July 27, 2016 - 5:05 PM EDT
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Barrick Reports Second Quarter 2016 Results

TORONTO, ONTARIO--(Marketwired - July 27, 2016) - Barrick Gold Corporation (NYSE:ABX)(TSX:ABX)

All amounts expressed in US dollars

  • Barrick reported net earnings of $138 million ($0.12 per share), and adjusted net earnings1 of $158 million ($0.14 per share) for the second quarter. Second quarter EBITDA2 was $881 million.

  • The company reported revenues of $2.01 billion in the second quarter, and net cash provided by operating activities ("operating cash flow") was $527 million. Barrick generated $274 million in free cash flow3 in the second quarter, marking five consecutive quarters of positive free cash flow.

  • Gold production in the second quarter was 1.34 million ounces at a cost of sales applicable to gold of $1.23 billion, and all-in sustaining costs4 of $782 per ounce.

  • Compared to the first half of 2015, cost of sales applicable to gold has declined by 14 percent to $2.43 billion. Over the same period, we have reduced our all-in sustaining costs4 by 19 percent.

  • For the full year, we expect cost of sales applicable to gold to be in the range of $5.2-$5.5 billion. All-in sustaining cost4 guidance for 2016 has been reduced to $750-$790 per ounce, down from $760-$810 per ounce at the end of the first quarter, and below our original 2016 guidance of $775-$825 per ounce. We continue to expect gold production of 5.0-5.5 million ounces for the year.

  • We have reduced total debt by $968 million year-to-date, and remain on track to achieve our $2 billion debt reduction target for the year.

  • Commercial production has commenced at the Jabal Sayid copper mine in Saudi Arabia. Reflecting this milestone, we have increased our 2016 copper guidance to 380-430 million pounds, up from our original guidance of 370-410 million pounds.

Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (Barrick or the company) today reported net earnings of $138 million ($0.12 per share) for the second quarter, and adjusted net earnings1of $158 million ($0.14 per share). Second quarter EBITDA2 was $881 million. Second quarter revenues were $2.01 billion and operating cash flow was $527 million. The company generated $274 million in free cash flow3 in the second quarter, marking five consecutive quarters of positive free cash flow.

Second quarter cost of sales applicable to gold was $1.23 billion, a reduction of 13 percent compared to the prior-year period. Production in the quarter was 1.34 million ounces of gold at all-in sustaining costs4 of $782 per ounce. We continue to expect full-year production of 5.0-5.5 million ounces of gold. We expect cost of sales applicable to gold for 2016 to be in the range of $5.2-$5.5 billion. We have reduced our all-in sustaining cost4guidance to $750-$790 per ounce, down from our most recent range of $760-$810 per ounce.

Our operations continued to deliver robust performance in the second quarter, demonstrating capital discipline, improved operational efficiency and productivity, and stronger cost management as we target Best-in-Class performance. This is driving growing margins and profitability across the entire business, in support of our overriding objective to grow free cash flow per share. At the same time, we continue to strengthen our balance sheet with nearly $1 billion in debt repayments completed so far this year, or roughly half of our $2 billion debt reduction target for 2016. Lower debt levels have better positioned the company to withstand gold price volatility while setting us up to invest in future growth. 

Barrick has the industry's largest gold reserves and resources, with an average reserve grade significantly higher than our peer group average.5 This represents an immense source of value and optionality for the company. Our Growth Group is actively advancing a strategy to grow our free cash flow per share by allocating capital to the opportunities with the best returns. We are pursuing a multi-faceted approach that will optimize the development of our existing reserves and resources, invest in exploration to discover the next major deposit, and assess external opportunities for acquisitions, seed financing, earn-ins, and other partnerships and joint ventures. Ultimately, the investments we make will be focused on growing our free cash flow per share while maintaining strict capital discipline, such that we are continuously upgrading the long-term value of our portfolio. Our existing operations will also contribute to growth by achieving step changes in performance that will drive down our cost structure and expand margins. We will do this by leveraging innovation and new technology, which is a core pillar of our Best-in-Class philosophy.

FINANCIAL HIGHLIGHTS

Second quarter net earnings were $138 million ($0.12 per share) compared to a net loss of $9 million ($0.01 per share) in the prior year period. Adjusted net earnings1 for the second quarter were $158 million ($0.14 per share), compared to $60 million ($0.05 per share) in the prior year period. Higher net earnings reflect a decrease in operating costs, particularly lower fuel and energy prices (even when factoring in fuel hedges above spot prices), favorable foreign exchange movements, reduced royalty expense, and the impact of Best-in-Class initiatives, including lower labor, contractor, and consumable costs, and other operating efficiencies. In addition, earnings benefited from lower exploration, evaluation, and project expenses. The company generated $881 million of EBITDA2 in the second quarter compared to $690 million in the prior year period.

Second quarter revenues were $2.01 billion, compared to $2.23 billion in the prior year period. Operating cash flow in the second quarter was $527 million, compared to $525 million in the second quarter of 2015. Despite lower production as a result of non-core asset sales, operating cash flow remained in line with the prior year period. This was driven by higher gold prices and lower operating costs, as a result of lower energy and fuel costs, combined with lower labor, consumable, and contractor costs, and improved operating efficiencies driven by Best-in-Class initiatives. These gains were partially offset by an increase in working capital, combined with the impact of higher income taxes paid, compared to the prior year period. 

Free cash flow3 for the second quarter was $274 million, marking five consecutive quarters of positive free cash flow. This reflects our driving focus on maximizing free cash flow per share through capital discipline, improved operational efficiency and productivity, and stronger cost management.

RESTORING A STRONG BALANCE SHEET

Strengthening our balance sheet remains a top priority. In 2016, we intend to reduce our total debt by at least $2 billion by drawing on our existing cash balance, and by maximizing free cash flow from operations, as well as potential non-core asset sales.

So far this year, we have reduced our total debt by $968 million, representing approximately half of our debt reduction target for the year.

We will continue to pursue non-core asset sales with discipline, and will only proceed with transactions that make sense for the business, on terms we consider favorable to our shareholders.

In this regard, we intend to initiate a process to explore the sale of our 50 percent stake in the KCGM operation in Western Australia.

The company's liquidity position is strong and continues to improve, underpinned by free cash flow generation across the business, and modest near-term debt repayment obligations. At the end of the second quarter, Barrick had a consolidated cash balance of approximately $2.4 billion.6 The company now has less than $150 million7 in debt due before 2018, and about $5 billion of our outstanding debt of $9 billion does not mature until after 2032. Over the medium term, we aim to reduce our total debt to below $5 billion.

