Mali Impact of mining on the Malian economy challenges and opportunities - PDAC virtual presentation
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Mali Impact of mining on the Malian economy…challenges and opportunities PDAC virtual presentation 1
Cautionary statement on forward looking information Certain information contained in this presentation, including any information as to Barrick’s strategy, plans, or future financial or operating performance, constitutes “forward looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “planned”, “future”, “on track”, “continue”, “preliminary”, “further”, “potential”, “opportunities”, “strategy”, “in progress”, “ongoing”, “to be”, “target”, “a look at”, and “will” and similar expressions identify forward-looking statements. In particular, this presentation contains forward-looking statements including, without limitation, with respect to: forward-looking production guidance; future investments in community projects and disease prevention programs; the anticipated benefits of the sale of the Morila mine; Loulo- Gounkoto’s current projects, including the potential extensions to the life of mine and solar project ramp up, and the expected benefits of those projects; ongoing exploration work and potential mineralization; mineral reserve and mineral resource replacement at the Loulo-Gounkoto complex; construction and development of the Gounkoto underground project, including expected first production; development and training of personnel; expected operational improvements due to improved monitoring and analysis; opportunities and challenges for the growth of the Loulo-Gounkoto complex and the growth of Barrick’s partnership with the Malian government and its people. Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this presentation in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; risks associated with projects in the early stages of evaluation, and for which additional engineering and other analysis is required; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals; uncertainty whether some or all of targeted investments and projects will meet the Company’s capital allocation objectives and internal hurdle rate; changes in national and local government legislation, taxation, controls or regulations and/ or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in Mali and other jurisdictions in which the Company or its affiliates do or may carry on business in the future; damage to the Company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company’s handling of environmental matters or dealings with community groups, whether true or not; risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic; litigation and legal and administrative proceedings; employee relations including loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; and availability and increased costs associated with mining inputs and labor. Barrick also cautions that its guidance may be impacted by the unprecedented business and social disruption caused by the spread of Covid-19. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this presentation are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this presentation. Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
24 years of commitment to West Africa…
2012 2013 2014 2015 2016 2017 2019 2020 2020
Record Loulo Complex Production +1.2Moz +1.25Moz Gounkoto Randgold – Gounkoto Loulo pays
production record exceeds 1Moz group group super pit Barrick UG maiden
Morila mine life production LTIFRi down production production starts merger Starts dividend
extended 18%
2011
Gounkoto 2010 2009 2008 2007 2006 2005
first gold Tongon first gold Gounkoto Tongon stake at Massawa Loulo UG Loulo UG
Gara UG starts discovery 89.7% discovery mine starts feasibility
Gounkoto mine build Acquired Kibali Market Cap at $3b approved
2011 starts stake at 45% Join FTSE 100
Record
Production
Market cap at
$11b
Join NASDAQ
100
1995 1996 1997 2000 2001 2003 2004 2005
Randgold RRL acquired Yalea discovery Morila Syama Syama Loulo construction Loulo
incorporated BHP Mali assets Morila pours on care and sold to starts pours first
including Syama discovery first gold maintenance Resolute gold
IPO raises $83m
i Loss time injury frequency rate (LTIFR) is a ratio calculated as follows: number of loss time injuries x 1,000,000 hours divided by the total number of hours worked.
Barrick Mines in Mali Gold Production…
900
Barrick Mines in Mali Gold Production (100%) (Koz)
Loulo-Gounkoto Complex
800
Morila
700
600
500
503
346 580 639 730 715
KOunces
400 317 707 660
680
630
300
200
239 249
100 203
142 110
6 54 70 75 68 37
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Mali gold mining industry impact…
Revenue generated from gold mining represents 70% of the total export of Mali over the last ten years
Mali Gold Export vs. Total Export
2,500
2,000
Billion FCFA
1,500
1,000
500
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Gold Export Total Export
Source: BCEAO
Loulo–Gounkoto…
development of local skills
Total Employees: 5,481 (3% state employees)
Nationals: 5,250 (96%) Contractors
Expats: 231 (4%) Expats
Total Salary: 5% state salary 102 (2%)
Mine
Mine
Nationals Permanent
Expats
1,626 (30%)
129 (2%)
Contractors Temporary
Nationals Nationals
3,076 (56%) 548 (10%)
*Totals may not add due to rounding *All the figures illustrated above are as at 31 December 2020
Barrick’s contribution to Mali economy...
