Ladies and gentlemen, thank you for standing by, and welcome to the Barrick Gold Q1 2011 Results Conference Call. [Operator Instructions] I would like to remind you, today's call is being recorded, Wednesday, April 27, 2011. And now, I have the pleasure to turn the call over to Mr. Deni Nicoski, Vice President, Investor Relations. Please go ahead, sir.

Thank you, operator, and good afternoon, everyone. Before we begin, I will bring to your attention the fact that we will be making forward-looking statements during the course of this presentation. For a complete discussion of the risks, uncertainties and factors which may lead to our actual financial results and performance being different from the estimates contained in our forward-looking statement, please refer to our year-end report or our most recent AIF filing. With that, I will hand it over to Aaron Regent, President and CEO of Barrick.

Thanks, Deni, and good afternoon. And thank you for joining our call. I'm joined here today by Jamie Sokalsky, Peter Kinver and Kelvin Dushnisky, as well as other members of our senior management team who will be available to answer questions at the end of the call. What I thought we would do today is cover the highlights of our first quarter results, provide an update on our projects and then of course talk at length about our proposal to acquire Equinox Minerals. [ph] I'll turn the call over to Jamie who can take us through the financials, as well as provide an outlook on the gold market. After which, we'll be happy to take your questions. First, looking at the quarter, we had a strong quarter. Net earnings were $1 billion or $1 per share. Adjusted net earnings were up 32% to $1 billion or $1.01 per share. That translates into annualized return on equity of around 20%. Our operating cash flow is up 27% to $1.44 billion. Our cash margins were up 32% to $952 per ounce, and our net cash margins were up 32% to $1,081 per ounce. We produced 1.96 million ounces in the quarter at a total cash cost of $437 per ounce. And net cash costs were $308 per ounce. Our North American region performed ahead of plan, producing around 862,000 ounces at a cost of $396, mainly due to higher production from Cortez and Goldstrike. The Cortez mine has exceeded plan with production of 366,000 ounces at a cost of $220 per ounce on higher-than-budgeted grades. Both the Goldstrike operation performed strongly, contributing 286,000 ounces at a cost of $461 and also on better-than-expected grades from the open pit and the underground. Our South American region also came in ahead of plan, contributing…

Thanks, Aaron. As Aaron mentioned, we have had a great start to the year. The first quarter average realized gold price was a new record at $1,389 per ounce, up from the $1,114 per ounce in the first quarter of 2010. On a total cash cost and net cash cost basis, our cash margins increased 32% to $952 per ounce and $1,081 per ounce, respectively, versus gold's 25% rise. And copper margins also increased 33% from $2.25 to $3 per pound. And that's a result of not only the gold price increase but our ability to keep our cash cost low. In fact, our first quarter cash cost at $437 per ounce were below our full-year guidance. And as you can see, we are still maintaining our full-year guidance but we're very pleased with the overall cost performance of the company in the quarter. And as you know, we're currently trading at a new record price today, which is more than $130 per ounce, above our realized price in the first quarter. If we look at that difference on 8 million ounces, that's another $1 billion in revenues on a pro forma basis. So those expanding margins are continuing to translate into very strong earnings and cash flow for the company. Adjusted net earnings of $1 billion in quarter 1 were 32% higher than the prior year, while adjusted operating cash flow rose 27% to $1.44 billion. In the quarter, we also generated free cash flow of $364 million, even after investing in our development projects. Our margins have expanded consistently over the last number of years as a result of the rise in the gold price and a good control of our cash costs as this slide shows. For 2011, assuming our net cash cost guidance of $340 to…

Okay. Thanks, Jamie. In summary, we have made good progress against our strategic objectives and continue to be well-positioned to be one of the major beneficiaries of a continued rise in the gold price with our large production base and stable costs. This has been reflected in our expanding margins, record financial results and high returns in our equity. We are pleased with the progress we made in the first quarter. We reported strong results, put us on track to meet our full-year guidance. Our production is underpinned by high quality asset base and a track record of replacing and growing our resources. Our focus on maximizing the value of our assets continue to surface new opportunities to deploy cap of high rates return. With a deep pipeline of world-class projects, which we are continuing to advance, this pipeline is complemented by the acquisition of Equinox, which would add another world-class asset to our portfolio. So in conclusion, we feel the Barrick story is a compelling one and an attractive investment for our shareholders. And so with that, we'd be happy to take your questions. Operator?

