Outlined below is information related to our joint arrangements and entities other than 100% owned Barrick subsidiaries at

December 31, 2025:


	Place of business	Entity type	Interest1	Method2
Nevada Gold Mines3	United States	Subsidiary	61.5%	Consolidation
North Mara3,4	Tanzania	Subsidiary	84%	Consolidation
Bulyanhulu3,4	Tanzania	Subsidiary	84%	Consolidation
Loulo-Gounkoto3,5	Mali	Subsidiary	80%	Consolidation
Pueblo Viejo3	Dominican Republic	Subsidiary	60%	Consolidation
Reko Diq Project3	Pakistan	Subsidiary	50%	Consolidation
Norte Abierto Project	Chile	JO	50%	Our share
Veladero	Argentina	JO	50%	Our share
Kibali6	Democratic Republic of Congo	JV	45%	Equity Method
Jabal Sayid6	Saudi Arabia	JV	50%	Equity Method
Zaldívar6	Chile	JV	50%	Equity Method
Porgera Mine6,7	Papua New Guinea	JV	24.5%	Equity Method

1Unless otherwise noted, all of our JOs are funded by contributions made by the parties sharing joint control in proportion to their economic

interest.

2For our JOs, we recognize our share of any assets, liabilities, revenues and expenses of the JO.

3We consolidate our interests in Carlin, Cortez, Turquoise Ridge, Phoenix, Long Canyon, North Mara, Bulyanhulu, Loulo-Gounkoto, Pueblo

Viejo and the Reko Diq project and record a non-controlling interest (“NCI”) for the interest that we do not own.

4The Government of Tanzania receives half of the economic benefits from the Tanzanian operations (Bulyanhulu and North Mara) from taxes,

royalties, clearing fees and participation in all cash distributions made by the mines, after the recoupment of capital investments. Earnings

are recorded proportionally based on our equity interests each period in accordance with the terms of the agreement with the Government

of Tanzania.

5Refer to notes 4 and 35 for details of Loulo-Gounkoto’s developments during 2025.

6Barrick has commitments of $893 million relating to its interest in the joint ventures, including purchase obligations disclosed in note 17 and

capital commitments disclosed in note 19.

7Ownership of Porgera is held in a joint venture owned 51% by Papua New Guinea (“PNG”) stakeholders and 49% by a Barrick affiliate,

Porgera (Jersey) Limited (“PJL”). PJL is jointly owned on a 50/50 basis by Barrick and Zijin Mining Group and therefore Barrick holds a

24.5% ownership interest in the Porgera joint venture. Barrick holds a 23.5% interest in the economic benefits of the mine under the

economic benefit sharing arrangement agreed with the PNG government whereby Barrick and Zijin Mining Group together share 47% of the

overall economic benefits derived from the mine accumulated over time, and the PNG stakeholders share the remaining 53%.

c) Business Combinations

On the acquisition of a business, the acquisition method of

accounting is used, whereby the purchase consideration is

allocated to the identifiable assets and liabilities on the

basis of fair value at the date of acquisition. Provisional fair

values allocated at a reporting date are finalized as soon as

the relevant information is available, within a period not to

exceed 12 months from the acquisition date with retroactive

restatement of the impact of adjustments to those

provisional fair values effective as at the acquisition date.

Incremental costs related to acquisitions are expensed as

incurred.

When the cost of the acquisition exceeds the fair

value of the identifiable net assets acquired, the difference

is recorded as goodwill. If the fair value attributable to

Barrick’s share of the identifiable net assets exceeds the

cost of acquisition, the difference is recognized as a gain in

the consolidated statement of income.

Non-controlling interests represent the fair value of

net assets in subsidiaries, as at the date of acquisition, that

are not held by Barrick and are presented in the equity

section of the consolidated balance sheet.

d) Foreign Currency Translation

The functional currency of all of our operations is the US

dollar. We translate non-US dollar balances for these

operations into US dollars as follows:

▪Property, plant and equipment (“PP&E”), intangible

assets and equity method investments using the rates

at the time of acquisition;

▪Fair value through other comprehensive income

(“FVOCI”) equity investments using the closing

exchange rate as at the balance sheet date with

translation gains and losses permanently recorded in

Other Comprehensive Income (“OCI”);

▪Deferred tax assets and liabilities using the closing

exchange rate as at the balance sheet date with

translation gains and losses recorded in income tax

expense;

▪Other assets and liabilities using the closing exchange

rate as at the balance sheet date with translation gains

and losses recorded in other income/expense; and

▪Income and expenses using the average exchange

rate for the period, except for expenses that relate to

non-monetary assets and liabilities measured at

historical rates, which are translated using the same

historical rate as the associated non-monetary assets

and liabilities.

e) Revenue Recognition

We sell our production in the world market through the

following distribution channels: gold bullion is sold in the

gold spot market, to independent refineries or to our non-

controlling interest holders; and gold and copper

concentrate is sold to independent smelting or trading

companies.

