Mr. Jamie Sokalsky reports
BARRICK REPORTS FOURTH QUARTER AND FULL YEAR 2013 RESULTS
Barrick Gold Corp. had a fourth-quarter net loss of $2.83-billion ($2.61 per share), including after-tax impairment charges of $2.82-billion. Adjusted net earnings were $410-million (37 cents per share). Operating cash flow was $1.02-billion and adjusted operating cash flow was $1.09-billion.
All figures are in United States dollars except where noted.
For the full year 2013, Barrick reported a net loss of $10.37-billion ($10.14 per share), including after-tax impairment charges of $11.54-billion. Adjusted net earnings were $2.57-billion ($2.51 per share). Operating cash flow of $4.24-billion and adjusted operating cash flow of $4.36-billion reflect the underlying strength of the company's high-quality mining operations.
OPERATING HIGHLIGHTS AND GUIDANCE
2013 actuals
Fourth Full 2014
quarter year guidance
Gold
Production (000 of ounces) 1,713 7,166 6,000-6,500
All-in sustaining costs ($ per ounce) 899 915 920-980
Copper
Production (millions of pounds) 139 539 470-500
C1 cash costs ($ per pound) 1.81 1.92 1.90-2.10
Total capital expenditures ($ millions) 1,294 5,000 2,400-2,700
"The disciplined capital allocation framework that we adopted in mid-2012 has been at the core of every decision we've made in the last year and half and has put us in a much stronger position to deal with the challenging gold price environment our industry is facing today. Under a comprehensive plan to strengthen the company, we have become a leaner, more agile organization, better protected against further downside price risk and well positioned to take advantage of attractive investment opportunities going forward," said Jamie Sokalsky, Barrick's president and chief executive officer. "We have increased our focus on free cash flow and risk-adjusted returns and successfully executed on our key priorities, which include operational excellence, a stronger balance sheet and the ongoing optimization of our asset portfolio. This required decisive action, including the temporary suspension of Pascua-Lama, and an even greater focus on generating higher returns even if that means producing fewer ounces. These were the right decisions for our shareholders and for the company, and we are now seeing the tangible benefits of our efforts."
Operational excellence is a top priority:
- Met improved gold and copper operating guidance for 2013;
- Maintained the lowest all-in sustaining costs (AISC) (1) of the company's peer
group in 2013 and expects to retain this position in 2014;
- Significantly improved Lumwana's performance in 2013 and expect to
reduce costs further in 2014;
- Implemented a flatter, more streamlined organizational model that
supports operational excellence; appointed Jim Gowans as chief operating
officer in December, 2013, an experienced executive who brings four
decades of global mining operations experience to Barrick;
- Reduced 2013 general and administrative costs;
- Targeting $500-million in annual cost savings from the new operating
model, reduced procurement costs and other initiatives;
- Five core mines met expectations in 2013, producing about 4.0 million
ounces or 55 per cent of total production at AISC of $668 per ounce;
these mines are expected to produce about 60 per cent of total production
in 2014 at AISC of $750 per ounce to $800 per ounce.
Strengthened balance sheet and financial flexibility:
- Termed out $3.0-billion in debt in the second quarter of 2013;
- Reduced 2013 capital and operating costs by about $2.0-billion;
- Improved near-term cash flow through temporary suspension of Pascua-Lama;
- Raised $3.0-billion in a bought equity deal in the fourth quarter of
2013 to repay debt, reducing maturities over the next four years to $1.0-billion.
Continued progress on portfolio optimization:
- In the last six months, announced agreements to divest Barrick Energy;
six high-cost, non-core mines; and other assets for a total consideration
of almost $1.0-billion;
- Completed mine plans and reserve estimates using a conservative gold
price assumption of $1,100 per ounce in order to prioritize profitable
production and returns, while retaining the option to access the metal
in the future when prices and returns improve.
"Two thousand thirteen was a tough year for Barrick by any measure, but with a renewed focus on capital discipline and operational excellence across the board, we have reset our focus and revitalized the company's prospects," Mr. Sokalsky said. "We will not veer from this course, which has delivered solid results, reduced costs and improved financial flexibility."
