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Barrick Earns $156 Million-$0.29 per Share-in Fourth Quarter

February 17, 2005

TORONTO, Feb 17, 2005 (BUSINESS WIRE) -- Barrick Gold Corporation (NYSE:ABX)(TSX:ABX)(LSE:BGD)(SWX:ABX)(BOURSE:ABX)

    YEAR-END REPORT 2004 - February 17, 2005

    Based on US GAAP and expressed in US dollars

    Gold Reserves Increase by 14% at Six Development Projects

    Highlights

- Fourth quarter net income was $156 million, or $0.29 per share, and full year net income was $248 million, or $0.46 per share. Fourth quarter production was 1.2 million ounces of gold at total cash costs of $221(1) per ounce. Full-year production was 5.0 million ounces at total cash costs of $212(1) per ounce, meeting Barrick's original 2004 production and cost targets during a year of significant cost pressures for the mining industry.

- Gold reserves as at December 31, 2004 stood at 89.1 million ounces(2) based on a $375 gold price, the second largest reserve base in the industry.

- Significant progress continues to be made on the development projects. The first three full years of annual production are expected to average approximately 1.8 million ounces of gold at total cash costs of about $185 per ounce. First production from Tulawaka is expected in the first quarter, and both Lagunas Norte and Veladero are on schedule to begin producing in the third and fourth quarters of this year, respectively. In 2005, these three mines are expected to drive a 10% increase over 2004 production.

- The Company has allocated 6.5 million ounces of its existing gold sales contracts to Pascua-Lama, or roughly 35% of currently identified gold reserves at the project, to provide future financing support. The Corporate gold sales contract position at year end, which excluded the Pascua-Lama contracts, was 7.0 million ounces, or approximately 10% of the Company's non-Pascua-Lama reserves.

- During the fourth quarter, the Company raised $750 million through the sale of long-term debt securities, the proceeds of which will be used primarily for funding construction at Barrick's development projects and for general corporate purposes.

Barrick Gold Corporation today reported earnings of $156 million ($0.29 per share) and operating cash flow of $120 million for the fourth quarter 2004, compared to earnings of $77 million ($0.14 per share) and operating cash flow of $134 million in the year-earlier period.

The Company's fourth-quarter earnings included a $141-million tax credit and a $15-million after-tax reversal of other accrued costs as a result of a favorable resolution of the Peruvian tax assessment, $48 million in other deferred tax credits, a $24-million after-tax gain on asset sales and a $6-million after-tax non-hedge derivative gain. These were partially offset by after-tax impairment charges totaling $95 million, primarily at Eskay Creek and exploration properties purchased as part of the Arequipa acquisition, and a $15-million after-tax change in asset retirement obligation estimates. Earnings in the prior-year quarter included $41 million in deferred tax credits, a $3-million after-tax gain on asset sales and a $37-million after-tax non-hedge derivative gain, partially offset by $11 million in after-tax litigation costs, after-tax impairment charges totaling $7 million, and a $6-million after-tax change in asset retirement obligation estimates.

The higher earnings in fourth quarter 2004 were favorably impacted by a $23-per-ounce higher realized gold price, compared to the prior-year period, but were offset by lower gold sales and higher total cash costs.

"Our fourth quarter operating results were in line with our expectations," said Greg Wilkins, President and Chief Executive Officer. "Looking ahead to 2005, we anticipate our operating performance to benefit over the course of the year as our three new development projects enter into production."

For 2004, net income was $248 million ($0.46 per share) and operating cash flow was $506 million, compared to net income of $200 million ($0.37 per share) and operating cash flow of $519 million in 2003. Earnings in both years included various items that significantly impacted the comparability of results. These items are summarized in a table on page 15 of this report.

PRODUCTION AND COSTS

For the year, the Company produced 4.96 million ounces of gold at total cash costs of $212 per ounce, compared to 5.51 million ounces at total cash costs of $189 per ounce for 2003. The Company achieved its original overall production and total cash cost guidance for the year, despite the significant cost pressures faced by the mining industry during the year. Barrick continues to have the lowest cash costs of the senior gold producers.

In fourth quarter 2004, Barrick produced 1.2 million ounces of gold at total cash costs of $221 per ounce, compared to 1.3 million ounces at total cash costs of $199 per ounce for the prior-year quarter.

The North American region performed well during the quarter with an increase in production over the third quarter 2004 at lower total cash costs. For the year, the region's production was in line with guidance at slightly lower total cash costs.

In the South American region, fourth-quarter production at Pierina was lower than the prior 2004 quarters and at higher total cash costs. Production for the full year for the region was slightly higher than guidance and, as previously announced, total cash costs were higher than guidance due to mine sequencing changes implemented in the second half of 2004.

The Australian/African region's production in the fourth quarter was lower than the third quarter 2004 and at higher cash costs due to lower production and higher costs from Plutonic and Bulyanhulu. For the year, the region's production was higher than guidance and at slightly higher total cash costs.

RESERVES

At year-end 2004, the Company had proven and probable reserves of 89.1 million ounces of gold based on a $375 per ounce gold price. The Company met its objective of more than replacing reserves and added 8.6 million ounces prior to production depletion.

"The increase in our reserve base underscores the high-quality assets Barrick has within its portfolio," said Peter Kinver, Executive Vice President and Chief Operating Officer. "I believe there is potential to grow our reserves further, especially in and around our development projects."

Silver contained in Barrick's gold reserves at year end is 911 million ounces and is primarily derived from the Pascua-Lama deposit, one of the largest silver resources in the world, which contains 643 million ounces of silver.

DEVELOPMENT PROJECTS UPDATE

Progress on all of Barrick's development projects is going well. Total estimated capital for the four projects under construction - Lagunas Norte, Veladero, Cowal and Tulawaka - is about $1.2 billion, with the first full three years of annual production expected to average approximately 1.8 million ounces of gold at total cash costs of about $185 per ounce. The projects achieved a number of important milestones during the quarter, keeping them on track for scheduled production commencement.

Progress continues on schedule and on budget at the Lagunas Norte deposit in the Alto Chicama district in Peru, with overall mine development 70% complete. As previously announced, the Lagunas Norte/Alto Chicama Legal Stability Agreement between Barrick and the Peruvian government has been executed, providing greater certainty as to the foreign exchange and fiscal administrative regime for 15 years. Production is expected to commence in the third quarter of 2005. The project's reserves increased by 2.0 million ounces, or 28%, to 9.1 million ounces at year-end 2004.

At Veladero in Argentina, progress continues with overall mine development over 65% complete. Total estimated construction capital for the project is $540 million. Construction of the plant facilities and crushers is well advanced, and the valley-fill leach facility embankment was substantially completed earlier this year. Mining activities steadily increased during the quarter due to greater equipment availability and productivity improvements. Reserves increased by 1.7 million ounces, or 16%, to 12.8 million ounces at year-end 2004 largely due to a successful drill program during the year. Drilling around the minesite has begun.

The Company's Cowal project in Australia is progressing well and production is expected to commence in the first quarter 2006. Construction capital, however, is expected to increase from previous guidance to approximately $305 million due to factors including increases in commodity and consumable prices, and the very competitive construction labor market in Australia.

Mining has commenced at the 70%-owned Tulawaka joint venture in Tanzania. The first gold pour is expected by the end of first quarter 2005.

At Barrick's Pascua-Lama project that straddles the Chilean and Argentine border, the environmental impact assessments were filed during the fourth quarter with approvals targeted by the end of 2005. Work is ongoing on community and government relations, permitting, protocol implementation and tax stability. The project's gold reserves increased by 0.8 million ounces, or 5%, to 17.6 million ounces at year-end 2004.

At the East Archimedes project located at the Ruby Hill mine site in Nevada, designed as an open-pit, heap leach operation, the mining fleet has been ordered and permitting work is ongoing. Construction capital is estimated at approximately $75 million over an expected two-year construction phase that begins once permitting is secured. The first gold pour is targeted for mid-2007.

In Nevada, the power plant site preparation work was completed earlier this year and work on the foundation has begun. Delivery of the first engines is anticipated early in second quarter 2005. The plant is expected to commence operation in fourth quarter 2005.

FINANCIAL POSITION

During the fourth quarter, the Company raised $750 million through the sale of long-term debt securities, the proceeds of which will be used primarily for funding construction at Barrick's development projects and for general corporate purposes. At December 31, 2004, the Company had $1.4 billion in cash available to fund its development projects without the need for any equity dilution. Barrick has the gold mining industry's only A-rated balance sheet, as rated by Standard & Poor's.

During the quarter, Barrick reduced its fixed-price gold forward sales position by about 200,000 ounces, bringing the reduction for the year to 2 million ounces, in excess of the targeted 1.5 million ounces for 2004.

Barrick has also allocated 6.5 million ounces of its existing gold sales contracts to Pascua-Lama during the quarter in support of anticipated financing for the project. The Pascua-Lama gold sales position represents just over 35% of currently identified gold reserves at the project and does not impact any of the 643 million ounces of silver contained within the gold reserves. Barrick expects the allocation of these contracts will preclude any requirement by lenders for any incremental gold sales contracts.

At quarter end, the Company's Corporate gold sales contract position, which excludes Pascua-Lama contracts, was 7.0 million ounces, representing just over one year of future expected gold production and approximately 10% of the Company's reported non-Pascua-Lama proven and probable gold reserves.

EXPLORATION UPDATE

During the quarter, Barrick had drill programs underway on 14 properties(3). Early stage exploration was carried out in all regions during the quarter and is helping to identify focus areas for detailed follow-up and drilling in 2005.

In North America, drill programs at Goldstrike at the North and South Pit targets were completed and successfully converted existing resources to reserves as well as added new resources. The Betze Drift development continued and should be completed in first quarter 2005. Once complete, a resource definition drill program will test the strike length of the North Post orebody. On the Rossi and Dee properties, the underground drill program to better define the Storm resource as well as a pre-feasibility study were completed during the quarter.

During the fourth quarter, fieldwork commenced in the Frontera District in Chile/Argentina. Target areas, prioritized from the regional compilation completed last quarter, were further evaluated and an aggressive drill program to test initial targets in proximity to Veladero/ Pascua-Lama is planned to commence early in 2005. Fieldwork will be carried out on additional targets to focus on specific targets for drill testing later in the year.

In Peru, drill programs were completed in the Alto Chicama District at Lagunas Sur and Alto La Bandera, located just south of Lagunas Norte. Results are being evaluated. Regional exploration continues to focus and prioritize areas for follow-up in 2005 and drill programs are planned for later in the year.

In Australia, a drill program commenced at the NW Telfer property and exploration programs were underway in Western Australia.

In Africa, the Phase II drill program at Buzwagi, located about 80 kilometers south of Bulyanhulu, was completed during the quarter, with positive results.

"We are extremely pleased with the progress made at Buzwagi during the year. We were able to establish a significant resource and meaningfully advance the project along the pipeline," said Alex Davidson, Executive Vice President, Exploration.

A scoping study is underway at Buzwagi and additional drilling will be carried out in 2005 to further evaluate extensions to the mineralization and attempt to convert existing resources to reserves as well as add resources.

Exploration is also ongoing on properties in the Lake Victoria District, with drilling carried out in the Siga Hills area and additional drilling planned on this and other properties in 2005.

Exploration programs were also carried out in Russia and Central Asia during the quarter.

2005 OUTLOOK

As previously announced, the Company expects 2005 production of 5.4 - 5.5 million ounces at average total cash costs of $220-$230 per ounce, and has a 40% targeted growth plan and gold production target for 2007 of 6.8 - 7.0 million ounces at average total cash costs slightly above $200 per ounce. Production in the second half of 2005 is expected to exceed the first half of the year as the Lagunas Norte mine in the Alto Chicama District in Peru and the Veladero mine in Argentina are targeted to commence production in the third and fourth quarters, respectively. The first half of 2005 is expected to have lower production and higher cash costs, with the second half improving as Lagunas Norte and Veladero come on stream.

For the year, amortization is expected to be about $475 - $485 million, and administration expense is expected to be approximately $90 million, including an estimated $15 million in costs on adoption of new accounting rules that require the expensing of stock options beginning in the second half of 2005. Exploration, development and business development expense is expected to be approximately $150 million, with the possibility that positive results could lead to additional exploration spending. Capital expenditures for 2005 are anticipated to be approximately $743 million for development (excluding capitalized interest) and $245 million for sustaining capital.

(1) For an explanation of non-GAAP performance measures, refer to pages 40-41 of Management's Discussion and Analysis found in the Year-End Report 2004.

(2) For a breakdown of reserves by category and additional information on reserves, see the tables and related footnotes on pages 78-82.

(3) 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 / Form 40-F on file with Canadian provincial securities regulatory authorities and the US Securities and Exchange Commission.

Key Statistics

                                Three months ended       Years ended
                                      December 31,      December 31,
(in United States dollars)     --------------------------------------
(Unaudited)                           2004    2003      2004    2003
---------------------------------------------------------------------

Operating Results
Gold production
 (thousands of ounces)               1,169   1,301     4,958   5,510
Gold sold (thousands of ounces)      1,200   1,361     4,936   5,554

Per Ounce Data
 Average spot gold price           $   434   $ 392    $  409 $   363
 Average realized gold price           417     394       391     366
 Total cash costs(1),(3)               221     199       212     189
 Amortization(3)                        76      93        86      90
 Total production costs(3)             297     292       298     279
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Financial Results (millions)
Gold sales                         $   501   $ 536   $ 1,932 $ 2,035
Net income                             156      77       248     200
Operating cash flow                    120     140       506     519

Per Share Data (dollars)
 Net income (basic)                   0.30    0.14      0.47    0.37
 Net income (diluted)                 0.29    0.14      0.46    0.37
 Operating cash flow (basic)          0.23    0.25      0.95    0.97
 Operating cash flow (diluted)        0.22    0.25      0.95    0.97
Weighted average common shares
 outstanding (millions)(2)             534     535       534     535
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                                                As at          As at
                                         December 31,   December 31,
---------------------------------------------------------------------
                                                 2004           2003
---------------------------------------------------------------------

Financial Position (millions)
Cash and equivalents                         $  1,398         $ 970
Non-cash working capital                          141            34
Long-term debt                                  1,655           719
Shareholders' equity                            3,563         3,494
---------------------------------------------------------------------
(1) Comprises cash operating costs, royalties and production taxes.
(2) Fully diluted, includes shares issuable upon exchange of BGI
    (Barrick Gold Inc.) exchangeable shares.
(3) For an explanation of the use of non-GAAP performance measures
    refer to pages 40 to 41 of Management's Discussion and Analysis.



Production and Cost Summary

                                     Production (attributable ounces)
                              ---------------------------------------
                               Three months ended          Year ended
                                     December 31,        December 31,
                              ------------------- -------------------
(Unaudited)                        2004      2003      2004      2003
------------------------------------------------- -------------------
North America
 Open Pit                       372,706   324,951 1,381,315 1,559,461
 Underground                    133,833   147,199   561,345   551,664
------------------------------------------------- -------------------
 Goldstrike Property Total      506,539   472,150 1,942,660 2,111,125
 Eskay Creek                     73,328    83,387   289,568   352,070
 Round Mountain                  83,983    91,059   381,484   392,649
 Hemlo                           66,394    64,930   247,440   267,888
 Holt-McDermott                       -    23,203    54,578    89,515
 Marigold                        15,462    12,953    47,101    47,396
------------------------------------------------- -------------------
                               745,706   747,682 2,962,831 3,260,643
------------------------------------------------- -------------------
South America
 Pierina                         94,013   205,852   645,874   911,723
------------------------------------------------- -------------------
Australia/Africa
 Plutonic                        73,864    88,233   304,468   333,947
 Darlot                          27,931    37,336   140,235   154,977
 Lawlers                         28,595    27,355   110,374    99,223
 Kalgoorlie                     110,041   115,498   444,242   436,098
------------------------------------------------- -------------------
                                240,431   268,422   999,319 1,024,245
 Bulyanhulu                      88,562    78,737   349,865   313,551
------------------------------------------------- -------------------
                                328,993   347,159 1,349,184 1,337,796
------------------------------------------------- -------------------
Total                         1,168,712 1,300,693 4,957,889 5,510,162
------------------------------------------------- -------------------


                                            Total Cash Costs (US$/oz)
                                     --------------------------------
                                     Three months ended    Year ended
                                           December 31,  December 31,
                                     ------------------ -------------
(Unaudited)                                 2004   2003   2004   2003
------------------------------------------------------- -------------
North America
 Open Pit                                   $228   $250   $247   $233
 Underground                                 233    261    255    253
------------------------------------------------------- -------------
 Goldstrike Property Total                   230    253    249    238
 Eskay Creek                                   7     20     31     52
 Round Mountain                              263    190    221    173
 Hemlo                                       231    227    240    226
 Holt-McDermott                                -    210    197    239
 Marigold                                    193    187    197    171
------------------------------------------------------- -------------
                                             211    219    221    209
------------------------------------------------------- -------------
South America
 Pierina                                     146     89    106     83
------------------------------------------------------- -------------
Australia/Africa
 Plutonic                                    251    196    223    193
 Darlot                                      255    182    210    164
 Lawlers                                     249    268    246    249
 Kalgoorlie                                  241    215    231    209
------------------------------------------------------- -------------
                                             246    208    227    200
 Bulyanhulu                                  322    316    283    246
------------------------------------------------------- -------------
                                             265    230    241    210
------------------------------------------------------- -------------
Total                                       $221   $199   $212   $189
------------------------------------------------------- -------------


                                   Total Production Costs (US$/oz)(1)
                                   ----------------------------------
                                      Three months ended   Year ended
                                            December 31, December 31,
                                   --------------------- ------------
(Unaudited)                                  2004   2003   2004  2003
-------------------------------------------------------- ------------
 Direct mining costs at market
  foreign exchange rates                     $265   $225   $248  $210
 Gains realized on currency
  hedge contracts                            (24)   (18)   (19)  (12)
 By-product credits                          (35)   (21)   (30)  (21)
-------------------------------------------------------- ------------
Cash operating costs                          206    186    199   177
 Royalties                                     13     10     11     9
 Production taxes                               2      3      2     3
-------------------------------------------------------- ------------
Total cash costs                              221    199    212   189
 Amortization                                  76     93     86    90
-------------------------------------------------------- ------------
Total production costs                       $297   $292   $298  $279
-------------------------------------------------------- ------------
(1) For an explanation of the use of non-GAAP performance measures
    refer to pages 40 - 41 of Management's Discussion and Analysis.



MANAGEMENT'S DISCUSSION AND ANALYSIS ("MD&A")
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Core Business                                                       7
Executive Overview and 2005 Outlook                                 8
Vision and Strategy                                                 9
Capability to Deliver Results                                       9
Impact of Key Economic Trends                                      11
Results                                                            14
 Overview of 2004 versus 2003                                      14
 Consolidated Gold Production and Sales                            15
 Results of Operating Segments                                     16
 Other Costs and Expenses                                          22
 Cash Flow                                                         24
 Overview of 2003 versus 2002                                      25
 Balance Sheet                                                     26
 Quarterly Information                                             27
Off-Balance Sheet Arrangements                                     28
Liquidity                                                          30
Critical Accounting Policies and Estimates                         32
Non-GAAP Performance Measures                                      37
Cautionary Statement on Forward-Looking Information                38
Glossary of Technical Terms                                        42

This MD&A has been prepared as of February 9, 2005, and is intended to supplement and complement our unaudited financial statements and notes thereto for the year ended December 31, 2004 prepared in accordance with United States generally accepted accounting principles, or US GAAP (collectively, our "Financial Statements"). You are encouraged to review our Financial Statements in conjunction with your review of this MD&A. Additional information relating to the Company, including our Annual Information Form, is available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. For an explanation of terminology used in this MD&A that is unique to the mining industry, readers should refer to the glossary on page 42. All dollar amounts in this MD&A are in US dollars, unless otherwise specified. Unless otherwise indicated, the financial information in this MD&A has been prepared in accordance with US GAAP.

For the purposes of preparing this MD&A, we consider the materiality of information. Information is considered material if: (i) such information results in, and would reasonably be expected to result in, a significant change in the market price or value of Barrick Gold Corporation's shares; or (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision, or if it would significantly alter the total mix of information available to investors. Materiality is evaluated by reference to all relevant circumstances, including potential market sensitivity.

CORE BUSINESS

Barrick Gold Corporation ("Barrick") is one of the world's largest gold producers in terms of market capitalization, annual gold production and gold reserves. Our operations are concentrated in three regions: North America, Australia/Africa and South America.

Over the next two years, after production begins at four of our development projects, we are targeting our annual gold production to grow to 6.8-7.0 million ounces, with South America contributing an increasing proportion of our production. To grow our business, we are also exploring for gold in areas of the world outside of our three regions, particularly in Russia and Central Asia.

We generate revenue and cash flow from the production and sale of gold in both bullion and concentrate form. We sell our gold production through three primary distribution channels: gold bullion is sold in either the gold spot market or under gold sales contracts between Barrick and various third parties, and gold concentrate is sold to independent smelting companies. Selling prices reflect the market price for gold at the time an agreement is reached on pricing.

EXECUTIVE OVERVIEW AND 2005 OUTLOOK

Our share price appreciated by 6.65% in 2004, outperforming senior gold producers Newmont Mining Corporation, Placer Dome Inc., Anglogold Ashanti Limited and Gold Fields Limited, while the spot gold price appreciated by 5.54% over the same period.

In 2004, we produced 4.96 million ounces of gold at an average total cash cost of $212(1) per ounce, achieving our original guidance for the year. Higher gold production at Goldstrike Open Pit, Goldstrike Underground and Pierina more than offset lower production at the Plutonic, Round Mountain, Darlot and Eskay Creek mine sites. Despite an environment of rising commodity prices, appreciation of currencies against the US dollar, and increased royalty and mining tax payments driven by higher market gold prices, we met our original total cash costs per ounce guidance. Our currency and commodity hedge programs enabled us to mitigate the impact of commodity prices and currency exchange rates on total cash costs per ounce and operating cash flow.

We had earnings of $248 million ($0.46 per share) and generated operating cash flow of $506 million ($0.95 per share) in 2004. Our 2004 earnings and operating cash flow included an after-tax opportunity cost of $89 million ($0.17 per share) due to the voluntary reduction of our fixed-price gold sales contracts, with deliveries into contracts at prices below the prevailing market gold price, and corresponding lower revenues from gold sales. Earnings in 2004 also included tax credits totaling $227 million relating to the resolution of a Peruvian tax assessment and a change in tax status in Australia; as well as impairment charges recorded against long-lived assets of $139 million pre-tax. In 2004, we exceeded our target (of 1.5 million ounces) for reducing our fixed-price gold sales contracts with a reduction of 2 million ounces.

At year-end, we had proven and probable reserves of 89.1 million ounces of gold(2), based on a $375 gold price, after producing 5.5 million contained ounces. Reserve increases in 2004 were due to exploration projects at operating mines and development projects, and a lower cut-off grade as a result of a higher gold price assumption in 2004.

We continue to effectively support and shape our growth profile, including a focus on Russia and Central Asia. We made steady progress on the construction of four new mines, with three of them planned to enter production in 2005. Construction is proceeding on schedule for Lagunas Norte in Peru, Veladero in Argentina, Tulawaka in Tanzania, and Cowal in Australia. We are making progress in planning for our Pascua-Lama Project, which straddles the Chilean and Argentine border, our fifth development project, and East Archimedes which is located in Nevada, our sixth development project.

We have the capital resources to fund our development projects without the need for any equity dilution. During the year, we entered into a nine-year commitment in Argentina for $250 million in Veladero project financing and completed a $750 million public debenture offering. We also continued to optimize our capital structure through a share buyback program. At the same time, we have the gold mining industry's only A-rated balance sheet, as rated by Standard & Poor's.

During 2004, we implemented a number of initiatives to strengthen our organization, including making changes to the composition of our Board of Directors and governance practices as part of a commitment towards improved corporate governance. An organizational redesign was fully implemented in 2004. The new organizational design consolidated life-of-mine accountabilities under our Chief Operating Officer and established regional business units to add greater value to the global enterprise.

We expect 2005 gold production to be between 5.4-5.5 million ounces at an average total cash cost of $220-$230 per ounce, and we remain committed to our 40% targeted growth plan and gold production target for 2007 of 6.8-7.0 million ounces, at total cash costs slightly above $200 per ounce(3). The first and second quarters of 2005 are expected to have lower production and higher cash costs, with the second half of the year improving as Lagunas Norte and Veladero come on stream.

For the year, amortization is expected to be about $475-$485 million, and administration expense is expected to be approximately $90 million, including an estimated $15 million in costs on adoption of new accounting rules that require the expensing of stock options beginning in the second half of 2005. Exploration, development and business development expense is expected to be approximately $150 million, with the possibility that positive results could lead to additional exploration spending. Capital expenditures for 2005 are anticipated to be approximately $743 million for development excluding capitalized interest of $103 and $245 million for sustaining capital.

VISION AND STRATEGY

Our vision is to be the world's best gold company by finding, developing and producing quality reserves in a profitable and socially responsible manner.

The overriding goal of our strategy is to create value for our shareholders. To achieve this, cash flow from our mines is consistently reinvested in exploration, development projects and other strategic investments to work towards sustainable growth in production and cash flow. It can take a number of years for a project to move from the exploration stage through to mine construction and production. Our business strategy reflects this long lead time, but shorter-term priorities are also set for current areas of focus.

We use strategic relationships to share risk and expertise. Examples include joint venture arrangements for the Hemlo, Round Mountain and Kalgoorlie mines, and also for exploration programs in certain areas. We have investments in Highland Gold Mining PLC ("Highland Gold") and Celtic Resources Holdings PLC ("Celtic Resources"), as well as strategic alliances with both companies, as part of our plan to develop a business unit in Russia and Central Asia.

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Long-term Strategy  Focus Areas                Measures
 Elements
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Growth in reserves  Growth at existing         Additions to reserves
 and production      mine sites by finding new  and resources.
                     resources and converting
                     to reserves.              Consistent investment
                                                in exploration
                    Growth through successful   and development.
                     exploration focused
                     principally in key        Growth in annual
                     exploration districts      gold production.
                     (Goldstrike, Frontera,
                     Lake Victoria, Alto       Size of gold reserves.
                     Chicama) and in Russia/
                     Central Asia.             Construction progress
                                                versus schedules.
                    Execute the development
                     and construction of       Actual construction
                     Veladero, Lagunas          costs.
                     Norte, Tulawaka, Cowal,
                     Pascua-Lama and East      Status of regulatory
                     Archimedes.                requirements.

                    Develop a business unit
                     in Russia/Central Asia
                     through investments in,
                     and strategic alliances
                     with Highland Gold and
                     Celtic Resources.
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Operational          Control costs.            Total cash costs per
 excellence                                     per ounce.(1)
                      Global supply chain
                       management.             Amortization per
                                                ounce.(1)
                      Continuous improvement
                       initiatives.            Ore throughput.

                      Currency, interest rate  Equipment utilization
                       and fuel/propane hedge   statistics.
                       programs.

                     Optimize productivity     Liquidity - operating
                      through continuous        cash flow and
                      improvement               credit rating.
                      initiatives.

                     Effective assessment      Key balance sheet
                      and management of         ratios.
                      risk.

                     Effective capital
                      allocation and
                      management.

                     Sourcing of funding for
                      capital needs
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Strengthen the       Workforce - identify      Talent review and
 organization         and develop talent.       performance
                                                management.

                     Leadership development    Compliance with
                      and succession planning.  Sarbanes- Oxley
                                                Act.
                     Adopt best practices in
                      corporate governance,
                      including strengthening
                      internal controls.
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Responsible mining   Reinforce health and      Safety leadership and
                      safety culture.           other training
                                                initiatives.
                     Enhance environmental
                      performance, including   Medical aid injury
                      use of innovative         frequency.
                      technology to protect
                      the environment.         Environmental
                                                performance.
                     Maintain positive
                      community and
                      government relations.

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(1) Total cash costs per ounce and amortization per ounce are
    non-GAAP performance measures. For more information see pages
    40 to 41.

CAPABILITY TO DELIVER RESULTS

Resources and processes provide us with the capability to execute our strategy and deliver results. Our critical resources and processes are as follows:

    Critical Non-Capital Resources and Processes

    Experienced Management Team and Skilled Workforce

We have an experienced management team that has a proven track record in the mining industry. Our management team is critical to the achievement of our strategic goals, and we are focused on retaining and developing key members. The team is focused on the execution of our strategy and business plan. Strong leadership and governance are critical to the successful implementation of our core strategy. We are focusing on leadership development for key members of executive-level and senior mine management.

A skilled workforce is one of our most significant non-capital resources. Competition for appropriately trained and skilled employees is high in the mining industry. Employee retention, the ability to recruit skilled employees, and labor relations have a significant impact on the effectiveness of our workforce, and ultimately the efficiency and effectiveness of our operations. We maintain training programs to develop the skills that certain employees need to fulfill their roles and responsibilities. The remote nature of many mine sites can present a challenge to us in maintaining an appropriately skilled workforce. Priorities for our Human Resources group include strengthening our workforce and developing leadership and succession capabilities by focusing on attracting and retaining the best people, as well as enhancing the process for identifying and developing the leadership pool. We are implementing Human Resources systems solutions to enhance our ability to analyze and compare labor costs, productivity and other key statistics to better manage the effect our workforce has on our mining operations.

Health and Safety

As part of our commitment to corporate responsibility, we focus on continuously improving health and safety, systems and resources to help control workplace hazards. Continuous monitoring and integration of health and safety into decision-making enables us to operate effectively, while also focusing on health and safety. Key areas of focus include safety leadership through training and risk management practices; designing and enhancing processes and programs to ensure safety requirements are met; and communicating a safety culture as part of Company and personal core values.

Environmental

We are subject to extensive laws and regulations governing the protection of the environment, endangered and protected species, waste disposal and worker safety. We incur significant expenditures each year to comply with such laws and regulations. We seek to continuously implement operational improvements to enhance environmental performance. We also integrate environmental evaluation, planning, and design into the development stage of new projects to ensure environmental matters are identified and managed at an early stage.

Cost Control

Successful cost control depends upon our ability to obtain and maintain equipment, consumables and supplies as required by our operations at competitive prices. Through a culture of continuous improvement, we are also focusing on identifying and implementing steps to make our operations more effective and efficient.

Our Supply Chain group is focusing on improving long-term cost controls and sourcing strategies for major consumables and supplies used in our mining activities through global commodity purchasing teams. They are also focusing on knowledge sharing across our global business and implementing best practices in procurement. We are developing strategies to help us analyze and source consumables and supplies at the lowest cost over the life of a mine, as well as long-term alliances with suppliers.

Maintenance is a significant component of our operating costs. Our Global Maintenance team is working to reduce maintenance costs and increase equipment utilization through an internal maintenance community. Key areas of focus include setting standards for maintenance to optimize usage of mine equipment and enable cost-effective purchasing of mine equipment. They are implementing a global maintenance system to facilitate sharing of best practices and tracking of capital equipment statistics such as utilization, availability and useful lives.

Technology

Our Information Technology group monitors significant risks, such as security, the risk of failure of critical systems, risks relating to the implementation of new applications, and the potential impact of a systems failure. They are implementing strategies to manage these risks, including ongoing enhancements to security; monitoring of operating procedures; the effectiveness of system controls to safeguard data; evaluating technology resources; and maintaining disaster recovery plans. Other areas of focus include reducing technology diversity through standardizing systems solutions, and ongoing analysis of business needs and the potential benefits that can be gained from new applications.

Internal Controls

We maintain a system of internal controls designed to safeguard assets and ensure financial information is reliable. We undertake ongoing evaluations of the effectiveness of internal controls and implement control enhancements, where appropriate, to improve the effectiveness of controls. In 2004 and 2003, we focused on the design, testing and assessment of the effectiveness of internal controls to enable us to meet the certification and attestation requirements of the Sarbanes-Oxley Act. We presently file management certifications annually under Section 302 and Section 906 and expect to comply with the reporting requirements of Section 404 as required by law.

We also maintain a system of disclosure controls and procedures designed to ensure the reliability, completeness and timeliness of the information we disclose in this MD&A and other public disclosure documents.

Critical Capital Resources and Processes

We expect to fund capital requirements of about $2.5 billion over the next four years to finish construction activities at our development projects and for a power plant to supply our Goldstrike mine. Adequate funding is in place or available for all our development projects. We plan to put in place project financing for a portion of the expected construction cost of Pascua-Lama, however, if we are unable to do so because of unforeseen political or other challenges, we expect to be able to fund the capital required through a combination of existing capital resources and future operating cash flow.

We may also invest capital in Russia and Central Asia in 2005 to exercise certain rights we hold through agreements with Highland Gold and Celtic Resources to acquire interests in various mineral properties, and also to acquire future common shares of Celtic. These rights are described in note 10 to the Financial Statements. We expect that any capital required will be funded from a combination of our existing cash position and operating cash flow in 2005.

    IMPACT OF KEY ECONOMIC TRENDS

    1 Higher Market Gold Prices

Market gold prices are subject to volatile price movements over short periods of time, and are affected by numerous industry and macroeconomic factors that are beyond our control. The US dollar gold price has increased over the past few years, mainly due to the weakening of the US dollar against most major currencies, a decline in gold supply and an increase in demand for gold. The gold price over the last few years has had a high correlation with the US dollar, and we expect this correlation to continue.

With global financial markets experiencing significant volatility, political and security issues in a state of uncertainty, and with the US dollar - the "secure investment of choice" globally - coming under pressure, the global investment community has re-awakened to the potential for gold as an alternative investment vehicle. The past few years have seen a resurgence in gold as an investment vehicle, and we believe the prospects for gold to experience further investment interest are good, particularly in light of expected global economic/political uncertainties going forward. We believe that the introduction of more readily accessible and more liquid gold investment vehicles (such as gold exchange traded funds - "ETFs") will further enhance gold's appeal to investors.

Our revenues are significantly impacted by the market price of gold. We have historically used fixed-price gold sales contracts to provide protection in periods of low market gold prices, but since 2001 we have been focusing on reducing the level of outstanding fixed-price gold sales contracts. In 2004, we reduced our fixed-price gold sales contracts by 2 million ounces. The terms of our fixed-price gold sales contracts enable us to deliver gold whenever we choose over the primarily ten-year term of the contracts.

Our fixed-price gold sales contracts have allowed us to benefit from higher market gold prices, while the flexibility implicit in contract terms allows us to reduce the outstanding sales contracts over time.

Over the last three years, our realized gold sales prices have largely tracked the rising market gold price. Periods when our average realized price was below average market prices were primarily caused by us voluntarily choosing to deliver into gold sales contracts at prices lower than prevailing market prices to reduce outstanding gold sales contracts. We view the outlook for market gold prices to be positive due to our view of a declining US dollar and the present supply/demand fundamentals. In the future, we expect to be able to benefit from higher gold prices. The flexibility under our fixed-price gold sales contracts will enable us to deliver gold at market prices, however, if we choose to deliver a portion of our production under gold sales contracts, the prices for those deliveries may be below prevailing market prices.

2 Higher Market Silver Prices

Market silver prices are subject to volatile price movements over short periods of time, and are affected by numerous industry and macroeconomic factors that are beyond our control. Market silver prices have increased since late 2003 mainly due to increasing investment and industrial demand, along with higher world economic growth in 2004. Market prices fluctuated in 2004 as higher prices caused demand from jewelry and silverware fabrication to decrease. An expected decline in the use of silver for photographic film due to increases in digital photography may negatively impact market prices, but this trend has been partly offset by increased demand for photographic film in developing countries.

Market silver prices impact the value of silver produced as a by-product at some of our mines. When the silver price increases, by-product credits increase and our total cash costs per ounce decrease. In the past, we have used silver sales contracts to sell a portion of our annual silver production, which has helped to mitigate the impact of volatility in market prices, and we may use such contracts in the future. The flexibility under our silver sales contracts allows us to benefit from higher market silver prices by choosing to deliver silver production into the silver spot market. If we choose to deliver a portion of our silver production under silver sales contracts, the prices for those deliveries may be below prevailing market prices.

3 Weakening of the US dollar Against Major Currencies

The US dollar significantly depreciated against many major currencies in 2003 and 2004. The weakening of the US dollar was largely due to a record US trade deficit and low interest rates that, after taking into account inflation, provided negative real returns. As these conditions remain, and as the United States seeks to improve the competitiveness of its exports, further devaluation of the US dollar may occur.

Results of our mining operations in Australia and Canada, reported in US dollars, are affected by exchange rates between the Australian and Canadian dollar and the US dollar, because a portion of our annual expenditures are based in local currencies. A weaker US dollar causes costs reported in US dollars to increase, because local currency denominated expenditures have become more expensive in US dollars. We have a currency hedge position as part of our strategy to control costs by mitigating the impact of a weaker US dollar on Canadian and Australian dollar-based expenditures. Over the last three years, our currency hedge position has provided benefits to us in the form of hedge gains when contract exchange rates are compared to prevailing market exchange rates as follows: 2004 - $96 million; 2003 - $58 million; 2002 - $7 million. These gains are included in our operating costs.

At December 31, 2004, we had hedged local currency-based expenditures for about the next three years at average exchange rates that are more favorable than market rates in early 2005. The average rates for currency contracts designated against operating costs over the next three years are $0.64 for Australian dollar contracts and $0.72 for Canadian dollar contracts. Further details of our currency hedge position are included in note 16 to the Financial Statements. Beyond three years, most of our local currency denominated costs are subject to market currency exchange rates. If the trend of a weakening US dollar continues, we do not expect that this will significantly impact our results of operations over the next three years because of the protection we have under our currency hedge position. Beyond the next three years, our results could be affected, depending upon whether we add to our currency hedge positions in the future.

    4 Higher Energy Prices

    Diesel Fuel and Propane

Prices of commodities, such as diesel fuel and propane, are subject to volatile price movements over short periods of time and are affected by factors that are beyond our control. Annually, we consume about 1.3-1.7 million barrels of diesel fuel and 20-25 million gallons of propane at our mines. The cost of these commodities affects our costs to produce gold.

