Breaking News

EU Targets Bortnikov, Head of Russian Secret Service, in Draft of Sanctions
Tweet TWEET

Barrick Reports First Quarter 2014 Results

 NEWS RELEASE TRANSMITTED BY Marketwired  FOR: Barrick Gold Corporation  NYSE SYMBOL:  ABX TSX SYMBOL:  ABX  APRIL 30, 2014  Barrick Reports First Quarter 2014 Results  TORONTO, ONTARIO--(Marketwired - April 30, 2014) - Barrick Gold Corporation (NYSE:ABX) (TSX:ABX) (Barrick or the company) today reported first quarter net earnings of $88 million ($0.08 per share). Adjusted net earnings were $238 million ($0.20 per share). Operating cash flow and adjusted operating cash flow was $585 million.  /T/  ---------------------------------------------------------------------------- OPERATING HIGHLIGHTS AND                                                      GUIDANCE                                                                     First Quarter        Revised       Original Gold                                      2014  2014 Guidance  2014 Guidance ---------------------------------------------------------------------------- Production (000s of ounces)              1,588                   6,000-6,500 All-in sustaining costs ($ per                                                ounce)                                    833                       920-980  Copper                                                                       ---------------------------------------------------------------------------- Production (millions of pounds)            104        410-440        470-500 C1 cash costs ($ per pound)               2.11                     1.90-2.10  ---------------------------------------------------------------------------- TOTAL CAPITAL EXPENDITURES                                                    ($ millions)                              509                   2,400-2,700 ----------------------------------------------------------------------------  /T/  "Barrick is a considerably different company today than it was a year ago - leaner, stronger and more financially flexible. Our first quarter all-in sustaining costs of $833 per ounce, $100 per ounce below the prior year quarter, demonstrate that our efforts to reduce costs are delivering tangible results," said Jamie Sokalsky, Barrick's President and CEO. "We continue to focus on assets that can generate the most attractive risk-adjusted returns and free cash flow for Barrick and its shareholders, and we are decisively addressing our under-performing operations. It's clear that Barrick's optimized portfolio continues to deliver solid results, and we are pursuing a number of opportunities in Nevada to unlock further value from our high quality asset base."  /T/  Operational Excellence is a Top Priority                                      --  Maintaining 2014 gold production guidance and all-in sustaining cost  (AISC) guidance, the lowest costs among the senior peer group  --  Five core mines produced 0.94 million ounces of gold at an average AISC  of $672 per ounce. These mines are expected to contribute about 60  percent of total production in 2014 at an average AISC of $750-$800 per  ounce  --  On track to achieve run rate for targeted $500 million in annual savings  by the end of 2014   Further Progress on Portfolio Optimization                                    --  Barrick continues to optimize its portfolio and lower costs. The company  has divested non-core assets for a total consideration of over $1  billion since July 2013, including the sale of the Kanowna and Plutonic  mines in Australia and its 33 percent stake in the Marigold mine in  Nevada in 2014  --  Reduced equity interest in African Barrick Gold (ABG) by 10 percent  during the quarter, capitalizing on the substantial improvement in ABG's  share price in 2014 and creating additional liquidity in ABG  --  Completing advanced scenario plans for a range of metal price  environments, which will allow Barrick to respond and adapt quickly to  changes in market conditions. Options under consideration include  preserving cash, downsizing, closing, expanding or accelerating certain  operations depending on market conditions. This will result in a more  optimized portfolio that maximizes profitability in a lower metal price  environment and better positions the company to capitalize on the  strength of its asset base in the event of a price recovery   Financial Flexibility                                                         --  Cash and cash equivalents of $2.7 billion as at March 31, 2014  --  Operating cash flow of $585 million in the first quarter of 2014  --  $4.0 billion available under undrawn credit facility extended to January  2019  --  $300 million of debt maturing in the next two years, and approximately  $1 billion due in the next four years   /T/  FINANCIAL DISCUSSION  First quarter 2014 adjusted net earnings were $238 million ($0.20 per share)(1) compared to $923 million ($0.92 per share) in the prior year period. The decrease primarily reflects the impact of lower metal prices and lower gold sales volumes. Net earnings for the first quarter were $88 million ($0.08 per share) compared to net earnings of $847 million ($0.85 per share) in the prior year quarter.   Significant adjusting items for the quarter include:  /T/  --  $113 million in unrealized foreign currency translation losses  --  $30 million in demobilization costs related to the ramp-down of Pascua-    Lama  --  $18 million in realized and unrealized gains on non-hedge derivative  instruments   /T/  First quarter operating cash flow of $585 million compares to $1.09 billion in the prior year period. The decrease primarily reflects lower net earnings, partially offset by a decrease in income tax payments. Adjusted operating cash flow of $585 million(1) compares to $1.16 billion in the prior year period.  GOLDRUSH AND OTHER OPPORTUNITIES IN NEVADA  Nevada is a cornerstone of Barrick's success, and a number of growth opportunities are under consideration. The Goldrush project near the Cortez mine is in the pre-feasibility stage and the study remains on schedule for completion in mid-2015. The company is evaluating a number of development options, including underground mining or a combination of both underground and open pit mining. Recent drilling has encountered deep, very high grade mineralization, including an intersection of 103 feet averaging 0.725 ounces per ton, which continues to expand the size and grade potential to the north. Barrick is assessing the feasibility of an exploration decline to better define the existing resource and test for additional mineralization beyond the northern extent of the deposit.   At Cortez Hills, drilling in the Lower Zone is in the final stages of a program to upgrade and expand the resource base. The Lower Zone is characterized by strong and continuous ore zones. Following completion of the scoping study, a pre-feasibility study to evaluate deeper mining below the currently permitted level is expected to be completed by late 2015. Below this level, the Lower Zone is mostly oxide and higher grade than the zones above. Drilling has yet to determine the limits of the Lower Zone and further drilling is planned for the second quarter. Results to date have met or exceeded expectations.   