Gold Bullion Sales

Gold bullion is sold primarily in the London spot market.

The sale price is fixed on the date of sale based on the gold

spot price. Generally, we record revenue from gold bullion

sales at the time of delivery, which is also the date that title

to the gold passes.

Concentrate Sales

Under the terms of concentrate sales contracts with

independent smelting companies, gold and copper sales

prices are provisionally set on a specified future date after

shipment based upon market prices. We record revenues

under these contracts at the time of shipment, which is also

when the risks and rewards of ownership pass to the

smelting companies, using forward market gold and copper

prices on the expected date that final sales prices will be

determined. Variations between the price recorded at the

shipment date and the actual final price set under the

smelting contracts are caused by changes in market gold

and copper prices, which result in an embedded derivative

in accounts receivable. The receivable is recorded at fair

value each period until final settlement occurs, with

changes in fair value classified as provisional price

adjustments and included in revenue in the consolidated

statement of income and presented separately in note 6 of

these consolidated financial statements.

Copper Cathode Sales

Under the terms of copper cathode sales contracts, copper

sales prices are provisionally set on a specified future date

based upon market commodity prices plus certain price

adjustments. Revenue is recognized at the time of

shipment, which is also when the risks and rewards of

ownership pass to the customer. Revenue is provisionally

measured using forward market prices on the expected

date that final selling prices will be determined. Variations

occur between the price recorded on the date of revenue

recognition and the actual final price under the terms of the

contracts due to changes in market copper prices, which

result in an embedded derivative in accounts receivable.

The receivable is recorded at fair value each period until

final settlement occurs, with changes in fair value classified

as provisional price adjustments and included in revenue in

the consolidated statement of income and presented

separately in note 6 of these consolidated financial

statements.

Streaming Arrangements

As the deferred revenue on streaming arrangements is

considered variable consideration, an adjustment is made

to the transaction price per unit each time there is a change

in the underlying production profile of a mine (typically in Q4

of each year). The change in the transaction price per unit

results in a cumulative catch-up adjustment to revenue in

the period in which the change is made, reflecting the new

production profile expected to be delivered under the

streaming agreement. A corresponding cumulative catch-up

adjustment is made to accretion expense, reflecting the

impact of the change in the deferred revenue balance.

f) Exploration and Evaluation

Exploration expenditures are the costs incurred in the initial

search for mineral deposits with economic potential or in

the process of obtaining more information about existing

mineral deposits. Exploration expenditures typically include

costs associated with prospecting, sampling, mapping,

diamond drilling and other work involved in searching for

ore.

Evaluation expenditures are the costs incurred to

establish the technical and commercial viability of

developing mineral deposits identified through exploration

activities or by acquisition. Evaluation expenditures include

the cost of: (i) establishing the volume and grade of

deposits through drilling of core samples, trenching and

sampling activities in an ore body that is classified as either

a mineral resource or a proven and probable reserve;

(ii) determining the optimal methods of extraction and

metallurgical and treatment processes; (iii) studies related

to surveying, transportation and infrastructure requirements;

(iv) permitting activities; and (v) economic evaluations to

determine whether development of the mineralized material

is commercially justified, including scoping, pre-feasibility

and final feasibility studies.

Exploration and evaluation expenditures are

expensed as incurred unless management determines that

probable future economic benefits will be generated as a

result of the expenditures. Once the technical feasibility and

commercial viability of a program or project has been

demonstrated with a pre-feasibility study, and we have

recognized reserves in accordance with the Canadian

Securities Administrators’ National Instrument 43-101 -

Standards of Disclosure for Mineral Projects, we account

for future expenditures incurred in the development of that

program or project in accordance with our policy for

property, plant and equipment, as described in note 2l.

g) Production Stage

A mine that is under construction is determined to enter the

production stage when the project is in the location and

condition necessary for it to be capable of operating in the

manner intended by management. We use the following

factors to assess whether these criteria have been met:

(1) the level of capital expenditures compared to

construction cost estimates; (2) the completion of a

reasonable period of commissioning and testing of mine

plant and equipment; (3) the ability to produce minerals in

saleable form (within specifications); and (4) the ability to

sustain ongoing production of minerals.

