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Barrick Reports Q2 2011 Financial and Operating Results

July 28, 2011

SECOND QUARTER REPORT 2011
Based on IFRS and expressed in US dollars
July 28, 2011

For a full explanation of results, the Financial Statements and Management Discussion & Analysis, please see the Company's website, www.barrick.com.

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Highlights

Financial and Operating Results

  • Reported net earnings for Q2 rose 35% to $1.2 billion ($1.16 per share) from $859 million in the prior year period. Q2 adjusted net earnings increased 36% to a record $1.1 billion ($1.12 per share)(1) from $824 million ($0.84 per share) in Q2 2010, reflecting higher realized gold and copper prices and higher gold sales volumes, resulting in an annualized return on equity of about 21%(1).
  • Q2 EBITDA increased 40% to $2.1 billion(1) from $1.5 billion in the same prior year period. Q2 operating cash flow of $690 million and adjusted operating cash flow of $938 million(1), respectively, were lower than the prior year operating cash flow of $1,108 million and adjusted operating cash flow of $1,127 million, respectively. This reduction was primarily as a result of higher income tax payments of $736 million, of which about $420 million was due to final 2010 income tax payments in a number of jurisdictions. Income tax payments are expected to be about $400 million per quarter in the subsequent quarters of 2011.
  • Q2 gold production was 1.98 million ounces at total cash costs of $445 per ounce and net cash costs of $338 per ounce(1). The Company is on track to meet its 2011 operating guidance of 7.6-8.0 million ounces at total cash costs of $450-$480 per ounce and lower expected net cash costs of $290-$320 per ounce(2) compared to previous guidance of $340- $380 per ounce. Including Lumwana, Barrick expects to produce 455-475 million pounds of copper in 2011 at total cash costs of $1.55-$1.70 per pound.
  • Gold and copper cash margins expanded significantly in the second quarter, highlighting Barrick's leverage to higher metal prices. Gold cash margins increased 33% to $1,068 per ounce(1) from $804 per ounce in Q2 2010 and net cash margins rose 30% to $1,175 per ounce(1)from $903 per ounce in the prior year period. Copper cash margins rose 39% to $2.51 per pound(1) from $1.80 per pound in the prior year period.


Increasing Gold and Copper Reserves through Exploration and Selective Acquisitions

  • Major exploration programs are advancing at Cortez, Turquoise Ridge, Ruby Hill , and Spring Valley in North America, on early stage targets in the El Indio belt in South America, and at Porgera and on regional targets in the Australia Pacific region.
  • Barrick completed the acquisition of Equinox Minerals in July, adding two quality copper mines and increasing our leverage to strong copper prices while maintaining our gold exposure. Low cost financing has been secured and will enhance the returns from the acquisition. The Company is focused on three areas to realize the full potential of the Lumwana mine, which is located in one of the world's most prolific copper regions in Zambia: operational improvements and efficiencies, a focus on exploration to expand the resource, and an ongoing evaluation to determine the optimal scope of an expansion.


Investing in and Developing High Return Projects

  • The mining industry is facing global cost trends which reflect a substantially higher commodity price environment, stronger local currencies, tighter labor markets and higher inflation in some regions compared to several years ago when many projects were at the feasibility stage. For Barrick, stronger metal prices have significantly improved project economics and overall rates of return despite higher estimated capital costs.
  • At Pueblo Viejo, a major rainfall event that occurred in May requires remediation of the starter tailings dam and new permits for this facility. Primarily as a result of the unanticipated remediation work and impact to the schedule, mine construction capital for the project has increased to $3.6-$3.8 billion (100% basis) or $2.2-$2.3 billion (Barrick's 60% share) and first production is now expected to occur in mid-2012 subject to the receipt of these permits. As part of a longer- term, optimized power solution for Pueblo Viejo, the Company is advancing a plan to build a dual-fueled power plant at an estimated incremental capital cost of about $0.3 billion (100% basis). The new plant is expected to provide lower cost, long term power to the project.
  • Capital costs for Pascua-Lama have been impacted by continued inflationary effects on costs for key consumable inputs and labor, re- estimations of materials such as steel, cement, fuel and equipment and increased expenditures to essentially maintain the schedule to deliver first production in mid-2013. As a result, pre-production capital is now estimated at $4.7-$5.0 billion.
  • Pueblo Viejo and Pascua-Lama are anticipated to contribute 1.4-1.5 million ounces of average annual production over the first full five years of operation and to lower Barrick's overall total cash costs by about 20%(3). At current metal prices, these two projects are expected to generate combined average annual EBITDA of about $2.8 billion(4) to Barrick over the same period, with an average investment to EBITDA ratio of about 2.5 times.

 

FINANCIAL AND OPERATING RESULTS

Q2 production was 1.98 million ounces of gold at total cash costs of $445 per ounce and net cash costs of $338 per ounce. The Company is on track to achieve its full year operating guidance of 7.6-8.0 million ounces at total cash costs of $450-$480 per ounce and significantly lower expected net cash costs of $290-$320 per ounce compared to previous guidance of $340-$380 per ounce, positioning Barrick as one of the lowest cost senior gold producers. Q2 gold cash margins increased 33% to $1,068 per ounce from $804 per ounce in Q2 2010 and net cash margins increased 30% to $1,175 per ounce from $903 per ounce in the same prior year period. Second quarter copper cash margins increased 39% to $2.51 per pound from $1.80 per pound in the prior year period on higher copper prices. This margin expansion demonstrates the Company's exceptional leverage to higher metal prices.

Q2 adjusted net earnings rose 36% to a record $1.1 billion ($1.12 per share) compared to adjusted net earnings of $824 million ($0.84 per share) in the prior year period, reflecting higher realized prices for both gold and copper and higher gold sales volumes. Q2 adjusted net earnings translate to an annualized return on equity of about 21%. Q2 reported net earnings were $1.2 billion ($1.16 per share) before net adjustments of $42 million. Q2 EBITDA increased 40% to $2.1 billion from $1.5 billion in the same prior year period. Q2 operating cash flow of $690 million and adjusted operating cash flow of $938 million (which adjusts for the one-time operating cash flow impacts related to the Equinox acquisition) compares to operating cash flow of $1,108 million and adjusted operating cash flow of $1,127 million in the same prior year period, respectively. Operating cash flow and adjusted operating cash flow were negatively impacted by an increase in income tax payments, primarily due to final 2010 income tax payments in Argentina, Australia and Chile. Income tax payments totaled $736 million in the second quarter of 2011, of which about $420 million related to 2010 tax payments in the above jurisdictions compared to $245 million in the same prior year period. Based on current gold and copper prices, we expect income tax payments to be about $400 million per quarter for the remainder of 2011. In addition, we expect to make an intercompany dividend withholding tax payment of about $85 million in the third quarter.