[Operator Instructions] And our first question comes from the line of Jorge Beristain with Deutsche Bank.

Congratulations to the team on the good results. My question, I have 2 questions actually. One is, given the stock reaction that Barrick has seen since the announcement of the Equinox deal, what is it in your opinion besides the obvious potential from diversified slightly out of gold that the market is not getting in your opinion about the Equinox deal?

It's a great question. I think there are probably 2 main themes that have come back. One is what are the implications to our strategy and then the second is, touches on valuation. And I think with respect to our strategy, the question has been asked, is this the first of many? And if so, what is the potential impact on our multiples? And then with respect to valuation, there's different perspectives on it. And I would say this is not unanimous as many who are fine with the valuation, but there are those that suggest that, wonder whether the valuation is appropriate. So let me talk first about the valuation issue. As I talked about in my remarks, clearly what's underpinning our financial analysis is a bullish outlook on the copper market. And as I said, it's really underpinned by what we see as a challenge for the industry to provide a supply response to increasing demand. And we see it across the board. There is just resource scarcity. There's very little new discoveries. Even if you discover something, it takes time to put it into production. And this is I guess an area where we have particularly good experience given the fact we have a deep pipeline which we're currently advancing. And so this is a factor at play. So even if the industry wanted to respond, it's very difficult to bring on new supply rapidly. And so we think that copper prices are going to be well supported for the foreseeable future and frankly, the markets think that, too. As I said, the forward curve averages over $4 a pound for the next 5 years. So we could -- if we chose to, we could go lock in the copper price the next 4 years at about…

The next question comes from the line of Steve Butler with Canaccord Genuity.

Aaron, on the Equinox acquisition, again, I mean given your bullish comments on copper, is it fair enough to say that with or without the Equinox, a unique situation being presented, would you have still looked at a sole copper mine acquisition regardless of the Equinox situation? I mean, I know it's presented itself on the M&A situation but would you have looked at copper regardless of Equinox?

I think we've been building out, I guess, our copper exposure more organically. We've been, particularly with Zaldívar, and we already are -- it's important to highlight, we already are a copper producer. We produce over 300 million pounds and as we build out Casale, that's going to add 200 million pounds. Reko Diq would add more pounds. So we are already in the copper business. But it's been more of an organic focus, looking how to develop the sulfides at Zaldívar, which we've made real progress and so there's the potential to maybe double that mine. From an exploration perspective, we have the El Indio land position in Chile, which is probably one of the best land positions you could have in that region and so we are exploring for copper there. This is a land position that has been held by gold companies for 25 years. So it's never been explored for copper and so we're looking for copper there. So I think our focus has more been organically but it's based on a theme of what we've been pushing as a management team with all of our assets, how do we extract as much value out of them as much possible. And so it's not just within Zaldívar that we have opportunities to grow that asset. I mentioned Lagunas Norte, there's about 3 million ounces there that we've had a breakthrough in the metallurgical side. So we can now get those ounces. Those will be new ounces. They're not in our current resources. So those will be new ounces to us. Turquoise Ridge is an example of that, where the underground would be complementary with the open pit and that will grow the resource to over 20 million ounces of gold. We've increased our exploration budget and as I mentioned -- and that's largely, I would say, 95% gold focused on the exploration side. So as I said, the focus has been looking at external opportunities but I would say a particular emphasis on internal ones. But the situation with Equinox was a unique one and so we responded to it.

Okay. Aaron, the Lagunas Norte, you talked about 3 million ounces, is that the end of mine life extension or is it stockpiled refractory ore that's been achieved perhaps even being stockpiled today? Are we going to see an incremental expansion to the profile of Lagunas, is that correct?

Steve, I'm going to answer that one. What we'll do, we won't wait until the mine is finished. We'll kind of phase it in as Lagunas' profile kind of tapers off a bit. The tapering will remain more leveled as these additional ounces come in.

Okay. And lastly, guys, on Cortez, you talked about Record of Decision coming through -- received in March, enabling operation to immediately revert to original scope. So it actually seems as though Q1 was a pretty good scope already because it sets you up to meet your guidance. So is there even a better scenario here for Q2 or Q3, Q4 as you go throughout the year? How high does production head at Cortez as you go throughout the year?

