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Barrick Reports Q2 2010 Financial and Operating Results

July 29, 2010

SECOND QUARTER REPORT 2010
Based on US GAAP and expressed in US dollars
July 29, 2010

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Highlights

  • Reported Q2 net income rose 59% to a record $783 million ($0.79 per share). Adjusted Q2 net income rose 76% to $759 million ($0.77 per share)(1) compared to $431 million ($0.49 per share) in Q2 2009. Operating cash flow rose 42% to $1.02 billion from $718 million in the prior year period and exceeded $2 billion in the first half of 2010.
  • Q2 gold production of 1.94 million ounces at total cash costs of $457 per ounce(1) or net cash costs of $358 per ounce(1), was ahead of plan on strong performance from the North and South America regions. Barrick remains on track with its original full year production guidance of 7.6-8.0 million ounces at total cash costs of $425-$455 per ounce or net cash costs of $345-$375 per ounce(2).
  • Lower cash costs in 2010 are expected to allow Barrick to fully capture the benefits of higher gold prices. Q2 cash margins increased 56% to $748 per ounce(1) from $479 per ounce in Q2 2009 and net cash margins increased 48% to $847 per ounce(1) from $571 per ounce in the prior year period.
  • Cortez Hills continues to exceed plan following its successful ramp-up in Q1. The Cortez property produced 0.29 million ounces at total cash costs of $308 per ounce in Q2 and is on track to exceed its original production guidance for 2010.
  • The Pueblo Viejo(3) and Pascua-Lama projects remain in line with their respective pre-production capital budgets with first production expected in Q4 2011 and Q1 2013, respectively. At full capacity and combined with Cortez Hills, these projects are forecast to contribute about 2.4 million ounces(4) of annual production at low cash costs.
  • The terms for $1.035 billion (100% basis) in non-recourse project financing for the Pueblo Viejo project were finalized during the quarter and approximately $780 million (100% basis) has been received in the first draw on this financing.
  • Barrick's Board of Directors has authorized a quarterly dividend of 12 cents per share, which represents a 20% increase from the previous dividend(5). The Company expects to move from a semi-annual dividend to a quarterly dividend going forward. The Company's positive outlook on the gold price, combined with a strong financial position, quarter-end cash of $3.9 billion and $2.1 billion of operating cash flow in H1 2010, has allowed Barrick to continue to make high return investments in its project pipeline and at the same time increase its dividend. As the gold price has increased in the last five years, Barrick has increased its dividend by almost 120%.

Q2 production of 1.94 million ounces of gold at total cash costs of $457 per ounce or net cash costs of $358 per ounce was ahead of plan primarily due to strong performances from Cortez, Goldstrike, and Lagunas Norte. The realized gold price for the quarter was $1,205 per ounce(1), $8 per ounce above the average spot price of $1,197 per ounce. Cash margins increased 56% to $748 per ounce from $479 per ounce in Q2 2009. Net cash margins increased 48% to $847 per ounce from $571 per ounce in the same prior year period.

Adjusted Q2 net income rose 76% to $759 million ($0.77 per share), reflecting higher production and sales in conjunction with higher realized gold prices, compared to $431 million ($0.49 per share) in Q2 2009. Reported Q2 net income of $783 million ($0.79 per share) before net adjustments of $24 million was a Company record. Operating cash flow rose 42% to $1.02 billion from $718 million in the prior year period.

"We had another good quarter with solid operational and financial results. Our operating costs were stable and when combined with the higher realized gold price led to significant margin expansion, record quarterly earnings and strong cash flow generation," said Aaron Regent, Barrick's President and CEO. "We continued to advance our project pipeline in line with our plans. In particular, Cortez Hills has been completed and is performing exceptionally well and the construction of Pueblo Viejo and Pascua-Lama continue to move forward. The outlook for the price of gold remains very positive and Barrick will continue to be a major beneficiary."