OPERATING HIGHLIGHTS AND OUTLOOK

Our over-arching objective as a business is to grow our free cash flow per share. In support of this objective, we are focused on driving industry-leading margins by improving the productivity and efficiency of our operations. This means a continuous, relentless cycle of improvement and innovation, underpinned by our Best-in-Class program. Our aspiration is to achieve all-in sustaining costs below $700 per ounce by 2019.

Barrick produced 1.34 million ounces of gold in the second quarter at a cost of sales of $1.23 billion, compared to 1.45 million ounces at a cost of sales of $1.41 billion in the prior year period. All-in sustaining costs4 in the second quarter were $782 per ounce, compared to $895 per ounce in the second quarter of 2015. Excluding the impact of divested mines, production for the second quarter increased by 126,000 ounces.

Compared to the first half of 2015, cost of sales applicable to gold declined by 14 percent to $2.43 billion, primarily due to fewer ounces sold as a result of divestments. Cost of sales at our remaining operations was in line with the prior-year period, with higher grades and sales volumes offset by a decrease in direct mining costs. Compared to the first half of 2015, all-in sustaining costs4 have fallen by 19 percent. These reductions reflect decreased direct mining costs, particularly lower fuel and energy prices, reduced royalty expense, and the impact of Best-in-Class initiatives, including lower labor, contractor, and consumable costs, and more predictive and precise maintenance. Lower mine site sustaining capital expenditures and a higher proportion of production from lower cost operations also contributed to lower all-in sustaining costs.

Please see page 31 of Barrick's Second Quarter 2016 Management Discussion and Analysis for individual operating segment performance details.

We continue to expect full-year gold production of 5.0-5.5 million ounces. For the full year, we expect cost of sales applicable to gold to be in the range of $5.2-$5.5 billion. We have reduced our all-in sustaining cost4 guidance for 2016 to $750-$790 per ounce, down from $760-$810 per ounce at the end of the first quarter, and below our original 2016 guidance of $775-$825 per ounce. All-in sustaining costs are now expected to be highest in the third quarter, reflecting a shift in the timing of certain sustaining capital expenditures to the second half of the year.

Capital expenditures for 2016 are now expected to be $1.25-$1.40 billion, down from $1.35-$1.55 billion at the end of the first quarter, and below our original 2016 guidance range of $1.35-$1.65 billion.

As we continue to embed Best-in-Class across the portfolio, we expect to identify additional savings opportunities over the course of the year.

             
    Second Quarter   Current   Original
Gold   2016   2016 Guidance   2016 Guidance
Production8 (000s of ounces)   1,340   5,000-5,500   5,000-5,500
Cost of sales applicable to gold ($millions)   1,227    5,200-5,500   N/A
All-in sustaining costs4 ($per ounce)   782   750-790   775-825
Cash costs4($per ounce)   578   540-570   550-590
Copper            
Production8(millions of pounds)   103   380-430   370-410
Cost of sales applicable to copper ($millions)   79    275-320   N/A
All-in sustaining costs9($per pound)   2.14   1.95-2.25   2.05-2.35
C1 cash costs9($per pound)   1.52   1.35-1.65   1.45-1.75
Total Capital Expenditures10($millions)   284   1,250-1,400   1,350-1,650
             

Mine Site Guidance Updates

Based on improved operational performance, we now anticipate higher production and lower costs at both Cortez and Turquoise Ridge. Cortez is now expected to produce 980,000-1,050,000 ounces of gold at all-in sustaining costs4 of $520-$550 per ounce, compared to our previous guidance range of 900,000-1,000,000 ounces at all-in sustaining costs of $580-$640 per ounce. At Turquoise Ridge, our share of production is now anticipated to be in the range of 240,000-260,000 ounces of gold at all-in sustaining costs of $640-$700 per ounce, compared to our previous guidance range of 200,000-220,000 ounces at all-in sustaining costs of $770-$850 per ounce.

Reflecting the impact of severe winter weather conditions in the first half of 2016, we now expect full year gold production at Veladero to be in the range of 580,000-640,000 ounces, down from our previous guidance of 630,000-690,000 ounces. All-in sustaining cost4 guidance remains unchanged at $790-$860 per ounce.

Copper

Copper production in the second quarter was 103 million pounds at a cost of sales of $79 million, and all-in sustaining costs9of $2.14 per pound. The Jabal Sayid project, a 50-50 joint venture with Saudi Arabian Mining Company (Ma'aden), commenced commercial production on July 1. Barrick's share of 2016 copper production from Jabal Sayid is expected to be 10-20 million pounds at all-in sustaining costs of $2.80-$3.10 per pound. The mine is expected to ramp up to a production rate of about 100 million pounds per year in the second half of 2017, as additional underground development is completed.

Reflecting the start of commercial production at Jabal Sayid, we have increased our copper production guidance for 2016 to 380-430 million pounds, up from our original guidance of 370-410 million pounds. For the full year, we expect cost of sales applicable to copper to be in the range of $275-$320 million. Copper all-in sustaining cost9 guidance remains unchanged at $1.95-$2.25 per pound.

In June 2016, the Zambian government passed legislation to amend the royalty tax for mining operations to a variable rate based on the prevailing copper price, effective June 1, 2016. These rates are four percent at copper prices below $2.04; five percent at copper prices between $2.04 and $2.72; and six percent at copper prices of $2.72 and above. Legislation was also passed to remove the 15 percent variable profit tax on income from mining companies. Our 2016 copper guidance takes into consideration the revised royalty rates commencing June 1.

BEST-IN-CLASS IN ACTION

Pueblo Viejo Autoclaves Case Study

Applying Creative Thinking and Knowledge to Unlock Potential

The key to unlocking the massive refractory ore body at Pueblo Viejo rests within four giant autoclaves-the largest ever used in the gold mining industry. Each autoclave weighs 780 tonnes, and is roughly 38 meters long and six meters in diameter-about as wide as a Boeing 747 fuselage. Improving the availability and throughput of the autoclaves has the potential to unlock substantial value for the mine.

Until recently, each autoclave has required, on average, a 22-day maintenance shutdown every six months. Large metal walls that separate the compartments inside each autoclave begin to fail as a result of the forces generated by continuous agitation of the ore slurry. A buckled or failed wall can interfere with normal operation, damaging the agitator blades and shafts, and accelerating the build-up of scale and sand, thereby requiring frequent maintenance.

