All amounts expressed in U.S. dollars unless otherwise indicated

•Barrick reported a net loss of $94 million ($0.08 per share), and adjusted net earnings1 of $81 million ($0.07 per share) for the second quarter.
•The Company reported second quarter revenues of $1.71 billion, net cash provided by operating activities ("operating cash flow") of $141 million, and negative free cash flow2 of $172 million.
•Gold production in the second quarter was 1.07 million ounces, at a cost of sales applicable to gold3 of $882 per ounce, all-in sustaining costs4 of $856 per ounce, and cash costs4 of $605 per ounce.
•Copper production was 83 million pounds, at a cost of sales applicable to copper3 of $2.45 per pound, all-in sustaining costs5 of $3.04 per pound, and C1 cash costs5 of $2.10 per pound.
•Based on further positive drill results, Barrick is announcing a new, high grade gold discovery at Fourmile, located within the Cortez District in Nevada. The Company has also allocated additional funding for drilling at the project over the remainder of 2018.
•Growth projects in Nevada and Dominican Republic continue to progress according to schedule and within budget.
•Subsequent to the quarter end, total debt has been reduced from approximately $6.4 billion to $5.8 billion, bringing Barrick's total debt repayments over the past five years to $10 billion.
•Full-year gold production and cost guidance remains unchanged at 4.5-5.0 million ounces, at a cost of sales3 of $810-$850 per ounce, all-in sustaining costs4 of $765-$815 per ounce, and cash costs4 of $540-$575 per ounce.
•Full-year copper production is expected to be 345-410 million pounds, at a cost of sales3 of $2.00-$2.30 per pound, all-in sustaining costs5 of $2.55-$2.85 per pound, and C1 cash costs5 of $1.80-$2.00 per pound.

TORONTO — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) ("Barrick" or the "Company") today reported second quarter results for the period ending June 30, 2018. Gold production and costs for the quarter were in line with expectations, with earnings and cash flow impacted by planned maintenance activities at Barrick Nevada and Pueblo Viejo. The Company remains on track to meet full-year gold production guidance, with higher production and lower costs expected in the second half of 2018.

Our Nevada growth projects at Cortez, Goldrush, and Turquoise Ridge continued to advance according to schedule and within budget, underpinning the next generation of profitable production from this core region for Barrick. In addition, our pipeline continues to grow with the announcement today of a new, high grade gold discovery at Fourmile, located just two kilometers north of the Goldrush project in Nevada. This discovery demonstrates the significant untapped geological potential of Barrick's properties in Nevada, where the Company is evaluating a project to increase processing capacity in order to accommodate new production from organic projects, and bring forward production from stockpiles. Prefeasibility level studies in support of a plant expansion at the Pueblo Viejo mine in the Dominican Republic are also advancing, with a pilot heap leach pad now in operation at the site.

Partnerships form a core element of our strategy to drive long-term value. On July 9, Barrick and Shandong Gold Group signed an enhanced strategic cooperation agreement, reflecting Barrick's unique focus on creating distinctive, enduring, and trust-based relationships with China and China's best companies, as we jointly explore opportunities to enhance long-term value for our respective owners, and for our government and community partners. Under the agreement, Shandong is currently completing an independent evaluation focused on the potential to develop a mining project at Lama in Argentina, including a high-level evaluation of potential synergies between Lama and the nearby Veladero operation.

Outlook

Our 2018 consolidated gold production guidance remains unchanged at 4.5-5.0 million ounces, at a cost of sales3 of $810-$850 per ounce, cash costs4 of $540-$575 per ounce, and all-in sustaining costs4 of $765-$815 per ounce.

We expect gold production and costs to improve steadily over the second half of the year, driven by stronger performance at Barrick Nevada and Pueblo Viejo. Gold production in the third quarter is anticipated to be around 1.2 million ounces.

At Barrick Nevada, throughput and grade is expected to improve due to the completion of scheduled maintenance shutdowns in the first half of the year, as well as increased production from the Cortez Hills open pit. At Pueblo Viejo, we expect an increase in quarter-over-quarter production as we transition to higher grades in Phase Five and Six of the Moore Pit. Third quarter throughput is expected to remain in line with the second quarter as we complete the second of two scheduled autoclave maintenance shutdowns for the year. We anticipate higher grades at Pueblo Viejo to persist into the fourth quarter, with higher throughput. Full processing capacity has also been restored at the Porgera Joint Venture earlier than initially expected, following the earthquake that struck Papua New Guinea in late February.

We expect to produce 345-410 million pounds of copper in 2018 at a cost of sales3 of $2.00-$2.30 per pound, C1 cash costs5 of $1.80-$2.00 per pound, and all-in sustaining costs5 of $2.55-$2.85 per pound. Copper production is anticipated to improve progressively over the third and fourth quarters, driven by a steady improvement in grade and crusher reliability at Lumwana, as well as an optimization of stacking procedures at Zaldívar.

Total attributable capital expenditure guidance6 for 2018 remains unchanged at $1.40-$1.60 billion, including mine site sustaining capital7 of $0.95-$1.10 billion, and project capital expenditures8 of $450-$550 million.

We are adjusting our 2018 effective income tax rate guidance to 44-46 percent, compared to our initial guidance of 41-43 percent, reflecting lower spot gold prices and sales mix.

