Abacus Global Management, Inc. Annual Report 1998

FY1998 Annual Report · Abacus Global Management, Inc.
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Barrick

B a r r i c k   G o l d   C o r p o r a t i o n

A n n u a l   R e p o r t

 
 
 
 
Net earnings 

per share
increased 13%

Record operating 

cash flow of
$539 million

Cash operating

costs declined
12% to $160
per ounce

Gold production

increased to
3.2 million
ounces

Gold reserves

increased to
51.5 million
ounces

PERFORM ANCE HIGHLIGHTS

F I N A N C I A L   H I G H L I G H T S
(millions of US dollars, except per share data)

Revenue from gold sales
Net income (loss) for the year:

Before provision
After provision
Operating cash ﬂow
Cash
Shareholders’ equity

Net income (loss) per share (fully diluted):

Before provision

After provision

Operating cash ﬂow per share
Dividends per share

O P E R A T I N G   H I G H L I G H T S

Gold production (thousands of ounces)

Cash operating costs per ounce

G O L D   R E S E R V E S   A N D   M I N E R A L I Z A T I O N
(thousands of ounces)

Reserves: proven and probable at 

$325 per ounce (1997 – $350 per ounce)

Gold mineralized material

1998

1997 % Change

$ 1,287

$ 1,284

301
301
539
416
3,592

+15%

+15%

262
(123)
470
292
3,324

$   0.79

$ 0.70

+13%

0.79

1.43
0.18

(0.33)

1.26
0.16

3,205

3,048

$  160

$

182

+13%
+13%

+5%
–12%

51,456

16,789

50,318

20,206

C O R P O R A T E   P R O F I L E

Barrick  Gold  Corporation  is  a  leading  international  gold  producer  with  ﬁve

low-cost  mines  in  North  and  South  America. The  Company’s  shares  trade

under the symbol ABX on the Toronto, Montreal, New York, London and Swiss

stock exchanges and the Paris Bourse. Barrick entered the gold business in 1983.

T A B L E   O F   C O N T E N T S

A Word to Our Shareholders

Objectives and Results

Operations Overview

8

14

16

Exploration and Development 24

Social, Environmental and 
Employee Responsibilities

Management’s 
Discussion and Analysis 
of Financial Results

Financial Results

26

28

41

Reserve, Operating and 
Financial Information 
by Mine

Shareholder Information

Board of Directors 
and Ofﬁcers

58

64

66

All dollar amounts are in United States dollars, unless otherwise indicated.
All 1999 ﬁgures are estimates.

WE ARE 

Barrick

Barrick Gold Corporation entered a new

era  of growth  in 1998, as  measured  by

record  levels  of earnings  and  cash  ﬂow.

And we did it as a team. Our operating

personnel produced more gold at lower

costs than ever before at our ﬁve mines

in North and South America. Our ﬁnan-

cial  managers  generated  exceptional 

revenues  with  our  Premium  Gold  Sales

Program. We have the talented

people, the  low-cost  quality  asset

base, the  ﬁnancial  strengths  and

the strategies to achieve our

future goals.

Luis M. Elu,Chief Refiner, Goldstrike

B A R R I C K   G O L D   C O R P O R A T I O N

WE ARE 

profitable

1998 was Barrick’s best year ever, even though gold prices reached their lowest level in two

decades. Net income surpassed $300 million for the first time in the Company’s history and

operating costs fell to a new low, continuing Barrick’s record as the most profitable and one

of the lowest-cost gold producers in the world. These factors, combined with its Premium

Gold Sales Program, meant that Barrick realized six times more profit per ounce than its peers.

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P R O F I T   P E R   O U N C E
P R O D U C E D
O F

G O L D

M EIK LE MINE This high-grade Nevada mine has

consistently surpassed all profit targets since 

it began operations two years ago. Meikle’s 1998

production reached 850,000 ounces of gold, 

a 50% increase from the year before, while cash

operating costs declined 25% to $77 per 

ounce. For 1999, Meikle is expected to increase

production 18% to 1 million ounces of gold, 

at a cash operating cost of $75 per ounce.

Steve Long, 
Mine Superintendent (l.)

Richard Quesnel,
Mine Manager (r.)

3

B A R R I C K   G O L D   C O R P O R A T I O N

WE ARE 

growing

Barrick  defines  growth  in  terms  of  rising  earnings  and  cash  flow  per  share,  achieved

through a focus on increasing low-cost production. Production is expected to rise from

3.2 million ounces of gold in 1998 to 3.6 million ounces in 1999. At the same time, cash

operating  costs  should  decline  from  $160  to  $125  per  ounce.  The  result:  earnings  are

expected to rise 10% and cash flow 30% to $700 million in 1999.

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I N   C A S H

F L O W

PIERINA MINE Completed in record time –

just 31 months from date of discovery – 

the Pierina Mine in Peru entered production 

in November 1998. Production is expected 

to total 835,000 ounces of gold in 1999 at $45

per ounce, making it the lowest-cost gold 

mine in the world.

Américo Villafuerte, 
Mine Superintendent (l.)

Milton Mogollón, 
Communications (r.)

5

B A R R I C K   G O L D   C O R P O R A T I O N

WE ARE 

strategic

Barrick has become the most valuable gold company in the world through sound strategies.

And they will continue to guide the Company in its new era of growth. Barrick has the aggressive

operating  approach  to  maximize  the  potential  of  its  high-quality  reserve  base,  the  cash

flow to develop new projects, and the financial strength to make selective acquisitions, all

of which will generate superior performance for its shareholders into the new millennium.

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O U N C E S   I N

R E S E R V E S

PASCUA A key part of Barrick’s future growth 

in earnings and cash flow, the Pascua Project 

in Chile and Argentina has total reserves 

and resources of 20 million ounces of gold and

525 million ounces of silver. When it enters 

production in 2002, Pascua is expected to pro-

duce 675,000 ounces of gold and 20 million

ounces of silver annually at an initial cash

operating cost of $125 per ounce of gold.

Javier Vega, 
Exploration Geologist (l.)

Bob Leonardson, 
Chief Geologist (r.)

7

B A R R I C K   G O L D   C O R P O R A T I O N

OUR 

commitment

A Word to Our Shareholders

A   Y E A R   O F   A C H I E V E M E N T . . .

For Barrick, 1998 was a remarkable year – we set new records for

ﬁnancial performance and low-cost production. In the face of the low-

est gold prices in two decades, we excelled – meeting or surpassing our

objectives. And just as important, we set the stage for sustained growth

in the future with the opening of our new Pierina Mine in Peru, and

with exploration results that conﬁrmed the vast potential of our Pascua

Property in Chile and Argentina.

Our 1998 performance demonstrated once again that Barrick

brings unparalleled strengths to the gold business: proven management

ability, high-quality assets and ﬁnancial resources. Barrick has the 

right strategies in place to continue outperforming its peers, whether

the price of gold is rising or falling.

When we founded this Company in 1983, we set a course from

which we have not deviated: we are, and will remain, a pure gold com-

pany. We also decided to become the premier gold company for

investors, as measured by shareholder value, not by production levels

alone. We focus on being the industry’s best creators of share value.

Rising earnings and cash ﬂow, in these times of lackluster gold prices,

are the best vindication possible of the innovative ﬁnancial strategies

and operating standards that have always set us apart from our peers.

Today, as a result, we are in a unique position in the gold industry.

We have begun a new era of growth in earnings and cash ﬂow that will

be driven by rising, low-cost production. Our operations have stepped

up their efforts to improve productivity and reduce costs, with gratify-

ing results. And we continue to more than replace our production with

new, high-quality reserves, year after year.

8

P E T E R   M U N K
Chairman 

B A R R I C K   G O L D   C O R P O R A T I O N

. . . I N   T H E   M E A S U R E S   T H A T   M A T T E R   M O S T

Our objective is proﬁtable growth, not just any growth, and we 

met this goal decisively in 1998. Barrick made more money last year – 

$301 million – than the rest of the North American gold industry 

combined. Meanwhile, operating cash ﬂow reached a new level of

$539 million, the highest in the industry.

This ﬁnancial performance was underpinned by production 

of 3.2 million ounces of gold at cash operating costs of $160 an ounce,

both records for the Company. In 1999, we will do even better, with

production expected to reach 3.6 million ounces at $125 per ounce,

making us the world’s lowest-cost gold producer.

. . . I N   O P E R A T I N G   E X C E L L E N C E

Achieving results like these requires a disciplined operating approach 

at our ﬁve mines in North and South America. Our ﬂagship Goldstrike

Property, with its two world-class mines, open pit Betze-Post and

underground Meikle, enjoyed its best year ever in 1998 in terms of pro-

duction and costs. This reﬂected an outstanding performance at

Meikle, which keeps surpassing every goal we set for it.

We are excited about the future of Goldstrike, where drill results

during 1998 conﬁrmed excellent potential in a mile-long corridor 

of land, extending from the Meikle Mine south through the Grifﬁn and

Rodeo deposits. And as Goldstrike’s production potential unfolds,

we are enhancing our processing capabilities. Construction began during

the year on a new $330-million roaster to provide extra processing

ﬂexibility and lower costs.

More recently, in February 1999, we further improved the out-

look for Goldstrike – an Agreement in Principle was signed with

Newmont Mining Corporation for a mutually beneﬁcial exchange of

assets on and around the Property. This transaction will allow us 

to develop Goldstrike to its full potential.

We also beneﬁted from an excellent performance in 1998 by 

our Canadian mines, Holt-McDermott in Ontario and Bousquet in

Quebec. They produced more gold at lower cost than planned as 

a result of productivity improvements.

9

R A N D A L L   O L I P H A N T
President and 
Chief Executive Ofﬁcer

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N E T   I N C O M E  
P E R   S H A R E
(dollars)
*before provision

B A R R I C K   G O L D   C O R P O R A T I O N

. . . I N   G R O W T H   T H R O U G H   D E V E L O P M E N T   A N D   E X P L O R A T I O N

Barrick demonstrated once again in 1998 that we have the ﬁnancial

resources and technical capabilities to develop new assets with speed

and efﬁciency.

We completed the development of the Pierina Mine in November,

under budget and in just over two years from the day we acquired 

the Property. This record-fast development is a tribute to the expertise

and dedication of our combined North American and Peruvian 

development team.

At the Pascua Project, on the Chile/Argentina border, our explo-

ration crews expanded reserves and resources to 20 million ounces 

of gold and 525 million ounces of silver. We believe that Pascua will

become a major contributor to our proﬁtable growth and expect to

make a ﬁnal decision on development later this year.

We are proving that we can continue to increase reserves in the face

of growing production levels. Look at our record. Last year, exploration

success, especially at Pascua and at Goldstrike, increased our reserves to

51.5 million ounces, even after we lowered the gold price assumption

to $325 from $350 per ounce. Over the past ﬁve years we have increased

our reserves by 37%, consistent with the previous ﬁve years.

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. . . I N   S T R E N G T H E N E D   F I N A N C I A L   R E S O U R C E S

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O P E R A T I N G
C A S H F L O W  
P E R   S H A R E
(dollars)

Beyond our operating and exploration activities, there is a third element

to our success: our Premium Gold Sales Program. As the name 

suggests, Barrick’s program is unique. The fact is that no other gold

producer can match the quality of our reserves and the strength of

our balance sheet. As a result, our program, with its ﬂexible terms and

long lines, has no counterpart in the industry for its revenue gener-

ating power. We win both ways: we can take full advantage of increases

in the gold price, and conversely, protect our shareholders against a

falling gold price.

Barrick remains the only gold company with an “A” credit rating.

We have virtually no net debt and no debt payments due until 2007.

The Company has nearly $2 billion in cash and debt facilities, over and

above the highest operating cash ﬂow in the industry, to develop new

projects or ﬁnance acquisitions.

1 0

B A R R I C K   G O L D   C O R P O R A T I O N

I T   T A K E S   A   T E A M

The success of 1998 is a tribute to the caliber of our committed team 

of employees, whose efforts lie behind every success that we achieve.

From day one, Barrick’s employees have been part of a work environ-

ment characterized by incisive decision-making, mutual trust,

and pooled strengths that more than anything deﬁne the Barrick way.

Late last year, the man most responsible for creating this excep-

tional culture at Barrick passed on. Former President Bob Smith was a

dear friend and colleague who helped deﬁne the very soul of Barrick.

He left a legacy that can best be honored by continuing the values he

stood for: professionalism, compassion and trust.

Barrick’s executive team is exceptionally well qualiﬁed to both

continue and build on Bob Smith’s legacy. On March 1 of this year,

Randall Oliphant was appointed President and Chief Executive Ofﬁcer.

Formerly Chief Financial Ofﬁcer, Randall brings business acumen,

experience, and dynamism to the job of leading Barrick in a new era 

of growth. He replaced Paul Melnuk, who resigned the position for

personal reasons in February 1999. We thank Paul for his contribution

and wish him future success. Chief Operating Ofﬁcer John Carrington

also became Vice Chairman of the Company, reﬂecting his outstanding

contribution to Barrick’s record performance. Finally, Jamie Sokalsky

became Chief Financial Ofﬁcer after a successful tenure as Treasurer.

T H E   O U T L O O K

Our new era of growth will be remarkable for its ﬁnancial results.

They will be driven by four key activities:

Our focus on growing low-cost production – In 1999 we expect 

to set new milestones for production and costs.

Our Premium Gold Sales Program – With 11.5 million ounces

in the program at the end of 1998, Barrick has a locked-in minimum

realized price of $385 per ounce over the next three years.

Our exploration programs and development projects – We will

continue our strategy of exploring on the major gold belts where we have

infrastructure and land positions. Highly prospective areas include 

the Pascua Project, especially on the Argentinean side of the border, and

the underground along the Meikle corridor at Goldstrike.

1 1

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G O L D   P R O D U C T I O N
(millions of ounces)

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C A S H   O P E R A T I N G  
C O S T S
(dollars per ounce)

B A R R I C K   G O L D   C O R P O R A T I O N

Our selective acquisitions – We are only interested in the acqui-

sition of high-quality assets that are accretive to earnings and cash ﬂow

per share. An example is our proposed purchase of Sutton Resources

“The success of 1998

Ltd., primarily for its gold property in Tanzania. We believe that this

is a tribute to the

caliber of our com-

mitted team of 

employees, whose 

efforts lie behind 

every success that 

we achieve. From 

day one, Barrick’s 

employees have 

been part of a work 

environment char-

acterized by incisive

decision-making, 

mutual trust, and 

pooled strengths that

more than anything

define the 

Barrick way.”

property holds outstanding potential to contribute long-term value 

to Barrick. We search for acquisitions whose value can be enhanced

by the expertise and experience of Barrick’s management team.

At Barrick, we look forward to the future with conﬁdence. Our

strategy has never been to wait passively for gold price improvements.

Whether the price remains at current levels for months or years, our

ability to achieve predictable, proﬁtable growth will remain intact. At

the same time, we stand to gain from a rising gold price to a greater

degree than our peers by virtue of our ability to consistently realize pre-

miums on our gold sales. While the chances of an imminent recovery 

in the gold price are uncertain, market factors could be aligning in gold’s

favor. The supply/demand fundamentals are still very positive for 

gold. As Asian economic growth gradually recovers, it could lead to

even greater demand. Finally, the cloud of uncertainty regarding 

central bank sales has largely been dispelled by the establishment of

the European Central Bank, which has conﬁrmed that gold has an

important reserve role to play. Just as signiﬁcant, a greater transparency

in the Central Bank market has replaced bearish rumor-mongering

with concrete factual information.

Whatever the price of gold, we have the quality, low-cost ounces,

as well as the ﬁnancial, technical and managerial strengths to reach 

our growth objectives. In 1999 and beyond, Barrick expects to remain

the lowest-cost and the most proﬁtable gold producer in the world.

Peter Munk (signed)
Chairman

Randall Oliphant (signed)
President and Chief Executive Ofﬁcer

March 3, 1999

1 2

A   C E L E B R A T I O N   O F   L I F E

Robert M. Smith

1932 ~ 1998

Friend, colleague and builder, Bob Smith epitomized the best attributes of leader-

ship. His  quiet  fortitude  and  rock-solid  integrity  were  an  inspiration  to  all  who

knew him. His ability to motivate employees was legendary. His effect on Barrick

was  indelible. ○ When  Barrick’s  former  President  passed  away  on

“His trust made you 

October 27, 1998, the sense of appreciation for his life extended across

feel worthy of trust. 

a remarkable diversity of people, from his closest

It was empowering.”

family  members, to  the  miners  he  was  most  at

home  with, to  the  international  mining  commu-

nity. Founding Chairman Peter Munk gave Bob praise that rang

so true: “Bob Smith was a giant of a human being and a kind of

leader that I have never had the privilege of encountering before

and I don’t think ever will again.” Bob’s legacy will be the foun-

dation  of our  future  success. He  created  a  team  that  excels  not

only  in  expertise  but  also  in  the  human  qualities  of trust  and 

Bob Smith, left and Peter Munk visiting the
Goldstrike Property.

respect. ○ As President of Barrick from 1987 to 1996, Bob pro-

vided the leadership that translated Peter Munk’s vision into reality. Together they

led  Barrick’s  growth  into  the  most  valuable  gold  company  in  the  world. As Vice

Chairman after 1996, Bob continued to provide unerring guidance. ○ Bob’s pro-

fessional  achievements  earned  him  the  industry’s  highest  honor  in

1999: posthumous induction into the Canadian Mining Hall of Fame.

“Bob created a legacy

His  contribution  to  Barrick  and  to  mining  at  large  is  an  enduring

that lives on.”

one, surpassed only by his legacy of friendship and wise counsel for

the beneﬁt of others.

1 3

B A R R I C K   G O L D   C O R P O R A T I O N

1998 OBJECTIVES 

98

P R O D U C T I O N

○ Produce 3.05 million ounces in 1998, including

1998 RESULTS

○ Production increased to a new high of 

765,000 ounces from Meikle.

3.2 million ounces, with Meikle producing nearly

850,000 ounces.

○ All operations reported higher production than the

prior year, driven by productivity improvements.

C A S H   C O S T S

○ Lower cash costs to $170 per ounce in 1998 with

○ Cash costs declined to $160 per ounce, the lowest

Meikle producing at $90 per ounce; and

level in Company history.

○ Develop Pierina to produce at $50 per ounce.

○ All operations reported lower cash costs, 

including Meikle at $77 per ounce and Pierina 

at $48 per ounce.

E A R N I N G S   A N D   C A S H   F L O W

○ Maintain earnings at a level similar to the prior year,

○ Earnings increased to $301 million, the highest

in the $260 million range; and

level ever recorded by the Company, as cash costs

○ Maintain operating cash ﬂow at $470 million, 

declined to their lowest level.

consistent with the year before.

○ Operating cash ﬂow rose to $539 million, beneﬁting

from strong earnings.

D E V E L O P M E N T

○ Build Pierina on time and on budget; and

○ Pierina completed on time and under budget in

○ Expand reserves at Pascua and continue with 

November, contributing 57,000 ounces in 1998.

engineering work.

○ Pascua reserves increased 25% to 14 million

ounces; engineering work lowered estimated cash

costs to $125 per ounce in the ﬁrst ﬁve years 

and $150 per ounce over the life of the mine.

1 4

B A R R I C K   G O L D   C O R P O R A T I O N

991999 OBJECTIVES

P R O D U C T I O N

Produce 3.6 million ounces, a 13% increase over 1998, including 

1 million ounces at Meikle and 835,000 ounces at Pierina.*

C A S H   C O S T S

Lower cash costs 22% to $125 per ounce, with Meikle producing at 

$75 per ounce and Pierina at $45 per ounce.*

E A R N I N G S   A N D   C A S H   F L O W

Increase earnings 10% and operating cash flow 30% by virtue of higher

production and lower cash costs.

D E V E L O P M E N T

Complete engineering at Pascua, with a priority of reducing

the construction cost from the current $950 million and make 

a development decision. 

Continue exploration and engineering of the Goldstrike underground.

*Although the 1997 operating plan envisioned production of 3.5 million ounces at $150 per ounce in 1999, those targets were 
revised after better-than-planned results in 1998.

1 5

B A R R I C K   G O L D   C O R P O R A T I O N  

OPERATION S

overview

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PRINCIPA L PROPERTIES

• Goldstrike Property
• Pierina Property
• Pascua Project
• Canadian Properties

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CASH OPERATING COSTS

PER OUNCE 

Barrick operations
achieved a 12% decline in
cash operating costs in
1998, as part of a continual
effort to mine more 
gold, more efﬁciently. In
1999, cash operating costs
are expected to reach a
new low of $125 per ounce,
with the Pierina and
Meikle Mines producing
at an average cost of
$65 an ounce.

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C A S H   O P E R A T I N G   C O S T S
(dollars per ounce)

1 6

GOLD PRODUCTION 

Gold production increased
5% to 3.2 million ounces
in 1998. The key contri-
butor was the Goldstrike
Property, home of the
Betze-Post and Meikle
mines. Meikle production
rose nearly 50% to 
847,313 ounces. Production
began in November at 
the Pierina Mine, which is
expected to contribute
835,000 ounces in 1999.

