www.barrick.com Barrick Gold Corporation Barrick Gold Corporation Barrick Gold Corporation Head Office: Tel: 416 861-9911 Brookfield Place Toll-free throughout North America: TD Canada Trust Tower 1 800 720-7415 Annual Report 2014 161 Bay Street, Suite 3700 Fax: 416 861-2492 P.O. Box 212 Email: [email protected] Toronto, Canada M5J 2S1 barrick.com Annual Report 2014 @barrickgold /barrick.gold.corporation FINANCIAL HIGHLIGHTS (In millions of US dollars, except per share data) 2014 2013 2012 (Based on IFRS) Revenues $ 10,239 $ 12,527 $ 14,394 Net earnings (loss) (2,907) (10,366) (538) Cautionary Statement on Forward-Looking Information per share (2.50) (10.14) (0.54) Adjusted net earnings1 793 2,569 3,954 Certain information contained or incorporated by reference mineral exploration and development; risk of loss due to acts 1 per share 0.68 2.51 3.95 in this Annual Report 2014, including any information as to of war, terrorism, sabotage and civil disturbances; fluctuations Operating cash flow 2,296 4,239 5,983 our strategy, projects, plans or future financial or operating in the currency markets; changes in U.S. dollar interest rates; Cash and equivalents 2,699 2,404 2,097 performance, constitutes “forward-looking statements”. risks arising from holding derivative instruments; litigation; All statements, other than statements of historical fact, are contests over title to properties, particularly title to undeveloped Dividends paid per share 0.20 0.50 0.75 forward-looking statements. The words “believe”, “expect”, properties, or over access to water, power and other required 2 Annualized dividend per share 0.20 0.20 0.80 “anticipate”, “contemplate”, “target”, “plan”, “intend”, infrastructure; business opportunities that may be presented to, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” or pursued by, the Company; our ability to successfully integrate Gold production (000s oz) 6,249 7,166 7,421 and similar expressions identify forward-looking statements. acquisitions or complete divestitures; employee relations; Forward-looking statements are necessarily based upon a availability and increased costs associated with mining inputs 1 Average realized gold price per ounce $ 1,265 $ 1,407 $ 1,669 number of estimates and assumptions that, while considered and labor; and the organization of our previously held African Cash costs per ounce1, 3 $ 598 $ 566 $ 563 reasonable by the Company, are inherently subject to significant gold operations and properties under a separate listed company. All-in sustaining cash costs per ounce1 $ 864 $ 915 $ 1,014 business, economic and competitive uncertainties and In addition, there are risks and hazards associated with the contingencies. Known and unknown factors could cause business of mineral exploration, development and mining, actual results to differ materially from those projected in the including environmental hazards, industrial accidents, unusual Copper production (Mlbs) 436 539 468 forward-looking statements. Such factors include, but are not or unexpected formations, pressures, cave-ins, flooding and Average realized copper price per pound1 $ 3.03 $ 3.39 $ 3.57 limited to: fluctuations in the spot and forward price of gold, gold bullion, copper cathode or gold or copper concentrate 1 copper or certain other commodities (such as silver, diesel losses (and the risk of inadequate insurance, or inability C1 cash costs per pound $ 1.92 $ 1.92 $ 2.05 fuel and electricity); changes in national and local government to obtain insurance, to cover these risks). Many of these 1 C3 fully allocated costs per pound $ 2.43 $ 2.42 $ 2.85 legislation, taxation, controls or regulations and/or changes in uncertainties and contingencies can affect our actual results the administration of laws, policies and practices, expropriation and could cause actual results to differ materially from those 1. Non-GAAP financial measure—see pages 75–84 of the 2014 Financial Report. or nationalization of property and political or economic expressed or implied in any forward-looking statements made 2. Calculation based on annualizing the last dividend paid in the respective year. 3. Unchanged from the measure previously referred to as adjusted operating costs. developments in Canada, the United States, Zambia and other by, or on behalf of, us. Readers are cautioned that forward- jurisdictions in which the Company does or may carry on looking statements are not guarantees of future performance. business in the future; failure to comply with environmental All of the forward-looking statements made in this Annual and health and safety laws and regulations; timing of receipt Report 2014 are qualified by these cautionary statements. of, or failure to comply with, necessary permits and approvals; Specific reference is made to the most recent Form 40-F/Annual diminishing quantities or grades of reserves; increased costs, Information Form on file with the SEC and Canadian provincial delays, suspensions and technical challenges associated with securities regulatory authorities for a discussion of some of Message