news-details

Barrick Q2 Net Income Rises 22% to $0.56 per Share: Cash Margins Increase 68% to $477 per Ounce

July 31, 2008

TORONTO, ONTARIO -- (MARKET WIRE) -- 07/31/08 -- SECOND QUARTER REPORT - JULY 31, 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 and mine statistics, please see the Company's website, www.barrick.com.

Highlights

- Barrick reported second quarter net income of $485 million ($0.56 per share) and operating cash flow of $531 million ($0.61 per share) compared to net income of $396 million ($0.46 per share) and operating cash flow of $336 million ($0.39 per share) in the prior year period. Net income rose 22% and operating cash flow increased 58% compared to the prior year period.

- Second quarter gold production was 1.86 million ounces at total cash costs of $417 per ounce(1), and copper production was 87 million pounds at total cash costs of $1.08 per pound(1).

- Higher gold prices have significantly outpaced year on year cash cost increases from energy and other inflationary pressures. Revenues expanded 20% from the year ago quarter to $2.0 billion and cash margins have increased 68% to $477 per ounce over the same prior year period.

- Significant progress continues to be made at the Company's three most advanced projects. The Buzwagi project in Tanzania is expected to produce first gold in mid-2009 and receipt of the Record of Decision for Cortez Hills in Nevada is anticipated during the second half of 2008, enabling the start of a 15 month construction period. Site work has commenced at Pueblo Viejo in the Dominican Republic, a significant number of long lead time items have been secured and approximately one-third of the capital budget has been committed or is subject to firm pricing.

- Subsequent to quarter end, the Company announced an all cash offer to purchase an oil and gas producer in Western Canada which is expected to provide a long term economic hedge of about one-quarter of Barrick's annual direct oil consumption and is intended to mitigate industry-wide energy cost challenges. Barrick has also agreed to sell certain non-core royalties to Royal Gold Inc., in exchange for $150 million in cash and a reduced royalty structure on the Crossroads deposit contiguous to the Cortez mine in Nevada.

- Barrick continues to be in line with its gold production guidance for 2008 of 7.6 - 8.1 million ounces but now expects full year production to trend towards the lower end of the range. With higher assumed energy, gold and other consumables prices, total cash costs for 2008 have been revised and are now expected to be in the range of $425 - $445 per ounce.

Barrick Gold Corporation reported Q2 production of 1.86 million ounces of gold at total cash costs of $417 per ounce compared to 1.96 million ounces produced at total cash costs of $340 per ounce for the prior year period.

Second quarter net income of $485 million ($0.56 per share) and operating cash flow of $531 million ($0.61 per share) compared to net income of $396 million ($0.46 per share) and operating cash flow of $336 million ($0.39 per share) in the prior year period. Net income rose 22% and operating cash flow increased 58% compared to the prior year period. The increase in second quarter operating cash flow was partially offset by higher inventories as well as the timing of income tax payments which are generally higher in the first and second quarters. EBITDA of $886 million was 20% higher than prior year EBITDA of $740 million(2). Reported net income included post-tax special items of $31 million that caused earnings to increase by $0.04 per share.

Higher gold prices have significantly outpaced year on year cash cost increases from energy and other inflationary pressures. Revenues expanded 20% from the year ago quarter to $2.0 billion and cash margins have risen 68% to $477 per ounce over the same prior year period despite a 91% jump in oil prices, which averaged $124 per barrel compared to $65 per barrel in the same period a year ago.

"Barrick has posted another quarter of solid financial results despite surging energy costs," said Peter Munk, Chairman and interim CEO of Barrick. "Our recent offer for Cadence Energy forms part of a long term strategy to confront energy cost challenges facing our industry and is another example of Barrick's ability to leverage its financial strength in innovative ways."

PRODUCTION AND COSTS

In Q2 2008, Barrick produced 1.86 million ounces of gold at total cash costs of $417 per ounce and realized a gold price of $894 per ounce. Higher production is anticipated for the balance of the year largely as a result of better grades at the Goldstrike operation. Production is expected to be weighted to the last quarter of the year, which is also expected to have lower cash costs than Q3.

