This was a 7% increase over the stabilization
        plan rate.

    --  Results for the quarter are in line with the stabilization
        plan. For the full year the Mine produced 313,551 ounces at a
        total cash cost of $246 per ounce.

    --  Production for 2004 is expected in the range of 360,000 and
        365,000 ounces of gold at total cash costs of $240 to $260 per
        ounce. The increase in production is due to higher grades and
        increased mining productivity as a result of the stabilization
        plan.

    Development Projects

    Cowal (Australia)

At the Company's Cowal property in Australia, construction of mine infrastructure commenced in January 2004. Mine development is anticipated during the first quarter, leading to initial production in early 2006.

Tulawaka Project (Tanzania)

The Tulawaka project is under construction and reached several milestones during fourth quarter 2003:

    --  A Special Mining Licence was granted by the Minister of Energy
        and Minerals of Tanzania in November 2003.

    --  Forestry rights were obtained/acquired in late November;
        provisional water rights were obtained in December 2003.

    --  Development Agreement (fiscal stability) was finalized on
        December 29th, 2003.

    --  Barrick finalized a term sheet with our Joint Venture partner
        (30%), Exploration Minieres du Nord (MDN), to finance their
        portion of the Tulawaka development expenditures.

    --  Mobilization of contractors began in December 2003.

    --  North West zone exploration drilling has outlined a new quartz
        vein mineralized system approximately 15 kilometers northwest
        of the East Zone deposit.

    AMORTIZATION

Amortization totaled $132 million, or $93 per ounce1, for fourth quarter 2003, compared to $144 million or $88 per ounce1 in the year earlier quarter. The decrease in fourth quarter amortization was primarily due to a decrease in ounces sold compared to the prior year period as well as corporate amortization. For the full year, amortization was $522 million, or $90 per ounce, compared to $519 million, or $85 per ounce, for 2002. Amortization was higher on a per ounce basis and also in aggregate due to a change in the production mix across our portfolio of mines, which more than offset the effect of a decrease in ounces sold.

Two accounting policy changes affecting amortization took effect in first quarter 2003. First, FAS 143 changed the method for accounting for reclamation and closure costs. Amortization increased by $2 million for fourth quarter 2003 to reflect the amortization of the increase to property, plant and equipment from adopting the new standard at the beginning of 2003.

The second change relates to the amortization of underground development costs to exclude estimates of future underground development costs from the current period amortization. The new accounting policy for underground mines had minimal impact on our fourth quarter results. For the year-ended December 31, 2003, the effect of this change on amortization increased it by $1 million.

Amortization in 2004 is expected to be in the $480 million to $490 million range.

ADMINISTRATION

Fourth quarter 2003 administration costs were $20 million, an increase of $5 million over the year earlier period. The increase relates mainly to additional salaries, reorganization, legal insurance and regulatory costs.

Administration costs in 2004 are expected to be approximately $80 million.

EXPLORATION AND BUSINESS DEVELOPMENT

Exploration and business development expenses of $36 million in fourth quarter 2003 were $9 million higher than the year earlier quarter. In the fourth quarter 2003, the Company expensed $8 million on development activities at Alto Chicama, and $19 million on its exploration program with business development initiatives accounting for the remainder. In the prior year quarter, the Company expensed $17 million on development activities at Veladero and Alto Chicama, $8 million on its exploration program, and the remainder on business development initiatives. Compared to the prior year quarter, exploration costs were up because of higher spending in North America and Tanzania. Spending on development activities at Veladero was capitalized in fourth quarter 2003 as Veladero achieved SEC reserve status in October 2003. For the full year, the Company expensed $54 million on development activities (2002 - $49 million); and $62 million on its exploration program (2002 - $38 million); with the remainder on business development initiatives. The year over year increase reflects the higher volume of expensed development activities at Veladero and Alto Chicama, and the Company's continued focus and investment in its exploration program.

Looking forward to 2004, the Company expects exploration and business development expenses to be approximately $110 million, as it continues to advance the Alto Chicama project and to support its grassroots exploration program.

INMET LITIGATION

In the fourth quarter 2003, the Company recorded a charge to earnings of $14 million following a court ruling on the Inmet litigation which awarded pre-judgment interest to Inmet. This ruling was in addition to $72 million awarded to Inmet in 2001 (including post-judgment interest), and put the full amount of the accrued litigation paid to Inmet at $86 million.

OTHER INCOME/EXPENSE

For the fourth quarter 2003, interest and other income was $11 million, an increase of $10 million compared to the prior year period. In fourth quarter 2003, the Company realized $7 million in gains on various asset sales, including $3 million on various land parcels in the United States, and earned interest on its cash balances of $9 million. These amounts were offset by other expenses totaling $5 million, mainly relating to provisions against certain investments and royalties.

In the year earlier quarter, the Company earned $12 million of interest on its cash balances, offset by losses on the write-down of various assets.

Interest and other income in 2004 is expected to be approximately $35 million.

INTEREST EXPENSE

The Company incurred $12 million in interest costs in fourth quarter 2003, compared to $14 million in the year earlier quarter, relating primarily to its $500 million of debentures and the Bulyanhulu project financing. The increase in the amount of interest capitalized - $4 million in 2003 compared to $1 million in 2002 is due to the capitalization of interest on Veladero project costs, which began in October 2003. The Company's $80 million variable rate bonds as well as 70% of the Company's $500 million of debentures, which have been swapped from fixed to floating rates using interest rate swaps, bear interest at variable rates. The decrease in interest incurred for the fourth quarter 2003 reflects the impact of lower market interest rates on these variable rate debt obligations.

For the full year, interest incurred decreased from $59 million to $49 million mainly due to the decline in market interest rates. Interest capitalized increased from $2 million to $5 million due to amounts capitalized at Veladero in 2003. Interest expense in 2004 is expected to be about $27 million.

NON-HEDGE DERIVATIVE GAINS

In fourth quarter 2003, non-hedge derivative gains totaled $46 million, relating mainly to currency and gold lease rate contracts. The Company recorded unrealized gains of $21 million on its gold lease rate contracts, due mainly to lower gold lease rates. The Company also transferred unrealized gains of $9 million from OCI to earnings on its Australian dollar cash flow hedge contracts due to changes in the timing of the hedged items, which caused the termination of hedge accounting under FAS 133. The loss of $14 million in the prior year quarter relates primarily to losses on interest rate contracts, including lease rate swaps, due to movements in interest rates.

Forward prices under the Company's gold sales contracts are fixed and have no lease rate exposure. For a notional amount representing approximately one fifth of the contracts, the Company swapped out of the implied fixed lease rates into floating lease rates to take advantage of lower short-term lease rates. As gold prices, gold lease rates and interest rates decline/(increase), an unrealized mark-to-market gain/(loss) on these swap contracts occurs and is recorded in earnings each quarter. The Company expects to see ongoing fluctuations, which could be significant, in the fair value of these swap contracts in the future as gold prices, gold lease rates and interest rates change.

INCOME TAXES

In fourth quarter 2003, the Company recorded a net income tax credit of $4 million, compared to a net income tax credit of $22 million in the prior year quarter. The credit in fourth quarter 2003 primarily reflects a release of valuation allowances totaling $18 million of which $15 million was in Argentina, due to the higher spot gold price. Excluding this valuation allowance release, the underlying tax expense was $14 million. The credit for fourth quarter 2002 mainly reflects the net impact of tax planning completed in the period and the outcome of certain tax uncertainties. Income tax expense for the year-ended December 31, 2003 also includes a release of valuation allowances against deferred tax assets totaling $21 million in the second quarter 2003, resulting from actions completed during that quarter which provided assurance of the future realization of such assets. Excluding the total valuation allowance release of $39 million, the Company's effective tax rate for the year-ended December 31, 2003 was 20%, compared to 9% for the year earlier period. Compared to the Canadian federal tax rate of 38%, the Company's lower effective tax rate is mainly due to: the utilization of previously unrecognized tax loss carry forwards, which mitigated extra taxes that would have arisen from the increase in average spot gold prices from $310 per ounce in 2002 to $363 per ounce in 2003. Non-hedge derivative gains taxed in a low tax rate jurisdiction also contributed to a lower effective tax rate. The Company's tax rate rises in a higher spot gold price environment, as a larger portion of its earnings are taxed in higher tax-rate jurisdictions.

For 2004, excluding the effect of non-hedge derivative gains and any changes in tax valuation allowances, the Company expects its effective tax rate to be approximately 30%, assuming a spot gold price of $400 per ounce.

STATEMENT OF COMPREHENSIVE INCOME

Comprehensive income consists of net income or loss, that, together with certain other economic gains and losses, that are collectively described as "other comprehensive income" and are excluded from the income statement.

Comprehensive income totaled $162 million in fourth quarter 2003, compared to $65 million in the year earlier quarter. The primary reason for the increase in 2003 relates to unrealized gains on foreign currency cash flow hedge contracts and increases in the market value of available for sale securities over the past year.

LIQUIDITY AND CAPITAL RESOURCES

The Company believes its ability to generate substantial cash flow from operations is one of its fundamental financial strengths. Combined with its large cash balance of almost $1 billion at December 31, 2003 and $1 billion undrawn bank facility, the Company has sufficient access to capital resources to develop its internal projects and maintain a strong exploration program.

OPERATING ACTIVITIES

The Company generated operating cash flow of $134 million in fourth quarter 2003, compared to $195 million in the year earlier period. Operating cash flow in fourth quarter 2003 includes the payment of $86 million on the settlement of the Inmet litigation. Excluding this item, the Company generated higher operating cash flow in 2003 due to higher realized gold prices, and lower payments of reclamation and closure costs, offset by higher cash operating costs and higher income tax payments.

The Company's operating cash flow in 2003 was significantly affected by timing differences between cash payments of tax installments, which are based on 2002 taxable income, and accruals for current taxes based on expected 2003 taxable income. In fourth quarter 2003, this timing difference resulted in a net decrease to operating cash flow of $12 million. For the twelve-month period ended December 31, 2003, this timing difference resulted in a net decrease in operating cash flow of $57 million. As taxable income is significantly affected by changes in spot gold prices, any timing differences resulting from these changes could impact the Company's future operating cash flow.

INVESTING ACTIVITIES

The Company's principal investing activities in 2003 were for sustaining capital at its existing operating mines, new mine development and acquisitions of investments.

Capital expenditures for fourth quarter 2003 totaled $106 million, compared to $62 million for the year earlier period. The increase was primarily due to amounts spent at Veladero ($49 million), which began construction in the fourth quarter. Capital expenditures also included $17 million in Australia, mainly for underground development and new mining equipment, $18 million in North America for maintenance capital, and $9 million in Tanzania spent at the Bulyanhulu Mine on underground development. In South America, capital expenditures totaled $10 million (excluding Veladero) relating to Pierina and engineering and development work at Pascua-Lama.