Steve, the current forecast is roughly the same, still at level of production. We're going to have pretty good Q2 and then it comes down a bit as we move in and out of the ways [ph] phases but it's more or less the same sort of performance.

I think the scoped constraints we had before was with respect to trucking ore over to Goldstrike and dewatering levels. And so we were able to operate the mine without being able to -- without having to or not having to do those activities. But now we're not restricted anymore so we can dewater as originally planned and we can ship ore across to Goldstrike as we originally planned.

But Cortez Hills itself was actually, obviously a pretty big contributor and working at a pretty decent level in the first quarter, is that correct?

Yes, we got -- the split was 366,000 ounces in Q1, 258,000 came from the new pits, 70,000 from the new underground mine and 39,000 came from the pipeline mine.

And the next question comes from the line of Barry Cooper with CIBC.

Probably a couple of questions for Peter as much as anything. The sulfide component for both Lagunas Norte and Zaldívar that you're talking about for the expansions, I'm assuming none of that material is in any of your resources. Certainly, it wouldn't be in your reserve numbers but it's not in your resources either, is that correct?

Let's start with Lagunas Norte. We've assumed some of those ounces will come in at about year 5. So they would be categorized as -- we'd probably call it a Tier 3 type production. So it's not improving improbable [ph] but it's a Tier 3 type category. Then on the Zaldívar sulfides, we've done insufficient engineering to categorize as a reserve yet. But as engineering gets completed, then we will -- and the drilling is well to complement that, then those sulfides will be recategorized as resources and reserves.

Okay. Peter, I'm just not quite familiar with the terminology Tier 3. I know exactly what you mean but I was trying to relate it to the numbers that you have in the tables that you put out for reserves and resources. So just as a refresher, Lagunas Norte has a mineral resource, exclusive above of the reserves obviously of about 750,000 ounces. Clearly, that's not anywhere close to the 3 million that you talked about and then for Zaldívar, let me just get the number here. So Zaldívar, the resource number for Zaldívar is only like somewhere around I guess 750 million pounds. So I'm just wondering, obviously there's a large component there that I guess you're calling Tier 3 that doesn't make it even into your M&I or even into your inferred, is that correct?

Maybe I can jump in. We have a categorization of our projects around here Tier 1, 2 and 3. And 3 is one which we sort of internally characterize as a bit further out and more at a scope and study type level. But I think to answer the -- maybe to clarify, the 3 million ounces at Lagunas are not in our resources and similarly, the Zaldívar pounds are not in our resources right now. So these would be new additions.

Right. Okay, good enough. And I understand the circumstances, legalities and everything, all like that with respect to having to report them. Just one other question, Peter, you indicate 55% construction completed at Pueblo Viejo. I'm not an expert on this construction, that seems low at this point in time given that you want to be putting some sort of material through towards the end of Q4. Are you indeed happy with the time frame on the construction level at this point in time?

Yes, I think 55%, I mean if you calculate on different things like quantities and volumes and man hours. We've actually gone to the site. Now, most of heavy lifting has been done and we now have a lot of man hours, which are going to be linked to shredding cables, putting in walkways, that sort of stuff. So most of the heavy lifting is actually being done.

Okay, good enough. We'll look forward to some start-ups there come at year-end.

The next question comes from the line of Anita Soni with Crédit Suisse. Anita Soni - Crédit Suisse AG: Just a question with regards to the revenue split that you have there. Does that 9 million ounces include Cerro in 2015?

No. Anita Soni - Crédit Suisse AG: Okay. And so some of the 1 billion pounds of copper that you were estimating, was that -- it doesn't include Cerro either?

The 1 billion is kind of a buildup where you take Zaldivar's 300 million pounds, you take Equinox, we contributed about 400 million and then an expanded Lumwana would add another 250-ish million and expanded Zaldívar would add 300 million and then Cerro Casale would add 200 million. So that gets you to about 1.4 billion or so. Anita Soni - Crédit Suisse AG: 1.4 billion pounds of copper?

Yes. Anita Soni - Crédit Suisse AG: Okay. So that's it for my question.

The next question comes from the line of Kerry Smith with Haywood Securities.