Crude oil is refined into diesel fuel that is used by us at our mines. Due mainly to global supply shortages and a weakening US dollar, crude oil prices rose in 2004, with a corresponding rise in diesel fuel prices. To control costs by mitigating the impact of rising diesel fuel prices, we put in place a fuel hedge position of 2.4 million barrels, a portion of estimated future diesel fuel consumption over the next three years with an average cap price of $39 per barrel and participation to an average floor price of $29 per barrel on about half the position. In 2004, we realized benefits in the form of hedge gains totaling $4 million when contract prices were compared to market prices. If the trend of increasing diesel fuel prices continues, this could impact future gold production costs, albeit mitigated by our present fuel hedge position. We also have a propane hedge position of 29 million gallons at an average price of $0.79 per gallon, that will help to control the cost of a portion of propane consumption at our mining operations over the next two years, and mitigate the impact of volatility in propane prices.

Electricity

Electricity prices have risen in recent years as a result of diesel fuel price increases and natural gas demand, as well as excess demand for electricity. Annually we consume about 1.3-1.5 billion kilowatts of electricity at our mines. Fluctuations in electricity prices or in electricity supply impact costs to produce gold. To control electricity costs, we are building a 115-megawatt natural gas-fired power plant in Nevada that will supply our Goldstrike mine, and reduce the mine's dependence on the regulated utility in Nevada. The sourcing of electricity from this power plant is expected to reduce total cash costs by an average of about $10 per ounce at Goldstrike over the remaining life of the mine, compared to recent costs of obtaining power from the regulated power utility. The plant is targeted to begin operating in fourth quarter 2005. We are also entering into long-term power supply arrangements for some mines; building powerlines to link into power grids; actively reviewing alternative sources of supply of electricity; and looking at other options across many of our larger mines and development projects.

5 Other Inflationary Cost Pressures

The mining industry has been experiencing significant inflationary cost pressures with increasing costs of labor and prices of consumables such as steel, concrete and tires. The cost of consumables such as steel and concrete mainly impacts mine construction costs. The costs of tires mainly impacts cash production costs. For steel in particular, world demand in excess of supply caused steel prices to increase significantly in 2004. We are directly and indirectly impacted by rising steel prices through the cost of new mine equipment and grinding media, as well as structural steel used in mine construction. We are focusing on supply chain management and continuous improvement initiatives to mitigate the impact of higher steel prices, including controlling usage and extending the life of plant and equipment, where possible.

6 Declining US dollar interest rates

US dollar interest rates have been relatively low by historic standards over the past three years due mainly to ongoing weak economic conditions; easy monetary policies; low inflation expectations; and increasing demand for low-risk investments. This lower interest-rate environment has enabled us to secure new sources of financing in 2004 at relatively attractive interest rates.

Volatility in interest rates mainly affects interest receipts on our cash balances ($1,398 million outstanding at the end of 2004), and interest payments on variable-rate long-term debt ($411 million outstanding at the end of 2004). Based on the relative amounts of variable-rate financial assets and liabilities at the end of 2004, declining interest rates would have a negative impact on our results.

In the future we expect these relative amounts to change as we invest cash in our development projects. The amount of cash balances may decrease from levels at December 31, 2004, subject to the amount of operating cash flow we generate in the future, as well as other sources of and uses for cash. In response to the volatility in interest rates, we have used interest rate swaps to alter the relative amounts of variable-rate financial assets and liabilities and to mitigate the overall impact of changes in interest rates. Management of interest-rate risk takes into account the term structure of variable-rate financial assets and liabilities. On $300 million of our cash balances, we have fixed the interest rate through 2008 at 3.3%. On our Bulyanhulu project financing, we have fixed the Libor-based rate for the remaining term of the debt at 4.45%. These interest rate swaps have provided benefits to us in the form of hedge gains, when rates under the swaps are compared to market interest rates, totaling $16 million in 2004, $13 million in 2003 and $6 million in 2002. In the future we may alter the notional amounts of interest rate swaps outstanding, as the relative amounts of variable-rate assets and liabilities change, to attempt to manage our exposure to interest rates.

Interest rates have historically been correlated with forward gold prices compared to current market prices. In periods of higher interest rates, forward gold prices have generally been higher. Consequently in periods of higher interest rates we have been able to secure more favorable future prices under fixed-price gold sales contracts.

RESULTS

Selected Annual Information
For the years ended December 31
($ millions, except per share and per ounce data in dollars)
---------------------------------------------------------------------
                                 Targets
                                     for
                                 2004(1)      2004     2003      2002
---------------------------------------------------------------------
                                  4,900-
Gold production ('000s oz)         5,000     4,958    5,510     5,695
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Gold sales
    '000s oz                                 4,936    5,554     5,805
    $ millions                              $1,932   $2,035    $1,967
---------------------------------------------------------------------
Market gold price(3)                           409      363       310
---------------------------------------------------------------------
Realized gold price(3)                         391      366       339
---------------------------------------------------------------------
Total cash costs(3),(4)        $ 205-215     $ 212     $189   $   177
---------------------------------------------------------------------
Amortization                     480-490       452      522       519
---------------------------------------------------------------------
Net income                                     248      200       193
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Net income per share
---------------------------------------------------------------------
Basic                                         0.47     0.37      0.36
---------------------------------------------------------------------
Diluted                                       0.46     0.37      0.36
---------------------------------------------------------------------
Dividends per share                           0.22     0.22      0.22
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Cash inflow (outflow)
---------------------------------------------------------------------
     Operating activities                      506      519       588
---------------------------------------------------------------------
     Capital expenditures       (900)(2)     (824)    (322)     (228)
---------------------------------------------------------------------
     Financing activities                      741    (266)      (61)
---------------------------------------------------------------------
Total assets                                 6,274    5,358     5,261
---------------------------------------------------------------------
Total long-term financial
 liabilities                                 1,707      789       819
---------------------------------------------------------------------
Gold reserves (millions of
 contained oz)                                89.1     85.9      86.9
---------------------------------------------------------------------
Fixed-price gold  sales contracts
     (millions of oz)                         13.5     15.5      18.1
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(1) As disclosed in the 2003 Annual Report.
(2) As disclosed in the second quarter 2004 report.
(3) Per ounce weighted average
(4) For an explanation of the use of non-GAAP performance measures,
    refer to pages 40 to 41 of Management's Discussion and Analysis.

    OVERVIEW OF 2004 VERSUS 2003

    Earnings

In 2004, higher cash production costs were offset by higher gold selling prices, but earnings were impacted by lower gold sales volumes. Based on the difference between average realized gold prices and average total production costs per ounce, the impact of lower sales volumes was to decrease pre-tax earnings by about $54 million.

As expected, gold production in 2004 was lower than 2003, and total cash costs per ounce were higher, mainly due to the expected mining of lower ore grades in 2004. Higher spot gold prices enabled us to realize higher selling prices for our gold production, and mitigate the impact on revenue of 11% lower sales volumes. We sold about 59% of our production into the spot market, and 41% into our gold sales contracts at prices lower than prevailing market prices. By voluntarily delivering into some of our gold sales contracts, we reduced our fixed-price gold sales contracts by 2 million ounces, and we accepted an $89 million opportunity cost, compared to delivering all of our production at market prices, with corresponding lower revenues from gold sales.

Earnings in 2004 benefited from $25 million lower pre-tax interest expense, a $203 million income tax recovery, and pre-tax gains on sale of assets totaling $34 million, partly offset by pre-tax impairment charges totaling $139 million on long-lived assets. Interest expense decreased by $25 million mainly due to amounts capitalized at development projects in 2004. The $203 million income tax recovery in 2004 included a credit of $141 million following the resolution of a tax assessment in Peru, and a credit of $81 million due to a change in tax status in Australia following the adoption of certain aspects of new tax legislation. Earnings in 2003 included a $60 million post-tax non-hedge derivative gain (2004 - $9 million post-tax) and deferred tax credits totaling $62 million, partly offset by post-tax charges of $11 million on settlement of the Inmet litigation and $17 million for the cumulative effect of accounting changes.

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Special Items - Effect on
 earnings increase (decrease)
 ($ millions)
For the years
 ended December 31                 2004         2003          2002
                              Pre- Post-   Pre-  Post-    Pre-  Post-
                               tax   Tax    tax    Tax    tax     Tax
---------------------------------------------------------------------
Non-hedge derivative
 gains (losses)               $  5  $  9  $  71 $   60 $  (6)   $   6
---------------------------------------------------------------------
Inmet litigation costs           -     -   (16)   (11)      -     (5)
---------------------------------------------------------------------
Gains on asset sales            34    28     34     27      8    (11)
---------------------------------------------------------------------
Impairment charges on
 long-lived assets           (139)  (96)    (5)    (3)   (11)       -
---------------------------------------------------------------------
Impairment charges on
 investments                   (5)   (5)   (11)   (11)      -       -
---------------------------------------------------------------------
Changes in asset retirement
 obligation cost estimates    (22)  (17)   (10)   (10)      -       -
---------------------------------------------------------------------
Cumulative effect of
 accounting changes              -     -   (17)   (17)      -       -
---------------------------------------------------------------------
Resolution of Peruvian
 tax assessment
---------------------------------------------------------------------
 Outcome of tax uncertainties   -    141      -      -      -       -
---------------------------------------------------------------------
 Reversal of other accrued
  costs                        21     15      -      -      -       -
---------------------------------------------------------------------
Deferred tax credits
---------------------------------------------------------------------
 Change in Australian
  tax status                     -    81      -      -      -       -
---------------------------------------------------------------------
 Release of valuation
  allowances/outcome of
  uncertainties                  -     5      -     62      -      22
---------------------------------------------------------------------
Total                        (106)   161     46     97    (9)      22
---------------------------------------------------------------------

Cash Flow

Our closing cash position at the end of 2004 increased by $428 million to $1,398 million. Operating cash flow decreased slightly in 2004 mainly due to the lower gold sales volumes and increases in supplies inventory at our development projects, partly offset by lower payments for income taxes. Capital expenditures increased by $502 million to $824 million mainly due to construction activity at our development projects. We received $974 million from new financing put in place primarily to fund construction at our development projects; we paid dividends totaling $118 million and we spent $95 million on our share buyback program.

    CONSOLIDATED GOLD PRODUCTION AND SALES

    Gold production and production costs

By replacing gold reserves depleted by production year over year, we can maintain production levels over the long term. If depletion of reserves exceeded discoveries over the long term, then we may not be able to sustain gold production levels. Reserves can be replaced by expanding known orebodies or by locating new deposits. Once a site with gold mineralization is discovered, it may take several years from the initial phases of drilling until production is possible, during which time the economic feasibility of production may change. Substantial expenditures are required to establish proven and probable reserves and to construct mining and processing facilities. Given that gold exploration is speculative in nature, some exploration projects may prove unsuccessful.

Our financial performance is affected by our ability to achieve targets for production volumes and total cash costs. We prepare estimates of future production and total cash costs of production for our operations. These estimates are based on mine plans that reflect the expected method by which we will mine reserves at each mine, and the expected costs associated with the plans. Actual gold production and total cash costs may vary from these estimates for a number of reasons, including if the volume of ore mined and ore grade differs from estimates, which could occur because of changing mining rates; ore dilution; metallurgical and other ore characteristics; and short-term mining conditions that require different sequential development of ore bodies or mining in different areas of the mine. Mining rates are impacted by various risks and hazards inherent at each operation, including natural phenomena, such as inclement weather conditions, floods, and earthquakes; and unexpected labor shortages or strikes. Total cash costs per ounce are also affected by changing waste-to-ore stripping ratios, ore metallurgy that impacts gold recovery rates, labor costs, the cost of mining supplies and services, and foreign currency exchange rates. In the normal course of our operations, we attempt to manage each of these risks to mitigate, where possible, the effect they have on our operating results.

In 2004, production from our portfolio of mines was in line with plan. As expected, production in 2004 was 10% lower than in 2003 primarily as a result of mining lower-grade ore at Goldstrike Open Pit, Pierina and Eskay Creek, partly offset by higher production at Bulyanhulu. Ounces sold decreased by 11% compared to 2003, consistent with the lower production levels. As our development projects commence production beginning in 2005, we are targeting annual gold production to rise to between 6.8 and 7.0 million ounces by 2007 at slightly above $200 per ounce total cash costs. In 2005, we expect to produce about 5.4-5.5 million ounces at total cash costs of between $220 and $230 per ounce.

Our Pierina and Eskay Creek mines produced about 17 million ounces of silver by-products in 2004. The incidental revenue from sales of silver is classified as a component of our reported "total cash costs per ounce" statistics, which is one of the key performance measures that we use to manage our business. At December 31, 2004, the silver content in our gold reserves was about 911 million ounces.

After production begins at Pascua-Lama, we expect that our annual silver production will increase significantly.

Consolidated total cash costs per ounce
For the years ended December 31 (in dollars per ounce)
                           Target
                         For 2004        2004        2003        2002
---------------------------------------------------------------------
Cost of sales(1)                       $  248      $  210      $  191
Currency hedge gains                     (19)        (12)         (1)
By-product credits                       (30)        (21)        (20)
---------------------------------------------------------------------
Cash operating costs                      199         177         170
---------------------------------------------------------------------
Royalties/mining taxes                     13          12           7
---------------------------------------------------------------------
                            $205-
Total cash costs(2)           215      $  212      $  189      $  177
---------------------------------------------------------------------
(1) At market currency exchanges rates.
(2) For an explanation of the use of non-GAAP performance measures,
    refer to pages 40 to 41 of Management's Discussion and Analysis.

Total cash costs for 2004 were in line with the original full-year guidance. As expected, total cash costs in 2004 were higher than in 2003, primarily due to processing lower-grade ore at Goldstrike Open Pit, Round Mountain and Pierina, combined with the effect of changes in average currency hedge rates on total cash costs at our Australian mines.

Revenue from gold sales

We realized an average selling price of $391 per ounce for our gold production in 2004, compared to $366 per ounce in 2003, when average market gold prices were lower. Our average realized price in 2004 reflects delivery of 59% of ounces sold into the spot market at market prices, and 41% into gold sales contracts at selling prices below prevailing market prices. We exceeded our target for reducing our fixed-price gold sales contracts by 0.5 million ounces in 2004, ending the year with a 2 million ounce reduction. The price realized for gold sales in 2005 and beyond will depend upon spot market conditions and the selling prices of any gold sales contracts into which we voluntarily deliver, which could be below prevailing spot market prices.

RESULTS OF OPERATING SEGMENTS

In our Financial Statements we present a measure of historical segment income that reflects gold sales at average consolidated realized gold prices, less segment operating costs and amortization of segment property, plant and equipment. Our segments include: producing mines, development projects and our corporate exploration group. For each segment, factors influencing consolidated realized gold prices apply equally to the segments, and therefore the factors have not been repeated in the discussion of individual segment results. We monitor segment operating costs using "total cash costs per ounce" statistics that represent segment operating costs divided by ounces of gold sold in each period. The discussion of results for each segment focuses on this statistic in explaining changes in segment operating costs. We also discuss significant variances from prior public guidance for gold production and total cash costs per ounce statistics for each segment.

Conducting mining activities in countries outside North America subjects us to various risks and uncertainties that arise from carrying on business in foreign countries including: uncertain political and economic environments; war and civil disturbances; changes in laws or fiscal policies; interpretation of foreign taxation legislation; and tax implications on repatriation of foreign earnings. We monitor these risks on an ongoing basis and mitigate their effects where possible, but events or changes in circumstances could materially impact our results and financial condition.

For development projects, we prepare estimates of capital expenditures; reserves and costs to produce reserves. We also assess the likelihood of obtaining key governmental permits, land rights and other government approvals. Estimates of capital expenditures are based on studies completed for each project, which also include estimates of annual production and production costs. Adverse changes in any of the key assumptions in these studies or other factors could affect estimated capital expenditures, production levels and production costs, and also the economic feasibility of a project. We take steps to mitigate potentially adverse effects of changes in assumptions or other factors. Prior to the commencement of production, the segment results for development projects reflect expensed mine development and mine start-up costs.

NORTH AMERICA

In 2004, production was at the low end of the original guidance for the year and total cash costs were better than the original guidance for the year. Total cash costs per ounce reflected lower costs than plan at the Goldstrike Open Pit and Eskay Creek, partly offset by higher costs at Round Mountain and Hemlo. Total cash costs for the North America region in 2004 were not significantly affected by the impact of a weakening US dollar on our Canadian mines or by rising fuel prices, because we mitigated these exposures through our currency and fuel hedge programs as part of our focus on controlling costs.

The region produced 9% less gold in 2004 compared with 2003 mainly because of the expected mining of lower-grade ore at the Goldstrike Open Pit and Eskay Creek. Compared to 2003, total cash costs per ounce were 6% higher in 2004, as a result of the processing of lower-grade ore.

In 2005, gold production from the North America region is expected to decline by 5% to about 2.8 million ounces due to the processing of lower-grade ore at Eskay Creek and following the depletion of reserves at Holt-McDermott in 2004. Total cash costs for the region are expected to increase by 10% to about $245 per ounce, mainly due to the processing of lower-grade ore at Round Mountain and Eskay Creek, as well as slightly higher costs at Goldstrike.

Goldstrike, United States

Segment income decreased by $1 million in 2004 from 2003 levels, mainly due to 14% lower gold sales volumes and 5% higher total cash costs, partly offset by 7% higher realized gold prices and 7% lower amortization expense.

Gold production at the open pit was slightly higher than plan in 2004, and total cash costs per ounce were slightly lower than plan. With the planned mining of lower-grade ore in 2004, partly offset by better gold recovery rates, open-pit production was 11% lower and total cash costs per ounce were 7% higher than in 2003. Revenues decreased by 8%, with a 14% decrease in ounces sold, due to the lower gold production levels in 2004, partly offset by a 7% increase in realized gold prices.

At the underground mine, production was 5% below the low end of the original range of guidance due to lower than expected availability of the Rodeo backfill raise, changes to mine sequencing, and higher maintenance costs due to unexpected repairs to electrical transformers. Total cash costs per ounce were at the high end of the original range of guidance for 2004 due to the lower production volumes and higher backfill haulage costs. Production was slightly higher than 2003 and total cash costs per ounce were similar to 2003, mainly due to better gold recovery rates and processing of slightly higher-grade ore in 2004.

Amortization expense decreased by $11 million in 2004 mainly due to the effect of lower gold sales volumes, combined with the impact of reserve increases at the beginning of 2004 that caused a $15 million decrease in amortization expense.

In 2004, the Nevada Public Utilities Commission approved our proposal to build a 115-megawatt natural gas-fired power plant in Nevada to supply our Goldstrike mine. The plant is targeted to commence operations in fourth quarter 2005. Highlights include:

- The construction permit for the foundation and buried services was received in fourth quarter 2004.

- Engineering work for the project is substantially complete and site preparation commenced in fourth quarter 2004. Construction of the power plant was subcontracted to a third-party contractor, and $18 million was spent on construction in 2004.

- We expect to file an application for a building construction permit in first quarter 2005.

- The natural gas supplier to the power plant is applying for permits to enable the construction of a short extension from an existing gas pipeline to the power plant site.

Eskay Creek, Canada

Segment income decreased by $13 million in 2004, mainly due to 18% lower gold sales volumes and 9% higher amortization expense, partly offset by 40% lower total cash costs and 7% higher realized gold prices. Revenues decreased by 14%, with an 18% decrease in ounces sold, due to the lower gold production levels in 2004, partly offset by a 7% increase in realized gold prices.

Production for 2004 was slightly lower than plan due to lower than expected ore grades and unscheduled backfill plant maintenance. Total cash costs per ounce were better than plan, mainly due to higher by-product credits caused by higher silver prices, partly offset by the impact of processing lower-grade ore and higher maintenance costs. Compared to 2003, as expected, production decreased by 18% because of a 4% decline in quantity of ore processed, and an 18% decline in ore grade. Total cash costs per ounce were 40% lower than 2003 mainly due to higher by-product credits in 2004 caused by higher silver prices, partly offset by the impact of lower ore grades.

Amortization expense increased by $4 million in 2004 mainly due to the impact of downward revisions to reserve estimates in 2004 that increased amortization rates, partly offset by the effect of lower gold sales volumes.

In fourth quarter 2004, the Eskay Creek mine was tested for impairment effective December 31, 2004. An impairment charge of $58 million was recorded, which is not included in the measure of segment income. For further details see page 35.

Round Mountain (50% owned), United States

Segment income decreased by $5 million in 2004, mainly due to 28% higher total cash costs, partly offset by 7% higher realized gold prices. Revenues increased by 6% mainly due to 7% higher realized gold prices.

Production was 4% higher than the high end of the original range of guidance for 2004, but at slightly higher total cash costs per ounce. Production was positively impacted by the continuing recovery of gold from leach pads where ore was placed in prior years. Higher total cash costs per ounce were mainly due to higher royalty costs, caused by higher market gold prices, as well as higher purchase costs and consumption of both cyanide and lime. Compared to 2003, gold production was 3% lower due to an expected decline in ore grades partly offset by an increase in quantities of ore processed. Total cash costs per ounce increased by 28% over 2003 as a result of mining lower-grade ore in 2004, higher royalties, and higher purchase costs and consumption of both cyanide and lime. Higher recovery rates of gold from leach pads in 2003 also contributed to the year on year change in total cash costs per ounce.

Amortization expense decreased by $3 million mainly due to slightly lower gold sales volumes combined with the effect of reserve increases at the beginning of 2004 on amortization rates.

Hemlo (50% owned), Canada

Segment income decreased by $3 million in 2004, mainly due to 10% lower gold sales volumes, combined with 6% higher total cash costs per ounce, partly offset by 7% higher realized gold prices. Revenues decreased by $5 million as 10% lower gold sales volumes were partly offset by 7% higher realized gold prices.

In 2004, production was 10% lower than plan and total cash costs per ounce were 13% higher than plan primarily because ground stability issues caused mining to occur in lower-grade areas of the mine. A decline in ore grades in 2004 was the primary reason for the lower gold production and higher total cash costs per ounce compared with 2003.

East Archimedes, United States

In September 2004, a decision was made to proceed with the East Archimedes project at the Ruby Hill mine site in Nevada. The project is an open-pit, heap leach operation exploiting the East Archimedes deposit, a deeper continuation of the ore mined previously at Ruby Hill. Construction capital is estimated at about $75 million over an expected two-year construction phase that begins once permitting is secured. The mining fleet has been ordered and permitting work is ongoing. The project has an expected life-of-mine strip ratio of 9:1 and assumes an average mining rate of 100,000 tons per day. The first gold pour is targeted for mid-2007.

SOUTH AMERICA

In 2004, all production was from the Pierina mine. Lagunas Norte and Veladero are expected to begin production and contribute to the South America region's results in the second half of 2005. In 2005, we expect production to increase by about 90% to about 1.2 million ounces, mainly due to the production start-up at Lagunas Norte and Veladero. Total cash costs are expected to increase by 25% to about $133 per ounce, mainly due to higher costs at Pierina following an increase in the stripping ratio from 60:1 to 86:1 and the impact of new production from Veladero and Lagunas Norte. The higher stripping ratio at Pierina mainly reflects the updating of the mine plan to incorporate additions to reserves at the end of 2004.

Pierina, Peru

Segment income decreased by $15 million in 2004 mainly due to 29% lower gold sales volumes, combined with 26% higher total cash costs per ounce, partly offset by 7% higher realized gold prices and lower amortization rates. Revenues decreased by $81 million as 29% lower gold sales volumes were partly offset by 7% higher realized gold prices.

In 2004, production was slightly higher than plan, however total cash costs were 15% higher than the upper end of the range of guidance for the year. The ability to access higher-grade ore at the mine was delayed due to a change in the mining plan to adjust for minor pit slope instability in the west pit wall. Higher fuel prices and lower by-product credits, due to lower quantities of silver contained in the ore processed in 2004, as well as processing of lower-grade ore, all contributed to higher total cash costs per ounce. Compared to 2003, production was 29% lower and total cash costs per ounce were 26% higher, due to the expected mining of lower-grade ore. Higher labor costs in 2004 also contributed to the increase in total cash costs over 2003.

Amortization expense decreased by $59 million mainly due to the lower gold sales volumes, combined with the effect of reserve increases at the beginning of the year that lowered amortization rates and caused amortization expense to decrease in 2004 by $9 million.

Lagunas Norte, Peru

In 2004, the segment loss of $12 million represents expensed mine development costs prior to May 1, 2004 when the project achieved the criteria to classify mineralization as a reserve for US reporting purposes, together with $3 million of expensed mine start-up costs. In 2003, the segment loss of $29 million represented expensed mine development costs for a full year.

The project remains on schedule for its first gold pour in the third quarter of 2005. The first three full years of production at Lagunas Norte are now expected to average approximately 800,000 ounces of gold annually at total cash costs of about $155 per ounce. The project's reserves increased by 2.0 million ounces, or 28%, to 9.1 million ounces at year-end 2004. Higher gold prices have allowed us to bring more ounces into production in the first three full years, but due to the lower ore grades associated with these ounces, our total cash costs per ounce have also increased. Highlights include:

- The Lagunas Norte/Alto Chicama Legal Stability Agreement between Barrick and the Peruvian Government was executed in January 2005. This agreement will provide greater certainty over the foreign exchange and fiscal administrative regime for 15 years, including real estate taxes, custom duties, VAT and excise taxes.

- Construction of the overall project was about 70% complete at the end of 2004, with about 4,000 workers on-site.

- Construction costs of $182 million were spent in 2004, of which $40 million relates to the purchase of the mine fleet, main auxiliary mine equipment and other mine equipment.

- Approval of the Environmental Impact Statement and principal construction permit was received in first quarter 2004.

    - Overliner material is being placed on the leach pad.

    - The power line was completed and energized in January 2005.

    Veladero, Argentina

In 2004, the segment loss of $5 million represents expensed mine start-up costs. In 2003, the segment loss of $18 million represented expensed mine development costs prior to October 1, 2003 when the project achieved the criteria to classify mineralization as a reserve for US reporting purposes.

The project remains on schedule for its first gold pour in the fourth quarter of 2005. The first three full years of production at Veladero are now expected to average approximately 700,000 ounces of gold annually at total cash costs of about $200(1) per ounce. The project's reserves increased by 1.7 million ounces, or 16%, to 12.8 million ounces at year-end 2004. Higher gold prices have allowed us to bring more ounces into production in the first three full years, but due to the lower ore grades associated with these ounces, our total cash costs per ounce have also increased. During 2004, we revised our construction capital estimate upwards to about $540 million from our previous estimate of $475 million due to a number of factors including: increases in prices for commodities, such as fuel, concrete and steel; exchange rate variations; higher labor costs; increased winter operations costs; and some preliminary changes to the scope of the project. Estimated future total cash costs are also being affected by similar cost pressures. We are evaluating a number of alternatives to control the cost increases, which may require some additional capital investment.

Highlights include:

- Construction costs of $284 million were spent in 2004 and the project is about 65% complete.

    - Internal mine road construction is complete.

    - Work on the truck shop facility was complete in December 2004.

- Steel erection on the secondary crusher is progressing on schedule and the main crusher components have been installed. Construction of the other plant facilities is well advanced.

- The assay lab was commissioned in fourth quarter 2004.

- Construction of the valley-fill heap leach facility embankment began in 2004 and was complete in February 2005.

- Pre-stripping activities have steadily improved in fourth quarter 2004 due to improvements in equipment availability, blasting techniques and the use of experienced shovel operators brought in to assist with mining activities and to train others.

Pascua-Lama, Chile/Argentina

In 2004, we made a decision to proceed with the development of the Pascua-Lama project in Chile/Argentina. The development is contingent on obtaining the necessary permits, approvals and fiscal regimes. Pascua-Lama is a large, low total cash cost, long-life asset that is expected to contribute to our production, cash flow and earnings for many years. We believe that few undeveloped gold deposits exist in the world that are of comparable size and quality to Pascua-Lama. Pascua-Lama is also expected to increase our leverage to silver. Furthermore, development of the Pascua-Lama project, combined with Veladero and the large associated land holdings with regional exploration potential, presents an opportunity to develop the area as one large gold district.

Annual production is estimated between 750,000-775,000 ounces of gold and about 30 million ounces of silver over the first ten years at estimated total cash costs of about $130-1401 per ounce. The project's gold reserves increased by 0.8 million ounces, or 5%, to 17.6 million ounces at year-end 2004. Pre-production construction costs are estimated at about $1.4-1.5 billion, excluding capitalized interest. A further $0.3 billion of capital is expected to be spent in the three years after production start-up for a plant expansion and flotation circuit to increase capacity from 33,000 to 44,000 metric tons per day. The permitting phase of the Pascua-Lama project is expected to be completed by the end of 2005. An expected three-year construction phase will begin once permitting has been completed and other fiscal and taxation matters have been finalized, with production targeted to commence in 2009.

In 2004, the segment loss of $4 million represents expensed mine start-up costs. In 2003, all project costs incurred were capitalized, resulting in no segment income or loss. We incurred capital expenditures of $35 million in 2004.

Recent focus has been on community/government relations, permitting, protocol implementation and tax stability. A mining protocol for the project, which straddles the border of Chile and Argentina, was signed by both governments. The protocol provides the framework for resolving certain issues such as border crossings by personnel and materials. Environmental impact assessments were filed by the end of 2004 and approval is sought by the end of 2005.

(1) Subject to exchange rate fluctuations and applicable export duties

AUSTRALIA/AFRICA

Gold production in 2004 was slightly higher than plan mainly due to the mining of higher-grade ore at Kalgoorlie, partly offset by slightly lower production than plan at Plutonic and Bulyanhulu. Total cash costs per ounce were 3% higher than the upper end of the range of original guidance for the year mainly due to higher costs at Plutonic and Bulyanhulu. Changes in market currency exchange rates in 2004 did not significantly impact total cash costs per ounce because we mitigated this exposure through our currency hedge program.

In 2004, gold production was 1% higher than 2003 as higher production at Kalgoorlie and Bulyanhulu was partly offset by lower production at Plutonic. Total cash costs per ounce were 14% higher than 2003 mainly because of the processing of lower-grade ore at Plutonic, combined with the effect of increases in average Australian dollar currency hedge rates. The average rates of currency hedge contracts vary year on year, which impacts reported total cash costs per ounce. The average exchange rate of hedge contracts in 2004 was $0.58 compared to $0.55 in 2003, which caused total cash costs per ounce to increase slightly in 2004.

In 2005, production from the Australia/Africa region is expected to increase by 7% to about 1.4 million ounces, mainly due to the production start-up at Tulawaka in first quarter 2005. Total cash costs per ounce are expected to increase by 7% to about $257 per ounce, mainly due to a 5% increase in the average exchange rate of Australian currency hedge contracts designated for 2005, but the average exchange rate remains significantly better than current spot exchange rates.

Kalgoorlie (50% owned), Australia

Segment income increased by $10 million in 2004, mainly due to the combined effect of 12% higher gold sales volumes and 7% higher realized gold prices, partly offset by 11% higher total cash costs per ounce.

Production was higher than plan in 2004 due to better-than-expected ore grades and gold recovery rates. Total cash costs per ounce were at the low end of the range of the guidance for the year as better ore grades and recovery rates were partly offset by higher than expected maintenance costs. Gold production was consistent with 2003 as ore tons processed and ore grades were similar to 2003. Total cash costs per ounce were 11% higher than 2003 primarily due to higher maintenance and labor costs, higher fuel prices, and the year on year effect of average exchange rates of currency hedge contracts.

Plutonic, Australia

Segment income decreased by $6 million in 2004 as 4% lower gold sales volumes, combined with 7% higher total cash costs, were partly offset by 7% higher realized gold prices. Revenues were higher in 2004 as 7% higher realized gold prices were partly offset by 4% lower gold sales volumes.

Production in 2004 was slightly lower than plan and total cash costs per ounce were 15% higher than the upper end of the range of guidance for the year primarily due to the mining of greater quantities of lower-grade open-pit ore. Temporary problems with ground conditions restricted mining of higher-grade ore in the Timor underground area for part of the year, and consequently the mine processed more open-pit ore than planned. Compared with 2003, gold production was 9% lower mainly due to a 12% decrease in ore tons processed. In 2003, ore tons processed were higher because a secondary mill was operating but this mill ceased operating in mid-2004. Total cash costs per ounce were 7% higher than 2003 mainly due to the combined effect of higher fuel, haulage and maintenance costs and the year on year effect of average rates of currency hedge contracts.

Bulyanhulu, Tanzania

Segment income was $6 million higher in 2004 as 14% higher gold sales volumes, combined with 7% higher realized gold prices, were partly offset by 15% higher total cash costs per ounce. Revenues were 24% higher in 2004 reflecting the higher gold sales volumes and realized gold prices.

Gold production in 2004 was slightly lower than plan and total cash costs per ounce were 9% higher than the upper end of the range of guidance for the year. Both production and total cash costs per ounce were impacted by higher ore dilution, which caused a 6% decline in the grade of ore processed compared with plan. Compared with 2003, gold production was 12% higher mainly due to a 15% increase in the tons of ore processed due to improved mill performance. Total cash costs per ounce were 15% higher than 2003 due to higher costs of mine site administration and underground maintenance, partly offset by higher copper by-product credits due to higher market copper prices.

Cowal, Australia

In 2004, the segment loss of $1 million represents expensed mine start-up costs. In 2003, all project costs incurred were capitalized, resulting in no segment income or loss.

The Cowal project in Australia is progressing well and production is expected to commence in first quarter 2006. The first full three years of production at Cowal are expected to be approximately 230,000 ounces of gold annually at total cash costs of about $240(1) per ounce. During 2004, we revised our construction capital estimate up to approximately $305 million due to factors including increases in commodity and consumable prices, and the very competitive construction labor market in Australia. Expected total cash costs per ounce are also being affected by similar cost pressures. Highlights include:

- Capital expenditures were $73 million, slightly higher than plan as expenditures, originally expected to occur in 2006, were brought forward to 2005 to realize construction efficiencies.

- The pipeline for water supply is complete.

- Bulk excavation for the primary crusher is substantially complete.

- Drilling of pit dewatering bores is complete and the design of additional bores for water supply is underway.

- Purchase orders have been placed for major mining equipment items.

- The construction contract for the electricity transmission line was awarded to a contractor. The contractor started construction on permitted sections in early 2005 and the timing of completion of the entire line is dependent upon receipt of the remaining permits.

- Earthworks is progressing with the northern tailings facility 80% complete and the tailings return pipeline substantially complete.

- The principal authorizations necessary for construction of Cowal have been obtained or are in process, with the additional required sectoral permits expected in due course.

Tulawaka (70% owned), Tanzania

In 2004, development costs were capitalized from January 1, 2004, when the project achieved the criteria to classify mineralization as a reserve for US reporting purposes, resulting in no segment income or loss. In 2003, all mine development costs were expensed as incurred.

The Tulawaka project is on schedule for its first gold pour in first quarter 2005. Our economic share under the terms of the joint venture of the first full three years of production at Tulawaka is expected to average about 90,000 ounces of gold annually at total cash costs of approximately $180 per ounce. Highlights include:

- Construction capital of $48 million (100% basis) was spent in 2004.

- Earthworks and site preparation were near completion at the end of 2004.

- The mining contract has been awarded to an external contractor.

- Process plant construction is well underway with the completion of power plant installation and commissioning, substantial completion of the SAG mill, concrete and structured steel installation and other site infrastructure buildings.

    - Plant handover is expected in first quarter 2005.

    (1) Subject to exchange rate fluctuations.

OTHER COSTS AND EXPENSES
Exploration, Development and Business Development Expense

For the years ended December 31
($ millions)                       2004           2003           2002
---------------------------------------------------------------------
Exploration costs
     North America                 $ 30           $ 22           $ 16
     Australia/Africa                40             22             15
     South America                   20             19              7
     Russia/Central Asia              5              4              4
     Other countries                  1              -              -
---------------------------------------------------------------------
                                     96             67             42
---------------------------------------------------------------------
Mine development costs
     Veladero                         -             18             20
     Lagunas Norte                    9             29             29
     Other projects                   5              6              3
---------------------------------------------------------------------
                                     14             53             52
---------------------------------------------------------------------
Mine start-up costs
     Veladero                         5              -              -
     Lagunas Norte                    3              -              -
     Cowal                            1              -              -
     Pascua-Lama                      4              -              -
---------------------------------------------------------------------
                                     13              -              -
---------------------------------------------------------------------
Business development/other           18             17             10
---------------------------------------------------------------------
                                    141            137            104
---------------------------------------------------------------------

In 2004, we spent more than both plan and the prior year on our exploration program as part of our strategy to grow our reserves. Higher activity at Goldstrike, Eskay Creek and Round Mountain led to an increase in expenditures for North America. Higher activity in Tanzania, primarily at the Buzwagi project, led to the increase in Australia/Africa.

Development costs are expensed until mineralization is classified as proven and probable reserves for US reporting purposes. At Lagunas Norte, we expensed development costs until May 1, 2004, and at Veladero, we expensed development costs until October 1, 2003, which are the dates when the projects achieved the criteria to classify mineralization as a reserve for US reporting purposes.

In 2005, we expect to spend $150 million on exploration, development and business development. Our exploration expense reflects our planned funding of our various exploration projects. We may spend more or less on these projects depending on the results of ongoing exploration activities, and we may also fund further exploration projects in addition to the presently planned projects for 2005.