The Company expects capital spending to increase substantially in 2004 to approximately $770 million, as it advances the construction of Veladero, Cowal and Alto Chicama.

In fourth quarter 2003, the Company spent $44 million to acquire a 10% interest in Highland Gold. Combined with a further investment of $40 million in early 2004, the Company raised its equity interest in Highland to approximately 17%. The Company also spent a further $9 million on investments in other junior mining companies.

FINANCING ACTIVITIES

During fourth quarter 2003, the Company's cash outflow on financing activities was $54 million, compared with $81 million in the year earlier period. The lower outflow in fourth quarter 2003 was largely due to proceeds from the exercise of stock options and the timing of payments on our long-term debt obligations.

NON-GAAP MEASURES

The Company has included cost per ounce data because it understands that certain investors use this information to determine the Company's ability to generate earnings as well as cash flow for use in investing and other activities. The Company has also included a measure of operating cash flow excluding the settlement of litigation. Litigation settlements are infrequent in occurrence, and therefore including this non-GAAP1 measure of performance provides a more comparable basis for assessing the company's cash flow performance in 2003 compared with 2002. The Company believes that conventional measures of performance prepared in accordance with GAAP do not fully illustrate the ability of its operating mines to generate cash flow. Non-GAAP measures do not have any standardized meaning prescribed by US GAAP, and therefore they may not be comparable to similar measures employed by other companies. The data are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Where cost per ounce data is computed by dividing GAAP operating cost components by ounces sold, the Company has not provided formal reconciliations of these statistics. Where GAAP operating costs are adjusted in computing cost per ounce data, the Company has provided reconciliations below.


Reconciliation of Total Cash Costs Per Ounce to
 Financial Statements(1)

---------------------------------------------------------------------
(In millions of United      Three months ended   Twelve months ended
 States dollars except            December 31,          December 31,
 per ounce amounts)            2003       2002       2003       2002
---------------------------------------------------------------------
Cost of sales and other
 operating expenses per
 financial statements         $ 310      $ 284    $ 1,134     $1,071
Reclamation costs/other        (39)       (16)       (83)       (43)
---------------------------------------------------------------------
Cost of sales and other
 operating expenses for
 per ounce calculation        $ 271       $268     $1,051     $1,028
---------------------------------------------------------------------
Ounces sold (thousands)       1,362      1,540      5,554      5,805
Total cash costs per ounce    $ 199      $ 174      $ 189      $ 177
---------------------------------------------------------------------

1. Total cash costs per ounce data are calculated in accordance with
   The Gold Institute Production Cost Standard (the "Standard").
   Adoption of the Standard is voluntary, and the data presented may
   not be comparable to data presented by other gold producers. Cash
   costs per ounce are derived from amounts included in the
   Statements of Income and include mine site operating costs such as
   mining, processing, administration, royalties and production
   taxes, but exclude amortization, reclamation costs, financing
   costs, and capital, development and exploration costs.


Reconciliation of Amortization and Reclamation Costs Per Ounce to
 Financial Statements
---------------------------------------------------------------------
(In millions of United      Three months ended   Twelve months ended
 States dollars except            December 31,          December 31,
 per ounce amounts)            2003       2002       2003       2002
---------------------------------------------------------------------
Amortization per financial
 statements                   $ 132      $ 144      $ 522      $ 519
Amortization recorded on
 property, plant and equipment
 not at operating mine sites    (4)       (10)       (25)       (26)
---------------------------------------------------------------------
Amortization for per ounce
 calculation                    128        134        497        493
Reclamation costs                 -          9          -         35
---------------------------------------------------------------------
Amortization and reclamation
 costs for per ounce
 calculation                  $ 128      $ 143      $ 497      $ 528
---------------------------------------------------------------------
Ounces sold (thousands)       1,362      1,540      5,554      5,805
Amortization costs per ounce   $ 93       $ 88       $ 90       $ 85
Amortization and reclamation
 costs per ounce               $ 93       $ 93       $ 90       $ 91
---------------------------------------------------------------------


Reconciliation of Operating Cash Flow Excluding The Inmet Settlement
---------------------------------------------------------------------
(In millions of United      Three months ended   Twelve months ended
 States dollars except per        December 31,          December 31,
 share amounts)                2003       2002       2003       2002
---------------------------------------------------------------------
Operating cash flow per
 financial statements         $ 134      $ 195      $ 521      $ 589
Inmet settlement                 86         --         86         --
---------------------------------------------------------------------
Operating cash flow
 excluding Inmet settlement    $220       $195       $607       $589

Per share data:

Operating cash flow           $0.26      $0.36      $0.97      $1.09

Operating cash flow
 excluding Inmet settlement   $0.42      $0.36      $1.13      $1.09
---------------------------------------------------------------------


FINANCIAL RISK MANAGEMENT

Forward Gold Sales Hedge Position (as of December 31, 2003)
---------------------------------------------------------------------
Gold ounces hedged        15.5 million ounces (or slightly less than
                          three years of expected future production)
---------------------------------------------------------------------
Current termination date  2013 in most cases
of gold sales contracts
---------------------------------------------------------------------
Average projected         $400/oz(1)
realizable gold sales
contract price at 2013
termination date.
---------------------------------------------------------------------
Delivery obligations       Barrick will deliver gold production from
                           operations against gold sales contracts by
                           the termination date (which is currently
                           2013 in most cases). However, Barrick may
                           choose to settle any gold sales contract
                           in advance of this termination date at any
                           time, at its discretion. Historically,
                           delivery has occurred in advance of the
                           contractual termination date. This means
                           Barrick can deliver gold at the higher of
                           spot prices, or prices under the hedge
                           contracts, until the termination date of
                           these contracts.
---------------------------------------------------------------------
Average forecast minimum   $309/oz(1),(2),(3)
realizable contract gold
sales price for delivery
of 100% of expected future
production into existing
sales contracts over the
next three years.
---------------------------------------------------------------------
Unrealized mark to market  $(1,725) billion(4)
loss at December 31, 2003
---------------------------------------------------------------------
"Capped price" variable    None
price gold sales
contracts outstanding
---------------------------------------------------------------------

1. Approximate estimated value based on current market US dollar
   interest rates and an average lease rate assumption of 1.5%
2. Accelerating gold deliveries could potentially lead to reduced
   contango that would otherwise have built-up over time.
3. Assumes delivery of 100% of expected future production against
   current gold sales contracts which would exhaust all remaining
   gold hedge positions.
4. At a spot gold price of $415 per ounce.

In all of the Company's master trading agreements, which govern the terms of its gold sales contracts with its 19 counterparties, the following applies:

    --  The counterparties do not have unilateral and discretionary
        'right to break' provisions.

    --  There are no credit downgrade provisions.

    --  The Company is not subject to any margin calls - regardless of
        the price of gold.

    --  The Company has the right to accelerate the delivery of gold
        at any time during the life of its contracts. This flexibility
        is demonstrated by the terms that allow it to deliver under
        hedge contracts at any time on two days notice, or keep these
        hedge contracts outstanding for as long as 15 years. This
        feature means that the Company can sell its gold at the market
        price or the hedge price, whichever is higher, to the
        termination date of our contracts (2013 in most cases).

The Company's trading agreements with its counterparties do provide for early close out of certain transactions in the event of a material negative change in its ability to produce gold for delivery under its hedging agreements, or a lack of gold market, and for customary events of default such as covenant breaches, insolvency or bankruptcy. The significant financial covenants are:

    --  Barrick must maintain a minimum consolidated net worth of at
        least US$2 billion - currently, it is US$3.5 billion.

    --  Barrick must maintain a maximum long-term debt to consolidated
        net worth ratio of 1.5:1 - currently, it is under 0.25 :1.

    --  Barrick's agreements exclude unrealized valuations in the
        calculation of consolidated net worth.

The foregoing information is a summary of certain aspects of the Company's forward sales program and is not intended to be comprehensive. For a more complete understanding, reference should be made to the Company's website (www.barrick.com).

The estimated fair value of all derivative instruments at December 31, 2003 was approximately $1.4 billion negative. The year-to-date change in the fair value of the Company's derivative instruments is detailed as follows: Mark-to-Market (FairValue) at December 31, 2003 of all derivative instruments:


Mark-to-Market (Fair Value) at September 30, 2003 of all derivative
instruments:

---------------------------------------------------------------------
Gold forward sales position                                 $ (1,725)
Silver forward sales position                                    (20)
Foreign currency position                                         288
Interest rate position                                             38
---------------------------------------------------------------------
All derivative instruments                                  $ (1,419)
---------------------------------------------------------------------


Continuity Schedule of the Change in the Mark-to-Market Value of our
gold forward sales position (millions)

---------------------------------------------------------------------
Fair value as at December 31, 2002 - Unrealized loss          $ (639)
Impact of change in spot price (from $347 per ounce to
 $415 per ounce)                                              (1,088)
Contango earned period to date                                    138
Impact of change in valuation inputs other than spot
 metal prices (e.g. interest rates and lease rates)              (66)
---------------------------------------------------------------------
Fair value as at December 31, 2003 - Unrealized loss       $  (1,725)
---------------------------------------------------------------------

The mark-to-market value of the gold contracts is based on a spot gold price of $415 per ounce and market rates for LIBOR and gold lease rates. The mark-to-market value of the contracts would approach zero (breakeven) at a spot gold price of approximately $303 per ounce, assuming all other variables are constant. The mark-to-market value represents the replacement value of these contracts based on current market levels, and does not represent an economic obligation for payment by Barrick. Barrick's obligations under the gold sales contracts are to deliver an agreed upon quantity of gold at a hedge price by the termination date on the contracts (2013 in most cases).