When a mine construction project moves into the

production stage, the capitalization of certain mine

construction costs ceases and costs are either capitalized

to inventory or expensed, except for capitalizable costs

related to property, plant and equipment additions or

improvements, open pit stripping activities that provide a

future benefit, underground mine development or

expenditures that meet the criteria for capitalization in

accordance with IAS 16 Property, Plant and Equipment.

h) Taxation

Current tax for each taxable entity is based on the local

taxable income at the local statutory tax rate enacted or

substantively enacted at the balance sheet date and

includes adjustments to tax payable or recoverable in

respect of previous periods.

Deferred tax is recognized using the balance sheet

method in respect of all temporary differences between the

tax bases of assets and liabilities, and their carrying

amounts for financial reporting purposes, except as

indicated below.

Deferred income tax liabilities are recognized for

all taxable temporary differences, except:

•Where the deferred income tax liability arises from the

initial recognition of goodwill, or the initial recognition of

an asset or liability in an acquisition that is not a

business combination and, at the time of the

acquisition, affects neither the accounting profit nor

taxable profit or loss; and

•In respect of taxable temporary differences associated

with investments in subsidiaries and interests in joint

arrangements, where the timing of the reversal of the

temporary differences can be controlled and it is

probable that the temporary differences will not reverse

in the foreseeable future.

Deferred income tax assets are recognized for all

deductible temporary differences and the carryforward of

unused tax assets and unused tax losses, to the extent that

it is probable that taxable profit will be available against

which the deductible temporary differences and the

carryforward of unused tax assets and unused tax losses

can be utilized, except:

•Where the deferred income tax asset relating to the

deductible temporary difference arises from the initial

recognition of an asset or liability in an acquisition that

is not a business combination and, at the time of the

acquisition, affects neither the accounting profit nor

taxable profit or loss; and

•In respect of deductible temporary differences

associated with investments in subsidiaries and

interests in joint arrangements, deferred tax assets are

recognized only to the extent that it is probable that the

temporary differences will reverse in the foreseeable

future and taxable profit will be available against which

the temporary differences can be utilized.

The carrying amount of deferred income tax assets is

reviewed at each balance sheet date and reduced to the

extent that it is no longer probable that sufficient taxable

profit will be available to allow all or part of the deferred

income tax asset to be utilized. To the extent that an asset

not previously recognized fulfills the criteria for recognition,

a deferred income tax asset is recorded.

Deferred tax is measured on an undiscounted

basis at the tax rates that are expected to apply in the

periods in which the asset is realized or the liability is

settled, based on tax rates and tax laws enacted or

substantively enacted at the balance sheet date.

Current and deferred tax relating to items

recognized directly in equity are recognized in equity and

not in the income statement.

The Company is subject to assessments by

various taxation authorities, who may interpret tax

legislation differently than the Company. Tax liabilities for

uncertain tax positions are adjusted by the Company to

reflect its best estimate of the probable outcome of

assessments and in light of changing facts and

circumstances, such as the completion of a tax audit,

expiration of a statute of limitations, the refinement of an

estimate, and interest accruals associated with the

uncertain tax positions until they are resolved. Some of

these adjustments require significant judgment in estimating

the timing and amount of any additional tax expense.

Royalties and Special Mining Taxes

Income tax expense includes the cost of royalties and

special mining taxes payable to governments that are

calculated based on a percentage of taxable profit whereby

taxable profit represents net income adjusted for certain

items defined in the applicable legislation.

Indirect Taxes

Indirect tax recoverable is recorded at its undiscounted

amount and is disclosed as non-current if not expected to

be recovered within 12 months.

i) Other Investments

Investments in publicly quoted equity securities that are

neither subsidiaries nor associates are categorized as

FVOCI pursuant to the irrevocable election available in

IFRS 9 for these instruments. FVOCI equity investments

are recorded at fair value with all realized and unrealized

gains and losses recorded permanently in OCI. Warrant

investments are classified as fair value through profit or loss

(“FVPL”).

j) Inventory

Material extracted from our mines is classified as either ore

or waste. Ore represents material that, at the time of

extraction, we expect to process into a saleable form and

sell at a profit. Raw materials are comprised of both ore in

stockpiles and ore on leach pads as processing is required

to extract benefit from the ore. Ore is accumulated in

stockpiles that are subsequently processed into gold/copper

in a saleable form. The recovery of gold and copper from

certain oxide ores is achieved through the heap leaching

process. Work in process represents gold/copper in the

processing circuit that has not completed the production

process, and is not yet in a saleable form. Finished goods

inventory represents gold/copper in saleable form.

