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--Analyst Actions: Barrick Gold's Denver Gold Forum Update Analyzed at Credit Suisse

Barrick Gold Corp. (ABX.TO) presented at the Denver Gold Forum: On Sept. 19, 2011, Aaron Regent, CEO of ABX provided an update on the company's activities.

Positive outlook for gold: "ABX noted that the gold price is well supported with structural changes in gold buying (China investment up 2000% with deregulation and India up 159%, as well as Central banks) and a lack of supply response (fewer new discoveries, project delays, more challenging new projects). Supply constraints include lack of technical supply, increased environmental and regulatory challenges, water shortages, cost inflation."

ABX's strategy - Focus remains gold, complemented by copper. "ABX indicated it would increase its cashflows by maximizing production from existing operations and land packages, developing its project pipeline and securing new deposits through exploration and acquisitions. ABX increased its exploration budget to $380M in 2011 from $210M in 2010 with 38% to be spent in each in North America and Aus-Pac and the remaining 24% to be split between Africa and South America."

Cornerstone ops breathe new life: "ABX announced two new discoveries in Nevada, Gold Rush and Red Hill, both south of Cortez Hills. Red Hill resources currently stand at 3.5Mozs which ABX expects to double. Gold Rush is not yet in resource stage but could ultimately be of similar size as Red Hill. Recent drilling indicated several intercepts over 50oz-ft. The company is holding a mine tour to Cortez Hills on Sept. 22 where we expect further detail on both discoveries."

Pueblo Viejo project pipeline update: "Pueblo Viejo is expected to start up in mid 2012. The tailings dam construction has resumed. Pre-production capital estimate stands at $3.7B (100%). Construction is over 75% complete and 77% of capital has been committed. The mining fleet is operational and a long term power supply agreement is in the works."

Growing dividend and strengthening balance sheet: "ABX indicated that it would continue to grow its dividend and strengthen its balance sheet (pay down debt or buy back shares with excess cash)."

Operations: "Management indicated they have continued to realize higher than anticipated grades from both Cortez and Goldstrike throughout the quarter. Buzwagi has also rebounded on the production front after a softer Q2 due to lower grade 'transition' ore; and is now back to processing primary sulphide ore at higher grades."

Outlook on gold: "ABX reiterated its positive view on the price of gold due to valuation concerns regarding the USD, continued intervention by governments around the world, declining mine supply, and concerns regarding inflation."

Valuation: "Our Target price of US$58 is based on a Target P/NAV multiple of 1.2 times our DCF of $49.96/sh with net cash of $(2.33)/sh added at par."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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