BARRICK

ANNUAL REPORT 2001 BARRICK

1983 North America

1994 South America BUILT TO LAST

While entrepreneurial verve has provided the spirit, financial discipline has provided the foundation beneath Barrick’s rapid growth… in the form of an A-rated

balance sheet, and the $2 billion in added revenues generated by the forward sales program. These lasting strengths have driven Barrick’s expansion from its

beginnings in North America… to its South American holdings in Peru, Chile and Argentina… to Bulyanhulu, its first mine in Africa… and to Australia: together,

a global platform for profitable growth.

1999 Africa 2001 Australia Profile

arrick Gold Corporation is a leading international gold company with Bamong the largest market capitalizations in the industry. The Company has operating mines and development projects in the United States, Peru, Tanzania, Chile, Argentina, Australia and Canada.

Barrick produced 6.1 million ounces of gold in 2001 at a total cash cost of $162 per ounce. With the industry’s only A-rated balance sheet, a portfolio of long-life, low-cost properties on four continents and proven and probable gold reserves of 82.3 million ounces, as well as significant exploration programs currently underway, the Company is well positioned for growth.

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.

CONTENTS Financial Highlights...... 4 Financial Statements...... 58

Chairman’s Message...... 6 Notes to Financial Statements...... 62

Letter to Shareholders...... 8 Directors and Officers...... 94

Detailed Financial Table of Contents...... 24 Shareholder Information...... 96

Management’s Discussion and Analysis...... 25 Corporate Information...... 98

All dollar amounts given in United States dollars unless otherwise indicated. Highlights

Significant Events Gold Production (millions of ounces)

First Quarter Third Quarter 6.1 • Joint Operating Agreement • Set integration plans in 2.4 with Newmont ended, motion (three review teams: 3.7 3.7 3.2 3.1 3.1 allowing greater flexibility financial and administration; 3.0 3.7 2.3

within the Betze-Post operations; and Pascua- 1.6 1.3 Pit – increasing the mining Lama/Veladero development) rate and lowering unit • Operations review team 92 93 94 95 9697 98 99 00 01 mining costs. visited all eight major Barrick Homestake • Homestake acquired the operating properties on four advanced-stage Cowal continents. Mineral Reserves - Gold project in Australia. • Homestake/Barrick joint (millions of ounces) venture announced updated

Second Quarter capital and operating cost 82.3 • Production began at parameters for the Veladero 59.3 58.5 51.5 51.1 Bulyanhulu, Barrick’s newest project. 50.3 57.8 24.5 37.6 mine on an entirely new 36.5 28.4 continent – Africa. Fourth Quarter 25.7 • Announced the largest • Completed Rodeo, part of

transaction in Company the Meikle underground mine 92 93 94 95 9697 98 99 00 01 history – Homestake merger. at Goldstrike. Barrick Homestake • Completed Homestake merger. • Announced new management structure. • Adopted US GAAP for communicating financial results to investment community. Highlights

change (US GAAP basis) 1999 2000 2001 2000-2001

Financial Highlights (in millions of dollars except per share data) Gold sales $ 2,057 $ 1,936 $ 1,989 +3% Net income (loss) for the year 244 (1,189) 96 Operating cash flow 820 940 721 -23% Cash and short-term investments 766 822 733 -11% Shareholders’ equity 4,514 3,190 3,192 Net income (loss) per share (diluted) 0.45 (2.22) 0.18 Operating cash flow per share 1.55 1.76 1.35 -23% Dividends per share 0.20 0.22 0.22

Operating Highlights

Gold production (thousands of ounces) 5,801 5,950 6,124 +3% Total cash costs per ounce $ 152 $ 155 $ 162 +5% Total production costs per ounce $ 247 $ 240 $ 247 +3%

Reserves: proven and probable (thousands of ounces) 78,049 79,300 82,272 +4% BARRICK ANNUAL REPORT 2001 CHAIRMAN’S MESSAGE 6 1983 S Built toLast than any of our peers.our anyof than availablegrowthopportunities importantly,mostbase, and, more large,low-cost,a diverseasset industry,the in with sheet strongestthe balancehas Barrick history,brief result:despiteour corporateto responsibility. The commitment a discipline,with performanceand financial havealwaysprioritiestop our been market;instead,gold the in trend everyfleeting with alter not does corporate– vision strategyour – companysecond.Our mining a as firstbusinessand a as Barrick we’vecommittedoperatingtobeen 1983,Companyin the founding Sincemission. original our from haveneverwewavered Barrick, At well-articulatedmission. and clear,a companyneeds consistent matter.a Forhappen, to that successanother Real,long-term is time. right the at place right the gold business gold enteredBarrick America North they happen to be in be to happen they because – briefly success – companiesenjoyome

1984 Smith Bob by led team operating an it, with and Acquired– Camflo

1985 the through and, Africa in mine process.firstthe our Weopened in companyglobal truly a becoming four,twofromtocontinents reachincreasetoconditionsour advantageindustryweakof strengthtaketofinancial its used ever.stronger2001than Barrick emergedfromwereportto happy t the tophilosophywas put operatingour strengthof the lowestaverage1978, sinceprice producer at the time the producerat Company’slargest the Utah, in Mine MercurAcquiredthe In 2001, with gold at its at gold with 2001, In Peter Munk, Chairman PeterMunk, 1986 est. I’m est.

1987 potential deep its drilling began and Property,strike heapGold- leach small Acquiredthe COMPANIESWORLD THE IN BESTTHE WITH COMPETING CAPABLEONE – OF PROFITABLEPRODUCER GOLD MOSTTHE TOBE BUT LARGESTPRODUCER,GOLD THE NOTTOBE IS GOAL OUR Latin America. Latin developmentin properties neighboring our unified and reservepercent36bygold base increasedalsoBarrick’s but continent,new a expandintoto us allowedonly producersnot gold – world’slower-costlargerand Buying overtook f HomestakeCompany,Mining 125-year-oldthe purchaseof Homestake – one of the of Homestakeone – our mines in Australia.in mines our 1988 Goldstrike PropertyGoldstrike the on deposit, discoveredMeikle the crewExploration DevelopmentPlan Betze million $365 the Announced

1989

CHAIRMAN’S MESSAGE CHAIRMAN’S 2001 REPORT ANNUAL BARRICK 7 1996 alue for this ommitment driven driven by Acquired Arequipa Acquired and the Resources Pierina project. exploration the Completed second mine on the Goldstrike – Property the high-grade Meikle Mine 1995 Thank Thank you all for your continued peers. After peers. all, Barrick is the only global gold todayproducer whose still are activelyfounders in place. That helps why explain to the adheres Company very principles that made it, and continues to be a verve, strong entrepreneurial sense of spirit, and a c sustained v to generating our quest As always, shareholders. returns exceptional to create proud to We’re remains unabated. be unlike any other in company our industry. support. PETER MUNK Chairman March 8, 2002 South America Acquired Lac Acquired and Minerals Ltd. a large land package in South America 1994

Completed the Completed Mine Betze-Post – 1.4 produced million ounces 1993 What What do I see looking out Barrick is getting bigger, It is not an accident that Barrick revenues over 14 years, and 14 over helped years, revenues credit Barrick the achieve only “A” in rating the gold mining industry. More consolidation, through 2002? for one thing. I this welcome trend: not consolidation the only forces industry to adopt financial greater tremendous it discipline, offers opportunities that to companies the them. have to grab wherewithal I there will believe be Ultimately, only a left companies few in the My business. goal is to make sure that Barrick is one of them. but our goal certainly, is not to more of ounces gold produce than else – anyone that yardstick is and outdated one-dimensional. that we believe Instead, success is today about managing the risks inherent in mining a with commodity price swings – unpredictable and in so doing, maximizing profitability and on returns capital. stands out in from its so many ways 1992 anies approach Entered into the Entered Joint Operating with Agreement Newmont to develop the high-grade Post expanding ore body, the Mine Betze-Post 1991 Our many longtime shareholders refused steadfastly have We will recall will that recall when Barrick started with a single mine at Goldstrike, our Nevada, goal to be was the North to American alternative South African gold companies. As times changed and the Company strategically, we expanded grew, to first South America and now to Africa and this Despite Australia. change in our focus, geographic – the success hallmark of Barrick’s our keen entrepreneurial in the continueworld. We to size up opportunities valuable and seize them quickly. financial to gamble the Company’s health on the price of a volatile of The this results commodity. are clear: responsibility fiscal year in and sales out, year our forward has ensured a program strong, contributed cash flow, predictable more than $2 billion in additional – has remained unchanged, even as become one of the we’ve largest and gold most comp profitable 1990 BARRICK ANNUAL REPORT 2001 LETTER TO SHAREHOLDERS 8

1997 2 Fellow shareholders, and on the opportunities I see ahead. see I opportunities the on and ProgramSales – Gold Premium and assetbase,qualitysheetbalance our – strengthstrue and tried our on based confidenceprice.My is gold the of equity,returnon and flow regardless growtocashearnings, ago months 12 werewebetter-positioned than and strongerbelieveis I which – Barrick new,shareholders,and old today’sto our ofintroduce all and Barrick, Homestakeformer shareholdersto 18-yearhistory. brief everour beforethan in shareholdersstrongreturnsour for profitableachievingfor growthand opportunities and haveoptions more Homestake.result,nowwewith a As mergerAustraliaintothe through and April, in Bulyanhulu– newest– mine our of opening the with Africainto geographicWereachexpandedour continents.fouroperations on mining producer,low-costmajor eight with global truly a intoAmerica South and North companyin mining leading a In this letter, this In I’dwelcome tolike Barrick transformedBarrick fromitself Company,our initiativesfor as strongyearof wasa 001 expenditures in 14 years,trackexpendituresto14 on in lowestour capitalat looking also producer.profilemajor anyof We’re lowestrisk the political and debt netinvestments,termno virtually short- and cashover $700in million marketcapitalization,billion $10 a scale,with and quality both in leader industry’sgold the 2002as startwe together.opportunities assetsand those bring wecreateto as going valuewe’reenvironment,the and today’sin seewe opportunities the assets,current our you with discuss With the addition of Homestake,of addition the With wanttonextfewpages, I the In Randall Oliphant, President & Chief ExecutiveOfficerChief President& RandallOliphant,

1998 November enteredin production discovery– ofdate from months 31 in mine Pierina Completedthe

THAN EVER BEFORE.EVER THAN OPPORTUNITIESMORE WITH INDUSTRY,THE BASEASSETIN STRONGESTTHE IS BELIEVE I STRENGTHHAVE CREATED WHAT FINANCIAL AND SPIRIT ENTREPRENEURIAL …OUR returns.financial strong,successforconsistentis profitableyardstickounces.Our mostratherthe ounces,mostbut the producing on not is focus our world’sthe ofproducers,largest gold profileproductionone makes this us While low-cost2001. in production ouncesof million ounces,6 after reservesrecordour a tomillion 82 reservefact,base.we’veIn increased low-cost,a long-lifeon building Companyhistory.in flowscashfreegeneratehighest the On the operationalwe’reside,the On third continent – Africa – continentthird Barrick’sexpanding a presenceto project,nickelKabanga the and PropertyBulyanhulu the including AcquiredResources,Sutton Africa

1999

As we proceed, As our we proceed, focus is on these are objectives Of course, • earnings Increasing and cash flow; • on return equity; Improving and • Maintaining a balance sheet. strong of consolidation of and consolidation rationalization. financial three key objectives: grounded in the disciplined manage- ment approach that guides us. This is by our exemplified focus on and acquiring, developing exploring, mines; the operating lowest-cost maintaining and enhancing the of power our income-generating Australia Completed the Completed merger Homestake and extended reach to a Barrick’s fourth continent – Australia Completed construction Completed of Rodeo at Goldstrike and Bulyanhulu in Tanzania 2001

In strategic terms, 2001 was what 2001 terms, was In strategic marginally lower production than lower marginally 2001 as we costs, at continue comparable higher- closing down six of our older, mines. But cost frame” if you “freeze and 2002 look at those numbers in isolation, see you the won’t true of value Barrick going forward. is 2002 I call a “positioning” year. the we year begin the task of taking our promising new forward, projects in South and America, Australia Africa, and on capitalizing the larger, Barrick stronger during this period

Completed the Completed roaster state-of-the-art at facility the Goldstrike to Property flexibility increase processing Pangea Goldfields, which Acquired fit the district development Company’s in program Tanzania 2000 In 2001, despite an average In gold 2001, an despite average we are projecting 2002, about For

price price at since the level its late lowest our earnings merger 1970s, before million, $245 were and charges related and $96 million after the charges. Our cash totaled operating flows million. a at While, $721 healthy 8 our on percent, return equity equaled our of we cost capital, working and we’re should do better, now to do just that. million of ounces gold 5.7 production at a cash of per total cost $167 ounce, BARRICK ANNUAL REPORT 2001 LETTER TO SHAREHOLDERS 10 “The HomestakemergeriswhatIcallan‘enabler other accretivetransactions.” assets, butalsostrengthensouroptionstocarryout transaction’: onethatdoesn’t justaddattractive have a business strategybusinesstakeshave a that companiesmust public global of sophisticatedmarkets,management today’sin believethat We prices.exposuregold volatileto minimizesdownsidereturns,also it maximizing rating. creditWhile “A” our tocontributing as wellprice, as gold spot the topremiumgenerating a of 14-yearreturns,a trackrecordwith maximizetoProgramallowed us has reserves.gold our This asset– increasesrevenuemain our from that activity hedging unique our is companies.other from Barrick Programdifferentiatesthis truly year.$271lastof It’s that fairsayto averagerangean $400-per-ounceto the from pricesdeclined gold when period a during this All dividends. in dollars billion half a nearly paid and Goldstrikeroaster,our Bulyanhuluand Rodeo,Pierina, Meikle, build to billion $1.2 further twoa companiescash,for acquiretoWe deployedmillion $500 assetbase.expandour and sheet balancestrengthentoour used we revenueswhich additional 1996,since generated$1.7in has about billion ProgramSales Gold Premium Our MANAGEMENT DISCIPLINED industry.gold the in sheetbalance strongestcreatetocombinethe which of All debt. of use prudent the Program;Sales and Gold Premium The Premium Gold Sales ProgramSales Gold PremiumThe go straight to our bottomline.straightour to go should benefits strengthen,the pricesgold if that ensuring while predictability,securityand givesus It’sthat approachdividends. an and year,capitalexpendituresincluding covertorequirementscash the for sufficientflow cash with providesus and ensuresstrongearnings that price,one floor minimum providea always,ounce.As $365will an this at sold being balance the price,with spot the percentat productionof50 time.of period longer overa protectionprice and income higher accruingof benefitsextending the therebylengthened, havebeen capacity.schedulesdelivery our But income-generatingits maintaining percentreserves,22of or thus ounces,million 18 about at unchanged ProgramThethe remainsofsize prevailingmarketconditions. reflecttoschedule delivery our toadjustment an announcedwe interestand rate environment, merger,price gold current the Homestakethe of light conditions.In Programprevailingour fit tomarket flexibility.tune fine to us enables This alwaysmaintaintohas been gold. ofprice the on play a being simply ratherthan improver returnsand advantageeverytoopportunityof This year,This sell will Barrick strategy,this keyofcomponent A educe risk, educe A vision rooted in North America

arrick’s North American operations establish the Company Bas the continent’s largest gold producer, contributing over 3.3 million ounces of gold – 55 percent of the Company’s overall 2001 production – at $179 per ounce. 2001 saw record results at Round

North American Contribution Mountain, Eskay Creek’s to Production – 2001 second-best year ever, and another solid year at our flagship Goldstrike 55% Property, which produced over 2 million ounces.

North American Contribution Opportunities to create value within the to Reserves – 2001 Company’s North American portfolio include continued exploration around existing mines, 34% consolidation of joint ventures and property acquisitions. BARRICK ANNUAL REPORT 2001 LETTER TO SHAREHOLDERS 12 “In 2001…Barricktransformeditselffroma four continents.” eight majorlow-costminingoperationson America intoatrulyglobalproducer, with leading miningcompanyinNorthandSouth ties for organic growth on the horizon. the organicgrowthforon ties we’veopportuni- significant some got portfolio,current our performersin beyond.2002and in on build tobase stronga givesBarrick assetsthat qualityof mix a Australia– and Americas,A the in properties keyour ofsnapshots seeyou’ll before.pages,Elsewherethese in everthan opportunitiesmore with industry,the strongestin assetbase the believeis I created what strengthhas financial and spirit entrepreneurialour ofcombination The ASSETSOPPORTUNITIESAND Pascua-Lama/Veladeroits with – • being capable of producingofcapable being as districtreturns. this Wesee improvecostsand economic lower scale of economies our or silver and gold as Pascua-Lamadevelopmentof operation,followedfull-scale by leach heap One Phase a for place in plan we’re a putting developing toapproach unified taketoa us PropertyPascua-Lamatoallows Barrick’s,proximitythe the ofand percent100 now is venture– joint merger,Veladero previouslya – property.Homestake the With world’slargestundeveloped gold reserve,gold million-ounce25 the Theyinclude: proventheseto addition In this district. In 2002,In district. this pricesimprove frica opportunities at variousstagesat opportunities varietyhaveorganicgrowtha of way.big a Taken together, we DevelopmentProgram paysoffin District explorationstageour within early-tocommitment our yearthat • In Australia,explorationcontinued In • toAmericas the from Moving • EskayweCreek,at Canada, In • 3 million ounces of reserves.ouncesof million 3 nearlyCowal its about and increasinglyoptimistic makesus realizevalue.toits options of varietya offeringright,us own its assetin significant a becoming fastis Sutton– acquisitionthe Bulyanhuluacquiredin with exciting– largedepositnickelour fact,Kabanga,In region.in the several explorationat projects excellenton resultsas well as increasedofproduction,base a on DevelopmentProgrambuild will District Bulyanhulu,our at Africa, existingtoinfrastructure.close low-costprospectof production undergroundofferingthe– lifebreathenewto into the PrRen the at and Banshee at Mine, Meikle the at reserves.U.S.,explorationthe In pr expandtoboth substantialopportunities see ounce.an $125 about at 1.5 We also think 2002 could be the 2002be couldthink We also million ouncesmillion oduction and oduction operty promisesoperty annually Meeting the challenges in South America

arrick’s premier South American operation, the Pierina Mine in BPeru, was the Company’s second-largest cash flow generator – producing over 900,000 ounces of gold at cash costs of $40 per ounce in 2001 and in the process setting property records. A development plan is underway for our Veladero project, part of the Pascua-Lama/Veladero district, newly unified with the Homestake merger into a single, 25 million-ounce district straddling the Chile/Argentina border. It ranks as one of the largest undeveloped gold districts in the world. The development of Veladero and Pascua- Lama, as well as advanced-stage exploration projects in Peru, have the potential to provide Barrick with the ability to create substantial value through its South American properties.

South American Contribution South American Contribution to Production – 2001 to Reserves – 2001

17% 34% BARRICK ANNUAL REPORT 2001 LETTER TO SHAREHOLDERS 14 “…in today’s timeofchange,controllingcosts is theonlyconstant.” in British Columbia, with high-gradewith Columbia, British in propertypremier truly a Creek, Eskay Homestakenew properties. five with Bulyanhulu– and Pierina Goldstrike,world-classassets– togetherbroughtBarrick’s three equity.improvereturnon and our share per flowcash and earnings growthtoin lead believe wewill 35percentstock,morewhich costslowissuingby same the at percentincrease50 tobyproduction Homestake,opportunity an sawwe at lookedoperations.we Whenand assetscompatibilityour ofthe by whereverworld. operatethe we in cardcalling a is communitybuilding environmentalresponsibility and common corporateresponsibility. Our Barrick’sshared tocommitment values-driven,value-and Homestake wascompanyboth that culture.a As corporateofterms in strongfit a Homestakethe merger.consider ForBarrick. valueat another,building waywe’reone justareI’ve outlined organicgrowthTheopportunities VALUETHE HOMESTAKEOF assetbase.current our coststhan totalproductionhavelowerand cash equity,returnon projectsthese as improved and flowcash and earnings growthsignificantin forpotential development.ofTheyoffer the In North America, they include: theyAmerica, North In mergerthe that Consider wasmatchedculturalfit that And ToHomestakewith, wasbegin emphasis on workersafety,on emphasis how we plan to do it: do to plan wehow assetbase.profitHere’sthis from additional of $100 about basis, ounce per create,toa is on goal futureOur production.ouncesof merger,acquiredmillion 20Barrick operationalside.the on benefits additional seewe that, forwardbeyondgoing and basis – sustainable a on more and amount Weforesee2002plan. this achieving the into built after-taxsavings in million synergies,$60 financial with estimateadministrationofand original achievedour havethan more Properties.Yilgarn the up make that minesthree and mine,largest gold Australia’sPit, Super Kalgoorlie the of half ounce: per $186 at gold ouncesof million a about generatingofcapablecost mines quality,ofgroup comprised a low- low-costproducers. respectively.solid good, areBoth Nevada,and venturesOntario in joint MountainRound and Hemlo the HomestakeBarrickbrought also ton. per silverouncesof55 and gold reservesaveragingofounce over an • Of that $100 per ounce profit,ounce one- per $100 that Of • or about $33 per ounce.per $33 about or production,ouncesof million 2 than lesslittlespreadacross a synergiesin million $60 our administrationcostsavings.That’s and financefromcome thirdwill Case in point: with the Homestakethe with point: in Case administrationfront,wethe On Australia,Homestake’sIn holdings Record speed in Africa

African Contribution n Africa, Barrick’s newest mine is Bulyanhulu in to Production – 2001 Tanzania, where gold reserves have increased 4% I from 3.6 million to 12 million ounces in less than three years. Between April and year’s end, Bulyanhulu produced more than 240,000 ounces of gold at

African Contribution $197 per ounce. In addition, to Reserves – 2001 Barrick is pursuing the largest

15% early-stage exploration program in Company history in Tanzania. Beyond Bulyanhulu, Barrick holds the largest land position in the Lake Victoria goldfields, one of the top areas of the world for major new discoveries. With reserves expanding at Bulyanhulu, a development plan underway at the Tulawaka property, and ongoing exploration in the region, the Company has many opportunities to create value through its Tanzanian asset base. BARRICK ANNUAL REPORT 2001 LETTER TO SHAREHOLDERS 16 “Barrick’s edgeisanassetyouwon’t findin we bringtotheworkdo.” a line-itemonourbalancesheet:thepassion out other accretiveother transactions.out carryto options strengthensour also attractiveadd doesn’tassets,just but “enablertransaction”:that an one call I Homestakewhat The mergeris EFFECT”“ENABLER THE • We plan to get the remaining the getto We plan • $100 that one-thirdof Another • • Pursue individual propertyindividual Pursue • three the Consolidateof some • the life of the properties.the oflife the overounce per $30 about orderof profits,createthe additional on to Pascua-Lama/Veladero– district unified the at particularly – savings operatingachievecostcapitaland existinginfrastructureour and ventures,consolidatejoint leverage reduceproduction,costs, expandtoopportunities We see thirdoperationalfromsynergies. ounce.per $68 historicalaverageour below of well prices– gold overspot ounce$35to$30per about of revenuepremium a throughside, achieveexpecttothe fromwe transactions made possible bypossible transactions made accretiveThesefinancially are existingassets.our to close mines or depositsacquiring as such “add-ons”,transactionscallwe owner/operator.one havingof value-creationthe benefits gaining toview a with wasengaged, Homestakeventureswhich joint in We’reto:potential exploringthe unit costspercent25byoverunit the operations,we’vecut to able been fact,our control.acrosscanIn all companycostincreases,no which overyears,fivethose excluding power $192toounce, $184 fromper $8 up yearswasfiveYetago. costsonly are it processedwhat being half todayis gradethe coursemining, ofnormal we’vereachedreservethe gradein Goldstrike,At instance,for where constant.only controllingthe costsis today’schange,in ofcontrol. And time concentratecanyoumustyou what on going, can’tyoucontrolis pricewhere when that’sconvictionthat And our properties.our all tocommonfocus wantunderscoretoI I’ve a outlined, opportunities the Now,to addition in COSTSCONTROLLING • Enter into largercorporateinto Enter • Executeswaps.assetour As • strength of our balance sheet.balance our strengthof the sharesand our ofliquidity the companygiven Barrick,like largerdigesteda byeasilymore are that ones transactions– companies.realall valuefor naturalowner’screating hands, assetswayb put toone this for positiveletter,a consolidationis his notesin PeterMunk Chairman infrastructure.teamsand existingstrongmanagement properties’proximitythe our to Controllingcostscreates value. industry.Assetswaps are ack in the in ack Making the leap to Australia

n Australia, our operations produced over 900,000 ounces I at a cash cost of $186 per ounce in 2001. As well as adding Homestake’s Australian assets at Kalgoorlie and the Yilgarn district, the merger gives the Company a significant portfolio of exploration projects, the most advanced of which is the nearly 3 million-ounce Cowal project, where work on an updated development plan is now underway. The Company’s focus in 2002 will be on creating value through increased production and reserves at key Australian assets, and pursuing early-stage exploration programs.

Australian Contribution Australian Contribution to Production – 2001 to Reserves – 2001

15% 14% “…our focus is not on producing the most ounces, but rather the most profitable ounces. Our yardstick for success is strong, consistent financial returns.”

past five years. That’s a tribute to I’m talking about the level of our Chief Operating Officer, John conviction and commitment at Barrick, 18 Carrington, and his team of what the passion we bring to the work we I’d argue are the most talented do. That’s our edge – the real reason mine managers in this industry. Barrick is built to last. Another example: during the And yet the thing that really Homestake integration, we tasked an inspires me isn’t just that we’re Operations Review Team to visit all built to last, but that Barrick’s built eight of our major properties, with an to grow – ready to turn our assets eye toward increasing production and and opportunities into value for LETTER TO LETTER SHAREHOLDERS TO lowering costs. The opportunities they our shareholders. uncovered are significant, and we’ll be Looking out through 2002 working with our management teams and beyond, we not only have at each mine throughout 2002 to opportunities for internal growth, build those benefits into our plans. given our strong balance sheet, steady We’ve also streamlined our operating cash flows and diversified asset base, structure, added significant bench but we’re also well positioned to strength, and established some key participate in the continuing industry new positions in the Company. In each consolidation – whether through joint

BARRICK BARRICK ANNUAL REPORT 2001 case, I’m confident the steps we’ve ventures, or property or company taken will greatly enhance our ability acquisitions. In short, we’ve got a to take our unit costs even lower. strategy in place that gives us considerable strength in a changing BUILT TO GROW market, plus the flexibility we need to In these few pages, whether it’s turn opportunity to advantage. the strong and predictable revenue generated through our Premium Gold Sales Program, the promise of our property portfolio, or the enabler effect provided by the Homestake RANDALL OLIPHANT merger, I’ve mentioned many of the President and attributes Barrick brings to bear on Chief Executive Officer the opportunities around us. I want March 8, 2002 to close by citing an attribute you won’t find in a line-item on our balance sheet: 2001 Objectives (pre-merger) Results

Smooth start-up of Bulyanhulu and • Combined Barrick/Homestake produced 6.1 million ounces, of which 1 Rodeo, which will contribute to Barrick’s operations produced 3.74 million – marginally lower than plan, an estimated 3.8 million ounces due primarily to lower production from El Indio. of total production.

Maintain low costs of $156 per • Combined Barrick/Homestake total cash costs were $162 per ounce, 2 ounce. with Barrick’s operations totaling $159 per ounce – higher than plan due to an unbudgeted power increase in Nevada, and higher costs at El Indio, which closed in February 2002.

Achieve earnings of $0.70 to • The parameters for comparing earnings performance against targets 3 $0.75 cents per share. changed with the Homestake merger and the subsequent conversion to US GAAP for financial reporting purposes. • Barrick’s reported earnings of $0.46 per share (before merger-related charges) reflect the merger and the conversion to US GAAP. • Barrick’s pre-merger earnings were lower than plan ($0.65 per share under Canadian GAAP) primarily due to higher power and amortization costs at Goldstrike. • 2001 earnings don’t reflect expected merger-driven financial synergies of $60 million after tax and operating improvements.

Continue work on phased • Expansion into the East Zone began in the second quarter of 2001, 4 expansion of Bulyanhulu and while optimization plans for the current reserves are scheduled for expansion of reserves and completion in the first half of 2002. Reserves expanded 20% to 12 million resources. ounces after producing 242,000 ounces in the Mine’s first year.

Pursue disciplined acquisitions. • Merged with Homestake Mining Company – announced in June and 5 completed in December. • Homestake brings a low-cost reserve base and strong balance sheet, similar to Barrick. • Announced anticipated financial synergies of $60 million annually. • Opportunities to increase production and lower costs were identified at most operations, which the operating group will work to realize in 2002-2003.

