BCE Place
TD Canada Trust Tower, Suite 3700
P.O. Box 212
161 Bay Street
Toronto, Ontario
M5J 2S1
ANNUAL INFORMATION FORM
GLOSSARY OF TERMS | 3 | |||
REPORTING CURRENCY, FINANCIAL AND RESERVE INFORMATION | 8 | |||
FORWARD-LOOKING INFORMATION | 8 | |||
SCIENTIFIC AND TECHNICAL INFORMATION | 9 | |||
GENERAL INFORMATION | 9 | |||
Incorporation | 9 | |||
Subsidiaries | 10 | |||
Areas of Interest | 10 | |||
General Development of the Business | 10 | |||
Transactions | 13 | |||
NARRATIVE DESCRIPTION OF THE BUSINESS | 17 | |||
Production and Total Cash Costs | 17 | |||
Mineral Reserves and Mineral Resources | 19 | |||
Marketing and Distribution | 28 | |||
Employees and Labour Relations | 29 | |||
Competition | 29 | |||
REGIONAL BUSINESS UNITS | 30 | |||
North America | 30 | |||
Goldstrike Property | 30 | |||
Australia Pacific | 36 | |||
Africa | 36 | |||
South America | 37 | |||
Lagunas Norte Mine | 37 | |||
Veladero Mine | 41 | |||
Zaldívar Mine | 45 | |||
Pascua-Lama Project | 49 |
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EXPLORATION, DEVELOPMENT AND BUSINESS DEVELOPMENT | 53 | |||
ENVIRONMENT AND CLOSURE | 57 | |||
FINANCIAL RISK-MANAGEMENT | 58 | |||
LEGAL MATTERS | 62 | |||
Government Controls and Regulations | 62 | |||
Litigation | 63 | |||
RISK FACTORS | 66 | |||
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 74 | |||
CONSOLIDATED FINANCIAL STATEMENTS | 74 | |||
CAPITAL STRUCTURE | 75 | |||
RATINGS | 78 | |||
MARKET FOR SECURITIES | 80 | |||
MATERIAL CONTRACTS | 80 | |||
TRANSFER AGENTS AND REGISTRARS | 81 | |||
DIVIDEND POLICY | 81 | |||
DIRECTORS AND OFFICERS OF THE COMPANY | 81 | |||
AUDIT COMMITTEE | 84 | |||
Audit Committee Mandate | 84 | |||
Composition of the Audit Committee | 88 | |||
Participation on Other Audit Committees | 89 | |||
Audit Committee Pre-Approval Policies and Procedures | 89 | |||
External Auditor Service Fees | 90 | |||
CONTROLS AND PROCEDURES | 90 | |||
ADDITIONAL INFORMATION | 91 |
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Metric conversion | ||||||||||
Troy ounces | × | 31.10348 | = | Grams | ||||||
Troy ounces per short ton | × | 34.28600 | = | Grams per tonne | ||||||
Pounds | × | 0.00045 | = | Tonnes | ||||||
Tons | × | 0.90718 | = | Tonnes | ||||||
Feet | × | 0.30480 | = | Meters | ||||||
Miles | × | 1.60930 | = | Kilometers | ||||||
Acres | × | 0.40468 | = | Hectares | ||||||
Fahrenheit | (°F-32) × 5 ÷ 9 | = | Celsius |
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Gold Mines | Ownership(1) | 2006(6) | 2005 | |||||||||
(thousands | (thousands | |||||||||||
of ounces) | of ounces) | |||||||||||
North America | ||||||||||||
Goldstrike Property, Nevada | ||||||||||||
Goldstrike Open Pit | 100 | % | 1,388 | 1,514 | ||||||||
Goldstrike Underground | 100 | % | 477 | 510 | ||||||||
Goldstrike Property total | 1,865 | 2,024 | ||||||||||
Eskay Creek Mine, British Columbia | 100 | % | 113 | 172 | ||||||||
Round Mountain Mine, Nevada(2) | 50 | % | 340 | 368 | ||||||||
Hemlo Property, Ontario(2) | 50 | % | 205 | 230 | ||||||||
Marigold Mine, Nevada(2) | 33 | % | 50 | 69 | ||||||||
Bald Mountain Mine | 100 | % | 273 | n/a | ||||||||
Cortez Mine | 60 | % | 253 | n/a | ||||||||
Turquoise Ridge Mine | 75 | % | 180 | n/a | ||||||||
Golden Sunlight Mine | 100 | % | 93 | n/a | ||||||||
3,372 | 2,863 | |||||||||||
South America | ||||||||||||
Veladero Mine, Argentina(3) | 100 | % | 511 | 56 | ||||||||
Pierina Mine, Peru | 100 | % | 509 | 628 | ||||||||
Lagunas Norte Mine, Peru(3) | 100 | % | 1,084 | 550 | ||||||||
2,104 | 1,234 | |||||||||||
Australia Pacific | ||||||||||||
Plutonic Mine, Western Australia | 100 | % | 237 | 251 | ||||||||
Darlot Mine, Western Australia | 100 | % | 137 | 135 | ||||||||
Lawlers Mine, Western Australia | 100 | % | 110 | 131 |
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Gold Mines | Ownership(1) | 2006(6) | 2005 | |||||||||
(thousands | (thousands | |||||||||||
of ounces) | of ounces) | |||||||||||
Kalgoorlie Mine, Western Australia(2) | 50 | % | 338 | 417 | ||||||||
Granny Smith Mine, Western Australia | 100 | % | 295 | n/a | ||||||||
Kanowna Mine, Western Australia | 100 | % | 477 | n/a | ||||||||
Osborne Mine, Queensland, Australia | 100 | % | 30 | n/a | ||||||||
Henty Mine, Tasmania | 100 | % | 68 | n/a | ||||||||
Cowal Mine, Central New South Wales, Australia(4) | 100 | % | 122 | — | ||||||||
Porgera Mine, Papa New Guinea | 75 | % | 406 | n/a | ||||||||
2,220 | 934 | |||||||||||
Africa | ||||||||||||
Bulyanhulu Mine, Tanzania | 100 | % | 330 | 311 | ||||||||
Tulawaka Mine, Tanzania(2) | 70 | % | 98 | 87 | ||||||||
North Mara Mine, Tanzania | 100 | % | 362 | n/a | ||||||||
South Deep Mine, South Africa(5) | 50 | % | 124 | n/a | ||||||||
914 | 398 | |||||||||||
Other | 33 | 31 | ||||||||||
Company Total | 8,643 | 5,460 | ||||||||||
(1) | Barrick’s interest is subject to royalty obligations at certain mines. | |
(2) | Barrick’s proportional share. | |
(3) | The Veladero and Lagunas Norte mines commenced production in the second half of 2005. | |
(4) | The Cowal mine commenced production in May 2006. | |
(5) | Barrick sold its interest in the South Deep mine in December 2006. | |
(6) | Barrick’s share of the acquired Placer Dome mines production reflects the results from January 20, 2006. |
Copper Mines | Ownership | 2006(1) | 2005(2) | |||||||||
(millions of | (millions of | |||||||||||
pounds) | pounds) | |||||||||||
Zaldívar Mine, Chile | 100 | % | 308 | n/a | ||||||||
Osborne Mine, Queensland, Australia | 100 | % | 59 | n/a | ||||||||
Company Total | 367 | |||||||||||
(1) | Barrick’s share of the acquired Placer Dome mines production reflects the results from January 20, 2006. |
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(2) | The 2005 comparative period for copper has not been included as Barrick did not produce any significant amount of copper prior to the production from the copper mines acquired with Placer Dome. |
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For the years ended Dec.31 | ||||||||||||||||
($ millions, except per ounce/pound information in | Gold | Copper1 | ||||||||||||||
dollars) | 2006 | 2005 | 2004 | 2006 | ||||||||||||
Cost of sales2 | $ | 2,343 | $ | 1,214 | $ | 1,047 | $ | 393 | ||||||||
Cost of sales at South Deep included in discontinued operations | 101 | — | — | — | ||||||||||||
Cost of sales attributable to non-controlling interests3 | (63 | ) | (7 | ) | — | — | ||||||||||
Inventory purchase accounting adjustments included in cost of sales4 | (11 | ) | — | — | (97 | ) | ||||||||||
Cost of sales as adjusted | 2,370 | 1,207 | 1,047 | 296 | ||||||||||||
Amortization at producing mines-consolidated | 627 | 409 | 425 | 66 | ||||||||||||
Amortization at South Deep included in discontinued operations | 18 | — | — | — | ||||||||||||
Amortization at producing mines attributable to non-controlling interests3 | (16 | ) | (5 | ) | — | — | ||||||||||
Amortization at producing mines-equity basis | 629 | 404 | 425 | 66 | ||||||||||||
Inventory purchase accounting adjustments4 | 11 | — | — | 97 | ||||||||||||