Metal inventories are valued at the lower of cost

and net realizable value. Cost is determined on a weighted

average basis and includes all costs incurred, based on a

normal production capacity, in bringing each product to its

present location and condition. Cost of inventories

comprises: direct labor, materials and contractor expenses,

including non-capitalized stripping costs; depreciation on

PP&E including capitalized stripping costs; and an

allocation of general and administrative costs. As ore is

removed for processing, costs are removed based on the

average cost per ounce/pound in the stockpile. Net

realizable value is determined with reference to relevant

market prices less applicable variable selling and

downstream processing costs. Inventory provisions are

reversed to reflect subsequent improvements in net

realizable value where the inventory is still on hand.

Mine operating supplies represent commodity

consumables and other raw materials used in the

production process, as well as spare parts and other

maintenance supplies that are not classified as capital

items. Provisions are recorded to reduce mine operating

supplies to net realizable value, which is generally

calculated by reference to its salvage or scrap value, when

it is determined that the supplies are obsolete.

k) Royalties

Certain of our properties are subject to royalty

arrangements based on mineral production at the

properties. The primary type of royalty is a net smelter

return (“NSR”) royalty. Under this type of royalty we pay the

holder an amount calculated as the royalty percentage

multiplied by the value of gold production at market gold

prices less third-party smelting, refining and transportation

costs. Royalty expense is recorded on completion of the

production or sales process in cost of sales. Other types of

royalties include:

•Net profits interest royalty to a party other than a

government,

•Modified NSR royalty,

•Net smelter return sliding scale royalty,

•Gross proceeds sliding scale royalty,

•Gross smelter return royalty,

•Net value royalty,

•Land tenement royalty, and a

•Gold revenue royalty.

l) Property, Plant and Equipment

Estimated Useful Lives of Major Asset Categories


Buildings, plant and equipment	2 - 38 years
Underground mobile equipment	3 - 7 years
Light vehicles and other mobile equipment	2 - 10 years
Furniture, computer and office equipment	2 - 10 years

Buildings, Plant and Equipment

At acquisition, we record buildings, plant and equipment at

cost, including all expenditures incurred to prepare an asset

for its intended use. These expenditures consist of: the

purchase price; brokers’ commissions; and installation

costs including architectural, design and engineering fees,

legal fees, survey costs, site preparation costs, freight

charges, transportation insurance costs, duties, testing and

preparation charges.

Buildings, plant and equipment are depreciated on

a straight-line basis over their expected useful life, which

commences when the assets are considered available for

use. Once buildings, plant and equipment are considered

available for use, they are measured at cost less

accumulated depreciation and applicable impairment

losses.

Depreciation on equipment utilized in the

development of assets, including open pit and underground

mine development, is recapitalized as development costs

attributable to the related asset.

Mineral Properties

Mineral properties consist of: the fair value attributable to

mineral reserves and resources acquired in a business

combination or asset acquisition; underground mine

development costs; open pit mine development costs;

capitalized exploration and evaluation costs; and capitalized

interest. In addition, we incur project costs which are

generally capitalized when the expenditures result in a

future benefit.

i) Acquired Mining Properties

On acquisition of a mining property, we prepare an estimate

of the fair value attributable to the proven and probable

mineral reserves, mineral resources and exploration

potential attributable to the property. The estimated fair

value attributable to the mineral reserves and the portion of

mineral resources considered to be probable of economic

extraction at the time of the acquisition is depreciated on a

units of production (“UOP”) basis whereby the denominator

is the proven and probable reserves and the portion of

mineral resources considered to be probable of economic

extraction based on the current life of mine (“LOM”) plan

that benefit from the development and are considered

probable of economic extraction. The estimated fair value

attributable to mineral resources that are not considered to

be probable of economic extraction at the time of the

acquisition is not subject to depreciation until the resources

become probable of economic extraction in the future. The

estimated fair value attributable to exploration licenses is

recorded as an intangible asset and is not subject to

depreciation until the property enters production.

ii) Underground Mine Development Costs

At our underground mines, we incur development costs to

build new shafts, declines, drifts and ramps that will enable

us to physically access ore underground. The time over

which we will continue to incur these costs depends on the

mine life. These underground development costs are

capitalized as incurred.

