news-details

Barrick Gold: Net Income Rises 29% to $514 Million ($0.59 per Share); Expanded Margins Increase Profitability in Q1

May 06, 2008

TORONTO, ONTARIO -- (MARKET WIRE) -- 05/06/08 -- Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) -

FIRST QUARTER REPORT - MAY 6, 2008

Based on US GAAP and expressed in US dollars

For a full explanation of results, the Financial Statements and Management Discussion & Analysis, full-year guidance at significant mines, and mine statistics, please see the Company's website, www.barrick.com.

Highlights

- The Company reported first quarter net income of $514 million ($0.59 per share) and operating cash flow of $728 million ($0.83 per share) compared to a net loss of $159 million ($0.18 per share) and operating cash flow of $163 million ($0.19 per share) in the prior year period. Reported net income rose 29% compared to prior year adjusted net income of $398 million ($0.46 per share)(1) and included $29 million of post-tax special items that reduced income by $0.03 per share. Adjusting for these special items, earnings of $0.62 per share are a Company record. The realized gold price of $925 per ounce matched the average spot price for the quarter.

- First quarter gold production was 1.74 million ounces at total cash costs of $393 per ounce(2), and copper production was 87 million pounds at total cash costs of $0.94 per pound(2). The Company maintains full year production guidance of 7.6 - 8.1 million ounces of gold at total cash costs of $390 - $415 per ounce and 380 - 400 million pounds of copper at total cash costs of $1.15 - $1.25 per pound.

- Significant progress continued to be made on Barrick's extensive project pipeline, including: advanced construction of Buzwagi, which is on schedule and within budget for start-up in mid-2009, and the submission of a feasibility study and project notice to the Government of the Dominican Republic in February in order to proceed with the Pueblo Viejo project. At Cortez Hills in Nevada, detailed engineering is essentially complete and the project remains on schedule and within the $480 - $500 million pre-production capital budget. A final feasibility study has been completed on the Sedibelo platinum project in South Africa, entitling the Company to a 10% interest and the right to earn an additional 40% on a decision to mine.

- During the quarter, the Company consolidated 100% ownership in the Cortez property with the purchase of the remaining 40% interest. The Cortez operation is expected to become a million-ounce, low cost producer once Cortez Hills is commissioned, and is a key, long life asset in Barrick's portfolio.

Barrick Gold Corporation reported Q1 production of 1.74 million ounces of gold at total cash costs of $393 per ounce compared to 2.03 million ounces produced at total cash costs of $309 per ounce for the prior year period.

First quarter net income of $514 million ($0.59 per share) and operating cash flow of $728 million ($0.83 per share) compare to a net loss of $159 million ($0.18 per share) and operating cash flow of $163 million ($0.19 per share) in the prior year period. Net income rose 29% compared to prior year adjusted net income of $398 million ($0.46 per share) on higher cash margins for both gold and copper. Operating cash flow of $728 million ($0.83 per share) compares to adjusted cash flow of $727 million ($0.84 per share) reported for the prior year period. Current period cash flow was adversely impacted by a build up of inventory during the quarter. EBITDA of $984 million ($1.14 per share) was 30% higher than prior year adjusted EBITDA of $757 million ($0.87 per share).(1)

Reported net income included $29 million of post-tax special items that reduced earnings by $0.03 per share.

"Our 25th anniversary this year comes at an exciting time to be in the mining business," said Peter Munk, Chairman and Acting CEO of Barrick. "We have positioned ourselves to benefit from today's strong metal prices and our efforts are now being realized in expanding margins and strong earnings and cash flow."

PRODUCTION AND COSTS

In Q1 2008, Barrick produced 1.74 million ounces of gold at total cash costs of $393 per ounce and a realized gold price of $925 per ounce. Q1 was a lower production quarter as lower grades and throughput were experienced at some larger operations due to a combination of planned mine sequencing and operational disruptions. Improved performance is anticipated at a number of mines that experienced disruptions and as higher grades are accessed at Goldstrike starting in the second quarter.

The Company maintains its full year production guidance of 7.6 - 8.1 million ounces of gold at total cash costs of $390 - $415 per ounce. Assuming continuing cost pressures associated with higher than assumed gold and energy prices, cash costs for gold are expected to be in line with the higher end of the guidance range.