"Operationally and financially, Barrick had a solid quarter, meeting our operating and cash cost targets which resulted in significant margin expansion and record financial results," said Aaron Regent, Barrick's President and CEO. "We also completed the acquisition and long term financing of Equinox which adds two attractive assets to our portfolio and another source of long term cash flow. Our project pipeline continues to progress with the ongoing construction of Pueblo Viejo and Pascua-Lama and while we are disappointed with the increased capital costs of these projects, their overall economics have improved significantly as a result of much higher gold and silver prices than originally forecasted."

The North America region continued to perform ahead of expectations in Q2, producing 0.92 million ounces at total cash costs of $404 per ounce, primarily due to strong performances from Cortez and Goldstrike. Cortez production of 0.42 million ounces at total cash costs of $220 per ounce in Q2 reflects the ramp up of leach pad production, increased mill throughput from de-bottlenecking and the processing of refractory ore at Goldstrike's facilities.

The Goldstrike operation exceeded plan in Q2, producing 0.30 million ounces at total cash costs of $511 per ounce on better than expected grades and more ore than anticipated from the open pit, which is anticipated to transition to a higher stripping phase in the second half of the year. Full year 2011 production for the North America region is expected to be 3.30-3.46 million ounces at total cash costs of $425-$450 per ounce.

The South American business unit produced 0.45 million ounces at total cash costs of $373 per ounce in Q2. The Lagunas Norte mine outperformed expectations, producing 0.18 million ounces at total cash costs of $267 per ounce on positive grade reconciliations. Veladero contributed 0.24 million ounces at total cash costs of $364 per ounce in Q2 and is on track to produce nearly 1.0 million ounces this year. In 2011, South America is expected to contribute 1.80-1.935 million ounces at total cash costs of $350-$380 per ounce.

The Australia Pacific business unit produced 0.46 million ounces at total cash costs of $611 per ounce in Q2. The Porgera mine, which produced 0.12 million ounces at total cash costs of $569 per ounce, was impacted by lower underground and open pit production as well as power outages and unplanned maintenance which affected mill throughput. Australia Pacific is expected to produce 1.85-2.00 million ounces at total cash costs of $610-$635 per ounce in 2011.

Attributable production from African Barrick Gold plc in Q2 was 0.13 million ounces at total cash costs of $652 per ounce. Barrick's share of 2011 production is expected to be 0.515-0.560 million ounces at total cash costs of $590-$650 per ounce.

Q2 copper production of 93 million pounds at total cash costs of $1.56 per pound included one month of production from the Lumwana mine in June. Utilizing option collar strategies, the Company has put in place floor protection on approximately 45% of its expected remaining copper production for 2011 at an average floor price of $3.27 per pound and can participate in upside up to an average ceiling price of about $4.85 per pound on approximately 55% of expected remaining 2011 production(5). Barrick also has floor protection in place on approximately 45% of expected copper production for 2012 at an average floor price of about $3.75 per pound and can participate in upside up to an average ceiling price of about $5.50 per pound(6) on approximately 40% of expected 2012 production. The Company's remaining copper production is subject to market prices. Following Barrick's acquisition of Equinox Minerals, the Company expects to produce 455-475 million pounds of copper in 2011 at total cash costs of $1.55-$1.70 per pound.

About 60% of Barrick's consolidated production costs are denominated in US dollars. The Company's largest single currency exposure is the Australian dollar/US dollar exchange rate. Barrick is 92% hedged on its expected remaining Australian operating and capital expenditures in 2011 at an effective average rate of $0.76 and has substantial coverage for the following three years at rates at or below $0.75.

The Company has also mitigated the impact of higher oil prices through the use of financial contracts and production from Barrick Energy such that a $10 change in WTI crude oil prices is only expected to impact 2011 total cash costs by about $1 per ounce. The Barrick Energy contribution, along with the financial contracts, provides hedge protection for approximately 85% of expected remaining 2011 fuel consumption. Beyond 2011, financial contracts provide substantial hedge coverage in 2012 and 2013 and production from Barrick Energy is expected to continue to provide long term natural offsets to expected energy costs.

INCREASING GOLD AND COPPER RESERVES THROUGH EXPLORATION AND SELECTIVE ACQUISITIONS

Barrick completed the acquisition of Equinox Minerals in July and is in the process of integrating the Lumwana mine and Jabal Sayid project into the Australia Pacific regional business unit. This transaction has added two quality copper mines to our portfolio and improves our copper leverage while maintaining our exposure to gold. Low cost financing has been secured and will further enhance returns from the acquisition. The Equinox transaction was a unique opportunity to acquire a large, producing asset in an environment of strong copper fundamentals. The Lumwana mine is a high quality, long-life mine with significant expansion and resource growth potential and provides us with a major presence in Zambia, one of the most prospective copper regions in the world.

The Company is focused on three areas to realize the full potential of Lumwana and maximize long term cash flows: operational improvements and efficiencies, a focus on exploration to materially expand the resource and an ongoing evaluation to determine the optimal size of the expansion.

Lumwana is expected to produce 155-175 million pounds at total cash costs of $1.75-$1.95 per pound from June 1 to the end of 2011. On a full year annualized basis, production is expected to be about 300 million pounds beyond 2011 prior to a potential expansion. Cash costs for 2011 have been impacted by plant availability and lower grades related to dilution, as well as higher costs related to currency, labor and power. Areas of expected operating improvements include mill de-bottlenecking, pit re-optimization, changes to mine sequencing, dilution control, and benefits from higher equipment availability and leveraging Barrick's supply chain agreements. An infill drill program at the producing Malundwe deposit is underway to improve dilution control and more accurately model orebody characteristics.

