Ladies and gentlemen, thank you for standing by. This is the conference operator. Welcome to the Barrick 2019 Fourth Quarter Results Conference Call. [Operator Instructions]. As a reminder, this conference call is being recorded, and a replay will be available on Barrick's website later today, February 12, 2020. I would now like to turn you over to the room where Mark Bristow, Chief Executive Officer, will be in the meeting momentarily. Thank you for your patience.

We're linked up, are we? So very good morning to everyone. Thank you for coming. Nice and cold outside. Appreciate you risking the weather. And again, another year. And it's a pleasure for me to share our look back over the last 13 months with you today. As you know, this is the full set of results that Barrick is publishing since its transformational merger with Randgold Resources. And it's gratifying to report not only that we have delivered a strong performance, but also that we have made significant progress towards our goal of becoming the world's most valued gold company. Achieving this, obviously, requires technical excellence, but even more than that, it demands a long-term strategy, one which recognizes that we operate in a changing world where business is expected to meet new standards of behavior and where ethical issues have become commercial considerations with serious consequences. One of these is ESG, which rates how well a company manages its environment, sustainability and governance. And right now, I think there's a little bit too much focus on the E part of the ESG. The S is as important and so is the G. That is, in other words, something that's been very dear to my heart and was the basis of the Randgold Resources strategy, and that is social license or license to operate. And it definitely calls on that full ESG vision. To Barrick, securing and maintaining its operations' social license is a strategic comparative, a core part of our business and just not another box to tick. With major investors now placing ESG at the heart of their decision-making, the rest of the industry will have to follow our lead. Just getting this -- so this is a cautionary statement. Please take note of it. And for…

Mark, it's Greg Barnes from TD. And then maybe jumping again a little bit. But in the 10-year plan, can you sustain that 5 million ounces a year production profile without building a new mine?

Sure. Yes. Yes, that's -- certainly, that's every indication where the teams are at the moment. We've got organic growth. So some -- so Nevada has got some upside that we've got to work on. I think Latin America is pretty flat. And -- but no doubt we've got opportunities there, organic-wise. And also, can we get to 800,000 ounces, closer to 1 million ounces out of PV? And then AME, you'll see in the graphs that you got, it goes from 1.5 to 1.3. But again, that's based on what we've got today. And so it highlights where we can go. But when we stack those 3 stacks together, we get that 5 million ounces for the 5 years, and we've got the same looking at 10 years. And we've got opportunities built into that 10-year plan, organic opportunities, that we'll highlight for you when we deliver it. Because remember, it's a production plan. So it just shows you how we're planning to do, and then we'll roll that 5-year plan. and if any luck, we'll continue to roll the 10-year plan. That's the plan.

Is there any thinking about growth?

Sure. Growth. What is growth? I mean, the best growth I can give you today is this. Sorry, that one. Because if you transfer that into a cash flow number, and you look at different numbers, you grow the cash. So -- and that's what I -- you've watched -- Greg, you've been with me all this time. How many times did people suggest that I should go and buy Durban Deep or this company or that company, because everyone was focused on growth being ounces? And we stuck to our numbers. We use the filters, which we very clearly have shared with you back in January last year. And we will grow this business. First of all, it needs this growth because we need to sweat these assets. And secondly, growth opportunity for us is, we would -- I would change the term growth to investment opportunities. With the new onset investment means that you intend to get some returns back from your effort rather than just growing ounces. And as you know, we're not shy of taking on the challenge.

Matt Murphy with Barclays. Just wondering, with the reserve update, where you're at now in this MRM transition? Are you where you want to be? Is there a lot more work to do on these geologic models before we start talking about new drilling?

So we're drilling -- our budget this year is $170 million just on -- under Rob's stewardship. So where -- we spent most of our money on very near-term Brownfields work last year, tidying up. Most of our exploration team lived on the mines because we had to redo things. We re-logged all the core in PV, all the core in Veladero. We've redone all the models in Nevada. We re-logged everything in Lumwana. We've -- the one that we didn't do a lot on that -- because we haven't got any more information is Porgera. But all the rest, we've done a lot. And we're busy with that exercise right now with Twiga. But we've got -- there are two things. The mineral resource management team and that philosophy is completely entrenched in our organization. I mean, Catherine is a geologist, so that's what's easy. Even my engineering colleague, he's fully committed on the MRM side. And Willem, who's an -- a lawyer, he's -- I mean I know we have to put them in the right place, but he's got some very strong MRM people behind him. And so that's what it is, is that philosophy is well entrenched in our organization. The general managers understand that, this year, we did these plans have come from the mines. They own the reserves, they own the planning, the geologists are completely integrated in the business of planning. And again, we've got work to do. We are busy reshaping and improving the efficiency of a very complex geological planning program in Nevada because it's a huge organization. So we've got it 90% right, but we need to tidy up a little bit. We've also moved geologists around to get a little bit of a different view. I think the big…

Anita Soni from CIBC. So you talked about adding mineralized envelopes around the resources. If the resources move from inferred M&I into reserves, would you expect additional dilution? Or is that it?