PRODUCTION AND COSTS

Q2 production of 1.94 million ounces at total cash costs of $457 per ounce or net cash costs of $358 per ounce exceeded plan. The Company continues to expect 2010 production to increase to 7.6-8.0 million ounces of gold at lower total cash costs of $425-$455 per ounce or net cash costs of $345-$375 per ounce. Total cash costs are expected to trend toward the higher end of the range primarily due to increased royalties as gold prices have traded higher(6) and as a result of a change in the production mix.

Following a strong Q1, the North America region delivered another quarter of results which were ahead of plan, producing 0.76 million ounces at total cash costs of $506 per ounce in Q2 on continued strong performances from Cortez and Goldstrike. With Cortez expected to exceed its original guidance, full year production for the region is now anticipated to increase to 3.125-3.175 million ounces of gold and total cash costs are anticipated to be at the higher end of the range of $450-$475 per ounce due to increased royalties and production taxes.

The Cortez property continued to exceed plan, producing 0.29 million ounces at total cash costs of $308 per ounce on higher than expected grades from the Cortez Hills open pit and underground. Cortez Hills continues to operate under the terms of the tailored injunction issued by the District Court while the Bureau of Land Management completes a Supplementary Environmental Impact Study (SEIS) on three aspects identified by the 9th Circuit Court of Appeals. The Company continues to expect completion of the SEIS and a Record of Decision to be issued by year-end.

The Goldstrike operation also performed ahead of plan, producing 0.30 million ounces at total cash costs of $566 per ounce in Q2 primarily due to better than expected grades from the open pit and higher roaster throughput. As planned, Goldstrike is expected to access higher grade material in the second half of the year.

The South American business unit produced 0.57 million ounces at total cash costs of $233 per ounce in Q2. Lagunas Norte exceeded plan, producing 0.25 million ounces at total cash costs of $163 per ounce due to changes in the mine plan. As a result, production at Lagunas Norte is expected to be lower in the second half of the year, before increasing again in early 2011. The Veladero mine produced 0.26 million ounces at total cash costs of $279 per ounce and is expected to produce over 1.0 million ounces in 2010. Full year production for the South America region is now expected to decrease to 2.05-2.10 million ounces of gold at total cash costs of $240-$270 per ounce, primarily as a result of the changes in the mine plan at Lagunas Norte.

The Australia Pacific business unit contributed production of 0.48 million ounces at total cash costs of $622 per ounce in Q2. The Porgera mine produced 0.12 million ounces at total cash costs of $617 per ounce. The region remains on track with its original production guidance of 1.85-2.00 million ounces of gold at total cash costs of $600-$625 per ounce.

Attributable production from African Barrick Gold plc in Q2 was 0.13 million ounces at total cash costs of $609 per ounce(7). Barrick's share of full year production is now expected to decrease to 0.60-0.64 million ounces at higher total cash costs of $560-$600 per ounce as the Buzwagi mine continues to work through lower grade transition ore. Plant availability in the quarter was also impacted by a series of power outages and equipment issues which are being addressed. Production at Buzwagi is expected to increase in the second half of the year as primary sulfide ore becomes available for processing.

Q2 copper production was 102 million pounds at total cash costs of $1.12 per pound and the Company remains on track with its full year copper production guidance of 340-365 million pounds at total cash costs of $1.10-$1.20 per pound.

Utilizing option collar strategies, we have put in place floor protection on approximately 75% of our expected copper production for the remainder of 2010 at an average price of $2.16 per pound and can participate in copper price upside on approximately 100% of our expected remaining 2010 copper production to a maximum average price of $3.69 per pound. We have also hedged approximately 35% of our expected 2011 production through the use of collars with an average floor price of $3.00 per pound and an average ceiling price of $4.18 per pound.

Barrick's production base is underpinned by the industry's largest, fully unhedged gold reserves of 139.8 million ounces, plus measured and indicated gold resources of 61.8 million ounces and inferred gold resources of 31.6 million ounces(8).

