Barrick CEO Addresses Merrill Lynch Conference
11 Setembro 2003 - 2:46PM
UK Regulatory
FOR: BARRICK GOLD CORPORATION
TSX, NYSE, LSE, Swiss, PARIS SYMBOL: ABX
September 11, 2003
Barrick CEO Addresses Merrill Lynch Conference
TORONTO, ONTARIO--
- Affirms Barrick's positive view on gold
- Updates market on key corporate objectives
- Reaffirms outlook for '03 and '04
- Highlights Barrick's valuation relative to peers
Speaking today at a Toronto investment conference, Barrick CEO and President Greg Wilkins told investors "it's a good
time to be in this industry," and provided an update on key corporate objectives and the Company's outlook for 2003 and
2004.
Vision and Strategy
"Gold has been our foundation and remains our focus," Wilkins told the Merrill Lynch Annual Canadian Mining Conference.
"Our goal," Wilkins continued, "is to be the global leader in this industry. To that end, we're going to exploit our
strength of size and scale, as well as our international experience."
Focus on Execution
Underlining the Company's commitment to deliver operationally and achieve continuous improvement, Wilkins told the
gathering: "We're focused on execution - meeting our targets at our operating mines. We've done that for the first two
quarters of 2003, and we're on track to meet our targets in the second half of the year."
Affirming that the Company remains on plan to produce between 5.4 and 5.5 million ounces of gold for 2003 at an average
cost per ounce of $190 to $195(1), Wilkins noted that production will likely be about 10% lower next year with costs
running about 10% higher, as several of the Company's key operations, primarily Pierina and Goldstrike, mine lower
grade material. Looking beyond 2004, Wilkins noted that Barrick should begin to see benefits as the first of the new
mines in its development pipeline come into production in 2005.
Wilkins told the group that amortization for 2003 should run about $530 million for the full year, with estimates for
2004 of about $500 million. Administration costs are projected to be similar in 2004 to 2003, at approximately $75
million.
On the development front, Wilkins noted that "Barrick's Board has just approved our Alto Chicama project in Peru, and
we're also pushing ahead at Veladero." With exploration and development now budgeted at $125 million for 2003, Wilkins
underscored that active exploration programs are underway in all districts in which the Company operates, adding that
"we expect to fund our 2004 exploration and development effort at approximately $100 million."
"I said when I came in as CEO we'd be working to get the right people in the right places to get the job done," said
Wilkins. "With the appointment of Peter Kinver, bringing Barrick his wealth of experience in the industry, we're
strengthening our operations management team, and we'll have our new organizational structure announced by quarter's
end." Wilkins also pledged better communications to the market, and - noting the long lead times in the mining industry
- a focus on the long-term, "growing out of an awareness that the decisions we make today affect production, costs and
earnings three and four years out."
Corporate Governance
On the corporate governance front, Wilkins told the Merrill Lynch audience that earlier this week the Company's Board
of Directors approved Gustavo Cisneros, Chairman and Chief Executive Officer of the Cisneros Group of Companies, as
Barrick's newest board member. Announcing the new appointment, Wilkins praised Cisneros' "unparalleled investment
expertise and business experience in South America, a region of growing importance to Barrick."
Cisneros will be classified as an independent director under NYSE and SEC corporate governance standards. "As we've
indicated earlier, we intend to comply voluntarily with the NYSE and SEC rules on board independence," Wilkins said.
In summary Wilkins conclude: "We will maintain our focus on exploration and operating our mines as efficiently as
possible. At the same time, we will consider any transaction -- including acquisitions, joint ventures, or asset
rationalizations -- which strengthens our company, builds shareholder value for the long-term, and takes advantage of
our world class exploration, infrastructure development and mining expertise."
Noting Barrick's attractive valuation relative to its peers, Wilkins added that "if we execute at our existing
operations, advance our development pipeline and improve our financial performance, we should see the result in
increased shareholder value."
Barrick is a leading international gold producer with the industry's only A-rated balance sheet, a portfolio of
long-life, low-cost operations on four continents and proven and probable reserves of 86.9 million ounces of gold.
Barrick's shares are traded under the ticker symbol ABX on the Toronto, New York, London and Swiss Stock Exchanges and
the Paris Bourse.
(1) For an explanation of non-GAAP performance measures refer to pages 13-14 of Barrick's Second Quarter 2003 Report.
Certain statements included herein, including those regarding production and costs and other statements that express
management's expectations or estimates of our future performance, constitute "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995. The words "believe", "expect",
"anticipate", "contemplate", "target", "plan", "intends", "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 management are inherently subject to
significant business, economic and competitive uncertainties and contingencies. We caution you that such
forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual
financial results, performance or achievements of Barrick to be materially different from our estimated future results,
performance or achievements expressed or implied by those forward-looking statements and our forward-looking statements
are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to:
changes in the worldwide price of gold or certain other commodities (such as silver, copper, diesel fuel and
electricity) and currencies; changes in interest rates or gold lease rates that could impact realized prices under our
forward sales program; legislative, political or economic developments in the jurisdictions in which Barrick carries on
business; operating or technical difficulties in connection with mining or development activities; the speculative
nature of gold exploration and development, including the risks of diminishing quantities or grades of reserves; and
the risks involved in the exploration, development and mining business. These factors are discussed in greater detail
in Barrick's most recent Form 40-F/Annual Information on file with the U.S. Securities and Exchange Commission and
Canadian provincial securities regulatory authorities.
Barrick expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a
result of new information, events or otherwise.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Barrick Gold Corporation
Vincent Borg
Vice President, Corporate Communications
(416) 307-7477
(416) 861-1509 (FAX)
media@barrick.com