2002 Objectives

Produce 5.7 million ounces of gold at costs of less Increase reserves at development projects, 1 than $170 per ounce. 4 as well as bring advanced-stage exploration projects to reserve status. Implement opportunities at each of the Company’s 2 mines to maximize operating contributions. Pursue disciplined acquisitions and add-on transactions, building off of the larger, global Advance development plans at the following 5 presence of the new Barrick. 3 properties: • Veladero (Argentina) • Cowal (Australia) • Bulyanhulu (Tanzania) • Tulawaka (Tanzania) BARRICK ANNUAL REPORT 2001 CORPORATE RESPONSIBILITY 20 Responsibility Corporate aboriginal student games last year.last gamesstudent aboriginal national the at title the won who Westernthe likeAustralian team teams, sports youthfor support Communityinclude contributions EskayMine.Creekprogramthe at apprenticeshipgraduatean of firstwasthe Bob Chico Millwright “Barrick’s reputationrestsonresponsibility. C THE BARRICK WAYBARRICK THE youth programs,youthteamsand sports operationscareextendand healthto our that support the or teamtitle; the wontheywhere year– last gamesstudent aboriginal national attendtostudentsthe aboriginal of Western a sentAustralian teamthat Australianbyoperations donation communitytocauses, the like pre-taxincomepercentannual of 1 donateto is That’spolicy our why realinvolvementdifference.a make to human and financial takesboth It communitiesthemselves.the by defined as priorities and needs localtailoredmeetto is it when effectivemost is communitybuilding that shownexperience has Our BUILDING COMMUNITY world. the around operationsour of each at apply we standardexcellencesingle of a – principle it’sguiding afterthought; a operate.an not Foris this Barrick, might ariseintheworld.” that precedesuswhereveropportunities Good corporatecitizenshipisacallingcard belongs whereverbelongs we and home at begins orporateresponsibility communitybuilding. Company’stocommitment the of emblem an been has Betze-Postmines,the Meikle to and Nevada,GoldstrikePropertyhome in decade,Barrick’sa than flagship Tahltancommunities. stakeholders,local the including all strongtorelationshipswith achievedsuccess largelydue has which Columbia, British in EskayMine Creekthe at it seecan AustralianYououtback.the in remoteservingServicecommunities RoyalDoctorthe keephelpsFlying that donation Mine Plutonic the in volunteerYoubasis.a this seecan servicesambulanceon fireand local the run Nevadafamilieswho in their employeesMountainRoundand fabric.the Youtheir in this seecan of part communities,becomewe strengthenuniversities.only We not • Barrick operationshavedonated Barrick • and charities. and Nevadatodecadecommunities last overthe million $11 than more The Goldstrike model – for morefor – Goldstrikemodel The – PeterMunk “…the factofthematteris,corporate impact, we have applied the Goldstrikethe haveapplied weimpact, communityphilosophybusinessitsto – economicallyandsocially, forallconcerned.” citizenship isgoodbusiness.Itpaysdividends responsibility isn’t allaboutaltruism:good Barrick’spowerin buying • “Buy a Goldstrikemaintains • Nevada’sGrossState Product. everyyeartobillion $1.5 contributesabout and jobs, 14,000dir statethe Nevada frombusinesses. services and goods of worth $200million yearpurchasesthan more everyNevadaand First”policy In an extensionbest-practicesofan In from the Tanzanianthe from community. overwhelmingdrawnmajority contractors,as more 600 the and directlywomen and men 1,000 Bulyanhuluemploysthan more Barrick’sat operatingsubsidiary ImpactEmployment alreadysignificant.is impact Barrick’s2001,of secondquarter the in production began which Tanzania,in BulyanhuluMine the At line. on brings it mine new eachresponsibilitiesat building embracescommunity-Barrick its THE BARRICK WAYBARRICK THE AT BULYANHULU supports more than more supports ect and indirect and ect skills for local entrepreneurs.localfor skills occupationaltraining in as well as farmers,forhusbandry animal and trainingprogramsrotationcrop in Companysupports Thealso on. workto them fordesks as well as transportationschoolchildrenfor systems,irrigation and provided waterconstructeddrinking new improvedfacilities,and roads,built carehealthnew funded has Barrick 1998, in production began which Pierina the Near world. operationsthe aroundour at model 30,000 villagers along the route.30,000the along villagers waterof the needs meets also which mine, the VictoriaLaketo waterfromkm 47pipeline a built Barrick’sBulyanhulusubsidiary CommunityInfrastructure unrelatedmining. to entrepreneursjobssustainable in providesalso traininglocalfor workforce;mining Companythe the preparingon solely not is focus trainingTanzanians.forjob The in investedmillion $6 than more Barrick’shas operatingsubsidiary Development TrainingEconomicand – RandallOliphant Mine in Peru, in Mine governmentalorganization. respectednon- a African with cooperationin communityhealth preventiondiseaseimproved and programpromotion,health of sustainable a funding Companyis refurbishingexistingthe ones, facilitiesand communityforuse medicalnew building as well As CareHealth roads.regionalof upgradeinvestingthe as wellin as region,power the toelectric bring to million $15 than more Company,Supply Electric investing Tanzaniathe with partneredalso It 1,500 patients per month. per patients 1,500 treatswhich clinic, mine the teamat medical the on nursea is villagers.DottoAlbinus localemployeesserveand both carefacilitieshealthnew which Tanzania in Mine from benefit Bulyanhuluthe Communitiesaround about

BARRICK ANNUAL REPORT 2001 CORPORATE RESPONSIBILITY 21 BARRICK ANNUAL REPORT 2001 CORPORATE RESPONSIBILITY 22 “Our senseofenvironmentalresponsibilityisnotjustanafterthought– at Barrickwefocusnotsimplyonvalue,butvaluesaswell.” philosophy tothecommunitiesaroundoursites–asevidencethat it’s integraltoourapproach:anextensionofBarrick’s ‘builttolast’ Pierina Mine in Peru. in Mine Pierina the servecommunitiesnearto built Barrick which School, Smith M. Robert the tothankshome,to close Localreceivechildreneducation an facilitiesemployeeforfamilies, while sports and amenities modern with complexhousing constructeda has BarrickMine, Pierina the At homes. firsttheir employeesmanybuy help providingguaranteesmortgage to million, $44 costof a 700at homes nearly built Goldstrike,has Barrick areaElkonear employees. the In for providessupport housing keycommunitytostability, Barrick a ownershipis home Believingthat Ownership Home and Housing $9.6about million. worth ships awardedscholar- 4,600 than more Programthe has 1986, in inception its Sincesecondaryeducation. post-employeesforBarrick funding programThis offersofchildren all ScholarshipProgram Smith M. RobertThe FAMILIESTHEIR AND FOREMPLOYEESCARING secondaryschool.through kindergartenfromeducation, accessqualityPierina tonear living president,formerprovideto children Company’sthe after named School, Smith M. Robert the built has Barrick Companyemployees. For example, just not community– the for benefits long-term on is focus Our EnvironmentalSystemManagement developedan has BarrickMine, Bulyanhuluopened newly the At minesites.ofvicinity the in animals programsofsafeguard toand plants number a operationsinclude Barrick ProtectingNature beyond.and preservedmine’sand the forlife protectedbe will they how out resources,logical spells also but cultural/archeo-and animals plants, local the documents only not that Assessment Environmental Impact comprehensivea processwith begins the Peru, in Mine Pierina the or Wales,CowalSouthNew in Project the be development.it Whether projectexistedto which prior that surpassesor equals that condition a restoreand naturalecosystems to effectsmining, ofthe minimize Barrick’stoguidelines. is goal environmentaland regulations all surpass or meettoseeks Companydevelopingthe mines, Whereveroperatingor is Barrick ENVIRONMENTALLEADERSHIP purchase.their providinginterest-free for loans employeesforhomesand 600 building is Bulyanhulu,Barrick at – RandallOliphant and commenced training in environ- with a combined total of over mental awareness for all employees. 50 environmental awards and Barrick maintains a nursery on-site commendations, including the to grow native trees for landscaping prestigious US President’s Council and revegetative purposes. for Environmental Quality. Recent awards include: Land Reclamation • 2001 Golden Gecko Award, Wherever possible, Barrick conducts presented to Australian land reclamation concurrently operations by the West Australian 23 with mining operations – with the Government for environmental reclamation process continuing after excellence in the resource a property’s mine life is over. Site industry; plus a Certificate of restoration includes contouring the Merit, presented to the Plutonic land, replacing topsoil, and seeding Mine for excellence in to re-establish the native flora. environmental management. Environmental staff at the Pierina Water Management • 2001 Excellence in Mine Mine in Peru check surface runoff for Barrick has high standards for Reclamation Award, presented

quality and flow. Careful monitoring RESPONSIBILITY CORPORATE maintaining the quality of water to the Bullfrog Mine in Nevada ensures the highest standards for it uses and releases into the by the state environmental and both surface and underground water. environment. Water waste and wildlife departments for post- conservation measures in use at mining land use. Bulyanhulu sustain that property’s • 2001 Excellence in Mine Recla- “zero-effluent discharge” policy, and mation Award, presented to the are reducing water consumption for Round Mountain, Manhattan some processes by 50 percent. minesite for recontouring and revegetation. Cultural Preservation • 2000 Excellence in Mine Barrick also works to protect BARRICK ANNUAL REPORT 2001 Reclamation Award, presented cultural and archeological resources. to Goldstrike by the Nevada At the Goldstrike Property, Barrick Division of Minerals in completed a three-year, $2.5 million recognition of an innovative archeological field investigation reclamation design. of potential cultural resource sites Reclamation proceeds concurrently as part of an effort to identify and with mining. At the Betze-Post Mine, We believe that good citizenship protect them. In Peru, environmental in Nevada, Environmental Engineer is more than a matter of corporate staff at Pierina have located and Kevin Kinsella inspects the growth altruism. In a global environment protected cultural artifacts, including of native plants seeded on reclaimed where companies’ reputations ceremonial offering pots dating back land that has been recontoured precede them, opening doors for to 300 A.D. to blend more naturally into the some that remain closed to surrounding landscape. Environmental Awards others, good citizenship is good Both Barrick and Homestake have business as well. strong environmental records, CONTENTS

Management’s Discussion and Analysis...... 25 Supplemental Information...... 92

Management’s Responsibility...... 57 Corporate Governance Auditors’ Report...... 57 and Committees ...... 93

Financial Statements...... 58 Board of Directors and Officers...... 94 Notes to Financial Statements ...... 62 Shareholder Information ...... 96 Gold Mineral Reserves and Mineral Resources...... 88 Corporate Information ...... 98

North America South America Africa Australia O Operating Results and AnalysisofFinancial Management’s Discussion our futureperformance.our predictingforbasis only the serveas not should operations,assessingforbut our provideinvestorsreasonable basis a with followinginformation,tointendedare the togetherwith GAAP”), (“US principles Statesgenerallyaccepted accounting presentedaccordanceUnitedin with relatedstatementsarenotes,and which accompanyingconsolidatedfinancial presentedoperationsis below. The factorsresultsofthe to contributing Program.Sales Gold Premium revenueincreasingour our through improveand operatingcontribution; costsloweringtounit acquisitions; selectiveorganicthroughgrowthand increasingreservesand production objectives:Increasingachievetoour operatingfourWestrategiesuse strongsheet.balance a maintaining while equityreturn on and share per 1. Refer to pages 55 and 56 for an explanation of non-GAAP performance measures.performancenon-GAAP ofexplanation an for 56 and 55 pages Referto 1. A discussion and analysis of the ofanalysis and discussion A our earnings and cash flowcash and earnings our createmaximizing valueby objectivestoare financial ur totalcosts$162cashof at gold producedouncesof6.1 million we2001,31, ForDecember yearended the OVERVIEW share)2000.for ($1.76versus$940million 2001 for per share)flowswereper $721($1.35 million share)2000.($2.22per Operatingcashin $1,189oflosscompared million a to ($0.18share),wasmillion $96incomeper assets,provisionnetmining forand 2000.Afterin merger-related charges share),beforeassetsprovision mining for per ($0.32 share)million compared$168 to Homestake,was$245 ($0.46million per severalinitiated againstyearsago litigation receivedadverse a judgement in an charge($59respectoftakenmillion) in eae costs related income,merger-beforeNet one-time newestTanzania.our Bulyanhulumine,in at production initial from as well as Creek, EskayGoldstrikefromand contributions strongoperationsand Yilgarn the from and MountainRound Pierina, costsat recordfromrecord and productionlow 2000.Wein benefitedounce per $155 at compared5.95togold ouncesof million total2001– the toouncecosts $167 ofper cash ouncesat million 2.4contributing Company(“Homestake”) mines recentlyacquiredthe Homestake Mining (1) ($117 million) and a litigation a and million) ($117 (1) per ounce – with – ounce per

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 25 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 26 MD+A continued below reflects such restatement.reflectsbelowsuch informationreferredsheetbalance and to operatingproduction, All combined. alwaystwocompanieshad the been if as c earnings, periods’ prior all showingGAAP, US statementspreparedhavebeen under financial year2001 full and quarter result,fourtha regulatory As authorities. securities with filing forshareholders and communicationforwith GAAP US under statementspreparedhavefinancial been Followingmerger,the consolidated pooling-of-interestspurposes.GAAP US for a acceptedas accountingand principles, generallyCanadian purchaseunder a as billion. $2.3 valueof totalsharesacquiretoHomestake a at approximatelyWemillion issued 140 industry’sthe strongest sheet.balance with producerand costsmajor anycashof lowest the producers, among gold with world’sthe oflargest one expectedbe to Companyis Our 2001.14, December on States,AustraliaUnited and Chile,Canada, the in operatingcompanymines with mining Homestake,gold international an The merger has been accountedbeen for mergerhas The Wemergerwith completedthe ash flow and financial positions financial and flow ash expenditures. operatingreducedcapitaland as welldevelopment, as in greater speed on emphasis an with district, mining Lama/Veladerounified a as properties Pascua-assessingsynergiesthe is at examiningdevelopmentwith opportunities, thirdintegrationnext.A team,tasked yearand this opportunities additional implement tolooks management mine while operatingplans, mine exercise2002this the reflectedarein in identified opportunities the of Some company’scontinents.four on properties combined the at opportunities savings costexpandand toproductionpotential comprehensivea as operations,team,undertookfocusedon secondintegration2004.A 2003and in costsavings anticipate further we and taxes,in exploration$20million in and million administration,$13 in million $27 2002,comprisedofin million $60 merger-relatedannual at costsavings IntegrationTeam estimatedthe has The Financial and Administrativeand Financial The sessment of the sessmentof premium of $84 on the 63 percentof63 the on $84 ofpremium a and 2000 realizedin $360ofprice Program.Salescompares ThisGold a to Premiumdeliveredproductionour into percent61of the $271on ofprice averageoverpremiumthe ouncespot price.For year,the $70realizedwea per average the realizedin percent, decline 5 ounce,or per offset$17 partially a by sales, percentgold increase8 in an from revenuehigher resultedThe2001. until sold not but 2000ouncesproduced ofin represents2001impact in productionthe than sales 154,000-ouncegold higher 2000.Theouncesin million 5.8of sales $1,936comparedgold with on million ounces,million 6.3 of sales gold on Revenuereached$1,9892001for million SALESGOLD 1. $365 per ounce on 50% of production and assumed spot gold price of $275 per ounce on 50% of production.of 50% on ounce per $275 of price gold spot assumed and productionof 50% on ounce per $365 1. mriain79 8 Amortization Royalties ounces – production Gold Cash operating costs per ounce operatingcostsper Cash ypoutceis(11) 143 $ By-productcredits costs mining Direct ounce costsProductionper basis) GAAP (US elmto 5 179 $ 1 expendituresCapital ounce per marginCash Totalounce costsproductionper Reclamation taxes Production Totalounce per costs cash ounce per sales Gold Mineral reservesMineral (deferredApplied stripping)14 Global – Results – Global (millions of ounces)of (millions (millions) (thousands) 710 $ 239 $ 334 $ 5,950 our forwardour contracts.sales realizedpricesachievablethe under on resultingimpact a with 2001,$271 in of 22-year-lowa mid-1990sto the average in ounce per $400 nearlyfrom declined haveprices,which gold lowertospot due averageour realizedin is price decline revenue.$289in additional million The year,the forprice spot generatingan averagethe than higher ounce,$46 averagerealizedweper $317an of price Overall,2001. in ounce$277of priceper averagean wereat sold– production Homestake’sprincipally – ouncessold year.the during the ofbalance The Programdeliveredproductionthe into 2000 79.3 146 155 155 $ 247 $ 158 $ 317 $ 586 $ 6,124 2001 82.3 162 155 (10) 76 9 1 6 7 153 $ 254 $ 175 $ 320 $ 351 $ 2002E 5,684 167 161 (15) 83 4 6 1 - - (1)

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 27 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 28 MD+A continued 3% by Continent -2001 Contribution to Reserves by Continent -2001 Contribution to Production South America North America Other Properties South America North America 15% 15% 15% 37% 14% 12% 55% Australia Africa Australia Africa 34% into the Programforward. the intogoing productionofcent per 50 deliverexpectto Program,Sales weGold Premium the into productioncombined our ofcent per 61 Homestake,mergerwith the delivered we resultof a as 2001,schedule.Whereas in deliveryreserves,our ofadjust will we cent per 22ounces, or million 18 roughly Programthe at ouncesin of number haveretainedcurrentlywethe While Program.Sales Gold Premium our guides that approach the reassessedhavewe Company’soverallstrength, financial environment,the pricecurrent and the term. longer the rangeoverounce$330-$340 per the in be wouldpricerealized gold our that anticipatewouldwe gold), ($290spot rateslevelscurrentlease at remain prices,interestgold ratesIf and prices.prevailinggold at soldspot be to expected2002is productionofbalance averageounce.The$365per ofprice committedan 2002is at in production dates.deliverypercentplanned Fiftyof scheduled the at ounce per $345of averagean yearspriceat next15 over the provenprobableofreserves, and deliverable representsThis approximately percent22 2001.31,December ouncesat million 18.2 ProgramSales totaledGold Premium deferredcontractsour spot in under As a result of the Homestake the resultmerger,of a As committedproductionfuture gold The our bottomline.our straighttogo pricesstrengthen, should predictability,gold if that, benefits plus securityand us gives approachsales forwardlow-costnew our production, capitalexpenditures.our with Combined year,requirementsthe for including covertoflowcash cash sufficient ensuretoprice floor minimum a setto is forwardgoing today’sto goal Our needs. Programour adjustnow canwe us, behind capitalprojectsother Goldstrikeand GoldstrikeProperty.The – industry gold the historyof the developmentprojectsin largestthe of one time the wasat what costproducer,higher on embarking program1987,sales in smaller,werewea forwardestablishedweour when Second, centralfromborrowingbybanks. gold lowerrisk pricesand higher in lock to environmentFirst,allowedthe producers twoforreasons.years ago 14 hedging program.began hedging Barrick our of strategicthe goals in shift parallelsa With the initial developmentof initial the With scheduledelivery our in shift This I F by GeographicArea Review ofOperations North America recoveryratesstart-upat during lowerlowerGoldstrikegradesand and at powercostshigher time, same the Atton. processingadministrativeand costs per mining, unit operation,including controltheir areasofacrosstheir all under costsreducinghavefocused on mines our ofprices,all gold weakness continuedin the 2000.forounceWith per $155 yearwerecompared$162,tothe for year.totalcostsbasis,cashounce per a On prior the for million $950compared with lowerprocessed grades.ore results,powercostsdespitehigher and contributedGoldstrikesolidPropertyagain mine’sthe resultsbesthistory.in The Columbia)second-produced(British its reportedrecord results,EskayCreek while (Nevada)2000.MountainRound in ounce costsper $157cashof at gold ouncesof comparedounce3,424,853to $179per averagean costcashofat production, America North 55 percent of the Company’spercentthe 55of total produced3,348,013gold, ouncesof operationsAmerican North our 2001, n reclamation, of $1,080 million, $1,080ofreclamation, totaloperatingcosts, including reportedweyear2001, the or America South autoclaveounce,facilities.per $193At the in mill ballnew a ofcompletion processthe the facilitiesat with rates,offsetthroughput partially higher by processedmarginallylowerrecoveryand gradespercentanticipated22in reduction an tolowerwasproduction largelydue Property’srecord Theproduction.2000 percentdecrease8 compared the to an 2001, in 2,262,663gold ouncesof GoldstrikePropertyTheproduced (NEVADA) GOLDSTRIKEPROPERTY property or corporate transaction.or property pr possibilityadding of 2003,lowerexcludingin productionthe anticipatemarginally2004,welate until expectedcontributeproductiontotonot severaland minesprojects newsix these F la de Agua and RubyHill Bousquet,McLaughlin, 2002 in close to scheduled five(Homestake),other the with 2001 wasin closedmines the closure.ofof One variousstagesin are which of six mines, year.seveninclude Properties Other Our prior comparedouncecoststhe to per Bulyanhuluhavere Africa alda). With the closureof the Withalda). sulted in higher cash higher in sulted oduction through a through oduction (El Indio,(El Australia Ontario Holt-McDermott, Hemlo,Ontario Columbia British EskayCreek, Nevada Mountain,Round Goldstrike,Nevada PROPERTIES AMERICAN NORTH Meikle Betze-Post

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 29 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 30 MD+A continued to Production –2001 AmericanContributionNorth to Reserves –2001 AmericanContributionNorth 34% 55% to be able to partially offset partially tothe able be to administrationcosts,Propertyexpects the processingmining, and lowertounit lead improvements,expectedareto which ounce.Through$205per productivityto percentcostscash6 expectedare riseto totalwhile 2001,percentlower than 7 gold, producetoouncesof2.1 million level.Forexpecting Propertyis 2002,the productionmillion-ounceconsistent 2 its maintainincreasingtothroughput movedreserveto2002, gradein powercosts.increaseouncein per $8 an lowergradesprocessedand the to largely year’sounce,prior due per $169the than totalcostswerecash2001forhigher Totalounce per costs cash mriain60 11 Amortization Royalties Gold production – ounces – production Gold Cash operating costs per ounce operatingcostsper Cash elmto 3 177 $ 1 expendituresCapital ounce per marginCash (11) Totalounce costsproductionper Reclamation 126 $ taxes Production By-productcredits costs mining Direct ounce costsProductionper basis) GAAP (US Gold sales per ounce per sales Gold Applied (deferredApplied stripping)30 Mineral reservesMineral North America – Results – America North 1. $365 per ounce on 50% of production and assumed spot gold price of $275 per ounce on 50% of production.of 50% on ounce per $275 of price gold spot assumed and productionof 50% on ounce per $365 1. The Goldstrike Property has essentiallyGoldstrikePropertyThehas (millions of ounces)of (millions (millions) (thousands) 296 $ 220 $ 334 $ 3,425 over the nextseveraloverthe years. anticipatepowerwecostsdecrease to subsiding, powerStates.crisis the With Westernthe Unitedin began powercrisis the sinceounce per $13 or $27million Overall,powercosts haveincreased 2002.in ounce per $5 or million, $10 twototalingyearslast – the thirdin powercostthe increasea – budgeting gradesprocessed.also Propertyis The orepercentin reductionanticipated15 of high-grade ore in the 7th West7th Laybackthe high-gradein oreof previousyear,the lower than mining as year,the for gold ofounces percent6 Betze-PostproducedThe1,549,975 Mine BETZE-POSTMINE 2000 32.0 157 145 162 $ 317 $ 289 $ 138 $ 244 $ 3,348 2001 27.2 179 170 (10) 60 18 5 1 8 199 $ 320 $ 184 $ 136 $ 263 $ 2002E 3,223 184 176 (20) 74 (3) 5 1 7 - (1) to an increase in developmentfromincreaseorein an to due 2001,percent in 13 by surpassedplan trainingcosts.higher Tonsand ore mined low-grademoreMeikle,development in lowergradeofore mining planned to costsattributablehigher 2000, with in ounce ounce,per comparedper $147$117 to 2000.Totalouncesin costscashwere compared805,718ofproductiontoplan year,the for gold of than percenthigher 7 ouncesproduced712,688 Mine Meikle The MINE MEIKLE continues.pit the of easternportion the backfillingofcostsas haulage shorter with costs,offsetmining partially lowerbyunit percent20lowergrades processed, costsrelatehigher to and production costsounce.lower$220cashofThe per total2002at in gold ouncesof million 1.4 explorationprogrampit. the around active havean not does targets,Mine the high-gradeundergroundPropertyon focus year.the during productionto the With due 2000 ouncesin million 18 ouncesfrom reservesgold million decreased16.4to nexttwoyears.the Provenprobable and encounteredbe transitionaltooreoverof tons million 2 planned the percenton 80 lowerrecovery rates approximatelyof expectedexperiencetois Mine The thirdquarter.the processedin primarily tons)million transitional(1.5 oreof amount year,prior the significantthan a to due Recoveryrates percentwerelower2.4 2000.ounce,in compared$195 to Total2001.of costscashwereper $215 secondquarter wasthe completedin The Mine is expectedproducetois about Mine The and higher mining costs.mining higher and proctonspercent in increase18 of gradesorepercentprocessed, in 14 an costsdecreaserelatedofhigher a to the ounce,with $173per expectedare be to total700,000 ounces.Total costscash Banshee.at Meikle of north justresults, particularly favorablewith drilling havebegun we which of past,some the in drilled areasnot targetsdeep programin new identified exploration2001 Our potential.see still underground,wethe whereouncesto wayadding forpotentialreduceno the in reserves.Thesereserve reclassifications body,removedwe 945,000 ouncesfrom ore the areasofdifficultmore smaller the of some economicallytomine inability our becauseof exploration.addition, In in-mine and drilling infill ongoing reservesintoback brought through be will materialof amount this confidentarethat reservesfrom gold ofresources.to We reclassification745,000ofthe ounces resultedThismine.reserves in the at estimatetoused we assumptions the reasto experienceyearcausedus last natureestimates.mining their by areOur reservecalculations calculations,such carefullyweprepareounces. While other resourcesouncestoremoval the ofand year,the during reclassificationcertainof productionto2000, due in million 6.5 decreased3.9toouncesfrom million accessdevelopmentRodeoore.to expectedthan earlier the to and Griffin Production for 2002 is expected2002fortoProductionis Provenprobablereservesand essed sess

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 31 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 32 MD+A continued *Barrick’sshare. Hemlo* EskayCreek Mountain*Round Meikle Post Betze Holt-McDermott Mine Total Goldstrike 2002E 2002E 2002E 2002E 2002E 2002E 2002E 2000 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 2001 Year compared243,734to at gold ouncesof ounce,totalper $187costcashofa at 2001,percentaccountin 50 our to gold record373,475ofproduction ouncesof venturecontributedjoint MountainRound MOUNTAINROUND (NEVADA) Production (OOOsoz) 2,452 2,263 2,100 1,646 1,550 1,400 305 307 304 333 321 366 244 373 363 806 713 700 91 84 90 Totalcosts cash (US$/oz) 148 165 148 190 196 192 202 187 198 169 193 205 117 147 173 195 215 220 19 49 51 Totalproduction costs costs (US$/oz) 5 percent more gold than in 2000.Provenin than percentgold more 5 le run-of-mine the addition, In pad. leach the to as well as mill, gradesthe throughgold higher to recordThecosts wereand productiondue 2000.$202in ounceof cost per cashtotal 254 258 259 225 232 232 146 176 176 272 249 263 225 253 283 181 221 308 247 267 270 Capital spending Capital (US$ millions)(US$ ach pad contributedpad ach 276 251 158 196 161 129 80 90 29 10 15 6 7 6 5 6 8 6 5 3 7 Mineralreserves (000s oz)(000s 24,451 20,379 18,000 16,433 2,397 2,517 2,118 1,775 2,609 2,245 6,451 3,946 406 293 ------of 2002. of secondhalf the in begin toscheduled is potential dip down the Explorationof year.the during productionto ouncesdue million decreased1.8 to2.1from million Proven2001.probablereservesof and secondhalf the institutedin changes operatingthe yearunder full a from 2002,benefiting percentin 12 additional an processingrates expectedareincreaseto Eskay2001.Creek’s in and mined mining percentimprovementtons8 in an to led sequencing, constraints,mine impact which blending oreofrelaxingpurchases and underground,equipment newthe in yearhistory. Productivityimprovement Mine’sthe seven-yearin secondbest the body.ore the ofrichnesswas 2001 the to costscashattributableloware The gold. of ouncetotal$49costper cashofa at 2001 in silverouncesof million 15.5 and gold EskayproducedCreek320,784 ouncesof COLUMBIA)(BRITISH ESKAYCREEK 2000.in opportunities prospectiveidentified drilling space wide target,Hill whereGold the on followtoup explorationmillion program$2.5 planned a Mine’shas the Mine Theproduction. of half producesabout which pad, leach run-of-minelowerthe fromproduction to due costsprimarily arehigher and ounce.marginallylowerproductionThe per totalcosts$198cash accountofat our contributeto363,000 gold ouncesof year.the during wasproductionreplacedof portion small million 2.2 to million 2.6 probablereservesand decreasedfrom For 2002, the Mine is expectedFortois Mine 2002,the ounces, as only a only ounces,as new grinding mill. grinding new operatingcostthe of additional the and gradesmarginaldecreaseprocin 2002,offsettingoffirst quarter the a in wascompletedwhich mill grinding new recoveryratesthe fromthroughput and improvedtolowercostscash Thedue are ounce.total$192costper cashofa at gold expectedtotalto304,000is ofounces pit. Williams the in reservesexpansionof the from primarily account)proventoprobablereserves, and (450,000production our ouncesto 900,000beforeadded – ounces2001 in Hemlo’sto strongresults. Exploration contributedalso pit Williams the from Increased2001.production in ouncesas of number same producetoessentiallythe procoreofhigher-gradetons and fewertowerelower2000 costsdue in ounce.Theper total costs$190 cashofat account,our to 304,882 gold ouncesof ventureproducedjoint 2000,ounce. the In per totalcosts$196account,cash ofat produced307,514 our to gold ouncesof 2 In interest. percent 50 a ownwe which of pit, open Williams the undergroundand Williams mines and Bell David venturethe ofjoint a is Hemlo (ONTARIO)HEMLO 2001.of quarter fourth resultsthe from encouragingdrill on 2002followto up in extensiveexploration programbegin to set an has grades.silverMine Theand gold ounce,despitemarginallylowerper $51 silver,ouncesof totalcostscashofat million 16 and 366,000gold toouncesof Foraccount2002,our to production Forexpectedrise2002,tois production 001, Hemlo 001, essed essed essed