Financial discussion
Fourth quarter 2013 adjusted net earnings were $410-million (37 cents per share) (1) compared with $1.16-billion ($1.16 per share) in the prior-year period. The decrease reflects lower realized gold and copper prices and a decline in gold and copper sales volumes. The net loss for the fourth quarter was $2.83-billion ($2.61 per share) compared with a net loss of $3.01-billion ($3.01 per share) in the prior-year quarter. Significant adjusting items for the quarter include $2.82-billion in impairment charges, primarily related to Pascua-Lama,
Porgera, Veladero and the Australia-Pacific gold segment, and
$176-million in suspension-related costs at Pascua-Lama.
The company recorded an impairment charge for the Pascua-Lama project of $896-million (2) due to the decision to temporarily suspend construction in the fourth quarter. At the Porgera mine, the company recorded an impairment charge of $595-million based on changes to the mine plan to focus primarily on higher-grade underground ore. As a result, Porgera's estimated mine life has decreased from 13 years to nine years. Lower gold price assumptions and the impact of sustained inflationary pressures on operating and capital costs led to a reduction of reserves and life-of-mine production at the Veladero mine in Argentina, resulting in an impairment charge of $300-million. At Jabal Sayid, the annual update to the life-of-mine plan showed a decrease in net present value. In addition, the project's fair value was impacted by a delay in first production. As a result, the company recorded an impairment charge of $303-million. As part of its annual goodwill impairment test, the company recognized a goodwill impairment charge of $551-million for its Australia-Pacific gold segment, primarily related to the lower estimated fair value of Porgera.
Fourth-quarter operating cash flow of $1.02-billion compares with $1.85-billion in the prior-year period. The decline reflects lower realized gold and copper prices and increased income tax payments. Adjusted operating cash flow of $1.09-billion (3) compares with $1.93-billion in the prior-year period and removes the impact of foreign currency and commodity derivative contract settlements.
Reserves and resources
Barrick calculated its reserves for 2013 using a conservative gold price assumption of $1,100 per ounce, compared with $1,500 per ounce in 2012. While this is well below the company's outlook for the gold price and below current spot prices, it reflects Barrick's focus on producing profitable ounces with a solid rate of return and the ability to generate free cash flow. Gold reserves declined to 104.1 million ounces (4) at the end of 2013 from 140.2 million ounces at the end of 2012. Excluding ounces mined and processed in 2013 and divestitures, all of these ounces have transferred to resources, preserving the option to access them in the future at higher gold prices.
The 26-per-cent decline in reserves breaks down as follows (approximations):
Percentage:
-
13 -- conservative gold price assumption of $1,100 per ounce;
-
6 -- ounces mined and processed in 2013;
- 4 -- ounces that are economic at $1,100 per ounce, but do not meet
hurdle rates of return on invested capital;
- 2 -- ounces no longer economic due to increased costs;
- 2 -- divestitures of non-core, high-cost mines as part of the
company's portfolio optimization strategy;
- (1) -- additions.
Measured and indicated gold resources increased to 99.4 million ounces at the end of 2013 from 83.0 million ounces at the end of 2012. Resources were calculated based on a gold price assumption of $1,500 per ounce compared with $1,650 per ounce for 2012. Inferred gold resources decreased to 31.9 million ounces at the end of 2013 from 35.6 million ounces at the end of 2012.
Copper reserves increased slightly to 14.0 billion pounds based on a copper price assumption of $3.00 per pound. Measured and indicated copper resources decreased to 6.9 billion pounds from 10.3 billion pounds at the end of 2012 based on a copper price assumption of $3.50 per pound, primarily as a result of further optimization of the Lumwana mine plan. Inferred copper resources decreased to 0.2 billion pounds from 0.5 billion pounds at the end of 2012.
2014 outlook
Barrick's 2014 gold cost guidance is the lowest among senior producers, with AISC expected to be $920 per ounce to $980 per ounce and adjusted operating costs projected to be $590 per ounce to $640 per ounce.
The company anticipates 2014 gold production of 6.0 million ounces to 6.5 million ounces. Lower production in 2014 reflects the company's strategy to maximize free cash flow and returns over ounces; the divestment of high-cost, short-life mines; lower production from Cortez; and the decision to close Pierina. These declines will be partially offset by an increase in production at Pueblo Viejo.
Detailed 2014 operating guidance, based on the company's new operating model, and capital expenditure guidance is shown in the table.