PROJECTS UPDATE

The Pueblo Viejo project in the Dominican Republic is advancing in line with its $3.0 billion capital budget (100% basis) and initial production continues to be anticipated in the fourth quarter of 2011. At the end of the second quarter, overall construction was more than 25% complete, approximately 70% of the capital had been committed and engineering and procurement by major EPCM contractors was about 95% complete. About 92,000 cubic meters of concrete or about 60% of the total have been poured and 5,000 tons of steel, representing about 30% of the total, have been erected. Two of the autoclaves are in country, one of which is expected to arrive on site imminently, and all four mills have been installed on their footings. Work continues toward achieving key milestones including the connection of power to the site, which is necessary to commence commissioning activities in the second half of 2011. The terms for $1.035 billion (100% basis) in non-recourse project financing for the project were finalized during the quarter and approximately $780 million (100% basis) has been received in the first draw on this financing. Barrick's 60% share of annual gold production in the first full five years of operation is expected to average 625,000-675,000 ounces at total cash costs of $250-$275 per ounce(9).

At the Pascua-Lama project on the border of Chile and Argentina, detailed engineering and procurement is nearing completion and the project is on track to enter production in the first quarter of 2013. Major items that have been purchased or are subject to firm pricing include the mining equipment fleet, autogenous grinding (AG) and ball mills, the overland conveyor, and the primary and pebble crushers. The project remains in line with its pre-production capital budget of $2.8-$3.0 billion with over one-third of the capital committed. In Chile, the Barriales camp is essentially complete and substantial progress has been made on the Los Amarillos camp in Argentina. Construction of the Punta Colorada road is progressing well and earthworks have commenced with about 3.0 million tons moved to date. Average annual gold production is expected to be 750,000-800,000 ounces in the first full five years of operation at total cash costs of $20-$50 per ounce(10) assuming a silver price of $12 per ounce. For every $1 per ounce increase in the silver price, total cash costs are expected to decrease by about $35 per ounce over this period.

At the Cerro Casale project in Chile, the review of any additional permitting requirements before considering a construction decision is progressing. Engineering contractors have been selected and basic engineering has commenced. Pre-production capital is expected to be about $4.2 billion (100% basis) and Barrick's 75% share of average annual production is anticipated to be about 750,000-825,000 ounces of gold and 170-190 million pounds of copper in the first five full years of operation at total cash costs of about $240-$260 per ounce(11) assuming a copper price of $2.50 per pound. A $0.25 per pound change in the copper price would result in an approximate $50 per ounce impact on the expected total cash costs per ounce over this period.

At the 50% owned Donlin Creek project, further optimization studies are underway, primarily focused on the potential to utilize natural gas to reduce operating costs. Following completion of a scoping study for the natural gas option, in April 2010, the Board of Donlin Creek LLC approved a supplemental budget to proceed with revisions to the feasibility study to include the natural gas option. The feasibility study revisions are expected to be completed in the second quarter of 2011.

At the Reko Diq project, in which Barrick owns a 37.5% interest, the initial mine development feasibility study together with an environmental and social impact assessment are being finalized. The feasibility study indicates pre-production capital of approximately $3.3 billion (100% basis) based on a 120,000 ton per day processing plant, which is capable of future expansions. Barrick's share of average annual production for the first five full years of operation is expected to be about 100,000 ounces of gold at total cash costs of $420-$450 per ounce and 150-160 million pounds of copper at total cash costs of $1.00-$1.10 per pound(12). Discussions with the Governments of Pakistan and Balochistan continue on such matters as investment protection, the outcome of which will inform the next steps taken by Barrick to advance the project.

FINANCIAL POSITION

At June 30, 2010, Barrick had the gold industry's only 'A' credit rating, a cash balance of $3.9 billion and a $1.5 billion undrawn credit facility. The Company generated over $1 billion in operating cash flow during the quarter and $2.1 billion in operating cash flow in the first half of 2010. With the Company's strong financial position and its positive outlook on the gold price, Barrick's Board of Directors has authorized a quarterly dividend of 12 cents per share, which represents a 20% increase from the previous dividend. The quarterly dividend is to be paid on September 15, 2010 to shareholders of record as of the close of business on August 31, 2010. The Company expects to move from a semi-annual dividend to a quarterly dividend going forward(13).

