April 23, 2018 - 5:01 PM EDT
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Barrick Reports First Quarter 2018 Results
  • Barrick reported first quarter net earnings attributable to equity holders ("net earnings") of $158 million ($0.14 per share), and adjusted net earnings1 of $170 million ($0.15 per share).
  • The Company reported first quarter revenues of $1.79 billion, net cash provided by operating activities ("operating cash flow") of $507 million, and free cash flow2 of $181 million.
  • Gold production in the first quarter was 1.05 million ounces, at a cost of sales applicable to gold3 of $878 per ounce, all-in sustaining costs4 of $804 per ounce, and cash costs4 of $573 per ounce.
  • Copper production was 85 million pounds, at a cost of sales applicable to copper3 of $2.07 per pound, all-in sustaining costs5 of $2.61 per pound, and C1 cash costs5 of $1.88 per pound.
  • We continue to expect full-year gold production of 4.5-5.0 million ounces, at a cost of sales3 of $810-$850 per ounce, all-in sustaining costs4 of $765-$815 per ounce, and cash costs4 of $540-$575 per ounce.
  • Full-year copper production guidance remains 385-450 million pounds, at a cost of sales3 of $1.80-$2.10 per pound, all-in sustaining costs5 of $2.30-$2.60 per pound, and C1 cash costs5 of $1.55-$1.75 per pound.
  • During the first quarter, S&P Global Ratings and Moody's Investors Service upgraded Barrick's credit rating, citing significant improvements in free cash flow generation and liquidity, supported by the Company's low-cost portfolio and favorable geopolitical risk profile.
  • The Company does not intend to sell additional assets for purposes of debt reduction, and will use cash on hand and cash flow from operations for future debt repayments. Proceeds from any future portfolio optimization will be used to enhance our project pipeline, or returned to shareholders.
  • Nevada growth projects remain on schedule and within budget. The Fourmile exploration program in the Cortez district is progressing well, with encouraging initial assay results.

All amounts expressed in U.S. dollars unless otherwise indicated

TORONTO, April 23, 2018 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:ABX) (TSX:ABX) ("Barrick" or the "Company") today reported first quarter results for the period ending March 31, 2018. Gold production and costs for the quarter were in line with expectations, with higher production and lower costs expected in the second half of 2018 driven by the timing of capital expenditures, higher throughput, and improved grades. Despite lower production levels, adjusted net earnings, operating cash flow, and free cash flow all increased compared to the prior-year period, primarily driven by higher gold prices.

Our priorities for 2018 are focused on positioning Barrick to grow free cash flow per share over the long term from a portfolio of high-quality, long-life gold assets in the Americas, with an increasing focus on organic growth in Nevada and the Dominican Republic. At our existing operations, our goal is to maintain industry-leading margins through a continuous cycle of optimization, pushing our mines to achieve greater levels of safety, efficiency, and productivity, while working to mitigate increasing costs associated with more complex ore types and a shift to more underground mining. In addition, we are making investments in digital technology and innovation that will allow us to identify and accelerate further operational improvements across our portfolio.

OUTLOOK

We continue to expect full-year gold production of 4.5-5.0 million ounces, at a cost of sales3 of $810-$850 per ounce, and all-in sustaining costs4 of $765-$815 per ounce. As previously reported, the power plant that supplies electricity to the Porgera Joint Venture mine was damaged during an earthquake that struck Papua New Guinea on February 26, 2018. The mine's processing plant is currently operating at approximately 25 percent capacity, supported by an existing on-site diesel power station, as well as portable generators. At this time, the operation expects to increase processing capacity in stages, with full capacity anticipated by the fourth quarter. While the impact of this event to production at Porgera remains under evaluation, the Company's consolidated 2018 gold production guidance remains unchanged. Business interruption insurance is expected to mitigate a significant portion of earnings lost as a result of this event.

We expect gold production in the second quarter to be roughly in line with the first quarter at around one million ounces, mainly due to the impact of a scheduled maintenance shutdown at the Barrick Nevada roaster.

Sustaining capital expenditures are expected to be higher in the second quarter relative to the first quarter as the North American construction season ramps up for major sustaining projects such as tailings dam raises. Capitalized stripping at Barrick Nevada, Pueblo Viejo, and Veladero, and increased underground development at Barrick Nevada, are also expected to be higher in the second quarter.

The completion of development work, stripping, and maintenance in the second quarter, along with access to higher grades in the second half of the year, is expected to drive stronger production in the third and fourth quarters, at lower costs compared to the first half of 2018. In particular, we expect higher production from Barrick Nevada and Pueblo Viejo in the second half of the year, driven by higher grades and throughput.

We continue to expect full-year copper production of 385-450 million pounds, at a cost of sales3 of $1.80-$2.10 per pound, and all-in sustaining costs5 of $2.30-$2.60 per pound. Lower realized grades in the first quarter at the Lumwana mine are expected to steadily improve over the course of 2018.

Total attributable capital expenditure guidance6 for 2018 remains unchanged at $1.40-$1.60 billion, including mine site sustaining capital7 of $0.95-$1.10 billion, and project capital expenditures8 of $450-$550 million.

FINANCIAL HIGHLIGHTS

The Company reported net earnings of $158 million ($0.14 per share) for the first quarter, compared to net earnings of $679 million ($0.58 per share) in the prior-year period. Lower net earnings are primarily the result of a net impairment reversal of $1.13 billion ($522 million net of tax and non-controlling interest) recorded in the first quarter of 2017, in connection with our divestment of 25 percent of the Cerro Casale project (Norte Abierto). 

Adjusted net earnings1 for the first quarter rose by five percent to $170 million ($0.15 per share), compared to $162 million ($0.14 per share) in the first quarter of 2017. The increase in adjusted net earnings was primarily due to higher realized gold prices9 and lower depreciation.

Operating cash flow for the first quarter was $507 million, compared to $495 million in the prior-year period. Higher operating cash flow was driven by higher realized gold prices9, lower cash taxes and interest paid, and lower general and administrative expenses related to stock-based compensation compared to the first quarter of 2017.

Free cash flow2 for the first quarter was $181 million, compared to $161 million in the prior-year period, reflecting slightly higher operating cash flows, combined with slightly lower capital expenditures. In the first quarter of 2018, capital expenditures on a cash basis were $326 million, compared to $334 million in the prior-year period.

BALANCE SHEET UPDATE

Over the past three years, we have reduced our total debt by more than 50 percent, from $13.1 billion at the end of 2014, to $6.4 billion by the end of 2017. In the first quarter of 2018, both S&P Global Ratings and Moody's Investors Service upgraded Barrick's credit rating, citing significant improvements in free cash flow generation and liquidity, supported by the Company's low-cost portfolio and favorable geopolitical risk profile.