1999 PRODUCTION  

Another record year 
is anticipated with gold 
production reaching 
3.6 million ounces, a 13%
increase from 1998.
Growth will be driven by
the Pierina and Meikle
mines, which are expected
to produce a total of
more than 1.8 million
low-cost ounces.

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(cid:51)(cid:46)(cid:49)

(cid:51)(cid:46)(cid:48)

(cid:50)(cid:46)(cid:48)(cid:32)(cid:45)

(cid:57)(cid:54)

(cid:57)(cid:55)

(cid:57)(cid:56)

(cid:57)(cid:57)(cid:69)

(cid:50)(cid:48)(cid:48)(cid:48)(cid:69)

G O L D   P R O D U C T I O N
(millions of ounces)

19 9 9   P R O D U C T I O N
(estimate)

(cid:71)(cid:111)(cid:108)(cid:100)(cid:115)(cid:116)(cid:114)(cid:105)(cid:107)(cid:101)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)(cid:40)(cid:53)(cid:57)(cid:37)(cid:41)(cid:32)(cid:32)(cid:32)(cid:32)

(cid:80)(cid:105)(cid:101)(cid:114)(cid:105)(cid:110)(cid:97)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)(cid:40)(cid:50)(cid:51)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:67)(cid:97)(cid:110)(cid:97)(cid:100)(cid:105)(cid:97)(cid:110)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:40)(cid:56)(cid:37)(cid:41)(cid:32)(cid:32)(cid:32)(cid:32)

(cid:79)(cid:116)(cid:104)(cid:101)(cid:114)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:40)(cid:49)(cid:48)(cid:37)(cid:41)(cid:32)(cid:32)(cid:32)

B A R R I C K   G O L D   C O R P O R A T I O N  

CASH M ARGIN S BY MINE

CAPITA L EXPENDITURES

Barrick produced the
highest cash margins in
the industry in 1998.
Low total cash costs, com-
bined with a realized 
price of $400 per ounce
for every ounce sold
through the Premium
Gold Sales Program, gen-
erated these outstanding
results. For 1999, margins
are expected to rise again
as costs decline further.

Capital expenditures for
1998 totaled $507 million,
with the major outlay
being $248 million for
development of the
Pierina Mine.

For 1999, planned capital
expenditures, including
reserve development, total 
$520 million, including
$250 million for the
construction of the roaster
at Goldstrike. Sustaining
capital will be $75 million,
comparable to 1998.

(cid:53)(cid:49)(cid:46)(cid:49)

(cid:53)(cid:48)(cid:46)(cid:51)

(cid:53)(cid:49)(cid:46)(cid:53)

GOLD RESERVES

19 9 9   CA PITA L E X P E N DIT U R E S
(estimate)

(cid:71)(cid:111)(cid:108)(cid:100)(cid:115)(cid:116)(cid:114)(cid:105)(cid:107)(cid:101)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)(cid:40)(cid:55)(cid:50)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:80)(cid:105)(cid:101)(cid:114)(cid:105)(cid:110)(cid:97)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)(cid:40)(cid:49)(cid:48)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:80)(cid:97)(cid:115)(cid:99)(cid:117)(cid:97)(cid:32)(cid:80)(cid:114)(cid:111)(cid:106)(cid:101)(cid:99)(cid:116)(cid:32)(cid:40)(cid:56)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:67)(cid:97)(cid:110)(cid:97)(cid:100)(cid:105)(cid:97)(cid:110)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:40)(cid:50)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:82)(cid:101)(cid:115)(cid:101)(cid:114)(cid:118)(cid:101)(cid:32)(cid:68)(cid:101)(cid:118)(cid:101)(cid:108)(cid:111)(cid:112)(cid:109)(cid:101)(cid:110)(cid:116)(cid:32)(cid:40)(cid:56)(cid:37)(cid:41)(cid:32)

(cid:51)(cid:55)(cid:46)(cid:54)

(cid:51)(cid:54)(cid:46)(cid:53)

In 1998, Barrick’s reserves
increased to 51.5 million
ounces of gold. This
increase reﬂects the Com-
pany’s discovery of
4.8 million ounces of gold
during the year, which
added a net 1.2 million
ounces to reserves after
production. Over the past
ﬁve years, Barrick has
added 30 million ounces to
reserves while producing
15 million ounces of gold.

G O L D   R E S E R V E S

(cid:71)(cid:111)(cid:108)(cid:100)(cid:115)(cid:116)(cid:114)(cid:105)(cid:107)(cid:101)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)(cid:40)(cid:53)(cid:51)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:80)(cid:97)(cid:115)(cid:99)(cid:117)(cid:97)(cid:32)(cid:80)(cid:114)(cid:111)(cid:106)(cid:101)(cid:99)(cid:116)(cid:32)(cid:40)(cid:50)(cid:55)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:80)(cid:105)(cid:101)(cid:114)(cid:105)(cid:110)(cid:97)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)(cid:40)(cid:49)(cid:52)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:67)(cid:97)(cid:110)(cid:97)(cid:100)(cid:105)(cid:97)(cid:110)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:40)(cid:51)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:79)(cid:116)(cid:104)(cid:101)(cid:114)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:40)(cid:51)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:51)(cid:53)(cid:50)

(cid:50)(cid:51)(cid:51)

(cid:50)(cid:51)(cid:50)

(cid:121)
(cid:116)
(cid:114)
(cid:101)
(cid:112)
(cid:111)
(cid:114)
(cid:80)
(cid:32)
(cid:101)
(cid:107)
(cid:105)
(cid:114)
(cid:116)
(cid:115)
(cid:100)
(cid:108)
(cid:111)
(cid:71)

(cid:121)
(cid:116)
(cid:114)
(cid:101)
(cid:112)
(cid:111)
(cid:114)
(cid:80)
(cid:32)
(cid:97)
(cid:110)
(cid:105)
(cid:114)
(cid:101)
(cid:105)
(cid:80)

(cid:115)
(cid:101)
(cid:105)
(cid:116)
(cid:114)
(cid:101)
(cid:112)
(cid:111)
(cid:114)
(cid:80)
(cid:32)
(cid:110)
(cid:97)
(cid:105)
(cid:100)
(cid:97)
(cid:110)
(cid:97)
(cid:67)

(cid:49)(cid:51)(cid:57)

(cid:115)
(cid:101)
(cid:105)
(cid:116)
(cid:114)
(cid:101)
(cid:112)
(cid:111)
(cid:114)
(cid:80)
(cid:32)
(cid:114)
(cid:101)
(cid:104)
(cid:116)
(cid:79)

19 9 8   C A S H M A R G I N S
(dollars per ounce)

Barrick’s reserves are

of unequalled quality.

Even using a gold price

of $300 per ounce as 

the basis for calcula-

tion, 48 million ounces,

or 93% of these

reserves, are proﬁtable.

(cid:50)(cid:48)(cid:46)(cid:48)(cid:32)(cid:45)

(cid:57)(cid:52)

(cid:57)(cid:53)

(cid:57)(cid:54)

(cid:57)(cid:55)

(cid:57)(cid:56)

G O L D   P R I C E   A S S U M P T I O N :
(1998 – $325; 1997 – $350; 
1994-1996 – $400)

G O L D   R E S E R V E S
(millions of ounces)

1 7

B A R R I C K   G O L D   C O R P O R A T I O N

G O L D S T R I K E
P R O P E R T Y

(cid:78) (cid:79) (cid:82) (cid:84) (cid:72)
(cid:65) (cid:77) (cid:69) (cid:82) (cid:73) (cid:67) (cid:65)

Betze-Post and Meikle Mines

Situated on the rich Carlin Trend of north-central Nevada, Goldstrike is the home of

Goldstrike
Propert y 

Carlin Trend, Nevada

two world-class mines, open pit Betze-Post and underground Meikle. As well, the Property

hosts several other prospective gold deposits, including Grifﬁn and Rodeo. The Goldstrike

Property has produced 14 million ounces of gold since 1987 and still had 27.3 million ounces

in reserves at year-end 1998. The Property continues to evolve from the original Betze

open pit operation into a dynamic complex. Today Goldstrike concurrently mines several

deposits by both open pit and underground methods, and by mid-2000 will have two 

separate processing facilities. Production should total at least 2 million low-cost ounces 

of gold a year well into the next millennium.

G O L D S T R I K E   P R O P E R T Y

9 7  

9 8

9 9 E

O U T L O O K   F O R   19 9 9 :  

Tons mined (millions)
161.5
159.8
Tons milled (thousands)
6,033
6,228
Grade processed (ounces per ton)
0.42
0.38
Recovery rate (%)
91.5
91.8
Gold production (thousands of ounces) 2,180
2,346
Cash operating costs per ounce
$ 141
$ 153
Total production costs per ounce
$ 230
$ 220
Reserves (thousands of ounces)
29,341 27,333
Mineralized material 
(thousands of ounces)

8,806

6,456

○ Production is expected to total 2,130,000 ounces, with Meikle

contributing 1 million ounces.

○ Cash operating costs are expected to decline to $133 an ounce,
beneﬁting from higher production from low-cost Meikle.

○ Capital expenditures are estimated at $380 million, of which
$250 million is for the roaster and the balance for deferred
stripping, mine equipment, shaft deepening and under-
ground development.

○ The asset exchange with Newmont Mining Corporation is 
targeted for completion by the end of the ﬁrst quarter.

151.0
6,085
0.39
92.7
2,130
$ 133
$ 213
–

–

Y E A R   I N   R E V I E W  

The Goldstrike Property
produced a record 
2.3 million ounces of gold,
an 8% increase from 
1997. Cash operating costs
fell to a record low of
$141 per ounce.

Goldstrike also laid the
groundwork for continued

strong performance in the
future. The Property 
commenced construction
of a new roaster; conducted
drilling that conﬁrmed 
the exciting underground
exploration potential 
at depth at Meikle and at
the Rodeo and Grifﬁn

deposits; and signed 
an Agreement in Principle
with Newmont Mining
Corporation for an asset
exchange on the Carlin
Trend which increases the
exploration potential 
and operational ﬂexibility
of the Property.

1 8

B A R R I C K   G O L D   C O R P O R A T I O N

B E T Z E- P O S T
M I N E

N E V A D A

Betze-Post Mine

Y E A R   I N   R E V I E W  

Betze-Post remained the backbone of Barrick’s operations in 1998, producing 1.5 million

ounces of gold at a cash operating cost of $176 per ounce. Productivity improvements were

key. At the Betze-Post pit, unit mining costs have fallen by 10% over the past two years.

Notably, major savings have been realized in hauling costs through a variety of productivity

improvements. For 1999, production is declining as mining activity moves into areas of

the pit containing lower ore grades. As a result of higher production at Meikle, lower

throughput is planned at Betze-Post in 1999. Production should rise in 2000 with the addition 

of the roaster to process an anticipated 10 million tons of stockpiled carbonaceous ore.

B E T Z E- P O S T   M I N E

9 7  

9 8

9 9 E

O U T L O O K   F O R   19 9 9 :  

Tons mined (millions)
160.6
159.0
Tons milled (thousands)
5,176
5,487
Grade processed (ounces per ton)
0.32
0.32
Recovery rate (%)
89.2
91.0
Gold production (thousands of ounces) 1,606
1,499
Cash operating costs per ounce
$ 176
$ 171
Total production costs per ounce
$ 248
$ 255
Reserves (thousands of ounces)
24,058 21,213
Mineralized material 
(thousands of ounces)

2,838

2,398

○ Production is expected to be 1,130,000 ounces, reﬂecting

lower ore grades and milling rates than in 1998.

○ Cash operating costs are expected to be $185 an ounce; the

decline in ore grades is partially offset by lower mining and
processing unit costs.

○ Total cash costs, including royalties and production taxes,

are expected to decline to $200 per ounce from $205 in 1998,
as production moves into areas with lower royalties.

○ Capital expenditures of $90 million are planned, primarily

for deferred stripping and replacement of mine equipment.

150.0
5,000
0.25
90.0
1,130
$ 185
$ 260
–

–

T H E   B A R R I C K / N E W M O N T   A S S E T   E X C H A N G E

The proposed agreement
is scheduled to close at
the end of the ﬁrst quarter
of 1999.

Barrick receives the land
corridor currently sepa-
rating the Betze-Post 
and Meikle mines; the

Goldbug deposit; the
Banshee Property to the
north of the Meikle 
Mine; and other operat-
ing synergies in the
Betze-Post pit.

Newmont receives
Barrick’s portion of the

underground Deep Post
deposit; Barrick’s 40%
interest in the High 
Desert Property; the land
corridor between the
Deep Post and Deep Star
deposits; and some low-
grade stockpiled material.

1 9

B A R R I C K   G O L D   C O R P O R A T I O N

M E I K L E
M I N E

N E V A D A

Meikle Mine

Y E A R   I N   R E V I E W  

The high-grade Meikle Mine achieved outstanding operating results during its second full

year of operation. Meikle produced 847,313 ounces of gold in 1998, an increase of nearly

50% over 1997. Cash operating costs declined 25% to $77 per ounce due to higher production

at lower unit costs, which reﬂected higher ore grades and productivity improvements. A

shaft deepening will be completed in 1999 to permit development of the lower portion of

the main zone and further exploration; early results conﬁrm that high-grade mineralization

continues at depth. South of Meikle, the Rodeo exploration shaft and the exploration

decline linking the Rodeo and Grifﬁn deposits to the Meikle Mine were completed. As well,

1.4 million ounces were added to reserves at Rodeo and Grifﬁn by year-end 1998. Explo-

ration in 1999 should further add to reserves along the Meikle corridor.

M E I K L E   M I N E

9 7  

9 8

9 9 E

O U T L O O K   F O R   19 9 9 :  

Tons mined (thousands)
Tons milled (thousands)
Grade processed (ounces per ton)
Recovery rate (%)
Gold production (thousands of ounces)
Cash operating costs per ounce
Total production costs per ounce
Reserves (thousands of ounces)
Mineralized material 
(thousands of ounces)

775
741
0.81
95.6
574
$ 103
$ 181
5,283

877
857
1.03
95.9
847
$ 77
$ 155
6,120

1,000
1,085
1.00
96.0
1,000
$ 75
$ 160
–

5,968

4,058

–

○ Production is expected to rise to 1 million ounces due to
higher mining rates and continued high ore grades.

○ Cash operating costs are expected to decline to $75 an ounce,
beneﬁting from lower mining and processing unit costs.

○ Capital expenditures of $25 million are anticipated to com-

plete shaft deepening and development.

○ A two-phase exploration program is planned to expand

underground reserves in the Meikle corridor.

M A J O R   G O L D S T R I K E   P R O J E C T

Construction began in
1998 on a 12,000-ton-
per-day roaster facility
to treat the Property’s 
12 million ounces 
of carbonaceous ore.
Barrick chose proven
roaster technology.

When the $330-million
project is completed 
in mid-2000, processing
capacity at Goldstrike
will rise from 17,500 to
29,500 tons per day.
The roaster will achieve
gold recovery rates of

2 0

90%, comparable to
autoclaving. Overall, the
roaster is expected to
reduce processing costs
for the Property by 
10% and increase pro-
cessing ﬂexibility.

B A R R I C K   G O L D   C O R P O R A T I O N

P I E R I N A
P R O P E R T Y

S O U T
A M E R I

H
C

A

South American Property

Production began in November 1998 and totaled 56,860 ounces of gold by year-end at

Pierina Propert y

Pierina Belt, Peru

Y E A R   I N   R E V I E W  

Barrick’s new low-cost Pierina Mine, located 185 miles north of Lima, Peru. Barrick

acquired Pierina as an advanced-stage exploration property from Arequipa Resources Ltd.

in 1996. Barrick’s development team engineered a fast-track development plan that 

was approved and put into action within one year of the acquisition. Construction began

in late 1997 and progressed through 1998, despite El Niño-related record rainfall in the

region. The Pierina project brought about the construction of a 50-mile power transmission

line, a 10-mile access road, a valley-ﬁll heap-leach facility with related infrastructure, ore

crushing facilities, and a state-of-the-art Merrill-Crowe gold processing plant. The Mine

was built at a cost of under $260 million.

P I E R I N A   M I N E

9 8*

9 9 E

O U T L O O K   F O R   19 9 9 :  

Tons mined (millions)

Tons placed on pad (thousands)

Gold production (thousands of ounces)

Cash operating costs per ounce

Total production costs per ounce

Reserves (thousands of ounces)

Mineralized material 
(thousands of ounces)

*Production began in November 1998

2.7

20

1,506

7,800

57

835

$ 48

$ 45

$ 244

7,244

$ 250
–

782

–

○ Production is estimated to be 835,000 ounces, reﬂecting

higher ore grades in early years.

○ Cash operating costs are estimated at $45 an ounce due 
to higher grades and lower mining and processing costs.

○ For the ﬁrst three years, production is expected to average
750,000 ounces, at a cash operating cost of $50 per ounce.

○ Planned capital expenditures of $50 million consist of

a leach pad expansion and additional mining equipment.

O V E R V I E W

With reserves of 7.2 mil-
lion ounces, Pierina 
has a mine life of at least 
11 years. Cash operating
costs are expected to 
average $100 per ounce
over the life of the mine.
The low costs are due 
to the Mine’s high grades,
low processing costs 

and low strip ratio (ore 
to waste). The open pit
truck-and-shovel opera-
tion will employ satellite
tracking to ensure pro-
per routing of material.
The process facilities 
consist of a valley-ﬁll heap
leach pad and a Merrill-
Crowe gold and silver

recovery plant. Both are
proven recovery methods 
that Barrick has applied 
at Pierina under strict 
environmental standards.
In addition, exploration
continues on the Pierina
Belt for similar type
deposits.

2 1

B A R R I C K   G O L D   C O R P O R A T I O N

C A N A D I A N
P R O P E R T I E S

N O R T H
A M E R I C A

Holt-McDermott and 

Bousquet Mines

Canad ian
Properties

Abitibi Belt, Canada

H O LT- M C D E R M O T T   M I N E Holt-McDermott is an under-
ground mine located on the Abitibi Belt in northeastern
Ontario. Holt-McDermott had the best year in its history 
in 1998, with record-high production and record-low cash
costs. The Mine produced 134,379 ounces of gold during
the year at a cash operating cost of $134 per ounce, reﬂecting
higher milling rates and lower unit costs. A shaft deep-
ening program was begun in the third quarter of 1998 to
provide access to the deeper reserves and explore the
potential of the Mine at depth.

O U T L O O K   F O R   19 9 9 :  

○ Production is estimated 

to be 110,000 ounces due 
to lower processing grades
in 1999.

○ Cash operating costs 

are expected to decline to 
$130 an ounce due 
to further reductions in 
unit costs.

○ Capital expenditures of
$5 million will complete
shaft deepening.

H O LT- M C D E R M O T T   M I N E

9 7  

9 8

9 9 E

B O U S Q U E T   M I N E

9 7  

9 8

9 9 E

Tons mined (thousands)
503
Tons milled (thousands)
462
Grade processed (ounces per ton)
0.26
Recovery rate (%)
96.5
Gold production (thousands of ounces) 117
Cash operating costs per ounce
$ 139
Total production costs per ounce
$ 221
Reserves (thousands of ounces)
705
Mineralized material 
(thousands of ounces)

363

513
548
0.26
96.4
134
$ 134
$ 229
611

535
535
0.22
96.5
110
$ 130
$ 220
–

370

–

Tons mined (thousands)
656
Tons milled (thousands)
667
Grade processed (ounces per ton)
0.27
Recovery rate (%)
96.2
Gold production (thousands of ounces) 170
Cash operating costs per ounce
$ 194
Total production costs per ounce
$ 293
Reserves (thousands of ounces)
906
Mineralized material 
(thousands of ounces)

1,064

714
714
0.26
95.8
176
$ 194
$ 400
666

790
790
0.24
94.0
175
$ 200
$ 480
–

776

–

B O U S Q U E T   M I N E Bousquet is an underground operation
located on the Abitibi Belt in northwestern Quebec.
Bousquet had an excellent year in 1998. The Mine achieved
higher mining rates and lower cash operating costs, as 
a result of productivity improvements and cost-control
strategies. Production totaled 175,621 ounces of gold at 
a cash operating cost of $194 per ounce. During the year,
development continued on the new 3-1 Zone, an area of
mineralization located 3,500 feet from the main ore body
that will enter production in early 1999.

O U T L O O K   F O R   19 9 9 :  

○ Production is estimated 
to be 175,000 ounces.

○ Cash operating costs

should average $200 an
ounce, with higher mining
rates offsetting marginally
lower ore grades.

○ Capital expenditures of
$5 million will complete
the 3-1 Zone development.

2 2

B A R R I C K   G O L D   C O R P O R A T I O N

(cid:72)

(cid:67)

(cid:65)

(cid:65)

(cid:78) (cid:79) (cid:82) (cid:84)
(cid:77) (cid:69) (cid:82) (cid:73)

B U L L F R O G   A N D
P I N S O N   M I N E S

(cid:65)

(cid:83) (cid:79) (cid:85) (cid:84)
(cid:77) (cid:69) (cid:82) (cid:73)

E L   I N D I O   A N D
T A M B O   M I N E S

North and South American

Properties

Ot her Properties

Nevada, USA

El Indio Belt, Chile

During 1998, Other Properties delivered improved perfor-
mance, producing a total of 492,034 ounces of gold at 
a cash operating cost of $255 per ounce. All operations
reduced cash operating costs from the previous year 
and increased production, with the exception of Pinson.