Financial Highlights

The Company reported a net loss of $94 million ($0.08 per share) in the second quarter and adjusted net earnings1 of $81 million ($0.07 per share). Operating cash flow was $141 million. Lower adjusted net earnings and operating cash flow compared to the prior-year period primarily reflect the impact of lower gold sales. In addition, while total direct mining costs were in line with the prior-year period, direct mining costs on a per ounce basis increased, primarily due to the impact of fewer ounces sold, as well as expenses associated with planned maintenance at the Barrick Nevada roaster and the Pueblo Viejo autoclaves, and higher fuel costs. This was partially offset by higher realized gold prices9, lower income tax expense, and lower depreciation as a result of lower sales volumes. While income tax expenses were lower than the prior-year period, our second quarter effective tax rate increased from 46 percent in 2017 to 48 percent in 2018, bringing our 2018 year-to-date effective tax rate to 44 percent.

Significant adjusting items impacting net earnings in the second quarter of 2018 included (pre-tax and non-controlling interest effects):
•$75 million in foreign currency translation losses primarily related to the significant weakening of the Argentinean peso;
•$59 million in net impairment charges primarily related to the Kabanga project (a joint venture between Barrick and Glencore) and Acacia's Nyanzaga project; and
•$43 million in other expense adjustments, including $28 million relating to staffing reductions and office closures associated with the implementation of our decentralized operating model.

During the second quarter of 2018, we implemented a number of organizational reductions to advance the implementation of our decentralized operating model. We completed an extensive review of all positions sitting above operations, reallocating roles where appropriate, eliminating those no longer required and closing a number of smaller offices. We are maintaining our full-year general and administrative expense guidance, as the expected savings from these changes are offset by approximately $30 million of severance expense.

Refer to page 48 for a full list of reconciling items between net earnings and adjusted net earnings for the current and prior-year periods.

The Company recorded negative free cash flow2 of $172 million in the second quarter, driven by lower operating cash flows as described above. This was partially offset by lower capital expenditures compared to the prior-year period.

Balance Sheet Update

At the end of the second quarter, the Company had a consolidated cash balance of approximately $2.1 billion10. Subsequent to the end of the quarter, Barrick completed a make-whole repurchase of the outstanding principal of approximately $629 million on the Company's 4.40 percent notes due in 2021. As result, our total debt has been reduced from approximately $6.4 billion to $5.8 billion, further strengthening the Company's balance sheet. Over the past five years, Barrick has reduced its total debt by $10 billion.

Following this repayment, the Company has less than $100 million in debt due before 202011, and more than 85 percent of our outstanding debt matures after 2032.

Operating Highlights

Barrick produced 1.07 million ounces of gold in the second quarter of 2018 at a cost of sales3 of $882 per ounce, all-in sustaining costs4 of $856 per ounce, and cash costs4 of $605 per ounce, in line with expectations. Gold production in the second quarter was impacted by lower grade and recovery at the Barrick Nevada oxide mill, and scheduled maintenance shutdowns at the Barrick Nevada roaster and the Pueblo Viejo autoclaves. Both shutdowns were successfully optimized, reflecting the Company's focus on increasing the overall availability of our processing facilities by consolidating work and extending the time between planned maintenance activities.

Second quarter production at the Porgera Joint Venture was impacted by a significant earthquake that occurred in late February, resulting in a change to the mine's full-year guidance. However, full processing capacity has been restored at the mine, earlier than initially anticipated. A rock fall at the Kalgoorlie open pit in mid-May also impacted production in the second quarter, with lower mining rates expected for the remainder of the year.

During the second quarter, the Turquoise Ridge mine implemented a more efficient system for the shipping of ore for processing. Previously, ore was stockpiled on site before being shipped to Newmont's Twin Creeks facility for processing. Ore will now be shipped directly to Twin Creeks, eliminating double handling of the material. This change will eliminate one month of stockpiled material in 2018, resulting in a one-time change in inventory that will increase costs this year.

On a per ounce basis, cost of sales applicable to gold3 was higher than the prior-year period primarily due to the impact of fewer ounces sold. Direct mining costs on a per ounce basis also increased, primarily due to the impact of fewer ounces sold, costs associated with planned maintenance at the Barrick Nevada roaster and the Pueblo Viejo autoclaves, and higher fuel costs. Higher all-in sustaining costs4 compared to the prior-year period primarily reflect the impact of higher direct mining costs on a per ounce basis, as described above.

The Company produced 83 million pounds of copper in the second quarter, at a cost of sales3 of $2.45 per pound, all-in sustaining costs5 of $3.04 per pound, and C1 cash costs5 of $2.10 per pound. Lower copper production in the second quarter was primarily the result of unplanned downtime at the Lumwana crusher, and fewer heap leach tonnes processed at Zaldívar, partially offset by an increase in production at Jabal Sayid.

On a per pound basis, cost of sales applicable to copper3 increased primarily due to higher processing and maintenance costs at Lumwana, and higher unit production costs as a result of lower sales at Zaldívar. Higher all-in sustaining costs primarily reflected higher direct mining costs applicable to copper.

Please see page 35 of Barrick's second quarter MD&A for individual operating segment performance details. Detailed mine site guidance information can be found in Appendix 1 of this press release.

see & read more on
https://barrick.com/news/news-details/2018/Barrick-Reports-Second-Quarter-2018-Results/default.aspx