The South American business unit produced 0.54 million ounces of gold in Q1 at total cash costs of $193 per ounce. The Lagunas Norte mine continues to deliver excellent results, producing 0.23 million ounces of gold at cash costs of $116 per ounce. Veladero production of 0.19 million ounces at cash costs of $293 per ounce benefited from access to higher grade areas of the Filo Federico and Amable pits following extensive waste stripping in 2007.

The North American business unit contributed 0.61 million ounces in Q1 at total cash costs of $497 per ounce, including 0.30 million ounces from the Goldstrike complex at cash costs of $521 per ounce. Planned waste stripping and processing of lower grade stockpiled ore continues at the Betze-Post pit, where grades were 36% below prior year levels. Goldstrike was also impacted by a SAG mill gear failure and a fire associated with the north roaster bucket elevator, which significantly reduced capacity in February. Production and costs at Goldstrike are expected to improve starting in the second quarter of the year as equipment issues have been resolved and the roaster and autoclave are running at full capacity, and as higher grade ore from the pit becomes accessible in the latter part of the quarter. The Cortez mine produced 83,000 ounces (reflects one month of 100% ownership) at total cash costs of $503 per ounce. Once Cortez Hills enters production, annual production at Cortez is expected to increase to about 1.0 million ounces annually in the first full five years at estimated cash costs of $280 - $290 per ounce. A 15-month construction period is anticipated to begin when the Record of Decision, which is expected in the second half of 2008, becomes effective.

The Australia Pacific business unit produced 0.44 million ounces in Q1 at total cash costs of $438 per ounce. The Porgera operation, the region's biggest contributor to production, had a strong quarter, producing 0.14 million ounces. Results benefited from increased ownership as well as higher grades and throughput. Access to higher grade ore at Cowal was restricted due to a slip on the east wall, which is expected to limit production to lower grade stockpiles until the fourth quarter. Lower than expected grades were also experienced at the Plutonic, Kalgoorlie and Kanowna mines.

Production from the African business unit was 0.14 million ounces in Q1 at total cash costs of $508 per ounce. The Bulyanhulu mine continued to experience effects of the illegal strike as reduced staffing levels impacted mine development and delayed access to higher grade ore, resulting in lower grades and reduced mill throughput. The mine has nearly completed the re-staffing process and expects to return to normal operations starting in the second quarter. The North Mara mine also processed lower grade ore due to the loss of an excavator in January. A new excavator has been commissioned and was fully operational at the end of April.

Copper production of 87 million pounds was lower than in the prior year period, primarily due to temporary lower leach recovery rates at Zaldivar and grade sequencing at Osborne. Copper sales were 98 million pounds at total cash costs of $0.94 per pound and a realized price of $3.54 per pound. The Company maintains its 2008 operating guidance for copper of 380 - 400 million pounds at total cash costs of $1.15 - $1.25 per pound.

PROJECTS UPDATE

The Buzwagi project in Tanzania is on schedule and within its $400 million pre-production capital budget, with about 75% of funds committed or spent. All major foundations, including the crusher and mill foundations, are well advanced and the leach tanks have been installed. All equipment has been purchased and all significant construction contracts have been awarded. First gold is expected to be poured in mid-2009. Buzwagi is expected to produce 250,000 - 260,000 ounces per year at estimated total cash costs of $270 - $280 per ounce in its first full five years of operation.

A feasibility study and project notice were delivered to the government of the Dominican Republic in late February in order to proceed with the Pueblo Viejo project. Pre-production capital of about $2.7 billion (100% basis) represents the largest foreign investment in the country. Barrick's share of gold production in the first full five years of production is expected to be about 600,000 ounces per year at total cash costs of about $250 per ounce.

In Nevada, detailed engineering is essentially complete at Cortez Hills, which remains on schedule and within the $480 - $500 million pre-production capital budget. About 50% of funds have been committed or spent on the purchase of the bulk of mobile equipment and on significant underground development. During the quarter, $17 million was spent on procurement of crusher and conveyor equipment and engineering for the project infrastructure. The exploration decline advanced an additional 544 meters and is about 95% complete. Pre-production waste stripping is expected to commence in late 2008 once a Record of Decision is issued and becomes effective.

