Barrick Reports First Quarter 2013 Results
TORONTO, ONTARIO -- (Marketwired) -- 04/24/13 -- Based on IFRS and expressed in US dollars. For a full explanation of results, the Financial Statements and Management Discussion & Analysis, please see the company's website, www.barrick.com.
Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) (Barrick or the "company") today reported strong first quarter 2013 financial and operating results.
-- Net earnings of $847 million ($0.85 per share).
-- Adjusted net earnings of $923 million ($0.92 per share)(1).
-- Operating cash flow of $1.09 billion.
-- Adjusted operating cash flow of $1.16 billion(1).
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FIRST QUARTER 2013 OPERATING HIGHLIGHTS AND FULL YEAR 2013 GUIDANCE
First
Quarter 2013
Gold 2013 Guidance (previous)
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Production (000s of ounces) 1,797 7,000-7,400
All-in sustaining costs ($ per
ounce)(1) 919 950-1,050 (1,000-1,100)
Total cash costs ($ per ounce)(1) 561 610-660
Copper
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Production (millions of pounds) 127 480-540
C1 cash costs ($ per pound)(1) 2.46 2.10-2.30
C3 fully allocated costs ($ per
pound)(1) 3.00 2.60-2.85
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"Our high quality portfolio of mines combined with our sharp focus on cost management has translated into strong quarterly financial and operating results. It is very rewarding to see that our cost reduction efforts have begun to take effect and are reflected in low all-in sustaining costs of $919 per ounce and total cash costs of only $561 per ounce this quarter. We have also further reduced total capex, exploration and all-in sustaining cost guidance for the full year," said Jamie Sokalsky, Barrick's President and CEO. "At Pascua-Lama, we are working to address the environmental and other regulatory requirements on the Chilean side of the project. Concurrently, we are taking a hard look at evaluating all alternatives in light of the uncertainties associated with the suspension of construction in Chile. We are committed to a disciplined approach to capital allocation, based on the principle that returns will drive production, production will not drive returns. While we remain positive on the long-term fundamentals for gold and copper, we don't rely on higher metal prices to be the only driver of shareholder returns."
FINANCIAL RESULTS
Net earnings and adjusted net earnings for the first quarter 2013 of $847 million ($0.85 per share) and $923 million ($0.92 per share), respectively, compared to net earnings and adjusted net earnings of $1.04 billion ($1.04 per share) and $1.10 billion ($1.10 per share), respectively, in the same prior year period. The decrease in net earnings and adjusted net earnings was largely driven by lower realized gold and copper prices, lower gold and copper sales volumes and higher cost of sales applicable to gold and copper, partially offset by lower income tax expense.
Significant adjusting items (net of tax effects) for the quarter include:
-- $63 million in unrealized foreign currency translation losses on working
capital balances;
-- $30 million in other non-recurring expenses; and
-- $17 million in unrealized gains on non-hedge derivative instruments.
First quarter 2013 operating cash flow of $1.09 billion compares to $1.37 billion in the first quarter of 2012. Adjusted operating cash flow of $1.16 billion removes the impact of the Australian dollar hedge settlement and compares to adjusted operating cash flow of $1.48 billion in the same prior year period.
OPERATING RESULTS
First quarter 2013 gold production was 1.80 million ounces at all-in sustaining and total cash costs of $919 per ounce and $561 per ounce, respectively. All-in sustaining and total cash costs benefited from strong performances at Goldstrike, Cortez, and Veladero. The company reaffirms 2013 gold production guidance of 7.0-7.4 million ounces at total cash costs of $610-$660 per ounce. Full year all-in sustaining cost guidance has been reduced to $950-$1,050 per ounce from the previous guidance of $1,000-$1,100 per ounce.
North America Regional Business Unit
North America produced 0.87 million ounces at all-in sustaining and total cash costs of $770 per ounce and $487 per ounce, respectively. Barrick's 60 percent share of production from the new Pueblo Viejo mine was 96,000 ounces at total cash costs of $550 per ounce, after achieving commercial production in January. The mine remains on track to ramp up to full capacity in the second half of this year. Barrick's share of average annual gold production in the first full five years of operation is anticipated to be 0.625-0.675 million ounces at all-in sustaining and total cash costs of $500-$600 per ounce(2) and $300-$350 per ounce(2), respectively.