Challenging and pushing past technical limits is a critical component of our Best-in-Class philosophy. Faced with this challenge, the team at Pueblo Viejo came up with a plan to increase autoclave availability and throughput by extending the period between maintenance shutdowns-from every six months, to every seven or potentially eight months.

To achieve this, the team applied Barrick's extensive autoclave operating experience to propose a number of critical modifications to the autoclaves. High oxidization rates inside the autoclaves implied the number of interior compartments could be reduced, thereby mitigating the build-up of scale, and the associated maintenance requirements. However, the remaining compartment walls would continue to fail at a similar rate, limiting the potential gains. To solve this problem, the team worked with an engineering partner to develop a new design for the interior compartment walls. The design better integrates the walls into the autoclaves using stronger titanium structure sections, improved bracing, and larger bolts.

The new walls have been successfully installed in two of the mine's four autoclaves. Initial results have been positive, indicating that increased run-time between shutdown maintenance is achievable. If successful in all four autoclaves, this initiative has the potential to increase throughput at Pueblo Viejo by 240,000 tonnes per year (100 percent basis), increasing autoclave availability from 84 percent to 86.5 percent-driving increased production, lower unit costs, and additional free cash flow from the operation. Other benefits include reducing materials cost for autoclave maintenance work (spare parts, valves, and ancillary equipment), and reducing contractor costs, due to fewer shutdowns per year.

Goldstrike Open Pit Haulage Case Study

When Challenging Conventional Wisdom Pays Off

Over nearly 30 years of managing one of the largest open pit gold mines in the world, conventional wisdom at Goldstrike suggested that the technical limit for open pit haul truck utilization was 79 percent, taking into account the mine runs two open pits seven miles apart. In simple terms, for every hour of potential operating time, the average truck achieved about 48 minutes of productive work time. At the end of 2015, the mine was operating a fleet of 29 Komatsu 930 haul trucks.

Motivated by a desire to challenge conventional wisdom in pursuit of Best-in-Class performance, the open pit team at Goldstrike evaluated how to increase haul truck availability to a level the mine had never achieved. Drawing on other experiences from across the industry, they came up with a concept that allows some haul trucks to be parked, while significantly increasing utilization of the trucks remaining in service. The secret was breaks-but not the brakes on the trucks. Typically, when haul truck drivers at Goldstrike were scheduled to take a break, they simply pulled over in a safe location and enjoyed a rest, usually spent inside the cab of the truck itself. This had trucks idling, rather than engaging in productive work.

Earlier this year, Goldstrike began testing a new system. The mine is in the process of installing a series of modular break rooms at strategic locations around the open pit where drivers can rest. While drivers are on break, relief drivers take over operation of the trucks. In just six months, the results have been impressive: a six percent improvement in haul truck utilization in the open pit, moving from 79 percent to 85 percent; and six haul trucks taken out of the fleet. Today, the mine is moving the same amount of material in the open pit, with fewer trucks. This initiative, combined with other improvement projects, has helped to reduce open pit mining costs at Goldstrike from $1.40 per tonne at the start of the year to $1.25 per tonne today. The shift to using properly-configured break rooms also increases safety, by promoting a more restful environment for operators.

As often happens, when you remove one bottleneck, other opportunities for improvement present themselves. The open pit team is now evaluating how to further optimize shovel use at the mine, matching the right shovels with the right haulage plans and ore types.

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 who is a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

 
APPENDIX 1 - Updated 2016 Operating and Capital Expenditure Guidance
 
GOLD PRODUCTION AND COSTS
    Production
(millions of ounces)
  Cost of sales
($ millions)
  All-in sustaining costs4
($ per ounce)
  Cash costs4
($ per ounce)
Cortez   0.980-1.050       520-550   430-450
Goldstrike   0.975-1.075       780-850   560-610
Pueblo Viejo (60%)   0.600-0.650       550-590   420-450
Lagunas Norte   0.410-0.450       580-630   410-450
Veladero   0.580-0.640       790-860   520-570
Sub-total   3.500-3.900       650-700   480-510
Porgera (47.5%)   0.230-0.260       850-960   650-730
Acacia (63.9%)   0.480-0.500       950-980   670-700
KCGM (50%)   0.350-0.365       670-700   610-630
Hemlo   0.215-0.230       800-850   650-690
Turquoise Ridge (75%)   0.240-0.260       640-700   480-520
Golden Sunlight   0.030-0.045       1,080-1,130   990-1,100
Total Gold   5.000-5.50011   5,200-5,500   750-790   540-570
                 
COPPER PRODUCTION AND COSTS
  Production
(millions of pounds)
Cost of sales
($ millions)
All-in sustaining costs9
($ per pound)
C1 cash costs9
($ per pound)
Zaldívar (50%) 100-120   2.20-2.40 1.70-1.90
Lumwana 270-290   1.80-2.10 1.20-1.50
Jabal Sayid (50%) 10-20   2.80-3.10 1.90-2.20
Total Copper 380-430 275-320 1.95-2.25 1.35-1.65
         
CAPITAL EXPENDITURES
    ($ millions)  
Mine site sustaining   1,100-1,200  
Project12   150-200  
Total Capital Expenditures   1,250-1,400  
       
 
APPENDIX 2 -2016 Outlook Assumptions and Economic Sensitivity Analysis
    2016 Guidance Assumption   Hypothetical
Change
  Impact on Revenue (millions)   Impact on
Cost of sales (millions)
  Impact on
All-in sustaining costs4,9
Gold revenue, net of royalties   $1,250/oz   +/- $100/oz   +/- $258   n/a   +/- $3/oz
Copper revenue, net of royalties   $2.10/lb   +/- $0.50/lb   +/- $98   n/a   +/- $0.03/lb
Gold all-in sustaining costs4                    
  Gold royalties & production taxes   $1,250/oz   +/- $100/oz   n/a   +/- $8   +/- $3/oz
  WTI crude oil price13   $50/bbl   +/- $10/bbl   n/a   +/- $3   +/- $1/oz
  Australian dollar exchange rate   0.73 : 1   +/- 10%   n/a   +/- $14   +/- $5/oz
  Canadian dollar exchange rate   1.30 : 1   +/- 10%   n/a   +/- $16   +/- $6/oz
Copper all-in sustaining costs9                    
  WTI crude oil price13   $50/bbl   +/- $10/bbl   n/a   +/- $2   +/- $0.01/lb
  Chilean peso exchange rate   690 : 1   +/- 10%   n/a   +/- $4   +/- $0.02/lb
                       
ENDNOTES
(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), 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 and unrealized gains (losses) on non-hedge derivative instruments. 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 http://www.sedar.com/ and on EDGAR at http://www.sec.gov/.
   
