Barrick Reports Second Quarter 2014 Results

Barrick Reports Second Quarter 2014 Results  TORONTO, ONTARIO -- (Marketwired) -- 07/30/14 --   Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) (Barrick or the company) today reported a second quarter net loss of $269 million ($0.23 per share). Adjusted net earnings of $159 million ($0.14 per share) include an impairment charge of $514 million related to the Jabal Sayid copper project. Operating cash flow and adjusted operating cash flow was $488 million.         ----------------------------------------------------------------------- ----- OPERATING HIGHLIGHTS AND GUIDANCE                                                                              Second Quarter        Revised       Previous Gold                                      2014  2014 Guidance  2014 Guidance ---------------------------------------------------------------------------- Production (000s of ounces)              1,485                   6,000-6,500 All-in sustaining costs ($ per                                                ounce)                                    865        900-940        920-980 Adjusted operating costs ($ per                                               ounce)                                    594        580-630        590-640   Copper                                                                       ---------------------------------------------------------------------------- Production (millions of pounds)             67                       410-440 C1 cash costs ($ per pound)               2.04                     1.90-2.10   ---------------------------------------------------------------------------- TOTAL CAPITAL EXPENDITURES ($                                                 millions)                                 502    2,200-2,500    2,400-2,700 ----------------------------------------------------------------------------  "Second quarter all-in sustaining costs of $865 per ounce in a lower production quarter clearly demonstrate our ongoing and relentless focus on company-wide cost management," said outgoing President and CEO, Jamie Sokalsky. "The commitment by our mine managers to cost reduction and capital efficiency has allowed us to lower our mid-year operating and capital cost guidance for the second year in a row."  "Going forward, we will build on the momentum we have today," said Co-President Kelvin Dushnisky. "Barrick will continue to focus on maximizing free cash flow and risk-adjusted returns, with a more nimble and entrepreneurial structure focused on developing internal and external partnerships that reflect the original DNA of the company."   "Barrick has some of the best assets in the gold industry and our operations are delivering strong results," added Co-President Jim Gowans. "We still see a lot of opportunities to surface additional value and improve efficiency across our portfolio as we pursue true operational excellence."   Operational Excellence is a Top Priority         --  Reduced 2014 all-in sustaining cost (AISC) guidance to $900-$940 per     ounce(1) and adjusted operating cost guidance to $580-$630 per ounce(1)  --  Reduced 2014 capital expenditure guidance range by $200 million to $2.2-     $2.5 billion from $2.4-$2.7 billion  --  Maintaining 2014 gold production guidance of 6.0-6.5 million ounces  --  Copper guidance unchanged at 410-440 million pounds and C1 cash costs of     $1.90-$2.10 per pound(1)  --  Five cornerstone mines produced 0.896 million ounces of gold at average     AISC of $730 per ounce in the second quarter; these mines are     anticipated to contribute about 60 percent of total production in 2014     at average AISC of $750-$800 per ounce   Progress on Portfolio Optimization         --  Since 2012, reduced the number of mines from 27 to 19 and divested non-     core assets for proceeds in excess of $1.3 billion, the majority of     which has been used to reduce debt  --  Ongoing process to further optimize the portfolio and reduce costs will     focus on the delta between current and optimal performance and determine     the quickest way to close this gap  --  In July 2014, reached an agreement to form a 50/50 joint venture with a     local partner, Saudi Arabian Mining Company (Ma'aden), to operate the     Jabal Sayid copper project and advance production from this first     quartile cost operation   Improving Financial Flexibility        --  Increasing cash flow generation through capital and operating cost     reductions  --  Cash and cash equivalents of $2.5 billion at June 30, 2014  --  Operating cash flow of $488 million in the second quarter of 2014  --  $4.0 billion available under undrawn credit facility  --  $0.3 billion of debt maturing through 2015 and approximately $1 billion     due through 2017   New Executive Management Structure to Accelerate Initiatives and Foster Partnership Culture        --  Unveiled an executive management structure to respond to the distinct     demands and challenges of the mining industry in today's environment  --  Structure places a greater emphasis on operational excellence, and     acceleration of portfolio optimization and cost reduction initiatives,     while fostering a partnership culture  --  Two Co-Presidents appointed to execute on operating plans and strategic     priorities: Kelvin Dushnisky, formerly Senior Executive Vice President     responsible for Corporate and Government Affairs and Chairman of African     Barrick Gold plc, and Jim Gowans, formerly Executive Vice President and     Chief Operating Officer  --  Emphasizes the critical importance of joint responsibility and     accountability for the management of operations and Barrick's key     relationships with host governments and local communities that afford     the company its license to operate; the Co-Presidents are responsible     for the seamless execution of both functions at all times  --  Ammar Al-Joundi, formerly Executive Vice President and Chief Financial     Officer, has been promoted to Senior Executive Vice President and Chief     Financial Officer, and will work with the Chairman on the development     and execution of strategy  --  Darian Rich, formerly Senior Vice President, Human Resources, has been     promoted to Executive Vice President, Talent Management, reflecting the     critical requirement that any company seeking to be the leader in its     field must attract, retain and develop exceptional people  --  Current President and Chief Executive Officer Jamie Sokalsky to step     down effective September 15, 2014   Two New Independent Directors Appointed        --  The Board of Directors has appointed Mr. J. Michael Evans, former Vice     Chairman of Goldman Sachs and Mr. Brian Greenspun, former Chairman and     CEO of Greenspun Media Group and a prominent Nevada business leader, to     serve as independent directors on Barrick's Board. See the Appendix on     page 8 for additional biographical details.   FINANCIAL DISCUSSION  Second quarter 2014 adjusted net earnings were $159 million ($0.14 per share)(2) compared to $663 million ($0.66 per share) in the prior year period. The decrease was primarily due to lower realized gold and copper prices and lower gold and copper sales volumes. The net loss for the second quarter was $269 million ($0.23 per share) compared to a net loss of $8.56 billion ($8.55 per share) in the prior year quarter.   Significant adjusting items for the quarter include:        --  $514 million impairment charge relating to the Jabal Sayid project,     consisting of goodwill and asset impairment charges of $316 million and     $198 million, respectively  --  $34 million in unrealized gains on non-hedge derivative instruments  --  $24 million in gains on sale of assets  --  $31 million in unrealized foreign currency translation losses   Second quarter operating cash flow of $488 million compares to $907 million in the prior year period. The decrease primarily reflects lower gross margin. Adjusted operating cash flow of $488 million(2) compares to $815 million in the prior year period.  