Aaron or maybe Peter can answer this, you talked about cash costs in the copper business trending higher towards the back half of the year, you didn't actually give any reason as to why that would happen. I'm just curious what that's related to, if it's general cost inflation because you have your asset cost kind of locked in?

Sorry, Kerry, were you talking about copper cash cost or gold cash cost?

No, copper. Like in the MD&A, you talked about gold cash costs trending higher in the second half but you do give a number of reasons for that. But then you talked about copper cash costs trending higher, but there are no sort of reason as to why that's the case. I'm just curious why the copper cash costs are going move higher in the back half.

Kerry, it's Jamie. I have a couple of reasons for that. There's a high sulfuric acid used and there are different prices all over. We're hedged on sulfuric acid. Those prices will change a little bit and also some additional energy costs and also the grade will change a little bit. So those are really the 3 factors that are going to slightly increase the cost at Zaldívar over the course of the year. But we're still very comfortable with our overall guidance.

Okay. And secondly, for Casale, with this expectation at the capital cost is going to be, say, 25% higher. I'm presuming when you look at that project and decide whether you go ahead with it or not, you'll be using slightly higher metal prices as well. I'm just curious what sort of metal prices you would use or the Board would use to decide on a construction decision for that project?

Well, I think we'll -- like we do with all of our projects, we'll use a range. We'll look at things like spot pricing, forward curves and then we have our kind of internal, what we call our treasury numbers and then we'll stress test them, up and down just to again understand the robustness of the project.

Okay, I guess it's somewhat helpful. Okay, I'll leave it at that. And then just maybe the last question if I could. Just on Equinox, when would you have first started to look at that opportunity?

We were familiar with the company. We -- obviously, from a corporate development perspective, we like to stay abreast on what's going on in our industry and Equinox is in Africa where we have a presence as well. So we were familiar with the company, what they were doing. But I think that it was really when the Lundin transaction happened that, that's when we intensified our analysis of the company and then clearly what mid metals did [ph] that accelerated things that much further.

Okay. So it kind of started with the Equinox bid for Lundin. Okay. That helped.

Our next question comes from the line of David Haughton with BMO Capital Markets.

I have a question with regard to Turquoise Ridge. You've got a JV there with Newmont. The 800,000 ounces that you suggested as an annual production, is that 100% or is that your share basis?

That's 100%, David.

And that is all coming from the open pit or the blend of the existing operation and the open pit?

* It's a combination of the two.

And is that included in your 9-million ounce target for 2015?

No.

And have you got some arrangement as to how you're going to treat the ore? Will you take all of that ore and treat them [ph] on behalf of Newmont or would they take a portion of it? Has that been worked out at all?

That hasn't been decided yet, David. That will be part of the analysis in the pre-feasibility study.

Okay. And then just reflecting on your exploration, you have significantly lifted that budget this year. A big chunk of it, if I'm reading that chart correctly, is in North America. You've already said that 16 million of that is Turquoise. What are the other major targets that you're after in North America?

David, it's Rob Krcmarov here. We've had success at just about all of our mine sites and also some of the exploration probably is away from our mine sites. So the next largest one would be the Cortez property. Also significant expenditure at Ruby Hill, where we've also had some recent success and Bald Mountain as well, and probably around about $7 million at Spring Valley.

Rob, could you talk a little bit more about what you're after at Cortez?

At Cortez, we have multiple targets. You'll recall several years ago that we found the Cortez Hills' lower zone. So we've been drifting out there to do some infill drilling and the more we drill out there, the more we find. We've been adding a little bit of extra tons and also grade. We're also looking at optimizing and looking for expansions to the pipeline pit, exploring under the pavement between pipeline and Cortez Hills, as well as exploring directly south of Cortez Hills. That's an area that's been very sparsely tested and an area of some significant pediment cover but not all of it is thick, and the structure goes through there and I think there's some interesting work to be done there.

So this is extension of mine life potential or expansion kind of potential?

I think there's opportunities for both as well. We're also exploring around hill top as well and doing a preliminary economic analysis on that one.

Our next question is a follow-up question from the line of Jorge Beristain with Deutsche Bank.