Capitalized underground development costs are

depreciated on a UOP basis, whereby the denominator is

the estimated ounces/pounds of gold/copper in proven and

probable reserves and the portion of resources considered

probable of economic extraction based on the current LOM

plan that benefit from the development and are considered

probable of economic extraction.

iii) Open Pit Mine Development Costs

In open pit mining operations, it is necessary to remove

overburden and other waste materials to access ore from

which minerals can be extracted economically. The process

of mining overburden and waste materials is referred to as

stripping. Stripping costs incurred in order to provide initial

access to the ore body (referred to as pre-production

stripping) are capitalized as open pit mine development

costs.

Pre-production stripping costs are capitalized until

an “other than de minimis” level of mineral is extracted,

after which time such costs are either capitalized to

inventory or, if they qualify as an open pit stripping activity

that provides a future benefit, to PP&E. We consider

various relevant criteria to assess when an “other than de

minimis” level of mineral is produced. Some of the criteria

considered would include, but are not limited to, the

following: (1) the amount of minerals mined versus total

ounces in ore expected over the LOM; (2) the amount of

ore tonnes mined versus total LOM expected ore tonnes

mined; (3) the current stripping ratio versus the strip ratio

expected over the LOM; and (4) the ore grade mined

versus the grade expected over the LOM.

Stripping costs incurred during the production

stage of an open pit are accounted for as costs of the

inventory produced during the period that the stripping

costs are incurred, unless these costs are expected to

provide a future economic benefit to an identifiable

component of the ore body. Components of the ore body

are based on the distinct development phases identified by

the mine planning engineers when determining the optimal

development plan for the open pit. Production phase

stripping costs generate a future economic benefit when the

related stripping activity: (1) improves access to a

component of the ore body to be mined in the future;

(2) increases the fair value of the mine (or open pit) as

access to future mineral reserves becomes less costly; and

(3) increases the productive capacity or extends the

productive life of the mine (or open pit). Production phase

stripping costs that are expected to generate a future

economic benefit are capitalized as open pit mine

development costs.

Capitalized open pit mine development costs are

depreciated on a UOP basis whereby the denominator is

the estimated ounces/pounds of gold/copper in proven and

probable reserves and the portion of resources considered

probable of economic extraction based on the current LOM

plan that benefit from the development and are considered

probable of economic extraction.

Construction-in-Progress

Assets under construction are capitalized as construction-

in-progress until the asset is available for its intended use.

The cost of construction-in-progress comprises its purchase

price and any costs directly attributable to bringing it into

working condition for its intended use. Construction-in-

progress amounts related to development projects are

included in the carrying amount of the development project.

Construction-in-progress amounts incurred at operating

mines are presented as a separate asset within PP&E.

Construction-in-progress also includes deposits on long

lead items. Construction-in-progress is not depreciated.

Depreciation commences once the asset is complete,

commissioned and available for use.

Capitalized Interest

We capitalize interest costs for qualifying assets. Qualifying

assets are assets that require a significant amount of time

to prepare for their intended use, including projects that are

in the exploration and evaluation, development or

construction stages. Qualifying assets also include

significant expansion projects at our operating mines.

Capitalized interest costs are considered an element of the

cost of the qualifying asset which is determined based on

gross expenditures incurred on an asset. Capitalization

ceases when the asset is substantially complete or if active

development is suspended or ceases. Where the funds

used to finance a qualifying asset form part of general

borrowings, the amount capitalized is calculated using a

weighted average of rates applicable to the relevant

borrowings during the period. Where funds borrowed are

directly attributable to a qualifying asset, the amount

capitalized represents the borrowing costs specific to those

borrowings. Where surplus funds available out of money

borrowed specifically to finance a project are temporarily

invested, the total capitalized interest is reduced by income

generated from short-term investments of such funds.

m) Impairment (and Reversals of Impairment) of Non-

Current Assets

We review and test the carrying amounts of PP&E and

intangible assets with finite lives when an indicator of

impairment is considered to exist. Impairment (or reversals

of impairment) assessments on PP&E and intangible assets

are conducted at the level of the cash generating unit

(“CGU”), which is the lowest level for which identifiable cash

flows are largely independent of the cash flows of other

assets and includes liabilities specific to the CGU. For

operating mines and projects, the individual mine/project

represents a CGU for impairment testing.