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, total cash costs per ounce, net cash costs per ounce, realized price, cash margins and net cash margins per ounce are non-GAAP financial measures. See pages 38-44 of Barrick's Second Quarter Report.

(2) Based on an expected realized copper price of $3.00 per pound for full year 2010.

(3) Barrick has a 60% share in the Pueblo Viejo project.

(4) 2.4 million ounces of production is based on the estimated cumulative average annual production in the first full 5 years once all are at full capacity, with the Cortez Complex including Pipeline.

(5) Calculated based on converting previous semi-annual dividend of $0.20 per share to a quarterly equivalent.

(6) Based on an increase in the gold price assumption to $1,150 per ounce from $1,050 per ounce.

(7) US GAAP basis. ABG reports under an IFRS basis.

(8) Calculated as at December 31, 2009 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, Cerro Casale is classified as mineralized material. For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 23-33 of Barrick's 2009 Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

(9) Based on gold price and oil price assumptions of $950 per ounce and $75 per barrel, respectively.

(10) Total cash costs are calculated net of silver credits assuming silver, gold, and oil prices of $12 per ounce, $950 per ounce, $75 per barrel, respectively.

(11) Based on gold price, copper price, and oil price assumptions of $950 per ounce, $2.50 per pound and $75 per barrel, respectively, and assuming a Chilean peso foreign exchange rate of 525:1.

(12) Based on copper and gold price assumptions of $2.20 per pound and $925 per ounce, respectively.

(13) The declaration and payment of dividends remains at the discretion of the Board of Directors and will depend on the Company's financial results, cash requirements, future prospects and other factors deemed relevant by the Board.

Key Statistics

Barrick Gold Corporation   Three months ended   Six months Ended
(in United States dollars)       June 30,       June 30,
(Unaudited)   2010   2009   2010   2009
                         
Operating Results                        
Gold production (thousands of ounces)(1)     1,944     1,866     4,005     3,621
Gold sold (thousands of ounces)(1)     1,912     1,882     3,965     3,596
                           
Per ounce data                        
  Average spot gold price   $ 1,197   $ 922   $ 1,152   $ 915
  Average realized gold price(2)   $ 1,205   $ 931   $ 1,158   $ 923
  Net cash costs(5)     358     360     346     378
  Total cash costs(3)     457     452     446     467
  Amortization and other(4)     132     116     127     114
  Total production costs     589     568     573     581
  Copper credits     99     92     100     89
                           
Copper production (millions of pounds)     102     96     202     191
Copper sold (millions of pounds)     105     90     198     176
                           
Per pound data                        
  Average spot copper price   $ 3.18   $ 2.12   $ 3.23   $ 1.83
  Average realized copper price(2)   $ 2.93   $ 3.18   $ 3.10   $ 3.09
  Total cash costs(3)     1.12     1.25     1.09     1.28
  Amortization and other(4)     0.21     0.21     0.21     0.23
  Total production costs     1.33     1.46     1.30     1.51
                           
Financial Results (millions)                        
Sales   $ 2,642   $ 1,965   $ 5,203   $ 3,740
Net income     783     492     1,541     863
Adjusted net income(6)     759     431     1,500     732
Operating cash flow     1,019     718     2,070     1,067
                           
Per Share Data (dollars)                        
  Net income (basic)     0.79     0.56     1.56     0.99
  Adjusted net income (basic)(6)     0.77     0.49     1.52     0.84
  Net income (diluted)     0.79     0.56     1.55     0.98
                           
Weighted average basic common shares (millions)     985     873     985     873
Weighted average diluted common shares (millions)(7)     997     885     997     885
                           
                    As at     As at
                    June 30,     December 31,
                    2010     2009
                           
Financial Position (millions)                        
Cash and equivalents               $ 3,851   $ 2,564
Non-cash working capital                 615     655
Adjusted debt(8)                 7,337     6,919
Net debt(9)                 3,696     4,355
Equity                 18,111     15,547

(1) Production includes equity gold ounces in Highland Gold.

