B News & Events

In a letter to shareholders, Chairman John Thornton said, "What will our next chapter look like? Some things will change, while the essentials will stay the same. The primary change will be to our structure. For many years, we have viewed our shares as undervalued... We are in a unique position to take bold and creative steps to unlock even more value and optimize the whole. The first such step is to pursue an IPO of a company that will hold Barrick's premier North American gold assets: our joint venture interests in Nevada Gold Mines and Pueblo Viejo, and our wholly-owned Fourmile discovery. We will retain a significant controlling majority interest in North American Barrick and continue to benefit financially from it. We expect the IPO to be completed by the end of 2026. In our view North American Barrick will be the most attractive pure gold company in the world, located in the most attractive jurisdiction, with the strongest proven growth pipeline. We would expect to see that value reflected over time in its share price and in the share price of the Barrick parent company. Of our remaining portfolio, we will reduce our exposure to today's higher-risk jurisdictions, enhance the value of our remaining assets through disciplined investment and strategic initiatives, and strengthen the whole with targeted acquisitions. The resulting structure will attract new shareholders and give our existing owners more tailored exposure to different jurisdictions, metals, and portfolio growth opportunities."

Barrick Mining announced the decision by the Ontario Court of Appeal dismissing an appeal by certain Tanzanian residents alleging human rights abuses by members of the Tanzanian Police Force in the vicinity of the company's North Mara gold mine. This decision upheld an earlier ruling of the Superior Court of Ontario which found that Ontario is not the appropriate forum to consider these claims and that they must be adjudicated in Tanzania. Evidence filed during this case established that the Tanzanian Police Force acts independently of Barrick.

Barrick Mining provided an update on the status of the Reko Diq project. On February 5, the company announced that it was reviewing all aspects of the project in light of the escalation of security risks and increased security incidents. Following the preliminary findings of the review and the further escalation of security issues in Pakistan and the region, the company considers it necessary to slow the development activity and continue the project review until mid-2027. The continued review will allow the company to assess in a comprehensive manner the evolving security situation, capital requirements, project financing, project scope and timeline. While development activity will be slowed, the project will remain under active management with a reduced capital spend. Development of Phase 1 of the Reko Diq project was approved on this basis. It is anticipated that there could be significant increases to the previously disclosed total estimated capital budget and timeline for the project. The previousl total estimated capital cost of Phase 1 was $5.6B-$6.0B on a 100% basis, and of Phase 2 was $3.3B-$3.6B on a 100% basis, with first production targeted by the end of 2028. Barrick will continue to monitor the security landscape closely in consultation with its joint venture partners and will provide a further update following conclusion of its review.