Other Income Statement Variances

For the years ended December 31
($ millions, except per ounce data and percentages)

                    2004  2003  % change  Comments
---------------------------------------------------------------------
Amortization
---------------------------------------------------------------------
Absolute           $ 452 $ 522      -13%  11% lower sales volumes ,
 amount                                   combined with lower
                                          amortization rates per
                                          ounce. For 2005,
                                          amortization expense will
                                          reflect an expected 8-10%
                                          increase in gold sales
                                          volumes and a further
                                          expected decline in rates
                                          per ounce.
---------------------------------------------------------------------
Per ounce             86    90       -4%  Reserve increases effective
 (dollars)                                Jan.1, 2004 caused rates
                                          per ounce to decrease. For
                                          2005, rates per ounce are
                                          expected to decrease to
                                          between $80 and $85 due to
                                          reserve additions at the
                                          end of 2004, and the
                                          effect of an impairment
                                          charge recorded at Eskay
                                          Creek in 2004.
---------------------------------------------------------------------
Administration        71    73       -3%  Severance costs of $9
                                          million were incurred in
                                          2003. Higher regulatory
                                          compliance costs impacted
                                          2004. Costs in 2005 will
                                          increase due to the
                                          expensing of stock options
                                          in the  second half of the
                                          year, which is estimated to
                                          add about $15 million to
                                          costs.
---------------------------------------------------------------------
Interest income       25    31      -19%  The decrease in 2004 is due
                                          to lower average cash
                                          balances in 2004 compared
                                          to 2003. In 2005, interest
                                          income is expected to
                                          increase due to higher
                                          expected average cash
                                          balances.
---------------------------------------------------------------------
Interest costs
---------------------------------------------------------------------
   Incurred           60    49       22%  The impact of new
                                          financings in second half
                                          of 2004 caused
                                          an increase over 2003.
                                          Interest incurred is
                                          expected to increase to
                                          between $115 to $120
                                          million in 2005 due to new
                                          financing put in place
                                          in 2004.
---------------------------------------------------------------------
   Capitalized      (41)   (5)      720%  Higher amounts were
                                          capitalized at development
                                          projects due to
                                          construction costs
                                          capitalized in 2004, and
                                          capitalization at Pascua-
                                          Lama from July 1, 2004. In
                                          2005, we expect to
                                          capitalize about $103
                                          million at our
                                          development projects.
---------------------------------------------------------------------
   Expensed           19    44      -57%
---------------------------------------------------------------------


Other (Income) Expense

For the years ended December 31
($ millions)         2004   2003  Comments
Non-hedge
 derivative gains   $ (5) $ (71)  Gains in 2003 included $32 million
                                  on gold lease rate swaps (2004 -
                                  $16 million); and $18 million on
                                  currency hedge contracts
                                  that became ineffective for hedge
                                  accounting purposes.
---------------------------------------------------------------------
Impairment charge
 - Eskay Creek         58      -  See page 54.
---------------------------------------------------------------------
Impairment charge
 - Peruvian exploration
    properties         67      -  See page 54.
---------------------------------------------------------------------
Gains on asset sales (34)   (34)  Gains in 2004 and 2003 reflect the
                                   sale of various assets.
---------------------------------------------------------------------
Accretion expense      43     55
 and environmental
 remediation costs
 at closed mines
---------------------------------------------------------------------
Litigation costs        -     16  Costs in 2003 relate to the
                                  settlement of the Inmet litigation.
---------------------------------------------------------------------
(Gains) losses  on    (1)      7  Losses in 2003 mainly related to
 investments                      investments under a deferred
                                  compensation plan.
---------------------------------------------------------------------
Other items            30     23
---------------------------------------------------------------------
                    $ 158  $ (4)
---------------------------------------------------------------------


Income Taxes
---------------------------------------------------------------------
For the years ended December 31                       2004
---------------------------------------------------------------------
($ millions, except percentages)                           Income Tax
Effective income tax rates          Pre-Tax   Effective       expense
 on elements of income               income    tax rate    (recovery)
---------------------------------------------------------------------
Net income excluding elements
 below                                $ 118         28%          $ 33
Deliveries into gold sales
 contracts(1)                          (89)                         -
Non-hedge derivative gains
 (losses)                               (5)       (80%)           (4)
Other items                              21         30%             6
---------------------------------------------------------------------
                                       $ 45         78%          $ 35
---------------------------------------------------------------------
Tax only items:
Change in Australian tax status           -      (180%)          (81)
Outcome of tax uncertainties              -      (313%)         (141)
Release of deferred tax valuation
 allowances recorded in prior years       -       (11%)           (5)
Other items                               -       (25%)          (11)
---------------------------------------------------------------------
                                       $ 45      (451%)        $(203)
---------------------------------------------------------------------
(1) Impact of deliveries in a low tax-rate jurisdiction at contract
    prices below prevailing market prices.


---------------------------------------------------------------------
For the years ended Dec.31                       2003
---------------------------------------------------------------------
($ millions, except percentages)                           Income Tax
Effective income tax rates          Pre-Tax   Effective       expense
 on elements of income               income    tax rate    (recovery)
---------------------------------------------------------------------
Net income excluding elements
 below                                $ 116         20%          $ 23
Deliveries into gold sales
 contracts(1)                             -                         -
Non-hedge derivative gains
 (losses)                                71         15%            11
Other items                              35         34%            12
---------------------------------------------------------------------
                                      $ 222         21%          $ 46
---------------------------------------------------------------------
Tax only items:
Change in Australian tax status           -           -             -
Outcome of tax uncertainties              -           -             -
Release of deferred tax valuation
 allowances recorded in prior years       -       (17%)          (36)
Other items                           $   -        (2%)           (5)
---------------------------------------------------------------------
                                      $ 222          2%           $ 5
---------------------------------------------------------------------
(1)Impact of deliveries in a low tax-rate jurisdiction.

Our income tax expense or recovery is a function of an underlying effective tax rate applied to income plus the effect of other items that we track separately. The underlying effective rate increased to 28% in 2004 reflecting the higher market gold price environment, with an average market gold price of $409 per ounce. In 2005, we expect our underlying effective tax rate to decrease to about 22% due to a change in the geographic mix of gold production and therefore taxable income by jurisdiction. As gold prices increase, this underlying tax rate also increases, reaching a high of about 25% with market gold prices at or above $475 per ounce. The underlying rate excludes deferred tax credits from changes in valuation allowances; taxes on non-hedge derivative gains and losses; and the impact of deliveries into gold sales contracts in a low tax rate jurisdiction.

Deliveries into gold sales contracts in a low tax rate jurisdiction can distort the overall effective tax rate if market gold prices differ from the contract prices, but do not affect the absolute amount of income tax expense.

We record deferred tax charges or credits if changes in facts or circumstances affect the estimated tax basis of assets and therefore the amount of deferred tax assets or liabilities or because of changes in valuation allowances reflecting changing expectations in our ability to realize deferred tax assets. In 2004, we recorded a credit of $141 million on final resolution of a Peruvian tax assessment in our favor. We also recorded credits of $81 million due to a change in tax status in Australia following an election that resulted in a revaluation of assets for tax purposes; and also an election to file tax returns from 2004 onwards in US dollars, rather than Australian dollars. As well, $5 million of valuation allowance was released in Australia in 2004.

The interpretation of tax regulations and legislation and their application to our business is complex and subject to change. We have significant amounts of deferred tax assets, including tax loss carry forwards, and also deferred tax liabilities. Potential changes to any of these amounts, as well as our ability to realize deferred tax assets, could significantly affect net income or cash flow in future periods. For more information on tax valuation allowances, see page 37.

    CASH FLOW

    Operating Activities

Operating cash flow decreased by $13 million in 2004 to $506 million. The key factors that contributed to the year over year decrease are summarized in the table below.

Key drivers offactors affecting operating cash flow

For the years ended December 31
($ millions, except per                 Impact on
ounce data)                             operating
                           2004   2003  cash flow  Comments
---------------------------------------------------------------------
Gold sales volumes        4,936   5,55    $ (109)
     ('000s oz)                      4
---------------------------------------------------------------------
Realized gold prices      $ 391      $        123
     ($/oz)                        366
---------------------------------------------------------------------
Total cash costs ($/oz)(1)  212    189      (114)
---------------------------------------------------------------------
Sub-total                                   (100)  Refer to pages 15
                                                   and 16 for
                                                   explanations of
                                                   changes in gold
                                                   production and
                                                   sales.
---------------------------------------------------------------------
Income tax payments          45    111         66  Payments in 2005
                                                   are expected to be
                                                   similar to 2004.
---------------------------------------------------------------------
Non-cash working capital    141     34      (107)  Increases in
                                                   inventory
                                                   primarily reflect
                                                   supplies required
                                                   to support
                                                   construction at
                                                   development
                                                   projects.
                                                   Inventory is
                                                   expected to
                                                   increase again in
                                                   2005 at
                                                   development
                                                   projects
                                                   reflecting higher
                                                   ore in process
                                                   and in stockpiles.
                                                   Tax recoverable
                                                   increased in 2004
                                                   for goods and
                                                   services tax on
                                                   supplies and
                                                   material used in
                                                   construction at
                                                   development
                                                   projects. Amounts
                                                   are expected to
                                                   be recovered
                                                   after
                                                   production begins.
---------------------------------------------------------------------
Cost of Inmet                 -     86         86  Settlement reached
 Settlement                                        in 2003
---------------------------------------------------------------------
Interest expense             19     44         25  Increase in
                                                   amounts
                                                   capitalized to
                                                   development
                                                   projects in 2004.
---------------------------------------------------------------------
Effect of other factors                        17
---------------------------------------------------------------------
Total                                      $ (13)
---------------------------------------------------------------------

(1) Total cash costs per ounce is a non-GAAP performance measure.
    For more information, see pages 40 to 41.


Investing Activities

For the years ended December 31
                             ----------------------------------------
($ millions)          2005E   2004  2003  $ change  Comments
---------------------------------------------------------------------
Growth capital
 Expenditures(1)
---------------------------------------------------------------------
Veladero              $ 208  $ 284  $ 68     $ 216  Full year of
                                                    construction
                                                    activity in 2004.
---------------------------------------------------------------------
Lagunas Norte           147    182     4       178  Construction
                                                    started in Q2,
                                                    2004.
---------------------------------------------------------------------
Tulawaka                  3     48     1        47  Construction
                                                    started in Q1,
                                                    2004.
---------------------------------------------------------------------
Cowal                   268     73    24        49  Construction
                                                    started in Q1,
                                                    2004.
---------------------------------------------------------------------
Pascua-Lama              93     35     9        26  Increased
                                                    development
                                                    activity and
                                                    capitalization of
                                                    interest from Q3,
                                                    2004.
---------------------------------------------------------------------
Nevada Power Plant       84     18     -        18  Construction
                                                    started in Q4,
                                                    2004.
---------------------------------------------------------------------
East Archimedes          43      -     -         -  Construction
                                                    expected to start
                                                    in 2005.
---------------------------------------------------------------------
Sub-total             $ 846  $ 640 $ 106       534
---------------------------------------------------------------------
Sustaining capital
 expenditures
---------------------------------------------------------------------
North America                 $ 86  $ 80     $   6
---------------------------------------------------------------------
Australia/Africa                83   115      (32)  2003 was higher
                                                    due to a
                                                    transition to
                                                    owner mining at
                                                    Plutonic that
                                                    resulted in
                                                    equipment
                                                    purchases.
---------------------------------------------------------------------
South America                    8    17       (9)
---------------------------------------------------------------------
Other                            7     4         3
---------------------------------------------------------------------
Sub-total             $ 245  $ 184 $ 216      (32)  The increase in
                                                    2005 mainly
                                                    reflects capital
                                                    planned for 2004
                                                    at Goldstrike
                                                    that was deferred
                                                    into 2005, and
                                                    sustaining
                                                    capital at
                                                    Lagunas Norte
                                                    after production
                                                    begins.
---------------------------------------------------------------------
Total                $1,090   $824 $ 322       502
---------------------------------------------------------------------
(1)Includes construction costs and capitalized interest.

We plan to fund the expected capital expenditures for 2005 from a combination of our $1,398 million cash position at the end of 2004, and operating cash flow that we expect to generate in 2005.

Financing Activities

The most significant financing cash flows in 2004 were $974 million on issue of new long-term debt obligations, $49 million received on the exercise of employee stock options, dividend payments totaling $118 million, and $95 million spent repurchasing 4 million common shares under our share buyback program. We also made scheduled payments under our long-term debt obligations totaling $41 million in 2004.

    OVERVIEW OF 2003 VERSUS 2002

    Earnings

Earnings in 2003 were slightly higher than in 2002. We benefited from higher spot gold prices, which enabled us to realize a $27 per ounce higher selling price for our gold production (an increase in revenue of $150 million in comparison to 2002). In a higher spot gold price environment, we pay higher royalties, production taxes and income taxes. Royalties and production taxes increased by $5 per ounce, or $23 million, over the prior year, and our underlying effective income tax rate increased from 3% in 2002 to 20% in 2003, or an increase of $38 million.

As a result of the closure of five mines in 2002 on depletion of their reserves, we produced and sold 3% fewer ounces in 2003 compared to the prior year. These five closed mines generated a profit contribution, before tax, of $42 million in 2002.

Excluding the closed mines, cash operating costs per ounce excluding royalties and production taxes were $7 per ounce higher in 2003, mainly due to higher costs at Goldstrike Open Pit and Bulyanhulu, which added $39 million to our cash operating costs.

We invested $33 million more in exploration, mine development and business development in 2003 compared to 2002. Development costs are expensed until mineralization is classified as proven and probable reserves for US reporting purposes. In 2003, we expensed $54 million of development costs, mainly at Veladero and Lagunas Norte, compared with $52 million in 2002. A $24 million increase in exploration costs to $62 million accounts for most of the increase in exploration, development and business development expense year over year.

Earnings in both 2003 and 2002 included various items that significantly impacted the comparability of our results year on year. In 2003, the major items included gains of $71 million on non-hedge derivatives and gains totaling $34 million on the sale of various assets, offset by a $19 million higher charge for reclamation and closure costs following a change in accounting policy for these types of costs.

We recorded tax credits of $62 million in 2003. We released valuation allowances totaling $15 million in Argentina following the decision to begin construction at Veladero and the classification of mineralization there as a proven and probable reserve, $16 million in Australia due to higher levels of taxable income in a higher gold price environment, and $21 million in North America following a corporate reorganization. In 2002, we recorded a credit of $22 million due to the outcome of various tax uncertainties. These credits were offset by valuation allowances against unrecognized tax losses.

Cash Flow

We generated $69 million less operating cash flow in 2003 compared to 2002. Excluding the $86 million settlement of the Inmet litigation, our operating cash flow would have been $17 million higher in 2003 than 2002. Higher realized gold selling prices in 2003 were partly offset by higher total cash costs per ounce and higher payments of income taxes.

Both our cash expenditures for investing and financing activities increased in 2003 compared to 2002. In part, this was a result of increased capital spending with the construction start up at Veladero, as well as $154 million spent on our share buyback program.

BALANCE SHEET
Key Balance Sheet Ratios
Year ended December 31                           2004           2003
---------------------------------------------------------------------
Non-cash working capital ($ millions)(1)      $   141        $    34
Net debt (cash) ($ millions)(2)                 $ 288       $  (210)
Net debt:equity ratio(3)                       0.08:1       (0.06:1)
Current ratio(4)                               4.68:1         3.75:1
---------------------------------------------------------------------

(1) Represents current assets, excluding cash and equivalents, less
    current liabilities.
(2) Represents long-term debt less cash and equivalents.
(3) Represents net debt divided by shareholders' equity.
(4) Represents current assets divided by current liabilities.

We regularly review our capital structure with an overall goal of lowering our cost of capital, while preserving the balance sheet strength and flexibility that is important due to the cyclical nature of commodity markets, and ensuring that we have access to cash for strategic purposes. Following a review of our capital structure during 2003, we concluded that a share buyback program was consistent with this goal. In 2004, we repurchased 4 million shares at a total cost of $95 million which was in addition to repurchasing 9 million shares at a total cost of $154 million in 2003. The combined impact of new financing secured in 2004 to fund our development projects, and activity under the share buyback program in 2004, caused an increase in our net debt:equity ratio at the end of 2004.

Non-cash working capital increased in 2004 mainly due to a build-up of supplies inventory at our development projects to support normal operating activities, combined with an increase in tax recoverable that relates to goods and services taxes on various elements of mine construction costs that will be recoverable after production begins.

Our net cash position at the end of 2003 changed to net debt at the end of 2004 mainly because our investment in capital expenditures in 2004 exceeded operating cash flow.

    Shareholders' Equity

    Outstanding Share Data

As at February 9, 2005, 532.9 million of our common shares, one special voting share and 3.5 million Exchangeable Shares (exchangeable into 1.8 million of our common shares) were issued and outstanding. As at February 9, 2005, options to purchase 24.1 million common shares were outstanding under our option plans, as well as options to purchase 1.3 million common shares under certain option plans inherited by us in connection with prior acquisitions. For further information regarding the outstanding shares and stock options, please refer to the Financial Statements and our 2005 Management Information Circular and Proxy Statement.

Dividend Policy

In each of the last three years, we paid a total cash dividend of $0.22 per share - $0.11 in mid-June and $0.11 in mid-December. The amount and timing of any dividends is within the discretion of our Board of Directors. The Board of Directors reviews the dividend policy semi-annually based on the cash requirements of our operating assets, exploration and development activities, as well as potential acquisitions, combined with our current and projected financial position.

Comprehensive Income

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

In 2004, the other comprehensive loss of $15 million mainly included gains of $147 million on hedge contracts designated for future periods caused primarily by changes in currency exchange rates and fuel prices; offset by reclassification adjustments totaling $132 million for gains on hedge contracts designated for 2004 that were transferred to earnings in 2004; and a $32 million decrease in the fair value of investments.

Included in other comprehensive income at December 31, 2004 were unrealized pre-tax gains on currency hedge contracts totaling $321 million, based on December 31, 2004 market foreign exchange rates. The related hedge contracts are designated against operating costs and capital expenditures primarily over the next three years, and are expected to help protect against the impact of strengthening of the Australian and Canadian dollar against the US dollar. The hedge gains are expected to be recorded in earnings at the same time as the corresponding hedged operating costs and amortization of capital expenditures are also recorded in earnings.

QUARTERLY INFORMATION ($ millions, except where indicated)

                            2004                        2003
               --------------------------   -------------------------
                  Q4     Q3     Q2     Q1     Q4     Q3     Q2     Q1
Gold
 production
 ('000s oz)    1,169  1,232  1,279  1,278  1,301  1,479  1,467  1,263
---------------------------------------------------------------------
Gold
 sales
 ('000s oz)    1,199  1,267  1,222  1,247  1,362  1,505  1,395  1,292
---------------------------------------------------------------------
Gold
 sales         $ 501 $  500 $  454 $  477 $  536 $  549 $  491 $  459
---------------------------------------------------------------------
Income
 (loss)
 before
 taxes          (47)     37     15     40     73     57     44     48
---------------------------------------------------------------------
Income
 tax
 recovery
 (expense)      203   (5)     19   (14)      4   (22)     15    (2)
---------------------------------------------------------------------
Net income      156    32     34     26     77     35     59     29
---------------------------------------------------------------------
Net income per
 share - basic
 (dollars)     0.30   0.06   0.06   0.05   0.14   0.07   0.11   0.05
---------------------------------------------------------------------
Per ounce
 statistics
 (dollars)
---------------------------------------------------------------------
  Average spot
   gold
   price        434     401    393    408    392    364    347    352
---------------------------------------------------------------------
  Average
   realized
   gold price   417     395    372    382    394    365    352    355
---------------------------------------------------------------------
  Total
   cash
   costs(1)     221     218    209    199    199    180    185    194
---------------------------------------------------------------------
Cash inflow
 (outflow) from
---------------------------------------------------------------------
  Operating
   Activities   120     152    108    126    134    187     62    130
---------------------------------------------------------------------
  Investing
   activities (242)   (219)  (194)  (164)  (149)   (58)   (59)   (61)
---------------------------------------------------------------------
  Financing
   activities   742     154   (73)   (82)   (54)   (83)  (130)      1
---------------------------------------------------------------------
(1) For an explanation of the use of non-GAAP performance measures,
    refer to pages 40 to 41.

Our financial results for the last eight quarters reflect the following general trends: rising spot gold prices with a corresponding rise in prices realized from gold sales; and declining gold production, sales volumes, and rising total cash costs per ounce as a number of our mines were processing lower grade ore. These historic trends are discussed elsewhere in this MD&A. The quarterly trends are consistent with explanations for annual trends over the last two years. Beginning in the second half of 2005, we expect that the historic trend in gold production, sales volumes, and total cash costs per ounce will reverse as our lower cost mines in development begin production. Net income in each quarter also reflects the timing of various special items that are presented in the table on page 15.

FOURTH QUARTER RESULTS

Revenue for fourth quarter 2004 was $501 million on gold sales of 1.2 million ounces, compared to $536 million in revenue on gold sales of 1.36 million ounces for the prior-year quarter. During the quarter, spot gold prices averaged $434 per ounce. We realized an average price of $417 per ounce during the quarter compared to $394 per ounce in the prior-year quarter.

For the quarter, we produced 1.17 million ounces at total cash costs of $221 per ounce compared to 1.30 million ounces at total cash costs of $199 per ounce in the prior-year quarter.

Earnings for fourth quarter 2004 were $156 million ($0.30 per share) as compared to earnings of $77 million ($0.14 per share) in the prior-year quarter. This increase in earnings over the prior-year quarter reflects a $23 per ounce higher realized gold price, a $141 million tax recovery on final resolution of the Peruvian tax assessment and a $48 million deferred tax credit due to a change in tax status in Australia. These increases were partly offset by higher total cash costs, and an impairment charge for certain long-lived assets of $131 million pre-tax.

Effect on earnings increase (decrease)
---------------------------------------------------------------------
                                       Three months ended December 31
($ millions)                                  2004           2003
---------------------------------------------------------------------
                                Pre-tax  Post-tax   Pre-tax  Post-tax
---------------------------------------------------------------------
Non-hedge derivative gains         $  6     $   6     $  46     $  37
---------------------------------------------------------------------
Gains on asset sales                 29        24         5         3
---------------------------------------------------------------------
Litigation costs                      -         -      (16)      (11)
---------------------------------------------------------------------
Impairment charges on
 long-lived assets                (131)      (91)       (5)       (3)
---------------------------------------------------------------------
Impairment charges on
 investments                        (4)       (4)       (4)       (4)
---------------------------------------------------------------------
Change in asset retirement
 obligation estimates              (19)      (15)       (6)       (6)
---------------------------------------------------------------------
Resolution of Peruvian tax
 assessment
---------------------------------------------------------------------
 Outcome of tax uncertainties         -       141         -         -
---------------------------------------------------------------------
 Reversal of other accrued costs     21        15         -         -
---------------------------------------------------------------------
Deferred tax credits
---------------------------------------------------------------------
 Change in Australian tax status      -        48         -         -
---------------------------------------------------------------------
 Release of valuation allowances      -         -         -        41
---------------------------------------------------------------------
Total                             $(98)     $ 124     $  20      $ 57
---------------------------------------------------------------------

In the quarter, we generated operating cash flow of $120 million as compared to operating cash flow of $134 million in the prior-year period. Lower operating cash flow in the quarter primarily relates to the combined effect of lower gold sales volumes and higher total cash costs per ounce, partly offset by higher realized gold prices.

    OFF-BALANCE SHEET ARRANGEMENTS

    Gold Sales Contracts

We have historically used gold sales contracts as a means of selling a portion of our annual gold production. The contracting parties are bullion-banking counterparties whose business includes entering into contracts to purchase gold from gold mining companies. Since 2001, we have been focusing on reducing the level of outstanding gold sales contracts. In 2004, spot market sales made up the majority of our consolidated gold sales. The contracting parties are bullion-banking counterparties whose business includes entering into contracts to purchase gold from gold mining companies.

Fixed-Price Gold Sales Contracts

Allocation of Gold Sales Contracts to Support Pascua-Lama Financing and Construction

In July 2004, we announced a decision to proceed with the Pascua-Lama project ("Pascua-Lama") subject to receiving required permits and clarification of the applicable fiscal regimes from the governments of Argentina and Chile.

We currently expect to put in place third-party financing for up to $750 million of the expected $1.4-$1.5 billion initial construction cost of Pascua-Lama. In anticipation of building Pascua-Lama and in support of any related financing, we allocated 6.5 million ounces of existing fixed-price gold sales contracts specifically to Pascua-Lama (the "Pascua-Lama Gold Sales Contracts") in fourth quarter 2004. The allocation of these contracts will help reduce gold price risk at Pascua-Lama and will help secure the financing for its construction. We expect the allocation of these contracts to eliminate any requirement by lenders to add any incremental gold sales contracts in the future to support the financing of Pascua-Lama.

Key Aspects of Pascua-Lama Gold Sales Contracts
(as of December 31, 2004)
---------------------------------------------------------------------
Expected delivery dates.(1)                2009-2017, the term of the
                                                  expected financing.
---------------------------------------------------------------------
Future estimated average                                   $372/oz(2)
realizable selling price.
---------------------------------------------------------------------
Mark-to-market value                                ($949) million(3)
at December 31, 2004.
---------------------------------------------------------------------
(1) The contract termination dates are 2014-2017 in most cases, but
    we expect to deliver Pascua-Lama production against these
    contracts starting in 2009.
(2) Upon delivery of production from 2009-2017, the term of expected
    financing. Approximate estimated value based on current market US
    dollar interest rates and an average lease rate assumption of 1%.
(3) At a spot gold price of $436 per ounce and market interest rates.

The allocation of 6.5 million ounces of gold sales contracts to Pascua-Lama involves: i) the identification of contracts, in quantities, and for terms that mitigate gold price risk for Pascua-Lama during the term of the expected financing (contracts were chosen where the existing termination dates are spread between 2009, the targeted first year of production, and 2017, the expected retirement of financing for the project); ii) the segregation of these contracts from the remaining non-Pascua-Lama gold sales contracts (the "Corporate Gold Sales contracts"); iii) the eventual settlement of proceeds from these contracts for the benefit of Pascua-Lama production.

Barrick will continue to guarantee the Pascua-Lama Gold Sales Contracts, and the remaining Corporate Gold Sales Contracts. The Barrick guarantee is a critical component in allocating long-term contracts with termination dates out to 2009-2017 to support the future Pascua-Lama financing.

Through allocation of these gold sales contracts to Pascua-Lama, we significantly reduce capital risk. It protects the gold price during the term of the forecasted financing, while leaving the remaining reserves fully levered to spot gold prices. The contracts represent just over 35% of the 17.6 million ounces of gold reserves at Pascua-Lama, and do not impact any of the 643 million ounces of silver contained in gold reserves at Pascua-Lama.

These Pascua-Lama Gold Sales Contracts, while allocated to Pascua production, retain all the benefits of our gold sales Master Trading Agreements (MTAs) and are not subject to margining, downgrade or unilateral and discretionary "right to break" provisions. Furthermore, as part of our MTAs, these Pascua-Lama Gold Sales Contracts are not subject to any provisions regarding any final go-ahead decisions with Pascua-Lama construction, or any possible delay or change in the Pascua-Lama project.

Corporate Gold Sales Contracts

In addition to the gold sales contracts allocated against Pascua-Lama, we have Corporate Gold Sales Contracts, which at December 31, 2004 totaled 7.0 million ounces of fixed-price gold sales contracts. This represents slightly over one year of expected future gold production and approximately 10% of our proven and probable reserves, excluding Pascua-Lama.

Key Aspects of Corporate Gold Sales Contracts
(as of December 31, 2004)
---------------------------------------------------------------------
Current termination date of                       2014 in most cases.
contracts.
---------------------------------------------------------------------
Average estimated realizable                               $426/oz(1)
selling price in 2014
---------------------------------------------------------------------
Mark-to-market value at                            ($975) million(2).
December 31, 2004.
---------------------------------------------------------------------
(1) Approximate estimated value based on current market US dollar
    interest rates and an average lease rate assumption of 1%.
    Accelerating gold deliveries would likely lead to reduced
    contango that would otherwise have built up over time. 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.
(2) At a spot gold price of $436 per ounce, and market interest rates.

We also have an obligation to deliver gold by the termination date (currently 2014 in most cases). However, because we typically fix the price of gold under our gold sales contracts to a date that is earlier than the termination date of the contract (referred to as the "interim price-setting date"), the actual realized price on the contract termination date depends upon the actual gold market forward premium ("contango") between the interim price-setting date and the termination date. Therefore, the $426/oz price estimate could change over time due to a number of factors, including but not limited to: US dollar interest rates, gold lease rates, spot gold prices, and extensions of the termination date. This price, which is an average for the total Corporate Gold Sales Contract position, is not necessarily representative of the prices that may be realized each quarter for actual deliveries into gold sales contracts, in particular if we choose to settle any gold sales contract in advance of the termination date (which we have the right to do at our discretion). If we chose to accelerate gold deliveries, this would likely lead to reduced contango that would otherwise have built up over time (and therefore a lower realized price).

The gold market forward premium, or contango, is typically closely correlated with the difference between US dollar interest rates and gold lease rates. An increase or decrease in US dollar interest rates would generally lead to a corresponding increase or decrease in contango, and therefore an increase or decrease in the estimated future price of the contract at the termination date. Furthermore, the greater the time period between the interim price-setting date and the termination date, the greater the sensitivity of the final realized price to US dollar interest rates.

A short-term spike in gold lease rates would not have a material negative impact on us because we are not significantly exposed under our fixed-price gold sales contracts to short-term gold lease rate variations. A prolonged rise in gold lease rates could result in lower contango (or negative contango i.e. "backwardation"). Gold lease rates have historically tended to be low, and any spikes short-lived, because of the large amount of gold available for lending relative to demand.

In addition to the Corporate Gold Sales Contracts, we also have floating spot-price gold sales contracts under which we are committed to deliver 0.5 million ounces of gold over the next ten years at spot prices, less an average fixed-price adjustment of $52 per ounce. These floating spot-price contracts were previously fixed-price contracts, for which, under the price-setting mechanisms of the MTAs, we elected to receive a price based on the market gold spot price at the time of delivery adjusted by the difference between the spot price and the contract price at the time of such election.

Fixed-Price Silver Sales Contracts

(as of December 31, 2004)
---------------------------------------------------------------------
Millions of silver ounces                                        12.4
---------------------------------------------------------------------
Current termination date of silver sales
 contracts                                        2014 in most cases.
---------------------------------------------------------------------
Average estimated realizable selling price at
 2014 termination date                                    $8.50/oz(1)
---------------------------------------------------------------------
Mark-to-market value at December 31, 2004            ($14) million(2)
---------------------------------------------------------------------
(1) Approximate estimated value based on current market US dollar
    interest rates and an average lease rate assumption of 1%.
    Accelerating silver deliveries could potentially lead to reduced
    contango that would otherwise have built up over time. Barrick
    may choose to settle any silver 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.
(2) At a spot silver price of $6.82 per ounce.

We also have floating spot-price silver sales contracts under which we are committed to deliver 12 million ounces of silver over the next ten years at spot prices, less an average fixed-price adjustment of $0.96 per ounce. These floating spot-price contracts were previously fixed-price contracts, for which, under the price-setting mechanisms of the MTAs, we elected to receive a price based on the market silver spot price at the time of delivery adjusted by the difference between the spot price and the contract price at the time of such election.

Key terms of Gold and Silver Sales Contracts

In all of our MTAs, which govern the terms of gold and silver sales contracts with our 19 counterparties, the following applies:

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

- There are no credit downgrade provisions.

- We are not subject to any margin calls - regardless of the price of gold or silver.

- We have the right to settle our gold and silver sales contracts on two days notice at any time during the life of the contracts, or keep these forward gold and silver sales contracts outstanding for up to 15 years.

- At our option, we can sell gold or silver at the market price or the contract price, whichever is higher, up to the termination date of the contracts (currently 2014 in most cases).

The MTAs with our counterparties do provide for early close out of certain transactions in the event of a material adverse change in our ability or that of our principal hedging subsidiary's ability to perform our or its gold and silver delivery and other obligations under the trading agreements and related parent guarantees or a lack of gold or silver market, and for customary events of default such as covenant breaches, insolvency or bankruptcy. The principal financial covenants are:

- We must maintain a minimum consolidated net worth of at least $2 billion; currently, it is $3.6 billion. The MTAs exclude unrealized mark-to-market valuations in the calculation of consolidated net worth.

- We must maintain a maximum long-term debt to consolidated net worth ratio of 2:1; currently it is 0.51:1.

In most cases, under the terms of the MTAs, the period over which we are required to deliver gold is extended annually by one year, or kept "evergreen", regardless of the intended delivery dates, unless otherwise notified by the counterparty. This means that, with each year that passes, the termination date of most MTAs is extended into the future by one year.

As spot gold prices increase or decrease, the value of our gold mineral reserves and amount of potential operating cash inflows generally increases or decreases. The unrealized mark-to-market loss on our fixed-price forward gold sales contracts also increases or decreases. The mark-to-market value represents the cancellation value of these contracts based on current market levels, and does not represent an immediate economic obligation for payment by us. Our obligations under the gold forward sales contracts are to deliver an agreed upon quantity of gold at a contracted price by the termination date of the contracts (currently 2014 in most cases). Gold sales contracts are not recorded on our balance sheet. The economic impact of these contracts is reflected in our Financial Statements within gold sales based on selling prices under the contracts at the time we record revenue from the physical delivery of gold and silver under the contracts.

Change in the Fair Value of
Gold and Silver Sales Contracts


($ millions)                                     Gold(1)       Silver
---------------------------------------------------------------------
Unrealized loss at
 January 1, 2004                                $  1,725       $   20
---------------------------------------------------------------------
Impact of change in spot price(2)                    288           11
---------------------------------------------------------------------
Contango earned in the period                      (119)          (1)
---------------------------------------------------------------------
Impact of change in valuation inputs(3)              136            2
---------------------------------------------------------------------
Mark-to-market impact of deliveries into
 contracts                                          (89)          (6)
---------------------------------------------------------------------
Unrealized loss at December 31, 2004            $  1,941       $   26
---------------------------------------------------------------------
(1) Includes both the Pascua-Lama Gold Sales Contracts and the
    Corporate Gold Sales Contracts.
(2) From $415 per ounce to $436 per ounce for gold, and $5.92 per
    ounce to $6.82 per ounce for silver.
(3) Other than spot metal prices (i.e. interest rates and gold and
    silver lease rates).


Fair Value of Derivative Positions

At December 31 2004                                        Unrealized
($ millions)                                              Gain/(Loss)
---------------------------------------------------------------------
Corporate Gold Sales Contracts                              $   (949)
---------------------------------------------------------------------
Pascua-Lama Gold Sales Contracts                                (966)
---------------------------------------------------------------------
Floating Spot-Price Gold Sales Contracts                         (26)
---------------------------------------------------------------------
Silver Sales Contracts                                           (14)
---------------------------------------------------------------------
Floating Spot-Price Silver Sales Contracts                       (12)
---------------------------------------------------------------------
Foreign currency contracts                                        298
---------------------------------------------------------------------
Interest rate contracts                                            45
---------------------------------------------------------------------
Fuel contracts                                                      4
---------------------------------------------------------------------
                                                            $ (1,620)
---------------------------------------------------------------------

    LIQUIDITY

    Liquidity Management

Liquidity is managed dynamically, and factors that could impact liquidity are regularly monitored. The primary factors that affect liquidity include gold production levels, realized gold sales prices, cash production costs, future capital expenditure requirements, scheduled repayments of long-term debt obligations, our credit capacity and expected future debt market conditions. Working capital requirements have not historically had a material effect on liquidity. Counterparties to the financial instruments and gold sales contracts that we hold do not have unilateral and discretionary rights to accelerate settlement of financial instruments or gold sales contracts, and we are not subject to any margin calls.

We consider our liquidity profile to be sound, as there are no reasonably foreseeable trends, demands, commitments, events or circumstances expected to prevent us from funding the capital needed to implement our strategy.

Capital Resources(1)

($ millions)                                   2004     2003     2002
---------------------------------------------------------------------
Opening capital resource                    $ 1,977  $ 2,044  $ 1,733
New sources
 Operating cash flow                            506      519      588
 New financing facilities(2)                  1,056        -        -
---------------------------------------------------------------------
                                              3,539    2,563    2,321
---------------------------------------------------------------------
Allocations
 Growth capital(3)                            (627)    (107)     (29)
 Sustaining capital(4)                        (184)    (215)    (199)
 Dividends/share buyback                      (213)    (272)    (119)
 Other                                         (37)        1       70
---------------------------------------------------------------------
Closing capital resources                   $ 2,478  $ 1,970  $ 2,044
---------------------------------------------------------------------
Components of closing capital resources
Cash and equivalents                        $ 1,398  $   970  $ 1,044
Unutilized credit facilities                  1,080    1,000    1,000
---------------------------------------------------------------------
Total                                       $ 2,478  $ 1,970  $ 2,044
---------------------------------------------------------------------
(1) Capital resources include cash balances and sources of financing
    that have been arranged but not utilized.
(2) Includes the $250 million Veladero financing $750 million bond
    offering, and $56 million lease facility for Lagunas Norte.
(3) Growth capital represents capital invested in new projects to
    bring new mines into production.
(4) Sustaining capital represents capital required at existing
    mining operations.


Credit rating

Credit ratings at December 31, 2004, from major rating agencies
---------------------------------------------------------------------
Standard and Poor's                                                 A
---------------------------------------------------------------------
Moody's                                                          Baa1
---------------------------------------------------------------------
DBRS                                                                A
---------------------------------------------------------------------

Our ability to access unsecured debt markets and the related cost of debt financing is, in part, dependent upon maintaining an acceptable credit rating. A deterioration in our credit rating would not adversely affect existing debt securities or the terms of gold sales contracts, but could impact funding costs for any new debt financing. The key factors that are important to our credit rating include the following: our market capitalization; the strength of our balance sheet, including the amount of net debt and our debt-to-equity ratio; our net cash flow, including cash generated by operating activities and expected capital expenditure requirements; the quantity of our gold reserves; and our geo-political risk profile.

