Q4 2016 Real-Time Call Brief

Highlights

All of perspective investments whether external acquisitions or internal allocations for exploration expansion or other projects compete for capital. They must meet our stated target of 10% to 15% return on invested capital through the metal price cycle aligned with strategic goals, undergo rigorous risk assessments.

Our first priority was to generate free cash flow at a Gold price of $1000 per ounce.

In 2016, not only did we achieve that objective, but we generated a record level of annual free cash flow $1.51 billion to be exact.

In the year, that saw 8% increase in the Gold price.

We increased our free cash flow by 221%.

We continued the implantation of our best-in-class program across the portfolio reducing our all-in sustaining cost by 12% to $730 per ounce.

Full year Gold production of 5.52 million ounces at the high end of our guidance range, reflected strong operating performance.

Total CapEx of $1.1 billion in 2016 also came in below our guidance for the year.

Building on the success of 2015, when we reduced our debt by more than $3 billion, we reduced you debt by another $2 billion plus in 2016.

This brings our total debt to $7.9 billion, of which less than $200 million is due before 2019, and approximately $5 billion is due after 2032.

Reflecting this progress and our confidence in the business, we are increasing returns to our owners through a 50% in our quarterly dividend.

We generate free cash flow of a Gold price of $1,000 per ounce.

By the end of 2018, we intend to reduce our total debt to $5 billion and we'll be halfway there by the end of this year.

A considerable improvement in our injury frequency rate, achieving less in our history, and the 67% improvements since 2009.

In 2016, we did reduced the number recordable environmental instance by 50% compared to the previous year.

The guys on the ground working to that continual improvement philosophy all of which is driving us to a steady state fashion towards our aspirations of achieving a very sustainable sub $700 will all-in sustaining cost by 2019.

This business unit Cortez-Goldstrike William incorporates Turquoise Ridge and to be led by Bill MacNevin as its Chief Executive Officer with Curtis Cadwell as a General Manager Operations or Effective Chief Operating Officer. The aim of this is to secure at least a $100 ounce our combined all-in sustaining cost there on a consistent and sustainable basis.

Over the next three years on the basis of current plans, our gold productions reflected to be in the range of 4.6 million to 5.9 million ounces.

Beyond 2019, under the current plans, we expect to maintain annual gold production of least 4.5 million ounces.

In '17, we expect to produce 5.6 million to 5.9 million ounces of gold, at all-in sustaining cost of $7.20 to $7.70 per ounce.

An improvement overall previous 2017 guidance to 5 million to 5.95 million ounces at the all-in sustaining cost of $7.40 to $7.90.

Onto the CapEx guidance, in 2017, Minesite sustaining CapEx of $1.05 billion to $1.2 billion, is an increase year-on-year.

Compared to our initial guidance provided at the start of 2016, we have lowered the guidance for '17 and '18 by an average of $225 million in each year.

Project CapEx is expected to be $250 million to $300 million in '17.

Based on scoping work, the returns of the Lama project deteriorate if essential capital is much more than $1.5 billion.

We delivered earnings per share of $0.36 for the quarter and adjusted earnings per share of $0.22 taking the full year earnings per share to $0.70, a 133% increase from the previous year.

Q4, gold production was 1.52 million ounces our highest quarterly production for the year.

Gold cost of sales of $784 ounce after the quarter and that delivered an AISC $732 ounce.

Our Q4, copper production was 101 million pounds at copper cost of sales of $1.45 per pound and all-in sustaining cost of $2.04 per pound.

Operating cash flow for the quarter came in at $711 million, which delivered free cash flow defined as operating cash flow less CapEx of $385 million.

So for the year as a whole, Barrick generated $2.6 billion of operating cash flow, a 21% increase year-on-year.

So tracking capital expenditures from that number Barrick delivered $1.5 billion of free cash flow.

The first of course is the gold price, this is it's largest contributor free cash flow as prices averaged 8% higher year-on-year.

This is slightly offset by realized copper prices averaging 3% lower year-on-year.

The second with capital, and with disciplined approach as well as lower stripping at Veladero given its difficult year to a combination of covenants savings in deferral to be a true reduction in 2016 at $327 million.

Cash costs operating costs delivering $251 million in cash flow improvement due to improved sales mix as we get more production especially with the best in class improvement from our higher quality low cost site.

Volumes adjusting for the divested sites were up 114,000 ounces year-on-year.

We ended the year with $7.9 billion of debt.

In the fourth quarter, we've paid down just under $0.6 billion of debt, to take our total debt reduction to just over $2 billion for the year.

This has led to an annualized interest saving of $100 million, which takes the total savings to $235 million over the last two years.

Our goal is to reduce our total debt to $5 billion by the end of 2018, and we intend to do half about this year.

We now have less than $200 million of debt due before 2019, $2.4 billion in cash, and a $4 billion undrawn credit facility.

At the current spot price, we expect our tax rate to be around 45%.

Our exploration and valuation cost are increasing to a $185 million to $225 million.

Project expenses are also stepping up in 2017 to $230 million to $270 million, primarily resulting from the prefeasibility study, as well as water management cost associated with requirement of the temporary closure plan of the Pascua-Lama.

Our G&A is expected to increase in 2017, $40 million of the $285 million is stock-based compensation.

$45 million relates to CoS and $200 million up from a $163 million in 2016 in corporate administration.

Cortez continued to deliver outstanding results in the fourth quarter, with production of 310,000 ounces at cost of sales of $846 per ounce, and in all-in sustaining cost of $517.

We saw 10% increase in underground production, and a 20% increase in mill throughput.

We expect 2017 production to be lower than 2016, and 910,000 to 950,000 ounces, at high all-in sustaining cost of $910 to $992 per ounce.

Pueblo Viejo have finished the year strongly, with an excellent fourth quarter, producing a 189,000 ounces, at an all-in sustaining cost of $443 per ounce.

Gold recovery up 4% from 87% to 91%.

And increased autoclave throughput up 4%.

Silver recoveries in particular continued to improve, up from 67% in the third quarter to 79% in quarter four.

This is well up on the 53% we had in the first half of 2016.

In addition to realizing improved throughput and recovery in quarter four, our business improvement programs continue to drive value creation in all operational areas. This has allowed us to reduce the impact of low head grade in 2017 and set out guidance range at 625,000 to 650,000 ounces, at an all-in sustaining cost of $530 to $560 per ounce.

Veladero 2016; In Q2, severe winter-related resulted in 42 days of loss production.

For 2017, we expect increased production of 770,000 to 830,000 ounces at all-in sustaining cost of $840 to $940 per ounce.

Lagunas Norte; we expect the on sustaining cost to be in the range of $560 to $620 per ounce.

Turquoise Ridge; the forecast for 2017, has said that 260,000 to 280,000 ounces, on a 75% basis, and that's an improvement over 2016, at an all-in sustaining cost of $650 to $730 per ounce.

Copper production for 2016 decreased 96 million pounds, or 19% compared to 2015, due to lower production contribution from Zaldivar following the investment of 50% of initiative there.

Excluding the impact this divestiture, copper production increased by 7 million ounces, primarily related to the achievement of commercial production Jabal Sayid.

Although our reserves declined again in 2016, about 60% of that production was replaced by new reserves through drilling and cost improvements at operating side.

We increased our reserves process to $1,500 per ounce to show place our focus, when the Gold price increases.

Approximately 5.3 million ounces were added through drilling, including 2.4 million ounces Veladero; 1.3 million ounces Hemlo and 1.3 million ounces were outsource.