Turquoise Ridge contains over 6.7 million ounces (100 percent basis) in reserves at an average grade of 0.51 ounces per ton, the highest reserve grade deposit in the company's operating portfolio. This exceptional reserve base provides an excellent opportunity to both accelerate and expand production, but the operation is currently restricted by haulage and ventilation constraints. One option being considered is an additional shaft to reduce haulage distances. This could increase production by 75 percent for five to eight years. A pre-feasibility study on this scenario is expected to be completed in late 2014.  The Cortez District continues to yield promising exploration opportunities beyond Goldrush. Barrick has earned a 70 percent interest in the Spring Valley project approximately 60 miles west of Cortez by conducting exploration drilling and scoping activities. The project has advanced to the pre-feasibility stage and could potentially be a new stand-alone gold mine. The company also recently secured the last remaining block of prospective land in the Cortez District. In addition, it has the option to attain a 75 percent interest in the Gold Ridge project, located just north of the Pipeline deposit at Cortez, by completing a scoping study. This is an earlier stage opportunity in a key district which has encouraging geological characteristics.  PASCUA-LAMA RAMP-DOWN ON SCHEDULE  During the fourth quarter of 2013, Barrick announced the temporary suspension of construction at Pascua-Lama, except for activities required for environmental and regulatory compliance. The ramp-down is on schedule for completion by mid-2014 and the majority of demobilization has already occurred. The company expects to incur costs of about $300 million(2) this year for the ramp-down and environmental and social obligations.   A decision to restart development will depend on improved economics and reduced uncertainty related to legal and regulatory requirements. Remaining development will take place in distinct stages with specific work programs and budgets to facilitate more efficient execution and improved cost control. Barrick continues to explore opportunities to improve the project's risk-adjusted returns, including strategic partnerships or royalty and other income streaming agreements.  INDUSTRY-LEADING EXECUTIVE COMPENSATION PLAN IMPLEMENTED FOR 2014  Barrick's new 2014 executive compensation program fundamentally aligns compensation practices with the long-term interests of shareholders based on the principle of pay-for-performance. Under the revised program, participating executives will be assessed on their collective performance, as measured against a transparent scorecard disclosed to shareholders in advance. The company's long-term scorecard will assess participating executives on eight performance measures including return on invested capital, dividends to shareholders, capital project performance and free cash flow. Scores will be published to shareholders at the end of each year, ensuring transparency.   If earned, a majority of compensation awarded will be long-term in nature, and paid out in units that ultimately convert into Barrick common shares. These shares cannot be sold until a participating executive retires or leaves the company. Shares will be purchased on behalf of participating executives on the open market, resulting in no dilution to shareholders. The company has also adopted new minimum share ownership requirements that are among the highest of any Canadian public company and a Clawback Policy for incentive compensation that goes beyond the yet-to-be implemented requirements of the US Dodd-Frank Act.  OPERATING RESULTS DISCUSSION  Cortez  Cortez is one of the lowest cost, long-life gold assets in the world and is located in the stable and prospective jurisdiction of Nevada. The mine produced 0.23 million ounces at AISC of $648 per ounce in the first quarter on lower grades and recoveries. Production in 2014 is forecast at 0.925-0.975 million ounces. AISC are expected to be $750-$780 per ounce, reflecting lower production and higher sustaining capital related to waste stripping for the next phase of the Cortez Hills open pit.   Goldstrike  Goldstrike produced 0.26 million ounces in the first quarter at AISC of $755 per ounce, reflecting higher than anticipated open pit and underground grades. The autoclave facility is undergoing modifications that will enable Goldstrike to accelerate the cash flow from about 4.0 million stockpiled ounces through the addition of a thiosulfate process. The modified autoclaves are forecast to contribute an average of 0.350-0.450 million ounces of annual production at a similar AISC to the overall operation in the first full five years following implementation of this process. First production is on track for the fourth quarter of 2014. Production at Goldstrike in 2014 is anticipated to be 0.865-0.915 million ounces at AISC of $920-$950 per ounce. In 2015, production is expected to exceed 1.0 million ounces(3).  Pueblo Viejo   Barrick's 60 percent share of production from Pueblo Viejo in the first quarter was 0.16 million ounces at AISC of $588 per ounce. The mine is on track to reach full capacity in the first half of 2014 following completion of debottlenecking modifications to the lime circuit. Barrick's share of production in 2014 is anticipated to be 0.600-0.700 million ounces at AISC of $510-$610 per ounce.   Lagunas Norte   Lagunas Norte produced 0.13 million ounces at AISC of $519 per ounce in the first quarter, reflecting lower grades as anticipated in the mine plan. Production for 2014 is forecast at 0.570-0.610 million ounces at AISC of $640-$680 per ounce.  Veladero  Veladero produced 0.16 million ounces in the first quarter. AISC of $811 per ounce benefited from lower costs for fuel and consumables and the devaluation of the Argentine peso. Production in 2014 is anticipated to be 0.650-0.700 million ounces at AISC of $940-$990 per ounce.   North America Portfolio  Barrick's other North American mines consist of Bald Mountain, Round Mountain, Turquoise Ridge, Golden Sunlight, Ruby Hill and Hemlo. This segment produced 0.22 million ounces in the first quarter at AISC of $954 per ounce and is anticipated to produce 0.795-0.845 million ounces in 2014 at AISC of $1,075-$1,100 per ounce.   Australia Pacific   Australia Pacific produced 0.31 million ounces at AISC of $847 per ounce in the first quarter. The Porgera mine contributed 0.11 million ounces at AISC of $955 per ounce. Production for Australia Pacific in 2014 is forecast at 1.000-1.080 million ounces. AISC in 2014 are expected to be $1,050-$1,100 per ounce.   African Barrick Gold (ABG)  First quarter attributable production from ABG was 0.12 million ounces at AISC of $1,131 per ounce. Barrick's share of 2014 production from ABG is now anticipated to be 0.430-0.460 million ounces, reflecting its lower equity interest following the partial divestment in the first quarter. AISC for 2014 continue to be expected at $1,100-$1,175 per ounce.   Global Copper  Copper production in the first quarter was 104 million pounds at C1 cash costs of $2.11 per pound. Lumwana contributed 51 million pounds at C1 cash costs of $2.58 per pound, reflecting the effects of an extended and unusually heavy rainy season. Subsequent to quarter end, a partial collapse of the terminal end of the main conveyor occurred. The company is assessing the cause of the failure, the extent of damage and the time to repair the conveyor in order to resume production. Current estimates are that copper production is likely to resume by the end of the third quarter. In the interim, mining will continue and stockpiled ore will be processed once the plant re-starts. Barrick has comprehensive property and business interruption insurance for Lumwana and believes the incident will not have a material economic impact.   