Barrick Reports Q4 2010 Financial and Operating Results

TORONTO, ONTARIO--(Marketwire - Feb. 17, 2011) - Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) -

FOURTH QUARTER AND YEAR-END REPORT 2010

Based on US GAAP and expressed in US dollars

For a full explanation of results, the Financial Statements and Management Discussion & Analysis, 2011 outlook, mine statistics and mineral reserves and resources, please see the Company's website, www.barrick.com.

Highlights:

• Q4 reported net income was a record $896 million ($0.90 per share). Q4 adjusted net income rose 57% to $947 million ($0.95 per share)¹ compared to $604 million ($0.61 per share) in Q4 2009. Operating cash flow was $781 million and adjusted operating cash flow set a new Company record rising 56% to $1.44 billion¹ from $921 million in the prior year period.

• Q4 gold production of 1.70 million ounces at total cash costs of $486 per ounce¹ or net cash costs of $326 per ounce¹ was in line with expectations on a strong performance from the North America region. Higher production and lower cash costs were realized in 2010 as compared to the prior year. Full year production of 7.77 million ounces at total and net cash costs of $457 and $341 per ounce¹, respectively, was in line with original guidance despite higher royalties and taxes associated with higher gold prices.

• Q4 cash margins continued to benefit from rising gold prices increasing 35% to $882 per ounce¹ from $654 per ounce in Q4 2009 and net cash margins rose 29% to $1,042 per ounce¹ from $809 per ounce in the prior year period.

• The average gold price increased 26% in 2010 while full year adjusted net income rose 81% to $3.28 billion¹ and adjusted operating cash flow increased 65% to $4.78 billion¹ from 2009, demonstrating the Company's exceptional leverage to the gold price. Full year adjusted net income translated to a higher return on equity of 19%¹ from 12% in 2009.  Reported net income and operating cash flow in 2010 were $3.27 billion and $4.13 billion, respectively.

• 2011 production is expected to be comparable to 2010 in the range of 7.6-8.0 million ounces at total cash costs of $450-$480 per ounce and net cash costs of $340-$380 per ounce² (IFRS basis).

• The newly expanded Cortez mine exceeded expectations in its first full year of production and the Company continues to advance its project pipeline, including the world-class Pueblo Viejo and Pascua-Lama projects. Preproduction capital budgets are expected to be higher than previous estimates by about 10-15% to $3.3-$3.5 billion (100% basis) and 10-20% to $3.3-$3.6 billion for Pueblo Viejo and Pascua-Lama, respectively. Despite these increases, Pueblo Viejo and Pascua-Lama continue to have very strong economics. Once at full capacity, these two mines are anticipated to contribute about 1.4 million ounces³ of annual production at low cash costs.

• The Company replaced proven and probable gold reserves to an industry leading 139.8 million ounces⁴ at the end of 2010. Measured and indicated gold resources increased by 14.5 million ounces or 24% to 76.3 million ounces⁴ and inferred gold resources grew by 5.6 million ounces or 18% to 37.2 million ounces⁴.

• Barrick continues to have a strong financial position, including a quarter-end cash balance of $4.0 billion, low net debt of $2.5 billion¹ and robust operating cash flow generation.

Q4 production of 1.70 million ounces of gold was in line with expectations at total and net cash costs of $486 and $326 per ounce, respectively. Full year production of 7.77 million ounces at total and net cash costs of $457 and $341 per ounce, respectively, was in line with original guidance despite higher royalties and taxes associated with higher realized gold prices. The realized gold price for the quarter was a record $1,368 per ounce⁵, 22% higher than the prior year period. Q4 cash margins increased 35% to $882 per ounce from $654 per ounce in Q4 2009 and net cash margins rose 29% to $1,042 per ounce from $809 per ounce in the same prior year period.

Q4 adjusted net income rose 57% to $947 million ($0.95 per share), compared to $604 million ($0.61 per share) in Q4 2009, reflecting higher gold sales volume and higher realized prices for both gold and copper. Reported Q4 net income of $896 million ($0.90 per share) was a Company record. Q4 operating cash flow of $781 million reflects payments to eliminate the remaining settlement obligation associated with closing the gold sales contracts in 2009. Q4 adjusted operating cash flow, which excludes the impact of these payments, rose 56% to a record $1.44 billion from $921 million in the prior year period.

The average gold price increased 26% in 2010, while full year adjusted net income rose 81% to $3.28 billion and adjusted operating cash flow increased 65% to $4.78 billion from 2009. Full year reported net income and operating cash flow were $3.27 billion and $4.13 billion, respectively.