Consolidated Statements of Income

(in millions of United States dollars, except per share data,
 US GAAP basis)               Three months ended  Twelve months ended
                                        Dec. 31,             Dec. 31,
---------------------------------------------------------------------
(Unaudited)                       2003      2002        2003     2002
---------------------------------------------------------------------
Gold sales (note 13)              $536      $526      $2,035   $1,967
---------------------------------------------------------------------
Costs and expenses
Cost of sales and other operating
 expenses (1)(notes 3 and 13)      310       284       1,134    1,071
Amortization (note 13)             132       144         522      519
Administration                      20        15          83       64
Merger and related costs             -       (2)           -      (2)
Exploration and business
 development                        36        27         137      104
---------------------------------------------------------------------
                                   498       468       1,876    1,756
---------------------------------------------------------------------

Other income/expense (note 4)       11         1          52       29
Inmet litigation (note 12B)       (14)         -        (16)        -
Interest expense                   (8)      (13)        (44)     (57)
Non-hedge derivative gains
 (losses) (note 11E)                46      (14)          71      (6)
---------------------------------------------------------------------
Income before income taxes
 and other items                    73        32         222      177
Income tax (expense)
 recovery (note 5)                   4        22         (5)       16
---------------------------------------------------------------------
Income before cumulative effect of
 changes in accounting principles   77        54         217      193
Cumulative effect of changes in
 accounting principles (note 2)      -         -        (17)        -
---------------------------------------------------------------------
Net income                         $77       $54        $200     $193
---------------------------------------------------------------------

Earnings per share data (note 6):
Income before cumulative effect
 of changes in accounting
 principles
Basic and diluted                $0.14     $0.10       $0.40    $0.36
Net income
Basic and diluted                $0.14     $0.10       $0.37    $0.36
---------------------------------------------------------------------
1. Exclusive of amortization (note 3)

The accompanying notes are an integral part of these unaudited
interim consolidated financial statements


Consolidated Statements of Cash Flow

(in millions of United States dollars, US GAAP basis)
                              Three months ended  Twelve months ended
                                        Dec. 31,             Dec. 31,
---------------------------------------------------------------------
(Unaudited)                        2003     2002        2003     2002
---------------------------------------------------------------------
OPERATING ACTIVITIES
Net income for the period           $77      $54        $200     $193
Amortization (note 13)              132      144         522      519
Changes in capitalized
 mining costs                         3       18          37       29
Deferred income taxes (note 5)       16     (66)        (49)     (75)
Inmet litigation settlement
 (note 12B)                        (86)        -        (86)        -
Gains on sale of long-lived
 assets (note 4)                    (7)      (3)        (39)      (8)
Other items (note 14)               (1)       48        (64)     (69)
---------------------------------------------------------------------
Net cash provided by
 operating activities               134      195         521      589
---------------------------------------------------------------------
INVESTING ACTIVITIES
Property, plant and
 equipment
  Capital expenditures (note 13)  (106)     (62)       (322)    (228)
  Sales proceeds                     10        4          48       11
Purchase of investments            (53)        -        (55)        -
Short-term cash deposits              -        -           -      159
---------------------------------------------------------------------
Net cash used in investing
 activities                       (149)     (58)        (329)    (58)
---------------------------------------------------------------------
FINANCING ACTIVITIES
Capital stock
  Proceeds from shares issued on
   exercise of stock options         18        -          29       83
  Repurchased for cash (note 9A)      -        -       (154)        -
Long-term debt repayments          (14)     (22)        (23)     (25)
Dividends                          (58)     (59)       (118)    (119)
---------------------------------------------------------------------
Net cash used in financing
 activities                        (54)     (81)       (266)     (61)
---------------------------------------------------------------------
Increase (decrease) in cash
 and equivalents                   (69)       56        (74)      470
Cash and equivalents at
 beginning of period              1,039      988       1,044      574
---------------------------------------------------------------------
Cash and equivalents at end
 of period                         $970   $1,044        $970   $1,044
---------------------------------------------------------------------

The accompanying notes are an integral part of these unaudited
interim consolidated financial statements


Consolidated Balance Sheets

(in millions of United States dollars, US GAAP basis)
                                                  As at         As at
                                               Dec. 31,      Dec. 31,
(Unaudited)                                        2003          2002
---------------------------------------------------------------------
ASSETS
Current assets
  Cash and equivalents                             $970        $1,044
  Accounts receivable                                69            72
  Inventories (note 8)                              157           159
  Other current assets (note 8)                     169            47
---------------------------------------------------------------------
                                                  1,365         1,322
  Investments                                       127            41
  Property, plant and equipment                   3,131         3,311
  Capitalized mining costs, net                     235           272
  Unrealized fair value of derivative contracts     256            78
  Other assets                                      248           237
---------------------------------------------------------------------
Total assets                                     $5,362        $5,261
---------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable                                 $245          $213
  Other current liabilities                         105           270
---------------------------------------------------------------------
                                                    350           483
  Long-term debt                                    719           761
  Other long-term obligations                       569           528
  Deferred income tax liabilities                   230           155
---------------------------------------------------------------------
Total liabilities                                 1,868         1,927
---------------------------------------------------------------------
Shareholders' equity
  Capital stock                                   4,115         4,148
  Deficit                                         (694)         (689)
  Accumulated other comprehensive income
   (loss) (note 7)                                   73         (125)
---------------------------------------------------------------------
Total shareholders' equity                        3,494         3,334
---------------------------------------------------------------------
Total liabilities and shareholders' equity       $5,362        $5,261
---------------------------------------------------------------------

The accompanying notes are an integral part of these unaudited
interim consolidated financial statements


Consolidated Statements of Shareholders' Equity
and Comprehensive Income

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
(in millions of United States dollars, US GAAP
 basis) (Unaudited)                                    2003      2002
---------------------------------------------------------------------
Common shares (number in millions)
At January 1                                            542       536
  Issued for cash/on exercise
   of stock options                                       2         6
  Repurchased for cash (note 9A)                        (9)         -
---------------------------------------------------------------------
At Dec. 31                                              535       542
---------------------------------------------------------------------
Common shares
At January 1                                         $4,148    $4,062
  Issued for cash/on exercise of stock options           34        86
  Repurchased for cash (note 9A)                       (67)         -
---------------------------------------------------------------------
At Dec. 31                                           $4,115    $4,148
---------------------------------------------------------------------
Deficit
At January 1                                         $(689)    $(763)
Net income                                              200       193
Dividends                                             (118)     (119)
Repurchase of common shares(1)                         (87)         -
---------------------------------------------------------------------
At Dec. 31                                           $(694)    $(689)
---------------------------------------------------------------------
Accumulated other comprehensive income (note 7)         $73    $(125)
---------------------------------------------------------------------
Total shareholders' equity at Dec. 31                $3,494    $3,334
---------------------------------------------------------------------
(1) Represents the excess of cash paid over the average book value
    repurchased as part of the share buyback plan.


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions of United        Three months ended  Twelve months ended
 States dollars, US GAAP                Dec. 31,             Dec. 31,
 basis) (Unaudited)               2003      2002       2003      2002
---------------------------------------------------------------------
Net income                         $77       $54       $200      $193
Foreign currency translation
 adjustments (note 7)                2         2        (3)      (21)
Transfers of realized gains on
 cash flow hedges to earnings
 (note 7)                         (17)       (8)       (61)      (21)
Hedge ineffectiveness transferred
 to earnings (note 7)              (5)         -       (12)         -
Change in gains accumulated in OCI
 for cash flow hedges (note 7)      81        17        230        28
Additional minimum pension
 liability (note 7)                  -       (2)          -       (2)
Transfers of realized losses on
 available-for-sale securities
 to earnings (note 7)                1         4          8         4
Unrealized gains (losses) on
 available-for-sale securities
 (note 7)                           23       (2)         36       (6)
---------------------------------------------------------------------

Comprehensive income              $162       $65       $398      $175
---------------------------------------------------------------------

The accompanying notes are an integral part of these unaudited
interim consolidated financial statements

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. These unaudited interim consolidated financial statements should be read in conjunction with the audited annual consolidated 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; future estimates of costs and expenses; and/or assumptions of future commodity prices, interest rates and foreign currency rates. Such estimates and assumptions include:

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

    --  assessments of whether property, plant and equipment, ore in
        stockpiles and capitalized mining costs may be impaired;

    --  assessments of our ability to realize the benefits of deferred
        income tax assets;

    --  the useful lives of long-lived assets and the rate at which we
        record amortization in earnings;

    --  the estimated fair value of asset retirement obligations;

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

    --  the estimated fair values of derivative instruments;

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

    --  assessments of the likelihood and amounts of 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 we recorded on our balance sheet 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 December 31, 2003, the effect on earnings of adopting FAS 143 was a decrease in income before the cumulative effect of accounting changes by $2 million ($nil per share), and for the twelve-month period ended December 31, 2003 the effect was a decrease in income before the cumulative effect of accounting changes by $43 million ($ 0.08 per share).

For the three-month period ended December 31, 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 twelve-month period ended December 31, 2002, the effect would have been a decrease in income before the cumulative effect of accounting changes by $5 million ($0.01 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 of the mine.

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 December 31, 2003, the effect of adopting this accounting change was a decrease in income before the cumulative effect of accounting changes by $ 0.04 million ($nil per share), and for the twelve-month period ended December 31, 2003, the effect was a decrease in income before the cumulative effect of accounting changes by $0.16 million ($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 December 31, 2002, or twelve-month period ended December 31, 2002.

    C Changes in 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 was to increase pension cost expense by $2 million for the full year.

Proven and probable reserves

For the twelve-month period ended December 31, 2003, we expensed development costs totaling $17 million at our Veladero Project in Argentina because in accordance with our accounting policy for these costs, we do not capitalize development costs incurred until after proven and probable reserves, as defined by United States reporting standards, have been found. Effective October 1, 2003, we determined that the project met the definition of reserves for United States reporting purposes. Following this determination we began capitalizing development costs at the Veladero project prospectively for future periods.


3 COST OF SALES AND OTHER OPERATING EXPENSES
---------------------------------------------------------------------
                             Three months ended   Twelve months ended
                                   December 31,          December 31,
                                2003       2002       2003       2002
---------------------------------------------------------------------
Cost of sales(1)               $ 282      $ 294    $ 1,100    $ 1,114
By-product revenues             (28)       (30)      (114)      (119)
Royalty expenses                  14         11         50         37
Production taxes                   3          2         15          5
Reclamation and other closure
 costs (note 2A)                   -          7          -         34
Accretion expense on
 reclamation/closure obligations
 and other reclamation/closure
 costs (note 2A)                  39          -         83          -
---------------------------------------------------------------------
                               $ 310      $ 284    $ 1,134    $ 1,071
---------------------------------------------------------------------
(1) Cost of sales includes all costs that are capitalized to
    inventory, except for amortization of property, plant and
    equipment.
    The amount of amortization capitalized into inventory, but
    excluded from cost of sales was $128 million in the three months
    ended December 31, 2003 (2002 - $134 million); and $497 million
    in the twelve months ended December 31, 2003 (2002 - $493
    million).

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 charge to inventory 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 December 31, 2003 resulted in an increase in operating costs by $3 million compared to actual costs incurred (three months ended December 31, 2002 - $18 million increase), and for the twelve months ended December 31, 2003, the application resulted in an increase in operating costs by $37 million compared to actual costs incurred (twelve months ended December 31, 2002 - $29 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 grouped with related mining property, plant and equipment for impairment testing purposes.


Average stripping ratios (1)
---------------------------------------------------------------------
                             Three months ended   Twelve months ended
                                   December 31,          December 31,
                                2003       2002       2003       2002
---------------------------------------------------------------------
Open Pit (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 ounces in proven and probable gold reserves.

The average remaining life of the above-mentioned open-pit mine operations for which we capitalize mining costs is 8 years. The full amount of stripping costs incurred will be expensed by the end of the mine lives.