GOLDRUSH AND OTHER OPPORTUNITIES IN NEVADA  Barrick continues to focus its exploration and growth efforts on Nevada. It is one of the most stable jurisdictions in the world and the company has a strong track record of proving up reserves in the region. Approximately 50 percent of Barrick's 2014 exploration budget(3) is allocated to Nevada with a large majority to be used to advance Goldrush, the only significant green-field discovery by a major gold producer in the past five years. Beyond Goldrush, Barrick has several other growth opportunities and projects in Nevada near its top tier mines, including Cortez and Goldstrike, with the potential to exceed company risk-adjusted return hurdles.    The Goldrush project is located about six kilometers from the Cortez mine. It is currently 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 underground and open pit mining. Infill drilling is confirming continuity of high grade mineralization and supporting an underground mining scenario. During the second quarter, Barrick submitted a permit application for an exploration decline, which will help to better define the existing resource and allow the company to test for additional mineralization beyond the northern end of the deposit.  At Cortez, drilling in the Lower Zone is in the final stages of a program to upgrade and expand the resources. The Lower Zone is characterized by strong and continuous ore zones. 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 recent drilling results have met or exceeded expectations. Based on these results, the Lower Zone exploration drift will be extended another 500 feet to the south in early 2015 to enable further step-out drilling.  During the second quarter, an Environmental Impact Assessment and Plan of Operations were approved for the 60-percent owned South Arturo project, another near-mine discovery which is located approximately eight kilometers northwest of Goldstrike. South Arturo has 1.7 million ounces(4) in reserves, 2.4 million ounces(4) of measured and indicated resources and 0.4 million ounces(4) of inferred resources (100 percent basis). Barrick plans to start development in late 2015 and mine the high grade, high return portion of the resource (approximately 0.44 million ounces on a 100 percent basis) in 2016 and 2017. The bulk of the ore will be processed through Goldstrike's refractory facilities. Due to its high grade, near surface nature, the project is expected to have lower capital development and operating costs than Goldstrike.   Turquoise Ridge contains over 6.7 million ounces (100 percent basis) in reserves at an average grade of 0.51 ounces per ton, and is the highest reserve grade deposit in the company's operating portfolio. 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.  PASCUA-LAMA RAMP-DOWN COMPLETE  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 process has been completed on schedule and budget and the mine is now on care and maintenance. The company expects to incur costs of approximately $300 million(5) this year, in-line with original guidance, related to the ramp-down, care and maintenance activities and social and environmental obligations.  A decision to restart development will depend on improved economics and reduced uncertainty related to legal and regulatory requirements. To improve execution and cost control, remaining development will take place in distinct stages with specific work programs and budgets. Barrick continues to explore opportunities to improve the project's risk-adjusted returns, including strategic partnerships or royalty and other income streaming agreements.   During the second quarter, Barrick signed a Memorandum of Understanding (MoU) with a group of 15 Diaguita indigenous communities and associations in Chile's Huasco province. The MoU marks a first step in establishing dialogue and working to build trust with members of this important stakeholder group. As part of the MoU, Barrick will make technical and environmental information about the Pascua-Lama project available to the communities and provide financial resources and materials required to support analysis of this information.  OPERATING RESULTS DISCUSSION  Cortez   The Cortez mine produced 0.22 million ounces at AISC of $754 per ounce in the second quarter. Production was impacted by negative grade reconciliations from mining in the GAP area; however, this shortfall is expected to be partially recovered in the second half of the year with a contribution of higher grade ounces from the Cortez Hills open pit. As a result, 2014 production is expected to be at the low end of the guidance range of 0.925-0.975 million ounces and AISC are expected to be at the high end of the range of $750-$780 per ounce.   Goldstrike  Goldstrike produced 0.21 million ounces in the second quarter at AISC of $886 per ounce. Costs benefited from higher than expected production on higher grades and recoveries from the open pit operation, and lower capital stripping related to ongoing optimization of the mine plan. 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 patented 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 for 2014 is expected to be at the high end of the guidance range of 0.865-0.915 million ounces and AISC at the low end of the range of $920-$950 per ounce. In 2015, production is expected to exceed 1.0 million ounces(6) with contributions from the modified autoclaves.  Pueblo Viejo   Barrick's 60 percent share of production from Pueblo Viejo in the second quarter was 0.16 million ounces at AISC of $587 per ounce. The autoclaves have achieved targeted and sustainable run rates but will undergo some planned downtime related to scheduled maintenance in the second half of the year. Production for 2014 is expected to be in the range of 0.600-0.700 million ounces and AISC to be at the high end of the range of $510-$610 per ounce as a result of higher sustaining capital expenditures, primarily due to an increase in capitalized stripping costs.  Lagunas Norte  Lagunas Norte produced 0.12 million ounces at AISC of $593 per ounce in the second quarter. Production was impacted by a construction delay on the new Phase 5 area of the leach pad, which resulted in ore being placed at higher levels of the existing leach pad. Higher grades are anticipated in the second half of the year, as well as faster recoveries from the new leach pad area which is expected to be in operation in the third quarter. Production for 2014 is expected to be at high end of the guidance range of 0.570-0.610 million ounces and AISC at the low end of the range of $640-$680 per ounce.  Veladero  The Veladero mine had a strong quarter, producing 0.19 million ounces at AISC of $740 per ounce. Costs benefited from higher silver credits in the first half of the year. AISC are expected to be higher in the second half of the year primarily due to the timing of sustaining capital expenditures and also from lower silver credits as ore will be sourced mainly from a different pit. Production in 2014 is anticipated to be at the high end of the guidance range of 0.650-0.700 million ounces and AISC at the low end of the range 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 0.21 million ounces in the second quarter at AISC of $973 per ounce and is anticipated to produce 0.795-0.845 million ounces in 2014 at the low end of the AISC guidance range of $1,075-$1,100 per ounce.   Australia Pacific   Australia Pacific produced 0.27 million ounces at AISC of $856 per ounce in the second quarter. The Porgera mine contributed 0.12 million ounces at AISC of $959 per ounce. The KCGM and Cowal operations contributed strong results on higher grades and recoveries, and higher throughput, respectively. Production for Australia Pacific in 2014 is forecast at the high end of the guidance range of 1.000-1.080 million ounces and AISC at the low end of the range of $1,050-$1,100 per ounce.   African Barrick Gold (ABG)   Second quarter attributable production from ABG was 0.11 million ounces at AISC of $1,105 per ounce, demonstrating continued operational improvements. Barrick's share of 2014 production from ABG is anticipated to be above the high end of the guidance range of 0.430-0.460 million ounces and AISC at the low end of the range of $1,100-$1,175 per ounce.  