Contractual Obligations and Commitments
---------------------------------------------------------------------
($ millions)                                             Payments due
---------------------------------------------------------------------
At December 31, 2004                    2005    2006     2007    2008
---------------------------------------------------------------------
Contractual obligations
---------------------------------------------------------------------
 Long-term debt (1)                $    31   $   58  $   580  $    72
---------------------------------------------------------------------
 Asset retirement obligations (2)       35       28       17       41
---------------------------------------------------------------------
 Capital leases                          1        4        -        -
---------------------------------------------------------------------
 Operating leases                       16       16       16       17
---------------------------------------------------------------------
 Post-retirement benefits               16       15       16       16
---------------------------------------------------------------------
 Other post-retirement benefits          2        2        2        2
---------------------------------------------------------------------
Royalty arrangements (3)                61       66       66       67
---------------------------------------------------------------------
 Purchase obligations for supplies
  and consumables                       11        3        1        1
---------------------------------------------------------------------
 Power contracts (4)                     6        5        1        5
---------------------------------------------------------------------
 Capital commitments (5)               314        8        -        -
---------------------------------------------------------------------
                                       493      205      699      221
---------------------------------------------------------------------

Contractual Obligations and Commitments

($ millions)
                                                  2010 and
At December 31, 2004                     2009    thereafter     Total
---------------------------------------------------------------------
Contractual obligations
---------------------------------------------------------------------
 Long-term debt (1)                   $    17      $    903   $ 1,661
---------------------------------------------------------------------
 Asset retirement obligations (2)          33           190       344
---------------------------------------------------------------------
 Capital leases                             -             -         5
---------------------------------------------------------------------
 Operating leases                           5             6        76
---------------------------------------------------------------------
 Post-retirement benefits                  16            89       168
---------------------------------------------------------------------
 Other post-retirement benefits             2             9        19
---------------------------------------------------------------------
Royalty arrangements (3)                   60           510       837
---------------------------------------------------------------------
 Purchase obligations for supplies
  and consumables                           -             -        16
---------------------------------------------------------------------
 Power contracts (4)                        2             -        19
---------------------------------------------------------------------
 Capital commitments (5)                    -             -       322
---------------------------------------------------------------------
                                          142         1,707     3,467

    Contractual Obligations

    (1) Long-term debt

Our debt obligations do not include any subjective acceleration clauses or other clauses that enable the holder of the debt to call for early repayment, except in the event that we breach any of the terms and conditions of the debt or for other customary events of default. The Bulyanhulu and Veladero project financings are secured by assets at the Bulyanhulu Mine and Veladero project respectively. Other than this security, we are not required to post any collateral under any debt obligations. The terms of our debt obligations would not be affected by a deterioration in our credit rating.

(2) Asset retirement obligations

Amounts presented in the table represent the undiscounted future payments for the expected cost of asset retirement obligations.

(3) Royalties

Virtually all of the royalty arrangements give rise to obligations as we produce gold. In the event that we do not produce gold at our mining properties, we have no payment obligation to the royalty holders. The amounts disclosed are based on expected future gold production, using a $425 gold price assumption. The most significant royalty agreements are disclosed in note 5 to our Financial Statements.

(4) Power contracts

We enter into contracts to purchase power at each of our operating mines. These contracts provide for fixed prices, which, in certain circumstances, are adjusted for inflation. Some agreements obligate us to purchase fixed quantities per hour, seven days a week, while others are based on a percentage of actual consumption. These contracts extend through various dates in 2005 to 2009.

In addition to the purchase obligations set out in the table, we purchase about 1 billion kilowatt-hours annually at market rates. Under the terms of the Goldstrike Power contract, we purchase power based on actual consumption; this contract has an exit fee that we will pay when we commence commercial operation of our Nevada Power Plant and leave the utility.

(5) Capital commitments

Purchase obligations for capital expenditures include only those items where binding commitments have been entered into. Commitments at the end of 2004 mainly related to construction at our development projects and also the power plant in Nevada.

Capital expenditures not yet committed

We expect to incur about $2.5 billion to complete the development/construction of our present development projects over the next five years (Veladero, Lagunas Norte, Tulawaka, Cowal, Pascua-Lama and East Archimedes) and the Nevada Power Plant, as well as an average of approximately $175 million per year in sustaining capital at our producing mines over the same time period. A total of $322 million of these amounts had been committed at the end of 2004, with the remainder not yet committed.

Payments to maintain land tenure and mineral property rights

In the normal course of business, we are required to make annual payments to maintain title to certain of our properties and to maintain our rights to mine gold at certain of our properties. If we choose to abandon a property or discontinue mining operations, the payments relating to that property can be suspended, resulting in our rights to the property lapsing. The validity of mining claims can be uncertain and may be contested. Although we have attempted to acquire satisfactory title to our properties, some risk exists that some titles, particularly title to undeveloped properties, may be defective.

Contingencies - Litigation

We are currently subject to various litigation as disclosed in note 23 to the Financial Statements, and we may be involved in disputes with other parties in the future that may result in litigation. If we are unable to resolve these disputes favorably, it may have a material adverse impact on our financial condition, cash flow and results of operations.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management has discussed the development and selection of our critical accounting estimates with the Audit Committee of the Board of Directors, and the Audit Committee has reviewed the disclosure relating to such estimates in conjunction with its review of this MD&A. The accounting policies and methods we utilize determine how we report our financial condition and results of operations, and they may require management to make estimates or rely on assumptions about matters that are inherently uncertain.

Our financial condition and results of operations are reported using accounting policies and methods prescribed by US GAAP. In certain cases, US GAAP allows accounting policies and methods to be selected from two or more alternatives, any of which might be reasonable yet result in our reporting materially different amounts. Management exercises judgment in selecting and applying our accounting policies and methods to ensure that, while US GAAP compliant, they reflect our judgment of an appropriate manner in which to record and report our financial condition and results of operations.

Accounting Policy Changes

There were no changes in accounting policies in 2004 that significantly impacted our Financial Statements. As disclosed in note 2B to the Financial Statements, in 2005 we are required to adopt FAS 123R, Accounting for Stock-based Compensation, and we may be required to change our accounting policy for stripping costs once the Emerging Issues Task Force has completed its deliberations on EITF 04-6.

Critical Accounting Estimates

Certain accounting estimates have been identified as being "critical" to the presentation of our financial condition and results of operations because they require management to make particularly subjective and/or complex judgments about matters that are inherently uncertain; and there is a reasonable likelihood that materially different amounts could be reported under different conditions or using different assumptions and estimates. Critical accounting estimates include:

- Reserve estimates used to measure amortization of property, plant and equipment;

- Stripping ratios used to measure amortization of capitalized mining costs;

    - Impairment assessments of long-lived assets;

    - The fair value of asset retirement obligations; and

- The measurement of deferred income tax assets and liabilities and assessments of the amounts of valuation allowances recorded.

Reserve Estimates Used to Measure Amortization of Property, Plant and Equipment

We record amortization expense based on the estimated useful economic lives of long-lived assets. The estimate that most significantly affects the measurement of amortization is quantities of proven and probable gold reserves, because we amortize a large portion of property, plant and equipment using the units-of-production method. Reserves are estimated in accordance with the principles in Industry Guide No. 7, issued by the SEC. The estimation of quantities of gold reserves is complex, requiring significant subjective assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Changes in data and/or assumptions could cause reserve estimates to substantially change from period to period. Because mineral reserves are estimates, there is a risk that actual gold production could differ from expected gold production from our reserves. Factors that could cause actual gold production to differ include adverse changes in gold or silver prices, which could make the reserve uneconomic to mine; and variations in actual ore grade and gold and silver recovery rates from estimates.

A key trend that could reasonably impact reserve estimates is rising market gold prices. As market gold prices rise, the gold price assumption used in reserve estimation also rises. This assumption is closely related to the trailing three-year average market price. As this assumption rises, this could result in an upward revision to reserve estimates as material not previously classified as a reserve becomes economic at higher gold prices. Changes in reserve estimates are generally calculated at the end of each year and cause amortization expense to increase or decrease prospectively.

In general, amortization expense is more significantly impacted by changes in reserve estimates at underground mines than open-pit mines due to the following factors:

- Underground development costs incurred to access ore at underground mines are significant and amortized using the units-of-production method; and

- Reserves at underground mines are often more sensitive to gold price assumptions and changes in production costs. Production costs at underground mines are impacted by factors such as dilution, which can significantly impact mining and processing costs per ounce.

The mines where amortization expense is most sensitive to changes in reserve estimates are: Pierina, Goldstrike Underground, Eskay Creek and Bulyanhulu. These mines have significant carrying amounts of property, plant and equipment that are amortized using the units-of-production method and make up a significant proportion of property, plant and equipment at our operating mines.

Impact of Historic Changes in Reserve Estimates on Amortization

For the years ended
 Dec.31                    2004                       2003
($ millions, except
 reserves in
 millions of        Reserves Amortization      Reserves Amortization
 contained oz)      increase     increase      increase     increase
               (decrease)(1)   (decrease) (decrease)(1)   (decrease)
--------------------------------------------------------------------
Goldstrike
 Underground             0.2      $   (8)           0.6        $(10)
--------------------------------------------------------------------
 Open Pit                1.5          (7)           1.3          (6)
--------------------------------------------------------------------
Plutonic                 0.5          (2)           1.3          (4)
--------------------------------------------------------------------
Eskay Creek            (0.1)            4             -            -
--------------------------------------------------------------------
Kalgoorlie               0.9          (3)             -            -
--------------------------------------------------------------------
Pierina                  0.3          (9)             -            -
--------------------------------------------------------------------
(1) Each year we updated our reserve estimates as at the end of the
    year as part of our normal business cycle.  Reserve changes
    presented were calculated at the beginning of the applicable
    fiscal year and are in millions of contained ounces.

Stripping Ratios Used to Measure Amortization of Capitalized Mining Costs

Amortization of capitalized mining costs is recorded in the cost of inventory produced using a "stripping ratio". The stripping ratio is calculated as the total tons of ore and waste that must be mined compared to recoverable proven and probable gold reserves.

Both reserve estimates and the estimated tons of ore and waste that must be mined to produce reserves are estimates that are highly uncertain. The assumptions and uncertainty relating to reserve estimates are described on page 33 under "Reserve Estimates Used to Measure Amortization of Property, Plant and Equipment". The estimated tons of ore and waste that must be mined to produce reserves are calculated based on a mine plan that contemplates a design for the open pit relating to the mining of reserves. As reserve estimates change, the design of the open pit also changes, and both of these factors impact the stripping ratio.

Changes in this ratio affect the amortization of capitalized mining costs to inventory, and ultimately cost of sales when the inventory is sold. In general, stripping ratios are higher at open-pit mines where the ore body is deep below the surface of the earth.

Impact of Historic Changes in Stripping Ratios

                                               Amortization increase
($ millions,        Stripping Ratio used in            (decrease)(1)
 except ratios)          2005   2004   2003       2005   2004   2003
--------------------------------------------------------------------
Goldstrike
 Open Pit               127:1  109:1  112:1       $  5 $  (1)   $  -
--------------------------------------------------------------------
Pierina                  89:1   60:1   48:1         20      7      -
--------------------------------------------------------------------
(1) Impact of the year on year change in the stripping ratio used to
    amortize capitalized mining costs.

Stripping ratios are updated annually at the same time as reserve estimates are updated. At the end of 2004, the stripping ratios for Goldstrike Open-Pit and Pierina were updated to reflect the updated reserves at the end of 2004. The amount presented represents the estimated impact on annual amortization caused by these changes, based on production levels and sales volumes in 2004.

Impairment Assessments of Operating Mines, Development Projects and Exploration Stage Properties

We review and test the carrying amounts of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. We group assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For operating mines and development projects, all assets are included in one group. If there are indications that an impairment may have occurred, we prepare estimates of expected future cash flows for each group of assets. Expected future cash flows are based on a probability-weighted approach applied to potential outcomes.

Estimates of expected future cash flow reflect:

- Estimated sales proceeds from the production and sale of recoverable ounces of gold contained in proven and probable reserves;

- Expected future commodity prices and currency exchange rates (considering historical and current prices, price trends and related factors). In impairment assessments conducted in 2004 we used an expected future market gold price of $400 per ounce, and an expected future market US$:A$ exchange rate of $0.70 and US$:C$ exchange rate of $0.82;

- Expected future operating costs and capital expenditures to produce proven and probable gold reserves based on mine plans that assume current plant capacity, but exclude the impact of inflation;

- Expected cash flows associated with value beyond proven and probable reserves, which includes the expected cash outflows required to develop and extract the value beyond proven and probable reserves; and

- Environmental remediation costs excluded from the measurement of asset retirement obligations.

We record a reduction of a group of assets to fair value as a charge to earnings if expected future cash flows are less than the carrying amount. We estimated fair value by discounting the expected future cash flows using a discount factor that reflects the risk-free rate of interest for a term consistent with the period of expected cash flows.

Expected future cash flows are inherently uncertain, and could materially change over time. They are significantly affected by reserve estimates, together with economic factors such as gold and silver prices, and currency exchange rates, estimates of costs to produce reserves and future sustaining capital. The assessment and measurement of impairment excludes the impact of derivatives designated in a cash flow hedge relationship for future cash flows arising from operating mines and development projects.

Because of the significant capital investment that is required at many mines, if an impairment occurs, it could materially impact earnings. Due to the long-life nature of many mines, the difference between total estimated undiscounted net cash flows and fair value can be substantial. An impairment is generally only recorded when the carrying amount of a long-lived asset exceeds the total estimated undiscounted net cash flows. Therefore, although the value of a mine may decline gradually over multiple reporting periods, the application of impairment accounting rules could lead to recognition of the full amount of the decline in value in one period. Due to the highly uncertain nature of future cash flows, the determination of when to record an impairment charge can be very subjective. Management makes this determination using available evidence taking into account current expectations for each mining property.

For acquired exploration-stage properties, the purchase price is capitalized, but post-acquisition exploration expenditures are expensed. The future economic viability of exploration stage properties largely depends upon the outcome of exploration activity, which can take a number of years to complete for large properties. Management monitors the results of exploration activity over time to assess whether an impairment may have occurred. The measurement of any impairment is made more difficult because there is not an active market for exploration properties, and because it is not possible to use discounted cash flow techniques due to the very limited information that is available to accurately model future cash flows. In general, if an impairment occurs at an exploration stage property, it would probably have minimal value and most of the acquisition cost may have to be written down.

Impairment charges are recorded in other income/expense and impact earnings in the year they are recorded. Prospectively, the impairment could also impact the calculation of amortization of an asset. In fourth quarter 2004, we performed detailed impairment assessments for three groups of assets; the Eskay Creek mine in North America; various exploration-stage properties in Peru; and the Cowal mine in Australia.

For the Eskay Creek mine, the requirement to complete an impairment test was due to the following combination of factors: downward revisions to reserves in 2004; the continued weakening of the US dollar that impacts Canadian dollar operating costs measured at market rates; and upward revisions in asset retirement obligations at the end of 2004. On completion of this test, we concluded that the mine was impaired at the end of 2004, and we recorded a pre-tax impairment charge of $58 million.

For a group of Peruvian exploration-stage properties acquired as part of the Arequipa acquisition in 1996, we completed an impairment test in fourth quarter 2004 following the finalization of the exploration program for the year and based on an updated assessment of future plans for the properties. On completion of this test, we concluded that the properties were impaired at the end of 2004 and we recorded a pre-tax impairment charge of $67 million.

For the Cowal development project, an impairment test was completed following upward revisions to estimated capital and operating costs for the project; and the continued weakening of the US dollar that impacts the amounts reported in US dollars for Australian dollar expenditures, measured at market prices. On completion of this test we concluded that the mine was not impaired at the end of 2004.

We completed these impairment tests using a $400 average future gold price assumption. If a significant adverse change in the market gold price occurred that caused us to revise this price assumption downwards, the amount by which the Eskay Creek mine is impaired could increase and the conclusion on the Cowal impairment test could change, subject to the effect of changes in other factors and assumptions. The revised gold price assumption would have no impact on the Peruvian exploration-stage properties because the properties were fully written down at the end of 2004.

Fair Value of Asset Retirement Obligations (AROs)

AROs arise from the acquisition, development, construction and normal operation of mining property, plant and equipment, due to government controls and regulations that protect the environment on the closure and reclamation of mining properties. We record the fair value of an ARO in our Financial Statements when it is incurred and capitalize this amount as an increase in the carrying amount of the related asset. At operating mines, the effect is recorded as an adjustment to the corresponding asset carrying amount and results in a prospective increase or decrease in amortization expense. At closed mines, the adjustment is charged directly to earnings.

The fair values of AROs are measured by discounting the expected cash flows using a discount factor that reflects the risk-free rate of interest. We prepare estimates of the timing and amounts of expected cash flows when an ARO is incurred, which are updated to reflect changes in facts and circumstances, or if we are required to submit updated mine closure plans to regulatory authorities. In the future, changes in regulations or laws or enforcement could adversely affect our operations; and any instances of noncompliance with laws or regulations that result in fines or injunctions or delays in projects, or any unforeseen environmental contamination at, or related to, our mining properties could result in us suffering significant costs. We mitigate these risks through environmental and health and safety programs under which we monitor compliance with laws and regulations and take steps to reduce the risk of environmental contamination occurring. We maintain insurance for some environmental risks, however, for some risks coverage cannot be purchased at a reasonable cost. Our coverage may not provide full recovery for all possible causes of loss. The principal factors that can cause expected cash flows to change are: the construction of new processing facilities; changes in the quantities of material in reserves and a corresponding change in the life of mine plan; changing ore characteristics that ultimately impact the environment; changes in water quality that impact the extent of water treatment required; and changes in laws and regulations governing the protection of the environment. In general, as the end of the mine life becomes nearer, the reliability of expected cash flows increases, but earlier in the mine life, the estimation of an ARO is inherently more subjective. Significant judgments and estimates are made when estimating the fair value of AROs. Expected cash flows relating to AROs could occur over periods up to 40 years and the assessment of the extent of environmental remediation work is highly subjective. Considering all of these factors, the fair value of AROs can materially change over time.

In 2004, we recorded charges in AROs totaling $54 million, of which $32 million was recorded as an adjustment to the corresponding asset and $22 million was recorded as a charge to earnings. The $22 million charge to earnings mainly reflects increases in the expected cost of water treatment at certain closed mines. In 2003, we recorded revisions to AROs totaling $10 million for various closed mines, that were charged to earnings, and mainly reflect increases in the expected cost of water treatment.

AROs at December 31, 2004
($ millions)
Operating mines                                                $ 204
Closed mines                                                     148
Development projects                                              15
--------------------------------------------------------------------
Total                                                          $ 367
--------------------------------------------------------------------

At our operating mines, it is reasonably possible that circumstances could arise by the end of the mine life that will require material revisions to AROs. In particular, the extent of water treatment can have a material effect on the fair value of AROs, and the expected water quality at the end of the mine life, which is the primary driver of the extent of water treatment, can change significantly. We periodically prepare updated studies for certain mines, following which it may be necessary to adjust the fair value of AROs.

At one closed mine, the principal uncertainty that could impact the fair value of ARO is the manner in which a tailings facility will need to be remediated. In measuring the ARO, we have concluded that there are two possible methods that could be used. We have recorded the ARO using the more costly method, which we believe to be the most probable, but it is reasonably possible that a less costly method may ultimately prove to be technically feasible, in which case the ARO may decrease and this revision to the ARO would be recorded in earnings in the period of change.

The period of time over which we have assumed that water quality monitoring and treatment will be required also have a significant impact on AROs at closed mines. The amount of AROs recorded reflects the expected cost taking into account the probability of particular scenarios. The difference between the upper end of the range of these assumptions and the lower end of the range is significant, and consequently changes in these assumptions could have a material effect on the fair value of ARO's and future earnings in a period of change.

    Deferred Tax Assets and Liabilities

    Measurement of Timing Differences

We are periodically required to estimate the tax basis of assets and liabilities. Where applicable tax laws and regulations are either unclear or subject to varying interpretations, it is possible that changes in these estimates could occur that materially affect the amounts of deferred income tax assets and liabilities recorded in our Financial Statements. Changes in deferred tax assets and liabilities generally have a direct impact on earnings in the period of changes. The most significant such estimate is the tax basis of certain Australian assets following elections in 2004 under new tax regimes in Australia. These elections resulted in the revaluation of certain assets in Australia for income tax purposes. Part of the revalued tax basis of these assets was estimated based on a valuation completed for tax purposes. This valuation is under review by the Australian Tax Office ("ATO") and the amount finally accepted by the ATO may differ from the assumption used to measure deferred tax balances at the end of 2004.

Valuation Allowances

Each period, we evaluate the likelihood of whether some portion or all of each deferred tax asset will not be realized. This evaluation is based on historic and future expected levels of taxable income, the pattern and timing of reversals of taxable temporary timing differences that give rise to deferred tax liabilities, and tax planning initiatives. Levels of future taxable income are affected by, among other things, market gold prices, production costs, quantities of proven and probable gold reserves, interest rates and foreign currency exchange rates. If we determine that it is more likely than not (a likelihood of more than 50%) that all or some portion of a deferred tax asset will not be realized, then we record a valuation allowance against the amount we do not expect to realize. Changes in valuation allowances are recorded as a component of income tax expense or recovery for each period. The most significant recent trend impacting expected levels of future taxable and valuation allowances has been rising gold prices. A continuation of this trend could lead to the release of some of the valuation allowances recorded, with a corresponding effect on earnings in the period of release.

We released valuation allowances totaling $5 million in 2004 and $62 million in 2003. In 2004, the release was as a consequence of an election to consolidate our Australian operations into one tax group.

The $62 million release in 2003 was mainly a result of a corporate reorganization for tax purposes in North America and the impact of higher expected levels of taxable income in Australia and Argentina caused by rising market gold prices.

A further continuation of the recent trend of rising gold prices could lead to the release of some portion or all of the valuation allowances in the United States and Argentina.

--------------------------------------------------------------------
Valuation allowances at December 31
($ millions)                                     2004           2003
--------------------------------------------------------------------
United States                                   $ 189         $  181
Chile                                             141            146
Argentina                                          75             73
Canada                                             73             72
Tanzania                                           89             68
Australia                                           3              8
--------------------------------------------------------------------
Other                                               8              6
--------------------------------------------------------------------
                                                 $578           $554
--------------------------------------------------------------------

United States: most of the valuation allowances relate to the full amount of Alternative Minimum Tax credits, which have an unlimited carry-forward period. Increasing levels of future taxable income due to gold selling prices and other factors and circumstances may result in an adjustment to these valuation allowances.

Chile: valuation allowances relate to the full amount of tax assets in subsidiaries that do not have any present sources of income. In the event that these subsidiaries have sources of income in the future, we may release some or all of the allowances.

Argentina: a valuation allowance of $75 million has been set up against certain deferred tax assets in Argentina. Historically, we have had no income generating operations in Argentina, but following the production start-up at Veladero in 2005, various factors will affect future levels of taxable income in Argentina, including the volume of gold produced and sold, gold selling prices and costs incurred to produce gold. It is reasonably possible that an adjustment to a $34 million portion of this valuation allowance that relates to Veladero will be made in the near term.

Canada: substantially all of the valuation allowances relate to capital losses that will only be utilized if any capital gains arise.

Tanzania: considering the local fiscal regime applicable to mining companies and expected levels of future taxable income from the Bulyanhulu mine, a valuation allowance exists against a portion of the deferred tax assets. If we conclude that expected levels of future taxable income from Bulyanhulu will be higher, we may release some or all of the valuation allowance.

NON-GAAP PERFORMANCE MEASURES

For the years ended December 31
($ millions, except per ounce information)      2004           2003
--------------------------------------------------------------------
Total cash costs - per US GAAP(1)             $ 1,064        $ 1,065
--------------------------------------------------------------------
Accretion expense and reclamation costs at
 the operating mines                             (18)           (14)
--------------------------------------------------------------------
Total cash costs per ounce - per Gold
 Institute Production Cost Standard           $ 1,046        $ 1,051
--------------------------------------------------------------------
Ounces sold (thousands)                         4,936          5,554
--------------------------------------------------------------------
Total cash costs per ounce
 - per US GAAP (dollars)(2)                  $    216        $   192
--------------------------------------------------------------------
Total cash costs - per Gold Institute
 Production Cost Standard (dollars)(2)        $   212        $   189
--------------------------------------------------------------------
(1) Equal to cost of sales and other operating expenses less
    accretion expense and reclamation costs at non-operating mines.
(2) Per ounce weighted average.

We have included total cash costs per ounce data because these statistics are a key performance measure that management uses to monitor performance. We use these statistics to assess how well our producing mines are performing compared to plan and also to assess the overall effectiveness and efficiency of our mining operations. The inclusion of these statistics in MD&A helps an investor to assess performance "through the eyes of management". We understand that certain investors also use these statistics to assess our performance. The inclusion of total cash costs per ounce statistics enables investors to better understand year on year changes in production costs, which in turn affect profitability and the ability to generate operating cash flow for use in investing and other activities. We report total cash costs per ounce data calculated in accordance with The Gold Institute Production Cost Standard (the "Standard"). Adoption of the Standard is voluntary, but we understand that most senior gold producers follow the Standard when reporting cash cost per ounce data. The data does not have a meaning prescribed by US GAAP and therefore amounts presented may not be comparable to data presented by gold producers who do not follow the Standard. Total cash costs per ounce are derived from amounts included in the Statements of Income and 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. A US GAAP measure of costs per ounce has also been presented as required by securities regulations that govern non-GAAP performance measures. Commentary within this Management's Discussion and Analysis is focused on the "total cash costs" measure as defined by the Standard.

The data is 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. As can be seen from the table on page 38 reconciling the GAAP and non-GAAP measures, the GAAP and non-GAAP measures are not significantly different.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained or incorporated by reference in this Year End Report 2004, including any information as to our future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. 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 us, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets (such as the Canadian and Australian dollars versus the U.S. dollar); fluctuations in the spot and forward price of gold or certain other commodities (such as silver, copper, diesel fuel and electricity); changes in U.S. dollar interest rates or gold lease rates that could impact the mark to market value of outstanding derivative instruments and ongoing payments/receipts under interest rate swaps and variable rate debt obligations; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark to market risk); changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, the United States, Australia, Chile, Peru, Argentina, Tanzania, Russia or Barbados or other countries in which we do or may carry on business in the future; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions; operating or technical difficulties in connection with mining or development activities; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit rating; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this Year End Report 2004 are qualified by these cautionary statements. Specific reference is made to Barrick's most recent Form 40-F/Annual Information Form on file with the US Securities and Exchange Commission and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements.

We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

GLOSSARY OF TECHNICAL TERMS

AUTOCLAVE: Oxidation process in which high temperatures and pressures are applied to convert refractory sulphide mineralization into amenable oxide ore.

BACKFILL: Primarily waste sand or rock used to support the roof or walls after removal of ore from a stope.

BY-PRODUCT: A secondary metal or mineral product recovered in the milling process such as copper and silver.

CONCENTRATE: A very fine, powder-like product containing the valuable ore mineral from which most of the waste mineral has been eliminated.

CONTAINED OUNCES: Represents ounces in the ground before reduction of ounces not able to be recovered by the applicable metallurgical process.

CONTANGO: The positive difference between the spot market gold price and the forward market gold price. It is often expressed as an interest rate quoted with reference to the difference between inter-bank deposit rates and gold lease rates.

DEVELOPMENT: Work carried out for the purpose of opening up a mineral deposit. In an underground mine this includes shaft sinking, crosscutting, drifting and raising. In an open pit mine, development includes the removal of overburden.

DILUTION: The effect of waste or low-grade ore which is unavoidably included in the mined ore, lowering the recovered grade.

DORE: Unrefined gold and silver bullion bars usually consisting of approximately 90 percent precious metals that will be further refined to almost pure metal.

EXPLORATION: Prospecting, sampling, mapping, diamond-drilling and other work involved in searching for ore.

GRADE: The amount of metal in each ton of ore, expressed as troy ounces per ton or grams per tonne for precious metals and as a percentage for most other metals.

Cut-off grade: the minimum metal grade at which an orebody can be economically mined (used in the calculation of ore reserves).

Mill-head grade: metal content of mined ore going into a mill for processing.

Recovered grade: actual metal content of ore determined after processing.

Reserve grade: estimated metal content of an orebody, based on reserve calculations.

HEAP LEACHING: A process whereby gold is extracted by "heaping" broken ore on sloping impermeable pads and continually applying to the heaps a weak cyanide solution which dissolves the contained gold.

The gold-laden solution is then collected for gold recovery.

HEAP LEACH PAD: A large impermeable foundation or pad used as a base for ore during heap leaching.

LIBOR: The London Inter-Bank Offered Rate for deposits.

MILL: A processing facility where ore is finely ground and thereafter undergoes physical or chemical treatment to extract the valuable metals.

MINERAL RESERVE: See page 84 - Gold Mineral Reserves and Mineral Resources."

MINERAL RESOURCE: See page 84 - Gold Mineral Reserves and Mineral Resources."

MINING CLAIM: That portion of applicable mineral lands that a party has staked or marked out in accordance with applicable mining laws to acquire the right to explore for and exploit the minerals under the surface.

MINING RATE: Tons of ore mined per day or even specified time period.

MINING SEQUENCE: Sequence by which ore is extracted from the mine is based on the mine plan.

OPEN PIT: A mine where the minerals are mined entirely from the surface.

ORE: Rock, generally containing metallic or non-metallic minerals, which can be mined and processed at a profit.

OREBODY: A sufficiently large amount of ore that can be mined economically.

OUNCES: Troy ounces of a fineness of 999.9 parts per 1,000 parts.

RECLAMATION: The process by which lands disturbed as a result of mining activity are modified to support beneficial land use. Reclamation activity may include the removal of buildings, equipment, machinery and other physical remnants of mining, closure of tailings storage facilities, leach pads and other mine features, and contouring, covering and re-vegetation of waste rock and other disturbed areas.

RECLAMATION AND CLOSURE COSTS: The cost of reclamation plus other costs, including without limitation certain personnel costs, insurance, property holding costs such as taxes, rental and claim fees, and community programs associated with closing an operating mine.

RECOVERY RATE: A term used in process metallurgy to indicate the proportion of valuable material physically recovered in the processing of ore. It is generally stated as a percentage of the material recovered compared to the total material originally present.

REFINING: The final stage of metal production in which impurities are removed from the molten metal.

ROASTING: The treatment of ore by heat and air, or oxygen enriched air, in order to remove sulphur, carbon, antimony or arsenic.

STRIPPING: Removal of overburden or waste rock overlying an ore body in preparation for mining by open pit methods. Expressed as the total number of tons mined or to be mined for each ounce of gold.

TAILINGS: The material that remains after all economically and technically recoverable precious metals have been removed from the ore during processing.

Reconciliation of Total Cash Costs Per Ounce to Financial Statements
---------------------------------------------------------------------
                 Goldstrike-   Goldstrike-        Eskay         Round
                    Open Pit   Underground     Creek(2)      Mountain
---------------------------------------------------------------------
For the years
 ended
 December 31     2004   2003   2004   2003   2004  2003   2004   2003
---------------------------------------------------------------------
Total cash
 production
 costs - per
 US GAAP(1)    $336.5 $380.6 $141.2 $152.1   $9.3 $18.6  $84.5  $67.2
Accretion
 expense and
 reclamation
 costs at
 operating
 mines          (2.5)  (2.5)  (0.2)      -  (0.2) (0.3)  (1.6)  (1.6)
---------------------------------------------------------------------
Total cash
 production
 costs per
 Gold Institute
 Production
 Cost Standard $334.0 $378.1 $141.0 $152.1   $9.1 $18.3  $82.9  $65.6
---------------------------------------------------------------------
Ounces sold
 (thousands)    1,352  1,625    554    600    290   354    375    379
Total cash
 costs per
 ounce sold
 per US GAAP
 (dollars)(3)    $249   $234   $256   $253    $32   $53   $225   $177
---------------------------------------------------------------------
Total cash
 costs per
 ounce sold -
 per Gold
 Institute
 Production
  Cost Standard
   (dollars)(4)  $247   $233   $255   $253    $31   $52   $221   $173
---------------------------------------------------------------------

---------------------------------------------------------------------
                       Hemlo         Holt-     Marigold         Total
                                 McDermott                      North
                                                              America
---------------------------------------------------------------------
For the years
 ended
 December 31     2004   2003   2004   2003   2004  2003   2004   2003
---------------------------------------------------------------------
Total cash
 production
 costs - per
 US GAAP(1)     $57.6  $60.4  $12.1  $20.9   $9.1  $8.1 $650.3 $707.9
Accretion
 expense and
 reclamation
 costs at
 operating
 mines          (0.2)  (0.2)  (0.1)  (0.1)  (0.1) (0.1)  (4.9)  (4.8)
---------------------------------------------------------------------
Total cash
 production
 costs per
 Gold
Institute
 Production
 Cost Standard  $57.4  $60.2  $12.0  $20.8   $9.0  $8.0 $645.4 $703.1
---------------------------------------------------------------------
Ounces sold
 (thousands)      239    266     62     87     46    47  2,918  3,358
Total cash
 costs per
 ounce sold
 per US GAAP
 (dollars)(3)    $241   $227   $195   $240   $198  $172   $223   $211
---------------------------------------------------------------------
Total cash
 costs per
 ounce sold -
 per Gold
 Institute
 Production
  Cost Standard
   (dollars)(4)  $240   $226   $197   $239   $197  $171   $221   $209
---------------------------------------------------------------------

---------------------------------------------------------------------
                                     Total
                                     South
                     Pierina       America     Plutonic        Darlot
---------------------------------------------------------------------
For the years
 ended
 December 31     2004   2003   2004   2003   2004  2003   2004   2003
---------------------------------------------------------------------
Total cash
 production
 costs - per
 US GAAP(1)     $72.2  $78.9  $72.2  $78.9  $69.2 $62.6  $30.0  $25.4
Accretion
 expense and
 reclamation
 costs at
 operating
 mines          (3.5)  (3.2)  (3.5)  (3.2)  (0.1) (0.2)  (0.1)  (0.1)
---------------------------------------------------------------------
Total cash
 production
 costs per
 Gold
Institute
 Production
  Cost Standard $68.7  $75.7  $68.7  $75.7  $69.1 $62.4  $29.9  $25.3
---------------------------------------------------------------------
Ounces sold
 (thousands)      649    911    649    911    310   324    142    154
Total cash
 costs per
 ounce sold
 per US GAAP
 (dollars)(3)    $111    $87   $111    $87   $223  $193   $211   $165
---------------------------------------------------------------------
Total cash
 costs per
 ounce sold -
 per Gold
 Institute
 Production
  Cost Standard
   (dollars)(4)  $106    $83   $106    $83   $223  $193   $210   $164
---------------------------------------------------------------------
(1) Represents cost of sales and other operating costs (excluding
amortization and accretion expense and reclamation costs for non-
operating mines).

(2) Eskay Creek's total cash costs in 2004 are impacted by higher
silver prices which the Company treats as a by-product. Total cash
costs on a co-product basis are: 2004 - gold $202 per ounce, silver
$3.36 per ounce (2003 - gold $175 per ounce, silver $2.37 per ounce).

(3) Represents total cash production costs per US GAAP divided by
ounces sold.

(4) Represents total cash production costs per Gold Institute
Production Cost Standard divided by ounces sold.


---------------------------------------------------------------------
                                                                Total
                                                           Australia/
                     Lawlers    Kalgoorlie   Bulyanhulu        Africa
---------------------------------------------------------------------
For the years
 ended
 December 31     2004   2003   2004   2003   2004  2003   2004   2003
---------------------------------------------------------------------
Total cash
 production
 costs - per
 US GAAP(1)     $28.3  $23.8 $108.5  $88.1 $103.2 $77.1 $339.2 $277.0
Accretion
 expense and
 reclamation
 costs at
 operating
 mines          (0.1)  (0.1)  (1.5)  (1.5)  (7.5) (4.1)  (9.3)  (6.0)
---------------------------------------------------------------------
Total cash
 production
 costs per
 Gold Institute
 Production
 Cost Standard  $28.2  $23.7 $107.0  $86.6  $95.7 $73.0 $329.9 $271.0
---------------------------------------------------------------------
Ounces sold
 (thousands)      115     95    463    415    339   297  1,369  1,285
Total cash
 costs per
 ounce sold
 per US GAAP
  (dollars)(2)   $247   $250   $234   $212   $304  $260   $248   $216
---------------------------------------------------------------------
Total cash
 costs per
 ounce sold -
 per Gold
 Institute
 Production
 Cost Standard
 (dollars)(3)    $246   $249   $231   $209   $283  $246   $241   $210
---------------------------------------------------------------------
(1) Represents cost of sales and other operating costs (excluding
amortization and accretion expense and reclamation costs for non-
operating mines).

(2) Represents total cash production costs per US GAAP divided by
ounces sold.

(3) Represents total cash production costs per Gold Institute
Production Cost Standard divided by ounces sold.


Reconciliation of Amortization Costs per Ounce to Financial Statements

---------------------------------------------------------------------
For the years ended December 31                    2004   2003   2002
---------------------------------------------------------------------
Amortization expense per consolidated
 financial statements                              $452   $522   $519
Amortization expense recorded on
 property, plant and equipment not at
 operating mine sites                              (27)   (25)   (26)
---------------------------------------------------------------------
Amortization expense for per ounce calculation     $425   $497   $493
---------------------------------------------------------------------
Ounces sold (thousands)                           4,936  5,554  5,805
---------------------------------------------------------------------
Amortization per ounce (dollars)                    $86    $90    $85
---------------------------------------------------------------------


Consolidated Statements of Income

Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars, except per share data)
(Unaudited)
---------------------------------------------------------------------
                                             2004      2003      2002
---------------------------------------------------------------------
Gold sales (notes 3 and 4)                $ 1,932   $ 2,035   $ 1,967
---------------------------------------------------------------------
Costs and expenses
Cost of sales(1) (note 5)                   1,071     1,072     1,070
Amortization (note 3)                         452       522       519
Administration                                 71        73        50
Exploration, development
 and business development                     141       137       104
Other (income) expense (note 6)               158       (4)        16
---------------------------------------------------------------------
                                            1,893     1,800     1,759
---------------------------------------------------------------------
Interest income                                25        31        26
Interest expense (note 16B)                  (19)      (44)      (57)
---------------------------------------------------------------------
Income before income taxes and other items     45       222       177
Income tax recovery (expense) (note 7)        203       (5)        16
---------------------------------------------------------------------
Income before cumulative effect of
 changes in accounting principles             248       217       193
Cumulative effect of changes in
 accounting principles (note 2B)                -      (17)         -
---------------------------------------------------------------------
Net income for the year                   $   248   $   200   $   193
---------------------------------------------------------------------
Earnings per share data (note 8):
Income before cumulative effect of
 changes in accounting principles
    Basic                                 $  0.47   $  0.40   $  0.36
    Diluted                               $  0.46   $  0.40   $  0.36
Net income
    Basic                                 $  0.47   $  0.37   $  0.36
    Diluted                               $  0.46   $  0.37   $  0.36
---------------------------------------------------------------------

(1) Exclusive of amortization (note 5).