The South American business unit produced 0.54 million ounces of gold in Q2 at total cash costs of $270 per ounce. The Lagunas Norte mine continued to benefit from positive grade reconciliations, producing 0.26 million ounces of gold at total cash costs of $135 per ounce. The Veladero mine produced 0.16 million ounces at total cash costs of $464 per ounce.

The North American business unit contributed 0.69 million ounces in Q2 at total cash costs of $448 per ounce, including 0.37 million ounces from the Goldstrike complex at cash costs of $452 per ounce. Average ore grades processed for the Betze pit in the quarter were 20% lower than the prior year period but increased 28% from Q1 as the waste stripping phase neared completion and ore started to be mined. Production and costs at Goldstrike are expected to improve in the second half, particularly in Q4, as higher grade ore is now being sourced from the open pit. A contractor fatality in April resulted in the decision to place the Getchell mine at the Turquoise Ridge JV on care and maintenance and an expected loss of about 30,000 ounces in 2008.

The Australia Pacific business unit produced 0.47 million ounces in Q2 at total cash costs of $520 per ounce. The Porgera mine contributed 0.15 million ounces at $414 per ounce, while lower grades were experienced at Plutonic, Kanowna, Cowal and Kalgoorlie. Access to higher grade ore at Cowal continues to be restricted due to a slip on the east wall, which is expected to limit production to lower grade stockpiles until Q4. Production at Plutonic was also impacted by an explosion at a gas pipeline in northwestern Australia, which resulted in a loss of gas supply.

Production from the African business unit was 0.15 million ounces in Q2 at total cash costs of $493 per ounce. The Bulyanhulu mine experienced lower mining rates due to continued effects from the illegal strike in late 2007.

Copper production of 87 million pounds was below prior year levels, primarily due to lower leach recoveries at Zaldivar as a result of acid supply shortages and also from ore grade sequencing at the Osborne mine. Copper sales were 78 million pounds at total cash costs of $1.08 per pound and a realized price of $3.65 per pound.

PROJECTS UPDATE

The Buzwagi project in Tanzania continues to remain on track and within its budgeted pre-production capital of $400 million, with about 80% of funds committed or spent. The first gold is expected in mid-2009. Buzwagi is expected to produce 250,000 - 260,000 ounces per year at estimated total cash costs of about $300 per ounce(3) based on an oil price of $100 per barrel.

Work commenced on site at Pueblo Viejo in the Dominican Republic. Dismantling of historical facilities and camp construction is underway, and an accelerated procurement plan is being advanced with approximately one-third of the pre-production capital budget, expected to be about $2.7 billion (100% basis), committed or subject to firm pricing. Post start-up, an additional $0.3 billion (100% basis) is expected to complete the phased expansion to 24,000 tonnes per day. A significant number of long lead time items have been secured, including the mills, autoclaves, tanks, oxygen plant and the entire mining fleet. In addition, almost all of the anticipated structural steel requirements have been purchased. Costs are currently tracking the capital budget, which is largely based on late 2007 input prices. The previous cash cost estimate of $250 per ounce in the first full five years of production was based on initial HFO power, which the Company is currently in the process of securing, and assumed a longer term, lower cost power supply. Assuming life-of-mine HFO power at an oil price of $100 per barrel, cash costs are expected to be in the range of $275 - $300 per ounce(3) for the first full five years of production; however, the Company continues to explore a range of options for lower cost, long term power. Proven and probable reserves at Pueblo Viejo are estimated to have increased by 9% to 22.2 million ounces (100% basis)(4). After a three and a half year construction period, Barrick's share of annual gold production in the first full five years of operation is expected to be about 600,000 ounces.

The Cortez Hills project in Nevada remains on schedule and within its initial capital budget of $480 - $500 million, with over 50% of funds committed or spent. Receipt of the Record of Decision (ROD) is anticipated in the second half, enabling the start of pre-production waste stripping and a 15 month construction period. 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 total cash costs of about $300 per ounce(3) based on an oil price of $100 per barrel.

In Tanzania, Barrick's JV partner Xstrata Plc expects to complete a pre-feasibility study on the world-class Kabanga nickel sulfide deposit in the third quarter of 2008.