Global Copper   Copper production in the second quarter was 67 million pounds at C1 cash costs of $2.04 per pound. Lumwana contributed 12 million pounds at C1 cash costs of $2.49 per pound, reflecting a partial collapse of the main conveyor in mid-April which suspended processing activities. The conveyor was repaired and normal plant operations resumed in July, ahead of schedule. The Zaldivar mine produced 55 million pounds in the second quarter at C1 cash costs of $1.83 per pound.   Copper guidance for 2014 continues to be expected at 410-440 million pounds and C1 cash costs of $1.90-$2.10 per pound.   In July, Barrick reached an agreement to form a joint venture with Saudi Arabian Mining Company (Ma'aden) to operate the Jabal Sayid copper project. The transaction is expected to close in the fourth quarter of 2014. First production is expected in late 2015 with average annual output of 100-130 million pounds of copper in concentrate at first quartile C1 cash costs during its first full five years of operation.   APPENDIX - Board Appointment Details  Mr. J. Michael Evans, New York, New York  J. Michael Evans served as Vice Chairman of Goldman Sachs from February 2008 until his retirement in December 2013. Mr. Evans was chairman of the firm's Asia operations from 2004 to 2013 and was the global head of Growth Markets from January 2011 to December 2013. He joined Goldman Sachs in 1993 and held various leadership positions within the firm's securities business, including global head of equity capital markets. Mr. Evans is also a nominee to the Board of Directors of Alibaba Group Holding Ltd., the board of which will be established in conjunction with the company's initial public offering. He was born in Toronto, Canada and received a bachelor's degree in politics from Princeton University in 1981. Mr. Evans won a gold medal for Canada at the 1984 summer Olympics in men's eight rowing.  Mr. Brian Greenspun, Las Vegas, Nevada  Brian Greenspun is a prominent Nevada businessman with strong relationships across the state's business and political community. As Chairman and CEO of the Greenspun Media Group from 1989 to 2010, he built a small family newspaper business into a diversified group of companies spanning publishing, cable television, internet and real estate. He is also Publisher and Editor of the Las Vegas Sun and an active supporter of youth programs and public education in Nevada. Mr. Greenspun was appointed by President Bill Clinton to the White House Commission on Small Business in the early 1990s. He was also a member of the Board of Directors of the Tribune Company from 2009 to 2012. Mr. Greenspun holds both a B.A. and a Law degree from Georgetown University.  (1) All-in sustaining costs per ounce, adjusted operating costs per ounce, and C1 cash costs per pound are non-GAAP financial performance measures with no standardized definition under IFRS. See pages 46-51 of Barrick's Second Quarter 2014 Report.  (2) Adjusted net earnings, adjusted net earnings per share and adjusted operating cash flow are non-GAAP financial performance measures with no standardized definition under IFRS. See pages 46-51 of Barrick's Second Quarter 2014 Report.  (3) Barrick's exploration programs are designed and conducted under the supervision of Robert Krcmarov, Senior Vice President, Global Exploration of Barrick.  (4) For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 27-37 of Barrick's 2013 Form 40-F.  (5) About 25 percent is expected to be capitalized. Actual expenditures will be dependent on a number of factors, including environmental and regulatory requirements.  (6) Actual results may vary depending on how the ramp-up of the thiosulfate project progresses.        Key Statistics                                                               Barrick Gold Corporation     Three months ended            Six months ended  (in United States dollars)             June 30,                    June 30,                            --------------------------------------------------                                 2014       2013        2014            2013  ---------------------------------------------------------------------------- Operating Results                                                            Gold production (thousands                                                    of ounces)(1)                 1,485      1,811       3,073           3,608  Gold sold (thousands of                                                       ounces)(1)                    1,516      1,815       3,134           3,562  Per ounce data                                                                Average spot gold price    $  1,288   $  1,415     $ 1,291        $  1,523   Average realized gold                                                         price(2)                     1,289      1,411       1,287           1,518   Adjusted operating                                                            costs(2)                       594        552         588             558   All-in sustaining                                                             costs(2)                       865        910         849             922   All-in costs(2)                 945      1,267         940           1,314   Adjusted operating costs                                                      (on a co-product                                                             basis)(2)                      615        579         610             586   All-in sustaining costs                                                       (on a co-product                                                             basis)(2)                      886        937         871             950   All-in costs (on a co-                                                        product basis)(2)              966      1,294         962           1,342  Copper production                                                             (millions of pounds)             67        134         171             261  Copper sold (millions of                                                      pounds)                          73        135         184             250  Per pound data                                                                Average spot copper price  $   3.08   $   3.24     $  3.14        $   3.42   Average realized copper                                                       price(2)                      3.17       3.28        3.08            3.41   C1 cash costs(2)               2.04       1.75        2.08            2.08   Depreciation(3)                0.37       0.42        0.37            0.38   Other(4)                       0.11       0.10        0.14            0.15   C3 fully allocated                                                            costs(2)                      2.52       2.27        2.59            2.61  ---------------------------------------------------------------------------- Financial Results                                                             (millions)                                                                  Revenues                    $  2,432   $  3,201     $ 5,064        $  6,600  Net loss(5)                     (269)    (8,555)       (181)         (7,708) Adjusted net earnings(2)         159        663         397           1,586  Operating cash flow              488        907       1,073           1,992  Adjusted operating cash                                                       flow(2)                         488        815       1,073           1,974  Per Share Data (dollars)                                                      Net loss (basic)              (0.23)     (8.55)      (0.16)          (7.70)  Adjusted net earnings                                                         (basic)(2)                    0.14       0.66        0.34            1.58   Net loss (diluted)            (0.23)     (8.55)      (0.16)          (7.70) Weighted average basic                                                        common shares (millions)      1,165      