BA RRICK GOLD CORPORATION 2003 Annual Report What we said. What we did. What’s next. A Progress Report You can contact us toll-free within Canada and the United States: 800-720-7415 email us at: [email protected] BARRICK GOLD visit our investor relations website: www.barrick.com 2003 Annual Report TT36264-Barrick36264-Barrick AARR Cvr.inddCvr.indd 1 33/10/04/10/04 112:08:222:08:22 PPMM BARRICK AT A GLANCE Barrick Gold Corporation is among the world’s largest gold producers in terms of market capitalization, production and reserves. Barrick operates a low-cost portfolio of 12 mines and four major development projects on four continents. Combined with the industry’s only A-rated balance sheet and an aggressive exploration program, these assets position Barrick to prosper in the years ahead. In 2003 Barrick produced 5.51 million ounces of gold at an average total cash cost of $189 per ounce1 – the lowest cash cost among senior gold producers. The Company’s development plan is expected to add four major new mines – Veladero, Alto Chicama, Cowal, and Pascua-Lama – between 2005 and 2008. Together, these mines are projected to produce approximately 2 million- plus ounces of gold annually. Their average cost will be well below our current cash cost over Moveable Inc. Printing: Bowne of Canada, Ltd. their fi rst decade of operation, augmenting the quality and profi tability of Barrick’s existing production portfolio. Barrick’s shares trade under the ticker symbol ABX on the Toronto, New York, London and Swiss stock exchanges, as well as the Paris Bourse. 1. See page 58 for a discussion of non-GAAP measures. Global Diversifi cation Forward-Looking Statements Certain statements included herein, including those regarding production and costs and other statements North America 28% 60% North America that express management’s expectations or estimates of our future performance, constitute “forward- 44% South America 20% South America looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 13% Australia 1995. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, 15% Australia “continue”, “budget”, “estimate”, “may”, “will”, “schedule”, and similar expressions identify forward- 7% East Africa 13% East Africa 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. In particular, our Management’s Discussion and Analysis includes many such forward-looking statements and we caution you that such fi g. 1 2003 Reserves fi g. 2 2004E Production forward-looking statements involve known and unknown risks, uncertainties and other factors that may Barrick’s diversified portfolio provides a truly cause the actual financial results, performance or achievements of Barrick to be materially different from global presence on four continents. 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, Contents 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 and electricity) and currencies; legislative, political or Financial Highlights pg. 1 Management’s Discussion and Analysis pg. 21 economic developments in the jurisdictions in which Barrick carries on business; operating or technical Letter to Shareholders pg. 2 Financial Statements pg. 64 Operations Review pg. 11 Notes to Financial Statements pg. 68 difficulties in connection with mining or development activities; the speculative nature of gold exploration Reserves: Replacement and Growth pg. 13 Reserves pg. 109 and development, including the risks of diminishing quantities or grades of reserves; and the risks involved Operational Review pg. 18 Board of Directors and Officers pg. 116 in the exploration, development and mining business. These factors are discussed in greater detail in Printed in Canada on recycled paper © Copyright 2004 Barrick Gold Corporation Concept and Design: Genesis Inc. Typesetting: Design: Genesis Inc. Typesetting: Barrick Gold Corporation Concept and © Copyright 2004 Printed in Canada on recycled paper Financial Strategy pg. 20 Shareholder Information pg. 118 Barrick’s most recent Form 40-F/Annual Information Form on file with the US Securities and Exchange Corporate Information pg. 120 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. TT36264-Barrick36264-Barrick AARR Cvr.inddCvr.indd 2 33/10/04/10/04 112:27:472:27:47 PPMM FINANCIAL HIGHLIGHTS 2003 Year in Review Barrick met its production and total cash cost targets for the year, as it advanced its development plans to bring four major new mines into production beginning in 2005. Financial Highlights (in millions of US dollars, except per share data) (US GAAP basis) 