A feasibility study has been completed on the Sedibelo platinum project in South Africa, entitling the Company to a 10% interest and the right to earn an additional 40% on a decision to mine. The Company will determine a course of action on Sedibelo in due course. The feasibility study shows attractive economics based on an assumed life-of-mine production of 4.76 million ounces of four elements or 4E (platinum, palladium, rhodium and gold) and pre-production capital of about $700 million. Annual production in the first full five years of a minimum 16 year mine life is estimated to be about 240,000 4E ounces (100% basis) at cash costs of about $700 per 4E ounce. The feasibility contemplates initial production from open pit sources, followed by a ramp up of underground operations which is expected to increase average annual production to over 290,000 4E ounces (100% basis) at cash costs of about $600 per 4E ounce over the first full 10 years. The current weighted average market price for the basket of metals at Sedibelo is about $2,100 per 4E ounce.

Feasibility studies are on track for completion at the Fedorova PGM project in Russia in the second half of 2008 and at the large Reko Diq gold-copper project on the highly prospective Tethyan Belt in Pakistan in early 2009.

At the Kabanga JV in Tanzania, operator Xstrata Plc expects to conclude a pre-feasibility study in the third quarter of 2008.

EXPLORATION

Our 2007 exploration spend of $179 million was successful in replacing reserves and materially grew measured, indicated and inferred resources. Barrick's 2008 exploration budget of $200 million is designed to build on recent discoveries and acquisitions such as the Monte Oculto zone at Pueblo Viejo and Kainantu in Papua New Guinea and is weighted towards resource additions and reserve conversion at and around mine sites, while also evaluating exploration opportunities in emerging districts around the world.

The Company's top exploration focus remains in Nevada, where 23 exploration drill rigs are active at Cortez, Bald Mountain, Goldstrike, Turquoise Ridge, Arturo-Dee, and Pinson. Drift development was completed at the High Grade Bullion Zone at Turquoise Ridge and initial results from the underground drill program are confirming the potential of the zone. At Cortez Hills, in-fill and extension drill programs are underway and results are expected throughout the year.

Barrick's exploration activities in Papua New Guinea (PNG) are focused on defining new resources at Porgera and on our extensive Kainantu land package, where drilling is expected to commence on the Kora target early in Q2. Target delineation and drill testing programs are also planned for the Wamun, Tabar and Tatau projects in the second quarter.

During the quarter, the Company entered into a JV agreement with Allied Gold on a 200 square kilometer land package on the Big Tabar and Tatau Islands in PNG, located between the producing Lihir and Simberi mines. Barrick can earn up to a 70% interest by spending $18 million on exploration and has budgeted $2.1 million in year 1 for 5,000 meters of diamond drilling, geophysical surveys and a geochemical and mapping program.

At Pueblo Viejo, drill programs are in progress to test previously identified targets near the current pit areas and the Monte Oculto discovery.

At Reko Diq in Pakistan, resource definition, condemnation and exploration drilling are ongoing, with about 40,000 meters of a planned 210,000 meters drilled in 2008 and 8 drill rigs on site. A total of 114,000 meters have been drilled to date and results continue to demonstrate the project's district exploration potential. At year-end 2007, Barrick's share of measured and indicated gold resources totaled 3.7 million ounces and its share of measured and indicated copper resources were 4.3 billion pounds. Inferred gold resources grew 6.1 million ounces to 10.5 million ounces and inferred copper resources increased by 9.1 billion pounds to 13.4 billion pounds.(3)

At Zaldivar, a 40,000-meter initial drill program in 2007 tested the deep sulfide potential beneath the open pit. Measured and indicated copper resources increased 20% to 0.9 billion pounds and inferred copper resources grew about 180% to 1.8 billion pounds in 2007. The Company is spending about $6 million in 2008 on 35,000 meters of in-fill drilling in order to upgrade the deep sulfide resource.

CORPORATE DEVELOPMENT

During the quarter, the Company purchased the remaining 40% interest in Cortez for cash of $1.695 billion, giving Barrick 100% ownership of this key, long life asset. Barrick has been entitled to the production and economic benefit of 100% of the property from March 1, 2008.

The acquisition will increase Barrick's share of proven and probable reserves by 4.6 million ounces to 11.5 million ounces and measured and indicated mineral resources by 1.4 million ounces to 3.5 million ounces.

CORPORATE SOCIAL RESPONSIBILITY

Barrick remains committed to a global strategy to help build sustainable, healthy communities.

In 2007, the Company injected over $6 billion into the economies of host countries and local communities, including $4.1 billion in goods and services from local businesses, $1.5 billion in royalties and taxes and voluntary payments and $1.0 billion in wages and benefits. These figures represent the Company's ongoing commitment to share the benefits of mining and build stronger and more prosperous communities wherever we operate.