Cost of sales including amortization and inventory purchase accounting adjustments-equity basis | $ | 3,010 | $ | 1,611 | $ | 1,472 | $ | 459 | ||||||||
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Total cash costs per ounce/pound | For the years ended Dec.31 | |||||||||||||||
Gold | Copper1 | |||||||||||||||
(Per ounce/pound information in dollars) | 2006 | 2005 | 2004 | 2006 | ||||||||||||
Ounces/pounds sold – consolidated (thousands/millions) | 8,566 | 5,353 | 4,936 | 376 | ||||||||||||
Sales attributable to non-controlling interests3 | (176 | ) | (33 | ) | — | — | ||||||||||
Ounces/pounds sold – equity basis | 8,390 | 5,320 | 4,936 | 376 | ||||||||||||
Total cash costs per ounce/pound – equity basis | $ | 282 | $ | 227 | $ | 214 | $ | 0.79 | ||||||||
Amortization per ounce/pound – equity basis | 76 | 76 | 86 | 0.17 | ||||||||||||
Inventory purchase accounting adjustments per ounce/pound | 1 | — | — | 0.26 | ||||||||||||
Cost of sales and amortization per ounce/pound attributable to non-controlling interests3 | 2 | — | — | — | ||||||||||||
Total costs per ounce/pound5 – consolidated basis | $ | 361 | $ | 303 | $ | 300 | $ | 1.22 | ||||||||
1 | The 2005 and 2004 comparative periods for copper have been omitted as Barrick did not produce any significant amounts of copper prior to the production from the copper mines acquired with Placer Dome. | |
2 | The aggregate amount of cost of sales for gold and copper is as per Barrick’s Consolidated Financial Statements. | |
3 | Relates to a 30% interest in Tulawaka and a 50% interest in South Deep. | |
4 | Based on Barrick’s equity interest. | |
5 | Includes amortization, amounts attributable to non-controlling interests and inventory purchase accounting adjustments. |
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As at December 31, 2006 | PROVEN | PROBABLE | TOTAL | |||||||||||||||||||||||||||||||||
Tons | Grade(8) | Ounces(9) | Tons | Grade(8) | Ounces(9) | Tons | Grade(8) | Ounces(9) | ||||||||||||||||||||||||||||
Based on attributable ounces | (000’s) | (oz/ton) | (000’s) | (000’s) | (oz/ton) | (000’s) | (000’s) | (oz/ton) | (000’s) | |||||||||||||||||||||||||||
NORTH AMERICA | ||||||||||||||||||||||||||||||||||||
Goldstrike Open Pit | 62,699 | 0.117 | 7,336 | 42,507 | 0.136 | 5,786 | 105,206 | 0.125 | 13,122 | |||||||||||||||||||||||||||
Goldstrike Underground | 3,108 | 0.495 | 1,538 | 4,554 | 0.285 | 1,296 | 7,662 | 0.370 | 2,834 | |||||||||||||||||||||||||||
Goldstrike Property Total | 65,807 | 0.135 | 8,874 | 47,061 | 0.150 | 7,082 | 112,868 | 0.141 | 15,956 | |||||||||||||||||||||||||||
Pueblo Viejo (60%)(7) | 12,684 | 0.088 | 1,112 | 105,890 | 0.092 | 9,761 | 118,574 | 0.092 | 10,873 | |||||||||||||||||||||||||||
Cortez (60%)(7) | 40,240 | 0.075 | 3,020 | 70,171 | 0.052 | 3,671 | 110,411 | 0.061 | 6,691 | |||||||||||||||||||||||||||
Bald Mountain | 75,366 | 0.033 | 2,470 | 34,556 | 0.029 | 987 | 109,922 | 0.031 | 3,457 | |||||||||||||||||||||||||||
Turquoise Ridge (75%) | 3,516 | 0.544 | 1,913 | 2,811 | 0.544 | 1,530 | 6,327 | 0.544 | 3,443 | |||||||||||||||||||||||||||
Round Mountain (50%) | 40,462 | 0.021 | 845 | 72,580 | 0.015 | 1,107 | 113,042 | 0.017 | 1,952 | |||||||||||||||||||||||||||
Ruby Hill | 8,812 | 0.059 | 522 | 10,667 | 0.052 | 558 | 19,479 | 0.055 | 1,080 | |||||||||||||||||||||||||||
Hemlo (50%) | 5,417 | 0.084 | 454 | 3,629 | 0.073 | 264 | 9,046 | 0.079 | 718 | |||||||||||||||||||||||||||
Marigold (33%) | 16,664 | 0.022 | 360 | 17,626 | 0.020 | 348 | 34,290 | 0.021 | 708 | |||||||||||||||||||||||||||
Golden Sunlight | 4,399 | 0.081 | 357 | 284 | 0.067 | 19 | 4,683 | 0.080 | 376 | |||||||||||||||||||||||||||
Eskay Creek | 104 | 0.731 | 76 | 32 | 0.844 | 27 | 136 | 0.757 | 103 | |||||||||||||||||||||||||||
South Arturo (60%) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Donlin Creek (30%) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
SOUTH AMERICA | ||||||||||||||||||||||||||||||||||||
Pascua-Lama | 38,227 | 0.053 | 2,029 | 352,758 | 0.042 | 14,959 | 390,985 | 0.043 | 16,988 | |||||||||||||||||||||||||||
Veladero | 24,581 | 0.032 | 791 | 346,982 | 0.030 | 10,577 | 371,563 | 0.031 | 11,368 | |||||||||||||||||||||||||||
Lagunas Norte | 10,853 | 0.051 | 553 | 194,980 | 0.042 | 8,251 | 205,833 | 0.043 | 8,804 | |||||||||||||||||||||||||||
Pierina | 13,784 | 0.042 | 582 | 18,850 | 0.033 | 627 | 32,634 | 0.037 | 1,209 | |||||||||||||||||||||||||||
AUSTRALIA PACIFIC | ||||||||||||||||||||||||||||||||||||
Porgera (75%) | 45,952 | 0.102 | 4,703 | 17,924 | 0.132 | 2,364 | 63,876 | 0.111 | 7,067 | |||||||||||||||||||||||||||
Kalgoorlie (50%) | 47,603 | 0.053 | 2,536 | 40,072 | 0.064 | 2,554 | 87,675 | 0.058 | 5,090 | |||||||||||||||||||||||||||
Cowal | 12,684 | 0.038 | 476 | 74,003 | 0.037 | 2,711 | 86,687 | 0.037 | 3,187 | |||||||||||||||||||||||||||
Plutonic | 984 | 0.119 | 117 | 17,662 | 0.121 | 2,130 | 18,646 | 0.121 | 2,247 | |||||||||||||||||||||||||||
Kanowna | 5,241 | 0.179 | 938 | 7,649 | 0.129 | 986 | 12,890 | 0.149 | 1,924 | |||||||||||||||||||||||||||
Darlot | 2,145 | 0.113 | 242 | 3,509 | 0.150 | 526 | 5,654 | 0.136 | 768 | |||||||||||||||||||||||||||
Granny Smith | 4,370 | 0.055 | 242 | 3,025 | 0.148 | 448 | 7,395 | 0.093 | 690 | |||||||||||||||||||||||||||
Lawlers | 874 | 0.106 | 93 | 2,402 | 0.139 | 333 | 3,276 | 0.130 | 426 | |||||||||||||||||||||||||||
Henty | — | — | — | 741 | 0.266 | 197 | 741 | 0.266 | 197 | |||||||||||||||||||||||||||
Osborne | 3,653 | 0.025 | 90 | 4,164 | 0.016 | 65 | 7,817 | 0.020 | 155 | |||||||||||||||||||||||||||
Reko Diq (37.5%)(12) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
AFRICA | ||||||||||||||||||||||||||||||||||||
Bulyanhulu | 1,325 | 0.411 | 544 | 29,131 | 0.365 | 10,641 | 30,456 | 0.367 | 11,185 | |||||||||||||||||||||||||||
North Mara | 19,224 | 0.106 | 2,030 | 12,567 | 0.099 | 1,246 | 31,791 | 0.103 | 3,276 | |||||||||||||||||||||||||||
Buzwagi(7) | 95 | 0.063 | 6 | 45,073 | 0.058 | 2,634 | 45,168 | 0.058 | 2,640 | |||||||||||||||||||||||||||
Tulawaka (70%) | 259 | 0.116 | 30 | 667 | 0.450 | 300 | 926 | 0.356 | 330 | |||||||||||||||||||||||||||
OTHER | — | — | — | 363 | 0.435 | 158 | 363 | 0.435 | 158 | |||||||||||||||||||||||||||
TOTAL | 505,325 | 0.071 | 36,005 | 1,537,829 | 0.057 | 87,061 | 2,043,154 | 0.060 | 123,066 | |||||||||||||||||||||||||||
PROVEN | PROBABLE | TOTAL | ||||||||||||||||||||||||||||||||||
Tons | Grade(8) | Contained lbs(9) | Tons | Grade(8) | Contained lbs(9) | Tons | Grade(8) | Contained lbs(9) | ||||||||||||||||||||||||||||
Based on attributable pounds | (000’s) | (%) | (millions) | (000’s) | (%) | (millions) | (000’s) | (%) | (millions) | |||||||||||||||||||||||||||
Zaldívar | 199,406 | 0.570 | 2,274 | 317,749 | 0.538 | 3,416 | 517,155 | 0.550 | 5,690 | |||||||||||||||||||||||||||
Osborne | 3,653 | 2.190 | 160 | 4,164 | 1.873 | 156 | 7,817 | 2.021 | 316 | |||||||||||||||||||||||||||
TOTAL | 203,059 | 0.599 | 2,434 | 321,913 | 0.555 | 3,572 | 524,972 | 0.572 | 6,006 | |||||||||||||||||||||||||||
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As at December 31, 2006 | MEASURED (M) | INDICATED (I) | (M) + (I) | INFERRED | ||||||||||||||||||||||||||||||||||||