"Looking back at 2010, we are pleased with the Company's performance," said Aaron Regent, President and CEO of Barrick Gold. "We met our operating targets with higher production at lower costs than the previous year. This allowed us to fully benefit from the increase in the gold price, which resulted in significant expansion of our margins and record earnings and cash flow. Development of our project pipeline progressed with the successful completion and ramp up of Cortez Hills, and the continued construction of Pueblo Viejo and Pascua-Lama. We were able to replace reserves and grow measured and indicated resources by 24% and inferred resources by 18%. And our focus on value creation opportunities within our existing asset base, has now positioned us to increase production to 9 million ounces within five years."

PRODUCTION AND COSTS

The North America region had a strong quarter, producing 0.70 million ounces at total cash costs of $486 per ounce. The Cortez property produced 0.21 million ounces at total cash costs of $329 per ounce. Due to mine sequencing, production was expected to be lower in Q4 as previously disclosed, but is expected to increase again in the first quarter of this year. Full year production of 1.14 million ounces at Cortez exceeded original guidance of 1.08-1.12 million ounces on higher than anticipated grades and recoveries from the Cortez Hills open pit and underground. The Company expects to receive a new Record of Decision for Cortez Hills imminently, which will allow the operation to revert to its original scope. Production at Cortez is anticipated to increase to 1.30-1.45 million ounces at total cash costs of $235-$265 per ounce in 2011.

The Goldstrike operation performed strongly, producing 0.29 million ounces at total cash costs of $490 per ounce in Q4, primarily due to better than expected grades from the open pit and higher roaster throughput. Full year 2011 production for the North America region is expected to increase to 3.30-3.46 million ounces at total cash costs of $425-$450 per ounce driven largely by higher production from Cortez.

The South American business unit performed as expected, with production of 0.38 million ounces at total cash costs of $297 per ounce in Q4. The Veladero mine produced 0.24 million ounces at total cash costs of $252 per ounce in the fourth quarter. Full year production at Veladero was 1.12 million ounces at total cash costs of $256 per ounce due to access to higher grades and the increased throughput from a crusher expansion completed in Q3 2009. The Lagunas Norte operation contributed 0.11 million ounces at total cash costs of $294 per ounce. Based on previously disclosed changes to the mine plan, production was expected to be lower in the fourth quarter but is anticipated to increase again in the first quarter of this year. In 2011, South America production is expected to be 1.80-1.935 million ounces at total cash costs of $350-$380 per ounce primarily due to lower grades at Veladero as anticipated in the mine plan. 

The Australia Pacific business unit produced 0.49 million ounces at total cash costs of $639 per ounce in Q4. The Porgera mine, the region's largest operation, produced 0.14 million ounces at total cash costs of $578 per ounce. Australia Pacific is expected to produce 1.85-2.00 million ounces at total cash costs of $610-$635 per ounce in 2011. The Company is 92% hedged on all of its Australian operating and capital expenditures in 2011 at an average rate of $0.79, 84% hedged for 2012 at an average rate of $0.75, and has substantial coverage for the following two years at rates at or below $0.75.

Attributable production from African Barrick Gold plc (ABG) in Q4 was 0.13 million ounces at total cash costs of $679 per ounce. Barrick's share of 2011 production is expected to be 0.515-0.560 million ounces at total cash costs of $590-$650 per ounce.

Q4 copper production was 82 million pounds at total cash costs of $1.12 per pound⁶. Utilizing option collar strategies, the Company has put in place floor protection at an average floor price of about $3.00 per pound on approximately 60% of 2011 production and can participate in upside up to an average ceiling price of about $4.85 per pound on approximately 70% of 2011 production⁷.  

PROJECTS UPDATE

At the Pueblo Viejo project in the Dominican Republic, preproduction capital is expected to increase by 10-15% from the previous estimate to $3.3-$3.5 billion (100% basis). The increased capital cost estimate is largely due to higher labor, power supply, freight and steel product related costs as well as general inflation. In December, the Environmental Impact Assessment for the 240 kV power transmission line was approved allowing associated construction activities to commence. Alternative temporary power sources are being secured which will allow project commissioning in the fourth quarter of 2011. First production is expected in the first quarter of 2012. Overall construction is about 50% complete, approximately 75% of the capital has been committed and all four of the autoclaves are on site and have been placed on their footings. About 80% of the planned concrete has been poured, 55% of the steel has been erected and more than 600,000 tons of ore have been stockpiled. Work continues toward achieving key milestones including the connection of power to the site. Barrick's 60% share of annual gold production in the first full five years of operation is expected to average 625,000-675,000 ounces at total cash costs of $275-$300 per ounce⁸.