Reconciliation of Net Earnings to Adjusted Net Earnings and Adjusted Net Earnings per Share1  
($ millions, except per share amounts in dollars) For the three months ended June 30     For the six months ended June 30  
  2016     2015     2016     2015  
Net earnings (loss) attributable to equity holders of the company $ 138     $ (9 )   $ 55     $ 48  
Impairment charges related to intangibles, goodwill, property, plant and equipment, and investments   4       35       5       40  
Acquisition/disposition (gains)/losses   (11 )     (2 )     (2 )     (26 )
Foreign currency translation losses   23       33       162       31  
Significant tax adjustments3   3       26       54       32  
Other expense adjustments4   6       2       74       28  
Unrealized gains on non-hedge derivative instruments   (5 )     3       (11 )     4  
Tax effect and non-controlling interest   -       (28 )     (52 )     (35 )
Adjusted net earnings $ 158     $ 60     $ 285     $ 122  
Net earnings (loss) per share2   0.12       (0.01 )     0.05       0.04  
Adjusted net earnings per share2   0.14       0.05       0.24       0.10  
1   Amounts presented in this table are pre-tax and non-controlling interest.
2   Calculated using weighted average number of shares outstanding under the basic method of earnings per share.
3   Significant tax adjustments for the current year primarily relate to a tax provision booked by Acacia in Q1 2016.
4   Other expense adjustments for the current year relate to losses on debt extinguishment and the impact of the decrease in the discount rate used to calculate the provision for environmental remediation at our closed mines.
     
2   "EBITDA" and "adjusted EBITDA" are non-GAAP financial performance measures. EBITDA excludes income tax expense, finance costs, finance income and depreciation from net earnings. Barrick believes that EBITDA is a valuable indicator of our ability to generate liquidity by producing operating cash flow. EBITDA is also frequently used by investors and analysts for valuation purposes. Adjusted EBITDA removes the effect of "impairment charges" which are not reflective of our ability to generate liquidity by producing operating cash flow. EBITDA and adjusted EBITDA 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 http://www.sedar.com/ and on EDGAR at http://www.sec.gov/.
     
   
Reconciliation of Net Earnings to EBITDA and Adjusted EBITDA  
   
($ millions, except per share amounts in dollars)   For the three months ended June 30     For the six months ended June 30  
    2016     2015     2016     2015  
Net earnings (loss)   $ 176     $ (9 )   $ 104     $ 80  
  Income tax expense     173       103       359       208  
  Finance costs, net1     150       177       347       355  
  Depreciation     382       419       767       840  
EBITDA   $ 881     $ 690     $ 1,577     $ 1,483  
Impairment charges     4       35       5       40  
Adjusted EBITDA   $ 885     $ 725     $ 1,582     $ 1,523  
Reported as:                                
Cortez   $ 190     $ 117     $ 402     $ 178  
Goldstrike     160       100       294       218  
Pueblo Viejo     193       161       419       367  
Lagunas Norte     96       136       179       281  
Veladero     87       93       159       192  
Turquoise Ridge     46       32       72       61  
Acacia     134       70       210       136  
Other     (21 )     16       (153 )     90  
Impairment charges     (4 )     (35 )     (5 )     (40 )
EBITDA   $ 881     $ 690     $ 1,577     $ 1,483  
Impairment charges     4       35       5       40  
Adjusted EBITDA   $ 885     $ 725     $ 1,582     $ 1,523  
1   Finance costs exclude accretion.
     
3   "Free cash flow" is a non-GAAP financial performance measure which excludes 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.
   
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow  
($ millions)   For the three months ended June 30     For the six months ended June 30  
    2016     2015     2016     2015  
Net cash provided by operating activities   $ 527     $ 525     $ 978     $ 841  
Capital expenditures     (253 )     (499 )     (523 )     (1,013 )
Free cash flow   $ 274     $ 26     $ 455     $ (172 )
                                 
     
4   "Cash costs" per ounce and "All-in sustaining costs" per ounce are non-GAAP financial performance measures. "Cash costs" per ounce is based on cost of sales but excludes, among other items, the impact of depreciation. "All-in sustaining costs" per ounce begins with "Cash costs" per ounce and adds further costs which reflect the additional costs of operating a mine, primarily sustaining capital expenditures, general & administrative costs and minesite exploration and evaluation costs. 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 18 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 http://www.sedar.com/ and on EDGAR at http://www.sec.gov/.
     