Our goal remains to reduce our total debt from $6.4 billion at present, to around $5 billion by the end of 2018. To achieve this, we will use cash flow from operations, and cash on hand. Having materially strengthened the balance sheet, Barrick does not intend to sell further assets for the purposes of debt repayment. Any proceeds resulting from additional portfolio optimization will be reinvested back into the business to enhance our project pipeline, or returned to shareholders.

At the end of the first quarter, Barrick had a consolidated cash balance of approximately $2.4 billion.10 The Company has less than $100 million in debt due before 2020.11 More than three-quarters of our outstanding total debt of $6.4 billion does not mature until after 2032.

OPERATING HIGHLIGHTS

Barrick produced 1.05 million ounces of gold in the first quarter of 2018 at a cost of sales3 of $878 per ounce, and all-in sustaining costs4 of $804 per ounce, in line with expectations. This compares to gold production of 1.31 million ounces in the first quarter of 2017, at a cost of sales3 of $833 per ounce, and all-in sustaining costs4 of $772 per ounce.

Lower gold production compared with the prior-year period was expected as a result of the sale of 50 percent of the Veladero mine on June 30, 2017, lower throughput at Acacia as a result of reduced operations at Bulyanhulu, lower grades processed through the oxide mill and roaster at Barrick Nevada, and lower throughput and grade at Hemlo and Lagunas Norte. An earthquake that damaged power infrastructure in Papua New Guinea also impacted production at Porgera during the quarter.

On a per ounce basis, cost of sales was five percent higher than the prior-year period due to the impact of fewer ounces sold, and higher royalty expenses as a result of an increase in realized gold prices.9 Cost of sales was also impacted by higher direct mining costs, primarily due to inflation in fuel, labor, and maintenance costs, partially offset by Best-in-Class operational and efficiency improvements. Higher all-in sustaining costs4 primarily reflect a planned increase in mine site sustaining capital expenditures on a per ounce basis, combined with higher direct mining costs.

The Company produced 85 million pounds of copper in the first quarter, at a cost of sales3 of $2.07 per pound, and all-in sustaining costs5 of $2.61 per pound. This compares to 95 million pounds, at a cost of sales of $1.73 per pound, and all-in sustaining costs5 of $2.19 per pound, in the first quarter of 2017.

Copper production for the first quarter of 2018 was 11 percent lower than the prior-year period, primarily due to lower production at Lumwana as a result of mill shutdowns and lower grades, and at Zaldívar due to fewer tonnes placed on the leach pad. This was partially offset by higher production at Jabal Sayid, driven by higher grade, throughput, and recoveries.

On a per pound basis, cost of sales applicable to copper3 increased as a result of higher processing and maintenance costs at Lumwana, and higher unit production costs at Zaldívar, partially offset by lower production costs at Jabal Sayid. Copper all-in sustaining costs5 were higher than the prior-year period, reflecting higher cost of sales combined with higher mine site sustaining capital expenditures at Zaldívar and Lumwana.

Please see page 41 of Barrick's first quarter MD&A for individual operating segment performance details. Detailed mine site guidance information can be found in Appendix 1 of this press release.

 
GoldFirst Quarter 2018 2018 Guidance
 Production12 (000s of ounces)1,049 4,500 - 5,000
 Cost of sales applicable to gold3 ($ per ounce)878 810 - 850
 Cash costs4 ($ per ounce)573 540 - 575
 All-in sustaining costs4 ($ per ounce)804 765 - 815
Copper  
 Production12 (millions of pounds)85 385 - 450
 Cost of sales applicable to copper3 ($ per pound)2.07 1.80 - 2.10
 C1 cash costs5 ($ per pound)1.88 1.55 - 1.75
 All-in sustaining costs5 ($ per pound)2.61 2.30 - 2.60
   
Total Attributable Capital Expenditures6 ($ millions)326 1,400 - 1,600


EXPLORATION AND GROWTH

Nevada remains the focus of our 2018 exploration programs and project development activities. Our strategy is focused on growing free cash flow from this core district over the long term through organic project development, growing our gold resource base through exploration, and optimizing the processing of existing stockpiles.

Nevada growth projects at Turquoise Ridge, Goldrush, and Cortez Deep South are now in execution, and are expected to begin contributing to production from 2021. Our mine exploration programs are focused on replacing gold reserves and identifying new resources which, in many cases, can be quickly incorporated into mine plans, driving near-term improvements in production and cash flow. In addition, Barrick Nevada currently has approximately 4.8 million ounces of proven gold reserves in existing stockpiles. To unlock the full potential of our Nevada asset base, the Company is evaluating an increase in processing capacity that would accommodate new production from organic projects, and bring forward production from stockpiles, increasing overall production levels from Nevada.

NEVADA, U.S.A.

Turquoise Ridge (75 percent Barrick)13 - Shaft sinking preparation underway
Barrick is constructing a third shaft at Turquoise Ridge, which will allow the mine to roughly double annual production to more than 500,000 ounces per year (100 percent basis), at an average cost of sales of around $720 per ounce, and average all-in sustaining costs4 of roughly $630 per ounce. The contract for shaft sinking was awarded to Thyssen Mining during the first quarter, and mobilization planning is now underway. Procurement of long-lead-time items has begun, with major components such as the shaft hoist now ordered. Construction during the first quarter centered on well drilling activities, electrical distribution, and mine site utility construction and activation. The capital cost for this project is estimated to be $300-$325 million (100 percent basis). Initial production from the new shaft is expected to begin in 2022, with sustained production from 2023. At 15.56 grams per tonne, Turquoise Ridge has the highest average reserve grade in the Company's operating portfolio, and among the highest in the gold industry.

Goldrush - Portal pad construction completed, decline development underway
When in full operation, the Goldrush underground project is expected to produce approximately 500,000 ounces of gold per year, at a cost of sales3 of roughly $750 per ounce, and all-in sustaining costs4 of approximately $640 per ounce. Portal pad construction for twin declines was completed in the first quarter of 2018, with decline construction now underway. Decline construction, detailed engineering, and permitting are expected to take place between 2018 and 2021, with construction and initial production expected between 2021 and 2022, and sustained production expected from 2023. The exploration twin declines will provide access to the orebody at depth, which will enable further exploration drilling, as well as the conversion of existing resources to reserves. These declines can be converted into production declines in the future. Goldrush currently has proven and probable gold reserves of 1.5 million ounces14, and measured and indicated gold resources of 9.4 million ounces14, with significant potential to identify additional resources once underground access to drill the deposit is established. Ongoing surface drilling in the Red Hill zone of the deposit in 2018 is also expected to support additional resource conversion.