The Zaldivar mine produced 53 million pounds in the first quarter at C1 cash costs of $1.63 per pound. Production is anticipated to be lower in 2014 relative to 2013 on fewer tons mined and processed in line with the mine plan, and due to lower recoveries related to processing a higher percentage of secondary sulfide material. C1 cash costs in 2014 are expected to increase relative to 2013 due to the impact of relatively stable fixed costs spread over lower overall copper production.  Copper production guidance for 2014 has been revised to 410-440 million pounds to reflect the processing disruption at Lumwana. C1 cash cost guidance remains unchanged at $1.90-$2.10 per pound.   (1) Adjusted net earnings and adjusted net earnings per share, adjusted operating cash flow, all-in sustaining costs per ounce, and C1 cash costs per pound are non-GAAP financial performance measures with no standardized definition under IFRS. See pages 36-41 of Barrick's First Quarter 2014 Report.  (2) About 25 percent is expected to be capitalized. Actual expenditures will be dependent on a number of factors, including environmental and regulatory requirements.  (3) Actual results will vary depending on how the ramp-up of the thiosulfate project progresses.  /T/  Key Statistics                                                               Barrick Gold Corporation                                  Three months ended (in United States dollars)                                         March 31,  ----------------------------------  2014                 2013 ---------------------------------------------------------------------------- Operating Results                                                            Gold production (thousands of ounces)(1)          1,588                1,797 Gold sold (thousands of ounces)(1)                1,618                1,747 Per ounce data                                                                Average spot gold price                       $  1,293           $    1,632  Average realized gold price(2)                   1,285                1,629  Adjusted operating costs(2)                        582                  564  All-in sustaining costs(2)                         833                  933  All-in costs(2)                                    933                1,362  Adjusted operating costs (on a co-product                                     basis)(2)                                         605                  593  All-in sustaining costs (on a co-product                                      basis)(2)                                         856                  962  All-in costs (on a co-product basis)(2)            956                1,391 Copper production (millions of pounds)              104                  127 Copper sold (millions of pounds)                    111                  115 Per pound data                                                                Average spot copper price                     $   3.19           $     3.60  Average realized copper price(2)                  3.03                 3.56  C1 cash costs(2)                                  2.11                 2.48  Depreciation(3)                                   0.37                 0.35  Other(4)                                          0.15                 0.04  C3 fully allocated costs(2)                       2.63                 2.87 ---------------------------------------------------------------------------- Financial Results (millions)                                                 Revenues                                       $  2,632           $    3,399 Net income(5)                                        88                  847 Adjusted net earnings(2)                            238                  923 Operating cash flow                                 585                1,085 Adjusted operating cash flow(2)                     585                1,158 Per Share Data (dollars)                                                      Net earnings (basic)                              0.08                 0.85  Adjusted net earnings (basic)(2)                  0.20                 0.92  Net earnings (diluted)                            0.08                 0.85 Weighted average basic common shares                                          (millions)(6)                                    1,165                1,001 Weighted average diluted common shares                                        (millions)(6,7)                                  1,165                1,001 ----------------------------------------------------------------------------  As at                As at  March 31,         December 31,  ----------------------------------  2014                 2013 ---------------------------------------------------------------------------- Financial Position (millions)                                                Cash and equivalents                           $  2,672           $    2,404 Non-cash working capital                          3,313                3,060 ---------------------------------------------------------------------------- (1) Production includes African Barrick Gold ("ABG") on a 73.9% basis until   February 28, 2014 and a 63.9% basis thereafter and Pueblo Viejo on a 60%  basis, both of which reflect our equity share of production. Also         includes production from Yilgarn South up to September 30, 2013,          Plutonic up to January 31, 2014 and Kanowna up to March 1, 2014, the      effective dates of sale of these assets. Sales include our equity share   of gold sales from ABG and Pueblo Viejo.                                 (2) Realized price, adjusted operating costs, all-in sustaining costs, all-   in costs, adjusted operating costs (on a co-product basis), all-in        sustaining costs (on a co-product basis), all-in costs (on a co-product   basis), C1 cash costs, C3 fully allocated costs, adjusted net earnings    and adjusted operating cash flow are non-gaap financial performance       measures with no standard definition under IFRS. Refer to the Non-GAAP    Financial Performance Measures section of the Company's MD&A.            (3) Represents equity depreciation expense divided by equity pounds of        copper sold.                                                             (4) For a breakdown, see reconciliation of cost of sales to C1 cash costs     and C3 fully allocated costs per pound in the Non-GAAP Financial          Performance Measures section of the Company's MD&A.                      (5) Net earnings represents net earnings attributable to the equity holders   of the Company.                                                          (6) Reflects 163.5 million shares issued on November 14, 2013.               (7) Fully diluted includes dilutive effect of stock options.                  