In Chile, work is underway to update the feasibility study at Cerro Casale. At Pascua-Lama, we are still awaiting sectoral permits in Argentina and the resolution of certain fiscal matters, including the cross-border tax agreement.

Barrick's South American region has announced plans to increase its investment in the approved wind farm in Chile by $30 million for a total cost of $70 million.

EXPLORATION(5)

The 2008 exploration budget has been increased to $225 million to reflect 100% ownership in Cortez and drilling success at a number of exploration properties.

The Company's top exploration focus remains in Nevada, where drilling focused on confirming potential at Turquoise Ridge and Cortez Hills during the second quarter.

Since acquiring Pueblo Viejo through the Placer Dome transaction, proven and probable reserves have increased by nearly 9 million ounces (100% basis), including over 2 million ounces from the Monte Oculto discovery. Current programs are focusing on three previously identified targets near the existing pit areas and the Monte Oculto deposit.

In Papua New Guinea, work has commenced on the Kora target on the Kainantu property, on the adjacent Wamun property, and on Tabar Island.

CORPORATE DEVELOPMENT

Subsequent to quarter end, Barrick made an all cash offer of Cdn$6.75 per share to acquire Cadence Energy Inc. for a total cost of Cdn$410 million. This innovative transaction is expected to form part of a long term strategy to economically hedge oil exposure at lower rates than currently available in the forward market. The formal offer is expected to be mailed to Cadence shareholders no later than August 5, 2008 and will be open for acceptance for 35 days and subject to certain customary conditions.

In July, Barrick entered into a definitive agreement to sell certain non-core royalties to Royal Gold Inc., in exchange for $150 million in cash and a reduction in various royalties that Barrick would pay to Royal Gold, including those for the Crossroads deposit which is contiguous to Barrick's Cortez mine in Nevada. Barrick is targeting the conversion of all of the existing measured and indicated resource of 1.1 million ounces(6) at Crossroads to the proven and probable reserve category by year end. The deposit has considerable upside potential that current drilling activities are targeting.

FINANCIAL POSITION

At June 30, 2008, Barrick maintained the gold industry's strongest credit rating, with a cash balance of $1.9 billion and net debt of $2.1 billion after drawing from its credit facility to complete the Cortez cash transaction. This liquidity, combined with the robust cash flows being generated, positions the Company well to continue building out its major project pipeline.

OUTLOOK

Stronger gold prices in 2008 have resulted in higher year on year cash margins. Barrick continues to be in line with its gold production guidance for 2008 of 7.6 - 8.1 million ounces but now expects full year production to trend towards the lower end of the range due to lower mining rates at Bulyanhulu; lower ore grades at Plutonic; limited access to higher grade ore at Cowal; and the impact of placing the Getchell mine on care and maintenance.

The industry is experiencing cost pressures from rising energy costs, which comprise about 25% of the Company's total operating expenditures. Accordingly, gold cash costs for the balance of the year are expected to be higher than originally planned due largely to energy costs, higher gold price related costs such as royalties and taxes, and higher costs related to consumables. Original 2008 guidance for total cash costs of $390 - $415 per ounce for gold was based on $800 per ounce gold and $90 per barrel oil price assumptions. Assuming a second half gold price of $950 per ounce and an oil price of $125 per barrel, the Company now expects total cash costs for gold for 2008 to be in the range of $425 - $445 per ounce. Of the difference between earlier and current guidance, about 30% ($10 per ounce) is related to the direct impact of higher oil and energy costs; about 15% ($6 per ounce) is related to higher royalties and taxes and about 30% ($10 per ounce) is related to increases in consumables and labor and the impact of currency movements.

The Company maintains its full year guidance for copper of 380 - 400 million pounds at total cash costs of $1.15 - $1.25 per pound but expects production to be at the low end of the range largely due to acid supply shortages which have impacted leach recoveries at Zaldivar and also from ore grade sequencing at Osborne. Cash costs per pound are also expected to trend to the higher end of guidance, largely due to higher energy costs, exchange rates and acid prices.

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) 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 inventory purchase accounting adjustments, amortization and accretion. For further information on this operating performance measure see pages 29 - 30 of the Company's MD&A.

(2) EBITDA is a non-GAAP measure. For further information on this measure, see pages 27 - 28 of the Company's MD&A.

