Barrick Mining (ABX) Status Update summary

Strategic Growth and Project Overview

• Lumwana Super Pit expansion aims to double mine life, increase output by 70%, and position the site as a Tier One/top 25 global copper asset, leveraging existing infrastructure and a 32-year mine life in Zambia's Copperbelt.

• Expansion will raise annual copper production to 240,000 tons from 2028, with a cost profile resilient to market volatility and a life-of-mine output of 7.7Mt.

• Project leverages low technical risk, a supportive regulatory environment, and robust copper market fundamentals, with global supply projected to lag demand.

• Feasibility study is well advanced, with major equipment orders placed, construction preparation underway, and commissioning of the new plant expected in H2 2027.

• Environmental and Social Impact Assessment has been submitted, with approval expected by year-end.

Financial and Operational Highlights

• Estimated project IRR is 20% incremental and over 50% total, with a two-year payback at $4.13/lb copper price.

• C1 operating costs projected at $1.85/lb, with all-in costs (including capital) at $2.74/lb and cost of sales at $2.36/lb.

• Capital estimate refined to $2 billion, with exceptionally low capital intensity of ~$550/t and high operating margins.

• Projected annual operating and free cash flow improvements of up to 85% and 60%, respectively, based on long-term copper price consensus.

• Mining costs expected to average $2.30/ton, processing at $4.30/ton, and G&A at $1.20/ton.

Technical and Infrastructure Developments

• Plant throughput to rise from 27 to 52 million tons per annum, with mining ramping to 280 million tons by 2030.

• Strip ratio averages 4.7 over life of mine, with grade at 0.53% copper (diluted minable grade).

• In-pit and pit rim crushing systems to reduce haulage costs and improve efficiency.

• Power supply secured via agreement with ZESCO; grid stability to be enhanced with STATCOMs and transmission upgrades.

• Project is water positive, with new storage facilities planned to manage excess water.