Africa's natural resources endowment positions it to be the next global economic engine - Mine Africa March 2021
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Africa’s natural resources endowment positions it to be the next global economic engine… Mine Africa March 2021
Cautionary statement… Certain information contained or incorporated by reference in this presentation, 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 “expect”, “target”, “plan”, “opportunities”, “pursuit”, “assume”, “project”, “continue”, “budget”, “estimate”, “potential”, “strategy”, “prospective”, “following”, “future”, “aim”, “may”, “will”, “can”, “could”, “would” and similar expressions identify forward-looking statements. In particular, this presentation contains forward-looking statements including, without limitation, with respect to: Barrick’s strategic focus on natural resources endowment positions in Africa and the potential for Africa to be the next global economic engine; potential mineralization and metal or mineral recoveries; our ability to identify, invest in and develop potential Tier One, Tier Two and Strategic Assets; our strategies and plans with respect to environmental matters, including climate change; greenhouse gas emissions reduction targets; our future plans, growth potential, financial strength, investments and overall strategy, including with respect to dispositions of non-core assets, and our participation in future consolidation of the gold industry; our ability to convert resources into reserves; our economic and social development priorities within our host communities, including local hiring, procurement, training and community development initiatives; and 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 presentation 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; 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; 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 African 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; risks associated with illegal and artisanal mining; risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic; 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; business opportunities that may be presented to, or pursued by, the Company; and risks associated with working with partners in jointly controlled asset. 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 presentation 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 presentation. We disclaim 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.
To be world class, we need to be global…
ii
i In Q1 2020, Barrick sold its stake in Massawa to Teranga Gold (“Teranga”) and retained an 11% equity interest in Teranga. In February 2021, Endeavour Mining and Teranga merged. ii In Q1 2021, Barrick announced the sale of Lagunas Norte to Boroo Pte Ltd (Singapore).
Africa’s Mineral Endowment…
Africa is a massive contributor to the global mining industry, supplying over 25 million ounces of gold and 1.1 million tonnes of copper in
2020 in addition to significant production of numerous other critical mineral commodities
Map of Major African Natural Resource Production and Potential Africa’s Critical Share of Mineral Production and Reserves
2020e Production Reserves
Aluminium / Bauxite
DRC
Petroleum Cobalt
Petroleum Gold & Cobalt Other African 68% 3% 29% 51% 2% 47%
Petroleum
Other Countries
Copper
Gold &
Iron Ore Gold Uranium
Petroleum Gold & South Africa
Petroleum
Diamonds
2E PGMs Zimbabwe 50% 7% 43% 91% 2% 7%
Petroleum
Petroleum Gold Gold Other Countries
Gold Diamonds
Gold Graphite South Africa
Copper,
Cobalt, & Chromium 40% 60% 35% 65%
Diamonds Other Countries
Gold Iron Ore
South Africa
Diamonds Petroleum
Copper Gabon
Manganese 28% 15% 10% 47% 40% 5% 54%
Other African
Diamonds Phosphates
Other Countries
Diamonds
PGMs
Guinea
Gold &
PGMs Bauxite 22% 78% 25% 75%
Uranium Other Countries
Source: USGS, AME Group. S&P Global Intelligence Source: USGS
Africa is Underexplored and
Highly-Prospective…
Gold Reserves By Regioni Copper Reserves By Regioni Total 2020 Exploration Budget Allocationi
Contained Au (Moz) Au Grade (g/t)) Contained Cu (Mt) Cu Grade (%)
Europe, 6%
1.26
1.03
0.88 0.76% 0.78% Africa &
0.65 0.60%
0.46% Middle East,
0.26
0.30% 13%
589
379
356
315 301
191 178 Latin America
& Caribbean,
82 76
46 25%
Asia-Pacific United States & Latin America & Africa & Middle Europe Latin America & Asia-Pacific United States & Africa & Middle Europe
Canada Caribbean East Caribbean Canada East
Gold Resources By Regioni Copper Resources By Regioni United States
& Canada,
27%
1.61
0.92%
0.59 0.51 0.59
0.27 0.48% 0.55%
0.40%
0.31%
2,107
1,439
1,407 1,366
1,228
Asia-Pacific,
674 30%
529 357 253 199
Asia-Pacific United States & Africa & Middle Latin America & Europe Latin America & Asia-Pacific United States & Africa & Middle Europe
Canada East Caribbean Caribbean Canada East
i Russia is included within Asia-Pacific. Source: S&P Global Intelligence
Mega gas fields…a prospect of stronger,
cleaner energy supply
Oil
Natural Gas
Resource rich
Resource poor
No recorded natural
gas reserves
Source: PwC Africa Oil & Gas Review 2019
Africa has the world’s youngest population…
Select Age Groups
45 by continent
40
Under 15 Years Over 65 Years
35
30
25
20
15
10
5
0
Source: CIA World Factbook, Gates Notes, Statista, 2018
Infrastructure Can Unlock the Full
Potential of Africa…
Access to Key Infrastructure in Sub-Saharan Africa
Africa’s infrastructure severely lags behind the rest of the
Sub-Saharan Africa North America European Union
world, including in key areas such as energy,
communications, transportation, and water infrastructure Individuals using the Internet Electric power consumption
100%
(% of population) 16,000
(kWh per capita)
According to the World Bank, Sub-Saharan Africa ranks at 90% 88% 14,000
84%
the bottom of all developing regions in virtually all 80%
12,000
dimensions of infrastructure performance
70%
60% 10,000
50% 8,000
Despite historical challenges, infrastructure investment in 40% 6,000
Africa has been increasing steadily in recent years 30%
25% 4,000
20%
Closing the infrastructure gap with the rest of the world 10% 2,000
presents a tremendous opportunity to unlock the full potential 0% 0
of the African continent and its immense mineral endowment
People using safely managed drinking Access to electricity (% of population)
DRC Case Study 100%
water services (% of population)
100%
90% 90%
80% 80%
Of 153,497km of roads, only 70% 70%
2,794km are paved. There are 60% 60%
around 4,000 km of railways but 50% 50% 48%
much is narrow-gauge track and 40% 40%
in poor condition. Waterways are 30% 27% 30%
20% 20%
vital to transport goods but 10% 10%
journeys can take months to 0% 0%
complete. Overcrowded boats
frequently capsize.