The recoverable amount of a CGU is the higher of

Value in Use (“VIU”) and Fair Value Less Costs of Disposal

(“FVLCD”). We have determined that the FVLCD is greater

than the VIU amounts and is therefore used as the

recoverable amount for impairment testing purposes. An

impairment loss is recognized for any excess of the carrying

amount of a CGU over its recoverable amount where both

the recoverable amount and carrying value include the

associated other assets and liabilities, including taxes

where applicable, of the CGU. Where it is not appropriate to

allocate the loss to a separate asset, an impairment loss

related to a CGU is allocated to the carrying amount of the

assets of the CGU on a pro rata basis based on the

carrying amount of its non-monetary assets.

Impairment Reversal

An assessment is made at each reporting date to determine

whether there is an indication that previously recognized

impairment losses may no longer exist or may have

decreased. A previously recognized impairment loss is

reversed only if there has been a change in the

assumptions used to determine the CGU’s recoverable

amount since the last impairment loss was recognized. This

reversal is recognized in the consolidated statements of

income and is limited to the carrying value that would have

been determined, net of any depreciation where applicable,

had no impairment charge been recognized in prior years.

When an impairment reversal is undertaken, the

recoverable amount is assessed by reference to the higher

of VIU and FVLCD. We have determined that the FVLCD is

greater than the VIU amounts and is therefore used as the

recoverable amount for impairment testing purposes.

n) Intangible Assets

On acquisition of a mineral property in the exploration

stage, we prepare an estimate of the fair value attributable

to the exploration licenses acquired, including the fair value

attributable to mineral resources, if any, of that property.

The fair value of the exploration license is recorded as an

intangible asset (acquired exploration potential) as at the

date of acquisition. When an exploration stage property

moves into development, the acquired exploration potential

attributable to that property is transferred to mining interests

within PP&E.

We also have water rights associated with our

mineral properties. Upon acquisition, they are measured at

initial cost and are depreciated when they are being used.

They are also subject to impairment testing when an

indicator of impairment is considered to exist.

o) Goodwill

Goodwill is tested for impairment in Q4 and also when there

is an indicator of impairment. At the date of acquisition,

goodwill is assigned to the CGU or group of CGUs that is

expected to benefit from the synergies of the business

combination. For the purposes of impairment testing,

goodwill is allocated to the Company’s operating segments,

which are our individual minesites, and corresponds to the

level at which goodwill is internally monitored by the Chief

Operating Decision Maker (“CODM”). Goodwill impairment

charges are not reversible.

For a CGU to which goodwill has been allocated,

the most recent recoverable amount determined for the

CGU may be used in the annual impairment assessment of

that CGU in the current year provided all the following

criteria are met:

•the assets and liabilities making up the CGU have not

changed significantly (change in book value or change

in nature of assets/ liabilities in CGU) since the most

recent recoverable amount calculation;

•The most recent recoverable amount calculation,

completed in prior year, resulted in an amount that

exceeded the carrying amount of the CGU by a

substantial margin; and

•Based on an analysis of events that have occurred and

circumstances that have changed since the most

recent recoverable amount calculation, the likelihood

that a current recoverable amount determination will be

less than the carrying amount of the CGU is remote.

p) Debt

Debt is recognized initially at fair value, net of financing

costs incurred, and subsequently measured at amortized

cost. Any difference between the amounts originally

received and the redemption value of the debt is recognized

in the consolidated statements of income over the period to

maturity using the effective interest method.

q) Derivative Instruments and Hedge Accounting

Derivative Instruments

Derivative instruments are recorded at fair value on the

consolidated balance sheet, classified based on contractual

maturity. Derivative instruments are classified as either

hedges of the fair value of recognized assets or liabilities or

of firm commitments (“fair value hedges”), hedges of highly

probable forecasted transactions (“cash flow hedges”) or

non-hedge derivatives. Derivatives designated as either a

fair value or cash flow hedge that are expected to be highly

effective in achieving offsetting changes in fair value or

cash flows are assessed on an ongoing basis to determine

that they actually have been highly effective throughout the

financial reporting periods for which they were designated.

Derivative assets and derivative liabilities are shown

separately in the balance sheet unless there is a legal right

to offset and intent to settle on a net basis.