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 33 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 34 Veladero,Argentina Chile Pascua-Lama, Peru Pierina, PROPERTIES AMERICAN SOUTH O deposits are good. aredeposits prospectsdiscoveryforlarge gold of believeArgentina,wewhere and Chile in lesserextent, a to and programsPeru, in border.explorationhaveWesignificantalso Argentineanand straddlesChilean the Veladeroand Pascua-Lama which district, largestdevelopmentour project,the and records2001,costsin and productionfor propertyset which Mine,cost Pierina South America mriain207 - Amortization Royalties ounce per sales Gold Gold production – ounces – production Gold Cash operating costs per ounce operatingcostsper Cash ypoutceis(11) 76 $ By-productcredits costs mining Direct ounce costsProductionper basis) GAAP (US elmto 7 291 $ - expendituresCapital ounce per marginCash Totalounce costsproductionper Reclamation taxes Production Totalounce per costs cash Mineral reservesMineral (deferredApplied stripping)(22) South America – Results – America South 1. $365 per ounce on 50% of production and assumed spot gold price of $275 per ounce on 50% of production.of 50% on ounce per $275 of price gold spot assumed and productionof 50% on ounce per $365 1. cash flow generator,flowcash low- the second-largestour consistof operationsAmerican South ur (millions of ounces)of (millions (millions) (thousands) 334 $ 156 $ 257 $ 2000.2002explorationThe program will ouncescompared5.7to ouncesin million probablereserves4.7 stoodat million program.proven2001,year-endAt and probablereservesinfill-drilling an through 220,000proventoounceswere added and life-of-mineearlierfromestimates. 2001, In decreasetocontinuereagent costs – and administration,labor particularly costs – operatingounce.Unit per cost$43 cashof totala totaledproduction821,614ouncesat 2000,ounce.Pierina’sIn per $40 historyof Mine’slowestthe the costsin at 2001, 911,076ofproduction in gold ouncesof reportedrecordMine Pierina The (PERU)PROPERTY PIERINA 2000 26.4 822 43 43 $96 277 $ 235 $ $65 317 $ 2001 30.1 187 911 (12) (13) 40 40 8 - - $63 243 $ 268 $ $70 $320 2002E 180 820 (10) 11 77 77 17 - - - (1) targets identified in 2001. targetsin identified explorationon programfollowup will 2002twothe pastyearsover and the replaceproduction partially to able been has processingMine rate.the addition, In forwardproduction increasingthe by bring todesigned plan optimization the gradesoreis offsetting in decline the decrease.togradesetare Partially reserve than percent higher 50 running processedgrades,currentlyoreare which beyondas 2003and in decline tocontinue will Mine the at productionanticipate that costs.stripping Weapplied higher and procpercent23tonsincrease a in gradespercentproc22in reduction a costsreflectounce.higher The per $77of costtotalcash a 2002,at in gold ofounces loweringcosts.and life forward,productionmine the shortening bringing byproduction increasing annual of goal loweringadministrationa costs with cycles,increasingprocessing rates and loweringwasteplans,revising mine haulage consistsof plan optimization The2001. in began that plan optimization the finalize will Mine 2002,the in addition, In pit. the of end south the wallof final the toadjacent one as well as pit, the of end north the at targetssurfaceon locatedfollownear up Pierina expectsproduceto820,000Pierina essed essed, metallurgicalunderway,testis work purposes.reportingExtensiveCanadian ouncesfor million 3.9from8.4to million expandprovenprobablereserves and to50,000drilling metersdefinition of consisted2001overof in Activities way2001/2002itsthrough season. field Veladerothe intoplan. mine reservesNorte Filo incorporationour of the as environmentalwell as work, administrationbackgroundcostsand infrastructure,of sharing the include costsynergiessavings.Immediate operatingways,capitaland ofterms in varietya of Veladeroin and benefit will Pascua-Lama both that suggestswork Homestake.mergerwith the byEarly possible made developmentopportunities evaluatingCompanyTheunified is continues.permitting, as well as plan, developmentthe on workoptimization prices;however,silver and gold low currentstart-up,constructionon based postponeto decision the Wemade project.capitalcostdevelopingofthe anticipatedlowertothe opportunities processstudiesindicatethe front,initial infrastructureto processand costs. On investigatingdirectedat is improvements Project Pascua-Lama the on Currentwork PROJECT(CHILE/ARGENTINA) PASCUA-LAMAVELADERO AND The VeladeroThe half currently is Project

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 35 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 36 MD+A continued Pierina to Production –2001 South AmericanContribution Mine to Reserves –2001 South AmericanContribution 34% 17% 2002E 2000 2001 Year the Chilean/Argentineanthe border. extendsalong consolidatedthat district the developmentofof first phase the VeladeroMine. Pierina be our could to similar veryvalley-fill leach, heap conventionalcircuitand crushing two-stagea operationwith mining pit open feasibilityThean envisionsstudy purposes.reportingCanadian casefor the advancedmoreis feasibility than work requirespurposes,reportingwhich US for provenintoprojectprobablereserves and the bringing ofview a underwaywith currentlyfeasibilityupdatedis study An environmentalthe forpermits.work as wellsite, as on leaching test forheap approximatelyfor body 825oreoftons ore the intotunneling includes which Production (OOOsoz) 822 911 820 Totalcosts cash (US$/oz) 43 40 77 Totalproduction costs costs (US$/oz) flow in the future.the in flow cash and earnings,production,growth in significant with providecouldus that cash-cost,districtproducing gold long-life low- a capabilitybe tothe has District Pascua-Lama/Veladeroenvironmentthe Statesdollars. costedareUnited which in Pascua-Lama, Veladeroboth foreconomicsproject and Argentineancurrencydevaluationthe to factorthe to in beginning nowarewe ounce.Beyondper $300of that,price gold ratesgeneratinga solid returnofat ofcapable be appearstoproject the Pascua-Lama,metallurgy easierthan lowercapitalcostthe and with that is In the right gold and silver pricesilver and gold right the In Veladeroattractionthe Theof Project 257 235 268 Capital spending Capital (US$ millions)(US$ 49 27 24 Mineralreserves (000s oz)(000s 5,655 4,748 - T on last year’slastgoal programon the with body.2002programThefollow up will orediscoverynew the a ofwith nickel, 600,000to2001contained tonnesof in resourceincreasedthe percent 50 by 2002.of secondhalf the Propertyin Tulawakafeasibilitythe forstudya testedyear,initially last completing while targetson drilling programfollowup will region’s2002conditions.The arid flat, the resultexplorationof a costas lowerexplorationthe an perspectiveis makesTanzaniathat attractive from factorsthe of One million. $9costof prtestingwith drill initial areasunderwent six 2001, In explorationdiscoveries.new areasmajor for Tanzania, bestnorthern ofthe of one VictoriaLakegoldfields the kilometersin program.oversquare6,000Wehold explorationstageearly active largeand our as well as 2001, April Bulyanhuluin at Africa *Operations began in April 2001. April in began *Operations Bulyanhulu Mine* At the Kabanga nickel property,nickelKabanga the At we opening of our firstAfricanmine our of opening newestour frontier, the with Africa)(Eastanzania represents omising results at a totala resultsat omising 2002E 2000 2001 Year Production (OOOsoz) 242 362 tonne-level. resourcemillion- the 1 takingof the to fourth quarter 2003date.completionquarter fourth scheduled originally the of ahead well 2003,in early equipped fully be and depth planned reachits should shaft The plan. day,per costsunit-miningwere and on ounces.million percent2012 to row,a thirdyearin the forrising Provenprobablereservesand increased ounce.per costs$197 totalcashof at produced241,575Mine gold ouncesof December.percentin 86 to rising The recoveryto yearled ratesthe of half year.secondImprovementsthe during the ofmostfor percent plan below7 percent,82exception, at running recoveryGold rates only providedthe areas.mostexpectationbetter in than, or at,working 2001, April start-upin on-time newestenjoyedan Our mine BULYANHULUPROPERTY - Mining ratesMining averaged 1,700almost tons Totalcosts cash (US$/oz) 197 173 - Totalproduction costs costs (US$/oz) 295 265 - Capital spending Capital (US$ millions)(US$ Kabanga Tulawaka Bulyanhulu PROPERTIES AFRICAN 203 153 56 Mineralreserves (000s oz)(000s 10,015 12,009 -

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 37 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 38 MD+A continued to Production –2001 African Contribution to Reserves –2001 African Contribution 15% 4% the east ore zone is expectedbe tois zoneore east the million. $5 about costof a 2002at of firsthalf the in implemented ratepercent89expectedofarebe to recoveryincreasethe designrate the to to plant flotation the tomodifications wereand Decembercompleted in rates.gravitythe tocircuitModifications improvingworkedgrouprecoveryon process the yearwhile the of secondhalf processedthe lowergradeduring ore levels.throughputmill The higher the to due costswereplan, lower than year,levelsthe for unit-processingwhile percentaboveforecast13 at throughput 1. $365 per ounce on 50% of production and assumed spot gold price of $275 per ounce on 50% of production.of 50% on ounce per $275 of price gold spot assumed and productionof 50% on ounce per $365 1. mriain- - Amortization Royalties ounce per sales Gold Gold production – ounces – production Gold Cash operating costs per ounce operatingcostsper Cash ypoutceis- - $ By-productcredits costs mining Direct ounce costsProductionper basis) GAAP (US elmto - - $ - expendituresCapital ounce per marginCash Totalounce costsproductionper Reclamation taxes Production Totalounce per costs cash Mineral reservesMineral (deferredApplied stripping)- Africa – Results – Africa Development of an incline to accessto incline an Developmentof Bulyanhulu’sprocess facilitiesoperated (millions of ounces)of (millions (millions) (thousands) $- 203 $ $- second half of the year.the of secondhalf recoveryand the rates,in particularly gradesexpectedfromhigher benefiting ounce,totalcosts$173cashper of at increase362,000togold ouncesof expandingreservethis base. developtobesthow focusedon teamis strike,along Bulyanhulu’s development and depth expandsat body ore the As body.oreextensions the ofdeep west and the continueson engineering Preliminary mid-2002.in developmentbegin to reserveplatformadditional fora provideshould and million, cost$7 ofa at 2002,of secondquarter the completedin 2000 10.0 Forexpected2002,tois production - - - 153 $ 120 $ 295 $ 214 $ 317 $ 2001 12.0 197 186 242 (28) 97 11 1 - - $56 147 $ 265 $ 182 $ 320 $ 2002E 173 165 362 (17) 91 1 8 - - - (1) development plan underway.developmentplan probableupdatedreservesand an and provenouncesof million 2.8 project,with Cowalthe is advancedmostwhich of explorationAustralia,of in propertiesthe portfolioa mergeradds the addition, In second-largestAustralia.producer in gold the ranknowas we – District Yilgarn the comprisingminesthree and mine, gold Australia’sPit, Super Kalgoorlie largest Australia W 1. $365 per ounce on 50% of production and assumed spot gold price of $275 per ounce on 50% of production.of 50% on ounce per $275 of price gold spot assumed and productionof 50% on ounce per $365 1. mriain42 5 Amortization Royalties ounce per sales Gold Gold production – ounces – production Gold elmto 5 139 $ - expendituresCapital (1) ounce per marginCash Totalounce costsproductionper Reclamation 190 $ taxes Production By-productcredits costs mining Direct ounce costsProductionper basis) GAAP (US Totalounce per costs cash ounce operatingcostsper Cash Mineral reservesMineral (deferredApplied stripping)1 Australia – ResultsAustralia– a 50 percentinterestthe 50 in a providingtwokey assets – Homestakethe mergerith (millions of ounces)of (millions (millions) (thousands) 334 $ $49 242 $ grades than the prior year,prior the gradesthan the enhancing percent42higher ouncesat million 1.6 to probablereserves increased28 percent lowercost.at productionProven higher and favorablea with the toexchange rateled – improvedand recovery ratescombined – undergroundgradesthe fromgold higher rate,mining pit open higher ounce.A year’sper lastpercent lower$166 than 16 increaseovertotalcosts2000,cash at percent 14 a gold, 288,360ofounces undergroundand operations,produced pit open both consistingofmines, District Yilgarnthreelargest the ofthe Plutonic, PLUTONIC(WESTERNAUSTRALIA) 2000 195 190 876 9.3 $46 131 $ 234 $ 181 $ 317 $ 2001 11.9 186 179 902 44 (2) 4 7 - - $40 142 $ 225 $ 169 $ 320 $ 2002E 178 170 939 43 4 8 1 - - - (1) Cowal Kalgoorlie District Yilgarn PROPERTIES AUSTRALIAN Lawlers Darlot Plutonic

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 39 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 40 MD+A continued *Barrick’sshare. Darlot Plutonic Kalgoorlie* Total District Yilgarn Lawlers Mine 2002E 2002E 2002E 2002E 2002E 2000 2001 2000 2001 2000 2001 2000 2001 2000 2001 Year undergroundoperations. expandinghigher-gradethe to due lowercostsand primarily productionare ounce.higher Theper costs$156 of 325,000totalcashat gold, ouncesof percentto13 additional increasean 2002.in programMine the around explorationsignificant a with continue will and high as Mine this ofpotential forward.going explorationWethe view profileproductionlow-cost the natureof Forexpected2002,tois production Production (OOOsoz) 394 385 367 482 517 572 101 104 108 127 125 139 254 288 325 Totalcosts cash (US$/oz) 189 203 205 200 173 160 214 191 178 192 173 154 198 166 156 Totalproduction costs costs (US$/oz) during the year.the during productionreplacingounces, than more increasedmillion 1.85minesmarginallyto Provenprobabletworeservesand the at favorablethe to exchangerates 2001. in lowered2000.mines Bothcostsin due percentcostslowerthan 11 and higher marginallyproductionounce, with per $191 produced103,915at Mine gold ouncesof ounce.LawlerspercentThe$173per to10 totalcostscashdeclined while production, yearprior to similar 2001, in gold of produced125,024Mine Darlot The ounces (WESTERNAUSTRALIA) DARLOTLAWLERSAND 237 252 266 247 219 200 262 243 222 236 219 199 246 211 195 Capital spending Capital (US$ millions)(US$ 19 10 34 27 30 10 12 11 12 11 19 15 5 4 7 Mineralreserves (000s oz)(000s 1,405 1,341 1,240 1,588 6,270 5,724 3,023 3,434 378 505 - - - - 2001 production, while the explorationthe while production,2001 probablereservesthan moreby declined reagentcosts.powerand Proven and maintenancehigher costshigher and processingHigher coststowere due historicalundergroundvoids. working lowerareasaroundproductivityin costsand fuel costshigher towerepit due previousyear.the costs than open Higher administrationprocessingand mining, unit underground,higher and and pit open the marginallylowerboth grades in higher.Theseresults were totalcostscashwhile were percent7 year,prior the in marginallylowerthan ounce.$203wasProductionper totalcostsaccount,cashofat our on 384,362percentounceswere or 50 768,725which of gold, ouncesof producedPit Super KalgoorlieThe (WESTERNAUSTRALIA) PIT SUPER – KALGOORLIE mines. the of both costscashat lower gradesunit and and processinghigher toratescost due are lowerand productionounce. higher The totalcosts$178cashofouncesat per expectsincreaseto108,000toproduction Lawlersounce,while per costs$154 of 139,000toproduction totalcashouncesat Forexpectsincreaseto2002,Darlot due to due (NEW SOUTH WALES)SOUTH (NEW COWALPROJECT scope and economics of the project.the ofeconomics scopeand the optimizetesttowork and drilling, program,further the including with year.per gold ofcontinue 2002,will weIn producetoapproximately 250,000 ounces processand designedfacilitieshavebeen probablereserves.plan mine currentThe proventoounceswere added and feasibilitystudy. million year-end,At2.8 the updatestudiesto engineering and technicalprogram,drilling a including began we2001, of latter part the In 2001. ofacquiredfirstquarterCowal the in Homestake,mergerwith had the which WeCowalacquiredthe throughproject operation in 2001.operationin higher-gradeundergroundthe of loweroverallclosing grades the aftergold marginallywith ouncecosts $205per of Company’sthe to totalaccount,cashat produce734,000367,000 gold, ouncesof probablereserves. largermineralresource provento and programtargetconversionwill the of resourcepercent.2002The60 by programincreasedmineral the Forto Mine 2002,expectthe we to Production –2001 Australian Contribution to Reserves –2001 Australian Contribution 15% 14%

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 41 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 42 O Other Properties costs of $212 per ounce in the prior year.prior the in ounce per costs$212 of compared827,524to totalcashouncesat averageounce,per total$198costcash of an at production,percent our of 12 gold, producedProperties721,771 ouncesof Falda).la de Other 2001,Agua In and RubyHill Indio,Bousquet,McLaughlin, (El 2002in close to scheduled five other (Homestake),2001 in closedthe with wasmines the of One Mine. Marigold 1. $365 per ounce on 50% of production and assumed spot gold price of $275 per ounce on 50% of production.of 50% on ounce per $275 of price gold spot assumed and productionof 50% on ounce per $365 1. Totalounce per costs cash mriain66 3 Amortization Royalties ounce per sales Gold Gold production – ounces – production Gold Cash operating costs per ounce operatingcostsper Cash rdcintxs1 (24) 233 $ taxes Production By-productcredits costs mining Direct ounce costsProductionper basis) GAAP (US elmto 18 122 $ expendituresCapital ounce per marginCash Totalounce costsproductionper Reclamation Mineral reservesMineral (deferredApplied stripping)(1) Other Properties – Results – Properties Other closure, as well as the small the as closure,well as variousstagesof in mines six include Properties ther (millions of ounces)of (millions (millions) (thousands) 334 $ $6 296 $ producing mine during the year.the during mine producing acquirea or properties other our at expandweproductionunless amount lowerthis bybe 2003should profilein reserves.productionresult,our a As of depletion the tooperations due year,per expectedarehavetoceased 30,000contributesabout ounces which Marigold, than other group this in mines the ofounce. 2002,year-endByall averagean per total$193costat cashof percenttotalofproduction,6 gold, of producetoProperties340,000 ounces 2000 212 208 827 1.6 ForOther forcalls plan 2002,the $2 119 $ 282 $ 214 $ 317 $ 2001 198 195 721 (18) 1.1 36 48 (1) 1 2 $8 127 $ 250 $ 206 $ 320 $ 2002E 193 187 340 (20) 14 43 2 4 1 - (1) Expenses and probablereservesreportingand US for converttointentVeladero our provento lowerexplorationThe expensereflects Tanzaniain percent spent 15 Australia. and with America, North percent23 in America, South in spent expectedbe tois percent32 which of totalmillion, $52to developmentexpenditures expectedare AustraliaChile/Argentina.and infrastructure:significant Tanzania,Peru, po areaswewhere major four explorationstageearly significantin Accordingly,fund. in engaged arewe venturesjoint todiscoveriesor buy to fewerarethereactive, and new explorationlonger companiesno are becausejunior past the in than explorationstageundertakeearlymore companiesmining major that demand world’sconditionseconomic changing explorationthe sequence.stagesin The differentprojectsat of geographicmix a explorationOur strategymaintainto is corporateofdiligence transactions.due incl which activities, onremainder the percent),(9 Australiapercent) (8 and percent),(17 TanzaniaAmerica North in spent balance the with America, Southdevelopmentcostsin came expensedexplorationbusiness and the of half 2000.About in $149million compared2001,to in million $103 developmentexpenditures were Totalexplorationbusiness and BUSINESSDEVELOPMENT EXPLORATIONAND For2002,explorationbusiness and business developmentbusiness ude evaluationand ude ssess expectedto bec propertyis the at million, $30 estimated an orderof the developmentin work reserves,intobrought is ongoing Homestakemerger. VeladeroAssuming the resultof a officesprojectsas and explorationregionalcombiningfrom (after-tax)s million $13 in 2002,of first half the purposesin amortization charge down overchargedowntime. amortization overallounceour per bring could which rates$75ounce,betweenand per of$50 amortization ounceexpected havetoper developmentnewprojectsare Our mines. explorationoperatingsuccessour at on rangedepending ounce per $85 $75the toin remain to amortization expectweterm,Properties. Longer Canadian the at amortization higher and reservesofreductionMeikle the at 2001, in Meikle at Rodeoconstructionof ofcompletion the Goldstrikewith at amortization higher toounce, due per $83 expectedincreasetois to amortization basis,ounce per a properties.certainOn at offsetamortization partially higher by percentouncessold, decrease10 in a todecrease$492to due million Forexpectedtois 2002, amortization Properties.Other at amortization offsetounce partially lowerbyper sales, gold percenthigher 7 to largepart in due is amortization increaseThe in 2000.in ounce$79 per $493or million, compared$762001,to in ounce per or million, totaled$501Amortization AMORTIZATION apitalized. ynergies and

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 43 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 44 MD+A continued of the interest2002.the in incurredof Companyall expectsexpenseto virtually the Pascua-Lama, at activities significant of Veladerosuspension at the and developmentoffocusterm near Rodeo, the Bulyanhuluofcompletionand the With Homestake’sofcredit. of line million $140 Decemberrepayment ratesin the and interestdeclining resultof a as 2001, than lowermillion $12 $55million, to decline to Pascua-Lama. Bulyanhulu,and Rodeoat activities constructioncapitalizeddevelopmenttoand million $42ofbalance the expensed,with was$25incurred,million amount the Of Homestake’scredit.of line million $140 and Bulyanhulufinancingproject million debentures,$200of the million $500 Company’sthe torelated2001, primarily in interestin Wecosts$67incurredmillion INTERESTEXPENSE closuresscheduled.are year,the offirst quarter followingwhich Homestakecertain offices the through costof the costs 2002Theforinclude associatedadministrative synergies. the integratingtwocompaniesand the firstyearof reflectingthe $55million, to million $31expectedare decline to year.For 2002,administration costs prior percentoverthe 15 or million, $11 administration2001,costs In increased ADMINISTRATION For2002,interest costsexpectedare this year and next.yearand this changes implement tomanagers mine its with worktointends management and production,increasedforcostand savings potential with properties our of each at improvementsforopportunities identified merger-relatedcosts,review the team contributedhigher toalsomandate merger.the of expandedthis While completion the and announcement the of datebetweenthe months five the during continentsfourkeyassets on eight our teamexpandedinvolvetoto visits site operationalreviewthe ofmandate the merger.the integrationthe unfolded,As quarter,fourth the ofcompletion upon in wasincomechargedtocompanies – twothe combiningassociated with costsother accounting,and legal, severanceincluding payments,advisory, Homestake– million)merger ($117 the costof the GAAP, US Under RELATEDAND MERGER COSTS consolidated financial statements).consolidatedfinancial notesto the of (see200117C noteof quarter fourth the in US$59ofmillion recorded judgement provisionthis fora Wemillion. wasC$88for appealed, 1997.havewe which judgement, The in TroilusHCI the toof mine sale gold proposedthe torelating litigation with connection in Homestake(“HCI”) Canada againstCorporationand Mining Inmet favorin ofruled Columbia British of SupremeCourt 200215,the January On LITIGATION Toimprove returns,havediversifiedwe strongratings.counterpartiescreditwith diversifiedofgroupratesfixeda at with interestearn we which on $5.5billion, of amount notional a assetworth sheet represents“AA-”a rated off-balance statement. incomefairvaluethe throughin changes recordingfairvalueand at sheetbalance the on instrumentsrecognizing the in Program,resultSales which Gold Premium improveour and returnsreducetoin risk interestdollar rates.US in decline the to and earnedpremiums option to related2001,primarily in wasmillion $33 derivativethesepositions on marketgain contracts.salestotal Thegold normal our contractsanyofaccounting on outside hedge elect Forto not chosewe2001, (LOSS)GAINS DERIVATIVENON-HEDGE increase.should income expected,interestthan earlier project a developmentofthe or acquisition an for utilized not is cash additional assuming flows2002,expectedcashfree in the with short-terminvestmentsand combined interestrates.cash $733in With million investmentsterm resultinglowerfrom short- and cash intereston earned income offsetloweroperationsthan morethe closurecostscertainassociated with intercompanytranslationof and debt foreigncurrencyforincurred Lowerlosses 2000.in million $14 from$32 million increasedincometoInterest other and OTHERINCOMEINTERESTAND Our Premium Gold Sales ProgramSales Gold Premium Our strategiesof number a ofWe usemake other interestother ratethrough hedging operatingcostsour and volatilityon revenues,silver,primarily reduceto twoyearsoperatingcosts;of by-product covertodollars approximately or one Australianand dollarsCanadian on hedges flows,foreigncashspecifically: currency our manage tohedges other of usemake fairvalueadjustedearnings.throughthe and sheetbalance recordedare the on expiredfrompremiumsoptions the and options date.calldeliverynewThe the InterestLeaseRate)(US$ Gold Rate– contracts,contangoaccrue which deferredrelatedincome,premium spot into exercised,discretion,including our at options callconvertto abilitythe havethe exercised.areprogramwesales if We forwardcomfortableour tobe adding wouldwe which pricesat writtenareat generaterevenue.additional calls The fairvalue.at sheetbalance ratecontracts recordedarethe on lease off-balancefloating are the sheet, contractsratessale leaseand normal are fixedforwardthe While earned.premium the maximizetobalance rates the on lease floating Programmaintaining while approximatelyon overalltwo-thirdsthe of sheet.balance the on statementincomeand the in reflectedfairvaluebeing in changes with managers,fund topof number a with corporateportfolioincomeof securities off-balanceProgramfixed-an intosheet overallpercentthe of 17 or billion $1 investingassetby this approximately Outside of the gold program,gold wethe of Outside to options call gold Third,sellwe borrowingcostsgold We havein locked

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 45 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 46 MD+A continued rateshigher.are taxwhereAustralia Peru Canada, and States,United the in earned being earnings of portion higher a rangewith percent30to25 the ratetotaxrise to expectounce,the wouldwe per $400 topriceswereriseto gold operations. If American related integratingNorth to our Homestakethe merger,with primarily synergiestaxof associated $20million of benefit the 2002,with percentin 10 ratetaxbelowremainWe toexpectthe ratelowerrealizedtax in jurisdictions.being earnings of portion higher a attributableto effectiverateprimarily the tax is in decline assetprovisions.percent22mining The 2000,beforemergercosts,and litigation percent,wascompared5 percent27toin Company’sThe effectiverate tax2001 for TAXESINCOME statement.income (loss)the derivativegain on Non-hedge fairvaluerecordedarethe in in changes and sheetbalance recognizedare the on derivativetheseofinstruments deposits.All interestcashin ratesour lock We alsoon rateapproximatelyin percent.of all 8 an nine-yearat termfull the for financing, Bulyanhuluproject$200million our ratesthe on havein lockedwe which amount of our operating cash flow.operatingcash our of amount affectpricescouldthe volatilitygold of 2002,the marketin spot the in sold be expectedtogold percentour of50 With million. flowsoperating$42bycash in decline yearcontributedthe to ounce)prior per comparedthe ($17 to averagesales gold realizedour pricesfor ounce)lowercostsper and cash($7 year.the during paid million $52 Higher merger-relatedas wellcharges ofas Rodeo,Bulyanhuluand constructionat $74ofcompletion the with million approximatelycapitalofworking in change the to largepart in due is 2001 in 2000.lowerflowcashThein $940 million compared2001,to $721in million operations.fromflowcash our However,reducepricescouldreduced gold acquisitions.potentialfor financing provideto projectsand internal our developingcontinueto necessary us for flowscash with providetous continue 2002will in operating activities our resourcesrequired.Weif anticipatethat accesshavesufficientwecapitalto processrenewing,the of in arewe which undrawnfacility,bankbillion $1 our and 2001,of end the $733at ofbalance million short-terminvestmentand largecash our strengths.with Combinedfinancial fundamental our of one is business operationsreinvestfromtoflow our in generatetoabilityWe believecash our CAPITALRESOURCES AND LIQUIDITY Wegeneratedof flowoperatingcash described in note 16. note in described fairvalueand at sheetbalance the derivativerecognizedareinstruments on average"AA-".ratingcreditof other All stronga counterpartiesofgroupwith diversified a with deposit on are funds approximatelyounce).Theseper $345 averageofpricefuturedelivery an deferredcontractsspot at in ounces million (present18.2 valueof$5.5billion valueofnotional a currentlyhas which off-balanceitem,this sheet manage prices.Wecarefullyand quantities pre-definedproduceweat that gold sellto representsimply theyagreements as sheet balance our on appear not do Sale and FASBPurchaseexemption138Normal for the deferredcontractsmeet sales that Counter(OTC) contracts.spot Our statements,Over-the-financial usewe consolidatedour to 16 note discussedin As risk. reducing while sales, gold our receiveweprice on the optimize to is programhedging our ofobjective The deferredcontractsSpot discussedbelow. reserves,is mineralgold which of each our and futureobligations reclamation deferredcontracts,salesspot unaccrued our areitemsoff sheet balance significant unconsolidatedaffiliates.or most The entitiespurpose special obligations, haveoff-balanceanydebt not sheet do Weactivities. financing sheetbalance off-in engage Companynot Thedoes OFF-BALANCEITEMS SHEET sales program.sales forwardour under commitmentsmeet reservesto means sufficientprovide a forwardprogram,mineralsales our Company’sthe ofsize the timesfour than mineralreserves.our actually moreAt largestoff-balanceOur is item sheet ReservesMineralGold conservative.is futureobligations reviewannual our ofour We believethat liability.ultimatereduceto this mines our improveto able operatingprocedures at years,fivepasthave over been wethe mines of number experiencea closing statements).financial gained Having consolidatedthe to(see 8 noteobligation off-balancean sheet is liabilityreclamation futureour of portion unaccruedThe FutureLiabilityReclamation price.gold any at margincalls no and leveraged– no options development of Meikle and Rodeo at Rodeo and Meikle developmentof costsundergroundmillion),($129 Betze-Postof: primarily deferredstripping comprisedAmerica, North in million $312 expenditures2000.Principal in included comparedmillion $710tomillion, $607 Capitalexpenditures totaled2001for CapitalExpenditures companypropertyacquisitions.and developmentand properties,mine new existingoperatingour capitalsustainingat investingprincipalforare activitiesOur INVESTINGACTIVITIES Our Premium Gold Sales ProgramSales has Gold Premium Our