Lumwana has excellent potential for both brownfield and greenfield resource growth. Barrick expects to spend over $50 million in 2011 as part of an 18 month exploration program to increase the measured and indicated resource as part of the expansion study which is expected to be completed in the second half of 2012. As a result, the Company's total exploration budget for 2011 will increase to $370-$390 million(7), of which approximately 40% will be capitalized. A minimum of 16 drill rigs are planned to be added in Zambia, primarily at the development stage Chimiwungo deposit, to convert mineralized inventory and inferred resources to the measured and indicated category, conduct extensional drilling, infill drill two potential starter pits and evaluate the potential for a third starter pit. Malundwe is open to the north and south and Chimiwungo remains open in multiple directions. Recent condemnation drilling west of the current optimized Chimiwungo pit shell is intersecting typical "Chimi-style" mineralization. Wide spaced drilling is planned for the recent Mutoma discovery as well as drilling to test advanced sediment-hosted copper-gold targets elsewhere on the Lumwana Mining Lease and on other exploration properties in Zambia including the copper belt. In addition, Barrick is advancing an expansion study that could potentially double processing rates in conjunction with the exploration program to better determine the optimal scope of the operation.

The Jabal Sayid copper project in Saudi Arabia is expected to enter production in the second half of 2012 at a total capital cost of approximately $400 million, of which $275 million remains to be spent. The mine is expected to produce 100-130 million pounds annually over its first full five years. Good potential exists for material extensions to known deposits and new discoveries from an ongoing evaluation of the entire Jabal Sayid site. Current exploration is focused on testing Lode 4 at depth, where mineralization has been intersected in several previous drill holes, including an intercept of 111 meters at 2.67% copper. Several geophysical surveys are also in progress.

INVESTING IN AND DEVELOPING HIGH RETURN PROJECTS IN CONSTRUCTION

Barrick has targeted growth in production to 9 million ounces of gold(8) within the next five years. Total cash costs are expected to benefit from its large, low cost projects, primarily Pueblo Viejo and Pascua-Lama, as these mines come on stream. Once at full capacity, these two mines are expected to contribute about 1.4-1.5 million ounces of average annual production over the first full five years of operation and are expected to lower Barrick's overall total cash costs by about 20%. At current metal prices, these two projects are anticipated to generate combined average annual EBITDA of about $2.8 billion to Barrick over the same period.

"The mining industry has been impacted by global cost trends which are a product of a higher commodity price environment, stronger local currencies, tighter labor markets and higher inflation," said Peter Kinver , Executive Vice-President and Chief Operating Officer. "While Barrick has not been immune to these trends, the higher metal prices have significantly improved the economics and overall rates of return for these projects despite the higher than previously estimated capital costs."

At the Pueblo Viejo project in the Dominican Republic, overall construction is now more than 70% complete. A major rainfall event that occurred in May requires remediation of damage to the partially constructed starter tailings dam facility and as a result, first production is now anticipated in mid-2012, subject to the receipt of new tailings permit approvals. The unanticipated remediation work and impact on the schedule has resulted in mine construction capital increasing to $3.6-$3.8 billion (100%)(9), or $2.2-$2.3 billion (Barrick's 60% share) of which about 75% had been committed at the end of the second quarter. Barrick's 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 $275-$300 per ounce(9). At the current gold price of about $1,600 per ounce, Pueblo Viejo is expected to contribute approximately $900 million of average annual EBITDA to Barrick over this period, representing an investment to EBITDA ratio of about 2.5 times.

At the end of the second quarter, three of the four autoclaves had been brick-lined and the remaining autoclave is more than 70% complete. About 90% of the planned concrete has been poured, approximately 90% of the steel has been erected and more than 4.8 million tonnes of ore have been stockpiled. Work continues toward achieving key milestones including the connection of power to the site. As part of a longer-term, optimized power solution for Pueblo Viejo, the Company is advancing a plan to build a dual-fueled power plant at an estimated incremental capital cost of about $300 million (100% basis) or $180 million (Barrick's share) that would commence operations utilizing heavy fuel oil (HFO) power but have the ability to subsequently convert to cheaper liquid natural gas (LNG). The new plant is expected to provide lower cost, long term power to the project.

Since February 2011, Barrick has reorganized its Capital Projects group, increasing the involvement and co-ordination of its Regional Business Units in the construction of major projects to assist in operational readiness and to capture regional synergies. As a result, personnel changes were made at the Pascua-Lama project. In connection with these changes, a detailed review of the underlying assumptions and trending analysis for Pascua-Lama was completed in the second quarter. This review coincided with the review of the capital costs of Cerro Casale, where additional data and information applicable to Pascua-Lama was identified. The Company has concluded that, based on current trends, certain earlier estimates and assumptions are not achievable, including those for productivity rates and inflationary effects on costs, as well as for required quantities of certain construction materials such as steel and cement. In addition, the Company has increased its projected expenditures to essentially maintain the schedule for bringing the project into production in mid-2013. As a result, pre-production capital is now estimated at $4.7-$5.0 billion(10). Included in this estimate is a contingency of $350-$650 million which is about 15%-25% of the remaining uncommitted expenditure of about $2.5 billion. Barrick has engaged an independent, globally recognized engineering consultant who has reviewed the robustness of our processes and methodology in deriving this updated capital estimate. Approximately 40% of the capital had been committed at the end of the second quarter for items including structural steel, the mining fleet, autogenous and ball mills, the overland conveyor and the primary and pebble crushers.

Since the 2009 feasibility study (which estimated pre-production capital at $2.8-$3.0 billion), costs for key consumables have increased materially. Since the beginning of 2009, steel prices are up about 100%, oil prices have increased about 120% and copper prices are up more than 200%. Projects in Chile and Argentina are also being adversely affected by the continued increase in demand for project resources due to the large number of projects that are in construction or at the feasibility stage. High inflation rates of over 25% in Argentina, as well as the earthquake in Chile, have resulted in significantly higher labor costs and a tight labor market, and a stronger Chilean peso has negatively impacted cost estimates. These inflationary pressures represent approximately 50% of the increased estimated capital expenditures over the 2009 study.