4 OTHER INCOME/EXPENSE
---------------------------------------------------------------------
                               Three months ended Twelve months ended
                                     December 31,        December 31,
                                  2003       2002       2003     2002
---------------------------------------------------------------------
Interest income                    $ 9       $ 12       $ 34     $ 30
Gains on sale of long-lived assets   7          3         39        8
Foreign currency translation gains
 (losses)                            8        (2)          2        1
Losses on available for sale
 securities                        (5)          -       (12)      (4)
Other items                        (8)       (12)       (11)      (6)
---------------------------------------------------------------------
                                  $ 11        $ 1       $ 52     $ 29
---------------------------------------------------------------------

In 2003, we sold various assets, including several land positions around inactive mine sites in the United States; as well as the East Malartic Mill and Bousquet mine in Canada. We may continue to sell further land positions around our inactive mine sites in the United States. These land positions have been fully amortized, and therefore any proceeds would likely generate gains on sale, before selling costs and taxes.

5 INCOME TAXES

Income tax recovery (expense)
---------------------------------------------------------------------
                             Three months ended   Twelve months ended
                                   December 31,          December 31,
                                2003       2002       2003       2002
---------------------------------------------------------------------
Current                        $  20     $ (44)     $ (54)     $ (59)
Deferred                        (16)         66         49         75
---------------------------------------------------------------------
                                $  4      $  22     $  (5)      $  16
---------------------------------------------------------------------

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 $49 million deferred income tax credit for 2003. In fourth quarter 2003, we released valuation allowances totaling $18 million, that mainly includes allowances of $15 million that had been recorded against deferred tax assets in Argentina. Following the approval to begin construction at Veladero and the classification of mineralized material as proven and probable reserves in fourth quarter 2003, we concluded that sufficient evidence existed to support the realization of deferred tax assets, and a valuation allowance was no longer required. Excluding the $39 million valuation allowance release our underlying effective tax rate for 2003 was 20%. 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 6%; and the benefits of previously unrecognized tax loss carry forwards in various foreign subsidiaries which were utilized to offset higher levels of taxable income due to the higher gold price environment which caused our effective tax rate to decrease by 12%.

6 EARNINGS PER SHARE

Net income per share was calculated using the weighted average number of common shares outstanding for the three-month period ended December 31, 2003, which amounted to 534 million shares (2002 - 542 million shares), and for the twelve-month period ended December 31, 2003 amounted to 539 million shares (2002 - 541 million shares).

Diluted net income per share reflects the dilutive effect of the exercise of 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 December 31, 2003 amounted to 536 million shares (2002 - 543 million shares) and for the twelve-month period ended December 31, 2003 amounted to 539 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. These other gains and losses consist mainly of gains and losses on derivative instruments accounted for as cash flow hedges; unrealized gains and losses on available-for-sale securities; and foreign currency translation adjustments.


Parts of comprehensive income
---------------------------------------------------------------------
                     Three months ended           Twelve months ended
                           December 31,                  December 31,
---------------------------------------------------------------------
                 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  $ 2   $  -    $  2   $  -   $ (3)   $  -  $ (21)   $  -
Transfers of
 realized gains
 on cash flow
 hedges to
 earnings
 (note 11F)  (29)     12     (7)    (1)    (91)     30    (25)      4
Hedge
 ineffectiveness
 transferred
 to earnings
 (note 11F)   (9)      4       -      -    (19)      7       -      -
Change in
 gains
 accumulated
 in OCI for
 cash flow
 hedges
 (note 11F)   119   (38)      31    (14)    349  (119)      49   (21)
Additional
 minimum
 pension
 liability      -      -     (2)       -      -      -     (2)      -
Transfers of
 realized
 losses on
 available for
 sale securities
 to earnings    1      -       4       -      8      -       4      -
Unrealized
 gains (losses)
 on available
 for sale
 securities    23      -     (2)       -     36      -     (6)      -
---------------------------------------------------------------------
            $ 107  $(22)   $  26  $ (15)  $ 280 $ (82)  $  (1) $ (17)
---------------------------------------------------------------------


Accumulated other comprehensive income (loss) (OCI)
---------------------------------------------------------------------
                        At December 31, 2003     At December 31, 2002
---------------------------------------------------------------------
                     Pre-tax      Tax  Total  Pre-tax      Tax  Total
                      amount   effect          amount   effect
---------------------------------------------------------------------
Foreign currency
 translation
 adjustments         $ (147)     $  - $(147) $  (144)     $  - $(144)
Accumulated gains
 on cash flow
 hedges (note 11F)       288     (99)    189       49     (17)     32
Additional minimum
 pension liability       (7)        -    (7)      (7)        -    (7)
Unrealized gains (losses)
 on available-for-sale
 securities               38        -     38      (6)        -    (6)
---------------------------------------------------------------------
                       $ 172   $ (99)   $ 73  $ (108)   $ (17) $(125)
---------------------------------------------------------------------


8 INVENTORIES AND OTHER CURRENT ASSETS

---------------------------------------------------------------------
                                      At December 31, At December 31,
                                                 2003            2002
---------------------------------------------------------------------
Inventories
Gold in process and ore in stockpiles            $ 99           $ 100
Mine operating supplies                            58              59
---------------------------------------------------------------------
                                                $ 157           $ 159
---------------------------------------------------------------------
Other current assets
Derivative assets (note 11)                       154              37
Prepaid expenses                                   15              10
---------------------------------------------------------------------
                                                $ 169            $ 47
---------------------------------------------------------------------

Gold in process and ore in stockpiles excludes $64 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 twelve-month period ended December 31, 2003, we repurchased 8.75 million common shares at an average cost of $17.56 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 December 31, 2003, $1.5 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   Twelve months ended
                                   December 31,          December 31,
                                2003       2002       2003       2002
---------------------------------------------------------------------
Total revenues and other income $ 61       $ 62      $ 226      $ 203
Less: costs and expenses          70         53        245        191
---------------------------------------------------------------------
Income (loss) before taxes:      (9)          9       (19)         12
---------------------------------------------------------------------
Net income (loss)             $ (27)        $ 6     $ (38)      $ (1)
---------------------------------------------------------------------


---------------------------------------------------------------------
                            At December 31, 2003 At December 31, 2002
---------------------------------------------------------------------
Current assets                             $  72                $  91
Non-current assets                           233                  236
---------------------------------------------------------------------
Total assets                                 305                  327
---------------------------------------------------------------------
Current liabilities                           20                   75
Intercompany notes payable                   546                  407
Other long-term liabilities                   11                   18
Deferred income taxes                         67                  122
Shareholders' equity                       (339)                (295)
---------------------------------------------------------------------
Total liabilities and shareholders' equity $ 305                $ 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                        4.8    $  28.61        -           -
  Exercised                    (1.0)    $  23.99    (0.7)    $  13.07
  Canceled or expired          (1.2)    $  27.95    (0.1)    $  22.88
---------------------------------------------------------------------
At December 31, 2003            21.5                  2.3
---------------------------------------------------------------------

Under Accounting Principles Board Opinion No. 25 (Accounting for Stock Issued to Employees) (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 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   Twelve months ended
                                   December 31,          December 31,
                                2003       2002       2003       2002
---------------------------------------------------------------------
Pro forma effects
Net income, as reported        $  77      $  54      $ 200     $  193
Stock option expense             (6)        (6)       (24)       (21)
---------------------------------------------------------------------
Pro forma net income           $  71      $  48      $ 176     $  172
---------------------------------------------------------------------
Net income per share
As reported (1)               $ 0.14     $ 0.10     $ 0.37     $ 0.36
Pro forma (1)                 $ 0.14     $ 0.09     $ 0.33     $ 0.32
---------------------------------------------------------------------
(1) basic and diluted
    11 DERIVATIVE INSTRUMENTS

    A Derivative instruments

We use derivative financial instruments to mitigate the effects of certain risks that are inherent in our business, and also to take advantage of opportunities to secure attractive pricing for commodities, currencies and interest rates, utilizing our credit capacity to do so. The inherent risks that we most often attempt to mitigate by the use of derivative instruments occur from changes in commodity prices (gold and silver), interest rates and foreign currency exchange rates. Because we produce gold and silver, incur costs in foreign currencies and invest and borrow in US dollars and are therefore subject to US interest rates, all of our derivative contracts cover natural underlying asset or liability positions.

The purpose of the hedging elements of our derivative program is that changes in the values of cash flows from hedged items are offset by equivalent changes in the values of derivatives instruments.

We do not hold derivatives for the purpose of speculation; our risk management programs are designed to enable us to plan our business effectively and, where possible, mitigate adverse effects of future movements in gold and silver prices, interest rates and foreign currency exchange rates.

For a more detailed description of the types of derivative instruments we use, and our accounting policies 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 fixed price forward gold sales contracts with various counterparties for 15.5 million ounces of future gold production. The terms of the contracts are governed by master trading agreements that we have in place with the counterparties to the contracts. The contracts have final delivery dates over the next 10 to 15 years, but we have the right to accelerate the delivery date at any time over these periods. Contract prices are established at inception through to an interim date. Based on the contractual terms of the fixed-price contracts and current spot and forward gold market prices, the average price that would be realized if all production in the next three years was used to deliver into these contracts would be $309 per ounce. If we do not deliver at this interim date, a new interim date is set. The price for the new interim date is determined in accordance with the master trading agreements which have contractually agreed price adjustment mechanisms based on the market gold price. The master trading agreements have both fixed and floating price mechanisms. The fixed price represents the market price at the start date (or previous interim date) of the contract plus a premium based on the difference between the forward price of gold and the current market price of gold. For the majority of fixed-price forward gold sales contracts, selling prices are fixed through 2006. If at an interim date we opt for a floating price, the floating price represents the spot market price of gold plus or minus the difference between the previously fixed price and the market gold price at that interim date. Forward gold market prices, are principally influenced by the current market price of gold, gold lease rates and U.S. dollar interest rates. The final realized selling price under the contracts will depend on the timing of the actual future delivery date, the market price of gold at the start of the contract and the actual amount of the premium of the forward price of gold over the spot price of gold on the dates that fixed selling prices are set.

We use gold lease rate swap contracts to manage our gold lease rate exposure. Based on the fact that historical short-term gold lease rates have been lower than longer-term gold lease rates, and because fixed price forward gold sales contracts have fixed gold lease rates, we have used these gold lease rate swap contracts to economically achieve a more optimal term structure for gold lease costs. Under these swaps we receive a fixed gold lease rate, and pay a floating gold lease rate on 3.3 million ounces of gold spread from 2004 to 2013. The swaps are associated with forward gold sales contracts with expected delivery dates beyond 2006. The contracts are accounted for as non-hedge derivatives.

Major customers

The largest single counterparty as of December 31, 2003 made up 12% 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 December 31, 2003, we had fixed-price commitments to deliver 22.3 million ounces of silver over periods of up to 10 to 15 years.


