February 28, 2016

Barrick Gold Corporation

NYSE: ABX - Precious Metals

Grade Earnings Quick Facts

36.4 Last Earnings Release

Last Qtr. Actual vs. Est.

10/29/2015 Dividend Yield

$0.11 / $0.11 52 Wk High

1.03%

$13.58

Next Release 02/18/2016 N/A 52 Wk Low $5.94

$13.53
02/26/2016
Year Ending 12/31/2015 $0.29 Short Interest 3% of float
Rated 'SELL' since Aug 3rd, 2013, when it
Year Ending 12/31/2016 $0.36 Market Cap $15.8B
was downgraded from 'HOLD'

Overview
Company Scores Very Poor Fundamental Grades
MarketGrader currently has a SELL rating on Barrick
Gold Corporation (ABX), based on a final overall grade
of 36.4 scored by the company's fundamental analysis.
Barrick Gold Corporation scores at the 45th percentile
among all 6040 North American equities currently
followed by MarketGrader. Our present rating dates to
August 3, 2013, when it was downgraded from a HOLD.
Relative to the Precious Metals sub-industry, which is
comprised of 184 companies, Barrick Gold
Corporation's grade of 36.4 ranks 58th. The industry
grade leader is Perseus Mining Limited (PRU.CA) with
an overall grade of 82.0. The stock, up 83.63% in the
last six months, has outperformed both the Precious
Metals group, up 31.05% and the S&P 500 Index, which
has returned -3.52% in the same period. Please go to
pages two and three of this report for a complete
breakdown of ABX's fundamental analysis.

Price, Rating and Sentiment History - 2 Years

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 February 28, 2016

Barrick Gold Corporation

NYSE: ABX - Precious Metals 36.4
Investors Betting on a Turnaround Must Be Cautious as Company's
Growth C Growth Record is Still Very Weak
Barrick Gold Corporation's sales growth continued its ongoing long term
Market Growth LT Fdecline last quarter. Total revenue for the period was $2.26 billion,
12.81% below the $2.59 billion booked by the company a year ago. Its
Market Growth ST D12-month trailing revenue, which also included last quarter's results, was
EPS Growth $9.09 billion, 37.45% lower than the 12 months ended three years ago.
A+
As sales continue to slide the company will need to cut costs in order to
Growth Potential Fprotect its margins and its cash reserves. However, unless business
conditions improve soon, more drastic restructuring measures may be Revenue Qtrly. 12/31/2015 $2.3B
Earnings Momentum B-
required. It also reported a healthy jump in profits last quarter from the Revenue Qtrly. Year Ago $2.6B
comparable period a year earlier, a marked contrast to its long term profit Revenue 1 Yr. Chg. (12.81%)
Earnings Surprise Fdecline. We measure long term profit growth by comparing the latest full Revenue 12 Mo. Tr. Latest $9.1B
year (12-month trailing) results to the equivalent period three years before. Barrick Gold Corporation's Fourth Revenue 12 Mo. Tr. 3Y Ago $14.5B
quarter profit rose to $2.62 billion from $-2.85 billion (excluding extraordinary items) a year earlier, a 8.03% Revenue 12 Mo. Tr. 3Y Chg. (37.45%)
increase, which contrasts with its 12-month trailing loss of $2.84 billion, for the period ended also last quarter,
326.77% worse than the $-665.00 million loss it posted three years before. The company reported a significant
margin contraction in its latest quarter, extending an ongoing trend; even though the pace of the decline slowed
down from the two preceding periods, these results suggest problems with its business model. Its EBITDA,
operating and net margins fell an average 16.54% relative to the year earlier period.
The company's latest earnings report of $0.11 per share, announced on October 29, 2015, which met the
consensus analyst estimate, had no effect on the price of the stock, which remained unchanged from the trading
day before the announcement to the trading day immediately following it. Despite meeting the latest consensus
estimate its average earnings surprise record is very poor; it has missed analysts' estimates by an average of
12.94% over the last six reports.