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



Consolidated Statements of Cash Flow

Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars)(Unaudited)
---------------------------------------------------------------------
                                             2004      2003      2002
---------------------------------------------------------------------
OPERATING ACTIVITIES
---------------------------------------------------------------------
Net income                                 $  248   $   200   $   193
Amortization                                  452       522       519
Deferred income taxes (note 18)             (225)      (49)      (75)
Inmet litigation settlement (note 6)            -      (86)         -
Gains on sale of long-lived assets (note 6)  (34)      (34)       (4)
Other items (note 9)                           65      (34)      (45)
---------------------------------------------------------------------
Net cash provided by operating activities     506       519       588
---------------------------------------------------------------------
INVESTING ACTIVITIES
Property, plant and equipment
  Capital expenditures (note 3)             (824)     (322)     (228)
  Sales proceeds                               43        40         8
Investments (note 10)
  Purchases                                  (47)      (60)         -
  Sales proceeds                                9         8         3
Proceeds on maturity of term deposits           -         -       159
---------------------------------------------------------------------
Net cash used in investing activities       (819)     (334)      (58)
---------------------------------------------------------------------
FINANCING ACTIVITIES
Capital stock
  Proceeds from shares issued on exercise
   of stock options                            49        29        83
  Repurchased for cash (note 19A)            (95)     (154)         -
Long-term debt (note 16B)
  Proceeds                                    974         -         -
  Repayments                                 (41)      (23)      (25)
Dividends (note 19A)                        (118)     (118)     (119)
Other items                                  (28)         -         -
---------------------------------------------------------------------
Net cash provided by (used in) financing
 activities                                   741     (266)      (61)
---------------------------------------------------------------------
Effect of exchange rate changes on cash
 and equivalents                                -         7         1
Net increase (decrease) in cash
 and equivalents                              428      (81)       469
Cash and equivalents at beginning
 of year (note 16A)                           970     1,044       574
---------------------------------------------------------------------
Cash and equivalents at end
 of year (note 16A)                       $ 1,398   $   970   $ 1,044
---------------------------------------------------------------------

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



Consolidated Balance Sheets

Barrick Gold Corporation
At December 31,
(in millions of United States dollars)(Unaudited)
---------------------------------------------------------------------
                                                       2004      2003
---------------------------------------------------------------------
ASSETS
Current assets
  Cash and equivalents (note 16A)                   $ 1,398   $   970
  Accounts receivable (note 11)                          58        56
  Inventories (note 11)                                 215       164
  Other current assets (note 11)                        286       178
---------------------------------------------------------------------
                                                      1,957     1,368
  Investments (note 10)                                 134       130
  Property, plant and equipment (note 12)             3,391     3,128
  Capitalized mining costs (note 13)                    226       235
  Other assets (note 14)                                566       497
---------------------------------------------------------------------
Total assets                                          6,274   $ 5,358
---------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable                                  $   335   $   245
  Other current liabilities (note 15)                    83       119
---------------------------------------------------------------------
                                                        418       364
  Long-term debt (note 16B)                           1,655       719
  Other long-term obligations (note 17)                 499       464
  Deferred income tax liabilities (note 18)             139       317
---------------------------------------------------------------------
Total liabilities                                     2,711     1,864
---------------------------------------------------------------------
Shareholders' equity
  Capital stock (note 19)                             4,129     4,115
  Deficit                                             (624)     (694)
  Accumulated other comprehensive income (note 20)       58        73
---------------------------------------------------------------------
Total shareholders' equity                            3,563     3,494
---------------------------------------------------------------------
Contingencies and commitments (notes 12D, 16 and 23)
---------------------------------------------------------------------
Total liabilities and shareholders' equity            6,274   $ 5,358
---------------------------------------------------------------------

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



Consolidated Statements of Shareholders' Equity

Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars)(Unaudited)
---------------------------------------------------------------------
                                             2004      2003      2002
---------------------------------------------------------------------
Common shares (number in millions)
At January 1                                  535       542       536
  Issued on exercise of stock options
   (note 21A)                                   3         2         6
  Repurchased (note 19A)                      (4)       (9)         -
---------------------------------------------------------------------
At December 31                                534       535       542
---------------------------------------------------------------------
Common shares
At January 1                              $ 4,115   $ 4,148   $ 4,062
  Issued on exercise of stock options
   (note 21A)                                  49        34        86
  Repurchased (note 19A)                     (35)      (67)         -
---------------------------------------------------------------------
At December 31                            $ 4,129   $ 4,115   $ 4,148
---------------------------------------------------------------------
Deficit
At January 1                              $ (694)   $ (689)   $ (763)
  Net income                                  248       200       193
  Adjustment on repurchase of common
    shares (note 19A)                        (60)      (87)         -
  Dividends (note 19A)                      (118)     (118)     (119)
---------------------------------------------------------------------
At December 31                            $ (624)   $ (694)   $ (689)
---------------------------------------------------------------------
Accumulated other comprehensive income
 (loss) (note 20)                         $    58   $    73   $ (125)
---------------------------------------------------------------------
Total shareholders' equity
 at December 31                             3,563   $ 3,494   $ 3,334
---------------------------------------------------------------------


Consolidated Statements of Comprehensive Income

---------------------------------------------------------------------
                                             2004      2003      2002
---------------------------------------------------------------------
Net income                                $   248   $   200   $   193
Other comprehensive income (loss),
 net of tax (note 20)                        (15)       198      (18)
---------------------------------------------------------------------
Comprehensive income                      $   233   $   398   $   175
---------------------------------------------------------------------

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

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Barrick Gold Corporation. Tabular dollar amounts in millions of United States dollars, unless otherwise shown. References to C$, A$ and EUR are to Canadian dollars, Australian dollars and Euros, respectively.

1. NATURE OF OPERATIONS

Barrick Gold Corporation ("Barrick" or the "Company") engages in the production and sale of gold from underground and open-pit mines, including related activities such as exploration and mine development. Our operations are mainly located in North America, South America, Australia and Africa.

    2. SIGNIFICANT ACCOUNTING POLICIES

    A Basis of preparation

These financial statements are prepared under United States generally accepted accounting principles ("US GAAP"). We also include financial statements prepared under Canadian GAAP in our Proxy Statement that we file with various Canadian regulatory authorities. To ensure comparability of financial information, certain prior-year amounts have been reclassified to conform with the current year presentation.

Consolidation policy

These financial statements reflect consolidation of the accounts of Barrick and other entities in which we have a controlling financial interest. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities through arrangements that do not involve voting interests, where the entities are variable interest entities (VIEs) under the principles of FIN 46R. Intercompany balances and transactions are eliminated on consolidation.

A VIE is defined as an entity that by design either lacks enough equity investment at risk to permit the entity to finance its activities without additional subordinated financial support from other parties; has equity owners who are unable to make decisions about the entity; or has equity owners that do not have the obligation to absorb the entity's expected losses or the right to receive the entity's expected residual returns. VIEs can arise from a variety of entities or legal structures.

FIN 46R requires a variable interest holder (i.e. a counterparty to a VIE) to consolidate the VIE if that party will absorb a majority of the expected losses of the VIE, receive a majority of the residual returns of the VIE, or both. This party is considered the primary beneficiary of the entity. The determination of whether a variable interest holder meets the criteria to be considered the primary beneficiary of a VIE requires an evaluation of all transactions by the entity. The foundation for this evaluation is a calculation prescribed by FIN 46R.

We hold our interests in the Round Mountain, Hemlo, Marigold and Kalgoorlie mines through unincorporated joint ventures. Under long-standing practice for extractive industries, we use the proportionate consolidation method to account for our interests in these unincorporated joint ventures.

Our 70% interest in the Tulawaka development project is held through an unincorporated joint venture. In years prior to 2004 we used the proportionate consolidation method to account for our interest. In 2004, we entered into an agreement to finance the other joint venture partner's share of mine construction costs, which caused us to reconsider whether this joint venture is a VIE. We concluded that the joint venture is in fact a VIE, and that Barrick is the primary beneficiary. From June 2004 onwards, we consolidated this joint venture using the principles of FIN 46R. The creditors of this VIE have no recourse to the general credit of Barrick.

Foreign currency translation

In 2003, various changes in economic facts and circumstances led us to conclude that the functional currency of our Argentinean operations is the United States dollar rather than the Argentinean Peso. These changes included the completion of the Veladero mine feasibility study, the expected denomination of selling prices for future gold production and the occurrence of higher amounts of US dollar expenditures.

Following this change the functional currency of all our operations is the US dollar. We re-measure non-US dollar balances as follows:

- non-monetary assets and liabilities using historical rates;

- monetary assets and liabilities using period-end exchange rates; and

- income and expenses using average exchange rates, except for expenses related to assets and liabilities re-measured at historical exchange rates.

Gains and losses arising from re-measurement of foreign currency balances and transactions are recorded in earnings.

Use of estimates

The preparation of these financial statements requires us to make estimates and assumptions. The most significant estimates and assumptions are quantities of proven and probable gold reserves; expected value of mineral resources not considered proven and probable reserves; expected future costs and expenses to produce proven and probable reserves; expected future commodity prices and foreign currency exchange rates; and expected costs to meet asset retirement obligations. Critical estimates and assumptions include:

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

- assessments of whether groups of long-lived assets are impaired and the fair value of those groups of assets that are the basis for measuring impairment charges;

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

- the useful lives of long-lived assets and the measurement of amortization recorded in earnings; and

- the fair value of asset retirement obligations.

We regularly review estimates and assumptions that affect our financial statements; however, actual outcomes could differ from estimates and assumptions.

B Accounting changes

Effect of accounting changes on earnings

Earnings increase (decrease)
---------------------------------------------------------------------
For the years ended Dec.31                 2004      2003       2002
---------------------------------------------------------------------
Changes in accounting policies
Cumulative effect
 Adoption of FAS 143(1) (note 17A)        $   -    $    4     $    -
 Amortization of underground development
  costs(2) (note 12A)                         -      (21)          -
---------------------------------------------------------------------
                                              -      (17)          -
Pro forma effect (excluding tax effects)
 Adoption of FAS 143(3)                       -         -        (4)
---------------------------------------------------------------------
Total                                     $   -    $ (17)      $ (4)
---------------------------------------------------------------------
(1) On adoption of FAS 143 in first quarter 2003 (see note 17A), we
    recorded on our balance sheet an increase in property, plant and
    equipment of $39 million; an increase in other long-term
    obligations of $32 million; and an increase in deferred income
    tax liabilities of $3 million; as well as a $4 million credit in
    earnings for the cumulative effect of this change.
(2) On January 1, 2003, we changed our accounting policy for
    amortization of underground mine development costs to exclude
    estimates of future underground development costs (see note 12A).
    On adoption of this change, we decreased property, plant and
    equipment by $19 million, and increased deferred income tax
    liabilities by $2 million.  We recorded in our income statement
    a $21 million charge for the cumulative effect of this accounting
    change.
(3) FAS 143 was followed in the preparation of financial results for
    2004 and 2003.  For 2002, because prior years were not restated,
    the amount disclosed is the pro forma effect of following FAS
    143.

Emerging Issues Task Force ("EITF") Issue No. 04-2: Whether Mineral Rights are Tangible or Intangible Assets (EITF 04-2)

EITF 04-2 was issued in 2004 and concludes that mineral rights, which are defined as the legal right to explore, extract and retain at least a portion of the benefits from mineral deposits, are tangible assets. EITF 04-2 was effective in third quarter 2004, and had no impact on the classification of such assets in our financial statements.

EITF Issue No. 04-3, Mining Assets: Impairment and Business Combinations (EITF 04-3)

EITF 04-3 was issued in 2004 and establishes guidance for the inclusion of the expected value of mineralization not considered proven and probable reserves when allocating the purchase price in a business combination and also when testing a mining asset for impairment. The principles of EITF 04-3 are required to be adopted prospectively and were effective in second quarter 2004.

C Accounting developments

EITF Issue No. 03-1, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments (EITF 03-1)

EITF 03-1 was issued in 2004 and establishes guidance to be used in determining when an investment is considered impaired, whether that impairment is other than temporary, and the measurement of an impairment loss. Under the application of our previous accounting policy for impairment of investments, an impairment on a specific investment was recorded in earnings on determination that the impairment was other than temporary or after an investment had been impaired for six months, whichever is the earlier. Under EITF 03-1, there is no requirement to automatically record an impairment loss in earnings after a six-month period; instead the recognition of impairment losses in earnings is based on the assessment of whether the loss is other than temporary. The adoption of the measurement requirements of EITF 03-1 in third quarter 2004 had no effect on impairment charges recorded in earnings.

EITF 03-1 also provides guidance on accounting subsequent to the recognition of an other-than-temporary impairment and requires certain disclosures about impairment losses included in other comprehensive income that have not been recorded in earnings. The measurement requirements of EITF 03-1 were effective for the fiscal quarter ended September 30, 2004, but the disclosure requirements are not effective until fiscal 2005.

EITF Issue No. 04-6, Accounting for Stripping Costs Incurred during Production in the Mining Industry (EITF 04-6)

In the mining industry, companies may be required to remove overburden and other mine waste materials to access mineral deposits.

The costs of removing overburden and waste materials are often referred to as "stripping costs." During the development of a mine (before production begins), it is generally accepted in practice that stripping costs are capitalized as part of the depreciable cost of building, developing, and constructing the mine. Those capitalized costs are typically amortized over the productive life of the mine using the units-of-production method. A mining company may continue to remove overburden and waste materials, and therefore incur stripping costs, during the production phase of the mine. Questions have been raised about the appropriate accounting for stripping costs incurred during the production phase, and diversity in practice exists. In response to these questions, the EITF has undertaken a project to develop an Abstract to address the questions and clarify the appropriate accounting treatment for stripping costs under US GAAP. The EITF is in the process of deliberating these questions and upon completion of their deliberations they are expected to issue EITF 04-6, which will represent an authorative US GAAP pronouncement for stripping costs. Our accounting policy for stripping costs is disclosed in note 13. EITF 04-6 may require us to change our accounting policy for stripping costs in future periods.

FAS 123R, Accounting for Stock-Based Compensation (FAS 123R)

In December 2004, the FASB issued FAS 123R. FAS 123R is applicable to transactions in which an entity exchanges its equity instruments for goods and services. It focuses primarily on transactions in which an entity obtains employee services in share-based payment transactions. FAS 123R requires that the fair value of such equity instruments is recorded as an expense as services are performed. Prior to FAS 123R, only certain pro forma disclosures of accounting for these transactions at fair value were required. FAS 123R will be effective for our third quarter 2005 financial statements, and permits varying transition methods including: retroactive adjustment of prior periods as far back as 1995 to give effect to the fair value based method of accounting for awards granted in those prior periods; retrospective application to all interim periods in 2005; or prospective application to future periods beginning in third quarter 2005. We are presently evaluating the effect of the varying methods of adopting FAS 123R. We expect to adopt FAS 123R using the modified prospective method effective July 1, 2005. Under this method we will begin recording stock option expense based on a similar method to the one used for pro forma purposes that is disclosed in note 21, starting in the third quarter of 2005.

FAS 151, Inventory Costs (FAS 151)

FAS 151 was issued in November 2004 as an amendment to ARB No. 43. FAS 151 specifies the general principles applicable to the pricing and allocation of certain costs to inventory. Under FAS 151, abnormal amounts of idle facility expense, freight, handling costs and wasted materials are recognized as current period charges rather than capitalized to inventory. FAS 151 also requires that the allocation of fixed production overhead to the cost of inventory be based on the normal capacity of production facilities. FAS 151 will be effective for inventory costs incurred beginning in our 2006 fiscal year. We are presently evaluating the impact of FAS 151 on our financial statements.

FAS 153, Exchanges of Non-Monetary Assets (FAS 153)

FAS 153 was issued in December 2004 as an amendment to APB Opinion No. 29. FAS 153 provides guidance on the measurement of exchanges of non-monetary assets, with exceptions for exchanges that do not have commercial substance. Under FAS 153, a non-monetary exchange has commercial substance if, as a result of the exchange, the future cash flows of an entity are expected to change significantly.

Under FAS 153, a non-monetary exchange is measured based on the fair values of the assets exchanged. If fair value is not determinable, the exchange lacks commercial substance or the exchange is to facilitate sales to customers, a non-monetary exchange is measured based on the recorded amount of the non-monetary asset relinquished. FAS 153 will be effective for non-monetary exchanges that occur in fiscal periods beginning after June 15, 2005.

D Other significant accounting policies

---------------------------------------------------------------------
                                                 Note           Page
---------------------------------------------------------------------
---------------------------------------------------------------------
Segment information                                 3
Revenue and gold sales contracts                    4
Cost of sales                                       5
Other (income) expense                              6
Income tax (recovery) expense                       7
Earnings per share                                  8
Supplemental cash flow information                  9
Investments                                        10
Accounts receivable, inventories and
 other current assets                              11
Property, plant and equipment                      12
Capitalized mining costs                           13
Other assets                                       14
Other current liabilities                          15
Financial instruments                              16
Other long-term obligations                        17
Deferred income taxes                              18
Capital stock                                      19
Other comprehensive income (loss)                  20
Stock-based compensation                           21
Post-retirement benefits                           22
Contingencies, litigation and claims               23
Joint ventures                                     24
Differences from Canadian GAAP                     25

3. SEGMENT INFORMATION

Our operations are managed on a regional basis. Our three regional business units are North America, Australia/Africa and South America. Financial information for each of our operating mines, development projects and our exploration group is reviewed regularly by our chief operating decision maker.

Segment income for operating segments comprises segment revenues less segment operating costs and segment amortization in the format that internal management reporting is presented to the chief operating decision maker. For internal management reporting purposes, we measure segment revenues and income using the average consolidated realized gold selling price for each period. Segment operating costs represent our internal presentation of costs incurred to produce gold at each operating mine, and exclude the following costs that we do not allocate to operating segments: accretion expense; environmental remediation costs at closed mines; regional business unit overhead; amortization of corporate assets; business development costs; administration costs; other income/expense; and the costs of financing their activities. Segment operating costs for development projects and the exploration group represent expensed exploration, mine development and mine start-up costs.

Income statement information

---------------------------------------------------------------------
                                                   Gold sales
---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Goldstrike                                $  745    $  813    $  678
Round Mountain                               148       139       132
Eskay Creek                                  112       130       121
Hemlo                                         93        98        97
Other                                         42        50       177
---------------------------------------------------------------------
 North America                             1,140     1,230     1,205
---------------------------------------------------------------------
Plutonic                                     122       120       105
Kalgoorlie                                   183       153       124
Cowal                                          -         -         -
Bulyanhulu                                   135       109       134
Tulawaka                                       -         -         -
Other                                        101        91        89
---------------------------------------------------------------------
 Australia/Africa                            541       473       452
---------------------------------------------------------------------
Pierina                                      251       332       303
Veladero                                       -         -         -
Pascua-Lama                                    -         -         -
Lagunas Norte                                  -         -         -
Other                                          -         -         7
---------------------------------------------------------------------
 South America                               251       332       310
---------------------------------------------------------------------
Exploration group                              -         -         -
---------------------------------------------------------------------
---------------------------------------------------------------------
Segment total                            $ 1,932   $ 2,035   $ 1,967
---------------------------------------------------------------------

---------------------------------------------------------------------
                                             Segment operating costs
---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Goldstrike                                $  475     $ 531    $  436
Round Mountain                                83        66        73
Eskay Creek                                    9        18        14
Hemlo                                         57        60        64
Other                                         21        29        96
---------------------------------------------------------------------
 North America                               645       704       683
---------------------------------------------------------------------
Plutonic                                      69        62        57
Kalgoorlie                                   107        87        82
Cowal                                          1         -         -
Bulyanhulu                                    96        73        78
Tulawaka                                       -         2         3
Other                                         60        53        45
---------------------------------------------------------------------
 Australia/Africa                            333       277       265
---------------------------------------------------------------------
Pierina                                       69        76        72
Veladero                                       5        18        20
Pascua-Lama                                    4         -         -
Lagunas Norte                                 12        29        29
Other                                          3         -         5
---------------------------------------------------------------------
 South America                                93       123       126
---------------------------------------------------------------------
Exploration group                             96        67        42
---------------------------------------------------------------------
---------------------------------------------------------------------
Segment total                            $ 1,167   $ 1,171   $ 1,116
---------------------------------------------------------------------

---------------------------------------------------------------------
                                              Segment income (loss)
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Goldstrike                                $  121     $ 122     $  95
Round Mountain                                48        53        38
Eskay Creek                                   52        65        59
Hemlo                                         24        27        23
Other                                         11         7        56
---------------------------------------------------------------------
 North America                               256       274       271
---------------------------------------------------------------------
Plutonic                                      42        48        37
Kalgoorlie                                    56        46        23
Cowal                                        (1)         -         -
Bulyanhulu                                     5       (1)        16
Tulawaka                                       -       (2)       (3)
Other                                         27        26        33
---------------------------------------------------------------------
 Australia/Africa                            129       117       106
---------------------------------------------------------------------
Pierina                                       75        90        70
Veladero                                     (5)      (18)      (20)
Pascua-Lama                                  (4)         -         -
Lagunas Norte                               (12)      (29)      (29)
Other                                        (3)         -         2
---------------------------------------------------------------------
 South America                                51        43        23
---------------------------------------------------------------------
Exploration group                           (96)      (67)      (42)
---------------------------------------------------------------------
---------------------------------------------------------------------
Segment total                              $ 340     $ 367     $ 358
---------------------------------------------------------------------


Geographic information

---------------------------------------------------------------------
                                  Assets            Gold sales
---------------------------------------------------------------------
For the years ended Dec.31     2004    2003     2004    2003    2002
---------------------------------------------------------------------
United States               $ 1,976 $ 1,835   $  911  $  970  $  906
Canada                          492     480      229     260     299
---------------------------------------------------------------------
North America                 2,468   2,315    1,140   1,230   1,205
---------------------------------------------------------------------
Australia                       838     552      406     364     318
Tanzania                        774     707      135     109     134
---------------------------------------------------------------------
Australia/Africa              1,612   1,259      541     473     452
---------------------------------------------------------------------
Peru                            811     757      251     332     303
Argentina                       645     219        -       -       -
Chile                           120      90        -       -       -
---------------------------------------------------------------------
South America                 1,576   1,066      251     332     303
---------------------------------------------------------------------
Other                           618     718        -       -       7
---------------------------------------------------------------------
                             $6,274  $5,358   $1,932 $ 2,035  $1,967
---------------------------------------------------------------------



Reconciliation of segment income

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Segment income                            $  340    $  367    $  358
Accretion expense at producing mines        (11)      (10)         -
Environmental remediation costs                -         -      (34)
Other expenses at producing mines           (16)      (11)      (14)
Amortization of corporate assets            (27)      (25)      (26)
Business development costs                  (18)      (17)      (10)
Administration                              (71)      (73)      (50)
Interest income                               25        31        26
Interest expense                            (19)      (44)      (57)
Other income (expense)                     (158)         4      (16)
---------------------------------------------------------------------
Income before income taxes and
 other items                              $   45    $  222    $  177
---------------------------------------------------------------------



Asset information

---------------------------------------------------------------------
                          Segment assets          Amortization
---------------------------------------------------------------------
For the years ended
 Dec.31                     2004    2003     2004     2003      2002
---------------------------------------------------------------------
 Goldstrike              $ 1,290  $1,372   $  149    $ 160    $  147
 Round Mountain               67      75       17       20        21
 Eskay Creek                  91     203       51       47        48
 Hemlo                        63      65       12       11        10
 Other operating segments     28      29       10       14        25
---------------------------------------------------------------------
  North America            1,539   1,744      239      252       251
---------------------------------------------------------------------
 Plutonic                     92      84       11       10        11
 Kalgoorlie                  277     250       20       20        19
 Cowal                       130      49        -        -         -
 Bulyanhulu                  566     539       34       37        40
 Tulawaka                     70      22        -        -         -
 Other operating segments     89      84       14       12        11
---------------------------------------------------------------------
  Australia/Africa         1,224   1,028       79       79        81
---------------------------------------------------------------------
 Pierina                     269     434      107      166       161
 Veladero                    456      88        -        -         -
 Pascua-Lama                 273     236        -        -         -
 Lagunas Norte               220       9        -        -         -
---------------------------------------------------------------------
  South America            1,218     767      107      166       161
---------------------------------------------------------------------
---------------------------------------------------------------------
Segment total              3,981   3,539      425      497       493
Cash and equivalents       1,398     970        -        -         -
Other items not allocated
 to segments                 895     849       27       25        26
---------------------------------------------------------------------
---------------------------------------------------------------------
Enterprise total         $ 6,274 $ 5,358   $  452    $ 522     $ 519
---------------------------------------------------------------------
---------------------------------------------------------------------

---------------------------------------------------------------------
                                      Segment capital expenditures
---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
 Goldstrike                                $  72      $ 51      $ 46
 Round Mountain                                5         6         8
 Eskay Creek                                   7         5         8
 Hemlo                                         8        10         6
 Other operating segments                     12         8        19
---------------------------------------------------------------------
  North America                              104        80        87
---------------------------------------------------------------------
 Plutonic                                     15        44        20
 Kalgoorlie                                   10        14        14
 Cowal                                        73        24        13
 Bulyanhulu                                   46        36        56
 Tulawaka                                     48         1         -
 Other operating segments                     12        21        14
---------------------------------------------------------------------
  Australia/Africa                           204       140       117
---------------------------------------------------------------------
 Pierina                                       8        17         5
 Veladero                                    284        68         -
 Pascua-Lama                                  35         9        11
 Lagunas Norte                               182         4         5
---------------------------------------------------------------------
  South America                              509        98        21
---------------------------------------------------------------------
---------------------------------------------------------------------
Segment total                                817       318       225
Cash and equivalents                           -         -         -
Other items not allocated
 to segments                                   7         4         3
---------------------------------------------------------------------
---------------------------------------------------------------------
Enterprise total                          $  824     $ 322     $ 228
---------------------------------------------------------------------
---------------------------------------------------------------------


4. REVENUE AND GOLD SALES CONTRACTS

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Gold bullion sales
Gold sales contracts                      $  709   $ 1,504   $ 1,401
Spot market sales                          1,111       426       460
---------------------------------------------------------------------
                                           1,820     1,930     1,861
Concentrate sales                            112       105       106
---------------------------------------------------------------------
                                         $ 1,932   $ 2,035   $ 1,967
---------------------------------------------------------------------

We record revenue when the following conditions are met: persuasive evidence of an arrangement exists; delivery has occurred under the terms of the arrangement; the price is fixed or determinable; and collectability is reasonably assured.

Bullion sales

We record revenue from gold and silver bullion sales at the time of delivery and transfer of title to the gold or silver to counterparties. Incidental revenues from the sale of by-products such as silver are classified within cost of sales.

At December 31, 2004, we had fixed-price gold sales contracts with various counterparties for a total of 13.5 million ounces of future gold production and floating-price forward gold sales contracts for 0.5 million ounces. In 2004, we allocated 6.5 million ounces of fixed-price gold sales contracts specifically to Pascua-Lama. The allocation of these contracts will help reduce gold price risk at Pascua-Lama and will help secure financing for its construction. In addition to the gold sales contracts allocated to Pascua-Lama, we have 7.0 million ounces of corporate gold sales contracts that we intend to settle through delivery of future gold production from our operating mines and development projects, excluding Pascua-Lama. The terms of the contracts are governed by master trading agreements (MTAs) that we have in place with the counterparties to the contracts. The contracts have final delivery dates primarily over the next 10 years, but we have the right to settle these contracts at any time over this period. Contract prices are established at inception through to an interim date.

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 MTAs which have contractually agreed price adjustment mechanisms based on the market gold price. The MTAs have both fixed and floating price mechanisms. The fixed-price mechanism 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. If at an interim date we opt for a floating price, the floating price represents the spot market price at the time of delivery of gold plus or minus the difference between the previously fixed price and the market gold price at that interim date. The final realized selling price under a contract primarily depends upon 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 for the periods that fixed selling prices are set. The mark-to-market on the fixed-price gold sales contracts (at December 31, 2004) was negative $966 million for the Pascua-Lama gold sales contracts at negative $949 million for the Corporate gold sales contracts.

The difference between the forward price of gold and the current market price, referred to as contango, can be expressed as a percentage that is closely correlated to the difference between US dollar interest rates and gold lease rates. Historically short-term gold lease rates have been lower than longer-term rates. We use gold lease rate swaps to achieve a more economically optimal term structure for gold lease rates implicit in contango. Under the swaps we receive a fixed gold lease rate, and pay a floating gold lease rate, on a notional 2.1 million ounces of gold spread from 2005 to 2013. The swaps are associated with forward gold sales contracts with expected delivery dates beyond 2006. Lease rate swaps are classified as non-hedge derivatives (note 16C).

Floating spot price sales contracts were previously fixed-price forward sales contracts for which, in accordance with the terms of our MTAs, we have elected to receive floating spot gold and silver prices, adjusted by the difference between the spot price and the contract price at the time of such election. Floating prices were elected for these contracts so that we could economically regain spot gold price leverage under the terms of delivery into these contracts.

Furthermore, floating price mechanisms were elected for these contracts at a time when the then current market price was higher than the fixed price in the contract. The mark-to-market on these contracts (at December 31, 2004) was negative $25 million, which equates to an average reduction to the future spot sales price of approximately $52 per ounce, when we deliver gold at spot prices against these contracts.

At December 31, 2004, one counterparty made up 11% of the ounces committed under gold bullion sales contracts.

Concentrate sales

Our Eskay Creek and Bulyanhulu mines produce gold in concentrate form. Our Veladero and Pascua-Lama mines will also produce gold in concentrate form. Under the terms of our concentrate sales contracts with independent smelting companies, gold sales prices are set on a specified future date after shipment based on market prices. We record revenues under these contracts at the time of shipment, which is when title passes to the smelting companies, using forward market gold prices on the expected date that final sales prices will be set.

Variations between the price recorded at the shipment date and the actual final price set under the smelting contracts are caused by changes in market gold prices, and result in an embedded derivative in the accounts receivable. The embedded derivative is recorded at fair value each period until final settlement occurs, with changes in fair value classified as a component of revenue.

Impact of derivative embedded in concentrate sales receivables
---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Gains included in revenue               $      -  $      -  $      1

5. COST OF SALES

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Cost of goods sold (1),(3)               $ 1,136  $  1,110   $ 1,133
By-product revenues(2)                     (146)     (114)     (119)
Royalty expense                               53        50        37
Mining taxes                                  12        15         5
Other expenses at producing mines(4)          16        11        14
---------------------------------------------------------------------
                                         $ 1,071   $ 1,072   $ 1,070
---------------------------------------------------------------------
(1) The presentation of cost of goods sold includes accretion expense
    at producing mines of $11 million (2003 - $10 million; 2002 -
    $nil). The cost of inventory sold in the period reflects the
    components described in note 11, except that for presentation
    purposes the component of inventory cost relating to amortization
    of property, plant and equipment is classified in the income
    statement under "amortization".  Some companies present this
    amount under "cost of sales".  The amount presented in
    amortization rather than cost of sales is $425 million in 2004;
    $497 million in 2003 and $493 million in 2002.
(2) We use silver sales contracts to sell a portion of silver
    produced as a by-product.  Silver sales contracts have similar
    delivery terms and pricing mechanisms as gold sales contracts.
    At December 31, 2004, we had fixed-price commitments to deliver
    12.4 million ounces of silver at an average price of $5.50 per
    ounce and floating spot price sales contracts for 12 million
    ounces over periods primarily of up to 10 years.
(3) Cost of goods sold includes environmental remediation costs of
    $34 million in 2002.
(4) Includes the reversal of $15 million of accrued costs on
    resolution of the Peruvian tax assessment (see note 7).

Royalties

Certain of our properties are subject to royalty arrangements based on mineral production at the properties. The most significant royalties are at the Goldstrike and Bulyanhulu mines and the Pascua-Lama and Veladero projects. The primary type of royalty is a net smelter return (NSR) royalty. Under this type of royalty we pay the holder an amount calculated as the royalty percentage multiplied by the value of gold production at market gold prices less third-party smelting, refining and transportation costs. Most Goldstrike production is subject to an NSR or net profits interest (NPI) royalty. The highest Goldstrike royalties are a 5% NSR and a 6% NPI royalty. Bulyanhulu is subject to an NSR-type royalty of 3%. Pascua-Lama gold production from the areas located in Chile is subject to a gross proceeds sliding scale royalty, ranging from 1.5% to 10%, and a 2% NSR on copper production. For areas located in Argentina, Pascua-Lama is subject to a 3% NSR on extraction of all gold, silver and other ores. Production at Veladero is subject to a 3.75% NSR on extraction of all gold, silver and other ores.

Royalty expense is recorded at the time of sale of gold production, measured using the applicable royalty percentage for NSR royalties or estimates of NPI amounts.

6. OTHER (INCOME) EXPENSE

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Non-hedge derivative (gains) losses
 (note 16C)                               $  (5)  $   (71)      $  6
Gains realized on sale of assets            (34)      (34)       (4)
Environmental remediation costs(2)            43        55         -
Impairment of long-lived assets
 Eskay Creek                                  58         -         -
 Peruvian exploration properties              67         -         -
 Other                                        14         5        11
Impairment charges on investments
 (note 10)                                     5        11         -
World Gold Council fees                        9        10        12
Litigation costs                               -        16         -
Currency translation (gains) losses            1       (2)       (1)
Pension expense (note 22B)                     -         4         2
Other items(1)                                 -         2      (10)
---------------------------------------------------------------------
                                           $ 158    $  (4)    $   16
---------------------------------------------------------------------
(1) Includes the reversal of $6 million of accrued costs on
    resolution of the Peruvian tax assessment (see note 7) and $4
    million in severance costs related to the sale of the Holt
    McDermott mine.
(2) Includes costs at development projects and closed mines.

Gains realized on sale of assets

In 2004 we sold various assets, including the Holt-McDermott mine in Canada and certain land positions around our inactive mine sites in the United States. These land positions were fully amortized in prior years and therefore any proceeds generate gains on sale, before selling costs and taxes.

Environmental remediation costs at closed mines

During the production phases of a mine, we incur and expense the cost of various activities connected with environmental aspects of normal operations, including compliance with and monitoring of environmental regulations; disposal of hazardous waste produced from normal operations; and operation of equipment designed to reduce or eliminate environmental effects. In limited circumstances, costs to acquire and install plant and equipment are capitalized during the production phase of a mine if the costs are expected to mitigate risk or prevent future environmental contamination from normal operations.

When a contingent loss arises from the improper use of an asset, a loss accrual is recorded if the loss is probable and reasonably estimable. Amounts recorded are measured on an undiscounted basis, and adjusted as further information develops or if circumstances change. Recoveries of environmental remediation costs from other parties are recorded as assets when receipt is deemed probable.

    Impairment of long-lived assets

    Eskay Creek

The asset group that comprises the Eskay Creek mine was tested for impairment effective December 31, 2004. The principal factors that caused us to test this asset group for impairment included: downward revisions to proven and probable reserves; the impact of the continued strengthening of the C$ against the US$ and upward revisions to expected asset retirement costs in the fourth quarter of 2004. An impairment charge of $58 million was recorded, which represents the amount by which the carrying amount of the asset group exceeds its estimated fair value. Fair value was estimated using the method described in note 12C.

Peruvian exploration properties

At the end of 2004, upon completion of the exploration program for the year, we assessed the results and updated our future plans for various exploration properties in Peru that were originally acquired through the Arequipa acquisition in 1996. We concluded that the results and future potential did not merit any further investment for these properties. The assets were tested for impairment, and an impairment charge of $67 million was recorded that reflects the amounts by which their carrying amounts exceed their estimated fair values. The fair value of this group of assets was judged to be minimal due to the unfavorable results of exploration work in the properties.

Litigation costs

In November 2003, we paid Inmet C$111 million (US $86 million), in full settlement of the Inmet litigation. The settlement resulted in an expense of US$14 million in fourth quarter 2003, combined with post-judgment interest of $2 million in the first nine months of 2003.

7. INCOME TAX (RECOVERY) EXPENSE

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Current
 Canada                                   $   19    $   40  $     44
 International                                24        14        15
---------------------------------------------------------------------
                                           $  43    $   54  $     59
---------------------------------------------------------------------
Deferred
 Canada                                   $ (26)    $ (32)    $ (45)
 International                                 7        45       (8)
---------------------------------------------------------------------
                                          $ (19)   $    13   $  (53)
---------------------------------------------------------------------
Income tax expense before
 elements below(1)                         $  24    $   67   $     6
Release of beginning of year
 valuation allowances                        (5)      (62)         -
Outcome of tax uncertainties               (141)         -      (22)
Change in tax status in Australia           (81)         -         -
---------------------------------------------------------------------
Total (recovery) expense                 $ (203)   $     5    $ (16)
---------------------------------------------------------------------
(1) All amounts are deferred tax items except for a $21 million
    portion of the $141 million recovery on resolution of the
    Peruvian tax assessment in 2004, which is a current tax item.

    Outcome of tax uncertainties

    Peruvian tax assessment

On September 30, 2004, the Tax Court of Peru issued a decision in our favor in the matter of our appeal of a 2002 income tax assessment of $32 million, excluding interest and penalties. The Peruvian tax agency, SUNAT, had until mid-January 2005 to appeal the decision.

The 2002 income tax assessment related to a tax audit of our Pierina Mine for the 1999 and 2000 fiscal years. The assessment mainly related to the validity of a revaluation of the Pierina mining concession, which affects its tax basis. Under the valuation proposed by SUNAT, the tax basis of the Pierina mining concession would have changed from what we previously assumed with a resulting increase in current and deferred income taxes. The full life of mine effect on our current and deferred income tax liabilities, totaling $141 million, was recorded at December 31, 2002, as were other related costs of about $21 million for periods through 2003.

In January 2005, we received confirmation in writing that there would be no appeal of the September 30, 2004 Tax Court of Peru decision. The confirmation concluded the administrative and judicial appeals process with resolution in Barrick's favor. As a result, we recorded a $141 million reduction in current and deferred income tax liabilities and a $21 million reduction in other accrued costs in 2004; $15 million of which is classified in "other expenses at producing mines" within cost of sales and $6 million of which is classified in other (income) expense.

Other uncertainties

In 2002, we recorded a credit of $22 million reflecting the net impact of tax planning completed in the period and the outcome of certain tax uncertainties.