C Derivative instruments outstanding as at December 31, 2003
---------------------------------------------------------------------
Maturity             2004      2005    2006    2007   2008+     Total
---------------------------------------------------------------------
Written silver
 call options
  Ounces
   (thousands)      5,000     2,000       -       -       -     7,000
  Average
   exercise price
   per ounce       $ 6.04    $ 5.00       -       -       -    $ 5.74
---------------------------------------------------------------------
Interest rate
 contracts
Receive-fixed swaps
  Notional amount
   (millions)        $ 50         -   $ 100   $ 575   $ 275   $ 1,000
  Fixed rate (%)     3.6%         -    3.0%    3.5%    4.0%      3.6%
Pay-fixed swaps
  Notional amount
   (millions)           -         -       -       -   $ 324     $ 324
  Fixed rate (%)        -         -       -       -    5.7%      5.7%
---------------------------------------------------------------------
Net notional
 position            $ 50         -   $ 100   $ 575  $ (49)     $ 676
---------------------------------------------------------------------
Foreign currency
 contracts
Canadian Dollar
 Forwards
  C$ (millions)     $ 442     $ 329   $ 145    $ 96    $ 22   $ 1,034
  Average Price
   (US cents)        0.68      0.67    0.72    0.67    0.68      0.68
Australian
 Dollar Forwards
  A$ (millions)     $ 591     $ 440   $ 193   $ 139    $ 19   $ 1,382
  Average Price
   (US cents)        0.57      0.58    0.55    0.58    0.53      0.57
Australian Dollar
 Min-Max Contracts
  A$ (millions)      $ 20      $ 10    $ 10       -       -      $ 40
  Average Cap Price
   (US cents)        0.53      0.52    0.52       -       -      0.53
  Average Floor Price
   (US cents)        0.52      0.51    0.51       -       -      0.52
Fuel contracts
  Barrels WTI
   (thousands)        360       180       -       -       -       540
  Cap                $ 30        30       -       -       -      $ 30
  Floor              $ 23        22       -       -       -      $ 23
---------------------------------------------------------------------


Classification of interest rate and foreign currency contracts
---------------------------------------------------------------------
                       Cash flow  Fair value
At December 31, 2003       hedge       hedge    Non-hedge       Total
---------------------------------------------------------------------
Interest rate contracts
Receive-fixed swaps on
 cash balances             $ 650           -            -       $ 650
Receive-fixed swaps on
 debenture                     -       $ 350            -       $ 350
Pay-fixed swaps on
 Bulyanhulu project
 financing                 $ 174           -            -       $ 174
Pay-fixed swaps on
 lease rates                   -           -        $ 150       $ 150
Foreign currency contracts
Canadian dollar contracts $1,012           -         $ 22      $1,034
Australian dollar
 contracts                $1,279           -        $ 143     $ 1,422
---------------------------------------------------------------------


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

---------------------------------------------------------------------
                             Three months ended   Twelve months ended
                                   December 31,          December 31,
                                2003       2002       2003       2002
---------------------------------------------------------------------
Beginning of period           $  220    $     8     $   29   $   (16)

Derivative instruments settled  (36)          -       (91)        (2)
Change in fair value of
 derivative instruments:
  Non-hedge derivatives           37       (14)         52        (6)
  Cash flow hedges               119         31        349         49
   Fair value hedges             (3)          4        (2)          4
---------------------------------------------------------------------
End of period                 $  337     $   29     $  337     $   29
---------------------------------------------------------------------

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 December 31, 2003.

E Non-hedge derivative gains (losses)


---------------------------------------------------------------------
                             Three months ended   Twelve months ended
                                   December 31,          December 31,
                                2003       2002       2003       2002
---------------------------------------------------------------------
Commodity contracts            $   3     $  (3)      $   3     $  (2)
Currency contracts                13          4         17          8
Interest and lease rate contracts 21       (15)         32       (12)
Hedge ineffectiveness recorded
 in earnings                       9          -         19          -
---------------------------------------------------------------------
                               $  46    $  (14)     $   71     $  (6)
---------------------------------------------------------------------


F  Change in gains accumulated in OCI for 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             3        337             9       349
Hedge gains transferred
 to earnings                  (13)(1)    (65)(2)       (13)(3)   (91)

Hedge ineffectiveness
 transferred to earnings         -       (18)           (1)      (19)
---------------------------------------------------------------------
As at December 31, 2003     $  (1)    $   280        $    9   $   288
---------------------------------------------------------------------
  1. Included under gold sales
  2. Included under costs and expenses
  3. Included under interest and other income

Based on the fair value of cash flow hedge contracts at December 31, 2003, in fiscal 2004, we expect to transfer hedge gains of $134 million, from OCI to earnings, to be matched with the related hedged items. These gains will be reflected as a reduction in cash operating costs, and as a component of interest income.

During 2003, 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. On determining that these hedges are no longer effective for accounting purposes, gains totaling $18 million on these contracts were transferred out of OCI to earnings in 2003. For the three and twelve month periods ended December 31, 2003, the total amount of hedge ineffectiveness, including the gains on ineffective capital expenditure hedges, recorded and recognized in non-hedge derivative gains was a gain of $9 million and a gain of $19 million respectively (2002 - $nil and $nil respectively).

12 CONTINGENCIES

Certain conditions may exist as of the date the consolidated 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 loss has been incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the consolidated 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.

    B Litigation and claims

    Inmet litigation

In October 1997, Barrick Gold Inc. ("BGI"), 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.

In February 1998, Inmet filed suit against BGI in the British Columbia ("B.C.") Supreme Court disputing the termination of the agreement and alleging that BGI had breached the agreement. In January 2002, the Court released its decision in the matter and found in favour of Inmet. The Court awarded Inmet equitable damages C$88.2 (US $59) million, which was recorded as an expense in fiscal December 2001. The Court did not award Inmet pre-judgment interest. Inmet made a request to the Court to re-open the trial to make submissions on its claim for pre-judgment interest, which was denied in May 2002.

In February 2002, BGI filed a Notice of Appeal with the B.C. Court of Appeal, and Inmet filed a Cross-Appeal of the decision regarding pre-judgment interest. In November 2003, the B.C. Court of Appeal dismissed the appeal made by BGI, and also awarded Inmet pre-judgment interest. In November 2003, BGI paid Inmet C$111 million (US $86 million), in full settlement of the lawsuit. The settlement resulted in a further expense of US$14 million in fourth quarter 2003, combined with post-judgment interest of $2 million in the first nine months of 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. On June 2, 2003, the Plaintiff's submitted a proposed Trial and Case Management Plan, suggesting that the Plan would cure the defects in the Plaintiff's motions to certify the class. The Court has taken no action with respect to the proposed Trial and Case Management Plan. 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 a 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. In September 2003 the Court issued an Order granting in part and denying in part Barrick's motions to dismiss this action. Discovery has commenced in the case and a trial date has been tentatively set for February 2005. 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. Several other complaints, making the same basic allegations against the same defendants, were filed by other parties on behalf of the same proposed class of Barrick shareholders. In September the cases were consolidated into a single action in the Southern District of New York. The plaintiffs filed a Consolidated and/or Amended Complaint on November 5, 2003. On January 14, 2004 Barrick filed a motion to dismiss the Wagner complaint. We intend to defend the action vigorously.

Peruvian tax assessment

One of our Peruvian subsidiaries received a revised income tax assessment of $32 million, excluding interest and penalties, from the Peruvian tax authority, SUNAT. The tax assessment related to a tax audit of our Pierina Mine for the 1999 and 2000 fiscal years. The assessment mainly relates to the revaluation of the Pierina mining concession for the purpose of determining its tax basis. Under the valuation proposed by SUNAT, the tax basis of the Pierina assets would change from what we previously assumed with a resulting increase in current and deferred income taxes. We believe that the tax assessment is incorrect and we are appealing the decision. The full life of mine effect on our current and deferred income tax liabilities was fully recorded at December 31, 2002, as well as other payments of about $21 million due for periods through 2003.

The case is pending before Peru's Tax Court. If the case is not resolved in our favor, we intend to pursue all available remedies, including judicial appeals. If we are successful and our original valuation is confirmed as the appropriate tax basis of the Pierina assets, we would benefit from a $141 million reduction in current and deferred 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.

In the event of an unfavorable Tax Court ruling, Peruvian law is unclear with respect to whether it is necessary to make payment of the disputed current taxes for the years covered by the tax assessment, pending the outcome of an appeal process, a process which can take several years. The amount of current income taxes that is potentially payable is $80 million. In the event of an unfavorable Tax Court ruling; we will consider taking all available action to prevent payment of the amount in dispute until the appeal process is complete.

We have not provided for $57 million of potential interest and penalties on the income tax 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 continue to 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 available remedies.

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 regional basis. Our four primary regions are North America, Australia/Africa, Peru, Chile and Argentina. Our "other operating mines" segment includes mainly operations which have been, or are being, closed.

Income statement information


---------------------------------------------------------------------
                                  Cost of sales and    Segment income
                                    other operating     (loss) before
                       Gold sales          expenses      income taxes
---------------------------------------------------------------------
Three months ended
 December 31,       2003     2002     2003     2002     2003     2002
---------------------------------------------------------------------
Goldstrike         $ 215    $ 181    $ 141    $ 111     $ 32     $ 35
Pierina               91       95       21       26       27       19
Bulyanhulu            23       42       18       21      (3)        8
Kalgoorlie            39       33       22       23       12        5
Eskay Creek           34       31        1        7       22       10
Hemlo                 27       30       15       17        9       10
Plutonic              33       28       16       15       13       10
Round Mountain        36       29       17       19       14        5
Other operating
 mines                38       57       20       29       11       22
---------------------------------------------------------------------
Segment total        536      526      271      268      137      124
Other items outside
 operating segments    -        -       39       16        -        -
---------------------------------------------------------------------
                   $ 536    $ 526    $ 310    $ 284    $ 137    $ 124
---------------------------------------------------------------------


---------------------------------------------------------------------
                                  Cost of sales and    Segment income
                                    other operating     (loss) before
                       Gold sales          expenses      income taxes
---------------------------------------------------------------------
Twelve months ended
 December 31,        2003      2002     2003     2002    2003    2002
---------------------------------------------------------------------
Goldstrike          $ 813     $ 678    $ 531    $ 437   $ 122    $ 94
Pierina               332       303       76       71      90      71
Bulyanhulu            109       134       73       78     (1)      16
Kalgoorlie            153       124       87       82      46      23
Eskay Creek           130       121       18       16      65      57
Hemlo                  98        97       60       64      27      23
Plutonic              120       105       62       57      48      37
Round Mountain        139       132       66       73      53      38
Other operating
 mines                141       273       78      150      37      87
---------------------------------------------------------------------
Segment total       2,035     1,967    1,051    1,028     487     446
Other items outside
 operating segments     -         -       83       43       -       -
---------------------------------------------------------------------
                  $ 2,035   $ 1,967  $ 1,134  $ 1,071   $ 487   $ 446
---------------------------------------------------------------------