At the Pascua-Lama project on the border of Chile and Argentina, pre-production capital is expected to increase by 10-20% to $3.3-$3.6 billion. Pressure on capital costs are primarily as a result of a stronger Chilean peso, labor, commodity and other input cost increases in both countries and higher inflation particularly in Argentina. First production is expected in the first half of 2013. Approximately 40% of the capital has been committed, detailed engineering and procurement are more than 90% complete and about 60% of the earthworks necessary for the process plant and mining support facilities have been moved. Construction of the power transmission line has commenced and the new access road is almost 75% complete. Development of the tunnel, which connects the mine in Chile and the process plant in Argentina, is progressing on both sides. Occupancy of the construction camps in Chile and Argentina continues to ramp up with more than 2,000 housed on site. Average annual gold production from Pascua-Lama is expected to be 750,000–800,000 ounces in the first full five years of operation at total cash costs of $20-$50 per ounce⁹ based on a silver price of $16 per ounce. For every $1 per ounce increase in the silver price, total cash costs are expected to decrease by about $35 per ounce over this period.

At the Cerro Casale project in Chile, the review of additional permitting requirements before considering a construction decision is progressing alongside discussions with the government and meetings with local communities and indigenous groups. Given the changed operating environment in Chile and the Company's experience at Pascua-Lama, a review of the capital cost of the project has been initiated. Early indications suggest that the capital cost may be higher by about 20-25% from the previous estimate of $4.2 billion (100% basis), which is based on the feasibility study completed in 2009 and reflects the impact of a stronger Chilean peso, higher labor, commodity and other input costs. An update will be provided by the end of the second quarter. Barrick's 75% share of average annual production is anticipated to be about 750,000-825,000 ounces of gold and 170-190 million pounds of copper in the first full five years of operation at total cash costs of about $240-$260 per ounce¹⁰, also based on the feasibility study completed in 2009. A $0.25 per pound change in the copper price would result in an approximate $50 per ounce impact on the expected total cash costs per ounce over the first full five years of operation. 

RESERVES AND RESOURCES

Barrick replaced proven and probable gold reserves to an industry leading 139.8 million ounces at the end of 2010, based on a $1,000 per ounce gold price. Measured and indicated gold resources increased by 24% or 14.5 million ounces to 76.3 million ounces and inferred gold resources grew by 18% or 5.6 million ounces to 37.2 million ounces, based on a $1,200 per ounce gold price. The Company replaced reserves and grew resources despite the initial public offering of ABG in early 2010, which reduced Barrick's interest in ABG to about 74%. Measured, indicated and inferred resources increased with exploration success and the potential to develop an open pit mine at Turquoise Ridge, exploration success at Cortez and from the additional 25% ownership in Cerro Casale.

As a result of exploration success in 2010, the 2011 exploration¹¹ budget has increased to $320-$340 million, of which approximately one-third will be capitalized. The budget is weighted towards near-term resource additions and conversion at existing mines while still providing support for earlier stage exploration in operating districts and other emerging areas. North America is expected to be allocated about 43% of the total budget, the majority of which is targeted for Nevada. About 24% is expected to be spent in the Australia Pacific region. Approximately 15% is to be targeted for the South America region with the remainder divided between Africa and other emerging areas.

FINANCIAL POSITION

At December 31, 2010, Barrick remained in a strong financial position with the gold industry's only 'A' credit rating, a quarter-end cash balance of $4.0 billion and low net debt of $2.5 billion. Full year 2010 operating cash flow was $4.1 billion, which reflects payments to eliminate the remaining settlement obligation associated with closing the gold sales contracts in 2009. Adjusted cash flow of $4.8 billion excludes the impact of these payments. The Company generated free cash flow of about $1.5 billion¹² in 2010, compared to $541 million in 2009, despite the substantial capital investment in the Pueblo Viejo and Pascua-Lama projects. Barrick's financial strength positions the Company well to continue investing in its project pipeline and pursue other value-enhancing opportunities.

CORPORATE SOCIAL RESPONSIBILITY

In Q4, Barrick announced that it was the first Canadian mining company to join the Voluntary Principles on Security and Human Rights, a set of guidelines by which companies in the extractive sector can maintain the safety and security of their operations while ensuring respect for human rights and fundamental freedoms. The Company is advancing the implementation of the Voluntary Principles, engaging in the tripartite process with NGOs, extractive companies and government members. This is particularly important in the complex environments in which Barrick operates, where it is further strengthening its policies and compliance with these human rights principles. The Company also announced two new Corporate Social Responsibility (CSR) initiatives to further strengthen the Company's CSR performance. Barrick will appoint an independent Director to its Board of Directors to support its commitment to CSR and the search is underway to fill this position in 2011. The Company will also establish an external CSR Advisory Board that will provide advice and guidance on challenging social and environmental issues and encourage further innovation and leadership in CSR.