Net Income Qtrly. 12/31/2015 ($2.6B)

Net Income Qtrly. Year Ago ($2.9B)
Net Income 1 Yr. Chg. (191.97%)
Net Income 12 Mo. Tr. Latest ($2.8B)
Net Income 12 Mo. Tr. 3Y Ago ($665M)
Net Income 12 Mo. Tr. 3Y Chg. (526.77%)

Stock's Valuation Already Reflects Past Financial Results and Isn't

Value B Without Risk at this Point
Barrick Gold Corporation's current P/E ratio is not meaningful given that
Capital Structure F
the company has lost $2.04 per share in the last four quarters. Our P/E
analysis compares the stock's 12-month trailing P/E to our own calculated
P/E Analysis F
optimum P/E, which is based on the company's three-year EPS growth
Price/Book Ratio rate. Our grade is then determined based on whether the stock is trading
A-
at a discount or a premium to the optimum P/E. Barrick Gold
Price/Cash Flow Ratio A
Corporation's earnings per share have fallen at an annualized rate of -
54.63% in the last three years. This growth rate is likely to deteriorate P/E Ratio 12 Mo. Tr. 12/31/2015 -6.63
Price/Sales Ratio A+
further in light of the company's most recent margin contraction, unless it
Optimum P/E Ratio 15.00
is reversed very soon and its Profitability grades improve. The stock's
Market Value F
forward P/E of 37.95, based on the next twelve months' estimated Forward P/E Ratio 37.95
S&P 500 Forward P/E Ratio 15.20
earnings per share, is higher than its trailing P/E as well as the S&P 500's forward P/E of 15.20. Such valuation
seems out of line with the company's financial performance and EPS growth prospects, making the stock highly Price to (Tangible) Book Ratio 6.60
speculative. Price-to-Cash Flow Ratio 5.89
Price/Sales Ratio 1.73
Barrick Gold Corporation's current share price seems inexpensive compared to its book value, trading at a 2.21
price to book ratio. However, when intangible assets such as goodwill, which account for a full 66.53% of the
company's total shareholders' equity, are subtracted from its total assets, the stock's price to book ratio increases
quite significantly to 6.60, a richer multiple. The company's low price to cash flow ratio of 5.89, based on the
$2.30 it generated in cash flow per share over the last four quarters, would be an attractive valuation if its overall
fundamentals weren't so poor. Therefore such a low ratio could mean investors aren't willing to pay much for the
company's earnings prospects. Its price to sales ratio of 1.73, based on trailing 12-month sales, is 99.98% lower
than the Precious Metals's average ratio of 7671.67, a very large discount to its peers. Our final value indicator
looks at the relationship between the company's current market capitalization and its operating profits after
deducting taxes. By this measure Barrick Gold Corporation's $15.76 billion market cap is excessively high
considering it is 15.70 times its most recently reported net income plus depreciation (added back since it's a non-
cash charge).

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 February 28, 2016

Barrick Gold Corporation

NYSE: ABX - Precious Metals 36.4
Company's Weak Profitability Grades Underscore a Difficult
Profitability C Operating Environment
While Barrick Gold Corporation's operating margins were higher than the
Asset Utilization F
industry average based on 12-month trailing results, the company actually
had a net loss of $X in the period, resulting in a very poor return on
Capital Utilization F
equity and a low profitability composite grade. This suggests that either
Operating Margins the company had a large non-recurring charge during this period or that
B+
its entire peer group operates in a weak business environment and is not
Relative Margins A+
very profitable. Operating income during that same period accounted for
16.06% of sales, 685.60% higher than the average operating margin for
Return on Equity F
the Precious Metals industry, which was 2.04%. Barrick Gold
Corporation's dismal return on equity of -39.75% based on its last four
Quality of Revenues F
quarter's results marks a deterioration from the year earlier period, in
which the return on equity was -28.48%. This pattern indicates either a questionable business model or extremely
difficult operating conditions.
This decline raises some questions about the soundness of the company's capital structure, which, while still
sustainable, has too much leverage relative to its very poor return on equity. Its total debt is 1.50 times its total
equity, including long term debt that accounts for 59.57% of total capital. Barrick Gold Corporation's core
earnings have shown a significant slowdown in the company's business based on twelve month trailing EBITDA
of $3.44 billion. This represents a 17.14% decline from the same period ended a year earlier in which the
company's core operations generated $4.16 billion. EBITDA is used as a measure of earnings power because it
includes non-operating charges like interest expenses, income taxes and depreciation and amortization, which
aren't even cash expenses. All of these are included in several areas of our analysis that look at EPS and net
income.