Asset information

Amortization
---------------------------------------------------------------------
                               Three months ended Twelve months ended
                                     December 31,        December 31,
                                   2003      2002       2003     2002
---------------------------------------------------------------------
Goldstrike                         $ 42      $ 35      $ 160    $ 147
Pierina                              43        50        166      161
Bulyanhulu                            8        13         37       40
Kalgoorlie                            5         5         20       19
Eskay Creek                          11        14         47       48
Hemlo                                 3         3         11       10
Plutonic                              4         3         10       11
Round Mountain                        5         5         20       21
Other operating mines                 7         6         26       36
---------------------------------------------------------------------
Segment total                       128       134        497      493
Other amortization outside
 operating segments                   4        10         25       26
---------------------------------------------------------------------
                                  $ 132     $ 144      $ 522    $ 519
---------------------------------------------------------------------


Segment capital expenditures
---------------------------------------------------------------------
                               Three months ended Twelve months ended
                                     December 31,        December 31,
                                    2003     2002      2003      2002
---------------------------------------------------------------------
Operating Mines:
Goldstrike                          $ 11     $ 11      $ 51      $ 46
Plutonic                               4        6        44        20
Bulyanhulu                             9       12        36        56
Kalgoorlie                             2        7        14        14
Pierina                                8        1        17         5
Hemlo                                  3        1        10         6
Round Mountain                         1        1         6         8
Eskay Creek                            1        -         5         8
Other Operating mines                  4        9        29        33
Development Projects:
Veladero                              49        -        68         -
Cowal                                  8        6        24        13
Pascua-Lama                            2        2         9        11
Alto Chicama                           2        5         4         5
Tulawaka                               1        -         1         -
---------------------------------------------------------------------
Segment total                        105       61       318       225
Other capital expenditures
 outside operating segments            1        1         4         3
---------------------------------------------------------------------
                                   $ 106     $ 62     $ 322     $ 228
---------------------------------------------------------------------


Reconciliation of segment income to enterprise net income
---------------------------------------------------------------------
                               Three months ended Twelve months ended
                                     December 31,        December 31,
                                    2003     2002       2003     2002
---------------------------------------------------------------------
Segment income                     $ 137    $ 124      $ 487    $ 446
Non-legal reclamation/closure
 costs/accretion expense/other      (39)        -       (83)        -
Merger and other related costs         -        2          -        2
Reclamation and other closure costs    -     (16)          -     (43)
Amortization outside operating
 segments                            (4)     (10)       (25)     (26)
Exploration and business
 development                        (36)     (27)      (137)    (104)
Administration                      (20)     (15)       (83)     (64)
Other income/expense                  11        1         52       29
Interest expense                     (8)     (13)       (44)     (57)
Non-hedge derivative gains (losses)   46     (14)         71      (6)
Income tax recovery (expense)          4       22        (5)       16
Inmet litigation                    (14)        -       (16)        -
Cumulative effect of changes
 in accounting principles              -        -       (17)        -
---------------------------------------------------------------------
Net income                          $ 77     $ 54      $ 200    $ 193
---------------------------------------------------------------------


14 COMPONENTS OF OTHER NET OPERATING ACTIVITIES
---------------------------------------------------------------------
                               Three months ended Twelve months ended
                                     December 31,        December 31,
                                    2003     2002      2003      2002
---------------------------------------------------------------------
Add (deduct):
  Reclamation costs                  $ -      $ 7       $ -      $ 34
  Losses on available for sale
   securities                          5        -        12         4
  Cumulative effect of changes
   in accounting principles            -        -        17         -
  Accretion expense                    4        -        17         -
  Non-hedge derivative (gains)
   losses                           (46)       14      (71)         6
  Inmet litigation expense            14        -        16         -
Changes in operating assets
 and liabilities:
  Accounts receivable                (2)      (7)         3      (12)
  Inventories                          5     (17)         2        32
  Accounts payable and accrued
   liabilities                        20        5        15       (9)
  Current income taxes accrued      (20)       44        54        59
  Other assets and liabilities        16       52         7      (11)
Cash payments:
  Merger related costs                 -     (12)         -      (50)
  Reclamation and closure costs      (5)     (26)      (25)      (70)
  Income taxes                         8     (12)     (111)      (52)
---------------------------------------------------------------------
Other net operating activities     $ (1)     $ 48    $ (64)    $ (69)
---------------------------------------------------------------------


Mine Statistics
                                                UNITED STATES
---------------------------------------------------------------------
                                           Goldstrike      Goldstrike
                                             Open Pit     Underground
Three months ended Dec. 31,             2003     2002    2003    2002
---------------------------------------------------------------------
Tons mined (thousands)                33,149   34,123     420     441
Tons processed (thousands)             2,445    2,697     423     448
Average grade (ounces per ton)         0.161    0.181   0.390   0.468
Recovery rate (percent)                80.8%    83.2%   89.3%   92.0%
---------------------------------------------------------------------
Production (thousands of ounces)         325      406     147     193

Production costs per ounce
  Cash operating costs                 $ 235    $ 212   $ 240   $ 168
  Royalties and production taxes          15        8      21      16
---------------------------------------------------------------------
  Total cash costs                       250      220     261     184
  Amortization and reclamation            57       48     118     124
---------------------------------------------------------------------
Total production costs                 $ 307    $ 268   $ 379   $ 308
---------------------------------------------------------------------
Capital expenditures (US$ millions)      $ 3      $ 6     $ 8     $ 5
---------------------------------------------------------------------


Twelve months ended Dec. 31,            2003     2002    2003    2002
---------------------------------------------------------------------
Tons mined (thousands)               141,693  142,898   1,631   1,635
Tons processed (thousands)            10,041   10,322   1,622   1,638
Average grade (ounces per ton)         0.189    0.164   0.385   0.428
Recovery rate (percent)                82.0%    83.3%   88.3%   91.3%
---------------------------------------------------------------------
Production (thousands of ounces)       1,559    1,410     552     640

Production costs per ounce
  Cash operating costs                 $ 215    $ 221   $ 234   $ 184
  Royalties and production taxes          18        7      19      14
---------------------------------------------------------------------
  Total cash costs                       233      228     253     198
  Amortization and reclamation            53       58     122     121
---------------------------------------------------------------------
Total production costs                 $ 286    $ 286   $ 375   $ 319
---------------------------------------------------------------------
Capital expenditures (US$ millions)     $ 23     $ 12    $ 28    $ 34
---------------------------------------------------------------------


Mine Statistics
                                                UNITED STATES
---------------------------------------------------------------------
                                     Goldstrike Total  Round Mountain
Three months ended Dec. 31,             2003     2002    2003    2002
---------------------------------------------------------------------
Tons mined (thousands)                33,569   34,564   4,735   7,359
Tons processed (thousands)             2,868    3,145   8,832   7,234
Average grade (ounces per ton)         0.195    0.222   0.012   0.015
Recovery rate (percent)                83.3%    85.9%     n/a     n/a
---------------------------------------------------------------------
Production (thousands of ounces)         472      598      91      89

Production costs per ounce
  Cash operating costs                 $ 236    $ 199   $ 159   $ 191
  Royalties and production taxes          17       11      31      21
---------------------------------------------------------------------
  Total cash costs                       253      210     190     212
  Amortization and reclamation            76       72      59      72
---------------------------------------------------------------------
Total production costs                 $ 329    $ 282   $ 249   $ 284
---------------------------------------------------------------------
Capital expenditures (US$ millions)     $ 11     $ 11     $ 1     $ 1
---------------------------------------------------------------------

Twelve months ended Dec. 31,            2003     2002    2003    2002
---------------------------------------------------------------------
Tons mined (thousands)               143,324  144,533  24,563  31,573
Tons processed (thousands)            11,663   11,960  31,470  31,111
Average grade (ounces per ton)         0.216    0.200   0.016   0.018
Recovery rate (percent)                83.6%    85.7%     n/a     n/a
---------------------------------------------------------------------
Production (thousands of ounces)       2,111    2,050     393     378

Production costs per ounce
  Cash operating costs                 $ 220    $ 209   $ 150   $ 172
  Royalties and production taxes          18        9      23      15
---------------------------------------------------------------------
  Total cash costs                       238      218     173     187
  Amortization and reclamation            72       77      54      69
---------------------------------------------------------------------
Total production costs                 $ 310    $ 295   $ 227   $ 256
---------------------------------------------------------------------
Capital expenditures (US$ millions)     $ 51     $ 46     $ 6     $ 8
---------------------------------------------------------------------


Mine Statistics
                                        AUSTRALIA
---------------------------------------------------------------------
Three months         Plutonic        Darlot     Lawlers    Kalgoorlie
 ended Dec. 31,  2003    2002   2003   2002  2003  2002   2003   2002
---------------------------------------------------------------------
Tons mined
 (thousands)    2,699   3,486    211    211   200 1,960 13,062 12,143
Tons processed
 (thousands)      732     938    224    220   210   183  1,844  1,785
Average grade
 (ounces per
 ton)           0.132   0.101  0.172  0.182 0.135 0.161  0.071  0.063
Recovery rate
 (percent)      91.0%   88.4%  96.8%  97.5% 96.9% 97.4%  87.8%  80.7%
---------------------------------------------------------------------
Production
 (thousands of
 ounces)           88      84     37     40    27    28    115     98

Production costs
 per ounce
  Cash operating
   costs         $187    $177   $172   $155  $259  $180   $205   $224
  Royalties and
   production
   taxes            9      10     10      8     9     8     10      7
---------------------------------------------------------------------
  Total cash
   costs          196     187    182    163   268   188    215    231
  Amortization and
   reclamation     49      45     59     51    58    43     53     58
---------------------------------------------------------------------
Total production
 costs           $245    $232   $241   $214  $326  $231   $268   $289
---------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)    $4      $6     $2     $2    $1    $3     $2     $7
---------------------------------------------------------------------

Twelve months
 ended Dec. 31,  2003    2002   2003   2002  2003  2002   2003   2002
---------------------------------------------------------------------
Tons mined
 (thousands)   14,180  14,289    876    840 1,152 4,746 48,677 46,324
Tons processed
 (thousands)    3,010   3,532    879    849   806   718  7,171  7,051
Average grade
 (ounces per
 ton)           0.123   0.097  0.182  0.176 0.128 0.162  0.071  0.061
Recovery rate
 (percent)      89.9%   89.5%  96.9%  97.2% 95.8% 97.3%  85.8%  82.6%
---------------------------------------------------------------------
Production
 (thousands of
 ounces)          334     307    155    145    99   113    436    360