Based on construction experience to date, we have re-estimated quantities of material required for such items as steel, cement, fuel and equipment, which represents approximately 35% of the increased estimated capital expenditures over the 2009 study.

Given lower than expected productivity levels, the Company has increased expenditures to essentially maintain the schedule for the project in order to deliver first production in mid-2013, including expanded camp facilities and the higher costs associated with winter construction. These increased expenditures represent approximately 15% of the increased estimated capital expenditures over the 2009 study.

Pascua-Lama is a high quality, world class resource. Expected average annual gold production for Pascua-Lama has increased to 800,000-850,000 ounces in the first full five years of operation at negative total cash costs of $225-$275 per ounce(10) assuming a silver price of $25 per ounce. Average annual silver production for the first full five years is expected to be about 35 million ounces. 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 current commodity prices of $1,600 per ounce gold and $40 per ounce silver, Pascua-Lama is expected to generate approximately $1.9 billion of average annual EBITDA in its first full five years of operation. At today's prices, this represents an investment to EBITDA ratio of about 2.6 times.

At the end of the second quarter, engineering design was about 90% complete. In Chile, earthworks were more than 80% complete, the truck shop platform was completed and work advanced on road construction to the Pascua pit. In Argentina, platforms for the conveyor portal, coarse ore stockpile, pebble crusher and Merrill Crowe facility were completed. Occupancy and expansion of the construction camps in Chile and Argentina continues to ramp up with more than 2,300 housed on site and a further 2,800 expected by the end of the year. Preparations are underway to commence pre-strip mining in Q4 2011 and development of the tunnel connecting the mine in Chile and the processing plant in Argentina is progressing on both sides.

PROJECTS IN FEASIBILITY

A capital review has been completed for the Cerro Casale project in Chile that incorporates design changes resulting from advanced engineering and a review of recent industry projects, and which has resulted in a more robust and lower risk technical design. Estimated pre-production capital of about $6.0 billion (100% basis)(11), which includes a higher contingency of about $0.9 billion, has been impacted by inflationary effects on costs for key consumable inputs and labor, re-estimations of required quantities of construction materials, increased costs related to productivity, and higher expenditures for expanded temporary camps and other facilities. The revised estimate is based on updated commodity price assumptions and also reflects the impact of a stronger Chilean peso and tight labor markets in Chile. The feasibility study was based on 2009 prices, exchange rates and labor conditions.

Inflationary and other impacts on labor and consumables such as steel and cement, which have increased costs for structural work, represent approximately 25% of the increased estimated capital expenditures over the 2009 study. Based on a review of recent industry projects, we have re-estimated costs for items such as mechanical and electrical work and quantities of other materials, which accounts for approximately 20% of the increased estimated capital expenditures. We have also increased projected expenditures related to lower than anticipated productivity based on construction experience to date at Pascua-Lama and these higher expenditures represent approximately 20% of the increased estimated capital expenditures. In connection with the current labor environment, we have expanded the temporary camps and facilities, which accounts for approximately 10% of the increased estimated capital expenditures. A provision for a higher contingency represents approximately 25% of the increase.

Barrick is evaluating several options to further optimize the project and the potential for higher grade satellite starter pits. Exploration programs will continue in parallel with advancing detailed engineering and permitting. The Environmental Impact Assessment is expected to be submitted shortly and the permitting process is anticipated to be about 18 months, at which time Barrick would consider a construction decision. Discussions with the government and meetings with local communities and indigenous groups are continuing in parallel with these activities. Barrick's 75% share of average annual production is anticipated to be about 750,000-825,000 ounces of gold and 190-210 million pounds of copper in the first full five years of operation at lower total cash costs than previously estimated of about $125-$175 per ounce(11).

At the 50%-owned Donlin Gold project in Alaska, feasibility study revisions that include updated costs and the utilization of natural gas are expected to be completed and submitted to the Board of Donlin Gold LLC in the second half of 2011.

At the Reko Diq copper-gold project in which Barrick holds a 37.5% interest, the Supreme Court of Pakistan has ruled that the provincial government of Balochistan has the authority to decide to grant a mining license to the project company, Tethyan Copper. Efforts to secure the mining license and associated Project and Mineral Agreements are expected to continue in the second half of 2011.

A peer review of the draft Social, Environmental Impact Assessment (SEIA) report for the 50%-owned Kabanga project in Tanzania was completed during the quarter and is expected to be finalized along with the feasibility study in the second half of 2011. Focus will shift in the approval phase to gaining the required Tanzanian regulatory approvals and negotiating an acceptable Mineral Development Agreement with the Tanzanian government.

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 earnings, adjusted operating cash flow, EBITDA, return on equity, total cash costs, net cash costs, cash margins and net cash margins per ounce/pound are non-GAAP financial measures. See pages 54-60 of Barrick's Second Quarter 2011 Report.

(2) Based on an expected realized copper price of $4.00/lb for the balance of 2011 compared to the prior expected realized copper price of $3.75/lb and reflecting expected 2011 production of 455-475 million pounds compared to previous guidance of about 300 million pounds.

(3) Based on the estimated combined average annual production in the first full five years of operation and on gold, silver and oil price assumptions of $1,300/oz, $25/oz and $100/bbl, respectively.

(4) EBITDA is based on the midpoint of average annual production and average total cash costs in the first full five years of operation assuming a $1,600/oz gold price, a $40/oz silver price and a $100/bbl oil price.

(5) The realized price for remaining 2011 production is expected to be reduced by $0.06 per pound as a result of the net premium paid on hedging strategies.

(6) The realized price on 2012 production is expected to be reduced by $0.12 per pound as a result of the net premium paid on hedging strategies.

(7) Barrick's exploration programs are designed and conducted under the supervision of Robert Krcmarov, Senior 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.

(8) The target of 9 Moz of annual production within five years reflects a current assessment of the expected production and timeline to complete and commission Barrick's projects currently in construction (Pueblo Viejo and Pascua-Lama) and the Company's current assessment of existing mine site opportunities, some of which are sensitive to metal price and various capital and input cost assumptions.

(9) Based on gold and oil price assumptions of $1,300/oz and $100/bbl, respectively.