Company's Cash Flow Analysis Shows Mixed Results and Reveals a

Cash Flow B Few Operating Weaknesses
Barrick Gold Corporation's cash flow grew considerably in its latest
Cash Flow Growth A+
quarter to $675.41 million, a 122.72% increase from $303.25 million
reported in the year earlier period. This growth seems to be accelerating
EBIDTA Margin B+
considering that in the last twelve months the company's cash flow was
Debt/Cash Flow Ratio 19.89% higher than the twelve months ended a year ago, a nice increase
A
but quite lower than the current pace. This upward trend should boost its
Interest Cov. Capacity F
margins and overall profitability in the next few quarters. The company's
net debt (total debt minus cash on hand) was $8.27 billion last quarter, Cash Flow Qtrly. 12/31/2015 $675M
Economic Value C
10.18 times its $812.00 million EBITDA. Even though the current ratio is
Cash Flow Qtrly Year Ago $303M
significantly lower than last year's 10.58, Barrick Gold Corporation
Retention Rate F
leverage relative to operating cash flow is too high and may constrain the Cash Flow 1 Yr. Chg. 122.72%
Cash Flow 12 Mo. Tr. Latest $2.7B
company's ability to manage its capital structure effectively as the business cycle changes (by paying down debt
or raising capital to fuel new growth). Barrick Gold Corporation's total debt as a percentage of total capital Cash Flow 12 Mo. Tr. 3Y Ago $5.5B
increased in the last twelve months to 60.08% from 56.24%, measured on a quarter to quarter basis, while cash Cash Flow 12 Mo. Tr. 3Y Chg. (51.2%)
on hand fell from $2.71 billion to $2.48 billion in the same period, a 8.54% drop. If this increased leverage were to Free Cash Flow Last Qtr. $301M
become a trend over the next few quarters it could jeopardize future earnings growth.
According to our Economic Value indicator, which measures a company's true economic profit, Barrick Gold
Corporation's return to its shareholders has been very poor during the last year. What's most important about this Economic Value
indicator is the fact that it takes into account not only the operating costs incurred by the company in running the Total Invested Capital $17.9B
business but also the costs of the capital it employs. Barrick Gold Corporation had $17.66 billion in invested Return on Inv. Capital 8.27%
capital as of its most recently reported quarter, including all forms of equity (common and preferred) and long term Weighted Cost of Equity (0.13%)
debt. And based on its 12-month trailing operating income it generated a 8.27% return on that invested capital Weighted Cost of Debt 4.22%
over the same period. The total after tax cost of capital was heavily weighted towards debt, with a cost of 4.22% Total Cost of Capital 4.09%
compared to the 0.13% weighted cost of equity. When deducting the resulting 4.09% total cost of capital from the Economic Value Added 4.18%
firm's return on investment, its economic value added, or EVA, was a dismal 4.18%. This is a very poor reward for
shareholders tying up their capital with this company. The company announced on March 31, 2015 that it was
cutting its quarterly common dividend 60.00% to 2.00 cents a share from 5.00 cents. Barrick Gold Corporation
has been paying a dividend to its common shareholders for at least 29 years. Including the latest payout, the
stock is currently yielding 1.03%. Barrick Gold Corporation, which lost $2.84 billion during the last 12 months, still
managed to pay out $160.00 million in dividends during the period, which accounted for 5.98% of its cash flow.
Calculating its payout ratio as a percentage of earnings is not meaningful given the company's losses. The fact
that it continues its dividend payout in the face of such losses raises questions about the business' viability,
especially as it continues to deplete its balance sheet and erode its liquidity.

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 February 28, 2016

Barrick Gold Corporation

NYSE: ABX - Precious Metals 36.4
Profile
Barrick Gold Corp. is engaged in the production and sale of gold, as well as related activities which Key Facts:
include exploration and mine development. It also produces copper from the Zaldivar and Lumwana Brookfield PlaceTD Canada Trust
mines and holds other interests, including a nickel development project located in Africa and a Toronto ,ON M5J 2S1
copper-gold project in Pakistan. It operates globally, with a portfolio of 27 operating mines and Phone:
www.barrick.com
advanced exploration and development projects located across the world, and land positions on
some of the prolific and prospective mineral trends. The company was founded by Peter D. Munk in
1983 and is headquartered in Toronto, Canada. Biggest Company in Sub-Industry
Barrick Gold Corporation
Grade 35.6
Market Cap:$21.29 billion

Smallest Company in Sub-Industry

Montan Mining Corp (MNY.CA)
Grade 15.1
Market Cap:$0.49 million

MarketGrader Dilution Analysis Income Last Qtr 12 Mo.

Statement (12/2015) Trailing
Impact of Change in Shares on EPS - Q4 2015
Dilution Summary Revenue $2.3B $9.1B
*EPS Latest ($2.25) Op. Income $355M $1.5B
*EPS Year Ago ($2.45)
Net Income ($2.6B) ($2.8B)
EPS Change 1 Yr. 8%
*EPS ($2.25) 0
C. Shares - Latest(M) 1,165
C. Shares - Yr Ago(M) 1,165 *Earnings per share are based on fully diluted net income per share
excluding extrodinary items. This number may not match the
C. Shares - 1Yr Chg. 0% headline number reported by the company.