Production costs
 per ounce
  Cash operating
   costs         $185    $175   $156   $160  $241  $171   $201   $215
  Royalties and
   production
   taxes            8       9      8      8     8     8      8      7
---------------------------------------------------------------------
  Total cash
   costs          193     184    164    168   249   179    209    222
  Amortization and
   reclamation     31      38     52     47    42    42     48     57
---------------------------------------------------------------------
Total production
 costs           $224    $222   $216   $215  $291  $221   $257   $279
---------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)   $44     $20     $7     $7   $14    $7    $14    $14
---------------------------------------------------------------------


Mine Statistics
                                           CANADA
---------------------------------------------------------------------
Three months                Hemlo       Eskay Creek    Holt-McDermott
 ended Dec. 31,     2003     2002     2003     2002      2003    2002
---------------------------------------------------------------------
Tons mined
 (thousands)       1,039    1,102       63       69       142     142
Tons processed
 (thousands)         514      494       65       67       150     142
Average grade
 (ounces per ton)  0.133    0.177    1.481    1.511     0.166   0.162
Recovery rate
 (percent)         95.1%    95.5%    94.1%    93.5%     93.5%   94.2%
---------------------------------------------------------------------
Production
 (thousands of
 ounces)              65       83       83       97        23      22

Production costs
 per ounce
  Cash operating
   costs            $219     $177      $15      $47      $210    $193
  Royalties and
   production
   taxes               8        7        5        4         -       -
---------------------------------------------------------------------
  Total cash costs   227      184       20       51       210     193
  Amortization and
   reclamation        37       38      132      142       144      90
---------------------------------------------------------------------
Total production
 costs              $264     $222     $152     $193      $354    $283
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)       $3       $1       $1       $-        $-      $2
---------------------------------------------------------------------

Twelve months
 ended Dec. 31,     2003     2002     2003     2002      2003    2002
---------------------------------------------------------------------
Tons mined
 (thousands)       4,178    4,114      272      254       557     520
Tons processed
 (thousands)       1,971    1,906      275      256       559     520
Average grade
 (ounces per ton)  0.143    0.149    1.432    1.502     0.170   0.170
Recovery rate
 (percent)         95.0%    94.7%    93.7%    93.7%     94.3%   94.6%
---------------------------------------------------------------------
Production
 (thousands of
 ounces)             268      269      352      359        90      84

Production costs
 per ounce
  Cash operating
   costs            $218     $216      $48      $36      $239    $173
  Royalties and
   production taxes    8        8        4        4         -       -
---------------------------------------------------------------------
  Total cash costs   226      224       52       40       239     173
  Amortization and
   reclamation        40       40      132      134       131      96
---------------------------------------------------------------------
Total production
 costs              $266     $264     $184     $174      $370    $269
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)      $10       $6       $5       $8        $-      $7
---------------------------------------------------------------------


Mine Statistics
                                              PERU          TANZANIA
---------------------------------------------------------------------
                                            Pierina        Bulyanhulu
Three months ended Dec. 31,           2003     2002     2003     2002
---------------------------------------------------------------------
Tons mined (thousands)              10,106    8,865      257      260
Tons processed (thousands)               -        -      261      274
Average grade (ounces per ton)       0.071    0.095    0.341    0.426
Recovery rate (percent)                  -        -    88.5%    86.2%
---------------------------------------------------------------------
Production (thousands of ounces)       206      281       79      101

Production costs per ounce
  Cash operating costs                 $89      $95     $301     $177
  Royalties and production taxes         -        -       15        8
---------------------------------------------------------------------
  Total cash costs                      89       95      316      185
  Amortization and reclamation         181      191      125      116
---------------------------------------------------------------------
Total production costs                $270     $286     $441     $301
---------------------------------------------------------------------
Capital expenditures (US$ millions)     $8       $1       $9      $12
---------------------------------------------------------------------

Twelve months ended Dec. 31,          2003     2002     2003     2002
---------------------------------------------------------------------
Tons mined (thousands)              39,501   32,311      945      944
Tons processed (thousands)               -        -      980    1,075
Average grade (ounces per ton)       0.074    0.080    0.363    0.385
Recovery rate (percent)                  -        -    88.1%    86.1%
---------------------------------------------------------------------
Production (thousands of ounces)       912      898      314      356

Production costs per ounce
  Cash operating costs                 $83      $80     $235     $190
  Royalties and production taxes         -        -       11        8
---------------------------------------------------------------------
  Total cash costs                      83       80      246      198
  Amortization and reclamation         182      191      123      102
---------------------------------------------------------------------
Total production costs                $265     $271     $369     $300
---------------------------------------------------------------------
Capital expenditures (US$ millions)    $17       $5      $36      $56
---------------------------------------------------------------------


SUMMARY GOLD MINERAL RESERVES AND MINERAL RESOURCES(1)

For the year ended December 31,                                  2003
---------------------------------------------------------------------
                                     Tons         Grade        Ounces
Based on attributable ounces      (000's)      (oz/ton)       (000's)
---------------------------------------------------------------------
NORTH AMERICA
Open Pit    (proven and probable) 109,742         0.143        15,685
            (mineral resource)     37,403         0.061         2,264
---------------------------------------------------------------------
Underground (proven and probable)   9,177         0.377         3,460
            (mineral resource)      5,841         0.426         2,489
---------------------------------------------------------------------
Goldstrike
 Property
 Total      (proven and probable) 118,919         0.161        19,145
            (mineral resource)     43,244         0.110         4,753
---------------------------------------------------------------------
Round
 Mountain
 (50%)      (proven and probable)  89,852         0.018         1,583
            (mineral resource)     37,770         0.017           645
---------------------------------------------------------------------
Marigold
 (33%)      (proven and probable)  34,270         0.022           737
            (mineral resource)     13,334         0.020           268
---------------------------------------------------------------------
Eskay Creek (proven and probable)     927         1.015           941
            (mineral resource)        422         0.287           121
---------------------------------------------------------------------
Hemlo (50%) (proven and probable)  17,557         0.099         1,744
            (mineral resource)      3,017         0.090           271
---------------------------------------------------------------------
Holt-
 McDermott  (proven and probable)     340         0.162            55
            (mineral resource)        452         0.195            88
---------------------------------------------------------------------
SOUTH AMERICA
Pascua-Lama (proven and probable) 296,411         0.057        16,862
            (mineral resource)    115,845         0.030         3,487
---------------------------------------------------------------------
Veladero    (proven and probable) 317,187         0.035        11,115
            (mineral resource)     67,715         0.023         1,540
---------------------------------------------------------------------
Pierina     (proven and probable)  61,393         0.045         2,768
            (mineral resource)     25,421         0.016           419
---------------------------------------------------------------------
Alto
 Chicama    (proven and probable) 159,250         0.045         7,155
            (mineral resource)     25,751         0.067         1,735
---------------------------------------------------------------------
AUSTRALIA/AFRICA
Plutonic    (proven and probable)  20,635         0.128         2,646
            (mineral resource)     13,395         0.147         1,967
---------------------------------------------------------------------
Lawlers     (proven and probable)   3,234         0.124           402
            (mineral resource)      8,777         0.129         1,136
---------------------------------------------------------------------
Darlot      (proven and probable)   7,627         0.149         1,135
            (mineral resource)      4,194         0.130           546
---------------------------------------------------------------------
Kalgoorlie
 (50%)      (proven and probable)  97,047         0.061         5,894
            (mineral resource)     44,584         0.058         2,580
---------------------------------------------------------------------
Cowal       (proven and probable)  70,107         0.036         2,495
            (mineral resource)     41,027         0.039         1,596
---------------------------------------------------------------------
Bulyanhulu  (proven and probable)  27,882         0.391        10,907
            (mineral resource)      4,300         0.440         1,894
---------------------------------------------------------------------
Tulawaka
 (70%)      (proven and probable)   1,093         0.337           368
            (mineral resource)        680         0.066            45
---------------------------------------------------------------------
OTHER       (proven and probable)       -             -             -
            (mineral resource)     20,404         0.078         1,598
---------------------------------------------------------------------

TOTAL       (proven and
             probable)          1,323,731         0.065        85,952
            (mineral resource)    470,332         0.052        24,689
---------------------------------------------------------------------

For the year ended December 31,                                  2002
---------------------------------------------------------------------
                                     Tons         Grade        Ounces
Based on attributable ounces      (000's)      (oz/ton)       (000's)
---------------------------------------------------------------------
NORTH AMERICA
Open Pit    (proven and probable) 107,130         0.150        16,051
            (mineral resource)     46,400         0.070         3,231
---------------------------------------------------------------------
Underground (proven and probable)   9,770         0.398         3,888
            (mineral resource)      5,107         0.466         2,378
---------------------------------------------------------------------
Goldstrike
 Property
 Total      (proven and probable) 116,900         0.171        19,939
            (mineral resource)     51,507         0.109         5,609
---------------------------------------------------------------------
Round
 Mountain
 (50%)      (proven and probable)  96,057         0.020         1,875
            (mineral resource)     17,455         0.010           176
---------------------------------------------------------------------
Marigold
 (33%)      (proven and probable)  26,351         0.026           678
            (mineral resource)     13,665         0.016           219
---------------------------------------------------------------------
Eskay Creek (proven and probable)   1,433         0.998         1,430
            (mineral resource)        384         0.398           153
---------------------------------------------------------------------
Hemlo (50%) (proven and probable)  19,726         0.107         2,118
            (mineral resource)      2,677         0.093           248

---------------------------------------------------------------------
Holt-
 McDermott  (proven and probable)     847         0.182           154
            (mineral resource)        246         0.248            61
---------------------------------------------------------------------
SOUTH AMERICA
Pascua-Lama (proven and probable) 296,411         0.057        16,862
            (mineral resource)    115,845         0.030         3,487
---------------------------------------------------------------------
Veladero    (proven and probable) 254,311         0.037         9,384
            (mineral resource)    135,760         0.024         3,260
---------------------------------------------------------------------
Pierina     (proven and probable)  70,343         0.051         3,602
            (mineral resource)     39,938         0.016           626
---------------------------------------------------------------------
Alto
 Chicama    (proven and probable) 120,948         0.054         6,535
            (mineral resource)     56,352         0.035         1,998
---------------------------------------------------------------------
AUSTRALIA/AFRICA
Plutonic    (proven and probable)  13,976         0.181         2,533
            (mineral resource)     19,349         0.118         2,287
---------------------------------------------------------------------
Lawlers     (proven and probable)   3,407         0.149           509
            (mineral resource)      8,379         0.133         1,115
---------------------------------------------------------------------
Darlot      (proven and probable)   8,202         0.155         1,269
            (mineral resource)      4,169         0.130           540
---------------------------------------------------------------------
Kalgoorlie
 (50%)      (proven and probable)  96,898         0.057         5,551
            (mineral resource)     41,911         0.054         2,279
---------------------------------------------------------------------
Cowal       (proven and probable)  75,922         0.037         2,835
            (mineral resource)     35,211         0.036         1,255
---------------------------------------------------------------------
Bulyanhulu  (proven and probable)  27,420         0.425        11,653
            (mineral resource)      4,765         0.352         1,678
---------------------------------------------------------------------
Tulawaka
 (70%)      (proven and probable)       -             -             -
            (mineral resource)          -             -             -
---------------------------------------------------------------------
OTHER       (proven and probable)       -             -             -
            (mineral resource)      1,085         0.335           364
---------------------------------------------------------------------
TOTAL       (proven and
             probable)          1,229,152         0.071        86,927
            (mineral resource)    548,698         0.046        25,355
---------------------------------------------------------------------
(1) Includes measured and indicated resources.