Tons | Grade(8) | Ounces(9) | Tons | Grade(8) | Ounces(9) | Ounces(9) | Tons | Grade(8) | Ounces(9) | |||||||||||||||||||||||||||||||
Based on attributable ounces | (000’s) | (oz/ton) | (000’s) | (000’s) | (oz/ton) | (000’s) | (000’s) | (000’s) | (oz/ton) | (000’s) | ||||||||||||||||||||||||||||||
NORTH AMERICA | ||||||||||||||||||||||||||||||||||||||||
Goldstrike Open Pit | 12,168 | 0.054 | 655 | 8,016 | 0.045 | 358 | 1,013 | 489 | 0.078 | 38 | ||||||||||||||||||||||||||||||
Goldstrike Underground | 1,185 | 0.393 | 466 | 2,958 | 0.316 | 934 | 1,400 | 2,159 | 0.301 | 650 | ||||||||||||||||||||||||||||||
Goldstrike Property Total | 13,353 | 0.084 | 1,121 | 10,974 | 0.118 | 1,292 | 2,413 | 2,648 | 0.260 | 688 | ||||||||||||||||||||||||||||||
Pueblo Viejo (60%) | 496 | 0.085 | 42 | 15,820 | 0.078 | 1,238 | 1,280 | 32,528 | 0.082 | 2,674 | ||||||||||||||||||||||||||||||
Cortez (60%) | 7,506 | 0.038 | 287 | 19,174 | 0.042 | 800 | 1,087 | 3,925 | 0.131 | 516 | ||||||||||||||||||||||||||||||
Bald Mountain | 15,037 | 0.035 | 527 | 8,252 | 0.036 | 297 | 824 | 17,290 | 0.023 | 398 | ||||||||||||||||||||||||||||||
Turquoise Ridge (75%) | 1,973 | 0.430 | 849 | 1,628 | 0.434 | 707 | 1,556 | 1,471 | 0.493 | 725 | ||||||||||||||||||||||||||||||
Round Mountain (50%) | 4,799 | 0.021 | 103 | 8,268 | 0.019 | 160 | 263 | 16,449 | 0.013 | 216 | ||||||||||||||||||||||||||||||
Ruby Hill | 190 | 0.100 | 19 | 411 | 0.083 | 34 | 53 | — | — | — | ||||||||||||||||||||||||||||||
Hemlo (50%) | 1,461 | 0.108 | 158 | 1,439 | 0.114 | 164 | 322 | 2,854 | 0.142 | 405 | ||||||||||||||||||||||||||||||
Marigold (33%) | 12,683 | 0.018 | 222 | 18,846 | 0.018 | 333 | 555 | 88,212 | 0.011 | 1,012 | ||||||||||||||||||||||||||||||
Golden Sunlight | 952 | 0.061 | 58 | 68 | 0.044 | 3 | 61 | 207 | 0.130 | 27 | ||||||||||||||||||||||||||||||
Eskay Creek | 22 | 0.636 | 14 | 14 | 0.786 | 11 | 25 | 56 | 0.357 | 20 | ||||||||||||||||||||||||||||||
South Arturo (60%) | — | — | — | 12,644 | 0.060 | 754 | 754 | 786 | 0.053 | 42 | ||||||||||||||||||||||||||||||
Donlin Creek (30%) | 4,296 | 0.061 | 260 | 77,745 | 0.073 | 5,666 | 5,926 | 8,196 | 0.058 | 476 | ||||||||||||||||||||||||||||||
SOUTH AMERICA | ||||||||||||||||||||||||||||||||||||||||
Pascua-Lama | 7,681 | 0.048 | 366 | 68,147 | 0.040 | 2,733 | 3,099 | 12,949 | 0.040 | 513 | ||||||||||||||||||||||||||||||
Veladero | 543 | 0.020 | 11 | 4,636 | 0.040 | 184 | 195 | 5,051 | 0.231 | 1,165 | ||||||||||||||||||||||||||||||
Lagunas Norte | 2,267 | 0.034 | 78 | 82,847 | 0.028 | 2,316 | 2,394 | 37,639 | 0.030 | 1,135 | ||||||||||||||||||||||||||||||
Pierina | 122 | 0.033 | 4 | 378 | 0.048 | 18 | 22 | 76 | 0.039 | 3 | ||||||||||||||||||||||||||||||
AUSTRALIA PACIFIC | ||||||||||||||||||||||||||||||||||||||||
Porgera (75%) | 17,083 | 0.058 | 997 | 16,203 | 0.047 | 759 | 1,756 | 11,419 | 0.081 | 926 | ||||||||||||||||||||||||||||||
Kalgoorlie (50%) | 2,649 | 0.065 | 172 | 3,122 | 0.069 | 215 | 387 | 986 | 0.193 | 190 | ||||||||||||||||||||||||||||||
Cowal | 805 | 0.041 | 33 | 22,703 | 0.036 | 823 | 856 | 5,215 | 0.029 | 150 | ||||||||||||||||||||||||||||||
Plutonic | 250 | 0.220 | 55 | 19,458 | 0.147 | 2,858 | 2,913 | 6,729 | 0.188 | 1,263 | ||||||||||||||||||||||||||||||
Kanowna | 2,746 | 0.145 | 397 | 4,436 | 0.115 | 512 | 909 | 13,358 | 0.117 | 1,561 | ||||||||||||||||||||||||||||||
Darlot | 479 | 0.113 | 54 | 2,942 | 0.110 | 323 | 377 | 98 | 0.184 | 18 | ||||||||||||||||||||||||||||||
Granny Smith | 181 | 0.177 | 32 | 1,500 | 0.063 | 95 | 127 | 11,543 | 0.195 | 2,251 | ||||||||||||||||||||||||||||||
Lawlers | 53 | 0.113 | 6 | 7,453 | 0.173 | 1,287 | 1,293 | 761 | 0.179 | 136 | ||||||||||||||||||||||||||||||
Henty | — | — | — | 56 | 0.196 | 11 | 11 | 151 | 0.245 | 37 | ||||||||||||||||||||||||||||||
Osborne | 2,271 | 0.028 | 64 | 2,355 | 0.027 | 63 | 127 | 2,797 | 0.019 | 52 | ||||||||||||||||||||||||||||||
Reko Diq (37.5%)(12) | — | — | 525,797 | 0.007 | 3,610 | 3,610 | 448,085 | 0.010 | 4,376 | |||||||||||||||||||||||||||||||
AFRICA | ||||||||||||||||||||||||||||||||||||||||
Bulyanhulu | — | — | — | 1,202 | 0.483 | 580 | 580 | 7,355 | 0.504 | 3,708 | ||||||||||||||||||||||||||||||
North Mara | 3,647 | 0.096 | 349 | 3,578 | 0.074 | 265 | 614 | 1,134 | 0.086 | 97 | ||||||||||||||||||||||||||||||
Buzwagi | 15 | 0.067 | 1 | 7,204 | 0.056 | 406 | 407 | 1,153 | 0.058 | 67 | ||||||||||||||||||||||||||||||
Tulawaka (70%) | — | — | — | 204 | 0.505 | 103 | 103 | 97 | 0.082 | 8 | ||||||||||||||||||||||||||||||
OTHER | — | — | — | 165 | 0.400 | 66 | 66 | 266 | 0.301 | 80 | ||||||||||||||||||||||||||||||
TOTAL | 103,560 | 0.061 | 6,279 | 949,669 | 0.030 | 28,686 | 34,965 | 741,484 | 0.034 | 24,935 | ||||||||||||||||||||||||||||||
As at December 31, 2006 | MEASURED (M) | INDICATED (I) | (M) + (I) | INFERRED | ||||||||||||||||||||||||||||||||||||
Tons | Grade(8) | Contained lbs(9) | Tons | Grade(8) | Contained lbs(9) | Contained lbs(9) | Tons | Grade(8) | Contained lbs(9) | |||||||||||||||||||||||||||||||
Based on attributable pounds | (000’s) | (%) | (millions) | (000’s) | (%) | (millions) | (millions) | (000’s) | (%) | (millions) | ||||||||||||||||||||||||||||||
Zaldívar | 21,898 | 0.470 | 206 | 60,262 | 0.431 | 520 | 726 | 69,119 | 0.468 | 647 | ||||||||||||||||||||||||||||||
Osborne | 2,271 | 2.356 | 107 | 2,355 | 1.656 | 78 | 185 | 2,797 | 1.448 | 81 | ||||||||||||||||||||||||||||||
Reko Diq (37.5%)(12) | — | — | 525,797 | 0.540 | 5,675 | 5,675 | 448,085 | 0.482 | 4,319 | |||||||||||||||||||||||||||||||
TOTAL | 24,169 | 0.648 | 313 | 588,414 | 0.533 | 6,273 | 6,586 | 520,001 | 0.485 | 5,047 | ||||||||||||||||||||||||||||||
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For the year ended Dec. 31, 2006 | IN PROVEN GOLD RESERVES | IN PROBABLE GOLD RESERVES | TOTAL | |||||||||||||||||||||||||||||||||||||
Tons | Grade(8) | Ounces(9) | Tons | Grade(8) | Ounces(9) | Tons | Grade(8) | Ounces(9) | Process | |||||||||||||||||||||||||||||||
(000s) | (oz/ton) | (000s) | (000s) | (oz/ton) | (000s) | (000s) | (oz/ton) | (000s) | recovery % | |||||||||||||||||||||||||||||||
NORTH AMERICA | ||||||||||||||||||||||||||||||||||||||||
Pueblo Viejo (60%) | 6,504 | 0.59 | 3,843 | 105,890 | 0.46 | 48,794 | 112,394 | 0.47 | 52,637 | 85.0 | % | |||||||||||||||||||||||||||||
Eskay Creek | 104 | 38.66 | 4,021 | 32 | 40.19 | 1,286 | 136 | 39.02 | 5,307 | 89.7 | % | |||||||||||||||||||||||||||||
SOUTH AMERICA | ||||||||||||||||||||||||||||||||||||||||
Pascua-Lama | 38,227 | 1.90 | 72,471 | 352,758 | 1.75 | 616,850 | 390,985 | 1.76 | 689,321 | 78.5 | % | |||||||||||||||||||||||||||||
Lagunas Norte | 10,853 | 0.11 | 1,175 | 194,980 | 0.10 | 20,016 | 205,833 | 0.10 | 21,191 | 19.4 | % | |||||||||||||||||||||||||||||
Veladero | 24,581 | 0.46 | 11,272 | 346,982 | 0.49 | 170,322 | 371,563 | 0.49 | 181,594 | 6.7 | % | |||||||||||||||||||||||||||||
Pierina | 13,784 | 0.20 | 2,690 | 18,850 | 0.16 | 3,013 | 32,634 | 0.17 | 5,703 | 36.1 | % | |||||||||||||||||||||||||||||
AFRICA | ||||||||||||||||||||||||||||||||||||||||
Bulyanhulu | 1,325 | 0.22 | 289 | 29,131 | 0.27 | 7,896 | 30,456 | 0.27 | 8,185 | 65.0 | % | |||||||||||||||||||||||||||||