The government of the Dominican Republic is asking Pueblo Viejo Dominicana Corporation (jointly owned 60 percent by Barrick and 40 percent by Goldcorp) to accelerate and significantly increase its share of the benefits from Pueblo Viejo. The company, while reserving its rights under the Special Lease Agreement (SLA), which cannot be unilaterally altered, continues to engage in dialogue with the government in an effort to achieve a mutually acceptable outcome.
The Cortez mine produced 0.34 million ounces at total cash costs of $177 per ounce, largely reflecting better than anticipated grades. Goldstrike produced 0.23 million ounces at total cash costs of $605 per ounce primarily as a result of higher than expected grades and recoveries.
We continue to expect full year 2013 production for North America to be 3.55-3.70 million ounces at all-in sustaining and total cash costs of $820-$870 per ounce and $495-$545 per ounce, respectively.
South America Regional Business Unit
South America produced 0.37 million ounces at all-in sustaining and total cash costs of $638 per ounce and $405 per ounce, respectively. Higher silver by-product credits at the Veladero mine and delays in sustaining capital spend at Pierina and Veladero positively impacted all-in sustaining costs.
The Veladero mine contributed 0.21 million ounces at total cash costs of $400 per ounce and Lagunas Norte produced 0.15 million ounces at total cash costs of $333 per ounce. We continue to expect South America to produce 1.25-1.35 million ounces in 2013 at all-in sustaining and total cash costs of $875-$925 per ounce and $550-$600 per ounce, respectively.
Australia Pacific Regional Business Unit
Australia Pacific produced 0.45 million ounces at all-in sustaining and total cash costs of $1,096 per ounce and $785 per ounce, respectively. Porgera, the region's largest contributor, produced 0.12 million ounces at total cash costs of $934 per ounce, reflecting the processing of lower cost stockpiles.
We continue to expect full year 2013 production for Australia Pacific to be 1.70-1.85 million ounces at all-in sustaining and total cash costs of $1,200-$1,300 per ounce and $880-$950 per ounce, respectively.
First quarter attributable production from African Barrick Gold was 0.11 million ounces at all-in sustaining and total cash costs of $1,561 per ounce and $931 per ounce. We continue to expect Barrick's share of 2013 production from African Barrick Gold to be 0.40-0.45 million ounces at all-in sustaining and total cash costs of $1,550-$1,600 per ounce and $925-$975 per ounce, respectively.
Global Copper Business Unit
Copper production was 127 million pounds at C1 cash costs of $2.46 per pound and C3 fully allocated costs of $3.00 per pound. Lumwana produced 57 million pounds at C1 cash costs of $3.41 per pound and Zaldivar produced 70 million pounds at C1 cash costs of $1.54 per pound. We continue to expect 2013 copper production to be 480-540 million pounds at C1 cash costs of $2.10-$2.30 per pound and C3 fully allocated costs at $2.60-$2.85 per pound.
Utilizing option collar hedging strategies, the company has protected the downside on approximately half of our remaining 2013 copper production at an average floor price of $3.50 per pound and can participate on the same amount up to an average price of $4.25 per pound(3).
PASCUA-LAMA PROJECT UPDATE
Pascua-Lama is one of the world's largest gold and silver resources with nearly 18 million ounces of proven and probable gold reserves(4), 676 million ounces of silver contained within the gold reserves(4), and an expected mine life of 25 years. It is expected to produce an average of 800,000-850,000 ounces of gold and 35 million ounces of silver in its first full five years of operation at all-in sustaining and total cash costs of $50-$200 per ounce(5) and negative $150 to $0 per ounce, respectively.
During the fourth quarter of 2012, pre-stripping activities in Chile were halted to address increased dust in the open pit area following stronger than normal winds. The project has since strengthened dust mitigation and control measures. Regulatory restrictions have also been placed on the project due to the need to repair and improve certain aspects of the water management system in Chile. Completion of measures to address these aspects is targeted for first quarter 2014.