Production and Cost Summary                                                   Gold Production                                        (attributable ounces)      All-in sustaining costs(4)     (000's)                       ($/oz)               -------------------------- --------------------------------  Three months ended              Three months ended   March 31,                       March 31,   -------------------------- --------------------------------  2014                2013     2014                   2013  ------------------------------------------- -------------------------------- Gold                                                                          Goldstrike         262                 230  $   755             $      819   Cortez             227                 343      648                    404   Pueblo Viejo       159                  96      588                    860   Lagunas Norte      134                 145      519                    551   Veladero           158                 205      811                    684   North America                                                                 Portfolio         223                 203      954                  1,244   Australia                                                                     Pacific(1)        305                 447      847                  1,076   African Barrick                                                               Gold(2)           118                 108    1,131                  1,577   Other(3)             2                  20    1,792                  1,482  ---------------------------------------------------------------------------- Total             1,588               1,797  $   833             $      933  ----------------------------------------------------------------------------  Copper Production                                       (attributable pounds)                                     (millions)              C1 Cash Costs(4) ($/lb)      -------------------------- --------------------------------  Three months ended              Three months ended   March 31,                       March 31,   -------------------------- --------------------------------  2014                2013     2014                   2013  ---------------------------------------------------------------------------- Total               104                 127  $  2.11             $     2.48  ----------------------------------------------------------------------------  /T/  /T/  Total Gold Production Costs     ($/oz)               --------------------------------  Three months ended   March 31,   --------------------------------  2014                   2013  ----------------------------------------------------------------------------  Direct mining costs before impact of                                          hedges at market foreign exchange rates    $   590             $      613   Gains realized on currency hedge and                                          commodity hedge/economic hedge contracts       (20)                   (50)  Other(5)                                          -                    (14)  By-product credits                              (23)                   (29)  Royalties                                        35                     44  ---------------------------------------------------------------------------- Adjusted operating costs(4)                      582                    564   Depreciation                                    195                    196   Other(5)                                          -                     14  ---------------------------------------------------------------------------- Total production costs                       $   777             $      774  ---------------------------------------------------------------------------- Adjusted operating costs(4)                  $   582             $      564   General & administrative costs                   54                     47   Rehabilitation - accretion and                                                amortization (operating sites)                  21                     24   Mine on-site exploration and evaluation                                       costs                                            1                      5   Mine development expenditures                   117                    156   Sustaining capital expenditures                  58                    137  ---------------------------------------------------------------------------- All-in sustaining costs(4)                   $   833             $      933  ---------------------------------------------------------------------------- All-in costs(4)                              $   933             $    1,362  ----------------------------------------------------------------------------  Total Copper Production Costs    ($/lb)               --------------------------------  Three months ended   March 31,   --------------------------------  2014                   2013  ---------------------------------------------------------------------------- C1 cash costs(4)                             $  2.11             $     2.48  Depreciation                                    0.37                   0.35  Other(6)                                        0.15                   0.04  ---------------------------------------------------------------------------- C3 fully allocated costs(4)                  $  2.63             $     2.87  ---------------------------------------------------------------------------- (1) Reflects production from Yilgarn South up to September 30, 2013,          Plutonic up to January 31, 2014 and Kanowna up to March 1, 2014, the      effective dates of sale of these assets.                                 (2) Figures relating to African Barrick Gold are presented on a 73.9% basis   until February 28, 2014 and a 63.9% basis thereafter, which reflects our  equity share of production.                                              (3) Production and all-in sustaining costs include Pierina.                  (4) Adjusted operating costs, all-in sustaining costs, all-in costs, C1 cash  costs and C3 fully allocated costs are non-GAAP financial performance     measures with no standard meaning under IFRS. Refer to the Non-GAAP       Financial Performance Measures section of the Company's MD&A.            (5) Represents the Barrick Energy gross margin divided by equity ounces of    gold sold. Barrick Energy was divested in the third quarter of 2013.     (6) For a breakdown, see reconciliation of cost of sales to C1 cash costs     and C3 fully allocated costs per pound in the Non-GAAP Financial          Performance Measures section of the Company's MD&A.                       