   
Reconciliation of Gold Cost of Sales to Cash costs per ounce, All-in sustaining costs per ounce and All-in costs per ounce  
        For the three months ended June 30,     For the six months ended June 30,  
    Footnote   2016     2015     2016     2015  
Cost of sales related to gold production       $ 1,227     $ 1,413     $ 2,430     $ 2,838  
  Depreciation         (365 )     (378 )     (734 )     (752 )
  By-product credits   1     (46 )     (53 )     (84 )     (112 )
  Realized (gains)/losses on hedge and non-hedge derivatives   2     26       27       57       47  
  Non-recurring items   3     -       -       (10 )     -  
  Other   4     (6 )     7       (15 )     15  
  Non-controlling interests (Pueblo Viejo and Acacia)         (90 )     (100 )     (175 )     (212 )
Cash costs       $ 746     $ 916     $ 1,469     $ 1,824  
  General & administrative costs         88       70       146       137  
  Minesite exploration and evaluation costs   6     9       16       16       25  
  Minesite sustaining capital expenditures   7     235       361       410       714  
  Rehabilitation - accretion and amortization (operating sites)   5     14       40       25       76  
  Non-controlling interest, copper operations and other   8     (82 )     (90 )     (132 )     (161 )
All-in sustaining costs       $ 1,010     $ 1,313     $ 1,934     $ 2,615  
      Project exploration and evaluation and project costs   6     47       81       95       158  
    Community relations costs not related to current operations         3       4       5       7  
      Project capital expenditures   7     49       45       89       139  
  Rehabilitation - accretion and amortization (non-operating sites)   5     3       3       5       6  
      Non-controlling interest and copper operations   8     (15 )     (11 )     (31 )     (15 )
All-in costs       $ 1,097     $ 1,435     $ 2,097     $ 2,910  
Ounces sold - equity basis (000s ounces)   10     1,292       1,466       2,598       2,851  
Cash costs per ounce1       $ 578     $ 624     $ 565     $ 640  
Cash costs per ounce (on a co-product basis)1   9   $ 605     $ 648     $ 591     $ 666  
All-in sustaining costs per ounce1       $ 782     $ 895     $ 744     $ 918  
All-in sustaining costs per ounce (on a co-product basis)1   9   $ 809     $ 919     $ 770     $ 944  
All-in costs per ounce1       $ 849     $ 978     $ 807     $ 1,021  
All-in costs per ounce (on a co-product basis)1   9   $ 876     $ 1,002     $ 833     $ 1,047  
1   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   Other sales
    Revenues include the sale of by-products for our gold and copper mines for the three months ended June 30, 2016 of $32 million (2015: $33 million) and the six months ended June 30, 2016 of $60 million (2015: $74 million) and energy sales from the Monte Rio power plant at our Pueblo Viejo Mine for the three months ended June 30, 2016 of $14 million (2015: $20 million) and the six months ended June 30, 2016 of $24 million (2015: $38 million).
2   Realized (gains)/losses on hedge and non-hedge derivatives
    Includes realized hedge losses of $20 million and $44 million (2015: $21 million and $42 million, respectively) for the three and six months ended June 30, 2016, respectively, and realized non-hedge losses of $6 million and $13 million (2015: $6 million and $5 million, respectively) for the three and six months ended June 30, 2016, respectively. Refer to Note 5 of the Financial Statements for further information.
3   Non-recurring items
    Non-recurring items consist of $10 million in abnormal costs at Veladero. These costs are not indicative of our cost of production and have been excluded from the calculation of cash costs.
4   Other
    Other adjustments include adding the net margins related to power sales at Pueblo Viejo of $2 million and $4 million, respectively, (2015: $5 million and $10 million, respectively) and adding the cost of treatment and refining charges of $4 million and $9 million, respectively (2015: $3 million and $6 million, respectively). 2016 includes the removal of costs associated with our Pierina mine which is mining incidental ounces as it enters closure of $12 million and $28 million, respectively.
5   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.
6   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 27 of Barrick's Second Quarter 2016 MD&A.
7   Capital expenditures
    Capital expenditures are related to our gold sites only and are presented on a 100 percent 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 Arturo and Cortez Lower Zone. Refer to page 26 of Barrick's Second Quarter 2016 MD&A.
8   Non-controlling interest and copper operations
    Removes general & administrative costs of $12 million and $22 million, respectively, for the three and six months ended June 30, 2016 (2015: $14 million and $26 million, respectively), exploration, evaluation and project costs of $4 million and $10 million, respectively (2015: $3 million and $7 million, respectively), rehabilitation costs of $2 million and $3 million, respectively (2015: $3 million and $5 million, respectively) and capital expenditures of $78 million and $129 million, respectively (2015: $79 million and $137 million, respectively) that are related to our copper sites and the non-controlling interest of our Acacia and Pueblo Viejo operating segment and Arturo. In 2016, figures remove the impact of Pierina.
9   Costs per ounce
    Amounts presented on a co-product basis remove from cost per ounce calculations the impact of other metal sales (net of non-controlling interest) that are produced as a by-product of our gold production.
10   Ounces sold - equity basis
    In 2016, figures remove the impact of Pierina as the mine is currently going through closure.
     
     
5   Comparison based on the total reserves and resources and average overall reserve grade for Goldcorp Inc., Kinross Gold Corporation, Newmont Mining Corporation, and Newcrest Mining Limited, as reported in each of the reserve reports for Goldcorp Inc., Kinross Gold Corporation, Newmont Mining Corporation, and Newcrest Mining Limited as of December 31, 2015.
     
6   Includes $699 million cash held at Acacia and Pueblo Viejo, which may not be readily deployed outside of Acacia and/or Pueblo Viejo.
     
7   Amount excludes capital leases and includes project financing payments at Pueblo Viejo (60 percent basis) and Acacia (100 percent basis).
     
8   Barrick's share.
     
9   "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 http://www.sedar.com/ and on EDGAR at http://www.sec.gov/.
   
Reconciliation of Copper Cost of Sales to C1 cash costs per pound and All-in sustaining costs per pound  
($ millions, except per pound information in dollars)   For the three months ended June 30     For the six months ended June 30  
    2016     2015     2016     2015  
Cost of sales   $ 79     $ 238     $ 169     $ 489  
  Depreciation/amortization     (9 )     (26 )     (20 )     (63 )
  Treatment and refinement charges     38       41       84       83  
  Cost of sales applicable to equity method investments1     43       -       84       -  
  Less: royalties     (10 )     (36 )     (25 )     (69 )
C1 cash cost of sales   $ 141     $ 217     $ 292     $ 440  
  General & administrative costs     5       5       12       12  
  Rehabilitation - accretion and amortization     2       2       3       4  
  Royalties     10       36       25       69  
  Minesite sustaining capital expenditures     41       44       70       71  
All-in sustaining costs   $ 199     $ 304     $ 402     $ 596  
Pounds sold - consolidated basis (millions pounds)     93       112       196       233  
C1 cash cost per pound2   $ 1.52     $ 1.94     $ 1.49     $ 1.89  
All-in sustaining costs per pound2   $ 2.14     $ 2.72     $ 2.05     $ 2.56  
1   For the three and six month periods ended June 30, 2016, figures include $43 million and $84 million, respectively, of cash costs related to our 50 percent share of Zaldívar due to the divestment of 50 percent of our interest in the mine on December 1, 2015 and subsequent accounting as an equity method investment.
2   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.
     
     
10   Barrick's share on an accrued basis.
     
11   Operating unit guidance ranges for production reflect expectations at each individual operating unit, but do not add up to corporate-wide guidance range total.
     
12   We have combined our previous capital expenditure categories of Minesite expansion and Projects into one category called Project.
     
13   Due to our fuel hedging activities, which are reflected in these sensitivities, we are partially protected against changes in this factor.
     