(2) Realized price is a non-GAAP financial performance measure with no standard meaning under US GAAP. See page 43 of the Company's MD&A.

(3) Total cash costs is a non-GAAP financial performance measure with no standard meaning under US GAAP. See page 40 of the Company's MD&A.

(4) Represents equity amortization expense, unrealized losses on non-hedge currency and commodity contracts and inventory purchase accounting adjustments at the Company's producing mines, divided by equity ounces of gold sold or pounds of copper sold.

(5) Net cash costs is a non-GAAP financial performance measure with no standard meaning under US GAAP. See page 40 of the Company's MD&A.

(6) Adjusted net income is a non-GAAP financial performance measure with no standard meaning under US GAAP. See page 38 of the Company's MD&A.

(7) Fully diluted, includes dilutive effect of stock options and convertible debt.

(8) Adjusted debt is a non-GAAP financial performance measure with no standard meaning under US GAAP. See page 44 of the Company's MD&A.

(9) Net debt is a non-GAAP financial performance measure with no standard meaning under US GAAP. See page 42 of the Company's MD&A.

Production and Cost Summary

  Gold Production (attributable ounces) (000's)   Total Cash Costs (US$/oz)
  Three months ended   Six months ended   Three months ended   Six months ended
  June 30,   June 30,   June 30,   June 30,
(Unaudited) 2010 2009   2010   2009   2010   2009   2010   2009
North America(1) 755 765   1,484   1,501   $ 506   $ 484   $ 513   $ 491
South America 566 442   1,225   838     233     277     215     283
Australia Pacific 482 488   971   977     622     552     599     580
African Barrick Gold(4) 132 163   309   290     609     539     613     549
Other 9 8   16   15     494     494     494     494
Total 1,944 1,866   4,005   3,621   $ 457   $ 452   $ 446   $ 467
                                     
  Copper Production (attributable pounds) (Millions)     Total Cash Costs (US$/lb)
  Three months ended   Six months ended     Three months ended     Six months ended
  June 30,   June 30,     June 30,     June 30,
(Unaudited) 2010 2009   2010   2009     2010     2009     2010     2009
South America 78 75   158   151   $ 1.06   $ 1.27   $ 1.06   $ 1.29
Australia Pacific 24 21   44   40     1.31     1.13     1.20     1.27
Total 102 96   202   191   $ 1.12   $ 1.25   $ 1.09   $ 1.28
                             
          Total Gold Production Costs (US$/oz)
          Three months ended     Six months ended
          June 30,     June 30,
(Unaudited)         2010     2009     2010     2009
 Direct mining costs at market foreign exchange rates       $ 440   $ 408   $ 432   $ 410
 (Gains) losses realized on currency hedge and commodity hedge/economic hedge contracts         (7)     17     (10)     30
 Adjustments to direct mining costs(3)         (5)     (1)     (5)     -
By-product credits         (15)     (8)     (14)     (8)
Copper credits         (99)     (92)     (100)     (89)
Cash operating costs, net basis         314     324     303     343
 Royalties         34     30     33     29
 Production taxes         10     6     10     6
Net cash costs(2)         358     360     346     378
Copper credits         99     92     100     89
Total cash costs(2)         457     452     446     467
 Amortization         127     115     122     114
 Adjustments to direct mining costs(3)         5     1     5     -
Total production costs       $ 589   $ 568   $ 573   $ 581
                             
          Total Copper Production Costs (US$/lb)
          Three months ended     Six months ended
          June 30,     June 30,
(Unaudited)         2010     2009     2010     2009
 Cash operating costs       $ 1.10   $ 1.24   $ 1.07   $ 1.28
 Royalties         0.02     0.01     0.02     -
Total cash costs(2)         1.12     1.25     1.09     1.28
 Amortization         0.21     0.21     0.21     0.23
Total production costs       $ 1.33   $ 1.46   $ 1.30   $ 1.51

(1) Production includes an additional 50% interest in Hemlo from January 1, 2009 onwards and Barrick's share of total cash costs increased to 100% effective May 1, 2009.