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 47 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 48 MD+A continued undergroundand Plutonicoperations at expandto Australiaprimarily million), ($40 in million);($56 BulyanhuluMine the at processingdevelopmentand upgrades Tanzania,in Mines; underground Canadian the and Meikle developmentat undergroundand million) ($110 Post Betze-deferredcoststoat stripping due primarily America, North in million $195 years.expendituresprincipal14 The include lowestthe levelin be costs,would which deferredofstripping$126 million including $354tomillion, expected decline to million).($69interestPascua-Lama at capitalizeddevelopmentand workand engineering ($27and million)Pierina for expendituresweremillion, $96 capitalAmerica South in while equipment, undergroundmining newdevelopment and expenditurescoverto million were$46 Australia,In million).capital($153 Mine Bulyanhuluthe developmentat workand capitale Tanzania,In million).($23MinesCanadian undergroundthe and developmentat Goldstrikemillion),Property($90the Total $ 89 $ 68 $ 85 $ 60 $ 1,070 $ 60 $ 85 $ 68 $ 380 89 $ 25 40 $ 45 80 Total obligations closure and Reclamation Long-termdebt dollars)US of millions (in RepaymentSchedule For2002,capitalexpenditures are xpenditures included constructionxpendituresincluded primarily 0220 0420 2006+ 2005 2004 2003 2002 9$2 5$3 $ 690 $ 35 $ 45 $ 23 9 for the existhe for mines, Pascua-Lama.For exis environmentalVeladero at work and feasibilitytestand and work metallurgicalfor primarily America, South in million $63 capital;sustainingand payments and share issuances.sharepayments and dividend Bulyanhulufinancing, project the as developmentprojectnewsuch for borrowingsinclude activities financing Our ACTIVITIESFINANCING 2001. in short-terminvestmentstocashfrom therebyinvestmentsthesemovingearned, investmentsthe improveofinterestto the available-for-sale.Wetermextended the year.Theseinvestmentsas classifiedare one than lessdays and 90 greater ofthan corporatematuritiesand with securities investedhighly-rated,governmentin liquid, Short-terminvestments cashconsistof Short-termInvestments estimatedat longer-term sustaining capitalsustaininglonger-term ting production base is baseproduction ting $150 million annually.million $150 ting operatingting $ 1,372 $ $ Total 802 570 closure costs and pension and other post-other and pension closurecostsand and reclamationof consistprimarily debt. ratherequitythan utilizing futurefinancetransactionsto seek to us causecompanyand propertyacquisitionsor either in availablecashusefor of amount beyond.However,or the impact may it 2002operationsin our manage toability our impact renewed,not wouldnot it facilitycredit the werefive-yearIf term. further 2002a forof first half the during renewalagreementanticipatethe the of flows,strongcashfreewe and assetbase large,strongsheet,balancelow-cost our expires2002.on DecemberBasedwhich in undrawnfacility,the oftermextend the tolendersofgroup a with negotiating Wecurrentlypoints.are basis 22.5 plus drawninteresta has rateLibor which of billion $1 of maximum a foragreement 4.92000.percentin ratefromwasdown1.92001, percent in averagethe ratewhich in fluctuations, variable-ratetoprimarily subject bonds, debt, ofbalance the with debt the of between7.5 termpercent the for8 and interestat ratesfixedpercent87 is totaldebt, the Of yearsmillion. total$150 nextfive overrepaymentsthe due Debt interestan rate7.3 of 2001.percentin averagedfacilitywhich $200aremillion, Total$49million. this borrowingsunder ofBulyanhulu financing projectthe of drawdownoffsetfinal partially the by 2001,December in creditHomestakeof line million $140 repayingthe million, $97by debt long-termoperationsreduceto our Other long-term obligations, which obligations,long-term Other undrawn,Wehaveunsecuredan credit generatedcash bythe Weused as a significant exposureliquidity.significant our toa as operatingviewrisk not resultdo wea As costtargets.and production meeting establishedtrackrecordhavean that of minesportfolioof a with continentsfour large,Wehavediversifieda on assetbase RISKSLIQUIDITY proj with combination in balancecash the of portion a using period, 20062003toprojectstheseover the of consbegin prices,maywe gold current capitalcostat of our of excessgeneratereturnin tosufficiently a projectscurrently If cash. companiesusing acquireweunless 2002,investmentstermin balances rising short- result,and anticipatecashwea As 2002.flowssubstantialin cashfree in resultingcosts$126strippingofmillion, deferredincluding $354tomillion, decline expectedtois Capitalspending tax.after administrationmillion synergies$60 of and costscashoffsetfinancial the by marginallyhigher lowerand production with 2001,to similar be should activities 2005.throughactivities these on million $190 anticipatespending we amount this lives.productionOf mines’r the ofover each ounce averageper an $4 ofat accrued expectedbe tois liabilityreclamation the ofbalance The2001. of end the to $570totalr of million es an of $347million accrued 2000.Wein have million $401 to compared2001, in million $443 retirementincreasedbenefits,to For2002,providedcashoperatingby mining properties or properties mining underwayprove able eclamation liability eclamation ect financing. ect the developmentthe emaining tructing severaltructing timated

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 49 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 50 MD+A continued resulting designation. Forresultingdesignation. explanation an the derivativeand the of useintended the on derivativedepends a fairvalueof the requisitein Theaccountingchangesfor fairvalue.at instrumentsmeasurethose and sheetbalance the on liabilities or assetsrecognizederivativeseither all as requiresIt enterprisesactivities.to hedging forderivative and instruments standardsreportingfor accountingand Activities”(“SFAS establisheswhich 133”), Hedging Derivativeand Instruments SFASadopted 133,No.“Accounting for we2001, 1, January On risk. credit and rateforeigncurrencyrisk, exchange risk interestexposedcommodityrisk, toprice coursearebusiness,weofnormal the In MANAGEMENT RISK FINANCIAL wasavailable.financing suitable until project the defercorporate or debt resources,cashown our useto either havedecide toproject,wouldwe this for availablewere not financing project If Veladerofortermseconomic Argentina. in on availabilityfinancing projectthe of determinetoworkingcurrently Australia.are and Weavailable Chile for environment,is current financing project the in We$280expectthat million. totaldevelopmentcosta ofof out financing project in $200million obtained Bulyanhulu,ofwewhere financing the to projects,theseofsimilar cost eachfor developmentthe of portion a for financing third-partyseekwould we anticipatethat Australia.Argentina,Chile,and We in cons possible to closest those development,variousstagesofwith at Wehaveseveral projectsnewpotential truction for recordingfor transactions. responsibletransactionsthoseintofrom personnelresponsibleenteringoffor segregateand duties activities hedging verifyand monitor independently to separatea maintaincompliance function westatements.addition, financial In consolidatedour to 16B note in detailmore BoardDirectorsofdiscussedin the of as CommitteeFinanceoversight the the ofto establishedpracticessubject are which exchangeratescommodityprices. and interestrates,rates,lease gold currency affectedarein instrumentschanges by derivativevalueof sources.the in Changes readilyareavailableindependent from inputs pricing whereinstruments liquid contracts),contractsthese highly are contracts(ratherexchange-traded than statements.consolidatedfinancial our in 16 and refernotes2H toshould you2001 31, December outstandingat instruments derivativeof summary a instruments,and accountingtreatmentderivativeforour of demand for gold bullion, changes in changes bullion, gold for demand factors,many on worldwide including recentdepends yearssubstantiallyin and fluctuatedhas gold ofprice spot The market.spot the on soldremainder deferredcontracts,spot the with fixed-priceunder sold be will production gold annual approximatelyour of half Currently,gold. sellto able arewe which variableexpenses at and fixed marginabovethe on operationsdepend flowsfromcash and earnings Our RISK PRICE COMMODITY Our hedging activities employ wellemployactivities hedging Our extensivemakeweOTCof While use will fluctuate with commodity prices, as a commodityprices,as fluctuatewith will contractscommodityhedging our under assets.certainof sale the restrictionstorelated subject aretowe and annually; gold ouncesof million 1.5 reserves;leastproduce at mustwe two-thirdsprovenprobableour and of contractsexceedgold cannot under $1.75outstandingcommitmentsbillion; least at of consolidatedworth neta maintenanceof the including: us on covenantsvariousrestrictionsimposeand mark-to-marketposition. largeunfavorablea resultin price gold spot requirementsthe increasesin should marginto subject produced.Wenot are is gold the time the at gold ofprice spot the contractand the under price sale the of higher the at production our sell toyears,us 15 toenabling up of period overa time any at acceptabledateus to particular,delivery a selectto able arewe conditions.In keyand termsthe define counterparties,agreementswith which mastertradingprovisionsour of sheet.balancerecorded the not on contractsareconsequentlysales and contractsnormal accountedareas for statements.consolidatedfinancial These the to 16 note2001 disclosedarein contracts31,Decemberthe outstandingat and contracts keytheseprices.ofTheterms gold futurevolatilityagainstin hedge to and productionestablishfuturepricesforgold gold. ofcentral sales bank levelsofand production levelgold of conditions,conditions,politicaleconomic While the mark-to-marketthe While positions mastertradingagreementsThe the contractstoThe subject are deferredcontractsspot intoWe toenter bonds which bear lowerinterestbear which rates.bonds variable-rateprimarily is balance that while debt, the ofterm the forfixed is interestoutstanding,percentthe 87ofdebt current our balance.cashOf our on income interestinteresthigher rates,as well as US of function a forwardprimarily is price deferredprogramsales the because spot our forpremiums higher earn we interestrates.higher rateIn environments, lowerinterest rateshigher ratherthan adverselyaffectedareweby businesses, interestin rates.changes Contrarymostto increasedsensitivityresulttoin which deferredcontracts,spot our in implicit yield totalcontangoreturnswapsthe manage to haveenteredinterestinto rate swaps and variable-rateAdditionally,obligations. we borrowingcostsand on obligations debt ratefixedfairvalueofrelates in changesto interestOur rateexposure risk primarily INTERESTRATE RISK repaymentsdividends. and programs,capital spending existing debt operatingcovercosts,cash our sustaining operationsfromtoflowcash sufficient haveprice,expecttowouldwe gold than other changed else nothing analysis,if that ounce.on Based$200per to fell pricesgold spot if liquidity our on impact requirementoccur.to support credit a forlikelyleast is it environmentwhen commoditypricehigh a in marketposition largesthaveunfavorabletoour mark-to- increase.Consequently, likelymostarewe commodityincreasepricestotendswhen outstandingderivativetoinstruments producer,exposureliquidity our due We have run sensitivity tests on the sensitivitytestsWehaveon run

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 51 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 52 MD+A continued trading lines for new contracts.newfortrading lines our of length the as wellagreements, as financing newborrowingcost ofunder the contracts,impact couldhedging but or obligations existingdebt affectour ratingnot creditwould our in Changes assets.our ofgeographiclocation the and reserves;gold our ofquantity and quality program;hedging the affordedour by us to protectiongeneratethe flow;cashfree futuretohistoricalability and our debt; net of amount the including sheet,balance our strengthmarketcapitalization;of the “A”our in weight ratingcreditour are: support. requiresuch governmentalwhereorganizations explorationpaymentsand programs restorationsite royaltydismantlement, and primarily arecredit.Theseof obligations letterssuretyor bysupportedare bonds havewhich performanceobligations, coursebusiness,weofnormal the In RISK CREDIT twocosts.yearscashlocal of thereforeapproximatelyhavehedged we Australianand in dollarsdenominated Australiancostsproductionprimarily are StatesUnited dollars.in denominatedare equipment reagentsand fuel, diesel as Tanzanianlabor, than costsother such and Peruvian our ofmost while America, Company’sNorth in based is production the StatesofUnited half dollars.in Over denominated costis baseour ofmost and revenuesbecauseour risk significant a as currencyfluctuationsview not do we continents,operatefourwe on While EXCHANGERISK FOREIGNCURRENCY We believe that the factorsthe Webelievemostgiventhat minimal credit risk relatedlo risk credit minimal Historically,risk. credit havesufferedwe with instrumentsrequired financial for coursebusiness,collateralofnot is normal largethe commercialbanks.or In banksestablishedwellarebullion which averagean having“AA”,ratingcreditof acrossapproximately counterparties20 procedures.monitoring Wediversify and policiescreditformalthrough exposurerisk creditcounterpartiesto Webasis.attemptmitigateto ongoing an controlproceduresreviewedare which on establishedthroughinternal risk credit SFAStreat133,haveour toelectedwe accordanceprovisionsofIn the with DERIVATIVEINSTRUMENTS ACCOUNTINGFOR flows.cash and conditionresultsoperations,offinancial our impact could uncertaintiesthat the statementsand financial preparing our involvedare that in judgements the understandingin criticalmost be topolicies estimates.followingWethe consider resultsActualdiffercouldthosefrom year.revenuesthe expensesduring and ofreportedamounts the statements and financial the ofdate the at liabilities disclosuresassetsand contingentand of liabilities assetsand ofreported amounts affectthe that assumptionsestimates and requiresmaketowhich us GAAP, US conformitystatementsin financial with statements.Weprepareconsolidated our consolidatedfinancial our to 2 note in describedareaccountingpolicies Our ACCOUNTINGCRITICAL POLICIES We manage and controlcounterpartyand Wemanage sses. reportedrepresentaccuratemost the reservethat ensuretoestimates made is everyreasonableeffortAlthough time.to reserveestimatestime fromoccurmay result,revisionsmateriala existingto conditions.As varyingeconomic under productionreassessmentofviability the of continualevolvinghistoryproductionand developmentto,activity,limitedadditional factors,numerousnot but including, resultof a as substantiallyovertime change also may body oregiven a for dataThedata. economic and engineering availablegeophysical,geological,all of evaluation the in decisions significant reservescomplex,gold ofrequiringis method.productionof units the costsunder developmentmine and propertyacquisition capitalizedamortize weproduction, gold commencementof Upon identified. been provenafterprobablereserves and have capitalizepropertiescostson incurred property,forwe equipment, and plant accountingaccordancepolicy our In with EQUIPMENT PROPERTY,AND PLANT SFASunder accountingrules hedge 133. the ofeffectsapplication of on depending current-periodearnings or incomehensive o valuerecordedeither in fairin changes fairvaluewith their at sheetbalancerecorded our be wouldon accordancein SFASthat with they133 effect the with sales contractsnormal as designatetheseto not haveelected 10(b)SFASof 133.Alternatively, couldwe paragraphin criteria the compliancewith contracts,havedocumentedwe and salesdeferredcontractsnormal spot as The processThequantitiesestimating of ther compre-ther of the loss can be reasonablyestimated.be canloss the of amount statements,the financial and the ofdate the at incurred been has liability a impairedor been assethas an that probableis statementsit indicatesthat financial our issuanceofto available prior informationwhen contingencyloss a recordweestimatedfrom lossthat an Contingencies”.forSFAS requires 5 No. accordanceSFASwith “Accounting5,No. Weaccountin contingenciesfor CONTINGENCIES explorationdevelopmentprojects.or defer or delay projectsand spending capitalcurtailto causeus pricescould Additionally,equipment. commoditylow property,of impairment and the plant levelsproductionand/or our resultin lowercommodityaffectpricescould sharply of reserves.periods addition, In determinationof our impact alsocan and resultsprojectedfrommateriallyfinancial resultsdiffertofinancial actual causeour forward-lookingand statementscould preparingprojectionsin assumedthose property,of equipment. amount and plant carrying the of impairment resultin could revision,quantityand the to subsequent periods expensein amortization in causecorrespondingwould changes statements.financial the preparationthe ofestimatesin used other generallypreciselessthan estimatesthesemake body oreeachfor variancesavailabledataand in decisions assessmentssubjectivepossible,the Changes in gold and silver pricesfromsilver and gold in Changes reservein quantitiesChanges

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 53 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 54 MD+A continued factors including, but not limited to:limited not factorsbut including, varietya of on depending materially differfuturemay the in trendsresults and provecorrect.ultimately Actualbe to forwardthe statementswhether looking operationsand resultsour affectofthe materiallycould which, ofcombination a or which, of one anycontrol, and our outside areuncertainties,which ofmanyand risks operationsincorrect.involveOur be could assumptionsthesestatements on based forward-lookinginaccuratethe be toand provecouldassumptions these ofany statementsreasonable,arebasedare forwardthese which upon looking statements. phrasesforwardidentifyand to looking terms similar and “will” “may”,“intend”, “believe”,“could”,“estimate”, “expect”, words“anticipate”,Wethe haveused profitability,capitalresources.and liquidity futureoperations,position, margins, marketexpectationsconcerningour and strategy,businessrelate our alsoto goals items.Thesestatementsfinancial other flows,cashcosts, capitalexpenditures or production,things, other among torelating forwardincludes statements,looking analysismanagement’sThisand discussion FACTORSRISK contingencies.those with connectionstatementsin financial our on recordedbe to amount determinethe to judgement mattersour userequiresto us taxincomeenvironmental, and legal as Accountingsuch contingenciesfor • changes in the prices of commoditiespricesof the in changes • in connection with our operations;our with connection in consumewe which produceweor which Although we believe the assumptions believewethe Although authorities. provincialregulatorysecurities Canadian Commissionand Exchange and Securities US the with Formfiled is which InformationAnnual our greaterin in detail • continued explorationdevelopment continued or • or adversejudgements,rulings, • federal,provincialstateand • including mining, associated riskswith • foreignassociated riskswith • foreigndevelopments politicalin • interestin rates, changes lease gold • rating;credit our adversein changes • succ (1) toability our • such projects.such futuredevelopmentofcosts for amount the completedworkand of resultsthe becauseof or time the at commodityenvironmentpricethe of becausejustified be not projectsmayof excessreserves;anyof environmentalcostsremediationin matters,taxunexpected or including legal other or litigation settlementsin control;beyondour factorsother regulatorydelaysor or legal any and therein,changes regulations,anyand policies other environmental,safetyeconomic,and hazards; pressures,environmentalcave-insor unexpectedformations,or unusual investmentsoperations;and countries; markets; capitalthe ofcondition rates the and futurestrategic acquisitions; merger,complete and identify (2) and Homestakethe acquisitions,including Many of these factorstheseofMany describedare essfully integrate essfully Outlook highest free cash flows in our history.our flowsin cashfreehighest the prices,resultin wouldgold current on years,basedlowest 14 which, levelin the be costswould$126ofThismillion). $228(excludingmillion deferredstripping expecteddecreasetois to spending deferralCapitalPascua-Lama.the of and RodeoBulyanhulu ofcompletionand longer be capitalizinginter be longer Companythe as $55million, be merger.Intereste expenseis synergiesHomestakethe the from respectively,million $52 toexpensesdecline to$55 m expectsexplorationadministrationand Companythe addition, ounce.In $254per costsproductionexpectedare be to ounce,costs$167totalcashofper totalprices.With gold spot at balance the ounce,with $365per at sold be to expectedis 5.7 gold ouncesof million company.our valueto adds it if participate toflows,positionedbelievewell arewewe substantialcash and strongsheetbalance our with and continue will industry gold rationalizationthe ofconsolidationand Wewell.believe as operatingmines our fromprojects but new our from only profitableforassetbase growth, not existingour existwithin opportunities performance,believeweconsiderable futurepredictcannotwe While Forofproduction our of 2002,half benefiting from benefiting est, w est, xpected toxpected illion and illion will no will ith the ith virtually no net debt. net no virtually investment$733and of positionmillion short-termand cashassets,high-quality a industry,mining gold the in sheetbalance performancemeasures. non-GAAPthesetoincome net of reconciliationa Belowis GAAP. with performanceofpreparedaccordance in substitutemeasuresfora as or isolation in consideredbe not should informationand providetoadditional Theyfurnished are measurespresentedcompanies. other by comparablebe similar tounlikelytoare thereforeand prescribedGAAPbymeaning havestandardizedanynot measuresdo performanceThesenon-GAAPearnings. illustratecorefully our not do (“GAAP”) generallyaccepted accountingprinciples performancepreparedaccordance in with conventionalbelievethat measuresof year.prior compared2001the to in We our assess to and earnings corelevelour ofunderstandingthe of investors’assistinformation will this that believebecauseweitemsbefore unusual earningsmeasureof a Wehaveincluded MEASURESNON-GAAP We enter 2002 with the strongestthe We2002enterwith performance

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 55 BARRICK ANNUAL REPORT 2001 MANAGEMENT’S DISCUSSION AND ANALYSIS 56 MD+A continued should not be considered in isolation or as or isolation consideredin be not should informationprovideand toadditional generatetoflow. cashfurnished is dataThe operatingmines the illustrate ofability the fully not accordancedo GAAPin with measuresperformanceofprepared conventionalWeactivities.believethat investingother in and usefor flow Company’sthe generatetoability cash investorsinformationdeterminetothis use certainunderstandbecausewedatathat ouncecostscashWeper haveincluded but exclude amortization, reclamation costs, financing costs, and capital, development and explorationcosts.and development capital, and costs, financing costs,reclamation excludeamortization, but taxes,processing,productionroyaltiesadministration, mining, and as such costsoperating site mine include and Income Statementsof the in included amounts fromderivedare ounce per producers.costs gold Cash other presented bydata comparableto be not presentedmaydata voluntary, Standard the is the producers.and of gold Adoption American North leading includes and products gold and gold of suppliers of association worldwide a is Institute Gold “Standard”).The Standard(theCostProduction Institute Gold Theaccordance with in calculated is data Totalounce per costs cash Unusual items (net of tax effects):tax of (netitems Unusual items beforeunusual income Net Operating costs per financial statementsfinancial per costsOperating Ounces sold Ounces calculation ounce per for costsOperating costsclosure and Reclamation amounts)ounceexcept StatesUniteddollarsper of millions (in 1999 2000, 2001, Twelve31, December ended months year the for(loss) income Net StatesUniteddollars)of millions (in 1999 2000, 2001, Twelve31, December ended months Total cash costs per ounceTotalper costs cash Reconciliation of TotalReconciliationStatementsof Financial toOunce CostsPer Cash (Loss)Income Net GAAPto Items Before IncomeUnusual Net Reconciliationof Litigation relatedchargesand Merger Provision for mining assets mining Provisionfor (thousands) 245 $ 1,080 $ 1,020 $ $96 162 $ share repurchases.share or shareholders,dividends through either returntoto reinvestor tobusiness our in availableinvestingis cashThis activities. in usedoperationsfromcash lessflow cash as define we which flow”,cash“free GAAP. determinedunder operationsas fromflowoperatingcashprofit of or necessarilymeasuresindicative not are preparedaccordanceThe in GAAP. with substitutemeasuresforperformancea of 6,278 2001 2001 (107) We also make referencemakeWealso term the to (42) (60) - 6 259 $ 168 $ 5 936 $ 950 $ 0 891 $ 900 $ 244 (1,189)$ $ 5 152 $ 155 $ (1,357) ,9 5,861 5,794 001999 2000 001999 2000 (50)(45) (3) -- - (12) financial statementpresentation.financial overallevaluatingthe as well as Management,by made estimatessignificant and used accountingprinciples the as includes also statements.audit financial An disclosuresthe and in amounts the evidence supporting testbasis,a examining, on includes audit An ment. statementsmisstate-materialoffreearefinancial the reasonableobtainassuranceto audit whether an perform States.United and Thosestandardsplan we require that the and Canada both acceptedstandardsin auditing audits. our statementson financialbased these on expressresponsibilitytoopinion Our is an Management. statementsare financial the yearsthreein the shareholders’of in eachfor equitychanges and flow consolidatedstatementsthe income,of cashand 2000 and 200131, December at Corporationas Gold Barrick consolidatedofWesheetsbalancehavethe audited of BarrickGoldCorporation Auditors’ ReporttotheShareholders information.financial reliabilityits ofthe costreasonableeffectiveand a ensure,orderbasis,to on systemaccountinga controlsinternalmaintainsin of availabledevelopedCompanyinformation.and Thehas currently on based judgementsestimates bestand reflectManagement’sacceptedand accountingprinciples preparedaccordanceStatesin United generally with statementsconsolidatedThehavefinancial been Company.the ofBoardDirectors ofManagement and responsibilitythe the arepreparedof have and been by accompanyingThe statementsconsolidatedfinancial for FinancialStatements Management’s Responsibility We conducted our audits in accordancein generallyauditsWe with conductedour period ended December 31, 2001. These2001.31, December ended period the responsibility of the Company’sresponsibilitythe the of sessing February20028, Toronto,Canada CharteredAccountants generallyacceptedCanadian accountingwith principles. preparedaccordanceperiods, in same statements the for financial the Corporationon Gold shareholdersBarrick of sales.gold for nition revenueon recog-policy the Companychanged the 2000 during accountingderivativeforinstruments,and on policy itsCompany changed statements,the 2001 during generallyaccepted accountingprinciples. accordanceStatesin United2001 31, with December ended period the yearsthreein the of eachfor flowscash its operationsand resultsits of the and 2000 and 200131, December at Companyas the of position presentfairly,respects,financial material the all in February20028, Toronto,Canada OfficerFinancial Chief and VicePresidentSenior SOKALSKYC. JAMIE statements.consolidatedfinancial the on opinion examinationand their scopeof the outlines reportTheir PricewaterhouseCoopersby LLP, CharteredAccountants. On FebruaryOn 2002,reportedweseparately8, the to consolidatedfinancial the to 2 Note discussedin As statementsconsolidatedthesefinancial opinion, our In The consolidated financial statementsauditedconsolidatedThehavefinancial been

BARRICK ANNUAL REPORT 2001 MANAGEMENT’S RESPONSIBILITY / AUDITORS’ REPORT 57 BARRICK ANNUAL REPORT 2001 FINANCIAL STATEMENTS 58 Net income (loss)income Net Income (loss) before changes in accounting principlesaccounting(loss) in Incomebefore changes Net income (loss) before changes in accounting principles accounting in before(loss)changes income Net yearComprehensive(loss)the incomefor year(loss)the incomefor Net principles accounting in changes ofeffect Cumulative taxesIncome (loss) gains derivative Non-hedge charges unusual other and assets mining Provisionfor relatedcosts and Merger development business and Exploration Administration Amortization Operating expensesCostsand sales Gold basis)GAAP US data,Statesshare Uniteddollars,except of per millions (in 1999 and 2000 2001, 31, December yearsended the for CorporationGold Barrick Per share datasharePer Income (loss) before income taxes and other items other (loss)Incometaxesbeforeand income Interest on long-term debt long-termInterest on income other Interestand See accompanying notes to consolidated financial statements.consolidatedfinancial accompanyingtonotes See ConsolidatedIncomeStatementsof Diluted Basic Diluted Basic (note10) (note 11) (note (note12) (note7F) (note16E) (note18) (notes 2H(i) and 2I) and (notes2H(i) (note13) 0.18 $ $96 1,989 $ $84 1,946 1,080 2001 0.18 0.18 0.18 117 103 501 (25) 59 14 33 97 86 83 32 (1) 21)$0.46 $ (2.18) 244 $ $ (1,189) $ 2,057 $ 1,936 $ 126 276 $ (1,256) $ 116 244 (1,166) 135 359 (1,375) nt )(note1) (note1) ,2 15 1,627 ,9 1,719 3,294 22)0.45 (2.22) 22)0.46 (2.22) 21)0.45 (2.18) 00 1999 2000 0 (115) 209 4 139 543 936 149 493 950 2)- (23) 2)(29) (26) 581 75 446 14 5 4 (5) -5 ) See accompanying notes to consolidated financial statements.consolidatedfinancial accompanyingtonotes See Increase (decrease) in cash and equivalents and (decrease)Increasecash in Short-term investmentsShort-term Property,equipment and plant provided(usedinvestingin)byCashactivities Cash and equivalents at end of yearof end at equivalents and Cash yearof beginning at equivalents and Cash equivalents and cash Effectexchangeon rateofchanges activities (usedfinancing in)Cash Dividends stockCapital activities provided(usedfinancing in)byCash (usedinvestingin)Cashactivities Other providedoperatingactivities byCash basis)GAAPStates Uniteddollars,US of millions (in 1999 and 2000 2001, 31, December yearsended the for CorporationGold Barrick Restrictedcash Long-termdebt Purchase and sale of mining properties mining of sale and Purchase Consolidated Statements of Cash FlowConsolidatedCashStatements of Proceeds Repayments (note 11) (note (note15) (note12) 574 $ 721 $ 2001 (242) (153) (607) (183) (779) (152) 816 (93) (24) 55 (1) 5 7 - 86$630 $ $ 816 90$ 820 $ 940 $ nt )(note1) (note1) 00 1999 2000 70 (787) (710) 11 59 (141) 79 (680) (709) 17 (174) (187) 8 24 186 3 606 630 3 19 130 3 124 236 3)(112) (39) 9)(98) (94) 017 10 6 (4) (6) 636 212

BARRICK ANNUAL REPORT 2001 FINANCIAL STATEMENTS 59 BARRICK ANNUAL REPORT 2001 FINANCIAL STATEMENTS 60 ietrDirector D.BirchallWilliam C. Director Oliphant Randall Board the of behalf on Signed statements.consolidatedfinancial accompanyingtonotes See (note17) contingencies and Commitments Shareholders’equity Assets (in millions of United States dollars, US GAAP basis)GAAPStates Uniteddollars,US of millions (in 2000 and 2001 31, December at as CorporationGold Barrick Liabilities ConsolidatedSheets Balance Deficit stockCapital Cash and equivalents and Cash Currentassets Property,equipment and plant Accumulated other comprehensiveAccumulatedloss other taxesDeferredincome debt long-termof portion Current assets Other deferredexpensesInventoriesand Accounts payable and accrued liabilities accrued Accountsand payable Currentliabilities Accountsreceivable investmentsShort-term Other long-term obligations long-term Other Long-termdebt (note5) (note11) (note7) (note10) (note8) (note4) (note7) (note3) (note6) 5,202 $ 521 $ 5,202 $ 574 $ 3,912 3,192 4,062 2,010 1,014 2001 (763) (107) 276 223 244 443 793 530 159 58 9 ) 5,393 $ 587 $ 5,393 $ 816 $ (note1) 3,994 3,190 4,051 2,203 1,166 2000 (766) 233 285 311 401 901 590 (95) 59 3 6 )) sudfrcs 9 9 1 purchase on Issued cash for Issued 1999 31, DecemberBalance (in millions of United States dollars, US GAAP basis)GAAPStates Uniteddollars,US of millions (in 1999 and 2000 2001, 31, December yearsended the for CorporationGold Barrick e noe9 96 (93) 11 (93) 96 11 - 2001 31, DecemberBalance comprehensiveOther paid Dividends income Net cash for Issued 2000 31, DecemberBalance iied ad(4 (94) (1,189) (94) (1,189) comprehensiveOther paid Dividends loss Net iied ad(8 (98) 244 36 (98) 244 36 3 comprehensiveOther paid Dividends income Net cash for Issued 1998 31, DecemberBalance Consolidated Statements of Changes in Shareholders’in EquityConsolidatedChangesStatements of See accompanying notes to consolidated financial statements.consolidatedfinancial accompanyingtonotes See of mining propertymining of income (loss)income loss income (note18) (note18) (note18) (note12C) (millions) (note11) Shares 3 ,6 73$(2) 4$(8)$ $ 3,192 (123)$ 24 (763)$ $ 4,062 $ 536 3 ,2 1 3)-94,514 9 - (37) 517 4,025 534 3 ,5 76 9)-23,190 2 - (97) (766) 4,051 536 3 ,8 7 6)$-$6$4,300 $ 6 $ - $ (66) $ 371 $ 3,989 $ 531 1 17 117 Capital stock Accumulated other comprehensive Accumulated(loss)incomeother stock Capital Amount Retained earnings (deficit) foreigncurrency dutet ntuet Other instruments adjustments Cumulative Cumulative rnlto Derivative translation 2)2 1)(12) (10) 24 (67) (7) (26) (60) 9332 3 29 shareholders’ equity Total