(3) Inputs other than oil prices are as assumed in the feasibility study.

(4) 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 Pueblo Viejo reserves by category and additional information relating to Pueblo Viejo reserves, see page 17 of the Company's MD&A.

(5) Barrick's exploration programs are designed and conducted under the supervision of Robert Krcmarov, Vice President, Global 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 U.S. Securities and Exchange Commission.

(6) Measured resources contain 3.4 million tons of ore at 0.044 oz/ton for 0.15 million ounces. Indicated resources contain 23.8 million tons of ore at 0.039 oz/ton for 0.93 million ounces. Mineral reserves and resources have been calculated as at December 31, 2007 in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. Calculations have been prepared by employees of Barrick, its joint venture partners or its joint venture operating companies, as applicable, under the supervision of Jacques McMullen, Senior Vice President, Technical Services of Barrick, Rick Allan, Senior Director, Mining of Barrick, and Rick Sims, Senior Director, Resources and Reserves of Barrick. For a more detailed description of the key assumptions, parameters and methods used in calculating Barrick's reserves and resources, see Barrick's most recent Annual Information Form/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         Six months ended
(in United States dollars)                 June 30,                 June 30,
                              ----------------------------------------------
(Unaudited)                      2008         2007        2008         2007
----------------------------------------------------------------------------
Operating Results
Gold production (thousands of
 ounces)(1)                     1,857        1,957       3,600        3,986
Gold sold (thousands of
 ounces)(1)                     1,866        2,006       3,595        4,127

Per ounce data
 Average spot gold price      $   896      $   667     $   910      $   658
 Average realized gold
  price(5),(6)                    894          624         909          502
 Total cash costs(2)              417          340         406          325
 Amortization and other(3)        123           98         115           90
 Total production costs           540          438         521          415

Copper production (millions
 of pounds)                        87          101         174          201
Copper sold (millions of pounds)   78          106         176          197

Per pound data
 Average spot copper price    $  3.83      $  3.47     $  3.68      $  3.07
 Average realized copper
  price(5),(6)                   3.65         3.43        3.59         3.13
 Total cash costs(2)             1.08         0.76        1.00         0.78
 Amortization(3)                 0.36         0.28        0.36         0.32
 Total production costs          1.44         1.04        1.36         1.10
----------------------------------------------------------------------------
Financial Results (millions)
Sales                         $ 1,967      $ 1,642     $ 3,925      $ 2,731
Net income (loss)                 485          396         999          237
Operating cash flow               531          336       1,259          499

Per Share Data (dollars)
 Net income (basic)              0.56         0.46        1.15         0.27
 Net income (diluted)            0.55         0.45        1.13         0.27
 Operating cash flow (basic)     0.61         0.39        1.44         0.58
 Operating cash flow (diluted)   0.60         0.38        1.42         0.57

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

                                                         As at        As at
                                                       June 30, December 31,
                                                       -------- ------------
                                                          2008         2007
------------------------------                         -------- ------------

Financial Position (millions)
Cash and equivalents                                   $ 1,934      $ 2,207
Non-cash working capital                                 1,231        1,029
Long-term debt                                           4,088        3,153
Shareholders' equity                                    16,254       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 26-28 of the Company's MD&A. Excludes
    amortization, accretion 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
    25-26 of the Company's MD&A.



Production and Cost Summary

                             Gold                        Gold
                       Production                  Production
                    (attributable    Total Cash (attributable  Total Cash
                           ounces)        Costs        ounces)      Costs
                           (000's)      (US$/oz)       (000's)    (US$/oz)
----------------------------------------------------------------------------
                     Three months  Three months    Six months    Six months
                            ended         ended         ended         ended
                          June 30,      June 30,      June 30,      June 30,
----------------------------------------------------------------------------
(Unaudited)            2008  2007   2008   2007    2008  2007   2008   2007
----------------------------------------------------------------------------
North America(1)        693   826  $ 448  $ 347   1,307 1,612  $ 472  $ 347
South America           536   461    270    211   1,077 1,030    233    174
Australia Pacific       471   511    520    447     906 1,001    481    433
Africa                  151   145    493    398     295   323    500    355
Other                     6    14    410    459      15    20    410    453
----------------------------------------------------------------------------
Total                 1,857 1,957  $ 417  $ 340   3,600 3,986  $ 406  $ 325
----------------------------------------------------------------------------



