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Financial Review

Graham Shuttleworth

Annual Report 2024

Financial Review

Graham Shuttleworth
Senior Executive Vice-President, Chief Financial Officer

Barrick had an exceptional year in 2024 by most financial measures, increasing net earnings by 69% — the highest in a decade — increasing operating cash flow by 20% and doubling free cash flow relative to 2023.

Our strong asset portfolio, which includes six Tier One gold mines, enabled us to capitalize on record high gold prices with production being slightly lower than the prior year but within our guidance range. At the same time, the higher average copper price received also aided our profitability.

With the feasibility studies for Reko Diq and the Lumwana Super Pit Expansion completed, we are now entering an exciting growth phase with the payback periods on the projects becoming increasingly shorter at current commodity prices. These two projects will be significant value drivers for our company and are expected to increase our gold equivalent ounce production by 30% by the end of the decade, all backed by our existing reserves.

Strong operating cash flows and a robust balance sheet, with very low net debt and no major debt repayments until 2033, enable us to fund this growth while continuing to pay dividends and avoiding shareholder dilution. In addition, we are working with a consortium of multi-lateral lenders to raise up to $3 billion in limited recourse project financing for Phase 1 of the Reko Diq project. The involvement of these lending partners and the anticipated duration of this financing will significantly lower Barrick’s equity funding needs and act as an effective risk mitigation measure for this large-scale project.

5-Year GEO Production Forecast and Gold CostsGEO from copper assets are calculated using a gold price of $2,397/oz for 2024 and $1,400 for 2025 to 2029; and a copper price of $4.15/lb for 2024 and $3.00/lb for 2025 to 2029. Copper produced at Reko Diq is included in GEOs. Costs are incorporating impact of royalties assuming a gold price of $2,400/oz and a copper price of $4.00/lb from 2025 onwards. Production for Loulo-Gounkoto is presented separately in 2025 in line with guidance issued, but is included from 2026 onwards.

5-Year Copper Production Forecast and CostsCosts are incorporating impact of royalties assuming a copper price of $4.00/lb from 2025 onwards.

A stacked bar and line graph showing gold production and financial metrics from 2024-2029. The left y-axis (0-7,000) shows total capital expenditures in $ million with stacked bars representing regional gold production including North America (orange), Latin America and Asia Pacific (teal), Africa and Middle East (dark blue), Loulo-Gounkoto (striped), and Copper production, GEO* (brown). The right y-axis (0-1,800) tracks costs in $/oz with four trend lines showing Cost of sales (dark green), Total cash costs (light green), AISC (salmon pink), and Total gold capital (blue). The gold production remains relatively stable across regions while copper production increases notably in 2028-2029. The cost metrics show a general downward trend, particularly for Total gold capital which decreases sharply from 2027-2029.
A combined stacked bar and line graph showing copper production and financial metrics from 2024-2029. The left y-axis (0-500) shows copper production in kilotonnes (kt) with stacked bars representing four mining operations: Lumwana (teal), Zaldivar (dark blue), Reko Diq (orange), and Jabal Sayid (brown). The right y-axis (0-3.5) tracks copper metrics with four trend lines: Cost of sales (dark green), Total cash costs (light green), AISC (All-In Sustaining Costs, in salmon pink), and Total capital expenditures (blue) measured in $/lb and $ billion. Copper production shows steady growth from around 200kt in 2024 to 470kt in 2029, with Lumwana contributing the largest portion. The cost metrics generally show declining trends from 2024-2029, with Total capital peaking in 2027 before declining sharply through 2029.

Shareholder returns continue to be a focus area for Barrick and over the past three years, we have returned $3.5 billion to shareholders through dividends and share buybacks, which has reduced our outstanding share count by 52 million shares, or 3%.

Share buybacks will continue to be a key element of our capital allocation strategy with Barrick’s Board having authorized a further $1 billion buyback program for 2025. This will give us the opportunity to strategically purchase our shares when we believe Barrick’s true value is not being reflected in the share price, while at the same time balancing the capital needs of the group as we embark on this growth phase.

Managing inflationary cost pressures to ensure we can deliver expanding margins remains a focus for our supply chain teams. Through a combination of renegotiation, supplier rotation and leveraging our buying power, we have been able to get our input pricing for a large portion of the key consumables we purchase back to 2021 levels, as well as strengthening our relationships with our key long-term suppliers.

Our supply chain strategy also integrates our broader sustainability goals — we aim to ensure that our operations positively impact the countries and communities in which we function and foster the growth of local suppliers so they can thrive in the global marketplace. This local procurement strategy not only enhances our alignment with stakeholders but also serves as a crucial component of our risk management framework for the regions where we operate.

We have also been managing our spend outside of our operations, including closure liabilities, exploration activities and administrative expenses. Relative to 2018 and inclusive of the acquired properties, we have reduced our closure liabilities by $1.5 billion or almost 40% through the continuous review, optimization and completion of closure projects. We aim to maintain our spend on greenfield exploration at around the same level each year as it creates significant value over the longer term, but we force our exploration teams to compete for these dollars to ensure they pursue the most prospective opportunities in the portfolio.

Barrick remains the leader in general and administrative cost efficiency among its peers, through our flat management structure, initiatives to simplify the corporate structure and cost discipline. When measured as a percentage of consolidated revenue, operating cash flow or dollars per attributable gold equivalent ounce, we have consistently managed to keep corporate costs well below our peer group.

In an increasingly complex geopolitical environment, our commitment to partnering with host communities remains a cornerstone of our business model. Proactively identifying and managing risk is essential to maintaining a safe and sustainable operation, ensuring both value protection and creation.

This disciplined approach has been integral to our growth initiatives. With robust oversight and stringent project controls, we are committed to deploying shareholder capital efficiently, supporting our growth phase and positioning the company for strong returns as these projects transition into production.

Graham Shuttleworth
Senior Executive Vice-President, Chief Financial Officer

Annual Report 2024

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