BARRICK ANNUAL REPORT 2001 FINANCIAL STATEMENTS 61 BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 62 Financial Statements Notes toConsolidated dollars,respectively. Australianand Canadianare References A$ and C$ to basis.GAAP indicated,dollars,otherwiseUS unless StatesUnitedof Tabularmillions in amounts dollar NATURECOMPANYTHE OF 1 B arrick Gold CorporationGold arrick Barrick and Homestakeand (seeBarrick12A).note presentationconformtothe ofmade have been alwaysreclassificationsCertaincombined.had been with statementsretroactivegivemerger, effectthe to pooling-of-interests.a consolidatedThefinancial (“Homestake”).mergerwasaccountedThe as for HomestakeCompanymergedwith Mining Barrick of control.its beyondare them ofrisks,manythese manage toseeks Companythe varyinglevelstaxation.Whileof and risk currencyexchangein rates, fluctuationsto political operatesinternationally, accordingly,and exposedis ratesexplorationand expenditures. CompanyThe operatingcosts,gold, interestofmarketprice the by profitabilityaffectedCompanyand flowis the cashof levels.productionfacilitiesitsAlso, maintainthe to technology.facilitiesand Companysuch Therelies on specializedofArgentina.They userequire and the Chile States,United Australia,the Canada,Tanzania, Peru, in processing.conductedareprincipallyTheseactivities exploration,including and development,activities mining relatedand gold ofproduction the in engaged is “Company”)Corporationthe (“Barrick”Gold or Barrick On December 14, 2001, a wholly-ownedsubsidiary a 2001,14, December On all periods presented as if Barrick and Homestakeand Barrick presentedif periods as all 2 SIGNIFICANT ACCOUNTING SIGNIFICANT POLICIES 2 in the balance sheets and statementsincome.ofand sheetsbalance the in captionsrespectivemajor the ofinterest each under an has it unincorporatedventureswhich joint in of assets,ofsharerevenuesliabilities, expenses and Companyindustries.Thepresentsproportionate its accordanceextractivepracticein long-standingin with existingintereststhroughvotingsubsidiariesmajority controlsitsconsolidation.Barrick upon eliminated intercompanybalanceshavebeen transactionsand controls.material it All that subsidiariesowned more-than-50%- the and accountsBarrick ofthe statementsTheseconsolidated include financial consolidationof Basis B resultsActualdifferestimates.thesecouldfrom period. reportingrevenues the expensesduring and ofreportedamounts the statements and financial the ofdate the at liabilities assetsand contingent disclosuresand of liabilities assetsand of amounts Theseassumptions.estimatesreported affectand the estimatesrequiresmaketoprinciples management StatesUnited generallywith accepted accounting preparationconformitystatementsThe financialin of estimatesof Use A consolidateditssubsidiaries. and Companythe meanhereinCompany included the to Company.the forsignificant References StatesUnitedconsidered GAAPparticularly under policiesthosearebelowSummarizedauthorities. variousregulatorywith filed shareholderstoand StatesUnited dollars)(in mailed GAAP havebeen statementspreparedaccordance Canadianin with States.United the Consolidated in financial (“GAAP”) generallyacceptedwith accountingprinciples accordancein StatesUnitedstatementsand dollarsin consolidatedfinancial primary its prepares files and Company’sthe measureof operations.CompanyThe currencyofprincipal the Statesis UnitedThe dollar temporaryincome.recognizedaredeterminingnet in than other be tomarket valuejudged in declines shareholders’ofcomponent equity, except that comprehensiveaccumulatedseparateother income,a recordedinvestmentsare these in on losses and gains investmentstermavailable-for-sale. as Unrealized short-date.CompanysheetTheall balanceclassifies the fromtwelve months than lessof maturitiescurrent excessand in maturitiesmonths three oforiginal with corporategovernmentand ratedliquid securities and Short-terminvestmentshighly consistof principally Short-terminvestments F realizablenetvalue. costand averagelowerof the productionvaluedareat supplies operatingprocess,mine stockpilesin and in oreGold Inventories E equivalents.and cash respecttoconcentrationsexistwith risk credit of days.CompanyTheno 90 believes that than less maturitydatesof original with treasurybills, and depositsequivalentstermcomprisecash, and Cash equivalentsand Cash D income.interestother and stat the in included are shareholders’equity. Transaction losses and gains comprehensiveaccumulatedin other incomein Resultingincluded aretranslationadjustments averageexpensesat and ratesperiod. the for exchangerates;period-end revenues using and translatedfollows:liabilities been as assetsand statementsStatesnon-Unitedofhave subsidiaries financial currencythe functional was consideredthe currency.currencylocal the Forwhich in periods appropriateStateswasfunctional Unitedthe dollar 2002fromonwardsdetermine that to Barrick the StatesUnited dollar,currencythe tolocal the caused transactionsfromfinancing for also and production gold pricesforselling of denomination the in change circumstances,factseconomicand a in including currency.However, mergervariousfollowingthe functional currencywaslocalStatesthe the subsidiaries non-UnitedcertainforHomestakeconsidered that had StatesUnited dollar.the be determinedto Historically, Company’sthe of been all currencyoperationsofhas FollowingHomestake,mergerwith functional the the Translationforeignofcurrencies C ements of income under incomeof ements changes produced and sold. The application of the accountingthe ofapplication The sold. producedand is gold as mine oflifeevenly overactivities the mining thesecostof recognition the ofthe results in recoveredbe ouncestoand mine, of life over the movedtotalgold tobe totalto ratiotonsof the as ratiocalculatedstripping a using sold, producedand reserves,is operatinggold chargedtocosts as is recoverableprovenprobableouncesofgold and estimatedon based methodproduction of units the calculatedusing is which Amortization, equipment. costs”,property,capitalizedareunder and plant referredcommonlymines,“deferred as tostripping removalthe wastecomprisingopen-pit of at rock developmentcostsactivities on incurredMining Deferredcostsstripping(iii) asset.that oflifeestimatedremaining useful overthe amortizedassetcapitalizedare and an oflife productiveuseful extend capacitythe or improvementsincreasereplacementsmajor which and maintenanceexpenditures operations;chargedareto years.15 Repairsis and equipment mine of and years25 is equipment mill and buildings oflife estimatedusefulassets. maximum Thethe livesof estimateduseful the straight-lineon based method residualvalue,the of net using amortized, costand recordedare equipment at and plant Buildings, equipment and plant Buildings, (ii) use.intendedits for readysubstantiallycompletepropertyand is assetor progress.the in discontinuedwhen Capitalizationis areuseintended propertyits for prepareassetor the necessaryborrowings,toactivities specific while to restrictionrelateddevelopmentwithout activities, mineraland/orpropertiesassetsand of acquisition expendituresof basisthe forincurredthe on provenprobablereserves.in and gold ouncesof estimatedrecoverablethe on basedmines the livesof expectedoveroperatingthe methodproduction of units the calculatedusing is Amortizationincurred. reserves,developmentcosts expensedare as provenprobableidentifyingto and Prior identified. provenafterprobablereserves and havebeen developmentcostspropertiesMine capitalizedare on developmentcostsmine and Propertyacquisition (i) Property,equipment and plant G Financing costs,inter Financing including est, are capit are est, alized

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 63 BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 64 Notes continued equipment for impairment purposes.impairmentfor equipment Company’sevaluationthe ofthe property, and plant consequentlyflowsand cashaffectfuture netthose circumstancescould in which occurchangesmay that reasonablypossibleis uncertainties. It and risks to sellers.buyersbetweenand willing transactiona in properties mining itsfair valueof the risk-adjusteddeterminetoused be ratewould that factorrepresentsCompany’sthat the the ofview discounta flowsusing estimatedcashfuture net Fairamount. discountingthe determinedby valueis carrying the flowsthan lessarecashfuture net recordedareearnings,chargetoestimated the where correspondingfairvalue, a itsto with equipment and property,of amount carrying the plant in Reductions expendituresexpenditures.reclamation and relatedfactors); operatingcosts,and futurecapital prices,and currenttrendshistoricalprice and futurecommodityrealizationprice(considering provenprobablemineralreserves);and estimated recoverable(consideringgold ouncesofcurrent flowspreparedarecashestimatedfuture net using exist,mayestimated impairment an reasonsuspect to recoverable.be not Companymayhas the amount If circumstancescarrying in the changesindicate that eventsor when equipment and plant buildings, relatedmineraland propertiesits of amounts CompanyThereviews evaluatescarryingand the Propertyevaluations (v) Explorationexpendituresincurred. expensedare as (iv)Explorationexpenditures 2G(v).note in describedcriteria evaluatedaccordanceis occurredthe in and has with as ofpurpose the for Company’sthe ofproperties amount mining carrying time.ofextended period exceedsamortization costscapitalized an for if arisecould liability a that possible is it although sheet,balance the asseton an generally resultsin betweencoststiming amortization capitalized in and resultingdeferreddifferencescostsforstrippingand Estimates of future net cash flowssubject arecashEstimatesfuture net of the in Deferredcostsstrippingincluded are sessing whether any impairmentanysessingwhether other comprehensiveother income. accumulatedto obligations long-term other from SFASofcontracts adoption werereclassifiedon 133 hedging silver and gold torelating$35 ofmillion gains SFASofdeferredimplementation addition, 133.In the to prior options syntheticpurchasedput as accountingtreatmentcontracts,hedge for qualified deferredassociatedspot togetherwith which, options, call purchasedfairtogold valueofadjustment the comprehensiverecordedother income,representingin wasmillion) $4 oftax (netof $35 effectmillion of loss cumulative- a accountingtreatment;and hedge given historicallybeen not had derivativethat instruments representingpreviouslyfairvalueofunrecognized the earnings, wasmillion)period currentreflected $1 in oftax (netof million cumulative-effect$1 ofloss transitionprovisionsSFASofthe follows: as a 133 accordancein 2001 with 1, were January recordedat as derivativeliabilitiesofassets and amounts carrying the SFASofimplementation the totoadjustments133.The prior million werehistoriccost$44 recordedoftheir at that derivativeoptions callassets purchasedaregold SFASofimplementation the in to133. Included prior werealreadyrecordedthat fair valuemillion $45at of totalreturnfairvalueand swaps a options callwith gold writtenarederivativeliabilities instrumentin Included accountsliabilities.payableaccruedin and $57million ofderivative liabilitiesassets, instrumentand other in million derivative$15 assetsvalueofofinstrument Companyrecordedthe 2001,fair 1, the January at As adjustments Implementation (i) referred2001. “SFAShereafter1, toas January on 133”), FASBof amendment Statement(collectively133No. Activities,Hedging Certain and DerivativeInstruments AccountingSt FASBStatement StatementFinancial 133,ofNo.and EffectiveFASBofDate Statement133, No. Deferralthe of– Activities Hedging and DerivativeInstruments AccountingStandardsFinancial of137, No. Activities,Hedging and Instruments AccountingStandards133, No. CompanyStatementTheadoptedFinancial of Accountingderivativeforinstruments H andards No. 138,andardsNo. as amended by Statementby amended as AccountingDerivativefor AccountingCertainfor an amendment of amendment an Accountingfor loan also instruments outstanding during 2001. outstandingduring instruments SFASderivativeaccountingunder the of anyfor 133 hedge apply toelected not Companyhas The current-periodearnings.reportedarein instruments derivativenon-hedging fairvalueof the in Changes hedge.flowcash fairvalueor a for criteria the satisfies relationship hedging the whether on income,depending comprehensiveother or current-periodearnings either foreign-currencyrecordedarea as, hedge qualifies in designatedand is that effectiveand highly as, is that derivativea fairvalueof the in Changesearnings. period forecastedthe trans flowsofderivativecash exceed the variability in the the fairvalueof the in changes the which by amount ineffectivenesshedge Any(which represents the transaction.hedged the flowsvariabilityofcashof the comprehensiveaffectedareearnings byincome,until eff is hedge the extentthat the tohedge,flowcash a as, qualifies designatedand is that effectiveand highly as, is derivativethat a of fairvaluethe in Changesitem. designatedhedged a of flowscashfairvalues or flowsthe offsetcash in changes fairvaluesor effectivethe highly when derivativeis A commitments),recordedarecurrent-period earnings.in reflectlo that changes (including risk hedged the attributableareto that liability or assethedged the fairvalueof the in changes with fair-valuea as,along hedge, qualifies designatedand is that effectiveand highly as, is derivativethat a of fairvaluethe in instrument).Changes “non-hedging” purposes(aor “trading”non-hedging tradingfor or held is that instrument an foreign(5) operation;a or investmentnet in a of hedge a currency”hedge);(4) (acurrency“foreignfair-valuehedge flowcash or foreign-(aliability“casha assethedge);or flow” (3) recognizeda with connection in receivedpaid be toor arevariabilityflowscash(b) that ofthe transaction or (a)offorecasted(a hedge “faira value”a hedge); (2) unrecognizedcommitment(b) an firm or liability or recognized(a)ofa fairasset valueofhedge the a (1) either derivativecontract,designatesas the it derivativeCompanyentersa the into that date the On fairvalue.their at sheetbalance recognized the on accordanceIn SFASwith derivatives 133,all are Accountingderivativefor instruments (ii) and hedging activities hedging and action) is recordedcurrent-is action)in ective,recordedareother in sses or or sses gains on firm on gains cumulative amount of $23million. of amount cumulative a $0.04ofshareincluding per loss net basic increasein an as well as $25million, ofloss net increasein wasan 2000 in change practice.this industryof impact The accordance in long-standingform, with doré was in gold wherebypolicyrevenue time wasrecognizedthe at previousaccountingrepresentedthe from change a above.described as Thiscounterpartiestoand bullion gold ofdelivery of time revenuerecognizedthe is at RevenueaccordanceRecognition.101, In SAB with StaffimplementedAccounting(“SAB”) 101, Bulletin date.sheetbalanceadjusted revenuethrougheach at silver,and marketgold pricesforthe in changesare settlementdate,causedbythe recognitionof and accountsAdjustmentstoreceivable datebetweenthe concentrateprices.the contentmarket spot ofsilver at and estimatedgold the smelterson thirdpartytobased concentratethe torecognized transfertitle on legal of counterparties.to For concentrate,gold revenue is gold revenuerecognizedthe transfertois on title of market,spot the deferredcontractsin spot or under reasonablycollectibilityassured.Foris sold bullion gold determinableand or fixed is price arrangement;the the oftermsaccordance occurred the in has with arrangementexists;persuasivean deliveryevidence of followingmet:areconditionsrecognizedthe when by-productsand is gold of Revenuesale the from Revenuerecognition I asset.that of hedge flowcash a resultof a as income comprehensiveother deferredin havebeen that and/orgains considerationthe a oflo includes asset,however,an of impairment assessmentan for separaterecognizedliability.a is assetor as that The instrumentrelated anyfairvalueofhedging the (2) accountingand anticipatedeffectsanyhedge of (1) considerationexcludea ofand liability assetor the to applied been accountinghas hedge after as Suchliabilities. assets or thoseto apply acceptedthat accountingprinciples respectively,increasedobligation, according generallyto imp for assessed areitems hedged designatedas liabilities Assetsand as derivativesimpairment of on Impact (iii) EffectiveCompany2000,the 1, October airment or for the need to recognizeto an need the for or airment sessmentsmade are sessments sses sses

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 65 Notes continued

Revenue from the sale of by-products such as silver L Comprehensive income and copper is credited against operating costs. Revenue In addition to net income, comprehensive income from the sale of by-products was $110 million in 2001 includes other changes in equity during a period, such (2000 – $115 million, 1999 – $113 million). as foreign currency translation adjustments and the effective portion of changes in fair value of derivative J Income taxes instruments that qualify as cash flow hedges. The Company uses the liability method of accounting for income taxes whereby deferred income taxes are M Reclamation and closure costs 66 recognized for the tax consequences of temporary Estimated future reclamation and closure costs, relating differences by applying statutory tax rates applicable to active mines, are accrued and charged to expense to future years to differences between the financial as revenue is recognized over the expected operating statement carrying amounts and the tax bases of lives of the mines, using the units-of-production method certain assets and liabilities. The Company records based on the estimated recoverable ounces of gold a valuation allowance against any portion of those contained in proven and probable reserves. Changes deferred income tax assets it believes will, more likely in the estimate of future costs for inactive mines are than not, fail to be realized. Changes in deferred tax reflected in earnings in the period an estimate is revised. assets and liabilities include the impact of any tax rate Assumptions used to estimate closure costs are changes enacted during the year. Mining income taxes based on the work that is required under currently represent Canadian provincial taxes levied on defined applicable laws and regulations as well as the profits from mining operations. Provisions are made obligations under existing permits for the property for withholding taxes payable on anticipated repatriation in question or, where applicable, use government of unremitted earnings of the Company’s foreign mandated assumptions and methodologies. subsidiaries. No provision is made for unremitted N Stock-based compensation plan earnings which have been indefinitely reinvested. The Company has a stock-based compensation plan,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED TO NOTES K Earnings per common share which is described in note 11. The Company elected to Earnings or loss per share are presented for basic use the pro forma disclosure provisions of SFAS 123, and diluted net income (loss) and, if applicable, for Accounting for Stock-Based Compensation and has applied net income or (loss) before the cumulative effect of Accounting Principles Board Opinion No. 25 and related a change in accounting principle. Basic earnings Interpretations in accounting for its stock options. In per share is computed by dividing net income or loss accordance with the above provisions, no compensation (the numerator) by the weighted average number of cost has been recognized for the Company’s stock outstanding common shares (the denominator) for the options whose exercise price was equal to the market period. The computation of diluted earnings per share price on the date of grant. Compensation cost relating includes the same numerator, but the denominator is to the Company’s restricted stock unit plan is being increased to include the number of additional common recognized based on the fair value of the Company’s

BARRICK BARRICK ANNUAL REPORT 2001 shares that would have been outstanding if potentially stock over the period that the performance dilutive common shares had been issued (such as the measurement and vesting criteria are estimated to be common share equivalents for employee stock options). met. Any consideration paid by employees on exercise of stock options or purchase of stock is credited to capital stock. arise due to the initial application of these Statementstheseof application initial the to due arise assetsindefinite-livedthat intangible and goodwill for lo date.Impairment that statements at financial its assetsrecognizedintangible other in and goodwill all to applied entity’sbe toan offiscalyearand beginning the at applied requiredbe tois and 2001,15,December after effectiveStatementyearsfiscalis forbeginning The reviewedinsteadbe but earnings,impairment. tofor amortized be longer Statementno requiresgoodwill that 17,No. Opinion supersedesAPB AssetsIntangible Other and Goodwill pooling-of-interests.SFASa accountedas is for and 141, effective30,ofthe date2001,June to prior initiated later.or 2001, 1, HomestakeJuly mergerwith wasThe is acquisitionof date the which forpurchasemethod the accountedcombinationsbusinessusing for all to Statementapplies Thisalsocombination. business purchasea assetsacquiredrecognitionintangiblein of StatementestablishesseparateThisforalsocriteria permitted.longer pooling-of-interests no is method the of30, Use2001. June after initiated combinations business all forused accountingbe ofpurchase method SFASgoodwill. and requirescombinationsthe 141 that accountingbusinessforthe change Statementwill PurchasedEnterprises.PreacquisitionofContingencies Business Combinations,Business (SFAS16, No. Opinion supersedesAPB which 141), StatementBoard141,issuedNo. AccountingStandardsFinancial the 2001, June In Recentaccountingpronouncements P provided.arebenefits such time the at paidare Post-retirementinsurancelifebenefits and medical benefits. the foremployeesactive eligible become which in period expensedoverthe and accrued is retiredemployees.benefits estimated such costTheof insurancecertainlifeforprovidesbenefits and medical Companythe addition, regulations.applicableIn the by extentallowedthe to annually plans the fund to is plans pension benefit Company’sdefined forpolicy funding The method. actuarialcredit projected unit the using StatesUnitedcertain employees determined are for plans benefit costsPensionrelated defined to plans Employeebenefit O In June 2001, the FASBthe 2001,Statement June 142,issuedNo. In and SFASand 38, (SFASwhich 142), Intangible Assets.Intangible Business CombinationsBusiness Accountingfor This The sses addr RetirementAccountingAssetforObligations statements.financial any,if itsStatementimpact, on determinedthis the of yetStatement.not Companyprovisionsthe Thehas of amortization and non-amortization the toimmediately subject be 30,will assets2001acquiredJune after Statementintangibleeffective,becomesand goodwill this which at exceptiondate an the toUnder principle. accountingin change resultinga fromreportedas be test)(resultingtransitionalimpairment toarea from disposed of by sale be measured at the lower of book lowerof the measuredat be sale byofdisposed SFASbe toareassetsrequires long-livedthat 144 that Business. a of Segment a of EffectsDisposal ofthe Reporting – 30,No. Opinion APB amends discontinuedoperations)consequently(including and of.Disposed be toAssetsLong-lived for and AssetsLong-livedof Impairment (SFASsupersedesSFASwhich 144), 121, Assets Long-lived of Disposal on Impairment Accountingthe for statements. financial itsStatement on this of impact determinedthe yetencouraged.not applicationCompanyThe has earlier 200215,with June afteryears beginning statementsfiscaleffectiveforissuedfinancial is for 143 settlement.SFAS upon loss or gain a incurs or amount recordeditsfor obligation settlesthe either entity liability,the relatedsettlementofasset. the Upon an oflifeuseful overthe capitalizedamortized costthe is and accretedpresentperiod, is liabilityvalueitseachto relatedasset.the time,long-livedOverthe of amount carryingcapitalizescostentityincreasingthe by the recorded,initially an is liability the Whenincurred. is it which in period the assetretirementin an obligation forrequiresliabilityrecordto a fairentities valueof the Companies,Producing Gas and Oil byReporting Accountingand lessees.of SFASobligations SFAS amends 143 19, asset,long-livedexcept a operation certainoffor normal ac the retirthe associatedwith obligations legal tocosts.applies It associatedassetretirementthe assetsand long-lived retirementtangiblethe ofassociated with obligations In June 2001, the FASBthe 2001, StatementJune 143,issuedNo. In In October 2001, the FASBthe 2001,October Statement In 144,issuedNo. esses f esses quisition, construction,developmentand/orquisition, the ement of long-lived assets that resultfromassetslong-livedthat of ement SFAS 144 applies to all long-lived assetslong-livedSFAS all toapplies 144 inancial accounting and reporting forreporting accountingand inancial Reporting Results of OperationsofResults Reporting (SFASwhich 143), Accountingthe for Financial and

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 67 Notes continued

value or fair value less cost to sell. That requirement are expected to be fully processed by 2009 and 2016 eliminates APB 30’s requirement that discontinued respectively. The processing of ore in stockpiles operations be measured at net realizable value or that occurs in accordance with the life of mine processing entities include under “discontinued operations” in the plan that has been optimized based on the known financial statements amounts for operating losses that mineral reserves, current plant capacity and pit have not yet occurred. Additionally, SFAS 144 expands design. The timing of processing of ore in stockpiles the scope of discontinued operations to include all has not been significantly affected by the historic

68 components of an entity with operations that (1) can price of gold. be distinguished from the rest of the entity and (2) will be eliminated from the ongoing operations of the entity 4 PROPERTY, PLANT AND EQUIPMENT in a disposal transaction. SFAS 144 is effective for financial statements issued for fiscal years beginning after December 15, 2001, and, generally, its provisions 2001 2000 are to be applied prospectively. The Company has not Property acquisition and yet determined the impact of this Statement on its mine development costs $ 4,433 $ 4,402 financial statements. Buildings, plant and equipment 2,824 2,621 Deferred stripping costs 306 315 3 INVENTORIES AND 7,563 7,338 DEFERRED EXPENSES Accumulated amortization (3,651) (3,344) $ 3,912 $ 3,994

2001 2000 The deferred stripping costs relate primarily to the Gold in process and ore in stockpiles $ 134 $ 170 Betze-Post Mine at the Goldstrike Property where the Mine operating supplies 72 71 stripping ratio in 2001 was 104 tons to a recovered

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED TO NOTES Derivative instruments (note 16E) 17 - ounce of gold (2000 – 101 tons, 1999 – 93 tons). Purchased call options premium - 44 $ 223 $ 285 5 OTHER ASSETS

Gold in process and ore in stockpiles excludes $46 million (2000 – $38 million) of stockpiled ore 2001 2000 which is not expected to be processed in the following Assets held in trust $51 $56 12 months. This amount is included in other assets. Ore in stockpiles 46 38 The Goldstrike Property is the only operation that Taxes recoverable 36 56 has significant stockpiled ore. These stockpiles arose Derivative instruments (note 16E) 40 - from the optimization of the mining and processing Note receivable 17 19

BARRICK BARRICK ANNUAL REPORT 2001 plan for the Property. Stockpiles at the Property Restricted cash 12 - consist of two types of ore: ore that will require Deferred financing fees 11 17 autoclaving, and ore that will require roasting. The Prepaid pension assets 5 7 processing of roaster ore commenced on start-up of Other 58 40 the roaster facility in 2000, and both autoclave and $ 276 $ 233 roaster stockpiles are currently being processed and LONG-TERMDEBT 7 ACCOUNTSPAYABLE ACCRUEDAND 6 Current portion of reclamationof portion Current 7 Trade and payableaccounts annually, and mature on May 1, 2007.1, annually,May matureon and Litigation relatedcosts and Merger Current portion Current Cross-borderfacilitycredit instruments Derivative LIABILITIES A7 bear interest7 bear at Company,guaranteedaredebentures,the bywhich redeemable,ofnon-convertible debentures. The Company,the of subsidiary ownedmillion $500 issued wholly 1997,22,a April Inc., FinanceOn Gold Barrick Capital leases Capital Variable-ratebonds Bulyanhulu – financing Project 1 ⁄ 2 and closure obligations closure and miscellaneous accrued liabilities accrued miscellaneous % debentures % 1 ⁄ 2 % debentures% (note17C) 1 ⁄ 2 (note16E) % per annum, payableannum, semi- per % (note12A) (note8) 307 $ 793 $ 521 $ 500 $ 2001 2001 802 200 13 56 65 80 22 80 9 - 535 $ 901 $ 587 $ 500 $ 2000 2000 904 149 151 52 24 80 3 - - - until cancellation, redemption or maturity.cancellation,or redemptionuntil paymentsrequiredare4.9%).principal – No (2000 interestwas20011.9%31, rateDecember at short-term,tax-exempt rates.obligation averageThe variableon based bonds the paysintereston monthly CompanyThe million. (duetotal$802032) ofa for (due(due2029)$25million $382004),million and variable-rate,issued tax-exemptmillion $17 of bonds Companyhavethe Wholly-ownedofsubsidiaries Variable-ratebonds C was20017.3% 9.2%).– (2000 effective3.6%.The interestplus Libor rate for stepsaverageofto number approximatelya in rising increasespre-completion,and followingcompletion, 2.6% plus insuranceLibor risk premiums,politicalis of averageTheWorld Bank. interestand rate, inclusive governmentCanadian branchesbythe of equally risks Company.the to politicalfacilityforinsuredThis is non-recoursebecome will loan the point which date,at completion the eventuntil occurring, risk political a of caseexceptthe guaranteedloan, Companyin has the 2002.CompanyThe in expectsoccur tocompletion environmentaland tests.marketing,legal The satisfactionphysical,certainof operational,financial, the as agreement the ofterms the under defined is repaymentfollowingdateCompletioncompletion. firstthe as early as 200215,and December than year,eachlater of no 15 Decemberfirstdue the with and 15 June on installmentssemi-annualfallingdue consecutiveequal 14 consistofRepayment will Tanzania.in project undergroundmining gold Bulyanhuluthe operationof ongoing start-upand construction,development,the finance partially to banks,syndicationinternationalofprovided a by $200million, to up of recourseloan amortizing Companydrawdowncommencedlimitedthe a of the of subsidiary owned wholly 2000,a 8, May On Bulyanhulu– financing Project B

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 69 Notes continued

D Credit facilities The Company has estimated future site reclamation The Company has a credit and guarantee agreement and closure obligations, which it believes will meet (the “Credit Agreement”) with a group of international current regulatory requirements, to be $570 million, banks (the “Lenders”). The Credit Agreement provides $347 million of which has been accrued to December 31, for the Lenders to make available to the Company and 2001 (2000 – $341 million). A total of $80 million subsidiaries designated by it from time to time a credit of these accrued amounts is included in accounts facility in the maximum amount of $1 billion or the payable and accrued liabilities at December 31, 2001