GOLD PRODUCTION AND COSTS
Production Adj. operating
(millions of AISC costs
ounces) ($ per ounce) ($ per ounce)
Cortez 0.925-0.975 750-780 350-380
Goldstrike 0.865-0.915 920-950 600-640
Pueblo Viejo 0.600-0.700 510-610 385-445
Lagunas Norte 0.570-0.610 640-680 390-430
Veladero 0.650-0.700 940-990 620-670
Subtotal 3.800-4.000 750-800 450-500
North America -- other 0.795-0.845 1,075-1,100 780-805
Australia Pacific 1.000-1.080 1,050-1,100 825-875
African Barrick Gold 0.480-0.510 1,100-1,175 740-790
Total gold 6.000-6.500 (5) 920-980 590-640
COPPER PRODUCTION AND COSTS
Production C3 fully
(millions of C1 cash costs (6) allocated costs (6)
pounds) ($ per pound) ($ per pound)
Total copper 470-500 1.90-2.10 2.50-2.75
CAPITAL EXPENDITURES
($ millions)
Mine site sustaining 2,000-2,200
Mine site expansion 300-375
Projects 100-125
Total 2,400-2,700
Total capital expenditures are expected to decrease by approximately 50 per cent in 2014 to $2.40-billion to $2.70-billion, a reduction of approximately $2.5-billion compared with 2013. The lower expenditures reflect the temporary suspension of construction at Pascua-Lama and lower mine site sustaining and expansion capital requirements. The 2014 exploration budget of $200-million to $240-million (7) remains focused on high-quality, priority projects. About 50 per cent of the budget is allocated to Nevada, the majority of which is targeted for the Goldrush project, where measured and indicated resources increased by 1.6 million ounces to 10.0 million ounces at the end of 2013. Inferred resources at Goldrush were 5.6 million ounces at the end of 2013.
The company anticipates higher finance costs of $800-million to $825-million in 2014 as a result of the decision to temporarily suspend Pascua-Lama, where interest will no longer be capitalized.
Barrick's effective income tax rate in 2014 is expected to be about 50 per cent based on an average gold price of $1,300 per ounce. Please refer to the management discussion and analysis for a full description of factors impacting the company's 2014 income tax rate.
Pascua-Lama update
During the fourth quarter of 2013, Barrick announced the temporary suspension of construction at its Pascua-Lama project, except for those activities required for environmental and regulatory compliance. The ramp-down is on schedule for completion by mid-2014. The company expects to incur costs of about $300-million (8) 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. This approach will facilitate more efficient planning and execution, and improved cost control. In the interim, Barrick will explore opportunities to improve the project's risk-adjusted returns, including strategic partnerships, or royalty and other income-streaming agreements. The company will preserve the option to resume development of this asset, which has a mine life of 25 years.
Corporate governance and executive compensation
In December, 2013, Barrick announced that its founder and chairman, Peter Munk, would retire as chairman and step down from the board of directors at the company's 2014 annual general meeting. John Thornton, currently co-chairman, will become chairman following the 2014 AGM.
In addition, Howard Beck and Brian Mulroney will not stand for re-election as directors at the 2014 AGM. The board has nominated four new independent directors to stand for election at the company's coming AGM: Ned Goodman, Nancy Lockhart, David Naylor and Ernie Thrasher.
Barrick also announced it will implement a new executive compensation plan in 2014 that is fully aligned with the principle of pay for performance and further links compensation with the long-term interests of shareholders. The company has consulted extensively with shareholders in the development of this plan and continues to do so. Details will be announced in the management proxy circular prior to the AGM.
Operating results discussion
Cortez
The Cortez mine produced 240,000 million ounces at AISC of $498 per ounce in the fourth quarter. Even with lower production anticipated in 2014, Cortez remains one of the largest and most attractive gold assets in the world and a cornerstone operation for Barrick. As anticipated in the mine plan, production this year is expected to be 925,000 ounces to 975,000 ounces, primarily due to a decrease in ore grades. AISC is expected to increase to $750 per ounce to $780 per ounce in 2014 as a result of lower production and higher sustaining capital related to waste stripping for the Cortez Hills open pit.
Goldstrike
In the fourth quarter, Goldstrike produced 24,000 ounces at AISC of $770 per ounce. The autoclave facility is undergoing modifications that will enable Goldstrike to bring forward about 4.0 million ounces of production. The total construction cost for this project is $585-million. Expansion capital expenditures related to the project are expected to be $245-million in 2014. First production from the modified autoclaves is anticipated in the fourth quarter of 2014. The modified autoclaves are expected to contribute about 350,000 ounces to 450,000 ounces of annual production in their first full five years of operation. Goldstrike is expected to produce 865,000 ounces to 915,000 ounces in 2014 at AISC of $920 to $950 per ounce. Production is anticipated to increase to above 1.0 million ounces in 2015 with a full year of operations from the modified autoclaves (9).