The Doyon Mine was sold early in the ﬁrst quarter for cash
proceeds of $95 million, as well as a 50% interest in the 
El Coco exploration property and a gold price participation
right on future production above an average gold price 
of $375 per ounce.

In late 1997, Barrick embarked on a plan to phase out its
higher-cost mines, which were not contributing signiﬁcantly
to earnings and cash ﬂow. Those mines scheduled for clo-
sure included the El Indio and Tambo mines in Chile, and
the Bullfrog and Pinson mines in the United States. Pinson
ceased operations in January 1999. The three remaining
operations are expected to close by year-end 1999. Mercur
and Golden Patricia ceased operations in 1997.

O U T L O O K   F O R   19 9 9 :  

○ Production is estimated 
to be 350,000 ounces.
This reﬂects a smaller
contribution from
Bullfrog, which completed
underground mining 
at the end of 1998 and is
processing low grade
stockpiles in 1999.

○ Cash operating costs 

are expected to decline to
$230 an ounce due to
lower costs at the Chilean
mines.

○ Closure of the three

remaining operations is
expected by the end 
of 1999.

O T H E R P R O P E R T I E S

P R O D U C T I O N   (ounces)

97 

98 

99E

C A S H O P E R A T I N G C O S T S   P E R   O U N C E

97 

98 

99E

Bullfrog 

Tambo 

El Indio 

Pinson

Doyon 

Mercur

Golden Patricia

206,571

133,297

81,898

25,583

81,336

40,269

12,428

208,123

167,357

99,102

17,452
–

–

–

75,000

175,000

100,000
–

–

–

–

Bullfrog 

Tambo 

El Indio 

Pinson

Doyon 

Mercur

Golden Patricia

$ 277

$ 233

$ 270

299

339

316

297

320

223

267

274

298
–

–

–

220

220

–
–

–

–

Total

581,382

492,034

350,000

Total

$ 297

$ 255

$ 230

2 3

B A R R I C K   G O L D   C O R P O R A T I O N

EXPLORATION AND

development

Barrick is conducting exploration on the major gold belts where it has 
land positions with proven potential. Exploration drilling has confirmed
exciting new underground mineralization at Goldstrike and continues to
expand the already vast reserves and resources of the Pascua Project in
Chile and Argentina.

T H E   P A S C U A   P R O J E C T   With reserves and resources of
20 million ounces of gold and 525 million ounces of silver,
the Pascua Project is expected to be a major part of
Barrick’s growing production proﬁle.

Located at the northern end of the El Indio gold belt,
the Pascua Project straddles the border between Chile and
Argentina. The Property’s potential has expanded steadily
since Barrick acquired it in 1994. In 1998 alone, exploration
drilling on the Property increased proven and probable
reserves by three million ounces to 14 million ounces of
gold and 440 million ounces of silver. And that does not
take into account the unfolding exploration potential on the
Argentinean side of the border. Exploration in Argentina
during 1998 discovered new mineralized zones that will be
targeted for further drilling in 1999.

The engineering at Pascua is nearly complete. Based on
work done to date, the Mine is expected to be developed 
at a cost of $950 million and produce 675,000 ounces of
gold and 20 million ounces of silver annually at an initial
cash operating cost of $125 per ounce.

2 4

Pascua Ore Body

Pit Boundary

Exploration Targets

Main Faults

N

El Morro Oeste

CHILE

Pascua 
Extension

ARGENTINA

K I L O M E T E R S
0

1

P A S C U A   P R O J E C T

For 1999, the Pascua exploration
program consists of 13,000 meters
of drilling from an exploration 
tunnel extending from Chile into
Argentina. The tunnel is scheduled
for completion in the second quarter
of 1999. A surface program consists 
of 40,000 meters of drilling on the
principal targets (identiﬁed above)
to add to the resource category.

T H E   D E E   A N D   R O S S I

P R O P E R T I E S   Located just
three miles north of
Goldstrike, the Dee and
Rossi Properties lie on the
extension of the same 
Post Fault that deﬁnes the
Betze-Post, Meikle, Grifﬁn
and Rodeo ore bodies.
Dee and Rossi provide
great exploration potential,
particularly at depth.
During 1999, drilling will
follow up promising 1998
results at Dee and begin 
to deﬁne the underground
potential of Rossi. The
proximity of these pro-
perties to the Goldstrike
Property means that excel-
lent synergies could be
achieved in the event of
a discovery.

B A R R I C K   G O L D   C O R P O R A T I O N

(cid:78)

N O R T H   C A R L I N   T R E N D

Goldstrike Property

Proposed land to Barrick

Proposed land to Newmont

Dee Property

Rossi Property

Roads

Post Fault

M E I K L E C O R R I D O R

Development Completed

Development Phase 2

Development Proposed

FEET
0

500

1000

Rodeo Shaft

Rodeo 

N

E. Griffin

W. Griffin

5000 foot
decline

(cid:77) (cid:73) (cid:76) (cid:69) (cid:83)

(cid:48)

(cid:49)

(cid:50)

(cid:51)

25 feet

Production Shaft

Vent Shaft

Meikle

1025

2025

Meikle deep drilling

Meikle deep drilling

Griffin deep drilling

Rodeo deep drilling

G O L D S T R I K E ’ S  

M E I K L E C O R R I D O R

Excellent exploration
potential exists at Gold-
strike, where underground
drilling has conﬁrmed a
mile-long corridor of
mineralization, stretching
from the Meikle Mine 
in the north, through 
the Grifﬁn deposit, to the
Rodeo deposit in the
south. Early exploration

has also conﬁrmed the
continuation of high-grade
mineralization at depth at
Meikle. Exploration
drilling along the 5,000-
foot decline, completed 
in 1998 between Meikle
and the Rodeo exploration
shaft, added 1.4 million
ounces in reserves at the
Rodeo and Grifﬁn deposits
alone. During 1999,
85,000 feet of drilling will

take place in the Meikle
corridor in a ﬁrst-phase
program. Upon comple-
tion of the asset exchange
with Newmont, a second
phase will incorporate the
Goldbug deposit.

It is expected that Grifﬁn
will enter production in
2000, with Rodeo follow-
ing in 2001 or 2002.

2 5

B A R R I C K   G O L D   C O R P O R A T I O N

SOCIA L, ENVIRON M ENTA L AND E MPLOYEE

responsibility

For Barrick, operating excellence extends beyond production results 
to include a strong sense of responsibility to the environment, local 
communities and Company employees. 

S O C I A L Barrick’s policy is to give 1% of annual pre-tax
income to charitable endeavors. During 1998, Barrick
donated $4.3 million to education, health care and other
causes in the communities where it operates in order to
build lasting, mutually beneﬁcial partnerships. As Barrick
develops each mine site, it invests time and energy into
building strong ties with surrounding communities.

2 6

Dr. Edgardo Alanis, Pierina

C O M M U N I T Y R E L A T I O N S

The most recent example of Barrick’s
community involvement is at the
Pierina Mine in Peru. Barrick has
funded new health care facilities;
built and improved roads throughout
the district; constructed new water
and irrigation systems; and provided
bussing for school children as well
as desks for them to work on. Devel-
oping self-reliance is key. In consul-
tation with local leaders, Barrick has
created programs to advise local
entrepreneurs and train farmers in
crop rotation and animal husbandry.

B A R R I C K   G O L D   C O R P O R A T I O N

E N V I R O N M E N T A L   Barrick
believes that laws and reg-
ulations are only the 
starting point for environ-
mental leadership at 
every stage of the mining
life cycle. The Company
seeks to instill an aware-
ness in all employees of
their role in protecting the
environment, whether 
it be through ensuring
water and air quality, or
enhancing wildlife habitat.

E N V I R O N M E N T A L   A W A R D S

During 1998, Barrick environmental staff earned several awards for environmen-
tal leadership.

○ “1998 Earth Day Award for Outstanding Site Restoration” from the Utah

Department of Natural Resources, for exemplary work at the Mercur Mine.

○ “1998 Excellence in Mine Reclamation Award” from the New Mexico

Department of Energy, Minerals and Natural Resources, for reclamation
work at the Cunningham Hill Mine.

○ “1998 Conservation Company of the Year” awarded to Goldstrike by Trout

Unlimited, Northeast Nevada Chapter.

C A R I N G   F O R   E M P L O Y E E S

Barrick provides employ-
ees with attractive wages
and beneﬁts in order to
promote an entrepreneur-
ial spirit. As well as medical
and performance incentive
plans, those beneﬁts
include the Barrick schol-
arship program for
employees’ children. To
honor the memory of its
former President, Barrick
has renamed the award the
“Robert M. Smith Scholar-
ship Program.” Created 
by Bob Smith in 1986, the

program entitles all chil-
dren of Barrick employees
to receive Company-
paid scholarships for post-
secondary education.

During 1998 Barrick
awarded $1.1 million in
scholarship funds to 
502 students. As Bob once
explained about the 
scholarships, “Our employ-
ees are the main reason
for Barrick’s success. The
scholarship program is a
way to share the beneﬁts.”
Since its inception, the
program has awarded

about 2,850 scholarships
with a total value of
approximately $6 million.

Work place health and
safety is a top priority at
all Barrick operations.
Employees and managers
share a common philoso-
phy: there is only one 
way to work, the safe way.
The result is exemplary
safety performance, such
as the Betze-Post Mine’s
record-low loss-time-
accident frequency rate in
1998, which was among
the lowest in the industry.

Chris Chapman

2 7

B A R R I C K   G O L D   C O R P O R A T I O N

WE ARE 

strong

Barrick’s  balance  sheet  grew  stronger  than  ever  in 1998,  reinforced  by  the  cash  flow

created  by  rising  production,  falling  costs  and  the  premium  earned  on  the  Company’s

gold  sales.  The  Company  has  a  cash  position  of  $416  million,  shareholders’ equity  of

$3.6  billion  and  virtually  no  net  debt.  As  a  result,  Barrick  remains  the  only  company 

in the gold industry with an “A” credit rating.

C R E D I T

R A T I N G

2 8

B A R R I C K   G O L D   C O R P O R A T I O N

M ANAGE M ENT’S DISCUSSION AND ANA LYSIS 

OF FINANCIA L RESULTS

Barrick had a remarkable year in 1998,

achieving record earnings and cash ﬂow

during the weakest gold market in 20 years.

Net income in 1998 was $301 million,

or $0.79 per share, 15% higher than the

$262 million, or $0.70 per share, earned 

in 1997 before a provision for mining prop-

erties. Correspondingly, operating cash

ﬂow also increased 15% to $539 million,

or $1.43 per share, from the $470 million,

or $1.26 per share, recorded in 1997.

The record results were attributable 

to the highest production and lowest cash

operating costs in the Company’s history,

combined with the premium earned on

gold sales. The Company expects this

trend to continue in 1999 with an increase

in production and a further decrease 

in cash costs.

(cid:53)(cid:51)(cid:57)

(cid:49)(cid:46)(cid:52)(cid:50)

(cid:49)(cid:46)(cid:52)(cid:51)

(cid:52)(cid:54)(cid:51)

(cid:52)(cid:55)(cid:48)

(cid:49)(cid:46)(cid:50)(cid:50)

(cid:49)(cid:46)(cid:50)(cid:56)

(cid:49)(cid:46)(cid:50)(cid:54)

(cid:53)(cid:48)(cid:50)

(cid:51)(cid:55)(cid:54)

(cid:50)(cid:57)(cid:50)

(cid:50)(cid:53)(cid:49)

(cid:50)(cid:53)(cid:54)

(cid:42)

(cid:50)(cid:54)(cid:50)

(cid:42)

(cid:51)(cid:48)(cid:49)

(cid:48)(cid:46)(cid:56)(cid:48)

(cid:48)(cid:46)(cid:56)(cid:50)

(cid:48)(cid:46)(cid:55)(cid:57)

(cid:48)(cid:46)(cid:55)(cid:48)(cid:32)(cid:42) (cid:48)(cid:46)(cid:55)(cid:48)(cid:32)(cid:42)

(cid:57)(cid:52)

(cid:57)(cid:53)

(cid:57)(cid:54)

(cid:57)(cid:55)

(cid:57)(cid:56)

(cid:57)(cid:52)

(cid:57)(cid:53)

(cid:57)(cid:54)

(cid:57)(cid:55)

(cid:57)(cid:56)

E A R N I N G S   A N D  
C A S H F L O W  
(millions of dollars)
*before provision

E A R N I N G S   A N D   C A S H
F L O W   P E R   S H A R E
(dollars per share)
*before provision

(cid:79)(cid:112)(cid:101)(cid:114)(cid:97)(cid:116)(cid:105)(cid:110)(cid:103)(cid:32)(cid:67)(cid:97)(cid:115)(cid:104)(cid:32)(cid:70)(cid:108)(cid:111)(cid:119)

(cid:78)(cid:101)(cid:116)(cid:32)(cid:73)(cid:110)(cid:99)(cid:111)(cid:109)(cid:101)

(cid:79)(cid:112)(cid:101)(cid:114)(cid:97)(cid:116)(cid:105)(cid:110)(cid:103)(cid:32)(cid:67)(cid:97)(cid:115)(cid:104)(cid:32)(cid:70)(cid:108)(cid:111)(cid:119)

(cid:78)(cid:101)(cid:116)(cid:32)(cid:73)(cid:110)(cid:99)(cid:111)(cid:109)(cid:101)

O U T L O O K   Q U I C K   FA C T S

9 8

9 9 E

change

C O M M E N T   O N   19 9 9

Production (millions of ounces)

3.2

3.6

+13%

○ First full year of production at Pierina and higher mining

rates at Meikle.

Realized gold price per ounce

$ 400

$ 385

–4%

○ Higher production than originally planned reduced the

Cash operating costs per ounce $ 160

$ 125

–22%

Total cash costs per ounce

$ 180

$ 137

–24%

Depreciation per ounce

$ 67

$ 103

+54%

Exploration expense (millions)

$ 50

$ 40

–20%

realized price from $400 per ounce.

○ Pierina and Meikle are expected to produce a total of
1.8 million ounces at an average cash operating cost of
less than $65 per ounce.

○ Reﬂects lower royalties at Goldstrike and new royalty-free pro-
duction at Pierina, combined with lower cash operating costs.

○ First year of Pierina depreciation at $200 per ounce.

○ Focused on and around existing properties in Nevada, Peru,

Chile and Argentina.

2 9

B A R R I C K   G O L D   C O R P O R A T I O N

G O L D   S A L E S

for its gold production through to the 

Under its Premium Gold Sales Program,

end of 2001. If gold prices remain at

Barrick realized $400 per ounce on its gold

current levels, the Company will generate

sales in 1998, compared with $420 in 1997

an additional $1 billion in revenue over

($415 in 1996). The Company generated a

the next three years.

$106-per-ounce premium over the average

spot price of $294 per ounce for the year,

resulting in $340 million in additional

revenue in 1998. Over the past 10 years,

THE PREMIUM GOLD SALES PROGRAM

Barrick has realized $56 per ounce above

is a cornerstone of Barrick’s new era

the average spot price of $356 per ounce

of growth. Under the program, Barrick

during the period, or $1.1 billion in

has the next three years of production,

additional revenues.

Revenue from gold sales of 3,216,323

ounces was $1,287 million in 1998,

marginally higher than the $1,284 million

reported in 1997 on gold sales of

3,058,546 ounces ($1,299 million in 1996

on gold sales of 3,128,941 ounces). In

1998, the beneﬁt of the 5% increase in

gold production was offset by a similar

decrease in the realized price.

The Company expects to realize an

average minimum price of $385 per 

or 11.5 million ounces, sold forward 

at $385 per ounce. This represents a

$4 billion off-balance sheet asset,

which generates interest income of

more than $200 million a year.

The Program offers protection

against a falling gold price and

potential to fully benefit from a gold

price rally. The track record shows

that because of the Program, Barrick

shares outperform those of its peers

in both rising and falling markets.

(cid:52)(cid:48)(cid:50)

(cid:49)(cid:56)

(cid:51)(cid:56)(cid:52)

(cid:52)(cid:48)(cid:54)

(cid:50)(cid:50)

(cid:51)(cid:56)(cid:52)

(cid:52)(cid:49)(cid:53)

(cid:50)(cid:55)

(cid:51)(cid:56)(cid:56)

(cid:52)(cid:50)(cid:48)

(cid:56)(cid:56)

(cid:51)(cid:51)(cid:50)

(cid:52)(cid:48)(cid:48)

(cid:49)(cid:48)(cid:54)

(cid:50)(cid:57)(cid:52)

(cid:50)(cid:48)(cid:48)

(cid:57)(cid:52)

(cid:57)(cid:53)

(cid:57)(cid:54)

(cid:57)(cid:55)

(cid:57)(cid:56)

P R E M I U M   G O L D S A L E S
R E V E N U E   V S   S P O T
G O L D P R I C E
(dollars per ounce)

(cid:80)(cid:114)(cid:101)(cid:109)(cid:105)(cid:117)(cid:109)(cid:32)(cid:71)(cid:111)(cid:108)(cid:100)(cid:32)(cid:83)(cid:97)(cid:108)(cid:101)(cid:115)(cid:32)(cid:82)(cid:101)(cid:118)(cid:101)(cid:110)(cid:117)(cid:101)

ounce, compared with the current spot price

(cid:83)(cid:112)(cid:111)(cid:116)(cid:32)(cid:71)(cid:111)(cid:108)(cid:100)(cid:32)(cid:80)(cid:114)(cid:105)(cid:99)(cid:101)

of gold of approximately $285 per ounce,

C O S T S   A N D   E X P E N S E S

Production costs per ounce

Gold production – ounces (thousands)
Cash operating costs
Royalties and production taxes

Total cash costs
Depreciation and amortization
Reclamation

Total production costs

Goldstrike Property
1998

1999E

Pierina Property
1998

1997

1997

2,180
$ 153
31

184
44
2

2,346
$ 141
26

167
50
3

2,130
$ 133
21

154
57
3

$ 230

$ 220

$ 214

3 0

1999E

835
$ 45
–

45
200
5

57
$  48
–

48
191
5

$ 244

$ 250

–
–
–

–
–
–

–

B A R R I C K   G O L D   C O R P O R A T I O N

O P E R A T I N G   C O S T S / P R O D U C T I O N

the average grade of Betze-Post ore pro-

Overv iew

cessed was 0.32 opt, similar to 1997.

The Company lowered operating costs by

Betze-Post Mine

9% to $595 million in 1998, compared

Total unit mining costs at the Betze-Post

with $655 million in 1997 ($691 million in

Mine declined to $1.11 per ton in 1998

1996). On a per ounce basis, cash operat-

from $1.15 per ton in 1997 ($1.18 per ton 

ing costs, at $160, were $10 lower than plan

in 1996). Major savings have been realized

and $22 lower than the $182 per ounce

over the past two years through lower

incurred in 1997 ($193 per ounce in 1996).

diesel fuel usage, extended tire life, fewer

Goldstrike Propert y

The Goldstrike Property, which accounted

for more than 70% of the Company’s gold

production, or 2.3 million ounces, reported

cash operating costs of $141 per ounce,

8% lower than 1997 costs of $153 per

ounce. Increased production of higher-

grade ore as well as productivity

improvements were the primary reasons

major rebuilds of haul truck components

and higher utilization of the overhead

trolley line system used to power trucks

leaving the pit. Mining costs are expected 

to rise marginally in 1999 due to longer

haulage distances. Cash operating costs 

are expected to rise from $176 per ounce

to $185 per ounce as the processed grade 

declines to 0.25 opt.

(cid:49)(cid:57)(cid:56)

(cid:49)(cid:56)

(cid:49)(cid:56)(cid:48)

(cid:49)(cid:57)(cid:52)

(cid:50)(cid:57)

(cid:49)(cid:54)(cid:53)

(cid:50)(cid:49)(cid:55)

(cid:50)(cid:52)

(cid:49)(cid:57)(cid:51)

(cid:50)(cid:48)(cid:54)

(cid:50)(cid:52)

(cid:49)(cid:56)(cid:50)

(cid:49)(cid:56)(cid:48)

(cid:50)(cid:48)

(cid:49)(cid:54)(cid:48)

for the favorable cost performance. The

Meikle Mine

average grade processed at the Property

In 1998, total unit mining costs at the

(cid:57)(cid:52)

(cid:57)(cid:53)

(cid:57)(cid:54)

(cid:57)(cid:55)

(cid:57)(cid:56)

increased to 0.42 ounces per ton (opt) 

Meikle Mine of $50.67 per ton were

in 1998 from 0.38 opt in 1997. The higher

similar to 1997, with lower mining costs

average grade reﬂects increased throughput

being offset by higher dewatering costs.

of higher-grade ore from the Meikle Mine.