70 equivalent amount in Canadian currency. The Credit (2000 – $52 million). Agreement, which is unsecured, matures December The Company expects to spend approximately 2002. The facility has an interest rate of Libor plus $80 million in 2002, $45 million in 2003, $40 million 0.15% when utilized, and an annual fee of 0.075%. in 2004 and $25 million in 2005 on these activities. As at December 31, 2001 and December 31, 2000, no Future changes, if any, in regulations and cost amounts were drawn under the Credit Agreement. estimates may be significant and will be recognized Homestake had a cross-border credit facility when applicable. providing a total borrowing availability of $430 million. The Comprehensive Environmental Response, The amount drawn under the facility of $149 million Compensation and Liability Act imposes heavy liabilities was repaid in 2001 and the credit facility cancelled on persons who discharge hazardous substances. upon the merger with Barrick. The United States Environmental Protection Agency publishes a National Priorities List (“NPL”) of known E Scheduled payments or threatened releases of such substances. Homestake’s Scheduled minimum repayments for each of the next former uranium millsite near Grants, New Mexico is five years are: 2002 – $9 million, 2003 – $23 million, listed on the NPL. 2004 – $45 million, 2005 – $35 million, 2006 – $38 million. 9 EMPLOYEE BENEFIT PLANS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED TO NOTES FInterest Interest of $67 million was incurred during the year A Defined benefit plans (2000 – $ 70 million, 1999 – $59 million). Of this The Company has pension plans covering certain amount, $42 million was capitalized to property, United States employees. Pension plans covering plant and equipment (2000 – $44 million, 1999 – salaried and other non-union employees provide $30 million). benefits based on the employee’s years of service and highest compensation for a period prior to 8 OTHER LONG-TERM OBLIGATIONS retirement. Pension plans covering union employees provide defined benefits based on each year of service. The Company also has other post-retirement 2001 2000 plans, which provide medical and life insurance

BARRICK BARRICK ANNUAL REPORT 2001 Reclamation and closure costs $ 267 $ 289 benefits for certain retired employees. Pension and other post-retirement The following table provides a reconciliation benefits (note 9) 89 63 of benefit obligations, plan assets and the funded Derivative instruments status of the plans: and deferred gains (note 16E) 60 22 Other 27 27 $ 443 $ 401 Amounts for pension and post-retirement benefits in the consolidated balance sheets consist of the following:the consolidatedpost-retirementofconsistsheetsbalance the and in pension forbenefitsAmounts Prepaid pension asset pension Prepaid terminations special and amendments Plan Interestcost cost Service year of beginning obligation Benefit obligations benefit in Change Accrued benefit liability – long-term – liability benefit Accrued post-retirementobligations and benefit pension Accrued asset transitionUnrecognized net year of end assets Fairplan of value paid Benefits year of end obligation Benefit Curtailments Accrued benefit liability – current – liability benefit Accrued paid Benefits (gains)losses Actuarial Plan assets in excess of (less than) (less excessof in assets Plan year of beginning assets Fairplan of value assets plan in Change Unrecognized prior service cost service Unrecognizedprior gains actuarial Unrecognizednet Companycontributions assets plan on returnActual projected benefit obligations projectedbenefit (53) $ $5 (53) $ 234 $ 279 $ (44) $ 255 $ 238 $ 2001 2001 (57) (24) (11) (24) 39 16 17 (1) (9) 4 1 2 - - Pension benefits Other post-retirementbenefits Other benefits Pension Pension benefits Other post-retirementbenefits Other benefits Pension 226 $ (21) $ $7 (21) $ 255 $ 238 $ 18 $ 249 $ 2000 2000 (27) (19) (19) (47) 11 16 24 (1) (3) (1) 3 4 9 1 $27 (32) $ $- (32) $ $- $27 (27) $ $- 2001 2001 (32) (2) (2) (1) (4) 2 2 ------28 $ (36) $ $- (36) $ $- 27 $ (27) $ - $ 2000 2000 (36) (2) (2) (2) (4) (5) 2 1 2 ------

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 71 BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 72 Notes continued Totalcost benefit net mining assets and other unusual charges.unusual other assetsand mining provisionsforin wasincluded Homestakeand mine the closureofrelated 2000the to in amount relatedcosts.mergerand comparative Thein included areTheseamounts Barrick. mergerwith the by controlHomestakeforofclauses employees, triggered change the under due entitlements pension additional for primarily are2001charges terminationin Special benefit costs include the followingcomponents:the costs include benefit thereafter.and 2006 rate7.5%of decreasingratability2001,for 5.0%toin carecosthealth trend a assumedCompany Thehas weightedfollows:averagewerethe as assumptions 31, actuarialDecember at As Service cost Service Expected return on assets on returnExpected Interestcost Net periodic benefit cost (credit)cost benefit periodic Net Amortization of: Amortization Additional charges (credits):chargesAdditional Expected return on plan assets plan on returnExpected rateDiscount Rate of compensation increasecompensation Rateof Settlement creditsSettlement gains Actuarial Prior service costs service Prior Curtailments chargestermination Special Net periodic pension and other post-retirementother and pension periodic Net $33 $4 2001 (21) 16 39 (1) (2) (2) (3) 1 8.50% 5.00% 6.75% 2001 1 1 $ 11 $ 3$5$3 001999 2000 Pension benefits Pension 2)(21) (21) 7 16 17 10 - - 10 1 - (1) 1 1 (1) 11 2 - - 2 -- .0 8.50% 8.50% .0 5.00% 5.00% .5 7.75% 7.25% 001999 2000 Pension benefits Other post-retirementbenefits Other benefits Pension Additional charges (credits):chargesAdditional Net periodic benefit cost benefit periodic Net Total net benefit cost (credit)Totalcost benefit net and 2000,and re 200131,December at million $56 and million $51 assets,toamountedother in included is which grantorThedeferred trust,plans.compensation other certain and plans nonqualified payablethese under benefits the insuranceforprovidetopolicies, funding corporate-ownedand funds lifemutual funds, grantormoneyestablishedconsistingofa trust, has Company.CompanyTheunfunded. are These plans coveringplan directorspension the ofnonqualified coveringemployeesa plan certain and pension supplemental nonqualified a to pertain Theseamounts respectively,$32million, and 2000. 31,December at $39million and 2001, 31, December at million $48 excessassetswerein both plan obligations of benefit accumulatedwith plans pension for obligation benefit accumulatedand obligation projectedThebenefit Interestcost Amortization of: Amortization Actuarial gains Actuarial Special termination chargestermination Special Prior service costs service Prior spectively. 6.75% 2001 (2) $ $2 2001 Other post-retirementbenefits Other (1) (2) (1) - .5 7.75% 7.25% 001999 2000 $1$1 2$2 $2 001999 2000 1 - (1) 1 (1) (1) 1 - - 1 -1 has been accrued in other long-term obligations.long-term other in accrued been has amount Thisgranted million. RSUs was$7 the valueof the 200131, December at share.BarrickAs a ofprice marketthen the valueequivalenttohave a grant, will ofdate thirdthe anniversaryofthe on out paid be will vestsand which grant.RSU,of Each time the at share common Barrick one to valueequal havea will unit eachwhereRSUs, of grantednumber is a participant a Plan, accordanceRSU In Plan”).the with (“RSU restrictedincentiveplan a placestockunit in put Companythe 2001,1999. In in million $11 and 2000 in million $11 2001, in million was$12 plans these to retirement.Company’sThe contributionsofshare interestaccumulatedwith until and accrued are yearthe forofficer’s bonus the of15%and salary officers.certainforplan, plan the toPursuant retirementunfunded an Companyhas the addition, In plans. employeecontributionbenefit defined in Company’sthe ofCertainoperations participate other plans contribution Defined B costs.interestperiodic netserviceand ofcomponents effecton no had and million $2by 2001 31, December accumulatedpost-retirementat obligation benefit ratedecreasedhaveincreasedwouldthe or carecosthealthtrend assumed the in change point percentageone reported. A amounts the effecton careminimal costhealthrate trenda assumed has Themines. the closureof planned the reflectto costswerecurtailment certainrecognized2001 during Termination2001. 1, and January ofbenefits as 65 yearsserviceexceededofand years combinedage of restrictedHomestakewhoseemployeesthe tomine at werecontributoryareand carebenefits Health costs.terminationresulting 2001in during mines The Company announced the closure of severalclosureofCompany the The announced 10 INCOME TAXES INCOME 10 statutoryratefollows:were38% ofas Company’sratefederaltaxincomediffer tothe from the varyingcausingratesitems taxation.Major of to subject severalis incomein itsjurisdictions, and tax industryCompanyspecializedoperates the a As in Increase (decrease)Increase (benefit)expense tax Income Total Total Current expense(benefit)tax Income A Income tax (benefit) expense(benefit) tax Income Total Totaltax income Deferred Provision for mining assets mining Provisionfor foreignjurisdiction in Earnings depletion Resourceand resultingfrom: ratestatutory on based Peru United StatesUnited Canada Other Other expense(benefit) Other Changes to deferredtaxto Changes utilizedcreditstax of Benefits expenses Non-deductible Peru Chile Australia StatesUnited Canada taxed at differentratesat taxed allowances assets and liabilities and assets effected)tax not (i.e.items $32 (14) $ $14 (14) $ 2001 2001 (84) (11) (50) (12) (74) 56 17 12 36 33 (1) (6) (7) (1) 4 - - - (2)$136 $ (523) $ 29 115 $ (209) $ $23 $21 29 115 $ (209) $ 001999 2000 001999 2000 27 15 (287) 3 - 331 1)(7) (14) 5)- - (52) (88) (7) (68) 6)34 (68) 7)(38) (76) (49) (29) 378 43 8100 78 612 16 6- 36 550 35 7- 51 14 (5) 3

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 73 BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 74 Notes continued Deferred income tax assets tax Deferredincome and Deferredmining Deferred income tax liabilities taxDeferred income Net deferred tax liabilities include: liabilities deferredtax Net liabilities deferredtax Net Total Other effectare:tax temporarydifferencesprincipal timing Thetheir and Provision for mining assets mining Provisionfor losses operating Net costsclosure and Reclamation Amortization B Deferred income tax assets and liabilities assets Deferredand taxincome B Inventory of close-out on Deferredgains Unrealizedforeign Foreigncarry-forwardscredittax tax Alternativeminimum liabilities Employeebenefit Property,equipment and plant costsclosure and Reclamation Taxcarry-forwardsloss explorationcosts Property,equipment and plant Total assets deferredLong-termtax assets deferredtaxCurrent liabilities deferredtaxGross Other assets deferredtax Net Valuationallowance assets deferredtaxGross Other Long-termdeferred cash flow hedge contractshedge flow cash exchangelosses carry-forwardscredit tax liabilities tax 312 $ 244 $ 244 $ $- (50) $ 2001 2001 (150) 111 397 456 212 433 645 400 (37) (21) 48 32 81 59 41 (6) 6 8 6 8 - - - ()$32 $ (3) $ (8)$15 $ (287) $ 8 280 $ 286 $ 1 633 $ 311 $ 633 $ 311 $ 001999 2000 1999 2000 27 - (267) 16 (132) (126) 2 783 428 0 859 503 226 417 192 643 388 580 3 780 437 1)6 (19) 88 18 023 37 73 30 48 76 313 - 13 21 71 80 576 75 26 14 8 2 (33) (8) (8) 69 111 6 (15) - 1CAPITALSTOCK 11 will be recognizedapplicable.be when will any,and if liabilities,significant assets and be may taxrecognizedincomeof the amounts in changes purposes.coststaxFutureincomeoffor incurred deductibility the and liabilities; assetsand individual strategies;basesofplanning taxestimates the of interpretationtaxrelevantknownof legislation; tax Company’sthe on based is liabilities assetsand tax expire.not do and million $110 to amount years.creditsnext20tax Alternative minimum overtheexpirevarioustimes$296 at million and expirenot do million $1,068 which of million, $1,364 income.future against losses tax relatedthe utilizeregardingtoability judgement its Company’sthe on based is recognitionwhich ofthe $76operatingcarry-forwards,torelatingloss million assetsfutureinclude taxclosureNet liabilities. and reclamationproperty, and to equipment and plant forwardstemporarydifferencesand timing relate that Taxmillion).$81 operatingcarry-lossassetsinclude – $75(2000duration, is million in permanent essentiallyStates,Unitedis investment the which in temporarydifferences Company’srelatedthe to unrecognizedforofliabilities future taxamount The voting, dividend (payable in Canadian dollars),(payableCanadian and dividend voting,in same essentiallythe has and holder the of option the at time any at sharecommon Barrick 0.53fora of exchangeableexchangeableshares.HCI is shareEach exchangeableHCI 11.1issuedmillion (“HCI”) Inc. Canada Homestakeacquisition, 1998 a with connection In shares Exchangeable B nil). (issued 14,726,854preferredSecond A sharesSeries and 1) (issuedshare voting special C Series 1 and 9,047,619nil), (issued A Series nil), (issued B Series 9,764,929million),534 Firstpreferred shares, sharescommon(issued of number unlimited an of comprisedCompanyis the Authorizedcapitalstockof capitalissued Authorizedand A The measurement and recognitionincomeof measurementand The Operatingcarry-forwardsloss to amount exchange of all HCI exchangeableHCI sharesthen exchangeall of requiretothe obligation, the not but right, havethe exchangeableCompanysharesoutstanding,will the HCI million fewerarethere1.4 that than time such exchangeablesharesoutstanding. HCI exchangethe sharesofissuanceon forcommon Barrick reservedCompanymillion had the 1.6 2001 31,December at shares.commonAs Barrickmillion) 1.8 - (2000 million 1.6 equivalentareto outstanding and exchangeableHCI million)shareswere3.3 – (2000 million 3 2001,31, December at As rights.voting their exchangeableHCI sharesreceivetothe ofholders exchangeableforshares,providesmechanism the HCI the ofholders the fortrust transferin the agent towasissued stock,which voting special ofshare A share.common Barrick 0.53 a ofas rights other usadn sa eebr3,20 1 6 4 19 3 22 2 21 2001 31, December at as Outstanding 20 activity 2001 2000 31, December at as Outstanding activity 2000 1999 31, December at as Outstanding activity 1999 1998 31, December at as Outstanding xrie -$ 27 13.44 9.03 $ $ 26.10 $ - 2 - - 13.72 $ 22.77 29.45 24.32 - $ $ $ 1 29.66 $ - - 1.40 1 17.74 $ (4) $ 22.95 30.69 24.24 $ $ - $ 1 32.77 - - $ 5 (4) 25.71 26.32 $ $ 31.72 $ (1) 3 (1) expired or Cancelled Exercised Granted expiredor Cancelled Exercised Granted expiredor Cancelled Exercised Granted At any time on or after December 31, 2008, or at or 2008,31, December after or on time anyAt purchase option activity:purchaseoption options.grantingof wereyear-end,availableoutstanding at thosefor shares,commonmillion)beyond 7 – 1999 million, 6 years.exercisablearegranting,10 toand over 7 year,each toyearsubsequent the in beginning quarterrateone a ofyearsfirstfourvest overat the grant.ofTheydate the to prior day the on priceshare exerciseCompany’san the ofprice market closing haveoptions The2011. 2, Decembervariousdatesto at outstanding,expiringpurchaseshareoptions common werethere2001million 2531, December at As purchaseshareoptions Common C exchangeableHCI share.each forsharecommon Barrick outstanding0.53fora of omnWihe omnWeighted Common Weighted Common mlin)($ mlin)(US$) (millions) (C$) (millions) The following is a summary of common sharecommonof summary a followingTheis – (2000 million 9 2001,31, December at As hrsaeaepiesae averageprice shares averageprice shares

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 75 BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 76 Notes continued income and income per share for the yearended the forshare per income and income resultingnetformaproThemillion).$30 – 1999 million, $30 – (2000 million $31 be would2001 31, December yearended the forstockcompensationof ranging0.44%fromSFAS 1.4%.toUnder cost the 123 6.7%yield toexpected4.8%from dividend an and volatility,41%to 30% term, interest rates ranging model with assumptions of a 4 a of assumptions with model Black-Scholesfairthe valuewasThisestimated using $37million).– (2000 million wasgranted2001$18 in Company’swerethe fairvalueofThethat options awardgranted.the datefairis value,the their on at awards,stockcostcompensationof disclose the must fair-valuethe method adopt not doescompany that A grantedemployees.stockoptions tovalueof faircostcompensationthe in companiesinclude to years).5 years– (20004 C$19.12)average– (2000an of termremaining and averagehavean exerciseoptions C$19.34ofprice Theacquisition. the of part Companyas the by wereassumed that outstandingSutton stockoptions with connectionshares) stockin common its of approximately0.70.7 shares– (2000million million issuetoobligatedCompany is the options, abovepurchasesharecommonthe to addition In The following is a summary of common share purchase options outstanding as at December 31, 2001:31,December at outstandingas purchaseshareoptions common of summary a followingis The 25 10 58$2.97$26.18 $ 7 25.69 $ 8 15 31.05 $ - 22.55 $ options C$ 90 06 3.81$ 33.58 $ 23.12 $ 15.92 $ 1 1 1 38.90 $ 33.58 $ 4 21.82 12.02 $ $ 3 6 8 38.90 $ 1 4 1 4 4 40.66 $ - 29.00 $ 28.73 $ - 17.75 $ 17.68 $ - 8.96 $ options US$ 44.25 $ - 34.00 $ exerciseofprices Range SFASrequirenot encourages123does but 1 ⁄ 2 - to 10-yeartoexpected - omn vrg egtdCmo Weighted Common Weighted Average Common mlin)(years) (millions) hrsrmiiglf vrg hrsaverage shares average life remaining shares 97$ 82 1$ 30.32 $ 11 28.29 $ 7 19 1.73$ 22.99 $ 3 16.67 $ 7 6 (2000 – $0.22 per share, 1999 – $0.20 per share).$0.20per – share,$0.22 1999 per – (2000 StatesUnitedtotalling sharedollarsin $0.22 per dividends paidCompany and declaredthe 2001, In Dividends E shares,respectively. million 548 shareswereand 538million 1999 and 2001forcalculationshare per income netdiluted sharesthe forof anti-dilutive.number Thebe wouldso do toreflected, wasas not 2000 in share per lossnet the on purchaseshareoptions common effectofThe yearend. at outstandingas options exercisepurchasesharecommonthe effect ofthe of 528shares).– million 1999 shares,535million shares– (2000536 to million year,sharesoutstandingthe for amounted which weightedaveragecommonofthe of number basis the (loss)wasshareincomecalculatedon Netper (loss)shareincome per Net D $0.40,and respectively). million $214 ofshare per income and income net $(2.28)respectively,and million – $(1,219) 1999 and ofshare per loss and lossnet respectively – (2000 $0.12,and million $65 is 200131, December Diluted net income per share reflects the dilutivereflectssharethe per income netDiluted Options outstanding Options exercisable Options outstanding Options price (millions) price 2BUSINESSCOMBINATIONS AND 12 costs include: $72 million of employee$72ofcoststermination include: million merger.relatedthe to Integrationrestructuring and costsrepresent external,incremental costs directly costsmerger.relateddirectlyother the to Integration accountingand investmentlegal, include banking, restructuringTransactioncostsmillion. $85of costs integrationand and transactioncosts$32million of include tax)afterand effectsmillion tax($107 beforerelatedcostsmillion Mergerand totalled $117 Combined (loss)income Net Combined 31 December Forended year the million). $10 oftax (netof million $107of excludesrelated2001forincomecosts mergerand merger.the to prior periods the forNet amounts separatecombined the the forcompanies and Homestake.presentationand Barrick of conformto the reclassificationsmade have been HomestakealwaysCertaincombined.had been merger,and Barrick presentedif periods as all with statementsretroactivegivefinancial effectthe to pooling-of-interests.Accordingly, consolidatedthe 0.53:1.ratiomergerwasa ofaccountedThe as for exchangean Homestakesharesupon basedcommon outstandingsharesofthe exchange all forin issued stockwere139.5common Barrickshares of million agreement,approximatelythe ofterms the Under HomestakeCompany.mergedwith Mining Barrick of wholly-ownedsubsidiary a 2001,14, December On HomestakeCompanyMining A ACQUISITIONSPROPERTY Gold sales Gold Homestake Barrick Homestake Barrick The following table sets forth summary data summary followingforthsets tableThe 203 $ 1,324 $ 1,989 2001 256 665 (53) 119 244 $ (1,189) $ ,0 1,421 $ 1,307 $ 105 260 (1,065) ,3 2,057 1,936 001999 2000 14 (16) (124) 2 636 629 equipment, less $5 million for reclamation obligations.reclamationfor million $5less equipment, property,for million $45 and capitaland workingplant netfor million allocatedpurchaseprice$3 the with purchasetransactionwasa Theaccountedcash. as for in $26Companymillion and the sharescommonof issuednewlyconsideration million consisted1.4 of Case.ofPurchase wholly-ownedsubsidiary a BargoldsharesCorporation,of the of 100% purchasing transactionwasCompanyTheeffected the 50%. by Company’s25%fromtothe mine the ownership in increasingmillion, $43 for mine MountainRound the PomeroyCompanyInc.’s & (“Case”)25% interest in Company2000,Effectiveacquiredthe 1, Case July Mine Mountain Round C respectively.million, $9 and million $140 toamountedcash, in million $16 acquired,including liabilitiestotalvalues assetsof and purchase.assigneda accountedThe as been for has PangeawasofpurchasedC$7.00. for acquisitionThe shareoutstandingcommonEach million. $131cost of a exploration(“Pangea”),an company,Inc. Goldfields at 27,July On Company2000,acquiredthe Pangea Inc. PangeaGoldfields B (see6). liabilitiesnote accountspayableaccrued in and included are million $65 of2001 31, December at unpaidremained Homestakecertainof executives’ contracts.employment costschange-in-controlassociatedprovisionsand with severanceaccruedcoststermination included benefits Employeenotification.yearof one takewithin place 17,December Terminations2001. employeeswill the of corporateof office. as people theseWe notified Homestakethe administrativecomprisingat functions forceworkmainly people, 177the byofreduction employeecoststerminationrepresents approved the miscellaneousitems.relatedother to million $10 corporatefacilities,other and certainoffice and Homestakeclosureofrelated costs,the to million $3 Accruedcostsrestructuringterminationthat and chargefor the 2001,Through31, December

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 77 BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 78 Notes continued Company’saccountingpolicies. conformadjustedmergedtoentities,the to the of sheetsbalance statements and combinedincomeof the include toacquisition presentedthe to prior Comparativefigureswererestated periods all for Company’sthe with combinedrecorded values. shareholders’Suttonand ofwereequityliabilities pooling-of-interests,a accordinglyassets,and the issued. sharescommonbeing million 17 Company,the ofsharecommon a ofresulting in Suttonofsharewascommonexchanged 0.463 for Tanzania.in Bulyanhulumine the outstandingEach explorationassetwascompanyprincipalwhose SuttonResources Ltd.(“Sutton”), publicly-traded a 26,MarchCompany1999, On acquiredthe SuttonResources Ltd. F transaction.relatedthis tomillion expenses $5 of Companyrecordedthe combinationbusiness presented.1999,periods In all for ArgentinaGold of resultsthe statementsconsolidated include financial pooling-of-interests,accordingly,and Company’sthe wasa accountedcombinationbusiness Theas for VeladeroArgentina.the northern in propertyin interest60% its assetis companyprincipalwhose explorationpublicly-tradedgold Canadiana Gold”), Corp.(“ArgentinasharesacquiretoArgentinaGold common million Company1999,11 issuedthe April In Corp.Gold Argentina E retainedroyalty.a to Codelcocontributedcash.property,ofform subject the wasin primarily capital contributionsubscribed CodelcoCompany’s49%).Theand 51% (Barrick (“ADLF”)ownershipintereststheir to proportion in Faldala de Agua in million $15 capitalof additional (“Codelco”)CobreChile del contributed Nacional CorporacionCompany1999,Octoberand the In Faldala de Agua D The business combination wasaccountedcombinationbusiness Theas for 13 PROVISION FOR MINING ASSETS PROVISIONFORMINING 13 Other Troiluslitigation assets mining Provisionfor redundant equipment at the Kalgoorlie Mine.Kalgoorlie the at equipment redundant certaindownwriteto and acquisitionPlutonic the of part propertyacquiredoffas a writeto million $12 $27million. of other in included is amount costs.exit other This and benefits termination recordedprovisionemployeefor$23million a restructuring,Companythe the with connection 2002.In ofsecond quarter operationsthe by expectedcompletetois Mine Dakota.TheSouth in Homestakethe Mine operationsat restructuring the a of Canada. in Mine Bousquet Statesthe United and the Homestake in Mine States;United Betze-Postthe the the in at Mine low-gradevariousassetsstockpileincluding inventories explorationand Peruproperties; Propertyin Pierina Argentina;the and Chile Pascua-Lamain Projectthe variousassets.ofThese assets amountsincluded: carrying coverwritedownthe toofearnings the to provisionnon-cash billion $1.6 CompanyThea took environment.price gold current the reflecttoproperties re-evaluationa explorationcertainofand gold; ofprice downwardreassessmentrealizedlong-term the of the and price gold spot the weaknesscontinuedin events.ofthe Theseeventsnumber included: estimatedfairwasa values,their bytriggered which assetsvaluescertaintocarryingofofreduction the 2G(v).note in evaluationThisout resulted set basis in the property,evaluationon its equipment,of and plant comprehensiveCompany2000,a performedthe In AND OTHERUNUSUALCHARGES AND In 1999, the Company1999,recordedthe In chargesof Company2000,announcedthe September11, On (note17C) $59 $- 2001 59 - ,2 15 $ 1,627 $ ,0 12 $ 1,600 $ 001999 2000 73 27 -- 4SEGMENTINFORMATION 14 Operatingcosts basis.district a on operationsevaluatedareitsmanaged and and industry mining Companygold Theoperates the in Gold sales Gold Other MountainRound Plutonic Hemlo CreekEskay Kalgoorlie Bulyanhulu Pierina Goldstrike Other Round MountainRound Plutonic Hemlo CreekEskay Kalgoorlie Bulyanhulu Pierina Goldstrike 823 $ 1,080 1,989 2001 244 473 331 103 104 319 77 49 61 16 80 35 45 79 83 87 60 5 822 $ 850 $ ,3 2,057 1,936 001999 2000 6 329 265 335 401 539 378 5 936 950 1 100 322 111 295 029 53 60 50 54 85 56 40 76 41 336 69 82 63 87 71 80 88 75 -- -- Corporateexpenses,net relatedcosts and Merger business and Exploration Net income (loss)income Net in changes ofeffect Cumulative (loss)beforeincomechanges Net taxesIncome Segment income (loss)incomebefore Segment Provision for mining assets and assets Provisionmining for Amortization Pierina Goldstrike development Other accounting principles accounting principlesaccounting in Other Other Round MountainRound Plutonic Hemlo CreekEskay Kalgoorlie Bulyanhulu Pierina Goldstrike taxesincome Pascua-Lama chargesunusual other Round MountainRound Plutonic Hemlo CreekEskay Kalgoorlie Bulyanhulu Pierina Goldstrike $96 2001 (117) (103) 212 501 408 175 138 (59) (46) (59) 74 14 97 13 18 12 31 99 18 12 10 40 17 17 (1) 8 7 8 - - - 119 244 $ (1,189) $ 106 - (1,036) 167 (15) (1,627) 116 244 (1,166) 001999 2000 14 - - (184) (300) 19 (139) (149) 17 (15) (107) 0 (115) 209 2 354 321 543 493 9 578 493 7 172 133 176 128 9)(60) (92) 2)- (23) 1129 81 181 31 413 28 (1) 14 24 110 17 78 27 23 9 12 54 10 16 10 58 18 (7) 1- 7 (5) - -- --