Just a follow-up. I wanted to also ask about the dividend policy. I noticed that your dividend declared today at $0.12 was the same as it has been for the past 2 quarters and in light of the rising gold pricing, what some of your other peers have been doing under gold dividend policy, I was wondering if you could just talk to that point.

Sure. Look, our policy approach is one where we want to have a progressive dividend and so we do have a goal of 1 to 2 increase of dividend in a regular basis. We did that last year. We increased the dividend 20% and so it's something that we'll look to continue to do.

Do you think that the current deal for Equinox in any way would prohibit a dividend hike in the next few quarters? Would you like to maintain some fiscal conservatism until the deal gets done?

I think practically speaking, we are taking on and levered up our balance sheet somewhat to this do. I think we still have very strong financial metrics, but it probably is. And this is something we discussed with the Board. There's, I think at this point, probably a propensity to keep the dividend where it is for the next 2 quarters, but then we'll reflect on it as we do reflect on it every quarter and the Board will continue to review it. Now clearly if gold keeps doing what it's doing, then the debt that we've taken on is going to get paid even more rapidly. And so our financial capacity and our ability to ramp up dividends will be that much more improved.

Sure. Sorry, I just didn't catch the point on your financing costs. Did you say you were looking at about a 3.5% pretax cost of debt?

If we combine the use of our revolving credit facility and new revolver 5-year type revolver, plus some long-term bonds that we'll use to take out the bridge as soon as we can, that weighted average cost of debt is, based on the current market, is under 3.5% pretax. So after-tax, potentially under 3%.

Our next question comes from the line of Richard Gray with Cormark.

I just have a quick question on your cash costs. With the adoption of IFRS on January 1, did that impact your reported cash costs from Q4 to Q1?

Yes, it did. There are a couple of major items and you can actually then see some of the comparisons in 2010, where we're comparing apples-to-apples with IFRS. So the major items that changed additional deferred stripping, which reduces the cash costs and also a change in reporting of royalties that are now -- some royalty-type expenses are net profits taxes that are tied with the gold price are more categorized correctly as taxes and that's why our tax rate has gone up slightly. And so it's really those 2 items, which are the biggest adjustments to our cash cost. But as I mentioned, to see what that impact is, you can -- given that we've adjusted 2010, you'll have a better idea of what that impact is on an apples-to-apples basis.

Okay. And then just on that, the $450 million to $480 million guidance for 2011, that was assuming the changes with IFRS?

That's correct. Yes.

Our last question comes from the line of Anita Soni with Crédit Suisse. Anita Soni - Crédit Suisse AG: I just want to clarify 2 things. First, you were saying that Turquoise is not included in the 9 million ounces. I think when you first introduced that 9-million ounce target in September, one of the areas that you cited was Turquoise Ridge being one of the areas of increase. Is that correct?

No, Turquoise is not in those 9 million. Turquoise is one of the project we still have work to do in terms of pre-fees and fees. So that gets us outside the 5-year time frame. Anita Soni - Crédit Suisse AG: Okay. So then perhaps you could just give me a really quick summary of where the increase, the 1.2 million would be coming from.

Well, the biggest increases will come from our new mines, Pueblo Viejo and Pascua-Lama. So that's the biggest jump and then we'll have some -- the benefit of some of our existing mines, which had previously thought to have been depleted like of Pierina, for example. We're going to get some more years out of Pierina. Hemlo, more years out of Hemlo. Bald Mountain, we're going to get some more years of that. So a combination of that. Plus there are some additions to some of our smaller lines, which adds on the ounces as well. But the bulk of it really is coming from PV and Pascua and then mine extensions to some of the shorter mines that previously would have ended sooner. Anita Soni - Crédit Suisse AG: And then the second question is with regards to the timeline now for the -- could you just give a -- I'm sorry, for the acquisition of Equinox, could you give us a brief, I guess a little synopsis on how you see that playing out over the next few months?

Well, our offer was started yesterday officially and that got the clock going and we can take out shares. We can't take out shares within 35 days. So that basically gets us to the first week of June.

I will now turn the call back over to you. Please continue with your presentation or closing remarks.

Okay. Well, again, thank you for joining us today. We appreciate your questions and look forward to updating you at our second quarter conference call. With that, I guess we'll terminate the call.

Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation, and ask that you please disconnect your lines. Have a good day, everyone.