(2) Total cash costs and net cash costs are non-GAAP financial performance measures with no standard meaning under US GAAP. See page 40 of the Company's MD&A.

(3) Represents unrealized losses on non-hedge currency and commodity contracts and the impact of Barrick Energy.

(4) Figures relating to African Barrick Gold are stated at 100% up to March 31, 2010 and 73.9% thereafter.

Consolidated Statements of Income

Barrick Gold Corporation Three months ended     Six months ended  
(in millions of United States dollars, except per share data) (Unaudited) June 30,     June 30,  
  2010     2009     2010     2009  
                               
Sales (notes 4 and 5) $ 2,642     $ 1,965     $ 5,203     $ 3,740  
Costs and expenses                              
Cost of sales (notes 4 and 6)(1)   1,035       949       2,052       1,877  
Amortization and accretion (notes 4 and 14B)   316       265       611       520  
Corporate administration   45       45       77       80  
Exploration (note 7)   44       35       76       65  
Project development expense (note 7)   32       14       52       38  
Other expense (note 8A)   161       62       263       130  
Impairment charges (note 8B)   7       -       7       -  
    1,640       1,370       3,138       2,710  
Interest income   2       2       6       5  
Interest expense (note 15B)   (38 )     (14 )     (73 )     (16 )
Other income (note 8C)   7       96       40       96  
Write-down of investments (note 8B)   -       -       -       (1 )
    (29 )     84       (27 )     84  
Income from continuing operations before income taxes and other items   973       679       2,038       1,114  
Income tax expense (note 9)   (208 )     (189 )     (530 )     (226 )
Loss from equity investees (note 12)   (9 )     (20 )     (29 )     (48 )
Income from continuing operations before non-controlling interests   756       470       1,479       840  
Income from discontinued operations   36       22       71       25  
Income before non-controlling interests   792       492       1,550       865  
Non-controlling interests (note 20)   (9 )     -       (9 )     (2 )
Net income $ 783     $ 492     $ 1,541     $ 863  
Earnings per share data (note 10)                              
Income from continuing operations                              
  Basic $ 0.76     $ 0.54     $ 1.49     $ 0.96  
  Diluted $ 0.75     $ 0.53     $ 1.48     $ 0.95  
Income from discontinued operations                              
  Basic $ 0.03     $ 0.02     $ 0.07     $ 0.03  
  Diluted $ 0.04     $ 0.03     $ 0.07     $ 0.03  
Net income                              
  Basic $ 0.79     $ 0.56     $ 1.56     $ 0.99  
  Diluted $ 0.79     $ 0.56     $ 1.55     $ 0.98  

(1) Exclusive of amortization.

The notes to these unaudited interim consolidated financial statements, which are contained in the Second Quarter Report 2010 available on our website, are an integral part of these consolidated financial statements.