Our three mines have also been responsible for between 5% and 10% of the Malian GDP over the last ten
years
Barrick/Randgold operations have contributed approximately US$ 7.7 billion to the Malian economy in the form
of taxes, royalties, salaries and payments to local suppliers in the last 24 years
% Contribution to Malian GDPi Loulo
10%
US$ 4.1 Bn
9% Gounkoto
8% US$ 1.3 Bn
7%
Morila 6%
Gounkoto 5%
Loulo 4%
3%
2% Morila
1% US$ 2.3 Bn
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: World Bank and Barrick Gold Corporation i The sale of our interest in Morila was completed in November 2020
Loulo-Gounkoto CSRiii - governance and stakeholder
engagement…>$13m invested; $29.6m patente paidi
Potable water
61 boreholes and 7 water supply systems constructed
Regular water quality analysis with annual feedback sessions held in villages
Establishment of water management committees in villages
Health
5 health centres built in the communities
Fighting malaria and Covid-19 in local communities
Program implemented for the fight against HIV - increase testing of volunteers
Food Security
48 agribusiness graduates commenced farming
5 dams built
Annual seed and fertilizer donation
Education
78 local students benefiting from the excellence bursary program
20 schools built
School enrolment: >5,000 students compared to 500 before the mine opened
85m FCFA to improve education with World Education International (WEI)
“One Village - One School” target reached around our operation
Economic development
6 women multifunctional centres built
2 food grinding mills
5 new community GIEsii enrolled
Community road maintenance
$951,720 of credit granted by Nyesigiso
i Regional taxes paid ii Groupement d’Interet Economique III On a 100% basis
Agribusiness Local Business Support…
License to operate
$375.5 million spent on local contractors and suppliers
in 2020 (services rendered, goods and fuel supply)
Joint venture with local partner on limestone project to
increase local content (SI-Mining)
Transport consortium implemented to incorporate
greater number of Malian transport partners, with direct
and positive impact on our License to Operate
Accelerator program launched to build capacity and
improve local suppliers management system and
service quality
12 companies selected in the first cohort for 13-month
program
Agribusiness Sakola
$2.2m spent to develop agricultural entrepreneurship
48 entrepreneurs established and 30 farms created –
Keep producing
352 youth trained – Program to train 450 more with FIERi
I Formation Profesionnelle, Insertion et appui a l'entrepreneriat des jeunes ruraux
Morila Sale Concluded…
TSF reclamation
188,672oz produced by reclaiming the TSF materials
Reclamation treatment methodology
Environmental benefit
Morila sold to Firefinch to breathe new life
The sale was concluded on 10 November 2020
The transaction will benefit the mine’s Malian stakeholders
(Employees, Community and Government) by giving
Firefinch the opportunity to extend its life by accessing
satellite resources and adapting the infrastructure
Barrick was the operator of the mine and the sale is in line
with its policy of selling non-core assets to concentrate on
Tier One minesi
Barrick remains committed to its partnership with Mali,
where it owns and operates the Tier One Loulo-Gounkoto
gold complex
The Government retained its 20% stake
i A Tier One mine is an asset with a reserve potential to deliver a minimum 10-year life, annual production of at least 500,000 ounces of gold and total cash costs per ounce over the mine life that are in the lower half of the industry cost curve.Opportunities and Challenges
Opportunities Challenges
Growth Covid-19 related issues
Super Pit for Yalea South Upper Saprolite Compliance reinforcement
Prefeasibility study on a new potential Testing capacity improved with the purchase of a
underground mine (Loulo 3) planned for 2021 PCR machine
Illegal Mining
Power Efficiency
Illegal mining has a significant impact on the
Evaluate the feasibility of adding energy storage environment, including the Faleme river
to the microgrid
Changes in Mining Law/Anti-mining
Gold Recovery Efficiency
Evaluate the acquisition of an owner-operated
Oxygen Production System to decrease contractor
costsTechnical Information The scientific and technical information contained in this presentation has been reviewed and approved by Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral Resources Manager, Africa and Middle East, a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
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