In November, the Company was ranked among the top 100 companies in the world for its sustainability performance by the NASDAQ OMX CRD Global Sustainability Index and is the only Canadian mining company to be ranked as such by NASDAQ.

OUTLOOK AND GUIDANCE

The Company expects 2011 gold production to be in a comparable range to 2010 at 7.6-8.0 million ounces at total cash costs of $450-$480 per ounce or net cash costs of $340-$380 per ounce. Higher expected gold cash costs for 2011 primarily reflect lower grades and higher labor costs in South America and Australia. Production is anticipated to increase to 9 million ounces within the next five years and total cash costs are expected to benefit from low cost projects, primarily Pueblo Viejo and Pascua-Lama, as these mines come on stream.

Copper production for 2011 is anticipated to be about 300 million pounds at total cash costs of $1.35-$1.45 per pound. Total cash costs are expected to be higher in 2011 compared to 2010, primarily due to increased market prices for sulfuric acid and the processing of lower grades. The Company has secured contracts for essentially all of its sulfuric acid supply required in 2011 at prices well below the average current market price. 

Capital project expenditures for 2011 are expected to be in the range of $2.1-$2.3 billion¹³ primarily related to construction activities at Pueblo Viejo and Pascua-Lama. Open pit and underground development, which includes capitalized waste stripping, is anticipated to be $750-$850 million as Goldstrike and Cortez enter a period of high waste stripping as anticipated by their mine plans. The high waste stripping phases at both mines are expected to be substantially complete by the end of 2011. Mine site expansion capital is expected to be $450-$500 million and includes expenditures on development projects at Lagunas Norte, Cortez, Turquoise Ridge, Goldstrike, Bald Mountain, Golden Sunlight and North Mara. Mine site sustaining capital expenditures are expected to be $0.90-$1.00 billion. Based on the current portfolio of development projects and mine plans, total capital expenditures are anticipated to decrease in 2012.

Barrick's vision is to be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner. Barrick's shares are traded on the Toronto and New York stock exchanges.

Outlook Assumptions and Economic Sensitivity Analysis
		2011 Guidance Assumption	Hypothetical Change	Impact on Total Cash Costs	Impact on EBITDA (millions)
Gold revenue		$1,300/oz	$50/oz	n/a	$380 - $400
Copper revenue		$3.75/lb	$0.25/lb	n/a	$75
Gold total cash costs
	Gold price effect on royalties and production taxes	$1,300/oz	$50/oz	$1.25/oz	$9
	WTI crude oil price1	$85/bbl	$10/bbl	$0.20/oz	$2
	Australian dollar exchange rate1	0.95 : 1	10%	-	-
Copper total cash costs
	WTI crude oil price1	$85/bbl	$10/bbl	$0.01/lb	$3
	Chilean peso exchange rate1	500 : 1	10%	$0.01/lb	$5
1 Due to hedging activities the Company is largely protected against changes in these factors.

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¹ Adjusted net income, adjusted operating cash flow, total cash costs per ounce, net cash costs per ounce, cash margins per ounce, net cash margins per ounce, return on equity, and net debt are non-GAAP financial measures. See pages 56-62 of Barrick's 2010 Year-End Report.

² Based on an expected realized copper price of $3.75 per pound.

³ 1.4 million ounces of production is based on the estimated cumulative average annual production in the first full 5 years once both are at full capacity.

⁴ 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 the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, Cerro Casale is classified as mineralized material. For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 140-145 of Barrick's 2010 Year-End Report.

⁵ Realized price per ounce is a non-GAAP financial measure. See pages 56-62 of Barrick's 2010 Year-End Report.

⁶ Total cash costs per pound is a non-GAAP financial measure. See pages 56-62 of Barrick's 2010 Year-End Report.

⁷ The realized price is expected to be negatively impacted by about $0.12 per pound in 2011 as a result of the net premium paid on option hedging strategies.

⁸ Based on gold price and oil price assumptions of $1,100 per ounce and $85 per barrel, respectively.

⁹ Based on silver price, gold price and oil price assumptions of $16 per ounce, $1,100 per ounce, and $85 per barrel, respectively and assuming a Chilean peso f/x rate of 500:1.

¹⁰ Based on a gold price, copper price and oil price assumptions of $1,100 per ounce, $2.75 per pound and $85 per barrel, respectively and a Chilean peso f/x rate of 500:1.