Pueblo Viejo
Barrick's 60-per-cent share of production from Pueblo Viejo in the fourth quarter was 16,000 ounces at AISC of $720 per ounce. The mine is expected to reach full capacity in the first half of 2014 following completion of modifications to the lime circuit. Barrick's share of production in 2014 is expected to be 600,000 ounces to 700,000 ounces at AISC of $510 to $610 per ounce. The lower anticipated AISC is based on higher production, higher byproduct credits and lower power costs following the commissioning of the 215-megawatt power plant in the third quarter of 2013.
Lagunas Norte
Lagunas Norte produced 20,000 ounces at AISC of $613 per ounce in the fourth quarter. In 2014, the mine is expected to produce 570,000 ounces to 610,000 ounces, processing more ore tons at lower grades compared with 2013. The increase in ore tons is mainly due to higher fleet availability following the transfer of equipment from the Pierina mine. Anticipated AISC of $640 to $680 per ounce in 2014 primarily reflects higher fuel and labour costs related to the increase in tonnage, and an increase in power costs due to a full year of operations at the carbon-in-column plant.
Veladero
Veladero produced 14,000 ounces at AISC of $969 per ounce in the fourth quarter. Veladero is anticipated to produce 650,000 ounces to 700,000 ounces in 2014, reflecting increased recovery of leached ounces and higher grades from the Argenta and Filo Federico pits (10). Higher expected AISC of $940 to $990 per ounce in 2014 is primarily impacted by lower silver byproduct credits, local inflation and the foreign exchange rate of the Argentine peso.
North America -- other
Barrick's other North American mines consist of Bald Mountain, Round Mountain, Turquoise Ridge, Golden Sunlight, Ruby Hill and Hemlo. This segment produced 23,000 ounces in the fourth quarter at AISC of $1,195 per ounce and is anticipated to produce 795,000 ounces to 845,000 ounces in 2014 at AISC of $1,075 to $1,100 per ounce.
Australia Pacific
Australia Pacific produced 36,000 ounces at AISC of $966 per ounce in the fourth quarter. Porgera contributed 13,000 ounces at AISC of $1,350 per ounce. Due to the sale of four mines and the announced divestiture of Kanowna, 2014 production is expected to decline to 1.00 million ounces to 1.08 million ounces in 2014. AISC in 2014 is expected to increase to $1,050 to $1,100 per ounce, primarily due to expensing of waste removal costs at Porgera and higher open pit mining costs at Cowal and Kalgoorlie.
African Barrick Gold
Fourth-quarter attributable production from ABG was 12,000 ounces at AISC of $1,171 per ounce. Full-year attributable production for 2014 is expected to be 480,000 ounces to 510,000 ounces at AISC of $1,100 to $1,175 per ounce. Production in 2014 is anticipated to be higher than 2013 due to higher grades at Bulyanhulu and Buzwagi, as well as the commissioning of the new carbon-in-leach plant at Bulyanhulu, which is scheduled to commence production in May. The improved cost outlook reflects the impact of ABG's operational review, lower sustaining capital costs and reduced corporate overhead costs.
Global copper
Copper production in the fourth quarter was 139 million pounds at C1 cash costs of $1.81 per pound and C3 fully allocated costs of $2.33 per pound. Lumwana contributed 67 million pounds at C1 cash costs of $2.04 per pound. Production at Lumwana in 2014 is expected to be similar to 2013 at slightly lower C1 cash costs. The mine is pursuing a number of initiatives to further improve on cost reductions achieved to date.
The Zaldivar mine produced 72 million pounds in the fourth quarter at C1 cash costs of $1.62 per pound. Production at Zaldivar is anticipated to decrease in 2014 with fewer ore tons mined and processed in line with the mine plan. Production will also be impacted by lower recoveries as the mine processes a higher percentage of secondary sulphide material. C1 cash costs are expected to increase as a result of the impact of lower production on unit costs.
- All-in sustaining costs per ounce, adjusted net earnings and adjusted
net earnings per share are non-GAAP (generally accepted accounting principles) financial performance measures. See
pages 63 to 72 of Barrick's fourth-quarter 2013 report.