Cortez Deep South15 - Rangefront east decline completed, infrastructure under construction
The Deep South project is expected to contribute approximately 300,000 ounces of annual gold production when fully ramped up between 2024 and 2028, at a cost of sales3 of $650 per ounce, and all-in sustaining costs4 of $580 per ounce. Deep South will utilize infrastructure which has already been approved under current plans to expand mining in the Lower Zone of the Cortez underground mine, including the new Rangefront twin declines and other underground infrastructure already under construction. The east decline is now complete, breaking through to the underground mine approximately two weeks ahead of schedule on March 18. The west decline is 38 percent complete and advancing according to schedule. Permitting for Deep South was initiated in 2016 with the submission of an amendment to the current Mine Plan of Operations to the Bureau of Land Management. A record of decision on an Environmental Impact Statement is expected in the second half of 2019, followed by two years of construction, with initial production from Deep South in 2022.

Fourmile - More high grade drill results increase confidence
The Fourmile exploration project is located one to three kilometers north of the Goldrush deposit, and is the focus of our 2018 greenfield exploration program in Nevada. Drilling to date has intersected mineralization well above the average grade of the measured and indicated resources at Goldrush. We are increasingly confident that Fourmile and Goldrush form part of a seven-kilometer-long mineralized system, similar in length to the mineralization at Goldstrike. In 2018, we plan to drill 24 holes at Fourmile—with five holes now completed, and four in progress. Assay results completed in 2018 include a hole with 9.1 meters grading 40.9 grams per tonne of gold. Please see endnote 16 for a significant intercepts table including recent Fourmile drilling.

ARGENTINA/CHILE

Pascua-Lama
Over the past year, Barrick has been studying the optimization of the Pascua-Lama project. Work to date on the prefeasibility study for a potential underground project indicates that while the concept may be feasible from a technical standpoint, it does not meet Barrick's investment criteria. Based on this, and taking into consideration other risk factors, the Company has suspended work on the prefeasibility study, and will focus on adjusting the project closure plan for surface infrastructure on the Chilean side of the project, in line with legal requirements. Barrick will continue to evaluate opportunities to de-risk the project while maintaining Pascua-Lama as an option for development in the future if economics improve, and related risks can be mitigated. 

ACACIA MINING PLC UPDATE

Discussions between the Government of Tanzania and Barrick concerning the proposed framework agreement for Acacia Mining plc's operations in Tanzania have been constructive and continue to progress. Detailed legal agreements concerning the implementation of the conceptual framework are now being drafted. Barrick has continued to engage with independent directors of Acacia during this process, and Acacia is supporting Barrick in its ongoing discussions. We continue to target the first half of 2018 for the completion of a detailed proposal for review by Acacia. Under the proposed framework agreement, economic benefits generated by Acacia's operations would be split with the Government of Tanzania on a 50/50 basis. The Government's portion would be delivered primarily in the form of royalties, taxes, and a 16 percent free carried interest in Acacia's Tanzanian operations, in line with the country's new mining law.

TECHNICAL INFORMATION

The scientific and technical information contained in this press release has been reviewed and approved by: Steven Haggarty, P. Eng., Senior Director, Metallurgy of Barrick; Rick Sims, Registered Member SME, Vice President, Reserves and Resources of Barrick; and Robert Krcmarov, FAusIMM, Executive Vice President, Exploration and Growth of Barrick—each a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.


Appendix 1
2018 Operating and Capital Expenditure Guidance

 
GOLD PRODUCTION AND COSTS
 Production
(000s ounces)
Cost of sales3
($ per ounce)
All-in
sustaining costs4
($ per ounce)
Cash costs4
($ per ounce)
Barrick Nevada2,000 - 2,255760 - 810610 - 660470 - 530
Turquoise Ridge (75%)240 - 270670 - 720650 - 730 580 - 620
Pueblo Viejo (60%)585 - 615 720 - 750590 - 620425 - 450
Veladero (50%)275 - 330970 - 1,110960 - 1,100560 - 620
Lagunas Norte230 - 270780 - 910670 - 780420 - 490
Porgera (47.5%)230 - 255950 - 1,000950 - 1,000780 - 830
Kalgoorlie (50%)350 - 400775 - 825750 - 800640 - 690
Acacia (63.9%)275 - 305970 - 1,020935 - 985690 - 720
Hemlo200 - 220860 - 920975 - 1,075740 - 790
Golden Sunlight35 - 501,100 - 1,2001,290 - 1,4601,130 - 1,230
Total Gold4,500 - 5,00017810 - 850765 - 815540 - 575
 
COPPER PRODUCTION AND COSTS
 Production
(millions of pounds)
Cost of sales3
($ per pound)
All-in
sustaining costs5
($ per pound)
C1 cash costs5
($ per pound)
Zaldívar (50%)115 - 1302.30 - 2.502.05 - 2.25~1.70
Lumwana230 - 2651.65 - 1.902.50 - 2.801.65 - 1.90
Jabal Sayid (50%)40 - 551.85 - 2.501.70 - 2.301.40 - 1.80
Total Copper385 - 450171.80 - 2.102.30 - 2.601.55 - 1.75
 
CAPITAL EXPENDITURES
 ($ millions) 
Mine site sustaining950 - 1,100 
Project450 - 550 
Total Attributable Capital Expenditures61,400 - 1,600 


Appendix 2

2018 Outlook Assumptions and Economic Sensitivity Analysis

 2018 Guidance
Assumption
Hypothetical
Change
Impact on
Revenue
(millions)
Impact on
Cost of sales3
(millions)
Impact on
All-in sustaining
costs4,5
Gold revenue, net of royalties$1,200/oz+/- $100/oz+/- $363+/- $10+/- $3/oz
Copper revenue, net of royalties18$2.75/lb+ $0.50/lb+ $163+ $12+ $0.04/lb
Copper revenue, net of royalties18$2.75/lb- $0.50/lb- $137- $10- $0.03/lb
Gold all-in sustaining costs4     
WTI crude oil price19$55/bbl+/- $10/bbln/a+/- $20+/- $5/oz
Australian dollar exchange rate0.75 : 1+/- 10%n/a+/- $22+/- $6/oz
Argentine peso exchange rate18.35 : 1+/- 10%n/a+/- $11+/- $3/oz
Canadian dollar exchange rate1.25 : 1+/- 10%n/a+/- $26+/- $7/oz
Copper all-in sustaining costs5     
WTI crude oil price19$55/bbl+/- $10/bbln/a+/- $3+/- $0.06/lb
Chilean peso exchange rate650 : 1+/- 10%n/a+/- $7+/- $0.02/lb


Endnotes

ENDNOTE 1

“Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial performance measures. Adjusted net earnings excludes the following from net earnings: certain impairment charges (reversals) related to intangibles, goodwill, property, plant and equipment, and investments; gains (losses) and other one-time costs relating to acquisitions or dispositions; foreign currency translation gains (losses); significant tax adjustments not related to current period earnings; unrealized gains (losses) on non-hedge derivative instruments; and the tax effect and non-controlling interest of these items. The Company uses this measure internally to evaluate our underlying operating performance for the reporting periods presented and to assist with the planning and forecasting of future operating results. Barrick believes that adjusted net earnings is a useful measure of our performance because these adjusting items do not reflect the underlying operating performance of our core mining business and are not necessarily indicative of future operating results. Adjusted net earnings and adjusted net earnings per share are intended to provide additional information only and do not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on these non-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.