1,001       1,165           1,001  Weighted average diluted                                                      common shares                                                                (millions)(6)                 1,165      1,001       1,165           1,001  ----------------------------------------------------------------------------                                                       As at           As at                                                     June 30,    December 31,                                                  ----------------------------                                                        2014            2013  ---------------------------------------------------------------------------- Financial Position                                                            (millions)                                                                  Cash and equivalents                                $ 2,549        $  2,404  Non-cash working capital                              3,492           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, Kanowna up to March 1, 2014 and             Marigold up to April 4, 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 loss represents net loss attributable to the equity holders of the       Company.                                                                 (6) Fully diluted includes dilutive effect of stock options.                   Production and Cost Summary                                                                         Gold Production                                                        (attributable ounces)                                                                      (000's)     All-in sustaining costs(5) ($/oz)              ------------------------- -------------------------------------              Three months   Six months      Three months                                         ended        ended             ended   Six months ended                   June 30,     June 30,          June 30,           June 30,               ------------ ------------ ------------------ ------------------                2014  2013   2014  2013     2014     2013      2014     2013  ------------------------- ------------ ------------------ ------------------ Gold                                                                          Goldstrike     214   187    476   417  $   886  $ 1,226   $   808  $   994   Cortez         217   417    444   760      754      376       706      392   Pueblo Viejo   161   122    320   218      587      635       587      725   Lagunas                                                                       Norte         115   131    249   276      593      663       552      604   Veladero       189   140    347   345      740      768       768      724   North                                                                         America                                                                      Portfolio(1)  205   202    428   405      973    1,258       963    1,253  Australia                                                                     Pacific(2)    268   465    573   912      856    1,016       850    1,046   African                                                                       Barrick                                                                      Gold(3)       114   122    232   230    1,105    1,404     1,118    1,483   Other(4)         2    25      4    45    2,794    1,383     2,266    1,383  ---------------------------------------------------------------------------- Total         1,485 1,811  3,073 3,608  $   865  $   910   $   849  $   922  ----------------------------------------------------------------------------                      Copper Production                                                        (attributable pounds)                                                                   (millions)               C1 Cash Costs(5) ($/lb)              ------------------------- -------------------------------------              Three months   Six months      Three months                                         ended        ended             ended   Six months ended                   June 30,     June 30,          June 30,           June 30,               ------------ ------------ ------------------ ------------------                2014  2013   2014  2013     2014     2013      2014     2013  ---------------------------------------------------------------------------- Total            67   134    171   261  $  2.04  $  1.75   $  2.08  $  2.08  ----------------------------------------------------------------------------                                           Total Gold Production Costs ($/oz)                                        -------------------------------------                                             Three months                                                                        ended   Six months ended                                                  June 30,           June 30,                                         ------------------ ------------------                                            2014     2013      2014     2013  --------------------------------------------------------- ------------------  Direct mining costs before impact of                                          hedges at market foreign exchange                                            rates                                 $   600  $   602   $   595  $   608   Gains realized on currency hedge and                                          commodity hedge/economic hedge                                               contracts                                 (23)     (42)      (21)     (46)  Other(6)                                     -      (14)        -      (14)  By-product credits                         (21)     (27)      (22)     (28)  Royalties                                   38       33        36       38  ---------------------------------------------------------------------------- Adjusted operating costs(5)                 594      552       588      558   Depreciation                               202      210       199      203   Other(6)                                     -       14         -       14  ---------------------------------------------------------------------------- Total production costs                  $   796  $   776   $   787  $   775  ---------------------------------------------------------------------------- Adjusted operating costs(5)             $   594  $   552   $   588  $   558   General & administrative costs              43       35        49       41   Rehabilitation - accretion and                                                amortization (operating sites)             21       19        21       22   Mine on-site exploration and                                                  evaluation costs                            4        9         3        8   Mine development expenditures              117      173       117      164   Sustaining capital expenditures             86      122        71      129  ---------------------------------------------------------------------------- All-in sustaining costs(5)              $   865  $   910   $   849  $   922  ---------------------------------------------------------------------------- All-in costs(5)                         $   945  $ 1,267   $   940  $ 1,314  ----------------------------------------------------------------------------                                         Total Copper Production Costs ($/lb)                                        -------------------------------------                                             Three months                                                                        ended   Six months ended                                                  June 30,           June 30,                                         ------------------ ------------------                                            2014     2013      2014     2013  --------------------------------------------------------- ------------------ C1 cash costs(5)                        $  2.04  $  1.75   $  2.08  $  2.08  Depreciation(7)                            0.37     0.42      0.37     0.38  Other(8)                                   0.11     0.10      0.14     0.15  ---------------------------------------------------------------------------- C3 fully allocated costs(5)             $  2.52  $  2.27   $  2.59  $  2.61  ---------------------------------------------------------------------------- (1) Includes production from Marigold up to April 4, 2014, the effective         date of sale of this asset.                                              (2) 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.                                 (3) 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.                                              (4) Production and all-in sustaining costs include Pierina.                  (5) 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.            (6) Represents the Barrick Energy gross margin divided by equity ounces of       gold sold. Barrick Energy was divested in the third quarter of 2013.     (7) Represents equity depreciation expense divided by equity pounds of           copper sold.                                                             (8) 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             (in millions of United States                                                 dollars, except per share data)   Three months ended      Six months ended   (Unaudited)                                 June 30,              June 30,  ----------------------------------------------------------------------------                                       2014       2013       2014       2013  ----------------------------------------------------------------------------   Revenue (notes 5 and 6)          $   2,432  $   3,201  $   5,064  $   6,600  ---------------------------------------------------------------------------- Costs and expenses (income)                                                  Cost of sales (notes 5 and 7)        1,590      1,832      3,282      3,642  General and administrative                                                    expenses (note 11)                     82         99        185        197  Exploration and evaluation (note                                              8)                                     53         58         85        106  Other expense (income) (note                                                  10A)                                  142        148        342        237  Impairment charges (note 10B)          512      9,327        524      9,332  Gain on non-hedge derivatives                                                 (note 19D)                            (44)       (13)       (65)       (55) ---------------------------------------------------------------------------- Income (loss) before finance                                                  items and income taxes                 97     (8,250)       711     (6,859) Finance items                                                                Finance income                           3          2          6          5  Finance costs (note 12)               (200)      (161)      (401)      (269) ---------------------------------------------------------------------------- (Loss) income from continuing                                                 operations before income taxes       (100)    (8,409)       316     (7,123) Income tax (expense) recovery                                                 (note 13)                            (123)       213       (412)      (220) ---------------------------------------------------------------------------- Loss from continuing operations       (223)    (8,196)       (96)    (7,343) Loss from discontinued                                                        operations                              -       (505)         -       (497) ---------------------------------------------------------------------------- Net loss                         $    (223) $  (8,701) $     (96) $  (7,840) ---------------------------------------------------------------------------- Attributable to:                                                             Equity holders of Barrick Gold                                                Corporation                     $    (269) $  (8,555) $    (181) $  (7,708) Non-controlling interests (note                                               22)                             $      46  $    (146) $      85  $    (132) ----------------------------------------------------------------------------   Earnings per share data attributable to the equity holders of Barrick Gold    Corporation (note 9)                                                        Loss from continuing operations                                               Basic                           $   (0.23) $   (8.04) $   (0.16) $   (7.20)  Diluted                         $   (0.23) $   (8.04) $   (0.16) $   (7.20) ---------------------------------------------------------------------------- Loss from discontinued                                                        operations                                                                   Basic                           $       -  $   (0.51) $       -  $   (0.50)  Diluted                         $       -  $   (0.51) $       -  $   (0.50) ---------------------------------------------------------------------------- Net loss                                                                      Basic                           $   (0.23) $   (8.55) $   (0.16) $   (7.70)  Diluted                         $   (0.23) $   (8.55) $   (0.16) $   (7.70) ----------------------------------------------------------------------------   The notes to these unaudited interim financial statements, which are         contained in the Second Quarter Report 2014 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      Three months ended      Six months ended   dollars) (Unaudited)                        June 30,              June 30,  ----------------------------------------------------------------------------                                       2014       2013       2014       2013  ---------------------------------------------------------------------------- Net loss                         $    (223) $  (8,701) $     (96) $  (7,840) 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, $2, nil and $4                5        (18)        22        (26) Realized (gains) losses and                                                   impairments on AFS financial                                                 securities, net of tax $nil,                                                 ($2), $nil and ($2)                    17         13         23         11  Unrealized gains (losses) on                                                  derivatives designated as cash                                               flow hedges, net of tax ($3),                                                ($12), $1 and ($15)                    13        (85)        28        (55) Realized (gains) losses on                                                    derivatives designated as cash                                               flow hedges, net of tax $1,                                                  $23, $1 and $41                       (31)      (107)       (54)      (182) Currency translation                                                          adjustments, net of tax $nil,                                                $nil, $nil and $nil                     4        (77)         7        (98) ---------------------------------------------------------------------------- Total other comprehensive income                                              (loss)                                  8       (274)        26       (350) ---------------------------------------------------------------------------- Total comprehensive loss         $    (215) $  (8,975) $     (70) $  (8,190) ---------------------------------------------------------------------------- Attributable to:                                                             