Consolidated Statements of Income                                             Barrick Gold Corporation                                 Three months ended  (in millions of United States dollars, except per                             share data) (Unaudited)                                          March 31,  ----------------------------------------------------------------------------  2014         2013  ----------------------------------------------------------------------------  Revenue (notes 5 and 6)                              $   2,632    $   3,399  ---------------------------------------------------------------------------- Costs and expenses (income)                                                  Cost of sales (notes 5 and 7)                            1,692        1,810  General and administrative expenses (note 11)              103           98  Exploration and evaluation (note 8)                         32           48  Other expense (income) (note 10A)                          200           89  Impairment charges (note 10B)                               12            5  Gain on non-hedge derivatives (note 17D)                   (21)         (42) ---------------------------------------------------------------------------- Income before finance items and income taxes               614        1,391  Finance items                                                                Finance income                                               3            3  Finance costs (note 12)                                   (201)        (108) ---------------------------------------------------------------------------- Income from continuing operations before income                               taxes                                                     416        1,286  Income tax expense (note 13)                              (289)        (433) ---------------------------------------------------------------------------- Income from continuing operations                          127          853  Income from discontinued operations                          -            8  ---------------------------------------------------------------------------- Net income                                           $     127    $     861  ---------------------------------------------------------------------------- Attributable to:                                                             Equity holders of Barrick Gold Corporation           $      88    $     847  Non-controlling interests (note 20)                  $      39    $      14  ----------------------------------------------------------------------------  Earnings per share data attributable to the equity                            holders of Barrick Gold Corporation (note 9)                                Income from continuing operations                                             Basic                                               $    0.08    $    0.84   Diluted                                             $    0.08    $    0.84  ---------------------------------------------------------------------------- Income from discontinued operations                                           Basic                                               $       -    $    0.01   Diluted                                             $       -    $    0.01  ---------------------------------------------------------------------------- Net income                                                                    Basic                                               $    0.08    $    0.85   Diluted                                             $    0.08    $    0.85  ---------------------------------------------------------------------------- The notes to these unaudited interim financial statements, which are         contained in the First Quarter Report 2014 available on our website are an   integral part of these consolidated financial statements.                     Consolidated Statements of Comprehensive Income                               Barrick Gold Corporation                                 Three months ended  (in millions of United States dollars) (Unaudited)                March 31,  ----------------------------------------------------------------------------  2014         2013  ---------------------------------------------------------------------------- Net income                                           $     127    $     861  Other comprehensive income (loss), net of taxes                              Items that may be reclassified subsequently to                                profit or loss:                                                             Unrealized gains (losses) on available-for-sale                               ("AFS") financial securities, net of tax $nil and                            $2                                                         17           (8) Realized (gains) losses and impairments on AFS                                financial securities, net of tax $nil and $nil              6           (2) Unrealized gains (losses) on derivatives                                      designated as cash flow hedges, net of tax $4 and                            $3                                                         17           30  Realized (gains) losses on derivatives designated                             as cash flow hedges, net of tax ($2) and $18              (25)         (75) Currency translation adjustments, net of tax $nil                             and $nil                                                    3          (21) ---------------------------------------------------------------------------- Total other comprehensive income (loss)                     18          (76) ---------------------------------------------------------------------------- Total comprehensive income (loss)                    $     145    $     785  ---------------------------------------------------------------------------- Attributable to:                                                             Equity holders of Barrick Gold Corporation                                    Continuing operations                               $     106    $     782   Discontinued operations                             $       -    $     (11) Non-controlling interests                            $      39    $      14  ---------------------------------------------------------------------------- The notes to these unaudited interim financial statements, which are         contained in the First Quarter Report 2014 available on our website are an   integral part of these consolidated financial statements.                     Consolidated Statements of Cash Flow                                          Barrick Gold Corporation                                 Three months ended  (in millions of United States dollars) (Unaudited)                March 31,  ----------------------------------------------------------------------------  2014         2013  ---------------------------------------------------------------------------- OPERATING ACTIVITIES                                                         Net income from continuing operations                $     127    $     853  Adjusted for the following items:                                             Depreciation                                              402          396   Finance costs                                             201          108   Impairment charges (note 10B)                              12            5   Income tax expense (note 13)                              289          433   (Increase) decrease in inventory                           42         (164)  Gain on non-hedge derivatives                             (21)         (42)  Gain on sale of long-lived assets/investments              (1)          (8)  Other operating activities (note 14A)                    (241)        (165) ---------------------------------------------------------------------------- Operating cash flows before interest and income                               taxes                                                     810        1,416  Interest paid                                              (76)         (47) Income taxes paid                                         (149)        (320) ---------------------------------------------------------------------------- Net