Reconciliation of Net Earnings to Net Earnings per Share, Adjusted Net Earnings and Adjusted Net Earnings per Share

  
($ millions, except per share amounts in dollars)For the three months ended March 31 
  2018  2017 
Net earnings attributable to equity holders of the Company$158 $679 
Impairment charges related to intangibles, goodwill, property, plant and equipment, and investments1 2  (1,125)
Acquisition/disposition (gains)/losses2 (46) 3 
Foreign currency translation losses 15  3 
Significant tax adjustments3 46  (3)
Other expense adjustments (6) 6 
Unrealized gains on non-hedge derivative instruments   3 
Tax effect and non-controlling interest 1  596 
Adjusted net earnings$170 $162 
Net earnings per share4 0.14  0.58 
Adjusted net earnings per share4 0.15  0.14 

1  Net impairment reversals for the three months ended March 31, 2017 primarily relate to impairment reversals at the Cerro Casale project upon reclassification of the project’s net assets as held-for-sale as at March 31, 2017.
2  Disposition gains for the three months ended March 31, 2018 primarily relate to the gain on the sale of a non-core royalty asset at Acacia.
3  Significant tax adjustments for the three months ended March 31, 2018 primarily relate to a tax audit of Pueblo Viejo in the Dominican Republic.
4  Calculated using weighted average number of shares outstanding under the basic method of earnings per share.


ENDNOTE 2

“Free cash flow” is a non-GAAP financial performance measure which deducts capital expenditures from net cash provided by operating activities. Barrick believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other companies. Free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on these non-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.


Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

($ millions)For the three months ended March 31 
  2018  2017 
Net cash provided by operating activities$507 $495 
Capital expenditures (326) (334)
Free cash flow$181 $161 


ENDNOTE 3

Cost of sales applicable to gold per ounce is calculated using cost of sales applicable to gold on an attributable basis (removing the non-controlling interest of 40% Pueblo Viejo and 36.1% Acacia from cost of sales), divided by attributable gold ounces. Cost of sales applicable to copper per pound is calculated using cost of sales applicable to copper including our proportionate share of cost of sales attributable to equity method investments (Zaldívar and Jabal Sayid), divided by consolidated copper pounds (including our proportionate share of copper pounds from our equity method investments).

ENDNOTE 4

“Cash costs” per ounce and “All-in sustaining costs” per ounce are non-GAAP financial performance measures. “Cash costs” per ounce starts with cost of sales applicable to gold production, but excludes the impact of depreciation, the non-controlling interest of cost of sales, and includes by-product credits. “All-in sustaining costs” per ounce begin with “Cash costs” per ounce and add further costs which reflect the additional costs of operating a mine, primarily sustaining capital expenditures, general & administrative costs, minesite exploration and evaluation costs, and reclamation cost accretion and amortization. Barrick believes that the use of “cash costs” per ounce and “all-in sustaining costs” per ounce will assist investors, analysts and other stakeholders in understanding the costs associated with producing gold, understanding the economics of gold mining, assessing our operating performance and also our ability to generate free cash flow from current operations and to generate free cash flow on an overall Company basis. “Cash costs” per ounce and “All-in sustaining costs” per ounce are intended to provide additional information only and do not have any standardized meaning under IFRS. Although a standardized definition of all-in sustaining costs was published in 2013 by the World Gold Council (a market development organization for the gold industry comprised of and funded by 25 gold mining companies from around the world, including Barrick), it is not a regulatory organization, and other companies may calculate this measure differently. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Further details on these non-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.


Reconciliation of Gold Cost of Sales to Cash costs, All-in sustaining costs and All-in costs, including on a per ounce basis

($ millions, except per ounce information in dollars) For the three months ended March 31 
 Footnote 2018  2017 
Cost of sales applicable to gold production $1,046 $1,238 
  Depreciation  (298) (385)
By-product credits  (36) (41)
Realized (gains)/losses on hedge and non-hedge derivatives1    
Non-recurring items2 (7)  
  Other3 (21) (20)
Non-controlling interests (Pueblo Viejo and Acacia)4 (72) (81)
Cash costs $612 $711 
  General & administrative costs  48  72 
  Minesite exploration and evaluation costs5 6  7 
  Minesite sustaining capital expenditures6 231  262 
  Rehabilitation - accretion and amortization (operating sites)7 19  17 
Non-controlling interest, copper operations and other8 (55) (61)
All-in sustaining costs $861 $1,008 
  Project exploration and evaluation and project costs5 67  68 
  Community relations costs not related to current operations  1  1 
  Project capital expenditures6 100  56 
Rehabilitation - accretion and amortization (non-operating sites)7 8  3 
Non-controlling interest and copper operations8 (5) (7)
All-in costs $1,032 $1,129 
Ounces sold - equity basis (000s ounces)9 1,071  1,305 
Cost of sales per ounce10,11$878 $833 
Cash costs per ounce11$573 $545 
Cash costs per ounce (on a co-product basis)11,12$596 $568 
All-in sustaining costs per ounce11$804 $772 
All-in sustaining costs per ounce (on a co-product basis)11,12$827 $795 
All-in costs per ounce11$963 $865 
All-in costs per ounce (on a co-product basis)11,12$986 $888 
  1. Realized (gains)/losses on hedge and non-hedge derivatives

Includes realized hedge losses of $1 million for the three months ended March 31, 2018 (2017: $6 million), and realized non-hedge gains of $1 million for the three months ended March 31, 2018 (2017: $6 million). Refer to Note 5 to the quarterly Financial Statements for further information.

  1. Non-recurring items

Non-recurring items in 2018 relate to abnormal costs at Porgera as a result of the February 2018 earthquake in Papua New Guinea.  These costs are not indicative of our cost of production and have been excluded from the calculation of cash costs.

  1. Other

Other adjustments for the three months ended March 31, 2018 include adding the cost of treatment and refining charges of $nil (2017: $1 million) and the removal of cash costs and by-product credits associated with our Pierina mine, which is mining incidental ounces as it enters closure, of $21 million (2017: $21 million).

  1. Non-controlling interests (Pueblo Viejo and Acacia)

Non-controlling interests include non-controlling interests related to gold production of $106 million for the three months ended March 31, 2018 (2017: $116 million). Refer to Note 5 to the quarterly Financial Statements for further information.

  1. Exploration and evaluation costs   

Exploration, evaluation and project expenses are presented as minesite sustaining if it supports current mine operations and project if it relates to future projects. Refer to page 28 of Barrick's first quarter MD&A.