Changes in tax status in Australia

A new tax law has been enacted in Australia that allows wholly owned groups of companies resident in Australia to elect to be treated as a single entity and to file consolidated tax returns. This new regime is elective and the election is irrevocable. Under certain circumstances, the rules governing the election allow for a choice to reset the tax cost basis of certain assets within a consolidated group. This election will be effective for us for the 2004 fiscal year. This election results in an estimated upward revaluation of the tax basis of our assets in Australia, by $110 million, with a corresponding $33 million adjustment to deferred taxes.

In 2004, we filed an election to use US dollars as the functional currency for Australian tax calculations and tax returns, whereas previously Australian dollars were used. Prior to this election, the favorable impact of changes in the tax basis of non-monetary assets caused by changes in the US$:A$ exchange rate were not recorded, as their realization was not certain. The election in 2004 created certainty about the realization of these favorable tax temporary differences and resulted in our recognition of these as deferred tax assets amounting to $48 million. The impact of the change in tax status was to increase the amount of deductible temporary differences relating to non-monetary assets by $48 million.

Release of beginning of year valuation allowances

In 2004, we released valuation allowances totaling $5 million in Australia following the consolidated tax return election described above. In 2003, we released valuation allowances totaling $62 million, which mainly included: $21 million in North America following a corporate reorganization of certain subsidiaries that enabled us to utilize certain previously unrecognized tax assets; $16 million in Australia realized in 2003 due to an increase in taxable income from higher gold prices; and $15 million in Argentina after the approval to begin construction of our new Veladero mine and classification of mineralization as a proven and probable reserve.

---------------------------------------------------------------------
Reconciliation to Canadian federal rate
---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
At 38% statutory federal rate             $   17     $  84     $  67
Increase (decrease) due to:
 Allowances and special tax
  deductions(1)                             (34)      (17)      (12)
 Impact of foreign tax rates(2)              (5)      (42)      (67)
 Expenses not tax-deductible                  10        11         9
 Release of beginning of year
  valuation allowances                       (5)      (62)         -
 Recognition of deferred tax assets(3)      (81)         -         -
 Valuation allowances set up against
  current year tax losses                     29        23         3
 Outcome of tax uncertainties              (141)         -      (22)
 Withholding taxes on intercompany
  interest                                     1         1        11
 Mining taxes                                  5         8         3
 Other items                                   1       (1)       (8)
---------------------------------------------------------------------
Income tax expense (recovery)            $ (203)     $   5    $ (16)
---------------------------------------------------------------------
(1) We are able to claim certain allowances and tax deductions unique
    to extractive industries that result in a lower effective tax
    rate.
(2) We operate in multiple foreign tax jurisdictions that have
    different tax rates than the Canadian federal rate.
(3) In 2004, we recognized a $81 million deferred tax asset in
    Australia due to a change in tax status.

Income tax returns

Our income tax returns for the major jurisdictions where we operate have been fully examined through the following years: Canada - 2000, United States - 2001, and Peru - 2000.

American Jobs Creation Act of 2004

The American Jobs Creation Act of 2004 ("the Act") was signed into law on October 22, 2004. The Act creates an elective incentive for U.S. multinationals to repatriate accumulated earnings from controlled foreign corporations. The repatriation incentive is only available for 2004 or 2005. We are currently evaluating the application of the repatriation incentive; however, we cannot complete our analysis until additional legislation and/or IRS guidance is provided to clarify key elements of the legislation.

8. EARNINGS PER SHARE

---------------------------------------------------------------------
For the years ended Dec.31
($ millions, except shares in
 millions and per share amounts
 in dollars)                                2004      2003      2002
---------------------------------------------------------------------
Income available to common stockholders
 Basic                                     $ 248     $ 200    $  193
 Effect of dilutive stock options              -         -         -
---------------------------------------------------------------------
 Diluted                                   $ 248     $ 200    $  193
---------------------------------------------------------------------
Weighted average shares outstanding
 Basic                                       533       539       541
 Effect of dilutive stock options              1         -         -
---------------------------------------------------------------------
 Diluted                                     534       539       541
---------------------------------------------------------------------
 Earnings per share
  Basic                                   $ 0.47    $ 0.37    $ 0.36
  Diluted                                 $ 0.46    $ 0.37    $ 0.36
---------------------------------------------------------------------



9. SUPPLEMENTAL CASH FLOW INFORMATION

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Income statement items:
 Currency translation losses                 $ 1       $ 5       $ -
 (Gains) losses on investments (note 10)     (1)         7         3
 Accounting changes (note 2B)                  -        17         -
 Accretion expense (note 17A)                 18        17         -
 Non-hedge derivative (gains) losses
  (note 16C)                                 (5)      (71)         6
 Inmet litigation                              -        16         -
 Current income tax expense (note 7)          22        54        59
 Impairment charges on long-lived
  assets (note 6)                            139         5        11
 Revisions to expected cost of AROs
  at closed mines (note 17A)                  22        10         -
 Amortization of debt issue costs              3         1         1
 Losses on write-down of inventory
  to market value (note 11)                    9         3         6
Changes in:
 Accounts receivable                         (2)         3      (12)
 Inventories                                (51)       (1)        26
 Accounts payable                              4         4      (25)
 Capitalized mining costs                      9        37        29
 Other assets and liabilities               (25)         6      (12)
Cash payments:
 Merger and related costs                      -         -      (50)
 Asset retirement obligations               (33)      (40)      (70)
 Current income taxes                       (45)     (111)      (52)
Other items                                    -         4        35
---------------------------------------------------------------------
Other net operating activities           $    65    $ (34)   $  (45)
---------------------------------------------------------------------
Interest paid, net of amounts
 capitalized                              $   19      $ 44     $  57
---------------------------------------------------------------------



10. INVESTMENTS

Available-for-sale securities

---------------------------------------------------------------------
At Dec.31                                 2004           2003
---------------------------------------------------------------------
                                      Fair    Gains    Fair    Gains
                                     value   in OCI   value   in OCI
---------------------------------------------------------------------
Benefit plans:(1)
 Fixed-income securities             $  11     $  -    $  6     $  -
 Equity securities                      19       10      26        8
Strategic investments:
 Equity securities(2)                  104        -      98       30
---------------------------------------------------------------------
Total                              $   134    $  10   $ 130     $ 38
---------------------------------------------------------------------
(1) Under various benefit plans for certain former Homestake
    executives, a portfolio of marketable fixed-income and equity
    securities are held in a rabbi trust that is used to fund
    obligations under the plans.
(2) Other investments mainly include an investment in Highland Gold
    with a fair value of $75 million at December 31, 2004.

Available-for-sale securities are recorded at fair value with unrealized gains and losses recorded in OCI. Realized gains and losses are recorded in earnings when investments mature or on sale, calculated using the average cost of securities sold. We recognize in earnings any unrealized declines in fair value judged to be other than temporary (2004 - $5 million; 2003 - $11 million; 2002 - $nil). Total proceeds from the sale of investments were $9 million in 2004 (2003 - $8 million; 2002 - $3 million).

Gains (losses) on investments recorded in earnings

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Realized on sale
 Gains                                      $  6    $    5    $    -
 Losses                                        -       (1)       (3)
Impairment charges                           (5)      (11)         -
---------------------------------------------------------------------
                                           $   1    $  (7)    $  (3)
---------------------------------------------------------------------

Investment in Highland Gold Mining PLC ("Highland")

In 2004, we acquired a further 9.3 million common shares of Highland for $40 million in cash. Combined with the purchase of 11.1 million common shares for $46 million in October 2003, we held a 14% interest in Highland common shares at December 31, 2004.

We have also formed a strategic partnership with Highland under which:

- We have the right to participate on an exclusive basis for up to 50% on any acquisition made by Highland in Russia; and a similar right extends to Highland for any acquisition made by us in certain regions in Russia, excluding Irkutsk.

- We have a right of first refusal with respect to third-party investment in Highland's Mayskoye property in the Chutotka region, Russia, and plan to pursue discussions with Highland on establishing a joint venture at Mayskoye.

Investment in Celtic Resources Holdings PLC ("Celtic")

On December 2, 2004, Barrick and Celtic entered into a subscription agreement under which we agreed to subscribe for 3,688,191 units of Celtic for $7.562 per unit. Each unit consists of one ordinary share of Celtic and one-half of one share purchase warrant. Each whole warrant entitles us to acquire one ordinary share of Celtic for $7.562, expiring on December 31, 2005. In the event that Celtic does not acquire 100% of the license to the Nezhdaninskoye deposit before June 1, 2005, the number of warrants will automatically increase by 50%. Completion of the subscription occurred on January 5, 2005 upon which we held a 9% interest in Celtic's outstanding ordinary shares.

In connection with the completion of the subscription, Barrick and Celtic entered into the following agreements:

- We have the pre-emptive right to subscribe for up to $75 million of Celtic shares at $7.562 per share.

- Nezhdaninskoye Right of First Refusal. Celtic has granted us the right of first refusal on any proposed sale of its direct or indirect interest in Nezhdaninskoye.

- Nezhdaninskoye Purchase Option. Celtic has granted us the right to indirectly purchase 51% of its interest in Nezhdaninskoye for $195 million, exercisable for a period of six months starting if and when Celtic indirectly acquires 100% of Nezhdaninskoye.

- Kazakhstan Participation. Celtic has granted to us the right to acquire 50% of any interest in any mineral property in Kazakhstan that Celtic acquires. We have 12 months to elect to participate in any such acquisitions by Celtic. To participate, we must pay Celtic 50% of the cost to Celtic of its interest in the mineral property.

11. ACCOUNTS RECEIVABLE, INVENTORIES AND OTHER CURRENT ASSETS

---------------------------------------------------------------------
At Dec.31                                        2004           2003
---------------------------------------------------------------------
Accounts receivable
 Amounts due from concentrate sales             $  29          $  26
 Other                                             29             30
---------------------------------------------------------------------
                                                $  58          $  56
---------------------------------------------------------------------
Inventories
 Gold in process and ore in stockpiles       $    198         $  163
 Mine operating supplies                           82             58
---------------------------------------------------------------------
                                                  280            221
 Non-current ore in stockpiles(1)                (65)           (57)
---------------------------------------------------------------------
                                               $  215         $  164
---------------------------------------------------------------------
Other current assets
 Derivative assets (note 16C)                 $   165         $  154
 Taxes recoverable                                104              9
 Prepaid expenses                                  17             15
---------------------------------------------------------------------
                                               $  286         $  178
---------------------------------------------------------------------
(1) Ore that we do not expect to process in the next 12 months is
    classified in other assets (note 14).

Inventories

Material extracted from our mines is classified as either ore or waste. Ore represents material that can be mined, processed into a saleable form and sold at a profit. Ore, which represents material included in proven and probable reserves, is recorded as an asset that is classified within inventory at the point it is extracted from the mine. Ore is accumulated in stockpiles that are subsequently processed into gold in a saleable form under a mine plan that takes into consideration optimal scheduling of production of our reserves, present plant capacity, and the market price of gold.

We record gold in process and ore in stockpiles at cost, less provisions required to reduce inventory to market value. Costs capitalized to inventory include direct and indirect materials and consumables; direct labor; repairs and maintenance; utilities; amortization of property, plant and equipment; amortization of capitalized mining costs; and local mine administrative expenses. Costs are removed from inventory and recorded in cost of sales based on the average cost per ounce of gold in inventory. Average cost is calculated based on the cost of inventory at the beginning of a period, plus the cost of inventory produced in a period.

---------------------------------------------------------------------
Significant ore in stockpiles
---------------------------------------------------------------------
At Dec.31                                        2004           2003
---------------------------------------------------------------------
Goldstrike
 Ore that requires roasting                     $  23          $  22
 Ore that requires autoclaving                     17             19
Kalgoorlie                                         46             32
---------------------------------------------------------------------

At Goldstrike, we expect to fully process the autoclave stockpile by 2009 and the roaster stockpile by 2016. At Kalgoorlie, we expect to process the stockpile by 2017.

Mine operating supplies are recorded at purchase cost, less provisions to reduce slow-moving and obsolete supplies to market value.

Cost of sales includes losses recorded to reduce inventory cost to market value as follows: 2004 - $9 million; 2003 - $3 million; 2002 - $6 million.

12. PROPERTY, PLANT AND EQUIPMENT

---------------------------------------------------------------------
At Dec.31                                        2004           2003
---------------------------------------------------------------------
Acquired mineral properties and
 capitalized mine development costs           $ 4,489     $    4,242
Buildings, plant and equipment                  3,289          2,831
---------------------------------------------------------------------
                                                7,778          7,073
Accumulated amortization                      (4,387)        (3,945)
---------------------------------------------------------------------
                                              $ 3,391    $     3,128
---------------------------------------------------------------------

A Acquired mineral properties and capitalized mine development costs

Exploration and development stage properties

We capitalize the cost of acquisition of land and mineral rights.

The cost is allocated between proven and probable reserves and mineralization not considered proven and probable reserves at the date of acquisition, based on relative fair values. If we later establish that some mineralization meets the definition of proven and probable gold reserves, we classify a portion of the capitalized acquisition cost as relating to reserves.

After acquisition, various factors can affect the recoverability of the capitalized cost of land and mineral rights, particularly the results of exploration drilling. The length of time between the acquisition of land and mineral rights and when we undertake exploration work varies based on the prioritization of our exploration projects and the size of our exploration budget. If we conclude that the carrying amount of land and mineral rights is impaired, we reduce this carrying amount to estimated fair value through an impairment charge.

We capitalize costs incurred at development projects that meet the definition of an asset after mineralization is classified as proven and probable gold reserves (as defined by United States reporting standards). Before classifying mineralization as proven and probable gold reserves, costs incurred at development projects are considered exploration costs, and are expensed as incurred. Effective May 1, 2004, we determined that mineralization at Lagunas Norte met the definition of proven and probable reserves for United States reporting purposes. Following this determination, we began capitalizing costs that meet the definition of an asset at Lagunas Norte prospectively for future periods. The cost of start-up activities at new mines such as recruiting and training is expensed as incurred.

At December 31, 2004 the following assets were in an exploration, development or construction stage and amortization of the capitalized costs had not yet begun.

---------------------------------------------------------------------
                            Carrying amount at    Targeted timing of
                                  Dec.31, 2004   production start-up
---------------------------------------------------------------------
Development stage projects
 Veladero                               $  362                  2005
 Lagunas Norte                             196                  2005
 Tulawaka                                   70                  2005
 Cowal                                     128                  2006
 Pascua-Lama                               230                  2009
 Buzwagi                                   102                     -
Nevada Power Plant                          18                  2005
---------------------------------------------------------------------
Total                                 $  1,106
---------------------------------------------------------------------

Interest cost is considered an element of the historical cost of an asset when a period of time is necessary to prepare it for its intended use. We capitalize interest costs to assets under development or construction while activities are in progress. We stop capitalizing interest costs when construction of an asset is substantially complete and it is ready for its intended use. We measure the amount capitalized based on cumulative capitalized costs, exclusive of the impact, if any, of impairment charges on the carrying amount of an asset.

Producing mines

We start amortizing capitalized mineral property acquisition and mine development costs when production begins. Amortization is capitalized as a component of the cost of inventory. Amortization is calculated using the "units-of-production" method, where the numerator is the number of ounces produced and the denominator is the estimated recoverable ounces of gold contained in proven and probable reserves.

During production at underground mines, we incur development costs to build new shafts, drifts and ramps that will enable us to physically access ore underground. The time over which we will continue to incur these costs depends on the mine life, and in some cases could be up to 25 years. These underground development costs are capitalized as incurred. In years prior to 2003 we amortized the aggregate total of historically capitalized costs, and estimated costs that will be incurred to enable access to the ore body over the remaining mine life, using the units-of-production method. In 2003, we changed the method of amortizing these costs to better attribute these costs to ounces of gold produced, as well as to remove the uncertainty inherent in using estimates of future underground development costs in the measurement of amortization.

Under our revised method of measuring amortization for underground development costs, the cost incurred to access specific ore blocks or areas of the mine, which only provides an economic benefit over the period of mining that ore block or area, is attributed to earnings using the units-of-production method where the denominator is estimated recoverable ounces of gold contained in proven and probable reserves within that ore block or area. If capitalized costs provide an economic benefit over the entire mine life, the costs are attributed to earnings using the units-of-production method, where the denominator is the estimated recoverable ounces of gold contained in total accessible proven and probable reserves.

B Buildings, plant and equipment

We record buildings, plant and equipment at cost. We capitalize costs that extend the productive capacity or useful economic life of an asset. Repairs and maintenance expenditures are expensed as incurred. We amortize the cost less estimated residual value, using the straight-line method over the estimated useful economic life of the asset. The longest estimated useful economic life for buildings and equipment at ore processing facilities is 25 years and for mining equipment is 15 years.

C Impairment evaluations - operating mines and development projects

We review and test the carrying amounts of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. We group assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For operating mines and development projects, all assets are included in one group. If there are indications that an impairment may have occurred, we prepare estimates of expected future cash flows for each group of assets. Expected future cash flows are based on a probability-weighted approach applied to potential outcomes.

Estimates of expected future cash flow reflect:

- Estimated sales proceeds from the production and sale of recoverable ounces of gold contained in proven and probable reserves;

- Expected future commodity prices and currency exchange rates (considering historical and current prices, price trends and related factors). In impairment assessments conducted in 2004 we used an expected future market gold price of $400 per ounce, and an expected future market A$:US$ exchange rate of $0.70 and C$:US$ exchange rate of $0.82;

- Expected future operating costs and capital expenditures to produce proven and probable gold reserves based on mine plans that assume current plant capacity, but exclude the impact of inflation;

- Expected cash flows associated with value beyond proven and probable reserves, which includes the expected cash outflows required to develop and extract the value beyond proven and probable reserves; and

- Environmental remediation costs excluded from the measurement of asset retirement obligations.

We record a reduction of a group of assets to fair value as a charge to earnings if expected future cash flows are less than the carrying amount. We estimate fair value by discounting the expected future cash flows using a discount factor that reflects the risk-free rate of interest for a term consistent with the period of expected cash flows.

D Capital commitments

At December 31, 2004, we had capital commitments of $322 million for 2005/2006 in connection with construction at our development projects and of a power plant in Nevada for the Goldstrike mine.

13. CAPITALIZED MINING COSTS

We capitalize and amortize certain costs relating to the removal of waste rock at open-pit mines, commonly referred to as "stripping costs". We include in inventory, amortization of amounts capitalized 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 a mine. Instead of capitalizing and amortizing these costs, some mining companies capitalize them to inventory as incurred, which may result in the reporting of greater volatility in period-to-period results. If we followed a policy of capitalizing these costs to inventory as incurred, rather than using our present policy, our reported cost of sales would have been $9 million lower in 2004 (2003 - $37 million lower, 2002 - $29 million lower).

Stripping ratios(1)

---------------------------------------------------------------------
For the years ended         Mine life
 Dec.31                    (years)(2)        2004      2003     2002
---------------------------------------------------------------------
Goldstrike Open Pit                14       109:1     112:1    112:1
Pierina                             4        60:1      48:1     48:1
---------------------------------------------------------------------
(1) The stripping ratio is calculated as the ratio of total tons (ore
    and waste) of material to be moved compared to total recoverable
    proven and probable gold reserves.
(2) Costs capitalized will be fully amortized by the end of the mine
    lives.  The carrying amount of capitalized mining costs is
    grouped with property, plant and equipment for impairment
    evaluation purposes.



14. OTHER ASSETS

---------------------------------------------------------------------
At Dec.31                                        2004           2003
---------------------------------------------------------------------
Derivative assets (note 16C)                  $   257       $    256
Ore in stockpiles (note 11)                        65             57
Taxes recoverable                                  50             52
Deferred income tax assets (note 18)               97             59
Debt issue costs                                   38             11
Deferred stock-based compensation (note 21B)        5              6
Other                                              54             56
---------------------------------------------------------------------
                                              $   566        $   497
---------------------------------------------------------------------

Debt issue costs

Additions to debt issue costs in 2004 principally relate to new debt financings put in place during the year. Amortization of debt issue costs is calculated on a straight-line basis or using the interest method over the term of each debt obligation, and classified as a component of interest cost.

15. OTHER CURRENT LIABILITIES

---------------------------------------------------------------------
At Dec.31                                        2004           2003
---------------------------------------------------------------------
Asset retirement obligations (note 17A)         $  33        $    36
Current part of long-term debt (note 16B)          31             41
Derivative liabilities (note 16C)                  11              3
Post-retirement benefits (note 22)                  2              5
Deferred revenue                                    5             17
Other                                               1             17
---------------------------------------------------------------------
                                                $  83         $  119
---------------------------------------------------------------------

16. FINANCIAL INSTRUMENTS

Financial instruments include cash; evidence of ownership in an entity; or a contract that imposes an obligation on one party and conveys a right to a second entity to deliver/receive cash or another financial instrument. Information on certain types of financial instruments is included in these financial statements as follows: accounts receivable - note 11; investments - note 10; restricted stock units - note 21.

A Cash and equivalents

Cash and equivalents include cash, term deposits and treasury bills with original maturities of less than 90 days.

B Long-term debt

---------------------------------------------------------------------
                                                      At Dec.31
---------------------------------------------------------------------
                                                 2004           2003
---------------------------------------------------------------------
7 1/2% debentures(2)                          $   495         $  501
5 4/5% notes(3)                                   397              -
4 7/8% notes(4)                                   348              -
Veladero financing(5)                             198              -
Bulyanhulu financing(6)                           150            174
Variable-rate bonds(7)                             63             80
Capital leases                                      5              5
Construction debt under build to suit lease(8)     30              -
Other interest                                      -              -
---------------------------------------------------------------------
                                                1,686            760
Less: current part / interest capitalized        (31)           (41)
---------------------------------------------------------------------
                                              $ 1,655         $  719
---------------------------------------------------------------------


---------------------------------------------------------------------
                            For the years ended Dec.31
---------------------------------------------------------------------
                   2004                2003                2002
---------------------------------------------------------------------
            Interest Effective Interest Effective Interest Effective
                cost   rate(1)     cost   rate(1)     cost   rate(1)
---------------------------------------------------------------------
7 1/2%
 debentures(2) $  31      6.1%     $ 31      6.1%     $ 38      5.7%
5 4/5% notes(3)    3      6.0%        -         -        -         -
4 7/8% notes(4)    2      5.0%        -         -        -         -
Veladero
 financing(5)      4      7.5%        -         -        -         -
Bulyanhulu
 financing(6)     14      8.0%       15      7.7%       15      7.2%
Variable-rate
 bonds(7)          1      1.2%        1      1.1%        1      1.4%
Capital leases     -      7.8%        -      8.2%        1      7.9%
Construction debt
 under build to
 suit lease(8)     -         -        -         -         -        -
Other interest     5         -        2         -         4        -
---------------------------------------------------------------------
                  60      6.1%       49      6.3%        59     6.8%
Less: current
 part/interest
 capitalized    (41)                (5)                 (2)
---------------------------------------------------------------------
               $  19              $  44               $  57
---------------------------------------------------------------------
(1) The effective rate includes the stated interest rate under the
    debt agreement, amortization of debt issue costs, and the impact
    of interest rate contracts designated in a hedging relationship
    with long-term debt.
(2) On April 22, 1997, we issued $500 million of debentures that
    mature on May 1, 2007.
(3) On November 12, 2004, we issued $400 million of debentures that
    mature on November 15, 2034.  The debentures were issued at a $3
    million discount.
(4) On November 12, 2004, we issued $350 million of debentures that
    mature on November 15, 2014.  The debentures were issued at a $2
    million discount.
(5) One of our wholly owned subsidiaries, Minera Argentina Gold S.A.
    in Argentina has a variable-rate limited recourse amortizing loan
    facility for $250 million.  At December 31, 2004, a total of $198
    million had been drawn down under this facility.  We have
    guaranteed the loan until completion occurs, after which it will
    become non-recourse.  The loan is insured for political risks by
    branches of the Canadian and German governments.
(6) One of our wholly owned subsidiaries, Kahama Mining Corporation
    Ltd. in Tanzania, has a variable-rate non-recourse amortizing
    loan for $150 million.  The loan is insured for political risks
    equally by branches of the Canadian government and the World
    Bank.
(7) Certain of our wholly owned subsidiaries have issued
    variable-rate, tax-exempt bonds of $25 million (due 2029) and $38
    million (due 2032) for a total of $63 million.
(8) One of our wholly owned subsidiaries, Minera Barrick
    Misquichilca, has entered into a $56 million build to suit lease
    facility to finance the construction of the leach pad and process
    facilities at the Lagunas Norte project.  The five year lease
    term begins on October 1, 2005.  Amounts reimbursed for
    construction costs at December 31, 2004 have been presented as
    "construction debt" until the lease term begins. Obligations
    under the lease will be repayable in 20 equal quarterly
    installments over the term of the lease.
(9) We also have a credit and guarantee agreement with a group of
    banks (the "Lenders"), which requires the Lenders to make
    available to us a credit facility of up to $1 billion or the
    equivalent amount in Canadian currency.  The credit facility,
    which is unsecured, matures in April 2008 and has an interest
    rate of LIBOR plus 0.27% to 0.35% when used, and an annual
    fee of 0.08%.  We have not drawn any amounts under the credit
    facility.


Scheduled debt repayments(1)

---------------------------------------------------------------------
                                                            2009 and
                              2005   2006   2007   2008   thereafter
---------------------------------------------------------------------
7 1/2% debentures           $    -   $  - $  500  $   -         $  -
5 4/5% notes                     -      -      -      -          400
4 7/8% notes                     -      -      -      -          350
Veladero financing               -     24     46     38           90
Bulyanhulu financing            31     34     34     34           17
Variable-rate bonds              -      -      -      -           63
---------------------------------------------------------------------
                             $  31  $  58 $  580  $  72     $    920
---------------------------------------------------------------------
(1) Excludes capital leases and build to suit lease facility.


Minimum payments under capital leases(1)

---------------------------------------------------------------------
Years ending Dec.31
---------------------------------------------------------------------
2005                                                           $  12
2006                                                              15
2007                                                              12
2008                                                              11
2009                                                              11
---------------------------------------------------------------------
Capital lease obligations                                      $  61
---------------------------------------------------------------------
(1) Includes the $56 million build to suit lease facility.

C Use of derivative instruments ("derivatives") in risk management

In the normal course of business, our assets, liabilities and forecasted transactions are impacted by various market risks including:

---------------------------------------------------------------------
Item                                Impacted by
---------------------------------------------------------------------
- Cost of sales
---------------------------------------------------------------------
 - Consumption of oil and           - Prices of oil and propane
    propane
---------------------------------------------------------------------
 - Local currency denominated       - Currency exchange rates -
    expenditures                       US dollar versus A$ and C$
---------------------------------------------------------------------
- Administration costs in local     - Currency exchange rates -
   currencies                          US dollar versus A$ and C$
---------------------------------------------------------------------
- Capital expenditures in local     - Currency exchange rates - US
   currencies                          dollar versus A$, C$ and EURO
---------------------------------------------------------------------
- Interest earned on cash           - US dollar interest rates
---------------------------------------------------------------------
- Interest payments on              - US dollar interest rates
   variable-rate debt
---------------------------------------------------------------------
- Fair value of fixed-rate debt     - US dollar interest rates
---------------------------------------------------------------------

Under our risk management policy we seek to mitigate the impact of these market risks to control costs and enable us to plan our business with greater certainty. The timeframe and manner in which we manage these risks varies for each item based upon our assessment of the risk and available alternatives for mitigating risk. For these particular risks, we believe that derivatives are an effective means of managing risk.

The primary objective of the hedging elements of our derivative positions is that changes in the values of hedged items are offset by changes in the values of derivatives. Most of the derivatives we use meet the FAS 133 hedge effectiveness criteria and are designated in a hedge accounting relationship. Some of the derivative positions are effective in achieving our risk management objectives but they do not meet the strict FAS 133 hedge effectiveness criteria, and they are classified as "non-hedge derivatives".

Our use of derivatives is based on established practices and parameters, which are subject to the oversight of the Finance Committee of the Board of Directors. A Compliance Function independent of the Corporate Treasury Group monitors derivative transactions and has responsibility for recording and accounting for derivatives.

Accounting policy for derivatives

We record derivatives on the balance sheet at fair value except for gold and silver sales contracts, which are excluded from the scope of FAS 133, because the obligations will be met by physical delivery of our gold and silver production and they meet the other requirements set out in paragraph 10(b) of FAS 133. In addition, our past sales practices, productive capacity and delivery intentions are consistent with the definition of a normal sales contract. Accordingly, we have elected to designate our gold and silver sales contracts as "normal sales contracts" with the result that the principles of FAS 133 are not applied to them. Instead we apply revenue recognition accounting principles as described in note 4.

On the date we enter into a derivative that is accounted for under FAS 133, we designate it as either a hedging instrument or a non-hedge derivative. A hedging instrument is designated in either:

- a fair value hedge relationship with a recognized asset or liability; or

- a cash flow hedge relationship with either a forecasted transaction or the variable future cash flows arising from a recognized asset or liability.

At the inception of a hedge, we formally document all relationships between hedging instruments and hedged items, including the related risk-management strategy. This documentation includes linking all hedging instruments to either specific assets and liabilities, specific forecasted transactions or variable future cash flows. It also includes the method of assessing retrospective and prospective hedge effectiveness. In cases where we use regression analysis to assess prospective effectiveness, we consider regression outputs for the coefficient of determination (R-squared), the slope coefficient and the t-statistic to assess whether a hedge is expected to be highly effective. Each period, using a dollar offset approach, we retrospectively assess whether hedging instruments have been highly effective in offsetting changes in the fair value of hedged items and we measure the amount of any hedge ineffectiveness. We also assess each period whether hedging instruments are expected to be highly effective in the future. If a hedging instrument is not expected to be highly effective, we stop hedge accounting prospectively. In this case accumulated gains or losses remain in other comprehensive income ("OCI") until the hedged item affects earnings. We also stop hedge accounting prospectively if:

- a derivative is settled;

- it is no longer highly probable that a forecasted transaction will occur; or

- we de-designate a hedging relationship.

If we conclude that it is probable that a forecasted transaction will not occur in the originally specified time frame, or within a further two-month period, gains and losses accumulated in OCI are immediately transferred to earnings. In all situations when hedge accounting stops, a derivative is classified as a non-hedge derivative prospectively. Cash flows from derivative transactions are included under operating activities, except for derivatives designated as a cash flow hedge of forecasted capital expenditures, which are included under investing activities.

Changes in the fair value of derivatives each period are recorded as follows:

- Fair value hedges: recorded in earnings as well as changes in fair value of the hedged item.

- Cash flow hedges: recorded in OCI until earnings are affected by the hedged item, except for any hedge ineffectiveness which is recorded in earnings immediately.

- Non-hedge derivatives: recorded in earnings.

Summary of derivatives at Dec.31, 2004(1)

---------------------------------------------------------------------

                              Notional Amount by Term to Maturity
---------------------------------------------------------------------
                                   Within   2 to 5   Over 5
                                   1 year    years    years    Total
---------------------------------------------------------------------
US dollar Interest rate contracts
Receive-fixed swaps (millions)    $    75   $  725     $  -   $  800
Pay-fixed swaps (millions)              -      150      125      275
---------------------------------------------------------------------
Net notional position             $    75   $  575  $ (125)   $  525
---------------------------------------------------------------------
Currency contracts
C$:US$ contracts (C$ millions)   C$   350  C$  600 C$     -  C$  950
A$:US$ contracts (A$ millions)   A$   844 A$ 1,291 A$     - A$ 2,135
EUR:US$ contracts (EUR millions) EUR   26  EUR   - EUR    - EUR   26
---------------------------------------------------------------------
Commodity contracts
Fuel (WTI) (thousands of barrels)     738    1,618        -    2,356
Propane contracts
 (millions of gallons)                 11       18        -       29
---------------------------------------------------------------------


---------------------------------------------------------------------
                                                                Fair
                             Accounting Classification by      value
                                     Notional Amount      (millions)
---------------------------------------------------------------------
                       Cash flow    Fair value
                           hedge         hedge  Non-Hedge
---------------------------------------------------------------------
US dollar Interest
 rate contracts
Receive-fixed swaps
 (millions)              $   300    $      500      $   -   $    (5)
Pay-fixed swaps
 (millions)                  150             -        125       (24)
---------------------------------------------------------------------
Net notional position   $    150        $  500   $  (125)    $  (29)
---------------------------------------------------------------------
Currency contracts
C$:US$ contracts
 (C$ millions)           C$  935         C$  -   C$    15    $    99
A$:US$ contracts
 (A$ millions)          A$ 2,125         A$  -     A$  10    $   198
EUR:US$ contracts
 (EUR millions)         EUR   26         EUR -   EUR    -    EUR   1
---------------------------------------------------------------------
Commodity contracts
Fuel (WTI)
 (thousands of barrels)    1,946             -        410    $     7
Propane contracts
 (millions of gallons)        29             -          -     $  (3)
---------------------------------------------------------------------
(1) Excludes normal sales contracts

    US dollar interest rate contracts

    Cash flow hedges - cash balances

Receive-fixed swaps have been designated against the first $300 million of our cash balances as a hedge of the variability of forecasted interest receipts on the balances caused by changes in Libor.

Prior to December 2004, prospective and retrospective hedge effectiveness was assessed using the hypothetical derivative method under FAS 133. The prospective test involves comparing the effect of a theoretical shift in the forward interest rate curve on the fair value of both the actual and hypothetical derivative. The retrospective test involves comparing the effect of actual changes in interest rates in each period on the fair value of both the actual and hypothetical derivative using a dollar offset approach. In December 2004, we de-designated these swaps and immediately re-designated them in a new hedging relationship in order to adopt a new method of assessing prospective and retrospective effectiveness. At the time of the redesignation these swaps had a fair value near zero. From December 2004 onwards, under the new method, prospective and retrospective hedge effectiveness is assessed using the change in variable cash flows method. This involves a comparison of the floating-rate leg of the swap to the variable-rate cash flows from interest receipts on cash.

Each period the effective portion of changes in the fair value of the swaps, which relates to future interest receipts, is recorded in OCI. Also, as interest is received and recorded in earnings, an amount equal to the difference between the fixed-rate interest earned on the swaps and the variable-rate interest earned on cash is recorded in earnings as a component of interest income.

Cash flow hedges - Bulyanhulu financing

Pay-fixed swaps totaling $150 million have been designated against the Bulyanhulu financing, as a hedge of the variability in forecasted interest payments caused by changes in Libor. We have concluded that the hedges are 100% effective under FAS 133, because the conditions of FAS 133 for the assumption of no hedge ineffectiveness have been met. Changes in fair value of the swaps, which relate to future interest payments, are recorded in OCI. Also, as interest payments on the financing are recorded in earnings, an amount equal to the difference between the fixed-rate interest paid on the swap and the variable-rate interest paid on the financing is recorded in earnings as a component of interest costs.

Fair value hedges

Receive-fixed swaps totaling $500 million have been designated against the 7 1/2% debentures as a hedge of the variability in the fair value of the debentures caused by changes in Libor. We have concluded that the hedges are 100% effective under FAS 133, because the critical terms (including: notional amount, maturity date, interest payment and underlying interest rate - i.e. Libor) of the swaps and the debentures are the same. Changes in fair value of the swaps, together with an equal corresponding change in fair value of the debentures, caused by changes in Libor, are recorded in earnings each period. Also, as interest payments on the debentures are recorded in earnings, an amount equal to the difference between the fixed-rate interest received under the swap less the variable-rate interest paid under the swap is recorded in earnings as a component of interest costs.

Non-hedge contracts

We use gold lease rate swaps as described in note 4. The valuation of gold lease rate swaps is impacted by market US dollar interest rates. Our non-hedge pay-fixed swap position mitigates the impact of changes in US dollar interest rates on the valuation of gold lease rate swaps.

    Currency contracts

    Cash flow hedges

Currency contracts totaling C$935 million, A$2,125 million and EURO 26 million have been designated against forecasted local currency denominated expenditures as a hedge of the variability of the US dollar amount of those expenditures caused by changes in currency exchange rates. Hedged items are identified as the first stated quantity of dollars of forecasted expenditures in a future month. For a C$730 million and A$1,671 million portion of the contracts, we have concluded that the hedges are 100% effective under FAS 133 because the critical terms (including: notional amount and maturity date) of the hedged items and currency contracts are the same. For EUR 26 million, and the remaining C$205 million and A$454 million portions, prospective and retrospective hedge effectiveness is assessed using the hypothetical derivative method under FAS 133. The prospective test involves comparing the effect of a theoretical shift in forward exchange rates on the fair value of both the actual and hypothetical derivative. The retrospective test involves comparing the effect of historic changes in exchange rates each period on the fair value of both the actual and hypothetical derivative using a dollar offset approach. The effective portion of changes in fair value of the currency contracts is recorded in OCI until the forecasted expenditure impacts earnings. For expenditures capitalized to the cost of inventory, this is upon sale of inventory, and for capital expenditures, this is when amortization of the capital assets is recorded in earnings.

If it is probable that a hedged item will no longer occur, the accumulated gains or losses in OCI for the associated currency contract are reclassified to earnings immediately. The identification of which currency contracts are associated with these hedged items uses a last-in, first-out ("LIFO") approach, based on the order in which currency contracts were originally designated in a hedging relationship.

    Commodity contracts

    Cash flow hedges

Commodity contracts totaling 1,946 thousand barrels of diesel fuel and 29 million gallons of propane have been designated against forecasted purchases of the commodities for expected consumption at our mining operations. The contracts act as a hedge of the impact of variability in market prices on the cost of future commodity purchases. Hedged items are identified as the first stated quantity in millions of barrels/gallons of forecasted purchases in a future month. Prospective and retrospective hedge effectiveness is assessed using the hypothetical derivative method under FAS 133. The prospective test is based on regression analysis of the month-on-month change in fair value of both the actual derivative and a hypothetical derivative caused by actual historic changes in commodity prices over the last three years. The retrospective test involves comparing the effect of historic changes in commodity prices each period on the fair value of both the actual and hypothetical derivative using a dollar offset approach. The effective portion of changes in fair value of the commodity contracts is recorded in OCI until the forecasted transaction impacts earnings. The cost of commodity consumption is capitalized to the cost of inventory, and therefore this is upon the sale of inventory.

If it is probable that a hedged item will no longer occur, the accumulated gains or losses in OCI for the associated commodity contract are reclassified to earnings immediately. The identification of which commodity contracts are associated with these hedged items uses a LIFO approach, based on the order in which commodity contracts were originally designated in a hedging relationship.