   
Key Statistics  
Barrick Gold Corporation                    
(in United States dollars)   Three months ended June 30,     Six months ended June 30,  
    2016   2015     2016   2015  
                             
Financial Results (millions)                            
Revenues   $ 2,012   $ 2,231     $ 3,942   $ 4,476  
Cost of sales     1,336     1,689       2,660     3,397  
Net earnings (loss)1     138     (9 )     55     48  
Adjusted net earnings2     158     60       285     122  
Adjusted EBITDA2     885     725       1,582     1,523  
Total project capital expenditures3     50     53       90     157  
Total capital expenditures - sustaining3     234     361       409     713  
Operating cash flow     527     525       978     841  
Free cash flow2     274     26       455     (172 )
                             
Per Share Data (dollars)                            
  Net earnings (loss) (basic and diluted)     0.12     (0.01 )     0.05     0.04  
  Adjusted net earnings (basic)2     0.14     0.05       0.24     0.10  
                             
Weighted average basic and diluted common shares (millions)     1,165     1,165       1,165     1,165  
                             
Operating Results                            
Gold production (thousands of ounces)4     1,340     1,445       2,620     2,835  
Gold sold (thousands of ounces)4     1,292     1,466       2,598     2,851  
                             
Per ounce data                            
  Average spot gold price   $ 1,260   $ 1,192     $ 1,221   $ 1,206  
  Average realized gold price2     1,259     1,190       1,219     1,204  
  All-in sustaining costs2     782     895       744     918  
                             
Copper production (millions of pounds)5     103     115       214     233  
Copper sold (millions of pounds)     93     112       196     233  
                             
Per pound data                            
  Average spot copper price   $ 2.14   $ 2.74     $ 2.13   $ 2.69  
  Average realized copper price2     2.14     2.66       2.16     2.60  
  All-in sustaining costs2     2.14     2.72       2.05     2.56  
                             
                             
                    As at
June
30,
    As at December
31,
 
                    2016     2015  
                             
Financial Position (millions)                            
Cash and equivalents                 $ 2,441   $ 2,455  
Working capital (excluding cash)                   1,344     1,310  
     
1   Net earnings (loss) represents net earnings attributable to the equity holders of the Company.
2   Realized price, all-in sustaining costs, adjusted net earnings, adjusted EBITDA and free cash flow 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 42 - 49 of this MD&A.
3   Amounts presented on a 100% 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.
4   Production includes Acacia on a 63.9% basis and Pueblo Viejo on a 60% basis, both of which reflect our equity share of production. Also includes production from Bald Mountain and Round Mountain up to January 11, 2016, the effective date of sale of the assets. 2015 includes production from Porgera on a 95% basis whereas 2016 figures are on a 47.5% basis reflecting the sale of 50% of Porgera in third quarter 2015. Sales include our equity share of gold sales from Acacia and Pueblo Viejo.
5   In 2016, reflects production from Jabal Sayid and Zaldívar on a 50% basis, which reflects our equity share of production, and 100% of Lumwana. 2015 production includes Zaldívar on a 100% basis prior to the sale of 50% of the mine in fourth quarter 2015, and 100% of Lumwana.
     
 
Production and Cost Summary
  Gold Production
(attributable ounces)
(000s)
  Gold Cost of Sales
(in millions of USD)
  All-in sustaining costs5
($/oz)
  Three months
ended
  Six months
ended
  Three months
ended
  Six months
ended
  Three months
ended
  Six months
ended
   June 30,    June 30,    June 30,    June 30,    June 30,    June 30,
  2016   2015   2016   2015   2016   2015   2016   2015   2016   2015   2016   2015
Gold                                                              
  Goldstrike 263   206   512   413   $ 219   $ 113   $ 431   $ 262   $ 737   $ 732     722   $ 811
  Cortez 248   193   495   326     239     195     491     391     558     811     511     877
  Pueblo Viejo1 150   131   322   266     173     224     340     455     634     682     559     673
  Lagunas Norte 124   155   224   333     77     103     145     202     585     509     571     483
  Veladero 119   151   251   300     100     110     205     238     744     961     709     978
  Turquoise Ridge 79   52   129   101     34     37     69     68     621     780     668     747
  Acacia2 141   119   263   235     180     187     349     361     926     1,149     941     1,133
  Other Mines - Gold3 216   438   424   861     205     444     400     861     786     950     775     977
Total 1,340   1,445   2,620   2,835   $ 1,227   $ 1,413   $ 2,430   $ 2,838   $ 782   $ 895   $ 744   $ 918
  Copper Production
(attributable pounds)4
(millions)
  Copper Cost of Sales
(in millions of USD)
  All-in sustaining costs5
($/lb)
  Three months
ended
  Six months
ended
  Three months
ended
  Six months
ended
  Three months
ended
  Six months
ended
  June 30,   June 30,   June 30,   June 30,   June 30,   June 30,
  2016   2015   2016   2015   2016   2015   2016   2015   2016   2015   2016   2015
Total 103   115   214   233   $ 79   $ 238   $ 169   $ 489   $ 2.14   $ 2.72   $ 2.05   $ 2.56
   
  Total Gold Costs ($/oz)  
  Three months ended   Six months ended  
  June 30,   June 30,  
  2016   2015   2016   2015  
  Direct mining costs before impact of hedges at market foreign exchange rates $ 550   $ 601   $ 538   $ 618  
  Losses realized on currency hedge and commodity hedge/economic hedge contracts   20     15     21     14  
  By-product credits   (27 )   (24 )   (26 )   (26 )
  Royalties   35     32     32     34  
Cash costs5   578     624     565     640  
  Depreciation   253     231     253     234  
Total production costs $ 831   $ 855   $ 818   $ 874  
Cash costs5 $ 578   $ 624   $ 565   $ 640  
  General & administrative costs   68     48     56     48  
  Rehabilitation - accretion and amortization (operating sites)   11     27     10     27  
  Mine on-site exploration and evaluation costs   7     11     6     9  
  Minesite sustaining capital expenditures   182     246     158     250  
  Non-controlling interest, copper operations and other   (64)     (61)     (51)     (56)  
All-in sustaining costs5 $ 782   $ 895   $ 744   $ 918  
All-in costs5 $ 849   $ 978   $ 807   $ 1,021  
1   Reflects production from Pueblo Viejo on a 60% basis, which reflects our equity share of production.
2   Reflects production from Acacia on a 63.9% basis, which reflects our equity share of production.
3   In 2016, Other Mines - Gold includes Golden Sunlight, Hemlo, Porgera on a 47.5% basis and Kalgoorlie. Also includes production from Bald Mountain and Round Mountain up to January 11, 2016, the effective date of sale of these assets. In 2015, Other Mines - Gold included Bald Mountain, Round Mountain, Golden Sunlight, Hemlo, Pierina, Cowal, Ruby Hill, Porgera on a 95% basis, and Kalgoorlie.
4   In 2016, reflects production from Jabal Sayid and Zaldívar on a 50% basis, which reflects our equity share of production, and 100% of Lumwana. 2015 production includes Zaldívar on a 100% basis prior to the sale of 50% of the mine in fourth quarter 2015, and 100% of Lumwana.
5   Cash costs, all-in sustaining costs, and all-in costs 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 42 - 49 of this MD&A.
     