The lower mining costs were due to the

The average grade of Meikle ore processed

mining of larger stopes and other pro-

was 1.03 opt versus 0.81 opt in 1997, while

ductivity improvements. The offsetting

C A S H O P E R A T I N G C O S T S /
T O T A L C A S H C O S T S
(dollars per ounce)

(cid:82)(cid:111)(cid:121)(cid:97)(cid:108)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:97)(cid:110)(cid:100)(cid:32)(cid:80)(cid:114)(cid:111)(cid:100)(cid:117)(cid:99)(cid:116)(cid:105)(cid:111)(cid:110)(cid:32)(cid:84)(cid:97)(cid:120)(cid:101)(cid:115)

(cid:67)(cid:97)(cid:115)(cid:104)(cid:32)(cid:79)(cid:112)(cid:101)(cid:114)(cid:97)(cid:116)(cid:105)(cid:110)(cid:103)(cid:32)(cid:67)(cid:111)(cid:115)(cid:116)(cid:115)

Canadian Properties
1998

1999E

310
$ 168
–

168
153
5

285
$ 173
–

173
204
5

1997

286
$ 172
–

172
87
5

Other Properties
1998

1999E

492
$ 255
6

261
83
19

350
$ 230
8

238
70
24

1997

582
$ 297
10

307
115
31

1997

3,048
$  182
24

206
62
8

Total
1998

3,205
$  160
20

180
67
5

1999E

3,600
$  125
12

137
103
5

$ 264

$ 326

$ 382

$ 453

$ 363

$ 332

$ 276

$  252

$  245

3 1

B A R R I C K   G O L D   C O R P O R A T I O N

rise in dewatering costs was associated

Goldstrike Process Div ision 

with a higher pumping rate over the prior

Processing costs in 1998 at the Property

year. However, in mid-1999 the pumping

were $20.44 per ton, slightly lower than

rate will decline to approximately half the

the $20.91 per ton in 1997, due to lower

current rate for the remainder of the 

reagent costs, which comprise 40% of

mine life. At the same time, mining costs

total processing costs. Processing costs

are expected to decline by approximately

in 1999 are expected to decline by a further

10%, reﬂecting the continued mining of

4.5% to $19.50 per ton as a result of lower

larger stopes, improvements in the backﬁll

reagent consumption and maintenance

system and lower ground support costs.

costs. The facilities processed 16,528 tons

Cash operating costs are expected to decline

per day in 1998, down from 17,063 tons

to $75 per ounce from $77 per ounce, as 

per day in 1997, reﬂecting the longer 

a result of lower mining and processing

grinding time required for the Meikle ore,

unit costs and the continued processing 

which lowers throughput.

Goldstrike Propert y – Outlook 

For 1999, the Property is expected to

produce 2.13 million ounces of gold at a

cash operating cost of $133 per ounce.

Lower production of 1.13 million ounces 

is expected at Betze-Post, due to a

combination of lower ore grades and

lower throughput. Higher production 

(cid:49)(cid:53)(cid:51)

from Meikle, totaling 1 million ounces,

will displace lower-grade Betze-Post

material. The Meikle production is

expected to limit throughput to 16,500

tons per day in 1999, similar to 1998.

Pierina Propert y 

Production began in November 1998 and 

by year-end totaled 56,860 ounces of

gold at a cash operating cost of $48 per

ounce. For 1999, the Property is expected 

to produce 835,000 ounces of gold at a cash

operating cost of $45 per ounce. The low

cash costs are due to the Mine’s high grades,

low processing costs and low strip ratio

(ore to waste).

(cid:50)(cid:57)(cid:55)

(cid:50)(cid:53)(cid:53)

(cid:49)(cid:55)(cid:50) (cid:49)(cid:54)(cid:56)

(cid:49)(cid:53)(cid:51)

(cid:49)(cid:52)(cid:49)

(cid:32)

(cid:110)
(cid:97)

(cid:105)

(cid:100)
(cid:97)
(cid:110)
(cid:97)
(cid:67)

(cid:114)
(cid:101)
(cid:104)
(cid:116)
(cid:79)

(cid:32)
(cid:101)
(cid:107)
(cid:105)
(cid:114)
(cid:116)
(cid:115)
(cid:100)

(cid:108)
(cid:111)
(cid:71)

(cid:57)(cid:55) (cid:57)(cid:56)

(cid:57)(cid:55) (cid:57)(cid:56)

(cid:57)(cid:55) (cid:57)(cid:56)

(cid:52)(cid:56)

(cid:97)
(cid:110)

(cid:105)
(cid:114)
(cid:101)
(cid:105)

(cid:80)

(cid:57)(cid:56)(cid:42)

C A S H O P E R A T I N G C O S T S  
B Y P R O P E R T Y
(dollars per ounce)
*ﬁrst year of production

of 1.0 opt ore.

(cid:49)(cid:57)(cid:49)

(cid:32)

(cid:97)
(cid:110)

(cid:105)
(cid:114)
(cid:101)
(cid:105)

(cid:80)

(cid:57)(cid:56)(cid:42)

(cid:49)(cid:49)(cid:53)

(cid:56)(cid:55)

(cid:56)(cid:51)

(cid:53)(cid:48)

(cid:52)(cid:52)

(cid:32)
(cid:101)
(cid:107)
(cid:105)
(cid:114)
(cid:116)
(cid:115)
(cid:100)

(cid:108)
(cid:111)
(cid:71)

(cid:110)
(cid:97)

(cid:105)

(cid:100)
(cid:97)
(cid:110)
(cid:97)
(cid:67)

(cid:114)
(cid:101)
(cid:104)
(cid:116)
(cid:79)

(cid:57)(cid:55) (cid:57)(cid:56)

(cid:57)(cid:55) (cid:57)(cid:56)

(cid:57)(cid:55) (cid:57)(cid:56)

D E P R E C I A T I O N B Y P R O P E R T Y
(dollars per ounce)
*ﬁrst year of production

3 2

B A R R I C K   G O L D   C O R P O R A T I O N

Canad ian Properties 

low-grade stockpiles through 1999. Bullfrog

The Holt-McDermott and Bousquet Mines

and the two Chilean mines are scheduled

produced 310,000 ounces of gold at an 

to be closed by year-end 1999.

average cash operating cost of $168 per 

ounce in 1998, in line with 1997, and 

should produce 285,000 ounces at a similar

combined cost in 1999. At the Holt-

McDermott Mine, cash operating costs of

$134 an ounce were the lowest in the 

Mine’s history. The operation beneﬁted

from higher milling rates and lower unit

mining and processing costs. Cash operating

costs per ounce at the Bousquet Mine 

were the same as in 1997. Lower unit mining

and processing costs were offset by lower

grades and recovery rates.

Ot her Properties 

Royalties and Production Taxes

Substantially all of the Company’s royalties

and production tax expenses are incurred

at the Goldstrike Property, where produc-

tion is subject to a net smelter royalty 

(NSR) and a net proﬁts interest royalty 

(NPI). Royalty costs ﬂuctuate with the 

average spot price of gold, changes 

(cid:52)(cid:54)

in production, and operating and capital 

costs. Total royalties at the Goldstrike 

Property, which have been declining 

steadily over the past three years, were 

$18 per ounce in 1998 compared with 

$24 per ounce in 1997 (1996 – $26 per 

The mines designated for closure in the

ounce) and are expected to decline 

operating plan announced in Septem-

further in 1999 to $15 per ounce. The 

(cid:54)(cid:55)

(cid:54)(cid:50)

(cid:53)(cid:55)

(cid:53)(cid:56)

ber 1997 included the El Indio and Tambo

declining royalty costs reﬂect the lower

(cid:57)(cid:52)

(cid:57)(cid:53)

(cid:57)(cid:54)

(cid:57)(cid:55)

(cid:57)(cid:56)

D E P R E C I A T I O N   P E R O U N C E
(dollars per ounce)

Mines in Chile, and the Bullfrog, Mercur

spot gold prices, higher capital expenditures,

and Pinson Mines in the United States.

and the gradual migration of mining

Mercur ceased operations in December 1997

activity into claim groups that have lower

and the Company sold its 50% interest in

royalties. Production taxes at the Gold-

the Doyon Mine in January 1998. During

strike Property in 1998 were $8 per ounce,

1998, all remaining operations reduced

comparable to the $7 per ounce incurred

costs from the previous year and increased

in 1997 and 1996. Production taxes in 1999

production, other than the Pinson Mine,

are expected to decline to the $6-an-

which closed in January 1999.

ounce level, reﬂecting the increase in 

Ot her Properties – Ou tlook 

In 1999, the Other Properties are expected

to produce 350,000 ounces of gold at an

average cash operating cost of $230 per

ounce. The lower production reﬂects 

a smaller contribution from the Bullfrog

Mine, which completed mining in

December 1998 and is processing

capital expenditures.

D E P R E C I A T I O N   A N D   A M O R T I Z A T I O N

Depreciation and amortization of

$216 million in 1998 was 15% higher

than the $188 million incurred in 1997.

The higher depreciation resulted from: a

5% increase in production; additional

3 3

P R E M I U M   G O L D  
S A L E S   R E V E N U E

(cid:52)(cid:48)(cid:54)

(cid:49)(cid:49)(cid:55)

(cid:52)(cid:49)(cid:53)

(cid:49)(cid:48)(cid:55)

(cid:52)(cid:48)(cid:50)

(cid:49)(cid:50)(cid:48)

(cid:50)(cid:57)

(cid:54)(cid:50)

(cid:50)(cid:52)
(cid:49)(cid:57)(cid:51)

(cid:51)(cid:49)

(cid:54)(cid:48)

(cid:49)(cid:56)
(cid:49)(cid:56)(cid:48)

(cid:52)(cid:48)

(cid:52)(cid:56)

(cid:50)(cid:57)

(cid:49)(cid:54)(cid:53)

(cid:52)(cid:50)(cid:48)

(cid:49)(cid:49)(cid:52)

(cid:51)(cid:48)

(cid:55)(cid:48)

(cid:50)(cid:52)

(cid:49)(cid:56)(cid:50)

(cid:52)(cid:48)(cid:48)

(cid:49)(cid:49)(cid:49)

(cid:51)(cid:55)

(cid:55)(cid:50)

(cid:50)(cid:48)
(cid:49)(cid:54)(cid:48)

(cid:57)(cid:52)

(cid:57)(cid:53)

(cid:57)(cid:54)

(cid:57)(cid:55)

(cid:57)(cid:56)

N E T O P E R A T I N G I N C O M E
(dollars per ounce)

(cid:78)(cid:101)(cid:116)(cid:32)(cid:79)(cid:112)(cid:101)(cid:114)(cid:97)(cid:116)(cid:105)(cid:110)(cid:103)(cid:32)(cid:73)(cid:110)(cid:99)(cid:111)(cid:109)(cid:101)(cid:32)(cid:32)

(cid:73)(cid:110)(cid:99)(cid:111)(cid:109)(cid:101)(cid:32)(cid:84)(cid:97)(cid:120)(cid:32)(cid:32)

(cid:68)(cid:101)(cid:112)(cid:114)(cid:101)(cid:99)(cid:105)(cid:97)(cid:116)(cid:105)(cid:111)(cid:110)(cid:32)(cid:97)(cid:110)(cid:100)(cid:32)(cid:82)(cid:101)(cid:99)(cid:108)(cid:97)(cid:109)(cid:97)(cid:116)(cid:105)(cid:111)(cid:110)(cid:32)(cid:32)

(cid:82)(cid:111)(cid:121)(cid:97)(cid:108)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:97)(cid:110)(cid:100)(cid:32)(cid:80)(cid:114)(cid:111)(cid:100)(cid:117)(cid:99)(cid:116)(cid:105)(cid:111)(cid:110)(cid:32)(cid:84)(cid:97)(cid:120)(cid:101)(cid:115)(cid:32)(cid:32)

(cid:67)(cid:97)(cid:115)(cid:104)(cid:32)(cid:79)(cid:112)(cid:101)(cid:114)(cid:97)(cid:116)(cid:105)(cid:110)(cid:103)(cid:32)(cid:67)(cid:111)(cid:115)(cid:116)(cid:115)

B A R R I C K   G O L D   C O R P O R A T I O N

capital expenditures at the Goldstrike

as the properties in development com-

Property, principally the roaster, which

mence production or the assets under

changed the depreciation basis for the

construction are completed.

autoclaves and mills; a reduction of the

expected life of the Bousquet Mine;

S A L E   O F / P R O V I S I O N   F O R   M I N I N G  

and the start-up of the Pierina Mine.

P R O P E R T I E S

Accordingly, depreciation of $67 per 

In January 1998, the Company sold its

ounce was higher than the $62 per ounce

50% interest in the Doyon Mine for

in 1997 (1996 – $58 per ounce). In 1999,

proceeds of $95 million, a 50% interest

depreciation is expected to be in the 

in the El Coco exploration property

$100-per-ounce range, primarily due to 

and a gold price participation right on

the higher proportion of Pierina pro-

future production above an average 

duction and the amortization of its

spot price of $375 per ounce. The

acquisition costs.

A D M I N I S T R A T I O N

Company recognized a pre-tax gain

of $42 million, principally for the

close-out of the forward sales position

Administration costs of $36 million in

on future Doyon production. However,

1998 were the same as in 1997 ($33 million

a deferred tax provision of $42 million

in 1996). Costs include World Gold

offset the gain.

Council and other industry membership

In September 1997, the Company 

fees of $7 million in 1998. In 1999, admin-

took a non-cash provision of $431 million

istration costs are expected to be slightly

($385 million net of tax) to cover the

lower than in 1998.

I N T E R E S T   E X P E N S E

write-down of the carrying values associ-

ated with the phasing out of ﬁve mines.

The ﬁve mines scheduled for closure were

In 1998, the Company incurred $43 million

the El Indio and Tambo Mines in Chile,

in interest expense ($44 million in 1997),

and the Bullfrog, Mercur and Pinson Mines

relating primarily to the Company’s 

in the United States.

$500 million of debentures. All of the amount

was capitalized to properties in development,

I N C O M E   T A X E S

primarily the Pierina Mine Project. In 

The Company’s average effective tax 

1999, interest is expected to be approximately

rate, before the impact of disposals and

$40 million, of which $10 million is to be

provisions for mining properties, has 

expensed. The remainder will be capitalized

been constant over the past three years at

to assets under construction, princi-

approximately 25% and is expected to

pally the Goldstrike roaster and Pascua.

remain at this level in 1999. Reference is

Capitalization of interest is discontinued

drawn to Note 7 to the Consolidated

when the assets are ready for their intended

Financial Statements for a detailed income

use. The capitalized interest is amortized 

tax reconciliation.

3 4

B A R R I C K   G O L D   C O R P O R A T I O N

E X P L O R A T I O N   A N D   R E S E R V E   D E V E L O P M E N T

Barrick’s exploration and reserve

In 1998, total exploration and reserve

growth strategy is focused on its existing

development expenditures were $87 million,

operating mines and the major gold belts

compared with $109 million in 1997 (1996 –

of North and South America. The strategy

$139 million). During 1998, $50 million

is directed toward ﬁnding multi-million-

was expensed versus $64 million in 1997

ounce gold deposits that will both sustain

(1996 – $66 million). Total expenditures

and increase Barrick’s growth in low-cost

were $17 million higher than plan due to

production.

additional work performed in Chile

In 1998, the Company added 4.8 million

and Argentina on the El Indio Belt and a

ounces of gold to reserves, more than

greater number of business development

replacing the ounces produced during the

opportunities. The level of expenditures 

year, as well as the small decline associated

in any particular year is a function of

with recalculating reserves at a lower gold

programs on existing properties and new

price of $325 per ounce (1997 – $350 per

opportunities or initiatives that present

ounce). The recalculation of reserves at the

themselves during the period.

lower gold price reﬂects the fact that the

The Company has planned an $80 mil-

spot gold price has not traded above the

lion exploration and reserve development

$350 level in the last two years. The

program for 1999, which includes work at

reserves added were of a low-cost nature

the existing mines, the Pascua Property

and are primarily located at the Pascua

and the Dee/Rossi Joint Venture Property

Project and Goldstrike underground.

just north of Goldstrike. Approximately

half of the expenditures are expected to 

be expensed.

19 9 8   E X P L O R A T I O N
(millions of dollars)

19 9 9   E X P L O R A T I O N
(millions of dollars)

19 9 8   R E S E R V E   D E V E L O P M E N T
(millions of dollars)

19 9 9   R E S E R V E   D E V E L O P M E N T
(millions of dollars)

(cid:78)(cid:111)(cid:114)(cid:116)(cid:104)(cid:32)(cid:65)(cid:109)(cid:101)(cid:114)(cid:105)(cid:99)(cid:97)(cid:32)

(cid:83)(cid:111)(cid:117)(cid:116)(cid:104)(cid:32)(cid:65)(cid:109)(cid:101)(cid:114)(cid:105)(cid:99)(cid:97)(cid:32)

(cid:32)(cid:32)(cid:32)(cid:32)(cid:57)(cid:32)(cid:32)

(cid:32)(cid:32)(cid:50)(cid:52)

(cid:66)(cid:117)(cid:115)(cid:105)(cid:110)(cid:101)(cid:115)(cid:115)(cid:32)(cid:68)(cid:101)(cid:118)(cid:101)(cid:108)(cid:111)(cid:112)(cid:109)(cid:101)(cid:110)(cid:116)(cid:32) (cid:32) (cid:32)(cid:49)(cid:55)(cid:32)(cid:32)
(cid:97)(cid:110)(cid:100)(cid:32)(cid:79)(cid:116)(cid:104)(cid:101)(cid:114)

(cid:78)(cid:111)(cid:114)(cid:116)(cid:104)(cid:32)(cid:65)(cid:109)(cid:101)(cid:114)(cid:105)(cid:99)(cid:97)(cid:32)

(cid:83)(cid:111)(cid:117)(cid:116)(cid:104)(cid:32)(cid:65)(cid:109)(cid:101)(cid:114)(cid:105)(cid:99)(cid:97)(cid:32)

(cid:32)(cid:32)(cid:49)(cid:51)(cid:32)(cid:32)

(cid:32)(cid:32)(cid:49)(cid:57)

(cid:66)(cid:117)(cid:115)(cid:105)(cid:110)(cid:101)(cid:115)(cid:115)(cid:32)(cid:68)(cid:101)(cid:118)(cid:101)(cid:108)(cid:111)(cid:112)(cid:109)(cid:101)(cid:110)(cid:116)(cid:32) (cid:32)(cid:32)(cid:32)(cid:56)
(cid:97)(cid:110)(cid:100)(cid:32)(cid:79)(cid:116)(cid:104)(cid:101)(cid:114)

(cid:71)(cid:111)(cid:108)(cid:100)(cid:115)(cid:116)(cid:114)(cid:105)(cid:107)(cid:101)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)

(cid:32) (cid:53)

(cid:80)(cid:97)(cid:115)(cid:99)(cid:117)(cid:97)(cid:32)(cid:80)(cid:114)(cid:111)(cid:106)(cid:101)(cid:99)(cid:116)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:51)(cid:48)

(cid:79)(cid:116)(cid:104)(cid:101)(cid:114)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)

(cid:32)(cid:32)(cid:50)

(cid:71)(cid:111)(cid:108)(cid:100)(cid:115)(cid:116)(cid:114)(cid:105)(cid:107)(cid:101)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:49)(cid:48)

(cid:80)(cid:97)(cid:115)(cid:99)(cid:117)(cid:97)(cid:32)(cid:80)(cid:114)(cid:111)(cid:106)(cid:101)(cid:99)(cid:116)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:50)(cid:57)

(cid:79)(cid:116)(cid:104)(cid:101)(cid:114)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:49)

3 5

B A R R I C K   G O L D   C O R P O R A T I O N

C A S H   F L O W

C A P I T A L   E X P E N D I T U R E S   19 9 8

Cash ﬂow provided by operating activities

Barrick’s capital and development expen-

was $539 million, the highest in the

ditures of $507 million in 1998 were

Company’s history, compared with

according to plan and included $37 million

$470 million in 1997 (1996 – $463 million).

for reserve development. At the Pierina

Operating cash ﬂow is expected to increase

Mine, $248 million, including capitalized

to $700 million in 1999, with an expected

interest of $35 million, was spent on the

13% rise in production to 3.6 million

completion of mine construction. At the

ounces and a 22% decline in cash operat-

Goldstrike Property, $107 million was

ing costs to $125 an ounce. The Company

spent primarily on engineering and initial

will continue to beneﬁt from its Premium

construction of the roaster facility and 

Gold Sales Program, which has locked in 

on increasing long-term ore stockpiles 

a minimum realized price of $385 per

at the Betze-Post Mine. An additional

ounce for its production for 1999 through

$46 million was spent for shaft deepening

2001. Free cash ﬂow is expected to rise to

and development at Meikle and Rodeo.

approximately $200 million, even after

At Pascua, $51 million was incurred for

over $500 million in capital expenditures.

metallurgical and engineering work 

and the purchase of the 9.8% interest in

the Property that the Company did not

already own. The remaining $18 million

was incurred primarily at the Canadian

Properties for underground development.