¹¹ Barrick's exploration programs are designed and conducted under the supervision of Robert Krcmarov, Senior Vice President, Global Exploration of Barrick. For information on the geology, exploration activities generally, and drilling and analysis procedures on Barrick's material properties, see Barrick's most recent Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission.

¹² Free cash flow is a non-GAAP financial measure. See pages 56-62 of Barrick's 2010 Year-End Report.

¹³ Represents Barrick's share of expenditures and includes capitalized interest of about $350 million.

Key Statistics
Barrick Gold Corporation			Three months ended					Twelve months ended
(in United States dollars)			December 31,					December 31,
(Unaudited)			2010		2009			2010		2009
Operating Results
Gold production (thousands of ounces)1			1,700		1,871			7,765		7,397
Gold sold (thousands of ounces)			1,825		1,797			7,734		7,279
Per ounce data
	Average spot gold price	$	1,367	$	1,100		$	1,225	$	972
	Average realized gold price2		1,368		1,119			1,228		985
	Net cash costs5		326		310			341		360
	Total cash costs3		486		465			457		464
	Amortization and other4		132		129			133		124
	Total production costs		618		594			590		588
	Copper credits		160		155			116		104
Copper production (millions of pounds)			82		98			368		393
Copper sold (millions of pounds)			103		118			391		380
Per pound data
	Average spot copper price	$	3.92	$	3.01		$	3.42	$	2.34
	Average realized copper price2		3.99		3.44			3.41		3.16
	Total cash costs3		1.12		1.08			1.11		1.17
	Amortization and other4		0.23		0.19			0.22		0.20
	Total production costs		1.35		1.27			1.33		1.37
Financial Results (millions)
Sales		$	2,946	$	2,358		$	10,924	$	8,136
Net income (loss)			896		215			3,274		(4,274	)
Adjusted net income6			947		604			3,279		1,810
Operating cash flow			781		(4,300	)		4,127		(2,322	)
Adjusted operating cash flow7			1,437		921			4,783		2,899
Free cash flow8			292		173			1,460		541
Per Share Data (dollars)
	Net income (loss) (basic)		0.90		0.22			3.32		(4.73	)
	Adjusted net income (basic)6		0.95		0.61			3.32		2.00
	Net income (loss) (diluted)		0.90		0.21			3.28		(4.73	)
Weighted average basic common shares (millions)			995		984			987		903
Weighted average diluted common shares (millions)9			1,000		996			997		903
								As at		As at
							December 31,		December 31,
								2010		2009
Financial Position (millions)
Cash and equivalents							$	3,968	$ 2,564
Non-cash working capital								1,806		1,473
Adjusted debt10								6,392		6,919
Net debt10								2,542		4,355
Shareholders' equity								19,065	15,063

1  Production includes our equity share of gold production at Highland Gold.

2  Realized price is a non-GAAP financial performance measure with no standard meaning under US GAAP.  See page 60 of the Company's MD&A.

3  Total cash costs is a non-GAAP financial performance measure with no standard meaning under US GAAP.  See page 58 of the Company's MD&A.

4  Represents equity amortization expense, unrealized losses on non-hedge currency and commodity contracts and inventory purchase accounting adjustments at the Company's producing mines, divided by equity ounces of gold sold or pounds of copper sold.

5  Net cash costs is a non-GAAP financial performance measure with no standard meaning under US GAAP.  See page 58 of the Company's MD&A.

6  Adjusted net income is a non-GAAP financial performance measure with no standard meaning under US GAAP.  See page 56 of the Company's MD&A.

7  Adjusted operating cash flow is a non-GAAP financial performance measure with no standard meaning under US GAAP.  See page 57 of the Company's MD&A.

8  Free cash flow is a non-GAAP financial performance measure with no standard meaning under US GAAP. See page 57 of the Company's MD&A.

9  Fully diluted, includes dilutive effect of stock options and convertible debt.

10  Adjusted debt and net debt are non-GAAP financial performance measures with no standard meaning under US GAAP.  See page 62 of the Company's MD&A.