 
Consolidated Statements of Income          
Barrick Gold Corporation    
(in millions of United States dollars, except per share data) (Unaudited)      Three months ended        Six months ended  
          June 30,           June 30,  
    2016     2015     2016     2015  
                                 
Revenue (notes 5 and 6)   $ 2,012     $ 2,231     $ 3,942     $ 4,476  
Costs and expenses (income)                                
Cost of sales (notes 5 and 7)     1,336       1,689       2,660       3,397  
General and administrative expenses     88       70       146       137  
Exploration, evaluation and project expenses     56       97       111       183  
Impairment charges     4       35       5       40  
Loss on currency translation (note 9B)     23       33       162       31  
Closed mine rehabilitation     7       (19 )     30       (11 )
Income from equity investees     (3 )     -       (8 )     -  
(Gain) loss on non-hedge derivatives     1       8       (3 )     11  
Other expense (income) (note 9A)     (11 )     32       3       14  
Income before finance costs and income taxes   $ 511     $ 286     $ 836     $ 674  
Finance costs, net     (162 )     (192 )     (373 )     (386 )
Income before income taxes   $ 349     $ 94     $ 463     $ 288  
Income tax expense (note 10)     (173 )     (103 )     (359 )     (208 )
Net income (loss)   $ 176     $ (9 )   $ 104     $ 80  
Attributable to:                                
Equity holders of Barrick Gold Corporation   $ 138     $ (9 )   $ 55     $ 48  
Non-controlling interests (note 15)   $ 38     $ -     $ 49     $ 32  
                                 
Earnings (loss) per share data attributable to the equity holders of Barrick Gold Corporation (note 8)                  
Net income (loss)                                
  Basic   $ 0.12     $ (0.01 )   $ 0.05     $ 0.04  
  Diluted   $ 0.12     $ (0.01 )   $ 0.05     $ 0.04  
                                 
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2016 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     Six months ended  
        June 30,         June 30,  
    2016   2015     2016   2015  
Net income (loss)   $ 176   $ (9 )   $ 104   $ 80  
Other comprehensive income (loss), net of taxes                            
                             
Movement in equity investments fair value reserve:                            
Net unrealized change on equity investments, net of tax $nil, $nil, $nil and $nil     10     (6 )     11     (11 )
Net realized change on equity investments, net of tax $nil, $nil, $nil and $nil     -     1       -     18  
                             
Items that may be reclassified subsequently to profit or loss:                            
Unrealized gains (losses) on derivatives designated as cash flow hedges, net of tax ($8), ($13), ($7) and $1     22     24       12     (33 )
Realized losses on derivatives designated as cash flow hedges, net of tax ($2), $1, ($4) and $nil     18     36       36     51  
Currency translation adjustments, net of tax $nil, $nil, $nil and $nil     2     2       93     (30 )
Total other comprehensive income (loss)     52     57       152     (5 )
Total comprehensive income   $ 228   $ 48     $ 256   $ 75  
Attributable to:                            
Equity holders of Barrick Gold Corporation   $ 190   $ 48     $ 207   $ 43  
Non-controlling interests   $ 38   $ -     $ 49   $ 32  
                             
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2016 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     Six months ended  
          June 30,           June 30,  
    2016     2015     2016     2015  
OPERATING ACTIVITIES                                
Net income (loss)   $ 176     $ (9 )   $ 104     $ 80  
Adjusted for the following items:                                
  Depreciation     382       419       767       840  
  Finance costs     165       194       380       390  
  Impairment charges     4       35       5       40  
  Income tax expense (note 10)     173       103       359       208  
  (Gain) loss on non-hedge derivatives     1       8       (3 )     11  
  Gain on sale of long-lived assets     (11 )     (2 )     (2 )     (26 )
  Change in working capital (note 11)     (167 )     40       (350 )     (235 )
  Other operating activities (note 11)     133       40       232       82  
Operating cash flows before interest and income taxes     856       828       1,492       1,390  
Interest paid     (201 )     (274 )     (268 )     (349 )
Income taxes paid     (128 )     (29 )     (246 )     (200 )
Net cash provided by operating activities     527       525       978       841  
INVESTING ACTIVITIES                                
Property, plant and equipment                                
    Capital expenditures (note 5)     (253 )     (499 )     (523 )     (1,013 )
    Sales proceeds     6       7       10       19  
Divestitures (note 4)     (22 )     -       588       2  
Investments sales     -       -       -       33  
Other investing activities     (3 )     (6 )     (6 )     (7 )
Net cash (used in) provided by investing activities     (272 )     (498 )     69       (966 )
FINANCING ACTIVITIES                                
Debt                                
    Proceeds     -       3       3       5  
    Repayments     (127 )     (88 )     (980 )     (272 )
Dividends     (21 )     (58 )     (43 )     (116 )
Funding from non-controlling interests     14       21       27       22  
Disbursements to non-controlling interests     -       (20 )     (31 )     (64 )
Debt extinguishment costs     (3 )     -       (40 )     -  
Net cash used in financing activities     (137 )     (142 )     (1,064 )     (425 )
Effect of exchange rate changes on cash and equivalents     -       (1 )     3       (7 )
Net increase (decrease) in cash and equivalents     118       (116 )     (14 )     (557 )
Cash and equivalents at the beginning of period     2,323       2,258       2,455       2,699  
Cash and equivalents at the end of period   $ 2,441     $ 2,142     $ 2,441     $ 2,142  
Less: cash and equivalents of assets classified as held for sale at the end of period     -       20       -       20  
Cash and equivalents excluding assets classified as held for sale at the end of period   $ 2,441     $ 2,122     $ 2,441     $ 2,122  
                                 
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2016 available on our website are an integral part of these consolidated financial statements.  
   