On April 9, 2013, the Copiapo Court of Appeals in Chile granted a request for a preliminary injunction to suspend construction activities on the Chilean side of the project pending a hearing on a constitutional rights action filed in September of 2012. The action alleges noncompliance with the environmental requirements of the project's Chilean environmental approval. Upon confirming the court order, Barrick took immediate steps to suspend construction activities in Chile, which includes work on the primary crusher and the Chilean side of the tunnel that conveys ore from Chile to Argentina. Activities determined to be necessary for environmental protection are expected to continue, upon appropriate authorization as contemplated by the Court. Construction in Argentina, where the majority of Pascua-Lama's critical infrastructure is located, including the process plant and tailings storage facility, has not been affected. Until we have clarity on the regulatory and legal aspects, we are unable to fully assess the impact on the capital budget, operating costs and schedule of the project. The company is at an early stage of evaluating an alternative development plan that involves accelerating the development of another smaller pit in Argentina in order to provide a source of ore for initial production. This alternative could provide ore for about six months of production during commissioning and ramp up, following which the mine plan would be dependent on a continuous supply of Chilean ore. Therefore, if resumption of construction activities in Chile, including the pre-stripping, is delayed beyond late 2013, or if such development alternative is determined not to be feasible, there could be a significant change to the mine plan and an impact on the capital cost and production schedule of the project. The company will continue to evaluate all alternatives, in light of the uncertainties associated with the legal and regulatory actions, and the current commodity price environment, including the possibility of suspending the project.
As of March 31, 2013, approximately $4.8 billion had been spent. During the quarter, the La Mesa substation in Chile was energized and the southern portion of the 23Kv mine distribution loop completed. As of that date, the tunnel was approximately 80 percent complete. In Argentina, construction of the process plant facility advanced with about 70 percent of structural steel erected; 65 percent of concrete poured; and 55 percent of mass earthworks completed.
DISCIPLINED CAPITAL ALLOCATION
Barrick's strategy prioritizes shareholder value creation by focusing on maximizing risk-adjusted rates of return and free cash flow. The company has taken and will undertake the following steps to re-focus the business and adhere to the principles of its disciplined capital allocation framework based on the principle that returns will drive production, production will not drive returns:
-- The company has reduced its 2013 outlook in a number of key spending
categories, largely driven by its sharp focus on cost control, which is
an integral element of its disciplined approach to capital allocation.
Barrick launched a company-wide overhead review in the first quarter of
2013 and reduced overhead costs by over $100 million for the full year.
We identified approximately $500 million of further reductions to
expenditures and have announced revisions to full year 2013 guidance as
follows:
-- total capex to $5.2-$5.7 billion from previous guidance of $5.7-$6.3
billion;
-- all-in sustaining costs to $950-$1,050 per ounce from previous
guidance of $1,000-$1,100 per ounce; and
-- exploration to $300-$340 million from previous guidance of $400-$440
million.
-- The company is pursuing opportunities to optimize our portfolio,
including the potential sale of Barrick Energy, Kabanga and other non-
core assets.
-- In today's challenging environment, Barrick has no plans to build any
new mines.
-- The company continues to advance our rapidly expanding Goldrush deposit
in Nevada.
-- Barrick recalibrated long-term gold production to a higher quality, more
profitable target of eight million ounces by 2016.
Barrick's vision is to be the world's best gold mining company by operating in a safe, profitable and responsible manner. Barrick's shares are traded on the Toronto and New York stock exchanges.
(1) Adjusted net earnings, adjusted net earnings per share, adjusted operating cash flow, all-in sustaining costs per ounce, total cash costs per ounce, C1 cash costs per pound, and C3 fully allocated costs per pound are non-GAAP financial performance measures with no standardized definition under IFRS. See pages 31-34 of Barrick's First Quarter 2013 Report.
(2) Based on first full five year average and gold and WTI oil price assumptions of $1,700/oz and $90/bbl, respectively. Does not include escalation for future inflation.
(3) The realized price on all 2013 copper production is expected to be reduced by approximately $0.04 per pound as a result of the net premium paid on option hedging strategies. Our remaining copper production is subject to market prices.
(4) For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 25-35 of Barrick's Form 40-F.
(5) Based on gold, silver and WTI oil price assumptions of $1,700/oz, $30/oz, and $90/bbl, respectively and assuming a Chilean Peso to US dollar exchange rate of 475:1. Does not include escalation for future inflation. It is too early to assess the impact of the construction stoppage in Chile and the impact of any alternatives on the project's capital cost estimate and schedule as well as the impact on the average annual gold and silver production, all-in sustaining costs and total cash costs over the first full five years of operation.