No, that's it. Yes. Look, yes, we do. I mean, we look at sand and mining shapes when we model it. And there's very -- I mean, I guess -- let me answer it a different way. So when we looked at $1,200 from $1,000 in Kibali, for instance. When we move the mine -- we tried to test the higher gold price, lower cut-off grade, we didn't really change the reserves because the shape of the ore bodies are such that you are in a hard boundary. So a lot of the ore bodies that we have on hard boundaries. And so you can -- when you move them, we really don't change the dilution. And we just continue that process. But on new projects, we make a conscious effort to manage dilution and losses and things like that in our studies and in the reserve calculation. So those sort of new deposits like satellites and that would come up, but they're not in the inventory at the right grade anymore because we're still very widely space drilling. I think the key, Anita, to -- I mean, if somebody -- one of our shareholders called us the other day and said, can we give you -- can I give him a view of what we had looked like at $2,000? Well, it's 171 million ounces. And what's exciting about Nevada is when you look at our mine plan, because we're going underground, we're increasing the grade, keeping the production, in fact, rising the production. But what we do is we open up capacity. We actually closed down some of the facilities. So in a high grade gold -- because high-grade doesn't help if you haven't got processing capacity. But Nevada has that significant opportunity of being able to grow goals because we'll, at a higher gold price, lower cutoff grade, we access, again, more upside or we have more flexibility for the capacity, so we've got capacity. The same with some of our big mines, where we've got leach, with leach pads. You can increase your capacity quickly, whereas in Kibali, for instance -- I mean, Kibali has still got capacity, we don't use all the capacity. So that's a bad example. Loulo has got full capacity. So you add out reserves, you just add life. You don't really add extra gold. Does that make sense? Can we move -- Josh, you're going to say something? Come on. You're always a pool of wisdom. So should we go to the -- is there any questions from the phone inside?

[Operator Instructions]. Our first question is from Chris Terry of Deutsche Bank.

I just had two quick ones. Just in terms of the overall asset optimization, you've talked a little bit about projects where you can unlock value. Now that you've completed the asset sales at Kalgoorlie and Massawa, from here, if you can't get the value you're looking for in any other assets, are you comfortable that the portfolio is what it is? Or is that still something you're working on around the edges on a couple of the assets? That was my first question. And then just with the 10-year plan, just to prepare for that a little bit. Is the idea that you showed the production plan over the 10 years, but you're also going to give -- should we expect a lot of detail on some of the assets like Donlin, et cetera? Or is it just focused really on the production side?

Okay. Thanks. So we're not going to put Donlin in because we managed at $1,200. So we're not changing the rules in this. We're showing you that we've got visibility on the runway for a 10-year program, and there might well be opportunities that we will highlight, but there wouldn't need to be opportunities that make it at $1,200 gold price. So that's -- the optionality is what it is, and we'll leave it there. And that's why it's important. So we've redone all our resources. We can assure you, Rod signed off on them. There are proper mining shapes in a proper mining plan. So it's not just geological resources. Even the inferred, we look -- so if you look, we also changed the grade at Fourmile. Initially, Fourmile, it's a bridge here. It's a classic Carlin bridge, so it's very high grade. But very awkward shapes, not mineable at all. So we put in the mine stopes, the plan -- and sort of conceptual stopes, and then we diluted it properly so that we know we can mine it, provided that we -- our drilling continues to deliver. All those ounces are in third, aren't they, Rob? So there's work to do but at least that's how we've always done thing. So that's why you don't get big surprises when you do it properly. So I think for me, this is -- right now is to really sweep the assets we've got with the management team, and it's another major of whether we really understand mineral resource and reserve base as a management group, and then we'll look at other opportunities. The second question was? What's your second question?

The other question was just on the overall, the portfolio assets overall. And whether you want to keep -- whether there's anything else you're targeting. Just talk through that.

So right now, all our assets are producing, making a bottom line contribution after everything. So -- but they're not all Tier 1, as you can imagine. And we are very focused on building an ice cream company. And so -- but the market is a bit oversupplied at the moment with sale options. So again, as I've always said, we're -- first of all, we don't do this publicly. We are very mindful, and that's why we were able to really build a transformational transaction with Teranga. It was a lot of work because we really see our host countries as an integral stakeholder of our assets. And so we'll continue to work with them and seek or respond. In most cases now, it's a response to interest rather than active marketing. And as you say, we don't have to sell anything. I mean, the copper assets are -- they produce -- they contribute about 10% of our bottom line this last year. But they're not -- I mean, in any way you look at it, they're not Tier 1 assets, but they are profitable assets. So -- and we'll work with those. A lot of them are just pure copper assets rather than gold-copper assets, too. So in the fullness of time, we'll get there. Right now, we've had a phase of alignment reinvention. And really, I would describe 2020 as a year of delivery. We've got a lot to do to build on the foundation that we've set. It's much harder work in the next 12 months than the sort of more flashy work that we did last year.

There are no more questions from the conference call.

Thank you. Anybody else want a question? Cup of tea is quite a borrowing process. Listen, back in London we used to have a glass of wine. We're working on it. But join us for a cup of coffee or tea or glass of orange juice. And anybody who wants to ask questions, you've got, as you can see, some of the executives here to take those questions. Thanks again for coming and for your diligence in listening through this presentation.

This concludes today's conference call. Should you have any additional questions, please contact the Barrick Investor Relations department. You may now disconnect your lines. Thank you for participating, and have a pleasant day.