Equity holders of Barrick Gold                                                Corporation                                                                  Continuing operations           $    (261) $  (8,292) $    (155) $  (7,510)  Discontinued operations         $       -  $    (537) $       -  $    (548) Non-controlling interests        $      46  $    (146) $      85  $    (132) ----------------------------------------------------------------------------   The notes to these unaudited interim financial statements, which are         contained in the Second Quarter Report 2014 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      Three months ended      Six months ended   dollars) (Unaudited)                        June 30,              June 30,  ----------------------------------------------------------------------------                                       2014       2013       2014       2013  ---------------------------------------------------------------------------- OPERATING ACTIVITIES                                                         Net loss from continuing                                                      operations                      $    (223) $  (8,196) $     (96) $  (7,343) Adjusted for the following                                                    items:                                                                       Depreciation                          400        453        802        849   Finance costs                         200        161        401        269   Impairment charges (note 10B)         512      9,327        524      9,332   Income tax expense (recovery)                                                 (note 13)                            123       (213)       412        220   (Increase) decrease in                                                        inventory                            (37)       (69)         5       (233)  Proceeds from settlement of                                                   hedge contracts                        -        219          -        219   Gain on non-hedge derivatives         (44)       (13)       (65)       (55)  Gain on sale of long-lived                                                    assets/investments                   (22)        (1)       (23)        (9)  Other operating activities                                                    (note 14A)                            16       (300)      (225)      (465) ---------------------------------------------------------------------------- Operating cash flows before                                                   interest and income taxes             925      1,368      1,735      2,784  Interest paid                         (276)      (170)      (352)      (217) Income taxes paid                     (161)      (306)      (310)      (626) ---------------------------------------------------------------------------- Net cash provided by operating                                                activities from continuing                                                   operations                            488        892      1,073      1,941  Net cash provided by operating                                                activities from discontinued                                                 operations                              -         15          -         51  ---------------------------------------------------------------------------- Net cash provided by operating                                                activities                            488        907      1,073      1,992  ---------------------------------------------------------------------------- INVESTING ACTIVITIES                                                         Property, plant and equipment                                                 Capital expenditures (note 5)        (616)    (1,552)    (1,232)    (2,931)  Sales proceeds                          2          1         37          3  Divestitures                            86          -        166          -  Investments sales                       27          -         52         18  Other investing activities (note                                              14B)                                  (39)       (46)       (79)      (131) ---------------------------------------------------------------------------- Net cash used in investing                                                    activities from continuing                                                   operations                           (540)    (1,597)    (1,056)    (3,041) Net cash used in investing                                                    activities from discontinued                                                 operations                              -        (12)         -        (57) ---------------------------------------------------------------------------- Net cash used in investing                                                    activities                           (540)    (1,609)    (1,056)    (3,098) ---------------------------------------------------------------------------- FINANCING ACTIVITIES                                                         Proceeds on exercise of stock                                                 options                                 -          -          -          1  Proceeds from divestment of 10%                                               of issued ordinary share                                                     capital of ABG                          -          -        186          -  Debt                                                                          Proceeds                                -      3,060        133      5,110   Repayments                            (18)    (2,066)       (93)    (3,271) Dividends                              (58)      (200)      (116)      (400) Funding from non-controlling                                                  interests                               -         19          2         32  Other financing activities (note                                              14C)                                    -        (14)         -        (22) ---------------------------------------------------------------------------- Net cash (used in) provided by                                                financing activities from                                                    continuing operations                 (76)       799        112      1,450  Net cash used in financing                                                    activities from discontinued                                                 operations                              -          -          -          -  ---------------------------------------------------------------------------- Net cash (used in) provided by                                                financing activities                  (76)       799        112      1,450  ---------------------------------------------------------------------------- Effect of exchange rate changes                                               on cash and equivalents                 1         (9)        (4)       (11) ---------------------------------------------------------------------------- Net (decrease) increase in cash                                               and equivalents                      (127)        88        125        333  Cash and equivalents excluding                                                assets classified as held for                                                sale at the beginning of period     2,672      2,342      2,404      2,097  Add: cash and equivalents of                                                  assets classified as held for                                                sale at the beginning of period         4          -         20          -  ---------------------------------------------------------------------------- Cash and equivalents at the end                                               of period                       $   2,549  $   2,430  $   2,549  $   