Cash Flow Hedges

The effective portion of changes in the fair value of

derivatives that are designated and qualify as cash flow

hedges is recognized in equity. The gain or loss relating to

the ineffective portion is recognized in the consolidated

statements of income. Amounts accumulated in equity are

transferred to the consolidated statements of income in the

period when the forecasted transaction impacts earnings.

When the forecasted transaction that is hedged results in

the recognition of a non-financial asset or a non-financial

liability, the gains and losses previously deferred in equity

are transferred from equity and included in the

measurement of the initial carrying amount of the asset or

liability.

When a derivative designated as a cash flow

hedge expires or is sold and the forecasted transaction is

still expected to occur, any cumulative gain or loss relating

to the derivative that is recorded in equity at that time

remains in equity and is recognized in the consolidated

statements of income when the forecasted transaction

occurs. When a forecasted transaction is no longer

expected to occur, the cumulative gain or loss that was

recorded in equity is immediately transferred to the

consolidated statements of income.

Non-Hedge Derivatives

Derivative instruments that do not qualify as either fair value

or cash flow hedges are recorded at their fair value at the

balance sheet date, with changes in fair value recognized in

the consolidated statements of income.

r) Environmental Rehabilitation Provision

Mining, extraction and processing activities normally give

rise to obligations for environmental rehabilitation.

Rehabilitation work can include facility decommissioning

and dismantling; removal or treatment of waste materials;

site and land rehabilitation, including compliance with and

monitoring of environmental regulations; security and other

site-related costs required to perform the rehabilitation

work; and operation of equipment designed to reduce or

eliminate environmental effects. The extent of work required

and the associated costs are dependent on the

requirements of relevant authorities and our environmental

policies. Routine operating costs that may impact the

ultimate closure and rehabilitation activities, such as waste

material handling conducted as an integral part of a mining

or production process, are not included in the provision.

Abnormal costs arising from unforeseen circumstances,

such as the contamination caused by unplanned

discharges, are recognized as an expense and liability

when the event that gives rise to an obligation occurs and

reliable estimates of the required rehabilitation costs can be

made.

Provisions for the cost of each rehabilitation

program are normally recognized at the time that an

environmental disturbance occurs or a new legal or

constructive obligation is determined. When the extent of

disturbance increases over the life of an operation, the

provision is increased accordingly. The major parts of the

carrying amount of provisions relate to closure/rehabilitation

of tailings facilities, heap leach pads and waste dumps;

demolition of buildings/mine facilities; ongoing water

treatment; and ongoing care and maintenance and security

of closed mines. Costs included in the provision encompass

all closure and rehabilitation activity expected to occur

progressively over the life of the operation at the time of

closure and post-closure in connection with disturbances as

at the reporting date. Estimated costs included in the

determination of the provision reflect the risks and

probabilities of alternative estimates of cash flows required

to settle the obligation at each particular operation. The

expected rehabilitation costs are estimated based on the

cost of external contractors performing the work or the cost

of performing the work internally depending on

management’s intention.

The timing of the actual rehabilitation expenditure

is dependent upon a number of factors such as the life and

nature of the asset, the operating license conditions and the

environment in which the mine operates. Expenditures may

occur before and after closure and can continue for an

extended period of time depending on rehabilitation

requirements. Rehabilitation provisions are measured at the

expected value of future cash flows, which exclude the

effect of inflation, discounted to their present value using a

current US dollar real risk-free pre-tax discount rate. The

unwinding of the discount, referred to as accretion expense,

is included in finance costs and results in an increase in the

amount of the provision. Provisions are updated each

reporting period for changes to expected cash flows and for

the effect of changes in the discount rate, and the change in

estimate is added to or deducted from the related asset and

depreciated over the expected economic life of the

operation to which it relates.

Significant judgments and estimates are involved

in forming expectations of future activities, the amount and

timing of the associated cash flows and the period over

which we estimate those cash flows. Those expectations

are formed based on existing environmental and regulatory

requirements or, if more stringent, our environmental

policies which give rise to a constructive obligation.

When provisions for closure and rehabilitation are

initially recognized, the corresponding cost is capitalized as

an asset, representing part of the cost of acquiring the

future economic benefits of the operation. The capitalized

cost of closure and rehabilitation activities is recognized in

PP&E and depreciated over the expected economic life of

the operation to which it relates.