                           Copper                     Copper
                       Production                 Production
                    (attributable   Total Cash (attributable     Total Cash
                           pounds)       Costs        pounds)         Costs
                        (Millions)     (US$/lb)    (Millions)       (US$/lb)
----------------------------------------------------------------------------
                     Three months Three months    Six months     Six months
                            ended        ended         ended          ended
                          June 30,     June 30,      June 30,       June 30,
----------------------------------------------------------------------------
(Unaudited)            2008  2007   2008   2007    2008  2007   2008   2007
----------------------------------------------------------------------------
South America            69    78 $ 0.90 $ 0.66     142   158 $ 0.83 $ 0.66
Australia Pacific        18    23   1.77   1.32      32    43   1.66   1.42
----------------------------------------------------------------------------
Total                    87   101 $ 1.08 $ 0.76     174   201 $ 1.00 $ 0.78
----------------------------------------------------------------------------



                                        Total Gold Production Costs (US$/oz)
----------------------------------------------------------------------------
                                                 Three months    Six months
                                                        ended         ended
                                                      June 30,      June 30,
----------------------------------------------------------------------------
(Unaudited)                                        2008  2007   2008   2007
----------------------------------------------------------------------------
 Direct mining costs at market foreign
  exchange rates                                  $ 461 $ 352  $ 434  $ 333
 Gains on currency and commodity hedge
  contracts                                         (61)  (21)   (47)   (18)
 By-product credits                                 (17)  (12)   (19)   (13)
----------------------------------------------------------------------------
Cash operating costs                                383   319    372    302
 Royalties                                           30    18     29     19
 Production taxes                                     4     3      5      4
----------------------------------------------------------------------------
Total cash costs(2)                                 417   340    406    325
 Amortization                                       114    98    111     90
 Inventory purchase accounting adjustments            9     -      4      -
----------------------------------------------------------------------------
Total production costs                            $ 540 $ 438  $ 521  $ 415
----------------------------------------------------------------------------



                                      Total Copper Production Costs (US$/lb)
----------------------------------------------------------------------------
                                                 Three months    Six months
                                                        ended         ended
                                                      June 30,      June 30,
----------------------------------------------------------------------------
(Unaudited)                                       2008   2007   2008   2007
----------------------------------------------------------------------------
Cash operating costs                            $ 1.06 $ 0.75 $ 0.99 $ 0.77
 Royalties                                        0.02   0.01   0.01   0.01
----------------------------------------------------------------------------
Total cash costs(2)                               1.08   0.76   1.00   0.78
 Amortization                                     0.36   0.28   0.36   0.28
 Inventory purchase accounting adjustments           -      -      -   0.04
----------------------------------------------------------------------------
Total production costs                          $ 1.44 $ 1.04 $ 1.36 $ 1.10
----------------------------------------------------------------------------
(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, accretion 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, except per share data)   Three months ended      Six months ended
(Unaudited)                                   June 30,              June 30,
----------------------------------------------------------------------------
                                         2008    2007          2008    2007
----------------------------------------------------------------------------
Sales (notes 4 and 5)                 $ 1,967 $ 1,642       $ 3,925 $ 2,731
Costs and expenses
Cost of sales (notes 4 and 6)(1)          882     776         1,657   1,516
Amortization and accretion
 (notes 4 and 14)                         264     243           505     463
Corporate administration                   38      33            71      66
Exploration (notes 4 and 9)                54      40            97      70
Project development expense (note 9)       83      65           129     102
Impairment charges (note 7B)                -       3            41       3
Other expense (note 7A)                    58      44            95      82
----------------------------------------------------------------------------
                                        1,379   1,204         2,595   2,302
----------------------------------------------------------------------------
Interest income                             5      35            22      74
Interest expense (note 15B)                (8)    (27)          (14)    (63)
Other income (note 7C)                     62      56            77      74
----------------------------------------------------------------------------
                                           59      64            85      85
----------------------------------------------------------------------------
Income from continuing operations
 before income taxes and other
 items                                    647     502         1,415     514
Income tax expense (note 8)              (148)   (121)         (401)   (268)
Non-controlling interests                  (5)     11            (8)      8
Loss from equity investees (note 12)       (9)     (5)           (7)    (26)
----------------------------------------------------------------------------
Income from continuing operations         485     387           999     228
Income from discontinued operations         -       9             -       9
Net income for the period              $  485  $  396        $  999  $  237
----------------------------------------------------------------------------
Earnings per share data (note 10):
Income from continuing operations
 Basic                                 $ 0.56  $ 0.45        $ 1.15  $ 0.26
 Diluted                               $ 0.55  $ 0.44        $ 1.13  $ 0.26
Net income
 Basic                                 $ 0.56  $ 0.46        $ 1.15  $ 0.27
 Diluted                               $ 0.55  $ 0.45        $ 1.13  $ 0.27
----------------------------------------------------------------------------
(1) Exclusive of amortization (note 4).

