GOLDSTRIKE (MEIKLE)

Meikle production and costs continue to be affected by ground conditions at Rodeo and the mining of remnant blocks at Meikle. Ground support rehabilitation efforts are ongoing and have proven successful in providing increases to Rodeo production during third quarter 2003. Similar results are expected in fourth quarter 2003. Remnant mining was re-sequenced to maximize ore recovery and ground stability. Cash costs for the quarter were also pushed higher by difficult ground conditions. As a result, labor, contract services, ground support material, and maintenance repairs were higher than plan. Royalties and taxes were slightly over plan due to the increased gold price, partially offset by lower production and increased costs. Significant events during the quarter included a recommissioning of the failed backfill raise at Rodeo. In 2002, production of the mine declined 10% due lower grades processed. In 2001, the Meikle Mine produced 712,688 ounces of gold for the year, 7 percent higher than plan compared to production of 805,718 ounces in 2000. Total cash costs were $147 per ounce, compared to $119 per ounce in 2000, with higher costs attributable to planned mining of lower grade ore in Meikle, more low-grade development ore and higher training costs. Tons mined surpassed plan by 13 percent in 2001, due to an increase in development ore from Griffin and to the earlier than expected access to Rodeo development ore.

Barrick Gold has posted earnings of USD59 million for the second quarter of 2002, on sales of USD490 million compared with USD58 million on sales of USD518 million in the prior year period. This also compares with of USD46 million for the first quarter of 2002, on sales of USD476 million. Net income before non-hedge-related adjustments, for the quarter was USD48 million, compared with USD72 million last year. This compares with first quarter earnings, before non-hedge-related adjustments, of USD47 million. Barrick realized USD341 per ounce on gold sales for the quarter. This compares with a realized price of USD329 per ounce on gold sales last quarter. Barrick sold 50% of its production at spot gold prices. At the end of the quarter Barrick's premium gold sales program consisted of 17.9 million ounces of spot deferred contracts and 3.1 million ounces of variable price sales contracts and call options. The spot deferred contracts are deliverable over the next 15 years at an average minimum price of USD344 per ounce. This position is down from 18.2 million ounces in the last quarter of 2001. Overall production was lower and cash costs higher than the year-before quarter reflecting the phasing out of several mines, planned lower grades processed at several operations (Goldstrike and Pierina). As well, they relate to lower than planned performances at Hemlo, Kalgoorlie and Meikle. Total production for second quarter was 1.35 million ounces of gold at total cash costs of USD178 per ounce, compared to 1.6 million ounces of gold at total cash costs of USD163 per ounce, for the second quarter last year. This also compares to 1.37 million ounces of gold produced in the first quarter, at cash costs of USD175 per ounce. During the quarter, Barrick's North American operations contributed 56% of production, while South America contributed 14%, Australia 16% and Africa 6%. Barrick will lose 8% of its production due to mines closing this year.

Barrick Gold plans on cutting 5% of its production staff at its Goldstrike mine in Nevada, reported Canada's Financial Post. The company hopes to save $12 million per year by laying off 86 of its 1,700 workers at the mine.