  1. Capital expenditures 

Capital expenditures are related to our gold sites only and are presented on a 100% accrued basis. They are split between minesite sustaining and project capital expenditures. Project capital expenditures are distinct projects designed to increase the net present value of the mine and are not related to current production. Significant projects in the current year are stripping at Cortez Crossroads, the Range Front declines, the Goldrush exploration declines and construction of the third shaft at Turquoise Ridge). Refer to page 27 of Barrick's first quarter MD&A.

  1. Rehabilitation—accretion and amortization

Includes depreciation on the assets related to rehabilitation provisions of our gold operations and accretion on the rehabilitation provision of our gold operations, split between operating and non-operating sites.

  1. Non-controlling interest and copper operations  

Removes general & administrative costs related to non-controlling interests and copper based on a percentage allocation of revenue. Also removes exploration, evaluation and project expenses, rehabilitation costs and capital expenditures incurred by our copper sites and the non-controlling interest of our Acacia and Pueblo Viejo operating segments and South Arturo. Figures remove the impact of Pierina. The impact is summarized as the following:

($ millions)For the three months ended March 31 
 Non-controlling interest, copper operations and other 2018  2017 
General & administrative costs$(7)$(9)
Minesite exploration and evaluation expenses   (1)
Rehabilitation - accretion and amortization (operating sites) (1) (3)
Minesite sustaining capital expenditures (47) (48)
 All-in sustaining costs total$(55)$(61)
Project exploration and evaluation and project costs (3) (6)
Project capital expenditures (2) (1)
 All-in costs total$(5)$(7)
  1. Ounces sold - equity basis

Figures remove the impact of Pierina as the mine is currently going through closure.

  1. Cost of sales per ounce

Figures remove the cost of sales impact of Pierina of $32 million for the three month periods ended March 31, 2018 (2017: $34 million), as the mine is currently going through closure. Cost of sales per ounce excludes non-controlling interest related to gold production. Cost of sales applicable to gold per ounce is calculated using cost of sales on an attributable basis (removing the non-controlling interest of 40% Pueblo Viejo and 36.1% Acacia from cost of sales), divided by attributable gold ounces.

  1. Per ounce figures 

Cost of sales per ounce, cash costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce may not calculate based on amounts presented in this table due to rounding.

  1. Co-product costs per ounce 

Cash costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce presented on a co-product basis removes the impact of by-product credits of our gold production (net of non-controlling interest) calculated as:

($ millions)For the three months ended March 31 
  2018  2017 
 By-product credits$36 $41 
 Non-controlling interest (11) (8)
 By-product credits (net of non-controlling interest)$25 $33 


ENDNOTE 5

“C1 cash costs” per pound and “All-in sustaining costs” per pound are non-GAAP financial performance measures. “C1 cash costs” per pound is based on cost of sales but excludes the impact of depreciation and royalties and includes treatment and refinement charges. “All-in sustaining costs” per pound begins with “C1 cash costs” per pound and adds further costs which reflect the additional costs of operating a mine, primarily sustaining capital expenditures, general & administrative costs and royalties. Barrick believes that the use of “C1 cash costs” per pound and “all-in sustaining costs” per pound will assist investors, analysts, and other stakeholders in understanding the costs associated with producing copper, understanding the economics of copper mining, assessing our operating performance, and also our ability to generate free cash flow from current operations and to generate free cash flow on an overall Company basis. “C1 cash costs” per pound and “All-in sustaining costs” per pound are intended to provide additional information only, do not have any standardized meaning under IFRS, and may not be comparable to similar measures of performance presented by other companies. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on these non-GAAP measures are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.


Reconciliation of Copper Cost of Sales to C1 cash costs and All-in sustaining costs, including on a per pound basis

($ millions, except per pound information in dollars)For the three months ended March 31 
  2018  2017 
Cost of sales$96 $82 
Depreciation/amortization (19) (14)
Treatment and refinement charges 31  32 
Cash cost of sales applicable to equity method investments 63  61 
Less: royalties and production taxes1 (10) (7)
By-product credits (2)  
C1 cash cost of sales$159 $154 
General & administrative costs 5  3 
Rehabilitation - accretion and amortization 5  2 
Royalties and production taxes1 10  7 
Minesite exploration and evaluation costs    
Minesite sustaining capital expenditures 42  37 
All-in sustaining costs$221 $203 
Pounds sold - consolidated basis (millions pounds) 85  93 
Cost of sales per pound2,3$2.07 $1.73 
C1 cash cost per pound2$1.88 $1.65 
All-in sustaining costs per pound2$2.61 $2.19 

1  Royalties and production taxes include royalties of $9 million (2017: $7 million).
2  Cost of sales per pound, C1 cash costs per pound and all-in sustaining costs per pound may not calculate based on amounts presented in this table due to rounding.
3  Cost of sales applicable to copper per pound is calculated using cost of sales including our proportionate share of cost of sales attributable to equity method investments (Zaldívar and Jabal Sayid), divided by consolidated copper pounds (including our proportionate share of copper pounds from our equity method investments).

ENDNOTE 6

These amounts are presented on the same basis as our guidance and include our 60% share of Pueblo Viejo and South Arturo, our 63.9% share of Acacia and our 50% share of Zaldívar and Jabal Sayid.

ENDNOTE 7

Includes both minesite sustaining and mine development.

ENDNOTE 8

Project capital expenditures are included in our calculation of all-in costs, but not included in our calculation of all-in sustaining costs.

ENDNOTE 9

This is a non-GAAP financial performance measure with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information and a detailed reconciliation of each non-GAAP measure to the most directly comparable IFRS measure, please see pages 44 to 55 of Barrick's first quarter MD&A.

ENDNOTE 10

Includes $112 million of cash, primarily held at Acacia, which may not be readily deployed.

ENDNOTE 11

Amount excludes capital leases and includes Acacia (100% basis).

ENDNOTE 12

Barrick’s share.

ENDNOTE 13

For additional detail regarding Turquoise Ridge, see the Technical Report on the Turquoise Ridge Mine, State of Nevada, U.S.A., dated March 19, 2018, and filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov on March 23, 2018.

ENDNOTE 14

Estimated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. Estimates are as of December 31, 2017, unless otherwise noted. Goldrush probable reserves of 5.7 million tonnes grading 8.12 g/t, representing 1.5 million ounces of gold. Goldrush measured resources of 140,000 tonnes grading 10.44 g/t, representing 47,000 ounces of gold, and indicated resources 31.4 million tonnes grading 9.27 g/t, representing 9.4 million ounces of gold. Complete mineral reserve and mineral resource data for all mines and projects referenced in this press release, including tonnes, grades, and ounces, can be found on pages 29-39 of Barrick’s Annual Information Form for the year ended December 31, 2017.

ENDNOTE 15

For additional detail regarding Cortez, see the Technical Report on the Cortez Joint Venture Operations, Lander and Eureka Counties, State of Nevada, U.S.A., dated March 21, 2016, and filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov on March 28, 2016.