from the Chairman 2 the construction of capital projects; the impact of global the factors underlying forward-looking statements. Message from the Co-Presidents 4 liquidity and credit availability on the timing of cash flows and Board of Directors 10 the values of assets and liabilities based on projected future The Company disclaims any intention or obligation to update Corporate Governance and Committees cash flows; adverse changes in our credit rating; the impact of or revise any forward-looking statements whether as a result inflation; operating or technical difficulties in connection with of new information, future events or otherwise, except as of the Board 11 mining or development activities; the speculative nature of required by applicable law. Executive Officers and Advisory Boards 12 Management’s Discussion and Analysis 14 Mineral Reserves and Resources 86 Financial Statements 98 Notes to Financial Statements 103 Shareholder Information 171 Ove Brand l Design / Moveable Inc. Merrill Corporation Canada Location Photography Peter Christopher Executive Matthew Plexman, Lorella Zanetti (page 7) Barrick became the world’s leading gold producer through a strong partnership culture, an entrepreneurial spirit, and a conservative financial strategy. We are recovering these principles to deliver the full value of our distinctive profile:a high-quality portfolio, attractive growth prospects, the lowest costs of our peers, and outstanding talent. We are committed to growing free cash flow per share and improving returns—our prime obligations to you—and we are pursuing them with single-minded intensity. From left: James Gowans, Co-President Kelvin Dushnisky, Co-President MESSAGE FROM THE CHAIRMAN Peter Munk grew Barrick from a startup to the world’s largest gold miner in under three decades. He did so by a relentless commitment to certain management and the interests of owners are now basic principles: focus on gold; find the best people one and the same. to run the mines and get out of the way; measure The partnership plan is part of a broader effort success by free cash flow per share; invest that cash to recover Barrick’s distinctive partnership culture. flow with a mixture of boldness and prudence in In Barrick’s early years, Peter led a small group of order to grow the per share value of the Company exceptional people who worked together as a team. and not just its size; keep the balance sheet They knew each other intimately, and they trusted strong; demand excellence and inspire passion at each other completely. They shared responsibility every level. As Peter wrote in his letter to you in and accountability for the Company’s success and 1992, Barrick creates wealth for its shareholders for its setbacks. through its disciplined commitment to simple It was this principle of partnership that motivated business principles: “entrepreneurial management, our decision to have two Co-Presidents. Often in conservative financial strategies, efficient mining the mining industry, the license-to-operate people operations, and a clear focus on profitability.” and the operations team work independently of one These are the principles we have in mind when another. Our new approach gives shared responsibility we say we are taking Barrick “back to the future.” and accountability to the head of operations and the We are recovering what made Barrick so successful, head of corporate affairs, which means they each and we are suiting these principles to contemporary have a stake in the other’s success. The approach is circumstances. working just as planned. We are putting a renewed emphasis on talent. We are bringing the same partnership We elevated our human resources function from approach to our relationships with governments what was essentially a staff support role to a central and communities. Partnership means that we do place on our Executive Team. We also attracted not negotiate solely with our own interests in mind. 12 new leaders who personify the Company’s Rather we make certain that our partners get a original values and bring vital skills and experience good and fair deal, both for the present and the that support our business objectives. long-term future. In the short term, that can result We are returning to the model where our people in the revenue split being slightly less favorable for are owners. We recently extended our partnership us, but in the long term, it means that governments plan to 35 leaders, from mine managers and country will want to work with us, giving us a strong directors to technical experts in the field, and other competitive advantage. senior leaders at our head office. Each year, they Our partnership culture also underpins our return will be graded on their collective performance as to the decentralized model that first made Barrick so measured against a transparent long-term scorecard successful: our executives and our mine managers disclosed to you in advance. A significant portion work closely together but do not interfere with each of their total compensation, if earned, will be long other.