Key Statistics
Barrick Gold Corporation Three months ended
(in United States dollars) March 31,
-----------------------------------
2012
(Unaudited) 2013 (restated)(7)
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Operating Results
Gold production (thousands of ounces)(1) 1,797 1,881
Gold sold (thousands of ounces) 1,747 1,783
Per ounce data
Average spot gold price $ 1,632 $ 1,691
Average realized gold price(2) 1,629 1,691
Total cash costs(2) 561 540
All-in sustaining costs(2) 919 909
Copper production (millions of pounds) 127 117
Copper sold (millions of pounds) 115 119
Per pound data
Average spot copper price $ 3.60 $ 3.77
Average realized copper price(2) 3.56 3.78
C1 cash costs(2) 2.46 2.04
Depreciation(3) 0.35 0.44
Other(4) 0.19 0.20
C3 fully allocated costs(2) 3.00 2.68
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Financial Results (millions)
Revenues $ 3,437 $ 3,644
Net earnings(5) 847 1,039
Adjusted net earnings(2) 923 1,096
Operating cash flow 1,085 1,374
Adjusted operating cash flow(2) 1,158 1,476
Per Share Data (dollars)
Net earnings (basic) 0.85 1.04
Adjusted net earnings (basic)(2) 0.92 1.10
Net earnings (diluted) 0.85 1.04
Weighted average basic common shares
(millions) 1,001 1,000
Weighted average diluted common shares
(millions)(6) 1,001 1,002
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As at As at
March 31, December 31,
-----------------------------------
2013 2012 (restated)(7)
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Financial Position (millions)
Cash and equivalents $ 2,342 $ 2,097
Non-cash working capital 3,263 2,884
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(1) Production includes our equity share of gold production at Highland Gold
up to April 26, 2012, the effective date of our sale of Highland Gold.
Production also includes African Barrick Gold on a 73.9% basis, which
reflects our equity share of production.
(2) Realized price, total cash costs, all-in sustaining costs, 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 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 MD&A.
(5) Net earnings represents net income attributable to the equity holders of
the Company.
(6) Fully diluted includes dilutive effect of stock options.
(7) Balances related to 2012 have been restated to reflect the impact of the
adoption of new accounting pronouncements. See note 2B of the interim
consolidated financial statements.
Production and Cost Summary
Gold Production
(attributable ounces) All-in sustaining costs(4)
(000's) ($/oz)
------------------------ -------------------------------
Three months ended Three months ended
March 31, March 31,
------------------------ -------------------------------
(Unaudited) 2013 2012 2013 2012(6)
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Gold
North America 872 888 $ 770 $ 782
South America 370 451 638 615
Australia Pacific 447 426 1,096 1,107
African Barrick
Gold(1) 108 107 1,561 1,438
Other(2) - 9 - -
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Total 1,797 1,881 $ 919 $ 909
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Copper Production
(attributable pounds)
(Millions) C1 Cash Costs ($/lb)
------------------------ -------------------------------
Three months ended Three months ended
March 31, March 31,
------------------------ -------------------------------
(Unaudited) 2013 2012 2013 2012 (Restated)(6)
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Total 127 117 $ 2.46 $ 2.04
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Total Gold Production Costs ($/oz)
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Three months ended
March 31,
--------------------------------------
(Unaudited) 2013 2012 (Restated)(6)
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Direct mining costs at market
foreign exchange rates $ 610 $ 588
Gains realized on currency hedge and
commodity hedge/economic hedge
contracts (50) (57)
Other(3) (14) (14)
By-product credits (29) (17)
Royalties 44 40
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Total cash costs(4) 561 540
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General & administrative costs 44 52
Rehabilitation - accretion and
amortization 26 21
Mine on-site exploration and
evaluation costs 11 12
Mine development expenditures 156 158
Sustaining capital expenditures 121 126
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All-in sustaining costs(4) $ 919 $ 909
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Total Copper Production Costs ($/lb)
--------------------------------------
Three months ended
March 31,
--------------------------------------
(Unaudited) 2013 2012 (Restated)(6)
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C1 cash costs(4) $ 2.46 $ 2.04
Depreciation 0.35 0.44
Other(5) 0.19 0.20
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C3 fully allocated costs(4) $ 3.00 $ 2.68
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(1) Figures relating to African Barrick Gold are presented on a 73.9% basis,
which reflects our equity share of production.
(2) Includes our equity share of gold production at Highland Gold up to
April 26, 2012, the effective date of our sale of Highland Gold.
(3) Represents the Barrick Energy gross margin divided by equity ounces of
gold sold.