The notes to these unaudited interim consolidated financial statements,
which are contained in the Second Quarter Report 2008 available on our
website, are an integral part of these unaudited interim consolidated
financial statements.



Consolidated Statements of Cash Flow

Barrick Gold Corporation
(in millions of United                Three months ended   Six months ended
 States dollars) (Unaudited)                     June 30,           June 30,
----------------------------------------------------------------------------
                                           2008     2007      2008     2007
----------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income for the period               $   485  $   396   $   999  $   237
Amortization and accretion
 (notes 4 and 14)                           264      243       505      463
Income tax expense (note 8)                 148      121       401      268
Income taxes paid                          (230)    (219)     (357)    (348)
Increase in inventory (note 13)             (99)     (51)     (232)     (71)
Other items (note 11)                       (37)    (154)      (57)     (50)
----------------------------------------------------------------------------
Net cash provided by operating
 activities                                 531      336     1,259      499
----------------------------------------------------------------------------
INVESTING ACTIVITIES
Property, plant and equipment
 Capital expenditures (note 4)             (326)    (230)     (591)    (478)
 Sales proceeds                               1        4         5       10
Acquisitions, net of cash acquired
 $21 (note 3)                                (4)       -    (1,726)       -
Investments
 Purchases                                   (1)       -       (16)      (4)
 Sales proceeds                              55      508        57      511
Long-term supply contract (note 12)           -        -       (35)       -
Other investing activities                  (37)     (31)      (72)     (58)
----------------------------------------------------------------------------
Net cash provided by (used in)
 investing activities                      (312)     251    (2,378)     (19)
----------------------------------------------------------------------------
FINANCING ACTIVITIES
Capital stock
 Proceeds on exercise of stock options        -       10        70       41
Debt
 Proceeds                                     -        -       990        -
 Repayments                                 (45)    (649)      (50)    (658)
 Dividends                                 (174)    (130)     (174)    (130)
Settlement of derivative instruments
 acquired in Placer Dome acquisition          -     (197)        -     (197)
----------------------------------------------------------------------------
Net cash provided by (used in)
 financing activities                      (219)    (966)      836     (944)
----------------------------------------------------------------------------
Effect of exchange rate changes on
 cash and equivalents                         3        4        10        5
----------------------------------------------------------------------------
Net increase (decrease) in cash
 and equivalents                              3     (375)     (273)    (459)
Cash and equivalents at beginning
 of period                                1,931    2,959     2,207    3,043
----------------------------------------------------------------------------
Cash and equivalents at end
 of period                              $ 1,934  $ 2,584   $ 1,934  $ 2,584
----------------------------------------------------------------------------

The notes to these unaudited interim consolidated financial statements,
which are contained in the Second Quarter Report 2008 available on our
website, 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 June 30,   As at December 31,
(Unaudited)                                       2008                 2007
----------------------------------------------------------------------------
ASSETS
Current assets
 Cash and equivalents                         $  1,934             $  2,207
 Accounts receivable                               238                  256
 Inventories (note 13)                           1,320                1,129
 Other current assets                              920                  707
----------------------------------------------------------------------------
                                                 4,412                4,299