ENDNOTE 16

Fourmile Significant Intercepts1

Core Drill Hole2AzimuthDipInterval (m)Width (m)3Au (g/t)
GRC-0427DNA-90666.9-672.75.810.9
695.3-709.614.331.8
921.4-927.25.849.6
GRC-0435DNA-90702.2-707.45.214.4
FM16-01DNA-90  no significant
intercept
FM16-04DNA-90609.9-611.41.55.95
616-617.51.55.6
FM16-05DNA-90705.6-714.08.430.6
FM16-10D357-77730.6-733.635.7
FM17-01D275-87866.9-870.53.66.1
FM17-01DW1300-86867.1-868.81.725.0
870.4-871.4155.4
FM17-02W166-77  no significant
intercept
FM17-03D70-881178.6-1183.54.911.46
FM17-04D282-83  no significant
intercept
FM17-05D278-801132.4-1135.93.517.6
FM17-06AW196-84996.1-996.90.837
FM17-07D90-85684.2-687.93.710.3
FM17-11D82-82696.4-730.133.713.3
FM17-12W15-81736.8-741.44.619.9
856.8-862.65.810.9
FM17-13D324-82652.9-660.87.912.4
662.2-664.62.49.8
FM17-14D49-79812.1-821.99.816.6
870.5-873.63.19.97
FM17-15D21-82689.9-692.52.615.7
FM17-16D92-82  no significant
intercept
FM17-17D133-81706.8-709.32.418.25
FM17-18D267-84  no significant
intercept
FM18-11D6-81  no significant
intercept
FM18-15D0-78878.1-887-29.140.9
FM18-21D173-82712.6-714.11.5213.45

1 All significant intercepts calculated using a 5.0 g/t Au cutoff and are uncapped; internal dilution is less than 20% total width.
2 Nomenclature for drillholes (i.e., FM18-021D) is described by FM (i.e., Fourmile) followed by the year (i.e., 18 for 2018).
3 True width of intercepts are uncertain at this stage.

The drilling results for the Fourmile property contained in this press release have been prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists and re-checked by the project manager. Sample preparation and analyses are conducted by an independent laboratory. Procedures are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures, data verification and assay protocols used in connection with drilling and sampling on the Fourmile property conform to industry accepted quality control methods.

ENDNOTE 17

Operating unit guidance ranges for production reflect expectations at each individual operating unit, but do not necessarily add up to the corporate-wide guidance range total.

ENDNOTE 18

As at March 31, 2018, utilizing option collar strategies, the Company has protected the downside on approximately 30 million pounds of expected copper production for the second quarter of 2018 at an average floor price of $2.83 per pound and can participate in the upside on the same amount up to an average of $3.25 per pound.  Our remaining copper production is subject to market prices.

ENDNOTE 19

Due to our hedging activities, which are reflected in these sensitivities, we are partially protected against changes in these factors. 

Key Statistics

Barrick Gold Corporation  
(in United States dollars)Three months ended March 31,
  2018 2017
Financial Results (millions)  
Revenues$1,790$1,993
Cost of sales 1,152 1,342
Net earnings1 158 679
Adjusted net earnings2 170 162
Adjusted EBITDA2 796 919
Total capital expenditures - sustaining3 231 262
Total project capital expenditures3 100 56
Net cash provided by operating activities 507 495
Free cash flow2 181 161
Per share data (dollars)  
Net earnings (basic and diluted) 0.14 0.58
Adjusted net earnings (basic)2$0.15$0.14
Weighted average diluted common shares (millions) 1,167 1,166
Operating Results  
Gold production (thousands of ounces)4 1,049 1,309
Gold sold (thousands of ounces)4 1,071 1,305
Per ounce data  
Average spot gold price$1,329$1,219
Average realized gold price2,4 1,332 1,220
Cost of sales (Barrick’s share)4,5 878 833
All-in sustaining costs2,4 804 772
  Cash costs2,4$573$545
Copper production (millions of pounds)6 85 95
Copper sold (millions of pounds)6 85 93
Per pound data  
Average spot copper price$3.16$2.65
Average realized copper price2,6 2.98 2.76
Cost of sales (Barrick’s share)6,7 2.07 1.73
C1 cash costs2,6 1.88 1.65
All-in sustaining costs2,6$2.61$2.19
 As at March 31,As at December 31,
  2018 2017
Financial Position (millions)  
Cash and equivalents$2,384$2,234
Working capital (excluding cash)$1,158$1,184


Net earnings represents net earnings attributable to the equity holders of the Company.
2Adjusted net earnings, adjusted EBITDA, free cash flow, adjusted net earnings per share, realized gold price, all-in sustaining costs, cash costs and realized copper price are non-GAAP financial performance measures with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information and a detailed reconciliation of each non-GAAP measure to the most directly comparable IFRS measure, please see pages 44 to 55 of this MD&A.
3Amounts presented on a consolidated accrued basis. Project capital expenditures are included in our calculation of all-in costs, but not included in our calculation of all-in sustaining costs.
4Includes Acacia on a 63.9% basis, Pueblo Viejo on a 60% basis, South Arturo on a 60% basis, and Veladero on a 50% basis from July 1, 2017 onwards, which reflects our equity share of production and sales.
5Cost of sales per ounce (Barrick’s share) is calculated as cost of sales - gold on an attributable basis excluding Pierina divided by gold ounces sold.
6Amounts reflect production and sales from Jabal Sayid and Zaldívar on a 50% basis, which reflects our equity share of production, and Lumwana.
7Cost of sales per pound (Barrick’s share) is calculated as cost of sales - copper plus our equity share of cost of sales attributable to Zaldívar and Jabal Sayid divided by copper pounds sold.

Production and Cost Summary

 Production
 Three months ended March 31,
  2018 2017
Gold (equity ounces (000s))  
Barrick Nevada1 471 521
Turquoise Ridge 46 55
Pueblo Viejo2 141 143
Veladero3 74 151
Lagunas Norte 66 88
Acacia4 77 140
Other Mines - Gold5 174 211
  Total 1,049 1,309
   
 Copper (equity pounds (millions))6 85 95
 Cost of Sales per unit (Barrick’s share)
 Three months ended March 31,
  2018 2017
 Gold Cost of Sales per ounce ($/oz)7  
Barrick Nevada$844$916
Turquoise Ridge 720 680
Pueblo Viejo 683 694
Veladero 1,036 846
Lagunas Norte 542 573
Acacia 941 816
 Total$878$833
   
 Copper Cost of Sales per pound ($/lb)8$2.07$1.73
 All-in sustaining costs9
 Three months ended March 31,
  2018 2017
 Gold All-in Sustaining Costs ($/oz)  
Barrick Nevada1$690$694
Turquoise Ridge 709 714
Pueblo Viejo2 571 541
Veladero3 1,008 890
Lagunas Norte 496 428
Acacia4 976 934
 Total$804$772
   