(10) Based on gold, silver and oil price assumptions of $1,300/oz, $25/oz, and $100/bbl respectively and assuming a Chilean peso f/x rate of 475:1.

(11) Based on gold, copper and oil price assumptions of $1,300/oz, $3.00/lb and $100/bbl respectively and assuming a Chilean peso f/x rate of 475:1.

 

Key Statistics

Barrick Gold Corporation          Three months ended        Six months ended
(in United States dollars)                  June 30,                June 30,
                               ---------------------------------------------
(Unaudited)                        2011         2010       2011         2010
----------------------------------------------------------------------------
Operating Results
Gold production (thousands of
 ounces)(1)                       1,977        1,944      3,934        4,005
Gold sold (thousands of ounces)   1,915        1,903      3,778        3,962
Per ounce data
 Average spot gold price        $ 1,506 $      1,197 $    1,445 $      1,152
 Average realized gold price(2)   1,513        1,205      1,452        1,158
 Net cash costs(2)                  338          302        323          297
 Total cash costs(2)                445          401        441          397
 Depreciation(3)                    152          142        147          137
 Other(4)                            17            6         16            5
 Total production costs             614          549        604          539
 Copper credits                     107           99        118          100
Copper production (millions of
 pounds)(5)                          93          102        168          202
Copper sold (millions of
 pounds)                             82          105        162          198
Per pound data
 Average spot copper price      $  4.14 $       3.18 $     4.26 $       3.23
 Average realized copper
  price(2)                         4.07         2.93       4.16         3.10
 Total cash costs(2)               1.56         1.13       1.41         1.09
 Depreciation(3)                   0.26         0.21       0.25         0.21
 Total production costs            1.82         1.34       1.66         1.30
----------------------------------------------------------------------------
Financial Results (millions)
Revenues                        $ 3,426 $      2,621 $    6,516 $      5,202
Net earnings(6)                   1,159          859      2,160        1,679
Adjusted net earnings(2)          1,117          824      2,121        1,587
EBITDA(2)                         2,090        1,489      3,918        3,082
Operating cash flow                 690        1,108      2,125        2,238
Adjusted operating cash flow(2)     938        1,127      2,377        2,278
Per Share Data (dollars)
 Net earnings (basic)              1.16         0.87       2.16         1.70
 Adjusted net earnings
  (basic)(2)                       1.12         0.84       2.12         1.61
 Net earnings (diluted)            1.16         0.86       2.16         1.69
Weighted average basic common
 shares (millions)                  999          985        999          985
Weighted average diluted common
 shares (millions)(7)             1,001          997      1,001          997
----------------------------------------------------------------------------
                                                          As at        As at
                                                       June 30, December 31,
                                                    ------------------------
                                                           2011         2010
----------------------------------------------------------------------------
Financial Position (millions)
Cash and equivalents                                 $    2,863 $      3,968
Non-cash working capital                                  1,924        1,696
Adjusted debt(2)                                         13,018        6,392
Net debt(2)                                              10,161        2,427
Average shareholders' equity                             20,525       17,352
Return on equity(2)                                         21%          20%
----------------------------------------------------------------------------
(1) Production includes our equity share of gold production at Highland
    Gold.
(2) Realized price, net cash costs, total cash costs, adjusted net earnings,
    EBITDA, adjusted operating cash flow, adjusted debt, net debt and return
    on equity are non-GAAP financial performance measures with no standard
    definition under IFRS. See pages 54 - 60 of the Company's MD&A.
(3) Represents equity amortization expense divided by equity ounces of gold
    sold or pounds of copper sold.
(4) Represents the impact of Barrick Energy and realized gains and losses on
    non-hedge commodity contracts at the Company's producing mines, divided
    by equity ounces of gold sold or pounds of copper sold.
(5) Production includes one month's production from the newly acquired
    Lumwana mine.
(6) Net earnings represents net income attributable to the equity holders of
    the Company.
(7) Fully diluted includes dilutive effect of stock options and convertible
    debt.

 

Production and Cost Summary

                              Gold Production
                        (attributable ounces)
                                      (000's)        Total Cash Costs ($/oz)
                    ------------------------- ------------------------------
                    Three months   Six months    Three months     Six months
                           ended        ended           ended          ended
                        June 30,     June 30,        June 30,       June 30,
                    ------------ ------------ --------------- --------------
(Unaudited)           2011  2010   2011  2010    2011    2010    2011   2010
-------------------------------- ------------ --------------- --------------
 North America         923   755  1,785 1,484 $   404 $   438 $   400 $  447
 South America         453   566    951 1,225     373     204     358    190
 Australia Pacific     463   482    922   971     611     560     597    557
 African Barrick
  Gold(3)              127   132    256   309     652     543     655    528
 Other                  11     9     20    16     475     494     475    494
----------------------------------------------------------------------------
Total                1,977 1,944  3,934 4,005 $   445 $   401 $   441 $  397
----------------------------------------------------------------------------

                            Copper Production
                        (attributable pounds)
                                   (Millions)        Total Cash Costs ($/lb)
                    ------------------------- ------------------------------
                    Three months   Six months    Three months     Six months
                           ended        ended           ended          ended
                        June 30,     June 30,        June 30,       June 30,
                    ------------ ------------ --------------- --------------
(Unaudited)           2011  2010   2011  2010    2011    2010    2011   2010
-------------------------------- ------------ --------------- --------------
South America           69    78    144   158    1.45 $  1.07 $  1.33 $ 1.06
Australia
 Pacific/Zambia(4)      24    24     24    44    1.97    1.31    1.90   1.20
----------------------------------------------------------------------------
Total                   93   102    168   202 $  1.56 $  1.13 $  1.41 $ 1.09
----------------------------------------------------------------------------