(4) Total cash costs, all-in sustaining costs, C1 cash costs and C3 fully
allocated costs are non-gaap financial performance measures with no
standard meaning under IFRS. Refer to the Non-Gaap Financial Performance
Measures section of the Company's MD&A.
(5) 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.
(6) Balances related to 2012 have been restated to reflect the impact of the
adoption of new accounting pronouncements. See note 2B of the interim
consolidated financial statements.
Consolidated Statements of Income
Barrick Gold Corporation
(in millions of United States
dollars, except per share data) Three months ended
(Unaudited) March 31,
----------------------------------------------------------------------------
2013 2012
(restated -
note 2B)
----------------------------------------------------------------------------
Revenue (notes 4 and 5) $ 3,437 $ 3,644
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Costs and expenses (income)
Cost of sales (notes 4 and 6) 1,844 1,753
Corporate administration 45 48
Exploration and evaluation (note 7) 54 73
Other expense (note 9A) 166 117
Impairment charges (note 9B) 5 94
Other income (note 9C) (21) (41)
Loss from equity investees - 4
(Gain) on non-hedge derivatives
(note 16D) (42) (34)
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Income before finance items and
income taxes 1,386 1,630
Finance items
Finance income 3 3
Finance costs (note 10) (108) (48)
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Income before income taxes 1,281 1,585
Income tax expense (note 11) (420) (535)
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Net income $ 861 $ 1,050
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Attributable to:
Equity holders of Barrick Gold
Corporation $ 847 $ 1,039
Non-controlling interests (note 19) $ 14 $ 11
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Earnings per share data attributable
to the equity holders of Barrick
Gold Corporation (note 8)
Net income
Basic $ 0.85 $ 1.04
Diluted $ 0.85 $ 1.04
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The notes to these unaudited interim financial statements, which are
contained in the First Quarter Report 2013 available on our website are an
integral part of these consolidated financial statements.
Consolidated Statements of Comprehensive Income
Barrick Gold Corporation
(in millions of United States dollars) Three months ended
(Unaudited) March 31,
----------------------------------------------------------------------------
2013 2012
(restated -
note 2B)
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Net income $ 861 $ 1,050
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 $2, $nil (8) 2
Realized (gains) losses and impairments
on AFS financial securities, net of tax
$nil, $nil (2) -
Unrealized gains (losses) on derivatives
designated as cash flow hedges, net of
tax $3, $2 30 (15)
Realized (gains) on derivatives
designated as cash flow hedges, net of
tax $18, $29 (75) (80)
Currency translation adjustments, net of
tax $nil, $nil (21) 14
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Total other comprehensive loss (76) (79)
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Total comprehensive income $ 785 $ 971
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Attributable to:
Equity holders of Barrick Gold
Corporation $ 771 $ 960
Non-controlling interests $ 14 $ 11
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The notes to these unaudited interim financial statements, which are
contained in the First Quarter Report 2013 available on our website are an
integral part of these consolidated financial statements.
Consolidated Statements of Cash Flow
Barrick Gold Corporation
(in millions of United States dollars) Three months ended
(Unaudited) March 31,
----------------------------------------------------------------------------
2013 2012 (restated -
note 2B)
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OPERATING ACTIVITIES
Net income $ 861 $ 1,050
Adjusted for the following items:
Depreciation 415 399
Finance costs (excludes accretion) 91 35
Impairment charges (note 9B) 5 94
Income tax expense (note 11) 420 535
Increase in inventory (171) (82)
(Gain) on non-hedge derivatives (42) (34)
(Gain) on sale of long-lived
assets/investments (8) (10)
Other operating activities (note 12A) (119) (231)
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Operating cash flows before interest and
income taxes 1,452 1,756
Interest paid (47) (21)
Income taxes paid (320) (361)
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Net cash provided by operating activities 1,085 1,374
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INVESTING ACTIVITIES
Property, plant and equipment
Capital expenditures (note 4) (1,430) (1,415)
Sales proceeds 2 -
Investments
Sales 18 37
Other investing activities (note 12B) (79) (58)
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Net cash used in investing activities (1,489) (1,436)
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FINANCING ACTIVITIES
Proceeds on exercise of stock options 1 4
Long-term debt
Proceeds 2,050 -
Repayments (1,205) (7)
Dividends (200) (150)
Funding from non-controlling interests 13 140
Other financing activities (note 12C) (8) (14)
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Net cash provided by (used in) financing
activities 651 (27)
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Effect of exchange rate changes on cash
and equivalents (2) 8
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Net increase (decrease) in cash and
equivalents 245 (81)
Cash and equivalents at beginning of
period (note 16A) 2,097 2,749
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Cash and equivalents at end of period
(note 16A) $ 2,342 $ 2,668
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The notes to these unaudited interim financial statements, which are
contained in the First Quarter Report 2013 available on our website are an
integral part of these consolidated financial statements.