2,430  ---------------------------------------------------------------------------- Less: cash and equivalents of                                                 assets classified as held for                                                sale at the end of period               -          8          -          8  ---------------------------------------------------------------------------- Cash and equivalents excluding                                                assets classified as held for                                                sale at the end of period       $   2,549  $   2,422  $   2,549  $   2,422  ----------------------------------------------------------------------------   The notes to these unaudited interim financial statements, which are         contained in the Second 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 June         As at   (Unaudited)                                              30,  December 31,  ----------------------------------------------------------------------------                                                          2014          2013  ---------------------------------------------------------------------------- ASSETS                                                                       Current assets                                                                Cash and equivalents (note 19A)                    $   2,549     $   2,404   Accounts receivable                                      377           385   Inventories (note 15)                                  2,644         2,679   Other current assets                                     386           421  ---------------------------------------------------------------------------- Total current assets (excluding assets classified                             as held for sale)                                      5,956         5,889   Assets classified as held for sale                       578           323  ---------------------------------------------------------------------------- Total current assets                                    6,534         6,212    Non-current assets                                                            Equity in investees                                       28            27   Other investments                                        103           120   Property, plant and equipment (note 16)               21,377        21,688   Goodwill (note 17)                                     5,519         5,835   Intangible assets                                        311           320   Deferred income tax assets                               774           501   Non-current portion of inventory (note 15)             1,704         1,679   Other assets                                           1,085         1,066  ---------------------------------------------------------------------------- Total assets                                        $  37,435     $  37,448  ---------------------------------------------------------------------------- LIABILITIES AND EQUITY                                                       Current liabilities                                                           Accounts payable                                   $   1,659     $   2,165   Debt (note 19B)                                          187           179   Current income tax liabilities                           105            75   Other current liabilities                                306           303  ---------------------------------------------------------------------------- Total current liabilities (excluding liabilities                              classified as held for sale)                           2,257         2,722   Liabilities classified as held for sale                   18           162  ---------------------------------------------------------------------------- Total current liabilities                               2,275         2,884    Non-current liabilities                                                       Debt (note 19B)                                       12,973        12,901   Provisions                                             2,594         2,428   Deferred income tax liabilities                        2,546         2,258   Other liabilities                                      1,053           976  ---------------------------------------------------------------------------- Total liabilities                                      21,441        21,447  ---------------------------------------------------------------------------- Equity                                                                        Capital stock (note 21)                               20,862        20,869   Deficit                                               (7,878)       (7,581)  Accumulated other comprehensive loss                     (43)          (69)  Other                                                    321           314  ---------------------------------------------------------------------------- Total equity attributable to Barrick Gold                                     Corporation shareholders                              13,262        13,533   Non-controlling interests (note 22)                    2,732         2,468  ---------------------------------------------------------------------------- Total equity                                           15,994        16,001  ---------------------------------------------------------------------------- Contingencies and commitments (notes 15, 16 and                               23)                                                                         ---------------------------------------------------------------------------- Total liabilities and equity                        $  37,435     $  37,448  ----------------------------------------------------------------------------   The notes to these unaudited interim financial statements, which are         contained in the Second Quarter Report 2014 available on our website are an  integral part of these consolidated financial statements.                      Consolidated Statements of Changes in Equity                                                                      ----------------------------------------- Barrick Gold                         Attributable to equity holders of the    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 (loss) income                -          -        (181)               -   Total other                                                                   comprehensive income            -          -           -               26  ----------------------------------------------------------------------------  Total comprehensive                                                           (loss) income                   -          -        (181)              26  ----------------------------------------------------------------------------  Transactions with                                                             owners                                                                       Dividends                       -          -        (116)               -    Issued on exercise of                                                         stock options                 18          -           -                -    Derecognition of                                                              stock option expense           -         (7)          -                -    Recognized on                                                                 divestment of 10% of                                                         African Barrick Gold           -          -           -                -    Funding from non-                                                             controlling                                                                  interests                      -          -           -                -  ----------------------------------------------------------------------------  Total transactions                                                            with owners                    18         (7)       (116)               -  ---------------------------------------------------------------------------- At June 30, 2014          1,164,670 $   20,862  $   (7,878) $           (43) ----------------------------------------------------------------------------   ---------------------------------------------------------------------------- At January 1, 2013        1,001,108 $   17,926  $    3,269  $           463  ----------------------------------------------------------------------------  Net loss                         -          -      (7,708)               -   Total other                                                                   comprehensive loss              -          -           -             (350) ----------------------------------------------------------------------------  Total comprehensive                                                           loss                            -          -      (7,708)            (350) ----------------------------------------------------------------------------  Transactions with                                                             owners                                                                       Dividends                       -          -        (400)               -    Issued on exercise of                                                         stock options                 44          1           -                -    Recognition of stock                                                          option expense                 -          6           -                -    Funding from non-                                                             controlling                                                                  interests                      -          -           -                -    Other decrease in                                                             non-controlling                                                              interests                      -          -           -                -  ----------------------------------------------------------------------------  Total transactions                                                            with owners                    44          7        (400)               -  ---------------------------------------------------------------------------- At June 30, 2013          1,001,152 $   17,933  $   (4,839) $           113  ----------------------------------------------------------------------------   Consolidated Statements of Changes in Equity                                                          --------------------------                            Barrick Gold             Attributable to equity                               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 (loss) income               -           (181)            85        (96)  Total other                                                                   comprehensive income           -             26              -         26  ----------------------------------------------------------------------------  Total comprehensive                                                           (loss) income                  -           (155)            85        (70) ----------------------------------------------------------------------------  Transactions with                                                             owners                                                                       Dividends                      -           (116)             -       (116)   Issued on exercise of                                                         stock options                 -              -              -          -    Derecognition of                                                              stock option expense          -             (7)             -         (7)   Recognized on                                                                 divestment of 10% of                                                         African Barrick Gold          7              7            177        184    Funding from non-                                                             controlling                                                                  interests                     -              -              2          2  ----------------------------------------------------------------------------  Total transactions                                                            with owners                    7           (116)           179         63  ---------------------------------------------------------------------------- At June 30, 2014        $      321 $       13,262  $       2,732  $  15,994  ----------------------------------------------------------------------------   ---------------------------------------------------------------------------- At January 1, 2013      $      314 $       21,972  $       2,664  $  24,636  ----------------------------------------------------------------------------  Net loss                        -         (7,708)          (132)    (7,840)  Total other                                                                   comprehensive loss             -           (350)             -       (350) ----------------------------------------------------------------------------  Total comprehensive                                                           loss                           -         (8,058)          (132)    (8,190) ----------------------------------------------------------------------------  Transactions with                                                             owners                                                                       Dividends                      -           (400)             -       (400)   Issued on exercise of                                                         stock options                 -              1              -          1    Recognition of stock                                                          option expense                -              6              -          6    Funding from non-                                                             controlling                                                                  interests                     -              -             32         32    Other decrease in                                                             non-controlling                                                              interests                     -              -            (14)       (14) ----------------------------------------------------------------------------  Total transactions                                                            with owners                    -           (393)            18       (375) ---------------------------------------------------------------------------- At June 30, 2013        $      314 $       13,521  $       2,550  $  16,071  ----------------------------------------------------------------------------   (1) Includes cumulative translation losses at June 30, 2014: $73 million         (June 30, 2013: losses of $85 million).                                  (2) Includes additional paid-in capital as at June 30, 2014: $283 million        (December 31, 2013: $276 million; June 30, 2013: $276 million) and           convertible borrowings - equity component as at June 30, 2014: $38           million (December 31, 2013: $38 million; June 30, 2013: $38 million).    The notes to these unaudited interim financial statements, which are          contained in the Second 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                                              CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION  Certain information contained or incorporated by reference in this Second 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 Second 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.  Contacts: INVESTOR CONTACT: Amy Schwalm Vice President, Investor Relations (416) 307-7422 aschwalm@barrick.com  MEDIA CONTACT: Andy Lloyd Vice President, Communications (416) 307-7414 alloyd@barrick.com    
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