 Copper All-in Sustaining Costs ($/lb)6$2.61$2.19


1Reflects production and sales from Goldstrike, Cortez, and South Arturo on a 60% basis, which reflects our equity share.
2 Reflects production and sales from Pueblo Viejo on a 60% basis, which reflects our equity share.
3Reflects production and sales from Veladero on a 50% basis from July 1, 2017 onwards, which reflects our equity share.
4Reflects production and sales from Acacia on a 63.9% basis, which reflects our equity share.
5 Other Mines - Gold includes Golden Sunlight, Hemlo, Porgera on a 47.5% basis and Kalgoorlie on a 50% basis.
6Reflects production and sales from Lumwana, and Jabal Sayid and Zaldívar on a 50% basis, which reflects our equity share.
7Cost of sales per ounce (Barrick’s share) is calculated as cost of sales - gold on an attributable basis excluding Pierina divided by gold equity ounces sold.
8Cost of sales per pound (Barrick’s share) is calculated as cost of sales - copper plus our equity share of cost of sales attributable to Zaldívar and Jabal Sayid divided by copper pounds sold.
9All-in sustaining costs is a non-GAAP financial performance measure with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information and a detailed reconciliation of this non-GAAP measure to the most directly comparable IFRS measure, please see pages 44 to 55 of our first quarter MD&A.

Consolidated Statements of Income

Barrick Gold Corporation
(in millions of United States dollars, except per share data) (Unaudited)
Three months ended March 31, 
  2018  2017 
Revenue (notes 5 and 6)$1,790 $1,993 
Costs and expenses (income)  
Cost of sales (notes 5 and 7) 1,152  1,342 
General and administrative expenses 48  72 
Exploration, evaluation and project expenses 73  75 
Impairment (reversals) charges (notes 9B and 13) 2  (1,125)
Loss on currency translation (note 9C) 15  3 
Closed mine rehabilitation (9) 8 
Income from equity investees (note 12) (16) (11)
Gain on non-hedge derivatives (2) (4)
Other expense (note 9A) 1  2 
Income before finance costs and income taxes$526 $1,631 
Finance costs, net (133) (150)
Income before income taxes$393 $1,481 
Income tax expense (note 10) (201) (592)
Net income$192 $889 
Attributable to:  
Equity holders of Barrick Gold Corporation$158 $679 
Non-controlling interests$34 $210 
   
Earnings per share data attributable to the equity holders of Barrick Gold Corporation (note 8)  
Net income  
  Basic$0.14 $0.58 
  Diluted$0.14 $0.58 

The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2018 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 dollars) (Unaudited)
Three months ended March 31, 
  2018  2017 
Net income$192 $889 
Other comprehensive income (loss), net of taxes  
Movement in equity investments fair value reserve:  
Net unrealized change on equity investments, net of tax $nil and $nil (4) 1 
Items that may be reclassified subsequently to profit or loss:  
Unrealized gains (losses) on derivatives designated as cash flow hedges, net of tax ($3) and $nil 6  (12)
Realized losses on derivatives designated as cash flow hedges, net of tax $nil and $nil   1 
Currency translation adjustments, net of tax $nil and $nil   11 
Total other comprehensive income 2  1 
Total comprehensive income$194 $890 
Attributable to:  
Equity holders of Barrick Gold Corporation$160 $680 
Non-controlling interests$34 $210 

The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2018 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 March 31, 
  2018  2017 
OPERATING ACTIVITIES  
Net income$192 $889 
Adjustments for the following items:  
Depreciation 325  414 
Finance costs 138  153 
Impairment (reversals) charges (note 13) 2  (1,125)
Income tax expense (note 10) 201  592 
(Gain) loss on sale of non-current assets/investments (46) 3 
Currency translation losses 15  3 
Change in working capital (note 11) (176) (196)
Other operating activities (note 11) (64) (84)
Operating cash flows before interest and income taxes 587  649 
Interest paid (28) (35)
Income taxes paid (52) (119)
Net cash provided by operating activities 507  495 
INVESTING ACTIVITIES  
Property, plant and equipment  
  Capital expenditures (note 5) (326) (334)
  Sales proceeds 2  7 
Investment purchases (1)  
Sale of mineral royalty 45   
Funding of equity method investments (4) (4)
Net cash used in investing activities (284) (331)
FINANCING ACTIVITIES  
Debt  
  Repayments (23) (180)
Dividends (31) (31)
Funding from non-controlling interests 8   
Disbursements to non-controlling interests (26) (67)
Net cash used in financing activities (72) (278)
Effect of exchange rate changes on cash and equivalents (1) 2 
Net increase (decrease) in cash and equivalents 150  (112)
Cash and equivalents  at the beginning of period 2,234  2,389 
Cash and equivalents at the end of period$2,384 $2,277 

The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2018 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 March 31,
 As at December 31, 
  2018  2017 
ASSETS  
Current assets  
  Cash and equivalents (note 14A)$2,384 $2,234 
  Accounts receivable 173  239 
  Inventories 1,887  1,890 
  Other current assets 352  321 
Total current assets$4,796 $4,684 
Non-current assets  
  Equity in investees (note 12) 1,233  1,213 
  Property, plant and equipment 13,755  13,806 
  Goodwill 1,330  1,330 
  Intangible assets 255  255 
  Deferred income tax assets 1,071  1,069 
  Non-current portion of inventory 1,711  1,681 
  Other assets 1,245  1,270 
Total assets$25,396 $25,308 
LIABILITIES AND EQUITY  
Current liabilities  
  Accounts payable$1,046 $1,059 
  Debt (note 14B) 57  59 
  Current income tax liabilities 340  298 
  Other current liabilities 255  331 
Total current liabilities$1,698 $1,747 
Non-current liabilities  
  Debt (note 14B) 6,344  6,364 
  Provisions 3,078  3,141 
  Deferred income tax liabilities 1,319  1,245 
  Other liabilities 1,691  1,744 
Total liabilities$14,130 $14,241 
Equity  
  Capital stock (note 16)$20,897 $20,893 
  Deficit (11,572) (11,759)
  Accumulated other comprehensive loss (167) (169)
  Other 321  321 
Total equity attributable to Barrick Gold Corporation shareholders$9,479 $9,286 
  Non-controlling interests 1,787  1,781 
Total equity$11,266 $11,067 
Contingencies and commitments (notes 5 and 17)  
Total liabilities and equity$25,396 $25,308 