 
Consolidated Balance Sheets
Barrick Gold Corporation
(in millions of United States dollars) (Unaudited)   As at
June 30,
    As at
December 31,
 
    2016     2015  
ASSETS                
Current assets                
  Cash and equivalents (note 12A)   $ 2,441     $ 2,455  
  Accounts receivable     491       275  
  Inventories     1,701       1,717  
  Other current assets     239       263  
Total current assets (excluding assets classified as held for sale)   $ 4,872     $ 4,710  
  Assets classified as held for sale     -       758  
Total current assets   $ 4,872     $ 5,468  
                 
Non-current assets                
  Equity in investees     1,218       1,199  
  Property, plant and equipment     14,284       14,434  
  Goodwill     1,371       1,371  
  Intangible assets     269       271  
  Deferred income tax assets     1,016       1,040  
  Non-current portion of inventory     1,566       1,502  
  Other assets     1,008       1,023  
Total assets   $ 25,604     $ 26,308  
LIABILITIES AND EQUITY                
Current liabilities                
  Accounts payable   $ 1,120     $ 1,158  
  Debt (note 12B)     175       203  
  Current income tax liabilities     124       -  
  Other current liabilities     301       337  
Total current liabilities (excluding liabilities classified as held for sale)   $ 1,720     $ 1,698  
  Liabilities classified as held for sale     -       149  
Total current liabilities   $ 1,720     $ 1,847  
                 
Non-current liabilities                
  Debt (note 12B)     8,825       9,765  
  Provisions     2,343       2,102  
  Deferred income tax liabilities     1,502       1,553  
  Other liabilities     1,554       1,586  
Total liabilities   $ 15,944     $ 16,853  
Equity                
  Capital stock (note 14)   $ 20,873     $ 20,869  
  Deficit     (13,634 )     (13,642 )
  Accumulated other comprehensive loss     (218 )     (370 )
  Other     321       321  
Total equity attributable to Barrick Gold Corporation shareholders   $ 7,342     $ 7,178  
  Non-controlling interests (note 15)     2,318       2,277  
Total equity   $ 9,660     $ 9,455  
Contingencies and commitments (notes 5 and 16)                
Total liabilities and equity   $ 25,604     $ 26,308  
                 
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2016 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 January 1, 2016   1,165,081   $ 20,869   $ (13,642 )   $ (370 )   $ 321   $ 7,178     $ 2,277     $ 9,455  
  Net income   -     -     55       -       -     55       49       104  
  Total other comprehensive income   -     -     -       152       -     152       -       152  
  Total comprehensive income   -     -     55       152       -     207       49       256  
  Transactions with owners                                                        
    Dividends   -     -     (43 )     -       -     (43 )     -       (43 )
    Funding from non-controlling interests   -     -     -       -       -     -       27       27  
    Other decrease in non-controlling interest   -     -     -       -       -     -       (35 )     (35 )
    Dividend reinvestment plan (note 14)   250     4     (4 )     -       -     -       -       -  
  Total transactions with owners   250     4     (47 )     -       -     (43 )     (8 )     (51 )
At June 30, 2016   1,165,331   $ 20,873   $ (13,634 )   $ (218 )   $ 321   $ 7,342     $ 2,318     $ 9,660  
                                                         
At January 1, 2015   1,164,670   $ 20,864   $ (10,640 )   $ (298 )   $ 321   $ 10,247     $ 2,615     $ 12,862  
  Net income   -     -     48       -       -     48       32       80  
  Total other comprehensive loss   -     -     -       (5 )     -     (5 )     -       (5 )
  Total comprehensive income (loss)   -     -     48       (5 )     -     43       32       75  
  Transactions with owners                                                        
    Dividends   -     -     (116 )     -       -     (116 )     -       (116 )
    Recognition of stock option expense   -     1     -       -       -     1       -       1  
    Funding from non-controlling interests   -     -     -       -       -     -       22       22  
    Other decrease in non-controlling interests   -     -     -       -       -     -       (66 )     (66 )
    Other decreases   -     -     (6 )     -       -     (6 )     -       (6 )
  Total transactions with owners   -     1     (122 )     -       -     (121 )     (44 )     (165 )
At June 30, 2015   1,164,670   $ 20,865   $ (10,714 )   $ (303 )   $ 321   $ 10,169     $ 2,603     $ 12,772  
1   Includes cumulative translation losses at June 30, 2016: $85 million (June 30, 2015: $152 million).
2   Includes additional paid-in capital as at June 30, 2016: $283 million (December 31, 2015: $283 million; June 30, 2015: $283 million) and convertible borrowings - equity component as at June 30, 2016: $38 million (December 31, 2015: $38 million; June 30, 2015: $38 million).
The notes to these unaudited condensed interim financial statements, which are contained in the Second Quarter Report 2016 available on our website are an integral part of these consolidated financial statements.
 
   
HEAD OFFICE TRANSFER AGENTS AND REGISTRARS
Barrick Gold Corporation CST Trust Company
Brookfield Place P.O. Box 700, Postal Station B
TD Canada Trust Tower Montreal, Quebec  H3B 3K3
161 Bay Street, Suite 3700 or
Toronto, Ontario  M5J 2S1 American Stock Transfer & Trust Company, LLC
Telephone: +1 416 861-9911 6201 - 15 Avenue
Toll-free: 1-800-720-7415 Brooklyn, New York  11219
Fax: +1 416 861-2492  
Email:  [email protected] Telephone:  1-800-387-0825
Website:  www.barrick.com Fax:  1-888-249-6189
   
SHARES LISTED Email:  [email protected]
ABX - The New York Stock Exchange Website:  www.canstockta.com
The Toronto Stock Exchange  
   

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained or incorporated by reference in this Second Quarter Report 2016, 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", "contemplate", "target", "plan", "objective", "aspiration", "aim", "intend", "project", "goal", "continue", "budget", "estimate", "potential", "may", "will", "can", "should", "could", "would", and similar expressions identify forward-looking statements. In particular, this Second Quarter Report 2016 contains forward-looking statements including, without limitation, with respect to: (i) Barrick's forward-looking production guidance; (ii) estimates of future cost of sales for gold and copper; all-in-sustaining costs per ounce/pound, cash costs per ounce and C1 cash costs per pound; (iii) cash flow forecasts; (iv) projected capital, operating and exploration expenditures; (v) targeted debt and cost reductions; (vi) targeted investments by Barrick's Growth Group; (vii) mine life and production rates; (viii) potential mineralization and metal or mineral recoveries; (ix) Barrick's Best-in-Class program (including potential improvements to financial and operating performance at Barrick's Pueblo Viejo and Goldstrike mines that may result from certain Best-in-Class initiatives); (x) timing and completion of acquisitions; (xi) non-core asset sales or joint ventures; and (xii) 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; 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 and investments targeted by the Growth Group will meet the company's capital allocation objectives; 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 does 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; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; litigation; 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; 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 shortage, 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 Second Quarter Report 2016 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.

INVESTOR CONTACTS: Angela Parr
Vice President, Investor Relations
+1 416 307-7426
[email protected]

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


Source: Marketwired (July 27, 2016 - 5:05 PM EDT)

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