INNOVATION

Scientists worldwide responded to Barrick's Unlock the Value program, which offers $10 million for a way to increase silver recovery at the Veladero mine in Argentina from the current 6.7% level. Launched in September 2007, the program is an innovative approach to research and development through the internet. The deadline for preliminary submissions closed April 30. Barrick received a total of 187 proposals, far exceeding expectations. The program website www.unlockthevalue.com drew 65,000 visitors. In addition, a total of 2,018 scientists registered as participants on the website to network with Barrick, providing a platform for future research and innovation. Over the next several months, the preliminary proposals will be assessed by an expert panel on various criteria, including technical viability and ability to be safely implemented at Veladero. Participants will be notified if their proposals have been selected for phase two of the program, and those selected will be asked to submit a detailed proposal.

FINANCIAL POSITION

At March 31, 2008, Barrick maintained the gold industry's strongest credit rating, with a cash balance of $1.9 billion and net debt of $2.2 billion after drawing from its credit facility to complete the Cortez cash transaction. This strong liquidity, combined with the robust cash flows being generated at current gold and copper prices, positions the Company well to continue building out its deep project pipeline without the need for equity dilution.

Barrick's vision is to be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner. Barrick's shares are traded on the Toronto and New York stock exchanges.

(1) Adjusted net income, adjusted net income per share, EBITDA, EBITDA per share, adjusted EBITDA and adjusted EBITDA per share are each non-GAAP measures. For further information on these measures, see pages 24 - 25 of the Company's MD&A.

(2) Total cash costs per ounce/pound is defined as cost of sales divided by ounces of gold sold or pounds of copper sold. Total cash costs per ounce/pound exclude amortization expense and inventory purchase accounting adjustments. For further information on this operating performance measure see pages 26 - 28 of the Company's MD&A.

(3) Calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, Pueblo Viejo is classified as mineralized material. For a breakdown of reserves and resources by category and additional information relating to 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.

Key Statistics

Barrick Gold Corporation                                 Three months ended
(in United States dollars)                                         March 31,
                                                   -------------------------
(Unaudited)                                           2008             2007
----------------------------------------------------------------------------
Operating Results
Gold production (thousands of ounces)(1)             1,743            2,029
Gold sold (thousands of ounces)(1)                   1,729            2,121

Per ounce data
 Average spot gold price                           $   925          $   650
 Average realized gold price(5),(6)                    925              386
 Total cash costs(2)                                   393              309
 Amortization(3)                                       108               94
 Total production costs                                501              403

Copper production (millions of pounds)                  87              100
Copper sold (millions of pounds)                        98               91

Per pound data
 Average spot copper price                         $  3.52          $  2.69
 Average realized copper price(5),(6)                 3.54             2.77
 Total cash costs(2)                                  0.94             0.80
 Amortization(3)                                      0.36             0.42
 Total production costs                               1.30             1.22
----------------------------------------------------------------------------

Financial Results (millions)
Sales                                              $ 1,958          $ 1,089
Net income (loss)                                      514            (159)
Operating cash flow                                    728              163

Per Share Data (dollars)
 Net income (loss) (basic)                            0.59           (0.18)
 Net income (diluted)                                 0.58           (0.18)
 Operating cash flow (basic)                          0.83             0.19
 Operating cash flow (diluted)                        0.82             0.19

Weighted average basic common shares (millions)        872              865
Weighted average diluted common shares
 (millions)(4)                                         885              877

                                                     As at            As at
                                                  March 31,     December 31,
                                                  --------------------------
                                                      2008             2007
----------------------------------------------------------------------------
Financial Position (millions)
Cash and equivalents                               $ 1,931          $ 2,207
Non-cash working capital                               965            1,029
Long-term debt                                       4,137            3,153
Shareholders' equity                                15,711           15,256
----------------------------------------------------------------------------