                                                 Total Gold Production Costs
                                                                      ($/oz)
                                              ------------------------------
                                                 Three months     Six months
                                                        ended          ended
                                                     June 30,       June 30,
                                              --------------- --------------
(Unaudited)                                      2011    2010    2011   2010
------------------------------------------------------------- --------------
Direct mining costs at market
 foreign exchange rates                       $   501 $   396 $   489 $  395
Gains realized on currency hedge and
 commodity hedge/economic hedge contracts        (57)     (8)    (51)   (10)
Adjustments to direct
 mining costs(2)                                 (17)     (6)    (16)    (5)
 By-product credits                              (19)    (14)    (18)   (16)
 Copper credits                                 (107)    (99)   (118)  (100)
----------------------------------------------------------------------------
Cash operating costs, net
 basis                                            301     269     286    264
 Royalties                                         37      33      37     33
----------------------------------------------------------------------------
Net cash costs(1)                                 338     302     323    297
 Copper credits                                   107      99     118    100
----------------------------------------------------------------------------
Total cash costs(1)                               445     401     441    397
 Depreciation                                     152     142     147    137
 Adjustments to direct
  mining costs(2)                                  17       6      16      5
----------------------------------------------------------------------------
Total production
 costs                                        $   614 $   549 $   604 $  539
----------------------------------------------------------------------------

                                               Total Copper Production Costs
                                                                      ($/lb)
                                              ------------------------------
                                                 Three months     Six months
                                                        ended          ended
                                                     June 30,       June 30,
                                              --------------- --------------
(Unaudited)                                      2011    2010    2011   2010
------------------------------------------------------------- --------------
Cash operating costs                          $  1.53 $  1.11 $  1.39 $ 1.07
 Royalties                                       0.03    0.02    0.02   0.02
----------------------------------------------------------------------------
Total cash costs(1)                              1.56    1.13    1.41   1.09
 Depreciation                                    0.26    0.21    0.25   0.21
----------------------------------------------------------------------------
Total production
 costs                                        $  1.82 $  1.34 $  1.66 $ 1.30
----------------------------------------------------------------------------
(1) Total cash costs and net cash costs are non-GAAP financial performance
    measures with no standard meaning under IFRS. See page 56 of the
    Company's MD&A.
(2) Represents realized gains and losses on non-hedge currency and commodity
    contracts and the impact of Barrick Energy's net contribution.
(3) Figures relating to African Barrick Gold are presented on a 100% basis
    up to March 31, 2010 and a 73.9% basis thereafter, which reflects our
    equity share of production.
(4) Production includes one month's production from the newly acquired
    Lumwana mine.


 

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,
----------------------------------------------------------------------------
                                      2011       2010       2011       2010
----------------------------------------------------------------------------

Revenue (notes 5 and 6)          $   3,426  $   2,621  $   6,516  $   5,202
----------------------------------------------------------------------------
Costs and expenses
Cost of sales (notes 5 and 7)        1,496      1,262      2,853      2,530
Corporate administration                38         45         80         78
Exploration and evaluation (note
 8)                                     89         56        154        100
Other expense (note 10A)               127        159        256        234
Impairment charges (reversals)
 (note 10B)                              4         11          4        (24)
----------------------------------------------------------------------------
                                     1,754      1,533      3,347      2,918
Other income (note 10C)                 91         13        162         57
Income (loss) from equity
 investees (note 14)                     4         (9)         5        (24)
Gain (loss) on non-hedge
 derivatives (note 18E)                  7         61        (24)        88
----------------------------------------------------------------------------
Income before finance items and
 income taxes                        1,774      1,153      3,312      2,405
Finance items (note 11)
Finance income                           4          2          7          6
Finance costs                          (48)       (47)       (80)      (113)
----------------------------------------------------------------------------
Income before income taxes           1,730      1,108      3,239      2,298
Income tax expense (note 12)          (550)      (271)    (1,044)      (676)
----------------------------------------------------------------------------
Income from continuing
 operations                          1,180        837      2,195      1,622
Income from discontinued
 operations (note 4G)                    -         36          -         71
----------------------------------------------------------------------------
Net income                       $   1,180  $     873  $   2,195  $   1,693
----------------------------------------------------------------------------
Attributable to:
Equity holders of Barrick Gold
 Corporation                     $   1,159  $     859  $   2,160  $   1,679
Non-controlling interests (note
 22)                             $      21  $      14  $      35  $      14
----------------------------------------------------------------------------

Earnings per share data attributable to the equity
 holders of Barrick Gold Corporation (note 9)
Income from continuing
 operations
 Basic                           $    1.16  $    0.84  $    2.16  $    1.63
 Diluted                         $    1.16  $    0.83  $    2.16  $    1.61
----------------------------------------------------------------------------
Income from discontinued
 operations
 Basic                           $       -  $    0.03  $       -  $    0.07
 Diluted                         $       -  $    0.03  $       -  $    0.08
----------------------------------------------------------------------------
Net income
 Basic                           $    1.16  $    0.87  $    2.16  $    1.70
 Diluted                         $    1.16  $    0.86  $    2.16  $    1.69
----------------------------------------------------------------------------
The notes to these unaudited interim consolidated financial statements,
which are contained in the Second Quarter Report 2011 available on our
website, are an integral part of these consolidated financial statements.


 

Consolidated Statements of Comprehensive Income

Barrick Gold Corporation
(in millions of United States      Three months ended      Six months ended
 dollars) (Unaudited)                        June 30,               June 30,
----------------------------------------------------------------------------
                                      2011       2010       2011       2010
----------------------------------------------------------------------------
Net income                       $   1,180  $     873  $   2,195  $   1,693
Other comprehensive income, net
 of taxes
Unrealized gains (losses) on
 available-for-sale ("AFS")
 financial securities, net of tax
 $1, $nil, $3, $1                       (5)         -          5         (2)
Realized (gains) losses and
 impairments (recoveries) on AFS
 financial securities, net of tax
 $5, $nil, $5, $nil                    (44)         -        (44)         -
Unrealized gains (losses) on
 derivatives designated as cash
 flow hedges, net of tax $18,
 $69, $13, $41                         185       (232)       327       (142)
Realized gains on derivatives
 designated as cash flow hedges,
 net of tax $30, $2, $46, $10         (103)        (6)      (176)       (36)
Currency translation adjustments,
 net of tax $nil, $nil, $nil,
 $nil                                    5        (19)        33        (13)
----------------------------------------------------------------------------
Total other comprehensive income        38       (257)       145       (193)
----------------------------------------------------------------------------
Total comprehensive income       $   1,218  $     616  $   2,340  $   1,500
----------------------------------------------------------------------------
Attributable to:
Equity holders of Barrick Gold
 Corporation                     $   1,197  $     602  $   2,305  $   1,486
Non-controlling interests        $      21  $      14  $      35  $      14
----------------------------------------------------------------------------

The notes to these unaudited interim consolidated financial statements,
which are contained in the Second Quarter Report 2011 available on our
website, are an integral part of these consolidated financial statements.