Source: World Bank
Potential to generate masses of
renewable energy…
Africa’s solar power potential
Close correlation between energy consumption and economic
development, Africa’s population of more than 1.3 billion people renders Only 48% of the
an immense and mounting need for reliable energy
African population
DRC boasts the largest and most cost-effective hydropower potential on
the continent and could produce up to 100,000MW of power - the entire
has access to
installed capacity of Sub-Saharan Africa is only 37,000MW and the DRC electricity
has the potential to become Africa’s largest power exporter
Africa’s abundant clean energy resources, coupled with new investments
in renewable energy technologies, have spearheaded Africa into a clean
energy revolution - renewable energy is believed to constitute Hydroelectric generation in
Sub-Saharan Africa
approximately 50% of sub-Saharan Africa’s power generation
growth by 2040, consequently accelerating Africa’s novice economies
In terms of generation,
countries such as
Mozambique, Zambia,
Ethiopia, Egypt, the
Democratic Republic of
Congo and Angola
generated more than 9TWh
each in 2019
Source: Africa Energy Indaba, Solutions for Africa
What does Africa need to succeed?...
Natural Resources…
primary driver of economic activity Mining’s contribution to GDP and Exports
Macro-level contributions of mining in low and middle income countries
Metallic mineral, metals & coal
Foreign Direct Investment Production value as % of GDP - 2018
60–90% 100%
Mining FDI often dominates the total flow of FDI into low
of total FDI
Export contribution - 2018
income economies that have limited other attractions for
international capital 90%
Exports 80%
30-40%
Mineral exports can often rise to be a major share of total of total 70%
exports in low income agrarian ecomomies even when starting
from a low base exports
60%
Government Revenue 3-10% 50%
Mineral taxation has become a very significant source of government
of total tax revenues in many low income economies 40%
with limited tax raising capacity revenues
30%
National Income (GDP & GNI)
Modern day mineral processing 3-20% 20%
technology is sophisticated and
highly capital intensive – takes
of total
10%
place outside host country national income
Employment 0%
DRC
Zimbabwe
Nozambique
South Africa
Zambia
Mali
Mauritania
Liberia
Namibia
Morocco
Ghana
Tanzania
Côte d'Ivoire
Gabon
Burkina Faso
Guinea
Botswana
Sudan
Senegal
Sierra Leone
Congo Rep
Malawi
Central African Rep
Mine employment
on its own is 1-2% of total
usually small employment
relative to
national
workforce
Source: ICMM (various years) and OPM (various years) Source: ICMM – Mining Contribution Index 5th EditionRandgold – Barrick merger…
bringing investment back to Africa
Our focus on Tier 1 and strategic assets1 Loulo-Gounkoto (80%)
Loulo-Gounkoto in Mali –
$7.7 billion paid to Jabal Sayid (50%)
now developing third UG mine at Gounkoto State of Mali in the form of
Kibali in DRC – the most automated underground taxes, royalties, salaries
mine in the world and payments to local
suppliers Kibali (45%)
Tongon in Cote d’Ivoire – life of mine extended to
2023 Massawai
North Mara (84%)
Tongon (89.7%)
North Mara and Bulyanhulu in Tanzania – Bulyanhulu (84%)
potential to create another Tier 1 asset as a $1.62 Billion paid by Buzwagi (84%)
combined complex Tongon in Cote d’Ivoire in Lumwana (100%)
Tanzania…Barrick – Acacia buyout – Twiga JV the form of taxes, $250 million
infrastructure, salaries and maiden dividend paid
delivers 16% equity share to state payments to local suppliers in Tanzania
Barrick – Randgold merger supports consolidation
Morila in Mali – sale enabled redeployment of assets Gold production
$3.4 billion paid by
Kibali to DRC in the form
and infrastructure Projects of taxes, permits,
Senegal…Sale of Massawa to Teranga and Copper production infrastructure, salaries
subsequent merger with Endeavour delivers a top 10 and payments to local
producer suppliers
i In Q1 2020, Barrick sold its stake in Massawa to Teranga and retained an 11% equity interest in Teranga. In February 2021, Endeavour Mining and Teranga merged.Our past, present and future is built on
partnerships and responsible mining …
As a modern mining company, Barrick is
committed to being a trusted long-term partner
for our stakeholders in order to be sustainable -
and to be sustainable, we have to be
successful
Environmental
Our employees, communities and host
Governments are key stakeholders
At Barrick, ESG factors are embedded in our
sustainability vision, mission and principles. It
helps us to make better decisions, to help de- Social Governance
risk projects, discover new opportunities and
deliver real value for our business
Africa needs more responsible miners as real
partnersEndnotes…
1. A Tier One Gold Asset is an asset with a reserve potential to deliver a minimum 10-year life, annual production of at least 500,000 ounces of gold and total cash costs per ounce over the mine life that are in
the lower half of the industry cost curve. A Strategic Asset is an asset which in the opinion of Barrick, has the potential to deliver significant unrealized value in the future.You can also read