19 9 8   C A P I T A L E X P E N D I T U R E S  
(millions of dollars)

(cid:80)(cid:105)(cid:101)(cid:114)(cid:105)(cid:110)(cid:97)(cid:32)(cid:77)(cid:105)(cid:110)(cid:101)

(cid:50)(cid:52)(cid:56)

(cid:71)(cid:111)(cid:108)(cid:100)(cid:115)(cid:116)(cid:114)(cid:105)(cid:107)(cid:101)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)

(cid:49)(cid:53)(cid:51)(cid:32)(cid:32)

(cid:80)(cid:97)(cid:115)(cid:99)(cid:117)(cid:97)(cid:32)(cid:80)(cid:114)(cid:111)(cid:106)(cid:101)(cid:99)(cid:116)

(cid:32)(cid:32)(cid:53)(cid:49)(cid:32)(cid:32)

(cid:67)(cid:97)(cid:110)(cid:97)(cid:100)(cid:105)(cid:97)(cid:110)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)

(cid:32)(cid:32)(cid:32)(cid:49)(cid:56)

(cid:82)(cid:101)(cid:115)(cid:101)(cid:114)(cid:118)(cid:101)(cid:32)(cid:68)(cid:101)(cid:118)(cid:101)(cid:108)(cid:111)(cid:112)(cid:109)(cid:101)(cid:110)(cid:116)(cid:32) (cid:32)(cid:32)(cid:51)(cid:55)

(cid:53)(cid:51)(cid:57)

(cid:51)(cid:50)

(cid:53)(cid:48)(cid:55)

(cid:53)(cid:48)(cid:50)

(cid:49)(cid:49)(cid:55)

(cid:52)(cid:54)(cid:51)

(cid:56)(cid:57)

(cid:52)(cid:55)(cid:48)

(cid:57)(cid:56)

(cid:51)(cid:55)(cid:54)

(cid:49)(cid:48)(cid:52)

(cid:51)(cid:56)(cid:53)

(cid:51)(cid:55)(cid:52)

(cid:51)(cid:55)(cid:50)

(cid:50)(cid:55)(cid:50)

(cid:50)(cid:48)(cid:48)

(cid:57)(cid:52)

(cid:57)(cid:53)

(cid:57)(cid:54)

(cid:57)(cid:55)

(cid:57)(cid:56)

O P E R A T I N G C A S H F L O W
(millions of dollars)

(cid:70)(cid:114)(cid:101)(cid:101)(cid:32)(cid:67)(cid:97)(cid:115)(cid:104)(cid:32)(cid:70)(cid:108)(cid:111)(cid:119)

(cid:67)(cid:97)(cid:112)(cid:105)(cid:116)(cid:97)(cid:108)(cid:32)(cid:69)(cid:120)(cid:112)(cid:101)(cid:110)(cid:100)(cid:105)(cid:116)(cid:117)(cid:114)(cid:101)(cid:115)

3 6

B A R R I C K   G O L D   C O R P O R A T I O N

C A P I T A L   E X P E N D I T U R E S   19 9 9

D I V I D E N D S

For 1999, capital expenditures are estimated

During 1998 the Company paid dividends

at $520 million, including reserve devel-

of $0.18 per share compared with $0.16 per

opment of $40 million. Of the $380 million

share in 1997 and $0.14 per share in 1996.

planned for the Goldstrike Property,

$250 million is for the roaster facility and

R I S K   M A N A G E M E N T

$85 million for deferred stripping and

replacement of mine equipment at Betze-

Post. At Pierina, $50 million is to be spent

for the ﬁrst expansion of the heap leach

pad and for additional mine equipment

required for an expansion of the Mine. At

Pascua, $40 million is to be spent on

engineering and infrastructure work. A

ﬁnal go ahead on the Project is expected

during the summer. The additional capital

required for mine development is not

incorporated in this total. The remaining

expenditures of $10 million are for the

Canadian underground mines. The 1999

capital expenditure programs will be

funded from cash ﬂow from operations

and existing cash balances.

19 9 9   C A P I T A L E X P E N D I T U R E S  
(millions of dollars)

(cid:71)(cid:111)(cid:108)(cid:100)(cid:115)(cid:116)(cid:114)(cid:105)(cid:107)(cid:101)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:51)(cid:56)(cid:48)

(cid:80)(cid:105)(cid:101)(cid:114)(cid:105)(cid:110)(cid:97)(cid:32)(cid:77)(cid:105)(cid:110)(cid:101)(cid:32)

(cid:80)(cid:97)(cid:115)(cid:99)(cid:117)(cid:97)(cid:32)(cid:80)(cid:114)(cid:111)(cid:106)(cid:101)(cid:99)(cid:116)(cid:32)

(cid:32)(cid:32)(cid:32)(cid:53)(cid:48)

(cid:32)(cid:32)(cid:32)(cid:52)(cid:48)

(cid:67)(cid:97)(cid:110)(cid:97)(cid:100)(cid:105)(cid:97)(cid:110)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)

(cid:32)(cid:32)(cid:32)(cid:49)(cid:48)

(cid:82)(cid:101)(cid:115)(cid:101)(cid:114)(cid:118)(cid:101)(cid:32)(cid:68)(cid:101)(cid:118)(cid:101)(cid:108)(cid:111)(cid:112)(cid:109)(cid:101)(cid:110)(cid:116)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:32)(cid:52)(cid:48)

Financial Risk

Barrick actively manages its exposure to

gold prices, currencies, interest rates 

and by-product commodity prices. The

Company uses a variety of hedging

products to mitigate these risks. These

instruments are used solely for hedging

purposes related to the Company’s speciﬁc

exposures and not for trading purposes.

Operational Risk

Barrick continually assesses the mining 

risks encountered at each of its operations.

It reduces both the likelihood and the 

potential severity of such risks through its 

high operational standards, emphasis on 

employee training, and the risk management

and loss-control programs in place at each

mine site. The Company also maintains

adequate insurance at all times to cover

normal business risks.

Further, operational risk is minimized

through both asset and reserve diversiﬁ-

cation. Currently, approximately 50% of

the Company’s assets and 60% of its

reserves are in North America, the balance

being in South America.

3 7

B A R R I C K   G O L D   C O R P O R A T I O N

The political risks of operating in Chile

Year 2 0 0 0

and Peru were assessed and management

The Year 2000 Issue (Y2K) could poten-

is comfortable that there is little risk to

tially affect most companies. The issue is

corporate assets.

that many computers and date-sensitive

In each country where it has operations,

devices that utilize microprocessors may

Barrick is subject to various levels of gov-

be unable to correctly process dates that

ernment control and regulation, and is thus

occur after 1999. The Company has

exposed to the risk of potentially adverse

reviewed, and continues to review, possible

changes. The Company endeavors to ensure

effects of this issue on its ﬁnancial and

that it is at all times in compliance with

operating systems. In 1998, the Board of

current laws, and it seeks to foster an equi-

Directors was presented with a Year 2000 

table future climate through both direct

Project Plan to guide the Company’s over-

and industry-wide contact with appropriate

all approach to assessing the impact of the

regulatory bodies. Barrick draws on 

Y2K problem on Barrick and its operations

the expertise of its management team, its

and to minimize the potential risks and

Board of Directors and International

exposures. Each of the Company’s sites

Advisory Board, and a broad range of

has been assigned responsibility for

ﬁnancial advisors to help assess risk 

managing its own Y2K project, with assis-

before making an investment in a partic-

tance and direction provided by the

ular country.

Corporate Year 2000 Project Ofﬁce.

19 9 8   P R O D U C T I O N  
B Y   P R O P E R T Y

19 9 8   R E S E R V E S  
B Y   P R O P E R T Y

(cid:71)(cid:111)(cid:108)(cid:100)(cid:115)(cid:116)(cid:114)(cid:105)(cid:107)(cid:101)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)(cid:40)(cid:55)(cid:51)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:80)(cid:105)(cid:101)(cid:114)(cid:105)(cid:110)(cid:97)(cid:32)(cid:77)(cid:105)(cid:110)(cid:101)(cid:32)(cid:40)(cid:50)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:67)(cid:97)(cid:110)(cid:97)(cid:100)(cid:105)(cid:97)(cid:110)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:40)(cid:49)(cid:48)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:79)(cid:116)(cid:104)(cid:101)(cid:114)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:40)(cid:49)(cid:53)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:71)(cid:111)(cid:108)(cid:100)(cid:115)(cid:116)(cid:114)(cid:105)(cid:107)(cid:101)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:121)(cid:32)(cid:40)(cid:53)(cid:51)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:80)(cid:97)(cid:115)(cid:99)(cid:117)(cid:97)(cid:32)(cid:80)(cid:114)(cid:111)(cid:106)(cid:101)(cid:99)(cid:116)(cid:32)(cid:40)(cid:50)(cid:55)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:80)(cid:105)(cid:101)(cid:114)(cid:105)(cid:110)(cid:97)(cid:32)(cid:77)(cid:105)(cid:110)(cid:101)(cid:32)(cid:40)(cid:49)(cid:52)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:67)(cid:97)(cid:110)(cid:97)(cid:100)(cid:105)(cid:97)(cid:110)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:40)(cid:51)(cid:37)(cid:41)(cid:32)(cid:32)

(cid:79)(cid:116)(cid:104)(cid:101)(cid:114)(cid:32)(cid:80)(cid:114)(cid:111)(cid:112)(cid:101)(cid:114)(cid:116)(cid:105)(cid:101)(cid:115)(cid:32)(cid:40)(cid:51)(cid:37)(cid:41)(cid:32)(cid:32)

3 8

B A R R I C K   G O L D   C O R P O R A T I O N

Barrick has retained specialized external

difﬁculty of concluding a negotiation on

consultants to assist the Project Ofﬁce and

terms that the Company considers

various operational locations with related

acceptable. However, a number of factors

Y2K compliance, project implementation,

strengthen Barrick’s competitive position.

remediation, and risk management. By the

It is an entrepreneurial company, with the

end of 1998, all sites in the United States,

ﬁnancial and operational strength required

Canada and Peru – the location of the

to move quickly and effectively as the

Company’s principal operations – had

situation warrants.

developed formal Y2K Plans and were

Barrick also operates from a position of

progressing according to schedule. Inven-

strength through the quality of its people.

tories and analyses of internal equipment

The Company seeks out the best people

and systems are largely complete with

from around the world, and retains 

follow-up of remaining items to be com-

them through high corporate standards of

pleted by the end of the second quarter 

operation, the professional opportunities

of 1999. No signiﬁcant non-compliance

that it provides, and excellent remuneration.

has been identiﬁed to date at any of

Barrick has one of the lowest turnover 

the Company’s mines or process plants.

rates in the industry.

Generally, the risk of internal failures 

is expected to be low. Cost incurred and 

O U T L O O K  

to be incurred is expected to total

Barrick has entered a new era of growth,

approximately $2 million. Review of

which will gain momentum in 1999 and

external dependencies has revealed that

beyond. In the face of the lowest gold prices

all sites will be exposed to disruption if

in two decades, Barrick is excelling. In 

there is widespread and prolonged

1998, the Company excelled by producing

interruption of electricity and telecom-

more gold at lower costs and greater proﬁt.

munications services. While it is

In 1999, Barrick is building strength upon

recognized that Barrick has little control

strength, with production expected to 

over these services, the focus in 1999 

reach a record 3.6 million ounces of gold.

will be on contingency planning, which 

And as production is rising, costs should 

is expected to be completed by mid-

fall to an industry low of $125 per ounce.

year with practice drills carried out 

The platform for continued growth 

during the third quarter.

in low-cost production is a reserve base

Competitive Env ironment

Barrick competes with other mining

companies for exploration properties, for

joint-venture agreements and for the

acquisition of attractive gold companies.

Such competition could increase the

that is unrivaled in the industry. Barrick’s

reserves stand at 51.5 million ounces of

gold, located on three of the best gold belts

in the Americas. The high quality of those

reserves is demonstrated by the fact that

48 million ounces are proﬁtable even at 

a gold price of $300 per ounce.

3 9

B A R R I C K   G O L D   C O R P O R A T I O N

As for future growth, no other com-

reserves and resources, which today

pany has a comparable line-up of new,

stand at 20 million ounces. As a 

low-cost gold mines and projects:

Mine, Pascua is expected to produce

1. The Pierina Mine in Peru is expected

gold at a cash operating cost in the

to increase production to 835,000

early years of $125 per ounce.

ounces at $45 per ounce.

4. With the proposed Sutton transaction,

2. The Meikle Mine on the Goldstrike

Barrick gains a world-class asset in

Property should produce 1 million

what is emerging as one of the most

ounces at $75 per ounce in 1999.

exciting new gold districts anywhere.

Furthermore, the potential to expand

underground reserves is excellent in 

a mile-long corridor extending from

the Meikle Mine south through the

Grifﬁn and Rodeo deposits.

3. The Pascua Project in Chile and

Argentina continues to expand

(cid:51)(cid:46)(cid:55)

(cid:49)(cid:57)(cid:51)

(cid:51)(cid:46)(cid:54)

(cid:49)(cid:56)(cid:50)

(cid:49)(cid:54)(cid:48)

(cid:49)(cid:50)(cid:53)

(cid:49)(cid:50)(cid:53)

(cid:51)(cid:46)(cid:50)

(cid:51)(cid:46)(cid:49)

(cid:51)(cid:46)(cid:48)

(cid:50)(cid:46)(cid:48)

(cid:57)(cid:54)

(cid:57)(cid:55)

(cid:57)(cid:56)

(cid:57)(cid:57)(cid:69)

(cid:50)(cid:48)(cid:48)(cid:48)(cid:69)

(cid:57)(cid:54)

(cid:57)(cid:55)

(cid:57)(cid:56)

(cid:57)(cid:57)(cid:69)

(cid:50)(cid:48)(cid:48)(cid:48)(cid:69)

G O L D P R O D U C T I O N
(millions of ounces)

C A S H   O P E R A T I N G   C O S T S
(dollars per ounce)

4 0

Furthermore, the Premium Gold Sales

Program Barrick developed ensures that

the Company maximizes the revenue

earned on every ounce of gold produced

in any gold market. Currently, Barrick 

has 11.5 million ounces in the program,

guaranteeing a minimum realized price 

of $385 over the next three years.

The Company’s positive outlook for

growth is underpinned by a strong balance

sheet. Barrick has the only “A” credit rating

in the gold business, over $400 million in

cash and no debt payments due until 2007.

In 1999, the combination of rising

production and falling costs, and the

beneﬁts of the Premium Gold Sales

Program are expected to generate record

earnings and cash ﬂow for the Company.

These strong money ﬂows, backed by 

the strongest balance sheet in the gold

industry, allow Barrick to go forward 

with certainty to develop or acquire new

low-cost production.

And ﬁnally, Barrick has a team of

skilled and dedicated men and women, all

of whom are committed to achieving 

a singular goal. That goal is increasing

earnings and cash ﬂow per share, which

is the only way to build share value.

B A R R I C K   G O L D   C O R P O R A T I O N

CON SOLIDATED STATE M ENTS OF INCOM E

Barrick Gold Corporation
for the years ended December 31, 1998, 1997 and 1996
(in millions of United States dollars except per share data)

Revenues
Gold sales 
Interest and other income

Costs and expenses
Operating
Depreciation and amortization
Administration
Exploration
Interest on long-term debt
Gain on sale of/provision for mining properties (note 8)

Income (loss) before taxes
Income taxes (note 7)

Net income (loss) for the year

Net income (loss) per share (note 6)
Basic

Fully diluted

1998

1997

1996

$ 1,287
11

1,298

595
216
36
50
–

(42)

855

443
(142)

$ 1,284
10

1,294

655
188
36
64
–

431

1,374

(80)
(43)

$ 1,299
19

1,318

691
183
33
66
10
45

1,028

290
(72)

$  301

$ (123)

$  .218

$  0.80

$  0.79

$ (0.33)

$ (0.33)

$  0.60

$  0.60

CON SOLIDATED STATE M ENTS OF RETAINED E ARNINGS

Barrick Gold Corporation
for the years ended December 31, 1998, 1997 and 1996 
(in millions of United States dollars)

Retained earnings at beginning of year
Net income (loss)
Dividends (note 6)

Retained earnings at end of year

See accompanying notes to consolidated ﬁnancial statements.

$ 

1998

,960
301
(68)

$ 1,193

1997

$ 1,143
(123)
(60)

$  960

1996

$  976
218
(51)

$ 1,143

4 1

B A R R I C K   G O L D   C O R P O R A T I O N

CON SOLIDATED STATE M ENTS OF CASH FLOW

Barrick Gold Corporation
for the years ended December 31, 1998, 1997 and 1996
(in millions of United States dollars)

Cash provided by (used in) operating activities
Net income (loss)
Non-cash items:

Depreciation and amortization
Deferred income taxes
Gain on sale of /provision for mining properties
Other

Cash provided by (reinvested in) working capital
Bullion settlements and other receivables
Inventories
Accounts payable and accrued liabilities

Cash provided by operating activities

Cash provided by (used in) development activities
Property, plant and equipment
Sale (acquisition) of mining properties
Other

Cash (used in) development activities

Cash provided by (used in) ﬁnancing activities
Capital stock (note 6)
Long-term obligations

Proceeds
Repayments

Dividends

Cash provided by (used in) ﬁnancing activities

Increase (decrease) in cash and equivalents
Cash and equivalents at beginning of year

Cash and equivalents at end of year

Cash and equivalents comprise:

Cash
Short-term deposits

See accompanying notes to consolidated ﬁnancial statements.

4 2

1998

1997

1996

$ 301

$ (123)

$  218

216
57
(42)
5

537

(10)
(14)
26

539

(507)
170
(25)

(362)

35

–
(20)
(68)

(53)

124
292

$  416

$

21
395

$ 416

188
(42)
431
5

459

37
(5)
(21)

470

(372)
–
4

(368)

6

500
(501)
(60)

(55)

47
245

$ 292

$

11
281

$  292

183
14
45
(2)

458

17
(22)
10

463

(374)
(422)
(23)

(819)

22

500
(154)
(51)

317

(39)
284

$  245

$  16
229

$  245

B A R R I C K   G O L D   C O R P O R A T I O N

CON SOLIDATED BA L ANCE SHEETS

Barrick Gold Corporation
As at December 31, 1998 and 1997 
(in millions of United States dollars)

Assets

Current assets
Cash and equivalents
Bullion settlements and other receivables
Inventories (note 2)

Property, plant and equipment (note 3)
Other assets

Liabilities

Current liabilities
Accounts payable and accrued liabilities
Current portion of long-term obligations (note 5)

Long-term debt (note 4)
Reclamation and closure liabilities (note 5)
Deferred income taxes 

Shareholders’ equity

Capital stock (note 6)
Retained earnings

Commitments and contingencies (note 9)
See accompanying notes to consolidated ﬁnancial statements.

Signed on behalf of the Board

Peter Munk (signed)
Director

C. William D. Birchall (signed)
Director

4 3

1998

1997

$  416
89
106

611
3,991
53

$ 4,655

$  213
20

233
500
128
202

1,063

2,399
1,193

3,592

$  292
62
92

446
3,824
36

$ 4,306

$  163
30

193
500
144
145

982

2,364
960

3,324

$ 4,655

$ 4,306

B A R R I C K   G O L D   C O R P O R A T I O N

NOTES TO CON SOLIDATED FINANCIA L STATE M ENTS

Barrick Gold Corporation (tabular dollar amounts in millions of United States dollars)

1. A ccounting Poli cies

These consolidated ﬁnancial statements are prepared 
in accordance with accounting principles generally
accepted in Canada. As described in note 10, these
principles differ in certain respects from principles 
and practices generally accepted in the United States.
Summarized below are those policies considered
particularly signiﬁcant for the Company. References 
to the Company included herein mean the Company 
and its consolidated subsidiaries.

The United States dollar is the principal currency of
the Company’s business; accordingly, these consolidated
ﬁnancial statements are expressed in United States dollars.

A .

N A T U R E   O F   O P E R A T I O N S

The Company is engaged in gold mining and related
activities including exploration, development, mining and
processing in the United States, Canada, Chile and Peru.

B .

U S E   O F   E S T I M A T E S

The preparation of ﬁnancial statements in conformity 
with generally accepted accounting principles requires
management to make estimates and assumptions that 
affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date 
of the ﬁnancial statements and the reported amounts 
of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

C .

B A S I S   O F   C O N S O L I D A T I O N

These consolidated ﬁnancial statements include the
accounts of the Company and its subsidiaries.

D .

T R A N S L A T I O N   O F   F O R E I G N   C U R R E N C I E S

The United States dollar is the functional currency of
all of the Company’s operations which are classiﬁed as
integrated for foreign currency translation purposes.
Under the temporal method, translation gains or 
losses are included in the determination of net income.

E .

C A S H   A N D   E Q U I V A L E N T S

Cash and equivalents comprise cash, term deposits and
treasury bills, with original maturity dates of less than 
90 days.

F.

I N V E N T O R I E S

Gold in process and mine operating supplies are valued 
at the lower of average cost and net realizable value.

G .

P R O P E R T Y,   P L A N T   A N D   E Q U I P M E N T

(i) Propert y acquisition and deferred mine costs

Property acquisition and deferred mine costs are recorded
at cost and amortized by the units of production method
based on estimated recoverable ounces of gold. Estimated
recoverable ounces include proven and probable reserves
and a component of mineralized material.

(ii) Build ings and equipment

Buildings and equipment are recorded at cost and
depreciated, net of residual value, using the straight-line
method based on the estimated useful lives of the assets.
The maximum estimated useful life of buildings and mill
equipment is 25 years and of mine equipment is 15 years.
Repairs and maintenance expenditures are charged 
to operations; major improvements and replacements
which extend the useful life of an asset are capitalized 
and depreciated over the remaining estimated useful 
life of that asset.