GOLD MINERAL RESERVES(1)
As at December 31, 2003             PROVEN                   PROBABLE
---------------------------------------------------------------------
Based on
 attributable        Tons    Grade  Ounces      Tons    Grade  Ounces
 ounces           (000's) (oz/ton) (000's)   (000's) (oz/ton) (000's)
---------------------------------------------------------------------
NORTH AMERICA
  Open Pit         61,551    0.128   7,856    48,191    0.162   7,829
  Underground       3,316    0.467   1,547     5,862    0.326   1,913
 Goldstrike
  Property Total   64,867    0.145   9,403    54,053    0.180   9,742
 Round Mountain
  (50%)            64,933    0.017   1,081    24,919    0.020     502
 Marigold (33%)     3,441    0.028      98    30,828    0.021     638
 Eskay Creek          387    1.398     541       540    0.741     400
 Hemlo (50%)       10,766    0.113   1,213     6,791    0.078     531
 Holt-McDermott        31    0.161       5       309    0.162      50
---------------------------------------------------------------------
SOUTH AMERICA
 Pierina           26,112    0.060   1,560    35,281    0.034   1,208
 Pascua-Lama       37,738    0.062   2,355   258,673    0.056  14,507
 Veladero          19,037    0.042     801   298,150    0.035  10,314
 Alto Chicama       4,443    0.051     225   154,807    0.045   6,930
---------------------------------------------------------------------
AUSTRALIA/AFRICA
 Plutonic             403    0.057      23    20,232    0.130   2,623
 Lawlers              790    0.133     105     2,444    0.122     297
 Darlot             3,181    0.119     379     4,446    0.170     756
 Kalgoorlie (50%)  37,799    0.054   2,042    59,248    0.065   3,852
 Cowal              5,723    0.042     238    64,384    0.035   2,257
 Bulyanhulu         1,784    0.407     726    26,098    0.390  10,181
 Tulawaka (70%)         -        -       -     1,093    0.337     368
---------------------------------------------------------------------

TOTAL             281,435    0.074  20,795 1,042,296    0.063  65,156
---------------------------------------------------------------------

As at December 31, 2003                                         TOTAL
---------------------------------------------------------------------
                                               Tons    Grade   Ounces
Based on attributable ounces                (000's) (oz/ton)  (000's)
---------------------------------------------------------------------
NORTH AMERICA
  Open Pit                                  109,742    0.143   15,685
  Underground                                 9,177    0.377    3,460
 Goldstrike Property Total                  118,919    0.161   19,145
 Round Mountain (50%)                        89,852    0.018    1,583
 Marigold (33%)                              34,270    0.022      737
 Eskay Creek                                    927    1.015      941
 Hemlo (50%)                                 17,557    0.099    1,744
 Holt-McDermott                                 340    0.162       55
---------------------------------------------------------------------
SOUTH AMERICA
 Pierina                                     61,393    0.045    2,768
 Pascua-Lama                                296,411    0.057   16,862
 Veladero                                   317,187    0.035   11,115
 Alto Chicama                               159,250    0.045    7,155
---------------------------------------------------------------------
AUSTRALIA/AFRICA
 Plutonic                                    20,635    0.128    2,646
 Lawlers                                      3,234    0.124      402
 Darlot                                       7,627    0.149    1,135
 Kalgoorlie (50%)                            97,047    0.061    5,894
 Cowal                                       70,107    0.036    2,495
 Bulyanhulu                                  27,882    0.391   10,907
 Tulawaka (70%)                               1,093    0.337      368
---------------------------------------------------------------------

TOTAL                                     1,323,731    0.065   85,952
---------------------------------------------------------------------
(1) See accompanying footnote on next page.

MINERAL RESERVES AND MINERAL RESOURCES NOTE

Mineral reserves ("reserves") have been calculated as at December 31, 2003 in accordance with National Instrument 43-101, as required by Canadian securities regulatory authorities. For the United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934, as interpreted by the Staff of the U.S. Securities and Exchange Commission), applies different standards in order to classify mineralization as a reserve. Accordingly, Alto Chicama is classified for U.S. reporting purposes as mineralized material. Calculations have been prepared by employees of Barrick under the supervision of Rene M. Marion, P.Eng., Vice-President, Technical Services of Barrick and/or Alexander J. Davidson, P.Geol., Executive Vice-President, Exploration of Barrick. Reserves have been calculated using an assumed long-term average gold price of US$325, a silver price of US$4.75 and exchange rates of $1.50 $Can/$US and $0.57 $US/$Aus. Reserves at the KCGM property assumed an exchange rate of $0.59 $US/$A. Reserves at the Hemlo property assumed an exchange rate of $1.53 $Can/$US. Reserve calculations incorporate current and/or expected mine plans and cost levels at each property. (In 2002, except with respect to the Australian properties, reserves have been calculated using an assumed long-term average gold price of US$300 and a silver price of US$4.75. Reserves at Kalgoorlie in 2002 assumed a gold price of US$297.) Varying cut-off grades have been used depending on the mine and type of ore contained in the reserves. Barrick's normal data verification procedures have been employed in connection with the calculations. For a more detailed description of the key assumptions, parameters and methods used in calculating Barrick's reserves and resources, see Barrick's most recent Annual Information Form on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission.


GOLD MINERAL RESOURCES(1)
As at December 31, 2003       MEASURED (M)              INDICATED (I)
---------------------------------------------------------------------
Based on
 attributable       Tons     Grade  Ounces      Tons    Grade  Ounces
 ounces          (000's)  (oz/ton) (000's)   (000's) (oz/ton) (000's)
---------------------------------------------------------------------
NORTH AMERICA
  Open Pit        14,077     0.059     831    23,326    0.061   1,433
  Underground      1,580     0.435     687     4,261    0.423   1,802
 Goldstrike
  Property Total  15,657     0.097   1,518    27,587    0.117   3,235
 Round Mountain
  (50%)           10,050     0.013     133    27,720    0.018     512
 Marigold (33%)    6,645     0.020     134     6,689    0.020     134
 Eskay Creek          93     0.290      27       329    0.286      94
 Hemlo (50%)       1,171     0.112     131     1,846    0.076     140
 Holt-McDermott        -         -       -       452    0.195      88
---------------------------------------------------------------------
SOUTH AMERICA
 Pierina           6,017     0.017     103    19,404    0.016     316
 Pascua-Lama       3,962     0.055     216   111,883    0.029   3,271
 Veladero          3,423     0.021      72    64,292    0.023   1,468
 Alto Chicama      1,624     0.063     103    24,127    0.068   1,632
---------------------------------------------------------------------
AUSTRALIA/AFRICA
 Plutonic            190     0.216      41    13,205    0.146   1,926
 Lawlers           2,009     0.153     307     6,768    0.122     829
 Darlot            1,098     0.142     156     3,096    0.126     390
 Kalgoorlie (50%) 14,447     0.055     794    30,137    0.059   1,786
 Cowal             2,063     0.048      98    38,964    0.038   1,498
 Bulyanhulu           54     0.222      12     4,246    0.443   1,882
 Tulawaka (70%)        -         -       -       680    0.066      45
---------------------------------------------------------------------

OTHER                  -         -       -    20,404    0.078   1,598
---------------------------------------------------------------------

TOTAL             68,503     0.056   3,845   401,829    0.052  20,844
---------------------------------------------------------------------

As at December 31, 2003           (M) + (I)                  INFERRED
---------------------------------------------------------------------
                                     Ounces     Tons    Grade  Ounces
Based on attributable ounces        (000's)  (000's) (oz/ton) (000's)
---------------------------------------------------------------------
NORTH AMERICA
  Open Pit                            2,264      323    0.065      21
  Underground                         2,489    7,725    0.366   2,827
 Goldstrike Property Total            4,753    8,048    0.354   2,848
 Round Mountain (50%)                   645    9,790    0.018     180
 Marigold (33%)                         268   59,144    0.014     826
 Eskay Creek                            121      277    0.513     142
 Hemlo (50%)                            271    3,952    0.142     562
 Holt-McDermott                          88      133    0.271      36
---------------------------------------------------------------------
SOUTH AMERICA
 Pierina                                419      154    0.013       2
 Pascua-Lama                          3,487  126,841    0.027   3,475
 Veladero                             1,540   73,462    0.023   1,704
 Alto Chicama                         1,735   10,233    0.060     617
---------------------------------------------------------------------
AUSTRALIA/AFRICA
 Plutonic                             1,967    8,624    0.175   1,508
 Lawlers                              1,136    1,745    0.122     213
 Darlot                                 546      144    0.194      28
 Kalgoorlie (50%)                     2,580    4,621    0.043     197
 Cowal                                1,596   31,053    0.033   1,011
 Bulyanhulu                           1,894    5,268    0.512   2,697
 Tulawaka (70%)                          45      161    0.075      12
---------------------------------------------------------------------

OTHER                                 1,598   11,768    0.118   1,387
---------------------------------------------------------------------

TOTAL                                24,689  355,418    0.049  17,445
---------------------------------------------------------------------
(1) Resources which are not reserves have demonstrated economic
    viability.


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
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and United States: 1-800-720-7415   Email: inquiries@cibcmellon.ca
Email:  investor@barrick.com        Web site: www.cibcmellon.com
Web site:  www.barrick.com

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National Bank
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Smith Barney Citigroup
Westwind Partners                   MEDIA CONTACT:
                                    Vincent Borg
                                    Vice President,
                                    Corporate Communications
                                    Tel:  (416) 307-7477
                                    Email: vborg@barrick.com

Barrick's exploration programs are designed and conducted under the supervision of Alexander J. Davidson, P. Geo., Executive Vice President, Exploration of Barrick. For information on the geology, exploration activities generally, and drilling and analysis procedures on Barrick's material properties, see Barrick's most recent Annual Information Form on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission. Certain statements included herein, including those regarding production, costs, timing of permitting, construction or production, 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; 416-861-1509
             media@barrick.com

    SOURCE: Barrick Gold Corporation

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Gold  $ 1,256.46 +2.71 +0.22% Volume: December 15, 2017
ABX NYSE  $ 14.06 -0.11 -0.78% Volume: 16,747,058 December 15, 2017
ABX TSX  $ 18.13 +0.07 +0.39% Volume: 7,279,132 December 15, 2017
Gold  $ 1,256.46 +2.71 +0.22% Volume: December 15, 2017

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

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