cash provided by operating activities from                                continuing operations                                     585        1,049  Net cash provided by operating activities from                                discontinued operations                                     -           36  ---------------------------------------------------------------------------- Net cash provided by operating activities                  585        1,085  ---------------------------------------------------------------------------- INVESTING ACTIVITIES                                                         Property, plant and equipment                                                 Capital expenditures (note 5)                            (616)      (1,379)  Sales proceeds                                             35            2  Divestitures                                                80            -  Investments sales                                           25           18  Other investing activities (note 14B)                      (40)         (85) ---------------------------------------------------------------------------- Net cash used in investing activities from                                    continuing operations                                    (516)      (1,444) Net cash used in investing activities from                                    discontinued operations                                     -          (45) ---------------------------------------------------------------------------- Net cash used in investing activities                     (516)      (1,489) ---------------------------------------------------------------------------- FINANCING ACTIVITIES                                                         Proceeds on exercise of stock options                        -            1  Proceeds from divestment of 10% of issued ordinary                            share capital of ABG                                      186            -  Debt                                                                          Proceeds                                                  133        2,050   Repayments                                                (75)      (1,205) Dividends                                                  (58)        (200) Funding from non-controlling interests                       2           13  Other financing activities (note 14C)                        -           (8) ---------------------------------------------------------------------------- Net cash provided by financing activities from                                continuing operations                                     188          651  Net cash used in financing activities from                                    discontinued operations                                     -            -  ---------------------------------------------------------------------------- Net cash (used in) provided by financing                                      activities                                                188          651  ---------------------------------------------------------------------------- Effect of exchange rate changes on cash and                                   equivalents                                                (5)          (2) ---------------------------------------------------------------------------- Net increase in cash and equivalents                       252          245  Cash and equivalents excluding assets classified                              as held for sale at the beginning of period             2,404        2,097  Add: cash and equivalents of assets classified as                             held for sale at the beginning of period                   20            -  ---------------------------------------------------------------------------- Cash and equivalents at the end of period            $   2,676    $   2,342  ---------------------------------------------------------------------------- Less: cash and equivalents of assets classified as                            held for sale at the end of period                          4            -  ---------------------------------------------------------------------------- Cash and equivalents excluding assets classified                              as held for sale at the end of period               $   2,672    $   2,342  ---------------------------------------------------------------------------- The notes to these unaudited interim financial statements, which are         contained in the First Quarter Report 2014 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)                 As at          As at   (Unaudited)                                       March 31,   December 31,  ----------------------------------------------------------------------------  2014           2013  ---------------------------------------------------------------------------- ASSETS                                                                       Current assets                                                                Cash and equivalents (note 17A)                 $     2,672  $       2,404   Accounts receivable                                     410            385   Inventories (note 15)                                 2,657          2,679   Other current assets                                    424            421  ---------------------------------------------------------------------------- Total current assets (excluding assets                                        classified as held for sale)                          6,163          5,889   Assets classified as held for sale                       87            323  ---------------------------------------------------------------------------- Total current assets                                   6,250          6,212   Non-current assets                                                            Equity in investees                                      28             27   Other investments                                       114            120   Property, plant and equipment (note 16)              21,910         21,688   Goodwill                                              5,835          5,835   Intangible assets                                       312            320   Deferred income tax assets                              627            501   Non-current portion of inventory (note 15)            1,727          1,679   Other assets                                          1,007          1,066  ---------------------------------------------------------------------------- Total assets                                     $    37,810  $      37,448  ---------------------------------------------------------------------------- LIABILITIES AND EQUITY                                                       Current liabilities                                                           Accounts payable                                $     1,871  $       2,165   Debt (note 17B)                                         180            179   Current income tax liabilities                          100             75   Other current liabilities                               322            303  ---------------------------------------------------------------------------- Total current liabilities (excluding liabilities                              classified as held for sale)                          