 

Consolidated Statements of Cash Flow

Barrick Gold Corporation
(in millions of United
 States dollars)
 (Unaudited)          Three months ended June 30, Six months ended June 30,
----------------------------------------------------------------------------
                               2011          2010         2011         2010
----------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income            $       1,180 $         873 $      2,195 $      1,693
Adjusted for the
 following items:
 Depreciation                   337           314          641          620
 Accretion                       17             5           24           12
 Impairment charges
  (reversals) (note
  10B)                            4            11            4          (24)
 Income tax expense
  (note 12)                     550           271        1,044          676
 Increase in inventory         (200)          (83)        (256)        (132)
 (Gain) loss on non-
  hedge derivatives              (7)          (61)          24          (88)
 Gain on
  sale/acquisition of
  long-lived
  assets/investments            (86)           (4)        (156)         (50)
 Income from
  discontinued
  operations                      -           (36)           -          (71)
 Operating cash flows
  of discontinued
  operations                      -            (1)           -           (4)
 Other (note 13A)              (338)          137         (320)         135
----------------------------------------------------------------------------
Operating cash flows
 before interest and
 income taxes                 1,457         1,426        3,200        2,767
Net interest paid               (31)          (73)         (51)        (111)
Income taxes paid              (736)         (245)      (1,024)        (418)
----------------------------------------------------------------------------
Net cash provided by
 operating activities           690         1,108        2,125        2,238
----------------------------------------------------------------------------
INVESTING ACTIVITIES
Property, plant and
 equipment
  Capital expenditures
   (note 5)                  (1,068)         (851)      (2,139)      (1,560)
  Sales proceeds                  3             3           33            8
Acquisitions (note 4)        (7,315)         (305)      (7,340)        (752)
Investments
  Purchases                      (2)           (1)          (9)          (2)
  Sales                          51             -           71            -
Investing cash flows
 of discontinued
 operations                       -             -            -            -
Other investing
 activities (note 13B)          (63)          (14)         (73)         (32)
----------------------------------------------------------------------------
Net cash used in
 investing activities        (8,394)       (1,168)      (9,457)      (2,338)
----------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds on exercise
 of stock options                10            26           31           31
Proceeds from public
 issuance of common
 shares by a
 subsidiary (note 4E)             -            50            -          884
Long-term debt
  Proceeds                    6,500           782        6,659          782
  Repayments                   (347)          (69)        (349)         (75)
Dividends                      (120)         (197)        (240)        (197)
Funding from (to) non-
 controlling interests          122          (110)         179          (16)
Financing cash flows
 of discontinued
 operations                       -             -            -            -
Other financing
 activities (note 13C)          (50)          (32)         (65)         (18)
----------------------------------------------------------------------------
Net cash provided by
 financing activities         6,115           450        6,215        1,391
----------------------------------------------------------------------------
Effect of exchange
 rate changes on cash
 and equivalents                  9            (7)          12           (4)
----------------------------------------------------------------------------
Net increase
 (decrease) in cash
 and equivalents             (1,580)          383       (1,105)       1,287
Cash and equivalents
 at beginning of
 period (note 18A)            4,443         3,468        3,968        2,564
----------------------------------------------------------------------------
Cash and equivalents
 at end of period
 (note 18A)           $       2,863 $       3,851 $      2,863 $      3,851
----------------------------------------------------------------------------

The notes to these unaudited interim consolidated financial statements,
which are contained in the Second Quarter Report 2011 available on our
website, are an integral part of these consolidated financial statements.


 

Consolidated Balance Sheets

Barrick Gold Corporation
(in millions of United States             As at         As at         As at
 dollars) (Unaudited)                  June 30,  December 31,    January 1,
----------------------------------------------------------------------------
                                           2011          2010          2010
----------------------------------------------------------------------------
ASSETS
Current assets
 Cash and equivalents (note 18A)      $   2,863 $       3,968 $       2,564
 Accounts receivable                        447           370           259
 Inventories (note 15)                    2,141         1,798         1,488
 Other current assets                     1,119           935           518
----------------------------------------------------------------------------
Total current assets (excluding
 assets classified as held for sale)      6,570         7,071         4,829
 Assets classified as held for sale           -             -           100
----------------------------------------------------------------------------
Total current assets                      6,570         7,071         4,929

Non-current assets
 Equity in investees (note 14)              424           396         1,124
 Other investments                          169           171            62
 Property, plant and equipment (note
  16)                                    25,645        17,890        13,378
 Goodwill (note 17)                       9,580         6,096         5,197
 Intangible assets                          498           475           275
 Deferred income tax assets                 552           625           601
 Other assets                             2,070         1,913         1,358
----------------------------------------------------------------------------
Total assets                          $  45,508 $      34,637 $      26,924
----------------------------------------------------------------------------
LIABILITIES AND EQUITY
Current liabilities
 Accounts payable                         2,043         1,511         1,221
 Debt                                       130            14            54
 Current income tax liabilities             427           550           104
 Other current liabilities                  329           416           366
----------------------------------------------------------------------------
Total current liabilities (excluding
 liabilities classified as held for
 sale)                                    2,929         2,491         1,745
 Liabilities classified as held for
  sale                                        -             -            49
----------------------------------------------------------------------------
Total current liabilities                 2,929         2,491         1,794

Non-current liabilities
 Debt (note 18B)                         13,229         6,624         6,124
 Provisions (note 20)                     1,958         1,768         1,408
 Deferred income tax liabilities          3,364         1,971           960
 Other liabilities (note 19)                495           566           884
----------------------------------------------------------------------------
Total liabilities                        21,975        13,420        11,170
----------------------------------------------------------------------------
Equity
 Capital stock (note 21)                 17,861        17,820        17,392
 Retained earnings (deficit)              2,531           611        (2,535)
 Accumulated other comprehensive
  income                                    872           727           232
 Other                                      314           314           143
----------------------------------------------------------------------------
Total equity attributable to Barrick
 Gold Corporation shareholders           21,578        19,472        15,232
 Non-controlling interests (note 22)      1,955         1,745           522
----------------------------------------------------------------------------
Total equity                             23,533        21,217        15,754
----------------------------------------------------------------------------
Contingencies and commitments (note
 16 and 23)
----------------------------------------------------------------------------
Total liabilities and equity          $  45,508 $      34,637 $      26,924
----------------------------------------------------------------------------

The notes to these unaudited interim consolidated financial statements,
which are contained in the Second Quarter Report 2011 available on our
website, are an integral part of these consolidated financial statements.