Non-current assets
 Investments (note 12)                             108                  142
 Equity method investments (note 12)             1,156                1,074
 Property, plant and equipment (note 14)        10,483                8,596
 Goodwill                                        5,878                5,847
 Intangible assets                                  74                   68
 Other assets                                    2,244                1,925
----------------------------------------------------------------------------
Total assets                                  $ 24,355             $ 21,951
----------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
 Accounts payable                             $    867             $    808
 Short-term debt (note 15)                         237                  233
 Other current liabilities                         380                  255
----------------------------------------------------------------------------
                                                 1,484                1,296

Non-current liabilities
 Long-term debt (note 15)                        4,088                3,153
 Asset retirement obligations                      945                  892
 Deferred income tax liabilities                   934                  841
 Other liabilities                                 479                  431
----------------------------------------------------------------------------
Total liabilities                                7,930                6,613
----------------------------------------------------------------------------
Non-controlling interests                          124                   82
----------------------------------------------------------------------------
Shareholders' equity
 Capital stock (note 17)                        13,352               13,273
 Retained earnings                               2,657                1,832
 Accumulated other comprehensive income
  (note 18)                                        292                  151
----------------------------------------------------------------------------
Total shareholders' equity                      16,301               15,256
----------------------------------------------------------------------------
Contingencies and commitments
 (notes 14 and 20)
----------------------------------------------------------------------------
Total liabilities and shareholders' equity    $ 24,355             $ 21,951
----------------------------------------------------------------------------

The notes to these unaudited interim consolidated financial statements,
which are contained in the Second Quarter Report 2008 available on our
website, are an integral part of these unaudited interim consolidated
financial statements.



Consolidated Statements of Shareholders' Equity

Barrick Gold Corporation
For the six months ended June 30
(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 June 30                                                    872       865
----------------------------------------------------------------------------
Common shares (dollars in millions)
At January 1                                             $ 13,273  $ 13,106
 Issued on exercise of stock options                           70        41
 Recognition of stock option expense                            9         9
----------------------------------------------------------------------------
At June 30                                               $ 13,352  $ 13,156
----------------------------------------------------------------------------
Retained earnings
At January 1                                             $  1,832  $    974
 Net income                                                   999       237
 Dividends                                                   (174)     (130)
----------------------------------------------------------------------------
At June 30                                               $  2,657  $  1,081
----------------------------------------------------------------------------
Accumulated other comprehensive income (note 18)         $    292  $     93
----------------------------------------------------------------------------
Total shareholders' equity at June 30                    $ 16,301  $ 14,330
----------------------------------------------------------------------------



Consolidated Statements of Comprehensive Income

Barrick Gold Corporation               Three months ended  Six months ended
(in millions of United States dollars)            June 30,          June 30,
                                      --------------------------------------
(Unaudited)                                  2008    2007      2008    2007
----------------------------------------------------------------------------
Net income                                  $ 485   $ 396   $   999   $ 237
Other comprehensive income (loss)
 net of tax (note 18)                         275     (33)      141     (26)
----------------------------------------------------------------------------
Comprehensive income                        $ 760   $ 363   $ 1,140   $ 211
----------------------------------------------------------------------------

The notes to these unaudited interim consolidated financial statements,
which are contained in the Second Quarter Report 2008 available on our
website, 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 Exchange   Jersey City, NJ 07310
                                    Tel: 1-800-589-9836
                                    Fax: (201) 680-4665
                                    Email: shrrelations@mellon.com
                                    Website: www.melloninvestor.com

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this Second 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". More particularly and without limitation, this Second Quarter Report 2008 contains forward-looking statements and information concerning Cadence's petroleum and natural gas production, reserves and resource and reserve life index. 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; the risks involved in the exploration, development and mining business; future well production rates; reserve and resource volumes; reserve life index; the performance of existing wells; and the success obtained in drilling new wells.

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  $ 1,296.75 +1.26 +0.1% Volume: October 16, 2017
ABX NYSE  $ 16.24 -0.43 -2.58% Volume: 9,896,438 October 16, 2017
ABX TSX  $ 20.35 -0.45 -2.16% Volume: 1,944,416 October 16, 2017
Gold  $ 1,296.75 +1.26 +0.1% Volume: October 16, 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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