(1) Production includes equity gold ounces in Highland Gold. Gold
    production also includes an additional 20% share of production from
    the Porgera mine and 40% share of production from the Cortez mine,
    from April 1, 2007 and March 1, 2008 onwards, respectively.
(2) Represents equity cost of goods sold plus royalties and production
    taxes, less by-product revenues, divided by equity ounces of gold sold
    or pounds of copper sold. For further information on this performance
    measure, refer to pages 26 to 28 of the Company's MD&A. Excludes
    amortization and inventory purchase accounting adjustments.
(3) Represents equity amortization expense and inventory purchase
    accounting adjustments at the Company's producing mines divided by
    equity ounces of gold sold or pounds of copper sold.
(4) Fully diluted, includes dilutive effect of stock options and
    convertible debt.
(5) Calculated as consolidated gold sales divided by consolidated ounces
    sold or consolidated copper sales divided by consolidated pounds sold.
(6) Realized prices represents gold and copper revenues under US GAAP,
    adjusted for unrealized gains and losses on non-hedge derivatives.
    For further information on this performance measure, refer to pages
    25 to 26 of the Company's MD&A.



Production and Cost Summary

                                       Gold Production     Total Cash Costs
                          (attributable ounces) (000's)             (US$/oz)
----------------------------------------------------------------------------
                                    Three months ended   Three months ended
                                              March 31,            March 31,
------------------------------------------------------- --------------------
(Unaudited)                              2008     2007        2008     2007
------------------------------------------------------- --------------------
North America(1)                          614      786       $ 497    $ 347
South America                             541      569         193      141
Australia Pacific                         435      490         438      421
Africa                                    144      178         508      327
Other                                       9        6         410      316
----------------------------------------------------------------------------
Total                                   1,743    2,029       $ 393    $ 309
----------------------------------------------------------------------------

                                     Copper Production     Total Cash Costs
                       (attributable pounds) (Millions)             (US$/lb)
----------------------------------------------------------------------------
                                    Three months ended   Three months ended
                                              March 31,            March 31,
------------------------------------------------------- --------------------
(Unaudited)                              2008     2007        2008     2007
------------------------------------------------------- --------------------
South America                              73       80      $ 0.76   $ 0.65
Australia Pacific                          14       20        1.56     1.48
----------------------------------------------------------------------------
Total                                      87      100      $ 0.94   $ 0.80
----------------------------------------------------------------------------

                                        Total Gold Production Costs (US$/oz)
----------------------------------------------------------------------------
                                                          Three months ended
                                                                   March 31,
----------------------------------------------------------------------------
(Unaudited)                                                   2008     2007
----------------------------------------------------------------------------
 Direct mining costs at market foreign exchange rates        $ 410    $ 316
 Gains realized on currency and commodity hedge contracts     (29)     (16)
 By-product credits                                           (20)     (14)
----------------------------------------------------------------------------
Cash operating costs                                           361      286
 Royalties                                                      28       19
 Production taxes                                                5        4
----------------------------------------------------------------------------
Total cash costs(2)                                            393      309
 Amortization                                                  108       94
----------------------------------------------------------------------------
Total production costs                                       $ 501    $ 403
----------------------------------------------------------------------------

                                      Total Copper Production Costs (US$/lb)
                                                         Three months ended
                                                                   March 31,
----------------------------------------------------------------------------
(Unaudited)                                                   2008     2007
----------------------------------------------------------------------------
Cash operating costs                                        $ 0.92   $ 0.79
 Royalties                                                    0.02     0.01
----------------------------------------------------------------------------
Total cash costs(2)                                           0.94     0.80
 Amortization                                                 0.36     0.33
 Inventory purchase accounting adjustments                       -     0.09
----------------------------------------------------------------------------
Total production costs                                      $ 1.30   $ 1.22
----------------------------------------------------------------------------

(1) Barrick's share of Cortez' production and total cash costs increased to
    100% effective March 1, 2008.
(2) Total cash costs per ounce/pound excludes amortization and inventory
    purchase accounting adjustments. Total cash costs per ounce/pound is a
    performance measure that is used throughout this First Quarter Report
    2008. For more information see pages 26 to 28 of the Company's MD&A.