TOTAL | 95,378 | 1.00 | 95,761 | 1,048,623 | 0.83 | 868,177 | 1,144,001 | 0.84 | 963,938 | 63.7 | % | |||||||||||||||||||||||||||||
(A) | Silver is accounted for as a by-product credit against reported or projected gold production costs. |
For the year ended Dec. 31, 2006 | IN PROVEN GOLD RESERVES | IN PROBABLE GOLD RESERVES | TOTAL | |||||||||||||||||||||||||||||||||||||
Tons | Grade(8) | Contained lbs(9) | Tons | Grade(8) | Contained lbs(9) | Tons | Grade(8) | Contained lbs(9) | Process | |||||||||||||||||||||||||||||||
(000s) | (%) | (millions) | (000s) | (%) | (millions) | (000s) | (%) | (millions) | recovery % | |||||||||||||||||||||||||||||||
NORTH AMERICA | ||||||||||||||||||||||||||||||||||||||||
Pueblo Viejo (60%)(7) | 6,504 | 0.111 | 14 | 105,890 | 0.095 | 200 | 112,394 | 0.096 | 215 | 88.1 | % | |||||||||||||||||||||||||||||
SOUTH AMERICA | ||||||||||||||||||||||||||||||||||||||||
Pascua-Lama | 38,227 | 0.093 | 71 | 352,758 | 0.070 | 494 | 390,985 | 0.072 | 565 | 56.0 | % | |||||||||||||||||||||||||||||
AFRICA | ||||||||||||||||||||||||||||||||||||||||
Buzwagi(7) | 95 | 0.153 | 0.3 | 45,073 | 0.131 | 118 | 45,168 | 0.131 | 119 | 77.6 | % | |||||||||||||||||||||||||||||
Bulyanhulu | 1,325 | 0.426 | 11 | 29,131 | 0.580 | 338 | 30,456 | 0.574 | 349 | 85.0 | % | |||||||||||||||||||||||||||||
TOTAL | 46,151 | 0.105 | 97 | 532,852 | 0.108 | 1,151 | 579,003 | 0.108 | 1,248 | 71.7 | % | |||||||||||||||||||||||||||||
(A) | Copper is accounted for as a by-product credit against reported or projected gold production costs. |
For the year ended Dec. 31, 2006 | MEASURED (M) | INDICATED (I) | (M) + (I) | INFERRED | ||||||||||||||||||||||||||||||||||||
Tons | Grade(8) | Ounces(9) | Tons | Grade(8) | Ounces(9) | Ounces(9) | Tons | Grade(8) | Ounces(9) | |||||||||||||||||||||||||||||||
Based on attributable ounces | (000’s) | (oz/ton) | (000’s) | (000’s) | (oz/ton) | (000’s) | (000’s) | (000’s) | (oz/ton) | (000’s) | ||||||||||||||||||||||||||||||
NORTH AMERICA | ||||||||||||||||||||||||||||||||||||||||
Eskay Creek | 22 | 30.41 | 669 | 14 | 45.36 | 635 | 1,304 | 56 | 8.57 | 480 | ||||||||||||||||||||||||||||||
Pueblo Viejo (60%) | 496 | 0.37 | 183 | 15,820 | 0.28 | 4,363 | 4,546 | 32,528 | 0.12 | 3,981 | ||||||||||||||||||||||||||||||
SOUTH AMERICA | ||||||||||||||||||||||||||||||||||||||||
Lagunas Norte | 808 | 0.16 | 126 | 16,817 | 0.12 | 2,027 | 2,153 | 767 | 0.09 | 70 | ||||||||||||||||||||||||||||||
Pascua-Lama | 7,681 | 0.49 | 3,793 | 68,147 | 0.52 | 35,685 | 39,478 | 12,949 | 0.87 | 11,242 | ||||||||||||||||||||||||||||||
Pierina | 122 | 0.27 | 33 | 378 | 0.24 | 89 | 122 | 76 | 0.08 | 6 | ||||||||||||||||||||||||||||||
Veladero | 543 | 0.17 | 91 | 4,636 | 0.06 | 259 | 350 | 5,051 | 7.32 | 36,983 | ||||||||||||||||||||||||||||||
AFRICA | ||||||||||||||||||||||||||||||||||||||||
Bulyanhulu | — | — | — | 1,202 | 0.30 | 366 | 366 | 7,355 | 0.50 | 3,708 | ||||||||||||||||||||||||||||||
TOTAL | 9,672 | 0.51 | 4,895 | 107,014 | 0.41 | 43,424 | 48,319 | 58,782 | 0.96 | 56,470 | ||||||||||||||||||||||||||||||
For the year ended Dec. 31, 2006 | IN MEASURED (M) GOLD RESOURES | IN INDICATED (I) GOLD RESOURCES | (M) + (I) | INFERRED | ||||||||||||||||||||||||||||||||||||
Based on | Tons | Grade(8) | Contained lbs(9) | Tons | Grade(8) | Contained lbs(9) | Contained lbs(9) | Tons | Grade(8) | Contained lbs(9) | ||||||||||||||||||||||||||||||
attributable ounces | (000’s) | (%) | (millions) | (000’s) | (%) | (millions) | (millions) | (000’s) | (%) | (millions) | ||||||||||||||||||||||||||||||
NORTH AMERICA | ||||||||||||||||||||||||||||||||||||||||
Pueblo Viejo (60%) | 496 | 0.058 | 0.6 | 15,820 | 0.053 | 17 | 17 | 32,528 | 0.031 | 20 | ||||||||||||||||||||||||||||||
SOUTH AMERICA | ||||||||||||||||||||||||||||||||||||||||
Pascua-Lama | 7,681 | 0.070 | 10.8 | 68,147 | 0.072 | 99 | 109 | 12,949 | 0.026 | 6.8 | ||||||||||||||||||||||||||||||
AFRICA | ||||||||||||||||||||||||||||||||||||||||
Buzwagi | 15 | 0.223 | 0.1 | 7,204 | 0.162 | 23 | 23 | 1,153 | 0.251 | 6 | ||||||||||||||||||||||||||||||
TOTAL | 8,192 | 0.070 | 11.5 | 91,171 | 0.076 | 139 | 150 | 46,630 | 0.035 | 33 | ||||||||||||||||||||||||||||||
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Gold | Barrick Mineral Reserves | Placer Dome Mineral Reserves | Processed in | Increase | Mineral Reserves | |||||||||||||||
Property (000’s of ounces)(9) | 12/31/2005(6) | 12/31/2005(6) | 2006 | (decrease) | 12/31/2006(4) | |||||||||||||||
NORTH AMERICA | ||||||||||||||||||||
Goldstrike Open Pit | 14,603 | 1,597 | 116 | 13,122 | ||||||||||||||||
Goldstrike Underground | 2,773 | 531 | 592 | 2,834 | ||||||||||||||||
Goldstrike Property Total | 17,376 | 2,128 | 708 | 15,956 | ||||||||||||||||
Pueblo Viejo (60%)(7) | 8,049 | 0 | 2,824 | 10,873 | ||||||||||||||||
Cortez (60%)(7) | 6,326 | 329 | 694 | 6,691 | ||||||||||||||||
Bald Mountain | 3,390 | 393 | 460 | 3,457 | ||||||||||||||||
Turquoise Ridge (75%) | 3,304 | 182 | 321 | 3,443 | ||||||||||||||||
Round Mountain (50%) | 2,338 | 407 | 21 | 1,952 | ||||||||||||||||
Ruby Hill | 1,011 | 0 | 69 | 1,080 | ||||||||||||||||
Hemlo (50%) | 944 | 217 | (9 | ) | 718 | |||||||||||||||
Marigold (33%) | 689 | 17 | 36 | 708 | ||||||||||||||||
Golden Sunlight | 597 | 130 | (91 | ) | 376 | |||||||||||||||
Eskay Creek | 217 | 132 | 18 | 103 | ||||||||||||||||
South Arturo | — | — | — | — | — | |||||||||||||||
Donlin Creek (30%) | — | — | — | — | — | |||||||||||||||
SOUTH AMERICA | ||||||||||||||||||||
Pascua-Lama | 18,349 | 0 | (1,361 | ) | 16,988 | |||||||||||||||
Veladero | 12,641 | 890 | (383 | ) | 11,368 | |||||||||||||||
Lagunas Norte | 8,266 | 1,411 | 1,949 | 8,804 | ||||||||||||||||
Pierina | 1,916 | 579 | (128 | ) | 1,209 | |||||||||||||||
AUSTRALIA PACIFIC | ||||||||||||||||||||
Porgera (75%) | 6,076 | 435 | 1,426 | 7,067 | ||||||||||||||||
Kalgoorlie (50%) | 4,894 | 399 | 595 | 5,090 | ||||||||||||||||
Cowal | 2,495 | 142 | 834 | 3,187 | ||||||||||||||||
Plutonic | 2,399 | 261 | 109 | 2,247 | ||||||||||||||||
Kanowna | 2,439 | 504 | (11 | ) | 1,924 | |||||||||||||||
Darlot | 914 | 142 | (4 | ) | 768 | |||||||||||||||
Granny Smith | 668 | 322 | 344 | 690 | ||||||||||||||||
Lawlers | 472 | 117 | 71 | 426 | ||||||||||||||||
Henty | 166 | 72 | 103 | 197 | ||||||||||||||||
Osborne | 161 | 42 | 36 | 155 | ||||||||||||||||
Reko Diq (37.5%)(12) | — | — | — | — | — | |||||||||||||||
AFRICA | ||||||||||||||||||||
Bulyanhulu | 10,732 | 377 | 830 | 11,185 | ||||||||||||||||
North Mara | 4,296 | 407 | (613 | ) | 3,276 | |||||||||||||||
Buzwagi(7) | 2,403 | 0 | 237 | 2,640 | ||||||||||||||||
Tulawaka (70%) | 377 | 103 | 56 | 330 | ||||||||||||||||
OTHER(3) | 158 | 0 | 0 | 158 | ||||||||||||||||
TOTAL | 88,591 | 35,472 | 10,138 | 9,141 | 123,066 | |||||||||||||||
Copper | Barrick Mineral Reserves | Placer Mineral Reserves | Processed in | Increase | Mineral Reserves | |||||||||||||||
Property (million pounds) (9) | 12/31/2005 (6) | 12/31/2005(6) | 2006 | (decrease) | 12/31/2006 (4) | |||||||||||||||
Zaldivar | — | 5,854 | 419 | 255 | 5,690 | |||||||||||||||