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 79 BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 80 Notes continued Segment assets Segment byassets Identifiable expenditurescapital Segment Totalreportableforassets Other Gold sales by geographicareaby sales Gold Cash and equivalents and equivalents and Cash Round MountainRound Plutonic Hemlo CreekEskay Kalgoorlie Pascua-Lama Bulyanhulu Pierina Goldstrike Chile/Argentina Australia Canada Tanzania Peru StatesUnited areageographic MountainRound Plutonic Hemlo CreekEskay Kalgoorlie Pascua-Lama Bulyanhulu Pierina Goldstrike segments Other Other Other Chile Tanzania Australia Canada Peru StatesUnited short-term investmentsshort-term 1,617 $ 1,873 $ 251 $ 5,202 $ 607 $ 1,989 $ 5,202 $ 1,064 $ 4,142 2001 313 247 218 659 726 257 470 525 666 731 153 147 680 327 244 262 319 733 95 51 69 15 11 10 19 69 27 46 40 60 6 ,7 1,952 $ 1,678 $ 2,451 $ 2,028 $ 481 $ 276 $ ,9 6,791 $ 5,393 $ 787 $ 710 $ 2,057 $ 1,936 $ ,9 6,791 $ 5,393 $ ,4 1,043 $ 1,045 $ ,8 5,639 4,288 001999 2000 7 445 326 376 1,099 145 281 146 1,177 511 886 1,183 583 772 217 148 489 594 1,181 514 891 40 115 107 203 8 298 187 473 660 8 386 283 4 244 308 322 249 252 295 2 766 822 851 61 85 98 44 81 11 12 34 15 32 49 463 34 140 95 34 63 54 -- 5SUPPLEMENTALCASHFLOW 15 Adjustments to reconcilenet to Adjustments Change in operating assets operating in Change (loss)income Net cash of Components taxesIncome INFORMATION Cash providedbyCash Interest, net of amounts of Interest, net providedoperatingbyCash Recoverytaxesof(payment) of valuefair in Change Unrealizedforeigncurrency closeout on Deferredgains closure and Reclamation taxesDeferredincome deferredof Amortization Amortization activities: operatingprovidedby cash to(loss) income Other items Other changes ofeffect Cumulative assets mining Provisionfor Accountsreceivable liabilities: and follows:as areactivities providedoperatingby operating activities operating capitalized payments: followingcash the includes activities Accounts payable and Accountsand payable deferredInventoriesand on development costsdevelopment on instruments derivative intercompanydebt on exchange(gains)losses contractsforwardofsales (net) costs costs stripping in accounting principles accounting in accrued liabilities accrued expenses $96 721 $ $24 2001 150 501 (11) (50) (70) 16 10 19 37 67 (6) (2) 1 - - 119 244 $ (1,189) $ 4 820 $ 940 $ $22$29 ,2 15 1,627 001999 2000 27 15 (287) 3 83 137 9 543 493 3)(58) (33) 310 (10) 13 16 3- 23 1(13) 11 (13) 27 9143 39 1(3) 81 1(31) 21 4 3 (4) 435 6DERIVATIVEINSTRUMENTS16 to manage these risks.these manage to contractsdeferredcontractsoptions salesspot and inflows.anticipatedcashfromCompany The uses differtosilver and gold of sale inflowsthe from cashcommoditiescauseactualsilver and gold in commodityprices.volatilityfluctuationsfromPricein arise may that fluctuationsflow cash and earnings unanticipatedsignificant,mitigatetoinstruments risk-managementstrategyderivativeuses that operatingresults.its on marketshavethesevolatilitymayof the effects that adversepotentiallyreduceto seeksthe markets and unpredictabilityfinancial commoditythe and of on Company’sThe risk-managementprogram focuses overallits ofintegralrisk-management program. part an Companyas the by managed monitoredand interestand rates. exposuresThesefinancial are commodityprices,foreign-currencyin exchangerates effectschanges relatedofthe risks to including risks, Company’svarietymarketa oftoexpose activities it copper.and silverby-products as as wellsuch The as product,gold, primary its sell producetoand countriesprincipal six operationsCompanyin Thehas strategies Objectivesand using for B leveraged.be toconsiderwould it which instruments exposure.derivativeintoenter Companynot Thedoes diversifiedcreditexchangeindiceswith ratesbond or contractscommodities,interestinclude rates, foreign the in underlyings The contracts. flexibilitythe into Companyincorporatetothe allow credit,and tenor agreements,comparedexchangeto traded contracts, derivativetransactions.Theseprivately negotiated intoenteringfor basis primary contractsthe as CompanyTheover-the-counterutilizes (“OTC”) Derivativeinstruments A derivativeinstruments The Company maintains a commodity-priceCompanya Themaintains commodity,foreigninterestexchange and rate market and subject,Company exposuresis the risk ofwhich to analysisitsthrough developedare management by that CommitteeFinanceapprovesalso strategies hedging derivativeofactivity.reporting and monitoring as The well valuation,internalareascontrolas ofand the proceduresderivativetorelatingin instruments reviewsderivative-instrumentand usage; internal derivativestoprovides activities;for guidance philosophyrisk-managementrelatingobjectivesand approvesCompany’sthe definescorporate that policy derivativesCommitteeFinanceits The activities. Company’sthe risk-managementstrategyon and scopeofBoardDirectors ofthe the toreports on Company’sthe Executiveincluding Officer,Chief Company’sthe ofmembersfive of Board Directors,of comprisedCommittee,FinanceTheis function. which Company’sthe treasuryinvestmentand activities Committee’sthat of part Committeeas oversight of Finance controlits of and direction, management, the risks.these manage to options and foreign-currencyforward exchangecontracts, swaps currencyexchangein rates. CompanyTheuses volatilityfromarise may flowsthat cash and earnings in unanticipatedfluctuationsmitigate toinstruments risk-managementstrategyderivativeuses that deferredinterestcontracts.spot returnof component Companytotalusesreturnswaps the modifyto sensitivity,borrowingcosts.manage to The and swapsinterest-rateswaptionsmanage and to deferredcontracts.Company interest-rateTheuses spot the interestin the returnimplicit component manage deferredcontracts;(3) spot and in costs implicit borrowinggold borroweditscostincluding offunds, totalreturnand swaps; lowerthe obligations (2) debt interestshort-terminvestments,rateits sensitivityon interestrates. Company’smanage The (1) toare goals volatilityfromin arise flows that cash or earnings in fluctuations unplanned significantmitigateto strategyderivativeusesinstrumentsmanagement that The Company’sThe toderivativessubject are activities foreign-currencyCompanya Themaintains interest-rateCompanyan Themaintains risk-

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 81 BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 82 Notes continued Averageprice Ounces for Scheduled were:200131, December at commitments rates.leasesales outstandinggold gold The and Libor $279ofmarketpricerates and spot for gold a on contracts,the basedflowspresentunder cashvalueof net the estimatedon basedis and $356million, was200131, contractsDecember the fairat valueof reviseddates.favorableand deliveryThe original the contractat pricethe revised and datethe delivery prevailingbetweenthe forward at marketprice gold differencethe on adjustedbasedcontract is price rescheduled,the is datedelivery a time the At contracts.the under datedelivery reschedule the ability,discretion,soletothe Company its has at contracts,the ofthe terms contracts. the Under deferredsalesspot determinedunder prices pre- at productionfuture gold its ouncesof million 18.2 deliveroutstandingtocommitments SFAStopursuant 133. derivativescontractsaccountedsalesas not forare contracts.Accordingly, Company’sthe deferred spot paragraphin 10(b)SFASof such toapplies 133 purchases/normalnormal the exceptionsales included that documented determinedand Companyhas the SFASderivativeunder a of 133,definition the meet silver.and gold in contractsfluctuationsthese While pricepossibleagainst hedge a as act which and variouscounterpartieswith production silver and gold futurepricesforcontractsestablishselling that deferredenteredsalesCompanyspot intoThehas Derivativeexcludedinstrumentsfrom C Company’sthe treasuryfunction. risk-managementstrategiesand todelegated is hedging ofimplementation Responsibility the for Company’sthe into overall risk-managementstrategies. strategiesresultingincorporatedhedging then are sources.industryThe analysisfrominternaland per ounce $ 365 $ 340 $ 340 $ 340 $ 344 $ 340 $ 340 $ 340 $ 365 $ ounce per 2006+ 2005 2004 (thousands) 2003 2002 in delivery the scope of SFASofscope the 133 At December 31, 2001, the Companyhad the 2001, 31, December At ,0 ,0 ,0 ,0 8,600 1,400 2,800 2,600 2,800 18,200 $ 345 $ Total Change in fair value of derivative instruments instruments derivativeof valuefair in Change (23) otherwise realizedor instruments Derivative instruments derivativeof inception receiptsat Cash instruments Fairfinancial derivativeof value 0220 0420 06 Total 2006+ (16) 2005 $ 2004 2003 2002 Fairderivativeinstruments of maturity by value net – liabilities Derivative assets Derivative includes:200131, December derivativefairvalueat ofTheinstruments instruments Fairfinancial derivativeof value Fairderivativevalueofinstruments E transferredearnings.to comprehensiveexpectedareother incomebe to in accumulatedmillion) $1 oftax (netof million $11 of 2002,gains comprehensiveIn earnings. toincome other frommillion)$3$24 oftax (netof million forecastedthe transactionaffectsearnings. period same recorded,the is itemin hedged the which in item line the in included areearnings comprehensivecurrent-periodtoother income contractsreclassifiedareaccumulatedfrom that d on losses and gains Forhedges, flow cash Transfersto/from comprehensiveother income D Derivative liabilities Derivative $ 5 $ (11) $ 1 $ (18) $ 7 $ (16) $ 7 $ (18) $ 1 $ (11) $ 5 $ ete uigteya 16 (42) $ year the during settled 2001 1, January at o-urn (60) 40 17 $ Non-current 33 (16) $ Non-current Current 2001 31, December at year the during urn (13) Current In 2001, the Companytransferredthe 2001,ofloss In net a (millions) erivative (73) 57 derivative assets in other assets in the balance the assetsin derivativeother assetsin inventoriesdeferredin non-currentexpensesand and liability.currentpresented a been as has portion current liability,casethe a which is in ifportion current the non-current,excepttotalas in classified is assetnet a is fairderivativewhosevalueinstrument a current, and totalas in classified is liabilitynet a fairwhosevalueis Forderivativederivativethoseinstrumentinstruments,a positions.non-current currentand its into instrument bifurcatetoderivative not the chosenCompany has beyond,the and yearend within flowsboth cash with followingexceptions.the For derivativeinstruments derivativeinstruments,with the ofmaturitydate the on basednon-current or current either as liabilities 2001.31,December at as derivativemillion totalledagainst$131liabilities receivableoffsethavebeen counterpartiesfromthat RelatedTo Contracts,Certain 39,No. FIN on conditions the when derivativefromariseinstruments, counterparties that to/fromdue amountsderivative instruments,and fairindividual valuesofthe ofnetting reflectthe fairvaluesderivativeliabilitiesTheof assets and auiy20 0320 0520+Total 2006+ 2005 2004 2003 2002 options call Writtengold Maturity 200131, December Derivative outstandingat instruments F Silver forward sales contractsforwardSilversales options Writtencall silver options call gold Min-max vrg rc e uc .0$51 .0$51 .0$5.05 $ 297 $ 5.10 $ 5.03 $ 5.10 $ 336 $ 5.10 $ 5.00 362 $ $ 5.10 $ 5.50 336 $ 5.00 $ $ 5.25 328 $ $ Averageounce per price Ounces 4.88 $ 363 $ Averageounce exerciseper price 297 $ Ounces 303 $ ounce Averageper price cap Ounces Averageprice strike Ounces vrg lo rc e uc 7 272 $ 272 $ ounce Averageper price floor The CompanyderivativecurrentTheincludesassets CompanyThederivativeclassifies assets and (thousands) (thousands) (thousands) (thousands) (i) (i) (ii) have been met. Accounts met. havebeen 10070030020010024,000 19,750 1,000 2,000 2,000 3,000 2,000 7,000 11,000 3,750 12,000 ,3 2 7 5 ,6 4,335 1,460 550 570 425 1,330 ,0 1,600 1,600 Offsetting Of Amounts OffsettingOf costs using marketinterestcostsusing rates. borrowingLibor-based presentthe netvalueof the referenceunderlying the valueofassetcompared to differencethe faircalculatedbetweenon basedthe currencyexchangeand rates. marketinterestcontractson the based under arising presentflowsfuturecashvalueofnet the on based swapsforeignexchangeand contracts calculatedare risk-freethe interest rate. currencyvolatilitiesand and silver marketgold, respectively,options; the oftermremaining the ounce,$279of$4.61silverper and and gold for pricesspot followingassumptions: reflectingthe models, pricing option calculatedareusing options 2001.31,December at marketrateson valuationtechniques based other and models determinedareusing instruments obligations.long-term other in derivativecurrentincluded areinstruments non- accountsand liabilities,payableaccrued and in Currentderivativesheet.included are liabilities Fairvalueestimatestotalfor return swaps are FairvalueestimatesLibor,for ratelease gold Fairvalueestimatescurrencycommodityfor and Company’sfairvaluesthe Theof derivative

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 83 BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 84 Notes continued C$ forward and min-max currency min-max forwardand C$ Foreignexchangecontracts rateswapslease Gold A$ forward and min-max currency min-max forwardand A$ interestrateflowhedges Cash auiy20 0320 0520+Total 2006+ 2005 2004 2003 2002 interestrateflowhedges Cash Maturity Totalswapsreturn Fairinterestratevaluehedges Notional amount Notional contracts Notional amount Notional contracts amount Notional swaptionsswapsand – swapstotalreturn on fixed Pay Fixed rateFixed Averageprice Averageprice rateFixed amount Notional rateFixed Notional floating Receivepay fixed, rateFixed amount Notional rateFixed amount Notional amount Notional swaptionsswapsand – contractssales gold investmentsand short-termReceivefor fixed Receive fixed against debentures against Receivefixed Pay fixed for Bulyanhulu financing Bulyanhulufor fixed Pay (thousands of ounces)of (thousands (%) (%) (%) (%) (%) (US$) (US$) (iii) (millions) (A$ millions)(A$ millions)(C$ (millions) (millions) (millions) (millions) (iii) (iii) (iii) (iii) 0$3 0$3 0$150 $ 0.64 0.51 184 $ $ $ 30 0.51 $ $ 30 0.51 275 $ $ $ 200 30 0.51 $ $ $ 50 0.51 941 30 $ $ $ $ 0.51 176 30 $ 0.64 $ 88 $ $ $ 100 0.64 $ 96 $ $ 530 $ 25 115 $ $ 907 $ 20 193 $ $ 100 $ 150 $ 403 $ 61 $ .%20 .%22 .%2.4% 2.6% 2.2% 2.1% 2.0% 1.2% .%74 .%6.0% 6.0% 7.4% 5.3% .%43 .%49 .%5.3% 5.4% 4.9% 3.6% 4.3% 4.4% 4 5 4 9 ,3 6,155 4,033 891 440 451 340 0 100 $ 100 $ .%5.6% 5.6% 0 200 $ 200 $ .0 4.50% 4.50% recorded on the balance sheet at their fairvalue,their with at sheetbalance recorded the on wereaccountingtreatmentand hedge designatedfor SFASof adoption On 133,swapsthese longer wereno ratescontractsversa.vicefloating tofixedfromor deferredspot rateleasethe costgold in return or interestwherebythe rateinterest swapthe modified instruments,syntheticaccountedhedging as for deferredcontracts,spot associated with were interestratelease swaps,rategold are and which SFASof adoption the 133,tothe maturitydate. Prior and amount principal notional common a on based variable-rateinterest paymentsbetweentwoparties, rateswaps generallyinvolveexchangeand fixed ofthe (iii) current-periodreflectedearnings.havein been 2001 1, January tosubsequent options combinationvalueof faircomprehensivethe other in income.Changesin offsettingan with amount 2001 1, January fairvalueon contractsthe wereeffectrecognizedtheir that the at accountingforpurposes,contractshedgeswith as SFAStreatthesetoCompany not 133,electedthe of adoption On sales. futuregold of hedge flow cashwerea accountedoptions combinationas for respectively.SFASof adoption the 133,tothe Prior lowerexerciseand upper prices,the currenciesat commoditiesor the of stipulatedamounts sellto right Companythe the and buy to right the holder the giveforeign currencies.options and silverThe gold, in fluctuations pricepossible against hedge a as act that options “min-max”, as knownotherwise (ii) derivativeinstruments. accountingtreatmenttheseforthe in change any SFASresultin of not adoption Thedid earnings. 133 faircurrent-periodvaluereflectedin in changes subsequent with sheet,balance the fairvalueon derivativethesewereinstruments recorded their at SFASof adoption statedthe 133,toprice.a Prior at silver or gold ofstipulatedquantity a future date specified a on buy to obligation, the not but right, writer,purchaserthe (premium),fee the sells a for (i) Written call options are contracts in which the contractsareWrittenwhich options in call The Company has enteredCompanycombination,intoThehas Interestratelease swapsswaptionsgold and and be undertaken.be may that marketrisk ofdegree types and the limit parametersmonitoringestablishing byand that rate,rate,lease foreign-exchangegold and contracts commodity-price,associatedwith risk interest exchangerates.market Companythe Themanages prices,interest rates,rates,lease currency gold or commodityin adverselychange affectedbe a by might instrument financial a valueof the that risk the is Marketrisk marketrisk. exposes and credit toitself Companyderivativeinstruments,the using By marketrisks and Credit G derivativetheseaccountingtreatmentinstruments.of the in change anySFASresult ofin not did 133 adoption current-periodreflectedTheearnings. in fairvaluein changessubsequent fair valuewith their at weresheetbalanceinstruments recorded the on SFASof adoption the 133,derivativetothese Prior outstandingtotalreturnthe for swaps funds was“A-”. bond weightedaverageunderlying the ratingcreditof the 2001,31, corporateDecember Atfunds. bond referencespecific diversifiedassetsvarioushighly are Company,the caseof the maturitydate.In and the principal referencenotional common a asset,on based specific a futureon the in paid amount fixed a or lo and returncapitalgains (fixedplus coupons totalinterestthe variableLibor-based paymentsand (iv) derivativethesetreatmentinstruments.of accountingthe in change anyresult in not did exposureLibor.volatilitytoin SFAS of adoption The 133 strategyCompanyitsThethis minimizeuses to future.the deferredenteredcontractsin intobe to spot on earned be will contangothat the in implicit intereststart rateinterest swapsin rates lock to CompanyTheentersforward intooption. the ofwriter the agreementswith ratefloor swapsand cap and interestintoenterto option the of holder the allow transactionshaveoccurred.hedged originally comprehensiveotherthe where ofincome out transfersanycurrent-period togetherwith earnings,in reflectedhavebeen 2001 1, January tosubsequent swapsthe fairvalueof the in income.Changes comprehensiveother offsettingin an included amount Interestraterepresent options contracts that Totalreturnswaps representexchange ofthe sses)

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 85 BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 86 Notes continued netting agreements with all counterparties.all agreementsnetting with counterparty.Company’smasterTheuse to is policy derivativecontracts) that Companybetweenand the setoff a receivableofofpayable right and legal a enforceablelegally (i.e.,masteragreementnetting a is there when reasonablerisk creditmeasureofa counterpartyrepresents particular a with position zero.mark-to-marketnetcounterpartybeing The as Companyregardsthe exposurecredit its the to counterparty.exposure,negative net a is thereWhen exposuresnegativethat positiveand with the of exposurecredit“net” representsthe netting the counterparty,that with agreementmasternetting enforceablelegally a has counterpartyalso and same outstandingderivative the transaction with derivativeMasterAgreementgoverncontracts.all SwapsInternationalDerivatives an and Association that requiringof policy a Companymaintains also arise.The not concentrationsdo that risk creditof totalreturnassetsin swaps diversifiedsuch highly are referencethe that ensuring by counterparties,(4) and its ofcondition financial the monitoring (3) exposurecounterparty,its eachof to amount the ratingscreditgenerallyare“AA” higher,or limiting (2) counterpartieshigh-qualitywhosetransactions with intoentering derivative(1) byinstrumentsin risk (orCompanycreditTheitsminimizesrepayment) risk. therefore,counterpartyand, the repayment no assumes derivativeCompanynegative,contract a owesthe ofis Company.the forrepayment risk a fairvalue the When counterpartyCompany,the owesthe that creatingthus derivativepositive,indicatescontract a valueofis this lo or unrealizedgains minus contract,or the plus of amount notional the tolimited is risk creditof amount maximum the derivative.a Forin Company’sthe totalreturn swaps, fair-valuethe Company’sgain equal the will risk credit derivativecontract,a under performanceobligations counterpartyits a failsfulfill toIf instrument. derivative the under loss a torise give event, will referencedefaultcreditunderlying a the ofasset,or deteriorationqualitycredita in swaps,that risk the totalcaseofreturn derivativethe contract, a in of or terms the under performanceobligations its fulfill to When the Company is engaged in more than one than more in engaged Companyis the When counterpartyfaila might that risk the is risk Credit sses. Generally,sses.fair the when 17 COMMITMENTS AND CONTINGENCIES COMMITMENTSAND 17 to closing the arrangement would not be satisfied. be not arrangementwould the closingto studies,diligenceconditions due of basis the on that, determiningafteragreementterminated the HCI 1997,December capital.In working plus million $110 Troilusforpurchasetothe (“Inmet”)Quebec in mine Corporation Mining Inmet with agreement an into Companyenteredthe of wholly-ownedsubsidiary a 1997,October In (“HCI”) HomestakeInc., Canada claims and Litigation C regulations.lawsand expenditures such with complyto future,the expectsin maketoand made, has Companyregulations.Thelaws and applicable all with compliancebelievesoperationsin materiallyareits environmentand the and healthprotect topublic as restrictive.CompanyoperationssoThe itsconducts moregenerallybecoming and changing continually environment.areregulationsthe Theselaws and protectiongoverningofregulationsthe laws and variousfederal,tostate subject provincialareand Company’sTheexploration and activities mining Environmental B $35million).– 1999 million, $42 – (2000 2001operating costs,in in million was$41 extracted.Royalty included expense,is which minerals,other among silver and gold all on NSR 3% a to subject Propertyis the of portion Another royaltyNSR produced.copper2% on a and 10% to1.5% Propertyrangingproducedfromthe from gold on grossscaleroyaltyproceedsa tosliding subject is Pascua-LamaProperty.Property the of portion A valuablemineralsproducedthe the from on 3%of royaltyNSR-type a to subject BulyanhuluPropertyis The NPI. 6% royaltiesa and NSR payable5% a are property.mineralsproducedthe from maximum The interestroyalities(“NPI”) valueof payablethe on profitsnet and returnsmelter(“NSR”) net a to subject Goldstrike,Pascua-LamaBulyanhuluproperties.and royaltiessignificantmost Thethe calculation. at are of variousmethods and properties produced the from valuablemineralsroyaltytothe on based obligations Company’sthe ofSubstantially all subject areproperties Royalties A Most of the propertyGoldstrikeis comprisingthe ofMost plaintiffs against the Company.the dateplaintiffsagainst trial a Although 27,April relevantthe ofall denying 2001 allegations Fourthon answerComplaintformalthe to Amended itsCompanyThefiled merit. without are it against claims remainingCompanyThe the believes that case.the in defendantCompany a remainsthe result,a FourthComplaint.As the DismissAmended Company’sthe to part Motion in denied and part grantedCourt in the 2001,31, March Complaint.On Fourthcomplaint,the Amended amended further a filed 200014, June on defendantsand other certain Companyand the against restatingclaims their complaint amended an plaintiffs1999,filed the StatesUnited19,Augustlaws. securitiesunder On claim failedstatetoplaintiffs a had the that grounds severalthe Companyand defendantson other the against claims the dismissedCourt 1999, the 13, July On 1996.late Company in the undertakenby investigationdiligence due preliminary the torelating omittedstatetofactsmaterial and misleading and werefalseKalimantan,EastmateriallyIndonesia in deposit gold operateBusang developtoand the right secureeffortstothe its with connectionCompany in the bystatements made that things, other among Texas,of Texarkana alleges, action class The Division. EasternDistrict the forStatesUnited Court District the directorsformerofficersin othersor and and Bre-XdirectorsMineralsLtd.,officersits ofcertain and againstlawsuitinitiated action class a in defendant Appeal. of Court Columbia British the with decision the of Appeal ofNotice a filed HCI Inmet’son request.Februaryyetruled On not 7, 2002, has Court The HCI. breachby the ofdate the from interestprejudgementfor claim its on submissions maketoInmet permit to trial the re-opento Court the interprejudgementInmet awardnot did Court The million. C$88.2 of amount the awardedin be damages equitableshould Inmet that Specifically,held HCI. Courtagainst the and favorin Inmetfound ofmatter and the in decision releasedColumbiaits British ofSupreme Court the 2002,15, Janaury agreement.On breachedthe had HCI that alleging and agreement the oftermination the disputing SupremeCourt,Columbia British the in HCI against Februarysuit On filed 23,Inmet 1998, On April 30, 1998, the Company was added as a Companyas was the 30,added 1998, April On est. est. Inmet has requestedhas Inmet 18 COMPREHENSIVE INCOME (LOSS)INCOME COMPREHENSIVE 18 Comprehensive(loss)income Other health and safetypermits.and health federalstateenvironmentalunder commitmentsand agreements,partnershipventureand and under venturespartners joint and to obligations other and properties,interestsfinancing mining its in protector necessarymaintain to obligations other as performtocommitments ordinarycourseincluding businessofthe during enteredCompanyvariouscommitmentsintoThehas Commitments D Company.resultsthe operationsofof futureor condition financial adversethe effecton requiredreasonbypaytothereof, material havea will be may it which matters,amount anyother or or assessments taxproceedingspotential relatedany to threatenedor pending any in adversedecisions that believenot taxesyears.certaindoesfor mining It and income forreassessment to subject also Companyis ordinarycoursebusiness.Theofthe in arising complaintsproceedingsand legal variousclaims, determinable.currently not is plaintiffs claims the of out arising incur may any,Companyloss,if potentialofthe amount which The action. class a caseas the certifyto not or whether Court’son the decision pending Court the by stayedbeen casehas Discoverytime.the that in at commence will trial the presentlythat appearsunlikely 9,Texarkana,2002July forin set been has Texas, it Transfer of losses on Transferon losses of Foreigntranslationcurrency (loss)income Net to earnings (note16D)earnings to instruments derivative adjustments The Company is from time to time involvedtime toin time from CompanyThe is $84 $96 2001 sessment work and sessmentwork (10) (26) 24 126 276 $ (1,256) $ 119 244 $ (1,189) $ 001999 2000 6)29 (60) 7 3 (7) --

BARRICK ANNUAL REPORT 2001 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 87 Gold Mineral Reserves and Mineral Resources

he table on the next page sets forth Barrick’s estimates, however, and no assurance can be given that interest in the total proven and probable gold the indicated quantities of gold will be produced. Gold mineral reserves at each property. For further price fluctuations may render mineral reserves contain- 88 T details of proven and probable mineral reserves and ing relatively lower grades of gold mineralization measured, indicated and inferred mineral resources by uneconomic. Moreover, short-term operating factors category, see pages 89 to 91. relating to the mineral reserves, such as the need for The Company has carefully prepared and verified the orderly development of ore bodies or the processing of mineral reserve and mineral resource figures and new or different ore grades, could affect the Company’s believes that its method of estimating mineral reserves profitability in any particular accounting period. has been verified by mining experience. These figures are

DEFINITIONS

A MINERAL RESOURCE is a concentration or eters, to support mine planning and evaluation quate information on mining, processing, metal- occurrence of natural, solid, inorganic or fos- of the economic viability of the deposit. The lurgical, economic and other relevant factors that silized organic material in or on the Earth’s crust estimate is based on detailed and reliable demonstrate, at the time of reporting, that eco- MINERAL RESERVES AND MINERAL MINERAL RESERVES RESOURCES in such form and quantity and of such a grade or exploration and testing information gathered nomic extraction can be justified. A mineral quality that it has reasonable prospects for eco- through appropriate techniques from reserve includes diluting materials and nomic extraction. The location, quantity, grade, locations such as outcrops, trenches, pits, allowances for losses that may occur when the geological characteristics and continuity of a workings and drill holes that are spaced material is mined. Mineral reserves are sub- mineral resource are known, estimated or inter- closely enough for geological and grade divided in order of increasing confidence into preted from specific geological evidence and continuity to be reasonably assumed. probable mineral reserves and proven mineral knowledge. Mineral resources are sub-divided, in reserves: A measured mineral resource is that part of a order of increasing geological confidence, into mineral resource for which quantity, grade or A probable mineral reserve is the economi- inferred, indicated and measured categories: quality, densities, shape and physical charac- cally mineable part of an indicated, and in An inferred mineral resource is that part of a teristics are so well established that they can some circumstances, a measured mineral mineral resource for which quantity and grade be estimated with confidence sufficient to resource demonstrated by at least a prelimi- or quality can be estimated on the basis of allow the appropriate application of technical nary feasibility study. This study must

BARRICK BARRICK ANNUAL REPORT 2001 geological evidence and limited sampling and and economic parameters, to support produc- include adequate information on mining, pro- reasonably assumed, but not verified, geologi- tion planning and evaluation of the economic cessing, metallurgical, economic and other cal and grade continuity. The estimate is viability of the deposit. The estimate is based relevant factors that demonstrate, at the based on limited information and sampling on detailed and reliable exploration, sampling time of reporting, that economic extraction gathered through appropriate techniques from and testing information gathered through can be justified. locations such as outcrops, trenches, pits, appropriate techniques from locations such as A proven mineral reserve is the economically workings and drill holes. outcrops, trenches, pits, workings and drill mineable part of a measured mineral resource holes that are spaced closely enough to con- An indicated mineral resource is that part of demonstrated by at least a preliminary feasi- firm both geological and grade continuity. a mineral resource for which quantity, grade bility study. This study must include adequate or quality, densities, shape and physical char- A MINERAL RESERVE is the economically mine- information on mining, processing, metallurgi- acteristics can be estimated with a level of able part of a measured or indicated mineral cal, economic and other relevant factors that confidence sufficient to allow the appropriate resource demonstrated by at least a preliminary demonstrate, at the time of reporting, that application of technical and economic param- feasibility study. This study must include ade- economic extraction can be justified. UNITED STATESUNITED TOTAL OTHER AFRICA AUSTRALIA AMERICA SOUTH CANADA Summary Gold MineralReservesMineralResourcesGold and Summary Bulyanhulu Cowal Kalgoorlie TotalDistrict Yilgarn Pierina Veladero Pascua-Lama Holt-McDermott Hemlo CreekEskay Marigold MountainRound GoldstrikePropertyTotal Meikle Darlot Lawlers Plutonic Betze-Post (50%) (proven and probable) (provenand (50%) (33%) (proven and probable) (provenand (33%) (50%) (proven and probable) (provenand (50%) (50%) (proven and probable) (provenand (50%) (proven and probable)(provenand (mineralresource) probable)(provenand (mineralresource) probable)(provenand (mineralresource) probable)(provenand (mineralresource) (mineralresource) probable)(provenand (mineralresource) probable)(provenand probable)(provenand probable)(provenand (mineralresource) probable)(provenand (mineralresource) probable)(provenand (mineralresource) probable)(provenand (mineralresource) probable)(provenand (mineralresource) (mineralresource) probable)(provenand (mineralresource) (mineralresource) (mineralresource) probable)(provenand (mineralresource) probable)(provenand (mineralresource) probable)(provenand (mineralresource) (mineralresource) (mineralresource) ,7,9 007 82,272 0.077 1,070,298 1,8 009 2,245 0.019 20,379 118,489 0.173 117,846 16,433 0.151 108,854 6,7 004 46,491 0.054 863,373 9,303 0.079 118,443 3,954 8,416 0.030 7,166 0.043 16,862 133,003 0.030 196,573 0.057 242,686 296,411 178 .1 2,517 0.116 21,788 632 680 493 0.014 0.027 44,115 0.015 9,297 25,177 32,857 0.147 5,847 63,373 0.433 3,450 13,512 0.069 49,861 255 .4 1,773 0.141 12,555 12,009 0.428 2,133 2,770 28,026 0.031 0.049 5,724 68,413 4,089 56,395 0.061 3,434 0.141 93,641 0.171 29,031 20,127 2,686 0.134 1,332 19,991 4,748 0.015 0.053 89,056 89,233 1,203 0.067 17,823 00)(ztn (000s) (oz/ton) (000s) ,2 125 1,775 1.245 1,426 3,946 0.439 8,992 ,9 011 420 4,308 0.111 0.465 3,795 9,255 549 1,341 854 0.118 505 0.166 4,654 0.195 8,062 0.143 1,588 4,386 3,539 0.186 8,526 518 293 0.237 0.214 2,188 1,371 osGaeOunces Grade Tons 7 054 290 0.504 575 December 31, 2001 31, December 3,0 009 2,609 0.019 24,451 136,600 0.187 130,549 18,000 0.155 116,449 0,0 002 37,358 79,300 0.062 0.085 603,507 933,446 6,270 0.060 104,555 5,930 0.044 7,166 16,862 135,558 0.030 0.057 242,685 296,411 460 .6 2,397 0.164 14,610 355 0.035 7,248 10,085 0.110 3,739 6,451 66,126 0.365 3,509 0.458 10,234 0.063 14,100 55,892 728 .4 2,507 1,219 0.146 0.113 10,015 17,208 10,763 0.428 23,373 5,833 0.072 2,440 3,023 81,020 0.154 0.144 15,814 21,027 586 5,655 0.033 0.061 3,920 17,753 92,925 0.044 88,843 00)(ztn (000s) (oz/ton) (000s) ,1 130 2,118 200 1.310 1,617 206 0.029 6,880 0.022 9,353 ,8 068 4,566 0.618 7,383 433 1,405 496 0.111 378 0.157 3,904 0.188 1,511 8,921 0.145 1,240 2,638 0.163 2,605 0.131 9,272 9,501 438 406 0.155 0.194 2,829 2,088 osGaeOunces Grade Tons 5 037 176 0.387 456 4 011 62 0.141 442 ------December 31, 2000 31, December