- After-tax impairment charges of $5.1-billion for Pascua-Lama were
recorded in the second quarter of 2013, mainly driven by declining
metal prices.
- Adjusted operating cash flow is a non-GAAP financial performance
measure. See pages 63 to 72 of Barrick's fourth-quarter 2013 report.
- Calculated in accordance with National Instrument 43-101 as required by
Canadian securities regulatory authorities. For a breakdown, see pages
155 to 160 of Barrick's fourth-quarter 2013 report.
- Operating unit guidance ranges reflect expectations at each individual
operating unit but do not add up to corporate-wide guidance range
total.
- C1 cash costs per pound and C3 fully allocated costs per pound are non-GAAP financial performance measures. See pages 63 to 72 of Barrick's
fourth-quarter 2013 report.
- Of this, 15 per cent is expected to be capitalized. Barrick's exploration programs are
designed and conducted under the supervision of Robert Krcmarov, senior
vice-president, global exploration, of Barrick.
- About 25 per cent is expected to be capitalized. Actual expenditures will be
dependent on a number of factors, including environmental and
regulatory requirements.
- Actual results will vary depending on how the ramp-up progresses.
- Guidance for Veladero in 2014 assumes the receipt of necessary permit
amendments. See page 26 of the management's discussion and analysis.
KEY STATISTICS
(in United States dollars)
Three months ended 12 months ended
Dec. 31, Dec. 31,
2012 2012
2013 (restated) (6) 2013 (restated) (6)
Operating results
Gold production
(thousands of
ounces) (1) 1,713 2,019 7,166 7,421
Gold sold (thousands
of ounces) (1) 1,829 2,027 7,174 7,292
Per-ounce data
Average spot gold
price $ 1,276 $ 1,722 $ 1,411 $ 1,669
Average realized
gold price (2) 1,272 1,714 1,407 1,669
Adjusted operating
costs (2) 573 547 566 563
All-in sustaining
costs (2) 899 1,048 915 1,014
All-in costs (2) 1,317 1,433 1,282 1,404
Adjusted operating
costs (on a co-
product basis) (2) 592 564 589 580
All-in sustaining
costs (on a co-
product basis) (2) 918 1,065 938 1,031
All-in costs (on a
co-product
basis) (2) 1,336 1,450 1,305 1,421
Copper production
(millions of pounds) 139 130 539 468
Copper sold (millions
of pounds) 134 154 519 472
Per-pound data
Average spot copper
price $ 3.24 $ 3.59 $ 3.32 $ 3.61
Average realized
copper price (2) 3.34 3.54 3.39 3.57
C1 cash costs (2) 1.81 1.93 1.92 2.05
Depreciation (3) 0.37 0.48 0.35 0.54
Other (4) 0.15 0.52 0.15 0.26
C3 fully allocated
costs (2) 2.33 2.93 2.42 2.85
Financial results
(millions)
Revenues $ 2,926 $ 4,149 $ 12,511 $ 14,394
Net (loss) (5) (2,830) (3,013) (10,366) (538)
Adjusted net
earnings (2) 406 1,157 2,569 3,954
Operating cash flow 1,016 1,845 4,239 5,983
Adjusted operating
cash flow (2) 1,085 1,925 4,359 5,700
Per-share data
(dollars)
Net (loss) (basic) (2.61) (3.01) (10.14) (0.54)
Adjusted net
earnings
(basic) (2) 0.37 1.16 2.51 3.95
Net (loss) (diluted) (2.61) (3.01) (10.14) (0.54)
(1) Production includes the company's equity share of gold production at
Highland Gold up to April 26, 2012, the effective date of the company's sale
of Highland Gold. Production also includes African Barrick Gold on a
73.9-per-cent basis and Pueblo Viejo on a 60-per-cent basis, both of which
reflect the company's equity share of production. Also includes production
from Yilgarn South up to Sept. 30, 2013, the effective date of sale of
Yilgarn South assets. Sales include the company's 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 international financial
reporting standards. Refer to the non-GAAP financial performance measures
section of the company's management's discussion and analysis.
(3) Represents equity depreciation expense divided by equity ounces of gold
sold or 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 management's discussion and
analysis.
(5) Net loss represents net loss attributable to the equity holders of the
company.