Consolidated Statements of Cash Flow

Barrick Gold Corporation Three months ended     Six months ended  
(in millions of United States dollars) (Unaudited)       June 30           June 30  
  2010     2009     2010     2009  
OPERATING ACTIVITIES                              
Net income $ 783     $ 492     $ 1,541     $ 863  
Amortization and accretion (notes 4 and 14B)   316       265       611       520  
Impairment charges and write-down of investments (note 8B)   7       -       7       1  
Income tax expense (note 9)   208       189       530       226  
Income taxes paid   (244 )     (120 )     (345 )     (220 )
Net proceeds tax   (1 )     (5 )     (73 )     (23 )
Increase in inventory   (93 )     (84 )     (143 )     (160 )
Gain on sale/acquisition of long-lived assets (note 8C)   -       (80 )     (33 )     (82 )
Income from discontinued operations   (36 )     (22 )     (71 )     (25 )
Operating cash flows of discontinued operations   (1 )     4       (4 )     7  
Other items (note 11A)   80       79       50       (40 )
Net cash provided by operating activities   1,019       718       2,070       1,067  
INVESTING ACTIVITIES                              
Property, plant and equipment                              
  Capital expenditures (note 4)   (762 )     (602 )     (1,392 )     (1,068 )
  Sales proceeds   3       4       8       7  
Acquisitions (note 3)   (305 )     (48 )     (752 )     (48 )
Investments                              
  Purchases   (1 )     -       (2 )     (2 )
Increase in restricted cash   -       113       -       113  
Investing cash flows of discontinued operations   -       (3 )     -       (7 )
Other investing activities (note 11B)   (14 )     (17 )     (32 )     (34 )
Net cash used in investing activities   (1,079 )     (553 )     (2,170 )     (1,039 )
FINANCING ACTIVITIES                              
Capital stock                              
  Proceeds on exercise of stock options   26       11       31       21  
Proceeds from public issuance of common shares by a subsidiary (note 3E)   50       -       884       -  
Long-term debt                              
  Proceeds   782       62       782       867  
  Repayments   (69 )     (206 )     (75 )     (293 )
Dividends   (197 )     (174 )     (197 )     (174 )
Funding (to) from non-controlling interests   (110 )     60       (16 )     146  
Financing cash flows of discontinued operations   -       -       -       -  
Other financing activities (note 11C)   (32 )     (4 )     (18 )     (11 )
Net cash provided by (used in) financing activities   450       (251 )     1,391       556  
Effect of exchange rate changes on cash and equivalents   (7 )     20       (4 )     17  
Net increase in cash and equivalents   383       (66 )     1,287       601  
Cash and equivalents at beginning of period (note 15A)   3,468       2,104       2,564       1,437  
Cash and equivalents at end of period (note 15A) $ 3,851     $ 2,038     $ 3,851     $ 2,038  

The notes to these unaudited interim consolidated financial statements, which are contained in the Second Quarter Report 2010 available on our website, are an integral part of these consolidated financial statements.

Consolidated Balance Sheets

Barrick Gold Corporation          
(in millions of United States dollars) (Unaudited) As at June 30,     As at December 31,  
  2010     2009  
ASSETS              
Current assets              
  Cash and equivalents (note 15A) $ 3,851     $ 2,564  
  Accounts receivable   256       251  
  Inventories (note 13)   1,671       1,540  
  Other current assets   482       524  
  Assets of discontinued operations   36       59  
    6,296       4,938  
Non-current assets              
  Equity in investees (note 12A)   278       1,136  
  Other investments (note 12B)   85       92  
  Property, plant and equipment (note 14)   16,025       13,125  
  Goodwill   5,285       5,197  
  Intangible assets   134       66  
  Deferred income tax assets   898       949  
  Other assets   1,543       1,531  
  Assets of discontinued operations   41       41  
Total assets $ 30,585     $ 27,075  
LIABILITIES AND EQUITY              
Current liabilities              
  Accounts payable   1,285       1,221  
  Short-term debt   17       54  
  Other current liabilities   525       475  
  Liabilities of discontinued operations   20       23  
    1,847       1,773  
Non-current liabilities              
  Long-term debt (note 15B)   7,021       6,281  
  Asset retirement obligations   1,166       1,122  
  Deferred income tax liabilities   1,190       1,184  
  Other liabilities (note 17)   1,227       1,145  
  Liabilities of discontinued operations   23       23  
Total liabilities   12,474       11,528  
Equity              
  Capital stock (note 18)   17,427       17,390  
  Additional paid-in capital   239       -  
  Deficit   (1,038 )     (2,382 )
  Accumulated other comprehensive income (loss) (note 19)   (94 )     55  
Total shareholders' equity   16,534       15,063  
  Non-controlling interests (note 20)   1,577       484  
Total equity   18,111       15,547  
Contingencies and commitments (notes 14 and 21)              
Total liabilities and equity $ 30,585     $ 27,075  
               

The notes to these unaudited interim consolidated financial statements, which are contained in the Second Quarter Report 2010 available on our website, are an integral part of these consolidated financial statements.