EPS if Yr. Ago Shares ($2.25)

EPS Chg. if Yr. Ago 8%
EPS Loss from Dilution $0.00
Balance Sheet Latest

Total Assets $26.3B

*Earnings per share are based on fully diluted net income per share excluding extrodinary items. This number may not match the headline number reported by the company.

Total Debt $10.7B

Stockholders Eq. $7.1B

All numbers in millions except EPS

Ratios
Price/Earnings (12 mo. trailing) -6.63

Price/Tangible Book 6.60

Price/Cash Flow 5.89

Price/Sales 1.73

Debt/Cash Flow 401.35

Return on Equity (39.75%)

Gross Margin (12 mo. trailing) 20.63%

Operating Margin (12 mo. trailing) 16.06%

Total Assets $26.3B '11 '12 '13 '14 '15
Net Profit Margin (12 mo. trailing) (31.21%)
Intangible Assets $4.8B Qtr 1 0.12 0.20 0.20 0.05 0.05
Long Term Debt $10.5B Qtr 2 0.12 0.20 0.05 0.05 0.02
Total Debt $10.7B Qtr 3 0.15 0.20 0.05 0.05 0.02
Book Value $7.1B Qtr 4 0.15 0.20 0.05 0.05 0.02
Enterprise Value $8.3B

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 February 28, 2016

Barrick Gold Corporation

NYSE: ABX - Precious Metals 36.4
Top Down Analysis
# Ticker Grade Sentiment Name Price Next EPS
1 LUC.CA 83.31 P Lucara Diamond Corp. $2.43 02/18/2016
Materials 2 CVX.CA 82.41 Cematrix Corporation $0.34 05/12/2016
N

Stocks in Sector: 479 3 PRU.CA 81.95 N Perseus Mining Limited $0.38 02/15/2016
Buys: 38 (7.93%) 4 GURE 75.89 N Gulf Resources, Inc. $1.70 03/14/2016
Holds: 51 (10.65%)
Sells: 390 (81.42%) 5 OCIP 75.71 N OCI Partners LP $6.59 03/16/2016
6 CFX.CA 75.63 N Canfor Pulp Products Inc. $11.02 02/17/2016
No. of stocks at:
7 APV.CA 75.35 N Apivio Systems Inc. $0.40 04/21/2016
52-Wk. High: 14
52-Wk. Low: 25 8 ITP.CA 73.28 N Intertape Polymer Group Inc. $16.25 03/02/2016
Above 50 & 200-day MA: 173 9 MND.CA 71.91 N Mandalay Resources Corporation $0.88 02/16/2016
Below 50 & 200-day MA: 159
10 DOW 71.52 N Dow Chemical Company $48.74 04/28/2016
207 ABX 36.35 N Barrick Gold Corporation $13.53 04/27/2016

# Ticker Grade Sentiment Name Price Next EPS

1 PRU.CA 81.95 N Perseus Mining Limited $0.38 02/15/2016
Precious Metals 2 KSK.CA 64.66 Kiska Metals Corporation $0.03 04/26/2016
N

Stocks in Sub-Industry: 184 3 AEM.CA 64.25 N Agnico-Eagle Mines Limited $46.72 04/29/2016
Buys: 5 (2.72%) 4 OGC.CA 63.08 N OceanaGold Corporation $3.59 04/26/2016
Holds: 16 (8.70%)
Sells: 163 (88.59%) 5 KDX.CA 60.31 N Klondex Mines Ltd. $3.58 03/23/2016
6 NMI.CA 57.96 P Newmarket Gold Inc $1.88 03/04/2016
No. of stocks at:
7 RGL.CA 57.49 N Royal Gold, Inc. $60.64 04/28/2016
52-Wk. High: 9
52-Wk. Low: 11 8 GCM.CA 56.64 N Gran Colombia Gold Corp. $0.09 11/12/2015
Above 50 & 200-day MA: 115 9 RGLD 56.16 N Royal Gold, Inc. $44.82 04/28/2016
Below 50 & 200-day MA: 25
10 CEE.CA 55.35 N Centamin plc $1.66 03/21/2016
58 ABX 36.35 N Barrick Gold Corporation $13.53 04/27/2016

1. Price Trend. B 2. Price Momentum. A+

5.1
3. Earnings Guidance. F 4. Short Interest. A-

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