Non-hedge contracts

Non-hedge fuel contracts are used to mitigate the risk of oil price changes on consumption at the Pierina, Eskay Creek and Lagunas Norte mines. On completion of regression analysis, we concluded that the contracts do not meet the "highly effective" criterion in FAS 133 due to currency and basis differences between contract prices and the prices charged to the mines by oil suppliers. Despite not qualifying as an accounting hedge, the contracts protect the Company to a significant extent from the effects of oil price changes.

Derivative assets and liabilities

---------------------------------------------------------------------
                                                 2004           2003
---------------------------------------------------------------------
At Jan.1                                       $  337          $  29
Derivatives settled                             (120)           (91)
Change in fair value of:
 Non-hedge derivatives                              3             52
 Cash flow hedges
  Effective portion                               147            348
  Ineffective portion                               -              1
 Fair value hedges                                (8)            (2)
---------------------------------------------------------------------
At Dec.31                                   $  359(1)      $  337(1)
---------------------------------------------------------------------
Classification:
Other current assets                           $  165         $  154
Other assets                                      257            256
Other current liabilities                        (11)            (3)
Other long-term obligations                      (52)           (70)
---------------------------------------------------------------------
                                               $  359         $  337
---------------------------------------------------------------------
(1) Derivative assets and liabilities are presented net and related
    amounts due to/from counterparties if the conditions of FIN No.
    39, Offsetting of Amounts Related to Certain Contracts, are met.
    Amounts receivable from counterparties netted against derivative
    liabilities totaled $16 million at December 31, 2004.



Non-hedge derivative gains (losses)(1)

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Non-hedge derivatives
 Commodity contracts                      $  (9)      $  3    $  (2)
 Currency contracts                          (4)        17         8
 Interest rate contracts                      16        32      (12)
---------------------------------------------------------------------
                                               3        52       (6)
Hedge ineffectiveness
 Ongoing hedge inefficiency                    -         1         -
 Due to changes in timing of
  hedged items                                 2        18         -
---------------------------------------------------------------------
                                            $  5   $    71    $  (6)
---------------------------------------------------------------------
(1) Non-hedge derivative gains (losses) are classified as a component
    of other (income) expense.


Cash Flow Hedge Gains (Losses) in OCI

---------------------------------------------------------------------
                                           Commodity price hedges
---------------------------------------------------------------------
                                      Gold/Silver               Fuel
---------------------------------------------------------------------
At Dec.31, 2001                              $ 25         $        -
Effective portion of change in
 fair value of hedging instruments            (4)                  -
Transfers to earnings:
On recording hedged items in earnings        (12)                  -
---------------------------------------------------------------------
At Dec.31, 2002                                 9                  -
Effective portion of change in fair
 value of hedging instruments                   4                (1)
Transfers to earnings:
 On recording hedged items in earnings       (13)                  -
 Hedge ineffectiveness due to changes in
  timing of hedged items                        -                  -
---------------------------------------------------------------------
At Dec.31, 2003                                 -                (1)
Effective portion of change in fair value of
 hedging instruments                            -                  7
Transfers to earnings:
 On recording hedged items in earnings          -                (4)
 Hedge ineffectiveness due to changes in
  timing of hedged items                        -                  -
---------------------------------------------------------------------
At Dec.31, 2004                               $ -               $  2
---------------------------------------------------------------------
                                             Gold            Cost of
Hedge gains/losses classified within        Sales              sales
---------------------------------------------------------------------
Portion of hedge gain (loss) expected to
 affect 2005 earnings(2)                     $  -               $  3
---------------------------------------------------------------------


                                        Currency hedges
---------------------------------------------------------------------
                          Operating  Administration        Capital
                              costs           costs   expenditures
---------------------------------------------------------------------
At Dec.31, 2001                $  -            $  -          $   -
Effective portion of change
 in fair value of
 hedging instruments             33               -              -
Transfers to earnings:
On recording hedged items
 in earnings                    (7)               -              -
---------------------------------------------------------------------
At Dec.31, 2002                  26               -              -
Effective portion of change in
 fair value of
 hedging instruments            251              32             54
Transfers to earnings:
 On recording hedged items in
  earnings                     (58)             (7)              -
 Hedge ineffectiveness due to
  changes in timing of
  hedged items                    -               -         (18)(1)
---------------------------------------------------------------------
At Dec.31, 2003                 219              25             36
Effective portion of change
 in fair value of hedging
 instruments                    117              19             19
Transfers to earnings:
 On recording hedged items
  in earnings                  (96)            (11)            (5)
 Hedge ineffectiveness due to
  changes in timing of
  hedged items                    -               -         (2)(1)
---------------------------------------------------------------------
At Dec.31, 2004              $  240           $  33          $  48
---------------------------------------------------------------------
Hedge gains/losses          Cost of
 classified within            sales  Administration   Amortization
---------------------------------------------------------------------
Portion of hedge gain (loss)
 expected to affect 2005
 earnings(2)                 $  110           $  18           $  2
---------------------------------------------------------------------


---------------------------------------------------------------------
                                       Interest rate hedges
---------------------------------------------------------------------
                                          Cash    Long-term
                                      balances         debt    Total
---------------------------------------------------------------------
At Dec.31, 2001                           $  -         $  -    $  25
Effective portion of change in
 fair value of hedging instruments          37         (17)       49
Transfers to earnings:
On recording hedged items in earnings     (11)            5     (25)
---------------------------------------------------------------------
At Dec.31, 2002                             26         (12)       49
Effective portion of change in fair
 value of hedging instruments                9          (1)      348
Transfers to earnings:
 On recording hedged items in earnings    (18)            5     (91)
 Hedge ineffectiveness due to changes in
  timing of hedged items                     -            -     (18)
---------------------------------------------------------------------
At Dec.31, 2003                             17          (8)      288
Effective portion of change in fair
 value of hedging instruments                5         (20)      147
Transfers to earnings:
 On recording hedged items in earnings    (19)            3    (132)
 Hedge ineffectiveness due to changes in
  timing of hedged items                     -            -      (2)
---------------------------------------------------------------------
At Dec.31, 2004                           $  3      $  (25) $ 301(2)
---------------------------------------------------------------------
                                      Interest     Interest
Hedge gains/losses classified within    income         cost
---------------------------------------------------------------------
Portion of hedge gain (loss) expected
 to affect 2005 earnings(2)               $  7   $      (4) $    136
---------------------------------------------------------------------
(1) On determining that certain forecasted capital expenditures were
    no longer likely to occur within two months of the originally
    specified time frame.
(2) Based on the fair value of hedge contracts at December 31, 2004.

D Fair Value of Financial Instruments

Fair value is the value at which a financial instrument could be closed out or sold in a transaction with a willing and knowledgeable counterparty over a period of time consistent with our risk management or investment strategy. Fair value is based on quoted market prices, where available. If market quotes are not available, fair value is based on internally developed models that use market-based or independent information as inputs. These models could produce a fair value that may not be reflective of future fair value.

Fair value information

---------------------------------------------------------------------
At Dec.31                        2004                  2003
---------------------------------------------------------------------
                         Carrying   Estimated   Carrying   Estimated
                           amount  fair value     amount  fair value
---------------------------------------------------------------------
Financial assets
Cash and equivalents(1)   $ 1,398     $ 1,398     $  970      $  970
Accounts receivable(1)         58          58         56          56
Investments(2)                134         134        130         130
Derivative assets(3)          422         422        410         410
---------------------------------------------------------------------
                          $ 2,012     $ 2,012    $ 1,566     $ 1,566
---------------------------------------------------------------------
Financial liabilities
 Accounts payable(1)      $   335      $  335   $    245    $    245
 Long-term debt(4)          1,686       1,731        760         841
 Derivative liabilities(3)     63          63         73          73
 Restricted stock units(5)      6           6         10          10
---------------------------------------------------------------------
                         $  2,090    $  2,135   $  1,088    $  1,169
---------------------------------------------------------------------
(1) Recorded at cost. Fair value approximates the carrying amounts
    due to the short-term nature and generally negligible credit
    losses.
(2) Recorded at fair value. Quoted market prices, when available, are
    used to determine fair value. If quoted market prices are not
    available, then fair values are estimated by using quoted prices
    of instruments with similar characteristics or discounted cash
    flows.
(3) Recorded at fair value using liquid market pricing based on
    exchange traded prices, broker-dealer quotations or related input
    factors which assume all counterparties have the same credit
    rating.
(4) Long-term debt is generally recorded at cost except for
    obligations that are designated in a fair value hedge
    relationship, which are recorded at fair value in periods where a
    hedge relationship exists. The fair value of long-term debt is
    based on current market interest rates, adjusted for our credit
    quality.
(5) Recorded at fair value based on the period end market stock
    price.

E Credit risk

Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. For cash and equivalents and accounts receivable, credit risk represents the carrying amount on the balance sheet.

For derivatives, when the fair value is positive, this creates credit risk. When the fair value of a derivative is negative, we assume no credit risk. In cases where we have a legally enforceable master netting agreement with a counterparty, credit risk exposure represents the net amount of the positive and negative fair values for similar types of derivatives. For a net negative amount, we regard credit risk as being zero. A net positive amount for a counterparty is a reasonable measure of credit risk when there is a legally enforceable master netting agreement. We mitigate credit risk by:

- entering into derivatives with high credit-quality counterparties;

    - limiting the amount of exposure to each counterparty; and

    - monitoring the financial condition of counterparties.

Credit quality of financial assets

---------------------------------------------------------------------
At Dec.31, 2004                      S&P Credit rating
---------------------------------------------------------------------
                               AA- or    A- or
                               higher    higher    B to BBB    Total
---------------------------------------------------------------------
Cash and equivalents           $  744  $    654        $  -  $ 1,398
Derivatives(1)                    303        71           -      374
Accounts receivable                 -         -          58       58
---------------------------------------------------------------------
                           $    1,047  $    725     $    58  $ 1,830
---------------------------------------------------------------------
Number of counterparties(2)        14         5           -
---------------------------------------------------------------------
Largest counterparty (%)         31.5      35.1           -
---------------------------------------------------------------------

Concentrations of credit risk

---------------------------------------------------------------------
                              United                   Other
At Dec.31, 2004               States   Canada  International   Total
---------------------------------------------------------------------
Cash and equivalents       $   1,172 $     69         $  157 $ 1,398
Derivatives(1)                   145      193             36     374
Accounts receivable                7       22             29      58
---------------------------------------------------------------------
                           $   1,324  $   284      $     222 $ 1,830
---------------------------------------------------------------------
(1) The amounts presented reflect the net credit exposure after
    considering the effect of master netting agreements.
(2) For cash and equivalents and derivatives combined.

F Risks relating to the use of derivatives

By using derivatives, in addition to credit risk, we are affected by market risk and market liquidity risk. Market risk is the risk that the fair value of a derivative might be adversely affected by a change in commodity prices, interest rates, gold lease rates, or currency exchange rates, and that this in turn affects our financial condition. We manage market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. We mitigate this risk by establishing trading agreements with counterparties under which we are not required to post any collateral or make any margin calls on our derivatives. Our counterparties cannot require settlement solely because of an adverse change in the fair value of a derivative.

Market liquidity risk is the risk that a derivative cannot be eliminated quickly, by either liquidating it or by establishing an offsetting position. Under the terms of our trading agreements, counterparties cannot require us to immediately settle outstanding derivatives, except upon the occurrence of customary events of default such as covenant breaches, including financial covenants, insolvency or bankruptcy. We generally mitigate market liquidity risk by spreading out the maturity of our derivatives over time.

17. OTHER LONG-TERM OBLIGATIONS

---------------------------------------------------------------------
At Dec.31                                        2004           2003
---------------------------------------------------------------------
Asset retirement obligations                   $  334         $  282
Pension benefits (note 22)                         49             48
Post-retirement benefits (note 22)                 26             26
Derivative liabilities (note 16C)                  52             70
Restricted stock units (note 21B)                   6             10
Other                                              32             28
---------------------------------------------------------------------
                                                $ 499         $  464
---------------------------------------------------------------------

A  Asset retirement obligations (AROs)

---------------------------------------------------------------------
                                                 2004           2003
---------------------------------------------------------------------
At Jan.1                                      $   318         $  334
AROs incurred in the period                        14              -
Impact of revisions to expected cash flows
 Adjustments to carrying amount of assets          32              -
 Charged to earnings                               22             10
Settlements
 Cash payments                                   (33)           (40)
 Settlement gains                                 (4)            (3)
Accretion                                          18             17
---------------------------------------------------------------------
At Dec.31                                         367            318
Current part                                     (33)           (36)
---------------------------------------------------------------------
                                              $   334         $  282
---------------------------------------------------------------------

In 2003 we adopted FAS 143 and changed our accounting policy for reclamation and closure costs. Previously we accrued estimated reclamation and closure costs over the life of our mines using the units-of-production method based on the estimated recoverable ounces of gold in proven and probable reserves.

AROs arise from the acquisition, development, construction and normal operation of mining property, plant and equipment, due to government controls and regulations that protect the environment on the closure and reclamation of mining properties. Under FAS 143 we record the fair value of an ARO when it is incurred. At operating mines the effect is recorded as an adjustment to the corresponding asset carrying amount. At closed mines, the adjustment is charged directly to earnings. The fair value of AROs are measured by discounting the expected cash flows using a discount factor that reflects the risk-free rate of interest. We prepare estimates of timing and amount of expected cash flows when an ARO is incurred, which are updated to reflect changes in facts and circumstances, or if we are required to submit updated mine closure plans to regulatory authorities. The principal factors that can cause expected cash flows to change are: the construction of new processing facilities; changes in the quantities of material in reserves and a corresponding change in the life of mine plan; changing ore characteristics can impact required environmental protection measures and related costs; changes in water quality that impact the extent of water treatment required; and changes in laws and regulations governing the protection of the environment. In general, as the end of the mine life becomes nearer, the reliability of expected cash flows increases. AROs are adjusted to reflect the passage of time (accretion) calculated by applying the discount factor implicit in the initial fair value measurement to the beginning of period carrying amount of the AROs. Accretion is recorded in earnings as an operating expense. Upon settlement of an ARO we record a gain or loss if the actual cost differs from the carrying amount of the ARO. Settlement gains are classified in other (income) expense. Other environmental remediation costs that are not AROs as defined by FAS 143 are expensed as incurred (see note 6).

The major parts of the carrying amount of AROs at the end of 2004 relate to: tailing and heap leach pad closure/ rehabilitation - $69 million; demolition of buildings/mine facilities - $29 million; ongoing water treatment - $93 million; ongoing care and maintenance - $89 million; and other activities - $87 million.

    18. DEFERRED INCOME TAXES

    Recognition and measurement

We record deferred income tax assets and liabilities where temporary differences exist between the carrying amounts of assets and liabilities in our balance sheet and their tax bases. The measurement and recognition of deferred income tax assets and liabilities takes into account: enacted rates that will apply when temporary differences reverse; interpretations of relevant tax legislation; tax planning strategies; estimates of the tax bases of assets and liabilities; and the deductibility of expenditures for income tax purposes. We recognize the effect of changes in our assessment of these estimates and factors when they occur. Changes in deferred income tax assets, liabilities and valuation allowances are allocated between net income and other comprehensive income based on the source of the change.

Deferred income taxes have not been provided on the undistributed earnings of foreign subsidiaries, which are considered to be reinvested indefinitely outside Canada. The determination of the unrecorded deferred income tax liability is not considered practicable.

Sources of deferred income tax assets and liabilities

---------------------------------------------------------------------
At Dec.31                                        2004        2003(1)
---------------------------------------------------------------------
Deferred tax assets
 Tax loss carry forwards                       $  295         $  388
 Capital tax loss carry forwards                   48             52
 Alternative minimum tax ("AMT")credits           121            120
 Foreign tax credits                                3              3
 Asset retirement obligations                     106             85
 Property, plant and equipment                    158            129
 Post-retirement benefit obligations               18             21
 Other                                              9             40
---------------------------------------------------------------------
 Gross deferred tax assets                        758            838
 Valuation allowances                           (578)          (554)
---------------------------------------------------------------------
Net deferred tax assets                           180            284
Deferred tax liabilities
 Property, plant and equipment                  (127)          (443)
 Derivatives                                     (95)           (99)
---------------------------------------------------------------------
                                              $  (42)       $  (258)
---------------------------------------------------------------------
Classification:
 Non-current assets (note 14)                    $ 97           $ 59
 Non-current liabilities                        (139)          (317)
---------------------------------------------------------------------
                                               $ (42)       $  (258)
---------------------------------------------------------------------
(1) 2003 deferred tax asset balances for property, plant and
    equipment and other have been restated with a corresponding
    restatement of valuation allowances.




Expiry dates of tax losses and AMT credits
---------------------------------------------------------------------
                                                          No
                                                      expiry
                         '05   '06   '07   '08   '09+   date   Total
---------------------------------------------------------------------
Tax losses(1)
 Chile                $    -  $  -  $  - $   -   $  -  $ 670   $ 670
 Tanzania                  -     -     -     -      -    152     152
 U.S.                      -     -     -     -    224      -     224
 Other                    28    23     6    14    109     24     204
---------------------------------------------------------------------
                      $   28  $ 23  $  6 $  14   $333  $ 846  $1,250
---------------------------------------------------------------------
AMT credits(2)             -     -     -     -      -  $ 121  $  121
---------------------------------------------------------------------
(1) Represents the gross amount of tax loss carry forwards translated
    at closing exchange rates at December 31, 2004.
(2) Represents the amounts deductible against future taxes payable in
    years when taxes payable exceeds "minimum tax" as defined by
    United States tax legislation.

Valuation allowances

We consider the need to record a valuation allowance against deferred tax assets on a country-by-country basis, taking into account the effects of local tax law. A valuation allowance is not recorded when we conclude that sufficient positive evidence exists to demonstrate that it is more likely than not that a deferred tax asset will be realized. The main factors considered are:

- historic and expected future levels of future taxable income;

- opportunities to implement tax plans that affect whether tax assets can be realized; and

- the nature, amount and expected timing of reversal of taxable temporary differences.

Levels of future taxable income are mainly affected by: market gold and silver prices; forecasted future costs and expenses to produce gold reserves; quantities of proven and probable gold reserves; market interest rates and foreign currency exchange rates. If these factors or other circumstances change, we record an adjustment to the valuation allowances to reflect our latest assessment of the amount of deferred tax assets that will more likely than not be realized.

A valuation allowance of $34 million has been set up against certain deferred tax assets in Argentina. Historically, we have had no income generating operations in Argentina, but following the production start-up at Veladero in 2005, various factors will affect future levels of taxable income in Argentina, including the volume of gold produced and sold, gold selling prices and costs incurred to produce gold. It is reasonably possible that an adjustment will be made to this valuation allowance in the near term. A valuation allowance of $189 million has been set up against certain deferred tax assets in the United States. A majority of this valuation allowance relates to AMT credits which have an unlimited carry forward period. Increasing levels of future taxable income due to gold selling prices and other factors and circumstances may result in an adjustment to this valuation allowance.

Source of changes in deferred tax balances

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Temporary differences
Property, plant and equipment             $ (86)    $   26    $ (30)
Asset retirement obligations                (21)       (2)         4
Tax loss carry forwards                       93      (10)      (22)
Derivatives                                  (4)        82        13
Other                                        (5)         4       (5)
---------------------------------------------------------------------
                                          $ (23)     $ 100    $ (40)

Adjustment to deferred tax balances
 due to change in tax status(1)             (81)         -         -
Release of beginning of year
 valuation allowances                        (5)      (62)         -
Outcome of tax uncertainties               (120)         -      (22)
---------------------------------------------------------------------
                                         $ (229)    $   38    $ (62)
---------------------------------------------------------------------
Intraperiod allocation to:
 Income before income taxes              $ (225)    $ (49)    $ (75)
 Cumulative accounting changes                 -         5         -
 OCI                                         (4)        82        17
Balance sheet reclassifications               13        23      (17)
---------------------------------------------------------------------
                                         $ (216)     $  61    $ (75)
---------------------------------------------------------------------
(1) Relates to change in tax status in Australia (note 7).

    19. CAPITAL STOCK

    A Common shares

Our authorized capital stock includes an unlimited number of common shares (issued 533,575,185 shares); 9,764,929 First preferred shares, Series A (issued nil); 9,047,619 Series B (issued nil); 1 Series C special voting share (issued 1); and 14,726,854 Second preferred shares Series A (issued nil).

During 2004, we repurchased 4.47 million common shares (2003: 8.75 million) for $95 million (2003: $154 million), at an average cost of $21.20 per share (2003: $17.56). This resulted in a reduction of common share capital by $35 million (2003: $67 million) and a $60 million charge (being the difference between the repurchase cost and the average historic book value of shares repurchased) to retained earnings (2003: $87 million).

In 2004, we declared and paid dividends in US dollars totaling $0.22 per share (2003 - $0.22 per share, 2002 - $0.22 per share).

B Exchangeable Shares

In connection with a 1998 acquisition, Barrick Gold Inc. ("BGI"), issued 11.1 million BGI exchangeable shares, which are each exchangeable for 0.53 of a Barrick common share at any time at the option of the holder, and have 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, 2004, 1.4 million (2003 - 1.5 million) BGI exchangeable shares were outstanding, which are equivalent to 0.7 million Barrick common shares (2003 - 0.8 million 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.

Summarized financial information for BGI

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Total revenues and other income         $    216    $  226    $  203
Less: costs and expenses                     287       238       191
---------------------------------------------------------------------
Income (loss) before taxes              $   (71)   $  (12)  $     12
---------------------------------------------------------------------
Net loss                                $   (41)   $  (31)  $    (1)
---------------------------------------------------------------------

---------------------------------------------------------------------
At Dec.31                                        2004           2003
---------------------------------------------------------------------
Assets
 Current assets                                 $  67          $  81
 Non-current assets                               119            236
---------------------------------------------------------------------
                                                $ 186         $  317
---------------------------------------------------------------------
Liabilities and shareholders' equity
 Other current liabilities                         24             20
 Intercompany notes payable                       395            545
 Other long-term liabilities                       36              9
 Deferred income taxes                             20             67
 Shareholders' equity                           (289)          (324)
---------------------------------------------------------------------
                                                $ 186         $  317
---------------------------------------------------------------------


20. OTHER COMPREHENSIVE INCOME (LOSS) ("OCI")

---------------------------------------------------------------------
                                            2004      2003      2002
---------------------------------------------------------------------
Accumulated OCI at Jan.1
 Cash flow hedge gains, net of tax
  of $99, $17, nil                         $ 189     $  32     $  25
 Investments, net of tax of $nil, $nil,
  $nil                                        38       (6)       (4)
 Currency translation adjustments,
  net of tax of $nil, $nil, $nil           (147)     (144)     (123)
 Additional pension liability, net
  of tax of $nil, $nil, $nil                 (7)       (7)       (5)
---------------------------------------------------------------------
                                           $  73   $ (125)   $ (107)
---------------------------------------------------------------------
OCI for the year:
 Changes in fair value of cash flow hedges   147       348        49
 Changes in fair value of investments       (27)        37       (5)
 Currency translation adjustments              1       (3)      (21)
 Adjustments to pension liability            (5)         -       (2)
Less: reclassification adjustments for
 gains/losses recorded in earnings
 Transfers of cash flow hedge gains to
  earnings:
  On recording hedged items in earnings    (132)      (91)      (25)
  Hedge ineffectiveness due to changes
   in timing of hedged items                 (2)      (18)         -
Investments:
 (Gains) losses realized on sale             (6)       (4)         3
 Other than temporary impairment charges       5        11         -
---------------------------------------------------------------------
OCI, before tax                             (19)       280       (1)
Income tax expense related to OCI              4      (82)      (17)
---------------------------------------------------------------------
Other comprehensive income (loss),
 net of tax                               $ (15)     $ 198    $ (18)
---------------------------------------------------------------------
Accumulated OCI at Dec.31
 Cash flow hedge gains, net of tax
  of $95, $99, $17                           206       189        32
 Investments, net of tax of $nil,
  $nil, $nil                                  10        38       (6)
 Currency translation adjustments,
  net of tax of $nil, $nil, $nil           (146)     (147)     (144)
 Additional pension liability, net of
  tax of $nil, $nil, $nil                   (12)       (7)       (7)
---------------------------------------------------------------------
                                           $  58     $  73    $(125)
---------------------------------------------------------------------


21. STOCK-BASED COMPENSATION

A Stock options

Employee stock option activity (number of shares in millions)(2)
---------------------------------------------------------------------
                         2004            2003             2002
---------------------------------------------------------------------
                           Average          Average          Average
                   Shares    price   Shares   price   Shares   price
---------------------------------------------------------------------
C$ options
At Jan.1               22                19               19
 Granted                1     $ 28        5    $ 29        6   $  25
 Exercised(1)         (2)     $ 25      (1)    $ 24      (4)   $  25
 Cancelled/expired    (2)     $ 28      (1)    $ 28      (2)   $  34
---------------------------------------------------------------------
At Dec.31              19                22               19
---------------------------------------------------------------------
US$ options
At Jan.1                2                 3                6
 Granted                5     $ 24        -       -        -       -
 Exercised(1)         (1)     $ 15      (1)   $  13      (2)   $  12
 Cancelled/expired      -        -        -       -      (1)    $ 25
---------------------------------------------------------------------
At Dec.31               6                 2                3
---------------------------------------------------------------------
(1) The exercise price of the options is the closing share price on
    the day before the grant date.  They vest evenly over four years,
    beginning in the year after granting, and are exercisable over
    7-10 years.  At December 31, 2004, 13 million (2003 - 1 million,
    2002 - 5 million) common shares, in addition to those currently
    outstanding, were available for granting options.
(2) We are also obliged to issue about 0.3 million common shares
    (2003 - 0.5 million common shares) in connection with outstanding
    stock options assumed as part of a business combination in 1999.
    These options have an average exercise price of C$20 (2003 -
    C$20) and an average remaining term of one year.



Stock options outstanding (number of shares in millions)

---------------------------------------------------------------------
                         Outstanding                   Exercisable
---------------------------------------------------------------------
Range of                               Average
 exercise                    Average      life               Average
 prices              Shares    price   (years)      Shares     price
---------------------------------------------------------------------
C$ options
 $  22 - $ 31            17     $ 27         7          10      $ 26
 $  32 - $ 43             2     $ 39         2           2      $ 39
---------------------------------------------------------------------
                         19                  6          12
---------------------------------------------------------------------
US$ options
 $  9  - $ 18             1     $ 12         5           -         -
 $  22 - $ 37             5     $ 24         6           1      $ 30
---------------------------------------------------------------------
                          6                  6           1
---------------------------------------------------------------------

We record compensation cost for stock options based on the excess of the market price of the stock at the grant date of an award over the exercise price. Historically, the exercise price for stock options has equaled the market price of stock at the grant date, resulting in no compensation cost.

Option information

---------------------------------------------------------------------
For the years ended Dec.31
(per share and option
 amounts in dollars)                        2004      2003      2002
---------------------------------------------------------------------
Fair value per option                    $  6.87   $  8.50   $  6.40
Valuation assumptions:
 Expected term (years)                         5         6         6
 Volatility                                  30%       40%       40%
 Dividend yield                             1.0%      1.0%      1.4%
 Risk-free interest rate                    3.8%      4.5%      5.0%
---------------------------------------------------------------------
Pro forma effects
Net income, as reported                 $    248    $  200    $  193
Stock-option expense                        (29)      (24)      (21)
---------------------------------------------------------------------
Pro forma net income                    $    219    $  176    $  172
---------------------------------------------------------------------
Net income per share:
As reported - Basic                     $   0.47   $  0.37   $  0.36
As reported - Diluted                   $   0.46   $  0.37   $  0.36
---------------------------------------------------------------------
Pro forma(1)                            $   0.41   $  0.33   $  0.32
---------------------------------------------------------------------
(1) Basic and diluted.

B Restricted Stock Units (RSUs) and Deferred Share Units (DSUs)

Under our RSU Plan, selected employees are granted RSUs, where each RSU has a value equal to one Barrick common share. RSUs vest and will be settled on the third anniversary of the grant date. Additional RSUs are credited to reflect dividends paid on Barrick common shares. RSUs are recorded at fair value on the grant date, with a corresponding amount recorded as deferred compensation that is amortized on a straight-line basis over the vesting period. Changes in the fair value of the RSUs are recorded, with a corresponding adjustment to deferred compensation. Compensation expense for 2004 was $4 million (2003 - $4 million). At December 31, 2004, the weighted average remaining contractual life of RSUs was 2.0 years.

Under our DSU plan, Directors receive 50% of their basic annual retainer in the form of DSUs, with the option to elect to receive 100% of such retainer in DSUs. Each DSU has the same value as one Barrick common share. DSUs must be retained until the Director leaves the Board, at which time the cash value of the DSUs will be paid out. Additional DSUs are credited to reflect dividends paid on Barrick common shares. DSUs are recorded at fair value on the grant date and are adjusted for changes in fair value. Director's fee expense for DSUs for 2004 was $0.6 million (2003: $0.2 million).

DSU and RSU activity
---------------------------------------------------------------------
                        DSUs    Fair value        RSUs    Fair value
                         (in      per unit         (in      per unit
                  thousands)  (in dollars)  thousands)  (in dollars)
---------------------------------------------------------------------
At Dec.31, 2001            -         $   -         515         $  16
 Canceled                  -                      (30)            20
 Dividends                 -             -           4            17
---------------------------------------------------------------------
At Dec.31, 2002            -         $   -         489         $  15
 Canceled                  -             -       (171)            17
 Granted                   8            21         130            22
 Dividends                 -             -           4            20
---------------------------------------------------------------------
At Dec.31, 2003            8         $  23         452         $  23
 Canceled                  -             -        (58)            23
 Settled                   -             -       (293)            25
 Granted                  23            22         131            24
 Dividends                               -           3            20
---------------------------------------------------------------------
At Dec.31, 2004           31         $  24         235         $  24
---------------------------------------------------------------------

    22. POST-RETIREMENT BENEFITS

    A Defined contribution pension plans

Certain employees take part in defined contribution employee benefit plans. We also have a retirement plan for certain officers of the Company, under which we contribute 15% of the officer's annual salary and bonus. Our share of contributions to these plans, which is expensed in the year it is earned by the employee, was $19 million in 2004, $16 million in 2003 and $13 million in 2002.

B Defined benefit pension plans

We have one qualified defined benefit pension plan that covers certain of our United States employees and provides benefits based on employees' years of service. Our policy is to fund the amounts necessary on an actuarial basis to provide enough assets to meet the benefits payable to plan members under the Employee Retirement Income Security Act of 1974. Independent trustees administer assets of the plans, which are invested mainly in fixed-income and equity securities. On December 31, 2004, the qualified defined benefit plan was amended to freeze benefit accruals for all employees, resulting in a curtailment gain of $2 million.

As well as the qualified plan, we have nonqualified defined benefit pension plans covering certain employees and former directors of the Company. An irrevocable trust ("rabbi trust") was set up to fund these plans. The fair value of assets held in this trust was $31 million in 2004 (2003 - $32 million), and is recorded in our consolidated balance sheet under Investments.

Actuarial gains and losses arise when the actual return on plan assets differs from the expected return on plan assets for a period, or when the expected and actuarial accrued benefit obligations differ at the end of the year. We amortize actuarial gains and losses over the average remaining life expectancy of plan participants, in excess of a 10% corridor.

Pension expense

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Return on plan assets                    $  (11)   $  (11)   $  (17)
Service cost                                   -         -         3
Interest cost                                 12        14        16
Actuarial gains (losses)                       1         -       (1)
Gain (loss) on curtailment/settlement        (2)         1         1
---------------------------------------------------------------------
                                            $  -      $  4      $  2
---------------------------------------------------------------------


C Pension plan information

Fair value of plan assets

---------------------------------------------------------------------
For the years ended Dec.31                       2004           2003
---------------------------------------------------------------------
Balance at Jan.1                               $  166         $  170
Actual return on plan assets                       14             19
Company contributions                               6              8
Benefits paid                                    (16)           (31)
---------------------------------------------------------------------
Balance at Dec.31                               $ 170         $  166
---------------------------------------------------------------------


---------------------------------------------------------------------
At Dec.31                             2004                      2003
---------------------------------------------------------------------
                               Target  Actual  Actual         Actual
---------------------------------------------------------------------
Composition of plan assets:
 Equity securities                50%     46%  $   78         $   66
 Debt securities                  50%     54%      92            100
---------------------------------------------------------------------
                                 100%    100%   $ 170          $ 166
---------------------------------------------------------------------

Projected benefit obligation (PBO)

---------------------------------------------------------------------
For the years ended Dec.31                       2004           2003
---------------------------------------------------------------------
Balance at Jan.1                                $ 221         $  227
 Interest cost                                     12             14
 Actuarial losses                                   3             11
 Benefits paid                                   (16)           (31)
 Curtailments/settlements                         (2)              -
---------------------------------------------------------------------
Balance at Dec.31                               $ 218         $  221
---------------------------------------------------------------------
Funded status(1)                               $ (48)        $  (55)
Unrecognized actuarial losses                      11             11
---------------------------------------------------------------------
Net benefit liability recorded                 $ (37)        $  (44)
---------------------------------------------------------------------
ABO(2),(3)                                      $ 217        $   217
---------------------------------------------------------------------
(1) Represents the fair value of plan assets less projected benefit
    obligations.  Plan assets exclude investments held in a rabbi
    trust that are recorded separately on our balance sheet under
    Investments (fair value $31 million at December 31, 2004). In
    the year ending December 31, 2005, we do not expect to make any
    further contributions.
(2) For 2004 we used a measurement date of December 31, 2004 to
    calculate accumulated benefit obligations.
(3) Represents the ABO for all plans.  The ABO for plans where the
    PBO exceeds the fair value of plan assets was $49 million
    (2003: $217 million).

Investment strategy

We employ a total return investment approach, whereby a mix of equities and fixed-income investments is used to maximize the long-term return of plan assets. Risk is diversified through a blend of equity and fixed-income investments, and also across geography and market capitalization in US large cap stocks, US small cap stocks, and international securities. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews.

Rate of return on plan assets

In estimating the long-term rate of return for plan assets, historical markets are studied and long-term historical returns on equities and fixed-income investments reflect the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are finalized.

Expected future benefit payments

---------------------------------------------------------------------
For the years ending Dec.31
---------------------------------------------------------------------
2005                                                           $  16
2006                                                              15
2007                                                              16
2008                                                              16
2009                                                              16
2010 - 2014                                                    $  89
---------------------------------------------------------------------

Total recorded benefit liability

---------------------------------------------------------------------
At Dec.31                                        2004           2003
---------------------------------------------------------------------
Current                                         $   -          $   3
Non-current                                        37             41
---------------------------------------------------------------------
Benefit plan liability                          $  37          $  44
Additional minimum liability (note 20)             12              7
---------------------------------------------------------------------
                                                $  49          $  51
---------------------------------------------------------------------


D Actuarial assumptions

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Discount rate(1)
 Benefit obligation                        5.50%     6.25%     6.50%
 Pension cost                              6.25%     6.50%     6.75%
Return on plan assets(1)                   7.00%     7.00%     8.50%
Wage increases                             5.00%     5.00%     5.00%
---------------------------------------------------------------------
(1) Effect of a one-percent change: Discount rate: $22 million change
    in ABO and change in pension cost; Return on plan assets:
    $2 million change in pension cost.

E Other post-retirement benefits

We provide post-retirement medical, dental, and life insurance benefits to certain employees. We use the corridor approach in the accounting for post-retirement benefits. Actuarial gains and losses resulting from variances between actual results and economic estimates or actuarial assumptions are deferred and amortized over the average remaining life expectancy of participants when the net gains or losses exceed 10% of the accumulated post-retirement benefit obligation. In 2004, we recorded a benefit expense of $2 million (2003 - $nil, 2002 - $nil).

Other post-retirement benefits expense
---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
Interest cost                               $  2      $  1      $  2
Prior service cost                             -         -       (1)
Curtailments/settlements                       -       (1)       (1)
---------------------------------------------------------------------
                                            $  2      $  -      $  -
---------------------------------------------------------------------

Fair value of plan assets

---------------------------------------------------------------------
For the years ended Dec.31                       2004           2003
---------------------------------------------------------------------
Balance at Jan. 1                                $  -           $  -
Contributions                                       2              2
Benefits paid                                     (2)            (2)
---------------------------------------------------------------------
Balance at Dec. 31                               $  -           $  -
---------------------------------------------------------------------

Accumulated post-retirement benefit obligation
(APBO)
---------------------------------------------------------------------
For the years ended Dec.31                       2004           2003
---------------------------------------------------------------------
Balance at Jan. 1                                $ 24           $ 28
Interest cost                                       2              1
Actuarial losses                                    5            (3)
Benefits paid                                     (2)            (2)
---------------------------------------------------------------------
Balance at Dec. 31                               $ 29           $ 24
---------------------------------------------------------------------
Funded status                                    (29)           (24)
Unrecognized actuarial losses                       1            (4)
---------------------------------------------------------------------
Net benefit liability recorded                 $ (28)         $ (28)
---------------------------------------------------------------------

We have assumed a health care cost trend of 10% in 2004, decreasing ratability to 5% in 2009 and thereafter. The assumed health care cost trend had a minimal effect on the amounts reported. A one percentage point change in the assumed health care cost trend rate at December 31, 2004 would have increased the post-retirement obligation by $3 million or decreased the post-retirement benefit obligation by $2 million and would have had no significant effect on the benefit expense for 2004.

Expected future benefit payments

---------------------------------------------------------------------
For the years ending Dec.31
---------------------------------------------------------------------
2005                                                             $ 2
2006                                                               2
2007                                                               2
2008                                                               2
2009                                                               2
2010 - 2014                                                      $ 9
---------------------------------------------------------------------

23. CONTINGENCIES, LITIGATION AND CLAIMS

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. 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 a loss is probable, and the amount can be reliably estimated, then a loss is recorded. When a contingent loss is not probable but is reasonably possible, or is probable but the amount of loss cannot be reliably estimated, then details of the contingent loss are disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case we disclose the nature of the guarantee. Legal fees incurred in connection with pending legal proceedings are expensed as incurred.