The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2018 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  
(in millions of United States dollars) (Unaudited)Common
Shares (in thousands)
 Capital stock Retained deficit Accumulated
other
comprehensive income
(loss)1
 Other2 Total equity
attributable to shareholders
 Non-controlling interests Total equity 
At December 31, 20171,166,577 $20,893 $(11,759)$(169)$321 $9,286 $1,781 $11,067 
Impact of adopting IFRS 15 on January 1, 2018 (note 2B)    64      64    64 
At January 1, 2018 (restated)1,166,577 $20,893 $(11,695)$(169)$321 $9,350 $1,781 $11,131 
Net income    158      158  34  192 
Total other comprehensive income      2    2    2 
Total comprehensive income    158  2    160  34  194 
Transactions with owners        
Dividends    (31)     (31)   (31)
Funding from non-controlling interests            8  8 
Other decrease in non-controlling interest            (36) (36)
Dividend reinvestment plan (note 16)316  4  (4)          
Total transactions with owners316  4  (35)     (31) (28) (59)
At March 31, 20181,166,893 $20,897 $(11,572)$(167)$321 $9,479 $1,787 $11,266 
         
At January 1, 20171,165,574 $20,877 $(13,074)$(189)$321 $7,935 $2,378 $10,313 
Net income    679      679  210  889 
Total other comprehensive income      1    1    1 
Total comprehensive income    679  1    680  210  890 
Transactions with owners        
Dividends    (31)     (31)   (31)
Funding from non-controlling interests               
Other decrease in non-controlling interests            (90) (90)
Dividend reinvestment plan201  4  (4)          
Total transactions with owners201  4  (35)     (31) (90) (121)
At March 31, 20171,165,775 $20,881 $(12,430)$(188)$321 $8,584 $2,498 $11,082 


1Includes cumulative translation losses at March 31, 2018: $73 million (March 31, 2017: $71 million).
Includes additional paid-in capital as at March 31, 2018: $283 million (December 31, 2017: $283 million; March 31, 2017: $283 million) and convertible borrowings - equity component as at March 31, 2018: $38 million (December 31, 2017: $38 million; March 31, 2017: $38 million).

The notes to these unaudited condensed interim financial statements, which are contained in the First Quarter Report 2018 available on our website are an integral part of these consolidated financial statements.

HEAD OFFICE
Barrick Gold Corporation
Brookfield Place
TD Canada Trust Tower
161 Bay Street, Suite 3700
Toronto, Ontario  M5J 2S1

Telephone: +1 416 861-9911
Toll-free: 1-800-720-7415
Fax: +1 416 861-2492
Email:  [email protected]
Website:  www.barrick.com

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

TRANSFER AGENTS AND REGISTRARS
AST Trust Company (Canada)
P.O. Box 700, Postal Station B
Montreal, Quebec  H3B 3K3
or
American Stock Transfer & Trust Company, LLC
6201 – 15 Avenue
Brooklyn, New York  11219

Telephone:  1-800-387-0825
Fax:  1-888-249-6189
Email: [email protected]
Website: www.astfinancial.com

INVESTOR CONTACT
Deni Nicoski
Senior Vice President
Investor Relations
Telephone: +1 416 307-7474
Email: [email protected]

MEDIA CONTACT
Andy Lloyd
Senior Vice President
Communications
Telephone: +1 416 307-7414
Email: [email protected]

Cautionary Statement on Forward-Looking Information

Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “expect”, “anticipate”, “target”, “plan”, “objective”, “assume”, “aspire”, “intend”, “project”, “pursue”, “goal”, “continue”, “budget”, “estimate”, “potential”, “may”, “will”, “can”, “should”, “could”, “would” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: (i) Barrick’s forward-looking production guidance; (ii) estimates of future cost of sales per ounce for gold and per pound for copper, all-in-sustaining costs per ounce/pound, cash costs per ounce, and C1 cash costs per pound; (iii) our ability to continue to grow free cash flow; (iv) projected capital, operating, and exploration expenditures; (v) the timing required to negotiate and develop a detailed proposal with the Government of Tanzania related to the operations of Acacia Mining plc (“Acacia”) in Tanzania for review by Acacia; (vi) the estimated timing for permitting and a record of decision at Cortez Deep South; (vii)  the timing for construction, engineering and permitting at Goldrush; (viii) the adjustment of Barrick’s closure plan for surface infrastructure on the Chilean side of the Pascua-Lama project and continued evaluation of de-risking opportunities; (ix) targeted debt and cost reductions; (x) mine life and production rates; (xi) potential mineralization and metal or mineral recoveries; (xii) our pipeline of high confidence projects at or near existing operations; (xiii)  the potential impact and benefits of Barrick’s ongoing digital transformation; (xiv) the potential to identify new reserves and resources, and our ability to convert resources into reserves; (xv) asset sales, joint ventures, and partnerships; and (xvi) expectations regarding future price assumptions, financial performance, and other outlook or guidance.

Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; risks associated with the fact that certain Best-in-Class initiatives are still in the early stages of evaluation, and additional engineering and other analysis is required to fully assess their impact; risks associated with the ongoing implementation of Barrick’s digital transformation initiative, and the ability of the projects under this initiative to meet the Company’s capital allocation objectives; the duration of the Tanzanian ban on mineral concentrate exports; the ultimate terms of any definitive agreement between Acacia and the Government of Tanzania to resolve a dispute relating to the imposition of the concentrate export ban and allegations by the Government of Tanzania that Acacia under-declared the metal content of concentrate exports from Tanzania; the status of certain tax re-assessments by the Tanzanian government; the manner in which amendments to the 2010 Mining Act (Tanzania) increasing the royalty rate applicable to metallic minerals such as gold, copper and silver to 6% (from 4%), the new Finance Act (Tanzania) imposing a 1% clearing fee on the value of all minerals exported from Tanzania from July 1, 2017 and the new Mining Regulations announced by Government of Tanzania in January 2018 will be implemented and the impact of these and other legislative changes on Acacia; whether Acacia will approve the terms of any final agreement reached between Barrick and the Government of Tanzania with respect to the dispute between Acacia and the Government of Tanzania; the benefits expected from recent transactions being realized; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required infrastructure and information technology systems; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals; uncertainty whether some or all of the Best-in-Class initiatives, targeted investments and projects will meet the Company’s capital allocation objectives and internal hurdle rate; 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; adverse changes in our credit ratings; the impact of inflation; fluctuations in the currency markets; changes in U.S. dollar interest rates; risks arising from holding derivative instruments; changes in national and local government legislation, taxation, controls or regulations and/ or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in Canada, the United States, and other jurisdictions in which the Company or its affiliates do or may carry on business in the future; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law; damage to the Company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company’s handling of environmental matters or dealings with community groups, whether true or not; the possibility that future exploration results will not be consistent with the Company’s expectations; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; litigation and legal and administrative proceedings; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; business opportunities that may be presented to, or pursued by, the Company; risks associated with the fact that certain of the initiatives described in this press release are still in the early stages and may not materialize; our ability to successfully integrate acquisitions or complete divestitures; risks associated with working with partners in jointly controlled assets; employee relations including loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; availability and increased costs associated with mining inputs and labor; and the organization of our previously held African gold operations and properties under a separate listed Company. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).

Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40- F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.

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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Source: GlobeNewswire (April 23, 2018 - 5:01 PM EDT)

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