Osbone | — | 292 | 65 | 89 | 316 | |||||||||||||||
TOTAL | — | 6,146 | 484 | 344 | 6,006 | |||||||||||||||
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(1) | Reflects Barrick’s ownership share where ownership interest is less than 100%. | |
(2) | These mineral resources are in addition to mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability when calculated using mineral reserve assumptions. | |
(3) | Mineral reserves and resources have been calculated as at December 31, 2006. | |
(4) | Mineral reserves have been calculated as at December 31, 2006 using an assumed gold price of $475 (A$640) per ounce, a silver price of $8.50 per ounce, a copper price of $1.50 per pound and exchange rates of $1.21 C$/$U.S. and $0.74 $U.S./A$. Reserves at the Kalgoorlie property assumed a gold price of $500 (A$675) per ounce. Copper reserves at the Osborne property assumed a copper price of $1.75 per pound. Reserve calculations incorporate current and/or expected mine plans and cost levels at each property. | |
(5) | Resources as at December 31, 2006 have been estimated using varying cut-off grades, depending on both the type of mine, its maturity and ore type at each property. An assumed gold price of $525 (A$710) per ounce, a silver price of $9.00 per ounce and a copper price of $1.75 per pound have been used in estimating resources. Copper resources at the Osborne property assumed a copper price of $2.00 per pound. | |
(6) | Barrick’s mineral reserves have been calculated as at December 31, 2005 using an assumed gold price of $400 (A$560) per ounce, a silver price of $6.25 per ounce and an exchange rate of $1.30 C$/$U.S. and $0.72 $U.S./A$. Reserves at the Hemlo and Eskay Creek properties assumed a gold price of $425 per ounce. Reserves at the Hemlo property assumed an exchange rate of $1.20 C$/$U.S. Reserve calculations incorporate current and/or expected mine plans and cost levels at each property. For information on reserves and resources as at December 31, 2005 announced by Placer Dome, see Placer Dome’s press release of February 20, 2006. | |
(7) | Mineral reserves have been calculated in accordance with National Instrument 43-101, as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by Staff of the SEC, applies different standards in order to classify mineralization as a reserve. For U.S. reporting purposes, as at December 31, 2006, 1.88 million ounces of Cortez reserves and the mineralization at the Pueblo Viejo and Buzwagi projects were classified as mineralized material. In addition, while the terms “measured”, “indicated” and “inferred” mineral resources are required pursuant to National Instrument 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the SEC. Investors should understand that “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, investors are cautioned not to assume that any part or all of Barrick’s mineral resources constitute or will be converted into reserves. | |
(8) | Grade represents an average, weighted by reference to tons of ore type where several recovery processes apply. | |
(9) | Ounces or pounds, as applicable, estimated to be present in the tons of ore which would be mined and processed. Mill recovery rates have not been applied in calculating the contained ounces or pounds. |
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(10) | Reserves as at December 31, 2006 include stockpile material totalling approximately 100 million tons, containing approximately 6.9 million ounces. Properties at which stockpile material represents more than 5% of the reported reserves are as follows: |
Contained | |||||||||||||
Tons | Grade | Ounces | |||||||||||
Property | (000’s) | (oz/ton) | (000’s) | ||||||||||
Tulawaka | 259 | 0.116 | 30 | ||||||||||
Kalgoorlie | 13,088 | 0.032 | 418 | ||||||||||
Lawlers | 327 | 0.070 | 23 | ||||||||||
Granny Smith | 3,674 | 0.035 | 129 | ||||||||||
Porgera | 19,726 | 0.071 | 1,405 | ||||||||||
Eskay Creek | 42 | 0.333 | 14 | ||||||||||
Goldstrike | 39,221 | 0.095 | 3,736 | ||||||||||
Round Mountain | 5,668 | 0.021 | 118 |
(11) | The metallurgical recovery applicable at each property and the cut-off grades used to determine reserves as at December 31, 2006 are as follows: |
Metallurgical | |||||||||
Recovery | Cut-off Grade | ||||||||
Mine | (%) | (oz/ton) | |||||||
Goldstrike Property | |||||||||
Open Pit | 83.9 | 0.050-0.070 | |||||||
Underground | 89.9 | 0.293 | |||||||
Pueblo Viejo | 89.8 | 0.050-0.076 | |||||||
Cortez | 78.5 | 0.005-0.302 | |||||||
Bald Mountain | 74.3 | 0.008-0.012 | |||||||
Turquoise Ridge | 90.3 | 0.320-0.363 | |||||||
Round Mountain | 70.0 | 0.007-0.028 | |||||||
Ruby Hill | 74.7 | 0.008-0.010 | |||||||
Hemlo Property | |||||||||
David Bell | 93.0 | 0.213 | |||||||
Williams | 92.9 | 0.024-0.167 | |||||||
Marigold | 72.0 | 0.008 | |||||||
Golden Sunlight | 79.0 | 0.033-0.100 | |||||||
Eskay Creek | 82.3 | 0.925 | |||||||
Pascua-Lama | 82.5 | 0.024-0.090 | |||||||
Veladero | 73.1 | 0.017-0.022 | |||||||
Lagunas Norte | 63.5 | 0.011-0.027 | |||||||
Pierina | 82.4 | 0.011-0.013 | |||||||
Porgera | 87.2 | 0.038-0.146 | |||||||
Kalgoorlie | 86.0 | 0.026 | |||||||
Cowal | 80.0 | 0.015-0.017 | |||||||
Plutonic | 90.1 | 0.011-0.117 | |||||||
Kanowna | 90.9 | 0.026-0.219 | |||||||
Darlot | 96.0 | 0.058-0.112 | |||||||
Granny Smith | 89.0 | 0.097 |
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Metallurgical | |||||||||
Recovery | Cut-off Grade | ||||||||
Mine | (%) | (oz/ton) | |||||||
Lawlers | 95.2 | 0.109 | |||||||
Henty | 93.6 | 0.191 | |||||||
Osborne (Gold) | 69.3 | n/a | |||||||
Bulyanhulu | 92.0 | 0.219-0.241 | |||||||
North Mara | 89.93 | 0.035-0.038 | |||||||
Buzwagi | 93.8 | 0.025 | |||||||
Tulawaka | 94.61 | 0.047-0.104 |
Metallurgical | |||||||||
Recovery | Cut-off Grade | ||||||||
Mine | (%) | (%) | |||||||
Zaldívar | 70.3 | 0.214 | |||||||
Osborne (Copper) | 89.7 | 1.22 |
(12) | Gold and copper resource estimates for Reko Diq have been prepared by employees and consultants of Tethyan Copper Company Limited (“Tethyan”) in accordance with the JORC Code. For additional information related to Reko Diq resources reported by Tethyan, including related assumptions, see Tethyan’s press release dated January 11, 2006 and its 2005 Fourth Quarter Report. Such resource estimates have been reviewed by Jacques McMullen, Vice President, Metallurgy and Process Development of Barrick, Rick Allan, Director — Engineering and Mining Support of Barrick, and Rick Sims, Manager Corporate Reserves of Barrick. The inferred and indicated mineral resource amounts reported under the JORC Code are substantially similar to the inferred and indicated mineral resource amounts that would be reported in accordance with National Instrument 43-101. |
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Year ended | Year ended | |||||||
December 31, 2006 | December 31, 2005 | |||||||
Tons mined (000’s) | 131,229 | 129,833 | ||||||
Tons of ore processed (000’s) | 10,507 | 10,097 | ||||||
Average grade processed (ounces per ton) | 0.152 | 0.175 | ||||||
Recovery rate (%) | 86.9 | 85.6 | ||||||