Production and Cost Summary
	Gold Production (attributable ounces) (000's)				Total Cash Costs ($/oz)
	Three months ended		Year ended			Three months ended				Year ended
	December 31,		December 31,			December 31,				December 31,
(Unaudited)	2010	2009	2010	2009		2010		2009		2010		2009
North America 1	697	597	3,110	2,810	$	486	$	523	$	489	$        504
South America	377	542	2,120	1,889		297		253		243	265
Australia Pacific	485	511	1,939	1,950		639		580		613	581
African Barrick Gold4	133	213	564	716		679		617		646	545
Other	8	8	32	32		494		494		494	494
Total	1,700	1,871	7,765	7,397	$	486	$	465	$	457	$        464
	Copper Production (attributable pounds) (Millions)				Total Cash Costs ($/lb)
	Three months ended		Year ended			Three months ended				Year ended
	December 31,		December 31,			December 31,				December 31,
(Unaudited)	2010	2009	2010	2009		2010		2009		2010		2009
South America	82	75	318	302	$	1.11	$	1.03	$	1.09	$	1.17
Australia Pacific	-	23	50	91		1.18		1.25		1.18		1.15
Total	82	98	368	393	$	1.12	$	1.08	$	1.11	$	1.17

	Total Gold Production Costs ($/oz)
	Three months ended						Year ended
	December 31,						December 31,
(Unaudited)		2010			2009			2010		2009
Direct mining costs at market foreign exchange rates	$	497		$	456		$	450		$	430
(Gains) losses realized on currency hedge and commodity hedge/economic hedge contracts		(35	)		(14	)		(20	)		11
Adjustments to direct mining costs3		(13	)		(3	)		(6	)		(2	)
By-product credits		(18	)		(15	)		(15	)		(11	)
Copper credits		(160	)		(155	)		(116	)		(104	)
Cash operating costs, net basis		271			269			293			324
Royalties		43			36			36			30
Production taxes		12			5			12			6
Net cash costs2		326			310			341			360
Copper credits		160			155			116			104
Total cash costs2		486			465			457			464
Amortization		119			126			127			122
Adjustments to direct mining costs3		13			3			6			2
Total production costs	$	618		$	594		$	590		$	588
	Total Copper Production Costs ($/lb)
	Three months ended							Year ended
	December 31,							December 31,
(Unaudited)		2010			2009			2010			2009
Cash operating costs	$	1.10			$1.07		$	1.09		$	1.16
Royalties		0.02			0.01			0.02			0.01
Total cash costs2		1.12			1.08			1.11			1.17
Amortization		0.23			0.19			0.22			0.20
Total production costs	$	1.35		$	1.27		$	1.33		$	1.37

1Production includes an additional 50% interest in Hemlo from January 1, 2009 onwards and Barrick's share of total cash costs increased to 100% effective May 1, 2009.

2Total cash costs and net cash costs are non-GAAP financial performance measures with no standard meaning under US GAAP. See page 58 of the Company's MD&A.

3Represents unrealized losses on non-hedge currency and commodity contracts and the impact of Barrick Energy.

4Figures relating to African Barrick Gold are stated at 100% up to March 31, 2010 and 73.9% thereafter.

Consolidated Statements of Income
Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars, except per share data)
			2010			2009			2008
Sales (notes 4 and 5)		$	10,924		$	8,136		$	7,613
Costs and expenses
Cost of sales (notes 4 and 6)1			4,201			3,807			3,706
Amortization and accretion (notes 4 and 15B)			1,196			1,073			957
Corporate administration			154			171			155
Exploration (notes 4 and 7)			180			141			198
Project development expense (notes 4 and 7)			153			85			242
Elimination of gold sales contracts			-			5,933			-
Other expense (note 8A)			463			343			302
Impairment charges (note 8B)			7			277			598
			6,354			11,830			6,158
Interest income			14			10			39
Interest expense (note 20B)			(121	)		(57	)		(21	)
Other income (note 8C)			124			112			291
Write-down of investments (note 8B)			-			(1	)		(205	)
			17			64			104
Income (loss) from continuing operations before income taxes and other items			4,587			(3,630	)		1,559
Income tax expense (note 9)			(1,370	)		(648	)		(594	)
Loss from equity investees (note 12)			(41	)		(87	)		(64	)
Income (loss) from continuing operations before non-controlling interests			3,176			(4,365	)		901
Income (loss) from discontinued operations (note 3I)			121			97			(104	)
Income (loss) before non-controlling interests			3,297			(4,268	)		797
Non-controlling interests (note 27)			(23	)		(6	)		(12	)
Net income (loss)		$	3,274		$	(4,274	)	$	785
Earnings (loss) per share data (note 10)
Income (loss) from continuing operations
	Basic	$	3.19		$	(4.84	)	$	1.02
	Diluted	$	3.16		$	(4.84	)	$	1.01
Income (loss) from discontinued operations
	Basic	$	0.13		$	0.11		$	(0.12	)
	Diluted	$	0.12		$	0.11		$	(0.12	)
Net income (loss)
	Basic	$	3.32		$	(4.73	)	$	0.90
	Diluted	$	3.28		$	(4.73	)	$	0.89

1 Exclusive of amortization.

The notes to these unaudited consolidated financial statements, which are contained in the Fourth quarter and Year-end report, available on our website, are an integral part of these consolidated financial statements.