2,473          2,722   Liabilities classified as held for sale                  19            162  ---------------------------------------------------------------------------- Total current liabilities                              2,492          2,884   Non-current liabilities                                                       Debt (note 17B)                                      12,991         12,901   Provisions                                            2,500          2,428   Deferred income tax liabilities                       2,478          2,258   Other liabilities                                     1,073            976  ---------------------------------------------------------------------------- Total liabilities                                     21,534         21,447  ---------------------------------------------------------------------------- Equity                                                                        Capital stock (note 19)                              20,869         20,869   Deficit                                              (7,551)        (7,581)  Accumulated other comprehensive loss                    (51)           (69)  Other                                                   321            314  ---------------------------------------------------------------------------- Total equity attributable to Barrick Gold                                     Corporation shareholders                             13,588         13,533   Non-controlling interests (note 20)                   2,688          2,468  ---------------------------------------------------------------------------- Total equity                                          16,276         16,001  ---------------------------------------------------------------------------- Contingencies and commitments (notes 15, 16 and                               21)                                                                         ---------------------------------------------------------------------------- Total liabilities and equity                     $    37,810  $      37,448  ---------------------------------------------------------------------------- The notes to these unaudited interim financial statements, which are         contained in the First Quarter Report 2014 available on our website are an   integral part of these consolidated financial statements.                     Consolidated Statements of Changes in Equity                                  ----------------------------------------  Attributable to equity holders of the  Barrick Gold Corporation                             company                 ----------------------------------------------------------------------------  Accumulated   other  (in millions of United        Common              Retained    comprehensive   States dollars)          Shares (in    Capital   earnings           income   (Unaudited)              thousands)      stock  (deficit)        (loss)(1)  ---------------------------------------------------------------------------- At January 1, 2014         1,164,652 $   20,869 $   (7,581) $           (69) ----------------------------------------------------------------------------  Net income                        -          -         88                -   Total other                                                                   comprehensive income             -          -          -               18  ----------------------------------------------------------------------------  Total comprehensive                                                           income                           -          -         88               18  ----------------------------------------------------------------------------  Transactions with                                                             owners                                                                       Dividends                        -          -        (58)               -    Issued on exercise of                                                       stock options                  18          -          -                -    Recognized on                                                               divestment of 10% of                                                       African Barrick Gold            -          -          -                -    Funding from non-                                                           controlling interests           -          -          -                -  ----------------------------------------------------------------------------  Total transactions with                                                       owners                          18          -        (58)               -  ---------------------------------------------------------------------------- At March 31, 2014          1,164,670 $   20,869 $   (7,551) $           (51) ----------------------------------------------------------------------------  ---------------------------------------------------------------------------- At January 1, 2013         1,001,108 $   17,926 $    3,269  $           463  ----------------------------------------------------------------------------  Net income                        -          -        847                -   Total other                                                                   comprehensive loss               -          -          -              (76) ----------------------------------------------------------------------------  Total comprehensive                                                           income (loss)                    -          -        847              (76) ----------------------------------------------------------------------------  Transactions with                                                             owners                                                                       Dividends                        -          -       (200)               -    Issued on exercise of                                                       stock options                  44          1          -                -    Recognition of stock                                                        option expense                  -          2          -                -    Funding from non-                                                           controlling interests           -          -          -                -  ----------------------------------------------------------------------------  Total transactions with                                                       owners                          44          3       (200)               -  ---------------------------------------------------------------------------- At March 31, 2013          1,001,152 $   17,929 $    3,916  $           387  ----------------------------------------------------------------------------  Consolidated Statements of Changes in Equity                                  --------------------------                            Attributable to equity                             Barrick Gold Corporation  holders of the company                             --------------------------------------------------                            Total equity                           (in millions of United                attributable           Non-             States dollars)                                to    controlling     Total   (Unaudited)               