 

Consolidated Statements of Changes in Equity

Barrick Gold Corporation       Attributable to equity holders of the company
----------------------------------------------------------------------------

                                                     Accumulated
(in millions of United                 Retained            other
 States dollars)            Capital    earnings    comprehensive
 (Unaudited)                  stock   (deficit)           income    Other(1)
----------------------------------------------------------------------------
At January 1, 2011      $    17,820 $       611   $          727 $       314
----------------------------------------------------------------------------
 Net income                       -       2,160                -           -
 Total other
  comprehensive income            -           -              145           -
----------------------------------------------------------------------------
 Total comprehensive
  income                          -       2,160              145           -
----------------------------------------------------------------------------
 Transactions with
  owners
  Dividends                       -        (240)               -           -
  Issued on exercise of
   stock options                 31           -                -           -
  Recognition of stock
   option expense                10           -                -           -
  Funding from (to) non-
   controlling interests          -           -                -           -
  Other decrease in non-
   controlling interests          -           -                -           -
----------------------------------------------------------------------------
 Total transactions with
  owners                         41        (240)               -           -
----------------------------------------------------------------------------
At June 30, 2011        $    17,861 $     2,531   $          872 $       314
----------------------------------------------------------------------------

At January 1, 2010      $    17,392 $    (2,535)  $          232 $       143
----------------------------------------------------------------------------
 Net income                       -       1,679                -           -
 Total other
  comprehensive income
  (loss)                          -           -             (193)          -
----------------------------------------------------------------------------
 Total comprehensive
  income (loss)                   -       1,679             (193)          -
----------------------------------------------------------------------------
 Transactions with
  owners
  Dividends                       -        (197)               -           -
  Issued on exercise of
   stock options                 31           -                -           -
  Recognition of stock
   option expense                 7           -                -           -
  Recognized on initial
   public offering of
   African Barrick Gold
   (note 4E)                      -           -                -         276
  Funding from (to) non-
   controlling interests          -           -                -           -
  Other increase in non-
   controlling interests          -           -                -           -
----------------------------------------------------------------------------
 Total transactions with
  owners                         38        (197)               -         276
----------------------------------------------------------------------------
At June 30, 2010        $    17,430 $    (1,053)  $           39 $       419
----------------------------------------------------------------------------

Barrick Gold Corporation       Attributable to equity holders of the company
----------------------------------------------------------------------------

(in millions of United      Total equity
 States dollars)         attributable to  Non-controlling
 (Unaudited)                shareholders        interests     Total equity
---------------------------------------------------------------------------
At January 1, 2011      $         19,472 $          1,745 $         21,217
---------------------------------------------------------------------------
 Net income                        2,160               35            2,195
 Total other
 comprehensive income                145                -              145
---------------------------------------------------------------------------
 Total comprehensive
 income                            2,305               35            2,340
---------------------------------------------------------------------------
 Transactions with
 owners
  Dividends                         (240)               -             (240)
  Issued on exercise of
   stock options                      31                -               31
  Recognition of stock
   option expense                     10                -               10
  Funding from (to) non-
   controlling interests               -              179              179
  Other decrease in non-
   controlling interests               -               (4)              (4)
---------------------------------------------------------------------------
 Total transactions with
  owners                            (199)             175              (24)
---------------------------------------------------------------------------
At June 30, 2011        $         21,578 $          1,955 $         23,533
---------------------------------------------------------------------------

At January 1, 2010      $         15,232 $            522 $         15,754
---------------------------------------------------------------------------
 Net income                        1,679               14            1,693
 Total other
  comprehensive income
  (loss)                            (193)               -             (193)
---------------------------------------------------------------------------
 Total comprehensive
  income (loss)                    1,486               14            1,500
---------------------------------------------------------------------------
 Transactions with
  owners
  Dividends                         (197)               -             (197)
  Issued on exercise of
   stock options                      31                -               31
  Recognition of stock
   option expense                      7                -                7
  Recognized on initial
   public offering of
   African Barrick Gold
   (note 4E)                         276                -              276
  Funding from (to) non-
   controlling interests               -              (16)             (16)
  Other increase in non-
   controlling interests               -            1,064            1,064
---------------------------------------------------------------------------
 Total transactions with
  owners                             117            1,048            1,165
---------------------------------------------------------------------------
At June 30, 2010        $         16,835 $          1,584 $         18,419
---------------------------------------------------------------------------
(1) Includes additional paid-in capital as at June 30, 2011: $276 million
    (December 31, 2010: $276 million; June 30, 2010: $276 million; January
    1, 2010: $ nil) and convertible borrowings - equity component as at
    June 30, 2011: $38 million (December 31, 2010: $38 million; June 30,
    2010: $143 million; January 1, 2010: $143 million).

The notes to these unaudited interim consolidated financial statements, which are contained in the Second Quarter Report 2011 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
 

TRANSFER AGENTS AND REGISTRARS
CIBC Mellon Trust Company(i)
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

(i)Effective November 2010, shareholder records are maintained by Canadian Stock Transfer ("CST") as administrative agent for CIBC Mellon Trusts Company.

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

 

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

 

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

MEDIA CONTACT:

Andy Lloyd
Senior Manager, Communications
(416) 307-7414
alloyd@barrick.com

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this Second Quarter Report 2011, 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; the ability of the Company to complete or successfully integrate an announced acquisition proposal; legislative, political or economic developments in the jurisdictions in which the Company carries on business, including Zambia and Saudi Arabia; 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 organization of our previously held African gold operations under a separate listed entity; 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.

World Gold Council MemberMember of ICMM

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