Consolidated Statements of Income

Barrick Gold Corporation
(in millions of United States dollars,                   Three months ended
 except per share data) (Unaudited)                                March 31,
----------------------------------------------------------------------------
                                                      2008             2007
----------------------------------------------------------------------------
Sales (notes 4 and 5)                              $ 1,958          $ 1,089
----------------------------------------------------------------------------
Costs and expenses
Cost of sales (notes 4 and 6)(1)                       775              740
Amortization and accretion (notes 4 and 14)            241              220
Corporate administration                                33               33
Exploration (note 9)                                    43               30
Project development expense (note 9)                    46               37
Other expense (note 7A)                                 54               38
Impairment charges (note 7B)                            41                -
----------------------------------------------------------------------------
                                                     1,233            1,098
----------------------------------------------------------------------------
Interest income                                         17               39
Interest expense (note 15B)                            (6)             (36)
Other income (note 7C)                                  32               18
----------------------------------------------------------------------------
                                                        43               21
----------------------------------------------------------------------------
Income before income taxes and other items             768               12
Income tax expense (note 8)                          (253)            (147)
Non-controlling interests                              (3)              (3)
Income (loss) from equity investees (note 12)            2             (21)
----------------------------------------------------------------------------
Net income (loss) for the period                    $  514         $  (159)
----------------------------------------------------------------------------
Earnings (loss) per share data (note 10):
Net income (loss)
 Basic                                              $ 0.59         $ (0.18)
 Diluted                                            $ 0.58         $ (0.18)
----------------------------------------------------------------------------

(1) Exclusive of amortization (note 4).

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



Consolidated Statements of Cash Flow

Barrick Gold Corporation                                 Three months ended
(in millions of United States dollars) (Unaudited)                 March 31,
----------------------------------------------------------------------------
                                                      2008             2007
----------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income (loss) for the period                     $ 514          $ (159)
Amortization and accretion (notes 4 and 14)            241              220
Income tax expense (note 8)                            253              147
Income taxes paid                                    (127)            (129)
Impairment charges (note 7B)                            41                -
Increase in inventory (note 13)                      (133)             (20)
Other items (note 11)                                 (61)              104
----------------------------------------------------------------------------
Net cash provided by operating activities              728              163
----------------------------------------------------------------------------
INVESTING ACTIVITIES
Property, plant and equipment
 Capital expenditures (note 4)                       (265)            (248)
 Sales proceeds                                          4                6
Acquisitions, net of cash acquired of $21 (note 3) (1,722)                -
Available-for-sale securities
 Purchases                                            (15)              (4)
 Sales proceeds                                          2                3
Long-term supply contract (note 12)                   (35)                -
Other investing activities                            (35)             (27)
----------------------------------------------------------------------------
Net cash used in investing activities              (2,066)            (270)
----------------------------------------------------------------------------
FINANCING ACTIVITIES
Capital stock
 Proceeds on exercise of stock options                  70               31
Debt
 Proceeds                                              990                -
 Repayments                                            (5)              (9)
----------------------------------------------------------------------------
Net cash provided by financing activities            1,055               22
----------------------------------------------------------------------------
Effect of exchange rate changes on cash
 and equivalents                                         7                1
----------------------------------------------------------------------------
Net decrease in cash and equivalents                 (276)             (84)
Cash and equivalents at beginning of period          2,207            3,043
----------------------------------------------------------------------------
Cash and equivalents at end of period              $ 1,931          $ 2,959
----------------------------------------------------------------------------

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



Consolidated Balance Sheets

Barrick Gold Corporation
(in millions of United States dollars)    As at March 31, As at December 31,
(Unaudited)                                         2008               2007
----------------------------------------------------------------------------
ASSETS
Current assets
 Cash and equivalents                           $  1,931           $  2,207
 Accounts receivable                                 291                256
 Inventories (note 13)                             1,246              1,129
 Other current assets                                774                707
----------------------------------------------------------------------------
                                                   4,242              4,299
Non-current assets
 Investments (note 12)                               123                142
 Equity method investments (note 12)               1,147              1,074
 Property, plant and equipment (note 14)          10,339              8,596
 Goodwill                                          5,865              5,847
 Intangible assets                                    75                 68
 Other assets                                      2,102              1,925
----------------------------------------------------------------------------
Total assets                                    $ 23,893           $ 21,951
----------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
 Accounts payable                               $    874           $    808
 Short term debt (note 15)                           234                233
 Other current liabilities                           472                255
----------------------------------------------------------------------------
                                                   1,580              1,296

Non-current liabilities
 Long-term debt (note 15)                          4,137              3,153
 Asset retirement obligations                        932                892
 Deferred income tax liabilities                     858                841
 Other liabilities                                   582                431
----------------------------------------------------------------------------
Total liabilities                                  8,089              6,613
----------------------------------------------------------------------------
Non-controlling interests                             93                 82
----------------------------------------------------------------------------
Shareholders' equity
 Capital stock (note 17)                          13,348             13,273
 Retained earnings                                 2,346              1,832
 Accumulated other comprehensive income
  (note 18)                                           17                151
----------------------------------------------------------------------------
Total shareholders' equity                        15,711             15,256
----------------------------------------------------------------------------
Contingencies and commitments (notes 14 and 20)
----------------------------------------------------------------------------
Total liabilities and shareholders' equity       $23,893            $21,951
----------------------------------------------------------------------------