(6) Balances related to 2012 have been restated to reflect the impact of the
adoption of new accounting pronouncements. See note 2y of the
consolidated financial statements.
PRODUCTION AND COST SUMMARY
Gold production (attributable ounces) (000)
Three months ended 12 months ended
Dec. 31, Dec. 31,
2013 2012 2013 2012
Gold
Goldstrike 242 330 892 1,174
Cortez 244 346 1,337 1,370
Pueblo Viejo (1) 157 65 488 67
Lagunas Norte 195 214 606 754
Veladero 142 222 641 766
North America -- other 231 215 858 883
Australia Pacific (2) 364 470 1,773 1,822
African Barrick
Gold (3) 122 134 474 463
Other (4) 16 23 97 122
Total 1,713 2,019 7,166 7,421
All-in sustaining costs (5) ($/oz)
Three months ended 12 months ended
Dec. 31, Dec. 31,
2013 2012 2013 2012
Gold
Goldstrike $ 770 $ 708 $ 901 $ 802
Cortez 498 649 433 608
Pueblo Viejo (1) 720 - 735 -
Lagunas Norte 613 557 627 565
Veladero 969 811 833 760
North America -- other 1,195 1,273 1,235 1,181
Australia Pacific (2) 966 1,217 994 1,128
African Barrick
Gold (3) 1,171 1,675 1,362 1,585
Other (4) 57 133 65 112
Total 899 1,048 915 1,014
Copper production (attributable pounds)
(millions)
Three months ended 12 months ended
Dec. 31, Dec. 31,
2013 2012 2013 2012
Total 139 130 539 468
C1 cash costs (5) ($/lb)
Three months ended 12 months ended
Dec. 31, Dec. 31,
2012 2012
2013 (restated) (8) 2013 (restated) (8)
Total $ 1.81 $ 1.93 $ 1.92 $ 2.05
Total gold production costs ($/oz)
Three months ended 12 months ended
Dec. 31, Dec. 31,
2012 2012
2013 (restated) (8) 2013 (restated) (8)
Direct mining costs
before impact of
hedges at market
foreign exchange
rates $ 597 $ 586 $ 604 $ 599
Gains realized on
currency hedge and
commodity
hedge/economic
hedge contracts (34) (58) (41) (51)
Other (6) - (12) (8) (12)
Byproduct credits (19) (17) (23) (17)
Royalties 29 48 34 44
Adjusted operating
costs (5) 573 547 566 563
Depreciation 146 207 190 192
Other (6) - 12 8 12
Total production
costs 719 766 764 767
Adjusted operating
costs (5) 573 547 566 563
General and
administrative
costs 34 61 42 60
Rehabilitation --
accretion and
amortization 17 17 19 18
Mine on-site
exploration and
evaluation costs 9 17 8 16
Mine development
expenditures 129 174 154 168
Sustaining capital
expenditures 137 232 126 189
All-in sustaining
costs (5) 899 1,048 915 1,014
All-in costs (5) 1,317 1,433 1,282 1,404
Total copper production costs ($/lb)
Three months ended 12 months ended
Dec. 31, Dec. 31,
2012 2012
2013 (restated) (8) 2013 (restated) (8)
C1 cash costs (5) $ 1.81 $ 1.93 $ 1.92 $ 2.05
Depreciation 0.37 0.48 0.35 0.54
Other (7) 0.15 0.52 0.15 0.26
C3 fully allocated
costs (5) 2.33 2.93 2.42 2.85
(1) All-in sustaining costs for 2012 for Pueblo Viejo are nil as commercial
production was not achieved until January, 2013.
(2) Reflects Yilgarn South up to Sept. 30, 2013, the effective date of
sale of Yilgarn South assets.
(3) Figures relating to African Barrick Gold are presented on a
73.9-per-cent basis, which reflects the company's equity share of
production.
(4) Production figures include Pierina and the company's equity share of
gold production at Highland Gold up to April 26, 2012, the effective date
of the company's sale of Highland Gold. All-in sustaining costs include
Pierina and other general and administrative costs divided by equity
ounces of gold sold.
(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 management's
discussion and analysis.
(6) Represents the Barrick Energy gross margin divided by equity ounces of
gold sold.
(7) 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 management's discussion and
analysis.
(8) Balances related to 2012 have been restated to reflect the impact of the
adoption of new accounting pronouncements. See note 2y of the
consolidated financial statements.
We seek Safe Harbor.
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