Ounces of gold produced (000’s) | 1,388 | 1,514 | ||||||
Average total cash costs per ounce1 | $ | 289 | $ | 235 |
1. | For an explanation of total cash costs per ounce, refer to “Narrative Description of the Business – Production and Total Cash Costs”. |
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Year ended | Year ended | |||||||
December 31, 2006 | December 31, 2005 | |||||||
Tons mined (000’s) | 1,420 | 1,463 | ||||||
Tons of ore processed (000’s) | 1,425 | 1,488 | ||||||
Average grade processed (ounces per ton) | 0.373 | 0.381 | ||||||
Recovery rate (%) | 89.8 | 89.9 | ||||||
Ounces of gold produced (000’s) | 477 | 510 | ||||||
Average total cash costs per ounce1 | $ | 351 | $ | 314 |
1. | For an explanation of total cash costs per ounce, refer to “Narrative Description of the Business – Production and Total Cash Costs”. |
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Year ended | Year ended | |||
December 31, 2006 | December 31, 20051 | |||
Tons mined (000’s) | 27,353 | 23,653 | ||
Tons of ore processed (000’s) | 21,437 | 14,269 | ||
Average grade processed (ounces per ton) | 0.066 | 0.060 | ||
Ounces of gold produced (000’s) | 1,084 | 550 | ||
Average total cash costs per ounce2 | $100 | $110 |
1. | Lagunas Norte began production in the second quarter of 2005. | |
2. | For an explanation of total cash costs per ounce, refer to “Narrative Description of the Business – Production and Total Cash Costs”. |
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Year ended | Year ended | |||||||
December 31, 2006 | December 31, 20051 | |||||||
Tons mined (000’s) | 81,996 | 63,514 | ||||||
Tons of ore processed (000’s) | 15,070 | 4,513 | ||||||
Average grade processed (ounces per ton) | 0.059 | 0.022 | ||||||
Ounces of gold produced (000’s) | 511 | 56 | ||||||
Average total cash costs per ounce2 | $168 | n/a |
1. | Veladero completed its first gold pour in 2005. | |
2. | For an explanation of total cash costs per ounce, refer to “Narrative Description of the Business – Production and Total Cash Costs”. |
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Year ended | Year ended | |||||
December 31, 20061 | December 31, 20053 | |||||
Tons mined (000’s) | 82,678 | n/a | ||||
Tons of ore processed (000’s) | 26,404 | n/a | ||||
Average grade processed (% of TCu) | 0.92 | n/a | ||||
Pounds of copper produced (000,000’s) | 308 | n/a | ||||
Average total cash costs per pound2 | $ | 0.62 | n/a |
1. | Barrick’s share of the acquired Placer Dome mines’ production and costs per ounce/pound reflect the results from January 20, 2006. | |
2. | For an explanation of total cash costs per pound, refer to “Narrative Description of the Business – Production and Total Cash Costs”. | |
3. | The 2005 comparative period for copper has been omitted as Barrick did not produce any significant amount of copper prior to the production from the copper mines acquired with Placer Dome. |
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• | Barrick may need to use a large portion of its cash flow to repay principal and pay interest on its debt, which will reduce the amount of funds available to finance its operations and other business activities; and | ||
• | Barrick’s debt level may limit its ability to pursue other business opportunities, borrow money for operations or capital expenditures in the future or implement its business strategy. |
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RESULTS OF OPERATIONS
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Rating Agency | ||||||||||||
Moody’s Investors | Standard & Poor’s | Dominion Bond | ||||||||||
Service | Ratings Services | Rating Service | ||||||||||
Senior Unsecured Debt | Baa1 | A- | A | |||||||||
Municipal bonds, due 2029(1) | Aa1/VMIG1 | AAA/A-1+ | Not Rated | |||||||||
Municipal bonds, due 2032(1) | Aa2/P-1 | Not Rated | Not Rated |
1. | Barrick, through two wholly-owned subsidiaries, issued a total of $63 million of tax exempt, variable rate, solid waste disposal bonds. The bonds are guaranteed by Barrick and no principal payments are required until cancellation, redemption or maturity. A portion of such bonds mature in 2029, with the remainder maturing in 2032. |
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Toronto Stock Exchange | New York Stock Exchange | ||||||||||||||||||||||||
Share Price Trading | Share Price Trading | ||||||||||||||||||||||||
Range | Share Volume | Range | Share Volume | ||||||||||||||||||||||
High | Low | High | Low | ||||||||||||||||||||||
2006 | (C$ per share) | (millions) | ($ per share) | (millions) | |||||||||||||||||||||
January | 35.70 | 33.30 | 81.4 | 31.46 | 28.82 | 93.4 | |||||||||||||||||||
February | 35.35 | 31.05 | 64.7 | 30.98 | 27.36 | 66.6 | |||||||||||||||||||
March | 32.08 | 29.86 | 69.6 | 28.18 | 25.65 | 73.9 | |||||||||||||||||||
April | 35.32 | 32.47 | 49.9 | 31.11 | 27.74 | 65.3 | |||||||||||||||||||
May | 38.65 | 33.60 | 71.9 | 35.23 | 30.06 | 102.2 | |||||||||||||||||||
June | 33.83 | 29.95 | 58.4 | 30.69 | 26.89 | 70.2 | |||||||||||||||||||
July | 34.74 | 32.11 | 40.4 | 30.80 | 28.28 | 52.7 | |||||||||||||||||||
August | 37.34 | 34.35 | 52.6 | 33.48 | 30.51 | 57.1 | |||||||||||||||||||
September | 37.78 | 31.78 | 53.5 | 34.04 | 28.35 | 66.4 | |||||||||||||||||||
October | 34.75 | 31.96 | 51.4 | 31.00 | 28.41 | 65.8 | |||||||||||||||||||
November | 35.76 | 32.53 | 68.6 | 31.44 | 28.34 | 67.4 | |||||||||||||||||||
December | 35.90 | 34.36 | 36.9 | 31.50 | 29.90 | 45.3 | |||||||||||||||||||
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Name (age) and municipality of | Office | |||
residence | (date became an Officer) | Principal occupations during past 5 years | ||
Peter Munk(79) Toronto, Ontario Canada | Chairman and Director (1984) | Chairman of the Company; Chairman of Trizec Properties, Inc. (real estate) and Chairman and Chief Executive Officer, Trizec Canada Inc. (real estate); prior to May 2002, Chairman, TrizecHahn Corporation (real estate). | ||
C. William D. Birchall(64) Toronto, Ontario Canada | Vice Chairman and Director (2005) | Vice Chairman of the Company; prior to July 2005, Chief Executive Officer of ABX Financeco Inc., a Barrick subsidiary; prior to January 2005, Chairman of Barrick International Bank Corp., a Barrick subsidiary. | ||
Gregory C. Wilkins (51) Toronto, Ontario Canada | President and Chief Executive Officer(2003)and Director (1991) | President and Chief Executive Officer of the Company; prior to February 2003, Corporate Director of the Company; prior to May 2002, Vice-Chairman, TrizecHahn Corporation (real estate); prior to March 2001, President and Chief Operating Officer, TrizecHahn Corporation. | ||
Alexander J. Davidson(55) Toronto, Ontario Canada | Executive Vice President, Exploration and Corporate Development(1993) | Executive Vice President, Exploration and Corporate Development of the Company; prior to March 2005, Executive Vice President, Exploration of the Company; prior to May 2003, Senior Vice President, Exploration of the Company. |
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Name (age) and municipality of | Office | |||