BARRICK ANNUAL REPORT 2001 MINERAL RESERVES AND MINERAL RESOURCES 89 Gold Mineral Reserves

As at December 31, 2001

PROVEN PROBABLE TOTAL

Tons Grade Ounces Tons Grade Ounces Ton Grade Ounces Based on attributable ounces (000s) (oz/ton) (000s) (000s) (oz/ton) (000s) (000s) (oz/ton) (000s)

UNITED STATES Betze-Post 54,445 0.135 7,340 54,409 0.167 9,093 108,854 0.151 16,433

90 Meikle 2,288 0.549 1,256 6,704 0.401 2,690 8,992 0.439 3,946 Goldstrike Property Total 56,733 0.152 8,596 61,113 0.193 11,783 117,846 0.173 20,379 Round Mountain (50%) 87,983 0.018 1,587 30,506 0.022 658 118,489 0.019 2,245 Marigold (33%) 5,047 0.030 154 20,130 0.026 526 25,177 0.027 680

CANADA Eskay Creek 756 1.697 1,283 670 0.734 492 1,426 1.245 1,775 Hemlo (50%) 15,756 0.116 1,835 6,032 0.113 682 21,788 0.116 2,517 Holt-McDermott 127 0.196 25 1,244 0.215 268 1,371 0.214 293

SOUTH AMERICA Pascua-Lama 37,738 0.062 2,355 258,673 0.056 14,507 296,411 0.057 16,862 Veladero 14,781 0.053 787 181,792 0.042 7,629 196,573 0.043 8,416 Pierina 53,540 0.054 2,891 35,693 0.052 1,857 89,233 0.053 4,748

AUSTRALIA Plutonic 2,112 0.045 96 6,414 0.233 1,492 8,526 0.186 1,588 Lawlers 1,036 0.141 146 2,503 0.143 359 3,539 0.143 505 MINERAL RESERVES AND MINERAL MINERAL RESERVES RESOURCES Darlot 5,218 0.156 815 2,844 0.185 526 8,062 0.166 1,341 Yilgarn District Total 8,366 0.126 1,057 11,761 0.202 2,377 20,127 0.171 3,434 Kalgoorlie (50%) 42,108 0.057 2,417 51,533 0.064 3,307 93,641 0.061 5,724 Cowal 3,058 0.055 169 53,337 0.049 2,601 56,395 0.049 2,770

AFRICA Bulyanhulu 1,463 0.412 603 26,563 0.429 11,406 28,026 0.428 12,009

OTHER 3,652 0.110 401 143 0.133 19 3,795 0.111 420

TOTAL 331,108 0.073 24,160 739,190 0.079 58,112 1,070,298 0.077 82,272 BARRICK BARRICK ANNUAL REPORT 2001 MINERAL RESERVES AND MINERAL RESOURCES NOTES

1. Mineral reserves (“reserves”) and mineral resources (“resources”) have been calculated as at December 31, 2001 in accordance with National Instrument 43-101, as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934) as interpreted by the Staff of the U.S. Securities and Exchange Commission requires completion of a full feasibility study in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, the mineralization at Veladero is classified as indicated resources. Calculations have been prepared by employees of Barrick under the supervision of Alan R. Hill, P.Eng., Executive Vice-President, Development of Barrick and/or Alexander J. Davidson, P. Geol., Senior Vice-President, Exploration of Barrick. Except with respect to the Australian properties, reserves and resources have been calculated using an assumed long-term average gold price of $300 and a silver price of $5.00. Reserves and resources at the Australian properties have been calculated using an assumed gold price of A$475 (for Kalgoorlie, Plutonic and Cowal) or A$500 (for Lawlers and Darlot). Such calculations incorporate current and/or expected mine plans and cost levels at each property. Varying cut-off grades have been used depending on the mine and type of ore contained in the reserves. Barrick’s normal data verification procedures have been employed in connection with the calculations. For a more detailed description of the key assumptions, parameters and methods used in calculating Barrick’s reserves and resources, see Barrick’s most recent Annual Information Form on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission. 2. Resources which are not reserves do not have demonstrated economic viability. Based on attributable ounces attributable on Based SOUTH AMERICA SOUTH UNITED STATESUNITED OA 957 .8 642 3,0 000 21,945 0.050 437,605 6,442 0.081 79,547 TOTAL OTHER AUSTRALIA CANADA AFRICA As at December 31, 2001 31, December at As Gold MineralResourcesGold Kalgoorlie TotalDistrict Yilgarn Round MountainRound GoldstrikePropertyTotal Pascua-Lama Hemlo Pierina Veladero Holt-McDermott CreekEskay Marigold Bulyanhulu Cowal Darlot Lawlers Meikle Betze-Post Plutonic 5% ,4 007 8 384 .5 196 0.050 3,884 181 0.047 3,845 (50%) 3% ,2 007 4 177 .1 432 0.014 31,707 84 0.017 4,922 (33%) 5% 615 .6 171 025 .8 4,090 0.081 50,265 1,791 0.069 26,125 (50%) 5% ,7 003 4 ,3 004 58 0.024 2,434 34 0.023 1,479 (50%) 721 .7 302 958 .0 4,248 0.107 39,538 3,072 0.178 17,281 447 .6 98 466 .7 2,429 0.070 34,626 968 0.067 14,497 001 .1 12 321 .1 1,130 0.015 73,281 112 0.011 10,061 00)(ztn 00)(0s o/o)(000s) (oz/ton) (000s) (000s) (oz/ton) (000s) ,9 011 1 1,9 019 2,438 264 0.139 0.105 17,492 2,526 618 277 0.121 0.132 5,090 2,100 ,9 012 5 192 .1 413 0.210 1,972 256 0.172 1,491 ,8 076 ,0 492 .7 1,819 0.370 4,912 2,104 0.756 2,784 ,9 007 5 294 .3 1,761 0.136 12,994 85 0.057 1,499 ,6 005 1 1183 .3 3,475 0.031 111,883 216 0.055 3,962 ,3 011 5 924 .8 805 0.087 9,264 150 0.121 1,236 ,5 004 3 6,3 000 1,831 0.030 60,731 133 0.034 3,951 ,8 009 8 004 .1 567 0.019 30,024 28 0.019 1,480 osGaeOne osGaeOunces Grade Tons Ounces Grade Tons 1 020 3 ,4 026 295 0.236 1,247 23 0.200 115 - 46 .6 196 0.460 426 - - - - 549 .0 2,184 0.402 5,429 - - - ESRD()INDICATED(I) (M) MEASURED (M) + (I) + (M) 28,387 Ounces (000s) 5,881 3,056 7,320 3,923 3,397 1,846 3,691 1,242 1,964 2,184 541 669 955 377 516 196 318 595 92 4,2 002 18,104 0.052 346,221 2,4 007 3,475 0.027 126,841 203 .8 3,422 0.081 42,053 894 .1 401 0.014 28,944 004 .8 826 0.082 10,094 831 .2 1,990 0.029 68,321 699 .4 1,538 0.042 36,909 00)(ztn (000s) (oz/ton) (000s) ,4 010 1,033 0.160 6,449 ,5 032 1,977 1,924 0.302 0.331 6,554 5,816 ,9 013 840 0.153 5,498 ,5 038 818 0.398 2,055 ,8 006 116 0.016 7,486 ,1 006 90 0.016 5,714 ,2 055 2,124 0.555 3,826 osGaeOunces Grade Tons 2 020 185 0.200 923 3 001 53 0.071 738 4 069 94 0.629 149 2 023 200 0.243 826 8 .8 8 0.286 28 INFERRED

BARRICK ANNUAL REPORT 2001 MINERAL RESERVES AND MINERAL RESOURCES 91 Supplemental Information

3-Year Historical Review(1)

(US GAAP basis) 2001 2000 1999

Operating results (in millions) Gold sales $ 1,989 $ 1,936 $ 2,057

92 Net income (loss) 96 (1,189) 244 Operating cash flow 721 940 820 Capital expenditures 607 710 787

Per share data Net income (loss) $ 0.18 $ (2.22) $ 0.45 Cash dividends 0.22 0.22 0.20 Operating cash flow 1.35 1.76 1.55 Book value 5.96 5.95 8.45

Financial position (in millions)

SUPPLEMENTAL INFORMATION SUPPLEMENTAL Cash and short-term investments $ 733 $ 822 $ 766 Total assets 5,202 5,393 6,791 Working capital 484 576 646 Long-term debt(2) 793 901 803 Shareholders’ equity 3,192 3,190 4,514

Operational statistics (unaudited) Gold production (thousands of ounces) 6,124 5,950 5,801 Total cash operating costs per ounce $ 162 $ 155 $ 152 Average price realized per ounce of gold sold $ 317 $ 334 $ 351 Average spot price of gold per ounce $ 271 $ 279$ 279 Reserves (proven and probable) (thousands of ounces) 82,272 79,300 78,049 BARRICK BARRICK ANNUAL REPORT 2001 Other Net debt to total capitalization(3) 2% 2% 1% Shares outstanding (millions) 536 536 534

1. All amounts prior to 2001 have been restated to reflect the merger with Homestake as a pooling-of-interests (see note 1 to notes to consolidated financial statements). Information for all years has been derived from audited financial statements, except as indicated. 2. Long-term debt excludes current portion of $9 million in 2001, $3 million in 2000 and $37 million in 1999. 3. Net debt to total capitalization is the ratio of debt less cash and short-term investments to debt plus shareholders’ equity. Committees oftheBoard Corporate Governance intervalsbetweenBoard meetings. during businessofdirection and BoardDirectors)ofmanagement the in reservedspecificallythe to lawby Directorsof (except powersthose BoardpowersExercisesthe the of all Mulroney,G.C.Wilkins)Oliphant,R. (P.B.MacNaughton, A.A. Munk, COMMITTEE EXECUTIVE relevantissuesCompany.reporting the to externalauditorsfinancial discussto the controlsystemswith meets and internalof adequacy the plan, audit CommitteereviewsalsoThe external the externalauditors.the and management with Analysis and Discussion Management’sstatementsand financial ResponsiblereviewingforCompany’s the C.W.D.Beck, (H.L. Birchall,P.A. Crossgrove) COMMITTEE AUDIT ordinarycourseBarrick’softhe outside matterssignificant other and financings significantinvestments,as well as and acquisitions,dispositions major All BoardDirectorsofthe toapproval. for plans business and presentingbudget strategicproposingforits and direction Company’sthe for day-to-day operations, Barrick’sresponsibleis management BOARDMANDATE circumstances.changing responsiveappropriateremainand to governancepractices theyensureto itsmonitorDirectorstoofcontinuing is Boardbusiness.The itsCompany and the proceduresappropriateareand to that Accordingly,havetheydevelopedsystems effectivecorporate governance. emphasize Barrick of management and Company,The BoardDirectorsofthe on the Board.the on vacanciesfill toBoardnominees the to recommendsshareholdersand the by Boardthe to election fornominees of slateBoard the recommendsthe to directors,as annually election for practices.considerscandidatesalso It corporategovernanceand policies Company’sthe plan. stockoption CommitteeadministersalsoThe Company.the of management remunerationdirectorsforsenior and Boardthe recommendsthe to and practicesreviewsand and policies Reviewsapprovesand compensation Rotman)J.L. P.A.MacNaughton,(A.A. Cr COMMITTEE GOVERNANCE COMPENSATIONCORPORATEAND Corporateand Compensation the and below.describedare Committee Audit The Committeesthesemandatesof The Committees.SafetyFinance and and Health Governance,Environmental, Occupational CorporateExecutive,and Compensation committees,fiveAudit, the comprisedof BoardDirectorsofestablishedThe has BOARDOPERATIONS industry.mining the companyin a of effectivefor governanceimportant is that backgroundbreadthexperienceof and Boardreflectsa the compositionof Company.unrelatedarethe to The directors,13 comprisedwhom ofoffive Barrick’sDirectorsBoardcurrentlyof is BOARDCONSTITUTION BoardDirectors.of approvalto business,subject arethe by In addition, the Committeethe reviewsaddition, In ossgrove, structure. equity and Programdebt and strategies,Sales Gold Premium ReviewsCompany’sthe investment G.C.Wilkins)Oliphant,R. Munk, A. (C.W.D.MacNaughton,Birchall, A.A. COMMITTEE FINANCE futureregulatoryissues.and current safetyperformance,and monitors and environmentalhealthoccupational and programs,and policiesoversees its safetyand healthoccupational and ReviewsCompany’sthe environmental Thompson)J.E.Cohen, M.A. (P.A.Crossgrove, C J.K. COMMITTEE HEALTHSAFETY AND ENVIRONMENTAL,OCCUPATIONAL Company’sInformationCircular. GovernancePracticesthe appearsin BoardDirectors.offull consideredarethe by Committeerecommendationsthe ofthe that factthe bybalancedCompany is the to ed CommitteeFinancerelat-are the of members the ofmajority Directors. a factthat The Boardoffull the attentionof the to brought ExecutiveCommitteethe subsequentlyare issues.significant with dealto notice short veryavailable on requiresmandatebe its to memberssince CompanyrelatedCommitteethe tobe to Executivethe ofmajority desirable the for unrelateddirectors. Safetyand comprisedCommitteeof is Environmental,the HealthOccupational unrelatedofmajoritydirectors. ofa Half GovernanceCommitteecomprisedofare A detailed StatementdetailedCorporateof A BoardDirectorsis ofThe it believesthat All actions approvedactions byAll arrington,

BARRICK ANNUAL REPORT 2001 CORPORATE GOVERNANCE AND COMMITTEES OF THE BOARD 93 BARRICK ANNUAL REPORT 2001 BOARD OF DIRECTORS 94 Board ofDirectors Barrick since 1988.since Barrick Directorofa been has He Finance.MinisterofDeputy including positions senior of number a yearsin 15 for CanadaGovernment of Mr.servedthe Cohen Blackwell& Brock Counsel,Cassels Toronto,Ontario O.C.COHEN, A. MARSHALL Board1996.sinceBarrick the of member a been has He 1996. of end the at assumed OperatingOfficer, he which Chief as role his to addition in 1999 MarchCompany in the of ViceChairman a Mr.Carringtonwasappointed CorporationGold Barrick OperatingOfficer,Chief and ViceChairman OntarioThornhill, CARRINGTONK. JOHN Company. the Boardofmembers original the of one being Barrick, with association Mr.long a had Birchallhas CorporateDirector Bahamas Nassau, D.BIRCHALL WILLIAM C. Board1984.sinceBarrick the on been has He Davies,WardBeck. & firm law the ofPartner Mr.foundingwasa Beck WescamChairman, Inc. HOWARDBECK,Q.C.L. Advisory Board.Advisory Company’sInternational the of Chairman is and 1993Board in Barrick the joined 1993.toHe 1984 fromCanadaMinister of Mr.Mulroneywas Prime Renault Ogilvy Partner,Senior Montreal,Quebec MULRONEY,P.C., LL.D. BRIAN HONOURABLE RIGHT THE Board1986.sincethe of member a been has He Barrick. of ViceChairman Mr.a is MacNaughton InvestmentCorporation President,Genstar Danville,California ANGUS A. M A. ANGUS 1993.since directorBarrick ofa been has companies.He mining of number involveda in Mr.Crossgrove been has CorporationInternational MasoniteChairman, Toronto,Ontario CROSSGROVEA. PETER AC NAUGHTON joined Barrick in 1987.in Barrick joined 1997.since Mr. Oliphant Boardthe on been has He Officer.Financial Chief and ExecutivePresidentVice 1999.wasPreviouslyhe March in BarrickOfficer of ExecutiveChief Presidentand Mr.wasappointedOliphant CorporationGold Barrick ExecutiveOfficer, Chief Presidentand Toronto,Ontario RANDALLOLIPHANT Corporation. TrizecHahnof Chairman and founder the also is He Corporation.Gold Barrick of Boardthe of Chairman and Mr.founder the is Munk CorporationGold Barrick Chairman, Toronto,Ontario O.C.MUNK, PETER servicecompany.and diversifiedmanufacturing OnexCorporation,of a Partner a is He 1996. in BoardDirectorsofthe of Mr.member a became Munk OnexCorporation VicePresident, Toronto,Ontario MUNK ANTHONY of the Board1991. sincethe of member a been has 1993.He Corporation)Septemberin (nowHorshamTrizecHahn at appointment his until BarrickOfficerof Financial Chief PresidentViceand Mr.wasExecutiveWilkins TrizecHahnCorporation ViceChairman, Toronto,Ontario GREGORYWILKINS C. Homestake.Officerof ExecutiveChief and Chairman Mr.time, wasThompson Company.Mining that to Prior Homestakemergerwith the ofcompletion the upon 2001 14,DecemberBoard on the to Mr.wasappointedThompson CorporationGold Barrick ViceChairman, Alamo,California THOMPSONJACK E. inception. its sincedirector Barrick ofa Mr.been has Rotman Roy-LCapitalCorporation ExecutiveOfficer, Chief and Chairman Toronto,Ontario ROTMAN,O.C.L. JOSEPH Officers International AdvisoryBoard and GeneralCounseland ExecutivePresidentVice PATRICKGARVERJ. OperatingOfficerChief and ViceChairman CARRINGTONK. JOHN ExecutiveOfficerChief Presidentand RANDALLOLIPHANT ViceChairman THOMPSONJACKE. ViceChairman The Cohen GroupCohen The ExecutiveOfficer,Chief and Chairman StatesUnited COHENS. SECRETARYWILLIAM MEMBERS Canadaof FormerMinisterPrime MULRONEYBRIAN HONOURABLE RIGHT THE CHAIRMAN expandsinternationally. Companythe as management BoardDirectorsof and provideBarrick’stoadvice Boardwasestablishedto AdvisoryInternational The M A. ANGUS Chairman MUNK PETER AC NAUGHTON CorporateCommunications President,Vice BORG VINCENT M. TreasurerVicePresidentand AL-JOUNDIAMMAR OfficerFinancial Chief VicePresidentand Senior SOKALSKYC. JAMIE Exploration VicePresident,Senior DAVIDSONJ. ALEXANDER CorporateDevelopment VicePresident,Senior BUTLER JOHN Development ExecutivePresident,Vice HILL R. ALAN Feld,LLP Strauss,Gump,& Hauer Akin, Counselto Of and LazardFreres Co.,LLC& Director,Managing Senior StatesUnited JORDAN,JR. E. VERNON Canadaof PowerCorporation ExecutiveCommittee,of Chairman Directorand Canada DESMARAIS,G.SR. PAULHONOURABLE AustralianOperations President,Vice GREGORYLANG A. Communications President,Vice JAMESFLEMING OrganizationalEffectiveness President,Vice FIFE GORDON ControllerVicePresidentand FALZONR. ANDRÉ StatesAffairsUnited Public President,Vice BROWNJ. MICHAEL Sal. Oppenheim Jr.Oppenheim Sal. Cie. & Partner,Senior Germany OTTOKARL PÖHL Limited Management SagittaAssetChairman, Kingdom United BAYSWATERKCMG LORDOF POWELL CorporationTrizecHahn Chairman, and CorporationGold Barrick Chairman, Canada MUNK PETER JOHN T.JOHN M GoodWorksInternational Chairman, StatesUnited YOUNGANDREW HONORABLE THE Negocios GeneralBancode Director,Managing Argentina ROHM E. JOSÉ and Secretaryand AssociateGeneralCounsel SYBILVEENMAN E. InvestorRelations President,Vice YOUNGS. RICHARD CounselTax VicePresidentand DAVIDW. WELLES OperationsAmerican North President,Vice ORR A. STEPHEN President,ViceEnvironment C DONOUGH

BARRICK ANNUAL REPORT 2001 OFFICERS AND INTERNATIONAL ADVISORY BOARD 95 BARRICK ANNUAL REPORT 2001 SHAREHOLDER INFORMATION 96 Shareholder Information TSE 100 TSE 1200 Global S&P S&P/TSE60 500 S&P LISTINGSINDEX 27,238 SHAREHOLDERS OF NUMBER ABX SYMBOLTICKER Swiss Paris London Toronto YorkNew STOCKEXCHANGES INTERNATIONALMAJOR FIVE ON TRADEDSHARES Fourth Quarter YorkNew StockExchange Fourth Quarter TorontoStockExchange First Third Second First Third Second ShareTrading Information *Includes shares issuable upon sharesissuable *Includes COMMON SHARESCOMMON 0.22US$ SHARE PER DIVIDEND 2001 Gold/SilverIndexPhiladelphia IndexGold Londonof FT S&P/TSEMaterialsCanadian MineralsPreciousIndex & Gold TSE Composite S&P/TSE Inc.) exchangeableInc.) shares. (HomestakeexchangeHCI Canadaof 536* Weightedaverage2001 – 2001 31,December Outstandingat SectorIndex iue 538* 536* Diluted Basic Share VolumeShare VolumeShare 2001 2001 388 428 112 105 100 109 108 118 90 74 (millions) (millions) 2000 2000 282 318 (millions) 82 88 79 81 50 72 59 89 US$17.59 C$27.48 17.95 28.25 28.59 29.65 17.98 19.37 2001 2001 ih Low High Low High NYSE US$ 15.95 US$ 25.45 C$ NYSE TSE 200131,December SHARES OF CLOSINGPRICE (millions) VOLUMETRADEDSHARES OF NYSE TSE US$19.75 C$25.25 17.26 24.12 25.95 28.10 18.38 20.00 2000 2000 US$13.70 C$21.10 2001 22.15 21.95 21.65 14.20 388 13.96 13.72 428 2001 2001 US$15.63 C$23.17 12.31 20.53 23.00 24.18 15.50 14.81 2000 2000 2000 282 318 Company at the Corporatethe CompanyOffice.at Secretaryrequestthe the ofto charge,writtenwithout upon availableshareholders,tomade be will report Commission.This Exchange and Securities StatesUnited the with filed is Formon Report 40-F Annual FORM40-F Company.the of position financial projectedand current the with combinedacquisitions,potential as well developmentas activities, operatingassets,exploration and Company’srequirementsthe of cash the on basedsemi-annually Directorsreviewspolicy dividend the BoardDirectors.ofBoard ofThe the determinedby is dividend anyof timing and amount The POLICYDIVIDEND $0.1115.Decemberand on 15 $0.11June – 2000on in was paid share$0.22ofper dividend cash A $0.1114.December and on 15 June $0.11– share$0.22on of per dividend cash Companya paidthe 2001, In PAYMENTSDIVIDEND Barrick or the Transferthe Agents.or Barrick Secretarydirectedthe oftobe address,ofshould inquiries change and cheques dividend matterstransfers,share as Department.Relations Company,Investorcontactthe the generalinformationon shares.concerningFortheir questionsinformation or Companyforcontactthe to Shareholderswelcomeare CONTACTSSHAREHOLDER Webwww.shareowner.casite: [email protected]: Fax:595-0400(416) 595-9600(416) Telephone: at: Association contactthe should interestedprogramholders this in investors.Canadian share-Barrick reinvestmentdividend program for its of part a be toselectedBarrick organizationretailofinvestors, has non-profiteducationala Association, ShareownersCanadian The PROGRAM REINVESTMENTDIVIDEND CorporateOffice. Investorfromthe at Relations availablearereport annual this FrenchversionsofSpanish and OTHERLANGUAGEREPORTS Forsuch informationon Toronto,Ontario FairmontRoyal York Hotel, Room,Canadian the in a.m. 10:00 Wednesday,2002at 8, May on held be Shareholderswill ofGeneralMeeting Annual The MEETING ANNUAL Webwww.mellon-investor.comsite: 1-800-589-9836 States:United the within Toll-free 329-8660(201) Telephone: JerseyPark,New07660 Ridgefield CenterOverpeck Road Challenger 85 InvestorMellon Services,L.L.C. Webwww.cibcmellon.comsite: [email protected]: Fax:643-5501(416) 1-800-387-0825 America: North throughoutToll-free 643-5500(416) Telephone: Toronto,2W9 M5C Ontario StreetAdelaidePostal Station P.O.Box7010 CompanyTrust Mellon CIBC REGISTRARSAND AGENTSTRANSFER

BARRICK ANNUAL REPORT 2001 SHAREHOLDER INFORMATION 97 BARRICK ANNUAL REPORT 2001 CORPORATE INFORMATION 98 Corporate Information Fax:(775) 377-3240 (775)Telephone: 377-2366 GeneralManager DoyleMike U.S.A.Nevada89045 MountainRound P.O. Box 480 Gold MountainRound Fax:(775) 738-7685 (775)Telephone: 738-8043 GeneralManager VicePresidentand StephenLang Elko,U.S.A.Nevada89803 29 Box P.O. Mine Meikle Betze-Postand Mine GoldstrikeProperty: America North OPERATIONSMINING Fax:861-2492(416) 861-9911 (416) Telephone: 2J3 Toronto,M5J Canada P.O.Box119 Street,Bay200 Suite 2700 TowerSouth RoyalPlaza Bank CorporationGold Barrick CORPORATEOFFICE Fax:(56-2)233-0188 (56-2)340-2022Telephone: Chile/Argentina Development,and VicePresident,Operations RaymondThrelkeld Santiago,Chile ProvidenciaII. Piso Av.ValdiviaPedrode 100 OperationsChilean AmericaSouth Fax:(705)567-6867 (705)567-9251Telephone: Manager Mine Grebenc Brian 3H7 P2N Canada Lake,OntarioKirkland 278 Box P.O. Holt-McDermottMine Fax:238-1050(807) 238-1100(807) Telephone: AreaGeneralManager PeterRowlandson 2E0 P0T Canada Marathon,Ontario P.O.500 Bag OperationsHemlo Fax:515-5241(604) 522-9877(604) Telephone: GeneralManager Biles Gary 2N0 V0J Canada Smithers,B.C. Way Airport 1 No. EskayCreek Fax:9322-5700(61-8) 9212-5777(61-8) Telephone: AustralianOperations President, Vice Lang Gregory Australia WA6000 Perth, Floor 10th StreetMill 2 AustralianOperations Australia Fax:(255-51) 123-180 (255-51)Telephone: 123-181 GeneralManager VicePresidentand RoyMeade Tanzania Salaam, es Dar P.O. Box 108 GardenAvenue Street/Robert Shaaban House,InternationalLevel 2 BulyanhuluMine AfricaEast Fax:(51-1)275-3733 (51-1)275-0600Telephone: GeneralManager VicePresidentand Gonzales Igor 33,Peru Lima GardeniasLas Urb. 3 159Delfines,PasajeLos Mine Pierina er Piso Webwww.barrick.comsite: [email protected]: 1-800-720-7415 States:United and Canada within number Toll-free [email protected]: Fax:861-0727(416) 307-7440(416) Telephone: InvestorOfficerRelations SandraGrabell [email protected]: Fax:861-0727(416) 307-7441(416) Telephone: Manager,Investor Relations KathySipos [email protected]: Fax:861-0727(416) 307-7431(416) Telephone: InvestorRelations President,Vice YoungRichardS. Contact: InvestorRelations Toronto,Canada PricewaterhouseCoopersLLP Auditors CORPORATEDATA N: Louise Taylor PRODUCTION: Lesia Olexandra, Jocelyn Sealy Bowne PRINT: Lesia Olexandra, PRODUCTION: N: Louise Taylor

FORWARD LOOKING STATEMENTS Certain statements included herein, including those regarding, production, realized gold prices and costs constitute “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known an d unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Barrick or of the gold mining industry to be materially different from future results, performance or achievements expressed or implied by those forward looking statements. These risks, uncertainties and other factors include, but are not limited to, changes in the worldwide price of gold or certain other commodities and currencies and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in Barrick’s most recent Annual Information Form and “Management’s Discussion and Analysis

CREATIVE AND PROJECT MANAGEMENT: Trilogy Integrated Investor Relations Inc. Investor DESIGN: Integrated MANAGEMENT: Trilogy AND PROJECT CREATIVE Egg Design ART Meredith MacKinlay, DIRECTIO of Financial and Operating Results” on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. You can contact us toll-free within Canada and the United States at 1-800-720-7415 e-mail us at [email protected] visit our investor relations website at www.barrick.com