Consolidated Balance Sheets
Barrick Gold Corporation
(in millions of United States
dollars) As at As at As at
(Unaudited) March 31, December 31, January 1,
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2012 (restated 2012 (restated
2013 - note 2B) - note 2B)
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ASSETS
Current assets
Cash and equivalents (note
16A) $ 2,342 $ 2,097 $ 2,749
Accounts receivable 380 449 426
Inventories (note 13) 2,809 2,585 2,498
Other current assets 675 626 876
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Total current assets 6,206 5,757 6,549
Non-current assets
Equity in investees 20 20 341
Other investments 50 78 161
Property, plant and equipment
(note 14) 30,172 29,277 29,076
Goodwill (note 15) 8,835 8,837 9,626
Intangible assets 453 453 569
Deferred income tax assets 488 437 409
Non-current portion of
inventory (note 13) 1,584 1,555 1,153
Other assets 1,189 1,064 1,002
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Total assets $ 48,997 $ 47,478 $ 48,886
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LIABILITIES AND EQUITY
Current liabilities
Accounts payable $ 2,202 $ 2,267 $ 2,085
Debt (note 16B) 694 1,848 196
Current income tax
liabilities 37 41 306
Other current liabilities 240 261 326
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Total current liabilities 3,173 4,417 2,913
Non-current liabilities
Debt (note 16B) 14,104 12,095 13,173
Provisions 2,765 2,812 2,326
Deferred income tax
liabilities 2,873 2,668 4,231
Other liabilities 845 850 689
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Total liabilities 23,760 22,842 23,332
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Equity
Capital stock (note 18) 17,929 17,926 17,892
Retained earnings 3,916 3,269 4,562
Accumulated other
comprehensive income 387 463 595
Other 314 314 314
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Total equity attributable to
Barrick Gold Corporation
shareholders 22,546 21,972 23,363
Non-controlling interests
(note 19) 2,691 2,664 2,191
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Total equity 25,237 24,636 25,554
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Contingencies and commitments
(notes 13, 14 and 20)
----------------------------------------------------------------------------
Total liabilities and equity $ 48,997 $ 47,478 $ 48,886
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The notes to these unaudited interim financial statements, which are
contained in the First Quarter Report 2013 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
----------------------------------------------------------------------------
(in millions of Accumulated
United States other
dollars) Common Shares Capital Retained comprehensive
(Unaudited) (in thousands) stock earnings income(1)
----------------------------------------------------------------------------
At January 1, 2013
(restated - note
2B) 1,001,108 $ 17,926 $ 3,269 $ 463
----------------------------------------------------------------------------
Net income - - 847 -
Total other
comprehensive
income (loss) - - - (76)
----------------------------------------------------------------------------
Total
comprehensive
income - - 847 (76)
----------------------------------------------------------------------------
Transactions with
owners
Dividends - - (200) -
Issued on
exercise of
stock options 44 1 - -
Recognition of
stock option
expense - 2 - -
Funding from
non-controlling
interests - - - -
----------------------------------------------------------------------------
Total
transactions
with owners 44 3 (200) -
----------------------------------------------------------------------------
At March 31, 2013 1,001,152 $ 17,929 $ 3,916 $ 387
----------------------------------------------------------------------------
----------------------------------------------------------------------------
At January 1, 2012
(restated - note
2B) 1,000,423 $ 17,892 $ 4,562 $ 595
----------------------------------------------------------------------------
Net income - - 1,039 -
Total other
comprehensive
income - - - (79)
----------------------------------------------------------------------------
Total
comprehensive
income - - 1,039 (79)
----------------------------------------------------------------------------
Transactions with
owners
Dividends - - (150) -
Issued on
exercise of
stock options 124 4 - -
Recognition of
stock option
expense - 3 - -
Funding from
non-controlling
interests - - - -
Other decrease
in non-
controlling
interests - - - -
----------------------------------------------------------------------------
Total
transactions
with owners 124 7 (150) -
----------------------------------------------------------------------------
At March 31, 2012
(restated - note
2B) 1,000,547 $ 17,899 $ 5,451 $ 516
----------------------------------------------------------------------------
----------------------------
Barrick Gold Attributable to equity