Other(2)   shareholders      interests    equity  ---------------------------------------------------------------------------- At January 1, 2014       $      314 $       13,533  $       2,468 $  16,001  ----------------------------------------------------------------------------  Net income                       -             88             39       127   Total other                                                                   comprehensive income            -             18              -        18  ----------------------------------------------------------------------------  Total comprehensive                                                           income                          -            106             39       145  ----------------------------------------------------------------------------  Transactions with                                                             owners                                                                       Dividends                       -            (58)             -       (58)   Issued on exercise of                                                       stock options                  -              -              -         -    Recognized on                                                               divestment of 10% of                                                       African Barrick Gold           7              7            179       186    Funding from non-                                                           controlling interests          -              -              2         2  ----------------------------------------------------------------------------  Total transactions with                                                       owners                          7            (51)           181       130  ---------------------------------------------------------------------------- At March 31, 2014        $      321 $       13,588  $       2,688 $  16,276  ----------------------------------------------------------------------------  ---------------------------------------------------------------------------- At January 1, 2013       $      314 $       21,972  $       2,664 $  24,636  ----------------------------------------------------------------------------  Net income                       -            847             14       861   Total other                                                                   comprehensive loss              -            (76)             -       (76) ----------------------------------------------------------------------------  Total comprehensive                                                           income (loss)                   -            771             14       785  ----------------------------------------------------------------------------  Transactions with                                                             owners                                                                       Dividends                       -           (200)             -      (200)   Issued on exercise of                                                       stock options                  -              1              -         1    Recognition of stock                                                        option expense                 -              2              -         2    Funding from non-                                                           controlling interests          -              -             13        13  ----------------------------------------------------------------------------  Total transactions with                                                       owners                          -           (197)            13      (184) ---------------------------------------------------------------------------- At March 31, 2013        $      314 $       22,546  $       2,691 $  25,237  ---------------------------------------------------------------------------- (1) Includes cumulative translation losses at March 31, 2014: $79 million     (March 31, 2013: losses of $8 million).                                  (2) Includes additional paid-in capital as at March 31, 2014: $283 million    (December 31, 2013: $276 million; March 31, 2013: $276 million) and       convertible borrowings - equity component as at March 31, 2014: $38       million (December 31, 2013: $38 million; March 31, 2013: $38 million).   The notes to these unaudited interim financial statements, which are          contained in the First Quarter Report 2014 available on our website are an   integral part of these consolidated financial statements.                    CORPORATE OFFICE                         TRANSFER AGENTS AND REGISTRARS      Barrick Gold Corporation                 CST Trust Company                   Brookfield Place, TD Canada Trust Tower  P.O. Box 700, Postal Station B      Suite 3700                               Montreal, Quebec, Canada H3B 3K3    161 Bay Street, P.O. Box 212             or                                  Toronto, Canada M5J 2S1                  American Stock Transfer & Trust      Company, LLC                        Tel: (416) 861-9911 Fax: (416) 861-0727  6201 - 15 Avenue                    Toll-free throughout North America: 1-   Brooklyn, NY 11219                   800-720-7415                                                                Email: investor@barrick.com              Tel: 1-800-387-0825                 Website: www.barrick.com                 Toll-free throughout North America   Fax: 1-888-249-6189                 SHARES LISTED                            Email: inquiries@canstockta.com     ABX - The New York Stock Exchange        Website: www.canstockta.com          The Toronto Stock Exchange                                              /T/  CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION  Certain information contained or incorporated by reference in this First Quarter Report 2014, 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", "intend", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the company, 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. 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 and electricity); 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; 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; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; 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 rating; the impact of inflation; operating or technical difficulties in connection with mining or development activities; the speculative nature of mineral exploration and development; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; fluctuations in the currency markets; changes in U.S. dollar interest rates; risks arising from holding derivative instruments; 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; employee relations; 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 First Quarter Report 2014 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 discussion of some of the factors underlying forward-looking statements.  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.  -30- FOR FURTHER INFORMATION PLEASE CONTACT:  INVESTOR CONTACT: Amy Schwalm Vice President, Investor Relations (416) 307-7422 aschwalm@barrick.com or MEDIA CONTACT: Andy Lloyd Vice President, Communications (416) 307-7414 alloyd@barrick.com  INDUSTRY:  Manufacturing and Production - Mining and Metals  SUBJECT:  ERN