residence | (date became an Officer) | Principal occupations during past 5 years | ||
Gordon Fife(48) Newmarket, Ontario Canada | Executive Vice President, Organization Effectiveness (2002) | Executive Vice President, Organization Effectiveness of the Company; prior to May 2006, Senior Vice President, Organization Effectiveness of the Company; prior to February 2004, Vice President, Organizational Effectiveness of the Company. | ||
Patrick J. Garver(55) Toronto, Ontario Canada | Executive Vice President and General Counsel(1993) | Executive Vice President and General Counsel of the Company. | ||
Peter J. Kinver(51) Toronto, Ontario Canada | Executive Vice President and Chief Operating Officer (2003) | Executive Vice President and Chief Operating Officer of the Company; prior to February 2004, Executive Vice President, Operations of the Company; prior to August 2003, Divisional Director, Western Division, Anglo American Platinum plc (platinum mining). | ||
Jamie C. Sokalsky(49) Toronto, Ontario Canada | Executive Vice President and Chief Financial Officer(1993) | Executive Vice President and Chief Financial Officer of the Company; prior to April 2004, Senior Vice President and Chief Financial Officer of the Company. | ||
Gregory A. Lang(52) Sandy, Utah U.S.A. | President, North America (2001) | President, North America of the Company; prior to September 2005, Vice President North America Operations of the Company; prior to February 2004, Vice President, Australian Operations of the Company; prior to December 2001, Vice President, Australia, Homestake Mining Company (gold mining). | ||
Igor Gonzales(52) La Molina, Lima, Peru | President, South America (2004) | President, South America of the Company; prior to September 2005, Vice President, Peru of the Company; prior to February 2004, Vice President and General Manager, Pierina mine, of the Company. | ||
Joc O’Rourke(46) Perth, Australia | President, Australia-Pacific (2006) | President, Australia Pacific of the Company; prior to May 2006, Executive General Manager, Australia for Placer Dome; prior to January 2005, General Manager WA Operations, at Iluka Resources Limited; prior to August 2003, General Manager, Operations at Minara Resources Ltd. |
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(a) | retaining and terminating, and/or making recommendations to the Board of Directors and the shareholders with respect to the retention or termination of, an external auditing firm to conduct review engagements on a quarterly basis and an annual audit of the Company’s financial statements; | ||
(b) | communicating to the external auditors that they are ultimately accountable to the Board and the Committee as representatives of the shareholders; | ||
(c) | obtaining and reviewing an annual report prepared by the external auditors describing: the firm’s internal quality-control procedures; any material issues raised by the most recent internal quality-control review, or peer review, of the firm, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the firm, and any steps taken to deal with any such issues; | ||
(d) | evaluating the independence of the external auditor and any potential conflicts of interest and (to assess the auditors’ independence) all relationships between the external auditors and the Company, including obtaining and reviewing an annual report prepared by the external auditors describing all relationships between the external auditors and the Company; | ||
(e) | approving, or recommending to the Board of Directors for approval, all audit engagement fees and terms, as well as all non-audit engagements of the external auditors prior to the commencement of the engagement; |
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(f) | reviewing with the external auditors the plan and scope of the quarterly review and annual audit engagements; | ||
(g) | setting hiring policies with respect to the employment of current or former employees of the external auditors; |
(h) | reviewing, discussing and recommending to the Board for approval the annual audited financial statements and related “management’s discussion and analysis of financial and operating results” prior to filing with securities regulatory authorities and delivery to shareholders; | ||
(i) | reviewing and discussing with the external auditors the results of their reviews and audit, any issues arising and management’s response, including any restrictions on the scope of the external auditors’ activities or requested information and any significant disagreements with management, and resolving any disputes; | ||
(j) | reviewing, discussing and approving, or recommending to the Board for approval, the quarterly financial statements and quarterly “management’s discussion and analysis of financial and operating results” prior to filing with securities regulatory authorities and delivery to shareholders; | ||
(k) | reviewing and discussing with management and the external auditors the Company’s critical accounting policies and practices, material alternative accounting treatments, significant accounting and reporting judgments, material written communications between the external auditor and management (including management representation letters and any schedule of unadjusted differences) and significant adjustments resulting from the audit or review; | ||
(1) | reviewing and discussing with management the Company’s earnings press releases, as well as type of financial information and earnings guidance (if any) provided to analysts and ratings agencies; | ||
(m) | reviewing and discussing such other relevant public disclosures containing financial information as the Committee may consider necessary or appropriate; | ||
(n) | reviewing and discussing with management the disclosure controls relating to the Company’s public disclosure of financial information, including information extracted or derived from the financial statements, and periodically assess the adequacy of such procedures; |
(o) | reviewing and discussing with management, the external auditors and the head of internal audit the effectiveness of the Company’s internal controls over financial reporting, including reviewing and discussing any significant deficiencies in the design or operation of internal controls, and any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal controls over financial reporting; |
(p) | discussing the Company’s process with respect to risk assessment (including fraud risk), risk management and the Company’s major financial risks and financial reporting exposures, all |
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as they relate to internal controls over financial reporting, and the steps management has taken to monitor and control such risks; |
(q) | reviewing and discussing with management the Company’s Code of Business Conduct and Ethics and anti-fraud program and the actions taken to monitor and enforce compliance; |
(r) | establishing procedures for: |
(i) | the receipt, retention and treatment of complaints regarding accounting, internal controls or auditing matters; and |