Adjustments to the estimated amount and timing of

future closure and rehabilitation cash flows are a normal

occurrence in light of the significant judgments and

estimates involved. The principal factors that can cause

expected cash flows to change are: the construction of new

processing facilities; changes in the quantities of material in

reserves and resources with a corresponding change in the

life of mine plan; changing ore characteristics that impact

required environmental protection measures and related

costs; changes in water quality or volumes that impact the

extent of water treatment required; changes in discount

rates; changes in foreign exchange rates; changes in

Barrick’s closure policies; and changes in laws and

regulations governing the protection of the environment.

Rehabilitation provisions are adjusted as a result

of changes in estimates and assumptions. Those

adjustments are accounted for as a change in the

corresponding cost of the related assets, including the

related mineral property, except where a reduction in the

provision is greater than the remaining net book value of

the related assets, in which case the value is reduced to nil

and the remaining adjustment is recognized in the

consolidated statements of income. In the case of closed

sites, changes in estimates and assumptions are

recognized immediately in the consolidated statements of

income. For an operating mine, the adjusted carrying

amount of the related asset is depreciated prospectively.

Adjustments also result in changes to future finance costs.

Provisions are discounted to their present value using a

current US dollar real risk-free pre-tax discount rate and the

accretion expense is included in finance costs.

s) Stock-Based Compensation

We recognize the expense related to these plans over the

vesting period, beginning once the grant has been

approved and announced to the beneficiaries.

Barrick offers cash-settled (Restricted Share Units

(“RSU”), Deferred Share Units (“DSU”) and Performance

Granted Share Units (“PGSU”)) awards to certain

employees, officers and directors of the Company.

Restricted Share Units

Under our Long-Term Incentive Plan, selected employees

are granted RSUs where each RSU has a value equal to

one Barrick common share. RSUs generally vest within

three years in cash and the after-tax value of the award

may be used to purchase common shares on the open

market, depending on the terms of the grant. Additional

RSUs are credited to reflect dividends paid on Barrick

common shares over the vesting period.

A liability for RSUs is measured at fair value on the

grant date and is subsequently adjusted for changes in fair

value. The liability is recognized on a straight-line basis

over the vesting period, with a corresponding charge to

compensation expense, as a component of general and

administrative expenses and cost of sales. Compensation

expenses for RSUs incorporate an estimate for expected

forfeiture rates based on which the fair value is adjusted.

Deferred Share Units

Under our DSU plan, Directors must receive at least 63.6%

of their basic annual retainer in the form of DSUs or cash to

purchase common shares that cannot be sold, transferred

or otherwise disposed of until the Director leaves the Board.

Each DSU has the same value as one Barrick common

share. DSUs must be retained until the Director leaves the

Board, at which time the cash value of the DSUs is paid

out. Additional DSUs are credited to reflect dividends paid

on Barrick common shares. The initial fair value of the

liability is calculated as of the grant date and is recognized

immediately. Subsequently, at each reporting date and on

settlement, the liability is remeasured, with any change in

fair value recorded as compensation expense in the period.

Performance Granted Share Units

Under our PGSU plan, select employees are granted

PGSUs, where each PGSU has a value equal to one

Barrick common share. Annual PGSU awards are

determined based on a multiple ranging from three to six

times base salary (depending on position and level of

responsibility) multiplied by a performance factor. PGSUs

vest within three years in cash, and the after-tax value of

the award is used to purchase common shares on the open

market. Generally, these shares cannot be sold until the

employee meets their share ownership requirement (in

which case only those Barrick shares in excess of the

requirement can be sold), or until they retire or leave the

Company.

The initial fair value of the liability is calculated as

of the grant date and is recognized within compensation

expense using the straight-line method over the vesting

period. Subsequently, at each reporting date and on

settlement, the liability is remeasured, with any changes in

fair value recorded as compensation expense.

t) New Accounting Standards Issued

IFRS 18 Presentation and Disclosure in Financial

Statements (effective for annual periods beginning on or

after January 1, 2027)

In April 2024, the IASB issued IFRS 18 which will replace

IAS 1 Presentation of Financial Statements. Even though

IFRS 18 will not impact the recognition or measurement of

items in the financial statements, it will impact presentation

and disclosure of certain aspects of the financial statements

including management-defined performance measures

within the financial statements. We are currently assessing

the detailed implications of applying the new standard on

the financial statements and the following potential impacts

have been identified based on our preliminary assessment:

•Although the adoption of IFRS 18 will have no impact

on net income, items of income and expenses in the

statement of income will be grouped into new

categories resulting in new subtotals and/or line items

being presented, including operating profit, and

changes in how certain existing subtotals are