Corporation holders of the company
----------------------------------------------
(in millions of Total equity
United States attributable Non-
dollars) to controlling
(Unaudited) Other(2) shareholders interests Total equity
----------------------------------------------------------------------------
At January 1, 2013
(restated - note
2B) $ 314 $ 21,972 $ 2,664 $ 24,636
----------------------------------------------------------------------------
Net income - 847 14 861
Total other
comprehensive
income (loss) - (76) - (76)
----------------------------------------------------------------------------
Total
comprehensive
income - 771 14 785
----------------------------------------------------------------------------
Transactions with
owners
Dividends - (200) - (200)
Issued on
exercise of
stock options - 1 - 1
Recognition of
stock option
expense - 2 - 2
Funding from
non-controlling
interests - - 13 13
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Total
transactions
with owners - (197) 13 (184)
----------------------------------------------------------------------------
At March 31, 2013 $ 314 $ 22,546 $ 2,691 $ 25,237
----------------------------------------------------------------------------
----------------------------------------------------------------------------
At January 1, 2012
(restated - note
2B) $ 314 $ 23,363 $ 2,191 $ 25,554
----------------------------------------------------------------------------
Net income - 1,039 11 1,050
Total other
comprehensive
income - (79) - (79)
----------------------------------------------------------------------------
Total
comprehensive
income - 960 11 971
----------------------------------------------------------------------------
Transactions with
owners
Dividends - (150) - (150)
Issued on
exercise of
stock options - 4 - 4
Recognition of
stock option
expense - 3 - 3
Funding from
non-controlling
interests - - 140 140
Other decrease
in non-
controlling
interests - - (3) (3)
----------------------------------------------------------------------------
Total
transactions
with owners - (143) 137 (6)
----------------------------------------------------------------------------
At March 31, 2012
(restated - note
2B) $ 314 $ 24,180 $ 2,339 $ 26,519
----------------------------------------------------------------------------
(1) Includes cumulative translation losses at March 31, 2013: $8 million
(March 31, 2012: $8 million).
(2) Includes additional paid-in capital as at March 31, 2013: $276 million
(December 31, 2012: $276 million; March 31, 2012: $276 million) and
convertible borrowings - equity component as at March 31, 2013: $38
million (December 31, 2012: $38 million; March 31, 2012: $38 million).
The notes to these unaudited interim financial statements, which are
contained in the First Quarter Report 2013 available on our website are an
integral part of these consolidated financial statements.
CORPORATE OFFICE TRANSFER AGENTS AND REGISTRARS
Barrick Gold Corporation CIBC Mellon Trust Company
Brookfield Place, c/o Canadian Stock
TD Canada Trust Tower Transfer Company Inc.,
Suite 3700 as administrative agent
161 Bay Street, P.O. Box 212 P.O. Box 700, Postal Station B
Toronto, Canada M5J 2S1 Montreal, Quebec, Canada H3B 3K3
Tel: (416) 861-9911 or American Stock Transfer
Fax: (416) 861-0727 & Trust Company, LLC
Toll-free throughout North America: 6201 - 15 Avenue
1-800-720-7415 Brooklyn, NY 11219
Email: investor@barrick.com Tel: 1-800-387-0825
Website: http://www.barrick.com/ Toll-free throughout North America
Fax: (416) 643-5501
SHARES LISTED or 1-888-249-6189
ABX - The New York Stock Exchange Email: inquiries@canstockta.com
The Toronto Stock Exchange Website: http://www.canstockta.com/
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in this First Quarter Report 2013, 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 and copper or certain other commodities (such as silver, diesel fuel and electricity); changes in national and local government legislation, taxation, controls, regulations, 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; 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; fluctuations in the currency markets; operating or technical difficulties in connection with mining or development activities; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits; contests over title to properties, particularly title to undeveloped properties; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; changes in U.S. dollar interest rates; risks arising from holding derivative instruments; litigation; 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 or copper cathode losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this First Quarter Report 2013 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: Greg Panagos
Senior Vice President
Investor Relations and Communications
(416) 309-2943
gpanagos@barrick.com
MEDIA CONTACT: Andy Lloyd
Director, Media Relations
(416) 307-7414
alloyd@barrick.com