4 4

B A R R I C K   G O L D   C O R P O R A T I O N

(iii) Deferred stripping costs

Mining costs associated with waste rock removal are
deferred and charged to operating expenses over the life 
of the mine.

(iv) Properties in development

Upon determination that a mineral property can be eco-
nomically developed, costs incurred are capitalized until 
the assets are put in service, at which time the capitalized
costs are depreciated in accordance with the policies
described above.

Financing costs, including interest, are capitalized 
on the basis of expenditures incurred for the acquisition
and development of projects, without restriction to
speciﬁc borrowings for these projects, while the projects
are actively being prepared for proposed production.
Capitalization is discontinued when the asset is ready for 
its intended use.

(v) Exploration properties

Mineral exploration expenditures are expensed as
incurred. Property acquisition costs relating to explora-
tion properties and expenditures incurred on properties
identiﬁed as having development potential are deferred 
on a project basis until the viability of the project is
determined. Costs associated with economically viable
projects are depreciated and amortized in accordance 
with the policies described above. If a project is not 
viable, the accumulated project costs are charged to opera-
tions in the year in which that determination is made.

(v i) Propert y evaluations

The Company reviews and evaluates the recoverability of
its properties when events or changes in circumstances
indicate that the carrying amount of a property may not
be recoverable. Estimated future net cash ﬂows, on an
undiscounted basis, from a property are calculated using
estimated recoverable ounces of gold (considering current
proven and probable reserves and mineralization expected
to be classiﬁed as reserves); estimated future gold price

realization (considering historical and current prices,
price trends and related factors); and operating, capital
and reclamation costs. Reductions in the carrying value 
of property, plant and equipment, with a corresponding
charge to earnings, are recorded to the extent that
the estimated future net cash ﬂows are less than the
carrying value.

Estimates of future cash ﬂows are subject to risks 
and uncertainties. It is reasonably possible that changes 
in circumstances could occur which may affect the recov-
erability of the Company’s properties.

H .

D E R I V A T I V E   F I N A N C I A L   I N S T R U M E N T S  

(i) Commod it y and foreign exchange contracts

The Company enters into derivative ﬁnancial instruments
to reduce the risk associated with price volatility of the
commodities and currencies it is exposed to (“hedging
transactions”). The instruments used include spot
deferred contracts, commodity options and currency
swaps. The Company does not hold or issue derivative
ﬁnancial instruments for trading purposes. Hedging
transactions are matched to anticipated future production
for commodities and cash ﬂows for currencies and are
designated in the accounting records as hedges. The
Company regularly monitors its commodity and currency
exposures and ensures that contracted amounts do not
exceed the amounts of underlying exposures.

Primarily, the Company enters into hedging transac-

tions, which establish a price for future gold production.
Contracted prices for spot deferred sales are recognized 
in gold sales as the designated production is delivered 
to meet commitments. Long-term written call options,
which can be converted into spot deferred contracts 
at the strike price in the event the option is exercised, are
designated and accounted for as hedges of future
production. Premiums received are recognized in gold
sales at the designated date. Similar contracts are used 
to hedge by-products such as silver and copper.

4 5

B A R R I C K   G O L D   C O R P O R A T I O N

In the event of early settlement of hedging transac-

J .

I N C O M E   T A X E S

The Company records income and mining taxes on the tax
allocation basis. Differences between amounts reported 
for tax and accounting purposes may result in deferred
income and mining taxes. Deferred income and mining
taxes relate primarily to the depreciation and amortization
of property, plant and equipment costs.

Provisions are made for witholding taxes payable 
on anticipated repatriation of unremitted earnings of the
Company’s foreign subsidiaries. No provision is 
made for unremitted earnings which have been indeﬁ-
nitely reinvested.

In December 1997, the CICA Accounting Standards
Board issued Section 3465 Income Taxes which adopts the
liability approach based on the temporary differences
method of accounting for income taxes. The standard is
similar in many respects to the United States accounting
standard FAS No. 109. The new standard, which is effective
as of 2000, is currently being reviewed. The Company does
not expect it to have a material effect on net income.

1998

$ 73
33

$ 106

$ 206

1997

$  57
35

$ 92

$ 105

tions, gains or losses are deferred and brought into 
income at the delivery dates originally designated. Where
the underlying transactions are no longer expected to
occur, with the effect that a hedge no longer exists,
unrealized gains or losses are recognized in income at 
the point such a determination is made.

Cash ﬂows arising in respect of hedging transactions
are recognized under cash ﬂow from operating activities.

(ii) Ot her derivative financial instruments

The Company enters into derivative ﬁnancial instruments
to manage the interest returns received on its spot
deferred hedging program. The instruments, which
primarily comprise a portfolio of total return swaps, are
accounted for as long-term portfolio investments, and
accordingly, are carried at cost less any provisions for 
other than temporary impairment. Gains and losses are
recognized in the income statement upon realization 
or at the maturity of the instrument.

I .

R E V E N U E   R E C O G N I T I O N

Gold poured, in transit and at reﬁneries, is recorded at 
net realizable value and included in bullion settlements
and other receivables and gold sales. Revenue from the 
sale of by-products such as silver and copper is credited
against operating costs.

2. Inv e ntories

Current:

Gold in process
Mine operating supplies

Non-current (included in property, plant and equipment):

Ore in stockpiles

4 6

B A R R I C K   G O L D   C O R P O R A T I O N

3. Pr op e r t y, Plant and Equipme nt

Cost Accumulated
Depreciation

$ 2,440
985
860

306
227

$ 461
366
–

–
–

1998

Net

$ 1,979
619
860

306
227

Cost Accumulated
Depreciation

$ 1,347
962
1,643

268
250

$ 349
297
–

–
–

1997

Net

$  998
665
1,643

268
250

$ 4,818

$ 827

$ 3,991

$ 4,470 

$ 646

$ 3,824

Property acquisition and 
deferred mine costs
Buildings and equipment
Properties in development
Deferred stripping costs and 

ore in stockpiles
Exploration properties

4. L ong-Te rm D eb t 

A .

R E V O L V I N G   C R E D I T   F A C I L I T Y

B .

7 1⁄2 %   D E B E N T U R E S

The Company has a credit and guarantee agreement 
(the “Credit Agreement”) with a group of international
banks (the “Lenders”). The Credit Agreement provides 
for the Lenders to make available to the Company 
and subsidiaries designated by it from time to time a 
credit facility in the maximum amount of $1 billion 
or the equivalent amount in Canadian currency. The
Credit Agreement, which is unsecured, has a remaining
term of four years. The facility has an interest rate of
LIBOR plus 0.15% when utilized, and an annual fee of
0.075%. As at December 31, 1998 and 1997, no amounts
were drawn under the Credit Agreement.

On April 22, 1997 the Company issued $500 million of
redeemable, non-convertible debentures. The debentures
bear interest at 71⁄2% per annum, payable semi-annually,
and mature on May 1, 2007.

C .

I N T E R E S T

Interest of $43 million was incurred during the year 
(1997 – $44 million, 1996 – $20 million). Of this amount
$43 million was capitalized to properties in development
(1997 – $44 million, 1996 – $10 million).

5. Re clamati on and Cl osur e Liabili ties 

Estimated reclamation and closure costs are accrued and
charged to income over the estimated life of a mine by the
units of production method based on estimated recov-
erable ounces of gold. Although the ultimate amount of
reclamation and closure costs to be incurred is uncertain,
the Company has estimated the future site reclamation
obligations, which it believes will meet current regulatory
requirements, to be $218 million, $130 million of which

has been accrued to December 31, 1998 (1997 – $140 mil-
lion). Closure costs are estimated at $34 million,
$18 million of which has been accrued to December 31,
1998 (1997 – $34 million). A total of $20 million of these
accruals is included in current liabilities at December 31,
1998 (1997 – $30 million). Future changes, if any, in
regulations and cost estimates may be signiﬁcant and 
will be recognized when applicable.

4 7

B A R R I C K   G O L D   C O R P O R A T I O N

6. Capi tal S to ck

A .

I S S U E D   A N D   O U T S T A N D I N G   S H A R E S

Details of issued and outstanding shares are as follows:

Common shares (millions)

Outstanding at December 31, 1995
Issued during 1996
In part consideration for an exploration property
For cash

Outstanding at December 31, 1996
Issued during 1997 
For cash

Outstanding at December 31, 1997
Issued during 1998
For cash

Outstanding at December 31, 1998

In 1996, the Company acquired the Pierina Property.
As part of the consideration, 14 million shares of the
Company were issued. The Company assigned a value 
of $364 million to the shares as required by generally
accepted accounting principles, based on the quoted
market price for the shares less a 5% discount which
represented the issue costs that would otherwise have 
been incurred.

B .

A U T H O R I Z E D   C A P I T A L

Authorized capital stock of the Company is comprised 
of an unlimited number of common shares, 9,764,929 
First preferred shares, Series A and 9,047,619 Series B,
and 14,726,854 Second preferred shares, Series A.

C .

S H A R E H O L D E R   R I G H T S   P L A N

In 1998, the Company adopted a Shareholder Rights 
Plan (the “Plan”) which will be in effect until the 2002
shareholders’ meeting.

Issued

357

14
2

373

–

373

4

377

Amount

$ 1,972

364
22

2,358

6

2,364

35

$ 2,399

The rights issued under the Plan become exercisable

only when a person, including any party related to them,
acquires, or announces their intention to acquire, 20% 
or more of Barrick’s outstanding common shares without
complying with the “Permitted Bid” provisions or 
without approval of the Board of Directors. Should such 
an acquisition occur, each right would entitle a holder,
other than the acquiring person and persons related to
them, to purchase common shares of Barrick at a 50%
discount to the market price.

A Permitted Bid is a bid made to all shareholders that 
is open for at least 60 days. If at the end of 60 days, at least
50% of the outstanding shares, other than those owned by
the offeror and certain related parties, have been tendered,
the offeror may take up and pay for the shares, but must
extend the bid for a further 10 days to allow other share-
holders to tender.

4 8

B A R R I C K   G O L D   C O R P O R A T I O N

D .

C O M M O N   S H A R E   P U R C H A S E   O P T I O N S

There are common share purchase options outstanding,
expiring at various dates to December 6, 2008. The 
options vest over the ﬁrst four years at a rate of one
quarter each year, beginning in the year subsequent 
to granting and are exercisable over 7 to 10 years.

(shares in millions)

Outstanding at beginning of year 
Granted at an average price of C$29.34

per share (1997 – C$25.08, 1996 – C$40.95)

Exercised at an average price of C$13.98

per share (1997 – C$22.76, 1996 – C$20.09)

Cancelled

Outstanding at end of year

As at December 31, 1998, 9 million (1997 – 13 million,

1996 – 17 million) common shares, beyond those out-
standing at year end, were available for granting of
options. The following is a summary of common share
purchase options:

1998

1997

1996

20

5

(4)
(1)

20

17

4

–
(1)

20

16

3

(2)
–

17

Outstanding and exercisable share purchase options at
December 31, 1998 consisted of 12 million and 6 million
shares respectively with an exercise price range of C$18.19
to C$29.25, and 8 million and 4 million shares respectively
with a price range of C$30.13 to C$44.25.

E .

N E T   I N C O M E   P E R   S H A R E

Net income per share was calculated on the basis of the
weighted average number of common shares outstand-
ing for the year, which amounted to 376 million shares
(1997 – 373 million shares, 1996 – 363 million shares).

Fully diluted net income per share reﬂects the dilutive

effect of the exercise of the common share purchase

options outstanding as at December 31, 1998. The number
of shares for the fully diluted net income per share calcu-
lation was 390 million shares (1997 – 373 million shares,
1996 – 367 million shares).

In 1998, interest on funds which would have been

received had the options been exercised of $8 million,
net of income tax, has been imputed at a rate of 5%.

F.

D I V I D E N D S

In 1998, the Company declared and paid dividends in
United States dollars totaling $0.18 per share (1997 – 
$0.16, 1996 – $0.14 per share).

4 9

B A R R I C K   G O L D   C O R P O R A T I O N

7. In come Tax es

As the Company operates in a specialized industry 
and in several tax jurisdictions, its income is subject to 
varying rates of taxation. Major items causing the
Company’s income tax rate to differ from the Canadian
federal income tax rate of 38% are set out below:

At the Canadian federal income tax rate
Increase (decrease) resulting from:

Resource and depletion allowances
Tax rates of other jurisdictions
Sale of/provision for mining properties 
Operating losses not tax effected
Exploration expenditures not tax effected
Non-deductible depreciation and amortization 

arising from acquisitions

Miscellaneous

Income tax expense

The principal timing differences and 
their tax effect are:

Deferred mining and exploration costs
Depreciation and amortization
Reclamation
Net operating loss

Details of income tax expense by jurisdiction are:

Current:

United States
Canada
Other

Deferred:

United States
Canada
Other

1998

$ 168

(54)
(47)
30
32
6

9
(2)

$ 142

$ 33
33
7
(16)

$ 57

$ 78
6
1

85

8
54
(5)

57

1997

$ (31)

(56)
60
30
30
1

7
2

$ (43

$   (9
(32)
(3)
(16)

$ (42)

$ (82
2
1

85

(23)
(5)
(14)

(42)

1996

$ 110

(43)
(19)
–
–
19

3
2

$ 72

$ 18
(4)
–
–

$ 14

$ 54
4
–

58

9
12
(7)

14

$ 142

$ (43

$ 72

5 0

B A R R I C K   G O L D   C O R P O R A T I O N

8. S egme nt Inf o rmati on

The Company adopted the CICA Accounting Recommen-
dations in Section 1701 Segment Disclosures during the
year. The Company operates in the gold mining industry.
The operations are evaluated and managed on a property
basis. The Goldstrike Property includes the Betze-Post and
Meikle Mines. Canadian properties include the Bousquet
and Holt-McDermott Mines. Other Properties include
operations which have been closed, sold or are being
phased out. The Company’s interest in the Doyon Mine

was sold in January 1998. The pre-tax gain of $42 million
was offset by a deferred tax provision, resulting in no gain
or loss after tax. In September 1997, following a compre-
hensive evaluation of its mining properties, on the basis
set out in note 1(g), the Company took a $385 million
charge to earnings, net of income taxes of $46 million, to
cover the writedown of the carrying values associated with
the El Indio and Tambo Mines in Chile and the Bullfrog,
Mercur and Pinson Mines in the United States.

Revenues

Gold sales

Goldstrike Property
Canadian Properties
Pierina Property
Other Properties

Operating costs

Goldstrike Property
Canadian Properties
Pierina Property
Other Properties

Depreciation and amortization
Goldstrike Property
Canadian Properties
Pierina Property
Other Properties

Gain on sale of (provision for) mining properties – Other Properties

Segment income (loss) before income taxes

Goldstrike Property
Canadian Properties
Pierina Property
Other Properties

Exploration
Corporate expenses, net
Income taxes

Net income (loss)

1998

1997

1996

$  941
124
23
199

$ 1,287

$  920
120
–

244

$ 1,284

$  827
144
–

328

1,299

399
54
3
139

595

117
47
11
41

216

42

425
23
9
61

518
(50)
(25)
(142)

408
51
–

196

655

96
25
–

67

188

(431)

416
44
–

(450)

10
(64)
(26)
(43)

393
64
–

234

691

74
27
–

82

183

(45)

360
53
–

(33)

380
(66)
(24)
(72)

$  301

$   (123)

$  218

5 1

Gold sales by geographic area

United States
Canada
Chile
Peru

Segment capital expenditures
Goldstrike Property
Canadian Properties
Pierina Property
Pascua Property
Other Properties

Identiﬁable assets by geographic area

United States
Peru
Chile
Canada
Other countries

Segment assets

Goldstrike Property
Canadian Properties
Pierina Property
Pascua Property
Other Properties

Total assets for reportable segments

Exploration properties
Cash and equivalents
Other

B A R R I C K   G O L D   C O R P O R A T I O N

1998

1997

1996

$ 953
209
137
–

$ 1,299

$    98
16
19
32
209

$ 374

$ 1,032
124
108
23

$ 1,287

$  158
17
248
79
5

$  507

$ 2,013
1,217
1,034
270
121

$ 4,655

$ 1,615
235
1,212
822
50

3,934
230
416
75

$ 1,036
160
88
–

$ 1,284

$  118
12
103
65
74

$  372

$ 1,886
933
1,023
429
35

$ 4,306

$ 1,546
207
930
733
246

3,662
231
292
121

$ 4,655

$ 4,306

5 2

B A R R I C K   G O L D   C O R P O R A T I O N

9. Commi tme nts and Contingen cies

A .

D E R I V A T I V E   F I N A N C I A L   I N S T R U M E N T S

(i) Commod it y and foreign exchange contracts

As part of its gold hedging program, the Company has
entered into spot deferred contracts with several major
ﬁnancial institutions to deliver 11.5 million ounces of
gold. A spot deferred contract represents a forward sale 
on which contango accrues until the intended delivery 
date of the contract. The rate at which contango accrues 
is determined by LIBOR interest rate less the gold lease
rate existing at the time of each rollover. The contracts
have an average price of $357 per ounce at December 31,
1998. The Company’s expected gold production is fully
hedged over the next two years and it has further con-
tracts in place designated from 2001 to 2004. Delivery
under these spot deferred contracts can be deferred at 
the Company’s option for up to 15 years.

In addition, the Company has entered into long-term
written gold call options in respect of 1.7 million ounces.
The call options have an average strike price of $380 
per ounce and expire at various dates over the period 
from 2000 to 2007. In the event that they are exercised 
at their maturity date, the Company has the intent and
ability to convert them into spot deferred contracts at 
the strike price.

As a portion of the Company’s operating costs and
capital expenditures are denominated in foreign currencies,
it has entered into forward exchange contracts to maintain
its purchasing power relative to the United States dollar.
As at December 31, 1998, the Company has entered into
foreign exchange contracts to purchase C$145 million 
in 1999 at an exchange rate of $0.69 for each Canadian dol-
lar, and an additional C$143 million in the following three
years at $0.71 for each Canadian dollar. The Company has
entered into spot deferred contracts to deliver 19 million
ounces of silver over the next ﬁve years at an average price
of $5.15 per ounce.

(ii) Ot her derivative financial instruments

In connection with the management of the interest com-
ponent of its gold hedging activities, the Company has
entered into derivative ﬁnancial instruments with a total

notional amount of $570 million or approximately 14% 
of the value of the gold spot hedge position of $4.1 billion.
The instruments comprise a portfolio of total return
swaps whose underlying investments are bond indices
with diversiﬁed credit exposure. Total return swaps gener-
ally represent the contractual exchange of LIBOR interest
payments for a return equivalent to the future perfor-
mance of a speciﬁed investment instrument based on a
ﬁxed notional amount. The swaps typically have terms of
either ﬁve or seven years and mature at various times  in
2003 and 2005.

(iii) Fair value of derivative financial inst ruments

The carrying amounts for cash, bullion settlements and
other receivables, accounts payable and accrued liabilities
on the balance sheets approximate fair value. The fair
value of long-term debt is $543 million (1997 – $528 mil-
lion) reﬂecting the decline in interest rates since the debt
was incurred.

The aggregate unrealized gain of the value of the
Company’s commodity and foreign exchange contracts,
based on forward rates, the gold price of $288 per ounce
and the silver price of $5 per ounce as at December 31,
1998 amounted to approximately $735 million (1997 –
$825 million). The fair value of the total return swaps
approximates cost.

(iv) Cred it and market risks

The Company utilizes privately negotiated over-the-
counter derivatives to manage the exposures to
commodity and foreign currency risks, and also to 
manage the interest returns on its gold spot deferred
program. These derivatives include spot deferred
contracts, commodity options and total return swaps,
and involve varying degrees of credit and market risk.

The market risk of the Company’s derivatives arises
principally from potential changes in interest and foreign
exchange rates. The Company manages its market risk 
by maintaining a diversiﬁed portfolio of derivatives.
Credit risk represents the maximum potential
accounting loss due to non-performance by obligors 
and counterparties under the terms of their contracts.

5 3

B A R R I C K   G O L D   C O R P O R A T I O N

The Company manages credit risk by only dealing with
major ﬁnancial institutions that meet its credit rating
standards; by limiting arrangements outstanding with
individual counterparties; and by entering into master
netting agreements which incorporate the right of setoff
and provide for the net settlement of contracts with the
same counterparty in the event of default or other cancel-
lation under the agreement. Credit risk associated with 
the Company’s commodity and foreign exchange contracts
is limited to the amount of unrealized gains at any point in
time. For total return swaps, the amount of credit risk is
equivalent to the value of the underlying investments.

B .

R O Y A L T I E S

The Goldstrike and Pascua Properties are subject to royalty
obligations based on the valuable minerals produced from
the properties and various methods of calculation.

C .

E N V I R O N M E N T A L

The Company’s mining and exploration activities are
subject to various federal, provincial and state laws and
regulations governing the protection of the environment.
These laws and regulations are continually changing and
generally becoming more restrictive. The Company con-
ducts its operations so as to protect public health and the
environment and believes its operations are materially in
compliance with all applicable laws and regulations. The
Company has made, and expects to make in the future,
expenditures to comply with such laws and regulations.

