sbs/barrick gold j/v partners - big moves ahead wi

Big moves via Barrick Gold, Lundin Group and Sunridge are now on the doorstep, which directly affects Australia's metal play minnow and Joint Venture Partner SBS. Barrick will be in expansion and aquisition mode following on from their outstanding quarterley report reprinted below as follows:

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The figure released in particular hedge book reduction were just stunning. Any wonder shares of the biggest Gold miner in the world surged over 6% last night. Very bullish for Gold.

Highlights

- Q1 net income was $224 million ($0.29 per share) and operating cash flow was $378 million ($0.48 per share), rising sharply over the prior-year period's net income of $66 million ($0.12 per share) and operating cash flow of $122 million ($0.23 per share).

- During Q1, Barrick successfully completed its $10.0 billion acquisition of Placer Dome, and is integrating the operations within its Regional Business Unit structure and targeting $200 million in annual synergies from 2007 onwards.

- As of May 3, 2006, the gold hedge position has been reduced by 5.7 million ounces. The corporate gold sales contract portion of this position currently totals 4.8 million ounces, representing only 4% of reserves, excluding project gold sales contracts and associated reserves. Barrick expects to reduce this position by a further 2.0 million ounces before the end of 2006, and to completely eliminate the remaining 2.8 million ounces of its corporate gold sales contracts no later than the end of 2009.

- Equity gold production was 1.96 million ounces at total cash costs of $283 per ounce(1), and copper production was 72 million pounds at total cash costs of $0.77 per pound(1). The Company expects gold production for the remaining quarters of 2006 to be higher, and expects to produce between 8.6 - 8.9 million ounces of gold for the year at total cash costs of $275 - $290 per ounce, and approximately 350 million pounds of copper at total cash costs of about $0.75 - $0.80 per pound.

- During Q1, Barrick entered into an agreement with Antofagasta PLC to acquire 50% of Tethyan Copper Company's Reko Diq gold and copper project and associated mineral interests in Pakistan.

Barrick Gold Corporation today reported net income of $224 million ($0.29 per share) for first quarter 2006, rising sharply from net income of $66 million ($0.12 per share) in the year-earlier period. First quarter 2006 net income was reduced by $31 million ($0.04 per share) of special items. (See page 10 of Management's Discussion and Analysis for further details.)

Operating cash flow for first quarter 2006 was $378 million ($0.48 per share), compared with the prior-year period of $122 million ($0.23 per share). Operating cash flow was reduced by $20 million ($0.03 per share) in first quarter 2006 due to Placer Dome restructuring costs.

"Our strong earnings and cash flow performance in the first quarter benefited from rising gold and copper prices, production from our new generation of mines and the contribution of Placer Dome mines," said Greg Wilkins, President and CEO. "The acquisition of Placer Dome has strengthened our competitive advantage, as we have the strength, breadth and scale to capitalize on opportunities and deliver shareholder value."

PLACER DOME ACQUISITION

In January 2006, Barrick gained control of Placer Dome when it acquired 81% of the outstanding common shares. In March 2006, Barrick completed the acquisition, and Placer Dome became a wholly-owned subsidiary. As a result and following the Goldcorp transaction, Barrick has acquired a portfolio of ten producing gold mines, two copper mines and three major gold projects. The Company has issued a total of 322.8 million new common shares and paid $1.3 billion in cash for total consideration of $10.0 billion. Barrick expects to receive approximately $1.6 billion from Goldcorp Inc., when it closes its agreement to sell four Placer Dome mines and other agreed interests. This is expected to occur by mid-May.

HEDGE BOOK REDUCTION

Barrick remains positive on the long-term outlook for gold prices and, further to its announcement in February, has aggressively reduced the legacy Placer Dome gold hedge program. During the quarter, the combined hedge positions were reduced by a total of 4.7 million ounces. As of today, a further 1.0 million ounces have been eliminated for a year-to-date reduction of 5.7 million ounces. The total cost of reducing the Placer Dome position was approximately $1.2 billion, of which $814 million was incurred in the first quarter. The corporate gold sales contract position currently totals 4.8 million ounces, representing only 4% of reserves, excluding project gold sales contracts and associated reserves. The Company intends to eliminate the remaining 2.0 million ounces of the Placer Dome position by the end of this year, and expects to eliminate the remaining 2.8 million ounces of the corporate gold sales contract position no later than the end of 2009.

PRODUCTION AND COSTS

In first quarter 2006, Barrick produced 1.96 million ounces of gold at total cash costs of $283 per ounce, compared to 1.14 million ounces produced at total cash costs of $241 per ounce for the prior-year quarter. First-quarter gold production and total cash costs include results from the acquired Placer Dome mines from January 20, 2006. They do not include production from the mines to be sold to Goldcorp.

Barrick's financial results benefited from the strong gold price, as it realized $537 per ounce versus total cash costs of $283 per ounce, as well as production from its new generation of mines and the Placer Dome mines.

The Company also produced 72 million pounds of copper during first quarter 2006 from two copper mines. The average realized price for copper sales in first quarter 2006 was $2.31 per pound and total cash costs were $0.77 per pound. Barrick is benefiting from the higher spot copper prices, where prices have recently traded in excess of $3.00 per pound.

"The opportunities for value creation are compelling within the Placer Dome portfolio of assets - especially due to the proximity to our assets and facilities," said Peter Kinver, Executive Vice President and COO. "Our operations team is now focused on improvement initiatives and capturing synergies."

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