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



Consolidated Statements of Shareholders' Equity

Barrick Gold Corporation
For the three months ended March 31
(in millions of United States dollars) (Unaudited)
----------------------------------------------------------------------------
                                                    2008               2007
----------------------------------------------------------------------------
Common shares (number in millions)
At January 1                                         870                864
 Issued on exercise of stock options                   2                  1
----------------------------------------------------------------------------
At March 31                                          872                865
----------------------------------------------------------------------------
Common shares (dollars in millions)
At January 1                                    $ 13,273           $ 13,106
 Issued on exercise of stock options                  70                 31
 Recognition of stock option expense                   5                  5
----------------------------------------------------------------------------
At March 31                                     $ 13,348           $ 13,142
----------------------------------------------------------------------------
Retained earnings
At January 1                                    $  1,832           $    974
 Net income (loss)                                   514              (159)
----------------------------------------------------------------------------
At March 31                                     $  2,346           $    815
----------------------------------------------------------------------------
Accumulated other comprehensive income
 (note 18)                                      $     17           $    126
----------------------------------------------------------------------------
Total shareholders' equity at March 31          $ 15,711           $ 14,083
----------------------------------------------------------------------------



Consolidated Statements of Comprehensive Income

Barrick Gold Corporation                                 Three months ended
(in millions of United States dollars) (Unaudited)                 March 31,
----------------------------------------------------------------------------
                                                    2008               2007
----------------------------------------------------------------------------
Net income (loss)                                  $ 514            $ (159)
Other comprehensive income (loss) net of tax
 (note 18)                                         (134)                  7
----------------------------------------------------------------------------
Comprehensive income (loss)                        $ 380            $ (152)
----------------------------------------------------------------------------

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



CORPORATE OFFICE                    TRANSFER AGENTS AND REGISTRARS
Barrick Gold Corporation            CIBC Mellon Trust Company
Brookfield Place, TD Canada Trust   P.O. Box 7010,
Tower, Suite 3700                   Adelaide Street 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 and         Fax: (416) 643-5501
United States: 1-800-720-7415       Email: inquiries@cibcmellon.com
Email: investor@barrick.com         Website: www.cibcmellon.com
Website: www.barrick.com


SHARES LISTED                       BNY MELLON SHAREOWNER SERVICES
ABX - The Toronto Stock Exchange    480 Washington Blvd. - 27th Floor
       The New York Stock ExchangeJersey City, NJ 07310
                                    Tel: 1-800-589-9836
                                    Fax: (201) 680-4665
                                    Email: shrrelations@mellon.com
                                    Website: www.melloninvestor.com


INVESTOR CONTACT                    MEDIA CONTACT
Deni Nicoski                        Vincent Borg
Vice President,                     Senior Vice President,
Investor Relations                  Corporate Communications
Tel: (416) 307-7410                 Tel: (416) 307-7477
Email: dnicoski@barrick.com         Email: vborg@barrick.com

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this First Quarter Report 2008, including any information as to our strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "will", "anticipate", "contemplate", "target", "plan", "continue', "budget", "may", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold, copper or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets; changes in U.S. dollar interest rates or gold lease rates; risks arising from holding derivative instruments; ability to successfully complete announced transactions and integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and increasing costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; adverse changes in our credit rating, level of indebtedness and liquidity, contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Contacts:
INVESTOR CONTACT: Deni Nicoski
Vice President, Investor Relations
(416) 307-7410
Email: dnicoski@barrick.com

MEDIA CONTACT: Vincent Borg
Senior Vice President, Corporate Communications
(416) 307-7477
Email: vborg@barrick.com

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Gold  $ 1,282.15 +0.23 +0.02% Volume: October 18, 2017
ABX NYSE  $ 16.17 -0.05 -0.31% Volume: 6,209,003 October 18, 2017
ABX TSX  $ 20.16 -0.17 -0.84% Volume: 1,431,162 October 18, 2017
Gold  $ 1,282.15 +0.23 +0.02% Volume: October 18, 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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