D .

C L A I M S

On April 30, 1998, the Company was added as a defendant
in a class action lawsuit against Bre-X Minerals Ltd., certain
of its directors and ofﬁcers or former directors and ofﬁcers
and others in the United States District Court for the
Eastern District of Texas, Texarkana Division. The class
action alleges, among other things, that statements made
by the Company in connection with its efforts to secure

the right to develop the Busang gold deposit in West
Kalimantan, Indonesia were materially false and mis-
leading and omitted to state material facts relating to 
the preliminary due diligence investigation undertaken 
by the Company in late 1996. The Company believes 
that the claims are without merit.

The Company is from time to time involved in 
various claims, legal proceedings and complaints arising 
in the ordinary course of business. The Company is also
subject to reassessment for income and mining taxes for
certain years. It does not believe that adverse decisions 
in any pending or threatened proceedings related to any
potential tax assessments or other matters, or any amount
which it may be required to pay by reason thereof, will
have a material adverse effect on the ﬁnancial condition 
or future results of operations of the Company.

E .

Y E A R   2 0 0 0   I S S U E

The Year 2000 Issue arises because many computerized
systems use two digits rather than four to identify a year.
Date-sensitive systems may recognize the Year 2000 as
1900 or some other date, resulting in errors when infor-
mation using Year 2000 dates is processed. In addition,
similar problems may occur in some systems which use
certain dates in 1999 to represent something other than a
date. The effects of the Year 2000 Issue may be experienced
before, on, or after January 1, 2000 and if not addressed,
the impact on applications and ﬁnancial reporting may
range from minor errors to signiﬁcant system failure
which could affect the Company’s ability to conduct nor-
mal business operations. The Company has a plan in place
to address the Issue and is presently testing the potential
impact on critical systems of its material operations.
However, it is not possible to be certain that all aspects of
the Year 2000 Issue affecting the Company including those
related to the efforts of counterparties, suppliers or other
third parties, will be fully resolved on a timely basis.

5 4

B A R R I C K   G O L D   C O R P O R A T I O N

10. Dif f e r e n c es fr om Uni te d S tates A ccounting Prin ciples

These consolidated ﬁnancial statements have been prepared
in accordance with accounting principles generally accepted
in Canada. The Company monitors differences between
Canadian and US GAAP, none of which have a material
effect on the ﬁnancial statements except as noted below.

A .

A C Q U I S I T I O N S

Acquisitions would have been accounted for based on the
US GAAP method used to value shares issued as consider-
ation. In determining the value of the shares exchanged 
in acquisitions, for accounting purposes under US GAAP
the Company has used the unadjusted quoted market
price of its shares based on the understanding that
US GAAP, including the Securities and Exchange Commis-
sion requirements, only permits adjustments to the 
quoted market price in very limited circumstances, such 
as where the holders are restricted in their ability to sell
the securities exchanged.

In addition, acquisitions would have been accounted
for gross of underlying tax effects of treating non-deductible
acquisition costs as temporary differences, as required by
FAS No. 109, with an offsetting credit to deferred income
taxes. This method of accounting would have no effect on
the Company’s reported net income for the year.

Following a further evaluation of the Company’s
mining properties on the basis set out in note 1(g) for the
purposes of the 1997 annual ﬁnancial statements and
reﬂecting a further decline in the market price for gold
during the fourth quarter of 1997, a $340 million charge,
net of tax of $60 million, was taken to US GAAP earnings
to write down the carrying value associated with the poten-
tial of mineral exploration properties which had been
carried at higher amounts under US GAAP as set out above.

B .

S T O C K - B A S E D   C O M P E N S A T I O N

US GAAP encourages but does not require companies to
include in compensation cost the fair value of stock
options granted to employees. A company that does not
adopt the fair-value method must disclose the cost of stock
compensation awards, at their fair value, at the date the
award is granted. The fair value of the Company’s options
was estimated using the Black-Scholes model with
assumptions of a 41⁄2- to a 6-year expected term, 30%
volatility, interest rates ranging from 4.8% to 7.4% and 

an expected dividend yield ranging from 0.44% to 0.95%.
Under US GAAP the cost of stock compensation for the
year ended December 31, 1998 would be $22 million (1997 –
$16 million). The resulting pro forma net income and
income per share for the year ended December 31, 1998 is
$279 million and $0.74 respectively (1997 – net loss of
$478 million and loss per share of $1.28).

C .

D E F E R R E D   T A X   L I A B I L I T I E S

The amount of unrecognized deferred tax liability for
temporary differences related to the Company’s invest-
ments in the United States and Chile, which are essentially
permanent in duration, is $94 million (1997 – $88 million).
Net deferred tax assets include $49 million relating to

operating loss carry forwards, the recognition of which 
is based on the Company’s judgment regarding its ability
to utilize the related tax losses against future income.

Operating loss carry forwards amount to $659 mil-

lion, of which $443 million do not expire and $216 million
expire at various times over the next 2 to 20 years.

The components of the Company’s deferred tax liability at
December 31 are as follows:

Assets

United States
Canada
Chile
Peru and other

Total

Valuation allowances
United States
Canada
Chile
Peru and other

Total

Property, plant and equipment

United States
Canada
Chile
Peru and other

Total

1998

1997

$ (75
25
72
14

$

74
25
59
3

186

161

$ (32)
(20)
(50)
(3)

$ (32)
(20)
(30)
(3)

(105)

(85)

$ (177)
(116)
(72)
(100)

$ (175)
(100)
(82)
(100)

(465)

(457)

Total deferred income tax liability

$ (384)

$ (381)

5 5

B A R R I C K   G O L D   C O R P O R A T I O N

D .

B A L A N C E   S H E E T S

The following summarizes the balance sheet amounts 
in accordance with US GAAP where different from the 
amounts reported under Canadian GAAP:

Property, plant and equipment
Deferred income taxes
Shareholders’ equity

1998

1997

Canadian
GAAP

United States
GAAP

Canadian
GAAP

United States
GAAP

$ 3,991
202
3,592

$ 4,124
384
3,543

$ 3,824 
145
3,324

$ 4,008
381
3,270

E .

I N C O M E   S T A T E M E N T S

The following summary sets out the adjustment to the 
Company’s reported net loss in 1997 in order to conform 
to accounting principles generally accepted in the 
United States:

Net income (loss) for the year as reported
Provision for exploration properties

Net income (loss) for the year based on United States

accounting principles

Net income (loss) per share for the year (dollars)

Basic 
Fully diluted

1998

$ .301
–

1997

$ (123)
(340)

$ .301

$ (463)

$ 0.80
$ 0.79

$ (1.24)
$ (1.24)

1996

$ 218
–

$ 218

$ 0.60
$ 0.60

F.

N E W   S T A N D A R D S

The Company adopted FAS No. 130 “Reporting Compre-
hensive Income” during the year. There are no material
differences between the Company’s US GAAP net income
as reported and its comprehensive income as deﬁned
by the standard. Accordingly, a separate statement of
comprehensive income has not been presented.

In June 1998, the Financial Accounting Standards

Board issued FAS No. 133 “Accounting for Derivative
Instruments and Hedging Activities” which will be effec-
tive for the Company’s 2000 ﬁscal year. Under the new
standard, companies will be required to record derivatives

on the balance sheet as assets or liabilities measured at fair
value. For those derivatives representing effective hedges 
of risks and exposures, unrealized gains or losses resulting
from changes in the fair values will be presented as a com-
ponent of comprehensive income as deﬁned by FAS No. 130.
To the extent certain derivatives do not represent effective
hedges, unrealized gains or losses will be included in the
income statement for US GAAP purposes. The Company 
is currently reviewing the standard but has not yet fully
determined the impact it will have on its reported
US GAAP ﬁnancial information.

5 6

B A R R I C K   G O L D   C O R P O R A T I O N

M A N A G E M E N T   R E S P O N S I B I L I T Y   F O R   F I N A N C I A L   S T A T E M E N T S

The accompanying consolidated ﬁnancial statements 
and all of the data included in this annual report have 
been prepared by and are the responsibility of the Board 
of Directors and Management of the Company. The
consolidated ﬁnancial statements have been prepared 
in accordance with accounting principles generally
accepted in Canada and reﬂect Management’s best
estimates and judgments based on currently available
information. The Company has developed and maintains 
a system of internal accounting controls in order to
ensure, on a reasonable and cost effective basis, the
reliability of its ﬁnancial information.

The consolidated ﬁnancial statements have been 
audited by PricewaterhouseCoopers,  Chartered
Accountants. Their report outlines the scope of
their examination and opinion on the consolidated
ﬁnancial statements.

Jamie C. Sokalsky (signed)
Senior Vice President and Chief Financial Ofﬁcer
Toronto, Canada
March 3, 1999

A U D I T O R S ’   R E P O R T   T O   T H E   S H A R E H O L D E R S   O F   B A R R I C K   G O L D   C O R P O R A T I O N

We have audited the consolidated balance sheets of
Barrick Gold Corporation as at December 31, 1998 and
1997 and the consolidated statements of income, retained
earnings and cash ﬂow for each of the three years in the
period ended December 31, 1998. These ﬁnancial state-
ments are the responsibility of the Company’s manage-
ment. Our responsibility is to express an opinion on 
these ﬁnancial statements based on our audits.

We conducted our audits in accordance with generally

accepted auditing standards in Canada. Those standards
require that we plan and perform an audit to obtain reason-
able assurance whether the ﬁnancial statements are free 
of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and
disclosures in the ﬁnancial statements.

An audit also includes assessing the accounting

principles used and signiﬁcant estimates made by
management, as well as evaluating the overall ﬁnancial
statement presentation.

In our opinion, these consolidated ﬁnancial state-
ments present fairly, in all material respects, the ﬁnancial
position of the Company as at December 31, 1998 and
1997 and the results of its operations and its cash ﬂows for
each of the three years in the period ended December 31,
1998 in accordance with accounting principles generally
accepted in Canada.

PricewaterhouseCoopers Chartered Accountants (signed)
Toronto, Canada
January 29, 1999

5 7

B A R R I C K   G O L D   C O R P O R A T I O N

RESERVES AND GOLD MINERA LIZED M ATERIA L

The table on the next page sets forth Barrick’s interest 
in the total proven and probable gold reserves at each
property, based on a gold price of $325 per ounce 
(1997 – $350 per ounce). For deﬁnitions of proven and
probable reserves and gold mineralized material, see
Deﬁnitions, below.

The proven and probable gold reserves at the Goldstrike,

Pierina and Pascua Properties, which represent 94% of
the Company’s estimated total contained ounces as at
December 31, 1998, have been audited by Pincock,
Allen & Holt, a division of Hart Crowser, Inc., an inde-
pendent international mineral consulting ﬁrm.

The Company has carefully prepared and veriﬁed the
ore reserve ﬁgures and believes that its method of estimating
reserves has been veriﬁed by mining experience.

These ﬁgures are estimates, however, and no assurance

can be given that the indicated quantities of gold will be
produced. Gold price ﬂuctuations may render ore reserves
containing relatively lower grades of gold mineralization
uneconomic. Moreover, short-term operating factors
relating to the ore reserves, such as the need for orderly
development of ore bodies or the processing of new or
different ore grades, could affect the Company’s proﬁt-
ability in any particular accounting period.

D E F I N I T I O N S

Cont ained ounces: represents ounces in the ground
without the reduction of ounces not recovered by the
applicable metallurgical process.

Reserve grade: estimated metal content of an ore body,
based on reserve calculations.

Reserves: that part of a mineral deposit which could be
economically and legally extracted or produced at the time
of the reserve determination. Reserves are customarily
stated in terms of ore when dealing with metalliferous
minerals. There are two categories of reserves:

Proven ore: material for which tonnage and grade are
computed from dimensions revealed in outcrops, trenches,
underground workings or drill holes; grade is computed
from the results of adequate sampling; and the sites for
inspection, sampling and measurement are so spaced 
and the geological character so well-deﬁned that size, shape
and mineral content are established.

Probable ore: material for which tonnage and grade are
computed partly from speciﬁc measurements, samples or
production data and partly from projection for a reason-
able distance on geological evidence; and for which the
sites available for inspection, measurement and sampling 
are too widely or otherwise inappropriately spaced to
outline the material completely or to establish its grade
throughout.

Gold mineralized material: mineralization based on
geological evidence and assumed continuity. May or may
not be supported by samples but is supported by geo-
logical, geochemical, geophysical or other data. This
material is sufﬁciently geologically deﬁned to be
deemed potentially economic, yet is not in a deﬁnitive
mine plan. This material requires reasonable cut-off
grade criteria and has no untenable non-technical issues
barring its exploitation.

5 8

B A R R I C K   G O L D   C O R P O R A T I O N

Tons
(thousands)

123,097
30,157

6,637
5,043

2,856
5,847

3,237
4,386

3,022
2,444

114,301
61,020

241,981
200,221

8,055
15,670

G O L D S T R I K E   P R O P E R T Y
Betze-Post Mine
Proven and probable
Mineralized material

Meikle Mine
Proven and probable
Mineralized material

Rodeo/Griffin Projects
Proven and probable
Mineralized material

C A N A D I A N   P R O P E R T I E S
Bousquet Mine
Proven and probable
Mineralized material

Holt-McDermott Mine
Proven and probable
Mineralized material

P I E R I N A   P R O P E R T Y

Proven and probable
Mineralized material

P A S C U A   P R O P E R T Y

Proven and probable
Mineralized material

O T H E R   P R O P E R T I E S

Proven and probable
Mineralized material

T O T A L

Proven and probable
Mineralized material

December 31, 1998

Grade
(ounce 
per ton)

Contained
Ounces
(thousands)

Tons
(thousands)

December 31, 1997

Grade
(ounce
per ton)

Contained
Ounces
(thousands)

21,213
2,398

132,825
22,726

6,754
1,780

–

22,882

3,794
6,302

3,526
2,373

112,482
29,584

175,381
157,518

14,124
47,691

4,729
2,293

1,391
1,765

666
776

611
370

7,244
782

14,008
6,659

1,594
1,746

51,456
16,789

0.181
0.125

0.782
0.732

–

0.204

0.239
0.169

0.200
0.153

0.064
0.030

0.058
0.034

0.146
0.078

24,058
2,838

5,283
1,303

–

4,665

906
1,064

705
363

7,191
878

10,111
5,380

2,064
3,715

50,318
20,206

0.172
0.080

0.713
0.455

0.487
0.302

0.206
0.177

0.202
0.151

0.063
0.013

0.058
0.033

0.198
0.111

5 9

B A R R I C K   G O L D   C O R P O R A T I O N

OPERATING AND FINANCIA L INFORM ATION

G O L D S T R I K E   P R O P E R T Y

P I E R I N A   P R O P E R T Y

O P E R A T I N G   I N F O R M A T I O N (thousands)

Tons of ore milled
Average grade (ounces per ton)
Recovery rate (%)

Ounces of gold produced from:

Mill ore
Leach ore

Total ounces produced

F I N A N C I A L   I N F O R M A T I O N (dollars)

Gold sales per ounce
Production costs per ounce
Direct mining costs
Applied (deferred) stripping
By-product credits

Cash operating costs per ounce
Royalties
Production taxes

Total cash costs per ounce
Depreciation and amortization
Reclamation

Total production costs per ounce

Operating cash flow per ounce 

Capital expenditures (millions)
Deferred stripping/stockpile (millions)

–
–
–

–
–

–

–

–
–
–

–
–
–

–
–
–

–

–

$ 103
–

Betze-Post Mine

Meikle Mine

1998

5,176
0.320
89.2

1,479
20

1,499

1997

5,487
0.319
91.0

1,593
13

1,606

1998

857
1.031
95.9

847
–

847

1997

741
0.811
95.6

574
–

574

1998

1997

–
–
–

–

57

57

$ 400

$ 420

$ 400

$ 420

$ 400

$ 142
34
–

176
22
7

205
46
4

$ 255

$ 195

$ 68
$ 39

$ 173
(2)
–

171
26
7

204
41
3

$ 248

$ 216

$ 75
$ 15

$ 78
–

(1)

77
12
8

97
57
1

$ 155

$ 303

$ 46
–

$ 105
–

(2)

103
16
8

127
53
1

$ 181

$ 293

$  20
–

$ 53
–

(5)

48
–
–

48
191
5

$ 244

$ 352

$ 248
–

6 0

B A R R I C K   G O L D   C O R P O R A T I O N

C A N A D I A N   P R O P E R T I E S

O T H E R   P R O P E R T I E S

Bousquet Mine Holt-McDermott Mine

Bullfrog Mine

Tambo Mine

El Indio Mine

1998

714
0.257
95.8

176
–

176

1997

667
0.265
96.2

170
–

170

1998

548
0.255
96.4

134
–

134

1997

462
0.262
96.5

117
–

117

1998

3,213
0.070
92.3

208
–

208

1997

3,071
0.073
92.2

206
–

206

1998

2,449
0.077
88.4

167
–

167

1997

2,080
0.075
85.4

133
–

133

1998

596
0.187
85.4

99
–

99

1997

855
0.123
78.2

82
–

82

$ 400

$ 420

$ 400

$ 420

$ 400

$ 420

$ 400

$ 420

$ 400

$ 420

$ 243
–

(49)

194
–
–

194
201
5

$ 400

$ 206

$   10
–

$ 253
–

(59)

194
–
–

194
95
4

$ 293

$ 226

$

7
–

$ 135
–

(1)

134
–
–

134
91
4

$ 229

$ 266

$

5
–

$ 140
–

(1)

139
–
–

139
75
7

$ 221

$ 281

$

4
–

$ 241
–

(8)

233
–

1

234
85
13

$ 332

$ 166

–
–

$ 279
5
(7)

277
12
1

290
47
19

$ 356

$ 130

$
5
$  (1)

$ 278
–

(11)

267
6
–

273
104
15

$ 392

$ 127

–
–

$ 348
(38)
(11)

299
10
–

309
136
11

$ 456

$ 111

$
$

5
5

$ 558
–

(284)

274
13
–

287
24
40

$ 351

$ 113

$

3
–

$ 869
–

(530)

339
12
–

351
203
31

$ 585

$ 69

$ 26
–

6 1

B A R R I C K   G O L D   C O R P O R A T I O N

SUPPLE M ENTA L INFORM ATION

E L E V E N - Y E A R   H I S T O R I C A L   R E V I E W *

1998

1997

1996

1995

Operating results (in millions)
Revenues
Net income (loss) 
Operating cash ﬂow
Capital expenditures

Per share data
Net income (loss) per share
Cash dividends per share

Financial position (in millions)
Cash and short-term investments
Total assets
Working capital
Long-term debt
Shareholders’ equity
Debt to total capitalization

Operational statistics (unaudited)
Gold production (thousands of ounces)
Cash operating costs per ounce
Average price realized per ounce of gold sold
Average spot price of gold per ounce
Reserves (proven and probable) (thousands of ounces)

$ 1,298
301
539
507

$ 0.79
$ 0.18

$ 416
4,655
378
500
3,592
12%

3,205
$ 160
400
294
51,456

$ 1,294
(123)
470
372

$ (0.33)
$ 0.160

$ 292
4,306
253
500
3,324
13%

3,048
$ 182
420
332
50,318

$ 1,318
218
463
374

$  0.60
$ 0.140

$  245
4,515
291
500
3,501
12%

3,149
$ 193
415
388
51,117

$ 1,307
292
502
385

$ 0.82
$ 0.120

$

284
3,556
285
100
2,948
3%

$

3,141
180
406
384
36,539

*Information has been derived from audited ﬁnancial statements, except as indicated.