2003 2002 2001 Gold Sales $2,035 $1,967 $1,989 Net Income for the Year 200 193 96 Operating Cash Flow 521 589 588 Operating Cash Flow Excluding 607 589 588 Inmet Settlement Cash and Equivalents 970 1,044 779 Shareholders’ Equity 3,494 3,334 3,192 Net Income per Share (Diluted) 0.37 0.36 0.18 Operating Cash Flow per Share 0.97 1.09 1.10 Operating Cash Flow per Share 1.13 1.09 1.10 Excluding Inmet Settlement1 Dividends per Share 0.22 0.22 0.22 Operating Highlights Gold Production (thousands of ounces) 5,510 5,695 6,124 Average Realized Gold Price per Ounce $366 $339 $317 Total Cash Costs per Ounce1 $189 $177 $162 Total Production Costs per Ounce1 $279 $268 $247 Reserves: Proven and Probable (thousands of ounces) 85,952 86,927 82,272 Gold Hedge Position (millions of ounces) 15.5 18.1 24.1 Financial Review > In 2003 gold revenue increased, as rising spot gold prices more than offset lower production due to the planned closure of five mines in 2002. > Earnings were slightly higher in 2003 compared to 2002, as higher realized gold prices combined with a $71 million non-hedge derivative gain, and $39 million in asset sales more than offset higher total cash costs per ounce, $33 million higher exploration and business development costs and a $16 million charge related to the settlement of the Inmet litigation. > In 2003 operating cash flow was slightly lower than 2002. Excluding the impact of the $86 million Inmet settlement, operating cash flow was higher than 2002, as higher realized gold prices more than offset increased total cash costs and higher cash payments for income taxes. > Over the course of the year, the Company bought back 8.75 million common shares at a total cost of $154 million. > The year-end gold hedge position declined to 15.5 million ounces, down 2.6 million ounces from the previous year-end. The position has been reduced by 8.6 million ounces, or 36%, over the past two years. 1. See page 58 for a discussion of non-GAAP measures. 1 LETTER TO SHAREHOLDERS A Progress Report What we’ve accomplished and the changes we’ve made, as Barrick builds our next generation of mines. Dear Shareholders: Together, we’ve come through a milestone To be sure, this past year saw significant year, both for Barrick and for the gold economic and political uncertainty, industry. We are encouraged by the strong leading, in part, to the improved gold price. gold environment we experienced in 2003, With continued pressure on the US dollar and and are poised to benefit in 2004 and beyond the war in Iraq, gold played its historic role from the transformation of our Company as a safe haven and store of value in difficult that is well underway. That transformation times, reaching an almost 14-year high will continue in 2004 as we build our four of $415. Based on our reading of the exciting new development projects, and fundamentals, we see the rally as sustainable, extend the life and contributions of our with significant upside potential. When you existing properties. couple gold’s strengths with those of Barrick, you can see why we believe strongly that this As a company, we are focused on broadening is a great time to be building new mines and our leadership position in the industry. bringing new ounces into production. This process has involved implementing major changes – including a new As you’ll notice from this year’s cover, organizational design, strengthened our approach in this report is to start with operations and new financial strategies. what we said we’d do, report on what we did – both in terms of work completed and work 2 LETTER TO SHAREHOLDERS underway – and share with you our plan for financial strategies and change our corporate what’s next, to restore our company to its organization to fit the global company historic position as the investment of choice we’ve become. Our view was that if we were in the world gold industry. This, then, diligent in doing these things, shareholders is a progress report in every sense of that would appreciate that Barrick has the assets, term: Not simply a report on what the experience and the strategy to create we’ve accomplished – but on the changes value now and in the future. we’ve made, and the opportunities we’re creating as Barrick works to build its future. What We Did. What We Said. If 2003 was the year to execute – we did. We met our targets, producing 5.51 million Our fundamentals are strong. With the ounces at $189 an ounce1, making Barrick portfolio of assets Barrick had in place the lowest-cost senior producer in the industry.