Consolidated Statements of Equity

Barrick Gold Corporation  
For the six months ended June 30 (in millions of United States dollars) (Unaudited)  
            2010     2009  
Common shares (number in thousands)                            
At January 1                 984,328       872,739  
  Issued on exercise of stock options                 1,183       711  
  Issued on redemption of exchangeable shares (note 18B)                 -       267  
At June 30                 985,511       873,717  
Common shares                            
At January 1               $ 17,390     $ 13,372  
  Issued on exercise of stock options                 31       21  
  Recognition of stock option expense                 6       10  
At June 30                 17,427       13,403  
Additional paid-in capital                            
At January 1                 -       -  
 Recognized on initial public offering of African Barrick Gold (note 3E)             239       -  
At June 30                 239       -  
Retained earnings (deficit)                            
At January 1                 (2,382 )     2,261  
  Net income                 1,541       863  
  Dividends                 (197 )     (174 )
At June 30                 (1,038 )     2,950  
Accumulated other comprehensive loss (note 19)                 (94 )     (96 )
Total shareholders' equity                 16,534       16,257  
Non-controlling interests (note 20)                            
At January 1                 484       182  
  Net income attributable to non-controlling interests                 9       (2 )
  Funding (to) from non-controlling interests                 (16 )     146  
  Other increase in non-controlling interests                 1,100       -  
At June 30                 1,577       326  
Total equity at June 30               $ 18,111     $ 16,583  
                             

Consolidated Statements of Comprehensive Income

 
                             
Barrick Gold Corporation   Three months ended     Six months ended  
(in millions of United States dollars) (Unaudited)   June 30,     June 30,  
    2010       2009     2010       2009  
Net income $ 783     $ 492   $ 1,541     $ 863  
Other comprehensive income (loss), net of tax (note 19)   (228 )     372     (149 )     260  
Comprehensive income $ 555     $ 864   $ 1,392     $ 1,123  

The notes to these unaudited interim consolidated financial statements, which are contained in the Second Quarter Report 2010 available on our website, are an integral part of these consolidated financial statements.

 

CORPORATE OFFICE
Barrick Gold Corporation
Brookfield Place, TD Canada Trust Tower
Suite 3700
161 Bay Street, P.O. Box 212
Toronto, Canada M5J 2S1
Tel: (416) 861-9911 Fax: (416) 861-0727
Toll-free throughout North America: 1-800-720-7415
Email: investor@barrick.com
Website: www.barrick.com

SHARES LISTED
ABX - The New York Stock Exchange
The Toronto Stock Exchange

TRANSFER AGENTS AND REGISTRARS
CIBC Mellon Trust Company
P.O. Box 7010, Adelaide Street Postal Station
Toronto, Canada M5C 2W9
Tel: (416) 643-5500
Toll-free throughout North America: 1-800-387-0825
Fax: (416) 643-5501
Email: inquiries@cibcmellon.com
Website: www.cibcmellon.com

BNY MELLON SHAREOWNER SERVICES
480 Washington Blvd. – 27th Floor
Jersey City, NJ 07310
Tel: 1-800-589-9836 Fax: (201) 680-4665
Email: shrrelations@mellon.com
Website: www.melloninvestor.com

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

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this Second Quarter Report 2010, including any information as to our strategy, projects, 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: the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; 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; 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 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; changes in costs and estimates associated with our projects; 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. Certain of 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.

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Gold  $ 1,254.33 +0.58 +0.05% Volume: December 14, 2017
ABX NYSE  $ 14.17 +0.06 +0.42% Volume: 10,953,284 December 14, 2017
ABX TSX  $ 18.06 -0.07 -0.39% Volume: 2,743,504 December 14, 2017
Gold  $ 1,254.33 +0.58 +0.05% Volume: December 14, 2017

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

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