Q U A R T E R L Y   D A T A (unaudited)
(in millions except per share data)

1998

March
1997

1998

June
1997

September
1997

1998

December
1997

1998

Revenues 
Gold sales
Interest and other income

Costs and expenses
Operating
Depreciation and amortization
Administration
Exploration
Gain on sale of/provision for 

mining properties

Income (loss) before taxes
Income taxes

$ 302
3

$ 302
4

$ 293
3

$ 312
2

$ 324
3

$ 314
2

$ 368
2

$ 356
2

305

306

296

314

327

316

370

358

135
49
10
11

(42)

163

142
(67)

163
48
10
13

–

234

72
(17)

141
46
7
13

–

207

89
(22)

156
49
9
18

–

232

82
(20)

154
51
8
12

–

225

102
(26)

151
44
10
18

431

654

(338)
23

165
70
11
14

–

260

110
(27)

185
47
7
15

–

254

104
(29)

Net income (loss) for the period

$ 75

$

55

$

67

$

62

$ 76

$ (315)

$

83

$

75

Net income (loss) per share

Fully diluted

$ 0.20

$ 0.15

$ 0.18

$ 0.16

$ 0.20

$ (0.84)

$ 0.21

$ 0.20

6 2

B A R R I C K   G O L D   C O R P O R A T I O N

1994

1993

1992

1991

1990

1989

1988

$ 954
251
376
272

$ 0.80
$ 0.100

$ 458
3,472
367
283
2,617
10%

2,326
$ 165
402
384
37,589

$

681
213
317
165

$  0.74
$ 0.080

$

348
1,635
270
211
1,191
15%

$

1,632
168
409
360
28,439

$

554
175
283
256

$ 0.61
$ 0.065

$

288
1,499
210
260
984
21%

$

1,325
162
422
345
25,719

$

369
92
160
246

$ 0.34
$ 0.055

$

252
1,301
211
263
832
24%

$

790
204
438
362
24,377

$

283
58
94
174

$ 0.23
$ 0.040

$

312
1,143
274
331
636
34%

$

596
217
437
384
19,510

$

228
34
77
205

$ 0.14
$ 0.030

$

305
1,012
272
387
484
44%

$

468
222
436
382
19,877

$ 163
28
50
178

$ 0.12
$ 0.020

$

51
668
35
215
352
38%

$

341
223
446
437
17,083

Q U A R T E R L Y   D A T A (unaudited)
(in millions except per share data)

1998

March
1997

1998

June
1997

September
1997

1998

December
1997

1998

Operating activities
Net income (loss)
Depreciation and other 

non-cash items

Working capital changes

Development activities
Property, plant and equipment
Sale of mining properties 
Other

Financing activities
Capital stock
Long-term obligations
Dividends

Increase (decrease) in cash
Cash beginning of period

Cash at end of period

$ 75

$  55

$ 67

$  62

$ 76

$ (315)

$  83

$  75

53
7

135

(113)
90
17

(6)

21
(3)
–

18

147
292

54
(8)

101

(65)
–
(4)

(69)

2
(2)
–

–

32
245

51
(9)

109

(161)
60
(27)

(128)

4
(1)
(34)

(31)

(50)
439

56
3

121

(113)
–
(21)

(134)

1
(5)
(30)

(34)

(47)
277

55
15

146

(121)
–
(10)

(131)

3
(5)
–

(2)

13
389

436
7

128

(75)
–
45

(30)

2
(3)
–

(1)

97
230

77
(11)

149

(112)
20
(5)

(97)

7
(11)
(34)

(38)

14
402

36
9

120

(119)
–
(16)

(135)

1
9
(30)

(20)

(35)
327

$ 439

$ 277

$ 389

$ 230

$ 402

$ 327

$ 416

$ 292

6 3

B A R R I C K   G O L D   C O R P O R A T I O N

SHAREHOLDER INFORM ATION

S H A R E S   T R A D E D   O N   S I X   M A J O R  

T I C K E R   S Y M B O L

A N N U A L   D I V I D E N D   P E R   S H A R E

I N T E R N A T I O N A L   S T O C K   E X C H A N G E S

ABX

US 18¢

New York
Toronto
Montreal

London
Paris
Swiss

I N D E X   L I S T I N G S

S&P 500 Index
TSE 60
TSE 300
TSE Gold & Precious Minerals Index
FT of London Gold Index
Philadelphia Gold/Silver Index

S H A R E   T R A D I N G   I N F O R M A T I O N

Toronto Stock Exchange

Quarter

Share Volume
(millions)

N U M B E R   O F   S H A R E H O L D E R S

V O L U M E   O F   S H A R E S   T R A D E D

14,397

C O M M O N   S H A R E S   (millions) 
Outstanding at 
December 31, 1998

Weighted average

Basic
Fully diluted

377

376
390

The Company’s shares were split on a 
two-for-one basis in 1987, 1989 and 1993.

(millions)

NYSE
TSE

1998

365
409

1997

300
281

C L O S I N G   P R I C E   O F   S H A R E S  

December 31, 1998

NYSE
TSE 

US$ 19.50
C$ 29.80

New York Stock Exchange

High

Low

Quarter

Share Volume
(millions)

High

Low

1998
First
Second
Third
Fourth

1997
First
Second
Third
Fourth

C$ 31.65
34.00
32.60
35.95

C$ 21.65
24.50
20.10
27.90

C$ 39.30
36.20
34.90
34.80

C$ 32.35
29.75
26.25
21.50

107
93
97
112

409

68
74
67
72

281

1998
First
Second
Third
Fourth

1997
First
Second
Third
Fourth

US$ 22.25
26.69
21.56
23.63

US$ 15.13
16.63
12.88
17.94

US$ 30.50
26.00
25.13
25.19

US$ 25.13
21.50
19.38
15.13

104
81
82
98

365

80
65
70
85

300

6 4

B A R R I C K   G O L D   C O R P O R A T I O N

D I V I D E N D   P A Y M E N T S

F O R M   4 0 - F

S H A R E H O L D E R   C O N T A C T S

In 1998, the Company paid a cash 
dividend of $0.18 per share – $0.09 on
June 15 and $0.09 on December 15.
A cash dividend of $0.16 per share
was paid in 1997 – $0.08 on June 16
and $0.08 on December 15.

D I V I D E N D   P O L I C Y

In the past, the Company increased
cash dividends as earnings and cash
ﬂow rose. However, dividends will
remain modest as it is the Company’s
intention to retain most of its earn-
ings to support current operations,
to fund exploration and development
projects, and to fund acquisitions 
of gold properties. The Board of
Directors reviews the dividend 
policy semi-annually based on the
Company’s cash requirements and
ﬁnancial position.

A N N U A L   M E E T I N G

The Annual General Meeting of
Shareholders will be held on Tuesday,
May 4, 1999 at 10:00 a.m. in the
Canadian Room, Royal York Hotel,
Toronto, Ontario.

Annual Report on Form 40-F is ﬁled
with the United States Securities and
Exchange Commission. This report
will be made available to shareholders,
without charge, upon written request
to the Secretary of the Company at
the Corporate Ofﬁce.

O T H E R   L A N G U A G E   R E P O R T S

French and Spanish versions of
this annual report are available 
from Investor Relations at the
Corporate Ofﬁce.

D I V I D E N D   R E I N V E S T M E N T   P R O G R A M

The Canadian Shareowners Asso-
ciation, a non-proﬁt educational
organization of retail investors, has
selected Barrick to be a part of its
dividend reinvestment program for
Canadian investors. Barrick share-
holders interested in this program
should contact the Association at:
Telephone: (416) 595-9600 
Fax: (416) 595-0400
Email: questions @shareowner.ca
Web site: www.shareowner.ca

Shareholders are welcome to 
contact the Company for informa-
tion or questions concerning their
shares. For general information on
the Company, contact the Investor
Relations Department; see inside
back cover for contact information.
For information on such matters
as share transfers, dividend cheques
and change of address, inquiries
should be directed to the Secretary 
of Barrick or the Transfer Agents.
Addresses and telephone numbers 
of the Transfer Agents follow.

T R A N S F E R   A G E N T S  

A N D   R E G I S T R A R S

CIBC Mellon Trust Company 
P.O. Box 7010
Adelaide Street Postal Station
Toronto, Ontario M5C 2W9
Telephone: (416) 643-5500 
Toll-free throughout North America:
1-800-387-0825
Fax: (416) 643-5501
Email: inquiries@cibcmellon.ca
Web site: www.cibcmellon.ca

ChaseMellon Shareholder Services, ...
85 Overpeck Center
Ridgeﬁeld Park, New Jersey 07660
Telephone: (201) 296-4002
Toll-free within the United States:
1-800-526-0801

6 5

BOARD OF DIRECTORS

Howard L. Beck, ..
Toronto, Ontario 
Chairman, Wescam Inc.
Mr. Beck was a founding Partner of the
law ﬁrm Davies, Ward & Beck. He has
been on the Barrick Board since 1984.

C. William D. Birchall 
London, England
Vice Chairman,
TrizecHahn Corporation
Mr. Birchall has had a long association
with Barrick, being one of the original
Board members of the Company.

John K. Carrington 
Thornhill, Ontario
Vice Chairman and
Chief Operating Ofﬁcer,
Barrick Gold Corporation
Mr. Carrington was appointed a 
Vice Chairman of the Company 
in March 1999 in addition to his role 
as Chief Operating Ofﬁcer, which 
he assumed at the end of 1996. He 
has been a member of the Board 
since 1996 and joined the Company 
in 1995 as Executive Vice President,
Operations.

Marshall A. Cohen, ..
Toronto, Ontario
Counsel, Cassels Brock & Blackwell
Mr. Cohen served the Government 
of Canada for 15 years in a number of
senior positions including Deputy
Minister of Finance. He has been a
Director of Barrick since 1988.

Peter A. Crossgrove 
Toronto, Ontario
Chairman, Camreal Corporation
Prior to January 1993, he was Vice
Chairman and Acting Chief Executive
Ofﬁcer of Placer Dome Inc. He has 
been a Director of Barrick since 1993.

B A R R I C K   G O L D   C O R P O R A T I O N

The Honourable 
J. Trevor Eyton, .., .. 
Caledon, Ontario
Senior Group Chairman,
EdperBrascan Corporation
Member of the Senate of Canada
Mr. Eyton has been a member of the
Senate of Canada and on Barrick’s Board
since 1990.

David H. Gilmour
Palm Beach, Florida
Chairman, Fiji Water, 
David Gilmour is one of the original
partners in Barrick and has been on the
Board since the Company’s inception.

Angus A. MacNaughton 
Danville, California
President,
Genstar Investment Corporation
Mr. MacNaughton is a Vice Chairman 
of Barrick. He has been a member of the
Board since 1986.

The Right Honourable
Brian Mulroney, .., ..
Montreal, Quebec
Senior Partner, Ogilvy Renault
Mr. Mulroney was Prime Minister 
of Canada from 1984 to 1993.
He joined the Barrick Board in 1993 
and is Chairman of the Company’s
International Advisory Board.

Anthony Munk 
Toronto, Ontario 
Vice President, Onex Corporation
Mr. Munk became a member of the 
Board of Directors in 1996. He is 
a Partner of Onex Corporation, an
investment company.

Peter Munk, ..
Toronto, Ontario
Chairman,
Barrick Gold Corporation
Peter Munk is the founder and
Chairman of the Board of Barrick Gold
Corporation. He is also the founder,
Chairman and Chief Executive Ofﬁcer
of TrizecHahn Corporation.

6 6

The Honorable Edward N. Ney 
New York, New York
Chairman, Board of Advisors,
Burson-Marsteller
From 1989 to 1992, Edward Ney was
United States Ambassador to Canada.
He has been a Director of Barrick
since 1992.

Randall Oliphant 
Unionville, Ontario
President and 
Chief Executive Ofﬁcer,
Barrick Gold Corporation
Mr. Oliphant was appointed 
President and Chief Executive Ofﬁcer 
in March 1999. Previously he was
Executive Vice President and Chief
Financial Ofﬁcer. He has been on 
the Board since 1997. Mr. Oliphant
joined Barrick in 1987.

Joseph L. Rotman, ..
Toronto, Ontario
Chairman and 
Chief Executive Ofﬁcer,
Clairvest Group Inc.
Joseph Rotman is also chairman of
several private companies including 
Roy-L Capital Corporation. He has been a
Director of Barrick since its inception.

Gregory C.Wilkins 
Toronto, Ontario
President and 
Chief Operating Ofﬁcer,
TrizecHahn Corporation
Mr. Wilkins was Executive Vice President
and Chief Financial Ofﬁcer of Barrick
until his appointment at Horsham in
September 1993. He assumed his present
position in 1996 with the merger of
Trizec Corporation Ltd. and Horsham
Corporation. He has been a member of
the Board since 1991.

B A R R I C K   G O L D   C O R P O R A T I O N

CORPORATE GOVERNANCE

The Company, the Board of Directors
and management of Barrick empha-
size effective corporate governance.
Accordingly, they have developed
systems and procedures that are
appropriate to the Company and its
business. The Board of Directors is
continuing to monitor its governance
practices to ensure they remain appro-
priate and responsive to changing 
circumstances.

B O A R D   M A N D A T E
Barrick’s management is responsible 
for the Company’s day-to-day oper-
ations, for proposing its strategic 
direction and presenting budget and
business plans to the Board of Direc-
tors for approval. All major acquisi-
tions, dispositions and investments, as
well as signiﬁcant ﬁnancing and other
signiﬁcant matters outside the ordinary
course of Barrick’s business, are subject
to approval by the Board of Directors.

B O A R D   C O N S T I T U T I O N
Barrick’s Board of Directors is cur-
rently comprised of 15 directors,
eight of whom are unrelated to the
Company. The composition of the
Board reﬂects a breadth of back-
ground and experience that is impor-
tant for effective governance of a
company in the mining industry.

B O A R D   O P E R A T I O N S
The Board of Directors has estab-
lished six committees, including the
Audit, Compensation and Stock
Option, Corporate Governance and
Nominating, Executive, Environ-
mental, Occupational Health and
Safety and Finance Committees.
The mandates of these Committees
are described below. The Audit,
Corporate Governance and Nominat-
ing and Compensation and Stock
Option Committees are comprised
entirely of unrelated directors.

COM MIT TEES OF THE BOARD

The Board of Directors believes that
it is desirable for the majority of the
Executive Committee to be related 
to the Company since its mandate
requires members to be available on
very short notice to deal with signiﬁ-
cant issues. All actions approved by
the Executive Committee are subse-
quently brought to the attention of
the full Board of Directors. The fact
that a majority of the members of
the Finance Committee are related 
to the Company is balanced by the 
fact that the recommendations of
the Committee are considered by the
full Board of Directors.

A detailed Statement of
Corporate Governance practices
appears in the Company’s Infor-
mation Circular.

A U D I T   C O M M I T T E E

C O M P E N S A T I O N   A N D   S T O C K  

C O R P O R A T E   G O V E R N A N C E   A N D

(H.L. Beck, P.A. Crossgrove, J.L. Rotman)
Responsible for reviewing the Com-
pany’s ﬁnancial statements with man-
agement and the external auditors. The
Committee also reviews the external
audit plan, the adequacy of internal
control systems and meets with the
external auditors to discuss ﬁnancial
issues relevant to the Company.

E X E C U T I V E   C O M M I T T E E

(A.A. MacNaughton, B. Mulroney,

P. Munk, G.C. Wilkins)
Exercises all the powers of the Board
of Directors (except those powers
speciﬁcally reserved by law to the
Board of Directors) in the manage-
ment and direction of business during
intervals between Board meetings.

O P T I O N   C O M M I T T E E

N O M I N A T I N G   C O M M I T T E E

(H.L. Beck, M.A. Cohen, A.A. MacNaughton)
Reviews and approves compensation
policies and practices and reviews
and recommends to the Board the
remuneration for directors and
senior management of the Company.
The Committee also administers the
Company’s stock option plan.

E N V I R O N M E N T A L ,   O C C U P A T I O N A L

H E A L T H   A N D   S A F E T Y   C O M M I T T E E

(P.A. Crossgrove, A. Munk, J.L. Rotman)
Reviews the Company’s environmen-
tal and occupational health and safety
policies and programs, oversees its
environmental and occupational health
and safety performance, and monitors
current and future regulatory issues.

(M.A. Cohen, J.T. Eyton, A.A. MacNaughton,

E.N. Ney)
Reviews corporate governance poli-
cies and practices. This Committee
also reviews candidates for election
as directors, annually recommends 
to the Board the slate of nominees
for election to the Board by the
shareholders and recommends to
the Board nominees to ﬁll vacancies
on the Board.

F I N A N C E   C O M M I T T E E

(C.W.D. Birchall, A.A. MacNaughton, 

G.C. Wilkins)
Reviews the Company’s investment
strategies, gold price hedging pro-
gram and debt and equity structure.

6 7

B A R R I C K   G O L D   C O R P O R A T I O N

OFFICERS

Peter Munk
Chairman

Angus A. MacNaughton
Vice Chairman

Randall Oliphant
President and
Chief Executive Ofﬁcer

John K. Carrington
Vice Chairman and
Chief Operating Ofﬁcer

Patrick J. Garver
Executive Vice President and 
General Counsel

Alan R. Hill
Executive Vice President, Development

Ronald S. Lloyd
Executive Vice President,
Corporate Development

Alexander J. Davidson
Senior Vice President, Exploration

Louis Dionne
Senior Vice President,
Underground Operations

Gregory P. Fauquier
Senior Vice President,
United States Operations

M. Isabel Mulligan
Senior Vice President,
Investor Relations

Jamie C. Sokalsky
Senior Vice President and 
Chief Financial Ofﬁcer

Kenneth G. Thomas
Senior Vice President,
Technical Services

M. Vincent Borg
Vice President,
Corporate Communications

Michael J. Brown
Vice President,
United States Public Affairs 
and Public Relations

André R. Falzon
Vice President and Controller

James Fleming
Vice President, Communications

John T. McDonough
Vice President, Environment

David W. Welles
Vice President and Tax Counsel

Sybil E. Veenman
Associate General Counsel
and Secretary

INTERNATIONA L ADVISORY BOARD

The International Advisory Board
was established to provide advice 
to Barrick’s Board of Directors and
Management as the Company
expands internationally.

M E M B E R S
Senator Howard H. Baker, Jr.,
United States
Partner, Baker, Donelson,
Bearman & Caldwell

C H A I R M A N
The Right Honourable 
Brian Mulroney
Former Prime Minister of Canada

Honourable Paul G. Desmarais, Sr.,
Canada
Director and Chairman 
of Executive Committee,
Power Corporation of Canada

Vernon E. Jordan, Jr.,
United States
Senior Partner, Akin, Gump, Strauss,
Hauer and Feld

A. Andrónico Luksic, Chile
Head of the Luksic Group

Peter Munk, Canada
Chairman,
Barrick Gold Corporation and 
Chairman and 
Chief Executive Ofﬁcer,
TrizecHahn Corporation

Karl Otto Pöhl, Germany
Senior Partner,
Sal. Oppenheim Jr. & Cie.

José E. Rohm, Argentina 
Managing Director,
Banco General de Negocios

6 8

CORPORATE INFORM ATION

C O R P O R A T E   O F F I C E

Barrick Gold Corporation
Royal Bank Plaza, South Tower
200 Bay Street, Suite 2700
P.O. Box 119
Toronto, Canada M5J 2J3
Telephone: (416) 861-9911
Fax: (416) 861-2492

M I N I N G   O P E R A T I O N S

N O R T H A M E R I C A
Goldstrike Property:
Betze-Post Mine and 
Meikle Mine
P.O. Box 29
Elko, Nevada 89803
Donald R. Prahl
Vice President and 
General Manager
Telephone: (775) 738-8043
Fax: (775) 738-7685

Holt-McDermott Mine
P.O. Box 278
Kirkland Lake, Ontario
P2N 3H7
John Haﬂidson
Mine Manager
Telephone: (705) 567-9251
Fax: (705) 567-6867

Bousquet Mine
2 Bousquet Road
Route 395
Preissac, Quebec J0Y 2E0
Christian Pichette
Mine Manager
Telephone: (819) 759-3681
Fax: (819) 759-3663

S O U T H   A M E R I C A
Chilean Operations
Av. Pedro de Valdivia 100
Piso 11, Providencia
Santiago, Chile
Sergio Jarpa 
Vice President, Operations
Telephone: (56-2) 340-2022
Fax: (56-2) 233-0188

Pierina Mine
Pasaje Los Delﬁnes, 159
3er Piso
Urb. Las Gardenias
Lima 33, Peru
Raymond Threlkeld
General Manager
Telephone: (51-1) 275-0600
Fax: (51-1) 275-3733

C O R P O R A T E   D A T A

A U D I T O R S
PricewaterhouseCoopers 
Toronto, Canada

I N V E S T O R   R E L A T I O N S
Contact:
Belle Mulligan
Senior Vice President,
Investor Relations
Telephone: (416) 307-7442
Fax: (416) 861-0727
Email: bmulligan@barrick.com

Richard S. Young
Director, Investor Relations
Telephone: (416) 307-7431
Fax: (416) 861-0727
Email: ryoung@barrick.com

Kathy Sipos
Manager, Investor Relations
Telephone: (416) 307-7441
Fax: (416) 861-0727
Email: ksipos@barrick.com

Toll-free number within 
Canada and United States:
1-800-720-7415
Email: investor@barrick.com
Web site: www.barrick.com

W E   A R E   B A R R I C K
Front  cover  from  left  to  right: James  Henry,  Joel  Kinder,  Enrique  Garay,  Sharon  Matijek,  Brian  Landers,  Tom  Owens,  Jay  A.  Doke,  Lise  Boissonneault,
Moe  Connell,  Jeannot  Boutin,  Christine  Carroll,  Peter  Toth. Back  cover  from  left  to  right: Robert  Lee,  Phan  Tran,  Wendy  Peatross,  Robert  Deza,  Pilar
Valdivieso, Rodolfo Labbé, Normand Bédard, Claudia Flores, William Crowe, Colt Nelson, Alejandro Gonzalez, Dwight Trautmann, James Henry.

F O R W A R D   L O O K I N G   S T A T E M E N T S
Certain statements included in this report constitute “forward
looking statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995. Such forward looking
statements involve known and 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 mate-
rially different from future results, performance or achievements

expressed or implied by those forward looking statements. Barrick
is subject to the effect of changes in the worldwide price of gold and
the risks involved in mining operations. These factors are discussed
in greater detail in the “Management’s Discussion and Analysis of
Financial Results” section as well as Barrick’s Annual Information
Form on ﬁle with the U.S. Securities and Exchange Commission and
Canadian provincial securities regulatory authorities.

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You can contac t us 
toll-fr e e wi thin Canada
and the United States at
1-80 0-720-7415

email us at
in vestor@barrick.com

visi t our inv es to r 
r elati ons w eb si te at
w w w.barrick.com

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