(ii) | the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting, internal controls or auditing matters; |
(s) | reviewing and discussing with management, the external auditors and the head of internal audit the responsibilities and effectiveness of the Company’s internal audit function, including reviewing the internal audit mandate, independence, organizational structure, internal audit plans and adequacy of resources, receiving periodic internal audit reports and meeting privately with the head of internal audit on a periodic basis; | ||
(t) | approving in advance the retention and dismissal of the head of internal audit; |
(u) | meeting separately, periodically, with each of management, the head of internal audit and the external auditors; | ||
(v) | reporting regularly to the Board; | ||
(w) | reviewing and assessing its mandate and recommending any proposed changes to the Corporate Governance and Nominating Committee of the Board on an annual basis; and | ||
(x) | evaluating the functioning of the Committee on an annual basis, including with reference to the discharge of its mandate, with the results to be reported to the Corporate Governance and Nominating Committee, which shall report to the Board. |
(a) | working with the Chairman of the Board, the Chief Executive Officer and the Secretary to establish the frequency of Committee meetings and the agendas for meetings; | ||
(b) | providing leadership to the Committee and presiding over Committee meetings; | ||
(c) | facilitating the flow of information to and from the Committee and fostering an environment in which Committee members may ask questions and express their viewpoints; |
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(d) | reporting to the Board with respect to the significant activities of the Committee and any recommendations of the Committee; | ||
(e) | leading the Committee in annually reviewing and assessing the adequacy of its mandate and evaluating its effectiveness in fulfilling its mandate; and | ||
(f) | taking such other steps as are reasonably required to ensure that the Committee carries out its mandate. |
1 | For purposes of this mandate, “financially literate” means the ability to read and understand a balance sheet, an income statement, a cash flow statement and the related notes that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Company’s financial statements, and “accounting or related financial management expertise” means the ability to analyze and interpret a full set of financial statements, including the related notes that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Company’s financial statements. |
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Donald J. Carty,60 | Mr. Carty is Vice Chairman and Chief Financial Officer of Dell, Inc., | |
Dallas, Texas, USA | a computer company. From 1998 to 2003, he was the Chairman and | |
Chief Executive Officer of AMR Corp. and American Airlines. Mr. | ||
Carty is the Chairman of Porter Aviation Holdings Inc. and Porter | ||
Airlines Inc. Mr. Carty is also a director of CHC Helicopter | ||
Corporation, Sears Holding Corp., Solution Inc. Ltd., and Big | ||
Brothers Big Sisters. He is a trustee of Southern Methodist University. | ||
He holds an undergraduate degree and an honorary doctor of laws | ||
from Queen’s University and a master’s degree in business | ||
administration from Harvard University. Mr. Carty is an Officer of the | ||
Order of Canada. | ||
Peter A. Crossgrove,70 | Mr. Crossgrove is a corporate director. Prior to May 2005, Mr. | |
Toronto, Ontario, Canada | Crossgrove was the Chairman of Masonite International Corporation, | |
a door manufacturing company. He is also a director of Quadra Logic | ||
Technologies Inc., Dundee REIT, Excellon Resources and West | ||
Timmins Mining Inc. Mr. Crossgrove is the Chairman of Cancer | ||
CARE Ontario and Chairman of the Canadian Association of | ||
Provincial Cancer Agencies. He holds an undergraduate degree from | ||
McGill University and Concordia University and a master’s degree in | ||
business administration from the University of Western Ontario. Mr. | ||
Crossgrove is a recipient of the Queen’s Jubilee Medal and an Officer | ||
of the Order of Canada. |
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John W. Crow,70 | Mr. Crow is President of J&R Crow Inc., an economic and financial | |
Toronto, Ontario, Canada | consulting firm. He is also a director of Rockwater Capital | |
Corporation, High Income Principal and Yield Corporation, High | ||
Income Preferred Shares Corporation, Coastal Income Corporation | ||
and OFI Income Fund. He is a Senior Fellow of the CD. Howe | ||
Institute and the Chairman of Arts for Children of Toronto. Mr. Crow | ||
served as the Governor of the Bank of Canada from 1987 to 1994. Mr. | ||
Crow holds an undergraduate degree from Oxford University. | ||
Steven J. Shapiro,54 | Mr. Shapiro is a corporate director. Prior to May 2006, he was | |
Houston, Texas, USA | Executive Vice President, Finance and Corporate Development, and a | |
director of Burlington Resources, Inc., an oil and gas exploration and | ||
production company. Prior to April 2005, he was Executive Vice | ||
President and Chief Financial Officer of Burlington Resources, Inc., | ||
and prior to January 2003, he was Senior Vice President and Chief | ||
Financial Officer of Burlington Resources, Inc. He is also a director of | ||
El Paso Corporation. He serves as chairman of the executive | ||
committee of the American Petroleum Institute’s general committee | ||
on finance. Mr. Shapiro holds an undergraduate degree from Union | ||
College and a master’s degree in business administration from | ||
Harvard University. |
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Fees | 2006 | 2005 | ||||||
(amount in millions) | ||||||||
Audit Fees1 | $ | 7.2 | $ | 2.9 | ||||
Audit-Related Fees2 | 0.2 | 0.7 | ||||||
Tax Fees3 | 1.7 | 0.5 | ||||||
All Other Fees4 | 0.1 | 0.1 | ||||||
Total | $ | 9.2 | $ | 4.2 | ||||
1 | Audit Fees comprise professional services for the audit of Barrick’s annual financial statements, review of Barrick’s interim financial statements, and services normally provided in connection with Barrick’s statutory and regulatory filings. The Audit Fees for 2006 have increased by $4.3 million compared to 2005 primarily due to the acquisition of Placer Dome and 2006 being the first year of attestation under Section 404 of the Sarbanes-Oxley Act. | |
2 | Audit-Related Fees comprise amounts paid for consultations on accounting developments and the accounting for potential corporate transactions. In 2005, Audit-Related Fees included approximately $675,000 for Sarbanes-Oxley preparation services. | |
3 | Tax Fees comprise amounts paid for tax compliance and advisory services. | |
4 | In 2006, Other Fees included approximately $64,000 for non-audit related services. In 2005, Other Fees included approximately $50,000 for non-audit related services. |
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