Bre-X Minerals

In 1998, we were added as a defendant in a class action lawsuit initiated against Bre-X Minerals Ltd., and certain 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 March 31, 2003, the Court denied all of the Plaintiffs' motions to certify the case as a class action. The 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 Plaintiffs' submitted a proposed Trial and Case Management Plan, suggesting that the Plan would cure the defects in the Plaintiffs' 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. The amount of potential loss, if any, which we may incur arising out of the Plaintiffs' claims is not determinable.

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 whom we entered into spot deferred gold sales contracts have manipulated the price of gold, in violation of U.S. anti-trust laws and the Louisiana Unfair Trade Practices and Consumer Protection Law. Blanchard and Davies both allege that they have been injured as a seller of gold due to reduced interest in gold as an investment. 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 July 2005. We intend to defend the action vigorously.

McKenzie complaint

On September 21, 2004, a putative class action complaint was filed in the U.S. District Court for the Eastern District of Louisiana against Barrick and J.P. Morgan. The plaintiffs, Dr. Gregg McKenzie and others are alleged purchasers of gold and gold derivatives. The complaint alleges violations of the U.S. anti-trust laws and also of the Commodity Exchange Act, based upon the same conduct as alleged in the Blanchard complaint. The complaint seeks damages and an injunction terminating certain of our trading agreements with J.P. Morgan. On December 17, 2004, a second and substantially identical complaint was filed in the same court against the same defendants. Barrick has not yet been served with this second complaint. Barrick intends to defend both actions 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 US 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. Other parties on behalf of the same proposed class of Barrick shareholders filed several other complaints, making the same basic allegations against the same defendants. In September 2003, 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 complaint. On September 29, 2004, the Court issued an order granting in part and denying in part Barrick's motion to dismiss the action. The Court granted the plaintiffs leave to file a Second Amended Complaint, which was filed on October 20, 2004. The plaintiffs filed a Third Amended Complaint on January 6, 2005. We intend to defend the action vigorously.

Wilcox complaint

On September 8, 2004, two of our U.S. subsidiaries, Homestake Mining Company of California ("Homestake California") and Homestake Mining Company ("Homestake") were served with a First Amended Complaint by persons alleging to be current or former residents of a rural area near the former Grants Uranium Mill. The Complaint, which was filed in the U.S. District Court for the District of New Mexico, identifies 26 plaintiffs. Homestake and Homestake California, along with an unspecified number of unidentified defendants, are named as defendants. The plaintiffs allege that they have suffered a variety of physical, emotional and financial injuries as a result of exposure to radioactive and other hazardous substances. The Complaint seeks an unspecified amount of damages. A motion to dismiss the claim was filed with the Court, but the Court has not yet ruled on the motion. We intend to defend the action vigorously.

24. JOINT VENTURES

Our major interests in joint ventures are a 50% interest in the Kalgoorlie Mine in Australia; a 50% interest in the Round Mountain Mine in the United States; and a 50% interest in the Hemlo Mine in Canada.

SUMMARY FINANCIAL INFORMATION (100%)

Income statement and cash flow information

---------------------------------------------------------------------
For the years ended Dec.31                  2004      2003      2002
---------------------------------------------------------------------
 Revenues                                 $  889    $  775  $    650
 Costs and expenses                          663       638       582
---------------------------------------------------------------------
Net income                                $  226    $  137  $     68
---------------------------------------------------------------------
 Operating activities(1)                  $  291    $  127  $    175
 Investing activities(1)                  $ (46)    $ (60)  $   (54)
 Financing activities(1)                  $    -    $    -  $      -
---------------------------------------------------------------------

(1) Net cash inflow (outflow).

Balance sheet information

---------------------------------------------------------------------
At December 31                                   2004           2003
---------------------------------------------------------------------
Assets
 Inventories                                    $ 102          $  99
 Property, plant and equipment                    506            543
 Other assets                                      93             64
---------------------------------------------------------------------
                                                $ 701          $ 706
---------------------------------------------------------------------
Liabilities
 Current liabilities                            $  87         $   77
 Long-term obligations                            110            104
---------------------------------------------------------------------
                                                $ 197         $  181
---------------------------------------------------------------------


Mine Statistics

                                                 UNITED STATES
                                    ---------------------------------
                                          Open Pit       Underground

Three months ended December 31,       2004     2003     2004     2003
---------------------------------------------------------------------
Tons mined (thousands)              29,946   33,149      373      420
Tons processed (thousands)           2,670    2,445      345      423
Average grade (ounces per ton)       0.161    0.161    0.427    0.390
Recovery rate (percent)              86.6%    80.8%    90.8%    89.3%
---------------------------------------------------------------------
Production (thousands of ounces)       373      325      134      147

Production costs per ounce
  Cash operating costs            $    214  $   235  $   212  $   240
  Royalties and production taxes        14       15       21       21
---------------------------------------------------------------------
  Total cash costs                     228      250      233      261
  Amortization                          62       57       97      118
---------------------------------------------------------------------
Total production costs            $    290  $   307  $   330  $   379
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)                   $     23  $     3  $    10  $     8
---------------------------------------------------------------------

Year ended December 31,               2004     2003     2004     2003
---------------------------------------------------------------------
Tons mined (thousands)             134,212  141,693    1,573    1,631
Tons processed (thousands)          10,779   10,041    1,566    1,622
Average grade (ounces per ton)       0.151    0.189    0.400    0.385
Recovery rate (percent)              85.1%    82.0%    89.7%    88.3%
---------------------------------------------------------------------
Production (thousands of ounces)     1,381    1,559      561      552

Production costs per ounce
  Cash operating costs            $    231  $   215  $   234  $   234
  Royalties and production taxes        16       18       21       19
---------------------------------------------------------------------
  Total cash costs                     247      233      255      253
  Amortization                          61       53      120      122
---------------------------------------------------------------------
Total production costs            $    308  $   286  $   375  $   375
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)                   $     42  $    23  $    30  $    28
---------------------------------------------------------------------


                                                UNITED STATES
                                  -----------------------------------
                                   Goldstrike Total    Round Mountain

Three months ended December 31,       2004     2003     2004     2003
---------------------------------------------------------------------
Tons mined (thousands)              30,319   33,569    4,736    4,735
Tons processed (thousands)           3,015    2,868    8,905    8,832
Average grade (ounces per ton)       0.192    0.195    0.015    0.012
Recovery rate (percent)              87.7%    83.3%      n/a      n/a
---------------------------------------------------------------------
Production (thousands of ounces)       507      472       84       91

Production costs per ounce
  Cash operating costs            $    213  $   236  $   211  $   159
  Royalties and production taxes        17       17       52       31
---------------------------------------------------------------------
  Total cash costs                     230      253      263      190
  Amortization                          72       76       18       59
---------------------------------------------------------------------
Total production costs            $    302  $   329  $   281  $   249
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)                   $     33  $    11  $     1  $     1


Year ended December 31,               2004     2003     2004     2003
---------------------------------------------------------------------
Tons mined (thousands)             135,785  143,324   19,743   24,563
Tons processed (thousands)          12,345   11,663   36,963   31,470
Average grade (ounces per ton)       0.183    0.216    0.015    0.016
Recovery rate (percent)              86.2%    83.6%      n/a      n/a
---------------------------------------------------------------------
Production (thousands of ounces)     1,942    2,111      381      393

Production costs per ounce
  Cash operating costs            $    231  $   220  $   187  $   150
  Royalties and production taxes        18       18       34       23
---------------------------------------------------------------------
  Total cash costs                     249      238      221      173
  Amortization                          79       72       46       54
---------------------------------------------------------------------
Total production costs            $    328  $   310  $   267  $   227
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)                   $     72  $    51  $     5  $     6
---------------------------------------------------------------------


                                                 AUSTRALIA
                                 ------------------------------------
                                           Plutonic            Darlot
Three months ended December 31,       2004     2003     2004     2003
---------------------------------------------------------------------
Tons mined (thousands)               3,567    2,699      217      211
Tons processed (thousands)             644      732      215      224
Average grade (ounces per ton)       0.127    0.132    0.137    0.172
Recovery rate (percent)              90.4%    91.0%    95.0%    96.8%
---------------------------------------------------------------------
Production (thousands of ounces)        74       88       28       37

Production costs per ounce
  Cash operating costs            $    243  $   187  $   247  $   172
  Royalties and production taxes         8        9        8       10
---------------------------------------------------------------------
  Total cash costs                     251      196      255      182
  Amortization                          42       49       63       59
---------------------------------------------------------------------
Total production costs            $    293  $   245  $   318  $   241
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)                   $      4  $     4  $     1  $     2
---------------------------------------------------------------------


Year ended December 31,               2004     2003     2004     2003
---------------------------------------------------------------------
Tons mined (thousands)              13,722   14,180      896      876
Tons processed (thousands)           2,662    3,010      861      879
Average grade (ounces per ton)       0.127    0.123    0.170    0.182
Recovery rate (percent)              90.0%    89.9%    95.8%    96.9%
---------------------------------------------------------------------
Production (thousands of ounces)       304      334      140      155

Production costs per ounce
  Cash operating costs            $    214  $   185  $   203  $   156
  Royalties and production taxes         9        8        7        8
---------------------------------------------------------------------
  Total cash costs                     223      193      210      164
  Amortization                          34       31       53       52
---------------------------------------------------------------------
Total production costs            $    257  $   224  $   263  $   216
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)                   $     15  $    44  $     7  $     7
---------------------------------------------------------------------


                                                 AUSTRALIA
                                 ------------------------------------
                                            Lawlers        Kalgoorlie
Three months ended December 31,       2004     2003     2004     2003
---------------------------------------------------------------------
Tons mined (thousands)                 250      200   11,431   13,062
Tons processed (thousands)             217      210    1,870    1,844
Average grade (ounces per ton)       0.138    0.135    0.069    0.071
Recovery rate (percent)              95.8%    96.9%    85.5%    87.8%
---------------------------------------------------------------------
Production (thousands of ounces)        29       27      110      115

Production costs per ounce
  Cash operating costs            $    240  $   259  $   232  $   205
  Royalties and production taxes         9        9        9       10
---------------------------------------------------------------------
  Total cash costs                     249      268      241      215
  Amortization                          68       58       40       53
---------------------------------------------------------------------
Total production costs            $    317  $   326  $   281  $   268
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)                   $      3  $     1  $     3  $     2
---------------------------------------------------------------------


Year ended December 31,               2004     2003     2004     2003
---------------------------------------------------------------------
Tons mined (thousands)               3,365    1,152   45,459   48,677
Tons processed (thousands)             866      806    7,142    7,171
Average grade (ounces per ton)       0.133    0.128    0.072    0.071
Recovery rate (percent)              96.1%    95.8%    86.6%    85.8%
---------------------------------------------------------------------
Production (thousands of ounces)       110       99      444      436

Production costs per ounce
  Cash operating costs            $    238  $   241  $   223  $   201
  Royalties and production taxes         8        8        8        8
---------------------------------------------------------------------
  Total cash costs                     246      249      231      209
  Amortization                          53       42       44       48
---------------------------------------------------------------------
Total production costs            $    299  $   291  $   275  $   257
---------------------------------------------------------------------
Capital expenditures
 (US$ millions)                   $      5  $    14  $    10  $    14
---------------------------------------------------------------------


                                                 CANADA
                                  -----------------------------------
                                                                Holt-
                                     Hemlo    Eskay Creek   McDermott
Three months ended December 31,   2004   2003  2004  2003  2004  2003
--------------------------------------------- -----------  ----------
Tons mined (thousands)           1,182  1,039    68    63     -   142
Tons processed (thousands)         507    514    70    65     -   150
Average grade (ounces per ton)   0.140  0.133 1.138 1.481     - 0.166
Recovery rate (percent)          93.5%  95.1% 93.3% 94.1%     - 93.5%
--------------------------------------------- -----------  ----------
Production (thousands of
 ounces)                            66     65    73    83     -    23

Production costs per ounce
 Cash operating costs             $222   $219    $1   $15    $-  $210
 Royalties and production taxes      9      8     6     5     -     -
--------------------------------------------- -----------  ----------
 Total cash costs                  231    227     7    20     -   210
 Amortization                       56     37   190   132     -   144
--------------------------------------------- -----------  ----------
Total production costs            $287   $264  $197  $152    $-  $354
--------------------------------------------- -----------  ----------
Capital expenditures (US$
 millions)                          $3     $3    $2    $1    $-    $-
--------------------------------------------- -----------  ----------


Year ended December 31,           2004   2003  2004  2003  2004  2003
--------------------------------------------- -----------  ----------
Tons mined (thousands)           4,715  4,178   269   272   380   557
Tons processed (thousands)       2,019  1,971   263   275   394   559
Average grade (ounces per ton)   0.130  0.143 1.178 1.432 0.149 0.170
Recovery rate (percent)          94.0%  95.0% 93.1% 93.7% 93.1% 94.3%
--------------------------------------------- -----------  ----------
Production (thousands of
 ounces)                           247    268   290   352    55    90

Production costs per ounce
 Cash operating costs             $231   $218   $26   $48  $197  $239
 Royalties and production taxes      9      8     5     4     -     -
--------------------------------------------- -----------  ----------
 Total cash costs                  240    226    31    52   197   239
 Amortization                       50     40   176   132   114   131
--------------------------------------------- -----------  ----------
Total production costs            $290   $266  $207  $184  $311  $370
--------------------------------------------- -----------  ----------
Capital expenditures (US$
 millions)                          $8    $10    $7    $5    $-    $-
--------------------------------------------- -----------  ----------



                                              PERU          TANZANIA
                                           -----------   ------------
                                             Pierina       Bulyanhulu
Three months ended December 31,            2004   2003    2004   2003
------------------------------------------------------   ------------
Tons mined (thousands)                    9,657 10,106     258    257
Tons processed (thousands)                4,248      -     274    261
Average grade (ounces per ton)            0.025  0.071   0.366  0.341
Recovery rate (percent)                       -      -   88.3%  88.5%
------------------------------------------------------   ------------
Production (thousands of ounces)             94    206      89     79

Production costs per ounce
 Cash operating costs                      $146    $89    $307   $301
 Royalties and production taxes               -      -      15     15
------------------------------------------------------   ------------
 Total cash costs                           146     89     322    316
 Amortization                               165    181      70    125
------------------------------------------------------   ------------
Total production costs                     $311   $270    $392   $441
------------------------------------------------------   ------------
Capital expenditures (US$ millions)          $6     $8     $20     $9
------------------------------------------------------   ------------


Year ended December 31,                    2004   2003    2004   2003
------------------------------------------------------   ------------
Tons mined (thousands)                   40,225 39,501   1,118    945
Tons processed (thousands)               16,746 15,839   1,123    980
Average grade (ounces per ton)            0.034  0.074   0.352  0.363
Recovery rate (percent)                       -      -   88.4%  88.1%
------------------------------------------------------   ------------
Production (thousands of ounces)            646    912     350    314

Production costs per ounce
 Cash operating costs                      $106    $83    $270   $235
 Royalties and production taxes               -      -      13     11
------------------------------------------------------   ------------
 Total cash costs                           106     83     283    246
 Amortization                               165    182      99    123
------------------------------------------------------   ------------
Total production costs                     $271   $265    $382   $369
------------------------------------------------------   ------------
Capital expenditures (US$ millions)          $8    $17     $46    $36
------------------------------------------------------   ------------



SUMMARY GOLD MINERAL RESERVES AND MINERAL RESOURCES

For the year ended December 31,                                 2004
---------------------------------------------------------------------
                                            Tons     Grade    Ounces
Based on attributable ounces             (000's)  (oz/ton)   (000's)
---------------------------------------------------------------------
NORTH AMERICA
Goldstrike Open Pit  (proven and
                       probable)         123,334     0.131    16,188
                     (mineral resource)   22,318     0.050     1,107
---------------------------------------------------------------------
Goldstrike
 Underground         (proven and
                       probable)           7,575     0.392     2,970
                     (mineral resource)    6,268     0.379     2,373
---------------------------------------------------------------------
 Goldstrike Property
  Total              (proven and
                       probable)         130,909     0.146    19,158
                     (mineral resource)   28,586     0.122     3,480
---------------------------------------------------------------------
 Round Mountain (50%)
                     (proven and
                       probable)          86,983     0.018     1,538
                     (mineral resource)   45,364     0.015       666
---------------------------------------------------------------------
 East Archimedes     (proven and
                       probable)          17,093     0.059     1,011
                     (mineral resource)    3,049     0.061       187
---------------------------------------------------------------------
 Hemlo (50%)         (proven and
                       probable)          13,946     0.090     1,260
                     (mineral resource)    5,251     0.113       594
---------------------------------------------------------------------
 Eskay Creek         (proven and
                       probable)             485     1.058       513
                     (mineral resource)      476     0.538       256
---------------------------------------------------------------------
 Marigold (33%)      (proven and
                       probable)          32,244     0.023       744
                     (mineral resource)   17,768     0.022       387
---------------------------------------------------------------------
 Holt-McDermott      (proven and
                       probable)               -         -         -
                     (mineral resource)        -         -         -
---------------------------------------------------------------------
SOUTH AMERICA
 Pascua-Lama         (proven and
                       probable)         360,759     0.049    17,615
                     (mineral resource)   43,468     0.064     2,797
---------------------------------------------------------------------
 Veladero            (proven and
                       probable)         396,517     0.032    12,849
                     (mineral resource)   21,804     0.021       449
---------------------------------------------------------------------
 Lagunas Norte       (proven and
                       probable)         229,449     0.040     9,123
                     (mineral resource)   16,153     0.024       395
---------------------------------------------------------------------
 Pierina             (proven and
                       probable)          65,026     0.039     2,508
                     (mineral resource)   15,363     0.022       341
---------------------------------------------------------------------
AUSTRALIA/AFRICA
 Kalgoorlie (50%)    (proven and
                       probable)          87,894     0.059     5,181
                     (mineral resource)   12,798     0.068       866
---------------------------------------------------------------------
 Plutonic            (proven and
                       probable)          18,291     0.137     2,512
                     (mineral resource)   13,203     0.158     2,085
---------------------------------------------------------------------
 Cowal               (proven and
                       probable)          63,600     0.039     2,495
                     (mineral resource)   47,534     0.034     1,596
---------------------------------------------------------------------
 Lawlers             (proven and
                       probable)            3,222    0.126       405
                     (mineral resource)     4,824    0.159       765
---------------------------------------------------------------------
 Darlot              (proven and
                       probable)            7,142    0.147     1,048
                     (mineral resource)     3,984    0.119       473
---------------------------------------------------------------------
 Bulyanhulu          (proven and
                       probable)           23,913    0.443    10,596
                     (mineral resource)     4,253    0.546     2,321
---------------------------------------------------------------------
 Tulawaka (70%)      (proven and
                       probable)            1,077    0.355       382
                     (mineral resource)       584    0.068        40
---------------------------------------------------------------------
 Buzwagi             (proven and
                       probable)                -        -         -
                     (mineral resource)    27,127    0.074     2,016
---------------------------------------------------------------------
OTHER                (proven and
                       probable)              287    0.411       118
                     (mineral resource)     4,702    0.158       744
---------------------------------------------------------------------

TOTAL                (proven and
                       probable)        1,538,837    0.058    89,056
                     (mineral resource)   316,291    0.065    20,458
---------------------------------------------------------------------


For the year ended December 31,                                 2003
---------------------------------------------------------------------
                                            Tons     Grade    Ounces
Based on attributable ounces             (000's)  (oz/ton)   (000's)
---------------------------------------------------------------------
NORTH AMERICA
Goldstrike Open Pit  (proven and
                       probable)         109,742     0.143    15,685
                     (mineral resource)   37,403     0.061     2,264
---------------------------------------------------------------------
Goldstrike
 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
---------------------------------------------------------------------
 East Archimedes     (proven and
                       probable)               -         -         -
                     (mineral resource)   15,632     0.050        786
---------------------------------------------------------------------
 Hemlo (50%)         (proven and
                      probable)           17,557     0.099     1,744
                     (mineral resource)    3,017     0.090       271
---------------------------------------------------------------------
 Eskay Creek         (proven and probable)   927     1.015       941
                     (mineral resource)      422     0.287       121
---------------------------------------------------------------------
 Marigold (33%)      (proven and
                       probable)          31,089     0.024       737
                     (mineral resource)   13,334     0.020       268
---------------------------------------------------------------------
 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
---------------------------------------------------------------------
 Lagunas Norte       (proven and
                       probable)         159,250     0.045     7,155
                     (mineral resource)   25,751     0.067     1,735
---------------------------------------------------------------------
 Pierina             (proven and
                       probable)          61,393     0.045     2,768
                     (mineral resource)   25,421     0.016       419
---------------------------------------------------------------------
AUSTRALIA/AFRICA
 Kalgoorlie (50%)    (proven and
                       probable)          97,047     0.061     5,894
                     (mineral resource)   44,584     0.058     2,580
---------------------------------------------------------------------
 Plutonic            (proven and
                       probable)          20,635     0.128     2,646
                     (mineral resource)   13,395     0.147     1,967
---------------------------------------------------------------------
 Cowal               (proven and
                       probable)          63,600     0.039     2,495
                     (mineral resource)   47,534     0.034     1,596
---------------------------------------------------------------------
 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
---------------------------------------------------------------------
 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
---------------------------------------------------------------------
 Buzwagi             (proven and probable)     -         -         -
                     (mineral resource)        -         -         -
---------------------------------------------------------------------
OTHER                (proven and probable)     -         -         -
                     (mineral resource)    4,772     0.170       812
---------------------------------------------------------------------

TOTAL                (proven and
                       probable)       1,314,043     0.065    85,952
                     (mineral resource)  476,839     0.052    24,689
---------------------------------------------------------------------



GOLD MINERAL RESERVES(1)

As at December 31, 2004                                        PROVEN
---------------------------------------------------------------------
                                             Tons     Grade    Ounces
Based on attributable ounces              (000's)  (oz/ton)   (000's)
---------------------------------------------------------------------
NORTH AMERICA
  Goldstrike Open Pit                      66,943     0.121     8,077
  Goldstrike Underground                    2,871     0.494     1,419
 Goldstrike Property Total                 69,814     0.136     9,496
 Round Mountain (50%)                      50,123     0.017       831
 East Archimedes                            7,363     0.061       446
 Hemlo (50%)                                8,611     0.103       885
 Eskay Creek                                  233     1.124       262
 Marigold (33%)                            17,777     0.024       421
---------------------------------------------------------------------
SOUTH AMERICA
 Pascua-Lama                               35,124     0.058     2,035
 Veladero                                  21,306     0.038       799
 Alto Chicama                               4,644     0.044       206
 Pierina                                   26,234     0.055     1,446
---------------------------------------------------------------------
AUSTRALIA/AFRICA
 Kalgoorlie (50%)                          48,079     0.055     2,621
 Plutonic                                     358     0.025         9
 Cowal                                      5,191     0.046       238
 Lawlers                                    1,082     0.124       134
 Darlot                                     2,798     0.120       337
 Bulyanhulu                                 1,915     0.401       767
 Tulawaka (70%)                                22     0.273         6
---------------------------------------------------------------------

OTHER                                           -         -         -
---------------------------------------------------------------------

TOTAL                                     300,674     0.070    20,939
---------------------------------------------------------------------



As at December 31, 2004                                      PROBABLE

                                             Tons     Grade    Ounces
Based on attributable ounces              (000's)  (oz/ton)   (000's)
---------------------------------------------------------------------
NORTH AMERICA
  Goldstrike Open Pit                      56,391     0.144     8,111
  Goldstrike Underground                    4,704     0.330     1,551
 Goldstrike Property Total                 61,095     0.158     9,662
 Round Mountain (50%)                      36,860     0.019       707
 East Archimedes                            9,730     0.058       565
 Hemlo (50%)                                5,335     0.070       375
 Eskay Creek                                  252     0.996       251
 Marigold (33%)                            14,467     0.022       323
---------------------------------------------------------------------
SOUTH AMERICA
 Pascua-Lama                              325,635     0.048    15,580
 Veladero                                 375,211     0.032    12,050
 Lagunas Norte                            224,805     0.040     8,917
 Pierina                                   38,792     0.027     1,062
---------------------------------------------------------------------
AUSTRALIA/AFRICA
 Kalgoorlie (50%)                          39,815     0.064     2,560
 Plutonic                                  17,933     0.140     2,503
 Cowal                                     58,409     0.039     2,257
 Lawlers                                    2,140     0.127       271
 Darlot                                     4,344     0.164       711
 Bulyanhulu                                21,998     0.447     9,829
 Tulawaka (70%)                             1,055     0.356       376
---------------------------------------------------------------------

OTHER                                         287     0.411       118
---------------------------------------------------------------------

TOTAL                                   1,238,163     0.055    68,117
---------------------------------------------------------------------


As at December 31, 2004                                         TOTAL
---------------------------------------------------------------------
                                             Tons     Grade    Ounces
Based on attributable ounces              (000's)  (oz/ton)   (000's)
---------------------------------------------------------------------
NORTH AMERICA
  Goldstrike Open Pit                     123,334     0.131    16,188
  Goldstrike Underground                    7,575     0.392     2,970
 Goldstrike Property Total                130,909     0.146    19,158
 Round Mountain (50%)                      86,983     0.018     1,538
 East Archimedes                           17,093     0.059     1,011
 Hemlo (50%)                               13,946     0.090     1,260
 Eskay Creek                                  485     1.058       513
 Marigold (33%)                            32,244     0.023       744
---------------------------------------------------------------------
SOUTH AMERICA
 Pascua-Lama                              360,759     0.049    17,615
 Veladero                                 396,517     0.032    12,849
 Lagunas Norte                            229,449     0.040     9,123
 Pierina                                   65,026     0.039     2,508
---------------------------------------------------------------------
AUSTRALIA/AFRICA
 Kalgoorlie (50%)                          87,894     0.059     5,181
 Plutonic                                  18,291     0.137     2,512
 Cowal                                     63,600     0.039     2,495
 Lawlers                                    3,222     0.126       405
 Darlot                                     7,142     0.147     1,048
 Bulyanhulu                                23,913     0.443    10,596
 Tulawaka (70%)                             1,077     0.355       382
---------------------------------------------------------------------

OTHER                                         287     0.411       118
---------------------------------------------------------------------

TOTAL                                   1,538,837     0.058    89,056
---------------------------------------------------------------------

(1) Mineral reserves ("reserves") have been calculated as at December
    31, 2004 in accordance with National Instrument 43-101, as
    required by Canadian securities regulatory authorities and, for
    the United States, in accordance with Industry Guide 7 (under the
    Securities Exchange Act of 1934) as interpreted by the Staff
    of the U.S. Securities and Exchange Commission. Calculations
    have been prepared by employees of Barrick under the
    supervision of Rene L. Marion, P.Eng., Vice-President,
    Technical Services of Barrick. Except as noted below, reserves
    have been calculated using an assumed gold price of US$375 per
    ounce, a silver price of US$5.50 per ounce and an exchange rate
    of $1.45 Can$/US$. Reserves at the Australian properties assumed
    a gold price of Aus$560 per ounce. Reserves at the Hemlo property
    assumed a gold price of US$350 per ounce and an exchange rate
    of $1.35 Can$/US$. Reserves at Round Mountain are based on pit
    designs consistent with a gold price of US$375 per ounce.
    Reserves at the Marigold property assumed a gold price of US$350
    per ounce. Reserve calculations incorporate current and/or
    expected mine plans and cost levels at each property. Cost
    estimates at each Australian property assumed an exchange rate of
    $0.70 US$/Aus$. 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 methods used in calculating Barrick's reserves and
    resources, see Barrick's most recent Annual Information Form/Form
    40-F on file with Canadian provincial securities regulatory
    authorities and the U.S. Securities and Exchange Commission.



GOLD MINERAL RESOURCES(1)

As at
 December 31, 2003      MEASURED (M)            INDICATED (I) (M)+(I)
---------------------------------------------------------------------
Based on
 attributable   Tons   Grade  Ounces    Tons    Grade  Ounces  Ounces
 ounces      (000's)(oz/ton) (000's) (000's) (oz/ton) (000's) (000's)
---------------------------------------------------------------------
NORTH AMERICA
  Goldstrike
   Open Pit   12,119   0.054     651  10,199    0.045     456   1,107
  Goldstrike
   Underground 2,114   0.361     764   4,154    0.387   1,609   2,373
 Goldstrike
  Property
  Total       14,233   0.099   1,415  14,353    0.144   2,065   3,480
 Round
  Mountain
  (50%)       21,734   0.013     272  23,630    0.017     394     666
 East
  Archimedes     979   0.063      62   2,070    0.060     125     187
 Hemlo (50%)   1,800   0.091     163   3,451    0.125     431     594
 Eskay Creek     156   0.558      87     320    0.528     169     256
 Marigold
  (33%)        7,500   0.021     154  10,268    0.023     233     387
---------------------------------------------------------------------
SOUTH AMERICA
 Pascua-Lama   5,724   0.058     333  37,744    0.065   2,464   2,797
 Veladero      1,092   0.020      22  20,712    0.021     427     449
 Lagunas Norte   277   0.025       7  15,876    0.024     388     395
 Pierina       4,305   0.030     128  11,058    0.019     213     341
---------------------------------------------------------------------
AUSTRALIA/AFRICA
 Kalgoorlie
  (50%)        3,907   0.066     258   8,891    0.068     608     866
 Plutonic        349   0.221      77  12,854    0.156   2,008   2,085
 Cowal         2,594   0.038      98  44,940    0.033   1,498   1,596
 Lawlers         244   0.098      24   4,580    0.162     741     765
 Darlot        1,089   0.148     161   2,895    0.108     312     473
 Bulyanhulu        -       -       -   4,253    0.546   2,321   2,321
 Tulawaka (70%)    -       -       -     584    0.068      40      40
 Buzwagi          69   0.072       5  27,058    0.074   2,011   2,016
---------------------------------------------------------------------

OTHER                                  4,702    0.158     744     744
---------------------------------------------------------------------

TOTAL         66,052   0.049   3,266 250,239    0.069  17,192  20,458
---------------------------------------------------------------------


As at December 31, 2003                                     INFERRED
---------------------------------------------------------------------
                                            Tons     Grade    Ounces
Based on attributable ounces             (000's)  (oz/ton)   (000's)
---------------------------------------------------------------------
NORTH AMERICA
  Goldstrike Open Pit                        722     0.073        53
  Goldstrike Underground                   6,899     0.346     2,388
 Goldstrike Property Total                 7,621     0.320     2,441
 Round Mountain (50%)                     43,171     0.013       562
 East Archimedes                               -         -         -
 Hemlo (50%)                               4,233     0.144       608
 Eskay Creek                                 280     0.496       139
 Marigold (33%)                           61,477     0.014       859
---------------------------------------------------------------------
SOUTH AMERICA
 Pascua-Lama                              36,728     0.044     1,613
 Veladero                                 63,110     0.017     1,045
 Lagunas Norte                             9,718     0.022       215
 Pierina                                     101     0.010         1
---------------------------------------------------------------------
AUSTRALIA/AFRICA
 Kalgoorlie (50%)                            588     0.056        33
 Plutonic                                 10,349     0.192     1,988
 Cowal                                    31,053     0.033     1,011
 Lawlers                                   1,114     0.139       155
 Darlot                                      127     0.213        27
 Bulyanhulu                                4,303     0.587     2,526
 Tulawaka (70%)                              161     0.075        12
 Buzwagi                                     804     0.056        45
---------------------------------------------------------------------

OTHER                                      4,802     0.139       669
---------------------------------------------------------------------

TOTAL                                    279,740     0.050    13,949
---------------------------------------------------------------------
(1) Resources which are not reserves have demonstrated economic
    viability.


CONTAINED SILVER WITHIN REPORTED GOLD RESERVES(1)

Assumed metal prices;   Gold: US$375/oz Silver:US$5.50/oz
                        Copper: US$0.90/lb
---------------------------------------------------------------------

For the year ended Dec. 31, 2004                               PROVEN
---------------------------------------------------------------------
                                             Tons     Grade    Ounces
                                           (000s)  (oz/ton)    (000s)
---------------------------------------------------------------------
AFRICA
  Bulyanhulu                                1,915      0.30       566
---------------------------------------------------------------------
NORTH AMERICA
  Eskay Creek                                 189     67.93    12,838
---------------------------------------------------------------------
SOUTH AMERICA
  Lagunas Norte                             4,644      0.11       514
  Pascua-Lama                              35,124      1.93    67,693
  Pierina                                  26,234      0.24     6,223
  Veladero                                 21,306      0.54    11,538
---------------------------------------------------------------------

TOTAL                                      89,412      1.11    99,372
---------------------------------------------------------------------



For the year ended Dec. 31, 2004                             PROBABLE
---------------------------------------------------------------------
                                             Tons     Grade    Ounces
                                           (000s)  (oz/ton)    (000s)
---------------------------------------------------------------------
AFRICA
  Bulyanhulu                               21,998      0.35     7,668
---------------------------------------------------------------------
NORTH AMERICA
  Eskay Creek                                 295     34.72    10,241
---------------------------------------------------------------------
SOUTH AMERICA
  Lagunas Norte                           224,805      0.10    22,704
  Pascua-Lama                             325,635      1.77   575,492
  Pierina                                  38,792      0.16     6,335
  Veladero                                375,211      0.50   188,785
---------------------------------------------------------------------

TOTAL                                     986,736      0.82   811,225
---------------------------------------------------------------------


For the year ended Dec. 31, 2004                                TOTAL
---------------------------------------------------------------------
                                                              Process
                                   Tons     Grade    Ounces     reco-
                                 (000s)  (oz/ton)    (000s)    very %
---------------------------------------------------------------------
AFRICA
  Bulyanhulu                     23,913      0.34     8,234     65.0%
---------------------------------------------------------------------
NORTH AMERICA
  Eskay Creek                       484     47.68    23,079     91.4%
---------------------------------------------------------------------
SOUTH AMERICA
  Lagunas Norte                 229,449      0.10    23,218     22.3%
  Pascua-Lama                   360,759      1.78   643,185     77.8%
  Pierina                        65,026      0.19    12,558     32.7%
  Veladero                      396,517      0.51   200,323      6.8%
---------------------------------------------------------------------

TOTAL                          1,076,148      0.85  910,597     60.4%
---------------------------------------------------------------------
(1) Silver is accounted for as a by-product credit against reported
 or projected gold production costs.



CONTAINED SILVER WITHIN REPORTED GOLD RESOURCES

For the year ended Dec. 31, 2003                         MEASURED (M)
---------------------------------------------------------------------
                                             Tons     Grade    Ounces
                                           (000s)  (oz/ton)    (000s)
---------------------------------------------------------------------
AFRICA
  Bulyanhulu                                    -         -         -
---------------------------------------------------------------------
NORTH AMERICA
 Eskay Creek                                  156    22.346     3,486
---------------------------------------------------------------------
SOUTH AMERICA
  Lagunas Norte                               277     0.155        43
  Pascua-Lama                               5,724     1.548     8,862
  Pierina                                   4,305     0.206       886
  Veladero                                  1,092     0.392       428
---------------------------------------------------------------------

TOTAL                                      11,554     1.186    13,705
---------------------------------------------------------------------



For the year ended Dec. 31, 2003                        INDICATED (I)
---------------------------------------------------------------------
                                             Tons     Grade    Ounces
                                           (000s)  (oz/ton)    (000s)
---------------------------------------------------------------------
AFRICA
  Bulyanhulu                                4,253     0.342     1,454
---------------------------------------------------------------------
NORTH AMERICA
  Eskay Creek                                 320    17.641     5,645
---------------------------------------------------------------------
SOUTH AMERICA
  Lagunas Norte                            15,876     0.124     1,971
  Pascua-Lama                              37,744     1.498    56,543
  Pierina                                  11,058     0.019       213
  Veladero                                 20,712     0.364     7,531
---------------------------------------------------------------------

TOTAL                                      89,963     0.815    73,357
---------------------------------------------------------------------


For the year ended Dec. 31, 2003                      TOTAL (M) + (I)
---------------------------------------------------------------------
                                             Tons     Grade    Ounces
                                           (000s)  (oz/ton)    (000s)
---------------------------------------------------------------------
AFRICA
  Bulyanhulu                                4,253     0.342     1,454
---------------------------------------------------------------------
NORTH AMERICA
  Eskay Creek                                 476    19.183     9,131
---------------------------------------------------------------------
SOUTH AMERICA
  Lagunas Norte                            16,153     0.125     2,014
  Pascua-Lama                              43,468     1.505    65,405
  Pierina                                  15,363     0.072     1,099
  Veladero                                 21,804     0.365     7,959
---------------------------------------------------------------------

TOTAL                                     101,517     0.858    87,062
---------------------------------------------------------------------



CORPORATE OFFICE                    TRANSFER AGENTS AND REGISTRARS
Barrick Gold Corporation            CIBC Mellon Trust Company
BCE Place, Canada Trust Tower,      P.O. Box 7010, Adelaide Street
Suite 3700                          Postal Station
161 Bay Street, P.O. Box 212        Toronto, Ontario  M5C 2W9
Toronto, Canada  M5J 2S1            Tel: (416) 643-5500
Tel: (416) 861-9911                 Toll-free throughout
Fax: (416) 861-0727                 North America: 1-800-387-0825
Toll-free within Canada             Fax: (416) 643-5501
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

SHARES LISTED                       Mellon Investor Services L.L.C.
ABX - The Toronto Stock Exchange    85 Challenger Road,
      The New York Stock Exchange   Overpeck Center
      The Swiss Stock Exchange      Ridgefield Park,
      La Bourse de Paris            New Jersey 07660
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                                    Toll-free within
                                    the United States:
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                                    Web site:
                                    www.mellon-investor.com

                                    INVESTOR CONTACT
                                    Darren Blasutti
                                    Vice President,
                                    Investor Relations
                                    Tel:  (416) 307-7341
                                    Email: dblasutti@barrick.com

Barrick Gold Corporation (NYSE:ABX) (TSX:ABX) (Swiss:ABX) (PARIS:ABX) (LSE:BGD)

SOURCE: Barrick Gold Corporation

Barrick Gold Corporation
Vincent Borg
Vice President, Corporate Communications
(416) 307-7477
Fax: (416) 861-1509
media@barrick.com

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

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

World Gold Council MemberMember of ICMM

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