Consolidated Statements of Cash Flow
Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars)
			2010			2009			2008
OPERATING ACTIVITIES
Net income (loss)		$	3,274		$	(4,274	)	$	785
Amortization and accretion (notes 4 and 15B)			1,196			1,073			957
Impairment charges and write-down of investments (note 8B)			7			278			803
Income tax expense (note 9)			1,370			648			594
Income taxes paid			(647	)		(376	)		(575	)
Net proceeds taxes paid			(85	)		(66	)		-
Increase in inventory			(403	)		(372	)		(370	)
Elimination of gold sales contracts			-			5,933			-
Payment on settlement for gold sales contracts			(656	)		(5,221	)		-
Gain on sale/acquisition of long-lived assets (note 8C)			(50	)		(85	)		(187	)
(Income) loss from discontinued operations (note 3I)			(121	)		(97	)		104
Operating cash flows of discontinued operations (note 3I)			(8	)		7			26
Other operating activities (note 11A)			250			230			117
Net cash provided by (used in) operating activities			4,127			(2,322	)		2,254
INVESTING ACTIVITIES
Property, plant and equipment
	Capital expenditures (note 4)		(3,323	)		(2,351	)	(1,749		)
	Sales proceeds		61			10			185
Acquisitions (note 3)			(813	)		(101	)	(2,174		)
Investments (note 12)
	Purchases		(61	)		(3	)		(18	)
	Sales		15			7			76
Decrease in restricted cash			-			113			18
Investing cash flows of discontinued operations (note 3I)			-			(3	)		(27	)
Other investing activities (note 11B)			(51	)		(87	)		(231	)
Net cash used in investing activities			(4,172	)		(2,415	)	(3,920		)
FINANCING ACTIVITIES
Capital stock
	Proceeds on exercise of stock options		127			65			74
	Proceeds on common share offering (note 25)		-			3,885			-
Proceeds from public issuance of common shares by a subsidiary (note 3E)			884			-			-
Long-term debt (note 20B)
	Proceeds		782			2,154			2,717
	Repayments		(149	)		(397	)	(1,603		)
Dividends (note 25)			(436	)		(369	)		(349	)
Funding from non-controlling interests			114			304			88
Deposit on silver sale agreement			137			213			-
Financing cash flows of discontinued operations (note 3I)			-			-			-
Other financing activities (note 11C)			(25	)		(26	)		(34	)
Net cash provided by financing activities			1,434			5,829			893
Effect of exchange rate changes on cash and equivalents			15			35			3
Net increase (decrease) in cash and equivalents			1,404			1,127			(770	)
Cash and equivalents at beginning of period (note 20A)			2,564			1,437			2,207
Cash and equivalents at end of period (note 20A)		$	3,968		$	2,564		$	1,437

The notes to these unaudited consolidated financial statements, which are contained in the Fourth quarter and Year-end report, available on our website, are an integral part of these consolidated financial statements.

 

Consolidated Balance Sheets
Barrick Gold Corporation
At December 31,
(in millions of United States dollars)
			2010		2009
ASSETS
Current assets
	Cash and equivalents (note 20A)	$	3,968	$	2,564
	Accounts receivable (note 14)		346		251
	Inventories (note 13)		1,852		1,540
	Other current assets (note 14)		947		524
	Assets of discontinued operations (note 3I)		-		59
			7,113		4,938
Non-current assets
	Equity in investees (note 12A)		291		1,136
	Other investments (note 12B)		203		92
	Property, plant and equipment (note 15)		17,751		13,125
	Goodwill (note 17)		5,287		5,197
	Intangible assets (note 16)		140		66
	Deferred income tax assets (note 24)		467		949
	Other assets (note 18)		2,070		1,531
	Assets of discontinued operations (note 3I)		-		41
Total assets		$	33,322	$	27,075
LIABILITIES AND EQUITY
Current liabilities
	Accounts payable		1,511		1,221
	Current portion of long-term debt (note 20B)		14		54
	Other current liabilities (note 19)		964		475
	Liabilities of discontinued operations (note 3I)		-		23
			2,489		1,773
Non-current liabilities
	Long-term debt (note 20B)		6,678		6,281
	Asset retirement obligations (note 22)		1,439		1,122
	Deferred income tax liabilities (note 24)		1,114		1,184
	Other liabilities (note 23)		868		1,145
	Liabilities of discontinued operations (note 3I)		-		23
Total liabilities			12,588		11,528
Equity
	Capital stock (note 25)		17,790		17,390
	Additional paid-in capital		288		-
	Retained earnings (deficit)		456		(2,382)
	Accumulated other comprehensive income (note 26)		531		55
Total shareholders' equity			19,065		15,063
	Non-controlling interests (note 27)		1,669		484
Total equity			20,734		15,547
Contingencies and commitments (notes 15 and 30)
Total liabilities and equity		$	33,322	$	27,075

The notes to these unaudited consolidated financial statements, which are contained in the Fourth quarter and Year-end report, available on our website, are an integral part of these consolidated financial statements.

Consolidated Statements of Equity
Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars)
		2010		2009			2008
Common shares (number in thousands)
At January 1		984,328		872,739			869,887
	Issued on public equity offering (note 25)	-		108,973			-
	Issued on exercise of stock options	4,760		2,349			2,383
	Issued on conversion of debentures (note 20B)	9,412		-			-
	Issued on redemption of exchangeable shares (note 25B)	-		267			469
At December 31		998,500		984,328			872,739
Common shares
At January 1		$	17,390	$	13,372	$	13,273
	Issued on public equity offering (note 25)	-		3,926			-
	Issued on conversion of debentures (note 20B)	268		-			-
	Issued on exercise of stock options	127		65			74
	Recognition of stock option expense	14		20			25
	Other adjustments	(9)		7			-
At December 31		17,790		17,390			13,372
Additional paid-in capital
At January 1		-		-			-
	Recognized on initial public offering of African Barrick Gold (note 3E)	288		-			-
At December 31		288		-			-
Retained earnings (deficit)
At January 1		(2,382)		2,261			1,832
	Net income (loss)	3,274		(4,274)			785
	Dividends (note 25)	(436)		(369)			(349)
	Repurchase of preferred shares of a subsidiary	-		-			(7)
At December 31		456		(2,382)			2,261
Accumulated other comprehensive income (loss) (note 26)		531		55			(356)
Total shareholders' equity		19,065		15,063			15,277
Non-controlling interests (note 27)
At January 1		484		182			82
	Net income attributable to non-controlling interests	23		6			12
	Funding from non-controlling interests	114		299			90
	Other increase (decrease) in non-controlling interests	1,048		(3)			(2)
At December 31		1,669		484			182
Total equity at December 31		$	20,734	$	15,547	$	15,459

Consolidated Statements of Comprehensive Income
Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars)
		2010		2009			2008
Net income (loss)	$	3,274	$	(4,274	)	$	785
Other comprehensive income (loss), net of tax (note 26)		476		411			(507	)
Comprehensive income (loss)	$	3,750	$	(3,863	)	$	278

The notes to these unaudited consolidated financial statements, which are contained in the Fourth quarter and Year-end report, available on our website, are an integral part of these consolidated financial statements.

CORPORATE OFFICE	TRANSFER AGENTS AND REGISTRARS
Barrick Gold Corporation	CIBC Mellon Trust Company
Brookfield Place, TD Canada Trust Tower	P.O. Box 7010, Adelaide Street Postal Station
Suite 3700	Toronto, Canada M5C 2W9
161 Bay Street, P.O. Box 212	Tel: (416) 643-5500
Toronto, Canada M5J 2S1	Toll-free throughout North America: 1-800-387-0825
Tel: (416) 861-9911 Fax: (416) 861-0727	Fax: (416) 643-5501
Toll-free throughout North America: 1-800-720-7415	Email: inquiries@cibcmellon.com
Email: investor@barrick.com	Website: www.cibcmellon.com
Website: www.barrick.com
SHARES LISTED	BNY MELLON SHAREOWNER SERVICES
ABX – The New York Stock Exchange	480 Washington Blvd. – 27th Floor
The Toronto Stock Exchange	Jersey City, NJ 07310
	Tel: 1-800-589-9836 Fax: (201) 680-4665
	Email: shrrelations@mellon.com
	Website: www.melloninvestor.com

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this Fourth Quarter and Year-End Report 2010, including any information as to our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "will", "anticipate", "contemplate", "target", "plan", "continue", "budget", "may", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; changes in the worldwide price of gold, copper or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets; changes in U.S. dollar interest rates; risks arising from holding derivative instruments; ability to successfully complete announced transactions and integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; changes in costs and estimates associated with our projects; adverse changes in our credit rating, level of indebtedness and liquidity, contests over title to properties, particularly title to undeveloped properties; the risks involved in the exploration, development and mining business. Certain of these factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.